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250519.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, May 19, 2025, Vol. 28, No. 99 Headlines A U S T R A L I A DK HEAVY: Second Creditors' Meeting Set for May 22 DRAGON CENTURY: First Creditors' Meeting Set for May 22 J & C G: First Creditors' Meeting Set for May 22 LSA VENUES: Lifeguards in Qld and NSW Owed AUD400,000 MAZ GROUP: First Creditors' Meeting Set for May 21 ONE RAIL AUSTRALIA: S&P Ups ICR to 'BB' on Group Capital Injection REDZED TRUST 2025-2: Fitch Assigns B+(EXP)sf Rating to Cl. F Notes TOPKNOTZ PTY: First Creditors' Meeting Set for May 22 C H I N A AESTHETIC MEDICAL: Onestop Assurance Raises Going Concern Doubt FANGDD NETWORK: Audit Alliance Raises Going Concern Doubt SENMIAO TECHNOLOGY: All Five Proposals OK'd at Annual Meeting XINYUAN REAL: Defers Notes Interest; 45% Bondholder Support Secured H O N G K O N G PARKVIEW GROUP: Gets HK$300 Million Private Loan from PAG I N D I A A K ENTERPRISES: CRISIL Reaffirms B- Rating on INR9cr New Loan ARA TILES: CRISIL Moves B+ Debt Ratings to Not Cooperating ARORA INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating DEGNA BIOENERGY: CRISIL Moves B+ Debt Rating to Not Cooperating GENSOL ENGINEERING: IREDA Files Insolvency Plea Against Company GLOBAL POLYBAGS: CRISIL Moves B+ Debt Ratings to Not Cooperating GMR HYDERABAD: Moody's Hikes CFR to Ba1, Alters Outlook to Stable GOOD MORNING: CRISIL Moves B Debt Ratings to Not Cooperating GVK ENERGY: Admitted to NCLT Against IDBI's Plea HARI OM: CRISIL Withdraws B Rating on INR20cr Cash Debt JVS BIOFUELS: CRISIL Moves B+ Debt Rating to Not Cooperating KOHINOOR CARPETS: CRISIL Reaffirms B+ Rating on INR1.15cr Loan LANCO VIDARBHA: CARE Keeps D Debt Rating in Not Cooperating MANDOVI CASTING: CRISIL Withdraws B+ Rating on INR7cr Cash Loan MARUTI TRADING: CRISIL Moves C Debt Ratings to Not Cooperating NAGARJUNA STEEL: CARE Keeps B- Debt Rating in Not Cooperating SAI POULTRY: CARE Keeps B- Debt Rating in Not Cooperating Category SHAH AGENCIES: CRISIL Moves B+ Debt Ratings to Not Cooperating SHRIRAM FINANCE: Fitch Hikes Long-Term IDR to 'BB+', Outlook Stable SINGH TECHNOINFRA: CARE Keeps B- Debt Rating in Not Cooperating SONU MARKETING: CRISIL Moves B Debt Rating to Not Cooperating SS INNOVATIONS: Names Arvind Palaniappan Interim CFO UNITON INFRA: CARE Keeps B- Debt Rating in Not Cooperating VODAFONE IDEA: Warns of Insolvency Risk Beyond FY26 Without Aid J A P A N NISSAN MOTOR: Plans to Shut Plants in Japan, Mexico, Yomiuri Says TEPCO HOLDINGS: S&P Affirms 'BB+' LT ICR, Alters Outlook to Neg. L A O S XAYABURI POWER: Fitch Rates Thai Baht Debentures 'B+(EXP)' M A L A Y S I A SAPURA ENERGY: Announces Regularisation Plan to Exit PN17 Status SARAWAK CABLE: Shareholder Opposes Lawsuit vs. Unit's Liquidators N E W Z E A L A N D BBK HORTICULTURE: Creditors' Proofs of Debt Due on June 15 EXPRESS ENGINEERING: Creditors' Proofs of Debt Due on June 10 OPEN SEASON: Creditors' Proofs of Debt Due on June 11 SHIRES LIMITED: Court to Hear Wind-Up Petition on May 30 SUSTAINABLE GREEN: Court to Hear Wind-Up Petition on May 22 S I N G A P O R E BROADWAY SYSTEMS: Creditors' Proofs of Debt Due on May 30 EON REALITY: Court to Hear Wind-Up Petition on May 23 SEAGATE DATA: Fitch Gives 'BB+' Rating to Senior Unsecured Notes SUPRATECHNIC PTE: Court to Hear Wind-Up Petition on May 23 TAG SENSORS: Creditors' Proofs of Debt Due on June 6 USPI INVESTMENT: Court to Hear Wind-Up Petition on May 23 S R I L A N K A SRI LANKA: Restructures Nearly US$931MM in Credit Lines with India - - - - - ================= A U S T R A L I A ================= DK HEAVY: Second Creditors' Meeting Set for May 22 -------------------------------------------------- A second meeting of creditors in the proceedings of DK Heavy Plant Services Pty Ltd and Precision Auto and Fleet Pty Ltd has been set for May 22, 2025 at 12:00 p.m. virtually via Microsoft Teams. 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 May 21, 2025 at 5:00 p.m. Sule Arnautovic of Salea Advisory was appointed as administrator of the company on April 7, 2025. DRAGON CENTURY: First Creditors' Meeting Set for May 22 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Dragon Century Spring Pty ltd will be held on May 22, 2025 at 11:00 a.m. virtually via Microsoft Teams. Brett Orzel of OWS Advisory was appointed as administrator of the company on May 12, 2025. J & C G: First Creditors' Meeting Set for May 22 ------------------------------------------------ A first meeting of the creditors in the proceedings of J & C G Constructions Pty Ltd will be held on May 22, 2025 at 11:00 a.m. via virtual meeting. Sean Wengel and Rashnyl Prasad of William Buck were appointed as administrators of the company on May 12, 2025. LSA VENUES: Lifeguards in Qld and NSW Owed AUD400,000 ----------------------------------------------------- ABC News reports that a lifeguarding service provider that has gone into liquidation will be asked to pay more than AUD400,000 in unpaid superannuation to former employees. The ABC, citing documents from the Australian Securities and Investments Commission (ASIC) and liquidators, relates that the Australian Taxation Office (ATO) will also claim an additional AUD1.4 million from the company. The business, LSA Venues Central West Pty Ltd, is a sister company of Lifeguarding Services Australia Pty Ltd, and was used to pay more than 520 workers employed at pools in Queensland and New South Wales, the ABC discloses. According to the ABC, liquidators Jirsch Sutherland said it appeared a "significant number" of employees were owed superannuation. In a statement, they said the ATO had found workers were owed just over AUD404,000 of unpaid superannuation from July 2021 to December 2024. Lifeguarding Services Australia still operates pools in locations including Mackay, Emerald and Forbes, and previously held contracts at Airlie Beach and Kempsey. Lifeguarding Services Australia owner Stan Wall said a key priority of the liquidation was ensuring all staff entitlements were paid, the ABC relays. "We are working closely with an independent body to solve [the issue]," the ABC quotes Mr. Wall as saying. The ABC relates that Mr. Wall said the unpaid entitlements "are a result of varying reasons, including a staff member failing to provide us with a correct tax file number." He recommended that any staff member with entitlement claims contact the Fair Work Commission. The ABC adds that Mr. Wall said current management contracts, including the Bluewater Lagoon, Emerald Aquatic Centre and Forbes Olympic Pool, would not be impacted by the liquidation. MAZ GROUP: First Creditors' Meeting Set for May 21 -------------------------------------------------- A first meeting of the creditors in the proceedings of Maz Group Pty Ltd will be held on May 21, 2025 at 11:00 a.m. via teleconference facilities. Edwin Narayan and Andrew Quinn of Mackay Goodwin were appointed as administrators of the company on May 12, 2025. ONE RAIL AUSTRALIA: S&P Ups ICR to 'BB' on Group Capital Injection ------------------------------------------------------------------ S&P Global Ratings raised to 'BB' from 'BB-' its long-term issuer credit rating on One Rail Australia Holdings Ltd. (OneRail). Additionally, S&P raised to 'BBB-' from 'BB+' its issue credit rating on the company's rated senior secured debt. S&P has also assigned its 'BB' long-term issuer and issue credit ratings to intermediate holding company Magnetic Rail Group Pty Ltd. (MRG). Stable rating outlooks on both OneRail and MRG reflect steady cash flow from OneRail's contract with Glencore Coal Pty. Ltd. (Glencore) and incremental earnings from new contracts. The upgrade of OneRail and assignment of ratings to MRG coincide with improvement in the group's credit quality following strengthening of its capital structure. The A$180 million equity infusion and the refinancing of MRG's remaining mezzanine debt support the group's overall capital structure. Following the refinancing, MRG's debt will decline to A$175 million from about A$343 million. OneRail's underlying business continues to perform to S&P's expectations. S&P said, "Lower debt will raise consolidated group FFO to debt to 16%-18.5% over fiscals 2025 to 2027, stronger than we previously expected. This is above our previous upgrade threshold of 13% for the group. Under the refinanced MRG debt facility, interest costs will decline and the group can pay dividends if its consolidated debt-to-EBITDA ratio is below 4.25x. We expect the FFO-to-debt ratio to improve over the next three to five years as the company pursues growth at OneRail." OneRail is likely to continue stable stand-alone performance, with FFO to debt of about 28.5%-30.5% over the next two to three years. The company will pay off a A$86 million senior facility and it will increase senior debt with a new A$135 million facility, a A$70 million capital expenditure (capex) facility, and a A$20 million working capital limit. The new facility significantly reduces requirements for cash sweeps and mandatory amortization. S&P expects the company to use this extra capacity to fund growth capex over the forecast period. The company will keep benefiting from its exclusive coal haulage contract, which is valid until 2036 and includes a high take-or-pay component ensuring volume certainty until 2026. S&P expects capex will increase to A$55 million-A$110 million per annum over fiscal 2025 (ending Dec. 31, 2025) to fiscal 2027. This will lead to higher EBITDA in the following years. S&P said, "We expect shareholders to continue to support the group's strengthened credit standing. The recent equity infusion and debt refinancing demonstrate this. However, a history of following its financial policies, implementing its medium- to long-term growth strategy, and commitment to the rating remain key drivers for the company's credit quality. Our view on MIG will continue to drive our ratings on both OneRail and MRG. This is because we believe both OneRail and MRG are integral to the group. "The 'BBB-' issue rating on OneRail's senior secured debt reflects a very high level of recovery (95%) under a potential default scenario. This results in two notches of uplift from our issuer rating on OneRail. "We equalize the 'BB' issue rating on MRG's structurally subordinated mezzanine debt with the issuer rating on the company due to an average recovery rate of 40% under a potential default scenario. "Stable outlooks on OneRail and MRG reflect our view that steady cash flow from OneRail's contract with Glencore and incremental earnings from new contracts will continue to support the group's financial position over the next two to three years. This factors in the effect of the recent equity infusion on the group. "We expect OneRail's stand-alone FFO-to-debt ratio will remain about 28.5%-30.5% over the next two to three years. Earnings growth and some amortization of debt under the existing U.S. private placement (USPP) facility will support this. "We expect the group's consolidated FFO-to-debt ratio to rise to about 16%-17% in calendar years 2025 and 2026, up from an estimated 9.5% in calendar 2024. We expect it to settle above 13%, providing a buffer that supports our rating and outlook." The ratings on OneRail and MRG could come under pressure if the group's consolidated FFO-to-debt ratio were to fall below 13%. This could happen if the group takes on more debt, increases dividend payouts, or if OneRail's stand-alone business weakens materially. S&P's assessment of OneRail's stand-alone credit profile (SACP) could deteriorate if the company's FFO-to-debt ratio falls below 23% without a clear and timely plan to improve it with some buffer above this level. This could happen if: -- There are major disruptions or if operating performance and incremental earnings do not meet our expectations, resulting in lower above-rail coal volumes. -- Capex or dividend outflows are materially higher than S&P expects, indicating a higher risk appetite. S&P could raise the ratings on OneRail and MRG if the group maintains consolidated FFO-to-debt ratio above 23% with supportive policies. This could happen if earnings improve materially and the company is committed to maintaining this financial position. S&P said, "We could revise upward our assessment of OneRail's SACP if the company maintains an FFO-to-debt ratio above 30% on sustainable basis. The company may need to maintain higher credit ratios if its business position weakens, for example with a reduction in take-or-pay obligations and contracted pricing resets under the Glencore contract. A revision of the SACP would, in itself, not improve the rating. This is because we consider OneRail a core part of the group and equalize the rating with our view of the group." REDZED TRUST 2025-2: Fitch Assigns B+(EXP)sf Rating to Cl. F Notes ------------------------------------------------------------------ Fitch Ratings has assigned expected ratings to RedZed Trust Series 2025-2's mortgage-backed pass-through floating-rate notes. The issuance consists of notes backed by a pool of first-ranking Australian conforming and non-conforming residential full- and low-documentation mortgage loans originated by RedZed Lending Solutions Pty Limited. The notes will be issued by Perpetual Trustee Company Limited in its capacity as trustee of RedZed 2025-2. This is a separate and distinct series created under a master trust deed. Entity/Debt Rating ----------- ------ RedZed Trust Series 2025-2 A-1-S LT AAA(EXP)sf Expected Rating A-1-L LT AAA(EXP)sf Expected Rating A-2 LT AAA(EXP)sf Expected Rating B LT AA(EXP)sf Expected Rating C LT A(EXP)sf Expected Rating D LT BBB(EXP)sf Expected Rating E LT BB(EXP)sf Expected Rating F LT B+(EXP)sf Expected Rating G1 LT NR(EXP)sf Expected Rating G2 LT NR(EXP)sf Expected Rating KEY RATING DRIVERS Sufficient Credit Enhancement: The 'AAAsf' weighted-average (WA) foreclosure frequency (WAFF) of 19.2% is driven by the WA unindexed current loan/value ratio (LVR) of 66.7%, low documentation loans making up 88.2% of the pool, self-employed borrowers accounting for 93.7% and, under Fitch's methodology, non-conforming and investment loans forming 17.7% and 44.4%, respectively. The 'AAAsf' WA recovery rate (WARR) of 51.5% is driven by the portfolio's WA indexed scheduled LVR of 68.0%. The 'AAAsf' portfolio loss of 9.3% is higher than RedZed Trust Series 2024-3's loss of 8.6%, due primarily to a decrease in the WARR. The class A-1-S and A-1-L notes benefit from credit enhancement of 20% and the A-2, B, C, D, E and F notes benefit from 12.1%, 6.90%, 4.70%, 2.60%, 1.55% and 0.45%, respectively. Limited Liquidity Risk: Structural features include a liquidity facility sized at 1.5% of the class A-1-S to F invested balance, with a floor of AUD750,000. This is sufficient to mitigate Fitch's payment interruption risk. Other structural features include a retention amount that redirects excess available income to repay note principal in reverse sequential order (excluding G1 and G2 notes), with a limit of AUD500,000 and a post-call amortisation amount that redirects after-tax excess income to repay note principal through the principal priority of payments waterfall. Low Operational and Servicing Risk: RedZed, established in 2006, is an experienced specialist lender for self-employed borrowers. Fitch undertook an operational review and found that the operations of the originator and servicer were comparable with market standards. Tight Labour Market Supports Outlook: Portfolio performance is supported by Australia's continued growth and tight labour market. GDP growth was 1.1% in 2024 and unemployment was 4.1% in March 2025. Fitch forecasts GDP growth of 1.7% in 2025 and 1.9% in 2026, with unemployment at 4.3% and 4.2%, respectively. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Downgrade Sensitivities Transaction performance may be affected by changes in market conditions and the economic environment. Weakening asset performance is strongly correlated with increasing delinquencies and defaults, which could reduce credit enhancement available to the notes. Unanticipated increases in the frequency of defaults and loss severity on defaulted receivables could produce loss levels higher than Fitch's base case and are likely to result in a decline in credit enhancement and remaining loss-coverage levels available to the notes. Decreased credit enhancement may make certain note ratings susceptible to negative rating action, depending on the extent of the coverage decline. Hence, Fitch conducts sensitivity analysis by stressing a transaction's initial base-case assumptions. Note: A-1-S / A-1-L / A-2 / B / C / D / E / F Expected Ratings: AAAsf / AAAsf / AAAsf / AAsf / Asf / BBBsf / BBsf / B+sf Increase defaults by 15%: AAAsf / AAAsf / AAAsf / AA-sf / A-sf / BBB-sf / BB-sf / Bsf Increase defaults by 30%: AAAsf / AA+sf / AA+sf / A+sf / BBB+sf / BB+sf / B+sf / Bsf Reduce recoveries by 15%: AAAsf / AAAsf / AAAsf / AAsf / Asf / BBBsf / BBsf / B+sf Reduce recoveries by 30%: AAAsf / AAAsf / AAAsf / AAsf / Asf / BBBsf / BBsf / B+sf Increase defaults by 15% and reduce recoveries by 15%: AAAsf / AAAsf / AAAsf / AA-sf / A-sf / BBB-sf / BB-sf / Bsf Increase defaults by 30% and reduce recoveries by 30%: AAAsf / AA+sf / AA+sf / A+sf / BBB+sf / BB+sf / B+sf / Bsf Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrade Sensitivities An upgrade could result from macroeconomic conditions, loan performance and credit losses that are better than Fitch's baseline scenario or sufficient build-up of credit enhancement that would fully compensate for credit losses and cash flow stresses commensurate with higher rating scenarios, all else being equal. The class A ratings are at the highest level on Fitch's scale and cannot be upgraded. Prepayments to the loans with the largest obligor exposure, which result in the notes passing Fitch's concentration test, could lead to positive rating action for the notes, all else being equal. Notes: B / C / D / E / F Expected Rating: AAsf / Asf / BBBsf / BBsf / B+sf Reduce defaults by 15% and increase recoveries by 15%: AA+sf / A+sf / BBB+sf / BB+sf / BB-sf USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Prior to transaction closing, Fitch sought to receive a third party assessment conducted on the asset portfolio information, but none was made available for this transaction. As part of its ongoing monitoring, Fitch conducted a review of a small, targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis, according to its applicable rating methodologies indicates, that it is adequately reliable. ESG Considerations 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. TOPKNOTZ PTY: First Creditors' Meeting Set for May 22 ----------------------------------------------------- A first meeting of the creditors in the proceedings of Topknotz Pty Ltd will be held on May 22, 2025 at 11:00 a.m. via virtual meeting. Bruce Gleeson of Jones Partners Insolvency & Restructuring was appointed as administrator of the company on May 13, 2025. ========= C H I N A ========= AESTHETIC MEDICAL: Onestop Assurance Raises Going Concern Doubt --------------------------------------------------------------- Aesthetic Medical International Holdings Group Limited disclosed in a Form 20-F Report filed with the U.S. Securities and Exchange Commission for the fiscal year ended December 31, 2024, that its auditor has expressed substantial doubt about the Company's ability to continue as a going concern. Singapore-based Onestop Assurance PAC, the Company's auditor since 2023, issued a "going concern" qualification in its report dated April 25, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company had a loss of RMB25.1 million and net current liabilities of RMB314 million as at December 31, 2024, and together with other conditions raise substantial doubt about its ability to continue as a going concern. Besides continuing to negotiate with the banks, the Group is evaluating several measures of financing, such as external financings,which will also be considered. Currently, the Group intends to raise loans from financial institutions and potential funders to maintain its normal operations. The Group's ability to continue as a going concern is primarily dependent on the Group's ability to arrange adequate financing arrangements and generate cash flows from its operations. The Group closed its private placement with Hainan Oriental Jiechuang Investment Partnership for aggregate gross proceeds of RMB170 million in February 2023 and utilized the money to fund its business development and working capital. Ms. Wu Binhua, the director of the Company, signed a letter of continuing financial support with the Group, in which she undertakes to enable the Group to meet its liabilities and obligations as and when they fall due, for at least 12 months from the date of 20-F for the year ended December 31, 2024. In addition to the financial support, Ms. Wu Binhua also leverages her corporate management and talent training advantages to optimize the operations of the Group. No assurance can be provided that these additional financings will be available on acceptable terms or at all. If management is unable to execute this plan, there would likely be a material adverse effect on the Group's business. These consolidated financial statements have been prepared on a going concern basis, which assumes that the Group will be able to continue in operation for the foreseeable future and will be able to realize its assets and discharge its liabilities and commitments in the normal course of business. A full-text copy of the Company's Form 20-F is available at: https://tinyurl.com/2wttn3vk About Aesthetic Medical Shenzhen, China-based Aesthetic Medical International Holdings Group Limited and its subsidiaries are engaged in the provision of non-surgical aesthetic medical services, surgical aesthetic medical services, other aesthetic medical services and general healthcare services in the People's Republic of China. As of December 31, 2024, the Company had RMB486.2 million in total assets, RMB476.9 million in total liabilities, and a total equity of RMB9.3 million. FANGDD NETWORK: Audit Alliance Raises Going Concern Doubt --------------------------------------------------------- Fangdd Network Group Ltd. disclosed in a Form 20-F Report filed with the U.S. Securities and Exchange Commission for the fiscal year ended December 31, 2024, that its auditor has expressed substantial doubt about the Company's ability to continue as a going concern. Singapore-based Audit Alliance LLP, the Company's auditor since 2022, issued a "going concern" qualification in its report dated April 23, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Group had an accumulated deficit of RMB4,618.6 million as of December 31, 2024, and had negative cash flows from operating activities of RMB60.4 million for the year ended December 31, 2024, that raise substantial doubt about its ability to continue as a going concern. The Group incurred a net loss of RMB239.6 million and RMB93.1 million in 2022 and 2023, respectively, and a net income of RMB28.3 million (US$3.9 million) in 2024. It had negative cash flows from operating activities of RMB127 million, RMB186.1 million and RMB60.4 million (US$8.3 million) in 2022, 2023 and 2024, respectively. The Group has prepared a future cash flow forecasts, taken the actions of equity financing and the management is of the opinion that the Group will have sufficient unrestricted liquidity for at least the next 12 months from the date of approval of the Consolidated Financial Statements. Among the assumptions made by the management, it is expected that the Group will continue to reduce its operating expenditure by reducing headcounts and office space. Accordingly, management concludes that it is appropriate to prepare the financial statements on a going concern basis. The Group has taken positive actions to speed up the collection of accounts receivable, such as litigation, strict developer credit rating management, but the effects of these actions may be limited where the developers have already been in severe finance distress. The Group also intends to obtain additional equity or debt financing arrangements, however, the availability and amount of such funding are not certain. Additionally, the strict macroeconomic regulation on real estate market and the tightening of mortgage lending activities have negatively impacted the real estate market and heightened the credit risk associated with developers. The new and resale property transactions are expected to remain vulnerable to macro challenges for an extended period, which may adversely impact the Group's ability to raise the financing needed. A full-text copy of the Company's Form 20-F is available at: https://tinyurl.com/3hz9bm4h About Fangdd Network Shenzhen, China-based Fangdd Network Group Ltd. is an investment holding company. The Company, through its consolidated subsidiaries, variables interest entity and variables interest entity's subsidiaries is principally engaged in the provision of real estate information services through its online platform which also offers integrated marketing services for individual customers, real estate developers and agents in the People's Republic of China. As of December 31, 2024, the Company had US$100.2 million in total assets, US$47.7 million in total liabilities, and a total shareholders' equity of US$52.5 million. SENMIAO TECHNOLOGY: All Five Proposals OK'd at Annual Meeting ------------------------------------------------------------- Senmiao Technology Limited disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that the Company held its annual meeting of stockholders for its fiscal year ended March 31, 20234. Holders of 6,667,841 shares of the Company's common stock were present in person or by proxy at the Annual Meeting, representing 63.4% of the total outstanding shares of common stock and therefore constituting a quorum of more than a majority of the shares outstanding and entitled to vote at the Annual Meeting as of March 7, 2025, the record date. The final voting results for each matter submitted to a vote of stockholders at the meeting are as follows: 1. A proposal to elect five directors to the Company's board of directors to hold office until the next annual meeting and until their successors are duly elected and qualified: a. Xi Wen Votes For: 5,872,055 Votes Withheld: 13,320 b. Xiaojuan Lin Votes For: 5,872,054 Votes Withheld: 13,321 c. Trent D. Davis Votes For: 5,872,054 Votes Withheld: 13,321 d. Sichun Wang Votes For: 5,870,381 Votes Withheld: 14,994 e. Jie Gao Votes For: 5,872,055 Votes Withheld: 13,320 2. A proposal to ratify the appointment of Marcum Asia CPAs LLP as the Company's independent registered public accounting firm for the fiscal year ending March 31, 2025: For: 6,659,541 Against: 3,100 Abstain: 5,200 3. A proposal to approve future adjustments of exercise prices of the Company's warrants issued on November 8, 2021 pursuant certain securities purchase agreement below their Nasdaq Minimum Price in accordance with the terms of such November 2021 Warrants: For: 5,835,367 Against: 49,325 Abstain: 683 4. A proposal to approve, on an advisory and non-binding basis, the compensation of the Company's named executive officers: For: 5,835,474 Against: 49,325 Abstain: 576 5. A proposal to select, on a non-binding, advisory basis, the frequency of conducting future stockholder advisory votes on named executive officer compensation: Votes For One Year: 501,823 Votes For Two Years: 6 Votes For Three Years: 5,383,046 Abstentions: 500 Pursuant to the foregoing votes: (i) Xi Wen, Xiaojuan Lin, Trent D. Davis, Sichun Wang and Jie Gao were elected to serve as the Company's board of directors to hold office until the next annual meeting and until their successors are duly elected and qualified; (ii) Marcum Asia CPAs LLP was ratified as the Company's independent registered public accounting firm for the fiscal year ending March 31, 2025; (iii) future adjustments of exercise prices of the November 2021 Warrants pursuant to the SPA below their Nasdaq Minimum Price in accordance with the terms of such November 2021 Warrants were approved; and (iv) the compensation of the Company's named executive officers was approved. Pursuant to the foregoing votes, three years were selected to be frequency of conducting future stockholder advisory votes on named executive officer compensation. About Senmiao Technology Limited Senmiao Technology Limited is a provider of automobile transaction and related services, connecting auto dealers and consumers, who are mostly existing and prospective ride-hailing drivers affiliated with different operators of online ride-hailing platforms in the People's Republic of China. The Company provides automobile transaction and related services through its wholly owned subsidiary, Chengdu Corenel Technology Limited, a PRC limited liability company, and its majority owned subsidiaries, Chengdu Jiekai Technology Ltd., and Hunan Ruixi Financial Leasing Co., Ltd., a PRC limited liability company. Since October 2020, the Company also operates an online ride-hailing platform through Hunan Xixingtianxia Technology Co., Ltd. ("XXTX"), a wholly-owned subsidiary of Sichuan Senmiao Zecheng Business Consulting Co., Ltd., its wholly-owned subsidiary. The Company's platform enables qualified ride-hailing drivers to provide application-based transportation services mainly in Chengdu, Changsha and other 20 cities in China. Substantially all of the Company's operations are conducted in China. New York, New York-based Marcum Asia CPAs LLP, the Company's auditor since 2018, issued a "going concern" qualification dated June 27, 2024. The report cited that the Company has a significant working capital deficiency, has incurred significant losses and needs to raise additional funds to meet its obligations and sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of Dec. 31, 2024, Senmiao Technology had $7.89 million in total assets, $5.43 million in total liabilities, $234,364 in series A convertible preferred stock, and $2.23 million in total equity. XINYUAN REAL: Defers Notes Interest; 45% Bondholder Support Secured ------------------------------------------------------------------- Xinyuan Real Estate Co., Ltd. disclosed in a Form 6-K Report filed with the U.S. Securities and Exchange Commission that pursuant to an indenture, dated August 18, 2023, as amended by the supplemental indentures, the Company has decided not to pay any interest accrued and payable for the 3.0% senior notes due 2027 under the September 2027 Indenture for the interest period up to (and excluding) March 30, 2025, with grace period ending on April 30, 2025. The Company has been in discussions with various holders of its outstanding dollar bonds, including the notes under the September 2027 Indenture, regarding a potential restructuring of the Relevant Notes. As of May 2, 2025, the Company has reached agreement on key terms for signing the Restructuring Support Agreement in support of such restructuring transaction with bond holders representing in aggregate over approximately 45% of the principal value of the Company's Relevant Notes. The Company is in ongoing discussions with additional holders of the Relevant Notes and is pursuing further restructuring support from such holders. About Xinyuan Real Estate Co. Ltd. Xinyuan Real Estate Co. Ltd., headquartered in Beijing, is a residential real estate developer primarily focused on China's tier-one and tier-two cities. Founded in 1997, the Company targets middle-income homebuyers with large-scale, high-quality housing projects and has extended its operations to the U.S., U.K., and Malaysia. Xinyuan also offers property management and ancillary services, and its shares trade on the New York Stock Exchange under the ticker symbol XIN. Creditors of Xinyuan Real Estate Co. Ltd. sought involuntary petition under Chapter 11 of the U.S. Bankruptcy (Bankr. S.D.N.Y. Case No. 25-10745) on April 14, 2025. The Debtor is represented by Paul R. DeFilippo, Esq., at Wollmuth Maher & Deutsch, LLP. ================= H O N G K O N G ================= PARKVIEW GROUP: Gets HK$300 Million Private Loan from PAG --------------------------------------------------------- Bloomberg News reports that Parkview Group has obtained a HK$300 million private credit loan from investment firm PAG, according to a source familiar with the matter, as banks grow reluctant to extend funds to the cash-strapped developer. According to Bloomberg, the bridge loan carries a nine-month tenor and offers a yield in the low-to-mid-teens, sources familiar with the matter said, asking not to be identified discussing private matters. PAG's funding could be a relief for the company as it struggles to refinance its existing bank borrowings, they said. Several existing lenders of Parkview, including Nanyang Commercial Bank and other Hong Kong and mainland Chinese banks, have been looking to reduce their exposure to the developer, the sources added, Bloomberg relays. Since late last year, the company has been in talks for private credit funding of at least HK$2.8 billion, offering two residential towers, parking spaces at one of its developments and others as collateral. But it's unclear if any of the mentioned assets, which include the apartment complex Hong Kong Parkview, were offered as security in PAG's loan, according to Bloomberg. Bloomberg says the deal highlights the broader troubles facing Hong Kong's property market. The city has been grappling with a sluggish economy and a shift in demographics that have weighed on home prices, which declined by about 28 per cent from their peak in 2021, according to data from Centaline Property Agency. But Parkview's challenges extend beyond Hong Kong, Bloomberg states. In March, the company avoided a technical default on a US$940 million loan backed by a Beijing shopping mall complex. It is still in talks with banks to refinance the borrowing, which is set to mature in August, Bloomberg relates citing other sources familiar with the matter. Headquartered in Hong Kong, Parkview Group engages in real estate developments, and leisure industry developments. ========= I N D I A ========= A K ENTERPRISES: CRISIL Reaffirms B- Rating on INR9cr New Loan -------------------------------------------------------------- Crisil Ratings has reaffirmed its rating on the long-term bank facility of A K Enterprises (AKE) at 'Crisil B-/Stable'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 0.65 Crisil B-/Stable (Reaffirmed) Proposed Fund- Based Bank Limits 9 Crisil B-/Stable (Reaffirmed) Proposed Fund- Based Bank Limits 0.35 Crisil B-/Stable (Reaffirmed) The rating continues to reflect the firm's exposure to inherent cyclicality in demand, modest scale of operations and lower-than-expected margin. These weaknesses are partially offset by the extensive industry experience of the proprietor and efficient working capital cycle. Analytical Approach Crisil Ratings has considered a standalone approach for the rating exercise of AKE. Key Rating Drivers & Detailed Description Weaknesses: * Exposure to inherent cyclicality in demand: The industry is cyclical and moves in line with the level of activity in the construction sector. Thus, the firm is likely to remain susceptible to the inherent cyclicality in the end-user industries. * Modest scale of operations: Despite multiple sources of income, intense competition has kept revenue muted, as reflected in turnover of INR4.35 crore in fiscal 2024; sales were about INR4.66 