TCREUR_Public/140529.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, May 29, 2014, Vol. 15, No. 105



HYPO ALPE-ADRIA: Moody's Lowers Unsecured Debt Ratings to Ba1


INTERNATIONAL BANK: Fitch Rates New Debut Eurobond 'BB(EXP)'


MONITCHEM HOLDCO 2: Moody's Assigns 'B3' Corporate Family Rating
MONITCHEM HOLDCO 2: S&P Assigns 'B' LT Corp. Credit Rating


* Fitch Puts 19 Tranches of 8 Greek RMBS Deals on Watch Positive


ICELAND: Defunct Banks May Be Put Into Bankruptcy


AVENTINE RESOURCES: Declared Insolvent by High Court
GSC EUROPEAN V: Moody's Raises Ratings on 3 Note Classes to B2


CFHL-1 2014: Moody's Assigns Ba1 Rating to EUR23MM Class E Notes
OFFICINE MACCAFERRI: Moody's Assigns B2 Corporate Family Rating
OFFICINE MACCAFERRI: Fitch Assigns 'B(EXP)' Issuer Default Rating
TELECOM ITALIA: Moody's Rates US$1.5BB Fixed-Rate Sr. Notes 'Ba1'


EURASIA INSURANCE: S&P Affirms 'BB+' Ratings; Outlook Stable


BANQUE INTERNATIONALE: Moody's Ups Pref. Stock Rating to B2(hyp)
BANQUE INTERNATIONALE: S&P Raises Rating on EUR225MM Notes to BB-


BIOSEV FINANCE: Fitch Withdraws 'BB-' Rating on US$500MM Notes
STORM 2014-II: Fitch Assigns 'BB(EXP)' Ratings to 2 Note Classes


INR MANAGEMENT: BCR Buys Silver Mountain Project For EUR50-Mil.
* ROMANIA: Corporate Insolvency Down 14.3% in First Four Months


ABSOLUT BANK: Fitch Raises Issuer Default Rating to 'B+'


CM BANCAJA 1: Fitch Affirms 'CCsf' Rating on Class E Notes

U N I T E D   K I N G D O M

CO-OPERATIVE BANK: Names L. Carstensen as Values Committee Chair
MIKE STACEY: Brought Out of Administration
NOTTINGHAMSHIRE RECYCLING: Goes Into Administration, Cuts 29 Jobs
PENTAGON PROTECTION: Facing Insolvency This Week
SOLUS GARDEN: Goes Into Administration


AMIRBANK: S&P Withdraws Suspended 'CCC/C' Corp. Credit Ratings



HYPO ALPE-ADRIA: Moody's Lowers Unsecured Debt Ratings to Ba1
Moody's Investors Service has downgraded the guaranteed public-
sector covered bonds of Hypo Alpe-Adria-Bank International AG
(the issuer/HAA; not rated) to A1 on review for downgrade from
Aa2 on review for downgrade. The downgrade of the guaranteed
covered bonds follows the downgrade of the guaranteed senior
unsecured debt ratings of HAA to Ba1 on review for downgrade from
Baa2 on review for downgrade.

The unguaranteed public-sector covered bonds remain rated A3 on
review direction uncertain.

Ratings Rationale

Guaranteed Public-Sector Covered Bonds

On March 14, 2014 the Austrian government announced plans to
extend the burden sharing for the cost of the wind-down of HAA to
include subordinated debtholders, notwithstanding the deficiency
guarantee from State of Carinthia (A2, stable) that extends to
HAA's guaranteed subordinate debt. Moody's believes that
legislative changes would likely be needed to achieve this
objective. If losses were to be imposed on guaranteed
subordinated debt, this would set a precedent that would
significantly diminish the value of the guarantee for senior
debt. The starting point for Moody's covered bond analysis is the
Ba1 guaranteed senior unsecured debt rating of HAA, which
benefits from the statutory deficiency guarantee from the
Austrian state of Carinthia.

Unguaranteed Public-Sector Covered Bonds

On February 24, 2014, Moody's had downgraded the unguaranteed
public-sector covered bonds of HAA to A3 on review direction
uncertain. The downgrade reflected the lack of transparency
towards the future positioning of these debt instruments. The
situation has not changed since then, and Moody's continues to
believe that the covered bonds will form part of the wind-down
entity. However, the A3 rating also reflects the implied risk to
bondholders if alternative solutions are explored.

Key Rating Assumptions/Factors

Moody's determines covered bond ratings using a two-step process:
an expected loss analysis and a TPI framework analysis.

EXPECTED LOSS: Moody's uses its Covered Bond Model (COBOL) to
determine a rating based on the expected loss on the bond. COBOL
determines expected loss as (1) a function of the probability
that the issuer will cease making payments under the covered
bonds (a CB anchor event); and (2) the stressed losses on the
cover pool assets following a CB anchor event.

The CB anchor for the guaranteed covered bonds is the Ba1
guaranteed senior unsecured debt rating. The CB anchor for the
unguaranteed covered bonds is unpublished.

The cover pool losses for this program are 43.6%. This is an
estimate of the losses Moody's currently models following a CB
anchor event. Moody's splits cover pool losses between market
risk of 33.6% and collateral risk of 10.1%. Market risk measures
losses stemming from refinancing risk and risks related to
interest-rate and currency mismatches (these losses may also
include certain legal risks). Collateral risk measures losses
resulting directly from cover pool assets' credit quality.
Moody's derives collateral risk from the collateral score, which
for this program is currently 20.1%.

The over-collateralization in the cover pool is 338.2 %, of which
HAA provides 38.5% on a "committed" basis. The minimum OC level
consistent with the A1 rating target for the guaranteed covered
bonds is 51.5%, of which the issuer should provide 29.5% in a
"committed" form. The minimum OC level consistent with the A3
rating target for the unguaranteed covered bonds is 53.0%, of
which the issuer should provide 35.5% in a "committed" form.
These numbers show that Moody's is relying on "uncommitted" OC in
its expected loss analysis.

For further details on cover pool losses, collateral risk, market
risk, collateral score and TPI Leeway across covered bond
programs rated by Moody's please refer to "Moody's Global Covered
Bonds Monitoring Overview", published quarterly. All numbers in
this section are based on the most recent Performance Overview
based on data, as per 31 December 2013.

TPI FRAMEWORK: Moody's assigns a "timely payment indicator"
(TPI), which measures the likelihood of timely payments to
covered bondholders following a CB anchor event. The TPI
framework limits the covered bond rating to a certain number of
notches above the CB anchor.

For HAA's public-sector covered bonds, Moody's has assigned a TPI
of "High".

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

The CB anchor is the main determinant of a covered bond program's
rating robustness. A change in the level of the CB anchor could
lead to an upgrade or downgrade of the covered bonds. The TPI
Leeway measures the number of notches by which Moody's might
lower the CB anchor before the rating agency downgrades the
covered bonds because of TPI framework constraints.

The TPI Leeway for HAA's public-sector covered bonds is limited,
and thus any reduction of the CB anchor may lead to a downgrade
of the covered bonds.

A multiple-notch downgrade of the covered bonds might occur in
certain limited circumstances, such as (1) a sovereign downgrade
negatively affecting both the issuer's senior unsecured rating
and the TPI; (2) a multiple-notch downgrade of the issuer; or (3)
a material reduction of the value of the cover pool.


INTERNATIONAL BANK: Fitch Rates New Debut Eurobond 'BB(EXP)'
Fitch Ratings has assigned International Bank of Azerbaijan's
(IBA) upcoming debut eurobond an expected Long-term 'BB(EXP)'
rating.  The agency has also affirmed Russia-based bank IBA-
Moscow's (IBAM), a 100% subsidiary of IBA, senior unsecured debt
at 'BB' and assigned its two upcoming similar issues expected
'BB(EXP)' ratings.

IBA's obligations on the eurobond issue will rank equally with
the claims of other senior unsecured creditors, except the claims
of retail depositors.  Under Azerbaijani law, the claims of
retail depositors rank above those of other senior unsecured
creditors. At end-2013, retail deposits accounted for 28% of
IBA's total liabilities.  The eurobond issue will have a put
option that can be exercised if the state (the current majority
shareholder) ceases, at any time, to control directly or
indirectly 50% plus one share of IBA.  The final rating for the
issue is contingent on the receipt of documents conforming
materially to information already received.

IBAM's bonds are issued in accordance with Russian law and have a
three-year tenor.  Should IBAM fail to make an interest or
principal payment under the terms of the bond, bondholders will
benefit from a put option, allowing them to sell the bonds to
IBA. IBA's offer to purchase the bonds in case of a default by
IBAM represents an irrevocable undertaking and ranks equally with
IBA's other senior unsecured obligations.


The ratings of IBA's eurobond and IBAM's bond issues correspond
to IBA's Long-term foreign currency Issuer Default Rating (IDR,
BB/Stable).  IBA's IDR reflects Fitch's view of a moderate
probability of support for the bank, if needed, from the
Azerbaijan authorities.  This view factors in (i) IBA's majority
(50.2%) state ownership and large market share (around 35% at
end-2013); (ii) substantial funding from state-controlled and
public entities (15% of liabilities at end-2013); (iii) the
bank's small size relative to the sovereign's available
resources; and (iv) the potentially significant reputational
damage for the authorities in case of IBA's default.  The two-
notch differential between the sovereign rating of 'BBB-' and
IBA's rating reflects the track record of quite slow (and limited
in volume) capital support in 2011-2012 and weaknesses in the
bank's corporate governance.


The senior unsecured debt ratings are likely to move in tandem
with IBA's Long-term IDR.  The latter may be upgraded by one
notch if IBA's recapitalization plan announced in October 2013
proves sufficient to reserve higher-risk assets and maintain
satisfactory capitalization over a sustained period.  Conversely,
if new capital is used primarily for further leveraging of IBA's
balance sheet, rating upside will be limited.


MONITCHEM HOLDCO 2: Moody's Assigns 'B3' Corporate Family Rating
Moody's Investors Services assigned a B3 corporate family rating
(CFR) and B3-PD probability of default rating (PDR) to Monitchem
Holdco 2 SA (Holdco2), the parent holding company of the CABB
Group (CABB). Concurrently, Moody's has assigned a provisional
(P)B2 rating with a loss-given default (LGD) assessment of 3
(43%) to the EUR410 million of fixed and floating rate senior
secured notes due 2021 to be issued by Monitchem Holdco 3 SA
(Holdco3), a sub-holding directly controlled by Holdco2, and a
(P)Caa1 rating with an LGD assessment of 5 (78%) to the EUR175
million of senior unsecured notes due 2022 to be issued by
Holdco2. The outlook on all ratings is stable.

The rating on the senior secured and unsecured notes is
provisional, as it is based on the review of draft documentation.
Upon completion of the leveraged buyout and conclusive review of
the final documentation, Moody's will assign a definitive rating
to the notes. A definitive rating may differ from a provisional

Ratings Rationale

The B3 CFR reflects elevated financial risks, mainly as a result
of (1) CABB's high financial leverage, pro-forma for the
leveraged buyout taking place in June 2014 and assuming
additional borrowings needed by the company to partially fund
scheduled investments peaking in the next 18 to 24 months; and
(2) the rating agency's expectation of negative free cash flows
in 2014 and 2015, driven by the high capital expenditures
associated with several organic growth projects that the company
is executing over the next several quarters. Protracted negative
free cash flows will delay deleveraging, keep liquidity under
pressure and result in overall reduced financial flexibility.
These risks are to some extent offset by Moody's expectation that
the company will continue to generate substantial positive
operating cash flows, and that these cash flows will likely grow
further after the main organic growth projects are complete and
start contributing to operating profitability.

