/raid1/www/Hosts/bankrupt/TCRAP_Public/200515.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

          Friday, May 15, 2020, Vol. 23, No. 98

                           Headlines



A U S T R A L I A

ARMOUR LEGAL: First Creditors' Meeting Set for May 21
AUSSIE DISPOSALS: Second Creditors' Meeting Set for May 20
BIONIC VISION: Second Creditors' Meeting Set for May 20
CLARIDGE COLLISION: Second Creditors' Meeting Set for May 25
ILLAWARRA HAWKS: Players and Staff AUD750,000 Out of Pocket

MUNCE RACING: Second Creditors' Meeting Set for May 20
STELLER 239: Second Creditors' Meeting Set for May 20
VIRGIN AUSTRALIA: Plan for Dreamliner Fleet Fuels Bidder Disquiet


C H I N A

BEIJING KUNLUN: S&P Withdraws 'BB-' Long-Term Issuer Credit Rating
CHINA ZHENGTONG: Moody's Cuts CFR & Sr. Unsec. Rating to B3
HARTFORD GREAT: Has $1.5-Mil. Net Loss for Quarter Ended Jan. 31
MEINIAN ONEHEALTH: Fitch Cuts LT IDR & Sr. Unsec. Rating to BB-
ZHENRO PROPERTIES: Fitch Rates New USD Senior Notes 'B+'



I N D I A

A. S. BETGERI: CRISIL Keeps B+ INR3cr Debt Rating in Not Coop.
ACCORD LIFE: ICRA Keeps 'D' INR50cr Loan Rating in Not Cooperating
ALLIED ENERGY: ICRA Keeps 'D' Debt Ratings in Not Cooperating
ANAS MOTORS: CRISIL Lowers Rating on INR6.5cr Loans to B+
ASHCONS INFRA: CRISIL Lowers Rating on INR10cr Loan to B+

ATLANTIS BUILDERS: CRISIL Keeps B INR20cr Loan Rating in Not Coop.
B SATYANARAYANA: CRISIL Keeps B+ Debt Ratings in Not Cooperating
BAER SHOES: CRISIL Downgrades Rating on INR4.65cr Loan to B+
BANSAL BROTHERS: CRISIL Lowers Rating on INR12cr Loan to B+
BASUDHA UDYOG: CRISIL Keeps D Debt Ratings in Not Cooperating

BRITISH BIOLOGICALS: CRISIL Lowers Rating on INR15cr Loan to B+
CAPITAL ELECTRICALS: CRISIL Keeps B INR7cr Loan Rating in Not Coop.
CDP (INDIA): CRISIL Downgrades Rating on INR10cr Credit to B+
DEEPAK INTERNATIONAL: CRISIL Lowers Rating on INR7cr Loan to B+
DELHI INT'L AIRPORT: Fitch Affirms BB+ IDR, Outlook Negative

DHANBAD ROCKWOOL: CRISIL Lowers Rating on INR4.5cr Loan to B+
DHANYA STEEL: CRISIL Keeps D INR13cr Loan Rating in Not Cooperating
DOLPHIN PROMOTERS: CRISIL Keeps B+ INR19cr Loan Rating in Not Coop.
DUTTA SUPPLY: CRISIL Lowers Rating on INR3.7cr Loan to B+
EASTERN PILLING: CRISIL Keeps B+ Debt Rating in Not Cooperating

ECHO MOTORS: CRISIL Lowers Rating on INR11.5cr Loans to B+
ENAM CASTINGS: CRISIL Lowers Rating on INR6cr Loans to B+
ENTEL MOTORS: CRISIL Lowers Rating on INR20cr Loans to B+
EZONE SECURITY: CRISIL Lowers Rating on INR8cr Cash Credit to B+
GMR HYDERABAD AIRPORT: Fitch Affirms BB+ IDR, Outlook Negative

JET AIRWAYS: Insolvency Resolution Professional Seeks Fresh EoI
KAMACHI INDUSTRIES: Ind-Ra Moves 'D' LT Rating to Non-Cooperating
KAPOTEX INDUSTRIES: ICRA Reaffirms B+ Rating on INR2.28cr Loan
LAKSHMI SUBBAIAAH: Insolvency Resolution Process Case Summary
MOONLIGHT MARBLES: ICRA Keeps 'D' Debt Ratings in Not Cooperating

MUSLIM EDUCATIONAL: CRISIL Withdraws 'B' Rating on INR19.48cr Loan
NAV JYOTI: CRISIL Keeps D Debt Ratings in Not Cooperating
NIKHIL FOOTWEARS: CRISIL Keeps D Debt Ratings in Not Cooperating
RAGHUVIR DEVELOPERS: Ind-Ra Lowers Long Term Issuer Rating to 'BB'
REAL GROWTH: ICRA Keeps 'D' Debt Ratings in Not Cooperating

SAPPHIRE LIFESCIENCES: ICRA Reaffirms D Rating on INR18.5cr Loans
SIXTH ENERGY: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
VITTHAL RUKHMAI: CRISIL Reaffirms B+ Rating on INR6.15cr Loans
[*] INDIA: Fresh Crisis Looms for Shadow Banks After Fund Shuts


I N D O N E S I A

GOLDEN ENERGY MINES: Fitch Affirms LT IDR at 'B+', Outlook Stable


M A L A Y S I A

1MDB: 'Wolf of Wall Street' Producer Reaches Settlement


P H I L I P P I N E S

CHINA BANKING: Fitch Alters Outlook to Negative on Coronavirus
PHILIPPINE NATIONAL: Fitch Cuts LT IDRs to 'BB', Outlook Stable


S I N G A P O R E

GOLDEN ENERGY: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
OCEAN TANKERS: High Court Grants Interim Judicial Management


S R I   L A N K A

PEOPLE'S LEASING: Fitch Alters Outlook on 'B-' LT IDR to Negative


T A I W A N

TAICHUNG COMMERCIAL: Fitch Affirms BB+/B Issuer Default Ratings

                           - - - - -


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

ARMOUR LEGAL: First Creditors' Meeting Set for May 21
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Armour Legal
Pty Ltd will be held on May 21, 2020, at 11:00 a.m. The meeting
will be held virtually using telephone conference facilities.

Peter Gountzos and Michael Carrafa of SV Partners were appointed as
administrators of Armour Legal on May 11, 2020.

AUSSIE DISPOSALS: Second Creditors' Meeting Set for May 20
----------------------------------------------------------
A second meeting of creditors in the proceedings of Aussie
Disposals Pty Ltd has been set for May 20, 2020, at 11:00 a.m. at
345 South Gippsland Highway, in Dandenong South.

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 19, 2020, at 4:00 p.m.

Peter Goodin of Magnetic Insolvency was appointed as administrator
of Aussie Disposals on April 14, 2020.

BIONIC VISION: Second Creditors' Meeting Set for May 20
-------------------------------------------------------
A second meeting of creditors in the proceedings of Bionic Vision
Technologies Pty Ltd has been set for May 20, 2020, at 3:30 p.m.
The meeting will be held virtually via online video conferencing.


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 19, 2020, at 12:00 p.m.

Gideon Rathner and Matthew Sweeny of Lowe Lippmann were appointed
as administrators of Bionic Vision on April 7, 2020.


CLARIDGE COLLISION: Second Creditors' Meeting Set for May 25
------------------------------------------------------------
A second meeting of creditors in the proceedings of Claridge
Collision Repairs Pty Ltd has been set for May 25, 2020, at 11:00
a.m. via teleconference only.

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 22, 2020, at 5:00 p.m.

Nicholas David Cooper and Dominic Cantone of Worrells Solvency &
Forensic Accountants were appointed as administrators of Claridge
Collision on April 9, 2020.

ILLAWARRA HAWKS: Players and Staff AUD750,000 Out of Pocket
-----------------------------------------------------------
Mitch Jennings at Bega District News reports that a preliminary
report has found Illawarra Hawks Proprietary Limited was AUD2.4
million in debt when placed into administration in April, with
players and staff owed an estimated AUD750,000 in entitlements.

They are among the revelations in the report prepared by
administrator Michael Jones, which shows the club suffered losses
of more than AUD1.6 million in the two years after Simon Stratford
became sole owner of the club, Bega District News relates.

A former minority partner, Mr. Stratford took sole ownership of the
club in March 2017 when former majority owner James Spencely
relinquished his controlling stake in the company he created in
2015, the report says.

Having sustained "ongoing losses since 2016" the report showed the
club ran at a loss of more than AUD1 million in 2018 and more than
AUD630,000 in 2019, according to Bega District News.

Bega District News says despite an initial spike in revenue due to
the arrival of NBA Draft Prospect LaMelo Ball, the club had lost
more than AUD98,000 for the current year when Stratford placed the
club into voluntary administration on April 2.

It followed unsuccessful attempts from Mr. Stratford to sell the
club to potential buyers in the preceding months after sinking more
than AUD1.5 million of his own money into the company this
financial year.

The report cited poor ticket sales, injuries to key players and a
lack of recent success in the NBL as contributing factors to the
club's financial woes, as well increased staffing and
administration costs, Bega District News relays.

It also stated that any value in the club's NBL license
"evaporated" once it was stripped by the league when the company
was placed into administration.

That process saw all player and staff employment contracts
terminated, with around AUD750,000 in entitlements, such as
redundancy, leave and Superannuation still owing.

Should the company go into liquidation, former staff stand to lose
a huge chunk of the money owed them, with the report claiming an
"optimistic" liquidation scenario would see them recover just 20
cents in the dollar, according to Bega District News.

It's not the first time club staff have had to fight for such
entitlements, with the club first reported to ATO over outstanding
Super in late 2018, Bega District News says. It was ultimately
resolved but required the intervention of the NBL and Players
Association.

After taking back the Hawks license, the NBL claimed it was in
discussions to "address the issue of any outstanding player
entitlements from the 2019-20 season," but administrators are yet
to receive any correspondence from the league to that effect, Bega
District News relates.

Other debts include more than AUD500,000 owed to the ATO while
Stratford, the largest unsecured creditor, is owed almost AUD1.5
million in unsecured claims.

The report also stated the club "may have traded whilst insolvent"
since mid 2018 or earlier, offering a preliminary estimate of an
insolvent trading claim "in the vicinity of AUD768,426."

That claim could be investigated further should the company be
placed into liquidation which, as no Deed of Company Arrangement
has been proposed by Stratford or any other party, is the only
realistic option, Bega District News relays.

Should that occur at the next creditor's meeting on May 18, the
Hawks' new owners will need to create a new company with the
Illawarra Hawks' intellectual property transferred to the new
entity via the NBL which is still considering ownership bids, adds
Bega District News.

Michael Gregory Jones of Jones Partners was appointed as
administrator of Illawarra Hawks on April 2, 2020.

MUNCE RACING: Second Creditors' Meeting Set for May 20
------------------------------------------------------
A second meeting of creditors in the proceedings of Munce Racing
Pty Limited has been set for May 20, 2020, at 10:00 a.m. via Skype
for Business.  

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 19, 2020, at 4:00 p.m.

Geoffrey Trent Hancock and Simon John Thorn of PKF was appointed as
administrator of Munce Racing on April 17, 2020.


STELLER 239: Second Creditors' Meeting Set for May 20
-----------------------------------------------------
A second meeting of creditors in the proceedings of Steller 239 Pty
Ltd has been set for May 20, 2020, at 10:00 a.m.  The meeting will
be held virtually using telephone conference facilities.  

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 19, 2020, at 5:00 p.m.

Timothy James Brace, Michael Carrafa and Peter Gountzos of SV
Partners were appointed as administrator of Steller 239 on Sept.
20, 2019.

VIRGIN AUSTRALIA: Plan for Dreamliner Fleet Fuels Bidder Disquiet
-----------------------------------------------------------------
Patrick Hatch and Sarah Danckert at The Sydney Morning Herald
reports that Virgin Australia's administrators have proposed the
airline buy a fleet of new long-range Boeing Dreamliner 787
aircraft, but prospective buyers are concerned its plan for the
collapsed airline ignores how fundamentally COVID-19 has changed
the aviation industry.

The Herald relates that nineteen parties are weighing up rescue
bids for Virgin following its collapse last month, with preliminary
bids due by 6:00 p.m. May 15, and they have been presented with a
confidential management business plan for the relaunched carrier
called "Virgin v2.0".

According to the report, several sources close to the process, who
spoke on the condition of anonymity due to strict confidentiality
agreements, said the plan includes buying eight Boeing 787
Dreamliners to replace Virgin's existing international fleet of
five Boeing 777s and six Airbus A330s.

Boeing 787s have a "list price" of between US$250 million and
US$338 million (AUD388 million to AUD525 million) depending on the
model, although airlines normally negotiate significant discounts,
the report notes.

Simplifying Virgin's fleet to reduce costs was a core part of chief
executive Paul Scurrah's turnaround plan for the airline prior to
it entering administration, the Herald states.

The Age and The Sydney Morning Herald previously revealed the
business plan, detailed in a memorandum distributed to key bidders,
involves maintaining an international network, which was under a
cloud because it was a source of heavy financial losses.

Those details come amid growing frustration from potential bidders
that Virgin's administrator, Deloitte, is asking them to buy a
business largely as it was before it collapsed and before the
COVID-19 pandemic brought the global aviation industry to a
standstill, says the Herald.

The Herald notes that airlines around the world have been
devastated by the pandemic and major industry players expect it to
take two to five years for passenger demand to recover. Deloitte
hopes to secure a new owner for Virgin by mid-August.

More than half a dozen people close to potential bidders or working
in senior aviation industry roles expressed concern and disbelief
Deloitte was not using its administration powers to more
aggressively restructure the airline by reducing its aircraft fleet
and considering employee redundancies in recognition that a
relaunched Virgin will operate in a significantly smaller aviation
market, according to the Herald.

"There's no recognition that the market has fundamentally changed,"
said one source, adding administrators were setting up the winning
bidder as the "bad guy" who would have to cut its fleet and
workforce after they take ownership.

"They are setting themselves up for the most catastrophic failure -
some of the consortiums are close to saying 'ok, fine we'll see you
in the liquidation'."

"This is the time to fix it," another source close to one bidder
said of the loss-making company. A third said the administration
appeared to be controlled by Virgin management, with Deloitte
adopting its long-term plan for the airline, the Herald relays.

Groups known to be considering a bid for Virgin include US private
equity firm Bain Capital, local private equity group BGH Capital
and Canadian asset manager Brookfield, the report discloses. The
Queensland government on Wednesday announced its intention to bid
for the airline, while co-founder Richard Branson is said to be
waiting in the wings to join a leading consortium, the Herald
adds.

                      About Virgin Australia

Brisbane, Queensland-based Virgin Australia is Australia's
second-largest airline. It commenced services in 2000 as Virgin
Blue, wholly owned by the Virgin Group.

As reported in the Troubled Company Reporter-Asia Pacific on April
22, 2020, Bloomberg News related that Virgin Australia Holdings
Ltd. became Asia's first airline to fall to the coronavirus after
the outbreak deprived the debt-burdened company of almost all
income.  Administrators at Deloitte, who have taken control of the
Brisbane-based carrier, aim to restructure the business and find
new owners within months.  More than 10 parties have expressed an
interest, Deloitte related on April 21.

According to Bloomberg, Virgin Australia, which has furloughed 80%
of its 10,000 workers, will continue to operate some flights for
essential workers, freight and the repatriation of Australians. The
airline's frequent flyer program is a separate company and is not
in administration.

Richard John Hughes, John Greig, Vaughan Strawbridge and Sal Algeri
of Deloitte were appointed as administrators of Virgin Australia,
et al., on April 20, 2020.

On April 29, 2020, the company and certain affiliates filed
petitions pursuant to Chapter 15 of the Bankruptcy Code in the U.S.
Bankruptcy Court for the Southern District of New York.



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C H I N A
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BEIJING KUNLUN: S&P Withdraws 'BB-' Long-Term Issuer Credit Rating
------------------------------------------------------------------
S&P Global Ratings withdrew its 'BB-' long-term issuer credit
rating on Beijing Kunlun Tech Co. Ltd. at the company's request.
The outlook was stable at the time of the withdrawal.


CHINA ZHENGTONG: Moody's Cuts CFR & Sr. Unsec. Rating to B3
-----------------------------------------------------------
Moody's Investors Service has downgraded China ZhengTong Auto
Services Holdings Ltd.'s corporate family rating and senior
unsecured debt ratings to B3 from B2.

The outlook on the ratings remains negative.

RATINGS RATIONALE

"The downgrade reflects ZhengTong's weaker-than-expected 2019
operating performance and reduced financial flexibility," says Roy
Zhang, a Moody's Vice President and Senior Analyst.

ZhengTong's new car sales declined 8.3% in 2019, despite its
favorable exposure to China's luxury auto market. Most luxury
brands have recorded positive sales growth in 2019 in China, hence
ZhengTong's relatively weaker performance has raised Moody's
concern over the deterioration of its operations, market position
and financial flexibility.

As of 2019, ZhengTong operates 135 dealership stores in China, down
from 140 at end of 2018. Its revenue and adjusted EBITDA fell 6.2%
and about 20% respectively in 2019.

At the same time, its reported cash to short term debt ratio fell
to 8.6% at end of 2019 from 19.1% at the end 2018.

"The negative outlook continues to reflect the uncertainty
associated with a challenging operating environment in China this
year," adds Zhang.

Moody's expects ZhengTong's sales and revenue to further decline in
2020, considering the coronavirus outbreak and weakened demand
outlook. China auto sales dropped 42% in the first quarter of 2020,
according to the China Association of Automobile Manufacturers.
ZhengTong has 20 stores in Hubei province, which has been heavily
affected by the coronavirus. These stores accounted for 14.2% of
its total stores in China at the end of June 2019.

ZhengTong's leverage, as measured by adjusted total debt to EBITDA,
increased to about 6.6x in 2019 from 5.9x in 2018. Moody's expects
the company's leverage to stay above 7.0x in the next 12-18
months.

The impact is partially mitigated by ZhengTong's resilient
after-sales services business, which generates recurring revenue
with high margins. This segment generated gross profits of RMB2.1
billion in 2019, up 6.7% year over year and accounting for roughly
47% of total gross profits for the same period.

ZhengTong's B3 corporate family rating continues to reflect the
company's sizable operations in China's fast-growing luxury car
dealership market, its large network, wide geographic coverage, the
diversity of its brand offering and the high contribution of its
after-sales business. However, the rating is constrained by its
high funding needs and weak liquidity.

ZhengTong's liquidity is weak. ZhengTong generally relies heavily
on short-term financing, but has so far been able to rollover this
short-term debt. At the end of 2019, the company had reported
unrestricted cash of RMB1.5 billion and restricted cash of
RMB2.1billion, with RMB17.5 billion of reported debt due in the
next 12 months.

Moody's expects that the company will be able to continue rolling
over its debt, given its profitable operations, strong market
position and inventory of branded cars. The company also has a
track record of accessing diversified funding channels, including
bank loans, commercial paper, syndicated loans, auto OEM financing
and funding through the interbank market.

ZhengTong's issuance of a USD173 million bond in the first quarter
of 2020 has also improved its maturity profile.

In addition, its strategic relationships with automakers and highly
liquid working capital provide strong buffers against its liquidity
needs. Moreover, it can access public equity funding via ZhengTong
and its subsidiary, Shanghai Dongzheng Automotive Finance Co.,
Ltd's, listings in Hong Kong if needed.

The senior unsecured bond rating on the proposed USD notes is
unaffected by subordination to claims at the operating company
level, because such claims are not material, based on Moody's
expectation that the majority of the claims will remain at the
holding company level.

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

Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety.

In terms of governance risk, the company's ownership is
concentrated in its key shareholder, who held a 56.4% stake at 30
June 2019. In addition, only a minority of its board comprises of
independent directors. These concerns are partly mitigated by the
company's listed status.

