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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

          Monday, December 20, 2021, Vol. 24, No. 247

                           Headlines



A U S T R A L I A

ATHENA 2021-2PP: Fitch Assigns Final B Rating on Class F Notes
NICKEL MINES: Fitch Affirms 'B+' LT IDR, Outlook Stable


I N D I A

GARLICO INDUSTRIES: Insolvency Resolution Process Case Summary

                           - - - - -


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A U S T R A L I A
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ATHENA 2021-2PP: Fitch Assigns Final B Rating on Class F Notes
--------------------------------------------------------------
Fitch Ratings has assigned final ratings to Athena 2021-2PP Trust's
mortgage-backed pass-through floating-rate bonds. The issuance
consists of notes backed by a pool of first-ranking Australian
prime residential full-documentation mortgage loans originated by
Athena Mortgage Pty Limited.

The notes are issued by Perpetual Corporate Trust Limited in its
capacity as trustee of Athena 2021-2PP Trust. This is a separate
and distinct trust created under a master trust deed.

DEBT      RATING               PRIOR
----      ------               -----
Athena 2021-2PP Trust

A    LT AAAsf  New Rating    AAA(EXP)sf
B    LT AAsf   New Rating    AA(EXP)sf
C    LT Asf    New Rating    A(EXP)sf
D    LT BBBsf  New Rating    BBB(EXP)sf
E    LT BBsf   New Rating    BB(EXP)sf
F    LT Bsf    New Rating    B(EXP)sf
G    LT NRsf   New Rating    NR(EXP)sf

KEY RATING DRIVERS

Credit Enhancement Provides Buffer Over Expected 'AAAsf' Losses:
The 'AAAsf' weighted-average (WA) foreclosure frequency of 6.7%,
from 6.9% in the previous Athena 2021-1PP Trust, is driven by the
WA unindexed current loan/value ratio of 54.3% and investment loans
of 13.9%. The 'AAAsf' WA recovery rate of 40.6% is driven by the
portfolio's WA indexed scheduled loan/value ratio of 56.5%. The
class A, B, C, D, E and F notes benefit from credit enhancement of
6.0%, 3.2%, 1.93%, 1.1%, 0.6% and 0.2%, respectively.

Liquidity Risk Mitigated: Structural features include a liquidity
facility sized at 1.5% of the rated note balance, with a floor of
AUD450,000, which is sufficient to mitigate Fitch's payment
interruption risk. The rated notes can withstand all relevant Fitch
stresses applied in Fitch's cash flow analysis.

Originator Adjustment Due to Limited Historical Performance Data:
Mortgages were originated by Athena in its ordinary course of
business. Athena is a non-bank mortgage lender established in 2017
with operations in Sydney, Australia. Fitch undertook an
operational review and found that the operations of the originator
and servicer were comparable with market standards. Fitch does not
expect the servicer's operations to be disrupted by the Covid-19
pandemic, as staff are able to work remotely and have access to the
office.

Fitch has applied a 5% increase to its base foreclosure frequency
due to limited originator-specific performance data.

Economic Growth Supports Outlook: Portfolio performance is
supported by Australia's management of the pandemic, including the
nationwide vaccine rollout that is facilitating the removal of
lockdown restrictions. Fitch forecasts Australia's GDP to expand by
4.0% in 2022, with an unemployment rate of 4.4%. GDP growth should
normalise to 2.8% in 2023, with an unemployment rate of 4.6%.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

-- A longer pandemic than Fitch expects that leads to
    deterioration in macroeconomic fundamentals and consumers'
    financial positions in Australia beyond Fitch's baseline
    scenario. Available credit enhancement cannot compensate for
    higher credit losses and cash flow stresses, all else being
    equal.

-- Unanticipated increases in the frequency of defaults and loss
    severity on defaulted receivables could produce loss levels
    higher than Fitch's base case and are likely to result in a
    decline in credit enhancement and remaining loss-coverage
    levels available to the notes. Decreased credit enhancement
    may make certain note ratings susceptible to negative rating
    action, depending on the extent of the coverage decline.
    Hence, Fitch conducts sensitivity analysis by stressing a
    transaction's initial base-case assumptions.

