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* Moody's has assigned a first time, non-investment grade rating to Union Bank of India (UBI). India's sixth largest commercial bank received a Ba1/Not Prime long and short term rating allied to a bank financial strength rating of E+. In its statement, the agency said that on the positive side the rating reflected the bank's "government ownership, close supervision from the Reserve Bank of India and UBI's extensive nationwide branch network". On the negative side was its "low profitability, undiversified income stream and unstable operating environment as well as its weak balance sheet".

CITIBANK will launch HK$500m to HK$750m of five year securities backed by credit card receivables from its Hong Kong branch later this month. The single tranche deal, the first denominated in the Hong Kong currency, will be guaranteed by Singapore based monoline insurer Asian Securitization and Infrastructure Assurance (ASIA Ltd), rated AA by Duff & Phelps and A by Standard & Poor's.

THE prospects for the immediate China-related stock pipeline remain uncertain, as market participants debate the reason for this week's secondary market volatility. They question whether this was largely the result of liquidity being sucked out in anticipation of China Telecom, or due to a growing disillusionment at the slowness with which asset injections into the Red chip sector are taking place. Bankers commented that China National Aviation Corp (CNAC) will have a particularly tough job getting a firm book together while most accounts are waiting to see how China Telecom fares.

INDONESIA'S only privatisation of the year, the $200m flotation of nickel and gold mining company PT Aneka Tambang (Antam), is entering its final stages. Syndicate members are confident of a strong response from domestic and international investors, despite the problems that have buffeted Indonesian financial markets in recent weeks.

THE $4.56bn flotation of China Telecom, Asia's largest ever equity offering, was priced as expected near the top of its revised indicative range in Hong Kong yesterday (Thursday). The smooth execution of the deal against a backdrop of extreme volatility across all sectors of the Hong Kong stockmarket drew widespread plaudits from market participants, many of whom were nevertheless extremely nervous about the 2.9bn share deal's likely performance in secondary market trading next week.

THE primary market for Korean equity appears to be on the verge of a complete shutdown, with a fifth deal officially cancelled this week and the immediate pipeline thrown into ever-increasing uncertainty. Concerns that an autumn pipeline totalling over $4bn would swamp an already fragile market have been wide of the mark, with most issuers from the republic still unprepared to accept the pricing levels now being demanded by investors.

ROADSHOWS for the $700m to $800m privatisation of the Gas Authority of India (Gail) are to begin next week in Bombay. Led by BZW, Jardine Fleming and Morgan Stanley, the 20% sell-down of government stock represents the first of three privatisations scheduled to be completed before the end of the Indian fiscal year. Under the structure of the offering the company will offer 175m shares with an additional 25m share greenshoe under a indicative pricing range believed to be around the Rp130 to Rp150 level. Bankers and analysts said that the government's decision to adopt a more flexible pricing policy than has traditionally been the case augurs well for the deal's success.

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BRAZILIAN development bank BNDES received a muted response from German investors this week to its DM400m 20 year Eurobond. The deal has prompted concerns that, for all of the progress made by emerging market issuers in the Deutschmark sector, it is still very much the preserve of emerging market sovereigns. The offering, led by Credit Suisse First Boston, offered an attractive coupon of 9%, but traded below its 100.25 fixed re-offer price to around 99.60.

Asset backed securities: * Aire Valley Finance plc

Finland Cultor Ltd is returning to the market for a new $150m incremental loan that is being arranged by its traditional leads Merita Bank Ltd and Union Bank of Switzerland.

* Commerzbank AG Rating: Aa2/AA-