/raid1/www/Hosts/bankrupt/TCRAP_Public/210531.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, May 31, 2021, Vol. 24, No. 102
Headlines
A U S T R A L I A
BLUESTONE MORTGAGES: Fitch Places B Rating on Class F Tranche
FP TURBO 2019-1: Moody's Upgrades Class F Notes to Ba2 (sf)
JUSTKAPITAL FINANCING: Second Creditors' Meeting Set for June 4
PINDAN GROUP: Repayment for Creditors Still Unknown
C H I N A
CHINA SCE: Moody's Affirms B1 CFR, Alters Outlook to Positive
HILONG HOLDING: Moody's Ups CFR to Caa1 on Completed Debt Revamp
SUNRISE REAL ESTATE: Incurs $1.6 Million Net Loss in First Quarter
TD HOLDINGS: Delays Filing of First Quarter Form 10-Q
TIMES CHINA: Moody's Rates New Senior Unsecured USD Notes 'B1'
YANGO GROUP CO: Fitch Assigns B+ Rating to Proposed USD Green Bonds
I N D I A
3G TELECOM: Ind-Ra Keeps 'B+' LT Issuer Rating in Non-Cooperating
AMAR RICE: CRISIL Keeps B+ Debt Ratings in Not Cooperating
ANAND MINE: Ind-Ra Keeps 'D' LT Issuer Rating in Non-Cooperating
ANSHUMAN TRADING: Ind-Ra Keeps B+ Issuer Rating to Non-Cooperating
ARUN SPINNING: Ind-Ra Assigns B+ LT Issuer Rating, Outlook Stable
ARUNODAYA PRINT: Ind-Ra Keeps BB Issuer Rating in Non-Cooperating
ASTER PRIVATE: Ind-Ra Keeps 'D' Issuer Rating in Non-Cooperating
AVICHAL MULTITRADE: Ind-Ra Keeps B Issuer Rating in Non-Cooperating
BHOMIA BUTTONS: CRISIL Lowers Rating on INR15cr Loans to D
CLEANTEC INFRA: Ind-Ra Keeps BB+ Issuer Rating in Non-Cooperating
DURGA MARUTHI: CRISIL Lowers Rating on INR10.35cr Loan to D
ESSPAL INTERNATIONAL: Ind-Ra Assigns 'BB+' Bank Loan Rating
GMW PRIVATE: Ind-Ra Affirms 'BB-' LT Issuer Rating, Outlook Stable
HARSHNA NATURALS: CRISIL Keeps B- Debt Ratings in Not Cooperating
IDBI BANK: S&P Affirms Then Withdraws 'BB/B' ICRs
IL&FS TRANSPORTATION: Ind-Ra Affirms 'D' LT Issuer Rating
INDIRA PRIYADARSHINI: Ind-Ra Keeps 'D+' Rating in Non-Cooperating
JAMES & CO: Ind-Ra Assigns 'BB-' LT Issuer Rating, Outlook Stable
JAMES RETAIL: Ind-Ra Assigns BB- LT Issuer Rating, Outlook Stable
KAABA TRADING: CRISIL Keeps B Debt Rating in Not Cooperating
KP POLYOLEFIN: Ind-Ra Affirms 'BB+' Long-Term Issuer Rating
KURUNJI AGRO: CRISIL Keeps D Debt Ratings in Not Cooperating
KVK BIO: Ind-Ra Keeps 'D+' Term Loan Rating in Non-Cooperating
LANCO KONDAPALLI: CRISIL Keeps D Debt Ratings in Not Cooperating
LORD WHEELS: CRISIL Keeps B Debt Ratings in Not Cooperating
LOVE KUSH: CRISIL Keeps B Debt Ratings in Not Cooperating
LUCKNOW HEALTHCITY: CRISIL Keeps B+ Rating in Not Cooperating
M/S ATASHA: Ind-Ra Keeps 'BB' LT Issuer Rating in Non-Cooperating
MAHALAXMI BUS: Ind-Ra Affirms 'BB-' Issuer Rating, Outlook Stable
METENERE LIMITED: CRISIL Keeps D Debt Ratings in Not Cooperating
MONGA IRON: CRISIL Keeps D Debt Ratings in Not Cooperating
NATIONAL RICE: CRISIL Keeps D Debt Ratings in Not Cooperating
NILKANTH COTTON: CRISIL Keeps B+ Debt Ratings in Not Cooperating
POWAI CUBICLES: Insolvency Resolution Process Case Summary
PRAGATI EDUCATION: CRISIL Keeps B Debt Ratings in Not Cooperating
R.S. CORPORATION: Ind-Ra Keeps BB- Issuer Rating in Non-Cooperating
RADHA KRISHNA: CRISIL Keeps B Debt Rating in Not Cooperating
RAJDEEP TRADERS: CRISIL Reaffirms B+ Rating on INR5.0cr Loans
RAMSWAROOP MEMORIAL: Ind-Ra Keeps D Loan Rating in Non-Cooperating
RAVELS APPARELS: CRISIL Keeps D Debt Ratings in Not Cooperating
REVIVE CONSTRUCTION: CRISIL Reaffirms B+ Rating on INR37cr Loan
RUKMINI SILK: CRISIL Lowers Rating on INR12cr Loans to D
SAIBABA SOLVENT: Ind-Ra Keeps BB- Issuer Rating in Non-Cooperating
SAMALESWARI EDUCATION: CRISIL Keeps B- Ratings in Not Cooperating
SARE FACILITY: Insolvency Resolution Process Case Summary
SIKKO INDUSTRIES: Ind-Ra Keeps B+ Issuer Rating in Non-Cooperating
SINDHU CARGO: Ind-Ra Keeps BB+ LT Issuer Rating in Non-Cooperating
SOUTH EAST: Ind-Ra Keeps 'D' Bank Loan Rating in Non-Cooperating
SUKATA TRACTOR: Ind-Ra Keeps B+ Issuer Rating in Non-Cooperating
SUMERU PROCESSORS: Ind-Ra Keeps D Issuer Rating in Non-Cooperating
T G R PROJECTS: CRISIL Reaffirms B Rating on INR32cr Loans
TANVIRKUMAR & CO: CRISIL Reaffirms B+ Rating on INR14.6cr Loan
TERMINUS KG: Ind-Ra Assigns & Withdraws 'BB+' Term Loan Rating
UTTAMENERGY LIMITED: Ind-Ra Moves 'BB+' Rating to Non-Cooperating
VRV FOODS: Ind-Ra Moves 'D' LT Issuer Rating to Non-Cooperating
YAK GRANITE: CRISIL Keeps C Debt Ratings in Not Cooperating
ZERO MICROFINANCE: CRISIL Keeps B- Ratings in Not Cooperating
J A P A N
JAPAN: Pandemic-Related Bankruptcies Hit 1,500 Since Feb. 2020
N E W Z E A L A N D
DENTAL CARE: Nearly 2,000 Patients 'Ripped Off' After Collapse
S I N G A P O R E
BLVD HOLDING: Court Enters Wind-Up Order
EAGLE HOSPITALITY: Bid to Freeze Funds of Ex-Directors Denied
EAGLE HOSPITALITY: Delaware Judge Blasts Chapter 11 Fraud Claims
NAN YA MARITIME: Grant Thornton Appointed as Liquidators
PFP HOLDINGS: Creditors' Meeting Set for June 4
V I E T N A M
VIETNAM INTERNATIONAL: Moody's Affirms B1 LT Issuer Rating
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A U S T R A L I A
=================
BLUESTONE MORTGAGES: Fitch Places B Rating on Class F Tranche
-------------------------------------------------------------
Fitch Ratings has placed 29 Australian and New Zealand RMBS ratings
Under Criteria Observation (UCO) following the publication of its
APAC Residential Mortgage Rating Criteria on 25 May 2021.
All ratings that could incur rating changes as a result of the
application of updated criteria will first be placed on UCO under
Fitch's criteria implementation policies. The UCO designation
denotes that any potential rating changes are solely the result of
the criteria change and that the underlying fundamentals of the
RMBS transactions have not changed. The ratings themselves, and any
existing Rating Outlook status, will remain unchanged and
unaffected by the UCO.
Fitch will resolve the UCO status of all ratings within six
months.
DEBT RATING PRIOR
---- ------ -----
Progress 2014-2 Trust
C AU3FN0025706 LT AAsf Under Criteria Observation AAsf
Triton Trust No.9 NTX Warehouse Series 2018-1
A LT AAsf Under Criteria Observation AAsf
D LT BBsf Under Criteria Observation BBsf
E LT B+sf Under Criteria Observation B+sf
Avanti RMBS 2019-1 Trust
C NZAVAD1010R5 LT A+sf Under Criteria Observation A+sf
D NZAVAD1011R3 LT A-sf Under Criteria Observation A-sf
E NZAVAD1012R1 LT A-sf Under Criteria Observation A-sf
Basecorp RMBS 2021-1 Trust
B NZBASD1003R4 LT AAsf Under Criteria Observation AAsf
C NZBASD1004R2 LT A+sf Under Criteria Observation A+sf
D NZBASD1005R9 LT A-sf Under Criteria Observation A-sf
Light Trust No. 4
B1 AU3FN0017059 LT AA-sf Under Criteria Observation AA-sf
Five Star 2019-1 Trust
C AU3FN0052288 LT AA-sf Under Criteria Observation AA-sf
D AU3FN0052296 LT BBB+sf Under Criteria Observation BBB+sf
E AU3FN0052304 LT BBB-sf Under Criteria Observation BBB-sf
F AU3FN0052312 LT BB+sf Under Criteria Observation BB+sf
Five Star 2017-1 Trust
D AU3FN0038162 LT AA-sf Under Criteria Observation AA-sf
National RMBS Trust 2015-1
B AU3FN0026506 LT AA+sf Under Criteria Observation AA+sf
Avanti RMBS 2020-1 Trust
C NZAVAD1016R2 LT AAsf Under Criteria Observation AAsf
E NZAVAD1018R8 LT BBBsf Under Criteria Observation BBBsf
F NZAVAD1019R6 LT BBB-sf Under Criteria Observation BBB-sf
ConQuest 2014-2 Trust
B2 AU3FN0026118 LT BBB+sf Under Criteria Observation BBB+sf
Bluestone CBA Warehouse Trust 2015
A LT AAAsf Under Criteria Observation AAAsf
B LT AAsf Under Criteria Observation AAsf
C LT Asf Under Criteria Observation Asf
WB Trust 2014-1
AB AU3FN0025169 LT AAAsf Under Criteria Observation AAAsf
Bluestone Mortgages Warehouse Trust
C LT Asf Under Criteria Observation Asf
D LT BBBsf Under Criteria Observation BBBsf
E LT BBsf Under Criteria Observation BBsf
F LT Bsf Under Criteria Observation Bsf
KEY RATING DRIVERS
Changes to Asset Analysis Have Varying Impact Across Rating
Categories: The APAC Residential Mortgage Rating Criteria published
on 25 May 2021 was updated to incorporate methodology applied by
Fitch in Europe, the UK and Latin America for RMBS transactions, as
well as updating the assumption values used in the asset analysis
based on updated historical analysis of the relevant market and
transaction history. Generally, the sum of these amendments results
in the 'AAAsf' portfolio loss levels remaining relatively
unchanged, although specific transactions may vary based on the
portfolio composition, while the 'Bsf' portfolio loss is lower,
reflecting historical mortgage performance in Australia and New
Zealand. These changes provide potential rating upgrades to
tranches rated 'AAsf' and below, and the affected tranches have
been placed on UCO.
Changes to Tail Risk Tests Have Varying Impact on Transactions: The
tail risk tests have been simplified in the criteria with only the
large obligor concentration tests applicable to all transactions
and the revolving pool concentration tests applicable to revolving
transactions, in addition to the large obligor concentration tests.
The removal of the "adverse selection and small loan count tests"
have provided potential rating upgrades to tranches rated 'AA+sf'
that were previously constrained by this test, while the removal of
the "tranche thickness test" has provided potential rating upgrades
to tranches rated investment grade that were previously constrained
by this test. Furthermore, as a result of the lower portfolio loss
below 'AAAsf', the large obligor concentration test thresholds have
decreased, providing potential rating upgrades for tranches rated
below 'AAAsf' that were previously constrained by this test.
Alternatively, the amendment to the calculation of the revolving
pool concentration tests has increased the concentration threshold
across all rating categories for revolving transactions, with
potential rating downgrades on tranches in revolving transactions
that had no or limited buffer above the previous revolving pool
concentration thresholds. All tranches affected by the change in
tail risk tests have been placed on UCO.
Changes to Cash Flow Assumptions Affect Excess Spread: Reduction in
the senior expense floors applied in cash flow modelling have
provided potential rating upgrades to seasoned RMBS tranches that
were sensitive to expenses in the tail of the transaction. Changes
to the benefit applied to the threshold rate, higher senior
expenses and lengthening of foreclosure timing above 'Bsf' in the
cash flow model have provided potential rating downgrades to
transactions that have lower levels of excess spread, specifically
revolving transactions where the minimum portfolio yield covenant
is applied in cash flow modelling. All tranches that are affected
by the changes in the cash flow assumptions have been placed on
UCO.
The key rating drivers listed in the applicable sector criteria,
but not mentioned and are not material to this rating action.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- The key rating sensitivity for the resolution of the UCO
status will be Fitch's completion of its analytical work
reviewing the ratings under its new criteria as set out below.
All RMBS ratings placed on UCO are expected to be reviewed
within six months of the publication of the criteria under
Fitch's policies. Fitch expects to start taking criteria
related rating actions in the third quarter of 2021.
-- Existing rating sensitivities as defined in the latest rating
action commentaries on each transaction continue to apply.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Please see above.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Structured Finance
transactions have a best-case rating upgrade scenario (defined as
the 99th percentile of rating transitions, measured in a positive
direction) of seven notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of seven notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings
are based on historical performance.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has not conducted any checks on the consistency and
plausibility of the information it has received about the
performance of the asset pools and the transactions. Fitch has not
reviewed the results of any third-party assessment of the asset
portfolio information or conducted a review of origination files as
part of its ongoing monitoring.
Overall, Fitch's assessment of the information relied upon for the
agency's rating analysis, according to its applicable rating
methodologies, indicates that it is adequately reliable.
FP TURBO 2019-1: Moody's Upgrades Class F Notes to Ba2 (sf)
-----------------------------------------------------------
Moody's Investors Service has upgraded the ratings on five classes
of notes issued by FP Turbo Series 2019-1 Trust.
The affected ratings are as follows:
Issuer: FP Turbo Series 2019-1 Trust
Class B Notes, Upgraded to Aaa (sf); previously on Oct 19, 2020
Upgraded to Aa1 (sf)
Class C Notes, Upgraded to Aa2 (sf); previously on Oct 19, 2020
Upgraded to A1 (sf)
Class D Notes, Upgraded to Aa3 (sf); previously on Oct 19, 2020
Upgraded to A3 (sf)
Class E Notes, Upgraded to Baa1 (sf); previously on Dec 12, 2019
Definitive Rating Assigned Ba1 (sf)
Class F Notes, Upgraded to Ba2 (sf); previously on Dec 12, 2019
Definitive Rating Assigned B1 (sf)
RATINGS RATIONALE
The upgrades were prompted by an increase in note subordination
available for the affected notes and the good performance of the
underlying collateral pool to date.
Sequential amortization of the notes from closing led to the
increase in note subordination.
Following the May 2021 payment date, the note subordination
available for the Class B, Class C and Class D Notes has increased
to 27.1%, 21.4% and 20.1%, respectively, from 20.4%, 16.1% and
15.1% at the last rating action for these notes in October 2020.
Note subordination available for the Class E and Class F Notes has
increased to 13.8%, and 8.8%, respectively, from 8.3%, and 5.3% at
closing.
As of April 2021, 0.6% of the outstanding pool was 30-plus day
delinquent, and 0.1% was 90-plus day delinquent. The portfolio has
incurred AUD13,018 of losses to date, which have been covered by
excess spread.
Based on the current portfolio characteristics, the observed pool
performance and the Australian economy macroeconomic outlook,
Moody's has decreased the mean lessee default rate assumption to
1.3% of the outstanding pool compared to 1.8% in October 2020 and
2.3% at closing.
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 corporate assets and small businesses from a gradual
and unbalanced recovery in Australian economic activity.
Moody's regard the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety.
FP Turbo Series 2019-1 Trust is an Australian cash securitisation
of operating, novated and finance leases extended to Australian
government and statutory corporations, corporates, small and
medium-sized businesses and their employees. The leases are secured
by passenger cars, commercial vehicles and equipment.
The transaction is supported by a liquidity facility in the amount
of 2.0% of the notes balance, which can cover approximately four
months of interest payments.
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
December 2020.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the ratings include (1)
performance of the underlying collateral that is better than
Moody's expectations, and (2) an increase in the notes' available
credit enhancement.
Factors that could lead to a downgrade of the ratings include (1)
performance of the underlying collateral that is worse than Moody's
expectations, (2) a decrease in the notes' available credit
enhancement, and (3) a deterioration in the credit quality of the
transaction counterparties.
JUSTKAPITAL FINANCING: Second Creditors' Meeting Set for June 4
---------------------------------------------------------------
A second meeting of creditors in the proceedings of JustKapital
Financing Pty Ltd has been set for June 4, 2021, at 10:00 a.m. at
the offices of JustKapital Financing, Level 16, 56 Pitt St, in
Sydney, NSW.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by June 3, 2021, at 4:00 p.m.
Martin Walsh of Walsh Recovery was appointed as administrator of
JustKapital Financing on April 30, 2021.
PINDAN GROUP: Repayment for Creditors Still Unknown
---------------------------------------------------
ABC News reports that it is too early to know whether Pindan
creditors will get anything out of the collapsed company, according
to its administrators.
All of Pindan's construction operations have ceased and more than
half the staff have been let go following the company's collapse
two weeks ago, ABC recalls.
According to ABC, EY lead administrator Sam Freeman said creditors
were owed AUD80 million and it was too early to say what
sub-contractors may receive.
"There's a lot of discussions that need to occur with contract
owners," the report quotes Mr. Freeman as saying. "There's asset
sales that need to occur, there's a large number of moving parts,
litigation considerations, so it really is too early to comment on
what a return to sub-contractors looks like.
Mr. Freeman estimated there were 1,300 to 1,400 creditors,
including employees, sub-contractors, shareholders, suppliers and
other contract owners.
"There will be some people significantly out of pocket, and that's
why at the (creditors') meeting today, there was a lot of emotion
in the room and understandably so."
He said there would not be a dividend in the "short term" and in
the absence of a deed of company arrangement, Pindan would go into
liquidation, the report relays.
ABC adds that Construction, Forestry, Mining and Energy Union
(CFMEU) WA state secretary Mick Buchan said it was unlikely Pindan
subcontractors would be paid what they were owed, and it was an
indictment of the industry.
"They're owed hundreds and hundreds of thousands of dollars
collectively and there's limited places to go," ABC quotes Mr.
Buchan as saying.
ABC says Mr. Buchan called on Upper House MPs to amend legislation
to ensure subcontractors received better protections.
The next creditors' meeting will be held be no later than June 23,
the report notes.
Samuel John Freeman, Vincent Smith and Colby O Brien of Ernst &
Young were appointed as administrators of Pindan Group on May 18,
2021.
=========
C H I N A
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CHINA SCE: Moody's Affirms B1 CFR, Alters Outlook to Positive
-------------------------------------------------------------
Moody's Investors Service has changed the rating outlook on China
SCE Group Holdings Limited to positive from stable.
At the same time, Moody's has affirmed China SCE' B1 corporate
family rating and its B2 senior unsecured debt rating.
"The change in outlook to positive reflects our expectation that
China SCE will improve its debt leverage and continue to expand
over the next 12-18 months," says Danny Chan, a Moody's Assistant
Vice President and Analyst.
"At the same time, the rating affirmation reflects our expectation
that the company will maintain its financial discipline, good
liquidity and access to onshore and offshore capital markets while
growing its investment property portfolio over the next 12-18
months," adds Chan.
