TCREUR_Public/130913.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Friday, September 13, 2013, Vol. 14, No. 182



ARDSHININVESTBANK CJSC: Moody's Affirms Ba3 LT FC Deposit Rating
UNIBANK CJSC: Moody's Lowers Deposit Ratings to 'B1'


CORPORATE COMMERCIAL: Moody's Lowers Deposit Ratings to 'B1'


BANK OF CYPRUS: Elects New Board Amid Depositor Protests


STORA ENSO: S&P Revises Outlook to Stable & Affirms 'BB' CCRs


* Moody's Issues Report on Germany's Covered Bond Legal Framework


* GREECE: Lenders May Need to Prepare Third Aid Package


ATLAS IX CAPITAL: S&P Assigns 'BB' Rating to US$180MM Cl. B Notes
MIDLAND CONTRACTORS: Forced to Pay EUR2.1 Million in Taxes
RAILWAY HOTEL: HM Revenue & Customs Files Winding-Up Petition


CENTRAL ASIA: Fitch Affirms 'BB-' National Long-Term Rating


POLISH TELEVISION: S&P Affirms 'B-' CCR; Outlook Stable
* NETHERLANDS: Corporate Bankruptcies Hit Lowest Level in August


LIEPAJAS METALURGS: Investors Unlikely to Come From West


BALTIYSKIY BANK: S&P Puts 'B-' CCR on CreditWatch Negative
BORETS INTERNATIONAL: Moody's Assigns 'B1' CFR; Outlook Stable
BORETS INT'L: S&P Revises Outlook to Neg. & Affirms 'BB' CCR
DAGESTAN AIRLINES: Declared Bankrupt by Dagestan Court
GAZPROMBANK: Fitch Rates Upcoming Subordinated Notes 'BB-(EXP)'


BANCAJA 13: Swap Documentation Amendments No Impact on Moody's

U N I T E D   K I N G D O M

AQUACULTURE HYDROPONIC: GroWell Buys Firm Out of Administration
APT DESIGN: Consultancy Firm Goes Into Liquidation
BLITZ GAMES: Placed in Liquidation After 23 Years
LONDON TAXI: Geely Restarts Production of London Black Cabs
RAILCARE: Trainees Kept on by Firm's New Owners

SIDELL GIBSON: Creditors Tap Baker Tilly as Liquidators
SKIP HIRE: In Administration Following Two Fires in 7 Months
ZOO ABS IV: Fitch Affirms 'CC' Rating on Class E Notes


* 2014 Likely a Turning Point for EMEA Corporates, Fitch Says
* Hybrid Issuance Not Enough to Remedy Weakness in EUR Utilities
* Fitch Comments on Proposed Regulatory Changes to Money Market
* BOOK REVIEW: Carter Pate and Harlann Platt's The Phoenix Effect



ARDSHININVESTBANK CJSC: Moody's Affirms Ba3 LT FC Deposit Rating
Moody's Investors Service has affirmed Ardshininvestbank CJSC's
Ba2 long-term local-currency deposit rating, Ba3 long-term
foreign-currency deposit rating, and D- standalone bank financial
strength rating (BFSR), equivalent to a baseline credit
assessment (BCA) of ba3. The bank's Not Prime short-term local-
and foreign-currency deposit ratings were also affirmed. The
outlook on the bank's deposit ratings was changed to stable from
negative, whilst the BFSR continues to carry a stable outlook.

The affirmation reflects the overall stability of
Ardshininvestbank's credit profile, while the change on outlook
on deposit ratings takes into account Moody's outlook change on
Armenia's Ba2 government bond rating to stable from negative in
August 2013. The sovereign ratings were also affirmed at that

Ratings Rationale:

The affirmation of Ardshininvestbank's D- standalone BFSR
reflects Moody's assessment of the overall stability in the
bank's credit profile, which incorporates the following aspects:
(1) adequate capital level with an equity-to-assets ratio of
16.5% at end-H1 2013; (2) satisfactory asset quality as the
volume of the bank's medium- and high-risk loans declined to 3.7%
of the total loan book at end-H1 2013 from 6.9% at year-end 2012;
(3) good profitability with a return on average assets (RoAA) of
1.99% for H1 2013, driven by robust revenues and moderate loan
loss charges; and (4) an acceptable liquidity profile, with
moderate funding concentration and a liquid assets buffer
amounting to 31% of the bank's total assets at end-H1 2013.

Moody's also notes that despite the currently modest level of
problem loans, Ardshininvestbank's highly concentrated loan book
may come under pressure if economic conditions deteriorate
significantly as risks to economic growth remain elevated in
Russia and the EU -- i.e., Armenia's main trading partners.

The change of the outlook on the bank's deposit ratings to stable
from negative was prompted by Moody's outlook change on Armenia's
Ba2 sovereign ratings to stable from negative, announced on
August 20, 2013. Ardshininvestbank is one of the largest banks in
Armenia with a market share of 8.6% in total bank loans and 9% in
resident retail deposits as of end-H1 2013. Given the bank's
systemic importance, Moody's incorporates a moderate probability
of systemic support in the bank's deposit ratings. As a result,
Ardshininvestbank's Ba2 local currency deposit rating receives
one notch of support uplift from its ba3 BCA. Ardshininvestbank's
Ba3 foreign-currency deposit rating is constrained by the Ba3
country ceiling for foreign currency deposits in Armenia.

What Could Move The Ratings Up/Down

Given Ardshininvestbank's geographic concentration to its
domestic market, any upward potential for the ratings is largely
dependent on substantial improvements in its operating

Ardshininvestbank's ratings may be downgraded if its asset
quality weakens materially, thus challenging both its
profitability and capitalization.

The principal methodology used in this rating was Global Banks
published in May 2013.

Headquartered in Yerevan, Armenia, Ardshininvestbank reported
total assets of US$492 million, shareholder equity of $88.8
million and net income of US$10.5 million as of year-end 2012,
according to its audited IFRS report.

UNIBANK CJSC: Moody's Lowers Deposit Ratings to 'B1'
Moody's Investors Service has downgraded Unibank CJSC's long-term
local- and foreign-currency deposit ratings to B1 from Ba3 and
maintained the negative outlook on the ratings. Concurrently,
Moody's affirmed the bank's E+ standalone bank financial strength
rating (BFSR) and lowered the corresponding baseline credit
assessment (BCA) to b2 from b1. The bank's Not Prime short-term
local- and foreign-currency deposit ratings were affirmed. The
outlook on the BFSR remains stable.

Ratings Rationale:

The downgrade of Unibank's deposit ratings to B1 from Ba3
reflects weakening of the bank's credit profile, in particular
its loss absorption capacity, which incorporates the following
aspects: (1) modest capital adequacy with an equity-to-assets
ratio of 13.3% at year-end 2012 and a regulatory total capital
adequacy ratio of 14% at end-H1 2013; (2) mediocre asset quality
with non-performing loans accounting for 5.5% of the gross loans
at end-H1 2013, which require higher loan loss reserves than the
1.9% of the gross loans created as of the same date; (3)
weakening profitability stemming from fast-growing funding costs
and operating costs -- the bank's Return on Average Assets
decreased to 1.27% in 2012 from 1.64% in 2011. In Q1 2013
Unibank's pre-provision profit (PPI) declined by 68% from Q1
2012, resulting in PPI-to-Total Assets ratio of 0.9% at end Q1
2013, down from 3.2% at end-Q1 2012. At the same time, Moody's
notes that Unibank's credit strength is supported by the bank's
developing retail and SME franchise.

Moody's expects that the negative pressure on Unibank's capital
adequacy (absent an external capital injection) and profitability
will likely persist in the next 12 to 18 months. Therefore the
deposit ratings carry a negative outlook that indicates a further
downside risk to the ratings.

Unibank is an important player in Armenia's retail deposits
market with a 10.3% share in resident retail deposits at end-H1
2013. Given the bank's systemic importance, Moody's incorporates
a moderate probability of systemic support in the bank's deposit
ratings. As a result, Unibank's B1 local and foreign currency
deposit ratings receive one notch of support uplift from its b2

What Could Move The Ratings Up/Down

Unibank's ratings have limited upside potential currently, as
indicated by the negative outlook. Moody's may change the outlook
to stable in the next 12 to 18 months if Unibank materially
improves its profitability and capital adequacy.

Any notable deterioration in Unibank's profitability and
liquidity may result in a ratings downgrade. A material increase
in the volume of problem loans, which may put pressure on the
capital adequacy, may also have negative rating implications.

The principal methodology used in this rating was Global Banks
published in May 2013.

Headquartered in Yerevan, Armenia, Unibank reported total assets
of US$342.8 million, shareholder equity of US$45.6 million and
net income of $4 million as of year-end 2012, according to its
audited IFRS report.


CORPORATE COMMERCIAL: Moody's Lowers Deposit Ratings to 'B1'
Moody's Investors Service has downgraded Corporate Commercial
Bank's long-term local and foreign-currency deposit ratings to B1
from Ba3, and also lowered its baseline credit assessment (BCA)
to b2 from b1, which is equivalent to the E+ standalone bank
financial strength rating (BFSR). The short-term deposit ratings
of Not-Prime are unaffected by the rating action. The deposit
ratings carry a negative outlook.

