TCREUR_Public/131218.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

         Wednesday, December 18, 2013, Vol. 14, No. 250



BEE FIRST FINANCE: Fitch Rates EUR6.7MM Class D Notes 'BB+'


TAURUS CMBS: Fitch Affirms 'Csf' Rating on Class D Notes
TECHEM GMBH: Fitch Affirms 'BB-' LT Issuer Default Rating


HUNGARIAN EXPORT: Fitch Affirms 'BB+' Issuer Default Rating
OTP BANK: Fitch Affirms 'BB' LT Issuer Default Rating


ICELAND: Central Bank to Begin Selling Failed Banks' Bonds
ORKUVEITA REYKJAVIKUR: Moody's Affirms 'B1' Issuer Rating


HOMEBASE HOUSE: Gets Cash Injection as it Exits Examinership
IRELAND: Troubled Banks Significant Threat to Economic Recovery
IRELAND: Banks Appoint Receivers to Collect Rents
TV3: Doughty Hanson Selected to Buy Firm Loans


LECTA SA: Moody's Cuts CFR to B2 & Changes Outlook to Stable


MOLDOVA: Opposition Seeks to Stop Liquidation


CLARE ISLAND: Moody's Affirms B3 Ratings on Two Note Classes
DUTCH MBS XVII: Fitch Affirms 'B' Ratings on Class E Notes


KURSK REGION: Fitch Affirms 'BB+' Long-Term IDRs; Outlook Stable


SLOVENIA: Finance Minister Draws Up Plan to Avoid Int'l Bailout


DOMETIC GROUP: Moody's Changes Outlook on Caa1 CFR to Positive


YUKSEL INSAAT: Fitch Lowers IDR & Unsecured Notes Rating to 'CC'


PRIVATBANK: S&P Assigns 'B-/C' Counterparty Credit Ratings

U N I T E D   K I N G D O M

BLOCKBUSTER UK: To Close Remaining Stores
DECO 11-UK: Fitch Lowers Rating on Class B Notes to 'Csf'
FLAMBARDS: Reinstates Staff Who Were Laid Off
GERALD DAVID: Some Shops Saved in Insolvency Deal
GLOBAL MEDIA: Placed into Provisional Liquidation

MAGYAR TELECOM: S&P Raises Corporate Credit Rating to 'CCC+'
RAM ACTIVE: Faces Liquidation if Creditor Deal Negotiation Fails
RSA INSURANCE: Mulls Sale of Peripheral Operations
SCOOT COAL: No More Money Left if Forced to Follow SEPA Licenses
SPREAD EAGLE: Goes Into Administration

VISTEON UK: MPs to Debate Workers' Pensions Campaign


* Fitch Takes Rating Actions on European Synthetic CDOs
* Fitch Says Credit Profiles of EMEA E&C Issuers Stronger



BEE FIRST FINANCE: Fitch Rates EUR6.7MM Class D Notes 'BB+'
Fitch Ratings has assigned Bee First Finance S.A. - Compartment
Edelweiss 2013-1's notes the following final ratings:

  EUR232.5m Class A notes, due January 2022: 'AAAsf'; Outlook

  EUR18.4m Class B notes, due January 2022: 'Asf'; Outlook Stable

  EUR9.3m Class C notes, due January 2022: 'BBBsf'; Outlook

  EUR6.7m Class D notes, due January 2022: 'BB+sf'; Outlook

The transaction is a one-year revolving securitization of vehicle
lease receivables originated in Austria by EBV Leasing GmbH & Co.
KG (EBV), ultimately owned by Erste Bank Group AG (Erste Bank,

Key Rating Drivers:

Lessee Credit Risk
Fitch has assumed a base case default rate of 2.8% and applied
default multiples of 6.8x in a 'AAAsf' scenario, 4x in 'Asf',
2.9x in 'BBBsf' and 1.8x in 'BB+sf', primarily reflecting the
presence of balloon risk, the revolving nature of the pool and a
concentration towards employees of Erste Bank and Vienna
Insurance Group. Fitch set its recovery base case at 67.7%,
applying haircuts of up to 45% in 'AAAsf'.

Revolving Period Additional Risk
The transaction envisages a one-year revolving period. Fitch
considers that the early amortization triggers, along with the
eligibility criteria and available credit enhancement, mitigate
the risk added by the revolving period. The agency analyzed
potential changes in the pool composition during this period and
assumed a shift towards a more risky -- considering Fitch's loss
assumptions -- composition.

Limited Residual Value Risk
The lessee's right to return the vehicles at maturity, in lieu of
settling balloon payments, exposes the issuer to residual value
(RV) risk. However, these rights are restricted under the lease
contracts. Additionally, if a lessee exercises this right, it
remains liable for 75% of any RV loss incurred. In Fitch's
opinion, the RV risk therefore lies largely with lessees,
exposing the transaction to balloon risk when obligors are faced
with stressed economic circumstances and limited re-financing

Stable Asset Outlook
Fitch expects the repayment abilities of Austrian consumers to
remain stable, based on flat unemployment rates (4.7% expected
throughout 2014), an improvement in GDP growth (1.4% forecasted
for 2014, up from 0.4% in 2013) and stable interest rates.

Transaction Characteristics:

Key Counterparties
EBV, the originator, will continue to service the portfolio. EBV
belongs to the Erste Bank Group and Erste Bank acts as back-up
servicer from closing. Additionally, PwC Transaction Services is
appointed as servicer facilitator, in case Erste Group Bank is
unable to take over the servicing activity upon servicer

HSBC Bank plc (AA-/Stable/F1+) provides an amortizing liquidity
facility (LF) sized at 1.6% of the collateral balance. The LF
will cover senior expenses and interest payments on all the
classes of notes.

The issuer entered into a fixed-floating interest rate swap with
Erste Bank to hedge the interest rate mismatch between the fixed-
rate assets in the portfolio (16.2% of the initial portfolio) and
the floating-rate notes.

Portfolio Features
As of December 2013, the securitized portfolio included 21,906
variable- (83%) and fixed-rate (17%) monthly-paying lease
receivables originated by EBV to Austrian private (42%) and
commercial (58%) obligors for the purchase of new (64.1%) and
used/demo vehicles (35.9%). The weighted-average (WA) seasoning
of the pool and the WA remaining term were about 25 and 34
months, respectively.

The lease claims were purchased by the issuer at their net
present value, which is the sum of all scheduled principal
payments over the lease term discounted at the contractual yield
on the lease minus a security deposit (Kaution).

Credit Enhancement (CE)
The transaction features a principal deficiency ledger (PDL)
mechanism for each class of notes, according to which certain
interest funds will be allocated to the principal waterfall in an
amount implicitly equal to the receivables classified as
defaulted in a given period, with debiting starting from the
class D PDL. Hence, excess spread provides the first layer of
protection against losses, with a minimum weighted-average margin
of 2.45% over three-month EURIBOR (or the swap rate for fixed-
rate loans) being guaranteed during the revolving period.

The class A, B, C and D notes will be redeemed sequentially. This
mechanism ensures that potential losses will be first allocated
to the junior notes, providing CE to the more senior ones.

Additionally, a static cash reserve, funded at closing by the
originator through a subordinated loan, equal to 1.25% of the
portfolio balance, will provide CE by covering for any unpaid

Initial CE is thus 14.14% for the class A, 7.24% for the class B,
3.76% for the class C, and 1.25% for the class D.

Rating Sensitivities:

The rating of the class D notes cannot exceed Erste Group Bank's
Issuer Default Rating (IDR). This is due to the exposure of up to
5% of the portfolio to Erste Bank's employees. In addition, Fitch
has used the contractual servicing/back-up servicing fee of 20bp
in its modelling for the lower rating categories (instead of its
normal servicing fee assumption of 70bp) as in such scenarios the
agency assumes that Erste Bank will perform its obligations. For
those reasons, significant changes to Erste Bank's IDR may lead
to changes to the ratings of the class D notes.

Unexpected increases in the default rate and loss severity on
defaulted loans could produce loss levels higher than the base
case and could result in potential rating actions on the notes.

Rating Sensitivity to Increased Default Rate Assumptions
Class A/Class B/Class C/Class D
Current default base case: 'AAAsf'/'Asf'/'BBBsf'/'BB+sf'
Increase in default rate base case by 10%: 'AA+sf'/'Asf'/'BBB-
Increase in default rate base case by 25%: 'AAsf'/'A-sf'/'BBB-
Increase in default rate base case by 50%: 'AA-sf'/'BBB+sf'/'BBB-

Rating Sensitivity to Reduced Recovery Rate Assumptions
Class A/Class B/Class C/Class D
Current recovery rate (RR) base case:
Reduce RR base case by 10%: 'AA+sf'/'Asf'/'BBB-sf'/'BBsf'
Reduce RR base case by 25%: 'AA+sf'/'A-sf'/'BBB-sf'/'BB-sf'
Reduce RR base case by 50%: 'AAsf'/'BBB+sf'/'BBB-sf'/'Bsf'

Rating Sensitivity to Multiple Factors
Class A/Class B/Class C/Class D
Current base case assumptions: 'AAAsf'/'Asf'/'BBBsf'/'BB+sf'
Mild stress: Increase in default rate by 10%, reduce recovery
rate by 10%: 'AA+sf'/'A-sf'/'BBB-sf'/'BBsf'
Moderate stress: Increase in default rate by 25%, reduce recovery
rate by 25%: 'AA-sf'/'BBB+sf'/'BBB-sf'/'Bsf'
Severe stress: Increase in default rate by 50%, reduce recovery
rate by 50%: 'Asf'/'BBB-sf'/'BBsf'/'CCC to D'


TAURUS CMBS: Fitch Affirms 'Csf' Rating on Class D Notes
Fitch Ratings has affirmed Taurus CMBS Germany (2006-1) plc, as

  EUR133.2m class A (XS0257712579) affirmed at 'BBsf'; Outlook
   revised to Negative from Stable

  EUR29.9m class B (XS0257714435) affirmed at 'CCCsf'; Recovery
   Estimate (RE) 30%

  EUR18.8m class C (XS0257715242) affirmed at 'CCsf'; RE0%

  EUR16.6m class D (XS0257715838) affirmed at 'Csf'; RE0%

Key Rating Drivers:

The affirmation is driven by the full repayment of the Hanse
Centre and Edam-Ruhr loans and the performance of the three
remaining loans, which is in line with previous expectations. The
revision of the Outlook on the class A notes to Negative reflects
the short time to legal final maturity of the notes in April
2015. The remaining loans in the portfolio may face protracted
work-outs with uncertainty over recovery prospects, mainly due to
their letting situation. A sale of all three assets within the
next 16 months is therefore considered challenging.

The Bewag loan (EUR114m, 58% of the outstanding pool balance) is
secured by a single-let office building located in Berlin,
Germany. Due to the collateral's secondary location and quality,
the loan is highly exposed to occupational risk, with the sole
tenant, Vattenfall AB (A-/Stable), on a lease expiring in October
2017. Additionally, the property suffers from a high level of
over-rentedness with the current rental income representing 137%
of the estimated rental value. Fitch believes this asset is
unlikely to attract investors' interest and expects the loan to
suffer significant losses.

The Norman (Bremen) loan is secured by a shopping centre in
Vegesack, near Bremen, Germany. The borrower is going through
insolvency proceedings as the B-note lenders did not agree to the
terms of a loan extension at loan maturity in October 2010. The
servicer is marketing the property for sale, as the bidders from
the initial marketing process chose not to purchase the property
for various reasons. Since the last review in January 2013, the
vacancy has increased to 26% from 13%. The deteriorating income
profile, in absence of strong retail space demand for secondary
German locations, acts to supress market value and limit future

The Walzmuhle loan defaulted at maturity in January 2013 and was
transferred to special servicing. The loan's collateral comprises
a two-storey multi-let shopping centre located in Ludwigshafen.
The shopping centre is anchored by Metro AG (BBB/Negative), which
provides 80% of the income on a lease expiring in December 2019.
The secondary location of the assets combined with 50% of
physical vacancy makes difficult to attract new tenants and
potential buyers.