RATINGS RATIONALE
China SCE's B1 CFR reflects the company's long operating track
record, growing operating scale with diversified geography and
well-located land bank, as well as good liquidity and good access
to onshore and offshore funding.
At the same time, China SCE's CFR considers its funding needs and
execution risks associated with its fast expansion and growing
investment property portfolio, as well as its increased exposure to
joint ventures (JVs).
Moody's expects China SCE to continue increasing its contracted
sales to RMB115 billion-RMB120 billion in 2021 and RMB125
billion-RMB130 billion in 2022 after achieving 26% growth to
RMB101.5 billion in 2020. The projected sales growth will be driven
by China SCE's sizable and well-located land bank, as well as its
strong sales execution. This will also support the company's
liquidity and revenue growth.
Moody's forecasts China SCE's debt leverage -- as measured by
revenue/adjusted debt -- will improve and trend towards 70% over
the next 12-18 months after improving to 61% in 2020 from 43% in
2019. This is because the likely revenue growth, due to the
company's strong contracted sales over the past 2-3 years, will
more than offset the debt increase for its property development and
investment businesses, as well as growing financial guarantees to
JVs.
The improvement in debt leverage also reflects Moody's expectation
that China SCE will maintain financial discipline in managing its
expansion amid China's tightened credit environment.
However, China SCE's EBIT/interest coverage will stay at 2.5x-3.0x
over the same period, after strengthening to 2.9x in 2020 from 2.2x
in 2019. This is because EBIT will remain flat as revenue growth
will be largely offset by a likely margin decline, to around 21%
from 24% during the same period, due to increasing land costs and
restrictions on property selling prices in many of its key
markets.
China SCE's liquidity position remains good. The company's cash
balance of RMB23.4 billion as of the end of 2020 covered 169% of
its short-term debt. Such cash holdings, together with the
company's operating cash flow, will be sufficient to cover its
short-term debt and estimated committed land payments over the next
12-18 months.
The company's B2 senior unsecured debt rating is one notch lower
than the CFR, due to structural subordination risk. This risk
reflects the fact that the majority of claims are at the operating
subsidiaries and have priority over China SCE's senior unsecured
claims in a bankruptcy scenario. In addition, the holding company
lacks significant mitigating factors for structural subordination.
As a result, the likely recovery rate for claims at the holding
company will be lower.
In terms of environmental, social and governance (ESG) factors,
Moody's has considered the company's concentrated ownership by its
controlling shareholder, Mr. Wong Chiu Yeung, who held a 50.05%
stake as of December 31, 2020.
Moody's has also considered (1) the presence of three independent
nonexecutive directors on the board, who also chair the audit and
remuneration committees; (2) China SCE's moderate 20%-25% dividend
payout ratio over the past three years; and (3) the presence of
other internal governance structures and standards as required
under the Corporate Governance Code for companies listed on the
Hong Kong Stock Exchange.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade the ratings if China SCE demonstrates stable
sales growth and increases its scale, maintains healthy
profitability, controls its investment and land acquisition budgets
and improves its EBIT/interest coverage to more than 2.5x-3.0x and
revenue/adjusted debt to more than 70%-75% on a sustained basis.
A rating downgrade is unlikely, given the positive outlook.
However, Moody's could revise China SCE's outlook to stable if (1)
its contracted sales weaken; (2) its profit margins decline
significantly; (3) its liquidity becomes impaired, such that
cash/short-term debt falls below 1.0x; or (4) its debt leverage
increases materially, such that EBIT/interest coverage falls under
2.5x-3.0x and revenue/adjusted debt stays below 65%-70% on a
sustained basis.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Founded in 1996, China SCE Group Holdings Limited listed on the
Hong Kong Stock Exchange in February 2010. It was 50.05% owned by
its chairman, Mr. Wong Chiu Yeung, as of December 31, 2020.
As of December 31, 2020, the company had a total land bank of
around 37.68 million square meters in terms of gross floor area,
with nationwide coverage in different tiers of cities across
various regions in China.
HILONG HOLDING: Moody's Ups CFR to Caa1 on Completed Debt Revamp
----------------------------------------------------------------
Moody's Investors Service has upgraded Hilong Holding Limited's
corporate family rating to Caa1 from Caa3. At the same time,
Moody's has revised Hilong's outlook to stable from negative.
The rating action follows Hilong's announcement on May 20 that the
company has completed its debt restructuring scheme on the
effective date of May 18, 2021, and issued new senior secured notes
(the 2024 notes) that will mature on November 18, 2024. The 2024
notes will replace: (1) the USD165 million notes that matured on
June 22, 2020 (the 2020 notes), which were defaulted in June 2020;
and (2) the USD200 million notes due on September 26, 2022 (the
2022 notes), which were defaulted due to a cross default triggered
by the default of the 2020 notes. The 2020 and 2022 notes have been
cancelled.
"The upgrade reflects our expectation that the company's capital
structure and liquidity will improve and its refinancing risks will
reduce, following the completion of the debt restructuring scheme,"
says Chenyi Lu, a Moody's Vice President and Senior Credit
Officer.
"The change in outlook to stable from negative reflects our
expectation that the company will improve its credit profile over
the next 12-18 months on the back of improved earnings, better
working capital management and restrained capital spending amid a
gradually recovering global economy," adds Lu.
RATINGS RATIONALE
Hilong's CFR takes into consideration the company's: (1) relatively
small size and high customer concentration; (2) performance
volatility caused by the cyclical nature of the drill pipe and oil
field services businesses, which are exposed to movements in global
oil prices; and (3) weak liquidity.
These risks are partly offset by the company's solid market
positions in the drill pipe and oil country tubular goods (OCTG)
coating materials and services sectors, as well as its product,
service and geographic diversification.
Hilong's liquidity is weak. As of the end of 2020, the company had
cash and cash equivalents of RMB697 million and restricted cash of
RMB78 million. These liquidity sources and Moody's estimate of the
company's operating cash flow of about RMB185 million for the next
12 months are insufficient to cover short-term debt of RMB878
million and the company's estimate of RMB100 million in maintenance
capital spending over the same period. Its short-term debt excluded
the principal amounts of the 2020 and 2022 notes but included a
cash consideration related to the restructuring scheme, which will
be paid in November 2021.
Moody's expects Hilong's revenue to increase by about 8% in 2021
and 9% in 2022. Such growth will be underpinned by a likely gradual
improvement in the global economic environment leading to higher
demand for its drill pipe products and oil field services, and
improved demand for its line pipe business, which supports the
deployment of China's natural gas network.
Moody's also projects Hilong's adjusted EBITDA margin will increase
to around 19.0%-19.5% over the next 12-18 months from 16.1% in
2020. The rise will be driven by the company's sustained cost and
expense controls, and a higher gross margin from its oil field
services as the business' revenue recovers, improving its equipment
utilization rate and lowering the negative impact from high fixed
costs.
Moody's forecasts Hilong's adjusted debt/EBITDA will decrease to
5.5x-6.0x over the next 12-18 months from 7.5x in 2020, mainly
because of strong earnings. The likely improvement in leverage,
which is strong for its CFR of Caa1, provides some buffer against
oil price volatility.
The rating also takes into account the following environmental,
social and governance (ESG) considerations.
First, the company is exposed to increasingly stringent regulations
pertaining to oil and gas operations, and access to new resources.
However, Hilong has not had any major compliance violations related
to air emissions, water discharge or waste disposal.
Second, on the governance front, the company shows weak financial
management, given the default of its 2020 notes and cross default
of its 2022 notes. Moreover, the company's ownership is
concentrated in its key shareholder, Jun Zhang, who held a total
58.9% stake in the company as of the end of 2020.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The rating could be upgraded if the company (1) achieves strong
growth in its revenue and earnings; (2) further expands its
product, service and geographic diversification while increasing
its profit margin; (3) improves its liquidity on a sustained basis;
and (4) demonstrates a track record of funding access.
The rating could be downgraded if (1) Hilong's revenue and earnings
decline sharply as a result of volatile oil prices; or (2) its
liquidity weakens on a sustained basis. Signs of an inability to
access funding to support its operations would also add downward
rating pressure.
The principal methodology used in this rating was Global Oilfield
Services Industry Rating Methodology published in May 2017.
Hilong Holding Limited is an integrated oilfield equipment and
services provider. The company's four main businesses are (1)
oilfield equipment manufacturing and services, (2) line pipe
technology and services, (3) oilfield services, and (4) offshore
engineering services.
The company listed on the Hong Kong Stock Exchange in 2011. Jun
Zhang, the chairman and founder of the company, is the controlling
shareholder, with a 58.9% equity interest as of the end of 2020.
SUNRISE REAL ESTATE: Incurs $1.6 Million Net Loss in First Quarter
------------------------------------------------------------------
Sunrise Real Estate Group, Inc. filed with the Securities and
Exchange Commission its Quarterly Report on Form 10-Q disclosing a
net loss of $1.64 million on $2.36 million of net revenues for the
three months ended March 31, 2021, compared to a net loss of $1.86
million on $349,105 of net revenues for the three months ended
March 31, 2020.
As of March 31, 2021, the Company had $350.35 million in total
assets, $215.28 million in total liabilities, and $135.07 million
in total shareholders' equity.
In the first quarter of 2021, the Company's principal sources of
cash were revenues from its house sales and property management
business. Most of the Company's cash resources were used to fund
its property development investment and revenue related expenses,
such as salaries and commissions paid to the sales force, daily
administrative expenses and the maintenance of regional offices.
The Company ended the period with a cash position of $16,237,830.
The Company's operating activities used cash in the amount of
$4,523,943, which was primarily attributable to the receipts in
advance from its property development projects and payment of bonus
to one of its directors.
The Company's investing activities used cash resources of $187,579,
which was primarily attributable to the withdrawal of transactional
financial assets.
The Company's financing activities used cash resources of
$16,862,150, which was primarily attributable to restricted cash.
The potential cash needs for 2021 would include the investment of
transactional financial assets, the rental guarantee payments and
promissory deposits for various property projects as well as its
development of the Linyi project and the HATX project.
"Taking into account our cash position, available credit facilities
and cash generated from operating activities, we believe that we
have sufficient funds to operate our existing business for the next
twelve months. If our business otherwise grows more rapidly than
we currently predict, we plan to raise funds through the issuance
of additional shares of our equity securities in one or more public
or private offerings. We will also consider raising funds through
credit facilities obtained with lending institutions. There can be
no guarantee that we will be able to obtain such funds through the
issuance of debt or equity or obtain funds that are with terms
satisfactory to management and our board of directors," the Company
said.
A full-text copy of the Form 10-Q is available for free at:
https://www.sec.gov/Archives/edgar/data/1083490/000110465921070471/tm2116074d1_10q.htm
About Sunrise Real
The principal activities of Sunrise Real Estate Group, Inc. and its
subsidiaries are real estate development and property brokerage
services, including real estate marketing services, property
leasing services; and property management services in the People's
Republic of China.
The Company reported a net loss of $4.24 million for the year ended
Dec. 31, 2020, compared to a net loss of $4.52 million for the year
ended Dec. 31, 2019.
TD HOLDINGS: Delays Filing of First Quarter Form 10-Q
-----------------------------------------------------
TD Holdings, Inc, filed with the Securities and Exchange Commission
a Notification of Late Filing on Form 12b-25 with respect to its
Quarterly Report on Form 10-Q for the three-month period ended
March 31, 2021.
On March 26, 2021, the Audit Committee of the Board of Directors of
TD Holdings, after discussion with the Company's management,
concluded that the Company's previously issued financial statements
contained in the Company's Quarterly Reports on Form 10-Q for the
periods ended March 31, 2020, June 30, 2020, and Sept. 30, 2020,
originally filed on June 26, 2020, Aug. 14, 2020, and Nov. 13,
2020, respectively, should no longer be relied upon.
The Company was unable to file its Quarterly Report on Form 10-Q
for the period ended March 31, 2021 on a timely basis because the
Company requires additional time to finalize the 2020 Quarterly
Reports for the Non-Reliance Periods. The Company anticipates that
it will file the Form 10-Q no later than the fifth calendar day
following the prescribed extended filing date.
As the Company is still working on finalizing the 2020 Quarterly
Reports for the Non-Reliance Periods, it is unable to state that
there will not be changes for prior periods and the Company cannot
estimate on a quantitative basis the amount of such possible
changes.
About TD Holdings
Headquartered in Beijing, People's Republic of China, TD Holdings,
Inc., (formerly known as Bat Group, Inc.) has become a used
luxurious car leasing business as well as a commodities trading
business operating in China since the disposition of its direct
loans, loan guarantees and financial leasing services to
small-to-medium sized businesses, farmers and individuals in July
2018. The Company's current operations consist of leasing of
luxurious pre-owned automobiles and operation of a non-ferrous
metal commodities trading business.
For the year ended Dec. 31, 2019, the Company incurred net loss
from continuing operations of approximately $6.94 million, and
reported cash outflows of approximately $2.17 million from
operating activities. The Company said these factors caused
concern as to its liquidity as of Dec. 31, 2019.
TIMES CHINA: Moody's Rates New Senior Unsecured USD Notes 'B1'
--------------------------------------------------------------
Moody's Investors Service has assigned a B1 rating to the proposed
senior unsecured USD notes to be issued by Times China Holdings
Limited (Ba3 stable).
The rating outlook is stable.
Times China plans to use the proceeds from the proposed notes to
refinance its existing offshore debt.
RATINGS RATIONALE
"Times China's Ba3 CFR reflects the company's growing operating
scale, leading market position in Guangdong province, robust
profitability supported by its good track record of property
development and increasing urban redevelopment project (URP)
conversions, and good liquidity profile," says Danny Chan, a
Moody's Assistant Vice President and Analyst.
"At the same time, the Ba3 CFR is constrained by the company's
geographic concentration in Guangdong province and increasing
exposure to its joint venture (JV) businesses, which lowers the
transparency of its credit metrics," adds Chan, who is also Moody's
lead analyst for Times China.
The proposed bond issuance will lengthen Times China's debt
maturity profile and improve its liquidity without having a
material impact on its credit profile, because the company will use
the proceeds to refinance maturing debt.
Moody's expects Times China's leverage, as measured by
revenue/adjusted debt, to improve to 60%-65% in the next 1-2 years
from 54% in 2020, because the company's revenue will increase as
construction activities normalize following coronavirus-related
disruptions in 2020.
Additionally, Times China's low-cost land bank and growing
contribution from URP will allow it to maintain good profitability,
with projected gross margin at 28% in the next 1-2 years, similar
to the level in 2020. Improving leverage and stable profit margin
will strengthen Times China's EBIT/interest to around 3.0x over the
next 1-2 years from 2.4x in 2020.
The company achieved contracted sales of RMB28.3 billion in the
first four months of 2021, growing a strong 65.5% from the same
period in 2020 due to a low base. Moody's expects Times China's
annual contracted sales growth will remain healthy at around
10%-15% per annum over the next 1-2 years, supported by abundant
saleable resources and the company's good execution track record.
This sales performance will support Times China's liquidity and
future revenue recognition. The company's gross contracted sales
increased 28% to RMB100.4 billion in 2020, following a similar 29%
growth in 2019.
The B1 rating on the proposed notes reflects the risk of structural
subordination, given the fact that most claims are at the operating
subsidiaries and have priority over claims at the holding company
in a bankruptcy scenario. In addition, the holding company lacks
significant mitigating factors for structural subordination,
reducing the expected recovery rate for claims at the holding
company level.
Times China's liquidity is good. Moody's expects the company's cash
holdings and operating cash flow will be sufficient to cover its
committed land payments and maturing debt in the next 12-18 months.
In addition, the company's reported cash balance of RMB37.9 billion
(including restricted cash of RMB4.4 billion) as of December 2020
is more than sufficient to cover its short-term debt of RMB19.1
billion as of December 2020.
As for environmental, social and governance (ESG) risks, Moody's
has considered Times China's increased JV exposure, which reduces
the transparency of its credit metrics.
Moody's has also considered Times China's concentrated ownership by
its key shareholders, Shum Chiu Hung and his wife, who jointly hold
a 61.5% stake as of December 2020. This risk is mitigated by the
company's adherence to the Listing Rules of the Hong Kong Stock
Exchange and the Securities and Futures Ordinance in Hong Kong on
related-party transactions, and the presence of three independent
nonexecutive directors on the company's six-member board of
directors, which provides management oversight. The independent
nonexecutive directors also chair the company's audit and
remuneration committees.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING
The stable outlook reflects Moody's expectation that, in the next
12-18 months, Times China's credit metrics will improve from the
weakened level in 2020, driven by revenue growth, stable margins
and slowing debt increase as the company controls its land
acquisition approach.
Moody's could upgrade the ratings if Times China achieves stable
sales growth and increased operating scale, maintains its strong
liquidity position and improves its credit metrics.
Credit metrics indicative of an upgrade include EBIT/interest
coverage above 3.5x, revenue/adjusted debt above 75%-80% and
cash/short-term debt above 1.5x, all on a sustained basis.
Conversely, Moody's could downgrade the ratings if the company's
sales decline, its debt leverage increases or liquidity position
weakens, or if it undertakes aggressive land or project
acquisitions.
Credit metrics indicative of a downgrade include EBIT/interest
coverage below 2.5x, revenue/adjusted debt below 60%, or
cash/short-term debt below 1.0x, all on a sustained basis.
The principal methodology used in this rating was Homebuilding And
Property Development Industry published in January 2018.
Based in Guangdong province, Times China Holdings Limited is a
property developer that focuses on meeting end-user demand for
mass-market housing. As of December 2020, it had 138 property
projects across 15 cities in Guangdong and in major provincial
cities outside the province, such as Changsha, Wuhan, Chengdu and
Hangzhou. The company's land bank totaled around 21.6 million
square meters as of December 2020.
YANGO GROUP CO: Fitch Assigns B+ Rating to Proposed USD Green Bonds
-------------------------------------------------------------------
Fitch Ratings has assigned Chinese homebuilder Yango Group Co.,
Ltd.'s (B+/Stable) proposed US dollar green bonds a 'B+' rating and
a Recovery Rating of 'RR4'. The proposed notes will be issued by
its wholly owned subsidiary, Yango Justice International Limited.
The notes are rated at the same level as Yango's senior unsecured
rating, as they will be unconditionally and irrevocably guaranteed
by the company.
The rating reflects Yango's stable financial profile, which has
improved significantly since 2018. Fitch estimates that leverage
fell to around 52% by end-2020 and end-March 2021, from above 70%
at end-2017, as Yango cut back on land acquisitions in line with
slower expansion after attributable contracted sales reached a
sufficiently large CNY135 billion in 2019 and CNY139 billion in
2020.
Fitch believes the company has the incentive and ability to
maintain leverage below 55%, supported by a quality land bank that
is sufficient for development in the next 2.5 years. However,
Yango's leverage is still higher than the 40%-50% of most 'B+'
rated peers, and the 35%-45% of 'BB-' peers. The higher leverage
will constrain Yango's rating at the current level.
KEY RATING DRIVERS
Commitment to Deleverage: Yango has met its commitment to reduce
leverage since 2018, after it peaked in 2017. Fitch estimates that
leverage - measured by net debt/adjusted inventory, including
guarantees provided to, and net assets of, joint ventures (JVs) and
associates - improved to 52% by end-2020 and end-March 2021 from
60% in 2019. Yango spent less than 50% of sales receipts on an
attributable basis for land acquisition in 2018-2020, compared with
80% in 2016 and above 100% in 2017.
Leverage Remains High; Risk Reduced: Fitch estimates Yango will
deleverage towards 50% over the next three years by controlling
land acquisition, aiming to keep land purchases at 35%-55% of
annual sales receipts. This is an improvement on 2017, but leverage
will remain high against that of most 'B+' and 'BB-' peers. Yango's
milder growth appetite will lower risks as industry prospects
become more challenging, and ease the pressure to acquire land. It
aims to maintain flat total contracted sales of around CNY220
billion in 2021.
