/raid1/www/Hosts/bankrupt/TCRAP_Public/210125.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
Monday, January 25, 2021, Vol. 24, No. 12
Headlines
A U S T R A L I A
BARRELHOUSE PAYROLL: Second Creditors' Meeting Set for Feb. 1
BLOODY MARY: Stone's Throw Creditors Unlikely to Recover Payment
CASTLE ROCK: Second Creditors' Meeting Set for Feb. 3
DOMESTIC CAT: First Creditors' Meeting Set for Feb. 2
LEAF BUILDING: First Creditors' Meeting Set for Feb. 2
SA STRUCTURAL: First Creditors' Meeting Set for Feb. 2
STANLEY STAFFING: Second Creditors' Meeting Set for Feb. 2
[*] AUSTRALIA: 32K Tourism Businesses at Risk of Failing This Year
C H I N A
HNA GROUP: Says Risk Disposal Plan Moving Into Key Stage
MEINIAN ONEHEALTH: Moody's Completes Review, Retains B1 Rating
SUNAC CHINA: Moody's Assigns B1 Rating to New Sr. Unsec. USD Notes
SUNAC CHINA: S&P Assigns 'B+' Rating to New USD Sr. Unsec. Notes
YANZHOU COAL: Fitch Maintains 'BB-' LongTerm Foreign-Currency IDR
I N D I A
ASSOCIATED ENGINEERING: Ind-Ra Moves B+ Rating to Non-Cooperating
CH.GOWRI SHANKAR: Ind-Ra Affirms 'BB+' Long-Term Issuer Rating
F T TEXTILES: Ind-Ra Lowers Long-Term Issuer Rating to 'BB'
GMR HYDERABAD INTERNATIONAL: Fitch Affirms 'BB+' Long-Term IDR
INFRAHITE INFRA: CRISIL Keeps B+ Debt Rating in Not Cooperating
JAYA BAKERS: CRISIL Lowers Rating on INR5.4cr Term Loan to B
JAYASHEEL N SHETTY: Ind-Ra Moves 'BB' LT Rating to Non-Cooperating
JINAAM'S DRESS: Insolvency Resolution Process Case Summary
KASTUM ENGINEERS: CRISIL Keeps B+ Debt Rating in Not Cooperating
KWALITY LTD: NCLT Passes Order to Liquidate Dairy Firm
LAMBA FOOD: CRISIL Lowers Rating on INR8.50cr Cash Loan to B
MASTER KISHAN: Ind-Ra Moves 'BB-' Issuer Rating to Non-Cooperating
MUSADDILAL JEWELLERS: Insolvency Resolution Process Case Summary
NEW WIN: CRISIL Keeps C Debt Ratings in Not Cooperating Category
ORACLE HOME: CRISIL Keeps D Debt Ratings in Not Cooperating
P. D. INDUSTRIES: CRISIL Keeps B Debt Ratings in Not Cooperating
PRECISION POLYPLAST: CRISIL Keeps B+ Rating in Not Cooperating
RAJ RAJESHWARI: Insolvency Resolution Process Case Summary
RAMA RICE: CRISIL Keeps B+ Debt Rating in Not Cooperating
RYDAK SYNDICATE: Ind-Ra Moves BB+ Issuer Rating to Non-Cooperating
SHIV METTALICKS: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating
SHIVALI UDYOG: CRISIL Keeps B Debt Ratings in Not Cooperating
SUPERFINE COMPONENTS: CRISIL Keeps B Ratings in Not Cooperating
SUSHITEX INDUSTRIES: CRISIL Keeps D Ratings in Not Cooperating
SWASTIK PLASCHEM: CRISIL Cuts Rating on INR5cr Cash Loan to B
TALOD FOOD: CRISIL Keeps B+ Debt Ratings in Not Cooperating
THATIPALLI INFRA: CRISIL Keeps B+ Debt Rating in Not Cooperating
TOTEM INFRASTRUCTURE: Insolvency Resolution Process Case Summary
TRADEINOX INDUSTRIES: Insolvency Resolution Process Case Summary
TUF METALLURGICAL: CRISIL Keeps B Debt Rating in Not Cooperating
UNI PROFILES: CRISIL Keeps B Debt Ratings in Not Cooperating
UNITED ELECTRICAL: CRISIL Keeps C Debt Ratings in Not Cooperating
UNIVERSAL TUBE: CRISIL Keeps D Debt Ratings in Not Cooperating
VRAJPACK INDUSTRIES: CRISIL Keeps B+ Ratings in Not Cooperating
I N D O N E S I A
BUKIT MAKMUR: Fitch Affirms 'BB-' LongTerm Foreign-Currency IDR
PANDITA INDUSTRIES: S&P Withdraws 'B-' Issuer Credit Rating
S I N G A P O R E
AVATION PLC: S&P Downgrades LT ICR to CCC-, On Watch Negative
GRAB HOLDINGS: Moody's Completes Review, Retains B3 CFR
PUMA ENERGY: Fitch Withdraws BB-(EXP) Sr. Unsec. Bond Issue Rating
[*] SINGAPORE: Fewer Firms Wound Up Last Year in Spite of Pandemic
S O U T H K O R E A
MAGNACHIP SEMICONDUCTOR: Moody's Completes Review, Keeps B1 Rating
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A U S T R A L I A
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BARRELHOUSE PAYROLL: Second Creditors' Meeting Set for Feb. 1
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Barrelhouse
Payroll Pty Ltd has been set for Feb. 1, 2021, at 10:00 a.m. at the
offices of Hogansprowles Pty Ltd, Level 9, 60 Pitt Street, in
Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 29, 2021, at 4:00 p.m.
Michael Hogan and Brendan Copeland of HoganSprowles were appointed
as administrators of Barrelhouse Payroll on Dec. 16, 2020.
BLOODY MARY: Stone's Throw Creditors Unlikely to Recover Payment
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Creditors of a well-known bar and restaurant in Norwood are
unlikely to recover their debts despite claims the venue traded
insolvent for more than two years before its collapse.
The Bloody Mary Group had been a significant player in the South
Australian hotels industry, managing staff and negotiating pricing
with liquor suppliers for a series of hotels. But several of those
businesses collapsed while under the Bloody Mary Group's
management, according to ABC News.
They include the historic Archer Hotel in North Adelaide and the
Kincraig in Naracoorte -- both of which have since reopened under
new management.
On Oct. 2, 2020, Norwood restaurant and bar business, Stone's
Throw, also collapsed.
Andrew Langshaw of DuncanPowell was appointed as liquidator of The
Bloody Mary Group Pty Ltd on Oct. 2, 2020.
CASTLE ROCK: Second Creditors' Meeting Set for Feb. 3
-----------------------------------------------------
A second meeting of creditors in the proceedings of Castle Rock
Global Capital Pty Ltd and Davcas Investments Pty Limited has been
set for Feb. 3, 2021, at 11:00 a.m. via Zoom Webinar.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Feb. 1, 2021, at 4:00 p.m.
Geoffrey Peter Granger and Brian Raymond Silvia of Ferrier Silvia
were appointed as administrators of Castle Rock on Jan. 4, 2021.
DOMESTIC CAT: First Creditors' Meeting Set for Feb. 2
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Domestic Cat
Pty Ltd will be held on Feb. 2, 2021, at 11:00 a.m. at the offices
of Valles Accountants, Mezzanine, Level 1, 452 Flinders Street, in
Melbourne, Victoria.
Joshua Philip Taylor of Taylor Insolvency was appointed as
administrator of Domestic Cat on Jan. 20, 2021.
LEAF BUILDING: First Creditors' Meeting Set for Feb. 2
------------------------------------------------------
A first meeting of the creditors in the proceedings of Leaf
Building Group Pty Ltd will be held on Feb. 2, 2021, at 11:00 a.m.
via Zoom meeting.
Nick Combis of Vincents Chartered Accountants was appointed as
administrator of Leaf Building on Jan. 20, 2021.
SA STRUCTURAL: First Creditors' Meeting Set for Feb. 2
------------------------------------------------------
A first meeting of the creditors in the proceedings of SA
Structural Pty Ltd will be held on Feb. 2, 2021, at 2:00 p.m. at
Adelaide Town Hall, Bankquet Room, 128 King William Street, in
Adelaide, SA.
Andre Strazdins of BRI Ferrier was appointed as administrator of SA
Structural on Jan. 20, 2021.
STANLEY STAFFING: Second Creditors' Meeting Set for Feb. 2
----------------------------------------------------------
A second meeting of creditors in the proceedings of Stanley
Staffing Solutions Pty Ltd has been set for Feb. 2, 2021, at 1:00
p.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 Feb. 1, 2021, at 4:00 p.m.
Stephen Robert Dixon and Leigh Dudman of Hamilton Murphy Advisory
Pty Ltd were appointed as administrators of Stanley Staffing on
Dec. 16, 2020.
[*] AUSTRALIA: 32K Tourism Businesses at Risk of Failing This Year
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Lois Maskiell at SmartCompany reports that the embattled tourism
industry is calling for targeted support from the federal
government, as new research shows one-in-five tourism operators
could fail this year due to ongoing travel restrictions.
New research by peak industry body Tourism and Transport Forum
found 32,000 tourism businesses risk failing this year due to
ongoing coronavirus travel restrictions, SmartCompany relates
citing The Australian Financial Review.
SmartCompany says small business advocates and tourism operators
have been pushing for extra support for the $50 billion industry,
such as progressive loans and temporary wage assistance, after
JobKeeper winds down in March.
Anthea Hammon, board member at Sydney's iconic Bridge Climb and
director of Scenic World in the Blue Mountains, told SmartCompany
on Jan. 20 that private attraction businesses have so far missed
out on any targeted support from the federal government.
"We're the end chain of the tourism supply chain," the report
quotes Ms. Hammon as saying. "So they've helped travel agents,
they've helped aviation, they've helped zoos and aquariums, but
attractions and experiences have been left with very little
support."
SmartCompany relates that Ms. Hammon said both Bridge Climb and
Scenic World are still experiencing a 75% loss of revenue compared
to pre-pandemic years.
"Without a recovery in international tourism, the domestic market
is just not big enough to make up the slack," Ms. Hammon said.
In recognising the pressure facing tourism operators, some state
governments have offered targeted support to encourage interstate
travel, SmartCompany notes.
According to SmartCompany, Victoria budgeted $28 million for a
Regional Tourism Voucher Scheme, for example, which offers $200
vouchers to any resident who can prove they have already spent $400
on accommodation or attractions in regional Victoria.