The rating is also supported by CABB's (1) strong market
position, as a major European supplier of Monochloro Acetic Acid
(MCA) and customized products used in agro, pharma and specialty
chemicals applications; (2) efficient and flexible production
platform; (3) well-established customer base of large chemical
companies, mainly in the more stable agrochemical end market; and
(4) good near-term visibility of volumes and track-record of
maximizing utilization rates, helped by evergreen contracts with
main clients. These factors mitigate the main weaknesses of the
business profile, which are (1) the modest scale of the company's
revenues and EBITDA in absolute terms and the small absolute size
of the niche markets where it operates; (2) high operating risks,
owing to CABB's dependence on one technological platform and its
narrow product portfolio, coupled with the company's limited
number of production facilities; and (3) high level of customer
and supplier concentration. Furthermore, CABB derives more than
80% of its sales from Europe, where Moody's expects that the
balance of the acetyls market will depend on exports, as domestic
demand remains below supply.

CABB's liquidity profile, pro-forma for the transaction, is
adequate. Cash and cash equivalents on the balance sheet at
closing are projected at approximately EUR50 million.
Furthermore, the Company will have access to a committed
revolving credit facility of EUR100 million, undrawn at closing.
These resources, together with positive operating cash flows,
should be sufficient to accommodate the company's scheduled capex
requirements in 2014 and 2015, as well as modest outflows related
mainly to working capital. If the company performs broadly in
line with its business plan, Moody's anticipates there would be a
limited need to use the revolving credit facility.

The stable outlook reflects Moody's expectation that the company
will maintain adequate liquidity and comfortable headroom under
its financial covenants at all times, and will not increase its
already high leverage any further. The stable outlook also
assumes that CABB will maintain strong operating profitability
and that the vast majority of the planned capex over the next
several quarters will be funded via existing cash and internally
generated cash flows, and that some of the projects currently at
final stage of completion will start to positively contribute to
EBITDA and cash flows in the coming quarters.

What Could Change The Rating UP/DOWN

While there is limited rating upside potential in the near term,
Moody's would consider upgrading the rating over time if the
company were able to improve its credit metrics, with a total
debt/EBITDA adjusted ratio of less than 5.5x on a sustained
basis, while maintaining positive free cash flow generation.

Moody's would consider downgrading the rating if the company were
to perform materially below expectations, and/or in case of a
more aggressive than anticipated financial policy contemplating
special distributions to shareholders or debt-financed
acquisitions, which would result in a further increase in the
leverage ratio exceeding 6.5x on a sustained basis, and in a
material deterioration in liquidity.

Structural Considerations

The senior secured and unsecured notes will benefit from upstream
guarantees from main operating subsidiaries, representing in
aggregate more than 95% of consolidated EBITDA and assets. The
secured notes will be guaranteed on a senior secured basis, and
will benefit from a comprehensive collateral package, including
the main assets of CABB. The unsecured notes will be guaranteed
on an unsecured and subordinated basis by the same subsidiaries,
and will only benefit from a second lien pledge on the shares of
Holdco3 and Bidco, the vehicle controlled by Holdco3 to acquire
CABB from Bridgepoint.

In accordance to Moody's Loss Given Default (LGD) methodology,
the senior secured notes (both fixed rate and FRNs) are rated at
(P)B2, one notch above the CFR. This is as a result of the first-
lien senior secured notes' ranking priority over the senior
unsecured notes, which are rated (P)Caa1, one notch below the
CFR, owing to their subordinated ranking -- both structurally and
contractually via an intercreditor agreement -- in the capital
structure. The notching up of the senior secured notes above the
CFR is also possible owing to the fairly modest amount of secured
bank debt ranking ahead -- both structurally and contractually --
chiefly represented by the EUR100 million of super senior
revolving credit facility, which Moody's assume will never be
fully drawn during its duration

Principal Methodology

The principal methodology used in these ratings was the Global
Chemical Industry Rating Methodology published in December 2013.
Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

CABB, based in Sulzbach am Taunus, near Frankfurt, is one of the
leading suppliers of chemical building blocks based on chlorine
and sulphur, and a market leader in Monochloro Acetic Acid (MCA),
an essential component used in a wide range of applications
ranging from herbicides and personal care to the food industry.
The company is also an important custom manufacturer of chemical
products for global agrochemical, pharmaceutical and fine
chemical companies. In the last twelve months ending March 2014,
CABB reported sales of EUR448 million and a Moody's-adjusted
EBITDA of EUR96 million.

MONITCHEM HOLDCO 2: S&P Assigns 'B' LT Corp. Credit Rating
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating to Monitchem Holdco 2 S.A., the parent
holding company for Germany-based CABB, a manufacturer of
monochloroacetic acid (MCA) and other specialty chlorine- and
sulphur-based chemicals, and a provider of custom manufacturing
solutions.  The outlook is stable.

At the same time, S&P assigned its 'B' issue rating to Monitchem
Holdco 3's proposed EUR410 million senior secured notes.  The
recovery rating on these is '4', indicating S&P's expectation of
average (30%-50%) recovery for creditors in the event of a
payment default.

In addition, S&P assigned its 'CCC+' issue rating to Monitchem
Holdco 2's proposed EUR175 million senior unsecured notes.  The
recovery rating on these notes is '6', indicating S&P's
expectation of negligible (0%-10%) recovery for creditors in the
event of a payment default.

The acquisition by Permira V G.P. Ltd. will be further funded by
EUR233 million of common equity and preference shares issued by
Monitchem Holdco 1 S.a.r.l to Monitchem Holdco 1, which in turn
will be contributed to Monitchem Holdco 2 as common equity.
Based on draft documentation, S&P views the preference shares as
equity under its criteria.

S&P's final issue ratings will depend on its receipt and
satisfactory review of all final transaction documentation.
Accordingly, the ratings on the proposed issues should not be
construed as evidence of final ratings.  If Standard & Poor's
does not receive final documentation within a reasonable time
frame, or if final documentation departs from materials reviewed,
S&P reserves the right to withdraw or revise its ratings.
Potential changes include, but are not limited to, utilization of
bond proceeds, maturity, size and conditions of the bonds,
financial and other covenants, security and ranking.

The rating on Monitchem Holdco 2 reflects S&P's assessments of
CABB's business risk profile as "fair" and financial risk profile
as "highly leveraged."  These lead S&P to assess Monitchem's
anchor at 'b'.  Analytical modifiers had no impact on the rating
outcome.  In 2013, CABB reported about EUR439 million of sales
and EUR93 million of EBITDA.

S&P's assessment of CABB's business risk profile as "fair" takes
into account the company's well-established position as a
provider of custom manufacturing solutions to major players in
the agrochemical industry.  This segment accounts for over 60% of
the company's EBITDA and, in S&P's view, benefits from CABB's
longstanding relationships with its customers, revenue visibility
of at least two to three years, and the trend of large chemical
companies outsourcing the production of chemical (notably
agrochemical) intermediates.

In addition, CABB holds a leading position as a MCA manufacturer,
with about 125,000 tons of production capacity and a 50% market
share in Europe -- the same as Netherlands-based coatings and
chemicals producer, Akzo Nobel.  Further business supports
include CABB's exposure to stable end markets, notably
agrochemicals, food, and personal care, which we estimate at over
70% of revenues.  The company also manufactures other chlorine-
and sulphur-based specialty chemicals, notably acetyl
derivatives, and chlorinated and sulphonated intermediates.

"In our view, CABB's key business constraints comprise its
notable dependence on a single product, MCA; a degree of customer
concentration in the custom manufacturing segment; and some
sensitivity to feedstock prices (notably acetic acid and acetic
anhydride).  That said, we recognize that CABB benefits from
pass-through clauses. A further weakness, in our view, is the
company's small size and scope, notably compared to its key MCA
competitor Akzo Nobel, as well as to its clients, significant
players in the chemicals industry.  We estimate that CABB
generated the majority of its 2013 sales in Europe.
Nevertheless, we believe that the company's exposure to the
fragile macroeconomic environment in the region is less of a
weakness, as we recognize the stability of its end markets," S&P

CABB's "highly leveraged" financial risk profile incorporates its
estimate of Standard & Poor's-adjusted debt to EBITDA of 5.8x and
funds from operations (FFO) to debt of about 10% at year-end
2014, pro forma the refinancing.  S&P's assessment also
incorporates the forecast of moderate negative free operating
cash flows (FOCF), owing to high growth-related capital
expenditure (capex) planned for 2014 and 2015.  Positively,
however, CABB expects its EBITDA to remain resilient and
anticipates medium-term growth as a result of these investments,
which should allow for faster deleveraging from 2016 onward.  S&P
also views positively CABB's pro forma EBITDA cash interest
coverage of 3.1x in 2014.

"Under our base-case scenario, in which we incorporate CABB's
strong reported EBITDA of about EUR32 million in the first
quarter to March 31, 2014, we forecast that CABB could generate
EBITDA of about EUR100 million in 2014.  In our view, the
company's performance in 2014 is likely to be driven by continued
strong contributions from its custom manufacturing business unit,
reflecting healthy demand from the agrochemical and
pharmaceutical sectors, and increased production capacities
thanks to the new fine chemical plant production facility (FCP3)
in Pratteln, Switzerland, which we understand started production
in February 2014," S&P said.

However, S&P assumes high capex of EUR67 million in 2014 and
EUR80 million in 2015 (compared with maintenance spending of
roughly EUR15 million-EUR20 million).  CABB's growth projects
will therefore likely contribute to negative FOCF in those years
under our base-case scenario.  In S&P's view, a key risk mitigant
stems from CABB's policies to have customers co-invest in major
capex projects and secure guaranteed production volumes before
investments start.

CABB's strategic growth projects include debottlenecking and
efficiency initiatives at its existing multi-purpose production
units in Pratteln, Switzerland and Kokkola, Finland; for example,
a 20 kiloton (kt) chlorine capacity expansion to reach self-
sufficient levels of 47kt per year.  Another growth project
relates to its joint venture with a local partner in China to
manufacture MCA.  However, the company also faces regulatory
capex of about EUR48 million to phase-out mercury technology at
its electrolysis plant by December 2017.

Pro forma the acquisition, S&P estimates CABB's adjusted debt at
about EUR632 million, including EUR22 million of postretirement
benefit obligations, and EUR24 million of operating leases.  At
the same time, S&P's adjusted debt is on a gross basis, without
netting the estimated EUR50 million of cash post acquisition.

The stable outlook on CABB reflects S&P's expectation that the
company will continue to perform well in 2014, benefiting from
healthy demand in its end markets of agrochemical, personal care,
and pharmaceuticals.  S&P also anticipates that CABB's liquidity
will be managed prudently, despite high capex plans over the
coming years.  However, S&P sees rating headroom as somewhat
limited, given anticipated modest negative free cash flow over
the near-term and an initial adjusted debt to EBITDA ratio at the
higher end of the 5.0x-6.0x range, which S&P sees as commensurate
with the rating.

S&P could consider lowering the rating if CABB's growth strategy
becomes more aggressive than it currently anticipates, leading to
sizable negative FOCF, unforeseen EBITDA declines, and resultant
adjusted debt to EBITDA of more than 6x.  Downward rating
pressure could also arise if CABB's liquidity or headroom under
its financial covenants deteriorates.

S&P considers an upgrade as less likely at this stage.  However,
S&P could raise the ratings over the medium term if CABB is able
to deliver substantial growth in its EBITDA, notably thanks to
successful execution of its investments; and generate sustainable
positive FOCF, leading to faster deleveraging than S&P's base
case assumes.  S&P views adjusted debt to EBITDA approaching
4.5x-5.0x as commensurate with a 'B+' rating.


* Fitch Puts 19 Tranches of 8 Greek RMBS Deals on Watch Positive
Fitch Ratings has placed 19 tranches of eight Greek RMBS
transactions on Rating Watch Positive (RWP).