In terms of financial policy, the company relies on debt-funded
growth, which is partially mitigated by its improving non-debt
funding channel through SDAFC's listing.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

Moody's could change the outlook to stable if ZhengTong (1)
exhibits stable operations, (2) strengthens its liquidity profile,
and (3) sustains its debt leverage below 7.5x on a sustained
basis.

Moody's could downgrade the ratings if ZhengTong's (1) business
profile weakens materially, (2) liquidity position or funding
access deteriorates, or (4) interest coverage — as measured by
EBITDA/interest - falls below 2.0x or leverage rises above 7.5x, on
a sustained basis.

The principal methodology used in these ratings was Retail Industry
published in May 2018.

Incorporated in 1999, China ZhengTong Auto Services Holdings Ltd.
is one of the leading players in the luxury car dealership market
in China. Headquartered in Beijing, its operation encompassed 135
dealership stores in 41 cities across 17 provinces at the end of
2019. The company mainly focuses on luxury and ultra-luxury brands.
ZhengTong's shares listed on the Hong Kong Stock Exchange in
December 2010. Mr. Wang and his family owned 56.4% of the company
at the end of June 2019.

HARTFORD GREAT: Has $1.5-Mil. Net Loss for Quarter Ended Jan. 31
----------------------------------------------------------------
Hartford Great Health Corp. filed its quarterly report on Form
10-Q, disclosing a net loss of $1,458,993 on $25,684 of service
revenues for the three months ended Jan. 31, 2020, compared to a
net loss of $155,187 on $0 of service revenues for the same period
in 2019.

At Jan. 31, 2020, the Company had total assets of $6,276,190, total
liabilities of $6,979,070, and $702,880 in total stockholders'
deficit.

Hartford Great Health Corp. has incurred losses since inception,
resulting in an accumulated deficit of $2,401,305 and $916,816 as
of January 31, 2020 and July 31, 2019, respectively. The Company's
operation provided cash flow of $4,755 for the six months ended
January 31, 2020 and negative cash flow of $80,779 for the six
months ended January 31, 2019. These conditions raise substantial
doubt about the ability of Hartford Great Health Corp. to continue
as a going concern.

Chief Executive Officer Lianyue Song said, "In view of these
matters, continuation as a going concern is dependent upon several
factors, including the availability of debt or equity funding upon
terms and conditions acceptable to Hartford Great Health Corp., and
ultimately achieving profitable operations. Management believes
that Hartford Great Health Corp.'s business plan provides it with
an opportunity to continue as a going concern. However, management
cannot provide assurance that Hartford Great Health Corp. will meet
its objectives and be able to continue in operation."

A copy of the Form 10-Q is available at:

                       https://is.gd/G8pK2o

Hartford Great Health Corp., through its subsidiaries, provides
hospitality housing and travel agency services. It operates a
vacation hotel in Hangzhou, China. The company was formerly known
as PhotoAmigo, Inc. and changed its name to Hartford Great Health
Corp. in August 2018. Hartford Great Health Corp. was founded in
2008 and is based in Rosemead, California.

MEINIAN ONEHEALTH: Fitch Cuts LT IDR & Sr. Unsec. Rating to BB-
---------------------------------------------------------------
Fitch Ratings has downgraded China-based preventive health
examination services provider Meinian Onehealth Healthcare Holdings
Co., Ltd.'s Long-Term Issuer Default Rating and senior unsecured
rating to 'BB-' from 'BB'. The Outlook is Stable.

Fitch has also downgraded the rating on Meinian's USD200 million
7.75% senior unsecured notes due April 2021 to 'BB-' from 'BB'. The
notes were issued by Mei Nian Investment Limited.

The downgrade takes into account Fitch's expectation that Meinian's
leverage will remain high due to persistent negative free cash flow
and weak FFO fixed-charge coverage. Revenue increased by 1% in
2019, much slower than the 35% in 2018 and its forecast of 13%, due
to a decrease in 4Q20. Although capital intensity in 2019 fell
compared to 2018, the weaker profitability caused FFO adjusted net
leverage to rise to 4.7x in 2019 from 3.8x in 2018.

Fitch expects Meinian to slow network expansion and focus on
consolidating and improving the profitability of existing medical
centres in the medium term. Capex related to expansion will
decrease as a result, but free cash flow will likely remain
negative in the next two years due to investments in other areas,
such as upgrading IT systems, and a gradual recovery in
profitability.

KEY RATING DRIVERS

Weaker Financial Profile: Fitch expects Meinian's FFO fixed charge
coverage to remain low at around 2x and deleveraging will be
unlikely with continued negative FCF. Fitch expects Meinian's shift
away from aggressive expansion and towards higher efficiency to
result in a more conservative financial policy. Fitch expects
EBITDA to decline in 2020, partly due to the short-term effects
from the coronavirus outbreak, but recent changes in strategy add
to the uncertainty of cash flow generation. Therefore, FFO adjusted
net leverage is likely to remain between 4x and 5x in 2020-2021.

Lower Capex: Fitch expects more conservative network expansion to
decrease acquisition-related capex, which should narrow the
negative FCF. Fitch-defined capex includes minority investments in
new centres and investments to increase its stakes in minority-held
centres to majority-held because Fitch believes these are crucial
to Meinian's growth.

The company's total capex declined to CNY2.2 billion in 2019 from
CNY3.0 billion in 2018 due to the decrease in investments for
medical centres. Fitch expects the company to continue investing in
IT systems and to upgrade medical equipment to enhance service
quality and stay competitive. Fitch estimates capex to fall to
about CNY1.7 billion a year in 2020 and 2021.

Lower Utilisation Pressures Profitability: Fitch expects the switch
to focus on service quality to weigh on utilisation in the short
term due to controls on customer numbers and the loss of
price-sensitive individual customers. Utilisation is key for
profitability as a large proportion of costs, such as rental and
staff costs, are fixed. Individual customers contribute to
utilisation as they have more flexibility in their appointments
than corporate customers, who tend to complete their check-ups
towards year end.

Fitch expects Meinian to face challenges in acquiring high-quality
individual customers who are willing to pay more for better service
as these customers have more choices and may be reluctant to switch
providers. Revenue contribution from individual customers decreased
to 22% of total revenue in 2019 from 25% in 2018.

Coronavirus Impact: Meinian's business operation was interrupted
significantly by the coronavirus outbreak. The majority of its
centres were closed in 1Q20, leading to a decline in revenue of
more than 50%. Most of the medical centers resumed normal
operations from April 2020. Fitch expects full-year revenue to
decrease slightly, assuming a strong recovery in 3Q and 4Q.

Alibaba Plays a Strategic Role: Fitch expects more stringent
internal controls to support the company's sustainable growth after
Alibaba Group Holding Limited (A+/Stable) became a strategic
investor in November 2019. In addition, cooperation with Alibaba in
e-commerce can help Meinian expand its individual-customer base.
For example, Meinian can use Alibaba's online platforms to divert
traffic to its medical centres and promote its check-up packages.
Alibaba will also cooperate with Meinian on IT system upgrades to
streamline the check-up process and provide comprehensive pre and
post check-up services.

Market Position Maintained: Despite slower revenue growth, Fitch
expects Meinian to maintain its market leadership as the gap with
the next player is significant. Meinian has been the country's
largest private medical-examination service provider for the past
few years and solidified its market position with the acquisition
of Ciming Health Checkup Management Group Co., Ltd. Fitch expects
higher demand for medical examinations due to rising health
awareness, which supports Meinian's growth in the long run.

DERIVATION SUMMARY

Meinian's market leadership in China's private health check-up
market and stable customer base generally compare favourably
against peers and balance its financial profile, which is weak
relative to peers rated in the 'BB' range. There are no rated peers
in this market, but Fitch benchmarks Meinian against retail
companies that also use leased operating premises, although Fitch
recognizes the private health check-up market in China is more
stable and has higher growth potential.

Meinian has a stronger business profile than China-based 361
Degrees International Limited (B+/Stable) as Meinian is the leader
in its market while 361 Degrees ranks lower in the sportswear
market. Although the sportswear market is also likely to grow in
China, Fitch thinks the less fragmented health check-up market and
a strong base of corporate customers provide Meinian with more
stable traffic and growth prospects. Meinian's stronger business
profile justifies a rating above 361 Degrees despite a moderately
weak financial profile due to rental expenses forming a big share
of costs.

Meinian's credit profile is more comparable with those of global
retail issuers, such as Levi Strauss & Co. (Levi, BB/Negative) as
rental expenses are a large part of costs. Meinian has a smaller
operational scale in terms of EBITDA than Levi and a weaker
financial profile with higher adjusted leverage, lower fixed charge
coverage and negative free cash flow, which justifies a rating
below Levi.

KEY ASSUMPTIONS

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

- Revenue to decrease in 2020, before recovering to a high
single-digit growth in 2023

- EBITDA margin of 19%-20% in 2020-2023

- Rental expense to revenue ratio of 10%-11% in 2020-2023

- Capex of CNY1.7billion per year in 2020-2023, including initial
minority investments in new medical centres and investments to
increase its stake in minority-held centres to majority-held

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

  - FFO adjusted net leverage below 4x for a sustained period
(2019: 4.7x, 2020 forecast: 5.0x)

  - FFO fixed charge coverage above 2.2x for a sustained period
(2019: 1.8x, 2020 forecast: 1.8x)

  - Free cash flow trending towards neutral

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

  - FFO adjusted net leverage above 5x for a sustained period

  - FFO fixed charge coverage below 1.8x for a sustained period

  - Widening negative free cash flow

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

Reliance on Refinancing: As of end-March 2020, Meinian's available
cash on hand of CNY3.3 billion plus unused bank facilities of
CNY0.3 billion barely covered its short-term debt of CNY3.7
billion. The company is reliant on short-term financing with
short-term debt accounting for 54% of total debt at end-March 2020.
Fitch expects Meinian to be able to roll over its bank loans given
seasonality of the business with improved cash flow generation
later in the year and strengthened access to capital following
Alibaba's investment. The company plans to raise up to USD300
million through offshore US-dollar bond issuance to repay its
existing USD200 million bond due April 2021 and for general working
capital purposes.

SUMMARY OF FINANCIAL ADJUSTMENTS

Capex includes acquiring minority stakes in new centres and
increasing investments in minority-interest centres to hold a
controlling interest.

Proceeds from private equity placement not intended for debt
repayment is treated as restricted cash.

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).

ZHENRO PROPERTIES: Fitch Rates New USD Senior Notes 'B+'
--------------------------------------------------------
Fitch Ratings has assigned Zhenro Properties Group Limited's
(B+/Stable) proposed US dollar senior notes a 'B+' rating, with a
Recovery Rating of 'RR4'.

The notes are rated at the same level as Zhenro's senior unsecured
rating because they constitute its direct and senior unsecured
obligations. Zhenro intends to use net proceeds from the issue to
primarily refinance its existing debt.

Zhenro's ratings are supported by the company repaying its debt
through equity issuance and internally generated cash flow, which
Fitch believes has reduced its leverage - defined by net
debt/adjusted inventory, including proportional consolidation of
joint ventures and associates - to below 50% by end-2019, from 55%
in 1H19. Fitch believes Zhenro can sustain leverage at around 50%
as it pursues a less aggressive growth strategy than in the past
two years.

Zhenro's Issuer Default Rating is supported by its high-quality and
diverse land bank, healthy contracted sales growth, sales churn and
good margin. The rating is constrained by a small land bank, which
creates some pressure to replenish land and limits room for
significant deleveraging.

KEY RATING DRIVERS

Leverage Profile to be Maintained: Fitch believes Zhenro can
sustain a leverage profile commensurate with a 'B+' rating.
Leverage increased to 55% in 1H19, but subsequent debt repayment
from equity issuance, reduction in land acquisition and internal
cash generation has reduced leverage to below 50%. Zhenro spent
CNY24.8 billion on land acquisitions in 2019, which represented
around 37% of 2019's attributable contracted sales. Chinese
homebuilders have been more active in acquiring land in Tier 2
cities during 2019, resulting in higher land premiums.

More Balanced Capital Structure: The cash/short-term debt ratio was
stable at 1.8x in 2019. Fitch also expects funding costs to
continue to fall, as more expensive trust loans are replaced with
lower-cost financing. Zhenro has diversified its funding sources
since its IPO in 2018. The percentage of unsecured borrowings
increased to 45% of total debt in 2019, from 34% in 2018. The
company continues to replace onshore non-bank borrowings with
offshore funding.

High-Quality Land Bank: Zhenro's land bank is focused on Tier 2
cities and is diversified across China's eastern, northern,
south-eastern, western and central regions. No single city accounts
for a significant portion to total sales, avoiding concentration
and regional-policy risks. This allowed Zhenro to achieve robust
attributable contracted sales growth in the previous three years,
with attributable sales reaching CNY66.7 billion in 2019. The
average selling price dropped to CNY15,488/square metre (sq m),
from CNY16,765/sq m in 2018, due to a lower proportion of sales
from Tier 2 cities, but was still higher than that of most 'B+'
category peers.

Relatively Small Land Bank: Fitch estimates Zhenro's unsold
attributable land bank at end-1H19 was sufficient for around 2
years of development. The company relies on continuous land
acquisition to sustain contracted sales growth. This is likely to
drive Zhenro to replenish land bank at market prices and could
limit its ability to keep land costs low, especially as it buys
more land parcels in Tier 2 cities, where there is more intense
competition among developers. Fitch forecasts Zhenro will keep its
land-bank life at current levels, as Zhenro believes a larger land
bank would limit its flexibility to manage policy uncertainties.

Zhenro acquired new land at an average cost of CNY5,968/sq m in
2019, 24% higher than in 2018. Land costs accounted for about 39%
of contracted sales ASP. Fitch expects the EBITDA margin to
gradually edge down from the 2018 level, following the same trend
as most other Chinese homebuilders.

Significant Minority Shareholders: Total non-controlling interest
in Zhenro's balance sheet increased to CNY13.2 billion in 2019,
from CNY8 billion in 2018, due to minority shareholders completing
capital injections for projects acquired in 2018. Total
non-controlling interest was 42.5% of total equity in 2019. Fitch
expects non-controlling interest to stay stable, as Zhenro sought
higher shareholdings in its land acquisitions during 2019.

DERIVATION SUMMARY

Zhenro's leverage of 50%-55% and relatively small land bank
constrains its rating to the 'B+' category, while its sustainable
contracted sales scale and diverse and quality land bank is
comparable with those of 'BB-' peers. Zhenro's unsold attributable
land bank at end-2019 was equivalent to around 2 years of GFA sold,
which is similar to that of Zhongliang Holdings Group Company
Limited (B+/Stable), but shorter than that of fast-churn peers.

Zhenro's leverage is at the higher-end of 'B+' peers, but is
complemented by a high-quality land bank, which drives its
contracted sales scale and satisfactory margin. Attributable
contracted sales of CNY67 billion and an EBITDA margin of 22% in
2019 were comparable with those of 'BB-' peers, such as Yuzhou
Properties Company Limited (BB-/Stable).

KEY ASSUMPTIONS

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

  - Attributable contracted sales of CNY62 billion-85 billion a
year in 2019-2022 (2019: CNY67 billion)

  - 0%-2% rise in ASP each year in 2020-2022 (2019: CNY15,488)

  - Annual land premium to be maintained at around 2.5 years of
land-bank life, accounting for about 40%-55% of attributable
contracted sales (2019: 37%)

RATING SENSITIVITIES

Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:

  - Leverage (net debt/adjusted inventory) sustained below 45%

  - EBITDA margin, after adding back capitalised interest in cost
of goods sold, above 25% for a sustained period

Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:

  - Leverage (net debt/adjusted inventory) above 55% for a
sustained period

  - EBITDA margin, after adding back capitalised interest in cost
of goods sold, below 20% 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

Sufficient Liquidity: Zhenro had unrestricted cash of
CNY28.4billion, pledged deposits of CNY1.8billion, restricted cash
of CNY5.1 billion, undrawn bank credit facilities and the unused
onshore and offshore bond issuance quota for refinancing at
end-2019, which were enough to cover short-term borrowings of
CNY20.0 billion. Zhenro in 2H19 raised CNY2.8 billion from the debt
and equity capital markets to repay debt and for refinancing
purposes.

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).



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

A. S. BETGERI: CRISIL Keeps B+ INR3cr Debt Rating in Not Coop.
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of A. S. Betgeri (ASB)
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Bank Guarantee        5          CRISIL A4 (ISSUER NOT
                                    COOPERATING)

   Cash Credit           3          CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING)

CRISIL has been consistently following up with ASB for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 ASB, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ASB 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 ASB continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating'.

Set up in 1995 by Mr. A S Betgeri as a proprietorship firm, ASB
undertakes civil construction works of buildings primarily for the
Karnataka Public Works Department.

ACCORD LIFE: ICRA Keeps 'D' INR50cr Loan Rating in Not Cooperating
------------------------------------------------------------------
ICRA said ratings for the INR50.00 crore bank facilities of Accord
Life continue to remain under Issuer Not Cooperating category. The
rating is denoted as [ICRA]D ISSUER NOT COOPERATING.

                   Amount
   Facilities    (INR crore)    Ratings
   ----------    -----------    -------
   Fund based-        50.0      [ICRA]D ISSUER NOT COOPERATING;
   Term Loan                    Rating remain under 'Issuer Not
                                Cooperating' category

Rationale

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

Accord Life was incorporated in 2014 with the aim of setting up a
manufacturing facility for oncology drugs from its facility built
over an area of 11 acres in SIPCOT, Chennai. The said manufacturing
facility would have a capacity to manufacture 4.5 crore tablets per
annum, 1.8 crore capsules, 37 lakh lyophilized vials and 18 lakh
liquid vials. The facility will also include a Research and
Development unit.

Apart from this company promoters have ownership interests in
liquor manufacturing through A.M.Breweries Private Limited
([ICRA]BB- (Stable) ISSUER NOT COOPERATING/[ICRA]A4 ISSUER NOT
COOPERATING); hotels through J Hotels Private Limited and Jam
Hotels and Resorts Private Limited. The promoters are also
management trustees in Sri Lakshmi Ammal Educational Trust which
runs engineering, medical and arts colleges in Tamil Nadu.

ALLIED ENERGY: ICRA Keeps 'D' Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA said ratings for the INR34.00 crore bank facilities of Allied
Energy Systems Private Limited continue to remain under Issuer Not
Cooperating category. The rating is denoted as [ICRA]D ISSUER NOT
COOPERATING.

                   Amount
   Facilities    (INR crore)    Ratings
   ----------    -----------    -------
   Cash Credit        8.00      [ICRA]D ISSUER NOT COOPERATING;
                                Rating ccontinues to remain under
                                the 'Issuer Not Cooperating'
                                category

   Unallocated       16.50      [ICRA]D ISSUER NOT COOPERATING;
                                Rating continues to remain under
                                the 'Issuer Not Cooperating'
                                category

   Non-fund Based     9.50      [ICRA]D ISSUER NOT COOPERATING;
                                Rating continues to remain under
                                the 'Issuer Not Cooperating'
                                category

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

Incorporated in 2005, Allied Energy Systems Private Limited is
primarily engaged in designing fabrication and erection of
Deaerators for boilers which are used in industries like Chemicals,
Power, Petrochem, Fertilizer, Sugar, Paper etc. The company is also
engaged in manufacturing of steel fabricated products like Pressure
Vessels, Heat Exchangers, and Evaporators etc. The company has two
manufacturing facilities in Bhiwadi, Rajasthan.

