TCREUR_Public/140424.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Thursday, April 24, 2014, Vol. 15, No. 80

                            Headlines

F I N L A N D

L&T RECOIL: Files for Bankruptcy; Seeks Buyers for Assets


G E R M A N Y

NUERBURGRING: NeXovation Files Complaint Over Race Track Sale


I R E L A N D

BUY AND SELL: Provisional Liquidator Seeks Demirca Sale Approval
* IRELAND: Corporate Insolvencies Down 13% in Q1 of 2014


I T A L Y

ALITALIA SPA: Business Improves; Etihad Talks Continue


K A Z A K H S T A N

HOME CREDIT: Fitch Affirms 'BB' Long-Term IDR; Outlook Negative


N E T H E R L A N D S

JUBILEE CLO 2014- XII: Moody's Rates EUR19MM Class F Notes (P)B2
STICHTING HOLLAND: Moody's Affirms Ba2 Rating on EUR6.8MM Notes


R O M A N I A

* ROMANIA: Ranks 2nd in Central & Eastern EU by Insolvency Rate
* ROMANIA: Number of Insolvent Companies Down 10%


R U S S I A

BRUNSWICK RAIL: Moody's Lowers CFR to 'B1'; Outlook Negative
KIT FINANCE: Fitch Withdraws 'B' Long-Term IDR; Outlook Stable


S P A I N

FTPYME TDA 6: Fitch Affirms 'CCC' Rating on Class 3SA Notes


U N I T E D   K I N G D O M

ASTEC PROJECTS: In Administration, Cuts 65 Jobs
EXOVA GROUP: S&P Raises CCR to 'BB'; Outlook Stable
* UK: Late Payment Causes 20% of Insolvencies, Says R3
* UK: Number of Business Failures Up More Than 70%


                            *********


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F I N L A N D
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L&T RECOIL: Files for Bankruptcy; Seeks Buyers for Assets
---------------------------------------------------------
George Gill at Lube Report reports that Finnish rerefiner L&T
Recoil Oy and parent company EcoStream Ltd. filed for bankruptcy
at the end of March.

According to Lube Report, Petri Rautanen, formerly managing
director for L&T Recoil Oy, said an estate administrator is
seeking buyers for assets that include a rerefinery in Hamina,
Finland.

Pauliina Tenhunen, managing partner for Helsinki-based law firm
Castren & Snellman Attorneys Ltd., is serving as estate
administrator for the bankruptcy case, Lube Report discloses.

Mr. Tenhunen, as cited by Lube Report, said the goal is to find
buyers for the EcoStream and L&T Recoil Oy assets soon because it
costs money to keep the assets secure in the meantime.

Marc Verfuerth, CEO of German rerefiner Avista Oil AG, said his
company is among those in communications with the estate
administrator about the assets in Finland, Lube Report relates.

The estate administrator has said they are more interested in
finding somebody that will continue the operations at Hamina,
Lube Report relays.

According to Lube Report, he noted that while Avista is one of
the parties looking deeply into EcoStream's assets, it is also
looking into the new market opportunities in the northern part of
Europe.

L&T Recoil Oy and its then joint venture partner EcoStream opened
a EUR45 million (now U.S. US$62.2 million) rerefinery in 2009.
With 1,200 b/d of API Group II capacity, the plant was fed by
used lubricants collected within the Nordic and Baltic countries
and Finland.



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G E R M A N Y
=============


NUERBURGRING: NeXovation Files Complaint Over Race Track Sale
-------------------------------------------------------------
Reuters reports that U.S.-based investment company NeXovation
said it had filed a complaint with European Union antitrust
authorities contesting the outcome of an auction of Germany's
historic Nuerburgring race track.

The news agency says NeXovation told authorities that its
EUR150 million ($208.21 million) cash offer for the racetrack had
not been given proper consideration.

Nuerburgring, which became insolvent in 2012, was sold last month
by its court-appointed administrator to Capricorn Group, a motor-
sport industry supplier, for more than EUR100 million, according
to Reuters.

Reuters relates that NeXovation CEO Robert Sexton said in a
statement released in Germany that its complaint centered on the
sellers' indication to NeXovation that the winning bid would not
be decided until due diligence was complete on March 31, 2014,
and the bidders had time to finish their financing commitments.
However, the sale was awarded on March 11.

"One of our concerns is that the representatives of some of these
stakeholders on the creditors' committee may have pushed ahead
with their decision based on incorrect or incomplete information
or assertions," the report quotes Mr. Sexton as saying.

Reuters adds that a spokeswoman for Thomas Schmidt, the
administrator tasked with overseeing the auction process, said:
"We take note of NeXovation's press release. We have not received
a complaint. For reasons of confidentiality we cannot comment in
detail on the auction process. The comments made in the press
statement are not valid. The investor process was conducted in an
orderly fashion. NeXovation was not selected as a bidder."



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I R E L A N D
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BUY AND SELL: Provisional Liquidator Seeks Demirca Sale Approval
----------------------------------------------------------------
Aodhan O'Faolain and Ray Managh at Independent.ie report that the
provisional liquidator appointed to the company that publishes
the troubled 'Buy and Sell' magazine has asked the High Court for
permission to sell it to Demirca Ltd., a subsidiary of media
group Communicorp.

Lawyers for Neil Hughes, who was appointed provisional liquidator
earlier this month, asked the court to approve the sale for
EUR311,000 to Denis O'Brien-owned Communicorp, Independent.ie
relates.

According to Independent.ie, Mr. Justice Anthony Barr adjourned
the application until today, April 24, to allow a rival bidder,
Midland Web Printing Ltd., which prints the magazine, to consider
more fully its opposition to the court approving the sale to
Demirca.

Mr. Hughes was appointed provisional liquidator of 'Buy and Sell'
owners Buzreel Limited, Independent.ie relays.

Midland Web is owed more than EUR90,000 by Buzreel, making it one
of the firm's largest creditors, and had earlier applied to the
court to have the company wound up, Independent.ie discloses.

Mr. Hughes has been trying to sell the magazine and received
several bids by interested parties, Independent.ie notes.

Following that tendering process, he asked the court on April 22
to approve a sale to Demirca, Independent.ie recounts.

Barrister Andrew Whelan, counsel for Midland, opposed the
application, Independent.ie says.  According to Independent.ie,
he told the judge that the provisional liquidator was attempting
"to steamroll" the court into approving the sale to Demirca.


* IRELAND: Corporate Insolvencies Down 13% in Q1 of 2014
--------------------------------------------------------
Karina Corbett at Business and Leadership reports that there was
a decline of 13pc year-on-year for the first quarter of 2014 in
the number of corporate insolvencies recorded in Ireland,
according to figures released by Kavanaghfennell and published by
InsolvencyJournal.ie.

