TCREUR_Public/140130.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

           Thursday, January 30, 2014, Vol. 15, No. 21

                            Headlines

A U S T R I A

ALPINE SA: Mulls Selling Romanian Assets
AVW INVEST: World's Biggest Gold Coin Sold for EUR3 Million


C R O A T I A

HRVATSKA BANKA: S&P Cuts LT Issuer Credit Rating to 'BB'
HZ CARGO: Future Hinges on Successful Restructuring
ZAGREB CITY: S&P Cuts LT Issuer Credit Rating to 'BB'


G E R M A N Y

BAYERISCHE LANDESBANK: Fitch Cuts Rating on Tier 2 Debt to 'BB'
GROHE HOLDING: S&P Affirms 'B-' CCR & Removes It From CreditWatch
WELTBILD GMBH: German Church Agrees to EUR65 Million Aid


G R E E C E

EXCEL MARITIME: U.S. Court Confirms Bankruptcy-Exit Plan
GREECE: EU Ministers Call for Speedy Bailout Creditor Talks
LITHOS MORTGAGE: Fitch Affirms 'B-' Ratings on Three Note Classes


I R E L A N D

ALLIED IRISH: Seeks to Reinstate Bank Bonuses for Executives
DOONBEG: Kiawah Partners Puts Golf Resort into Receivership
MOUNT CARMEL: Unions Meet with Liquidator Following Collapse


I T A L Y

ICCREA BANCAIMPRESA: Moody's Raises LT Deposit Rating to 'Ba2'


L U X E M B O U R G

ARDAGH PACKAGING: S&P Affirms 'B' LT Corp. Credit Ratings


N E T H E R L A N D S

CHEYNE CREDIT: Fitch Affirms 'BBsf' Rating on Cl. V Certificates
FRESENIUS FINANCE: Moody's Assigns 'Ba1' Rating to EUR200MM Notes
LEOPARD CLO II: Moody's Affirms 'Ca' Rating on EUR8.25MM Notes
ORYX EUROPEAN: S&P Raises Rating on Class D Notes From 'BB+'
ZIGGO BOND: S&P Puts 'BB' Corp. Credit Rating on CreditWatch Neg.

ZIGGO NV: Moody's Places 'Ba1' CFR Under Review for Downgrade


P O L A N D

P4 SP ZOO: Fitch Assigns 'B+' Long-Term IDR; Outlook Positive


P O R T U G A L

ENERGIAS DE PORTUGAL: S&P Affirms 'BB+/B' CCRs; Outlook Stable
PORTUGAL: Mulls "Clean" International Bailout Exit


R O M A N I A

CARPATAIR SA: Gets OK to Restructure Under Bankruptcy Protection


R U S S I A

EUROPEAN TRUST: Moody's Cuts Currency Deposit Ratings to 'Caa3'
EUROPEAN TRUST: Moody's Cuts National Scale Rating to 'Caa3.ru'


S P A I N

IM PASTOR 4: S&P Lowers Rating on Class D Notes to 'D(sf)'


U K R A I N E

PRAVEX-BANK: Fitch Puts 'B-' IDR on Rating Watch Negative
UKRAINE: S&P Lowers Sovereign Credit Ratings to 'CCC+'/C'
UKRAINIAN RAILWAYS: S&P Alters Outlook to Stable & Affirms B- CCR


U N I T E D   K I N G D O M

ALAWAY LTD: Goes Into Administration
ARROW GLOBAL: S&P Assigns 'B+' Credit Rating; Outlook Stable
BARNETTS: In Administration, Breaks Into Four Firms
CLWYD LEISURE: Considers Liquidation After Funds Pulled
COBBETTS LLP: Insolvency Costs Nearing GBP1 Million, KMPG Says

CO-OPERATIVE BANK: Baker-Bates Assisted Flowers in FSA Interview
DUNSLEY HALL: In Administration, Continues to Trade
HEADEN AND QUARMBY: In Administration, Cuts 33 Jobs
HERO ACQUISITIONS: Moody's Assigns 'B2' CFR; Outlook Stable
LIBERTY GLOBAL: Moody's Affirms 'Ba3' CFR; Outlook Stable

MERGERMARKET GROUP: Moody's Corrects January 15 Rating Release
OVERTON RECYCLING: Environcom Buys Firm Out of Administration
REDIRACK: In Administration, Cuts 89 Jobs
STEWART LINFORD: In Administration, Closes Business

* SCOTLAND: Corporate Insolvencies Drop 27% in 2013


                            *********


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A U S T R I A
=============


ALPINE SA: Mulls Selling Romanian Assets
----------------------------------------
Balkans.com, citing capital.ro, reports that Austrian constructor
Alpine, which filed for insolvency in September 2013 (three
months after the mother-company in Austria filed for bankruptcy),
is searching for a new recover strategy which implies selling
their Romanian assets to an investor.

"The recovery strategy for the company in Romania is based on
separating Alpine SA from the Austrian group and working
independently. We're looking for an investor to take over the
capital and finance the company. We're looking to save jobs and
bring Alpine SA back in the economic circuit," the report quotes
Rudolf Vizental, Managing Partner for House of Insolvency
Transilvania, as saying.

Balkans.com relates that the Romanian branch entered insolvency
with debts of over EUR80 million, Alpine Bau being the biggest
creditor, with BCR also on the roll as a guaranteed creditor.
Alpine Bau's bankruptcy, the second biggest construction firm in
Austria, generated the dissolution of all the contracts under
Alpine SA's management in Romania.  Balkans.com says the
development sites the company was working on were closed and 440
workers were sent home. Alpine SA's major project included
Brasov's traffic belt and a segment from the Nadlac-Arad highway.

According to Balkans.com, Alpine had a turnover of EUR115 million
in 2012, making it one of the most active foreign constructors in
the local market. The Alpine case is a complete disaster for the
real estate market in Austria, which hasn't been confronted with
situations like these since after the Second World War.
Currently, Alpine has closed up shop and is being sold piece by
piece, after the creditors refused to supply EUR3 million to
finish the projects the company had in development, the report
notes.

Alpine Bau GmbH is Austria's second biggest construction group.
Alpine Bau, owned by Spain's Fomento de Construcciones y
Contratas SA, filed for insolvency on June 19, 2013, with
liabilities of EUR2.56 billion (US$3.4 billion).


AVW INVEST: World's Biggest Gold Coin Sold for EUR3 Million
-----------------------------------------------------------
Reuters reports that a Spanish precious metals trading company
bought the world's largest gold coin for EUR3.27 million, its
exact material worth, from the estate of AvW Invest at a rare
auction in Vienna on January 24.

Reuters relates that the 100 kg (220.5 lb) piece, one of only
five Canadian $1,000,000 Maple Leaf coins the Royal Canadian Mint
has ever produced, was snapped up immediately in a written bid
from ORO direct, a gold trading company based in Madrid.

The news agency says there were no counteroffers in an auction
room packed with more journalists than potential buyers. It sold
for the catalog sum, the coin's pure gold value based on
Jan. 4's market price. This was four times its face value.

The auction was ordered by the administrator of AvW Invest, which
filed for insolvency in May after its owner and chief executive
was arrested on suspicion of fraud, breach of trust and other
charges, Reuters notes.

AvW Invest AG is an Austrian investment and venture-capital
company.



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C R O A T I A
=============


HRVATSKA BANKA: S&P Cuts LT Issuer Credit Rating to 'BB'
--------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term issuer
credit rating on Croatian 100% state-owned development bank,
Hrvatska banka za obnovu i razvitak (HBOR) to 'BB' from 'BB+'.
At the same time, S&P affirmed the short-term ratings at 'B'.
The outlook is stable.

The ratings on HBOR are equalized with those on Croatia.  S&P
assess as "almost certain" the likelihood that the sovereign
would provide sufficient and timely extraordinary support to HBOR
in the event of financial distress.  S&P bases its assessment of
HBOR on its view of the bank's:

   -- "Critical" public policy role as the main operator of the
      government's economic, social, and political policy --
      namely, the sustainable development of the Croatian economy
      and the promotion of exports.  The bank's role has widened
      since its formation, and its role has evolved as the
      government's strategic goals for the social and economic
      development of the country have evolved. In view of the
      government's economic agenda, S&P believes that HBOR will
      continue to play a vital role.

   -- "Integral" link with Croatia, demonstrated by the state's
      100% ownership, regular oversight, and injections into the
      bank's capital.  HBOR benefits from a public policy mandate
      and strong government support.  Croatia guarantees all of
      HBOR's obligations unconditionally, irrevocably and at
      first demand, without issuing a separate guarantee
      instrument. The government is closely involved in defining
      HBOR's strategy; the Supervisory Board includes the
      ministers of finance and economy, who serve as president
      and vice president of the board, as well as the ministers
      of regional development and EU funds, agriculture, tourism,
      and entrepreneurship and trade.

The stable outlook on HBOR reflects the outlook on Croatia.  S&P
could raise or lower the ratings or revise the outlook on HBOR if
it raised or lowered its sovereign ratings on Croatia or if it
revised the outlook on Croatia.

S&P could lower the ratings on HBOR if it revised its view of the
likelihood of sufficient and timely extraordinary support from
the Republic of Croatia, for example if the government were to
reconsider HBOR's role in, and link to, the government.


HZ CARGO: Future Hinges on Successful Restructuring
---------------------------------------------------
Djordje Daskalovic at SeeNews reports that Croatian transport
minister Sinisa Hajdas Doncic said HZ Cargo has a future but will
have to slash 1,100 jobs, cut salaries by 20%, shed non-core
assets and reduce severance costs.

On Friday, the transport ministry said it has called off the
privatization talks with Romania's Grup Feroviar Roman for a
majority stake in HZ Cargo, saying the selected buyer had
backtracked significantly on the terms of the submitted binding
offer for the rail freight carrier, SeeNews relates.

According to SeeNews, Mr. Doncic said in a statement on Monday
that if within the next two weeks the management of HZ Cargo
reaches an agreement with the social partners on meeting the
conditions set by the government, the latter is ready to provide
HRK230 million (US$41.1 million/EUR30.1 million) for the
company's restructuring.

Mr. Doncic, as cited by SeeNews, said that if the restructuring
preconditions are not met with a positive response within the
specified deadline, HZ Cargo will enter bankruptcy and
liquidation.

HZ Cargo is a state-owned rail freight carrier.


ZAGREB CITY: S&P Cuts LT Issuer Credit Rating to 'BB'
-----------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term issuer
credit ratings on the City of Zagreb to 'BB' from 'BB+'.  The
outlook is stable.

As a "sovereign rating" (as defined in EU CRA Regulation
1060/2009 [EU CRA Regulation]), the ratings on ZAGREB are subject
to certain publication restrictions set out in Art 8a of the EU
CRA Regulation, including publication in accordance with a pre-
established calendar.  Under the EU CRA Regulation, deviations
from the announced calendar are allowed only in limited
circumstances and must be accompanied by a detailed explanation
of the reasons for the deviation.  In this case, the deviation
has been caused by the events described BELOW.

Rationale

The downgrade reflects S&P's similar action on Croatia.

Under S&P's methodology, a local or regional government (LRG) can
be rated higher than its sovereign if S&P believes that it
exhibits certain characteristics, as described in "Ratings Above
The Sovereign -- Corporate And Government Ratings: Methodology
And Assumptions," published Nov. 19, 2013.

S&P do not currently believe that Croatian LRGs, including
Zagreb, meet these conditions.  Consequently, S&P do not see a
possibility that it could rate Zagreb higher than Croatia.

The ratings on Zagreb also reflect its position as the
administrative, financial, and commercial center of Croatia,
which has enabled it to amass moderately high wealth levels and
supports the city's continuing robust budgetary performance and
low direct debt.

These factors are constrained by the city's weak liquidity,
limited debt-raising capacity, and the limited predictability of
its finances in the context of a consolidating, but uneven,
institutional framework.  S&P's assessment of the city's
management weighs on the rating on Zagreb, largely because of its
expansionist spending policy before the economic crisis.  The
city also suffers from high contingent liabilities due to an
ongoing dispute with the Ministry of Finance.  Zagrebacki Holding
d.o.o., which is owned by the city and provides essential
municipal services, has a high level of indebtedness that also
constrains the city's budgetary flexibility and increases its
level of tax-supported debt.

Outlook

The stable outlook on Zagreb mirrors that on Croatia.  S&P would
raise the ratings on Zagreb if it raised the sovereign ratings,
as long as the city maintains a strong budgetary performance with
a surplus after capital accounts and a modest debt burden, and
experiences no deterioration of its liquidity position.

S&P would lower the ratings on Zagreb if it lowered the ratings
on Croatia.  S&P could also lower the rating on Zagreb if it
revised downward its assessment of the supportiveness and
predictability of the institutional framework under which
Croatian local governments operate, accompanied by a significant
deterioration in the city's liquidity position.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable.  At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee
by the primary analyst had been distributed in a timely manner
and was sufficient for Committee members to make an informed
decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.  The chair
ensured every voting member was given the opportunity to
articulate his/her opinion.  The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook.

RATINGS LIST

Downgraded; CreditWatch/Outlook Action
                                   To            From
Zagreb (City of)
Issuer Credit Rating              BB/Stable/--  BB+/Negative/--



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G E R M A N Y
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BAYERISCHE LANDESBANK: Fitch Cuts Rating on Tier 2 Debt to 'BB'
---------------------------------------------------------------
Fitch Ratings has downgraded Bayerische Landesbank's (BayernLB)
and Landesbank Baden-Wuerttemberg's (LBBW) lower Tier 2 debt
instruments to 'BB' and 'BB+', respectively, from 'BBB+ and
removed them from Rating Watch Negative (RWN).  At the same time,
Fitch has downgraded HSH Nordbank AG's (HSH) lower Tier 2 debt
instruments to 'B-' from 'BBB-' and revised the Rating Watch to
Evolving (RWE) from Negative.

The Landesbanken's lower Tier 2 debt instruments have been
downgraded to one notch below their respective Viability Ratings
(VR) as the anchor rating.  The downgrade stems from revised
state aid rules that came into effect on August 1, 2013.  Fitch
believes that the rules will make it difficult for federal states
to support their respective Landesbanken without some form of
burden-sharing affecting subordinated debtholders.  Fitch
therefore considers it is no longer appropriate to use an Issuer
Default Rating (IDR) based on state support as the anchor rating
for Landesbankens' lower Tier 2 subordinated debt ratings.

Fitch's understanding is that a Landesbank that receives state
aid will be required by the European Commission (EC) to impose
losses on subordinated debtholders, most likely through a
liability management exercise.  In Fitch's view, there is a clear
political intent to enforce burden-sharing onto banks in the EU
in receipt of state aid according to the European Commission's
"Proposal for a directive establishing a framework for the
recovery and resolution of credit institutions and investment
firms" of 28 June 2013 and its "Communication from the commission
on the application, from 1 August 2013, of state aid rules to
support measures in favour of banks in the context of the
financial crisis" dated 12 July 2013.

As the VR is the new anchor rating for Landesbanken BayernLB's,
LBBW's and HSH's lower Tier 2 subordinated debt ratings they are
sensitive to any change in the banks' respective VRs.

In line with HSH's VR, its subordinated debt ratings have been
placed on RWE.  At end-June 2013, HSH restored the existing
guarantee shield on its portfolio to its initial level of EUR10
billion, from EUR7 billion.  Fitch views it as uncertain whether
the recent capital support measures by the federal state owners
will be approved by the EC or whether EC approval would require
broader restructuring measures by the bank.  Fitch will resolve
the RWE once there is greater clarity about the EC's decision and
respective potential compensatory requirements. Fitch expects
this to become clear by 2H14.

The rating actions are as follows:

Bayerische Landesbank:

  -- EUR1bn 5.75% Lower Tier 2 subordinated notes (XS0326869665)
     downgraded to 'BB' from 'BBB+'; off RWN

  -- EUR100m variable rate notes (DE000BLB24U6) downgraded to
     'BB' from 'BBB+'; off RWN

  -- EUR750m Lower Tier 2 subordinated notes (XS0285330717)
     downgraded to 'BB' from 'BBB+'; off RWN

Landesbank Baden-Wuerttemberg:

  -- EUR21m floating rate notes (USU122163020) downgraded to
     'BB+' from 'BBB+'; off RWN

  -- EUR29mn 7.5% notes (USU122162030) downgraded to 'BB+' from
     'BBB+'; off RWN

HSH Nordbank:

  -- EUR1bn step up callable subordinated notes (DE000HSH2H23)
     downgraded to 'B-'/RWE from 'BBB-'/RWN

  -- EUR750m variable rate subordinated notes (DE000HSH2H15)
     downgraded to 'B-'/RWE from 'BBB-'/RWN


GROHE HOLDING: S&P Affirms 'B-' CCR & Removes It From CreditWatch
-----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B-' long-term
corporate credit rating on Grohe Holding GmbH, the indirect
parent of Germany sanitary fittings manufacturer Grohe AG.  At
the same time, S&P removed the long-term corporate credit rating
on Grohe from CreditWatch, where it placed it with positive
implications on Sept. 27, 2013.  Subsequently, S&P withdrew the
corporate credit rating at the issuer's request.  At the time of
the withdrawal the outlook was positive.

In addition, S&P removed its issue ratings on Grohe's debt from
CreditWatch positive and withdrew them.  S&P also withdrew its
recovery ratings on the debt.

The CreditWatch resolution and rating affirmation follows the
completion of the acquisition of Grohe by Japan-based building
products manufacturer and distributor LIXIL Corp. and the
Development Bank of Japan.  The acquisition activated change-of-
control clauses that triggered the repayment of Grohe's
outstanding debt, which will be completed by trustees on Feb. 17.
S&P understands that Grohe will be funded by its new owners and
Japanese banks going forward, and are withdrawing the ratings on
Grohe, at the issuer's request.


WELTBILD GMBH: German Church Agrees to EUR65 Million Aid
--------------------------------------------------------
The Associated Press reports that Roman Catholic church officials
in Germany have agreed to contribute up to EUR65 million (US$89
million) to help employees of Weltbild GmbH.

Weltbild, whose owners include 12 Roman Catholic dioceses,
applied for insolvency Jan. 10. It pointed to declining sales and
projections of lower revenue over the next three years.

