/raid1/www/Hosts/bankrupt/TCRAP_Public/211103.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, November 3, 2021, Vol. 24, No. 214
Headlines
A U S T R A L I A
ENVISION AV: Second Creditors' Meeting Set for Nov. 9
LATITUDE AUSTRALIA 2021-1: Moody's Gives (P)Ba2 Rating to E Notes
TRITON TRUST: Fitch Affirms B+ Rating on Class E Notes
VENTIA SERVICES: Moody's Puts Ba2 CFR Under Review for Upgrade
C H I N A
FANTASIA HOLDINGS: Fitch Affirms Then Withdraws 'RD' IDR
MODERN LAND: Says Default Triggers Earlier Repayment Deadlines
RONSHINE CHINA: Fitch Lowers LT Foreign Currency IDR to 'B'
SUNING.COM CO: Reports Second-Largest Quarterly Loss in 17 Years
YANGO GROUP: Moody's Lowers CFR to Caa2, Placed on Further Review
I N D I A
ADITYA AGRO: ICRA Keeps B+ Debt Ratings in Not Cooperating
CHANDAN TEXTILES: ICRA Keeps B Debt Ratings in Not Cooperating
CHEMTRADE OVERSEAS: ICRA Keeps B+ Debt Ratings in Not Cooperating
DARJEELING POWER: ICRA Keeps B+ Debt Ratings in Not Cooperating
H.M. INDUSTRIAL: ICRA Keeps D Debt Ratings in Not Cooperating
JAY METAL: ICRA Keeps B Debt Ratings in Not Cooperating Category
KHODAL COT-GIN: ICRA Keeps D Debt Ratings in Not Cooperating
KRISHNA RICE: ICRA Keeps B- Debt Rating in Not Cooperating
KRN ALLOYS: ICRA Keeps B- Debt Ratings in Not Cooperating
LAXMI GUAR: ICRA Keeps B Debt Ratings in Not Cooperating Category
M V AGRO: ICRA Keeps D Debt Ratings in Not Cooperating Category
MARUTI COTTON: ICRA Keeps D Debt Ratings in Not Cooperating
MILTON CYCLE: ICRA Keeps B+ Debt Rating in Not Cooperating
NARMADA DAL: ICRA Keeps B+ Debt Ratings in Not Cooperating
NEOTECH EDUCATION: ICRA Keeps D Debt Rating in Not Cooperating
NOOLI JEWELLERS: ICRA Keeps B+ Debt Rating in Not Cooperating
PADMASHRI DR: ICRA Keeps D Debt Ratings in Not Cooperating
PCL FOODS: ICRA Keeps B+ Debt Rating in Not Cooperating Category
POOJA JEWELLERS: ICRA Keeps D Debt Rating in Not Cooperating
RAM RAYON: ICRA Keeps D Debt Ratings in Not Cooperating Category
SAI LEELA: ICRA Withdraws B+ Rating on INR12cr Loans
SRG SPINNING: ICRA Keeps B+ Debt Rating in Not Cooperating
SUN FORGE: ICRA Withdraws B+ Rating on INR14cr Loans
SWASTIK ENTERPRISE: ICRA Keeps D Debt Ratings in Not Cooperating
TAPTI AGRO: ICRA Keeps B Debt Rating in Not Cooperating Category
UNIQUE STRUCTURES: ICRA Withdraws B+ Rating on INR24.25cr Loan
UNIVERSAL FREIGHT: ICRA Keeps B+ Debt Ratings in Not Cooperating
VIDYA EDUCATIONAL: ICRA Keeps D Debt Ratings in Not Cooperating
YASH PIGMENTS: ICRA Withdraws B+ Rating on INR30.0cr Loan
I N D O N E S I A
GARUDA INDONESIA: Needs $1 Billion to Stay Afloat, Cut Debts
LIPPO MALLS: Fitch Affirms 'B+' LT IDR, Outlook Negative
MEDCO ENERGI: Fitch Assigns B+ Rating to Proposed Senior Notes
MEDCO ENERGI: Moody's Affirms B1 CFR, Rates USD Sr. Unsec. Notes B1
MEDCO ENERGI: S&P Puts 'B+' LT Issue Rating on Sr. Unsec.Notes
PLAZA INDONESIA: Moody's Assigns First Time Ba2 Corp Family Rating
N E W Z E A L A N D
CRUSADERS BUILDING: Court to Hear Wind-Up Petition on Nov. 25
LIDDLE BUILDERS: Creditors' Proofs of Debt Due Nov. 30
MANAWATU TRADING: Creditors' Proofs of Debt Due Nov. 6
S I N G A P O R E
AESTHETICS HOLDINGS: Creditors' Proofs of Debt Due Nov. 29
DRX GROUP: Creditors' Proofs of Debt Due Nov. 29
FR MEDIA: Chee FM Appointed as Provisional Liquidator
GOLDIN FUND: Court to Hear Wind-Up Petition on Nov. 12
RIGVEDA MARITIME: Court Enters Wind-Up Order
T H A I L A N D
THAI AIRWAYS: To Sell 42 Jets, Cut Workforce to Reduce Costs
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A U S T R A L I A
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ENVISION AV: Second Creditors' Meeting Set for Nov. 9
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A second meeting of creditors in the proceedings of Envision AV
Services Pty Limited has been set for Nov. 9, 2021, at 10:00 a.m.
via Zoom facilities.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Nov. 8, 2021, at 4:00 p.m.
Geoffrey Trent Hancock of Hamilton Murphy Advisory was appointed as
administrator of Envision AV on Oct. 6, 2021.
LATITUDE AUSTRALIA 2021-1: Moody's Gives (P)Ba2 Rating to E Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned the following provisional
ratings to notes to be issued by Perpetual Corporate Trust Limited,
as trustee of Latitude Australia Personal Loans Series 2021-1
Trust.
Issuer: Latitude Australia Personal Loans Series 2021-1 Trust
AUD347.0 million Class A Notes, Assigned (P)Aaa (sf)
AUD51.00 million Class B Notes, Assigned (P)Aa2 (sf)
AUD25.00 million Class C Notes, Assigned (P)A2 (sf)
AUD18.00 million Class D Notes, Assigned (P)Baa2 (sf)
AUD30.50 million Class E Notes, Assigned (P)Ba2 (sf)
The AUD28.50 million Seller Notes are not rated by Moody's.
Latitude Australia Personal Loans Series 2021-1 Trust is a cash
securitisation of unsecured personal loans extended to obligors
located in Australia. All receivables were originated and are
serviced by Latitude Personal Finance Pty Limited (Latitude,
unrated).
Latitude provides sales finance, credit cards, personal loans,
Buy-Now-Pay-Later (BNPL) and consumer credit insurance in Australia
and New Zealand. Latitude originates its lending through direct and
third-party channels. Direct channels include online and call
centre based applications with third-party distribution through
partnership agreements and a network of brokers. The Latitude
Australia Personal Loans Series 2021-1 Trust transaction represents
Latitude's third term ABS transaction and its first term ABS for
2021.
RATINGS RATIONALE
The provisional ratings take into account, among other factors, the
evaluation of the underlying receivables and their expected
performance, the evaluation of the capital structure, the
availability of excess spread over the life of the transaction, the
liquidity facility in the amount of 1.50% of the balance of the
receivables not in arrears by more than 90 days, subject to a floor
of AUD1,200,000, the interest rate swap provided by Westpac Banking
Corporation (WBC, Aa3/P-1/Aa2(cr)/P-1(cr)) and the experience of
Latitude as servicer and the backup servicing arrangement with AMAL
Asset Management Limited.
Initially, Class A, Class B, Class C, Class D and Class E Notes
benefit from 30.6%, 20.4%, 15.4%, 11.8% and 5.7% of note
subordination, respectively. The notes will be repaid on a
sequential basis until the credit enhancement of the Class A Notes
is at least 55%, there are no unreimbursed charge-offs or principal
draws, first call option date has not occurred and as long as
cumulative net losses are less than 6.5%, where that payment date
is on or before 12 months after the closing date and 12%
thereafter. The structure will also follow a sequential repayment
profile if pro-rata conditions are not satisfied or if the first
call option date has occurred.
Moody's analysis also accounts for the risk of the transaction
being over or under-hedged. This risk arises because the notional
amount in the swap agreement is based on the repayment profile of
the rated notes, assuming a prepayment rate of 24% on the
underlying receivables. If prepayments deviate from this
assumption, the transaction is exposed to the risk of being over or
under-hedged. To account for this risk, Moody's ran a number of
faster and slower prepayment scenarios in combination with
associated upward and downward movements in bank bill swap rates.
MAIN MODEL ASSUMPTIONS
Moody's base case assumptions are a default rate of 9.7% (9.3%
after adjustment for seasoning, arrears and redraw), portfolio
credit enhancement (PCE) of 38.0% and a recovery rate of 15.0%.
Moody's assumed default rate and recovery rate are stressed
compared to the extrapolated mean default of 9.2% and actual
historical levels of recovery rate of 25.4%. In Moody's analysis,
Moody's have excluded Q1 2020 to Q2 2021 vintages either on account
of insufficient observations (no or low actual losses for these
vintages as yet) or on account of being less representative.
The principal methodology used in these ratings was "Moody's
Approach to Rating Consumer Loan-Backed ABS" published in September
2021.
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
better-than-expected collateral performance. The Australian job
market is a primary driver of performance.
A factor that could lead to a downgrade of the notes is
worse-than-expected collateral performance. Other reasons that
could lead to a downgrade include poor servicing, error on the part
of transaction parties, a deterioration in the credit quality of
transaction counterparties or lack of transactional governance and
fraud.
TRITON TRUST: Fitch Affirms B+ Rating on Class E Notes
------------------------------------------------------
Fitch Ratings has affirmed two classes and maintained three Under
Criteria Observation (UCO) from Triton Trust No.9 NTX Warehouse
Series 2018-1. The transaction consists of notes backed by a pool
of first-ranking Australian residential mortgages originated by
Columbus Capital Pty Limited.
The notes were issued by Perpetual Corporate Trust Limited as
trustee for Triton Trust No.9 NTX Warehouse Series 2018-1.
Triton Trust No.9 NTX Warehouse Series 2018-1
DEBT RATING PRIOR
---- ------ -----
A LT AAsf Under Criteria Observation AAsf
B LT Asf Affirmed Asf
C LT BBBsf Affirmed BBBsf
D LT BBsf Under Criteria Observation BBsf
E LT B+sf Under Criteria Observation B+sf
TRANSACTION SUMMARY
The transaction is a warehouse that purchases receivables on a
revolving basis during an availability period. The current term for
the availability period expires in April 2022; however, it can be
extended at the request of the manager and the subsequent agreement
of the financiers, and is subject to eligibility criteria and pool
parameters. The transaction will move to sequential principal
payment if an amortisation event is subsisting.
Payment of class A subordinated interest and of class B, C, D and E
residual interest is excluded from Fitch's rating analysis. Class A
subordinated interest is subordinated below losses if an
amortisation event is subsisting, while class B, C, D and E
residual interest is subordinated below losses when the outstanding
asset balance is below AUD16.5 million. Non-payment of subordinated
or residual interest will not lead to an event of default, as
outlined in the transaction documentation.
KEY RATING DRIVERS
Resilient Asset Performance: There were no loans in 30+ day or 90+
day arrears as at end-August 2021, against 1.14% and 0.65%,
respectively, for Fitch's 2Q21 Dinkum RMBS Index. Transaction
performance has been strong, with no losses since closing.
The transaction has an availability period, therefore, Fitch's
analysis is based on a proxy pool stressed to pool parameters
provided by Columbus Capital and further stressed by Fitch. Stress
levels were defined based on originator and historical data and
Fitch's forward-looking view. Stresses were applied to a number of
portfolio characteristic to reflect the historical portfolio
composition and Fitch's expected future portfolio composition of
the pool.
The portfolio's 'AAAsf' weighted-average (WA) foreclosure frequency
of 15.5% is driven by the stressed WA unindexed loan/value ratio
(LVR) of 67.9%, loans with LVR greater than 80% making up 10.3% of
the portfolio, stressed investment loans of 74.9% and
Fitch-adjusted 30+ day arrears of 1.62%. The 'AAAsf' WA recovery
rate of 49.7% is driven by the stressed portfolio's WA indexed
scheduled LVR of 70.6%.