Moody's says that the rating action is driven by (1) Corpbank's
continued rapid credit expansion in the context of Bulgaria's
challenging operating environment, which raises concerns over
potential asset quality pressures; (2) modest capital buffers,
particularly in light of Corpbank's high credit concentration;
and (3) continued downward pressure on profitability. These
factors are only partially offset by the bank's solid liquidity
buffers and its growing, and increasingly diversified, deposit
base in Bulgaria.

Ratings Rationale:

- Bulgaria's Challenging Operating Environment And Corpbank's
Continued Rapid Credit Expansion Raise Concerns Over Asset
Quality Pressure

The first driver of the action is Corpbank's continued rapid
credit expansion within the context of Bulgaria's challenging
operating environment. For the first six months of 2013,
Corpbank's loan book grew by 16% compared to a -0.3% contraction
for the system, and this follows an annual average growth rate of
39% between 2010-12, compared with 3% growth rate for the system.
Moody's says that although the bank's loan-book quality has so
far remained more resilient than its peers, with non-performing
loans (NPLs) at 1.8% of gross loans as of June 2013, the stock of
NPLs expanded by 141% in absolute terms between December 2012 and
June 2013, from BGN32.8 million to BGN79.0 million. Also, as a
reflection of the recent rapid growth, a significant portion of
the loans are unseasoned and exposed to the effects of Bulgaria's
subdued economic conditions. In Q1 2013, Bulgaria's real GDP grew
by a modest 0.8% (according to the National Statistics Institute
(NSI)), while unemployment increased to 13.8% (approximately
double the levels recorded in Q1 2009). Although Moody's
anticipates that Bulgaria's economic performance will improve
slightly in the coming years, the rating agency expects that
growth rates will remain well below pre-2008 levels of around 6%
annual GDP growth.

- Modest Capital Buffers, Especially In Light Of Corpbank's High
Concentration Levels

The second driver for the action is Corpbank's high concentration
levels in the loan portfolio. Despite the bank's significant
balance sheet growth in recent years, loan concentrations have
not been declining and continue to expose the bank to downside
risks if a large borrower becomes impaired. These concerns are
particularly acute given Corpbank's modest capitalization
metrics, with a Tier 1 ratio of 9.8% as of June 2013, and a
capital adequacy ratio (CAR) of 12.2% as of June 2013, just above
the 12% regulatory minimum. Although the bank raised new equity
in Q2 2013 and plans to raise additional capital in Q3 2013,
Moody's expects that Corpbank's Tier 1 ratio will remain well
below the banking system Tier 1 ratio of 15.6% as of June 2013,
and continue to provide the bank with limited capacity to absorb
unexpected losses.

- Continued Downward Pressure On Profitability

The third driver is the continued downward pressure on Corpbank's
profitability, with the annualized return on average assets ratio
at approximately 0.9% in H1 2013, compared with a 1.2% ratio in
2012 and 3.1% in 2010. The pressure on profitability stems from:
(1) compressed interest-rate margins, largely reflecting higher
funding costs, as the bank continues to diversify its funding
base; and (2) increasing loan-loss provisioning charges, which
absorbed 39% of pre-provision income in the first half of 2013.
Bulgaria's persistently challenging operating conditions indicate
that provisioning charges will remain elevated, sustaining
pressure on the bank's profits.

- Good Liquidity Buffers Provide Some Cushion

Despite the aforementioned negative drivers, Moody's also
recognizes that Corpbank's standalone profile continues to be
supported by its sound liquidity buffers and by its growing and
increasingly diversified deposit base. As at end-June 2013,
liquid assets as a percentage of total assets were estimated at
28.5%, while total deposits grew by 10% in H1 2013, supporting
the longer-term upward trend in total deposits, which grew by an
annual average rate of 42% between 2010-12. Also, Moody's notes
that the bank managed to diversify its deposit base with retail
deposits constituting 66% of total deposits at end-June 2013,
compared to a 41% ratio at end-2010.

Rationale For The Negative Outlook

The negative outlook on the bank's long-term deposit ratings
reflects Moody's view of the risk that the seasoning of the loan
portfolio may lead to further asset-quality and profitability
pressures, which in turn could weaken the bank's capital levels.

What Could Move The Ratings Down/Up

Downward pressure might develop on the ratings if the bank's
asset quality, capitalization and profitability levels were to
weaken beyond current expectations. Although upward pressure on
the bank's ratings is currently limited, the outlook could be
revised to stable if profitability metrics stabilize and loan
concentrations are reduced.

Principal Methodology

The principal methodology used in this rating was Global Banks
published in May 2013.

Headquartered in Sofia, Bulgaria, Corpbank reported total
unconsolidated assets of BGN6.3 billion (EUR3.2 billion),
according to the bank's unaudited financial statements ending
June 2013.


BANK OF CYPRUS: Elects New Board Amid Depositor Protests
Andreas Hadjipapas and Kerin Hope at The Financial Times report
that shareholders in Bank of Cyprus elected a new board of
directors on Tuesday amid noisy protests by uninsured depositors
who lost a significant portion of their savings through an
unprecedented bail-in agreed with the EU and International
Monetary Fund in March.

Angry Cypriots attending an extraordinary general meeting of BoC
shareholders complained over a reduction in the nominal value of
the bank's shares from one euro to one cent in a mandatory
recapitalization overseen by an interim board of directors, the
FT discloses.  Dozens of shareholders walked out of the meeting
in protest, the FT relates.

According to the FT, about 1,000 people attended the meeting,
including lawyers representing dozens of Russian and Ukrainian
customers of BoC, the island's biggest lender, who transferred
funds abroad through companies based on Cyprus.

Deposits above EUR100,000 took a 47.5% "haircut" under the
bail-in, agreed as part of a EUR10 billion rescue package for
Cyprus, the FT notes.  Depositors received shares in the slimmed
down bank, and were promised regular interest payments on another
22.5% of deposits that have remained frozen to prevent a massive
flight of capital, the FT states.

Some shareholders called for the meeting to be declared invalid
because the accountants KPMG missed an August 31 deadline for
presenting the bank's 2012 consolidated balance sheet, the FT
says.  BoC has absorbed the healthy assets of Laiki (Popular)
Bank, the island's second-largest lender, which was shut down in
March, the FT recounts.

Six Russian and Ukrainians who held large deposits in BoC were
elected to the 16-member board, which has to be approved by the
island's central bank, according to the FT.

Bank of Cyprus is a major Cypriot financial institution.  In
terms of market capitalization of 350 million in March 2013, it
is the country's biggest bank.  As of September 2012, the bank
held a 26.7% share of the Cypriot deposit market and a 22.5%
share of the Cypriot loan market, making it the largest bank in
Cyprus.  The Bank of Cyprus Group employs 11,326 staff worldwide.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on April 16,
2013, Moody's Investors Service downgraded Bank of Cyprus Public
Company Limited's deposit ratings to Ca, negative outlook, from
Caa3 and senior unsecured debt ratings to C, from Caa3.  The
subordinated and junior subordinated debt ratings of BoC were
affirmed at C.


STORA ENSO: S&P Revises Outlook to Stable & Affirms 'BB' CCRs
Standard & Poor's Ratings Services said that it had revised its
outlook on Finnish forest products group Stora Enso Oyj to stable
from negative.  At the same time the 'BB' long-term and 'B'
short-term corporate credit ratings and the 'K-4' Nordic regional
scale rating were affirmed.

S&P revised the outlook to stable because it no longer thinks
that there is a one-in-three probability that it will downgrade
Stora Enso in the next 12-18 months.  S&P now expects that Stora
Enso will improve its credit metrics on the back of strengthened
operational performance and a revised investment plan for
construction of its integrated paperboard and pulp mill in China.

Although credit metrics are currently weak for S&P's
"significant" financial risk profile for Stora Enso, with
adjusted funds from operations (FFO) to debt of about 16% for the
12 months ended June 30, 2013, S&P expects them to improve
markedly in 2014 with adjusted FFO to debt of well above 20%.
The long-term rating incorporates Stora Enso's "strong" liquidity
as a partial offset to the recent weakening in credit metrics.
The rating further incorporates S&P's view of Stora Enso's
business risk profile as "fair".

Stora Enso's business risk profile is constrained by the group's
still-significant exposure to the impaired European paper
markets. Despite recent capacity closures, they still have
overcapacity in certain paper grades, which makes increasing
prices difficult.  It is further constrained by a large
proportion of sales in low-growth European markets.  These
weaknesses are offset by a well-diversified asset and product
portfolio and a strong and growing presence in the paper-based
packaging segment, where consumer packaging in particular tends
to show more resilience to cyclical downturns.

The group's "significant" financial risk profile is based on its
highly cyclical operational cash flow generation, which is
balanced by a "strong" liquidity profile.

The stable outlook reflects S&P's view that Stora Enso's revised
investment program, in combination with profitability
improvements, will lead to adjusted FFO to debt of about 20% in
2013 and 20%-25% in 2014, levels S&P thinks are commensurate with
the 'BB' long-term rating.