AP says the company has more than 6,000 employees in total though
not all of its activities are directly affected by the
insolvency.

AP relates that the German Bishops Conference said on Jan. 28
bishops are aware they share responsibility for the employees. It
said an assembly of diocese officials approved providing a
maximum EUR65 million to help keep Weltbild's business going and
possibly finance future help for employees, the news agency
reports.

Weltbild is a Roman Catholic Church of Germany-owned bookseller.
The company relies on sales from catalogues and is part-owner of
Germany's second biggest brick-and-mortar bookstore chain
Hugendubel.



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G R E E C E
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EXCEL MARITIME: U.S. Court Confirms Bankruptcy-Exit Plan
--------------------------------------------------------
Excel Maritime Carriers Ltd. on Jan. 27 disclosed that the United
States Bankruptcy Court for the Southern District of New York
confirmed the Amended Joint Chapter 11 Plan of Reorganization,
which has the support of the Company's senior secured lenders and
unsecured creditors.  The Plan was unanimously accepted by
Excel's two voting classes, with 100% of the class of secured
lenders and approximately 92% of the class of impaired Excel
general unsecured creditors, by value, voting in favor.  Excel
expects to emerge from Chapter 11 in mid-February 2014.

Upon completion of the restructuring process, the Company's total
prepetition debt of US$920 million will be reduced to
approximately US$300 million.  Gabriel Panayotides, Chairman of
the Board, together with the other members of Excel's management
team, will continue to lead the Company.

Excel's operations have continued in the ordinary course
throughout the restructuring process and it will continue
providing high-quality and efficient seaborne transportation
services moving forward.

The Company would like to thank its advisors, Skadden, Arps,
Slate, Meagher & Flom LLP and Miller Buckfire & Co. LLC, as well
as the advisors of its creditors.

                           Settlement

Judge Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York on Jan. 27, 2014, confirmed Excel
Maritime's Amended Joint Chapter 11 Plan of Reorganization after
determining that the Plan complies with all requirements for
confirmation under the Bankruptcy Code.

Judge Drain approved Ivory Shipping Inc.'s (x) settlement and
release of all of its claims to and waiver of all of its rights
in respect of certain escrow funds, and (y) contribution to Excel
of at least US$5 million and up to an additional US$10 million in
cash.  The provisions of the Plan, including the Ivory
Investment, will constitute a good-faith compromise and
settlement of Adversary Case No. 13-08338.  In exchange for the
foregoing, Ivory will receive 1,739,231 shares of New Common
Stock, representing up to 8.7% of the New Common Stock.

Judge Drain also approved Robertson Maritime Investors, LLC's (i)
waiver of all objections to confirmation of the Plan, (ii) waiver
of any purported right to participate or share in any
distributions to be made under the Plan, (iii) withdrawal of all
of RMI's proofs of claims filed against the Debtors, (iv)
acknowledgment that, on and after the Effective Date, the right
of first offer contained in the Christine Shipco LLC Agreement
will not be triggered in the case of a transfer of all or any
part of the interest of a member of Christine Shipco to an
affiliate of the transferring member, and (v) acknowledgement
that Christine Holdings is the second member of Christine Shipco.

The Jan. 23 version of the Plan provides for the following
treatment of claims:

   * The Syndicate Credit Facility Secured Claims will be allowed
     in the aggregate amount of US$579 million.  Each holder of
     an Allowed Syndicate Credit Facility Secured Claim will
     receive its pro rata share of (a) the Amended and Restated
     Senior Secured Credit Facility, and (b) 16.7 million shares
     of New Common Stock, representing 83.3% of all New Common
     Stock to be issued under the Plan.

   * The aggregate amount of the Syndicate Credit Facility
     Deficiency Claims will be either US$179.8 million, if the
     Adequate Protection Payment is made on or before Jan. 2,
     2014, or US$185,930,760, if the Adequate Protection Payment
     is not made by Excel on or before Jan. 2, 2014, and will be
     Allowed solely for voting purposes in the applicable amount
     in connection with the Plan and those claims will be
     included within the class of Impaired Excel General
     Unsecured Claims.  Each Holder of an Allowed Impaired Excel
     General Unsecured Claim will receive (a) its Pro Rata share
     of 1.6 million shares of New Common Stock, representing 8.0%
     of the New Common Stock to be issued under the Plan, and (b)
     its Pro Rata share of the Tranche A Offered Shares and
     Tranche B Offered Shares subscribed for pursuant to the
     Holders' Co Investment Rights.

   * The claims held by holders of Excel's 1.875% unsecured
     convertible senior notes will be allowed on the Effective
     Date in the amount of US$152,005,566, on account of unpaid
     principal and interest due and owing as of the Petition
     Date.

   * The Holder of Christine Shipco Facility Secured Guaranty
     Claim will have the claim reinstated on the Effective Date.
     Holders of Other Secured Claims and Unimpaired Subsidiary
     Debtor General Unsecured Claims will also have their claims
     reinstated on the Effective Date.

   * Holders of Impaired Subsidiary Debtor General Unsecured
     Claims will not receive or retain any property under the
     Plan.

The fourth addendum to the Plan supplement provides that the
initial boards of directors of Reorganized Excel and Holdco will
be the following:

   (1) Ken Liang, Managing Director, Oaktree Capital Management,
       L.P.

   (2) Mahesh Balakrishnan, Senior Vice President, Oaktree
       Capital Management L.P.

   (3) Jennifer Box, Senior Vice President, Oaktree Capital
       Management L.P.

   (4) Gabriel Panayotides, Chief Executive Officer, Excel
       Maritime Carriers Ltd.

   (5) Apostolos Kontoyannis, Director, Excel Maritime Carriers
       Ltd.

   (6) Randee E. Day, President & CEO, Day & Partners, LLC

   (7) Danielle Leone, Director, Angelo, Gordon & Co.

A full-text copy of the Amended Joint Plan dated Jan. 23, 2014,
is available at:

     http://bankrupt.com/misc/EXCELMARITIMEplan0123.pdf

                       About Excel Maritime

Based in Athens, Greece, Excel Maritime Carriers Ltd. --
http://www.excelmaritime.com/-- is an owner and operator of dry
bulk carriers and a provider of worldwide seaborne transportation
services for dry bulk cargoes, such as iron ore, coal and grains,
as well as bauxite, fertilizers and steel products.  Excel owns a
fleet of 40 vessels and, together with 7 Panamax vessels under
bareboat charters, operates 47 vessels (5 Capesize, 14 Kamsarmax,
21 Panamax, 2 Supramax and 5 Handymax vessels) with a total
carrying capacity of approximately 3.9 million DWT.  Excel
Class A common shares have been listed since Sept. 15, 2005, on
the New York Stock Exchange (NYSE) under the symbol EXM and,
prior to that date, were listed on the American Stock Exchange
(AMEX) since 1998.

The company blamed financial problems on low charter rates.

The balance sheet for December 2011 had assets of US$2.72 billion
and liabilities totaling $1.16 billion.  Excel owes US$771
million to secured lenders with liens on almost all assets.
There is US$150 million owing on 1.875 percent unsecured
convertible notes.

Excel Maritime filed a Chapter 11 petition (Bankr. S.D.N.Y. Case
No. 13-23060) on July 1, 2013, in New York after signing an
agreement where secured lenders owed US$771 million support a
reorganization plan filed alongside the petition.  The Debtor
disclosed US$35,642,525 in assets and US$1,034,314,519 in
liabilities as of the Chapter 11 filing.

Excel, which sought bankruptcy with a number of affiliates, has
tapped Jay M. Goffman, Esq., Mark A. McDermott, Esq., Shana E.
Elberg, Esq., and Suzanne D.T. Lovett, Esq,. at Skadden, Arps,
Slate, Meagher & Flom LLP, as counsel; Miller Buckfire & Co. LLC,
as investment banker; and Global Maritime Partners Inc., as
financial advisor.

A five-member official committee of unsecured creditors was
appointed by the U.S. Trustee.  The Creditors' Committee is
represented by Michael S. Stamer, Esq., Sean E. O'Donnell, Esq.,
and Sunish Gulati, Esq., at Akin Gump Strauss Hauer & Feld LLP,
in New York; and Sarah Link Schultz, Esq., at Akin Gump Strauss
Hauer & Feld LLP, in Dallas, Texas.  Jefferies LLC serves as the
Committee's investment banker.

John J. Monaghan, Esq. -- john.monaghan@hklaw.com -- at Holland &
Knight LLP, serves as counsel to the Steering Committee.

Roberston Maritime Investors LLC is represented by Hugh Ray,
Esq., at McKool Smith.  Oaktree Capital Management and certain of
its affiliates are represented by Alan W. Kornberg, Esq., and
Elizabeth R. McColm, Esq. -- akornberg@paulweiss.com and
emccolm@paulweiss.com -- at Paul Weiss Rifkind Wharton & Garrison
LLP.


GREECE: EU Ministers Call for Speedy Bailout Creditor Talks
----------------------------------------------------------
PressTV reports that European Union finance ministers have
criticized Greece for failing to outline proposals to its bailout
creditors, saying the debt-stricken country's negotiations with
the lenders are taking "too long."

During a meeting in Brussels on Monday, the EU ministers called
on Greece to speed up the process of its negotiations with the
troika of international creditors -- the EU Commission, the
European Central Bank, and the International Monetary Fund -- and
to come up with plans to address its financial woes, PressTV
relates.

According to PressTV, Greece must reach an agreement with its
international lenders to get a next installment of its
EUR240-billion emergency loan package in order to avoid default
in May, when it has to pay back bonds worth about EUR10 billion.

Greece, PressTV says, is experiencing its sixth year of recession
as the government has enforced deep cutbacks and tax hikes at the
order of the troika, leaving an enormous impact on the Greek
economy and society.

The bailouts require the government to impose further cuts to the
civil service, with 11,000 public jobs to disappear this year,
PressTV notes.


LITHOS MORTGAGE: Fitch Affirms 'B-' Ratings on Three Note Classes
-----------------------------------------------------------------
Fitch Ratings has affirmed Lithos Mortgage Financing PLC's notes
at 'B-sf' with Stable Outlook and removed them from Rating Watch
Evolving (RWE), as follows:

  -- Class A (ISIN XS0250309159) 'B-sf'; Outlook Stable, off RWE
  -- Class B (ISIN XS0250310322) 'B-sf'; Outlook Stable, off RWE
  -- Class C (ISIN XS0250310678) 'B-sf'; Outlook Stable, off RWE

Lithos is a true sale securitization of Greek residential
mortgages originated by the former Emporiki Bank, which was
subsequently purchased by and merged into Alpha Bank AE (B-
/Stable/B).

The rating actions follow the issuer's publication of a notice to
noteholders informing them of the full redemption of all
outstanding notes at their principal outstanding amount.

The reserve fund is not provisioning for defaulted loans despite
the transaction documentation explicitly stating that the reserve
fund should be used for this purpose.  Fitch has found that the
reserve is not being correctly applied to 'total available funds'
in accordance with the transaction documentation.  As such, the
transaction's amortization profile has been distorted and the
reserve fund is failing to provide credit support to the notes.

The reserve fund remains fully funded at EUR18 million and so the
transaction has not breached the sequential amortization trigger.
Therefore the transaction is incorrectly amortizing on a pro rata
basis.

Failure to pay the principal amount outstanding together with
accrued interest as stated in the noteholder notice may cause
Fitch to take negative rating action on all tranches.

Any changes to the Greek sovereign Issuer Default Rating or
Country Ceiling may cause the agency to take rating action on the
notes.



=============
I R E L A N D
=============


ALLIED IRISH: Seeks to Reinstate Bank Bonuses for Executives
------------------------------------------------------------
Ciaran Hancock at The Irish Times reports that AIB has raised
with the Government the issue of bank bonuses being reinstated
and the cap on pay for executives being lifted.

It is understood that the matter was raised with officials at the
Department of Finance earlier this month by AIB chairman
David Hodgkinson and Jim O'Hara, who chairs the bank's
remuneration committee, The Irish Times relates.

The Department of Finance confirmed on Tuesday that the matter
had been discussed but declined to comment further, The Irish
Times relays.

According to The Irish Times, a source described the talks as
exploratory and that any move on pay or bonuses would only happen
in the event of the bank returning to profitability.

The Government currently imposes a cap of EUR500,000 on bank
executives and no bonuses are allowed, The Irish Times notes.
In 2012, AIB chief executive David Duffy was paid a salary of
EUR475,000 and a pension payment of EUR71,000 for a total
remuneration of EUR546,000, The Irish Times recounts.

This move on pay was said to be part of a long-term strategy by
AIB to retain and secure key staff, The Irish Times relates.

According to The Irish Times, Fianna Fail TD Sean Fleming said
AIB should be "sent packing" by the Government, given that the
bank was bailed out to the tune of EUR20.8 billion by taxpayers,
continued to be loss-making and had yet to deal meaningfully with
its mortgage arrears customers.

                     About Allied Irish Banks

Allied Irish Banks, p.l.c. -- http://www.aibgroup.com/-- is a
major commercial bank based in Ireland.  It has an extensive
branch network across the country, a head office in Dublin and a
capital markets operation based in the International Financial
Services Centre in Dublin.  AIB also has retail and corporate
businesses in the UK, offices in Europe and a subsidiary company
in the Isle of Man and Jersey (Channel Islands).

Since the onset of the global and Irish financial crisis, AIB's
relationship with the Irish Government has changed significantly.

As at Dec. 31, 2010, the Government, through the National Pension
Reserve Fund Commission ("NPRFC"), held 49.9% of the ordinary
shares of the Company (the share of the voting rights at
shareholders' general meetings), 10,489,899,564 convertible non-
voting ("CNV") shares and 3.5 billion 2009 Preference Shares.  On
April 8, 2011, the NPRFC converted the total outstanding amount
of CNV shares into 10,489,899,564 ordinary shares of AIB, thereby
increasing its holding to 92.8% of the ordinary share capital.

In addition to its shareholders' interests, the Government's
relationship with AIB is reflected through formal and informal
oversight by the Minister and the Department of Finance and the
Central Bank of Ireland, representation on the Board of Directors
(three non-executive directors are Government nominees),
participation in NAMA, and otherwise.

The Company reported a loss of EUR2.29 billion in 2011, a loss of
EUR10.16 billion in 2010, and a loss of EUR2.33 billion in 2009.

Allied Irish's consolidated statement of financial position for
the year ended Dec. 31, 2011, showed EUR136.65 billion in total
assets, EUR122.18 billion in total liabilities and EUR14.46
billion in shareholders' equity.

Allied Irish's balance sheet at June 30, 2012, showed EUR129.85
billion in total assets, EUR116.59 billion in total liabilities
and EUR13.26 billion in total shareholders' equity.


DOONBEG: Kiawah Partners Puts Golf Resort into Receivership
-----------------------------------------------------------
John McDermott of The Post and Courier reports that Kiawah
Partners placed its high-end golf resort, Doonbe, in Ireland into
receivership to restructure the mounting debt on the property and
line up a buyer.

Despite a spectacular seaside setting and an acclaimed golf
course on Ireland's west coast, Doonbeg has never made a profit,
according to The Post and Courier.  The report says that the
resort's total losses exceeded US$70 million through 2011,
according to public filings reported in the Irish press.

The report relates that the firm appointed officials from the
accounting firm EY to run Doonbeg Golf Club and the 39-room Lodge
at Doonbeg until the eventual sale.

"This is more of a restructuring than a bankruptcy," the report
quoted Kiawah Partners spokesman Mike Touhill as saying.  The inn
and course remain open with no changes to the day-to-day
operations, Mr. Touhill said, the report relates.

"We've fully committed the funding to operate the property until
we can seek a buyer, which is what we're going to do," Mr.
Touhill said, the report relays.

The move comes about six months after South Street Partners
bought Kiawah Partners for an estimated US$360 million, including
debt it assumed, the report notes.

Touhill said Kiawah Partners already has heard from some
prospective buyers, the report adds.


MOUNT CARMEL: Unions Meet with Liquidator Following Collapse
------------------------------------------------------------
Pamela Duncan at The Irish Times reports that unions representing
staff at Mount Carmel Hospital in Dublin were due to meet with
the liquidator on Tuesday, Jan. 28, for an update on the winding
down of the hospital.

It comes after Siptu and the Irish Nurses and Midwives
Organisation called on the National Asset Management Agency to
enter negotiations with any potential buyers to maintain the
future of the hospital, The Irish Times relates.

According to The Irish Times, Siptu health division organizer
Paul Bell on Sunday said the union "believes the Government
should intervene to tell Nama to get the best offer for the
hospital" adding that it was in nobody's interest for a "state-of
the-art facility being turned into a derelict site".

He said it was not in the interest of the State to pay
redundancies and potential social welfare payments to over 300
staff, some of who had worked at the hospital for over 30 years,
The Irish Times notes.

The call was echoed by the Irish Nurses and Midwives
Organisation, which represents around 200 nurses and midwives at
the hospital, which is also calling for the Government to
intervene to encourage Nama to find a buyer for the hospital.

However, sources familiar with the process suggested on Sunday
night that, while the possibility still existed for a potential
offer to be made, an exhaustive process to try to identify a
buyer for the hospital had been without success and that it was
now unlikely a credible offer would emerge, The Irish Times
relays.

As reported by the Troubled Company Reporter-Europe on Jan. 27,
2014, Independent.ie related that more than 300 people are to
lose their jobs after the High Court approved the appointment of
provisional liquidators to Mount Carmel Medical (South Dublin
Ltd.).  Mr. Justice Paul Gilligan on Jan. 24 appointed insolvency
practitioners Declan Taite and Anne O'Dwyer as joint provisional
liquidators to Mount Carmel Medical after being informed the
company is insolvent and unable to pay its debts, Independent.ie
disclosed.  The company sought to have the company wound up after
what the court heard was "a disastrous 2013" and when the
National Asset Management Agency decided it was no longer in a
position to provide working capital to the company which allowed
the hospital to trade, Independent.ie recounted.

Mount Carmel Medical (South Dublin Ltd.) operates the Mount
Carmel Hospital in Churchtown, Dublin.