The rating actions follow the upgrade of Greece's Sovereign Long-
term Issuer Default Rating (IDR) to 'B'/Stable and the increase
of the Country Ceiling to 'BB'.  Fitch has placed the tranches of
Greek RMBS rated at the SF rating cap (currently B+/Stable), on
RWP as it will review the SF rating cap.  Depending upon the
outcome of the review, the notes may be upgraded to a maximum
rating of 'BB'.

The 19 tranches are:

                                     Securities Class
Estia Mortgage Finance II Plc          Class A
Estia Mortgage Finance Plc          Class A
Grifonas Finance No. 1 Plc          Class A
Grifonas Finance No. 1 Plc          Class B
Kion Mortgage Finance Plc          Class A
Kion Mortgage Finance Plc          Class B
Kion Mortgage Finance Plc          Class C
Themeleion II Mortgage Finance PLC    Class A
Themeleion II Mortgage Finance PLC    Class B
Themeleion II Mortgage Finance PLC    Class C
Themeleion III Mortgage Finance PLC    Class A
Themeleion III Mortgage Finance PLC    Class M
Themeleion III Mortgage Finance PLC    Class B
Themeleion III Mortgage Finance PLC    Class C
Themeleion IV Mortgage Finance Plc    Class A
Themeleion IV Mortgage Finance Plc    Class B
Themeleion Mortgage Finance PLC    Class A
Themeleion Mortgage Finance PLC    Class B
Themeleion Mortgage Finance PLC    Class C


In line with Fitch's 'Criteria for Sovereign Risk in Developed
Markets for Structured Finance and Covered Bonds', SF and covered
bond ratings are constrained at the lower of the Country Ceiling
and the SF rating cap.  The Country Ceiling has been increased
and Fitch is now reviewing the SF rating cap based upon the
updated macroeconomic outlook.

The notes are backed by portfolios of loans that have shown
broadly stable performance.  The tranches have built-up
substantial credit enhancement since closing, which could
potentially withstand rating stresses commensurate with a higher
SF rating cap.


Further changes to the Greek sovereign IDR, Country Ceiling or
rating cap may result in corresponding changes on the tranches
rated at the cap.

A change in legislation that entails higher repossession activity
would cause the agency to revise its assumptions and could also
impact the ratings.


ICELAND: Defunct Banks May Be Put Into Bankruptcy
Simon Johnson at Reuters reports that Iceland Finance Minister
Bjarni Benediktsson warned on Tuesday Iceland's defunct banks
could be put into bankruptcy if creditors do not agree to a
haircut on debts owed by Kaupthing, Glitnir and Landsbanki, which
collapsed in 2008 owing more than US$75 billion.

Iceland slapped on capital controls after the financial meltdown,
hampering much needed investment, but these cannot be removed
until a deal to wind up the left-overs of the old banks -- around
ISK2,500 billion (US$22 billion) in cash, shares and bonds -- is
reached with creditors, Reuters relates.

Bankruptcy would mean a fire-sale of assets and probably much
lower recoveries for creditors, who have claims against the old
banks totaling ISK7,530 billion  (US$66 billion), dwarfing
Iceland's 2013 GDP of ISK1,786 billion, Reuters notes.

Mr. Benediktsson, as cited by Reuters, said plans put forward so
far by the old banks for paying creditors did not go far enough
to reduce the risk of destabilizing the economy and the krona.

But he would not be drawn on how much of a haircut, creditors --
such as Bayerische Landesbank and Deutsche Bank Trust Company
Americas -- would need to take, Reuters says.

Kaupthing and Glitnir put forward plans to pay creditors in late
2012, but say they have yet to receive a formal response from the
central bank, which, along with the Finance Ministry has to okay
any deal, Reuters relays.  In May, the estate of Landsbanki
agreed a deal with its creditors to extend repayment of around
ISK226 billion in bonds issued when the government took over the
bank, Reuters recounts, Reuters recounts.  But the terms of the
deal -- including exemptions from capital controls -- needed to
be considered carefully, Reuters says.

According to Reuters, while Iceland will not risk financial
stability for a quick fix to the problem of the old banks,
Mr. Benediktsson said capital controls could be removed
relatively quickly, if a comprehensive agreement with creditors
is reached.


AVENTINE RESOURCES: Declared Insolvent by High Court
Ann O'Loughlin at Irish Examiner reports that the High Court has
heard the directors of Aventine Resources, formerly Minmet plc,
have repeatedly failed to file annual returns over a three-year
period and the firm is effectively insolvent.

Shelley Horan, counsel for the Director of Corporate Enforcement,
said that the shareholders of Aventine Resources have been
"completely handicapped" by the failure of the directors to meet
their basic obligation to file returns for 2010, 2011 and 2012,
Irish Examiner relates.

The director is seeking that Aventine directors John Francis
Liwosz and Anthony William Brown be disqualified from acting as
directors of any company over the failure to file returns or
financial statements, Irish Examiner discloses.

According to Irish Examiner, opening the case on Tuesday,
Ms. Horan said Aventine has lain dormant since 2008 and is
effectively insolvent but has not been put into liquidation.

Aventine Resources is a Dublin-based mineral exploration company.

GSC EUROPEAN V: Moody's Raises Ratings on 3 Note Classes to B2
Moody's Investors Service announced that it has taken the
following rating actions on the following classes of notes issued
by GSC European CDO V PLC:

EUR75M (Current outstanding balance of EUR46,789,279) Class A1
Delayed Draw Floating Rate Notes due 2023, Upgraded to Aaa (sf);
previously on Oct 4, 2011 Upgraded to Aa2 (sf)

EUR147M (Current outstanding balance of EUR91,706,987) Class A2
Floating Rate Notes due 2023, Upgraded to Aaa (sf); previously
on Oct 4, 2011 Upgraded to Aa2 (sf)

EUR44M Class B1 Subordinated Notes due 2023, Upgraded to B2
(sf); previously on Oct 4, 2011 Confirmed at Caa2 (sf)

EUR29M Class B2 Subordinated Notes due 2023, Upgraded to B2
(sf); previously on Oct 4, 2011 Confirmed at Caa2 (sf)

EUR5M Class B3 Subordinated Notes due 2023, Upgraded to B2 (sf);
previously on Oct 4, 2011 Confirmed at Caa2 (sf)

GSC European CDO V PLC, issued in May 2007, is a single currency
Collateralised Loan Obligation ("CLO") backed by a portfolio of
mostly high yield European leveraged loans. The portfolio is
managed by GSC ACQUISITION HOLDINGS, LLC, an affiliate of Black
Diamond Capital Management, L.L.C. and this transaction ended its
reinvestment period in May 2013. It is predominantly composed of
senior secured loans.

Ratings Rationale

The rating actions on the notes are primarily a result of the
significant deleveraging of the Class A1 and A2 and the
subsequent increase in the overcollateralization ratio ("OC
ratio") of the senior notes. In aggregate, Classes A1 and A2 have
paid down by EUR69.7 million (31% of their combined closing
balance) on the on the last two payment dates. As a result, in
March 2014, the Class A OC ratio reported by the trustee has
increased to 139.34% compared to 127.22% twelve months ago.

The rating actions on the subordinated notes reflect the
reduction in rated balance as detailed below. The Class B1, Class
B2 and Class B3 notes ("Class B Notes") are exposed to the first
losses in the portfolio and benefit from the excess spread
available in the CLO structure. The ratings of the Class B Notes
address the repayment of the Rated Balance on or before the legal
final maturity. The 'Rated Balance' is equal at any time to the
principal amount of the Class B Notes on the Issue Date increased
by the Rated Coupon of 0.25% per annum respectively, accrued on
the Rated Balance on the preceding payment date minus the
aggregate of all payments made from the Issue Date to such date,
either through interest or principal payments. The Rated Balance
may not necessarily correspond to the outstanding notional amount
reported by the trustee. In particular, on the last two payment
dates in May 2013 and November 2013, class B notes received in
total approximately EUR7.5 million of payments that have
contributed to reduce the rated balance of the notes.

The credit quality of the collateral pool has remained steady
marginally as reflected in the average credit rating of the
portfolio (measured by the weighted average rating factor, or
WARF). As of the trustee's March 2014 report, the WARF was 2,997
compared with 2956 in March 2013. Over the same period, the
reported diversity score reduced from 38 to 30.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base
case, Moody's analyzed the underlying collateral pool as having
an EUR pool with performing par and principal proceeds balance of
EUR206.7 million, and defaulted par of EUR3.3 million, a weighted
average default probability of 20.75% (consistent with a WARF of
3251 over a weighted average life of 3.5 years), a weighted
average recovery rate upon default of 48.03% for a Aaa liability
target rating, a diversity score of 26 and a weighted average
spread of 3.58%.

Moody's analysis is based on the March 2014 trustee report.
Moody's notes that the May 2, 2014 trustee report has been
recently published; however, there are no material differences in
key portfolio metrics such as WARF, diversity score and weighted
average spread between these dates.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool. For a Aaa liability target rating,
Moody's assumed that 94.4% of the portfolio exposed to senior
secured corporate assets would recover 50% upon default, while
the non first-lien loan corporate assets would recover 15%. In
each case, historical and market performance and a collateral
manager's latitude to trade collateral are also relevant factors.
Moody's incorporates these default and recovery characteristics
of the collateral pool into its cash flow model analysis,
subjecting them to stresses as a function of the target rating of
each CLO liability it is analyzing.

Methodology Underlying the Rating Action:

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

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

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed lower credit quality in the portfolio to
address refinancing risk. Loans to European corporates rated B3
or lower and maturing between 2014 and 2015 make up approximately
11.65% of the portfolio, which could make refinancing difficult.
Moody's ran a model in which it raised the base case WARF to 3373
by forcing ratings on 50% of the refinancing exposures to Ca; the
model generated outputs that were within one notch of the base-
case results.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
notes, in light of uncertainty about credit conditions in the
general economy. CLO notes' performance may also be impacted
either positively or negatively by 1) the manager's investment
strategy and behavior and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties due to because of embedded ambiguities.

Additional uncertainty about performance is due to the following:

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

2) Around 33% of the collateral pool consists of debt obligations
whose credit quality Moody's has assessed by using credit

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

In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
other Moody's analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision.


CFHL-1 2014: Moody's Assigns Ba1 Rating to EUR23MM Class E Notes
Moody's Investors Service has assigned definitive long-term
credit ratings to notes issued by CFHL-1 2014:

Issuer: CFHL-1 2014

EUR428,000,000 Class A1 Asset-Backed Floating Rate Notes due
April 28, 2054, Assigned Aaa (sf)

EUR376,000,000 Class A2-A Asset-Backed Floating Rate Notes due
April 28, 2054, Assigned Aaa (sf)

EUR33,000,000 Class B Asset-Backed Floating Rate Notes due
April 28, 2054, Assigned Aa1 (sf)

EUR28,000,000 Class C Asset-Backed Floating Rate Notes due
April 28, 2054, Assigned A1 (sf)

EUR19,000,000 Class D Asset-Backed Floating Rate Notes due
April 28, 2054, Assigned Baa1 (sf)

EUR23,000,000 Class E Asset-Backed Floating Rate Notes due
April 28, 2054, Assigned Ba1 (sf)

Moody's has not assigned any rating to the EUR20.4 million
Subordinated Units (the nominal amount is EUR200,000 but the
issue price is around 10,218.2% of the nominal amount and
therefore the issuer receives around EUR20.4 million for the
Subordinated Units) or the EUR300 for the Residual Units.

This transaction is the first public securitization by Credit
Foncier de France (A2/P-1), hereafter called "CFF" since 2008,
with the portfolio consisting of French prime residential home
loans backed by first economic lien mortgages or equivalent
third-party eligible guarantees "pret cautionne", which are well-
known products by Moody's.