S&P could lower the long-term rating as a consequence of
weakening market conditions in combination with higher-than-
expected investment levels, leading to a deterioration in credit
metrics. For example, S&P would consider a ratio of FFO to debt
of about 15% for an extended period as incommensurate with the
long-term rating.  Furthermore, S&P believes the group's credit
quality could be adversely affected if its financial policy
became less stringent.  This could occur as a result of large-
scale, debt-financed acquisitions or exceptionally shareholder-
friendly measures, although S&P thinks these are currently

An upgrade is highly unlikely over the short term, in S&P's view,
due to still-difficult European paper markets and the group's
investment ambitions.  Over the longer term, S&P could raise the
long-term rating if it saw substantial and sustained improvements
in the group's profitability and cash flow generation to such an
extent that it could revise Stora Enso's business risk profile
upward or if FFO to debt rose above 30%.


* Moody's Issues Report on Germany's Covered Bond Legal Framework
Germany's covered bond legal framework has many strengths, says
Moody's Investors Service in a new Special Comment entitled
"Germany - Legal Framework for Covered Bonds" that compares
various features of the German law to those of an "average" or
"typical" framework.

Important strengths include: (1) a relatively low loan-to-value
(LTV) threshold for mortgage-backed assets of 60%, together with
conservative valuation requirements for the underlying property;
and (2) a continuous net present value (NPV) test incorporating
material interest-rate and currency-risk stresses, and (3) a 180-
day liquidity reserve for both interest and principal payments.

In addition, the framework benefits from strong independent
oversight from (1) the cover pool monitor (Treuhaender), before
issuer default and (2) a cover pool administrator (Sachwalter),
after issuer default. The Sachwalter however may be appointed by
the regulator prior to default and is equipped with flexible
refinancing options.

While the list of strengths outweighs that of weaknesses, Moody's
also highlights some negative features, such as the possibility
for covered bond investors to have 100% exposure to commercial
real estate loans with no obligor concentration limits.

In the report Moody's has ranked legal features as either Strong,
Average, or Weak (denoted Moody's Legal Views or "MLVs"). MLVs
reflect a relative, credit-based, view of how legal features
compare to an "average" or "typical" covered bond legal
framework. A common benchmark is used so that reports can be
compared across jurisdictions. Moody's will continue to review
legal frameworks, so the benchmark and MLVs may evolve over time.
Furthermore, market practices may, where permitted: (1) reduce
protection for covered bondholders by overriding or otherwise
altering the effect of provisions in the law; or (2) improve
protection for covered bondholders over and above the provisions
of the law. In these cases Moody's uses "MP" to denote market
practice and provide a composite evaluation.

This is the fifth in a series of reports for individual covered
bond jurisdictions, each of which discusses a common set of legal
features in a set format. These reports offer Moody's credit
perspective on the strength of each legal feature so that readers
can meaningfully compare the reports across jurisdictions.


* GREECE: Lenders May Need to Prepare Third Aid Package
Laurence Norman at Dow Jones Newswires reports that Luc Coene,
the president of Belgium's National Bank, said in a radio
interview Wednesday morning, Greece's official lenders could need
to step in twice more to help the country as it very slowly
recovers from its economic crisis.

According to Dow Jones, asked whether Greece's euro zone partners
will need to prepare a third aid package for Greece, Mr. Coene,
who is also a European Central Bank Governing Council member,
said there will need to be at least one more package of support.

Mr. Coene, as cited by Dow Jones, said that Greece is seeing an
improvement in its economic situation but it is "very slow" and
it will take "a lot more time" to sort out Greece's problems.
However, he said the challenges in Greece no longer place the
"whole edifice" of the euro zone at risk, Dow Jones notes.

There has been broad recognition that the euro zone will have to
stump up extra money to help Greece overcome a financing gap
toward the end of the year with German Finance Minister
Wolfgang Schauble admitting last month a third bailout will be
needed, Dow Jones states.

Greece is drawing on a EUR200 billion bailout from the euro zone
and a EUR40 billion package from the International Monetary Fund,
Dow Jones says.  A team of international experts from the troika
of supervising institutions -- the European Commission, the
European Central Bank and the IMF -- are due in Athens later in
September to check on progress, Dow Jones discloses.


ATLAS IX CAPITAL: S&P Assigns 'BB' Rating to US$180MM Cl. B Notes
Standard & Poor's Ratings Services said that it has assigned its
'BB (sf)' issue credit rating to the US$180 million variable-rate
principal-at-risk series 2013-1 class B notes issued by Atlas IX
Capital Ltd.  The issuer has chosen not to issue class A notes,
therefore S&P has withdrawn the preliminary issue credit rating
for the class A notes.  This mortality catastrophe bond
transaction was sponsored by SCOR Global Life SE, the risk
transfer counterparty and an operating entity of SCOR SE.

Noteholders are at risk from an increase in age- and gender-
weighted mortality rates that exceed a specified percentage of a
reference mortality index value.  This mortality index is
constructed by Risk Management Solutions Inc. from information
obtained from The U.S. Centers for Disease Control and Prevention
or its successor.  The noteholders are exposed to mortality rates
in the U.S. states and the District of Columbia only.

S&P has based its rating on the lower of its 'BB' implied ratings
on the mortality risk; its long-term 'AAA' issuer credit rating
on the European Bank for Reconstruction and Development (EBRD) as
the issuer of the assets in the collateral account; and the risk
of nonpayment of the quarterly contract payment by SCOR Global
Life SE, which has a 'A+' long-term rating.  The underlying
assets in the collateral account are not rated by Standard &

MIDLAND CONTRACTORS: Forced to Pay EUR2.1 Million in Taxes
Paul Melia at reports that Midland Contractors Ltd
has been forced to pay more than EUR2.1 million in taxes,
interest and penalties to the Revenue Commissioners.

Midland Contractors Ltd tops the list of tax defaulters published
on September 10 for the second quarter of the year, the report

The company, which is in liquidation, was hit with the penalties
for under-declaration of VAT following a Revenue audit case,
according to the report. says the company is among four defaulters who
reached settlements with the tax authorities of more than
EUR1 million.

According to the report, the others are landlords Barry & Sons
(Navan) Ltd, with an address at Unit 12, Fashion City, M50
Business Park in Dublin 24, which paid a total of EUR1,043,360
for underdeclaration of corporation tax and company director and
landlord Brendan O'Connor from Kilbride, The Ballagh,
Enniscorthy, Co Wexford who reached a settlement of EUR1,207,988
for under-declaration of VAT and income tax.

The report relates that Bed suppliers the Orthopaedic Bed
Company, with an address at Dublin Road, Carrick on Shannon, Co
Leitrim, reached a settlement of EUR1,234,782.18 for failing to
pay income tax, VAT and PAYE/PRSI.  It is also in liquidation.

The list of defaulters covers the three-month period to June 30
last, and includes 136 names.  The settlements in these cases
total EUR22.62 million, the report adds.

RAILWAY HOTEL: HM Revenue & Customs Files Winding-Up Petition
Impartial Reporter reports that Railway Hotel could face
liquidation if it is unable to settle its debts towards HM
Revenue and Customs.

The UK's customs and tax department lodged a petition to wind up
the Railway Hotel in Enniskillen in July under the Insolvency
(Northern Ireland) Order 1989, Impartial Reporter relates.

Railway Hotel is one of Fermanagh's oldest hotels.


CENTRAL ASIA: Fitch Affirms 'BB-' National Long-Term Rating
Fitch Ratings has affirmed Joint-Stock Company Central Asia
Cement's (CAC) National Long-Term Rating at 'BB-(kaz)' with
Positive Outlook and senior unsecured bond rating at 'B(kaz)'.
Fitch has simultaneously withdrawn the ratings.

CAC has chosen to stop participating in the rating process.
Therefore, Fitch will no longer have sufficient information to
maintain the ratings. Accordingly, Fitch will no longer provide
ratings or analytical coverage for CAC.

Key Rating Drivers

Kazakh Market Still Buoyant

The Kazakh cement market continued showing a positive trend in
H113, with a growth rate of 11%. Steppe Cement, CAC's ultimate
holding company, reduced its market share to 16% from 19%, as the
company strategy was to pursue higher selling prices than
volumes. Steppe Cement's selling price increased +15%yoy,
allowing revenue to rise by 6%, despite a decline in volumes.

Solid Market Positioning

Steppe Cement has a leading position in the Kazakh cement market,
with a share of 20%, and a cost advantage over its competitors,
thanks to the favorable location of its Karaganda plant, which
has been partially renovated to efficient dry technology. The
rating also reflects the healthy long-term prospects for cement
demand in Kazakhstan, backed by solid GDP growth, strong
potential for residential demand, and by the upgrading of

High Operational Risk

Despite the improvement in financials, Steppe Cement's ratings
are constrained by the high operational risk, as the group is
present exclusively in the Kazakh cement market, which has been
extremely volatile in terms of both volumes and prices in recent
years. The potential realization of additional capacity from a
number of competitors could cause a demand/supply imbalance in
the next few years, which could put pressure on cement prices and
on industry margins. Moreover, Steppe Cement operates a single
cement production plant, increasing operational risk. Lastly, the
completion of Line 5 projects is still subject to execution risk.