While the figures paint a positive picture, Kavanaghfennell still
expects to see a significant number of insolvency actions
occurring in 2014, particularly across the property area and in
examinership applications, the report relates.

With regard to corporate insolvency types, liquidations,
including both court and creditors voluntary liquidations (CVL),
continued to dominate, accounting for 69% of total insolvencies
in Q1 2014. Receiverships accounted for 29%, while examinerships
accounted for 2%, Business and Leadership relays.

"Although the incidence of corporate insolvencies could fall
further during 2014, we do not anticipate the drop will be
significant, as we expect an increase in examinership
applications, particularly under the new legislation where SME
directors can utilise the process to restructure SME corporate
debt, while continuing to trade under the protection of the
court," the report quotes David Van Dessell, partner with
Kavanaghfennell, as saying.

"We also anticipate sustained activity in the property
receivership arena as the property market strengthens in urban
areas, leading to better returns for secured creditors.  We also
envisage increased personal insolvency activity that should be
borne out by the second quarter figures to be issued by the
Insolvency Service of Ireland."



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I T A L Y
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ALITALIA SPA: Business Improves; Etihad Talks Continue
------------------------------------------------------
Chiara Vasarri and Andrea Rothman at Bloomberg News report that
Alitalia SpA, the unprofitable Italian carrier in talks with
Etihad Airways PJSC, said business improved at the start of the
year as negotiations continue with the United Arab Emirates
airline for an alliance.

According to Bloomberg, an Alitalia statement said the Rome-based
company said executives briefed the carrier's board on April 23
on the status of discussions.

Alitalia, as cited by Bloomberg, said without providing figures
that the Italian airline's financial situation at the start of
2014 improved from a year ago.

Alitalia, Bloomberg says, is seeking fresh capital from Etihad
after failing to persuade Air France (AF) KLM Group to
participate in a capital increase last year.  Italian daily Il
Messaggero reported April 20 that Alitalia's debt remains the
"main knot to untie" before an agreement can be reached,
Bloomberg notes.

For Etihad, a stake in Alitalia would give it one more base from
which to funnel traffic through Abu Dhabi, Bloomberg states.

                          About Alitalia

Alitalia-Compagnia Aerea Italiana has navigated its way through
a successful restructuring.  After filing for bankruptcy
protection in 2008, Alitalia found additional investors, acquired
rival airline Air One, and re-emerged as Italy's leading airline
in early 2009.  Operating a fleet of about 150 aircraft, the
airline now serves more than 75 national and international
destinations from hubs in Fiumicino (Rome), Milan, Turin, Venice,
Naples, and Catania.  Alitalia extends its network as a member of
the SkyTeam code-sharing and marketing alliance, which also
includes Air France, Delta Air Lines, and KLM.  An Italian
investor group owns a majority of the company, while Air France-
KLM owns 25%.



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K A Z A K H S T A N
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HOME CREDIT: Fitch Affirms 'BB' Long-Term IDR; Outlook Negative
--------------------------------------------------------------
Fitch Ratings has revised the Outlook of Russia-based Home Credit
and Finance Bank (HCR) and its Kazakh subsidiary, SB JSC Home
Credit and Finance Bank (HCK), to Negative from Stable.  Their
Long-term Issuer Default Ratings (IDRs) have been affirmed at
'BB' and 'BB-', respectively.

KEY RATING DRIVERS - HCR's IDRS, VIABILITY RATING (VR)

The revision of the Outlook on HCR's Long-term IDRs reflects the
weakening operating environment in Russia and its potential
further negative impact on the bank's performance.  The Outlook
also considers the already challenging operating conditions for
the Russian consumer finance sector in general and HCR in
particular, as portfolio seasoning and higher household leverage
have caused credit losses to widen significantly.  At the same
time, the ratings remain supported by HCR's considerable
resilience against potential shocks, given its high margins,
solid capital buffer and strong liquidity.

HCR's credit losses -- defined as non-performing loans (NPLs, 90
days overdue) originated in the period divided by average
performing loans -- increased to 17% in 2013 from 14% in 1H13 and
10% in 2012.  Positively, vintage analysis suggests the quality
of 2H13 loan generations improved moderately, as HCR tightened
its underwriting standards and focused on lower-risk clients.
However, the sustainability of this trend is yet to be tested,
and risks remain on the downside given expected sluggish
performance of the Russian economy this year.  HCR may also find
it challenging to compete for better-quality borrowers with
larger corporate banks which target the same clientele, but may
offer lower rates and larger loan tickets.

Profitability remained sound in 2013 (return on average equity
(ROAE) of 21%, down from 51% in 2012), but in Fitch's view is
likely to come under greater pressure in 2014, and may be close
to breakeven.  This is due to (i) a reduction in insurance-
related fees, which are booked upfront at loan origination and
comprised 33% of pre-impairment profit in 2013, but are likely to
decrease significantly in 2014 as Fitch expects close to zero
loan growth judging by 1Q14 loan growth in statutory accounts;
(ii) a moderate contraction of margins due to the growing share
of lower-risk, lower-yield lending in HCR's portfolio and a
gradual increase in funding costs in line with recent market
trends; and (iii) a likely further increase in loan impairment
charges, at least in 1H14, as weaker vintages issued in 2H12-1H13
continue to season.

Management expects performance to improve by end-2014 after a
weaker 1H14, although in Fitch's view that could be challenging
given the tougher environment and the ongoing rebalancing of the
business model.

HCR's capitalization is solid with a Fitch Core Capital (FCC) of
15.5% at end-2013 and on-balance sheet NPLs (12% of gross loans
at end-2013) fully reserved.  Regulatory capital is tighter
(total capital ratio of 14.8% at end-1Q14) because of increased
risk-weightings on higher-yielding loans issued after July 2013.

However, the bank has some flexibility to manage this by altering
product structures and possibly also selling or originating on to
the balance sheets of related entities higher-margin businesses.
Funding and liquidity remain a rating strength for HCR.  Despite
the moderate 12% outflow of customer funding in 1Q14, Fitch views
HCR's deposit collection capacity as strong due to competitive
rates and a wide branch network.  HCR's deposit base (74% of end-
2013 liabilities) is granular and is adequately covered by liquid
assets (16% at end-1Q14).  Liquidity risk is further mitigated by
quick turnover of loans, with monthly proceeds from loan
repayments of about RB25 billion, equal to 8% of liabilities.
Following the repayment of a USD500 million eurobond in March
2014, HCR's remaining refinancing needs for 2014 are a low
RUB8 billion (3% of total liabilities).