Ratings Rationale

The rating of the notes is based on an analysis of the
characteristics of the underlying pool of home loans, sector wide
and originator specific performance data, protection provided by
credit enhancement, the roles of external counterparties and the
structural integrity of the transaction.

The expected portfolio loss of 1.8% of original balance of the
portfolio at closing and the MILAN required Credit Enhancement
"MILAN CE" of 6.7% served as input parameters for Moody's cash
flow model, which is based on a probabilistic lognormal
distribution as described in the report "The Lognormal Method
Applied to ABS Analysis", published in July 2000.

The key drivers for the portfolio expected loss, which is in line
with the average prime French RMBS transaction are: (i) 13 years
of vintage data from the originator's book, only considering
loans with similar eligibility criteria as for the pool, which
shows that defaults for mortgage loans are significantly higher
than for "caution"-loans ("prets cautionnes") and that the
overall default rates historically have been between 2% -- 6%
with the vintages originated from 2008 and forward showing higher
default rates than the older ones at the same point in time; (ii)
13 years of dynamic delinquency from the originator's book (again
only considering loans with similar eligibility criteria) which
again shows that delinquencies are significantly higher for
mortgage loans compared to caution-loans; (iii) 10 years of
vintage data for mortgage loans and 8 years of vintage data for
caution-loans showing significantly higher recovery rates for
caution-loans and that the overall recovery rate two year after
the default is around 60%; (iv) the performance of the previous
transactions; (v) the current macroeconomic environment and
Moody's view of the future macroeconomic environment in France;
(vi) benchmarking with other French RMBS transactions.

The key drivers for the MILAN CE, which is lower than the average
prime French RMBS transaction, are: (i) Significantly lower LTVs
with the WA Current LTV in this transaction around 68%; (ii)
around 18% of the loans in the pool are "pret cautionne" loans
guaranteed by Credit Logement (Aa3) for which Moody's have given
benefit to the guarantee in the scenarios where Credit Logement
is expected to be able to perform on the guarantee, which
consequently reduce the MILAN number; and in the remaining
scenarios Moody's have made a haircut on the property values and
increased the foreclosure lag and foreclosure costs, which
consequently increase the MILAN number in those scenarios; (iii)
Months Current data which shows that around 83% of the loans in
the pool have never been in arrears which together with a WA
seasoning of 4 years are positive features; (iv) the pool does
not contain interest only loans, buy-to-let loans, floating rate
loans or loans extended to non-residents which are also positive
features; (v) while the fact that almost 70% of the loans have
been originated through brokers and intermediaries is seen as a
negative feature.

Interest Rate Risk Analysis: The transaction benefits from an
interest rate swap with CFF (A2/P-1) as Swap Counterparty. Under
the interest rate swap the Issuer pays the scheduled interest
less senior fees and expenses less a guaranteed excess spread of
1.0% per annum over the ingoing balance of the portfolio each
payment period while the Swap Counterparty pays the interest
payable on the Notes over a notional equal to the Notes less any
unpaid PDL. The interest rate swap documentation is not compliant
with Moody's standard swap de-linkage criteria, with the main
difference being that the collateral trigger has been set at loss
of A3 (instead of A2/P-1) and the transfer trigger at loss of
Baa1 (instead of A3/P-2) and Moody's has therefore considered the
increased linkage in the credit ratings on the Notes.

Transaction structure: The transaction benefits form a non-
amortizing reserve fund equal to 0.5% of the original balance of
the Class A to Class E Notes. The reserve fund is fully funded at
closing through the proceeds from the issuance of the notes and
units and it is replenished before the OC PDL (the PDL on the
Subordinated Units) which means that the reserve fund is acting
both as credit enhancement and a source of liquidity for the
Class A to Class E Notes. The transaction also benefits from an
amortizing liquidity reserve equal to 3.0% of the Class A to
Class E Notes outstanding balance. The liquidity reserve is
funded through principal collections and it can be used to cover
senior fees and expenses and interest payments on the Class A to
Class E Notes.

Operational Risk Analysis: The home loans will be serviced by CFF
(A2/P-1). There is no back-up servicer appointed at closing and
no rating trigger for appointing a back-up servicer. The
management company, Eurotitrization, will facilitate the search
for a substitute servicer if needed. To help ensure continuity of
payments both the terms and conditions of the notes and the swap
documents contain estimation language whereby Eurotitrization
will estimate the cashflows based on the most recent servicer
reports in case no updated servicer report is available. The
transaction also benefits from the equivalent of two quarters of
liquidity through the liquidity reserve and the reserve fund.

The definitive ratings address the expected loss posed to
investors by the legal final maturity of the notes. In Moody's
opinion, the structure allows for timely payment of interest and
ultimate payment of principal with respect to the Class A to
Class E Notes by legal final maturity. Other non-credit risks
have not been addressed, but may have significant effect on yield
to investors.

Moody's Parameter Sensitivities: If the portfolio expected loss
was increased to 5.0% from 1.8% and the MILAN CE was increased to
10.72% from 6.7% the model output indicates that the Class A1 and
Class A2-A notes would still achieve Aaa assuming that all other
factors remained unchanged. Moody's Parameter Sensitivities
provide a quantitative/model-indicated calculation of the number
of rating notches that a Moody's structured finance security may
vary if certain input parameters used in the initial rating
process differed. The analysis assumes that the deal has not aged
and is not intended to measure how the rating of the security
might migrate over time, but rather how the initial rating of the
security might have differed if key rating input parameters were
varied. Parameter Sensitivities for the typical EMEA RMBS
transaction are calculated by stressing key variable inputs in
Moody's primary rating model.

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

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

Significantly different loss assumptions compared with our
expectations at close due to either a change in economic
conditions from Moody's central scenario forecast or
idiosyncratic performance factors would lead to rating actions.
For instance, should economic conditions be worse than forecast,
the higher defaults and loss severities resulting from greater
unemployment, worsening household affordability and a weaker
housing market could result in downgrade of the ratings or an
upgrade in case the economic conditions were significantly better
than forecast. Deleveraging of the capital structure or
conversely a deterioration in the notes available credit
enhancement could result in an upgrade or a downgrade of the
ratings, respectively. Additionally counterparty risk could cause
a downgrade of the rating due a weakening of the credit profile
of a transaction counterparty. Finally, unforeseen regulatory
changes or significant changes in the legal environment may also
result in changes of the ratings.

OFFICINE MACCAFERRI: Moody's Assigns B2 Corporate Family Rating
Moody's Investors Service has assigned to Officine Maccaferri SpA
a B2 corporate family rating (CFR) and a provisional (P)B2 rating
to its proposed EUR200 million of senior unsecured notes due in
2021. Moody's has also assigned a B1-PD probability of default
rating (PDR). The outlook on the ratings is stable. This is the
first time Moody's has assigned a rating to Officine Maccaferri.

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

"The B2 CFR assigned to Officine Maccaferri reflects the
company's small size compared with similarly rated companies and
its customer base and what Moody's perceives as low barriers to
entry in some of the largest cash contributing activities of the
company. Key credit metrics are also in line with a mid-single-B
company", says Paolo Leschiutta, a Moody's Vice President --
Senior Credit Officer and lead analyst for Officine Maccaferri.
"However, the rating also benefits from Officine Maccaferri's
market leadership position in its niche products, a solid track
record, a very well geographically diversified revenue base and
its prudent financial policy and strong engineering expertise.
All together and based on the current expectation in terms of
credit metrics development, the rating is strongly positioned in
its rating category", adds Mr. Leschiutta. In this context of a
large amount of existing short term debt, the CFR assumes a
successful bond issuance.

Ratings Rationale

Moody's recognizes Officine Maccaferri's excellence in providing
innovative solutions to its customers and a number of technology
advanced products within its offering (ex, the Geosynthetics
division representing 26% of group revenues), which allowed the
group to report double-digit organic revenue growth over the past
ten years. The company has been also successful in diversifying
its operations across the world, with Latin America, the largest
contributing region, and EMEA, excluding Italy, representing
respectively 35% and 32% of 2013 reported revenues. Moody's also
notes that customer concentration is low, while at the moment,
the company holds a strong market leadership position in its
niche products. However, this is unable to offset low revenue
visibility given the small size and short-term nature of the
orders the company receives from its customers. Overall, the
rating is currently strongly positioned in its rating category.

The company's products represent a small part of the overall
costs of the projects where these are applied. Although the
company's strong competency in providing consultancy services for
its customers allow for some protection to market share and
profitability, in Moody's view, a large portion of the company's
products (i.e., the Double Twist mesh division, representing 37%
of revenues) is more exposed to possible erosion by competitors
initiatives. However, despite the group's reliance on public
spending on large infrastructure projects, Officine Maccaferri's
presence in growing countries (like Brazil, Russia and China) and
its unique expertise provide for further growth potential.

Officine Maccaferri is looking to issue EUR200 million notes, the
proceeds of which will be used to repay existing long and short-
term debt and upstream a EUR16 million dividend to its parent
company (on top of the EUR26 million already distributed during
the first quarter of 2014). The ratings assigned to Officine
Maccaferri reflect Moody's expectation that, pro-forma for the
bond issue, the company will maintain key credit metrics in line
with a mid single-B rating and in particular showing a Moody's-
adjusted debt to EBITDA of around 5x and a retained cash flow
(RCF) to net debt around 15%. These metrics strongly position the
company in its rating category, also recognizing Officine
Maccaferri's prudent financial policy. However, this is offset by
the company's modest size and reliance on emerging markets to
drive further growth. More positively, the ratings are supported
by a well-invested asset base and Moody's expectation that the
company will generate positive free cash flow thanks to low capex

Assuming repayment of existing short term debt following the bond
issue, Moody's expect Officine Maccaferri to maintain a good
liquidity. This will be supported by a small factoring facility
of EUR30 million, which Moody's expects to be only partially
utilised. The facility will mature in 2017. Cash on balance
sheet, following the bond issue is expected at around EUR46
million. These sources of liquidity, together with cash flow from
operations in the range of EUR30 million per annum are enough to
cover working capital swings and capital expenditure which
Moody's expects at around EUR10-15 million per annum on an
ongoing basis. Cash needs during the first quarter are
significant with modest cash flow generation and working capital
needs of approximately EUR30 million.

(P)B2 rating on the notes --

The rating on the EUR200 million notes, in line with the CFR,
reflects the fact that the proposed bond issuance will represent
most of the group capital structure. The notes will be issued by
Officine Maccaferry SpA, the consolidating entity of the group,
and will be guaranteed on a senior and unconditional basis by its
operating subsidiaries, representing however, only 54% of EBITDA
on a consolidated basis. The notes will be a senior unsecured
obligation of the issuer and will be subordinated to the senior
secured EUR30 million factoring facility. However, the small size
of the factoring line is not enough, in Moody's view to cause a
subordination of the senior unsecured debt instrument. Along with
these instruments, the company's capital structure will also
include a small number of existing credit lines which are
unsecured, some of which will be at non guarantors level.

Rationale For The Stable Outlook

The outlook on Officine Maccaferri's ratings is stable,
reflecting Moody's expectation that the group will pursue a
growth strategy maintaining a conservative financial policy and
generating positive free cash flow. Financial leverage is
expected to reduce over time.

What Could Change The Rating - UP/DOWN

A reduction in financial leverage towards 4.5x, together with a
track record of solid performances, positive free cash flow
generation and solid liquidity could result in a rating upgrade
over time. Conversely, any deterioration in the company's
profitability or cash generation leading to a financial leverage
above 5.5x or to an EBIT interest cover below 1.5x on an ongoing
basis or any weakening in the company's liquidity profile could
lead to a rating downgrade.

Principal Methodology

The principal methodology used in rating Officine Maccaferri was
the Global Building Material Industry rating methodology,
published in July 2009. Other methodologies used include Loss
Given Default for Speculative-Grade Non-Financial Companies in
the U.S., Canada and EMEA, published in June 2009.

