TCREUR_Public/140730.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Wednesday, July 30, 2014, Vol. 15, No. 149



BANK OF CYPRUS: Raises EUR1 Billion in Share Sale


DOMUSVI: Moody's Assigns 'B2' Corporate Family Rating to Parent
DOMUSVI: S&P Assigns Preliminary 'B' CCR; Outlook Stable


AWAS AVIATION: S&P Affirms 'BB+' Corporate Credit Rating
CORDATUS LOAN II: S&P Affirms 'B+' Ratings on 2 Note Classes
NASH POINT: S&P Lowers Rating on Class E Notes From 'BB+'


BANCO POPOLARE SOCIETA: S&P Affirms 'BB-/B' Counterparty Ratings


IDEAL STANDARD: Moody's Assigns 'Ca' Rating to Series B Notes
MALLINCKRODT INT'L: Moody's Rates New US$900MM Unsec. Notes 'B1'
MALLINCKRODT INT'L: S&P Assigns 'BB-' Rating to $900MM Sr. Notes
RIOFORTE INVESTMENTS: Court Accepts Creditor Protection Request


EBN FINANCE: S&P Assigns 'B-' Rating to Loan Participation Notes


GEO-SERVICES ASA: S&P Alters Outlook to Neg. & Affirms 'BB' CCR


EMPIK MEDIA: Moody's Assigns '(P)B3' Corporate Family Rating
EMPIK MEDIA: S&P Assigns Preliminary 'B' CCR; Outlook Stable
LOT POLISH: Must Step Up Search for Strategic Investor


PORTUGAL: Moody's Raises Government Bond Rating to 'Ba1'


MEGAFON OAO: Fitch Affirms 'BB+' Long-Term Issuer Default Rating


SERBIA: Calls Lawmakers to Adopt Asset Sale & Bankruptcy Laws

U N I T E D   K I N G D O M

CONCORD HOLDINGS: Administrators Seek Buyers For Cabling Firm
FLIGHTLEASE AIR 5: August 28 Deadline Set for Proofs of Debt
FYSHE HORTON: Former Clients Have Until Aug. 22 to File Claims
GHERKIN: Savills, Deloitte to Put Tower Up for Sale
IMO CAR WASH: S&P Assigns 'B' Corp. Credit Rating; Outlook Stable

RESIDENTIAL MORTGAGE 21: Moody's Ups Rating on B2a Notes to B2
SALSA CAFE: To be Wound Up Following Closure
TATA STEEL UK: Moody's Puts 'B3' CFR on Review for Upgrade
WAGNER & CO: UK Unit Buys Out German Ownership

* SCOTLAND: Corporate Insolvencies Up 35.9% in Q1 2014



BANK OF CYPRUS: Raises EUR1 Billion in Share Sale
Martin Arnold and Kerin Hope at The Financial Times report that
Bank of Cyprus has raised EUR1 billion by selling shares to
investors including Wilbur Ross, the US private equity
specialist, and the European Bank for Reconstruction and
Development only a year after it was saved from collapse by an
international rescue deal.

The deal is designed to shore up Bank of Cyprus's capital ratios
ahead of this year's European asset quality review and stress
tests, which have already prompted eurozone lenders to raise more
than EUR45 billion, the FT says, citing analysts at Morgan

According to the FT, a person close to the deal said Mr. Ross was
leading a group that had agreed to invest EUR400 million in
Cyprus's biggest bank via a private placement, and the EBRD had
committed another EUR100 million.

Existing investors in the bank, many of whom are Russian
depositors who were forced to convert a big chunk of their
savings into shares in last year's rescue, are being offered
EUR200 million of shares in a subsequent open offer, the FT

The deal is subject to approval by shareholders at an
extraordinary general meeting on August 28, the FT notes.  Some
investors are upset that they will be diluted and that the new
shares are being sold at EUR0.24 each, a big discount to book
value and to the EUR1 price at which they were bailed in during
last year's rescue, according to the FT.

If approved, the share sale would bolster Bank of Cyprus's common
equity tier one ratio -- a key measure of financial strength --
from 10.6 to 15.6%, one of the highest in the sector, the FT

Shares in Bank of Cyprus have been suspended on the Athens and
Nicosia stock exchanges since last year, the FT recounts.  But
the bank, as cited by the FT, said on Monday it aimed to restart
trading in its shares by the end of the year and would then offer
EUR100 million of equity to retail investors.

Bank of Cyprus is a major Cypriot financial institution.  In
terms of market capitalization of 350 million in March 2013, it
is the country's biggest bank.  As of September 2012, the bank
held a 26.7% share of the Cypriot deposit market and a 22.5%
share of the Cypriot loan market, making it the largest bank in
Cyprus.  The Bank of Cyprus Group employs 11,326 staff worldwide.

                         *     *     *

As reported by the Troubled Company Reporter-Europe on July 8,
2014, Fitch Ratings upgraded Bank of Cyprus Public Company Ltd.'s
(BoC) Long-term Issuer Default Ratings (IDR) to 'CC' from 'RD'
and Hellenic Bank Public Company Limited's (HB) Long-term IDR to
'CCC' from 'RD'.  Fitch has also upgraded the two banks' Short-
term IDR to 'C' from 'RD'.  At the same time, the agency affirmed
BoC's Viability Rating (VR) at 'cc' and HB's VR at 'ccc'.  Fitch
said the upgrades of BoC's and HB's IDRs follow the lifting of
legal restrictions imposed by the Central Bank of Cyprus on the
free movement of capital within Cyprus on May 30, 2014.  In
particular, capital controls on bank deposits within the country
no longer apply.


DOMUSVI: Moody's Assigns 'B2' Corporate Family Rating to Parent
Moody's Investors Service has assigned a corporate family rating
(CFR) of B2 and a probability of default rating (PDR) of B2-PD to
HomeVi S.a.S., parent company of DomusVi Dolcea Participations
S.A.S. (DVDP or DomusVi or the company). Concurrently, Moody's
has assigned a provisional (P)B3 rating to the EUR355 million
senior secured notes due 2021 to be issued by HomeVi S.a.S. The
outlook on the ratings is stable.

The proceeds from the notes, together with equity (in the form of
ordinary shares and subordinated convertible bonds), will be used
to finance the acquisition of DomusVi by the equity investors
including PAI Partners, to repay existing debt and to pay fees
and expenses. The capital structure also includes a EUR60 million
super senior revolving credit facility (RCF), expected to be
undrawn at close.

Moody's issues provisional ratings in advance of the final sale
of securities and these reflect the rating agency's credit
opinion regarding the transaction only. Upon a conclusive review
of the final documentation, Moody's will endeavor to assign
definitive ratings to the instruments mentioned above. A
definitive rating may differ from a provisional rating.

Ratings Rationale

The B2 CFR assigned to HomeVi reflects (1) the high financial
leverage with limited deleveraging prospects given Moody's
expectations for modest organic growth; (2) the company's
exposure to a highly regulated sector, with respect to fee rates
for existing residents, reimbursement levels for medical care or
dependency and authorization requirements, also in the context of
the public budget constraints; (3) the sensitivity to the
economic environment and ultimately to household disposable
income as the majority of the company's services are paid by
private individuals; and (4) the high operating leverage driven
by a primarily fixed cost base structure mainly including
personnel and rental expenses.

Conversely, HomeVi 's CFR of B2 is supported by (1) its market
leading position in the fragmented French nursing home sector
(number three private operator nationwide by number of facilities
and beds) with strong presence in affluent areas (e.g., Greater
Paris, Bordeaux-Toulouse, Greater Lyon and the French Riviera)
with strong demographic needs, long-standing sector expertise,
and no significant concentration of revenues across its
facilities; (2) the solid growth achieved over the period 2011-13
particularly in its mature medical homes estate; and (3) the
attractive features of the French nursing home sector
characterized by positive demand trends driven by socio-
demographic dynamics and barriers to entry introduced in 2010 by
a new regulatory framework that has accentuated the mismatch
between supply and demand as evidenced by the high occupancy
rates across the industry particularly amongst private operators.

