/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/210412.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, April 12, 2021, Vol. 24, No. 67 Headlines A U S T R A L I A CULTURE MAP: Second Creditors' Meeting Set for April 16 ENCOREFX INC: Court Converts Case to CCAA Proceedings GREENSILL CAPITAL: U.S. Trustee Appoints Creditors' Committee KANKI SEA: Second Creditors' Meeting Set for April 16 LIBERTY PRIME 2021-1: Moody's Rates AUD3MM Class F Notes 'B2' NICKAZ CONSTRUCTIONS: First Creditors' Meeting Set for April 19 ONESTEEL MANUFACTURING: Credit Suisse Seeks to Wind Up Firms OZMEN ENTERTAINMENT: Second Creditors' Meeting Set for April 16 ROBERTS PLUMBING: Second Creditors' Meeting Set for April 16 WINDHOIST AUSTRALIA: Second Creditors' Meeting Set for April 16 ZIP MASTER 2021-1: Moody's Gives B2 Rating to AUD12.5M Cl. E Notes C H I N A CHINA FORTUNE: Creditors Agree on Payment Deadline Extension IDEANOMICS INC: Incurs $106 Million Net Loss in 2020 REMARK HOLDINGS: Incurs $13.7 Million Net Loss in 2020 RONSHINE CHINA: Moody's Affirms B1 Corp. Family Rating ZHENRO PROPERTIES: Fitch Rates Proposed 364-day USD Bonds 'B+' I N D I A ALAYNA INDUSTRIES: CRISIL Migrates D Ratings to Not Cooperating APL MACHINERY: CRISIL Migrates D Debt Rating to Not Cooperating B.N. INDUSTRIES: Ind-Ra Affirms B+ Issuer Rating, Outlook Stable BONTON SOFTWARES: Ind-Ra Hikes Long-Term Issuer Rating to 'BB' COTTON BLOSSOM: Ind-Ra Affirms 'D' Long-Term Issuer Rating GUPTA STEEL: CRISIL Migrates B+ Rating from Not Cooperating GURUKRUPA COTTON: CRISIL Assigns B+ Rating to INR9.5cr Cash Loan HARIMAN SEEDS: CRISIL Migrates B+ Debt Ratings to Not Cooperating INDORE TABLE: Ind-Ra Keeps 'D' LT Issuer Rating in Non-Cooperating KELTECH INFRASTRUCTURE: CRISIL Keeps D Rating in Not Cooperating KUMAR SPINTEX: Ind-Ra Affirms BB- LT Issuer Rating, Outlook Stable LAKSHMIKANTHA SPINNERS: CRISIL Keeps D Ratings in Not Cooperating LAVISH EXIM: Ind-Ra Keeps 'D' Bank Loan Rating in Non-Cooperating LOGON INDIA: CRISIL Migrates D Debt Ratings to Not Cooperating M/S GEORGE: Ind-Ra Moves BB- LT Issuer Rating to Non-Cooperating MAGIC AUTO: Ind-Ra Affirms & Withdraws BB+ Long-Term Issuer Rating MANJUSHA HEALTHCARE: CRISIL Moves D Rating to Not Cooperating MEDICHECK INFO: CRISIL Withdraws B- Rating on INR7cr Loans MELSTAR INFORMATION: CRISIL Keeps D Ratings in Not Cooperating MY CAR: CRISIL Keeps D Debt Ratings in Not Cooperating Category NIRMAN INFRA: CRISIL Withdraws B+ Rating on INR5cr Cash Loan NIRVANA HAMMOCKS: CRISIL Migrates B Rating to Not Cooperating PAGODA STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating PANCHDEO FLOUR: CRISIL Assigns B+ Rating to INR6.0cr New Loan PARACOAT PRODUCTS: Ind-Ra Lowers Long-Term Issuer Rating to 'BB' PRABIR FOODSTUFF: CRISIL Keeps D Debt Ratings in Not Cooperating RAJASTHAN METALS: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating RAJSHRI IRON: Ind-Ra Moves B+ LT Issuer Rating to Non-Cooperating RAM LAL: CRISIL Migrates D Debt Ratings to Not Cooperating RIYA IMPEX: Ind-Ra Moves 'B' LT Issuer Rating to Non-Cooperating ROHIT COLONISERS: CRISIL Withdraws B- Rating on INR19.29cr Loan ROYAL PLAZA: CRISIL Migrates D Debt Rating to Not Cooperating SALASAR EXTERIORS: CRISIL Withdraws D Rating on INR12cr Loans SHIVSHAKTI BARRELS: Ind-Ra Cuts Long-Term Issuer Rating to 'C' SUNDARAM MULTI: CRISIL Keeps D Debt Ratings in Not Cooperating SURYA PANEL: CRISIL Reaffirms B- Rating on INR21cr Loans TAMILNADU JAI: CRISIL Keeps D Debt Ratings in Not Cooperating TNB POLYMERS: Ind-Ra Moves BB- LT Issuer Rating to Non-Cooperating VINTEGRATE TECHNOLOGY: CRISIL Moves D Ratings to Not Cooperating VISHAL SPINTEX: Ind-Ra Affirms BB LT Issuer Rating, Outlook Stable WESTERN INDIA: CARE Moves C Debt Rating to Not Cooperating I N D O N E S I A INDIKA ENERGY: Full Year Net Loss Widens to US$117.5MM in 2020 SAKA ENERGI: Fitch Affirms 'B+' LongTerm IDR, Outlook Negative J A P A N [*] JAPAN: More Than 700 Eateries Fail in 2020 Amid Pandemic S I N G A P O R E KRISENERGY: Shareholders Call for EGM Over Restructuring Concerns V I E T N A M ANZ BANK: Fitch Alters Outlook on BB Foreign Currency IDR to Pos. BIM LAND: Moody's Assigns First Time B2 Corp Family Rating STANDARD CHARTERED: Fitch Alters Outlook on 'BB' IDR to Positive VIETCOMBANK: Fitch Alters Outlook on 'BB-' LT IDR to Positive VIETINBANK: Fitch Alters Outlook on 'BB-' LT IDR to Positive - - - - - ================= A U S T R A L I A ================= CULTURE MAP: Second Creditors' Meeting Set for April 16 ------------------------------------------------------- A second meeting of creditors in the proceedings of Culture Map Pty Ltd has been set for April 16, 2021, at 3:30 p.m. via telephone facilities. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by April 15, 2021, at 4:00 p.m. Schon Gregory Condon of Condon Associates was appointed as administrator of Culture Map on March 3, 2021. ENCOREFX INC: Court Converts Case to CCAA Proceedings ----------------------------------------------------- EncoreFX Inc., on March 30, 2020, filed an assignment in bankruptcy pursuant to Section 49(1) of the Bankruptcy and Insolvency Act of Canada (the "BIA"). EY was appointed as the Licensed Insolvency Trustee, subject to affirmation of same at the First Meeting of Creditors. The Supreme Court of British Columbia, on March 30, 2021, granted a request by EncoreFX's trustee to convert the bankruptcy proceeding of the EncoreFX Inc. to proceedings under the Companies Creditors Arrangement Act (Canada), as amended. The conversion order inter alia: (a) appointed Ernst & Young Inc. as Monitor in the CCAA Proceedings of the Company; (b) provided the Company with an initial 10-day stay of proceedings which may be extended by the Court from time- to-time; and (c) pronounced that all previous orders of the Court with respect to the bankruptcy proceedings apply and are continued under the CCAA proceedings. A copy of the Conversion Order and other documents relating to the insolvency proceedings of the Company can be found available on the Monitor's website at https://www.ey.com/ca/EncoreFX The Monitor intends to apply to the Court for authorization to: (a) file Plan of Compromise and Arrangement with the Court under which creditors will receive a partial payment of their claim in full satisfaction of their claim; (b) administer a "Claims Process" to determine the claims of Creditors and establish a claims bar date by which creditors must file a "Proof of Claim" in the CCAA proceedings; and (c) establish a procedure for the Monitor to call, hold and conduct a meeting of creditors to consider and vote on the Plan. Beginning in March 2020, global FX markets began to observe atypical levels of volatility mainly driven by the impact that COVID-19 was having on the global economy. In particular, the US Dollar (USD) strengthened in a significant way against some of the world's most traded currencies, including against the Canadian, Australian and New Zealand dollars in which the majority of the EncoreFX Derivatives were booked. Due to this extreme market volatility, a number of EncoreFX's clients (and its subsidiaries' clients) were out-the-money ("OTM") on their transactions; and as a consequence, EncoreFX was left OTM with its Liquidity Providers. Due to this extreme market volatility, a number of EncoreFX's clients -- and its subsidiaries' clients -- were OTM on their transactions; and as a consequence, EncoreFX was left OTM with its Liquidity Providers. Under the terms of its International Swaps and Derivatives Association Inc Agreements ("ISDA"), EncoreFX was required to pay significant additional margin to its Liquidity Providers to cover the value of OTM contracts. Many of EncoreFX's clients had exceeded the OTM thresholds outlined in their Credit Facility Agreements and were subject to margin calls (the "OTM Clients"). The Trustee was advised that EncoreFX attempted to work with many of the OTM Clients to address margin calls owing however many clients' businesses had been negatively impacted by COVID-19 and they were unable to honour the terms of their Credit Facility Agreements. In the days leading up to the bankruptcy, the Trustee was advised that EncoreFX management determined that even if all OTM amounts owing could be collected from clients over time, there was no short-term liquidity available to the Company to meet its obligations and EncoreFX made the decision suspend all trading activity as at Sunday, March 29, 2020 (prior to the opening of trading on Monday, March 30, 2020). The Trustee notes that it was first approached by the Company with respect to the financial distress of the Company on March 26th, 2020; and thereafter, in the days that followed entertained several discussions to consider various restructuring options available to EncoreFX both formally and informally. The decision to suspend trading (with respect to new transactions) and to file the assignment into bankruptcy was made on eve of March 29th (as noted above, the day before markets resumed trading the following Monday). The Australian and New Zealand subsidiaries were also placed into Voluntary Administration (formal insolvency proceedings in those countries). Ernst & Young Inc. is acting as the Administrator in insolvency proceedings of the Australia and New Zealand entities. Ernst & Young can be reached at: Ernst & Young Inc. 700 West Georgia Street Vancouver, BC V7Y 1C7 Tel: +1 604-891-8200 Fax: +1 604-890-3530 Jason Eckford Monitor's Representative Tel: 604-648-3671 Email: jason.eckford@parthenon.eye.com Mike Bell (Canada) Tel: 604-899-3566 Email: mike.bell@partheon.ey.com Peter Venetsanos (Canada) Tel: 604-648-3665 Email: peter.venetsanos@parthenon.ey.com Marko Gordic (Canada) Tel: 604-891-8280 Email: marko.gordic@parthenon.ey.com Kevin Brennan (Canada) Tel: 604-899-3551 Email: kevin.b.brennan@partheon.ey.com Adam Nikitins (Australia) Email: adam.nikitins@au.ey.com Stewart McCallum (Australia) Email: stewart.mccallum@au.ey.com Ress Logan (New Zealand) Email: Rees.Logan@nz.ey.com Conflict counsel to E&Y: Bridgehouse Law LLP 9th Floor, 900 West Hastings Street Vancouver, BC V6C 1E5 Benjamin La Borie Tel: 236-521-6150 Fax: 604-684-0916 Email: blaborie@bridgehouselaw.ca Counsel to the Company: MLT Aikins LLP Suite 2600, 1066 West Hastings Street Vancouver, BC V6E 3X1 William E. J. SKelly Tel: 604-608-4597 Fax: 604-682-7131 Email: wskelly@mltaikins.com Dana M. Nowak Tel: 780-969-3506 Fax: 780-969-3549 Email: dnowak@mltaikins.com Mandi Deren-Dube Tel: 780-969-3518 Fax: 780-969-3549 Email: MDerendube@mltaikins.com Arooj Shah Tel: 780-969-5068 Fax: 780-969-3549 Email: ashah@mltaikins.com Vanessa A. Mensink Tel: 604-604-4582 Fax: 604-682-7131 Email: vmensink@mltaikins.com EncoreFX Inc. -- https://www.globalreachgroup.ca/corporate -- is a company that specializes in financial services. GREENSILL CAPITAL: U.S. Trustee Appoints Creditors' Committee ------------------------------------------------------------- The U.S. Trustee for Region 2 on April 7 appointed an official committee to represent unsecured creditors in the Chapter 11 case of Greensill Capital, Inc. The committee members are: 1. Rachelle Bower 330 West 56th Street New York, NY 10019 E-mail: rbower1515@gmail.com 2. Neil Hughes 299 Henry Street, Apartment 2A Brooklyn, NY 11201 Phone: 727-459-6352 E-mail: neil.hughes@gmail.com 3. Margaret Stock 77 Park Avenue, Apartment 1515 Hoboken, NJ 07030 E-mail: margaretmstock@gmail.com Official creditors' committees serve as fiduciaries to the general population of creditors they represent. They may investigate the debtor's business and financial affairs. Committees have the right to employ legal counsel, accountants and financial advisors at a debtor's expense. About Greensill Capital Greensill Capital is an independent financial services firm and principal investor group based in the United Kingdom and Australia. It offers structures trade finance, working capital optimization, specialty financing and contract monetization. Greensill Capital Pty is the parent company for the Greensill Group. Greensill began to unravel in March 2021 when its main insurer stopped providing credit insurance on US$4.1 billion of debt in portfolios it had created for clients including Swiss bank Credit Suisse. Greensill Capital (UK) Limited and Greensill Capital Management Company (UK) Limited filed for insolvency in Britain on March 8, 2021. Matthew James Byrnes, Philip Campbell-Wilson and Michael McCann of Grant Thornton were appointed as administrators. Greensill Capital Pty Ltd. filed insolvency proceedings in Australia. Matt Byrnes, Phil Campbell-Wilson, and Michael McCann of Grant Thornton Australia Ltd, as voluntary administrators in Australia. Greensill Capital Inc. filed for Chapter 11 bankruptcy (Bankr. S.D.N.Y. Case No. 21-10561) on March 25, 2021. Jill M. Frizzley, director, signed the petition. In the petition, the Debtor listed assets of between $10 million and $50 million and liabilities of between $50 million and $100 million. The case is handled by Judge Michael E. Wiles. Togut, Segal & Segal LLP, led by Kyle J. Ortiz, is the Debtor's counsel. KANKI SEA: Second Creditors' Meeting Set for April 16 ----------------------------------------------------- A second meeting of creditors in the proceedings of Kanki Sea Tourism Hospitality & Entertainment Pty Ltd, trading as Seadeck Australia, has been set for April 16, 2021, at 3:00 p.m. via telephone facilities. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by April 15, 2021, at 4:00 p.m. Schon Gregory Condon of Condon Associates was appointed as administrator of Kanki Sea Tourism Hospitality on March 3, 2021. LIBERTY PRIME 2021-1: Moody's Rates AUD3MM Class F Notes 'B2' ------------------------------------------------------------- Moody's Investors Service has assigned the following definitive ratings to the notes issued by Liberty Funding Pty Limited in respect of Liberty PRIME Series 2021-1. Issuer: Liberty PRIME Series 2021-1 AUD850.00 million Class A1 Notes, Assigned Aaa (sf) AUD44.00 million Class A2 Notes, Assigned Aaa (sf) AUD43.00 million Class AB Notes, Assigned Aaa (sf) AUD30.00 million Class B Notes, Assigned Aa2 (sf) AUD7.00 million Class C Notes, Assigned A2 (sf) AUD11.00 million Class D Notes, Assigned Baa1 (sf) AUD11.00 million Class E Notes, Assigned Ba1 (sf) AUD3.00 million Class F Notes, Assigned B2 (sf) The AUD1.00 million Class G Notes are not rated by Moody's. The transaction is a securitisation of Australian residential mortgages loans. All mortgages were originated and are serviced by Liberty Financial Pty Ltd (Liberty, unrated). The transaction includes a three month prefunding period, whereby Liberty Funding Pty Ltd will issue notes up to AUD1,000.0 million, based on the initial pool of AUD750.0 million. During the pre-funding period, additional loans may be sold into the trust, up to the pre-funding amount of AUD250.0 million, subject to certain portfolio parameters and the eligibility criteria. Liberty is an Australian non-bank lender. It started originating non-conforming residential mortgages in 1997. It subsequently expanded into prime residential mortgage origination, as well as, among others, auto loans, small commercial mortgage loans and personal loans. Residential mortgages remain Liberty's predominant business. As of December 2020, it had a portfolio of Australian mortgage assets over AUD8.4 billion. RATINGS RATIONALE The definitive ratings take into account, among other factors, evaluation of the underlying receivables, the prefunding period, the evaluation of the capital structure and credit enhancement provided to the notes, the availability of excess spread over the life of the transaction, the liquidity facility in the amount of 1.00% of the notes balance, the legal structure, and the credit strength and experience of Liberty as Servicer. Moody's MILAN credit enhancement (MILAN CE) for the collateral pool is 6.3%, while the expected loss is 0.80%. MILAN CE represents the loss Moody's expect the portfolio to suffer in a severe recessionary scenario, and does not take into account structural features of the transaction. The expected loss represents a stressed, through-the-cycle loss relative to Australian historical data. The coronavirus pandemic has had a significant impact on economic activity. Although global economies have shown a remarkable degree of resilience to date and are returning to growth, the uneven effects on individual businesses, sectors and regions will continue throughout 2021 and will endure as a challenge to the world's economies well beyond the end of the year. While persistent virus fears remain the main risk for a recovery in demand, the economy will recover faster if vaccines and further fiscal and monetary policy responses bring forward a normalization of activity. As a result, there is a heightened degree of uncertainty around Moody's forecasts. Moody's analysis has considered the effect on the performance of consumer assets from a gradual and unbalanced recovery in Australian economic activity. Moody's regards the coronavirus outbreak as a social risk under its ESG framework, given the substantial implications for public health and safety. The key transactional features are as follows: Class A1 Notes and Class A2 Notes benefit from 15.0% and 10.6% note subordination respectively. The notes will initially be repaid sequentially. Once stepdown conditions are met, all Notes will receive a pro-rata share of principal payments. Class G Notes principle allocation is paid to the most junior rated tranche. The stepdown conditions include, among others, the payment date falling in April 2023, and Class A1 Notes subordination being at least equal to 24%. Principal pay-down will revert to sequential once the aggregate loan amount is at 20% or less of the aggregate loan amount at closing, or on or following the payment date in April 2026. The guarantee fee reserve account, which is unfunded at closing and will build up to a limit of 0.30% of the issued notional from the bottom of the interest waterfall prior to interest paid to the Class G Notes noteholders, if the guarantee fee reserve test is met. The guarantee fee reserve test is met at closing. The reserve account will firstly be available to meet losses on the loans and charge-offs against the notes. Secondly, it can be used to cover any required payment shortfalls that remain after drawing on principal and the liquidity facility. Any reserve account balance used can be reimbursed to its limit from future excess income. The key features of the mortgage loan pool are as follows: The portfolio has a scheduled LTV ratio of 68.0%, with a proportion of loans with a scheduled LTV ratio above 80.0% (14.7%) and above 90% (2.4%). Around 22.1% of the loans in the portfolio were extended to self-employed borrowers. All loans in the portfolio were extended on a verified income documentation basis. The portfolio contains no exposure borrowers with prior credit impairment (default, judgment or bankruptcy). Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Approach to Rating RMBS Using the MILAN Framework" published in December 2020. Factors that would lead to an upgrade or downgrade of the ratings: Levels of credit protection that are greater than necessary to protect investors against current expectations of loss could lead to an upgrade of the ratings. Moody's current expectations of loss could be better than its original expectations because of fewer defaults by underlying obligors or higher recoveries on defaulted loans. The Australian job market and the housing market are primary drivers of performance. A factor that could lead to a downgrade of the notes is worse-than-expected collateral performance. Other reasons for performance worse than Moody's expects include poor servicing, error on the part of transaction parties, a deterioration in credit quality of transaction counterparties, fraud and lack of transactional governance. NICKAZ CONSTRUCTIONS: First Creditors' Meeting Set for April 19 --------------------------------------------------------------- A first meeting of the creditors in the proceedings of Nickaz Constructions Pty Ltd, trading as Nickaz Design & Constructions, will be held on April 19, 2021, at 11:00 a.m. at the offices of Hall Chadwick, Level 40, 2 Park Street, in Sydney, NSW. Steven Arthur Gladman of Hall Chadwick was appointed as administrator of Nickaz Constructions on April 7, 2021. ONESTEEL MANUFACTURING: Credit Suisse Seeks to Wind Up Firms ------------------------------------------------------------ Livemint.com reports that Credit Suisse Group AG has commenced court action in Australia seeking the liquidation of two companies owned by Sanjeev Gupta, as part of its global push to recoup capital lent to Gupta's metals empire via the failed Greensill Capital. Livemint.com relates that Citibank N.A.'s London branch filed the application on behalf of Credit Suisse in the New South Wales Supreme Court on April 6 seeking to wind up two entities -- Onesteel Manufacturing Pty Ltd., which operates the Whyalla steel operation in South Australia, and Tahmoor Coal Pty Ltd. A first directions hearing on the action is scheduled for May 6, a spokeswoman for the court said by email. "Any proceedings instituted by Credit Suisse will be vigorously defended," a spokesman for Gupta's GFG Alliance Ltd. in Australia said by email, Livemint.com relays. "GFG Alliance's Australian Mining and Primary Steel (MPS) business, which includes Onesteel Manufacturing and Tahmoor Coal, does not conduct any financing with Credit Suisse and has not sold receivables to Credit Suisse." GFG Alliance is in talks with Greensill's administrators, Grant Thornton, and other stakeholders to negotiate a way forward, the spokesman said, adding that MPS was well advanced on plans to refinance its Greensill facilities. "The Australian businesses are performing well and generating positive cash flow, supported by the operational improvements we've made, and strong steel and iron ore markets." According to Livemint.com, Mr. Gupta earlier this month urged creditors not to "destroy value" by calling in debts, and said he would battle through litigation if needed, as the industrialist scrambles to save his metals empire after the collapse of its biggest lender. GFG employs about 35,000 people in 30 countries, with large metal and steel businesses stretching from Romania to Australia. Uncertainty now hangs over those jobs, given the group's mammoth $5 billion debt to Greensill. Livemint.com says Credit Suisse has also started legal action against one of Gupta's key commodities-trading units. An application to wind up Liberty Commodities Ltd. was filed in the U.K.'s insolvency court late on April 6 by a unit of Citigroup. Citi was acting under instructions from Credit Suisse, according to a person familiar with the matter who asked not to be identified discussing private information, Livemint.com adds. OneSteel Manufacturing Pty Limited manufactures steel products. The Company offers a variety of products including steel pipes, valves, and sheets. OZMEN ENTERTAINMENT: Second Creditors' Meeting Set for April 16 --------------------------------------------------------------- A second meeting of creditors in the proceedings of Ozmen Entertainment Group Pty Ltd has been set for April 16, 2021, at 2:30 p.m. at the offices of Condon Associates, Level 6, 87 Marsden Street, in Parramatta, 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 April 15, 2021, at 4:00 p.m. Schon Gregory Condon of Condon Associates was appointed as administrator of Ozmen Entertainment on March 3, 2021. ROBERTS PLUMBING: Second Creditors' Meeting Set for April 16 ------------------------------------------------------------ A second meeting of creditors in the proceedings of Roberts Plumbing & Contracting Pty Ltd has been set for April 16, 2021, at 11:00 a.m. via virtual meeting technology. 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 April 15, 2021, at 5:00 p.m. Cameron Shaw and Richard Albarran of Hall Chadwick were appointed as administrators of Roberts Plumbing on March 3, 2021. WINDHOIST AUSTRALIA: Second Creditors' Meeting Set for April 16 --------------------------------------------------------------- A second meeting of creditors in the proceedings of Windhoist Australia Pty Ltd has been set for April 16, 2021, at 10:00 a.m. via teleconference. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by April 15, 2021, at 4:00 p.m. John Ross Lindholm and Ryan Reginald Eagle of KPMG were appointed as administrators of Windhoist Australia on Feb. 21, 2021. ZIP MASTER 2021-1: Moody's Gives B2 Rating to AUD12.5M Cl. E Notes ------------------------------------------------------------------ Moody's Investors Service has assigned definitive ratings to notes issued by Perpetual Trustee Company Limited, as trustee of the Zip Master Trust. Issuer: Zip Master Trust Series 2021-1 AUD286.8 million Class A1 Notes, Assigned Aa2 (sf) AUD54.7 million Class A2 Notes, Assigned Aa2 (sf) AUD50.0 million Class B Notes, Assigned A2 (sf) AUD30.0 million Class C Notes, Assigned Baa2 (sf) AUD20.0 million Class D Notes, Assigned Ba2 (sf) AUD12.5 million Class E Notes, Assigned B2 (sf) The AUD21.0 million Class F Notes and AUD25.0 million Class G Notes are not rated by Moody's. DESCRIPTION OF TRANSACTION AND ISSUER The Master Trust is a revolving cash securitisation of two types of revolving line of credit products with either full (Zip Pay) or initial (Zip Money) interest-free terms, more commonly known as 'buy-now-pay-later' receivables. All receivables were originated and are serviced by zipMoney Payments Pty Ltd (Zip, unrated, a wholly owned subsidiary of Zip Co Limited). Zip is an Australian non-bank fintech that was founded in 2013 as a buy-now-pay-later retail credit platform. Zip provides customers with a revolving line of credit to finance their retail purchase at a large variety of merchant partners. Series 2021-1 is the fourth issuance out of the Zip Master Trust. As is usual in master trust structures, Zip may designate additional accounts for assignment to the master trust. Series 2021-1 has an expected maturity date in April 2024. Principal collections will be retained and used to purchase substitution receivables for at least the first 24 months, and potentially up to 36 months, provided a "controlled accumulation period" or "rapid amortization" has not started. Additionally, the master trust may be in a position to buy receivables from principal allocation to other series even if Series 2021-1 has entered controlled accumulation, scheduled amortisation or rapid amortisation. The optional controlled accumulation period for the 2021-1 series can begin from April 2023. If a controlled accumulation notice is served, Series 2021-1 principal allocations will be retained in a ledger, to be distributed at the expected maturity date. If the Series 2021-1 notes remain outstanding after that date, the series will enter the scheduled amortisation period, during which Series 2021-1 principal allocations will be distributed on a pass-through basis. The scheduled amortisation period ends on the scheduled maturity date in April 2025. The legal final maturity date is April 2033, seven years after the scheduled maturity date. As of the December 30, 2020, the securitised pool consisted of 1,604,452 buy-now-pay-later revolving credit accounts. The total outstanding balance of the receivables is AUD1,054,448,609 comprising AUD483,546,448 Zip Money receivables (46.3% of the total pool) and AUD567,198,684 Zip Pay receivables (53.7% of the total pool). The maximum credit limit is AUD50,000 for Zip Money accounts and AUD2,000 for Zip Pay accounts. The average account balance is AUD1,232 for Zip Money accounts and AUD468 for Zip Pay accounts. Approximately 97.8% of Zip Money accounts have a balance less than AUD5,000. Approximately 80.5% of Zip Pay accounts have a balance less than AUD1,000. RATINGS RATIONALE The definitive ratings take into account, among other factors: The limited amount of historical data. Zip was established in 2013, with significant origination growth beginning in 2017. The collateral performance data used in Moody's analysis reflects Zip's short origination history since July 2016 and does not cover a full economic cycle. The revolving nature of the master trust structure. The nature of the trust and the ability of the sponsor to add new accounts and new liabilities to the trust could introduce some variability in the quality of the securitised portfolio over time. The risk of a change in underwriting is partially mitigated by the average excess spread trigger. In addition, there are eligibility criteria as well as triggers and other structural features to mitigate portfolio deterioration. The high degree of dependency on Zip. Zip acts as the sponsor, originator, servicer and trust manager. In addition, given Zip's short operating history, it has a comparably weaker credit profile. These risks are mitigated by the inclusion of Perpetual Trustee Company Limited (unrated) as a standby servicer and sub-trust manager, as well as by various replacement and notification triggers. The credit enhancement levels for each class of notes: Class A-1 Notes -- 42.6%; Class A-2 Notes -- 31.7%; Class B Notes -- 21.7%; Class C Notes -- 15.7%; Class D Notes -- 11.7%; Class E Notes -- 9.2% The availability of a significant amount of excess spread over the life of the transaction. The minimum seller note size of 1%. These seller notes can provide the trust with protection against a number of events, including fraud and dilutions. Additionally, excess seller note interest and principal allocations will be used to cover any income shortfalls for Series 2021-1 and shortfalls on amortisation amounts for Series 2021-1. The liquidity facility in the amount of 1% of the note balance subject to a floor of AUD750,000. The coronavirus pandemic has had a significant impact on economic activity. Although global economies have shown a remarkable degree of resilience to date and are returning to growth, the uneven effects on individual businesses, sectors and regions will continue throughout 2021 and will endure as a challenge to the world's economies well beyond the end of the year. While persistent virus fears remain the main risk for a recovery in demand, the economy will recover faster if vaccines and further fiscal and monetary policy responses bring forward a normalization of activity. As a result, there is a heightened degree of uncertainty around Moody's forecasts. Moody's analysis has considered the effect on the performance of consumer assets from a gradual and unbalanced recovery in Australia economic activity. Moody's regards the coronavirus outbreak as a social risk under its ESG framework, given the substantial implications for public health and safety. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Approach to Rating Credit Card Receivables-Backed Securities" published in June 2020. Moody's credit card ABS rating methodology begins by developing a maximum loss that is consistent with an Aaa (sf) rating ("Aaa loss given sponsor default (LGSD)"), assuming that the sponsor has closed its revolving consumer loan accounts. This scenario is associated with sponsors that are in or near to default. For Zip Master Trust, the Aaa LGSD is 42.6%. The key parameters used to derive the Aaa LGSD are: charge off rates (current, long run and peak); payment rates (current and at the start of early amortisation), receivable yield rates (current, at the start of early amortisation and the compression level, due to potential asset-liability mismatches); servicing fees (current and stressed) and the minimum seller's interest (as per the documents). In a second step, the level of credit enhancement that is consistent with a Aaa (sf) rating is determined by lowering the Aaa LGSD by the applicable "dependency ratio". This ratio varies according to the sponsor's credit rating or counterparty risk assessment ("CR Assessment"), if available. The higher the sponsor's credit rating or CR Assessment as the case may be, the lower the dependency ratio. The ratio reflects the likelihood of the sponsor entering default. Higher rated sponsors will therefore require lower Aaa enhancement, all else being equal. The result is the minimum Aaa credit enhancement (CE), absent other counterparty or operational risks. For Zip Master Trust, the Moody's Aaa CE is based on Moody's undisclosed assessment of Zip's credit profile. For credit card-backed securities — with CE less than that consistent with a Aaa (sf) rating — Moody's adjusts the rating of the securities based on the level of credit enhancement available. Finally, for subordinate securities, additional adjustments are made to account for the higher severity of loss inherent, due to the smaller sizes and the ranking of those classes of securities. Factors That Would Lead to an Upgrade or Downgrade of the Ratings: Factors that could lead to an upgrade of the notes include better-than-expected collateral performance or improvement in the credit quality of the sponsor. A factor that could lead to a downgrade of the notes is worse-than-expected collateral performance. Specifically, if the charge off rate rises or the payment rate or yield falls significantly. A downgrade of the sponsor's CR Assessment could also lead to a downgrade of the rating of the Rated Notes, given the ongoing role of the bank sponsor as underwriter, originator, risk manager, servicer and collector. Other reasons that could lead to a downgrade include poor servicing, error on the part of transaction parties, a deterioration in the credit quality of transaction counterparties, or lack of transactional governance and fraud. Although certain triggers are in place to help decrease, to a certain extent, the exposure to the sponsor in its various roles, these will probably not fully mitigate the impact of a significant deterioration in the credit quality of the sponsor. Consequently, the originator's credit quality is always an important input in monitoring the transaction. ========= C H I N A ========= CHINA FORTUNE: Creditors Agree on Payment Deadline Extension ------------------------------------------------------------ Wang Juanjuan and Tang Ziyi at Caixin Global report that creditors of China Fortune Land Development Co. Ltd. have agreed to extend the payment deadline on CNY17.8 billion (US$2.7 billion) in debt after the property developer defaulted earlier this year. With the agreement and strong support from the government in North China's Hebei province, the developer has finally taken a step toward defusing its debt crisis, Caixin says. At an online meeting with China Fortune's creditor committee on April 7, Chief Financial Officer Wu Zhongbing announced that the company had CNY220 billion in outstanding interest-bearing debt as of that day, according to several creditors with knowledge of the matter, Caixin relays. Wu said the company had failed to pay CNY37 billion of the debt on time, including bank loans, trust loans and bonds issued overseas, Caixin discloses citing the company's exchange filings. China Fortune Land Development Co., Ltd. offers real estate development and investment services. The Company develops industrial parks and industrial town projects. China Fortune Land Development also provides related industrial solution services. IDEANOMICS INC: Incurs $106 Million Net Loss in 2020 ---------------------------------------------------- Ideanomics, Inc. filed with the Securities and Exchange Commission its Annual Report on Form 10-K disclosing a net loss of $106.04 million for the year ended Dec. 31, 2020, compared to a net loss of $96.83 million for the year ended Dec. 31, 2019. Revenue for the year was $26.8 million with sequential quarter over quarter growth demonstrating the growing strength of Ideanomics' business. EV revenue in 2020 was $19.5 million versus $2.7 million in 2019, an increase of $16.8 million or more than 600%. The 2020 revenues included its first sales of charging & battery systems, a part of the EV ecosystem that is very important to Ideanomics' S2F2C (Sales 2 Financing 2 Charging) business model. The Company expects revenues from charging systems to grow as WAVE, its inductive charging business acquired in January 2021, is included in its financial results starting this quarter. Revenues for the full year 2019 were $44.6 million, however $40.7 million was generated from the Digital Asset Management Services contract that produced no revenues in 2020 and this contract is not expected to produce any revenues for the foreseeable future. As of Dec. 31, 2020, the Company had $234.41 million in total assets, $32.64 million in total liabilities, $1.26 million in series A convertible redeemable preferred stock, $7.48 million in redeemable non-controlling interest, and $193.02 million in total equity. "We are very pleased with the transformation that took place this past year," said Alf Poor, CEO of Ideanomics. "Despite a year highlighted by COVID-19, we were able to build the groundwork for 2021 and beyond for Ideanomics and we are excited for what the future holds with our recent activity across the EV ecosystem and developments in EV charging infrastructure." A full-text copy of the Form 10-K is available for free at: https://bit.ly/3dSTlDH About Ideanomics Ideanomics is a global company focused on the convergence of financial services and industries experiencing technological disruption. Its Mobile Energy Global (MEG) division is a service provider which facilitates the adoption of electric vehicles by commercial fleet operators through offering vehicle procurement, finance and leasing, and energy management solutions under its innovative sales to financing to charging (S2F2C) business model. Ideanomics Capital is focused on disruptive fintech solutions and services across the financial services industry. Together, MEG and Ideanomics Capital provide their global customers and partners with leading technologies and services designed to improve transparency, efficiency, and accountability, and its shareholders with the opportunity to participate in high-potential, growth industries. The company is headquartered in New York, NY, with offices in Beijing, Hangzhou, and Qingdao, and operations in the U.S., China, Ukraine, and Malaysia. REMARK HOLDINGS: Incurs $13.7 Million Net Loss in 2020 ------------------------------------------------------ Remark Holdings, Inc. filed with the Securities and Exchange Commission its Annual Report on Form 10-K disclosing a net loss of $13.68 million on $10.14 million of net revenue for the year ended Dec. 31, 2020, compared to a net loss of $25.61 million on $5.02 million of net revenue for the year ended Dec. 31, 2019. As of Dec. 31, 2020, the Company had $11.31 million in total assets, $20.40 million in total liabilities, and a total stockholders' deficit of $9.09 million. Los Angeles, California-based Weinberg & Company, the Company's auditor since 2020, issued a "going concern" qualification in its report dated March 31, 2021, citing that the Company has suffered recurring losses from operations and negative cash flows from operating activities and has a negative working capital and a stockholders' deficit that raise substantial doubt about its ability to continue as a going concern. Management Commentary "After a challenging start to 2020 with COVID-19 lockdowns in both China and the United States, we saw significant positive momentum in our second half, and in particular, the fourth quarter. For the fourth quarter we reported nearly $5.0 million in revenue, representing more than ten times the $0.4 million recorded in the fourth quarter of 2019," noted Kai-Shing Tao, chairman and chief executive officer of Remark Holdings. "Demand for our AI solutions came from schools, retail outlets, bank branches, and corporate facilities and we expect demand momentum, particularly in the United States, to carry forward into 2021. Additionally, during the quarter we expanded channel partnerships which provide additional opportunities for a further acceleration of growth in 2021." "After doubling revenue in 2020, we are forecasting that we can further accelerate growth in 2021 by continuing to execute projects and bringing in new AI-driven opportunities. Our pipeline of domestic business opportunities is growing dramatically, and we plan to add additional channel partnerships in order to leverage our award winning software. Finally, we plan to fortify our balance sheet through a partial monetization of our stake in Sharecare in our second quarter to fund the many opportunities we are currently pursuing," concluded Mr. Tao. A full-text copy of the Form 10-K is available for free at: https://bit.ly/2PLN05b About Remark Holdings Remark Holdings, Inc. (NASDAQ: MARK) -- http://www.remarkholdings.com-- delivers an integrated suite of AI solutions that enable businesses and organizations to solve problems, reduce risk and deliver positive outcomes. The company's easy-to-install AI products are being rolled out in a wide range of applications within the retail, financial, public safety and