/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/210602.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 Wednesday, June 2, 2021, Vol. 24, No. 104 Headlines A U S T R A L I A GOLD ROAD: First Creditors' Meeting Set for June 9 GREATSKIN PTY: Second Creditors' Meeting Set for June 9 INTEGRATED GREEN: First Creditors' Meeting Set for June 9 TETRAMED LIMITED: First Creditors' Meeting Set for June 10 WISR FREEDOM 2021-1: Moody's Assigns B2 Rating to AUD5.85M F Notes C H I N A BANK OF SUZHOU: Moody's Affirms Ba1 Deposit Rating, Outlook Stable CHINA HONGQIAO: Fitch Assigns BB Rating to Proposed USD Notes CHINA HONGQIAO: S&P Assigns 'B+' Rating to New USD Sr. Unsec. Notes CHINA HUARONG: China Mulls New Holding Company for Firm, 3 Others DALIAN OCEAN: U.S. Bans Seafood Imports Citing Use of Forced Labor GOLDEN WHEEL: Moody's Assigns B3 Rating to Proposed USD Bond HUAI'AN TRAFFIC: Fitch Affirms 'BB' LT IDRs, Outlook Stable MEINIAN ONEHEALTH: Moody's Affirms B2 CFR, Alters Outlook to Stable SICHUAN LANGUANG: Moody's Lowers CFR to B3 on Weakened Liquidity SICHUAN LANGUANG: S&P Cuts Long-Term Issuer Credit Rating to 'B-' SINIC HOLDINGS: Fitch Affirms 'B+' LT IDR, Outlook Stable ZHONGYU GAS: Fitch Withdraws 'B+' Rating on USD Sr. Unsec. Notes I N D I A AJANTA SPINTEX: CRISIL Keeps D Debt Ratings in Not Cooperating CHAMPION GROUP: CRISIL Keeps B Debt Rating in Not Cooperating CORPORATE FASHION: CRISIL Keeps D Debt Ratings in Not Cooperating DHIR GLOBAL INDUSTRIA: Insolvency Resolution Process Case Summary FUCON TECHNOLOGIES: CRISIL Keeps D Ratings in Not Cooperating GATI INFRASTRUCTURE: Insolvency Resolution Process Case Summary GOMUR FABRICS: CRISIL Lowers Rating on INR7.5cr Cash Loan to B GOVIND AGRO: CRISIL Lowers Rating on INR30cr Cash Loan to B GURUDEVA INDUSTRIES: CRISIL Keeps B Ratings in Not Cooperating GVRMP WHAGDHARI: CRISIL Keeps D Debt Rating in Not Cooperating HIMAVASINI MOTORS: CRISIL Keeps D Debt Ratings in Not Cooperating IMPEX INDIA: CRISIL Keeps D Debt Ratings in Not Cooperating LAMIYA SILKS: CRISIL Keeps D Debt Ratings in Not Cooperating LORD WHEELS: CRISIL Keeps B Debt Ratings in Not Cooperating LUCKNOW HEALTHCITY: CRISIL Keeps B+ Rating in Not Cooperating MAA SARASWATI: CRISIL Keeps D Debt Ratings in Not Cooperating MALLEMAALA ENTERTAINMENTS: CRISIL Cuts Rating on Loans to B NATH MOTORS: CRISIL Lowers Rating on INR60cr Loans to D NEW AGE: CRISIL Keeps D Debt Ratings in Not Cooperating Category PRASHANTH POULTRY: CRISIL Keeps D Debt Ratings in Not Cooperating RADHIKA JEWELS: CRISIL Keeps B Debt Rating in Not Cooperating REFKINGS COTT: CRISIL Keeps B Debt Rating in Not Cooperating SAMALESWARI EDUCATION: CRISIL Keeps B- Ratings in Not Cooperating SHANTI NIKETAN: CRISIL Keeps D Debt Ratings in Not Cooperating SHIV RICE: CRISIL Keeps B Debt Ratings in Not Cooperating SHIVADARSHAN AGRO: CRISIL Keeps B+ Ratings in Not Cooperating SHYAMALI COLD: CRISIL Keeps D Debt Ratings in Not Cooperating SRAVANI RAW: CRISIL Keeps B- Debt Ratings in Not Cooperating VIJAYA LAKSHMI: CRISIL Keeps B+ Debt Ratings in Not Cooperating VIL INTERNATIONAL: CRISIL Keeps D Debt Ratings in Not Cooperating YADAV RICE: CRISIL Keeps B+ Debt Ratings in Not Cooperating ZERO MICROFINANCE: CRISIL Keeps B- Debt Rating in Not Cooperating I N D O N E S I A GARUDA INDONESIA: Confirms Debt Revamp Plans as COVID Hit Cashflows J A P A N MT GOX: Voting on a Proposal to Reimburse Victims Begins UNIVERSAL ENTERTAINMENT: Fitch Cuts LT IDR & USD Sr. Notes to CCC+ M A L A Y S I A SERBA DINAMIK: S&P Lowers ICR to 'B-' on Reduced Funding Access N E W Z E A L A N D MTF PANTERA 2021: Fitch Assigns B+(EXP) Rating on Class F Notes S I N G A P O R E HUITONGRONG INTERNATIONAL: Court Enters Wind-Up Order NORTHEASTERN VENUE: Aculus Advisory Appointed as Liquidators TML HOLDINGS: S&P Assigns 'B' Rating to New USD Sr. Unsecured Notes S R I L A N K A SRI LANKA: S&P Affirms CCC+ Sovereign Credit Rating, Outlook Stable T H A I L A N D THAI AIRWAYS: Court Hearing on Restructuring Moved to June 15 V I E T N A M HO CHI MINH CITY DEVELOPMENT: Moody's Affirms B1 LT Deposit Rating - - - - - ================= A U S T R A L I A ================= GOLD ROAD: First Creditors' Meeting Set for June 9 -------------------------------------------------- A first meeting of the creditors in the proceedings of Gold Road No 2 Pty Ltd ATF Gold Road Unit Trust No 2 (formerly trading as GRUT 2) will be held on June 9, 2021, at 11:00 a.m. at the offices of Hamilton Murphy, Level 1, 255 Mary Street, in Richmond, Victoria. Richard Rohrt of Hamilton Murphy was appointed as administrator of Gold Road on May 28, 2021. GREATSKIN PTY: Second Creditors' Meeting Set for June 9 ------------------------------------------------------- A second meeting of creditors in the proceedings of Greatskin Pty Limited, trading as real - u, has been set for June 9, 2021, at 11:00 a.m. via teleconference. The purpose of the meeting is (1) to receive the report by the Administrator about the business, property, affairs and financial circumstances of the Company; and (2) for the creditors of the Company to resolve whether the Company will execute a deed of company arrangement, the administration should end, or the Company be wound up. Creditors wishing to attend are advised proofs and proxies should be submitted to the Administrator by June 8, 2021, at 4:00 p.m. Nathan Lee Deppeler and Scott Andersen of Worrells Solvency & Forensic Accountants were appointed as administrators of Greatskin Pty on May 5, 2021. INTEGRATED GREEN: First Creditors' Meeting Set for June 9 --------------------------------------------------------- A first meeting of the creditors in the proceedings of Integrated Green Energy Solutions Ltd will be held on June 9, 2021, at 9:30 a.m. via Zoom video conferencing. Trent Andrew Devine and Andrew John Spring of Jirsch Sutherland were appointed as administrators of Integrated Green on May 28, 2021. TETRAMED LIMITED: First Creditors' Meeting Set for June 10 ---------------------------------------------------------- A first meeting of the creditors in the proceedings of Tetramed Limited and Heliochem Pty Ltd will be held on June 10, 2021, at 11:00 a.m. via Zoom. Dermott Joseph McVeigh of Avior Consulting was appointed as administrator of Tetramed Limited on May 28, 2021. WISR FREEDOM 2021-1: Moody's Assigns B2 Rating to AUD5.85M F Notes ------------------------------------------------------------------ Moody's Investors Service has assigned definitive ratings to the notes issued by AMAL Trustees Pty Limited as trustee of Wisr Freedom Trust 2021-1. Issuer: Wisr Freedom Trust 2021-1 AUD141.75 million Class A Notes, Assigned Aaa (sf) AUD16.2 million Class B Notes, Assigned Aa1 (sf) AUD20.7 million Class C Notes, Assigned A1 (sf) AUD14.4 million Class D Notes, Assigned Baa1 (sf) AUD18.9 million Class E Notes, Assigned Ba2 (sf AUD5.85 million Class F Notes, Assigned B2 (sf) The AUD3.6 million Class G1 Notes and AUD3.6 million Class G2 Notes are not rated by Moody's. The transaction is a cash securitisation of a portfolio of Australian mainly unsecured consumer personal loans originated and serviced by Wisr Finance Pty Ltd (Wisr, unrated). This is Wisr's inaugural term asset-backed securitisation transaction. Wisr is an Australian non-bank lender providing consumer loans, including unsecured personal loans and secured auto loans, to prime borrowers in Australia. As of March 2021, its loan portfolio amounted to around AUD345.6 million, consisting of over 14,000 receivables. Wisr started out as a peer-to-peer lender in 2015 under the name of DirectMoney. The funding model switched to wholesale in 2017, followed by rebranding to Wisr in 2018. RATINGS RATIONALE The definitive ratings take into account, among other factors, (1) Moody's evaluation of the underlying receivables and their expected performance, (2) evaluation of the capital structure and credit enhancement provided to the notes, (3) availability of excess spread over the transaction's life, (4) the liquidity facility in the amount of 1.5% of the rated notes balance, (5) the legal structure, and (6) Wisr's experience as servicer. Moody's portfolio credit enhancement — representing the loss that Moody's expects the portfolio to suffer in the event of a severe recession scenario — is 38%. Moody's mean default for this transaction is 7.7% and recovery is 5%. Moody's analysis is based on limited historical performance data. Wisr is a relatively new originator, with relevant historical default data only available from the third quarter of 2017. As such, the pool's performance could be subject to greater variability than the currently available loss data indicates. Moody's has incorporated an additional stress into its default assumptions to account for the limited data, including the fact that the performance history does not cover a full life cycle for any one vintage. The coronavirus pandemic has had a significant impact on economic activity. Although global economies have shown a remarkable degree of resilience to date and are returning to growth, the uneven effects on individual businesses, sectors and regions will continue throughout 2021 and will endure as a challenge to the world's economies well beyond the end of the year. While persistent virus fears remain the main risk for a recovery in demand, the economy will recover faster if vaccines and further fiscal and monetary policy responses bring forward a normalization of activity. As a result, there is a heightened degree of uncertainty around Moody's forecasts. Moody's analysis has considered the effect on the performance of consumer assets from a gradual and unbalanced recovery in Australian economic activity. Moody's regard the coronavirus outbreak as a social risk under its ESG framework, given the substantial implications for public health and safety. Key transactional features are as follows: The notes will be repaid on a sequential basis initially. Once step-down conditions are satisfied, all notes, excluding Class G1 and Class G2 Notes, will receive their pro-rata share of principal. Step-down conditions include, among others, 41% subordination to the Class A Notes and no unreimbursed charge-offs. The repayment of principal will revert to sequential on the call option date. A swap provided by National Australia Bank Limited (Aa3/P-1/Aa2(cr)/P-1(cr)) will hedge the interest rate mismatch between the assets bearing a fixed rate of interest, and floating rate liabilities. The notional balance of the swap will follow a schedule based on amortisation of the assets assuming a certain prepayment rate. AMAL Asset Management Limited is the back-up servicer. If Wisr is terminated as servicer, AMAL will take over the servicing role in accordance with the standby servicing deed and its back-up servicing plan. pool features are as follows: As of the March 31, 2021 cut-off date, the securitised pool consisted of 8,600 personal loans. The total outstanding balance of the receivables was AUD224,042,323. The weighted average interest rate of the portfolio is 11.7%, with interest rates ranging from 6.5% to 21.0%. 79.4% of loans are to borrowers are in full-time employment. The weighted average Equifax credit score of the portfolio is 751. The weighted average remaining term of the portfolio is 62.1 months. The weighted average seasoning of the initial portfolio is 6.0 months. Methodology Underlying the Rating Action The principal methodology used in these ratings was "Moody's Approach to Rating Consumer Loan-Backed ABS" published in July 2020. Factors that would lead to an upgrade or downgrade of the ratings: Factors that could lead to an upgrade of the notes include a rapid build-up of credit enhancement due to sequential amortization or a better-than-expected collateral performance. The Australian job market is a primary driver of performance. Factor that could lead to a downgrade of the notes is a worse-than-expected collateral performance, poor servicing, error on the part of transaction parties, a deterioration in the credit quality of transaction counterparties, a lack of transactional governance, or fraud. ========= C H I N A ========= BANK OF SUZHOU: Moody's Affirms Ba1 Deposit Rating, Outlook Stable ------------------------------------------------------------------ Moody's Investors Service has affirmed the ratings of the following three Chinese regional banks. At the same time, Moody's has changed the outlooks of these three banks to stable from negative. The Baa3 long-term foreign and local currency deposit ratings of Bank of Nanjing Co., Ltd. The Baa2 long-term foreign and local currency deposit ratings of Bank of Ningbo Co., Ltd. The Ba1 long-term foreign and local currency deposit ratings of Bank of Suzhou Co., Ltd. RATINGS RATIONALE The change of the three banks' outlooks to stable from negative reflects Moody's expectation that downside risk to their credit profiles is limited over the next 12-18 months given the stable operating environment and the banks' resilient financial fundamentals despite the economic shock from the pandemic. The affirmation of the banks' ratings and assessments reflect the strong deposit franchise in their respective regions, and the fact that their performance will continue to benefit from their robust local economies. Moody's also expects that the banks will continue to maintain sound asset risk metrics, solid capitalization and high provision coverage. The three banks' financial fundamentals have benefited from their sound and advanced regional economies. Although manufacturing and trade-related sectors in the regions were hit during the outbreak, they have rebounded quickly due to effective measures to control the outbreak, adaptability of companies in the regions and supportive government policies. Meanwhile, the three banks' asset quality remains good, and their off-balance sheet shadow banking exposures have decreased or remained flat. In addition, the banks have replenished capital in recent years to support their relatively strong asset growth. Rating rationale for individual banks Bank of Nanjing Bank of Nanjing's Baa3 long-term deposit ratings incorporate its ba2 Baseline Credit Assessment (BCA) and a two-notch uplift based on Moody's assessment of a high level of support from the Government of China in times of need. Its Baa3(cr) Counterparty Risk (CR) Assessment and Baa3 Counterparty Risk Ratings (CRRs) incorporate two-notch uplift from its ba2 BCA. The assessment of a high level of government support reflects the bank's important role as the largest city commercial bank in Nanjing. In addition, it considers the 32% ownership stake collectively held by local state-owned entities. Bank of Nanjing's ba2 BCA reflects its 1) improved capital position after a private placement of RMB11.6 billion in 2020; 2) resilient asset quality because of its stringent risk management, high provision coverage and robust regional economic growth, as the bank has allocated 83% of its gross loans in Jiangsu province as of the end of 2020; and 3) sound liquidity and lower proportion of high-risky financial assets in recent years. Bank of Ningbo Bank of Ningbo's Baa2 long-term deposit ratings incorporate its ba1 BCA and a two-notch uplift based on Moody's assessment of a high level of support from the Government of China. Its Baa2(cr) CR Assessment and Baa2 CRRs incorporate two-notch uplift from its ba1 BCA. The assessment of a high level of government support considers that Ningbo is one of the five centrally planned cities in China, and Bank of Ningbo is the largest city commercial bank in Ningbo by total assets. In addition, it considers the 20.0% ownership stake held by the Ningbo municipal government through various local state-owned entities. Bank of Ningbo's ba1 BCA reflects its 1) track record of stable asset quality because of its business focus on economically advanced regions and strong provision coverage; 2) its high loan growth which brings pressure to its capitalization; 3) good profitability supported by stable loan pricing and continued growth of fees and commission income; 4) strong liquidity position benefiting from its growing deposit base and adequate liquidity, but still challenged by its relatively high reliance on market funds. Bank of Suzhou Bank of Suzhou's Ba1 long-term deposit ratings incorporate its BCA of ba2 and a one-notch uplift based on Moody's assumption of a moderate level of support from the Government of China. Its Baa3(cr) CR Assessment and Baa3 CRRs incorporate two-notch uplift from its ba2 BCA. The assessment of a moderate level of government support reflects the bank's position as the only city commercial bank incorporated in Suzhou and around 26.0% stakes held by state-owned entities as of year-end 2020. That said, the bank's franchise is still limited at the national level. Bank of Suzhou's ba2 BCA reflects its 1) resilient asset quality because of a robust local economy, the bank's more stringent risk limits, the usage of technology, and high nonperforming loan coverage ratio of 292% as of the end of 2020; 2) solid capital position benefited from its listing in the A-share market in 2019 and the issuance of convertible bonds in April 2021; and 3) sound liquidity with its established franchise in the local market and continued deposit growth. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade the three banks' deposit ratings if the Government of China's capability or willingness to support the bank increases, or if the banks' improving fundamentals lead to an upgrade of their BCAs. Conversely, Moody's could downgrade their deposit ratings if the Government of China's capability or willingness to support the bank weakens, or if the banks' BCA is downgraded. Moody's could downgrade the banks' BCAs if the operating environment weakens significantly, which could arise if China's economic growth moderates as the pandemic-induced weakness lingers or China's corporate financial leverage increases significantly as a result of loose monetary policies. Bank of Nanjing Moody's could upgrade Bank of Nanjing's BCA if the bank grows its balance sheet in a disciplined manner and continues to reduce its exposure to higher-risk financial investments. In addition, its BCA could be upgraded if the bank maintains its strong deposit franchise and liquidity profile while keeping its sound asset risk, capital and profitability metrics. Moody's could downgrade Bank of Nanjing's BCA if (1) its asset quality deteriorates, with the ratio of impaired loans to gross loans above 3%; (2) profitability deteriorates, with its net income/tangible assets below 0.5% on a sustained basis; or (3) reliance on market funding increases, with its market funds/tangible banking assets above 40%. Bank of Ningbo Moody's could upgrade Bank of Ningbo's BCA if the bank grows its loan book at a more measured pace, and if its (1) asset quality remains resilient, with impaired loans to gross loans consistently below 0.8%; (2) reliance on market funds reduces, with market funds/tangible banking assets consistently below 25%; and (3) capital strengthens, with TCE/RWA consistently above 10%; or profitability improves, with net income/tangible assets consistently above 1%. Moody's could downgrade Bank of Ningbo's BCA if its (1) reliance on market funds increases, with market funds/tangible banking assets consistently above 35%; (2) asset quality deteriorates, with impaired loans to gross loans above 2.0% consistently; or (3) profitability weakens, with net income/tangible assets consistently below 0.75%. Bank of Suzhou Moody's could upgrade Bank of Suzhou's BCA if the bank grows its balance sheet in a disciplined manner and continues to reduce its exposure to higher-risk financial investments. In addition, its BCA could be upgraded if the bank maintains its deposit franchise and liquidity profile while keeping its sound asset risk, capital and profitability metrics. Moody's could downgrade Bank of Suzhou's BCA if its (1) asset quality deteriorates, with the ratio of impaired loans to gross loans above 3%; (2) profitability deteriorates, with its net income/tangible assets below 0.5% on a sustained basis; and (3) reliance on market funding increases, with its market funds/tangible banking assets above 40%. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Banks Methodology published in March 2021. LIST OF AFFECTED RATINGS AND ASSESSMENTS: Issuer: Bank of Nanjing Co., Ltd. Adjusted Baseline Credit Assessment, Affirmed ba2 Baseline Credit Assessment, Affirmed ba2 Short-term Counterparty Risk Assessment, Affirmed P-3(cr) Long-term Counterparty Risk Assessment, Affirmed Baa3(cr) Short-term Counterparty Risk Rating (Foreign and Local Currency), Affirmed P-3 Long-term Counterparty Risk Rating (Foreign and Local Currency), Affirmed Baa3 Short-term Deposit Rating (Foreign and Local Currency), Affirmed P-3 Long-term Deposit Rating (Foreign and Local Currency), Affirmed Baa3; Outlook, Changed To Stable From Negative Outlook, Changed To Stable From Negative Issuer: Bank of Ningbo Co., Ltd. Adjusted Baseline Credit Assessment, Affirmed ba1 Baseline Credit Assessment, Affirmed ba1 Short-term Counterparty Risk Assessment, Affirmed P-2(cr) Long-term Counterparty Risk Assessment, Affirmed Baa2(cr) Short-term Counterparty Risk Rating (Foreign and Local Currency), Affirmed P-2 Long-term Counterparty Risk Rating (Foreign and Local Currency), Affirmed Baa2 Short-term Deposit Rating (Foreign and Local Currency), Affirmed P-2 Long-term Deposit Rating (Foreign and Local Currency), Affirmed Baa2; Outlook, Changed To Stable From Negative Outlook, Changed To Stable From Negative Issuer: Bank of Suzhou Co., Ltd. Adjusted Baseline Credit Assessment, Affirmed ba2 Baseline Credit Assessment, Affirmed ba2 Short-term Counterparty Risk Assessment, Affirmed P-3(cr) Long-term Counterparty Risk Assessment, Affirmed Baa3(cr) Short-term Counterparty Risk Rating (Foreign and Local Currency), Affirmed P-3 Long-term Counterparty Risk Rating (Foreign and Local Currency), Affirmed Baa3 Short-term Issuer Rating (Foreign and Local Currency), Affirmed NP Long-term Issuer Rating (Foreign and Local Currency), Affirmed Ba1; Outlook, Changed To Stable From Negative Short-term Deposit Rating (Foreign and Local Currency), Affirmed NP Long-term Deposit Rating (Foreign and Local Currency), Affirmed Ba1; Outlook, Changed To Stable From Negative Outlook, Changed To Stable From Negative BANK PROFILES Bank of Nanjing is a city commercial bank headquartered in Nanjing, Jiangsu Province. The bank reported total assets of RMB1.5 trillion as of the end of 2020. Bank of Ningbo is a city commercial bank headquartered in Ningbo, Zhejiang Province. The bank reported total assets of RMB1.6 trillion as of the end of 2020. Bank of Suzhou is a city commercial bank headquartered in Suzhou, Jiangsu Province. It reported total assets of RMB388.1 billion as of the end of 2020. CHINA HONGQIAO: Fitch Assigns BB Rating to Proposed USD Notes ------------------------------------------------------------- Fitch Ratings has assigned China-based aluminium producer China Hongqiao Group Limited's (Hongqiao, BB/Positive) proposed US dollar notes a 'BB' rating. The proposed notes will be issued by Hongqiao. They are rated at the same level as Hongqiao's senior unsecured rating, as they represent its unsecured and unsubordinated obligations. Hongqiao's ratings reflect its strong financial position, consistent cash flow generation and favourable market conditions over the next few years. The Positive Outlook reflects Fitch's expectation that Hongqiao's policy risk will decrease when it completes the migration of two million tonnes of aluminium production capacity from Shandong to Yunnan province in southern China. Fitch also expects the capital-market debt maturity profile to improve after concentrated repayments in 1H21. KEY RATING DRIVERS Capacity Migration to Strengthen Profile: Hongqiao plans to move the aluminium capacity to Yunnan in two phases of one million tonnes each. The company has total capacity of 6.5 million tonnes. Fitch expects the first phase of the migration to be completed and begin operations in 2021 and the second phase to begin at end-2021. Completion of the migration will provide geographical diversification and lower policy risk related to power surcharges. The new capacity in Yunnan will have access to cheaper renewable energy and lower production costs, as well as policy and funding support from the provincial government. Improvement in Debt-Maturity Profile: Fitch believes its debt-maturity concentration risk will be mitigated by funding cash flow from 1H21 transactions and solid operating cash flow from favourable market conditions. Hongqiao in 1H21 issued convertible shares of USD300 million (CNY1.9 billion), completed a share placement for HKD2.3 billion (CNY1.9 billion) and introduced strategic investors with a capital injection of CNY3.8 billion. Profitability to Remain Strong: Fitch expects profitability to remain strong in 2021, as Fitch thinks aluminium prices will remain high on strong demand, particularly from the automotive and solar energy sectors. This is in line with Fitch's updated metal and mining price assumptions. Large Scale, Low Costs: Hongqiao's large operating scale and low costs enable the company to deliver strong profitability. Revenue rose by 2% to CNY86 billion in 2020 and the EBITDA margin expanded by 2pp to 27%, the result of higher aluminium prices from the strong economic recovery in China. Surcharge Uncertainty Risks Profitability: Policy risk lingers as possible implementation of government surcharges on Hongqiao's captive power-generation assets would increase its production costs in Shandong. Nevertheless, its FFO net leverage would remain well below 2.5x, even with the inclusion of potential surcharges, under current market conditions. Sustained Low Leverage: Fitch expects net leverage to remain low at around 1.0x in 2021 and 2022, supported by strong aluminium prices and a stable margin. Hongqiao's net leverage remained stable below 2.5x in the past four years, dropping to 1.4x in 2020. The leverage improvement was due mainly to strong cash flow from its aluminium business and moderate capex. DERIVATION SUMMARY Comparable Fitch-rated peers include Alcoa Corporation (BB+/Stable), United Company RUSAL, international public joint-stock company (BB-/Stable), Aluminum Corporation of China Limited (Chalco, A-/Stable) and Jiangsu Shagang Group Co., Ltd. (Shagang, BBB-/Stable). Hongqiao has a less sophisticated product range than Alcoa, but it maintains a higher EBITDA margin due to the scale and efficiency of its core aluminium smelting business. Hongqiao's FFO net leverage is similar to Alcoa's, but Alcoa has much better operational and end-market diversity. Hongqiao also has higher business risk due to the power surcharge uncertainty. RUSAL benefits from substantial size, low input costs and its stake in PJSC MMC Norilsk Nickel (BBB-/Stable). However, Hongqiao has higher profitability than RUSAL and maintains a lower FFO net leverage, but has higher business risks due to uncertainty over the power surcharges. Chalco's aluminium segment is smaller in scale than that of Hongqiao, which has consistently higher profitability and lower and less volatile net leverage. However, Chalco's rating benefits from its linkage to its parent, Aluminum Corporation of China (A-/Stable). Hongqiao has a smaller operating scale than Shagang but a higher EBITDA margin due to its low-cost position from high vertical integration. Shagang and Hongqiao have similar leverage and both generate positive free cash flow. However, Shagang has better diversification through wider product offerings and more value-added products. Hongqiao also has higher business risk due to the power surcharge uncertainty. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Total aluminium capacity to remain at 6.5 million tonnes; -- EBITDA margin of 27%-31% between 2021 and 2024; -- Capex of CNY5.5 billion a year in 2021-2024; -- 40% dividend payout ratio in 2021-2024. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Capacity migration to Yunnan largely on track, resulting in meaningful reduction in captive power usage; -- FFO net leverage sustained below 2.0x; -- Improved capital market debt-maturity profile. Factor that could, individually or collectively, lead to negative rating action/downgrade: -- The Outlook will be revised to Stable if the positive sensitivities are not reached within the next 12-18 months. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Sufficient Liquidity: Hongqiao had total debt of CNY76 billion at end-2020 and short-term debt totalling CNY45.6 billion, of which CNY22.8 billion (CNY17.2 billion in 1H21 and CNY5.6 billion in 2H21) were outstanding bonds. The company had available cash of CNY46 billion and an unused credit facility of around CNY17 billion, as well as access to domestic and international bond and equity markets. The company's cash balance was adequate to cover short-term debt. ISSUER PROFILE Hongqiao is the second-largest primary aluminium producer globally, accounting for around 15% and 9% of domestic and global output, respectively. It has its own bauxite supply in Guinea, alumina self-sufficiency and power supply that meets over 60% of its needs. 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. CHINA HONGQIAO: S&P Assigns 'B+' Rating to New USD Sr. Unsec. Notes ------------------------------------------------------------------- S&P Global Ratings assigned its 'B+' long-term issue rating to a proposed issuance of U.S. dollar-denominated senior unsecured notes by China Hongqiao Group Ltd. (BB-/Stable/--). The issue rating is subject to S&P's review of the final issuance documentation. S&P said, "We rate the notes one notch lower than the issuer credit rating on Hongqiao to reflect structural subordination risk. As of Dec. 31, 2020, the China-based aluminum producer has total debt of Chinese renminbi (RMB) 75.9 billion, with RMB8.5 billion of secured debt, RMB7.8 billion of unsecured debt at the parent company's level, and RMB59.7 billion of unsecured debt at the subsidiaries' level. As such, the ratio of priority debt to total debt is about 89.8%, above our 50% threshold for notching down an issue rating. "In April 2021, we raised our long-term issuer credit rating on Hongqiao to 'BB-' from 'B+' in view of the company's improved financial discipline. Hongqiao's moderate capital expenditure and resilient aluminum prices will help it generate positive discretionary cash flow over the next two years, supporting debt reduction. The company's ratio of funds from operations to debt will likely stay above 40% over the next two years, higher than 35.4% in 2020, and above our downside trigger of 30%." CHINA HUARONG: China Mulls New Holding Company for Firm, 3 Others ----------------------------------------------------------------- Bloomberg News reports that China's finance ministry is considering a proposal to transfer its shares in China Huarong Asset Management Co. and three other bad-debt managers to a new holding company modeled after the one that owns the government's stakes in state-run banks, according to a person familiar with the matter. Bloomberg relates that policy makers are re-examining the proposal, which was first tabled three years ago, as part of discussions on how to deal with the financial risks posed by Huarong, said the person, who asked not to be identified discussing private information. Some officials view the creation of a holding company as a step toward separating the government's roles as a regulator and shareholder, streamlining oversight and instilling a more professional management culture at Huarong and its peers, the person said. Authorities are also discussing whether to bring in more external investors, effectively reducing the finance ministry's controlling stakes, the person said, Bloomberg relays. Regulators are still awaiting guidance from senior Chinese leaders on the proposals and on how to resolve Huarong's debt challenges, the person added. It's unclear what impact, if any, the proposed changes would have on Beijing's willingness to extend financial support to Huarong and its peers during times of stress, according to Bloomberg. Even though the government owns stakes in major Chinese banks indirectly through a company called Central Huijin Investment Ltd., the firms are still considered by creditors and other counterparties to enjoy strong official backing. Bloomberg says fears that Huarong might default have rattled bondholders since the end of March, when the company missed a deadline to report annual results. Any move to inflict losses on Huarong's creditors would mark a significant -- and potentially risky -- step in President Xi Jinping's campaign to reduce moral hazard in the world's second-largest credit market. With nearly CNY1.6 trillion ($251 billion) of liabilities and a vast web of connections with other financial institutions, Huarong is among China's most systemically important companies outside the nation's state-owned banks. While Huarong has continued to repay maturing debt on time, the company's longer-dated obligations are trading at stressed levels. Its 4.5% perpetual bond is priced at about 60 cents on the dollar, data compiled by Bloomberg show. In the onshore market, the company's 3.7% bond due 2022 traded at a record low CNY69.9 on June 1. The company has previously said that its liquidity position is "fine" and that it has seen no change in government support, Bloomberg relays. According to Bloomberg, Huarong has reached funding agreements with state-owned banks to ensure it can repay debt through at least the end of August, by which time the company aims to have completed its 2020 financial statements, people familiar with the matter said last month. Huarong has also drafted a proposal that would see it offload unprofitable and non-core businesses while avoiding the need for a debt restructuring, though that plan would require approval from senior policy makers, people familiar said in April. Chinese authorities have so far been silent about Huarong's fate in public as they work out how to manage its debt issues, Bloomberg states. Bloomberg says China Investment Corp., the $1 trillion sovereign wealth fund and parent of Central Huijin, has objected to one proposal that would have seen it assume the finance ministry's state in Huarong. CIC has argued it doesn't have the bandwidth or capability to fix Huarong's problems, people familiar with the matter said last month. The ministry itself, which owns 57% of Huarong on behalf of the Chinese government, hasn't committed to recapitalizing the company, though it hasn't ruled it out, either, one person said. Some officials see the Huarong saga as an opportunity to revamp how China oversees all of its bad-debt managers. According to Bloomberg, the government created Huarong, China Cinda Asset Management Co., China Great Wall Asset Management Co. and China Orient Asset Management Co. during a banking crisis in the late 1990s, using the firms to carve out CNY1.4 trillion of non-performing loans from the nation's biggest state-run lenders. After completing their 10-year mandate as bad-debt managers, the companies expanded into everything from investment banking to trusts and real estate, borrowing billions from banks and bond investors in the process. Huarong was the most aggressive of the four under former Chairman Lai Xiaomin, who was executed in January for crimes including bribery. Together, the bad-debt managers have nearly $50 billion in outstanding dollar bonds and need to refinance or repay $4.9 billion of maturing notes through year-end, according to data compiled by Bloomberg. About China Huarong China Huarong Asset Management Co., Ltd., together with its subsidiaries, provides various financial asset management services. As reported in the Troubled Company Reporter-Asia Pacific on April 16, 2021, Moody's Investors Service has placed the A3 long-term and P-2 short-term issuer ratings, as well as the b1 baseline credit assessment, of China Huarong Asset Management Co., Ltd. (Huarong AMC) under review for downgrade. In addition, Moody's has placed the debt ratings and medium-term note (MTN) program ratings of Huarong AMC's offshore financing vehicles under review for downgrade. These include the Baa1 long-term backed senior unsecured debt ratings and the (P)Baa1 backed senior unsecured MTN program ratings of Huarong Finance 2017 Co., Ltd and Huarong Finance II Co., Ltd, as well as the Baa1 long-term backed senior unsecured debt rating, the (P)Baa1 long-term and (P)P-2 short-term backed senior unsecured MTN program ratings of Huarong Finance 2019 Co., Ltd. DALIAN OCEAN: U.S. Bans Seafood Imports Citing Use of Forced Labor ------------------------------------------------------------------ The Wall Street Journal reports that the U.S. banned imports of tuna, swordfish and other seafood from a Chinese fishery company, citing evidence of forced labor on its distant-water vessels. U.S. Customs and Border Protection agents will detain shipments containing seafood harvested by China's Dalian Ocean Fishing Co., officials said, in the latest example of Washington confronting Beijing over human-rights issues, the Journal relates. "We have found evidence of all 11 forced labor indicators, including physical violence against fishers, debt bondage, withholding of wages and abusive living and working conditions," Troy Miller, CBP's senior official performing the duties of the Commissioner, told reporters on May 28. According to the Journal, the order applies to the Chinese company's entire fleet of 32 vessels, which official said operate off the coasts of China, Indonesia and Senegal with mostly Indonesian crews. Canned tuna and pet food containing the company's products were also banned. In its website, Dalian Ocean Fishing said it focuses on ultralow temperature fishing of premium tuna and that its primary market is Japan, the Journal relays. The Journal notes that the action is the latest in a series of steps aimed at alleged human-rights abuses in