TCREUR_Public/140314.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Friday, March 14, 2014, Vol. 15, No. 52



BANKA KOMBETARE: Fitch Assigns 'B' IDRs; Outlook Negative


* Fitch Affirms Ratings on 5 Azerbaijan Privately-Owned Banks


* ESTONIA: Corporate Bankruptcies Down 7.3% in 2013


CERBA EUROPEAN: Fitch Affirms 'B+' LT Issuer Default Rating
* FRANCE: Mulls Overhaul of Bankruptcy Rules to Help Ailing Cos.


STABILITY CMBS 2007-1: Fitch Affirms 'CC' Rating on Class E Notes


* HUNGARY: Company Liquidations Up 39% in February 2014


ITALCEMENTI SPA: Moody's Places Ba3 CFR on Review for Upgrade


ALLIANCE-LIFE: Fitch Affirms & Withdraws 'B' IFS Rating
RG BRANDS: Moody's Says Devaluation Credit Negative


HYVA GLOBAL: Fitch Affirms 'B' Long-Term IDR; Outlook Negative
* NETHERLANDS: Corporate Bankruptcies Reach 606 in February


GAZPROMBANK: Fitch Affirms 'bb' Viability Rating
KRAYINVESTBANK: Fitch Affirms 'B+' Issuer Default Rating
ORIENT EXPRESS: Fitch Assigns 'B+' IDR; Outlook Negative
TATTELECOM OJSC: Fitch Affirms 'BB' LT Issuer Default Rating


BANCAJA 10: S&P Lowers Rating on Class C Notes to 'D'
CODERE SA: Insolvency Law Changes Support Restructuring Plan
ISOLUX CORSAN: S&P Assigns 'B' CCR; Outlook Stable


UKRAINE: Senate Foreign Relations Committee Approves Aid

U N I T E D   K I N G D O M

EUROSAIL-UK 2007-6NC: S&P Cuts Ratings on 3 Note Classes to 'D'
MERGERMARKET USA: S&P Assigns 'B' CCR; Outlook Stable
NATIONWIDE CORE: Fitch Assigns BB+ Rating to Tier 1 Capital Secs.
NORD ANGLIA: Moody's Rates US$515MM Senior Secured Debt '(P)B1'

SOUTHAMPTON FOOTBALL CLUB: Ice Hockey Coach Becomes Chair





BANKA KOMBETARE: Fitch Assigns 'B' IDRs; Outlook Negative
Fitch Ratings has assigned Albania's Banka Kombetare Tregtare
(BKT) Long-term Issuer Default Ratings (IDRs) of 'B' with a
Negative Outlook and a Viability Rating (VR) of 'b'.  BKT has
been majority-owned since 2006 by Calik Holdings (Calik), a
privately-owned Turkish holding company engaged in various
businesses, mainly in its home market.  BKT was the second-
largest bank by total assets and customer deposits and loans in
the relatively small Albanian banking sector at end-2013.

Key Rating Drivers - IDRs, Support Rating, Support Rating Floor

BKT's IDRs are driven by its standalone risk profile, as
reflected by the bank's VR.  In Fitch's view support from BKT's
parent and from the Albanian state is possible but cannot be
relied upon.  The bank's Support Rating Floor of 'No Floor'
reflects uncertainty about the sovereign's willingness to bail
out failed banks, limited sovereign financial flexibility, the
foreign ownership of BKT and risks related to corporate
governance issues.

Key Rating Drivers - VR

The VR reflects BKT's exposure to weak operating environments in
Albania and Kosovo, high levels of moderately reserved non-
performing loans (NPLs), risks related to rapid recent loan
growth including outside its home markets and potential contagion
risks from the bank's ultimate owner through related party
transactions. BKT's capitalization is moderate given the
structure of the bank's assets, loan book concentrations,
unreserved NPLs and the potential for further asset quality

BKT's solid domestic market position, healthy liquidity and
limited refinancing risks are positive for the bank's ratings.
BKT's main credit risk lies with the bank's loan book which is
exposed to Albania, Kosovo (15% of the loan book at end-2013) and
international companies (12% of the loan book, most of which
related to Turkey).  Material credit risk also arises from BKT's
portfolio securities (43% of total assets at end-2013), where
exposures are largely non-investment grade.  Holdings of Albanian
T-bills and notes were a significant 26.5% of total assets.
BKT's NPL ratio (loans included in the substandard, doubtful and
loss loan categories as defined by Bank of Albania) was a high
11.7% at end-2013 although still significantly below the 23.5%
ratio for the overall banking sector.  IFRS loan loss reserves
coverage of NPLs was low (25% at end-2013).  Regulatory reserves,
used to calculate regulatory capital adequacy ratios, are higher
than IFRS accounts.  Taking the latter into consideration, the
NPL coverage ratio would increase to 72% at end-2013 and
unreserved NPLs would decline to a more acceptable 14% of BKT's
Fitch core capital from 38% based on IFRS reserves.

Loans past due more than 90 days accounted for 8.6% of gross
loans at end-2013 (2012: 8.2%) and were 97% covered by total

However, Fitch notes that the operating environment in Albania
and Kosovo remains weak and that the enforceability of collateral
can be difficult.  Foreign currency loans comprised 46% of the
portfolio at end-2013, although the recent stability of the
Albanian currency peg somewhat mitigates risks from these

BKT funds its operations largely with stable (mainly retail)
customer deposits (87.5% of total funding at end-2013;
denominated primarily in local currency or euros).  The less
liquid portion of the balance sheet, comprising loans to
customers and some loans to banks, was just 40% of total assets,
and the loans/deposits ratio was a low 42%.  Liquidity is also
supported by the substantial amount (equivalent to 18% of total
assets) of unencumbered Albanian government securities that can
be used in repo transactions with the central bank.

BKT's regulatory capital adequacy ratio was 14.6% at end-2013,
which Fitch views as moderate, particularly taking into account
that regulatory capital requirements cover only credit risk, and
the risk weighting on Albanian government bonds is 0%.  BKT's
higher Fitch core capital ratio (17.8% at end-2013) was mainly
driven by lower reserves in the IFRS accounts.

Potential contagion risk from Calik includes the bank's direct
related party transactions (USD59 million, 28% of Fitch core
capital). These were largely off-balance sheet items and security
holdings of and placements with Aktifbank (BKT's sister bank in
Turkey) at end-2013.  At the same time, Aktifbank had deposits
with BKT of USD11 million.

In addition, an investment in asset-backed securities, originated
by Aktifbank, was equal to USD79 million or 37% of Fitch core
capital, although the issue has a simple structure and BKT's
participation in the outstanding amount was around 24% at

BKT's reported operating profitability has been solid, with five-
year average ROAE and ROAA of 22% and 1.69%, respectively.
However, this partially reflects low IFRS loan impairment charges
(LICs, on average equal to 11% of pre-impairment profit during
the same period), resulting in moderate NPL coverage. 2013
profitability was also supported by a nonrecurring trading gain
on derivatives (9% of total revenue), which was partly offset by
a loss on the underlying asset reflected in comprehensive income.
The bank's recurring pre-impairment operating profits were stable
in 2013 relative to 2012 and driven by a moderate increase in the
loan portfolio (up 4.3% yoy) and larger holdings of fixed income
investment securities (over 30%).  Growth of earning assets was
predominantly funded by customer deposits (up 14% yoy) acquired
at lower rates.

Rating Sensitivities

The Negative Outlook on the bank's Long-term IDRs reflects
Fitch's view that the balance of risks remains on the downside
given Albanian country risks, as a result of weak domestic growth
and deteriorating government finances.  A further deterioration
in the operating environment and the sovereign credit profile
could result in a downgrade of BKT.

A marked deterioration in asset quality or higher risks stemming
from related party transactions could also trigger a downgrade.
A stabilization of the operating environment in Albania could
result in the Outlook on BKT's Long-term IDRs being revised to

The ratings are as follows:

   -- Foreign currency Long-term IDR: assigned at 'B'; Outlook

   -- Foreign currency Short-term IDR: assigned at 'B'

   -- Local currency Long-term IDR: assigned at 'B'; Outlook

   -- Local currency Short -term IDR: assigned at 'B'

   -- Viability Rating: assigned at 'b'

Support Rating: assigned at '5'

Support Rating Floor: assigned at 'No Floor'


* Fitch Affirms Ratings on 5 Azerbaijan Privately-Owned Banks
Fitch Ratings has affirmed the Long-term foreign currency Issuer
Default Ratings (IDRs) of Azerbaijan-based Unibank (UB) and
Demirbank (DB) at 'B', and Atabank (AB), AGBank (AGB) and Bank
Technique (BT) at 'B-'.  The Outlooks on UB and DB have been
revised to Positive from Stable.  The Outlook on AGB has been
revised to Stable from Negative.  The Outlooks on AB and BT are


The affirmations reflect the banks' largely stable credit metrics
and currently favorable broader economy, which is supported by
high oil prices.  The spill-over effects of high oil prices on
the non-oil economy coupled with significant government spending
supported the gradual resolution of post-crisis asset quality
problems.  Additionally, the banks' bottom lines (particularly at
UB and DB) have benefited from rapid expansion in higher margin
retail and micro-lending.

Liquidity across the sector has been stable, underpinned by
fairly sticky funding and stable deposit growth.  Wholesale
funding of private banks is mainly sourced either from the
government or from development institutions, remains limited in
volume and reasonably diversified by maturity.

All five banks face capital pressure resulting from weak profit
generation (except for UB) driven by margin compression in
corporate lending, small operational scale, still significant
impairment charges and limited new equity injections.  ROAE was a
moderate 5% at AGB and 10% at AB in 2013.  However, DB and UB
appear better positioned to improve capitalization from internal
sources, as both banks' ROAE was commensurate with loan growth in

UB and DB reported fast retail growth of around 80% and 36%,
respectively, in 2013, although both have managed credit risks
fairly well so far, as reflected by low credit losses in 2013
(below 3.5% of average loans in 2013 at both banks).  Fitch
believes that further growth of reasonable quality in retail and
micro-lending is possible in the sector due to currently low
consumer indebtedness and low credit penetration (retail
loans/GDP equal to 11% at end-2013).  However, loss rates are
likely to increase as loan books season and market saturation

Credit risks relate mainly to slowly-amortizing corporate loan
books, which are particularly highly concentrated at AGB, AB and
BT, with the largest 20 borrowers accounting for around 30%-40%
of total loans or around 1.7x-2.1x end-2013 statutory equity in
each case.  AB's asset quality is currently reasonable, with
non-performing loans (NPLs; loans 90+ days overdue, reported net
of accrued interest) standing at 4.4% in end-2013 statutory
accounts, but a higher 10.5% and 24.2%, respectively at AGB and
BT.  BT's unreserved NPLs were equal to a high 1.7x IFRS equity
at end-1H13, but Fitch expects this to decrease gradually based
on reasonable collateral against some exposures and management's
reasonable track record of impaired loan recoveries.