=========
I T A L Y
=========


ICCREA BANCAIMPRESA: Moody's Raises LT Deposit Rating to 'Ba2'
--------------------------------------------------------------
Moody's Investors Service has concluded the review for downgrade
for all ratings of Iccrea BancaImpresa S.p.a's (IBI) initiated on
May 17, 2013. The conclusion of the review resulted in the
following rating actions being taken:

1. Moody's has upgraded IBI's long-term issuer and deposit
ratings by one notch to Ba2 from Ba3 with a stable outlook,
reflecting (i) the greater likelihood of systemic support for the
entire Iccrea Holding S.p.A. Group (Iccrea Group; unrated), than
for IBI on its own, combined with (ii) Moody's broadening of its
analytical perimeter for IBI: from a credit perspective the
agency now sees IBI as an integrated part of Iccrea Group. The
rating continues to incorporate a moderate expectation of support
from the broader cooperative banking sector (Banche di Credito
Cooperativo or BCC network).

2. IBI's standalone rating (its BCA) has been raised to b1 from
caa1 in recognition of the high degree of integration of IBI into
Iccrea Group; Iccrea Group's strengths with regards to liquidity
and capital are therefore now assessed within IBI's standalone
ratings rather than through the form of parental support as was
previously the case; this change in the analytical perimeter of
IBI is based upon new information regarding the degree of
integration of IBI within Iccrea Group.

3. Moody's says the review concluded that there had not been
sufficient deterioration in the financial strength of IBI to
justify a downgrade of its standalone rating.

RATINGS RATIONALE

1. UPGRADE OF THE LONG-TERM ISSUER AND DEPOSIT RATING AND THE
STABLE OUTLOOK

Moody's says that the one-notch upgrade of the long-term deposit
rating to Ba2 from Ba3 reflects its assessment of a moderate
probability of systemic support for Iccrea Group. The one-notch
uplift is in line with peers of a similar size, specifically
reflecting the important role Iccrea Group plays for the more
than 350 cooperative banks, as well as its overall importance for
the Italian banking system.

The outlook on all ratings is now stable. This reflects the
expectation that any further deterioration in IBI's and Iccrea
Group's credit fundamentals is likely to be limited and
adequately reflected in the ratings. This is supported by the
slight improvement of the Italian operating environment, as
Moody's forecasts Italian GDP to grow between 0 and 1% in 2014
(See Note 2), compared to a decline of around 1.8% in 2013.

2. RAISING OF THE STANDALONE BCA

Iccrea Group is the central banking group of the BCC network. It
is composed of a holding company, Iccrea Holding S.p.A (IHG;
unrated), and a number of operating banks, the major ones being
IBI and Iccrea Banca S.p.A (Iccrea Banca; unrated). The Iccrea
Group has total assets of EUR 47.8billion, which would position
it as Italy's 11th largest bank, and it is supervised on a
consolidated basis by the Bank of Italy. It is managed as a
single group, with a highly integrated balance sheet structure
for the individual entities. Based on new information about the
group, unconsolidated financial statements of the different group
entities and other elements, Moody's says that it now considers
the strength of the entire group being available to all entities
within the group. Therefore the agency now assesses the
standalone financial strength of IBI as being aligned with that
of Iccrea Group and it has accordingly decided to reflect the
consolidated financial strength of Iccrea Group in the standalone
rating of IBI. This has resulted in the decision to raise IBI's
standalone rating from caa1 to b1. The only parental support
specifically reflected in the adjusted BCA is the support from
the cooperative network BCC, resulting in a one notch uplift of
the adjusted BCA to ba3.

Previously, the standalone BCA of IBI did not incorporate any
credit strengths derived specifically from the group's higher
capital or liquidity levels; rather, these factors had been
considered together with the unchanged assessment of the BCC
support as external, parental support in the adjusted BCA, which
also remains unchanged at ba3.

3. CONFIRMATION OF IBI'S STANDALONE RATINGS

The agency believes that a standalone BCA of b1 is appropriate
for IBI, reflecting (1) Iccrea Group solid funding and ample
liquidity, supported by its role in the BCC network; (2) modest
capitalization, mitigated by several factors, as explained below;
(3) weak and deteriorating asset quality as well as significant
concentration in Italian government bonds; and (4) low but stable
profitability in the context of its specific business model
within the cooperative banking network.

Solid funding and ample liquidity supported by the bank's role in
the BCC's network

IBI relies primarily on Iccrea Banca for all new funding and
Moody's expects this to continue over the medium term. At the
consolidated level, and given its role to channel European
Central Bank (ECB)-provided funds into the BCC network, Iccrea
Group currently benefits from ample liquidity, as most of its
balance sheet comprises liquid assets, and a matched funding
profile. Moody's anticipates that Iccrea Group should be able to
maintain a sound liquidity position and stable funding from the
BCC network.

Modest capitalization mitigated by several factors

Given that equity is allocated by IHG among the different
subsidiaries taking into account regulatory, tax, accounting and
other operational factors, Moody's considers IBI's capitalization
as modest, but adequate relatively to IBI's role within the
Iccrea Group. The agency believes that the capital within the
group is fungible because Iccrea Group is considered as an unique
entity from a regulatory standpoint. At consolidated level, with
a Core Tier 1 ratio of 9.7% at end-H1203, Iccrea Group's
capitalization is weak compared to its risk profile, albeit
mitigated by some factors related to its asset quality including
(1) limited single name concentration in the banking and customer
loan portfolio; and (2) higher collateralization of IBI's lending
book primarily in the leasing sector, supported by a easier and
quicker recovery process.

Deteriorating asset quality and significant concentration on
Italian government bonds

IBI's loan book accounted for about 88.4% of Iccrea Group's
lending portfolio at end-H12013 (which accounted for 25.1% of the
Group's total assets), and drives the Group's asset quality
metrics. At end-H12013 IBI reported problem loans ( See Note 1)
of 12.8% of gross loans, while the figure for Iccrea Group was
12.5%. Moody's expects further deterioration of IBI's asset
quality, albeit at a slower pace than in previous years.

At consolidated level, the agency identifies two other categories
from which credit risk may arise: (1) loans to BCCs, which
account for 42.2% of Iccrea Group's total assets and are the
technical form through which the Group channels Long Term
Refinancing Operation funds provided by the ECB to the co-
operative banks. However, Moody's does not envisage any
significant problem arising from this category, given the high
overcollateralization and granularity of the portfolio; and (2)
Iccrea Group's securities portfolio (30.7% of total assets) which
is about 9.5x the Group's Tier 1 Capital. Moody's believes that a
key risk for the Group stems from its concentration on government
bonds, which makes it particularly sensitive to sovereign tail-
risk events.

Low but stable profitability

Moody's expects that high loan-loss provisions in future years
will continue to suppress IBI's profitability. Net interest
income coming from the loan portfolio is expected to decline due
to higher funding costs and loan deleveraging. Bottom line
profitability will be primarily driven by how IHG will allocate
the group's investment portfolio among the two main subsidiaries,
IBI and Iccrea Banca. At the consolidated level, Moody's expects
that the persistently low interest-rate environment, increasing
funding costs and the already mentioned high loan impairment
charges will continue to weaken the group's profitability in the
next two years.

WHAT COULD MOVE THE RATINGS UP/DOWN

IBI's standalone BCA could come under upward pressure through a
combination of the following factors:

(1) evidence of a significant and sustainable improvement of
asset quality, as indicated by non-performing loans trending back
towards pre-crisis levels over several quarters; (2) a return to
higher and sustainable profitability on an operational level
beyond the benefit of carry trades over several consecutive
quarters; and (3) a significant strengthening of its solvency
profile, beyond the expected improvement coming from a EUR50
million rights issue in the next two years and internal capital
generation.


The deposit rating could be upgraded if (1) Moody's raises IBI's
BCA; (2) the BCC network shows a stronger commitment to support
Iccrea Group; and/or (3) Moody's assesses that the willingness or
ability of the Italian government (Baa2 negative) to support its
banking system has strengthened.

Further unexpected material deterioration in IBI's asset-quality
metrics or a weakening in Iccrea Group's funding profile would
exert downward pressure on the bank's standalone BCA.

The deposit rating could be lowered if (1) Moody's lowers IBI's
BCA; (2) Moody's assesses a lower degree of support from the BCC
network; and/or (3) Moody's assesses that the Italian
government's willingness or ability to support its banking system
is weakening.

Note 1: Moody's definition of problem loans include non-
performing loans (sofferenze), 30% of watchlist (incagli),
restructured (ristrutturati) and "past due" loans (scaduti)

Note 2: Global Macro Outlook 2013-2015, published in November
2013

Principal Methodologies

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



===================
L U X E M B O U R G
===================


ARDAGH PACKAGING: S&P Affirms 'B' LT Corp. Credit Ratings
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' long-term
corporate credit ratings on Luxembourg-based glass-container and
metal packaging manufacturer Ardagh Packaging Group Ltd. (Ardagh)
and related entities Ardagh Packaging Holdings Ltd. and ARD
Finance S.A.  The outlook on these entities is stable.

At the same time, S&P assigned its issue rating of 'CCC+' to
Ardagh's proposed US$830 million (EUR615 million) senior notes
due 2021, to be issued by Ardagh Packaging Finance and Ardagh
Holdings USA.  The recovery rating on these notes is '6',
indicating S&P's expectation of negligible (0%-10%) recovery
prospects in the event of a payment default.

S&P assigned its issue rating of 'B+' to Ardagh's proposed
US$700 million (EUR519 million) senior secured term loan B tap,
due 2022, to be issued by Ardagh Packaging Finance S.A.
(Luxembourg) and Ardagh Holdings USA Inc.  The recovery rating on
these notes is '2', indicating S&P's expectation of substantial
(70%-90%) recovery in the event of a payment default.

S&P has withdrawn its rating on US$750 million senior secured
notes and US$700 million senior notes as these notes were repaid
on Jan. 13, 2014.

S&P also affirmed its issue ratings on Ardagh's existing senior
secured debt instruments at 'B+', and its issue ratings on the
group's senior debt instruments and subordinated payment-in-kind
(PIK) notes at 'CCC+'.  The recovery ratings on these notes are
'2' and '6', respectively.

S&P affirmed the ratings after Ardagh extended to April 30, 2014,
its purchase agreement with Saint-Gobain to purchase Verallia
North America (VNA), the North American operations of Compagnie
de Saint-Gobain's glass business. Ardagh has also updated the
proposal it sent to the U.S. Federal Trade Commission.  It now
proposes divesting six U.S. glass plants to acquire VNA.

To finance the acquisition, Ardagh issued EUR1.1 billion of
senior secured and senior notes in January 2013; these notes were
repaid in January 2014, when the original purchase agreement for
VNA expired.  Ardagh now proposes to essentially reissue this
bridge financing in U.S. dollars.

The affirmation reflects S&P's view that, after the acquisition
Ardagh's credit metrics will remain within our guidelines for the
rating.  "We do not expect Ardagh's free operating cash flow
generation to make a significant contribution toward reducing
debt in the near term, nor do we expect its Standard & Poor's-
adjusted funds from operations (FFO) to debt to exceed 10%.  On
Sept. 30, 2012, Ardagh's Standard & Poor's-adjusted debt totaled
EUR6 billion," S&P said.

S&P's base case scenario assumes:

   -- GDP growth of 0.9% in the eurozone (European Economic and
      Monetary Union) and 2.8% in the U.S. in 2014.

   -- Flat like-for-like sales growth for 2014 (about 16% on an
      absolute basis, after incorporating the acquisition of VNA
      and the disposal of the six other U.S. plants).

   -- A gradual improvement in margins as the share of Ardagh's
      output comprising high-margin glass-container packaging
      increases and it realizes synergies from acquisitions.

   -- No major acquisitions or divestitures after the completion
      of the VNA acquisition and disposal of six plants.

   -- The unlikelihood of Ardagh paying any cash dividends in the
      near future.

   -- Negative free operating cash flow generation in 2014 on the
      back of high working capital outflow and capital
      expenditure of about EUR400 million.

Based on these assumptions, S&P arrives at the following credit
measures:

   -- FFO to debt of about 6% in 2014; and

   -- Debt to EBITDA of about 7x at the same time.



=====================
N E T H E R L A N D S
=====================


CHEYNE CREDIT: Fitch Affirms 'BBsf' Rating on Cl. V Certificates
----------------------------------------------------------------
Fitch Ratings has upgraded Cheyne Credit Opportunity CDO I B.V.'s
class II and IV as follows:

  -- Class IA F (ISIN US167059AG90): affirmed at 'AAAsf'; Outlook
     Stable

  -- Class IB (ISIN XS0243224911): affirmed at 'AAAsf'; Outlook
     Stable

  -- Class II (ISIN XS0243225215): upgraded to 'AAAsf' from
     'AAsf'; Outlook Stable

  -- Class III (ISIN XS0243225488): upgraded to 'A+sf' from
     'Asf'; Outlook Stable

  -- Class IV (ISIN XS0243225728): affirmed at 'BBBsf'; Outlook
     Stable

  -- Class V (ISIN XS0243226296): affirmed at 'BBsf'; Outlook
     Stable

Cheyen CDO I is a EUR1,000 million cash arbitrage CDO
collateralized by senior secured, senior unsecured, mezzanine,
and second lien leveraged loans as well as high yield
obligations, and managed by Cheyne Capital Management Limited.

Key Rating Drivers

The upgrade reflects improved performance of the underlying
portfolio and the continued deleveraging of the transaction.
Since the end of the reinvestment period in February 2011 the
class IA F note has paid down to 32% of its original outstanding
balance using scheduled principal.  This has enabled the class II
and class III notes to pass higher rating stresses in their
cashflow models.

The portfolio's numerical weighted average rating has improved to
35.27 (B/B-) from 36.39 (B/B-).  This is despite the CCC bucket
increasing to 10.5% of the portfolio from 5.4% a year ago.
Exposure to the euro zone periphery (Spain, Italy and Ireland)
has also increased to 12.2% from 6.2%.  However, the total number
of defaulted assets in the portfolio has fallen to three from
five during this period. There are now EUR26 million defaulted
assets compared with EUR51 million a year ago.

The maturity profile of the assets is favorable with no
long-dated buckets and minimal extension activity over the last
12 months.  Only 3.1% of the portfolio is due to mature in 2014
and the largest maturity bucket, representing assets maturing in
2015, now comprises 18.5% of the transaction, down from 30%.

Cash generated from the pay-downs and sales of assets maturing in
2015 has increased the total cash held by the transaction to
EUR99.8 million from EUR26.8 million.  Fitch expects a large
portion of this cash to be used to pay down the senior note,
increasing the transaction's credit enhancement.

Fitch ran two rating sensitivities for this transaction by
increasing the probability of default by 25% and decreasing
recoveries by 25%.  Under both sensitivities there would be no
impact on the notes except for class IV and V, which would be
downgraded by one notch.


FRESENIUS FINANCE: Moody's Assigns 'Ba1' Rating to EUR200MM Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 rating to EUR200
million of senior unsecured guaranteed notes with a 10 year tenor
to be issued by Fresenius Finance B.V.. Fresenius SE & Co. KGaA's
(FSE) Ba1 Corporate Family Rating (CFR), Ba1-PD Probability of
Default (PDR), Senior Secured (Baa3) and Senior Unsecured (Ba1)
ratings of its subsidiaries remain unchanged. The outlook on the
ratings is negative.

Ratings Rationale

The Ba1 rating (LGD 4, 61%) assigned to EUR200 million of senior
unsecured guaranteed notes reflects the instrument's ranking in
the group's capital structure. The new notes will be guaranteed
on a senior basis by FSE and key intermediary holding companies
(same as available to other unsecured creditors) and will rank
pari passu with all existing and future unsecured obligations of
Fresenius.

The new notes will be used to take out EUR200 million from the
initially EUR1.8 billion bridge financing facility put in place
to finance the acquisition of the Rhoen Klinikum hospitals. It
follows the issuance of EUR750 million senior unsecured
guaranteeed notes on January 23, 2014 and will further de-risk
the financing package put in place at the time of the
announcement of the transaction by extending the overall debt
maturity structure.

Fresenius' Ba1 Corporate Family Rating reflects (1) the group's
sizeable and increasing scale as a global provider of healthcare
services and medical products as well as the recurring nature of
a large part of its revenue and cash flow base; (2) its segmental
diversification within the healthcare market, supported by strong
positions in its four segments; (3) its track record of accessing
both equity and debt markets to support its acquisition growth
and refinancing needs, and of successfully deleveraging following
large acquisition peaks; and (4) the attractive valuation of
FSE's 31% stake in its dialysis subsidiary Fresenius Medical Care
AG & Co. KGaA (FME; Ba1 stable).

The rating is constrained by (i) FSE's leverage (around 3.5x on a
consolidated basis) as of September 2013 and increasing to 4.0x
proforma for the acquisition of 43 hospitals from Rhoen Klinikum,
which positions FSE weakly in the Ba1 rating category; (ii) the
group's exposure to regulatory changes, reimbursement and pricing
pressure from governments and healthcare organizations worldwide;
(iii) moderate structural liquidity profile driven by the need to
continuously refinance its debt, though the newly issued bonds
extend the debt maturity profile further ; and (iv) a track
record of aggressive debt-financed external growth as most
recently highlighted by the Rhoen transaction.

Given the elevated leverage, the current rating assumes that FSE
will reduce its external growth activities going forward, in
order to support deleveraging to levels back to ratios which are
in line with FSE's own targets, as well as within the triggers
set to maintain the current rating.

Assignments:

Issuer: Fresenius Finance B.V.

EUR200 million Senior Unsecured Guaranteed Notes, Assigned Ba1,
LGD4, 61%

Rating Outlook

The negative outlook reflects Moody's expectation that FSE's
credit metrics may remain weaker than the credit metrics expected
for the Ba1 rating for an extended period of time.

What Could Change the Rating -- UP

As current metrics position FSE weakly in its rating category,
prospects for an upgrade are remote. However, Moody's would
consider upgrading the ratings if FSE were to (1) reduce its
leverage on a sustainable basis towards 3.0x; (2) achieve further
improvements in its liquidity and debt maturity profiles, helping
to reduce its reliance on capital market refinancing; and (3)
limit debt-funded acquisition activity.

What Could Change the Rating -- DOWN

The ratings could be subject to downward pressure if FSE's
leverage metrics would not improve to levels to or below
consolidated adjusted debt/EBITDA 4.0x and/or consolidated EBITDA
margins decline below 20%. Large debt-financed acquisitions or
negative free cash flows, materially reducing the prospect of
deleveraging or worsening liquidity profile, could also be
drivers of a downward rating migration.