Business Scale Supports Ratings: Yango's business scale is larger
than that of most 'BB' category issuers and is a key business
profile strength. Yango's 2020 attributable sales increased by 3%
to CNY139.6 billion. Total sales in January-April increased by 42%
yoy to CNY64 billion. Yango's well-located saleable resources,
mainly in higher tier cities, will continue to support growth.
Quality, Diversified Land Bank: Yango had 42.5 million sq m in
total land bank at end-2020. Fitch estimates Yango owns around 37.4
million sq m land bank, excluding 12% land for entrusted
construction and sales, which will support property sales for
around 2.5 years. The nationwide land bank had about 30% of
saleable resources in Greater Fujian and the Yangtze River Delta at
end-2020, 35% in strategic cities in central and western China, and
more than 25% in the Pearl River Delta region.
Lower Margin: Yango's EBITDA margin, after adding back capitalised
interest in cost of goods sold, declined to 24% in 2020 (2019:
26%). The average land-bank cost was flat at CNY4,366/sq m at
end-2020, or 31% of its average selling price (ASP) of CNY14,263/sq
m. Yango's new land cost rose to CNY6,347/sq m in 2020, from
CNY5,168/sq m in 2019, due mainly to more acquisitions in higher
tier cities and from public land auctions. Yango aims for new land
cost/ASP of about 1:2.5 to maintain its gross profit margin at
20%-25%.
Weak Parent-Subsidiary Linkages: Fitch assesses the linkage between
Yango and its parent, Fujian Yango Group Co., Ltd. (FJYG), as weak.
FJYG held 34% of Yango at end-2020 and controlled 44% of the voting
rights. FJYG has moderate management control, appointing four of
Yango's twelve board members, but the legal and operational
linkages between the two are not meaningful. Yango and FJYG
sometimes collaborate on education-related projects, which are
immaterial relative to Yango's size.
Parent's Distress May Affect Yango: Financial distress at FJYG may
affect Yango's access to funding, despite the weak
parent-subsidiary ties, as the two sometimes share credit
facilities from banks. Hence, Yango's rating is constrained to two
notches above FJYG's consolidated profile, which Fitch assesses as
'b-' due to higher consolidated leverage and the parent's tight
liquidity. Yango makes up around 90% of FJYG's EBITDA and drives
the consolidated profile.
Fitch estimates that Yango's leverage would have been around 65%
instead of 52% at end-2020 if FJYG's net debt, excluding those of
listed companies, were added to Yango's net debt. The parent's
liquidity was tight at end-March 2021 with available
cash/short-term debt at 0.2x on a deconsolidated basis. However,
the liquidity risk is mitigated by FJYG's CNY4 billion liquid
wealth-management products and the more than CNY15 billion in
market value of the investment in listed companies, such as
Industrial Bank Co., Ltd (BBB-/Stable) and Jiangxi Bank Co., Ltd.
Taikang Life Collaboration Credit Positive: Fitch believes Taikang
Life Insurance Co., Ltd.'s (A/Stable) collaboration with the
company will help lower Yango's funding costs and reduce the impact
from a weaker parent's consolidated profile. Fitch also expects the
two to collaborate in expanding other property-related businesses.
Taikang Life and its affiliates have become the second-largest
shareholder, holding 13.5% of Yango, with two board seats as of
end-April 2021.
DERIVATION SUMMARY
Yango's diversified nationwide portfolio and large scale are
comparable with those of 'BB' rated Chinese homebuilders. Yango's
CNY139.6 billion attributable contracted sales in 2020 are
comparable with that of CIFI Holdings (Group) Co. Ltd. (BB/Stable)
and stronger than those of 'BB-' and 'B' rated peers, which usually
have contracted sales of below CNY60 billion. More than 70% of
Yango's land bank by saleable resources is located in Tier 1 and
Tier 2 cities, which Fitch believes have resilient demand to
cushion the impact of a homebuilding-sector slowdown, compared with
lower-tier cities.
However, Yango's higher leverage constrains its rating at 'B+'. The
company has taken measures to reduce leverage consistently over the
past two years, but it remains higher than that of 'B+' rated
peers, such as Zhenro Properties Group Limited (B+/Stable), whose
leverage is between 40% and 50%.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Attributable contracted sales of CNY140 billion in 2021;
-- Land premium accounting for 55% of sales receipts in 2021;
-- Construction expenditure accounting for 25%-30% of sales
receipts in 2021;
-- Cash collection rate at 80% (2019 and 2020: 80%).
KEY RECOVERY RATING ASSUMPTIONS
-- The recovery analysis assumes that Yango would be liquidated
in bankruptcy because it is an asset-trading company.
-- Fitch has assumed a 10% administrative claim.
Liquidation Approach:
-- The liquidation estimate reflects Fitch's view of the value of
balance sheet assets that can be realised in sale or
liquidation processes conducted during a bankruptcy or
insolvency proceeding and distributed to creditors;
-- Advance rate of 70% applied to trade receivables;
-- Advance rate of 60% applied to property, plant and equipment
(PPE);
-- The 70% advance rate applied to adjusted inventory excluding
investment property and PPE due to 24% EBITDA margin (excl.
capitalised interests);
-- Advance rate of 35% applied to the investment property
portfolio, considering the limited rental income of CNY275
million and low rental yield of 2%;
-- Advance rate of 8% applied to available cash of CNY40.5
billion, as only cash in excess of the higher of accounts
payable and three months of attributable contracted sales is
factored in;
-- Advance rate of 100% applied to restricted cash and time
deposits.
Fitch estimates the recovery rate for the offshore senior unsecured
debt to be within the 'RR4' Recovery Rating range, based on Fitch's
calculation of adjusted liquidation value after administrative
claims. The allocation of value in the liability waterfall results
in a recovery corresponding to 'RR2' for the offshore senior notes,
but the recovery is capped at 'RR4', according to Fitch's
Country-Specific Treatment of Recovery Ratings Criteria. This is
because China falls into Group D of creditor friendliness, and the
Recovery Ratings on instruments of issuers with assets in this
group are subject to a cap of 'RR4'.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Net debt/adjusted inventory sustained below 50%;
-- Improvement of FJYG's consolidated profile, including the
ratio of consolidated net debt (excluding subsidiary Longking)
to adjusted inventory sustained below 65%;
-- EBITDA margin sustained above 20%.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Net debt/adjusted inventory above 65% for a sustained period;
-- EBITDA margin below 15% for a sustained period;
-- Deterioration of FJYG's consolidated profile, or significant
deterioration of the parent's liquidity.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: Yango's liquidity has improved due to better
cash management and an improving debt maturity profile. Yango has
become more financially disciplined by budgeting cash outflow on
land acquisitions according to cash inflow from sales. It had
unrestricted cash on hand of CNY39.7 billion at end-March 2021,
sufficient to cover around CNY34 billion in short-term debt
including perpetual loans. Unrestricted cash over short-term debt
increased to 1.1x at end-2020 and 1.2x at end-March 2021, from 0.7x
in 2017-2018.
Improvement in Debt Structure: Yango has improved its debt maturity
profile, with short-term debt dropping to around 29% of total debt
at end-2020, from 40% at end-2017 and end-2018. The company is also
replacing non-bank financing with bank loans, with non-bank
financing decreasing to 20% of total debt at end-2020, from 25% at
end-2019 and 53% at end-2018. Fitch believes the improvement in the
debt structure reflects better access to financing that gives the
company greater financial flexibility, as the funding environment
for homebuilders remains challenging.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch's calculation of CNY147 billion in adjusted inventory at
end-2020 includes: CNY187 billion of inventory; CNY5 billion in
buildings or construction in progress or land use rights; CNY7
billion in property-related assets; CNY10 billion in investment
properties; CNY68 billion in contract liabilities; CNY23 billion
net due to non-controlling interests; CNY50 billion adjusted
investment in JVs and associates; and CNY20 billion net amount due
to JVs and associates. Fitch has adjusted the value of investment
properties based on investment properties at cost.
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.
Fitch Ratings has assigned Chinese homebuilder Yango Group Co.,
Ltd.'s (B+/Stable) proposed US dollar green bonds a 'B+' rating and
a Recovery Rating of 'RR4'. The proposed notes will be issued by
its wholly owned subsidiary, Yango Justice International Limited.
The notes are rated at the same level as Yango's senior unsecured
rating, as they will be unconditionally and irrevocably guaranteed
by the company.
The rating reflects Yango's stable financial profile, which has
improved significantly since 2018. Fitch estimates that leverage
fell to around 52% by end-2020 and end-March 2021, from above 70%
at end-2017, as Yango cut back on land acquisitions in line with
slower expansion after attributable contracted sales reached a
sufficiently large CNY135 billion in 2019 and CNY139 billion in
2020.
Fitch believes the company has the incentive and ability to
maintain leverage below 55%, supported by a quality land bank that
is sufficient for development in the next 2.5 years. However,
Yango's leverage is still higher than the 40%-50% of most 'B+'
rated peers, and the 35%-45% of 'BB-' peers. The higher leverage
will constrain Yango's rating at the current level.
KEY RATING DRIVERS
Commitment to Deleverage: Yango has met its commitment to reduce
leverage since 2018, after it peaked in 2017. Fitch estimates that
leverage - measured by net debt/adjusted inventory, including
guarantees provided to, and net assets of, joint ventures (JVs) and
associates - improved to 52% by end-2020 and end-March 2021 from
60% in 2019. Yango spent less than 50% of sales receipts on an
attributable basis for land acquisition in 2018-2020, compared with
80% in 2016 and above 100% in 2017.
Leverage Remains High; Risk Reduced: Fitch estimates Yango will
deleverage towards 50% over the next three years by controlling
land acquisition, aiming to keep land purchases at 35%-55% of
annual sales receipts. This is an improvement on 2017, but leverage
will remain high against that of most 'B+' and 'BB-' peers. Yango's
milder growth appetite will lower risks as industry prospects
become more challenging, and ease the pressure to acquire land. It
aims to maintain flat total contracted sales of around CNY220
billion in 2021.
Business Scale Supports Ratings: Yango's business scale is larger
than that of most 'BB' category issuers and is a key business
profile strength. Yango's 2020 attributable sales increased by 3%
to CNY139.6 billion. Total sales in January-April increased by 42%
yoy to CNY64 billion. Yango's well-located saleable resources,
mainly in higher tier cities, will continue to support growth.
Quality, Diversified Land Bank: Yango had 42.5 million sq m in
total land bank at end-2020. Fitch estimates Yango owns around 37.4
million sq m land bank, excluding 12% land for entrusted
construction and sales, which will support property sales for
around 2.5 years. The nationwide land bank had about 30% of
saleable resources in Greater Fujian and the Yangtze River Delta at
end-2020, 35% in strategic cities in central and western China, and
more than 25% in the Pearl River Delta region.
Lower Margin: Yango's EBITDA margin, after adding back capitalised
interest in cost of goods sold, declined to 24% in 2020 (2019:
26%). The average land-bank cost was flat at CNY4,366/sq m at
end-2020, or 31% of its average selling price (ASP) of CNY14,263/sq
m. Yango's new land cost rose to CNY6,347/sq m in 2020, from
CNY5,168/sq m in 2019, due mainly to more acquisitions in higher
tier cities and from public land auctions. Yango aims for new land
cost/ASP of about 1:2.5 to maintain its gross profit margin at
20%-25%.
Weak Parent-Subsidiary Linkages: Fitch assesses the linkage between
Yango and its parent, Fujian Yango Group Co., Ltd. (FJYG), as weak.
FJYG held 34% of Yango at end-2020 and controlled 44% of the voting
rights. FJYG has moderate management control, appointing four of
Yango's twelve board members, but the legal and operational
linkages between the two are not meaningful. Yango and FJYG
sometimes collaborate on education-related projects, which are
immaterial relative to Yango's size.
Parent's Distress May Affect Yango: Financial distress at FJYG may
affect Yango's access to funding, despite the weak
parent-subsidiary ties, as the two sometimes share credit
facilities from banks. Hence, Yango's rating is constrained to two
notches above FJYG's consolidated profile, which Fitch assesses as
'b-' due to higher consolidated leverage and the parent's tight
liquidity. Yango makes up around 90% of FJYG's EBITDA and drives
the consolidated profile.
Fitch estimates that Yango's leverage would have been around 65%
instead of 52% at end-2020 if FJYG's net debt, excluding those of
listed companies, were added to Yango's net debt. The parent's
liquidity was tight at end-March 2021 with available
cash/short-term debt at 0.2x on a deconsolidated basis. However,
the liquidity risk is mitigated by FJYG's CNY4 billion liquid
wealth-management products and the more than CNY15 billion in
market value of the investment in listed companies, such as
Industrial Bank Co., Ltd (BBB-/Stable) and Jiangxi Bank Co., Ltd.
Taikang Life Collaboration Credit Positive: Fitch believes Taikang
Life Insurance Co., Ltd.'s (A/Stable) collaboration with the
company will help lower Yango's funding costs and reduce the impact
from a weaker parent's consolidated profile. Fitch also expects the
two to collaborate in expanding other property-related businesses.
Taikang Life and its affiliates have become the second-largest
shareholder, holding 13.5% of Yango, with two board seats as of
end-April 2021.
DERIVATION SUMMARY
Yango's diversified nationwide portfolio and large scale are
comparable with those of 'BB' rated Chinese homebuilders. Yango's
CNY139.6 billion attributable contracted sales in 2020 are
comparable with that of CIFI Holdings (Group) Co. Ltd. (BB/Stable)
and stronger than those of 'BB-' and 'B' rated peers, which usually
have contracted sales of below CNY60 billion. More than 70% of
Yango's land bank by saleable resources is located in Tier 1 and
Tier 2 cities, which Fitch believes have resilient demand to
cushion the impact of a homebuilding-sector slowdown, compared with
lower-tier cities.
However, Yango's higher leverage constrains its rating at 'B+'. The
company has taken measures to reduce leverage consistently over the
past two years, but it remains higher than that of 'B+' rated
peers, such as Zhenro Properties Group Limited (B+/Stable), whose
leverage is between 40% and 50%.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Attributable contracted sales of CNY140 billion in 2021;
-- Land premium accounting for 55% of sales receipts in 2021;
-- Construction expenditure accounting for 25%-30% of sales
receipts in 2021;
-- Cash collection rate at 80% (2019 and 2020: 80%).
KEY RECOVERY RATING ASSUMPTIONS
-- The recovery analysis assumes that Yango would be liquidated
in bankruptcy because it is an asset-trading company.
-- Fitch has assumed a 10% administrative claim.
Liquidation Approach:
-- The liquidation estimate reflects Fitch's view of the value of
balance sheet assets that can be realised in sale or
liquidation processes conducted during a bankruptcy or
insolvency proceeding and distributed to creditors;
-- Advance rate of 70% applied to trade receivables;
-- Advance rate of 60% applied to property, plant and equipment
(PPE);
-- The 70% advance rate applied to adjusted inventory excluding
investment property and PPE due to 24% EBITDA margin (excl.
capitalised interests);
-- Advance rate of 35% applied to the investment property
portfolio, considering the limited rental income of CNY275
million and low rental yield of 2%;
-- Advance rate of 8% applied to available cash of CNY40.5
billion, as only cash in excess of the higher of accounts
payable and three months of attributable contracted sales is
factored in;
-- Advance rate of 100% applied to restricted cash and time
deposits.
Fitch estimates the recovery rate for the offshore senior unsecured
debt to be within the 'RR4' Recovery Rating range, based on Fitch's
calculation of adjusted liquidation value after administrative
claims. The allocation of value in the liability waterfall results
in a recovery corresponding to 'RR2' for the offshore senior notes,
but the recovery is capped at 'RR4', according to Fitch's
Country-Specific Treatment of Recovery Ratings Criteria. This is
because China falls into Group D of creditor friendliness, and the
Recovery Ratings on instruments of issuers with assets in this
group are subject to a cap of 'RR4'.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- Net debt/adjusted inventory sustained below 50%;
-- Improvement of FJYG's consolidated profile, including the
ratio of consolidated net debt (excluding subsidiary Longking)
to adjusted inventory sustained below 65%;
-- EBITDA margin sustained above 20%.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Net debt/adjusted inventory above 65% for a sustained period;
-- EBITDA margin below 15% for a sustained period;
-- Deterioration of FJYG's consolidated profile, or significant
deterioration of the parent's liquidity.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: Yango's liquidity has improved due to better
cash management and an improving debt maturity profile. Yango has
become more financially disciplined by budgeting cash outflow on
land acquisitions according to cash inflow from sales. It had
unrestricted cash on hand of CNY39.7 billion at end-March 2021,
sufficient to cover around CNY34 billion in short-term debt
including perpetual loans. Unrestricted cash over short-term debt
increased to 1.1x at end-2020 and 1.2x at end-March 2021, from 0.7x
in 2017-2018.
Improvement in Debt Structure: Yango has improved its debt maturity
profile, with short-term debt dropping to around 29% of total debt
at end-2020, from 40% at end-2017 and end-2018. The company is also
replacing non-bank financing with bank loans, with non-bank
financing decreasing to 20% of total debt at end-2020, from 25% at
end-2019 and 53% at end-2018. Fitch believes the improvement in the
debt structure reflects better access to financing that gives the
company greater financial flexibility, as the funding environment
for homebuilders remains challenging.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch's calculation of CNY147 billion in adjusted inventory at
end-2020 includes: CNY187 billion of inventory; CNY5 billion in
buildings or construction in progress or land use rights; CNY7
billion in property-related assets; CNY10 billion in investment
properties; CNY68 billion in contract liabilities; CNY23 billion
net due to non-controlling interests; CNY50 billion adjusted
investment in JVs and associates; and CNY20 billion net amount due
to JVs and associates. Fitch has adjusted the value of investment
properties based on investment properties at cost.
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.
=========
I N D I A
=========
3G TELECOM: Ind-Ra Keeps 'B+' LT Issuer Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained 3G Telecom Infra
India Private Limited's Long-Term Issuer Rating in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR30 mil. Fund-based working capital limits maintained in
non-cooperating category with IND B+ (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating;
-- INR30.4 mil. Non-fund-based working capital limits maintained
in Non-Cooperating Category with IND A4 (ISSUER NOT
COOPERATING) rating;
-- INR10 mil. Proposed fund-based working capital limits
withdrawn (the company did not proceed with the instrument as
envisaged); and
-- INR29.6 mil. Proposed non-fund based working capital limits
withdrawn (the company did not proceed with the instrument as
envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 31, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 2009, 3G Telecom Infra India is an infrastructure
provider of fiber optic networks in Telangana and Andhra Pradesh.
AMAR RICE: CRISIL Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Amar Rice
Mills - Jammu (ARM) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.4 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Cash 0.6 CRISIL B+/Stable (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with ARM for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 ARM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ARM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ARM continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
ARM, set up as a proprietorship by Mr. Mulk Raj in 1977 at Jammu,
undertakes rice milling and sorting.
ANAND MINE: Ind-Ra Keeps 'D' LT Issuer Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Anand Mine Tools
Private Limited's Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR130 mil. Fund-based limits (Long-term) maintained in the
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating;
-- INR40 mil. Proposed fund-based working capital limits (Long-
term) withdrawn (the company did not proceed with the
instrument as envisaged) rating;
-- INR27.5 mil. Term loan (Long-term) due on July 2021 maintained
in the non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR16 mil. Non-fund-based limits (Short-term) maintained in
the non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 13, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2010, Anand Mine Tools is an authorized dealer of
Joseph Cyril Bamford for sales and services of the latter's
equipment and spare parts in Nagpur, Chandrapur, Wardha, Yavatmal,
Bhandara, Gondia, Gadchiroli and Wani (Maharashtra).
ANSHUMAN TRADING: Ind-Ra Keeps B+ Issuer Rating to Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Anshuman Trading
Private Limited's Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR50 mil. Proposed fund-based working capital limit assigned
and maintained in the non-cooperating category with IND B+
(ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING)
rating; and
-- INR200 mil. Proposed non-fund-based limit* assigned and
maintained in the non-cooperating category with IND A4 (ISSUER
NOT COOPERATING) rating.