The new regulation has benefitted the incumbents by limiting
increases in the overall industry capacity but, at the same time,
it has also constrained the opportunities for "greenfield"
developments. Although an ongoing ageing population and
increasing levels of dependency support long-term volumes, these
conditions also put further pressure on the French government to
find alternative solutions to an issue that already represents a
significant cost burden, which could either represent an
opportunity or a threat for private operators.

Pro-forma for the transaction, DomusVi's debt/EBITDA as adjusted
by Moody's (mainly for operating leases) is about 6.3x. Supported
by favorable demand trends and the trade-off between supply and
demand, Moody's believes that there is a certain degree of
stability in the revenue line. However, organic growth relies
upon the company's ability to continue to improve occupancy rates
and increase daily fee rates given the predominantly high fixed
cost base. In light of slow adjusted EBITDA growth and lack of
debt amortization, Moody's does not expect the company to
materially deleverage over the next months. In addition, it is
very likely that the cash flow and/or the super senior RCF will
be used for acquisition growth as well as for development and
refurbishment in the context of limited potential for
"greenfield" development in forthcoming years, although these
potential development options are not included in the company's
organic growth business plan. Such plans may have a further
negative impact on the company's free cash flow generation and on
its deleveraging profile.

DomusVi's liquidity profile is adequate for its near-term
requirements, with approximately EUR15 million of balance sheet
cash available at closing, the EUR60 million super senior RCF,
expected positive free cash flow and no debt amortization. The
RCF has a net leverage drawstop maintenance covenant, set with
ample headroom (drawn Super Senior RCF Net Debt to EBITDA shall
not exceed 1.4x), which will only be tested on a quarterly basis
when outstandings under the super senior RCF are in excess of 25%
of the total RCF commitment amount.

The B2-PD is line with the CFR reflecting an assumption of a 50%
family loss given default. Both the senior secured notes and the
super-senior RCF benefit from limited security, with the RCF
having prior ranking following enforcement. The (P)B3 rating of
the senior secured notes one notch below the CFR reflects their
structural subordination to all operating company liabilities in
the absence of opco upstream guarantees (consistent with
traditional French financial assistance-driven limitations),
combined with their contractual ranking behind the RCF.
Separately, Moody's notes the presence of EUR45 million payment-
in-kind (PIK) bonds due 2022 outside the restricted group, which
have been excluded from the debt calculations as they are not
guaranteed by HomeVi and do not have creditor claims on the
restricted group.

The stable rating outlook incorporates Moody's expectation that
the company will be able to successfully deliver on its organic
growth business plan; whilst maintaining a solid liquidity
profile. The stable rating outlook does not factor in any
material debt-financed acquisitions, dividends, nor any material
increase in capex.

What Could Change the Rating UP

An upgrade would require a sustained reduction in leverage such
that adjusted debt/EBITDA falls to 5.5x with free cash flow
generation remaining positive, and EBITA/interest expense staying
above 2x.

What Could Change the Rating DOWN

Negative pressure could occur in the event of adjusted
debt/EBITDA increasing on a sustained basis above 6.5x; or
increasing margin pressure resulting in EBITA/interest falling to
1.5x. A weakening of the liquidity profile could also result in a

Principal Methodologies

The principal methodology used in this rating was the Global
Healthcare Service Providers published in December 2011. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Headquartered in France, DomusVi is the third largest private
player in the nursing home operator and elderly care sector in
France. For the year-end December 2013, DomusVi's revenues were
EUR648 million and the company's Moody's-adjusted EBITDA was
EUR170 million.

DOMUSVI: S&P Assigns Preliminary 'B' CCR; Outlook Stable
Standard & Poor's Ratings Services assigned its preliminary 'B'
long-term corporate credit rating to France-based private elderly
care home operator CasaVita (Domus Vi).  The outlook is stable.

At the same time, S&P assigned a preliminary issue rating of 'B+'
and a preliminary recovery rating of '2' to Domus Vi's super
senior revolving credit facility (RCF).

In addition, S&P assigned a preliminary issue rating of 'B' and a
preliminary recovery rating of '4' to Domus Vi's senior secured

The ratings reflect S&P's assessment of Domus Vi's business risk
profile as "fair" and financial risk profile as "highly
leveraged."  From these assessments, S&P derives its anchor of
'b'. Modifiers have a neutral effect on the rating.

S&P's assessment of Domus Vi's business risk profile as "fair"
incorporates its view of the company's "low" country risk -- it
derives all of its revenues from France -- and the health care
services industry's "intermediate" risk.  The latter reflects the
importance of third-party payers, governments being the main

S&P views Domus Vi's competitive position as "fair" under its
criteria.  A key consideration in S&P's assessment is the
company's limited geographical diversification.  Domus Vi's sole
exposure is to France, as the French government reimburses a
significant portion of its revenues.  As Standard & Poor's
expects French GDP to grow by 0.6% in 2014 and 1.4% in 2015, it
is unlikely that the government will reduce its efforts to curb
health care spending.  As such, S&P expects that the regulatory
environment, mainly in relation to approving new care home
openings, is unlikely to change over the medium term.

S&P views the environment in which Domus Vi operates as stable
and providing relatively good visibility, thanks to an aging
population and high barriers to entry.  Furthermore, the
government's well-defined reimbursement regime, mainly via "pass
through" contracts, should continue to provide downside
protection.  In the U.K., by stark contrast, reimbursement fees
and margins are under pressure as the government curbs its
spending.  What's more, the U.K. government does not restrict the
number of new homes being opened, unlike in France.  The French
government also covers the majority of dependence and medical
care costs, reducing the effect of potential changes on Domus
Vi's profitability.

S&P notes that Domus Vi's revenue mix benefits from a large
portion of private revenues.  Private funding mainly covers the
accommodation fee, which is set by each nursing home for new
residents, and allows operators to defend their margins.

S&P expects Domus Vi to grow its revenues at least in line with
the market rate, mainly by increasing its average daily rates for
accommodation and associated services, given that occupancy is
already close to its maximum.

Despite the regulatory constraints on a roll out of new
facilities across the board, Domus Vi has been able to deliver
organic growth and improve its profitability, via cost savings
and increasing fees for accommodation services.  This has been
achievable thanks to high occupancy rates and a relatively quick
turnover of bed utilization supporting capital expenditure.

"Domus Vi operates under a 100% leasehold model.  We view this
type of cost structure negatively because health care services
providers are price-takers, and rents will represent additional
fixed costs, which are already high once staff costs are taken
into account.  In our view, this could open a profitability gap
because we consider that the industry offers low growth
prospects, assuming flat-to-slightly increasing volumes, but
decreasing tariffs and higher costs, which at least reflect
inflation. However, Domus Vi's lessor base is fragmented due to
individual assets ownership, and this should help the company
negotiate future rent levels," S&P said.

S&P considers Domus Vi's financial risk profile to be "highly
leveraged" under its criteria, reflecting S&P's estimate that
Standard & Poor's-adjusted debt to EBITDA will remain above 5x
(5.7x) over the next three years.  S&P's adjustment includes
about EUR355 million of cash-interest-paying financial debt and
about EUR700 million under operating leases, according to S&P's
base-case assumptions.

S&P forecasts that adjusted fixed-charge coverage at Domus Vi is
about 1.3x, as a result of the company's significant annual
rental payments.  Although S&P views the company's fixed-charge
coverage as at the lower end of the category, it anticipates that
the company will be able to comfortably service its debt
obligations, due to the stability and predictability of revenues
and profits. However, given Domus Vi's high proportion of fixed
costs, including rent payments, S&P considers that any structural
operational issues could hinder the company's ability to cover

S&P's base case assumes:

   -- French GDP growth of 0.6% in 2014 and 1.4% in 2015.  S&P
      expects the French government to continue its efforts to
      curb health care expenditure, in accordance with deficit-
      cutting measures.  S&P uses GDP as an indication of the
      state's willingness to pay for health care, given the
      sector's non-discretionary nature.