workplace arenas. The company also owns and operates digital media properties that deliver relevant, dynamic content and ecommerce solutions. The company is headquartered in Las Vegas, Nevada, with additional operations in Los Angeles, California and in Beijing, Shanghai, Chengdu and Hangzhou, China. RONSHINE CHINA: Moody's Affirms B1 Corp. Family Rating ------------------------------------------------------ Moody's Investors Service has affirmed Ronshine China Holdings Limited's B1 corporate family rating and B2 senior unsecured ratings. The rating outlook remains stable. "The affirmation reflects our expectation that Ronshine's credit metrics will stabilize over the next 12-18 months, driven by growth in revenue and moderate recovery in gross margins," says Kelly Chen, a Moody's Assistant Vice President and Analyst. "At the same time, the stable outlook reflects our expectation that Ronshine can execute its sales plan, improve its profit margins and debt servicing ability, and maintain adequate liquidity over the next 12-18 months," adds Chen, Lead Analyst for Ronshine. RATINGS RATIONALE Ronshine's B1 CFR continues to reflect its growing scale and track record of developing properties in the Yangtze River Delta region and Fujian Province. The B1 CFR also takes into account the company's adequate liquidity, strong market position and strong sales execution ability in its key markets, including Hangzhou, Shanghai and Fuzhou. On the other hand, the rating is constrained by its low profitability and weak interest coverage, due to the company's rapid expansion. It also considers the company's increasing joint venture exposure, which lowers the transparency of its credit metrics. Moody's expects Ronshine's interest servicing ability, as measured by EBIT interest coverage, to improve to 2.0x over the next 12-18 months from a weak 1.5x in 2020. This is because its gross margin will gradually recover to around 15% from a weak level of 11% in 2020 given the company acquired projects at more reasonable costs over the past 2-3 years than previously. In addition, Ronshine's debt leverage, as measured by revenue/adjusted debt, will stay stable at around 60%-65% from 64% over the same period, as adjusted debt growth is likely to be largely offset by revenue growth. These credit metrics are largely comparable with the company's B1-rated property peers. Moody's expects Ronshine's total contracted sales to grow by around 5% over the next 12-18 months from RMB155 billion in 2020, supported by the company's good land bank quality. As of the end of 2020, around 82% of the land reserves is located in tier-1 and tier-2 cities in China. This sales increase will support moderate revenue growth. Ronshine's EBIT interest coverage deteriorated to 1.5x in 2020 from 3.2x in 2019, due to materially lower gross margins and delayed revenue recognition as a result of construction delays. The company's gross margin declined to 11% in 2020 from 24% in 2019, as the company recognized the sales of more low-margin projects in 2020. Many of these projects were acquired in 2016-2017 and were subsequently subject to regulatory price caps, which significantly constrained profitability. Ronshine's debt leverage also moderated to 64% in 2020 from a high base of 78% in 2019, as a result of increased debt funding for land spending in 2020 following a period of moderated land acquisitions. In 2020, the company spent attributable land costs of RMB28.4 billion, compared with RMB16.3 billion in 2019 and RMB7.1 billion in 2018, according to the company's filings. Ronshine's liquidity is good. As of the end of 2020, the company reported a cash balance of RMB29.9 billion, which covered 120% of its short-term debt as of the same date. Moody's expects Ronshine's cash balance, together with its operating cash flows, to be sufficient to cover its short-term debt, committed land premiums and dividend payment over the next 12 months. With respect to environmental, social and governance (ESG) factors, Ronshine's B1 CFR rating takes into consideration the company's ownership by its chairman, Mr. Ou Zonghong, who owned 65% of Ronshine as of the end of 2020. It also considers the company's established governance structures and standards as required by the relevant code for companies listed on the Hong Kong Stock Exchange. Furthermore, Ronshine has three special committees — an audit committee, a remuneration committee and a nomination committee -- one of which is chaired and dominated by independent non-executive directors. Ronshine's B2 senior unsecured rating is one notch lower than its CFR to reflect the risk of structural subordination. This subordination risk reflects the fact that the majority of Ronshine's claims are at its 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. As a result, the likely recovery rate for claims at the holding company will be lower. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Ronshine's rating could be upgraded if the company (1) demonstrates sustained growth in its contracted sales and revenue through economic cycles while improving its profitability; (2) remains prudent in its land acquisitions and financial management; (3) improves its credit metrics, such that its EBIT/interest remains at least 3.0x and revenue/adjusted debt rises to 75%-80% or above on a sustained basis; and (4) maintains adequate liquidity. On the other hand, the company's ratings could come under downward pressure if Ronshine: (1) generates weak contracted sales; (2) fails to improve its profit margin; (3) experiences an impairment of its liquidity position, such that cash/short-term debt falls below 1.0x; and/or (4) materially increases its debt leverage. Credit metrics indicative of a ratings downgrade include EBIT/interest coverage below 2.0x, and/or adjusted revenue/debt below 55%-60% on a sustained basis. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in January 2018. Ronshine China Holdings Limited was incorporated in the Cayman Islands in 2014 and listed on the Hong Kong Stock Exchange in January 2016. As a property developer, it focuses on mid-to high-end residential units in Fujian Province, the Yangtze River Delta, the Pearl River Delta, Central China and the Bohai Sea Region. ZHENRO PROPERTIES: Fitch Rates Proposed 364-day USD Bonds 'B+' -------------------------------------------------------------- Fitch Ratings has assigned Zhenro Properties Group Limited's (B+/Stable) proposed 364-day US-dollar green bonds a 'B+' rating, with a Recovery Rating of 'RR4'. The proposed notes are rated at the same level as Zhenro's senior unsecured rating because they will constitute its direct and senior unsecured obligations. Zhenro intends to use the net proceeds from the issue mainly to refinance existing debt, in accordance with Zhenro's green bond framework. Well-controlled land acquisitions and internally generated cash flow had reduced Zhenro's leverage -defined by net debt/adjusted inventory, including proportional consolidation of joint ventures (JVs) and associates - to 41.6% by end-1H20, from 55% a year earlier. However, its small land bank creates some pressure to replenish land and may pose a challenge in keeping leverage at the current level. Fitch believes Zhenro can sustain leverage at below 50% in the forecast period, 2020-2024. Zhenro's ratings are supported by its attributable contracted sales scale, quality land bank, healthy contracted sales growth and low leverage in 2019 and 1H20. The rating is constrained by an evolving group structure and deteriorated margins. KEY RATING DRIVERS Leverage Decline: Zhenro's proportionally consolidated leverage declined to 41%-42% in 2H19 and 1H20, from 55% in 1H19, supported by strong sales and controlled land acquisitions. However, Fitch believes leverage may edge up if the company extends its land bank life to be in line with that of 'BB-' peers. Acquiring land at market prices could limit its ability to keep land costs low, especially as it buys more land parcels in Tier 2 cities, where there is more intense competition among developers. Quality, but Small, Land Bank: Zhenro's land bank life of 2.0-2.5 years at end-2020 - defined by saleable land bank at end-2020 divided by expected gross floor area (GFA) sold in 2021 - is shorter than that of most 'B+' and 'BB-' peers. Therefore, Fitch believes the company will seek to acquire land to sustain contracted sales growth. That said, Zhenro's land-bank quality is stronger than that of most 'B+' peers, with an average selling price (ASP) of CNY15,949/square metre (sqm) in 2020. The land is diversified across China, with 36% in the Yangtze River Region and 28% in the West Taiwan Straits. More than 70% of its land bank is in higher-tier cities. Larger Sales Scale than Peers: Zhenro's CNY78 billion of attributable contracted sales in 2020 was larger than that of most of 'B+' peers. Fitch expects Zhenro to continue to increase contracted sales in the next two to three years. Evolving Group Structure: Zhenro's implied cash collection - defined as the change in customer deposits plus revenue booked during the year - was only CNY23.8 billion in 2019, or 35% of the year's reported attributable sales. This suggests that a large portion of attributable contracted sales came from its JVs and associates. A high proportion of land acquisitions took place via JVs and associates in 2017 and 2018, but from 2019 most acquisitions were made on balance sheet, leading to an improvement in the percentage to 74% in 2020. The high proportion of off-balance-sheet projects has meant the performance of many projects has not been fully reflected in the company's financials, in Fitch's view. However, Fitch believes Zhenro's financials will gradually reflect the overall performance of projects because recently acquired land is included in the consolidated balance sheet. This transition may lead to short-term volatility in the company's financial metrics, before stabilising. Margin to Edge Up: Fitch expects Zhenro's EBITDA margin to stay at 22% in 2020 and edge up slightly in 2021, after dropping in 2019 and 1H20 yoy following the disposal of low-margin projects and lower capitalised interest. Zhenro acquired land at an average cost of CNY6,651/sqm in 2020, 11% higher than in 2019. Land costs accounted for about 42% of contracted sales ASP. The not yet recognised land sales of CNY120 billion carry a gross profit margin of 22%-23%, compared with 20% recognised in 2019. High Non-Controlling Interests (NCI): Fitch expects NCIs as a percentage of Zhenro's equity to stay at 40%-45% in 2020-2024, which is higher than the average of 'B+' peers. This reflects Zhenro's reliance on cash from contracted sales and capital contributions from non-controlling shareholders, which are mainly developers, as a source of financing to expand scale. This lowers Zhenro's need for debt funding, but creates potential cash leakage and reduces further financial flexibility because homebuilders with lower NCIs can dispose of stakes in projects to reduce leverage. DERIVATION SUMMARY Zhenro's proportionally consolidated leverage in 2019 and 1H20 was comparable with that of 'BB-' peers. Zhenro has a quality land bank, which is shown in its ASP of CNY15,949/sqm, and its attributable contracted sales of CNY78 billion in 2020 were comparable with those of 'BB-' peers, such as Times China Holdings Limited (BB-/Stable). Zhenro's unsold attributable land bank at end-2020 was equivalent to around 2.0-2.5 years of GFA sold, which is shorter than that of most 'BB-' peers, such as Risesun Real Estate Development Co.,Ltd. (BB-/Stable). Zhenro's EBITDA margin is also lower than that of most 'BB-' peers. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Attributable contracted sales of around CNY88 billion a year in 2021-2023 (2020: CNY87 billion); -- 4% rise on average in ASP each year in 2021-2023 (2019: CNY15,949/sqm); -- Annual land premium maintained at around 2.5 years of land bank life; -- 2% rise each year in average land costs in 2021-2023 (2019: CNY6,651/sqm); -- GFA acquired is 1.1x-1.3x of GFA sold in 2021-2023; -- Selling, general and administrative expenses at 3.3%-3.5% of contracted sales in 2021-2023. Key Recovery Rating Assumptions: -- Zhenro to be liquidated in a bankruptcy, as it is an asset trading company; -- 10% administration claims; -- 60% advance rate applied to excess cash (available cash CNY28,369 million - three-month contracted sales CNY16,819 million = excess cash CNY11,550 million); -- 100% advance rate to restricted cash; -- 70% advance rate to adjusted net inventory to reflect Zhenro's 20%-25% EBITDA margin; -- 70% advance rate to accounts receivable; -- 60% advance rate to net property, plant and equipment; -- 40% advance rate to financial instruments; -- 20% advance rate to investment properties. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- A longer record of leverage (net debt/adjusted inventory) being sustained below 45% with land bank life in line with that of high-churn peers; -- EBITDA margin, after adding back capitalised interest in cost of goods sold, above 20% for a sustained period. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Leverage (net debt/adjusted inventory) above 55% for a sustained period; -- EBITDA margin, after adding back capitalised interest in cost of goods sold, below 15% for a sustained period. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Sufficient Liquidity: Zhenro had unrestricted cash of CNY35.5 billion at end-2020, pledged deposits of CNY607 million, restricted cash of CNY6.9 billion, undrawn bank credit facilities and an unused onshore and offshore bond issuance quota for refinancing, which were enough to cover short-term borrowings of CNY19.5 billion. Funding costs edged down, as Zhenro continues to replace its trust loans with lower-cost financing. The proportion of trust loans declined to 9% in 1H20, from 36% in 2018. 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 to the way in which they are being managed by the entity. ========= I N D I A ========= ALAYNA INDUSTRIES: CRISIL Migrates D Ratings to Not Cooperating --------------------------------------------------------------- CRISIL Ratings has migrated the ratings on bank facilities of Alayna Industries (AI) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.4 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Funded Interest 0.41 CRISIL D (ISSUER NOT Term Loan COOPERATING; Rating Migrated) Proposed Long Term 1.86 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING; Rating Migrated) Term Loan 2.33 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with AI for obtaining information through letters and emails dated March 9, 2021 and March 15, 2021 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 AI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AI is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of AI to 'CRISIL D Issuer not cooperating'. AI is owned & managed by Mr Gaurav Pachouri and Ms Nishita Pachouri.AI operate a rice mill . Its manufacturing facility is located in Mandideep, Bhopal, Madhya Pradesh. APL MACHINERY: CRISIL Migrates D Debt Rating to Not Cooperating --------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of APL Machinery Private Limited (APL) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with APL for obtaining information through letters and emails dated March 9, 2021 and March 15, 2021 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 APL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on APL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of APL to 'CRISIL D Issuer not cooperating'. Incorporated in 1995, APL is promoted by Mr Chander Prakash Paul and his wife Mrs Swati Paul. The company manufactures screen printing machines and ultraviolet curing machinery at its facility is in Faridabad, Haryana. B.N. INDUSTRIES: Ind-Ra Affirms B+ Issuer Rating, Outlook Stable ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed B.N. Industries (BNI) Long-Term Issuer Rating at 'IND B+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR65 mil. Fund-based working capital limit affirmed with IND B+/Stable/IND A4 rating; and -- INR30 mil. Non-fund-based working capital limit affirmed with IND A4 rating. KEY RATING DRIVERS The affirmation reflects BNI's continued small scale of operations with a 1.40% yoy fall in its revenue to INR274.21 million in FY20, mainly due to COVID-19-led disruptions. The firm achieved a revenue of INR251.5 million in 11MFY21. The ratings continue to reflect the BNI's modest EBITDA margin, due to the intense competition in the industry. The margins improved to 9.34% in FY20 (FY19: 8.85%), due to a decline in the cost of raw materials. The return on capital employed was 13% in FY20 (FY19: 13%). The ratings also factor in BNI's continued modest credit metrics with the gross interest coverage (operating EBITDA/gross interest expense) of 1.59x in FY20 (FY19: 1.51x) and the net financial leverage (adjusted net debt/operating EBITDA) of 4.76x (5.17x). The improvement in the credit metrics in FY20 was due to an increase in the absolute EBITDA to INR25.61 million (FY19: INR24.60 million), along with a decline in the total debt on account of the reduced working capital utilization during the year. Liquidity Indicator – Stretched: BNI's average maximum utilization of fund-based limits was 95.6% for the 12 months ended February 2021. The company's free cash flow decline to INR8.85 million in FY20 (FY19: INR9.61 million) on account of the increased capital expenditure during the period. Furthermore, the net cash cycle elongated to 158 days in FY20 (FY19: 136 days) on account of a decline in the average payable days. The entity's cash flow from operations, however, increased to INR19.15 million in FY20 (FY19: INR14.48 million) on account of positive changes in the working capital management. Additionally, the firm had unencumbered cash of INR0.95 million in FY20 (FY19: INR0.81 million). The entity does not have any capital market exposure and relies on banks and financial institutions to meet its funding requirements. BNI availed the Reserve Bank of India-prescribed moratorium over March-August 2020. The ratings continue to be constrained by the partnership structure of the firm. The rating, however, is supported by the promoters' experience of around three decades in the business of manufacturing non-ferrous metals. Moreover, the ratings are also supported by BNI's diversified customer base. The top five customers contributed around 37.32% to the revenue in FY20 (FY19: 51.57%). RATING SENSITIVITIES Positive: A substantial increase in the scale of operations, along with an improvement in the overall credit metrics and the liquidity profile, all on a sustained basis, will lead to a positive rating action. Negative: A decline in the scale of operations, leading to a deterioration in the overall credit metrics with the net leverage rising above 5.7x and/or a further pressure on the liquidity position, all on a sustained basis, will be negative for the ratings. COMPANY PROFILE Established in 1989 as partnership firm B.N. Industries manufactures non-ferrous metals such as zinc oxide, zinc sulphate, copper ingots, brass metallics/ingots and zinc powder. The firm is promoted by Ashwani Singhal and Akhilesh Singhal. The final product of the firm is mainly used in steel plant, ceramic & rubber industry. The registered office is situated in Mumbai whereas the manufacturing unit is located in Daman. BONTON SOFTWARES: Ind-Ra Hikes Long-Term Issuer Rating to 'BB' -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Bonton Softwares Private Limited's (BSPL) Long-Term Issuer Rating to 'IND BB' from 'IND BB-'. The Outlook is Stable. The instrument-wise rating action is as follows: -- INR90 mil. Fund-based working capital limits Long-term rating upgraded/Short-term rating affirmed with IND BB/Stable/IND A4+ rating; -- INR147 mil. Non-fund-based working capital limits affirmed with IND A4+ rating; and -- INR24.47 mil. (reduced from INR30 mil.) Term loan due on FY23 upgraded with IND BB/Stable rating. KEY RATING DRIVERS The upgrade reflects an improvement in BSPL's revenue in FY20 as FY20 was the first full year of operations; it began operations in January 2019. The company reported higher revenue of INR512.24 million in FY20 (FY19: INR102.91 million), backed by an increase in the number of orders received, coupled with timely execution and billing. BSPL booked revenue of INR573.52 million during 10MFY21. Ind-Ra expects the revenue to have been higher on a year-on-year basis in FY21, owing to the signing