ANAS MOTORS: CRISIL Lowers Rating on INR6.5cr Loans to B+
---------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Anas Motors
Private Limited (AMPL) to 'CRISIL B+/Stable Issuer Not Cooperating'
from 'CRISIL BB-/Stable Issuer Not Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Overdraft             6.37       CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB-/Stable ISSUER NOT
                                    COOPERATING')

   Proposed Long Term    0.13       CRISIL B+/Stable (ISSUER NOT
   Bank Loan Facility               COOPERATING; Revised from
                                    'CRISIL BB-/Stable ISSUER NOT
                                    COOPERATING')

CRISIL has been consistently following up with AMPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 AMPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on AMPL 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 AMPL Revised to 'CRISIL B+/Stable Issuer Not
Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'.

AMPL, incorporated in 1998, is promoted by Ankleshwar,
Gujarat-based Mr. Salahuddin Baig. The company is an authorized
dealer for HML, and has a showroom in Ankleshwar.

ASHCONS INFRA: CRISIL Lowers Rating on INR10cr Loan to B+
---------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Ashcons
Infrastructure Private Limited (AIPL) to 'CRISIL B+/Stable/CRISIL
A4 Issuer Not Cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer
Not Cooperating'.

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

   Cash Credit/          10        CRISIL B+/Stable (ISSUER NOT
   Overdraft facility              COOPERATING; Revised from
                                   'CRISIL BB/Stable ISSUER NOT
                                   COOPERATING')

   Long Term Loan        4.5       CRISIL B+/Stable (ISSUER NOT
                                   COOPERATING; Revised from
                                   'CRISIL BB/Stable ISSUER NOT
                                   COOPERATING')

CRISIL has been consistently following up with AIPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 AIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on AIPL 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 AIPL revised to 'CRISIL B+/Stable/CRISIL A4 Issuer
Not Cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer Not
Cooperating'.

Established in 1990 as a proprietorship concern of Mr Jayaram Rai,
Ashish Construction was engaged in civil construction activities in
Raigad, Maharashtra. It was reconstituted as a private limited
company on April 1, 2013 and accordingly the name was changed to
AIPL. The company is a class 1-A contractor for undertaking civil
construction and turnkey projects for roads, highways and urban
infrastructure (water, sanitation and sewerage, bridges,
beautification projects and commercial building and complexes)
mainly for government agencies in Maharashtra. The operations are
managed by Mr Ashish Rai.

ATLANTIS BUILDERS: CRISIL Keeps B INR20cr Loan Rating in Not Coop.
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Atlantis Builders
India Private Limited (ABIPL) continues to be 'CRISIL B/Stable
Issuer Not Cooperating'.

                      Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Working Capital       20        CRISIL B/Stable (ISSUER NOT
   Demand Loan                     COOPERATING)

CRISIL has been consistently following up with ABIPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 ABIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ABIPL 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 ABIPL continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.

ABIPL is a Bengaluru based real estate company started in 2012 by
Mr Venkataswamy Raju and his family. It develops residential
apartments in Bengaluru.


B SATYANARAYANA: CRISIL Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of B Satyanarayana Reddy
(BSNR) continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.

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

   Cash Credit           2          CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING)

   Proposed Long Term    5.5        CRISIL B+/Stable (ISSUER NOT
   Bank Loan Facility               COOPERATING)

CRISIL has been consistently following up with BSNR for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 BSNR, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on BSNR 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 BSNR continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating'.

B Satyanarayana Redddy (BSNR), established in 2003 as a
proprietorship concern is engaged in civil construction work (Roads
and Bridges), majorly For Department of Rural development. The
business activity of firm is confined to Krishna District (A.P) and
Khammam District ( Telangana).

BAER SHOES: CRISIL Downgrades Rating on INR4.65cr Loan to B+
------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Baer Shoes
India Private Limited (BSIPL) to 'CRISIL B+/Stable/CRISIL A4 Issuer
Not Cooperating' from 'CRISIL BB+/Stable/CRISIL A4+ Issuer Not
Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Export Packing        2.50       CRISIL A4 (ISSUER NOT
   Credit                           COOPERATING; Revised from
                                    'CRISIL A4+ ISSUER NOT
                                    COOPERATING')

   Proposed Long Term    4.65       CRISIL B+/Stable (ISSUER NOT
   Bank Loan Facility               COOPERATING; Revised from
                                    'CRISIL BB+/Stable ISSUER NOT
                                    COOPERATING')

   Term Loan             1.85       CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB+/Stable ISSUER NOT
                                    COOPERATING')

CRISIL has been consistently following up with BSIPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 BSIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on BSIPL 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 BSIPL revised to 'CRISIL B+/Stable/CRISIL A4 Issuer
Not Cooperating' from 'CRISIL BB+/Stable/CRISIL A4+ Issuer Not
Cooperating'.

A 95% subsidiary of Bar GmBH, BSIPL (established in 1995 in
Chennai, Tamil Nadu) manufactures and exports shoes to its parent.

BANSAL BROTHERS: CRISIL Lowers Rating on INR12cr Loan to B+
-----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Bansal
Brothers (Delhi) (BBRS) to 'CRISIL B+/Stable Issuer Not
Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Overdraft              12        CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB+/Stable ISSUER NOT
                                    COOPERATING')

CRISIL has been consistently following up with BBRS for obtaining
information through letters and emails dated November 30, 2019 and
April 11, 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 BBRS, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on BBRS 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 BBRS Revised to 'CRISIL B+/Stable Issuer Not
Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'.

Set up in 1953, BBRS is promoted by Mr Yash Pal Bansal, Mr Ravi
Lochan Gupta, and Mr. Bharat Bansal. It trades in cold-rolled (CR)
and hot-rolled (HR) steel coils.

BASUDHA UDYOG: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Basudha Udyog Private
Limited (BUPL) continues to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            15        CRISIL D (ISSUER NOT
                                    COOPERATING)


   Letter of Credit       60        CRISIL D (ISSUER NOT
                                    COOPERATING)

   Term Loan              34        CRISIL D (ISSUER NOT
                                    COOPERATING)

CRISIL has been consistently following up with BUPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 BUPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on BUPL 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 BUPL continues to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.

BUPL, incorporated in 1992, manufactures low ash metallurgical
(LAM) coke and operates a power plant near Chennai. Its operations
are managed by promoter-director Mr Sanjay Kumar Poddar.

BRITISH BIOLOGICALS: CRISIL Lowers Rating on INR15cr Loan to B+
---------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of British
Biologicals (BB) to 'CRISIL B+/Stable Issuer Not Cooperating' from
'CRISIL BB+/Stable Issuer Not Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            15        CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB+/Stable ISSUER NOT
                                    COOPERATING')

CRISIL has been consistently following up with BB for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 BB, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on BB 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 BB Revised to 'CRISIL B+/Stable Issuer Not
Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'.

British Biologicals, is a proprietorship firm founded in 1988 by
Mr. V. S. Reddy. It offers a wide range of nutritional supplements.
The firm's manufacturing facility is located in Bangalore.

CAPITAL ELECTRICALS: CRISIL Keeps B INR7cr Loan Rating in Not Coop.
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Capital Electricals
Private Limited (CEPL; part of the Capital group) continues to be
'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Bank Guarantee         7         CRISIL A4 (ISSUER NOT
                                    COOPERATING)

   Cash Credit            7         CRISIL B/Stable (ISSUER NOT
                                    COOPERATING)

   Letter of Credit       3         CRISIL A4 (ISSUER NOT
                                    COOPERATING)

   Proposed Short Term   10         CRISIL A4 (ISSUER NOT
   Bank Loan Facility               COOPERATING)

CRISIL has been consistently following up with CEPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 CEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CEPL 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 CEPL continues to be 'CRISIL B/Stable/CRISIL A4
Issuer Not Cooperating'.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of CEL, Capital Power Systems Ltd (CPS),
and Capital Power Infrastructure Ltd (CPIL). This is because the
three companies, together referred to as the Capital group, have a
common management and are engaged in similar businesses

CEPL, formerly known as Mayur Electrical Industries Pvt Ltd, was
incorporated in 1994, promoted by Mr Pawan Kumar Bansal. The
company manufactures electric wires and cables. Its plant is in
Noida, Uttar Pradesh.

CPS was incorporated in 1988, promoted by Mr Bansal, Mr Dinesh
Chand Gupta, and Mr Mahesh Kumar Gupta. The company manufactures
single-phase and three-phase electronic meters, which it primarily
supplies to SEBs. Its manufacturing unit is in Noida.

CPIL, incorporated in 2008 and promoted by Mr Bansal, undertakes
EPC (engineering, procurement, and construction) contracting. It
works for SEBs and state power utilities for erecting substations,
and setting up transformers, poles, feeders, and cables.

CDP (INDIA): CRISIL Downgrades Rating on INR10cr Credit to B+
-------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of CDP (India)
Private Limited (CDP) to 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer Not
Cooperating'.

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

   Buyer's Credit        10         CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB/Stable ISSUER NOT
                                    COOPERATING')

   Cash Credit            5         CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB/Stable ISSUER NOT
                                    COOPERATING')

CRISIL has been consistently following up with CDP for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 CDP, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CDP 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 CDP revised to 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer Not
Cooperating'.

Incorporated in 1991, Mumbai-based CDP is promoted by Mr Nikesh
Sakaria. The company is engaged in IT integration and business
software solutions.

DEEPAK INTERNATIONAL: CRISIL Lowers Rating on INR7cr Loan to B+
---------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Deepak
International Limited (DIL) to 'CRISIL B+/Stable/CRISIL A4 Issuer
Not Cooperating' from 'CRISIL BB+/Stable/CRISIL A4+ Issuer Not
Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Bank Guarantee         4         CRISIL A4 (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL A4+ ISSUER NOT
                                    COOPERATING')

   Cash Credit            7         CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB+/Stable ISSUER NOT
                                    COOPERATING')

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

   Packing Credit        10         CRISIL A4 (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL A4+ ISSUER NOT
                                    COOPERATING')

   Post Shipment         10         CRISIL A4 (ISSUER NOT
   Credit                           COOPERATING; Revised from
                                    'CRISIL A4+ ISSUER NOT
                                    COOPERATING')

   Proposed Long Term     1.65      CRISIL B+/Stable (ISSUER NOT
   Bank Loan Facility               COOPERATING; Revised from
                                    'CRISIL BB+/Stable ISSUER NOT
                                    COOPERATING')

   Term Loan              3.35      CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB+/Stable ISSUER NOT
                                    COOPERATING')

CRISIL has been consistently following up with DIL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 DIL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DIL 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 DIL revised to 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating' from 'CRISIL BB+/Stable/CRISIL A4+ Issuer Not
Cooperating'.

Established by Mr Deepinder Singh Ranger in 1976, DIL exports
bicycles and bicycle components as well as tyres and tubes for
bicycles apart from batteries, paper, candies, food items, and
diesel engines. Furthermore, it manufactures batteries for Amaron
and V-Guard brands in the domestic market.

DELHI INT'L AIRPORT: Fitch Affirms BB+ IDR, Outlook Negative
------------------------------------------------------------
Fitch Ratings has affirmed Delhi International Airport Limited's
Long-Term Issuer Default Rating and its bond issue ratings at 'BB+'
with a Negative Outlook.

RATING RATIONALE

The Negative Outlook reflects the ongoing uncertainty over the
timing and duration of the traffic shock and recovery triggered by
the coronavirus pandemic. The Indian government imposed a
nationwide lockdown on March 24, which will continue till May 17,
according to a recent government directive. DIAL's operations are
limited to cargo and evacuation flights under these circumstances.
A prolonged pandemic and nationwide lockdown, and further
deterioration in the economy will reduce air passenger traffic,
leading to lower aeronautical and non-aeronautical revenue.

The affirmation of the rating reflects its expectation that DIAL
has sufficient financial flexibility to weather the difficulties,
including rationalisation of operating expense, deferment of its
capex budget and strong liquidity to meet near-term debt servicing.
Fitch currently assumes a recovery from the traffic and revenue
shock in the financial year ending March 2022 (FY22) as DIAL
operates a strategic airport serving the country's national capital
region and benefits from a high share of domestic traffic, with
greater resilience. However, Fitch will revise its rating case
accordingly if the severity and duration of the outbreak are worse
than its current expectations.

KEY RATING DRIVERS

Coronavirus, Travel Restrictions Affecting Demand: Global travel
restrictions and the nationwide lockdown in India mean DIAL has had
no commercial-passenger flights since April, leaving only cargo and
evacuation flights. This significantly reduces its aeronautical and
non-aeronautical revenue although DIAL continues to receive monthly
rental income from concessionaires for commercial-property
development.

Sharper Traffic Decline in 2020: Fitch assumes international and
domestic traffic will decline by 80% and 60%, respectively, in
2Q2020 under its revised rating case, and gradually recover from
3Q2020. Fitch assumes total passenger traffic will fall 26% in FY21
but recover to a pre-pandemic level in FY22. Its sharper decline
assumption in FY21 reflects the impact of a longer lockdown than
previously anticipated in its rating action on April 1, 2020.
Domestic traffic contributes about 75% of DIAL's passenger traffic
and Fitch expects it to rebound quicker than international traffic.
its rating case generates average leverage, measured by net
debt/EBITDA, of 8.0x with a maximum of 10.1x in FY21.

Defensive Measures Provide Flexibility: DIAL has implemented
various measures to reduce its operating expense including
consolidation of terminal operations, reduction of utility costs,
and rationalisation of manpower and consultants. Management
indicates operational costs could be contained at a minimum of
about INR9 billion for FY20-FY21. DIAL has also deferred some of
its capex originally budgeted for FY21 In light of the reduced cash
flow in the near term. Fitch assumes total capex of INR79 billion
in FY21-FY24, in line with management guidance, of which INR20
billion will be spent in FY21 and INR23 billion in FY22.

Solid Liquidity: DIAL had total cash and a bank balance of about
INR40 billion in early May 2020. Fitch believes the company has
sufficient liquidity to meet its operating expense and debt
payments. DIAL has no major debt maturities until 2022.

Sensitivity Case: Fitch has also run a sensitivity case with the
assumption traffic will recover to pre-pandemic levels only in
FY25. Its sensitivity case generates average leverage of 9.5x with
a maximum of 12.1x.

Risk Assessment: Fitch assesses DIAL's volume risk as 'Stronger',
price risk as 'Midrange', infrastructure development as 'Midrange'
and debt structure as 'Midrange'. For more information, see the
last full review Fitch Publishes Delhi Airport's First-Time 'BB+'
Rating; Outlook Stable, published February 10, 2020.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

  - Positive rating action is not likely in the near term

  - A return to a Stable Outlook could be possible, and the rating
affirmed, if Fitch sees sustained recovery in traffic and revenue
due to the easing of the pandemic measures, resulting in normal air
traffic patterns or the adaption of strategies that convincingly
stabilises finances

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

  - Traffic or revenue underperformance, or cost overruns in capex
execution, leading to the rating-case net debt/EBITDA remaining
above 8.0x for a sustained period

  - Further credit erosion of major air carriers or payment
delinquencies hurting the finances of the airport

  - Deterioration in airport liquidity levels for a sustained
period

  - Renegotiation of expansion contracts and higher contract prices
as a result of contractors' bankruptcy

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Public Finance 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 three 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.

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).

Delhi International Airport Limited

  - LT IDR BB+; Affirmed

Delhi International Airport Limited/bond/note/1

  - LT BB+; Affirmed

APPLICABLE CRITERIA

Infrastructure and Project Finance Rating Criteria (pub. 24 Mar
2020) (including rating assumption sensitivity) Airports Rating
Criteria (pub. 24 Mar 2020) (including rating assumption
sensitivity).

DHANBAD ROCKWOOL: CRISIL Lowers Rating on INR4.5cr Loan to B+
-------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Dhanbad
Rockwool Insulation Private Limited (DRIPL) to 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating' from 'CRISIL
BB/Stable/CRISIL A4+ Issuer Not Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Bank Guarantee        1.5        CRISIL A4 (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL A4+ ISSUER NOT
                                    COOPERATING')

   Cash Credit           4.5        CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB/Stable ISSUER NOT
                                    COOPERATING')

   Term Loan             1.25       CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB/Stable ISSUER NOT
                                    COOPERATING')

CRISIL has been consistently following up with DRIPL for obtaining
information through letters and emails dated
November 30, 2019 and April 11, 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 DRIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DRIPL 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 DRIPL revised to 'CRISIL B+/Stable/CRISIL A4 Issuer
Not Cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer Not
Cooperating'.

Established in 2011 and based in Dhanbad (Jharkhand), DRIPL
manufactures rockwool thermal insulation products such as lightly
resin bonded mattresses, resin bonded slabs, loose mineral wool,
sectional pipe insulation, and mineral wool granules.

DHANYA STEEL: CRISIL Keeps D INR13cr Loan Rating in Not Cooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Dhanya Steel
Industries Private Limited (DSIPL; part of the Dhanya group)
continues to be 'CRISIL D Issuer Not Cooperating'.

                    Amount
   Facilities     (INR Crore)   Ratings
   ----------     -----------   -------
   Cash Credit          13      CRISIL D (ISSUER NOT COOPERATING)


CRISIL has been consistently following up with DSIPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 DSIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DSIPL 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 DSIPL continues to be 'CRISIL D Issuer Not
Cooperating'.

For arriving at the rating, CRISIL has combined the business and
financial risk profiles of DSIPL and Dhanya TMT Private Limited
(DTPL). This is because the two companies, together referred to as
the Dhanya group, are in similar lines of business and under a
common promoter group, and have significant business and financial
linkages with each other.

Established in December 2007, DSIPL manufactures ingots and
billets. The company has its manufacturing facility in Chittoor
district (Andhra Pradesh).

DOLPHIN PROMOTERS: CRISIL Keeps B+ INR19cr Loan Rating in Not Coop.
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Dolphin Promoters and
Builders (DPB) continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Long Term Loan        19         CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING)

CRISIL has been consistently following up with DPB for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 DPB, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DPB 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 DPB continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.

DPB is a partnership firm, established in August 2003. It
undertakes real estate development for residential and commercial
projects in Raipur, Chhattisgarh. The firm is currently developing
two residential projects with aggregate saleable area of about 6
lakh square feet.

DUTTA SUPPLY: CRISIL Lowers Rating on INR3.7cr Loan to B+
---------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Dutta Supply
Agency (DSA) to 'CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'
from 'CRISIL BB/Stable/CRISIL A4+ Issuer Not Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Bank Guarantee         3         CRISIL A4 (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL A4+ ISSUER NOT
                                    COOPERATING')

   Cash Credit            3.7       CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB/Stable ISSUER NOT
                                    COOPERATING')

CRISIL has been consistently following up with DSA for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 DSA, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DSA 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 DSA revised to 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer Not
Cooperating'.

DSA, a proprietorship firm established in 1991, undertakes
contracts in railway signalling and telecommunication, which
include installation of signalling devices and laying of cables.
Its operations are managed by proprietor Mr Arindam Dutta.

EASTERN PILLING: CRISIL Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Eastern Pilling and
Construction Private Limited (EPCPL) continues to be 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Bank Guarantee        10         CRISIL A4 (ISSUER NOT
                                    COOPERATING)

   Cash Credit            5         CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING)

CRISIL has been consistently following up with EPCPL for obtaining
information through letters and emails dated December 31, 2019 and
April 11, 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 EPCPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on EPCPL 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 EPCPL continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer Not Cooperating'.

EPCPL was set up by the promoter, Mr Abhay Kumar Das in 1991. The
Cuttack, Odisha-based company conducts surveys, procures raw
material as per approved designs, and completes installation of
transmission lines, including sub-station repair work, mainly for
private companies, apart from government agencies.