The Positive Outlooks on UB and DB reflects Fitch's base case
scenario that their performance will remain reasonable as loan
books season, and that their more robust business models, growth
strategies and internal capital generation will therefore warrant
upgrades.  The banks' profitability benefits from higher margin
retail/small business lending, the moderate (compared with peers)
volatility of their impairment charges through the cycle, and the
lower amount of legacy impaired and non-core assets (which are
particularly high at BT and AGB).

The revision of AGB's Outlook to Stable from Negative reflects
the stabilization of asset quality and significant improvement of
operating performance.  In 2013, AGB reported positive, albeit
moderate, pre-impairment profit in its statutory accounts of
AZN3.6 million (8% of starting equity) net of non-received
interest.  Loan impairment charges were a moderate 1.3% of
average loans.  At the same time, Fitch continues to consider the
amount of accrued, but not received, interest income as
substantial relative to capital (0.6x tangible statutory equity
at end-2013).  Part of this relates to performing loans with
grace periods on interest payments.


UB and DB could be upgraded if they show an extended track record
of reasonable asset quality and manage to defend their
profitability amid more intense competition and greater market
saturation in their lending segments.  Conversely, a marked
weakening of profitability and/or deterioration of asset quality
would likely result in the revision of the Outlooks to Stable.
Upside potential for the ratings of BT, AGB and AB is unlikely in
the near term, as reflected by their Stable Outlooks. However,
gradual improvements in the operating environment, further
recoveries of legacy impaired loans and the strengthening of the
banks' internal capital generation could give rise to moderate
upward rating pressure over time.

The ratings of all five banks could come under downward pressure
if there was a large and sustained drop in oil prices, although
this scenario is not expected in the near term.  Sharp
deterioration in asset quality and/or liquidity at any of the
banks could also cause a downgrade.


The SRFs of 'No Floor' and '5' Support Ratings for each of the
banks reflect their relatively limited systemic importance, as a
result of which extraordinary support from the Azerbaijan
authorities cannot be relied upon, in Fitch's view.  The
potential for support from private shareholders cannot be
reliably assessed. Fitch does not expect any revision of the
banks' SRFs or Support Ratings in the foreseeable future.
The rating actions are as follows:


   -- Long-term foreign currency IDR: affirmed at 'B', Outlook
      revised to Positive from Stable

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

   -- Viability Rating: affirmed at 'b'

   -- Support Rating: affirmed at '5'

   -- Support Rating Floor: affirmed at No Floor


   -- Long-term foreign currency IDR: affirmed at 'B', Outlook
      revised to Positive from Stable

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

   -- Viability Rating: affirmed at 'b'

   -- Support Rating: affirmed at '5'

   -- Support Rating Floor: affirmed at No Floor


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

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

   -- Viability Rating: affirmed at 'b-'

   -- Support Rating: affirmed at '5'

   -- Support Rating Floor: affirmed at No Floor


   -- Long-term foreign currency IDR: affirmed at 'B-', Outlook
      revised to Stable from Negative

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

   -- Viability Rating: affirmed at 'b-'

   -- Support Rating: affirmed at '5'

   -- Support Rating Floor: affirmed at No Floor

Bank Technique:

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

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

   -- Viability Rating: affirmed at 'b-'

   -- Support Rating: affirmed at '5'

   -- Support Rating Floor: affirmed at No Floor


* ESTONIA: Corporate Bankruptcies Down 7.3% in 2013
Baltic Business News, citing Aripaev, reports that while in 2013
the number of bankruptcies was decreasing, the trend has now

According to BBN, most of the bankruptcies are taking place in
the sectors of accommodation, catering, construction,
manufacturing industry, wholesale and retail.

During the year, 459 business undertakings went bankrupt, BBN
discloses.  Of them, 151 were declared bankrupt and 308 were
liquidated, BBN relays.  In comparison with 2012, the number of
bankruptcies in 2013 fell by 7.3%, BBN notes.


CERBA EUROPEAN: Fitch Affirms 'B+' LT Issuer Default Rating
Fitch Ratings has affirmed Cerba European Lab SAS's Long-term
Issuer Default Rating (IDR) at 'B+'.  The Outlook is Stable.
Fitch has also affirmed Cerba's EUR365 million senior secured
notes at 'BB-'/'RR3'.

The affirmation and Stable Outlook reflect Cerba's like-for-like
performance in the nine months to September 2013 in line with our
expectations, supported by recurring volumes of tests across the
routine laboratories network and healthy revenue growth in the
Specialised and Central Lab divisions.  Fitch expects total
organic revenue growth in 2014 and 2015 to reach at least 2% p.a.
Cerba's disciplined approach towards the acquisition of routine
labs in France since the 2013 refinancing has translated into
lower bolt-on M&A activity than Fitch initially anticipated but
has enabled the group to increase its EBITDA margin to 22.2% in
the first nine months of 2013 (2012: 21.4%).  Fitch expects the
group EBITDA margin to remain above 20% as well as free cash flow
generation and credit metrics to remain consistent with a 'B+'
IDR over the medium term.

Key Rating Drivers

Leading Clinical Laboratories Player

Cerba is a leading player in the clinical pathology laboratories
market in France.  The group benefits from a strong reputation
for scientific expertise and innovation at the specialized end of
the market (37% of YTD Sept. 2013 revenue, excluding intercompany
sales).  Cerba is also developing a network of routine labs (32%
of sales) around regional platforms that demonstrates its
logistical ability to handle a high volume of tests.  The IDR is
supported by resilient like-for-like performance both
historically and in future, underpinned by growing volumes and
relatively stable profitability margins.

Business and Geographical Diversification

The group's additional activities in its Central Lab division
globally (12% of sales) as well as its presence in the Belgian
and Luxembourg routine markets (23% of sales) provide some
geographical diversification and reduce Cerba's exposure to the
French healthcare system.  Nonetheless, Fitch views the agreement
signed in Oct. 2013 between the French clinical pathology
laboratories unions and the authorities positively as it
mitigates the possibility of drastic reimbursement cuts until
2016, provided volumes do not increase beyond certain thresholds.

Track Record of Acquisitive Strategy

The ratings also reflect Cerba's ability to take advantage of the
fragmentation of the French routine market.  In Fitch's view,
Cerba's acquisitive strategy is sensible as it enables the group
to broaden its network of labs around regional platforms whilst
realising synergies and increasing scale.  Fitch considers the
operational execution risk is reduced by management's experience
with similar expansion plans.  Fitch has assumed Cerba will spend
up to EUR50m p.a. on bolt-on acquisitions over the next two
years. A larger acquisition would be considered as event risk.

Weak Credit Metrics

The group's credit metrics are weak but commensurate with a 'B+'
IDR given the sector.  Fitch expects Cerba's free cash flow
generation to remain constrained to low-mid single digit (as a
percentage of revenue) as a result of high cash interest paid on
the EUR365m senior secured notes.

Acquisitions to Drive Mild Deleveraging

Fitch expects bolt-on acquisitions to support mild deleveraging
prospects over the medium term.  Despite uncertainty surrounding
the exact timing of acquisitions, Fitch continues to expect FFO
adjusted gross leverage to reach about 6.0x by 2014-2015 (pro
forma for 12 month-contribution of acquisitions).  In an
environment of persistent pressure on reimbursement tariffs from
payers, Fitch believes that Cerba is reliant on successfully
integrating these primarily debt-funded acquisitions and
extracting synergies to increase EBITDA and funds from operations

Rating Sensitivities

Positive: Future developments that could lead to positive rating
actions include: Cerba's ability to increase its scale via
acquisitions whilst improving financial flexibility, resulting
in a FFO adjusted leverage below 5.0x and FFO interest coverage
above 3.0x on a sustained basis (pro forma for acquisitions).

Negative: Future developments that could lead to negative rating
action include: Cerba's inability to increase EBITDA and FFO
such that the FFO adjusted leverage exceeds 6.5x and FFO
interest coverage decreases below 2.0x on a sustained basis (pro
forma for acquisitions).

Liquidity and Debt Structure

Cerba's liquidity is satisfactory with EUR69 million of cash on
balance sheet as of Sept. 30, 2013, enhanced by an undrawn EUR50
million revolving credit facility.  Cerba does not face any major
seasonal working capital movements throughout the year and does
not have any significant debt maturities until 2020 when the
senior secured notes fall due.  This provides the group with some
financial flexibility to execute its acquisition strategy.

* FRANCE: Mulls Overhaul of Bankruptcy Rules to Help Ailing Cos.
Julie Miecamp at Bloomberg News reports that France is proposing
to overhaul bankruptcy rules for the second time in four years to
speed up restructuring procedures and give creditors greater

Bloomberg relates that the Ministry of Justice said in an
e-mailed statement the measures make it simpler for companies to
negotiate with lenders using a court-appointed mediator under a
process known as "conciliation".

According to Bloomberg, under the proposals, businesses will also
have to consider alternative restructuring plans put forward by
lenders and there will be greater protection for rescue financing
offered by investors.

The Ministry said in the March 12 statement the government is
seeking speedier restructuring deals to help rescue ailing
companies and preserve jobs, Bloomberg notes.

The proposals are a "first step to a rebalancing of power between
creditors, the borrower and shareholders," Bloomberg quotes
Emmanuel Ringeval, co-head of restructuring practice in Paris for
law firm Freshfields Bruckhaus Deringer LLP, as saying.  "Until
now, the creditors were denied by law the right to influence any
restructuring proceedings."


