/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/210426.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 26, 2021, Vol. 24, No. 77 Headlines A U S T R A L I A BSC SOLAR: Second Creditors' Meeting Set for April 29 GARDEN CITY: Second Creditors' Meeting Set for April 30 GREENSILL CAPITAL: Australian Parent Opts for Liquidation LA TROBE 2021-1: Moody's Gives (P)B1 Rating to AUD1.5M Cl. F Notes LITHGOW AGED: Second Creditors' Meeting Set for April 28 MONZA SMASH: First Creditors' Meeting Set for May 3 NUGEN HEALTH: First Creditors' Meeting Set for April 30 QANTAS AIRWAYS: Boss Says Rival's Insolvency Claim ‘Baseless' TORRENS TRUST 2021-1: S&P Assigns BB Rating on Class F Notes WGH HOLDINGS: Second Creditors' Meeting Set for April 30 C H I N A CHINA: Central Bank Sounds High-Risk Warnings to Rural Lenders LIFESTYLE INTERNATIONAL: Moody's Withdraws Ba2 Corp Family Rating I N D I A ALBANNA ENGINEERING: CRISIL Keeps D Ratings in Not Cooperating ANTONY ROAD: Ind-Ra Moves 'BB' LT Issuer Rating to Non-Cooperating APURVA TEXTILE: Ind-Ra Assigns B+ LT Issuer Rating, Outlook Stable ARIYANAYAKI AGRO: CRISIL Keeps B+ Debt Ratings in Not Cooperating AVATAR SOLAR: CRISIL Lowers Rating on INR24cr Term Loan to B BANKEY BIHARI: Ind-Ra Assigns B+ LT Issuer Rating, Outlook Stable CPR LABORATORIES: CRISIL Keeps D Debt Ratings in Not Cooperating JAYPEE INFRATECH: Creditors to Meet on April 29 to Discuss 2 Bids JSP PROJECTS PRIVATE: Insolvency Resolution Process Case Summary KNOWLEDGE EDUCATION: Ind-Ra Keeps 'D' Rating in Non-Cooperating MAXLITE AAC: CRISIL Assigns B+ Rating to INR13cr Loans MAYA SAHA: CRISIL Keeps B- Debt Ratings in Not Cooperating N. A. SHELAR: CRISIL Keeps C Debt Ratings in Not Cooperating NAYAN CONSTRUCTIONS: CRISIL Keeps B+ Ratings in Not Cooperating NEXTGEN TEXTILE: CRISIL Keeps B- Debt Rating in Not Cooperating OM THREADS: CRISIL Keeps B+ Debt Ratings in Not Cooperating ONEUP MOTORS: CRISIL Keeps B Debt Ratings in Not Cooperating PANCHDEEP COTTON: CRISIL Keeps B+ Debt Rating in Not Cooperating PIXIE DUST: CRISIL Keeps B- Debt Ratings in Not Cooperating POOJA SPONGE: CRISIL Keeps D Debt Ratings in Not Cooperating PRAGATI INGOTS: CRISIL Keeps B+ Debt Ratings in Not Cooperating RELIABLE INFRA: CRISIL Keeps D Debt Ratings in Not Cooperating SAI SUDHA: CRISIL Lowers Rating on INR11cr Loans to B SARAF TRADING: Ind-Ra Moves B- LT Issuer Rating to Non-Cooperating SHIVAM WOOD: Ind-Ra Moves 'B+' LT Issuer Rating to Non-Cooperating SIDDHESHWAR CONSTRACTION: CRISIL Cuts Rating on INR8cr Loan to D SONAC: CRISIL Keeps D Debt Ratings in Not Cooperating Category VISHAL RICE: CRISIL Keeps B+ Debt Ratings in Not Cooperating VTJ SEA: CRISIL Keeps D Debt Ratings in Not Cooperating Category I N D O N E S I A REASURANSI NASIONAL: Fitch Affirms 'BB+' IFS Rating, Outlook Stable J A P A N TOSHIBA CORP: Says CVC Buyout Offer Has Stalled P H I L I P P I N E S PALM TREE: Placed Under PDIC Receivership S I N G A P O R E ASIA TUNNELLING: Court to Hear Wind-Up Petition on May 7 LOTUS-GESAR CAPITAL: Court to Hear Wind-Up Petition on May 7 S O U T H K O R E A SSANGYONG MOTOR: Seeks to Cut 10 Executive Jobs Amid Receivership V I E T N A M BIM LAND: Fitch Assigns B Rating on Proposed USD Unsec. Notes HOME CREDIT: Fitch Alters Outlook on 'B' LT IDR to Stable - - - - - ================= A U S T R A L I A ================= BSC SOLAR: Second Creditors' Meeting Set for April 29 ----------------------------------------------------- A second meeting of creditors in the proceedings of BSC Solar Pty Ltd has been set for April 29, 2021, at 11:00 a.m. at the offices of QV1 Conference Centre, Level 2, Theatrette, 250 St Georges Terrace, in Perth, WA. 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 28, 2021, at 4:00 p.m. Jimmy Trpcevski of WA Insolvency Solutions was appointed as administrator of BSC Solar on March 15, 2021. GARDEN CITY: Second Creditors' Meeting Set for April 30 ------------------------------------------------------- A second meeting of creditors in the proceedings of Garden City Capital Pty Ltd has been set for April 30, 2021, at 12:45 p.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 28, 2021, at 5:00 p.m. Daniel Peter Juratowitch of Cor Cordis was appointed as administrator of Garden City on March 18, 2021. GREENSILL CAPITAL: Australian Parent Opts for Liquidation --------------------------------------------------------- Paulina Duran at Reuters reports that creditors of Greensill Capital Pty, the Australian parent of the collapsed British supply chain financier, voted on April 22 to liquidate the company, its administrator said, triggering deeper investigations into the conduct of its directors. Grant Thornton (GT), the liquidator appointed for the Australian parent and its operating companies in Britain, said the majority of 26 creditors owed AUD4.6 billion (US$3.6 billion) by the collapsed financier voted for liquidation, Reuters relates. "The liquidators will continue to identify and realise available assets, monitor developments in relation to the administrations of Greensill UK and the Greensill Bank AG, and continue their investigations in relation to Greensill Capital Pty," Reuters quotes GT as saying in a statement. The creditor vote comes as prosecutors in the German city of Bremen raided the offices and homes of Greensill bankers, including the residences of five officials suspected of possible wrongdoing, Reuters notes. In March, German regulator BaFin filed a criminal complaint with prosecutors over an audit that found Greensill Bank, a standalone entity owned by the Australian parent, could not provide evidence of receivables on its balance sheet, Reuters recounts. The German lender collapsed days later, Reuters relays. GT told creditors in an April 15 report that as part of the liquidation of the Australian parent, further investigations will be prepared into the conduct of Greensill officers, and their findings reported to the Australian corporate regulator, Reuters notes. Other secured creditors include Credit Suisse and BOQ Finance, while unsecured creditors include Softbank, vendors of companies Greensill bought in 2020, employees and trade creditors, Reuters relays, citing the report. The Association of German Banks has also put a contingent liability of EUR2 billion (US$2.41 billion) on the Australian parent that might be payable if available insurance and bank assets prove insufficient to indemnify it for deposit protection payments, Reuters discloses. The association has already paid out about EUR2.7 billion to more than 20,500 Greensill Bank customers in a deposit guarantee scheme after the collapse, Reuters recounts. 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, were appointed 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. The U.S. Trustee for Region 2 appointed an official committee of unsecured creditors on April 7, 2021. The committee is represented by George P. Angelich, Esq. LA TROBE 2021-1: Moody's Gives (P)B1 Rating to AUD1.5M Cl. F Notes ------------------------------------------------------------------ Moody's Investors Service has assigned the following provisional ratings to the notes to be issued by Perpetual Corporate Trust Limited (the Trustee) as trustee of La Trobe Financial Capital Markets Trust 2021-1. Issuer: La Trobe Financial Capital Markets Trust 2021-1 AUD562.5 million Class A1 Notes, Assigned (P)Aaa (sf) AUD106.5 million Class A2 Notes, Assigned (P)Aaa (sf) AUD52.5 million Class B Notes, Assigned (P)Aa2 (sf) AUD6 million Class C Notes, Assigned (P)A2 (sf) AUD12 million Class D Notes, Assigned (P)Baa2 (sf) AUD6.75 million Class E Notes, Assigned (P)Ba2 (sf) AUD1.5 million Class F Notes, Assigned (P)B1 (sf) AUD1.5 million Equity 1 Notes are not rated by Moody's AUD0.75 million Equity 2 Notes are not rated by Moody's The transaction is a securitisation of first-ranking mortgage loans secured over residential properties located in Australia. The loans were originated and are serviced by La Trobe Financial Services Pty Limited (La Trobe Financial, unrated). La Trobe Financial has been an originator of mortgage loans for over 69 years. As of 31 March 2021, La Trobe Financial had AUD12 billion in total funds under management consisting of a portfolio of Australian mortgage assets. In December 2017, funds managed by the New York-based asset management firm Blackstone acquired an 80% equity stake in the La Trobe Financial group. La Trobe Financial has extensive securitisation experience through its various warehouse funding arrangements and eleven term RMBS transactions it has completed since 2014. This will be its twelfth term RMBS transaction and the first for 2021. RATINGS RATIONALE The provisional ratings take into account, among other factors, evaluation of the underlying receivables and their expected performance, evaluation of the capital structure and credit enhancement provided to the notes, availability of excess spread over the life of the transaction, the liquidity facility in the amount of 1.50% of the notes balance, the legal structure, and the experience of La Trobe Financial as servicer. Moody's MILAN CE — representing the loss that Moody's expects the portfolio to suffer in the event of a severe recession scenario — is 10.8%. Moody's expected loss for this transaction is 1.3%. Moody's analysis has considered the effect of the coronavirus outbreak on the Australian economy as well as the effects that the announced government measures, put in place to contain the virus, will have on the performance of consumer assets. The contraction in economic activity in the second quarter will be severe and the overall recovery in the second half of the year will be gradual. However, there are significant downside risks to Moody's forecasts in the event that the pandemic is not contained and lockdowns have to be reinstated. As a result, the degree of uncertainty around Moody's forecasts is unusually high. Moody's regard the coronavirus outbreak as a social risk under its ESG framework, given the substantial implications for public health and safety. Key transactional features are as follows: While the Class A2 Notes are subordinate to the Class A1 Notes in relation to charge-offs, Class A2 and Class A1 Notes rank pari passu in relation to principal payments, based on their stated amounts, before the call option date. This feature reduces the absolute amount of credit enhancement available to the Class A1 Notes. Once step-down conditions are satisfied, all notes will receive their pro-rata share of principal, with equity notes share allocated towards repayment of notes in reverse sequential order, i.e. starting from Class F Notes. Step down conditions include, among others, no unreimbursed charge-offs. The servicer is required to maintain the weighted-average interest rates on the mortgage loans at least at 3.5% above one-month BBSW, which is within the current portfolio yield of 4.9%. This generates a high level of excess spread available to cover losses in the pool. Key pool features are as follows: The pool has a relatively high weighted-average scheduled loan-to-value (LTV) ratio of 72.5%. There are no loans with a scheduled LTV ratio over 80.5%. Around 69.5% of the borrowers are self-employed. The income of these borrowers is subject to higher volatility than employed borrowers, and they may experience higher default rates. About 55.5% of the loans were extended on an alternative documentation basis. Loans secured by investment properties represent 45.7% of the pool. Based on Moody's classifications, around 11.4% of borrowers have adverse credit histories. 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. 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. LITHGOW AGED: Second Creditors' Meeting Set for April 28 -------------------------------------------------------- A second meeting of creditors in the proceedings of Lithgow Aged Care Limited has been set for April 28, 2021, at 2:00 p.m. via teleconference. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by April 27, 2021, at 4:00 p.m. Henry Joseph Kazar, Justin Walsh and Lachlan Abbott of Ernst & Young were appointed as administrators of Lithgow Aged on March 16, 2021. MONZA SMASH: First Creditors' Meeting Set for May 3 --------------------------------------------------- A first meeting of the creditors in the proceedings of Monza Smash Repairs Pty Ltd will be held on May 3, 2021, at 11: a.m. at Hyatt Regency Hotel, 161 Sussex Street, in Sydney, NSW. Andre Lakomy and Jason Tang of Cor Cordis were appointed as administrators of Monza Smash on April 21, 2021. NUGEN HEALTH: First Creditors' Meeting Set for April 30 ------------------------------------------------------- A first meeting of the creditors in the proceedings of NuGen Health Pty Ltd, formerly trading as NuGen Pharmacy, will be held on April 30, 2021, at 2:30 p.m. via virtual meeting. Daniel Robert Soire and Bruce Gleeson of Jones Partners were appointed as administrators of NuGen Health on April 20, 2021. QANTAS AIRWAYS: Boss Says Rival's Insolvency Claim ‘Baseless' --------------------------------------------------------------- The Australian Financial Review reports that a war of words has erupted between Qantas boss Alan Joyce and Regional Express (Rex) deputy chairman John Sharp as the two airlines battle over a domestic air travel market recovering quickly from the pandemic. AFR relates that while Mr. Sharp earlier last week argued Qantas might be "technically insolvent", Mr. Joyce has now questioned whether the former federal transport minister misled the market over the carrier's financial health. Decrying his rival's claims as "baseless" and "outlandish", Mr. Joyce said Rex had presided over a disastrous launch of its new flights servicing the lucrative interstate capital city market, AFR relays. Rex is looking to take on Qantas and Virgin in the lucrative 'golden triangle' routes between Australia's three biggest cities. "They have presided over the worst launch of a new jet airline in Australia's aviation history, with empty aircraft and announced routes never flown," AFR quotes Mr. Joyce as saying. "The frequency with which Rex makes baseless criticisms of Qantas points to it being a key part of their strategy . . . There are now so many ridiculous claims from Mr. Sharp and Rex, we have started a new page on our website to debunk them," he said. Mr. Sharp had taken issue with a statement a week prior, when Mr. Joyce said, "When Qantas plays its best game, it always wins." Mr. Sharp instead argued that Rex had outperformed Qantas on a return-on-revenue basis and claimed the national carrier was in a precarious position given its level of borrowings versus its cash on hand. Qantas had AUD2.6 billion of cash as of December 31, with another AUD1.6 billion of loan facilities it could call on if needed to service the AUD7.3 billion of liabilities due within the next year or so. Just AUD922 million of this is debt, with the rest a mix of supplier payments and lease obligations, AFR discloses. About Qantas Airways Headquartered in Mascot, Australia, Qantas Airways Limited provides transportation of passengers through two airlines including Qantas (full-service carrier) and Jetstar (low-cost carrier), operating international, domestic and regional services. As reported in the Troubled Company Reporter-Asia Pacific on March 29, 2021, Egan-Jones Ratings Company, on March 17, 2021, maintained its 'BB' foreign currency and local currency senior unsecured ratings on debt issued by Qantas Airways Limited. TORRENS TRUST 2021-1: S&P Assigns BB Rating on Class F Notes ------------------------------------------------------------ S&P Global Ratings assigned its ratings to seven classes of prime residential mortgage-backed securities (RMBS) to be issued by Perpetual Trustee Co. Ltd. as trustee for TORRENS Series 2021-1 Trust. The ratings reflect: -- S&P's view of the credit risk of the underlying collateral portfolio, including the fact that this is a closed portfolio, which means no further loans will be assigned to the trust after the closing date. -- S&P's view that the credit support is sufficient to withstand the stresses it applies. This credit support comprises note subordination and lenders' mortgage insurance to 15.7% of the portfolio, which covers 100% of the face value of these loans, accrued interest, and reasonable costs of enforcement. -- S&P's expectation that the various mechanisms to support liquidity within the transaction, including an excess revenue reserve funded by available excess spread (subject to conditions), a liquidity facility equal to 0.80% of the aggregate principal balance outstanding of the loan portfolio and principal draws, are sufficient under its stress assumptions to ensure timely payment of interest. -- The benefit of a standby fixed- to floating-rate interest-rate swap provided by National Australia Bank Ltd. to hedge the mismatch between receipts from any fixed-rate mortgage loans and the variable-rate RMBS. -- The legal structure of the trust, which is established as a special-purpose entity, and meets our criteria for insolvency remoteness. S&P Global Ratings believes there remains high, albeit moderating, uncertainty about the evolution of the coronavirus pandemic and its economic effects. Vaccine production is ramping up and rollouts are gathering pace around the world. Widespread immunization, which will help pave the way for a return to more normal levels of social and economic activity, looks to be achievable by most developed economies by the end of the third quarter. However, some emerging markets may only be able to achieve widespread immunization by year-end or later. S&P said, "We use these assumptions about vaccine timing in assessing the economic and credit implications associated with the pandemic. As the situation evolves, we will update our assumptions and estimates accordingly." Ratings Assigned TORRENS Series 2021-1 Trust Class A1, A$920.000 million: AAA (sf) Class A2, A$27.500 million: AAA (sf) Class AB, A$8.000 million: AAA (sf) Class B, A$16.500 million: AA (sf) Class C, A$13.100 million: A (sf) Class D, A$7.100 million: BBB (sf) Class E, A$3.600 million: BB (sf) Class F, A$4.200 million: Not rated WGH HOLDINGS: Second Creditors' Meeting Set for April 30 -------------------------------------------------------- A second meeting of creditors in the proceedings of WGH Holdings Pty Ltd has been set for April 30, 2021, at 2:30 p.m. via virtual meeting. 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 29, 2021, at 5:00 p.m. Mervyn Jonathan Kitay of Worrells Solvency & Forensic Accountants was appointed as administrator of WGH Holdings on March 17, 2021. ========= C H I N A ========= CHINA: Central Bank Sounds High-Risk Warnings to Rural Lenders -------------------------------------------------------------- Caixin Global reports that China's central bank sounded high-risk warnings to rural financial institutions in its most recent assessment of the banking system, even as the industry generally showed improvement. Caixin relates that the People's Bank of China (PBOC) listed 285 rural commercial banks, cooperative banks and credit unions as high risk after assessing the risk exposure of 4,399 banking institutions nationwide in the fourth quarter of 2020. An additional 127 smaller, village-level banks were also labeled high-risk, according to the PBOC. LIFESTYLE INTERNATIONAL: Moody's Withdraws Ba2 Corp Family Rating ----------------------------------------------------------------- Moody's Investors Service has withdrawn Lifestyle International Holdings Limited's Ba2 corporate family rating, and the Ba3 senior unsecured debt ratings on the notes guaranteed by Lifestyle and issued by LS Finance (2022) Limited and LS Finance (2025) Limited. Prior to the withdrawal, the outlook on the ratings was negative. RATINGS RATIONALE Moody's has decided to withdraw the ratings because it believes it has insufficient or otherwise inadequate information to support the maintenance of the ratings. COMPANY PROFILE Listed on the Hong Kong Stock Exchange in 2004, Lifestyle International Holdings Limited is a Hong Kong-based retail operator that focuses on mid- to upper-end department stores. The company operates two SOGO stores in Hong Kong. ========= I N D I A ========= ALBANNA ENGINEERING: CRISIL Keeps D Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Albanna Engineering (India) Private Limited (AEIPL) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 14.4 CRISIL D (Issuer Not Cooperating) Letter of Credit 0.6 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with AEIPL for obtaining information through letters and emails dated September 30, 2020 and March 31, 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 AEIPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AEIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of AEIPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Albanna Engineering (India) Pvt Ltd (AEIPL), established in 2013, is a wholly-owned subsidiary of Albanna Engineering LLC (ABE) which is a major EPC contractor in mechanical engineering field in UAE. AEIPL was established solely for taking up projects in India which fall under group fields of core competence like Oil & Gas and Process & Engineering Industries. The company is promoted by Mr. Sreekumar Nair. ANTONY ROAD: Ind-Ra Moves 'BB' LT Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Antony Road Transport Solutions Pvt Ltd's (ARTS) Long-Term Issuer Rating of 'IND BB' to the non-cooperating category, while simultaneously maintaining it on Rating Watch Evolving (RWE). 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)/RWE' on the agency's website. The instrument-wise rating actions are: -- INR1.468 bil. Long term loans due on November 2025 migrated to non-cooperating category and maintained on RWE with IND BB (ISSUER NOT COOPERATING) /RWE; -- INR5 mil. Fund-based limits migrated to non-cooperating category and maintained on RWE with IND BB (ISSUER NOT COOPERATING) /RWE/IND A4+ (ISSUER NOT COOPERATING) /RWE; and -- INR277 mil. Non-fund-based limits migrated to non-cooperating category and maintained on RWE with IND A4+ (ISSUER NOT COOPERATING) /RWE. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 27, 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 2011, Antony Road Transport Solutions is a special purpose vehicle and wholly-owned subsidiary of Antony Garages Private Limited. ARTS provide public transport services in the form of about 238 buses in Cluster 7 of New Delhi, 350 buses in Cluster 13 and 250 buses in Cluster 16A. APURVA TEXTILE: Ind-Ra Assigns B+ LT Issuer Rating, Outlook Stable ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has assigned Apurva Textile (AT) a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. The instrument-wise rating actions are: -- INR75 mil. Fund-based working capital limit assigned with IND B+/Stable/IND A4 rating; and -- INR59.58 mil. Term loans due on September 2024 assigned with IND B+/Stable rating. KEY RATING DRIVERS The ratings reflect AT's small scale of operations with a revenue of INR514.20 million in FY20 (FY19: INR434.60 million). The yoy increase in the revenue in FY20 was due to the expansion of the firm's Tirupati branch. However, Ind-Ra expects the revenue to have declined in FY21 as, on April 1, 2020, the partners bifurcated their business into two firms i.e., Apurva Textiles (Tirupati branch) and Apurva Skills (Chittoor branch). The revenue decline would have also resulted from the disruptions caused by the COVID-19 outbreak. During 11MFY21, the company achieved a revenue of INR233.76 million. The ratings are further constrained by AT's modest credit metrics, with an interest coverage (operating EBITDAR/gross interest expense) of 1.24.x in FY20 (FY19: 1.39x) and a net financial leverage (adjusted net debt/operating EBITDAR) of 4.77x (4.16x). The credit metrics deteriorated yoy in FY20, due to an increase in interest cost to INR33.9 million (FY19: INR30.9 million), along with a rise in the total debt to