ECHO MOTORS: CRISIL Lowers Rating on INR11.5cr Loans to B+
----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Echo Motors
And Automobiles Private Limited (EMAPL) to 'CRISIL B+/Stable Issuer
Not Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            6.5       CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB/Stable ISSUER NOT
                                    COOPERATING')

   Proposed               5.0       CRISIL B+/Stable (ISSUER NOT
   Inventory Funding                COOPERATING; Revised from
                                    'CRISIL BB/Stable ISSUER NOT
                                    COOPERATING')

CRISIL has been consistently following up with EMAPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 EMAPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on EMAPL 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 EMAPL Revised to 'CRISIL B+/Stable Issuer Not
Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating'.

Established in January 2011 and based in Assam, EMAPL, promoted by
Mr Kumar Gaurav and his wife Ms Sarmistha Baruah, is an authorised
dealer of Action Construction Equipment Ltd (ACE; rated 'CRISIL
A+/Stable/CRISIL A1+'). Furthermore, the company is a dealer of
three-wheelers by Atul Auto Ltd (AAL; rated 'CRISIL A/Stable/CRISIL
A1').

ENAM CASTINGS: CRISIL Lowers Rating on INR6cr Loans to B+
---------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Enam Castings
Private Limited (ECPL) to 'CRISIL B+/Stable Issuer Not Cooperating'
from 'CRISIL BB-/Stable Issuer Not Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            5         CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB-/Stable ISSUER NOT
                                    COOPERATING')

   Term Loan              1         CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB-/Stable ISSUER NOT
                                    COOPERATING')

CRISIL has been consistently following up with ECPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 ECPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ECPL 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 ECPL Revised to 'CRISIL B+/Stable Issuer Not
Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'.

Incorporated in 2009, ECPL was promoted by Girase family. The
company is engaged into manufacturing of switchgear panels.

ENTEL MOTORS: CRISIL Lowers Rating on INR20cr Loans to B+
---------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Entel Motors
Private Limited (EMPL) to 'CRISIL B+/Stable Issuer Not Cooperating'
from 'CRISIL BB-/Stable Issuer Not Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            3.00      CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB-/Stable ISSUER NOT
                                    COOPERATING')

   Channel Financing      6.50      CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB-/Stable ISSUER NOT
                                    COOPERATING')

   Proposed Long Term     9.65      CRISIL B+/Stable (ISSUER NOT
   Bank Loan Facility               COOPERATING; Revised from
                                    'CRISIL BB-/Stable ISSUER NOT
                                    COOPERATING')

   Term Loan              0.85      CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB-/Stable ISSUER NOT
                                    COOPERATING')

CRISIL has been consistently following up with EMPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 EMPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on EMPL 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 EMPL Revised to 'CRISIL B+/Stable Issuer Not
Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'.

EMPL, incorporated in 1997, is an authorised dealer for MSIL for
passenger cars and for service and sale of spares in Gangtok. EMPL
has one showroom, one e-outlet, and a service center, and is
setting up its second service center. The company is owned by
Sikkim-based Ladakhi group and its operations are managed by
promoter-director Mr. Guru Tshering Ladakhi.

EZONE SECURITY: CRISIL Lowers Rating on INR8cr Cash Credit to B+
----------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of eZone Security
Solutions (India) Private Limited (eZone) to 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating' from 'CRISIL
BB/Stable/CRISIL A4+ Issuer Not Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Bank Guarantee         1         CRISIL A4 (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL A4+ ISSUER NOT
                                    COOPERATING')

   Cash Credit            8         CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB/Stable ISSUER NOT
                                    COOPERATING')

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

CRISIL has been consistently following up with eZone for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 eZone, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on eZone 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 eZone revised to 'CRISIL B+/Stable/CRISIL A4 Issuer
Not Cooperating' from 'CRISIL BB/Stable/CRISIL A4+ Issuer Not
Cooperating'.

eZONE, promoted in 2002 by the Hyderabad-based Chennupati family,
provides building management solutions across the domains of
security, automation, and fire solutions. The company provides
security and automation solutions on a turnkey basis. It started
providing maintenance and upkeep services in 2012-13 (refers to
financial year, April 1 to March 31).

GMR HYDERABAD AIRPORT: Fitch Affirms BB+ IDR, Outlook Negative
--------------------------------------------------------------
Fitch Ratings has affirmed GMR Hyderabad International Airport
Limited's Long-Term Issuer Default Rating and its bond issue
ratings at 'BB+' with a Negative Outlook.

RATING RATIONALE

The Negative Outlook reflects the ongoing uncertainty relating to
the timing and duration of the traffic shock and recovery caused by
the coronavirus pandemic. The Indian government imposed a
nationwide lockdown on March 24 until May 17, as per the latest
directive. GHIAL's operations are limited to cargo and evacuation
flights under these circumstances. A prolonged pandemic and
nationwide lockdown, and further deterioration in the economy, will
reduce air passenger traffic and lead to lower aeronautical and
non-aeronautical revenue than Fitch expects.

The affirmation of the rating reflects its expectation that GHIAL
has sufficient financial flexibility to weather the difficulties
and strong liquidity to meet near-term debt servicing. The
affirmation also reflects its expectation that leverage - measured
by net debt/EBITDA - will come down gradually as traffic recovers.
The sharp traffic decline in the financial year ending March 2021
(FY21) and the debt-funded airport expansion plan are driving the
near-term deterioration of GHIAL's credit profile, but Fitch
expects traffic will recover to a pre-pandemic level in FY22.
However, Fitch will revise its rating case accordingly if the
severity and duration of the outbreak is worse than its current
expectation.

KEY RATING DRIVERS

Coronavirus, Travel Restrictions Affecting Demand: Global travel
restrictions and the nationwide lockdown in India mean GHIAL has
had no commercial-passenger flights since April, leaving only cargo
and evacuation flights. This significantly reduces its aeronautical
and non-aeronautical revenue. GHAL continues to receive monthly
rental income from concessionaires but revenue from commercial
property development remains limited.

Leverage to Decline Gradually: Fitch assumes international and
domestic traffic will decline by 80% and 60%, respectively, in the
second quarter of 2020 under its revised rating case, and recover
gradually from the third quarter. Fitch assumes total passenger
traffic will fall 25% in FY21, but recover to a pre-pandemic level
in FY22. The sharper decline assumption in FY21 reflects the impact
of a longer lockdown period than previously expected in its rating
action on April 1. In its rating case, leverage peaks at 8.5x in
FY21 but gradually deleverages to 5.5x in FY24 and averages 5.8x
between FY20 and FY24.

Defensive Measures Provide Flexibility: GHIAL has implemented
various measures to reduce its operating expenses. Management
expects to reduce operating expenses to INR3.7billion-4.0 billion
from an annual run-rate of INR4.5 billion for its airport
operations. Management also expects the completion of the current
expansion plan to be delayed by six months to FY23. Fitch assumes a
total capex of INR60 billion for FY21-FY24, in line with management
guidance, of which INR22 billion will be spent in FY21.

Sufficient Liquidity: Fitch believes the company has sufficient
liquidity to meet its operating expenses and debt payments. GHIAL
had total cash and a bank balance of about INR22 billion in late
April 2020. The company could also draw down a banking limit for
the expansion plan.

Coronavirus Severe Downside Case: Fitch has also run a downside
sensitivity case with the assumption traffic will recover to
pre-pandemic levels only in FY25. In its sensitivity case, leverage
peaks at 9.8x in FY21 but gradually deleverages to 6.9x in FY24 and
averages 6.7x between FY20 and FY24.

Risk Assessment: Fitch assesses GHIAL's volume risk as 'Midrange',
price risk as 'Midrange', infrastructure development as 'Midrange'
and debt structure as 'Weaker'.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

  - Positive rating action is not likely in the near term;

  - A return to a Stable Outlook could be possible, and the rating
affirmed, if Fitch sees sustained recovery in traffic and revenue
due to the easing of the pandemic measures, resulting in normal air
traffic patterns or the adaption of strategies that convincingly
stabilises finances.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

  - Traffic or revenue underperformance, or cost overruns in capex
execution, leading to the rating case net debt/EBITDA remaining
above 6.0x for a sustained period;

  - Further credit erosion of major air carriers or payment
delinquencies hurting the finances of the airport;

  - Deterioration in airport liquidity levels for a sustained
period;

  - Renegotiation of expansion contracts and higher contract prices
as a result of contractors' bankruptcy.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Public Finance 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 three 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.

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).

JET AIRWAYS: Insolvency Resolution Professional Seeks Fresh EoI
---------------------------------------------------------------
Livemint.com reports that Jet Airways insolvency resolution
professional on May 13 invited fresh expressions of interest (EoI)
for the grounded airline. This is the fourth time that EoI has been
invited for Jet Airways, which was shuttered last year.

Livemint.com relates that the last date for submission of bid
documents is May 28 and the final list of prospective resolution
applicants will be issued on June 10, as per a public document. The
decision for issuing fresh EoI was taken during the committee of
creditors (CoC) meeting held recently.

Last week, the CoC had met to discuss the way forward for the
airline. It was the 11th meeting of the CoC, the report says.

In March this year, the National Company Law Tribunal (NCLT) had
allowed 90 days' extension for the corporate insolvency resolution
process of the airline, Livemint.com recalls.

This came after the airline's resolution professional had filed an
application in NCLT seeking 90 days' extension for the insolvency
process after it failed to attract any bidder.

According to Livemint.com, the CoC on February 18, had set a new
deadline of March 10 for submission of bids for the grounded
airline after South American conglomerate Synergy Group and New
Delhi-based Prudent ARC failed to meet the previous deadline.

Later, Synergy Group backed out of the bidding process over slot
issues. The March 10 deadline was set after Russia's Far East Asia
Development Fund also evinced interest in Jet Airways.

                         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.

KAMACHI INDUSTRIES: Ind-Ra Moves 'D' LT Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Kamachi Industries
Limited's Long-Term Issuer Rating to the non-cooperating category.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will now appear as 'IND D
(ISSUER NOT COOPERATING)' on the agency's website.

The instrument-wise rating actions are:

-- INR2,119.8 bil. Fund-based working capital limits (long-
     /short-term) migrated to non-cooperating category with IND D
     (ISSUER NOT COOPERATING) rating;

-- INR4,476.8 bil. Non-fund-based working capital limits (short-
     term) migrated to non-cooperating category with IND D (ISSUER

     NOT COOPERATING) rating; and

-- INR7,131.1 bil. Term loans (long-term) due on June 2022
     migrated to non-cooperating category with IND D (ISSUER NOT
     COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 8, 2019. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 2003, the company manufactures and trades sponge
iron, mild steel billets and thermo mechanical-treated (TMT) bars.
The company has an integrated steel plant, with facilities to
manufacture 120,000 metric tons (MT) of sponge iron, 205,000MT of
steel billets and 500,000MT of TMT bars.

In addition, it operates a 10MW waste heat recovery plant and a
70MW thermal power plant. The company's debt was restructured under
corporate debt restructuring in February 2013.

KAPOTEX INDUSTRIES: ICRA Reaffirms B+ Rating on INR2.28cr Loan
--------------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Kapotex
Industries Private Limited (KIPL), as:

                      Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Cash Credit#        (1.50)      [ICRA]B+(Stable); reaffirmed

   Term Loan            2.28       [ICRA]B+(Stable); reaffirmed

   Export packing       5.00       [ICRA]A4; reaffirmed
   Credit/Packing
   credit in Foreign
   Currency/Export
   Bill Discounting     

   Letter of credit     5.00       [ICRA]A4; reaffirmed

   Bank Guarantee       0.50       [ICRA]A4; reaffirmed

   Credit Exposure      0.10       [ICRA]A4; reaffirmed
   Limit                

   Unallocated          1.40       [ICRA]B+ (Stable)/[ICRA]A4;
   amount                          reaffirmed

#Sub limit of Export Packing Credit/Packing credit in Foreign
Currency/Export Bill Discounting facility of INR5.00 crore

Rationale

The re-affirmation of ratings continues to take into account KIPL's
moderate scale of operations and its stretched liquidity profile
due to high inventory level and receivables in FY2020 following the
country-wide lockdown announced by Government of India (GoI). ICRA
further notes that the company derives over 95% of its revenues
from the overseas market, and the ongoing uncertainty in the global
market can adversely impact its operations in the near term. ICRA
also notes the company's high reliance on a single customer, which
exposes its revenues to customer concentration risks. The ratings
also consider the susceptibility of KIPL's margins to foreign
currency and raw material price fluctuations and the competitive
pressure from international players.

The ratings, however, continue to favourably incorporate the
established experience of the promoters in the wool yarn business
and the company's improved profit margin in FY2019 and 10MFY2020.
Consequently, the capitalization and coverage indicators have also
improved.

The Stable outlook on the [ICRA]B+ rating reflects ICRA's opinion
that KIPL will continue to benefit from the extensive experience of
its management and established relationships with its suppliers and
customers.

Key rating drivers and their description

Credit strengths

* Extensive experience and technical qualification of promoters in
the wool/textile industry:  KIPL was established in 2008 by Mr.
Rajiv Kapur and Mr. Varun Kapur, who are technically qualified and
have a wide experience in manufacturing and marketing of woolen
yarns for the carpet industry. Mr. Rajiv Kapur has an experience of
more than four decades in this industry, which has helped the
company to establish healthy relationship with a few big players in
the rugs and carpets industry in the international market.

* Improved profit margin and capital structure in FY2019 and 10M
FY2020:  KAPL's profit margin improved to 17.89% in FY2019 from
8.53% in FY2018 following economies of scale and decline in raw
material consumption. Increase in cash accruals and repayment of
term loan resulted in improvement in gearing to 0.77 time as on
March 31, 2019 from 1.21 times as on March 31, 2019. The interest
coverage indicator measured as operating profit/interest and
finance expense stood at 4.33 times in FY2019 compared to 0.85 time
in FY2018. The operating profit margin improved further to 24.07%
in 10MFY2020 (as per the provisional figures).

Credit challenges

* Modest scale of operations:  KIPL's scale of operations has
remained moderate during the period under review. The operating
income surged by 119% in FY2019 and stood at INR21.35 crore on the
back of healthy order inflows. However, it continues to remain
modest. The turnover in FY2018 was hit by spillover of orders from
Q4FY2018, which were executed in FY2019. The company reported
operating income of ~Rs. 18.50 crore for FY2020. ICRA further notes
that the company derives over 95% of its revenues from the overseas
market and the ongoing uncertainty in the global market due to
covid-19 outbreak, can adversely impact the company's sales in the
near term.

* Concentrated customer base:  KIPL's reliance on a single customer
has increased over the last two years. The share of the major
customer to the total revenues stood at 51% in FY2019 and 42% in
10MFY2020 compared to 15% in FY2018. While, the company enjoys
established relationships with the customer, its high reliance on
limited customers its revenues to customer concentration risk.

* Stretched liquidity profile because of high inventory levels and
debtors in FY2019 and 11MFY2020 following lockdown:  KIPL's
operations are working capital intensive due to high inventories
and debtors. The intensity reduced to 26% in FY2019 from 54% in
FY2018 owing to reduction in inventory days. The company needs to
stock wool following the seasonal availability of the same. It
extends average credit period of 75 days to its customers,
resulting in high receivables.

Furthermore, the recent lockdown announced in India and at KIPL's
exporting countries, has resulted in high debtors and inventory
build-up as on March 24, 2020 following delay in shipments.

* Margins remain exposed to forex rate fluctuation risks and raw
material price fluctuations:  As the company earns its revenue
primarily from exports, its margins are susceptible to foreign
exchange rates fluctuations in the absence of any hedging policy.
However, the risk is partly mitigated by the fact that ~90% of its
procurement is import dominated. Furthermore, the company enters
into fixed price contract with its customers, thus any increase in
wool prices and its inability to pass on the increase in raw
material prices could affect KIPL's profitability. However, with
~60% ofits procurement being order-backed, this mitigates the raw
material price fluctuation risk to an extent.

* Margin remains under pressure due to intense competition in the
industry:  KIPL faces stiff competition from overseas players in
this sector. However, the company enjoys an edge over international
players in terms of lower labor costs.

Liquidity Position: Stretched

KIPL's liquidity has remained stretched due to low cash accruals
and a significant amount blocked in inventory and debtors as on
March 2020 following the lockdown at various countries, including
India. The company has repayment obligation of INR0.90 crore in
FY2021 and INR0.20 crore in FY2022. While, ICRA notes that
moratorium period of three months and the ad hoc limit of INR0.50
crore extended by the bank will allow the company to manage its
liquidity for the next three months, any recovery in the global
market remains uncertain. The average utilisation of fund-based and
nonfund limits stood at 81% and 85%, respectively, during the past
one year.

Rating sensitivities

Positive triggers – ICRA could upgrade KIPL's rating following
efficient management of its working capital cycle on a sustained
basis. The company's ability to sustain its revenue growth and
profit margin will also remain critical for a rating upgrade.

Negative triggers – ICRA could downgrade the rating following
deterioration in profit margin and increase in working capital
intensity. The company's inability to generate commensurate returns
from the capex will also exert pressure on the rating.

Kapotex Industries Private Limited (KIPL) was incorporated on May
29, 2008 by Mr. Rajiv Kapur and Mr. Varun Kapur. The company
manufactures and exports woollen yarn in the form of worsted spun
yarn and carded yarn. The company's wool yarn finds application in
the manufacturing of rugs, floor coverings and carpets. KIPL's
registered office is in Kurla, Mumbai (Maharashtra), and its
manufacturing unit is at the Gujarat Industrial Development
Corporation (GIDC) area of Valsad with an installed production
capacity of 1,200 metric tonne per annum. The company has set up
another unit at GIDC (adjacent to the prevailing unit), where
dyeing operations are undertaken, along with two additional lines
for carding.

In FY2019, the company reported a net profit of INR2.03 crore on an
OI of INR21.25 crore, compared to net loss of INR0.83 crore on an
OI of INR9.73 crore in the previous year.

LAKSHMI SUBBAIAAH: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: M/s. Lakshmi Subbaiaah Tex Private Limited
        9/7B, Dindigul Main Road
        Vilangudi, Madurai
        Tamil Nadu 625018

Insolvency Commencement Date: May 5, 2020

Court: National Company Law Tribunal, Coimbatore Bench

Estimated date of closure of
insolvency resolution process: November 1, 2020
                               (180 days from commencement)

Insolvency professional: CA. S. Prabhu

Interim Resolution
Professional:            CA. S. Prabhu
                         M/s SPP&Co, Chartered Accountants
                         No. 27/9, Nivedh Vikas
                         Pankaja Mill Road
                         Puliyakulam
                         Coimbatore 641045
                         E-mail: carpprabhu@gmail.com

Last date for
submission of claims:    May 23, 2020


MOONLIGHT MARBLES: ICRA Keeps 'D' Debt Ratings in Not Cooperating
-----------------------------------------------------------------
ICRA said ratings for the INR12.54 crore bank facilities of
Moonlight Marbles Private Limited continue to remain under Issuer
Not Cooperating category. The rating is denoted as [ICRA]D ISSUER
NOT COOPERATING.

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Fund Based-         12.00      [ICRA]D ISSUER NOT COOPERATING;
   Working Capital                Rating continues to remain
                                  under the 'Issuer Not
                                  Cooperating' category

   Fund Based-          0.54      [ICRA]D ISSUER NOT COOPERATING;
   Term Loan                      Rating continues to remain
                                  under the 'Issuer Not
                                  Cooperating' category

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

MMPL was established in 1990 and is involved in processing of
marbles. The manufacturing facility of the company is located at
Rajasamand, Rajasthan. It mainly sells its products in India, with
some exports to countries in Europe and the Middle East.