China, which Beijing has denied. The CBP has issued in recent months several orders to police goods imported from the northwest Chinese region of Xinjiang, including a universal ban on imports of cotton and tomato on allegations of forced-labor practices using Muslim minority workers, adds the Journal. On May 26, the U.S. Trade Representative's office asked the World Trade Organization to address forced labor on fishing vessels as part of the group's global fisheries negotiations. The immediate impact of the latest order on the U.S.'s seafood supply will be minimal because of the small import volume from Dalian Ocean Fishing, which U.S. officials said was currently in bankruptcy proceedings, the Journal relays. The Journal relates that CBP said two shipments worth $230,000 of Dalian seafood entered the U.S. last year. But given that there were $21.6 million worth of imports from the company in 2018, the volume could increase significantly once it emerges from bankruptcy, Mr. Miller said. In addition to the detention of actual shipments, Mr. Miller said, the agency's orders have had significant effects to deter companies from importing items that may be seized once arriving in U.S. ports, the Journal adds. Dalian Ocean Fishing Co., Ltd's line of business includes catching finfish. GOLDEN WHEEL: Moody's Assigns B3 Rating to Proposed USD Bond ------------------------------------------------------------ Moody's Investors Service has assigned a B3 senior unsecured rating to the proposed USD bond to be issued by Golden Wheel Tiandi Holdings Company Limited (B3 negative). Golden Wheel plans to use the proceeds from the proposed notes to refinance its offshore debt. RATINGS RATIONALE "Golden Wheel's B3 CFR reflects its (1) track record in developing integrated commercial and residential property projects in Nanjing; and (2) stable recurring income from investment properties. At the same time, the B3 rating reflects Golden Wheel's credit weaknesses including its small operating scale, and its weak liquidity and volatile credit metrics because of its size and geographic concentration," says Cedric Lai, a Moody's Vice President and Senior Analyst. The proposed bond issuance will lengthen Golden Wheel's debt maturity profile and will not have a material impact on its credit metrics. Moody's expects Golden Wheel's adjusted EBIT/interest and revenue/adjusted debt to improve to around 1.0x-1.1x and 32%-35% respectively over the next 12-18 months from the weak levels of 0.7x and 22% in 2020. Meanwhile, Moody's also forecasts that Golden Wheel's rental income will grow moderately to RMB220 million-RMB240 million over the next 12-18 months from RMB208 million in 2020, recovering from the impact from coronavirus last year. Its recurring income/interest coverage will likely improve to 0.4x during the same period compared with 0.3x in 2020. Golden Wheel's liquidity position is weak. Moody's expects that the company's cash holdings and operating cash flow will be insufficient to cover its short-term debt, including USD200 million of offshore bonds maturing and USD255 million of offshore bonds becoming puttable in the first quarter of 2022. However, Moody's believes that the risk is partly tempered by the company's track record of accessing diversified funding channels, including bank and capital markets for debt refinancing. Furthermore, Golden Wheel's investment properties in China and Hong Kong provide the company with an alternate source of liquidity in case of financial stress, as it could sell these properties to meet its debt obligations. Golden Wheel's senior unsecured rating is unaffected by subordination to claims at the operating company level, because the company's creditors benefit from its diversified business profile, including in particular, the cash flow generated from the company's investment properties portfolio. Such business diversification mitigates the structural subordination risk. In terms of environmental, social and governance (ESG) considerations, Golden Wheel's CFR considers the company's concentrated ownership by its key shareholder, Wong Yam Yin's family, who held a 40.60% stake as of the end of 2020. Moody's has also considered (1) the presence of four independent nonexecutive directors on Golden Wheel's eleven-member board of directors, (2) the fact that independent nonexecutive directors chair both the audit and remuneration committees; (3) Golden Wheel's moderate 15%-20% dividend payout ratio over the past three years; and (4) 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 RATING The negative outlook reflects Moody's expectation that the company's liquidity profile will remain weak over the next 12-18 months. Given the negative outlook, a rating upgrade is unlikely. However, the outlook could return to stable if the company improves its liquidity substantially, with its cash/short term debt ratio rising above 1.0x on a sustained basis. On the other hand, the ratings could be downgraded if the company's liquidity deteriorates further. The principal methodology used in this rating was Homebuilding And Property Development Industry published in January 2018. Listed on the Hong Kong Stock Exchange in January 2013, Golden Wheel Tiandi Holdings Company Limited is an integrated commercial and residential property developer, owner and operator, focused on projects in Jiangsu and Hunan provinces. Its projects are either connected or close to metro stations or other transportation hubs. The company also engages in the leasing and operational management of shopping malls owned by third parties. As of March 31, 2021, the company's land bank totaled 1.38 million square meters in gross floor area, situated in Nanjing, Yangzhou, Changsha, Wuxi, Zhuzhou and Hong Kong. HUAI'AN TRAFFIC: Fitch Affirms 'BB' LT IDRs, Outlook Stable ----------------------------------------------------------- Fitch Ratings has affirmed Huai'an Traffic Holding Co., Ltd.'s (HATH) Long-Term Foreign- and Local-Currency Issuer Default Ratings at 'BB'. The Outlook is Stable. Fitch has also affirmed HATH's USD300 million 6% notes due 2022 at 'BB'. The bonds are issued directly by HATH and are rated at the same level as its Long-Term Foreign-Currency Issuer Default Rating. HATH is based in Huai'an, a city in eastern China. The company, which is fully owned by the Huai'an State-owned Assets Supervision and Administration Commission, is the municipality's only platform to fund, invest, construct and maintain transportation infrastructure, such as toll and municipal roads and bridges. It also engages in transportation logistics, commercial trading and other businesses, including restaurants, tourism and advertising. KEY RATING DRIVERS 'Very Strong' Status, Ownership and Control: HATH is a limited liability company under China's company law; its legal status means that its major decisions, including M&A, spin-offs, bankruptcy and liquidation, require approval from the municipal government. The Huai'an municipal government also guides HATH's strategic development, appoints most of its senior management and monitors its financing plan and debt level. HATH is required to regularly report its operational and financial results to the municipality. 'Moderate' Support Record and Expectations: The government supports HATH via annual subsidies. These help to finance the operation of the company's airport, trams, toll roads and ship locks. Transfers and grants were equivalent to around 15% of total revenue in 2020. Assets and capital injections are irregular and where minimal in 2017, 2018 and 2019. 'Moderate' Socio-Political Implications of Default: HATH is the municipality's only investment and financing platform for transportation-related infrastructure. However, its essential services can still be provided even if the company defaults, as there are other government-related entities and private-sector companies that can act as substitutes. 'Strong' Financial Implications of Default: Fitch believes a default by HATH would damage the creditworthiness of Huai'an municipality, reducing its access to funding from banks and capital markets. However, HATH's increasing diversification into construction, trading, logistics, shipping, catering, tourism and other businesses limit the direct financial implications for the municipality. 'b' Standalone Credit Profile: HATH's financial profile is characterised by continued capex and high leverage; leverage, measured by net debt/EBITDA, deteriorated to over 50x in 2020. Fitch expects leverage to remain stable in the medium term, with steady revenue and capex. Fitch assesses HATH's revenue defensibility as 'Weaker' under Fitch's Public Sector, Revenue-Supported Entities Rating Criteria, as its poor pricing power leads to revenue volatility. Fitch considers operating risk as 'Midrange' based on the company's operating profile, including the predictability and volatility of costs. DERIVATION SUMMARY HATH's ratings are assessed under Fitch's Government-Related Entities Rating Criteria, reflecting Huai'an municipality's ownership, direct control and support of the company. Fitch has also factored in the socio-political and financial implications for the municipal government if HATH were to default. The ratings of HATH also consider its Standalone Credit Profile, which is assessed at 'b' under the Public Sector, Revenue-Supported Entities Rating Criteria. RATING SENSITIVITIES Factor that could, individually or collectively, lead to positive rating action/upgrade: -- An upgrade of Fitch's internal credit view of Huai'an municipality's ability to provide subsidies, grants or other legitimate resources allowed under China's policies and regulations, as well as an increase in incentives for the municipality to provide support to HATH, including stronger socio-political and financial implications of default, and a stronger support record, may trigger positive rating action. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- A downgrade of Fitch's internal credit view of Huai'an municipality's ability to provide subsidies, grants or other legitimate resources allowed under China's policies and regulations, as well as a significant weakening in the socio political and financial implications of default, a weaker support record or a dilution of the government's shareholding would lead to negative rating action. -- An improvement or deterioration in the Standalone Credit Profile or HATH's liquidity position would also affect the ratings. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Sovereigns, Public Finance and Infrastructure issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of three notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. 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. MEINIAN ONEHEALTH: Moody's Affirms B2 CFR, Alters Outlook to Stable ------------------------------------------------------------------- Moody's Investors Service has changed Meinian Onehealth Healthcare Holdings Co., Ltd.'s outlook to stable from negative. At the same time, Moody's has affirmed Meinian's Corporate Family Rating of B2. "The affirmation and stable outlook reflect Meinian Onehealth's recovering operating performance, which will improve its credit metrics and liquidity profile over the next 12-18 months," says Shawn Xiong, a Moody's Assistant Vice President and Analyst. "At the same time, refinancing risk has reduced with the company's repayment of its USD200 million senior unsecured notes due in April," adds Xiong. RATINGS RATIONALE Meinian Onehealth's B2 CFR reflects the company's (1) leading position in China's (A1 stable) private medical examination sector, (2) its exposure to the country's growing preventive healthcare industry, and (3) some operational benefits from having Alibaba (China) Technology Co. and its affiliates as the second-largest shareholder group, with an approximate 13% stake as of the end of 2020. On the other hand, the rating is constrained by the integration and execution risks stemming from (1) its weak liquidity profile, (2) its strategy of growing through acquisitions and multistep investments, (3) its shift towards a more premium service offering, and (4) the evolving regulatory environment. Moody's expects Meinian Onehealth's revenue to grow around 10%-15% over the next 12-18 months, while its adjusted EBITDA margin should also increase towards 15% as its operating performance recovers. As a result, the company's leverage -- as measured by adjusted debt/EBITDA -- will likely improve to around 4.0x-4.5x over the next six to 12 months from a high level of around 6.5x in 2020. The lower leverage level is consistent with its B2 rating. Meinian Onehealth's liquidity position is weak. Still, Moody's expects the company's cash balance of around RMB1.4 billion as of the end of March 2021 and likely operating cash flow of RMB1.0 billion-RMB1.2 billion to be insufficient to cover its short-term debt of RMB2.8 billion, and capital expenditure of around RMB1.0 billion-RMB1.2 billion, over the next 12 months. The associated risks are partially tempered by Meinian Onehealth's track record of refinancing its bank borrowings. Meinian Onehealth's rating also considers the following environmental, social and governance (ESG) factors. From a social risk perspective, Meinian Onehealth operates in the highly regulated healthcare services industry. A failure to comply with relevant regulations, or changes in government policies or regulations, could have an adverse impact on its operations. On the governance front, Meinian Onehealth's ownership is concentrated in a small number of shareholders, who have pledged a high ratio of their shares. However, its share pledge has been decreasing in recent periods. The largest shareholder group is Mr. Yu Rong, who together with his affiliates, hold a 19.81% stake in the company, followed by Alibaba (China) Technology Co. and its affiliates' 13.03% stake. This situation is partially tempered by Meinian Onehealth's status as a listed and regulated entity. The company's 11-member board consists of four independent directors. In addition, three members are appointed from Alibaba Group and its subsidiaries. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING The stable outlook reflects Moody's expectations that Meinian Onehealth will maintain a leading position in China's private medical examination sector; improve its operating performance; and maintain its track record of refinancing its bank loans. The rating could be upgraded if (1) the company's operations and revenue recover on a sustained basis; (2) its liquidity profile improves meaningfully and (3) the company maintains access to various funding channels. Moody's could downgrade the rating if (1) the company's revenue and profitability fail to improve meaningfully, such that its adjusted debt/EBITDA exceeds 5.0x on a sustained basis; (2) unexpected future disruptions in its operations lead to a further significant weakening of its liquidity position; or (3) it fails to refinance its upcoming bank loans. The principal methodology used in this rating was Business and Consumer Service Industry published in October 2016. Headquartered in Shanghai, Meinian Onehealth Healthcare Holdings Co., Ltd. is a leading Chinese preventive healthcare solutions provider offering medical examinations and various other services. The company was listed on the Shenzhen Stock Exchange in 2015. SICHUAN LANGUANG: Moody's Lowers CFR to B3 on Weakened Liquidity ---------------------------------------------------------------- Moody's Investors Service has downgraded the corporate family rating of Sichuan Languang Development Co., Ltd. (Languang Development) to B3 from B2. At the same time, Moody's has downgraded to Caa1 from B3 the backed senior unsecured rating on the notes issued by Hejun Shunze Investment Co., Limited and unconditionally and irrevocably guaranteed by Languang Development. Moody's has also changed the outlook to negative from stable. "The downgrade reflects Languang Development's heightened refinancing risk over the coming 12-18 months given its weakened liquidity position and funding access," says Celine Yang, a Moody's Vice President and Senior Analyst. The company has sizable debts becoming due or puttable in the coming 12-18 months, including over RMB16 billion in onshore and offshore bonds and around RMB18 billion in non-standard borrowings, which its cash holdings and operating cash flow will be insufficient to cover. Meanwhile, the company's funding access has weakened, as demonstrated by its highly volatile onshore and offshore bond prices as investors' and creditors' confidence weakened following continuous negative news around the company. "The negative outlook reflects our expectation that the company's liquidity profile will remain weak over the next 12-18 months," adds Yang. RATINGS RATIONALE Languang Development's B3 CFR reflects the company's (1) good track record and well-established market position, especially in Chengdu region; and (2) sizable operating scale and diversified land bank. Nevertheless, the company's rating is constrained by its weak liquidity position due to its sizable upcoming maturities, weakened funding access, as well as material exposure to non-standard borrowings and modest financial metrics. Moody's expects Languang Development will continue to focus on generating internal cash to repay its maturing debts and fund its operations in 2021. The company grew its contracted sales substantially by 133% to RMB25.2 billion in the first quarter of 2021 from a low base of RMB10.8 billion over the same period in 2020, with an estimated cash collection ratio of over 90%. Nevertheless, Moody's expects the company's attributable contracted sales will contract by around 25% to RMB50 billion-RMB55 billion in 2022 as a result of its planned asset disposal and strained ability to replenish land in 2021. This will weaken its operating cash flow, adding further pressure on its weak liquidity profile. Hejun Shunze Investment Co., Limited's Caa1 senior unsecured bond rating is one notch lower than Languang Development's B3 CFR because of structural subordination risk. Most of Languang Development's claims are at the subsidiary level 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. In terms of environmental, social and governance (ESG) considerations, Moody's has considered the company's concentrated ownership, with its chairman, Yang Keng, holding an approximate 56.0% stake in the company as of April 19, 2021. Around 50% of Yang's shareholdings were pledged as of the same date. Moody's has also considered (1) the fact that independent directors chair the company's audit, remuneration and nomination committees; (2) the low level of related-party transactions and dividend payouts; (3) the presence of other internal governance structures and standards as required by the Shanghai Stock Exchange; and (4) the company's financial policy to pursue expansion, which has resulted in its elevated leverage. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade is unlikely given the negative outlook. However, the outlook could return to stable if the company improves its liquidity substantially and maintains its cash/short term debt ratio above 1.0x on a sustained basis. On the other hand, the ratings could be downgraded if the company's liquidity deteriorates further. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in January 2018. Sichuan Languang Development Co., Ltd. primarily develops residential and commercial properties in China. The company was founded in 1993 and listed on the Shanghai Stock Exchange in 2015 through a backdoor listing. As of December 2020, it had a total land bank of 26.4 million square meters in terms of gross floor area. SICHUAN LANGUANG: S&P Cuts Long-Term Issuer Credit Rating to 'B-' ----------------------------------------------------------------- On May 31, 2021, S&P Global Ratings lowered its long-term issuer credit rating on Sichuan Languang Development Co. Ltd. to 'B-' from 'B+'. S&P also lowered the long-term issue rating on the company's outstanding guaranteed U.S.-dollar-denominated debt to 'CCC+' from 'B'. S&P placed the ratings on CreditWatch with negative implications. S&P said, "We expect to resolve the CreditWatch in the next 30-60 days after we have details on Sichuan Languang's project disposals to assess their impact on debt repayment. We will also consider the company's ability to maintain its bank and non-bank financing channels. "We downgraded Sichuan Languang because the company's significantly deteriorating liquidity may not improve without new funding sources." The company is unable to access capital market financing channels, given the volatility in prices of its capital market instruments, both domestically and offshore. Sichuan Languang's recent dispute with a trust company over loan extension signals the property developer's increasing difficulty in managing its large exposure to non-bank financing. Sichuan Languang is also facing difficulty to mobilize a considerable portion of its cash in some of its projects. Meanwhile, including puttable dates, the company faces Chinese renminbi (RMB) 4.5 billion in domestic bond maturities alone for the remainder of 2021, mostly due in the third quarter. S&P revised its assessment of the company's liquidity to weak from adequate to reflect its view that its cash position will erode for a prolonged period as it looks to repay its debt maturities. Sichuan Languang is working on contingent plans for debt repayment. This includes sale of a stake in development projects and reducing discretionary investments such as land replenishments. The company recorded an operating cash flow inflow of RMB1.6 billion in the first quarter of 2021, versus an outflow of RMB3.9 billion in the same period last year. Sichuan Languang spent only RMB1 billion for new land in the first quarter. Meanwhile, its recent disposal of shares in subsidiary Sichuan Languang Justbon Service Group Co. Ltd. (Languang Justbon) for RMB4.9 billion did not restore market confidence or sufficiently boost liquidity. S&P said, "We believe a large portion of Sichuan Languang's cash balance is trapped at subsidiaries or joint venture companies and is not available for debt repayment.Joint venture partners or banks are cautious in letting Sichuan Languang upstream cash from the project level. The holding company's cash balance is also marginal, considering the amount of upcoming debt maturities and the need to manage other operational spending. We also believe banks will hold up these sales proceeds for repayment of construction loans due within one year or even longer." Projects sales remain an effective way to bring in fresh liquidity. Transfer of controlling ownership in projects could help Sichuan Languang to pass on and deconsolidate some trust loans, especially ones with short maturities. S&P believes the company has already started some projects sales. However, the aggregate amount is not sufficient to qualify for public disclosures. Relationships with trust companies and banks will be key for Sichuan Languang to sustain its liquidity position. Early repayments, or non-extension or rollover for trust loans could further tighten the company's liquidity. Sichuang Languang has RMB12 billion in trust loans due within 2021. S&P said, "Nevertheless, we consider banks calling for early debt repayment as less likely, given bank loans are generally secured by project assets. As long as contracted sales remain satisfactory, Sichuan Languang should be able to manage most of its secured bank lenders. According to industry data, Sichuan Languang's contracted sales grew 66% year-on-year in the first four month to about RMB35 billion. "We expect to resolve the CreditWatch in the next 30-60 days after we have the details on Sichuan Languang's project disposals to assess their impact on its liquidity position, especially the debt and bond maturities in the third quarter of the year." Sichuan Languang's relationships with trust companies and other lenders will also play a key role because further disputes or enforcement could worsen the company's liquidity. S&P said, "We could lower the rating if Sichuan Languang's project disposals are slower than we expect, or the proceeds are less than sufficient to manage the repayment plan for upcoming bond maturities. "We could also downgrade Sichuan Languang if the company's banking and trust company relationships deteriorate and access to capital markets is effectively suspended, increasing refinancing pressure. "We could affirm the rating with a stable outlook if Sichuan Languang efficiently executes its project disposals and brings a significant amount of liquidity to cover a large part of its short-term maturities. In such a scenario, we would also expect the company to maintain current relationships with banks and trust companies, such that banking lines and trust funding continue to be stable." SINIC HOLDINGS: Fitch Affirms 'B+' LT IDR, Outlook Stable --------------------------------------------------------- Fitch Ratings has affirmed China-based homebuilder Sinic Holdings (Group) Company Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B+'. The Outlook is Stable. Fitch has also affirmed Sinic's senior unsecured rating at 'B+' with a Recovery Rating of 'RR4'. The rating affirmation is based on Sinic's moderate leverage at 45%-50% after deleveraging in 2020, ability to maintain a sales scale at CNY50 billion and healthy EBITDA margin of above 20%. Even so, Sinic's ratings are constrained by leverage, which is higher than 'BB-' peers of below 45%, while it has yet to establish a solid, long record of operation after completing a nationwide layout in 2019. Sinic's leverage is net debt (including guarantees to joint ventures (JVs) and associates)/adjusted inventory. KEY RATING DRIVERS Moderate Leverage: Fitch expects Sinic's leverage to stay at 45%-50% in the forecast period 2021-2023, as the company plans to spend no more than 40% of sales proceeds on land acquisition and provide fewer debt guarantees to its JVs and associates. Sinic aims to reduce external guarantees each year (end-2020: CNY7.1 billion; end-2019: CNY8.6 billion) and instead of full guarantees to JVs and associates, it would only provide guarantees on a pro rata basis. Deleveraged in 2020: Sinic's leverage decreased to 47.6% by end-2020 from 60.5% at end-2019. This was due mainly to controlled land acquisition, which accounted for 40% of sales proceeds compared with above 50% in previous years, less guarantees provided to JVs and associates and increasing usage of non-controlling interest (NCI). Significant Minority Shareholders: Total NCI in Sinic's balance sheet increased to CNY9.2 billion by end-2020, from CNY6.7 billion at end-2019 and CNY0.8 billion at end-2018, as minority shareholders injected capital into Sinic's projects. NCI accounted for 48.2% of total equity at end-2020, which was high among peers. This reduces Sinic's financial flexibility compared with homebuilders with lower NCI, which can potentially dispose of stakes in projects to reduce leverage. Hence, Fitch tightened the upgrade threshold on leverage to 40% from 45% to reflect the high NCI exposure. Decreased Margin; Still Healthy: Fitch estimates Sinic's profitability will trend down to 20%-25% in 2021-2023 from more than 30% in 2018-2019, to be more in line with industry trend. It will also reflect the company's rising presence in regions outside of its home markets of Jiangxi province, and more projects will be acquired through thinner-margin public land auctions. Sinic's EBITDA margin after capitalised interest decreased to 27% in 2020 from 31% in 2019, with more projects acquired from open market instead of M&A booked during the year. More Balanced Nationwide Layout: Sinic completed its nationwide layout in 2019 and further strengthened its presence in its four core regions of Jiangxi province, Greater Bay Area, Yangtze River Delta, and central and western China in 2020. These four regions contributed 31%, 24%, 28% and 17%, respectively, of attributable sales in 2020 - Jiangxi accounted for more than half of sales in 2019. Meanwhile, Sinic continues to be the largest homebuilder in Nanchang, the provincial capital of Jiangxi, and the one of the top 10 homebuilders in Huizhou in the Greater Bay Area. Attributable sales rose by 12% to CNY50 billion in 2020 from CNY45 billion in 2019, mainly attributed to a 15% increase in the average selling price (ASP) with more sales in the Yangtze River Delta region. Short Operating History: Sinic only acquired its first piece of land in 2010 and started to expand nationally from its home market, Nanchang, in 2016, when the Chinese property sector was in an upcycle. Its ability to weather a downturn is untested. Sinic has operations in 15 cities with only one project each, which may lead to higher operating costs. Adequate, Quality Land Bank: Sinic's land bank is mainly in tier 2-4 cities in four main regions, and supports a contracted ASP of CNY15,000/sqm. Nanchang and Huizhou, where Sinic remains a top player, accounted for 51% of the attributable land bank at end-2020. Sinic's attributable unsold land reserves of 10.4 million sqm as of end-2020 are sufficient for development over the next three years. DERIVATION SUMMARY Sinic's business profile is supported by a leading market position in Jiangxi and increasing diversification outside home markets, healthy margins and operating scale. Sinic's attributable contracted sales scale of CNY50 billion in 2020 was larger than the CNY30 billion-40 billion of other 'B+' peers, such as Fantasia Holdings Group Co., Limited (B+/Stable) and Hong Yang Group Company Limited (B+/Stable). However, Sinic's 2020 revenue scale of CNY28 billion was smaller than most 'BB-' peers, including China SCE Group Holdings Limited (BB-/Stable) and Times China Holdings Limited (BB-/Stable). Meanwhile, Sinic's ratings are constrained by leverage, which is higher than 'BB-' peers of below 45%, and its short operational record. Sinic's land bank is also more widely spread across China than that of Hong Kong JunFa Property Company Limited (Junfa, B+/Stable), the leading property developer in Yunan province. Junfa's land bank is highly concentrated in Kunming. Sinic has a higher churn rate in terms of contracted sales to total debt but a lower EBITDA margin. Junfa has much stronger recurring income interest coverage and a longer record in maintaining leverage at 45%-50%. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Attributable contracted sales of CNY50 billion-60 billion a year in 2021-2023; -- Land premium accounting for 40%-45% of sales proceeds during 2021-2023; -- Land bank life at 2.5 to three years during 2021-2023; -- Construction expenses accounting for 40%-45% of sales proceeds during 2021-2023; -- Funding cost at 8.5%-9.0% during 2021-2023. KEY RECOVERY RATING ASSUMPTIONS -- The recovery analysis assumes that Sinic would be liquidated in a bankruptcy rather than a going-concern, given the asset heavy nature of the China homebuilding sector. -- 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. -- 30% haircut to adjusted net inventory in light of Sinic's EBITDA margin of around 20%-25% in the forecast; -- 90% haircut to investment properties given low rental yield of less than 1%. Sinic's investment property is evaluated at CNY185 million, based on 6.5% rental yield, or less than 10% of CNY2.4 billion book value at end-2020; -- 30% standard haircut to account receivables; -- 40% standard haircut to buildings under net property, plant and equipment; -- No haircut on restricted cash; while 0% advance rate for available cash because it is insufficient to cover minimum cash requirement, or three-month attributable contracted sales (2020: around CNY17 billion). The allocation of value in the liability waterfall results in recovery corresponding to an 'RR1' Recovery Rating for the senior unsecured debt. However, the Recovery Rating for the senior unsecured debt is at 'RR4' because under Fitch's Country-Specific Treatment of Recovery Ratings Criteria, 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: -- Leverage (net debt/adjusted inventory) sustained below 40%; -- Revenue and contracted sales scale in line with 'BB-' peers. Factor that could, individually or collectively, lead to negative rating action/downgrade: -- Leverage (net debt/adjusted inventory) above 50% for a sustained period. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: Sinic had CNY13.9 billion in cash (including CNY10.9 billion in unrestricted cash and CNY3 billion in time deposits) at end-2020, adequate to cover CNY14 billion in short-term debt, which included CNY4.6 billion in capital market maturities, CNY5.4 billion in non-bank loans and CNY4 billion bank loans. Sinic had CNY65 billion unused credit facilities from banks and non-bank financial institutions at end-2020, as well as CNY0.6 billion available for sale investments, which consisted mainly of equity investments in HK-listed homebuilders. Sinic issued USD250 million in offshore bond markets in January 2021, and CNY255 million in the onshore bond market in March 2021, as part of refinancing capital market maturities in 1H21. Less Trust Loans; Short Debt Profile: Sinic has been exploring broadening financing channels. It managed to reduce the percentage of trust loans among total borrowing to 31% by end-2020 from 50% at end-2019, after tapping offshore US dollar bonds and onshore ABS markets in 2020. It issued USD740 million in senior notes and CNY1.2 billion in ABS. However, there was not a material improvement in Sinic's debt maturity profile, as short-term debt accounted for 48% of total debt at end-2020 (44% at end-2019). Management aims to control short-term debt within 30%-40% of total debt, through replacing short-tenor trust loans with longer-tenor bank loans and capital market instruments, including ABS. ISSUER PROFILE Shanghai-headquartered Sinic is the largest property developer in Jiangxi province, and it has expanded into the Yangtze River Delta Region and the Greater Bay Area, as well as core cities in central and western China. Sinic is 83.19% owned by the trusts of the founder, Mr Zhang Yuanlin. SUMMARY OF FINANCIAL ADJUSTMENTS -- Added back capitalised interest in cost of goods sold when calculating the EBITDA margin. -- Fitch's calculation of CNY40.4 billion adjusted inventory at end-2020 included: CNY22.2 billion net inventory (inventory – customer advance, in which inventory included land use right, prepayments for acquisitions and excluded outstanding considerations for acquisitions); CNY56 million buildings under property, plant and equipment; CNY1.8 billion investment properties at cost; CNY16.7 billion net claims from JVs and associates (investment in JVs/associates + due from JVs/associates - due to JVs/associates), and excluded CNY333 million net claims to NCI (amount due from NCI - amount due to NCI); -- Fitch also included guarantees for JVs and associates (end 2020: CNY7.1 billion) in the net debt calculation. 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. ZHONGYU GAS: Fitch Withdraws 'B+' Rating on USD Sr. Unsec. Notes ---------------------------------------------------------------- Fitch Ratings has withdrawn the 'B+' rating on Chinese gas distributor Zhongyu Gas Holdings Limited's (B+/Positive) proposed US dollar senior unsecured notes. Fitch is withdrawing Zhongyu Gas's bond rating because the bonds were not issued. KEY RATING DRIVERS Key rating drivers do not apply, as the bond rating has been withdrawn. RATING SENSITIVITIES Not applicable. 