INR194.4 million (INR170.7 million). Ind-Ra expects the credit metrics to have deteriorated further in FY21, owing to a further deterioration in the absolute EBITDA due to lower revenue. Liquidity Indicator - Poor: AT fully utilized its fund-based working capital facilities during the 12 months ended February 2021, with a few instances of overutilization for up to two days. Its cash flow from operations turned positive at INR51.3 million in FY20 from negative INR66.9 million in FY19, due to an elongated-yet-improved cash conversion cycle of 242 days (283 days), owing to a reduction in the inventory days to 328 (376) and creditor days to 87 (95). The firm had a cash balance of INR4.5 million at FYE20. It availed the Reserve Bank of India-prescribed moratorium over March-August 2020. The ratings are supported by the firm's healthy EBITDA margins due to the fixed margins available in the branded textile garment business. The firm's margins came in at 15.6% in FY20 (FY19: 16.9%), with a return on capital employed of 15% (21%). The yoy decline in the EBITDA margin in FY20 was due to a substantial increase in the revenue from the low-margin trading segment. Ind-Ra expects the margins to have remained stable on a yoy basis in FY21, due to the firm maintaining some branded textile garments in the business. The ratings are further supported by the firm's partners' experience of over two decades in the garment trading business. RATING SENSITIVITIES Negative: Any decline in the revenue or EBITDA margin, leading to deterioration in the credit metrics, on a sustained basis, could be negative for the ratings. Positive: A substantial rise in the revenue, along with an increase in the EBITDA margin, leading to the interest coverage exceeding 1.5x, along with an improvement in the liquidity position, could be positive for the ratings. COMPANY PROFILE AT was established in 1999 as a partnership firm. The firm is engaged in the trading of ready-made garments. It has two outlets in Chittoor and Tirupati, Andhra Pradesh. ARIYANAYAKI AGRO: CRISIL Keeps B+ Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Ariyanayaki Agro Foods International (AAFI) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 9.4 CRISIL B+/Stable (Issuer Not Cooperating) Long Term Loan 0.6 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with AAFI for obtaining information through letters and emails dated September 28, 2020 and March 17, 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 AAFI, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on AAFI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of AAFI continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Incorporated in 1995 in Pallathur, Tamil Nadu, as a proprietorship firm by Mr. K Sivaprakasam, AAFI mills and processes paddy into rice, rice bran, broken rice, and husk. AVATAR SOLAR: CRISIL Lowers Rating on INR24cr Term Loan to B ------------------------------------------------------------ CRISIL Ratings said has revised the ratings on bank facilities of Avatar Solar Private Limited (ASPL) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 24 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB+/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with ASPL for obtaining information through letters and emails dated January 30, 2021 and March 31, 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 ASPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ASPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of ASPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB+/Stable Issuer Not Cooperating'. ASPL was incorporated in 2012 and promoted by Mr. Falgun Dave and Ms Ushaben Oza to set up a 5-MW photovoltaic solar farm in Charanka, near Patan, Gujarat, under the Jawaharlal Nehru National Solar Mission migration scheme. It has entered into a PPA with GUVNL to supply solar power at INR9.28 per unit for 25 years. BANKEY BIHARI: Ind-Ra Assigns B+ LT Issuer Rating, Outlook Stable ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has assigned Shri Bankey Bihari Plastics (SBBP) a Long-Term Issuer Rating of 'IND B+'. The Outlook is Stable. The instrument-wise rating action is: -- INR68.7 mil. Fund-based working capital limits assigned with IND B+/Stable rating. KEY RATING DRIVERS The ratings reflect SBBP's small scale of operations, as indicated by revenue of INR517.50 million in FY20 (FY19: INR2504.93 million). The revenue declined due to a shift in the line of business, with the company moving from open trading of polymer-related products to being an authorized del credere agent (DCA) and consignment stockiest (CS) for ONGC Petro Addition Limited's (OPal) products in Punjab via its Ludhiana outlet. Post the acquisition of the dealership, the company commenced the distribution of the polymer-based products manufactured by OPal and discontinued the trading of polymer products of other companies. In FY21, the agency expects the revenue to have declined further due to the abovementioned shift in the business. During 11MFY21, SBBP earned commission amounting to INR12.1 million on the total purchases made as the DCA and booked revenue of INR360.25 million through its CS function. The ratings reflect SBBP's modest EBITDA margins due to the trading nature of the business and intense competition in the industry. Furthermore, the prices of polymer-based products are highly volatile as it is dependent on crude oil prices. In FY20, SBBP's EBITDA margins rose to 2.75% (FY19: 0.47) owing to the company being appointed as an authorized dealer of OPal products. The ROCE was 8.6% in FY20 (FY19: 7.6%). During 11MFY21, SBBP booked EBITDA margins of 2.8%. In FY21, the margins are likely to have remained between 2.5%-3%. The ratings also factor in the weak credit metrics due to the modest margins and high debt levels. The net financial leverage (adjusted net debt/operating EBITDA) improved to 7.4x in FY20 (FY19: 11.7x) due to the decline in the total debt to INR107.88 million (INR143.86 million) and improvement in the absolute EBITDA to INR14.2 million (FY19:11.7 million). However, the interest coverage (operating EBITDA/gross interest expenses) remained stable at 1.2x in FY20 (FY19:12x) due to a proportionate increase in the interest expenses. The metrics are likely to have improved in FY21 due to the likely rise in the margins and decline in short-term debt. Liquidity Indicator: Poor – SBBP's average utilization of the fund-based limits was 94% for the 12 months ended February 2021. Its cash flow from operations turned positive at INR34.25 million in FY20 (FY19: negative INR50.44 million) due to favorable changes in the working capital. The cash conversion cycle elongated to 80 days in FY20 (FY19: 20 days), owing to an increase in the receivables period to 122 days (55 days). The cash and cash equivalents amounted to INR0.75 million at FYE20 (FYE19: INR0.24 million) against the total debt INR105.64 million. The working capital cycle is likely to have remained elongated in FY21 owing to the continued stretch in the receivables period and decline in the credit period, as OPal offers incentives in case of timely payments and imposes penalties in case of any elongation in the payables period. SBBP bears a major portion of the risk associated with the business as it makes payments to OPal first, and then receives payments from its customers. The company is dependent upon its short-term loans, for its working capital requirements. SBBP had availed the Reserve Bank of India-prescribed debt moratorium for its fund-based facilities amounting to INR115 million, which was paid off by March 2021. The ratings, however, are supported the partner's experience of more than a decade in the trading of polymer-based products. RATING SENSITIVITIES Negative: A decline in the scale of operations, leading to deterioration in the overall credit metrics and/or a further pressure on the liquidity position, all on a sustained basis, will be negative for the ratings. Positive: An increase in the scale of operations, along with an improvement in the overall credit metrics and liquidity profile, with the interest coverage increasing above 1.8x, all on a sustained basis, will be positive for the ratings. COMPANY PROFILE SBBP is a partnership firm that was incorporated on 20 November 2012. The firm is a DCA and CS for OPaL's polymer products and caters to all areas of Punjab via its Ludhiana outlet. CPR LABORATORIES: CRISIL Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of CPR Laboratories Private Limited (CPR) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 0.9 CRISIL D (Issuer Not Cooperating) Proposed Long Term 5.54 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 3.56 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with CPR for obtaining information through letters and emails dated September 28, 2020 and March 17, 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 CPR, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CPR is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CPR continue to be 'CRISIL D Issuer Not Cooperating'. Incorporated in March 2016 and promoted by Mr. Dalai Ravi Kumar, Mr. Dalai Vijay Kumar, Ms Bangaru Srilaxmi, and Ms Dalai Saraswathi, CPR is setting up an API plant in Visakhapatnam. JAYPEE INFRATECH: Creditors to Meet on April 29 to Discuss 2 Bids ----------------------------------------------------------------- Livemint.com reports that financial creditors of Jaypee Infratech will meet on April 29 to discuss the resolution plans submitted by state-owned NBCC and Suraksha group to acquire the realty firm through an insolvency process. In a regulatory filing, Jaypee Infratech informed that a meeting of Committee of Creditors (CoC) will be held on April 29, 2021. Livemint.com says the agenda of the meeting was not disclosed, but sources said the financial creditors, which include banks and home buyers, will continue their negotiations with the two resolution applicants. In the last meeting of the CoC held on April 17, lenders asked NBCC and Suraksha group to improve their bid and offer more land parcels under the land-debt swap deal. They told the bidders to specify the treatment of dissenting financial creditors, sources had said, Livemint.com relates. Earlier this month, NBCC and Mumbai-based Suraksha group submitted their revised bids to acquire Jaypee Infratech through an insolvency process, as per the direction of the Supreme Court, the report recalls. In their bids, NBCC has offered 1,526 acre land and Suraksha group around 2,040 acres to lenders. Livemint.com relates that NBCC and Suraksha have made some changes in their revised plans in view of the apex court direction to return INR750 crore with accrued interest to Jaiprakash Associates Ltd (JAL), the promoter group of Jaypee Infratech Ltd (JIL), after reconciliation of accounts between the two Jaypee group firms. On Yamuna Expressway, NBCC has proposed to offer 82 per cent equity in the road asset to lenders and it will retain 18 per cent share. In the 2019 bid, it had proposed 100 per cent transfer of highway. This is the fourth round of bidding process in the matter of Jaypee Infratech, which went into an insolvency process in August 2017, Livemint.com notes. About Jaypee Infratech Jaypee Infratech Limited (JIL) is engaged in the real estate development. The Company's business segments include Yamuna Expressway Project and Healthcare. The Company's Yamuna Expressway Project is an integrated project, which inter alia includes construction of 165 kilometers long six lane access controlled expressway from Noida to Agra with provision for expansion to eight lane with service roads and associated structures on build, own, operate and transfer basis. The Company provides operation and maintenance of Yamuna Expressway for over 36 years, collection of toll and the rights for development of approximately 25 million square meters of land for residential, commercial, institutional, amusement and industrial purposes at over five land parcels along the