In Fitch's opinion, a sale of the Bremen and the Bewag properties
would most likely see the complete write-down of the class C and
D notes and a partial write down of the class B notes. Following
the default of the Bewag loan in April 2013 the principal
repayment of the notes has turned to sequential.

Rating Sensitivities:

In the event of a sale, Fitch estimates 'Bsf' net property
proceeds of approximately EUR142 million. If the sales proceeds
fall short of expected or the sales do not occur during the next
year, this could lead to negative rating action on the notes.

TECHEM GMBH: Fitch Affirms 'BB-' LT Issuer Default Rating
Fitch Ratings has affirmed Germany-based sub-metering business
Techem GmbH's Long-term Issuer Default Rating (IDR) at 'BB-'. The
Outlook is Stable. The senior secured loans and EUR410 senior
secured notes have also been affirmed at 'BB' and the EUR325
million subordinated notes issued by Techem Energy Metering
Service GmbH & Co KG at 'B'.

The affirmation reflects Fitch's forecasts that FFO adjusted
leverage and FFO interest coverage should be sustained at below
6x and above 2x respectively. This is based on continued low
single digit revenue growth in the core German Energy Services
market and faster potentially low double digit revenue growth in
international energy services. Current high EBITDA margins are
forecast to be only slightly impacted by lower margins in
international energy services and energy contracting expansions.
Combined with modest capital expenditure this leads to
potentially strong free cash flow generation. De-leveraging would
however be tempered by potential dividends payments from FYE15
onwards, with the cash sweep mechanism leading only to modest
debt reductions.

Key Rating Drivers:

German Market Leader
Techem is the global number two in the niche sub-metering market,
behind Ista. Fitch expects Techem to continue to diversify from
its leading position in the consolidated, mature and slow growing
German energy services market. This is expected through growth in
international energy services, as well as from cross-selling of
energy contracting.

Revenue Supported by Regulation
Market demand for fair consumption-based billing drives demand.
While EU and national regulations support this demand, they do
not regulate the prices in Techem's core energy services business
(FY13 78% revenue/90% EBITDA). The EU Energy Efficiency directive
will likely continue to drive high growth in International Energy
Services, particularly in less mature markets, such as Italy.
Energy contracting, while unregulated, benefits from the EU
directive on energy performance in buildings.

Stable Revenue Base
Techem's stable revenue base is due to long-term contracts
averaging around 10 years, customer churn rates of less than 5%
and increasing recurring rent from metering devices as opposed to
sales. Combined with the relatively high barriers to entry, based
on billing systems and the installed metering base, this leads to
stable revenue and market share.

Non-cyclical Business Model
Techem is in some ways similar to utility businesses, however it
benefits from lower capital expenditure compared with
distributors of gas and water, and is not exposed to commodity
prices compared with suppliers. Consumer default risk and price
sensitivity are low, as the bulk of customers are housing
administrations and landlords of multiple dwellings and prices
are part of the energy bill that tenants pay.

High Leverage
FFO adjusted leverage at 6x is high for the rating level,
notwithstanding the reduced business risk. Through a combination
of debt reduction and FFO growth, Fitch estimates credit
protection measures should strengthen within two to three years,
with FFO adjusted leverage declining towards 5.5x and FFO
interest cover rising to around 2.5x.

Adequate Liquidity
Cash and cash equivalents of the restricted group (excluding the
unrestricted subsidiary GWE) were EUR42.3 million at September
2013. This excludes the EUR26 million held in a restricted
account for potential tax claims resulting from outstanding tax
audits. Additional liquidity is from EUR30 million availability
from the EUR50 million capex and acquisition facility and a
further EUR33.5 million available under the EUR50 million
revolving credit facility.

While debt facilities are all bullet, the excess cash flow sweep
and potential dividend payment if the lock up test is passed
could lead to significant cash outflow. However, the lock-up test
should ensure adequate forward-looking liquidity.

Rating Sensitivities:

Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
FFO adjusted leverage at or above 6x or FFO interest coverage
below 2x over a sustained period due to a significant decline in
profitability versus Fitch's expectations could lead to negative
rating action.

Positive: Future developments that may, individually or
collectively, lead to positive rating action include:
Positive rating action could be driven by further improvement in
operating profitability through organic business growth,
accelerated debt prepayment that reduces FFO adjusted leverage to
below 4.5x on a sustainable basis, together with FFO interest
coverage greater than 3x.


HUNGARIAN EXPORT: Fitch Affirms 'BB+' Issuer Default Rating
Fitch Ratings has affirmed Hungarian Export Import Bank's (Hexim)
and MFB Hungarian Development Bank Plc's (MFB) Long-term Issuer
Default Ratings (IDR) at 'BB+' with Stable Outlook.

Key Rating Drivers:

The rating affirmations reflect what Fitch views as a moderate
probability of state support for both banks if required. The
agency believes that the government's propensity to support Hexim
and MFB is strong. However, its ability to provide support is
moderate, as reflected in the sovereign ratings (BB+/Stable).
Hexim and MFB are 100% state-owned banks, shareholder rights are
exercised by the Ministry for National Economy and the Minister
of National Development, respectively.

Fitch's view of support for both banks reflects their strategic
policy role to support Hungarian exports (Hexim) and domestic
economic growth (MFB), full state ownership and state guarantees
for both banks. Fitch also takes into consideration dedicated
legal acts (separate for each bank) that governs their tasks,
scope of activities and relationship with the state. The state
injected fresh capital into MFB in 2011 and plans to raise
capital at Hexim in 2014. Both banks received short-term bridge
financing from the state in 2011 (MFB) and 2012 (Hexim).

The Eximbank Act sets out that the state will take ultimate
responsibility for Hexim's on- and off-balance-sheet liabilities
up to HUF1,200 billion (about EUR4 billion) and HUF350 billion,
respectively. MFB's repayment risk (on issued bonds and loans) is
covered by a special statutory suretyship up to HUF1,800 billion
(about EUR6 billion). Both banks are not allowed to raise debt
above these limits and are required to seek approval from the
relevant Ministry for all major borrowings

Limits for both banks are defined each year in the central
government budget act and will most likely remain unchanged for
2014. The combined limits of HUF3.35 billion represent a
potentially material, but manageable, contingent liability for
the state, equal to about 11.5% of forecast 2013 GDP. Fitch does
not expect both banks to fully utilize their guarantees limits
over the medium-term.

Both banks plan to source their medium- and long-term funding
primarily from international markets. In October 2013, Hexim
placed a EUR400 million (about HUF120 billion) five- and a half-
year bond, of which 95% was guaranteed by the Multilateral
Investment Guarantee Agency (MIGA, a member of the World Bank
Group). MFB raised US$750 million (HUF164 billion) through a
senior unsecured bond, maturing in 2020.

Rating Sensitivities:

MFB's and Hexim's ratings are equalized with those of the
sovereign and consequently are sensitive to changes in the
Hungarian sovereign ratings. Fitch believes that the state's
strong propensity to support both banks is unlikely to change in
the foreseeable future.

The rating actions are as follows:

Long-term IDR: affirmed at 'BB+'; Outlook Stable
Short-term IDR: affirmed at 'B'
Support Rating: affirmed at '3'
Support Rating Floor: affirmed at 'BB+'
Senior unsecured debt long-term rating: affirmed at 'BB+'
Senior unsecured debt short-term rating: affirmed at 'B'

Long-term IDR: affirmed at 'BB+'; Outlook Stable
Short-term IDR: affirmed at 'B'
Support Rating: affirmed at '3'
Support Rating Floor: affirmed at 'BB+'
Senior unsecured debt long-term rating: affirmed at 'BB+'

OTP BANK: Fitch Affirms 'BB' LT Issuer Default Rating
Fitch Ratings has affirmed Hungary-based OTP Bank Plc's (OTPH)
Support Rating at '3' and Open Joint Stock Company OTP Bank's
(OTPR; OTPH's Russian subsidiary) Long-term Issuer Default Rating
(IDR) at 'BB' with a Stable Outlook. At the same time, the agency
downgraded OTPR's Viability Rating to 'b+' from 'bb-'.

Key Rating Drivers - OTPH'S Support Rating:

The affirmation of OTPH's Support Rating reflects Fitch's opinion
that the Hungarian government would likely have a high propensity
to support OTPH if needed, in light of its systemic importance in
the banking sector. However, Fitch believes that OTPH is unlikely
to require such support in the short- to medium-term. At end-
3Q13, OTPH was the largest bank in Hungary and accounted for 26%
of sector assets and 27% of retail deposits.

Rating Sensitivities - OTPH's Support Rating:

OTPH's Support Rating could be upgraded or downgraded if there is
a multiple-notch upgrade or downgrade of the Hungarian sovereign
rating. However, Fitch currently views this as unlikely.

Key Rating Drivers - OTPR's IDRs, National Rating and Support

OTPR's Long- and Short-term IDRs and Support Rating are driven by
potential support from OTPH, in case of need. Fitch believes that
the parent would have a high propensity to support OTPR in light
of its majority ownership, high level of integration, and the
Russian subsidiary's still material, albeit reduced, contribution
to the group's results (9% of group's 9M13 profit before tax).

Key Rating Drivers - OTPR's VR:

The downgrade of OTRP's VR to 'b+' from 'bb-' reflects (i) a more
challenging operating environment, which has translated into
larger-than-expected credit losses and markedly reduced
resilience to their further increase; (ii) weak performance
relative to peers, and (iii) considerable decline of regulatory
capitalization. At the same time, the rating considers OTPR's
still solid pre-impairment results and comfortable liquidity.

The NPL (non-performing loans, 90 days overdue) origination rate
(defined as the difference in NPLs plus written off loans during
the period divided by the average performing portfolio) on OTPR's
retail loans increased sharply to 18.2% (annualized) in 9M13 (up
from 12.5% in 2012). This represents a higher loss rate than at
most peers.

Positively, the most recently granted loans suggest some
stabilization, albeit at a still elevated level, of default
rates. Early warning indicators such as first- and second-
payment-default statistics show moderate asset quality
improvement following the tightening of loan approval criteria.
However, the sustainability of these trends in a slowing economy
with a growing household debt burden is uncertain.

Fitch no longer considers OTPR's capitalization to be a clear
rating strength. Although OTPR's Fitch Core Capital (FCC) ratio
was a solid 23% at end-3Q13, Fitch views the bank's capital
position in the context of elevated credit risks, modest internal
capital generation (annualized ROAE of 7.5% in 9M13) and tight
regulatory capital. The regulatory capital adequacy ratio
decreased by 300bps during 9M13 and was a moderate 13.2% at end-
3Q13, largely due to higher provisioning requirements and more
stringent, recently introduced risk-weights on newly-issued high-
yield unsecured retail loans. A potential further increase in
risk weights, combined with portfolio regeneration, may lead to
further pressure on regulatory capitalization. As moderate
mitigating factors, some reduction in OTPR's risk appetite and
more conservative growth rates should support the bank's capital

OTPR is mainly funded with locally sourced customer accounts (73%
of end-3Q13 liabilities, retail funding comprised 65% of total
deposits). Liquidity risk is moderate, mitigated by the bank's
large liquidity cushion, which covered 28% of customer funding at
end-3Q13, and fast loan turnover (monthly loan repayments equal a
further 9% of end-3Q13 deposits).

Rating Sensitivities - OTPR's IDRs, National Rating and Support

OTPR's ratings could be upgraded or downgraded based on parent
support if OTPH's credit profile improves or deteriorates. The
ratings could also come under pressure from evidence of a
weakening propensity by OTPH to provide support, although Fitch
views this as unlikely at present.

Rating Sensitivities - OTPR's VR:

Downward pressure on OTRP's VR could come from further asset
quality deterioration and/or capital erosion. Moderation of
credit risks resulting in higher profitability and capitalization
would be credit-positive.

Key Rating Drivers and Sensitivities - OTPR's Senior Unsecured

OTPR's senior unsecured debt is rated in line with its Long-term
IDR. Any changes to the bank's Long-term IDR would thus impact
the ratings of these instruments.