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. ========= I N D I A ========= AJANTA SPINTEX: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Ajanta Spintex Private Limited (ASPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 14.0 CRISIL D (Issuer Not Cooperating) Long Term Loan 22.0 CRISIL D (Issuer Not Cooperating) Proposed Long Term 5.5 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with ASPL 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 ASPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on ASPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of ASPL continues to be 'CRISIL D Issuer Not Cooperating'. ASPL, which was set up in 2010, by the promoter, Mr. I Dhana Reddy and his family members, manufactures cotton yarn. The manufacturing facility, near Guntur (Andhra Pradesh), has a capacity of around 25,000 spindles. CHAMPION GROUP: CRISIL Keeps B Debt Rating in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Champion Group of Company (CGC) continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.5 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with CGC 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 CGC, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CGC is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CGC continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Set up in 1994 in Patna as a proprietorship firm by Mr. Amit Singh, CGC trades in rice and sand. CORPORATE FASHION: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Corporate Fashion Private Limited (CFPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6.54 CRISIL D (Issuer Not Cooperating) Letter of Credit 1.25 CRISIL D (Issuer Not Cooperating) Long Term Loan 1.31 CRISIL D (Issuer Not Cooperating) Standby Letter 0.90 CRISIL D (Issuer Not of Credit Cooperating) CRISIL Ratings has been consistently following up with CFPL 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 CFPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on CFPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of CFPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. CFPL was incorporated in fiscal 2011, promoted by Mr. Prateek Sharma, Mr. Vijay Pal Singh, and Mr. Prakash Jat. The company, based in Bhilwara, Rajasthan, manufactures readymade garments, mainly trousers for men, and also trades in fabric and readymade garments. Commercial operations began in 2014. DHIR GLOBAL INDUSTRIA: Insolvency Resolution Process Case Summary ----------------------------------------------------------------- Debtor: Dhir Global Industria Private Limited 14, Navjivan Vihar New Delhi 110017 Insolvency Commencement Date: May 26, 2021 Court: National Company Law Tribunal, New Delhi Bench Estimated date of closure of insolvency resolution process: November 22, 2021 Insolvency professional: Mr. Vijay Kumar Gupta Interim Resolution Professional: Mr. Vijay Kumar Gupta K.G. Somani Insolvency Professionals Private Limited 3/15, 4th Floor Asaf Ali Road Delhi 110002 E-mail: guptavk995@gmail.com dhirglobalkgs@gmail.com Last date for submission of claims: June 9, 2021 FUCON TECHNOLOGIES: CRISIL Keeps D Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Fucon Technologies Limited (FTL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft Facility 2.9 CRISIL D (Issuer Not Cooperating) Working Capital 11.6 CRISIL D (Issuer Not Demand Loan Cooperating) CRISIL Ratings has been consistently following up with FTL 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 FTL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on FTL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of FTL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. FTL, incorporated by Mr. Rahul Parikh in 1999, provides various anti-ageing car-care services such as anti-corrosive treatment, Teflon coating, car interior cleaning and engine coating and flushing. It is an authorised car-careservices provider for Maruti Suzuki India Ltd, Hyundai Motors India Ltd and Mahindra & Mahindra. Currently, its operations are ceased. GATI INFRASTRUCTURE: Insolvency Resolution Process Case Summary --------------------------------------------------------------- Debtor: M/s. Gati Infrastructure Private Limited Legend Platinum, 4th Floor Plot No. 20, Survey No. 12 Kothaguda, Kondapur Hyderabad, Telangana Insolvency Commencement Date: April 26, 2021 Court: National Company Law Tribunal, Hyderabad Bench Estimated date of closure of insolvency resolution process: October 22, 2021 Insolvency professional: Prabhakar Nandiraju Interim Resolution Professional: Prabhakar Nandiraju D.No. 11-12-7, Road No. 1 Income Tax Colony Sree Ramakrishna Puram Kothapet, Hyderabad 500035 E-mail: pnandiraju26@gmail.com Last date for submission of claims: May 11, 2021 GOMUR FABRICS: CRISIL Lowers Rating on INR7.5cr Cash Loan to B -------------------------------------------------------------- CRISIL Ratings has revised the rating on bank facilities of Gomur Fabrics Private Limited (GFPL) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7.5 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with GFPL 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 GFPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GFPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GFPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. Established in 1987 and promoted by Mr. Lalit Agarwal and his family, GFPL manufactures suiting and shirting fabrics at its unit in Bhilwara (Rajasthan). The operations are managed by Mr. Lalit Agarwal and his family members Mr. Ramesh Agarwal and Mr. Raj Kumar Agarwal. GOVIND AGRO: CRISIL Lowers Rating on INR30cr Cash Loan to B ----------------------------------------------------------- CRISIL Ratings has revised the rating on bank facilities of Govind Agro Foods (GAF) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 30 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with GAF 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 GAF, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GAF is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GAF Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. Set up in July 2009 as a partnership firm by Mr. Subhash Chand and his son, Mr. Neeraj Kumar, GAF processes basmati rice and sells to domestic players, which export it to the Middle East. GURUDEVA INDUSTRIES: CRISIL Keeps B Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Sri Gurudeva Industries (SGI; part of the Basaveshwara group) continue to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 2.65 CRISIL B/Stable (Issuer Not Cooperating) Proposed Long Term 2.35 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating) Cash Credit/ 8.00 CRISIL B/Stable (Issuer Not Overdraft facility Cooperating) CRISIL Ratings has been consistently following up with Gurudeva Industries 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 SGI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SGI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SGI continues to be 'CRISIL B/Stable Issuer Not Cooperating'. For arriving at the rating, CRISIL Ratings has combined the business and financial risk profiles of Sri Basaveshwara Rice Mill (SBRM) and SGI. This is because both the entities, together referred to as the Basaveshwara group, have a common management team and sell their products under the BTC brand. Furthermore, there are significant operational fungibilities between the two entities, with common customer and supplier base, and a shared storage facility. The Basaveshwara group mills steamed and raw rice. Its manufacturing facility is located at Chitradurga (Karnataka). The group is promoted by Mr. H Basavaraj Setty, along with his brother Mr. H Kotresh Setty and two brothers-in-law Mr. M R Sanjeev Setty and Mr. M Sanjeev. The promoters have been in the rice milling business since 2002. GVRMP WHAGDHARI: CRISIL Keeps D Debt Rating in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of GVRMP Whagdhari Ribbanpally Tollway Private Limited (GVRMP) continues to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 202 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with GVRMP 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 GVRMP, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on GVRMP is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of GVRMP continues to be 'CRISIL D Issuer Not Cooperating'. GVRMP is a special purpose vehicle (SPV) set up as a joint venture in 2010 by GVR Infra Projects Ltd, RMN Infrastructures Ltd, and the Prathyusha group (51:25:24) to improve and widen a 141.2-kilometre stretch (from Maharashtra border to Andhra Pradesh [Whagdhari-Ribbanpally]) of State Highway-10 on build-operate-transfer toll basis. Commercial operations began in September 2012. HIMAVASINI MOTORS: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Himavasini Motors Private Limited (HMPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 5 CRISIL D (Issuer Not Cooperating) Proposed Long Term 0.16 CRISIL D (Issuer Not Bank Loan Facility Cooperating) Term Loan 1.84 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with HMPL 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 HMPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on HMPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of HMPL continues to be 'CRISIL D Issuer Not Cooperating'. HMPL was a founded in Krishnagiri (Tamil Nadu) in 2010. The company is promoted by Mr. Suresh Kumar and his family members, and runs a commercial vehicle showroom in the district. HMPL is an authorised dealer for commercial vehicles of Tata Motors Ltd. IMPEX INDIA: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Impex India-Dehradun (II-D) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Term Loan 0.87 CRISIL D (Issuer Not Cooperating) Term Loan 9.13 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with II-D for obtaining information through letters and emails dated January 30, 2021 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 II-D, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on II-D is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of II-D continues to be 'CRISIL D Issuer Not Cooperating'. II-D was established as a partnership concern between Mr. Rajendra Mimani, Mrs Saroj Mimani, and Mr. Ashish Mimani-with equal profit sharing ratio-in 1973. The firm was involved in a marketing business, but has now undertaken a solar power project, backed by a long-term power purchase agreement with UPCL. LAMIYA SILKS: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Lamiya Silks - Triprayar (LS) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.9 CRISIL D (Issuer Not Cooperating) Proposed Cash 0.33 CRISIL D (Issuer Not Credit Limit Cooperating) Term Loan 0.77 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with LS 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 LS, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on LS is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of LS continues to be 'CRISIL D Issuer Not Cooperating'. LS is a Kerala-based firm, engaged in retailing of readymade garments. The firm was set up by Mr. Abdul Jabbar in 2008. Daily operations are being managed by Mr. Abdul and his son, Mr. Ashik. 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. 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. MAA SARASWATI: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Maa Saraswati Education Society (Regd.) (MSES) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 8.9 CRISIL D (Issuer Not Cooperating) Overdraft Facility 1.1 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with MSES 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 MSES, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MSES is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MSES continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. MSES is registered in Haryana under the Indian Societies Act, 1860, with an objective of setting up educational institutes. The society has set up Maa Saraswati Institute of Engineering And Technology at Kalanaur, Rohtak (Haryana) for providing engineering and management courses. Mr. Radhey Shyam, the president of the society, manages operations. MALLEMAALA ENTERTAINMENTS: CRISIL Cuts Rating on Loans to B ----------------------------------------------------------- CRISIL Ratings has revised the ratings on bank facilities of Mallemaala Entertainments Private Limited (MEPL) to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 18.25 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') Long Term Loan 18.75 CRISIL B/Stable (ISSUER NOT COOPERATING; Revised from 'CRISIL BB-/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with MEPL 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 MEPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on MEPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of MEPL Revised to 'CRISIL B/Stable Issuer Not Cooperating' from 'CRISIL BB-/Stable Issuer Not Cooperating'. Incorporated in 1992, Mallemaala Entertainments Private Limited (MEPL) is engaged in production of television content exclusively for ETV. The company also has a poultry layer farm with 6 lac bird capacity and a feed plant with an installed capacity of 8 ton/hr. The poultry business was acquired from a group entity, Mallemaala Agro P Ltd in 2016. The company is promoted by Mr. M. Shyam Prasad Reddy and his family. NATH MOTORS: CRISIL Lowers Rating on INR60cr Loans to D ------------------------------------------------------- CRISIL Ratings has downgraded the rating on the bank facilities of Nath Motors Pvt Ltd (NMPL) to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating' because of delay in meeting debt obligation by the company. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Inventory Funding 26.25 CRISIL D (ISSUER NOT Facility COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') Proposed Long Term 33.75 CRISIL D (ISSUER NOT Bank Loan Facility COOPERATING; Downgraded from 'CRISIL B+/Stable ISSUER NOT COOPERATING') CRISIL Ratings has been consistently following up with NMPL through letters and emails, dated November 21, 2020, 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 management, CRISIL Ratings did not receive any information on the financial performance or strategic intent of NMPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. The rating action on NMPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on the bank facilities of NMPL has been downgraded to 'CRISIL D Issuer Not Cooperating' from 'CRISIL B+/Stable Issuer Not Cooperating' because of delay in meeting debt obligation by the company. Incorporated in 2002, NMPL is an authorised dealer for passenger vehicles and spare parts of Honda Cars India Ltd (Honda) since April 2013. The company operates showrooms in Delhi and Faridabad under the brand, Delight Honda, equipped with 3S (sales, service and spares) facilities. NEW AGE: CRISIL Keeps D Debt Ratings in Not Cooperating Category ---------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of New Age False Ceiling Private Limited (NAFCPL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3 CRISIL D (Issuer Not Cooperating) Letter of Credit 2 CRISIL D (Issuer Not Cooperating) Proposed Long Term 3 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with NAFCPL 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 NAFCPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on NAFCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of NAFCPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. NAFCPL, incorporated in 2008, manufactures false ceilings at its facility in Nagpur, Maharashtra. It started production in 2012; before that, it traded in false ceiling materials. Mr. Manoj Gupta and family are the promoters. PRASHANTH POULTRY: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Prashanth Poultry Private Limited (PPPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4.45 CRISIL D (Issuer Not Cooperating) Long Term Loan 10.77 CRISIL D (Issuer Not Cooperating) Proposed Cash 3.00 CRISIL D (Issuer Not Credit Limit Cooperating) Proposed Long Term 0.78 CRISIL D (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with PPPL 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 PPPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on PPPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of PPPL continues to be 'CRISIL D Issuer Not Cooperating'. PPPL, set up in 2005, and promoted by Mr. V Bhaskar Rao and his family is in the poultry business; it produces eggs at its unit in Mahbubnagar, Andhra Pradesh. RADHIKA JEWELS: CRISIL Keeps B Debt Rating in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Radhika Jewels (RJ) continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 15 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with RJ 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 RJ, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RJ is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RJ continues to be 'CRISIL B/Stable Issuer Not Cooperating'. RJ was established in 2007 by Mr. Hiren Patadia and his family members. The firm manufactures and retails diamond, gold, and silver jewellery. It has a jewellery mall in Vadodara. REFKINGS COTT: CRISIL Keeps B Debt Rating in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the rating on bank facilities of Refkings Cott Soya Private Limited (RCPL) continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Proposed Term Loan 12 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with RCPL 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 RCPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on RCPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of RCPL continues to be 'CRISIL B/Stable Issuer Not Cooperating'. RCPL incorporated in 2016 and promoted by the Singare family is setting up an industrial unit for refining of raw oil of cotton seed, soyabeans and palm oil. The same is expected to have a capacity of 200tonnes/day in Jalna, Maharashtra. 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 8.0 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. SHANTI NIKETAN: CRISIL Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Shanti Niketan Trust (SNT) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft Facility 0.65 CRISIL D (Issuer Not Cooperating) Term Loan 6.53 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SNT 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 SNT, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SNT is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SNT continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. SNT was set up in 2008 in Meerut and offers courses in engineering, MBA, Post Graduate Diploma in Management (PGDM), and polytechnic. The trust has sanctioned capacity of 1000 students (360 in bachelor of technology, 120 in PGDM, 120 in MBA, 300 in polytechnic, and 100 in bachelor of education) and is affiliated to Mahamaya Technical University. SHIV RICE: CRISIL Keeps B Debt Ratings in Not Cooperating --------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Shiv Rice Mill (SRM) 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 2.65 CRISIL B/Stable (Issuer Not Bank Loan Facility Cooperating) Term Loan 1.35 CRISIL B/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with SRM 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 SRM, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SRM is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SRM continues to be 'CRISIL B/Stable Issuer Not Cooperating'. Established in 2008, SRM mills non-basmati parboiled rice. Its manufacturing facility is in Murshidabad (West Bengal). The firm is owned by the Murshidabad-based Mr. Goutam Bhakat and Ms. Nafisa Begam and their family members. The operations are managed by Mr. Goutam Bhakat. SRM sells rice under the 'Shiv Rice' brand in the open market; it also mills rice on a jobwork basis for government agencies. SHIVADARSHAN AGRO: CRISIL Keeps B+ Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Shivadarshan Agro Industries (SAI) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 8 CRISIL B+/Stable (Issuer Not Cooperating) Proposed Long Term 1 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating) CRISIL Ratings has been consistently following up with SAI 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 SAI, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SAI is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SAI continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Set up in 2001 as a partnership firm, Karnataka-based SAI mills and processes paddy into rice, rice bran, broken rice, and husk. It has an installed paddy milling capacity of 70 tonnes per day. Its operations are managed by Mr. Balakrishna C Nayak. SHYAMALI COLD: CRISIL Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Shyamali Cold Storage Private Limited (SCSPL) continue to be 'CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 3.45 CRISIL D (Issuer Not Cooperating) Long Term Loan 2.80 CRISIL D (Issuer Not Cooperating) Working Capital 0.75 CRISIL D (Issuer Not Term Loan Cooperating) CRISIL Ratings has been consistently following up with SCSPL 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 SCSPL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SCSPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SCSPL continues to be 'CRISIL D Issuer Not Cooperating'. SCSPL, incorporated in 2005, is engaged in the business of providing cold storage services to the potato farmers and traders. The company is owned by