Solid Financial Structure

Following Steppe Cement's GBP10 million (US$16 million) capital
increase completed in December 2012 and CAC's KZT1.5 billion
(US$9.5 million) unsecured bond issue completed in November, the
group has raised most of the US$30 million needed to complete its
Line 5 refurbishment project and improved its financial
structure. Funds from operations (FFO) net leverage declined to
1.5x at end-2012 (from 2.6x at end-2011), and Fitch expects gross
leverage to improve from 2013, when Steppe Cement will repay part
of its long-term bank facilities, falling below 2.0x.

High Secured Debt

The rating of CAC's unsecured bond reflects its subordination to
all the other bank facilities of Steppe Cement and the fact that
all the major group's assets are pledged. Long-term facilities
from HSBC and EBRD are secured against the Karaganda cement plant
(the only group's plant) while RCF from local banks are secured
against commercial receivables and inventories, thus reducing the
recovery expectation for unsecured creditors in case of default.

Steppe Cement Consolidated

Fitch rates CAC on the basis of Steppe Cement Limited's credit
profile and consolidated figures. Fitch considered this to be the
most meaningful economic entity in view of both the strong
operational ties between Steppe Cement, and its 100% controlled
subsidiaries CAC and Karcement, and the cross guarantees on their
respective debts.


POLISH TELEVISION: S&P Affirms 'B-' CCR; Outlook Stable
Standard & Poor's Ratings Services said it affirmed its 'B-'
long-term corporate credit rating on the Netherlands-based
holding company Polish Television Holding B.V. (PTH).  The
outlook is stable.

At the same time, S&P affirmed its 'B-' issue ratings on the
company's existing EUR260 million senior secured notes, due 2017.

S&P assigned its 'B-' issue rating to its proposed EUR300 million
senior secured payment-in-kind (PIK) toggle notes due 2020, to be
issued by PTH.

The affirmation follows the launch of PTH's proposed
EUR300 million senior secured PIK toggle notes.  S&P understands
PTH will use the proceeds from the proposed notes to repay its
existing EUR260 million notes due 2017, including "make-whole"
premiums, accrued interest, and fees.

"Although we believe the new issuance will result in a moderate
releveraging of PTH, given the transaction costs and the make-
whole premium that the company must pay to retire the existing
notes, we think PTH's liquidity will benefit from the "pay-if-
you-can" feature under the new indenture.  We understand PTH
intends to pay the coupon throughout the life of the notes in
cash. Although we do not anticipate any overfunding to bolster
PTH's cash position, we understand the company will receive a
dividend payment from subsidiary TVN S.A. of about EUR15 million
in November this year, which should serve as an initial cash
buffer. We note that PTH's ability to pay the coupon in cash will
depend almost exclusively on the receipt of TVN dividends.  We
would, however, post the transaction, continue to view liquidity
as "less than adequate," according to our criteria, given the
group's exposure to foreign-exchange fluctuations due to the
currency mismatch between interest expense and dividends from
TVN," S&P said.

"We believe the proposed refinancing will also provide more
visibility on the group's capital structure given the extension
of its debt maturity profile to 2020.  Post the transaction,
PTH's notes would mature after 2017, the last year French TV
broadcaster Canal+ S.A. can exercise its call options on its
remaining stake in TVN.  This would allow more visibility to
PTH's noteholders should Canal+ not exercise its call options.
In addition, the transaction would allow the group to avoid a 200
basis-point step-up in interest that would have materialized in
November 2014 as per the 2017 bond indenture," S&P added.

The stable outlook mirrors that on TVN, as the rating on PTH is
closely linked to that of TVN.  It primarily reflects S&P's view
that, following the completion of the proposed refinancing, PTH
will be less dependent on dividend income from TVN.  Although PTH
intends to cash pay the coupon of the PIK toggle notes, the "pay-
if-you-can" feature substantially reduces the risk of default on
these notes.

S&P could consider lowering the rating on PTH if it downgraded
TVN.  Likewise, S&P could consider raising the rating PTH if it
upgraded TVN.

* NETHERLANDS: Corporate Bankruptcies Hit Lowest Level in August
CBS reports that in August this year, 608 businesses and
institutions (excluding one-man businesses) were declared
bankrupt in the Netherlands, the lowest level in 2013 so far,
although the number of bankruptcies was 19% up from August 2012.

According to CBS, many businesses and institutions declared
bankrupt in August were active in the sectors trade (149) and
construction (99).

The number of bankruptcies soared in the first eight months of
2013, CBS discloses.  A total of 5,758 businesses and
institutions were declared bankrupt in the first eight months of
this year, a 15% increase relative to the same period in 2012,
CBS notes.


LIEPAJAS METALURGS: Investors Unlikely to Come From West
The Baltic Times, citing LETA, reports that President
Andris Berzins doubts that Liepajas metalurgs investors could
come from the West, where the crisis in the metallurgical
industry has been overcome and there is no need for additional
production facilities.

According to The Baltic Times, Mr. Berzins emphasizes in an
interview with Neatkariga Rita Avize that it is necessary to do
everything possible for the company to continue operating.

As reported by the Troubled Company Reporter-Europe on Sept. 3,
2013, The Baltic Times related that in the latest, and ongoing,
fiasco to hit the Latvian business community, the government,
creditors and shareholders are working to keep Liepajas metalurgs
afloat and agree on a workout plan for the company.
Amid allegations of corrupt operations, in which the company's
owners had been siphoning off profits through subsidiaries while
allowing the parent company to collapse, bankruptcy if assured if
agreement, and a workable plan, can't be reached, The Baltic
Times disclosed.  As is the usual procedure, it seems, the
Latvian government has stepped in to bail out the shareholders of
a private company, but with the risk that ultimately, Liepajas
metalurgs could end up costing the Latvian taxpayer millions, The
Baltic Times noted.

Liepajas metalurgs is a Latvian joint stock metallurgical


BALTIYSKIY BANK: S&P Puts 'B-' CCR on CreditWatch Negative
Standard & Poor's Ratings Services said it placed its 'B-' long-
term corporate credit and its 'ruBBB-' Russian national scale
ratings on Russia-based Baltiyskiy Bank on CreditWatch with
negative implications.

The CreditWatch placement reflects S&P's view that the conflict
between Baltiyskiy Bank shareholders and the ensuing reputational
issues may weaken the bank's business stability.  In particular,
S&P thinks that this conflict and its risks could limit the
bank's ability to maintain a stable deposit base and to achieve
operational profitability.  The conflict may also put at risk the
planned capital increase, in S&P's opinion.

Baltiyskiy Bank is experiencing a conflict between its majority
shareholders, Mr. Oleg Shigaev, the CEO of the bank, and
Mr. Andrey Isaev.  Both own stakes of about 49.88% in the bank.
Mr. Isaev and other board members have filed suit to challenge a
number of decisions made by the board of directors, including the
appointment of the management board.  Several other suits between
the parties are currently being reviewed by the arbitrary court.
The hearings are scheduled for early October.

S&P believes that the deepening conflict between the shareholders
may have negative implications for the credit profile of
Baltiyskiy Bank.

First, the conflict may increase volatility in the deposit base,
which is the primary funding source of Baltiyskiy Bank.  A
negative impact on the bank's business stability and its
reputation could also lead to the dilution of its commercial
franchise over the long term.

"Second, our base-case scenario of capital and earnings includes
gradual reduction of exposure to real estate and other noncore
assets of up to Russian ruble (RUB)20 billion as of mid-2012.  We
believe that the tensions between shareholders could further
delay the real estate asset sale in progress.  This would prevent
the bank from restoring its operational profitability, which has
been very weak over the past four years.  We observe that the
first stage of this sale, worth RUB7 billion -- initially
scheduled to close in the first half of 2013 -- is still pending.
We believe that further delays in this transaction would be
detrimental to the bank's competitive position, as it would keep
a high amount of noncore and noninterest generating assets on the
balance sheet, at the expense of interest bearing and client-
driven assets," S&P said.

Third, the ongoing conflict increases concerns over successful
and timely completion of the capital increase to RUB1.7 billion,
which the bank expects to finalize by the end of 2013.  S&P
understands that currently both shareholders are contemplating
participation in the capital increase.

S&P takes into account these potential risks by placing the
ratings on Baltiyskiy Bank on CreditWatch with negative

The resolution of the CreditWatch will depend on the outcome of
the shareholders' conflict after the court announces its decision
and the bank discloses its subsequent conclusions.  S&P will also
consider the evolution of the bank's capital and liquidity
position.  S&P will have a better understanding of the bank's
situation after the initial court hearings set for October 2013
take place and the capital increase is scheduled to complete.