The rating actions are as follows:

Support Rating: affirmed at '3'

Long-Term Foreign Currency IDR: affirmed at 'BB', Outlook Stable
Short-Term Foreign Currency IDR: affirmed at 'B'
Long-Term Local Currency IDR: affirmed at 'BB', Outlook Stable
National Long-Term Rating: affirmed at 'AA-(rus)', Outlook Stable
Viability Rating: downgraded to 'b+' from 'bb-'
Support Rating: affirmed at '3'
Senior unsecured debt long-term rating: affirmed at 'BB'


ICELAND: Central Bank to Begin Selling Failed Banks' Bonds
Niklas Pollard at Reuters reports that Iceland's central bank
said on Monday it will begin selling just over ISK100 billion
(US$8.6 billion) worth of bonds held against assets and claims
left with it as the nation's banks collapsed during the global
financial crisis.

According to Reuters, the bank said in a statement on its website
that the sale of the indexed bonds by the Central Bank of Iceland
Holding Company ehf (ESI) would begin within the next six months
and be carried out in stages over five years.

Sedlabanki took over assets left with it as collateral when the
country's three main commercial banks -- Kaupthing, Landsbanki
and Glitnir -- collapsed under the weight of massive debts in
2008, forcing Iceland to seek aid from the International Monetary
Fund (IMF), Reuters recounts.

The assets, along with general claims against the estates, were
later transferred to ESI with the goal of eventually selling them
and unwinding the holding company, Reuters discloses.

ESI, Reuters says, now plans to establish investment funds to
hold the assets which will in turn issue bonds to be listed on
the NASDAQ OMX Iceland exchange.  Reuters notes that the bank
said initially ESI will own all the bonds but will gradually sell
them off over the coming years.

Sedlabanki said in a separate statement the sales would be made
in consultation with the governors of the central bank and be
monitored closely as they could affect the liquidity of financial
institutions as well as the broader financial system, Reuters

ORKUVEITA REYKJAVIKUR: Moody's Affirms 'B1' Issuer Rating
Moody's Investors Service has affirmed the B1 issuer rating of
Orkuveita Reykjavikur (OR, also known as Reykjavik Energy) and
changed the rating outlook to stable from negative.

Ratings Rationale:

Moody's rating affirmation and stabilization of the outlook
recognizes OR's improved access to liquidity and the progress the
company has made with regard to strengthening its financial
profile over the past two years.

OR's credit profile has improved owing to the company's strict
implementation of a five-year plan approved by the board of
directors in March 2011. The plan aims to turn around the
company's operations so that it can continue to provide its
services as a public utility. Owing to a very strong management
commitment, the company has outperformed on its targets regarding
items controllable by management, which include reducing costs
and investments as well as postponing certain investments. As
previously cautioned by Moody's, the biggest challenge for OR has
been around executing asset sales given that these are not
directly under management control. Albeit with a delay, OR has
now managed to complete the sale of assets for a total of ISK7.4
billion (EUR46 million), which is close to the company's target
of ISK8.1 billion (EUR50 million) set for the years 2011-13.

OR's liquidity has also improved owing to the company's execution
of a number of medium-term bank facilities and hedging
agreements. These agreements give the company greater visibility
over funding and help to protect it from volatility in commodity
and financial markets.

The company's financial profile has strengthened as a result of
the consistent implementation of tariff increases and cost
discipline. Whilst the exchange rate risk remains high due to a
significant mismatch between OR's revenues and debt, the company
managed to reduce its debt burden to ISK207 billion (EUR1.3
billion) as of end-September 2013 from ISK231 billion (EUR1.4
billion) at end-2012.

Moody's notes that the unbundling process, which is to be
completed by January 1, 2014, does not affect OR's rating.
Separation of the competitive and regulated activities will not
result in the group exhibiting a different business or financial
risk profile. OR will remain a parent company for the group and
the main borrower. Future funding will be raised at the parent
company with the only exception related to OR's fibre optic
business, which is, however, very small in the context of the
group's finances. Given that virtually all of OR's debt will be
raised by the parent company and downstreamed to the operating
companies via intercompany loans, there should be no issue of
structural subordination to OR's creditors.

OR is a partnership and under its governing act the partners --
the City of Reykjavik, which owns 93.5% of OR, and two other
municipalities, the Municipality of Akranes and the Municipality
of Borgabyggd, which have stakes of 5.5% and 1% respectively --
are responsible for all the company's liabilities in proportion
to their shareholding (a "guarantee of collection"). The
company's B1 rating incorporates two notches of uplift for
potential extraordinary support to the company's baseline credit
assessment (BCA) -- a measure of standalone credit strength -- of

OR's rating factors in positively (1) the company's strategic
importance to Reykjavik, and Iceland more broadly, given that the
company provides essential utility services to more than 70% of
the Iceland's population and (2) the high proportion of OR's
activities that are regulated, which account for around 60% of
the company's EBITDA. The rating is, however, constrained by (1)
OR's still high financial leverage; (2) its exchange rate risk;
(3) the company's exposure to aluminium prices; and (4) its
limited financial flexibility with regard to liquidity, given the
company's very substantial debt (ISK207 billion, or EUR1.3
billion, as of end-September 2013).

Rationale for Stable Outlook:

The stable rating outlook reflects Moody's expectation that OR
will continue to prudently manage its financial and liquidity

What Could Change the Rating Up/ Down:

Moody's could consider an upgrade if (1) OR continued to
demonstrate its access to debt markets and ability to withstand
significant volatility in commodity and financial markets, and
(2) the company's funds from operation (FFO)/ debt ratio was
above 10% on a sustainable basis. This would also assume no
changes to the support from the owners assumption incorporated
into OR's rating.

Conversely, Moody's could downgrade OR's rating if it appears
likely that the company's currently available bank lines are not
sufficient to insulate it from market risks, particularly in
relation to exchange rates, interest rates or aluminium prices.
The rating would also come under downward pressure if (1) there
were delays in the execution of the five-year plan, which would
result in increased funding requirements; and (2) the company
were not able to raise debt in the domestic or international

OR is the largest multi-utility in Iceland providing electricity,
hot water, heating, cold water and waste services to more than
70% of the Icelandic population. It is Iceland's second-largest
electric utility after Landsvirkjun. As at fiscal year ending
2012, the company had revenues of ISK38 billion (EUR235 million).


HOMEBASE HOUSE: Gets Cash Injection as it Exits Examinership
John Mulligan at Irish Independent reports that the Irish unit of
Homebase got a EUR3.4 million shot in the arm to prop up the
business as it exited examinership.

New company filings show that Homebase House and Garden Centre
received the cash from related British firms, Irish Independent

The Homebase operation was placed in examinership in the summer,
following similar moves by rivals in Ireland including B&Q, owned
by Kingfisher, and Atlantic Homecare, part of the Grafton Group,
Irish Independent recounts.

Entering examinership has given the Irish Homebase unit time to
renegotiate rents at its outlets, Irish Independent notes.  It
initially planned to close three of its 15 outlets here,
including one at Fonthill in Dublin, another in Carlow and one in
Castlebar, Co Mayo, Irish Independent relays.

At the time, the chain employed 558 full- and part-time staff,
Irish Independent discloses.  The three outlets it planned to
close employed just under 100 people in total, Irish Independent

The company, as cited by Irish Independent, said its business
here had suffered heavily during the downturn, with sales
slumping 31% since 2009, and had been unprofitable for each of
the previous five years despite remedial action that had been
taken by management.

It exited the examinership process in October, having decided to
retain one of the three outlets -- Fonthill -- that had been
slated to close, Irish Independent, Irish Independent relays.
That left it with 13 stores, Irish Independent notes.

Homebase is part of the Home Retail Group that also owns Argos.

IRELAND: Troubled Banks Significant Threat to Economic Recovery
Sharlene Goff at The Financial Times reports that Ireland's
troubled banks, which plunged the country into crisis three years
ago, still pose a significant threat to the broader economic
recovery, even as the nation emerges from its punitive bailout.

According to the FT, although Ireland has spent EUR64 billion
cleaning up its broken banking system, its two biggest lenders --
Bank of Ireland and Allied Irish Banks -- are still battling to
convince regulators of their return to financial health.

The FT notes that while analysts say the two banks have made
significant progress in rebuilding their battered balance sheets
since they were rescued in November 2010, both are expected to be
lossmaking again this year, loading more pressure on to their
already precarious capital positions.

With a potentially brutal round of stress tests scheduled for
2014, Ireland's attempts to position itself as Europe's bailout
success story cannot mask the challenges still faced by the
country's banks, the FT states.

The biggest risk, according to analysts, is that the banks are
forced to raise more capital next year, the FT says.

According to the FT, some analysts have warned that Bank of
Ireland and AIB have some of the lowest capital adequacy ratios
in Europe, prompting concern ahead of planned stress tests by the
European Central Bank next year.

The big Irish lenders are also battling against a still dire
mortgage market, the FT notes.

IRELAND: Banks Appoint Receivers to Collect Rents
RTE News reports that Irish banks have appointed receivers to
collect rent from tenants in 2,000 properties where landlords
have been refusing to pass the rent on to the lenders.

The information emerged in a Dail reply by Minister for Finance
Michael Noonan to Fianna Fail finance spokesman Michael McGrath,
RTE News relates.

Rent receivers are appointed by financial institutions in cases
where landlords are collecting rent but not passing it on to the
bank to pay a mortgage in arrears, RTE News discloses.

According to RTE News, Bank of Ireland had appointed rent
receivers to over 1,235 properties by the end of June.

AIB has appointed rent receivers to over 540 residential
properties with a further 250 properties expected to be covered
by the end of the year, RTE News relays.

Permanent TSB, as cited by RTE News, said it has appointed rent
receivers over 144 properties and the appointment of a receiver
is pending for a further ten properties.

The bank advised the Department of Finance that appointments were
made on a case-by-case basis, RTE News notes.

TV3: Doughty Hanson Selected to Buy Firm Loans
RTE News reports that Doughty Hanson, the private equity group
behind TV3, has been selected to buy the television station's
loan from the special liquidators of IBRC.

TV3 had borrowings from IBRC, formerly Anglo Irish, of over
EUR100 million, according to RTE News.

The report relates that the bank was put into liquidation last
February and the special liquidators, KPMG, sold off the loans.

Meanwhile, the report notes that Stockbroking company Davy is to
buy back its own loans from the liquidators of IBRC.

It is understood it has been selected as preferred bidder for its
loans, which were under EUR140 million, the report relates.

The report discloses that the company has repaid its borrowings
with finance from Bank of Ireland.

However, the report relays it is understood that the owners of
the Racing Post have not been successful in buying its loans back
from the liquidators.

"At this point in the loan sales process, the bidding phases for
... the first portfolio of IBRC loans brought to market have
concluded . . . . Subject to legal execution, the Special
Liquidators expect that approximately 84% (by loan par value) of
this portfolio will be sold to buyers other than NAMA," the
report quoted a spokesperson for the Special Liquidators as

"There was strong market interest in the process which was
designed to maximize value and resulted in competition among
bidders for the acquisition of the various loan assets . . . The
Special Liquidators are pleased with the outcome thus far which
reflects the market interest that has been evident since the
commencement of the special liquidation," the spokesman added,
the report notes.


LECTA SA: Moody's Cuts CFR to B2 & Changes Outlook to Stable
Moody's Investors Service downgraded the Corporate Family Rating
of Lecta S.A. to B2, the Probability of Default rating to B2-PD
and the instrument ratings of the Lecta's Senior Secured Bonds to
B2 (LGD4,51). The outlook on all ratings was changed to stable
from negative.

Ratings Rationale:

"The downgrade follows Lecta's accelerated negative performance
during 2013 and reflects Moody's view that the company's key
credit metrics have weakened sufficiently to be more in line with
the B2 rating level" says Matthias Volkmer, Moody's lead analyst
for Lecta. As per September 2013, all of Lecta's credit metrics
had deteriorated including EBITDA margin below 5% and debt/EBITDA
to around 10.5x (8.2 times on a net debt basis, all as adjusted
by Moody's), including significant restructuring related costs of
approximately EUR 22 million. Despite ongoing restructuring
efforts in 2014, Lecta's profit margins are expected to benefit
from cost savings and a better product mix, leading to an
improved leverage ratio.

