/raid1/www/Hosts/bankrupt/TCRAP_Public/250113.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, January 13, 2025, Vol. 28, No. 9
Headlines
A U S T R A L I A
INVIBE FIT: Commences Wind-Up Proceedings
KESTER BLACK: Discontinues Nail Polish Line, Changing Course
MECHANICAL WAREHOUSE: Second Creditors' Meeting Set for Jan. 17
NEPEAN RIVER: First Creditors' Meeting Set for Jan. 20
NEWCASTLE RECYCLING: Commences Wind-Up Proceedings
ONELIFE LABS: Second Creditors' Meeting Set for Jan. 16
SOUTH EAST BREWING: Kaiju! Beer Enters Voluntary Administration
STAR ENTERTAINMENT: Has 50% Chance of Falling Into Administration
C H I N A
CHINA EVERGRANDE: Key Unit Ordered to Liquidate by Hong Kong Court
COUNTRY GARDEN: Proposes Plan to Cut Debt by Up to USD11.6BB
SHIMAO GROUP: Receives Liquidation Petition Over CNY258MM Loan
SUNAC CHINA: receives liquidation petition in Hong Kong
I N D I A
AERON EXPORTS: CRISIL Keeps D Debt Rating in Not Cooperating
ALBYS AGRO: Ind-Ra Moves D Rating to NonCooperating
BAJORIA AGRO: CRISIL Keeps D Debt Ratings in Not Cooperating
BENARJEE POULTRY: CRISIL Keeps D Debt Ratings in Not Cooperating
BEST IT WORLD: CRISIL Keeps D Debt Ratings in Not Cooperating
BHARAT CONSTRUCTIONS: CRISIL Keeps D Ratings in Not Cooperating
BLESSINGS RESORTS: CRISIL Keeps D Ratings in Not Cooperating
CHINTPURNI STEEL: Ind-Ra Withdraws BB+ Term Loan Rating
JAMPANA PADMAVATHI: ICRA D Debt Ratings in Not Cooperating
JAY PARVATI: ICRA Keeps B Debt Ratings in Not Cooperating
K E AGRO: CRISIL Keeps B+ Debt Ratings in Not Cooperating
K. PRASAD: ICRA Keeps B Debt Ratings in Not Cooperating Category
KAILASH DAIRY: CRISIL Keeps B+ Debt Ratings in Not Cooperating
KALA CHAND: CRISIL Keeps B+ Debt Ratings in Not Cooperating
KANS WEDDING: CRISIL Keeps D Debt Ratings in Not Cooperating
KIJALK INFRASTRUCTURE: CRISIL Keeps B+ Rating in Not Cooperating
L.L. LOGISTICS: Ind-Ra Assigns BB+ Bank Loan Rating
LAXMINARAYAN INDUSTRIES: ICRA Keeps B+ Ratings in Not Cooperating
MAHALAXMI COTTON: ICRA Keeps B Debt Ratings in Not Cooperating
MANGALDEEP COLD: ICRA Keeps 'B' Debt Ratings in Not Cooperating
NATURAL COIR: CRISIL Keeps B+ Debt Ratings in Not Cooperating
NILKANTH COTTON: ICRA Keeps D Debt Ratings in Not Cooperating
NIMRA EDUCATIONAL: ICRA Keeps D Debt Ratings in Not Cooperating
NORTELS SERVICE: CRISIL Keeps B- Debt Ratings in Not Cooperating
OCTOCHEM PHARMA: Ind-Ra Moves BB- Rating to NonCooperating
PARCOS TILES: Ind-Ra Moves BB+ Rating to NonCooperating
POONAM TRADING: CRISIL Keeps D Debt Ratings in Not Cooperating
PRASHANTI CORPORATION: Ind-Ra Affirms BB Rating, Outlook Stable
RAJ-SNEH AUTO: CRISIL Keeps D Debt Ratings in Not Cooperating
RAJENDRAGURU GROUP: CRISIL Keeps D Debt Rating in Not Cooperating
RAJSHREE IMPEX: CARE Keeps D Debt Ratings in Not Cooperating
RAM IMPEX: CRISIL Keeps C Debt Rating in Not Cooperating Category
TEXWIN SPINNING: Ind-Ra Moves B+ Rating to NonCooperating
UNITED WINES: Ind-Ra Assigns BB Loan Rating, Outlook Stable
USHAHKAL ABHINAV: Ind-Ra Moves BB+ Rating to NonCooperating
VANSHIKA CONSTRUCTIONS: Ind-Ra Moves B+ Rating to NonCooperating
J A P A N
FURUKAWA ELECTRIC: Egan-Jones Retains BB+ Senior Unsecured Ratings
J. FRONT: Egan-Jones Hikes Senior Unsecured Ratings to BB
JAPAN AIRLINES: Egan-Jones Retains B+ Senior Unsecured Ratings
KEISEI ELECTRIC: Egan-Jones Retains BB Senior Unsecured Ratings
TOBU RAILWAY: Egan-Jones Retains BB Senior Unsecured Ratings
TOKYO ELECTRIC: Egan-Jones Retains BB+ Senior Unsecured Ratings
TOKYU CORP: Egan-Jones Retains BB Senior Unsecured Ratings
TOYOBO STC: Egan-Jones Retains BB+ Senior Unsecured Ratings
M A L A Y S I A
HO HUP: Gets Winding-Up Petition Over MYR2.5MM Unpaid Debt
M O N G O L I A
GOLOMT BANK: Moody's Rates New USD Senior Unsecured Notes 'B2'
N E W Z E A L A N D
CAMERON ROAD: Creditors' Proofs of Debt Due on Feb. 7
HUNTER BLOCKLAYING: Court to Hear Wind-Up Petition on Feb. 21
MAGIC MEALS: Grant Bruce Reynolds Appointed as Liquidator
OLIVOSA LIMITED: Creditors' Proofs of Debt Due on Feb. 7
WAVE CLEANING: Court to Hear Wind-Up Petition on Feb. 5
S I N G A P O R E
13 HONEY: Court Enters Wind-Up Order
ASIA DESSERT: Court to Hear Wind-Up Petition on Jan. 24
GERLYN C PTE: Court to Hear Wind-Up Petition on Jan. 24
MANAKIN INVESTMENTS: Creditors' Proofs of Debt Due on Feb. 7
VIEM POWERED: Court to Hear Wind-Up Petition on Jan. 24
S R I L A N K A
BANK OF CEYLON: Fitch Hikes Foreign & Local-Currency IDRs to 'CCC+'
- - - - -
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A U S T R A L I A
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INVIBE FIT: Commences Wind-Up Proceedings
-----------------------------------------
Members of Invibe Fit Pty Ltd, trading as Invibe Baby Kids
Maternity, on Jan. 9, 2025, passed a resolution to voluntarily wind
up the company's operations.
The company's liquidators are Robert Allan Jacobs and Andrew
Michael Smith of Auxilium Partners.
KESTER BLACK: Discontinues Nail Polish Line, Changing Course
------------------------------------------------------------
SmartCompany reports that Australian cosmetics label Kester Black
has discontinued its nail polish, the product central to its early
success, as the brand moves past a period of financial turmoil.
Kester Black last month announced the end of its ethically produced
and cruelty-free nail polish line, launched by founder Anna Ross in
2014.
Kester Black's other nail care products - and its skincare line,
mascara, and lipstick - will remain on offer after the nail polish
lines sell out, the report notes.
It is the brand's most significant change of course since mid-2024,
when it fell into voluntary administration.
A report prepared for creditors revealed Kester Black ordered a
large quantity of nail polish from its overseas suppliers, after
COVID-19 restrictions delayed previous shipments, SmartCompany
relays. But Kester Black struggled to sell some of its slow-moving
nail polish, with some products approaching or passing their expiry
date by the time the administrator was appointed in July last
year.
According to SmartCompany, Fergus Sully, Ms. Ross' partner and
long-time Kester Black team member, bought the brand out of
administration and now operates it through a new company.
Mr. Sully, who serves as Kester Black's managing director, told
SmartCompany nail polish accounted for 50% of its product range -
but only 5% of its total revenue contributions.
Behind the scenes, Mr. Sully said the Kester Black business is
implementing changes to ensure its stability.
That includes the closure of Kester Black's New Zealand-based
subsidiary, and the fulfilment of all orders from its Melbourne
warehouse, erasing some of the logistical complexity that
contributed to the former company's financial hardship, according
to SmartCompany.
Before the former company entered voluntary administration, it also
pursued an equity crowdfunding raise through Birchal, garnering
AUD2.16 million in investment.
The value of those shares fell to zero in the voluntary
administration, SmartCompany notes.
SmartCompany says some investors in the prior company were only
informed of the administration weeks after the fact.
The new company has no obligation to cover those shareholder
losses.
But Mr. Sully said the new version of Kester Black is offering
those shareholders gift vouchers, with many receiving vouchers
equivalent to the amount they invested in the former company,
SmartCompany relates. Other offers, to "ensure fairness for all
shareholders", are in development.
"We remain committed to fulfilling our promises to shareholders,
including those with larger investments, while acknowledging that
this will be a gradual process," Mr. Sully said.
About Kester Black
Launched in Melbourne in 2014, Kester Black offers vegan and
cruelty-free nail polishes, lipsticks and skincare products.
On July 9, 2024, Kester Black appointed Stephen Dixon of Hamilton
Murphy Advisory as voluntary administrator.
Documents listed by the Australian Securities and Investments
Commission (ASIC) show creditors voted in favour of a Deed of
Company Arrangement (DOCA) on Aug. 13, 2024, ensuring Kester Black
will remain a going concern, according to SmartCompany.
MECHANICAL WAREHOUSE: Second Creditors' Meeting Set for Jan. 17
---------------------------------------------------------------
A second meeting of creditors in the proceedings of Mechanical
Warehouse Solutions Pty Ltd has been set for Jan. 17, 2025 at 11:00
a.m. via a Teams videoconferencing facility.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 16, 2025 at 4:00 p.m.
Liam Bellamy and John Kukulovski of Mackay Goodwin were appointed
as administrators of the company on Dec. 3, 2024.
NEPEAN RIVER: First Creditors' Meeting Set for Jan. 20
------------------------------------------------------
A first meeting of the creditors in the proceedings of Nepean River
Dairy Pty Limited will be held on Jan. 20, 2025 at 11:00 a.m. via
virtual meeting only.
Rajiv Goyal and Andrew McEvoy of Aston Chace Group were appointed
as administrators of the company on Jan. 8, 2025.
NEWCASTLE RECYCLING: Commences Wind-Up Proceedings
--------------------------------------------------
Members of Newcastle Recycling Group Pty Ltd on Jan. 10, 2025,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are Kathleen Vouris and Richard Albarran
of Hall Chadwick.
ONELIFE LABS: Second Creditors' Meeting Set for Jan. 16
-------------------------------------------------------
A second meeting of creditors in the proceedings of Onelife Labs
Pty Ltd and Onelife Cultivation Pty has been set for Jan. 16, 2025
at 10:30 a.m. via Zoom conference.
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.
Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 15, 2025 at 4:00 p.m.
Gideon Isaac Rathner of Lowe Lippmann was appointed as
administrator of the company on Dec. 3, 2024.
SOUTH EAST BREWING: Kaiju! Beer Enters Voluntary Administration
---------------------------------------------------------------
Beer & Brewer reports that the new year has not got off to a great
start for Australia's craft brewing industry, with the news that
South East Brewing Company, trading as Kaiju! Beer, has appointed
DBA Reconstruction and Advisory as voluntary administrators to
assist in a financial restructuring of the business.
The company will continue operating as usual during this process,
with no disruption to production or distribution. Employees,
customers, and suppliers can expect operations to continue without
interruption.
A statement about the voluntary administration said: "This decision
was made by the directors, Callum, Nat and Leigh Reeves, after
considering options to address the financial challenges stemming
from an accumulation of debt. The directors believe this course of
action will deliver the best outcome to the company's employees,
customers, and creditors."