expressway. The Healthcare business segment includes hospitals. The Company has commenced development of its Land Parcel-1 at Noida, Land Parcel-3 at Mirzapur and Land Parcel-5 at Agra. JIL features in the Reserve Bank of India's first list of non-performing assets accounts and had debt exposure of over INR9,783 crore as of September 2017. The parent company, Jaiprakash Associates Ltd. (JAL), owes more than INR29,000 crore to various banks. On Aug. 8, 2017, the National Company Law Tribunal (NCLT), Allahabad bench accepted lender IDBI Bank's plea and classified JIL as an insolvent company. With this, the board of directors of the company remains suspended. Anuj Jain was appointed as Interim Resolution Professional (IRP) to manage the company's business. The IRP had invited bids from investors interested in acquiring JIL and completing the stuck real estate projects in Noida and Greater Noida. In the first round of insolvency proceedings conducted in 2018, the INR7,350-crore bid of Lakshdeep, part of Suraksha Group, was rejected by lenders. The Committee of Creditors (CoC) rejected the bids of Suraksha Realty and NBCC Ltd in the second round held in May-June 2018, according to The Economic Times. On Nov. 6, 2019, the Supreme Court directed completion of Jaypee Infratech's insolvency process within 90 days and said the revised resolution plan will be invited only from NBCC and Suraksha Realty, ET related. JSP PROJECTS PRIVATE: Insolvency Resolution Process Case Summary ---------------------------------------------------------------- Debtor: JSP Projects Private Limited Plot No. E-27, Ground Floor Geetanjali Enclave Delhi 110017 India Insolvency Commencement Date: April 7, 2021 Court: National Company Law Tribunal, Bench-VI, New Delhi Estimated date of closure of insolvency resolution process: October 13, 2021 Insolvency professional: Mansij Arya Interim Resolution Professional: Mansij Arya 308-310, Agarwal Chambers-2 30/31, Veer Savarkar Block Shakarpur, Delhi 110092 E-mail: pcsmansij@gmail.com cirp.jsp@gmail.com Last date for submission of claims: April 30, 2021 KNOWLEDGE EDUCATION: Ind-Ra Keeps 'D' Rating in Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has maintained Knowledge Education Foundation' bank facilities' 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 ratings. The ratings will continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR38.63 mil. Term loan (long-term) due on February 2019 maintained in non-cooperating category with IND D (ISSUER NOT COOPERATING) rating; and -- INR15 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 26, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Knowledge Education Foundation is a registered foundation that, along with Delhi Public School Society, runs a Central Board of Secondary Education-affiliated school under the name Delhi Public School in Bikaner. MAXLITE AAC: CRISIL Assigns B+ Rating to INR13cr Loans ------------------------------------------------------ CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the long term bank facilities of Maxlite AAC Blocks (India) Private Limited (MABPL). Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1.80 CRISIL B+/Stable (Assigned) Long Term Loan 8.52 CRISIL B+/Stable (Assigned) Working Capital Term Loan 2.68 CRISIL B+/Stable (Assigned) The rating reflects MABPL's presence in a highly fragmented industry, exposure to cyclicality in end-user industry and an average financial risk profile. These weaknesses are partially offset by the extensive industry experience of the promoters and efficient working capital cycle Key Rating Drivers & Detailed Description Weakness: * Presence in a highly fragmented industry: The building material industry has large organized players, as well as numerous local and unorganized entities catering to demand in regional markets. This limits bargaining power with customers and suppliers, resulting in modest operating margins. Any significant change in scale and operating margins will remain a key rating sensitivity factor over the medium term. * Exposure to cyclicality in end user industry: The MABPL caters to the real estate, construction, and infrastructure industries. The end-user industries are cyclical, and are strongly correlated to economic cycles. In the past, because of economic recession, the construction sector faced a slowdown, with several projects getting stalled or delayed, thus impacting the entire industry. * Average financial risk profile: MABPL's capital structure is highly leveraged with gearing and TOL/ANW (Total outside liabilities to adjusted net worth) at over 17 and 21 times respectively as on 31st March 2020. Debt protection metrics are moderate with interest coverage and NCATD (Net cash accruals to total debt) of 1.8 and 0.09 times in FY2020. These metrics are constrained due to modest scale of operations and are expected to improve over the medium term. Strengths: * Extensive industry experience of the promoters: The promoters have an extensive experience in the building products industry. This has given them an understanding of the dynamics of the market, and has enabled them to establish relationships with suppliers and customers. * Efficient working capital cycle: Gross current assets were less than 75 days in FY2020. GCA days is efficient due to efficient inventory policy and debtors collection cycle. Almost 60 – 70% of order value is received in advance and the rest is collected within 30 days. The company is also able to stretch its creditor's cycle for close to 60 days, thus minimizing working capital requirement. Liquidity: Adequate Average Bank limit utilization was moderate at around 50% in the 12 months ending January 2021. Expected cash accruals of over INR1.1 and INR2.2 crore in FY2021 and FY2022 respectively is sufficient against term debt obligations over the same period. The company had availed interest moratorium on its bank facilities for 6 months in 2020. The promoters are likely to infuse equity or extend unsecured loans to help fund the company's working capital cycle or honor repayment obligations, should the need arise. Current ratio was modest at 0.86 times as on March 31, 2020. Outlook Stable CRISIL Ratings believes MABPL will continue to benefit from the extensive experience of its promoter, and established relationships with clients. Rating Sensitivity factors Upward factor * Sustained improvement in scale of operation to over INR36 crore * Sustenance of operating margin at over 13%, leading to higher cash accruals * Funding support from promoters in the form of equity or unsecured loans to support the financial risk profile of the company Downward factor * Decline in operating margins to below 10% or stretch in working capital cycle * Any large debt-funded capital expenditure weakens capital structure * A substantial increase in the company's working capital requirements thus weakening the company's liquidity and overall financial profile. MABPL is engaged in the manufacturing of Autoclaved Aerated Concrete (AAC) Blocks. It's manufacturing facility is located in Anekal Taluk, Bangalore with an installed capacity of 22,000 blocks per day. MABPL is owned and managed by Mr. Ramaiah Giriyappa and Mr. Darshan R Kumar. MAYA SAHA: CRISIL Keeps B- Debt Ratings in Not Cooperating ---------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Maya Saha (MSA) continues to be 'CRISIL B-/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL B-/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with MSA for obtaining information through letters and emails dated September 28, 2020 and March 31, 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 MSA, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MSA is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MSA continue to be 'CRISIL B-/Stable Issuer Not Cooperating'. Established in 2004, MSA is a partnership firm of Mr. Souvik Saha, Mr. Tanmoy Saha, and Ms Maya Saha; operations are primarily managed by Mr. Souvik Saha. It is an authorized distributor for the brands and varieties of United Spirits Ltd, United Breweries Ltd, Sula Vineyards Pvt Ltd, and Allied Blenders Distillers for West Bengal. N. A. SHELAR: CRISIL Keeps C Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of N. A. Shelar and Company (NASC) continue to be 'CRISIL C Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft Facility 4 CRISIL C (Issuer Not Cooperating) Proposed Long Term 1 CRISIL C (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with NASC for obtaining information through letters and emails dated September 28, 2020 and March 17, 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 NASC, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on NASC is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of NASC continue to be 'CRISIL C Issuer Not Cooperating'. Established in the year 1983, as a proprietorship concern of Mr. Narayan Shelar, NASC is a civil contractor primarily engaged in construction of buildings (residential and commercial) in the Mumbai region of Maharashtra. NAYAN CONSTRUCTIONS: CRISIL Keeps B+ Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Nayan Constructions (NC) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 5 CRISIL B+/Stable (Issuer Not Cooperating) Proposed Long Term 4 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with NC for obtaining information through letters and emails dated September 28, 2020 and March 17, 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 NC, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on NC is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of NC continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Incorporated in November 2012 by Mr. V Jeevan Reddya and Mr. K Sudarshan Rao, Nayan Constructions (NC) is involved in construction and sale of residential property. The company is based out of Hyderabad. NEXTGEN TEXTILE: CRISIL Keeps B- Debt Rating in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Nextgen Textile Park Private Limited (NTPPL) continues to be 'CRISIL B-/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Term Loan 10 CRISIL B-/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with NTPPL for obtaining information through letters and emails dated September 28, 2020 and March 17, 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 NTPPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on NTPPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of NTPPL continue to be 'CRISIL B-/Stable Issuer Not Cooperating'. NTPPL, incorporated in March 2007, is a special purpose vehicle promoted by Mr. Aloke Bhatnagar, Mr. B S Bhatnagar, and Mr. Dinesh Gangadharan (nominee director) to set up a textile park near Pali (Rajasthan). The company was set up under SITP, supported by the Ministry of Textiles, the Government of India, to set-up textile park infrastructure to house units of small entrepreneurs. The project is expected to be fully operational from April 2016. OM THREADS: CRISIL Keeps B+ Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of OM Threads Limited (OMTL) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL B+/Stable (Issuer Not Cooperating) Long Term Loan 9.3 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with OMTL for obtaining information through letters and emails dated September 28, 2020 and March 17, 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 OMTL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on OMTL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of OMTL continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Incorporated by Mr. Sanjeev Kumar & his friends in June 2014, OMTL manufactures cotton yarn in the counts of 10, 12 and 14. The company has production capacity of 15 tonnes per day and is located at Pataran, near Patiala. ONEUP MOTORS: CRISIL Keeps B Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Oneup Motors India Private Limited (OMIPL) continue to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Electronic Dealer 14 CRISIL B/Stable (Issuer Not Financing Scheme