/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/211208.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, December 8, 2021, Vol. 24, No. 239 Headlines A U S T R A L I A HUB FURNITURE: First Creditors' Meeting Set for Dec. 14 NCELESTE PTY: First Creditors' Meeting Set for Dec. 15 C H I N A CHINA AOYUAN: Fails to Meet US$651 Million of Payment Demands CHINA AOYUAN: S&P Lowers ICR to 'SD' on Nonpayment of Borrowings CHINA EVERGRANDE: Share Price Up as Debt Restructuring Nears CHONGQING HECHUAN: Fitch Lowers LT IDRs to 'BB', Outlook Stable KAISA GROUP: Creditors Offer Forbearance to Avoid Bond Default KAISA GROUP: Sells HK Office for Debt Repayment RISESUN REAL: Moody's Lowers CFR to B3, Outlook Remains Negative YANGO GROUP: Parent Gets One-Year Bond Payment Extension I N D I A AGRIMONY TRADEX: CARE Keeps D Debt Ratings in Not Cooperating BALAJI INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating BANSAL RICE: CARE Keeps D Debt Rating in Not Cooperating Category BHARATI BIO: CARE Keeps D Debt Rating in Not Cooperating Category CCCL INFRASTRUCTURE: CARE Keeps D Debt Rating in Not Cooperating COSMOS INFRA: CARE Lowers Rating on INR72cr LT Loan to C DHARWAD METALLICS: CARE Keeps D Debt Rating in Not Cooperating GRD FOODS: CARE Keeps D Debt Rating in Not Cooperating Category HARDAYAL MILK: CARE Keeps D Debt Rating in Not Cooperating HARI EQUIPMENTS: CARE Keeps D Debt Ratings in Not Cooperating INTERJEWEL PRIVATE: CARE Keeps D Debt Ratings in Not Cooperating JINDAL GREEN: CARE Keeps C Debt Rating in Not Cooperating KHWAHISH MARKETING: CARE Keeps D Debt Ratings in Not Cooperating KUBS SAFES: CARE Keeps D Debt Rating in Not Cooperating Category LAKSHMI ENGINEERING: CARE Keeps C Debt Rating in Not Cooperating MA MAHAMAYA: CARE Moves D Debt Ratings to Not Cooperating MADARKHAT TEA: CARE Keeps C Debt Rating in Not Cooperating MAHARAJA PAPER: CARE Keeps C Debt Rating in Not Cooperating MARUTI GRANITES: CARE Moves D Debt Rating to Not Cooperating OMID ENGINEERING: CARE Keeps D Debt Rating in Not Cooperating RAVI TEJA: CARE Keeps D Debt Rating in Not Cooperating Category RELIANCE CAPITAL: NCLT Admits RBI's Bid for Insolvency Proceedings SAI BALAJI: CARE Keeps D Debt Ratings in Not Cooperating SAISONS TRADE: CARE Keeps C Debt Rating in Not Cooperating SPARK GREEN: Insolvency Resolution Process Case Summary SRINIVASA STEEL: CARE Keeps D Debt Rating in Not Cooperating SUPREME EXPORTS: CARE Keeps C Debt Rating in Not Cooperating SURYA-LANDMARK DEVELOPERS: Insolvency Resolution Case Summary THANGAVEL FABRICS: CARE Keeps D Debt Ratings in Not Cooperating TRADOHUB B2B LIMITED: Insolvency Resolution Process Case Summary VELANI OILS: CARE Keeps D Debt Ratings in Not Cooperating VHV BEVERAGES: CARE Keeps D Debt Rating in Not Cooperating I N D O N E S I A BANK PAN: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable CHANDRA ASRI: Fitch Affirms & then Withdraws 'BB-' Rating J A P A N MITSUBISHI MOTORS: S&P Alters Outlook on 'BB' ICR to Stable M A L A Y S I A KNM GROUP: Triggers PN17 But Not Classified as Affected Issuer N E W Z E A L A N D ASI TRANSPORT: Creditors' Proofs of Debt Due on Jan. 21 FALCONER CORPORATE: Court to Hear Wind-Up Petition on Dec. 15 NZ LIVING: Creditors' Proofs of Debt Due on Jan. 10 PASTA NOSTRA: Members' Final Meeting Set for Dec. 10 S I N G A P O R E LENDLEASE RETAIL: Creditors' Proofs of Debt Due on Jan. 3 NVSAGE PTE: Creditors' Proofs of Debt Due on Jan. 3 PARK HOTEL CQ: Court Enters Wind-Up Order SWF KRANTECHNIK: Creditors' Proofs of Debt Due on Jan. 4 V I E T N A M ASIA COMMERCIAL: Fitch Raises LT IDR to 'BB-', Outlook Stable MILITARY COMMERCIAL: Fitch Affirms 'B+' LT IDR, Outlook Stable VIETCOMBANK: Fitch Affirms 'BB-' LongTerm IDR, Outlook Positive VIETINBANK: Fitch Affirms 'BB-' LongTerm IDR, Outlook Positive - - - - - ================= A U S T R A L I A ================= HUB FURNITURE: First Creditors' Meeting Set for Dec. 14 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Hub Furniture Lighting Living Pty Ltd will be held on Dec. 14, 2021, at 11:00 a.m. via virtual meeting technology. Daniel Peter Juratowitch and Sam Kaso of Cor Cordis were appointed as administrators of Hub Furniture on Dec. 2, 2021. NCELESTE PTY: First Creditors' Meeting Set for Dec. 15 ------------------------------------------------------ A first meeting of the creditors in the proceedings of Nceleste Pty Ltd will be held on Dec. 15, 2021, at 1:00 p.m. via virtual meeting only. Andre Lakomy & Barry Wight of Cor Cordis were appointed as administrators of Nceleste Pty on Dec. 3, 2021. ========= C H I N A ========= CHINA AOYUAN: Fails to Meet US$651 Million of Payment Demands ------------------------------------------------------------- The Star reports that China Aoyuan Group has failed to meet creditors' demands for the payment of US$651 million in debt following recent credit rating downgrades. Its stock fell 12 per cent to HK$1.78 on Dec. 3. The non-payments may trigger other creditors to request accelerated debt repayment, as permitted under agreements entered into by the company, the report says. "Given the liquidity issues faced by the group, there is no guarantee that the group will be able to meet its financial obligations under its other offshore financing arrangements as and when they fall due," Aoyuan said in a filing to Hong Kong's stock exchange last week, The Star relays. "If the group is unable to meet its obligations to repay any debt when due or to agree with its relevant creditors on the renewal or extension of its borrowings or alternative arrangements, there may be a material adverse effect on the group's business, prospects, financial condition and operating results." Aoyuan is among a string of debt-laden developers including China Evergrande Group and Kaisa Group that have faced liquidity crunches and missed interest payments on their offshore debt in recent months, the report notes. The Star says China's central bank imposed its so-called three red lines on loans for the most leveraged developers, which stopped them from taking on more debt and weakened their debt repayment capacity. This triggered downgrades of their credit ratings. In the last few weeks, Aoyuan has received two downgrades from each of Standard & Poor's and Moody's, and three downgrades from Fitch. "Such ratings downgrades have led to the occurrence of certain trigger events under certain offshore financing arrangements, under which the company and or members of the group are a borrower or a guarantor," Aoyuan, as cited by The Star, said in the filing. As a result of the downgrades, creditors have demanded payment of debt worth US$651.2 million for which it was either the borrower or guarantor. According to the Star, Aoyuan said it has not met the demands, and has not reached any agreement on alternative payment arrangements with the lenders, after trying to resolve the difficult situation "consensually and amicably and within a reasonable time frame". The company has two big deadlines looming - a US$188 million maturity on a 4.2 per cent dollar bond due on January 20, and three days later a US$400 million maturity on an 8.5 per cent dollar bond, the report discloses. It said last month that it had hired Admiralty Harbour Capital as a financial adviser and Linklaters as a legal adviser to assess its capital structure, financial condition and debt and liquidity profile. Its stock has dived around 80% since Beijing imposed the debt caps on the sector in August last year, the report notes. About China Aoyuan China Aoyuan Group Limited, formerly China Aoyuan Property Group Limited, is an investment holding company principally engaged in the sales of properties. The Company operates its business through three segments. The Property Development segment is engaged in the development and sale of properties. The Property Investment segment is engaged in the leasing of investment properties. The Others segment is engaged in hotel operation, the provision of consulting and management services. Through its subsidiaries, the Company is also engaged in construction business. As reported in the Troubled Company Reporter-Asia Pacific in late November 2021, Fitch Ratings has downgraded China Aoyuan Group Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'CCC-' from 'B-'. Fitch has also downgraded the senior unsecured rating and the ratings on the outstanding US-dollar senior unsecured notes to 'CCC-', from 'B-', with a Recovery Rating of 'RR4'. The ratings have been removed from Rating Watch Negative. The downgrade reflects the diminishing likelihood of Aoyuan refinancing its USD688 million public senior notes due January 2022 after the company extended the redemption date of its Aochuang II asset-backed securities and appointed a financial adviser and a legal adviser. The TCR-AP also reported that Moody's Investors Service has downgraded the corporate family rating of China Aoyuan Group Limited to Caa2 from B2. At the same time, Moody's has downgraded the senior unsecured rating on the bonds issued by China Aoyuan to Caa3 from B3. The outlook is changed to negative from ratings under review. CHINA AOYUAN: S&P Lowers ICR to 'SD' on Nonpayment of Borrowings ---------------------------------------------------------------- S&P Global Ratings, on Dec. 6. 2021, lowered its long-term issuer credit rating on China Aoyuan Group Ltd. to 'SD' (selective default) from 'CCC'. S&P also lowered the long-term issue rating on the company's other rated outstanding senior unsecured notes to 'CC' from 'CCC-' to reflect the high vulnerability to nonrepayment. S&P said, "We subsequently withdrew our ratings on Aoyuan and the notes at the company's request. "We lowered our rating on Aoyuan to 'SD' after the company announced that it has not repaid borrowings totaling US$651.2 million, nor has it reached an agreement with creditors on alternative arrangements. We believe the borrowings were accelerated. The nonpayment may trigger cross-default and acceleration provisions on Aoyuan's other obligations, including its offshore senior notes. "In our view, the company's prospect of avoiding a general default depends on its alternative fundraising plans such as asset disposals, and negotiations with creditors on repayment extensions. Aoyuan was able to obtain creditors' approval to extend the maturity of its Chinese renminbi 672.5 million onshore asset-backed securities. However, the progress on the sale of the property management business and other projects has been slow. Also, the net proceeds may fall short of the company's near-term repayment needs. "Besides the announced overdue obligations, Aoyuan has US$688 million of senior notes maturing in January 2022 and US$250 million due in September next year. We see high vulnerability to nonrepayment due to Aoyuan's exceptionally weak liquidity and lack of funding access." CHINA EVERGRANDE: Share Price Up as Debt Restructuring Nears ------------------------------------------------------------ Reuters reports that China Evergrande Group saw its share price rise to 8.3% on Dec. 7, after a 20% loss a day earlier, as the property developer moved closer to restructuring a debt pile so big that default could reverberate across borders. Market participants worldwide are watching to see whether the world's most-indebted property developer, with over US$300 billion in liabilities, makes US$82.5 million in coupon payments before a 30-day grace period ends later in the global day [Dec. 6], Reuters says. A formal default - the largest ever in China - would trigger a wave of cross-default that would flow through the property sector and beyond, striking global investment confidence already shaken by the advent of the Omicron coronavirus variant. On Dec. 6, the developer said it had established a risk-management committee that included officials from state entities to assist in "mitigating and eliminating the future risks", Reuters reports. That came after it earlier said creditors had demanded $260 million and that it could not guarantee funds to repay debt. That prompted authorities to summon its chairman and reassure markets that broader risk could be contained, the report relates. Notes due Nov. 6, 2022 - one of two tranches nearing payment deadline - traded at 18.282 cents on the dollar, Duration Finance data showed, little changed from Dec. 6, the report discloses. Other issuance including a 2024 bond were trading at record lows, Reuters notes. About China Evergrande China Evergrande Group is an integrated residential property developer. The Company, through its subsidiaries, operates in property development, investment, management, finance, internet, health, culture, and tourism markets. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 30, 2021, Fitch Ratings has downgraded to 'C' from 'CC', the Long-Term Foreign-Currency Issuer Default Ratings (IDRs) of Chinese homebuilder, China Evergrande Group, and its subsidiaries, Hengda Real Estate Group Co., Ltd and Tianji Holding Limited. Fitch has affirmed the senior unsecured ratings of Evergrande and Tianji at 'C', with a Recovery Rating of 'RR6', as well as the Tianji-guaranteed senior unsecured notes issued by Scenery Journey Limited at 'C', with a Recovery Rating of 'RR6'. S&P Global Ratings' rating for China Evergrande Group and its subsidiaries Hengda Real Estate Group Co. Ltd. and Tianji Holding Ltd. was lowered to 'CC' from 'CCC' last September 15, 2021. S&P also lowered its long-term issue rating on the U.S. dollar notes issued by Evergrande and guaranteed by Tianji to 'C' from 'CCC-'. CHONGQING HECHUAN: Fitch Lowers LT IDRs to 'BB', Outlook Stable --------------------------------------------------------------- Fitch Ratings has downgraded China-based Chongqing Hechuan City Construction Investment (Group) Co., Ltd's (HCCT) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) to 'BB' from 'BB+'. The Outlook on the IDRs is Stable. Concurrently, Fitch has downgraded HCCT's senior unsecured notes to 'BB' from 'BB+'. Fitch has also reassessed the Standalone Credit Profile to 'b' from 'b+'. The downgrade mirrors a revision in Fitch's internal assessment of the Hechuan district, reflecting its slowing economic growth and rising pressure on its budgetary performance. Nevertheless, Fitch believes the linkage between HCCT and the district remains intact as the company is still a key functional government-related entity (GRE) that focuses on Hechuan, one of Chongqing city's 12 new urban districts. KEY RATING DRIVERS 'b' Standalone Credit Profile: Fitch assesses HCCT's revenue defensibility and operating risk at 'Midrange', as the company is Hechuan district's flagship urban developer with a stable cost structure and an adequate supply of resources in the region. Fitch assesses its financial profile at 'Weaker' due to its net adjusted debt/EBITDA of around 56x at end-2020. Fitch expects this to remain relatively high at around 48x by 2025 under Fitch's rating-case scenario, although the company has received continuous capital injections from the local government that supplement its debt-servicing sources and mitigate refinancing risk. 'Very Strong' Status, Ownership and Control: HCCT was established as a limited liability company under China's company law. The district government maintains full control over the company by appointing its senior management, approving its budget and investment plans, and performing annual assessments through the Chongqing Hechuan District State-owned Assets Management Centre. 'Strong' Support Record: The Hechuan government injected several important local GREs, with total assets of around CNY37 billion, into HCCT in 2016. This made HCCT the district's primary urban-development platform and largest GRE by total assets. The local government has also provided HCCT with annual operating subsidies and substantial capital injections to relieve its debt burden and refinancing risk. 'Moderate' Socio-Political Implications of Default: HCCT is engaged in infrastructure construction, primary-land development and wholesale commodity trading in Hechuan district. Fitch assesses the socio-political implications of a default to be 'Moderate', as its projects are partially undertaken by subsidiaries. Hence, a HCCT default would not necessarily halt its services totally as the local government can appoint other entities to perform part of its functions in the interim. 'Very Strong' Financial Implications of Default: HCCT and its subsidiaries are frequent bond issuers in the domestic and offshore markets, with most of their debt raised for key local infrastructure projects of a public-service nature. Fitch believes a default would severely damage the local government's reputation and constrain its financing capability. DERIVATION SUMMARY HCCT is rated under Fitch's Government-Related Entities Rating Criteria. Fitch's assessment under the GRE criteria reflects the district's direct ownership, oversight and ongoing support and the socio-political and financial implications for the government should HCCT default. HCCT's IDRs are derived from the four factors under the Government-Related Entities Rating Criteria and the 'b' Standalone Credit Profile under Fitch's Public Sector, Revenue-Supported Entities Rating Criteria. RATING SENSITIVITIES Factor that could, individually or collectively, lead to positive rating action/upgrade: -- An upward revision in Fitch's credit view of the Hechuan district's ability to provide subsidies, grants or other legitimate resources allowed under China's policies and regulations, together with an improvement of HCCT's Standalone Credit Profile, would lead to positive rating action. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- A lowering of Fitch's credit view of the Hechuan district's ability to provide subsidies, grants or other legitimate resources allowed under China's policies and regulations would pressure the ratings; -- A significant weakening of the socio-political or financial implications of a default, or assessment of the government's support record or a dilution of the government's shareholding or weaker control. -- A deterioration of HCCT's Standalone Credit Profile would also affect the ratings. Any rating action on HCCT's IDR would result in similar rating action on its rated senior unsecured notes. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Sovereigns, Public Finance and Infrastructure issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of three notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. KAISA GROUP: Creditors Offer Forbearance to Avoid Bond Default -------------------------------------------------------------- Bloomberg News reports that Kaisa Group, the Chinese developer that became the nation's first to default on dollar bonds back in 2015, may have caught a break to avoid doing so again, at least for now. A group of Kaisa Group Holdings Ltd. noteholders sent the company a formal forbearance proposal on Monday evening [Dec. 6] in Hong Kong, people familiar with the matter said, Bloomberg relays. Kaisa's debt woes have added to broader distress in China's troubled real estate sector recently. That's because it's the nation's third-largest issuer of dollar notes among developers, even as it ranks just 27th by property sales. According to Bloomberg, the plan could see Kaisa avoid a formal default on a $400 million dollar bond due Dec. 7, though uncertainty remains after it failed last week to win approval for a debt swap that would have extended the deadline. More strains emerged this week, Bloomberg says. State broadcaster CCTV reported that Kaisa is unable to deliver some residential projects to buyers and has failed to pay salaries to some workers in the in the southern city of Guangzhou. The creditor group is being advised by New York-based advisory firm Lazard Ltd. and holds Kaisa notes with a face value of about $5 billion, according to the people, who asked not to be identified discussing the details, Bloomberg relays. Talks include a so-called new money deal that would inject cash into Kaisa, the people said. About Kaisa Group Kaisa Group Holdings Ltd engages in real estate development in China, including urban redevelopment projects in the GBA. As of June 30, 2021, the company's land bank comprised an aggregate gross floor area of 31.1 million square meters of saleable resources across over 50 cities in China. As recently reported in the Troubled Company Reporter-Asia Pacific, Moody's Investors Service has downgraded the corporate family rating of Kaisa Group Holdings Ltd to Ca from Caa1. At the same time, Moody's has downgraded the senior unsecured rating on the bonds issued by Kaisa to C from Caa2. The outlook remains negative. The TCR-AP has also reported that S&P lowered its long-term issuer credit rating on Kaisa Group Holdings Ltd. to 'CCC-' from 'CCC+'. The negative outlook reflects Kaisa's very high nonpayment risk and high probability of debt restructuring. S&P subsequently withdrew its 'CCC-' long-term issuer credit rating on Kaisa at the issuer's request. KAISA GROUP: Sells HK Office for Debt Repayment ----------------------------------------------- Caixin Global reports that Kaisa Group Holdings Ltd. is offloading more assets to alleviate a liquidity crunch as the Chinese developer struggles with deepening debt woes and an imminent default risk. Hong Kong-listed Kaisa sold the 38th floor of The Center, one of Hong Kong's tallest skyscrapers in the city's central business district, for HK$750 million (US$96.2 million) to China Shandong Hi-Speed Financial Group to settle part of an outstanding loan, Shandong Hi-Speed said in a filing over the weekend, Caixin relates. About Kaisa Group Kaisa Group Holdings Ltd engages in real estate development in China, including urban redevelopment projects in the GBA. As of June 30, 2021, the company's land bank comprised an aggregate gross floor area of 31.1 million square meters of saleable resources across over 50 cities in China. As recently reported in the Troubled Company Reporter-Asia Pacific, Moody's Investors Service has downgraded the corporate family rating of Kaisa Group Holdings Ltd to Ca from Caa1. At the same time, Moody's has downgraded the senior unsecured rating on the bonds issued by Kaisa to C from Caa2. The outlook remains negative. The TCR-AP has also reported that S&P lowered its long-term issuer credit rating on Kaisa Group Holdings Ltd. to 'CCC-' from 'CCC+'. The negative outlook reflects Kaisa's very high nonpayment risk and high probability of debt restructuring. S&P subsequently withdrew its 'CCC-' long-term issuer credit rating on Kaisa at the issuer's request. RISESUN REAL: Moody's Lowers CFR to B3, Outlook Remains Negative ---------------------------------------------------------------- Moody's Investors Service has downgraded the corporate family rating of RiseSun Real Estate Development Co., Ltd. to B3 from B1. At the same time, Moody's has downgraded to Caa1 from B2 the backed senior unsecured rating on the bonds issued by RongXingDa Development (BVI) Limited and unconditionally and irrevocably guaranteed by RiseSun. The outlook on all ratings remains negative. "The ratings downgrade reflects RiseSun's increased refinancing risks because of its weakened liquidity and funding access and sizable maturing debts," says Kelly Chen, a Moody's Assistant Vice President and Analyst. "The negative outlook reflects the uncertainty over the company's ability to address all its near-term debt maturities amid challenging funding conditions," adds Chen. RATINGS RATIONALE Moody's expects RiseSun's refinancing risks will heighten as it faces difficulties in raising new funds from its key financing channels to address its maturing debts, which include approximately $780 million offshore bonds maturing before end of April 2022. Moody's estimates that RiseSun repaid around RMB12 billion of bank and other borrowings in Q3 2021, while obtaining financing of around RMB4 billion during the same period. The company's total cash declined to RMB24.8 billion as of the end of September from RMB29.2 billion as of the end of June 2021. Moody's also expects RiseSun's contracted sales will decline over the next 6-12 months, driven by weaker homebuyer confidence and the company's tight liquidity. This will weaken its operating cash flow and further strain its liquidity. RiseSun's B3 CFR reflects the company's narrow funding access and increased refinancing risk amid tight funding conditions. It also reflects the company's high exposure to lower-tier cities where housing demand is less certain because of weaker economic conditions. On the other hand, RiseSun's rating also considers the company's long operating history and strong brand name in the Bohai Rim region. RongXingDa's Caa1 senior unsecured bond rating is one notch lower than RiseSun's B3 CFR because of the risk of structural subordination. This risk reflects the fact that most of the claims are at the operating subsidiary level and have priority over claims at the holding company level in a bankruptcy scenario. In addition, the holding company lacks significant mitigating factors for structural subordination. As a result, the expected recovery rate for claims at the holding company will be lower. With respect to environmental, social and governance (ESG) factors, RiseSun's B3 CFR considers the company's concentrated ownership, with its chairman, Geng Jianming, and his family and friends holding a 63.38% stake as of December 1, 2021. Moody's has also considered the presence of four special committees -- the Audit Committee, the Remuneration Committee, the Nomination Committee and the Strategic Committee -- to oversee the company's management and operations, as well as the company's disclosure of significant related-party transactions as required by the Corporate Governance Code for companies listed on the Shenzhen Stock Exchange. In terms of dividend payments, RiseSun maintained a largely stable payout ratio of 20%-26% of attributable net income in 2018-20. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could downgrade the rating if RiseSun's liquidity and funding access deteriorate further. An upgrade of the ratings is unlikely, given negative outlook. However, Moody's could revise the outlook to stable if RiseSun improves its funding access, materially reduces its refinancing risks and significantly strengthens its operating cash flow. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in January 2018. Founded in 1996, RiseSun Real Estate Development Co., Ltd. (RiseSun) engages in real estate and industrial park development, property management services and hotel operations in China. The company was listed on the Shenzhen Stock Exchange in 2007 and is headquartered in Langfang, Hebei province. As of the end of June 2021, it had more than 300 property development projects with an aggregate gross floor area of 37.4 million square meters. YANGO GROUP: Parent Gets One-Year Bond Payment Extension -------------------------------------------------------- Bloomberg News reports that Yango Group Co. received a reprieve after its parent company got bondholders' approval to delay payment of a local bond due this week. Holders of the CNY400 million (US$63 million) bond issued by Fujian Yango Group, parent of Yango Group, on Dec. 3 supported a proposal to extend principal payment of the debt due Dec. 7 by a year, Bloomberg relates citing to a filing on the Shanghai Clearing House. The agreement, reached at a second meeting with bondholders, came after negotiations failed last week. Bloomberg says China's stressed developers face almost $1.3 billion of bond payments in December, after a month in which investor sentiment toward the property sector showed signs of stabilizing despite fresh indications of liquidity pressure. Yango Group became the latest company to try avoid default through extending bonds earlier this month, according to Bloomberg. It recently succeeded in changing repayment deadlines for some onshore debt and offshore bonds, as developers seek to extend due dates amid the sector's liquidity crunch, the report notes. About Yango Group Yango Group Co.,Ltd is a China-based company principally engaged in the development and sale of real estates. The Company's property projects include residential buildings, office buildings and commercial properties, among others. The Company is also involved in the import and export trading, hotel operation, education management and other businesses. The Company mainly operates its business in domestic market, with East China as its main market. As reported in the Troubled Company Reporter-Asia Pacific in November 2021, 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. ========= I N D I A ========= AGRIMONY TRADEX: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CARE Ratings said the ratings for the bank facilities of Agrimony Tradex Vyaappar Private Limited (ATVPL) continue to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 10.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 15.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 11, 2020, placed the rating(s) of ATVPL under the 'issuer non-cooperating' category as ATVPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. ATVPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 27, 2021, October 7, 2021, October 17, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Agrimony Tradex Vyaappar Private Limited (ATVPL) was incorporated in 2017 and is promoted by Mr. Sunil Kumar Choudhary, who is the managing director and the Chief Executive Officer of the company; he looks after the overall business operations of the company and has two decades of experience. He is ably supported by Mr. Bivor Bagaria, who is the director and Chief Financial Officer of the company and has an overall experience of over a decade and takes care of finance. ATVPL is part of Narayani group; the group comprises of five companies namely Narayani Steels Limited (NSL), Narayani Ispat Limited (NIL), Hari Equipment Private Limited (HEPL), Kedarnath Commotrade Private Limited (KCPL) and Agrimony Tradex Vyaappar Private Limited (ATVPL). Narayani group is engaged in trading of blooms, billets, TMT bars, pellets, wire coils and manufacturing of TMT bars and other long products such as rounds, flats, angles, channels, etc. Further, the group has a wide network for the sales and distribution of the products across Andhra Pradesh, Telangana and other states in India. BALAJI INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sri Balaji Industries (SBI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.63 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 11, 2020, placed the rating(s) of SBI under the 'issuer non-cooperating' category as SBI had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SBI continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 27, 2021, October 7, 2021, October 17, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). SBI is a proprietorship concern, established in 2011 by Mr. M R Subrahmanyam. The firm is engaged in distillation of Solvents used by petrochemical and other chemical manufacturing companies. In FY15, SBI had a surplus of INR0.27 crore on a total operating income of INR13.45 crore, as against PAT and TOI of INR0.27 crore and INR7.78 crore, respectively, in FY14. BANSAL RICE: CARE Keeps D Debt Rating in Not Cooperating Category ----------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Bansal Rice Mills (BRM) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 17, 2020, placed the rating(s) of BRM under the 'issuer non-cooperating' category as BRM had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. BRM continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated October 3, 2021, October 13, 2021, October 23, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Bansal Rice Mill (BRM) was established in April 2007 as a partnership firm and is currently being managed by Mr. Sandeep Kumar, Mr. Amandeep Bansal, Mr. Badri Prasad, Mrs Rashmi Bansal and Mrs Manisha Bansal as its partners sharing profit and loss equally. The firm is engaged in processing of paddy and milling of rice since FY15 (refers to the period April 1 to March 31) at its manufacturing facility located at Sangrur (Punjab) having an installed capacity of 12306 tonnes per annum as of March 31, 2016. Prior to FY15, BRM was involved in cotton ginning and milling of rice primarily for the government. Presently, BRM procures paddy directly from local grain markets located in Punjab and sells the finished products to various wholesalers located in Delhi and Haryana. BHARATI BIO: CARE Keeps D Debt Rating in Not Cooperating Category ----------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sree Bharati Bio Genetics Private Limited (SBBGPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 20, 2020, placed the rating(s) of SBBGPL under the 'issuer non-cooperating' category as SBBGPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SBBGPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated October 6, 2021, October 16, 2021 and October 26, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Sree Bharati Bio Genetics Private Limited (SBBGPL) was incorporated in the year 2013 and the company started its commercial operations from March2015. SBBGPL promoted by Mr. Rama Krishna Reddy along with his family members. SBBGPL is engaged in drying of Maize on job work basis. Its peak processing capacity is 6000 MT per season. The company undertakes the job work from the companies like VNR Seeds, Vaishnavi Agro Industries Private Limited and other customers who are located in the state of Telangana, Andhra Pradesh, and Maharashtra. CCCL INFRASTRUCTURE: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of CCCL Infrastructure Limited (CIL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 55.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 9, 2020, placed the rating(s) of CIL under the 'issuer non-cooperating' category as CIL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. CIL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 25, 2021, October 5, 2021 and October 15, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). CIL was established in 2007 as a subsidiary of Consolidated Construction Consortium Limited (CCCL). CIL operates a Solar Power plant of 5-MW capacity at Sekkarakudi in Tuticorin district of Tamil Nadu. The plant is spread over an area of 44 acres and commissioned its operations in February 2012. COSMOS INFRA: CARE Lowers Rating on INR72cr LT Loan to C -------------------------------------------------------- CARE Ratings revised the ratings on certain bank facilities of Cosmos Infra Engineering (India) Private Limited (CIEIPL), as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 72.