Company growth at above these rates, but still in the low- single
digits, driven by:

   -- An improvement in occupancy rates at mature medical homes,
      reflecting commercial focused initiatives.

   -- A ramp-up of facilities opened between 2011 and 2013, which
      are expected to reach maturity by 2018.  A focus on pricing
      policy to increase revenues, given that occupancy rates
      have already nearly reached their optimum.

   -- Maintenance capex projected at 2.0%-3.0% of revenues per

   -- No dividends or acquisitions besides the add-on
      acquisition, which will be financed through capex.  Based
      on these assumptions, S&P arrives at the following credit

   -- Adjusted debt to EBITDA of 5.7x on average over the next
      three years.  A fixed-charge coverage ratio of 1.3x on
      average over the next three years.

"The stable outlook reflects our expectation that Domus Vi will
continue to operate in a stable and predictable operating
environment and maintain its track record of adjusting its fees
and successfully rolling-out new services.  By doing so, we
believe that Domus Vi will be able to improve its profitability,
despite the restricted potential for organic volume growth in
France.  The outlook further reflects our view that Domus Vi
should be able to continue covering its capex and maintain an
adjusted fixed-charge coverage ratio of above 1.3x, thereby
enabling it to comfortably cover its interest payments and rent,"
S&P said.

"We could take a negative rating action if the operating and
competitive environment in France deteriorates to levels that
would force us to revise downward our business risk assessment of
the company, primarily as a result of weakening operating
margins. We could also consider a downgrade if Domus Vi is unable
to generate positive free cash flow, or as a result of any
potential liquidity issues and underlying structural operational
issues. Structural issues could include a growing mismatch
between the evolution of reimbursement fees, projected volume
growth, and operating costs, given Domus Vi's high fixed-cost
base," S&P added.

"We consider a positive rating action as unlikely over the next
12 months because we project that Domus Vi's core debt protection
metrics are likely to remain commensurate with a "highly
leveraged" financial risk profile.  This is underpinned by the
company's significant lease adjustment and its plans to further
expand using operating leases. However, we could take a positive
rating action if Domus Vi improves and maintains its fixed-
charge-coverage ratio at above 2.2x," S&P noted.


AWAS AVIATION: S&P Affirms 'BB+' Corporate Credit Rating
Standard & Poor's Ratings Services assigned its 'BBB' issue-level
rating to AWAS Aviation Capital Ltd.'s $350 million secured term
loan due 2021.  The recovery rating is '1', indicating S&P's
expectation that lenders would receive very high recovery (90%-
100%) of principal in the event of a payment default.  The
company will use the proceeds to finance 10 aircraft, including
Boeing B737-800 and Airbus A320 aircraft.

S&P's corporate credit rating on Dublin, Ireland-based aircraft
lessor AWAS reflects its position as a major provider of aircraft
leases, and its diversified fleet and airline customer base.  The
rating also reflects the inherent risks of cyclical demand and
lease rates for aircraft, the company's substantial percentage of
encumbered assets, and its ownership by funds managed by private
equity firm Terra Firma Capital Partners Ltd. and the Canada
Pension Plan Investment Board.

The stable rating outlook reflects S&P's expectation that AWAS
will add incremental debt through 2015 to fund capital spending
for new aircraft deliveries, with increased funds from operations
(FFO) due to higher earnings, cash flow related to the additional
aircraft, and modestly improving lease rates.  As a result, S&P
expects AWAS' credit metrics to remain relatively consistent,
with FFO to debt of about 10% and debt to capital in the mid-70%
area. Privately held AWAS does not release its financial results

S&P could lower rating if AWAS completes a large debt-financed
aircraft portfolio acquisition or debt-financed dividend to its
owners, causing FFO to debt to decline to the mid-single-digit
percent area.  S&P do not foresee an upgrade, given the company's
ownership structure.  S&P typically do not rate transportation
equipment lessors owned by private equity higher than 'BB+' due
to financial policy concerns.


AWAS Aviation Capital Ltd.
Corporate Credit Rating                       BB+/Stable/--

New Ratings

AWAS Aviation Capital Ltd.
US$350 million secured term loan due 2021     BBB

CORDATUS LOAN II: S&P Affirms 'B+' Ratings on 2 Note Classes
Standard & Poor's Ratings Services raised its credit ratings on
Cordatus Loan Fund II PLC's class D, Euro A1, EuroA1 DDN,
SterlingA2, and variable funding notes (VFN).  At the same time,
S&P has affirmed its ratings on the class B, C, E, F1, and F2

The rating actions follow S&P's credit and cash flow analysis of
the transaction using data from the trustee report dated April
30, 2014 and the application of S&P's relevant criteria.

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

The portfolio's credit quality has improved since S&P's Feb. 23,
2012 review.  The proportion of assets rated 'BB-' or higher as a
percentage of the performing portfolio has increased to 22.5%
from 13.8%.  The portfolio has become more diversified, with 94
distinct obligors compared with 52 in S&P's previous review.
These developments have resulted in lower scenario default rates
(SDRs) across all rating levels.  The SDR is the minimum level of
portfolio defaults that S&P expects each CDO tranche to be able
to withstand at each specific rating level using its CDO
Evaluator. However, the portfolio's weighted-average recovery
across all rating levels have decreased, resulting in lower BDRs.

The portfolio contains non-euro-denominated assets, which
comprise 23.3% of the performing portfolio.  The VFN, which were
drawn in euros, U.S. dollars, or British pound sterling to fund
these assets, create a natural hedge.  A euro-denominated option
hedges any foreign exchange mismatches that could result from
defaults in the portfolio or from coverage test failures.  In
S&P's opinion, the downgrade provisions in the option agreement
do not fully comply with its current counterparty criteria.  In
S&P's cash flow analysis, for ratings above the issuer credit
rating (ICR) plus one notch on the options counterparty, S&P
therefore considered scenarios in which the counterparty, The
Royal Bank of Scotland PLC, does not perform, and where, as a
result, the transaction may be exposed to greater currency risk.

Without giving credit to the options counterparty, S&P's analysis
shows that the class Euro A1, EuroA1 DDN, SterlingA2, and VFN are
now able to sustain defaults at higher ratings than previously
assigned.  S&P has therefore raised to 'AA (sf)' from 'AA- (sf)'
its ratings on these classes of notes.

The available credit enhancement for the class D notes is
commensurate with a higher rating than previously assigned.  In
addition, S&P's long-term rating on the option counterparty does
not constrain its rating on these notes because it is not higher
than the rating on the counterparty.  S&P has therefore raised to
'BBB- (sf)' from 'BB+ (sf)' its rating on the class D notes.

S&P has affirmed its ratings on the class B, C, E, F1, and F2
notes because its credit and cash flow results indicate that the
available credit enhancement for these classes of notes is
commensurate with their currently assigned ratings.

The application of the largest obligor test does not constrain
S&P's ratings on any of the notes in this transaction.  The
largest obligor test measures the risk of several of the largest
obligors within the portfolio defaulting simultaneously.  S&P
introduced this supplemental stress test in its 2009 corporate
CDO criteria.

Cordatus Loan Fund II is a cash flow collateralized loan
obligation (CLO) transaction that securitizes loans granted to
primarily speculative-grade corporate firms.  The transaction
closed in July 2007 and CVC Cordatus Group Ltd. manages it.  The
transaction's reinvestment period will end on July 25, 2014.


Class        Rating            Rating
             To                From

Cordatus Loan Fund II PLC
EUR416.25 Million, GBP22.83 Million Secured Floating-Rate Notes
and Subordinated Notes

Ratings Raised

D            BBB- (sf)         BB+ (sf)
Euro A1      AA (sf)           AA- (sf)
EuroA1 DDN   AA (sf)           AA- (sf)
SterlingA2   AA (sf)           AA- (sf)
VFN          AA (sf)           AA- (sf)

Ratings Affirmed

B            A+ (sf)
C            BBB+ (sf)
E            BB- (sf)
F1           B+ (sf)
F2           B+ (sf)

NASH POINT: S&P Lowers Rating on Class E Notes From 'BB+'
Standard & Poor's Ratings Services has raised its credit ratings
on Nash Point CLO's class A, B, C, D, and E notes.