During the period year-to-date (YTD) September 2013, Lecta's
decline in operating profitability accelerated with its LTM
September EBITDA (as reported by the company) dropping by about -
26% to EUR103 million compared to the EBITDA that was generated
in 2012, which was subsequent to an approximately -14% decline
since FY2011. With YTD September 2013 revenues broadly flat
compared to the same period last year, profitability was
adversely impacted by substantially lower volumes in Coated Wood
free products net of volume increases in specialty papers as well
as higher input costs that could not be compensated by selling
price increases.

The stable outlook in conjunction with the downgrade to B2
reflects Moody's expectation of a stabilizing performance during
the course of 2014. Although Moody's expects free cash flow
generation to be negative during 2014, largely a result of
increasing capex, continued restructuring costs and negative
working capital changes, profitability is likely to improve
gradually. This is due to improved operating rates and reduced
negative pricing trends as a result of a recent industry wide
production capacity adjustment.

Following recent announcements by Lecta and other industry
players to permanently reduce coated wood free paper production
totaling up to 600k tones, Lecta is expected to benefit from an
improved demand-supply balance and resulting slowdown in price
declines during 2014. Besides fixed cost savings and improved
utilization rates, an expected decrease in pulp prices will lower
input costs of not fully integrated players like Lecta. While
cost savings and Lecta's focus towards its more profitable
specialty paper production should benefit profit generation,
Moody's notes that it is difficult to gauge the extent of
permanent long-term improvements given the execution risk and the
uncertain industry environment driven by structural and cyclical
pressures and intense competition. In addition, expected energy
price increases could be exacerbated by expected changes to
energy regulation in Spain, which will have a negative impact on
Lecta's EBITDA.

Lecta maintains a solid liquidity position, underpinning the
current rating level but predicated on recovery to positive free
cash flow generation following temporarily increased capital
expenditure related to strategic projects in 2014. The issuer's
two main internal liquidity sources are cash and cash equivalents
of EUR140 million (net of bank overdraft) as of September 2013
and adjusted funds from operations of approximately EUR29 million
during LTM September 2013. In addition, the company has access to
an unused EUR80 million revolving credit facility maturing in
2018. The facility does not contain any material conditionality
language such as maintenance financial covenants. There are no
material debt maturities before 2018 when both the RCF and the
secured floating rate notes mature.

The ratings could be subject to negative rating action as a
results of continued decline in financial performance and Lecta
being unable to timely substitute declining volumes in coated
wood free products with a higher profit share in specialty
papers. Quantitatively, Moody's could downgrade the ratings if
Lecta's debt/ EBITDA as adjusted by Moody's was to remain above
7x as well as prolonged negative free cash flow generation
resulting in accelerated cash consumption.

Moody's could consider a positive rating action if Lecta's
operating performance improves and the company successfully
executes its commercial strategy and cost cutting plans,
resulting in improving profitability during 2014 and better
visibility for marked improvements. Quantitatively, a positive
rating action would be considered if EBITDA margins were to
improve to high single digits and debt to EBITDA to below 6x (all
metrics as adjusted by Moody's).


Issuer: Lecta S.A.

Corporate Family Rating, Downgraded to B2 from B1

Probability of Default Rating, Downgraded to B2-PD from B1-PD

Senior Secured Regular Bond/Debentures, Downgraded to B2, LGD4,
51% from B1, LGD4, 51%

Outlook, Changed To Stable From Negative

Lecta, with legal headquarters in Luxembourg, is a leading coated
fine paper manufacturer in Spain, Italy and France. The company
also has a specialty paper division and a distribution business
in Spain, Portugal, France and Italy. During the last-twelve-
month to September 2013, Lecta generated sales of approximately
EUR1.6 billion. The company is controlled by private equity funds
managed by CVC Capital Partners.


MOLDOVA: Opposition Seeks to Stop Liquidation
Kyivpost News reports that the opposition Party of Communists of
Moldova has called on the international community "to stop the
re-division of Europe and the liquidation of Moldova."

By initialing an association agreement with the European Union at
the recent Eastern Partnership summit in Vilnius, Moldova "has
immediately lost its sovereignty in foreign policy, in foreign
and domestic trade, and in security matters," the Party of
Communists said in a statement, according to Kyivpost News.

"Plundered and humiliated by its own rulers, Moldova, contrary to
the false expectations, has received a list of burdening
obligations and deadly duties from the EU.  And not a single
European freedom," the statement said, the report notes.

"The government led by Iurie Leanca has openly sold Moldova out
to geopolitical slavery and divided the country along the
Dniester, turning a small European country into a yapping anti-
Russian mongrel on a European chain," the statement said, the
report adds.

The statement said that the policy of open and demonstrative
humiliation of one's own country, its constitution, and people
was enthusiastically continued by the Constitutional Court and
the Romanian parliament, which "started Moldova's international
legal dismantlement virtually at the same time," the report

"The Constitutional Court has actually consecrated the Republic
of Moldova's actual waiver of its own internationally recognized
borders, and the Romanian parliamentarians have declared the
course toward the soonest possible unification of Bessarabia and
Romania and determined mechanisms and ways to attain this goal,"
the statement said, the report relates.

In doing so, "Romania and the Moldovan government kept in power
only thanks to the EU's unceremonious efforts have challenged the
Moldovan people in an unprecedented way," the statement related,
according to the report.

"The opposition Party of Communists alone will be unable to
oppose Moldova's manmade disintegration, destabilization of the
conflict on the Dniester, and the reshaping of the postwar
borders.  In this situation, international resources should be
consolidated to affect the criminal-oligarchic regime in
Moldova," the statement said, the report relays.

The authors of the statement appealed to Russia, Ukraine, the
OSCE and the UN as the guarantors in the Transdniestria
settlement process "to stop the criminal geopolitical re-division
in Europe, the liquidation of Moldova, and the unlawful and
criminal rule in it under the EU flag," the report discloses.

The Party of Communists hopes that there is no other way "not
only to avoid the threat of [Moldova's] predatory takeover by the
neighboring Romanian state but also to preserve civilian peace in
Moldova and the hope for overcoming the internal political
conflict through civilized and democratic methods," the report


CLARE ISLAND: Moody's Affirms B3 Ratings on Two Note Classes
Moody's Investors Service has confirmed the rating of the
following notes issued by Clare Island B.V.:

EUR110.5M Class II Senior Floating Rate Notes, Confirmed at Aa2
(sf); previously on Nov 14, 2013 Upgraded to Aa2 (sf) and Placed
Under Review for Possible Upgrade

EUR15M Class III-A Mezzanine Fixed Rate Notes, Confirmed at Ba2
(sf); previously on Nov 14, 2013 Ba2 (sf) Placed Under Review for
Possible Upgrade

EUR17M Class III-B Mezzanine Floating Rate Notes, Confirmed at
Ba2 (sf); previously on Nov 14, 2013 Ba2 (sf) Placed Under Review
for Possible Upgrade

Moody's also affirmed the ratings of the following notes issued
by Clare Island B.V.:

EUR225M (outstanding balance of EUR66.6M) Class I Senior Floating
Rate Notes, Affirmed Aaa (sf); previously on Apr 16, 2013
Affirmed Aaa (sf)

EUR8.3M Class IV-A Mezzanine Fixed Rate Notes, Affirmed B3 (sf);
previously on Apr 16, 2013 Downgraded to B3 (sf)

EUR18.2M Class IV-B Mezzanine Floating Rate Notes, Affirmed B3
(sf); previously on Apr 16, 2013 Downgraded to B3 (sf)

Clare Island B.V., issued in March 2002, is a Collateralised Loan
Obligation ("CLO") backed by a portfolio of high yield European
loans. It is predominantly composed of senior secured loans. This
transaction passed its reinvestment period in March 2010.
However, the manager is able to reinvest some principal proceeds
subject to transaction specific reinvestment criteria.

Ratings Rationale:

Moody's had previously upgraded the rating on November 14, 2013
of Class II to Aa2 (sf) and left it on review for upgrade as well
as placing the Ba2 (sf) rating of Class III-A and III-B on review
for upgrade due to significant loan prepayments. Rating
confirmation on these classes primarily reflects improvement in
the overcollateralization ratios which offsets the deterioration
in the credit quality of the asset pool observed through a higher
average credit rating of the portfolio (as measured by the
weighted average rating factor "WARF"), an increase in the
proportion of securities from issuers rated Caa1 and below and
the general deterioration of key credit metrics of the underlying
pool. Action concludes the rating review of the transaction.

Moody's notes that the key model inputs used by Moody's in its
analysis, such as par, weighted average rating factor, diversity
score, and weighted average recovery rate, are based on its
published methodology and may be different from the trustee's
reported numbers. In its base case, Moody's analyzed the
underlying collateral pool to have a performing par and principal
proceeds balance of EUR239.2 million, defaulted par of EUR10.4
million, a weighted average default probability of 25.51
(consistent with a WARF of 3937) a weighted average recovery rate
upon default of 48.37% for a Aaa liability target rating, a
diversity score of 26 and a weighted average spread of 4.07%.

As part of the base case, Moody's has addressed the exposure to
obligors domiciled in countries with local currency country risk
bond ceilings (LCCs) of A1 and below. Given the portfolio is
exposed to 13.41% of obligors located in Ireland and Spain, whose
LCC is A3, the model was run with different par amounts depending
on the target rating of each class of notes as further described
in the Section 4.2.11 and Appendix 14 of the methodology. The
portfolio haircuts are a function of the exposure size to
peripheral countries and the target ratings of the rated notes
and amount to 1.40% for the Class I notes and 0.88% for the Class
II notes.

The default probability is derived from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The average recovery rate to be realised on
future defaults is based primarily on the seniority of the assets
in the collateral pool. For a Aaa liability target rating,
Moody's assumed that 95.33% of the portfolio exposed to first
lien senior secured corporate assets would recover 50% upon
default, while the remainder non first-lien loan corporate assets
would recover 15%. In each case, historical and market
performance trends and collateral manager latitude for trading
the collateral are also relevant factors. These default and
recovery properties of the collateral pool are incorporated in
cash flow model analysis where they are subject to stresses as a
function of the target rating of each CLO liability being

Factors that would lead to an upgrade or downgrade of the rating:

In addition to the base case analysis described above, Moody's
also performed sensitivity analyses on key parameters for the
rated notes, which includes deteriorating credit quality of
portfolio to address the refinancing risk. Approximately 11.10%
of the portfolio is European corporate rated B3 and below and
maturing between 2013 and 2015, which may create challenges for
issuers to refinance. Moody's considered a model run where the
base case WARF was increased to 4054 by forcing ratings on 25% of
refinancing exposures to Ca. This run generated model outputs
that were within one notch from the base case results.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, which could negatively impact the
ratings of the notes, as evidenced by 1) uncertainties of credit
conditions in the general economy and 2) the large concentration
of lowly rated debt maturing between 2013 and 2015 which may
create challenges for issuers to refinance. CLO notes'
performance may also be impacted either positively or negatively
by 1) the manager's investment strategy and behaviour and 2)
divergence in legal interpretation of CDO documentation by
different transactional parties due to embedded ambiguities.

Sources of additional performance uncertainties are described

1) Portfolio amortization: The main source of uncertainty in this
transaction is the pace of amortization of the underlying
portfolio. Pace of amortization could vary significantly subject
to market conditions and this may have a significant impact on
the notes' ratings. In particular, amortization could accelerate
as a consequence of high levels of prepayments in the loan market
or collateral sales by the liquidation agent / the Collateral
Manager or be delayed by rising loan amend-and-extend
restructurings. Fast amortization would usually benefit the
ratings of the notes beginning with the notes having the highest
prepayment priority.