West Bengal based Rudra family. GCSPL's cold storage, having storage capacity of about 2 lakh quintal. The facility is located in Burdwan district of West Bengal. SRAVANI RAW: CRISIL Keeps B- Debt Ratings in Not Cooperating ------------------------------------------------------------ CRISIL Ratings said the ratings on bank facilities of Sravani Raw & Boiled Rice Mill (SRBRM) continue to be 'CRISIL B-/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL B-/Stable (Issuer Not Cooperating) Long Term Loan 2 CRISIL B-/Stable (Issuer Not Cooperating) Proposed Cash 1 CRISIL B-/Stable (Issuer Not Credit Limit Cooperating) CRISIL Ratings has been consistently following up with SRBRM 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 SRBRM, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SRBRM is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SRBRM continues to be 'CRISIL B-/Stable Issuer Not Cooperating'. Set up in 2010, SRBRM is engaged in milling of raw and par-boiled rice. The firm is promoted by Mr.L.Durga Prasad and his family members. VIJAYA LAKSHMI: CRISIL Keeps B+ Debt Ratings in Not Cooperating --------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of Sri Vijaya Lakshmi Raw and Boiled Rice Mill (SVRB) continue to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 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 SVRB 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 SVRB, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on SVRB is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of SVRB continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Established in 1983, SVRB processes rice and is a partnership firm set-up by Mr. B Purna Chandra Rao and family.Its manufacturing facility is based in Maddipadu, in Prakasam district (Andhra Pradesh). VIL INTERNATIONAL: CRISIL Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------------- CRISIL Ratings said the ratings on bank facilities of VIL International Private Limited (VIL) continue to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 4 CRISIL D (Issuer Not Cooperating) Letter of Credit 10 CRISIL D (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with VIL 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 VIL, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on VIL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of VIL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'. VIL, based in Chennai, trades in timber and medium-density fibre boards. It was set up by Mr. Venkat Immanni and Mr. Satya Rao in 2001. YADAV RICE: CRISIL Keeps B+ Debt Ratings in Not Cooperating ----------------------------------------------------------- CRISIL Ratings said the rating on bank facilities of Yadav Rice Mills (YRM) continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 6 CRISIL B+/Stable (Issuer Not Cooperating) CRISIL Ratings has been consistently following up with YRM 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 YRM, which restricts CRISIL Ratings' ability to take a forward looking view on the entity's credit quality. CRISIL Ratings believes that rating action on YRM is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the ratings on bank facilities of YRM continues to be 'CRISIL B+/Stable Issuer Not Cooperating'. YRM was set up by Mr. Pankaj Yadav and family of Muktsar (Punjab) in 1997 as a partnership firm. It mills and processes paddy into basmati rice, rice bran, broken rice and husk. Mr. Om Prakash Yadav, the key partner, manages the business. ZERO MICROFINANCE: CRISIL Keeps B- Debt Rating 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. ================= I N D O N E S I A ================= GARUDA INDONESIA: Confirms Debt Revamp Plans as COVID Hit Cashflows ------------------------------------------------------------------- Rieka Rahadiana at Bloomberg News reports that Indonesia's flag carrier PT Garuda Indonesia confirmed it is taking steps to restructure its debt and revamp its business in order to stay afloat amid the pandemic. Bloomberg relates that the airline is negotiating terms with plane lessors and is talking with banks and business partners to restructure its loans, according to a stock exchange filing submitted on May 27. According to Bloomberg, the coronavirus outbreak has forced dozens of airlines and other aviation businesses to restructure or seek bankruptcy protection. For Garuda, failure to execute the restructuring program could result in an abrupt end of the 71-year-old carrier because of negative cashflow and minus 41 trillion rupiah ($2.9 billion) in equity, according to an audio recording of President Director Irfan Setiaputra's address to staff last week. "Everything that the company is doing is aimed at maintaining operational performance and preserving liquidity that has been significantly impacted by the Covid-19 pandemic," Garuda said in the statement, which confirms a recording heard by Bloomberg over the weekend. As part of the restructuring, Garuda plans to expand its cargo business, increasing its contribution to total operating revenue to 40% from 10% to 15% currently, it said in the filing. Its total liabilities stood at around $3.5 billion as of Sept. 30, according to its latest available financial report, Bloomberg relays. The oldest airline in Southeast Asia's biggest economy has 142 aircraft to serve more than 90 more domestic and international destinations, Bloomberg discloses citing a presentation on the airline's website. The management has indicated it won't operate more than 70 as it undergoes a comprehensive restructure, the report adds. Headquartered in Jakarta, Indonesia, government-owned airline PT Garuda Indonesia -- http://www.garuda-indonesia.com/-- provides airline services. The Company offers domestic and international flights, online check in, and associated services for passengers, baggage, and cargo. ========= J A P A N ========= MT GOX: Voting on a Proposal to Reimburse Victims Begins --------------------------------------------------------- Colin Harper at Coindesk reports that the trustee presiding over the Mt. Gox civil rehabilitation case has taken the next step toward partially reimbursing victims who lost money to the cryptocurrency exchange in hacks that date back nearly a decade. As of June 1, claimants can begin to vote on whether or not they will accept the civil rehabilitation proposal. The deadline for claimants to cast their vote online is Oct. 8, the report discloses. Since a minimum threshold of 50% of votes is required in order for the proposal to pass, there is a chance that the proposal could fail even if the majority of votes actively cast vote in favor of acceptance, Coindesk relates. According to a letter sent to claimants last year, the proposed payout would reimburse creditors in both JPY and BTC/BCH. The total value of each claim is denominated in Japanese yen (JPY) with each bitcoin being pegged to nearly $7,000, the rough price of bitcoin when the civil rehabilitation began in 2018 (not the $37,000 price of today, but also not the few hundreds of dollars bitcoin was trading at when Mt. Gox fell). Mt. Gox was hacked recurrently from 2012-2014, eventually driving it into insolvency. Since 2014, bankruptcy proceedings have evolved into these rehabilitation proceedings. The drawn-out drama means some exhausted creditors sold their claims to law firms, individuals and other stakeholders in the case. According to the terms of the proposal, if a claimant filed a fiat bankruptcy claim back in the day, they would be entitled to a priority payment for the full sum lost plus damages, Coindesk relays. For everyone else, there are a few options, Coindesk says. First, all approved creditors will receive a base payment of up to JPY200,000 (approximately US$1,800) that will count toward their total claim. Coindesk relates that from there, they can choose between two options: They can opt for a faster, early-sum payment which will reimburse them for about 21% of their first claim. Or, they can also choose to wait for what could be potentially a few more percentage points, but this isn't guaranteed. About Mt. Gox Tokyo-based MtGox Co., Ltd., operated a virtual currency transaction system. Mt.Gox was the largest exchange for most of Bitcoin's existence and was handling about 6 percent of all Bitcoins in circulation. In February 2014, MtGox Co., Ltd., announced in that it was filing for bankruptcy after tens of millions of dollars worth of the virtual currency and client funds disappeared. In March 2014, MtGox sought bankruptcy protection in Japan. The bankruptcy in Japan came after the bitcoin exchange lost 850,000 bitcoins valued at about $475 million "disappeared." The Company filed a petition under Chapter 15 of the U.S. Bankruptcy Code on March 9, 2014. It filed for bankruptcy protection in the U.S. to prevent customers from targeting the cash it holds in U.S. bank accounts. The Chapter 15 case is In re MtGox Co., Ltd., Case No. 14-31229 (Bankr. N.D. Tex.). The Chapter 15 Petitioner is Robert Marie Mark Karpeles, the company's chief executive officer. Mr. Karpeles is represented by John E. Mitchell, Esq., and David William Parham, Esq., at Baker & Mcckenzie LLP, in Dallas, Texas. The bankruptcy trustee and foreign representative of MtGox Co. Ltd. with respect to the Japan Bankruptcy Proceedings: MtGox Co., Ltd. Office of Bankruptcy Trustee Kojimachi 3 chome building #202 Kojimachi 3-4-1 Chiyoda-ku, Tokyo Tel: +81-3-4588-3922 Attn: Nobuaki Kobayashi The Ontario Superior Court of Justice (Commercial List) on Oct. 3, 2014, ordered, pursuant to Section 272 of the Bankruptcy and Insolvency Act, that the bankruptcy proceedings commenced with respect to MtGox Co., Ltd. -- aka Mt. Gox KK and dba MtGox -- be recognized as a "foreign main proceeding." The Canadian legal counsel to the bankruptcy trustee and foreign representative of MtGox Co., Ltd, are Jeffrey Carhart and Margaret Sims, at Miller Thomson LLP. UNIVERSAL ENTERTAINMENT: Fitch Cuts LT IDR & USD Sr. Notes to CCC+ ------------------------------------------------------------------ Fitch Ratings has downgraded Universal Entertainment Corporation's (UEC) Long-Term Issuer Default Rating (IDR) to 'CCC+' from 'B' and the outstanding US dollar senior secured notes to 'CCC+' from 'B' with a Recovery Rating of 'RR4'. The downgrade reflects Fitch's view that unless the company's free cash flow (FCF) improves significantly in 2H21 or additional funding is raised, UEC may have insufficient liquidity to meet the repayment of USD118 million (about JPY14 billion) senior secured notes (SSN) due in December 2021. UEC believes it has several options to shore up liquidity, such as a potential listing of its Philippine-based casino business or a refinancing. Considerable uncertainty exists over these options because UEC is vulnerable to pandemic-related disruptions, in Fitch's view. Fitch also believes that UEC's business profile is no longer commensurate with the 'B' category in view of its increased earnings and cash flow volatility, which has been amplified by the pandemic in both the casino business and domestic operations. Fitch believes there is a risk of prolonged free cash flow (FCF) weakness amid ongoing pandemic uncertainty and the risk of further deterioration in both the casino and the amusement equipment business. UEC is highly exposed to the pandemic as operator of the Okada Manila, the largest integrated casino resort (IR) in Manila's Entertainment City, and in its Japanese amusement equipment business, which produces and sells pachinko and pachislot machines in Japan. Key risks to the IR segment's recovery are travel restrictions, outbreaks and further lockdowns. This could be exacerbated by volatility in the amusement equipment segment following regulatory changes in May 2020 and delays in new titles due to Covid-19. Failure to achieve a turnaround in operations could lead to further cash burn and deteriorating liquidity, and inhibit UEC in securing external funding, leading to further stress on business and credit profiles. As such, Fitch is monitoring UEC's liquidity closely before the USD118 million SSN mature in December. KEY RATING DRIVERS Liquidity, Maturity Pressure: UEC's cash flow and liquidity profiles are no longer commensurate with a 'B' rating and could deteriorate further on weakness in operating performance. UEC's readily available cash, excluding JPY7 billion for operational purposes, declined by almost JPY7 billion to about JPY24 billion in 1Q21. The maturity of USD118 million SSN due in December 2021 poses a challenge, given material uncertainty over the timing and extent of a recovery in UEC's FCF generation and lack of visibility over alternative funding venues. UEC believes it has several options to shore up liquidity, including a listing of its IR business in the US or a refinancing of the 2021 notes. However, UEC has yet to announce a concrete plan to mitigate liquidity and maturity pressure. A further deterioration in operating performance and cash flow could negatively affect UEC's ability to meet the December 2021 maturity. Uncertainty over Casino Recovery: Fitch believes uncertainty over the recovery and expansion of the Okada Manila remains significant in light of the severity of the outbreak. Economic uncertainty and a lack of consumer confidence could also lead to a prolonged earnings decline. Fitch expects the IR's performance to continue to be weak at least through 2021. The IR business expanded rapidly prior to the pandemic and accounted for more than half of UEC's consolidated revenue and EBITDA in 2019. The IR was hit hard in 2020 by the lockdown of central Manila and restrictions after the reopening, with revenue and EBITDA dropping by 61% and 54% yoy, respectively. UEC has reduced break even at EBITDA level significantly on aggressive fixed cost cuts, which enhances financial flexibility. However, this may not be sufficient to offset disruptions from the pandemic. Revised IR Assumptions: Fitch's cautious outlook for the IR segment reflects Fitch's updated expectations for the APAC gaming sector in 2021-2022. Fitch now assumes a drop in IR revenue of around 50% in 2021 compared with pre-pandemic levels, broadly in line with Fitch's assumptions for comparable global casino markets. Volatile EBITDA and FCF: Fitch expects EBITDA and FCF at UEC's casino operations to remain volatile and weak through 2021, given restrictions on the capacity of the IR to currently 30% amid the pandemic and Fitch's expectation of a very modest recovery in 2H21. Fitch also thinks a recovery to pre-pandemic revenue and EBITDA for the Philippine gaming market might only materialise in 2023. This could lead to increased competition and revenue cannibalisation among the leading operators. Delay Risk in Domestic Recovery: UEC's amusement equipment business has been in a structural decline with volatile earnings. Strong performance in the segment offset the IR closure in 1H20 and helped UEC maintain positive FCF on a consolidated basis. However, in May 2020, the deadline for pachinko halls to replace outdated 5.5 machines with 6.0 machines compliant with new regulations was extended by a year to January 2022, which could delay the replacement cycle. There was a sharp deterioration in 1Q21 in the segment, with revenue plunging by almost 80% yoy and EBIT swinging to a loss. Fitch expects further volatility ahead as the risk to earnings and cash flow in the segment is exacerbated by potential delays in the approval of new titles due to the pandemic. UEC has an ESG Relevance Score of '4' for Governance Structure due to a dispute with its founder and former chairman Kazuo Okada, which presents risks to its reputation and operations. DERIVATION SUMMARY UEC operates the largest casino in Manila's Entertainment City, but on a standalone basis, the scale of the IR is modest compared with most peers, such as Crown Resorts Limited (BBB/RWN) and Las Vegas Sands Corp (BBB-/Negative). UEC's profitability is roughly in line with these two peers but Fitch thinks its casino business is more vulnerable because it is dependent on a single location, while Crown's resorts are spread across Australia and Sands has multiple attractive locations. Crown and Sands also operate in more stable regulatory regimes than UEC. The Japanese company's execution and operational risks are also notably higher than that of Crown and other peers, as UEC has not yet established its position in the junket and high-roller segments. Heightened volatility in the domestic amusement equipment segment in the wake of regulatory changes adds to the uncertainty amid the lack of visibility over the timing and extent of a recovery. This offsets UEC's moderate leverage in a normalised environment and robust coverage metrics to a large extent. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- Revenue to increase by about 10% in 2021, driven by modest recovery in IR and amusement equipment segments; -- EBITDA margin in the low teens in 2021 (2020: 22.8%) improving to mid-teens in 2022; -- Annual capex between JPY10 billion-12 billion; -- No dividends or share buybacks in 2021-2023. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- All 2021 maturities addressed; -- Sustained neutral FCF and/or significant new external funding. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Failure to address 2021 maturities; -- Sustained cash burn; -- Deteriorating 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 Tight Liquidity, Maturity Pressure: Fitch believes declining liquidity as a result of ongoing weakness in operating performance is a key risk to UEC's credit profile. UEC reported a cash position of about JPY31 billion at the end-1Q21 (FYE20: JPY37 billion), of which about JPY7 billion is required as minimum cash for working capital and other operational purposes. Short-term debt amounted to JPY27 billion including USD 118 million (about JPY14 billion) of SSN due December 2021. UEC should be able to roll over short-term loans based on its solid banking relationships in the Philippines, but has yet to address the notes' maturity. Fitch sees a risk that liquidity could deteriorate if the turnaround in the amusement equipment and IR segments that UEC expects in 2H21 is delayed. As a result, Fitch sees UEC no longer positioned at 'B'. ESG CONSIDERATIONS UEC has an ESG Relevance Score of '4' for Governance Structure due to a dispute with its founder and former chairman. This presents risks to the company's reputation and operations, which has a negative impact on the credit profile, and is relevant to the rating in conjunction with other factors. 