The rating actions follow S&P's credit and cash flow analysis of
the transaction using data from the trustee report dated
April 10, 2014 and the application of its relevant criteria.

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

The class A notes have deleveraged further since S&P's Dec. 21,
2012 review.  The class A notes' notional balance is now
approximately 50% of its initial amount.  This amortization has
increased the available credit enhancement and
overcollateralization ratio tests for all classes of notes.

The portfolio's credit quality has improved as the proportion of
assets rated 'BB-' and above has increased by 13%.  However,
there was only a small decrease in the scenario default rates
(SDRs) at each rating level due to the portfolio's increased
concentration. The SDR is the minimum level of portfolio defaults
that S&P expects each CDO tranche to be able to support at the
specific rating level using its CDO Evaluator.

"We have observed that non-euro-denominated assets comprise 22%
of the aggregate collateral balance.  Asset-specific currency
swaps with various derivatives counterparties hedge the
portfolio's non-euro-denominated assets.  In our opinion, the
derivative documentation does not fully reflect our current
counterparty criteria.  Therefore, in our cash flow analysis, for
rating levels that are one notch above our long-term issuer
credit rating on each of the derivative counterparties, we have
considered scenarios where the relevant counterparty does not
perform and where the transaction may be exposed to greater
currency risk as a result," S&P said.

The results of S&P's cash flow analysis following the application
of its stresses to the derivatives counterparties indicate that
the class A, B, and C notes are now able to sustain defaults at
higher rating levels.  S&P has therefore raised its ratings on
the class A, B, and C notes.

Under S&P's cash flow analysis, the class D and E notes' BDRs
exceed their SDRs at higher rating levels than those currently
assigned.  S&P has therefore raised its ratings on the class D
and E notes.

Nash Point CLO is a cash flow collateralized loan obligation
(CLO) that securitizes primarily leveraged loans granted to
speculative-grade corporate firms.  The transaction closed in
July 2006, the reinvestment period ended in July 2012, and the
portfolio is managed by Sankaty Advisors, LLC.


Nash Point CLO
EUR600 Million Senior Secured Floating-Rate Notes

Class        Rating            Rating
             To                From

Ratings Raised

A            AAA (sf)          AA+ (sf)
B            AAA (sf)          AA- (sf)
C            AA (sf)           A+ (sf)
D            A+ (sf)           BBB+ (sf)
E            BBB+ (sf)         BB+ (sf)


BANCO POPOLARE SOCIETA: S&P Affirms 'BB-/B' Counterparty Ratings
Standard & Poor's Ratings Services affirmed its 'BB-/B'
counterparty credit ratings on Italy-based Banco Popolare Societa
Cooperativa SCRL (Banco Popolare) and its core subsidiary Banca
Aletti & C. SpA.  The outlook is negative.

The affirmation reflects S&P's view that Banco Popolare's
business and financial profiles remain consistent with its
previous expectations.

The ratings reflect S&P's "adequate" assessment of the bank's
business position, as, in S&P's view, Banco Popolare benefits
from its solid nationwide franchise, paired with a deep local
presence in some of Italy's richest regions, and its better
diversification by business than the Italian banking sector

S&P views Banco Popolare's capital and earnings as "weak", given
its still relatively modest capitalization and subdued internal
capital generation, in the context of the downside risk stemming
from its weak asset quality and the prevailing relatively
high-risk economic environment in Italy.  S&P estimates Banco
Popolare's risk-adjusted capital (RAC) ratio is likely to remain
between 4.5%-5.0%, and not sustainably above 5%, through to
year-end 2015.

Despite the positive impact of the EUR1.5 billion capital
increase that the bank successfully concluded in April, S&P's
capital analysis incorporates its view that the bank's
capitalization will likely remain constrained by low earnings
generation, owing to significant credit losses that we anticipate
the bank will likely incur over the next two years.

S&P's assessment of Banco Popolare's risk position is "weak,"
reflecting its view that S&P's industrywide calibrated RAC ratio
for Banco Popolare does not fully capture the bank's
vulnerability to potentially high credit losses stemming from its
large and further increasing stock of nonperforming assets
(NPAs), and its modest coverage through provisions.  As of March
2014, gross NPAs represented 23.6% of the bank's adjusted gross
loans, with a lower than peers' coverage of 28.5% at the same
date, compared with 23% at year-end 2013 and 18.6% at year-end
2012.  Net NPAs (after deducting provisions) amply exceeded the
bank's total adjusted capital (TAC); even taking into account the
capital increase, the ratio between net NPAs and TAC was 186% at
March 2014, a level that is higher than that of peers.  Finally,
S&P assess the bank's funding position as "average" relative to
the Italian banking system due to its mainly retail-oriented
funding structure, and its liquidity position as "adequate"
taking into account that Banco Popolare's liquid assets mostly
cover its exposure to short-term wholesale funding.

As a result, Banco Popolare's stand-alone credit profile (SACP)
is 'b+'.  Banco Popolare's SACP also incorporates the 'bbb-'
anchor that S&P typically incorporates for banks operating mainly
in Italy.

Given the combination of Banco Popolare's SACP and the long-term
sovereign credit rating on Italy, under S&P's criteria the long-
term issuer credit rating includes one notch of uplift from the
SACP to reflect the potential for extraordinary government
support given S&P's view of Banco Popolare's "high" systemic
importance in Italy and the Italian authorities' supportive
stance to its banking system.

The negative outlook reflects the possibility that S&P could
lower its ratings on Banco Popolare by one notch by year-end 2015
if S&P considers that extraordinary government support is less
predictable under the new EU legislative framework.  S&P could
remove the one notch of uplift for potential extraordinary
support, which S&P currently incorporates into the ratings,
shortly before the January 2016 introduction of bail-in powers
under the European Union's Bank Resolution and Recovery Directive
(BRRD) for senior unsecured liabilities.  The BRRD's bail-in
powers indicate to S&P that EU governments will be less willing
to bail out senior unsecured bank creditors, even though it may
take several more years to eliminate concerns about financial
stability and the resolvability of systemically important banks.

In addition to potential changes in the SACP and government
support, S&P will review other relevant rating factors when
taking any rating actions.  These might include any measures
Banco Popolare might take that provide substantial additional
flexibility to absorb losses while a going-concern and mitigate
bail-in risks to senior unsecured creditors.

S&P could revise the outlook to stable if it considers that the
potential downside risks to Banco Popolare's financial profile,
stemming from the high credit risk we see embedded in the large
stock of NPAs, were likely to ease.  This would likely hinge on
S&P's view that the bank's NPA stock was stabilizing.  It would
also likely rest on greater visibility on the degree to which the
Italian economic recovery gathers pace, which could support Banco
Popolare's pre-provision profitability and at the same time
translate into a more supportive environment for Banco Popolare's
asset quality, and whether the bank faces additional provisioning
requirements, particularly in the context of the upcoming
European Banking Authority comprehensive assessment and stress

S&P could also revise the outlook to stable if it considers that
potential extraordinary government support for Banco Popolare's
senior unsecured creditors is unchanged in practice, despite the
introduction of bail-in powers and international efforts to
increase banks' resolvability; and if S&P believes that a large
buffer of subordinated instruments fully offset increased bail-in


IDEAL STANDARD: Moody's Assigns 'Ca' Rating to Series B Notes
Moody's Investors Service has assigned a B3 rating to the Series
AA Notes (15.75% Priority PIK Senior Secured Notes due 2018), a
Caa3 rating to the Series A Notes (15.75% Priority PIK Senior
Secured Notes due 2018) and a Ca rating to the Series B Notes
(15.75% / 11.75% PIK Toggle Senior Subordinated Secured Notes due
2018) issued by Ideal Standard International S.A. ("Ideal
Standard" or "the company"). Moody's has also upgraded the
company's probability of default rating (PDR) to Caa3-PD from Ca-
PD. Ideal Standard's corporate family rating (CFR) remains
unchanged at Ca. Concurrently, the rating agency has withdrawn
the Ca rating of the EUR275 million senior secured notes due 2018
(the "Existing Notes"). The outlook for all ratings is negative.