Limited Liquidity Risk: Full cash flow analysis was performed for
the trust utilising documented note limits and minimum credit
enhancement (CE). Class A, B, C, D and E notes have documented
minimum CE percentages of 6.33%, 3.80%, 2.30%, 1.60% and 1.00%,
respectively, during the availability period. The transaction
employs a sequential structure after the availability period, with
no pro rata pay down permitted. The transaction also benefits from
a liquidity reserve sized at 1.4% of the outstanding note balance,
subject to a documented floor of AUD375,000. Class B and C pass all
relevant stresses applied in the cash-flow analysis. Class A, D and
E were placed UCO on 27 May 2021 following the publication of
Fitch's APAC Residential Mortgage Rating Criteria. Fitch has
maintained the UCO as the transaction is in the process of being
restructured. These notes will be reviewed after the finalisation
of the restructure and no later than 26 November 2021.
Operational and Servicing Risk Consistent with Market Standard:
Columbus Capital is a non-bank financial institution that commenced
lending in 2006, with specialisations in Australian residential
mortgage lending, third-party loan servicing and trust management.
Fitch undertook an operational review and found that the operations
of the originator and servicer were comparable with market
standards and that there were no material changes that may affect
Columbus Capital's ongoing ability to undertake origination,
administration and collection activities. The collections and
servicing activities have not been disrupted due to the Covid-19
pandemic, as staff can work remotely and are able to access the
office, if needed.
Economic Rebound in Medium-Term Supports Outlook: The Stable
Outlook is supported by Australia's management of the pandemic,
including the nationwide vaccine rollout that is facilitating the
removal of lockdown restrictions. Fitch expects Australia's GDP to
dip in 3Q21, cutting Fitch's 2021 forecast to 3.7%, with an
unemployment rate of 5.2%. GDP growth should accelerate to 4.5% in
2022 and the unemployment rate should fall to 4.4%.
The key rating drivers listed in the applicable sector criteria,
but not mentioned above, are not material to this rating action.
RATING SENSITIVITIES
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 positions beyond Fitch's expectations, where
available credit enhancement cannot compensate for the higher
credit losses and cash flow stresses, all else being equal.
-- The key rating sensitivity for the resolution of the UCO
status will be Fitch's completion of its analytical work
reviewing the ratings under its new criteria and the new
transaction structure.
Downgrade Sensitivity
Unanticipated increases in the frequency of defaults and loss
severity on defaulted receivables could produce loss levels higher
than Fitch's base case and are likely to result in a decline in CE
and remaining loss-coverage levels available to the notes.
Decreased CE may make certain note ratings susceptible to negative
rating action, depending on the extent of the coverage decline.
Hence, Fitch conducts sensitivity analysis by stressing a
transaction's initial base-case assumptions.
The rating sensitivity section provides insight into the
model-implied sensitivities the transaction faces when assumptions
- WA foreclosure frequency or WA recovery rate - are modified,
while holding others equal. The modelling process uses the
modification of default and loss assumptions to reflect asset
performance in up and down environments. The results should only be
considered as one potential outcome, as the transaction is exposed
to multiple dynamic risk factors.
-- Note: A / B / C / D / E
-- Rating: UCO/ Asf/ BBBsf/ UCO/ UCO
-- Increase defaults by 15%: UCO/ BBB+sf/ BBB-sf/ UCO/ UCO
-- Increase defaults by 30%: UCO/ BBBsf/ BBB-sf/ UCO/ UCO
-- Reduce recoveries by 15%: UCO/ BBB+sf/ BB+sf/ UCO/ UCO
-- Reduce recoveries by 30%: UCO/ BBBsf/ BBsf/ UCO/ UCO
-- Increase defaults by 15% and reduce recoveries by 15%: UCO/
BB+sf/ BBsf/ UCO/ UCO
-- Increase defaults by 30% and reduce recoveries by 30%: UCO/
BB+sf/ BB-sf/ UCO/ UCO
-- The ratings of class C, D and E notes are independent of
lenders' mortgage insurance (LMI). LMI is not required to
support the ratings due to the level of credit support
provided by the lower notes. The ratings of class A and B
notes are dependent on LMI.
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 CE that would fully compensate for credit losses and
cash flow stresses commensurate with higher rating scenarios,
all else being equal.
-- The key rating sensitivity for the resolution of the UCO
status will be Fitch's completion of its analytical work
reviewing the ratings under its new criteria and the new
transaction structure.
-- Note: A / B / C / D / E
-- Rating: UCO/ Asf/ BBBsf/ UCO/ UCO
-- Decrease defaults by 15%; increase recoveries by 15%:
UCO/A+sf/A-sf/UCO/UCO
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Structured Finance
transactions have a best-case rating upgrade scenario (defined as
the 99th percentile of rating transitions, measured in a positive
direction) of seven notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of seven notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings
are based on historical performance.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. There were no findings that were
material to this analysis.
Prior to closing, Fitch sought to receive a third-party assessment
conducted on the asset portfolio information, but none was made
available for this transaction.
As part of its ongoing monitoring, 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.
VENTIA SERVICES: Moody's Puts Ba2 CFR Under Review for Upgrade
--------------------------------------------------------------
Moody's Investors Service has placed Ventia Services Pty Ltd's Ba2
corporate family rating and Ventia Finco Pty Limited's Ba2 senior
secured bank credit facility rating on review for upgrade. The
outlooks were changed to ratings under review from stable.
The action follows Ventia lodging a prospectus with the Australian
Securities and Investment Commission for an initial public offering
(IPO).
RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATINGS
Moody's views the planned IPO as being credit positive because the
rating agency anticipates Ventia will use a portion of the net
proceeds to pay down outstanding debt. Additionally, Moody's views
the proposed reduction in concentrated ownership by the private
equity partner, Apollo Global Management LLC, and CIMIC Group
Limited (Baa2 stable) to 22% each from 50% each, and the
appointment of four independent directors to the board as being
credit positive.
Ventia plans to use the proceeds, together with its cash on hand
and AUD750 million syndicated facility, to reduce total debt
outstanding by around AUD541 million to around AUD750 million. The
company will also put in place a AUD400 million syndicated
revolving credit facility, which Moody's expects to remain largely
undrawn. As a result, Moody's expects Ventia's adjusted debt/EBITDA
to reduce to around 2.4x for the fiscal year ending December 2021
from 5.4x for fiscal 2020.
Moody's views Ventia's business profile as having investment-grade
characteristics, with long-dated contracts providing stable cash
flows. However, Ventia's current Ba2 rating reflects the risks of
concentrated ownership and high financial leverage, partially due
to high shareholder returns in the past. Although Apollo will
retain a stake of around 22% after the IPO, Moody's expects the
company to adopt a more conservative financial policy going
forward, which is a positive governance consideration under the
rating agency's environmental, social and governance (ESG)
framework.
Moody's expects the review to conclude shortly after closing of the
IPO and Ventia's refinancing of existing debt in November 2021.
The principal methodology used in these ratings was Construction
published in September 2021.
Ventia is a leading services provider to clients in Australia and
New Zealand across the Defence & Social Infrastructure,
Telecommunications, Infrastructure Services and Transport sectors.
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C H I N A
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FANTASIA HOLDINGS: Fitch Affirms Then Withdraws 'RD' IDR
--------------------------------------------------------
Fitch Ratings has affirmed Fantasia Holdings Group Co., Limited's
Long-Term Foreign-Currency Issuer Default Rating (IDR) at
'Restricted Default' (RD) and its senior unsecured rating and the
ratings on its outstanding US-dollar bonds at 'C' with a Recovery
Rating of 'RR4'.
Fantasia failed to repay its USD206 million senior notes due 4
October 2021. There is no grace period for the bond repayment. The
non-payment is consistent with an 'RD' rating, signifying the
uncured expiry of any applicable grace period, cure period or
default forbearance period following a payment default on a
material financial obligation.
At the same time, Fitch has withdrawn the ratings for commercial
reasons.
KEY RATING DRIVERS
Non-Payment of Notes: Fantasia's failure to make a payment on the
US-dollar bonds due 4 October 2021 is consistent with Fitch's
definition of an 'RD' rating, as the company has experienced an
uncured payment default on a significant financial obligation.
However, it has not yet entered into bankruptcy filings,
administration, receivership, liquidation, or other formal
winding-up procedures, and has not otherwise ceased operating.
Cross Default with Notes: The non-payment of Fantasia's October
2021 US-dollar bond triggered events of default on the company's
other US-dollar notes, which will become immediately due and
payable if the bond trustee or holders of at least 25% in aggregate
principal amount of the offshore notes declare so.
RATING SENSITIVITIES
No longer relevant, as the ratings have been withdrawn.
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.
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.
MODERN LAND: Says Default Triggers Earlier Repayment Deadlines
--------------------------------------------------------------
Reuters reports that Modern Land (China) said on Nov. 1 a default
on a bond repayment last week has pulled forward repayment dates
for a further $321 million worth of notes, and the company withdrew
an interim dividend to hold on to cash.
Reuters relates that the development highlights the impact of China
Evergrande Group, which narrowly averted a costly default, on the
rest of the high-yield sector as liquidity dries up and sales
slow.
According to Reuters, Modern Land said last week it had not repaid
principal and interest on its 12.85% senior notes with an
outstanding principal of $250 million.
The non-payment triggered conditions under which other financing
arrangements, including 9.8% green senior notes due 2023 worth $321
million, may become immediately payable. No bondholders have yet
enforced any action, the company said, Reuters relays.
However, the company said it has already got notices from an
offshore creditor demanding early repayment of $23.6 million, and
was in talks for a waiver to avoid the payment and further
enforcement.
Reuters adds that the developer also withdrew its recommendation
for an interim dividend of HK4.81 cents per share declared in
August due to "unexpected liquidity issues", and was currently
taking stock of other repayment obligations.
About Modern Land
Modern Land (China) Co., Limited is an investment holding company
principally engaged in the property development and property
investment businesses. The Company's property projects are mainly
developed under the brand of MOM. The Company is also engaged in
the hotel operation, project management, real estate agency
services and immigration services business. Through its
subsidiaries, the Company is also engaged in the provision of
technology development and consulting services.
As reported in the Troubled Company Reporter-Asia Pacific on Oct.
18, 2021, Fitch Ratings has downgraded Modern Land (China) Co.,
Limited Long-Term Foreign- and Local-Currency Issuer Default
Ratings to 'C' from 'B'. At the same time, Fitch has downgraded its
senior unsecured rating and the rating on its outstanding bonds to
'C' with a Recovery Rating of 'RR6' from 'B' with a Recovery Rating
of 'RR4'.
The downgrades follow Modern Land's announcement of the launch of a
consent solicitation to extend the maturity of USD250 million of
outstanding senior notes due October 25, 2021 by three months to
January 25, 2022. The company is also seeking to shorten the notice
period for the optional redemption of the bond and to redeem
USD87.5 million of the principal amount of the bond.
RONSHINE CHINA: Fitch Lowers LT Foreign Currency IDR to 'B'
-----------------------------------------------------------
Fitch Ratings has downgraded China-based homebuilder Ronshine China
Holdings Limited's Long-Term Foreign-Currency Issuer Default Rating
(IDR) to 'B' from 'B+'. The Outlook is Negative. Fitch has also
downgraded the senior unsecured rating and the rating on Ronshine's
outstanding US dollar senior notes' to 'B', from 'B+', with
Recovery Ratings remaining at 'RR4'. Fitch has removed all the
ratings from Under Criteria Observation (UCO), on which they were
placed on 20 October 2021.
The downgrade and Negative Outlook reflect uncertainty over
Ronshine's refinancing of significant offshore and onshore bond
maturities up to 2022, in light of capital-market volatility and
tight funding conditions. Ronshine will need to repay the bonds
with its own cash if its capital-market access remains limited. It
also reflects Fitch's view that there are uncertainties over
Ronshine's margin recovery, which was slower than Fitch expected in
1H21.
KEY RATING DRIVERS
Weakened Funding Access: Ronshine's capital-market access appears
to have deteriorated as its bonds are trading at a significant
discount. Fitch believes it may be challenging for the company to
issue or extend its bonds under current market conditions,
especially offshore.
Substantial Maturities: Ronshine has CNY20.2 billion of bonds
maturing or turning puttable from now to end-2022, including USD137
million of senior notes due in December 2021, USD198 million in
February 2022, USD466 million in March 2022 and USD690 million in
October 2022. Management says Ronshine had available cash of CNY23
billion (excluding pre-sales regulated balances) at end-September
2021, which seems enough to cover the near-term maturities.
However, over 60% of the unrestricted cash is at the project level,
which may not be readily available for the holding company to repay
debt.
Imminent Liquidity Risk Manageable: Fitch expects Ronshine's USD137
million of senior notes due in December and CNY1.5 billion of
domestic bonds puttable in November to be covered by the company's
cash balance and net operating cash inflow in 4Q21. Fitch thinks
Ronshine's internal cash generation remains robust, which could
alleviate its near-term repayment pressure.