STABILITY CMBS 2007-1: Fitch Affirms 'CC' Rating on Class E Notes
Fitch Ratings has upgraded STABILITY CMBS 2007-1 GmbH's class A
and B commercial mortgage-backed floating-rate notes and affirmed
the others as follows:

   -- EUR75.3m senior swap affirmed at 'AAAsf'; Outlook Stable

   -- EUR0.1m Class A+ (DE000A0N30Z7) affirmed at 'AAAsf';
      Outlook Stable

   -- EUR31.8m Class A (DE000A0N3005) upgraded to 'AAsf' from
      'Asf'; Outlook Stable

   -- EUR46.4m Class B (DE000A0N3013) upgraded to 'Asf' from
      'BBBsf'; Outlook Stable

   -- EUR30.5m Class C (DE000A0N3021) affirmed at 'BBsf'; Outlook
      revised to Stable from Negative

   -- EUR30.4m Class D (DE000A0N3039) affirmed at 'CCCsf;
      Recovery Estimate RE90%

   -- EUR28.2m Class E (DE000A0N3047) affirmed at 'CCsf'; 'RE0%'
      EUR13.9m Class F (DE000A0N3054) Not rated

STABILITY is a synthetic securitization of commercial mortgage
loans originated by IKB Deutsche Industriebank AG, with the notes
collateralized by debt instruments issued by Kreditanstalt fur
Wiederaufbau (AAA/Stable/F1+).


The upgrade of the class A and B notes and revision of the
Outlook on the class C notes are driven by increased credit
enhancement resulting from strong (p)repayments over the past
nine months combined with the upcoming LEO loan full repayment
(EUR101.7 million syndication portion of a EUR745.8 million loan,
40% of the outstanding pool balance) which will fully amortize
the senior swap, class A+ notes and a large portion of the class
A notes.  The servicer is expecting the repayment in full on
either the May or August 2014 interest payment dates.

The amortization of EUR76 million since the last performance
review in June 2013, has reduced the aggregate pool balance to
EUR256.5 million in January 2014 (EUR909.2 million at closing).
The increased credit enhancement, resulting from fully sequential
principal paydown, provides senior investors with further
protection against loan credit events (which rose to EUR34.6
million in January 2014 from EUR14.5 million in April 2013) and
delinquencies in the portfolio.  This is less pronounced further
down the capital structure, as reflected in the affirmation of
the remaining classes of notes.

The increase in the frequency of credit events is caused by a
number of maturity defaults over the past nine months.  All of
the defaulted loans have loan-to-value (LTV) ratios between 66%
and 76%, but interest coverage is in many cases weak due to high
vacancy.  As most assets have not been valued in the past six
years, the LTV ratios will not show the actual leverage.  Any
incurred losses will first diminish the non-rated EUR13.9 million
class F notes, before hitting the rated notes in reverse
sequential order.

Rating Sensitivities

Should the incidence of credit events in the portfolio increase
or the recoveries fall short of Fitch's expectations, a downward
revision of the Recovery Estimates for the class D and E notes as
well as a revision of the class C notes' Outlook may become


* HUNGARY: Company Liquidations Up 39% in February 2014
MTI-Econews, citing company-information provider Opten, reports
that a total of 3,662 companies underwent liquidation in Hungary
during the month of February, the second highest monthly total
ever recorded.

Opten said that the number of companies liquidated in Hungary
rose 39% in the first two months from the same period in 2013, a
year which saw a record number of company liquidations,
MTI-Econews relates.

According to MTI-Econews, Opten noted that the record number of
company liquidations support the company's previous prediction
that up to 40,000 companies could undergo liquidation in Hungary
this year as a result of the growing number of mandatory
liquidations ordered by the authorities against companies found
in non-compliance with regulations.


ITALCEMENTI SPA: Moody's Places Ba3 CFR on Review for Upgrade
Moody's Investors Service has placed on review for upgrade the
Ba3 corporate family rating (CFR), the Ba3-PD probability of
default rating (PDR) of Italcementi S.p.A. (ITC), (P)Ba3 rating
for its MTN programme and the Ba3/(P)Ba3 senior unsecured ratings
of its subsidiary Italcementi Finance S.A.. At the same time
Moody's placed under review for direction uncertain the Ba2 CFR
and Ba2-PD rating for Italcementi's subsidiary Ciments Francais
S.A. (CF) as well as the Ba2 senior unsecured rating of CF's
outstanding Euro Medium Term notes.

The NP/(P)NP short term ratings of ITC remain unaffected.

Ratings Rationale

The review was triggered by ITC's announcement of its plan to
streamline its corporate structure via (1) an exchange offer for
its listed savings shares into ordinary shares; (2) a capital
increase through a rights issue for an amount of approximately
EUR450 million dedicated to finance (3) a public tender offer for
all outstanding shares of Ciments Francais not owned by ITC at a
price of EUR78 per share.

In Moody's view the plan, if executed accordingly, would be
credit positive for ITC based on (1) a meaningful reduction of
Italcementi's high share of minority interest through the buy-out
of Ciments Francais minority shareholders thereby saving
approximately EUR17 million dividend payouts to Ciments
Francais's minority shareholders (based on 2013 figures); (2) no
impact on ITC's net debt levels by debt free financing of the
buy-out using the proceeds from the rights issue; (3) some cost
savings potential over the medium term from the delisting of CF
and a streamlined organizational structure. Furthermore the
conversion of savings shares into one single class of ordinary
shares will result in a (4) clearer capital structure.

The review will mainly but not exclusively focus on (1) the final
terms and conditions of the capital increase; (2) sufficient
acceptance of the tender offer by outstanding CF shareholders to
achieve at least 95% ownership needed for a squeeze out and
delisting of CF from the French stock market as well as (3) the
approval from at least 20% of savings shareholders to the
mandatory conversion of their saving shares into ordinary shares
needed for the mandatory conversion. The review will also take
into account ITC's operating and financial performance during
that time given various uncertainties in emerging markets of high
importance to ITC, in particular Egypt and Morocco.

Moody's expects to close the review shortly after the
finalization of the capital increase and tender offer expected
for June 2014. If the transaction is successful the review could
lead to either a confirmation of the current rating with a
positive outlook or an upgrade of ITC's ratings by maximum one
notch, finally depending on ITC's expected performance in 2014.

At the same time Moody's will conclude on the review of CF's
ratings with direction uncertain. The review will mainly focus on
the impact of a possible successful transaction and the resulting
change in the shareholder structure of CF to the CFR of CF which
currently benefits from a one notch uplift from the parent's CFR.
The review will focus on whether and how the currently stronger
standalone credit profile of CF will change following the full
takeover by ITC.

What Could Change The Ratings Down/Up

Prior to the review process, Moody's had noted that ITC's rating
could be upgraded if the company were able to improve on a
sustainable basis RCF/net debt towards 15% and debt/EBITDA to
4.5x with visibility of a continued improving trend. In our
rating assessment, Moody's would also take into account the
development and outstanding amount of Italcementi's non-recourse
securitization program, which under the current structure, as
long as it is maintained, fully removes such receivables from the
balance sheet thus helping to reduce the working capital
financing needs of the company and, hence, reported leverage.

Moody's also noted prior to the review that, for the rating
agency to consider a downgrade, although not expected at that
point in time given the overall stabilization of Italcementi's
markets, a deterioration in the group's credit profile, with
debt/EBITDA moving towards 6.0x and RCF/net debt sustainably
below 10%, could lead to negative pressure on the current rating.
In addition, weakening covenant headroom, which would put
Italcementi's access to liquidity at risk, would be a negative
rating driver.

Principal Methodologies

The principal methodology used in these ratings was the Global
Building Materials published in July 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 Bergamo, Italy, Italcementi is the world's 5th
largest cement producer with annual cement production capacity of
60 million tons. Italcementi is downstream integrated in
aggregates and ready-mix concrete. The group's cement and clinker
business, which accounts for more than two-thirds of total sales
is supplemented by aggregates, ready-mix concrete businesses.
Including its Italian market, Italcementi (ITC), via its 83.2%-
owned subsidiary Ciments Francais (CF), is active in 22
countries, with an emphasis on the Mediterranean basin. The
company is majority-owned by Italian investment holding
Italmobiliare. In 2013, Italcementi generated revenues of EUR4.2
billion and reported an EBIT of EUR159 million.


ALLIANCE-LIFE: Fitch Affirms & Withdraws 'B' IFS Rating
Fitch Ratings has affirmed Kazakhstan-based IC Alliance-Life
Insurance JSC's (Alliance-Life) Insurer Financial Strength (IFS)
Rating at 'B' and its National IFS Rating at 'BB(kaz)' with
Negative Outlooks.  Fitch has simultaneously withdrawn the

Key Rating Drivers

The ratings reflect Alliance-Life's track record of negative
operating performance; its portfolio concentration on annuity
contracts (71% of gross written premium in 2013), which limits
the insurer's risk diversification and exposes it to longevity
and interest-rate risks; and its adequate capital position.

The Negative Outlook reflects Alliance-Life's high vulnerability
to recent unfavorable changes in the Kazakh regulatory landscape,
affecting pension annuities and workers' compensation (WC), both
key lines for the insurer.

Since 2Q13, Kazakh life insurers have been unable to sell pension
annuity products due to regulatory changes.  In addition, WC has
experienced a sharp increase in disability claims frequency in
the last two years, reflecting the unfavorable claims regulation
for the line.  If the regulatory landscape does not improve,
Fitch would expect Alliance-Life to remain unprofitable in 2014.
The insurer would then be increasingly reliant on shareholder

Fitch has withdrawn Alliance-Life's ratings as the company 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 Alliance-Life.

RG BRANDS: Moody's Says Devaluation Credit Negative
Moody's Investors Service has said that the devaluation of the
Kazakhstani tenge announced by the National Bank of Kazakhstan
(NBK) in early February is credit negative for JSC RG Brands (B2
stable), one of Kazakhstan's leading food and beverages
producers. However, despite the negative effects of currency
mismatches between its sales and operating costs, Moody's
considers RG Brands' fairly strong financial position as
sufficient to offset the negative effect of the devaluation. In
addition the company plans to take a number of steps to mitigate
the effects of devaluation.

On February 11, 2014, NBK devalued the tenge by approximately 19%
to 185 KZT/USD (with a band of +/- 3 tenge), from around 155
KZT/USD previously. The latest devaluation is of a similar
magnitude to the one that took place in February 2009 when the
NBK cut the exchange rate by around 20%.

RG Brands is exposed to devaluation, with about 70% (60% in US
dollars and 10% in euros) of the company's cost of materials in
foreign currency as the majority of its raw materials (such as
juice concentrates) are imported, while more than 90% of its
revenues are in tenge. In addition, the company faces higher
funding costs, as around 40% of its debt was foreign-currency
denominated as at end-2013.

