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        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, February 20, 2014, Vol. 15, No. 36

                            Headlines

B U L G A R I A

NATSIONALNA ELEKTRICHESKA: S&P Lowers CCR to 'B+'; Outlook Neg.


F I N L A N D

FIRST QUANTUM: S&P Raises Rating on $350MM Unsecured Notes to B+


F R A N C E

LASER COFINOGA: Moody's Affirms 'Ba2' Rating; Outlook Stable


G E R M A N Y

KUKA AG: Moody's Changes Outlook to Positive & Affirms 'Ba3' CFR
SAFARI HOLDING: S&P Assigns 'B' LT Corp. Credit Rating
TELDAFAX: Former Executives Face Charges Over Delayed Insolvency


I R E L A N D

ELVERYS SPORTS: Several Investors Express Interest
MAGI FUNDING I: Moody's Hikes Rating on EUR11.8MM Notes to 'Ba2'
SIAC CONSTRUCTION: GDDKiA Appeals Rescue Plan Approval


I T A L Y

RHINO BONDCO: S&P Assigns 'B' LT Corp. Credit Rating


K A Z A K H S T A N

ALLIANCE BANK: Moody's Lowers Sr. Unsecured Debt Rating to 'C'
EURASIAN BANK: Moody's Affirms Low-B Ratings & 'E+' BFSR


N E T H E R L A N D S

NORTH WESTERLY: S&P Lowers Ratings on 2 Note Classes to 'CCC-'


R O M A N I A

STATIUNEA OCNA: EUR2.7 Million Debt Prompts Bankruptcy


R U S S I A

GE MONEY: Moody's Cuts Deposit Ratings to B2; Outlook Negative


U N I T E D   K I N G D O M

APPLEGUILD LIMITED: Goes Into Liquidation
BLUEPRINT PROPERTY: Forced Into Liquidation
CO-OPERATIVE BANK: Parent Uncovers GBP100 Million Costs Savings
ERIC ALCOCK: Goes Into Liquidation, Ceases Trading
INVENSYS PLC: Moody's Puts Ba1 Rating on Review for Upgrade

MERCATOR CLO: Moody's Affirms B1 Rating on EUR19MM Cl. B-2 Notes
OPERA FINANCE: S&P Withdraws 'D' Ratings on Two Note Classes
READERS'S DIGEST: Sold by Better Capital for Nominal Amount
SYNERGY CAPITAL: Bglobal PLC Secures Delay Loan Repayments
* Fasken Martineau Adds Ex-Davenport Lyons Tax Atty in UK


U Z B E K I S T A N

IPAK YULI: Fitch Publishes 'B-' Issuer Default Rating


X X X X X X X X

* U.S. Said Near Deal With EU on Reprieve for Swap-Trading Rules


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B U L G A R I A
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NATSIONALNA ELEKTRICHESKA: S&P Lowers CCR to 'B+'; Outlook Neg.
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Bulgaria-based electricity utility
Natsionalna Elektricheska Kompania EAD (NEK) to 'B+' from 'BB-'.
NEK is a subsidiary of the 100% state-owned holding company
Bulgarian Energy Holding (BEH).  The outlook on NEK is negative.

The downgrade follows the steep deterioration in NEK's credit
metrics in 2013, which has mainly been due to adverse regulatory
tariff decisions.  For example, NEK has not been able to fully
recover its disbursements for preferential subsidies to renewable
and combined heat and power generators (CHP).  In addition,
tariffs meant that NEK was not able to recover about Bulgarian
leva (BGN) 215 million of costs incurred under its long-term
power purchase agreements, amid excess supply in the Bulgarian
electricity system.  As a consequence, BEH has had to support NEK
with shareholder loans to cover NEK's immediate cash flow
deficits and liquidity needs.  However, S&P anticipates that
legislative and regulatory relief is forthcoming in 2014, on the
back of higher approved tariffs and allowed partial recovery of
the BGN215 million extra costs incurred.  S&P's base-case credit
scenario for 2014 forecasts continuing losses in the first part
of the year, but positive EBITDA margins in the second half.  S&P
continues to anticipate full and timely support from BEH during
NEK's financial recovery phase.

Following the transfer of loans to the unbundled electricity
system operator (ESO) and the refinancing of its syndicated loan
with shareholder loans, NEK's external debt has reduced to what
S&P estimates to be about BGN200 million (EUR100 million) at
Dec. 31, 2013.  In S&P's forecast, it treats the shareholder
loans from BEH (approximately BGN960 million) as debt because of
their short maturity, mostly amortizing terms, and the absence of
an option to defer interest.  Nevertheless, S&P recognizes that
they are provided by what it considers to be a supportive
strategic owner.

"We anticipate that NEK's Standard & Poor's-adjusted funds from
operations (FFO) to debt will be negative in 2013 and 2014.  That
said, we anticipate that from the second half of 2014, NEK will
be able to generate EBITDA margins of at least 3%-4%.  Although
this level is below the peer average, it should allow a recovery
of adjusted FFO to debt of more than 6%, which we see as
commensurate with NEK's 'b-' stand-alone credit profile (SACP).
NEK's management expects additional support to cover past losses
from a dedicated carbon emission auction fund.  However, this is
not certain and therefore, we do not include it in our base
case," S&P said.

In line with S&P's criteria, NEK's credit profile is supported by
its view of its status within the BEH group as "strategically
important."  This reflects that NEK is a fully controlled,
strategic subsidiary within the BEH group.  At the same time, S&P
understands that NEK retains its own identity, management,
financing, and operational independence.  S&P believes its 'bb-'
group credit profile for BEH reflects the likelihood that it will
benefit from state support, a stronger business risk position,
and diversified holdings in the energy sector.  In addition, S&P
views BEH's financial risk profile and flexibility as stronger
than NEK's.  That said, this has diminished following BEH's
recent issuance of a EUR500 million bond and the financial
underperformance of some of its subsidiaries.

S&P's assessment of NEK's 'b-' SACP is based on its view of its
"weak" business risk profile and the company's "highly leveraged"
financial risk profile.  S&P assess NEK's management and
governance as "weak" due to its aggressive liquidity management,
frequent management turnover, and weak reporting disclosures.

"Our view of NEK's "weak" business risk profile reflects the
company's meager profitability and the regulatory uncertainty of
annual tariff resets by Bulgaria's State Energy and Water
Regulatory Commission.  Our assessment of NEK's business risk
profile also factors in uncertainty related to the Belene nuclear
power plant project, which we understand is on hold.  Any
commitment to commence construction, particularly without any
direct government support, could alter our view of the company's
business and financial risk profiles.  These negative factors are
partly mitigated by NEK's dominant market position; its strategic
importance as provider of an essential public service; and its
ownership of almost all of the low-cost hydro generation assets
in Bulgaria.  Our view of NEK's financial risk profile as "highly
leveraged" reflects its weak credit metrics, and our view of its
liquidity position as "less than adequate," under our criteria,
and its financial policies as aggressive," S&P said.

The negative outlook reflects the uncertainty as to whether BEH
will continue its strong financial commitment and capacity to
support NEK for the foreseeable future.  Furthermore, it reflects
the possibility of further deterioration of NEK's SACP if it is
not able to return to positive profit margins by the end of 2014.

In accordance with S&P's group rating methodology, a one-notch
downward revision of NEK's SACP would not change the long-term
corporate credit rating on NEK, all else being equal.  However,
if S&P observes any evidence that BEH's willingness to extend
financial support to NEK is weakening, or it sees a deterioration
of the link between BEH and NEK, it could consider revising its
view of NEK's group status, which could lead to a lower rating.
Furthermore, if S&P sees BEH's ability to support NEK dwindling,
it could revise downward its view of the group credit profile,
which could also trigger a downgrade.

S&P could revise the outlook to stable if it believes that NEK's
financial risk profile has stabilized.  Full and timely pass-
through of costs and a fair return on assets will be important
for NEK to maintain its current assessment of its business risk
profile and, ultimately, the ratings.  In particular, this will
depend on NEK's ability to reach and maintain adjusted FFO to
debt of more than 6% on a sustainable basis, alongside more
conservative liquidity management.



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F I N L A N D
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FIRST QUANTUM: S&P Raises Rating on $350MM Unsecured Notes to B+
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it raised its rating
on the $350 million senior unsecured notes issued by Canada-
listed base metals group First Quantum Minerals Ltd. (FQM) to
'B+' from 'B' and removed it from CreditWatch, where it was
placed with positive implications on Feb. 4, 2014.

At the same time, S&P affirmed its 'B+' long-term corporate
credit ratings on FQM.  The outlook is stable.

In addition, S&P assigned its 'B+' issue rating to the
$2.2 billion senior unsecured notes issued by FQM.

S&P withdrew its 'B+' long-term corporate credit rating on FQM's
subsidiary, Toronto-based mining company FQM (Akubra) Inc.
(Akubra; formerly Inmet Mining Corp.).  S&P also withdrew the
'B+' rating on the $2.0 billion senior unsecured notes issued by
Akubra, which have been exchanged for the new $2.2 billion notes.

The rating actions follow FQM's recent changes to the group's
capital structure, after which its debt sits at the parent
company.  In S&P's view, the new capital structure improves the
standing of the various creditors, in particular the holders of
the $350 million unsecured notes, which now rank pari passu with
the other debt at the parent level.  The overall amount of
outstanding debt remains fairly similar.  As this stage, the key
rating factor for FQM remains its ambitious capital expenditure
(capex) program and relatively low current copper prices.

Specific changes to the capital structure include:

   -- Establishing a $2.5 billion five-year senior credit
      facility to replace the current revolving credit facility
     (RCF) at Akubra.  S&P had previously assumed that the
      current RCF would be refinanced.

   -- Exchanging the previous senior unsecured notes at the
      Akubra level -- $1.5 billion notes due 2020 and
      $500 million notes due 2021 -- with $2.2 billion long-term
      senior unsecured facilities at the FQM level.

   -- Cancelling the financing of the Kevitsa project in Finland
      and downsizing the $1 billion facility at FQM's Zambian
      subsidiary Kansanshi.

   -- Changing the covenant package and streamlining the security
      package across all senior unsecured notes at the FQM level.