A Facebook post on the Kaiju Beer page Jan. 10 said: "Hey KAIJU!
Family - We obviously had some pretty big news drop yesterday [Jan.
9] and we want to thank you for the outpouring of support - it
means the world to us.
"We're still brewing, packing, and delivering the beers you love.
Business as usual. Cheers, Legends!"
According to the report, Kaiju has been a popular Australian craft
beer for many years, which saw strong growth between 2017 and 2021.
The challenge of meeting the high demand for Kaiju saw the business
make significant investment to expand production capacity, which
was financed through accrued earning and secured bank finance.
Beer & Brewer relates that the market has changed drastically since
the pandemic with factors including the deferral of ATO Excise
during the pandemic, the rising cost of living seen over the last
18 months and a drop in beer consumption many brewers have found it
hard to continue to operate.
The statement said: "Unforeseen market conditions - including
rising excise tariffs, the introduction of container deposit
schemes, and declining consumer confidence - resulted in a
challenging environment for the business."
CEO and Co-founder, Callum Reeves said: "The current circumstances
required us to make a tough but necessary decision, Beer & Brewer
relays.
"While the business is now trading profitably, this step allows us
to restructure and ensure a stronger future for Kaiju! Beer."
As with many other brewers Kaiju! has tried a number of ways to
reduce costs including staff redundancies, launching more
entry-level products and director pay-cuts. In addition the
business has stabilised sales to major retailers and driven growth
in key markets, but the burden of debt, particularly the deferred
excise payments has proven unsustainable.
Beer & Brewer adds the directors said they are "working closely
with DBA Reconstruction and Advisory on a Deed of Company
Arrangement (DOCA) to deliver the best outcome for all stakeholders
and ensure the company emerges stronger and more resilient from
this process".
STAR ENTERTAINMENT: Has 50% Chance of Falling Into Administration
-----------------------------------------------------------------
The Sydney Morning Herald reports that Star Entertainment has a 50
per cent chance of falling into administration, an analyst has
predicted, as the gambling company struggles amid a grim cash
crunch and plummeting investor confidence.
On Jan. 8, Star - which owns casinos in Sydney and Queensland -
announced the company was burning through cash at a rate of about
$35 million a month, with only $79 million left.
According to SMH, the casino operator, which has battled a series
of regulatory failings and scandals, has been crippled by high
costs even as it struggles to attract customers. It warned that it
would be "challenging" to meet the conditions required to unlock
the second tranche of a rescue $100 million loan it negotiated in
crisis talks last year.
In a note to investors, Morningstar analyst Angus Hewitt said Star
would be lucky to make it to its interim results on February 28
without a lifeline, as he slashed the firm's valuation of the
company by 60 per cent to 20¢ a share, SMH relates.
"We now incorporate a 50 per cent probability that Star falls into
administration and equity holders are wiped out," SMH quotes Mr.
Hewitt as saying.
SMH relates that Mr. Hewitt said Star could struggle to raise new
equity from investors in the current market, pointing out that
investors have been burned by previous capital raisings, at $1.20 a
share and 60¢ a share in 2023. He said Star was struggling to meet
the conditions needed to unlock a $100 million loan facility,
adding that operating costs were weak amid poor consumer sentiment
and the hit from a move to carded play.
"Star has other potential lifelines, including selling individual
assets or finding a potential suitor," he said. "We still expect a
medium-term recovery in operating conditions for casinos. However,
Star needs a more immediate solution, and we believe it's unlikely
it can trade itself out of this predicament."
SMH says NSW Premier Chris Minns ruled out providing any cash
support or tax breaks for the Star last week, insisting that his
government had done all it could with a jobs agreement that was
signed with the embattled gaming giant last year.
"We have done our bit when it comes to that," SMH quotes Mr. Minns
as saying on Jan. 9. "It has to be run on commercial grounds, and
it's a matter for Star, their ownership and their management."
SMH adds Tribeca Investment Partners portfolio manager Jun Bei Liu
said Star was in a dire situation and was running out of time and
money.
"Liquidity is a huge issue now, trading is slow and all the
regulatory compliance is taking effect, and at the same time, you
have an uncertain outcome in terms of the AUSTRAC fine," she said.
Ms. Liu agreed with Morningstar's analysis and said the company was
likely to fall into administration unless it could convince more
investors to provide capital, SMH relays.
"They've been wanting to sell the Queensland assets . . . that
could alleviate some . . . but the challenge is they're running out
of time," she said.
SMH reports that the United Workers Union (UWU), which represents
8,000 employees across Star, said job security for workers should
be the primary concern for all stakeholders.
SMH relates that UWU casinos director Andrew Jones said casino
workers "are tired and incredibly frustrated at bearing the brunt
of financial and operating licence instability as a result of
management failures over the past four years".
"The future of The Star cannot be determined without addressing the
real human impact of this crisis," he added. "Workers deserve
clarity, stability and a commitment of preserving their jobs, not
just from the company but from state governments. It's time for all
stakeholders to act decisively to protect the livelihoods of
thousands of casino workers and their families."
About The Star Entertainment
The Star Entertainment Group Limited (ASX:SGR) --
https://www.starentertainmentgroup.com.au/ -- is an Australia-based
company that provides gaming, entertainment and hospitality
services. The Company operates The Star Sydney (Sydney), The Star
Gold Coast (Gold Coast) and Treasury Brisbane (Brisbane). The
Company operates through three segments: Sydney, Gold Coast and
Brisbane. Sydney segment consists of The Star Sydney's casino
operations, including hotels, restaurants, bars and other
entertainment facilities. Gold Coast segment consists of The Star
Gold Coast's casino operations, including hotels, theatre,
restaurants, bars and other entertainment facilities. Brisbane
segment includes Treasury's casino operations, including hotel,
restaurants and bars. The Company also manages the Gold Coast
Convention and Exhibition Centre on behalf of the Queensland
Government. The Company also owns Broadbeach Island on which the
Gold Coast casino is located.
The Star Entertainment Group posted three consecutive annual net
losses of AUD198.6 million, AUD2.43 billion and AUD1.68 billion for
the years ended June 30, 2022, 2023, and 2024, respectively.
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C H I N A
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CHINA EVERGRANDE: Key Unit Ordered to Liquidate by Hong Kong Court
------------------------------------------------------------------
Bloomberg News reports that a key offshore unit of China Evergrande
Group was ordered to wind up in Hong Kong, the latest legal win for
liquidators trying to access assets of the world's most indebted
developer.
Bloomberg says the decision was presented in a short hearing on
Friday morning [Jan. 10], without much discussion in the courtroom.
A year ago, Evergrande Group was ordered to be wound up in Hong
Kong, becoming the biggest casualty of the country's prolonged
property crisis.
Its liquidators subsequently took a series of steps to recover
funds from the developer, including filing the so-called winding-up
petition against its subsidiary CEG Holdings BVI in September,
Bloomberg relates.
According to Bloomberg, Evergrande's court-approved liquidators are
still navigating its complex structural maze and thorny legal
questions about their reach in mainland jurisdictions where much of
its assets are based. The win plays into their strategy to target
assets within its offshore units. The developer's default in 2021
opened the floodgates to record debt failures by other builders, a
shock to an economy that had relied on real estate to drive
growth.
The unit owns nearly half of Evergrande Property Services Group,
the builder's property management business, which is valued at
HK$7.4 billion, according to Bloomberg-compiled data. Evergrande
Property Services Group was an integral part of its parent's failed
restructuring talks with creditors.
Separately, the liquidators are trying to recover US$6 billion
(HK$46.8 billion) in dividends and remuneration given to seven
individuals, including the developer's founder Hui Ka-yan,
Bloomberg reports. They also began court proceedings against the
builder's auditors and real estate service companies over valuation
reports they produced for Evergrande and its subsidiaries years
ago.
Bloomberg notes that the liquidation ruling is a reminder to
Chinese developers who are still struggling to settle unpaid debt
with creditors amid sluggish property sales.
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.
China Evergrande Group, the second largest real estate developer in
China, and certain of its affiliates sought creditor protection in
the United States under Chapter 15 of the Bankruptcy Code (Bankr.
S.D.N.Y. Lead Case No. 23-11332) on Aug. 17, 2023.
Evergrande, widely known as the most leveraged company in the
world, and its affiliates are asking the U.S. Bankruptcy Court for
the Southern District of New York for recognition of foreign
proceedings as "foreign main" proceeding under Chapter 15.
Evergrande is in the midst of a highly complex restructuring of
around $20 billion in offshore debt. In total, the Company has
more than $300 billion in liabilities.
Evergrande is incorporated in the Cayman Islands as an exempted
company with limited liability, with its principal place of
business located at 15th Floor, YF Life Centre, 38 Gloucester Road,
Wanchai, Hong Kong. It is subject to a restructuring proceeding
entitled In the Matter of China Evergrande Group, concerning a
scheme of arrangement between Evergrande and certain Scheme
Creditors pursuant to the relevant provisions of the Hong Kong
Companies Ordinance (Chapter 622 of the Laws of Hong Kong),
currently pending before the High Court of Hong Kong (Case Number
HCMP 1091/2023.
Affiliate Tianji Holding Limited is incorporated in Hong Kong as a
limited liability company, with its principal place of business
located at 17th Floor, One Island East, Taikoo Place, 18 Westlands
Road, Quarry Bay, Hong Kong. Tianji is subject to a restructuring
proceeding entitled In the Matter of Tianji Holding Limited,
concerning a scheme of arrangement between Tianji and certain
Scheme Creditors, pursuant to the relevant provisions of the Hong
Kong Companies Ordinance and currently pending before the Hong Kong
Court (Case Number HCMP 1090/2023).
Affiliate Scenery Journey Limited is incorporated in the British
Virgin Islands as a limited liability company, with its principal
place of business located at 2nd Floor Water's Edge Building,
Wickham's Cay II, Road Town, Tortola, BVI. Scenery Journey is
subject to a restructuring proceeding entitled In the Matter of
Scenery Journey Limited, concerning a scheme of arrangement between
Scenery Journey and certain Scheme Creditors, pursuant to section
179A of the BVI Business Companies Act, 2004, and currently pending
before the High Court of the Eastern Caribbean Supreme Court (Case
Number BVIHCOM 2023/0076).
U.S. Bankruptcy Judge Michael E Wiles presides over the Chapter 15
proceedings.
Sidley Austin is the Hong Kong Counsel to Evergrande and Tianji.
Maples BVI is the British Virgin Island Counsel to Scenery
Journey.
On Jan. 29, 2024, a Hong Kong court ordered the liquidation of
China Evergrande Group.
COUNTRY GARDEN: Proposes Plan to Cut Debt by Up to USD11.6BB
------------------------------------------------------------
Yicai Global reports that Country Garden Holdings, formerly China's
largest property developer, has proposed a plan to restructure its
overseas debt, aiming to reduce its liabilities by as much as
USD11.6 billion.
Yicai relates that Country Garden has reached a consensus with a
creditor group comprising seven banks, it said on Jan. 9. They hold
48 percent of the firm's outstanding syndicated loans, totaling
USD3.6 billion. But the parties have not yet entered into a legally
binding deal as negotiations are still ongoing.
The Foshan-based homebuilder defaulted on USD11 billion of offshore
bonds in late 2023, Yicai notes. As of Dec. 31 that year, the firm
had total overseas interest-bearing liabilities of USD16.4 billion.
Under the proposal, Country Garden's debt maturity could be
extended to a maximum of 11.5 years, while the weighted average
borrowing cost could be reduced to about 2 percent annually from
around 6 percent, according to Yicai.
Additionally, Country Garden's controlling shareholder is
considering converting a USD1.1 billion loan into shares.
Among the seven lenders, the Bank of China Hong Kong and China
Construction Bank Asia have confirmed that the current framework
serves as a basis for further talks and have committed to
continuing to work with Country Garden, Yicai relays.