The principal methodology used in this rating was the Global
Healthcare Service Providers published in December 2011. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Fresenius SE & Co. KGaA ("Fresenius", "the group" or "FSE") is a
global healthcare group providing products and services for
dialysis, the hospital and the medical care of patients at home.
It is a holding company whose major assets are investments in
group companies and inter-company financing arrangements. Around
55-60% of group sales and EBIT are generated by Fresenius Medical
Care AG & Co. KGaA (Ba1 Corporate Family Rating, stable Outlook),
which is fully consolidated into the FSE group, although only 31%
owned, based on managerial control and a particular ownership
legal structure. Fresenius' other operations, which are majority
or fully-owned, are Fresenius Kabi (infusion therapy,
intravenously administered generic drugs and clinical nutrition),
Fresenius Helios (operating private hospitals in Germany) and
Fresenius Vamed (77% owned, hospital and other healthcare
facilities projects and services). Based on the trailing 12
months figures as per 30 September 2013, the group reported
revenues of EUR20.2 billion. Fresenius is owned 27% by Else-
Kr"ner Foundation.

On September 13, 2013, FSE announced that it has agreed to
acquire 43 hospitals and other related assets from Rhoen-Klinikum
AG, in a transaction valued at around EUR3.1 billion. The
transaction is expected to contribute some EUR2.0 billion of
sales and EUR250 million of EBITDA, increasing the FSE's leverage
by around 0.4x proforma for this transaction on a consolidated
basis. On January 27, 2014 FSE announced that they will only
acquire 40 hospitals to comply with the conditions set by the
German antitrust authority for the acquisition of Rhoen-Klinikum
AG.


LEOPARD CLO II: Moody's Affirms 'Ca' Rating on EUR8.25MM Notes
--------------------------------------------------------------
Moody's Investors Service has upgraded the rating of the
following notes issued by Leopard CLO II B.V.:

  EUR22M Class B Senior Secured Deferrable Floating Rate Notes
  due 2019, Upgraded to Baa2 (sf); previously on Nov 14, 2013 Ba1
  (sf) Placed Under Review for Possible Upgrade

Moody's also affirmed the ratings of the following notes issued
by Leopard CLO II B.V.:

  EUR45M (current outstanding balance of EUR 34.2M) Class A-2
  Senior Secured Floating Rate Notes due 2019, Affirmed Aaa (sf);
  previously on Nov 14, 2013 Upgraded to Aaa (sf)

  EUR15M Class C Senior Secured Deferrable Floating Rate Notes
  due 2019, Affirmed Caa2 (sf); previously on Jun 17, 2013
  Downgraded to Caa2 (sf)

  EUR8.25M (current outstanding balance of EUR 10.2M) Class D
  Senior Secured Deferrable Floating Rate Notes due 2019,
  Affirmed Ca (sf); previously on Jun 17, 2013 Downgraded to Ca
  (sf)

Leopard CLO II, issued in April 2004, is a Collateralised Loan
Obligation ("CLO") backed by a portfolio of mostly high yield
senior secured European loans. The portfolio is managed by M&G
Investment Management Limited. The transaction passed its
reinvestment period in April 2009.

Ratings Rationale

The upgrade to the rating on the Class B notes is primarily a
result of the improvement in over-collateralization ratios.
Moody's had previously upgraded the rating on November 14, 2013
of Class A-2 to Aaa (sf) from Aa1 (sf) and placed the rating of
Class B under review for possible upgrade due to significant loan
prepayments. The actions conclude the rating review of the
transaction.

The Class A-1 notes have fully paid down the outstanding balance
of EUR 28.2 million since the rating action in June 2013. In
addition Class A-2 notes have been paid down by approximately EUR
10.8 million (24%) during the same period. As a result of the
deleveraging, over-collateralization has increased. As of the
trustee's December 2013 report, the Class A-2, Class B, Class C
and Class D had over-collateralization ratios of 190.25%,
122.35%, 98.40% and 88.84% compared with 153.13%,117.76%,101.74%
and 94.65%, respectively, as of the trustee's May 2013 report.
Currently Class C and D Par Value Tests are failing and Class D
is differing interest.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base
case, Moody's analyzed the underlying collateral pool as having a
performing par and principal proceeds balance of EUR72.6M,
defaulted par of EUR7.8M, a weighted average default probability
of 25.93% (consistent with a WARF of 4,227), a weighted average
recovery rate upon default of 46.86% for a Aaa liability target
rating, a diversity score of 15 and a weighted average spread of
3.67%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate 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 a recovery of 50% of the 91.03% of the
portfolio exposed to first-lien senior secured corporate assets
upon default and of 15% of the remaining non-first-lien loan
corporate assets upon default. In each case, historical and
market performance and a collateral manager's latitude to trade
collateral are also relevant factors. Moody's incorporates these
default and recovery characteristics of the collateral pool into
its cash flow model analysis, subjecting them to stresses as a
function of the target rating of each CLO liability it is
analyzing.

Methodology Underlying the Rating Action:

The principal methodology used in this rating was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
November 2013.

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 analysis on key parameters for the
rated notes, which includes deteriorating credit quality of
portfolio to address the refinancing risk. Approximately 10.34%
of the portfolio is European corporate rated B3 and below and
maturing between 2014 and 2015, which may create challenges for
issuers to refinance. Moody's considered a model run where the
base case WARF was increased to 4,671 by forcing ratings on 50%
of refinancing exposures to Ca. This run generated model outputs
that were consistent with the base-case results.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
note, in light of 1) uncertainty about credit conditions in the
general economy 2) the large concentration of lowly- rated debt
maturing between 2014 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 behavior and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties due to because of embedded ambiguities.

Additional uncertainty about performance is due to the following:

Portfolio amortization: The main source of uncertainty in this
transaction is the pace of amortization of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortization could accelerate as a consequence of high loan
prepayment levels or collateral sales by the collateral manager
or be delayed by an increase in loan amend-and-extend
restructurings. Fast amortization would usually benefit the
ratings of the notes beginning with the notes having the highest
prepayment priority.

Around 69% of the collateral pool consists of debt obligations
whose credit quality Moody's has assessed by using credit
estimates. As part of its base case, Moody's has stressed large
concentrations of single obligors bearing a credit estimate as
described in "Updated Approach to the Usage of Credit Estimates
in Rated Transactions.

Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assumes have
defaulted can result in volatility in the deal's over-
collateralization levels. Further, the timing of recoveries and
the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Moody's
analyzed defaulted recoveries assuming the lower of the market
price or the recovery rate to account for potential volatility in
market prices. Recoveries higher than Moody's expectations would
have a positive impact on the notes' ratings.

Long-dated assets: The presence of assets that mature beyond the
CLO's legal maturity date exposes the deal to liquidation risk on
those assets. Moody's assumes that, at transaction maturity, the
liquidation value of such an asset will depend on the nature of
the asset as well as the extent to which the asset's maturity
lags that of the liabilities. Liquidation values higher than
Moody's expectations would have a positive impact on the notes'
ratings.

In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
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, can influence the final rating decision.


ORYX EUROPEAN: S&P Raises Rating on Class D Notes From 'BB+'
------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
ORYX European CLO B.V.'s class A, B, C, and D notes.

The rating actions follow S&P's assessment of the transaction's
performance using data from the Nov. 12, 2013 trustee report and
the application of S&P's relevant criteria.

S&P conducted its cash flow analysis to determine the break-even
default rate (BDR) for each class of notes at each rating level.
In S&P's analysis, it used the reported portfolio balance that it
considers to be performing (EUR183,490,188), the current
weighted-average spread (3.76%), and the weighted-average
recovery rates that S&P considered to be appropriate.  S&P
incorporated various cash flow stress scenarios using alternative
default patterns and levels, in conjunction with different
interest and currency stress scenarios.

Since S&P's Feb. 3, 2012 review, the class A notes have amortized
further.  The notional balance is now approximately 20% of its
initial amount.  As a result, the available credit enhancement
for all rated classes of notes has increased.  The portfolio's
weighted-average spread has also increased.  These factors have
led to increasing BDRs for all classes of notes.  The portfolio's
concentration has increased, and as a result, S&P has observed a
small increase in the scenario default rates at each rating
level.

Approximately 16% of assets in the transaction's portfolio are
non-euro-denominated.  To mitigate the risk of foreign exchange-
related losses, the issuer entered into a cross-currency swap
agreement with UBS Ltd. (A/Stable/A-1).  Under S&P's current
counterparty criteria, its analysis of the derivative
counterparty and its associated documentation indicates that it
cannot support ratings on the notes that are higher than 'A+
(sf)' -- S&P's long-term issuer credit rating on the counterparty
plus one notch.

S&P assumed that the transaction does not benefit from a cross-
currency swap to assess its potential effect on its ratings above
'A+'.  According to S&P's analysis in this stressed scenario, the
class A and B notes can achieve higher ratings than currently
assigned.  S&P has therefore raised to 'AAA (sf)' from 'AA (sf)'
its rating on the class A notes and raised to 'AA+ (sf)' from 'A+
(sf)' its rating on the class B notes.

The results of S&P's credit and cash flow analysis indicate that
the available credit enhancement for the class C and D notes is
now commensurate with higher ratings.  S&P has therefore raised
to 'A+ (sf)' from 'BBB+ (sf)' its rating on the class C notes and
raised to 'BBB+ (sf)' from 'BB+ (sf)' its rating on the class D
notes.

ORYX European CLO is a cash flow collateralized loan obligation
(CLO) transaction, backed primarily by leveraged loans granted to
speculative-grade corporate firms.  The transaction closed in
October 2005 and reached the end of its reinvestment period in
November 2011.  The transaction's manager is AXA Investment
Managers Paris S.A.

RATINGS LIST

Class              Rating
            To               From

ORYX European CLO B.V.
EUR410 Million Senior And Subordinated Deferrable Floating-Rate
Notes

Ratings Raised

A           AAA (sf)         AA (sf)
B           AA+ (sf)         A+ (sf)
C           A+ (sf)          BBB+ (sf)
D           BBB+ (sf)        BB+ (sf)


ZIGGO BOND: S&P Puts 'BB' Corp. Credit Rating on CreditWatch Neg.
-----------------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch with
negative implications its 'BB' long-term corporate credit rating
on Netherlands-based Ziggo Bond Co B.V. and its 'BBB-' and 'BB-'
issue ratings on Ziggo's senior secured and senior debt.

At the same time, S&P assigned Ziggo's proposed new senior
secured term loan its 'BB-' issue rating and a recovery rating of
'3', indicating its expectation of meaningful (50%-70%) recovery
prospects in the event of a payment default.

In addition, S&P assigned Ziggo's proposed exchanged senior notes
its 'B' issue rating and a recovery rating of '6', indicating its
expectation of negligible (0%-10%) recovery prospects in the
event of a default.

The negative CreditWatch placement follows the announcement on
Jan. 27, 2014, of U.S.-listed international cable TV and
broadband services provider Liberty Global PLC (LGP) that it has
made an approximate EUR5 billion cash and share bid for the 71.5%
of Ziggo share that LGP does not yet own.

"The CreditWatch placement reflects our view that the transaction
will result in Ziggo maintaining higher debt leverage," said
Standard & Poor's credit analyst Franck Rizzoli.  "We anticipate
that LGP will implement a more aggressive financial policy at
Ziggo; notably, the use of Ziggo's healthy cash flow generation
for substantial shareholder returns."

Standard & Poor's aims to resolve the CreditWatch on Ziggo upon
completion of the transaction, which S&P understands could occur
in the second half of 2014.  Therefore, S&P anticipates that the
CreditWatch will likely extend beyond its usual three-month
horizon.


ZIGGO NV: Moody's Places 'Ba1' CFR Under Review for Downgrade
-------------------------------------------------------------
Moody's Investors Service placed all ratings of Ziggo N.V. and
its rated subsidiaries under review for downgrade. This follows
the announcement that Ziggo and Liberty Global plc ('Liberty
Global'; CFR at Ba3) have reached a conditional agreement
pursuant to which Liberty Global, through a wholly-owned
subsidiary, will acquire full ownership of the company, in which
it currently owns an equity stake of 28.5%.

The following ratings are placed under review :

the Ba1 CFR and Ba1-PD PDR at Ziggo N.V

the Baa3 ratings of the senior secured notes at Ziggo Finance B.V
(due 2017) and at Ziggo B.V. (due 2020)

the Ba2 rating of the senior notes at Ziggo Bond Company B.V.
(due 2018)

Liberty's offer for Ziggo, which consists of 0.2282 Liberty
Global Class A shares, 0.5630 Liberty Global Class C shares
(adjusted for dividend) and EUR11.0 in cash has been recommended
by Ziggo's management and supervisory boards, but is subject to
shareholder acceptance and regulatory approval. The transaction
values Ziggo at an enterprise value of around EUR10.0 billion.
The cash element of the purchase price, which equates to around
EUR1.6 billion will largely be funded from debt to be raised at
Ziggo. This will bring Ziggo's leverage broadly in line with
Liberty Global's corporate target of managing debt so that a
ratio of Debt/EBITDA (Liberty Global definition) of between 4.0
and 5.0 is maintained. In addition, Ziggo and Liberty Global
expect to incur approximately EUR300 million in transaction and
financing costs, including costs associated with refinancing,
tendering and/or exchanging Ziggo debt, which will be funded from
available cash resources at Ziggo and Liberty Global as well as
from the incremental debt to be raised at Ziggo.

Moody's aims to conclude its review upon completion of the
transaction at the latest, which is expected for the second half
of 2014 following shareholder approvals (under certain
circumstances) and regulatory reviews. Moody's currently
anticipates that the review will result in a downgrade of Ziggo's
Ba1 CFR by three notches to B1, reflecting amongst other things
the increased indebtedness and weaker credit metrics expected for
the company at transaction closing. This is subject to the
transaction closing as currently anticipated and refers to Ziggo
as a stand-alone legal entity. Moody's notes that Ziggo has
announced an exchange offer for up to EUR934 million outstanding
under its EUR1.2 billion senior notes due 2018, a tender offer
and consent solicitation for its EUR750 million senior secured
notes due 2020 and its EUR750 million senior secured notes due
2017 have been called.

To the extent that any senior secured debt remains outstanding,
and assuming a three-notch downgrade of the CFR, Moody's
currently anticipates that the ratings are likely to be
downgraded by three notches to Ba3 (from Baa3), while the rating
for the unsecured debt is likely to be downgraded to B3 (from
Ba2). This is based on our current expectation that Ziggo's post-
transaction capital structure will include around EUR3.7 billion
of senior secured debt (excluding capital leases) and
approximately EUR0.9 billion of senior unsecured debt. The rating
of the senior secured debt in particular remains sensitive to the
exact composition of the company's capital structure at closing.
Moody's has also assumed that in case shareholder loans are
introduced to Ziggo's capital structure, they will meet Moody's
criteria for equity-equivalent treatment.



===========
P O L A N D
===========


P4 SP ZOO: Fitch Assigns 'B+' Long-Term IDR; Outlook Positive
-------------------------------------------------------------
Fitch Ratings has assigned Poland-based P4 Sp. z.o.o. (P4 or
Play) a Long-term Issuer Default Rating (IDR) of 'B+' and
National Long-Term Rating of 'BBB-(pol)' with Positive Outlooks.

Fitch has also assigned final ratings of 'BB-'/'RR3'/'BBB(pol) to
the senior secured notes issued by Play Finance 2 S.A. and 'B-
'/'RR6' to the senior notes issued by Play Finance 1 S.A.

Fitch notes subscription of the notes resulted in an increase in
the overall size of the company's financing activity with
approximately EUR900 million of proceeds raised.  The shareholder
dividend/distribution is now expected to be around PLN1.43
billion compared with Fitch's previous expectations of PLN1.3
billion. The increase is not considered material to the ratings.

P4 has proven a nimble and fast-growing challenger in the Polish
mobile market, establishing itself as a strong brand, with an
easily understood service message and competitive distribution
network.  Revenues and cash flows demonstrate strong growth, with
the company exhibiting improving margins, albeit below market and
positive (pre-distribution) free cash flow.

The rating is constrained by some uncertainty over future
financial policy, the pace of growth, market position among
competitors, and the currency mismatch of the proposed debt
structure.

The Positive Outlook reflects Fitch's opinion that delivery of
management's planned 2014 budget would result in robust financial
metrics for a 'B+' rating.  The evolution of the capital
structure following the transaction (i.e. how closely the
shareholders choose to manage leverage to covenant), continued
rational development of the market and evidence that roaming
agreements are largely insulated from material price inflation or
renegotiation risk, could support a higher rating.

Rational Market, Low Convergence Risk

Fitch views competition in the Polish mobile market as developed
and well dimensioned with no single operator owning a
disproportionate share of the market, while as the market
challenger, Play has taken a measured approach to market share
gains, product position and pricing.  The agency considers that a
population of 38 million in a reasonably advanced economy can
support a four player market and that the market structure is
less likely to experience the kind of value-destructive price
wars seen in some markets.  The somewhat underdeveloped fixed
telephony infrastructure and limited pervasion of traditional
triple-play services, suggest an aggressive move to convergent
fixed-mobile bundles is currently a limited medium-term risk.

Efficient Infrastructure Strategy

Play has developed an efficient approach to network coverage
concentrating its own network infrastructure in more populous and
urban areas, relying to a limited extent on roaming agreements,
which currently exist with each of the other three main network
operators.  Data traffic is almost entirely carried on the
company's own network, while spectrum and planned LTE (next
generation data technology) investment appear adequately
provisioned relative to the competition.  This hybrid asset-light
approach allows for a lower level of capital intensity, in turn
supporting an improving cash flow.  While roaming agreements are
entirely commercially negotiated, Fitch does not perceive a high
degree of renegotiation risk given the current existence of
multiple agreements.

Effective Commercial Approach

Play appears to have developed a consistent and well-communicated
brand, seeking to be the mobile number porting destination of
choice and has acquired customers on a relatively evenly balanced
basis across the market (ie. without targeting any one particular
competitor). Management appear conscious of the need not to be
seen as a disruptive challenger, which could provoke a
destructive price war. Distribution channels (ie. the number of
retail shops/distributors) among competitors appear evenly
matched, which is important, given the absence of an independent
distribution chain (ie. a Carphone Warehouse equivalent).
Although virtual mobile network operators have been present in
the market for a number of years, they have not proven overly
disruptive.