Under S&P's base-case credit scenario, it projects that FQM's
EBITDA will improve to about $1.8 billion in 2014 and 2015,
compared with its forecast of $1.6 billion in 2013.  This
scenario takes into account the following estimates and
assumptions:

   -- Copper price of $3.1 per pound (/lb) in 2014.  The average
      price in 2013 was $3.3/lb and the current price is $3.2/lb.

   -- Gold price of $1,250 per ounce (/oz) in 2014.  The average
      price in 2013 was $1,400/oz and the current price is
      $1,270/oz.

   -- Copper production of 480,000-500,000 metric tons in 2014,
      slightly above production in 2013 (including Inmet Mining's
      production for the whole year).  S&P expects production to
      increase materially in 2015, as FQM commissions the
      Sentinel project in Zambia in late 2014.  However, S&P's
      projection of copper production in 2015 is lower than it
      previously assumed.  This is because the company lacks
      enough smelting capacity in Zambia, which is causing some
      changes in the commissioning of some projects.

S&P expects these estimates and assumptions to translate into
funds from operations (FFO) of about $1.0 billion-$1.1 billion
per year in 2014-2015.  At the same time, S&P expects FQM's capex
to peak, with investments of more than $4.0 billion until the end
of 2015.  S&P therefore forecasts significant negative free
operating cash flow (FOCF) of about $2.5 billion after factoring
in the dividends and a debt increase of about $2.7 billion by the
end of 2015.

At this stage, S&P considers a key risk in its rating to be
execution risk related to the Cobre Panama mine in Panama,
particularly the risk of cost overruns.  FQM recently
communicated the results of a review of the mine, which indicated
higher capex and a longer period until commissioning than Inmet
Mining had previously assumed.  However, FQM's assumption for
higher production should offset these extra costs.  The Cobre
Panama mine should improve FQM's portfolio and geographical
diversification once it is commissioned in late 2017.

S&P's view of FQM's "fair" business risk profile, as its criteria
define the term, reflects the group's adequate geographic
footprint and favorable position on the global unit cash cost
curve.  Although S&P views positively the significant growth
potential from FQM's capex program, notably the greenfield copper
project in Panama, S&P considers such sizable investments to have
significant execution risk.

S&P's assessment of the group's financial risk profile as
"aggressive" is based on its forecast of sizable negative FOCF in
the next years, with adjusted debt to EBITDA of about 3.0x and
adjusted FFO to debt of about 20% by 2015.  In S&P's view, FQM's
credit metrics will remain very sensitive to changes in the capex
programs and copper prices.  In the near term, the negative FOCF
is supported by the group's "adequate" liquidity.

The stable outlook reflects the group's "adequate" liquidity,
following the recently agreed $2.5 billion five-year senior
credit facility.  S&P also assumes that FQM will be able to
execute its various ongoing expansion projects (including the
expansion of the Kansanshi mine and ramp-up of the Sentinel mine)
according to plan, bringing group copper production to about
600,000-620,000 metric tons in 2015.  While FQM maintains
negative FOCF, S&P considers adjusted FFO to debt of about 20% to
be commensurate with the current rating.

S&P might consider a negative rating action if FQM faced a more
severe drop in copper prices or cost overruns on its key
projects. In addition, pressure on the rating could be triggered
by a revision of S&P's assessment of country risk in Zambia,
which accounts for about 50% of FQM's EBITDA (although the 'B+'
rating on Zambia does not constrain the rating on FQM).

A positive rating action in the medium term would require the
successful commissioning of FQM's key projects in Zambia.  It
would also hinge on FQM demonstrating sound management of the
Cobre Panama mine development, including by maintaining
"adequate" liquidity to mitigate FQM's significant negative free
cash flow over the mine's growth phase.



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F R A N C E
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LASER COFINOGA: Moody's Affirms 'Ba2' Rating; Outlook Stable
------------------------------------------------------------
Moody's Investors Service changed the outlook to stable from
negative on all LaSer Cofinoga's long-term ratings. Concurrently,
Moody's has affirmed LaSer Cofinoga's baseline credit assessment
(BCA) at ba2, its long-term senior unsecured and bank deposits
ratings at Baa2, its subordinated debt rating at Baa3 and its
short-term rating at Prime-2.

The change in outlook reflects (1) LaSer Cofinoga's improved
franchise and earnings stability, having moved away from its
former volume-driven, higher-risk model; (2) improved
geographical diversification; and (3) improvements in asset
quality, although legacy impaired loans remain high.

The affirmation of the BCA reflects Moody's view that it
appropriately reflects the institution's niche franchise as a
specialized consumer lender, which results in a high risk profile
for its loan exposures. It also reflects our view that LaSer
Cofinoga, along with other consumer lenders, faces the challenges
of operating in an increasingly difficult operating and
regulatory environment. The BCA is however supported by the on-
going support from its 50% parent BNPP, as well as from the
benefits from being a regulated institution. The affirmation of
the long-term ratings reflects Moody's view that BNP Paribas, its
50% shareholder, will continue to provide support in case of
stress.

The rating for preferred stock issued by Cofinoga Funding Two
L.P. was also affirmed at Ba2(hyb), and the outlook was changed
to stable (from negative).

Ratings Rationale

Successful Shift in Strategy is Positive for Firm's Franchise
and Earnings Stability

The change of outlook to stable reflects Moody's view that LaSer
Cofinoga is now in a better position to withstand economic and
regulatory headwinds because it has successfully implemented its
new strategy. In H1 2013, LaSer Cofinoga returned to net profit
(EUR45 million), after reporting net losses for two consecutive
years (FY 2012: EUR -114 million; FY 2011: EUR -167 million).

This reflects the positive impact of the firm's strategic
decision to move to a lower-risk appetite business model, from
the former volume-driven, higher-risk model that prevailed until
the crisis. The entity has also swiftly reduced operating
expenses, especially personnel and IT expenses, and simplified
its organizational structure. In doing so, Moody's says that
LaSer Cofinoga is successfully adjusting to an environment in
which its revenues are under pressure as a result of lower
household consumption, and from more stringent regulation on
consumer lending, especially in France. In H1 2013, the entity
reported that its operating expenses were cut by 6.9% compared to
H1 2012 (on a like-for-like basis), notably through a reduction
of headcount (full-time equivalents, FTEs) down 18% in France and
12% in the rest of Europe over the period) and tighter control of
other operating expenses.

Improved Geographical Diversification

In addition, LaSer Cofinoga has also achieved higher geographical
diversification especially in the UK and the Nordics (foreign
activities accounted for 33% of gross loans and 42% of the
group's revenues at end-June 2013).

Provided lending growth in these markets is not excessive,
greater geographical diversification has positive credit
implications, as (1) it enables LaSer Cofinoga to lower its
dependence on the French consumer market, which faces the
combined effect of a sluggish economy and increasingly tighter
regulation; and (2) these markets also provide the institution
with new business opportunities.

Asset Quality is Improving; But Legacy Impaired Loans Remain
High Compared to Existing Provisions and Capital Buffers

Asset quality, which had significantly deteriorated following the
onset of the crisis and was the main driver for the negative
outlook, has steadily improved in the last couple of years. The
improvement in the institution's cost of credit in H1 2013 was
structural as it reflects the focus on less risky customers, the
growing share of amortizing loans at the expense of revolving
loans which are less attractive given the current economic
downturn and tighter regulation. In H1 2013, the cost of credit
risk amounted to 2.1% of average outstanding loans (net of
release of provisions for loss of future margin reported by the
bank as revenues), a figure which has significantly improved from
prior levels (2012: 2.4%; 2011: 5.4%; 2010: 4.2%).

The entity has also reduced its stock of impaired loans, which
were down to EUR1.9 billion at end-June 2013 (19% of gross
loans), from EUR2.5 billion at end-2010 (21%). As a result of the
large one-off provisioning levels in 2011-12, the coverage ratio
of impaired loans now stands at 66%, up from 61% at end-2010.
However, Moody's believes it will take additional time for the
entity to collect and/or write-down a large stock of impaired
legacy exposures, which accounted for 73% of existing provisions
and shareholders' equity. At end-June 2013, the firm reported a
Tier 1 capital of EUR802 million (estimated Tier 1 ratio of
9.5%).

Support Assumptions Unaffected by Future Change in Ownership

Following the exercise by Galeries Lafayettes of a put option on
its 50% stake in LaSer Cofinoga, BNP Paribas will become its sole
shareholder. In all likelihood, the change in ownership structure
will be credit neutral for LaSer Cofinoga's ratings.

BNP Paribas already exerts significant influence over LaSer
Cofinoga's risk-management and business strategy and is strongly
committed to the company, in Moody's view. This is highlighted by
the ongoing liquidity support (of EUR6.1 billion of interbank
funding at end-June 2013). As a result, LaSer Cofinoga's Baa2
long-term deposit and debt ratings currently incorporate three
notches of support.

What Could Move The Rating -- Up/Down

Upward pressure on LaSer Cofinoga's BCA could materialize
following a material reduction in the risk profile, stronger
diversification of its activities, and continued improvement in
profitability and asset quality. In addition, Moody's says that
LaSer Cofinoga's standalone BCA could benefit from a further
integration in the BNP Paribas group, supporting the firm's
franchise and risk-management framework. Moody's would expect
that the BNP Paribas group will communicate on its strategy with
regards integration, after the transaction completes. LaSer
Cofinoga's long-term ratings benefit from a very high probability
of parental support from BNPP, which Moody's believes will be
unchanged, post-transaction.

Downwards pressure on LaSer Cofinoga's standalone BCA could
result from (1) a weakening franchise or risk positioning as a
result of a further deterioration in the macroeconomic outlook,
or competitive or regulatory pressure; (2) failure to adapt its
business activity to the persistently weak macroeconomic
environment; or (3) any material reduction in BNPP's anticipated
funding commitment to LaSer Cofinoga. In addition, a failure by
both shareholders to reach swift agreement on the sale of the
Galeries Lafayette group's stake in LaSer Cofinoga to BNPP would
likely, in the interim, negatively affect the firm's strategic
directions and franchise. This could ultimately exert pressure on
its overall financial strength.

LaSer Cofinoga's debt and deposit ratings may be negatively
affected by deterioration in the issuer's standalone BCA, or by a
change in Moody's perception of LaSer Cofinoga's strategic
importance to BNPP. Similarly, a deterioration of BNPP's own
standalone BCA would also exert pressure on LaSer Cofinoga's debt
and deposit ratings.