Downgrade Sensitivity

-- Note: A / B / C / D / E / F

-- Rating: AAAsf / AAsf / Asf / BBBsf / BBsf / Bsf

-- Increase defaults by 15%: AAAsf / AA-sf / A-sf / BB+sf / B+sf
    / Bsf

-- Increase defaults by 30%: AAAsf / A+sf / BBB+sf / BB+sf / B+sf
    / below Bsf

-- Reduce recoveries by 15%: AAAsf / AA-sf / BBB+sf / BB+sf /
    B+sf / below Bsf

-- Reduce recoveries by 30%: AAAsf / A+sf / BBBsf / BBsf / B+sf /
    below Bsf

-- Increase defaults by 15% and reduce recoveries by 15%: AAAsf /
    A+sf / BBBsf / BBsf / B+sf / below Bsf

-- Increase defaults by 30% and reduce recoveries by 30%: AA+sf /
    A-sf / BB+sf / B+sf / Bsf / below Bsf

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

-- An upgrade could result from macroeconomic conditions, loan
    performance and credit losses that are better than Fitch's
    baseline scenario or sufficient build-up of credit enhancement
    that would fully compensate for credit losses and cash flow
    stresses commensurate with higher rating scenarios, all else
    being equal.

-- The class A notes are at 'AAAsf', which is the highest level
    on Fitch's scale. The ratings cannot be upgraded.

-- The rating on the class F notes is constrained by the large
    obligor concentration test, which limits the rating at one
    notch below the model implied rating of 'B+sf'. Prepayments to
    the loans with the largest obligor exposure, which result in
    the notes passing Fitch's concentration test, could lead to
    positive rating action for this class of notes, all else being
    equal.

As the class A notes are at 'AAAsf', upgrade sensitivity stresses
for these notes are not relevant. However, results for the
remaining rated notes are as follows:

-- Note: B / C / D / E / F

-- Rating: AAsf / Asf / BBBsf / BBsf / Bsf

-- Decrease defaults by 15% and increase recoveries by 15%: AA+sf
    / A+sf / A-sf / BBB-sf / BB+sf

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Structured Finance
transactions have a best-case rating upgrade scenario (defined as
the 99th percentile of rating transitions, measured in a positive
direction) of seven notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of seven notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings
are based on historical performance.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY

Fitch sought to receive a third-party assessment conducted on the
asset portfolio information, but none was made available for this
transaction.

Fitch reviewed a small targeted sample of the originator's
origination files and found the information contained in the
reviewed files to be adequately consistent with the originator's
policies and practices and the other information provided to the
agency about the asset portfolio.

Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.

NICKEL MINES: Fitch Affirms 'B+' LT IDR, Outlook Stable
-------------------------------------------------------
Fitch Ratings has affirmed Nickel Mines Limited's (NIC) Long-Term
Issuer Default Rating at 'B+' with a Stable Outlook. Fitch has also
affirmed NIC's USD325 million senior unsecured notes at 'B+' with a
Recovery Rating of 'RR4'.

The affirmation follows Fitch's expectation that funds from
operations (FFO) leverage will remain below 3.0x through to 2023 -
the threshold above which Fitch would consider negative rating
action - following NIC's proposed acquisition of Indonesia-based PT
Oracle Nickel Industry (ONI). Fitch expects the acquisition to be
funded by cash on hand and free cash flow. However, even if it is
partly debt funded, Fitch believes the increase in leverage can be
contained within the existing rating.

NIC executed a binding definitive agreement with Shanghai Decent
Investment (Group) Co., Ltd. (SDI - a Tsingshan group company) on 8
December 2021 to acquire a 70% equity interest in ONI for a total
of USD525 million, including USD371 million in consideration and
USD154 million in shareholder loans to ONI.

