TCREUR_Public/140423.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Wednesday, April 23, 2014, Vol. 15, No. 79

                            Headlines

F R A N C E

NEXANS: S&P Lowers CCR to 'BB-' Following Earnings Trough


G E R M A N Y

FISKER GMBH: Files for Liquidation in Delaware Court


G R E E C E

PIRAEUS BANK: S&P Affirms 'CCC/C' Ratings; Outlook Negative


I R E L A N D

SOLARPRINT: In Liquidation; April 30 Creditors' Meeting Set


I T A L Y

PROVINCIA ITALIANA: May 12 Expression of Interest Deadline Set
UNIPOL BANCA: S&P Affirms 'BB-/B' Ratings; Outlook Negative


N E T H E R L A N D S

WOOD STREET CLO II: S&P Lowers Rating on Class E Notes to CCC-


R O M A N I A

* ROMANIA: Parliament Approves New Insolvency Code


R U S S I A

UFA CITY: S&P Affirms 'BB-' LT Issuer Rating; Outlook Stable


U N I T E D   K I N G D O M

GREEN HILL: On Verge of Administration; Around 15 Jobs at Risk
SIT-UP: In Administration; 229 Jobs Affected
* UK: Number of SMEs in Financial Distress Up 22% in 1st Quarter


                            *********


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F R A N C E
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NEXANS: S&P Lowers CCR to 'BB-' Following Earnings Trough
---------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered its
long-term corporate credit rating on France-based cable
manufacturer Nexans S.A. to 'BB-' from 'BB'.  The outlook is
stable.

S&P also affirmed its 'B' short-term rating on the company.

At the same time, S&P lowered its issue ratings on Nexans'
various debt instruments to 'BB-' from 'BB'.  The recovery rating
on these instruments remains unchanged at '3', reflecting S&P's
expectation of meaningful (50%-70%) recovery in the event of a
payment default.

"The downgrade reflects our view that, over the coming years,
Nexans' earnings profile will remain subdued compared with those
of its U.S. and European peers.  We believe the company will
catch up with competitors from 2016, when the full benefits of
the restructuring plan are felt.  The downgrade also reflects our
base-case expectation that Nexans will generate negative free
operating cash flow (FOCF) in 2014-2015, on the back of high cash
outflows related to its restructuring plan and investments, which
we expect will total a high EUR200 million per annum over
2014-2015.  Our 'BB-' rating is in line with our 'bb-' anchor for
the company, our starting point in assigning a rating.  The
anchor reflects our assessment of the company's business risk
profile as "fair" and financial risk profile as "aggressive."  We
no longer apply a positive comparative rating analysis modifier
to the rating," S&P said.

The stable outlook reflects S&P's expectation that Nexans' EBITDA
will gradually recover in 2014-2015 from a trough in 2013 and
that the company will benefit from the first positive effects of
its restructuring initiatives from 2014.  This should
progressively lift its reported EBITDA margins back above 5% in
2014-2015.  S&P sees adjusted FFO to debt of about 12%-20% as
commensurate with the current rating.

A ratings upgrade could materialize if Nexans successfully
restored its profitability in line with its U.S. and European
peers, returned to positive FOCF generation, and improved its
adjusted credit ratios to a level commensurate with a
"significant" financial risk profile, including an adjusted FFO
to debt ratio above 20%.  Ratings upside would also be contingent
on the company being well on track with its restructuring and
investment plans.

Ratings downside could appear if Nexans' adjusted FFO-to-debt
ratio dropped below 12% without near-term prospects for recovery.
This could be due to increasing competition or lackluster demand,
as well as unsuccessful operational turnaround efforts.



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G E R M A N Y
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FISKER GMBH: Files for Liquidation in Delaware Court
----------------------------------------------------
Aaron Nathans at The News Journal reports that Fisker
Automotive's German subsidiary has filed for liquidation in a
Delaware bankruptcy court, in large part to keep anyone but
Wanxiang America from using the Fisker name.

Fisker GmbH had already shut down in preparation for Fisker
Automotive's bankruptcy filing in November, The News Journal
says, citing a filing by Fisker attorneys Peter J. Keane and
James Sprayregen on April 17.  The main company's assets were
sold to Wanxiang America, Inc. as part of a bankruptcy auction in
February, The News Journal discloses.