The company has received positive feedback from many creditors, who
are willing to offer long-term support to help the builder overcome
its current challenges and complete the restructuring as soon as
possible, Yicai adds citing an informed source. "Country Garden's
proposal is very pragmatic, and many creditors have already
expressed interest," the person said.
As of Dec. 31, Country Garden controlled more than 3,000
development projects, including 29 offshore, Yicai discloses. The
total saleable contract area ranges between 90 million square
meters and 92 million sqm, with around 1.3 million to 1.4 million
parking spaces available for sale.
Last year, Country Garden delivered over 380,000 housing units to
buyers, bringing its three-year total to about 1.7 million.
Analysts note that the firm has passed its peak delivery period,
with only about 200,000 pre-sold units yet to be handed over. Most
are expected to be delivered this half, Yicai notes.
About Country Garden
Country Garden Holdings Company Limited (HKEX:2007), an investment
holding company, invests, develops, and constructs real estate
properties primarily in Mainland China. The company operates in two
segments, Property Development and Construction. It develops
residential projects, such as townhouses and condominiums; and car
parks and retail shops. The company also develops, operates, and
manages hotels. In addition, it researches and develops robots;
sells electronic hardware and food; and provides interior
decoration, agriculture, landscape design, investment and
management consulting, cultural activity planning, and real estate
consulting services.
As reported in the Troubled Company Reporter-Asia Pacific in late
February 2024, Kingboard Holdings-backed money lender Ever Credit
on Feb. 27, 2024, filed a winding-up petition against Country
Garden to the Hong Kong High Court for non-payment of a US$205
million loan.
The TCR-AP reported in late March 2024 that Country Garden has
hired Kroll to carry out a liquidation analysis. Kroll, the New
York-headquartered financial advisory firm, is expected to conduct
an independent business review of Country Garden before projecting
a recovery rate for the developer's creditors under a liquidation
scenario, according to Reuters.
The developer defaulted on US$11 billion of offshore bonds last
year and is in the process of an offshore debt restructuring.
SHIMAO GROUP: Receives Liquidation Petition Over CNY258MM Loan
--------------------------------------------------------------
Reuters reports that Shimao Group said on Jan. 10 that CPYM Link
Investment Limited had filed a liquidation petition against the
company in the Hong Kong high court regarding a CNY258 million
(US$35.19 million) cross-border loan guarantee provided by the
property developer.
The court has set the first hearing for the petition on March 19,
2025, Reuters discloses.
This is the second case of such petitions against Chinese property
developers in the last two days, Reuters notes. On Jan. 9, a
petition was filed against embattled property developer Sunac China
to wind down by asset manager China Cinda Asset Management.
Reuters says several property developers, including China
Evergrande and Country Garden, have faced or are currently facing
liquidation cases in Hong Kong since the property sector was hit by
a liquidity crunch in 2021.
The crisis has forced Beijing to introduce a series of measures
over the past years to revive the debt-ridden property sector in
the world's second-largest economy, Reuters notes.
About Shimao Group
China-based Shimao Group Holdings Ltd, formerly Shimao Property
Holdings Ltd, is an investment holding company principally engaged
in the sale of properties. The Company operates its business
through four segments. The sales of Properties segment is mainly
engaged in the development of residential real estate. The Property
Management Income and Others is mainly engaged in property
management. The Hotel Operation Income segment is mainly engaged in
hotel operations. The Commercial Properties Operation Income
segment is mainly engaged in the development, investment and
operation of commercial, office and industrial park property
projects.
As reported in the Troubled Company Reporter-Asia Pacific, Shimao
Group has missed the interest and principal payment of a US$1
billion offshore bond due on July 3, 2022.
SUNAC CHINA: receives liquidation petition in Hong Kong
-------------------------------------------------------
Jackie Cai at Bloomberg News reports that defaulted builder Sunac
China Holdings has received a liquidation petition in Hong Kong,
according to the city's judiciary website.
Bloomberg relates that the so-called winding-up petition was filed
by China Cinda HK Asset Management, and a hearing is scheduled to
take place on March 19, the website shows.
According to Bloomberg, the case signals renewed financial and
legal stress for the Chinese developer, which first defaulted on a
US dollar bond in 2022.
Sunac successfully restructured its offshore debt in 2023, but
growing concerns about its capability to service payment
obligations under that overhaul have pushed its stock and bond
prices to the lowest level in several months.
A winding-up petition was filed against Sunac several months after
the firm's initial default, but it was withdrawn in mid-2023, the
report notes.
China's private-sector developers have yet to escape a years-long
downturn in the country's property market as sales of new homes
remain weak, Bloomberg states.
About Sunac China
Sunac China Holdings Limited (SEHK:1918) --
http://www.sunac.com.cn/-- engages in the sales of properties in
the People's Republic of China. The Company operates its business
through two segments: Property Development and Property Management
and Others. The Company's subsidiaries include Sunac Real Estate
Investment Holdings Ltd., Qiwei Real Estate Investment Holdings
Ltd. and Yingzi Real Estate Investment Holdings Ltd.
Sunac is among a string of Chinese property developers that have
defaulted on their offshore debt payment obligations since the
sector was hit by a liquidity crisis in 2021, roiling global
markets, according to Reuters.
Creditors of Sunac China Ltd have approved its $9 billion offshore
debt restructuring plan, the company said on Sept. 18, 2023,
marking the first approval of such debt overhaul by a major Chinese
property developer.
Sunac China Holdings Limited sought creditor protection in the
United States under Chapter 15 of the Bankruptcy Code (Bankr.
S.D.N.Y. Case No. 23-11505) on Sept. 19, 2023. U.S. Bankruptcy
Judge Philip Bentley presides over the Chapter 15 proceedings.
Sidley Austin is the legal counsel to Sunac China.
=========
I N D I A
=========
AERON EXPORTS: CRISIL Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Aeron Exports
Private Limited (AEPL) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 15 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AEPL for
obtaining information through letter and email dated December 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AEPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AEPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
AEPL continues to be 'CRISIL D Issuer not cooperating'.
AEPL was incorporated in 2012 by promoter, by Mr Jainam Shah and
his family members. The Vadodara-based company trades in products
such as iron dust and steel scrap.
ALBYS AGRO: Ind-Ra Moves D Rating to NonCooperating
---------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Albys Agro Private Limited to the non-cooperating category as per
Ind Ra's policy on Issuer Non-Cooperation, following non-submission
of No Default Statement continuously for 3 months despite
continuous requests and follow-ups by the agency and also IND-Ra's
inability to validate timely debt servicing through other sources
it considers reliable. No Default Statement in the format
prescribed by SEBI is required to be shared by the issuer every
month as a confirmation that all financial obligations are being
serviced on time. Investors and other users are advised to take
appropriate caution while using these ratings. The rating will now
appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR550 mil. Fund Based Working Capital Limit Migrated to non-
cooperating category with IND D (ISSUER NOT COOPERATING)
rating; and
-- INR15 mil. Non-Fund Based Working Capital Limit migrated to
non-cooperating category with IND D (ISSUER NOT COOPERATING)
rating.
Note: ISSUER NOT COOPERATING: Issuer did not co-operate, based on
best available information. Ind-Ra is unable to provide an update,
as the agency does not have adequate information to review the
ratings.
Non-Cooperation by the Issuer
Ind-Ra has not received No Default Statement continuously for 3
months despite continuous requests and follow-ups by the agency.
Ind-Ra had consistently followed up with Albys Agro Private Limited
over emails starting from October 30, 2024, apart from phone
calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Albys Agro Private
Limited on the basis of best available information and is unable
to provide a forward-looking credit view. Hence, the current
outstanding rating might not reflect Albys Agro Private Limited's
credit strength. If an issuer does not provide timely No Default
Statement, it indicates weak governance, particularly in 'Timely
debt servicing'. The agency may also consider this as symptomatic
of a possible disruption / distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
About the Company
AAPL commenced operations in 2017 with the unit at Zuarinagar, Goa.
The company is engaged in production and export of sea food
products majorly shrimps. AAPL has an installed capacity of 4,950
tons per annum.
BAJORIA AGRO: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Bajoria Agro
Processing Private Limited (BAPPL) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.75 CRISIL D (Issuer Not
Cooperating)
Proposed Cash
Credit Limit 0.35 CRISIL D (Issuer Not
Cooperating)
Term Loan 4.90 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with BAPPL for
obtaining information through letter and email dated December 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BAPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BAPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
BAPPL continues to be 'CRISIL D Issuer not cooperating'.
Incorporated in 2013, BAPPL manufactures wheat based products
including maida, sooji, rava and atta. Its manufacturing facility
at Abohar, Punjab had a production capacity of about 10 tonne/hour.
It commenced commercial operations in August 2015.
BENARJEE POULTRY: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Benarjee
Poultry Farms (BPF) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.8 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 1.4 CRISIL D (Issuer Not
Cooperating)
Term Loan 3.8 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with BPF for
obtaining information through letter and email dated December 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BPF, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BPF
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
BPF continues to be 'CRISIL D Issuer not cooperating'.
Established in 2009 in Krishna district in Andhra Pradesh, Partners
are Ms. Prathiba Bharathi and K Benarjee. BPF is engaged in the
poultry business.
BEST IT WORLD: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Best It World
India Private Limited (BIWIPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Rating - CRISIL D (ISSUER NOT
COOPERATING)
Short Term Rating - CRISIL D (ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with BIWIPL for
obtaining information through letter and email dated December 09,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BIWIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
BIWIPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the ratings on bank
facilities of BIWIPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Mumbai-based BIWIPL, incorporated in 1996, distributes and markets
computer systems, computer peripherals, networking, laptop, tablet
and allied accessories under the brand, 'i-Ball'. The company is
promoted by Mr Sandeep Parasrampuria, Mr. Rakesh Shah, Mr Anil
Parasrampuria, Mr. Sunil Kedia and Mr. Vijay Dalmia.
BHARAT CONSTRUCTIONS: CRISIL Keeps D Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Bharat
Constructions - Jammu (BCJ) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 4 CRISIL D (Issuer Not
Cooperating)
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with BCJ for
obtaining information through letter and email dated December 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BCJ, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BCJ
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
BCJ continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Incorporated in early 1970's as a partnership firm, Bharat
Constructions (BC) undertakes construction of roads and Buildings
(barracks, Quarters etc) for military accommodation. Government
authorities in Northern part of the country. The firm is promoted
by Mr. Bharat B Sharma and family members.
BLESSINGS RESORTS: CRISIL Keeps D Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Blessings
Resorts Private Limited (BRPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 3 CRISIL D (Issuer Not
Cooperating)
Term Loan 29 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with BRPL for
obtaining information through letter and email dated December 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of BRPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on BRPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
BRPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Set up in 2011 by Mr Harpinder Singh Gill and Mr Rajesh Aggarwal,
BRPL is setting up a 3-star, 80-room hotel with banquet in Phagwara
under the 'Park Inn by Radisson' brand. The company has tied up
with Carlson Hotels Asia Pacific Pty Ltd.
CHINTPURNI STEEL: Ind-Ra Withdraws BB+ Term Loan Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn the ratings on
Chintpurni Steel Private Limited's bank facilities as follows:
-- The 'IND A4+ (ISSUER NOT COOPERATING)' rating on the INR15
mil. Non-fund-based facilities is withdrawn;
-- The 'IND BB+ (ISSUER NOT COOPERATING)' rating on the INR7.60
mil. Term loan issued on March 31, 2017 is withdrawn; and
-- The 'IND BB+ (ISSUER NOT COOPERATING)/ IND A4+ (ISSUER NOT
COOPERATING)' rating on the INR150 mil. Fund-based facilities
is withdrawn.
Detailed Rationale of the Rating Action
Ind-Ra is no longer required to maintain the ratings, as the agency
has received no-dues certificates from the lenders and a withdrawal
request from the issuer. This is consistent with Ind-Ra's Policy on
Withdrawal of Ratings. Ind-Ra will no longer provide analytical and
rating coverage for the company.
