Hi,
Resolution
1. Launch the Central Management Console (CMC)
2. Navigate to the Servers page
3. In the left pane, select Servers List
4. Select the Web Application Container Server (WACS) and open the Properties page
5. Find the Active Directory Configuration Settings section (a subsection of HTTPS Configuration)
6. Enter the location of the krb5.ini and bscLogin.conf files.
These entries should point to the files directly (e.g C:\WINNT\krb5.ini; :\WINNT\bscLogin.conf)
7. Select Save & Close
8. Restart the Web Application Container Server
9. Attempt to launch the RESTful URL and provide Active Directory credentials
Notice the error no longer appears
NOTE: The entries in step 6 need to be completed regardless of whether or not HTTPS is in use
Please Follow the below Note for More clarification: SAP NOTE - 1777040.
--SumanT