List of Affected Ratings

LaSer Cofinoga

The following ratings were affirmed and outlook changed to stable
from negative:

Senior unsecured and long-term deposits ratings of Baa2

Senior unsecured MTN rating of (P)Baa2

Subordinated debt rating of Baa3

Subordinated MTN rating of (P)Baa3

The following ratings were affirmed:

Baseline credit assessment of ba2

Adjusted baseline credit assessment of baa2

Short-term bank deposits of Prime-2

Short-term deposit note/CD program of Prime-2

Cofinoga Funding Two L.P.

The following rating was affirmed and outlook changed to stable
from negative:

Preference stock non cumulative of Ba2 (hyb)

Principal Methodology

The principal methodology used in these ratings was Finance
Company Global Rating Methodology published in March 2012.



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G E R M A N Y
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KUKA AG: Moody's Changes Outlook to Positive & Affirms 'Ba3' CFR
----------------------------------------------------------------
Moody's Investors Service has changed the outlook of KUKA AG to
positive from stable and affirmed its Ba3 corporate family rating
(CFR), Ba3-PD probability of default rating (PDR) and Ba3 senior
notes rating.

Ratings Rationale

"The rating action reflects our expectation that over next 12-18
months KUKA will be able to maintain solid operating performance,
underpinned by a healthy capital structure and liquidity profile,
which will position KUKA strongly in the Ba3 rating category,"
says Martin Fujerik, Moody's lead analyst for KUKA.

Moody's considers that underlying market conditions in the
automotive industry remain positive in the foreseeable future,
given that light vehicle production in emerging markets is
expected to grow further and the ongoing trend towards automated
work processes in automobile production is likely to continue,
which should benefit KUKA. Furthermore, the group is developing
business opportunities with other sectors such as the aerospace,
healthcare and logistics, which should help reduce its reliance
on the automotive industry.

Overall, Moody's expects that revenues will be broadly stable in
the next 12-18 months, with margins unlikely to improve
materially further (reported EBIT margin of 6.8% in 2013),
reflecting the very price-competitive nature of KUKA's business.
In addition, the free cash flow generated in 2013 benefitted from
sizeable working capital release, which is very unlikely to be
repeated to the same extent in the current financial year.
However, Moody's believes that KUKA will continue to generate
free cash flow in the foreseeable future, although working
capital movements are very difficult to predict. Moody's also
notes that there is a dividend protection threshold in the
convertible bond documentation at EUR0.50 per share for the FYs
2014-16, which the rating agency sees as a dividend limiting
guideline. Additionally, acquisition opportunities that would fit
KUKA's business profile and scale are scarce in an already fairly
consolidated industry. These factors should enable KUKA to
maintain its healthy liquidity profile and capital structure,
with RCF/net debt as adjusted by Moody's remaining above 100% in
the horizon of 12-18 months (115% for last-12-months to September
2013), which is an important factor offsetting KUKA's high
business risk.

Moody's also notes that in the course of 2013, KUKA issued around
EUR150 million of convertible bonds with an interest rate of
around 2%, the proceeds of which KUKA might consider to apply to
the repayment of its high yield bond in November 2014 (around
EUR170 million outstanding as of September 2013), when a call
option can be exercised. This repayment would not only reduce
KUKA's refinancing risk and improve its maturity profile and
leverage, but would also improve the company's interest cover
metrics starting in 2015, as its interest expense will
significantly decrease.

The key risk to KUKA's ratings remains its vulnerability to the
inherent cyclicality of the automotive industry. This can cause
volatility of operating profits and cash flow through the
economic cycle, and requires the maintenance of a sizeable
liquidity cushion in order to cope with cyclical downturns. In
addition, the group will need to maintain tight control over cost
efficiency and working capital in a competitive environment. The
Ba3 CFR also remains constrained by KUKA's small size, high level
of customer concentration, limited diversification both in terms
of industry as well as geography, and strong competition in its
markets, with competitors such as ABB Ltd. (A2, stable).

More positively, the Ba3 rating is supported by KUKA's strong
competitive position in its relevant markets with, according to
the company, a market-leading position in robotics for the
automotive industry worldwide and a no. 2 position in systems
(body-in-white) in Europe and the US, which KUKA has been able to
protect over time. The rating also reflects KUKA's high level of
innovation and technology leadership as well as its long-standing
customer relationships. The rating is further supported by the
company's strong capital structure and liquidity profile, with
very ample covenant headroom.

What Could Change The Rating Up/Down

An upgrade could be considered if KUKA was able to further
diversify its business as well as if KUKA further improved its
cost structure and maintained a conservative financial policy, as
exemplified by (1) EBITA margins maintained around 8% (7.7% in
last-12-months to September 2013); (2) sustained positive FCF
generation; and (3) debt/EBITDA maintained below 2.5x (3.3x in
last-12-months to September 2013 and 2.3x pro-forma for the high-
yield bond being repaid). In addition, a Ba2 rating would require
to sustainably maintain a solid liquidity cushion to offset the
inherent volatility of the business.

Moody's could downgrade the ratings if the company's gross
leverage sustainably increases above 3.0x. In addition, negative
rating pressure could result if (1) KUKA's profitability
deteriorates below 6%, with negative FCF for a prolonged period
of time; (2) the company's short-term liquidity deteriorates; or
(3) it takes a more aggressive approach with regard to
shareholder distribution or debt-financed growth.

Principal Methodology

The principal methodology used in this rating was the Global
Heavy Manufacturing Rating Methodology published in November
2009. Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

Headquartered in Augsburg, Germany, KUKA AG focuses on robot-
supported automation of manufacturing processes and is active in
the mechanical and plant engineering sector. The company operates
under two divisions: KUKA Robotics (approximately 40% of group
revenues) and KUKA Systems (approximately 60% of group revenues).
In 2013, KUKA generated revenues of around EUR1.8 billion. KUKA
is publicly listed, with Grenzebach Maschinenbau GmbH, Germany,
being its largest shareholder, with an around 20% stake.


SAFARI HOLDING: S&P Assigns 'B' LT Corp. Credit Rating
------------------------------------------------------
Standard & Poor's Ratings Services said it had assigned its 'B'
long-term corporate credit rating to Safari Holding GmbH, the
owner of the German gaming company Lowen Play GmbH.  The outlook
is stable.

At the same time, S&P assigned its 'B' long-term issue rating to
the EUR235 million senior secured notes due 2021 issued by Safari
Holding Verwaltungs GmbH.  The recovery rating on the notes is
'4', indicating S&P's expectation of average (30%-50%) recovery
in the event of a payment default.

The rating on Safari Holding reflects Moody's view of Lowen
Play's "weak" business risk profile and "aggressive" financial
risk profile, as S&P's criteria define these terms.

Lowen Play is among the largest operators of gaming arcades in
Germany.  Within its 316 arcades, Lowen Play currently offers
about 8,500 coin-operated electronic gaming machines.

Lowen Play's "weak" business risk profile reflects the company's
earnings concentration on German gaming arcades, which face
significant regulatory risk.  Because Lowen Play is not present
in other gaming products, it is particularly vulnerable to
regulatory changes: The Interstate Treaty on Games of Chance
("Erster Glucksspielanderungsstaatsvertrag -- Erster GluandStV"),
which restricts the number of gaming machines per arcade, was
passed in July 2012, and has been effective in all 16 German
states since Feb. 9, 2013.  Compliance with this treaty may force
Lowen Play and other operators to shut down a substantial share
of their arcades and dramatically reduce the number of gaming
machines. However, existing gaming arcades are protected against
complying with most of the new provisions until July 1, 2017, and
S&P anticipates Lowen Play's operations will be somewhat stable
until then.

S&P's business risk assessment also incorporates the risk of
increasing amusement taxes and changing consumer trends.  German
municipalities have periodically raised taxes in the past and S&P
expects this will continue.  Lowen Play's offer is limited to
gaming machines and is therefore exposed to competing offers, in
particular to online gaming, in our view.

These risks are partly moderated by the company's above-average
profitability and healthy free cash flow generation.  Under S&P's
base-case scenario, it estimates that the cumulative free cash
flow available for debt repayment between 2014 and 2017 should
add up to about EUR100 million.

S&P's base case assumes:

   -- About 1%-2% average annual revenue growth until 2017.

   -- The reported EBITDA margin to stay above 40% (Standard &
      Poor's adjusted above 50%).

   -- Fairly limited additional working capital requirements.

   -- Capital expenditures of about EUR5 million per year.

   -- Finance lease commitments of about EUR30 million and about
      EUR105 million in operating leases, which S&P adds to debt.

Based on these assumptions, S&P arrives at the following credit
measures for 2014 to 2015:

   -- Funds from operations (FFO) to debt of about 17%-20%.

   -- Adjusted debt to EBITDA of 3.3x-3.6x.

   -- Adjusted EBITDA interest coverage of about 3.8x-4.0x.

Importantly, S&P estimates that the expected drop in EBITDA and
cash flow resulting from the lower number of arcades and machines
is likely to significantly weaken the company's credit metrics
after 2017.  As a result, S&P considers Safari's credit standing
to be weaker than that of similarly rated peers.  For this
reason, S&P applies a one-notch downward adjustment to the
rating, reflecting our comparable rating analysis.

At the same time, S&P notes that until the regulatory changes
take effect, it estimates that Lowen Play will likely generate
cumulative free cash flow between 2014 and 2017 of about EUR100
million.  In light of the company's financial-sponsor ownership
S&P has not netted any cash against gross debt.  However, S&P
notes that the documentation includes dividend restrictions and a
mandatory annual amortization offer to repurchase up to 10% of
the initially issued aggregate principal amount of the notes
(subject to minimum cash requirement of EUR30 million).

S&P views the releveraging of the company as aggressive, however,
given the current regulatory uncertainty.

The stable outlook reflects S&P's view that in the short term,
the company's operations will not be affected by the new
regulation. S&P anticipates 2014 revenues to increase by about
1%-2%, broadly in line with its forecast 1.8% GDP growth for
Germany.  Adjusted EBITDA margins should remain at about 50% over
2014, translating into adjusted EBITDA interest cover of more
than 3.0x.