of new contracts during the year. Liquidity Indicator – Stretched: BSPL's average maximum utilization of the fund-based facilities was around 68% for 12 months ended January 2021. The cash flow from operations declined to INR96.61 million in FY20 (FY19: INR122.24 million), mainly on account of unfavorable changes in working capital. However, the free cash flow turned positive to INR94.07 million in FY20 (FY19: negative INR85.47 million) on account of absence of any significant capex in FY20. The company had cash and cash equivalents of INR75.50 million at FYE20 (FYE19: INR12.87 million). BSPL's cash conversion cycle stood at 41 days in FY20 (FY19: 59 days) owing to an improvement in the receivable period to 79 days (531 days) and inventory holding period to 18 days (87 days). Ind-Ra expects BSPL's liquidity to be sufficient to meet the repayment obligations over the medium term. BSPL did not avail the Reserve Bank of India-prescribed moratorium under the COVID-19 relief package scheme. The ratings are constrained by BSPL's high customer concentration risk, as its only clients are the Transport Commissioner of Tamil Nadu and Tamil Nadu Civil Supplies Corporation. Any breach of terms and conditions of the tender agreement by the company could negatively affect its revenue visibility. The ratings reflect BSPL's healthy EBITDA margins. The company reported a margin of 50.80% in FY20 (FY19: 51.84%). The return on capital employed was 101.9% in FY20 (FY19: 6.1%). Ind-Ra expects the EBITDA margin to have declined in FY21, owing to a likely increase in costs, resulting from higher expenses related to products required to provide the software installation and maintenance services. The ratings are also supported by BSPL's comfortable credit metrics. The net leverage (net debt/operating EBITDA) was 0.07x in FY20 (FY19: 2.10x) and the interest coverage (operating EBITDA/gross interest expense) was 1.99x. BSPL reported an operating EBITDA of INR260.22 million in FY20 (FY19: INR53.35 million) and total debt of INR94.05 million (INR124.65 million). Ind-Ra expects the credit metrics to have remained comfortable in FY21 amid the absence of any major debt-led capex. The ratings also benefit from BSPL's promoters' experience of more than five years in the information technology service industry, leading to established relationships with customers and suppliers. RATING SENSITIVITIES Negative: A significant decline in the scale of operations, leading to a further deterioration in the credit metrics, with the interest coverage declining below 1.8x on a sustained basis will be negative for the ratings. Positive: A substantial growth in the scale of operations, leading to an improvement in the credit metrics on a sustained basis will be positive for the ratings. COMPANY PROFILE BSPL was incorporated under the Companies Act, 1956, on March 27, 2007. The company's registered office is located in Chennai, Tamil Nadu. It is engaged in the business of software installation and maintenance services. COTTON BLOSSOM: Ind-Ra Affirms 'D' Long-Term Issuer Rating ---------------------------------------------------------- India Ratings and Research (Ind-Ra) has affirmed Cotton Blossom (India) Private Limited's (CBIPL) Long-Term Issuer Rating at 'IND D' and has simultaneously migrated the rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR77.9 mil. Long term loans (Long-term) due on June 2024 affirmed and migrated to Non-Cooperating Category with IND D (ISSUER NOT COOPERATING) rating; -- NR900 mil. Fund-based facilities (Long-term/Short-term) affirmed and migrated to Non-Cooperating Category with IND D (ISSUER NOT COOPERATING) rating; and -- INR100 mil. Non-fund-based facilities (Short-term) affirmed and migrated to Non-Cooperating Category with IND D (ISSUER NOT COOPERATING) rating. Note: Issuer did not cooperate; based on the best available information KEY RATING DRIVERS The rating action reflects CBIPL's continued delays in principal servicing on its term debt during the three months ended March 29, 2021, due to tight liquidity. COMPANY PROFILE CBIPL was established as a partnership firm in 1999 and was reconstituted as a private limited company in 2004. The company manufactures garments and exports to countries such as Germany, the US, the UK and Dubai. CBIPL as backward integrated spinning, knitting, dyeing, printing and embroidery divisions. GUPTA STEEL: CRISIL Migrates B+ Rating from Not Cooperating ----------------------------------------------------------- Due to inadequate information, CRISIL Ratings, in line with Securities and Exchange Board of India guidelines, had migrated its ratings on the bank facilities of Gupta Steel and Strips Private Limited (GSSPL) to 'CRISIL B+/Stable issuer not cooperating'. However, the management has subsequently started sharing the requisite information, for carrying out a comprehensive review of the ratings. Consequently, CRISIL Ratings is migrating the rating to 'CRISIL B+/Stable' from 'CRISIL B+/Stable issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit/ 10 CRISIL B+/Stable (Migrated Overdraft from 'CRISIL B+/Stable facility ISSUER NOT COOPERATING') The rating reflects the company's weak financial risk profile, susceptibility of operating margin to volatility in raw material prices, and modest scale of operations. These weaknesses are partially offset by the extensive experience of its promoter. Key Rating Drivers & Detailed Description Weaknesses: * Weak financial risk profile: High gearing and low accrual have kept debt protection metrics subdued: interest coverage and net cash accrual to total debt ratios are estimated to be at 1.5 – 1.8 times and 0.05 time, respectively, for fiscal 2021. Metrics are expected to remain modest over the medium term because of high debt level against the low net worth, estimated at INR2 – 2.2 crore as on March 2021. * Susceptibility of operating margin to volatility in raw material prices: Cost of production and profit margin are heavily dependent on raw material (sponge iron and mild steel scrap) prices. On account of variation in input rates, operating margin has remained volatile. Profitability is also linked to the fortunes of the inherently cyclical steel industry, which has strong correlation with overall growth in gross domestic product. Operating performance will remain exposed to volatility in raw material prices and offtake by key end users. * Modest scale of operations: Business risk profile is constrained by modest scale in the intensely competitive iron and steel industry, with revenue estimated for fiscal 2021 at INR45 – 50 crore. This will continue to limit operating flexibility. Strengths: * Extensive experience of promoter: Industry presence of more than a decade has enabled the promoter to understand market dynamics and establish healthy relationship with suppliers and customers. Liquidity: Stretched Liquidity remains stretched, marked by high bank limit utilization of 80 - 90% over the 6 months ended February 2021. Also, expected net cash accrual of INR0.5 – 1 crore over the medium term will be sufficient to meet debt obligation of INR0.1 – 0.9 crore. Furthermore, need-based funding support from promoter is expected to continue. Current ratio was 1.1 times as on March 31, 2020. Outlook: Stable CRISIL believes GSSPL will continue to benefit from its longstanding relationship with principals and experienced management. Rating Sensitivity factors Upward factors: * Sustained increase in revenue and operating margin, leading to increase in cash accrual of above INR2 crore * Improvement of financial risk profile with improvement of gearing to below 2 times Downward factors: * Decline in operating margin or revenue leading to cash accruals of below INR0.4 crore * A substantial increase in working capital requirement, or large, debt-funded capital expenditure, weakening the financial risk profile and liquidity Incorporated in 2011 and promoted and managed by Mr Ashish Gupta. GSSPL trades iron and steel products such as hot-rolled (HR) and cold-rolled coils, HR sheets, and strips. GURUKRUPA COTTON: CRISIL Assigns B+ Rating to INR9.5cr Cash Loan ---------------------------------------------------------------- CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the long-term bank facility of Gurukrupa Cotton and Oil Industries (GCOI). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 9.5 CRISIL B+/Stable (Assigned) The rating reflects the working capital-intensive operations of the firm and its weak financial risk profile. These weaknesses are partially offset by the extensive experience of the promoters in the textile industry. Analytical Approach Unsecured loans from the promoters have been treated as 75% equity and 25% debt as they are subordinated to bank debt and are expected to remain in the business over the medium term. Key Rating Drivers & Detailed Description Strengths: * Working capital-intensive operations: Gross current assets (GCAs) were at 107-190 days over the three fiscals ended March 31, 2020, because of large inventory in the business. GCAs are estimated at 120 days as on March 31, 2021. * Weak financial risk profile: The financial risk profile is constrained by high gearing of and total outside liabilities to adjusted networth ratio of 1.54 times and 1.70 times, respectively, as on March 31, 2020. The leverage will remain high over the medium term. Debt protection measures have been weak due to low accrual of INR9-14 lakh from operations (estimated at INR10 lakh in fiscal 2021). The interest coverage and net cash accrual to total debt ratio were at 1.14 times and 0.01 time, respectively, for fiscal 2020, and are expected at similar levels over the medium term. Weakness: * Extensive industry experience of the promoters: The promoters have experience of over 12 years in the textile (cotton ginning) industry and have developed an understanding of the market dynamics and built relationships with suppliers and customers. Liquidity: Stretched Bank limit utilisation was moderately high at 85% on average for the 12 months through January 2021. Cash accrual is expected over INR10 lakh against no term debt obligation over the medium term. Current ratio was moderate at 1.59 times as on March 31, 2020. Outlook: Stable CRISIL Ratings believes GCOI will continue to benefit from the extensive experience of its promoters and established relationships with clients. Rating Sensitivity factors Upward factors * Sustained improvement in profitability leading to significant increase in cash accrual * Improvement in the interest coverage over 1.5 times Downward factors * Decline in operating profitability below 2% * Substantial increase in working capital requirement weakening liquidity Established in 2008, GCOI gins and presses raw cotton and crushes cotton seeds at its facility in Rajkot, Gujarat. HARIMAN SEEDS: CRISIL Migrates B+ Debt Ratings to Not Cooperating ----------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Hariman Seeds (HS) to 'CRISIL B+/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) Term Loan 5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with HS for obtaining information through letters and emails dated March 9, 2021 and March 15, 2021 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 HS, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on HS is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of HS to 'CRISIL B+/Stable Issuer not cooperating'. HS is a partnership firm established in 2017 and owned and managed by Mrs Manju Singhal and Mr Amit Kumar Agarwal. The firm recently set up a unit for rice processing from paddy, producing rice bran and husk from hulling of paddy, and other allied works. The unit in U S Nagar, Uttarakhand, has an installed capacity of 6 tonne per hour. Firm started operations in June 2019. INDORE TABLE: Ind-Ra Keeps 'D' LT Issuer Rating in Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has maintained Indore Table Tennis Trust's bank facilities in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will continue to appear as at 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR72.2 mil. Term loans (Long-term) due on April 2019 maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR0.54 mil. Working capital facility (Long-term) maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on April 6, 2020. Ind-Ra is unable to provide an update as the agency does not have adequate information to review the ratings. COMPANY PROFILE Formed in December 1994, Indore Table Tennis Trust operates Abhay Prashal Sports Club, which provides table tennis and other indoor game facilities. The club also has a swimming pool, banquet halls and an upcoming auditorium. The trust has begun selling membership and is working on expanding its facilities. KELTECH INFRASTRUCTURE: CRISIL Keeps D Rating in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Keltech Infrastructure Limited (KIL) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 10 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with KIL for obtaining information through letters and emails dated August 22, 2020 and February 16, 2021 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 KIL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on KIL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of KIL continues to be 'CRISIL D Issuer Not Cooperating'. Set up by Mr. Narendra Kumar in 2010, KIL is part of the Kumar group. The company undertakes real estate construction and development, mainly in and around Ghaziabad (Uttar Pradesh). It has two on-going projects in Ghaziabad: Golf Vista in Crossing Republic Township on National Highway 24, and Kumar Imperial Greens in Greater Noida West Township. A third project, Keltech Rize, is also on the drawing board. KUMAR SPINTEX: Ind-Ra Affirms BB- LT Issuer Rating, Outlook Stable ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed Kumar Spintex Private Limited's (KSPL) Long-Term Issuer Rating at 'IND BB-'. The Outlook is Stable. The instrument-wise rating actions are: -- INR140 mil. Fund-based working capital limit affirmed with IND BB-/Stable/IND A4+ rating; -- INR28 mil. Non-fund-based working capital limit affirmed with IND A4+ rating; and -- INR153.78 mil. (reduced from INR188 mil.) Term loan due on June 2024 affirmed with IND BB-/Stable rating. KEY RATING DRIVERS The affirmation reflects KSPL's continued small scale of operations, despite an increase in the revenue to INR1,054.13 million in FY20 (FY19: INR941.68 million). During 10MFY21, the company achieved revenue of INR666.29 million. The revenue is likely to have declined in FY21 due to COVID-19 led disruptions in production in 1QFY21. However, the agency expects the export and domestic demand to improve, leading to a strong improvement in sales volumes over FY22. The ratings continue to factor in the company's modest EBITDA margins, which are likely to have improved to 6%-8% in FY21, on the back of cost-reduction measures undertaken by the company, along with a reduction in raw material prices and a recovery in yarn prices during 2HFY21. KSPL achieved EBITDA of INR70.38 million and margins of 11% in 10MFY21. The margins remained volatile at 4%-8% during FY17-FY20 due to the highly fragmented nature of industry. Despite the increase in the revenue in FY20, the EBITDA margins declined to 5.8% (FY19: 8.4%), due to an increase in raw material consumption, employee costs and other expenses. KSPL's return on capital employed was 8% in FY20 (FY19: 13%). The ratings also remain constrained by the company's weak credit metrics as reflected by deterioration in the net leverage excluding unsecured loans (total adjusted net debt/operating EBITDAR) to 4.11x in FY20 (FY19: 3.93x) and the gross interest coverage (operating EBITDA/gross interest expense) to 1.22x (2.23x). The deterioration in the credit metrics was on account of a decrease in the absolute EBITDA to INR61.61 million in FY20 (FY19: INR79.36 million) and an increase in the interest expenses to INR50.41 million (INR35.57 million). Ind-Ra expects the credit metrics to have deteriorated further in FY21, on the back of an increase in total debt, as a result of availing of a COVID-19 related loan. Liquidity Indicator - Stretched: KSPL's average maximum utilization of the working capital limit was high at 95% over the 12 months ended February 2021. The cash and cash equivalents stood at INR6.13 million at FYE20 (FYE19: INR8.09 million), against annual scheduled repayments of INR50.3 million and INR48.1 million in FY22 and FY23, respectively. Furthermore, the cash flow from operations declined to INR38.13 million in FY20 (FY19: INR92.96 million), mainly due to unfavorable changes in working capital. However, the free cash flow, although remained low, improved to INR10.84million in FY20 (FY19: INR0.07 million), due to low capex. The agency expects the cash flow from operations and free cash flow to have remained at similar levels in FY21. KSPL had availed the Reserve Bank of India-prescribed moratorium from March to August 2020, but did not apply for any loan restructuring as per the Reserve Bank of India resolution framework. However, the ratings are supported by the company's promoters' two decades of experience in the textile industry and the group's presence in the weaving, dyeing and manufacturing of yarn in the textile value chain and support towards the operations of the company. RATING SENSITIVITIES Positive: A substantial improvement in the revenue, operating EBITDA, and liquidity position, leading to the net leverage reducing below 3.5x on a sustained basis, could be positive for the ratings. Negative: Any decline in the revenue and operating EBITDA, any unplanned debt-led capex leading to stress in the liquidity and a sustained deterioration in the credit metrics, could be negative for the ratings. COMPANY PROFILE Incorporated in June 2002, Ahmedabad-based KSPL manufactures cotton yarn of various Count of 30s, 34s, 40s, and cotton with capacity of 36,000 spindles at its facility in Ahmedabad, Gujarat. The company is promoted by Balvantrai Agarwal and his family. KSPL is a part of Kumar Group, which has direct presence in weaving, dyeing and manufacturing of yarn in the textile value chain. LAKSHMIKANTHA SPINNERS: CRISIL Keeps D Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Sri Lakshmikantha Spinners Limited (SLSL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 47.85 CRISIL D (Issuer Not Cooperating) Long Term Loan 65.15 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SLSL for obtaining information through letters and emails dated August 31, 2020 and February 16, 2021 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 SLSL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SLSL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SLSL continues to be 'CRISIL D Issuer Not Cooperating'. Established in 2004 and based in Hyderabad (Telangana), SLSL manufactures cotton yarn. Promoted by Mr. Chinnarappagari Swamy Reddy and his family, the day-to-day operations are managed by Mr. Reddy's son, Mr. Chinnarappagari Rameswara Reddy. LAVISH EXIM: Ind-Ra Keeps 'D' Bank Loan Rating in Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Lavish Exim Private Limited's (LEPL) bank loan ratings in the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using the rating. The rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The detailed rating action is: -- INR51.5 mil. Term loans (Long-term) due on March 2019 maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The rating was last reviewed on April 18, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the rating. COMPANY PROFILE Incorporated on December 23, 2005, Lavish Exim operates an international school under the name Greater Noida World School, in Greater Noida, Uttar Pradesh. LOGON INDIA: CRISIL Migrates D Debt Ratings to Not Cooperating -------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Logon India Infrastructure Private Limited to 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 3.11 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Secured Overdraft 2.00 CRISIL D (ISSUER NOT Facility COOPERATING; Rating Migrated) Working Capital 14.03 CRISIL D (ISSUER NOT Term Loan COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with Logon India Infrastructure Private Limited (Logon) for obtaining information through letters and emails dated January 30, 2021, March 9, 2021 and March 15, 2021 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 Logon, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Logon is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of Logon to 