crore in the 10 months of fiscal 2025. Small scale will continue to limit operating flexibility. * Lower-than-expected margin: Higher labour charges led to a weak operating margin of 2.15% in fiscal 2024 against 5.53% in fiscal 2023. The improvement in the margin will remain monitorable over the medium term. Strengths: * Extensive industry experience of the proprietor: Longstanding presence has enabled the proprietor to develop a strong understanding of the market dynamics and establish healthy relationships with suppliers and customers. * Above-average financial risk profile: Gearing was strong at 0.05 time as on March 31, 2024, due to absence of any external borrowings. However, the networth was modest at INR0.27 crore. Improvement in the networth through high accretion to reserve and capital infusion will remain monitorable. The firm is also planning to avail for cash credit limit as well as some term debt in the near term. Thus, the capital structure is expected to become more leveraged due to the same. Furthermore, the debt protection metrics were comfortable, as reflected in the interest coverage and net cash accrual to total debt ratios of 28.08 times and 4.33 times, respectively, in fiscal 2024. The sustenance of the financial risk profile, despite the plans to avail for debt, will remain a key monitorable. Liquidity: Stretched Cash accrual is expected to be over INR0.22-0.25 crore per annum, against term debt obligation of INR0.01 crore over the medium term. In addition, it will act as a cushion to the liquidity of the company. The current ratio was 2.7 times as on March 31, 2024. Outlook: Stable Crisil Ratings believes AKE will continue to benefit over the medium term from its longstanding relationships with principals and experience of the management in mitigating the inherent risk in the trading business. Rating sensitivity factors Upward factors: * Sustained revenue growth over the medium term to over INR10-12 crore, with sustenance of operating margins over 4%, leading to higher cash accruals * Improvement in the liquidity and improved networth Downward factors: * Decline in revenue by over 20% or dip in operating profits below 4%, leading to lower net cash accrual * Large debt funded capital expenditure or stretch in working capital cycle adversely affecting, financial risk profile or liquidity of the company AKE was set up in 2010 as a proprietorship firm by Ms Kumari Ranjana. It is engaged in civil construction works and trades in construction material. The firm also supplies manpower. ARA TILES: CRISIL Moves B+ Debt Ratings to Not Cooperating ---------------------------------------------------------- CRISIL Ratings has migrated the ratings on certain bank facilities of ARA Tiles Private Limited (ARATPL), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 21.32 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Long Term Bank Loan Facility 11.68 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Working Capital Facility 8 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Crisil Ratings has been consistently following up with ARATPL for obtaining NDS through letters/emails dated February 28, 2025, March 28, 2025 and April 30, 2025 among others, apart from telephonic communication to seek the same. After non-receipt of NDS for 2 consecutive months, we also sent a letter dated April 22, 2025 reminding the issuer to share the NDS. However, the issuer has remained non cooperative. Crisil Ratings has also tried to reach out to the lenders of ARATPL to confirm timely debt servicing during these months, but awaits any feedback. '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 NDSs from ARATPL, which restricts Crisil Ratings' ability to take a forward looking view on the entity's credit quality. Further, non-sharing of NDS by issuers may reflect operational issues faced by issuers in some cases. On the other hand, it may be a beginning of a general non-cooperation and may extend to non-submission of other information. Crisil Ratings believes that rating action on ARATPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of ARATPL migrated to 'Crisil B+/Stable Issuer not cooperating' Incorporated in 2017, ARATPL manufacturers and sells ceramic, polished vitrified, glazed vitrified and unglazed tiles for domestic, commercial, industrial and outdoor applications. Company is starting their manufacturing facility of ceramic tiles with 15000 boxes per days in the month of June 2024. ARORA INDUSTRIES: CARE Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Arora Industries (AI) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 79.88 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Ltd. had, vide its press release dated May 3, 2024, placed the rating(s) of AI under the ‘issuer non-cooperating’ category as AI had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. AI continues to be non-cooperative despite repeated requests for submission of information through e-mails dated March 19, 2025, March 29, 2025 and April 8, 2025 among others. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.’s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Analytical approach: Standalone Outlook: Not Applicable Arora Industries is a Partnership Firm registered with Registrar of firms of Indian Partnership Act,1932. The firm is managed by Shri Mohinder Singh Arora and Ravinder Pal Singh, both are partners in this firm. The firm is engaged in manufacturing and exports of Knitted Fabrics, Home Textiles, Garments, Mink Blankets and other substitutes. DEGNA BIOENERGY: CRISIL Moves B+ Debt Rating to Not Cooperating --------------------------------------------------------------- CRISIL Ratings has migrated the ratings on certain bank facilities of Degna Bioenergy Private Limited (DBPL), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Long Term Loan 39.52 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Crisil Ratings has been consistently following up with DBPL for obtaining NDS through letters/emails dated February 28, 2025, March 28, 2025 and April 30, 2025 among others, apart from telephonic communication to seek the same. After non-receipt of NDS for 2 consecutive months, we also sent a letter dated April 22, 2025 reminding the issuer to share the NDS. However, the issuer has remained non cooperative. Crisil Ratings has also tried to reach out to the lenders of DBPL to confirm timely debt servicing during these months, but awaits any feedback. '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 NDSs from DBPL, which restricts Crisil Ratings' ability to take a forward looking view on the entity's credit quality. Further, non-sharing of NDS by issuers may reflect operational issues faced by issuers in some cases. On the other hand, it may be a beginning of a general non-cooperation and may extend to non-submission of other information. Crisil Ratings believes that rating action on DBPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of DBPL migrated to 'Crisil B+/Stable Issuer not cooperating' DBPL, incorporated in February 2023, is establishing a biogas plant in Uttar Pradesh, strategically located to utilise local biodegradable waste. The plant will produce 24,000 cubic metre of raw biogas per day, yielding 9.6 TPD of CBG and biofertilisers as byproducts. The estimated total project cost is INR60.66 crore. Dr Shaksham Mittal and Dr Navin Mittal are directors of the company. GENSOL ENGINEERING: IREDA Files Insolvency Plea Against Company --------------------------------------------------------------- Business Today reports that the Indian Renewable Energy Development Agency (Ireda) has initiated legal action under Section 7 of the Insolvency and Bankruptcy Code against Gensol Engineering due to the company's failure to repay a loan of INR510 crore. This was disclosed in a stock exchange announcement on May 14. If the National Company Law Tribunal (NCLT) accept the insolvency petition, it is anticipated that all of Gensol's creditors will need to submit their claims to the resolution professional appointed by the court, and the company's equity value may potentially be lost, Business Today says. On May 14, Gensol Engineering shares rose by 5 percent to reach INR60 each. Market cap of the firm stood at INR228.55 crore. According to Business Today, the company is also under the scrutiny of various regulatory bodies, including a Securities and Exchange Board of India (Sebi) investigation regarding allegations of fund diversion by its promoters from the publicly traded company. In response to the Sebi directive, Gensol's founders, Anmol Singh Jaggi and his brother Puneet Singh Jaggi, stepped down from their positions on the board, Business Today relates. In March 2025, CARE Ratings and ICRA downgraded Gensol Engineering's bank facilities from BB+ (Stable) to 'CARE D' due to concerns over falsified debt servicing documents, raising serious corporate governance issues. Acknowledging the downgrade, Gensol announced a debt reduction plan to address investor concerns. Gensol Engineering is a part of the Gensol Group of companies, which offers engineering, procurement, and construction (EPC) services for the development of solar power plants. GLOBAL POLYBAGS: CRISIL Moves B+ Debt Ratings to Not Cooperating ---------------------------------------------------------------- Due to inadequate information and in line with the Securities and Exchange Board of India guidelines, Crisil Ratings had migrated its rating on the long-term bank facilities of Global Polybags Industries Private Limited (Global) to 'Crisil B/Stable/Crisil A4 Issuer Not Cooperating'. However, the management has subsequently started sharing requisite information, necessary for carrying out comprehensive review of the rating. Consequently, Crisil Ratings is migrating the rating on bank facilities of Global to 'Crisil B+/Stable' from 'Crisil B/Stable Issuer Not Cooperating'. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 30 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Export Packing 10 CRISIL B+/Stable (Issuer Not Credit Cooperating; Rating Migrated) Export Packing 85 CRISIL B+/Stable (Issuer Not Credit Cooperating; Rating Migrated) Term Loan 10 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Term Loan 25 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) The ratings continue to reflect Global's working capital-intensive operations, exposure to volatility in crude oil prices and foreign exchange (forex) rates and their average financial risk profile. These weaknesses are partially offset by the extensive experience of the promoter in the packaging industry, Global's established position in the polybags manufacturing business and moderate scale of operations. Analytical Approach Crisil Ratings has evaluated the standalone business and financial risk profiles of Global. Key Rating Drivers & Detailed Description Weaknesses: * Working capital-intensive operations: The customers are offered significant credit of 120-180 days, resulting in stretched working capital cycle. Furthermore, the company has an inventory holding period of 60-80 days on average. These factors led to estimated gross current asset of 300 days as on March 31, 2025 (305 days as on March 31, 2024). * Exposure to volatility in crude oil prices and forex rates: Key inputs, high-density polyethylene and polypropylene granules, are petroleum derivatives. Hence, raw material prices and profitability remain vulnerable to any sharp movement in crude oil prices. The other key input is kraft paper, which is also a volatile material and hence, the profitability will remain susceptible to fluctuations in prices of kraft paper. Also, exports account for nearly 40% of the revenue, and receivables are hedged through forward cover exposing the company to forex risk. * Average financial risk profile: The financial risk profile is moderate, supported by comfortable net worth however, constrained by high gearing and subdued debt protection metrics. The company has been undertaking continuous debt funded capital expenditure (capex), resulting in high debt and thus, more leverage. Networth and gearing are estimated at around INR86 crore and over 3.1 times, respectively, as on March 31, 2025 (Rs 82.39 crore and 3.23 times, respectively, as on March 31, 2024). Debt protection metrics were modest, with net cash accrual to total debt and interest coverage ratios of around 4% and 1.6 times, respectively, for fiscal 2024. Strengths: * Extensive experience of the promoters and strong market position: Backed by presence of over a decade and half in the polybags manufacturing business, the company has capacity of over 41,000 metric tonne per month. They also started the paper bag manufacturing business about three years ago, with current capacity of 10,000 metric tonne per month. Benefits from healthy operating capabilities and robust relationships with key customers and suppliers will continue. * Moderate scale of operations: The company's scale of operations has been healthy and growing on-year at a compounded annual growth rate (CAGR) of 11%, over the past three fiscals, through fiscal 2025. This is supported by increasing manufacturing capacities and higher sales volume. The company reported about INR417 crore revenue in fiscal 2025 (Rs 354 crore in fiscal 2024). Liquidity: Stretched Bank limit utilisation was 93% on average for the 12 months through March 2025. Cash accrual is expected to be INR13-14 crore in fiscal 2026 against term debt obligation of INR17-18 crore. However, the promoters infuse funds on a need basis and will support the business. From fiscal 2027 onwards, the net cash accrual is expected to be sufficient to meet the repayment obligations. The current ratio was 1.38 times as on March 31, 2024. Outlook: Stable Crisil Ratings believes Global will continue to benefit from its established position in the polybags manufacturing business. Rating sensitivity factors Upward factors * Sustained improvement in the scale of operations and sustenance of the operating margin, leading to cash accruals of over INR16 crore * Improvement in the working capital cycle and liquidity, with net cash accrual being sufficient to cover repayment obligations Downward factors * Decline in the scale of operations leading to fall in revenue by over 20% or profitability margin below 5%, hence leading to low net cash accrual * Large debt-funded capital expenditure or a substantial increase in the working capital requirement thus weakening the liquidity and financial risk profile Established in 1996 as a partnership entity and reconstituted as a private limited company in 1998, Global manufactures plastic containers and bags. The operations of the Virudhunagar (Tamil Nadu)-based company are managed by the promoter, Mr. T Muralitharan. GMR HYDERABAD: Moody's Hikes CFR to Ba1, Alters Outlook to Stable ----------------------------------------------------------------- Moody's Ratings has upgraded GMR Hyderabad International Airport Limited (HIAL)'s corporate family rating and senior secured ratings to Ba1 from Ba2 and changed the outlook on all ratings to stable from positive. "The rating action reflects HIAL's continued solid operating performance in the first nine months of fiscal 2024-25 ending March 31, 2025 (fiscal 2025), driving its credit metrics above the upgrade threshold set for its current Ba2 rating. The financial profile over the next 2-3 years will be further supported by projected traffic growth, approved tariff increases as well as a further increase in revenue from commercial non-aeronautical businesses," says Abhishek Tyagi, a Moody's Ratings Vice President and Senior Credit Officer. RATINGS RATIONALE HIAL's ratings further reflect the airport's established market position in its catchment area, which has a predominantly domestic origin and destination passenger mix, the fundamentally supportive regulatory environment in India, and the favorable industry dynamic in India, which will underpin traffic growth over the next decade. Moody's expects HIAL's operating cash flow to improve over the next 2-3 years, factoring in continued passenger traffic growth in the low double-digit percentage range per annum, which in turn will underpin the projected increase in both aeronautical as well as commercial non-aeronautical revenue. The projected growth in operating cash flow, along with Moody's expectations of a stable or reducing debt balance post expansion, will support an improvement in HIAL's funds from operations (FFO)/debt to above the upper tolerance level under Moody's base case scenario. Moody's base case scenario assumes a resumption of dividend payments to its shareholders from fiscal 2025. Moody's expects HIAL's regulated aeronautical revenue to increase at the next control period, considering its increased regulated asset base post expansion as well as the recovery of around INR7 billion of deferred revenue in the last tariff determination with carrying cost, which will give HIAL a further financial buffer to undertake further expansion or manage any unexpected challenges in its operations. In the first nine months of fiscal 2025, HIAL reported non-aeronautical revenue of INR11.5 billion, which increased by 46% relative to the prior year. The improvement was driven by the expanded footprint of HIAL's commercial activities at the terminal and within the airport precinct, as well as efforts to improve the commercial service offerings. Moody's expects growth in its non-aeronautical business to continue to outpace passenger traffic increase over the next 1-2 years, considering the additional floor space still to be opened within the expanded terminal as well as investments planned in the hotel, cargo and retail segments. HIAL's expansion to 34 million passenger capacity is complete, effectively removing the risks associated with further cost overrun or delays. Depending on passenger traffic growth at the airport, HIAL may need to embark on its next expansion towards the back end of the next control period, which will be incorporated into Moody's projections when more information becomes available. Moody's expects no significant impact on HIAL's operations or business profile from additional US tariffs or ongoing trade policy uncertainty. As of the end of December 2024, HIAL had cash and short-term investments of around INR 18 billion, which will be sufficient to meet its operating cash requirement, dividends and planned capital investment. HIAL has good access to domestic capital markets, evidenced by its multiple India rupee-denominated capital market issuances over the past two years to fund its expansion and refinance maturing debt. The stable outlook reflects Moody's expectations that HIAL's financial metrics will remain at a level consistent with its rating within the next 12-18 months. Ba1 ratings reflect HIAL's financial flexibility amid geopolitical tensions on India's western border for short-term disruptions. However, prolonged airport and airspace closures could harm the credit profile and will be closely monitored by us. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade HIAL's ratings if it can maintain its solid operating performance at the airport and sustainably improve its financial profile. Credit metrics Moody's would consider for an upgrade include FFO/debt improving above 11%-12% on a sustained basis and retained cash flow RCF/debt remaining above 6%-7%. On the other hand, Moody's could downgrade HIAL's ratings if its FFO/debt falls below 8% or RCF debt falls below 4% on a sustained basis, which could arise from a material underperformance in its operations or a greater-than-expected debt incurrence to fund additional capital expenditure or dividends. A downgrade of the ratings is also likely if its related-party transactions significantly increase. The principal methodology used in these ratings was Privately Managed Airports and Related Issuers published in November 2023. GMR Hyderabad International Airport Limited has a long-term concession to operate the Rajiv Gandhi International Airport in Hyderabad, under a public-private partnership model. The airport is one of India's leading airports in terms of passenger traffic, with a design capacity of 34 million passengers per annum (MPPA). Equity in the company is held by GMR Airports Infrastructure Limited (74%), Airports Authority of India (13%) and the Government of Telangana (13%). GOOD MORNING: CRISIL Moves B Debt Ratings to Not Cooperating ------------------------------------------------------------ CRISIL Ratings has migrated the ratings on certain bank facilities of Good Morning India Media Private Limited (GMIMPL), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Overdraft Facility 4.85 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Overdraft 5.00 CRISIL B/Stable (Issuer Not Facility Cooperating; Rating Migrated) Term Loan 0.15 CRISIL B/Stable (Issuer Not Cooperating; Rating Migrated) Crisil Ratings has been consistently following up with GMIMPL for obtaining NDS through letters/emails dated February 28, 2025, March 28, 2025 and April 30, 2025 among others, apart from telephonic communication to seek the same. After non-receipt of NDS for 2 consecutive months, we also sent a letter dated April 22, 2025 reminding the issuer to share the NDS. However, the issuer has remained non cooperative. Crisil Ratings has also tried to reach out to the lenders of GMIMPL to confirm timely debt servicing during these months, but awaits any feedback. '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 NDSs from GMIMPL, which restricts Crisil Ratings' ability to take a forward looking view on the entity's credit quality. Further, non-sharing of NDS by issuers may reflect operational issues faced by issuers in some cases. On the other hand, it may be a beginning of a general non-cooperation and may extend to non-submission of other information. Crisil Ratings believes that rating action on GMIMPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of GMIMPL migrated to 'Crisil B/Stable Issuer not cooperating' Incorporated in 2006 and promoted by Mr. Rakesh Sharma and Mr. Intzar Ali, GMIMPL undertakes printing, publishing and circulation of daily and weekly newspapers, magazines, periodicals, journals and other publications. It has printing presses in Ambala (Haryana) and Noida (Uttar Pradesh). GVK ENERGY: Admitted to NCLT Against IDBI's Plea ------------------------------------------------ The Economic Times reports that the National Company Law Tribunal (NCLT) has started insolvency proceedings against GVK Energy Limited on an application filed by IDBI Bank for a debt of INR1,106 crore. GVK Energy was a guarantor for loans taken by its group company, GVK Power (Goindwal Sahib) Ltd. The Hyderabad bench of NCLT has appointed Venkata Chalam Varanasi as interim resolution professional while ordering the initiation of CIRP, ET discloses. According to ET, IDBI Bank, part of a group of lenders, had provided a term loan of INR733.85 crore and working capital limits of INR153.75 crore to GVK Power (Goindwal Sahib) Ltd for a coal-based thermal power plant in Punjab. GVK Energy Limited gave a corporate guarantee in July 2017 to secure the loan extended to GVK-Goindwal, ET notes. GVK-Goindwal defaulted on its repayments. The account was declared a Non-Performing Asset (NPA) on Feb. 18, 2018, with effect from July 31, 2016. On Feb. 8, 2019, IDBI Bank issued a recall notice to GVK Energy (corporate guarantor) demanding INR989.66 crore by Feb. 15, 2019. Though a resolution plan for GVK Power was approved in December 2023, IDBI Bank said it could recover only INR306 crore, ET relates. The bank then approached NCLT to recover the balance from GVK Energy. According to the report, GVK Energy said that no dues existed after the resolution plan of GVK-Goindwal was approved in December 2023 and the guarantee stood extinguished under the resolution plan. Also, the guarantee was invoked by IDBI Trusteeship, not the actual creditor. ET says the tribunal rejected GVK Energy's argument that the debt was cleared after the resolution of GVK Power. It cited Supreme Court rulings that say a guarantor remains liable even if the main borrower has settled its dues under insolvency. The tribunal also dismissed GVK's claim that the case was filed too late, saying it was filed well within the limitation period, adds ET. GVK Energy develops, constructs and operates a network of power stations in India. HARI OM: CRISIL Withdraws B Rating on INR20cr Cash Debt ------------------------------------------------------- Crisil Ratings has withdrawn its rating on the bank facilities of Hari Om Industries Limited (HIL) on the request of the company and after receiving no objection certificate from the bank. The rating action is in-line with Crisil Rating's policy on withdrawal of its rating on bank loan facilities Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 20 Crisil B/Stable/Issuer Not Cooperating (Withdrawn) Term Loan 4 Crisil B/Stable/Issuer Not Cooperating (Withdrawn) Crisil Ratings has been consistently following up with HIL 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 HIL. This restricts Crisil Ratings' ability to take a forward looking view on the credit quality of the entity. Crisil Ratings believes that rating action on HIL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, Crisil Ratings has continued the rating on bank facilities of HIL to 'Crisil B/Stable Issuer Not Cooperating'. Incorporated in 2009, by promoters, Mr. Surendra Kumar Gupta, Mr. Virendra Kumar Gupta, and Mr. Rajendra Kumar Gupta, HIL manufactures Kraft paper at its unit in Dhankutti, Kanpur. Operations began in 2011. JVS BIOFUELS: CRISIL Moves B+ Debt Rating to Not Cooperating ------------------------------------------------------------ CRISIL Ratings has migrated the ratings on certain bank facilities of JVS Biofuels Private Limited (JVSBPL), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 11 CRISIL B-/Stable (Issuer Not Not Cooperating) Term Loan 68 CRISIL B-/Stable (Issuer Not Not Cooperating) Crisil Ratings has been consistently following up with JVSBPL for obtaining NDS through letters/emails dated February 28, 2025, March 28, 2025 and April 30, 2025 among others, apart from telephonic communication to seek the same. After non-receipt of NDS for 2 consecutive months, we also sent a letter dated April 22, 2025 reminding the issuer to share the NDS. However, the issuer has remained non cooperative. Crisil Ratings has also tried to reach out to the lenders of JVSBPL to confirm timely debt servicing during these months, but awaits any feedback. '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 NDSs from JVSBPL, which restricts Crisil Ratings' ability to take a forward looking view on the entity's credit quality. Further, non-sharing of NDS by issuers may reflect operational issues faced by issuers in some cases. On the other hand, it may be a beginning of a general non-cooperation and may extend to non-submission of other information. Crisil Ratings believes that rating action on JVSBPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of JVSBPL migrated to 'Crisil B-/Stable Issuer not cooperating' Incorporated in January 2021, JVSBPL has recently set up an 80 KLPD grain-based ethanol plant that at Village Jatwar, Dist. Ambala, Haryana. The plant commenced operations in October 2023. JVSBPL is owned and managed by Mr. Jitender Jindal, Mr. Sunil Singla and Mr. Vinod Jindal. KOHINOOR CARPETS: CRISIL Reaffirms B+ Rating on INR1.15cr Loan -------------------------------------------------------------- Crisil Ratings has reaffirmed its 'Crisil B+/Stable/Crisil A4' ratings on the bank loan facilities of Kohinoor Carpets (KOHC) Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Bill Discounting 5.75 Crisil A4 (Reaffirmed) Cash Credit 0.1 Crisil B+/Stable (Reaffirmed) Packing Credit 8 Crisil A4 (Reaffirmed) Proposed Working Capital Facility 1.15 Crisil B+/Stable (Reaffirmed) The ratings continue to reflect the leveraged capital structure and large working capital requirement. These weaknesses are partially offset by the extensive experience of the proprietor in the industry. Analytical Approach Crisil Ratings has evaluated the standalone business and financial risk profiles of KOHC. Key Rating Drivers & Detailed Description Weaknesses: * Leveraged capital structure: The capital structure has improved but is likely to remain leveraged. The gearing and total outside liabilities to tangible net worth ratio are estimated at 3-4 times and 4-7 times, respectively, as on March 31, 2025, due to higher reliance in external debt. Net worth is estimated to have remained moderate at INR9-10 crore as on the same date. Repayment of debt and low reliance on external borrowings should help these parameters improve but will remain monitorable. * Large working capital requirement: Gross current assets remained high at over 400 days for fiscal 2025, driven by stretched receivables and large inventory. Orders are received 2-3 months in advance from the customers, and around three months are required to produce the goods. Realisation of receivables from overseas buyers takes 80-140 days from the date of dispatch. Furthermore, to maintain strong product quality and ensure uninterrupted production, the firm holds sufficient machinery and inventory of cotton yarn, polyester, and woolen yarn etc. As a result of large working capital requirements, firm's reliance on bank lines also remain high, evinced by average bank utilisation of 92% during past 12 months through March 2025. While the firm is able to extend its creditor support, going forward, efficient management of working capital leading to lower reliance on bank line will remain a key monitorable. Strength: * Extensive experience of the proprietor: The proprietor has been engaged in the home furnishing business for over three decades and has maintained healthy relationships with suppliers and customers in the US, the UK and Australia. Leading customers include Winners Merchants International LP, Canada, and HomeGoods. The firm now plans to start exporting to Italy and Germany as well. The installation of the new automated bathmat manufacturing machinery will also support growth in the topline over the medium term by increasing efficiency and thereby reducing costs. Crisil believes that the proprietor experience in the industry will continue to aid the business risk profile of the firm over the medium term as well. Liquidity: Poor Bank limit utilisation was high at 92% on average in the past 12 months. Annual cash accrual is expected to be over INR1.6-2 crore against yearly term debt obligation of INR1.3-1.6 crore over the medium term. The current ratio was healthy at 1.2 times as on March31, 2025. The promoters will extend support via equity and unsecured loans to cover the working capital requirement and debt obligation. Outlook: Stable Crisil Ratings believes KOHC will continue to benefit from the extensive experience of its proprietor in the home furnishing industry and healthy relationships with clients. Rating sensitivity factors Upward factors: * Steady growth in revenue and stable operating margin, leading to higher-than-expected net cash accrual of more than INR2 crores. * Efficient management of working capital leading to lower reliance on external debt and thus an improved financial risk profile and liquidity. Downward factors: * Decline in revenue, leading to net cash accrual below INR0.5 crore. * Any large, debt-funded capex or high reliance on external debt for working capital requirement, weakening the capital structure. KOHC was set up in 1988, as a proprietorship firm by Mr. Ram Chander Chutani. The firm manufactures cotton rugs, bathmats, carpets, cotton puffs, polar blankets, benches and various home furnishings. Its facilities are in Panipat and Karnal in Haryana. The firm derives around 90% of its revenue from exports, with the US, the UK and Australia being key markets. LANCO VIDARBHA: CARE Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Lanco Vidarbha Thermal Power Limited (LVTPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 9,614.00 CARE D; ISSUER NOT COOPERATING Facilities Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Ltd. had, vide its press release dated April 18, 2024, placed the rating(s) of LVTPL under the 'issuer non-cooperating' category as LVTPL had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. LVTPL continues to be non-cooperative despite repeated requests for submission of information through e-mails dated March 4, 2025, March 14, 2025 and March 24, 2025 among others. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Analytical approach: Standalone Outlook: Not Applicable Lanco Vidarbha Thermal Power Limited (LVTPL) is promoted by Lanco Group and was incorporated on 23rd February 2005. The company was initially incorporated as a 'Private limited' company and later converted into a 'Public Limited' company on May 10, 2010. LVTPL is promoted to develop, construct, own and operate a 1,320 MW (2x660 MW) thermal power plant at Mandva village in Wardha District, Maharashtra. The project is being implemented on super critical technology by way of a turnkey Engineering, Procurement & Construction (EPC) contract with an initial estimated project cost of INR10,433 crore, to be financed at a debt to equity ratio of 4:1, The debt portion of INR5,549 crore was tied up with the lenders. MANDOVI CASTING: CRISIL Withdraws B+ Rating on INR7cr Cash Loan --------------------------------------------------------------- Crisil Ratings has downgraded its ratings on the bank facilities of Mandovi Casting Pvt Ltd (MCPL) to 'Crisil B+/Stable/Crisil A4' from 'Crisil BB/Stable/Crisil A4+' and subsequently withdrawn the ratings at the company's request and on receipt of no-objection certificate from its bankers. This is in line with the Crisil Ratings policy on withdrawal of bank loan ratings. Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 7 Crisil B+/Stable (Rating Downgraded and Withdrawn) Letter of Guarantee 0.31 Crisil B+/Stable (Rating Downgraded and Withdrawn) The company has discontinued its operations from Nov-24 with regard to falling revenue and margins with company booking INR54 crore of revenue with operating loss in Fiscal 25 where the management decided upon to discontinue the operations and liquidate the assets. Analytical Approach For arriving at the rating, Crisil ratings has revised its analytical approach and considered standalone profile of business and financial of MCPL. Earlier, they had combined the business and financial risk profile of MCPL and MSIPL collectively referred to as the Mohit group to arrive at group ratings. The revision is based on the revised stance of the management. Key Rating Drivers & Detailed Description Strength: * Extensive experience of the promoters: The promoters have more than two decades of experience in the steel products industry; their strong understanding of market dynamics and healthy relationships with suppliers and customers should continue to support the business. The group has moderately integrated operations with capacities for power and billets, which aids the overall business risk profile. Weaknesses: * Exposure to volatility in steel prices: Since cost of procuring the key raw materials (sponge iron and iron ore and scrap) accounts for a bulk of production cost, even a slight variation in price can drastically impact the operating margin. Changes in government regulations also affect revenue and profitability. * Susceptibility to intense competition and cyclicality in the steel industry: The steel industry is highly fragmented, leading to high competition. Furthermore, since demand for steel is closely linked to economic activity, players are susceptible to cyclicality in demand and fluctuations in realisations; thus, revenue has fluctuated over the past three years. Further, government policies in relation to import also play a vital role for domestic players. The group had incurred losses in the past due to pressure on realisations and weak demand. Liquidity: Streched Bank limit utilization is around 20 to 40% lakhs for last 4 months ending April 25 with drawing power been reduced to INR10 lakhs by the bank from INR7 crore earlier. Outlook: Stable MCPL benefits from the extensive experience of its promoters. Rating sensitivity factors Upward factors: * Substantial and sustainable increase in revenue and operating margin, resulting in cash accrual more than INR1.5 crore * Maintenance of adequate debt protection metrics and liquidity Downward factors: * Steep decline in revenue or operating profitability, leading to annual cash accrual less than INR0.5 crore * Any large, debt-funded capital expenditure or a sizeable stretch in the working capital cycle MCPL was incorporated in 1996. The companies manufacture billets (combined capacity of 89,500 tonne) and also have a captive power plant. Mr. Sandeep Agarwal and his family members are the promoters. The company is based in Goa. MARUTI TRADING: CRISIL Moves C Debt Ratings to Not Cooperating -------------------------------------------------------------- CRISIL Ratings has migrated the ratings on certain bank facilities of Maruti Trading Company-Rajkot (MTCR), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 0.99 Crisil C (Issuer Not Cooperating; Rating Migrated) Proposed Fund- Based Bank Limits 13.02 Crisil C (Issuer Not Cooperating; Rating Migrated) Term Loan 0.99 Crisil C (Issuer Not Cooperating; Rating Migrated) Crisil Ratings has been consistently following up with MTCR for obtaining NDS through letters/emails dated February 28, 2025, March 28, 2025 and April 30, 2025 among others, apart from telephonic communication to seek the same. After non-receipt of NDS for 2 consecutive months, we also sent a letter dated April 22, 2025 reminding the issuer to share the NDS. However, the issuer has remained non cooperative. Crisil Ratings has also tried to reach out to the lenders of MTCR to confirm timely debt servicing during these months, but awaits any feedback. '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 NDSs from MTCR, which restricts Crisil Ratings' ability to take a forward looking view on the entity's credit quality. Further, non-sharing of NDS by issuers may reflect operational issues faced by issuers in some cases. On the other hand, it may be a beginning of a general non-cooperation and may extend to non-submission of other information. Crisil Ratings believes that rating action on MTCR is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of MTCR migrated to 'Crisil C Issuer not cooperating' MTCR was established in 1986. It trades in/exports various products such as Abil Kanku, compartment plates, cotton grey cloth and printed fabrics, safety matchsticks, food containers, pharmaceuticals, jaggery, snacks and paper. MTCR is owned and managed by Mr. Sanjaybhai K Limbasiya and Mr. Kaushikkumar V Ukani. NAGARJUNA STEEL: CARE Keeps B- Debt Rating in Not Cooperating ------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Nagarjuna Steel (NS) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term 5.00 CARE B-; Stable; ISSUER NOT Bank Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Ltd. had, vide its press release dated April 17, 2024, placed the rating(s) of NS under the 'issuer non-cooperating' category as NS had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. NS continues to be non-cooperative despite repeated requests for submission of information through e-mails dated March 3, 2025, March 13, 2025, March 23, 2025 among others. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Analytical approach: Standalone Outlook: Stable Hyderabad-based, Nagarjuna Steel (NS) was established in 2016, by Mr. P. Mahendar Reddy (Managing Partner) and Mr. P. Ravi Shankar Reddy. The firm initiated its business operations in July 2016 and is currently engaged in the trading of construction materials (TMT Steel bar and Cement). The firm is a Wholesale Dealer of Rashtriya Ispat Nigam Limited (Vizag Steel), Kamdhenu Ispat Limited, Jai Raj Ispat Limited, Kamini metalliks Private Limited and others in Telangana and Andhra Pradesh regions. The firm derives 70% of the revenue from the sale of TMT Steel bar and the balance 30% from the sale of cement. SAI POULTRY: CARE Keeps B- Debt Rating in Not Cooperating Category ------------------------------------------------------------------ CARE Ratings said the rating for the bank facilities of Sai Poultry Farm (Ananthavaram) (SPFA) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term 3.50 CARE B-; Stable; ISSUER NOT Bank Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Ltd. had, vide its press release dated April 17, 2024, placed the rating(s) of SPFA under the 'issuer non-cooperating' category as SPFA had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. SPFA continues to be non-cooperative despite repeated requests for submission of information through e-mails dated March 3, 2025, March 13, 2025, March 23, 2025 among others. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Analytical approach: Standalone Outlook: Stable Andhra Pradesh based, Sai Poultry Farm (Ananthavaram) (SPFA), was established in 2008 as a proprietorship firm by Mr. B. Sudhakarrao. The firm is engaged in farming of egg laying poultry birds (chickens) and trading of eggs and cull birds and its registered office is at Mylavaram Mandal, Krishna District with installed capacity of 124000 number of birds per annum. The day to day operations of the firm are managed by Mr. B. Sudhakarrao. The firm purchases its raw material like maize, medicines in Krishna district. The firm trades eggs to Jai Mahankali Traders. SHAH AGENCIES: CRISIL Moves B+ Debt Ratings to Not Cooperating -------------------------------------------------------------- CRISIL Ratings has migrated the ratings on certain bank facilities of Shah Agencies (SA), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Cash Credit 25 CRISIL B+/Stable (Issuer Not Cooperating; Rating Migrated) Proposed Long Term 15 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Migrated) Crisil Ratings has been consistently following up with SA for obtaining NDS through letters/emails dated February 28, 2025, March 28, 2025 and April 30, 2025 among others, apart from telephonic communication to seek the same. After non-receipt of NDS for 2 consecutive months, we also sent a letter dated April 22, 2025 reminding the issuer to share the NDS. However, the issuer has remained non cooperative. Crisil Ratings has also tried to reach out to the lenders of SA to confirm timely debt servicing during these months, but awaits any feedback. '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 NDSs from SA, which restricts Crisil Ratings' ability to take a forward looking view on the entity's credit quality. Further, non-sharing of NDS by issuers may reflect operational issues faced by issuers in some cases. On the other hand, it may be a beginning of a general non-cooperation and may extend to non-submission of other information. Crisil Ratings believes that rating action on SA is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on bank facilities of SA migrated to 'Crisil B+/Stable Issuer not cooperating'. SA, set up in 2003, trades in pulses such as fox gram, horse gram, moth beans and urad dal. The Salem based firm is owned and managed by Mr. Bharat P Shah, Mr. Nitin P Shah, Mr. Rajesh H Shah, Mr. Yatin B Shah and Mr. Karan R Shah. SHRIRAM FINANCE: Fitch Hikes Long-Term IDR to 'BB+', Outlook Stable ------------------------------------------------------------------- Fitch Ratings has upgraded India-based Shriram Finance Limited's (SFL) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'BB+', from 'BB'. The Outlook is Stable. Key Rating Drivers Improved Credit Profile: The upgrade reflects sustained improvement in SFL's standalone profile in recent years, particularly in funding diversity, risk management, portfolio quality and profitability. SFL has demonstrated steady performance since merging with its sister company, Shriram City Union Finance Limited (SCUF), in 2022. The ratings also reflect SFL's time-tested and established franchise in used commercial-vehicle financing, seasoned management team, established risk controls and adequate balance-sheet buffers. Supportive Operating Environment: India's robust medium-term growth potential and large, diversified economy should continue to support non-bank financial institutions' (NBFIs) business prospects and profitability in the medium term. More accommodative monetary policy should help to buffer the economy against rising global trade uncertainty. Moreover, India's NBFIs are mostly domestically focused. Diversifying Lending Franchise: Vehicle lending is likely to remain the majority of SFL's loan portfolio (74% at end-FY25) in the medium term. Even so, additional loan products, such as small business, two-wheeler, personal and gold loans, introduced through the merger with SCUF, add diversity to SFL's portfolio. Fitch expects revenue and profit opportunities to expand gradually through cross-selling, while underwriting standards remain generally consistent as these products continue to be rolled out across SFL's branches nationwide. Strengthened Risk Profile: Fitch believes that SFL's loan management practices and risk controls have tightened in recent years, improving the company's ability to maintain asset quality and navigate macroeconomic shocks. Enhanced risk management and recovery practices have resulted in reduced delinquency rates and are likely to continue containing credit losses. Management's diversified funding strategy also mitigates liquidity risks. Sustained Asset Quality: Fitch expects asset quality to remain broadly steady in the medium term, supported by a generally resilient economy. SFL's non-performing loan (NPL) ratio has declined steadily, reaching 4.6% by FYE25 (FYE24: 5.2%; FYE18-FYE22 average: 8.1%). SFL has a higher-risk, non-prime borrower profile, but its risk practices, based on close borrower contact and careful vehicle collateral valuation, have helped contain credit losses to an average of 2.4% over FY22-FY25. Increased provision coverage of 123% of NPLs at FYE25 (FYE21: 95%) provides an added cushion against higher impairments. Improved Margin Profile: SFL's net interest margin (NIM) improved to 8.5% over FY25 (FY22: 6.9%), reflecting the addition of SCUF's higher-yielding product mix and the group's rural and semi-urban customer base. Fitch expects sustained credit demand and careful funding, operating and credit cost control to support earnings in the medium term. Normalised pretax profit/average assets of 4.2%-4.9% over FY23-FY25 (excluding the FY25 gain on sale of the housing finance subsidiary) exceeds the FY18-FY20 average of 3.8%. Steady Leverage: SFL's debt/tangible equity ratio was broadly stable at 4.6x at FYE25 (FYE24: 4.5x), and Fitch expects leverage to remain generally steady in the near term. This is based on loan growth targets of around 15% that Fitch expects to be supported largely by internal capital generation. Moreover, Fitch believes SFL's improved risk profile, portfolio quality and capital generation support its ability to tolerate slightly higher leverage. Improved Funding and Liquidity: SFL has diversified its funding channels over the past few years, with an expanded share of deposit funding (FYE25: 24%; FYE21: 15%) and generally consistent access to domestic and offshore bonds and loans. The funding profile is among the most diversified and balanced, by instrument type, across large Fitch-monitored Indian NBFIs, reducing SFL's reliance on domestic wholesale funding and improving its flexibility to source steadier and lower-cost funds. Meanwhile, SFL's improved access to longer-tenor funding in recent quarters indicates strengthening lender confidence in the company. The liquidity buffer - liquid assets/total assets - is moderate (FYE25: 10.9%; FYE24: 7.3%), but a well-matched asset-liability maturity profile underpins adequate liquidity inflows to meet short-term obligations. Fitch also regards SFL as better placed to weather liquidity shocks than many local peers due to its established and diversified funding relationships. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Ratings may be downgraded in the event of a significant deterioration in the operating environment or if there is a notable decline in asset quality and profitability, reduced or more concentrated funding access, or a deterioration in the liquidity profile. In addition, leverage persistently exceeding 5x, or a substantial rise in risk appetite characterised by aggressive growth in riskier segments relative to peers, could also exert downward pressure on the rating. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Positive action will be contingent on a significantly improved operating environment along with a material improvement in the business and risk profile, such that the impaired loan ratio and credit costs are significantly lower while maintaining adequate profitability, stable capitalisation and a well-balanced funding and liquidity profile. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The ratings on SFL's US dollar medium-term note (MTN) programme and foreign-currency senior secured debt are at the same level as its Long-Term Foreign-Currency IDR, in line with Fitch's rating criteria. Indian NBFI borrowings are typically secured, and Fitch believes that non-payment of their senior secured debt would best reflect an uncured failure of the entity. NBFIs can issue unsecured debt in overseas markets, but such debt is likely to constitute a small portion of their funding and thus cannot be viewed as their primary financial obligation. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The ratings on SFL's US dollar MTN programme and foreign-currency senior secured debt are sensitive to its Long-Term Foreign-Currency IDR. Any action on the Long-Term Foreign-Currency IDR will drive similar action on the MTN programme and foreign-currency senior secured debt ratings. ADJUSTMENTS The sector risk operating environment score has been assigned above the implied score for the following adjustment reasons: size and structure of economy (positive) and economic performance (positive). The asset quality score has been assigned above the implied score for the following adjustment reasons: loan charge-offs, depreciation or impairment policy (positive). The funding, liquidity and coverage score has been assigned above the implied score for the following adjustment reasons: funding flexibility (positive) and cash flow-generative business model (positive). ESG Considerations SFL has an ESG Relevance Score of '3' for Customer Welfare, compared with the standard score of '2' for the finance and leasing sector. This reflects its retail-focused operations, which exposes it to risks around fair-lending, pricing-transparency and repossession, foreclosure and collection practices. Aggressive practices in these areas may subject the company to legal, regulatory and reputational risk that may negatively affect its credit profile. The relevance score of '3' for this factor reflects Fitch's view that these risks are adequately managed and have a low impact on SFL's credit profile at present. 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 ----------- ------ ----- Shriram Finance Limited LT IDR BB+ Upgrade BB ST IDR B Affirmed B LC LT IDR BB+ Upgrade BB senior secured LT BB+ Upgrade BB SINGH TECHNOINFRA: CARE Keeps B- Debt Rating in Not Cooperating --------------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Singh TechnoInfra Private Limited (STPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term 6.50 CARE B-; Stable; ISSUER NOT Bank Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Ltd. had, vide its press release dated May 2, 2024, placed the rating(s) of STPL under the 'issuer non-cooperating' category as STPL had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. STPL continues to be non-cooperative despite repeated requests for submission of information through e-mails dated March 18, 2025, March 28, 2025 and April 7, 2025 among others. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Analytical approach: Standalone Outlook: Stable Singh Techno Infra Private Limited (STPL) was incorporated as a private limited company in May 2007. The company is currently being managed by Mr. Rajhans Hargovind Singh and Mrs. Sunita Singh. The company is engaged in civil construction which involves foundation work for industrial purposes and laying optical cables underground. The company also does maintenance and construction of building works mainly for government organizations. STPL executes contracts for government organizations as well as for private players. The services are provided all over India. The orders undertaken by the company are secured through the competitive bidding process. SONU MARKETING: CRISIL Moves B Debt Rating to Not Cooperating ------------------------------------------------------------- CRISIL Ratings has migrated the ratings on certain bank facilities of Sonu Marketing Private Limited (SMPL), as: Amount Facilities (INR Crore) Ratings ---------- ----------- ------- Non Convertible 50.0 CRISIL B/Stable (ISSUER NOT Debentures-LT COOPERATING; Rating Migrated) Crisil Ratings has been consistently following up with SMPL for obtaining NDS through letters/emails dated February 28, 2025, March 28, 2025 and April 30, 2025 among others, apart from telephonic communication to seek the same. After non-receipt of NDS for 2 consecutive months, we also sent a letter dated April 22, 2025 reminding the issuer to share the NDS. However, the issuer has remained non cooperative. Crisil Ratings has also tried to reach out to the lenders of SMPL to confirm timely debt servicing during these months, but awaits any feedback. '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 NDSs from SMPL, which restricts Crisil Ratings' ability to take a forward looking view on the entity's credit quality. Further, non-sharing of NDS by issuers may reflect operational issues faced by issuers in some cases. On the other hand, it may be a beginning of a general non-cooperation and may extend to non-submission of other information. Crisil Ratings believes that rating action on SMPL is consistent with 'Assessing Information Adequacy Risk'. Based on the last available information, the rating on Non Convertible Debentures of SMPL migrated to 'Crisil B/Stable Issuer not cooperating'. A, an RBI Registered NBFC, specializes in offering personal loans. In India, NBFCs constitute the fastest-growing sector within the financial and banking landscape. In response to the escalating demand for personal loans, the company has developed tailor-made solutions aimed at enhancing credit scores and providing swift access to funds for individuals in need. SS INNOVATIONS: Names Arvind Palaniappan Interim CFO ---------------------------------------------------- SS Innovations International, Inc. disclosed in a Form 8-K Report filed with the U.S. Securities and Exchange Commission that pursuant to a planned leadership transition, Anup Sethi stepped down as the Company's Chief Financial Officer effective April 30, 2025, and Arvind Palaniappan joined the Company as its Interim Chief Financial Officer, effective May 1, 2025. Dr. Sudhir Srivastava, Chairman of the Board and Chief Executive Officer of SS Innovations, commented, "We are pleased to appoint Arvind as the Interim CFO of SS Innovations. He is a seasoned financial and operations executive who brings us a wealth of accounting and financial management experience and expertise. We are confident in a seamless transition of responsibilities." Mr. Palaniappan, 59, who will serve as Interim Chief Financial Officer, is a Chartered Accountant with the Institute of Chartered Accountants, England and Wales. He has over 30 years of experience in accounting and financial management, risk and controls consulting, assurance and compliance and global business outsourcing process delivery. Since February 2020, M. Palaniappan has been the principal of Trogon Consulting, a private consulting firm providing outsourced chief financial officer and risk management services to private and public clients. From 2006 to 2020, he occupied a number of executive positions, including Managing Director (Senior Operations Executive) for Accenture Solutions in India, where he provided various financial, management and operational oversight services with respect to Accenture Solutions, Indian delivery centers. His prior affiliations included Axis Consulting Services (part of the Ambit – RSM Group) in Bangalore, Intel Technologies India in Bangalore and Arthur Andersen in New Delhi. Mr. Palaniappan holds Bachelors and Masters of Commerce degrees from The Madras Christian College. The Company and Trogon have entered into a one-year consulting agreement pursuant to which Mr. Palaniappan will provide chief financial officer services to SSi for a fee of approximately US$7,100 per month (based on current Indian Rupee to U.S. Dollar exchange rates). Dr. Srivastava continued, "On behalf of the Board of Directors and executive team, I want to thank Anup for his financial leadership and many contributions to SS Innovations over the past seven years, including most recently in the role of CFO. He helped build strong accounting and finance functions that drove the growth of our business, supported the launch of more than 80 surgical robotic systems in India and overseas, and allowed us to transition from a high growth start up to a publicly-traded company. We mutually agreed that the milestone of the uplisting of our common stock to Nasdaq on April 25 provided an opportune time to commence the CFO transition. We are grateful that Anup has agreed to be an advisor during this transition period and wish him all the best in his next endeavors." Since 2018, Mr. Sethi, has been with Sudhir Srivastava Innovations Pvt. Ltd., the Company's Indian operating subsidiary and became SSi's Chief Financial Officer following the acquisition by merger of SSI-India in April 2023. During his tenure. Mr. Sethi helped build strong accounting and finance functions for the Company that drove the growth of the Company's business, supported the commercial launch of the Company's SSi Mantra Surgical Robotic System, permitted the implementation of more than 80 surgical robotic systems in India and overseas, and allowed the Company to transition from a high growth start up to a publicly-traded company. The Company and Mr. Sethi mutually agreed that the milestone of the uplisting of the Company's common stock to Nasdaq on April 25 provided an opportune time to commence the Chief Financial Officer transition. Mr. Sethi will remain available to advise SSi in the transition to a new permanent Chief Financial Officer. The Company has commenced a search process to identify and recruit a new permanent Chief Financial Officer. About SS Innovations International SS Innovations International, Inc. (OTC: SSII) is a developer of innovative surgical robotic technologies headquartered in Gurugram, Haryana, India. The company's vision is to make robotic surgery benefits more affordable and accessible globally. SSII's product range includes its proprietary "SSi Mantra" surgical robotic system and "SSi Mudra," a broad array of surgical instruments for various procedures, including robotic cardiac surgery. The company plans to expand its presence with technologically advanced, user-friendly, and cost-effective surgical robotic solutions. Gurugram, India-based BDO India, LLP, the Company's auditor since 2024, issued a "going concern" qualification in its report dated April 15, 2025, attached to the Company's Annual Report on Form 10-K for the year ended December 31, 2024, citing that the Company has suffered recurring losses from operations and has negative cash flows from operating activities during the year ended December 31, 2024. The Company is dependent on further funding to meet its obligations to sustain its operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. As of Dec. 31, 2024, the Company had $42,385,213 in total assets, $28,928,110 in total liabilities, and a total stockholders' equity of $13,457,103. UNITON INFRA: CARE Keeps B- Debt Rating in Not Cooperating ---------------------------------------------------------- CARE Ratings said the rating for the bank facilities of Uniton Infra Private Limited (UIPL) continues to remain in the 'Issuer Not Cooperating' category. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term Bank 15.00 CARE B-; Stable; ISSUER NOT Facilities COOPERATING; Rating continues to remain under ISSUER NOT COOPERATING category Rationale and key rating drivers CARE Ratings Ltd. had, vide its press release dated April 30, 2024, placed the rating(s) of UIPL under the 'issuer non-cooperating' category as UIPL had failed to provide information for monitoring of the rating as agreed to in its Rating Agreement. UIPL continues to be non-cooperative despite repeated requests for submission of information through e-mails dated March 16, 2025, March 26, 2025, April 5, 2025 among others. In line with the extant SEBI guidelines, CARE Ratings Ltd. has reviewed the rating on the basis of the best available information which however, in CARE Ratings Ltd.'s opinion is not sufficient to arrive at a fair rating. Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating(s). Analytical approach: Standalone Outlook: Stable Uniton Infra Private Limited (UIPL) was incorporated in the year 2017 with its registered office at Banjara Hills, Hyderabad. The promoters of the company are Mr. Mahesh Bigala (Managing Director) and Mrs. Shalini Bigala (Director). They have experience of more than two decades in Construction Industry. The company is primarily engaged in construction of buildings, apartments and other infrastructure works. The company procures its work orders through online tenders from Greater Hyderabad Municipal Corporation (GHMC), Telangana. VODAFONE IDEA: Warns of Insolvency Risk Beyond FY26 Without Aid --------------------------------------------------------------- CNBC-TV18 reports that debt-ridden telecom service provider Vodafone Idea Ltd. has cautioned the government that without state support, it will have to approach the National Company Law Tribunal (NCLT) for insolvency, and will not be able to operate beyond the financial year 2025–26. According to CNBC-TV18, Vodafone Idea has warned that in the absence of government support, the value of the government's equity stake could fall to zero, resulting in no recovery on the INR1.18 lakh crore of spectrum dues. CNBC-TV18 relates that the financially stressed telco also claimed that it has not received support from banks despite a INR26,000 crore equity infusion and the government's equity conversion. CNBC-TV18 says Vodafone Idea told the government that without its support, bank funding will not progress, and the company will not be able to operate beyond FY26. If government support does not materialise and Vodafone Idea fails to pay its adjusted gross revenue (AGR) dues, the company will be forced to approach NCLT, a process that could be long drawn. If Vodafone Idea goes to NCLT, over 200 million subscribers could be impacted. A disruption in Vodafone Idea's network would have a cascading impact on other sectors and could set back the country's digital ambitions, CNBC-TV18 states. Following the equity conversion, Vodafone Idea still owes the government INR1.95 lakh crore in AGR and spectrum dues. Vodafone Idea had filed a fresh plea in the Supreme Court, seeking additional relief from its AGR dues, according to CNBC-TV18. It cited the earlier AGR judgment in its plea and is seeking a waiver of over INR30,000 crore in dues, specifically the penalty and interest on the penalty component of the AGR levy. CNBC-TV18 relates that the company argued that the government is "handicapped" in granting further relief due to constraints imposed by the AGR judgment. It further claimed that the government is now effectively a "partner" in the company, holding a 49% equity stake after converting AGR and spectrum dues into equity. Citing pain in the telecom sector, the telco claims that the sector will collapse without additional government support, CNBC-TV18 relays. The company has requested an urgent hearing on the matter scheduled for today, May 19. Vodafone Idea Limited operates as a telecom service provider. The Company offers 2G, 3G, and 4G mobile services, as well as mobile payments, advanced enterprise offerings, and entertainment. Vodafone Idea serves customers in India. ========= J A P A N ========= NISSAN MOTOR: Plans to Shut Plants in Japan, Mexico, Yomiuri Says ----------------------------------------------------------------- Reuters reports that Nissan Motor Co. is preparing plans to shut two car assembly plants in Japan and considering closing two factories in Mexico, as the automaker restructures, the Yomiuri newspaper reported on Saturday [May 17]. According to Reuters, Nissan said in a statement on its website that recent reports on the potential closure of certain plants were speculative and not based on any official information of the company. "At this time, we will not be providing further comments on this matter," Nissan said in the statement. "We are committed to maintaining transparency with our stakeholders and will communicate any relevant updates as necessary." Yomiuri said the factories in Japan that would be closed were the Oppama plant, where Nissan started production in 1961, and the Shonan plant operated by Nissan Shatai, in which Nissan is a 50% stakeholder, Reuters relays. Overseas, Nissan is considering ending production at plants in South Africa, India and Argentina, and closing two factories in Mexico, according to Yomiuri, citing unnamed sources. According to Reuters, Japan's third-biggest automaker unveiled sweeping new cost cuts earlier last week, saying it would reduce its workforce by around 15% and cut production plants to 10 from 17 globally as it seeks to push through a turnaround. In its statement on May 17, Nissan said it had previously announced it would consolidate production of Nissan Frontier and Navara pickups from Mexico and Argentina into a single production hub centralised around the Civac plant in Mexico, Reuters relays. It also said that it had announced in March that French alliance partner Renault would buy out its stake in their joint Indian business, Renault Nissan Automotive India Private Ltd. The domestic plant closures would mark Nissan's first since closing its Murayama factory in 2001, Yomiuri, as cited by Reuters, said. The Oppama plant has annual capacity of around 240,000 cars and employed about 3,900 workers as of end-October, Reuters discloses. In 2010, it became Nissan's first plant to start production of the Leaf, widely considered the world's first mass-market electric vehicle. The Shonan plant, which produces commercial vans, has an annual capacity of around 150,000 units and employs about 1,200 people, according to Yomiuri. About Nissan Motor Nissan Motor Co., Ltd. manufactures and distributes automobiles and related parts. The Company produces luxury cars, sports cars, commercial vehicles, and more. Nissan Motor markets its products worldwide. Fitch Ratings, in April 2025, downgraded Nissan Motor Co., Ltd.'s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) and senior unsecured rating to 'BB' from 'BB+'. The Outlook is Negative. Fitch has affirmed the Short-Term Foreign- and Local-Currency IDRs at 'B'. S&P Global Ratings, on March 7, 2025, lowered its long-term issuer credit ratings on Nissan Motor and its overseas subsidiaries to 'BB' and affirmed its short-term issuer credit ratings on each company at 'B'. The negative outlook reflects S&P's view that the company's creditworthiness may continue to deteriorate as a challenging operating environment hampers profitability improvement and free cash flow losses continue. Moody's Ratings, in February 2025, also downgraded to Ba1 from Baa3 the senior unsecured rating for Nissan Motor Co., Ltd. At the same time, Moody's have assigned a Ba1 corporate family rating and withdrawn the company's Baa3 issuer rating. Moody's have also maintained the negative rating outlook. TEPCO HOLDINGS: S&P Affirms 'BB+' LT ICR, Alters Outlook to Neg. ---------------------------------------------------------------- S&P Global Ratings revised its outlook on its long-term issuer credit rating on Tokyo Electric Power Co. Holdings Inc. (Tepco Holdings) down to negative from stable. S&P also affirmed its 'BB+' long-term issuer credit and senior secured ratings. S&P revised its outlook because it sees an over one-in-three chance that Tepco Holdings group will be unable to maintain cash flow generation at the level commensurate with our current ratings. The group's profitability is likely to come under strong pressure due to intense competition in the domestic electricity retail market. Uncertainty also persists over the early restart of the Kashiwazaki-Kariwa nuclear power plant. Furthermore, S&P sees a growing likelihood of the company's investments remaining high and its free cash flow staying significantly negative. We affirmed our ratings because we expect the company's profit and cash flow generation to improve in the next one to two years if the Kashiwazaki-Kariwa plant resumes operations. The rating affirmation also reflects our view that the company remains important to Japan's energy policy. Tepco Holdings recorded ordinary profit of JPY254.4 billion in fiscal 2024 (ended March 31, 2025). The company expects ordinary profit in fiscal 2025 to decline slightly, according to its fourth Comprehensive Special Business Plan, which was updated on March 17, 2025. The group had previously intended to draft a fifth special business plan. Tepco Holdings' plan states ordinary profit for fiscal 2025 will include about JPY100 billion from operation of one of the Kashiwazaki-Kariwa nuclear reactors throughout the year. Therefore, no restart would likely mean profit falling far short of its forecast. S&P estimates it will take at least one to two years for the Kashiwazaki-Kariwa nuclear power plant to resume operations. It has been offline for many years, and a restart would require the consent of locals. The group postponed replacing its business plan amid uncertainty over the restart of the plant. In the Japanese retail electricity market, new entrants' share in Tepco Holdings' operating area fell to 25.2% in November 2023 but rebounded to 30.4% in January 2025. S&P believes that this momentum for newer energy companies will put strong pressure on profitability of the group's retail business. Competition in the domestic electricity retail environment had eased for a while due to a fuel price hike. S&P also assumes the intense competition will revive as other major electric power companies have become increasingly aggressive in expanding retail business outside of their home operating areas. As well as improving its bottom line, it is important for Tepco Holdings to eliminate its free cash flow