MUSLIM EDUCATIONAL: CRISIL Withdraws 'B' Rating on INR19.48cr Loan
------------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of The
Muslim Educational Society (Regd.) Calicut (MES) and subsequently
withdrawn the ratings at the company's request and on receipt of
no-objection certificate from its banker. The withdrawal is in line
with CRISIL's policy on withdrawal of bank loan ratings.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Bank Guarantee        5.35       CRISIL A4 (Rating Reaffirmed
                                    and Withdrawn)


   Long Term Loan       19.48       CRISIL B/Stable (Rating
                                    Reaffirmed and Withdrawn)


   Overdraft             5          CRISIL A4 (Rating Reaffirmed
                                    and Withdrawn)

   Term Loan            15.67       CRISIL B/Stable (Rating
                                    Reaffirmed and Withdrawn)

MES was established in 1964, by the late Dr P K Abdul Gafoor in
Calicut (Kerala). The society operates 160 institutions, including
professional colleges, schools, hostels, hospitals, orphanages, and
technical institutes, mostly in Kerala.

NAV JYOTI: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL said the ratings on bank facilities of Nav Jyoti Agro Foods
Private Limited (NJAFPL) continues to be 'CRISIL D Issuer Not
Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit          120         CRISIL D (ISSUER NOT
                                    COOPERATING)

   Term Loan              2.4       CRISIL D (ISSUER NOT
                                    COOPERATING)

   Warehouse Financing   30         CRISIL D (ISSUER NOT
                                    COOPERATING)

CRISIL has been consistently following up with NJAFPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 NJAFPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on NJAFPL 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 NJAFPL continues to be 'CRISIL D Issuer Not
Cooperating'.

Incorporated in 2011 and based in Karnal (Haryana), NJAFPL mills,
processes, and sorts basmati rice. Operations are managed by Mr.
Rajinder Singla and his sons Mr. Pankaj Singla and Mr. Manoj
Singla. Its plant is in Karnal.

NIKHIL FOOTWEARS: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Nikhil Footwears
Private Limited (NFPL) continues to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            50        CRISIL D (ISSUER NOT
                                    COOPERATING)

   Letter of Credit       20        CRISIL D (ISSUER NOT
                                    COOPERATING)

   Standby Letter          3        CRISIL D (ISSUER NOT
   of Credit                        COOPERATING)

   Term Loan               7.64     CRISIL D (ISSUER NOT
                                    COOPERATING)

CRISIL has been consistently following up with NFPL for obtaining
information through letters and emails dated October 15, 2019 and
April 11, 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 NFPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on NFPL 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 NFPL continues to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.

NFPL, established in 1987, is promoted and managed by Mr Naresh
Agarwal. The company manufactures footwear at its facilities in
Kundli and Bahadurgarh, both in Haryana.

RAGHUVIR DEVELOPERS: Ind-Ra Lowers Long Term Issuer Rating to 'BB'
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Raghuvir
Developers and Builders' (RDB) Long-Term Issuer Rating to 'IND BB'
from 'IND BB+' while resolving the Rating Watch Negative (RWN). The
agency has simultaneously migrated the rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Thus, the rating is based on the best available
information. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
now appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.

The instrument-wise rating actions are:

-- INR3,544.3 bil. Term loan due on September 2022 downgraded;
     off RWN; migrated to non-cooperating category with IND BB
     (ISSUER NOT COOPERATING) rating; and

-- INR90 mil. Fund-based working capital limit Long-term rating
     downgraded; short-term rating affirmed; off RWN; migrated to
     non-cooperating category with IND BB (ISSUER NOT COOPERATING)

     / IND A4+ (ISSUER NOT COOPERATING) rating.

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

KEY RATING DRIVERS

The downgrade and RWN resolution reflect the likely stress on RDB's
credit profile and liquidity in FY21 due to a fire that broke out
on January 21, 2020, in one of the firm's completed projects -
Raghuvir Celeum Center (RCC) - in Surat's textile market.

The Surat Urban Development Authority canceled RCC's building-use
certificate (B.U.C) on 22 January 2020; it remains canceled till
date. According to the management, the RCC project has been under
repair post the cancellation of B.U.C, and the full repair work
along with B.U.C verification, and the re-certification process was
expected to be completed by July 31, 2020. However, due to the
COVID-19-related lockdown, the management now expects the repair
work and other processes related to the RCC project to be completed
by October 31, 2020.

The rating has been migrated to the non-cooperating category, as
the company did not provide Ind-Ra with sufficient information
regarding its existing projects, cash flow statements, etc.

COMPANY PROFILE

Registered in November 2006, RDB is a partnership firm engaged in
the construction of residential and commercial real estate projects
in Surat, Gujarat.

REAL GROWTH: ICRA Keeps 'D' Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA said the ratings for the INR25.00 crore bank facilities of
Real Growth Commercial Enterprises Limited continue to remain under
Issuer Not Cooperating category. The rating is denoted as [ICRA]D
ISSUER NOT COOPERATING.

                   Amount
   Facilities    (INR crore)    Ratings
   ----------    -----------    -------
   Fund based        21.00      [ICRA]D ISSUER NOT COOPERATING;
   limits                       Rating continues to remain under
                                the 'Issuer Not Cooperating'
                                category

   Non-Fund           4.00      [ICRA]D ISSUER NOT COOPERATING;
   Based limits                 Rating continues to remain under
                                the 'Issuer Not Cooperating'
                                category

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

IRGCEL was incorporated in 1995 under the name KRS Financials Pvt.
Ltd. In 2001, it was taken over by the RG Group and its name was
changed to Rajesh Projects & Finance Limited, which was
subsequently renamed to Real Growth Commercial Enterprises Ltd. in
January 2011. The company was involved in the development of
commercial offices-cumshopping complexes till 2007. It commenced
trading in stainless steel sheets of various dimensions in January
2010 in Bhiwadi (Rajasthan).

SAPPHIRE LIFESCIENCES: ICRA Reaffirms D Rating on INR18.5cr Loans
-----------------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Sapphire
Lifesciences Private Limited (SLPL), as:

                   Amount
   Facilities    (INR crore)    Ratings
   ----------    -----------    -------
   Fund-based
   Cash Credit       12.50      [ICRA]D; Reaffirmed

   Fund-based
   Term Loan          6.00      [ICRA]D; Reaffirmed

Rationale

The rating reaffirmation reflects the continued delays in servicing
debt obligations by SLPL owing to its stressed liquidity position.
This is attributable to its high working capital requirement, high
interest cost and impending repayment obligations (arising from the
debt-funded capital expenditure undertaken in the past), which have
resulted in a stressed cash flow position.

Key rating drivers and their description

Credit strengths

* Extensive experience of promoters in pharmaceutical industry:
Mr. Parag Shah, a chemical engineer and the company's key
management member, has an experience of over 25 years in the
pharmaceutical industry and handles commercial activities of the
business. The management's extensive experience within the industry
would lend comfort to the company's credit profile, going ahead.

Credit challenges

* Stretched liquidity position delayed servicing debt obligations:
ICRA has noted that the company continues to delay its term loan
repayments coupled with over utilisation in its fund-based working
capital limits for the recent months, as confirmed by the lender.
Increase in the working capital requirement, coupled with
significant debt-funded capex during the last few years, resulted
in high interest cost and repayment obligations, straining the
company's cash flow position.

* Leveraged capital structure with weak coverage indicators:  The
company's capital structure remained leveraged with a gearing of
1.6 times as on March 31, 2019. The same, however, improved from
1.9 times as on March 31, 2018 due to repayment of term loans.
Interest coverage continued to remain weak at 1.6 times in FY2019
due to penal interest charged by banks as a result of delay in term
loan repayments.

* Intense competition and relatively low entry barriers in
semi-regulated market:  The continuous effort to boost Indian
pharmaceutical exports to South East Asia, Africa and Latin America
(including regular buyer-seller meets and exhibitions
to showcase India's pharmaceutical capabilities) have resulted in a
significant demand for Indian pharmaceutical products over the last
couple of years. Low entry barriers, coupled with numerous
pharmaceutical formulation manufacturing companies, result in
intense competition within the industry and limit the company's
margin flexibility.

Liquidity position: Poor

Declining scale of operations, continuous delay in bank loan
repayments and high interest expenses are likely to keep the
liquidity position poor.

Rating sensitivities

Positive triggers – The rating will be upgraded in case of
regularisation of bank loan repayments for a continuous period
of three months.

Negative triggers – Not applicable

Sapphire Lifesciences Private Limited, earlier known as Saphire
Capsules Pvt. Ltd., is an integrated three-dosage section (tablets,
capsules and external dusting powders) pharmaceutical
contract-manufacturing enterprise. The company manufactures tablets
and capsules from its WHO-GMP certified plant at Palghar in Thane,
Maharashtra.

In FY2019, the company reported a net loss of INR0.2 crore on an
operating income (OI) of INR87.2 crore, compared to a net profit of
INR0.1 crore on an OI of INR142.6 crore in the previous year.

SIXTH ENERGY: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Sixth Energy
Technologies Private Limited's (SETPL) Long-Term Issuer Rating at
'IND BB+'. The Outlook is Stable.

The instrument-wise rating actions are:

-- INR30.6 mil. (reduced from INR89.6 mil.) Fund-based working
     capital limits affirmed with IND BB+/Stable rating;

-- INR59.4 mil. Packing credit affirmed with IND BB+/Stable
     rating; and

-- INR204.8 mil. Term loan due on December 2024 assigned with IND

     BB+/Stable rating.

KEY RATING DRIVERS

The affirmation reflects SETPL's continued small scale of
operations, as indicated by revenue of INR245.9 million in 11MFY20
(FY19: INR427 million; FY18: INR263 million). The revenue declined
primarily due to a shift in the company's operating strategy to the
operating expenditure (OPEX) model from the capital expenditure
(CAPEX) model for its banking customers in FY20. The CAPEX model
involved the direct sale of the product and recognition of the
revenue in the books. Against this, under the OPEX model, the
company deploys the asset at the customer's site and receives the
subscription amount as fixed income over a period of time.

The ratings reflect SETPL's modest EBITDA margins due to the nature
of the business. The margin fell to 12% in FY19 (FY18:16.9%) due to
an increase in the overall expenses, as major orders that were
received in FY18 were executed in FY19. However, the margin
increased to 25% in 11MFY20, as the aforementioned change in the
operating model led to a fall in material costs and other
associated expenses. The company's return on capital remained at 4%
in FY19 (FY18: 4%).

Liquidity Indicator- Stretched: SETPL's average maximum utilization
of the fund-based working capital limits stood at 92% in the 12
months ended February 2020. The cash flow from operations increased
to INR20 million in FY19 (FY18: INR7 million) on the back of an
improvement in the overall working capital cycle to 177 days (288
days), resulting from a fall in debtor days (FY19: 96 days; FY18:
176 days) and inventory holding days (97 days; 136 days). As of
March 2019, the company's cash balance was INR39 million and the
unutilized credit line amounted to INR8.12 million. Ind-Ra expects
the inventory days to have elongated to about 190 days in FY20 due
to the COVID-19-related lockdown. This is likely to have resulted
in a stretched net working capital cycle in FY20. SETPL has availed
moratorium from the bank for the working capital facilities and
term loans.

The ratings are supported by moderate credit metrics. Despite an
increase in the absolute EBITDA to INR51 million in FY19 (INR44
million), the interest coverage (operating EBITDA/gross interest
expense) deteriorated to 3.8x in FY19 (FY18: 4.2x) due to an
increase in interest expenses to INR13 million in FY19 (INR10
million). Although the debt increased to INR141 million in FY19
(FY18: INR111 million), the net financial leverage (total adjusted
net debt/operating EBITDAR) improved to 1.97x (2.5x) on account of
an increase in the cash balance to INR39 million (INR0.78 million).
With the increase in the debt level on the back of new term loans
availed in FY20, the credit metrics are likely to have deteriorated
in FY20 and might weaken further in FY21.

The ratings continue to be supported by the directors' experience
of more than a decade in the field of machine data technology.

RATING SENSITIVITIES

Negative: A decline in the scale of operations along with operating
profitability or further elongation of the net working capital
cycle, leading to the net leverage rising above 3.5x, all on a
sustained basis, could be negative for the ratings.

Positive: A substantial increase in the scale of operations as well
as operating profitability, along with an improvement in the credit
metrics, with the net leverage remaining below 2.5x, on a sustained
basis, could be positive for the ratings.

COMPANY PROFILE

Incorporated in 2003, Bangalore-based SETPL provides end-to-end
remote management solutions for data centers, businesses, banks and
telecom sectors, and enterprise infrastructures. The company
remotely monitors and manages power and cooling equipment in the
telecom towers (base station controller, base transceiver
stations), telecom switching centers (mobile switching center),
data centers, industrial locations, enterprise buildings, and
off-grid and grid-tie renewable energy power stations.

VITTHAL RUKHMAI: CRISIL Reaffirms B+ Rating on INR6.15cr Loans
--------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL BB-/Stable' rating on the
long-term bank facilities of Vitthal Rukhmai Ginning & Pressing
Industries (VRGPI).

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit          3.15        CRISIL B+/Stable (Reaffirmed)
   Term Loan            3.00        CRISIL B+/Stable (Reaffirmed)

The rating continues to reflect the firm's susceptibility to
volatile cotton prices and regulatory changes, modest scale of
operations, and below-average financial risk profile. These
weaknesses are partially offset by the extensive experience of the
promoters in the textile - ginning industry.

Key Rating Drivers & Detailed Description

Weaknesses

* Susceptibility to volatile cotton prices and regulatory changes:
Cotton being an agricultural commodity, its availability depends on
the monsoons. Moreover, government interventions and volatile
global cotton output have resulted in sharp fluctuations in cotton
prices. Any abrupt change in regulations can distort market prices
and affect the profitability of players in the cotton value chain,
including ginners.

* Modest scale of operations: VRGPI's business risk profile is
constrained by its modest scale in the intensely competitive
textile - ginning industry. The modest scale will continue limit
the economies scale and operating flexibility.

* Below-average financial risk profile: Debt protection metrics
have been average in the past due to high gearing and low cash
accrual. Interest coverage and net cash accrual to total debt
ratios stood at 2.48 times and 0.1 time, respectively, in fiscal
2019. The metrics should remain weak due to high debt levels.

Strength

* Extensive experience of the promoters: The extensive experience
of the promoters, their strong understanding of the market
dynamics, and healthy relationships with suppliers and customers
should continue to support the business.

Liquidity Stretched

Liquidity is stretched, Net Cash Accruals of INR0.6-0.9 crore per
annum against repayment obligations of Rs. 0.45 crore per annum
over medium term. Bank limit utilization was moderate, averaging
57% for the past 12 months ended March 2020. Liquidity is also
aided by funding support via unsecured loans from the partners.
Current ratio has remained average at 1.06 times, estimated as on
March 31, 2019 and expected to improve over the medium term.

Outlook: Stable

CRISIL believes VRGPI will continue to benefit from the promoters'
extensive experience and healthy relationships with clients.

Rating Sensitivity factors

Upward factors

* Substantial increase in revenue (revenue growth of 20% and more)
and stable operating margin

* Improvement in the capital structure

Downward factors

* Lower-than-expected revenue and profitability leading to cash
accrual of less than INR0.45 crore

* Debt-funded capital expenditure weakening liquidity

VRGPI was establish in 2017, it is located in Chandrapur Zone,
Maharashtra. VRGPI is promoted by Mr. Ramesh Baliram Bankar, Mr.
Sachitanand Maroti Lakhe, Mr. Gopal Ghanshamdas Balduva and Mr.
Ishwar Manikrao Zade. VRGPI is engaged in cotton ginning and
pressing business.

[*] INDIA: Fresh Crisis Looms for Shadow Banks After Fund Shuts
---------------------------------------------------------------
Divya Patil at Bloomberg News reports that India's shadow lenders
are facing fresh turmoil after asset manager Franklin Templeton
shut funds late last month, prompting other large investors to dump
the financiers' debt.

Bloomberg says mutual funds are big buyers of non-bank financial
firms' bonds and some are struggling to meet redemptions after the
biggest-ever forced closure of funds in the country. Spreads on AAA
rated five-year bonds of shadow lenders have soared to an
eight-year high. Three other gauges of the sector's health compiled
by Bloomberg showed no improvement last month, with a measure of
shares of 20 financial firms and other companies staying
depressed.

According to Bloomberg, the scores attached to each of the measures
have been calculated by normalizing the deviation of the latest
value of the indicator from its yearly average. They are assigned
on a scale of 1 to 7, with 1 implying weakness and 7 showing
strength.

Bloomberg relates that there are mounting concerns that the default
rate in India may spike after the world's biggest stay-at-home
restriction halted manufacturing and wiped out consumption. Credit
growth has remained sluggish, with banks hoarding cash, Bloomberg's
index of banking liquidity showed last month.

"Most of the banks have stayed away from lending to smaller NBFCs
like us for the last 18 months," Bloomberg quotes Kunal Mehta,
founder of Arthan Finance Pvt., which specializes in small business
financing across second and third-tier Indian cities, as saying.
Lending aversion deepened further after the outbreak as businesses
were shut due to the lockdown, he said.

Authorities have been struggling to steady India's shadow-bank
sector since the collapse of major infrastructure financier IL&FS
Group in 2018, Bloomberg notes. The firms form the backbone of
Asia's third-largest economy as they lend to everyone from small
merchants to business titans.

According to Bloomberg, to help cash-starved shadow lenders cope
with the coronavirus-fueled slowdown and encourage banks to invest
in bonds of these financiers, the government on May 13 announced
new measures after the steps taken by the central bank last month
on buying debt of shadow lenders met a lukewarm response.

The government will open a INR300 billion ($4 billion) credit line
for non-bank firms, and will fully guarantee investment-grade
securities issued under this plan, Finance Minister Nirmala
Sitharaman said on May 13, Bloomberg relays. To further help
lower-rated financiers, the government will also provide a partial
guarantee to bonds rated AA and below, injecting another INR450
billion.

India's non-bank financiers aren't alone facing the heat, Bloomberg
notes. Global peers in the U.S. were struggling until the Federal
Reserve last month expanded its unprecedented support of credit
markets to include the debt of riskier borrowers, the report says.



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

GOLDEN ENERGY MINES: Fitch Affirms LT IDR at 'B+', Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed Golden Energy Mines Tbk's Long-Term
Issuer Default Rating at 'B+' with a Stable Outlook. At the same
time, Fitch Ratings Indonesia has affirmed GEMS's National
Long-Term Rating of 'A(idn)' with a Stable Outlook.

Fitch assesses GEMS's linkage with its 67% shareholder, Golden
Energy and Resources Limited (GEAR, B+/Stable), as moderate and
consequently rates GEMS based on the consolidated credit profile of
GEAR, based on its Parent and Subsidiary Linkage criteria. The
affirmation reflects its assessment that the group's credit profile
remains adequate for its rating level, even as Fitch has lowered
its coal price and volume assumptions. Fitch cut GEMS's selling
prices following its commodity price assumptions.

Fitch has also revised down its sales volume forecast to 27.5
million tonnes (mt) in 2020 following its expectations of weakening
demand due to the coronavirus. Fitch expects volume to rise to
32.5mt in 2021 and increase by about 4mt over the following two
years, reaching 40mt by FY23. Fitch assesses GEMS's standalone
profile at 'b+', reflecting its healthy reserve life, the low-cost
position of its key mine, PT Borneo Indobara, and adequate
financial profile. This is partially offset by mine concentration,
regulatory risks and the cyclical nature of the coal industry.

'A' National Long-Term Ratings denote expectations of low default
risk relative to other issuers or obligations in the same country.
However, changes in circumstances or economic conditions may affect
the capacity for timely repayment to a greater degree than is the
case for financial commitments denoted by a higher rated category.

KEY RATING DRIVERS

Moderate Linkage with GEAR: Fitch maintains its assessment of
moderate linkages between GEAR and GEMS under Fitch's Parent and
Subsidiary Rating Linkage criteria. GEAR retains majority
representation over GEMS's board, and is involved in managing
GEMS's operation. GEAR's standalone operations are not significant
and it solely depends on dividends from its subsidiaries, primarily
GEMS, to service the debt at its level.