KEY RATING SENSITIVITIES - HCR's IDRS AND VR

Further significant deterioration of HCR's asset quality and/or
profitability amid a more challenging operating environment could
lead to a downgrade.  Conversely, the stabilization of
performance and gradual recovery of asset quality metrics could
lead to the Outlook being revised to Stable.

KEY RATING DRIVERS AND SENSITIVITES - HCR'S SUPPORT RATINGS AND
SUPPORT RATING FLOOR (SRF)

The SRF of 'No Floor' reflects that support from the Russian
authorities, although possible given HCR's significant RUB212bn
deposit base, is not factored into the ratings due to the bank's
still small size and lack of overall systemic importance.
Although there is some track record of support from HCR's private
shareholders future support cannot be relied upon.

KEY RATING DRIVERS - HCK'S IDRS, NATIONAL RATING AND SUPPORT
RATING

HCK's Long-term IDRs are driven by support the bank could receive
from its parent, HCR.  The revision of the Outlook on HCK's
ratings reflects the revision of the Outlook on HCR.  Fitch's
view of the probability of support is based on HCK's increasing
importance for the parent (it accounted for 24% of HCR's
consolidated earnings in 2013) and still small size (less than 7%
of HCR's assets at end-2013), making it fairly easy to support.
Fitch's view also takes into account HCR's full ownership, common
branding and reputational risk for HCR in case of HCK's default.

The one-notch difference between HCR's and HCK's ratings reflects
the cross-border nature of the parent-subsidiary relationship,
HCK's so far limited track record of operations, and some
uncertainty about the long-term commitment of HCR and the broader
Home Credit group to support HCK in case of a prolonged
deterioration of the operating environment in Kazakhstan.

RATING SENSITIVITIES - HCK'S IDRS, NATIONAL RATING AND SUPPORT
RATING

Any negative action on the parent's Long-term IDRs would likely
be matched by a similar action on HCK's Long-term IDRs.  This
would also impact the National Rating and could result in a
change in the Support Rating.

KEY RATING DRIVERS - HCK'S VR

HCK's VR of 'b' is constrained by the bank's higher-than-average
sensitivity to economic shocks resulting in potentially more
volatile asset quality metrics and earnings through the cycle,
its limited franchise, and a weak funding profile reflected in
high single-name concentrations and dependence on parent
facilities.

The rating also reflects the bank's currently strong
profitability, still adequate, although deteriorating, asset
quality and solid capitalization.

HCK's profitability remained strong in 2013 with a high 12.8%
return on average assets (but down from 16.3% in 2012).  However,
HCK derives a large portion of its revenues from fees for selling
insurance products to borrowers, which were equal to a high 52%
of 2013 pre-impairment profit.  Such fees are recognized upfront
at loan origination and are likely to materially reduce as a
result of borrowers switching to longer-term cash-loans, loan
growth slowdown and reduction of the share of loans issued with
attached insurance from the currently unsustainable close to 100%
level.

HCK's credit losses picked up to 13% of average performing loans
in 2013 from 8% in 2012 despite a benign operating environment
and fast loan book growth, and the trend is likely to persist as
borrower indebtedness grows and competition for quality customers
intensifies.  At the same time, the bank has significant capacity
to absorb losses, underpinned by its wide net interest margin and
currently strong fee income.  Fitch estimates that HCK's
breakeven loss-rate was a high 30% in 2013, although it would be
around two times lower net of insurance commissions.  HCK's
strong 28% FCC ratio at end-2013 provides a further significant
cushion to absorb losses.

HCK is reliant on funding provided by the group (35% of
liabilities at end-2013) and corporate deposits (another 34%).
The latter are highly concentrated with the largest two
accounting for 19% of end-2013 liabilities.  Positively, HCK is
gradually diversifying its funding structure by increasing the
share of retail deposits and tapping the local wholesale market
with bond issuance.  The bank's liquidity is supported by a
rapidly amortizing loan book, which generates around KZT10
billion (20% of customer accounts) of cash per month.

RATING SENSITIVITIES - HCK'S VR

An extended track record of sound performance and growth
supported by a more diversified funding base would be positive
for the standalone profile. A significant deterioration of the
operating environment in Kazakhstan, or weaker performance of the
loan book diminishing HCK's ability to absorb further losses
would be negative and could lead to downward pressure on the VR.

KEY RATING DRIVERS AND SENSITIVITIES - HCR'S AND HCK'S SENIOR AND
SUBORDINATED DEBT RATINGS

The banks' senior unsecured debt is rated in line with their
Long-term IDRs, reflecting Fitch's view of average recovery
prospects, in case of default.  The (new style) subordinated debt
rating of HCR is notched once off its VR (which is in line with
its Long-term IDRs) in accordance with Fitch's criteria for
rating these instruments.  Any changes to the banks' Long-term
IDRs would likely impact the ratings of both senior unsecured and
subordinated debt

The rating actions are as follows:

HCR

Long-term foreign and local currency IDRs: affirmed at 'BB';
  Outlooks revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'bb'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
Senior unsecured debt: affirmed at 'BB'
Subordinated debt (issued by Eurasia Capital SA): affirmed at
  'BB-'

HCK

Long-term foreign and local currency IDRs: affirmed at 'BB-';
  Outlooks revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'B'
National Long-Term Rating: affirmed at 'BBB+(kaz)'; Outlook
  revised to Negative from Stable
Viability Rating: affirmed at 'b'
Support Rating: affirmed at '3'
Senior unsecured debt: affirmed at 'BB-'/'BBB+(kaz)'



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


JUBILEE CLO 2014- XII: Moody's Rates EUR19MM Class F Notes (P)B2
----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by Jubilee
CLO 2014- XII B.V.:

  EUR302,000,000 Class A Senior Secured Floating Rate Notes due
  2027, Assigned (P)Aaa (sf)

  EUR51,000,000 Class B1 Senior Secured Floating Rate Notes due
  2027, Assigned (P)Aa2 (sf)

  EUR5,000,000 Class B2 Senior Secured Fixed Rate Notes due 2027,
  Assigned (P)Aa2 (sf)

  EUR26,500,000 Class C Senior Secured Deferrable Floating Rate
  Notes due 2027, Assigned (P)A2 (sf)

  EUR24,900,000 Class D Senior Secured Deferrable Floating Rate
  Notes due 2027, Assigned (P)Baa2 (sf)

  EUR36,900,000 Class E Senior Secured Deferrable Floating Rate
  Notes due 2027, Assigned (P)Ba2 (sf)

  EUR19,000,000 Class F Senior Secured Deferrable Floating Rate
  Notes due 2027, Assigned (P)B2 (sf)

Moody's issues provisional ratings in advance of the final sale
of financial instruments, but these ratings only represent
Moody's preliminary credit opinions. Upon a conclusive review of
a transaction and associated documentation, Moody's will endeavor
to assign definitive ratings. A definitive rating (if any) may
differ from a provisional rating.