Ronshine will release attributable sellable resources of CNY34.7
billion for the fourth quarter, including CNY20.8 billion in Tier 1
and strong Tier 2 cities with strong demand. Fitch estimates
Ronshine's total sales will increase by 3% to about CNY160 billion
in 2021. The company achieved contracted sales of about CNY122
billion in 9M21. Its sales in 3Q21 fell by 1% in 3Q21, less than
the 15% decrease nationwide.
Business Profile May Weaken: Fitch believes prolonged weak access
to capital markets and use of cash on hand for debt repayment will
affect Ronshine's ability to replenish its land bank, which will
undermine its business profile. Fitch expects company's land bank
life to decrease to around two years in 2022 and below 1.5 years in
2023 if the company continues to prioritise debt repayment over
land replenishment. Ronshine's land bank quality could also
deteriorate if it cuts land premium significantly.
Margin Recovery Uncertain: Fitch sees uncertainties in the recovery
of Ronshine's profitability. The company focuses on high-tier
cities, such as Shanghai and Hangzhou, to preserve sales and cash
collection. Fitch believes demand is robust in these cities, but
the margins are likely to remain thin and policy risks high. Fitch
believes Ronshine's business profile can be sustained if the
margins and return efficiency can recover and remain at levels
similar to peers' without material deterioration in land bank life
and quality.
Ronshine's EBITDA margin and return efficiency are low relative to
similarly rated peers', with its EBITDA margin, net of land
appreciation tax (LAT) and excluding write-down of inventory,
falling to 4.4% in 1H21 from 6.1% in 2020. The return efficiency
(annualised) was only 2.2% at end-1H21 and 4.5% at end-2020.
Stable Leverage: Fitch expects leverage (net debt/net
development-property assets) to stay at 45%-50% over the next two
years. Fitch assumes the company will spend 35%-40% of attributable
sales proceeds to acquire land. Ronshine incurred an attributable
land acquisition cost of CNY21 billion in 1H21, with some of the
cash outflow to occur in 2H21. The company spent another CNY1.6
billion on land acquisition in 3Q21; however, management expects no
land acquisitions in 4Q21 to preserve liquidity.
High Non-Controlling Interest: Ronshine's non-controlling interest
(NCI) accounted for about 65% of total equity, which is high among
peers. This reflects its reliance on capital contributions from
non-controlling shareholders - mostly developers - to finance its
expansion. This reduces Ronshine's need for debt funding, but
creates the potential for cash leakage and reduces financial
flexibility because homebuilders with lower NCI can dispose of
stakes in projects to cut leverage.
DERIVATION SUMMARY
Ronshine's ratings are constrained by the increasing refinancing
risk of its upcoming capital-market maturities. Ronshine's EBITDA
margin and return efficiency are also low when compared against
peers with similar rating levels.
Ronshine's EBITDA margin (net of LAT) of about 6% in 2020 and 4% in
1H21, is weaker than the majority of its peers in the 'B' rating
category. The weaker profitability is offset by Ronshine's larger
attributable sales scale of CNY70 billion-75 billion, its
sufficient quality land bank and lower leverage, measured by net
debt/net development property assets, than 'B' peers.
Compared with Risesun Real Estate Development Co., Ltd.
(B/Negative), whose ratings are also constrained by increasing
refinancing risk, Ronshine's attributable sales scale is smaller,
return efficiency is lower and leverage is slightly higher.
However, Ronshine has a better quality land bank, which is focused
on higher-tier cities in the Yangtze River Delta, than Risesun's,
which is concentrated in the pan-Beijing area where demand is less
robust and more vulnerable to policy risks. This can support
Ronshine's stronger internal cash generating ability.
Risesun's capital market maturities (CNY12 billion from now until
end-2022) is smaller than that of Ronshine, but Ronshine appears to
have some access to the domestic bond market as it issued CNY1
billion of onshore bonds in July 2021. It also resold the CNY1
billion of domestic bonds which were putted in July 2021.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Total annual contracted sales of CNY150 billion-160 billion in
2021-2023 (2020: CNY155 billion);
-- Gross profit margin to recover to 13% in 2021, and 15% in 2022
and 2023 (11% in 2020);
-- Land acquisition outflow to account for 35%-40% of sales
proceeds in 2021-2023.
Key Recovery Rating Assumptions
-- The recovery analysis assumes that Ronshine would be
liquidated rather than reorganised as a going-concern in
bankruptcy, as the former yields a higher value.
-- Fitch uses a multiple assumption tool to derive a 4x EBITDA
multiple to estimate the going-concern value for Ronshine.
-- 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.
-- 70% advance rate to accounts receivable;
-- 20% advance rate to investment properties, as the rental yield
was only 1%;
-- 60% advance rate to land and buildings;
-- 60% advance rate to adjusted net inventory to reflect
Ronshine's EBITDA margin of below 20%, while Fitch believes
its land bank quality is satisfactory as it is mostly in Tier
1-2 cities. Fitch included the restricted cash in the
inventory as they are restricted for construction of
properties, which can be turned into inventory for sale;
-- As Ronshine's available cash is larger than its trade
payables, Fitch gives a 60% advance rate to its excess cash,
after deducting 3 months of contracted sales, assuming this
cash will be used to replenish its land bank.
The allocation of value in the liability waterfall results in
recovery corresponding to a Recovery Rating of 'RR4' for the senior
unsecured offshore bonds.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Deterioration in liquidity or continued interruption to bond
market access;
-- Deterioration in contracted sales and sales proceeds;
-- Unsustainable EBITDA margin and return efficiency.
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- The Outlook may be revised to Stable if the negative
sensitivities are not met.
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: Ronshine had unrestricted cash and term deposits
of CNY27.3 billion at end-June 2021, sufficient to cover its
short-term debt of CNY25.1 billion, of which CNY14.8 billion are
capital-market maturities (including onshore bonds of CNY6.4
billion puttable within a year and CNY2.3 billion of asset-backed
securities). However, the majority of unrestricted cash is at the
project level and may not be used to repay the holding company's
debt.
Ronshine issued CNY1 billion of 6.5% five-year onshore bonds
(puttable at the end of the second and fourth years) in July 2021,
but has not issued any debt in the offshore capital market in
2H21.
ISSUER PROFILE
Hong Kong-listed Ronshine is a multi-regional property developer in
China. The company had unsold attributable land bank of 11.2
million square metres in saleable gross floor area across China as
of end-1H21, sufficient to support around three years of sales.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch's calculation of net property assets used in the leverage
calculation includes: inventory, net deposits and prepayments for
projects, investment properties, property, plant and equipment
(land and buildings), land-use rights, investments in joint
ventures (JVs), net amounts due from JVs, and net amount due from
non-controlling interests, less contract deposits and deposits
received.
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.
SUNING.COM CO: Reports Second-Largest Quarterly Loss in 17 Years
----------------------------------------------------------------
Caixin Global reports that Suning.com Co. Ltd. finished this year's
third quarter CNY4.12 billion ($632 million) in the red, its
second-largest quarterly loss since it first went public 17 years
ago as sales continued to slump.
The embattled retailing giant's dismal bottom line was a reversal
from a reported net profit of CNY713 million in last year's
third-quarter, and it approached the company's record CNY4.8
billion loss for the fourth quarter of 2020, Caixin discloses
citing an exchange filing on Oct. 31.
Suning.com's revenue slumped 64.82% year-on-year in the third
quarter to nearly CNY22 billion, the lowest quarterly figure since
2012, due to "record-low" inventories and "dramatically" lower
sales, its filing said, Caixin relays.
Suning.com has been struggling under a mountain of debt after it
borrowed significantly to fund an acquisition spree from 2015 to
2019, as losses accumulated from its core retail business,
according to Caixin.
In July, the company secured a $1.4 billion lifeline from a
consortium backed by Alibaba Holdings Co. Ltd. and several
government funds, Caixin recalle. The bailout comes in the form of
an equity transfer deal involving four major shareholders,
including the founder of Suning.com's parent, Zhang Jindong, who
yielded a 16.96% stake to a fund created by the rescue consortium
led by the government of East China's Jiangsu province.
Suning.Com Co., Ltd., operates consumer electronic products and
appliances sales stores. The Company sells telecommunication
equipment, telecommunication components, household appliances,
digital equipment, refrigerators, washing machines, and other
products. Suning.Com also provides equipment installation and
repairing services.
YANGO GROUP: Moody's Lowers CFR to Caa2, Placed on Further Review
-----------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of Yango Group Co., Ltd to Caa2 from B2.
At the same time, Moody's has downgraded to Caa3 from B3 the backed
senior unsecured rating on the bonds issued by Yango Justice
International Limited. The bonds are unconditionally and
irrevocably guaranteed by Yango.
Moody's has also placed all the ratings on review for further
downgrade.
The outlook was negative prior to the ratings being placed on
review for downgrade.
"The downgrade reflects the company's increased liquidity risk
because of its weakened cash buffer, large near-term debt maturity
and constrained access to funding," says Celine Yang, a Moody's
Vice President and Senior Analyst.
"The review for downgrade reflects uncertainty over the company's
ability to repay all of its debt that will mature or become
puttable in the coming 6-12 months," adds Yang.
RATINGS RATIONALE
On November 1, 2021, Yango announced a consent solicitation to
exchange three of its USD bonds maturing or becoming puttable
before March 31, 2022, with a proposed new note maturing on
September 15, 2022. It also sought to amend some of the terms of
five of its bonds maturing between 2023 and 2025.
The minimum acceptance amount of the exchange offer shall be 85% of
the outstanding principal of these bonds and the exchange offer
will expire on November 10, 2021.
The proposed exchange offer highlights Yango's tight liquidity,
following its decline in reported unrestricted cash to RMB21.0
billion as of the end of September 2021, from RMB33.6 billion as of
the end of June 2021.
Moody's expects Yango may not be able to mobilize all of its cash
holdings to repay its maturing debts, given that most of it resides
in its project companies. In addition, Yango's exposure to its
joint ventures is significant, which could limit its ability to
control its cash flow.
While Yango's has an established track record in its key markets,
large operating scale and diversified land reserve, Moody's expects
Yango's contracted sales to decline over the next 6-12 months
because of weaker consumer sentiment amid tight funding conditions.
This will lower the company's operating cash flow and in turn its
liquidity.
Yango Justice International Limited's Caa3 senior unsecured debt
rating is one notch lower than Yango's Caa2 CFR due to structural
subordination risk. The subordination risk reflects the fact that
the majority of Yango's claims are at its operating subsidiaries
and, in the event of a bankruptcy, have priority over claims at the
holding company. In addition, the holding company lacks significant
mitigating factors for structural subordination. Consequently, the
expected recovery rate for claims at the holding company will be
lower.
In terms of environmental, social and governance (ESG) factors,
Moody's has taken into account the private enterprise status and
weak liquidity of Yango's parent, Fujian Yango Group Co., Ltd., and
the heightened risks posed by its shareholders' share pledge
financing. Moody's also considered that two of its board members
did not approve its third-quarter 2021 financial report published
on the Shanghai Stock exchange.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's will review (1) the result of the announced exchange offer
and consent solicitation and the associated credit implications on
Yango, and (2) Yango's abilities to restore its liquidity position
through repaying or refinancing the upcoming debt maturities over
the next 12-18 months.
Yango's rating could be further downgraded if its liquidity weakens
further or it defaults on its debt.
An upgrade of the ratings is unlikely, given the review for
downgrade. However, Moody's could confirm the ratings if Yango
materially improves its liquidity and access to funding.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.
Founded in 1995 in Fuzhou, Yango Group Co., Ltd (Yango) is a
Chinese property developer that focuses on the Greater Fujian area
and the Yangtze River Delta region. The company was listed on the
Shenzhen Stock Exchange in 2002 and had a market capitalization of
around RMB14.8 billion as of October 28, 2021.
=========
I N D I A
=========
ADITYA AGRO: ICRA Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Aditya
Agro Foods in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B+(Stable): ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 22.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based/CC COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term– 5.00 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Aditya Agro Foods (AAF) was incorporated as a partnership firm in
the year 2009 and is engaged in the milling of paddy to producing
raw and boiled rice. The firm is promoted by Mr. Rajendra Reddy and
his family members who have extensive experience in the rice
milling industry. The firm's rice mill is located near Mutchumilli
village in East Godavari district of Andhra Pradesh with an
installed production capacity of 72,000 MTPA.