*The provisional rating of the proposed bank facilities has been
converted to final rating as per Ind-Ra's updated policy.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 17, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in October 2013, Mumbai-based ATPL trades in household
electronic appliances.
ARUN SPINNING: Ind-Ra Assigns B+ LT Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Rating and Research (Ind-Ra) has assigned Arun Spinning Mills
Private Limited (ASMPL) a Long-Term Issuer Rating of 'IND B+'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR43.1 mil. Term loan due on March 2028 assigned with IND B+/
Stable rating; and
-- INR115.0 mil. Fund-based facilities assigned with IND B+/
Stable/IND A4 rating.
KEY RATING DRIVERS
The rating reflects ASMPL's small scale of operations, as indicated
by revenue of INR472.7 million in FY21 (FY20: INR538.5 million).
The revenue fell due to a decline in the number of orders received
from customers, resulting from COVID-19-led disruptions. The
figures for FY21 are provisional in nature. Ind-Ra expects the
revenue to rise slightly in FY22, backed by a likely increase in
the capacity and higher demand.
The ratings reflect ASMPL's modest EBITDA margins due to the
intense competition in the spinning business. The EBITDA margin
increased to 6.8% in FY21 (FY20: 5.9%), due to a fall in raw
material prices. The ROCE stood at 8.0% in FY21 (FY20: 7%). Ind-Ra
expects the EBITDA margin to remain at the same level in FY22 due
to the likely stability in cotton prices. The margins are likely to
remain modest in the near-to-medium term
Liquidity Indicator - Poor: ASMPL's average maximum utilization of
the fund-based limits was about 97% for the 12 months ended April
2021. The cash flow from operations turned negative at INR14.39
million in FY21 (FY20: INR73.9 million) on account of unfavorable
changes in working capital. The net working capital requirements
increased to INR171.2 million in FY21 (FY20: INR152.6 million)
owing to an increase in the inventory levels. The working capital
cycle days improved slightly to 146 days in FY21 (FY20: 148 days)
due to a decrease in the debtor days to 14 days (37 days). At
FYE21, ASMPL had a cash balance of INR0.31 million (FYE20: INR0.25
million), against the total debt of INR167.27 million (INR154.13
million). ASMPL had not availed the Reserve Bank of
India-prescribed debt moratorium.
The ratings are constrained by ASMPL's modest credit metrics due to
the high debt levels. The metrics weakened in FY21 due to an
increase in the total debt to INR167 million (FY20: INR154 million)
and the consequent increase in interest expenses. The interest
coverage (operating EBITDA/interest coverage) was 1.97x in FY21
(FY20: 2.07x) and the net leverage was of 5.1x (4.8x). Ind-Ra
expects the credit metrics to remain modest in the near-to-medium
term owing to continued high debt levels. The company had
interest-free debt of INR0.29 million at FYE21 (FYE20: INR31.8
million) from the directors.
The ratings, however, are supported by the promoters' experience of
over two decades in the textile industry.
RATING SENSITIVITIES
Negative: A decline in the scale of operations, leading to
deterioration in the credit metrics, with the interest coverage
falling below 1.5x, will be negative for the ratings.
Positive: An increase in the scale of operations, along with an
improvement in the overall credit metrics, and/or any improvement
of the liquidity position, all on a sustained basis, would lead to
positive rating action.
COMPANY PROFILE
Incorporated in 1997, ASMPL is managed by P. Subbaraman. The
company manufactures combed carded and open-ended cotton yarn.
Located in Rajapalayam (Tamil Nadu), ASPL's spinning units
currently have a combined installed capacity of 22176 spindles and
608 rotors manufacturing cotton yarn of counts 20s to 80s.
ARUNODAYA PRINT: Ind-Ra Keeps BB Issuer Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Arunodaya Print
Pack Private Limited's Long-Term Issuer Rating in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR38.95 mil. Long-term loans due on May 2021 maintained in
non-cooperating category with IND BB (ISSUER NOT COOPERATING)
rating;
-- INR29.50 mil. Fund-based limits maintained in non-cooperating
category with IND BB (ISSUER NOT COOPERARTING)/IND A4+
(ISSUER NOT COOPERATING) rating;
-- INR2.80 mil. Non-fund-based limits maintained in non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating;
-- INR20.00 mil. Proposed term loan withdrawn (the company did
not proceed with the instrument as envisaged);
-- INR15.00 mil. Proposed fund-based limits withdrawn (the
company did not proceed with the instrument as envisaged);
and
-- INR1.20 mil. Proposed non-fund-based limits withdrawn (the
company did not proceed with the instrument as envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 19, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2004, Arunodaya Print Pack is involved in
multicolor printing and packaging. The company caters to the
fast-moving consumer goods, distillery, and pharma industries. The
company's registered office is in Delhi.
ASTER PRIVATE: Ind-Ra Keeps 'D' Issuer Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Aster Private
Limited's Long-Term Issuer Rating in the non-cooperating category.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using the rating. The rating will continue to appear as 'IND
D (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR2.25 bil. Fund-based limits (long-/short-term) maintained
in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR11,039.5 bil. Non-fund-based limits (long-/short-term)
maintained in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING; Based on best available information:
The ratings were last reviewed on September 2, 2014. Ind-Ra is
unable to provide an update, as the agency does not have adequate
information to review the ratings.
COMPANY PROFILE
Aster is a Hyderabad-based tower fabricating and engineering
procurement and construction company that undertakes works in the
power, telecom, and engineering segments.
AVICHAL MULTITRADE: Ind-Ra Keeps B Issuer Rating in Non-Cooperating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Avichal
Multitrade Private Limited's Long-Term Issuer Rating in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND B (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR50 mil. Proposed Fund-based working capital limit* assigned
and maintained in non-cooperating category with IND B (ISSUER
NOT COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating; and
-- INR 150 mil. Proposed non-fund-based limit* assigned and
maintained in non-cooperating category with IND A4 (ISSUER
NOT COOPERATING) rating.
*The provisional ratings of the proposed bank facilities have been
converted to final ratings as per Ind-Ra's updated policy.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 6, 2017. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Established in March 2014, Avichal Multitrade is a Mumbai -based
trader of household electronic appliances.
BHOMIA BUTTONS: CRISIL Lowers Rating on INR15cr Loans to D
----------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Bhomia Buttons Pvt Ltd (BBPL) to 'CRISIL D Issuer Not
Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
Long Term Loan 3 CRISIL D (ISSUER NOT
COOPERATING; Downgraded from
'CRISIL B+/Stable ISSUER NOT
COOPERATING')
CRISIL Ratings has been consistently following up with BBPL through
letters and emails, dated April 23, 2019, and October 11, 2019,
among others, apart from telephonic communication, for obtaining
information. 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 company's management,
CRISIL Ratings did not receive any information on the financial
performance or strategic intent of BBPL, which restricts CRISIL
Ratings' ability to take a forward-looking view on the entity's
credit quality. The rating action on BBPL is consistent with
Assessing Information Adequacy Risk.
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of BBPL to 'CRISIL D Issuer Not Cooperating' from
'CRISIL B+/Stable Issuer Not Cooperating' because of delay in
meeting debt obligation by the company in the past six months.
Incorporated in 2002, BBPL is promoted by Mr. Sandeep Jain. The
company, based in Bahadurgarh, Haryana, manufactures standard and
customized buttons, hangers and labels.
CLEANTEC INFRA: Ind-Ra Keeps BB+ Issuer Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Cleantec Infra
Private Limited's Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR20 mil. Fund-based working capital limits maintained in
non-cooperating category with IND BB+ (ISSUER NOT
COOPERATING)/IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR40 mil. Non-fund-based working capital limits maintained in
non-cooperating category with IND A4+ (ISSUER NOT
COOPERATING) rating;
-- INR20 mil. Proposed fund-based working capital limits
withdrawn (the company did not proceed with the instrument as
envisaged); and
-- INR120 mil. Proposed non-fund based working capital limits
withdrawn (the company did not proceed with the instrument as
envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 18, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in 2010, Cleantec Infra is involved in the trading of
mechanized cleaning machines and spare parts.
DURGA MARUTHI: CRISIL Lowers Rating on INR10.35cr Loan to D
-----------------------------------------------------------
CRISIL Ratings has downgraded the ratings on bank facilities of Sri
Durga Maruthi Automotives Private Limited (SDMAPL) to 'CRISIL D'
from CRISIL BB-/Stable.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
Electronic Dealer 10.35 CRISIL D (Downgraded from
Financing Scheme 'CRISIL BB-/Stable')
(e-DFS)
Proposed Long Term 0.24 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL BB-/Stable')
Downgrade in the rating reflects delay in serving of term loan
principal due to stretched liquidity position.
The rating continues to reflect the extensive experience of the
promoter and the company's established presence in the automotive
(auto) dealership business and moderate operating efficiencies.
These strengths are partially offset by modest scale of operations
in the intensely competitive auto dealership segment and
below-average financial risk profile.
Key Rating Drivers & Detailed Description
Strengths:
* Extensive industry experience of the promoter and established
presence in the auto dealership business: The company is promoted
by Mr. S Venkateswara Rao, who has been in the auto business for
around two decades. CRISIL believes SDMAPL will continue to benefit
from its established presence and its promoter's extensive
experience.
* Moderate operating efficiencies: Above-average operating margin
and prudent working capital management results in moderate
operating efficiencies. Return on capital employed was comfortable
at 15.2% in fiscal 2020 and is likely to be in the range of 13-14%
over the medium term.
Weakness:
* Modest scale of operations in the intensely competitive auto
dealership segment: SDMAPL's modest scale is reflected in revenue
of INR53.1 crore in fiscal 2020. The company faces competition from
other dealers of MSIL and of other four-wheeler manufacturers in
Andhra Pradesh. CRISIL believes SDMAPL's scale of operations will
remain modest over the medium term.
* Below-average financial risk profile: Financial risk profile is
marked by a modest networth and high total outside liabilities to
tangible networth (TOL/TNW) of INR3.33 crore and 4.89 times
respectively as of March 31, 2020. Interest coverage ratio too is
modest at 1.44 times in fiscal 2020.
Liquidity: Poor
Working capital facilities were utilized extensively at 95.7% on
average over the 12 months through June 2020, while the electronic
dealer financing scheme facility was utilized 91.2% on average in
the six months through June 2020.
Rating Sensitivity factors
Upward factors:
* Track record of timely debt servicing for at least over 90 days
* Sustained improvement in financial risk profile
Incorporated in 2016, SDMAPL is an authorised dealer of MSIL at
Anantpur in Andhra Pradesh for the Nexa range of four-wheelers and
spares, accessories and services. The company is promoted by Mr.
Venkateshwar Rao.
ESSPAL INTERNATIONAL: Ind-Ra Assigns 'BB+' Bank Loan Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on Esspal International Private Limited (EIPL):
-- Long-term issuer rating affirmed with IND BB+/Stable rating;
-- INR165.00 mil. Fund-based limit affirmed with IND BB+/Stable/
IND A4+ rating;
-- INR205.00 mil. Fund-based limit assigned with IND BB+/Stable/
IND A4+ rating;
-- INR50.00 mil. Non-fund-based limit assigned with IND A4+
rating; and
-- INR60.00 mil. Term loan due on January 2025 assigned with
IND BB+/Stable rating.
RATING SENSITIVITIES
Positive: A substantial growth in the scale of operations, leading
to an improvement in the credit metrics with the net leverage
reducing below 3.5x, all on a sustained basis, could lead to
positive rating action.
Negative: Any decline in the scale of operations, leading to a
deterioration in the credit metrics and/or deterioration in the
liquidity will be negative for the ratings.
COMPANY PROFILE
Incorporated in March 2009, EIPL is engaged in the manufacturing
and trading of grey fabrics. It has its unit in Bhilwara, Rajasthan
with 340 weaving machines. EIPL is promoted by Manish Lath and
Rashmi Lath.
GMW PRIVATE: Ind-Ra Affirms 'BB-' LT Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed GMW Private
Limited's (GMW) Long-Term Issuer Rating at 'IND BB-'. The Outlook
is Stable.
The instrument-wise rating actions are:
-- INR50 mil. Fund-based working capital limits affirmed with IND
BB-/Stable rating;
-- INR520 mil. (reduced from INR540 million mil.) Non-fund-based
working capital limits affirmed with IND A4+ rating;
-- INR12.6 mil. Term loans due on March 2027 assigned with IND
BB-/Stable rating; and
-- INR80 mil. Proposed non-fund-based working capital limits*
assigned with IND A4+ rating.
* Unallocated
KEY RATING DRIVERS
The affirmation reflects GMW's continued small scale of operations
as reflected by revenue of INR389.0 million in FY20 (FY19: INR526.7
million). The revenue declined in FY20 due to decreased execution
of orders and the COVID-19 led operational disruption towards the
end of FY20.According to provisional financials, the company
achieved revenue of INR310 million in FY21. As on 1 April 2021, the
company had an order book of INR2,557 million (6.6x FY20 revenue),
which the management expects to execute by FY24.
The ratings also reflect GMW's modest EBITDA margin of 13.1% in
FY20 (FY19: 12.0%) with return on capital employed of 6.8% (FY19:
8.3%). The margin expanded in FY20 due to a decrease in the
operating expenses and the execution of higher-margin orders.
Ind-Ra expects the company's margin to have marginally contracted
in FY21 due to the adverse impact of COVID-19 on the company's
business.
The ratings factor in the company's moderate credit metrics. In
FY20, the interest coverage (operating EBITDA/gross interest
expense) deteriorated to 1.7x (FY19: 2x) and net leverage (total
adjusted net debt/operating EBITDAR) to 1.6x (0.8x). The credit
metrics deteriorated due to a fall in the absolute EBITDA to
INR50.9 million in FY20 (FY19: INR63.1 million) and an increase in
the total debt to INR82.7 million (INR55.5 million) on account of
an increase in the utilization of the fund-based limits. Despite
the repayment of existing loans in FY21, Ind-Ra expects GMW's
credit metrics to have remained moderate in FY21 due to the
availment of INR3.71 million machinery loan from HDB Financial
Services Ltd. and an INR5 million COVID-19 loan taken from the
State Bank of India ('IND AAA'/Stable).
Liquidity Indicator- Poor: The company's fund based and non-fund
based facilities were maximum utilized at an average of 99.9% and
83.9%, respectively, during the last 12-months ended April 2021.
The cash flow from operations remained positive but deteriorated to
INR16.6 million in FY20 (FY19: INR150 million) on account of
unfavorable changes in the working capital. The net cash conversion
cycle deteriorated to 198 days in FY20 (FY19: 109 days) on account
of an increase in the debtor days to 330 (280) and an increase in
the inventory days to 136 (91) due to the lockdown. The company's
cash and cash equivalents remained low at INR3.5 million in FY20
(FY19: INR7.1 million). The company availed of the Reserve Bank of
India-led moratorium for fund-based limits in July 2020 and August
2020.
The ratings, however, are supported by the promoter's (Onkarsingh
Panesar) around four decades of experience in executing various
power projects.
RATING SENSITIVITIES
Negative: A further stretch in the liquidity position, along with a
further decline in the revenue or EBITDA margin, resulting in a
sustained deterioration in the credit metrics, could lead to a
negative rating action.
Positive: An improvement in the liquidity position, along with
substantial growth in the revenue and EBITDA margin, leading to an
improvement in the interest coverage exceeding 1.7x, could lead to
a positive rating action.
COMPANY PROFILE
GMW, incorporated in 2005 as a private limited company, was
previously a partnership firm since 1978. The company executes
various power projects on engineering, procurement and construction
basis. It executes technological steel structure & piping package;
hydro mechanical structures; hoists & cranes; various filtration
equipment for thermal, and green energy projects such as
hydroelectric & nuclear projects. The head office is located at
Vadodara (Gujarat).
HARSHNA NATURALS: CRISIL Keeps B- Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Harshna
Naturals (HN; part of the Harshna group) continue to be 'CRISIL
B-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B-/Stable (Issuer Not
Cooperating)
Term Loan 5 CRISIL B-/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with HN for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 HN, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on HN is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of HN
continues to be 'CRISIL B-/Stable Issuer Not Cooperating'.
For arriving at its rating, CRISIL Ratings has combined the
business and financial risk profiles of HN and HN Agri Serve Pvt
Ltd (HNAS). This is because the two entities, together referred to
as the Harshna group, are in the same line of business and under
the same management.
The Harshna group is based in Jammu & Kashmir and promoted by Mr.
Rakesh Kohli, Mr. Naresh Kohli, Mr. Aman Kohli, Mr. Mir Mohammad
Shafi, and Mr. Mir Khuram Shafi. HN, a partnership firm, was
established in 2007, while HNAS was incorporated in 2011 and
started operations in October 2013. Both entities have a
controlled-atmosphere cold storage facility in Kashmir with
capacity of 5000 tonne each, and packing and grading lines for
apples.
IDBI BANK: S&P Affirms Then Withdraws 'BB/B' ICRs
-------------------------------------------------
S&P Global Ratings affirmed its 'BB' long-term and 'B' short-term
foreign currency issuer credit ratings on IDBI Bank Ltd. S&P also
affirmed its 'BB' program rating on the senior unsecured notes
under its MTN program. S&P then withdrew the ratings at the bank's
request. The outlook was negative at the time of the withdrawal.
S&P said, "We affirmed the ratings because we expect IDBI Bank's
improving financial performance to offset the risk of the bank's
weakening link with the government. We have revised upward our
assessment of IDBI Bank's stand-alone credit profile (SACP) to 'b+'
from 'b-'. At the same time, we have lowered our assessment of the
likelihood of extraordinary government support to high from very
high.
"The impending divestment of the majority government owned bank
could reduce the likelihood of external support, in our view.
However, our base case still factors in a high likelihood that the
government of India would provide (directly or indirectly) timely
and sufficient extraordinary support to IDBI Bank in the event of
financial distress. This is based on the bank's very important role
and strong link with the government.
"The high uncertainty associated with the eventual timeline of
divestment raises further transition risk. While we believe that
the strategic sale in IDBI Bank will likely be challenging in the
current year owing to the bank's low equity valuation and wary
investor sentiment under COVID-19. Nonetheless, it does add an
overhang on the ratings. Moreover, we expect the very important
role that IDBI Bank, as part of a block of government-owned banks,
plays for the government to weaken as the bank focuses and moves
away from its public policy role.
"In our view, IDBI Bank's asset quality remains weaker than the
industry average, despite an improvement from historically very
weak levels. The bank has made structural and systemic improvements
to strengthen its performance. It has reduced its loan
concentration and de-risked its balance sheet by increasing
exposure to the more granular retail and micro, small, and midsize
enterprise segments." IDBI Bank's loan portfolio has shrunk over
the past couple of years due to negative growth in the corporate
book owing to the de-risking initiatives, and also because the bank
was under PCA. IDBI Bank has improved its provisioning for
nonperforming loans to 96.9% (including technical write-offs) of
total loans as of March 31, 2021, the highest among
government-owned banks. Accordingly, the bank's net nonperforming
assets (NPAs) ratio was 1.97%, better than that of most
government-owned banks, except State Bank of India (the largest
bank in the country).
S&P said, "The bank's performance in fiscal 2021 (ended March 31,
2021), was better than we expected, with reported slippage
(increase in NPAs) of 1.9% and credit costs at 1.4% of total
advances. The improvement was in part due to regulatory
forbearances (in the form of moratorium and restructuring). We
anticipate the slippage ratio and credit costs will increase
because more weak loans could become NPAs. Nevertheless, they
should remain lower than the levels seen in fiscals 2018-2020.
"We expect IDBI Bank to take time to regain the market share lost
in the past few years when the bank was under PCA. We therefore
assess its business position as moderate.
"The negative outlook on IDBI Bank at the time of withdrawal
reflected weakening government support for the bank. We considered
this as a key transition risk for the rating over the next 12-18
months.
"We could have downgraded IDBI Bank if we believed government
support for the bank was likely to weaken substantially without a
corresponding improvement in the bank's SACP. We expected the
government support to weaken when the new strategic investor was
identified.