However, according to Moody's, RG Brands is better prepared to
cope with the negative effects of a devaluation than it was in
2009 because of its lower leverage, higher margins and larger
revenue base. For the nine-month period ending September 30,
2013, the company's adjusted leverage was around 2.4x (vs. 5.1x
in 2008), EBIT margin was 10.6% (vs. 8.7% in 2008) and revenues
were about 50% higher than company's total sales in 2008
(KZT24.5 billion). RG Brands also has a solid liquidity profile,
which is supported by a number of available committed lines of
around US$50 million, as well as a cash balance of approximately
US$10 million as at-end 2013.

RG Brands should also be able to withstand and partly offset
pressure on its operating margins by (1) benefiting from the
natural hedge from the terms of supply contracts for Pepsi and
Lipton Ice tea concentrate (10% of total cost of materials
denominated in foreign currency), which fix the company's margins
by linking the purchase prices of the concentrate to those
charged by RG Brands; (2) gradually increasing the prices for
some products; (3) optimizing its product mix; (4) implementing a
cost reduction program; (5) negotiating potential price discounts
with suppliers; and (6) arranging forward contracts for
commodities. In addition, in the longer term, the company expects
to win additional market share from competitors by implementing a
more adaptive price strategy than its key competitors.

At this point, Moody's expects a moderately negative effect on
operating margin, which will remain above 10%. In Moody's view,
it may be more challenging for RG Brands to continue to grow
sales volumes at the same pace considering the effect of price
increases. However, Moody's expects that competitors will have to
also pass on price increases and that the competitive position of
RG Brands will remain strong in its market. Moody's does not
expect that the devaluation will result in a substantial increase
in the company's leverage with adjusted debt/EBITDA remaining
below 3x at year-end 2014. Nevertheless, there are moderate risks
that RG Brand's financial metrics may be weaker than expected if
the market conditions in Kazakhstan worsen materially beyond
current expectations.


HYVA GLOBAL: Fitch Affirms 'B' Long-Term IDR; Outlook Negative
Fitch Ratings has affirmed Netherlands-based Hyva Global's
Long-Term Foreign Currency Issuer Default Rating (IDR) and senior
unsecured rating at 'B'.  The Outlook on the IDR is Negative.
Fitch has also affirmed Hyva's US dollar senior secured notes due
2016 at 'B'.  Fitch has simultaneously withdrawn all the ratings.
Hyva's ratings are supported by its improving operations and
adequate liquidity, but credit metrics remain weak for its rating
level, which supports our Negative Outlook.  Hyva is a
manufacturer of hydraulic cylinders for applications in heavy-
duty equipment.

Fitch is withdrawing the ratings on Hyva's request.  Hyva has
chosen to stop participating in the rating process and Fitch will
no longer have sufficient information to maintain the ratings.
Accordingly, Fitch will no longer provide ratings or analytical
coverage for Hyva.

Key Rating Drivers

Modest Recovery to Continue: Hyva's operations are recovering
modestly after a sharp deterioration in 2012, helped by a low
base effect and improved demand, especially from China and
Brazil.  9M13 revenue is still down 4.7% yoy but quarterly
revenue began to show positive yoy growth starting in 3Q13 as
sales in China bottomed during 1Q13.  Overall EBITDA for 9M13
remained flat from the previous year, but if Fitch excludes one-
off restructuring costs of USD6.9 million, adjusted EBITDA
improved by nearly 20%.  Fitch expects the modest recovery to
continue, leading to improvement in revenue and profitability.

Credit Metrics to Improve: With the improvement in operating
performance, Fitch expects the company to generate positive free
cash flow from 2014 with improved operating cash flow and stable
working capital.  Accordingly Fitch also expects the company's
credit metrics, which had deteriorated sharply in 2012, to
gradually improve over the next two to three years.  4Q13 results
have yet to be announced, but Fitch expects the company's FFO net
leverage to have fallen to around 7x in 2013 from 9x in 2012 and
to improve further in 2014.

Leverage and Interest Coverage Remain Stretched: While the
improvement in credit metrics is positive, Fitch believes Hyva's
leverage remains high for its rating level and will remain above
our negative guideline of 5.5x in 2014.  FFO fixed charge
coverage is also expected to improve but to remain below Fitch
1.5x guideline until 2014.  As such, a Negative Outlook remains
appropriate at this point of time.

Robust Market Presence: Hyva's ratings are supported by its
strong market presence in its niche markets and well-diversified
geographical sales base, with a strong focus on high-growth
emerging markets such as China, India and Brazil.

Liquidity Remains Adequate: The company remains in breach of
covenants for a USD30 million revolving credit facility as of
September 2013.  As such, it no longer has access to the
facility.  However, the company had not used the facility for the
18 months prior to September 2013.  Fitch further believes its
existing cash position of USD66 million as of September 2013,
although down from USD89 million as of end-2012, is adequate as
its senior notes, which account for nearly all of its existing
debt, do not mature until 2016.

* NETHERLANDS: Corporate Bankruptcies Reach 606 in February
Statistics Netherlands reports that in February this year, 606
businesses and institutions (excluding one-man businesses) were
declared bankrupt, i.e. 11 more than in January.

According to Statistics Netherlands, many businesses and
institutions declared bankrupt were active in the sectors trade
(145), financial services (88) and manufacturing industry (75).


GAZPROMBANK: Fitch Affirms 'bb' Viability Rating
Fitch Ratings has affirmed Russia-based Gazprombank's (GPB) and
its 100% subsidiary Gazprombank (Switzerland) Ltd.'s (GPBS) Long-
term Issuer Default Ratings (IDRs) at 'BBB-' with Stable Outlook.

Key Rating Drivers - Gazprombank's Idrs, National Rating, Support
Rating And Support Rating Floor

GPB's Long-term IDRs are driven by its Support Rating Floor at
'BBB-' which, in turn, reflects Fitch's view of the high
probability that support for the bank will be forthcoming, if
needed, from the Russian Federation (BBB/Stable) or other state-
controlled entities, most probably, the bank's founder and
significant shareholder OAO Gazprom (BBB/Stable).  Fitch's view
is based on GPB's high systemic importance for the banking
sector, a high degree of state control and supervision over the
bank through quasi-sovereign entities, a strong track record of
support, and high reputational risks of a potential default for
the Russian authorities and the bank's state-controlled

The one-notch differential between the bank's Long-term IDRs and
the sovereign ratings reflects moderate uncertainty about support
given that GPB is not directly, majority owned by the state and
is of limited strategic importance for Gazprom.  GPB neither has
the dominant market shares of Sberbank (BBB/Stable) nor the
policy role of Vnesheconombank (BBB/Stable), entities for which
Fitch equalises their Support Rating Floors with the sovereign.

At end-2013 GPB was the third-largest banking group in the
Russian Federation, although its market shares were a moderate
6.4% of sector loans and 7.4% of deposits.  The bank focuses
primarily on commercial banking services for large domestic
corporates.  A significant part of its balance sheet relates to
acquisition financing and proprietary non-financial investments,
predominantly in the natural resources and industrial sectors.

Quasi-sovereign entities directly own a significant, albeit
minority, 45.7% combined stake in the bank which is held by
Gazprom (35.5%) and Vnesheconombank (10.2%).  Supervision remains
tight with five of 12 board members currently representing
Gazprom (including the chairman Alexei Miller, CEO of Gazprom.)
and one representing VEB.

Rating Sensitivities - Gazprombank's Idrs, National Rating,
Support Rating And Support Rating Floor

The support-driven ratings could come under downward pressure if
there is a marked reduction in the stake owned by quasi-sovereign
entities and/or if the links between the bank and the Russian
authorities weaken significantly.  A downgrade of the sovereign
rating would likely be matched by a downgrade of the bank's
ratings.  Upgrade potential for the ratings is currently limited.

Key Rating Drivers - Gazprombank's Viability Rating

GPB's 'bb' Viability Rating (VR) reflects the bank's prominent
market positions and generally lower-risk lending business
focused on larger and stronger Russian corporates and secured
retail products, as well as currently comfortable liquidity.

However, the VR also considers high single-name and sector
concentrations in loans, only moderate capitalization and loss
absorption capacity, modest core profitability and considerable
exposure to non-banking assets. Fitch believes that the credit
profile is also weakened by directed lending and investing,
particularly in the interests of the state, Gazprom, and other
affiliated parties, the risks of which may not always be
adequately reflected in loan pricing, in Fitch's view.

The bank's low delinquency rate at end-9M13, namely its non-
performing (overdue by more than 90 days) loans at 1.0% of gross
loans, was supported by a recently strong economic environment as
well as by favorable repayment terms for some of the higher-risk
loans.  Many borrowers also benefit from solid export revenues
that should improve as a result of the recent moderate
devaluation of the rouble.

Downside risks for asset quality stem from the vulnerable metals
and mining sector exposure at 140% of Fitch Core Capital (FCC) at
end-9M13.  Some of this may be exposed to some form of debt
restructuring, in Fitch's view.  Part of any related credit
losses could, however, be absorbed by the state to avoid
operational disruption of the company given its high social and
economic importance.

The risks associated with GPB's loans to Ukrainian companies
totaling 50% of FCC at end-2013 were for the most part offset by
high-quality collateral, although performance of this collateral
may ultimately depend on the broader development of relations
between Russia/Gazprom and Ukraine.  In a worst case scenario,
Fitch expects the bank to be able to turn to Gazprom for at least
partial support in relation to these exposures.

The risk profile remains burdened by GPB's exposure to poorly
performing non-banking subsidiaries (acquisition costs and
intragroup loans equalled to 55% of FCC at end-9M13) and illiquid
minority equity stakes (20% of FCC).  These exclude GPB's 100%
stake in Gazprom-Media Holding (BB/Stable; 22% of FCC) which has
performed solidly.  The risks of the trading equity book (15% of
FCC) are mitigated somewhat by the predominance of blue chips and
reasonable single-name diversification.

Liquidity risks are currently moderate due to solid liquid assets
(equal to 34% of customer deposits at end-2013), stable related-
party and granular third-party deposits, a comfortable debt
repayment schedule, established access to domestic and
international capital markets and the potential benefits of
support.  Wholesale funding comprised a significant 31% of
liabilities at end-9M13, although this is to a large degree
attributable to the central bank's secured funding facilities.

Capitalization is moderate relative to the risk profile given the
ratio of FCC/weighted risks at 8.6% at end-9M13; this was
somewhat lower than the Basel II Tier I ratio of 10.1% mainly due
to deduction of deferred tax assets.  The total regulatory
capital position (11.4% at end-2013) was sufficient to sustain a
moderate 2.5ppts increase in provision rates in the loan book
before the capital ratio would have reached the minimum required
level of 10%.  Capital erosion has resulted from loan growth
recently exceeding internal capital generation (non-annualized at
21.6% and 7.1%, respectively, for 9M13).