TELDAFAX: Former Executives Face Charges Over Delayed Insolvency
----------------------------------------------------------------
Deutsche Welle reports that the state court in Bonn announced
ahead of opening the trial on Tuesday of Teldafax's former senior
executives Klaus Bath, Gernot Koch and Michael Josten were facing
charges of delayed filing of insolvency, unlawful bookkeeping and
organized fraud to cover up a bankruptcy.

The charges were based on allegations that the Teldafax managers
concealed evidence in 2009 of the company's bankruptcy,
continuing the business until 2011 to the detriment of its
customers, Deutsche Welle discloses.

In 2011, Teldafax, Germany's biggest independent utility at the
time, eventually filed for insolvency, leaving roughly 700,000 of
its customers in a bind, Deutsche Welle relates.  The company had
offered cheap gas and electricity, but required customers to pay
their annual bills in advance, Deutsche Welle relays.  Moreover,
accusations had surfaced about shoddy accounting practices and
running a business that could only stay afloat by rapidly
attracting new customers, Deutsche Welle notes.

According to Deutsche Welle, the court-appointed Teldafax
insolvency administrator said that customers held claims totaling
EUR500 million (US$685 million) against the company at the time
of the bankruptcy.

Teldafax is a German utilities discounter.



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


ELVERYS SPORTS: Several Investors Express Interest
--------------------------------------------------
Ann O'Loughlin at Irish Examiner reports that several investors
have expressed interest in the Elverys Sports operating company.

The High Court was told on Tuesday as it confirmed an examiner
had been appointed to the company, Irish Examiner relates.

According to Irish Examiner, Mr. Justice Brian McGovern said he
was satisfied to confirm Simon Coyle of Mazars as examiner and
would continue court protection to allow for preparation of a
survival scheme for Staunton Sports.

The National Asset Management Agency (NAMA) will continue
supporting Staunton Sports during the period of court protection
when rival bids for the company will be assessed, Irish Examiner
says.

NAMA is the company's largest secured creditor, owed some
EUR23 million, after acquiring its AIB loans in 2010 and 2011,
Irish Examiner notes.

Rossa Fanning, the company's counsel, said the expressions of
interest did not involve seven different entities but did include
interest from two large accountancy firms and one large law firm
on behalf of different clients, Irish Examiner relays.

Elverys Sports is a sports store in Ireland.  The company employs
654 people in 56 stores nationwide.


MAGI FUNDING I: Moody's Hikes Rating on EUR11.8MM Notes to 'Ba2'
----------------------------------------------------------------
Moody's Investors Service has taken rating actions on the
following notes issued by Magi Funding I plc:

EUR212,600,000 Class A Floating Rate Notes due 2021, Affirmed
Aaa(sf); previously on Aug 31, 2011 Upgraded to Aaa(sf)

EUR33,800,000 Class B Deferrable Floating Rate Notes due 2021,
Confirmed at A2(sf); previously on Nov 14, 2013 Upgraded to
A2(sf) and Placed Under Review for Possible Upgrade

EUR7,500,000 Class C Deferrable Floating Rate Notes due 2021,
Affirmed Baa3(sf); previously on Aug 31, 2011 Upgraded to
Baa3(sf)

EUR11,760,000 Subordinated Notes II A due 2021, Upgraded to
Ba2(sf); previously on Aug 31, 2011 Upgraded to Ba3(sf)

Magi Funding I plc, closed in February 2006, is a collateralized
loan obligation (CLO) backed by a portfolio of mostly high-yield
senior secured European loans. The portfolio is managed by
Henderson Global Investors Ltd. The transaction's reinvestment
period ended in April 2012.

Ratings Rationale

The rating confirmation on Class B primarily reflects improvement
in the over-collateralization ratios which offsets the
deterioration in the credit quality of the asset pool observed
through a higher average credit rating of the portfolio (as
measured by the weighted average rating factor, or WARF) and an
increase in the proportion of securities from issuers rated Caa1
and below. Moody's had previously upgraded the rating of Class B
to A2(sf) from A3(sf) on November 14, 2013 and left it on review
for upgrade due to significant loan prepayments. The action
conclude the rating review of the transaction.

As of the trustee's report dated January 10, 2014, the Class B
now has an over-collateralization ratio of 124.57%, compared with
114.24% twelve months ago.

The upgrade of the rating of the Subordinated Notes II A is also
driven by the deleveraging of the transaction. Subordinated Notes
II A have amortized approximately 59% since closing. These notes
benefit from a diversion mechanism which accelerate the
redemption of the notes upon breach of a diversion test, which is
based on the notes' over-collateralization.

The credit quality of the underlying collateral pool has
deteriorated as reflected in the deterioration in the WARF and an
increase in the proportion of securities from issuers with
ratings of Caa1 or lower. As of the trustee's report dated 10
January 2014, the WARF was 2991 compared with 2855 twelve months
ago. Securities with ratings of Caa1 or lower currently make up
approximately 21.5% of the underlying performing portfolio,
versus 9.7% twelve months ago.

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 EUR150.1
million, defaulted par of EUR5 million, a weighted average
default probability of 27.2% (consistent with a WARF of 3768), a
weighted average recovery rate upon default of 49% for a Aaa
liability target rating, a diversity score of 21 and a weighted
average spread (WAS) of 4%.

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% on the 97.2% of the
portfolio exposed to first-lien senior secured corporate assets
upon default and of 15% on 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, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed lower credit quality in the portfolio to
address refinancing risk. Loans to European corporates rated B3
or lower and maturing between 2014 and 2015 make up approximately
4.6% of the portfolio, which could make refinancing difficult.
Moody's ran a model scenario in which it raised the base case
WARF to 3847 by forcing ratings on 25% of the refinancing
exposures to Ca; the model generated outputs that were within one
notch of the base-case results.

Moody's also ran a model scenario in which it lowered the base
case WAS to 3.7%; the model generated outputs that were in line
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 exposure to 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:

1) Exposure to credit estimates: The deal contains a large number
of securities whose default probabilities Moody's has assessed
through credit estimates. If Moody's does not receive the
necessary information to update the credit estimates in a timely
fashion, the transaction could be affected by any default
probability stresses Moody's assumes in lieu of updated credit
estimates.

2) 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.

3) 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.

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.


SIAC CONSTRUCTION: GDDKiA Appeals Rescue Plan Approval
------------------------------------------------------
Mary Carolan and Barry O'Halloran at The Irish Times report that
Siac Construction has said it intends to continue trading
normally pending the outcome of a last-minute appeal that
threatens to overturn a High Court-approved rescue plan for the
business.

Mr. Justice Peter Kelly last week gave the go-ahead to the plan
under which a group of investors -- including Siac's owners, the
Feighery family -- agreed to put EUR10.5 million into the group,
The Irish Times relates.  The firm sought court protection from
its l,255 creditors, which it owed close to EUR70 million, last
October, The Irish Times recounts.

However, the Supreme Court heard on Tuesday that GDDKiA, the
Polish roads authority, which Siac itself is suing for EUR120
million, has launched a last-minute appeal against Justice
Kelly's decision, claiming its rights as a creditor have been
unfairly prejudiced, The Irish Times relays.

The Chief Justice, as cited by The Irish Times, said the court
would hold a priority hearing next week of the appeal by the
Polish agency, which claims it is owed some EUR70 million by
Siac companies, against the High Court's approval of the scheme.

The scheme, due to come into operation on Feb. 18, has been
deferred until Tuesday, Feb. 25, when a three-judge Supreme Court
will hear the appeal.

SIAC Construction is an Irish building engineering company.



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


RHINO BONDCO: S&P Assigns 'B' LT Corp. Credit Rating
----------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating to Rhino Bondco SpA, the parent company
of Italy-incorporated distributor of components for private and
commercial vehicles Rhiag Inter Auto Parts Italia SpA
(collectively Rhiag, or the group).  The outlook is stable.

At the same time, S&P assigned its 'B' issue rating to Rhiag's
EUR415 million senior secured notes, including a EUR215 million
fixed-rate tranche and EUR200 million floating-rate tranche, due
2020 issued by Rhino Bondco SpA.  The recovery rating on these
notes is '4', indicating S&P's expectation of average recovery
(30%-50%) for noteholders in the event of a payment default.

The ratings on Rhiag reflect S&P's view of its aggressive capital
structure following the leveraged buyout by funds advised by
private equity company Apax Partners.  The buyout was announced
on Oct. 9, 2013, and completed on Dec. 16, 2013.  The ratings on
Rhiag are at the same level as the preliminary ratings S&P
assigned on Oct. 25, 2013, mainly reflecting its view of its
financial risk profile, which remains broadly unchanged under its
final capital structure.

"We assess Rhiag's financial risk profile as "highly leveraged"
under our criteria. Based on the capital structure after the
buyout, we estimate Rhiag's ratio of adjusted debt to EBITDA will
be higher than 5x. Rhiag's adjusted debt includes EUR415 million
of senior secured notes that it issued in conjunction with the
leveraged buyout by Apax.  In addition, it has a super senior
revolving credit facility (RCF) of EUR75 million, maturing in
2019.  The adjustments we include in our debt calculations add
another EUR50 million to Rhiag's debt (mostly related to
operating lease commitments).  The main constraints on our
ratings on Rhiag are our views of its "highly leveraged"
financial profile and its "aggressive" financial policy," S&P
said.

The stable outlook reflects S&P's forecast that Rhiag will
maintain resilient earnings in 2014 and 2015, despite economic
headwinds in Europe.  This should enable the group to maintain
rating-commensurate credit metrics, such as EBITDA interest
coverage above 2x and FFO to debt of about 10%.  S&P factors in
its assumption that the group will maintain its sound operating
performance in its core Italian market, despite the difficult
economic outlook.  In addition, S&P anticipates that Rhiag will
effectively control capital expenditure and working capital
levels, despite targeted expansionary growth, and thus continue
to generate FOCF over the coming years.



===================
K A Z A K H S T A N
===================


ALLIANCE BANK: Moody's Lowers Sr. Unsecured Debt Rating to 'C'
--------------------------------------------------------------
Moody's Investors Service has downgraded Kazakhstan's Alliance
Bank's long-term local and foreign-currency senior unsecured debt
rating to C from Ca. Concurrently, Moody's affirmed the bank's E
standalone bank financial strength rating (BFSR) and lowered the
corresponding baseline credit assessment (BCA) to c from ca. The
rating agency also affirmed the bank's Caa2 long-term local and
foreign-currency deposit ratings, its Not Prime short-term
foreign-currency deposit rating, and C local-currency
subordinated debt rating.