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. =============== M A L A Y S I A =============== SERBA DINAMIK: S&P Lowers ICR to 'B-' on Reduced Funding Access --------------------------------------------------------------- On June 1, 2021, S&P Global Ratings lowered to 'B-' from 'B+' the long-term issuer credit rating on Serba Dinamik Holdings Bhd. and the long-term issue ratings on the company's guaranteed sukuks. S&P then placed the ratings on CreditWatch with negative implications. The CreditWatch reflects the risk of a downgrade by one notch or more if Serba Dinamik cannot refinance its short-term debt or advance a credible refinancing plan for its sukuk in a timely manner. Serba Dinamik faces heightened refinancing risk of its U.S. dollar-denominated MYR900 million sukuk due May 2022 because of weakened market access due to a pending special independent review. Questions raised during KPMG PLT's fiscal 2020 statutory audit of Serba Dinamik's financial condition has prompted the company to appoint an independent third party to conduct this review. S&P said, "We believe Serba Dinamik may face difficulties accessing international and domestic capital markets, at least until the review's resolution. This will consequently complicate Serba Dinamik's ability to fund its operations and to refinance its upcoming debt maturities before May 2022. We estimate the company has MYR1.7 billion in debt maturities prior to May 2022: MYR600 million comprises short-term facilities reported at end-2020, MYR900 million represents the sukuk maturing in May 2022, and the remaining MYR200 million is long-term debt for amortization. This deviates from our previous expectation that the company would proactively fund its upcoming working capital requirement while maintaining sufficient liquidity. In our opinion, efforts to restore capital providers' confidence in Serba Dinamik's operations are likely to take months, even if the company completes the independent review." With less than 12 months from the May 2022 maturity of its sukuk, the limited time frame to both refinance and complete the independent review creates significant uncertainty. S&P said, "Our 'B-' ratings consider that Serba Dinamik may have sufficient cash for operations until May 2022 should the company adopt cash-preservation measures.According to the company's latest published figures, it had an unaudited cash balance of MYR836 million as of Dec. 31, 2020, and short-term borrowings of MYR807 million. We estimate that about MYR600 million of the short-term borrowings are short-term working capital facilities. Incorporating in our estimates the MYR508 million from the private placement of new shares in February 2021 and MYR100 million of commercial paper issued on May 25, 2021, the company should have a cash balance of about MYR1 billion as of end-May 2021. Furthermore, we believe cost-cutting strategies like reducing capital expenditure and stopping dividends, teamed with rolling over short-term facilities in the near term, will provide sufficient funds for ongoing operations until the company reaches its maturity wall in May 2022." The CreditWatch reflects the heightened risk of a downgrade by one notch or more if Serba Dinamik experiences delays in refinancing its short-term debt, or if it does not advance a credible refinancing plan for its 2022 sukuk. S&P could also lower the ratings to 'SD' (selective default) if the company undertakes capital market transactions that it considers distressed, such as repurchases below par of outstanding securities in the secondary market. Serba Dinamik may be able to sustain its credit quality in line with S&P's 'B-' ratings if it demonstrates improved access to funding and reduces refinancing risk. S&P aims to resolve the CreditWatch within the next 90 days. ===================== N E W Z E A L A N D ===================== MTF PANTERA 2021: Fitch Assigns B+(EXP) Rating on Class F Notes --------------------------------------------------------------- Fitch Ratings has assigned expected ratings to MTF Pantera Trust 2021's pass-through floating-rate notes. The issuance consists of notes backed by a pool of first-ranking New Zealand automotive loan receivables originated by Motor Trade Finance Limited (MTF). The notes will be issued by Trustees Executors Limited as trustee for MTF Pantera Trust 2021 (the issuer). DEBT RATING ---- ------ MTF Pantera Trust 2021 Class A LT AAA(EXP)sf Expected Rating Class B LT AA(EXP)sf Expected Rating Class C LT A(EXP)sf Expected Rating Class D LT BBB+(EXP)sf Expected Rating Class E LT BB+(EXP)sf Expected Rating Class F LT B+(EXP)sf Expected Rating Seller LT NR(EXP)sf Expected Rating KEY RATING DRIVERS Stress Commensurate with Ratings: Fitch derived borrower risk-tier-specific default base-case expectations using historical loss data since 2007. Distinct gross default base cases and multiples were set for high, medium and low risk-graded borrowers. The gross default base-case is 2.9% with a recovery base-case of 45% on a weighted-average (WA) portfolio level. Default expectations are based on an asset pool that Fitch stressed to portfolio parameters. These are applicable during the transaction's initial two-year revolving period. Fitch expects loan performance to deteriorate in the near-term due to the impact of the coronavirus pandemic, but to continue to support the Stable Outlook on the rated notes. Fitch forecasts New Zealand's GDP growth to recover to 4.5% in 2021 and 3.6% in 2022; while unemployment is expected to be at 4.8% and 4.4%, respectively. This is supported by a low official cash rate of 0.25%. Credit Enhancement Supports Ratings: Credit enhancement is provided by note subordination and strong excess spread. Structural Risk Addressed: Fitch evaluated structural risk by reviewing transaction documentation and structural features. A liquidity reserve - sized at 1% of the outstanding note balance - and an excess-spread reserve that traps excess income during deteriorating arrears performance support the rated notes. Low Operational and Servicing Risk: All assets are originated by MTF, a large motor-vehicle financier established in New Zealand in 1970. Fitch undertook an operational review and found that the operations of the originator and servicer were consistent with market standards for auto and equipment lenders in New Zealand. The pandemic has not disrupted collection or servicing activity, as staff are able to work remotely and have access to the office, if needed. No Residual Value Risk: There is no residual value exposure in this transaction. However, there is a small exposure to balloons. Rated Above Sovereign: Structured finance notes can be rated up to six notches above New Zealand's Long-Term Local-Currency Issuer Default Rating of 'AA+', supporting the 'AAAsf' rating on the class A notes. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Macroeconomic conditions, loan performance and credit losses that are better than Fitch's expectations or sufficient build up of credit enhancement that fully compensates for the credit losses and cash flow stresses commensurate with higher rating scenarios, all else being equal. -- The class A notes are rated at 'AAAsf', which is the highest level on Fitch's scale. The ratings cannot be upgraded. Upgrade Sensitivity: -- The class A notes are rated at 'AAAsf so an upgrade sensitivity scenario is not relevant. -- Class B / C / D / E / F -- Current rating: AAsf / Asf / BBB+sf / BB+sf / B+ sf -- Decrease defaults by 10%; increase recoveries by 10%: AA+sf / AA-sf / A-sf / BBB-sf / BB-sf Factors that could, individually or collectively, lead to negative rating action/downgrade: -- A longer pandemic than Fitch expects that leads to deterioration in macroeconomic fundamentals and consumers' financial position in New Zealand beyond Fitch's expectations. Credit enhancement cannot compensate for the higher credit losses and cash flow stresses, all else being equal. Downgrade Sensitivity Rating Sensitivity to Increased Default Rates -- Notes: A / B / C / D / E / F -- Current rating: AAAsf / AAsf / Asf / BBB+sf / BB+sf / B+sf -- Defaults increase by 10%: AA+sf / AA-sf / Asf / BBB+sf / BB+sf / Bsf -- Defaults increase by 25%: AAsf / A+sf / A-sf / BBBsf / BBsf / Bsf -- Defaults increase by 50%: AA-sf / Asf / BBB+sf / BBB-sf / BB sf / less than Bsf Rating Sensitivity to Reduced Recovery Rates -- Notes: A / B / C / D / E / F -- Current rating: AAAsf / AAsf / Asf / BBB+sf / BB+sf / B+sf -- Recoveries decrease by 10%: AA+sf / AAsf / Asf / BBB+sf / BB+sf / B+sf -- Recoveries decrease by 25%: AA+sf / AA-sf / Asf / BBBsf / BBsf / Bsf -- Recoveries decrease by 50%: AA+sf / A+sf / A-sf / BBB-sf / B+sf / less than Bsf Rating Sensitivity to Increased Defaults and Reduced Recoveries -- Notes: A / B / C / D / E / F -- Current rating: AAAsf / AAsf / Asf / BBB+sf / BB+sf / B+sf -- Defaults increase by 10%/recoveries decrease by 10%: AA+sf / AA-sf / A-sf / BBBsf / BBsf / Bsf -- Defaults increase by 25%/recoveries decrease by 25%: AA-sf / Asf / BBB+sf / BBB-sf / B+sf / less than Bsf -- Defaults increase by 50%/recoveries decrease by 50%: Asf / BBB+sf / BBB-sf / BBsf / less than Bsf / less than Bsf Coronavirus Downside Scenario Sensitivity Fitch has added a coronavirus downside sensitivity analysis that contemplates a more severe and prolonged period of stress, with recovery to pre-crisis GDP levels delayed until around the middle of the decade. Under this more severe scenario, Fitch tested a 2.00x increase in defaults combined with a 1.15x increase at the 'AAAsf' level, which is scaled down with the lower rating stresses, and a 0.77x decrease in recoveries combined with a 0.90x decrease at the 'AAAsf' level. This results in a higher WA default base-case of 5.7% and a lower recovery base-case of 34.8%. This compares with WA default and recovery base-cases of 2.9% and 45.0%, respectively, in Fitch's baseline analysis. The WA 'AAAsf' default multiple is reduced to 3.5x, compared with 5.7x, to reflect the higher degree of stress already included in the base case, while the 'AAAsf' recovery haircut is also reduced to 41.9%, from 50.0%. -- Notes: A / B / C / D / E / F -- Current rating: AAAsf / AAsf / Asf / BBB+sf / BB+sf / B+sf -- Downside scenario: AA-sf / A-sf / BBB-sf / BBsf / less than Bsf / less than Bsf 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 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action Fitch sought to receive a third-party assessment conducted on the asset portfolio information, but none was made available. Fitch reviewed a small targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Overall, and together with any assumptions referred to above, 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. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. ================= S I N G A P O R E ================= HUITONGRONG INTERNATIONAL: Court Enters Wind-Up Order ----------------------------------------------------- The High Court of Singapore entered an order on May 21, 2021, to wind up the operations of Huitongrong International (Singapore) Pte. Ltd. Zenrock Commodities Trading Pte. Ltd. filed the petition against the company. The company's liquidators are: Neo Ban Chuan c/o BC Neo Business Advisory Pte Ltd 151 Chin Swee Road #14-04 Manhattan House Singapore 169876 NORTHEASTERN VENUE: Aculus Advisory Appointed as Liquidators ------------------------------------------------------------ Lim Soh Yen and Lynn Ong Bee Ling of Aculus Advisory on May 25, 2021, were appointed as liquidators of Northeastern Venue Pte Ltd. The liquidators may be reached at: Lim Soh Yen Lynn Ong Bee Ling Aculus Advisory 133 New Bridge Road #24-01/02 Chinatown Point Singapore 059413 E-mail: sohyen.lim@acutus-ca.com lynn.ong@acutus-ca.com TML HOLDINGS: S&P Assigns 'B' Rating to New USD Sr. Unsecured Notes ------------------------------------------------------------------- S&P Global Ratings assigned its 'B' long-term issue rating to the proposed benchmark-size U.S. dollar-denominated senior unsecured notes issued by TML Holdings Pte. Ltd. (B/Stable/--). The proceeds from the issuance will be used primarily to proactively refinance a GBP225 million loan due in July 2022, with the balance retained to improve liquidity. TML Holdings is a 100% subsidiary of Tata Motors Ltd. (B/Stable/--). The company acts as the holding company for Tata Motors' international operations, including 100% ownership of Jaguar Land Rover Automotive PLC (JLR). S&P said, "We consider TML Holdings to be a core subsidiary of Tata Motors and we equalize the issuer credit rating on TML Holdings with that on Tata Motors. We rate the notes the same as the issuer credit rating on TML Holdings. "In our opinion, Tata Motors' earnings and leverage will improve steadily over the next 12-18 months, driven by a material improvement in the company's Indian operations and JLR's supportive operational performance. While renewed waves of COVID-19 infections have raised operational risks, especially in India, we expect resultant disruptions to be temporary and mainly in the first quarter of the fiscal year ending March 2022. Earnings will likely recover in the rest of fiscal 2022 as restrictions ease, similar to what we saw after the first COVID wave in fiscal 2021. The shortage in semiconductor chips has increased risks around production volumes. However, we believe these risks are adequately captured at the current rating level." S&P believes TML Holdings has committed long-term support from Tata Motors. As an integral part of the group, S&P expects TML Holdings to receive extraordinary support from Tata Motors, if required. Tata Motors made capital injections into TML Holdings via preference shares in the initial years after the acquisition of JLR. Also, the proposed notes benefit from a letter of comfort from Tata Motors, under which Tata Motors undertakes to make reasonable efforts to make payment in the event TML Holdings is unable to. While the letter of comfort is not akin to a guarantee and does not explicitly contribute to the issue rating, such intent is a signal of Tata Motors' strong support for its subsidiary. TML Holdings, through its ownership of JLR, represents a significant share of Tata Motors' earnings and assets. Historically, JLR has accounted for 80%-90% of Tata Motors' EBITDA. S&P also views the two companies to be highly integrated with shared management, name, branding, and treasury operations. The stable outlook on TML Holdings reflects that on Tata Motors. S&P could downgrade Tata Motors and hence TML Holdings if Tata Motors' earnings do not recover as it expects, resulting in leverage remaining elevated. This could be indicated by a failure to reduce its debt-to-EBITDA ratio adjusted for product development expenses to about 5x by fiscal 2023. S&P could upgrade Tata Motors and TML Holdings if Tata Motors' operational performance surpasses its expectations such that its ratio of funds from operations to debt exceeds 15% on a sustained basis. ================= S R I L A N K A ================= SRI LANKA: S&P Affirms CCC+ Sovereign Credit Rating, Outlook Stable ------------------------------------------------------------------- S&P Global Ratings affirmed its long-term foreign and local currency sovereign credit ratings on Sri Lanka at 'CCC+'. S&P also affirmed its short-term foreign and local currency credit ratings at 'C'. The transfer and convertibility assessment is 'CCC+'. The outlook remains stable. Outlook The stable outlook reflects that, at this rating category, risks to Sri Lanka are relatively balanced over the next 12 months. The threat of external deterioration is partially offset by the country's access to official funding and accommodative macroeconomic policies, which are likely to boost domestic demand recovery. Downside scenario S&P could lower its ratings if foreign reserves decline by substantially more than we forecast, including if the government is unable to further boost reserves by issuing Sri Lanka Development Bonds (SLDBs). This would hurt its debt-servicing capacity. Upside scenario S&P would raise the rating if external buffers are significantly boosted, or if economic recovery is much stronger than expected for the next two years. This could lower the risks associated with the government's debt-servicing capacity. Rationale S&P's ratings on Sri Lanka reflect our assessment that risks to debt-servicing capacity remain elevated, and the government's access to external financing is increasingly dependent on official support and favorable economic and financial conditions. The country's relatively modest income levels, weak external profile, sizable fiscal deficits, heavy government indebtedness, and hefty interest payment burdens significantly constrain our ratings. While the economy is likely to expand this year, uncertainty over the COVID-19 pandemic fallout in Sri Lanka and the surrounding region poses significant headwinds to economic activity and recovery in sectors such as tourism. While expansionary macroeconomic policies will provide relief to the economy, they risk further weakening the government's fiscal position and worsening the risks associated with the government's already high debt burden. Institutional and economic profile: Pandemic uncertainty still hinders growth -- Following a sharp contraction in 2020, economic activity is expected to recover this year, although more slowly than previously forecast. -- The new deadly wave of infections sweeping across the surrounding region will likely keep borders closed for the rest of the year, while vaccine rollout has been hampered by supply issues. -- S&P expects policies to remain expansionary, as the government maintains a strong parliamentary majority. Sri Lanka's economy recorded its most severe contraction in 2020 as the government shut down international flights and implemented a nationwide lockdown in response to the COVID-19 outbreak. This resulted in real GDP plunging 16.4% year-on-year (yoy) in second quarter (Q2) 2020. With the lifting of the lockdown and a revival in external demand for goods, Sri Lanka's economy stabilized in the second half of the year and recorded growth of 1.3% yoy. Although the country experienced a second wave of coronavirus infections in Q4 2020, it was able to finally open its border to travelers in the first few months of this year. However, a third wave of infections that started in late April, which has proven to be the largest so far, has halted international travel again and we do not expect any meaningful uptick in tourism for the rest of the year. Nevertheless, economic activity is likely to recover this year from the low base in 2020. S&P does not expect the government to reimpose a nationwide lockdown that would severely disrupt economic activity. Instead, it is likely to continue with localized restrictions and ad-hoc curfews to control the spread of the coronavirus. External demand is also likely to support the economy, especially if end-demand markets sustain their economic recovery. However, downside risks to growth are still substantial, particularly given the unpredictable nature of the pandemic and the emergence of new infectious variants. A further serious escalation in the sanitary crisis could overwhelm Sri Lanka's health care system, which is already operating at the brink. This could also increase the risk of strict movement restrictions. Meanwhile, due to supply disruptions, the vaccination campaign is likely to proceed more slowly than the government initially