Profitability is constrained by relatively narrow net interest
margin, which stood at 3.3% in 9M13, reflecting low rates on many
of the larger corporate exposures.  Performance slightly weakened
in 9M13, with pre-impairment profit declining to 1.8% of average
assets from 2.3% for 2012 as a result of lower trading gains.

Rating Sensitivities - Gazprombank's VR

The VR could benefit from an improvement of asset quality through
a reduction in concentration levels and lesser exposure to
higher-risk projects; a reduction in non-core assets; and a
stronger capital base.  Weaker performance of some of the bank's
larger exposures as a result of idiosyncratic risks and/or a
deterioration in the broader operating environment, could result
in a downgrade.

Key Rating Drivers And Sensitivities - Gazprombank's Senior
Unsecured Ans Subordinated Debt Ratings

GPB's senior unsecured debt ratings are aligned with the bank's
Long-term IDR of 'BBB-' and the local-currency issue ratings are
also aligned with the National Long-term rating of 'AA+(rus)'.
The 'old-style' subordinated debt rating, at 'BB+', is notched
down once from the bank's Long-term IDR, as Fitch believes that
these issues would likely continue to benefit from state support.
Both ratings would likely change in tandem with the Long-term

The 'new-style' subordinated debt (with principal/ coupon write-
down feature) rating, at 'BB-', is notched down once from the
bank's VR; this incorporates zero notches for incremental non-
performance risk relative to the VR and a notch for higher loss

Fitch has also assigned a final 'BBB-' rating to the bank's
USD750 million Series 16 senior unsecured loan participation
notes issue maturing on September 5, 2019 and carrying the coupon
of 4.96% payable semi-annually.

Rating Drivers - Gazprombank (Switzerland) Ltd's Ratings

GPBS's Long-term IDR is aligned with that of its parent,
reflecting Fitch's view of the high probability that support from
GPB would be forthcoming to the subsidiary, if needed.

Fitch classifies GPBS as a core subsidiary, based on GPB's 100%
ownership and supervision over the bank, the high level of
operational integration between parent and the subsidiary, GPBS's
important role for the parent's servicing of its core clients
operating in Europe and the high reputation risk for GPB from a
default of GPBS, given GPB's considerable capital markets funding
and plans to expand further on international markets.

The ratings are also supported by common branding and the small
size of the subsidiary (less than 2% of the group's consolidated
total assets at end-2013) making it fairly easy to support.  That
said, the small size means there is no cross-default linkage as
GPBS does not qualify as a 'material subsidiary' under GPB's bond
covenant definition.  Furthermore, full support has not been yet
tested in a real stress scenario, although GPB previously helped
GPBS to restructure its balance sheet shortly after acquisition
in 2009.

Rating Sensitivities - Gazprombank (Switzerland) Ltd's Ratings

GPBS's Long-term IDR will likely change in tandem with the
parent's Long-term IDR.  Downward pressure could arise if there
is a prolonged delay of support when needed, if the parent's
propensity to provide assistance weakens, or if the bank is sold
to a lower-rated institution.  However, Fitch views these
scenarios as unlikely.

The ratings actions were as follows:


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

GPB Eurobond Finance plc:

-- Senior unsecured debt Long-term rating: affirmed at 'BBB-'
-- 'Old-style' subordinated debt rating: affirmed at 'BB+'
-- 'New-style' subordinated debt rating: affirmed at 'BB-'

Gazprombank (Switzerland) Ltd.:

-- Long-term IDR: affirmed at 'BBB-'; Outlook Stable
-- Short-term IDR: affirmed at 'F3'
-- Support Rating: affirmed at '2'
-- Senior unsecured debt Long-term rating: affirmed at 'BBB-'

KRAYINVESTBANK: Fitch Affirms 'B+' Issuer Default Rating
Fitch Ratings has affirmed Krayinvestbank's (KIB) Long-term
Issuer Default Rating (IDR) at 'B+' with a Stable Outlook.  At
the same time, the agency has maintained the bank's 'b-'
Viability Rating (VR) on Rating Watch Negative (RWN).

Key Rating Drivers: IDRs, Support Rating, National Rating and
Senior Debt Rating

KIB's 'B+' Long-term IDR and '4' Support Rating reflect the
limited probability of support that KIB may receive if needed
from the Krasnodar Region of Russia (KR; BB+/Stable), which
directly owns a 98% stake in the bank.  Fitch's view of the
propensity to provide support is based on KR's majority ownership
and a track record of assistance to date in the form of both
liquidity support and the provision of capital.

At the same time, Fitch views the probability of support from
KR's administration as only limited given KIB's moderate
importance for the region's banking system and significant
concerns about the bank's sizeable exposure to development loans
and other non-core assets (roughly 2.5x Fitch core capital (FCC)
at end-2013).  In the agency's opinion, these have questionable
recoverability and may largely be related in some way to
officials within the current regional administration and/or the
bank's management, thereby suggesting weaknesses in corporate
governance and potentially making support more costly and less
politically acceptable.

Rating Sensitivities: IDRs, Support Rating, National Rating And
Senior Debt Rating

Downside pressure on KIB's support-driven ratings could arise
from any major weakening in the relationship between KR and the
bank, for example as a result of changes in key senior regional
officials.  The IDRs could also be downgraded as a result of a
downgrade of KR's ratings.

KIB's Long-Term IDR could be upgraded if KIB's systemic
importance increases and the bank's corporate governance notably
improves, but Fitch views this as unlikely in the near to medium

Key Rating Drivers: VR

The 'b-' VR reflects KIB's lumpy loan book, high exposure to
construction and development sectors, moderate capitalization and
tight liquidity.  However, it also considers its comfortable
funding profile based on granular retail deposits.

The RWN on KIB's VR continues to reflect potential risks
resulting from KIB's RUB4.8 billion exposure (1.0x end-1H13 FCC)
to third party receivables (mostly promissory notes) with
questionable recoverability.  So far, Fitch has not obtained
sufficient information on these investments to take a view on
their quality and recoverability.  However, management expects to
restructure these exposures by end-1Q14, after which the agency
expects to obtain sufficient information to assess them.

At end-2013, KIB was highly exposed to real estate development
loans (RUB4.8 billion, 1.0x end-1H13 FCC) and investment property
(RUB2.7 billion, 0.5x end-1H13 FCC).  In Fitch's view, some of
the investment properties are reasonably valued, but half of the
exposures are higher risk residential properties at the initial
stage of construction, or industrial properties with questionable

KIB's reported non-performing loans (NPLs; loans 90 days overdue)
were a moderate 2.8% at end-2013, while a further 3.3% were
rolled over; NPLs and restructured loans combined were
comfortably 1.1x covered by loan impairment reserves (LIR).
However, Fitch emphasizes the high loan book concentration (the
20 largest exposures amounted to 68% of corporate loans at end-
2013, or 2.3x end-1H13 FCC) and development nature of the largest
exposures, most of which are at the initial stage of

In light of significant exposure to non-core assets and long-term
nature of the development loans, KIB's liquidity position is
vulnerable, aggravated by the tight liquidity buffer covering
only 13% of end-2013 customer funding.  As a moderate mitigant,
KIB's exposure to third-party wholesale funding is limited, while
its customer funding (78% of total liabilities at end-2013) is
relatively sticky with a high share of granular retail deposits
(54% of total liabilities).

KIB demonstrated moderate growth of 16% in 2013, resulted in a
weakening of its capital position, with the total regulatory
capital ratio decreasing to 11.6% at end-2013 from 13.1% at end-
2012 due to poor internal capital generation (ROAE of 3.1% in
2013 according to national accounts).  Fitch understands that
KIB's further growth is restricted by its tight capital, which
would allow the bank to create additional LIR equal to only 3.4%
of the loan book.  In Fitch's view, the anticipated equity
injection of RUB1 billion, which management expects to be made by
end-1H14 (postponed from 2H13), will only have a temporary effect
given further moderate growth plans (KIB targets 11% loan growth
in 2014).

Rating Sensitivities: VR

The RWN on KIB's VR could be resolved with a downgrade if either
the third party receivables are replaced with poor quality
assets, or Fitch believes the risks associated with these
receivables are high.  Conversely, if the risks related to these
exposures are more moderate, KIB's VR could be affirmed at 'b-'.

Downward pressure on KIB's VR could also result from further
deterioration of asset quality and performance, resulting in
erosion of capital, or from growing exposure to development
projects and other non-core assets. Upside potential is limited.

The rating actions are as follows:

   -- Long-term foreign and local currency IDRs: affirmed at
      'B+'; Outlook Stable

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

   -- National Long-term Rating: affirmed at 'A-(rus)'; Outlook

   -- Viability Rating: 'b-', maintained on RWN

   -- Support Rating: affirmed at '4'

   -- Senior unsecured debt Long-term rating: affirmed at 'B+';
      Recovery Rating 'RR4'

   -- Senior unsecured debt National rating: affirmed at

ORIENT EXPRESS: Fitch Assigns 'B+' IDR; Outlook Negative
Fitch Ratings has assigned Russia-based Orient Express Bank (OEB)
a Long-term Issuer Default Rating (IDR) of 'B+' with a Negative


OEB's Long-term IDRs are based on its Viability Rating (VR) of
'b+' reflecting (i) OEB's weak asset quality, (ii) moderate
capitalization compared with retail peers and recently weak
internal capital generating capacity.  The Negative Outlook
reflects the recent significant deterioration in asset quality
and limited evidence that this has stabilized, combined with the
bank's limited capacity to absorb additional losses.  At the same
time, the ratings positively consider OEB's sound pre-impairment
results, subdued risk appetite, as reflected in below market
growth rates, balanced funding mix and currently comfortable

OEB's credit losses were sharply up in 2013 as the non-performing
loans (NPLs; 90 days overdue) origination rate (increase in NPLs
plus write-offs during reported period) climbed to 15.4% of
average performing loans in 9M13 from only 6.4% in 2012.  This
reflected the general deterioration of the consumer finance
market and seasoning of the rapidly expanded loan book, coupled
with slower portfolio growth (11% in 9M13 vs 66% in 2012).  The
bank's pre-impairment profit, although solid at 93% of average
equity, implied a breakeven NPL origination rate of only 14.3% of
loans, slightly below actual credit losses.  This suggests that
the bank would have been loss-making in 9M13 had it fully
reserved new NPLs.

