April 15, 2019 / 7:50 AM / 4 months ago

CARE ratings for Indian debt instruments-Apr 15

   Apr 15 (Reuters) - Below are the ratings awarded by Credit Analysis and Research Ltd. (CARE)
for local debt instruments as of April 12, 2019.


COMPANY                               INSTRUMENT         RATING        AMOUNT   MOVEMENT
                                                                       (RS.MLN)
-------                               ----------         ------        -------  ---------
SHORT TERM RATINGS:
-------------------
Aggarwal Associates                   ST Bk Fac          CARE A4        60      Assigned
Alok Buildtech Pvt Ltd                ST Bk Fac          CARE A4+       250     Assigned
Apoorva Construction Co               ST Bk Fac          CARE A4        300     Assigned
Atmastco Ltd                          ST Bk Fac          CARE A3        245     Reaffirmed

Cruso Granito Pvt Ltd                 ST Bk Fac          CARE A4        30      Assigned
Indiabulls Commercial Credit Ltd      CP                 CARE A1+       80000   Placed on
                                                                                Credit Watch
                                                                                with developing 
                                                                                implications
Indiabulls Housing Finance Ltd        CP issue           CARE A1+       150000  Placed on
                                                                                Credit Watch
                                                                                with developing 
                                                                                implications
Indiabulls Housing Finance Ltd        ST Bk Fac          CARE AAA       -       Placed on
                                                                                Credit Watch
                                                                                with developing 
                                                                                implications
Securens Systems Pvt Ltd              ST Bk Fac          -              -       Withdrawn
Santoshi Rice Industries              ST Bk Fac          CARE A4        17.5    Assigned