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category and Revised from CARE B-; Stable Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated December 7, 2020, placed the rating(s) of CIEIPL under the 'issuer non-cooperating' category as CIEIPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. CIEIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated October 23, 2021, November 2, 2021, and November 12, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Cosmos Infra Engineering India Private Limited (CIEIPL) was incorporated in 1986 as Cosmos Builders & Promoters Limited by Mr. Vinod Mittal (Chairman & Managing Director). Later in March 2008, the company changed its name to Cosmos Infra Engineering India Limited. Further, in June-2016, the company became Private Limited and subsequently, its name changed to the present one Cosmos Infra Engineering India Private Limited. During the last surveillance, CIEIPL was developing two residential housing projects namely Cosmos Express 99 and Cosmos Green Phase 3 involving the development of 18.31 lakh sq. ft of saleable area with a projected cost of INR423 crore. Cosmos express 99 is located in Gurgaon (Haryana), whereas Cosmos Greens phase 3 is located in Bhiwadi (Rajasthan). DHARWAD METALLICS: CARE Keeps D Debt Rating in Not Cooperating -------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Dharwad Metallics Private Limited (DMPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 6.30 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 10, 2020, placed the rating(s) of DMPL under the 'issuer non-cooperating' category as DMPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. DMPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 26, 2021, October 6, 2021, and October 16, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Dharwad Metallics Private Limited (DMPL) was incorporated in the year 2011 by Ms. Ruchita Rajendra Patole, Mr. Belaval Subhash and Mrs. Roopadevi Basavaraddi Devaraddi. The company is engaged in the manufacturing of SG Iron/ Cast Iron and does Casting of Metals including finished or semi-finished products. GRD FOODS: CARE Keeps D Debt Rating in Not Cooperating Category --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of GRD Foods Private Limited (GFPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 14.89 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 26, 2020, placed the rating(s) of GFPL under the 'issuer non-cooperating' category as GFPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. GFPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated October 12, 2021, October 22, 2021, November 1, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Incorporated in 2012, GRD Foods Private Limited (GFPL) is engaged in the manufacturing of dairy products like ghee, whole milk powder (WMP), skimmed milk powder (SMP), dairy whitener, butter etc. The operations of GFPL started in April 2014. The company has its milk processing unit in Kathua (Jammu and Kashmir) and sells its products under the brand name 'GRD' to wholesalers and institutional clients all over India. GFPL has an installed capacity to process 10,000 liters per hour (LPD) of raw milk. GFPL has another group concern viz. Sandhu Trading Company (STC; established in 2005, which is engaged in trading of milk and milk products. HARDAYAL MILK: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Hardayal Milk Products Private Limited (HMPPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 50.72 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 10, 2020, placed the rating(s) of HMPPL under the 'issuer non-cooperating' category as HMPPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. HMPPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 26, 2021, October 06, 2021, October 16, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Hardayal Milk Products Pvt. Ltd. (HMPPL) was setup by Mr. Praveendra Kumar, Mr. Ramveer Singh, Mr. Hardayal Singh, Mr. Veerpal Singh and Mr. Amol Yadav in July 2005. The company commenced production from December 2006. HMPPL is involved in the production of various milk products mainly in Pasteurized packed milk, Ghee and other milk products like Flavored Milk, Curd, flavored Yogurt, Buttermilk, Paneer, SMP (Skimmed Milk Powder), Pasteurized Butter, Whole Milk Powder and Dairy Whitener. Pasteurized milk is sold to institutional buyers in bulk, and other milk products are sold through retail chain with "Hardayal" brand name. The products are well established in the regional markets of Rajasthan, Uttar Pradesh, Uttarakhand, Punjab, Haryana, Maharashtra, West Bengal, Delhi, Madhya Pradesh, Andhra Pradesh, and North – East States. HARI EQUIPMENTS: CARE Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Hari Equipments Private Limited (HEPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 20.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 10.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 11, 2020, placed the rating(s) of HEPL under the 'issuer non-cooperating' category as HEPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. HEPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 27, 2021, October 7, 2021, October 17, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Incorporated in 1971, Hari Equipments Private Limited (HEPL) was promoted by Mr. Kishanlal Choudhary who has more than three decades of experience in the Iron and Steel Industry. He is ably supported by his son Mr. Sunil Choudhary, who is the managing director and chief executive officer with an overall experience of 20 years. HEPL is part of Narayani group; the group comprises of five companies namely Narayani Steels Limited (NSL), Narayani Ispat Limited (NIL), Hari Equipment Private Limited (HEPL), Kedarnath Commotrade Private Limited (KCPL) and Agrimony Tradex Vyaappar Private Limited (ATVPL). Narayani group is engaged in trading of blooms, billets, TMT bars, pellets, wire coils and manufacturing of TMT bars and other long products such as rounds, flats, angles, channels, etc. Further, the group has a wide network for the sales and distribution of the products across Andhra Pradesh, Telangana and other states in India. INTERJEWEL PRIVATE: CARE Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Interjewel Private Limited (IPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 210.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 1.60 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated December 17, 2020, placed the rating(s) of IPL under the 'issuer non-cooperating' category as IPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. IPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated November 2, 2021, November 12, 2021, November 22, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. InterJewel Private Ltd (IPL) was established as a partnership firm in 1970, in the name of D. Navinchandra & Co. by Mr. Shantibhai Mehta and Mr. Navinbhai Mehta. The partnership firm was converted into a private limited company in April 2007 and subsequently renamed to its current name IPL. The group as a part of its restructuring process carried out a scheme of amalgamation and de-merger exercise with effect from April 01, 2009. IPL, now promoted by Mr. Rupen Kothari, Mr. Shrenik Choksi and Mr. Hemal Choksi, is engaged in the business of importing and processing of rough diamonds and exporting cut and polished diamonds (CPD) of various sizes and shapes. The diamond processing activities of IPL are undertaken at its own manufacturing facilities in Surat. IPL has its sales offices at Mumbai, Delhi and Ahmedabad. Currently, IPL has a 'Rio Tinto Select Diamantaire' status. Day to day operations of the company is managed by Mr. Hemal Choksi – CEO. JINDAL GREEN: CARE Keeps C Debt Rating in Not Cooperating --------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Jindal Green Crop International Private Limited (JGCIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 12.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Short Term Bank 40.00 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 17, 2020, placed the rating(s) of JGCIPL under the 'issuer non-cooperating' category as JGCIPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. JGCIPL continues to be non-cooperative despite repeated requests for submission of information through emails, phone calls and a letter/email dated October 3, 2021, October 13, 2021, October 23, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Incorporated in July 2013, Jindal Green Crop International Private Limited (JGCI) was promoted by Mr. Dalip Jindal and Mrs. Shaloo Jindal. JGCI imports pulses (Red Lentils, Chickpeas, Green Peas, Yellow Peas, Pigeon Peas, Black Matpe, Green Moong, Lentils). JGCI sells its products mostly in the domestic market through a network of wholesale dealers and brokers. The other group companies SG Polyplast Private Limited and Jindal Agro International are also engaged in a similar line of business of trading pulses. These entities also supply to Government (for defense and PublicDistribution System in Haryana, Punjab and Himachal Pradesh) which contributes about 25% of the combined business of the group. KHWAHISH MARKETING: CARE Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Khwahish Marketing Private Limited (KMPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 7.50 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 1.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated December 3, 2020, placed the rating(s) of KMPL under the 'issuer non-cooperating' category as KMPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. KMPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated October 19, 2021, October 29, 2021, November 8, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). KMPL was incorporated in 2004 and is currently being managed by Mr. Prashant Sharma. The company is engaged in the trading of iron and steel products such as hot-rolled coils. The company procures the product from manufacturers located in Delhi and nearby regions. The company sells its products through commission agents as well as directly to traders located in Delhi and nearby regions. KUBS SAFES: CARE Keeps D Debt Rating in Not Cooperating Category ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Kubs Safes and Locks Private Limited (KSLPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 28.76 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 6, 2020, placed the rating(s) of KSLPL under the 'issuer non-cooperating' category as KSLPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. KSLPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 22, 2021, October 2, 2021 and October 12, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). KSLPL is engaged in the business of manufacturing and trading of various physical security equipment such as safe deposit lockers and boxes, record protection filing cabinets, fire-resistant data storage cabinets, fire-resistant vault doors, and similar space-saving storage equipment. These products are primarily used by jewelers, corporate houses, banks, financial institutions and government establishments. KSL was incorporated on October 13, 2009 by a group of entrepreneurs who are involved in the distribution of physical security equipment of reputed global majors in the Middle East, since 2004. The firm has setup a warehouse at Oragadam, Chennai, for storing the inventory. KSL has an associate concern KUBS Impex Private Limited, established in 2010, which is engaged in trading of office products such as shredders, laminating, and binding machines. The company has availed moratorium on its existing bank facilities from March to August 2020 amid COVID-19 RBI guidelines. LAKSHMI ENGINEERING: CARE Keeps C Debt Rating in Not Cooperating ---------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sree Lakshmi Engineering Works (SLEW) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Short Term Bank 1.00 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated October 30, 2020, placed the rating(s) of SLEW under the 'issuer non-cooperating' category as SLEW had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SLEW continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 15, 2021, September 25, 2021, and October 5, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Tirupati-based SLEW was established by Mr. K. Amarnath Reddy and his family members in the year 2001 as a partnership concern. The firm is engaged in civil works such as water supply works, laying roads and construction of buildings for government bodies such as Panchayat Raj and Municipal Corporations which are procured through tenders. The firm has executed several contracts since its inception and currently has an order book worth around INR50.36 crore as of December 15, 2017, to be executed by September 2018. MA MAHAMAYA: CARE Moves D Debt Ratings to Not Cooperating --------------------------------------------------------- CARE Ratings has migrated the rating on bank facilities of Ma Mahamaya Rice Mill Private Limited (MMRMPL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.36 CARE D; ISSUER NOT COOPERATING Facilities Rating moved to ISSUER NOT COOPERATING category Short Term Bank 0.45 CARE D; ISSUER NOT COOPERATING Facilities Rating moved to ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE has been seeking information from MMRMPL to monitor the rating(s) vide email communications/letters dated August 10 2021, November 12 2021 among others and numerous phone calls. However, despite repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Further, Ma Mahamaya Rice Mill Private Limited has not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. The rating on Ma Mahamaya Rice Mill Private Limited's bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). The ratings have been revised on account of lack of information and non-receipt of fees. Rating Sensitivities: Not Applicable Ma Mahamaya Rice Mill Private Limited was incorporated in July 2006 with an objective to enter into the rice milling and processing business. The manufacturing unit of the company is located at Madhyamgram, Dist: Burdwan with an installed capacity of 40000 metric tons per annum. The company sells its finished product under the brand name of Mahamaya Bhog. The company is procuring raw paddy from the local farmers and small paddy agents. Mr. Sandip Hazra (Director) and Mrs. Madhumita Hazra who have around 21 years and 16 years of experiences, respectively, in similar line of business, are looking after the day-to-day operation of the company. MADARKHAT TEA: CARE Keeps C Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Madarkhat Tea Co Private Limited (MTCPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.80 CARE C; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated October 13, 2020, placed the rating(s) of MTCPL under the 'issuer non-cooperating' category as MTCPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. MTCPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated August 29, 2021, September 8, 2021 and September 18, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Madarkhat Tea Company Pvt Ltd (MTCPL) was incorporated during 1954 at Dibrugarh in Assam. The company is primarily involved in the cultivation of green tea leaves and processing them into different types of black tea with an aggregate tea processing capacity of 12.0 lakh kg per annum. MTCPL owns three tea estate at Madarkhat, Lahoalbari and Parbatipur in Dibrugarh, Assam. The aggregate area under cultivation is 487.24 hectares, having yielding capacity of 4.44, 2.08 and 3.17 lakh kg per annum of green leaf, respectively, from 3 gardens. It mainly sells products through auctions. MAHARAJA PAPER: CARE Keeps C Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Maharaja Paper Industries Private Limited (MPIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 14.06 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Short Term Bank 3.00 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 9, 2020, placed the rating(s) of MPIPL under the 'issuer non-cooperating' category as MPIPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. MPIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 25, 2021, October 5, 2021, October 15, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Maharaja Paper Industries Private Limited (MPIPL) was incorporated in the year 1999 and promoted by Mr. P. V. Ramakrishna Raju and their relatives. The company was incorporated as Rolex Paper Mills Limited and later on, the name was changed to its current nomenclature. MPIPL is engaged in the production of paper of all varieties viz. newsprint, cream wove and kraft papers. The manufacturing facilities are located at Chintaparru, Palakol Mandal, West Godavari District, Andhra Pradesh. MARUTI GRANITES: CARE Moves D Debt Rating to Not Cooperating ------------------------------------------------------------ CARE Ratings has migrated the rating on bank facilities of Maruti Granites and Marbles Private Limited (MGMPL) to Issuer Not Cooperating category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 11.00 CARE D; ISSUER NOT COOPERATING Facilities Rating moved to ISSUER NOT COOPERATING category Detailed Rationale and key rating drivers CARE has been seeking information from MGMPL to monitor the rating vide email communications dated July 13, 2021, July 26, 2021, August 4, 2021, September 16, 2021, October 5, 2021 & November 9, 2021, and numerous phone calls. However, despite repeated requests, the company has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the ratings on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. The rating on MGMPL bank facilities will now be denoted as CARE D; ISSUER NOT COOPERATING. Users of this rating (including investors, lenders, and the public at large) are hence requested to exercise caution while using the above rating(s). Detailed description of the key rating drivers At the time of the last rating on September 1, 2020, the following were the rating weaknesses. Key Rating Weakness * Delay in debt servicing: Delays in debt servicing owing to poor liquidity position as per bank statement of Cash Credit account, there is overdrawn in cash credit account from January 31, 2020 to July 22, 2020 owing to non-payment of interest obligation for the month of January 2020 and February 2020 owing to poor liquidity position. From March 2020 to August 2020, the company has taken moratorium as per RBI guidelines. Further, in July 2020, the company has taken Covid-19 term loan of INR2.20 crore, out of which INR1.07 crore was disbursed on July 23, 2020, and used for adjustment in cash credit account. Maruti Granites and Marbles Private Limited (MGMPL), incorporated in 1987, is promoted by Udaipur (Rajasthan) based Rajgarhia family. MGMPL is engaged in the business of marble processing with its processing facility located at Sukher, Udaipur, Rajasthan having processing capacity of 2,00,000 sq ft per month to process marble slabs and tiles. The company procures marbles slabs and tiles from domestic market including purchase from its group concern and imports from Italy and Turkey. It sells its product in domestic market as well as export to other countries. OMID ENGINEERING: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of OMID Engineering Private Limited (OEPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 14.