OEB is predominantly deposit-funded (84% of end-3Q13
liabilities), with retail deposits equal to 71% of total
liabilities.  About half of this amount falls under the deposit
insurance system, contributing to funding stability.  The bank is
gradually shifting its funding structure to a larger proportion
of wholesale current accounts in an effort to optimize funding
costs, but retail deposits are likely to remain the main source
of funds. Refinancing risk is limited in the medium term due to
the small proportion of wholesale debt in the funding mix, and as
most of this matures after 2015.

Liquidity is adequate and underpinned by OEB's quickly amortizing
loan book.  The cushion of highly liquid assets covered 16% of
total customer funding at end-3Q13, while monthly loan repayments
generated cash equivalent to a further 9% of customer accounts.
OEB's Fitch core capital (FCC) ratio declined to a moderate 12.4%
at end-3Q13 from 14.1% at end-2012 due to OEB's weak internal
capital generation.  The bank's regulatory capitalization is
slightly pressured (albeit to a lesser extent than at peers) by
higher regulatory risk weights on high-yield unsecured retail
loans, but was supported by a subordinated debt placement in
4Q13, which brought the regulatory total capital adequacy ratio
to 13.7% at end-2013.  However, Fitch views OEB's capitalization
as only moderate given the current pressure on asset quality.


The Support Rating of '5' and Support Rating Floor of 'No Floor'
reflect Fitch's view that support from the bank's shareholders or
the Russian state cannot be relied upon, in the latter case due
to OEB's low systemic importance.


The ratings could be downgraded if further deterioration of asset
quality causes credit losses to consistently exceed OEB's
breakeven loss rate.  Conversely, a longer track record of asset
quality stabilization together with still solid pre-impairment
profitability could help stabilize the ratings at their current


OEB's senior unsecured debt is rated in line with its Long-term
IDRs and National Rating (for domestic debt issues), reflecting
Fitch's view of average recovery prospects, in case of default.
Any changes to OEB's Long-term IDRs and National Ratings would
likely impact the debt ratings.  Debt ratings could also be
downgraded in case of marked increase in the proportion of retail
deposits in the bank's liabilities, resulting in greater
subordination of bondholders.  In accordance with Russian
legislation, retail depositors rank above those of other senior
unsecured creditors.

The rating actions are as follows:

   -- Long-term foreign currency IDR assigned at 'B+'; Outlook

   -- Short-term foreign currency IDR assigned at 'B'

   -- Long-Term local currency IDR assigned at 'B+'; Outlook

   -- National Long-Term Rating assigned at 'A-(rus)'; Outlook

   -- Viability Rating assigned at 'b+'

   -- Support Rating assigned at '5'

   -- Support Rating Floor assigned at 'NF'

   -- Senior unsecured debt Long-term Rating: assigned at 'B+';
      Recovery Rating '4'

   -- Senior unsecured debt National Long-term Rating: assigned
      at 'A-(rus)'

TATTELECOM OJSC: Fitch Affirms 'BB' LT Issuer Default Rating
Fitch Ratings has affirmed Russia-based OJSC Tattelecom's
(Tattel) Long-term Issuer Default Rating (IDR) and senior
unsecured rating at 'BB' and its Short-term IDR at 'B'.  The
Outlook on the Long-term IDR is Stable.

The ratings reflect OJSC Tattelecom's well-established positions
as a fixed-line incumbent in the Russian Republic of Tatarstan
(BBB/Stable), with dominant shares in the traditional telephony
market.  It quickly became the largest broadband player in its
operating territory, and made a successful entry into pay-TV.
The company launched mobile service in 2013, diversifying its
product portfolio.  They also reflect the company's small scale
and weak parental support.


Strong Market Shares

Tattel has been able to successfully defend and even expand its
market shares, most notably to above 50% in the broadband
segment, in spite of a congested competitive environment.  Fitch
believes the company is likely to continue eroding its peers'
market shares, capitalizing on its strong-quality network and a
dedicated regional focus.

Tattel's established local clout and the lack of unbundling
regulation in Russia have enabled the company to defend its
market against its financially stronger and larger national
Mobile Service Strategically Logical

Tattel's recent entry into the mobile segment is complimentary to
its existing wire-line operations.  Strategically, it enables the
company to become the sole quad-play operator although the merits
of a quad-play service in Russia remain untested.  Infrastructure
synergies with the existing network should make a rapid roll-out
of mobile service cost-efficient.  Equally, the fixed-line
network's large throughput capacity will allow Tattel to offer
its customers quality data services.

Modest Leverage; Strong FCF

Fitch expects Tattel's leverage in 2013 to have remained largely
unchanged from 2012's 0.8x net debt/EBITDA and 1.1x funds from
operations (FFO) adjusted net leverage.  A rapid mobile roll-out
will require substantial capex and raise leverage.  However,
Fitch expects FFO-adjusted net leverage to remain well below the
downgrade trigger of 2.25x.

A fiber upgrade project was completed in 2013, which should
increase cash flows from the wire-line segment and pave the way
for rapid deleveraging.  Substantial mobile investments will help
swiftly turn this segment EBITDA-positive, with positive
implications for leverage.  The company's dividend policy of
paying 30% of net profit by Russian accounting standards and the
management's track record of high capex efficiency will be
supportive of deleveraging flexibility.

Small Size a Hindrance

The company's small size could limit its financial options.  Even
the smallest bond issue by Russian market standards creates a
substantial bullet refinancing exposure on the company's balance
sheet.  Tattel has predominantly relied on bank financing, where
size is less of an issue.

Weak Parental Support

Fitch considers operational and strategic ties between the
company and its controlling shareholder OJSC Svyazinvestneftekhim
(SINEK, BBB/Stable) as weak.  Tattel's rating therefore primarily
reflects its standalone credit profile.  However, it is likely
that SINEK would provide liquidity or lobbying support, if

Rating Sensitivities

A downgrade could be triggered by a rise in leverage to above
2.25x FFO adjusted net leverage on a sustained basis.  Tight
liquidity and cash flow pressures driven by revenue and market
share losses, particularly in the broadband segment, may also be
negative for the ratings.

Rating upside is constrained by the small size of the company,
its lack of geographical diversification, and limited access to
capital markets.


BANCAJA 10: S&P Lowers Rating on Class C Notes to 'D'
Standard & Poor's Ratings Services lowered to 'D (sf)' from 'CCC
(sf)' its credit rating on Bancaja 10, Fondo de Titulizacion de
Activos' class C notes.

The downgrade follows the class C notes' interest payment default
on the Feb. 24, 2014 interest payment date (IPD).

As S&P noted in its previous review on March 15, 2012, its rating
on the class C notes reflects the proximity of the interest
deferral trigger.

The trustee's data for the January 2014 report shows that
cumulative defaults account for 7.71% of the closing portfolio
balance, which is above the documented 7.40% interest deferral
trigger for the class C notes.

The class C notes defaulted on their interest payment on the
February 2014 IPD, following the breach of the interest deferral
trigger and a lack of available liquid funds.  As S&P's ratings
in this transaction address the timely payment of interest and
the ultimate payment of principal, it has lowered to 'D (sf)'
from 'CCC (sf)' its rating on the class C notes.

Bancaja 10 is a 2007-vintage securitization of first-ranking
mortgages secured on owner-occupied residential properties in
Spain. Bankia S.A. originated and services the mortgages.

CODERE SA: Insolvency Law Changes Support Restructuring Plan
Katie Linsell at Bloomberg News reports that Codere SA creditors
said changes to Spain's insolvency laws support its offer to
restructure EUR1.1 billion (US$1.5 billion) of debt that was
rejected by the company.

New bankruptcy rules came into effect on March 7, making it
easier for troubled companies to avoid liquidation, Bloomberg

Bloomberg relates that Codere's bondholders wrote in a letter to
the company's board of directors on Wednesday the legislation
encourages debt-for-equity swaps by threatening to make
shareholders liable if they "unreasonably withhold" consent.

An amended final offer will be submitted by creditors in the
coming days that will include changes prompted by the new law,
Bloomberg says, citing the letter, which was sent by investors
representing about 50% of Codere's euro and dollar notes.

Bondholders are demanding control of 82.5% of Codere's equity
while shareholders, led by the founding Martinez Sampedro family,
are offering as little as 20% of the manager of betting parlors
and race tracks in Spain, Italy and Latin America, Bloomberg

Codere SA is a Madrid-based gaming company.  It operates betting
shops and race tracks from Italy to Argentina.

Codere sought preliminary creditor protection on Jan. 2, giving
the company four months to agree a restructuring plan or start
insolvency proceedings.

ISOLUX CORSAN: S&P Assigns 'B' CCR; Outlook Stable
Standard & Poor's Ratings Services said that it had assigned its
'B' long-term and 'B' short-term corporate credit ratings to
Spain-based engineering and construction company Isolux Corsan
S.A.  The outlook is stable.

At the same time, S&P assigned a 'B' issue rating to Isolux's
proposed EUR400 million senior notes.  The '4' recovery rating on
these notes indicates S&P's expectation of average (30%-50%)
recovery in the event of a payment default.

The rating on Isolux reflects S&P's assessment of the company's
business risk profile as "fair" and financial risk profile as
"highly leveraged," as S&P's criteria define these terms.  This
predominantly reflects the company's limited track record in
terms of a robust and stable operating performance and S&P's
assessment of its liquidity as "less than adequate."

Isolux is an engineering and construction (E&C) company
incorporated in Spain, mainly focusing on the construction of
large infrastructures and running concessions of toll roads,
energy transmission lines, and other infrastructure objects.

The stable outlook reflects S&P's expectation that Isolux's
adjusted debt-to-EBITDA leverage ratio, pro forma the
transaction, would be about 7.5x-8.0x at year-end 2014.  S&P also
assumes that the company will generate negative FOCF for the
current financial year, but will break even in 2015.  From 2015,
S&P expects a steep decrease in capital spending, implying some
restored ability to see a gradual debt reduction.

If Isolux were to build a longer track record with positive FOCF,
leading to stronger credit metrics on a sustainable basis -- such
as adjusted FFO to debt in the 8-12% range -- we could potential
raise the ratings.  Furthermore, S&P understands that changes in
International Financial Reporting Standards in the coming year
may lead to a large share of concessions debt no longer being
consolidated.  When this effect is fully visible in the audited
accounts, it may be positive for S&P's assessment of the
company's financial risk profile if it stopped consolidating the
concessions.  However, it will likely be offset by a negative
revision of the business risk assessment, as S&P would then
include only dividends from concessions in its adjusted earnings
base, rather than the fully consolidated earnings, as is
currently the case.