Ratings Rationale

The rating action follows the company's announcement on June 4,
2014, that it completed a debt restructuring by way of an
exchange offer on the outstanding notes. Moody's considers the
transaction completed on 4 June to be a distressed exchange,
which constitutes a default under Moody's methodology.

The new capital structure includes EUR50 million Series AA Notes
(New Super Senior Financing contributed by those lenders who
chose Series A and C Notes), EUR98.3 million Series A Notes;
EUR100.6 million Series B Notes and EUR65.5 million Series C
Notes. Additionally, approximately EUR11 million out of the
EUR275 million Existing Notes are still outstanding. EUR87.8
million of the Series B Notes have a convertibility feature into
Series C notes and Equity, subject to certain conditions. All of
the notes carry PIK interest, although Series AA and A Notes may
pay cash if the minimum levels of EBITDA required are not
achieved and the Series C Notes may pay interest at the option of
the company and subject to certain restrictions.

The restructuring improves Ideal Standard's liquidity profile by
removing the cash interest burden of approximately EUR32 million
per annum which otherwise would be required to be paid under the
Existing Notes and by providing approximately EUR32 million of
additional liquidity (net available amount of New Super Senior
Financing after the purchase of a 11% stake in Ideal Standard
MENA business and transaction expenses). However the transaction
does not resolve the issue of the still unsustainable debt
structure, given the increased amount of debt outstanding post
closing, accruing at a significant PIK rate. For the year ended
December 31, 2013, the company generated EUR20.3 million in
management adjusted EBITDA (including EUR18.2 million related to
the MENA business) leading to gross leverage of close to 20x pro
forma for the restructuring.

Furthermore, Moody's treats the shareholder funding in the form
of PECs and intercompany loans as debt under its shareholder loan
methodology introduced in 2013. The PECs and intercompany loans
amount to approximately EUR1.6 billion.

Liquidity remains weak, due to weak cash flow generation of the
company (especially post the sale of 40% stake in Ideal Standard
MENA business), and restructuring costs under further
restructuring measures announced by the company in Q4 2013. The
liquidity remains vulnerable to the execution of the
restructuring plan and turnaround of the European operations,
targeting productivity and efficiency measures and cost savings.
Additionally, in Moody's view, Ideal Standard may have difficulty
to achieve the minimum EBITDA level of EUR45 million in 2015
required to avoid incurring 50% cash interest due on Series AA
and A Notes. If this proves to be the case, this will further to
weight on liquidity, although the noteholders may waive the cash
interest requirement. There are no financial maintenance
covenants in place.

The upgrade of the PDR to Caa3-PD from Ca-PD reflects the
expectation that the probability of default remains high,
although with somewhat improved liquidity post the restructuring.
The CFR remains unchanged at Ca incorporating high expected loss
due to a stressed liquidity profile and capital structure.

The ratings on the notes reflect their relative ranking in the
capital structure and expected recovery rates. All notes share
the same security and guarantees and rank behind Revolving Credit
Facilities in an enforcement scenario under the terms of the
intercreditor agreement. Within the notes, the Series AA Notes
rank ahead of the rest of the notes, supporting their B3 rating,
followed by Series A (rated Caa3), Series B (rated Ca), C Notes
(unrated) and Existing Notes (withdrawn). The rating differential
between Series AA, A and B notes reflect different recovery
prospects of the notes in an event of default.

The negative outlook reflects the continued uncertainty over the
company's liquidity position and recovery prospects.

What Could Change the Ratings UP/DOWN

Positive pressure on the ratings is unlikely at this stage, but
could occur in case of operational turnaround leading to a
significant improvement in liquidity. Negative pressure is likely
to occur in case of a delay of the restructuring measures and/or
triggering of the EBITDA trigger cash coupon or any other events
leading to further deterioration in liquidity.

The principal methodology used in this rating was the Global
Consumer Durables published in October 2010.

Headquartered in Luxembourg, Ideal Standard is a manufacturer of
bathroom fixtures, fittings and furniture, including ceramic
fixtures (sinks, toilets), brass fittings (taps), acrylic
fixtures (spa and whirlpool tubs) and furniture (towel racks,
toilet seats). The company operates under the brand names of
Ideal Standard, Armitage Shanks, Jado, Porcher, Vidima and
Ceramica Dolomite. Ideal Standard generated EUR650 million
consolidated sales over the twelve-month period ended December

MALLINCKRODT INT'L: Moody's Rates New US$900MM Unsec. Notes 'B1'
Moody's Investors Service assigned a rating of B1 to the new
senior unsecured notes due 2022 of Mallinckrodt International
Finance S.A. and co-issuer Mallinckrodt CB LLC, both of which are
subsidiaries of Mallinckrodt plc (collectively "Mallinckrodt").
The new unsecured notes are guaranteed by subsidiaries. There are
no changes to Mallinckrodt's existing ratings including the Ba3
Corporate Family Rating, Ba3-PD Probability of Default Rating,
Ba2 senior secured rating and the B2 rating on existing senior
unsecured notes due 2018 and 2023, which do not benefit from
subsidiary guarantees.

The new unsecured notes, together with equity, secured term loan
borrowings, cash on hand, and an accounts receivable program,
will fund Mallinckrodt's previously announced acquisition of
Questcor Pharmaceuticals, Inc. (unrated) for approximately $5.6

Rating assigned to Mallinckrodt International Finance S.A. (co-
borrower Mallinckrodt CB LLC):

  B1 (LGD4) senior unsecured notes of US$900 million due 2022

Ratings Rationale

Mallinckrodt's Ba3 Corporate Family Rating reflects its good
balance between two business segments (Specialty Pharmaceuticals
and Global Medical Imaging) but is constrained by its modest
scale and relatively high debt/EBITDA. Pro forma debt/EBITDA
prior to the acquisition was approximately 5.0 times but should
decline to below 4.5 times given Questcor's high EBITDA, which
exceeded US$500 million for the 12 months ended June 30, 2014.
The Questcor acquisition increases Mallinckrodt's scale, but
creates significant concentration in Questcor's product, H.P.
Acthar Gel ("Acthar"), an injectable product. Acthar will
represent over 20% of Mallinckrodt's revenue and approximately
one-half of EBITDA. While near term growth in Acthar should
remain strong, the product is not currently protected by any
patents, and it is difficult to predict the timing or impact of
any generic risks. In addition, as a low-volume, high-cost
product, Acthar's revenues could be sensitive to changes in
reimbursement policies of private or government payors. Other
risks include reliance on a sole supplier for finished product,
an unresolved Department of Justice investigation into Questcor's
promotional practices for Acthar, and recent attention around
safety issues, including patient deaths.

Mallinckrodt will generate good free cash flow, creating the
potential for rapid deleveraging. Somewhat overshadowing the
deleveraging potential, however, is the potential for the
separation of the Global Medical Imaging business lines as well
as for acquisitions in a rapidly consolidating specialty
pharmaceutical industry.

The Ba2 rating on Mallinckrodt's senior secured credit facilities
reflects guarantees from substantial operating subsidiaries, and
a security package consisting of asset pledges of the co-
borrowers and guarantor subsidiaries, excluding certain principal
property. Mallinckrodt recently upsized the term loan to US$700
million from US$500 million, eliminating the need for a separate
cash flow bridge facility. The B1 rating on the new notes due in
2022 reflects guarantees from subsidiaries that guarantee the
obligations under the senior secured term loan facility, which is
expected to include Questcor and certain of its subsidiaries. The
B2 rating on the existing senior unsecured notes due in 2018 and
2023 reflects structural subordination, as these notes are not
guaranteed by subsidiaries.