LONG TERM RATINGS:
-------------------
Accutime Logistics Pvt Ltd            LT Bk Fac          CARE BB+       300     Assigned
Advance Forgings Pvt Ltd              LT/ST Bk Fac       CARE BBB-/CARE 152.5   Assigned
                                                         A3
Aggarwal Associates                   LT Bk Fac          CARE B         40      Assigned
Alok Buildtech Pvt Ltd                LT Bk Fac          CARE BB+       100     Assigned
Amit Oils Pvt Ltd                     LT Bk Fac          CARE BB-       155     Assigned
Anand Coal Agency                     LT Bk Fac          -              -       Withdrawn
Apoorva Construction Co               LT Bk Fac          CARE BB        200     Assigned
Atmastco Ltd                          LT Bk Fac          CARE BBB-      605.3   Reaffirmed
Cruso Granito Pvt Ltd                 LT Bk Fac          CARE BB-       561.1   Assigned
Gemini Equipment And Rentals Pvt Ltd  LT Bk Fac          -              -       Withdrawn
Gemini Equipment And Rentals Pvt Ltd  ST Bk Fac          -              -       Withdrawn
Indiabulls Commercial Credit Ltd      NCDs               CARE AAA       25000   Placed on
                                                                                Credit Watch
                                                                                with developing 
                                                                                implications
Indiabulls Commercial Credit Ltd      Subordinate Debt   CARE AAA       12000   Placed on
                                                                                Credit Watch
                                                                                with developing 
                                                                                implications
Indiabulls Commercial Credit Ltd      Public issue of    CARE AAA       50000   Placed on
                                      secured redeemable                        Credit Watch
                                      NCDs                                      with developing 
                                                                                implications
Indiabulls Commercial Credit Ltd      Public issue of    CARE AAA       5000    Placed on
                                      unsecured                                 Credit Watch
                                      redeemable NCDs                           with developing
                                                                                implications
Indiabulls Commercial Credit Ltd      LT Bk Fac          CARE AAA       150000  Placed on
                                                                                Credit Watch
                                                                                with developing 
                                                                                implications
Indiabulls Housing Finance Ltd        Perpetual Debt     CARE AA+       2000    Placed on
                                                                                Credit Watch
                                                                                with developing 
                                                                                implications
Indiabulls Housing Finance Ltd        NCD                CARE AAA               Placed on
                                                                                Credit Watch
                                                                                with developing 
                                                                                implications
^NCD s amounting to Rs.4096.5 crore reduced on account of redemptions on maturity
Indiabulls Housing Finance Ltd        Subordinate Debt   CARE AAA       50000   Placed on
                                                                                Credit Watch
                                                                                with developing 
                                                                                implications
Indiabulls Housing Finance Ltd        NCDs*              CARE AAA       68011.4 Placed on
                                                                                Credit Watch
                                                                                with developing 
                                                                                implications
*Public Issue of Non-Convertible Debentures and Subordinate Debt
Indiabulls Housing Finance Ltd        Subordinate Debt*  CARE AAA       1988.6  Placed on
                                                                                Credit Watch
                                                                                with developing 
                                                                                implications
*Public Issue of Non-Convertible Debentures and Subordinate Debt
Indiabulls Housing Finance Ltd        LT Bk Fac          CARE AAA      372035.0^Placed on
                                                                                Credit Watch
                                                                                with developing 
                                                                                implications
Jalalabad Solvex Pvt Ltd              LT Bk Fac          CARE B+        60      Assigned
Paappai Exports                       LT Bk Fac          CARE BB-       96.9    Assigned
Pushkar Farms                         LT Bk Fac          CARE BB-       54.4    Assigned
Rao Bharat Singh Education Society    LT Bk Fac          CARE B         114.5   Assigned
Santoshi Rice Industries              LT Bk Fac          CARE B+        39.5    Assigned
Securens Systems Pvt Ltd              LT Bk Fac          -              -       Withdrawn
Swarn Hotels Llp                      LT Bk Fac          CARE B+        78      Assigned
Tcj Impex Pvt Ltd                     LT Bk Fac          -              -       Withdrawn
The Lakshmi Vilas Bank Ltd            Proposed Basel III CARE BB        2500    Assigned
                                      Compliant
                                      Additional Tier I Perpetual Bond issue #
# CARE has rated the aforesaid Basel III Compliant Tier-I Perpetual Bonds 
[Additional Tier I Bonds (Basel III)] after taking
into consideration its key features as mentioned below:
• The bank has full discretion at all times to cancel coupon payments.
• The coupon is to be paid out of current year profits. However, if the current year’s
 profits are not sufficient, i.e., payment of such coupon is likely to result in losses 
 during the current year, the balance of coupon payment may be made out of reserves
 representing appropriation of net profits, including statutory reserves and 
 excluding share premium, revaluation reserve, foreign currency translation reserve,
 investment reserve and reserves created on amalgamation provided the bank meets 
 the minimum regulatory requirements for Common Equity Tier I [CET I], 
 Tier I and Total Capital 
Ratios and capital buffer frameworks as prescribed by the Reserve Bank of India      .
• The instrument may be written-down upon CET I breaching the pre-specified
  trigger of 5.5% before March 31, 2020, and 6.125% on and after March 31, 2020, 
  or written-off / converted into common equity shares on occurrence of the trigger
  event called point of non-viability (PONV). The PONV trigger shall be 
  determined by RBI. Any delay in payment of interest/principal (as the case may be) 
  due to invocation of any of the features mentioned above would constitute as an
  event of default as per CARE’s definition of default and as such these 
  instruments may exhibit a some-what sharper migration of the rating compared
  with other subordinated debt instruments.
The Lakshmi Vilas Bank Ltd            Lower Tier II BondsCARE BBB       505     Revised from
                                                                                CARE BBB
The Lakshmi Vilas Bank Ltd            Tier II Bonds      CARE BBB       781     Revised from
                                      (Basel III                                CARE BBB
                                      Compliant) –I @
@ Tier II Bonds under Basel III are characterized by a ‘Point of Non-Viability’ 
(PONV) trigger due to which the investor may suffer a loss of principal. 
 PONV will be determined by the Reserve Bank of India (RBI) and is a point
 at which the bank may no longer remain a going concern on its own unless 
 appropriate measures are taken to revive its operations and thus, enable it to 
 continue as a going concern. In addition, the difficulties faced by a bank 
 should be such that these are likely to result in financial losses and raising 
 the Common Equity Tier I capital of the bank should be considered as the 
 most appropriate way to prevent the bank from turning non-viable.
 In CARE’s opinion, the parameters considered to assess whether a 
 bank will reach the PONV are similar to the parameters considered 
 to assess rating of Tier II instruments even under Basel II. 
 CARE has rated the Tier II bonds under Basel III after 
 factoring in the additional feature of PONV.
The Lakshmi Vilas Bank Ltd            Tier II Bonds      CARE BBB       1401    Revised from
                                      (Basel III                                CARE BBB
                                      Compliant) –II @
@ Tier II Bonds under Basel III are characterized by a ‘Point of Non-Viability’ 
(PONV) trigger due to which the investor may suffer a loss of principal. 
 PONV will be determined by the Reserve Bank of India (RBI) and is a point
 at which the bank may no longer remain a going concern on its own unless 
 appropriate measures are taken to revive its operations and thus, enable it to 
 continue as a going concern. In addition, the difficulties faced by a bank 
 should be such that these are likely to result in financial losses and raising 
 the Common Equity Tier I capital of the bank should be considered as the 
 most appropriate way to prevent the bank from turning non-viable.
 In CARE’s opinion, the parameters considered to assess whether a 
 bank will reach the PONV are similar to the parameters considered 
 to assess rating of Tier II instruments even under Basel II. 
 CARE has rated the Tier II bonds under Basel III after 
 factoring in the additional feature of PONV.
The Lakshmi Vilas Bank Ltd            Tier II Bonds      CARE BBB       1000    Revised from
                                      (Basel III                                CARE BBB
                                      Compliant) –III @
@ Tier II Bonds under Basel III are characterized by a ‘Point of Non-Viability’ 
(PONV) trigger due to which the investor may suffer a loss of principal. 
 PONV will be determined by the Reserve Bank of India (RBI) and is a point
 at which the bank may no longer remain a going concern on its own unless 
 appropriate measures are taken to revive its operations and thus, enable it to 
 continue as a going concern. In addition, the difficulties faced by a bank 
 should be such that these are likely to result in financial losses and raising 
 the Common Equity Tier I capital of the bank should be considered as the 
 most appropriate way to prevent the bank from turning non-viable.
 In CARE’s opinion, the parameters considered to assess whether a 
 bank will reach the PONV are similar to the parameters considered 
 to assess rating of Tier II instruments even under Basel II. 
 CARE has rated the Tier II bonds under Basel III after 
 factoring in the additional feature of PONV.
Vishnu Textiles Corporation           LT Bk Fac          CARE B+        90      Assigned
--------------------------------------------------------------------------------------------
$: Rating watch with positive implication
#: Rating Watch with Developing implications
@: Rating Watch with Negative Implications
%: Rating under Credit Watch
wd -Rating Stands Withdrawn
sp -Rating Suspended
pp -Principal Protected
pn -Principal Not Protected