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated December 2, 2020, placed the rating(s) of OEPL under the 'issuer non-cooperating' category as OEPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. OEPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated October 18, 2021, October 28, 2021, November 7, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). New Delhi-based OEPL, incorporated in October 1983, belongs to the 'Him Group of Companies' and is engaged in the manufacturing of LPG cylinders. The company was initially engaged in the job work activities of painting the cylinders manufactured by its sister concern, Him Cylinders Ltd (HCL; rated 'CARE D; ISSUER NOT COOPERATING'). Subsequently, in July-2001, the company established a facility for manufacturing of LPG cylinders in the Una district of Himachal Pradesh. OEPL is having an installed capacity of 500,000 units per annum as of March 31, 2016 and sells its entire output to the public sector Oil Marketing Companies (OMCs). The Him group, promoted by Mr. Ashok Prakash Raja, is into the manufacturing of LPG cylinders & related products like valves and regulators, manufacturing of steel ingots, and real estate business. Over the years, the group has gradually expanded its capacities and diversified into different products. The company has six group concerns, namely HIM Motors Private Limited, HIM Valves and Regulators Private Limited (HVRPL; rated 'CARE D'; ISSUER NOT COOPERATING), HIM Cylinders Limited, HIM Alloys and Steels Private Limited (HASPL; rated 'CARE D'; ISSUER NOT COOPERATING), HIM Colonizers Private Limited and HIM Cements Private Limited. RAVI TEJA: CARE Keeps D Debt Rating in Not Cooperating Category --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Ravi Teja Textiles (RTT) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 4.82 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 9, 2020, placed the rating(s) of RTT under the 'issuer non-cooperating' category as RTT had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. RTT continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 25, 2021, October 5, 2021, October 15, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which, however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Ravi Teja Textiles (RTT) was established as a proprietorship concern by Mr. D. Sarveswara Rao in the year 1990. The firm is engaged in the trading of sarees and ladies dress materials. The firm has two showrooms, one located in Ongole while the other located in Piduguralla, Andhra Pradesh. While the showroom in Ongole has been operating since 1990, the new showroom in Piduguralla was started during the end of FY14. In FY15, RTT had a surplus of INR0.13 crore on a total operating income of INR12.60 crore, as against PAT and TOI of INR0.12 crore and INR8.46 crore, respectively, in FY14. RELIANCE CAPITAL: NCLT Admits RBI's Bid for Insolvency Proceedings ------------------------------------------------------------------ The Telegraph India reports that the Mumbai bench of the National Company Law Tribunal (NCLT) on Dec. 6 admitted a petition moved by the Reserve Bank of India (RBI) to initiate insolvency proceedings against Anil Ambani's Reliance Capital Ltd (RCL). The Telegraph India relates that the bench comprising Pradeep Narhari Deshmukh and Kapal Kumar Vohra also confirmed the appointment of Y. Nageswar Rao as the administrator of the non-bank lender which is registered as a core investment company. Last week, the central bank had filed an application with the tribunal for the initiation of insolvency proceedings. At the hearing on Dec. 6, the Mumbai bench of the NCLT reserved its order and later it admitted the RBI application. According to the report, the administrator will now move to take the next steps that include looking after the affairs of the company, accepting claims from various creditors which will be followed by the committee of creditors submitting a resolution plan. Under the Insolvency and Bankruptcy Code, the resolution should be completed within a maximum period of 330 days after it is initiated, the report notes. Appearing for the RBI, senior counsel Ravi Kadam said that private sector lender Yes Bank had subscribed to non-convertible debentures (NCDs) of INR987 crore issued by RCL on October 30, 2017. However, with RCL defaulting on these instruments, other events got triggered, the report relays. Reliance Capital had earlier said that it will fully co-operate with the administrator for the expeditious resolution of its debt, a stand that was reiterated by its counsel on Dec. 6, the report says. "The Company looks forward to expeditious resolution of its debt and continuation as a well capitalised going concern through the IBC process, in the overall interests of all its stakeholders, including lenders, customers, employees and shareholder," a company release said. On November 29, the banking regulator had superseded the board of Reliance Capital, The Telegraph India recalls. The RBI said that this was done because of the defaults by RCL in meeting various payment obligations to its creditors and serious governance concerns which its board has not been able to address effectively. This is the third Anil Ambani group firm after Reliance Communications and Reliance Naval and Engineering undergoing insolvency proceedings. A day later, the RBI appointed a committee to advise the administrator. The three-member advisory panel included Sanjeev Nautiyal, the former deputy managing director of SBI, Srinivasan Varadarajan, ex-DMD, Axis Bank and Praveen P Kadle, the former managing director & CEO, of Tata Capital Ltd, the report discloses. About Reliance Capital Headquartered in Mumbai, India, Reliance Capital Limited -- https://www.reliancecapital.co.in/ -- a non-banking financial company, primarily engages in lending and investing activities in India, Singapore, and Mauritius. The company operates through Finance & Investment, General Insurance, Life Insurance, Commercial Finance, Home Finance, and Others segments. It offers life, health, and general insurance products; brokerage and distribution services, including stock broking, wealth management, and third party distribution; and commercial and home finance services, such SME, retail, microfinance, renewable, affordable housing, and home loans, as well as loans against property and construction finance. The company also provides asset reconstruction, institutional broking, and proprietary investments services, as well as other financial and allied services. The company was formerly known as Reliance Capital & Finance Trust Limited and changed its name to Reliance Capital Limited in January 1995. SAI BALAJI: CARE Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Sri Sai Balaji Associates (SSBA) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 0.60 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 6.90 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 10, 2020, placed the rating(s) of SSBA under the 'issuer non-cooperating' category as SSBA had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SSBA continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 26, 2021, October 6, 2021, October 16, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Kadapa (Andhra Pradesh) based, Sri Sai Balaji Associates was established as a partnership firm in 2002 by Mr. Venkata Subba Reddy and Mr. Pal Reddy. SSBA is engaged in civil construction works like construction of canals, water tanks and under wiring works relating to Department of Power Grid Corporation of India, in Andhra Pradesh and Telangana. The firm purchases materials like cement, steel, metal and CWD pipes from local suppliers located in and around Andhra Pradesh and engage into construction works. Till now, the firm has completed around 20 projects with total value of about INR200.00 crore. SAISONS TRADE: CARE Keeps C Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Saisons Trade & Industry Private Limited (STIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 35.00 CARE C; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 3.00 CARE A4; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated December 10, 2020, placed the rating(s) of STIPL under the 'issuer non-cooperating' category as STIPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. STIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated October 26, 2021, November 5, 2021, November 15, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. STPL incorporated in 1999, by Mr. Siddharth Shah, is engaged in manufacturing of various electrical and engineering products like electrical panel, fire panel & accessories, wire harness, accessories for telecom towers and fabrication of various products. SPARK GREEN: Insolvency Resolution Process Case Summary ------------------------------------------------------- Debtor: Spark Green Energy (Ahmednagar) Private Limited Plot No. B-4, Village Shingwetukai MIDC Newasa, Taluka Newasa Newasa, Maharashtra 414607 India Insolvency Commencement Date: November 16, 2021 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: May 14, 2022 (180 days from commencement) Insolvency professional: CA Suyash Rajendra Chhajed Interim Resolution Professional: CA Suyash Rajendra Chhajed 2nd Floor, Shree Gurudeo Tower Canada Corner, Ganpati Mandir Near Ahirrao Photo Studio Nashik, Maharashtra 422005 Mobile: 09373534040 Tel.: 0253 2319714 E-mail: suyashchhajed@gmail.com cirp.spark@gmail.com Last date for submission of claims: December 14, 2021 SRINIVASA STEEL: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Srinivasa Steel Products (SSP) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9.25 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 12, 2020, placed the rating(s) of SP under the 'issuer non-cooperating' category as SSP had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SSP continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 28, 2021, October 8, 2021, October 18, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). SSP was established in the year 2007 by Mr. S Ashokumar (Managing Partner), Mr. Bharat Kumar among other partners. SSP is engaged in the manufacturing of hot rolled steel stripes, Electric Resistance Welded (ERW) pipes and other steel Structural products. SSP is specialized in manufacturing of iron and steel structural products which are used in furniture, Racks and hoardings, etc. SSP sells ERW pipes and structural products to distributors across India. Raw material comprises steel and iron which are procured from local suppliers and hot rolled steel stripes manufactured are used in Manufacturing of ERW pipes and structural products. SUPREME EXPORTS: CARE Keeps C Debt Rating in Not Cooperating ------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Supreme Exports (SE) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 8.00 CARE C; Stable; ISSUER NOT Facilities COOPERATING; Rating continues To remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 10, 2020, placed the rating(s) of SE under the 'issuer non-cooperating' category as SE had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. SE continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 26, 2021, October 6, 2021, October 16, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Supreme Exports (SE) was established in the year 2000 and promoted by Mr. SHV Prasad and his spouse Ms. S Rama Sita. The firm is engaged in processing, packing and export of shrimp to various places like Vietnam, China, Singapore and Dubai. The product profile of the company includes black tiger, vannamei, scamp and white shrimp. The plant has the certification of 'Hazard Analysis Critical Control Point (HACCP)' and British Retail Consortium (BRC). The processing and storage facilities of SE are approved by the Marine Products Export Development Authority (MPEDA). SURYA-LANDMARK DEVELOPERS: Insolvency Resolution Case Summary ------------------------------------------------------------- Debtor: Surya-Landmark Developers Private Limited Registered office: 603, Nandlal CHS Ltd. Riddhi Palace S.V. Road, Borivali (West) Mumbai 400092 Maharashtra, India Principal office: Ganesh Manish CHS Office No. 2, 1st Floor S.V. Road Opp. Bank of Baroda Kandivali (West) Mumbai 400067 Maharashtra, India Insolvency Commencement Date: December 2, 2021 Court: National Company Law Tribunal, Mumbai Bench Estimated date of closure of insolvency resolution process: May 31, 2022 Insolvency professional: Mr. Prakul Thadi Interim Resolution Professional: Mr. Prakul Thadi Flat No. 1405, J Block Rainbow Vistas Green Hills Road Moosapet, Hyderabad 500018 Telangana, India E-mail: prakulthadi@hotmail.com - and - A-42, 2nd Floor Raj Industrial and Commercial Complex Military Road Marol, Andheri East Mumbai 400059 E-mail: cirp.suryalandmark@gmail.com Classes of creditors: Allottees under Real Estate Project Insolvency Professionals Representative of Creditors in a class: Ms. Padma Ganesh Mr. Ashok Mittal Mr. Nainesh Vinaykant Sanghavi Last date for submission of claims: December 18, 2021 THANGAVEL FABRICS: CARE Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Thangavel Fabrics Private Limited (TFPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 15.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 17.30 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 5, 2020, placed the rating(s) of TFPL under the 'issuer non-cooperating' category as TFPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. TFPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 21, 2021, October 1, 2021 and October 11, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Thangavel Fabrics Private Limited (TFPL) (erstwhile Thangavelu Fabrics Private Limited), is an Erode-based fabric manufacturer, established in January 2005, by merging four proprietorship concerns promoted by Mr. Thankavel. These proprietorship concerns were engaged in the manufacture of fabric since 1975. Currently, the company has three manufacturing units in Erode, Tamil Nadu with a total weaving capacity of 81 auto looms (approximately 25,000 meters per day) as of March 22, 2017. TFPL is a deemed exporter for brands like GAP, HNM, Lewi's, MNS, Next, Target, Marks & Spencers, Gloria Jeans and C&A. The promoters, family and friends collectively hold 100% shareholding in the company. TRADOHUB B2B LIMITED: Insolvency Resolution Process Case Summary ---------------------------------------------------------------- Debtor: Tradohub B2B Limited (Formerly known as Igenius E-Commerce Private Limited) A-906, Titanium City Center Near Sachim Towers 100 Feet Ring Road Ananadnagar, Satellite Ahmedabad 380015 Gujarat Insolvency Commencement Date: November 16, 2021 Court: National Company Law Tribunal, Ahmedabad Bench Estimated date of closure of insolvency resolution process: May 20, 2022 Insolvency professional: Sachin Naveen Sinha Interim Resolution Professional: Sachin Naveen Sinha N-203, Parshwanath Metro City Nr. H.B. Kapdia School Sakar Street, T.P. 44 Chandkheda, Ahmedabad 382424 Gujarat - and - A/25, C/o Ashutosh, Silver Arc Opp Pansikura Hotel 8/h Townhall, Ellisbridge Road Ahmedabad 380009, Gujarat E-mail: cirptradohub@gmail.com Last date for submission of claims: December 7, 2021 VELANI OILS: CARE Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Velani Oils Private Limited (VOPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 5.