But Fisker GmbH was not included in the sale, The News Journal
notes.

Fisker GmbH was formed to provide international sales and
marketing services for Fisker Automotive.



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G R E E C E
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PIRAEUS BANK: S&P Affirms 'CCC/C' Ratings; Outlook Negative
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'CCC/C' long- and
short-term counterparty credit ratings on Greece-based Piraeus
Bank S.A. (Piraeus).  The outlook remains negative.

The rating action follows Piraeus' March 7 announcement that it
intends to raise EUR1.75 billion in new capital, mainly to
address its current capital needs, as determined by the Bank of
Greece, and to redeem the EUR750 million in Greek government
preferred securities that are currently included in Piraeus'
regulatory capital.

The affirmation reflects S&P's opinion that Piraeus will continue
to benefit from capital support from the Hellenic Financial
Stability Fund (HFSF), as well as liquidity support from the
European Central Bank (ECB).

"In our opinion, the EUR1.75 billion capital increase would not
provide a sufficient cushion against the large credit losses we
expect the bank to experience over the next two years.  As a
result, we anticipate that Piraeus will need additional capital
to meet the minimum regulatory ratio, which we define as Basel
III fully loaded core Tier 1, of 8% as of year-end 2015.  In our
view, the HFSF will remain willing and able to provide enough
capital support to Piraeus to restore the bank's minimum
regulatory capital ratio and we therefore expect Piraeus'
projected risk-adjusted capital ratio to remain sustainably above
3% in 2015.  As such, we continue to incorporate one notch of
short-term support into our rating on Piraeus to reflect the
potential for this capital support," S&P said.

S&P anticipates continued erosion of Piraeus' capital because of
the very high credit losses it expects from its large stock of
nonperforming assets (NPAs), as well as the high volume of what
S&P views as vulnerable restructured loans that the bank has not
classified as nonperforming.  Piraeus accumulated these loans
during the prolonged and intense economic downturn in Greece.

S&P anticipates that Piraeus will continue to struggle to
maintain asset quality in 2014 and 2015 as inflows of new NPAs
remain sizable.  This will lead to substantial additional credit
losses, in S&P's view.  S&P estimates credit losses will
materially exceed Piraeus' projected operating profits in 2014
and 2015.

S&P's view of the bank's future capital requirement also takes
into account the bank's weak capital quality, which reflects the
large amount of deferred tax assets the bank has accumulated in
the past three years.

The negative outlook reflects the possibility that S&P could
downgrade Piraeus over the next 18-24 months if it believed it
was going to default on its obligations because of insufficient
capital or liquidity support.

"We could lower the ratings on Piraeus if its access to the EU's
extraordinary liquidity support mechanisms, including the
emergency lending assistance discount facility at the ECB, and to
the ECB itself, were impaired for any reason.  This support
currently underpins the bank's capacity to meet its financing
requirements.  In this context, we anticipate that the pressure
on the bank's retail funding base caused by prolonged economic
recession in Greece may lead to further deposit outflows, despite
a mild recovery in recent months.  This could, in our opinion,
increase the bank's need for additional extraordinary liquidity
support from the European authorities," S&P noted.

S&P could also lower the ratings if it believed that the bank was
going to default on its obligations as a result of any
developments associated with an impairment in its solvency.

S&P could revise the outlook to stable if economic conditions in
Greece considerably improved and pressure on Piraeus' fragile
asset quality and financial profile eased, or if substantial
additional external support materialized.



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I R E L A N D
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SOLARPRINT: In Liquidation; April 30 Creditors' Meeting Set
-----------------------------------------------------------
The Mirror reports that SolarPrint is closing its doors.

According to The Mirror, SolarPrint's liquidation is a huge blow
to investors including Enterprise Ireland, which ploughed more
than EUR750,000 into the company.

The firm's other backers included private individuals, Custom
House Capital -- an investment house that collapsed in 2011 --
and Kernel Capital, The Mirror notes.

A creditors' meeting is due to take place on April 30, The Mirror
discloses.

SolarPrint is a Dublin-based solar technology firm.