The outlook on Alliance Bank's deposit ratings remains
developing, whilst the BFSR, senior unsecured and subordinated
debt ratings carry no outlook.

Moody's rating action is based on the pending debt restructuring
proposed by management in January 2014.

Ratings Rationale

Downgrade of Senior Unsecured Debt Rating

In January 2014, Alliance Bank's management announced that debt
restructuring and recapitalization will be required in order to
restore an estimated KZT152.7 billion (approximately US$0.8
billion) shortfall in the bank's capital. This shortfall has
arisen as a result of (1) the bank's already very low capital;
(2) a likely increase in loan loss reserves; and (3) a write-down
of part of the bank's deferred tax assets.

The proposed restructuring terms include a haircut of about 70%
on Alliance Bank's approximately KZT90 billion of senior
unsecured bonds. Whilst these terms have to be discussed and
approved by the bank's creditors and shareholders, Moody's
considers that there is a limited likelihood that the losses of
senior unsecured creditors would be substantially below the
proposed haircut. Therefore, C rating reflects the level of
likely losses for creditors more appropriately.

Deposit Ratings and Sytemic Support Assumptions

Moody's affirmation of Alliance Bank's Caa2 deposit ratings is
driven by the moderate systemic support assumption implied in
these ratings given the bank's government ownership and the
support that has been provided to the bank by the government and
state-controlled entities. As a result, Alliance Bank's Caa2
deposit ratings receive three-notches of uplift from its c BCA.
The rating agency understands that the bank may be privatized and
merged with Kazakhstan-based Temirbank after a successful debt
restructuring. In the event of a successful debt restructuring,
Moody's will review its systemic support assumptions in Alliance
Bank's deposit ratings based on the bank's market shares and
overall importance for the Kazakh banking system.

Developing Outlook on Deposit Ratings

The developing outlook on Alliance Bank's deposit ratings, which
indicates that these rating could either be downgraded or
upgraded over the next 12 to 18 months, reflect the high degree
of uncertainty about the bank's franchise prospects and its
ability to meet its obligations to depositors. This uncertainty
derives from (1) the bank's weakening credit profile
characterized by the lack of capital and liquidity cushion, as
well as loss-making operations; and (2) the final outcome of the
management's proposed debt restructuring, which could be either
debt relief and recapitalization or the bank's liquidation.

What Could Move The Ratings Up/Down

Alliance Bank's standalone and deposit ratings could be upgraded
if the bank successfully completes the announced debt
restructuring and restores it solvency and liquidity.

Alliance Bank's standalone and debt ratings are at the lowest
rating level and can't be further downgraded. Downwards pressure
might develop on the bank's deposit ratings if the announced
restructuring terms are not approved, leading to heavier losses
for the debt holders and depositors compared to the losses
currently anticipated by Moody's.

Principal Methodology

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

Headquartered in Almaty, Kazakhstan, Alliance Bank reported total
assets of US$3.8 billion and shareholders' equity of US$33
million, as of end-Q3 2013, according to the bank's unaudited
IFRS financial statements.


EURASIAN BANK: Moody's Affirms Low-B Ratings & 'E+' BFSR
--------------------------------------------------------
Moody's Investors Service has affirmed Eurasian Bank's following
ratings:

  B1 long-term local- and foreign currency deposit ratings,

  B1 senior unsecured debt rating,

  B2 subordinated debt rating,

  E+ standalone bank financial strength rating (BFSR),
  corresponding to b1 baseline credit assessment (BCA),

  Not Prime short-term foreign-currency deposit ratings.

The outlook on the deposit and debt ratings remains negative,
whilst the outlook on BFSR is stable.

Moody's assessment of Eurasian Bank's ratings is largely based on
its audited financial statements for 2012, unaudited financial
statements for Q3 2013, prepared under IFRS as well as
information received from the bank.

Ratings Rationale

The affirmation of Eurasian Bank's ratings with a negative
outlook is driven by the bank's satisfactory capitalization
supported by good profitability, but also its weakening asset
quality and thin liquidity cushion against the background of high
funding concentration.

Eurasian Bank's capital adequacy is satisfactory with an equity-
to-assets ratio stood of 9.8% at end-Q3 2013, slightly down from
10.2% at year-end 2012. The decline in the ratio was driven by a
rapid increase in the bank's retail loans (predominantly consumer
loans), which rose by 46% in the first nine months of 2013 and
accounted for 53.5% of the gross loans, according to Eurasian
Bank's IFRS report.

Eurasian Bank's capital adequacy continues to be supported by
good profitability owing to high-margin consumer lending. As of
end-Q3 2013 the bank reported an annualized return on average
assets (RoAA) of 2.3%. The bank's sound profitability and
relatively lower lending growth will likely help the bank
maintain its capital adequacy at acceptable levels over the next
12 to 18 months.

Eurasian Bank reported a considerable increase in the level of
problem loans in its consumer loans portfolio during 2013.
Consumer loans (credit card, car loans and other secured and
unsecured consumer loans) overdue by over 90 days rose to 9.6% of
the portfolio at year-end 2013, from 5.5% at year-end 2012. As
consumer indebtedness in Kazakhstan grows and loans start to
season, the level of problem loans in this segment will likely
increase.

In pursuit of rapid lending growth, Eurasian Bank reduced its
liquidity cushion to about 18% of total assets as at Q3 2013
(year-end 2012: 20%). Given that the bank also maintained high
funding concentration (the nine largest depositors accounted for
28% of total customer funds as at end-Q3 2013, though a
significant portion of these funds is attracted from related
entities), its liquidity profile became more vulnerable to
adverse developments in the market.

What Could Move The Ratings Up/Down

Upward pressure on Eurasian Bank's ratings is limited. Positive
pressure could be exerted on the ratings if the bank strengthens
its capital base and liquidity, and demonstrates stabilization in
asset quality.

Eurasian Bank's ratings might be downgraded as a result of any of
the following: (1) growing pressure on its profitability caused,
in turn, by further asset quality erosion; and (2) further
deterioration in the bank's capitalization and liquidity.

Principal Methodology

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

Headquartered in Almaty, Kazakhstan, Eurasian Bank reported total
assets of KZT558.2 billion (US$3.63 billion), shareholders'
equity of KZT54.5 billion (US$354 million), and net income of
KZT8.7 billion (US$56.7 million), according to its unaudited IFRS
financial statements at end-Q3 2013.



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


NORTH WESTERLY: S&P Lowers Ratings on 2 Note Classes to 'CCC-'
--------------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions on all rated classes of notes in North Westerly CLO II
B.V.

Specifically, S&P has:

   -- Raised its ratings on the class A notes and the class Q
      combination notes;

   -- Affirmed its ratings on the class B-1 and B-2 notes and the
      class R combination notes; and

   -- Lowered its ratings on the class C, D-1, and D-2 notes.

The rating actions follow S&P's assessment of the transaction's
performance using data from the trustee report, dated Dec. 31,
2013.

North Westerly CLO II has been amortizing since the end of its
reinvestment period in September 2010.

"We have observed that EUR56.9 million of the class A notes have
paid down since our October 2012 rating action, which has
increased the credit enhancement for the class A notes.  At the
same time, the credit enhancement for other rated classes of
notes has decreased due to defaults in the portfolio.  Compared
with our last review, the percentage of defaulted assets has
increased to 11.56% from 1.05%.  We have also observed an
increase in the weighted-average spread to 3.84% from 3.38% over
this period.  The weighted-average life has reduced to 2.93 years
from 3.37 years," S&P said.

"We subjected the capital structure to a cash flow analysis to
determine the break-even default rate (BDR) for each rated class.
In our analysis, we used the portfolio balance that we consider
to be performing, the reported weighted-average spread, and the
weighted-average recovery rates according to "Update To Global
Methodologies And Assumptions For Corporate Cash Flow And
Synthetic CDOs," published on Sept. 17, 2009.  We incorporated
various cash flow stress scenarios using short default patterns
and levels for each liability rating category, in conjunction
with different interest stress scenarios," S&Padded.

In S&P's opinion, the credit enhancement available to the class A
notes is consistent with a higher rating than previously
assigned, taking into account its credit and cash flow analysis
and its current counterparty criteria.  S&P has therefore raised
its rating on the class A notes to 'AAA (sf)' from 'AA+ (sf)'.

S&P has affirmed its 'BBB+ (sf)' ratings on the class B-1 and B-2
notes and lowered its rating on the class C notes to 'B+ (sf)'
from 'BB+ (sf)', as S&P's ratings on these classes of notes were
constrained by the application of the largest obligor default
test, a supplemental stress test that S&P introduced in its 2009
criteria update for corporate collateralized debt obligations
(CDOs).

S&P has lowered its ratings on the class D-1 and D-2 notes to
'CCC- (sf)' from 'CCC+ (sf)', based on S&P's cash flow results.
These notes are currently highly vulnerable to the loss of
principal.

S&P has taken into account the reduced rated balance of the class
Q and R combination notes, as well as the effect of the largest
obligor test on the components of these combination notes.  As a
result, S&P has raised its rating on the class Q combination
notes to 'BBB+ (sf)' from 'BB+ (sf)' and has affirmed its 'A-
(sf)' rating on the class R notes.

North Westerly CLO II is a cash flow collateralized loan
obligation (CLO) transaction that securitizes loans to primarily
speculative-grade corporate firms.  The reinvestment period has
ended in September 2010 and the transaction is managed by NIBC
Bank N.V.

RATINGS LIST

Class             Rating
            To             From

North Westerly CLO II B.V.
EUR413.5 Million Secured Fixed- And Floating-Rate Deferrable
Interest And
Subordinated Notes

Ratings Raised

A           AAA (sf)       AA+ (sf)
Q (Comb)    BBB+ (sf)      BB+ (sf)

Ratings Affirmed

B-1         BBB+ (sf)
B-2         BBB+ (sf)
R (Comb)    A- (sf)

Ratings Lowered

C           B+ (sf)        BB+ (sf)
D-1         CCC- (sf)      CCC+ (sf)
D-2         CCC- (sf)      CCC+ (sf)

(Comb)-Combination.