Mature Competitive Market

As the smallest in a four player market in an emerging economy,
Play has proven a nimble competitor and has grown quickly and
consistently.  The pace of growth will continue to require
careful management while the presence of two large incumbent-
owned multinational competitors -- Orange (BBB+/Negative) and T-
Mobile (Deutsche Telecom; BBB+/Stable) -- provides financially
strong and experienced competitors with the capacity to intensify
the operating environment if they choose.

Financial Policy Evolving

Financial policies that allow leverage to remain somewhat high
(incurrence tests of 4.25x net leverage; 3.0x net secured
leverage and a restricted payment test limited at 3.75x net debt
to EBITDA) and the currency mismatch of a predominantly euro-
denominated debt structure and 100% domestic revenue base, are
constraining factors for the rating.

Any positive action would be subject to the continued rational
behavior of the market and that market share gains and other
performance indicators are in line with Fitch's rating case.  The
shareholders' approach to financial policy will also be
important.  With a potential IPO deemed a number of years off and
the bonds incorporating a restricted payment test (set at 3.75x)
Fitch expects recurring dividends to consistently re-leverage the
balance sheet.  The level at which the shareholders choose to
establish this, combined with continued operational performance
will determine whether the financial profile supports a 'BB-'
rating.

The following metrics would be important for an upgrade to be
considered:

  -- Continued strong subscriber growth and an ongoing shift in
     the subscriber mix to postpaid customers, with subscriber
     acquisition cost and postpaid churn close to management's
     expectations.

  -- EBITDA margin in the high 20s and EBITDA less capex margin
     in the high teens.

  -- A financial policy that is likely to see FFO net adjusted
     leverage managed at or below 4.0x, a level consistent with
     net debt/EBITDA of around 3.3x-3.4x.

A stabilization of the rating at 'B+' is likely if the
competitive (pricing) environment intensifies, making revenue
growth and margin expansion targets more challenging.  An
expectation that convergent services were deemed by the market to
be a more important offering could also undermine the Positive
Outlook.

A financial policy that included FFO net adjusted leverage
consistently managed above 4.0x would be expected to stabilize
the rating at 'B+'.  In the absence of greater clarity on
publicly stated financial policy from management/the owners,
Fitch would not expect any positive rating action until a second
dividend has been declared.

Full List of Rating Actions

  -- P4 Sp. z.o.o. Long-Term IDR: assigned 'B+'; Outlook Positive

  -- P4 Sp. z.o.o. National Long-Term Rating: assigned 'BBB-
     (pol)'; Outlook Positive

  -- Play Finance 2 S.A. Senior Secured Notes: assigned
     'BB-'/'RR3'

  -- Play Finance 2 S.A. Senior Secured Notes National Long-Term
     Rating: assigned 'BBB(pol)'

  -- Play Finance 1 S.A. Senior Notes: assigned 'B-'/'RR6'



===============
P O R T U G A L
===============


ENERGIAS DE PORTUGAL: S&P Affirms 'BB+/B' CCRs; Outlook Stable
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+/B' long- and
short-term corporate credit ratings on Portuguese utility EDP -
Energias de Portugal S.A. (EDP) and its finance vehicle EDP
Finance B.V.

At the same time, S&P removed the long-term ratings from
CreditWatch where it placed them with negative implications on
Sept. 20, 2013.  The outlook is stable.

The affirmation and removal from CreditWatch follow S&P's similar
action on Portugal.  S&P's rating on EDP is no longer constrained
by the CreditWatch on Portugal.  S&P's outlook on EDP now
reflects its expectation that the utility's business risk and
financial risk profiles will remain resilient to persistently
difficult and uncertain market, economic, and regulatory
conditions in its Portuguese and Spanish core markets.

The negative outlook on Portugal does not constrain the rating on
EDP since, under S&P's criteria, a non-sovereign entity with
"high" country risk sensitivity can be rated two notches above
the weighted average of the sovereign ratings on countries where
the entity has material exposures, assuming it passes S&P's
stress tests.  S&P views EDP has having high exposure to Portugal
(BB/Negative/B) and Spain (BBB-/Stable/A-3), where it originated
respectively 43% and 26% of its EBITDA in the first nine months
of 2013.  S&P's stress-testing of EDP's rating concluded that
there is a measureable likelihood that the issuer would withstand
a sovereign default in Spain and Portugal.

The stable outlook reflects S&P's expectation that EDP's business
risk and financial risk profiles will remain resilient to
persistently difficult and uncertain market, economic, and
regulatory conditions in its Portuguese and Spanish core markets.
S&P anticipates that EDP's debt will continue gradually
decreasing and its credit metrics will continue gradually
strengthening in the next two years, thanks to additional asset
sales, tariff deficit securitizations, and capex cuts.  However,
S&P believes that EDP's credit metrics have little headroom at
the current rating level to absorb any additional unexpected
market disruption, or any regulatory or fiscal impacts.

A downgrade of Portugal of up to two notches would leave the
rating on EDP unchanged, all else remaining equal.

S&P could upgrade EDP if its financial risk profile strengthened
sustainably and significantly more than it currently assumes.
S&P sees adjusted FFO to debt significantly and recurrently in
excess of 16% as commensurate with a higher rating, assuming no
unexpected material weakening of the regulatory, fiscal, or
economic environment in EDP's core markets.

S&P would likely lower the rating if it considered that EDP could
struggle to achieve Standard & Poor's-adjusted FFO to debt of
about 12%, a credit metric consistent with an "aggressive"
financial risk profile.  This could occur if CTG delayed the
fulfillment of its remaining commitments or if regulatory
receivables on EDP's balance sheet did not start falling.  Any
new and unexpected regulatory and fiscal impacts hurting EDP's
cash flow generation could also put the rating under pressure.
Any prolonged financial market turbulence preventing EDP's
securitization or bond issue could also prompt a downgrade.


PORTUGAL: Mulls "Clean" International Bailout Exit
--------------------------------------------------
Peter Wise at The Financial Times reports that Portugal is
jostling to be next in line to perform the periphery escape
trick.

According to the FT, Lisbon officials have begun openly to
entertain the possibility of emulating Ireland's "clean exit"
from its three-year rescue program.

The fact that Portugal can even consider emerging from its
EUR78 billion international bailout without the safety net of an
EU credit line is testimony to how debt market sentiment has
changed in favor of the eurozone's crisis-hit periphery, the FT
notes.

Only a couple of months ago, many investors and senior Brussels
policy makers were convinced the country would need a second full
bailout when its current three-year adjustment program ended in
June, the FT relays.

But the combination of growing investor confidence that the
eurozone crisis is over and a stronger than expected turnaround
for the Portuguese economy has made the still comparatively high
yields offered by its government bonds attractive to investors,
the FT discloses.

According to the FT, increasing investor appetite for Portuguese
debt enabled Lisbon to swap EUR6.6 billion of government bonds
for debt with longer maturities in December and to issue EUR3.25
billion in five-year debt this month.

More than half this year's EUR7 billion funding requirements are
covered, paving the way for Lisbon to tap positive market
sentiment to build a significant cash cushion for a post-bailout
era that is less than six months away, the FT states.



=============
R O M A N I A
=============


CARPATAIR SA: Gets OK to Restructure Under Bankruptcy Protection
----------------------------------------------------------------
Kurt Hofmann at ATWOnline reports that Romanian regional carrier
Carpatair has been given the legal go-ahead to restructure under
bankruptcy protection.

ATWOnline relates that the company blamed EUR30 million (US$41
million) in legal damages it has been charged as a key reason for
filing for insolvency.  According to the report, the legal
disputes arose out of anticompetitive practice accusations
leveled at Timisoara Airport, Carpatair's home base, that are
being investigated by the European Commission, local courts and
authorities.

During the restructuring process, the company will be run by the
current management team led by Nicolae Petrov, under the
supervision of an appointed insolvency administrator, the report
says.

Operations will continue, although the winter season schedule
will be restricted to profitable flights only, ATWOnline relays.

Carpatair was founded in 1999, by a group of Swiss businessmen
who are the main shareholders.  The carrier operates one Boeing
737-300, two Fokker 100s and one Fokker 100 for subsidiary
Moldavian Airlines, based in Chisinau.



===========
R U S S I A
===========


EUROPEAN TRUST: Moody's Cuts Currency Deposit Ratings to 'Caa3'
---------------------------------------------------------------
Moody's Investors Service has downgraded the long-term global
local- and foreign-currency deposit ratings of European Trust
Bank (Russia) to Caa3 from Caa1. These ratings remain on review
for downgrade. Concurrently, Moody's has affirmed European Trust
Bank's E standalone bank financial strength rating (BFSR)
(equivalent to Baseline Credit Assessment (BCA) of caa3) and its
Not Prime short-term global local and foreign currency deposit
ratings. The standalone BFSR and short-term deposit ratings are
not subject to the review. The standalone E BFSR maintains a
stable outlook since it is already at the lowest possible level.

Moody's rating action -- which follows the review for downgrade
on the long-term deposit ratings initiated on December 9, 2013 --
is primarily based on European Trust Bank's audited financial
statements for 2012 prepared under IFRS, as well as the bank's
unaudited financial statements for 2013 prepared in accordance
with the local GAAP.

Ratings Rationale

The rating action reflects European Trust Bank's poor liquidity
profile, whereby the bank's liquid assets shrunk to 3% of total
assets as of January 15, 2014, down from the already low 10% at
year-end 2013 (Moody's estimate based on the bank's reports
prepared under local GAAP). The deterioration of the bank's
liquidity profile is caused by outflow of funds faced by the bank
from November 1, 2013 to January 15, 2014. During this period,
interbank funding, which had historically served as a sizeable
component of European Trust Bank's funding base (13% of total
liabilities at November 1, 2013), shrunk by almost 60%, and
retail deposits also dropped 23%.

Moody's notes that although corporate deposits displayed some
volatility, they proved to be relatively stable over a stressful
November-December 2013. Moreover, the volume of these deposits
even increased (by 16% or RUB1.4 billion) in the first half of
January 2014. However, the rating agency is of the opinion that
these newly attracted deposits are derived from the bank's
related parties and that their stability is questionable because
these deposits predominantly carry a contractual maturity of up
to 30 days. Moody's further observes that the placement of these
deposits did not help to bolster European Trust Bank's liquidity
cushion, as reflected in the liquidity shortage now being faced
by the bank. The rating agency notes that this continuing and
further aggravating liquidity shortage may result in significant
disruptions and delays for European Trust Bank's settlement
transactions, and, ultimately, generate losses for the bank's
creditors.

Moody's also notes risks associated with European Trust Bank's
capital position, which has, over a prolonged period, been
pressurized by substantial investments in non-core assets. The
rating agency estimates that the bank's investments in low-liquid
equity instruments and real estate exceed its total equity.
European Trust Bank's regulatory capital adequacy (N1) ratio
slightly improved to 11.7% at January 1, 2014 from 11.2% reported
at 1 November 2013. This improvement was due to a decline in
risk-weighted assets as a result of shrinkage of the loan
portfolio: the volume of European Trust Bank's gross loans
dropped 44% during the period November 1, 2013 to January 15,
2014 as the bank sold well-performing loans in an effort to
replenish its liquidity cushion. However, the current capital
adequacy ratio does not provide sufficient comfort, as the bank
may face material losses on disposals, below book value, of its
non-core investments. Furthermore, European Trust Bank's
recurring income generation is historically poor, with net
interest income and fees and commissions together being
insufficient to cover the bank's administrative expense.

Focus of the Review

Over the next several months, Moody's will monitor European Trust
Bank's liquidity profile. The rating agency will also assess the
progress of European Trust Bank's planned capital enhancement.

What Could Move the Ratings DOWN/UP

European Trust Bank's Caa3 deposit ratings are already at a very
low level, but they could be downgraded further in the event of
further deterioration of the bank's financial fundamentals, in
particular liquidity and capital adequacy.

Any upward potential of European Trust Bank's Caa3 deposit
ratings is currently very limited given that the ratings are on
review for downgrade. However, Moody's may confirm European Trust
Bank's Caa3 deposit ratings if the bank's liquidity profile
improves and the share of liquid assets on its balance sheet
materially increases. A capital injection to the bank is another
necessary prerequisite for the confirmation of the bank's deposit
ratings. The standalone E BFSR (which is not subject to the
current review, and maintains a stable outlook) also has limited
upside potential given the review of the deposit ratings.

Principal Methodology

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

Headquartered in Moscow, Russia, European Trust Bank reported --
according to unaudited financial statements prepared under local
GAAP -- total assets of US$520 million and total equity of US$47
million as at year-end 2013. The bank's net income for 2013 stood
at around US$4,050.


EUROPEAN TRUST: Moody's Cuts National Scale Rating to 'Caa3.ru'
---------------------------------------------------------------
Moody's Interfax Rating Agency has downgraded the national scale
rating (NSR) of European Trust Bank (Russia) to Caa3.ru from
Ba3.ru. The NSR remains on review for downgrade.

Moody's Interfax's rating action -- which follows the review for
downgrade on the NSR initiated on December 9, 2013 -- is
primarily based on European Trust Bank's audited financial
statements for 2012 prepared under IFRS, as well as the bank's
unaudited financial statements for 2013 prepared in accordance
with the local GAAP.

Ratings Rationale

The rating action reflects European Trust Bank's poor liquidity
profile, whereby the bank's liquid assets shrunk to 3% of total
assets as of January 15, 2014, down from the already low 10% at
year-end 2013 (Moody's Interfax's estimate based on the bank's
reports prepared under local GAAP). The deterioration of the
bank's liquidity profile is caused by outflow of funds faced by
the bank from November 1, 2013 to January 15, 2014. During this
period, interbank funding, which had historically served as a
sizeable component of European Trust Bank's funding base (13% of
total liabilities at November 1, 2013), shrunk by almost 60%, and
retail deposits also dropped 23%.

Moody's Interfax notes that although corporate deposits displayed
some volatility, they proved to be relatively stable over a
stressful November-December 2013. Moreover, the volume of these
deposits even increased (by 16% or RUB1.4 billion) in the first
half of January 2014. However, the rating agency is of the
opinion that these newly attracted deposits are derived from the
bank's related parties and that their stability is questionable
because these deposits predominantly carry a contractual maturity
of up to 30 days. Moody's Interfax further observes that the
placement of these deposits did not help to bolster European
Trust Bank's liquidity cushion, as reflected in the liquidity
shortage now being faced by the bank. The rating agency notes
that this continuing and further aggravating liquidity shortage
may result in significant disruptions and delays for European
Trust Bank's settlement transactions, and, ultimately, generate
losses for the bank's creditors.

Moody's Interfax also notes risks associated with European Trust
Bank's capital position, which has, over a prolonged period, been
pressurized by substantial investments in non-core assets. The
rating agency estimates that the bank's investments in low-liquid
equity instruments and real estate exceed its total equity.
European Trust Bank's regulatory capital adequacy (N1) ratio
slightly improved to 11.7% at January 1, 2014 from 11.2% reported
at 1 November 2013. This improvement was due to a decline in
risk-weighted assets as a result of shrinkage of the loan
portfolio: the volume of European Trust Bank's gross loans
dropped 44% during the period November 1, 2013 to January 15,
2014 as the bank sold well-performing loans in an effort to
replenish its liquidity cushion. However, the current capital
adequacy ratio does not provide sufficient comfort, as the bank
may face material losses on disposals, below book value, of its
non-core investments. Furthermore, European Trust Bank's
recurring income generation is historically poor, with net
interest income and fees and commissions together being
insufficient to cover the bank's administrative expense.

Focus of the Review

Over the next several months, Moody's Interfax will monitor
European Trust Bank's liquidity profile. The rating agency will
also assess the progress of European Trust Bank's planned capital
enhancement.

What Could Move the Ratings DOWN/UP

European Trust Bank's Caa3.ru NSR is already at a very low level,
but it could be downgraded further in the event of further
deterioration of the bank's financial fundamentals, in particular
liquidity and capital adequacy.

Any upward potential of European Trust Bank's Caa3.ru NSR is
currently very limited given that the rating is on review for
downgrade. However, Moody's Interfax may confirm the Caa3.ru NSR
if the bank's liquidity profile improves and the share of liquid
assets on its balance sheet materially increases. A capital
injection to the bank is another necessary prerequisite for the
confirmation of the bank's NSR.

Principal Methodology

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

Headquartered in Moscow, Russia, European Trust Bank reported --
according to unaudited financial statements prepared under local
GAAP -- total assets of US$520 million and total equity of US$47
million as at year-end 2013. The bank's net income for 2013 stood
at around US$4,050.

Moody's Interfax Rating Agency's National Scale Ratings (NSRs)
are intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market participants
to better differentiate relative risks. NSRs differ from Moody's
global scale ratings in that they are not globally comparable
with the full universe of Moody's rated entities, but only with
NSRs for other rated debt issues and issuers within the same
country. NSRs are designated by a ".nn" country modifier
signifying the relevant country, as in ".ru" for Russia. For
further information on Moody's approach to national scale
ratings, please refer to Moody's Rating Methodology published in
October 2012 entitled "Mapping Moody's National Scale Ratings to
Global Scale Ratings.

              About Moody's and Moody's Interfax

Moody's Interfax Rating Agency (MIRA) specializes in credit risk
analysis in Russia. MIRA is a joint-venture between Moody's
Investors Service, a leading provider of credit ratings, research
and analysis covering debt instruments and securities in the
global capital markets, and the Interfax Information Services
Group. Moody's Investors Service is a subsidiary of Moody's
Corporation (NYSE: MCO).



=========
S P A I N
=========


IM PASTOR 4: S&P Lowers Rating on Class D Notes to 'D(sf)'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' from
'CCC- (sf)' its credit rating on IM PASTOR 4, Fondo de
Titulizacion de Activos' class D notes.

The rating action follows the class D notes' interest payment
default on the Dec. 23, 2014 interest payment date (IPD).

As S&P noted in its March 22, 2013 review, its rating on the
class D notes reflect the proximity of the notes to their
interest deferral trigger, the undercollateralization of the
junior tranches, and the fact that the reserve fund was fully
depleted since December 2009.