About the Company
Incorporated in 2004, Chintpurni Steel manufactures sponge iron and
mild steel (MS) ingots. The company also trades in iron-ore and its
by-product. Its manufacturing facility is located at Ramgarh,
Jharkhand, with an installed capacity of 60,000 tons per annum
(TPA) for sponge iron and 37,800TPA for MS ingots. The company is
managed by Dhananjai Kumar Manek, Bajrang Lal Agarwal, Jamnadass
Manek and Kamal Kishore Singhania.
JAMPANA PADMAVATHI: ICRA D Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has kept the Long-Term rating of Jampana Padmavathi (JP) in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 8.80 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating downgraded from
Term Loan [ICRA]B (Stable) and continues to
remain under 'Issuer Not
Cooperating' category
Long Term- 1.20 [ICRA]D; ISSUER NOT COOPERATING;
Unallocated Rating downgraded from
[ICRA]B (Stable) and continues to
remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with JP, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Jampana Padmavathi (JP) is a proprietorship concern established in
FY15. The business activities include the construction of go-downs
and leasing out to FCI. The entity is in the process of
constructing 4 godowns with an aggregate capacity of 32000 MT in
koripalli village, Karapa station on Vijayawada division with an
estimated project cost of INR11.74 crore. The project
funded by term loans of INR8.80 crore, INR2.19 crore of equity,
INR0.75 crore of unsecured loans.
JAY PARVATI: ICRA Keeps B Debt Ratings in Not Cooperating
---------------------------------------------------------
ICRA has kept the Long-Term rating of Jay Parvati Cold Storage
(JPCS) in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 2.93 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 3.79 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with JPCS, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Established in June 2014, Jay Parvati Cold Storage (JPCS) has set
up a cold storage facility located at Deesa, in Banas kantha
district of Gujarat and has commenced operations from 15th February
2015. It is engaged in the business of operating a cold storage to
store potatoes and has a total capacity to stock 153,000 3 bags of
potato of 50 kg each or 7650 MT of potatoes. The firm has been
promoted by Mali and Parmar family who has long experience in
potato farming and trading business.
K E AGRO: CRISIL Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of K E Agro
Products Private Limited (KEAPPL) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B+/Stable (Issuer Not
Cooperating)
Long Term Loan 1.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Long Term 0.5 CRISIL B+/Stable (Issuer Not
Bank Loan Facility Cooperating)
Working Capital 2 CRISIL B+/Stable (Issuer Not
Demand Loan Cooperating)
CRISIL Ratings has been consistently following up with KEAPPL for
obtaining information through letter and email dated December 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of KEAPPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on
KEAPPL is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the rating on bank
facilities of KEAPPL continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Based in Kottayam, Kerala, KEAPPL was incorporated in 2002 by Mr
Thomas Mathew and his family. The company processes rice and has
capacity of 120 tonne per shift.
K. PRASAD: ICRA Keeps B Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
ICRA has kept the Long-Term ratings of K. Prasad Babu in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 6.00 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 2.00 [ICRA]B (Stable) ISSUER NOT
Non Fund Based COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with K. Prasad Babu, ICRA has been trying to seek information from
the entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
The firm was incorporated by Mr. K. Anantha Rao in the year 1983 as
sole proprietorship and was engaged in civil construction works and
is registered class 1 civil contractor with government of India.
Post the death of Mr. K Anantha Rao in June, 2014 his legal heir
K.Prasad Babu has taken over all the outstanding orders of his
father and floated a new firm K.Prasad Babu as
sole proprietorship. The firm is primarily engaged in construction
of offices, Hospitals, Govt. residential complexes & blocks,
Godowns, schools etc. for government agencies. Group Firm: Aruna
Enterprises – It is a partnership firm established in the year
1984 and is an investment firm, which invests in shares, chit funds
and also gives unsecured hand loans. The financial details of the
firm are not shared with ICRA. Aruna Builders - M/s. Aruna Builders
is a partnership firm and is engaged in property development in and
around Srikakulam District of Andhra Pradesh.
KAILASH DAIRY: CRISIL Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Kailash Dairy
Limited (KDL) continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B+/Stable (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with KDL for
obtaining information through letter and email dated December 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of KDL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KDL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
KDL continues to be 'CRISIL B+/Stable Issuer not cooperating'.
KDL was originally established in 1960 as a partnership firm by Mr.
Satya Prakash Agarwal and Mr. Vijendra Agarwal; the firm was
reconstituted as a private limited company in 1987, and then as a
public limited company in 2001. The company processes milk and
manufactures milk products; it is an ISO-certified manufacturer.
Its facility is located in Meerut region of Uttar Pradesh. The
company markets its products under the brand Kailash.
KALA CHAND: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Kala Chand
Bose (KCB) continue to be 'CRISIL B+/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.41 CRISIL B+/Stable (Issuer Not
Cooperating)
Proposed Cash 0.59 CRISIL B+/Stable (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with KCB for
obtaining information through letter and email dated December 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of KCB, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KCB
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
KCB continues to be 'CRISIL B+/Stable Issuer not cooperating'.
Kala Chand Bose (KCB) was set up as a partnership between Mr Kala
Chand Bose and Mrs Protima Rani Bose, based in Burdwan, West
Bengal. The firm undertakes trade in potatoes, mainly in West
Bengal, Bihar, Jharkhand and Odisha.
KANS WEDDING: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Kans Wedding
Centre (KWC) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6.78 CRISIL D (Issuer Not
Cooperating)
Cash Credit 1.82 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 1.22 CRISIL D (Issuer Not
Cooperating)
Proposed Working 0.18 CRISIL D (Issuer Not
Capital Facility Cooperating)
CRISIL Ratings has been consistently following up with KWC for
obtaining information through letter and email dated December 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of KWC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KWC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
KWC continues to be 'CRISIL D Issuer not cooperating'.
KWC, incorporated in 2009, is promoted Mr K A Niyas and his family,
who have been in this line of business for over two decades. It is
Kerala's largest wedding apparel retail firm, offering over 10,000
branded products. The firm has three operational retail stores in
Kerala.
KIJALK INFRASTRUCTURE: CRISIL Keeps B+ Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Kijalk
Infrastructure Private Limited (KIPL) continues to be 'CRISIL
B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 9 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL Ratings has been consistently following up with KIPL for
obtaining information through letter and email dated December 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of KIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
KIPL continues to be 'CRISIL B+/Stable Issuer not cooperating'.
KIPL was incorporated in 2006 by Mr. Ashok Kumar Verma and his
brother, Mr. Surendra Kumar Verma. However, there were no
operations till 2011. The company presently operates a 2 MW solar
power plant in Raj Nagar, Jharkhand, which was commissioned in
February 2012.
L.L. LOGISTICS: Ind-Ra Assigns BB+ Bank Loan Rating
---------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following rating
actions on L.L. Logistics Private Limited's (LLLPL) debt
instruments as follows:
-- INR80 mil. Non-fund-based working capital limit assigned with
IND A4+ rating;
-- INR90.46 mil. Proposed term loan assigned with IND BB+/Stable
rating;
-- INR44 mil. Term loan due on April 29, 2029 assigned with IND
BB+/Stable rating;
-- INR15 mil. Fund-based working capital limit affirmed with IND
BB+/Stable/IND A4+ rating; and
-- INR170.54 mil. Term loan due on February 28, 2026 affirmed
with IND BB+/Stable rating.
Detailed Rationale of the Rating Action
The affirmation reflects LLLPL's continued small scale of
operations, modest EBITDA margins and credit metrics, and stretched
liquidity in FY24. Ind-Ra expects the revenue to improve in FY25
due to a likely rise in rental space. However, the agency expects
the EBITDA margins to increase marginally in FY25, and the credit
metrics to improve slightly but remain modest due to the ongoing
debt-led capex.
The ratings are supported by the promoters nearly two decade of
experience in long-term leasing of warehouses, leading to
established relationships with customers. The ratings also benefit
from the locational advantages of its warehouses.
Detailed Description of Key Rating Drivers
Continued Small Scale of Operations: In FY24, LLLPL's revenue
increased to INR73.26 million in FY24 (FY23: INR59.59 million) due
to the construction of three warehouses during FY23-FY24 and an
increase in the capacity of rental units to 735,000 sf (FY24:
617,600 sf). During FY24, the company constructed two new
warehouses having a total area of 175,839sf, which were leased from
1 September 2023. The EBITDA increased to INR57.33 million in FY24
(FY23: INR43.71 million) due to improved operating leverage. Ind-Ra
expects the revenue to increase in the long-term on account of the
increase in rent, along with a larger rental space.
Continued Modest EBITDA Margins: In FY24, the EBITDA margins
remained modest despite increasing to 78.26% in FY24 (FY23: 73.35%)
due to a decrease in administrative costs due to benefits from
scale of operations. In FY24, the return on capital employed stood
at 4.7% (FY23: 4.5%). In 7MFY25, LLLPL booked an EBITDA margin of
86.19%. Ind-Ra expects the margins to improve in FY25 on account of
better absorption of fixed costs.
Continued Modest Credit Metrics: The gross interest coverage
(operating EBITDA/gross interest expense) deteriorated to 2.84x in
FY24 (FY23: 3.24x) and net leverage (adjusted net debt/operating
EBITDAR) to 11.10x (9.50x) mainly due to an increase in the debt to
INR636.38 million (INR415.30 million) to fund the ongoing
debt-funded capex. The increased debt led to a higher interest
expense of INR20.20 million in FY24 (FY23: INR13.47 million).
Ind-Ra expects the credit metrics to slightly improve in FY25 on
account of the likely increase in operating profitability.
Experienced Promoters: The promoters have a decade-long experience
in long-term leasing of warehouses, leading to established
relationships with customers such as Hindustan Unilever Limited,
Godrej & Boyce Mfg. Co. Ltd., TVS Supply Chain Solutions Limited
('IND AA'/Stable) and Havells India Limited. On an average, the
company enters into a nine-year contract with its tenants. It has a
rent escalation clause in all its contracts, wherein the rent is
escalated either by 5% every year or 15% after three years.
Locational Advantage: The company's warehouse, G D Logistic Park,
is among the leading warehouses in Raipur. It is centrally located
and well connected to the neighborhood with proximity to railway
station and national highways.
Liquidity
Stretched: The average maximum utilization of the fund-based limits
was 95.27% during the 12 months ended October 2024. The cash flow
from operations turned negative to INR73.37 million in FY24 (FY23:
INR15.09 million) owing to unfavorable changes in working capital.
In FY24, the free cash flow remained negative and deteriorated
further to INR207.34 million (FY23: negative INR169.71 million) due
to the capex. The company does not have any planned capex in FY25
but will incur capex in FY26 towards building of additional
warehouses. LLLPL had cash and cash equivalents of INR0.93 million
at FYE24 (FYE23: INR0.60 million). Furthermore, the company does
not have any capital market exposure and relies on banks and
financial institutions to meet its funding requirements. LLLPL has
scheduled repayments of INR45.8 million in FY25 and INR41.4 million
in FY26. Ind-Ra expects the company's average cash debt service
coverage ratio to remain modest above 1.0x over FY25-FY27 and any
shortfall will be funded by infusing unsecured loans.
Rating Sensitivities
Negative: Any delays in receipt of rental income, leading to
deterioration in the liquidity position or credit metrics, on a
sustained basis, will be negative for the ratings.
Positive: A significant improvement in the scale of operations,
leading to a higher cash generation and/or a substantial decline in
the debt, thereby leading to the debt service coverage ratio
increasing above 1.15x on a sustained basis will be positive for
the ratings.
About the Company
Incorporated in 2007, LLLPL operates nine warehouses and a cold
storage under the name G D Logistics Park in Raipur. The company's
registered office is in Kolkata.