Council of Small Business Organisations Australia chief executive
Peter Strong said unlike other industries, tourism is not yet able
to see when it will recover because of there is no definitive date
as to when international travel will pick up, SmartCompany relays.
"It's quite a huge impact," Mr. Strong told SmartCompany.
Mr. Strong expects the tourism industry will bear the brunt of the
end of JobKeeper on March 31, however, he does say there will
likely be targeted support from the federal government.
"Where and how will be interesting . . . I expect something will
come out at least in the budget, if not beforehand," SmartCompany
quotes Mr. Strong as saying.
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C H I N A
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HNA GROUP: Says Risk Disposal Plan Moving Into Key Stage
--------------------------------------------------------
Yu Ning, Huang Rong and Lu Yutong at Caixin Global report that the
plan to deal with the financial risks facing HNA Group Co. Ltd. is
about to enter the key stage, the conglomerate said, after it
turned to the government last year for help tackling the debt it
racked up during a worldwide spending spree.
"The working group has completed the due diligence work," HNA said
in a statement posted on Jan. 22, adding that the group has signed
off on a risk disposal plan that adheres to the principle of being
"law- and market-oriented," Caixin relays.
HNA, a former high-flyer that attracted global attention for its
aggressive spending including a stake in hotel giant Hilton
Worldwide Holdings Inc., was deeply mired in debt after liquidity
issues emerged in 2017, Caixin recalls. The latest financial report
it published, covering the first half of 2019, showed that the
company had CNY706.7 billion ($109 billion) of debt, bringing its
debt-to-asset ratio to 72.07%, Caixin discloses.
About HNA Group
China-based HNA Group Co. Ltd. offers airlines services. The
Company provides domestic and international aviation
transportation, air travel, aviation maintenance, and aviation
logistics services. HNA Group also operates holding, capital,
tourism, logistics, and other business.
As reported in the Troubled Company Reporter-Asia Pacific on Sept.
17, 2018, HNA Group defaulted on a CNY300 million (US$44 million)
loan raised through Hunan Trust. The company is already under
strict supervision by a group of bank creditors, led by China
Development Bank, following a liquidity crunch in the final quarter
of 2017. The default came despite an estimated $18 billion in asset
sales by HNA in 2018 that have done little to address its ability
to meet its domestic debts.
MEINIAN ONEHEALTH: Moody's Completes Review, Retains B1 Rating
--------------------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of Meinian Onehealth Healthcare Hldg. Co., Ltd. and other
ratings that are associated with the same analytical unit. The
review was conducted through a portfolio review discussion held on
January 19, 2021 in which Moody's reassessed the appropriateness of
the ratings in the context of the relevant principal
methodology(ies), recent developments, and a comparison of the
financial and operating profile to similarly rated peers. The
review did not involve a rating committee. Since January 1, 2019,
Moody's practice has been to issue a press release following each
periodic review to announce its completion.
This publication does not announce a credit rating action and is
not an indication of whether or not a credit rating action is
likely in the near future. Credit ratings and outlook/review status
cannot be changed in a portfolio review and hence are not impacted
by this announcement.
Key rating considerations.
Meinian Onehealth Healthcare Holdings Co., Ltd.'s B1 rating
incorporates the company's leading position in China's (A1) private
medical examination sector and its exposure to the country's
growing preventive healthcare industry.
However, the rating is constrained by Meinian Onehealth's exposure
to integration and execution risks stemming from its strategy of
growing through acquisitions and multistep investments, execution
risks associated with shifting toward a more premium service
offering and regulatory risks.
The B1 rating also factors in the operational benefits and support
from Alibaba (China) Technology Co. (Alibaba) and its affiliates as
the company's second-largest shareholder group.
The principal methodology used for this review was Business and
Consumer Service Industry published in October 2016.
SUNAC CHINA: Moody's Assigns B1 Rating to New Sr. Unsec. USD Notes
------------------------------------------------------------------
Moody's Investors Service has assigned a B1 rating to Sunac China
Holdings Limited's (Ba3 stable) proposed senior unsecured USD
notes.
The company plans to use the proceeds from the proposed notes to
refinance existing debt.
RATINGS RATIONALE
"Sunac's Ba3 corporate family rating reflects the company's strong
sales execution, leading brand and market position in China's Tier
1 and Tier 2 cities, its good quality land bank, and its adequate
liquidity profile, driven by its rapid asset turnover business
model," says Danny Chan, a Moody's Assistant Vice President and
Analyst.
"However, the company's rating is constrained by its improving but
still modest credit metrics, and high exposure to joint-venture
(JV) businesses, which weakens corporate transparency," adds Chan.
The proposed notes will lengthen Sunac's debt maturity profile and
will not have a material impact on its credit metrics, because the
proceeds will be used to refinance its existing debt.
Moody's expects Sunac's credit metrics will improve in the next
12-18 months, driven by a likely slowdown in debt growth given
tight credit conditions for Chinese property developers. In
particular, Moody's expects Sunac's revenue/adjusted debt will
improve to 65%-70% over the next one to two years from around 46%
for the 12 months ended June 2020. This projection includes the
company's growing revenue as a result of its strong contracted
sales over the past two years.
Similarly, the company's interest-servicing ability, as measured by
adjusted EBIT/interest coverage, will improve towards 3.0x from
around 2.1x over the same period.
Moody's expects Sunac's contracted sales to increase slightly to
RMB600 billion -- RMB630 billion in 2021 and 2022, supported by
good quality land resources, as well as its strong brand name and
sales execution. Sunac's gross contracted sales grew 3% to RMB575
billion in 2020 from the previous year, despite the impact from the
coronavirus outbreak.
The B1 rating on the proposed notes reflects the risk of structural
subordination, given the fact that the majority of claims are at
the operating subsidiaries and have priority over claims at the
holding company in a bankruptcy scenario. In addition, the holding
company lacks significant mitigating factors for structural
subordination, reducing the expected recovery rate for claims at
the holding company level.
Sunac's liquidity is adequate. Its cash holdings of around RMB121
billion as of June 30, 2020 largely cover its short-term debt of
RMB141 billion. Moody's expects the company's cash holdings and
likely operating cash inflow to cover its committed land purchases,
dividend payments, as well as capital spending and payables for its
previous acquisitions, over the next 12-18 months.
In terms of environmental, social and governance (ESG) factors,
Moody's has considered the concentrated ownership of Sunac, its
history of making sizable acquisitions and investments, and
significant investments in joint ventures (JVs). Moody's has also
considered the presence of four independent nonexecutive directors
on the board, who also chair the audit and remuneration committees;
and the presence of other internal governance structures and
standards as required under the Corporate Governance Code for
companies listed on the Hong Kong exchange.
Moody's regards the impact of the deteriorating global economic
outlook amid the rapid and widening spread of the coronavirus
outbreak as a social risk under its ESG framework because of the
substantial implications for public health and safety.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The stable outlook on Sunac's CFR reflects Moody's expectation that
the company will maintain stable sales, improve its revenue,
control its investments in non-property businesses and maintain its
leverage over the next 12-18 months.
Upward rating pressure could emerge if Sunac: (1) is able to
exercise restraint in its non-core business investments; (2)
maintains its solid liquidity position; and (3) improves its credit
metrics, such that its adjusted revenue/debt rises above 70%-75%
and adjusted EBIT/interest rises above 3.0x-3.5x on a sustained
basis.
A significant reduction in contingent liabilities associated with
joint ventures could also be positive for the ratings. This could
be a result of reduced usage of JVs or material improvement in the
financial strength of its JV projects.
However, Moody's could downgrade the ratings in case of: (1) a
material decline in its contracted sales; (2) a weakening in its
liquidity position; (3) substantial investments in non-property
development businesses; or (4) a weakening in credit metrics, such
that its adjusted revenue/debt falls below 50%-60% and adjusted
EBIT/interest drops below 2.0x-2.5x on a sustained basis.
Downward rating pressure could also increase if the company's
exposure to contingent liabilities associated with JVs increases
materially. This could be a result of a material deterioration in
the financial strength and liquidity of its JV projects or a
substantial increase in investment in JV projects.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Listed on the Hong Kong Stock Exchange on October 7, 2010, Sunac
China Holdings Limited is an integrated residential and commercial
property developer with projects in China's main economic regions.
The company develops a diverse range of properties, including
high-rise and mid-rise residences, detached villas, townhouses,
retail properties, offices and car parks.
SUNAC CHINA: S&P Assigns 'B+' Rating to New USD Sr. Unsec. Notes
----------------------------------------------------------------
S&P Global Ratings assigned its 'B+' long-term issue rating to a
proposed issue of U.S. dollar-denominated senior unsecured notes by
Sunac China Holdings Ltd. (BB-/Stable/--). The China-based
developer intends to use the net proceeds primarily to refinance
its existing offshore debt maturing before March 2022.
S&P said, "We rate the notes one notch below the issuer credit
rating on Sunac to reflect structural subordination risk. As of
June 30, 2020, Sunac's capital structure consists of about Chinese
renminbi (RMB) 240 billion in secured debt and RMB131 billion in
unsecured debt (external guarantee included). As such, the
company's secured debt ratio is around 65%, which is significantly
above our notching-down threshold of 50%. The issue rating is
subject to our review of the final issuance documentation.
"We do not expect the new issuance to significantly affect Sunac's
credit profile, given its refinancing purpose. The company's
contracted sales growth to about RMB576 billion for 2020 is within
our expectation, despite the disruptions from the COVID-19
outbreak. This is supported by Sunac's strong sales execution.
"We anticipate the company will be able to gradually improve its
financial leverage through satisfactory cash collection and more
controlled spending in its core development business. This tempers
the leverage surge in 2019 stemming from debt-fueled land
replenishment and is reflected in our stable rating outlook on the
company."
YANZHOU COAL: Fitch Maintains 'BB-' LongTerm Foreign-Currency IDR
-----------------------------------------------------------------
Fitch Ratings has maintained Yanzhou Coal Mining Company Limited's
Long-Term Foreign-Currency Issuer Default Rating (IDR) and senior
unsecured rating of 'BB-' on Rating Watch Positive (RWP). Fitch has
also maintained the RWP on the 'BB-' rating on the USD550 million
5.73% senior unsecured notes. The notes are issued by Yancoal
International Resources Development Co., Limited, a wholly owned
subsidiary, and unconditionally and irrevocably guaranteed by
Yanzhou Coal.