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


STATIUNEA OCNA: EUR2.7 Million Debt Prompts Bankruptcy
------------------------------------------------------
Mirabela Tiron at Ziarul Financiar reports that Statiunea Ocna
company, which managed the Ocna Sibiului resort in the spa town
by the same name known for its salt waters, went bankrupt on
EUR7.2 million debt.

Its biggest creditor is Romania's largest bank BCR, Ziarul
Financiar notes.



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


GE MONEY: Moody's Cuts Deposit Ratings to B2; Outlook Negative
--------------------------------------------------------------
Moody's Investors Service has downgraded to B2 from Ba3 the long-
term local- and foreign-currency deposit ratings of Russia's GE
Money Bank CJSC. Moody's has also lowered the baseline credit
assessment (BCA) to b2 from b1. Concurrently, Moody's has
affirmed the short-term Not-Prime ratings as well as standalone
bank financial strength rating (BFSR) of E+, which is now
equivalent to a BCA of b2. The outlook on the long-term ratings
is negative while the outlook on the bank's standalone BFSR is
stable.

The downgrade of GE Money Bank CJSC's deposit ratings concludes
the review initiated on November 12, 2013 following the
announcement that its sole shareholder General Electric Capital
Corporation (GE Capital, A1 stable) had agreed to sell its entire
stake in GE Money Bank CJSC to Russia's Sovcombank (deposits B2
negative/Not-Prime, BFSR E+ stable/BCA b2). The transaction was
finalized on February 7, 2014 and Sovcombank became the sole
owner of GE Money Bank CJSC.

Moody's assessment is primarily based on information received
from GE Money Bank CJSC, public announcements by Sovcombank and
documents confirming the ownership transfer.

Ratings Rationale

Lowering of the BCA

The lowering of the BCA to b2 reflects negative pressure on GE
Money Bank CJSC's intrinsic strength caused by contingent risks
arising from its acquisition by Sovcombank. GE Money Bank CJSC's
BCA is now aligned with the weaker b2 BCA of the new owner. In
particular:

(1) Moody's notes that GE Money Bank CJSC's risk appetite could
increase and converge to that of Sovcombank as the latter will
control all GE Money Bank CJSC's risk functions.

(2) Moody's expects that GE Money Bank CJSC's regulatory capital
adequacy (N1 ratio) will decline to 12%-13% from 20% at year-end
2013, as the rating agency expects Sovcombank to operate GE Money
Bank CJSC at a significantly lower, than currently, capital
buffer. The reduction in capital will be achieved via planned
dividend payouts from GE Money Bank CJSC to Sovcombank.

(3) Moody's believes that GE Money Bank CJSC's good liquidity
profile could weaken, because its liquidity had been highly
dependent on significant committed credit lines from GE Capital
which ceased on completion of the Sovcombank transaction.

Downgrade of the Deposit Ratings

The downgrade of GE Money Bank CJSC's deposit ratings also
reflects elimination of the support elements (one notch uplift)
from GE Capital upon the completion of the Sovcombank
transaction. Given that Sovcombank's b2 BCA is now in line with
that of GE Money Bank CJSC, Moody's does not incorporate any
support uplift into GE Money Bank CJSC's ratings from the new
owner.

Negative Outlook

GE Money Bank CJSC's deposit ratings have a negative outlook, in
line with deposit ratings of its parent -- Sovcombank, reflecting
the contingent risks from the planned high level of integration
which will promote free capital and liquidity flows between the
two banks; this, in turn, converges the risk profiles of the two
banks.

The negative outlook on Sovcombank's deposit ratings reflects the
bank's high credit risk appetite, as demonstrated by its focus on
unsecured consumer lending and the rapid lending expansion in
this segment, which renders Sovcombank's asset quality vulnerable
to deterioration, in line with the general weakening trend in the
quality of retail portfolios of Russian banks.

What Could Move The Ratings Up/Down

In light of the negative outlook, GE Money Bank CJSC's deposit
ratings are unlikely to be upgraded in the next 12-18 months. The
deposit ratings could be downgraded, and b2 BCA could be lowered
if the parent's ratings are downgraded, or if GE Money Bank
CJSC's financial fundamentals substantially weaken going forward.

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

Domiciled in Moscow, Russia, GE Money Bank CJSC reported -- as at
year-end 2012 -- total IFRS (audited) assets of US$958 million
and total equity of US$299 million. The bank's net profit
amounted to US$29 million for 2012.



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


APPLEGUILD LIMITED: Goes Into Liquidation
-----------------------------------------
FT Adviser reports that a London-based company that sold colored
diamonds to the public as an investment but did not deliver them
was ordered into liquidation on January 29, on "grounds of public
interest" following an investigation by the Insolvency Service.

Appleguild Limited, which traded as Gold Standard Commodities,
falsely claimed to be an independent commodities broker based in
the City of London since 2007, according to FT Adviser.

However, the report relates that the Insolvency Service found the
company operated from August 2011, when the company registration
was bought "off-the-shelf" from a company formation agent, to
January 2012, when its activities were forcibly closed.

According to its now defunct UK website, the company claimed it
had been: "Advising clients on mainstream commodities which we
believe can hedge our clients against the difficulties that face
us in today's economy," the report notes.

However, the report relates that the Insolvency Service said
investigators were not able to establish the extent of the
company's business due to "lack of co-operation from the
company's officers responsible for this period of trading and
inadequate financial records".

The company's de facto director, Christopher Newhouse said 15
customers had placed orders for over GBP100,000 but only one
order was fulfilled, the Insolvency Service said, the report
discloses.

"This formally brings to an end the activities of a thoroughly
disreputable company which said it 'prided itself' on the
investment returns for its clients, but who, in all but one
instance, failed to supply investors with any diamonds.
Investors should not respond to cold-calling investment sharks as
they stand to gain nothing and risk losing everything," the
report quoted Chris Mayhew, company investigations supervisor at
the Insolvency Service, as saying.


BLUEPRINT PROPERTY: Forced Into Liquidation
-------------------------------------------
Chanice Henry at Bridging & Commercial Distributor reports that
as the turmoil in the conveyancing sector rages on, another firm
has been pushed into liquidation.

Blueprint Property Lawyers Limited had a compulsory order granted
against them at the Royal Courts of Justice, according to
Bridging & Commercial Distributor.

The conveyancing firm was wound-up by Registar Barber on Feb. 10
after a petition was filed against it.  The report notes that the
petition was advertised against the firm on January 29.

The report notes that on October 4, 2013, the Council of Licensed
Conveyancers (CLC) intervened with Blueprint Property Lawyers
Limited.  The report relates that the CLC went out to assure
customers that outstanding transactions would proceed with
minimal inconvenience.

As of late, B&C Distributor has witnessed a set of conveyancing
firms slip into liquidation, including industry heavyweights
Cobbetts, the report says.  All of Swinburne & Jackson LLP's 50
staff members were made redundant, the report discloses.

Blueprint Property Lawyer specialized in commercial and
residential property law.


CO-OPERATIVE BANK: Parent Uncovers GBP100 Million Costs Savings
---------------------------------------------------------------
James Quinn at The Telegraph reports that the Co-operative Group
has uncovered a further GBP100 million of cost savings to put
towards the GBP462 million it has to inject into Co-operative
Bank, its banking arm, by the end of the year.

The discovery by the troubled mutual -- whose chief executive
said 2013 would go down as its worst year on record -- further
reduces the need for major disposals by the group, The Telegraph
says.

The mutual is understood to have found the savings by cutting
costs within the business, looking at efficiencies and supply
arrangements, The Telegraph notes.

According to The Telegraph, the GBP100 million savings, combined
with the GBP219 million from the sale of its life insurance arm
last July, mean the mutual only has to find a further GBP143
million within the group by the end of the year to put towards
the bank's GBP1.5 billion recapitalization.

As a result, disposals of any of its trophy assets now appear
unlikely, The Telegraph says.

                    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.


ERIC ALCOCK: Goes Into Liquidation, Ceases Trading
--------------------------------------------------
Emma Davies at The Sentinel reports that Eric Alcock Ltd ceased
trading in January after entering into voluntary administration.

The remaining stock from the stores in Alsager, Kidsgrove,
Newcastle, Crewe Sandbach and Middlewich was auctioned off,
according to The Sentinel.  The report relates that dozens of the
company's employees have been made redundant.

John-Paul O'Hara, of JPO Restructuring, which is handling the
administration, said: "The company suffered as many businesses
have during the recession, but also because a lot of people buy
online these days making it difficult for high street stores.
Sadly the owner had to make the remaining employees redundant.
The director tried to address the situation himself and chose a
creditor's voluntary liquidation," the report relates.

"The company was declared insolvent and unable to pay creditors
on January 29.  Now we are trying to release assets to maximise
return to creditors.  It is a bit of a sad situation. There was a
long serving workforce so we have done what we can to give the
staff what they are entitled to."

The family-run home entertainment and domestic appliance retailer
and service agent had more than 50 years' experience in the
electrical retail trade.


INVENSYS PLC: Moody's Puts Ba1 Rating on Review for Upgrade
-----------------------------------------------------------
Moody's Investors Service has withdrawn all ratings of Invensys
plc ("Invensys", Ba1 under review for upgrade) following the full
integration of the company into Schneider Electric SA
("Schneider", A3 stable) and for its own business reasons.

Ratings Rationale

On January 17, 2014, Schneider announced that it had completed
the acquisition of Invensys. As a result, Invensys has been fully
integrated into Schneider. On August 05, 2013, Moody's had placed
Invensys plc's Ba1 CFR and Ba1-PD ratings under review for
upgrade following the announcement that Invensys's board of
directors had accepted an offer for Invensys to be acquired by
Schneider. As of September 30, 2013, Invensys had no rated debt
outstanding.

Moody's has withdrawn the rating for its own business reasons.

Regulatory Disclosures

For any affected securities or rated entities receiving direct
credit support from the primary entity(ies) of this rating
action, and whose ratings may change as a result of this rating
action, the associated regulatory disclosures will be those of
the guarantor entity. Exceptions to this approach exist for the
following disclosures, if applicable to jurisdiction: Ancillary
Services, Disclosure to rated entity, Disclosure from rated
entity.