CHANDAN TEXTILES: ICRA Keeps B Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Chandan
Textiles in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 3.00 [ICRA]B (Stable) ISSUER NOT
Fund Based/CC COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 3.30 [ICRA]B (Stable) ISSUER NOT
Fund Based/TL COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Chandan Textiles is a proprietorship firm established in the year
2002 by Mr. Chandan Malhotra. The firm is engaged in the business
of manufacturing and trading of pure silk fabrics like chiffon,
georgette and crape. The concern generates ~70% of the revenue from
the state of Karnataka, followed by 20% from Kolkata and the rest
from other States.
CHEMTRADE OVERSEAS: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Chemtrade
Overseas Private Limited in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]B+ (Stable); ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based/CC COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 20.00 [ICRA]B+ (Stable) ISSUER NOT
NonFund Based COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Chemtrade Overseas Private Limited was incorporated in 1992 and
began its operations in the same year. The company trades in
various chemicals, which find application mainly in the
petrochemicals, pharmaceuticals, paints, textiles, laminates,
pesticides, textile, cosmetics etc. The company's registered office
is in Mumbai.
DARJEELING POWER: ICRA Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Darjeeling
Power Private Limited (erstwhile Darjeeling Power Limited) in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 22.75 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 0.78 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term– 1.47 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
Limits to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Darjeeling Power Private Limited (erstwhile known as Darjeeling
Power Limited) is a Special Purpose Vehicle (SPV) incorporated to
develop, own and operate a 3 MW small hydro power (SHP) project
known as Shaung Mini Hydropower Project. The project is located in
Kinnaur District of Himachal Pradesh (HP). Darjeeling Power Private
Limited was 2 promoted by the Mumbai based Somani Group which is
engaged in education as well as hydro power. On March 23, 2016, the
entity converted its legal status to a Private Limited Company from
a Limited Company.
H.M. INDUSTRIAL: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has retained the long-term ratings of H.M. Industrial Private
Limited in the 'Issuer Not Cooperating' category. The ratings are
denoted as "[ICRA] D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Non-convertible 6.00 [ICRA] D; ISSUER NOT COOPERATING;
Debentures (NCD) Rating continues to remain under
'Issuer Not Cooperating' category
Proposed 9.00 [ICRA] D; ISSUER NOT COOPERATING;
Nonconvertible Rating continues to remain under
Debentures (NCD) 'Issuer Not Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
H.M. Industrial Private Limited (HMIPL) was initially incorporated
in 1991 as a partnership firm and was converted into a private
limited company in mid-June FY2017. HMIPL is engaged in diversified
business segments, such as cotton ginning, seed crushing and
stainless steel/seamless pipes and tubes manufacturing. The company
has a solvent extraction plant as well that processes castor oil
and de-oiled cakes from castor seeds, as well as a British Standard
Specifications (BSS) plant for refining castor oil.
Its manufacturing facility is at Kapadwanj in Kheda, Gujarat. In
FY2018, the company has set up a new manufacturing unit to produce
stainless steel pipes and tubes with an installed manufacturing
capacity of ~1,15,200 metric tonnes per annum. Its commercial
operations began from December 2017.
JAY METAL: ICRA Keeps B Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Jay Metal
in the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B (Stable)/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 2.50 [ICRA]B (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Term Loan 2.85 [ICRA]B (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Short-term (0.18) [ICRA]A4; ISSUER NOT
Facility COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Jay Metal (JM) is a partnership firm which manufactures cylinder
liners and sleeves using the centrifugal casting process with an
annual installed capacity for manufacturing nine lakh pieces of
cylinder liners. The manufacturing facility is located at Shapar,
Rajkot in Gujarat, which includes an in-house machining center
which consists of two CNC machines. The firm started commercial
operations from July 22, 2013 and is promoted by the Sakhiya family
which has more than a decade of experience in the cylinder liner
business.
KHODAL COT-GIN: ICRA Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Shree
Khodal Cot-Gin Pvt. Ltd. in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]D: ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 6.50 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term– 1.85 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Shree Khodal Cot-Gin Pvt. Ltd. (SKCGPL) was incorporated in 2012
and it commenced ginning and pressing operations in January 2015 by
setting up a manufacturing facility at Rajkot, Gujarat. The
company's facility is equipped with 30 ginning machines and a
pressing machine with a total capacity to process 28,000 MT of raw
cotton annually. The operations of the firm are managed by Mr.
Kamleshbhai Vekaria and Mr. Bharatbhai Vekaria.
KRISHNA RICE: ICRA Keeps B- Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Shree
Krishna Rice Mills in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA] B-(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based 15.00 [ICRA]B- (Stable) ISSUER NOT
Limits COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Shree Krishna Rice Mills (SKRM) is a partnership firm, was set up
in 2010 by Mr. Ravi Gupta, Mr. Krishan Chand and Mrs. Urmila Gupta.
SKRM is engaged in processing and export of basmati rice to
countries in the Middle East. It has a plant at Karnal (Haryana)
which has a milling capacity of 6 tonnes per hour.
KRN ALLOYS: ICRA Keeps B- Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has retained the ratings for the bank facilities of KRN Alloys
Private Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B- (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 5.30 [ICRA]B- (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long-Term- 3.00 [ICRA]B- (Stable) ISSUER NOT
Fund based/ COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long-term- 2.76 [ICRA]B- (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
KRN Alloys Private Limited (KRN), incorporated in 2008, is a
manufacturer of steel billets and ingots, which are supplied to
rolling mills and steel traders in Rajasthan and Gujarat. The
company has two manufacturing units in Metoda, district Rajkot,
Gujarat (Unit-I) and Beawar, Rajasthan (Unit-II). The combined
capacity of the two units is about 34,000 metric tons (MT) per
year. While Unit-I commenced production in February 2009 and has a
capacity of ~10,000 MT per year, Unit-II commenced production in
June 2012 and has a capacity of ~24,000 MT per year.
LAXMI GUAR: ICRA Keeps B Debt Ratings in Not Cooperating Category
-----------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Shree
Laxmi Guar Gum Industries in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]B (Stable): ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 1.44 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 4.50 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Shree Laxmi Guar Gum Industries (SKCGPL) was incorporated in 2012
and it commenced ginning and pressing operations in January 2015 by
setting up a manufacturing facility at Rajkot, Gujarat. The
company's facility is equipped with 30 ginning machines and a
pressing machine with a total capacity to process 28,000 MT of raw
cotton annually. The operations of the firm are managed by Mr.
Kamleshbhai Vekaria and Mr. Bharatbhai Vekaria.
M V AGRO: ICRA Keeps D Debt Ratings in Not Cooperating Category
---------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of M V Agro
Renewable Energy Pvt. Ltd. in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]D/[ICRA]D: ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 11.50 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term– 4.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long Term/ 0.50 [ICRA]D/[ICRA]D; ISSUER NOT
Short Term- COOPERATING; Rating Continues
Unallocated to remain under the 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
M V Agro Renewable Energy Private Limited, incorporated in year
2014, manufactures bio fuel pellets from agro wastes, plant
residues, stems and plant biomass as the primary sources of raw
materials. The company has an installed capacity of 150 tons per
day and its manufacturing facility is located in Praskasham
District, Andhra Pradesh. The company started its operations in
2016.
MARUTI COTTON: ICRA Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Maruti
Cotton Industries in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based– 1.95 [ICRA]D ISSUER NOT COOPERATING;
Term Loan Rating continues to remain under
'Issuer Not Cooperating'
Category
Fund Based– 6.00 [ICRA]D ISSUER NOT COOPERATING;
Cash Credit Rating continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Established in 2014, Maruti Cotton Industries (MCI) commenced
commercial operations on 28th December 2014 and is engaged in
manufacture of cotton bales through ginning and pressing of raw
cotton. The manufacturing unit of the company is located at Kadi
(Mehsana) - an area with easy availability of raw cotton, and is
equipped with 24 ginning machines and one fully automated pressing
machine having a production capacity of 250 bales per day.
MILTON CYCLE: ICRA Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Milton
Cycle Industries Limited in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA] B+(Stable); ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 10.00 [ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating continues
Limits to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
MCIL commenced operations in 1960 to function as a component
manufacturer involved in the manufacturing of bicycle parts like
chains, freewheels, and BB Axles for Atlas Cycles (Haryana)
Limited. Subsequently, in July 2006, MCIL developed into a complete
bicycle manufacturing unit, besides being an ancillary to the ACL's
Sahibabad division. MCIL now a plethora of bicycle models catering
to the kids, fancy, roadsters segments marketed through its
dealer-distributor network in Uttar Pradesh, Bihar, Jharkhand,
Andhra Pradesh, and Nepal etc.
NARMADA DAL: ICRA Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Narmada
Dal Mill in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 4.00 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Cash Credit 10.00 [ICRA]B+ (Stable) ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Narmada Dal Mill is a partnership firm started on 23rd April 2013
and is promoted and managed by Mr. Ratilal Modi along with his
family members. The firm has set up plant for processing of pulses
such as green gram to produce moong dal, mogar and polished moong.
The commercial production of the firm commenced from end of
February 2014. The manufacturing facilities of the firm are
situated in Deesa, Gujarat having an total annual installed
capacity of manufacturing 18000 metric tonnes of moong products.
NEOTECH EDUCATION: ICRA Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Neotech
Education Foundation in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based– 15.90 [ICRA]D ISSUER NOT COOPERATING;
Term Loan Rating continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Incorporated in November 2011, under Section 25 of Company's act
1956, Neotech Education Foundation (NEF) has set up a college
namely "Neotech Technical Campus" (NTC) in Vadodara, Gujarat. NEF
is a part of Gujarat Technical University (GTU) and affiliated to
All India Council for Technical Education (AICTE) norms. The
college offers civil, electrical and mechanical engineering courses
at undergraduate level. Additionally, the college also started
offering Diploma courses in civil, computer, electrical and
mechanical streams with the total intake of 300 students per batch
from academic year 2014-15.
NOOLI JEWELLERS: ICRA Keeps B+ Debt Rating in Not Cooperating
-------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Nooli
Jewellers in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA] B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 22.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
About 70 years ago, Nooli Jewellers formerly known as Nooli
Venkatratnam and was promoted by Mr. Nooli Venkatranam. In the year
1979 name of entity changed to Nooli Jewellers. The firm is
currently engaged in manufacturing and retailing of gold, silver
and stone studded jewellery. The firm's jewellery collection ranges
from 22 karat gold jewellery to 18 karat jewelleries studded with
diamonds, gemstones like rubies, emeralds, sapphires, semiprecious
stones. NJ sells all forms of jewellery including earrings,
necklaces, bangles, rings, anklets etc. The retail show room of the
firm is at Tanuku district of Andhra Pradesh. It's a family run
business and promoters have an experience of over 7 decades in the
jewellery business.
PADMASHRI DR: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Padmashri
Dr. Vitthalrao Vikhe Patil Sahakari Sakhar Karkhana Limited in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based- 413.00 [ICRA]D; ISSUER NOT COOPERATING;
Cash Credit Rating Continues to remain under
'Issuer Not Cooperating'
Category
Fund Based- 135.00 [ICRA]D; ISSUER NOT COOPERATING;
Cash Credit Rating Continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Padmashri Dr. Vitthalrao Vikhe Patil Sahakari Sakhar Karkhana
Limited was set up in 1950 under the Maharashtra Cooperative
Societies Act, 1960, as a role model for the development of a newly
independent India through the cooperative movement. PSSK, the first
sugar factory set up in the cooperative sector in Asia, is located
in the Pravaranagar village in Ahmednagar
(Maharashtra). The company has over 12,500 cane grower members and
over 18,000 non-producer members. It undertook its first SS in
1950-1951 with a crushing capacity of 500 tonnes crushed per day
(TCD). The crushing capacity was subsequently enhanced in stages,
with the present installed capacity as on March 31, 2018 of 5,000
TCD. The company also has a multipressure distillery unit with a
capacity of 120 KLPD. In FY2015, the company took over a sugar mill
(with 1,750 TCD capacity) located in Ganeshnagar, Ahmednagar from
the Government of Maharashtra to operate for eight years. Thus,
PSSK's combined capacity from both the units stands at 6,750 TCD as
on date.