expected. S&P forecasts the economy will expand by 3.7% in real terms in 2021, following the 3.6% contraction in 2020. With better vaccination progress in 2022, we expect real GDP growth to accelerate to 4.0% and average 4.2% from 2022-2024. This will bring per capita income to around US$3,900 in 2021, translating into real GDP per capita growth of 2.0% on a 10-year weighted-average basis. Although this growth is in line with peers at a similar income level, it is substantially below Sri Lanka's potential. S&P said, "Sri Lanka's institutional setting has been a persistent credit weakness over the past few years. Frequent political infighting and occasional unpredictable developments have hindered policy predictability and weighed on business confidence, in our view. While the current administration's clear victories in both the presidential and parliamentary elections are likely to ease such uncertainty over policy direction, there has been further consolidation of power in the executive. This could potentially undermine social stability, particularly if divisions along religious or ethnic lines persist, in our view." S&P Global Ratings believes evolution of the coronavirus pandemic remains highly uncertain. Reports of vaccines that are highly effective gaining approval in more countries are promising, but this is merely the first step toward a return to social and economic normality; equally critical is the widespread availability of effective immunization, which could come by the middle of next year. S&P said, "We use this assumption in assessing the economic and credit implications associated with the pandemic. As the situation evolves, we will update our assumptions and estimates accordingly." Flexibility and performance profile: Fiscal position will to continue deteriorate and external financing risks remain heightened -- The external profile remains weak, given that the high share of dollar-denominated debt exposes the government to shifts in risk sentiments. -- Sri Lanka's fiscal deficit is likely to remain elevated due to subpar growth and revenue measures announced in the budget. -- This will likely worsen the government's heavy indebtedness and add to the repayment burden. The government's external financing conditions have become more challenging, and uncertainty over access to official creditors remains high, in our view. The government recently received US$500 million in official loans for budgetary support. Sri Lanka is also expected to benefit from the proposal for new Special Drawing Rights allocation by the International Monetary Fund. This is likely to increase Sri Lanka's foreign exchange reserves by around US$780 million. The government is also establishing bilateral credit lines with other central banks. A stronger network of bilateral swap lines will help to augment reserves to some extent. However, S&P sees increasing risks that funding from multilateral or bilateral partners will not be sufficient to cover all external financing needs over the next 12 months. While financing conditions on the international capital markets remain difficult, the government has been able to issue SLDBs to domestic creditors, particularly domestic banks and eligible corporates. Success in rolling over SLDBs will become increasingly crucial to the government's debt-servicing capacity. In turn, this will heavily depend on domestic creditors' ability to access external financing under favorable terms. Persistent deficits in Sri Lanka's fiscal and external positions remain rating constraints. The government's heavy debt burden limits its ability to accumulate policy buffers, which are crucial in times of stress. The COVID-19 pandemic has further devastated government finances by dampening domestic economic activity and lowering excise duty earnings. In the latest budget, the government committed to keeping the wide-ranging tax cuts, including a lower value-added tax (VAT) rate, increasing the VAT turnover threshold, and removing the 2% Nation Building Tax, for five years. Instead of one-off measures to counter the economic impact of the pandemic, these expansionary measures are likely to increase the deficit for an extended period, in S&P's view. In the absence of extremely favorable economic and financial conditions, these measures are expected to constrain revenue growth and could be only partially offset by new revenue measures, such as the Special Goods and Services Tax. The government is planning to significantly ramp up infrastructure spending over the next few years. While recurrent expenditure has been relatively contained, room for further cuts is limited due to the high interest burden. Health care-related spending may also increase fiscal pressure, particularly if the hospital system comes under further strain. S&P expects the fiscal deficit to remain elevated at 10.2% of GDP in 2021 and narrow gradually to 8.4% in 2024. If revenue growth disappoints, S&P believes that the government has some flexibility to cut capital expenditure to contain the fiscal deficit. High fiscal deficits over an extended period will worsen the government's extremely high debt stock. S&P expects the increase in net general government debt to average 10.3% over 2021-2024. Net general government debt has exceeded 100% of GDP in 2020 and will continue to increase over the next five years, in its view. Sri Lanka's debt profile is also vulnerable due to the high share of the total debt being denominated in foreign currency, although this has been reducing over the past year. The government has been increasing the share of domestic financing to fund the fiscal deficit. At the same time, domestic interest rates have been kept extremely low through massive liquidity injections by the central bank. While this has reduced the effective interest rate on the government's domestic debt, an increase in domestic liquidity will also pressure the exchange rate. The government's interest payment as a percentage of revenues has reached 68.8%in 2020--the highest ratio among the sovereigns we rate. S&P assesses the government's contingent liabilities from state-owned enterprises and its relatively small financial system as limited. However, risks continue to rise due to sustained losses at Ceylon Petroleum Corp., Ceylon Electricity Board, and Sri Lankan Airlines. Also, Sri Lanka's financial sector has limited capacity to lend more to the government without possibly crowding out private-sector borrowing, owing to its large exposure to the government sector of more than 20%. The country's external position remains vulnerable. While the current account deficit has narrowed substantially to 1.3% of GDP in 2020 from 2.2% in 2019, this was achieved through wide-ranging restrictions on non-essential imports. S&P estimates the current account deficit will rise marginally to 1.9% of GDP in 2021. While most of the import restrictions will likely remain in place, higher fuel prices this year will likely result in a larger import bill, offsetting the earnings from robust workers' remittances. Latest high frequency data shows a strong recovery in imports alongside sustained improvements in exports. Sri Lanka's external liquidity, as measured by gross external financing needs as a percentage of current account receipts plus usable reserves, is projected to average 122% over 2021-2024. S&P also forecasts that Sri Lanka's external debt net of official reserves and financial sector external assets will remain elevated at around 167% in 2021. Sri Lanka's monetary settings remain a credit weakness, although it has seen some structural improvements. The Central Bank of Sri Lanka has been preparing an updated Monetary Law Act in recent years. The passage of this act, which enshrines the central bank's autonomy and capacity, will be crucial to improving the quality and effectiveness of monetary policy, in our view. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Ratings Score Snapshot above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. Ratings List RATINGS AFFIRMED Sri Lanka Sovereign Credit Rating CCC+/Stable/C Transfer & Convertibility Assessment Local Currency CCC+ Sri Lanka Senior Unsecured CCC+ SriLankan Airlines Ltd. Senior Unsecured CCC+ =============== T H A I L A N D =============== THAI AIRWAYS: Court Hearing on Restructuring Moved to June 15 ------------------------------------------------------------- Bangkok Post reports that Thai Airways International Plc said that the Central Bankruptcy Court will decide on its restructuring proposal on June 15, after a hearing on May 31 was postponed to allow for the assessment of complaints filed by creditors against the plan. "Creditors filed two complaints against the restructuring plan, which the court accepted," the airline said in a statement, Bangkok Post relays. "The Central Bankruptcy Court will suspend the review to allow planners and creditors to clarify the issues." Earlier this month, THAI creditors' approved a restructuring plan before it was sent to the bankruptcy court for review. Bangkok Post says the plan seeks to restructure THB245 billion of debt through payment extensions, interest waivers, and debt-to-equity conversions. The airline was in difficulty well before the coronavirus pandemic grounded flights across the globe, booking losses nearly every year after 2012, the report notes. About Thai Airways Thai Airways International PCL (BAK:THAI) -- http://www.thaiairways.co.th/-- is the national carrier of Thailand. The company provides air transportation, freight and mail services on domestic and international routes including Asia, Europe, North America, Africa and South West Pacific. The Company is a state enterprise which is controlled by the government and partly owned by the public. As reported in Troubled Company Reporter-Asia Pacific on May 21, 2020, Thailand's cabinet approved a plan to restructure troubled Thai Airways International Pcl's finances through a bankruptcy court, the Southeast Asian country's prime minister said on May 19, 2020. The plan for a court-led restructuring of the national carrier replaces a previous proposal of a government-backed rescue package that was heavily criticised in the country. Thai Airways on May 27, 2020 said it appointed board members as rehabilitation planners in a bankruptcy court submission. On Sept. 14, 2020, Thailand's Central Bankruptcy Court approved Thai Airways debt restructuring. Thai Airways posted losses every year after 2012, except in 2016. In 2019, it reported losses of THB12.04 billion. The company's shareholders' equity turned negative at minus THB18.1 billion ($580 million) as of June. While its total liabilities ballooned to THB332.1 billion, a 36.7% increase from the end of 2019, its cash and cash equivalents fell by 35.5% to THB13.9 billion, according to the Nikkei Asia. ============= V I E T N A M ============= HO CHI MINH CITY DEVELOPMENT: Moody's Affirms B1 LT Deposit Rating ------------------------------------------------------------------ Moody's Investors Service has affirmed the B1 long-term local and foreign currency deposit and issuer ratings of Ho Chi Minh City Development JSC Bank (HDBank), Lien Viet Post Joint Stock Commercial Bank (Lien Viet) and Southeast Asia Commercial Joint Stock Bank (SeABank), and those of JSC Bank for Investment & Development of Vietnam (BIDV) at Ba3. Their stable credit profiles support the affirmation of their respective Baseline Credit Assessments (BCA) and Adjusted BCAs at b2. At the same time, Moody's changed the outlook on the long-term deposit and issuer ratings of HDBank and SeABank to positive from stable. The outlook on the long-term deposit and issuer ratings of BIDV remains positive while that of Lien Viet remains stable. RATINGS RATIONALE AFFIRMATION OF HDBANK'S, SEABANK'S AND BIDV'S RATINGS WITH POSITIVE OUTLOOKS The positive outlook on the ratings of the three Vietnamese banks reflects Moody's view that improvements in asset quality over recent years, which could translate into lower credit costs and higher profitability, could raise the banks' BCAs over the next 12 -- 18 months. For BIDV, the positive outlook also incorporates the likelihood of a higher level of government support uplift from the Government of Vietnam (Ba3 positive) in the event of a rating upgrade of the sovereign. Asset quality improved steadily across all three banks in recent years. The problem loans ratio, which include nonperforming loans and gross bonds issued by the Vietnam Asset Management Company (VAMC), declined to an average of 1.9% at the three banks as of the end of 2020 from 2.2% as of the end of 2019 and 3.8% as of the end of 2018. The three banks have also been building up their problem loans coverage, which averaged around 67% as of the end of 2020, higher than the 57% as of the end of 2018. Moody's expects asset quality to remain largely stable at the three banks amid the supportive economic environment in Vietnam. Moody's expects profitability at the three banks to improve over the next 12 -- 18 months because of higher yields from their loans to individuals and small and medium enterprises, and for BIDV and HDBank, improvements in asset quality as the banks fully resolve their stock of gross VAMC bonds in 2020. Capital, in turn, will remain stable across all three banks because internal capital generation will support asset growth. The affirmation of the ratings on the three banks considers their still modest profitability and capital compared with higher rated peers. Moody's also regards the rapid loan growth at HDBank and the concentration to large borrowers at BIDV as risk factors to asset quality. Funding and liquidity continued to be BIDV's key credit strengths given its status as one of the largest publicly-owned banks in Vietnam, its strong deposit franchise and branch network in the country, as well as low reliance on market funds. Conversely, HDBank and SeABank have greater reliance on market funds because of their smaller deposit franchise in Vietnam, but Moody's sees the related risks to be partially mitigated by their ample liquid assets. AFFIRMATION OF LIEN VIET'S RATINGS WITH STABLE OUTLOOK The affirmation of Lien Viet's ratings with a stable outlook reflects Moody's expectation that the bank's rapid loan growth will increase its risk of credit losses due to a higher level of unseasoned loans. This is despite Lien Viet's steadily improving asset quality over recent years, similar to the other three banks. As a result, the bank's standalone credit strength will remain broadly stable over the next 12 -- 18 months. Lien Viet's capital and profitability are modest, which will provide limited buffers against risks. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Assuming all other factors remain constant, Moody's could upgrade BIDV's long-term ratings if the Vietnamese government's sovereign rating is upgraded. The long-term ratings of HDBank, Lien Viet and SeABank could be upgraded if the Vietnamese government's sovereign rating and the banks' BCAs are upgraded. The BCAs of HDBank, Lien Viet and SeABank could be upgraded if the banks maintain their asset quality and improve their capital and profitability. Improvements in funding and liquidity will also be positive for the BCAs of all three banks. Moody's could downgrade the long-term ratings of all four banks if their credit fundamentals severely deteriorate, including a spike in nonperforming loans (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. LIST OF AFFECTED RATINGS Outlook Actions: Issuer: Ho Chi Minh City Development JSC Bank Outlook, Changed To Positive From Stable Issuer: JSC Bank for Invstmnt & Developmnt of Vietnam Outlook, Remains Positive Issuer: Lien Viet Post Joint Stock Commercial Bank Outlook, Remains Stable Issuer: Southeast Asia Commercial Joint Stock Bank Outlook, Changed To Positive From Stable Affirmations: Issuer: Ho Chi Minh City Development JSC Bank Adjusted Baseline Credit Assessment, Affirmed b2 Baseline Credit Assessment, Affirmed b2 Long-term Counterparty Risk Assessment, Affirmed B1(cr) Short-term Counterparty Risk Assessment, Affirmed NP(cr) Long-term Counterparty Risk Rating (Foreign and Local Currency), Affirmed B1 Short-term Counterparty Risk Rating (Foreign and Local Currency), Affirmed NP Short-term Issuer Rating (Foreign and Local Currency), Affirmed NP Long-term Issuer Rating (Foreign and Local Currency), Affirmed B1, outlook changed to positive from stable Short-term Deposit Rating (Foreign and Local Currency), Affirmed NP Long-term Deposit Rating (Foreign and Local Currency), Affirmed B1, outlook changed to positive from stable Issuer: JSC Bank for Invstmnt & Developmnt of Vietnam Adjusted Baseline Credit Assessment, Affirmed b2 Baseline Credit Assessment, Affirmed b2 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 Issuer: Lien Viet Post Joint Stock Commercial Bank Adjusted Baseline Credit Assessment, Affirmed b2 Baseline Credit Assessment, Affirmed b2 Long-term Counterparty Risk Assessment, Affirmed B1(cr) Short-term Counterparty Risk Assessment, Affirmed NP(cr) Long-term Counterparty Risk Rating (Foreign and Local Currency), Affirmed B1 Short-term Counterparty Risk Rating (Foreign and Local Currency), Affirmed NP Short-term Issuer Rating (Foreign and Local Currency), Affirmed NP Long-term Issuer Rating (Foreign and Local Currency), Affirmed B1, outlook stable Short-term Deposit Rating (Foreign and Local Currency), Affirmed NP Long-term Deposit Rating (Foreign and Local Currency), Affirmed B1, outlook stable Issuer: Southeast Asia Commercial Joint Stock Bank Adjusted Baseline Credit Assessment, Affirmed b2 Baseline Credit Assessment, Affirmed b2 Long-term Counterparty Risk Assessment, Affirmed B1(cr) Short-term Counterparty Risk Assessment, Affirmed NP(cr) Long-term Counterparty Risk Rating (Foreign and Local Currency), Affirmed B1 Short-term Counterparty Risk Rating (Foreign and Local Currency), Affirmed NP Short-term Issuer Rating (Foreign and Local Currency), Affirmed NP Long-term Issuer Rating (Foreign and Local Currency), Affirmed B1, outlook changed to positive from stable Short-term Deposit Rating (Foreign and Local Currency), Affirmed NP Long-term Deposit Rating (Foreign and Local Currency), Affirmed B1, outlook changed to positive from stable The principal methodology used in these ratings was Banks Methodology published in March 2021. JSC Bank for Investment & Development of Vietnam (BIDV), headquartered in Hanoi, reported total assets of VND1,516 trillion as of December 31, 2020. Ho Chi Minh City Development JSC Bank (HDB), headquartered in Ho Chi Minh City, reported total assets of VND319 trillion as of December 31, 2020. Lien Viet Post Joint Stock Commercial Bank (Lien Viet), headquartered in Hanoi, reported total assets of VND242 trillion as of December 31, 2020. Southeast Asia Commercial Joint Stock Bank (SeABank), headquartered in Hanoi, reported total assets of VND180 trillion as of December 31, 2020. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2021. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***