An agreement between GEMS's shareholders ensures that the company
will maximise profit distribution by paying at least 80% of its
free cash flow as dividends. However, GMR Coal Resources Pte. Ltd,
which owns 30% of GEMS, has also appointed key management personnel
and has veto power in major corporate transactions.

Temporary Volume Decline at GEMS: Fitch expects GEMS's sales volume
to fall by about 10% to 27.5mt in 2020 (2019: 30.8mt) due to weaker
demand on account of the economic slowdown caused by the
coronavirus pandemic. This is down from its original expectation of
a growth to 36mt in 2020. Fitch expects the company to maintain its
growth trajectory after 2020, reaching close to its target peak
production volumes of around 40mt by 2023.

GEMS's production base has grown significantly over the last few
years, expanding by about 8mt in just 2019 from 22.6mt in 2018.
GEMS does not require any significant infrastructure enhancement to
support its volume growth as its own port is able to support
shipping of about 44mt a year. Fitch expects the company to reduce
capex to about USD10 million in 2020 (2019: USD23 million) and then
increase it to about USD25 million a year starting 2021, mainly to
upgrade the capacity of the hauling roads and crushers.

Decline in Profitability: Fitch expects GEMS's EBITDA per tonne to
be between USD3.1/tonne-USD3.5/tonne in 2020 based on its revised
price assumptions before rising back to remain between USD4/tonne
and USD5/tonne (2019: USD4/tonne, 2018: USD6.8/tonne), over the
next three years. The decline in the profitability is in line with
the industry, although this is partially offset by the decline in
fuel prices. Consequently, Fitch expects GEMS to have a net debt
position starting 2020 through its forecast period, as opposed to a
neutral position in 2019.

GEMS Limited Mine Diversity: BIB accounts for more than 90% of
GEMS's total production and above 65% of the proven and probable
(2P) reserves. BIB's production ramp-up plans means the
contribution from GEMS's other mines will remain small. The reserve
concentration risk is partly offset by the geographical
diversification of their reserves, with about 30% of their 2P
reserves outside the island of Kalimantan. In terms of operations,
Fitch believes the risk is mitigated by its contracts with leading
Indonesian mining contractors, such as PT Saptaindra Sejati (a
subsidiary of PT Adaro Energy Tbk) and PT Putra Perkasa Abadi. GEMS
benefits from BIB's competitive cost structure, given its low strip
ratio of 4x, coupled with short haulage requirements.

Long Reserve Life: GEMS has one of the largest reserves compared
with its coal-mining peers in Indonesia. GEMS's reserves are the
fourth-largest in Indonesia, with proven reserves of around 806mt
at end-2019 (end-December 2018: 818mt), or a reserve life of 27
years based on its 2019 total expected production. GEMS's
acquisition of the PT Barasentosa Lestari mine in the second half
of 2018 had further improved its reserve base by adding 150mt of
proven reserves. GEMS's BIB mine holds 576mt of the proven
reserves, with a second-generation licence valid until 2036.

Adequate Financial Profile at GEAR: Fitch expects GEAR's
consolidated financial profile to improve from 2021 after weakening
marginally in 2020. GEAR's has acquired a majority stake in
Stanmore Coal Limited - an Australia-based metallurgical
coal-mining company - which supports its efforts to diversify its
business profile. Stanmore's net cash position and modest earnings
expectations post 2020 should support the group's financial profile
over the medium term, in Fitch's view.

Fitch expects GEAR's consolidated group leverage (with
proportionate consolidation of GEMS and full consolidation of
Stanmore adjusted for minority interests) (net debt/EBITDA) to fall
to below 1.5x in 2021, after rising to around 2.0x in 2020 (2019:
1.8x). Fitch also expects GEAR's holding company standalone
interest cover to improve to about 3.0x in 2021, after weakening in
2019 and 2020 to around 1.5x.

GEMS Standalone at 'b+': GEMS's standalone profile benefits from
its modest yet increasing coal volumes and competitive cost
position. However, the calorific value of GEMS's coal is lower than
the Indonesian average, resulting in a lower selling price and a
lower EBITDA size compared with its peers. Fitch views GEMS's
financial profile as stronger than its current standalone profile,
but its scale of operations constrains the standalone profile at
'b+'. Fitch assesses that scale of operations to be an important
factor in this industry, because the companies with larger scale in
terms of revenue, EBITDA and cash flow have greater ability to
withstand the inevitable industry downturns.

DERIVATION SUMMARY

The ratings of GEMS are based on the consolidated financial metrics
of the GEAR group. The ratings factor in the group's adequate
financial profile, large reserve base, low-cost position but
improving scale of operations and track record.

PT Indika Energy Tbk's (BB-/Negative) has more integrated
operations across the thermal coal value chain, but GEAR benefits
from improving diversification after acquiring Stanmore, although
the latter's contribution to cash flow will be minimal in the next
two to three years. However, Indika's larger scale and
well-established operations justify the one-notch difference in
their IDRs, as GEAR's key assets, GEMS and Stanmore, are still
boosting production. The Negative Outlook on Indika reflects the
limited headroom in its rating because of its expectations of
weakening financial profile following its revision in coal price
and volume assumptions.

In comparison with PT Bayan Resources Tbk (BB-/Stable), GEAR's
business profile benefits from diversification into hard coking
coal. Bayan's similar scale as GEMS but better cost structure
supports its stronger operating cash flow, explaining the one-notch
differential in their ratings. Both companies have strong financial
profiles.

KEY ASSUMPTIONS

- Index coal prices in line with Fitch's mid-cycle commodity price
assumptions, adjusted for the difference in CV (thermal coal
average Newcastle 6,000 kcal/kg, Free on board (FOB): USD63/tonne
in 2020 and USD72/tonne in 2021, USD72/tonne in 2022 and
USD70/tonne thereafter) and hard coking coal (Australia premium
spot, FOB): USD 140/tonne throughout its forecast period.

- GEMS's total volume of coal sales to decline by 10% to 27.5mt in
2020; thereafter increasing by 3mt-5mt a year until 2023, reaching
40mt by 2023.

- Capex incurred by GEMS at USD10 million in 2020 and USD25
million during 2021-2023.

- Outflow of USD90 million in 2020 at GEAR for the acquisition of
Stanmore and Ravenswood gold mine.

  - Met coal sales volumes of 1.9mt in 2020, 2.5mt in 2021 and
2.9mt in 2022, and EBITDA contribution of around USD30 million-60
million from Stanmore from 2020-2023.

- Stanmore capex of USD25 million-30 million during 2020-2022,
declining to USD12 million in 2023.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

- GEAR's holding company's standalone EBITDA/interest cover of
above 3.0x on a sustained basis;

- Sustainable improvement in the scale of operations for the
group;

- Net adjusted debt/EBITDAR of less than 2.5x, based on a
proportionate consolidation of GEMS and full consolidation of
Stanmore adjusted for minority interests.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

- GEAR's holding company's standalone EBITDA/interest cover of
below 2.0x;

- Net adjusted debt/EBITDAR of more than 3.5x, based on a
proportionate consolidation of GEMS and full consolidation of
Stanmore adjusted for minority interests.

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

Adequate Liquidity: GEAR group's healthy cash flow generation and
well-spread debt maturities underpin the adequate liquidity. The
group had USD320 million of debt as of end-2019 (end-2018: USD269
million), which included USD38 million of short-term debt and USD23
million of debt maturing in 2020 compared with the readily
available cash of USD189 million. GEAR's debt is expected to
increase by about USD45 million in 2020, mainly to fund the two
investments, Stanmore and Ravenswood, with part of the USD90
million outflow funded from sale of its investments in Westgold.

The group's debt, both at GEMS and the holding-company level, has a
gradual repayment structure except for the bond repayment in 2022.
Fitch expects the group to require partial refinancing of the bond,
before 2022. Fitch regards the refinancing risk as low, taking into
account GEAR's adequate credit profile and access to banks and
capital markets. Both GEAR's subsidiaries, GEMS and Stanmore, have
outstanding committed facilities for working capital purposes. GEMS
also has an outstanding USD30 million facility, which it can use
for capex.

On a standalone basis, GEMS has improving cash flow generation,
moderate debt levels and well-distributed amortising debt, which
supports its adequate liquidity position. The company's modest
capex requirement means Fitch does not expect the debt at GEMS to
increase over the next three to four years. GEMS's short-term debt
(including debt maturing in 2020) is about USD50 million, which is
easily covered by its cash position of about USD152 million, as of
end- March 2020, and undrawn credit facilities of USD30 million,
which can be used for capex purposes.

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).



===============
M A L A Y S I A
===============

1MDB: 'Wolf of Wall Street' Producer Reaches Settlement
-------------------------------------------------------
Anisah Shukry and Yantoultra Ngui at Bloomberg News report that
Riza Aziz, one of the producers of "The Wolf of Wall Street" movie
and stepson to Malaysia's former leader Najib Razak, reached a
settlement on Malaysia charges linked to 1MDB.

He was discharged not amounting to acquittal on May 14 after
reaching an agreement with the government, said Deputy Public
Prosecutor Ahmad Akram Gharib, Bloomberg relates. That means the
government will get "a substantial sum running into several million
ringgit," according to a statement read out by the prosecution
team.

"If there is satisfactory completion of the agreement then
appropriate steps will be taken to ensure that the accused obtains
a full acquittal," the team said in the statement. Otherwise,
prosecutors have the right to reinstate the charges, Bloomberg
relays.

According to Bloomberg, Riza faced five counts of money laundering
for allegedly receiving $248.2 million of funds that prosecutors
said were stolen from 1MDB, which has been at the center of global
corruption investigations. He's a co-founder of Red Granite
Pictures Inc. that previously reached a $60 million settlement with
the U.S. Justice Department over claims that it financed the movie
using money siphoned from the troubled state fund, the report
says.

His stepfather Najib was ousted from power in 2018 and subsequently
charged for his alleged role in 1MDB as the then-Malaysian
government stepped up investigations into the scandal, Bloomberg
relates. Since then, the country saw a political turmoil bring
Najib's party back into power, leading to concerns over the ongoing
probes and legal proceedings related to 1MDB.

Current Prime Minister Muhyiddin Yassin has pledged to keep
fighting corruption and working with jurisdictions across the world
to bring back funds linked to the state fund, Bloomberg says.

                             About 1MDB

Kuala Lumpur-based 1Malaysia Development Bhd (1MDB) operates as a
overnment agency. The Company offers financial assistance,
analysis, and advice through investors, corporations, and
consultants to startups and growth companies. 1MDB focuses on
investments with strategic value and high multiplier effects on the
economy, particularly in energy, real estate, tourism, and
agribusiness.

As reported in the Troubled Company Reporter-Asia Pacific in June
2015, Reuters relayed that Singapore Police Force has frozen two
bank accounts to help with an investigation in to Malaysia's
troubled state-owned investment fund 1Malaysia Development Bhd
(1MDB), which is being probed by authorities in Malaysia for
financial mismanagement and graft.  Reuters said the freezing of
the Singapore bank accounts follows a similar move in Malaysia
where a task force investigating 1MDB said earlier in July that it
had frozen half a dozen bank accounts following a media report that
nearly $700 million had been transferred to an account of
Malaysia's Prime Minister Najib Razak.

The Wall Street Journal reported in July 2015 that investigators
looking into 1MDB had traced close to US$700 million of deposits
moving through Falcon Bank in Singapore into personal bank accounts
in Malaysia belonging to Najib.

The TCR-AP, citing Bloomberg News, reported in November 2015, that
1MDB agreed to sell its power assets to China General Nuclear Power
Corp. for MYR9.83 billion (US$2.3 billion) as the state investment
company moved one step closer to winding down operations after its
mounting debt raised investor concern.

Bloomberg, citing President Arul Kanda in October 2015, related
that the company faced cash-flow problems after a planned initial
public offering of Edra faced delays amid unfavorable market
conditions.  The listing plan was later canceled as the company
opted for a sale of the assets, Bloomberg noted.

The TCR-AP, citing The Wall Street Journal, reported in April 2016,
that the company defaulted on a $1.75 billion bond issue, riggering
cross defaults on two other Islamic notes totaling MYR7.4 billion
($1.9 billion).

Asian Nikkei Review reported in June 2016 that Malaysia has
replaced the board of 1Malaysia Development Berhad with treasury
officials, paving the way for the dissolution of the troubled state
investment fund.



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

CHINA BANKING: Fitch Alters Outlook to Negative on Coronavirus
--------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings of
China Banking Corporation at 'BB+'. The Outlook is, however,
revised to Negative from Stable to reflect the deteriorating
operating environment as a result of the coronavirus outbreak,
which will weigh significantly on asset quality and profitability
over the next few years.

The Philippine economy is experiencing a severe shock relative to
the high growth rates of recent years. An ongoing 60-day lockdown
of large swathes of Luzon - comprising 57% of the population and
73% of GDP - has suppressed consumer demand, the primary driver of
the economy, and causing significant financial strains for
individual and corporate borrowers. Fitch expects the economy to
contract by 1% in 2020, marking the first recession since 1998,
before rebounding by 7% in 2021. Against this backdrop, Fitch has
lowered the Philippines' banking system operating environment
factor mid-point to 'bb+'/stable from 'bbb-'/stable.

Fitch's sovereign rating for the Philippines is 'BBB'/Stable, which
was revised from 'BBB'/Positive on May 7, 2020 to reflect
deterioration in the near-term macroeconomic and fiscal outlook as
a result of the impact of the global pandemic and domestic
lockdown.

KEY RATING DRIVERS

IDRS AND VIABILITY RATING

The bank's IDRs are driven by its Standalone Credit Profile, which
is reflected in its VR. The ratings take into account a growing
franchise, moderate capital buffers, and satisfactory funding and
liquidity profile, which are balanced against the risks from rapid
loan growth in recent years and high portfolio concentration in
large borrowers. The ratings also take into consideration the
deteriorating economic outlook, which significantly raises the
downside risks on CBC's asset quality and profitability.

Fitch has revised the outlook on CBC's asset quality mid-point to
negative, to reflect potential deterioration stemming from the
outbreak and its economic fallout. CBC enters the crisis with
stronger asset quality than the system average, as reflected in its
non-performing loan ratio of 1.5% at end-2019 (system: 2.1%). The
bank's SME loan mix of around 5% is broadly comparable with that of
the system, a segment which is likely to face greater pressure in
the current environment. Fitch expects loan delinquencies to rise,
while regulatory reliefs and its steady underwriting standards
should cushion in part the deterioration in the near term.

CBC's average operating profit over risk-weighted assets ratio of
1.7% over 2014-2019 was broadly comparable with its local peers'
average of 1.8%. As with other banks, Fitch expects profitability
headwinds to rise amid the aggressive monetary easing, lower client
activity and higher credit costs as loans sour in the near term.
Against this backdrop, Fitch has lowered the bank's earnings and
profitability mid-point to 'bb' with a negative outlook.

Fitch believes that CBC has moderate - albeit lower than average -
capital buffers to withstand moderate credit stress in the system,
as reflected in its common equity Tier 1 ratio of 12.8% at
end-2019. Notwithstanding this, Fitch has lowered the bank's
capitalisation and leverage mid-point to 'bb' as its current ratio
is no longer commensurate with a 'bbb-' rating as per Fitch's
criteria - given the revised operating environment mid-point into
'bb' category.

CBC's loans to deposits ratio of 75% at end-2019 was lower than its
peer average, and the liquidity coverage ratio of 128% underlines
the bank's satisfactory liquidity position. Lower reserve
requirements, together with slower credit growth, should help to
support funding conditions in the near term, with central bank
liquidity support acting as a backstop should conditions turn more
severe.

SUPPORT RATING AND SUPPORT RATING FLOOR

CBC's Support Rating of '3' and Support Rating Floor of 'BB'
indicate its expectation that there is a moderate likelihood of
extraordinary state support to the bank, in times of need. The
ratings consider the bank's moderate systemic importance, with
market share of about 5% by assets and the Philippines' sovereign
fiscal flexibility, as indicated by its 'BBB' rating.

RATING SENSITIVITIES

IDRS, VR,

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

Fitch may downgrade the bank's IDRs and VR to 'BB' and 'bb',
respectively, if the deterioration in the Philippines' economic
environment worsens and drives the bank's asset quality and
profitability metrics to levels exceeding its base scenario: that
is, if the NPL ratio rises to - and stays above - 3% over a
prolonged period and/or if its operating profit/RWA trends below
1.5% on a sustained basis. Any downgrade in the IDR, however, would
be limited to one notch - given the bank's SRF of 'BB' - unless its
assessment of state support also weakens.

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

An economic recovery that is faster or in line with its base-case
projection, resulting in lower credit impairment, may lead us to
revise the Outlook on the IDR back to Stable.

Fitch would also consider upgrading the VR to 'bbb-' if CBC is able
to maintain its current asset quality while also improving its
profitability and capitalisation in a sustainable manner to levels
more comparable with its higher-rated peers. Upgrade prospects,
however, are currently low, in light of the deteriorating economic
environment.

SUPPORT AND SUPPORT RATING FLOOR

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

CBC's Support Rating and SRF are sensitive to changes in the
state's ability and propensity to support the bank. A downgrade in
the sovereign rating, for example, would be likely to lead to a
similar revision in its support ratings, in the absence of a
stronger track record and statements by the government to support
the bank.

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

An upgrade in the sovereign rating may lead to similar positive
rating action on the bank's SRF and Support Rating, provided that
the state's propensity to support the bank also improves. This
could result from the bank's growing systemic importance, as
indicated by improving market shares, or stronger and more
consistent statements and record of support to the banking system
from the state.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions
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 fits 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.

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).

PHILIPPINE NATIONAL: Fitch Cuts LT IDRs to 'BB', Outlook Stable
---------------------------------------------------------------
Fitch Ratings has downgraded the Long-Term Issuer Default Ratings
of Philippine National Bank to 'BB' from 'BB+', as Fitch expects
the economic fallout as a result of the coronavirus outbreak to
weigh significantly on the credit profile in the near to medium
term. The Outlook on the IDRs is Stable, as PNB's IDRs are now
driven by its expectation of sovereign support instead of its
Standalone Credit Profile, as was previously the case.

Fitch has also revised the operating environment for the
Philippines' banking system to 'bb+'/stable from 'bbb-'/stable. The
Philippine economy is experiencing a severe shock relative to the
high growth rates of recent years. An ongoing 60-day lockdown of
large swathes of Luzon - comprising 57% of the population and 73%
of GDP - has suppressed consumer demand, the primary driver of the
economy, and is resulting in significant financial strains for
individual and corporate borrowers. Fitch expects the economy to
contract by 1% in 2020, marking the first recession since 1998,
before rebounding by 7% in 2021.

Fitch's sovereign rating for the Philippines is 'BBB'/Stable, which
was revised from 'BBB'/Positive on May 7, 2020 to reflect
deterioration in the near-term macroeconomic and fiscal outlook as
a result of the impact of the global pandemic and domestic
lockdown.

KEY RATING DRIVERS

IDRS, SUPPORT RATING AND SUPPORT RATING FLOOR

PNB's IDRs are sovereign-support driven, reflecting its expectation
of a moderate probability of extraordinary state support to the
bank, in times of need. This also drives its Support Rating of '3'
and Support Rating Floor of 'BB'. The ratings take into
consideration its moderate systemic importance, with about a 6%
market share of system assets, and the Philippines sovereign fiscal
flexibility - as indicated by its 'BBB' rating.