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I T A L Y
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PROVINCIA ITALIANA: May 12 Expression of Interest Deadline Set
--------------------------------------------------------------
The Commissioners of the Insolvency Procedure "Amministrazione
Straordinaria" of Provincia Italiana della Congregazione dei
Figli dell'Immacolata Concezione (P.I.C.F.I.C.), in order to
execute the transfer plan of the latter approved by the Italian
Ministry of Economic Development, published a solicitation to
express interest to take over and carry on the businesses
currently managed by P.I.C.F.I.C. itself, assuming the
contractual relationships now in progress and through the
conveyance of the following business units according to Article
4-quater of Italian law decree n. 347/2003:

   -- the first allotment, defined "Hospitals," is composed of
      the hospital units IDI-IRCSS, including "Villa Paola" and a
      share of the issued stock of IDI Farmaceutici S.r.l., and
      "San Carlo di Nancy";

  -- the second allotment, defined as "R.S.A.". is composed of
     the nursing homes "Villa Santa Margherita" and Il Pigneto".

All the assets are better described in the transfer plan and in
the attached documents, filed in the Registry of the Bankruptcy
Court of Rome.

The Bid Regulation outlined by the Commissioners is composed of
three different stages: (1) invitation to express interest by the
closing date stated below; (2) access to the data room, which is
reserved to those who have already expressed of an interest and
whose interest has been deemed suitable by the Commissioners of
the Insolvency procedure in order to proceed to the next stages
of the bid; (3) drafting of legally binding offers to purchase.
The procedure of the sale of the businesses will be executed in
compliance with Article 63, Italian Legislative Decree n.
270/1999, hence offers will not be considered acceptable unless
they state: (a) a commitment to hire a minimum number of
employees who are already working in each branch of P.I.C.F.I.C.
with permanent contracts, as agreed upon in the plan, in
compliance with Article 47, Italian Law 428/1990; (b) a
commitment to take over and carry on, for at least two years, the
business activities and, for the same period of time, to maintain
the occupational level established during the final sale.  The
procedures and the terms provided for the invitation to express
interest and for the final sale are detailed in the Bid
Regulations published on the web site, www.picficinas.com.

At present, one applicant has already submitted a settlement
proposal to the Commissioners of the Insolvency Procedure,
concerning a possible composition with creditors (a
so-called "concordato") and, being previously authorized, has had
access to the data room.

Manifestations of interest are not binding offers, hence they
must not show any indication of price.  They must be received by
12:00 p.m. on May 12, 2014, by certified mail and/or by courier
at the following address:

          P.I.C.F.I.C.
          c/o Commissari Straordinari
          via Monti di Creta
          104-00167 Rome
          Fax No.: +390666464483

and be sent via certified-email to: provinciacfic@legalmail.it


UNIPOL BANCA: S&P Affirms 'BB-/B' Ratings; Outlook Negative
-----------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'BB-/B'
long- and short-term counterparty credit ratings on Italian
Unipol Banca SpA.  The outlook is negative.

The affirmation reflects S&P's view that while Unipol Banca's
solvency has weakened despite parental support and S&P expects
further substantial credit provisioning needs in 2014 and 2015,
ongoing parent support has improved the bank's funding profile.
S&P continues to consider Unipol Banca to be a "strategically
important" subsidiary of its parent, Unipol Gruppo Finanziario
SpA (UGF, BB+/Negative/--).  UGF group demonstrated its support
by the recent announcement that it will increase Unipol Banca's
capital by EUR100 million.  UnipolSai Assicurazioni
(BBB/Negative/--), UGF's main insurance subsidiary, together with
UGF, also provides Unipol Banca with EUR1.4 billion in ongoing
funding support.

Unipol Banca posted a heavy EUR300 million loss in 2013, driven
by high credit risk costs of EUR357 million and a EUR125 million
write-down of goodwill.  S&P thinks that Unipol Banca might post
modest losses in 2014 and 2015 due to further substantial credit
provisioning needs.  S&P now expects its projected risk-adjusted
(RAC) ratio before diversification adjustments for Unipol Banca
to remain at about 4.8% over the next 18-24 months.  Although the
capital increase from UGF group will allow Unipol Banca to
recover a regulatory core tier 1 ratio above 8%, S&P do not
consider it sufficient for Unipol Banca to maintain a RAC ratio
sustainably above the 5% that would allow S&P to assess the
bank's capital as "moderate" under its methodology.