MERCATOR CLO: Moody's Affirms B1 Rating on EUR19MM Cl. B-2 Notes
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of the
following notes issued by Mercator CLO II Plc:

EUR25.5M Class A-2 Senior Secured Floating Rate Notes due 2024,
Upgraded to Aa1 (sf); previously on Nov 10, 2011 Upgraded to Aa2
(sf)

EUR25M Class A-3 Deferrable Senior Secured Floating Rate Notes
due 2024, Upgraded to A1 (sf); previously on Nov 10, 2011
Upgraded to A2 (sf)

EUR25.5M Class B-1 Deferrable Senior Secured Floating Rate Notes
due 2024, Upgraded to Baa2 (sf); previously on Nov 10, 2011
Upgraded to Ba1 (sf)

EUR7M Class W Combination Notes due 2024, Upgraded to A3 (sf);
previously on Nov 10, 2011 Upgraded to Baa2 (sf)

Moody's also affirmed the ratings of the following notes issued
by Mercator CLO II Plc:

EUR274M (current balance EUR247.1M) Class A-1 Senior Secured
Floating Rate Notes due 2024, Affirmed Aaa (sf); previously on
Nov 10, 2011 Upgraded to Aaa (sf)

EUR19.5M Class B-2 Deferrable Senior Secured Floating Rate Notes
due 2024, Affirmed B1 (sf); previously on Nov 10, 2011 Upgraded
to B1 (sf)

Mercator CLO II Plc, issued in January 2007, is a multi currency
Collateralised Loan Obligation ("CLO") backed by a portfolio of
mostly high yield European loans. It is predominantly composed of
senior secured loans. The portfolio is managed by NAC Management
(Cayman) Limited, and this transaction will pass its reinvestment
end date in February 2014.

Ratings Rationale

According to Moody's, the rating actions taken on the notes
result from an improvement in key credit metrics of the
underlying portfolio and also the benefit of modelling actual
credit metrics following the imminent expiry of the reinvestment
period in February 2014.

The credit quality has improved as reflected in the improvement
in the average credit rating of the portfolio (measured by the
weighted average rating factor, or WARF). As of the trustee's
December 2013 report, the WARF was 2758, compared with 2927 in
December 2012. The weighted average spread also increased to
3.98% in December 2013 from 3.84% a year ago. The
overcollateralization ratios for various classes of notes have
largely remained stable over the past twelve months.

In consideration of the reinvestment restrictions applicable
during the amortization period, and therefore the limited ability
to effect significant changes to the current collateral pool,
Moody's analyzed the deal assuming a higher likelihood that the
collateral pool characteristics will continue to maintain a
positive buffer relative to certain covenant requirements. In
particular, the deal is assumed to benefit from a shorter
amortization profile and higher spread levels compared to the
levels assumed at the last rating action in November 2011.

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
(a) an EUR pool with performing par and principal proceeds
balance of EUR289.4 million, and defaulted par of EUR12.4 million
and (b) a GBP pool with performing par and principal proceeds of
GBP42.3 million , and defaulted par of GBP 1.7 million, a
weighted average default probability of 19.6% (consistent with a
WARF of 2814 with a weighted average life of 4.3 years), a
weighted average recovery rate upon default of 48.68% for a Aaa
liability target rating, a diversity score of 36 and a weighted
average spread of 3.98%. The GBP denominated assets are fully
hedged with a macro swap, which Moody's also modelled. 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 96.24% of the portfolio exposed to senior
secured corporate assets would recover 50% upon default, while
the remainder non first-lien loan corporate assets would recover
15%. In each case, historical and market performance 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, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed lower credit quality in the portfolio to
address refinancing risk. Loans to European corporates rated B3
or lower and maturing between 2014 and 2015 make up approximately
5.0% of the portfolio, which could make refinancing difficult.
Moody's ran a model in which it raised the base case WARF to 2994
by forcing ratings on 50% of the refinancing exposures to Ca; the
model generated outputs that were within one notch of 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 and 2) the 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:

1) 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 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.

2) Recoveries on 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.

3) Around 41% of the collateral pool consists of debt obligations
whose credit quality Moody's has been assessed by using credit
estimates.

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.


OPERA FINANCE: S&P Withdraws 'D' Ratings on Two Note Classes
------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' from
'CC (sf)' and withdrew, effective in 30 days' time, its credit
ratings on Opera Finance (CMH) PLC's class C and D notes.  At the
same time, S&P withdrew its 'B (sf)' and 'B- (sf)' ratings on the
class A and B notes, respectively.

The rating actions reflect principal losses in the transaction
and the payment of the senior classes of notes.  A note event of
default occurred in January 2014 as there were insufficient funds
to pay interest on the class A notes.  As a result, the class A
noteholders requested that all principal be paid on all classes
of notes, according to the post-enforcement waterfall.

The net funds received from property sales were insufficient to
pay the outstanding principal on the class C and D notes and pay
interest on the class D notes.  According to the February 2014
cash manager's report, the class C and D notes experienced a
principal loss of GBP66 million.

The class A and B notes received full payment of interest and
principal.  The issuer has written off the outstanding amount of
principal on the class C notes and interest and principal on the
class D notes.

S&P's ratings on Opera Finance (CMH)'s notes address the timely
payment of interest quarterly in arrears, and the payment of
principal no later than the January 2015 legal final maturity
date.

S&P has withdrawn its ratings on the class A and B notes as these
classes of notes have received full payment of interest and
principal from the net proceeds of the property sales.

Following the principal losses experienced by the Class C notes
and interest shortfalls and principal losses experienced by the
class D notes, S&P has lowered to 'D (sf)' from 'CC (sf)' its
ratings on these classes of notes in accordance with its
criteria. The ratings will remain at 'D (sf)' for a period of 30
days before the withdrawals become effective.

Opera Finance (CMH) was an Irish secured-loan commercial
mortgage-backed securities (CMBS) transaction, which closed in
February 2006.  It was originally backed by a single loan secured
on properties in Ireland.

RATINGS LIST

Class              Rating
            To                From

Opera Finance (CMH) PLC
EUR375 Million Commercial Mortgage-Backed Floating-Rate Notes

Ratings Lowered And Withdrawn[1]

C          D (sf)             CC (sf)
           NR                 D (sf)

D          D (sf)             CC (sf)
           NR                 D (sf)

Ratings Withdrawn

A          NR                 B (sf)
B          NR                 B- (sf)

[1] The withdrawals become effective in 30 days' time.
NR--Not rated.


READERS'S DIGEST: Sold by Better Capital for Nominal Amount
-----------------------------------------------------------
Ashley Armstrong at The Telegraph reports that Reader's Digest
has been sold for just GBP1 by Better Capital to a venture
capitalist whose former TV company created Bob the Builder.

The sale for a nominal amount marks another chapter in the
magazine publishing company's chequered history and a steep
writedown for Jon Moulton's listed private equity firm, The
Telegraph notes.

Better Capital bought the business out of administration for
GBP14 million in 2010, The Telegraph recounts.  Mr. Moulton's
fund, which specializes in distressed assets, then invested a
further GBP9 million into the company, The Telegraph relays.
However, Reader's Digest collapsed into a company voluntary
arrangement last January after a severe decline in its book and
CD business, The Telegraph relates.

The CVA in 2013 saw 95 out of 125 staff lose their jobs but
allowed the magazine to continue trading while exiting its
unprofitable marketing activities, The Telegraph notes.

Mr. Moulton, as cited by The Telegraph, said on Saturday night
that Better Capital had taken the recent decision to sell
Reader's Digest because "from the viewpoint of the fund, the
business didn't justify the time and effort for us".

                       About Reader's Digest

Reader's Digest is a global media and direct marketing company
that educates, entertains and connects consumers around the world
with products and services from trusted brands.  For more than 90
years, the flagship brand and the world's most read magazine,
Reader's Digest, has simplified and enriched consumers' lives by
discovering and expertly selecting the most interesting ideas,
stories, experiences and products in health, home, family,
food, finance and humor.

RDA Holding Co. and 30 affiliates (Bankr. S.D.N.Y. Lead Case No.
13-22233) filed for Chapter 11 protection on Feb. 17, 2013,
with an agreement with major stakeholders for a pre-negotiated
chapter 11 restructuring.  Under the plan, the Debtor will issue
the new stock to holders of senior secured notes.

RDA Holding Co. listed total assets of $1,118,400,000 and total
liabilities of $1,184,500,000 as of the Petition Date.

Weil, Gotshal & Manges LLP serves as bankruptcy counsel to the
Debtors.  Evercore Group LLC is the investment banker.  Epiq
Bankruptcy Solutions LLC is the claims and notice agent.

Reader's Digest, together with its 47 affiliates, first sought
Chapter 11 protection (Bankr. S.D.N.Y. Case No. 09-23529)
Aug. 24, 2009 and exited bankruptcy Feb. 19, 2010.

The plan in the new Chapter 11 case provides that holders of
allowed general unsecured claims in such sub-class will receive
their pro rata share of the GUC distribution; holders of allowed
general unsecured claims of Reader's Digest will also receive
their pro rata share of the RDA GUC distribution and the senior
noteholder deficiency claims in such sub-class will be deemed
waived solely for purposes of participating in the GUC
distribution and the RDA GUC distribution.

The Official Committee of Unsecured Creditors is represented by
Otterbourg, Steindler, Houston & Rosen, P.C.  The Committee
tapped Alvarez & Marsal North America, LLC, as financial
advisors.


SYNERGY CAPITAL: Bglobal PLC Secures Delay Loan Repayments
----------------------------------------------------------
Alliance News reports that Bglobal PLC said it has agreed to
postpone the repayment of a GBP1.0 million loan, boosting its
cash flow, because the company it borrowed from is being
liquidated.

In a statement, the energy metering company said it still owed
GBP950,000 on the convertible loan from Synergy Capital Ltd,
which dates back to February 2009, as well as interest payments
for the first quarter of the current calendar year, according to
Alliance News.

The report notes that the loan had been but Bglobal will now
repay the first GBP250,000, followed by four monthly installments
of GBP50,000 each set to begin on March 11.

"We are delighted to have agreed a deferral of the loan, as this
gives the group a significant boost to its cash flow.  We are
currently making good progress on the sale of our Metering
business and are in detailed and advanced discussions with a
number of interested parties, which we will update shareholders
on in due course," Tim Jackson-Smith, chief executive, said in a
statement obtained by the news agency.