LAXMINARAYAN INDUSTRIES: ICRA Keeps B+ Ratings in Not Cooperating
-----------------------------------------------------------------
ICRA has kept the Long-Term ratings of Laxminarayan Industries
(LNI) in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 6.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based/ COOPERATING; Rating
Cash Credit continues to remain under
'Issuer Not Cooperating'
Category
Long Term- 1.24 [ICRA]B+ (Stable) ISSUER NOT
Non Fund Based/ COOPERATING; Rating
continues to remain under
'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with LNI, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Laxminarayan Industries (LNI) was established in 1996 at Surat,
Gujarat. The company is engaged in the dyeing of grey fabric and
yarns on a job work basis. The customers of the company supply the
fabric, which is further processed, viz. dyed at the company's
manufacturing facility. The fabric processed by the company finds
application majorly in designing dress materials.
MAHALAXMI COTTON: ICRA Keeps B Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-Term ratings of Mahalaxmi Cotton in the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 6.00 [ICRA]B (Stable) ISSUER NOT
Fund-based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 1.56 [ICRA]B (Stable) ISSUER NOT
Fund-based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Mahalaxmi Cotton, ICRA has been trying to seek information
from the entity so as to monitor its performance. Further, ICRA has
been sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Mahalaxmi Cotton was established in 2013 and commenced commercial
operations from the month of December of the same year. The firm is
engaged in the business of cotton ginning in its manufacturing
plant located in Kadi having total installed capacity of 25000
bales per annum. Further, the firm commenced crushing of cotton
seeds with a manufacturing facility on lease near Kadi, Gujarat
with a capacity of 8000 MTPA in FY2015. The firm is currently
managed by five partners who have been engaged in the cotton
ginning business for over 15 years.
MANGALDEEP COLD: ICRA Keeps 'B' Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has kept the Long-Term ratings of Mangaldeep Cold Storage
(MCS) in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]B (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 2.85 [ICRA]B (Stable) ISSUER NOT
Fund-based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 4.10 [ICRA]B (Stable) ISSUER NOT
Fund-based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with MCS, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Incorporated in May 2014, Mangaldeep Cold Storage (MCS) has set up
a cold storage facility located at Deesa, in Banas kantha district
of Gujarat and has commenced operations from 20th February 2015. It
is engaged in the business of operating a cold storage to store
potatoes and has a total capacity to stock 158,000 3 bags of potato
of 50 kg each or 7900 MT of potatoes. The firm is promoted by six
partners who have a long-standing experience in potato farming as
well as an established track record of operating cold storages by
the virtue of their association with other potato cold storages in
the region.
NATURAL COIR: CRISIL Keeps B+ Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Natural Coir
Industries (NCI; part of Benlion group) continue to be 'CRISIL
B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 1.5 CRISIL B+/Stable (Issuer Not
Cooperating)
Export Packing 6.5 CRISIL B+/Stable (Issuer Not
Credit Cooperating)
CRISIL Ratings has been consistently following up with NCI for
obtaining information through letter and email dated December 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of NCI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NCI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
NCI continues to be 'CRISIL B+/Stable Issuer not cooperating'.
For arriving at its ratings, CRISIL Ratings has combined the
business and financial risk profiles of NCI with Benlion Coir
Industries (BCI). This is because both the entities, together
referred to as the Benlion group, operate in similar lines of
business, with a common management team and significant operational
linkages.
NCI, set up in 2007, manufactures coconut peat and coir fibre. BCI,
set up is 2005, also operates in the same line of business. The
group is based in Pollachi (Tamil Nadu) and its day-to-day
operations are managed by managing partners Mr. Saju Mathew and Mr
Benny Mathew.
NILKANTH COTTON: ICRA Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-Term ratings of Nilkanth Cotton Industries
(NCI) in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 6.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term- 2.05 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with NCI, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Nilkanth Cotton Industries (NCI) was set up as a partnership firm
in the year 2014. It is engaged in the business of manufacturing
cotton bales and cotton seed oil through ginning and pressing of
raw cotton (kapas) and cotton seed crushing activity. The firm's
manufacturing facility is located at Rajkot, Gujarat and is
equipped with 24 ginning, 1 pressing machine and 5 expellers for
crushing of cotton seeds with the processing capacity of ~18,144 MT
of raw cotton and 2160 MT of seeds annually.
NIMRA EDUCATIONAL: ICRA Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has kept the Long-Term ratings of Nimra Educational Society
(NES) in the 'Issuer Not Cooperating' category. The rating is
denoted as "[ICRA]D; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 4.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
Long-term- 35.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Term Loan 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with NES, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
NES was set up in 1991 by Dr. Mohammed Vizarath Rasool Khan under
the Andhra Pradesh Societies Registration Act, 1350 Fasli. The
society operates four colleges in and around Vijayawada in Andhra
Pradesh, offering varied courses, such as Bachelor of Technology,
Bachelor of Pharmacy, Master of technology, Master of computer
application, Master of pharmacy and Master of business
administration. Currently, NES operates two engineering colleges,
one pharmacy college, and one business Management College, with
total student strength of 1584. All the colleges are affiliated to
the Jawaharlal Nehru Technical University, Kakinada (Andhra
Pradesh).
NORTELS SERVICE: CRISIL Keeps B- Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Nortels
Service Apartments Private Limited (NSAPL) continue to be 'CRISIL
B-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 5.7 CRISIL B-/Stable (Issuer Not
Cooperating)
Proposed Long Term 4.3 CRISIL B-/Stable (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with NSAPL for
obtaining information through letter and email dated December 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of NSAPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NSAPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
NSAPL continues to be 'CRISIL B-/Stable Issuer not cooperating'.
NSAPL, incorporated in 2000, manages service apartments in Chennai.
The company is promoted by Mr. Sri Krishnan, Mr. Sunil Nair, Mr. A
Murugappan, Mr. S Narayanan, and Mr. Lui Ki.
OCTOCHEM PHARMA: Ind-Ra Moves BB- Rating to NonCooperating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
OCTOCHEM PHARMA AND FLAVOURS PRIVATE LIMITED to the non-cooperating
category as per Ind Ra's policy on Issuer Non-Cooperation,
following non-submission of No Default Statement continuously for 3
months despite continuous requests and follow-ups by the agency and
also IND-Ra's inability to validate timely debt servicing through
other sources it considers reliable. No Default Statement in the
format prescribed by SEBI is required to be shared by the issuer
every month as a confirmation that all financial obligations are
being serviced on time. Investors and other users are advised to
take appropriate caution while using these ratings. The rating will
now appear as 'IND BB-/Negative (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating actions are:
-- INR310 mil. Fund Based Working Capital Limit Outlook revised
to Negative; rating migrated to non-cooperating category with
IND BB-/Negative (ISSUER NOT COOPERATING)/IND A4+ (ISSUER NOT
COOPERATING) rating; and
-- INR80 mil. Term Loan due on March 31, 2031 Outlook revised to
Negative; rating migrated to non-cooperating category with
IND BB/Negative (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not co-operate, based on
best available information. Ind-Ra is unable to provide an update,
as the agency does not have adequate information to review the
ratings.
Non-Cooperation by the Issuer
Ind-Ra has not received No Default Statement continuously for 3
months despite continuous requests and follow-ups by the agency.
Ind-Ra had consistently followed up with OCTOCHEM PHARMA AND
FLAVOURS PRIVATE LIMITED over emails starting from October 30,
2024, apart from phone calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of OCTOCHEM PHARMA AND
FLAVOURS PRIVATE LIMITED on the basis of best available information
and is unable to provide a forward-looking credit view. Hence, the
current outstanding rating might not reflect OCTOCHEM PHARMA AND
FLAVOURS PRIVATE LIMITED's credit strength. If an issuer does not
provide timely No Default Statement, it indicates weak governance,
particularly in 'Timely debt servicing'. The agency may also
consider this as symptomatic of a possible disruption / distress in
the issuer's credit profile. Therefore, investors and other users
are advised to take appropriate caution while using these ratings.
About the Company
OPAFPL is private limited company incorporated on December 1, 2020,
by Chandan Agarwal, Shyam Agarwal and Dinesh Kumar Agarwal and the
family. The company started operations in FY23 and is manufacturing
and trading of essential oils such as mentha, menthol, mentha
crystals among others at its facilities in Chandausi, Uttar
Pradesh.
PARCOS TILES: Ind-Ra Moves BB+ Rating to NonCooperating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Parcos Tiles LLP to the non-cooperating category as per Ind Ra's
policy on Issuer Non-Cooperation, following non-submission of No
Default Statement continuously for 3 months despite continuous
requests and follow-ups by the agency and also IND-Ra's inability
to validate timely debt servicing through other sources it
considers reliable. No Default Statement in the format prescribed
by SEBI is required to be shared by the issuer every month as a
confirmation that all financial obligations are being serviced on
time. Investors and other users are advised to take appropriate
caution while using these ratings. The rating will now appear as
'IND BB+/Negative (ISSUER NOT COOPERATING)' on the agency's
website.
The instrument-wise rating actions are:
-- INR80 mil. Fund Based Working Capital Limit Outlook revised to
Negative; rating migrated to non-cooperating category with
IND BB+/Negative (ISSUER NOT COOPERATING) rating;
-- INR23.62 mil. Fund Based Working Capital Limit Outlook revised
to Negative; rating migrated to non-cooperating category with
IND BB+/Negative (ISSUER NOT COOPERATING) rating;
-- INR70 mil. Non-Fund Based Working Capital Limit Outlook
revised to Negative; rating migrated to non-cooperating
category with IND A4+ (ISSUER NOT COOPERATING) rating; and
-- INR176.38 mil. Term Loan Outlook revised to Negative; rating
migrated to non-cooperating category with IND BB+/Negative
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not co-operate, based on
best available information. Ind-Ra is unable to provide an update,
as the agency does not have adequate information to review the
ratings.
Non-Cooperation by the Issuer
Ind-Ra has not received No Default Statement continuously for 3
months despite continuous requests and follow-ups by the agency.
Ind-Ra had consistently followed up with Parcos Tiles LLP over
emails starting from October 30, 2024, apart from phone calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Parcos Tiles LLP on the
basis of best available information and is unable to provide a
forward-looking credit view. Hence, the current outstanding rating
might not reflect Parcos Tiles LLP's credit strength. If an issuer
does not provide timely No Default Statement, it indicates weak
governance, particularly in 'Timely debt servicing'. The agency may
also consider this as symptomatic of a possible disruption /
distress in the issuer's credit profile. Therefore, investors and
other users are advised to take appropriate caution while using
these ratings.
About the Company
PTLLP was incorporated in 2016 and manufactures coastline tiles and
vitrified tiles at its facility in Morbi, Gujarat.
POONAM TRADING: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Poonam
Trading Company (PTC) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL D (Issuer Not
Cooperating)
Inland/Import 4 CRISIL D (Issuer Not
Letter of Credit Cooperating)
Inland/Import 13 CRISIL D (Issuer Not
Letter of Credit Cooperating)
CRISIL Ratings has been consistently following up with PTC for
obtaining information through letter and email dated December 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PTC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PTC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PTC continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Set up in 1998 and based in Tenkasi, Tamil Nadu, PTC trades in and
processes timber. It is promoted and managed by Mr. Navin Patel and
Mr. Haresh Patel.
PRASHANTI CORPORATION: Ind-Ra Affirms BB Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Prashanti
Corporation's (PC) term loan as follows:
-- INR900 mil. Term loan due on July 31, 2027 affirmed with
IND BB/Stable rating.
Detailed Rationale of the Rating Action
The affirmation reflects PC's modest offtake and collection with
high unsold inventory, time and cost overrun risks related to the
ongoing project The Emerald. Furthermore, PC has not yet achieved
financial closure, leading to a medium offtake risk. Ind-Ra expects
the bookings to increase as the project approaches completion. The
ratings are, however, supported by the promoter's more than three
decades of experience in this industry and the project's
well-connected locality.
Detailed Description of Key Rating Drivers
Modest Offtake and Collection with High Unsold Inventory: At
end-October 2024, out of the total 156 units, only 14 units (9%)
were sold. 19% of the project's total cost is planned to be met
through customer's advances. Furthermore, at end-October 2024, the
firm had pending receivables of around INR209.56 million against
the pending construction cost of INR732.2 million. Ind-Ra expects
the booking velocity to increase in the medium term as the project
approaches completion.