Ratings Rationale

Moody's provisional rating of the rated notes addresses the
expected loss posed to noteholders by the legal final maturity of
the notes in 2027. The provisional ratings reflect the risks due
to defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure. Furthermore, Moody's
is of the opinion that the collateral manager, Alcentra Limited,
has sufficient experience and operational capacity and is capable
of managing this CLO.

Jubilee 2014- XII is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured loans or senior secured
bonds and up to 10% of the portfolio may consist of senior
secured loans or senior unsecured bonds, second-lien loans,
mezzanine obligations, high yield bonds and senior unsecured
bonds. The portfolio is expected to be 60% ramped up as of the
closing date and to be comprised predominantly of corporate loans
to obligors domiciled in Western Europe. The remainder of the
portfolio will be acquired during the 6 month ramp-up period in
compliance with the portfolio guidelines.

Alcentra will manage the CLO. It will direct the selection,
acquisition and disposition of collateral on behalf of the Issuer
and may engage in trading activity, including discretionary
trading, during the transaction's four-year reinvestment period.
Thereafter, purchases are permitted using principal proceeds from
unscheduled principal payments and proceeds from sales of credit
risk obligations, and are subject to certain restrictions.

In addition to the seven classes of notes rated by Moody's, the
Issuer will issue one class of subordinated notes.

The transaction incorporates interest and par coverage tests
which, if triggered, divert interest and principal proceeds to
pay down the notes in order of seniority.

Loss and Cash Flow Analysis:

Moody's modelled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published in
February 2014. The cash flow model evaluates all default
scenarios that are then weighted considering the probabilities of
the binomial distribution assumed for the portfolio default rate.
In each default scenario, the corresponding loss for each class
of notes is calculated given the incoming cash flows from the
assets and the outgoing payments to third parties and
noteholders. Therefore, the expected loss or EL for each tranche
is the sum product of (i) the probability of occurrence of each
default scenario and (ii) the loss derived from the cash flow
model in each default scenario for each tranche. As such, Moody's
encompasses the assessment of stressed scenarios.

Moody's used the following base-case modeling assumptions:

Par amount: EUR498,750,000

Diversity Score: 33

Weighted Average Rating Factor (WARF): 2780

Weighted Average Spread (WAS): 4.20%

Weighted Average Recovery Rate (WARR): 42.0%

Weighted Average Life (WAL): 8 years.

Moody's has analyzed the potential impact associated with
sovereign related risk of peripheral European countries. As part
of the base case, Moody's has addressed the potential exposure to
obligors domiciled in countries with local currency country risk
ceiling of A1 or below. Following the effective date, and given
the portfolio constraints and the current sovereign ratings in
Europe, such exposure may not exceed 10% of the total portfolio,
where exposures to countries local currency country risk ceiling
of Baa1 or below cannot exceed 5% (with none allowed below Baa3).
As a result and in conjunction with the current foreign
government bond ratings of the eligible countries, as a worst
case scenario, a maximum 5% of the pool would be domiciled in
countries with single A local currency country ceiling and 5% in
Baa2 local currency country ceiling. The remainder of the pool
will be domiciled in countries which currently have a local
currency country ceiling of Aaa. Given this portfolio
composition, the model was run with different target par amounts
depending on the target rating of each class of notes as further
described in the methodology. The portfolio haircuts are a
function of the exposure size to peripheral countries and the
target ratings of the rated notes and amount to 0.75% for the
class A notes, 0.50% for the Class B notes, 0.375% for the Class
C notes and 0% for Classes D, E and F.

Stress Scenarios:

Together with the set of modelling assumptions above, Moody's
conducted additional sensitivity analysis, which was an important
component in determining the provisional rating assigned to the
rated notes. This sensitivity analysis includes increased default
probability relative to the base case. Below is a summary of the
impact of an increase in default probability (expressed in terms
of WARF level) on each of the rated notes (shown in terms of the
number of notch difference versus the current model output,
whereby a negative difference corresponds to higher expected
losses), holding all other factors equal:

Percentage Change in WARF: WARF + 15% (to 3197 from 2780)

Ratings Impact in Rating Notches:

Class A Senior Secured Floating Rate Notes: -1

Class B Senior Secured Floating Rate Notes: -2

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -1

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: -0

Percentage Change in WARF: WARF +30% (to 3614 from 2780)

Class A Senior Secured Floating Rate Notes: -1

Class B Senior Secured Floating Rate Notes: -3

Class C Senior Secured Deferrable Floating Rate Notes: -3

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -2

Class F Senior Secured Deferrable Floating Rate Notes: -2

Methodology Underlying the Rating Action:

The principal methodology used in this rating was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
February 2014.

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

The rated notes' performance is subject to uncertainty. The
notes' performance is sensitive to the performance of the
underlying portfolio, which in turn depends on economic and
credit conditions that may change. Alcentra's investment
decisions and management of the transaction will also affect the
notes' performance.


STICHTING HOLLAND: Moody's Affirms Ba2 Rating on EUR6.8MM Notes
---------------------------------------------------------------
Moody's Investors Service has downgraded the rating of one
mezzanine note in the residential mortgage-backed securities
(RMBS) transaction Sound II B.V. and confirmed the rating of
three notes in Stichting Holland Homes III. Swap counterparty
exposure has prompted the action. At the same time, Moody's
affirmed the ratings of all tranches from these two transactions
which were not on review for possible downgrade.

The rating action concludes the review of the ratings in these
two Dutch RMBS transactions, which Moody's placed on review on 14
November 2013, in relation to swap counterparty exposure
following the introduction of the rating agency's updated
approach to assessing swap counterparty linkage in structured
finance transactions.

Ratings Rationale

The rating action reflects the impact on the two transactions of
their exposure to the Royal Bank of Scotland N.V. ("RBS" rated
Baa1/P-2) in the case of Sound II B.V. and the Royal Bank of
Scotland plc ("RBS" rated Baa1/P-2) in the case of Stichting
Holland Homes III as their respective swap counterparties. The
long-term rating of RBS was downgraded to Baa1 from A3 on 13
March 2014. The rating action follows the introduction of the
rating agency's updated approach to assessing swap counterparty
linkage in structured finance cash flow transactions ("Approach
to Assessing Swap Counterparties in Structured Finance Cash Flow
Transactions" published on the 12th November 2013").

As part of its review, Moody's has incorporated the risk of
additional losses on the notes in the event of them becoming
unhedged following a swap counterparty default.