S&P could lower the ratings if weaker-than-expected operating
performance or an unforeseen event, such as cost overruns or
execution issues, were to push adjusted debt-to-EBITDA leverage
above 10x or if capital expenditures were much higher than S&P
currently expects.  S&P could also lower the ratings if liquidity
weakened to the extent that we no longer viewed it as "less than
adequate," or in the case of covenant pressure.


UKRAINE: Senate Foreign Relations Committee Approves Aid
David Lerman at Bloomberg News reports that the Senate Foreign
Relations Committee approved an aid package for Ukraine that will
face resistance from Republicans over changes in U.S. funding for
the International Monetary Fund.

On a 14-3 vote, the Democratic-controlled panel approved a bill
that would give Ukraine US$1 billion in loan guarantees that it's
seeking as Russian forces occupy the Crimean peninsula, Bloomberg

According to Bloomberg, it also would authorize sanctions against
Ukrainians and Russians deemed responsible for corruption and

U N I T E D   K I N G D O M

EUROSAIL-UK 2007-6NC: S&P Cuts Ratings on 3 Note Classes to 'D'
Standard & Poor's Ratings Services lowered to 'D (sf)' from 'CCC
(sf)' and removed from CreditWatch negative its credit ratings on
Eurosail-UK 2007-6NC PLC's class B1a, C1a, and D1a notes.  At the
same time, S&P has placed on CreditWatch positive its 'B (sf)'
ratings on the class A2a and A3a notes.

On Jan. 23, 2014, S&P placed on CreditWatch negative its ratings
on the class B1a, C1a, and D1a notes as the proposed
restructuring would involve write-downs on them.

The rating actions follow the Feb. 11, 2014 noteholders' approval
of the Eurosail-UK 2007-6NC Jan. 8, 2014 restructuring proposal,
with the restructuring being conditional on the successful sale
of the remaining claims against Lehman Brothers' bankruptcy
trustee. On Feb. 21, 2014, the claims were sold to the winning
bidder for US$32,875,995.  Including prior distributions, the
receipts from the defaulted swap totaled US$90,592,456, or 62.48%
of the stipulated total claim.

The restructuring, among other things:

   -- Converted (at the prevailing exchange rate) the sale
      receipts into GBP54,447,489;

   -- Removed the foreign exchange rate risk by converting the
      euro-denominated notes into British pound sterling-
      denominated notes (at the prevailing exchange rate); and

   -- Included the write-down of the class B1a, C1a, and D1a
      notes by 10.14% each, equating to a total junior note
      write-down of GBP5.8 million.

On March 5, 2014, S&P received a notice that the restructuring
became effective, which resulted in amendments to the existing
debt documentations' terms and conditions, which included, among
other things:

   -- A decrease of the reserve fund to GBP1.786 million from
      GBP9.307 million;

   -- An extraordinary paydown amount of GBP52.7 million to the
      class A3a, B1a, C1a, and D1a noteholders;

   -- The establishment of a liquidity reserve of GBP1.786
      million; and

   -- The re-collateralization of the transaction through write-
      downs of the junior classes of notes, effective on the
      December 2013 interest payment date.

The issuer applied the total proceeds from the claims and reserve
fund reduction (GBP63.8 million) toward restructuring costs, the
creation of a liquidity reserve, and a one-time payout to
noteholders -- including a GBP6 million payout to residual

Because the class B1a, C1a, and D1a notes suffered principal
losses due to the write-downs (GBP2.52 million, GBP1.80 million,
and GBP1.51 million, respectively), S&P has lowered to 'D (sf)'
from 'CCC (sf)' and removed from CreditWatch negative its ratings
on these classes of notes.  Although 100% of the junior
noteholders approved the write-downs, they reduced the original
terms of the noteholders' investment.

The senior classes of notes did not incur write-downs and the
conversion occurred at a spot rate of GBP0.821 to EUR1.000.
Therefore, S&P do not view the amendment to the class A2a and A3a
notes as a distressed restructuring.  Following the conversion,
the transaction is no longer exposed to foreign exchange rate
risk, which was the main constraint on our ratings on the class
A2a and A3a notes.

Although the available credit enhancement for all classes of
notes following the restructuring appears lower than before the
restructuring, the credit enhancement in the new structure is
effectively higher, because there is no undercollateralization in
the transaction.

S&P has therefore placed on CreditWatch positive its 'B (sf)'
ratings on the class A2a and A3a notes.

In order to resolve these CreditWatch placements, S&P will
conduct a credit and cash flow analysis of the revised
transaction structure.

Eurosail-UK 2007-6NC is a U.K. residential mortgage-backed
securities (RMBS) transaction backed by mortgages originated
predominantly by Southern Pacific Mortgage Ltd. and Preferred
Mortgages Ltd., and to a lesser extent by London Mortgage Company
and Alliance & Leicester PLC.


Class             Rating
          To                  From

Eurosail-UK 2007-6NC PLC
GBP288.96 Million Mortgage-Backed Floating-Rate Notes

Ratings Placed On CreditWatch Positive

A2a       B (sf)/Watch Pos    B (sf)
A3a       B (sf)/Watch Pos    B (sf)

Ratings Lowered and Removed From CreditWatch Negative

B1a       D (sf)              CCC (sf)/Watch Neg
C1a       D (sf)              CCC (sf)/Watch Neg
D1a       D (sf)              CCC (sf)/Watch Neg

Stephanie Gleason, writing for The Wall Street Journal, reported
that the liquidators of Hellas Telecommunications (Luxembourg) II
SCA, which was once the third largest cellular service provider
in Greece, are suing its former private-equity owners TPG Capital
Management LP and Apax Partners LLP for what it calls "one of the
very worst abuses of the private equity industry."

According to the report, in a lawsuit filed March 13 with the
U.S. Bankruptcy Court in Manhattan, the Hellas liquidators
alleged that Apax and TPG carried out a "highly leveraged
acquisition of a pair of Greek businesses," and then siphoned
more than one billion euros ($1.36 billion) out of the companies.
The other company acquired, identified in the complaint, is Q-

Less than two months after that transfer, TPG and Apax disposed
of the company and its subsidiaries, "pocketing a windfall and
leaving behind an insolvent Company staggering toward
bankruptcy," the complaint said, the report cited.

"We have filed this lawsuit for the benefit of Hellas's estate
and its creditors to seek redress for one of the very worst
abuses in the private equity industry," the report also cited
Andrew Hosking, one of Hellas's U.K. liquidators, as saying in a
statement. "The defendants systematically pillaged Hellas's
assets, by piling on debt, extracting exorbitant management and
consulting fees, and making massive and improper distributions to

TPG spokesman Owen Blicksilver told the Journal that "the suit is
completely without merit." Apax didn't immediately responded to
request for comment, the Journal said.

                  About Hellas Telecommunications

In February 2007, Hellas Telecommunications was purchased from
TPG Capital LP and Apax Partners by the Italian
telecommunications giant Weather Group.  The Company later
suffered liquidity problems and commenced administration
proceedings in the U.K. in November 2009.  The administrators
sold 100% of the shares of Wind Hellas to the existing owners,
the Weather Group.  An order placing the Company into liquidation
was entered on Dec. 1, 2011.

Andrew Lawrence Hosking and Carl Jackson, as Joint Liquidators
petitioned for the Chapter 15 protection for the Company (Bankr.
S.D. N.Y. Case No. 12-10631) on Feb. 16, 2012.  Bankruptcy Judge
Martin Glenn presides over the case.

The Debtor estimated assets and debts of more than $100,000,000.
The Debtor did not file a list of creditors together with its

The petitioners are represented by Howard Seife, Esq., at
Chadbourne & Parke LLP.

MERGERMARKET USA: S&P Assigns 'B' CCR; Outlook Stable
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating to global financial information services
provider MergerMarket USA, Inc. (MergerMarket Group).  The
outlook is stable.

At the same time, S&P assigned an issue rating of 'B' to the U.S.
dollar-equivalent GBP164.9 million first-lien term loan and to a
US$40 million-equivalent, multiple-currency, five-year revolving
credit facility (RCF).  The recovery rating on these loans is
'3', reflecting S&P's expectation of meaningful (50%-70%)
recovery in the event of a payment default.

In addition, S&P assigned an issue rating of 'CCC+' to the
GBP64.3 million second-lien term loan.  The recovery rating on
this loan is '6', reflecting S&P's expectation of negligible (0%-
10%) recovery in the event of a payment default.

All of the above ratings are in line with the preliminary ratings
that S&P assigned on Jan. 17, 2014.

The ratings on MergerMarket Group primarily reflect S&P's view of
the group's financial risk profile as "highly leveraged," as its
criteria define the term, owing to its leveraged capital
structure and ownership by the private equity firm BC Partners.
Following the acquisition of MergerMarket Group by BC Partners
from Pearson PLC for GBP382 million, the group's Standard &
Poor's-adjusted debt includes GBP229 million of term loans and
over GBP164.9 million of payment-in-kind (PIK) shareholder loans
and preference shares.

Mitigating the group's highly leveraged capital structure is
S&P's assessment of its liquidity as "adequate."  This assessment
is supported by MergerMarket Group's lack of material debt
amortization requirements, limited capital expenditure (capex),
and limited working capital needs.  S&P believes that positive
free operating cash flows will enable the group to gradually
reduce its debt through ongoing cash sweeps.  That said, this is
unlikely to meaningfully reduce the group's total adjusted
leverage because of the PIK nature of the shareholder loans.
Although these shareholder loans are outside the banking group,
S&P treats them as debt in our adjusted credit metrics.

"We assess MergerMarket Group's business risk profile as "weak,"
reflecting its small scale, which leaves it vulnerable to changes
in the competitive landscape.  Our assessment is also based on
the group's reliance on two key products, MergerMarket and
Debtwire, which account for approximately two-thirds of invoiced
sales.  On the positive side, we also incorporate the firm's
market leadership in the niche markets of merger and acquisition
(M&A) news, credit news, and intelligence services.  The group's
niche focus means that it has limited direct competition
globally. MergerMarket Group also benefits from a loyal customer
base operating in different segments of the financial services
industry, with renewal rates of over 95%.  We anticipate that
MergerMarket Group should continue to post moderate revenue and
EBITDA growth over the next few years, based on the increase in
its global subscriber base.  We also consider that the
specialized nature of MergerMarket Group's offerings will
somewhat guard it from direct competition from larger players in
the global financial data, information, and analytics market,"
S&P said.