Officine Maccaferri, incorporated in Bologna, Italy, is a leading
designer and manufacturer of environmental engineering products
and solutions, with focus on Double Twist mesh products, soil
reinforcement polymeric materials and vertical concrete retaining
walls. During 2013 the company generated revenues of EUR486
million and EBITDA of EUR47 million. The company is part of the
more diversified Maccaferri Group which activities (EUR1.2
billion of revenues) range from environmental engineering, sugar,
tobacco and biotechnologies.

OFFICINE MACCAFERRI: Fitch Assigns 'B(EXP)' Issuer Default Rating
Fitch Ratings has assigned Italy-based building products company
Officine Maccaferri S.p.A. (Officine Maccaferri) an expected
Long-term Issuer Default Rating (IDR) of 'B(EXP)' and an expected
senior unsecured rating of 'B(EXP)'.  The Outlook on the Long-
term IDR is Stable.

Fitch has also assigned an expected rating of 'B(EXP)'/'RR4(EXP)'
to the company's prospective EUR200 million 2021 bond.  The
proceeds of the notes will be used for refinancing existing debt,
to acquire the real estate of the company's headquarters, to pay
a special dividend to the company's shareholders and for general
corporate purposes.  The notes are rated at the same level as
Officine Maccaferri's IDR as they will constitute direct,
unsecured and unconditional obligations of the issuer and some of
its guarantor subsidiaries.

The assignment of the final rating for the bond is contingent
upon the receipt of final documentation conforming to information
already received, and for Officine Maccaferri on the successful
issue of the EUR200 million bond.

The bonds will be structurally subordinated to existing secured
debt at the subsidiary level (although bond documentation limits
the total secured debt to EUR65 million including the existing
factoring facility).  In addition only certain subsidiaries
(totaling approximately 54% of consolidated revenue, 54% of
consolidated EBITDA and 54% of total assets) will provide
upstream guarantees to the issuer.  Financial covenants are
limited to a fixed charge cover ratio of over 2x.

Officine Maccaferri's ratings reflect its small size, a weak
albeit improving financial profile, exposure to competitive
pressures which restrict its pricing power, and the industry's
medium-sized barriers to entry.  The ratings also reflect the
company's average business risk profile, characterized by its
technical expertise, leadership position in a small niche market,
and geographic diversity.

The 'B(EXP)' senior unsecured bond rating reflects Fitch's
recovery analysis of the company on a going concern basis, using
an industry-consistent multiple applied to an appropriately
stressed EBITDA level.  This results in 50% recoveries and a
Recovery Rating of 'RR4' and leads to an equalization with the


Weak to Moderate Financial Profile

Post-refinancing, Officine Maccaferri's financial profile is best
characterized as weak, although it is expected to improve over
the medium term.  Gross leverage is expected to be over 5x at
end-2014, and to remain over 4x to end-2017, assuming no material
debt reduction, which may occur if the company chooses to deploy
its liquidity reserves towards this purpose.  Free cash flow
(FCF) is expected to be slightly over 1% of revenue in the coming
years, an improvement on the negative FCF generation in the last
four years which saw considerable investment in capacity growth,
but this is dependent on the company maintaining a conservative
dividend policy, reduced capex and stable working capital flows.

Given the flexibility in the cost structure, the company's EBIT
margins are also expected to remain stable between 6% and 7% over
the coming years (6.6% in 2013), which is in line with the
expected ratings.  FFO fixed charge cover, which was at 2.5x at
end-2013, is expected to approach 3x in the next three years.

Small Geographically Diversified Market Leader

The company is a leader in a small, niche market and provides
somewhat unique products.  Officine Maccaferri also benefits from
geographic diversity, which reduces the risks that come with
customer concentration, and from its reliance on the fiscal
strength of a limited number of government bodies that are its
customers.  It is nevertheless a small company operating in a
market with medium-sized barriers to entry, and is exposed to
competitive pressures of substitute products, which limits its
pricing power to a degree.

Officine Maccaferri is well placed to benefit from some favorable
long-term key drivers of its business.  This includes
environmental regulation, global urbanization, emerging markets
development needs, pent-up demand for infrastructure in developed
markets following several years of low investment as a
consequence of the financial crisis, and the increasing
complexity of many new projects which require the kind of expert
technical solutions and experience of Officine Maccaferri.

Corporate Governance

Officine Maccaferri is part of a family-owned and -run
conglomerate.  While Fitch has not factored in support to other
group companies in its ratings, evidence of excessive cash
channelling to other group entities may have a negative rating
impact.  Investors can gain some comfort from certain measures
and policies put in place to improve governance, including
largely non-recourse debt issuance among its operating entities
as well as minimal related-party transactions within the group.
Dividend upstreaming from Officine Maccaferri to the parent,
S.E.C.I. S.p.A, will also be restricted under the proposed bond
issue to 50% of net profits.


Positive: Future developments that could lead to positive rating
actions include:

  - FFO adjusted leverage below 4x
  - FFO fixed charge cover above 3.5x
  - FCF above 2% of revenue
  - EBIT margin above 7%; all on a sustained basis

Negative: Future developments that could lead to negative rating
action include:

  - FFO adjusted leverage above 5x
  - FFO fixed charge cover below 2.5x
  - Negative FCF
  - EBIT margin below 5%, all on a sustained basis

TELECOM ITALIA: Moody's Rates US$1.5BB Fixed-Rate Sr. Notes 'Ba1'
Moody's Investors Service has assigned a Ba1 rating to the US$1.5
billion fixed-rate senior notes issued by Telecom Italia S.p.A.
The notes are senior unsecured and rank pari-passu with the rest
of rated debt and are issued pursuant to Rule 144A of the
Securities Act. The outlook on the rating is negative.

"The Ba1 rating assigned to the notes is in line with Telecom
Italia's Ba1 long-term issuer rating, which reflects uncertainty
regarding the company's strategy and ability to strengthen its
balance sheet sufficiently to reverse the declining trend in its
domestic revenues and EBITDA," says Carlos Winzer, a Senior Vice
President and lead analyst for Telecom Italia.

Ratings Rationale

The rating assignment reflects the adverse effect on Telecom
Italia's cash flow and balance sheet of deteriorating domestic
revenues and EBITDA, which are a result of the still weak,
although improving Italian economy; high unemployment; adverse
regulatory effects and still intense competition in the country.
Telecom Italia's business risk is high as a result of the
company's weak operating performance and low visibility regarding
management's ability to reverse the declining trend. However,
Telecom Italia's Ba1 rating is supported by the company's (1)
scale and geographical diversification, as a result of its
presence in Brazil; (2) integrated telecoms business model, with
strong market positions in both the fixed and mobile segments;
(3) high capital intensity; (4) continued commitment to debt
reduction and financial discipline; and (5) high operating
margins, ongoing operational expenditure (opex) reductions and
strong liquidity.

The Ba1 rating also factors in the deterioration in Telecom
Italia's operating performance, including an expected further
decline in EBITDA this year, and the challenges management is
facing to offset the higher business risk with a stronger
financial profile.

Moody's considers Telecom Italia's liquidity to be adequate,
based on the company's free cash flow generation, available cash
resources and committed credit lines, as well as an extended debt
maturity profile. This new US$1.5 billion, 10-year bond issue
will support Telecom Italia's refinancing and enhances the debt
maturity profile, which is fairly evenly spread out and back-
loaded. In fact, more than 50% of liabilities are due beyond 2016
(average debt maturity of seven years).

Rationale for Negative Outlook

The negative outlook reflects Moody's expectation that Telecom
Italia will continue to face substantial challenges in the rest
of 2014 and 2015, including the slow recovery of the weak economy
in Italy, adverse regulation and high levels of competition, all
of which have served to erode the company's domestic revenues and
EBITDA. Although the company's international diversification
mitigates the domestic pressure on its revenues, limited cash up-
streaming and the expected lower growth rates at its Brazilian
subsidiary Telecom Italia Mobile (TIM) Brazil could challenge
Telecom Italia's ability to meet group financial guidance.

What Could Change The Rating Down/Up

Moody's does not currently anticipate upward rating pressure.
However, the rating agency could consider stabilizing the outlook
if the company were able to contain the deterioration in its
financial metrics on the back of a coherent strategy and
supportive macro and operating conditions in Italy. Moody's could
consider a rating upgrade if, alongside the conditions for the
stable outlook, credit metrics were to improve, including a net
adjusted debt/EBITDA comfortably below 2.8x on a sustainable

Further downward pressure on the rating could potentially result
if (1) the overall economic conditions in Italy continued to
negatively affect Telecom Italia's operating performance and
management is unable to offset this by strengthening the balance
sheet; and (2) the company's net adjusted debt/EBITDA ratio
deteriorates to above 3.2x with no prospect of improvement.

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

Telecom Italia S.p.A. is domiciled in Rome and Milan (Italy).
It's the leading integrated telecommunications provider in Italy,
delivering a full range of services and products, including
telephony, data exchange, interactive content and information and
communications technology solutions. The group reported some 13.2
million fixed-network physical access telephone lines and 31.2
million mobile telephone lines in Italy as of December 2013. The
group is also one of the largest telecoms players in the
Brazilian mobile market, operating through its subsidiary Telecom
Italia Mobile (TIM) Brasil, which had 73.4 million mobile
telephone lines as of December 2013. Telecom Italia's major
shareholder is a consortium (Telco S.p.A.) composed of Telefonica
S.A. (Baa2 negative), the insurance company Generali, and the
banks Mediobanca and Intesa Sanpaolo. This consortium held a
22.4% stake in Telecom Italia as of December 31, 2013 and is
governed by a shareholder agreement.


EURASIA INSURANCE: S&P Affirms 'BB+' Ratings; Outlook Stable
Standard & Poor's Ratings Services said it had affirmed its 'BB+'
insurer financial strength and counterparty credit ratings on
Kazakhstan-based Eurasia Insurance Co.  The outlook is stable.

At the same time, S&P affirmed its 'kzAA-' Kazakhstan national
scale rating on the company.

The ratings predominantly reflect S&P's view of Eurasia's
business risk profile as fair and its financial risk profile as
less than adequate.  S&P's assessment of the financial risk
profile stems from Eurasia's high risk profile and less than
adequate average credit quality of its investments.  S&P derives
its 'bb+' anchor for Eurasia from the combination of these
factors.  Eurasia's adequate enterprise risk management and
satisfactory management and governance are neutral factors for
the ratings.

Eurasia has an adequate competitive position, in S&P's view,
mainly stemming from its geographic diversity and leading
positions in Kazakhstan.  With gross premium written (GPW) of
Kazakhstani tenge (KZT) 27.2 billion (about US$180 million) in
2013, or 9.8% of the Kazakh market, Eurasia maintains a diverse
portfolio of direct insurance and inward reinsurance business.
Eurasia has maintained its position as the leading reinsurer in
Kazakhstan with a 48% market share, which S&P expects will
continue in 2014-2015. Despite minor growth of 1% in 2013,
Eurasia managed to further diversify its international book of
business. The company operates in more than 70 countries
worldwide.  Overall premium growth declined in 2013, owing to a
6% decline in the Kazakh business by 6%, compared with 12% growth
in the international portfolio.  In S&P's base case, it expects
that overall premium growth will be about 5% in 2014-2015,
largely owing to growth of the international book of business.

Eurasia's financial risk profile is constrained by the overall
credit quality of its investments, which on average S&P rates at

In S&P's opinion, Eurasia has very strong capital and earnings,
which it anticipates will continue, according to its base case.
This reflects Eurasia's extremely strong risk-based capital
adequacy ratio, slightly offset by the moderate size of its
capital (about US$360 million in 2013) compared with larger
international peers'.  However, this company's total capital is
greater than that of other Kazakh insurers, comprising 43% of the
aggregate capital of all Kazakh insurers.