The ratings were placed on RWP in July 2020 following an
announcement of the merger of Yankuang Group Co., Ltd., which owns
51.8% of Yanzhou Coal, and Shandong Energy Group Co., Ltd.
Yanzhou Coal is rated based on the consolidated group credit
profile of its immediate parent, Yankuang, as Fitch assesses the
linkage between Yankuang and the listed subsidiary as 'Moderate',
based on Fitch's Parent and Subsidiary Rating Linkage criteria.
Yankuang's credit profile is assessed on a bottom-up approach with
an uplift from the ultimate parent, Shandong State-owned Assets
Supervision and Administration Commission (SASAC), according to
Fitch's Government-Related Entities Rating Criteria.
The RWP reflects Fitch’s expectation that Yankuang's Standalone
Credit Profile (SCP) is likely to be re-assessed at a level above
'b-' following the merger because of the enlarged operating scale,
strong financial flexibility and moderate operating cash flow
generation. However, Yankuang's SCP is likely to remain constrained
in the 'b' category due to high financial leverage. Fitch estimates
the merged entity's funds from operations (FFO) net leverage will
remain above 6.0x in 2020-2023.
Fitch expects the merged entity to perform a strategic role in
ensuring energy security and optimising the energy structure in
Shandong Province. This may involve investing beyond coal. Fitch
may assess Yankuang's likelihood of government support to be
stronger if supportive policies or further asset restructurings
materialise to help Yankuang execute its new mandate, or if the
business profile changes materially in execution of the mandate.
However, this may not happen in the near term, as both companies
are focused on merger integration.
Fitch expect to resolve the RWP following the completion of the
merger in March 2021 when the combined entity's financial
statements become available.
KEY RATING DRIVERS
Parent's Merger with Shandong Energy: Yankuang and Shandong Energy
signed the transaction confirmation letter on 30 November 2020
following the announcement of merger on 12 July. Transfer of assets
from Shandong Energy to Yankuang are underway. Upon completion,
Yankuang as the remaining entity will be renamed Shandong Energy
Group Co., Ltd (the new Shandong Energy).
Yankuang's SCP on Positive Watch: The new Shandong Energy will have
an annual coal production of 291 million tonnes (pro forma in
2019), the third-largest in China behind China Energy Investment
Corporation and the newly formed Jinneng Holding Group in Shanxi.
Both Yankuang and Shandong Energy have had positive operating cash
flow since 2017.
Fitch assesses the merged entity's profitability as moderate among
provincial coal state-owned enterprises (SOEs), which puts it in a
good position amid the government's supply side reform. The merged
entity's financial flexibility, mainly its access to bank and debt
capital market financing, is also likely to strengthen slightly.
Parent's Linkage with State: Fitch assesses Yankuang's status,
ownership and control as 'Strong' as Shandong SASAC owns 70% of the
company and the remaining 30% is held by Shandong Guohui Investment
Co., Ltd and Shandong Provincial Council for Social Security Fund.
The Shandong provincial government has recently appointed
management of the new Shandong Energy.
Fitch assesses Yankuang's record and expectation of support as
'Moderate' as tangible government support has been limited.
Yankuang and Shandong Energy received fiscal subsidies of CNY2.8
billion and CNY2.3 billion, respectively, in 2017-2019. The support
has not been sufficient for Yankuang to keep a strong SCP.
Strong Financial Impact of Default: Fitch assesses the financial
implications of a default as 'Strong' due to Yankuang's status as
one of the province's biggest SOEs. The socio-political
implications of a default are 'Weak' because most of Shandong's
coal demand is met by supply from other provinces and around
two-thirds of Yankuang's coal capacity is outside the province.
Moderate Linkage with Parent: Yanzhou Coal is 51.8%-owned by
Yankuang and holds most of the group's high-quality assets as its
sole listing platform. There is a high degree of overlap in key
board members and management between the two entities. The group
centralises treasury functions within a finance company, which is
95%-owned by Yanzhou Coal, allowing the parent and its
subsidiaries, other than Yanzhou Coal, to access the listed
company's cash within certain limits.
Yanzhou Coal SCP of 'bb': Fitch estimates Yanzhou Coal's average
selling price declined by around 20% yoy in 9M20, which is partly
saved by a strong rebound in 4Q20. Capex has stayed high at around
CNY10 billion in 2019 and 2020, but may decline gradually in the
next few years after completion of key chemical projects. The
recent acquisition of Inner Mongolia Mining Group and the promised
higher dividend are likely to raise leverage modestly. Fitch
expects FFO net leverage of around 4.0x-4.5x in 2021-2023, in line
with its 'bb' SCP.
DERIVATION SUMMARY
Yanzhou Coal's rating is based on the consolidated credit profile
of Yankuang, reflecting the moderate linkage between the two
entities under Fitch's Parent and Subsidiary Rating Linkage
Criteria. Yankuang's consolidated credit profile incorporates an
uplift from its SCP based on Fitch’s GRE criteria. Yanzhou's
ratings are on RWP, reflecting Fitch’s expectation of Yankuang's
strengthened SCP at a level above 'b-' after the merger with
Shandong Energy.
Yankuang's assessment of 'Strong' under the status, ownership and
control factor is lower than that of Shandong High-Speed Group Co.,
Ltd. (SHS, A/Stable). This is due to an exceptionally high degree
of government control over SHS's strategic and investment decisions
as a key provincial infrastructure investment platform, whereas
Yankuang's business is more commercially oriented.
Yankuang's 'Moderate' support record and 'Strong' financial
implications of a default are in line with the assessment for other
large provincial SOEs in the energy or commodity sectors, including
Gansu Province Electric Power Investment Group Co., Ltd.
(BBB-/Stable) and Jiuquan Iron and Steel (Group) Co., Ltd.
(BBB-/Stable). The 'Weak' assessment of the socio-political impact
of a default takes into consideration Yankuang's large asset
exposure outside Shandong Province as well as the province's heavy
reliance on coal supply from other provinces.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Average selling price of self-produced coal at CNY440/tonne in
2020, CNY465/tonne in 2021 and CNY455/tonne in 2022 and 2023;
-- Unit coal production cost to remain largely flat in the coming
years;
-- Coal production to rise at 4.8% CAGR in 2020-2023;
-- Annual capex averaging CNY9.3 billion in 2020-2023 and on a
downward trend;
-- Dividend payout ratio raised to 45% in 2020-2024.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Fitch may upgrade Yanzhou Coal's ratings upon completion of
the merger between Yankuang and Shandong Energy in reflection
of an improvement of Yankuang's SCP;
-- Higher likelihood of support from Shandong government to
Yankuang
Factor that could, individually or collectively, lead to negative
rating action/downgrade:
-- Fitch may remove Yanzhou Coal's ratings from RWP and affirm
the ratings at 'BB-' if the post-merger Yankuang's FFO
interest coverage falls in 1.5x-2.0x range on a sustained
basis.
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: Yanzhou Coal had total cash of CNY27.6
billion at end-9M20 (end-2019: CNY27.3 billion), close to its debt
maturing within one year of CNY28.7 billion (end-2019: CNY16.2
billion). The company also had total undrawn bank credit facilities
of CNY87.9 billion as of 1H20 (end-2019: CNY66.3 billion). Fitch
expects the company to continue to benefit from strong access to
domestic funding sources to refinance its maturing debt due to its
large SOE status.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
SUMMARY OF FINANCIAL ADJUSTMENTS
Yankuang Finance Company is 95% owned and consolidated by Yanzhou
Coal. Yankuang and its subsidiaries other than Yanzhou Coal
deposited CNY10.1 billion into the finance company at end-2019 and
borrowed CNY6.8 billion from the finance company. Fitch has
deducted the balance of CNY3.3 billion from Yanzhou Coal's cash to
derive the readily available cash balance at end-2019.
=========
I N D I A
=========
ASSOCIATED ENGINEERING: Ind-Ra Moves B+ Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Associated
Engineering Enterprises' 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 B+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR45 mil. Fund-based limits migrated to non-cooperating
category with IND B+ (ISSUER NOT COOPERATING) / IND A4
(ISSUER NOT COOPERATING) rating; and
-- INR95 mil. Non-fund-based limits migrated to non-cooperating
category with IND A4 (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 27, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 1985 in Hyderabad, Associated Engineering
Enterprises is an engineering, procurement and construction firm.
The firm is registered with the Roads and Buildings Department as a
special Class Civil Contractors in Andhra Pradesh and Telangana.
CH.GOWRI SHANKAR: Ind-Ra Affirms 'BB+' Long-Term Issuer Rating
--------------------------------------------------------------
India Rating and Research (Ind-Ra) has affirmed Ch.Gowri Shankar
Infra Build (India) Private Limited's (CHGS) Long-Term Issuer
Rating at 'IND BB+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR104 mil. (increased from INR80 mil.) Fund-based facilities
affirmed with IND BB+/Stable rating; and
-- INR150 mil. Non-fund-based facilities affirmed with IND A4+
rating.
KEY RATING DRIVERS
The affirmation reflects CHGS's continued medium scale of
operations, as indicated by revenue of INR1,902 million in FY20
(provisional numbers) (FY19: INR2,137 million). The revenue fell by
11% yoy mainly due to the execution of fewer orders owing to
COVID-led disruptions. The company recorded a revenue of INR1,615
million during 9MFY21. As of April 2020, the company had an
outstanding order book of INR5,668 million, which the management
expects to complete by July 2022. Ind-Ra expects the revenue to
increase in FY21 backed by the outstanding order book.
The ratings are constrained by the order book concentration.
Building projects such as residential buildings, school buildings,
warehouse buildings constitute 90%-95% of the orderbook; other
projects such as roads and irrigations account for the balance
5%-10%. Furthermore, the company's order book is geographically
concentrated, with all of its projects being based in Telangana and
Andhra Pradesh.
Liquidity Indicator – Stretched: The peak utilization of the
fund-based limits was 85% over the 12 months ended December 2020.
There was over-utilization of the non-fund-based limits (against
fixed deposit with bank) over the same period. The company's cash
flow from the operation turned negative at INR280 million in FY20
(FY19: INR5 million) due to a stretch in the working capital cycle.
The working capital cycle stretched to 75 days in FY20 (FY19: 57
days) due to an increase in inventory days to 130 days (65 days)
owing to the COVID-led lockdown towards end-March 2020.