CARE may apply + or - signs for ratings to reflect a comparative standing within the category.

BG-Bank Guarantee; CC-Cash Credit; CCPS-Cumulative Convertible Preference Share; CD-Certificate
of Deposit; CLO-Collateralized Loan Obligation; CPA-Claims Paying Ability; CP-Commercial
Paper; CPS-convertible preference shares; CRPS- Cumulative Redeemable Convertible Preference
shares; DDB-Deep Discount Bond; EPBI-Exchange premium bond; FBL-Fund Based Limits; FRB/FRN
-Floating Rate Bond/Note; ICD -Inter Corporate Deposit; ITD-Immediate Term Debt; LOC-Letter of
Credit; LT -Long Term; LTB -Long Term Borrowing; LTD -Long Term Debt; MOCD-multiple option
convertible debenture; MTD -Medium term Debenture; MTN-medium term notes; NCD(SO) -
Non-Convertible Debenture-(Structured Obligation); NCD-Non-convertible Debentures; NCRB-Non
Convertible Redeemable Bonds; NM-Not Meaningful; OCD-optionally convertible debenture; OD-Over
Draft; OFCD-Optionally Fully Convertible Debenture; PCD-Partially Convertible Debenture;
PCN-partly convertible notes; PCPS-Partly Convertible Preference Share; POCD-partly optional;
PP-privately placed; PSPC-Post Shipment & Packing Credit; PS-Preference Shares; PTC-Pass
Through Certificates; RPS-Redeemable Preference Shares; SCPN-secured convertible preference
notes; SDO-Structured Debt Obligation; SLR-Statutory Liquidity Ratio; SO-Structured
Obligation; SPCD - Secured Partly Convertible Debentures; SPN-secured premium notes; STB-Short
Term Bond; STD-Short Term Debentures; ST-Short Term; Sub. Bonds-Subordinate Bonds; TB-Taxable
Bond; TFB-Tax Free Bond; TL-Term Loan; TOCD-triple option convertible debentures.

(Mumbai Rate Reporting Unit + 91 22 6180 7222/3317 7222, E-mail at rru.data@thomsonreuters.com)
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