VR

The bank's VR takes into consideration its generally stable funding
profile and moderate capital buffers, balanced against its
heightened risk appetite, risks from rapid credit growth in recent
years, and high single-borrowers concentration - the latter a
common trait of many Philippine banks. It also takes into account
its asset quality which is weaker than peers, and profitability, as
well as the deteriorating economic outlook which is likely to exert
significant pressure on these financial metrics in the near to
medium term.

Fitch has downgraded the bank's asset quality mid-point score to
'bb-', with a negative outlook, to reflect the potential
deterioration in its asset-quality metrics due to the worsening
economic environment. PNB enters the crisis with weaker asset
quality than peers, as reflected in its non-performing loan (NPL)
ratio of 3.2% at end-2019 (versus system average of 2.1%).
Notwithstanding announced regulatory relief measures, Fitch expects
loan delinquencies to rise, especially since the quality of recent
rapid loan growth has not been tested through a down-cycle. The
SME, transportation, hospitality and retail service sectors are
likely to face the greatest asset-quality pressure under the
current circumstances.

PNB's risk-adjusted returns, despite improvement in recent years,
has also remained lower than peers, as indicated in the operating
profit to RWA ratio of 1.4% in 2019 (versus Fitch-rated private
bank peers of 2.1%). Fitch also expects PNB's profitability to
weaken in the near- to medium-term due to the lower-interest-rate
environment, slower credit growth, and higher credit charges from
soured loans. Consequently, Fitch has lowered its earnings and
profitability mid-point to 'bb-' with a negative outlook.

PNB's common equity Tier 1 ratio of 14.1% at end-2019 provides
moderate loss-absorption buffers to withstand credit stress, and
Fitch sees limited risks of capital erosion under its base-case
projections of continued profitability. Nevertheless, Fitch has
lowered the bank's capitalisation and leverage mid-point to 'bb' as
its current capital ratio is no longer commensurate with a 'bbb-'
score under the 'bb' category operating environment score as per
Fitch's criteria.

PNB's loan to deposit ratio of 79% and liquidity coverage ratio of
128% at end-2019 underlines the bank's satisfactory liquidity
position. Lower reserve requirements, together with slower credit
growth, should help to support funding conditions in the near term,
with central bank liquidity support acting as a backstop should
conditions turn more severe.

RATING SENSITIVITIES

IDRS, VR, SUPPORT AND SUPPORT RATING FLOOR

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

PNB's Support Rating Floor and VR are currently at the same level.
This implies that a downgrade in the SRF - potentially as a result
of a downgrade in the sovereign rating or if Fitch perceives the
state's propensity to support the bank to have weakened - may not
lead to a downgrade in its IDRs unless its VR also weakens.
Conversely, a downgrade in PNB's VR would not result in a downgrade
in its IDR unless the SRF is also downgraded.

Fitch may downgrade the bank's VR to 'bb-' if the deterioration in
the Philippines' economic environment is worse than expected and
leads to weakening asset quality and profitability to levels that
exceed its base forecasts: that is, if the NPL ratio rises and
stays above 5% for an extended period of time and/or if its
operating profit/RWA trends below 1.25% on a sustained basis.

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

An upgrade in the sovereign rating may lead to similar positive
rating action on the SRF and IDRs, provided that the state's
propensity to support the bank also improves. This could result
from the bank's growing systemic importance as indicated by
improving market shares, or stronger and more consistent statements
of support to the banking system from the state.

PNB's IDR could also be upgraded if Fitch sees material
strengthening in its Standalone Credit Profile. Upgrade prospects,
however, are unlikely in the near term, given the weak economic
outlook.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions
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.

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).

Philippine National Bank

  - LT IDR BB; Downgrade

  - ST IDR B; Affirmed

  - Viability bb; Downgrade

  - Support 3; Affirmed

  - Support Floor BB; Affirmed



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

GOLDEN ENERGY: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Rating of
Golden Energy and Resources Limited at 'B+'. The Outlook is Stable.
The agency also affirmed GEAR's senior unsecured US dollar bond at
'B+' with a 'RR4' Recovery Rating.

The affirmation reflects GEAR's more diversified business profile
with acquisition of majority stake in Stanmore Coal Limited - an
Australia-based metallurgical coal-mining company. The acquisition
is expected to support improvement in the group's credit profile
over the medium term, although contribution to GEAR's cash flow is
likely to remain minimal over the next two years.

Fitch has lowered its coal price and volume assumptions for GEAR's
key subsidiary, Golden Energy Mines Tbk (GEMS, B+/Stable). Fitch
expects GEMS's coal volumes to fall by 10% to 27.5 million tonnes
(mt) in 2020, following a coronavirus-related fall in energy
demand. Fitch expects GEMS's volume to rise gradually, to 32.5mt in
2021 and further increase by about 4mt per annum over the following
two years. Lower selling prices in 2020 follows the revision to its
commodity price assumptions.

GEAR's rating is based on the credit metrics with proportionate
consolidation of its 67%-owned GEMS, as Fitch assesses GEAR's
linkage with GEMS as moderate and full consolidation of Stanmore
adjusted for minority leakages. The Recovery Rating of 'RR4'
reflects average recovery prospect for its US dollar bondholders.

KEY RATING DRIVERS

Moderate Linkages with GEMS: Fitch maintains its assessment of
moderate linkages between GEAR and GEMS under Fitch's Parent and
Subsidiary Rating Linkage criteria. GEAR retains majority
representation over GEMS's board, and is involved in managing
GEMS's operation. GEAR's standalone operations are not significant
and it solely depends on dividends from its subsidiaries, primarily
GEMS, to service the debt at its level.

An agreement between GEMS's shareholders ensures that the company
will maximise profit distribution by paying at least 80% of its
free cash flow as dividends. However, GMR Coal Resources Pte. Ltd,
which owns 30% of GEMS, has also appointed key management personnel
and has veto power in major corporate transactions.

Stanmore Acquisition to Support Diversification: Fitch expects
acquisition of the controlling stake in Stanmore to support GEAR's
diversification efforts. Fitch expects Stanmore to contribute to
about 20%-25% of the group's EBITDA. However, Fitch expects
Stanmore to pay minimal dividends over the next three to four years
given its capex plans to increases its production volumes.
Stanmore's is a small met coal producer (FY19 production: 2.5mt)
with healthy financial profile reflected in its net cash position.

Stanmore Fully Consolidated: GEAR is acquiring a majority stake in
Stanmore together with Ascend Global, a Singapore-based investment
management fund, with GEAR indirectly holding a maximum of 60% in
Stanmore; Ascend will indirectly fund and acquire all shareholdings
beyond 60% in Stanmore obtained from the ongoing open offer. Fitch
will fully consolidate Stanmore with GEAR in light GEAR's position
as the strategic investor after adjusting for any leakages to other
minority interests. The company acquired a 32% additional stake
(end-2019: 28%) in Stanmore for AUD82 million in 2020.

Temporary Volume Decline at GEMS: Fitch expects GEMS's sales volume
to fall by about 10% to 27.5mt in 2020 (2019: 30.8mt) due to weaker
demand on account of the economic slowdown caused by the
coronavirus pandemic. This is down from its original expectation of
a growth to 36mt in 2020. Fitch expects the company to maintain its
growth trajectory after 2020, reaching close to its target peak
production volumes of around 40mt by 2023.

GEMS's production base has grown significantly over the last few
years, expanding by about 8mt in just 2019 from 22.6mt in 2018.
GEMS does not require any significant infrastructure enhancement to
support its volume growth as its own port is able to support
shipping of about 44mt a year. Fitch expects the company to reduce
capex to about USD10 million in 2020 (2019: USD23 million) and then
increase it to about USD25 million a year starting 2021, mainly to
upgrade the capacity of the hauling roads and crushers. Decline in
Profitability: Fitch expects GEMS's EBITDA per tonne to be between
USD3.1/tonne-USD3.5/tonne in 2020 based on its price assumptions
before rising back to remain between USD4/tonne and USD5/tonne
(2019: USD4/tonne, 2018: USD6.8/tonne), over the next three years.
The decline in the profitability is in line with the industry,
although this is partially offset by the decline in fuel prices.
Consequently, Fitch expects GEMS to have a net debt position
starting 2020 through its forecast period, as opposed to a neutral
position in 2019.

GEMS Limited Mine Diversity: The mine PT Borneo Indobara accounts
for more than 90% of GEMS's total production and above 65% of the
proven and probable (2P) reserves. BIB's production ramp-up plans
means the contribution from GEMS's other mines will remain small.
The reserve concentration risk is partly offset by the geographical
diversification of their reserves, with about 30% of their 2P
reserves outside the island of Kalimantan. In terms of operations,
Fitch believes the risk is mitigated by its contracts with leading
Indonesian mining contractors, such as PT Saptaindra Sejati (a
subsidiary of PT Adaro Energy Tbk) and PT Putra Perkasa Abadi. GEMS
benefits from BIB's competitive cost structure, given its low strip
ratio of 4x, coupled with short haulage requirements.

Long Reserve Life: GEMS has one of the largest reserves compared
with its coal-mining peers in Indonesia. GEMS's reserves are the
fourth-largest in Indonesia, with proven reserves of around 806mt
at end-2019 (end-December 2018: 818mt), or a reserve life of 27
years based on its 2019 total expected production. GEMS's
acquisition of the PT Barasentosa Lestari mine in the second half
of 2018 had further improved its reserve base by adding 150mt of
proven reserves. GEMS's BIB mine holds 576mt of the proven
reserves, with a second-generation licence valid until 2036.

Adequate Financial profile: Fitch expects GEAR's consolidated
financial profile to improve from 2021 after weakening marginally
in 2020. Stanmore's net cash position and modest earnings
expectations post 2020 should support the group's financial profile
over the medium term, in Fitch's view. Fitch expects GEAR's
consolidated group leverage, (with proportionate consolidation of
GEMS and full consolidation of Stanmore adjusted for minority
interests) (net debt/EBITDA) to fall to below 1.5x in 2021, after
rising to around 2.0x in 2020 (2019: 1.8x). Fitch  also expects
GEAR's holding company standalone interest cover to improve to
about 3.0x in 2021, after weakening in 2019 and 2020 to around
1.5x.

DERIVATION SUMMARY

The ratings of GEAR are based on the financial metrics of the
group, adjusted to proportionately consolidate GEMS to incorporate
the presence and influence of significant minority shareholding.
The ratings factors in the group's adequate financial profile,
large reserve base of both its key assets, low-cost position of
GEMS and limited but improving scale of operations and record.

PT Indika Energy Tbk's (BB-/Negative) has more integrated
operations across the thermal coal value chain, but GEAR benefits
from improving diversification after acquiring Stanmore, although
the latter's contribution to cash flow will be minimal in the next
two to three years. However, Indika's larger scale and
well-established operations justify the one-notch difference in
their IDRs, as GEAR's key assets, GEMS and Stanmore, are still
boosting production. The Negative Outlook on Indika reflects the
limited headroom in its rating because of its expectations of
weakening financial profile following its revision in coal price
and volume assumptions.

In comparison with PT Bayan Resources Tbk (BB-/Stable), GEAR's
business profile benefits from diversification into hard coking
coal. Bayan's similar scale as GEMS but better cost structure
supports its stronger operating cash flow, explaining the one-notch
differential in their ratings. Both companies have strong financial
profiles.

KEY ASSUMPTIONS

  - Index coal prices in line with Fitch's mid-cycle commodity
price assumptions, adjusted for the difference in CV (thermal coal
average Newcastle 6,000 kcal/kg, Free on board: USD63/tonne in 2020
and USD72/tonne in 2021, USD72/tonne in 2022 and USD70/tonne
thereafter) and hard coking coal (Australia premium spot, FOB): USD
140/tonne throughout its forecast period.

  - GEMS's total volume of coal sales to decline by 10% to 27.5mt
in 2020; thereafter increasing by 3mt-5mt a year until 2023,
reaching 40mt by 2023.

  - Capex incurred by GEMS at USD10 million in 2020 and USD25
million during 2021-2023. - Outflow of USD90 million in 2020 at
GEAR for the acquisition of Stanmore and Ravenswood gold mine.

  - Met coal sales volumes of 1.9mt in 2020, 2.5mt in 2021 and
2.9mt in 2022, and EBITDA contribution of around USD30 million-60
million from Stanmore from 2020-2023.

  - Stanmore capex of USD25 million-30 million during 2020-2022,
declining to USD12 million in 2023.

Key Recovery Rating Assumptions:

Recovery analysis for GEAR is on a going-concern basis in case of
bankruptcy and assumes that the both their subsidiaries, GEMS and
Stanmore, would be reorganised and not liquidated. Fitch has
assumed a 10% discount to enterprise value to account for
bankruptcy-related administrative claims.

Going-Concern Approach

GEMS: The GC EBITDA estimate of USD106 million (FY19E
USD130million) reflects Fitch's view of a sustainable,
post-reorganisation EBITDA level upon which Fitch bases the
enterprise valuation. Fitch has taken a lower sustainable EBITDA as
a restructuring would most likely be a result of a coal market
downturn.

An EV multiple of 3.5x EBITDA is applied to the GC EBITDA to
calculate a post-reorganisation EV. The choice of this multiple
takes into consideration the EV/EBITDA multiple used in M&A
transactions in the sector through the commodity cycle.

In the recovery analysis, Fitch assumes repayment of all the debt
at GEMS's level, which is all senior secured bank debt. Fitch has
assumed 67% of the remaining equity value (post the repayment of
subsidiary debt) for the repayment of debt at GEAR level.

Stanmore: The GC EBITDA estimate of USD40 million (FY20E: USD
53million) reflects Fitch's view of a sustainable,
post-reorganisation EBITDA level upon which Fitch bases the EV.
Fitch has taken a lower sustainable EBITDA as a restructuring would
most likely be the result of a downturn in the coal market.

An EV multiple of 3.5x EBITDA is applied to the GC EBITDA to
calculate a post-reorganisation EV. The choice of this multiple
takes into consideration the EV/EBITDA multiple used in M&A
transactions in the sector through the commodity cycle.

In the recovery analysis, Fitch assumes drawdown and repayment of
Stanmore's committed working capital facility. Fitch has assumed
60% of the remaining equity value (post the repayment of subsidiary
debt) for the repayment of debt at GEAR level.

This results in a Recovery Rating of 'RR2', but a soft cap of 'RR4'
is applied as the key assets are located in Indonesia, which is a
group D country.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

  - GEAR's holding company's standalone EBITDA/interest cover of
above 3.0x on a sustained basis;

  - Sustainable improvement in the scale of operations for the
group;

  - Net adjusted debt/EBITDAR of less than 2.5x, based on a
proportionate consolidation of GEMS and full consolidation of
Stanmore adjusted for minority interests.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

  - GEAR's holding company's standalone EBITDA/interest cover of
below 2.0x;

  - Net adjusted debt/EBITDAR of more than 3.5x, based on a
proportionate consolidation of GEMS and full consolidation of
Stanmore adjusted for minority interests.

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 fits 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

Adequate Liquidity: GEAR group's healthy cash flow generation and
well-spread debt maturities underpin the adequate liquidity. The
group had USD320 million of debt as of end-2019 (end-2018: USD269
million), which included USD38 million of short-term debt and USD23
million of debt maturing in 2020 compared with the readily
available cash of USD189 million. GEAR's debt is expected to
increase by about USD45million in 2020, mainly to fund the two
investments, Stanmore and Ravenswood, with part of the USD90
million outflow funded from sale of its investments in Westgold.

The group's debt, both at GEMS and the holding-company level, has a
gradual repayment structure except for the bond repayment in 2022.
Fitch expects the group to require partial refinancing of the bond,
before 2022. Fitch regards the refinancing risk as low, taking into
account GEAR's adequate credit profile and access to banks and
capital markets. Both GEAR's subsidiaries, GEMS and Stanmore, have
outstanding committed facilities for working capital purposes. GEMS
also has an outstanding USD30 million facility, which it can use
for capex.

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).

OCEAN TANKERS: High Court Grants Interim Judicial Management
------------------------------------------------------------
The Business Times reports that following in the footsteps of its
troubled sister company Hin Leong Trading (HLT), Ocean Tankers Pte
Ltd was granted interim judicial management (IJM) by the High Court
on May 12.

BT says the court has appointed Ernst & Young's Angela Ee and
Purandar Rao as the interim judicial managers for the shipping
giant.

Based on court documents, Ocean Tankers is exposed to potential
claims estimated at a staggering US$2.07 billion involving bills of
lading (BOL) that it had issued in relation to HLT's trades after
the cargoes on board the vessels were sold when the oil trader hit
troubled waters, BT relates.

According to BT, sources said there were just over 35 "interested
parties" -- mostly creditors -- present at the virtual hearing on
May 12 that lasted about three hours and was heard before High
Court Judge Kannan Ramesh.

This comes two weeks after the court granted an IJM order to HLT
and appointed Goh Thien Phong and Chan Kheng Tek of
PricewaterhouseCoopers Advisory Services as interim judicial
managers, BT notes.

Similarly, the interim judicial managers for Ocean Tankers have
eight weeks to file a preliminary report which will include an
assessment on whether Ocean Tankers can be restructured or
rehabilitated, BT states.

Ocean Tankers, which charters and manages over 150 vessels
including very large crude carriers (VLCCs) and is one of the
world's largest oil-tanker operators, is helmed by chief executive
Evan Lim Chee Meng -- son of Hin Leong's founder, low-key tycoon
Lim Oon Kuin, better known as OK Lim, according to BT.

It counts oil majors Exxon Mobil, Shell and BP and giant traders
such as Vitol, Lukoil, and Glencore as well as China's state-owned
enterprises Unipec and Petrochina as customers.

Together with Ocean Bunkering Services -- the city state's
third-largest marine fuel supplier by volume last year -- Hin Leong
group is a behemoth downstream player in Singapore's key oil hub,
providing everything from oil trading, terminalling and storage,
bunker supply, lubricants, inland transportation services to diesel
retail and marine logistics.

It is no wonder then that the cash woes of HLT, Singapore's largest
oil trader, with debts of nearly US$4 billion have rocked the
tighly-knit commodity trading circles here amid a
pandemic-triggered oil slump, BT says. "No one else is bigger than
him (OK Lim). For a lot of bunker suppliers and oil traders here,
he is a big brother who is now in trouble. The amount of debt has
shocked the sector," BT quotes a long-time maritime expert as
saying.

HLT's headache is also Ocean Tankers, not least because the
businesses are deeply interconnected, BT says.

BT relates that court documents revealed Ocean Tankers had a
"substantial amount of business" with HLT. HLT, the group's
flagship, regularly nominated Ocean Tankers' vessels to carry out
contracts for a majority of its sale and purchase of oil.

However, these cargoes were discharged against instructions or
letters of indemnity issued by HLT, hence exposing Ocean Tankers --
the BOL issuer -- to claims from BOL holders, be it banks which
issued financing facilities based on the inventory or buyers and
sellers of the cargo.

In his affidavit to support Ocean Tankers' JM application, Mr Evan
Lim said Ocean Tankers will be unable to pay its debt if there were
demands from BOL holders, BT relays.

Most of Ocean Tankers' fleet of vessels is bareboat chartered from
Xihe Holdings and its units, which are fully owned by the Lim
family. Mr. Evan Lim said the entities under Xihe Group are Ocean
Tankers' major creditors with some US$314 million owing including
US$208 million in company loans.

Both HLT and Ocean Tankers had earlier in April sought a six-month
debt moratorium from the court but withdrew the applications and
filed for JM instead after creditors pushed for a court-supervised
restructuring when it came to light that HLT had hid from its
financial statements losses of US$800 million it had incurred from
futures trading, recalls BT.

Singapore's Commercial Affairs Department has also launched a probe
into HLT.