The ratings, however, are supported by the firm's healthy EBITDA
margins owing to the management's focus on high-margin orders. The
EBITDA margin improved to 9.1% in FY20 (FY19: 5.9%), mainly due to
higher execution of 2-BHK building projects, which typically offer
higher margins than other projects. The RoCE was 30% in FY20 (FY19:
37%). Ind-Ra expects the margins to remains healthy in FY21 due to
the continued execution of high-margin orders.
The ratings are also supported by CHGS's comfortable credit metrics
due to the healthy margins Despite an increase in the absolute
EBITDA to INR174 million in FY20 (FY19: INR125 million), the credit
metrics deteriorated in FY20 due to an increase in total debt to
INR376 million (INR104 million). The interest coverage (operating
EBITDA/gross interest expense) was 6.0x in FY20 (FY19: 8.7x) and
the net leverage (total adjusted net debt/operating EBITDAR) was
2.2x (0.8x). Ind-Ra expects the metrics to comfortable in FY21 due
to the healthy margins.
The ratings also continue to be supported by the promoter's
experience of three decades in the civil construction business.
RATING SENSITIVITIES
Negative: Any deterioration in operating performance and further
stress on the liquidity position, leading to the interest coverage
falling below 2x, will be negative for the ratings.
Positive: A sustained improvement in the operating performance
along with an improvement in the liquidity position will be
positive for the ratings.
COMPANY PROFILE
Established in 1986 by Gowri Shankar, CHGS is a special class civil
contractor and undertakes civil contract works for buildings,
warehouses, drainage systems and irrigation projects.
F T TEXTILES: Ind-Ra Lowers Long-Term Issuer Rating to 'BB'
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded F T Textiles
Private Limited's Long-Term Issuer Rating to 'IND BB (ISSUER NOT
COOPERATING)' from 'IND BBB- (ISSUER NOT COOPERATING)'. The issuer
did not participate in the rating exercise despite continuous
requests and follow-ups by the agency.
The instrument-wise rating actions are:
-- INR29.24 mil. Long-term loan due on November 2024 downgraded
with IND BB (ISSUER NOT COOPERATING) rating; and
-- INR75 mil. Fund-based facilities downgraded with IND BB
(ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING)
rating; and
-- INR4.5 mil. Non-fund based facilities downgraded with
IND A4+ (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer not cooperating; based on the
best-available information
KEY RATING DRIVERS
The downgrade is pursuant to the SEBI Circular SEBI/HO/ MIRSD/
CRADT/CIR/P/2020/2 dated January 3, 2020. As per the circular, any
issuer having a investment-grade rating remaining non-cooperative
with a rating agency for more than six months should be downgraded
to a sub-investment grade rating. Please refer to the agency's
website www.indiaratings.co.in. F T Textiles has been
non-cooperative with the agency from June 17, 2020.
The current outstanding rating of 'IND BB (ISSUER NOT COOPERATING)'
may not reflect the company's credit strength, as the issuer has
been non cooperative with the agency. Therefore, investors and
other users are advised to take appropriate caution while using
these ratings.
COMPANY PROFILE
F T Textiles was incorporated in January 2010 in Bhiwandi (Thane)
by Fayyazuddin Mulla. It manufactures grey fabrics and sells them
under the brand name FT Guru, mainly in Surat (Gujarat).
GMR HYDERABAD INTERNATIONAL: Fitch Affirms 'BB+' Long-Term IDR
--------------------------------------------------------------
Fitch Ratings has affirmed GMR Hyderabad International Airport
Limited's (GHIAL) Long-Term Issuer Default Rating (IDR) and the
rating on the outstanding senior secured notes at 'BB+'. The
Outlook is Negative.
RATING RATIONALE
The rating affirmation reflects the pick-up in India's domestic air
traffic, GHIAL's ability to fund its near-term capex requirements
and sharp deleveraging estimates in the rating case. Fitch expects
the steep decline in traffic in the financial year ending March
2021 (FY21), slower recovery than anticipated and debt-funded
airport expansion to result in leverage increasing beyond the
agency's negative rating action trigger in the next two years,
before declining to less than 8.0x in FY24. GHIAL benefited from
delaying capex completion by six months and retains some degree of
flexibility in associated payments.
The Negative Outlook reflects the risk of an increase in
coronavirus infection rates leading to the re-imposition of travel
restrictions, and the tight financial headroom with Fitch
forecasting leverage to reach 7.7x by FYE24, just under Fitch’s
downgrade trigger of 8.0x.
KEY RATING DRIVERS
Strong Growth from Increasing Propensity to Fly - Volume Risk:
Midrange
GHIAL's FY20 passenger traffic was 21.6 million, most of which were
origin and destination passengers. Hyderabad Airport has had CAGR
of 12% in passengers from its first year of commercial operations
in 2009 until FY20. The pandemic has hurt passenger travel, but
Fitch expects the recovery to be faster with the airport having a
higher share of domestic traffic (close to 80%). The airport faces
limited regional competition from Bangalore and Chennai airports or
from alternative transport modes. The largest carrier, Indigo,
accounted for 18% of GHIAL's aeronautical revenue in 6MFY21, which
is not significantly more than peers.
Blended Till with Annually Adjusted Weighted Average Cost of
Capital - Price Risk: Midrange
GHIAL's blended till regulatory framework is now implemented.
However, there is still some uncertainty about the price increases
for FY22-FY26 due to outstanding legal and regulatory issues with
the recent pricing decisions, including recovery of past
entitlements, classification of cargo, ground handling and fuel
farm revenue. The CP2 (FY17-FY21) tariff order was eventually
issued by the regulator on 27 March 2020 with implementation from 1
April 2020 upon withdrawal of GHIAL's stay petition, which was
obtained in February 2018. The CP3 (FY22-FY26) tariff is expected
to be applied on time from FY22 along with a favourable judgement
from Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on
settlement of INR6 billion on account of a pre-control period
entitlement. A favourable judgement was obtained from TDSAT in the
case of Bangalore International Airport. The rating case has not
considered this pre-control period entitlement and any favourable
order will improve the liquidity position further.
Experienced Management to Deliver Significant Capex -
Infrastructure Development/Renewal: Midrange
The airport is operating above designed capacity, with a
utilisation ratio above 170%. Management plans to increase capacity
from the 12 million passengers to 34 million a year within four
years, to be funded through a combination of internal accruals and
additional borrowings. However, it puts pressure on GHIAL in the
near term, given the volume shock from the pandemic. Management has
entered into fixed-price fixed-term contracts with experienced
developers. There is some degree of payment flexibility and the
capex plan execution has been delayed by six months. The expansion
should be completed by FY23.
Limited Creditor Protections - Debt Structure: Weaker
GHIAL's senior debt is secured but the company is exposed to
refinance risk. The debt has limited creditor protection, except
for the fixed-charge cover ratio test for additional indebtedness.
The long concession tenor to 2038 mitigates refinancing risk. In
addition, GHIAL has notified the grantor for an extension of the
concession agreement by another 30 years, to 2068.
PEER GROUP
GHIAL is rated a notch higher than Delhi International Airport
Limited (DIAL, BB/Negative). Strategically located in Delhi, DIAL
has a stronger catchment area than GHIAL, which serves Hyderabad, a
vibrant but smaller city than Delhi. However, Fitch expects faster
recovery in GHIAL's passenger traffic on account of a higher
contribution from domestic passengers. Both airports are
undertaking intensive debt-funded expansion plan, but GHIAL's capex
is concentrated over the next couple of years, whereas DIAL's
investments are spread out over the next four years. Consequently,
Fitch expects GHIAL's net debt/EBITDA to decline to below 8.0x by
FY24, while Fitch estimates DIAL to stay about 10.0x until FY25.
Nevertheless, DIAL's higher leverage is compensated partially by
its stronger catchment area and its volume risk assessment,
resulting in just a notch of difference in credit assessments.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Fitch does not expect a positive rating action 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 resulting in normal
air traffic patterns, or if GHIAL adopts strategies that
convincingly stabilises the finances.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Traffic or revenue underperformance, adverse pricing
decisions, or cost overruns in the capex execution leading to
delay in deleveraging, such that rating case net debt/EBITDA
does not decline to less than 8.0x by FY24;
-- Further credit erosion of the major air carriers or payment
delinquencies to the finance of the airport;
-- Deterioration in airport liquidity level for a sustained
period.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Sovereigns, Public Finance
and Infrastructure 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.
CREDIT UPDATE
Traffic performance: Air travel was suspended during the
nation-wide lockdown between 23 March and end of May 2020. Domestic
air travel resumed on 25 May 2020. GHIAL's passenger traffic fell
by 72% in 2020, with domestic traffic down 68%. The passenger
traffic was 4.7 million. The rating case assumes passenger traffic
of 7.7 million in FY21. Cargo growth so far seems resilient to the
pandemic with minimal impact. The cargo tonnage as of 3QFY21 was
79,290 tonnes, which was 70% of the tonnage carried as of 3QFY20.
Air traffic movement fell by 60% in the same period.
Financial Performance: The pandemic has had a significant impact on
all business segments of GHIAL.
Total revenue fell by 64% to INR3.8 billion in H1FY21 from INR10.7
billion in H1FY20. Operating expenses fell by 22% during the same
period. Close to 80% of the operating expenses is fixed. GHIAL's
EBITDA fell by 92% to INR0.5 billion in 2QFY21 compared with INR6
billion in 2QFY20.
GHIAL availed a working capital facility of INR1.5 billion from
ICICI bank (currently drawn: INR0.5 billion) and INR1 billion from
Aditya Birla Finance Limited (fully drawn) in FY21. These
facilities are secured on pari passu basis with the note holders.
GHIAL had a cash and cash equivalent balance of INR15 billion at
end-2020, of which INR2 billion was undeployed bond proceeds to be
used towards capex. Fitch assesses the liquidity to be adequate in
the near term.
Tariff Framework: The CP2 tariff was implemented on 1 April 2020,
resulting in decline of aeronautical revenue as a percentage of
total revenue from to 37% in 1HFY21 from 61% in 1HFY20. The CP3
tariff should be implemented in FY22. Management also expects
favourable settlement of the claim from TDSAT in 1QFY22 of about
INR6 billion. A similar favourable judgement was obtained from
TDSAT in Bangalore airport.
Annual fee payment: GHIAL had requested an extension on the
concession fee payment to the government of India due to
operational losses from the pandemic. GHIAL has to pay a revenue
share of 4% under the agreement. The government initially granted
an extension from June 2020 until December 2020. GHIAL has not paid
the concession fee for the period and is in discussion with the
government for a further extension of two years. A decision is yet
to be made, and the Fitch rating case does not consider this
payment extension.