2) Moody's also notes that around 45.5% of the collateral pool
consists of debt obligations whose credit quality has been
assessed through Moody's credit estimates. Large single exposures
to obligors bearing a credit estimate have been subject to a
stress applicable to concentrated pools as per the report titled
"Updated Approach to the Usage of Credit Estimates in Rated
Transactions" published in October 2009.

3) Recovery of defaulted assets: Market value fluctuations in
defaulted assets reported by the trustee and those assumed to be
defaulted by Moody's may create volatility in the deal's
overcollateralization levels. Further, the timing of recoveries
and the manager's decision to work out versus sell defaulted
assets create additional uncertainties. Realisation of higher
recoveries than Moody's assumed would positively impact the
ratings of the notes.

In addition to the quantitative factors that are explicitly
modelled, qualitative factors are part of the rating committee
considerations. These qualitative factors include the structural
protections in each transaction, the recent deal performance in
the current market environment, the legal environment, specific
documentation features, the collateral manager's track record,
and the potential for selection bias in the portfolio. All
information available to rating committees, including
macroeconomic forecasts, input from other Moody's analytical
groups, market factors, and judgments regarding the nature and
severity of credit stress on the transactions, may influence the
final rating decision.

DUTCH MBS XVII: Fitch Affirms 'B' Ratings on Class E Notes
Fitch Ratings has affirmed Dutch MBS XVI, Dutch MBS XVII and
Dutch MBS XVIII B.V., as follows:

Dutch MBS XVI B.V.
Class A1 (ISIN XS0619300352) affirmed at 'AAAsf'; Outlook Stable
Class A2 (ISIN XS0619302135) affirmed at 'AAAsf'; Outlook Stable
Class B (ISIN XS0619303885) affirmed at 'AAsf'; Outlook Stable
Class C (ISIN XS0619305401) affirmed at 'Asf'; Outlook Stable
Class D (ISIN XS0619306805) affirmed at 'BBBsf'; Outlook Stable

Class A1 (ISIN XS0833086563) affirmed at 'AAAsf'; Outlook Stable
Class A2 (ISIN XS0833089153) affirmed at 'AAAsf'; Outlook Stable
Class B (ISIN XS0833089480) affirmed at 'AA+sf'; Outlook Stable
Class C (ISIN XS0833095986) affirmed at 'A+sf'; Outlook Stable
Class D (ISIN XS0833097099) affirmed at 'BBB+sf'; Outlook Stable
Class E (ISIN XS0833097842) affirmed at 'Bsf'; Outlook Stable

Class A1 (ISIN XS0871317771) affirmed at 'AAAsf'; Outlook Stable
Class A2 (ISIN XS0871317938) affirmed at 'AAAsf'; Outlook Stable
Class B (ISIN XS0871318829) affirmed at 'AA+sf'; Outlook Stable
Class C (ISIN XS0871319124) affirmed at 'A+sf'; Outlook Stable
Class D (ISIN XS0871319397) affirmed at 'BBBsf'; Outlook Stable
Class E (ISIN XS0871319470) affirmed at 'Bsf'; Outlook Stable

The Dutch prime RMBS transactions comprise loans originated by
NIBC Bank (BBB-/Stable/F3). The portfolios in Dutch MBS XVI and
XVIII are serviced by STATER (RPS1-) and Quion (RPS2), while the
loans in Dutch MBS XVII are only serviced by STATER.

Key Rating Drivers:

Performance Better Than Average Dutch Prime RMBS
The affirmations reflect the strong performance of the underlying
assets, which is in line with Fitch's expectations. As of the
latest investor reports, three-month plus arrears ranged from
0.12% (Dutch MBS XVIII) to 0.56% (Dutch MBS XVI) of the current
pool balance, which are both well below the average of 0.87% for
Dutch prime three month plus arrears.

Sound Credit Quality of Securitized Loans
The strong performance of the underlying pools reflects their
sound credit quality. The transactions are backed by highly
seasoned (on average 114.2 months) collateral with fairly low
weighted average loan-to-market-values ranging from 78.7% in
Dutch MBS XVI to 70.9% in Dutch MBS XVII.

Notes Amortization
Note amortization in all these deals is sequential. As a result,
credit enhancement available for the notes is expected by Fitch
to increase further from levels seen in the latest investor
reports, as the pools continue to deleverage.

Rating Sensitivities:

Deterioration in asset performance may result from economic
factors, in particular the effect of growing unemployment. A
corresponding increase in new repossessions and associated
pressure on excess spread levels, the reserve fund and the
liquidity facility could result in negative rating action,
particularly for the junior tranches.


KURSK REGION: Fitch Affirms 'BB+' Long-Term IDRs; Outlook Stable
Fitch Ratings has affirmed Kursk Region's Long-term foreign and
local currency Issuer Default Ratings (IDRs) at 'BB+', with
Stable Outlooks, and its Short-term foreign currency IDR at 'B'.
The agency has also affirmed the region's National Long-term
rating at 'AA(rus)' with Stable Outlook.

The affirmation reflects the region's sound operating
performance, low direct risk and contingent liabilities, and
large self-financing of capex. The ratings also factor in the
moderate size of the region's budget, modest but growing local
economy and an evolving national institutional framework. The
Stable Outlook reflects Fitch expectation that the region will
maintain its sound budgetary performance over the medium-term.

Key Rating Drivers:

Fitch expects the region's operating balance will average 13%-14%
of operating revenue per annum in 2013-2015. In 2012 the
operating balance accounted for 14.7% of operating revenue, down
from a high 20% in 2011. The decline of operating balance was in
line with Fitch projections and reflected salary increases for
public employees as mandated by the national government. This led
to a 15.2% yoy growth of operating expenditure, outpacing the
8.4% increase in operating revenue in 2012.

Fitch expects the region's direct risk will remain low at around
10% of current revenue in 2013 (2012: 7.1%). The debt coverage
(direct risk to current balance) ratio will remain strong and at
below one year in 2013. As of 1 December 2013 the region's direct
risk was composed of only subsidized loans from the federal
budget with final maturity in 2015 and 2016. The region may,
however, in December draw down RUB1.5 billion of its unutilized
credit lines with commercial banks of RUB4.3 billion to finance
an expected RUB2.3 billion deficit.

The region's contingent liabilities are decreasing. The region
has not provided guarantees since 2008 while the stock of
guarantees issued to agricultural companies during 2005-2007 is
diminishing and will amount to RUB0.5 billion by 2014 (2012:
RUB1.4 billion, which corresponded to 4% of operating revenue).
Kursk's public-sector entities were debt-free in 2012.

Kursk's capital expenditure remains higher than the median for
'BB+' peers and accounted for 27% of total expenditure in 2012.
The region's self-financing capacity (current balance and capital
revenue) continued to be strong in 2012 as it covered around 90%
of capex. Fitch assumes the administration may moderately reduce
the region's capex in the medium-term to control the budget

During 2011-2012 the region's economic growth outpaced the
national average. The administration expects 3% GRP growth for
2013, which is likely to remain above the national average.
Nevertheless, the region's economy is still modest with GRP per
capita 5% lower than the national median in 2011. The region has
a diversified industrial sector and is strong in agriculture.

The ratings are constrained by the evolving nature of
institutional framework for local and regional governments (LRGs)
in Russia. It has a shorter track record of stable development
than many of its international peers, which negatively affects
the predictability of Russian LRGs' budget policy.

Rating Sensitivities:

A sustained operating balance close to 20% of operating revenue
for two consecutive years, coupled with continued strong debt
metrics in line with Fitch projections, could lead to an upgrade.

Deterioration of the operating balance to below 10% of operating
revenue, coupled with debt increase leading to debt coverage
ratio above average debt maturity, could lead to a downgrade.


SLOVENIA: Finance Minister Draws Up Plan to Avoid Int'l Bailout
Peter Spiegel at The Financial Times reports that Slovenia's
finance minister has laid out his plan to avoid becoming the
sixth eurozone country to require an international bailout,
saying he will inject EUR3 billion into the country's three
largest banks to help cover a EUR4.8 billion capital shortfall in
the financial sector.

The funding requirement, which was higher than many officials
expected, was revealed after a review of the shaky banks by four
private consultancies, the FT relates.  Leaders hope the review,
demanded by Brussels, will draw a line under the country's
financial crisis, the FT notes.

According to the FT, in addition to the EUR3 billion in aid to
the state-owned banks, which includes EUR2.1 billion in
government cash and EUR905 million in bonds, an additional EUR441
million will be saved by imposing losses on junior bondholders.
Five other smaller banks that need a combined EUR1 billion in
funds will be required to raise it in private markets before June
2014, the FT says.

Senior officials from the troika of international lenders -- the
European Commission, European Central Bank and International
Monetary Fund -- have raised concerns about the structure of the
Slovene banking system, arguing that even if Slovenia can pay for
the rescue on its own, a full bailout program could force a
needed overhaul, the FT discloses.

Without outside intervention, some officials worry the ties
between bank executives, government officials and corporate
leaders -- a cosiness that many blame for putting the country in
its current predicament -- may make Thursday's effort only a
temporary fix before it returns to uneconomic lending practices,
the FT notes.

The commission must still sign off on the plan, because Brussels
must clear all bank restructuring measures that involve state
assistance, the FT states.  The commission said it was reviewing
the scheme but would come to a conclusion shortly, the FT relays.


DOMETIC GROUP: Moody's Changes Outlook on Caa1 CFR to Positive
Moody's Investors Service has changed from stable to positive the
outlook on Caa1 corporate family rating (CFR) and Caa1-PD
probability of default (PDR) of Dometic Group AB and Dometic's
Caa3 rating on EUR202 million PIK Notes due 2019. Concurrently,
Moody's has affirmed Dometic's ratings.

The rating action reflects the improvement in the company's (i)
liquidity and covenant headroom following the renegotiation with
its lenders and (ii) operating performance during the third
quarter of 2013.

Ratings Rationale:

Following weaker than expected operating performance the company
renegotiated the terms of its senior facilities agreement in
June 2013 which involved an additional investment by EQT of
SEK400 million, amendment of financial covenants and a revised
amortization profile. As a result the company's liquidity and
debt maturity profile has improved removing Moody's previous
concerns about weakening liquidity and covenant headroom.

The rating action also reflects the year-on-year improvement in
the company's financial performance demonstrated in the third
quarter of 2013 driven by continued strong momentum in North
America and Asia Pacific, offset by persistent weakness in the
European recreational vehicle (RV) OEM business. LTM September
2013 sales of SEK7,683 million and management adjusted EBITDA of
SEK1,081 million increased versus LTM June 2013 however still
have not reached the level of 2012 sales of SEK7,922 million and
EBITDA of SEK1,143 million. Moody's expects that the positive
trend will continue in the next quarter supported by further
volumes growth and cost savings from the improved manufacturing

Moody's adjusted gross leverage remains high and is expected to
approach 7.5x at the end of 2013 (including PIK debt), rising
from 6.8x leverage at the end of 2012. However, the company
continues to generate positive free cash flow (as defined by
Moody's) alleviating some concerns about the capital structure.
Moody's expects gradual deleveraging over time, slowed down by
the presence of EUR200 million PIK Notes in the capital structure
and delayed bank debt amortization.

The company's liquidity as of the end of September 2013 is
adequate, consisting of SEK622 million cash on balance sheet and
SEK409million available under SEK600 million revolving credit
facility (RCF). SEK300 million Capital Expenditure (Capex)
facility and additional SEK150 million Capex tranche are fully
drawn. According to the renegotiated terms of the senior
facilities agreement the first significant debt repayment is
delayed to 2017 and covenant headroom is sufficient.

The positive outlook reflects Moody's expectation that the
improvement in operating performance will continue leading to
some deleveraging of the capital structure over time.

The ratings could be upgraded if the company's leverage decreases
below 7.0x over medium term and free cash flow stays positive.

Conversely, the ratings could be downgraded if the positive trend
in operating performance does not continue leading to
deterioration in Dometic's liquidity or concerns about financial
covenants headroom.