Cooperating) (e-DFS) Inventory Funding 7.25 CRISIL B/Stable (Issuer Not Facility Cooperating) Proposed Inventory 0.25 CRISIL B/Stable (Issuer Not Funding Cooperating) CRISIL Ratings has been consistently following up OMIPL for obtaining information through letters and emails dated September 28, 2020 and March 17, 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 OMIPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on OMIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of OMIPL continue to be 'CRISIL B/Stable Issuer Not Cooperating'. Incorporated in 2006, OMIPL is a dealer of MSIL vehicles and has two showroom-cum-service centers and three service centers in Lucknow. PANCHDEEP COTTON: CRISIL Keeps B+ Debt Rating in Not Cooperating ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Panchdeep Cotton Industries (PCI; part of the Panchdeep group) continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 9 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with PCI for obtaining information through letters and emails dated September 28, 2020 and March 17, 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 PCI, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on PCI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of PCI continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. PCI, a partnership firm set up in 1996 by Mr. Zinabhai Patel and Mr. Pravinbhai Patel, gins and presses raw cotton (kapas); it also crushes cotton seed to manufacture cotton seed oil. Incorporated in 2007, PCIPL, promoted by Mr. Zinabhai Patel, Mr. Pravinbhai Patel, and Mr. Akashbhai Shah (non-active), also gins and presses raw cotton; it owns a cotton seed oil unit. For arriving at its rating, CRISIL has combined the business and financial risk profiles of PCI and Panchdeep Cotton Industries Private Limited (PCIPL). This is because the two entities, together referred to as the anchdeep group, are under a common management and are in a similar line of business. PIXIE DUST: CRISIL Keeps B- Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Pixie Dust (PD) continue to be 'CRISIL B-/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Term Loan 15 CRISIL B-/Stable (Issuer Not Cooperating) Proposed Long Term 5 CRISIL B-/Stable (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with PD for obtaining information through letters and emails dated September 28, 2020 and March 17, 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 PD, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on PD is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of PD continue to be 'CRISIL B-/Stable Issuer Not Cooperating'. Promoted by Ms Swapna Mathivanan, Mr. Jeevan Nedunchezhiyan, and Dr M A S Subramanian in 2013, PD is setting up a luxury resort with 40 cottages, swimming pool, restaurant and bar. The firm has a restaurant, Celine's Kitchen, in Puducherry, which has been operational since 2014. POOJA SPONGE: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Pooja Sponge Private Limited (PSPL) continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 9 CRISIL D (Issuer Not Cooperating) Letter of Credit 4 CRISIL D (Issuer Not Cooperating) Term Loan 7 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with PSPL for obtaining information through letters and emails dated September 28, 2020 and March 17, 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 continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. PSPL was incorporated in 2002 in Rourkela and was initially promoted by the Odisha-based Gupta family. The company was acquired in 2006 by the Agarwal family. PSPL manufactures sponge iron at its facility in Rourkela (kiln capacity of 200 tonne per day) and also trades in steel flat and long products. Operations are managed by director, Mr. Kavit Agarwal. PRAGATI INGOTS: CRISIL Keeps B+ Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Pragati Ingots and Power Private Limited (PIPPL) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.2 CRISIL B+/Stable (Issuer Not Cooperating) Proposed Long Term 5.2 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating) Term Loan 0.6 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with PIPPL for obtaining information through letters and emails dated September 28, 2020 and March 17, 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 PIPPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on PIPPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of PIPPL continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Incorporated in 2009, PIPPL is promoted by Mr. Rajesh Agrawal and Mr. Pradeep Agrawal. The company manufactures mild steel ingots, which find application in rolling mills, where they are used as raw material to manufacture various steel products. The manufacturing plant is in Raipur. RELIABLE INFRA: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Reliable Infrastructure Private Limited (RIPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 1.15 CRISIL D (Issuer Not Cooperating) Proposed Long Term 2.50 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Working Capital 3.35 CRISIL D (Issuer Not Term Loan Cooperating) CRISIL Ratings has been consistently following up with RIPL for obtaining information through letters and emails dated September 28, 2020 and March 17, 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 RIPL, which restricts CRISIL Ratings' ability to take a forward-looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RIPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RIPL continues to be 'CRISIL D Issuer Not Cooperating'. Incorporated in 2008, RIPL is promoted by Mr. Preetpal Singh Kohli and Mr. Aslam Khan. The company is engaged in mining and crushing of stones. SAI SUDHA: CRISIL Lowers Rating on INR11cr Loans to B ----------------------------------------------------- CRISIL Ratings said it has revised the ratings on bank facilities of Sai Sudha Motors Private Limited (SSMPL) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB/Stable ISSUER NOT COOPERATING') Inventory Funding 5 CRISIL B/Stable (ISSUER NOT Facility COOPERATING; Revised from 'CRISIL BB/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with SSMPL for obtaining information through letters and emails dated September 28, 2020 and March 17, 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 SSMPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SSMPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SSMPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB/Stable Issuer Not Cooperating'. Incorporated in 2012, SSMPL is an authorised dealer for TML's heavy commercial vehicles; it also offers servicing of vehicles, and sale of spare parts. The company covers four towns in Odisha (Cuttack, Jajpur, Kendrapara, and Jagatsinghpur) and operates two 3S (showroom-service-spares) outlets in Cuttack and Jajpur and one service outlet in Jagatsinghpur. Operations are managed by Mr. Bimalendu Mohanty and his brother, Mr. Suvendu Mohanty. SARAF TRADING: Ind-Ra Moves B- LT Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Saraf Trading Corporation 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 B- (ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR70.0 mil. Fund-based working capital limits migrated to non-cooperating category with IND B- (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; -- INR8.1 mil. Term loan due on October 2022 migrated to non- cooperating category with IND B- (ISSUER NOT COOPERATING) rating; and -- INR9.4 mil. Non-fund-based working capital limits migrated to non-cooperating category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 26, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Kerala-based Saraf Trading Corporation was founded by V.G. Saraf in 1948 and incorporated in 1994. It is engaged in the processing, blending and trading of packaged tea under the brand, Suntips. SHIVAM WOOD: Ind-Ra Moves 'B+' LT Issuer Rating to Non-Cooperating ------------------------------------------------------------------ India Ratings and Research (Ind-Ra) has migrated Shivam Wood Works' 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: -- INR 46 mil. Fund-based facilities migrated to non-cooperating category with IND B+ (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; and -- INR 200 mil. Non-fund-based facilities migrated to non- cooperating category with IND A4 (ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on March 20, 2020. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Shivam Wood Works was incorporated in 1999 as partnership firm and is engaged in the trading of timber in Trichy, Tamil Nadu. The firm was founded by Ramesh N Patel. SIDDHESHWAR CONSTRACTION: CRISIL Cuts Rating on INR8cr Loan to D ---------------------------------------------------------------- CRISIL Ratings has downgraded its rating on the long-term bank facilities of Siddheshwar Constraction Company (SCC) to 'CRISIL D' from 'CRISIL B/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft Facility 8 CRISIL D (Downgraded from 'CRISIL B/Stable') The rating downgrade reflects the overdue in the cash credit account beyond 60 days between January 2021 and March 2021 and also there has been delays in servicing of interest on GECL in the last three months. The rating continues to reflect SCC's susceptibility to the tender-based nature of government projects and average financial profile. These weaknesses are partially offset by the extensive industry experience of the partners. Key Rating Drivers & Detailed Description Weakness: * Overdue in cash credit and delays in servicing of interest: SSC has availed GECL loan amount of INR1.40 crore and WCDL loan INR0.70 crore from the Bank of Baroda Under Covid'19 scheme. There has been instances of delays in servicing the interest obligation by management over the past few months. Furthermore, there was Overdue in the Cash credit account for the duration of January 2021 to March 2021. * Susceptibility to tender-based nature of government projects: SCC's business profile is constrained by its highly volatile scale of operations, as reflected in revenue of INR3-9 crore in the three fiscals through 2020, on account of the revenue being largely dependent on government projects. The management is involved in dam construction and sand mining projects, which are largely dependent on government regulations. However, the transport business will provide the firm with revenue stability over the medium term. * Average financial risk profile: Total outside liabilities to adjusted networth ratio was at 4.53 times as on March 31, 2020. Further, debt protection metrics average, with interest coverage and net cash accrual to total debt ratios at 1.69 times and 0.06 time, respectively, in fiscal 2020. Strength: * Extensive industry experience of the partners: The partners have an experience of over a decade in the civil construction industry. This has given them an understanding of the dynamics of the market, and enabled them to establish strong relationships with suppliers and customers. Liquidity: Poor Liquidity is likely to remain under pressure over the medium term, mainly due to large working capital requirement. Bank limit utilisation is fully utilised in the 12 months through March 2021. Rating Sensitivity factors Upward factors * Track record of timely payment of interest and regularisation of cash credit for more than three months. * Improvement in scale of operations along with profitability. SCC was established in 2008 as a partnership firm and is owned and managed by Mr. Bipindendra Yadav and Mr. Mukesh Sharma. The firm is located in Jhansi, Madhya Pradesh. SCC is engaged in civil construction works through sub contract, sand mining, and transport businesses. SONAC: CRISIL Keeps D Debt Ratings in Not Cooperating Category -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Sonac continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 10 CRISIL D (Issuer Not Cooperating) Open Cash Credit 5 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with