"We could have revised the outlook to stable if the government had
revisited its plan to sell its stake in IDBI Bank and maintained
its majority stake (either directly or via Life Insurance Corp.).
"Though it was unlikely in the next 12 months, we could have also
revised the outlook if IDBI Bank's SACP improved further. This
could have happened if: (1) the bank continued to improve its asset
quality and strengthened its risk management practices, such that
they were comparable to other large banks in the industry; or (2)
its capitalization improved such that the risk-adjusted capital
ratio remained above 7.25% on a sustained basis."
IL&FS TRANSPORTATION: Ind-Ra Affirms 'D' LT Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed IL&FS
Transportation Networks Limited's (ITNL) Long-Term Issuer Rating at
'IND D' and simultaneously migrated it to the non-cooperating
category. The issuer did not participate in the surveillance
exercise despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR8.00 mil. Non-convertible debentures (NCDs) (long-term)*
affirmed and migrated to Non-Cooperating Category with
IND D (ISSUER NOT COOPERATING) rating; and
-- INR1.19 mil. Long-term loan (long-term) due on December 31,
2018 affirmed and migrated to Non-Cooperating Category with
IND D (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING; Based on best available information
*Details in the annexure
KEY RATING DRIVERS
The affirmation reflects continued delays in debt servicing by
ITNL, owing to a tight liquidity position resulting from pending
receivables from various government authorities and delays in
undertaking deleveraging initiatives.
RATING SENSITIVITIES
Positive: Timely debt servicing for at least three consecutive
months could result in a positive rating action.
COMPANY PROFILE
ITNL is a surface transportation infrastructure company and the
largest private sector road operator in India under the
build-operate-transfer model.
INDIRA PRIYADARSHINI: Ind-Ra Keeps 'D+' Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Indira
Priyadarshini Hydro Power Private Limited's term loan in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR238.4 mil. Term loan (Long-term) due on August 2028
maintained in the non-cooperating category with IND D (ISSUER
NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING; the ratings were last reviewed on
March 14, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Indira Priyadarshini Hydro Power is sponsored by the Ind-Barath
group of companies, which is mainly engaged in the power
development business. The company was incorporated to set up a
4.8MW run-of-the-river hydel power plant in Kangra, Himachal
Pradesh.
JAMES & CO: Ind-Ra Assigns 'BB-' LT Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Rating and Research (Ind-Ra) has assigned James & Co. (JCO) a
Long-Term Issuer Rating of 'IND BB-'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR26.7 mil. Term loan due on October 2025 assigned with IND
BB-/Stable rating; and
-- INR96 mil. Fund-based facilities assigned with IND BB-/
Stable/IND A4+ rating.
KEY RATING DRIVERS
The ratings reflect JCO's small scale of operations, as reflected
by the revenue of INR1,062 million in FY21 (FY20: INR1,103.7
million; FY19: INR1,106 million). The revenue declined in FY21 due
to fewer orders received due to the COVID-19-led disruptions.
Ind-Ra expects the firm's revenue to improve in the medium term,
owing to the addition of new stores in mid-FY22. FY21 financials
are provisional in nature.
The rating also factors in JCO's modest EBITDA margin of 3.67% in
FY21 (FY20: 3.39%; FY19: 3.7%). The margin expanded slightly in
FY21 due to a fall in the variable expenses. The return on capital
employed stood at 18% in FY20 (FY19: 22%). Ind-Ra expects the
margin to remain modest, owing to high competition in the home
appliances retail segment.
Liquidity Indicator- Poor: The firm utilized an average of 92% of
its working capital limits during the 12-months ended March 2021.
There was overutilization of up to five days during September 2021.
Its cash flow from operations remained positive, although
deteriorated to INR4.23 million in FY20 (FY19: INR12.6 million) due
to a stretch in the working capital to INR126 million (INR107
million). The net working capital cycle deteriorated to 47 days in
FY21 (FY20: 42 days) owing to a reduction in the creditor days to
26 (44). The firm had a cash balance of INR1.69 million at FYE20
(FY19: INR8.25 million) and it availed of the Reserve Bank of
India-prescribed moratorium.
The ratings are also constrained by the firm's modest credit
metrics. Its interest coverage (operating EBITDAR/gross interest
expenses) deteriorated to 1.94x in FY20 (FY19: 2.1x) and the net
leverage (total adjusted net debt/operating EBITDAR) to 4.2x (3.6x)
due to a decline in the absolute EBITDA to INR37.3 million (INR41.2
million). Ind-Ra expects the credit metrics to remains modest in
the near-to-medium term owing to an increase in term debt to fund
the addition of the new outlets. JCO's interest coverage improved
to 3x in FY21 due to a reduction in interest expense to INR6.3
million (FY20: INR12.9 million).
The ratings are further constrained by JCO's partnership nature of
business.
The ratings, however, are supported by the promoters' over three
decades of experience in the retailing business.
RATING SENSITIVITIES
Positive: An increase in the scale of operations, while maintaining
the EBITDA margin leading to an improvement in credit metrics will
lead to positive rating action.
Negative: A decline in the scale of operations, leading to
deterioration in the credit metrics with the interest coverage
reducing below 1.4x, on a sustained basis, or a further stretch in
the liquidity position will lead to negative rating action.
COMPANY PROFILE
Incorporated in 2002, James and Co (JCO) is engaged in retailing
electrical, electronic goods and furniture items, and has 10 retail
outlets in south Tamil Nadu. The firm was started and led by James
Kanikkaraj.
JAMES RETAIL: Ind-Ra Assigns BB- LT Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Rating and Research (Ind-Ra) has assigned James Retail
Private Limited (JRPL) a Long-Term Issuer Rating of 'IND BB-'. The
Outlook is Stable.
The instrument-wise rating actions are:
-- INR40 mil. Term loan due on March 2023 assigned with IND BB-/
Stable rating; and
-- INR90 mil. Fund-based facilities assigned with IND BB-/Stable/
IND A4+ rating.
KEY RATING DRIVERS
The ratings reflect JRPL's small scale of operations, as reflected
by the revenue of INR647 million in FY21 (FY20: INR557 million;
FY19: INR214 million). The revenue improved in FY21 mainly due to
the addition of a store in Virudunagar (Tamil Nadu) and the
addition of two franchises in Madurai (Tamil Nadu). Ind-Ra expects
the firm's revenue to improve in the medium term, owing to the
further addition of new stores in mid-FY22. FY21 financials are
provisional in nature.
The ratings also factor in JRPL's modest EBITDA margin of 3.1% in
FY21 (FY20: 3.1%; FY19: 2.7%). The margin remained stable in FY21
due to stable input costs. The return on capital employed stood at
13% in FY21 (FY20: 13%; FY19: 11%). Ind-Ra expects the margin to
remain modest in the medium term, owing to high competition in the
home appliances retail segment.
Liquidity Indicator- Poor: The firm utilized an average 75% of its
working capital limits during the 12 months ended March 2021. Its
cash flow from operations turned positive to INR20 million in FY21
(FY20: negative INR38 million) due to an improvement in the working
capital cycle to 29 days (49 days) as a result of an improvement in
the creditor days to 47 (12). The firm had a cash balance of INR2
million at FYE21 (FY20: INR0.6 million; FY19: INR2.4 million) and
it availed of the Reserve Bank of India-prescribed moratorium on
term loan and fund-based facilities from March to August 2020.
The ratings are also constrained by the firm's modest credit
metrics. Its interest coverage (operating EBITDAR/gross interest
expenses) improved to 1.6x in FY21 (FY20: 1.4x) and the net
leverage (total adjusted net debt/operating EBITDAR) to 5.2x (6x)
due to an improvement in the absolute EBITDAR to INR30 million
(INR28 million). Ind-Ra expects the credit metrics to remains
modest in the near-to-medium term, owing to an increase in the term
debt to fund the addition of the new outlets.
The ratings, however, are supported by the promoters' over three
decades of experience in the retailing business.
RATING SENSITIVITIES
Positive: An improvement in the scale of operations, while
maintaining the EBITDAR margin, leading to an improvement in credit
metrics will lead to a positive rating action.
Negative: A decline in the scale of operations, leading to
deterioration in the credit metrics with the interest coverage
reducing below 1.4x, on a sustained basis, or a stretch in the
liquidity position will lead to a negative rating action.
COMPANY PROFILE
Incorporated in 2018, JRPL is engaged in retailing electrical,
electronic goods and furniture items. The firm has three retail
outlets in Tamil Nadu's Madurai and Virudunagar regions.
KAABA TRADING: CRISIL Keeps B Debt Rating in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Kaaba Trading
Private Limited (KTPL) continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.3 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with KTPL for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 KTPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KTPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
KTPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
KTPL was set up in 2005 by Mr. Sheikh Yezdani and his family
members. The company trades in imported raw cashews nuts. It
imports raw cashew from Indonesia, Ghana, Ivory Coast, and Nigeri.
The company is based in Vishakhapatnam (Andhra Pradesh).
KP POLYOLEFIN: Ind-Ra Affirms 'BB+' Long-Term Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed KP Polyolefin
Sacks Private Limited's (KPPSPL) Long-Term Issuer Rating at 'IND
BB+'. The Outlook is Stable.
The instrument-wise rating actions are:
-- INR96 mil. (reduced from INR110 mil.) Fund-based working
capital limit affirmed with IND BB+/Stable/IND A4+ rating;
-- INR30 mil. Non-fund-based working capital limit withdrawn (the
company did not proceed with the instrument as envisaged);
and
-- INR18.88 mil. Term loan due on May 2024 assigned with IND BB+/
Stable rating.
Change in Analytical Approach: Ind-Ra has changed its analytical
approach towards KPPSPL. The agency no longer factors in the
support provided to KPPSPL by its associate company, Krishnapatnam
Port Company Limited (KPCL; holds 28.17% stake in KPPSL) in view of
change in KPCL's shareholding, as the company is taken over by
Adani Ports and Special Economic Zone Limited ('IND AA+'/Stable).
Furthermore, KPCL has requested the lender to waive off the
corporate guarantee it had given for the entire debt of KPPSPL.
KEY RATING DRIVERS
The affirmation reflects KPPSPL's continued small scale of
operations, as indicated by revenue of INR441.53 million in FY21
(FY20: INR320.55 million). Ind-Ra expects the revenue to increase
in FY22 on account of higher demand for packaging products. In
FY21, the revenue increased on a yoy basis due to a rise in the
demand for packaging products during the year. The figures for FY21
are provisional in nature.
The ratings factor in KPPSPL's modest credit metrics due to modest
margins. Ind-Ra expect the credit metrics to deteriorate in FY22
on account of a decline in the operating margin. The metrics
improved in FY21 due to an increase in the absolute EBITDA to
INR64.62 million (FY20: INR17.42 million) along with a decline in
the total debt on account of the reduced working capital
utilization during the year. The gross interest coverage (operating
EBITDA/gross interest expense) was 7.16x in FY21 (FY20: 1.00x) and
the net financial leverage (adjusted net debt/operating EBITDA) was
1.14x (5.94x).
The ratings reflect KPPSPL's modest EBITDA margin due to intense
competition in the industry as well as the sharp volatility in raw
material prices. Ind-Ra expect the margin to decline in FY22 on
account of higher cost of operations. The margin improved to 14.64%
in FY21 (FY20: 5.43%) due to lower cost of operations. The ROCE was
14% in FY21 (FY20: negative ROCE).
Liquidity Indicator – Stretched: KPPSPL's average maximum
utilization of the fund-based limits was 78.10% for the 12 months
ended April 2021. The company's cash flow from operations increased
to INR36.44 million in FY21 (FY20: INR32.53 million) on account of
the increase in the absolute EBITDA. Also, KPPSPL's free cash flow
increased to INR32.29 million in FY21 (FY20: INR30.91 million). The
net cash cycle improved to 173 days in FY21 (FY20: 232 days) on
account of a decrease in the average receivable days to 77 days
(156 days). The company had unencumbered cash of INR0.58 million
in FY21 (FY20: INR0.27 million). Furthermore, the company does not
have any capital market exposure and relies on banks and financial
institutions to meet its funding requirements. KPPSPL had not
availed the Reserve Bank of India-prescribed moratorium.
The ratings, however continue to be supported by the usage of
KPPSPL's packaging products across various industries, including
fertilizers, food, sugar and textiles, thereby ensuring continuous
demand and offering protection from cyclicality in any one sector.
The ratings are also supported by the promoters' experience of over
a decade in the plastic industry.
RATING SENSITIVITIES
Negative: A decline in the scale of operations, leading to
deterioration in the credit metrics, with the interest coverage
falling below 1.8x, on a sustained basis, and/or pressure on the
liquidity position, will be negative for the ratings.
Positive: A substantial improvement in the scale of operations
while maintaining the credit metrics, along with an improvement in
the liquidity position, will be positive for the ratings.
COMPANY PROFILE
Incorporated in 2011, KPPSPL manufactures woven fabric, bags, sacks
and tarpaulin for cargo packaging. The company is promoted by KPCL
and Middle East Industrial Investment LLC. Its manufacturing
facility has an installed capacity of 6,500 metric tons per annum.
KURUNJI AGRO: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Kurunji Agro
Product (KAP) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 5.5 CRISIL D (Issuer Not
Cooperating)
Proposed Term Loan 1.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with KAP for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 KAP, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KAP
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
KAP continues to be 'CRISIL D Issuer Not Cooperating'.
KAP was set up in 2009 and commenced operations in 2013. Based in
Dindigul, Tamil Nadu, the firm manufactures mango pulp. It was set
up by Mr. S Palanisamy, Mr. S A Kadar. and Mr. A Muruganandham.
KVK BIO: Ind-Ra Keeps 'D+' Term Loan Rating in Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained KVK Bio Energy
Private Limited's term loan in the non-cooperating category. The
issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will continue to appear as
'IND D (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating action is:
-- INR35 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
March 27, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
KVK Bio Energy, sponsored by MMS Steel & Power Pvt Ltd (95% stake)
and KVK Energy & Infrastructure Private Limited (5% stake), owns a
15MW biomass-based power plant in Chhattisgarh.
LANCO KONDAPALLI: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Lanco
Kondapalli Power Limited (LKPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 105.55 CRISIL D (Issuer Not
Cooperating)
Letter of credit & 424.00 CRISIL D (Issuer Not
Bank Guarantee Cooperating)
Long Term Loan 3,015.00 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with LKPL for
obtaining information through letters and emails dated October 31,
2020 and April 28, 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 LKPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on LKPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
LKPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
LKPL is an independent power producer based at Kondapalli
Industrial Development Area near Vijayawada (Andhra Pradesh). The
company has installed capacity of 1,476.14 megawatt. LKPL was
promoted by the Lanco group; Eastern Generation Ltd, UK;
Commonwealth Development Corporation; and Doosan Heavy Engineering,
Korea. Phase I of the project was commissioned in October 2000 at
INR11,000 crore, Phase II in August 2010 at INR11,880 crore, and
Phase III in January 2016.
LORD WHEELS: CRISIL Keeps B Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Lord Wheels
Private Limited (LWPL) continue to be 'CRISIL B/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Long Term 1 CRISIL B/Stable (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 3 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with LWPL for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 LWPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on LWPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
LWPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
LWPL, incorporated in April 2015 by Meerut-based Veerbhan family,
Mr. Vedpal Singh, Mr. Pankaj Veerbhan, Mrs. Radhika Veerbhan. WPL
is an authorised dealer of passenger vehicles of Honda Cars India
Ltd (HCIL) in Dehradun.
LOVE KUSH: CRISIL Keeps B Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Love Kush
Foods Private Limited (LKFPL) continue to be 'CRISIL B/Stable
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B/Stable (Issuer Not
Cooperating)
Warehouse Financing 20 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with LKFPL for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 LKFPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on LKFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
LKFPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
LKFPL, set up in 2002 by Mr. Sunil Kumar, Mr. Jiwan Kumar, Mr.
Navjot Garg, and Mr. Prem Chand, mills basmati rice. Its
manufacturing unit in Patran, Punjab, has a milling capacity of 6
tonne per hour (tph) and a sorting capacity of 3 tph.
LUCKNOW HEALTHCITY: CRISIL Keeps B+ Rating in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Lucknow
Healthcity Trauma Centre and Superspeciality Hospital Private
Limited (LHPL) continues to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 9.5 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with LHPL for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 LHPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on LHPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
LHPL continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Incorporated in 2012 as a private limited company, LHPL is promoted
by a set of medical professionals led by Dr Sandeep Kapoor and Dr
Sandeep Garg. The company operates a 100-bed speciality hospital in
Lucknow. It provides primarily surgical care to patients across
orthopaedics, cardiology, urology, gastroenterology, internal
medicine, intensive care, medicine, neurology, and other emergency
services.
M/S ATASHA: Ind-Ra Keeps 'BB' LT Issuer Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained MS Atasha
Ashirwad Builders' Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR90.00 mil. Non-fund-based limits maintained in non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating; and
-- INR410.00 mil. Proposed non-fund-based limits withdrawn (the
company did not proceed with the instrument as envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 17, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 1995, AAB is a partnership firm registered as Class
1A contractor in Nagpur. The firm undertakes the construction of
roads, and buildings, and irrigation works for the government.
MAHALAXMI BUS: Ind-Ra Affirms 'BB-' Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Mahalaxmi Bus
Transport Pvt Ltd's (MBTPL) Long-Term Issuer Rating at 'IND BB-'.
The Outlook is Stable.
The instrument-wise rating action is:
-- INR132.86 mil. (reduced from INR166 mil.) Term loan due on
April 2025 affirmed with IND BB-/Stable rating.
KEY RATING DRIVERS
The affirmation reflects MBTPL's continued small scale of
operations, as indicated by revenue of INR382 million in FY20
(FY19: INR379.50 million). During 10MFY21, the company booked
revenue of INR253.65 million. The revenue is likely to have
declined by more than 15% yoy in FY21, with the pandemic-led
disruptions having led to a decline in the number of operational
buses. In FY20, the revenue grew only marginally on a yoy basis as
there were no additions to the number of buses (165 buses at
end-FY21).
The ratings reflect the modest EBITDA margins due to the nature of
the business. In FY21, the margins are likely to have increased on
a yoy basis because of a fall in the overall cost. During 10MFY21,
the company booked margins of 20.3%. In FY20, the margin had
declined to 7.75% in FY20 (FY19: 14.36%) due to an increase in
direct costs, including power and fuel, and repairs and maintenance
of the buses. The ROCE was 4.2% in FY20 (FY19: 14%).
The ratings are constrained by the weak credit metrics due to the
modest margins. The agency expects the overall credit metrics to
have improved in FY21 on the back of the improvement in the
absolute EBITDA and decline in the interest expenses, resulting
from a decline in the outstanding principal due to the scheduled
repayments of term loans. The metrics had deteriorated in FY20 due
to a fall in the absolute EBITDA to INR29.60 million (FY19:
INR54.50 million). In FY20, the interest coverage (operating
EBITDA/gross interest expense) was 1.6x (FY19: 1.6x) and the net
leverage (total adjusted net debt/operating EBITDAR) was 6.2x
(3.85x).
Liquidity Indicator - Stretched: MBTPL's overall liquidity position
remained tight due to repayment obligations. The cash and cash
equivalent had stood at INR3.50 million in FY20 (FY19: INR0.50
million) against scheduled repayments of INR15.7 million in FY21.
The cash flow operations rose to INR112.9 million in FY20 (FY19:
INR10.70 million) due to favorable changes in the working capital.
The company had outstanding interest-free borrowings of INR35
million from the promoter at FYE20 (FYE19: INR35 million). The
working capital cycle elongated to 23 days in FY20 (FY19: negative
four days) due to an increase in the debtor days to 31 days (12
days). The company is paid on the basis of the kilometers covered
by the buses on the assigned routes, and the bills are cleared
after verification from the Navi Mumbai Municipal Transport. The
bills are submitted after 10 days; 50% of the payments are received
within seven days, and the balance within 17-20 days. The company
had availed the Reserve Bank of India's debt moratorium during
March-July 2020, which was converted into a funded interest term
loan in August 2021.