FINANCIAL ANALYSIS
Fitch Rating Case: Fitch’s rating case scenario assumes a 65%
decline in passenger traffic in FY21, based on the following
assumptions of the quarterly traffic trend:
-- Significant reduction in international traffic and, to a
lesser extent, in domestic traffic in 1QFY23;
-- Stabilisation of traffic in 2QFY23; and
-- Gradual recovery in 2QFY24.
Fitch assumes passenger traffic in FY24 will have recovered to the
FY20 level. The rating case does not consider any upside from
settlement of pending claims regarding pre-control period
entitlement. Fitch assumes CP3 tariff with a 20% haircut to be
implemented in FY22. No extension for payment of revenue share has
been taken into account.
Coronavirus Severe Downside Case: The coronavirus sensitivity case
assumes the trough of the crisis lingers for one more year,
resulting in air traffic recovery to pre-pandemic levels by FY25.
No upside from arbitration claims is considered and revenue share
is assumed to be paid without any extension of time. Fitch
forecasts leverage to remain above 9.0x until FY24.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
INFRAHITE INFRA: CRISIL Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Infrahite
Infrastructure Private Limited (IIPL) continue to be 'CRISIL
B+/Stable/CRISIL A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 2 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with IIPL for
obtaining information through letters and emails dated June 29,
2020 and December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of IIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on IIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
IIPL continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.
IIPL, established in 2012, undertakes roads and bridge construction
activities in Kerala. The company is promoted by Mr. P Niyas Babu.
JAYA BAKERS: CRISIL Lowers Rating on INR5.4cr Term Loan to B
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Jaya Bakers
and Restaurant (JBR) Revised to 'CRISIL B/Stable Issuer Not
Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.5 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable' ISSUER NOT
COOPERATING)
Proposed Long Term
Bank Loan Facility 4.1 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable' ISSUER NOT
COOPERATING)
Term Loan 5.4 CRISIL B/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB/Stable' ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with JBR for
obtaining information through letters and emails dated June 29,
2020 and December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of JBR, which restricts CRISIL
Ratings ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on JBR
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
JBR Revised to 'CRISIL B/Stable Issuer Not Cooperating' from
'CRISIL BB/Stable Issuer Not Cooperating'.
Set up in 2003 as proprietorship firm by Mr S Sudheer, JBR
restaurants in Kerala.
JAYASHEEL N SHETTY: Ind-Ra Moves 'BB' LT Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shri Jayasheel N
Shetty's Long-Term Issuer Rating to the non-cooperating category.
The issuer did not participate in the surveillance 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 BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR150 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB (ISSUER NOT COOPERATING)/IND
A4+ (ISSUER NOT COOPERATING) rating;
-- INR95 mil. Non-fund-based limits migrated to non-cooperating
category with IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR50 mil. Fund-based working capital limits* assigned;
migrated to non-cooperating category with IND BB (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR50 mil. Non-fund-based limits* assigned; migrated to non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating.
*The final ratings have been assigned following the receipt of
executed financing documents by Ind-Ra.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 20, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Shree Jayasheel N Shetty was established in 2006 as a
proprietorship entity. The firm is engaged in civil construction
work of roads, bridges, canal works, barrage works and lift
irrigation works. The entity only executes government projects on
tender basis. Jayasheel Narayana Shetty is the proprietor.
JINAAM'S DRESS: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Jinaam's Dress Limited
Plot No. 524, Road No. 5
G.I.D.C., Sachin
Surat GJ 394230
IN
Insolvency Commencement Date: January 12, 2021
Court: National Company Law Tribunal, Surat Bench
Estimated date of closure of
insolvency resolution process: July 14, 2021
Insolvency professional: CA Kailash Thanmal Shah
Interim Resolution
Professional: CA Kailash Thanmal Shah
505, 21st Century Business Centre
Near World Trade Centre
Ring Road, Surat 395002
E-mail: ipktshah@gmail.com
cirp.jinaam@gmail.com
Mobile: 9824150365
Last date for
submission of claims: January 29, 2021
KASTUM ENGINEERS: CRISIL Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Kastum
Engineers - Aurangabad (KEA) continue to be 'CRISIL
B+/Stable/CRISIL A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 7.3 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 2 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL has been consistently following up with KEA for obtaining
information through letters and emails dated June 29, 2020 and
December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 KEA, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on KEA is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of KEA
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
KEA was established in fiscal 2005 as a proprietorship firm by Mr.
Mahindra Kala. The firm undertakes electrification contracts
(foundation, erection, and stringing of transmission lines)
currently for Maharashtra State Electricity Distribution Company
Ltd.
KWALITY LTD: NCLT Passes Order to Liquidate Dairy Firm
------------------------------------------------------
The Hindu reports that the National Company Law Tribunal (NCLT) has
directed to liquidate debt-ridden dairy firm Kwality Ltd after the
company failed to finalise any bidder within the specified
time-frame.
The NCLT had directed to initiate insolvency proceedings against
Kwality Ltd on December 11, 2018 over the plea filed by the
financial creditors Punjab National Bank and KKR India Financial
Services.
According to the report, a two-member bench of the Delhi-based NCLT
observed that despite extension in the insolvency timeline, the
lenders of the Kwality failed to finalise any potential buyer for
the company.
The Hindu relates that the Committee of Creditors (CoC) had
received only one resolution plan for the company from a consortium
of Haldiram Snacks and Pioneer Securities, but the bid could not
get approved with the required majority of 66 per cent votes of
lenders.
Following this, its resolution professional (RP) Shailendra Ajmera,
who is part of consultancy firm E&Y, had moved an application to
initiate the liquidation process for the company as mandated under
the Insolvency & Bankruptcy Code (IBC), The Hindu relays.
"In view of the facts and circumstances, this authority (NCLT) is
satisfied that the application filed for initiation of liquidation
proceedings against the corporate debtor (Kwality) is a fit case
for ordering the liquidation of the corporate debtor namely Kwality
Ltd in the manner laid down in IBC, 2016," said a two-member NCLT
bench comprising M S Tariq and N K Bhola.
The NCLT also appointed Ajmera as liquidator, the report
discloses.
"The personnel of the corporate debtor are hereby directed to
extend all corporations to the liquidator as may be required in
managing the affairs of the corporate debtor," said the NCLT.
As the liquidation order has been passed, no suit or other legal
proceedings shall be initiated by or against Kwality without prior
approval of the NCLT, it added, according to The Hindu.
Moreover, the "moratorium passed under Section 14 of the IBC, 2016
shall cease to have its effect from the date of the order and that
a fresh moratorium under Section 33(5) of IBC, 2016 shall
commence".
"The liquidator shall submit a preliminary report to the NCLT
within 75 days from the liquidation commencement," said the NCLT,
while directing the liquidator to send the copy of the order to
Registrar of Companies, the Insolvency and Bankruptcy Board of
India and IT Department including Assessing IT Officer of the IT
Circle.
Kwality Ltd is engaged in the business of milk processing and
manufacturing of dairy products, including ghee, milk powders,
lassi, chaach, flavoured milk etc. It owns two milk processing
units, one in Softa, Haryana, and another in Dibai, Uttar Pradesh.
LAMBA FOOD: CRISIL Lowers Rating on INR8.50cr Cash Loan to B
------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of Lamba
Food Products (LFP) to 'CRISIL B/Stable Issuer Not Cooperating'
from 'CRISIL BB-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8.25 CRISIL B /Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable' ISSUER
NOT COOPERATING)
Proposed Long Term 0.25 CRISIL B /Stable (ISSUER NOT
Bank Loan Facility COOPERATING; Revised from
'CRISIL BB-/Stable' ISSUER
NOT COOPERATING)
CRISIL has been consistently following up with LFP for obtaining
information through letters and emails dated June 29, 2020 and
December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 LFP, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on LFP is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of LFP
Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL
BB-/Stable Issuer Not Cooperating'.
LFP was set up as a proprietorship firm in 1985 by Mr Rajesh Kumar
Lamba, and was later reconstituted as a partnership firm with his
brothers Mr Jawahar Lal Lamba, Mr Ajay Kumar Lamba, and Mr Naresh
Kumar Lamba as partners. LFP manufactures and exports eatables such
as sweets, suji rusk/toast, bakery items, cookies, namkeen boondi
and snacks, under the Babaji brand.
MASTER KISHAN: Ind-Ra Moves 'BB-' Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Master Kishan
Chand Memorial Educational & Social Welfare Society's (MKCES) bank
facility rating to the non-cooperating category. The issuer did not
participate in the rating exercise despite continuous requests and
follow-ups by the agency. Therefore, investors and other users are
advised to take appropriate caution while using the ratings. The
ratings will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on
the agency's website.
The instrument-wise rating action is:
-- INR86.52 mil. Term loan due on December 31, 2025 migrated to
non-cooperating category with IND BB- (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 21, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
MKCES (established in 2001) runs two schools under its ambit,
K.C.M. Public High School and K.C.M. World School.
MUSADDILAL JEWELLERS: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Musaddilal Jewellers Private Limited
6-3-679, "Elite Plaza"
Punjagutta, Hyderabad
TG 500082
Insolvency Commencement Date: January 7, 2021
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: July 6, 2021
Insolvency professional: Padmasri Appana
Interim Resolution
Professional: Padmasri Appana
1-1-711/1, Gandhi Nagar
Hyderabad, Telangana 500080
E-mail: padmaappana@yahoo.co.in
- and -
301- B-Block
Vishnu Residency
Gandhi Nagar, Hyderabad
Telangana 500080
E-mail: cirpmjpl@gmail.com
Last date for
submission of claims: February 1, 2021
NEW WIN: CRISIL Keeps C Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of New Win Win
Feeds Private Limited (NWW) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.29 CRISIL C (Issuer Not
Cooperating)
Cash Credit 4.05 CRISIL C (Issuer Not
Cooperating)
Proposed Long Term
Bank Loan Facility 2.93 CRISIL C (Issuer Not
Cooperating)
Term Loan 0.73 CRISIL C (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with NWW for
obtaining information through letters and emails dated June 29,
2020 and December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of NWW, which restricts CRISIL
Rating's ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NWW
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
NWW continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 2012, NWW manufactures poultry feed, and has
capacity of 3000 tonne per month. It also undertakes broiler
chicken farming on contract. Promoters Mr Amarnath Saha and Mr
Debnath Saha look after operations.