Sonac for obtaining information through letters and emails dated September 28, 2020 and March 17, 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 Sonac, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on Sonac is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of Sonac continues to be 'CRISIL D Issuer Not Cooperating'. Established in 2015 as a partnership firm, Sonac is engaged in shrimp feed manufacturing in Nellore (Andhra Pradesh). The firm is promoted and managed by Mrs .K Rama. VISHAL RICE: CRISIL Keeps B+ Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Vishal Rice Exports Private Limited (VREPL) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 2.50 CRISIL B+/Stable (Issuer Not Cooperating) Proposed Term Loan 0.31 CRISIL B+/Stable (Issuer Not Cooperating) Term Loan 1.19 CRISIL B+/Stable (Issuer Not Cooperating) Warehouse Receipts 10.00 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with VREPL for obtaining information through letters and emails dated September 28, 2020 and March 17, 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 VREPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on VREPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of VREPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Incorporated in 2012, VREPL is engaged in the milling and sorting of 1121 PUSA basmati rice at its facility situated in Tulewal near Patiala (Punjab) with an installed capacity of 4 tonne per hour, utilised at 75%. VTJ SEA: CRISIL Keeps D Debt Ratings in Not Cooperating Category ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of VTJ Sea Foods continue to be 'CRISIL D/CRISIL D Issuer not cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 4.00 CRISIL D (Issuer Not under Letter Cooperating) of Credit Packing Credit 4.25 CRISIL D (Issuer Not Cooperating) Proposed Long Term 4.25 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with VTJ for obtaining information through letters and emails dated September 28, 2020 and March 17, 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 VTJ, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on VTJ is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of VTJ continues to be 'CRISIL D/CRISIL D Issuer not cooperating'. Established in 2001 as a proprietorship firm, VTJ is engaged in processing and exporting of seafood products. Based out of Kochi (Kerala), the firm is promoted by Mr. Raju J Vayalat. ================= I N D O N E S I A ================= REASURANSI NASIONAL: Fitch Affirms 'BB+' IFS Rating, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed PT Reasuransi Nasional Indonesia's (NasionalRe) Insurer Financial Strength (IFS) Rating at 'BB+' (Moderately Weak). At the same time, Fitch Ratings Indonesia has affirmed the National IFS Rating at 'AA-(idn)'. The Outlooks are Stable. 'AA' National IFS Ratings denote a very strong capacity to meet policyholder obligations relative to all other obligations or issuers in the same country, across all industries and obligation types. KEY RATING DRIVERS The affirmations reflect the company's 'Strong' financial performance, 'Favourable' business profile and 'Moderately Weak' capitalisation. NasionalRe is one of Indonesia's largest reinsurers, with market share of 23% (2019: 31%) by total domestic reinsurance gross premiums in 2020. The fall in the market share was mainly due to tougher competition as a new competitor entered the market. Nonetheless, Fitch still views NasionalRe's business profile as 'Favourable' compared with that of all other reinsurance companies in Indonesia due to its leading business franchise, a business risk profile that is on a par with the sector and diverse business lines. Fitch sees NasionalRe's financial performance as 'Strong'. Underwriting performance has been sound, with a combined ratio of below 100% for the last three years. Its non-life combined ratio increased to 96% by end-2020 (2019: 91%) due to higher claims ratio while premiums stagnated. Fitch expects NasionalRe to keep its underwriting businesses stable, underpinned by its selective underwriting practices, premium growth and manageable claims. NasionalRe's regulatory risk-based capital ratio was 203% at end-2020 (2019: 207%), well above the 120% regulatory minimum. However, the absolute amount of its capitalisation is small compared with that of some major international reinsurers. NasionalRe's Fitch Prism Model score was 'Adequate' based on the end-2020 financials. Fitch also expects NasionalRe to improve its capital position to keep up with its business expansion and ensure sufficient capital buffers against adverse shocks. NasionalRe's investment mix is prudent and liquid, with cash and equivalents and fixed-income instruments accounting for around 90% of its invested assets at end-2020. Exposure to risky assets remained manageable relative to capitalisation. Fitch expects the company to maintain the proportion of equities in its portfolio in light of its prudent investment approach. The company uses mainly excess-of-loss treaties to mitigate catastrophe exposure and regularly monitors its risk accumulation. The reinsurer also periodically collaborates with external brokers to assess its catastrophe exposure through various modelling tools. Its retrocession is adequate to cover its aggregate probable maximum loss for a return period of 250 years. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: IFS and National IFS Ratings: -- Sustained improvement in NasionalRe's capitalisation, with its regulatory risk-based capital ratio consistently above 200%. -- Maintenance of NasionalRe's business profile, including market position and further diversification. -- Maintaining operating performance, with a non-life combined ratio consistently below 93%. Factors that could, individually or collectively, lead to negative rating action/downgrade: IFS and National IFS Ratings: -- Significant deterioration in capitalisation, with a regulatory risk-based capital ratio persistently below 160%. -- A weakening business profile in terms of market franchise and operating scale. -- Significant deterioration in operating performance, with a non-life combined ratio above 105% over a prolonged period. 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. ESG CONSIDERATIONS NasionalRe has an ESG Relevance Score of 4 for exposure to environmental impact because most of company's premium income is from the domestic market, which has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. Indonesia is geographically widespread and faces multiple hazards, including flooding, earthquakes, landslides, tsunamis and volcanoes. 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 ========= TOSHIBA CORP: Says CVC Buyout Offer Has Stalled ----------------------------------------------- Takashi Mochizuki and Yuki Furukawa at Bloomberg News report that Toshiba Corp. shares tumbled after the Japanese company said a potential buyout offer from CVC Capital Partners has stalled. Toshiba revealed a preliminary approach from CVC in early April, which sent its stock soaring. Just days later, the company's board urged caution over the discussions, warning the proposal may not lead to a transaction, Bloomberg relates. In the latest chapter of the convoluted drama, Toshiba revealed it had received a letter from CVC on April 19, but it included "no specific and detailed information capable of detailed evaluation," Bloomberg relays. "It merely stated that CVC would step aside to await our guidance as to whether a privatization of Toshiba would suit management's and the Board of Directors' strategic objectives," the statement, as cited by Bloomberg, said. "As this preliminary proposal lacks the required information, the Board has concluded it is not possible to evaluate it," it said. Bloomberg says the disclosure is yet another setback for any potential buyout of the Japanese company, which also saw the resignation of its chief executive officer earlier this month. Nobuaki Kurumatani, who had previously worked at CVC, stepped down after he suffered a sharp drop in support from Toshiba employees and executives. It's not clear whether other reported bidders will proceed after CVC, the report notes. After the firm's initial approach, private equity firm KKR & Co. and Canadian investment giant Brookfield Asset Management Inc. began exploring potential offers, Bloomberg News reported. Bain Capital has entered into discussions with Japanese banks, including units of Mizuho Financial Group Inc. and Sumitomo Mitsui Financial Group Inc., to secure funding for a potential bid, Reuters reported on April 21, Bloomberg relays. Bloomberg adds that Satoshi Tsunakawa, who took over as CEO this month, offered reassurances that Toshiba would remain a strong Japanese company and invest in research and development. His comments appeared aimed at reassuring employees and business partners in the wake of the CVC offer. About Toshiba Corp. Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- manufactures and markets electrical and electronic products. The Company's products include digital products such as PCs and televisions, NAND flash memories, and system LSIs (large-scale integrated), as well as social infrastructures such as power generators, medical equipment, and home appliances. As reported in the Troubled Company Reporter-Asia Pacific on March 26, 2021, S&P Global Ratings has raised by one notch to 'BB+' its long-term issuer credit ratings on Japan-based capital goods and diversified electronics company Toshiba Corp. At the same time, S&P affirmed its 'B' short-term issuer credit and commercial paper program ratings. The outlook on the long-term issuer credit rating is stable. ===================== P H I L I P P I N E S ===================== PALM TREE: Placed Under PDIC Receivership ----------------------------------------- The Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) prohibited Palm Tree Bank, Inc. from doing business in the Philippines through MB Resolution No. 482.A dated April 22, 2021 which also directed the Philippine Deposit Insurance Corporation (PDIC), as Receiver, to proceed with the takeover and liquidation of the bank. The PDIC took over the bank on April 23, 2021. For the safety of the bank clients and local residents, the PDIC field personnel complied with the health, quarantine and travel protocols in accordance with Resolution No. 98-A issued by the Inter-Agency Task Force for the Emerging Infectious Disease (IATF). The same Resolution also authorized the PDIC personnel to travel on official business unimpeded to ensure that the PDIC is able to fulfill its mandates under the law. Palm Tree Bank, Inc. is a two-unit rural bank with Head Office located at Door #5 Global Agro Bldg., Kolambog, Brgy. Lapasan, Cagayan de Oro City (Capital), Misamis Oriental. Its lone branch, Cotabato City Branch, is located at EC Tanghal Bldg., No. 5 Don Roman Vilo St., Brgy. Poblacion VI, Cotabato City. Latest available records show that as of Dec. 31, 2020, Palm Tree Bank, Inc. has 1,716 deposit accounts with total deposit liabilities of PHP23.2 million, of which 95.8% or PHP22.3 million are insured deposits. The PDIC assured depositors that all valid deposits and claims will be paid up to the maximum deposit insurance coverage of PHP500,000.00 per depositor. Individual account holders of valid deposits with balances of PHP100,000.00 and below, and who have no outstanding obligations nor have not acted as co-makers of obligations with Palm Tree Bank, Inc., are not required to file deposit insurance claims. These individual depositors must ensure that they have complete and updated addresses with the bank. Depositors may update their addresses by submitting Mailing Address Update Forms (MAUF) until May 7, 2021, either through the dropbox available at the bank premises, or by sending a scanned copy of said Form and valid ID to email address, palmtree-pad@pdic.gov.ph. MAUF will be made available at the bank premises or may be downloaded from the PDIC website at