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Short Term Bank 45.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 12, 2020, placed the rating(s) of VOPL under the 'issuer non-cooperating' category as VOPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. VOPL continues to be non-cooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated September 28, 2021, October 8, 2021, October 18, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Velani Oils Private Ltd (VOPL) was incorporated on June 9, 2010 by its present promoter director Mr. Mansukh Lal Patel and his son Mr. Tushar Patel. The company is engaged in the business of trading edible and non-edible oils for supplying it to large edible/ non-edible oil refining companies in India. VOPL was operating as partnership firm (Velani Oil Traders) since 1966, with the present directors as its partners and the constitution was changed from partnership firm to a private limited company w.e.f. June 9, 2010 while the name was changed from Velani Oil Traders (VOT) to Velani Oils Pvt. Ltd. (VOPL). The company sources oil domestically as well as imports from Indonesia, Malaysia and South America and supplies to various FMCG & other companies in India. The company started its imports from 2007. VOPL operates from its Head office (HO) in Delhi and branch offices in Gujarat in Gandhidham and Kandla. VHV BEVERAGES: CARE Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of VHV Beverages Private Limited (VBPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 16.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Detailed Rationale & Key Rating Drivers CARE had, vide its press release dated November 25, 2020, placed the rating(s) of VBPL under the 'issuer non-cooperating' category as VBPL had failed to provide information for monitoring of the rating and had not paid the surveillance fees for the rating exercise as agreed to in its Rating Agreement. VBPL continues to be noncooperative despite repeated requests for submission of information through e-mails, phone calls and a letter/email dated October 11, 2021, October 21, 2021, October 31, 2021. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE's opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Haryana-based VHV was incorporated in 2012 and is currently being managed by Mr. Vinod Sehwag, Mrs Homi and Mrs Pooja Malhotra. The company is engaged in the manufacturing of fruit beverages, soda and mineral water. The main raw materials, ie, fruit pulp, along with others like plastic caps, bottles, carbon dioxide are procured from manufacturers based in Haryana region. The company is currently selling the product pan India covering regions namely Haryana, Rajasthan, Punjab, Uttar Pradesh and Delhi, Kerala, Maharashtra, Gujarat and West Bengal through a dealer network under the brand name XALTA. ================= I N D O N E S I A ================= BANK PAN: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable --------------------------------------------------------- Fitch Ratings has affirmed Indonesia-based P.T. Bank Pan Indonesia Tbk's (Panin) Long-Term Issuer Default Rating (IDR) at 'BB'. The Outlook is Stable. At the same time, Fitch has withdrawn Panin's Support Rating and Support Rating Floor, as they are no longer relevant to the agency's coverage following the publication of Fitch's updated Bank Rating Criteria on 12 November 2021. In line with the updated Criteria, Fitch has assigned Panin a Government Support Rating (GSR) of 'bb'. KEY RATING DRIVERS IDRS AND VIABILITY RATING Panin's Long-Term IDR is driven by its Viability Rating (VR), which has been affirmed in line with its implied VR at 'bb'. The VR reflects Fitch's view of the bank's standalone credit profile, as characterised by a moderate business profile, above-average risk profile, adequate funding and liquidity, and weaker-than-peer asset quality and profitability that is counterbalanced by a satisfactory capital position. Fitch expects Indonesia's economic recovery - as reflected in Fitch's real GDP growth forecast of above 6% in 2022, from around 3.2% in 2021 - to improve business prospects for domestic banks in 2022. Fitch believes the largest banks, including Panin, are well placed to take advantage of stronger conditions. The large banks' financial profiles should remain resilient, helped by an extension of regulatory forbearance on loan classifications to end-1Q23. Fitch has maintained the 'bb+' operating environment (OE) score for Indonesian banks with a stable outlook. The implied OE category score for local banks is 'b', but Fitch has adjusted the score upwards due to Indonesia's sovereign rating of 'BBB'/Stable to reflect greater market and macroeconomic stability than is captured in the implied score. Fitch has maintained Panin's asset quality score at 'bb-' and revised the factor outlook to stable, from negative, as Fitch believes downside risks have reduced for asset quality as the economy recovers. Its non-performing loan ratio rose to 3.5% by end-9M21 (end-2020: 3.0%), but remains in line with the industry average of around 3.1%. Pressure on credit quality is mostly visible in the bank's restructured loan ratio of 26.8%, which is among the highest in its peer group of Indonesia's 12-largest banks, although the ratio is down from a peak of almost 32% by end-2020. Around 79% of restructured loans were classified as 'current' at end-9M21, benefiting from the relaxed regulation. Panin's loan loss allowance coverage ratio of 149% was below the peer average of 217%, but this is mitigated by its predominantly secured lending portfolio. Fitch has maintained the profitability and earnings score at 'bb-' with a stable outlook, as Fitch believes the bank will maintain its four-year average operating profit/risk-weighted assets ratio (end-9M21 annualised: 2.5%; peer average: 3.3%) within the range for an implied 'bb' category score of 1.25% to 4.75%. Fitch expects Panin's profitability to benefit from lower credit costs in 2022, but believe it will continue to lag the larger banks because its weaker deposit franchise results in higher funding costs than at peers. Panin's moderate loan growth and policy of not paying dividends should continue to support its capitalisation and Fitch has maintained its capitalisation and leverage score at 'bbb-'. Panin's common equity Tier 1 capital ratio of 27.8% at end-9M21 (2020: 27.0%) was significantly above its peer average of 21.8%. Ample system liquidity stemming from looser monetary policy and other stimulus measures has improved most of Panin's funding and liquidity metrics since the outbreak of the pandemic - similarly to peers. Its loan/deposit ratio of 93% (2019: 116%) remained above the industry average of around 80%. Its liquidity coverage and net stable funding ratios of 248% and 141%, respectively, were considerably higher than the minimum regulatory requirement of 85%. Fitch has maintained its funding and liquidity score at 'bb' with a stable outlook and expect the bank's greater reliance on higher-cost time deposit funding than peers (9M21: 56% of total deposits, industry: 41%) to continue in the medium term due to strong deposit competition from larger banks. Panin is a family-controlled, mid-sized bank that provides loans to corporate (around 43% of total loans), commercial (primarily SMEs, 32%), retail (19%) and sharia (6%) borrowers. Australia and New Zealand Banking Group Limited (A+/Stable/a+) holds 38.82% of Panin's shares, but has a passive role in the bank. Panin's business profile score at 'bb' is in line with its implied category score. GSR Panin's GSR reflects Fitch's view of a moderate probability of extraordinary government support being made available, if needed. Fitch believes Panin has systemic importance to Indonesia, as it is the country's ninth-largest bank, with a share of around 2.1% of industry assets. Fitch's view of support also takes into account Panin's customer deposit-dominated funding profile and majority ownership by domestic shareholders. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: IDRS AND VR -- A downgrade of the VR could stem from significant deterioration in Panin's financial position, but this would only occur amid downward revisions of multiple key rating drivers based on Fitch's view of buffers at the current rating level. -- This would be likely to depend on a combination of non performing, 'special-mention' and restructured loan ratios deteriorating by more than Fitch expecst under its base case, the bank's four-year average operating profit/risk-weighted assets ratio falling to below 1.25% on a sustained basis, and a persistent weakening of the bank's funding and liquidity position, probably reflected in a continued rise in the proportion of higher-cost funding sources and tight liquidity buffers above minimum requirements. -- Negative rating action could also be triggered by a prolonged and severe economic disruption from the coronavirus pandemic than Fitch currently expects. -- As Panin's IDR is at the same level as its GSR, the IDR would not be affected by a downgrade of its VR unless it is accompanied by a downgrade of its GSR. GSR -- A downgrade of Indonesia's sovereign rating or a perceived weakening of support propensity from the government could lead to a downgrade of Panin's GSR. However, its IDR would only be affected if, at the same time, Fitch also downgraded the bank's VR. Factors that could, individually or collectively, lead to positive rating action/upgrade: IDRS AND VR -- An upgrade of the VR and, in turn, the IDR would depend on sustained improvements in multiple key rating drivers; for example, if its core ratios in funding and liquidity, asset quality, and earnings and profitability were more in line with those of higher-rated peers. -- This would involve the bank's proportion of lower-cost funding sources rising above the industry average, while maintaining its non-performing, 'special-mention' and restructured loan ratios in line with those of higher-rated peers, and its four- year average operating profit/risk-weighted assets ratio at the higher end of the 1.25% to 4.75% range. -- However, Fitch believes such a prospect is unlikely without a strengthening of the bank's business and risk profiles to be more comparable with those of larger domestic banks. Fitch does not expect this to happen in the near- to medium-term. A higher OE score could also be positive for the VR. GSR -- An upgrade of the GSR could result from an upgrade of Indonesia's sovereign rating or Fitch's view of an increased support propensity from the government. This would also lead to an upgrade of its Long-Term IDR, which would then be support-driven. VR ADJUSTMENTS -- The OE score has been assigned above the implied category score due to the following adjustment reason: sovereign rating (positive). BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. CHANDRA ASRI: Fitch Affirms & then Withdraws 'BB-' Rating --------------------------------------------------------- Fitch Ratings has affirmed Indonesia-based PT Chandra Asri Petrochemical Tbk's (CAP) Long-Term Issuer Default Rating at 'BB-' with a Stable Outlook. Fitch has simultaneously withdrawn the rating. CAP is rated on a standalone basis, as Fitch views the access and control by PT Barito Pacific Tbk, which holds 38% of CAP, as porous and the legal ring-fencing as open under Fitch's Parent Subsidiary Linkage (PSL) Rating Criteria. CAP's rating is currently one notch above Barito's consolidated group profile of 'b+' in line with the PSL criteria. CAP's rating reflects its leading market position, integrated operation, diverse product offering and strong financial profile, which are balanced by its presently limited operating scale compared with global chemical peers and the cyclical nature of the petrochemical industry. CAP's credit profile remains constrained, due to the uncertainties pertaining to the its new petrochemical facility (CAP2 project) for which CAP aims to make a final investment decision (FID) in 2022. Fitch has chosen to withdraw the ratings on CAP for commercial reasons and will no longer provide ratings of analytical coverage of the issuer. KEY RATING DRIVERS CAP2 Decision Pending: Fitch expects CAP's credit metrics to remain adequate for its ratings over the next three years. However, its credit metrics could come under pressure once capex for CAP2 gathers pace, depending on the investment plans. Fitch expects greater clarity on these once the FID is completed. CAP expects to spend around USD5 billion on CAP2, which will nearly double the company's production capacity. CAP has secured the front-end engineering and design contractors, and has invested about USD300 million of initial capex into the project. Strong Credit Metrics Till 2024: Fitch expects CAP to remain in a net cash position over the next two years, supported by USD1.1 billion of equity raised in 2021 through a rights issue, even as it undertakes the construction of CAP2 from 2022. The equity proceeds would be used to fund CAP2, and the company plans to raise another USD377 million of equity upon the completion of the FID. Fitch expects CAP2's remaining investment to be funded via debt towards the later stages of the development, which would increase CAP's leverage from 2024. Product Spreads to Moderate: Fitch expects CAP's EBITDA to increase to about USD380 million in 2021 (2020: USD187 million), helped by strong petrochemical spreads and robust local demand. Fitch, however, expects CAP's petrochemical spreads to moderate in the medium to long term from 2021, due to Asian petrochemical capacity additions, resulting in annual EBITDA of USD300 million-330 million over the next three to four years. CAP also has been able to record higher spreads generally, as it benefitted from domestic premium compared to other regional peers given its diverse product offering and long-term customer relationships. It also benefits from a diversified supplier base, while its association with SCG Chemicals Co., Ltd. (SCGC, A+(tha)/Stable) and Thai Oil Public Company Limited (TOP, A+(tha)/Negative) - its shareholders -helps its feedstock procurement. Leading Market Position; Integrated Operation: CAP's SCP benefits from its leading market position as Indonesia's largest petrochemical producer, accounting for about 35% of the country's olefin and polymer production capacity. Its market position is also aided by better-integrated operations than those of domestic peers as well as a diverse product offering and customer base. This, together with its plant being located close to key customers with pipeline connectivity to some, will continue to support higher realisations and profitability. Open Ring Fencing: CAP has some borrowing facilities with some ring-fencing mechanisms that limit cash outflows; however, the nature and relatively modest size of these borrowings (amounting to USD136 million in September 2021) together with CAP's net cash position can limit their effectiveness, in Fitch's view. Porous Access and Control: While Barito is the largest shareholder in CAP, there are significant minority shareholders: SCGC with a 31% stake and TOP with a 15% share. The Barito group's effective ownership of CAP fell to 46.2% in 3Q21, from 59.9%, following CAP's right issue, during which TOP acquired 15% of CAP. Barito's ability to extract large shareholder returns from CAP is limited by SCGC and TOP together having a representation equal to Barito in CAP's board and the large capex for CAP2. Fitch expects CAP to declare dividends in line with its policy and do not expect any extraordinary shareholder returns, in light of its proposed CAP2 investment. Barito's 'b+' Group Profile: Fitch assesses Barito's consolidated group credit profile at 'b+', reflecting its diversified businesses and modest financial profile. The group has presence across the petrochemical (via CAP) and energy sector (via Star Energy), with long-term contracts driving stable revenue for Star Energy. Group Leverage to Rise from 2024: Fitch expects the Barito group's net leverage, measured by net debt/EBITDA with CAP and Star Energy proportionately consolidated, to remain below 4x until 2024, and then rise above 4.5x along with the increase in debt required to complete CAP2. Its holding- company EBITDA interest cover should remain modest averaging around 1.7x until 2024. DERIVATION SUMMARY CAP's ratings reflect its presently small scale, leading market position in Indonesia, integrated operation, diverse product offering and strong financial profile. Ineos Group Holdings S.A.'s (BB+/Stable) ratings reflect its position as one of the world's largest petrochemical producers, with leading market positions in Europe and the US. It manufactures a wide range of olefin derivatives serving diverse end-markets, operates large-scale integrated production facilities with partial feedstock flexibility, and exhibits solid pre-dividend FCF. CAP's smaller scale and limited geographical diversification results in its rating being lower by two notches, despite a stronger financial profile. PJSC Kazanorgsintez (BB-/Stable) is one of Russia's largest chemical companies and the country's largest polyethylene producer. Kazanorgsintez's rating benefits from a notch of uplift from its SCP due to linkages to its parent, PAO SIBUR Holding's (BBB-/Stable). Fitch believes CAP's more diversified product profile and larger size justifies the one-notch difference from Kazanorgsintez's SCP of 'b+', despite the Russian company's stronger financial profile. KEY ASSUMPTIONS -- Product margins (spreads) in 2021 broadly reflect realisations in 9M21, and will gradually moderate thereafter. -- Sales volumes of around 2,200 kilotonnes in 2021 and for the forecast horizon to 2025 from CAP's existing operations. -- Capex for existing operations of USD52 million in 2021 and USD75 million a year thereafter. -- Annual dividend payout ratio of 40% of net profits from 2022 -- USD4.7 billion of new capex to be incurred on CAP2 from 2022 to 2026, with higher spending at the tail end -- Equity inflow of USD377 million in 2022 upon FID of CAP2 RATING SENSITIVITIES Rating sensitivities are no longer relevant as the rating is 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. LIQUIDITY AND DEBT STRUCTURE Net Cash Position: At end-September 2021, CAP had USD1.68 billion of cash compared with total debt of USD912 million. CAP also repaid its outstanding US dollar notes in November 2021. Fitch expects that CAP would not require any significant additional borrowings until it is midway through the construction of CAP2, which should support its strong liquidity over the next two years. ISSUER PROFILE CAP is the largest integrated petrochemical producer in Indonesia with integration from upstream cracker to downstream polyolefin products. 