Stichting Holland Homes III has a fixed to floating interest rate
swap agreement in place with RBS according to which the issuer
pays a fixed rate of interest on a scheduled notional and
receives 3month EURIBOR (Euro Interbank Offered Rate) in return.
This swap matures at the Put Date in March 2015. Given the short
maturity of the swap the risk of additional losses on the notes
in the event of them becoming unhedged following a swap
counterparty default is limited.

The ratings of the three notes on review for possible downgrade
have therefore been confirmed. The transaction also has another
swap with Credit Suisse International (A1/P-1) which will remain
in place following the put date in March 2015.

Sound II B.V. has an interest rate swap agreement in place with
RBS to hedge the risk arising from the mismatch of the interest
received on the underlying assets, which carry periodically
resetting fixed rates, and the interest due on the outstanding
notes which is based on 3month EURIBOR (Euro Interbank Offered
Rate). The swap analysis, which incorporates the risk of
additional losses on the notes in the event of them becoming
unhedged following a swap counterparty default, has resulted in a
downgrade for class B while the ratings of class A have been
affirmed.

Net swap payments in recent periods were in favor of the swap
counterparty in the two transactions, given the current interest
rate environment. However, net swap payments could be in favor of
the issuer in future.

Moody's has reassessed the collateral performance and portfolio
characteristics based on available information of the
transactions. As a result, Moody's has increased its current
lifetime expected loss (EL) and MILAN CE assumption for Sound II
B.V. and increased its MILAN CE assumption for Stichting Holland
Homes III. The EL assumption for Sound II B.V. has increased from
0.13% to 0.20% in terms of lifetime cumulative loss as per the
original balance. The MILAN CE assumption for Sound II B.V. has
increased from 2.60% to 4.40% and the MILAN CE assumption for
Stichting Holland Homes III has increased from 4.21% to 5%.
However these assumption changes have not resulted in any rating
impact.

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

Factors or circumstances that could lead to a downgrade of the
ratings affected by the action would be the worse-than-expected
performance of the underlying collateral, deterioration in the
credit quality of the counterparties and an increase in sovereign
risk.

Factors or circumstances that could lead to an upgrade of the
ratings affected by the action would be the better-than-expected
performance of the underlying assets, and a decline in both
counterparty and sovereign risk. In particular for Sound II B.V.,
the downgrade of RBS resulted in a "ratings event" under the swap
agreement, which will give rise to an additional termination
event unless RBS takes suitable remedial action. Remedial action
resulting in a significant reduction in swap counterparty risk,
such as transfer to or guarantee from a highly rated entity,
could result in an upgrade to the Class B note.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
March 2014.

List of Affected Ratings

Issuer: Sound II B.V.

  EUR732.8M Class A Notes, Affirmed Aa1 (sf); previously on
  Jul 6, 2009 Downgraded to Aa1 (sf)

  EUR11.6M Class B Notes, Downgraded to Baa2 (sf); previously on
  Nov 14, 2013 A3 (sf) Placed Under Review for Possible Downgrade

Stichting Holland Homes Iii

  EUR722.2M Class A Notes, Confirmed at Aaa (sf); previously on
  Nov 14, 2013 Aaa (sf) Placed Under Review for Possible
  Downgrade

  EUR18.8M Class B Notes, Confirmed at Aa2 (sf); previously on
  Nov 14, 2013 Aa2 (sf) Placed Under Review for Possible
  Downgrade

  EUR9M Class C Notes, Confirmed at A3 (sf); previously on Nov
  14, 2013 A3 (sf) Placed Under Review for Possible Downgrade

  EUR6.8M Class D Notes, Affirmed Ba2 (sf); previously on Nov 9,
  2005 Definitive Rating Assigned Ba2 (sf)

Regulatory Disclosures

For further specification of Moody's key rating assumptions and
sensitivity analysis, see the sections Methodology Assumptions
and Sensitivity to Assumptions of the disclosure form.

Moody's did not receive or take into account a third-party
assessment on the due diligence performed regarding the
underlying assets or financial instruments related to the
monitoring of these transactions in the past six months.

The analysis relies on an assessment of collateral
characteristics to determine the collateral loss distribution,
that is, the function that correlates to an assumption about the
likelihood of occurrence to each level of possible losses in the
collateral. As a second step, Moody's evaluates each possible
collateral loss scenario using a model that replicates the
relevant structural features to derive payments and therefore the
ultimate potential losses for each rated instrument. The loss a
rated instrument incurs in each collateral loss scenario,
weighted by assumptions about the likelihood of events in that
scenario occurring, results in the expected loss of the rated
instrument.

As the section on loss and cash flow analysis describes, Moody's
quantitative analysis entails an evaluation of scenarios that
stress factors contributing to sensitivity of ratings and take
into account the likelihood of severe collateral losses or
impaired cash flows. Moody's weights the impact on the rated
instruments based on its assumptions of the likelihood of the
events in such scenarios occurring.

For ratings issued on a program, series or category/class of
debt, this announcement provides certain regulatory disclosures
in relation to each rating of a subsequently issued bond or note
of the same series or category/class of debt or pursuant to a
program for which the ratings are derived exclusively from
existing ratings in accordance with Moody's rating practices. For
ratings issued on a support provider, this announcement provides
certain regulatory disclosures in relation to the rating action
on the support provider and in relation to each particular rating
action for securities that derive their credit ratings from the
support provider's credit rating. For provisional ratings, this
announcement provides certain regulatory disclosures in relation
to the provisional rating assigned, and in relation to a
definitive rating that may be assigned subsequent to the final
issuance of the debt, in each case where the transaction
structure and terms have not changed prior to the assignment of
the definitive rating in a manner that would have affected the
rating.

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



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


* ROMANIA: Ranks 2nd in Central & Eastern EU by Insolvency Rate
---------------------------------------------------------------
Romania Insider reports that Romania had last year the second
highest insolvency rate among active companies in Central and
Eastern Europe, of 6.44 percent, according to Coface, quoted by
Mediafax newswire.

The highest insolvency rate in the region was recorded by Serbia,
with 7.61 percent, Romania Insider relays.

Over 27,000 insolvencies were opened in Romania last year, double
compared to the level in Hungary and 300 times higher than in
Poland, given that the number of active firms is four times
higher, Romania Insider discloses.

Over a third of the newly insolvent firms in Romania were retail
companies, Romania Insider reports citing Trade Registry data.

December saw the start of insolvency procedures for 2,400
companies, down on 3,500 in November and 3,300 in October, the
report adds.