S&P could lower the ratings if there was a large reduction in the
currently adequate liquidity cushion, or if S&P was to see
increasing deposit outflows.  A significant deterioration in the
business franchise driven by the deepening of the conflict or
further uncertainty of the noncore asset sale or significant
delay with capital injection may also prompt a negative rating

BORETS INTERNATIONAL: Moody's Assigns 'B1' CFR; Outlook Stable
Moody's Investors Service has assigned a B1 corporate family
rating and a B1-PD probability of default rating to Borets
International Ltd., one of the leading global independent
manufacturers of electric submersible pumps (ESP) and a provider
of related services. Moody's has also assigned a provisional
(P)B1 rating with a loss given default (LGD) assessment of
LGD4/50% to the proposed debut notes to be issued by Borets
Finance Limited, a wholly owned subsidiary of Borets incorporated
as a limited liability company under the laws of Ireland. The
notes will be guaranteed by Borets' key operating subsidiaries.
The outlook on the ratings is stable. This is the first time
Moody's has assigned ratings to Borets.

"The assigned B1 CFR balances risks related to Borets' fairly
small size, high product and geographical concentration, changes
in the company's shareholding structure and the step-up in its
leverage with the company's historically strong operational and
financial performance and leading position globally in the niche
ESP market, which has proven to be stable with strong growth
potential," says Ekaterina Lipatova, a Moody's Analyst and lead
analyst for Borets.

Ratings Rationale:

The B1 ratings reflect (1) Borets' smaller scale in terms of
assets and revenues relative to global diversified oilfield
services operators; (2) its focus on a single product line (ESP);
(3) competition in the higher-end segment from larger-scale
global players such as Schlumberger, Baker Hughes, and two
relatively strong Russian competitors in the lower-end segment,
as well as from Chinese producers; and (4) the company's limited
(albeit gradually increasing) geographic and customer
diversification relative to its global peers.

More positively, Borets' B1 ratings acknowledge its leading
position in the niche ESP market, with ESP market shares of 36%
in Russia and 15% globally (by value) as of end 2012, driven by
(1) the company's focus on the mass market for ESP, combined with
a high level of vertical integration, economies of scale, and
mechanical engineering expertise, resulting in the competitive
price/quality ratio; (2) the company's business segment being
characterized by fairly high barriers to entry resulting in still
moderate competition; (3) long-established customer
relationships; and (4) an extensive service infrastructure
network in proximity to the Russian main oil-producing areas.

Moreover, the ratings factor in (1) Borets' increasing
geographical diversification, with international business
accounting for 24% of the company's total sales in 2012 (set to
reach 30% in 2013), supported by the successful turnaround of
loss-making international ESP business of Weatherford
International Ltd ("Weatherford", Baa2, negative), acquired by
Borets in 2008; (2) favorable industry dynamics, supported by the
increasing need for oil recovery enhancement technologies due to
maturing wellstock and the rapid development of unconventional
resources; and (3) its historically proved resistance to market
volatility underpinned by the stability of the industry, critical
for production at maturing fields, as well as the high proportion
of its operations that comprises services and maintenance
activities, its strong market position and competitive cost

Borets' ratings also incorporate its buyback of shares currently
held by Weatherford for US$370 million, to be fully financed by
the proposed notes issuance. As a result of the transaction,
close to 100% of Borets will be ultimately controlled by two
individuals (before a potential entrance of the EBRD and / or IFC
as shareholders). Moody's understands that the transaction will
not lead to any adverse impact on Borets's business profile and
international growth potential as the benefits from Weatherford's
shareholding remained minimal. At the same time, there remain
concerns regarding the lack of track record of the company
operating under the new shareholding structure. Borets' ownership
concentration may also result in a deterioration of its corporate
governance standards, including an increase in risks related to
excessive shareholder distributions, related-party transactions
and prudent financial policy. Nevertheless, Moody's notes the
company's explicit commitment to continue to adhere to its
current high standards of corporate governance, while plans of
EBRD and IFC to acquire a 5% and 3% stake in Borets respectively,
if realized, should partly mitigate these risks. In addition, the
share buyback will result in a substantial step-up in Borets'
leverage, with adjusted debt/EBITDA increasing to around 3.4x in
2013, albeit this will gradually decrease to below 3.0x by 2015
on the back of the organic growth of its operations. The increase
in leverage will also be supported by Borets' (1) stable cash
flow generation driven by strong business fundamentals; and (2)
sound liquidity profile, with moderate debt service requirements
until the maturity of the bond.

Structural Considerations

The notes will be issued by Borets Finance Limited, a financing
vehicle established solely for the purposes of the notes
issuance, and guaranteed by Borets International and its
principal subsidiaries, which will provide no less than 80% of
the group's assets and EBITDA. The notes will be general
unsecured and unsubordinated obligations of Borets, ranking pari
passu with all of its other unsecured and unsubordinated
indebtedness. Moody's has rated the notes at the same level as
Borets' CFR to account for the fact that the company has no
secured debt in its capital structure. Moreover, it plans to
prepay all its existing bank loans as part of the buyback

Moody's issues provisional ratings in advance of the final sale
of securities, and these ratings represent only the rating
agency's preliminary opinion. Upon a conclusive review of the
transaction and associated documentation, Moody's will assign
definitive ratings to the bonds. A final rating may differ from a
provisional rating.

Rationale For Stable Outlook

The stable rating outlook reflects Moody's expectation that
Borets will continue to deliver on its operating targets while
preserving a sound liquidity profile and strong market position
under the new shareholding structure.

What Could Change The Rating Up/Down

Moody's would consider upgrading Borets' rating if the company
(1) builds a track record of operating under the new shareholding
structure and maintains sound corporate governance following the
exit of Weatherford; (2) continues to build a track record of
robust operational performance, further increasing the scale of
its operations and geographical diversification of revenues while
maintaining profitability and market share at or above current

Conversely, negative pressure could be exerted on Borets's
ratings as a result of the company pursuing (1) material debt-
financed acquisitions or capital investments that result in
sustainable negative free cash flow; or (2) aggressive debt-
financed dividend payouts to shareholders, or share buybacks or
other substantial shareholder initiatives that result in a
deterioration in financial metrics beyond the company's stated
financial policy. Moody's would also consider downgrading the
ratings in the event of a material deterioration in Borets'
competitive position within its core product lines, or other
related developments, combined with a weakening of financial
metrics. Such a deterioration in metrics would be an increase in
leverage, as measured by adjusted debt/EBITDA, above 4x.

Principal Methodology

The principal methodology used in these ratings was the Global
Oilfield Services Rating Methodology published in December 2009.
Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

Borets International Limited is a leading vertically integrated
manufacturer of artificial lift products for the oil sector,
specializing in the design and manufacture of electric
submersible pumps (ESP) and related products and provision of
related services. In 2012, Borets generated US$743 million in
sales and US$144 million of adjusted EBITDA and reported US$808
million in assets.

BORETS INT'L: S&P Revises Outlook to Neg. & Affirms 'BB' CCR
Standard & Poor's Ratings Services said that it revised its
outlook on British Virgin Islands-registered capital goods
company Borets International Ltd. to negative from stable.  At
the same time, S&P affirmed its 'BB' long-term corporate credit
and 'ruAA' Russia national scale ratings on Borets.

In addition, S&P assigned its 'BB' issue rating to the proposed
US$420 million unsecured notes to be issued by Borets' wholly
owned finance subsidiary Borets Finance Ltd.  The recovery rating
on the proposed notes is '3', indicating S&P's expectation of
meaningful (50%-70%) recovery in the event of a payment default.

The outlook revision follows Borets' announcement of a
US$420 million unsecured notes issuance to finance the buyback of
its minority shareholder Weatherford's 35.6% stake.  The outlook
revision reflects S&P's view that the increase in debt could
weaken Borets' credit metrics more than it anticipates under its
base-case scenario, including Standard & Poor's-adjusted debt to
EBITDA exceeding 3x.  Such weakening could occur if Borets'
earnings and cash flow generation prove insufficient to offset
the increase in debt.

However, S&P continues to anticipate that Borets' operating
performance will remain solid in 2013, maintaining the trend in
recent years.  S&P also anticipates that Borets will generate
positive free operating cash flow (FOCF) of about US$50 million
in 2013.  In addition, S&P forecasts that Borets' credit metrics
will improve from 2013 levels in the next two years as a result
of strong FOCF generation and what S&P anticipates will be a
moderate financial policy, with a focus on deleveraging and no
dividend distributions or significant acquisitions.  S&P
therefore anticipates that Borets' adjusted debt-to-EBITDA ratio
will be close to 2x at year-end 2014, which we still view as
commensurate with the 'BB' rating.

There is a one-in-three chance of a downgrade in the next 12
months if Borets' ability to generate FOCF weakened, for example,
due to declining operating performance, large working capital
swings, or other factors that would prevent Borets improving its
credit metrics to the extent S&P anticipates in its base case.
S&P would also consider lowering the ratings if Borets' ratio of
adjusted debt to EBITDA rose above 3x.

S&P could revise the outlook to stable if Borets continues to
generate significantly positive FOCF in 2013 and 2014, leading to
a gradual improvement in credit metrics.  Such metrics include
adjusted debt to EBITDA of comfortably less than 3x by the end of
2013 and close to 2x at year-end 2014, which S&P considers
commensurate with the 'BB' rating.