ORACLE HOME: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Oracle Home
Textile Limited (Oracle) continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Purchase- 3.75 CRISIL D (Issuer Not
Discounting Cooperating)
Facility
Cash Credit 2 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 4 CRISIL D (Issuer Not
Cooperating)
Packing Credit 22.45 CRISIL D (Issuer Not
Cooperating)
Post Shipment
Credit 7.1 CRISIL D (Issuer Not
Cooperating)
Standby Export 6.7 CRISIL D (Issuer Not
Packing Credit Cooperating)
Term Loan 25.16 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Oracle for
obtaining information through letters and emails dated June 29,
2020 and December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Oracle, which restricts CRISIL
Rating's ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Oracle is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of Oracle continues to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Oracle was originally set up in 1992 by Mr. Sanjay Dave and Ms.
Shilpa Dave as a partnership firm, Oracle Exports; this firm was
reconstituted as a closely held public limited company under the
current name in August 2011. The company exports 75 per cent of its
output of terry towels and home textiles to makers of leading
global brands such as Esprit, Hollister, Kmart, and Tommy Hilfiger;
the balance 25 per cent is sold in the domestic market. Oracle has
a diverse customer base across different geographies, including the
US, Europe, Australia, the Middle East, and Africa. The company is
among the leading manufacturers of terry towels in the jacquard
segment in India. It has vertically integrated operations,
comprising weaving, yarn and fabric dyeing, and finishing
facilities.
P. D. INDUSTRIES: CRISIL Keeps B Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of P. D.
Industries Private Limited (PDIPL) continue to be 'CRISIL
B/Stable/CRISIL A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1.5 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 13.0 CRISIL B/Stable (Issuer Not
Cooperating)
Letter of Credit 13.5 CRISIL A4 (Issuer Not
Cooperating)
Proposed Long Term 2 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL has been consistently following up with PDIPL for obtaining
information through letters and emails dated June 29, 2020 and
December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 PDIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on PDIPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of PDIPL
continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.
PDIPL was incorporated in 1992 and manufactures coal-based sponge
iron. The company has a manufacturing plant in Raipur
(Chhattisgarh) with an installed capacity of 60,000 tonnes per
annum PDIPL purchases iron ore largely from iron ore mines in
Orissa and NMDC Ltd and coal from South Eastern Coalfields Ltd.
PRECISION POLYPLAST: CRISIL Keeps B+ Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Precision
Polyplast Private Limited (PPPL) continue to be 'CRISIL
B+/Stable/CRISIL A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL A4 (Issuer Not
Cooperating)
Foreign Exchange
Forward 0.2 CRISIL A4 (Issuer Not
Cooperating)
Letter of Credit 5 CRISIL A4 (Issuer Not
Cooperating)
Overdraft Facility 4 CRISIL B+/Stable (Issuer Not
Cooperating)
Packing Credit 6 CRISIL A4 (Issuer Not
Cooperating)
Post Shipment Credit 2 CRISIL A4 (Issuer Not
Cooperating)
CRISIL has been consistently following up with PPPL for obtaining
information through letters and emails dated June 29, 2020 and
December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PPPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on PPPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of PPPL
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.
PPPL was established in 1994, promoted by the Agrawal family. The
Kolkata-based company recycles imported plastic scrap into plastic
flour and agglomerates, primarily used in manufacturing industrial
plastic products such as low-grade sheets and drums.
RAJ RAJESHWARI: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Raj Rajeshwari Sugar Private Limited
Railway Station Road
Indira Ward, Gadarwara
Narsinghpur MP 487551
India
Insolvency Commencement Date: January 8, 2021
Court: National Company Law Tribunal, Bhopal Bench
Estimated date of closure of
insolvency resolution process: July 17, 2021
Insolvency professional: Amresh Shukla
Interim Resolution
Professional: Amresh Shukla
F-05, Jaideep Complex
112, Zone-II
M.P. Nagar, Bhopal
M.P. 462011
E-mail: insolvencyprofessionalsindia@
gmail.com
cirp.rajrajeshwari@gmail.com
Last date for
submission of claims: February 1, 2021
RAMA RICE: CRISIL Keeps B+ Debt Rating in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Rama Rice
Mills (RRM) continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL has been consistently following up with RRM for obtaining
information through letters and emails dated June 29, 2020 and
December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 RRM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on RRM is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of RRM
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Established as a partnership firm in 1990 by Gambhir and family,
RRM mills and processes basmati and non-basmati rice at its
facilities in Barara, Haryana.
RYDAK SYNDICATE: Ind-Ra Moves BB+ Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Rydak Syndicate
Limited's (RSL) 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 the ratings. The rating will now
appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR200 mil. Fund-based working capital limits migrated to non-
cooperating category with IND BB+ (ISSUER NOT COOPERATING)
rating; and
-- INR20 mil. Non-fund-based working capital limits migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 19, 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 1898, RSL has integrated tea manufacturing
operations, comprising cultivation of tea and manufacturing of
black crush, tear, curl tea. It has six tea estates covering a
total area of 3,447 hectares in West Bengal and Assam, and has a
total tea manufacturing capacity of 7 million kg per year. RSL is
listed on the Calcutta Stock Exchange.
SHIV METTALICKS: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shiv Mettalicks
Private 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 the rating. The rating will now
appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR116 mil. Fund-based working capital limit migrated to non-
cooperating category with IND BB- (ISSUER NOT COOPERATING)
rating; and
-- INR4 mil. Non-fund based working capital limit migrated to
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
December 18, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Rourkela (Odisha)-based Shiv Mettalicks was incorporated in 2004.
The company manufactures sponge iron with an installed capacity of
60,000 metric tons per annum.
SHIVALI UDYOG: CRISIL Keeps B Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shivali Udyog
India Private Limited (SUIL) continue to be 'CRISIL B/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.15 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 21.23 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
Working Capital 7.2 CRISIL B/Stable (Issuer Not
Demand Loan Cooperating)
CRISIL has been consistently following up with SUIL for obtaining
information through letters and emails dated June 29, 2020 and
December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 SUIL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on SUIL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SUIL
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
SUIL, based in Raipur (Chhattisgarh), was acquired by its current
promoters, Mr. Vinod Agrawal and Mr. Ashok Agrawal, in March 2002.
The promoters have experience of more than three decades in the
iron and steel industry. The company produces mild steel (MS) wire
rods, MS rounds, thermo-mechanically treated bars, and hard bright
(HB) wires. Its facilities have capacity of 41,000 tonnes per annum
(tpa) for HB wires and rolling capacity of 100,000 tpa.
SUPERFINE COMPONENTS: CRISIL Keeps B Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Superfine
Components Private Limited (SCPL) continue to be 'CRISIL B/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.5 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 4.7 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 1.8 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL has been consistently following up with SCPL for obtaining
information through letters and emails dated June 29, 2020 and
December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SCPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on SCPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SCPL
continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
SCPL, incorporated in 2004, is promoted by Mr. TK Khattar. The
company manufactures steel components such as bright bar turned
components, CNC (Computer Numerical Control)-machined components,
precision tubular components, fasteners, sheet metal components as
well as some plastic moulded components for the auto industry. The
company's manufacturing unit is in Manesar (Haryana).
SUSHITEX INDUSTRIES: CRISIL Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sushitex
Industries Private Limited (SIPL) continue to be 'CRISIL D/CRISIL D
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 1 CRISIL D (Issuer Not
Cooperating)
Cash Credit 3 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 4.57 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 18 CRISIL D (Issuer Not
Cooperating)
Export Packing 13.5 CRISIL D (Issuer Not
Credit Cooperating)
CRISIL has been consistently following up with SIPL for obtaining
information through letters and emails dated June 29, 2020 and
December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 SIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on SIPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SIPL
continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
SIPL, set up in 2011, manufactures fabric used for making shirts.
Its manufacturing facilities are in Tarapur (Maharashtra) and
operations are managed by Mr. Harish Arya and his family members.
SWASTIK PLASCHEM: CRISIL Cuts Rating on INR5cr Cash Loan to B
-------------------------------------------------------------
CRISIL Ratings has revised the ratings on bank facilities of
Swastik Plaschem Private Limited (SPPL: part of Swastik Group) to
'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating' from 'CRISIL
BB/Stable/CRISIL A4+ 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)
Letter of Credit 15 CRISIL A4 ISSUER NOT
COOPERATING; Revised from
'CRISIL A4+' ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SPPL for obtaining
information through letters and emails dated June 29, 2020 and
December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 SPPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on SPPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of SPPL
revised to 'CRISIL B/Stable/CRISIL A4 Issuer Not Cooperating' from
'CRISIL BB/Stable/CRISIL A4+ Issuer Not Cooperating'.
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of Charu Overseas Pvt. Ltd (COPL), (SPPL)
and Kaycee Polymer Pvt Ltd (KPPL) together referred to as the
Swastik group. This is because both the companies have a common
management/promoter, are engaged in the same business.
About the Group
Incorporated in 1995, COPL trades in various grades of polymer
products such as PE, PP, EVA HDPE, LDPE, LLDPE, HMHDPE, and PVC in
the domestic market.
KPPL was set up in 2005 and trades in PVC resign in the domestic
market.
SPPL was incorporated in 2010, but started operations in July 2017.
It trades in various grades of polymer products such as PE, PP, EVA
HDPE, LDPE, LLDPE, HMHDPE, and PVC, in the domestic market.
TALOD FOOD: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Talod Food
Products Private Limited (TFPL) continue to be 'CRISIL B+/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1.25 CRISIL B+/Stable (Issuer Not
Cooperating)
Term Loan 10 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL has been consistently following up with TFPL for obtaining
information through letters and emails dated June 29, 2020 and
December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 TFPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on TFPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of TFPL
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
TFPL was set up in in 2016, by Mr Dipak Kumar Chotai and his family
members. The company is setting up a unit for manufacturing instant
mix food products, at Talod. Commercial operations are expected to
start from December 2018; however, the project is at an advanced
stage and the management is now planning to start operations from
October 2018.
THATIPALLI INFRA: CRISIL Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Thatipalli
Infra Projects (TIP) continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 8 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL has been consistently following up with TIP for obtaining
information through letters and emails dated June 29, 2020 and
December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 TIP, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on TIP is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of TIP
continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
TIP is a Partnership Firm established on 01-01-2015 and is engaged
in residential real estate business. It is promoted by the Khammam
based Thatipalli family. The firm currently develops a residential
project in Kothagudem, Telangana.