The trustee's data report for the December 2013 IPD shows that
the transactions' principal deficiency is greater than 475% of
the class D notes' outstanding balance, which is the documented
interest deferral trigger for the class D notes.

The class D notes defaulted on their interest payment on the
December 2013 IPD.  This followed the breach of the interest
deferral trigger and a lack of available liquid funds.  As S&P's
ratings in this transaction address the timely payment of
interest and ultimate payment of principal, S&P has lowered to 'D
(sf)' from 'CCC- (sf)' its rating on the class D notes.  The
other classes of notes in this transaction are unaffected by the
rating action.

Defaults in the transaction have occurred mainly in the Barcelona
province.  Of the defaulted balance, 25.56% is in this region.

IM PASTOR 4 is a 2006-vintage securitization of residential
mortgage loans granted to individuals to purchase a property in
Spain.  The loans were originated by Banco PASTOR S.A., which has
now merged with Banco Popular Espanol S.A.



=============
U K R A I N E
=============


PRAVEX-BANK: Fitch Puts 'B-' IDR on Rating Watch Negative
---------------------------------------------------------
Fitch Ratings has placed Ukraine's PRAVEX-BANK PJSCCB's ratings,
including its 'B-' foreign currency Long-term Issuer Default
Rating (IDR), on Rating Watch Negative (RWN).

The rating action follows the recent announcement that Pravex's
current 100% shareholder, Intesa Sanpaolo S.p.A. (Intesa)
(BBB+/Negative), will sell its stake in the bank to CentraGas
Holding, a company controlled by Ukrainian shareholders.  The RWN
reflects uncertainty over extraordinary support, if needed, from
the new shareholder.

Fitch has been informed that the sale is likely to be completed
in the next three to six months subject to receiving necessary
regulatory approvals.

Fitch expects to resolve the RWN and downgrade Pravex's Long-term
IDRs in the next three to six months, after the completion of the
transaction.

Fitch believes that Intesa will provide necessary support up
until the completion of the bank's sale.

However, if funding outflows accelerate in the near term and are
not offset by liquidity support by either the new or the current
shareholder, the ratings could come under downward pressure prior
to the completion of the sale.

The rating actions are as follows:

  -- Long-term foreign currency IDR: 'B-'; placed on Rating Watch
     Negative

  -- Long-term local currency IDR: 'B'; placed on Rating Watch
     Negative

  -- Short-term foreign currency IDR: 'B'; placed on Rating Watch
     Negative

  -- Support Rating: affirmed at '5'

  -- Viability Rating: 'ccc' unaffected

  -- National Long-term Rating: 'AAA (ukr)'; placed on Rating
     Watch Negative


UKRAINE: S&P Lowers Sovereign Credit Ratings to 'CCC+'/C'
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its long- and short-
term foreign currency sovereign credit ratings on Ukraine to
'CCC+/C'.

At the same time, S&P affirmed the long- and short-term local
currency sovereign credit ratings at 'B-/B'.

The outlook is negative.

S&P also lowered the long-term Ukraine national scale rating to
'uaBB+' from 'uaBBB-'.

As a "sovereign rating" (as defined in EU CRA Regulation
1060/2009 [EU CRA Regulation]), the ratings on Ukraine are
subject to certain publication restrictions set out in Art 8a of
the EU CRA Regulation, including publication in accordance with a
pre-established calendar.  Under the EU CRA Regulation,
deviations from the announced calendar are allowed only in
limited circumstances and must be accompanied by a detailed
explanation of the reasons for the deviation.  In this case, the
deviation has been caused by the events described in the
following Rationale.

Rationale

The downgrade reflects S&P's view that the significant escalation
of the political turmoil in Ukraine makes the expected financial
support package from Russia less certain should the government of
President Yanukovych fall.

Hundreds of thousands of protesters took to the streets in Kiev
and other major Ukrainian cities after Mr. Yanukovych suspended
the signing of an Association Agreement with the EU -- which
included a Deep and Comprehensive Free Trade Area Agreement -- on
Nov. 23, 2013.  Since then, calls for Mr. Yanukovych to step down
from power have increased.  Protests, and the security forces'
reaction to them, have turned violent and have resulted in loss
of life.  Political tensions significantly increased after
Mr. Yanukovych signed a set of new laws on Jan. 17, 2014, which
criminalized the protesters' activities.  S&P notes that the
Ukrainian parliament voted to scrap these laws, while Prime
Minister Azarov and his cabinet have also resigned.

It is currently unclear how the political situation will be
resolved.  In S&P's view, the leading opposition candidates do
not have control or the full support of the protesters.  As a
result, Mr. Yanukovych could hold onto power if wealthy
individuals from Ukraine's business community continue to support
him politically, while the Russian government supports him
financially.  However, if he loses power -- either by being
forced from office or by early presidential elections being
called -- and if diplomatic relations with Russia deteriorated,
S&P believes the US$15 billion (about 8% of Ukraine's 2014 GDP)
in direct financing to the Ukrainian government from Russia could
be put at risk.

The Russian government disbursed an initial US$3 billion (about
2% of GDP) to Ukraine last month by allowing its National Wealth
Fund to be the sole subscriber to a Ukrainian government bond
issue. The bonds mature in two years with a 5% coupon, well below
the 12% secondary market yield on an outstanding two-year
Ukrainian dollar bond.  If political turbulence leads to a new
government that is negatively inclined toward the current
government's alliance with Moscow, S&P believes the bonds could
be subject to delayed or non-payment.

S&P views Ukraine's external liquidity as "weak," under its
criteria.  S&P projects its gross external financing needs at
155% of current account receipts and usable reserves.  S&P
expects that, to cover those financing needs, rollovers of trade
financing and other private sector debt will need to complement
direct financial support from Russia.  Further support should
come from an additional agreement with Russia's Gazprom to reduce
the price of Naftogaz gas imports by about 30%.

As a result of the political turmoil, the Ukrainian hryvnia has
depreciated by about 2.5% so far in 2014.  S&P assumes that it
will stabilize and be maintained against the U.S. dollar at a
rate of around UAH8.5:USD1.  S&P projects foreign currency
reserves held at the National Bank of Ukraine (NBU; the central
bank) of about two months of current account payments and 35% of
external short-term debt (by remaining maturity) in 2014.

S&P estimates the change in general government debt in 2014 at
about 6% of GDP, and general government net debt at about 38% of
GDP.  S&P expects the Russian loans to meet existing foreign
currency government debt service in 2014-2015, rather than
significantly increasing government debt.  About 52% of gross
government debt is currently denominated in foreign currency,
although mostly on concessional terms.

"We expect local currency financing of the general government
deficit to continue to come largely from the NBU and state-
controlled banks.  The NBU held 58% of local currency debt as of
December 2013, while banks held a further 32%, which is about 11%
of commercial bank assets.  We therefore see a lower likelihood
of default on local currency government debt than on foreign
currency debt, reflected in a one-notch distinction between the
long-term foreign and local currency ratings," S&P said.

"Under our Banking Industry Country Risk Assessment methodology,
we classify Ukraine's banking sector in group '10', our weakest
category.  We view the banking system as an impediment to
monetary policy flexibility and the functioning of the
transmission mechanism.  Problem loans, including nonperforming
and restructured loans in the banking system, are very high at
about 40% of total loans and could rise further if there were a
sharp hryvnia devaluation, as 34% of bank loans were denominated
in foreign currency as of November 2013 (latest available data),"
S&P added.

S&P estimates Ukraine's GDP per capita at US$4,300 in 2014.  S&P
projects the population will continue to decline by about 0.5%
per year (leading to unaddressed medium-term pressure on age-
related expenditures).  Due to weak external demand for Ukraine's
metals and machinery exports, and a continued decline in
industrial production, S&P forecasts trend growth at 1.8%.

Outlook

The negative outlook reflects S&P's view that there is at least a
one-in-three chance that it could lower its long-term sovereign
credit ratings on Ukraine over the next 12 months.  S&P could
lower the ratings if political turmoil resulted in a further
reduction in the government's administrative capacity to meet
debt service, or if the expected financial support from Russia is
not realized and no alternative funding sources can be found.

The ratings could stabilize and eventually improve if political
tensions were to abate and the external funding of Ukraine's high
gross external financing requirement were secured.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable.  At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee
by the primary analyst had been distributed in a timely manner
and was sufficient for Committee members to make an informed
decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.  The chair
ensured every voting member was given the opportunity to
articulate his/her opinion.  The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook.

RATINGS LIST

Downgraded; Outlook Action
                                        To             From
Ukraine
Sovereign Credit Rating
  Foreign Currency                      CCC+/Neg/C   B-/Stable/B
  Ukraine National Scale                uaBB+/--/--  uaBBB-/--/--
Senior Unsecured                       CCC+               B-
Transfer & Convertibility Assessment   CCC+               B-

Outlook Action; Ratings Affirmed

Ukraine
Sovereign Credit Rating
  Local Currency                        B-/Neg/B     B-/Stable/B


UKRAINIAN RAILWAYS: S&P Alters Outlook to Stable & Affirms B- CCR
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on Ukrainian railway company The State Administration of
Railways Transport of Ukraine (Ukrainian Railways) to stable from
negative.  At the same time, S&P affirmed its 'B-' long-term
corporate credit rating on Ukrainian Railways.

In addition, S&P affirmed its 'B-' issue rating on the limited-
recourse loan participation notes issued by special-purpose
vehicle (SPV) Shortline PLC.

The outlook revision follows a similar rating action on the
sovereign on Dec. 26, 2013.  S&P believes that, following the
Russian government's decision to provide US$15 billion in direct
financing to Ukraine, the challenges faced by Ukrainian companies
have eased somewhat for the coming 12 months.  These challenges
include foreign-exchange controls that the Ukrainian government
increased in an effort to secure sufficient foreign currency to
meet its elevated external financing needs.  The challenges also
include the risk of a devaluation of the Ukrainian hryvnia (UAH)
and overall weak economic growth prospects in the near team.

S&P continues to consider the Ukrainian banking sector, where
Ukrainian Railways holds its liquid funds and which provides most
of the company's debt facilities, to be weak.  S&P also believes
that access to the international financial markets remains
restricted for Ukrainian corporations as a result of weak
sovereign credit quality.

S&P sees Ukrainian Railways as a government-related entity (GRE)
and believes that there is a "very high" likelihood of timely and
sufficient extraordinary government support in the event of
financial distress.  This reflects S&P's assessment of the
company's:

   -- "Very important" role for Ukraine, as the manager of the
      national rail infrastructure, passenger transport provider,
      and dominant freight provider; and

   -- "Very strong link" with the Ukrainian government.  This
      takes account of Ukrainian Railways' current status as a
      state administration, its likely transition into a 100%
      government-owned joint-stock company (JSC) under a planned
      reform, and S&P's view that the new JSC will not be
      privatized over the medium term.

S&P caps its rating on Ukrainian Railways at the level of the
sovereign rating.  This reflects Ukrainian Railways' GRE status,
with strong government linkages, 100% state ownership, and S&P's
view that transportation infrastructure companies are highly
sensitive to country risk.  This reflects the essential nature of
rail infrastructure; Ukrainian Railways' significant exposure to
Ukraine, its country of domicile; and the regulatory, legal, and
political frameworks under which the company operates.

The stable outlook on Ukrainian Railways reflects that on the
sovereign.  It also reflects S&P's view that Ukrainian Railways
will manage expansion capex carefully and prevent any further
liquidity pressure while its access to long-term financing
remains constrained and its operating environment weak.  Under
S&P's base-case scenario, it believes that Ukrainian Railways'
sources of liquidity will continue to cover uses by at least
about 1x over the coming year.

S&P could raise the rating on Ukrainian Railways if it upgrades
Ukraine.  S&P is unlikely to rate Ukrainian Railways above the
sovereign due to its high country risk exposure and its GRE
status.

S&P could lower the rating on Ukrainian Railways if liquidity
pressures escalate.  This could occur if S&P forecasts a
reduction in readily available liquidity sources, which could
occur, for example, if Ukrainian Railways pursues investments
financed with short-term debt or/and the availability under its
existing committed credit lines with local banks becomes
restricted. Liquidity pressures could also emanate from a breach
in financial covenants.

S&P could also take a negative rating action if it lowers its
rating on Ukraine, as this could imply additional challenges in
Ukrainian Railways' operating environment and restrict its access
to liquidity further.



===========================
U N I T E D   K I N G D O M
===========================


ALAWAY LTD: Goes Into Administration
------------------------------------
Scunthorpe Telegraph reports that Alaway Ltd has gone into
administration.

Chris White -- chriswhite@thepandapartnership.com --  and John
Russell -- johnrussell@thepandapartnership.com -- of The P&A
Partnership were appointed as joint administrators of Alaway Ltd
on December 29.

"Despite trading successfully within the construction industry
for a number of years, during 2013 Alaway Limited experienced a
number of financial constraints. . . . This, coupled with the
level of competition within the industry, resulted in the company
finding it increasingly difficult to secure larger profitable
contracts," the report quoted Mr. White as saying.

The report relates that the company does not have any employees
-- any labor required was sourced from a connected group company
-- and the administrators are currently reviewing the company's
ongoing contracts to see if any can be completed.

The administrators also wrote that, given the "nominal" assets of
the company, they have not received any serious expressions of
interest to date, the report says.

Alaway Ltd is a construction company.  It specializes in building
and refurbishing care homes, psychiatric care facilities and
hotel and leisure complexes.


ARROW GLOBAL: S&P Assigns 'B+' Credit Rating; Outlook Stable
------------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'B+' counterparty credit rating to U.K.-based debt purchaser
Arrow Global Group PLC, the listed entity created following
completion of the group's initial public offering in October
2013.  The outlook on Arrow Global is stable.

At the same time, S&P affirmed the 'B+' counterparty credit
rating on the group's intermediate holding company, Arrow Global
Guernsey Holdings Ltd., then withdrew it at the company's
request.  S&P has also affirmed the 'BB-' issue rating and '2'
recovery rating on the GBP220 million senior secured term notes
issued by the group's wholly owned subsidiary, Arrow Global
Finance PLC, and guaranteed by the group's main subsidiaries.

Arrow Global is the listed non-operating holding company that has
consolidated the activities of the group since October 2013.
S&P's rating on Arrow Global reflects the group credit profile
(GCP) of the consolidated group and its view that there are no
material barriers to cash flows from the operating subsidiaries
to the holding company.

S&P's assessment of the GCP reflects Arrow Global's focus on the
U.K. distressed consumer debt purchase market.  In S&P's opinion,
this market is subject to material reputational, regulatory, and
operational risks.  While S&P expects the operating cash flow
coverage of interest expense to compare favorably with peers in
the next 12-18 months, it also considers Arrow Global's financial
track record to be somewhat shorter than rated U.K. peers Lowell
Group Ltd. and Cabot Financial Ltd.  Over the same period, S&P
also expects that the current build-up phase of the company's
receivables portfolio will continue to constrain net cash flow
generation after S&P deducts acquisition spend.

The rating is supported by the group's strengthening position
among the three leading U.K. distressed debt purchasers,
continued investments in data analytics capabilities in
cooperation with its debt collection partners, S&P's view of the
flexibility in its business model afforded by its outsourced
collection model, and the focus on small, annuity-like
collections.

The stable outlook on Arrow Global reflects S&P's expectation
that continued growth in total collections will support the
group's credit profile in the next year, leading to a further
improvement in cash flow coverage and leverage metrics.

"While we are unlikely to raise the ratings in the near term, we
could do so in the next 18-24 months on the back of a successful
lengthening of the company's financial track record, provided
that collections continue to meet management's expectations, any
expansion into new segments or markets remains consistent with
the risk appetite in the U.K., and the operational risk
management track record remains sound.  We would also expect the
prospective adjusted EBITDA (gross of portfolio amortization and
fair value adjustments) coverage of cash interest expenses to
move to close to 6x," S&P added.

S&P could lower the ratings on Arrow Global if it sees evidence
of a failure in its control framework, adverse changes in the
regulatory environment, or a material worsening in collections
against management's expectations, leading to an adjusted EBITDA
coverage of interest expenses falling below 4.5x.


BARNETTS: In Administration, Breaks Into Four Firms
---------------------------------------------------
Neil Rose at Legal Futurees reports that leading volume
conveyancer Barnetts has been broken into four after going into
administration.

However, the report relates that no jobs are being lost at the
Southport-based firm, whose senior partner, Richard Barnett, is a
leading member of the Law Society council.

Conveyancing book has been bought by Essex-based licensed
conveyancers DC Law, the personal injury and litigation work by
Liverpool firm SGI Legal, care home work by national firm Simpson
Millar, and interest rate swap cases by claims adviser Seneca
Banking Consultants, according to Legal Futurees.  The report
relates that both DC Law and SGI Legal are alternative business
structures.

In a statement, the administrators -- Leonard Curtis Business
Solutions Group -- said the "reconstruction . . . has preserved
the business, all 130 jobs and over 3,000 clients.   [It] was
required to enable the well-established conveyancing practice to
move forward and reach its full potential, at a time when the
residential property market is gaining strength," the report
discloses.

"The legal sector has and continues to face significant pressure
that requires legal practices to reassess their business in this
challenging environment.  We were pleased to enable a successful
disposal of the business, made possible by early planning coupled
with the quality of the practice and its staff," the report
quoted joint administrator Julien Irving added --
julien.irving@leonardcurtis.co.uk -- as saying.

The report notes that Simon Gibson, managing partner of SGI
Legal, said: "It's a tough operating environment for law firms
and I would urge those in difficulty -- whether from a financial
stability, professional indemnity or regulatory perspective -- to
take proactive and prompt action to plan for recovery or exit in
a manner which protects clients and secures the best outcome for
themselves.

The report adds that last year SGI Legal bought the personal
injury book of failed Midlands firm Challinors.  Mr Gibson said
the firm expects to make further acquisitions over the next six
months "as the full force of last year's personal injury reforms
start to bite," the report relays.

Barnetts is a leading volume conveyance.


CLWYD LEISURE: Considers Liquidation After Funds Pulled
-------------------------------------------------------
BBC News reports that Clwyd Leisure said it may have to consider
going into liquidation after councilors pulled their funding.