DAGESTAN AIRLINES: Declared Bankrupt by Dagestan Court
ATWOnline reports that the Arbitration Court of the Dagestan
Republic has declared the bankruptcy of Dagestan Airlines, more
than a year after Russian authorities withdrew the Makhachkala-
based carrier's air operator's certificate at the end of 2011.

Vestnik Kavkaza, citing, reports that the arbitrary
court of Dagestan has sustained the claim of Mixjet Flight
Support to recognize Dagestan Airlines bankrupt.

The Supreme Arbitrary Court of Russia refused to nullify the
exploitation certificate of the air company in April, Vestnik
Kavkaza relates.  The Russian government handed Dagestan 100% of
shares of the company in April, Vestnik Kavkaza recounts.
According to an agreement with the government of Dagestan, it was
to find at least RUR150 million of investments for reconstruction
and modernization of the company and infrastructure of the
Makhachkala Airport, Vestnik Kavkaza notes.

Dagestan Airlines owns three Tu-154Ms, one Tu-154B-2, two Tu-
134B, one An-24RV, helicopters Mi-8 and Mi-8MTV, Vestnik Kavkaza

OJSC Dagestan Airlines was an airline based at Uytash Airport in
Makhachkala, Dagestan, Russia, operating domestic and
international scheduled and chartered flights.

GAZPROMBANK: Fitch Rates Upcoming Subordinated Notes 'BB-(EXP)'
Fitch Ratings has assigned Gazprombank's potential upcoming debut
subordinated loan participation note (LPN) issue with write-down
features an expected long-term rating of 'BB-(EXP)'. The final
rating of the issue is contingent upon the receipt of the final
documents conforming to information already received.

Key Rating Drivers

Fitch expects to rate Gazprombank's "New-Style" Tier 2
subordinated debt issues one notch lower than the bank's 'bb'
Viability Rating (VR). This includes (i) zero notches for
additional non-performance risk relative to the VR, as Fitch
believes these instruments should only absorb losses once a bank
reaches, or is very close to, the point of non-viability; (ii)
one notch for loss severity (one notch, rather than two, as these
issues would not be deeply subordinated).

The potential upcoming "New-Style" subordinated debt notes would
be issued by an Ireland-based special purpose vehicle, GPB
Eurobond Finance plc, which would on-lend the issue's proceeds to
Gazprombank under a subordinated loan agreement. The notes would
have principal and coupon write-down feature (pro rata with other
loss-absorbing instruments) triggered in case (i) the bank's core
Tier 1 capital adequacy ratio decreases below 2%; or (ii)
bankruptcy prevention measures are introduced in respect to the
bank. The latter is possible as soon as a bank breaches any of
its mandatory capital ratios, or is in breach of certain other
liquidity and capital requirements.

The issue amount and the coupon rate are yet to be determined.
The bank expects the tenor of the LPNs to match the Russian bank
regulator's requirement for the 'New-Style' Tier 2 capital
instruments (minimum five years).

For more details on Fitch's approach on rating subordinated debt
issues of Russian banks see 'Fitch Affirms Russian State-Owned
Banks' Old Sub Debt, Indicates Approach For Rating New Issues'
dated 18 April 2013, and 'Implementation of New Capital Rules in
Russia: Moderately Positive, Unlikely to Lead to Rating Changes',
dated 19 April 2013, at

Rating Sensitivities

The issue's ratings are linked to the bank's VR. Gazprombank's VR
could benefit from a reduction in the bank's loan concentrations,
acquisition finance exposures and non-core assets, combined with
further improvements in capitalization and profitability. A
significant deterioration of the operating environment in Russia,
or weaker performance of the loan book as a whole or some of the
higher-risk exposures could lead to downward pressure on the VR.

Gazprombank's other ratings are unaffected:

Long-term foreign currency IDR: 'BBB-'; Outlook Stable
Long-term local currency IDR: 'BBB-'; Outlook Stable
Short-term foreign currency IDR: 'F3'
National long-term rating: 'AA+(rus)'; Outlook Stable
Viability Rating: 'bb'
Support Rating: '2'
Support Rating Floor: 'BBB-'
Senior unsecured debt long-term local-currency rating: 'BBB-'
National long-term debt rating: 'AA+(rus)'

GPB Eurobond Finance plc's other debt ratings are unaffected:

Senior unsecured debt long-term foreign-currency rating: 'BBB-'
Senior unsecured debt long-term local-currency rating: 'BBB-'
'Old-Style' subordinated debt rating: 'BB+'


BANCAJA 13: Swap Documentation Amendments No Impact on Moody's
Moody's Investors Service announced that an amendment to the swap
documentation would not, in and of itself and as of this time,
result in the downgrade or withdrawal of the notes rating issued
by Bancaja 13, FTA.

The amendment would permit Europea de Titulizacion S.G.F.T.; S.A
acting as management company to modify the Volatility Buffers in
the Credit Support Annex in the swap documentation.

Moody's has determined that the amendment, in and of itself and
at this time, will not result in the downgrade or withdrawal of
the notes rating currently assigned to Bancaja 13, FTA. However,
Moody's opinion addresses only the credit impact associated with
the proposed amendment, and Moody's is not expressing any opinion
as to whether the amendment has, or could have, other non-credit
related effects that may have a detrimental impact on the
interests of note holders and/or counterparties.

The last rating action for Bancaja 13, FTA was taken on April 2,

The principal methodology used in rating and monitoring of this
transaction is "Moody's Approach to Rating RMBS Using the MILAN
Framework", published in May 2013.

Moody's noted that on July 18, 2013, it released a Request for
Comment, in which the rating agency has requested market feedback
on potential changes to its rating implementation guidance for
its "Approach to Assessing Linkage to Swap Counterparties in
Structured Finance Cashflow Transactions" published in July 2013.
If the revised rating implementation guidance is implemented as
proposed, the rating on the Notes should not be negatively

On April 2, 2013, Moody's downgraded the ratings of six junior
and five senior notes in four Spanish residential mortgage-backed
securities (RMBS) transactions: AyT Hipotecario III, FTH, Bancaja
10, FTA, Bancaja 11, FTA and Bancaja 13, FTA. Insufficiency of
credit enhancement to address sovereign risk and deterioration in
collateral performance have prompted the action.

Issuer: Bancaja 13 Fondo De Titulizacion De Activos

  2583.7M A Notes, Downgraded to Baa1 (sf); previously on Jul 2,
  2012 Downgraded to A3 (sf) and Placed Under Review for Possible

  152M B Notes, Downgraded to Ba2 (sf); previously on Nov 23,
  2012 Downgraded to Baa1 (sf) and Remained On Review for
  Possible Downgrade

  159.3M C Notes, Downgraded to B3 (sf); previously on Jul 2,
  2012 Baa3 (sf) Placed Under Review for Possible Downgrade

U N I T E D   K I N G D O M

AQUACULTURE HYDROPONIC: GroWell Buys Firm Out of Administration
Yorkshire Post reports that Aquaculture Hydroponics has been
bought out of administration by a national operator in a deal
which saved five jobs.

The Yorkshire-based firm, which specializes in growing plants in
aquatic based, soilless environments, was placed into
administration in July, according to Yorkshire Post.  Formed in
1996, Aquaculture Hydroponics had previously operated from
premises in Sheffield, Barnsley and Ripley.

However, the report notes that before being placed into
administration, the company closed its Barnsley and Ripley sites,
leaving only the Sheffield facility on Parkway Drive.  The
closure of the sites resulted in 10 people being made redundant,
the report relates.

Administrators from Wilson Field worked with Aquaculture
Hydroponics to restructure its management team and supported its
purchase by the GroWell Hydroponics Group, which has a head
office in Warwick, the report says.

GroWell Hydroponics is a leading supplier of hydroponics and
indoor gardening equipment and has seven shops across the
country. The Sheffield site will be the group's first in

The recoveries team at law firm Irwin Mitchell in Sheffield
advised administrators on the sale of the business, negotiating
and completing the sale on their behalf, the report relays.

"Barclays was the main lender and debenture holder throughout
this process.  In agreeing to the business restructure the bank
suffered a financial loss, but their actions helped save five
jobs," the report quoted Robert Dymond, insolvency practitioner
at Wilson Field, as saying.

APT DESIGN: Consultancy Firm Goes Into Liquidation
-------------------------------------------------- reports that Tim Ball of Mazars in Bristol has
been appointed liquidator of APT Design (SW) Ltd.

The company was founded in 1982 and traded as an architectural
design consultancy, working mainly for property developers and
house builders, discloses.

At its peak, it employed 12 members of staff but had been hit by
the recession causing its margins to be squeezed and turnover to
fall, the report says. notes that the business ceased trading in August
with the remaining four employees made redundant.

"It is sad to see another long established Somerset business in
the construction sector fall victim to ever increasing
competition during this ongoing difficult trading period that we
continue to experience," the report quotes Mr. Ball as saying.

BLITZ GAMES: Placed in Liquidation After 23 Years
Keith Andrew at reports that UK developer Blitz
Games Studios has entered voluntary liquidation after 23 years of
trading, the company has announced.