PCL FOODS: ICRA Keeps B+ Debt Rating in Not Cooperating Category
----------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of PCL Foods
Private Limited in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA] B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 50.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
PCPL, incorporated in 2013, is a wholly-owned subsidiary of Phoenix
Commodities Private Limited. Phoenix is the ultimate holding
company of the Group and holds ~100% stake in Phoenix Global, DMCC
which in turn holds ~100% stake in PCPL. The promoters of PCPL are
Mr. Sudip Kumar Basu and Mr. Nitin Navandher (business associates
in the Phoenix Group). In March 2014, Phoenix Global, DMCC acquired
99.95% shares of the company. It is involved in trading and
manufacturing of agriculture produce like Basmati, non-Basmati
Rice, grains and pulses. The rice milling plant of PCPL is located
at Taraori, which has a paddy milling capacity of 31,200 metric
tonne per annum (MTPA) and sorting capacity of 72,000 MTPA with an
additional 2.40 lakh MTPA sorting facility on job work basis at the
Kandla Port.
In FY2018, the company reported a net profit of INR7.40 crore on an
operating income (OI) of INR735.34 crore on a provisional basis
compared with a net profit of INR2.24 crore on an OI of INR721.73
crore in the previous year.
POOJA JEWELLERS: ICRA Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Pooja
Jewellers in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 6.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Incorporated in 1993 as a sole proprietorship concern promoted by
Mr Shankar Maity, Pooja Jewellers is engaged in the trading and
manufacturing of gold and diamond jewellery. The firm operates from
Chandni Chowk, Delhi and largely supplies its products in the
wholesale market. The product portfolio of the firm includes gold
and diamond jewellery necklace sets, rings,
earrings, chains etc.
RAM RAYON: ICRA Keeps D Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Shree Ram
Rayon - Surat in the 'Issuer Not Cooperating' category. The rating
is denoted as "[ICRA]D: ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 5.44 [ICRA]D; ISSUER NOT COOPERATING;
Rating Continues to remain under
'Issuer Not Cooperating'
Category
Cash Credit 2.75 [ICRA]D; ISSUER NOT COOPERATING;
Rating Continues to remain under
'Issuer Not Cooperating'
Category
Seasonal 1.50 [ICRA]D; ISSUER NOT COOPERATING;
Cash Credit Rating Continues to remain under
'Issuer Not Cooperating'
Category
Proposed Cash 0.21 [ICRA]D; ISSUER NOT COOPERATING;
Credit Rating Continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Established in July 2014 and promoted by Patodia family, Shree Ram
Rayon (SRR) is a family managed partnership firm engaged in the
sizing and warping of yarn made out of FDY (Fully Drawn Yarn).
Based out of Surat, SRR has a manufacturing facility located in
Kamrej with an installed capacity to manufacture 5,000 MTPA of
sized yarn. The key partners of SRR are Mr. Pravin Patodiya, Mr.
Rasik Patodiya and Mr. Ajit Patodiya who collectively look after
the overall functions of business. Mr. Rasik Patodiya is a B-tech
in textile technology. All the three managing partners have
experience of over two decades in the textile industry especially
in the field of textile chemicals and are actively engaged in
textile chemical consulting activities for textile players. The
firm has also been able to capitalize on a ready customer and
supplier contacts through presence in this industry. The firm's
sister concern; Shree Ram Bearings and Chemicals is engaged in the
manufacture of textile chemicals which finds use in the sizing
process.
SAI LEELA: ICRA Withdraws B+ Rating on INR12cr Loans
----------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Sri Sai Leela Electrical Projects at the request of the company and
based on the No Objection Certificate received from its banker.
However, ICRA does not have information to suggest that the credit
risk has changed since the time the rating was last reviewed. The
Key Rating Drivers, Liquidity Position, Rating
Sensitivities, Key financial indicators have not been captured as
the rated instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 3.50 [ICRA]B+ (Stable) ISSUER NOT
Fund Based/CC COOPERATING; Withdrawn
Long Term– 8.50 [ICRA]B+ (Stable); ISSUER NOT
Non Fund Based COOPERATING; Withdrawn
Sri Sai Leela Electrical Projects (SSLEP) was set up in the year
2007 as a partnership firm by Mr. Ravi Gummadi. The firm is a
class-I electrical and civil contractor in Telangana, Andhra
Pradesh, and Maharashtra & Karnataka executing projects 2 involved
in construction of EHT, HT & LT substations, transmission lines,
internal & external electrification and underground cabling works
for private and government clients.
SRG SPINNING: ICRA Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA has retained the ratings for the bank facilities of SRG
Spinning And Weaving Mills Private Limited in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA] B+
(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 7.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based/CC COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
SRG Spinning And Weaving Mills Private Limited (SRG) was
incorporated in February 2013 and commenced the commercial
operations in June 2014. The company is engaged in the business of
manufacturing of grey fabric from synthetics and cotton yarn. The
plant of the company is located at Kishangarh with a total
installed capacity of 42 Lakh Meter Per Annum for manufacturing of
grey fabrics. In FY2018, the company reported a net profit of
INR0.09 crore on an operating income of INR33.13 crore, as compared
to a net profit of INR0.06 crore on an operating income of INR31
crore in the previous year.
SUN FORGE: ICRA Withdraws B+ Rating on INR14cr Loans
----------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Sun Forge Private Limited at the request of the company and based
on the No Objection Certificate/Closure certificate received from
the banker. However, ICRA does not have information to suggest that
the credit risk has changed since the time the rating was last
reviewed. The Key Rating Drivers, Liquidity Position, Rating
Sensitivities, Key Financial indicators have not been captured as
the rated instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based– 7.00 [ICRA]B+ (Stable); ISSUER NOT
Cash Credit COOPERATING; Withdrawn
Fund Based– 7.00 [ICRA]B+ (Stable); ISSUER NOT
Term Loan COOPERATING; Withdrawn
Rajkot-based Sun Forge Private Limited (SFPL) was incorporated in
2001. It manufactures forged and machined bearing races/rings,
which find application in industries such as automotive, and oil
and gas. The company has an annual installed capacity of producing
12,000 MT of bearing races. The company holds IATF quality
certification from TUV SUD Management Service GmbH, which is a
pre-requirement to supply to reputed clientele. The company also
owns windmill of 2.1 MW capacity in the Kutch region of Gujarat.
The key promoters, Mr. Rajesh Kalaria and Mr. Nathabhai Kalaria,
have extensive experience of around two decades in the forging and
turning industry through their association with SFPL.
SWASTIK ENTERPRISE: ICRA Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Swastik
Enterprise in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D/[ICRA]D: ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 8.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Bank Guarantee 5.00 [ICRA]D; ISSUER NOT COOPERATING;
Rating Continues to remain under
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Incorporated in 1992, Swastik Enterprise (SE) is a proprietorship
firm formed with the main business objective of distribution of
various FMCG and electronic goods. SE is a distributor of HTC
mobile phones for Ahmedabad district and North Gujarat region. The
firm is also a distributor for Spice and Zoko mobile phones as well
as AppsDaily mobile application in the entire state of Gujarat. The
firm is promoted by Mrs. Varsha Jain.
TAPTI AGRO: ICRA Keeps B Debt Rating in Not Cooperating Category
----------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Tapti Agro
Industries in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Proposed Term 14.50 [ICRA]B (Stable) ISSUER NOT
Loan COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
M/s Tapti Agro Industires (TAI) incorporated in 2015 is setting up
a Khandsari (semi-white centrifugal sugar) manufacturing facility
having crushing capacity of 1,500 Tonnes of Cane per Day (TCD) at
Betul District of Madhya Pradesh. The firm plans to commence the
operations of the facility by December 2016.The firm is promoted by
Mr. Rahul Kumar Sao and Mr. Dharmveer Juneja who have significant
experience in the sugar industry through their association with
other firms which are also engaged in sugar manufacturing.
UNIQUE STRUCTURES: ICRA Withdraws B+ Rating on INR24.25cr Loan
--------------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Unique Structures & Towers Limited at the request of the company
and based on the No Objection Certificate/Closure certificate
received from the banker. However, ICRA does not have information
to suggest that the credit risk has changed since the time the
rating was last reviewed. The Key Rating Drivers, Liquidity
Position, Rating Sensitivities, Key Financial indicators have not
been captured as the rated instruments are being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based– 24.25 [ICRA]B+ (Stable); ISSUER NOT
Cash Credit COOPERATING; Withdrawn
Fund Based– 1.39 [ICRA]B+ (Stable); ISSUER NOT
Term Loan COOPERATING; Withdrawn
Non-fund Based 92.70 [ICRA]A4; ISSUER NOT
COOPERATING; Withdrawn
USTL, formerly known as Unique Rolling Mills Private Limited,
started as a steel rerolling mill at Raipur (Chhattisgarh) in 1985.
The company established a galvanised steel structure fabrication
unit in 1995, especially for extra high voltage (EHV) transmission
lines and sub-stations/switchyards. Since then, it has been
regularly supplying galvanised steel structures to
various SPUs and PSUs such as the Power Grid Corporation of India
Limited, the Indian Railways, the Department of Telecommunications,
corporate customers, etc. Apart from manufacturing, USTL has
ventured into the field of turnkey erection of EHV transmission
lines in 2006. The company exited the rolled products business in
FY2014. At present, it is executing turnkey projects in Madhya
Pradesh, Chhattisgarh and Meghalaya. The company's manufacturing
facility is located in Urla Industrial Area, Raipur.
UNIVERSAL FREIGHT: ICRA Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Universal
Freight Management (India) Private Limited in the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]B+ (Stable);
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based 14.30 [ICRA]B+ (Stable) ISSUER NOT
Cash Credit COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Unallocated 10.70 [ICRA]B+ (Stable); ISSUER NOT
COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Universal Freight Management India Private Limited (UFM) was
incorporated in 2009 by Mr Rajeev Bhatnagar and Mr Sheshagiri
Kulkarni as Communicare Infra India Private Limited and
subsequently its name was changed to UFM. The company is primarily
engaged in providing services such as Air and Ocean forwarding,
Multi modal transport, custom clearance, distribution, contract
logistics and warehousing services. The company has five offices in
India at Delhi, Mumbai, Bangalore,
Chennai and Hyderabad. The company also operates three warehouses
which are on lease rental basis at Delhi, Mumbai and Bangalore.
VIDYA EDUCATIONAL: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has retained the ratings for the bank facilities of Sri Vidya
Educational and Charitable Trust in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]D: ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 12.68 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
Long-term– 2.00 [ICRA]D; ISSUER NOT
COOPERATING;
Fund based Rating Continues to remain under
Overdraft 'Issuer Not Cooperating'
Limits Category
Long-term– 0.40 [ICRA]D; ISSUER NOT
COOPERATING;
Unallocated Rating Continues to remain under
'Issuer Not Cooperating'
Category
ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity. The rating action has been taken in accordance with
ICRA's policy in respect of non-cooperation by a rated entity
available at www.icra.in.
Sri Vidya Educational & Charitable Trust was registered in
September 2006 with Mr. R. Thiruvengada Ramanuja Doss, as the
founder Trustee and four other Trustees. The trust has its
registered office in Chennai and the following educational
institutions in Virudhanagar district, Tamil Nadu.
YASH PIGMENTS: ICRA Withdraws B+ Rating on INR30.0cr Loan
---------------------------------------------------------
ICRA has withdrawn the ratings assigned to the bank facilities of
Yash Pigments LLP at the request of the company and based on the No
Objection Certificate (NOC) received from its banker. However, ICRA
does not have information to suggest that the credit risk has
changed since the time the rating was last reviewed. The Key Rating
Drivers, Liquidity Position, Rating Sensitivities, Key financial
indicators have not been captured as the rated instruments are
being withdrawn.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund 30.00 [ICRA]B+ (Stable); ISSUER NOT
Based Limit– COOPERATING; Withdrawn
Cash Credit
Long Term/ 15.00 [ICRA]B+(Stable) ISSUER NOT
Short Term– COOPERATING/[ICRA]A4; ISSUER
NOT
Unallocated COOPERATING; Withdrawn
Yash Pigments LLP is involved in manufacturing and supplying of red
lead (setting and non-setting grade), lead sub oxide, pure lead and
selenium lead alloys. The firm is involved in smelting of lead
ore/lead concentrate/lead battery scrap to produce secondary lead
metal, which is further transformed into pure lead, lead-antimony,
lead-selenium alloy, lead oxides (lead suboxide and red lead). The
name of the firm was changed to Yash Pigments LLP from Yash
Industries effective from April 2018. Yash Industries was the
proprietorship firm under which Mr. Rajesh Bansal conducted the
lead smelting operations in the past.
=================
I N D O N E S I A
=================
GARUDA INDONESIA: Needs $1 Billion to Stay Afloat, Cut Debts
------------------------------------------------------------
Bloomberg News reports that PT Garuda Indonesia needs at least $1
billion of additional funds to cut debt and stay afloat, as the
government says it could give up its majority control of the
troubled flag carrier.