Denbighshire council is withdrawing its GBP200,000 annual support
due to concerns over the way the organization is run, according
to BBC News.  The report relates that a union said staff is
caught up in the middle as the trust is taking advice.

The report discloses that Clwyd Leisure was set up by
Denbighshire in 2001 to run facilities on its behalf, but last
year the trust warned that repeated council cash cuts could not
be sustained.

Trustees of the not-for-profit organization have been holding
talks with the authority for some months but the crunch came on
when the council's cabinet committee decided to withdraw
financial support for the next financial year, the report says.

The report notes that in a statement in response, Clwyd Leisure
said: "The unexpected decisions by the cabinet of Denbighshire
County Council have meant that directors must consider the impact
of those decisions and apply due diligence in agreeing a way
forward.  Before our professional advisors can recommend to the
board whether it is necessary to enter into liquidation, it is
necessary for the council to advise on its position with regard
to the pension fund guarantee."

After that cabinet meeting, the council said it had been looking
at the future of Clwyd Leisure for several months in a process
which had "highlighted serious concerns about the way the company
was being run and the operation of the facilities", the report
discloses.

It has pledged to reinvest the GBP200,000 in promoting tourism in
the area and wants to develop leisure services, the report notes.

Hannah Gibbins, regional coordinator for the GMB union, told the
Daily Post workers were told if there was no assistance the sites
could close with jobs lost, the report says.

Clwyd Leisure is a trust running three seaside leisure sites in
Denbighshire.  It employs 70 permanent and 55 seasonal workers at
Rhyl Sun Centre along with Prestatyn's Nova Centre and the North
Wales Indoor Bowls Centre.


COBBETTS LLP: Insolvency Costs Nearing GBP1 Million, KMPG Says
--------------------------------------------------------------
John Brazier at InsolvencyNews reports that costs incurred for
the administration of insolvent law firm Cobbetts LLP have
reached GBP844,000 and are likely to continue to rise.

InsolvencyNews, citing a report from administrators KPMG up to
December 2013, relates that the insolvency process is due to run
for at least another six months and costs could potentially
exceed GBP1 million.

Mark Firmin -- mark.firmin@kpmg.co.uk -- Brian Green --
brian.green@kpmg.co.uk -- and Howard Smith --
howard.smith@kpmg.co.uk -- of KPMG were appointed to the firm on
Feb. 6, 2013, selling the business to law firm DWF the next day
as part of a pre-pack deal, InsolvencyNews discloses.  The firm
entered administration owing GBP96.1 million to unsecured
creditors.

Between August and December 2013, administrators have racked up
time costs of GBP226,324, pushing the total cost of the
insolvency to a current total of GBP843,966, the report relays.

So far, the administrators have realised GBP3.9 million for
creditors through the sale of the business and "certain assets"
to DWF, InsolvencyNews notes.

According to InsolvencyNews, KMPG's report states the
administrators have requested a further six month extension to
the administration period in order to "facilitate realisation of
the remaining assets of the LLP and to carry out an orderly exit
from the administration."

Debt recovery specialist Incasso, which was 100% owned by
Cobbetts, was sold in a separate deal to midlands-based law firm
HL Legal Solicitors in February 2013, the report adds.


CO-OPERATIVE BANK: Baker-Bates Assisted Flowers in FSA Interview
----------------------------------------------------------------
James Quinn at The Daily Telegraph reports that the former deputy
chairman of the Co-operative Bank has admitted he coached
Rev. Paul Flowers to ensure he passed his interview with the
Financial Services Authority before becoming chairman.

According to The Daily Telegraph, Rodney Baker-Bates, one of two
deputies put in place to assist Mr. Flowers due to his lack of
financial knowledge, disclosed that he was one of three rival
candidates for the role for which the former Methodist minister
was eventually selected.

Appearing before the Treasury Select Committee, he and
David Davies, the other ex-deputy chairman, both confirmed
earlier evidence that they had resigned from the bank's board
because they were uneasy with its attempts to buy Lloyds Banking
Group's Project Verde branches, The Daily Telegraph relates.

The Co-op pulled out of its deal to buy the branches in April
2013, six weeks before a GBP1.5 billion capital shortfall was
uncovered at the bank, The Daily Telegraph recounts.

Mr. Baker-Bates told the committee, chaired by Andrew Tyrie, that
he helped Mr. Flowers prepare for his "controlled function"
interview with the City regulator, The Daily Telegraph relays.

Mr. Baker-Bates chaired Britannia Building Society until its
merger with the Co-op in 2009, The Daily Telegraph states.  He
told the committee that he had been one of four candidates for
the role of chairman, The Daily Telegraph notes.

When asked why Mr. Flowers was appointed over him, Mr. Baker-
Bates, as cited by Mr. Baker-Bates, said, to the laughter of some
on the committee, "I was told afterwards he'd done very well in
the psychometric tests."

"He had a much better understanding than I did of the complexity
and the politics of the Co-operative Group."

Mr. Davies said that he had been told that Mr. Flowers was chosen
for his leadership skills, The Daily Telegraph relates.

Mr. Baker-Bates resigned from the bank in July 2012, while
Mr. Davies resigned in June 2013, The Daily Telegraph recounts.

Both men had been concerned about the potential problems that
might have arisen from the Verde acquisition of 631 TSB branches,
with Mr. Baker-Bates an early opponent, threatening to resign as
early as October 2011, The Daily Telegraph discloses.

Mr. Davies said that the FSA, in the form of Andrew Bailey, did
not make it clear how much extra capital the bank would need to
complete the transaction, The Daily Telegraph notes.

According to The Daily Telegraph, the TSC's hearings into the
failed Project Verde deal between Lloyds and the Co-op are due to
complete by the end of February, with Mr. Bailey, now head of the
Prudential Regulation Authority, still to appear.

                     About Co-operative Bank

Co-op Bank -- part of the mutually owned food-to-funerals
conglomerate Co-operative Group -- traces its history back to
1872.  The bank gained prominence for specializing in ethical
investment.  It refuses to lend to companies that test their
products on animals, and its headquarters in Manchester is
powered by rapeseed oil grown on Co-operative Group farms.

Founded in 1863, the Co-op Group has more than six million
members, employs more than 100,000 people, and has turnover of
more than GBP13 billion.

                           *     *     *

The Troubled Company Reporter-Europe on Nov. 14 and 18, 2013 has
reported that Moody's Investors Service has affirmed The
Co-operative Bank's Caa1 senior unsecured debt and deposit
ratings, and changed the outlook on the rating to negative from
developing, and Fitch Ratings has downgraded the company's Issuer
Default Rating to 'B' from 'BB-' and placed it on Rating Watch
Negative.


DUNSLEY HALL: In Administration, Continues to Trade
---------------------------------------------------
Carina Perkins at bighospitality.com reports that Dunsley Hall
has gone into administration and will be sold as a going concern
and administrators Bob Maxwell -- bob.maxwell@begbies-traynor.com
-- and Nick Reed -- nick.reed@begbies-traynor.com -- of Begbies
Traynor said the business would continue to trade as usual in the
interim.

"Like a number of other hotels we have been appointed over the
last couple of years, the financial problems at Dunsley Hall
Country House Hotel have been caused by a slowdown in consumer
spending," bighospitality.com quoted Mr. Maxwell as saying.

"We are continuing to run the business as normal whilst we seek a
buyer.  Already, we have been approached by several interested
parties and we are hopeful of completing a sale in the near
future," Mr. Maxwell added, the report notes.

Dunsley Hall is a Victorian hotel, which is set in five acres of
landscaped grounds and has suites for 120 guests.


HEADEN AND QUARMBY: In Administration, Cuts 33 Jobs
---------------------------------------------------
BBC News reports that Headen and Quarmby has gone into
administration with the loss of 33 jobs.

The administrators said orders had fallen sharply and they were
hoping to sell it as a going concern, according to BBC News.

Firm champion Mary Portas told the BBC she was "heartbroken" and
"completely blown away" by the news.  Ms. Portas, BBC News notes,
believed the firm's factory had suffered from a cash flow problem
but that it remained a viable business.

She said in a statement: "I'm really surprised to hear that
Headen and Quarmby, the business that we licensed to manufacture
the brand Kinky Knickers, has gone into administration." the
report notes.  Ms. Portas, BBC News relays, said the business had
been in confident form: "Right up until this announcement, H&Q
were telling me of their ambitious plans for our brand and the
others they manufacture under license as well as plans they had
for their own ranges.  It's especially sad as they were even
opening an Academy later this month to help share the skills and
learning."

"A drop in post-Christmas orders from key customers and a decline
in sales volumes has significantly affected the business and
resulted in a deterioration of its working capital position," the
report quoted Kerry Bailey -- kerry.bailey@bdo.co.uk -- from
administrators BDO, said.

The report discloses that BDO said the company had been affected
by "a small number of bad debts" over the Christmas period, but
these were low-value and that ultimately, the lack of future
orders was the main reason for the administration.

Headen and Quarmby is a British underwear maker championed by
retail expert Mary Portas.


HERO ACQUISITIONS: Moody's Assigns 'B2' CFR; Outlook Stable
-----------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B2
corporate family rating (CFR) to Hero Acquisitions Limited (HSS
or the company). Concurrently, Moody's has assigned a (P)B2
rating to the GBP200 million senior secured notes maturing in
2019 to be issued by HSS Financing plc, a subsidiary of HSS. The
outlook on the ratings is stable. This is the first time Moody's
has assigned a rating to the company.

The proceeds from the notes will be used primarily to refinance
HSS's existing bank debt (GBP164 million as of September 28,
2013), and to distribute GBP29 million to shareholders.

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings reflect Moody's preliminary
credit opinion regarding the transaction only. Upon a conclusive
review of the final documentation, Moody's will endeavor to
assign a definitive rating to the facilities. A definitive rating
may differ from a provisional rating.

RATINGS RATIONALE

"The (P)B2 CFR reflects HSS's leading position in the UK
equipment rental market supported by its extensive range of
products and nationwide branch network, and its large customer
base providing exposure to a wide range of industries" says
Sebastien Cieniewski, Moody's lead analyst for HSS. However, the
rating is constrained by HSS's high adjusted leverage with
limited de-leveraging prospects, its limited free cash flow (FCF)
generation due to high capex requirements, and the inherent
cyclicality of the equipment rental market partly mitigated by
the company's relatively lower exposure to the construction
industry.

HSS benefits from its position as the second largest player in
the UK tool and equipment rental market behind Speedy Hire. The
company has an extensive network of 250 locations throughout the
UK and Ireland offering a range of 1,600 product lines, with a
focus on powered access and power generation based on the
replacement value of the assets, providing proximity to its
customers' sites and "one-stop-shop" capability. Thanks to HSS's
focus on the "maintain and operate" end of the equipment rental
market, the company has broader exposure to a wider range of
industries than the overall UK equipment rental market which is
more concentrated around construction and infrastructure (63% as
per the European Rental Association). HSS has approximately
30,000 live customer accounts with a portion of these accounts
being recurring in nature. No single customer contributed to more
than 3% of group revenues and the top 20 clients account for 18%
of HSS's total turnover. Moody's notes that the proportion of
larger key accounts has grown over the last couple of years due
to HSS' focus on its longer-term more profitable and recurring
relationships.

HSS's rating also incorporates the inherent cyclicality of the
equipment rental market, and its operating leverage. For example,
HSS's revenues dropped by 15% to GBP147 million in 2009 compared
to 2008, while the percentage EBITDA drop was even larger due to
the significant proportion of fixed costs. However, HSS's focus
on the "maintain and operate" end of the market resulted in the
company experiencing a smaller decline in revenues in 2009
compared to its construction-focused peers. Revenue growth
recovered as early as from 2010 and continued since then to reach
GBP234-236 million by 2013 (based on latest estimates and pro-
forma for the acquisition of UK Platforms).

HSS's should also achieve additional flexibility to adjust its
fleet size and fixed costs to changes in demand through its new
hub-and-spoke distribution model developed since 2011. This
distribution model is designed to increase the utilization of the
equipment fleet by providing overnight redistribution from
regional distribution centers through each store without keeping
large stocks of equipment at each branch location.

The company's adjusted gross leverage is high for the sector, at
4.1x as of December 28, 2013 (pro-forma for the transaction).
Moody's only expects limited de-leveraging of around half a turn
over the next 3 years, driven by mid-single digit revenue growth
as demand for equipment grows in line with UK economic growth.
However, we view negatively the company's geographical
concentration in the UK, providing about 95% of revenues. Moody's
notes that HSS has a relatively weak net PP&E/debt coverage at
approximately 0.5x as the company maintains its fleet through
most of its useful life and even beyond, if refurbished, leading
to an overall low book value of its hire assets.

HSS's liquidity position is adequate. Although opening cash will
be close to zero, liquidity will be supported by a new GBP60
million revolving credit facility maturing in 2019, undrawn at
closing. While the capital-intensive nature of HSS's business
model results in weak free cash flow generation, the company
benefits from flexibility in terms of capex. For example, as
demand for equipment rental weakened during the economic
downturn, the company reduced its fleet capex well below
maintenance levels to GBP8 million in 2009 to mitigate the
decrease in EBITDA. With the stronger market fundamentals, HSS
expects to increase its capex spend to GBP60-65 million in 2014
before reducing it to around GBP40 million from 2015 compared to
maintenance levels of around GBP25 million. With the increased
capex in 2014, we expect the company to draw above GBP20 million
under its revolving credit facility offsetting some of the
expected EBITDA growth for leverage calculations. Moody's does
not anticipate that the company will build a significant cash
balance, as we expect it to participate in the consolidation of
the very fragmented UK equipment rental market through bolt-on
acquisitions. The GBP60 million revolving credit facility has a
springing leverage covenant that effectively acts as a draw stop,
tested only once 25% of the facility is utilized. Covenant
headroom at the closing of the transaction is high at around 40%.
We note that the revolving credit facility could be replaced over
time by an asset-based lending (ABL) facility of a similar
amount.

The notes are senior secured obligations benefiting from senior
secured guarantees provided by the issuer and most of its
material operating subsidiaries -- guarantors accounted for 95%,
97%, and 98% of the consolidated turnover, adjusted EBITDA, and
assets, respectively, of the group as of the last twelve months
(LTM) ending 28 September 2013. The notes will also benefit from
a first lien pledge over assets and shares of the guarantors.
Although the RCF lenders will rank ahead in a scenario of
security enforcement, the (P)B2 assigned to the notes is at the
same level as the CFR but weakly positioned given the revolving
credit facility ranking ahead. Pro-forma for the GBP29 million
distribution, GBP62 million of shareholder loans will remain
outstanding within the restricted group. Moody's has considered
these instruments as equivalent to equity.

HSS's stable outlook reflects our expectation of a moderate
growth of revenues over the medium-term due to more favorable
macro-economic conditions in the UK. The outlook also reflects
the expectation that the company will maintain a prudent
acquisition strategy and benefit from significant availability
under its RCF.

Upwards pressure could arise if the company's debt to EBITDA were
to decrease sustainably below 3.0 times and EBIT to interest
increases above 2.0 times. Moody's would also expect the company
to maintain significant flexibility under its revolving credit
facility. Conversely, negative pressure could arise on the
ratings if debt to EBITDA increases above 4.5 times on a
sustained basis, EBIT to interest decreases towards 1.5 times, or
the company's liquidity profile weakens. A change to an ABL in
the capital structure could result in a notching of the notes.

The principal methodology used in these ratings was the Global
Equipment and Automobile Rental Industry published in December
2010. Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

Headquartered in Surrey, United Kingdom, HSS is a provider of
tool and equipment hire and related services in the United
Kingdom and Ireland. The company operates mainly in the B2B
market, and generated GBP234-236 million of revenues in 2013
(based on management's estimates pro-forma for the acquisition of
UK Platforms). HSS was acquired by Exponent Private Equity
(Exponent) in October 2012. Exponent has 79% ownership in HSS
with the management holding the remaining 21%.


LIBERTY GLOBAL: Moody's Affirms 'Ba3' CFR; Outlook Stable
---------------------------------------------------------
Moody's Investors Service affirmed the Ba3 Corporate Family
Rating and the Ba3-PD Probability of Default ratings of Liberty
Global plc. The rating outlook is stable.

The affirmation follows the announcement that Liberty Global and
Ziggo N.V. ('Ziggo') have reached a conditional agreement
pursuant to which Liberty Global, through a wholly-owned
subsidiary, will acquire full ownership of Ziggo, in which it
currently owns an equity stake of 28.5%. Liberty's offer for
Ziggo, which consists of 0.2282 Liberty Global Class A shares,
0.5630 Liberty Global Class C shares (adjusted for dividend) and
EUR11.0 in cash has been recommended by Ziggo's management and
supervisory boards, but is subject to regulatory approval and,
under certain circumstances, Ziggo's shareholders approval. The
transaction values Ziggo at an enterprise value of around
EUR10.0 billion. The cash element of the purchase price, which
equates to around EUR1.6 billion will largely be funded from debt
to be raised at Ziggo. This will bring Ziggo's leverage broadly
in line with Liberty Global's corporate target of managing debt
so that a ratio of Debt/EBITDA (Liberty Global definition) of
between 4.0 and 5.0 is maintained. In addition, Ziggo and Liberty
Global expect to incur approximately EUR300 million in
transaction and financing costs, including costs associated with
refinancing, tendering and/or exchanging Ziggo debt, which will
be funded from available cash resources at Ziggo and Liberty
Global as well as from the incremental debt to be raised at
Ziggo. The affirmation assumes that the transaction is concluded
as currently laid out.

RATINGS RATIONALE

The ratings affirmation at Ba3 CFR and a stable outlook
acknowledge the substantially leverage-neutral funding and the
solid strategic rationale of the transaction. However, Liberty
Global's leverage will remain high for the Ba3 rating category.
Moody's estimates that on a September 30, 2013 (last-twelve-
months) basis pro forma for the Ziggo and the 2013 Virgin Media
Inc. (CFR at Ba3) acquisitions, Liberty Global's Debt/EBITDA
ratio (Moody's definition) would be around 5.6x. Given the
continued weak positioning in the Ba3 rating category, the
ratings affirmation is predicated on an assumption of: (i)
successful integration and achievement of cost saving targets for
Virgin Media and Ziggo, (ii) delivery of a solid overall
operating performance with visible revenue and EBITDA growth in
the near to intermediate term and (iii) management of Liberty
Global's free cash flow so that leverage moves to and is
maintained at a level below 5.5x.