'CRISIL D/CRISIL D Issuer not cooperating'. Established in 2011, LIIPL undertakes civil construction of warehouses, residential projects, and roads for various infrastructure companies on a sub-contract basis. The company is promoted by Mr. Daljit Singh Chadda and Mr. P Swaminathan. M/S GEORGE: Ind-Ra Moves BB- LT Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated M/s. George Maijo Industries 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 these ratings. The rating will now appear as 'IND BB- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR105 mil. Fund-based limits migrated to non-cooperating category with IND BB- (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; -- INR185 mil. Non-fund-based limits migrated to non-cooperating category with IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR453.2 mil. Term loan due on March 2034 migrated to non- cooperating category with IND BB- (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 6, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Maijo was incorporated in 1962 by late T.M. Joseph. Maijo is the sole distributor of the marine engines, water vehicles and boats manufactured by Yamaha Motor Co. in India. The company has three showrooms in Kerala and is also engaged in the trading of agri, marine and power transmission products. MAGIC AUTO: Ind-Ra Affirms & Withdraws BB+ Long-Term Issuer Rating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed Magic Auto Private Limited's (MAPL) Long-Term Issuer Rating at 'IND BB+ (ISSUER NOT COOPERATING)' and has simultaneously withdrawn it. The instrument-wise rating action is: -- INR600 mil. Fund-based working capital limit * affirmed and withdrawn. *Affirmed at 'IND BB+ (ISSUER NOT COOPERATING)/ IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-objection certificate from the lender. This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. KEY RATING DRIVERS The affirmation reflects the continued medium scale of operations, as indicated by revenue of INR6,617 million in FY20 (FY19: INR7,497 million). The revenue declined by 12% yoy due to the impact of the overall economic slowdown and COVID-19-led disruptions towards the year-end. Consequently, the absolute EBITDA also fell by 25% yoy to INR78 million in FY20. MAPL booked revenue of INR4,045 million and absolute EBITDA of INR66 million during 9MFY21. The ratings reflect the modest EBITDA margins due to the trading nature of the business. The margin deteriorated to 1.18% in FY20 (1.45%), as the fall in revenue led to lower absorption of fixed costs. The ROCE stood at 3% in FY20 (FY19: 6%). The EBITDA margin however increased to 1.6% in 9MFY21 due to cost rationalization during the pandemic. The ratings also factor in the weak credit metrics due to the modest EBITDA margins. Despite a decline in interest costs to INR50.8 million in FY20 (INR53.11 million), the interest coverage (EBITDA/interest expense) deteriorated to 1.5x in FY20 (FY19:2x) due to the significant decline in EBITDA. However, the net leverage (net adjusted debt/EBITDA) improved to 6x (8x) due to the decline in debt to INR483 million (INR931 million), resulted from lower utilization of the working capital limits. In 9MFY21, the interest coverage improved to 2.6x and net leverage to 4x due to further reduction in the debt and interest costs. Liquidity Indicator-Adequate: MAPL had outstanding short-term borrowings of INR371 million of as of December 2020. The average utilization of the fund-based limits was around 32% as of December 31, 2020, indicating a moderate liquidity buffer. The net-working capital cycle remained moderate but elongated to 52 days in FY20 (FY19: 34 days) due to an increase in the debtor days to 23 days (eight days) and the inventory days to 32 days (30 days). The debtor days increased significantly due to the delayed realizations of receivables. MAPL had cash and cash equivalents of INR106 million of at end-9MFY21 (end-FY20: INR14.42 million). Further, the company does not have any long-term debt and had not availed the Reserve Bank of India-prescribed moratorium. The ratings have been maintained in the non-cooperating category as MRIPL did not participate in the rating exercise despite continuous requests and follow-ups by the agency and has not provided information such as audited financials, interim financials, utilization reports, and key details required for the surveillance exercise. COMPANY PROFILE Incorporated in 1989, MAPL is an authorized dealer of Maruti Suzuki India Limited in Delhi. MANJUSHA HEALTHCARE: CRISIL Moves D Rating to Not Cooperating ------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Manjusha Healthcare Private Limited (MHPL) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 15 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with MHPL for obtaining information through letters and emails dated December 23, 2020, March 9, 2021 and March 15, 2021 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 MHPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MHPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of MHPL to 'CRISIL D Issuer not cooperating'. Incorporated in 2012 and promoted by Dr Rahul Yakhmi and Dr Roma Sachdeva, Delhi-based MHPL operates a multi-speciality hospital in Ghaziabad under the Healing Tree Hospital brand. The hospital has a 100-bed capacity (50% utilization) and offers services in the orthopedics, gynecology and obstetrics, physiotherapy, radiology segments. Operations began in August 2018. MEDICHECK INFO: CRISIL Withdraws B- Rating on INR7cr Loans ---------------------------------------------------------- CRISIL Ratings has withdrawn its rating on the bank facilities of Medicheck Info Private Limited (MIPL) on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL's policy on withdrawal of its rating on bank loan facilities. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Funded Interest 0.9 CRISIL B-/Stable (ISSUER NOT Term Loan COOPERATING; Migrated from 'CRISIL B-/Stable'; Rating Withdrawn) Proposed Fund- 0.1 CRISIL B-/Stable (ISSUER NOT Based Bank Limits COOPERATING; Migrated from 'CRISIL B-/Stable'; Rating Withdrawn) Working Capital 6 CRISIL B-/Stable (ISSUER NOT Term Loan COOPERATING; Migrated from 'CRISIL B-/Stable'; Rating Withdrawn) CRISIL Ratings has been consistently following up with MIPL for obtaining information through letters and emails dated March 24, 2021 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 MIPL. This restricts CRISIL Ratings' ability to take a forward looking view on the credit quality of the entity. CRISIL Ratings believes that rating action on MIPL is consistent with 'Assessing Information Adequacy Risk'. CRISIL Ratings has migrated the ratings on the bank facilities of MIPL to 'CRISIL B-/Stable Issuer not cooperating'. CRISIL Ratings has withdrawn its rating on the bank facilities of MIPL on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL's policy on withdrawal of its rating on bank loan facilities. MIPL was incorporated in 2003 in Mumbai, promoted by Mr Hitesh Asrani and Ms Nisha Asrani. The company trades in pharmaceutical bulk drugs. MELSTAR INFORMATION: CRISIL Keeps D Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Melstar Information Technologies Limited (MITL) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL D (Issuer Not Cooperating) Overdraft Facility 4 CRISIL D (Issuer Not Cooperating) Proposed Long Term 6 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with MITL for obtaining information through letters and emails dated October 31, 2020 and February 27, 2021 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 MITL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MITL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MITL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. MITL, part of the Yash Birla group of companies, primarily provides staffing services to large information technology (IT) companies and IT divisions of large corporations. MITL also provides application development and implementation services, albeit on a modest scale. MITL is listed on the Bombay Stock Exchange and the National Stock Exchange. MY CAR: CRISIL Keeps D Debt Ratings in Not Cooperating Category --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of MY Car Private Limited (MCPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 13 CRISIL D (Issuer Not Cooperating) Inventory Funding 11.5 CRISIL D (Issuer Not Facility Cooperating) Term Loan 2.3 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with MCPL for obtaining information through letters and emails dated August 22, 2020 and February 16, 2021 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 MCPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MCPL continues to be 'CRISIL D Issuer Not Cooperating'. MCPL, incorporated in 2000, has a dealership of Maruti Suzuki India Ltd (MSIL). The company currently runs three showrooms, one each at Kanpur, Bandha and Farukabad, and five workshops, three in Kanpur and one each in Bandha and Farukabad. Mr Vijay Garg, Ms Kavita Garg and Mr Kunal Garg are the promoters. NIRMAN INFRA: CRISIL Withdraws B+ Rating on INR5cr Cash Loan ------------------------------------------------------------ CRISIL Ratings has withdrawn its rating on the bank facilities of Nirman Infra Steel Private Limited (NISPL) on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL's policy on withdrawal of its rating on bank loan facilities. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B+/Stable (ISSUER NOT COOPERATING; Migrated from 'CRISIL B+/Stable'; Rating Withdrawn) CRISIL Ratings has been consistently following up with NISPL for obtaining information through letters and emails dated March 23, 2021 and March 26, 2021 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 NISPL. This restricts CRISIL Ratings' ability to take a forward-looking view on the credit quality of the entity. CRISIL Ratings believes that rating action on NISPL is consistent with 'Assessing Information Adequacy Risk'. CRISIL Ratings has migrated the ratings on the bank facilities of NISPL to 'CRISIL B+/Stable Issuer not cooperating'. CRISIL Ratings has withdrawn its rating on the bank facilities of NISPL on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL's policy on withdrawal of its rating on bank loan facilities. NISPL produces thermo-mechanically treated bars and sells it under the Bhaskar brand. It has capacity of 300 tonne per day at its facility in Jaipur. It commenced operations in May 2013. NIRVANA HAMMOCKS: CRISIL Migrates B Rating to Not Cooperating ------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Nirvana Hammocks Private Limited (NHPL) to 'CRISIL B/Stable Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Working 10 CRISIL B/Stable (ISSUER NOT Capital Facility COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with NHPL for obtaining information through letters and emails dated January 30, 2021, March 9, 2021 and March 15, 2021 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 NHPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on NHPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of NHPL to 'CRISIL B/Stable Issuer not cooperating'. NHPL set up in 2011 is engaged into manufacturing and exporting of hammocks. The operations of the company is being managed by the promoter Mr Karan Bhatt who has an experience of over 4 decades in the industry. PAGODA STEELS: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Pagoda Steels Private Limited (PSPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 12 CRISIL D (Issuer Not Cooperating) Proposed Long Term 0.59 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 2.41 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with PSPL for obtaining information through letters and emails dated August 22, 2020 and February 16, 2021 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 PSPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on PSPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of PSPL continues to be 'CRISIL D Issuer Not Cooperating'. PSPL was established in 2005; in 2012, the Bhavnagar (Gujarat)-based Patel family took over the company's operations. PSPL is currently being managed by Mr. Jignesh R Patel. The company manufactures TMT bars under its brand, Pagoda, at its facility in Bhavnagar. PANCHDEO FLOUR: CRISIL Assigns B+ Rating to INR6.0cr New Loan ------------------------------------------------------------- CRISIL Ratings has assigned its CRISIL B+/Stable ratings to the bank facilities of Panchdeo Flour Mills LLP (PFM). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Cash Credit Limit 3.5 CRISIL B+/Stable (Assigned) Proposed Term Loan 5.0 CRISIL B+/Stable (Assigned) Proposed Working Capital Facility 6.0 CRISIL B+/Stable (Assigned) The rating reflects PFM's exposure to risks related to ongoing project and its susceptibility to climatic conditions and volatility in raw material prices. These weaknesses are partially offset by extensive industry experience of the promoters and adoption of latest machinery in steady industry. Key Rating Drivers & Detailed Description Weakness * Exposure to risks related to ongoing project: PFM is scheduled to commence its project in May 2021 at an estimated total cost of approx. INR7 crore (expected to be funded by debt of INR5 crore along with working capital lines). Demand risk is also expected to be moderate as the industry is highly fragmented marked by low entry barriers with small capital and technological requirements. Though the project could benefit from its geographical location, it remains exposed to intense competition from other players in the segment. Timely completion and successful stabilization of its operations at the new unit will remain a key rating sensitivity factor. * Susceptibility to climatic conditions and volatility in raw material prices: The crop yield of agricultural commodities is dependent on adequate and favorable climatic condition. Thus, PFM is exposed to the risk of limited availability of its key raw material during an unfavorable climatic condition. Also production may be impacted by-pests or crop infection leading to higher unpredictability in production and pricing of agri commodities and derived products. Strengths * Extensive industry experience of the partners: The partners have an extensive experience in food grains trading. This has given them an understanding of the dynamics of the market, and enabled them to establish relationships with suppliers and customers. However, PFM would be the first manufacturing plant for the promoters. * Adoption of latest machinery in steady industry: PFM's unit is expected to be equipped with relatively latest equipment & technology. Therefore, the adoption of latest machinery in steady flour milling industry would support its business profile. Liquidity: Poor The firm is yet to achieve financial closure with disbursal of the loan to be sanctioned by next month (Apr 2021). Fiscal 2022 would be the first year of operations, where the net cash accrual are expected to be sufficient to meet the yearly term debt obligation of approx. INR1 crore over the medium term. Support from promoters is also anticipated in case of any cash flow mismatches. Outlook Stable CRISIL Ratings believes that PFM will benefit over the medium term from its promoters extensive industry experience. Rating Sensitivity factors Upward factors * Stabilization of operations at its proposed plant in time * Significant growth in revenue by 25% and profitability by 200 bps. Downward factors * Any considerable delay in the commencement of its operations, * Generating significantly low than expected cash accruals during its initial phase of operations of less than Rs.1.5 crore * Any substantial increase in its working capital requirements thus weakening its liquidity & financial profile. Established in 2019, PFM is currently setting up mills for milling wheat, gram, other grains and cereals, dal, besan, maida, atta, sooji and other allied products with an installed capacity of 4500 MT per month. The plant is expected to be commissioned in May 2021 in fiscal 2022. PFM is owned & managed by Mrs. Neetu Singhania and her relatives. PARACOAT PRODUCTS: Ind-Ra Lowers Long-Term Issuer Rating to 'BB' ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Paracoat Products Limited's (PPL) 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: -- INR130 mil. Fund-based limits downgraded with IND BB (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating; and -- INR145 mil. Non-fund-based limits 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 SEBI Circular SEBI/HO/MIRSD/CRADT/ CIR/P/2020/2 dated January 3, 2020. As per the circular any issuer with an investment grade rating remains non cooperative with the rating agency for more than six months should be downgraded to sub-investment grade rating. The current outstanding rating of 'IND BB (ISSUER NOT COOPERATING)' may not reflect its credit strength as PPL has been non-cooperative with the agency, therefore, investors and other users are advised to take appropriate caution while using these ratings. COMPANY PROFILE Incorporated in 1974, Kolkata-based PPL manufactures noise, vibration and harshness components for automobiles. It has a joint venture in Thailand - Paracoat Asia Company Ltd - which supplies components to General Motors Company. PRABIR FOODSTUFF: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Prabir Foodstuff Factory (PFF) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 13 CRISIL D (Issuer Not Cooperating) Warehouse Financing 15 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with PFF for obtaining information through letters and emails dated August 22, 2020 and February 16, 2021 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 PFF, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on PFF is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of PFF continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. PFF, set up in 2005 by Mr. Kuljit Singh, mills and sorts basmati and non-basmati rice. It sells its rice under the brands Victoria, 777, KR, and Flying Horse. The firm has a rice milling and sorting facility in Amritsar (Punjab), with a capacity of 12 tonnes per hour. RAJASTHAN METALS: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating ------------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Rajasthan Metals' 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 BB-(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR60 mil. Fund-based limits migrated to non-cooperating category with IND BB- (ISSUER NOT COOPERATING)'/IND A4+ (ISSUER NOT COOPERATING)' rating; and -- INR140 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 February 27, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Founded in 1974, Rajasthan Metals is a proprietorship concern based at Chawri Bazar, Delhi. RAJSHRI IRON: Ind-Ra Moves B+ LT Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Rajshri Iron Industries Private Limited's (RIIPL) Long-Term Issuer Rating of 'IND B+' to the non-cooperating category and has simultaneously withdrawn it. The instrument-wise rating actions are: -- INR96.5 mil. Fund-based limits* migrated to the non- cooperating category and withdrawn; and -- INR53.5 mil. Non-fund-based limits# migrated to the non- cooperating category and withdrawn. *migrated to 'IND B+ (ISSUER NOT COOPERATING)' before being withdrawn #migrated to 'IND A4 (ISSUER NOT COOPERATING)' before being withdrawn KEY RATING DRIVERS Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-objection certificate from the lenders. COMPANY PROFILE Incorporated in October 2004, RIIPL manufactures sponge iron at its plant is located in Jamuria, West Bengal. The company commenced commercial operations in FY10. Abhishek Sharma is the promoter. RAM LAL: CRISIL Migrates D Debt Ratings to Not Cooperating ---------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Ram Lal Aneja Foods Private Limited (RLAF) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 26 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Working Capital 4 CRISIL D (ISSUER NOT Demand Loan COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with RLAF for obtaining information through letters and emails dated December 23, 2020 and January 29, 2021 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 RLAF, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RLAF is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of RLAF to 'CRISIL D Issuer not cooperating'. Incorporated in 2013, RLAF promoted by Mr Ram Lal and his son Mr Ashok Kumar, processes basmati rice. RIYA IMPEX: Ind-Ra Moves 'B' LT Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Riya Impex's Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise, despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR20 mil. Fund-based limits migrated to non-cooperating category with IND B (ISSUER NOT COOPERATING) rating; and -- INR180 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 April 1, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 2010, Riya Impex is a proprietorship firm engaged in the import and export of cashew nuts and spices. ROHIT COLONISERS: CRISIL Withdraws B- Rating on INR19.29cr Loan --------------------------------------------------------------- CRISIL Ratings has withdrawn its rating on the bank facilities of Rohit Colonisers Private Limited (RCPL) on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL's policy on withdrawal of its rating on bank loan facilities. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Rupee Term Loan 19.29 CRISIL B-/Stable (ISSUER NOT COOPERATING; Migrated from 'CRISIL B-/Stable'; Rating Withdrawn) CRISIL Ratings has been consistently following up with RCPL for obtaining information through letters and emails dated January 30, 2021, March 9, 2021 and March 15, 2021 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 RCPL. This restricts CRISIL Ratings' ability to take a forward-looking view on the credit quality of the entity. CRISIL Ratings believes that rating action on RCPL is consistent with 'Assessing Information Adequacy Risk'. CRISIL Ratings has migrated the ratings on the bank facilities of RCPL to 'CRISIL B-/Stable Issuer not cooperating'. CRISIL Ratings has withdrawn its rating on the bank facilities of RCPL on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL's policy on withdrawal of its rating on bank loan facilities. RCPL was incorporated in March 2006, promoted by the Rohit group. The company develops real estate. ROYAL PLAZA: CRISIL Migrates D Debt Rating to Not Cooperating ------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Royal Plaza Inn (RPI) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 10 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with RPI for obtaining information through letters and emails dated March 09, 2021 and March 15, 2021 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 RPI, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RPI is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of RPI to 'CRISIL D Issuer not cooperating'. RPI was set up in 2010 by the proprietor, Mr. M P Shamsudheen. The firm is currently constructing a 108-room hotel in Arayidathupalam (Kozhikode; Kerala). SALASAR EXTERIORS: CRISIL Withdraws D Rating on INR12cr Loans ------------------------------------------------------------- CRISIL Ratings has withdrawn its rating on the bank facilities of Salasar Exteriors and Contour Limited (SECL) on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL's policy on withdrawal of its rating on bank loan facilities. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 11 CRISIL D (ISSUER NOT COOPERATING; Migrated from 'CRISIL D'; Rating Withdrawn) Letter of credit 1 CRISIL D (ISSUER NOT & Bank Guarantee COOPERATING; Migrated from 'CRISIL D'; Rating Withdrawn) CRISIL Ratings has been consistently following up with SECL for obtaining information through letters and emails dated March 23, 2021 and March 26, 2021 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 SECL. This restricts CRISIL Ratings' ability to take a forward looking view on the credit quality of the entity. CRISIL Ratings believes that rating action on SECL is consistent with 'Assessing Information Adequacy Risk'. CRISIL Ratings has migrated the ratings on the bank facilities of SECL to 'CRISIL D/CRISIL D Issuer not cooperating'. CRISIL Ratings has withdrawn its rating on the bank facilities of SECL on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with CRISIL's policy on withdrawal of its rating on bank loan facilities. SECL, incorporated in 1988 in Mumbai, is engaged in interior and exterior designing of commercial office and mall and factories. SECL is promoted by Mr. Shreekrishna Joshi. SECL is listed on National Stock Exchange of India Ltd. SHIVSHAKTI BARRELS: Ind-Ra Cuts Long-Term Issuer Rating to 'C' -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has downgraded Shivshakti Barrels Pvt Ltd's (SBPL) Long-Term Issuer Rating to 'IND C (ISSUER NOT COOPERATING)' from 'IND B+ (ISSUER NOT COOPERATING)'. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best-available information. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The instrument-wise rating actions are: -- INR1.88 mil. Term loan downgraded with IND C (ISSUER NOT COOPERATING) rating; -- INR45 mil. Fund based working capital limit downgraded with IND C (ISSUER NOT COOPERATING) rating; and -- INR13.5 mil. Non fund-based working capital limit maintained in non-cooperating category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on December 16, 2014. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. KEY RATING DRIVERS The downgrade reflects the National Company Law Tribunal's order dated March 10, 2021 to commence the corporate insolvency resolution process for SBPL. RATING SENSITIVITIES Positive: Sustainable operations and an improvement in the liquidity position could be positive for the ratings. Negative: A winding-up or liquidation order will be negative for the ratings. COMPANY PROFILE Incorporated in 2000, SBPL manufactures mild steel barrels in Halol, Gujarat. SUNDARAM MULTI: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Sundaram Multi Pap Limited (SMPL; part of Sundaram Group) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 15.87 CRISIL D (Issuer Not Cooperating) Corporate Loan 15.75 CRISIL D (Issuer Not Cooperating) Funded Interest 5.43 CRISIL D (Issuer Not Term Loan Cooperating) Proposed Long 7.95 CRISIL D (Issuer Not Term Bank Cooperating) Loan Facility CRISIL Ratings has been consistently following up with SMPL for obtaining information through letters and emails dated February 22, 2021, March 9, 2021 and March 15, 2021 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 SMPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SMPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SMPL continues to be 'CRISIL D Issuer Not Cooperating'. SMPL, incorporated in 1985, manufactures stationery, such as notebooks, long books, diaries, note pads, and office stationery under the Sundaram brand. Its manufacturing facility is in Palghar, Maharashtra. The company is managed by the Shah family and is promoted by Mr. Amrut Shah and his brother Mr. Shantilal Shah. SURYA PANEL: CRISIL Reaffirms B- Rating on INR21cr Loans -------------------------------------------------------- CRISIL Ratings has reaffirmed the ratings on certain bank facilities of Surya Panel Private Limited (SPPL), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL B-/Stable (Reaffirmed) Proposed Working Capital Facility 3 CRISIL B-/Stable (Reaffirmed) Term Loan 13 CRISIL B-/Stable (Reaffirmed) CRISIL Ratings on the bank facilities of SPPL continue to reflects the company's modest scale of operations and below average financial risk profile. These weaknesses are partially offset by the experience of its promoters. Analytical Approach CRISIL Ratings has continued treating unsecured loans from promoters as on 31st March 2020 of INR13.95 crore as neither debt nor equity as it is expected to be retained in the company over the medium term. Key Rating Drivers & Detailed Description Weaknesses: * Modest scale of operations: SPPL commenced operations only from the end of fiscal 2018. The modest scale of operations is reflected in the turnover of around INR9 crore for fiscal 2020 and it is estimated to be at INR9 - 10 crore for fiscal 2021. The scale of operations is expected to remain modest over the medium term. * Below average financial risk profile: SPPL's financial risk profile is below average marked by a leveraged capital structure and weak debt protection metrics. The networth was negligible on account of accumulated losses. Interest coverage was below 1, due to high reliance on debt to fund working capital requirement; resulting in high interest costs. Strengths: * Extensive experience of promoters: The promoters have experience for around 20 years in the construction and building products industry, which is expected to support the company. The promoters also hold stake in other group companies engaged in similar business. The extensive experience of the promoters shall aid the company's business risk profile over the medium term. Liquidity: Stretched SPPL's liquidity is stretched marked by moderate utilization of the bank limits though inadequate cash accrual for debt repayments. The working capital limits have been utilized at an average of around 60% for the 6 months ended February 2021. Cash accrual is negative for fiscal 2020; however, repayments are supported through timely infusion of unsecured loans from promoters. The promoters have been infusing unsecured loans, the balance of which was at INR13.95 crore as of March 31, 2020. Improvement in liquidity shall remain a key monitorable over the medium term. Outlook: Stable CRISIL Ratings believes SPPL will continue to benefit over the medium term from its promoters' previous experience in related industries. Rating Sensitivity factors Upward Factors: * Improvement in interest coverage to more than 2 times * Improvement in capital structure Downward Factors: * Decline in operating income by more than 40% * Any large debt-funded capital expenditure; further weakening the financial risk profile * Withdrawal of funding support from promoters Incorporated in December 2014 and promoted by Mr Sudharshan Hadihalli Byregowda and Mr Rushil Krupesh Thakkar, SPPL is setting up a manufacturing facility for high-density fiber boards and medium-density fiber boards. TAMILNADU JAI: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Tamilnadu Jai Bharath Mill Limited (TNJBL) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bank Guarantee 0.5 CRISIL D (Issuer Not Cooperating) Cash Credit 26 CRISIL D (Issuer Not Cooperating) Key Loan 10 CRISIL D (Issuer Not Cooperating) Letter of Credit 4.5 CRISIL D (Issuer Not Cooperating) Long Term Loan 14 CRISIL D (Issuer Not Cooperating) Proposed Long Term 25.45 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with TNJBL for obtaining information through letters and emails dated February 22, 2021, March 9, 2021 and March 15, 2021 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 TNJBL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on TNJBL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of TNJBL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Set up in 1989, TNJBL is part of the Ramalinga group of companies, which has diversified interests in businesses such as spinning and cargo transportation. The company manufactures cotton yarn and operations are currently managed by Mr TR Dhinakaran and his son, Mr D Senthilkumar. TNB POLYMERS: Ind-Ra Moves BB- LT Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Shree TNB Polymers Limited's (STPL) Long-Term Issuer Rating of 'IND BB-' to the non-cooperating category and has simultaneously withdrawn it. The instrument-wise rating actions are: -- INR220 mil. Fund-based limits* migrated to non-cooperating category and withdrawn; -- INR16 mil. Term loan# due on March 2020 migrated to non- cooperating category and withdrawn; and -- INR14 mil. Non-fund-based limits^ migrated to non-cooperating category and withdrawn. * Migrated to 'IND BB- (ISSUER NOT COOPERATING)'/'IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn # Migrated to 'IND BB- (ISSUER NOT COOPERATING)' before being withdrawn ^ Migrated to 'IND A4+ (ISSUER NOT COOPERATING)' before being withdrawn KEY RATING DRIVERS The ratings have been migrated to the non-cooperating category as STPL did not participate in the rating exercise despite continuous requests and follow-ups by Ind-Ra. Ind-Ra is no longer required to maintain the ratings, as the agency has received a no-objection certificate from the lender This is consistent with the Securities and Exchange Board of India's circular dated March 31, 2017 for credit rating agencies. COMPANY PROFILE STPL was incorporated in 2007 to take over the operations of three partnership firms Balaji Polymers, Noble Polymers, Tirupati Plastic Industries. The manufacturing facilities of all three units are located at the Union Territories of Silvassa, Dadra and Nagar Haveli. Established in 1994, Noble Polymers manufactured high-density polyethylene and polypropylene pipes, fittings and drip irrigation pipes with a registered trademark Noble; while Tirupati Plastic Industries, set up in 2000, manufactured solid plastic sheets with a registered trademark Tirupati. Balaji Polymers, established in 2004, manufactured plastic hollow sheets with a registered trademark Wellpack. VINTEGRATE TECHNOLOGY: CRISIL Moves D Ratings to Not Cooperating ---------------------------------------------------------------- CRISIL Ratings has migrated the rating on bank facilities of Vintegrate Technology Private Limited (VTPL) to 'CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 0.5 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) Long Term Loan 5.7 CRISIL D (ISSUER NOT COOPERATING; Rating Migrated) CRISIL Ratings has been consistently following up with VTPL for obtaining information through letters and emails dated March 9, 2021 and March 15, 2021 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 VTPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on VTPL is consistent with 'Assessing Information Adequacy Risk'. Therefore, on account of inadequate information and lack of management cooperation, CRISIL Ratings has migrated the rating on bank facilities of VTPL to 'CRISIL D Issuer not cooperating'. Vintegrate is constructing a commercial property in Panchkula, Chandigarh. The property is expected to have lease space of around 1 lakh sq. ft and is expected to be completed in 2018. VISHAL SPINTEX: Ind-Ra Affirms BB LT Issuer Rating, Outlook Stable ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has affirmed Vishal Spintex's (VS) Long-Term Issuer Rating at 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR310 mil. (increased from INR160 mil.) Fund-based working capital limit affirmed with IND BB/Stable/ IND A4+ rating; -- INR36.7 mil. Non-fund based working capital limit affirmed with IND A4+ rating; and -- INR311.48 mil. (reduced from INR468.8 mil.) Term loan due on August 2026 affirmed with IND BB/Stable rating. KEY RATING DRIVERS The affirmation reflects VS's continued medium scale of operations, as reflected by the revenue of INR1,477.34 million over 10MFY21 (FY20: INR2,095 million). Ind-Ra estimates the company to have reported lower yoy revenue in FY21 owing to the COVID-19 led operational disruptions in 1QFY21. However, Ind-Ra expects the firm's continued improvement in realizations to lead to robust operating profitability and higher operating cash flows in FY22. The ratings also factor in VS's modest margins. Ind-Ra expects the margins to expand to 10%-12% in FY21 (FY20: 7.7%) owing to an improved EBITDA of INR185.03 million in 10MFY21 (INR162.99 million) coupled with reduction in its overhead costs as well as its raw material prices in 2HFY21. The firm's EBITDA margins contracted to 7.7% in FY20 (FY19: 14%) due to an increase in the raw material consumption owing to increased capacity utilization. The firm's return on capital employed stood at 15% in FY20 (FY19: 21%). Liquidity Indicator - Stretched: VS's cash and cash equivalents stood low at INR3.17 million at FYE20 (FYE19: INR11.57 million) against the scheduled repayment obligations of INR50.35 million, INR92.86 million and INR91.3 million in FY21, FY22 and FY23, respectively. Furthermore, the maximum average utilization of the fund-based working capital limits stood at 85% over the last 12-months ending February 2021. However, the cash flow from operations turned positive to INR105 million in FY20 (FY19: negative INR52 million) on the back of favorable working capital changes. The net working capital cycle elongated to 55 days in FY20 (FY19: 39 days) due to a stretch in debtor days to 60 (57) and inventory days to 62 (51). Ind-Ra estimates the firm's cash flow from operations to have turned negative in FY21 due to a likely elongation in the net conversion cycle on the back of the COVID-19 pandemic and its associated impact on the domestic textile market. The agency estimates the firm's free cash flow to have remained positive in FY21 due to the annual receipt of subsidies and the absence of any major capex in the year. The firm opted for the Reserve Bank of India-prescribed moratorium for the interest and principal over March to August 2020. The ratings are also constrained by the partnership nature of business, as there is always an inherent risk of withdrawal of capital at the time of personal contingency. The ratings, however, continue to draw comfort from the likely improvement in credit metrics on the improved EBITDA in FY21. The agency estimates the firm's net leverage (total adjusted net debt/operating EBITDAR) to have improved to 2.75x-3.5x in FY21 (FY20: 3.94x) and the interest coverage (operating EBITDA/gross interest expense) to have sustained above 1.3x (1.32x). The ratings are also supported by the firm's promoters' two decades of experience in the textile industry and group presence in weaving, dyeing and manufacturing of yarn in the textile value chain and support towards the operations of the firm. RATING SENSITIVITIES Negative: A further decline in the revenue and EBITDA margin leading to a deterioration in the liquidity profile and overall credit metrics could be negative for the ratings. Positive: A substantial improvement in the revenue and EBITDA margin, leading to an improvement in the liquidity position and the net leverage below 3x on a sustained basis, could be positive for the ratings. COMPANY PROFILE Based in Ahmedabad, VS is a partnership firm incorporated in April 2014 and promoted by Balvantrai Agarwal and his family sharing equal profit-sharing ratio. The firm manufactures cotton yarn of various counts of 30s, 34s, & 40s with an installed capacity of 15,312 spindles and 10s to 16s count yarn in open-end spinning having installed capacity of 2,688 rotors at its manufacturing unit located in Ahmedabad, Gujarat. VS is a part of Kumar Group. The group has direct presence in weaving, dyeing and manufacturing of yarn in the textile value chain. WESTERN INDIA: CARE Moves C Debt Rating to Not Cooperating ---------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Western India Transport Finance Ltd. (WitFin) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 35.00 CARE C; Negative; ISSUER NOT Facilities COOPERATING Rating moved to ISSUER NOT COOPERATING Category Debentures 25.00 CARE D; ISSUER NOT COOPERATING Rating moved to ISSUER NOT COOPERATING Category Detailed Rationale and Key Rating drivers CARE has been seeking information from WitFin to monitor the rating(s) vide e-mail communications/letters dated February 23, 2021, March 3, 2021, March 8, 2021 and numerous phone calls. However, despite CARE's repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, Western India Transport Finance Company Private Limited has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on Western India Transport Finance Company Private Limited's long term bank facilities and debentures will be denoted as CARE C; Negative/CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Rating Sensitivities: Positive factors - Factors that could, individually or collectively, lead to positive rating action/upgrade: * Substantial improvement in the liquidity profile of the company. Negative factors - Factors that could, individually or collectively, lead to negative rating action/downgrade: * Inability to service the bank facilities on a timely manner. Analytical approach: Standalone Liquidity Profile: Poor During the nationwide lockdown because of COVID-19 pandemic, the company's liquidity position deteriorated. The company was unable to make payment towards one of its NCD issue, and lender has provided a curing period to facilitate regularization of the delay. Additionally, the collections from the existing borrowers are also minimal since the company has extended a moratorium for the period of March to May 2020, to its borrowers. Post the curing period, the company has been unable to pay the obligation prompting the lender