Financial Closure yet to be Achieved: At end-October 2024, the
project was 73% completed and the balance project cost of INR732.2
million was planned to be met by using a debt of INR292.2 million,
promoters' infusion of around INR50.7 million and sales collection
of INR432.8 million. After factoring in the undisbursed debt and
the committed receivables, PC is required to make an additional
sale of around INR230.44 million accounting for 6.4% of the total
remaining cost to achieve a financial closure for completing the
project.
Time and Cost Overrun Risk: The total cost of the project is
estimated to be INR2,802.4 million, which is to be funded by
promoters' contribution of INR670 million (24%), unsecured loans of
INR695.6 million (25%), customer advances of INR536.8 million (19%)
and a term loan of INR900 million (32%). At end-August 2024, the
project was 73% completed. PC has incurred INR2,070.2 million,
which is funded through promoters' contribution of INR780.4
million, unsecured loans of INR534.5 million, term loan of INR607.8
million and customer advances of around INR104 million. Although
the project's progress is in line with the execution schedule, the
ongoing projects remain vulnerable to the time and cost overrun
risks.
Well-connected Locality: The Emerald is located at VIP Vesu Road,
Surat, which is a prime locality in the city. The project is within
6kms from the local airport, 5.8kms from the Surat Diamond Bourse
and around 12.7kms from the local railway station.
Promoters' Experience: However, the rating is supported by its
promoters' (Bhikhalal Moradia and Gordhan Bhai Moradia) more than
three decades of experience in the building construction segment.
The group has completed projects of 35,31,000 square feet till
end-December 2024.
Liquidity
Stretched: The rating is constrained by a likely cash flow-mismatch
risk if the advances from customers are lower than Ind-Ra's
expectations. The firm does not have any exposure to the capital
market and relies on bank loans and promoter funds to meet its
funding requirements. PC's cash balance at end-March 2024 stood at
INR6.16 million (FYE23: INR8.26 million). The company has
scheduled debt repayments of INR150 million, INR600 million and
INR150 million in FY26, FY27 and FY28, respectively. The minimum
debt service coverage ratio, as per the management, will be 1.09x
during FY25-FY28.
Rating Sensitivities
Negative: Time or cost overruns and lower-than-Ind-Ra-expected
sales volume or lower realization from bookings, leading to
stressed cash flows, could lead to a negative rating action.
Positive: Higher-than-expected sales and the timely receipt of
advances from customers, leading to stronger cash flows, could lead
to a positive rating action.
About the Company
PC was incorporated as a partnership firm in 2011. It constructs
residential projects. Located at VIP Road, Vesu, Surat, Gujarat,
the company has one ongoing project- The Emerald (luxury five BHK
apartments), which has a total saleable area of 5,16,347 square
feet.
RAJ-SNEH AUTO: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Raj-Sneh Auto
Wheels Private Limited (RAWPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
Inventory Funding
Facility 5 CRISIL D (Issuer Not
Cooperating)
Inventory Funding
Facility 5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RAWPL for
obtaining information through letter and email dated December 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RAWPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RAWPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
RAWPL continues to be 'CRISIL D Issuer not cooperating'.
Incorporated on October 29, 2016, and promoted by Mr. Priyank Jain,
Mr. Mayank Gupta, and Mr. Ashish Jain, RAWPL has Maruti's Nexa
dealership in Meerut. It operates under the 3S (sales, service, and
spares) system for all the Nexa models (Baleno and S-Cross).
RAJENDRAGURU GROUP: CRISIL Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Rajendraguru
Group (RG) continues to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 24 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RG for
obtaining information through letter and email dated December 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RG, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RG is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the rating on bank facilities of RG
continues to be 'CRISIL D Issuer not cooperating'.
RG was established in 2016 as a partnership firm by Mr Rishabh Jain
and Mr Kishor Jain. The firm is setting up a cotton ginning unit in
Vijayapura, Karnataka.
RAJSHREE IMPEX: CARE Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Rajshree
Impex Private Limited (RIPL) continue to be 'CRISIL D/CRISIL D
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 2 CRISIL D (Issuer Not
Cooperating)
Cash Credit 4 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 3.53 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.47 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with RIPL for
obtaining information through letter and email dated December 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RIPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RIPL continues to be 'CRISIL D/CRISIL D Issuer not cooperating'.
Incorporated in April 2014, RIPL is engaged into manufacturing of
women ready-made garments(ladies kurti) for brands like W, Vatsal
experience etc. RIPL is promoted by Mr. Chandakh and Mr.Laxman. Its
manufacturing facility is located at Jodhpur, Rajasthan with an
installed capacity of 50000 kurtis/month.
RAM IMPEX: CRISIL Keeps C Debt Rating in Not Cooperating Category
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ram Impex
Corporation (RIC) continue to be 'CRISIL C/CRISIL A4 Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL C (ISSUER NOT
COOPERATING)
Letter of Credit 12 CRISIL A4 (ISSUER NOT
COOPERATING)
Letter of Credit 3 CRISIL A4 (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with RIC for
obtaining information through letter and email dated December 9,
2024 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RIC, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RIC
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RIC continues to be 'CRISIL C/CRISIL A4 Issuer not cooperating'.
RIC, set up in 2011, trades in steel, medium density fibre boards
and glass. Mr. Kakarlapudi Raju and Mr. Srinivas Reddy Marella are
the promoters. The firm is based in Hyderabad.
TEXWIN SPINNING: Ind-Ra Moves B+ Rating to NonCooperating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Texwin Spinning Pvt Ltd to the non-cooperating category as per Ind
Ra's policy on Issuer Non-Cooperation, following non-submission of
No Default Statement continuously for 3 months despite continuous
requests and follow-ups by the agency and also IND-Ra's inability
to validate timely debt servicing through other sources it
considers reliable. No Default Statement in the format prescribed
by SEBI is required to be shared by the issuer every month as a
confirmation that all financial obligations are being serviced on
time. Investors and other users are advised to take appropriate
caution while using these ratings. The rating will now appear as
'IND B+/Negative (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating actions are:
-- INR140 mil. Fund Based Working Capital Limit Outlook revised
to Negative; rating migrated to non-cooperating category with
IND B+/Negative (ISSUER NOT COOPERATING)/IND A4 (ISSUER NOT
COOPERATING) rating;
-- INR140 mil. Non-Fund Based Working Capital Limit Outlook
revised to Negative; rating migrated to non-cooperating
category with IND B+/Negative (ISSUER NOT COOPERATING)/IND A4
(ISSUER NOT COOPERATING) rating;
-- INR765.2 mil. Term Loan Outlook revised to Negative; rating
migrated to non-cooperating category with IND B+/Negative
(ISSUER NOT COOPERATING) rating; and
-- INR400 mil. Term Loan Outlook revised to Negative; rating
migrated to non-cooperating category with IND B+/Negative
(ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not co-operate, based on
best available information. Ind-Ra is unable to provide an update,
as the agency does not have adequate information to review the
ratings.
Non-Cooperation by the Issuer
Ind-Ra has not received No Default Statement continuously for 3
months despite continuous requests and follow-ups by the agency.
Ind-Ra had consistently followed up with Texwin Spinning Pvt Ltd
over emails starting from October 30, 2024, apart from phone
calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Texwin Spinning Pvt Ltd
on the basis of best available information and is unable to provide
a forward-looking credit view. Hence, the current outstanding
rating might not reflect Texwin Spinning Pvt Ltd.'s credit
strength. If an issuer does not provide timely No Default
Statement, it indicates weak governance, particularly in 'Timely
debt servicing'. The agency may also consider this as symptomatic
of a possible disruption / distress in the issuer's credit profile.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings.
About the Company
Incorporated on March 9, 2021, TSPL manufactures 100% cotton yarn
at its unit in Rajkot, Gujarat. The company has an installed
capacity of 45,15,000kg and began its commercial operations on May
26, 2022.
UNITED WINES: Ind-Ra Assigns BB Loan Rating, Outlook Stable
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated United Wines' (UW)
bank facilities as follows:
-- INR200 mil. Fund-based working capital limit assigned with IND
BB+/Stable/IND A4+ rating; and
-- INR100 mil. Proposed fund-based/non-fund-based working capital
limit assigned with IND BB+/Stable/IND A4+ rating.
Detailed Rationale of the Rating Action
The ratings reflect UW's medium scale of operations, and modest
EBITDA margins and credit metrics in FY24. However, Ind-Ra expects
the scale of operations and credit metrics to improve in the near
term on account of a likely improvement in the profitability. The
ratings are further constrained by the highly regulated liquor
industry. However, the ratings are supported by the promoters over
two decades of experience in the liquor industry.
Detailed Description of Key Rating Drivers
Medium Scale of Operations: UW's revenue surged to INR2,190.45
million in FY24 (FY23: INR1,897.87 million), led by an increase in
sales volumes. During 1HFY25, UW achieved a turnover of INR864
million. Ind-Ra expects UW's revenue to increase further to
INR2,250 million in FY25 on the back of increasing geographical and
customer reach.
Modest Operating Margins: The EBITDA margins improved to 1.81% in
FY24 (FY23: 1.46%) on account of a decrease in direct cost related
to clearing and forwarding, and duties related to customs. The
return on capital employed stood at 14.3% in FY24 (FY23: 23.8%).
The margins remain at the similar levels as the liquor industry is
marked by volumetric sales and on account of no significant value
addition in the finished product. Ind-Ra expects the margins to
improve slightly in the near-to-medium term as the scale of
operations continues to grow with better recovery of fixed cost.
Modest Credit Metrics: The interest coverage (operating
EBITDA/gross interest expense) and net leverage (adjusted net
debt/operating EBITDAR) stood at 3.18x and 9.39x, respectively, in
FY24. (FY23: NM). UW started availing working capital facilities
from August 2023 to support its business growth. Ind-Ra expects the
interest coverage to marginally deteriorate in FY25 on account of a
likely rise in interest cost with the enhancement of the working
capital limit to INR200 million in August 2024 from INR120 million,
coupled with an increase in utilization levels during FY25.
However, the agency expects the net leverage to improve in FY25 on
account of a likely improvement in the EBITDA. Ind-Ra expects the
credit metrics to improve FY26 onwards with the improvement in
EBITDA.
Susceptibility to Regulatory Changes: The liquor industry is
administered by a strict license regime for production and
distribution. Any adverse change in the government's license
authorization policy such as discontinuation or limiting of renewal
of licenses or substantially increasing license fees, could impact
UW's scale of operations.
Experienced Promoters: UW is part of Norther Spirit Group engaged
in the liquor distribution business. The company's promoters have
more than two decades of experience in the liquor industry, leading
to an established presence in West Bengal. UW started operations in
2002 and merged with Northern Spirit Limited (NSL; 'IND
BBB'/Positive) in 2017. However, it demerged from NSL in 2023. UV's
operations are managed by Anuj Bakshi, who is also a director at
NSL.
Established Relationships with Key Suppliers: UW has strong and
longstanding relationship with its suppliers. It is an authorized
distributor of Pernod Ricard, Carlsberg, Bacardi brands and other
brands of key players in the domestic market. UW has exclusive
distributorship rights of brands such as Pernod Ricard, Bacardi,
Carlsberg, William Grants and Campari India in West Bengal.
Liquidity
Stretched: UW's average maximum utilization of the fund-based
limits was 85 % during the 12 months ended November2024. The cash
flow from operations turned negative to INR227.27 million in FY24
(FY23: INR17.90 million) due to unfavorable changes in working
capital. Consequently, the free cash flow turned negative to INR
227.27 million in FY24 (FY23: INR17.90 million). The working
capital cycle elongated to 83 days in FY24 (FY23: 53 days)
primarily due to an increase in the receivable period to 28 days
(11 days) and inventory holding period to 78 days (75 days). The
increase in receivable days in FY24 was on account of extending of
higher credit period to increase sales. The company does not have
any term debt. The cash and cash equivalents stood low at INR0.23
million at FYE24 (FYE23: INR8.28 million).