Most insolvencies were recorded in Bucharest -- 3,700, up 5.4
percent on 2012 -- and Bihor, with 1,800 insolvencies, a 40
percent growth on 2012.  The smallest number of insolvencies was
recorded in Calarasi - only 217 cases, and Olt -- 244 cases,
Romania Insider relays.


* ROMANIA: Number of Insolvent Companies Down 10%
-------------------------------------------------
The Diplomat reports that the National Trade Register Office
(ONRC) announced that the number of insolvent companies decreased
by 10 percent and reached 6.800 in Q1 of 2014, compared to 7.535
insolvencies recorded in the same interval of last year.

The Diplomat, citing to the institution data, discloses that the
largest number of insolvencies have been recorded in Bucharest,
Bihor and Prahova counties while, at the national level, 26
counties posted a decreased number of insolvent companies. The
counties that recorded the smallest number of insolvencies are
Calarasi, Neamt and Giurgiu, the report relays.

The ONRC data showed that the largest number of insolvencies has
been registered in fields such as trade, constructions and
manufacturing, The Diplomat relays.  In 2013, a number of over
29,500 companies declared insolvent and, since 2008, a total of
130,000 faced payments difficulties, according to ONRC.



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


BRUNSWICK RAIL: Moody's Lowers CFR to 'B1'; Outlook Negative
------------------------------------------------------------
Moody's Investors Service has downgraded Brunswick Rail Limited's
(BRL) corporate family rating to B1 from Ba3 and probability of
default rating to B1-PD from Ba3-PD. Moody's has also downgraded
to B1 from Ba3 the senior unsecured rating on the US$600 million
Eurobond issued by Brunswick Rail Finance Limited and guaranteed
by BRL's key operating subsidiaries. The outlook is negative.

Ratings Rationale

The downgrade reflects Moody's view that BRL's financial metrics,
which have weakened beyond thresholds for the company's Ba3
rating, will not substantially recover over the next 12-18 months
because of (1) the persistently weak pricing environment in the
company's core Russian market, and (2) BRL's ambitious growth
strategy which effectively prioritizes fleet expansion over
deleveraging.

In 2013, BRL's revenues and Moody's-adjusted EBITDA declined as a
result of a downturn in the freight rail transportation market in
Russia and a US$9 million bad debt provision. BRL's Moody's-
adjusted EBITDA margin remained fairly high, 67.7% as of year-end
2013, although down from 75.4% as of year-end 2012. However, in
absolute terms, the company's EBITDA declined 25% from 2012,
raising leverage to 4.6x adjusted debt/EBITDA as of year-end
2013, from 3.5x a year earlier (all metrics are Moody's-
adjusted). In addition, as of year-end 2013 BRL's EBIT interest
coverage declined to 1.5x from 2.1x as of year-end 2012 and its
retained cash flow (RCF)/debt to 13.6% from 21.5% (all metrics
are Moody's-adjusted).

BRL's ambitious growth strategy, whereby it expects to expand its
fleet to 40,000 railcars by 2018 (from 24,619 at end-2013),
indicates in Moody's view a potential priority on growth over
deleveraging to the thresholds for a Ba3 rating. In addition,
Moody's expects that the increase in BRL's dividend payouts
following the issuance of preferred shares placed with the
European Bank for Reconstruction and Development (EBRD, Aaa
stable) in 2014 will restrain the company's potential for
restoring its financial metrics. Even if BRL were not to raise
new debt to finance its capital expenditures (capex) in 2014, its
earnings and cash flow generation would likely remain constrained
by the persistently weak pricing environment in the Russian
market of operating leasing of freight railcars. As a result,
Moody's expects the company's debt/EBITDA to remain above 4.0x
and EBIT interest coverage below 2.0x, which were the thresholds
for a Ba3 rating (all metrics are Moody's-adjusted), over the
next 12 to 18 months.

In addition to the challenging market environment and weakened
financial metrics, BRL's rating reflects the company's (1) small
size on a global scale; (2) customer concentration; (3) a degree
of refinancing risk related to a sizeable debt maturity in
October 2014; and (4) overall exposure to an emerging market
operating environment with a less developed regulatory, political
and legal framework.

More positively, BRL's rating factors in the company's (1) robust
cash-generating business model, underpinned by the company's
multi-year lease contracts and strong customer base; (2) solid
profitability; (3) modern railcar fleet, which is five years old
on average and requires low maintenance capex; (4) $150 million
preferred shares placement with EBRD; and (5) expansion capex
flexibility.

As of year-end 2013, BRL's cash and operating cash flow that
Moody's expected BRL to generate in 2014 was not sufficient to
fully cover its debt obligations and capex program over this
year. The company will need new external funding to repay around
US$100 million of debt maturing in October 2014 along with
financing its anticipated expansion capex. However, Moody's views
the refinancing risk as manageable, because the company is close
to procuring new bank debt to refinance the October 2014
maturity. Moody's will closely monitor BRL's progress in
addressing the refinancing risk.

The negative outlook for BRL's ratings reflects Moody's concern
that further pricing pressure in a challenging macroeconomic
environment could hurt BRL's revenues and earnings.

Factors That Could Lead To An Upgrade Or Downgrade Of The Rating

An upgrade to the ratings in the next 12-18 months is unlikely.
However, Moody's could consider changing the outlook on the
ratings to stable if (1) the company lowered its debt/EBITDA to
below 4.5x and increased its EBIT/interest above 1.7x on a
sustainable basis (all metrics are Moody's adjusted); and (2)
evidence arose that the company is able to defend its tariff
positioning and margins in new and renewed contracts with
customers.

Moody's could consider a downgrade to the ratings if (1) BRL's
debt/EBITDA remains above 4.5x, and its EBIT/interest below 1.7x
over the next 12-18 months (all metrics are Moody's adjusted); or
(2) the company's liquidity deteriorates materially, such that
BRL would be unable to address refinancing risk in a timely
manner. Moody's could also consider a downgrade to the ratings if
the market continues to deteriorate significantly or signs arise
of worsening payment discipline by key customers, which could
adversely affect BRL's operating performance and financial
metrics.

Principal Methodology

Brunswick Rail Limited's and Brunswick Rail Finance Limited's
ratings were assigned by evaluating factors that Moody's
considers relevant to the credit profile of the issuer, such as
the company's (i) business risk and competitive position compared
with others within the industry; (ii) capital structure and
financial risk; (iii) projected performance over the near to
intermediate term; and (iv) management's track record and
tolerance for risk. Moody's compared these attributes against
other issuers both within and outside Brunswick Rail Limited's
and Brunswick Rail Finance Limited's core industry and believes
Brunswick Rail Limited's and Brunswick Rail Finance Limited's
ratings are comparable to those of other issuers with similar
credit risk. Other methodologies used include Loss Given Default
for Speculative-Grade Non-Financial Companies in the U.S., Canada
and EMEA published in June 2009.