Headquartered in Sweden, Dometic is a leading manufacturer of
leisure products for the caravan, motor home, automotive, truck,
hotel and marine markets in almost 100 countries. In 2012, the
company had an average of 6,400 employees and generated SEK 7,922
million net sales. Dometic sells its products under Dometic,
Waeco, Marine Air Systems, Condaria, Cruisair and Sealand brands.
Europe and the U.S. are the company's key geographies, accounting
for 51% and 35% of net sales respectively for the year ended
December 31, 2012. The company's largest segment is recreational
vehicles, accounting for 56% of 2012 net sales.


YUKSEL INSAAT: Fitch Lowers IDR & Unsecured Notes Rating to 'CC'
Fitch Ratings has downgraded Turkey-based construction company
Yuksel Insaat A.S.'s (YI) Long-term Issuer Default Rating (IDR)
and senior unsecured rating to 'CC' from 'CCC'. Fitch has also
downgraded YI's US$200 million outstanding notes maturing in 2015
to 'CC' from 'CCC'.

The downgrade reflects uncertainties related to YI's on-going
negotiations with its bondholders. In line with Fitch's Global
Cross-Sector Criteria on 'Distressed Debt Exchange' dated
August 2, 2013, the downgrade also reflects a probability that
the bond restructuring could lead to a material reduction in the
contractual terms against the original terms to avoid going into
default. Fitch currently does not have enough details on the
final terms offered to bondholders, which will be a key driver
for the ratings.

YI's liquidity has improved following the receipt of proceeds
from the Gebze-Izmir Highway stake sale. Although current
liquidity is close to historical levels, Fitch believes that
liquidity post restructuring and/or covenant adjustments would be
another factor determining the direction of the ratings.

Key Rating Drivers:

Uncertainty over Restructuring Negotiation
The negotiations with bondholders followed a breach of the 4:1
leverage bond covenant in FY11 by incurring additional debt. The
company took on additional debt to finance a large highway
project from the government. The bondholders have not taken any
legal action in response to the breach, but are instead engaged
with YI in bond restructuring negotiations.

Improved Cash Balances
Despite YI's improved cash position there is still uncertainty
regarding YI's liquidity, given that the negotiations are still
on-going with the bondholders. YI's management had previously
stated that they would need at least USD30m of cash at all time
for their working capital needs. Therefore, the amount of
prepayment or covenant amendments will be critical for YI to be
able to continue their operations.

Operations under Pressure
During 2013 YI's profitability has decreased, but its order book
is stable given their well-established reputation within the
region. Fitch expects operating EBITDA margin for FY13 to be
around 7%, falling behind Fitch 8.7% previous projections.

Libya Exposure
YI has already commenced construction works in Libya.
Re-mobilization of Darnah-Imsaad and Sirt Ajdabiyah projects has
started. YI expects to receive amounts from some projects this
month, and could also re-start some projects in Libya. YI has
received US$6 million since the beginning of the year and is
expecting an additional US$2 million this month.

Leading Turkish Construction Company
The ratings continue to reflect YI's position as one of the main
construction companies in Turkey, focusing on infrastructure
construction contracts, mostly for government entities across
Turkey, and the Middle East and North African region. YI is
therefore well positioned to benefit from an expected growth in
energy demand, as well as from the need for infrastructure
improvements across many of its end-markets (notably in the Gulf
region), where YI has a well-established presence.

Rating Sensitivities:

Future developments that may individually or collectively lead to
positive rating action include:

   -- Successful bond restructuring of the bond with no material
      reduction in the contractual terms against the original
      terms to avoid default.

   -- Continued asset disposals and/or capital injection from
      shareholders leading to significant deleveraging and
      improvement of liquidity

Future developments that may individually or collectively lead to
negative rating action include:

   -- Failure in restructuring negotiations, bond restructuring
      with material reduction in the contractual terms against
      the original terms to avoid default.


PRIVATBANK: S&P Assigns 'B-/C' Counterparty Credit Ratings
Standard & Poor's Ratings Services said it assigned its 'B-'
long-term and 'C' short-term counterparty credit ratings to
Ukraine-based PrivatBank.  The outlook is negative.

The ratings reflect the 'b' anchor for a bank operating primarily
in Ukraine, as well as S&P's view of PrivatBank's strong business
position, moderate capital and earnings, an adequate risk
position, above average funding, and adequate liquidity, as S&P's
criteria define these terms.  S&P assess the bank's stand-alone
credit profile (SACP) at 'b+'.  The long-term counterparty credit
rating on PrivatBank is constrained by the foreign currency long-
term rating on Ukraine.

The ratings also incorporate PrivatBank's dominant commercial
franchise in Ukraine, stronger asset quality than the system
average, stable retail-based deposit funding, and lower single-
name concentrations than peers.  Offsetting these strengths are
the bank's moderate capital and earnings, and the vulnerability
of its franchise to Ukraine's weak economy.

S&P bases its assessment of PrivatBank's business position as
"strong" on its dominant commercial banking franchise in the
highly fragmented and intensely competitive Ukrainian banking
sector and its position among the top 10 banks in the
Commonwealth of Independent States (CIS).

With total assets of Ukrainian hryvnia (UAH) 185 billion
(US$23 billion) on June 30, 2013, PrivatBank is the largest bank
in Ukraine and ranks sixth among CIS banks, following five
Russian banks.  The bank has a very strong and sustainable
franchise in retail banking in Ukraine, with market shares of 24%
in retail deposits and 16% in retail loans.  It has a weaker
competitive position in corporate banking than in retail banking,
though, with an 18% market share in loans and 9% in deposits.
Its loan book reflects inherent concentrations in sectors
important for the Ukrainian economy, such as ferroalloys.  The
bank's subsidiaries in Russia, Georgia, Latvia, and its Cyprus
branch remain generally small and provide limited geographic
diversity. Still, PrivatBank is one of only a few Ukrainian banks
with foreign commercial banking activities.

"The bank has shown higher resilience through the 2008-2009
financial and economic crisis than its commercial peers.  In our
view, this is because of its conservative approach to retail
mortgages and construction and real estate, the fastest growing
segments in Ukraine before the crisis.  The bursting of the real
estate bubble and the hryvnia devaluation in 2009 hit these
segments hard.  PrivatBank has remained profitable and built up
capital through the cycle, while the Ukrainian banking system was
loss making in 2009-2011.  In our view, PrivatBank has a
relatively cautious approach to risks and has been able to
improve its competitive position since 2009. In our view, the
bank is well-positioned to retain its leadership position in the
Ukrainian banking system, supported by technological upgrades and
product innovation," S&P said.

S&P assess PrivatBank's capital and earnings as "moderate,"
taking into account its projection that its risk-adjusted capital
(RAC) ratio, before adjustments for diversification, will remain
at about 5.3%-5.7% in the next 18 months.  S&P bases its
projection on organic annual loan growth of about 15% that is
higher than what it expects systemwide, no planned fresh capital
increases, and full earnings retention.

The bank's earnings compare favorably with those of Ukrainian
peers.  PrivatBank has remained profitable through the cycle and
has good pricing power.  However, the bank's risk-adjusted
returns are low.  Return on assets stood at just 0.9% in 2012 and
S&P expects a decrease to roughly 0.7% in 2013-2014.  Its net
interest margin has contracted progressively over the past four
years, and S&P expects it to remain compressed on competition and
elevated funding costs across the banking system.  PrivatBank has
also historically recorded high credit costs (new loan loss
reserves), which accounted for 4%-5% of total loans in the past
four years. We don't expect any substantial reduction in these
costs in 2013-2014.

PrivatBank's risk position is "adequate," in S&P's view, compared
with peers located in countries with equally high economic risks.
S&P factors in the bank's well-diversified franchise with better
loss experience than peers.

The bank's growth has outpaced the Ukrainian banking system's.
S&P expects PrivatBank to double its gross loans by year-end 2013
from year-end 2009, compared with the system's growth of about
13% during the same time.  In S&P's view, PrivatBank has
sufficiently developed its systems and processes to support this

PrivatBank's highest concentration is in oil trading (26% of
total loans at midyear 2013) and ferroalloys trading and
production (12%), owing to Ukraine's location in the industrial
southeast. The bank's exposure to risky real estate and
construction sector -- at 4% of total loans at midyear 2013 --
was also well below the system average of 24%.  The share of its
top 20 loans to total loans at midyear 2013 was only 14% and
fully covered by total adjusted capital (TAC).  This proportion
compares very favorably with those of other rated CIS banks.  An
additional potential source of risk is loans in foreign
currencies (30% of total loans, predominantly in the corporate
portfolio).  S&P expects a further evaluation of the hyrvnia to
UAH9.5/US$1 in the next 12 months; from the current rate of

The bank's loss experience compares well with that of the
Ukrainian banking system.  S&P estimates systemwide problem loans
at about 35% of total loans, including nonperforming loans and
restructured loans.  PrivatBank's nonperforming loans (loans over
90 days overdue) stood at 5.1% of total loans at midyear 2013,
and S&P do not expect them to exceed 10% in the next two years,
taking into account the seasoning of the loan portfolio.  The
bank restructured an additional 4.1% of total loans, mainly in
the corporate segment.  Its provisioning policy is conservative,
in S&P's view, and should provide an additional buffer against
Ukraine's weak economic prospects and the difficult operating
conditions in the domestic banking sector.

"We assess PrivatBank's funding as "above average," based on its
sizable, granular retail depositor base, which is by far the
largest in the market, and a track record of funding in
international capital markets.  The bank's funding ratio has been
stable at more than 110% in the past three years," S&P added.

Customer deposits represent PrivatBank's main funding source,
accounting for 87% of total liabilities as of midyear 2013.

In line with the Ukrainian banking system, a large portion of
PrivatBank's retail deposits are in foreign currencies,
reflecting general expectations of a devaluation of the hryvnia.
Given the relatively high possibility of a hryvnia devaluation in
the next 12 months, foreign currency mismatches could weaken the
bank's liquidity position if there's a run on deposits.

The 20 largest depositors accounted for about 44% of total
corporate deposits or 10% of total customer deposits, which
compares favorably with levels at peers.  PrivatBank's loan-to-
deposit ratio -- at 93% at midyear 2013 -- is significantly
better than the system average of 130%, and we expect it to
remain below 100% in the next two years.

The bank's broad liquid assets (including cash and reserves at
Ukraine's central bank, balances due from financial institutions
within one year, and liquid securities, under S&P's definition)
accounted for about 18% of total assets at midyear 2013 and
covered short-term wholesale funding by 8.2x.  Despite this high
level, S&P assess PrivatBank's liquidity as adequate, taking into
account liquidity risks at the sovereign level, especially in
foreign currency.  S&P also believes that further stress at the
sovereign level could hamper the central bank's ability to
provide liquidity support to domestic banks, if needed.

Under S&P's criteria, it do not rate PrivatBank higher than
Ukraine, given that the bank's exposure to Ukraine stands at
about 80%.  Although S&P acknowledges that PrivatBank has only
marginal exposure to local sovereign debt and to state-related
enterprises, it believes that a hypothetical sovereign default
and its potential consequences for the Ukraine economy would take
a severe toll on PrivatBank.  In such a scenario, the bank would
likely face the inability of the National Bank of Ukraine to
provide local currency liquidity to the banking sector,
deterioration of borrowers' creditworthiness due to a hryvnia
devaluation, potential deposit outflows, and closed access to
capital markets.

The negative outlook on PrivatBank primarily reflects S&P's
negative outlook on Ukraine.  S&P considers that sovereign-
related risks will continue to be the highest risks for the
bank's financial profile.  Any lowering of the long-term rating
on Ukraine would prompt a similar action on the ratings on

A revision of the outlook to stable could follow signs of an
easing in the pressure on the sovereign's external financing

U N I T E D   K I N G D O M

BLOCKBUSTER UK: To Close Remaining Stores
BBC News reports that Blockbuster UK, the DVD and games rental
chain that went into administration in January, is to close down
completely after failing to attract a buyer.