Liberty will use its own equity as well as debt to be raised at
the Ziggo level to fund the acquisition of the shares in Ziggo it
does not already own. Given Ziggo's expected post-deal leverage
(Moody's calculation) of 5.3x Debt/EBITDA (on a December 2013 pro
forma basis), Moody's expects the transaction to be broadly
leverage-neutral for the consolidated Liberty Global group. The
agency also notes that Liberty Global intends to repay its Ziggo-
related collar and margin loans in connections with the
acquisition. This is expected to be funded from cash-on-hand, but
could also involve (for the collar loans) some equity issuance.
While Liberty Global has not considered this debt in its leverage
calculation, Moody's had included it in its leverage and the
repayment will therefore be marginally leverage-positive for
Moody's ratios.

It is currently unclear how long Ziggo will remain a stand-alone
legal entity post-closing, however, Moody's believes that it is
likely that a full merger with Liberty's UPC Netherlands unit
will be effected eventually. Work on operational integration of
the two companies will in any case start immediately, guided by a
joint integration committee. Through their combined networks the
two cable companies will cover over 90% of Dutch homes. Moody's
therefore expects visible synergies to develop from the reduction
of operating expenses (marketing costs, administrative expenses
such as call centers) and from capex efficiencies, which should
benefit Ziggo's EBITDA and cash flow generation going forward.
Although limited in scale, Moody's also anticipates that Ziggo's
enhanced status as national player can be translated into some
revenue synergies.

While Moody's takes comfort from Liberty Global's solid track
record in integrating acquisitions and achieving planned
synergies (expected synergies from the integration of Virgin
Media are now almost twice the amount initially planned), the
achievement of these synergies for Ziggo, which Ziggo and Liberty
Global believe can reach EUR160 million by 2018 on an annual run-
rate basis, is subject to the timely and successful integration
of Ziggo into Liberty Global's operations.

Moody's expects Liberty Global to remain an opportunistic
acquirer of capital properties, but the agency also notes that
the opportunities for large scale acquisitions in Liberty
Global's core European area of activity are now limited. The
company has also indicated that it might spin off its Latin
American operations (VTR Finance B.V.-B1 CFR- and Liberty
Cablevision of Puerto Rico LLC -B3 CFR-) to shareholders, which
would allow management to focus on its European operations and
the integration of Ziggo and the continued integration of Virgin
Media.

Notwithstanding its large scale M&A activity, Liberty Global is
also continuing an aggressive share repurchase program. In
connection with the Ziggo transaction the company increased its
June 2013 stock repurchase program to USD4.5 billion and extended
the time for completion from mid-2015 to the end of 2015. Moody's
expects these share repurchases to absorb a substantial portion
of the company's free cash flow generation. As a consequence,
Moody's does not expect any material reduction in absolute debt
amounts in the near term and de-leveraging will therefore largely
be a function of EBITDA growth.

Liberty Global's Ba3 CFR remains supported by (i) the company's
good geographic diversification; (ii) its substantial scale which
translates into significant purchasing advantages and the ability
to implement best practice across diverse operations and (iii) a
track record of successful acquisition integration.

Liberty Global's recent results for the nine months to
September 30, 2013 include those of Virgin Media as of June 7,
2013. Results remained solid overall with 5.1% revenue growth and
3.8% OCF growth on a rebased basis for the existing Liberty
Global companies. Had Virgin Media, which is growing revenues
more slowly than the existing Liberty Global group, been included
from January 1, revenue and OCF growth would have been
approximately 4.1% and 4.6% respectively. However, the solid
overall performance balances out continued weakness in the CEE
markets (0.1% organic revenue decline and a 2.7 % rebased OCF
decline for the nine months of 2013) and a performance
deterioration in the highly competitive Dutch markets (-1.8%/-
5.1%) on the one hand, and continued strong growth in Germany
(+8.1%/+9.2%) and Belgium (+12%/+8.1%) on the other. Growth in
Belgium was primarily fuelled by continued strong uptake of
Telenet's mobile phone products. Moody's believes that third
quarter revenue and profit trends will have broadly continued for
the remainder of 2013 and into 2014.

Liquidity

Moody's regards Liberty Global's liquidity provision as
sufficient for its current requirements. As of September 30,
2013, Liberty Global reported cash of USD2.2 billion, of which
USD1.2 billion was at the level of the parent company and at
non-operating subsidiaries. In addition, available borrowing
capacity under the various credit facilities within the group
totalled USD2.4 billion. Liberty Global and its subsidiaries have
no near-term maturities that are material relative to the size of
the group and out of Liberty Global's total debt at September 30,
2013, around 86% do not fall due before 2018 or thereafter.
Moody's has assumed that Liberty Global will manage its ongoing
M&A activity and stock repurchases so that it will have
sufficient resources to repay its Ziggo-related collar and margin
loans.

Liberty Global's main subsidiaries are cash-flow generative and
the company has a track record of up-streaming cash from them.
Moody's notes that Liberty Global remains dependent on timely
distributions from its operating groups to fund distributions and
corporate activity at the parent level and that distribution
capacity at those groups is subject to restricted payment and
covenant tests.

What Could Move The Ratings -- DOWN

Following the announcement of the Ziggo acquisition, LG's ratings
remain weakly positioned in the Ba3 category. Downgrade pressure
could develop, if:

(i) Liberty Global's acquisition activity and stock repurchase
activity result in leverage as measured by the company's
Debt/EBITDA ratio (setting aside the impact of the Sumitomo
collar loan) exceeding a ratio of 5.5x on a sustained basis
(excluding any unusual currency translation effect on reported
results);

(ii) the company experiences a marked deterioration in its
operating performance; or

(iii) Liberty Global generates negative free cash flow (after
capex and dividends) on a sustained basis.

What Could Move The Ratings -- UP

Moody's does not expect any upgrade pressure in the near term.
Over time, continued strong operating performance and achieving a
consolidated leverage ratio (Debt/EBITDA ratio as defined by
Moody's) sustained well below 4.5x (excluding any unusual
currency translation effect on reported results) together with a
FCF/Debt ratio approaching double digits could result in positive
pressure on the ratings.

The principal methodology used in this rating was the Global Pay
Television - Cable and Direct-to-Home Satellite Operators
published in April 2013. Other methodologies used include Loss
Given Default for Speculative-Grade Non-Financial Companies in
the U.S., Canada and EMEA published in June 2009.

Liberty Global plc, headquartered in London, England is a large,
internationally operating cable operator with combined revenues
(including Virgin Media's pre-acquisition revenue) of around
USD17.4 billion on a September 30 2013 nine-month-annualized
basis.


MERGERMARKET GROUP: Moody's Corrects January 15 Rating Release
--------------------------------------------------------------
Moody's Investors Service issued a correction the January 15,
2014 rating release for Mergermarket Group.

Moody's assigned a B3 corporate family rating (CFR) and B3-PD
Probability of Default Rating (PDR) to Mergermarket Group, the
holding and parent company of Mergermarket USA Inc.

Moody's also assigned a (P)B2 rating to the GBP150 million first
lien term loan due 2021 and USD40 million Revolving Credit
Facility maturing in 2019, and a (P)Caa2 rating to the
GBP70 million second lien tem loan due 2022, to be issued by
Mergermarket USA Inc.  The outlook on all ratings is stable.
This is the first time Moody's has assigned a rating to
Mergermarket.  Moody's issues provisional ratings in advance of
the final sale of securities and these ratings reflect Moody's
preliminary credit opinion regarding the transaction only.  Upon
a conclusive review of the final documentation, Moody's will
endeavor to assign a definitive rating to the term loans.  A
definitive rating may differ from a provisional rating.

Ratings Rationale

The B3 CFR reflects (1) the company's high financial leverage
with limited deleveraging expected in the near term; (2) the
company's relatively small scale; (3) revenue concentrated on two
products, and within the financial services industry.

The B3 CFR also positively reflects the company's (1) leading
market position in niche segments, with an international
presence; (2) longstanding commercial relationships with top tier
players in each business segment served; (3) good track record of
growth in its largely subscription-based revenues (more than 90%
of revenues); and (4) high annual renewal rate exceeding 95%.

After Moody's standard adjustments, total leverage at closing is
expected to stand at around 7.0x.  However, Moody's expects that
the company will be able to reduce its leverage over the next two
years driven by modest increase in EBITDA and expected prepayment
out of excess cash flow.  Moody's expects the company's EBITDA to
show limited growth in the near term due to higher costs and
EBITDA margin to stand at around 30% on average.  Mergermarket
presents a high operating leverage with product salaries
representing c.80% of total costs in 2012.

Cash generated by operations is solid thanks to negative working
capital and low level of capex.  However, due to the high level
of interest, Moody's expects that the company's free cash flow
over the next two years will be relatively low, with FCF to debt
below 5% in 2014, gradually improving thanks to improved EBITDA.

The company has made some attempts to diversify away from its 2
core products (Mergermarket and Debtwire), by developing products
away from the financial services sector (biopharma, legal
analysis with the acquisition of Xtract Research in 2010 and
infrastructure with the acquisition of the Inframation Group in
2012) but with limited success in terms of weight in total
revenues with each of them representing between 3% and 6% of
revenues.  The ratings assume that there will be no material
acquisitions prior to the company having delevered significantly.

Mergermarket presents credit metrics based on "cash EBITDA".
This results in higher EBITDA and lower leverage than financials
based on UK GAAP and factoring in Moody's standard adjustments.
Moody's considers subscription value to be akin to a backlog
housed in unearned revenue, and utilizes the GAAP reported
financials for consistency with other rated issuers and in
recognition that expenses are growing in conjunction with revenue
and subscription levels.

Mergermarket's liquidity profile is adequate for its near-term
needs.  With zero opening cash, the company is immediately
reliant on its USD40 million RCF for liquidity.  However, this
should be repaid as free cash flow grows, and given that the
first lien debt amortizes by 1% p.a., with a cash sweep operating
from 2015 (based on 2014 Excess Cash Flow).  The RCF has a
springing leverage covenant when it is drawn by more than USD10
million.

The stable outlook reflects Moody's expectation that Mergermarket
will be able to maintain its strong leadership and customer base
globally, while benefiting from the expected growth in the M&A
and continued growth in the capital market activities in 2014 and
2015.  It also incorporates Moody's assumption that the company
will deleverage below 7x in 2014, and also will not embark on any
transforming acquisitions or make debt-funded shareholder
distributions.

The first lien term loan, RCF and second lien term loan all
benefit from the same security package, including guarantees from
material operating subsidiaries and security over the assets of
substantially all the guarantors.  All shareholder funding
entering Mergermarket Group -- which is the top company of the
restricted group -- will be in the form of common equity.  The
(P) B2 rating on the GBP170 million first lien term loan and the
pari-passu RCF reflects the fact that this debt ranks ahead of
the GBP70 million second lien term loan, which is consequently
rated (P)Caa2.

What Could Change The Rating UP

Positive pressure on the rating could materialize if (1) FCF to
debt approaches 10%; (2) Moody's-adjusted EBITDA margin is
sustained at around 30%; (3) Moody's-adjusted debt/EBITDA ratio
falls below 6.0x.

What Could Change The Rating DOWN

Negative pressure could be exerted on the rating if the company
fails to maintain the current momentum in its operational
performance, leading to a deterioration in renewal rate such that
(1) a weakening of its operational performance results in lower
cash generation; or (2) there is an aggressive change in its
financial policy; or (3) Moody's-adjusted debt/EBITDA ratio fails
to fall below 7.0x in 2014.

The principal methodology used in these ratings was the Global
Publishing Industry published in December 2011.  Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Mergermarket, headquartered in the United Kingdom, is a global
financial market information company.  Invoiced sales for the
fiscal year ended December 2012 was approximately GBP104 million.


OVERTON RECYCLING: Environcom Buys Firm Out of Administration
-------------------------------------------------------------
Will Date of letsrecyle.com reports that Weee reprocessing firm
Overton Recycling has been bought by rival company Environcom,
after financial difficulties saw the firm face being wound up by
administrators.

The company was placed into administration in November 2013,
after a sharp decline in income saw it post a loss of GBP943,000
for the six months to August 2013, according to letsrecyle.com.

The report notes that insolvency firm FRP Advisory oversaw the
deal, which Environcom claims will save around 50 Overton staff
from redundancy.

The report discloses that administrators estimated the company
and its assets to be worth a total of GBP457,797.  Assets owned
by Overton include its fridge recycling machine, valued at around
GBP230,606, and a 'Weee machine' valued at GBP105,634.

The report notes that documents published by the administrator
reveal that the firm encountered trading difficulties throughout
2013 with turnover falling from around GBP260,000 in early 2013,
to around GBP155,000 by October.  This followed a loss of around
GBP701,000 posted in the 12 months to March 2013, the report
relays.

Overton filed a Company Voluntary Arrangement (CVA) -- a legally
binding debt repayment agreement -- in August with debts totaling
GBP683,592 owed to creditors, including a total of GBP317,359
owed to Her Majesty's Revenue & Customs, the report relates.

Founder of the firm Dean Overton is also listed as being owed a
total of GBP18,352 by the company, while DSO Estates, a company
set up in June 2013 of which Mr. Overton is a director, is owed a
total of GBP48,016, the report says.

Under the Arrangement, the report notes that Overton agreed to
make monthly contributions of GBP5,000 per month out of its
trading profits to service the debts, generating an estimated
return of 22p in the pound for its creditors.

The report relates that the company lost a contract with Coca-
Cola as a direct result of entering the CVA process, which also
contributed to the falling income.  Due to a lack of available
funds the CVA was ended in November, and Overton was placed into
administration, the report discloses.

As a result of the deal, Overton will now be run under the
EnvironCom brand.

Overton Recycling, which ran a 40,000 tonnes per year capacity
recycling plant in the town of Lye, near Dudley, processed waste
electrical items from household and commercial sources.


REDIRACK: In Administration, Cuts 89 Jobs
-----------------------------------------
Peter MacLeod at shdlogistics.com reports that Redirack has been
put into administration with the immediate loss of 89 jobs.

RediRack started UK production in 1974 as part of the Interlake
Corporation, and subsequently became part of the Constructor
Dexion Group before it closed in 2003, according to
shdlogistics.com.

Shortly afterwards, the report relates that Redirack was bought
from the Norwegian based multinational Dexion Group Limited by a
team led by Phil Culling (MD) and Jack Holden (operations
director).

David Baillie -- davidbailliedecor@hotmail.co.uk -- of
PricewaterhouseCoopers has been appointed as the administrator.

Redirack is a pallet racking and mezzanine floor manufacturer,
based in Mexborough, South Yorkshire.


STEWART LINFORD: In Administration, Closes Business
---------------------------------------------------
Buck Free Press reports that Stewart Linford, one of the last
remaining stalwarts of Wycombe's furniture trade, shut its doors
in Kitchener Road, saying it paid the "ultimate price" after
taking out a controversial banking product.

But the Stewart Linford story is far from over, with the team
already up and running at new premises and in a new guise --
Luxury in Wood Ltd -- on the Cressex Industrial Estate, according
to Buck Free Press.

The report says that the chair-making business has had to close
due to cash flow problems caused by the delays in resolving
issues, and its claims for compensation, over an interest rate
swap.

This controversial method of financing, sold by some banks to
small and medium sized enterprises (SMEs), have come in for
stinging criticism in recent times, the report relays.

The report says that the complicated arrangements see banks offer
customers the right to fix the base rate on a loan at a certain
level to make sure any interest rate rise would not leave a
company's borrowing costs spiraling out of control - but around
30,000 SME's are thought to have found themselves in dire straits
through these products due to the unexpected financial impact
they could have.

According to the report, joint administrator Michael Goldstein
told the BFP: "Stewart Linford Chair Maker went into
administration.  Agents have been appointed who marketed the
business and the best offer to them was made by Luxury in Wood
Ltd, in order to preserve value and save jobs."

Mr. Linford and his team will now be operating from the factory
of Greengate, which makes high quality sofas, at Cressex.  It
will operate as a financially independent business but, Mr.
Linford said, the two manufacturers would complement each other,
the report notes.

"It is a radical change but it is the only way forward.  The
difficulty with the bank and with the rate swap has been the main
driver for this but we also had to look at how we could become
more efficient," the report quoted Mr. Linford as saying.


* SCOTLAND: Corporate Insolvencies Drop 27% in 2013
---------------------------------------------------
InsolvencyNews reports that the level of Scottish companies
entering insolvency has dropped 27% year-on-year, according to
new research from KPMG.

InsolvencyNews relates that the latest figures show there were
855 corporate insolvencies in 2013, the lowest figure since 2008
where there were 803, and considerably lower than the peak of
1,293 in 2011.

While the figures also show a marginal increase of 3% in the
final quarter of 2013 compared to the last quarter of 2012, this
follows a drop of 27% in Q3 and 45% in Q2 as compared to the
previous year, the report says.

Liquidations appointments fell 29% in 2013, going from 1028 in
2012 to 730 last year, although appointment levels have increased
by 10.3% since 2008, InsolvencyNews relays.

InsolvencyNews adds that the number of administration and
receivership appointments decreased 10% from 139 (2012) to 125
(2013).

InsolvencyNews quotes Blair Nimmo, head of restructuring for KPMG
in Scotland, as saying that: "As we enter 2014, these figures
continue to show a slowing in the level of corporate
insolvencies.

"For the first time since the start of the economic downturn, the
annual number of business failures in Scotland is no longer in
the thousands, which is another positive signal for the Scottish
economy.

"Despite a marginal year-on-year increase in the final quarter of
2013, the overall trend suggests a healthier environment as we
enter recovery and there is no doubt we are seeing fewer
businesses experiencing severe financial difficulties.

"Businesses which have been through a restructuring process may
be starting to feel more confident about their future prospects,
while those which have carefully managed costs and cash during
the past five years should be particularly well placed to pursue
growth in the year ahead."


                            *********

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.

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 Amazon.com.  Go to
http://www.bankrupt.com/booksto 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, and Peter A. Chapman,
Editors.

Copyright 2014.  All rights reserved.  ISSN 1529-2754.

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

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

The TCR Europe subscription rate is US$775 per half-year,
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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
202-241-8200.


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