Brunswick Rail Limited is one of the largest companies
specializing in operating leasing of freight railcars in Russia.
As of year-end 2013, BRL had a fleet of 24,619 railcars and
generated revenue of US$255 million for the year. BRL was
incorporated in Bermuda in 2004 as a private group. Its
shareholders are institutional and individual investors, none of
which have a controlling stake. BRL leases freight railcars to
large Russian industrial groups and railcar operators under
multi-year operating lease contracts.


KIT FINANCE: Fitch Withdraws 'B' Long-Term IDR; Outlook Stable
--------------------------------------------------------------
Fitch Ratings has withdrawn Russia-based KIT Finance Investment
Bank's (KF) ratings following its merger with Absolut Bank (AB;
B/Stable; b) on April 18, 2014.  As a result, KF ceased to exist
as a legal entity.

Fitch will assess in detail the implications of the merger for
AB's credit profile in the coming months.  AB's ratings take into
account of contagion risks from KF (see, 'Fitch Downgrades
Absolut Bank to 'B' from 'BB+'; Off RWN; Outlook Stable', dated
May 31, 2013), in large part due to the latter's weaker profile
and significant legacy problem and other non-core assets.
However, most of these assets were acquired, before the merger,
by entities associated with Russian non-state pension fund
Blagosostoyanie (which controls AB) to reduce contagion risks.
KF's ratings were as follows (all withdrawn)

  Long-term Issuer Default Rating (IDR): 'B', Outlook Stable
  Short-term IDR: 'B'
  National Long-term Rating: 'BBB-(rus)'; Outlook Stable
  Viability Rating: 'b-'
  Support Rating: '4'



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


FTPYME TDA 6: Fitch Affirms 'CCC' Rating on Class 3SA Notes
-----------------------------------------------------------
Fitch Ratings has affirmed FTPYME TDA 6, FTA as follows:

  EUR7.7m class 2CA notes affirmed at 'BBBsf', Outlook Stable
  EUR1.9m class 2SA notes affirmed at 'BBBsf', Outlook revised to
   Stable from Negative
  EUR4.5m class 3SA notes affirmed at 'CCCsf', Recovery Estimate
   45%

FTPYME TDA 6, F.T.A. is a static cash flow SME CLO originated by
Banco Guipuzcoano.  On closing the issuer used the note proceeds
to purchase a EUR150 million portfolio of secured and unsecured
loans granted to Spanish small and medium-sized enterprises and
self-employed individuals.

Key Rating Drivers

The affirmation and revised Outlook reflect increased credit
enhancement on the notes as a result of amortization.  The
increase has been sufficient to offset risks resulting from
increased portfolio concentration over the past 12 months.
Credit enhancement on class 2CA and 2SA notes increased to 43.3%
from 35.2% during the same period.

Delinquencies are volatile, but have generally increased over the
past 12 months.  Delinquencies of over 90 days are currently 3.5%
of the outstanding portfolio, compared with 1.45% a year ago.
Defaults also increased to 3.18% from 1.8% during the same
period, while the weighted average recovery rate declined to
73.8% from 78.7%.  However, these risks are mitigated by the
increase in credit enhancement.

The portfolio has amortized to 9.4% of its initial balance and
has consequently become more concentrated.  The largest obligor
is currently 3.4% of the outstanding balance and the top 20
obligors represent close to 40% of the portfolio.  The default of
one large obligor could therefore have a substantial impact on
the performance of the transaction.

Class 2CA is guaranteed by the Kingdom of Spain (BBB/Stable/F2).

RATING SENSITIVITIES

Fitch incorporated stress tests to determine the rating's
sensitivity to a change in underlying assumptions.  The first
addressed a reduction of the recovery rate by 25%, whereas the
second simulated an increase in default probabilities by 25%.
Both tests suggest that potential rating action could be
triggered by such a change in scenario and could lead to a
downgrade by one notch on the senior notes, with everything else
being equal.



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


ASTEC PROJECTS: In Administration, Cuts 65 Jobs
-----------------------------------------------
Construction Inquirer reports that cladding specialist Astec
Projects has been placed in administration with the loss of 65
jobs.

It is understood that Astec's bankers at Barclays called in
administrators Deloitte following cash-flow problems at the GBP45
million turnover firm which is based in Reading, according to
Construction Inquirer.

The report notes that Deloitte is now working with 20 retained
senior staff in a bid to find a buyer for the business or novate
some of its current contracts.

"The business is a leading provider of cladding solutions,
trading with a turnover of GBP45 million.  It employed 85 people
from its freehold head office in Reading and satellite offices in
Newport, South Wales and Burntwood, Staffs.  Out of the 85
employees, 20 will be retained, while 65 were made redundant,"
the report quoted Deloitte as saying.

"The administrators plan to cease trading, and retain a small
team whilst investigating the possibility of a sale of the
business or takeover of its approximately GBP30 million order
book.  Following a period of exceptional growth, the business was
unable to fund its working capital requirements going forward,"
Deloitte said, the report relates.

Astec is known to be working on jobs for Mace and Morgan Sindall
and was due to start its largest ever contract for Ballymore this
month.

The report relays that Managing Director Rik Lenney said at the
time: "The last few years have not been the best within the
Construction Industry and Astec Projects like other companies in
our field have experienced difficult times.  But during the
recession we have managed to build upon our success, opening two
new offices; holding and increasing staffing levels; and
recapturing and building turnover."

"Moving into 2014 on the back of winning our largest contract to
date -- the GBP10 million Embassy Gardens project for Ballymore
-- with the hard work and dedication of our staff we have secured
a strong order book and pipeline and look towards a brighter 2014
and beyond," Mr. Lenny said, the report notes.


EXOVA GROUP: S&P Raises CCR to 'BB'; Outlook Stable
---------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on U.K.-based testing, inspection, and
certification services provider Exova Group Ltd. to 'BB' from
'B'.  The outlook is stable.

At the same time, S&P raised to 'BBB-' from 'BB-' its issue
rating on the senior bank facilities issued by Exova PLC, a
subsidiary 100% indirectly owned by Exova and formerly known as
Exova Ltd. These facilities comprise a GBP38.1 million term loan
B due 2016; a GBP38.1 million term loan C due 2017; a GBP19.5
million acquisition facility due 2015, and a GBP35 million
revolving credit facility (RCF) due 2015.  The recovery rating on
these instruments is unchanged at '1', reflecting S&P's
expectation of very high (90%-100%) recovery in the event of a
payment default.