Administrators Moorfields Corporate Recovery said all the
remaining 91 UK stores, employing 808 people, would have to
close, according to BBC News.  The report relates that
Blockbuster UK went into administration for a second time in
October and has been closing outlets ever since.

All stores will have ceased operations by December 16, Moorfields
Corporate said.

All remaining stock will be sold by Sunday, December 15, with up
to 90% discount, the report relays.

"It is with regret that we have to make today's announcement, we
appreciate this is a difficult time for all concerned and would
like to thank staff for their professionalism and support over
the past month . . . . Unfortunately, we were unable to secure a
buyer for the group as a going concern and as a result had to
take the regrettable action to close the remaining stores," the
report quoted," joint administrators Simon Thomas and Nick
O'Reilly said, according to the report.

DECO 11-UK: Fitch Lowers Rating on Class B Notes to 'Csf'
Fitch Ratings has downgraded DECO 11 - UK Conduit 3 plc's class
A1-B, A2 and B notes and affirmed the others, as follows:

  GBP101.8m class A1-A (XS0279810468) affirmed at 'Asf'; Outlook
  GBP70.7m class A1-B (XS0279812597) downgraded to 'CCCsf
   from''Bsf'; Recovery Estimate (RE) 85%
  GBP43.2m class A2 (XS0279814452) downgraded to 'CCsf' from
   'CCCsf'; RE0%
  GBP26.2m class B (XS0279815426) downgraded to 'Csf' from
   'CCsf'; RE 0%
  GBP36.1m class C (XS0279816580) affirmed at 'Csf'; RE0%
  GBP28.2m class D (XS0279817398) affirmed at 'Csf'; RE0%

Key Rating Drivers:

The downgrades of the class A1-B, A2 and B notes reflect the
continued performance decline of the Mapeley Gamma and Regent
Capital loans. Mapeley Gamma (56% of the pool) was revalued in
October 2013 at GBP107.8 million, representing a 7% market value
decline since the previous valuation in October 2012. The further
decline demonstrates anticipation of poor re-letting prospects in
many of the secondary properties once tenants roll off, leading
to higher vacancy. Of the 25 properties in the Mapeley Gamma
portfolio, five are currently vacant. This value decline is
broadly in line with Fitch's expectations given the continued
deterioration of the income profile and the secondary nature of
most of the office properties in the portfolio. However, the
appointment of a new asset manager is only expected to occur in
the coming months and a protracted resolution is likely to result
in lower recoveries.

The affirmation of the class A1-A notes reflects recovery
prospects on the remaining loans and the expectation that the
GBP34.8 million Starcham loan will repay in full by the April
interest payment date (IPD). The special servicer published a
notice on 10 December stating that consent to sell the
distribution warehouse property had been granted to the borrower
at a sales price in excess of the Starcham loan balance.
Principal received from the repayment will be applied
sequentially, substantially reducing the class A1-A debt balance.

A September 2013 valuation of the vacant Regent Capital (1.9% of
the pool) property led to a market value decline of 68% since
issuance. No tenant has been found since construction of the
property was completed in 2007. An annuity funded by the Regent
Capital developer, which was previously the only source of income
available to make payments on the loan, is now exhausted and is
therefore receiving no income.

Seven loans are now in special servicing and six loans have
defaulted upon scheduled maturity. While most of the loans have a
cash sweep provision in place, the excess property income being
used to amortize the loans has been insufficient to significantly
reduce leverage.

DECO 11 was originally a securitization of 17 commercial mortgage
loans originated by Deutsche Bank AG, London branch and Capmark
AB No. 2 Limited with an aggregate original balance of GBP444.4m.

Rating Sensitivities:

Fitch estimates 'Bsf' principal recoveries of approximately
GBP162.9 million. A failure to sell the Starcharm property and a
further deterioration in the performance of the Mapeley Gamma
loan is likely to have a detrimental effect on the class A1-A
notes. The junior classes are particularly susceptible to losses
attributable to loan workouts.

FLAMBARDS: Reinstates Staff Who Were Laid Off
--------------------------------------------- reports that staff at Flambards who were
laid off when the theme park went into administration have been

It will not be known how many staff will keep their jobs until a
consultation process takes place in the New Year, according to

The report notes that the Helston theme park went into
administration was then sold by its bank.  The report relates
that it has been bought by Livingstone Leisure Ltd, which is run
by entrepreneur Ian Cunningham.

"We are delighted to have successfully acquired this exciting
opportunity . . . . We have no immediate plans to change any of
the existing facilities. . . . We have now closed Flambards for
the winter in order to fully refurbish the attractions.  We will
reopen for Easter," the report quoted Mr. Cunningham as saying.

GERALD DAVID: Some Shops Saved in Insolvency Deal
------------------------------------------------- reports that Gerald David and Family Ltd has
had some of their retail sites saved by insolvency firm Kirks.

The company went into administration in October due to pressure
from creditors and suppliers who were owed money and had refused
to supply any more stock, according to

"Unfortunately, we had to lay off 43 of the 58 staff and close
five shops.  The five shops closed were Ivybridge, Taunton,
Puxton, Dulverton and Minehead.  We also closed the abattoir,"
the report quoted Administrator David Kirk, of Kirk's Insolvency
in Exeter, as saying.

The report notes that the shops that have now been sold to a new
owner are at Dart's Farm Shop at Topsham, Newton Abbot, in
Fermoys Garden Centre, and Cheddar.  Fifteen jobs have been

The report relates that Mr. Kirk said: "We traded the business
for a month and sought a buyer for those three shops. We had a
number of offers but eventually agreed a sale that completed last
month preserving the remaining jobs and shops.  We are pleased
that out of a very negative situation at least part of the
business will carry on in the future."

Gerald David and Family Ltd a family chain of butchers that went
into administration

GLOBAL MEDIA: Placed into Provisional Liquidation
Chris Barry at The Business Desk reports that Global Media
Corporation has been placed into provisional liquidation on
public interest grounds.

The Insolvency Service said staff at Port Sunlight-based Global
Media had cold-called potential customers claiming to be
affiliated with the police, according to The Business Desk.  The
report relates that it is alleged that diaries and magazines were
not produced or distributed, the report adds.

The report notes that action was taken after an investigation by
the Insolvency Service and a petition and other parties.

Global Media Corporation is a Cheshire company that sold
advertising space in publications promoting the work of the
emergency service.

MAGYAR TELECOM: S&P Raises Corporate Credit Rating to 'CCC+'
Standard & Poor's Ratings Services said it raised to 'CCC+' from
'D' its long-term corporate credit rating on U.K.-based holding
company Magyar Telecom B.V.  The outlook is stable.

S&P also assigned its 'CCC+' issue rating to Magyar Telecom's
EUR150 million senior secured payment-in-kind (PIK) toggle notes
due 2018.  At the same time, S&P withdrew its 'D' issue rating on
the company's EUR350 million senior secured notes due 2016.

The upgrade primarily reflects S&P's view that the company's
capital structure and liquidity have strengthened as a result of
the completed debt restructuring.  This is mostly due to the
significant reduction of its debt through the conversion of
EUR174 million of its existing EUR350 million 9.5% senior secured
notes into equity, and the conversion of EUR155 million notes
into new senior secured PIK toggle notes due 2018.  The PIK
toggle feature of the notes allows the company to accrue interest
in case a portion, or the full amount, of the cash interest
payment due reduces its cash balances below EUR10 million.  While
S&P sees the company's debt burden as unsustainable in the long
term, primarily due to its uncertain ability to pay cash interest
and continued currency mismatches, it do not see a payment
default in 2014 as likely, mostly because of the toggle feature
of the notes.

S&P still assess Magyar Telecom's financial risk profile as
"highly leveraged," under its criteria.  This is because S&P
forecasts the company will generate negative free operating cash
flow (FOCF) of about EUR5 million annually in 2014 and 2015.  In
addition, S&P views Magyar Telecom's liquidity as "less than
adequate," primarily because its currently limited cash balances
do not provide enough protection against low-probability, but
high-impact events.  These could include significant adverse
foreign exchange movements of the Hungarian forint (HUF) against
the euro, a further deterioration of the economic environment, or
additional negative tax impacts, in S&P's view.  The company
generates its revenues almost entirely in HUF, but has to make
interest payments and some of its investments in euros.  In S&P's
base case, it expects that the company's cash balance will
gradually decline to about EUR10 million over the next two years
from about EUR20 million at year-end 2013.

S&P has lowered its assessment of Magyar Telecom's business risk
profile to "vulnerable" from "weak."  This reflects the company's
exposure to unstable government policies in its domestic market,
S&P's expectations of continuing revenue and margin declines in
the next two years because of the fierce competitive environment,
and its financial constraints on making significant investments
in fiber networks.  These factors are partly offset, in S&P's
opinion, by Magyar Telecom's fair market position and extensive
network as the former incumbent telecom operator in 14 concession
areas in Hungary.

"In our base-case scenario, we expect company revenues in euro
terms to decline by low to mid single digits in 2014 and 2015,
following a year-on-year revenue decline of about 7% in the first
nine months of 2013.  In our view, Magyar Telecom's revenues
denominated in HUF will remain constrained by strong competitive
pressures, continued falling voice traffic, and the still-weak
economic environment.  We assume an average foreign exchange rate
of about HUF300 to the euro in our forecast, compared with an
average of about HUF297 in the first nine months of 2013.  At the
same time, we expect the group's reported EBITDA margin,
excluding expenses related to the debt restructuring, to decline
to about 28% to 29% in the next two years from about 30% in the
first nine months of 2013, mostly due to lower gross profits.  In
addition, we forecast a ratio of capital expenditures (capex) to
sales of about 21%-22% over the next two years, leaving very
limited headroom for pre-interest cash flow generation.  Our
EBITDA forecast includes annual payments of about EUR12 million
related to government policies. In addition, the company pays
about EUR3 million in municipality taxes per year," S&P noted.

Magyar Telecom is the holding company of Invitel Tavkozlesi ZRT
(Invitel), the second-largest fixed-line telecommunications,
cable-TV, and broadband Internet services provider in Hungary.

The stable outlook reflects S&P's view that the company will face
no credit or payment crisis in the next 12 months despite its
currently limited cash balances and our expectations of
moderately negative FOCF generation of about EUR5 million in

S&P could raise the rating if the company managed to stabilize
its revenues and EBITDA in 2014, leading to a buildup of its cash
position through free cash flow generation from about
EUR20 million at year end 2013.

S&P could consider a downgrade if the company's available cash
balances declined below EUR10 million as a result of higher than
expected negative FOCF generation.

RAM ACTIVE: Faces Liquidation if Creditor Deal Negotiation Fails
Alliance News reports that RAM Active Media PLC warned that if it
was unable to negotiate an agreement to pay creditors it would
likely face liquidation as it has insufficient funds for its

RAM Media filed an intention to appoint an administrator at court
Wednesday in order to negotiate a creditor's voluntary agreement,
an agreement used to pay creditors, in the hope of recovering
some of its value for shareholders, according to Alliance News.

The report relates that RAM Media said that it had requested
Trevor Binyon of Opus Restructuring LLP to advise its board in
the process of negotiating a creditor's voluntary agreement.  Mr.
Binyon has received "several expressions of interest" in
financing the company, RAM Media said, the report relates.

Alliance News notes that RAM Media said its intention to appoint
an administrator October 21 after its shares were suspended on
AIM as a result of a conflict between shareholders aligned with
former Chairman Tim Baldwin and the current directors.

In September, a group of three shareholders, including two
companies of which Baldwin is a director, requisitioned a general
meeting in an attempt to oust RAM Media's current leadership,
Chairman David Binding and Chief Executive Richard Prosser, the
report recalls.  RAM said that this had increased uncertainty in
the marketplace overs its ability to raise necessary funds, the
report notes.

The report relates that the board is in the process of finalizing
negotiations with several projects that are contingent on
securing new funding, and it said that the conflict with the
former chairman had raised concerns over whether these
negotiations could be completed.  It cautioned that its financial
position is very tight and was unlikely to be resolved without
additional funding, the report discloses.