to invoke the event of default trigger. Western India Transport Finance Ltd. (WitFin) is an NBFC incorporated in April 2006 and was granted registration from RBI as NBFC in August 2011. The company is promoted by Mr. Nikhil Swadi, who is member of Swadi family which is into transportation business since more than 40 years. The company lends to the 'used commercial vehicle' segment, the major focus being lending of light commercial vehicle (LCV) and Medium/Heavy Commercial Vehicle (MHCV) forming around 62% of outstanding portfolio as of December 31, 2019 while the rest being three-wheeler loading vehicles, construction equipment and passenger cars. The company has presence in Maharashtra, Gujarat, Punjab and Rajasthan. As on December 31, 2019, company's total AUM stood at INR123.90 crore. ================= I N D O N E S I A ================= INDIKA ENERGY: Full Year Net Loss Widens to US$117.5MM in 2020 -------------------------------------------------------------- The Jakarta Post reports that PT Indika Energy, one of Indonesia's top coal companies by output through its subsidiary PT Kideco Jaya Agung, saw its full-year net loss widen 6.5 percent to $117.5 million amid low coal prices in 2020, one of the worst among its peers in the industry. The publicly listed company's 2020 financial report showed that revenue fell 25.4 percent year-on-year (yoy) to $2.1 billion, led by lower coal sales at home and abroad, to outpace a 22.61 percent reduction in cost of goods sold (COGS) to $1.8 billion, The Jakarta Post discloses. The company released a statement on April 6 that its coal sales volume dipped 5.4 percent to 33 million tons last year, compounding the impact on its revenue from global coal prices that fell 16.1 percent yoy to average $37.8 per ton, the report adds. PT Indika Energy Tbk is an Indonesia-based integrated energy company primarily engaged in provisioning energy support services. It classifies its business into three segments: energy resources, energy services and energy infrastructure. Its energy resources segment focuses on coal exploration, production and processing. It has interests in several coal mining companies, such as PT Kideco Jaya Agung and PT Santan Batubara. Its energy services segment provides engineering, procurement and construction (EPC) services, operations and maintenance (O&M) services as well as logistic services to coal mining and oil and gas industry. The energy services business is operated by its subsidiaries, PT Tripatra Engineers and Constructors, PT Tripatra Engineering and PT Petrosea Tbk. Its energy infrastructure segment, which provides mining transportation, logistics and electricity generation capacity, is operated through PT Mitrabahtera Segara Sejati Tbk and PT Cirebon Electric Power. As reported in the Troubled Company Reporter-Asia Pacific on Oct. 13, 2020, Fitch Ratings has assigned a rating of 'BB-' to PT Indika Energy Tbk's (Indika, BB-/Negative) proposed US dollar notes. The proposed notes will be issued by Indika's wholly owned subsidiary, Indika Energy Capital IV PTE. LTD. The proposed notes are rated at the same level as Indika's Issuer Default Rating (IDR) as they constitute direct, unsubordinated and unsecured obligations of the company. Indika plans to use the proceeds from the proposed notes repay some of its existing debt. SAKA ENERGI: Fitch Affirms 'B+' LongTerm IDR, Outlook Negative -------------------------------------------------------------- Fitch Ratings has affirmed PT Saka Energi Indonesia's Long-Term Issuer Default Rating (IDR) at 'B+'. The Outlook remains Negative. The agency also affirmed Saka's senior unsecured US dollar bonds at 'B+' with a Recovery Rating of 'RR4'. Saka's ratings benefit from a two-notch uplift from its Standalone Credit Profile (SCP) of 'b-', based on Fitch's assessment of moderate linkages between Saka and its parent, PT Perusahaan Gas Negara Tbk (PGN, BBB-/Stable), in line with Fitch's Parent and Subsidiary Linkage Rating Criteria. The Negative Outlook reflects risks of further weakening of the linkages between PGN and Saka due to the absence of any affirmative support from PGN, and a continued decline of Saka's business profile in the absence of material reserve replenishments. Fitch continues to assess Saka's SCP at 'b-', reflecting the weak operating and financial profile. Fitch expects Saka to require PGN support to repay or refinance its US dollar notes due in 2024. KEY RATING DRIVERS Moderate Linkage with PGN: Fitch assesses the linkages between Saka and PGN as 'Moderate' due to the significant reputational risks for PGN in the event of a Saka default. The reputational risks are increased by the presence of a cross-default provision between PGN and Saka. Saka is fully owned by PGN and Fitch expects Saka to account for around 30% of consolidated EBITDA until 2023. In addition, Saka's branding is integrated with PGN's in its marketing and financial materials. Fitch revised Fitch's assessment of the linkage to 'Moderate' from 'Strong' early this year, as Fitch views PGN's instructions to Saka to repay USD77 million of the USD155 million of shareholder loans due in January 2021 as evidence of weakening support. The request came amid Saka's tight liquidity, potentially large tax penalties on acquisitions and a challenging operating environment. Saka also does not have any material loan facilities nor concrete funding plans from PGN to address its 2024 bond maturity. Fitch previously expected PGN to support Saka via extending its loan maturities. Legal Linkages Remain Moderate: Fitch believes Saka currently qualifies as a material subsidiary, as defined in the bond documentation of PGN's USD1.35 billion notes, and a default by Saka will trigger a cross-default provision in PGN's bonds, which mature after Saka's USD625 million notes due in 2024. However, Fitch considers this as 'Moderate' legal linkages as PGN's bond documents are somewhat vague about defining a material subsidiary, giving PGN some discretion. Continued deterioration in Saka's asset profile and earnings could further weaken its materiality to PGN. Saka Misaligned in Group Structure: Saka's position in PGN's structure remains uncertain and a lack of continued capital support increases uncertainty about PGN's commitment to Saka. The level of Saka's operational integration and strategic importance to PGN has weakened since mid-2018, following the restructuring of state-owned oil and gas companies, which transferred the state's 57% ownership of PGN to PT Pertamina (Persero) (BBB/Stable). Weakening Operating Profile: Saka's operating profile remains weak, with its proved reserves of 55 million barrels of oil equivalent (boe) (proven and probable (2P) reserves: 81 million boe) as of June 2020, resulting in about four to five years of proved reserve life (2P reserve life: 7 to 8 years), based on the company's expected production over the next three to four years. Significant increases in reserve life are contingent on reserve acquisitions, as Fitch assesses that Saka's organic proved reserve replacement is likely to remain well below 1x because it has low probable reserves against proved reserves. Weaker Financial Profile: Fitch estimates Saka's leverage (net debt/EBITDA) weakened to 8.6x in 2020 (2019: 3.4x), based on Fitch's weaker production forecast and lower oil prices against 2019. Fitch expects leverage to improve but remain between 3.8x and 4.5x from 2021 to 2024. Fitch estimates Saka's EBITDA to have declined to below USD100 million in 2020, and will recover to between USD200 million and USD230 million a year until 2024. Fitch has included the USD361 million in shareholder loans in Saka's debt. Large Investments Unlikely: Saka is unlikely to make large investments until its ownership structure is finalised. Saka's production dropped to 25.7 thousand boe per day (mboepd) in 9M20 from 34.4 mboepd in 2019, as Saka cut production in response to weaker demand amid the coronavirus pandemic and low energy prices. Saka's earnings derive some stability from the sizable share of earnings from long-term fixed-price gas contracts. Tax Penalty Update: Saka expects to receive a tax refund of US40 million in 2H21 from the Indonesian tax authority after an appeal of a previous case involving an asset acquisition. A Supreme Court ruling in a different litigation required Saka to pay the tax authority USD127 million in 2020 as taxes on the 2014 acquisition of Hess Indonesia Pangkah Limited, which held a 65% participating interest in the Pangkah production-sharing contract (PSC). There is potential for an additional USD127 million in penalty for delayed payment. DERIVATION SUMMARY Saka's credit profile is comparable to other small independent oil and gas companies rated globally. The ratings of PT Medco Energi Internasional Tbk (B+/Stable), GeoPark Limited (B+/Stable), Frontera Energy Corporation (B/Stable) and Kosmos Energy Ltd. (B/Rating Watch Negative) are constrained to the 'B' category or below, given the inherent operational risks associated with small scale and low diversification of their oil and gas production profiles. Saka's 'b-' SCP, reflects its limited reserve life, lower production size and weak financial profile. Its operational and financial profile remains considerably weaker than that of Medco, resulting in the two-notch difference between Medco's rating and Saka's SCP. Fitch expects Saka's credit profile to be somewhat comparable to that of Kosmos, as both are of similar size, and have high leverage and limited liquidity. Frontera's ratings reflect its smaller production scale of around 45 mboepd, comparable reserve life of 6.6 years and better credit metrics than Saka. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Oil price of USD41/bbl in 2020, USD58/bbl in 2021, and USD53/bbl thereafter; -- Oil and gas production at 24 mboepd in 2020 and to remain at about 30 mboepd until 2024 when proved reserves expire; -- Additional cash tax on the acquisition of some of its assets of USD255 million, of which 50% was paid in 2020 and 50% in 2021; -- Tax refund of USD40 million in 2H21; -- Annual capex of USD118 million in 2020, and between USD140 million and USD200 million thereafter; -- Saka will be able to refinance all debt due, allowing it to maintain a minimum USD50 million operating cash balance. Recovery Rating Assumptions: -- Saka would be reorganised as a going-concern in bankruptcy rather than liquidated; -- A 10% administrative claim. Going-Concern Approach The going-concern EBITDA estimate is based on the average EBITDA Fitch expects over 2021 and 2024, stressed by 30% to reflect risks associated with oil price volatility, and possible challenges in maintaining production from operating fields, or other factors. An enterprise value multiple of 4.0x is used to calculate post-reorganisation valuation and reflects a mid-cycle multiple for oil and gas and metals and mining companies globally. The multiple used is less than the lowest observable multiple of 4.5x, reflecting limited proved reserve life. Fitch has assumed that the shareholder loans and the US dollar notes rank pari passu, resulting in a recovery rate corresponding to a 'RR3' Recovery Rating for the unsecured notes. However, Fitch has rated the senior unsecured bonds at 'B+'/'RR4' because Indonesia falls into Group D of creditor friendliness under Fitch's Country-Specific Treatment of Recovery Ratings Criteria, and the instrument ratings of issuers with assets in this group are subject to a soft cap at the issuer's IDR and Recovery Rating of 'RR4'. RATING SENSITIVITIES Factor that could, individually or collectively, lead to positive rating action/upgrade: -- The Outlook maybe revised to Stable, upon clear evidence of adequate support from PGN, which can lead to a strengthening of Saka's operating profile, and upon clarity on Saka's position with the group structure, in which case Fitch may continue assess that linkages between PGN and Saka as well as Saka's SCP remain unchanged. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Weakening of linkages with PGN in the absence of significant additional support from PGN, and clarity on Saka's position within the group structure; -- Weakening of Saka's SCP, including but not limited to declining reserves or production in the absence of reserve acquisitions, or a weakening of its liquidity position. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Liquidity Support from PGN Required: Saka will require additional funding to meet its financial commitments, based on Fitch's forecasts. Fitch expects that Saka would not be able to repay its remaining shareholder loans of USD361 million due in January 2022, and would require PGN to continue extending these loans. Apart from the shareholder loans, Saka does not face any near-term debt maturities, with its bonds falling due in 2024. Still, Fitch expects the company to require PGN's support to repay its 2024 bond maturities. 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. ========= J A P A N ========= [*] JAPAN: More Than 700 Eateries Fail in 2020 Amid Pandemic ------------------------------------------------------------ The Japan Times reports that the number of bankruptcies in Japan's eatery industry totaled 715 the last fiscal year, the third largest in 20 years, amid the new coronavirus pandemic, a credit research firm said. The dour result for the year ending March 31 reflects 183 failures in the bar and beer hall sector, the highest since fiscal 2000 when comparative data became available, Teikoku Databank said in a recent survey report on firms that went bankrupt with debts of ¥10 million ($91,000) or more, The Japan Times discloses. The total number follows a record 784 bankruptcies the previous year when the industry struggled with labor shortages and after a consumption tax increase to 10% from 8%, a Teikoku Databank official in charge of the survey said. "It is hard to expect the bankruptcy figure to fall sharply" in the current fiscal year, given requests to cut operating hours remain and new cases are surging again in Osaka and some other prefectures, the official, as cited by The Japan Times, said. Still, the start of coronavirus vaccinations, stimulus measures and the Tokyo Olympics and Paralympics slated for this summer should help spur consumer sentiment and improve the business environment in the industry, he added. In the first eight months, monthly bankruptcy cases mostly rose from a year earlier, The Japan Times says. But the trend changed in December when they sagged 31.3% as the government's Go To Travel and Go To Eat subsidy programs to support the tourism and restaurant industries paid off. According to The Japan Times, financial aid for restaurants and bars that complied with requests to close by 8:00 p.m. under the second state of emergency also contributed to reducing business failures in the final few months of the last fiscal year, the official said. The numbers of failed eateries dropped 36% and 56.3% in January and February respectively, followed by a 2.6% decline in March, the report discloses. ================= S I N G A P O R E ================= KRISENERGY: Shareholders Call for EGM Over Restructuring Concerns ----------------------------------------------------------------- The Business Times reports that KrisEnergy Ltd has received a requisition notice from two shareholders to convene an extraordinary general meeting (EGM), over concerns about the restructuring of the mainboard-listed company. The shareholders are Ng Kay Yip and Serle Investments, who said that they hold 21.13 per cent of KrisEnergy's shares, the company revealed in a bourse filing on April 10, BT relays. Serle is represented by Michael Yeoh Sock Siong. In a requisition notice dated April 7, they raised concerns over the state of KrisEnergy's restructuring, and called for a resolution to form a committee of minority investors, of up to five members, BT says. BT relates that the committee would be able to appoint an independent financial adviser (IFA) and other advisers to review KrisEnergy's financial position and propose an alternative restructuring plan if needed. Serle and Mr. Ng have asked for the EGM to be held within 21 days from the letter. About KrisEnergy KrisEnergy Limited -- https://krisenergy.com/ -- is a Singapore-based investment holding company. The Company is an independent upstream oil and gas company with a portfolio of exploration, appraisal, development and production assets focused on the geological basins in Asia. The Company operates through exploration and production of oil and gas in Asia segment. The Company holds interests in approximately 20 licenses in Bangladesh, Cambodia, Indonesia, Thailand and Vietnam covering a gross acreage of approximately 60,750 square kilometers. In August 2019, the firm sought court protection from creditors' legal action while it restructured its debts, according to The Business Times. Keppel Corporation, a creditor and shareholder of KrisEnergy, then publicly came out to support the application and KrisEnergy's management in formulating a restructuring plan. Trading in its shares has been suspended pending the restructuring, BT noted. As at Dec. 31, 2019, the group had about US$503 million in borrowings and debt securities repayable within the next one year or on demand. ============= V I E T N A M ============= ANZ BANK: Fitch Alters Outlook on BB Foreign Currency IDR to Pos. ----------------------------------------------------------------- Fitch Ratings has revised the Outlook on the Long-Term Issuer Default Rating (IDR) of ANZ Bank (Vietnam) Limited (ANZV) to Positive, from Stable. At the same time, the agency has affirmed the bank's Long-Term Foreign-Currency IDR at 'BB', Long-Term Local-Currency IDR at 'BBB-' and Support Rating at '3'. The revision of the Outlook follows Fitch's revision of its Outlook on the Vietnam sovereign (BB/Positive) to Positive, from Stable, on 1 April 2021, and reflects Fitch's view that support from ANZV's parent, Australia and New Zealand Banking Group Limited (ANZ, A+/a+) is likely to remain robust. KEY RATING DRIVERS ANZV's ratings are underpinned by Fitch's expectation of a moderate probability of support from ANZ, if required. This takes into consideration the bank's limited size relative to its parent's assets and ANZ's strong credit profile. Fitch's assessment of ANZ's propensity to provide timely support to ANZV also takes into account ANZ's full ownership of ANZV and the two entities' common branding. It also recognises ANZV's limited role in the group compared with that of larger subsidiaries in more strategically important markets. ANZV benefits from strong linkages with its parent, including through client referrals, funding support and access to technical expertise. ANZV's Long-Term Foreign-Currency IDR is constrained by Vietnam's Country Ceiling of 'BB', reflecting transfer and convertibility risk, while its Long-Term Local-Currency IDR is rated two notches above the sovereign rating, as Fitch believes that sovereign restrictions on repayment of local-currency obligations will be lower than those on foreign-currency obligations. RATING SENSITIVITIES Factor that could, individually or collectively, lead to positive rating action/upgrade: -- An upgrade in the sovereign IDR and Country Ceiling is likely to lead to similar action on ANZV's Long-Term IDRs, assuming that there is no significant reduction in Fitch's perception of the parent's ability and propensity to support the bank. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- A negative revision in the sovereign rating is likely to result in similar revisions to the bank's IDRs. Fitch may also take negative rating action if there is a change in Fitch's assessment of ANZ's propensity or ability to extend extraordinary support in a timely manner. This could occur if Fitch sees a significant reduction in ANZ's stake in the bank, though Fitch thinks this scenario is unlikely in the near term. -- There would have to be a large deterioration in ANZ's Viability Rating for ANZV's IDR to be negatively affected, as it is currently seven notches higher than Vietnam's Country Ceiling. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond 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. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS The ratings of ANZV are linked to the intrinsic credit profile of the parent, ANZ, but are constrained by Vietnam's IDR and Country Ceiling of 'BB'. 