According to the report, the firm said it made "every effort to
seek avenues for new contracts and external investment" but was
"unable to secure enough funds to sustain the business in its
current form."

Blitz Games Studios was founded by Dizzy series developers
brothers Philip and Andrew Oliver in Leamington Spa in 1990.

Though previously focused on PC, handheld and console, recent
years had seen Blitz turn its attention to smartphones, with the
critically acclaimed Kumo Lumo one of its most recent releases, notes.

LONDON TAXI: Geely Restarts Production of London Black Cabs
John Murray Brown at The Financial Times reports that Geely, the
private Chinese automotive company, on Wednesday restarted full
production of London black cabs, seven months after it took
majority control of Manganese Bronze, the Midlands manufacturer.

In February, Geely paid GBP11 million for the 80% it did not
already own of Manganese Bronze, parent of the London Taxi
Company which has made the famous black cab for 60 years, the FT

The Chinese company, which also owns the Volvo marque, says it
plans to invest an additional GBP150 million to bring the new TX5
taxi model into production, and move to a new larger UK factory,
with three sites currently under consideration, the FT discloses.

The business was put into administration in October 2012,
following problems with a steering box component, making 156
workers, about 60% of its staff, redundant, the FT recounts.

Since the takeover the Chinese owners have increased the
workforce back up to 168, including 15 people who were laid off
last year, the FT notes.

In 2011, the company made 1,100 vehicles, and last year, turned
out 900 before the administration forced production to cease, the
FT discloses.  It plans to be back up to full production of about
2,000 vehicles a year in the next 12 months, and expects to
return to profit this year, the FT states.

RAILCARE: Trainees Kept on by Firm's New Owners
Helen McArdle at the Herald Scotland report that apprentices who
had been training at a historic Scottish railway works when it
went into administration are to be kept on by the new owners.

Sixteen of the eighteen Railcare apprentices have taken up offers
to resume their employment under German-based Knorr-Bremse
RailServices, who took over the company, according to Herald

The report relates that the remaining two apprentices had already
found new work elsewhere.

"My colleagues and I here at Knorr-Bremse RailServices are
delighted that sixteen apprentices have chosen to join us in the
new company and to complete their training here.  I have always
believed in apprenticeships and that we should be encouraging
young people into the company and into the rail industry. . . .
We have one of the finest schemes in the rail industry here as
has been recently recognised with an award, thanks to the efforts
of David Hilliard and his team.   We will now be able to invest
in the highest levels of training for our apprentices and
employees going forward, which benefits us and brings skills into
the UK rail industry," the report quoted Mark Cooper, managing
director of Knorr-Bremse RailServices, as saying.

Railcare, which has bases in both Springburn in Glasgow and
Wolverton near Milton Keynes, went into administration in August.

SIDELL GIBSON: Creditors Tap Baker Tilly as Liquidators
Elizabeth Hopkirk and David Rogers at report that
Sidell Gibson went bust owing GBP2.5 million. says the biggest creditor of the stricken practice
is the firm's bank, Lloyds TSB, which is owed GBP600,000.

A creditors' meeting held in August voted to appoint accountant
Baker Tilly as liquidator with the firm's John Ariel and Matthew
Wild named joint liquidators, the report says.

According to the report, the meeting, held at Baker Tilly's
offices in central London, heard that several firms have
expressed interest in buying all or part of the practice which
carried out the restoration of Windsor Castle after 1992's fire.

In total, 30 staff have been made redundant. All have been paid
in full, apart from the salaried partners. But the GBP2.5 million
owed includes redundancy payments due to the staff, the report
relays. notes that the 40-year-old practice got into
trouble after being hit by delays of a number of projects
including two major London developments and a scheme in Libya.

SKIP HIRE: In Administration Following Two Fires in 7 Months
The Shuttle reports that Skip Hire in Kidderminster has gone into
administration after two major fires hit the firm in seven

Twenty-four employees have been made redundant at the Stourport
Road-based firm and the Forge Recycling facility has been put up
for sale, according to The Shuttle.

The report relates that Mark Orton -- --
and Will Wright -- -- from KPMG's
restructuring practice were appointed joint administrators of the
waste recycling business.

A statement from KPMG said the company became insolvent after its
two fires disrupted operations, the report notes.

The report recalls that the first fire broke out in December last
year and the second fire, which began on Sunday, June 16, took
Hereford and Worcester Fire and Rescue Service seven-and-a-half
weeks to put out.

"During the process of selling this asset and winding down the
company the administrators are ensuring that appropriate measures
are being taken in the aftermath of the fires and are liaising
with the relevant local and national bodies in relation to any
environmental risks," the report quoted a KPMG spokesman as

The report discloses that eight employees are assisting
administrators in the short term.  The administrators are also
marketing the 14 acre Forge Recycling facility, comprising a
factory and office space for sale, the report adds.

ZOO ABS IV: Fitch Affirms 'CC' Rating on Class E Notes
Fitch Ratings has affirmed Zoo ABS IV Plc's notes, as follows:

Class A-1A (ISIN XS0298493072): affirmed at 'BBBsf'; Outlook

Class A-1B (ISIN XS0298495523): affirmed at 'BBBsf'; Outlook

Class A-1R (no ISIN): affirmed at 'BBBsf'; Outlook Stable

Class A-2 (ISIN XS0298496505): affirmed at 'BBsf'; Outlook Stable

Class B (ISIN XS0298496927): affirmed at 'B+sf'; Outlook Stable

Class C (ISIN XS0298497495): affirmed at 'B-sf'; Outlook Stable

Class D (ISIN XS0298498386): affirmed at 'CCCsf'

Class E (ISIN XS0298498972): affirmed at 'CCsf'

Class P (ISIN XS0298626564): affirmed at 'B-sf'; Outlook Stable

Key Rating Drivers

The affirmation reflects levels of credit enhancement (CE)
commensurate with the ratings. The portfolio's credit quality has
remained stable since the previous review in September 2012, but
has experienced slightly negative migration of the ratings of the
underlying assets, as well as a marginal decrease in the levels
of credit protection for the notes.

Assets rated 'CCCsf' or below have increased since September 2012
to 4.8% from 3.7% of the outstanding portfolio balance. The
lowest rated assets are mainly British corporate CDOs and Spanish
and Italian RMBS. One more defaulted asset has been reported over
the year, thus the transaction at the moment inventories EUR8.9
million of defaults.

The portfolio is concentrated in RMBS assets and corporate CDOs,
which represent 63.0% and 22.3% of the portfolio, respectively.
Other assets in the pool are CMBS, commercial ABS, SF CDOs and
consumer ABS. Country wise the two largest concentrations are in
the United Kingdom (45.8%) and Italy (34.2%). The exposure to
peripheral countries is notable as 42.5% of the assets are
located in Italy, Spain, Portugal and Greece.

All the over-collateralization (OC) tests are passing since the
beginning of 2010. OC test cushions have marginally deteriorated
since the previous review. The interest coverage (IC) test has
always been compliant and the cushion has increased.

The notes are currently amortizing pro-rata as long as the OC
tests are compliant and the outstanding portfolio balance stands
above 75% of the target level of EUR500 million. In case any of
the conditions are breached in the future, the notes will
amortize sequentially in order of seniority.

Zoo ABS IV Plc (the issuer) is a cash arbitrage securitization of
structured finance assets.

Rating Sensitivities

Fitch tested the impact on the ratings of bringing the maturity
of the mezzanine assets in the portfolio to their legal maturity,
and this stress would result in a downgrade of the rated notes of
up to one notch.


* 2014 Likely a Turning Point for EMEA Corporates, Fitch Says
Aggregate free cash flow among EMEA corporates should turn
positive in 2014 as revenue and margin figures also show modest
improvement, Fitch Ratings says. Total cash holdings will
probably fall further from their 2012 post-global financial
crisis high, but this will be due to companies using the cash for
debt repayments, rather than a reversal of the conservative
financial policies to combat weak market conditions since the
onset of the crisis.

Fitch says, "In a special report, "EMEA Corporate Cash
Generation: 2014 a Turning Point," published Sept. 11, 2013, we
forecast that improving free cash flow (FCF) in the consumer and
healthcare, telecom media and technology, and industrial sectors
should drive the return to aggregate positive FCF after two years
of negative figures. The turnaround will be driven by a
combination of recent investment in faster-growing emerging
markets and aggressive cost-cutting, also leading to stronger

Anheuser Busch InBev, Roche Holding and Sanofi will be among the
biggest generators of FCF, helped by stable demand in the
healthcare and food retail sectors. Conversely, significant
capital expenditure by transport companies such as JSC Russian
Railways and South Africa's Transnet SOC will contribute to
negative FCF in the utilities and transport sectors, which will
be the main drag on the aggregate figures.

"Our analysis, which discusses over 40 Fitch-rated EMEA
corporates, forecasts total cash holdings to drop by over
USD130bn over 2013 and 2014. This will help pay off around
USD140bn of gross debt, leaving companies' net debt position
largely unchanged from 2012," Fitch says.