The rating, however, is supported by the promotor's experience of
more than a decade in the dealership business through its group
companies.
RATING SENSITIVITIES
Negative: A decline in the revenue and/or margins, resulting in
further deterioration in the liquidity position and credit metrics,
with the net leverage sustaining above 3.5x, would be negative for
the ratings.
Positive: An increase in the revenue and/or margins, resulting in
an improvement in the liquidity and credit metrics, with the net
leverage falling below 3x, on a sustained basis, would be positive
for the ratings.
COMPANY PROFILE
MBTPL was formed in FY17. Its registered office is located at
Baramati, Maharashtra. The company undertakes the maintenance and
operation activities of Navi Mumbai Municipal Transport's 165
buses.
METENERE LIMITED: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Metenere
Limited continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Buyer Credit 35 CRISIL D (Issuer Not
Limit a Cooperating)
Buyer Credit 127.50 CRISIL D (Issuer Not
Limit b Cooperating)
Buyer Credit 10 CRISIL D (Issuer Not
Limit b Cooperating)
Buyer Credit 53 CRISIL D (Issuer Not
Limit c Cooperating)
Cash Creditd1 89.50 CRISIL D (Issuer Not
Cooperating)
Cash Credite 49 CRISIL D (Issuer Not
Cooperating)
Cash Creditf 50 CRISIL D (Issuer Not
Cooperating)
Cash Creditf 130 CRISIL D (Issuer Not
Cooperating)
Cash Creditf 95 CRISIL D (Issuer Not
Cooperating)
Cash Creditg 30 CRISIL D (Issuer Not
Cooperating)
Cash Credith 190 CRISIL D (Issuer Not
Cooperating)
Cash Crediti1 117 CRISIL D (Issuer Not
Cooperating)
Cash Creditj 117 CRISIL D (Issuer Not
Cooperating)
Cash Creditk 70 CRISIL D (Issuer Not
Cooperating)
Cash Creditl 50 CRISIL D (Issuer Not
Cooperating)
Cash Creditl 35 CRISIL D (Issuer Not
Cooperating)
Cash Credit 47 CRISIL D (Issuer Not
Cooperating)
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Letter of Creditm 75 CRISIL D (Issuer Not
Cooperating)
Letter of Creditm1 65 CRISIL D (Issuer Not
Cooperating)
Letter of Creditm1 40 CRISIL D (Issuer Not
Cooperating)
Letter of Creditm1 15 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 20 CRISIL D (Issuer Not
Cooperating)
Packing Credit in 60 CRISIL D (Issuer Not
Foreign Currency Cooperating)
Packing Credit in 12 CRISIL D (Issuer Not
Foreign Currency Cooperating)
Post Shipment 20 CRISIL D (Issuer Not
Credit Cooperating)
Post Shipment 6 CRISIL D (Issuer Not
Credit Cooperating)
Proposed Long Term 122.9 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Proposed Short Term 84.5 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 214.6 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Metenere for
obtaining information through letters and emails dated October 31,
2020 and April 28, 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 Metenere, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
Metenere is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of Metenere continues to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Incorporated in 1997, Metenere, promoted by Mr. Raman Gupta and his
family, began operations in lead recycling, and subsequently
diversified into manufacturing tin products. In fiscals 2009 and
2010, a new capacity to manufacture aluminium was set up.
Shrey Industries Pvt Ltd (SIPL), part of the Gupta group, was
merged with Metenere, effective April 1, 2012. SIPL manufactured
aluminium billets/extrusions, rods, and alloys from aluminium
scrap.
MONGA IRON: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Monga Iron
And Steel Private Limited (MISPL) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 6 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with MISPL for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 MISPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MISPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MISPL continues to be 'CRISIL D Issuer Not Cooperating'.
MISPL was set up in 1985 as a proprietorship firm, and was
reconstituted as a private limited company with the present name in
2008. The company trades in stainless steel products. Its
registered office is in New Delhi.
NATIONAL RICE: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of National Rice
Mill (NRM) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.89 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 1.62 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with NRM for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 NRM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NRM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
NRM continues to be 'CRISIL D Issuer Not Cooperating'.
Formed in 2006, NRM is engaged in milling and processing of par
boiled rice. It has an installed paddy milling capacity of 84
tonnes per day (increased from 72 tonnes per day). Its rice mill is
located in Hooghly (West Bengal). The day to day operations of the
firm is being managed by managing partners Mr. B .B. Dey. The other
partner, being his wife Mrs. Lekha Dey.
NILKANTH COTTON: CRISIL Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Nilkanth
Cotton Industries (NCI) continue to be 'CRISIL B+/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 3 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with NCI for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 NCI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NCI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
NCI continues to be 'CRISIL B+/Stable Issuer Not Cooperating'.
Set up in 2007 NCI is a partnership between Mr. Prahladbhai Patel,
Mr. Jethabhai Padhariya, Mr. Pragjibhai Padhariya, and Mr.
Vallabhbhai Padhariya. The firm has a cotton ginning unit at Dhasa
in Bhavnagar (Gujarat), with capacity of 200 bales per day. It also
has a cotton-seed oil crushing unit.
POWAI CUBICLES: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Powai Cubicles Private Limited
Unit No. 1601, Supremus Powai
Saki Naka Road
Powai, Mumbai
Maharashtra 400072
Insolvency Commencement Date: February 26, 2021
Court: National Company Law Tribunal, Nagpur Bench
Estimated date of closure of
insolvency resolution process: November 18, 2021
(180 days from commencement)
Insolvency professional: Mr. Umang Subhashchandra Khandelwal
Interim Resolution
Professional: Mr. Umang Subhashchandra Khandelwal
6AB, Mangaldeep Apartment
Plot no. 13/14 Farmland
Nr. Gurudwara, Ramdaspeth
Nagpur 440010
Maharashtra
E-mail: umang.khandelwal@gmail.com
- and -
Plot No. 1, Flat No. 201/202
Shiv Gaurav Estate Apartment
Near Traffic Park
Bhagwagar Layout, Dharampeth
Nagpur 440010
E-mail: rppcplimited@gmail.com
Last date for
submission of claims: June 5, 2021
PRAGATI EDUCATION: CRISIL Keeps B Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Pragati
Education Foundation (PEF) continue to be 'CRISIL B/Stable Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 8 CRISIL B/Stable (Issuer Not
Cooperating)
Proposed Term Loan 7 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with PEF for
obtaining information through letters and emails dated October 31,
2020 and April 20, 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 PEF, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PEF
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PEF continues to be 'CRISIL B/Stable Issuer Not Cooperating'.
PEF was set up as a society in 2005 in Raipur. Its operations are
currently managed by Mr. Rajeev Vora and Mr.Santosh Jain.The
society runs the Pragati College of Engineering & Management, which
was established in 2010 at Raipur; the college offers degree
courses in engineering.
R.S. CORPORATION: Ind-Ra Keeps BB- Issuer Rating in Non-Cooperating
-------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained R. S.
Corporation's Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND BB- (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR32 mil. Fund-based limits maintained in non-cooperating
category with IND BB- (ISSUER NOT COOPERATING)/IND A4+
(ISSUER NOT COOPERATING) rating;
-- INR30 mil. Non-fund-based limits maintained in non-cooperating
category with IND A4+ (ISSUER NOT COOPERATING) rating;
-- INR48 mil. Proposed fund-based limits withdrawn (the company
did not proceed with the instrument as envisaged); and
-- INR10 mil. Proposed non-fund-based limits withdrawn (the
company did not proceed with the instrument as envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 28, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Established in 1994, R. S. Corporation undertakes civil
construction projects in Gujarat. Pravin M Patel and Daxaben Patel
are the partners.
RADHA KRISHNA: CRISIL Keeps B Debt Rating in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Shree Radha
Krishna Vinimay Private Limited (SRKVPL) continues to be 'CRISIL
B/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2.5 CRISIL B/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SRKVPL for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 SRKVPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
SRKVPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of SRKVPL continues to be 'CRISIL B/Stable Issuer Not
Cooperating'.
SRKVPL, incorporated in 2012 in Ranchi (Jharkhand), trades in
steel, cement and high sea sales. The company is promoted by Mr.
Amit Sarawgi and Ms. Swati Sarawgi who has 15 years' experience in
trading of steel and cement products.
RAJDEEP TRADERS: CRISIL Reaffirms B+ Rating on INR5.0cr Loans
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on the
bank facilities of Rajdeep Traders (RT).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Overdraft Facility 0.4 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 4.6 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect RT's modest scale of operations and
working capital intensive operations along with modest financial
risk profile. These weaknesses are partially offset by its
extensive industry experience of the proprietor.
Key Rating Drivers & Detailed Description
Weaknesses:
* Modest scale of operations: Scale of operation is modest as
reflected by operating income of around INR2.3 crore in fiscal
2021. Also, the business risk profile is susceptible to inherent
cyclicality in automotive industry, linked to performance of the
economy. The same remains susceptible to change in government
policies catering to automobile industry like pollution norms,
electric vehicles etc.
* Working capital intensive operations and modest financial risk
profile: Due to its working capital intensive operations gross
current assets were over 180 days during the last three fiscals
ended March 31, 2021. Its large working capital requirements arise
from its high debtor and inventory levels. Due to its business
need, it hold large finished goods leading to inventory of around
100 days as on March 31, 2021.
RT's financial risk profile has continued to remain modest marked
by modest net worth estimated at around INR0.3 crore yielding total
outside liabilities to tangible net worth (TOL/TNW) of around 3.1
times in fiscal 2021.
Strength:
* Extensive industry experience of the proprietor: The proprietor
has extensive experience of over a decade in the auto components
trading industry. This has given him an understanding of the
dynamics of the market, and enabled them to establish relationships
with suppliers and customers.
Liquidity: Stretched
Average month end bank limit utilization is less than 50% for the
last 12 months ended March 2021 .Net cash accrual is expected at
less than INR10 lakh per annum over the medium term against no
major repayment obligations. Moderate current ratio at around 1.7
times as on March 31, 2021.
Outlook: Stable
CRISIL Ratings believe RT will continue to benefit from the
extensive experience of its promoter, and established relationships
with clients.
Rating Sensitivity factors
Upward Factors:
* Strong revenue growth while maintaining EBITDA margin of more
than 5%
* Efficient working capital management and maintenance of moderate
capital structure
Downward Factors:
* Major decline in revenues or operating margin falling below 3%
Stretch in working capital cycle or significant debt funded capex
RT setup in 1976, is engaged in trading & distributorship of two
wheeler spares and accessories. The product line comprises mainly
of two Wheeler Kick Parts, motorcycle indicator, motorcycle tail
light, LED motorcycle headlight etc. RT is owned & managed by Mr.
Rakesh Kumar Bothra. The firm is also a sole distributor of 'Final
Coat', a corrosion protection device in Tamilnadu, Puducheery and
Srilanka.
RAMSWAROOP MEMORIAL: Ind-Ra Keeps D Loan Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Shri Ramswaroop
Memorial Institute of Management and Computer Application's bank
loan ratings in the non-cooperating category. The issuer did not
participate in the rating exercise despite continuous requests and
follow-ups by the agency. Therefore, investors and other users are
advised to take appropriate caution while using the ratings. The
ratings will continue to appear as 'IND D (ISSUER NOT COOPERATING)'
on the agency's website.
The instrument-wise rating actions are:
-- INR190 mil. Term loans (Long term) due on September 2019
maintained in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating; and
-- INR50 mil. Fund-based working capital facility (Long term)
maintained in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The rating was last reviewed on June
9, 2016. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the rating.
COMPANY PROFILE
Shri Ramswaroop Memorial Institute of Management and Computer
Application manages the Shri Ramswaroop Memorial Group of
Professional Colleges and Shri Ramswaroop Memorial Public School.
RAVELS APPARELS: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ravels
Apparels Private Limited (RAPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 3.5 CRISIL D (Issuer Not
Cooperating)
Export Packing Credit 3.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RAPL for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 RAPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RAPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RAPL continues to be 'CRISIL D Issuer Not Cooperating'.
Set up in 1983 as a partnership firm, Ravels International, it was
reconstituted as a private limited company with the current name in
July 1993. RAPL is promoted by Mr. Vinod Kapahi and family.
REVIVE CONSTRUCTION: CRISIL Reaffirms B+ Rating on INR37cr Loan
---------------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on the bank facilities of
Revive Construction Company India Private Limited (RCCIPL) at
'CRISIL B+/Stable/CRISIL A4'
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 22 CRISIL A4 (Reaffirmed)
Cash Credit 16 CRISIL B+/Stable (Reaffirmed)
Overdraft Facility 25 CRISIL A4 (Reaffirmed)
Proposed Working
Capital Facility 37 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect RCCIPL's susceptibility to
tender-based operations, working capital intensive operations and
modest financial risk profile. These rating weaknesses are
partially offset by extensive industry experience of the
promoters.
Analytical Approach
USL of around INR20.76 crore has been treated as neither debt nor
equity (NDNE). As it is expected to stay over the medium term.
Also, management has given requisite undertaking in line with
CRISIL's analytical approach for the same.
Key Rating Drivers & Detailed Description
Weakness:
* Susceptibility to tender-based operations: Revenue and
profitability entirely depend on the ability to win tenders. Also,
entities in this segment face intense competition, thus requiring
to bid aggressively to get contracts, which restricts the operating
margin to a moderate level. Also, given the cyclicality inherent in
the construction industry, the ability to maintain profitability
margin through operating efficiency becomes critical.
* Working capital intensive operations and modest Financial Risk
Profile: Estimated gross current assets were at 1384-745 days over
the three fiscals ended March 31, 2021. Working capital requirement
is intense due to high debtor days owing to involvement with
government tenders. Also due to nature of business, large work in
process & inventory is maintained.
* High dependency on external working capital borrowings to manage
intense working capital has led to modest financial risk profile
marked by modest gearing and TOL/TNW estimated at 2.46 times and
1.9 times respectively in fiscal 2021. Further, leverage in capital
structure or increase in external borrowings will remain key rating
sensitivity factor.
Strength:
* Extensive industry experience of the promoters: The promoters
have an experience of over 25 years in civil construction industry.
This has given them an understanding of the dynamics of the market,
and enabled them to establish relationships with suppliers and
customers.
Liquidity: Stretched
Average month end bank limit utilization for the last 12 months
ended on March, 2021 has been moderate at less than 85%. Expected
net cash accruals in the range of INR5.3 crore is sufficient
against repayment obligations of less than INR1.6 crore. Current
ratio is moderate at around 1.4 times as on 31st March, 2021.
Liquidity is supported by need based unsecured loan of around INR20
crore from the promoters.
Outlook: Stable
CRISIL Ratings believe RCCIPL will continue to benefit from the
extensive experience of its promoter, and established relationships
with clients.
Rating Sensitivity Factors
Upward Factors:
* Strong revenue growth while sustaining moderate operating margin
* Improvement in working capital management with gross current
asset days of less than 500 days and maintenance of moderate
capital structure with gearing of less than 2 times
Downward Factors:
* Decline in revenue growth or significant drop in operating
margin
* Further stretch in working capital cycle or significant external
borrowing resulting in gearing of more than 3.5 times
RCCIPL was incorporated in 2009. It is engaged in civil
construction works such as construction of roads, bridges, tunnels
projects, office buildings, etc for government entities & private
players located in Kerala. It is based in Thiruvananthapuram-
Kerala and promoted by Mr. Abdul Rahuman Nazarudeen and Mr.
Naseerkhan Abdulrassak.
RUKMINI SILK: CRISIL Lowers Rating on INR12cr Loans to D
--------------------------------------------------------
CRISIL Ratings has downgraded its rating on the bank facilities of
Sree Rukmini Silk Emporium (SRSE) to 'CRISIL D' from 'CRISIL
B+/Stable'. The ratings reflect delays in servicing of debt
obligations.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Bank 2.1 CRISIL D (Downgraded from
Facility 'CRISIL B+/Stable')
Secured Overdraft 9.9 CRISIL D (Downgraded from
Facility 'CRISIL B+/Stable')
The rating reflects the firm's modest scale of operations and
average financial risk profile. These weaknesses are partially
offset by the extensive industry experience of the partners.
Key Rating Drivers & Detailed Description
Weakness:
* Delay in debt servicing: Due to stretched liquidity, there has
been delays in servicing of debt obligation. The firm has availed
INR1 crore of adhoc facilities to support liquidity.
* Modest scale of operations: Business risk profile is constrained
by subdued scale in the intensely competitive textiles (readymade
garments) industry. Operating revenue was INR45.6 crore in fiscal
2020 and is expected to decline marginally owing to Covid-19. Also,
the industry is highly fragmented due to the presence of many
unorganized players. This limits pricing flexibility and bargaining
power of the players. Hence, the firm's operating margin has been
4.35-5.62% in the three fiscals through 2020.
* Average financial risk profile: Gearing and total outside
liabilities to adjusted networth ratio were weak at 2.24 times and
4.41 times, respectively, as on March 31, 2020. Networth remained
small at INR4.55 crore on account of significant capital
withdrawal. Interest coverage ratio was comfortable at 1.97 times
while net cash accrual to total debt ratio remained negative at
(0.19) time, for fiscal 2020.
Strengths:
* Extensive experience of the partners: Presence of more than three
decades in textiles industry has enabled the partners to understand
market dynamics and establish strong relationships with suppliers
and customers.
Liquidity: Poor
The liquidity is poor marked with delay in servicing of debt
obligation. The firm has availed adhoc limits to support
liquidity.
Rating Sensitivity factors
Upward factor
* Track record of timely debt servicing for atleast over 90 days
* Improvement in working capital cycle
Established in 2017 in Andhra Pradesh as a partnership firm by Mr.
G Sreedhar Babu and family, SRSE manufactures silk sarees.
SAIBABA SOLVENT: Ind-Ra Keeps BB- Issuer Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Saibaba Solvent
Industries LLP's Long-Term Issuer Rating in the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND BB- (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR52.79 mil. Term loan due on March 2022 maintained in non-
cooperating category with IND BB- (ISSUER NOT COOPERATING)
rating;
-- INR25 mil. Fund-based limits maintained in non-cooperating
category with IND BB- (ISSUER NOT COOPERATING) rating;
-- INR0.73 mil. Non-fund-based limits maintained in non-
cooperating category with IND A4+ (ISSUER NOT COOPERATING)
rating; and
-- INR109.2 mil. Proposed fund–based limits withdrawn (the
company did not proceed with the instrument as envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 16, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated in July 2014, Saibaba Solvent Industries manufactures
rice bran crude oil and de-oiled cakes in Nagpur. The firm is
partnered by Santulal Kewalram Jamtani, Pradeep Sushilkumar Saraogi
and Lata Tulsidas Tajpuria.
SAMALESWARI EDUCATION: CRISIL Keeps B- Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Samaleswari
Education Trust (SET) continue to be 'CRISIL B-/Stable Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 9.8 CRISIL B-/Stable (Issuer Not
Bank Loan Facility Cooperating)
Rupee Term Loan 8 CRISIL B-/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SET for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 SET, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SET
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SET continues to be 'CRISIL B-/Stable Issuer Not Cooperating'.
Set up in 2008, SET operates an engineering institute, Silicon
Institute of Technology, which provides an engineering degree
(Bachelor of Technology) in five streams: computer science, civil,
electrical, electronics and communication, and mechanical. The
institute is located in Sambalpur. It is affiliated to the Biju
Patnaik University of Technology and all its courses are approved
by the All India Council for Technical Education. Currently, the
trust is managed by Mr. Ramanand Mishra, managing trustee, and Mr.
Sanjeev Nayak, vice chairperson.