The rating outlook is stable, reflecting Moody's expectation that
branded near-term growth in Acthar and Ofirmev will facilitate a
decline in debt/EBITDA to below 4.0 times. Sustaining good
organic growth, a successful launch of Xartemis XR, and
maintenance of debt/EBITDA below 3.0 times could result in a
ratings upgrade. Conversely, debt/EBITDA sustained above 4.0
times could result in a ratings downgrade. This scenario could
arise if Mallinckrodt makes acquisitions before deleveraging, if
it faces unexpected generic competition for key products,
regulatory compliance or reimbursement issues, product
withdrawals, or supply disruptions.

Luxembourg-based Mallinckrodt International Finance SA is a
subsidiary of Dublin, Ireland-based Mallinckrodt plc
(collectively "Mallinckrodt"). Mallinckrodt is a specialty
pharmaceutical and medical imaging company. Revenues for the 12
months ended March 28, 2014 were approximately US$2.2 billion.

The principal methodology used in this rating was the Global
Pharmaceutical Industry published in December 2012. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

MALLINCKRODT INT'L: S&P Assigns 'BB-' Rating to $900MM Sr. Notes
Standard & Poor's Ratings Services assigned its 'BB-' issue-level
rating to the proposed US$900 million of senior unsecured notes
co-issued by Mallinckrodt International Finance S.A. and
Mallinckrodt CB LLC.  Proceeds will be used to partly fund parent
Mallinckrodt plc's purchase of Questcor.  The recovery rating is
'4', reflecting S&P's expectation of average (30% to 50%)
recovery in the event of payment default.

The 'B' issue-level rating and '6' recovery rating on the
US$900 million of existing senior unsecured notes is unchanged.
The existing senior unsecured notes do not have a guarantee from
the domestic subsidiaries, and are effectively subordinated to
the new senior unsecured notes, which is why the new notes have a
higher recovery rating.

The addition of recently acquired Ofirmev (from Cadence
Pharmaceuticals) and the pending acquisition of Acthar (from
Questcor) enhance Mallinckrodt's pipeline, given the potential
for additional on-label indications in the future.  Those
products could also provide Mallinckrodt additional product and
therapeutic diversity over time if growth performance meets S&P's
expectations.  However, a somewhat thin pipeline, the rapid pace
of acquisitions and associated integration risk, coupled with
generic pricing pressures and underperformance in global medical
imaging offset any near-term benefits from those product
additions.  S&P continues to view the company's business risk
profile as "fair".  The debt issuance is within S&P's
expectations and, along with the financing mix that includes
equity and cash, we expect leverage to quickly decline to less
than 5x.  S&P continues to assess financial risk as "aggressive".


Mallinckrodt plc
Corporate Credit Rating                   BB-/Stable/--

New Rating
Mallinckrodt International Finance S.A.
Mallinckrodt CB LLC
US$900 million senior unsecured notes     BB-
   Recovery Rating                         4

RIOFORTE INVESTMENTS: Court Accepts Creditor Protection Request
Joao Lima at Bloomberg News reports that Luxembourg's commercial
court accepted requests from Grupo Espirito Santo's Rioforte
Investments SA and Espirito Santo Financial Group SA to seek
protection from creditors as the companies struggle to make
certain debt repayments.

Anick Wolff was appointed as judge to produce a report on the
commercial situation of the companies, Bloomberg says, citing a
statement posted on Luxembourg's justice Web site.

The court on July 22 said it accepted a request from Espirito
Santo International SA to seek protection from creditors,
Bloomberg relates.

Espirito Santo Financial Group SA, the owner of a 20.1% stake in
Portuguese lender Banco Espirito Santo SA, on July 24 said it was
seeking protection from creditors under Luxembourg law as it's
unable to meet certain debt obligations, Bloomberg relays.

Espirito Santo International fully owns Rioforte, which owns 100%
of Espirito Santo Irmaos SGPS SA.  That company owns 49% of ESFG,
which owns the stake in lender Banco Espirito Santo.

Rioforte Investments is the holding company of the Espirito Santo
Group for its non-financial investments.  The company is present
in Portugal, Spain, Brazil, Paraguay, Angola and Mozambique,
among other countries, through various companies operating in
different economic sectors.


EBN FINANCE: S&P Assigns 'B-' Rating to Loan Participation Notes
Standard & Poor's Ratings Services said that it had assigned a
'B-' issue credit rating to the limited-recourse participation
notes to be issued by The Netherlands-based EBN Finance Company
B.V., a special-purpose entity (SPE) of Ecobank Nigeria Ltd.

The sole purpose of the proposed notes is to finance the purchase
of an unsecured subordinated note to be issued by Ecobank Nigeria
for general banking purposes.  The unsecured subordinated note
will be issued by the bank to the SPE in an amount equal to the
gross proceeds of the proposed notes.  S&P believes that the
SPE's noteholders' are fundamentally exposed to the bank's
willingness and ability to repay its obligation on the
subordinated notes, on time, and the noteholders have no other
security or recourse to the bank in the event of a default.

The rating takes into account the long-term rating on Ecobank
Nigeria and the subordination of the note to be purchased.

The ratings on Ecobank Nigeria reflect S&P's view of the bank's
overall creditworthiness, as shown by S&P's stand-alone credit
profile assessment of 'b+'.  The bank operates in the top tier of
the competitive Nigerian banking sector, benefitting from a large
network of about 500 branches and a large customer base of more
than seven million.  S&P expects these advantages to translate
into a lower cost of funds and increased revenues, both of which
should improve the bank's business stability relative to middle-
market peers'.  S&P also considers the bank's leading position
within the wider Ecobank Group (Ecobank Transnational Inc.; not
rated), accounting for about 40% of the group's assets (US$22.5
billion) and revenues (US$2 billion) at year-end 2013.  As such,
S&P believes that Ecobank Nigeria's franchise benefits from its
ability to access the wider group's balance sheet and expansive
distribution network across 35 countries in Sub-Saharan Africa to
compete for business in Nigeria.

Negative rating factors include the bank's poor average loan loss
experience over the past five years compared with peers', as well
as the potential risk that rapid asset growth or higher dividend
distributions than expected could put negative pressure on the
bank's moderate capitalization levels or asset quality over the
next 12 to 18 months.


EBN Finance Company B.V.
Subordinated Issue[1] Foreign Currency               B-

[1] Dependent Participant(s): Ecobank Nigeria Ltd.


GEO-SERVICES ASA: S&P Alters Outlook to Neg. & Affirms 'BB' CCR
Standard & Poor's Ratings Services revised the outlook on Norway-
based seismic group Petroleum Geo-Services ASA to negative from
stable.  At the same time, S&P affirmed the 'BB' long-term
corporate credit rating on PGS.

The outlook revision reflects S&P's view that PGS's credit
metrics over the 2014-2016 forecast period will be lower than S&P
previously anticipated.  S&P now assumes its funds from
operations (FFO) to debt to be close to 25% in 2014, which S&P
don't consider commensurate with the "significant" financial risk
profile in light of the company's volatile cash flows.  S&P
nevertheless anticipates that this ratio will improve in
2015-2016 because it predicts that oil and gas exploration and
production companies will be less cautious about seismic
investment.  S&P also believes that oil prices will remain
supportive by that time.  S&P therefore assumes that PGS's FFO to
debt will be about 30% on average over 2014-2016.

PGS's "significant" financial risk profile also reflects S&P's
forecast for negative discretionary cash flow and takes into
account S&P's belief that PGS will continue to manage its
financial policies prudently, including limited acquisitions or
share buybacks, and a strong balance sheet.