Over the past three years, Unipol Banca has gradually improved
its funding profile, supported by what S&P sees as ongoing parent
support.  Increased cross-selling with UGF's insurance activity,
and stronger customer identification of the bank with UGF's
insurance franchise prompted the improvement.  The enlarged size
of UnipolSai following the finalization of the merger with
Fondiaria-SAI Group on Jan. 6, 2014, also gives it much greater
flexibility to increase its ongoing funding support to Unipol
Banca should the need arise.  S&P estimates that Unipol Banca's
net stable funding ratio exceeded 100% in 2013.  S&P has
therefore revised its assessment of Unipol Banca's funding to
"average" from "below average," in line with its methodology.

S&P's anchor -- the starting point for assigning a bank a long-
term rating -- for banks operating predominantly in Italy
including Unipol Banca remains at 'bbb-'.  S&P's assessment of
Unipol Banca's stand-alone credit profile (SACP) remains at 'b-'
as its downward assessment of capital and earnings was offset by
an improvement in S&P's assessment of funding, and its assessment
of all other factors has remained unchanged.

S&P's long-term rating on Unipol Banca includes three notches of
uplift for parental support, reflecting its view of UGF's
commitment to provide extraordinary support to Unipol Banca, if
needed, in a hypothetical stress situation.  S&P partly bases
this opinion on the strong reputational and financial links
between Unipol Banca and UGF.  These links include the shared
brand, the EUR0.8 billion in capital UGF has invested in Unipol
Banca, the EUR1.4 billion in funding provided to Unipol Banca by
UnipolSai and UGF, and UGF's guarantee on EUR0.5 billion of
Unipol Banca's nonperforming assets.  In addition, most Unipol
Banca branches are located inside or adjacent to the branches of
the group's insurance agencies, and insurance clients represent
about 36% of Unipol Banca's funding base.

The negative outlook on Unipol Banca reflects the possibility
that, all else being equal, S&P could lower the ratings if it
anticipated that the economic and operating conditions in which
Italian banks operate would deteriorate further.

S&P might also consider a negative rating action if, contrary to
its current expectations, its assessment of the likelihood of UGF
providing extraordinary support declined or the quality and
timeliness of UGF's ongoing support unexpectedly weakened.  This
could result from Unipol Banca's regulatory core tier 1 ratio
falling sustainably below 8%, or funding support being
insufficient for Unipol Banca to unwind its recourse to long-term
European Central Bank (ECB) funding at a pace in line with the
Italian banking system.

S&P do not currently expect to revise the outlook on Unipol Banca
to stable.  However, S&P could do so if it expected an easing in
the downside risks to the economic and operating environment in
Italy.



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WOOD STREET CLO II: S&P Lowers Rating on Class E Notes to CCC-
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
Wood Street CLO II B.V.'s class A-1, A-2, D, and E notes.  At the
same time, S&P has affirmed its ratings on the class B and C
notes.

The rating actions follow S&P's credit and cash flow analysis of
the transaction using data from the trustee report dated March
19, 2014 and the application of its relevant criteria.

S&P conducted its cash flow analysis to determine the break-even
default rate (BDR) for each rated class of notes at each rating
level.  The BDR represents S&P's estimate of the maximum level of
gross defaults, based on its stress assumptions, that a tranche
can withstand and still fully pay interest and repay principal to
the noteholders.  S&P used the portfolio balance that it
considers to be performing, the reported weighted-average spread,
and the weighted-average recovery rates that S&P considered to be
appropriate.  S&P applied various cash flow stress scenarios
using its standard default patterns and timings for each rating
category assumed for each class of notes, combined with different
interest stress scenarios as outlined in S&P's criteria.

"Our review of the transaction highlights that the class A notes
have amortized by nearly 37% of the outstanding balance since our
previous review.  While this has resulted in more available
credit enhancement for the class A notes, the results of our cash
flow analysis indicate that the notes are not able to sustain
defaults at their current 'AAA' rating level (following the
application of our nonsovereign ratings criteria and the stresses
that we apply to non-euro denominated collateral).  Our cash flow
results show that the available credit enhancement for the class
A notes is commensurate with a 'AA+ (sf)' rating.  We have
therefore lowered to 'AA+ (sf)' from 'AAA (sf)' our ratings on
the class A-1 and A-2 notes," S&P said.