RSA INSURANCE: Mulls Sale of Peripheral Operations
James Quinn at The Telegraph reports that RSA Group is looking at
selling peripheral operations in eastern Europe, Asia and Latin
America as it attempts to fund the GBP500 million investors think
it needs in fresh capital.

The Telegraph understands that Martin Scicluna, who has taken
control of the FTSE 100 insurer following the exit of chief
executive Simon Lee on Friday, wants to offload non-core

According to The Telegraph, sources indicated that as part of his
group-wide review, he will focus on capital-intensive businesses
that still need further investment, such as Poland, Singapore,
Mexico and Colombia.

It is thought the former Deloitte UK chairman will resist mooting
the sale of one of the group's core businesses, such as Canada,
or Scandinavia, The Telegraph notes.

Although a sale of one of the jewels in the RSA crown would allow
a significant injection of capital, it would also impact profits,
which he is keen to avoid, The Telegraph states.  His review, in
its early stages, is believed to be focused on how he can sell
businesses that are still in an investment phase, The Telegraph

Mr. Scicluna moved up from non-executive to executive chairman in
the wake of RSA's third profit warning in six weeks on the back
of its continued troubles in its Ireland operations, which
required a fresh GBP130 million capital injection in addition to
GBP70 million in November, The Telegraph relates.

In addition to selling off peripheral country operations,
Mr. Scicluna is thought likely to look at ways of managing its
existing portfolio, perhaps by stopping writing certain lines of
business for a while to get a handle on capital outflows, The
Telegraph states.

RSA Insurance Group plc is a multinational general insurance
company headquartered in London, United Kingdom.  It has over 17
million customers in 140 countries across the World.

SCOOT COAL: No More Money Left if Forced to Follow SEPA Licenses
The Extra News reports that environmentalists have welcomed a
court decision to stop a bankrupt coal firm from abandoning its
responsibility to prevent pollution so it can pay off its

The Scottish Coal Company, which is in liquidation, argued there
may be no money left to pay its debts if it is forced to comply
with Scottish Environment Protection Agency (Sepa) licenses to
minimize the risk of water pollution and other issues, according
to The Extra News.

The report relates that a judge previously backed the company's
right to "abandon" some of its land and thereby disclaim
responsibility for the licenses, but this decision was appealed
against by Sepa, the Lord Advocate and local authorities in East
Ayrshire and South Lanarkshire, where the mines are based.

The report notes that the Court of Session has now reversed the
judge's decision and ruled that "a person cannot abandon land, in
such a way as to render it ownerless, and thus avoid any
obligations which run with the land".

Lang Banks, director of environmental group WWF Scotland, said:
"Polluters must never be allowed to profit at the expense of the
environment or communities, so we very much welcome this ruling.
We hope it will help ensure that those responsible for
environmental damage are held to account now and in the future,
the report relates.

"This whole saga underlines yet again why Scotland should be
drawing a line under the extraction and use of fossil fuels such
as coal," Mr. Banks said, the report notes.

"[the] ruling is a welcome injection of common sense, and I
commend Sepa for bringing the appeal.  The coal industry must
face up to its legacy and fulfill its obligations to maintain and
restore the environment that it has wrecked.  While ministers
continue to block a public inquiry, I hope today's ruling
underlines the need for an urgent look into the wider financial
mess that is coal mine restoration. The public has a right to
know what went wrong," the report quoted Green MSP Patrick Harvie
as saying.

The report notes that Blair Nimmo, of Scottish Coal liquidator
KPMG, said: "The complexity of the issues raised in Scottish
Coal's liquidation was unprecedented and we had no option but to
seek the guidance of the Court of Session to determine how to
proceed, the report relays.

"While we consider whether a further appeal is in the best
interests of Scottish Coal's creditors, we will continue to
liaise with all parties affected by the liquidation of Scottish
Coal," the report quoted Mr. Nimmo as saying.

"Unfortunately, the Court of Session's decision does nothing to
solve the environmental damage left behind.  In practical terms
it simply means the funds we have generated from liquidating the
assets of Scottish Coal will continue to be applied towards the
care and maintenance of the sites, as they have been since our
appointment, Mr. Nimmo said, the report relates.

"However, in the context of the overall costs of restoration,
these funds are simply a drop in the ocean. As has been the case
since our appointment in April 2013, any long-term practical
solution for these sites would still require the involvement of
another party or parties. . . . We would therefore urge the
public bodies who are already engaged in attempting to find
solutions to redouble their efforts as the court decision does
not solve the problem, Mr. Nimmo said, the report relates.

"Following the decision, we will continue to work in partnership
with the Scottish Government, Scottish Minister for Energy Fergus
Ewing, the Scottish Mines Restoration Trust, Sepa and the
affected local authorities in an attempt to facilitate a long-
term solution which benefits all parties," Mr. Nimmo added, the
report discloses.

SPREAD EAGLE: Goes Into Administration
This is Local London reports that a newly-revamped 17th century
coaching inn and fine-dining restaurant in Greenwich has gone
into administration.

The Spread Eagle, in Stockwell Street, is now being managed by
Griffins administrators Stephen Hunt and Timothy Bramston who
were appointed on November 29, according to This is Local London.

The tavern, which was refurbished last year, is owned by company
Greenwich Inc. which runs other Greenwich favorite's like
Trafalgar Tavern, The Admiral Hardy, as well as facilities at the
O2 including American Sports Bar and Grill and Inc Club.

VISTEON UK: MPs to Debate Workers' Pensions Campaign
---------------------------------------------------- reports that Member of Parliaments will hold a debate
over car manufacturer Ford's moral duty to former Visteon workers
who lost their pensions when their employer went into

Visteon UK went into administration in 2009 with 3,000 workers
losing their jobs, according to  The report relates that
the majority of workers transferred to Visteon from Ford and was
promised their terms and conditions would be protected.

Following a long campaign and several sit-ins, a fair redundancy
settlement was reached, but the workers lost 45% of their pension
entitlement, the report notes.

Large numbers of pensioners from the four ex Ford/Visteon sites
in Swansea, Belfast, Basildon and Enfield will attend the debate,
the report relates.

Unite national officer Roger Maddison said: "Ford has a legal and
moral obligation to the thousands of ex-employees who paid into
its pension scheme all their working lives.  We believe the
government should be putting pressure on Ford to pay up," the
report adds.


* Fitch Takes Rating Actions on European Synthetic CDOs
Fitch Ratings has downgraded and withdrawn three tranches,
affirmed 11 others and upgraded another tranche of European
synthetic corporate collateralized debt obligations (CDOs). A
full list of rating actions can be found at the end of this

Fitch has downgraded the three tranches of Aphex Capital Plc.
Series 2006 34-36 to 'Dsf' and withdrawn the ratings as the notes
were cancelled in May 2013 and exchanged for the underlying
charged assets (tranche A of AyT Cedulas Cajas X, FTA -
ISIN:ES0312342001). Given a high likelihood of default and a
material reduction in economic terms for the noteholders
following the exchange, Fitch determined that the notes have been
subject to a Distressed Debt Exchange and withdrew the notes
rating in line with published criteria.

As a result of the fast approaching maturity date (June 2014) on
Constellations Synthetic CDO Tranche 11-A-EUR1, Fitch has
upgraded the transaction's rated notes to 'B-sf' from 'CCCsf'.
Credit enhancement of 3.21% was sufficient to withstand the
agency's 'B-sf' rating stress scenario; however, the
transaction's 'CCC'-rated underlying reference assets (4.51% of
the outstanding reference portfolio) remain a risk and the notes
would become vulnerable to default should the six largest
entities in this bucket default before the maturity date. The
'CCC' bucket currently contains nine entities.

The affirmations reflect adequate credit enhancement levels and
the stable performance of European synthetic corporate CDOs
during 2013 which saw no new credit events. Approaching
maturities favor the transactions, with remaining risk horizons
to maturity ranging from six to 1.75 years.

For Omega Capital Investments Plc. Series 43 (Waypoint CDO), the
transaction's reference portfolio was reduced in June 2013 by
21.6% as the protection offered on 29 entities matured. This
resulted in an increase in credit enhancement and as a result
Fitch has revised the Outlook on all rated notes (classes A-1E,
A-1J, B-1E, B-1J and C-1E) to Stable from Negative.

Following a further year without credit events and the reducing
risk horizons, Fitch has amended the recovery estimates (RE)

The rating actions are as follows:

Alexandria Capital Series 2004-12A: KARNAK CDO
Class A2b: affirmed at 'CCCsf'; RE 0%
Class A4b: affirmed at 'CCsf'; RE 0%

Aphex Capital plc Series 2006 34-36
Series 36: downgraded to 'Dsf' from 'CCCsf'; rating withdrawn
Series 35: downgraded to 'Dsf' from 'CCsf'; rating withdrawn
Series 34: downgraded to 'Dsf' from 'CCsf'; rating withdrawn

Constellations Synthetic CDO Tranche 11-A-EUR1
Series 11-A-EUR1: upgraded to 'B-sf' from 'CCCsf'; Outlook Stable

Credit-Linked Enhanced Asset Repackagings (C.L.E.A.R.) Series 53
Class A: affirmed at 'CCsf'; RE 0%
Class B: affirmed at 'CCsf'; RE 0%

Oakham Rated 2 S.A.
Series 2: affirmed at 'CCsf'; RE 15%
Omega Capital Investments plc Series 43 (Waypoint CDO)
Class A-1E: affirmed at 'BBsf'; Outlook revised to Stable from
Class A-1J: affirmed at 'BBsf'; Outlook revised to Stable from
Class B-1E: affirmed at 'Bsf'; Outlook revised to Stable from
Class B-1J: affirmed at 'Bsf'; Outlook revised to Stable from
Class C-1E: affirmed at 'Bsf'; Outlook rrevised to Stable from

Xelo III Plc Series 2005 (Firecrest 3)
Firecrest 3: affirmed at 'CCsf''; RE 65%

Rating Sensitivities:

Applying a 1.25x default rate multiplier to all assets in the
portfolio would not result in a downgrade of any of the notes.
Applying a 0.75x recovery rate multiplier to all assets in the
portfolio would not result in a downgrade of any of the notes.

* Fitch Says Credit Profiles of EMEA E&C Issuers Stronger
Fitch Ratings says credit profiles of EMEA engineering and
construction issuers (E&C) are stronger going into 2014, allowing
for moderate bolt-on acquisitions or higher investment in
infrastructure concession assets.

This follows years of organic international growth, divestment
strategies and dividends from infrastructure concession assets,
which allowed Fitch-rated EMEA E&C issuers to offset a dismal
European construction market in 2013.

In a report published, Fitch says it expects the investment cycle
to reverse in 2014, which may increase aggregate leverage for the
sector modestly, following years of deleveraging from divestment
strategies. E&C issuers are more likely to take equity stakes in
concession projects that they also build and design as the sector
moves towards a more integrated approach.

The E&C outlook varies across countries and is dependent on
fiscal flexibility within each country, with emerging markets
offering significant opportunities to offset the still declining
European market. Around 65% of the aggregate order book for the
sector is focused outside domestic markets with a bias toward
emerging markets, driven by Ferrovial (BBB-/Stable), OHL (BB-
/Stable) and Abengoa (B+/Stable).

Weaker rated issuers with project concentration risk and a
limited track record in their countries of operations are at
greater risk of project losses. However, to varying degrees this
inherent sector risk is incorporated into the issuer's business
risk profiles and current ratings.

Higher rated peers with strong liquidity are able to be selective
when tendering for contracts without facing pressures to compete
for thin-margin projects to secure continued favorable working
capital from advance payments.

Fitch expects a faster pace of bank debt disintermediation in a
sector where companies are mostly unrated and have therefore
relied on bank lending. This follows inaugural bond issuance
during 2013 from Salini (BB/Stable) and Astaldi (B+/Positive)
that refinanced the majority of their bank debt. The
concentration of internationally focused E&C players based in
countries with weak banking markets and a desire to fund their
business with medium-term debt is a structural driver of this


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
publication in any form (including e-mail forwarding, electronic
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 * * *