Eurasia's underwriting performance remains volatile, primarily
owing to the company's expansion outside of Kazakhstan.  Over the
past two years, Eurasia has experienced large losses, hurting the
net combined (loss and expense) ratio, which fell to 99% in 2013
from 107% in 2012.  Taking these results into account, S&P
expects the net combined ratio to be about 90% in 2014-2015.  The
company's net income is likely to reach at least KZT5.3 billion
in 2014.  In addition, the company's results will be also
supported by a positive revaluation of assets due to the
devaluation of Kazakhstani tenge in February 2014.  S&P expects
return on equity and return on revenues to be at least at their
current levels of 9% and 20%, respectively.

In S&P's view, the company's risk position reflects high risk,
considering high foreign exchange risk and investment
concentration in the banking sector.  Although Eurasia has a
strict policy of maintaining adequate asset-liability match,
about 40% of assets are denominated in foreign currency, which
increases market risk.  Credit risks associated with investment
concentration in the banking sector still remain.

"We have revised our assessment of liquidity to strong from
exceptional, considering a recent strengthening of the company's
loss reserves relative to the growth of assets, which led to a
weakening of the liquidity ratio below 200%.  However, in our
view, there is currently no shortfall in liquid assets to pay
claims and operating expenses.  In addition, the ratio of loss
reserves to net premium written is strong at 63.8%, compared with
that of peers.  Eurasia has historically reported positive cash
flow from its insurance operations, and we expect this to
continue," S&P said.

The stable outlook reflects S&P's view that Eurasia will preserve
its adequate competitive position and maintain very strong
capital and earnings over the next two years.


BANQUE INTERNATIONALE: Moody's Ups Pref. Stock Rating to B2(hyp)
Moody's Investors Service has upgraded Banque Internationale a
Luxembourg's (BIL) non-cumulative preferred stock to B2(hyb) from
B3(hyb). It has also maintained a positive outlook on the rating.
This upgrade follows BIL's announcement on April 28, 2014 that it
has restored the nominal amount of these securities.

Ratings Rationale

Moody's upgrade of the EUR225 million perpetual preferred stock
(XS0132253468) to B2(hyb), with a positive outlook, reflects the
fact that the nominal amount of the securities has been restored
and the expectation that the securities will start paying coupons
again from July 2014. The B2(hyb) rating is positioned four
notches below BIL's ba1 standalone credit assessment in
reflection of the notes' non-cumulative nature of coupons and
their loss-absorbing features. BIL's standalone credit assessment
does not incorporate support uplift from its parent, Precision

BIL's 2011 losses caused a EUR33 million principal write-down on
this instrument. BIL subsequently skipped nine quarterly coupons
in 2012, 2013 and 2014. However, with the recovery of its
earnings, and as a pre-requisite to paying dividends to its
shareholders, BIL needed to replenish the instrument's nominal
amount and to pay coupons for two consecutive years, or to redeem
the security at par on a quarterly call date. The bank used its
2012 net profit to replenish 91% of the loss incurred by the
instrument. It also repurchased 53% of the notes through a tender
offer in January 2013. Finally, on April 28, 2014, the bank fully
replenished the notional amount of the outstanding notes. BIL's
2013 net income of EUR113 million allows it to replenish its
statutory reserves and to pay a coupon due in July 2014, thereby
normalizing the status of the notes. As a result, Moody's has
reverted to using its standard notching approach to assign the
B2(hyb) rating on the notes, from the previous expected loss
approach reflecting the loss incurred by the instrument.

The positive outlook on the notes results from the degree of
upward pressure on BIL's standalone credit assessment of D+/ba1,
reflecting the successful transition towards a fully independent

What Could Move The Rating Up/Down

BIL's non-cumulative preferred stock would be upgraded if the
bank's standalone credit assessment was revised upwards.
Conversely, the notes would be downgraded if the standalone
credit assessment was revised downwards.

A downgrade of BIL's non-cumulative preferred stock would also
likely occur if its coupons were not paid or if the bank was to
relapse into a net loss that is sufficiently large to impact the
notional amount of the securities.

Principal Methodology

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

BANQUE INTERNATIONALE: S&P Raises Rating on EUR225MM Notes to BB-
Standard & Poor's Ratings Services said that it has raised its
rating on Banque Internationale a Luxembourg's (BIL's)
EUR225 million hybrid Tier 1 note to 'BB-' from 'D'.

The upgrade reflects the bank's announcement at the end of April
2014 that the nominal was fully reconstituted.

The bank has missed quarterly coupon payments on the notes since
April 10, 2012.  BIL suspended coupons because the loss posted by
the bank in 2011 made the coupon payment discretionary under the
term of the instrument, and because this instrument fell within
the scope of temporary restrictions on discretionary coupon
payments, as part of the agreement for state aid with the
European Commission.  Under S&P's criteria, even if the terms of
BIL's noncumulative instrument allow for nonpayment of interest,
the occurrence of a coupon suspension is a breach of the terms of
the promise that S&P imputes to rate the instrument, which is to
pay cash on the originally scheduled due date.  Following the
announcement of the 2013 results, the bank communicated that the
nominal was fully reconstituted.  Following the reconstitution of
the nominal, S&P expects the bank to resume regular quarterly
coupon payments, starting July 2014.

In accordance with S&P's criteria for hybrid capital instruments,
the 'BB-' rating reflects its analysis of the instrument and
S&P's assessment of BIL's stand-alone credit profile (SACP) of

The 'BB-' issue rating stands four notches below BIL's SACP,

   -- A deduction of two notches, which is the minimum downward
      notching from the SACP under S&P's criteria for a bank
      hybrid capital instrument.

   -- A deduction of an additional notch to reflect that the
      instrument mandatorily absorbs losses on a going concern

   -- A deduction of an additional notch to reflect the fact that
      the instrument contains a nonviability contingency clause
      leading to principal write-down.


BIOSEV FINANCE: Fitch Withdraws 'BB-' Rating on US$500MM Notes
Fitch Ratings has withdrawn the expected rating of 'BB-' assigned
to Biosev Finance International B.V.'s USD500 million 2020
proposed senior unsecured notes issuance.  Biosev Financial is a
fully owned subsidiary of Biosev S.A. (Biosev).  The note would
be fully guaranteed by Biosev and its subsidiaries.

The withdrawal of the rating follows unfavorable market
conditions to sell the notes.  As there is no set time frame for
resuming the issuance process, no rating is required at this
time.  Fitch will provide investors with further information on
the notes if and when the issuer resumes the sale process.

Fitch continues to rate Biosev as follows:

   -- Foreign and local currency Issuer Default Ratings 'BB-';
   -- National scale long-term rating 'A+(bra)'.

The Rating Outlook is Stable.

STORM 2014-II: Fitch Assigns 'BB(EXP)' Ratings to 2 Note Classes
Fitch Ratings has assigned Storm 2014-II B.V.'s EUR752.2m notes
expected ratings, as follows:

  EUR150m Class A1 floating-rate notes: 'AAA(EXP)sf'; Outlook

  EUR550m Class A2 floating-rate notes: 'AAA(EXP)sf'; Outlook

  EUR17.1m Class B floating-rate notes: 'AA(EXP)sf'; Outlook

  EUR13.1m Class C floating-rate notes: 'A-(EXP)sf'; Outlook

  EUR14.5m Class D floating-rate notes: 'BB(EXP)sf'; Outlook

  EUR7.5m Class E floating-rate notes: 'BB(EXP)sf'; Outlook

The RMBS notes are backed by Dutch prime mortgages originated by
Obvion N.V..

The final ratings are contingent on the receipt of final
documents conforming to information already reviewed.


Concentrated Counterparty Exposure

This transaction relies strongly on the creditworthiness of
Rabobank, whose role in the transaction ranges from collection
account provider, issuer account provider, cash advance facility
provider to commingling guarantor.  In addition, it acts as back-
up swap counterparty.

NHG Loans

The portfolio comprises 32.6% of loans that benefit from the
national mortgage guarantee scheme (Nationale Hypotheek Garantie
or NHG).  No reduction in foreclosure frequency for the NHG loans
was applied since historical data provided did not show a clear
pattern of lower defaults for NHG loans.  Fitch was also provided
with data on historical claims, which enabled the agency to
determine a compliance ratio assumption.  Fitch also reviewed the
transaction without giving any credit to the NHG loans and found
the ratings on the class A notes to be identical.

Standard Portfolio Characteristics

The portfolio is 50 months seasoned and consists of prime
residential mortgage loans, with a weighted average (WA) original
loan-to-market-value (OLTMV) of 89.1% and a WA debt-to-income
ratio (DTI) of 29.7%, both of which are typical for Fitch-rated
Dutch RMBS transactions.  The purchase of further advances into
the pool is allowed after closing, subject to certain conditions.

Robust Performance

Past performance of transactions in the STORM series as well as
data received on Obvion's loan book indicate robust historical
performance in terms of low arrears and small losses.  Loans that
are 90+ days in arrears on Obvion's mortgage book increased to
0.8% at end-March 2014 from 0.3% at end-September 2011.  While
high relative to historical levels, arrears remain low in
absolute terms.


Material increases in the frequency of defaults and loss severity
on defaulted receivables could produce loss levels higher than
Fitch's expectations, which in turn may result in rating actions
on the notes.  Stressing Fitch 'AAAsf' assumptions by 30% for
both weighted average foreclosure frequency and recovery rate
could result in a downgrade of the class A notes to 'A(EXP)sf'.

For its ratings analysis, Fitch received a data template with all
fields fully completed.

Fitch reviewed the results of an agreed-upon procedures report
(AUP) conducted on the portfolio.  The AUP contained no material
errors that would affect Fitch's ratings analysis.

To analyze credit enhancement levels, Fitch evaluated the
collateral using its default model, details of which can be found
in the reports entitled 'EMEA Residential Mortgage Loss
Criteria', dated June 6, 2013, 'EMEA RMBS Criteria Addendum -
Netherlands', dated June 13, 2013.  The agency assessed the
transaction cash flows using default and loss severity
assumptions under various structural stresses including
prepayment speeds and interest rate scenarios.  The cash flow
tests showed that each class of notes could withstand loan losses
at a level corresponding to the related stress scenario without
incurring any principal loss or interest shortfall and can retire
principal by the legal final maturity.


INR MANAGEMENT: BCR Buys Silver Mountain Project For EUR50-Mil.
Andrei Chirileasa at reports that Banca
Comerciala Romana recently bought the Silver Mountain real estate
project in Poiana Brasov mountain resort for a total of EUR49.7
million, according to insolvency firm Euro Insol, which organized
the sale.

The Silver Mountain project is the main asset of INR Management
Real Estate SRL, a firm that went insolvent in August 2013 and
then was declared bankrupt in January 2014, the report says. BCR
is the firm's largest creditor with some EUR86 million in claims.
Euro Insol is the legal administrator of the real estate company.

Silver Mountain is a residential project which consists of 171
apartments, 176 parking places, 2 commercial spaces and a
multipurpose building which contains a restaurant, a club and a
spa & fitness centre, discloses. These come
with 206,500 square meters of extra land.

According to the report, the asset was first put up for auction
on May 9, 2014, for a starting price of EUR53.4 million plus VAT,
but no one showed up. The second auction was on May 23 and had a
starting price of EUR40.1 million plus VAT, which is the price
that BCR paid, the report relays.

On the same auction, BCR also bought a piece of land of almost
60,000 square meters with frontage to lake Snagov, for
EUR2.29 million, which also belonged to INR Management Real
Estate SRL, relays.