S&P's cash flow results indicate that the available credit
enhancement for the class B and C notes is commensurate with
their currently assigned ratings.  S&P has therefore affirmed its
'A+ (sf)' and 'BBB+ (sf)' ratings on the class B and C notes,
respectively.  The largest obligor test constrains S&P's rating
on the class B notes at the currently assigned rating level.
This test measures the risk of several of the largest obligors
within the portfolio defaulting simultaneously.  S&P introduced
this supplemental stress test in its 2009 criteria update for
corporate collateralized debt obligations (CDOs).

Under S&P's cash flow analysis, the class D and E notes' BDRs
exceed their scenario default rates (SDRs) at their current
rating levels.  The SDR is the minimum level of portfolio
defaults that we expect each CDO tranche to be able to support
the specific rating level using CDO Evaluator.  However, the
application of the largest obligor default test constrains S&P's
ratings on these classes of notes.  S&P has therefore lowered its
ratings on the class D and E notes.

Wood Street CLO II is a cash flow collateralized loan obligation
(CLO) transaction that securitizes loans to primarily
speculative-grade corporate firms.  Alcentra Ltd. manages the
transaction.  It closed in March 2006 and entered its
amortization period in March 2011.

RATINGS LIST

Class                Rating
             To                From

Wood Street CLO II B.V.
EUR400 Million Senior Secured And Deferrable Floating-Rate Notes

Ratings Lowered

A-1          AA+ (sf)          AAA (sf)
A-2          AA+ (sf)          AAA (sf)
D            B- (sf)           B+ (sf)
E            CCC- (sf)         CCC+ (sf)

Ratings Affirmed

B            A+ (sf)
C            BBB+ (sf)



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R O M A N I A
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* ROMANIA: Parliament Approves New Insolvency Code
--------------------------------------------------
Romania Insider reports that Romania's new Insolvency Code, which
was adopted on April 15 in the Parliament, allows for judiciary
re-administration plans to be more easily accepted from now on in
Romania.

It also moves the focus from a company's total debt value and
debt per creditor, to the number of creditors, Romania Insider
notes.  This way, creditors which hold a smaller debt package in
an insolvent company have a bigger say in the re-organization
vote, Romania Insider states.

Under the new law, the individuals who are responsible for the
insolvency can be punished, including with the impossibility to
become company administrators for 10 years, Romania Insider
discloses.

According to Romania Insider, it will also be possible for
creditors to ask for a company's insolvency 60 days after a debt
is due, up from 30 days previously.  The threshold of the debt is
of RON40,000, both in case the debtor wants to declare
insolvency, and for the creditor, Romania Insider says.

For employees who are not paid their salaries, the threshold for
asking insolvency of the first is six unpaid salaries, according
to Romania Insider.



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R U S S I A
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UFA CITY: S&P Affirms 'BB-' LT Issuer Rating; Outlook Stable
------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' long-term
issuer rating and 'ruAA-' Russia national scale rating on the
Russian city of Ufa.  The outlook is stable.

RATIONALE

The ratings on Ufa, the administrative and economic center of the
Republic of Bashkortostan, reflect S&P's view of Russia's
"developing and unbalanced" institutional framework, Ufa's
limited budgetary flexibility and predictability given its
dependence on federal and regional authorities' decisions, and
its lower-than-average wealth, compared globally.  Due to these
system constraints, and to a lack of reliable long-term financial
planning compared with international peers, S&P views Ufa's
financial management as "negative" for its creditworthiness in an
international context (as S&P do for most Russian local and
regional governments [LRGs]).  The ratings are supported by S&P's
view of Ufa's modest debt burden and moderate budgetary
performance.  S&P considers Ufa's liquidity position and moderate
contingent liabilities to be neutral to its creditworthiness.

Ufa has a population of more than one million and its wealth
exceeds the average for neighboring territories.  S&P
nevertheless expects that Ufa's wealth will likely grow in line
with national growth rates as the vast majority of its output is
produced in the city's surrounding areas.  Furthermore, its
economy still depends on the oil-refining and chemical
industries.  Ufa has material infrastructure development needs,
which are likely to pressure its budget over the medium term.