Rating Sensitivities
Negative: A decline in the scale of operations, and deterioration
in the overall credit metrics and liquidity position, would lead to
a negative rating action.
Positive: An increase in the scale of operations while maintaining
the credit metrics and liquidity position, all on a sustained
basis, would lead to a positive rating action.
About the Company
UW was formed in 2002 as a proprietorship firm and is managed by
Anuj Bakshi. The company is engaged in importing and distribution
of foreign liquor in West Bengal and has distribution rights of
Pernod Ricard, Bacardi, William Grants, Brown Forman and Campari.
Its key customers include NSL, Vaibhav Laxmi Capital Market Pvt
Ltd. and Westwell Gases Pvt Ltd, among others.
USHAHKAL ABHINAV: Ind-Ra Moves BB+ Rating to NonCooperating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Ushahkal Abhinav Speciality Hospital LLP to the non-cooperating
category as per Ind Ra's policy on Issuer Non-Cooperation,
following non-submission of No Default Statement continuously for 3
months despite continuous requests and follow-ups by the agency and
also IND-Ra's inability to validate timely debt servicing through
other sources it considers reliable. No Default Statement in the
format prescribed by SEBI is required to be shared by the issuer
every month as a confirmation that all financial obligations are
being serviced on time. Investors and other users are advised to
take appropriate caution while using these ratings. The rating will
now appear as 'IND BB+/Negative (ISSUER NOT COOPERATING)' on the
agency's website.
The instrument-wise rating action is:
-- INR1.10 bil. Term Loan due on June 30, 2031 Outlook revised to
Negative; rating migrated to non-cooperating category with
IND BB+/Negative (ISSUER NOT COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not co-operate, based on
best available information. Ind-Ra is unable to provide an update,
as the agency does not have adequate information to review the
ratings.
Non-Cooperation by the Issuer
Ind-Ra has not received No Default Statement continuously for 3
months despite continuous requests and follow-ups by the agency.
Ind-Ra had consistently followed up with Ushahkal Abhinav
Speciality Hospital LLP over emails starting from October 30, 2024,
apart from phone calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Ushahkal Abhinav
Speciality Hospital LLP on the basis of best available information
and is unable to provide a forward-looking credit view. Hence, the
current outstanding rating might not reflect Ushahkal Abhinav
Speciality Hospital LLP's credit strength. If an issuer does not
provide timely No Default Statement, it indicates weak governance,
particularly in 'Timely debt servicing'. The agency may also
consider this as symptomatic of a possible disruption/distress in
the issuer's credit profile. Therefore, investors and other users
are advised to take appropriate caution while using these ratings.
About the Company
UASHL, incorporated in November 2016, has set up a multi-super
specialty hospital with over 356 beds in Sangli, Maharashtra,
spread across a land area four acres (earlier eight acres) and
built-up area of 0.425 million square feet. The hospital offers
healthcare services in around 28 areas, including urology,
nephrology, pathology, surgery, cardiology etc.
VANSHIKA CONSTRUCTIONS: Ind-Ra Moves B+ Rating to NonCooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated all the ratings of
Vanshika Constructions to the non-cooperating category as per Ind
Ra's policy on Issuer Non-Cooperation, following non-submission of
No Default Statement continuously for 3 months despite continuous
requests and follow-ups by the agency and also IND-Ra's inability
to validate timely debt servicing through other sources it
considers reliable. No Default Statement in the format prescribed
by SEBI is required to be shared by the issuer every month as a
confirmation that all financial obligations are being serviced on
time. Investors and other users are advised to take appropriate
caution while using these ratings. The rating will now appear as
'IND B+/Negative (ISSUER NOT COOPERATING)' on the agency's website.
The instrument-wise rating action is:
-- Issuer Rating; Outlook revised to Negative; rating migrated to
non-cooperating category with IND B+/Negative (ISSUER NOT
COOPERATING) rating.
Note: ISSUER NOT COOPERATING: Issuer did not co-operate, based on
best available information. Ind-Ra is unable to provide an update,
as the agency does not have adequate information to review the
ratings.
Non-Cooperation by the Issuer
Ind-Ra has not received No Default Statement continuously for 3
months despite continuous requests and follow-ups by the agency.
Ind-Ra had consistently followed up with Vanshika Constructions
over emails starting from October 30, 2024, apart from phone
calls.
Limitations regarding Information Availability
Ind-Ra has reviewed the credit ratings of Vanshika Constructions on
the basis of best available information and is unable to provide a
forward-looking credit view. Hence, the current outstanding rating
might not reflect Vanshika Constructions' credit strength. If an
issuer does not provide timely No Default Statement, it indicates
weak governance, particularly in 'Timely debt servicing'. The
agency may also consider this as symptomatic of a possible
disruption / distress in the issuer's credit profile. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings.
About the Company
VC is a partnership firm engaged in construction of roads, liquor
trading, operating of toll plazas, and mining and extraction
business. Its head office is in Narsinghpur, Madhya Pradesh. The
firm operates around 21 liquor shops in Madhya Pradesh as of FY24.
=========
J A P A N
=========
FURUKAWA ELECTRIC: Egan-Jones Retains BB+ Senior Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company on December 5, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by Furukawa Electric Co., Ltd. EJR also withdrew
its rating on commercial paper issued by the Company.
Headquartered in Chiyoda City, Tokyo, Japan, Furukawa Electric Co.,
Ltd. manufactures and distributes electrical electronics.
J. FRONT: Egan-Jones Hikes Senior Unsecured Ratings to BB
---------------------------------------------------------
Egan-Jones Ratings Company on December 6, 2024, upgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by J. Front Retailing Co., Ltd. to BB from BB-. EJR
also withdrew its rating on commercial paper issued by the
Company.
Headquartered in Tokyo, Japan, J. Front Retailing Co., Ltd. is a
holding company established through the merger of Daimaru and
Matsuzakaya.
JAPAN AIRLINES: Egan-Jones Retains B+ Senior Unsecured Ratings
--------------------------------------------------------------
Egan-Jones Ratings Company on December 31, 2024, maintained its
'B+' foreign currency and local currency senior unsecured ratings
on debt issued by Japan Airlines Co. Ltd. EJR also withdrew its
rating on commercial paper issued by the Company.
Headquartered in Shinagawa City, Tokyo, Japan, Japan Airlines Co.
Ltd. provides air transportation services.
KEISEI ELECTRIC: Egan-Jones Retains BB Senior Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company on December 10, 2024, maintained its
'BB' foreign currency and local currency senior unsecured ratings
on debt issued by Keisei Electric Railway Co., Ltd. EJR also
withdrew its rating on commercial paper issued by the Company.
Headquartered in Ichikawa, Chiba, Japan, Keisei Electric Railway
Co., Ltd. provides passenger rail and bus transportation services
in the Metropolitan Tokyo and Chiba prefecture areas.
TOBU RAILWAY: Egan-Jones Retains BB Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company on December 31, 2024, maintained its
'BB' foreign currency and local currency senior unsecured ratings
on debt issued by Tobu Railway Co., Ltd. EJR also withdrew its
rating on commercial paper issued by the Company.
Headquartered in Tokyo, Japan, Tobu Railway Co., Ltd. mainly
provides passenger rail and bus transportation services in the
Kanto area.
TOKYO ELECTRIC: Egan-Jones Retains BB+ Senior Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company on December 2, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by Tokyo Electric Power Company Holdings,
Incorporated. EJR also withdrew its rating on commercial paper
issued by the Company.
Headquartered in Chiyoda City, Tokyo, Japan, Tokyo Electric Power
Company Holdings, Incorporated generates, transmits, and
distributes electricity.
TOKYU CORP: Egan-Jones Retains BB Senior Unsecured Ratings
----------------------------------------------------------
Egan-Jones Ratings Company on December 9, 2024, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Tokyu Corporation. EJR also withdrew its rating on
commercial paper issued by the Company.
Headquartered in Shibuya, Tokyo, Japan, Tokyu Corporation provides
railway services.
TOYOBO STC: Egan-Jones Retains BB+ Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company on December 12, 2024, maintained its
'BB+' foreign currency and local currency senior unsecured ratings
on debt issued by Toyobo STC Co. Ltd. EJR also withdrew its rating
on commercial paper issued by the Company.
Headquartered in Osaka, Osaka, Japan, Toyobo STC Co. Ltd. operates
import and export businesses.
===============
M A L A Y S I A
===============
HO HUP: Gets Winding-Up Petition Over MYR2.5MM Unpaid Debt
----------------------------------------------------------
The Edge Malaysia reports that Ho Hup Construction Company Bhd,
which has just resolved a winding-up petition in November filed by
a diesel fuel supplier, has been served with yet another winding-up
petition from a cement supplier due to an alleged unpaid sum of
MYR2.5 million.
According to The Edge, the latest winding-up petition was filed by
Negeri Sembilan Cement Industries Sdn Bhd (NSCI) against Ho Hup and
its 90%-owned subsidiary, Tru-Mix Concrete Sdn Bhd. The alleged
unpaid sum comprises an outstanding payment of MYR2.14 million and
a late interest payment of MYR358,004, calculated at a rate of 1.5%
per month on the principal sum.
In a bourse filing on Jan. 10, Ho Hup said the claims against the
group were made pursuant to a corporate guarantee it extended on
behalf of Tru-Mix, which it said is not a major subsidiary based on
listing rules, and that it is seeking legal advice on the matter,
The Edge relates. "Based on our audited financial statements for
FY2023, Tru-Mix's total assets employed are MYR9.35 million, which
accounts for only 0.77% of Ho Hup's total assets of MYR1.22
billion," it said.
At present, Ho Hup does not expect any financial or operational
loss from the petition, aside from legal costs and expenses related
to this matter, The Edge says.
On Nov. 25 last year, Ho Hup announced that the winding-up petition
filed by Joterix Sdn Bhd over an alleged unpaid sum of
MYR184,438.80 had been struck out after the matter was settled
amicably between the parties, recalls The Edge.
Shares of the Main Market-listed company settled unchanged at 14.5
sen on Jan. 10, giving the company a market capitalisation of
MYR77.83 million, The Edge discloses.
About Ho Hup
Ho Hup Construction Company Berhad --
https://www.hohupgroup.com.my/ -- engages in foundation
engineering, civil engineering, building contracting works and hire
of plant and machinery. The Company operates in four segments:
construction, which is engaged in foundation and civil
engineering, building contracting works and engineering,
procurement, construction and commissioning of pipeline system;
property development, which includes the development of
residential and commercial properties, manufacturing, which
includes manufacturing and distribution of ready-mixed concrete,
and other business segment, which represents hire of plant and
machinery. The Company's subsidiaries include H2Energy Corporation
Sdn Bhd, Tru-Mix Concrete Sdn Bhd, Bukit Jalil Development Sdn Bhd
and Ho Hup Equipment Rental Sdn Bhd.
===============
M O N G O L I A
===============
GOLOMT BANK: Moody's Rates New USD Senior Unsecured Notes 'B2'
--------------------------------------------------------------
Moody's Ratings has assigned a B2 foreign currency senior unsecured
debt rating to the proposed USD notes to be issued by Golomt Bank
JSC (B2 stable, b3).
The rating's outlook is stable.
The assigned rating is based on draft documents reviewed by us,
which Moody's do not expect to be materially different from those
in the final documentation.
RATINGS RATIONALE
The B2 foreign currency senior unsecured debt rating is in line
with Golomt Bank's B2 long-term issuer rating. The bonds will rank
pari passu with all other present and future unsecured and
unsubordinated obligations of the company. The bonds will be
redeemable at par on maturity.
Golomt Bank's B2 issuer rating incorporates a one-notch uplift from
the bank's b3 Baseline Credit Assessment (BCA), based on Moody's
assessment of a high level of support from the Government of
Mongolia (B2 stable) if necessary. Moody's assess that the level of
government support for Golomt Bank to be high because of its
importance to the domestic economy considering its status as
domestic systemically important bank (D-SIB); the government's
track record of supporting systemically important banks; and legal
framework of support stipulated in Mongolia's Banking Law.