In addition, S&P raised to 'BB-' from 'B-' its issue rating on
the GBP155 million senior unsecured notes, due 2018, issued by
Exova PLC.  The recovery rating on these notes is unchanged at
'5', reflecting S&P's expectation of modest (10%-30%) recovery in
the event of a payment default.

The upgrade follows Exova's completion of its IPO and reflects
S&P's belief that Exova will maintain a more moderate financial
policy as a publicly traded company, notwithstanding its partial
ownership by private equity firm Clayton, Dubiler & Rice (CD&R).
In S&P's experience, publicly traded companies tend to exercise
less aggressive financial policies than firms owned entirely by
private equity interests.  S&P notes that shortly before the IPO,
all of Exova's shareholder loans, accrued payment-in-kind
interest, preference shares, and accrued dividends were converted
into pure common equity.  This dramatically reduced the group's
leverage, as S&P treats all of the abovementioned instruments as
debt under its criteria.

"We estimate that close to 43% of Exova's stock is now publicly
owned, and believe it is possible the proportion of public
ownership could increase over time as private equity owner CD&R
potentially monetizes its investment.  We therefore base our
upgrade primarily on our reassessment of Exova's financial policy
upward to "FS-4" from "FS-6".  This is a result of the
shareholding in the group changing due to the IPO, with CD&R's
stake reducing from 100% to about 57% as a result of the listing
(possibly to 51% if the over-allotment option is fully taken
up)," S&P said.

"We assess Exova's financial risk profile as borderline
"intermediate," as we forecast Standard & Poor's-adjusted debt to
EBITDA of about 3x on Dec. 31, 2014.  At the same time, we
forecast that Exova's funds from operations (FFO) to debt will be
about 23%.  However, due to the group's partial ownership by a
private equity sponsor and our "FS-4" financial policy
assessment, we cap the financial risk profile at "significant"
and the corporate credit rating at 'BB'.  This decision is based
on our criteria for companies owned by financial sponsors," S&O
noted.

The ratings continue to reflect S&P's assessment of Exova's
business risk profile as "fair."  Exova has historically had a
high but stable level of fixed costs, leading to significant
operational gearing.  S&P has noted that when revenues are
rising, operational gearing contributes to improving
profitability.  Exova is benefitting from increasing demand for
its services, and making ongoing efforts to strengthen its sales
force and drive cost-base efficiencies.  These factors have
resulted in good organic revenue growth and supported an
improvement in Exova's adjusted EBITDA margin.

Exova has a limited scale of operations, and relatively limited
short-term cost-base flexibility.  These weaknesses are partially
mitigated by the group's good business position in a profitable
and relatively stable industry, and by its sound geographic and
client-base diversity.  The rating is also supported by Exova's
reputable track record, with solid lab accreditations and client-
specific approvals that provide high barriers to entry.

S&P anticipates that Exova will be able to sustain an EBITDA
margin of about 23% over the next 12-18 months.

S&P's base-case operating scenario for Exova assumes:

   -- Stable, low-single-digit revenue growth in 2014.

   -- No major acquisitions or divestitures.

   -- Substantial positive free cash flow in 2014.  This reflects
      the group's good operational gearing and its relatively low
      capital expenditure (capex) requirements, which S&P
      forecasts at about GBP18 million in 2014.

   -- No additional term debt, at least in the near to medium
      term.

This results in the following credit measures:

   -- FFO to debt of about 23% in 2014; and

   -- Debt to EBITDA of about 3x at the same time.

The stable outlook reflects S&P's view that Exova will keep
generating solid free cash flows, thanks to the group's good
operating leverage and current strong market demand for testing,
inspection, and certification services.

S&P could raise the ratings on Exova if the group were to
deleverage to a level S&P views as commensurate with a financial
risk profile of "intermediate."  Specifically, this means
adjusted debt to EBITDA of less than 3x and FFO to debt of more
than 30% on a sustained basis.

S&P could lower the ratings if it was to see Exova adopt a more
aggressive financial policy or undertake significant debt-funded
acquisitions, leading to an increase in adjusted debt and a
weakening of credit metrics.  S&P could also lower the ratings if
it was to see wholesale management changes that could affect its
assessment of Exova's management and governance.


* UK: Late Payment Causes 20% of Insolvencies, Says R3
------------------------------------------------------
Late payment by customers for goods and services is a primary or
major factor in one-in-five corporate insolvencies, says R3, the
insolvency trade body.

A ComRes survey of R3 members also found that 47% of corporate
insolvency practitioners had seen at least one instance of late
payment being a primary or major factor in a business' failure in
the last year.

Liz Bingham, R3's president, says: "Even if a business has a
great business model and great products and services, it won't
actually be profitable or successful until it gets paid for what
it sells. Late payment is a threat that businesses need to take
very seriously indeed."

"The late payment problem can have significant knock-on effects
within the economy too. The failure of one company can lead to
even more unpaid bills and financial problems for others."

Insolvency practitioners say that the construction sector has by
the far the worst record on late payment.

59% of corporate insolvency practitioners said that the
construction sector had the worst track record for paying bills
on time. 5% of corporate insolvency practitioners identified the
wholesale and retail sectors as the worst offenders on late
payment; manufacturing, the public sector, and hotels and
restaurants were each identified as the worst late-payers by 3%
of corporate insolvency practitioners.

Liz Bingham adds: "The construction sector is notorious amongst
insolvency practitioners for its late payment problems, which are
almost endemic to the sector. Businesses in the sector are also
particularly vulnerable to insolvency. Almost every quarter, the
construction sector sees the highest number of liquidations."

"A high number of insolvencies and a late payment problem aren't
a coincidence. Action on late payment would result in a healthier
construction sector."

In 2012, one-in-five liquidated companies in England & Wales were
in the construction sector.


* UK: Number of Business Failures Up More Than 70%
--------------------------------------------------
BBC News, citing official figures, reports that the number of
companies going bust has increased by more than 70% over the
year.

The Accountant in Bankruptcy (AiB) figures showed 244 Scottish
companies failed during the first quarter of this year, compared
with 143 during the same period in 2014, BBC relates.

The numbers increased by 6.6% on the fourth quarter of 2013, BBC
discloses.

The rise in the number of business failures was described as
unwelcome but predictable by Bryan Jackson, business
restructuring partner with BDO, BBC notes.

"Though the economy is in recovery, many Scottish businesses are
still struggling to cope with the triple challenge of rising
inflation, staff costs and slow spending," BBC quotes Mr. Jackson
as saying.

According to BBC, Yvonne Brady, head of corporate restructuring
at law firm HBJ Gateley, said it was not uncommon for struggling
companies to "run out of steam" when emerging from a recession.


                            *********

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

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

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

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


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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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