In S&P's view, Ufa's budgetary flexibility is very limited due to
its exposure to federal and regional government decisions
regarding tax shares, allocation of transfers, and redistribution
of spending responsibilities.  S&P estimates that in 2014-2016
transfers from higher tier budgets and personal income tax (PIT),
which are regulated by the federal and the regional government,
will provide almost 70% of the city's revenues.  Ongoing changes
to Ufa's share of PIT will continue to restrict the
predictability of its revenues over the next three years, in our
view.

On the positive side, in recent years the city has benefited from
increasing ongoing and capital support from Bashkortostan, and
S&P expects this trend to continue in the medium term.

"In our base-case scenario for 2014-2016, we expect Ufa's
budgetary performance will be moderate given modest revenue
growth and the city's need to address increasing utility and
maintenance costs.  However, we expect Bashkortostan will
cofinance the increase in public-sector salaries, which is
required by the federal government, and provide additional
operating grants for preschool education expenditure in 2014.  We
therefore forecast the city will maintain operating margins of
about 2.5% of operating revenues on average in 2014-2016, largely
in line with 2011-2013 average results," S&P said.

"Our base-case scenario also assumes that capital grants from
Bashkortostan -- earmarked for investment in Ufa's road,
transport, and utilities infrastructure and housing
construction -- will alleviate pressure on the city's budget over
the medium term.  This cofinancing should allow Ufa to maintain
its capital expenditure program at a high 30% of total
expenditures in 2014-2016, while its deficits after capital
accounts will likely stay at a modest 3% of total revenues on
average, compared to almost 6% of total revenues on average in
2011-2013," S&P added.

Consequently, S&P expects Ufa's debt burden to increase only
gradually and total tax-supported debt to remain modest compared
with that of international peers.  S&P forecasts in its base-case
scenario that Ufa's tax-supported debt won't exceed 60% of
consolidated operating revenues through to the end of 2015.  This
includes the city's direct debt and guarantees that it issues to
support infrastructure investment projects.

S&P considers Ufa's contingent liabilities to be moderate because
the city-owned transport, utility, and housing construction
companies might require the financial support from the city.
This risk may materialize this year: S&P understands that the
municipal company, Ufa Utility Networks, might receive about
Russian rubles (RUB) 1.2 billion from the city and
Bashkortostan's budgets. Moreover, there is an ongoing litigation
case that potentially could cost the city about RUB123 million,
and which would come from the budget.  To reflect this, S&P has
revised its assessment of the contingent liabilities downward.

"We view Ufa's financial management as "negative" for its
creditworthiness in an international context, as we do for most
Russian LRGs, mainly due to the lack of reliable budgeting and
long-term financial planning.  We furthermore consider clarity
regarding the city's policy for its government-related entities
(GREs) to be limited," S&P said.

Liquidity

S&P views Ufa's liquidity position as "neutral," as its criteria
define the term.  The city keeps low cash reserves (not taking
into account a one-off hike in December 2013), but maintains
committed credit lines sufficient to cover more than 120% of its
debt service falling due in the next 12 months.  S&P also views
Ufa's access to external liquidity as "limited," as it do for all
Russian LRGs given the weaknesses of the domestic capital market
and the banking sector.

In S&P's base-case scenario, it forecasts that over the next 12
months Ufa's cash reserves net of deficit after capital accounts
will remain relatively low at about RUB300 million (about US$9
million) on average.  S&P expects that in 2014-2015 the city will
continue to rely on medium-term bank lines for refinancing and
liquidity purposes, which it usually organizes throughout the
budget year ahead of debt maturity dates.  In S&P's view, Ufa has
good access to low-interest-rate budget loans from Bashkortostan
and might receive about RUB500 million this year.

The city has been gradually extending its debt maturity profile
in 2012-2013.  In 2013, Ufa secured RUB1.8 million in credit
lines, 70% of which mature in five-to-10 years.  Moreover, in May
this year we expect the city to organize another RUB2.2 billion
in new bank lines with six-to-10-year maturities.  S&P estimates
that, including these new bank loans, the average maturity of the
city's credit portfolio will be about seven years.

OUTLOOK

The stable outlook reflects S&P's view that Ufa's budgetary
performance and borrowing needs will remain moderate in
2014-2016. S&P expects that transfers from higher tier budgets
will help the city absorb operating expenditure pressure and
finance its infrastructure development needs.  The outlook also
assumes that the city will maintain its "neutral" liquidity
position by organizing sufficient amounts in committed credit
lines and relying on medium- to long-term borrowing.