TOTEM INFRASTRUCTURE: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: Totem Infrastructure Limited
H.No. 8-2-334/B/2
Road No. 5,Banjara Hills
Hyderabad 500082
IN
Insolvency Commencement Date: January 12, 2021
Court: National Company Law Tribunal, Hyderabad Bench
Estimated date of closure of
insolvency resolution process: July 11, 2021
Insolvency professional: G. Satyanarayana Murty
Interim Resolution
Professional: G. Satyanarayana Murty
Partner, G.S. Murty & Associates
Chartered Accountants
Flat No. 308B, 3rd Floor
Sai Tirumala Towers
Hyderguda, Hyderabad 500029
Telangana, IN
E-mail: camurty.gsn@gmail.com
totem.irp@gmail.com
Last date for
submission of claims: January 31, 2021
TRADEINOX INDUSTRIES: Insolvency Resolution Process Case Summary
----------------------------------------------------------------
Debtor: M/s. Tradeinox Industries Limited
Flat No. 202, H.No. 258/3RT
Sarala Apartments
Sanjeeva Reddy Nagar Colony
Hyderabad TG 500038
Insolvency Commencement Date: January 13, 2021
Court: National Company Law Tribunal, Coimbatore Bench
Estimated date of closure of
insolvency resolution process: July 12, 2021
(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: February 1, 2021
TUF METALLURGICAL: CRISIL Keeps B Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of TUF
Metallurgical Private Limited (TUF) continue to be 'CRISIL
B/Stable/CRISIL A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Letter of Credit 5 CRISIL A4 (Issuer Not
Cooperating)
Proposed Long Term 40 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
Proposed Short Term 5 CRISIL A4 (Issuer Not
Bank Loan Facility Cooperating)
Export Packing 30 CRISIL B/Stable (Issuer Not
Credit Cooperating)
CRISIL has been consistently following up with TUF for obtaining
information through letters and emails dated June 29, 2020 and
December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 TUF, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on TUF is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of TUF
continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.
TUF, incorporated in 1999, is promoted by Mr. Anil Malhotra
(managing director) and his wife Ms. Babita Malhotra. It is engaged
in trading, manufacturing and processing of Metallurgical Products
i.e Ferrous and Non Ferrous Alloys'? as exporters, marketing
agents, merchant exporters, manufacturers, dealers, and processors
etc. The New Delhi-based company's manufacturing unit is in
Kolkata.
UNI PROFILES: CRISIL Keeps B Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Uni Profiles
Private Limited (UPPL) continue to be 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.5 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 3.5 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 5.06 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 0.94 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL has been consistently following up with UPPL for obtaining
information through letters and emails dated June 29, 2020 and
December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 UPPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on UPPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of UPPL
continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.
UPPL, incorporated in 2010 and set up by Mr. Atul Agarwal,
manufactures heavy fabrication and machine components that find
application in the heavy engineering, power, steel, and
construction industries. Its manufacturing facility is in Rourkela
(Odisha).
UNITED ELECTRICAL: CRISIL Keeps C Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of United
Electrical Industries Limited (UEIL) continue to be 'CRISIL
C/CRISIL A4 Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 4 CRISIL C (Issuer Not
Cooperating)
Proposed Cash 6 CRISIL C (Issuer Not
Credit Limit Cooperating)
Proposed Short Term 7 CRISIL A4 (Issuer Not
Bank Loan Facility Cooperating)
CRISIL has been consistently following up with UEIL for obtaining
information through letters and emails dated June 29, 2020 and
December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 UEIL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on UEIL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of UEIL
continues to be 'CRISIL C/CRISIL A4 Issuer not cooperating'.
Set up in 1950, UEIL manufactures energy meters. GoK holds an
equity stake of 97.2 per cent in the company. UEIL sells its
products under the Unilec brand, with Kerala State Electricity
Board as its biggest customer.
UNIVERSAL TUBE: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Universal
Tube Accessories Private Limited (UTAPL) continue to be 'CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 0.68 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 4.32 CRISIL D (Issuer Not
Cooperating)
CRISIL has been consistently following up with UTAPL for obtaining
information through letters and emails dated June 29, 2020 and
December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
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 UTAPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes that rating action on UTAPL is consistent
with 'Assessing Information Adequacy Risk'. Based on the last
available information, the ratings on bank facilities of UTAPL
continues to be 'CRISIL D Issuer Not Cooperating'.
UTAPL, incorporated in 2011 by Mr Dayanand Petkar, manufactures
plastic pipe fittings used in oil and gas industries; it also
produces plastic packaging material for paint and chemical
industries, and food products. The production facility at Jejuri
MIDC (Pune) has installed capacity of 3.6 lakh sets per annum.
VRAJPACK INDUSTRIES: CRISIL Keeps B+ Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Vrajpack
Industries (VPI) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.95 CRISIL B+/Stable (Issuer Not
Cooperating)
Term Loan 4.05 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with VPI for
obtaining information through letters and emails dated June 29,
2020 and December 18, 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 with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of VPI, which restricts CRISIL
Ratings ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VPI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VPI continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
VPI, set up in 2015, is a partnership firm promoted by Mr Jatin
Dharsandiya, his family members, and others. The firm is engaged in
manufacturing of corrugated boxes in Morbi, Gujarat.
=================
I N D O N E S I A
=================
BUKIT MAKMUR: Fitch Affirms 'BB-' LongTerm Foreign-Currency IDR
---------------------------------------------------------------
Fitch Ratings has affirmed PT Bukit Makmur Mandiri Utama's (BUMA)
Long-Term Foreign-Currency Issuer Default Rating (IDR) and the
outstanding senior unsecured notes due 2022 at 'BB-'. The Outlook
on the IDR is Negative.
The Negative Outlook continues to reflect BUMA's low rating
headroom. Fitch expects the funds from operations (FFO) net
leverage to remain near the negative rating sensitivity of 3.3x in
2021 - albeit lower than Fitch’s expectation of 3.6x in 2020 -
before improving to less than 2.5x from 2022. The improvement is
based on Fitch’s expectations of expanding volumes, higher
realisations and better cost management.
BUMA's rating reflects its position as Indonesia's second-largest
mining contractor, with a market share of about 15% and a
satisfactory operational record with customers. The rating also
reflects the concentration risk the company faces, with about 80%
of its volume coming from only three counterparties, and the highly
cyclical nature of the domestic coal contracting industry.
KEY RATING DRIVERS
Improving earnings: Fitch expects BUMA's EBITDAR to improve to over
USD220 million in 2021 from about USD160 million in 2020 (USD267
million in 2019). The improvement factors in Fitch’s expectations
of volume growth, price improvements following Fitch’s coal-price
assumptions and BUMA's cost optimisations in 2020. About 70% of
BUMA's coal-mining contracts are linked to coal prices and are
affected by coal-price movements.
Cost Savings: Fitch also estimates costs to have fallen in 2020,
after peaking in 2019, as the company optimises its capacity to
match the lower volume base and improves operational efficiencies.
BUMA has cut over 2,000 employees since end-2019. BUMA's employee
cost fell to USD95 million in 9M20 (9M19: USD104 million); this
includes one-time costs of USD7 million.
New Contracts Wins Key: Fitch thinks BUMA will increasingly rely on
winning new customers in the next few years to maintain earnings.
BUMA's PT Berau Coal contract, accounting for about half of BUMA's
revenue, ends in 2025 when mine reserves are depleted. Fitch
believes BUMA's strong reputation and 20-plus years of experience
will help secure new business and manage the operational execution
risks of new business. New contracts can also reduce BUMA's
customer concentration - a key constraint for improving beyond
'BB-'over the medium term.
BUMA extended in 2021 its contract with a subsidiary of PT Bayan
Resources, which would result in additional overburden volumes of
around 650 million bank cubic metres (bcm) until 2031. This should
offset the volumes lost from a contract with PT Kideco Jaya Agung
that ended in 2020. Fitch expects BUMA to exercise financial
prudence and be more selective in choosing new growth
opportunities, after facing some payment issues with some newer
albeit smaller customers in 2017-2019. Still, Fitch would treat any
major acquisitions as event risk.
Lower Capex: Fitch expects equipment capacity to remain high, but
with a minimal contribution to the cost base, as BUMA plans to park
its spare equipment in line with its lower volume expectation. This
will reduce repair and maintenance expenses, which Fitch believes
will lower capex requirements over the next three years. Fitch
estimates capex in 2020 was limited to maintenance at USD30
million, and forecast maintenance and growth capex of around USD100
million a year over 2021-2023.
Strong Market Position: Fitch estimates BUMA's key customers -
Berau Coal, PT Adaro Indonesia (BBB-/Stable) and PT Indonesia
Pratama, a subsidiary of PT Bayan Resources Tbk (BB-/Stable) -
contributed about 80% of BUMA's 2020 volume. They all have an
efficient cost positions, and Berau Coal and Adaro have a more than
15-year relationship with BUMA. Fitch expects BUMA to maintain its
position as Indonesia's second-largest coal-mining contractor.
DERIVATION SUMMARY
BUMA's closest rated peers are PT ABM Investama Tbk (B+/Negative)
and Emeco Holdings Limited (B+/Stable). BUMA's one-notch
differential to ABM's rating is justified by its stronger business
profile, driven by its better mine-contracting business in terms of
efficiency, with higher margins and market share. BUMA also has a
larger scale than ABM, in an industry where scale is important. ABM
benefits from its diversified business, although the improvement in
its mining-contractor business was offset by weakness in its
coal-mining business in the low coal-price environment. BUMA's
financial profile is also slightly stronger than that of ABM.
BUMA has better revenue visibility than Emeco, an Australia-based
equipment-rental company, and a more stable business model that
stems from its long-term contracts with miners and integration in
the production stage. Emeco's financial profile has improved over
the last few years and is now comparable with that of BUMA.