However, the report notes that the interest on the outstanding
balance will run at 10% a year, up from the previous level of 8%.
The interest payments will be paid on a quarterly basis in
arrears.

The report discloses that the loan can be converted into equity
at Synergy's option at any time up to and including July 11.  The
report relays that Synergy would pay 17 pence per share under the
terms of the loan.

The report says that Bglobal has the right repay the loan early
if it gives 30 days' notice at any time during the term of the
loan. If Bglobal takes that option, Synergy has the right to
convert its loan notes into shares at the same 17 pence
conversion price, the report adds.


* Fasken Martineau Adds Ex-Davenport Lyons Tax Atty in UK
---------------------------------------------------------
Fasken Martineau, a leading international business law and
litigation firm, announced on Feb. 5 that Gerald Montagu --
gmontagu@fasken.com -- has joined the London office as a partner
in the Tax Group.

According to the firm's press statement, Gerald Montagu brings to
Fasken Martineau a wealth of experience and broad expertise in
both UK and international tax planning. He has advised clients
across various sectors, including financial services, real
estate, media and leisure. He advises on the tax aspects of
financing arrangements, M&A, joint ventures, insolvency, as well
as in relation to tax disputes. In addition, Gerald is widely
published on tax and related subjects, including as General
Editor of Norfolk and Montagu on the Taxation of Interest and
Debt Finance.

"Here at Fasken Martineau we are delighted to add to our tax
group someone of Gerald's capabilities. We believe his experience
and expertise will be greatly valued by our clients, both in the
UK and around the world," said Gary Howes, Regional Managing
Partner for Fasken Martineau in London.

              About Fasken Martineau DuMoulin LLP

Fasken Martineau -- http://www.fasken.com-- is an international
business law and litigation firm. With more than 770 lawyers, the
firm has offices in Vancouver, Calgary, Toronto, Ottawa,
Montreal, Quebec City, London, Paris and Johannesburg.



===================
U Z B E K I S T A N
===================


IPAK YULI: Fitch Publishes 'B-' Issuer Default Rating
-----------------------------------------------------
Fitch Ratings has published Ipak Yuli Bank's (IY) Long-term
foreign currency Issuer Default Rating (IDR) of 'B-'.  Fitch has
also affirmed KDB Bank Uzbekistan (KDBUz) and POJSEB Trustbank's
(TB) Long-term foreign currency IDRs at 'B-' and Universalbank's
(UB) Long-term local currency IDR at 'CCC'.  At the same time,
the agency has withdrawn KDBUz's ratings, as the bank has chosen
to stop participating in the rating process.  Therefore, Fitch
will no longer have sufficient information to maintain the
ratings. Accordingly, Fitch will no longer provide ratings or
analytical coverage for KDBUz.

The affirmations reflect Fitch's assessment of persistent
weaknesses in the Uzbekistan operating environment, in particular
high transfer and convertibility risks presented in the economy
due to the country's tightly regulated FX market, and the banks'
generally limited franchises (more acute for UB, which is
consequently rated one notch lower than its peers).

IY's, TB's and UB's Long-term IDRs are driven by their intrinsic
creditworthiness, as reflected in their Viability Ratings (VR).
IY's, TB's and UB's SRFs of 'No Floor' and their '5' Support
Ratings reflect their relatively limited scale of operations
rendering extraordinary support from Uzbek authorities unlikely.
The ability of the banks' private shareholders to provide support
cannot be reliably assessed and, therefore this support is not
factored into the ratings.

             KEY RATING DRIVERS AND SENSITIVITIES - IY

IY's 'b-' VR reflects its reasonable asset quality metrics, solid
performance and currently sufficient liquidity and capital
buffers.  On the negative side, the VR also takes into account
the bank's quite narrow franchise and some weaknesses of the
operating environment.

IY reported impaired loans at moderate 3% of the end-2013 loan
book, which were fully covered by impairment reserves.  Based on
the analysis of largest exposures, Fitch does not have concerns
about these.  Nevertheless, should asset quality deteriorate,
IY's capitalization (regulatory capital adequacy ratio (CAR) of
16% at end-2013) would allow it to increase loan provision up to
about 15% of gross loans before breaching minimum regulatory
capital requirements.  Credit risks are further mitigated by
solid profitability (local GAAP operating ROAE of 28% in 2013).

Liquidity is reasonable with available stock of liquid assets
covering about 39% of customer funding at end-2013.

In 2Q13 Asian Development Bank (ADB; AAA/Stable) acquired a 13.6%
stake in IY.  Fitch believes this may be moderately positive for
the bank's corporate governance, but does not factor support from
ADB into the bank's ratings.

             KEY RATING DRIVERS AND SENSITIVITES: TB

TB's ratings are pressured by a risky operating environment, as
well as high reliance on cheap funding from its related party,
the Uzbek Commodities Exchange (UCE) and its affiliates, which
accounted for about half of the bank's total liabilities at end-
11M13.  At the same date, TB's liquid assets (net of potential
debt repayments) covered around 33% of its customer accounts,
mitigating withdrawal risk to an extent.

TB's ratings also account for its rapid loan growth (by 1.8x in
2013), which means current solid reported asset quality (zero
reported NPLs) may deteriorate somewhat as the loans season.
TB's profitability metrics have historically been strong, with
ROAA and ROAE for 2013 of 3.4% and 29.2%, respectively.
Capitalization is healthy (regulatory CAR was 17.7% at end-2013)
allowing the bank to reserve up to 21% of its gross loans without
breaching the regulatory minimum of 10%.

             KEY RATING DRIVERS AND SENSITIVITES: UB

UB's ratings are mainly constrained by its small franchise (total
assets of only USD32m at end-2013) resulting in high
concentrations on both sides of the balance sheet and low
operating efficiency (cost/income ratio of 77% for 2013).  The
ratings also account for the bank's potential asset quality
relapses (UB reported 22% impaired loans in its 2012 IFRS FS;
2013 local GAAP accounts show a positive trend but the
sustainability is questionable), relatively short track record of
operations and past regulatory problems (UB's license on foreign
currency operations was revoked in July 2012) limiting its fee
generation.

Positively, UB's credit profile benefits from the bank's
currently sufficient liquidity (covering around 32% of the bank's
customer accounts at end-2013) and high regulatory CAR of 31.3%
at end-2013, which is sufficient to reserve up to 50% of gross
loans.

                  RATING SENSITIVITIES: IY, TB, UB

An upgrade of IY and TB's Long-term foreign currency IDRs and VRs
would require a general improvement in the operating environment.
An upgrade of UB would require significant growth of its
franchise, greater diversification and profitability improvement,
while maintaining adequate asset quality, liquidity and
capitalization.

A downgrade could occur in case of deterioration of operating
environment, significantly increased pressure on capital as a
result of marked deterioration of the credit quality and/or major
liquidity shortfalls (eg. in case of withdrawals by key
customers).

Fitch does not anticipate changes to the Support Ratings and SRFs
of these banks given their moderate systemic importance.
The rating actions are as follows:

IY

   -- Long-term foreign currency IDR: published at 'B-', Outlook
      Stable

   -- Short-term foreign currency IDR: published at 'B'

   -- Long-term local currency IDR: published at 'B-', Outlook
      Stable

   -- Short-term local currency IDR: published at 'B'

   -- Viability Rating: published at 'b-'

   -- Support Rating: published at '5'

   -- Support Rating Floor: published at 'NF'

TB

   -- Long-term foreign currency IDR: affirmed at 'B-', Outlook
      Stable

   -- Short-term foreign currency IDR: affirmed at 'B'

   -- Long-term local currency IDR: affirmed at 'B-', Outlook
      Stable

   -- Short-term local currency IDR: affirmed at 'B'

   -- Viability Rating: affirmed at 'b-'

   -- Support Rating: affirmed at '5'

   -- Support Rating Floor: affirmed at 'NF'

UB

   -- Long-Term local currency IDR: affirmed at 'CCC'

   -- Short-Term local currency IDR: affirmed at 'C'

   -- Viability Rating: affirmed at 'ccc'

   -- Support Rating: Affirmed at '5'

   -- Support Rating Floor: affirmed at 'No Floor'

KDBUz

   -- Long-term foreign currency IDR: affirmed at 'B-'; Outlook
      Stable; and withdrawn

   -- Short-term foreign currency IDR: affirmed at 'B'; and
      withdrawn

   -- Long-term local currency IDR: affirmed at 'B'; Outlook
      Stable; and withdrawn

   -- Short-term local currency IDR: affirmed at 'B'; and
      Withdrawn

   -- Viability Rating: affirmed at 'b'; and withdrawn

   -- Support Rating: affirmed at '5'; and withdrawn



===============
X X X X X X X X
===============


* U.S. Said Near Deal With EU on Reprieve for Swap-Trading Rules
----------------------------------------------------------------
Jim Brunsden and Silla Brush, writing for Bloomberg News,
reported that European swap-trading platforms won a reprieve from
Dodd-Frank Act rules in a cross-border regulatory deal announced
days before U.S. trading requirements are set to take effect.

According to the report, the U.S. Commodity Futures Trading
Commission and European Union officials, in an agreement
announced on Feb. 12, granted the European trading facilities
relief from having to register in the U.S. Many interest rate
swaps will be required to trade on swap execution facilities, or
Sefs, in the U.S. under CFTC rules starting Feb. 15.

"Today is an important step but far from the final one on the
road towards global convergence," Michel Barnier, the EU's
financial services chief, said on Feb. 12 in a joint statement
with the CFTC, the report cited.  "This agreement shows how, as
G-20 commitments move from words to action, regulators can and
should work together to ensure that their respective rules
interact with each other in the most effective and efficient
fashion."

The international reach of CFTC rules has been among the most
contentious issues between the Washington-based regulator and
financial firms that operate around the world, the report
related.  Wall Street lobbying groups that represent banks
including Goldman Sachs Group Inc. and JPMorgan Chase & Co. sued
in December, seeking to limit the agency's ability to impose
rules outside the U.S.

The Feb. 12 deal concerns EU trading platforms known as
multilateral trading facilities and the swaps traders who use
them, the report further related.


                            *********

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

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

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

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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

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

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000 or Nina Novak at
202-241-8200.


                 * * * End of Transmission * * *