According to BT, Mr. Evan Lim said in the company's application
that the JM would give comfort to the market in dealing with Ocean
Tankers as the management would be in the hands of court-appointed
officers, and "thus avoid the perception of being linked to
financial troubles of HLT".

However, he said that while the shipping firm's business will be
better able to continue under the moratorium accorded by the JM
regime, the business may not return to levels prior to the onset of
the Covid-19 pandemic.

Also, he added that it will be difficult to "completely shake off"
the market perception of Ocean Tankers' links to HLT's troubles. As
the shipping firm may not be able to fully meet all operational
costs and expenses, he added that Ocean Tankers was mulling the
sale of some non-core vessels to raise cash.

Rajah & Tann is the legal adviser for both HLT and Ocean Tankers,
BT discloses.

Meanwhile, BT understands that Mr. OK Lim has hired Senior Counsel
Chelva Rajah while his children -- Mr. Evan Lim and daughter Lim
Huey Ching, who are HLT directors -- have hired Senior Counsel
Kenneth Tan to represent them in the negotiations with the
creditors.

BT further understands that Ocean Tankers is also seeking for the
JM application and protection from any charge or claims during the
JM process to be extended to the company's property outside
Singapore. This, according to a source, was a late addition in the
company's JM application and the court made no order on the
matter.

                         About Ocean Tankers

Ocean Tankers Pte. Ltd. -- http://www.oceantankers.com.sg/
--provides marine transportation services. The Company offers
tanker management, ship-to-ship transfer, and marine support
vessels services. Ocean Tankers operates in Singapore.



=================
S R I   L A N K A
=================

PEOPLE'S LEASING: Fitch Alters Outlook on 'B-' LT IDR to Negative
-----------------------------------------------------------------
Fitch Ratings has revised the Outlook on Sri Lanka-based People's
Leasing & Finance PLC's Long-Term Foreign- and Local-Currency
Issuer Default Ratings to Negative, from Stable, and has affirmed
the ratings at 'B-'.

This follows the April 24, 2020 downgrade of Sri Lanka's sovereign
rating to 'B-', from 'B', with a Negative Outlook to reflect the
impact of the escalating coronavirus pandemic on the economy.
Fitch forecasts Sri Lanka's economy to contract by 1.0% in 2020,
from 2.3% growth in 2019, due to the impact of the coronavirus
pandemic. Its base-case scenario assumes that any economic recovery
later this year will be gradual, with limited growth prospects for
the non-bank financial institutions sector through 2020 and 2021.
Fitch expects NBFIs' financial profiles to come under strain from a
more challenging operating environment, and for their key credit
metrics to be weaker than its previous expectations,
notwithstanding regulatory relief.

The Negative Outlook reflects the increased risk to the company's
financial profile from the pandemic and its assessment that the
sovereign's weakened credit profile could constrain PLC's rating if
it deteriorates further.

People's Leasing & Finance PLC

  - LT IDR B-; Affirmed

  - LC LT IDR B-; Affirmed

KEY RATING DRIVERS

LC's IDRs are driven by its standalone profile, which takes into
account its established profile as one of the largest local finance
and leasing companies, the benefits to its franchise from links to
the government-backed People's Bank (Sri Lanka), balanced by
exposure to higher-risk borrowers that renders its asset quality
more susceptible to operating conditions.

Fitch has lowered its assessment of the operating environment for
Sri Lankan FLCs to 'b-'/negative, from 'b'/negative, to incorporate
the significant economic impact from the pandemic and its negative
implications for FLCs. FLCs would be affected by the impact of the
pandemic on individuals and businesses, potential further
devaluation of the Sri Lankan rupee, any extensions of restrictions
on vehicle importation, and increased taxes on certain vehicle
classes. Fitch maintains its outlook on the operating environment
at negative to reflect the possibility of further downside risk
should the potential impact of the economic fallout from the
pandemic become more pronounced or prolonged. Its assessment also
reflects the negative action on the sovereign, whose rating
constrains its assessment of FLCs' operating environment.

Fitch sees heightened asset-quality risk for PLC from the
deteriorating operating environment in light of its underlying loan
exposure, which are sensitive to economic cycles. Fitch expects
asset-quality metrics to deteriorate further in the near- to
medium-term due to the weakening economic environment. The
regulatory gross non-performing loan ratio (based on six-month
arrears) had already deteriorated to 6.6% in the first half of the
financial year ending March 2020 (FY20), from 4.6% at FYE19, amid a
sluggish economic environment that was exacerbated by the April
2019 terrorist attacks.

Fitch also expects earnings and profitability to weaken due to
pressure on income generation through lower net interest margins,
depressed loan expansion and potentially higher credit costs as
asset quality deteriorates. Nonetheless, earnings present some
buffer against higher credit costs and Fitch expects PLC to stay
profitable in the near term. Its largely secured loan portfolio
should also help to mitigate credit costs and loan losses, despite
anticipated higher delinquencies.

Downside risk to its asset quality and earnings forecasts is high,
given the considerable pressure on near-term operating conditions.
This raises the risk of potential capital impairment should
conditions worsen further relative to its expectations. However,
PLC's improved leverage - as indicated by debt/tangible equity of
3.9x at 9MFY20 (FYE19: 4.3x) - provides some buffer for loss
absorption.

PLC's funding and liquidity profile benefits from its recognised
relationship with People's Bank, which supports the stability of
its deposit base and wholesale funding access. Nonetheless, there
is potential for its liquidity position to weaken along with that
of FLCs in general under the current challenging circumstances.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

An upgrade of PLC's IDRs is not probable in the near term due to
the pressure on the sovereign rating and operating environment. In
the medium to longer term, any upgrade would hinge on a meaningful
strengthening in the operating environment, leading to a
significant improvement in the company's underlying asset quality
and contributing to a sustainably stronger earnings outlook and
more stable domestic funding and liquidity conditions - assuming
PLC's existing rating strengths are sustained.

PLC is majority owned by People's Bank (Sri Lanka); Fitch expects
the bank to have a high propensity to support its subsidiary in
times of need. Fitch does not give additional credit for potential
extraordinary support from the parent in PLC's ratings, as this
would ultimately be linked to the sovereign's credit strength. A
higher sovereign rating, indicating an improved ability to provide
extraordinary support to state-owned entities and their
subsidiaries, such as PLC, may result in a higher support-driven
rating for PLC - assuming that Fitch believes its parent remains
motivated to provide such support. However, such an outcome is not
probable in the near term given the pressure on the sovereign
rating.

The Outlook may be revised to Stable if Fitch assesses that the
downside risk to PLC's operation has stabilised, its operating
performance remains broadly consistent with Fitch's expectations
and the sovereign rating Outlook is also revised to Stable.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

PLC's IDR is most sensitive to deterioration in the operating
environment beyond its base-case expectation, which could further
weaken its key credit metrics, particularly profitability and
capitalisation/leverage. This could arise through a structural
deterioration in asset quality that leads to sustained losses and
capital impairment and/or if funding access is significantly
limited.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions
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.

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).



===========
T A I W A N
===========

TAICHUNG COMMERCIAL: Fitch Affirms BB+/B Issuer Default Ratings
---------------------------------------------------------------
Fitch Ratings has taken the following rating actions after a
periodic peer review of four private banks in Taiwan:

  - Affirmed King's Town Bank's ratings and revised its rating
Outlook to Negative from Stable.

  - Affirmed all ratings of Far Eastern International Bank, The
Shanghai Commercial & Savings Bank, Ltd., and Taichung Commercial
Bank Company Limited with a Stable Outlook.

Fitch has revised the outlook on the 'a' operating environment
score for Taiwanese banks to negative from stable, reflecting the
large demand shock to Taiwan's export-dependent economy from the
coronavirus pandemic. The substantially weaker global economic
environment will pressure the banks' financial performance and
their borrowers' repayment ability even though the operating
environment score is not a high influence factor driving the credit
profiles of these banks.

The agency forecasts a deep global recession with the world economy
contracting by 3.9% in 2020 and Taiwan's GDP growth slowing to 0%
in 2020 from 2.7% in 2019. Under this base case, Fitch expects the
economic downturn in 1H20 to be followed by a partial stabilisation
in 3Q20 and a gradual recovery beginning in 4Q20, but risks to
these forecasts remain and are outlined in its report Fitch Ratings
Coronavirus Scenarios: Baseline and Downside Cases -- Update,
published April 29, 2020.

The Negative Outlook on KTB reflects the rising pressure on its
ratings due to potentially larger erosion of risk buffers compared
with peers due to its larger investment book, loan concentration
risks and rapid growth in SME loans in the past few years. The
Stable Outlook on FEIB, SCSB and Taichung reflects its expectations
these banks will maintain adequate loss-absorption buffers that are
commensurate with the maintenance of their ratings.

Fitch expects ample system-wide liquidity as well as strengthened
loan-loss allowances and capital levels at most banks to counter
some of the pressures from the challenging operating environment.
Taiwan was less susceptible to a global liquidity flight in earlier
episodes of market stress, both in terms of the Taiwan and US
dollars, backed by its strong foreign-exchange reserves and robust
system liquidity. Furthermore, Fitch expects the domestic property
market to remain supported by the return of manufacturing
activities to Taiwan from overseas, which underpins the credit
quality of its rated banks' property-related exposures.
Nonetheless, these banks continue to face concentration risks as
their loans are highly focused on property-related sectors,
including mortgage and construction loans, and the majority of
their loan collateral is in real estate.

KEY RATING DRIVERS

ISSUER DEFAULT RATINGS AND VIABILITY RATINGS

The ratings of the four banks in this review are driven by their
intrinsic credit profiles.

Far Eastern International Bank

The rating affirmation and Stable Outlook is driven by the bank's
adequate capital, with a common equity Tier 1 ratio of 10.6% at
end-2019, and liquidity buffers, with a loan-to-deposit ratio of
75%, relative to its ratings. Fitch believes these buffers are
sufficient to counterbalance near-term pressure on asset quality
and profitability arising from the narrowing margin between Taiwan
and US dollars, subdued growth in fee income, rising credit costs
and mark-to-market losses on its credit derivatives trading
position.

King's Town Bank

The Negative Outlook on KTB's VR-driven IDR reflects its
expectation that the economic fallout from the pandemic will
increase its earnings volatility (operating profit/risk-weighted
assets: 1.6% in 2019) and capitalisation pressures (CET1: 14.6% at
end-2019) due to mark-to-market adjustments on its above-sector
investment book. This is in addition to the profitability
challenges from subdued credit growth, narrowing margins, muted
growth in fees, and rising credit costs for increased loan
impairments. That said, the rating affirmation is supported by
capitalisation that is higher than that of peers and its sound
liquidity profile, counterbalancing near-term pressures on asset
quality and profitability.

The Shanghai Commercial & Savings Bank, Ltd.

The bank's ratings have been affirmed with a Stable Outlook,
underpinned by its unique and established cross-strait business
model, consistent risk appetite as well as its expectation that its
capital and liquidity strengths will help mitigate the external
shock on its asset quality and profitability. There is some rating
headroom based on the bank's financial performance metrics to
support its current ratings, although Fitch expects the severe
economic downturn in the region, including in greater China, to
pressure SCSB's asset quality (impaired-loan ratio of 0.4% at
end-2019) and profitability (operating profit/risk-weighted assets
ratio of 1.6%). SCSB serves Taiwanese SMEs through its greater
China platform, including its Hong Kong subsidiary, Shanghai
Commercial Bank Limited (SCB, A-/Stable/a-), and its Chinese
partner, Bank of Shanghai. SCB contributed over 50% of SCSB's
consolidated profit and 38% of assets in 2019.

Taichung Commercial Bank Company Limited

The affirmation of Taichung's 'BB+' IDR reflects its modest company
profile with high concentration on the domestic property sector and
below-average asset quality and profitability. The bank's
impaired-loan ratio of 2.2% at end-2019 was higher than the
domestic peer average of 1%. Its operating profit/risk-weighted
assets ratio improved to 1.1% in 2019, although still slightly
lower than the local peer average of 1.2%. The Stable Outlook
reflects its view that Taichung's improved capitalisation and its
stable funding and liquidity profile will help the bank to maintain
its rating despite the economic challenges from the coronavirus
outbreak.

NATIONAL RATINGS

SCSB's 'AA(twn)' rating is at the high end of the national rating
scale, reflecting very low default risks relative to domestic
issuers. The other three rated banks' National Ratings are in the
'A' category, reflecting low default risks relative to issuers in
Taiwan.

FEIB, KTB, SCSB and Taichung

The Outlook for KTB's National Rating has been revised to Negative
from Stable, in line with the revision on the Outlook for its IDR.

The Stable Outlooks on the National Ratings of FEIB, SCSB and
Taichung are in line with the Outlook on their IDRs. The
affirmation of these four banks' National Ratings is an indication
that there is no change in Fitch's view of their credit profiles
relative to Taiwan's national-rating universe.

SUPPORT RATING AND SUPPORT RATING FLOOR

FEIB, Taichung and SCSB have a Support Rating of '4' and a Support
Rating Floor of 'B+', reflecting their low systemic importance.

KTB's Support Rating is '5' and its Support Rating Floor is 'No
Floor' due to its lower systemic importance.

SUBORDINATED DEBT

FEIB and Taichung's Basel III-compliant subordinated debt is rated
two notches below their National Long-Term Ratings, which are
anchored by their respective VRs, to reflect the bonds' limited
recovery prospects. Bondholders risk significant loss at the point
of non-viability, which is reached upon government receivership or
a regulatory order for resolution or liquidation, because the bonds
would rank equally with common shares in Taiwan.

RATING SENSITIVITIES

IDRS AND VIABILITY RATINGS

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

FEIB

FEIB's ratings upside is limited, unless the bank can significantly
improve its franchise and profitability, for example, operating
profit/risk-weighted assets rising towards 1.6%, without
sacrificing asset quality, while sustaining improvement in
capitalisation, including the CET1 ratio rising above 12%, through
more managed growth.

KTB

KTB's rating Outlook could be revised back to Stable if the bank
can demonstrate improved stability in earnings, with operating
profit/risk-weighted assets sustained at around 1.6%, and maintain
satisfactory capitalisation on a sustained basis, including the
CET1 ratio rising above 15%.

SCSB

Positive rating action for SCSB is unlikely in the near term, as it
is already the highest rated among local peers and Fitch has a
negative outlook on Taiwan's operating environment.

Taichung

Positive rating action could be triggered in the longer term if
Taichung's operating profit/risk-weighted assets ratio increases
closer to 1.2% on a sustained basis, possibly through a more
diversified revenue mix, and/or its CET1 ratio rises towards 11% on
a sustained basis.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

FEIB

Excessive risk taking in financial-market trading and investment
could render its credit profile more vulnerable relative to peers
and pressure its ratings, given its above-peer credit derivatives
trading. A significant rise in the unemployment rate could weigh
further on the credit quality of its larger mortgages (around 47%
of total loans at end-2019), profitability and ratings. A downgrade
could arise from further and sustained deterioration in asset
quality (impaired loan ratio rising to above 4%), profitability
(operating profit/risk-weighted assets falling sustainably below
0.75%) and/or capitalisation (CET1 ratio falling towards 10%).

KTB

A downgrade could arise from rising market fluctuations and/or
provisioning, leading to greater erosion in profitability, for
example, if the operating profit/risk-weighted assets falls
sustainably below 1.2%, which results in capital erosion, with the
CET1 ratio falling towards 12%, and/or increased vulnerability to
asset quality, with the impaired-loan ratio rising to over 3%, in
light of the size of its investments and loan concentration risks.

SCSB

A downgrade in the VR of its Hong Kong subsidiary, SCB, which
accounts for 38% of SCSB's assets, or a delayed economic recovery
in the region beyond 2H20 as a result of a prolonged pandemic could
add pressure on SCSB's asset quality (impaired-loan ratio rising to
above 2%), profitability (operating profit/risk-weighted assets
sustainably below 1.6%), capitalisation (Fitch Core Capital ratio
falls towards 12%) and in turn, SCSB's ratings. Fitch uses the
Fitch Core Capital ratio, instead of the CET1 ratio, as the
minority interest at its Hong Kong subsidiary is partially
recognised in the CET1 ratio under the Basel framework, whereas
Fitch bases its analysis on the consolidated financial statement,
including total assets and total liabilities of the Hong Kong
subsidiary.

Taichung

Negative rating action on Taichung's IDRs and VR could arise if the
bank incurred sizeable losses, resulting in the CET1 ratio falling
below 9% for a sustained period.

NATIONAL RATINGS

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

Changes in Fitch's perception of the rated banks' credit profiles
relative to the national-rating universe in Taiwan could affect
their National Ratings. An upgrade of the National Ratings for KTB
is unlikely in the near term, given its Negative rating Outlook.
Strengthening in the overall credit profiles of FEIB, SCSB and
Taichung on a relative basis to the national-rating universe could
lead to an upgrade of their National Ratings.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

A downgrade of the rated banks' National Ratings would arise from a
weakening in their overall credit profiles on a relative basis to
the national-rating universe.

SUPPORT RATING AND SUPPORT RATING FLOOR

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

The Support Rating Floor could be upgraded if Fitch assesses that
there is a higher propensity of the Taiwan government (AA-/Stable)
to provide timely extraordinary support to FEIB, KTB, SCSB and
Taichung. However, Fitch does not expect such a change over the
medium term.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

Fitch may take negative action on the Support Ratings and Support
Rating Floors for FEIB, SCSB and Taichung if Fitch believes there
is lower propensity for the state to provide extraordinary support
to them. There is no downside for KTB's Support Rating and Support
Rating Floor as they are already at the lowest level.

SUBORDINATED DEBT

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

The subordinated debt ratings of FEIB and Taichung are sensitive to
the same considerations that might affect their VRs or National
Long-Term Ratings. An upgrade of the VR or National Long-Term
Rating, the anchor for the subordinated debt rating, could lead to
an upgrade of FEIB's and Taichung's subordinated debt ratings.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

A downgrade of their VRs or National Ratings could lead to a
downgrade of the subordinated debt ratings of FEIB and Taichung.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Financial Institutions
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.

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

King's Town Bank has an ESG Relevance Score of '4' for Governance
Structure due to the tight control of top management that affects
the bank's strategic planning and may compromise the interests of
minority shareholders, which has a negative impact on the credit
profile, and is relevant to the rating in conjunction with other
factors.

Except for the matters discussed, 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).

Taichung Commercial Bank Company Limited

  - LT IDR BB+; Affirmed

  - ST IDR B; Affirmed

  - Natl LT A-(twn); Affirmed

  - Natl ST F1(twn); Affirmed

  - Viability bb+; Affirmed

  - Support 4; Affirmed

  - Support Floor B+; Affirmed

  - Subordinated; Natl LT BBB(twn); Affirmed

King's Town Bank

  - LT IDR BBB; Affirmed

  - ST IDR F3; Affirmed

  - Natl LT A+(twn); Affirmed

  - Natl ST F1(twn); Affirmed

  - Viability bbb; Affirmed

  - Support 5; Affirmed

  - Support Floor NF; Affirmed

The Shanghai Commercial & Savings Bank, Ltd.

  - LT IDR A-; Affirmed

  - ST IDR F2; Affirmed

  - Natl LT AA(twn); Affirmed

  - Natl ST F1+(twn); Affirmed

  - Viability a-; Affirmed

  - Support 4; Affirmed

  - Support Floor B+; Affirmed

Far Eastern International Bank

  - LT IDR BBB; Affirmed

  - ST IDR F3; Affirmed

  - Natl LT A+(twn); Affirmed

  - Natl ST F1(twn); Affirmed

  - Viability bbb; Affirmed

  - Support 4; Affirmed

  - Support Floor B+; Affirmed

  - Subordinated; Natl LT A-(twn); Affirmed


                           *********


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

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

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

This material is copyrighted and any commercial use, resale or
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