Garuda is currently in talks with creditors to restructure $6.3
billion worth of debt and expects to reach an agreement in the
second quarter of 2022, according to Kartika Wirjoatmodjo, a deputy
minister at Indonesia's State-Owned Enterprises Ministry, Bloomberg
relays. The state-controlled airline has prepared several options
in the debt negotiations, including turning to instruments such as
mandatory convertible bonds or zero-coupon bank loans.
"We are negotiating with many parties with different needs, so
their preferences vary," Bloomberg quotes Wirjoatmodjo, who
oversees state transport companies, as saying on Nov. 1. "I have to
emphasize that the government is not looking to bankrupt Garuda.
What we are looking for is debt settlement either outside court
proceedings or through court proceedings."
Once a debt agreement is in place, Garuda will start looking for
ways to raise $1 billion to repay its liabilities and for working
capital, Bloomberg says. With such high funding needs, the
government is now choosing to be realistic and open to the
possibility of private investors becoming majority owners.
"We are reaching out to major hub players," he said. The airline
must slash its debt by 70%-80% in order to survive, he said.
The company's latest available financial reports show that Garuda
had negative equity of $2.8 billion at the end of June, Bloomberg
notes.
About Garuda Indonesia
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/-- currently
has a fleet of about 77 aircraft offering service to some 27
domestic and 33 international destinations. Under its Citilink
brand, it serves 10 other domestic routes. Garuda also ships about
200,000 tons of cargo a month and operates a computerized tracking
system.
As reported in the Troubled Company Reporter-Asia Pacific on July
21, 2021, Nikkei Asia said Garuda Indonesia posted a net loss of
$2.4 billion in 2020, with its auditor raising concerns over the
continuity of the Southeast Asian country's flagship airline.
The net loss is Garuda's biggest since at least 2005, the oldest
available data on Quick-Factset, and marks a staggering increase
from the $38.9 million loss it reported the previous year, Nikkei
Asia noted.
LIPPO MALLS: Fitch Affirms 'B+' LT IDR, Outlook Negative
--------------------------------------------------------
Fitch Ratings has affirmed Lippo Malls Indonesia Retail Trust's
(LMIRT) Long-Term Issuer Default Rating (IDR) at 'B+' with a
Negative Outlook. LMIRT's senior unsecured notes due 2024 and 2026
issued by its wholly owned subsidiary, LMIRT Capital Pte. Ltd.,
have also been affirmed at 'B+' with a Recovery Rating of 'RR4'.
LMIRT's rating reflects its shopping-mall portfolio, the largest in
Indonesia, with a value of SGD1.8 billion at end-September 2021 and
net lettable area (NLA) of 960,000 sq m. Fitch expects LMIRT's
EBITDA to improve to 60% of 2019's SGD171 million in 2021 and 70%
in 2022 from 40% in 2020, supported by a gradual portfolio
recovery.
The Negative Outlook reflects LMIRT's limited rating headroom,
especially considering Indonesia's vaccination rates. Fitch
estimates LMIRT's FFO fixed charge will improve to 1.2x in 2022
from 1.0x in 2021. However, the reimposition of lockdown measures
could derail LMIRT's recovery in light of the low vaccination rates
outside Jakarta, which accounts for around half of total NLA.
Higher vaccination rates that reduce the risk of mall closures and
result in stable operations after reopening, reflected in increased
occupancy, may lead to an Outlook revision to Stable.
KEY RATING DRIVERS
Vaccination Key to Recovery: Indonesia's slow vaccination progress
highlights the risks to LMIRT's recovery. Half of LMIRT's portfolio
is in Jakarta, where more than 70% of its population has been fully
vaccinated. However, the rest of its portfolio is spread across
provinces where the average vaccination rate is 22%, versus the
national average of around 25%. Fitch does not expect large-scale,
nationwide restrictions to recur in Fitch's base case, but the risk
of more localised measures outside of Jakarta is captured in the
Negative Outlook.
Malls Open, Rebates to Ease: Fitch expects LMIRT's net property
income (NPI), excluding Lippo Mall Puri, to improve to SGD20
million in 4Q21 from SGD9 million in 3Q21, following the reopening
of its malls since August 2021. The estimate is in line with
LMIRT's 1Q21 NPI as the operating environment is broadly similar,
with all of LMIRT's malls open and social activities allowed with
limited restrictions.
Traffic improved to around 50% of the pre-pandemic level in October
2021 from 30% in 3Q21, which should allow LMIRT to reduce rebates
and improve collection rates in 4Q21. LMIRT believes it will no
longer need to provide rental rebates by December compared with
around 20% currently, while collection has improved to 90% in
September 2021 from around 80% in 1H21.
Fall in Occupancy: LMIRT's operations have not been stable, evident
from the drop in occupancy by around 10% compared with the market
average of 4% even though average rental reversion was around 3% in
March 2020-September 2021. LMIRT attributed the fall to the exit of
anchor tenants such as Hypermart and Matahari Department Stores
from its less strategic malls, and asset enhancement initiatives in
a few of its older properties.
Improvement in the Covid-19 situation in Indonesia should help
LMIRT to arrest its falling occupancy, but the inability to do so
in the next few quarters may indicate unaddressed weaknesses in its
portfolio, which could pressure its rating.
Guaranteed NPI: Fitch forecasts SGD34 million in annual guaranteed
NPI for Lippo Mall Puri from LMIRT's majority unitholder, PT Lippo
Karawaci TBK (LPKR, B-/Stable), until 2024. The guaranteed NPI is
about 30% of LMIRT's total NPI. Fitch expects Lippo Mall Puri's
underlying NPI to weaken due to the pandemic and its shorter
operating life than the rest of the trust's portfolio. Fitch thinks
LPKR has the financial capacity to guarantee the rent, but risks
may arise after 2022, depending on its ability to raise contracted
sales and operating cash flow or sell assets.
Ring-Fenced from Sponsor: Fitch rates LMIRT on a standalone basis
due to robust regulatory ring-fencing from LPKR. LPKR has economic
control over LMIRT through its 58.4% stake in the trust's units,
and 100% ownership of the REIT manager, but regulation prevents
LPKR from having majority representation on the REIT manager's
board. As a Singapore REIT, it is also subject to restrictions on
gearing ratio, development activities, and requires minority
shareholders to approve related-party transactions. These rules
support Fitch's view of rating LMIRT independently from LPKR.
Perpetual Securities Treated as Equity: Fitch treats LMIRT's SGD260
million in perpetual securities, issued in 2016 and 2017, as 100%
equity due to strong going-concern and gone-concern loss-absorption
features. This also factors in LMIRT's intention to maintain the
securities as a permanent part of its capital structure by
replacing them at their next call date with similar instruments or
common equity. This was demonstrated in September 2021 when it
reset SGD140 million in perpetual securities at their first call
date.
DERIVATION SUMMARY
PT Pakuwon Jati Tbk (PWON, BB/Stable) is rated two notches higher
than LMIRT due to its stronger investment-property portfolio, which
has larger and better-quality retail malls with higher occupancy
and rent per square foot. Its projects also comprise mixed
developments, with offices and hotels, which attract more traffic
than standalone properties. This, together with PWON's stronger
financial profile, which stems from its conservative approach to
property development and expansion, more than offsets its
development-property risks compared with LMIRT.
Ronesans Gayrimenkul Yatirim A.S. (RGY; B/Stable), a Turkish
property company with 12 destination shopping centres across seven
of Turkey's largest cities, is rated lower than LMIRT due to its
smaller and less-diversified portfolio. It also has higher currency
risk. Both have predominantly foreign-currency debt against
local-currency cash flow. However, Fitch believes currency mismatch
is more manageable for LMIRT, as the Indonesian rupiah has been
more stable than the Turkish lira amid the challenges posed by the
pandemic. The lira has depreciated by more than 30% in 2020 to date
compared with around 4% for the rupiah.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Meaningful NPI recovery in 4Q21 to 1Q21 level, contributing to
2021 NPI, including Lippo Malls Puri, of SGD104 million with
sustained improvement through 2022 with total NPI of SGD122
million;
-- Dividends of SGD23 million in 2021 and SGD24 million in 2022;
-- Annual capex of SGD15 million-20 million;
-- No large scale, nationwide lockdown, although recovery will be
slow in 2022 due to the impact of localised measures where
vaccination rates are low.
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- The Outlook may be revised to Stable if LMIRT maintains FFO
fixed charge above 1.2x on a sustained basis.
Factor that could, individually or collectively, lead to negative
rating action/downgrade:
-- FFO fixed charge falls below 1.2x 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: LMIRT's liquidity is supported by Fitch's
estimate of SGD137 million in cash balance at end-2021 and SGD23
million in committed undrawn bank lines to cover negative free cash
flow of SGD24 million in 2022 and SGD7 million in 2023, and SGD67.5
million in term loans due 2022. LMIRT's financial flexibility is
also supported by its ability to tap banks and capital markets,
even during the pandemic, and a pool of unsecured assets. It raised
USD200 million via an unsecured note issuance in February 2021,
which, along with Fitch's expectation of a gradual improvement in
operating conditions, should support its ability to meet its
obligations.
LMIRT is likely to breach the interest coverage covenant of 2.5x on
its bank loan by end-December 2021, and is working to seek waivers
for the next 12 months from its lenders. Fitch thinks LMIRT will be
able to secure these waivers given its record of obtaining similar
waivers last year and ratio having been consistently higher than
the minimum 1.25x required during the waiver period up to
end-September 2021.
ISSUER PROFILE
LMIRT is a Singapore-listed REIT with a portfolio of retail assets
in Indonesia.
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.
MEDCO ENERGI: Fitch Assigns B+ Rating to Proposed Senior Notes
--------------------------------------------------------------
Fitch Ratings has assigned PT Medco Energi Internasional Tbk's
(Medco; B+/Stable) proposed senior notes issued by its wholly owned
subsidiary, Medco Laurel Tree Pte. Ltd., a rating of 'B+' and a
Recovery Rating of 'RR4'.
The notes, which are guaranteed by Medco and some of its key
subsidiaries, are rated at the same level as Medco's Issuer Default
Rating (IDR), as the notes constitute its direct, unsubordinated
and unsecured obligations. Medco will use the proceeds to complete
its planned acquisitions or to refinance some of its existing US
dollar notes coming due in 2025 and 2026.
Fitch continues to treat any potential acquisitions/investments as
event risks given the uncertainties relating to them, and would
reassess impact on Medco's credit profile upon conclusion of
acquisitions. Medco has a record of credit accretive acquisitions
that have improved its long-term financial and operating profile.
Medco's rating factors in its larger scale, low-cost position,
adequate credit metrics and favourable earnings mix via fixed-price
contracts relative to most 'B' category upstream oil and gas (O&G)
producers. Medco also benefits from its ability to defer capex
given a high proportion of developed reserves.
KEY RATING DRIVERS
Acquisitions Treated as Event Risk: Fitch's rating case assumes
Medco's proposed notes would be fully utilised to refinance some of
its 2025 and 2026 US dollar notes. As a result, Fitch does not
expect any material changes to Medco's gross debt-based leverage
from the proposed notes. If Medco utilises the bond proceeds for
acquisitions Fitch will assess the impact of the acquisition, along
with its proposed funding strategy.
Financial Profile Adequate for Rating: In the absence of
acquisitions Fitch expects Medco's leverage, as measured by net
debt/EBITDA, to improve to around 3.1x in 2021 (2020: 4.8x), and
remain at close to 3x till 2025. The improvement reflects the
current strong crude prices and Fitch's expectation of a moderation
in prices in 2022. Medco also expects to receive USD141 million in
2021 from the sale of a stake in an associate. Fitch excludes
Medco's fully owned subsidiary, PT Medco Power Indonesia (MPI),
when calculating leverage.
Contracted Earnings: Medco's earnings are less sensitive to oil
price changes than many upstream O&G peers, with about USD200
million of its expected EBITDA in 2021 being derived from
fixed-price minimum take-or-pay volumes. Around a third of Medco's
production is gas sold via long-term fixed-price take-or-pay
contracts.
Reserve Profile Helps Capex Flexibility: Fitch also thinks that
Medco's financial flexibility is boosted by its relatively high
proportion of developed reserves, which would allow around five
years of production with minimal capex. This enabled the company to
cut its O&G capex by over 40% to USD144 million in 2020 compared to
its pre-pandemic plans. Medco's proved reserves (1P) of 206 million
barrels of oil equivalent (mmboe) at end-June 2021 result in a
reserve life of about six years. Medco's proved reserves could
increase meaningfully, if some of its production sharing contracts
are extended.