"We have downwardly revised our base-case forecasts because we
believe PGS faces greater uncertainty over the medium term than
we previously assumed regarding multi-client sales and associated
prefunding, as well as supply-and-demand trends in its key
markets.  We consider the demand for seismic services from oil
and gas exploration and production companies to be weaker than
anticipated because PGS's clients are postponing some investment
decisions and becoming increasingly focused on limiting costs and
improving their cash position.  We see a risk that the pace and
magnitude of the pick-up in demand might be slower than we
previously anticipated," S&P said.

"We therefore now project PGS's EBITDA, as adjusted by Standard &
Poor's, will be about US$550 million in 2014.  We assume that
this will improve to between US$650 million and US$750 million in
2015 driven by new capacity and improved market conditions.  We
note that the management modified its full-year 2014 reported
EBITDA guidance from between US$900 million and $950 million to
US$850 million, which we consider a significant revision," S&P

S&P also believes that PGS faces concentration risk associated
with its multi-client Triton survey in the Gulf of Mexico.  S&P
understands that about 25% of PGS's current capacity is deployed
there.  Furthermore, the company's cash position has deteriorated
markedly due to large negative working capital outflows and
because two-thirds of its planned 2014 capital expenditure
(capex) and about 60% of multi-client investment have already
occurred in the first half of the year.  S&P anticipates that the
company's cash generation will improve in the second part of the
year as a result of reduced capex and increased EBITDA, supported
by sales from the Triton survey and some cost improvements.

S&P assumes capex in the range of US$800 million-US$850 million
in 2014 and US$850 million-US$950 million in 2015, including
capitalized multi-client spending.  S&P continues to believe that
PGS has limited flexibility to reduce capex over the next few
years because it plans to add two new-builds to its fleet by the
end of 2015.

PGS's "weak" business risk profile reflects S&P's view of the
highly cyclical, capital-intensive, and competitive nature of the
seismic industry, notably the volatile marine segment, and PGS's
relative lack of operational diversity.  Key business strengths
include PGS's low-cost, sophisticated, and competitive fleet of
seismic vessels.  It also has a strong position within the
consolidated marine sector and a fair degree of visibility on
2014 revenues despite a decreasing backlog (of US$558 million as
of end-June 2014 compared with US$669 million at year-end 2013).

The negative outlook reflects the limited headroom PGS has at the
current rating and potential negative rating pressure if PGS is
unable to strengthen its credit metrics over the medium term.
S&P currently forecasts that FFO to debt will be about 30% on
average over 2014-2016, and that this ratio could decline to less
than 30% in 2014 and 2015.  The outlook also reflects some
concentration risk in the Gulf of Mexico and potential continued
weak demand.

S&P could downgrade PGS by one notch if there is any deviation to
its base case that translated into a sustainable decline in FFO
to debt to less than 30%.  This could happen if market conditions
do not improve or if the Triton survey does not lead to material

S&P could revise the outlook to stable if PGS's credit metrics
strengthen, leading to FFO to debt comfortably between 30% and
40%.  This could result from improved market conditions.  Other
upside factors would be a commitment to prudent financial
policies, less concentrated operations, more visibility on multi-
client sales, or increased flexibility to defer some of its
sizable capex over the next two years.


EMPIK MEDIA: Moody's Assigns '(P)B3' Corporate Family Rating
Moody's Investors Service has assigned a first-time provisional
(P)B3 corporate family rating (CFR) to Empik Media & Fashion S.A.
Group ("EMF", or "the Issuer"). At the same time, Moody's has
assigned a provisional (P)B2 rating to the proposed senior
secured notes due 2019 to be issued at EM&F Financing AB, a
wholly owned and guaranteed subsidiary of EMF, reflecting its
overall ranking within the debt capital structure. The outlook on
the ratings is stable. This is the first time Moody's has
assigned ratings to EMF.

"The assigned (P)B3 CFR balances Moody's assessment of EMF's
fairly high adjusted leverage, high geographic concentration on
the Polish market and the industry in which it operates against
the company's strong market position and diversification driven
by its three main segments," says Sven Reinke, a Moody's Vice
President-Senior Analyst and lead analyst for EMF. "Editorial and
to a lesser degree toy retailing has been transformed in recent
years driven by digitalization and on-line competition and whilst
this trend offers opportunities for EMF's E-commerce business, it
also presents a challenge to EMF's bricks and mortar operations."

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings reflect the rating agency's
preliminary credit opinion regarding the transaction only. Upon a
conclusive review of the final documentation, Moody's will
endeavor to assign a definitive rating to the notes. A definitive
rating may differ from a provisional rating.

Ratings Rationale

--(P)B3 Corporate Family Rating

The (P)B3 CFR assigned to EMF primarily reflects the company's
fairly high adjusted leverage and the risks inherent in the
industry in which it operates. However, the rating also reflects
that, despite its comparatively small scale, the company has
strong market positions in Poland and its domestic Empik and Smyk
operations have proven to be relatively resilient in recent

With PLN3,037 million in revenues and PLN239 million in EBITDA
reported in 2013, EMF is small compared with the majority of
rated retailers. However, Moody's recognizes its strong market
position in Poland with a total of 307 Empik and Smyk stores in
the country. Both banners enjoy high brand awareness and are
amongst the most recognized retailers in Poland. EMF's business
profile is supported by the main segments, Empik, Smyk,
E-Commerce and Language schools, that provide diversification and
reduce dependency to a specific product segment.

However, Moody's believes that the weak like-for-like sales trend
at Empik over the last few years is partially driven by the
structural decline for some editorial categories due to digital
substitution and online retail competition. In addition, the
German operations of Smyk have been suffering from rising online
competition as well. Besides the strengthening of the non-
editorial offering, Empik continues to open new stores in Poland
and developed a multi-channel strategy over the last few years.
EMF's websites and have leading positions
in the online book- and multimedia market in Poland and profit
from Empik's large store network as stores are popular pick-up

Moody's believes that the like-for-like sales trend at Empik will
remain negative for the foreseeable future and that the Polish
retail market in general could face even stronger online
competition should Inc. (Baa1, Stable) decide to enter
the Polish market. The rating agency believes that the best
mitigation to the growing online competition is EMF's own E-
commerce offering which enjoyed strong growth in recent years but
accounted for only around 8% of consolidated sales of continuing
operations in 2013.

Whilst the toy retailing segment Smyk has a strong track record
of like-for-like sales growth in Poland alongside high single-
digit EBITDA margins, operations in Germany under the Spielemax
banner are underperforming since 2012. The issuer has initiated a
turnaround program focusing on its domestically successful "all
for kids" concept by rolling out a full clothing, shoes and
accessories assortment. In addition, it also launched its website. Moody's notes that the turnaround program
is still in a relatively early stage and that material
improvements in terms of profitability have not yet sustainably

EMF's continuing operations recorded stable performance in 2013
but lower sales and EBITDA during the first four months to April
2014. Reported EBITDA increased from PLN234 million in 2012 to
PLN239 million in 2013. However, Sales during the first four
months to April 2014 reduced by 4.7% from PLN873 million to
PLN832 million largely as a result of the discontinuation of the
Fashion operations and EBITDA generation lowered from PLN28
million to PLN10 million mainly driven by lower sales at Empik
due to high book sales figures in the first four months of 2013
but also lower sales of the music and multimedia categories as
Empik focused on new releases and top-orders and reduced the
product range and backorders.

On a pro forma basis for the financing and last-12-months
reported EBITDA of PLN239 million to December 2013, Moody's
expects EMF's gross adjusted leverage to amount to around 6.9x,
which the rating agency believes is broadly comparable with other
retailers within the rating category.

Moody's considers the company's liquidity to be adequate. Upon
closing of the transaction, Moody's expects that the company will
retain a cash balance of PLN218 million, as well as access to a
revolving credit facility (RCF) of PLN100 million which is
expected to be undrawn at closing. The RCF facility will contain
financial covenants for leverage and interest coverage, for which
Moody's expects strong headroom. The company's revenues are
highly seasonal, with the last quarter of the year generating the
highest sales and cash flow. Since the company has large cash
outflows in the first quarter of the year when suppliers are paid
for the festive season sales, liquidity is the lowest towards the
middle of the year. Whilst Moody's does not expect any drawings
under the RCF, the rating agency's assessment of adequate
liquidity assumes access to the RCF at all times.