"We could lower the ratings within the next 12 months if, in line
with our downside scenario, the operating balance fell below zero
in 2014 and deficits after capital accounts widened to more than
5% of total revenues.  Coupled with short-term debt accumulation,
this could lead to a weakening liquidity position, with the debt-
service coverage ratio falling below 120% and tax-supported debt
exceeding 60% of consolidated operating revenues.  In such a
case, we would revise our assessment of liquidity to "negative"
and our debt burden assessment downward," S&P said.

"We could raise the ratings within the next 12 months if, in line
with our upside scenario, additional budget revenues and a
cautious approach to expenditure resulted in a breakeven balance
after capital accounts and cash accumulation, and led to a
structural improvement in Ufa's liquidity position that we would
classify as "positive."  In our upside case, we also assume that
the current litigation risk is resolved with minimum losses for
the city's budget, leading us to revise our assessment of
contingent liabilities upward," S&P noted.

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

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

RATINGS LIST

Ratings Affirmed

Ufa (City of)
Issuer Credit Rating                   BB-/Stable/--
Russia National Scale                  ruAA-/--/--



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


GREEN HILL: On Verge of Administration; Around 15 Jobs at Risk
--------------------------------------------------------------
Grant Prior at Construction Enquirer reports that Green Hill
Construction is set to appoint an administrator this week.

According to Construction Enquirer, around 150 staff are facing
redundancy at the company.

Construction Enquirer relates that Darran Watts, director of
Green Hill Construction, told the South Wales Argus: "Green Hill
Construction Ltd. have filed a notice of intention to appoint an
administrator -- however the appointment has not yet been made."

Newport-based Green Hill Construction was established in 2006
with a focus on building homes for registered social landlords
across south Wales and the South West.


SIT-UP: In Administration; 229 Jobs Affected
--------------------------------------------
Tiffany Holland at Retail Week reports that Sit-Up, which
operates Price Drop and Bid TV, has collapsed into administration
just a month after it secured a CVA.

KPMG has been appointed administrator to the company on Thursday,
Retail Week relates.  It will cease to trade with immediate
effect, making 229 redundancies, Retail Week discloses.

KPMG, as cited by Retail Week, said it collapsed after "a
significant and unexpected" fall in sales over the last month.

Entrepreneurs Paul and Val Wright, the couple who launched Ideal
Shopping, had hoped to rescue Sit-up by investing GBP6 million
when the CVA was passed on March 18, Retail Week discloses.

KPMG was originally called in to run the CVA and had asked
creditors that were owed money to accept 9p to 30p in the pound,
Retail Week relays.

Sit-Up is a TV shopping channel.


* UK: Number of SMEs in Financial Distress Up 22% in 1st Quarter
----------------------------------------------------------------
Rebecca Burn-Callander at The Telegraph reports that Begbies
Traynor's new Red Flag Alert, which monitors the financial health
of small-to-medium-sized enterprises (SMEs), revealed a 22%
increase in the number of companies in "significant" financial
distress in the first three months of this year.

"Significant" distress refers to firms that have county court
judgments against them for less than GBP5,000, or have
experienced a marked deterioration in working capital, contingent
liabilities, profits or net worth, at The Telegraph notes.

Small businesses in consumer-facing sectors have experienced the
most dramatic downturn in their fortunes over the last 12 months,
at The Telegraph says, citing the Red Flag Alert.  Smaller bars
and restaurants make up 98% of the hospitality industry's
struggling businesses, The Telegraph discloses.  This is
significantly higher than the UK average of 92%, as seen across
the entire economy, The Telegraph states.

According to The Telegraph, the number of general retailers in
"significant" financial difficulty is also on the rise, up 16%
year-on-year to 13,130, of which 97% are classified as SMEs.

The research found that larger companies have enjoyed a 14%
decline in distress levels over the same period, The Telegraph
notes.  SMEs now account for 92%, or 207,505, of the 225,549 UK
businesses facing "significant" financial distress compared to
169,800 at the end of the first quarter of 2013, when SMEs
represented 89% of all businesses at 'significant' risk, The
Telegraph relays.


                            *********

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

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

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


                            *********


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

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

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

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

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

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


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