Strong Operating Profile: Medco's operating profile benefits from
low lifting costs of USD9-10 per barrel of oil equivalent (boe) and
a production base that is largely in Indonesia with some
international presence. Its production is derived from 16 oil and
gas fields, none of which contribute more than 20% to output,
lowering its operating risks.
Production to Recover: Fitch expects Medco's production to fall to
around 88 thousand barrels of oil equivalent per day (mboepd) in
2021 (2020: 93mboepd) as a result of maintenance, unplanned
downtime in some of its fields and weak gas demand in the 9M21.
However, Fitch expects production to recover from 4Q21, with
improving demand.
Power Investment Neutral: Fitch considers the risk dynamics of MPI
to be neutral to Medco's credit profile, as its investment in the
power company falls outside the restricted group structure defined
in Medco's bond documentation. The documents limit Medco's
investments outside the restricted group to USD300 million, most of
which has been utilised. The structure limits cash outflow from
Medco to MPI and other investments outside the restricted group.
There are no cross-default clauses linking MPI's debt to Medco.
DERIVATION SUMMARY
Medco's ratings reflect its operating profile, which compares well
against 'B' rated exploration and production peers in terms of
scale and the earnings mix generated through fixed-price
take-or-pay contracts.
Canacol Energy Ltd.'s (BB-/Positive) rating reflects the long-term,
fixed-price take-or-pay gas sales contracts, which account for
around 75% of its sales volumes. In addition, Fitch expects it to
turn to a net cash position by 2024. As a result, its ratings are
higher than most 'B' rated oil and gas producers, including Medco,
despite a smaller production scale and moderate P1 reserve life of
six years. The Positive Outlook on the rating reflects Fitch's
expectation that Canacol's production scale would increase to
around 40mboepd by 2022.
Fitch expects Medco's credit profile to be comparable to that of
GeoPark Limited (B+/Stable), as they have comparable forecast
leverage and reserve life. GeoPark's ratings are constrained by its
small scale of production of 40mboepd, low reserve life and limited
operational diversification. Frontera Energy Corporation's
(B/Stable) ratings reflect its smaller production scale of around
45mboepd, somewhat higher reserve life of 7.6 years and higher
production costs than Medco. Medco's higher ratings reflect its
stronger operating profile.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Brent prices of USD55 a barrel in 2022 and USD53 a barrel
thereafter, as per Fitch's oil and gas price deck. Gas prices
in line with the fixed price contracts where applicable.
-- Total production volume in 2021 to decline to 88mboepd, and
recover to 93mboepd in 2022 and to 98mboepd in 2023;
-- Cash production costs of less than USD10 per boe;
-- Annual capex between USD200 million and USD250 million over
the next five years, which is 20% higher than the company's
estimates over the forecast horizon until 2025.
KEY RECOVERY RATING ASSUMPTIONS
The recovery analysis assumes that Medco would be reorganised as a
going concern in bankruptcy rather than liquidated.
Fitch assumes a 10% administrative claim.
Medco's going-concern EBITDA, excluding MPI, is based on the
average EBITDA Fitch expects over 2021 to 2024, which is stressed
by 30% to reflect the risks associated with oil-price volatility,
potential challenges in maintaining output from its maturing fields
and other factors.
An enterprise value multiple of 5x is used to calculate a
post-reorganisation valuation and reflects a mid-cycle multiple for
oil and gas, metals and mining companies globally, which is higher
than the observed lowest multiple of 4.5x. The higher multiple
reflects that a sizeable proportion of Medco's production volume
stems from long-term fixed-price and indexed take-or-pay gas
contracts, which provide more cash flow visibility across economic
cycles than the average global upstream oil and gas production
company.
Fitch assumes prior-ranking debt of USD189 million will be repaid
before Medco's senior unsecured creditors, including investors in
its US dollar bonds. Prior-ranking debt includes project-finance
debt at non-guarantor subsidiaries, PT Medco E&P Tomori Sulawesi
and PT Medco E&P Malaka.
The payment waterfall results in a recovery rate corresponding to a
'RR2' Recovery Rating for the unsecured notes. However, Fitch rates
the senior unsecured bonds at 'B+'/'RR4' because Indonesia falls
into Group D of creditor friendliness under Fitch's
Country-Specific Treatment of Recovery Ratings Criteria, and the
Recovery Rating on instruments of issuers with assets in this group
are subject to a cap of 'RR4'.
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- Leverage (net debt/EBITDA excluding MPI) sustained below 2.5x,
provided Medco is able to maintain production of around
100mboepd and a proved developed reserve life of 6 years.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- Leverage above 3.5x for a sustained period.
-- Significant weakening in Medco's operating-risk profile,
including a material fall in production and weakening of its
proved reserve life to less than seven years or significant
weakening in the mix of earnings from fixed-price gas sales.
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
Strong Liquidity: At end-June 2021, Medco, excluding MPI, had
unrestricted cash of USD306 million compared with debt maturities
of USD61 million in 2H21. Its liquidity profile is comfortable with
debt maturities of between USD100 million and USD200 million per
year until 2024. It has US dollar bonds of between USD500 million
and USD650 million falling due each year from 2025 to 2027. Medco
also has a recent history of refinancing bond maturities well ahead
of schedule. Fitch expects Medco to broadly generate positive free
cash flows, and have the flexibility to curtail capex meaningfully
if needed, which would help its liquidity profile.
ISSUER PROFILE
Medco is an Indonesian upstream oil and gas company, with some
international presence. The company produces about 90mboepd of
O&G.
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.
MEDCO ENERGI: Moody's Affirms B1 CFR, Rates USD Sr. Unsec. Notes B1
-------------------------------------------------------------------
Moody's Investors Service has affirmed the B1 corporate family
rating of Medco Energi Internasional Tbk (P.T.) (Medco).
Moody's has also affirmed the B1 ratings on the backed senior
unsecured bonds issued by Medco Platinum Road Pte. Ltd., Medco Oak
Tree Pte. Ltd. and Medco Bell Pte. Ltd. These bonds are
unconditionally and irrevocably guaranteed by Medco.
At the same time, Moody's Investors Service has assigned a B1
rating to the proposed USD-denominated backed senior unsecured
notes to be issued by Medco Laurel Tree Pte. Ltd., a wholly-owned
subsidiary of Medco. The proposed notes will be irrevocably and
unconditionally guaranteed by Medco and some of its subsidiaries.
The bond proceeds will be initially kept in an escrow account and
will ultimately be used either to refinance existing indebtedness
or to fund acquisition or investments. The notes will be used to
repay existing indebtedness at Medco's restricted group if Medco
does not enter into an acquisition agreement prior to September 30,
2022.
The rating outlook is negative.
"The rating affirmation reflects our expectation that supportive
oil and gas prices will drive an improvement in Medco's credit
metrics toward levels appropriate for its B1 rating," says Hui Ting
Sim, a Moody's Analyst.
"The negative rating outlook reflects the uncertainty associated
with Medco's growth plans and consequently the potential that its
credit metrics will deteriorate further than our expectation over
the next 12-18 months," adds Sim.
RATINGS RATIONALE
Moody's estimates that the company's debt/EBITDA and adjusted
retained cash flow (RCF)/debt will be at 3.5x-4.0x and 10%-15%,
respectively, over the next 12-18 months if the proposed bond is
used for refinancing and based on Moody's medium-term Brent crude
price assumption of $50-$70 per barrel. Moody's calculates Medco's
metrics by excluding Medco Power and netting off Medco's cash in
escrow earmarked for debt repayment from its debt calculations.
Moody's forecasts Medco's production will increase to slightly
above 100 thousand barrels of oil equivalent per day (kboepd) in
2022 from 94 kboepd in the first half of 2021 as demand for gas
improves and the company increases capital spending.
But the proposed bond by Medco could also be used to fund
acquisitions or investments, though the company's plans are unclear
at this stage. A debt-funded acquisition could weaken the company's
credit metrics beyond its downgrade thresholds. Moody's will assess
the implications of Medco's investments on its financial and
business profile when there is more clarity on its acquisition
targets.
While the proposed bond is indicative of Medco's acquisition growth
appetite, it also demonstrates the company's proactive liquidity
management. The company has a track record of refinancing its debt
maturities well in advance, increasing the average weighted
maturity profile of its debt.
Medco has very good liquidity over the next 12-18 months. As of
June 30, 2021, there were unrestricted cash and cash equivalents of
$253 million, cash in escrow for debt and interest repayment of
$116 million and undrawn credit facilities of close to $500 million
at Medco excluding Medco Power. Moody's expects the company's cash
holdings, cash flow from operations of around $370 million and
asset divestment of around $100 million to be sufficient to address
its debt maturities of around $180 million and spending of close to
$300 million over the next 18 months.
Medco's B1 rating reflects its sizeable production scale and
reserves, high revenue visibility from its fixed-price gas sales
agreements and very good liquidity.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS
Medco has a highly negative exposure to environmental risk
primarily because of its high exposure to carbon transition risk,
physical climate risk and natural capital risk. Upstream companies
are facing stronger pressure over time as decarbonization efforts
and the transition towards cleaner energy continues. But Medco's
risk exposure is partially tempered by the high proportion of gas
in its production mix at around 60%. The company has a sizeable
power arm with renewable operations that are not within the
restricted group of its US dollar bonds. However, at present, most
of Medco's earnings are still generated through its oil and gas
operations, reflecting its elevated exposure to environmental
risk.
Medco has a highly negative exposure to social risk, because of
high responsible production risks inherent to the nature of
upstream operations and the need to develop relationships with
local communities. Medco's supply chain is also exposed to a degree
of regulatory unpredictability, as demonstrated by the evolving
policies on the pricing of natural gas sold to certain sectors
within Indonesia.
In terms of governance factors, the ratings consider Medco's growth
appetite, as shown by its history of debt-funded acquisitions,
complex organizational structure and concentrated ownership. But
this is balanced by the company's track record of proactive
financial management to refinance debt maturities in advance and
increase the average weighted maturity profile of its debt.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of Medco's rating is unlikely over the next 12-18
months, given the negative outlook.
A change in outlook to stable from negative will require greater
clarity on its growth plans, a sustained improvement in its credit
metrics and very good liquidity. Specific credit metrics that could
support the outlook returning to stable include adjusted net
debt/EBITDA below 4.0x, adjusted RCF/net debt above 10%, and
adjusted EBITDA/interest expense above 3.5x.
Downward pressure on Medco's rating could build if the company's
credit metrics remain weak for its rating level or its liquidity
deteriorates. Debt-funded acquisitions could also exert downward
pressure on the company's rating.
Quantitative metrics indicative of downward pressure include
adjusted net debt/EBITDA rising above 4.0x, adjusted RCF/adjusted
net debt falling below 10%, or adjusted EBITDA/interest expense
falling below 3.5x.
The principal methodology used in these ratings was Independent
Exploration and Production published in August 2021.
Established in 1980 and headquartered in Jakarta, Medco Energi
Internasional Tbk (P.T.) is a Southeast Asian integrated energy and
natural resource company listed in Indonesia with three key
business segments, oil and gas, power and mining.
MEDCO ENERGI: S&P Puts 'B+' LT Issue Rating on 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 Medco Laurel Tree Pte. Ltd., a wholly owned indirect subsidiary
of PT Medco Energi Internasional Tbk. (Medco; B+/Negative/--). The
proposed notes will be unconditionally and irrevocably guaranteed
by Indonesia-based Medco.
S&P said, "The rating on the notes is subject to our review of the
final issuance documentation. The bond proceeds will be placed into
an escrow account, with conditions on drawdown for either
acquisition or refinancing Medco's current indebtedness. If the
proceeds have not been used for either of the above before Sept.
30, 2022, Medco will apply the proceeds toward refinancing.
"Our rating on Medco reflects the company's midsize production
scale and adequate reserves; cash-flow visibility, thanks to a high
proportion of gas sold at fixed prices; adequate liquidity buffer;
and manageable debt-servicing requirements over the next 12-24
months. The rating also reflects Medco's investment appetite to
sustain production at its mature assets, pursue inorganic growth
opportunities, and develop its highly leveraged power business.
Some regulatory risk in Indonesia, where most of the company's
hydrocarbon production is based, also weighs on its
creditworthiness.
"We rate the notes 'B+', the same as the issuer credit rating on
Medco, because Medco primarily operates in Indonesia, a
jurisdiction where we believe the priority of claims in a
theoretical bankruptcy is highly uncertain.
"The negative outlook on Medco reflects the company's operating
performance, which was weaker than we previously expected. It also
reflects the prospect that FFO-to-debt ratio will remain below 12%
if production does not recover to comfortably above 100 thousand
barrels of oil equivalent per day (kboe/d) under our current
hydrocarbon price assumptions.