However, BUMA benefits from the stickiness of its coal-mining
contracts, unlike Emeco, underscoring the one-notch differential
between the two ratings.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Volume to decline by over 20% in 2020, followed by a recovery
of 19% in 2021 and 10% in 2022
-- Blended mining rates fall by 6% in 2020, and recover by 5% in
2021. Rates remain constant after 2021, reflecting Fitch's
coal-price assumptions of USD32.5 per tonne in 2021 and USD32
per tonne thereafter;
-- Costs of goods sold to decline and remain at around
USD1.23/bcm in from 2020 to 2023 (2019: USD1.38/bcm);
-- Capex of USD30 million in 2020, USD100 million a year in 2021
2022 and USD110 million in 2023;
-- No dividend payouts through to 2023.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Fitch does not expect positive rating action in the near-term
due to the Negative Outlook on BUMA's IDR;
-- The Outlook will be revised to Stable if BUMA is able to
sustain credit metrics at levels stronger than Fitch’s
negative sensitivities from 2021. This would be driven by
maintaining volume as it substitutes the declining volume from
existing counterparties with new contracts.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Weakening market position, including failure to retain major
customers, as well as contract volume and cash flow generation
falling short of Fitch's expectations, leading to
deteriorating credit metrics;
-- FFO net leverage sustained above 3.3x.
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
Refinancing to Tackle Tight Liquidity: BUMA's cash balance was
USD146 million as of end-September 2020, and Fitch expects BUMA to
require refinancing to meet the majority of debt maturities after
factoring in the internal cash generation. Fitch expects BUMA to
address its tightening liquidity in the short term as its USD350
million of notes are due by February 2022 and USD58 million of bank
loans are due in November 2021.
The company does not have any undrawn, committed bank facilities;
however, Fitch expects BUMA to be able to secure bank credit
facilities or access debt capital markets given BUMA's proven
operational record.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.
PANDITA INDUSTRIES: S&P Withdraws 'B-' Issuer Credit Rating
-----------------------------------------------------------
S&P Global Ratings withdrew its 'B-'issuer credit rating on Pandita
Industries Ltd. at the company's request. S&P also withdrew its
'B-' issue rating on Pandita's proposed U.S.-dollar-denominated
bond.
At the time of withdrawal, the Indonesia-based chemicals company
still had Indonesian-rupiah-denominated medium-term notes worth
about US$67 million due in July 2021. The notes were issued by PT
Tridomain Performance Materials (TPM), which is 72.50%-owned by
Pandita, and remain outstanding after Pandita withdrew plans for
its U.S.-dollar-denominated bond issuance in August 2020, in the
absence of meaningful market response.
=================
S I N G A P O R E
=================
AVATION PLC: S&P Downgrades LT ICR to CCC-, On Watch Negative
-------------------------------------------------------------
On Jan. 22, 2021, S&P Global Ratings lowered its long-term issuer
credit rating on Avation PLC to 'CCC-' from 'CCC'. S&P also lowered
its long-term issue rating on the Singapore-headquartered aircraft
lessor's senior unsecured notes to 'CC' from 'CCC-' based on the
modest recovery ratings on the notes. The ratings remain on
CreditWatch with negative implications.
The CreditWatch with negative implications reflects Avation's very
weak liquidity and shortening time to maturity. It also reflects
the increasing potential for a debt restructuring, which S&P would
regard as distressed, in the next three months.
The downgrade reflects elevated refinancing risk on Avation's U.S.
dollar-denominated notes. The company has started discussions on
the refinancing options of its US$342.6 million senior unsecured
notes maturing on May 15, 2021. However, limited progress has been
made over the past few months. S&P said, "With less than four
months remaining to maturity, we believe bondholders may be
inclined to accept changes in the terms of the instrument without
adequate offsetting compensation. Therefore, we believe the
likelihood is high that the company will engage in a transaction
that we consider as distressed."
Given Avation's large refinancing requirements and low operating
cash flows, our assessment of the company's liquidity remains very
weak. S&P said, "Over the next four months, we anticipate Avation
will need more than US$400 million to cover its maturing debt and
scheduled amortization, elevating the prospects of a conventional
default. The company has deferred some loan amortization with its
banks, but it remains current on payment of coupon interest and its
other ongoing obligations. Still, the US$125 million in cash and
operating cash flows that we estimate as a liquidity source will be
insufficient, with a cash deficit that we forecast to be over
US$300 million."
S&P views the company as more susceptible to weaker operating
conditions due to the COVID-19 pandemic, compared with other rated
lessors, given its smaller size and higher lessee concentration.
Avation repossessed 11 turboprops from Virgin Australia Holdings
Ltd. in 2020, and Philippine Airlines announced a restructuring in
November. That resulted in a reduction of lease rates. Further
lease adjustments at reduced rates, aircraft repossessions, lease
deferments will eat into Avation's balance sheet and chalk up
higher impairment charges.
Environmental, social, and governance (ESG) credit factors for this
credit rating change:
-- Health and safety
The CreditWatch with negative implications reflects the shortening
time to maturity and the increasing potential for a debt
restructuring, which we would regard as distressed, over the next
three months.
GRAB HOLDINGS: Moody's Completes Review, Retains B3 CFR
-------------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of Grab Holdings Inc and other ratings that are associated
with the same analytical unit. The review was conducted through a
portfolio review discussion held on January 19, 2021 in which
Moody's reassessed the appropriateness of the ratings in the
context of the relevant principal methodology(ies), recent
developments, and a comparison of the financial and operating
profile to similarly rated peers. The review did not involve a
rating committee. Since January 1, 2019, Moody's practice has been
to issue a press release following each periodic review to announce
its completion.
This publication does not announce a credit rating action and is
not an indication of whether or not a credit rating action is
likely in the near future. Credit ratings and outlook/review status
cannot be changed in a portfolio review and hence are not impacted
by this announcement.
Key rating considerations.
Grab Holdings Inc's B3 corporate family rating reflects its good
liquidity profile, supported by substantial cash holdings which
should be sufficient to fund sizeable operating losses and cash
burn over more than the next 2-3 years. The rating also reflects
Moody's expectation of narrowing cash burn as the company continues
to rationalize costs. However, intense competition in its food
delivery business and investments in its nascent digital financial
services business will temper overall profitability over the next
2-3 years.
At the same time, the rating considers Grab's leading position in
key ride-hailing and food delivery markets across Southeast Asia
which positions it well to capitalize on long-term growth
prospects.
The rating remains constrained by the company's complex corporate
structure and redemption risk associated with its convertible
redeemable preference shares.
The principal methodology used for this review was Business and
Consumer Service Industry published in October 2016.
PUMA ENERGY: Fitch Withdraws BB-(EXP) Sr. Unsec. Bond Issue Rating
------------------------------------------------------------------
Fitch Ratings has withdrawn Puma International Financing S.A.'s
expected 'BB-(EXP)' senior unsecured rating for a prospective
five-year bond that was assigned on 21 September 2020.
The rating has been withdrawn because Puma Energy Holdings Pte. Ltd
(BB-/Rating Watch Negative) has decided not to proceed with the
issue and the bond issue was cancelled.
Puma Energy's other ratings are unaffected by this withdrawal.
KEY RATING DRIVERS
N/A
RATING SENSITIVITIES
N/A
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.
[*] SINGAPORE: Fewer Firms Wound Up Last Year in Spite of Pandemic
------------------------------------------------------------------
Joyce Lim at The Strait Times reports that the pandemic dealt a
fatal blow to many businesses last year yet the overall number of
firms that went belly up defied expectations to fall to its lowest
level in five years.
The shutters came down on 43,335 business entities last year,
notably fewer than the 47,504 in 2019, the report discloses citing
Accounting and Corporate Regulatory Authority (Acra) data. It was
the lowest number since 2016, when 60,750 were recorded.
According to the report, figures from the Law Ministry's Insolvency
Office website also showed corporate insolvency numbers fell, with
206 applications filed for winding up between January and November
last year, down from 368 in the same period in 2019. Analysts
attributed the low numbers to government support and relief schemes
which, they said, helped to cushion some of the impact of the
pandemic and possibly stopped or delayed the tide of potential
bankruptcies, The Strait Times relays.
"There was unprecedented policy support last year and some of the
measures were extended into 2021, so that may have held the
bankruptcy and liquidation number at bay," the report quotes OCBC
Bank chief economist Selena Ling as saying. "The real test will
come when the support measures wind down. It would depend on the
recovery and progress of vaccination efforts."
Maybank Kim Eng senior economist Chua Hak Bin added: "Most
businesses treated the pandemic as a temporary shock and took
cost-cutting measures."
Dr. Chua thinks the economy is past its worst and slowly
recovering, the report relays. "The Government may have to continue
extending fiscal support for hardest hit sectors due to border
controls, particularly aviation and hospitality. Other sectors,
including retail and food and beverage, are on stronger footing,"
Dr. Chua, as cited by The Straits Times, added.
Some well-known casualties last year included the closing of
home-grown department store Robinsons and retail chain Sportslink.
Robinsons' operator was put under a creditors' voluntary winding-up
while Sportslink was forced to shut after the High Court granted an
application by Adidas Singapore to wind up the company for a debt
of over SGD1 million, recalls The Straits Times.
There were 181 business entities put under creditors' voluntary
winding up last year, 52% more than in 2019.
Acra said the number of members voluntary winding up was down to
473 last year, from 607 in 2019 and 655 in 2018, The Straits Times
adds.
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S O U T H K O R E A
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MAGNACHIP SEMICONDUCTOR: Moody's Completes Review, Keeps B1 Rating
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Moody's Investors Service has completed a periodic review of the
ratings of MagnaChip Semiconductor Corporation and other ratings
that are associated with the same analytical unit. The review was
conducted through a portfolio review discussion held on January 19,
2021 in which Moody's reassessed the appropriateness of the ratings
in the context of the relevant principal methodology(ies), recent
developments, and a comparison of the financial and operating
profile to similarly rated peers. The review did not involve a
rating committee. Since January 1, 2019, Moody's practice has been
to issue a press release following each periodic review to announce
its completion.
This publication does not announce a credit rating action and is
not an indication of whether or not a credit rating action is
likely in the near future. Credit ratings and outlook/review status
cannot be changed in a portfolio review and hence are not impacted
by this announcement.
Key rating considerations.
MagnaChip Semiconductor Corporation's B1 rating reflects the good
growth prospects and improving profitability in its core display
and power businesses. The company's credit quality is also
supported by its healthy balance sheet with a large liquidity
buffer. In addition, Its business model does not require
substantial capital spending, which will allow it to generate
positive free cash flow.
At the same time, the strengths are counterbalanced by the
company's small scale, and high customer and business
concentrations. MagnaChip is also exposed to the volatile and
competitive consumer electronics industry, and changes in
end-customer demand.
The principal methodology used for this review was Semiconductor
Methodology published in December 2020.
*********
S U B S C R I P T I O N I N F O R M A T I O N
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Copyright 2021. All rights reserved. ISSN: 1520-9482.
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