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. Following the withdrawal of ratings for CAP, Fitch will no longer be providing the associated ESG Relevance Scores. ========= J A P A N ========= MITSUBISHI MOTORS: S&P Alters Outlook on 'BB' ICR to Stable ----------------------------------------------------------- S&P Global Ratings has revised to stable from negative its outlook on the 'BB' long-term issuer credit rating on Mitsubishi Motors Corp. S&P also affirmed the long-term issuer credit rating. S&P said, "The outlook revision is based on our view that it has become increasingly likely that the company's EBITDA margin will recover to over 5% in the next one to two years, thanks to efforts to improve profitability. It also reflects our expectation that the automaker will generate positive free operating cash flow (FOCF) steadily and maintain its financial soundness." Mitsubishi Motors' EBITDA margin is likely to recover to 5%-6% in fiscal 2021 (ending March 31, 2022) and continue improving moderately; it turned negative in fiscal 2020 due to weakened profitability and the costs of restructuring. The company achieved a 20% reduction in fixed expenses in fiscal 2020 from fiscal 2019 by reducing indirect labor costs, freezing development of new models aimed at European markets, and lowering expenses such as outsourcing costs. It will introduce competitive new models and curb incentives, which S&P expects will improve earnings per vehicle. The recovery in profitability will also be supported by an uptick in new vehicle sales in Southeast Asia, its key market, from this fiscal year onward. S&P said, "We see only a limited possibility that the company's profitability will weaken materially, despite difficult business conditions. The impact of an ongoing semiconductor shortage may linger into the second half of 2022, but the company aims to soften the blow of scaled-back production by securing chip inventory through negotiations with suppliers. Soaring costs of raw materials, including precious metals such as rhodium and palladium, will have a relatively small impact on Mitsubishi Motors' profitability compared with peers that have greater exposure to European markets with tighter environmental regulations. Mitsubishi Motors uses comparatively smaller volumes of such materials. Furthermore, the effect of the weaker yen should underpin the company's earnings. "We expect Mitsubishi Motors to generate FOCF of about JPY5 billion-JPY25 billion in the automobile business and maintain a sound financial base in the next one to two years. Free cash flow in its automotive business was negative by about JPY50 billion in the first half of fiscal 2021, owing to temporary factors such as restructuring costs. But it is likely to turn positive to about JPY5 billion-JPY10 billion per year, thanks to an improvement in operating cash flow in the second half of fiscal 2021. In the next one to two years, we expect operating cash flow in the automobile segment to recover to JPY80 billion-JPY110 billion a year amid a recovery in profitability. We anticipate the company will curb annual capital expenditures to about JPY75 billion-JPY85 billion and refrain from any significant business expansion under its conservative financial management. Accordingly, we expect net cash of the automobile business to recover to above JPY150 billion in the next one to two years from about JPY140 billion as of Sept. 30, 2021. The company is likely to maintain positive free cash flow on an annual basis after shareholder returns." S&P assumes the following under our base-case scenario. -- Growth in global new car sales of 2%-4% in 2021 and 4%-6% in 2022 -- Growth in new car sales in the U.S. of 9%-10% in 2021 and 5%-7% in 2022 -- Growth in new car sales in Southeast Asia of 1%-3% in 2021 and 4%-6% in 2022 -- Growth of the company's new car sales of 20%-25% in fiscal 2021 and 2%-5% in fiscal 2022 -- Annual capital expenditures for its automobile business of JPY75 billion-JPY85 billion in the next one to two years -- Annual FOCF from its automobile business of JPY5 billion-JPY25 billion in the next one to two years S&P said, "The stable outlook reflects our view that there is only a limited possibility of a material deterioration of Mitsubishi Motors' EBITDA margin in the next one to two years as its earnings per vehicle improve and new car sales in Southeast Asia recover. The outlook is also based on what we consider to be a limited possibility of a material weakening of profitability due to external factors, as well as a high likelihood that the company will maintain its conservative financial management." S&P may consider a downgrade if any of the following scenarios occur. The EBITDA margin deteriorates below 4% and is unlikely to recover quickly. Specifically, this could occur if COVID-19 infections increase again and the recovery of auto sales in Southeast Asia is delayed. S&P sees a prospect of significant negative free cash flow in its automotive business persisting due to large investment and there is a growing likelihood that financial soundness weakens. S&P said, "We may consider an upgrade if the company's EBITDA margin hovers above 6% consistently as its profitability improves further while its car sales in Southeast Asia recover, and we have stronger expectations that it will maintain positive free cash flow after shareholder returns." =============== M A L A Y S I A =============== KNM GROUP: Triggers PN17 But Not Classified as Affected Issuer -------------------------------------------------------------- The Edge Markets reports that KNM Group Bhd has announced that the company has been granted Practice Note 17 (PN17) relief measures in relation to the issuance of Thai bonds, resulting in the company triggering suspended criteria and will not be classified as PN17 affected listed issuer. In a filing with Bursa Malaysia on Dec. 6, it said on Dec. 3, KNM has triggered an event of default on the principal payment of the bonds issued in Thailand amounting to THB2.78 billion which had matured on Nov. 18, 2021, The Edge relates. Under the terms and conditions of the bonds, it said KNM has up to 14 days after the maturity date to pay the principal amount and up to 21 days after the maturity date to pay any amount of interest in respect of the Thai Bonds, failing which, an event of default would occur. "The Thai bonds are guaranteed by Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank. "If the event of default has occurred, and upon a demand being made by Bank of Ayudhya Public Company Ltd to CGIF, CGIF shall within 10 business days after receipt of the demand, pay the bank the outstanding amount," it said, The Edge relays. However, Bursa Malaysia had on June 16 granted affected listed issuers relief from July 1 to Dec. 31, 2021. Under the PN17 relief measures, the company said an affected listed issuer that triggers any of the PN17 suspended criteria during the relief period would not be classified as a PN17 listed issuer and will not be required to comply with the obligations of the Main Market Listing Requirements of Bursa Malaysia (MMLR) for 18 months from the date of triggering the criteria. "However, the affected listed issuer must immediately announce that it has triggered the PN17 suspended criteria and the relief provided," it added. KNM Group Berhad is engaged in investment holding and provision of management services. The Company's segments include Asia and Oceania, Europe and America. The Asia and Oceania segment includes Malaysia, Thailand, China, India, Singapore, Indonesia, Australia and Uzbekistan. The Europe segment includes British Virgin Islands, the United Arab Emirates, the Netherlands, Saudi Arabia, Italy, the United Kingdom, Germany and Isle of Man. The America segment includes the United States and Canada. ===================== N E W Z E A L A N D ===================== ASI TRANSPORT: Creditors' Proofs of Debt Due on Jan. 21 ------------------------------------------------------- Creditors of ASI Transport Limited, which is in liquidation, are required to file their proofs of debt by Jan. 21, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Nov. 29, 2021. The company's liquidator can be reached at: Paul Vlasic Derek Ah Sam Rodgers Reidy (NZ) PO Box 45220, Te Atatu Peninsula Auckland 0651 New Zealand FALCONER CORPORATE: Court to Hear Wind-Up Petition on Dec. 15 ------------------------------------------------------------- A petition to wind up the operations of Falconer Corporate Limited will be heard before the High Court at Rotorua on Dec. 15, 2021, at 10:00 a.m. Northwood Limited filed the petition against the company on Oct. 11, 2021. The Petitioner's solicitor is: Maria Taylor PO Box 247 Shortland Street, Auckland New Zealand NZ LIVING: Creditors' Proofs of Debt Due on Jan. 10 --------------------------------------------------- Creditors of NZ Living Northcote Limited, which is in liquidation, are required to file their proofs of debt by Jan. 10, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Nov. 29, 2021. The company's liquidator can be reached at: Andrew McKay and Rees Logan BDO Auckland, Level 4, BDO Centre 4 Graham Street Auckland 1010 New Zealand PASTA NOSTRA: Members' Final Meeting Set for Dec. 10 ---------------------------------------------------- Creditors of Pasta Nostra Limited and Pasta Nostra Management Limited will hold their first meeting on Dec. 10, 2021, at 2:00 p.m., via audio/visual electronic means. Agenda of the meeting includes: a. to decide whether to replace the administrator; b. to appoint a creditors committee and if so to appoint its members; c. to receive and consider the directors' statement of the company's position; and d. submit and consider an overview of the conduct of the administration. Bryan Edward Williams of BWA Insolvency was appointed administrator of the companies on Dec. 1, 2021. The administrator can be reached at: Bryan Williams BWA Insolvency Limited PO Box 609, Kumeu 0841 New Zealand ================= S I N G A P O R E ================= LENDLEASE RETAIL: Creditors' Proofs of Debt Due on Jan. 3 --------------------------------------------------------- Creditors of Lendlease Retail Investments 1 Pte Ltd, which is in voluntary liquidation, are required to file their proofs of debt by Jan. 3, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Nov. 26, 2021. The company's liquidators are: Bob Yap Cheng Ghee Toh Ai Ling c/o 16 Raffles Quay #22-00 Hong Leong Building Singapore 048581 NVSAGE PTE: Creditors' Proofs of Debt Due on Jan. 3 --------------------------------------------------- Creditors of NVSAGE Pte Ltd, which is in voluntary liquidation, are required to file their proofs of debt by Jan. 3, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Nov. 26, 2021. The company's liquidators are: Lin Yueh Hung Oon Su Sun c/o 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095 PARK HOTEL CQ: Court Enters Wind-Up Order ----------------------------------------- The High Court of Singapore entered an order on Nov. 19, 2021, to wind up the operations of Park Hotel CQ Pte. Ltd. Park Hotel Management Pte. Ltd filed the petition against the company. The company's liquidators are: Mr. Aw Eng Hai Mr. Kon Yin Tong c/o Foo Kon Tan LLP 24 Raffles Place, #07-03, Clifford Centre, Singapore 048621 SWF KRANTECHNIK: Creditors' Proofs of Debt Due on Jan. 4 -------------------------------------------------------- Creditors of SWF Krantechnik Pte Ltd, which is in voluntary liquidation, are required to file their proofs of debt by Jan. 4, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Nov. 30, 2021. The company's liquidators are: Goh Yeow Kiang Victor Khor Boon Hong 600 North Bridge Road #05-01 Parkview Square Singapore 188778 ============= V I E T N A M ============= ASIA COMMERCIAL: Fitch Raises LT IDR to 'BB-', Outlook Stable ------------------------------------------------------------- Fitch Ratings has upgraded the Long-Term Issuer Default Rating (IDR) on Vietnam-based Asia Commercial Joint Stock Bank (ACB) to 'BB-' from 'B+'. The Outlook is Stable. Fitch has also upgraded its Viability Rating to 'bb-' from 'b+'. Fitch is withdrawing ACB's Support Rating and Support Rating Floor as they are no longer relevant to the agency's coverage following the publication of Fitch's updated Bank Rating Criteria on 12 November 2021. In line with the updated criteria, Fitch has assigned ACB a Government Support Rating (GSR) of 'b'. KEY RATING DRIVERS IDRS AND VR ACB's Long Term IDR is driven by its VR. The upgrade on the bank's VR is driven by Fitch's assessment that Vietnam's banking system operating environment (OE) factor score has returned to a pre-pandemic level of 'bb-' with stable outlook as the economic impact from the Covid-19 pandemic has been substantially less severe than Fitch had originally expected. Vietnam's economy underwent notable deceleration in 2020 and 2021, but Fitch believes its medium-term fundamentals remain intact and growth prospects remain strong. The upward revision of the OE score has led us to reassess the other key rating drivers, consistent with Fitch's Bank Rating Criteria, which discriminate financial profile scores depending on the OE category score. The supportive economic environment has over the years benefitted ACB's credit profile and Fitch expects it to continue support the bank's asset quality and profitability, which are above the peer average, over the next 12 months. The rating also considers the bank's high proportion of secured lending; moderate, albeit improving, capitalisation; as well as its status as a mid-sized bank in Vietnam, with market share of about 3% in system assets and loans. Fitch has revised the bank's business profile score to 'b+'/stable from 'b'/stable amid gradual improvement in its share of system loans and assets in recent years, which indicates its growing franchise as one of the leading private-sector banks in Vietnam. ACB is a retail-centric bank based in southern Vietnam that targets the upper mass-market segment. The retail banking portfolio accounts for around 62% of its loans and 80% of its deposits. ACB's reported non-performing loan (NPL) ratio rose to 0.8% by end-September 2021 from 0.6% at end-2020 following a GDP contraction in 3Q21. ACB's asset-quality metrics continue to benefit from regulatory forbearance, which allows banks to avoid classifying exposures affected by the pandemic as NPLs. ACB's NPL ratio remains the lowest among its local rated peers despite the deterioration, and Fitch believes its asset quality will continue to outperform its peers, given its focus on higher-income borrowers and a high degree of collateralisation. Therefore, Fitch has upgraded the bank's asset quality score to 'bb-'/stable from 'b+'/stable. Fitch has revised the bank's earnings and profitability score to 'bb-'/stable from 'b+'/stable as the OE score has moved into the 'bb' category. Fitch expects the bank's profitability to improve gradually in 2022, as some pressure in net interest margins is likely to be offset by a decline in credit provisions, higher loan volume, and sustained strong growth in its bancassurance businesses. ACB's operating profit/risk-weighted assets is higher than its local rated peers' average, helped by its better asset quality and larger proportion of higher-yielding retail loans. Fitch raised the bank's capitalisation and leverage score to 'b+'/stable from 'b'/stable. ACB's Fitch Core Capital ratio continued to improve gradually to 10.9% at September 2021, but remained moderate in the context of risks in the operating environment. Nonetheless, its capital ratio is higher than that of state-owned peers thanks to better internal capital generation, which has also outpaced the growth in risk-weighted asset in the past few years. Fitch expects this trend to continue, aiding capitalisation. However, any improvement in capital ratios is likely to be tempered by its high loan-growth targets and capital-management approach. Fitch has revised up the bank's funding and liquidity score to 'bb-'/stable from 'b+'/stable in line with the higher OE score. The bank's loan-to-deposit ratio of 92% at end-September 2021 indicates a satisfactory liquidity position. Customer deposits accounted for around 87% of its funding, with current and savings accounts and retail deposits comprising roughly 23% and 80% of its total deposit base, respectively, which provides a degree of funding stability. Foreign-currency deposits account for only about 3% of its total deposits. Fitch affirmed the Short-Term IDR on ACB at 'B' which corresponds with a 'BB' category Long-Term IDR, consistent with Fitch's Bank Rating Criteria. GOVERNMENT SUPPORT RATING ACB's GSR of 'b' reflects Fitch's view of a limited probability of extraordinary support from the state, in times of need. Fitch's view takes into consideration the bank's modest size and systemic importance, with market share of around 3% in system assets, as well as the banking system's size relative to GDP, and the state's fiscal flexibility to provide support - as reflected in the sovereign rating of 'BB' with Positive Outlook. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: IDRS AND VR Fitch may downgrade the bank's VR and IDR should any of the following occur: -- NPL ratio rises above 1% for a sustained period. -- Operating profit/risk-weighted assets below 2% for a prolonged period. This could occur should Fitch sees sustained economic weakness, which is not Fitch's base-case scenario. The Short-Term IDR is unlikely to be downgraded unless the Long-Term IDR was downgraded by four or more notches. GSR -- Deterioration in the sovereign's ability to support the bank, which may be reflected in negative action on the sovereign rating, may lead us to downgrade the bank's GSR. This is unlikely as Fitch has a Positive Outlook on the sovereign rating. Factors that could, individually or collectively, lead to positive rating action/upgrade: IDRS AND VR -- The bank's VR is currently at the same level as its OE score. This means that the likelihood of an upgrade is limited as the OE score typically constrains Fitch's assessment of the majority of business and financial profile scores for banks in the jurisdiction. -- Fitch will need to see sustained, structural improvements in the operating environment to consider raising the banking system OE score further. -- The Short-Term IDR is unlikely to be upgraded unless the Long- Term IDR was upgraded by three or more notches. GSR -- ACB's GSR is sensitive to perceived changes in the sovereign's ability and propensity to support the bank. A sovereign rating upgrade that is not coupled with a large increase in system leverage may lead to a corresponding upgrade in the bank's GSR. VR ADJUSTMENTS The Operating Environment score has been assigned above the implied score due to the following adjustment: Economic Performance (positive) The Business Profile score has been assigned below the implied score due to the following adjustment reason: Market Position (negative) The Asset Quality Score has been assigned below the implied score due to the following reason: Loan Classification Policies (negative) BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ESG CONSIDERATIONS ACB has an ESG Relevance Score of '4' for Governance Structure due to its evolving corporate governance framework as indicated, for example, by its low independent director representation, which has a negative impact on the credit profile, and is relevant to the rating in conjunction with other factors. This is, however, a common trait of many Vietnamese banks. ACB has an ESG Relevance Score of '4' for Financial Transparency due to Fitch's assessment that Vietnamese banks' financial disclosures are generally lacking relative to other higher-rated jurisdictions, which has a negative impact on the credit profile, and is relevant to the rating in conjunction with other factors. This is, however a feature that Fitch believes is shared by many of its peers in Vietnam. 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. MILITARY COMMERCIAL: Fitch Affirms 'B+' LT IDR, Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed Military Commercial Joint Stock Bank's (MB) Long-Term Issuer Default Rating (IDR) at 'B+'. The Outlook is Stable. At the same time, Fitch is withdrawing MB's Support Rating and Support Rating Floor, as they are no longer relevant to the agency's coverage following the publication of Fitch's updated Bank Rating Criteria on 12 November 2021. In line with the updated criteria, Fitch has assigned MB a Government Support Rating (GSR) of 'b'. KEY RATING DRIVERS IDRs and VIABILITY RATING MB's Long-Term IDR is driven by its standalone credit profile, as indicated by its Viability Rating. It also takes into account Fitch's assessment of the banking system's operating environment (OE), whose score Fitch has returned to the pre-Covid-19 pandemic level of 'bb-'/stable, from 'b+'/stable, as well as MB's steady asset quality, stable funding profile and above-average profitability. This is counterbalanced by risks associated with rapid loan growth, moderate - albeit improving - capital buffers and a modest market position in Vietnam as a mid-sized bank, with a 3%-4% market share in system loans and assets. The higher OE factor score reflects Fitch's assessment that business conditions have been substantially less severe than Fitch had initially expected at the onset of the pandemic. Fitch believes Vietnam's promising economic fundamentals remain intact and forecast that GDP growth will return to pre-pandemic levels in 2022. The supportive economic environment has benefitted MB's credit profile over the last few years and the better economic outlook should continue to lift the bank's revenue and keep asset quality in check in the next 12 months. The higher OE score has led to an upward revision of some financial scores. This is consistent with Fitch's Bank Rating Criteria, which determine financial profile scores based on the OE category score. Fitch has revised the business profile score to 'b+'/stable, from 'b'/stable, amid improved franchise strength, as indicated by MB's growing market share in loans and asset in recent years. The bank counts some large state-owned enterprises as its shareholders. These include Viettel Group, Vietnam's largest telecommunications company, State Capital Investment Corporation, Vietnam Helicopter Corporation and Saigon New Port Corporation. Fitch believes these linkages support MB's funding franchise and overall business profile. MB's non-performing loan (NPL) ratio of 0.9% as at September 2021 was steady relative to its end-2020 level of 1.1%, despite the severe pandemic-related economic shock in 3Q21. This was in part due to the bank's steady risk controls, but also a rapidly growing loan book that limited the rise in the reported problem loan ratio. Fitch expects near-term asset quality to remain steady, with pre-emptive provisioning buoying loan loss allowances to 2.2% of loans, from 1.5% at end-2020, and an improving economy helping to limit the deterioration in loan quality. Against this backdrop and higher OE, Fitch has raised the bank's asset quality score to 'b+'/stable, from 'b'/stable. Fitch has also raised the earnings and profitability score to 'bb-'/stable, from 'b+'/stable, based on the higher OE score. Fitch expects MB's risk-adjusted returns to improve modestly in 2022 as credit charges trend lower and business volume picks up. Profitability has generally been better than at local rated peers and Fitch expects this outperformance to persist in the near-term thanks to MB's high-margin business and rising bancassurance revenue, which contributed 21% of total income in 9M21 (2017: 3%). The revised OE score has also led to a higher capitalisation and leverage score of 'b+'/stable, from 'b'/stable. Core capitalisation, as indicated by MB's Fitch Core Capital (FCC) ratio of 10.4% as at September 2021, is modest compared with similarly rated international peers and relative to the prevailing risks in Vietnam's OE. That said, internal capital generation has kept up with or slightly outpaced risk-weighted asset growth in recent years, and Fitch expects this trend to continue in the near term, helping support MB's capital level. Fitch has raised the funding and liquidity score to 'bb-'/stable', from 'b+'/stable, due to the higher OE score. MB's funding and liquidity profile remains satisfactory, as reflected in a loans/deposits ratio of 86% at end-September 2021. The bank is largely deposit funded, with customer deposits making up 84% of total funding - the majority of which is in the local currency - providing a degree of funding stability. Fitch expects funding and liquidity conditions to remain supportive in the near term, with the central bank acting as backstop should conditions unexpectedly tighten. Fitch affirmed the Short-Term IDR on MB at 'B', which corresponds with a 'B' category Long-Term IDR, consistent with Fitch's Bank Rating Criteria. GSR The GSR reflects Fitch's view of a limited probability of extraordinary support from the state in times of need. This takes into consideration MB's modest market share, the banking system's large size relative to GDP and the state's fiscal flexibility to extend support, as reflected in the sovereign rating of 'BB'/Positive. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: IDRS,VIABILITY RATING The Long-Term IDR and Viability Rating could be downgraded if all of the following were to occur: -- The NPL ratio were to rise above 1.5% and remain so over a prolonged period. -- Operating profit/risk-weighted assets were to fall to below 2% on a sustained basis. This could occur amid continued economic weakness, which Fitch believes is unlikely in the near term. Fitch may also downgrade the ratings if the FCC ratio was to fall below 8% on a sustained basis. The Short-Term IDR is unlikely to be downgraded unless the Long-Term IDR is downgraded by three or more notches. GSR -- A downgrade in the sovereign rating may lead us to downgrade the bank's GSR. Factors that could, individually or collectively, lead to positive rating action/upgrade: IDRS, VIABILITY RATING The Long-Term IDR and Viability Rating could be upgraded if both of the following were to occur: -- The NPL ratio were to continue to trend below 1% over a prolonged period -- The FCC ratio improves in excess of 12% over a sustained period The Short-Term IDR is unlikely to be upgraded unless the Long-Term IDR is upgraded by four or more notches. GSR -- The GSR is sensitive to Fitch's assessment of the sovereign's ability and propensity to support the bank. A sovereign rating upgrade may lead to a corresponding revision of the bank's GSR. VR ADJUSTMENTS -- The OE score has been assigned above the implied score due to the following adjustment: economic performance (positive). -- The business profile score has been assigned below the implied score due to the following adjustment: market position (negative). -- The asset quality score has been assigned below the implied score due to the following reason: loan classification policies (negative). BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ESG CONSIDERATIONS MB has an ESG Relevance Score of '4' for Governance Structure due to its still-evolving corporate governance framework. This is reflected, for example, by low independent director representation, which has a negative impact on the credit profile and is relevant to the rating in conjunction with other factors. This is, nevertheless, a common trait of many Vietnamese banks. MB has an ESG Relevance Score of '4' for Financial Transparency, reflecting Fitch's assessment that Vietnamese banks' financial disclosure is generally lacking relative to other higher-rated jurisdictions, which has a negative impact on the credit profile and is relevant to the rating in conjunction with other factors. Notwithstanding improvements in recent years, Fitch believes there is still a degree of opaqueness in MB's financial reporting, particularly in the disclosure of reported stressed loans. This can increase uncertainty for investors and weigh on the rating, but is also a feature that Fitch believes is shared by many peers in Vietnam. Except for matters discussed above, the highest level of ESG credit relevance, if present, is a score of 3. This means ESG issues are credit-neutral or have only minimal credit impact on the entities, either due to their nature or to the way in which they are being managed by the entities. VIETCOMBANK: Fitch Affirms 'BB-' LongTerm IDR, Outlook Positive --------------------------------------------------------------- Fitch Ratings has upgraded Joint Stock Commercial Bank For Foreign Trade of Vietnam's (Vietcombank) Viability Rating (VR) to 'b+' from 'b' and affirmed the Long-Term Issuer Default Rating (IDR) at 'BB-'. The Outlook on the IDR is Positive, in line with Vietnam's sovereign rating of 'BB' with Positive Outlook. Fitch is withdrawing Vietcombank's Support Rating and Support Rating Floor as they are no longer relevant to the agency's coverage following the publication of Fitch's updated Bank Rating Criteria on 12 November 2021. In line with the updated criteria, Fitch has assigned Vietcombank a Government Support Rating (GSR) of 'bb-'. KEY RATING DRIVERS The upgrade of Vietcombank's VR is driven by Fitch's assessment that Vietnam's banking system operating environment (OE) factor score has returned to a pre-pandemic level of 'bb-', as business conditions have been substantially less severe than Fitch had expected at the onset of the Covid-19 pandemic in April 2020. Vietnam's economy underwent notable deceleration in 2020 and 2021, but Fitch believes its medium-term fundamentals remain intact and growth prospects remain strong. A higher OE score, combined with the bank's steady financial performance amid supportive business conditions, has thus led to an upward revision of its financial profile scores as well as the VR. This is the second upgrade of Vietcombank's VR, after the last one in February 2018, as the bank's standalone credit profile has improved over the years. IDRS and GSR Vietcombank's Long-Term IDR is driven by Fitch's expectations of a moderate probability of support from the sovereign, if necessary, mainly because of uncertainties about Vietnam's ability to prevent the default of banks' senior obligations given the large size of Vietnam's banking sector relative to GDP. Fitch rated the IDR and GSR at one notch below the sovereign rating to reflect Vietcombank's high systemic importance, with 9%-10% share of system deposits and loans, and the State Bank of Vietnam's ownership of 75% of its shares. The Outlook on the IDR mirrors the Outlook on the sovereign rating as it reflects Fitch's view of the sovereign's improving ability to provide extraordinary support. Fitch affirmed the Short-Term IDR at 'B', which corresponds with the 'BB' category Long-Term IDR, consistent with Fitch's Bank Rating Criteria. VR The upgrade of the OE to a higher rating category has led us to reassess the other key rating drivers and the VR more positively, as financial profile scores are significantly influenced by a bank's OE category score under Fitch's Bank Rating Criteria. Fitch believes improving economic prospects in Vietnam have reduced downside risks on Vietcombank's asset quality, with positive effects on its profitability. Recent improvements in the bank's risk management and controls framework have also enhanced its risk profile. The upward revision of these key rating drivers has, collectively, prompted us to upgrade the VR. Vietcombank's standalone credit profile continues to be anchored by its strong market position within the domestic banking system and steady profitability, which is offset by a capitalisation level that is low relative to prevailing risks in the operating environment. Vietcombank's non-performing loan (NPL) ratio rose to 1.2% by end-September 2021 (end-2020: 0.6%), as a 6.2% contraction in GDP in 3Q21 and lockdowns across large parts of the country drove an increase in loan impairments. Fitch believes the NPL ratio would have been higher if not for regulatory forbearance