"We anticipate that Medco's production will recover to 98
kboe/d-103 kboe/d in 2022, which should support a recovery in
Medco's FFO-to-debt ratio to 12%-14% for 2022, albeit this remains
uncertain, with a limited buffer for the ratio to rise higher than
12%."
PLAZA INDONESIA: Moody's Assigns First Time Ba2 Corp Family Rating
------------------------------------------------------------------
Moody's Investors Service has assigned a corporate family rating of
Ba2 to Plaza Indonesia Investama (P.T.) (PII), the special purpose
company of Dana Investasi Real Estat (DIRE) Simas Plaza Indonesia,
a real estate investment fund in Indonesia.
At the same time, Moody's has assigned a senior unsecured rating of
Ba2 to the proposed bond to be issued by PII, which will be
guaranteed by PII's subsidiary, PT Sarana Mitra Investama.
The outlook on all ratings is stable.
This is the first time Moody's has assigned ratings to PII.
PII plans to use net proceeds from the proposed bond issue to
refinance existing indebtedness and for general corporate
purposes.
RATINGS RATIONALE
"PII's Ba2 corporate family rating reflects its portfolio of
high-quality investment properties that are strategically located
in Jakarta's central business district, and are diversified across
multiple asset classes of retail, office and hotel. However, there
is a lack of geographic diversification given three of the
company's four properties are in a single location," says Jacintha
Poh, a Moody's Vice President and Senior Credit Officer.
"The operating performance of PII's investment properties has been
stable through various economic downturns, but their operations
have been severely hurt by the coronavirus pandemic. We do not
expect PII's revenue and credit metrics to recover to the
pre-pandemic levels through 2023," adds Poh.
The stable outlook reflects Moody's expectation that PII's
operating performance will gradually recover over 2021-23 and the
company will successfully refinance its $215 million syndicated
loan maturing in June 2022.
PII's asset portfolio comprises Plaza Indonesia Shopping Center,
The Plaza Office Tower, Grand Hyatt Jakarta hotel and fX Sudirman
mall. The first three properties make up the Plaza Indonesia
complex, which is located at the heart of Jakarta's central
business district and have direct access to the city's Mass Rapid
Transit, which commenced operations in 2018.
In the first half (1H) of 2021, Plaza Indonesia Shopping Center
accounted for 49% of PII's total revenue while Grand Hyatt Jakarta
and The Plaza Office Tower contributed 22% and 21%, respectively.
The remaining 8% came from fX Sudirman. Over 2022-23, Moody's
expects PII's revenue breakdown to return to the pre-pandemic
levels, with Plaza Indonesia Shopping Center contributing around
45%, Grand Hyatt Jakarta around 30% and The Plaza Office Tower
around 15%, and the remainder coming from fX Sudirman.
The operational disruptions caused by the pandemic in 2020 severely
hurt PII's revenue. Grand Hyatt Jakarta's revenue dropped the most
at around 70%, while revenue at PII's retail malls and office tower
fell around 25% and 10%, respectively. The decline in revenue at
retail malls would have been larger if the rent relief provided to
tenants in 2020 had been recorded in the same year instead of being
amortized over the tenants' lease terms.
Moody's expects PII's revenue to gradually recover but remain
weaker than pre-pandemic levels over the next three years.
Nonetheless, the company's margin will improve, helped by its cost
management initiatives such as restructuring its workforce,
increasing productivity, and negotiating with the hotel operator to
reduce management costs.
PII's leverage, as measured by Moody's adjusted net debt/EBITDA,
will improve to 4.4x in 2022 and 3.9x in 2023. However, its Moody's
adjusted EBITDA interest coverage will weaken to 3.5x in 2022 and
4.1x in 2023 following the refinancing of its secured term facility
with the proposed US dollar bond, which will be unsecured, has a
longer tenor and a higher coupon rate. In 2020, PII had an adjusted
net debt/EBITDA of 4.5x and EBITDA interest coverage of 5.3x.
Moody's expect PII's liquidity to be very good after the issuance
of its proposed US dollar bond, the net proceeds of which will be
used for refinancing of all its existing indebtedness. As of June
30, 2021, PII had cash and cash equivalents of IDR796 billion.
Moody's forecasts that the company will generate operating cash
flow of IDR625 billion, which, together with its cash and cash
equivalents, will be sufficient to cover capital spending of IDR220
billion and dividend payments of IDR475 billion.
With respect to environmental, social and governance risks, Moody's
has considered the private company status of PII, which results in
limited corporate transparency. However, PII is a wholly-owned
subsidiary of DIRE Simas Plaza Indonesia, which is publicly listed
and regulated by Financial Services Authority of Indonesia.
PII is also exposed to social risk associated to the pandemic
because movement restriction measures to curb the virus contagion
had severely hurt operating performance of PII's investment
properties in 2020. The company's Ba2 rating incorporates Moody's
expectation that operating performance will gradually recover but
not to pre-pandemic levels through 2023.
PII's proposed US dollar bond is not exposed to either legal or
structural subordination risk; hence, the senior unsecured bond
rating is aligned with the company's Ba2 corporate family rating.
The proposed bond will be the only debt within PII's capital
structure. Although the bond is not guaranteed by PT Plaza
Indonesia Realty Tbk, the total liabilities at PT Plaza Indonesia
Realty Tbk are small; hence, the bond is not exposed to structural
subordination risk. PT Plaza Indonesia Realty Tbk is a 97%-owned
operating company that holds the majority of PII's consolidated
assets and accounts for over 90% of PII's consolidated revenue.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
PII's rating is unlikely to be upgraded over the next 12-18 months
given the company's asset concentration risk and Moody's
expectation of a prolonged recovery in its operating performance,
particularly at its hotel business.
Moody's could downgrade PII's ratings if the company fails to
refinance its $215 million syndicated loan maturity in a timely
manner; a further deterioration occurs in the operating
environment, leading to higher vacancy levels and declining
operating cash flow or falling asset valuations; or the company's
credit metrics weaken, with its Moody's adjusted net debt/EBITDA
staying above 5.0x and Moody's adjusted EBITDA/interest expense
below 3.5x.
Moody's could also downgrade PII's senior unsecured bond rating to
reflect legal subordination risk if the company increases secured
debt significantly, such that the proportion of secured debt stays
higher than unsecured debt on a sustained basis. The senior
unsecured bond rating could also be downgraded to reflect
structural subordination risk if subsidiaries that do not guarantee
the bond account for most of PII's earnings and borrowings.
The principal methodology used in these ratings was REITs and Other
Commercial Real Estate Firms Methodology published in July 2021.
Plaza Indonesia Investama (P.T.) (PII) is the special purpose
company of Dana Investasi Real Estat (DIRE) Simas Plaza Indonesia,
a real estate investment fund in Indonesia. On behalf of the fund,
PII holds an asset portfolio comprising two shopping malls, one
office tower and a hotel in Jakarta, through its ownership of a
96.61%-stake in PT Plaza Indonesia Realty Tbk and a 99.99%-stake in
PT Sarana Mitra Investama.
DIRE Simas Plaza Indonesia was listed on the Indonesian Stock
Exchange on July 4, 2019. The unitholders are Bumi Serpong Damai
TBK (P.T.) (Ba3 stable), PT Indonesian Paradise Property Tbk,
Hankyu Hanshin Properties JOIN LLC and Rosano Barack.
=====================
N E W Z E A L A N D
=====================
CRUSADERS BUILDING: Court to Hear Wind-Up Petition on Nov. 25
-------------------------------------------------------------
A petition to wind up the operations of Crusaders Building
Development Limited will be heard before the High Court at Auckland
on Nov. 25, 2021, at 10:00 a.m.
Bo Si Limited filed the petition against the company on Oct. 14,
2021.
The Petitioner's solicitors are:
Ayleath Foote
Duncan Cotterill
Level 2, Duncan Cotterill Plaza
148 Victoria Street
Christchurch 8013
New Zealand
LIDDLE BUILDERS: Creditors' Proofs of Debt Due Nov. 30
------------------------------------------------------
Creditors of Liddle Builders & Construction Limited, which is in
interim liquidation, are required to file their proofs of debt by
Nov. 30, 2021, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Oct. 26, 2021.
The company's interim liquidator is:
Heath Gair
Palliser Insolvency
PO Box 57124
Mana, Porirua
New Zealand
MANAWATU TRADING: Creditors' Proofs of Debt Due Nov. 6
------------------------------------------------------
Creditors of Manawatu Trading Centre (2017) Limited, which is in
liquidation, are required to file their proofs of debt by Nov. 6,
2021, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on Oct. 28, 2021.
The company's liquidators are:
Richard Nacey
Wendy Somerville
PwC Wellington
PO Box 243
Wellington 6140
New Zealand
=================
S I N G A P O R E
=================
AESTHETICS HOLDINGS: Creditors' Proofs of Debt Due Nov. 29
----------------------------------------------------------
Creditors of Aesthetics Holdings Pte Ltd, which is in voluntary
liquidation, are required to file their proofs of debt by Nov. 29,
2021, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on Oct. 29, 2021.
The company's liquidators are:
Seah Chee Wei
Rock Stevenson
c/o 60 Paya Lebar Road
#08-05 Paya Lebar Square
Singapore 409051
Email: rickseah@rockstevenson.com
DRX GROUP: Creditors' Proofs of Debt Due Nov. 29
------------------------------------------------
Creditors of The Drx Group Pte Ltd, which is in voluntary
liquidation, are required to file their proofs of debt by Nov. 29,
2021, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on Oct. 22, 2021.
The company's liquidators are:
Seah Chee Wei
Rock Stevenson
c/o 60 Paya Lebar Road
#08-05 Paya Lebar Square
Singapore 409051
Email: rickseah@rockstevenson.com
FR MEDIA: Chee FM Appointed as Provisional Liquidator
-----------------------------------------------------
Chee Fung Mei of Chee FM & Associates on Oct. 22, 2021, was
appointed as provisional liquidator of FR Media Pte. Ltd.
The provisional liquidator can be reached at:
Chee Fung Mei
Chee FM & Associates
138 Cecil Street
#05-03 Cecil Court
Singapore 069058
GOLDIN FUND: Court to Hear Wind-Up Petition on Nov. 12
------------------------------------------------------
A petition to wind up the operations of Goldin Fund Pte Ltd will be
heard before the High Court of Singapore on Nov. 12, 2021, at 10:00
a.m.
Bank of China Limited, Shenzhen Branch filed the petition against
the company on Oct. 21, 2021.
The Petitioner's solicitors are:
Dentons Rodyk & Davidson LLP
80 Raffles Place
#33-00 UOB Plaza 1
Singapore 048624
RIGVEDA MARITIME: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Singapore entered an order on Oct. 22, 2021, to
wind up the operations of Rigveda Maritime Pte. Ltd.
Norwester Maritime Ltd filed the petition against the company.
The company's liquidators are:
Mr. Don Ho Mun-Tuke and
Mr. David Ho Chjuen Meng
c/o DHA+ PAC
63 Market Street
#05-01A, Bank Of Singapore Centre,
Singapore 048942
===============
T H A I L A N D
===============
THAI AIRWAYS: To Sell 42 Jets, Cut Workforce to Reduce Costs
------------------------------------------------------------
Reuters reports that Thai Airways International Pcl will sell 42
planes and cut nearly a third of its workforce as part of a plan to
slim down the fleet and cut costs, the head of its restructuring
committee said on Nov. 1.
Reuters says the airline, which was in difficulty well before the
pandemic struck, is going through a bankruptcy-protected
restructuring.
Piyasvasti Amranand, who is leading the effort, said that the
planes being sold are old and not energy efficient. He said 16 jets
on lease will be returned.
After the sale, the airline will have 58 planes across four types,
Reuters relays.
Thai Airways has been losing money nearly every year since 2012.
According to Reuters, Piyasvasti said the airline planned to add
more flights especially from Europe over the next few months as
travel recovers.
On Nov. 1, the Thai government reopened the country for
quarantine-free travel for vaccinated tourists.
Reuters adds that Piyasvasti said that Thai Airways will reduce the
number of workers from 21,300 to 14,500 by December 2022.
To help with cash flow, the airline will conclude a THB25 billion
($749.18 million) credit agreement with financial institutions by
next year and is in talks with the government for an additional
THB25 billion, he said, Reuters relays.
The airline booked a profit of THB11.1 billion ($332.63 million) in
the six months ending in June from a loss of THBB28 billion during
the corresponding period a year earlier after reducing expenses,
Reuters discloses.
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.
*********
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
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Information contained herein is obtained from sources believed
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thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000.
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