"This is a new start for Silver Mountain. Only BCR has the force,
determination and interest to give this project a new dimension
and to develop it to its real potential. Together with the retail
sale of the 171 apartments, the bank will also finance through a
special commercial vehicle, the construction of a hotel," the
report quotes Remus Borza, managing partner of Euro Insol, as

As reported in the Troubled Company Reporter-Europe on Aug. 22,
2013, Ziarul Financiar said INR Management Real Estate has
entered insolvency at the request of its main creditor, lender
Banca Comerciala Romana.

INR Management Real Estate is a Romanian real estate firm.  The
company developed the Silver Mountain residential project in the
central county of Brasov.

* ROMANIA: Corporate Insolvency Down 14.3% in First Four Months
Irina Popescu at reports that over 8,880
companies entered insolvency in the first four months in Romania,
down 14.3 percent year-on-year, according to data from the
Romanian Trade Registry's Office.

Most insolvencies were recorded in Bucharest -- 1,566; Bihor
county -- 565; and Prahova county -- 455,

On the other hand, the smallest number of insolvencies was
recorded in Calarasi, Neamt, Salaj and Giurgiu counties, which
also have less companies registered, the report relays. says more than 38,100 registrations of
individuals and companies were recorded at the Trade Registry in
the first four months of the year, down some 10 percent compared
to the same period in 2013 when the number of registrations was
of over 42,700.


ABSOLUT BANK: Fitch Raises Issuer Default Rating to 'B+'
Fitch Ratings has upgraded Absolut Bank's Long-term Issuer
Default Rating (IDR) to 'B+' from 'B'.  The agency has also
affirmed the Long-Term IDRs of LLC Expobank (EB), Russian
Universal Bank (Rusuniversal) and Spurt-Bank (Spurt) at 'B'.  The
Outlooks on all four banks' IDRs are Stable.


The upgrade of Absolut's IDR to 'B+' from 'B' mainly reflects its
longer track record of sustainable performance after it was
acquired in May 2013 by Non-State Pension Fund Blagosostoyanie
(the Fund), controlled by JSC Russian Railways (RR,
BBB/Negative), and reduced concerns about its recent merger with
sister bank, OJSC KIT Finance Investment Bank (KIT), partly
because the Fund had acquired some impaired assets from KIT's
balance sheet prior to merger.  The upgrade also considers the
Fund's now stronger commitment in assisting the bank in its
development, also reflected in considerable amount of funding
provided to it by the Fund's related parties to replace that of
the former owner KBC Bank (A-/Stable), and broader involvement of
the bank in servicing companies related to the Fund.

At the same time Absolut's Long-term IDRs do not factor in
explicit extraordinary support from the Fund and reflect the
bank's intrinsic creditworthiness (as shown by its Viability
Rating).  This is because there is limited visibility around the
Fund's financial ability to provide support, as well potential
constraints given the bank's complex ownership structure and
evolving legislation of pension funds in Russia.

Absolut's non-performing loans (NPLs, overdue by more than 90
days) were a low 3% of gross loans at end-2013 reflecting the
bank's focus on moderate-risk corporate borrowers and low-risk
residential mortgages.  The impact of KIT's consolidation on loan
quality should be broadly neutral for Absolut given the Fund's
prior acquisition of impaired assets with a net value of RUB6.9
billion from KIT's balance sheet for a consideration of RUB5
billion (RUB1.9 billion impairment loss was recognized by KIT).
However, Absolut still inherited one big RUB8.1 billion (33% of
combined pro-forma equity) non-core real estate asset (a land
plot in St. Petersburg for residential construction), which may
require additional provisioning, as the disposal at this
valuation is likely to be problematic.

The bank's liquidity position is adequate, albeit there is an
increased reliance on funding from the Fund and other related
entities, which accounted for a quarter of customer accounts at
end-2013.  Refinancing risk is substantial with about RUB31
billion (18% of liabilities) of wholesale funding maturing in
2014, including RUB12 billion of bonds with put options.
Mitigating this, the bank's liquid assets are sufficient to cover
all 2014 repayments subject to stability of deposits.

Capitalization was moderate at end-2013 (Fitch Core Capital (FCC)
of 15.5%) and should slightly decline (by about 100bp) as a
result of the merger, as KIT's capitalization was weaker.  Thus,
at end-4M14 the post-merger regulatory capital ratio was 12.5%
compared to 13.8% at end-2013.  Fitch has been informed that the
Fund may provide up to RUB3bn of new equity to support
capitalization and growth, if required, as the bank's internal
capital generation is quite modest (ROAE of only 2% in 2013).


An upgrade of Absolut's ratings would require a considerable
franchise development without compromising asset quality,
substantial profitability improvement, diversification of funding
and reduction of non-core assets.  Greater visibility of the
Fund's financial profile confirming its ability to provide
support coupled with a more explicit commitment to do so could
also result in the upgrade of support-driven ratings and
potentially IDRs.


The affirmation of EB's international ratings reflects the track
record of successfully managed M&A deals, adequate capitalization
and liquidity, and moderately improved, although potentially
vulnerable profitability.  At the same time, the ratings also
take into account the limited franchise, high balance sheet
concentrations and further expected fast growth through M&A
activities, and specifically uncertainty related to the expected
acquisition of a bank in Czech Republic.  The upgrade of the
National Rating reflects Fitch's view that the bank's credit
profile is relatively stronger than that of some other Russian
banks with a 'b' Viability Rating.

EB's shareholders actively pursue the acquisition of
banks/financial companies at significant discounts to book
values. In 2013 EB's balance size increased by 25%, mainly driven
by: (i) acquiring leasing company FB Leasing (RUB2.7 billion of
assets at date of purchase); and (ii) purchasing car loans
portfolios mainly from one other bank.  These deals generated
about RUB1 billion of fair value gains in the bank's IFRS
accounts, which represented 75% of pre-tax profit in 2013 (ROAE
was moderate 14.7%).

EB expects to acquire LBBW Bank Cz (the Czech subsidiary of
German Landesbank) in 2H14. Although there is likely to be some
deleveraging of LBBW prior to the sale, the acquisition of a
relatively big bank (total assets of around EUR1 billion at end-
2013) could negatively impact EB's capitalization and liquidity.
Mitigating this, Fitch understands the shareholder has some free
resources, which may be injected into EB if needed.

Capitalization is currently reasonable.  At end-1Q14, the total
regulatory capital ratio stood at 19.7% potentially allowing EB
to create impairment reserves up to 21% of total loan book (up
from 3% currently) in local GAAP accounts before the capital
ratio falls below the 10% required minimum.  However, Fitch does
not expect reserves to increase significantly because there are
few risky exposures in the corporate book, while retail loans are
secured and for the acquired portfolios there is an additional
recourse to the sellers.

Liquidity is also adequate. Although the depositor base was
highly concentrated (top 20 accounts made up 30% of total
customer accounts at end-2013), liquid assets less upcoming
wholesale debt repayment covered 30% of customer funds at end-


EB's ratings could be upgraded if the bank strengthens its
franchise by properly integrating acquired businesses, decreases
balance sheet concentrations, improves core profitability and
reduces reliance on one-off gains.  Downward pressure may arise
if capitalization and/(or) liquidity deteriorates.


The affirmation of Spurt's ratings reflects its limited franchise
with concentrations on both sides of the balance sheet,
moderately weakened asset quality, some related party lending,
tight capitalization and liquidity, and only modest
profitability.  The ratings also acknowledge its long track
record of operations and good relations with regional

Asset quality was reasonable at end-2013 with NPLs making up 4.4%
of gross loans and additional 3% being restructured.  Reserves
covered only NPLs reflecting solely that the restructured loans
were mostly performing, but their collateral coverage was largely
insufficient.  The corporate book (70% of gross loans) was
concentrated with the top 25 exposures making up 50% of corporate
loans.  The riskier part is construction exposure (about 1.3x
FCC), although Spurt mainly lends to residential construction
and/or companies benefiting from connections with the local
authorities.  The bank's largest exposure (0.3x FCC), to a weakly
performing petrochemical plant related to the shareholder, is
also a potential risk, although the company has recently raised a
significant financing for renovation purposes from
Vnesheconombank, which may ultimately improve its performance.
The retail lending (30% of loans, of which 40% were unsecured) is
moderately below the break-even.

Capitalization is rather tight with a regulatory ratio of 11.4%
at end-1Q14 suggesting a limited buffer to absorb losses.
Profitability is modest (ROE of 4.1% in 2013), being burdened by
impairment reserves resulting from retail portfolio seasoning.
Spurt's liquidity was also tight with liquid assets net of
moderate near-term wholesale repayments covering a moderate 16%
of customer accounts.  However, the bank's corporate customer
funding (43% of funds at end-2013) was predominantly
relationship-driven mitigating withdrawal risk, to an extent.


Upside potential for the ratings is limited given the limited
franchise and balance sheet concentrations.  The ratings could be
downgraded in case of material erosion of asset quality and
capitalization.  A weakening of the bank's relations with the
regional authorities, resulting in significant deposit outflows
could also result in a downgrade.


The affirmation of Rusuniversal's ratings reflect limited changes
in the credit profile since Fitch last review, including the
bank's narrow franchise and highly-concentrated balance sheet
with a high level of relationship-based business and some
regulatory risk.  At the same time, the bank's ratings take into
account healthy reported asset quality, strong capitalization,
and ample liquidity.

Rusuniversal focuses mainly on defense sector companies with whom
the bank's management/shareholders have long-term relations.
Both loan and deposit books are extremely concentrated.  The top
10 loans made up 83% of gross loans and the top five depositors
77% of customer accounts.  There is also an overlap between some
depositors and borrowers, further underlying franchise
limitations and some regulatory risk.  There is also a risk that
the state may force defense industry companies to transfer
financial flows to state-owned banks, potentially challenging
Rusuniversal's long-term viability.

Franchise and concentration issues aside, the bank's metrics are
strong: zero NPLs, high regulatory capitalization (61.8% at end-
1Q14) sufficient to reserve the entire loan book, good
profitability (ROE of 6.9% in 2013) considering high capital base
and solid liquidity covering all of its customer funding.


Given the franchise limitations, the upside potential for the
ratings is limited.  The bank's ratings could be downgraded if
regulatory pressures significantly impact its business and/or if
the bank's capitalization deteriorates as a result of either
shareholders decision to withdraw a significant amount of capital
or major asset quality deterioration.


EB's and Absolut's senior unsecured debt is rated in line with
the banks' Long-term IDRs, reflecting Fitch's view of average
recovery prospects (corresponding to a Recovery Rating of '4'),
in case of default.  Any changes to the banks' VRs would likely
impact the ratings.


The '5' Support Ratings and 'No Floor' Support Rating Floors of
the banks reflect their small size, limited market shares and
retail deposit franchises, making government support uncertain.
In Fitch's view, support from the banks' private shareholders can
also not be relied upon.  An upgrade of these ratings is unlikely
in the foreseeable future, although acquisition by a stronger
owner could lead to an upgrade of the Support Rating.