KEY RATING DRIVERS

Available Debt Capacity: FFO leverage will remain below 3.0x in
2022-2023 (2021 estimate: 1.5x), even under the scenario of a
partially debt-funded acquisition of ONI. Fitch understands that
the funding of the acquisition could comprise a mix of cash
reserves, equity raise and debt funding. NIC has debt capacity
within its current metrics, but Fitch believes it is more likely
that the acquisition will be funded from free cash flow. NIC has a
record of utilising equity to fund acquisitions, which enables
Tsingshan to participate in the equity raising and maintain
interest in the project, albeit indirectly.

Acquisition Payment Schedule Manageable: The acquisition payment
schedule provides NIC with a significant runway to finalise the
ultimate funding mix of the acquisition. Payments will be made
incrementally from 4Q21 until 1Q23, with USD302 million scheduled
for late stage 4Q22 and 1Q23; as the bulk of the payment is not
until the latter part of 2022, the quantum of debt and equity
funding will evolve and be driven by production levels, nickel pig
iron (NPI) prices and costs.

New Production to Support Deleveraging: Fitch estimates leverage
will reach 2.6x-2.8x in 2022 if the company decides to raise USD300
million-350 million as part of a partially debt-funded acquisition.
However, leverage should fall to around 2.0x in 2023 as ANI
commences full operation in 4Q22 and ONI starts full production in
3Q23. NIC has stated that it will continue to explore opportunities
with SDI. The timing and funding of further acquisitions could
reduce the headroom in its credit metrics and concurrently increase
its reliance and exposure to Tsingshan group as the sole off-taker
for its products.

Larger Scale, Single Commodity: ANI's full production, which NIC
expects to commence in October 2022 following the completion of a
power plant in September, will improve NIC's asset concentration
risk. NIC's current production is located at PT Indonesia Morowali
Industrial Park (IMIP), while ANI is based at Indonesia Weda Bay
Industrial Park. Fitch expects full production at both ANI and ONI
to boost NIC's nameplate capacity to 102,000 tonnes a year by 2024,
from 30,000 tonnes currently. Both projects have 36,000 tonnes of
annual capacity at full production.

ANI and ONI will position NIC as a globally significant nickel
producer, but it will remain highly exposed to Chinese NPI prices.

Robust EBITDA Margin: Fitch expects the EBITDA margin to remain
above 30% through to 2023 (2021 estimate: 36%). NIC's solid cash
cost position at its NPI facilities should help it weather the
impact of commodity price fluctuations on its selling prices and
input costs. The purchase of nickel ore accounts for around 30%-40%
of its costs and thermal coal purchases for electricity make up
25%-30%. The EBITDA margin remained solid in 1H21 at 36% (2020:
37%), as higher NPI prices compensated for the surge in thermal
coal prices.

NIC's two rotary kiln electric furnace (RKEF) processing facilities
- PT Hengjaya Nickel Industry (HNI) and PT Ranger Nickel Industry
(RNI) -- are strategically located at IMIP, the world's largest
integrated stainless-steel production facility. Indonesia is the
largest nickel producer globally and the Morowali regency has some
of the country's largest nickel ore deposits. A ban on raw ore
exports and close proximity to ore supply give NIC the advantages
of cheaper raw material prices and low logistic costs.

Positive Free Cash Flow: Free cash flow should stay positive
through to 2023, supported by a solid EBITDA margin and steady
capex and shareholder returns. Fitch expects free cash flow to
comfortably cover a large part of the acquisition amid Fitch's
forecast for a stable NPI price in 2022. Fitch believes NIC has
adequate funding access, given its record of raising funds in the
equity and offshore bond markets.

DERIVATION SUMMARY

Fitch believes NIC has a better credit profile than Guangyang Antai
Holdings Limited (B/Stable). Guangyang Antai's larger operational
scale and revenue generation, as China's third-largest
stainless-steel producer, are offset by NIC's solid cash cost
position and credit metrics. Guangyang Antai's business profile and
margin are weighed down by its increasing exposure towards the
lower-margin trading business. NIC's cash flow generation is
significantly better, with an EBITDA margin of above 35%, supported
by its strong cash cost position. This compares with Guangyang
Antai's EBITDA margin of less than 5%.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:

-- Stable production at HNI and RNI in 2021-2023;

-- Full production at ANI to commence in 3Q22 and full production
    at ONI to commence in 3Q23;

-- EBITDA margin of around 32%-36% in 2021-2023;

-- Minimal capex at subsidiaries, as major investment projects
    were recently completed;

-- USD525 million acquisition of ONI to be paid incrementally
    from 4Q21 until 1Q23.