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. BIM LAND: Moody's Assigns First Time B2 Corp Family Rating ---------------------------------------------------------- Moody's Investors Service has assigned a corporate family rating of B2 to BIM Land Joint Stock Company, a property developer focusing on creating tourism-led townships in Vietnam (Ba3 positive). The rating outlook is stable. This is the first time Moody's has assigned a rating to BIM Land. RATINGS RATIONALE "The B2 corporate family rating reflects BIM Land's established track record in the development of tourism-led townships, which are located in Vietnam's fastest-growing tourist destinations. The rating incorporates governance risk stemming from full ownership by BIM Group and BIM Land's private company status," says Jacintha Poh, a Moody's Vice President and Senior Credit Officer. BIM Land's rating takes into account the company's good access to funding, having established long-term banking relationships with domestic state-owned banks such as JSC Bank for Foreign Trade of Vietnam (Vietcombank, Ba3 positive), JSC Bank for Invstmnt & Developmnt of Vietnam (BIDV, Ba3 positive) and Vietnam JSC Bank for Industry and Trade (VietinBank, Ba3 positive) as well as the government's policy bank, Vietnam Development Bank. In 2019, BIM Land also secured long-term loans from International Finance Corporation (Aaa stable). "Although BIM Land is exposed to the inherent volatility of the hospitality industry, demand for the company's products will be supported by Vietnam's favorable demographics. We expect the company's disciplined land banking, strong margins and large unbooked contracted sales to continue supporting healthy financial metrics over the next 12-18 months," adds Poh. The stable outlook reflects Moody's expectation that BIM Land's 2021 contracted sales will improve significantly from the previous year and the company will continue to manage its cash flows prudently such that liquidity will remain good over the next 12-18 months. BIM Land has an established track record of creating destination townships, as indicated by the growth of its two flagship developments, Ha Long Marina township and Phu Quoc Marina township. The company's good execution ability has allowed it to successfully pursue branding and operating partnerships with major international hospitality operators, such as InterContinental Hotels Group plc and Hyatt Hotels Corporation (Baa3 negative) to develop, sell and operate some of its hospitality properties. These partnerships have enhanced the value and branding of BIM Land's products. Moody's expects BIM Land to derive around half of its revenue from the sale of hospitality real estate and the leasing of hotels and serviced apartments in 2021 and 2022. Consequently, the company's earnings depend highly on the demand for investment products as well as travel and tourism, which tends to fluctuate and are reliant on domestic and international economic conditions. Nonetheless, Moody's expects demand for BIM Land's products to be supported by Vietnam's favorable demographics of continued economic growth, growing disposable incomes, rising domestic tourism and increased travel spending by consumers in the middle and upper income segments. BIM Land's contracted sales fell around 60% to VND3.8 trillion in 2020, from VND10.3 trillion in 2019, because of weak demand and a delay in new project launches as a result of the pandemic. However, based on quarterly sales data, the sales momentum has picked up in the fourth quarter (Q4) of 2020 and continued into Q1 2021. Moody's forecasts BIM Land's contracted sales will recover to around VND7.2 trillion in 2021 and VND7.7 trillion in 2022. On the other hand, BIM Land's revenue grew around 15% to VND5.6 trillion in 2020 because the company adopts a presale strategy for its development projects and recognizes revenue only upon handover; hence, there is typically a time lag of two to three years between contracted sales and revenue recognition. Moody's projects BIM Land's revenue will increase to VND8.7 trillion in 2021 and VND10.5 trillion in 2022, helped by its large amount of unbooked contracted sales. Such sales will account for around 80% of the company's total revenue in 2021 and 60% in 2022. BIM Land's adjusted debt will increase significantly in 2021 because of new borrowings and growing lease liabilities; hence, its financial metrics will weaken but remain good. Leverage, as measured by adjusted debt/homebuilding EBITDA, will be 3.6x in 2021 and 2.8x 2022, while EBIT interest coverage will be around 3.9x in 2021 and 4.4x in 2022. In 2020, BIM Land had an adjusted debt/homebuilding EBITDA of 1.9x and EBIT interest coverage of 6.9x. Moody's expects BIM Land's liquidity to be good over 2021 and 2022. As of December 31, 2020, the company had cash and cash equivalents of VND1.7 trillion. Moody's expects BIM Land to generate around VND2.7 trillion of operating cash flow in 2021-22, which together with its cash balance, will be more than sufficient to cover its maturing debt obligations of around VND1.7 trillion, maximum dividend payment of around VND2.0 trillion and projected committed capital spending of around VND2.3 trillion. With respect to environmental, social and governance risks, BIM Land's rating incorporates governance risk stemming from its private company status and full ownership by BIM Group, which in turn, is privately owned by its founders, Doan Quoc Viet and his wife, Khong Thi Hien. The founders and their two children have control over the decision-making of BIM Group and its subsidiaries because three of them hold key positions of Chairman (Doan Quoc Viet), CEO (Doan Quoc Huy) and COO (Mai Doan). Additionally, all four of them are directors on a seven-member board, with only one independent director. BIM Group underwent a reorganization exercise in 2018 to split all business segments into individual group of operating companies, which operate independently. BIM Land is the crown jewel of BIM Group, contributing more than 70% of the group's consolidated revenue. Although related-party transactions between affiliated companies are limited and are done on an arm's length basis, there are loans at three operating companies (BIM Salt, BIM Seafood and Lifestyle), which were incurred before the reorganization, still secured by BIM Land's assets. As of December 31, 2020, the outstanding loans totaled around $21 million and there is a cap of $40 million allowed under BIM Land's loan covenants. Given BIM Land was created as a standalone company only in 2018, there is a short track record of BIM Land adhering to its financial targets and its approach towards shareholder distributions. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING BIM Land's rating is unlikely to be upgraded over the next 12-18 months given the company's large exposure to the hospitality industry, where the pace of recovery remains uncertain. Also, BIM Land has a short track record as a standalone company, adhering to its financial targets and its approach towards shareholder distributions. However, positive momentum could emerge, if BIM Land successfully executes its business plans while maintaining healthy credit metrics and good liquidity. Metrics that would support an upgrade include adjusted debt/homebuilding EBITDA below 3.0x, and adjusted homebuilding EBIT/interest expense above 4.0x on a sustained basis. Moody's could downgrade BIM Land's ratings if (1) the company fails to implement its business plans; (2) there is a deterioration in the property market, leading to protracted weakness in the company's operations and credit quality; or (3) there is evidence of cash leaking from BIM Land to fund affiliated companies, for example, through intercompany loans, aggressive cash dividends or investments in affiliates. Metrics indicative of a potential downgrade include adjusted debt/homebuilding EBITDA above 4.0x; and adjusted homebuilding EBIT/interest expense below 3.0x on a sustained basis. The principal methodology used in this rating was Homebuilding And Property Development Industry published in January 2018. BIM Land Joint Stock Company (BIM Land) is a property developer focusing on creating tourism-led townships in Vietnam. Its flagship projects are located in areas with high potential for tourism development such as Ha Long city in Quang Ninh province and Phu Quoc island in Kien Giang province. BIM Land is wholly-owned by BIM Group, which in turn is owned by the founders, Doan Quoc Viet and his wife, Khong Thi Hien. STANDARD CHARTERED: Fitch Alters Outlook on 'BB' IDR to Positive ---------------------------------------------------------------- Fitch Ratings has revised the Outlook on the Long-Term Issuer Default Rating (IDR) of Standard Chartered Bank (Vietnam) Limited (SCBVL) to Positive, from Stable. At the same time, the agency has affirmed the bank's Long-Term Foreign-Currency IDR at 'BB', Long-Term Local-Currency IDR at 'BBB-' and Support Rating at '3'. The revision of the Outlook follows Fitch's revision of the Outlook on the Vietnam sovereign (BB/Positive) to Positive, from Stable, on 1 April 2021. It also reflects Fitch's view that support from SCBVL's 100% parent, Standard Chartered Bank (SCB, A+/Negative/a) is likely to remain intact. KEY RATING DRIVERS SCBVL's ratings are underpinned by Fitch's expectation of a moderate probability of support from SCB, if required. This takes into consideration SCB's 100% ownership in SCBVL, the bank's expanding role in the group's regional strategy, high operational and management integration and SCB's strong ability to provide support; SCBVL's assets accounted for less than 0.5% of the parent's assets. SCBVL's Long-Term Foreign-Currency IDR is constrained by Vietnam's Country Ceiling of 'BB', reflecting transfer and convertibility risks in the market. Its Long-Term Local-Currency IDR is rated two notches above the sovereign, as Fitch believes sovereign restrictions on the repayment of local-currency obligations will be lower than those on foreign-currency obligations. RATING SENSITIVITIES Factor that could, individually or collectively, lead to positive rating action/upgrade: -- An upward revision in the sovereign IDR and Country Ceiling would result in a similar upgrade in SCBVL's IDRs, assuming there is no significant reduction in Fitch's perception of the parent's ability or propensity to support the bank. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Negative rating action on the sovereign rating, leading to a lower Country Ceiling, would be likely to lead to a corresponding downgrade in the bank's IDRs. -- SCB's Viability Rating is six notches above Vietnam's Country Ceiling. This means there would have to be a large reduction in SCB's ability or propensity to support the bank before SCBVL's ratings would be affected. A significant stake sale of SCBVL, for example, may suggest a perceived reduced propensity to provide support, however, Fitch thinks that this is unlikely to occur in the near term. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond 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. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS The ratings of SCBVL are linked to the intrinsic credit profile of the parent, SCB. The ratings, however, are also constrained by Vietnam's sovereign rating and Country Ceiling. 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. VIETCOMBANK: Fitch Alters Outlook on 'BB-' LT IDR to Positive ------------------------------------------------------------- Fitch Ratings has revised the Outlook on Joint Stock Commercial Bank For Foreign Trade of Vietnam's (Vietcombank) Long-Term Issuer Default Rating (IDR) to Positive from Stable. The bank's IDR was affirmed at 'BB-'. The bank's Viability Rating was last reviewed on January 15, 2021 and is not part of this review. The revision in Vietcombank's Outlook follows Fitch's affirmation of Vietnam's sovereign rating at 'BB', with a revision in the Outlook to Positive from Stable on April 1, 2021. KEY RATING DRIVERS Vietcombank's IDRs are driven by Fitch's expectation of a moderate likelihood of state support if needed, reflected in the bank's Support Rating of '3' and Support Rating Floor (SRF) of 'BB-', which drive its Long-Term IDR. Support propensity for Vietcombank is underpinned by the bank's high systemic importance, with about 11% share of system deposits, as well as its majority state ownership of 75% and quasi-policy role as one of four state-owned commercial banks. The SRF remains one notch below the sovereign rating as Fitch thinks the timeliness of support may be somewhat hampered by the large size of Vietnam's banking system relative to GDP and the magnitude of financial support that would potentially be needed. The revision in Vietcombank's Outlook reflects Fitch's view of the sovereign's improving ability to provide extraordinary support and the Outlook on the bank's IDR mirrors that of the sovereign. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: IDR, SRF and Support Rating -- The Long-Term IDR and SRF are sensitive to movements in the sovereign's ratings. An upgrade of the sovereign is likely to result in a revision upwards of the SRF and consequently an upgrade of the Long-Term IDR, provided the state's propensity to provide support to Vietcombank is fundamentally unchanged. -- The sovereign's ability to provide timely support to the banking system in general, and the most systemically important banks (including Vietcombank) in particular, would also be enhanced if, in Fitch's view, the potential contingent obligation to support the banks is manageable at any given sovereign rating level. Such a reassessment may result in an equalisation of the bank's SRF and Long-Term IDR with the sovereign rating. -- The Support Rating will not be upgraded unless Vietcombank's SRF is revised upwards by two or more notches. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Negative rating action on the sovereign rating or its Outlook will lead to corresponding rating action on Vietcombank. Any perceived weakening of the sovereign's propensity to provide support to the bank, such as divestment of its shareholding to less than 50%, or the government viewing the bank as not systemically important, can also lead to a revision downwards of its SRF, and in turn, a downgrade of its IDR. Fitch considers these to be unlikely in the near term. -- The Support Rating will not be downgraded unless Vietcombank's SRF is revised downwards by two or more notches. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond 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. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS Vietcombank's ratings are linked to Vietnam's sovereign rating. ESG Considerations Vietcombank has an ESG Relevance Score of '4' for Governance Structure due to the significant influence of the state in the bank's strategic objectives and a potential lack of effective independent board oversight that could weaken the protection of creditor and stakeholder rights. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The bank's strong state linkages are also factored into Fitch's assessment of the likelihood of state support, which drives its SRF and Long-Term IDR, including the current revision in the IDR Outlook. Vietcombank also has an ESG Relevance Score of '4' for Financial Transparency due to the quality and accuracy of financial reporting standards in Vietnam, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Notwithstanding notable improvements made in recent years, Fitch believes loan classification standards among Vietnamese banks in general are not always consistently applied, leading to systematic understating of non-performing assets. A lack of transparency can increase uncertainty and investment risks for investors and weigh on its ratings. 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. VIETINBANK: Fitch Alters Outlook on 'BB-' LT IDR to Positive ------------------------------------------------------------ Fitch Ratings has revised the Outlook on Vietnam Joint Stock Commercial Bank for Industry and Trade's (Vietinbank) Long-Term Issuer Default Rating (IDR) to Positive from Stable. The bank's IDR was affirmed at 'BB-'. The bank's Viability Rating was last reviewed on January 15, 2021 and is not part of this review. The revision in Vietinbank's Outlook follows Fitch's affirmation of Vietnam's sovereign rating at 'BB', and revision in the Outlook to Positive from Stable on April 1, 2021. KEY RATING DRIVERS IDR, SUPPORT RATING AND SUPPORT RATING FLOOR Vietinbank's IDRs are driven by Fitch's expectation of a moderate likelihood of state support being extended, if necessary, and this is reflected in the bank's Support Rating of '3' and Support Rating Floor (SRF) of 'BB-', which drive its Long-Term IDR. The state's propensity to extend support to Vietinbank is underpinned by the bank's high systemic importance, with about 10% share of system deposits, as well as its majority state ownership (65%) and quasi-policy role as one of the four state-owned commercial banks. The SRF remains one notch below the sovereign rating as there is some uncertainty about the timeliness of support due to the large size of Vietnam's banking system relative to GDP and the magnitude of financial support that would potentially be needed. The revision in Vietinbank's Outlook reflects Fitch's view of the sovereign's improving ability to provide extraordinary support and mirrors the revision in the Outlook on the sovereign rating. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- The Long-Term IDR and SRF are sensitive to movements in the sovereign's ratings. An upgrade of the sovereign is likely to result in a revision upwards of the SRF and, in turn, an upgrade of the Long-Term IDR, provided the state's propensity to provide support to Vietinbank is maintained. -- The sovereign's ability to provide timely support to the banking system in general, and the most systemically important banks (including Vietinbank) in particular, would also be enhanced if, in Fitch's view, the potential contingent obligation to support the banks is manageable at any given sovereign rating level. Such a reassessment may result in an equalisation of the bank's SRF and Long-Term IDR with the sovereign rating. -- The Support Rating will not be upgraded unless Vietinbank's SRF is revised upwards by two or more notches. Factor that could, individually or collectively, lead to negative rating action/downgrade: -- Negative rating actions on the sovereign rating or its Outlook will lead to corresponding rating actions on Vietinbank. Any perceived weakening of the sovereign's propensity to provide support to Vietinbank, such as divestment of its shareholding to less than 50%, or the government viewing the bank as not systemically important, can also lead to a revision downwards of its SRF and, in turn, a downgrade of its IDR. Fitch consider these to be unlikely in the near term. The Support Rating will not be downgraded unless Vietinbank's SRF is revised downwards by two or more notches. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond 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. PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS Vietinbank's ratings are linked to Vietnam's sovereign rating. ESG CONSIDERATIONS Vietinbank has an ESG Relevance Score of '4' for Governance Structure due to the significant influence of the state in the bank's strategic objectives and a potential lack of effective independent board oversight that could weaken the protection of creditor and stakeholder rights. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The bank's strong state linkages are also factored into Fitch's assessment of the likelihood of state support, which drives its SRF and Long-Term IDR, including the current revision in the IDR Outlook. Vietinbank also has an ESG Relevance Score of '4' for Financial Transparency due to the quality and accuracy of financial reporting standards in Vietnam, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Notwithstanding improvements made in recent years, including the bank's implementation of Basel II and redemption of its outstanding Vietnam Asset Management Company bonds, Fitch believes loan classification standards among Vietnamese banks in general are not consistently applied, leading to systematic understating of non-performing assets. A lack of transparency can increase uncertainty and investment risks for investors and weigh on its ratings. 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. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2021. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***