that permitted banks to restructure loans affected by Covid-19 without downgrading them. Nevertheless, Fitch expects the NPL ratio to remain steady by end-2022, and total loans under stress - which includes restructured loans and "special-mention" loans - to remain manageable. Vietcombank has buttressed its credit allowances over the course of the pandemic, with loan loss coverage at 243% by end-September 2021 (end-2019: 191%), to accommodate additional write-offs and buffer against the expected increase in NPLs. The pre-emptive credit provisioning is partly driven by the central bank's Circular No. 03/2021, but the bank also booked provisions significantly above the minimum amounts stipulated by the regulator for end-2021. Fitch believes Vietcombank's more conservative positioning against potential adverse scenarios reflects a more balanced appetite for risks, even as it continues to pursue rapid loan growth. Qualitative improvements in the bank's risk controls and underwriting, as well as higher financial buffers against unrealised risks, led us to raise the bank's risk-profile and asset-quality scores to 'b+' from 'b'. The outlooks on the scores are stable. Robust loan growth of 19% yoy, a higher net interest margin and a healthy increase in fee revenue drove operating income 22% higher in 9M21. Loan impairment charges were higher, but credit costs as a proportion of loans was steady at 1.2% during the period compared with 1.2% in 2020. Fitch believes Vietcombank's revenue outlook remains healthy, as it is poised to expand its loan book at a similarly fast pace in 2022 amid a stable net interest margin and a ramp up in economic activities. Credit costs should decline in view of the advance allowances already booked, which should drive continued modest improvement in its profitability next year. Fitch revised its earnings and profitability score to 'bb-' from 'b+', with a stable outlook. Capitalisation, as measured by the Fitch Core Capital ratio, improved to 8.8% by end-September 2021, from 8.2% at end-2020. This is likely to be augmented by a private placement exercise that the bank targets to complete in 2022, which Fitch estimates will improve the bank's capital ratio by about 1.3pp. Stronger profitability should continue to buoy the bank's capitalisation and narrow its gap against private-sector peers, but improvements are likely to be gradual as retained earnings are largely consumed by rapid balance-sheet growth. Fitch has revised the capitalisation and leverage score to 'b+' from 'b', in line with the higher OE score. The outlook is stable. Vietcombank's funding and liquidity profile remained steady amid ample liquidity in the domestic banking system. Its loan/deposit ratio rose slightly to 84% by end-September 2021 (end-2020: 81%) and its current and savings account deposits as a ratio of total deposits ticked up to 34% from 33%. The funding and liquidity score remains at 'bb-' with a stable outlook. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: IDRS and GSR -- A downgrade in the sovereign rating is likely to lead to a similar downgrade of the bank's GSR, and in turn, its Long Term IDR. -- Fitch may also take negative rating action on the GSR and IDR if Fitch sees evidence of lower propensity from the sovereign to support the bank, such as if the state reduces its ownership in the bank to less than 50%, or if Vietcombank becomes considerably less systemically important. -- Fitch believes both scenarios are unlikely to occur in the near term as the sovereign rating is on a Positive Outlook and Vietcombank's balance sheet remains about twice as large as that of the largest private-sector banks. -- The Short-Term IDR is unlikely to be downgraded unless the Long-Term IDR was downgraded by four or more notches. VR -- Vietcombank's VR may come under pressure if Vietnam's economic performance falls materially short of Fitch's expectations and more severe business conditions lead to the NPL ratio rising and staying above 1.5%, and its operating profit/risk-weighted assets declining below 2% on a sustained basis. A decline in the Fitch Core Capital ratio to less than 8% may also lead us to downgrade the VR. Fitch believes such prospects are low in the near term, given the improving economic environment. Factors that could, individually or collectively, lead to positive rating action/upgrade: IDR and GSR -- The GSR is sensitive to Vietnam's sovereign rating and is likely to be upgraded if the sovereign rating was upgraded, provided that Fitch's assessment of the state's propensity to provide support to Vietcombank remains unchanged. An upgrade of the GSR will lead to an upgrade of Vietcombank's IDR, as the IDR is driven by the GSR. -- The Short-Term IDR is unlikely to be upgraded unless the Long-Term IDR was upgraded by three or more notches. VR The prospects of further positive action are low in the near term considering the VR upgrade today. Nonetheless, continued improvements in several financial-profile factors may result in an upgrade. These may include: -- The NPL ratio being sustained at less than 1% after regulatory forbearance expires. This also assumes other indicators of asset impairments, such as the "special-mention" loan ratio, restructured loan ratio, or any new Vietnam Asset Management Company bond holdings, remain at healthy levels. -- The Fitch Core Capital ratio improving to and sustained at more than 12% over a prolonged period. VR ADJUSTMENTS The Operating Environment score has been assigned above the implied score due to the following adjustment reason(s): Economic Performance (positive). The Asset Quality score has been assigned below the implied score due to the following adjustment reason(s): Loan Classification Policies (negative). BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ESG CONSIDERATIONS Vietcombank has an ESG Relevance Score of '4' for Governance Structure due to the significant influence of the state in the bank's strategic objectives and a potential lack of effective independent board oversight that could weaken the protection of creditor and stakeholder rights. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The bank's strong state linkages are also factored into Fitch's assessment of the likelihood of state support, which drives its GSR and Long-Term IDR. Vietcombank also has an ESG Relevance Score of '4' for Financial Transparency due to the quality and accuracy of financial reporting standards in Vietnam, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. A lack of transparency can increase uncertainty and investment risks for investors and weigh on the bank's rating. This is an issue common to many local banks in Vietnam, notwithstanding areas of improvement Fitch has observed in recent years. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. VIETINBANK: Fitch Affirms 'BB-' LongTerm IDR, Outlook Positive -------------------------------------------------------------- Fitch Ratings has upgraded Vietnam Joint Stock Commercial Bank for Industry and Trade's (Vietinbank) Viability Rating (VR) to 'b' from 'b-' and affirmed the Long-Term Issuer Default Rating (IDR) at 'BB-'. The Outlook on the IDR is Positive, in line with the Positive Outlook on Vietnam's sovereign rating of 'BB'. Fitch is withdrawing Vietinbank's Support Rating and Support Rating Floor as they are no longer relevant to the agency's coverage following the publication of Fitch's updated Bank Rating Criteria on 12 November 2021. In line with the updated criteria, Fitch has assigned Vietinbank a Government Support Rating (GSR) of 'bb-'. KEY RATING DRIVERS The upgrade in Vietinbank's VR is driven by Fitch's assessment of Vietnam's banking system operating environment (OE) factor score reverting to a pre-pandemic level of 'bb-' from 'b+', as business conditions have been substantially less severe than Fitch had expected at the onset of the pandemic in April 2020. Vietnam's economic growth decelerated notably in 2020 and 2021, but Fitch believes its medium-term fundamentals remain intact and growth prospects strong. The higher OE score, combined with the bank's steady financial performance amid supportive business conditions, has thus catalysed an upward revision of its financial profile scores as well as the VR. IDRs and GSR Vietinbank's Long-Term IDR is driven by Fitch's expectations of a moderate probability of support from the sovereign, if necessary, mainly because of uncertainties about Vietnam's ability to prevent a default of the banking system's senior obligations, especially given the large size of Vietnam's banking sector relative to GDP. Fitch has rated the IDR and GSR at one notch below the sovereign rating to reflect the bank's high systemic importance with 10%-11% share of system deposits and loans, and the state's 65% ownership of the bank, which Fitch believes is likely to be maintained, as a July 2021 announcement defined state-owned banks as those that are at least 65% held by the state. The Outlook on the IDR mirrors that of the sovereign as it reflects Fitch's view of Vietnam's improving ability to provide extraordinary support. Fitch affirmed the Short-Term IDR at 'B', which corresponds with the 'BB' category Long-Term IDR, consistent with Fitch's Bank Rating Criteria. VR The upgrade of the OE to a higher category has led us to reassess the other key rating drivers and the VR more positively, as financial scores are significantly influenced by the OE category score a bank has under Fitch's Bank Rating Criteria. Fitch believes Vietinbank's asset quality performance is likely to benefit from an improving economic outlook, which will also have positive effects on its profitability. Vietinbank's VR is underpinned by its strong market position in Vietnam, but offset by capitalisation and asset-quality metrics that are below the average of its Fitch-rated peers. Fitch also recognised improvements in the bank's risk management and controls over the past few years. The non-performing loan (NPL) ratio rose to 1.7% by end-September 2021 (2020: 0.9%) as loan delinquencies increased amid Vietnam's stringent lockdowns and a 6.2% contraction in the GDP in 3Q21. Fitch believes regulatory forbearance allowing Covid-19-affected loans to be restructured without being downgraded has shielded the NPL ratio from a larger increase. Nevertheless, the amount of loans being restructured and complementary indicators like the problem-loan ratio that includes 'special mention' loans suggest credit impairments are likely to rise only moderately in 2022. Fitch believes the bank has narrowed the gaps that its risk-control framework had vis-à-vis its local peers through better credit-risk monitoring and the implementation of Basel II at the start of 2021. Vietinbank has also been beefing up its loan-loss allowances to 2% of loans by end-September 2021. Fitch thinks these qualitative improvements and financial buffers would mitigate credit impairment risks as regulatory forbearance is rolled back. Fitch has therefore upgraded both the risk profile score and the asset quality score to 'b' from 'b-'. The outlooks on both key rating drivers are stable. Steady loan growth of 13% yoy, coupled with a higher net interest margin and strong fee income, drove 9M21's operating revenue 23% higher yoy. This was offset by a 59% increase in loan-impairment charges, as Vietinbank ramped up provisions for Covid-19-related restructured loans. Fitch believes revenue prospects in 2022 remain positive on an acceleration in loan growth and the improving economy, and credit costs are likely to ease even though they remain elevated relative to pre-pandemic trends. Therefore, Fitch expects the bank's profitability core metric to improve and have revised the earnings and profitability score to 'b+' from 'b' with a stable outlook. The Fitch Core Capital (FCC) ratio dipped in 9M21 as Vietinbank's implementation of Basel II this year increased its base of risk-weighted assets, keeping its capitalisation the lowest among its local rated peers. Fitch's base-case expectations of continued earnings recovery and restricted cash dividends indicate that the bank's capitalisation is likely to recover in 2022, but any improvement is likely to be tempered by its continued pursuit of rapid loan growth. Fitch has revised the capitalisation and leverage score to 'b' from 'b-' with a stable outlook, as Fitch believes the risks of it breaching the regulatory minimum have eased. Vietinbank's funding and liquidity profile remained steady amid ample liquidity in the domestic banking system. Its loan/deposit ratio declined to 101% by end-September 2021 (2020: 103%) and the share of current and savings account deposits in its deposit base also improved modestly to 19%. Fitch has revised the funding and liquidity score to 'bb-' from 'b+' as Fitch expects liquidity conditions to remain healthy amid the improved operating environment. The outlook is stable. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: VR -- The VR may come under pressure if Vietnam's economic performance falls materially short of Fitch's expectations and the more challenging environment leads to the NPL ratio rising to and staying above 5%, and its operating profit/risk weighted assets declining below 1% on a sustained basis. Fitch may also downgrade the VR if its capital ratios decline and are at reasonable risk of breaching the regulatory minimum. Fitch believes these prospects are low in the near term in light of the improving economic conditions and Fitch's stable outlooks on all financial profile scores. IDR and GSR A downgrade in the sovereign rating is likely to lead to a similar downgrade of the bank's GSR, and in turn, its Long-Term IDR. Fitch may also take negative rating action on the GSR and IDR if Fitch sees evidence of lower propensity from the sovereign to support the bank, such as if the state reduces its ownership in the bank to less than 50%, or if Vietinbank becomes considerably less systemically important. Fitch believes both scenarios are unlikely to occur in the near term as the sovereign rating is on a Positive Outlook and Vietinbank's balance sheet remains about twice as large as that of the biggest private-sector banks. The Short-Term IDR is unlikely to be downgraded unless the Long-Term IDR is downgraded by four or more notches. Factors that could, individually or collectively, lead to positive rating action/upgrade: VR The prospects of further positive action are low in the near term, considering the VR upgrade today. Nonetheless, continued improvement in several financial profiles may result in an upgrade. These may include: -- The NPL ratio sustained at less than 2% after regulatory forbearance expires. This also assumes other indicators of asset impairments, such as the 'special mention' loan ratio, restructured loan ratio, or any new Vietnam Asset Management Company bond holdings, remain at healthy levels; -- Operating profit/risk-weighted assets rising to and sustained at around 2.4%; -- The FCC ratio improving to more than 10%. IDR and GSR The GSR is sensitive to Vietnam's sovereign rating and is likely to be upgraded if the sovereign rating is upgraded, provided that Fitch's assessment of the state's propensity to provide support to Vietinbank remains unchanged. An upgrade of the GSR will lead to an upgrade of Vietinbank's IDR, as the IDR is driven by the GSR. The Short-Term IDR is unlikely to be upgraded unless the Long-Term IDR is upgraded by three or more notches. VR ADJUSTMENTS -- The VR has been assigned below the implied VR due to the following adjustment reason: weakest link - capitalisation and leverage (negative). -- The OE score has been assigned above the implied score due to the following adjustment reason: economic performance (positive). -- The asset quality score has been assigned below the implied score due to the following adjustment reason: loan classification policies (negative). BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ESG CONSIDERATIONS Vietinbank has an ESG Relevance Score of '4' for Governance Structure due to the significant influence of the state in the bank's strategic objectives and a potential lack of effective independent board oversight that could weaken the protection of creditor and stakeholder rights. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The bank's strong state linkages are also factored into Fitch's assessment of the likelihood of state support, which drives its GSR and Long-Term IDR. Vietinbank also has an ESG Relevance Score of '4' for Financial Transparency due to the quality and accuracy of financial reporting standards in Vietnam, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Notwithstanding improvements made in recent years, including the bank's implementation of Basel II and redemption of its outstanding Vietnam Asset Management Company bonds, Fitch believes loan classification standards among Vietnamese banks in general are not consistently applied, leading to systematic understating of non-performing assets. A lack of transparency can increase uncertainty and investment risks for investors and weigh on its ratings. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2021. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***