RATING SENSITIVITIES

Factor that could, individually or collectively, lead to positive
rating action/upgrade:

-- Successful ramp-up of ANI in line with Fitch's expectation,
    while maintaining FFO leverage at below 2.0x.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

-- Sustained increase in FFO leverage to above 3.0x;

-- Material disruption at the HNI and RNI smelter operations.

KEY RECOVERY RATING ASSUMPTIONS

The recovery analysis assumes that NIC would be reorganised as a
going concern in bankruptcy rather than liquidated. Fitch assumes a
10% administrative claim.

Our going-concern EBITDA estimate reflects Fitch's view of a
sustainable, post-reorganisation EBITDA level upon which Fitch
bases the enterprise valuation.

Our going-concern EBITDA estimate of USD240 million reflects the
mid-cycle nickel price and stable RKEF operations at HNI and RNI.
Fitch uses a multiple of 5x to estimate a value for NIC because of
its geographical concentration in Indonesia and smaller operational
scale compared with peers, despite stronger growth prospects
following ANI's production commencement.

The going-concern enterprise value corresponds to a 'RR1' Recovery
Rating for the senior unsecured notes after adjusting for
administrative claims. Nevertheless, Fitch rates the senior
unsecured bonds at 'B+' and 'RR4' because NIC's operating assets
are located in Indonesia. Under Fitch's Country-Specific Treatment
of Recovery Ratings Criteria, Indonesia is classified under the
Group D of countries in terms of creditor friendliness and Recovery
Ratings are subject to a cap at 'RR4'.

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

Medium-Term Debt Maturity: NIC successfully issued another USD150
million in senior unsecured notes in 3Q21 as a follow up to its
USD175 million note issue in 1Q21. Consequently, NIC's closest debt
maturity is in 2024, with the maturity of the USD325 million senior
unsecured notes. NIC had USD120 million in cash, of which USD75
million was held at the NIC level, at end-September 2021.

ISSUER PROFILE

NIC is an NPI producer that operates in Indonesia's IMIP. It
operates four rotary kiln electric furnaces processing facilities
with total annual name-plate capacity of 30,000 tonnes.

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.



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GARLICO INDUSTRIES: Insolvency Resolution Process Case Summary
--------------------------------------------------------------
Debtor: Garlico Industries Limited

        Registered office:
        404, Shagun Arcade
        Near Apna Sweets
        Plot No. 8, Vijay Nagar
        A.B. Road
        Indore (M.P.) 452010

        Principal place of business (Manufacturing Unit):
        9/1, Industrial Estate
        Mandsaur (M.P.) 458001

Insolvency Commencement Date: December 11, 2021

Court: National Company Law Tribunal, Indore Bench

Estimated date of closure of
insolvency resolution process: June 8, 2022
                               (180 days from commencement)

Insolvency professional: Subhash Chandra Modi

Interim Resolution
Professional:            Subhash Chandra Modi
                         1301/02, Silver Oak
                         Raheja Willows CHS Ltd.
                         Akurli Road, Kandivali (East)
                         Mumbai, Maharashtra 400101
                         E-mail: subhash0658@gmail.com

                            - and -

                         Areion Resolution and Turnaround
                         Private Limited
                         A/301, 3rd Floor, Kanakia Zillion
                         Junction of LBS Road & CST Road
                         BKC Annexe, Kurla (West)
                         Mumbai 400070
                         E-mail: cirpgarlico.areion@gmail.com

Last date for
submission of claims:    December 25, 2021



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S U B S C R I P T I O N   I N F O R M A T I O N

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