SARE FACILITY: Insolvency Resolution Process Case Summary
---------------------------------------------------------
Debtor: Sare Facility (Gurgaon) Services Private Limited
6, 383 C
Bank Street, Munirka
New Delhi 110067
India
Insolvency Commencement Date: May 17, 2021
Court: National Company Law Tribunal, New Delhi Bench
Estimated date of closure of
insolvency resolution process: November 13, 2021
Insolvency professional: Bikram Singh Gusain
Interim Resolution
Professional: Bikram Singh Gusain
B-1/105, Sunrise Apartments
Dr. K N Katju Marg
Sector 13, Rohini
Delhi 110085
E-mail: bikramgusain@gmail.com
- and -
C/o Yogakshem Insolvency
Professionals LLP
UGF 1/15, Near PNB
Tilak Nagar
New Delhi 110018
E-mail: cirpsarefacility@yahoo.com
Last date for
submission of claims: June 2, 2021
SIKKO INDUSTRIES: Ind-Ra Keeps B+ Issuer Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Sikko Industries
Limited's Long-Term Issuer Rating in the non-cooperating category.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will continue to appear as
'IND B+ (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR70 mil. Fund based limits maintained in non-cooperating
category with IND B+ (ISSUER NOT COOPERATING)/IND A4 (ISSUER
NOT COOPERATING) rating; and
-- INR30 mil. Proposed fund-based limits withdrawn (the company
did not proceed with the instrument as envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 28, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Ahmadabad-based Sikko Industries is a proprietorship firm founded
by Jayantibhai Kumbhani in 1997. The company manufactures knapsack
sprayers used for spraying pesticides.
SINDHU CARGO: Ind-Ra Keeps BB+ LT Issuer Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Sindhu Cargo
Services Private Limited's Long-Term Issuer Rating in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR450 mil. Fund-based limits maintained to non-cooperating
category with IND BB+ (ISSUER NOT COOPERATING) rating;
-- INR20 mil. Non-fund-based limits maintained to non-cooperating
category with IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR530 mil. Proposed fund-based limits withdrawn (the company
did not proceed with the instrument as envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 4, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Sindhu Cargo Services was incorporated in 1987 and provides
diversified logistic services such as custom clearing, freight
forwarding, transportation, warehousing, and supply chain
management, among others through air, water and land.
SOUTH EAST: Ind-Ra Keeps 'D' Bank Loan Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained South East U.P.
Power Transmission Company Limited's senior project bank loans'
rating in the non-cooperating category. The issuer did not
participate in the rating exercise despite continuous requests and
follow-ups by the agency. Therefore, investors and other users are
advised to take appropriate caution while using the rating. The
rating will continue to appear as 'IND D (ISSUER NOT COOPERATING)'
on the agency's website.
The detailed rating action is:
-- INR37.132 bil. Senior project bank loans (long-term)
maintained in non-cooperating category with IND D (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on May
25, 2018. Ind-Ra is unable to provide an update, as the agency does
not have adequate information to review the ratings.
COMPANY PROFILE
Incorporated on September 11, 2009, South East U.P. Power
Transmission Company is a wholly owned subsidiary of Mainpuri Power
Transmission Private Limited.
SUKATA TRACTOR: Ind-Ra Keeps B+ Issuer Rating in Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Sukata Tractor
Parts Private Limited's Long-Term Issuer Rating in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND B+ (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR62.50 mil. Fund-based working capital limits maintained in
non-cooperating category with IND B+ (ISSUER NOT
COOPERATING)/IND A4 (ISSUER NOT COOPERATING) rating;
-- INR10 mil. Proposed term loan withdrawn (the company did not
proceed with the instrument as envisaged); and
-- INR1.99 mil. Term loans due on November 2021 maintained in
non-cooperating category with IND B+ (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 3, 2018. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
COMPANY PROFILE
Sukata Tractor Parts was incorporated in April 1996 and
manufactures rail coach components and tractor parts.
SUMERU PROCESSORS: Ind-Ra Keeps D Issuer Rating in Non-Cooperating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Sumeru
Processors Private Limited's Long-Term Issuer Rating in the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
continue to appear as 'IND D (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR100 mil. Fund-based working capital limits (long-
term/short-term) maintained to non-cooperating category with
IND D (ISSUER NOT COOPERATING) rating;
-- INR50 mil. Proposed fund-based limit (long-term) withdrawn
(the company did not proceed with the instrument as
envisaged); and
-- INR50 mil. Proposed non-fund-based limit(short-term) withdrawn
(the company did not proceed with the instrument as
envisaged).
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 12, 2020. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.
COMPANY PROFILE
Sumeru Processors was incorporated in 1986 by Dhiren Navlakha,
Farhad Suri and their families. The company commenced operations as
a trader for lime and other mineral products, but is now engaged in
product distribution for Nestle India Ltd. and ITC Limited. In
addition, it manages Nestle India's vending work in Delhi National
Capital Region.
T G R PROJECTS: CRISIL Reaffirms B Rating on INR32cr Loans
----------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on the bank facilities of
T G R Projects India Private Limited (TGRPL) at 'CRISIL B/Stable'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 20.5 CRISIL B/Stable (Reaffirmed)
Proposed Term Loan 11.5 CRISIL B/Stable (Reaffirmed)
The rating continues to reflect the geographic concentration in
revenue, demand risk with the current project and susceptibility to
inherent cyclicality in India's real estate sector. These rating
weaknesses are partially offset by extensive experience of the
promoters in the real estate development industry and track record
of the company in executing residential projects in Bengaluru.
Key Rating Drivers & Detailed Description
* Geographic concentration in revenue and demand risk: The ongoing
sole project expose to events such as slowdown in the
infrastructure spending in Bengaluru or policy regulations may
affect the sales progress along with the second intensified wave of
the pandemic coupled with the company's high exposure to Bengaluru,
which is severely impacted would remain a monitorable. With around
95% of construction completion and around 50% booking progress, the
project remains exposed to risks related to demand.
* Susceptibility to inherent cyclicality in India's real estate
sector: India's real estate sector is characterized by swinging
fortunes and severe cyclicality, apart from being largely
unregulated. Though TGRPL commands a good reputation in Bangalore,
which partially mitigates the aforesaid risk, it shall remain
vulnerable to industry upswings and downtrends, apart from
increasing regulation by governmental authorities.
Strengths:
* Promoters' extensive experience: Promoters of TGRPL have been
engaged in the real estate business for close to two decades,
especially in and around Bangalore with an extensive experience,
that the promoters have developed industry insight in the company's
area of operations.
* Track record of the company in executing residential projects in
Bangalore: The company has successfully completed 11 projects in
Bengaluru, where it is also undertaking its ongoing project. The
proven track record is expected to keep the company in good stead
as it constructs and sells units in its ongoing projects.
Liquidity: Stretched
TGRPL to fund the construction of its ongoing project through a mix
of customer advances, unsecured loans and bank loan. The company
has availed bank loans of INR32 crores and made prepayment of loans
to the extent of INR11.5 crores in fiscal 2021. Advances from
customers will continue to remain a monitorable, especially with
the ongoing second wave of Covid-19. Support from promoters in form
of unsecured loans are likely to continue over the medium term.
Outlook Stable
CRISIL Ratings believes TGRPL will benefit over the medium term
from its promoters' extensive experience in the real estate
business.
Rating Sensitivity factors
Upward factors:
* Significant improvement in debt service coverage ratio (DSCR) to
over 2 times, supported by substantially higher-than-anticipated
cash flow
* Early completion of projects and higher customer advances,
leading to substantial cash flows
Downward Factors:
* Drawdown of more-than-expected debt or cost overrun, leading to
drop in DSCR to below 1 times.
* Weak cash flows from operations because of subdued response,
delay in completion of, projects, thereby weakening financial risk
profile, particularly liquidity.
Bengaluru (Karnataka) based, TGRPL was incorporated in the year
2012 by Mr. Gopal Reddy, Mr. Aravind Reddy, Mrs. G. Aruna Devi, Mr.
Mansukhlal Patel, Mr. G. Anand and others. The company began
commercial operation in 2014 and is currently engaged in the
construction of residential apartments in Bangalore.
TANVIRKUMAR & CO: CRISIL Reaffirms B+ Rating on INR14.6cr Loan
--------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable/CRISIL A4'
ratings on the bank facilities of Tanvirkumar & Co (TKC).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Post Shipment
Credit 49.9 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 14.6 CRISIL B+/Stable (Reaffirmed)
The ratings continue to reflect large working capital requirement
and susceptibility to volatile diamond prices amidst intense
competition resulting in moderate operating profit margins. These
weaknesses are partially offset by the extensive experience of the
partners in the diamond industry and their timely funding support.
Analytical Approach
Unsecured loans from partners and related parties of around INR5
crore as on March 31, 2021 have been treated as neither debt nor
equity as it is expected to be retained over the medium term
Key Rating Drivers & Detailed Description
Weakness:
* Large working capital requirement: Operations continue to remain
working capital intensive, as reflected in gross current asset
(GCA) estimated at 460 days as on March 31, 2021 which emanates
from receivable cycle of 210 days and inventory of 250 days.
Improvement in the working capital cycle on the back of healthy
sales traction over the medium term will be key rating sensitivity
factor.
* Susceptibility to volatile diamond prices amidst intense
competition resulting in moderate operating profit margins:
The diamond industry is highly fragmented because of low entry
barriers on account of relatively low capital and technology
requirements, attracting numerous un-organised players across the
country. TKC is also exposed to risks related to volatility in
diamond prices. The firm maintains inventory of diamonds which
makes the firm vulnerable to fluctuation in diamond prices.
Accordingly, the operating profitability has been moderate at
around 3-5% over the last five fiscals through 2021.
Strengths:
* Extensive industry experience of the partners and their timely
funding support: The five-decade-long experience of the partners in
the diamond industry, and their longstanding relationships with
customers and suppliers, have helped the firm successfully navigate
business cycles over the years. Further, partners have provided
timely funding to support liquidity of the firm. Benefits from the
extensive industry experience of the partners would continue over
the medium term.
Liquidity: Stretched
Liquidity of the firm is marked by moderate cash accruals of over
INR1 crore in fiscal 2022 and fiscal 2023 against repayment
obligation of INR12 lakhs in fiscal 2022. Firm has access to fund
based bank lines of INR49.9 crore utilised to the tune of 92% over
the last 12 months ended December 2020. CRISIL Ratings has also
taken into cognizance, extensions being granted by the bankers in
the export credit facilities, as permitted by the Reserve Bank of
India (RBI). Timely funding support from partner is expected to
continue over the medium term.
Outlook: Stable
CRISIL Ratings believes TKC will continue to benefit over the
medium term from the extensive experience of partners.
Rating Sensitivity factors
Upward factors
* Sustained growth in revenues along with stable operating margins
leading to cash accruals of over INR1.5 crore
* Significant and sustained improvement in working capital cycle
Downward factors
* Decline in operating margin leading to interest coverage of below
1 time
* More than expected capital withdrawal or increase in working
capital requirement
TKC (formerly, Milan Jewellers) was set up in 1976 by Mr. Tanvir
Kirtilal Chokshi and Mr. Kamlesh Jhaveri. Currently, Mr. Milan
Choksi, Mr. Mihir Jhaveri, Mr. Shanay Choksi, and Mr. Nailesh
Choksi are the key partners. The firm manufactures and trades in
polished diamonds and diamond-studded jewellery, through its retail
outlet, under the brand Moksh.
TERMINUS KG: Ind-Ra Assigns & Withdraws 'BB+' Term Loan Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Terminus KG
Ventures Private Limited (TKGV) a Long-Term Issuer Rating to 'IND
BB+' with a Stable Outlook while downgrading the term loan rating
as follows:
-- INR850 mil. Term loan* coupon rate 10.55% due on June 30, 2023
downgraded and assigned with IND BB+/Stable rating.
*Rating downgraded to 'Provisional IND BB+'/Stable before being
assigned a final 'IND BB+'/Stable. The assignment of final rating
follows the receipt of final loan documents in line with the draft
documents received by the agency.
KEY RATING DRIVERS
Lower-than-expected Sales: The ongoing COVID-19 outbreak led to a
considerable decline in sales in FY21 (FY20: 142,903sf), where the
company managed to sell only 9,500sf of the saleable area in its
project ONEWEST, reflecting a substantial decline in the project's
sales velocity. However, the project has already sold about 75% of
its total saleable area. On March 31, 2021, the total area sold in
the project was about 611,060sf (FYE20: 601,560sf) out of total
saleable area of 812,493sf (developer's share). The company is
likely to realize a total revenue of INR3,118 million from the sold
units, of which INR766 million remains to be collected. The market
value of the unsold inventory stood at about INR1,028 million on
March 31, 2021. The remaining collections from the already sold
units are likely to be almost enough to fund the balance
construction cost. However, a material portion of the receivables
is likely to be realized after the receipt of the occupancy
certificate, The company has already applied for an occupancy
certificate but the receipt may get delayed due to the pandemic.
Additionally, as per the sanction letter, the company has a
principal debt repayment liability of INR250 million by FYE22.
COVID-19 Impact on Real Estate Industry: The office segment of the
real estate sector is one of the hardest hit segment of the economy
due to the COVID-19 outbreak. Continuous lockdowns and the shortage
of labor have hit many developers, which has adversely impacted the
market, resulting in lower sales across the various segments of the
industry.
Sales Cancellation Risk: Of the total sales of INR3,118 million at
FYE21, INR222 million of sales were accompanied by less than 20% of
the agreement value being paid and thus remain vulnerable to
cancellation risk. However, as the real estate prices in the
vicinity of the project have increased considerably over the last
few years, the buyers will likely lose significant capital gain
opportunity by cancelling the booking and there is a high chance
that these buyers will be replaced by higher paying buyers, in
Ind-Ra's opinion.
Small Scale of Operations and Project Concentration Risk: The
company is solely dependent upon a single project with the total
revenue of INR4,146 million, according to Ind-Ra's estimates.
Key Man Risk: The company, being a privately held one, is heavily
dependent upon its promoter S. Prabhakar Reddy.
Cyclicality and Regulatory Risk: The Indian real estate industry is
highly cyclical with volatile cash flows. The sector is also
subject to multiple regulatory approvals; thus, the timely receipt
of regulatory approval is critical for the timely launches of new
projects and future sales/collections.
Liquidity Indicator - Stretched: TKGV received a sanction for
INR850 million loan in September 2020 to fund the ONEWEST project.
The company is unlikely to face any liquidity issues so long as it
receives the occupancy certificate on time and it continues to
avail disbursements from the bank. However, any delays in receiving
the occupancy certificate/the collection of receivables or any
changes in banking facilities could result in financial stress.
Presence of a Strong Anchor Tenant: TKGV has signed an agreement to
lease 613,774sf of office space to ADP Private Limited. ADP has
retained an option to lease another 96,764sf and can exercise the
option any time before January 2023. The agreement with ADP is
likely to ensure around 10% rental yield for the buyers of the
project. In addition, the presence of ADP as an anchor tenant is
likely to help TKGV win other lessees and ensure high occupancy.
Favorable Project Location: According to Cushman & Wakefield 1Q21
report, Hyderabad's office market reported gross leasing of over
1.0 million sf, up 15% qoq, reflecting a sustained recovery in the
leasing activity in the office market. However, the gross leasing
fell 40% on an annual basis. The vacancy level across the city was
13% in 1Q21, reflecting a 450bp qoq increase, largely driven by a
new supply. Despite rising vacancies, rentals have remained stable
over the three months ended March 2021. Modern infrastructure,
urban lifestyle and affordable real estate prices have been the key
reasons behind the resurgence in the Hyderabad's real estate
market. Moreover, the project is located close to the commercial
hubs of Hyderabad namely HITEC City and Financial District.
Besides, the project is adjacent to the Outer Ring Road, which
provides excellent connectivity to other parts of the city.
RATING SENSITIVITIES
Positive: The timely receipt of the occupancy certificate, an
improvement in the sales and collection and/or an improvement in
the liquidity could result in a rating upgrade.
Negative: Significant delays in the receipt of an occupancy
certificate, further deterioration in the sales and collection
and/or further deterioration in the liquidity could result in a
rating downgrade.
COMPANY PROFILE
TKGV is building ONEWEST project in Nanakramguda in Hyderabad,
close to Hyderabad's financial district, which houses several large
companies mostly operating in the finance and technology sectors.
The project envisages an office complex at a total cost of INR3,410
million (excluding land cost). The total proposed built-up area for
the project is about 12,04,298sf, consisting of G+3 stilt+21
floors. The project will have a total saleable area of 960,000sf.
Of this, 812,493sf will belong to TKGV while the rest to joint
development agreement partners.
UTTAMENERGY LIMITED: Ind-Ra Moves 'BB+' Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Uttamenergy
Limited's (Uttam) Long-Term Issuer Rating of 'IND BB+' to the
non-cooperating category and has simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR61.7 mil. Long-term loans^ due on January 2022 - June 2033
migrated to non-cooperating category and withdrawn;
-- INR200 mil. Fund-based working capital limit* migrated to non-
cooperating category and withdrawn; and
-- INR630 mil. Non-fund-based working capital limit# migrated to
non-cooperating category and withdrawn.
^ Migrated to 'IND BB+ (ISSUER NOT COOPERATING)' before being
withdrawn
* Migrated to 'IND BB+ (ISSUER NOT COOPERATING)'/'IND A4+ (ISSUER
NOT COOPERATING)' before being withdrawn
# Migrated to 'IND A4+ (ISSUER NOT COOPERATING)' before being
withdrawn
KEY RATING DRIVERS
Ind-Ra is no longer required to maintain the ratings, as it has
received a no-objection certificate from the rated facilities'
lender. This is consistent with the Securities and Exchange Board
of India's circular dated March 31, 2017 for credit rating
agencies. Ind-Ra will no longer provide rating or analytical
coverage for Uttam.
COMPANY PROFILE
Incorporated in 2012, Uttam manufactures industrial boilers and
provides erection, installation, and commissioning for the
boilers.
VRV FOODS: Ind-Ra Moves 'D' LT Issuer Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated VRV Foods
Limited's (VRVFL) Long-Term Issuer Rating of 'IND D' to the
non-cooperating category and has simultaneously withdrawn it.
The instrument-wise rating actions are:
-- INR30.5 mil. Fund-based working capital limit (long-term)*
migrated to non-cooperating category and withdrawn;
-- INR70.6 mil. Working capital term loan (long-term)* due on
March 2022 migrated to non-cooperating category and
withdrawn; and
-- INR140 mil. Non-fund-based limits (short-term)# migrated to
non-cooperating category and withdrawn.
* Migrated to 'IND D (ISSUER NOT COOPERATING)' before being
withdrawn
# Migrated to 'IND D (ISSUER NOT COOPERATING)' before being
withdrawn.
Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
April 3, 2020. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.
KEY RATING DRIVERS
The ratings have been migrated to the non-cooperating category as
VRVFL did not participate in the rating exercise despite continuous
requests and follow-ups by Ind-Ra.
Ind-Ra is no longer required to maintain the ratings, as it has
received a no-objection certificate from the rated facilities'
lender. This is consistent with the Securities and Exchange Board
of India's circular dated March 31, 2017 for credit rating
agencies.
COMPANY PROFILE
Incorporated in 1992, VRVFL is engaged in the bottling of
Indian-made foreign liquor and trading of edible oils.
YAK GRANITE: CRISIL Keeps C Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Yak Granite
Industries Private Limited (YGIPL) continue to be 'CRISIL C/CRISIL
A4 Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.25 CRISIL A4 (Issuer Not
Cooperating)
Cash Credit 6.00 CRISIL C (Issuer Not
Cooperating)
Letter of Credit 0.25 CRISIL A4 (Issuer Not
Cooperating)
Proposed Long Term 1.50 CRISIL C (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with YGIPL for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 YGIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on YGIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
YGIPL continues to be 'CRISIL C/CRISIL A4 Issuer Not Cooperating'.
Set up in 1982 by Mr. Badri Narayan, YGIPL processes rough granite
blocks, monuments, and granite slabs. Operations are managed by Mr.
Narayan.
ZERO MICROFINANCE: CRISIL Keeps B- Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Zero
Microfinance and Savings Support Foundation (ZMF, a part of the ALW
group) continues to be 'CRISIL B-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 15 CRISIL B-/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with ZMF for
obtaining information through letters and emails dated October 24,
2020 and April 20, 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 ZMF, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ZMF
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ZMF continues to be 'CRISIL B-/Stable Issuer Not Cooperating'.