www.pdic.gov.ph. Insurance payments for valid deposits with balances of PHP100,000.00 and below will be made through postal money order and targeted to be sent via mail starting on May 27, 2021. For business entities and all other depositors who are required to file claims for insured deposit, receiving of claims is targeted to start by June 7, 2021. Details will be announced through the PDIC website www.pdic.gov.ph, and PDIC's official Facebook page, www.facebook.com/OfficialPDIC. Borrowers are likewise reminded to continue paying their loan obligations with the closed Palm Tree Bank, Inc. and to transact only with designated PDIC representatives. The procedures for settlement of loan obligations are available in the PDIC website. For more information on the requirements and procedures for filing deposit insurance claims and settlement of loan obligations, depositors and borrowers of the bank are enjoined to attend the virtual Depositors-Borrowers' Forum scheduled on May 25, 2021. Details of the Forum will also be announced in the PDIC website and Facebook page. As provided for by the PDIC Charter, the PDIC shall likewise accept Letters of Intent from interested banks and non-bank institutions for possible purchase of assets and assumption of liabilities (P&A) as a mode of liquidating Palm Tree Bank, Inc. Letters of intent should be submitted within 60 days from takeover date subject to compliance with the requirements prescribed under the Guidelines in Pre-qualifying Proponents and Evaluating the Proposals for Purchase of Assets and Assumption of Liabilities Mode of Liquidating Closed Banks which can be accessed in the PDIC website. To ensure the safety of all concerned and observance of health protocols, all clients of the bank may communicate with PDIC through any of the following modes: Public Assistance Hotline during office hours at (02) 8841-4141, Toll-Free Hotline at 1-800-1-888-PDIC (7342) during office hours for those outside Metro Manila, e-mail to palmtree-pad@pdic.gov.ph or Facebook private message. In view of the strict health protocols, visits to the PDIC will be on appointment basis only. Appointment schedule may be secured through telephone, email or Facebook private message. ================= S I N G A P O R E ================= ASIA TUNNELLING: Court to Hear Wind-Up Petition on May 7 -------------------------------------------------------- A petition to wind up the operations of Asia Tunnelling & Construction Pte Ltd will be heard before the High Court of Singapore on May 7, 2021, at 10:00 a.m. DBS Bank Ltd filed the petition against the company on April 15, 2021. The Petitioner's solicitors are: Rajah & Tann Singapore LLP 9 Straits View #06-07 Marina One West Tower Singapore 018937 LOTUS-GESAR CAPITAL: Court to Hear Wind-Up Petition on May 7 ------------------------------------------------------------ A petition to wind up the operations of Lotus-Gesar Capital Pte Ltd will be heard before the High Court of Singapore on May 7, 2021, at 10:00 a.m. FFD Financing For Development SÀRL filed the petition against the company on April 13, 2021. The Petitioner's solicitors are: Mahmood Gaznavi Chambers LLC 111 North Bridge Road #11-02 Peninsula Plaza Singapore 179098 ===================== S O U T H K O R E A ===================== SSANGYONG MOTOR: Seeks to Cut 10 Executive Jobs Amid Receivership ----------------------------------------------------------------- Yonhap News Agency reports that SsangYong Motor is seeking to cut some 10 executive jobs as part of its restructuring efforts after being put under court receivership, an industry source said April 25. SsangYong Motor has been in the debt-rescheduling process since April 15 as its Indian parent Mahindra Mahindra has failed to attract an investor amid the prolonged COVID-19 pandemic and worsening financial status, Yonhap says. According to the report, the source said SsangYong Motor has been considering cutting about 30 percent of its 33 executive positions. However, the move is expected to face backlash from the automaker's labor union, which has expressed concerns that such restructuring could lead to another cut in jobs, the report states. It is the second time for SsangYong Motor to be under court receivership after undergoing the same process a decade ago, Yonhap notes. Court receivership is one step short of bankruptcy in South Korea's legal system. In receivership, the court will decide whether and how to revive the company. About Ssangyong Motor Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co. Ltd. engages in the manufacture and sale of automobiles. The Company mainly manufactures and sells recreational vehicles (RVs), sports utility vehicles (SUVs), multi-purpose vehicles (CDVs) and passenger cars under the brand name of rexton sports, korando, korando sports, korando turismo, tivoli, tivoli air and others. The Company also provides automobile parts. The Company distributes its products within domestic market and to overseas markets. Mahindra acquired a 70% stake in SsangYong for KRW523 billion in 2011 and now holds a 74.65% stake in the carmaker. SsangYong Motor Co. on Dec. 21, 2020, filed for court receivership as it struggles with snowballing debts amid the COVID-19 pandemic, according to Yonhap News Agency. The decision comes after SsangYong Motor failed to pay KRW60 billion (US$54.8 million) worth of debts to its three creditor banks. On April 15, 2021, SsangYong Motor Co. was placed under court receivership as its Indian parent Mahindra & Mahindra Ltd. failed to attract an investor amid the prolonged COVID-19 pandemic and its financial status is further worsening. Under court receivership, SsangYong's survival depends on whether there will be a new investor to acquire a streamlined SsangYong after debt settlement and other restructuring efforts, Yonhap said. ============= V I E T N A M ============= BIM LAND: Fitch Assigns B Rating on Proposed USD Unsec. Notes ------------------------------------------------------------- Fitch Ratings has assigned Vietnamese property developer BIM Land Joint Stock Company's (BIML; B/Stable) proposed US dollar-denominated unsecured unsubordinated notes a rating of 'B' with a Recovery Rating of 'RR4'. The proposed notes will be issued by BIML and guaranteed by most of its subsidiaries. The proposed notes are rated at the same level as BIML's Issuer Default Rating (IDR), as they constitute its direct unsubordinated unsecured obligations. Proceeds will be used for general corporate purposes, including financing existing and prospective projects. BIML's rating is driven by its record as a property developer in several high-growth, tourism-led regions in Vietnam, counterbalanced by the cyclical demand for its tourism-led investment products, such as condotels and rental villas, compared with residential property. The rating therefore incorporates BIML's smaller residential contracted sales than those of higher-rated peers. These risks are mitigated by the company's healthy balance sheet. KEY RATING DRIVERS Significant Tourism-Centric Exposure: Fitch expects 50%-60% of BIML's contracted sales over the next few years to stem from tourism-led investment products, such as condotels and rental villas. Contracted sales fell by 61% to VND3.8 trillion in 2020 - a sharper fall than for most international peers in residential housing - as BIML paused new launches amid Covid-19 social distancing and demand uncertainty. Contracted Sales to Improve: Project launches resumed in 4Q20, driving VND1.7 trillion in sales for the quarter and VND800 billion in 1Q21. Fitch expect attributable contracted sales (excluding minorities' share) to recover to VND7.5 trillion in 2021 on improving demand and a solid project launch pipeline. However, demand may falter in the medium-term if international tourist arrivals remain weak, as healthy domestic tourism does not necessarily support higher occupancy and rental rates for the high-end condotels and rental villas that BIML sells. Concentrated Portfolio: BIML's contracted sales originate in the city of Ha Long in the north-eastern province of Quang Ning, two hours' drive from the capital, Ha Noi, and on Phu Quoc island in the southern province of Kien Giang. BIML's new project in Vinh Phuc, around an hour's drive from Ha Noi, should contribute to contracted sales from 2022, improving diversification. Its Ha Long township offers both residential and tourism products, amid strong economic growth and industrialisation of Quang Ning province. Phu Quoc is still focused on tourism products, but the recent approval of its "island city" status should support a rising mix of residential sales. Robust Economic Prospects: Fitch believes BIML's contracted sales will benefit from Vietnam's solid medium-term economic growth, underpinned by strong foreign direct investment inflows feeding an expanding manufacturing economy and a strong demographic profile. Fitch expects GDP to rise by 6.5% in 2021 as exports bounce back amid a normalisation in global demand. Pandemic Management; Trade Diversion Benefits: The country's GDP rose by 2.9% in 2020, despite the uncertain environment. The growth was driven by a well-managed pandemic locally, foreign direct investment and trade diversion from rising costs in China and the US-China trade war, as well as government incentives and subsidies, including low interest rates. Demand Risks Higher than Peers': Vietnam's per capita GDP is lower, and its middle class is much smaller, than in countries such as China and Indonesia, where most of BIML's rated peers are based. This could leave demand for BIML's property more susceptible to economic downturns than for regional peers. Healthy Balance Sheet: Fitch expects BIML's leverage, measured as net debt/adjusted inventory, to rise to 25%-30% over the next 24 months (2020: 9%) on increased capex. However, this is still lower than that of rated peers and counterbalances the cyclicality of its tourism-led products. Fitch expects cash flow from operations to partially fund its large capex plan of around 25% of revenue. BIML has flexibility to slow capex, which relates to the recurring income generating properties within its mixed-use projects, if contracted sales do not hold up. BIML reports its undeveloped land bank at fair market value, in line with International Financial Reporting Standards. However, Fitch reduces the fair value using a two-year average of BIML's property-sales gross profit margin to arrive at a net debt/adjusted inventory ratio based on the carrying cost of land, which is more comparable with that of regional peers. Limited Recurring Cash Flow: Fitch expects BIML's recurring EBITDA to hover at around VND200 billion in 2021 and VND300 billion in 2022, before rising to around VND500 billion in 2023-2024, as the company plans to build more hotels and condotels, combined with a gradual increase in international tourists. Fitch expects property development EBITDA to hover at around VND3.5 trillion-4.0 trillion over the same period. The occupancy rate of BIML's hotels fell to 29% in 2020 (2019: 51%), but Fitch expects a recovery to 35% in 2021 and 45% in 2022. Strong Linkages with Parent: BIML has strong operational ties with its weaker parent, BIM Group Company Limited. Therefore, Fitch rates BIML based on the parent's consolidated profile, excluding its ringfenced and self-sufficient renewable energy business. BIML is wholly owned by BIM Group, which is owned by the chairman, Mr Doan. The Doan family hold key management positions in all group companies. The group has interests in food processing and health clubs, but these are small in scale with low leverage and therefore do not diminish BIML's credit profile. DERIVATION SUMMARY BIML's ratings are comparable with those of Indonesia's PT Bumi Serpong Damai Tbk (BSD, BB-/Stable), PT Ciputra Development Tbk (CTRA, B+/Stable), PT Lippo Karawaci TBK (Lippo, B-/Stable), PT Kawasan Industri Jababeka Tbk (KIJA, B-/Stable), and China's Modern Land (China) Co., Limited (B/Stable). Fitch