The rating actions are as follows:


  Long-term foreign currency IDR: upgraded to 'B+' from 'B';
  Outlook Stable

  Long-term local currency IDR: assigned 'B+'; Outlook Stable

  Short-term IDR: affirmed at 'B'

  National Long-Term Rating upgraded to 'A-(rus)'; Outlook Stable

  Viability Rating upgraded to 'b+' from 'b'

  Support Rating affirmed at '5'

  Support Rating Floor: affirmed at 'No floor'

  Senior unsecured debt: upgraded to 'B+'/'A-(rus) ' from
  'B'/'BBB+(rus) '; Recovery Rating 'RR4'


  Long-Term foreign and local currency IDRs affirmed at 'B';
  Outlook Stable

  Short-Term foreign currency IDR affirmed at 'B'

  Support Rating affirmed at '5'

  Viability Rating affirmed at 'b'

  National Long-Term Rating upgraded to 'BBB(rus)' from BBB-
  Outlook Stable

  Support Rating Floor affirmed at 'No Floor'

  Senior unsecured debt affirmed at 'B'; Recovery Rating 'RR4'

  Senior unsecured debt National Long-term rating upgraded to
  'BBB(rus)' from BBB-(rus)


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

  Short-term IDR affirmed at 'B'

  Viability Rating affirmed at 'b'

  Support Rating affirmed at '5'

  Support Rating Floor affirmed at 'No Floor'

  National Long-term rating affirmed at 'BBB-(rus)'; Outlook


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

  Short-term IDR: affirmed at 'B'

  National Long-term rating: affirmed at 'BBB-(rus)', Outlook

  Viability rating: affirmed at 'b'

  Support Rating: affirmed at '5'

  Support Rating Floor: affirmed at 'NF'


CM BANCAJA 1: Fitch Affirms 'CCsf' Rating on Class E Notes
Fitch Ratings has affirmed CM Bancaja 1, FTA's notes as follows:

   -- EUR1.1m class A (ES0379349006): affirmed at 'AA+sf';
      Outlook Stable

   -- EUR21.9m class B (ES0379349014): affirmed at 'Asf'; Outlook

   -- EUR14m class C (ES0379349022): affirmed at 'BBsf', Outlook

   -- EUR13.2m class D (ES0379349030): affirmed at 'Bsf'; Outlook

   -- EUR13.8m class E (ES0379349048): affirmed at 'CCsf'; RE 0%

CM Bancaja 1, FTA is a cash flow securitization of a static pool
of loans to Spanish SMEs granted by Caja de Ahorros de Valencia
Castellon y Alicante (Bancaja, now part of Bankia S.A., BBB-
/Negative/F3).  The issuer is represented by Titulizacion de
Activos SGFT, SA (the Sociedad Gestora), a securitization fund
management company incorporated under the laws of Spain.


The transaction has significantly deleveraged over the past 12
months, with the class A notes now representing only 0.23% of its
original balance and the portfolio factor (defined as current
portfolio balance/initial portfolio balance) has decreased 3% to
9%.  As the pool has amortized it has become heavily
concentrated. The affirmation of notes is a reflection of the
balance between these two drivers.

Credit enhancement on the class A notes is now 120%, but its
rating of 'AA+sf' is capped at six notches above the sovereign
rating of Spain (BBB+/Stable/F2).

The Negative Outlook on the class D notes reflects the notes'
exposure to underlying obligor concentration and reliance on
future recoveries to pay back noteholders.

Only 50 loans to 47 obligors remain in the portfolio. The largest
obligor accounts for 11% of the transaction and the 10 largest
obligors make up 54% of the transaction.  If one of these
obligors were to default the cost of carry would cause a
significant strain on the transaction.

Current defaults are at 8.2% of the outstanding balance (not
including defaults) compared with 4.9% a year ago.  This increase
is due to a combination of new defaults and smaller outstanding
balance as the loans are being paid down.  Loans that are in
arrears by 90+ days make up 16.3% of the outstanding balance and
by 180+ days 2.5%; both buckets were 1.5% last year.  The large
increase in 90+ delinquencies is a consequence of the
concentrated nature of the portfolio.  Large obligors move in and
out of the delinquency buckets causing volatile performance over
the lifetime of the deal.  The weighted average recovery rate is
48% of the total defaults since closing in September 2005.

Rating Sensitivities

Fitch has run two sensitivities scenario.  In the first the
default probability (PD) was increased by 25% and in the second
the recovery rate was reduced by 25%.  The increase of the PD
resulted in a one-notch downgrade for the D notes.  A reduction
of the recovery rates by 25% resulted in a one-notch downgrade
for the C notes and a two-notch downgrade for the D notes.

U N I T E D   K I N G D O M

CO-OPERATIVE BANK: Names L. Carstensen as Values Committee Chair
James Titcomb at The Telegraph reports that the Co-operative Bank
has attempted to underscore its ethical credentials in the wake
of the Co-operative Group's dwindling ownership of the lender,
appointing a first chairman of its new values committee.

The bank on Tuesday announced that Laura Carstensen, a former
partner at law firm Slaughter and May, had joined the bank's
board and would chair the committee, set after the Co-op Group
lost control of its banking arm last year, The Telegraph relates.

Additionally, the bank has signed up to Co-operatives UK, the
national body for mutuals, in what it said was a commitment to
maintaining its ethical values, The Telegraph discloses.  It had
dropped out of the body's supervision when the Co-op Group ceded
control of the lender last year, The Telegraph notes.

The bank's GBP400 million fundraising will see the Co-op Group's
holding in it slip further from 30% to 20.2%, The Telegraph says.
Below this crucial level, the group's ethics code would no longer
be enshrined in the lender and it would lose the right to appoint
a board member, The Telegraph states.

Shareholders have unanimously supported the capital raise, which
is due to be completed on Friday, The Telegraph relays.

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

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

                           *     *     *

As reported by the Troubled Company Reporter-Europe on April 25,
2014, Moody's Investors Service downgraded by one notch to Caa2
the Co-Operative Bank Plc's senior unsecured debt and deposit
ratings, and maintained the negative outlook on the ratings.  The
bank's standalone bank financial strength rating (BFSR) was
affirmed at E, which is equivalent to a baseline credit
assessment (BCA) of ca.  The BFSR has a stable outlook.

MIKE STACEY: Brought Out of Administration
A gun shop in Somerset has been bought less than a month after
falling into administration, according to Insider Media Limited

Mike Stacey Ltd, trading as construction firm Stacey Construction
and gun shop West Country Guns, collapsed in late April 2014 when
Simon Thomas -- -- and Nicholas O'Reilly
-- -- of insolvency practice Moorfields
Corporate Recovery were appointed administrators, according to
Insider Media Limited.  Both businesses are based at Wiveliscombe
in Somerset.

At the time of their appointment, the report discloses that
administrators reported that the construction company had ceased
trading but added that they were continuing to operate the gun
business while a buyer was sought.

The business and assets of West Country Guns were acquired on
Friday, May 9, 2014 by Shaun Stacey, who will trade under the
name West Country Guns.

"We are pleased that a substantial sum has been recovered for
creditors from our decision to market the business as a going
concern.  We are grateful to all the parties that submitted
offers and wish the new company success in their ongoing
trading," the report quoted Mr. O'Reilly as saying.

NOTTINGHAMSHIRE RECYCLING: Goes Into Administration, Cuts 29 Jobs
----------------------------------------------------------------- reports that Nottinghamshire Recycling Ltd has
gone into administration while a buyer is sought for the
company's assets.

Eddie Williams and Rob Hunt of PricewaterhouseCoopers were
appointed as joint administrators to Nottinghamshire Recycling on
May 7.  About 21 of the stricken waste company's 29 staff were
made redundant across its two sites in Worksop and Kiveton,
according to

The report notes that the business has a turnover of around GBP4
million but it had its waste management permit suspended
following a large fire at the Worksop plant in February, leading
to a period of "financial difficulties."  This followed another
serious blaze that broke out in the summer of 2013, the report

Nottinghamshire Recycling's directors asked funders to place the
company in administration and appoint fixed charge receivers over
the properties to preserve the value of its facilities, the
report relates.  Administrators are now holding talks to try and
secure a sale of the business or its assets, the report relays.

"The operations are well located with a strong and supportive
customer and supplier base but regrettably the current position
of the company is such that we have had to make the immediate
decision to mothball the operations at both sites which has
resulted in 21 redundancies," the report quoted Mr. Williams,
joint administrator and director at PwC, as saying.

"Our immediate priority is to work alongside the remaining
employees and assess the options available that could preserve
and protect the company's assets which will involve discussions
with a number of key stakeholders and interested parties," Mr.
Williams said, the report adds.

PENTAGON PROTECTION: Facing Insolvency This Week
Steve McGrath at Alliance News reports that Pentagon Protection
PLC said on May 23 that Cantor Fitzgerald Europe had resigned as
the entity's nominated adviser and Allenby Capital resigned as
its broker, and it is now facing insolvency within this week if
it can't find short-term financing or a buyer for the company.

According to the report, the window film producer has run into
financial difficulties after trading at its businesses
deteriorated, leaving it short of cash.  Alliance News relates
that the company's shares were suspended earlier this month at
the request of the company, after it said talks were progressing
with several parties about providing short-term financing to
alleviate constraints on its working capital, negotiations that
could lead to the sale of the SDS Group security subsidiary.

It said on May 22 that it reached a deal to sell all of its
security division to the company's former chairman and current
shareholder in return for reducing outstanding loans by
GBP190,000, but also warned that it still was likely to need to
appoint administrators if it couldn't secure additional short-
term financing, the report relates.

Last month, Alliance News recalls, the company had warned that
although it had a "relatively health sales pipeline" in each of
its divisions, the timing of contract milestones and the
conversion of new contracts had led to a deterioration in its

"Without sufficient additional short-term financing being
obtained, or an acceptable offer being received, the board will
likely seek to issue a proposal for a company voluntary
arrangement within the next 6 business days," the company said in
its statement on May 23, the report relays.

A company voluntary arrangement is a procedure by which an
insolvent company can pay off creditors over a fixed period, as
long as those creditors approve the process. It is intended to
assist in the rescue of a company in financial difficulties,
Alliance News notes.

Under AIM rules, a listed company needs to have a nominated
adviser. If Pentagon Protection doesn't appoint a new one within
a month, the London Stock Exchange will cancel its listing, the
company, as cited by Alliance News, said.

Its shares are currently suspended, the report adds.

London-based Pentagon Protection Plc (LON:PPR) -- is engaged in the supply and
application of solar control, safety and security films to
commercial buildings, as well as that of a holding company. The
Company focuses on installing residential and commercial window
film throughout the United Kingdom and worldwide. Its products
include bomb blast window film, solar control window film,
privacy window film and decorative window film. The Company is a
parent company of SDS Group Limited and International Glass
Solutions LLC.

SOLUS GARDEN: Goes Into Administration
Sarah Cosgrove at Hortweek News reports that Rob Hunt -- -- and Tony Barrell of PricewaterhouseCoopers
were appointed joint administrators of Solus Garden & Leisure
Limited after attempts to find investment to support a turnaround
plan failed.

PwC said that "considerable interest" was shown in the business
but no offers to provide a solvent outcome were forthcoming,
according to Hortweek News.

The report notes that Solus company directors chose to put the
company into administration.

The Halesowen, Worcestershire-based wholesale supplier of garden
and leisure products had a turnover of GBP29.3 million in the six
months to March 30, 2014 and employs around 250 people across its
locations, the report relates.

The report notes that Joint administrator and director at PwC
Tony Barrell said: "Our immediate priority is to engage with
employees, key customers and suppliers with the aim of continuing
to trade, which we believe is achievable.  We are pleased to
confirm that employees will be paid for work done prior to our
appointment and while they continue to work.

"We are hopeful of securing a sale and there are already a number
of parties interested in purchasing the business," the report
quoted Mr. Barrell as saying.

The report relates that in late 2013, in the face of difficult
trading conditions, the company sought additional investment to
support a turnaround.

Speaking at the end of last month, a Solus representative said
that negotiations with buyers were progressing, the report adds.


AMIRBANK: S&P Withdraws Suspended 'CCC/C' Corp. Credit Ratings
Standard & Poor's Ratings Services said that it had withdrawn its
long- and short-term corporate credit ratings on Uzbekistan-based
Amirbank, which S&P had previously suspended.

S&P has withdrawn the ratings because it has not received
sufficient and reliable information to continue surveillance and
reinstate the ratings.  S&P suspended the ratings on Amirbank
Bank on April 9, 2014, due to the lack of satisfactory and timely

When S&P suspended them, the ratings on Amirbank were 'CCC/C',
and the outlook was stable.


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  Go to order any title today.


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

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

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

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

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

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

                 * * * End of Transmission * * *