deficit. Doing so would allow it to continue to receive support from the Japanese government and the financial institutions with which it deals. It would also allow the group to continue stably raising funds from the corporate bond market. Thus, cash flow is key to the group maintaining its creditworthiness, in S&P's view. S&P expects the group's free cash flow to remain negative. This is because the group needs to spend about JPY800 billion-JPY900 billion annually in the next two to three years. Costs for renewing its power transmission and distribution network and decarbonization capital expenditures including nuclear safety investments remain high. Accordingly, the group's free cash flow, which is operating cash flow minus investment cash flow, is likely to remain negative. It was negative JPY497.9 billion in fiscal 2024. S&P said, "We expect the high likelihood of extraordinary support from the Japanese government to continue to underpin the group's creditworthiness. Our issuer credit rating on Tepco Holdings incorporates three notches of uplift from our stand-alone credit profile on the group, reflecting strong prospects of extraordinary support from the government." The government has consistently supported the group since taking a majority stake in the group in July 2012 through the state-instituted Nuclear Damage Compensation and Decommissioning Facilitation Corp. Support has taken the form of managerial involvement and financial assistance for the cleanup at the Fukushima No. 1 nuclear power plant and related compensation costs. S&P said, "The negative outlook reflects our view of an over one-in-three chance that Tepco Holdings group will be unable to maintain profit generation at the level commensurate with our current ratings. The outlook also incorporates our view that the group's free cash flow is likely to remain deeply negative because of its continued high level of investment." S&P may consider a downgrade if it sees a heightened likelihood of either of the following scenarios in the next six to 12 months: -- The group's ordinary profit in fiscal 2025 being markedly below JPY200 billion because of a decline in profitability in its electricity retail sales operations; -- While free cash flow remains negative, the group's funding becoming unstable due to an inability to issue public bonds as planned, or if S&P sees a heightened likelihood of it being unable to borrow additional bank loans; or -- Further delay in updating its Comprehensive Special Business Plan and weakening support from the Japanese government. Conversely, S&P may consider revising the outlook up to stable if it sees a heightened likelihood of both of the following scenarios: -- The company's ordinary profit remaining steady above JPY200 billion due to a restart of the Kashiwazaki-Kariwa plant, or profitability in the electricity retail business stabilizing; and -- Continued support from the government and creditor financial institutions based on its Comprehensive Special Business Plan, which has been regularly revised since the Fukushima plant accident in 2011. S&P will also consider revising the outlook to stable if the likelihood of the government's extraordinary support grows further. Ratings List Ratings Affirmed Tokyo Electric Power Co. Holdings Inc. Senior Secured BB+ Ratings Affirmed; CreditWatch/Outlook Action To From Tokyo Electric Power Co. Holdings Inc. Issuer Credit Rating BB+/Negative/NR BB+/Stable/NR ======= L A O S ======= XAYABURI POWER: Fitch Rates Thai Baht Debentures 'B+(EXP)' ---------------------------------------------------------- Fitch Ratings has assigned Laos-based Xayaburi Power Company Limited's (XPCL, B+/Stable) proposed Thai baht senior unsecured debentures due 2030 an expected rating of 'B+(EXP)'. The Outlook is Stable. The final rating is contingent upon the receipt by Fitch of final documents conforming to information already received as well as the final pricing and financial close on the proposed debentures. RATING RATIONALE The proposed debentures will be issued by XPCL directly, and the proceeds will be used to refinance the existing Thai baht debentures issued in 2022 at the XPCL level. The proposed debenture holders will rank senior in nature, similar to the existing unsecured fixed-rate Thai baht debentures with bullet payments as well as fully amortising floating-rate secured bank loans issued in US dollars and Thai baht. The refinancing risk at the maturity of the proposed debentures from 2028 to 2030 will be alleviated by the long remaining tenor of the asset's concession period and XPCL's access to banks. XPCL's ratings reflect its credit quality assessment of the hydropower project, which started operation in 2019 and benefits from long-term fixed-price offtake agreements with Electricity Generating Authority of Thailand (EGAT, BBB+/Stable) and Electricite du Laos (EDL). Project cash flow is exposed to hydrology risk in the absence of availability-based payments. At the same time, XPCL's ratings are constrained by the limited hydrological data available for the project. Fitch assesses the ratings better than its internal assessment of the Laos sovereign's credit profile and country ceiling, as the project's structural features mitigate the country, transfer and convertibility risks associated with operating in Laos. These include XPCL's run-of-the-river nature and primary transmission line that connects to Thailand's grid. The line evacuates the majority of the power generated, reducing operational risk from local conditions in Laos. The project's proven, low-complexity technology also minimises labour intensity. The concession agreement approved by Laos shields XPCL from regulatory risk arising from changes in laws, including compensation for adverse economic impacts. It also mitigates transfer and convertibility risk by allowing XPCL to hold offshore bank accounts in Thailand for all revenue and debt repayments in both US dollars and Thai baht. These measures limit exposure to changes in foreign-currency regulations in Laos. However, any change in its internal assessment of Laos's credit profile could still affect debentures' ratings. Fitch believes EDL's interest in the hydropower project, through its indirect 20% shareholding in XPCL, is aligned with the power sector's strategic importance to Laos. Power exports to Thailand are the country's largest source of export revenue and Laos has a memorandum of understanding with Thailand to supply 10,500MW of power, including XPCL's project. KEY RATING DRIVERS Established In-House O&M Team - Operation Risk: Midrange XPCL utilises conventional, commercially proven technology and has been operational for about 5.5 years. A dedicated in-house team oversees routine maintenance, while operations and maintenance (O&M) is supported by technical advisors and the engineering team at CK Power Public Company, XPCL's parent. The plant is well-maintained and consistently delivers reliable performance. Fitch believes the availability of replacement contractors is facilitated by the presence of multiple plants along the Mekong River. XPCL manages and reviews its spare parts inventory annually. In addition, a major maintenance reserve account is kept for major overhauls that are scheduled every 12 years. However, its factor assessment is limited to 'Midrange', because operating cost forecasts have not been validated by an independent technical advisor. XPCL holds comprehensive insurance policies that cover losses from property damage and business interruption. Limited Operating History, Hydrology Risk - Revenue Risk, Volume: Midrange XPCL's energy generation and revenue are reliant on the Mekong River's water flow, with no payments from offtakers for plant availability during periods of lower flow. XPCL has projected hydrology internally since it commenced operation in 2019, using actual data from 2009 that reflects the stabilising effect of upstream Chinese dams, which help maintain water flow during the dry season. The original hydrology study benefited from extensive historical data, but did not account for the effects of upstream Chinese dams. Hydrology risk is partially alleviated by power purchase agreement (PPA) provisions that allow XPCL to designate a low hydrology year as a "drought year" once every 15 years, and by a provision to carry forward surplus energy generated beyond committed levels for up to 10 years. Fixed Tariff, Long-Term PPAs - Revenue Risk, Price: Stronger XPCL contracts its entire capacity through long-term PPAs with EGAT and EDL, shielding the project from merchant price volatility. The tariff structure lacks inflation protection, but the EGAT PPA tariffs are in US dollars and Thai baht for the primary energy component, offering a natural hedge against XPCL's US dollar bank loans. Energy payments under the EDL PPA use a fixed Thai baht tariff. Bullet-Payment, Medium-Term Debentures - Debt Structure: Midrange The proposed fixed-rate debentures will be issued in three separate tranches, with maturities of three, four and five years, scheduled for repayment between 2028 and 2030. These debentures will be Thai baht-denominated and will be unsecured, similar to the existing debentures in Thai baht. They will be supported by a debt service reserve account and a joint waterfall mechanism shared with other debts. The proposed debentures will also include a restrictive financial covenant concerning the debt/equity ratio. The refinancing risk for these debentures is lessened by XPCL's bank access and a lengthy tail period of about 17 years until the PPAs reach maturity. XPCL's consolidated debt structure primarily comprises fully amortising, floating-rate secured bank loans in US dollars and Thai baht, alongside unsecured, fixed-rate Thai baht debentures with bullet payments. Financial Profile Fitch assumes XPCL will issue debentures during 2025-2027 to refinance its current debentures issued in 2022 and 2023, with the new debentures to be repaid by 2032. Its base case includes yearly maximum gross electricity generation based on the company's estimate, stressed by 2.5% for the EGAT portion. Fitch also incorporates higher insurance premiums and interest rates, in line with XPCL's estimates, on the new debentures to be issued during 2025-2027. The debt-service coverage ratio (DSCR) averages 1.20x under its base case over the debt repayment period from 2025 to 2032. Its rating case stresses the yearly maximum gross electricity generation by 5.0% for the EGAT portion and a similar 50% stress for the energy-related EDL portion, in addition to a 5% stress on O&M and major maintenance expenses. The DSCR averages 1.15x over 2025-2032. The credit metrics remain comfortable at the current rating level even in a stress scenario, assuming no revenue accruing from EDL. PEER GROUP XPCL can be compared with JSW Hydro Energy Limited (senior secured rating: BB+/Stable). JSW Hydro operates two run-of-the-river hydropower projects: its 1,091MW Karcham Wangtoo plant on the Satluj River and 300MW Baspa II plant on the Baspa River, both located in the state of Himachal Pradesh, India. Fitch assesses volume risk at JSW Hydro as 'Stronger', owing to its regulated business model that ensures medium-term profitability if its projects remain available, regardless of actual off-take. In contrast, XPCL faces hydrology risk, restricting its volume risk assessment to 'Midrange'. JSW Hydro's rating case DSCR is 1.77x, against 1.15x for XPCL. Despite JSW Hydro's robust financial profile, its rating is constrained by uncertainty around the terms of future debt refinancing and systemic risk from its exposure to state-owned power-distribution companies, justifying a three-notch rating difference with XPCL. XPCL can also be compared with the financing vehicle, Clean Renewable Power (Mauritius) Pte. Ltd (CRP, senior secured rating: BB-/Stable), wholly owned by Hero Future Energies Asia Pte. Ltd. CRP's renewable energy portfolio includes wind (46%) and solar (54%) projects. Its rating case DSCR stands at 1.29x. A portion of CRP's revenue is derived from Indian state-owned distribution companies. This could cause liquidity pressure and justifies the one-notch rating difference with XPCL. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Annual average DSCR persistently falling below 1.10x; - Any significant adverse changes to Fitch's internal evaluation of Laos's country ceiling. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A longer operating record that provides greater assurance on the project's hydrology, combined with annual average DSCR exceeding 1.15x on a sustained basis and no increased exposure to Laos's local conditions or transfer and convertibility risk. TRANSACTION SUMMARY XPCL intends to issue new debentures totalling the equivalent of THB4,000 million to refinance a portion of the existing Thai baht debentures that were issued in 2022. The new fixed-rate unsecured debentures will be issued in three tranches with maturities of three, four and five years, set to mature in 2028, 2029, and 2030, respectively. ESG Considerations 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 ----------- ------ Xayaburi Power Company Limited Xayaburi Power Company Limited/ Debentures/1 LT B+(EXP) Expected Rating =============== M A L A Y S I A =============== SAPURA ENERGY: Announces Regularisation Plan to Exit PN17 Status ---------------------------------------------------------------- The Sun reports that Sapura Energy Bhd (SEB) on May 14 announced its regularisation plan aimed at facilitating the group's exit from Practice Note 17 (PN17) status and putting it back on a stronger financial and operational standing. The Sun relates that the final plan, expected to be submitted to Bursa Malaysia later this month, includes a debt restructuring exercise to resolve about MYR12.1 billion in total borrowings and trade liabilities and a capital reconstruction to set off against the group's accumulated losses. According to the Sun, Group CEO Muhammad Zamri Jusoh said implementation of the regularisation plan, together with the continued focus on its core businesses in engineering and construction, drilling, and operations and maintenance, represents the most viable pathway to turn around the group's financial condition. "We are confident the successful execution of the plan will return the group to profitability and restore confidence among stakeholders," the reprot quotes Jusoh as saying in a statement filed with Bursa Malaysia on May 13. In financial years 2022, 2023 and 2024, the external auditors highlighted a material uncertainty related to going concern in the financial statements of both the group and the company, the report notes. The Sun relates that the uncertainty was tied to several key factors, including the need to extend restraining orders, secure favourable outcomes in legal claims related to terminated engineering and construction projects, and successfully implement the proposed schemes of arrangement with at least 75% approval from relevant scheme creditors during court-convened meetings. Over the years, SEB has managed to achieve these critical milestones, allowing the group to move forward with finalising its regularisation plan. In the filing with Bursa Malaysia, the SEB board stated its confidence in the group's forward path, noting that the successful delivery of key restructuring actions provides a strong foundation for completing the plan, the Sun relays. The FY25 audited financial statements will be included in SEB's annual report, expected to be published by May 31. The Sun adds that SEB said the regularisation plan represents the culmination of the group's turnaround strategy, which began following its classification as a PN17 issuer in 2022. With help from its board restructuring task force, the group put into action a reset plan based on three main goals – improve its financial health by cutting down on unmanageable debt and paying off old bills; boost efficiency by carefully managing projects, improving risk management and focusing on what it does best; and promote future growth by changing its businesses to offer solutions, including support for global energy transition. Under the reset plan, SEB implemented a multipronged strategy to stabilise its global operations, which were severely affected by the Covid-19 pandemic, the Sun says. A key focus was on strengthening bidding and project delivery capabilities, prioritising margin preservation and enhancing financial discipline to support healthy cash flow. About Sapura Energy Sapura Energy Berhad, formerly SapuraKencana Petroleum Berhad, is engaged in investment holding and the provision of management services to its subsidiaries. The Company's segments include Engineering and Construction (E&C), Drilling, Energy and Corporate. Sapura Energy Bhd announced on May 31, 2022, that it has been classified as a PN17 listed issuer due to going concerns on its shareholders' equity position less than 50% of its share capital. Sapura Energy has become an affected listed issuer under PN17 on the basis that its shareholders' equity position of MYR85 million as at Jan. 31, 2022 was less than 50% of its share capital of MYR10.9 billion. SARAWAK CABLE: Shareholder Opposes Lawsuit vs. Unit's Liquidators ----------------------------------------------------------------- The Edge Malaysia reports that Sarawak Cable Bhd board member and major shareholder Datuk Seri Mahmud Abu Bekir Taib was not aware of and does not support the board's decision to sue Leader Cable Industry Bhd's (LCIB) liquidators for alleged negligence in handling asset sales, according to an email sighted by The Edge. LCIB is a subsidiary of Sarawak Cable. Earlier this month, Sarawak Cable, under interim judicial management, said in a bourse filing that its board had informed LCIB's