believes Vietnam's property market has a similar competitive intensity to Indonesia's market, being highly fragmented with multiple players of a similar size in each region or niche segment. However, Vietnam is at an earlier stage of its economic development, with lower per capita income and a smaller middle class, although it is likely to see stronger economic growth in the medium term. BSD and CTRA are rated higher than BIML because of their stronger business risk profile with larger contracted sales scale, a focus on residential products, and operations in more regions in Indonesia. Their housing products are more diverse across price-points and end-customers, allowing them to shift their product mix to cater to varying demand even during downturns. Both also have larger recurring income portfolios that provide more financial flexibility and a degree of downside protection to debt-servicing obligations if contracted sales decline. BIML's leverage is lower than CTRA's and similar to that of BSD, although this alone is not sufficient to offset its weaker business risk profile. BSD is rated higher than CTRA on account of its larger contracted sales scale. Lippo and KIJA are rated lower than BIML on account of their weaker business risk profiles, as reflected in smaller contracted sales scale and higher leverage. KIJA's rating is underpinned by the considerable recurring cash flow stemming from its power plant, dry port and other non-development sources, which cover its annual interest expense by 0.8-1.0x. This mitigates the risks associated with its small scale and the cyclicality of its contracted sales of mostly industrial land. Lippo's rating reflects Fitch's view that its cash on hand is sufficient to meet its operating and debt service costs through to end-2022, although it may need to resort to asset sales to support liquidity thereafter. BIML's contracted scale is much smaller than that of Modern Land, reflecting narrower project and geographical diversity. Modern Land caters for affordable homes and somewhat speculative investment demand in lower-tier cities in China, although it has no exposure to tourism-led developments. Furthermore, China's economy is at a more developed stage than that of Vietnam and is home to a substantially larger middle class, which supports more discretionary spending across economic cycles. Therefore, Fitch regards Modern Land's business profile as stronger than that of BIML, but BIML's much sturdier financial profile compensates for the higher business risk, resulting in both companies being rated at the same level. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Attributable contracted sales of around VND7.5 trillion in 2021-2022; -- Cash flow from operations of VND216 billion in 2021 and VND650 billion in 2022, which is net of construction costs on for sale projects, interest, and tax, and a one-off payment on additional land bank in BIML's Ha Long Marina township in 2021; -- Capex of VND2 trillion in 2021 and VND2.2 trillion in 2022 on recurring-income projects; -- One-off investments of VND1.2 trillion in 2021 on the balance payment for acquiring the Vinh Phuc project; -- Dividends of around VND500 billion in 2021-2022. Key Recovery Rating Assumptions -- Fitch assumes BIML will be liquidated in a bankruptcy rather than continue as a going concern, because it is an asset trading company; -- Fitch assumes zero recovery value on cash and cash equivalents in arriving at the liquidation value; -- To estimate the liquidation value, Fitch assumes a 75% advance rate against account receivables, and a 50% advance rate against fixed assets and adjusted inventory. this includes the value of inventory and investment properties with land at estimated cost, net of customer advances; -- Fitch uses an implied cost of land by reducing reported fair value by the average gross profit margin of BIML's property sales over the last two years; -- Fitch deducts 10% of the liquidation value on account of administrative costs. Based on the adjusted liquidation value after administrative claims, Fitch estimates the Recovery Rating of the proposed senior unsecured bonds at 100%, which corresponds to a Recovery Rating of 'RR1'. However, Fitch has rated the proposed bonds 'B'/'RR4' because Vietnam falls into Group D of creditor-friendliness under Fitch's Country-Specific Treatment of Recovery Ratings Criteria, and instrument ratings of issuers with assets in this group are subject to a soft cap at the company's IDR. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Sustained attributable contracted sales, excluding tourism-led investment products such as condotel and rental villas, of more than VND6 trillion; -- Net debt/adjusted inventory (calculated using implied land bank cost) sustained below 40%. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Attributable contracted sales (including condotels and rental villas) falling below VND4 trillion for a sustained period; -- Net debt/adjusted inventory (calculated using implied land bank cost) of above 45% 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: BIML had VND2.5 trillion of cash and equivalents at end-2020 and VND2.6 trillion in committed bank lines, of which VND2.0 trillion consisted of pre-approved construction loans that could be drawn only to reimburse construction costs incurred by BIML or contractors. The balance VND600 billion consisted of undrawn working capital lines subject to a 12-month renewal cycle. The company issued a VND1 trillion domestic bond in March 2021, further supporting its 2021 liquidity. Fitch estimates that BIML's liquidity sources should sufficiently cover Fitch-projected negative free cash flow of VND3.6 trillion, which includes the balance acquisition cost of the Vinh Phuc project and an estimated VND500 billion of discretionary dividends, as well as VND980 billion debt maturing in 2021. BIML has cultivated diversified onshore banking relationships and has demonstrated some access to foreign-currency loans from offshore lenders. Its debt was 43% denominated in US dollars as of end-2020. This exposes the company to foreign-exchange risk because its cash flow is denominated in Vietnamese dong. The near-term currency risk is mitigated by Vietnam's strong external finances, allowing the local currency to remain broadly stable against the US dollar. SUMMARY OF FINANCIAL ADJUSTMENTS BIML reports undeveloped land bank at fair market value in line with International Financial Reporting Standards. However, Fitch reduces the fair value using BIML's average gross profit margin on property sales over a two-year period to arrive at a net debt/adjusted inventory ratio based on the carrying cost of land, which is more comparable with that of regional peers. HOME CREDIT: Fitch Alters Outlook on 'B' LT IDR to Stable --------------------------------------------------------- Fitch Ratings has affirmed Home Credit Vietnam Finance Company Limited's (HCV) Long-Term Issuer Default Rating (IDR) at 'B', and revised the Outlook to Stable from Negative. The Short-Term IDR has been affirmed at 'B'. The revision in the rating Outlook reflects Fitch's expectation of reduced downside risk to the operating environment and HCV's credit profile from the coronavirus pandemic. Vietnam's economy has been more resilient than most other markets in the Asia-Pacific as the local authorities have had greater success in containing Covid-19. It was one of the few economies in the region to report GDP growth in 2020, albeit at a lower pace of 2.9%. Fitch expects sustained export growth and a gradual recovery in the global economy to underpin GDP growth of about 7% per year in 2021 and 2022. KEY RATING DRIVERS The ratings reflect HCV's franchise as one of the major consumer finance companies in Vietnam, with links to multinational consumer lender the Home Credit group. The ratings also reflect HCV's niche exposure to relatively cyclical unsecured consumer loans, as well as its operations in a developing market where the regulatory framework and business models continue to evolve. Fitch expects these features to result in a less predictable operating environment and greater asset quality and earnings volatility through a credit cycle relative to higher-rated entities. Unsecured cash loans accounted for 63% of HCV's gross loans at end-2020, while consumer durable loans, motorcycle loans and credit card receivables comprised the remainder (26%, 9% and 2% respectively). HCV has demonstrated an acceptable record in managing the asset-quality risks in its portfolio, with the impaired loan ratio adequately contained at 2.5% at end-2020, though higher than the 1.9% at end-2019. Credit costs rose to 7.5% of gross loans in 2020, from 5.1% in 2019, but HCV's wide net interest margin helps to compensate for the risk. The company's impairment expenses typically exceed its reported impaired loan ratios due to a relatively short-tenor loan profile and prompt write-off policy. Profits declined amid lower volumes and a rise in impairment costs, but pre-tax earnings remained positive at 3.2% of average assets in 2020, down from 6.1% in 2019. Profitability had narrowed prior to the pandemic due to pressure from industry competition, but Fitch expects the company to maintain near-term risk-adjusted profitability broadly commensurate with the rating. Regulatory limits on cash-loan facilities are being phased in from January 2021. This will place pressure on HCV to shift its portfolio mix over the next few years. Not all cash loans would be subject to the cap, but the applicable loans amounted to close to 40% of HCV's gross loans at end-2020 compared to a cap of 30% by 1 January 2024. The company's plans to diversify its loan portfolio may be subject to execution risk due to uncertainties regarding market acceptance and risk calibration of new products, and competitor actions. However, the company has been successful in managing product innovation in the past, backed by the risk management know-how of the broader Home Credit group. Fitch views funding conditions in Vietnam as more unpredictable than in higher-rated jurisdictions, but HCV's credit profile is underpinned by its consistent liquidity management and acceptable funding diversity with access to borrowings from domestic and offshore banks, and local debt paper. Funding costs have been generally steady over the past year, and Fitch believes HCV's status as part of the Home Credit group gives it some advantages in securing funding from foreign banks. Meanwhile, HCV's leverage may rise as it grows, but Fitch expects its debt/tangible equity ratio (end-2020: 4.2x) to remain within Fitch's tolerance for its current rating. RATING SENSITIVITIES Factor that could, individually or collectively, lead to positive rating action/upgrade: -- HCV's ratings may be upgraded if it demonstrates greater business model stability with a more diverse, balanced product mix, or more entrenched franchise strengths that provide increased resilience against regulatory and competitive shifts. This is likely to be in combination with a more mature operating environment and a longer record of sustainable balance sheet growth, accompanied by moderate and generally stable asset quality, adequate capitalisation, liquidity and funding diversity, and steadier risk-adjusted profitability commensurate with its risks. Factor that could, individually or collectively, lead to negative rating action/downgrade: -- Fitch may take negative rating action in the event of aggressive balance-sheet growth, a material erosion in underwriting standards, or a rise in leverage to more than 6x on a sustained basis. Fitch may also take negative rating action if asset quality deteriorates sharply, leading to a significant reduction in profitability and capital impairment. 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. 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. ********* 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. 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