"This could change if companies were to implement less cautious
financial policies and delay their debt repayment, for example in
response to shareholder demands or to make the most of improving
market conditions as the eurozone shows early signs of returning
to growth. However, overall we believe that a sustained euro area
recovery remains fragile and that corporates will maintain their
focus on conservative policies and balance-sheet strength in the
short term."

* Hybrid Issuance Not Enough to Remedy Weakness in EUR Utilities
Hybrid issuance is credit positive, but cannot alone remedy
underlying credit weakness, says Moody's Investors Service in a
Special Comment titled "European utilities: Hybrid issuance is
credit positive, but cannot alone remedy underlying credit

"Hybrid issuance is credit positive because it improves a
company's financial flexibility, boosts liquidity and in
favorable market conditions can lower its cost of capital.
However, such positive effects cannot in isolation remedy
underlying credit weakness," said Niel Bisset, Moody's Senior
Vice President and author of the report.

Hybrids are most credit supportive as part of a broader set of
complementary measures designed to underpin a utility's credit
profile. These measures will usually include cutting costs and
capital investment, asset disposals and sometimes equity issuance
to defend a rating.

European utilities issued approximately EUR13 billion of hybrid
securities during the first six months of 2013. This more than
doubled outstanding issuance in the sector and reflects both
receptive markets and issuers' response to negative pressure on
utility ratings.

Moody's expects more issuance while negative pressures on utility
ratings persist, subject to investor demand. Moody's believes
that utilities in Europe, the Middle East and Africa will
continue to utilize hybrids as an essentially defensive source of
funding to reinforce balance sheets in the current challenging
market conditions.

* Fitch Comments on Proposed Regulatory Changes to Money Market
Money market fund (MMF) regulation proposed by the European
Commission on September 4, if adopted, would have far-reaching
implications for the EUR1trn MMF industry and cash investors,
according to Fitch Ratings.

Certain aspects of the regulation should make MMFs less risky
through enhanced liquidity and diversification, consistent with
the practices adopted by conservative funds. As a way to mitigate
the risk of investor runs on MMF, the EC also proposes a move to
full variable-NAV (VNAV) on most funds. The focus on investor
runs is understandable, given the maturity transformation
embedded in MMFs and the high level of redemptions historically
observed in certain MMFs.

The proposal is part of a broader regulatory review of shadow
banking activities. It will apply to all funds established,
managed or marketed in Europe as MMFs and governed by the
Collective Investment in Transferable Securities (UCITS)
directive or Alternative Investment Fund (AIFM) directive. The
proposal will have to be approved by the European Council and
Parliament, which could be a protracted and uncertain process.

The proposed diversification and liquidity limits provide
additional safety to European MMFs relative to existing
guidelines and are also consistent with industry practice and MMF
regulation in the US under Rule 2a-7. Additionally, the proposal
restricts the use of leverage and derivatives, requires that MMFs
put in place a robust process for stress testing and investor
base monitoring, and places restrictions on eligible repo

A key element of the proposal disallows the use of amortized cost
valuation and a constant NAV (CNAV) for MMFs, unless the fund
establishes a 3% cash capital buffer available to absorb losses.
While a 3% capital buffer would provide a material cushion
against losses, it also imposes a significant additional cost to
an MMF or its sponsor (estimated by Fitch at between 15 to 30bps
per annum, assuming the sponsor has the desire to fund such
activities). As a result, it is likely to result in most MMFs
adopting the VNAV framework overall in a low rate environment.

The move to full VNAV accounting is designed to reduce the so-
called 'first mover' advantage of early redemptions that some
believe creates systemic risk. Whether it would accomplish this
goal or not continues to be debated. It is likely that pro-
cyclicality caused by sudden, large-scale redemption activity
will remain a risk. In front of a minor mark-to-market NAV
decline, investors may conclude that a fund is experiencing
difficulties and pre-emptively sell, forcing the fund to dispose
of assets, which would lead to more downward price volatility.

In Fitch's view, redemption risk is influenced by parameters
other than valuation. Fitch's research finds that excluding funds
only invested in treasuries, French VNAV funds and euro-
denominated CNAV were confronted with somewhat similar redemption
pressure in 2008. Approximately 20% of the 100 largest French
MMFs suffered monthly outflows of more than 20% of assets in
September or October 2008. In comparison, around 30% of euro-
denominated CNAV funds suffered similar outflows.

It is possible that certain managers, particularly those that
benefit from a low cost of capital, may decide to offer CNAV
funds with the 3% buffer in combination with VNAV funds. These
CNAV funds essentially would be "bank-type" products that are
structurally safer - at a cost - and continue to provide
diversification and liquidity.

A move to full VNAV may reduce the products' attractiveness for a
number of investors and have implications for MMF operations
(eg.pricing or same day liquidity) and the broader markets. The
ultimate impact would only be known over time, should the
proposal be adopted. Many larger investors in Europe may
ultimately adapt to the new market paradigm, assuming it offers
the same security, liquidity and transparency. With record cash
to invest and low demand from banks for short-term wholesale
deposits, larger investors may have little choice but to continue
using MMFs, even under the new framework. Moreover, the
acceptance of VNAV MMFs varies by country within Europe and as
many as a fifth of MMF investors use both CNAV and VNAV according
to Fitch's European Treasurer Survey 2013 (dated Feb. 26, 2013,

By contrast, many less sophisticated and smaller CNAV investors
may determine that the required changes to their internal
processes are disproportionately expensive and abandon MMFs as a
cash management tool. Fitch's treasurer survey shows that a move
to VNAV would make the product less attractive as it would lose
its simple tax and accounting treatment, and potentially daily
liquidity. 50% of CNAV investors interviewed by Fitch cite their
simple tax and accounting treatment as a strength.

* BOOK REVIEW: Carter Pate and Harlann Platt's The Phoenix Effect
Authors: Carter Pate and Harlann Platt
Publisher: John Wiley & Sons, Inc.
Softcover: 244 Pages
List Price: $27.95
Review by Gail Owens Hoelscher

Buy a copy for yourself and one for a colleague on-line at
Think of all the managers of faltering companies who dream of
watching those companies rise from the ashes all around them!
With a record number of companies failing in 2001, and another
record-setting year expected for 2002, there are a lot of ashes
from which to rise these days.

Carter Pate and Harlan Platt highly value strong leadership able
to sharpen a company's focus and show the way to the future.
They believe that all too often, appropriate actions required to
improve organizations are overlooked because upper management
either isn't aware of the seriousness of the issues they face or
they don't know where to turn for accurate information to best
address their concerns. In the Phoenix Effect, the authors
present their ideas to "confront, comprehend, and conquer a
company's ills, big and small."

These ideas are grouped into nine steps: (i) Find out whether
the company needs a tune-up, a turnaround, or crisis management.
Locate the source of "the pain." (ii) Analyze the true scope of
the company's operations. Decide whether to stay in the same
businesses, withdraw from existing businesses, or enter new
ones. (iii) Hold the company to its mission statement. If it
strives to be "the most environmentally friendly." Figure out
how. (iv) Manage scale. Should the company grow, stay the same
size, or shrink? (v) Determine debt obligations and work toward
debt relief. (vi) Get the most from the company's assets.
Eliminate superfluous assets and evaluate underused assets.
(vii) Get the most from the company's employees. Increase output
and lower workforce costs. (viii) Get the most from the
company's products. Turn out products that are developed and
marketed to fill actual, current customer needs. (ix) Produce
the product. Search for alternate ways to create the product:
owning or leasing facilities, outsourcing, etc.

The authors believe that "how you're doing is where you're
going." They assert that the "one fundamental source of life in
companies, as in people,.is the capacity for self-renewal, the
ability to excite your team for game after game. to go for broke
season after season." This ability can come from "(g)enetics,
charisma, sheer luck, stock options - all crucial, yes, but the
best renewal insurance is a leader who always knows exactly how
his or her company is doing."

There are a lot of books written on this topic. Pate and Platt
successfully bridge the gap between overgeneralization and too
detail. They are equally adept at advising on how to go about
determining a business's scope and arguing for Monday rather
than Friday for implementing layoffs. They don't dwell on sappy
motivational techniques. They don't condescend to the reader or
depend too much on folksy vernacular and clich,. Their message
is clear: your company's phoenix, too, can rise from its ashes.
* Carter Pate is a well known turnaround expert at
PricewaterhouseCoopers with more than 20 years experience
providing strategic consulting and implementation strategies.
* Harlan Platt is a professor of finance at Northeastern
University and author of the book Principles of Corporate


Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets.  At first glance, this list may look
like the definitive compilation of stocks that are ideal to sell
short.  Don't be fooled.  Assets, for example, reported at
historical cost net of depreciation may understate the true value
of a firm's assets.  A company may establish reserves on its
balance sheet for liabilities that may never materialize.  The
prices at which equity securities trade in public market are
determined by more than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to

Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals.  All titles are
available at your local bookstore or through  Go to order any title today.


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-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez,
Joy A. Agravante, Ivy B. Magdadaro, Frauline S. Abangan and Peter
A. Chapman, Editors.

Copyright 2013.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000 or Nina Novak at

                 * * * End of Transmission * * *