For arriving at the rating, CRISIL Ratings has consolidated the
business and financial risk profiles of ZMF and A Little World
Private Limited (ALW). This is because both entities, together
referred to as the ALW group, are managed by the same promoters and
have common business. There is large financial support extended by
ALW to ZMF. Both entities are expected to be merged over the near
to medium term.
ALW, incorporated in 2000, is engaged in developing and providing
licensed technology for enabling smart cards and other electronic
technology-based commerce, electronic-identity systems, and trading
and delivery systems. ZMF operates as one of the largest business
correspondents for State Bank of India (SBI, rated 'CRISIL
AAA/CRISIL AA+/FAAA/Stable/CRISIL A1+') and is engaged in the
extension of banking services in the rural and urban areas of India
where banking penetration is limited. The group is managed and
operated by Mr. Anurag Gupta.
=========
J A P A N
=========
JAPAN: Pandemic-Related Bankruptcies Hit 1,500 Since Feb. 2020
--------------------------------------------------------------
NHKNews reports that new figures reveal that 1,500 companies in
Japan have gone under due to the coronavirus pandemic since
February of last year.
According to NHKNews, credit research firm Teikoku Databank said
the businesses have either already declared bankruptcy, or closed
down to prepare for liquidation proceedings.
The dining industry has been the hardest-hit, with 250 businesses
failing. It is followed by construction with 140, and accommodation
with 89, NHKNews discloses.
Monthly totals have been rising since January. That's when the
second coronavirus state of emergency started for the Greater Tokyo
Area.
NHKNews relates that Teikoku Databank said the effects on dining
and accommodation companies are spreading to related industries.
When one hotel shutters, small and mid-sized contractors
specializing in repairs and electrical work often also have to
close.
The research firm adds the number of bankruptcies could climb even
higher now that a third state of emergency for Tokyo and other
areas looks set to be extended, NHKNews relays.
=====================
N E W Z E A L A N D
=====================
DENTAL CARE: Nearly 2,000 Patients 'Ripped Off' After Collapse
--------------------------------------------------------------
New Zealand Herald reports that nearly 2,000 people in desperate
need of dental care claim they have been "ripped off" after a
company owning a dozen clinics across Auckland went into
receivership.
Katherine Campbell is one, the report says. The 19-year-old's
braces, which her mum paid NZD6,500 for, have been causing
excruciating pain.
But after the company's collapse in October, she has been unable to
receive any of the follow-up care her mum paid for.
"I feel like somebody has punched me in the jaw . . . I need help
and they won't give it to me and now we just want our money back
but we can't get a refund," Campbell told the Herald on Sunday.
According to the report, the Papakura teen had been seeing an
orthodontist at Manukau Smilecare before the company that owned it,
Dental Care Group Limited, went under.
It also owned seven other Auckland clinics and four mobile dental
stations, some with Government-funded district health board
contracts to provide care to secondary schools.
All have since been sold and it's understood the purchaser of some
of the clinics entered into new contracts with the DHBs,
PricewaterhouseCoopers (PwC) receiver John Fisk said, according to
the report.
NZ Herald relates that Mr. Fisk confirmed to the Herald on Sunday
that 1661 patients who made prepayments before the company went
into receivership were owed a total of NZD770,000 and it was
unlikely they would get any refund.
"It's a pretty unfortunate situation for these patients to be in,"
the report quotes Mr. Fisk as saying.
He said by law the prepayments were unsecured and would only get
paid if there were sufficient funds left in the receivership to pay
them.
"The recoveries we are going to get from the assets won't be
sufficient to be able to pay any unsecure creditors," Mr. Fisk
said.
It was up to the companies that bought the clinics to decide if
they wanted to continue those patients' care at an agreed price -
but they were not legally liable to do so, Mr. Fisk, as cited by NZ
Herald, said.
=================
S I N G A P O R E
=================
BLVD HOLDING: Court Enters Wind-Up Order
----------------------------------------
The High Court of Singapore entered an order on May 21, 2021, to
wind up the operations of BLVD Holding Pte. Ltd.
Maybev Pte Ltd filed the petition against the company.
The company's liquidator is:
Chan Yee Hong
Nexia TS Risk Advisory Pte. Ltd.
80 Robinson Road
#25-00
Singapore 068898
EAGLE HOSPITALITY: Bid to Freeze Funds of Ex-Directors Denied
-------------------------------------------------------------
Uma Devi at The Business Times reports that an application by a
unit of Eagle Hospitality Trust (EHT) to freeze some of the funds
of former directors Howard Wu and Taylor Woods has been turned
down.
The Business Times (BT) understands, however, that Christopher
Sontchi, a bankruptcy judge in the District of Delaware, is mulling
the referral of the matter to federal prosecutors for further
investigation.
BT relates that Urban Commons Queensway (UCQ), one of the debtor
companies within the EHT stable and the owner of The Queen Mary in
Long Beach, had filed a motion for a preliminary injunction to
freeze sufficient funds of Mr. Wu and Mr. Woods to recover US$2.4
million. (The Queen Mary is a floating hotel docked in Long Beach,
California.)
Mr. Wu and Mr. Woods are also co-founders of Urban Commons, the
sponsor of EHT. They stepped down from the board of EHT in May last
year, but remain on the board of Urban Commons.
Court documents filed on behalf of UCQ in the US on May 24 alleged
that Mr. Wu and Mr. Woods applied for and obtained a US$2.4 million
loan last year on behalf of UCQ under the US Cares Act's Paycheck
Protection Programme (PPP), BT relays.
The PPP is a United States government programme designed to
encourage small businesses to keep their workers on payroll,
providing them with funds to pay up to eight weeks of payroll costs
including benefits, BT discloses. Funds can also be used to pay
interest on mortgages, rent, and utilities.
According to BT, UCQ alleged that not only did Mr. Wu and Mr. Woods
lack the authority to take out this loan, they also planned in
advance to have the loan proceeds "immediately transferred away
from UCQ's bank account the moment the loan was funded".
BT relates that the pair had also submitted PPP loan applications
for a number of Urban Commons properties totalling at least US$17.5
million in proceeds. By June 5, 2020, they had reportedly spent all
but approximately US$2.3 million of these funds.
When approached for comment, they told BT via e-mail that the PPP
loan for UCQ was divided into two separate loans by both the lender
and the US Small Business Administration based on where the
employees sat in the company. This had caused the "unexpected
error".
They also claimed to have notified the US Small Business
Association about reassigning this loan from the lessor entity to
the lessee entity when the error was discovered, and said there was
never any intention by any party to do "anything inappropriate".
"The proceeds that were received at that time were included with
other company funds at the parent company level and payments made
therefrom may create some confusion, but in no way was there any
inappropriate or improper intention toward any party," they added.
About Eagle Hospitality Group
Eagle Hospitality Trust -- https://eagleht.com/ -- is a hospitality
stapled group comprising Eagle Hospitality Real Estate Investment
Trust ("Eagle H-REIT") and Eagle Hospitality Business Trust. Based
in Singapore, Eagle H-REIT is established with the principal
investment strategy of investing on a long-term basis, in a
diversified portfolio of income-producing real estate which is used
primarily for hospitality and/or hospitality-related purposes, as
well as real estate-related assets in connection with the
foregoing, with an initial focus on the United States.
EHT US1, Inc., and 26 affiliates, including 15 LLC entities that
each owns hotels in the U.S., sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 21-10036) on Jan. 18, 2021.
EHT US1, Inc., estimated $500 million to $1 billion in assets and
liabilities as of the bankruptcy filing.
The Debtors tapped Paul Hastings LLP as bankruptcy counsel; FTI
Consulting, Inc., as restructuring advisor; and Moelis & Company
LLC, as investment banker. Cole Schotz P.C. is the Delaware
counsel. Rajah & Tann Singapore LLP is Singapore Law counsel, and
Walkers is Cayman Law counsel. Donlin, Recano & Company Inc. is the
claims agent.
EAGLE HOSPITALITY: Delaware Judge Blasts Chapter 11 Fraud Claims
----------------------------------------------------------------
Law360 reports that a U.S. Bankruptcy Court judge declared
Wednesday, May 26, 2021, he was considering referral of an alleged
$2.4 million federal Paycheck Protection Program fraud to the U.S.
attorney's office, during a blistering ruling on a preliminary
injunction motion aimed at the original sponsors of Eagle
Hospitality.
Judge Christopher S. Sontchi's remark came during arguments on a
bid for an injunction filed by debtors EHT US 1 Inc. as well as
Urban Commons Queensway, a California leaseholder in the
multi-hotel bankruptcy of the U.S. affiliate of Singapore-based
Eagle Hospitality Real Estate Investment Trust.
About Eagle Hospitality Group
Eagle Hospitality Trust -- https://eagleht.com/ -- is a hospitality
stapled group comprising Eagle Hospitality Real Estate Investment
Trust ("Eagle H-REIT") and Eagle Hospitality Business Trust. Based
in Singapore, Eagle H-REIT is established with the principal
investment strategy of investing on a long-term basis, in a
diversified portfolio of income-producing real estate which is used
primarily for hospitality and/or hospitality-related purposes, as
well as real estate-related assets in connection with the
foregoing, with an initial focus on the United States.
EHT US1, Inc., and 26 affiliates, including 15 LLC entities that
each owns hotels in the U.S., sought Chapter 11 protection (Bankr.
D. Del. Lead Case No. 21-10036) on Jan. 18, 2021.
EHT US1, Inc., estimated $500 million to $1 billion in assets and
liabilities as of the bankruptcy filing.
The Debtors tapped Paul Hastings LLP as bankruptcy counsel; FTI
Consulting, Inc., as restructuring advisor; and Moelis & Company
LLC, as investment banker. Cole Schotz P.C. is the Delaware
counsel. Rajah & Tann Singapore LLP is Singapore Law counsel, and
Walkers is Cayman Law counsel. Donlin, Recano & Company Inc. is the
claims agent.
NAN YA MARITIME: Grant Thornton Appointed as Liquidators
--------------------------------------------------------
Paresh Jotangia and Ho May Kee of Grant Thornton Singapore Private
Limited on May 20, 2021, were appointed as liquidators of Nan Ya
Maritime (Pte.) Ltd.
The liquidators may be reached at:
Paresh Jotangia
Ho May Kee
Grant Thornton Singapore Private Limited
8 Marina View
#40-04/05 Asia Square Tower 1
Singapore 018960
PFP HOLDINGS: Creditors' Meeting Set for June 4
-----------------------------------------------
PFP Holdings Pte Ltd, which is in voluntary liquidation, will hold
a meeting for its creditors on June 4, 2021, at 10:00 a.m., at 16
Collyer Quay #30-01, in Singapore 049318 and by teleconference.
The purpose of the meeting is to approve the Liquidator’s fees
and disbursements for the liquidation.
The company's liquidator is:
Cameron Duncan
KordaMentha
16 Collyer Quay #30-01
Singapore 049318
=============
V I E T N A M
=============
VIETNAM INTERNATIONAL: Moody's Affirms B1 LT Issuer Rating
----------------------------------------------------------
Moody's Investors Service has affirmed the long-term local and
foreign currency deposit and issuer ratings of Orient Commercial
Joint Stock Bank (OCB), Tien Phong Commercial Joint Stock Bank
(TPBank), Vietnam International Bank (VIB) at B1, and those of
Vietnam JSC Bank for Industry and Trade (VietinBank) at Ba3,
because of stable credit profiles that underpinned the affirmation
of their respective Baseline Credit Assessments (BCA) and Adjusted
BCAs at b1.
The outlook on the ratings of these four banks remains positive.
RATINGS RATIONALE
RATING RATIONALE OF TPBANK, VIB and OCB
The affirmation of the ratings of TPBank and VIB reflects the
banks' (1) stable and good asset quality; (2) good profitability;
and (3) adequate capitalization.
At the same time, the affirmation of OCB's ratings reflects the
bank's (1) strong capital position; (2) above-average
profitability; and (3) elevated asset risks.
TPBank, VIB and OCB are reliant on market funding, a result of
their small domestic franchises, but the high levels of liquid
assets in their balance sheets mitigate this risk.
Moody's expects the asset quality of TPBank and VIB to remain
stable in the next 12-18 months, as reflected by the declines in
their respective nonperforming loan (NPL) ratios to 1.2% and 1.7%
as of the end of 2020, from 1.3% and 2.0% as of the end of 2019.
OCB's asset risks will likely remain elevated in the next 12-18
months. While its NPL ratio remained stable at 1.7% as of the end
of 2020, largely unchanged from the end of 2019, its
special-mention loans increased to 3.0% of gross loans as of the
end of 2020, up from 1.8% as of the end of 2019, due to weaknesses
in its retail loans segment.
A common risk factor for all three banks is their rapid loan
growth, which increases their risk of credit losses due to a higher
level of unseasoned loans.
Moody's expects profitability for all three banks to remain stable,
supported by good yields from their retail and SME loans, and
growing bancassurance fee income. The return on tangible assets
(ROTA) ratios of TPBank and VIB improved to 1.7% and 1.9% as of the
end of 2020 from 1.3% and 1.8% as of the end of 2019, respectively,
while that of OCB remains above average at 2.3% as of the end of
2020, largely stable from the end of 2019.
The tangible common equity to adjusted risk-weighted assets ratios
under Basel II (TCE ratio) of TPBank and VIB remain adequate at
8.8% and 8.5%, respectively, as of the end of 2020. OCB has a
stronger capital position, as reflected by its TCE ratio of 10.3%
as of the end of 2020, because of the capital injection from
Japan's Aozora Bank (unrated) when it bought a 15% stake in OCB in
2020. Moody's expects OCB's capital position to remain above its
peers in the next 12-18 months.
RATING RATIONALE OF VIETINBANK
The affirmation of VietinBank's ratings reflects (1) improvements
in the bank's asset quality; (2) its average profitability; (3)
weak capitalization; (4) good deposit franchise; and (5) the very
high probability of government support because of the bank's
systemic importance, as reflected by its 10% market share of system
assets and deposits as of September 2020.
VietinBank's problem loan ratio, which include NPLs and outstanding
Vietnam Asset Management Company (VAMC) bonds, declined to 0.9% as
of the end of 2020 from 2.5% as of the end of 2019, as the bank
fully resolved its VAMC bonds in 2020. Moody's expects VietinBank's
asset quality to remain stable in the next 12-18 months.
Its capital position is weaker than its peers, with a tangible
common equity to total assets ratio of 6.0% as of the end of 2020,
because of historically high cash dividends and low profitability.
Its ROTA improved to 1.0% as of year-end 2020 from 0.8% as of the
end of 2019, but will likely remain below that of similarly-rated
peers in Vietnam in the next 12-18 months.
VietinBank has a good deposit franchise, with customer deposits
funding 74% of its total assets. Market funds made up 18% of its
tangible banking assets and are well matched by liquid assets,
which accounted for 22% of tangible banking assets as of the end of
2020.
FACTORS THAT COULD LEAD TO AN UPGRADE AND/OR DOWNGRADE OF THE
RATINGS
Moody's could upgrade the long-term ratings of all four banks if
the Vietnamese government's sovereign rating or the banks' BCAs are
upgraded. The banks' BCAs could be upgraded if there are material
and sustainable improvements in their solvency metrics. Moody's
could downgrade the long-term ratings of these banks if their
credit fundamentals severely deteriorate, including a spike in NPLs
leading to higher loan loss provisions that will weigh on the
banks' profitability and capital. A significant deterioration in
the banks' funding and liquidity could also be negative for the
ratings.
The principal methodology used in these ratings was Banks
Methodology published in March 2021.
Orient Commercial Joint Stock Bank (OCB), headquartered in Ho Chi
Minh City, reported total assets of VND153 trillion as of December
31, 2020.
Tien Phong Commercial Joint Stock Bank (TPBank), headquartered in
Hanoi, reported total assets of VND206 trillion as of December 31,
2020.
Vietnam International Bank (VIB), headquartered in Ho Chi Minh
City, reported total assets of VND245 trillion as of December 31,
2020.
Vietnam JSC Bank for Industry and Trade (VietinBank), headquartered
in Hanoi, reported total assets of VND1,341 trillion as of December
31, 2020.
Outlook Actions:
Issuer: Orient Commercial Joint Stock Bank
Outlook, Remains Positive
Issuer: Tien Phong Commercial Joint Stock Bank
Outlook, Remains Positive
Issuer: Vietnam International Bank
Outlook, Remains Positive
Issuer: Vietnam JSC Bank for Industry and Trade
Outlook, Remains Positive
Affirmations:
Issuer: Orient Commercial Joint Stock Bank
Adjusted Baseline Credit Assessment, Affirmed b1
Baseline Credit Assessment, Affirmed b1
Short-term Counterparty Risk Assessment, Affirmed NP(cr)
Long-term Counterparty Risk Assessment, Affirmed Ba3(cr)
Short-term Counterparty Risk Rating (Foreign and Local Currency),
Affirmed NP
Long-term Counterparty Risk Rating (Foreign and Local Currency),
Affirmed Ba3
Short-term Issuer Rating (Foreign and Local Currency), Affirmed
NP
Long-term Issuer Rating (Foreign and Local Currency), Affirmed B1,
outlook positive
Short-term Deposit Rating (Foreign and Local Currency), Affirmed
NP
Long-term Deposit Rating (Foreign and Local Currency), Affirmed
B1, outlook positive
Issuer: Tien Phong Commercial Joint Stock Bank
Adjusted Baseline Credit Assessment, Affirmed b1
Baseline Credit Assessment, Affirmed b1
Short-term Counterparty Risk Assessment, Affirmed NP(cr)
Long-term Counterparty Risk Assessment, Affirmed Ba3(cr)
Short-term Counterparty Risk Rating (Foreign and Local Currency),
Affirmed NP
Long-term Counterparty Risk Rating (Foreign and Local Currency),
Affirmed Ba3
Short-term Issuer Rating (Foreign and Local Currency), Affirmed
NP
Long-term Issuer Rating (Foreign and Local Currency), Affirmed B1,
outlook positive
Short-term Deposit Rating (Foreign and Local Currency), Affirmed
NP
Long-term Deposit Rating (Foreign and Local Currency), Affirmed
B1, outlook positive
Issuer: Vietnam International Bank
Adjusted Baseline Credit Assessment, Affirmed b1
Baseline Credit Assessment, Affirmed b1
Short-term Counterparty Risk Assessment, Affirmed NP(cr)
Long-term Counterparty Risk Assessment, Affirmed Ba3(cr)
Short-term Counterparty Risk Rating (Foreign and Local Currency),
Affirmed NP
Long-term Counterparty Risk Rating (Foreign and Local Currency),
Affirmed Ba3
Short-term Issuer Rating (Foreign and Local Currency), Affirmed
NP
Long-term Issuer Rating (Foreign and Local Currency), Affirmed B1,
outlook positive
Short-term Deposit Rating (Foreign and Local Currency), Affirmed
NP
Long-term Deposit Rating (Foreign and Local Currency), Affirmed
B1, outlook positive
Issuer: Vietnam JSC Bank for Industry and Trade
Adjusted Baseline Credit Assessment, Affirmed b1
Baseline Credit Assessment, Affirmed b1
Short-term Counterparty Risk Assessment, Affirmed NP(cr)
Long-term Counterparty Risk Assessment, Affirmed Ba3(cr)
Short-term Counterparty Risk Rating (Foreign and Local Currency),
Affirmed NP
Long-term Counterparty Risk Rating (Foreign and Local Currency),
Affirmed Ba3
Short-term Issuer Rating (Foreign and Local Currency), Affirmed
NP
Long-term Issuer Rating (Foreign and Local Currency), Affirmed
Ba3, outlook positive
Short-term Deposit Rating (Foreign and Local Currency), Affirmed
NP
Long-term Deposit Rating (Foreign and Local Currency), Affirmed
Ba3, outlook positive
*********
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-
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Editors.
Copyright 2021. All rights reserved. ISSN: 1520-9482.
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