Golomt Bank's b3 BCA reflects the bank's moderate profitability and
good funding and liquidity, supported by its strong deposit
franchise, which help offset its modest capital and high asset risk
stemming from its borrower concentration and rapid loan growth.
Moody's have not incorporated affiliate support for Golomt Bank,
and therefore, the bank's Adjusted BCA is in line with its BCA of
b3.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Golomt Bank's ratings are at the same level as the sovereign
rating, and a positive rating action is unlikely in the absence of
an upgrade of the sovereign rating.
Moody's could upgrade Golomt Bank's BCA if the bank's asset quality
improves with a meaningful reduction in its loan borrower
concentration; and its return on assets remains above 0.8%, all on
a sustained basis, without a weakening in its capitalization, and
funding and liquidity profiles.
Moody's could downgrade Golomt Bank's ratings if the sovereign
rating is downgraded or if the bank's BCA is lowered.
The bank's BCA could be lowered if the bank's TCE/RWA falls below
10%; its funding and liquidity deteriorate significantly; and its
asset quality deteriorates such that its annual new NPL formation
ratio rises significantly.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Banks published
in November 2024.
Golomt Bank JSC is headquartered in Ulaanbaatar, Mongolia. The bank
reported total assets of MNT12.5 trillion (USD3.7 billion) as of
the end of September 2024.
=====================
N E W Z E A L A N D
=====================
CAMERON ROAD: Creditors' Proofs of Debt Due on Feb. 7
-----------------------------------------------------
Creditors of Cameron Road Properties Limited are required to file
their proofs of debt by Feb. 7, 2025, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Jan. 6, 2025.
The company's liquidators are:
Geoff Falloon
Biz Rescue Limited
PO Box 27
Nelson 7040
HUNTER BLOCKLAYING: Court to Hear Wind-Up Petition on Feb. 21
-------------------------------------------------------------
A petition to wind up the operations of Hunter Blocklaying Limited
will be heard before the High Court at Auckland on Feb. 21, 2025,
at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Nov. 11, 2024.
The Petitioner's solicitor is:
Hosanna Tanielu
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
MAGIC MEALS: Grant Bruce Reynolds Appointed as Liquidator
---------------------------------------------------------
Grant Bruce Reynolds of Reynolds & Associates on Dec. 19, 2024, was
appointed as liquidator of Magic Meals Limited.
The liquidators may be reached at:
Reynolds & Associates Limited
PO Box 259059
Botany
Auckland 2163
OLIVOSA LIMITED: Creditors' Proofs of Debt Due on Feb. 7
--------------------------------------------------------
Creditors of Olivosa Limited are required to file their proofs of
debt by Feb. 7, 2025, to be included in the company's dividend
distribution.
The High Court at Wellington appointed Robin Crimp of RAC
Insolvency as liquidator on Dec. 17, 2024.
WAVE CLEANING: Court to Hear Wind-Up Petition on Feb. 5
-------------------------------------------------------
A petition to wind up the operations of Wave Cleaning Services
Limited will be heard before the High Court at Auckland on Feb. 5,
2025, at 10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Nov. 1, 2024.
The Petitioner's solicitor is:
Hosanna Tanielu
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
=================
S I N G A P O R E
=================
13 HONEY: Court Enters Wind-Up Order
------------------------------------
The High Court of Singapore entered an order on Dec. 27, 2024, to
wind up the operations of 13 Honey (S) Pte. Ltd.
Maybank Singapore Limited filed the petition against the company.
The company's liquidator is:
Mr. Gary Loh Weng Fatt
c/o BDO Advisory Pte. Ltd.
600 North Bridge Road
#23-01 Parkview Square
Singapore 188778
ASIA DESSERT: Court to Hear Wind-Up Petition on Jan. 24
-------------------------------------------------------
A petition to wind up the operations of Asia Dessert Marketing Pte.
Ltd. will be heard before the High Court of Singapore on Jan. 24,
2025, at 10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
Dec. 30, 2024.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00, AIA Tower
Singapore 048542
GERLYN C PTE: Court to Hear Wind-Up Petition on Jan. 24
-------------------------------------------------------
A petition to wind up the operations of Gerlyn C Pte. Ltd. will be
heard before the High Court of Singapore on Jan. 24, 2025, at 10:00
a.m.
DBS Bank Ltd filed the petition against the company on Dec. 30,
2024.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00, AIA Tower
Singapore 048542
MANAKIN INVESTMENTS: Creditors' Proofs of Debt Due on Feb. 7
------------------------------------------------------------
Creditors of Manakin Investments Pte. Ltd. are required to file
their proofs of debt by Feb. 7, 2025, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Dec. 31, 2024.
The company's liquidators are:
Chan Li Shan
c/o Agile 8 Solutions
133 Cecil Street
#14-01 Keck Seng Tower
Singapore 069535
VIEM POWERED: Court to Hear Wind-Up Petition on Jan. 24
-------------------------------------------------------
A petition to wind up the operations of Viem Powered Pte. Ltd. will
be heard before the High Court of Singapore on Jan. 24, 2025, at
10:00 a.m.
DBS Bank Ltd filed the petition against the company on Dec. 30,
2024.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00, AIA Tower
Singapore 048542
=================
S R I L A N K A
=================
BANK OF CEYLON: Fitch Hikes Foreign & Local-Currency IDRs to 'CCC+'
-------------------------------------------------------------------
Fitch Ratings has upgraded Bank of Ceylon's (BOC) Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'CCC+'
from 'CCC-'. The ratings do not have an Outlook because of the high
volatility at this rating level, in line with Fitch's rating
definitions.
Fitch has also upgraded BOC's Viability Rating (VR) to 'ccc+' from
'ccc-', affirmed its Short-Term IDR at 'C' and its Government
Support Rating (GSR) at 'ns'.
BOC's National Long-Term Rating of 'A(lka)'/Stable was not
considered in this review.
The rating actions follow the upgrade of Sri Lanka's Long-Term
Foreign-Currency IDR to 'CCC+', from 'RD', and Local-Currency IDR
to 'CCC+', from 'CCC-', on 20 December 2024. For details, please
see Fitch Upgrades Sri Lanka to 'CCC+'.
Key Rating Drivers
Improved Sovereign Credit Profile: The upgrade of BOC's IDRs is
driven by the upgrade of its VR, which stems from the improvement
in Sri Lanka's credit profile following the completion of a debt
restructuring. Fitch believes this has reduced sovereign-related
stress on Sri Lankan banks' operating environment (OE) as well as
on BOC's financial and non-financial factors, supporting the
improvement in BOC's overall credit profile.
BOC's ratings are closely linked to the sovereign's credit profile
given its large exposure to the domestic economy, government
securities and lending to the broader public sector.
Sovereign Drives OE Improvement: The upward revision in the Sri
Lankan banks' OE score to 'ccc+', from 'ccc-', primarily stems from
the sovereign's enhanced credit profile after the successful debt
restructuring. Economic reforms implemented since the start of the
crisis in 2022 have stabilised the economy, reducing
macro-financial stability risks to the banking sector. Fitch
expects the improvement to be sustained, supported by its estimated
economic growth of 4.1% in 2024 and an average of 3.6% over
2025-2026.
Enhanced Business Profile: Fitch has revised BOC's business profile
score to 'b-' from 'ccc-' following the revision in the OE score
and the bank's continued strong market position as the largest bank
in Sri Lanka, accounting for 22% of sector assets. Fitch expects
BOC's ability to generate and defend business volume and earnings
to be bolstered by the OE improvement as well as the bank's strong
local franchise.
Sovereign Risks Weigh on Risk Profile: The easing of the
sovereign's default risk and the improved OE underpin the revision
in BOC's risk profile score to 'ccc+' from 'ccc-'. BOC's risk
profile continues to reflect its large exposure to the sovereign,
which Fitch estimates at nearly 60% of assets, comprising loan and
non-loan exposures. Fitch expects BOC's sovereign exposure to
moderate in the medium term as private-sector lending opportunities
expand, but the exposure will remain a key driver of its risk
profile.
Better Asset-Quality Prospects: The revision in BOC's asset-quality
score to 'ccc+' from 'ccc-' reflects its view that asset quality is
broadly aligned with the sovereign's creditworthiness due to the
bank's large exposure. Loan book contraction has exacerbated BOC's
impaired (stage 3) loan ratio, which deteriorated to 13.6% by
end-3Q24 (end-2023: 12.6%) but Fitch expects a meaningful
improvement as borrower repayment capacity is enhanced further.
Reduced Risks to Profitability: Reduced risks to BOC's structural
profitability following the successful completion of the
sovereign's external debt restructuring support Fitch's revision of
the bank's earnings and profitability score to 'b-' from 'ccc-'.
Fitch expects profitability to be highly correlated with economic
and interest rate cycles since sovereign-related issues are largely
resolved. Fitch believes the conclusion of the government's efforts
to restructure a state-owned entity's debt will provide a boost to
BOC's operating profit/risk-weighted asset ratio from the 3.7% at
end-9M24.
Solvency Risks Abate: Fitch believes the reduced risk of a
sovereign default and the stabilising economy alleviate solvency
risks for BOC. This underpins the upward revision in the bank's
capitalisation and leverage score to 'ccc+' from 'ccc-'. The score
reflects the vulnerability of BOC's capital to sovereign risks via
sovereign bonds and rupee-denominated government securities in
addition to capital-impairment risks on its loan book, including to
state and state-owned entities.
Improved External Funding Access: Fitch has revised BOC's funding
and liquidity score to 'ccc+' from 'ccc-' to reflect the
anticipated improvement in the bank's funding and liquidity
profile, particularly on foreign currency, due to the sovereign's
reduced default risks. Fitch expects the restoration of the
sovereign's creditworthiness to provide BOC with access to
foreign-currency wholesale funding, which was once a key source of
funding for the bank.
State Support Still Unlikely: The GSR of 'No Support' reflects its
assessment that there is no reasonable assumption of government
support for the bank. Fitch believes the sovereign's ability to
provide extraordinary support, particularly in foreign currency,
remains constrained, despite the higher sovereign rating, given the
challenges to the state's financial flexibility and the size of the
banking sector relative to the economy. This is despite the
sovereign's strong propensity to extend support to the bank due to
its high systemic importance and full state ownership.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
A downgrade of BOC's Long-Term Foreign- and/or Local-Currency IDRs
and VR is most likely to stem from a deterioration in Sri Lanka's
sovereign rating, which would constrain BOC's standalone credit
profile, including the OE. Increased likelihood that the bank would
default on, or seek a restructuring of, its senior foreign- and/or
local-currency obligations to non-government creditors could also
lead to a downgrade of BOC's Long-Term Foreign- and/or
Local-Currency IDRs.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade of BOC's Long-Term Foreign- and Local-Currency IDRs and
VR would most likely result from an improvement in the sovereign's
credit profile and the OE assessment. A sustained improvement in
the sovereign's financial flexibility may lead to a reconsideration
of state support, leading to an upgrade of the bank's GSR.
VR ADJUSTMENTS
The operating environment score of 'ccc+' is below the 'b' category
implied score due to the following adjustment reason: sovereign
rating (negative).
BOC has a 1.78% equity stake in Fitch Ratings Lanka Ltd. No
shareholder other than Fitch, Inc. is involved in the day- to-day
rating operations of, or credit reviews undertaken by, Fitch
Ratings Lanka.
ESG Considerations
BOC has an ESG Relevance Score of '4' for Governance Structure due
to ownership concentration, with a 100% state shareholding and
several related-party transactions with the state and state-owned
entities, which has a negative impact on the credit profile, and is
relevant to the ratings in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Bank of Ceylon LT IDR CCC+ Upgrade CCC-
ST IDR C Affirmed C
LC LT IDR CCC+ Upgrade CCC-
Viability ccc+ Upgrade ccc-
Government Support ns Affirmed ns
*********
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 2025. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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