liquidators - Khoo Siew Kiat and Goh Hua Yang from Messrs Deloitte Restructuring Services PLT - of plans to start legal action, The Edge relates. Mahmud Abu Bekir, formerly Sarawak Cable's chairman, became a non-executive director on Oct 28, 2024. As of January 2024, he holds a 12.1% direct and 6.5% indirect stake in the company. An email from Mahmud Abu Bekir's lawyer to LCIB's court-appointed liquidators sought to distance him from the board's action to sue, stating "our client was neither aware of that decision to commence legal proceedings nor does he support the same," the Edge relays. In the email, his lawyer also claimed the board is influenced by people connected to UK-based Serendib Capital Ltd. Serendib, which was initially seen as a white knight for the financially struggling Sarawak Cable, is now suing the company, Mahmud Abu Bekir, and six other directors. The lawsuit accuses them of conspiring to harm the company, according to The Edge. "Although our client is a major shareholder, his options are limited with the appointment of the interim judicial manager. In this regard, our client has applied to intervene in the judicial management proceedings with a view to opposing the application," the email read. A source confirmed this information. Sarawak Cable, a Practice Note 17 company since September 2022, was placed under interim judicial management in July 2024. This followed an application by law firm Messrs Krish Maniam & Co, which claimed unpaid legal fees. An interim judicial manager is appointed by the court to oversee the company, protect creditors, and help stabilise or restructure the business to avoid closure. Mahmud Abu Bekir has applied to intervene in the court's decision to place Sarawak Cable under interim judicial management. In his affidavit sighted by The Edge, he claims the law firm Messrs Krish Maniam still has "delusional hope" that Serendib can rescue the company. His application will be heard on June 20, 2025. In the latest development on Serendib's suit against Sarawak Cable and its directors, Mahmud Abu Bekir had successfully obtained a court order for Serendib Capital to produce MYR200,000 security costs to cover the legal proceedings should the company, as the plaintiff, lose, The Edge reports. The sum is to be deposited within 14 days of the Kuala Lumpur High Court order on May 13. About Sarawak Cable Malaysian-based Sarawak Cable Bhd manufactures cables and wires. It operates in four segments The Sale of power cables and conductors segment supplies power cables and conductors components, sale of galvanized steel products, and steel structures segment supplies galvanized steel products and steel structures and galvanizing services. The transmission lines construction segment involves supply, installation, and commissioning of transmission line projects. And the corporate segment is involved in Group-level corporate and management services. In September 2022, Sarawak Cable Bhd said it triggered the criteria of a Practice Note 17 (PN17) company following a disclaimer of opinion expressed by its external auditor. It said it is in the midst of formulating a regularisation plan to address the PN17 status. On July 10, 2024, Sarawak Cable Berhad confirmed it received an Originating Summons filed in the Kuala Lumpur High Court on July 9, 2024 from the solicitors acting on behalf of Messrs. Krish Maniam & Co to place the company under judicial management. At the hearing held on July 9, 2024, the High Court judge has allowed the application for the company to be placed under interim judicial management pursuant to Section 405 of the Companies Act 2016 and that Lim Sin Han of Messrs Sin Han & Co. be appointed as the Judicial Manager of the Company. ===================== N E W Z E A L A N D ===================== BBK HORTICULTURE: Creditors' Proofs of Debt Due on June 15 ---------------------------------------------------------- Creditors of BBK Horticulture Limited and Grafton Property Limited are required to file their proofs of debt by June 15, 2025, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 5, 2025. The company's liquidators are: Daran Nair Heiko Draht Nair Draht Limited 97 Great South Road Epsom Auckland 1051 EXPRESS ENGINEERING: Creditors' Proofs of Debt Due on June 10 ------------------------------------------------------------- Creditors of Express Engineering Limited are required to file their proofs of debt by June 10, 2025, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 10, 2025. The company's liquidator is: Brenton Hunt PO Box 13400 City East Christchurch 8141 OPEN SEASON: Creditors' Proofs of Debt Due on June 11 ----------------------------------------------------- Creditors of Open Season Investments Limited are required to file their proofs of debt by June 11, 2025, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 13, 2025. The company's liquidators are: Steven Khov Kieran Jones Khov Jones Limited PO Box 302261 North Harbour Auckland 0751 SHIRES LIMITED: Court to Hear Wind-Up Petition on May 30 -------------------------------------------------------- A petition to wind up the operations of The Shires Limited will be heard before the High Court at Auckland on May 30, 2025, at 10:00 a.m. The Commissioner of Inland Revenue filed the petition against the company on March 27, 2025. The Petitioner's solicitor is: Cloete Van Der Merwe Inland Revenue, Legal Services 5 Osterley Way Manukau City Auckland 2104 SUSTAINABLE GREEN: Court to Hear Wind-Up Petition on May 22 ----------------------------------------------------------- A petition to wind up the operations of Sustainable Green Developments Limited will be heard before the High Court at Auckland on May 22, 2025, at 10:45 a.m. Anderson Lloyd filed the petition against the company on Feb. 26, 2025. The Petitioner's solicitor is: Simon Munro Anderson Lloyd Floor 2, The Regent Building 33 Cathedral Square Christchurch 8011 ================= S I N G A P O R E ================= BROADWAY SYSTEMS: Creditors' Proofs of Debt Due on May 30 --------------------------------------------------------- Creditors of Broadway Systems and Technology Pte. Ltd. are required to file their proofs of debt by May 30, 2025, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 30, 2025. The company's liquidators are: Jason Aleksander Kardachi Kroll Pte. Limited c/o 10 Collyer Quay #05-04/05 Ocean Financial Centre Singapore 049315 EON REALITY: Court to Hear Wind-Up Petition on May 23 ----------------------------------------------------- A petition to wind up the operations of EON Reality Pte. Ltd. will be heard before the High Court of Singapore on May 23, 2025, at 10:00 a.m. Pontus Paal Appelqvist filed the petition against the company on April 29, 2025. The Petitioner's solicitors are: M/s Vicki Heng Law Corporation 140 Upper Bukit Timah Road #03-08 Beauty World Plaza Singapore 588176 SEAGATE DATA: Fitch Gives 'BB+' Rating to Senior Unsecured Notes ---------------------------------------------------------------- Fitch Ratings has rated Seagate Data Storage Technology Pte. Ltd.'s senior notes offering 'BB+' with a Recovery Rating of 'RR4'. The senior notes will be pari passu with the company's existing and future senior unsecured obligations, including existing senior notes at Seagate HDD Cayman. The senior notes are fully and unconditionally guaranteed by the parent company, Seagate Technology Holdings plc, and Seagate Technology Unlimited Company. Seagate will use net proceeds and available cash to redeem in full the 4.875% senior notes due 2027 and pay related fees and expenses. Key Rating Drivers Capital Allocation Priority Shift: Seagate is prioritizing debt reduction with FCF to accelerate the return of credit metrics in line with the 'BB+' rating. Seagate remains on track to end fiscal 2025 with EBITDA leverage below its 3.0x negative rating sensitivity, down from a Fitch-estimated 7.4x in fiscal 2024. Seagate is targeting reducing debt to roughly $5 billion, which positions the company to maintain credit metrics within Fitch's rating sensitivities throughout the forecast period. Upon achieving this target, Fitch anticipates Seagate will resume returning the significant majority of pre-dividend FCF to shareholders through common dividends and stock buybacks. Improving Profitability Profile: Cost reductions and a richer product sales mix from data center (DC) infrastructure investments, including robust investments by hyperscalers to support artificial intelligence (AI), will strengthen the company's profitability profile. High-capacity drives should account for more than 80% of consolidated revenue going forward. Meanwhile, near-record profitability and healthier inventory levels amid tight industry supply will position Seagate to achieve its structurally lower debt target. Secular Demand: Fitch believes that robust demand for storage across media types provides a path for modest positive organic long-term revenue growth. AI and 5G-enabled applications across computing environments will be significant drivers of demand. Fitch expects most of the data creation to be cool or cold storage on lower-cost hard disk drive (HDD)-based capacity drives in the public cloud, driving the bulk of Seagate's long-term revenue growth. Surveillance penetration and other edge applications should lead the remainder of top-line growth. Constructive Industry Conditions: Fitch believes that Seagate's nearly 50% market share in capacity drives supports constructive supply conditions that should enable long-term profitable growth and solid FCF margins. Seagate's intensified capital spending in recent years and repurposing of existing capacity as legacy revenue declines should enable it to manage capital spending at structurally lower levels, including lower near-term capacity additions. Significant Technology Risk: Fitch believes that storage technology and product risks remain high, with capacity increases required to offset significant pricing pressure to sustain HDD's total cost of ownership (TCO) advantage over solid-state drives (SSDs) and keep pace with its chief competitor, Western Digital Corp. (BB+/Rating Watch Negative). Energy assist-based drives promise to provide a roughly decade-long roadmap to drives of more than 50 terabytes, reducing Seagate's technology risk. In addition, the breakdown of Moore's Law constrains SSD makers' ability to close the TCO gap. Peer Analysis Seagate is positioned in line with the current Long-Term Issuer Default Rating and its operating profile is in line with that of its HDD competitor, Western Digital. Seagate and Western Digital represent most of the high-capacity disk drives market, which benefits from secular growth dynamics. Fitch expects Seagate and Western Digital to have similar investment intensities. Tight supply conditions are likely to support average selling prices throughout the forecast period. Fitch considers Seagate's financial profile comparable to that of Western Digital's. Key Assumptions - Robust revenue growth in fiscal 2025 driven by base effects and strong nearline demand; - Resumption of low-to-mid-single digits in fiscal 2026 before correcting in fiscal 2027; - EBITDA margins ranging from 20% to 25% throughout the forecast period; - Dividends remaining roughly flat and capital spending at the midpoint of 4% to 6% of long-term guidance; - Seagate uses FCF and a substantial portion of net proceeds from its system-on-a-chip business sale for debt reduction over the next couple of years; - Longer term, Seagate resumes returning cash flow to shareholders through dividends and buybacks. Recovery Analysis Seagate's debt, excluding debt Fitch attributes to the company's unrated accounts receivable factoring arrangement, is unsecured. Fitch's "Corporate Recovery Ratings and Instrument Ratings Criteria" caps senior unsecured debt at 'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Expectations for annual FCF sustained below $500 million or FCF margins in the low-single digits due to persistently weaker-than-expected revenue trends or profit margins, indicating poor execution on its technology road map; - Expectations for EBITDA leverage sustainably above 3.0x, resulting from debt issuance to support debt funded shareholder returns persistently in excess of FCF. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Public commitment to manage debt levels for EBITDA leverage sustainably below 2.5x; - Expectations for annual FCF margins consistently in the mid-to-high single digits, along with rising revenue, structurally higher market share and diversifying end-market and product exposure. Liquidity and Debt Structure Fitch views Seagate's liquidity as adequate. As of March 28, 2025, liquidity consisted of $814 million in cash, cash equivalents and short-term investments, along with an undrawn $1.3 billion senior unsecured revolving credit facility due June 30, 2030. Average annual FCF of $250 million to $500 million also supports liquidity. Issuer Profile Seagate Technology Holdings Plc is a leading provider of data storage technologies, primarily high-capacity disk drives for cloud service providers and enterprise data centers. Date of Relevant Committee 30-Apr-2024 MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations 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 Recovery ----------- ------ -------- Seagate Data Storage Technology Pte. Ltd. senior unsecured LT BB+ New Rating RR4 SUPRATECHNIC PTE: Court to Hear Wind-Up Petition on May 23 ---------------------------------------------------------- A petition to wind up the operations of Supratechnic Pte. Ltd. will be heard before the High Court of Singapore on May 23, 2025, at 10:00 a.m. United Overseas Bank Limited filed the petition against the company on April 30, 2025. The Petitioner's solicitors are: Tan Kok Quan Partnership 1 Wallich Street #07-02 Guoco Tower Singapore 078881 TAG SENSORS: Creditors' Proofs of Debt Due on June 6 ---------------------------------------------------- Creditors of Tag Sensors (Singapore) Pte. Ltd. are required to file their proofs of debt by June 6, 2025, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 7, 2025. The company's liquidators are: Mr. Ngoh York Chao Nicholas Ms. Pong Siew Inn PKF-CAP Corporate Services c/o 6 Shenton Way #38-01 OUE Downtown 1 Singapore 068809 USPI INVESTMENT: Court to Hear Wind-Up Petition on May 23 --------------------------------------------------------- A petition to wind up the operations of USPI Investment Pte. Ltd. will be heard before the High Court of Singapore on May 23, 2025, at 10:00 a.m. United Overseas Bank Limited filed the petition against the company on April 30, 2025. The Petitioner's solicitors are: Tan Kok Quan Partnership 1 Wallich Street #07-02 Guoco Tower Singapore 078881 ================= S R I L A N K A ================= SRI LANKA: Restructures Nearly US$931MM in Credit Lines with India ------------------------------------------------------------------ Reuters reports that Sri Lanka has restructured nearly US$931 million in lines of credit and buyers' credit facility agreements with the Indian government, the island nation's finance ministry said on May 15. According to Reuters, the deal between the two countries will facilitate deeper cooperation on multiple projects including an energy hub agreed to during a visit by Indian Prime Minister Narendra Modi last month. The debt restructuring covers seven line of credit and four buyers credit facility agreements that were made available to Sri Lanka by the Export-Import Bank (EXIM) of India, the finance ministry statement said, Reuters relays. New Delhi and Colombo have worked to deepen ties as India's southern neighbour recovers after plunging into financial crisis in 2022, Reuters notes. India provided $4 billion in assistance to Sri Lanka to help it weather the tumult including a swap arrangement and other emergency assistance. Reuters says the crisis left Sri Lanka struggling to pay for fuel, medicine and cooking gas. A US$2.9 billion bailout from the International Monetary Fund (IMF), which approved the fourth review of its program last month, has played a critical role in Sri Lanka's post-crisis recovery. Sri Lanka finalised a deal with Japan, another key creditor in March to restructure US$2.5 billion in debt after entering into a preliminary deal with key bilateral lenders last June, recalls Reuters. It still needs to sign similar agreements with China for about US$4.75 billion in debt, notes the report. Colombo also secured a deal to restructure US$12.5 billion of its debt with international bondholders last December, Reuters notes. About Sri Lanka Sri Lanka, formerly known as Ceylon and officially the Democratic Socialist Republic of Sri Lanka, is an island country in South Asia. Sri Jayawardenepura Kotte is its legislative capital, and Colombo is its largest city and financial centre. The island nation defaulted on its foreign debt for the first time in its history in April 2022 as the worst financial crisis since independence from Britain in 1948 crushed its economy. Fitch Ratings upgraded Sri Lanka's Long-Term Foreign-Currency IDR to 'CCC+', from 'RD' (Restricted Default) on Dec. 20, 2024. Fitch also upgraded the Long-Term Local-Currency IDR to 'CCC+', from 'CCC-', to align with the Long-Term Foreign-Currency IDR. Moody's also upgraded Sri Lanka's long-term foreign currency issuer rating to Caa1 from Ca on Dec. 23, 2024. The outlook is stable. S&P Global Ratings on Dec. 27, 2024, affirmed its 'SD/SD' (selective default) long- and short-term foreign currency and 'CCC+/C' long- and short-term local currency sovereign credit ratings on Sri Lanka. The outlook on the long-term local currency rating is stable. ********* 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. 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