S&P's base-case operating scenario for MergerMarket Group

   -- Mid-to-high single-digit top-line growth, based on a
      growing subscriber base;

   -- EBITDA growth fueled by operating efficiencies and top-line
      growth, which, combined with moderate capex, will result in
      positive free operating cash flow; and

   -- Excess cash of around GBP10 million, which will be used to
      pay down the first-lien term loan.

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

   -- Standard & Poor's-adjusted debt to EBITDA of around 12x
      following the transaction.  On a fully adjusted basis, S&P
      do not see leverage decreasing meaningfully due to the PIK
      nature of the shareholder loans.

   -- Excluding the shareholder loan, MergerMarket Group's
      adjusted leverage ratio of about 7x, according to S&P's
      projections.  Based on S&P's forecasts, this could decrease
      to about 6x over the next two years.

   -- EBITDA cash interest coverage of around 2.3x (1x adjusted
      EBITDA interest coverage) in financial 2014.

The stable outlook mainly reflects S&P's view that MergerMarket
Group should continue to post moderate revenue and EBITDA growth
over the next few years, based on its business model's favorable
dynamics.  S&P assumes that the competitive landscape will not
change materially and that the group will maintain "adequate"
liquidity.  S&P believes that positive free operating cash flows
will enable the group to gradually reduce its debt through
ongoing cash sweeps.  That said, this is unlikely to meaningfully
reduce total adjusted leverage due to the PIK nature of the
shareholder loans.

S&P could lower the ratings if MergerMarket Group does not grow
its revenue and EBITDA, or if it increases its spending, leading
to negative free cash flow or weakened liquidity.  Specifically,
S&P could lower the ratings if EBITDA cash interest coverage
drops to less than 1.5x.  More direct and persistent competition
from larger players in the global financial data, information,
and analytics market could also cause S&P to lower its assessment
of the group's business risk profile, potentially leading to a

Currently, S&P sees the likelihood of an upgrade as limited
because of Mergermarket Group's highly leveraged capital
structure and its expectation that adjusted total leverage
(including shareholder loans) will remain high.  Notwithstanding
the positive free operating cash flows and a certain amount of
revenue growth built into our base-case scenario for the group,
any meaningful debt deleveraging will be unlikely in the near
term, due to the PIK nature of the shareholder loans.

NATIONWIDE CORE: Fitch Assigns BB+ Rating to Tier 1 Capital Secs.
Fitch Ratings has assigned Nationwide Building Society's
(A/Stable/F1/a) GBP1 billion resetting perpetual contingent
convertible additional Tier 1 capital securities (the notes) a
'BB+' final rating.  The rating is in line with the expected
rating assigned on February 28, 2014.

Key Rating Drivers

The notes are additional Tier 1 instruments with fully
discretionary interest payments and are subject to conversion
into Nationwide Core Capital Deferred Shares (CCDS) on breach of
a 7% CRD IV common equity Tier 1 ratio (either consolidated or
solo), which is calculated on a 'fully loaded' basis.

The securities are rated five notches below Nationwide's 'a'
Viability Rating (VR), in accordance with Fitch's criteria for
"Assessing and Rating Bank Subordinated and Hybrid Securities"
(dated January 31, 2014).  The notes are notched twice for loss
severity to reflect the conversion into CCDS on breach of the
trigger, and three times for non-performance risk.

The notching for non-performance risk reflects the instruments'
fully discretionary interest payment, which Fitch considers the
most easily activated form of loss absorption.  The issuer will
not make an interest payment if it has insufficient distributable
items or if it is insolvent.  The issuer will also be subject to
restrictions on interest payments if it fails to meet the
combined buffer capital requirements that will partly be phased
in from 2016.

Fitch has assigned 100% equity credit to the securities.  This
reflects their full coupon flexibility, the ability to be
converted into CCDS, which Fitch considers core capital well
before the bank would become non-viable, the permanent nature and
the subordination to all senior creditors.

Rating Sensitivities

As the securities are notched from Nationwide's VR, their rating
is mostly sensitive to any change in this rating.  The notes'
ratings are also sensitive to any change in their notching, which
could arise if Fitch changed its assessment of the probability of
their non-performance relative to the risk captured in
Nationwide's VR.  This could reflect a change in capital
management or flexibility or an unexpected shift in regulatory
buffers, for example.

NORD ANGLIA: Moody's Rates US$515MM Senior Secured Debt '(P)B1'
Moody's Investors Service has assigned provisional (P)B1 ratings
with stable outlook to the proposed US$515 million Senior Secured
Term Loan B and US$75 million senior secured revolving credit
facility to be issued by Nord Anglia Education Finance LLC. At
the same time, Moody's placed all of the Nord Anglia group's
ratings under review for upgrade, namely the B3 corporate family
rating (CFR), B3-PD probability of default rating (PDR), B3
rating on the US$490 million senior secured notes due 2017 and
the Caa2 rating on the US$150 million PIK toggle notes due 2018.

"The review has been prompted by Nord Anglia filing for an
initial public offering with the intention of raising up to
US$300 million, combined with a debt refinancing. IPO proceeds
combined with a new US$515 million, seven-year, Senior Secured
Term Loan B will be used to repay the company's existing US$490
million senior secured notes and US$150 million PIK toggle notes.
The transactions, if executed as planned, will result in slightly
lower leverage and lower interest expense," said Pieter Rommens,
Moody's lead analyst for the company.

Ratings Rationale

Moody's review will assess the conclusion of the IPO and the
resulting reduction of the company's debt and ongoing interest
expenses in helping the company improve its free cash flow. The
issuance of the new Senior Secured Term Loan B is contingent on
the successful execution of the IPO. The review is expected to be
completed shortly after the closing of the IPO and refinancing,
which are expected in late March.

Moody's considers that Nord Anglia benefits from stable,
predictable demand for its premium educational services product.
If the transactions go through as envisioned, the company will
have a high level of leverage, but this is balanced by favorable
demand dynamics, resiliency through economic cycles, and
predictable revenue streams. Moody's projects that adjusted debt
to EBITDA (after Moody's standard adjustments and pro forma for
the 2013 acquisition of World Class Learning) would be reduced
from about 7.5x at fiscal yearend 2013 to about 6.6x at FY2014
and about 5.7x for FY2015. Adjusted free cash flow to debt
should begin to become materially positive in FY2015. Reduced
interest expense should result in EBITDA less capex to interest
expense improving from about 1.3x in FY2014 to over 3.0x for

On the basis of a successful IPO, full refinancing of the
existing debt structure, and the issuance of the new Senior
Secured Term Loan B at the level of Nord Anglia Education Finance
LLC, Moody's anticipates upgrading the CFR and PDR by up to two
notches to B1 and B1-PD respectively. The rating of the new
Senior Secured Term Loan B to be issued by Nord Anglia Education
Finance LLC reflects this assumption.

The principal methodology used in these ratings was the Global
Business & Consumer Service Industry Rating Methodology published
in October 2010. Other methodologies used include Loss Given
Default for Speculative-Grade Non-Financial Companies in the
U.S., Canada and EMEA published in June 2009.

The company's headquarter is in Hong Kong, China, and operates 27
international premium schools, with more than 17,000 students
ranging in level from pre-school through to secondary school. NAE
also provides outsourced education and training contracts with
governments and curriculum products through its Learning Services
division. For the fiscal year ended 31 August 2013, NAE generated
pro forma revenues of US$415 million.

SOUTHAMPTON FOOTBALL CLUB: Ice Hockey Coach Becomes Chair
Agence France Presse reported that Premier League club
Southampton on March 13 named Canadian ice hockey guru Ralph
Krueger as their new chairman.

According to the report, the 54-year-old, who has never
previously worked in football, succeeds Nicola Cortese, who
stepped down in January.  Cortese, an Italian banker, left the
club after overseeing its resurrection from bankruptcy and the
English third tier to the Premier League.

A former ice hockey player and NHL coach, Krueger most recently
worked as a consultant to Canada's gold medal-winning ice hockey
team at the Winter Olympics in Sochi, the report related.


Author: Robert Sobel
Publisher: Beard Books
Softcover: 469 Pages
List Price: $34.95
Review by: Gail Owens Hoelscher

"Mere anarchy is loosed upon the world, the blood-dimmed tide is
loosed, and everywhere the ceremony of innocence is drowned; the
best lack all conviction, while the worst are full of passionate

What a terrific quote to find at the beginning of a book on a
financial catastrophe! First published in 1968. Panic on Wall
Street covers 12 of the most painful episodes in American
financial history between 1768 and 1962. Author Robert Sobel
chose these particular cases, among a dozen or so others, to
demonstrate the complexity and array of settings that have led
to financial panics, and to show that we can only make ;the
vaguest generalizations" about financial panic as a phenomenon.
In his view, these 12 all had a great impact on Americans of the
time, "they were dramatic, and drama is present in most
important events in history." They had been neglected by other
fiancial historians. They are:

William Duer Panic, 1792
Crisis of Jacksonian Fiannces, 1837
Western Blizzard, 1857
Post-Civil War Panic, 1865-69
Crisis of the Gilded Age, 1873
Grant's Last Panic, 1884
Grover Cleveland and the Ordeal of 183-95
Northern Pacific Corner, 1901
The Knickerbocker Trust Panic, 1907
Europe Goes to War, 1914
Great Crash, 1929
Kennedy Slide, 1962

Sobel tells us there is no universally accepted definition if
financial panic. He quotes William Graham Sumner, who died long
before the Great Crash of 1929, describing a panic as ".a wave
of emotion, apprehension, alarm. It is more or less irrational.
It is superinduced upon a crisis, which is real and inevitable,
but it exaggerates, conjures up possibilities, take away courage
and energy."

Sobel could find no "law of panics" which might allow us to
predict them, but notes their common characteristics. Most occur
during periods of optimism ("irrational exuberance?"). Most
arise as "moments of truth," after periods of self-deception,
when players not only suddenly recognize the magnitude of their
problems, but are also stunned at their inability to solve them.
He also notes that strong financial leaders may prove a
mitigating factor, citing Vanderbilt and J.P. Morgan.
Sobel concludes by saying that although financial panics have
proven as devastating in some ways as war, and while much
research has been carried out on war and its causes, little
research has been done on financial panics. Panics on Wall
Street stands as a solid foundation for later research on the


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

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

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

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


S U B S C R I P T I O N   I N F O R M A T I O N

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

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

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