-- Provisional (P)B2 Rating On Senior Secured Notes

The provisional (P)B2 (LGD3) rating assigned to the senior
secured notes is one notch above the B3 CFR and reflects the fact
that at closing of the transaction, the shareholder loan (EUR48
million, or PLN200 million) is subordinated to the notes (EUR240
million, or PLN994 million) within the debt capital structure but
also that the RCF (EUR24 million, or PLN100 million) ranks senior
to the notes (EUR240 million, or PLN994 million).

The shareholder loan accrues PIK interest and matures one day
after the RCF and senior secured notes. Under the terms of an
intercreditor agreement, the shareholder loan is subordinated to
the RCF and the senior secured notes and is unsecured. However,
the shareholder loan can be pre-paid from disposal proceeds of
the language school business. The permitted pre-payment is a main
reason for the full debt treatment under Moody's "Debt and Equity
treatment for Hybrid instruments of Speculative-Grade
Nonfinancial Companies" methodology.

According to the facilities agreement, the notes and the RCF will
be secured on pledges of the share capital and bank accounts of
the Issuer and certain subsidiaries of the group. They will
further be guaranteed, on a pari passu basis, by guarantors which
represent about 94% of the group's consolidated EBITDA and 84% of
the group's consolidated gross assets.

Rationale for the Stable Outlook

The stable outlook reflects Moody's expectations that EMF will
gradually improve its operational performance in the next 12-18
months, mostly on the back of a turnaround of its Spielemax
operations although Moody's expect further like-for-like sales
decline at Empik. The stable outlook also assumes that EMF will
keep a disciplined approach regarding capex spending and does not
engage in any shareholder remuneration until it reaches its
target peak net leverage of 3.0x.

What Could Change the Rating Up/Down

Moody's could consider upgrading EMF's rating if the company
continues to successfully execute its strategy such that it
improves its operating profitability and withstands the
competitive pressures that are expected to increase driven by the
growing online market. An upgrade would also require an
improvement in the company's credit metrics such that its
adjusted debt/EBITDA approaches 5.75x. With continuing
operational improvement, positive rating pressure could be
accelerated driven by a successful disposal of the language
school business depending on the magnitude of the disposal
proceeds. However, the removal of the subordinated shareholder
loan with proceeds from the sale of the language school business
could result in the instrument rating for the senior secured
notes to remain at the current B2 level even if the CFR would be
upgraded to B2 as the rating uplift for the notes could be

EMF's rating could be lowered if it suffers from material like-
for-like sales decline and/or if its operating margins
deteriorate, as a result, for example, of a continuing
underperformance of Spielemax or more intense competition. An
aggressive shareholder return policy could also create downward
pressure on the rating. Quantitatively, Moody's could downgrade
the rating if EMF's adjusted debt to EBITDA remains above 6.75x
on a sustainable basis.

Principal Methodologies

The principal methodology used in these ratings was the Global
Retail Industry published in June 2011. Other methodologies used
include Loss Given Default for Speculative-Grade Non-Financial
Companies in the U.S., Canada and EMEA published in June 2009.

Headquartered in Warsaw, Poland, EMF is a leading editorial and
toy retailer operating through two main store formats, Empik and
Smyk. It also operates a large language school network, runs an
growing online retail business and is an established wholesale
distributor of cosmetics and footwear. In 2013, EMF operated a
total of 416 stores and 113 language schools and reported net
sales of approximately PLN2,931 million.

EMPIK MEDIA: S&P Assigns Preliminary 'B' CCR; Outlook Stable
Standard & Poor's Ratings Services assigned its preliminary 'B'
long-term corporate credit rating to Poland-based specialist
retailer for culture, entertainment, and children's products
Empik Media & Fashion S.A.  The outlook is stable.

In addition, S&P assigned its preliminary 'B' issue rating to the
proposed EUR240 million senior secured notes to be issued by EMF
Group's 100% owned subsidiary, EM&F Financing AB.

The preliminary ratings are subject to the successful issuance of
the above notes and the escrow release conditions being met, as
well as S&P's receipt and satisfactory review of all final
documentation.  If Standard & Poor's does not receive the final
documentation within a reasonable time frame, or if the final
documentation departs from the materials we have already
reviewed, S&P reserves the right to withdraw or revise its

The preliminary rating reflects S&P's view of EMF Group's "weak"
business risk profile and "highly leveraged" financial risk
profile, as S&P's criteria define these terms.  S&P combines
these factors to derive an anchor of 'b', based on its view of
the group's credit metrics at the higher end of our "highly
leveraged" category.

EMF Group is a leading specialist retailer for culture,
entertainment, and children's products in Poland, with a strong
presence in selected non-food retail categories in other Central
and Eastern European countries, including Germany, Ukraine, and
Russia.  Recently, the group started a restructuring process to
focus on its core business: Empik (leader in books, movies, and
games retail; accounting for 36% of sales and 50% of EBITDA in
2013), Smyk (toys, infant hardware, and kids apparel and
accessories retailer; 41% of sales and 23% of EBITDA), and
e-commerce (operates the group's online e-commerce websites; 8%
of sales and 9% of EBITDA).  As a result of this restructuring,
the group exited unprofitable business units, like its fashion
business and the operations of the Smyk Group in Turkey and the
Czech Republic.  S&P also understands the group intends to
dispose of its language schools division by 2016.  This unit
accounted for 7% of sales and 13% of EBITDA in 2013.

"Our assessment of EMF Group's business risk profile as "weak"
primarily reflects our view of the group's exposure to the
specialized retail industry -- which we assess as cyclical and
competitive, with limited barriers to entry.  We consider
expenditures on goods that Empik sells to be mainly discretionary
and highly volatile, although we acknowledge the group's ability
to capture recurring sales. At the same time, the group's
business risk profile is constrained by its modest size and
scale, its narrow geographic diversification, with over 70% of
revenues generated in Poland, and negative like-for-like revenue
growth, mostly relating to Empik stores.  In addition, we assess
the group's profitability as "average" and volatile, according to
our criteria," S&P said.

These weaknesses are partially offset by EMF Group's leading
market positions in both core divisions, with a long-standing
presence in Poland.  S&P believes that the group has shown good
ability to secure stores in strategic and high-traffic locations,
because it has negotiated leases with shopping mall operators at
the group level, and due to its position as an anchor tenant and
the negotiation synergies between its companies.  In addition,
the group obtains significant capital expenditure contributions
from its landlords.  Even though supplier concentration exists in
both core divisions, it is partly mitigated by EMF Group's
bargaining power since it is a key client for its suppliers, as
well as its ongoing optimization of its supply chain and
sourcing.  S&P believes that the group's operating performance
may improve post restructuring, with ongoing cost optimization
and a focus on efficiency, which will add some support to the
group's business risk profile.

EMF Group has announced plans to revise its capital structure by
issuing EUR240 million of senior secured notes and Polish zloty
(PLN)200 million (EUR48 million) of subordinated shareholder
loans, provided by its major shareholders Penta Investments Ltd.
and Eastbridge S.A.R.L. It has indicated intentions to use the
funds to refinance about PLN741.6 million (EUR179 million) of
bank debt and certain trade payables, repay PLN257.1 million
(EUR62 million) of bonds, and pay for approximately PLN49.4
million (EUR12 million) of transaction fees.  S&P further
understands that EMF Group intends to sign a PLN100 million
(EUR24 million) super senior revolving credit facility (RCF) and
a pari passu RCF of PLN300 million, with a multicurrency
revolving letter-of-credit facility.  Although S&P considers that
subordinated shareholder loans have certain equity
characteristics, are noncash paying, and subordinated, S&P treats
them as debt-like, according to its criteria.  The shareholder
loans will mature in six years. However, if the disposal of the
language schools business goes through, the proceeds will be used
to repay these loans on a pro rata basis (including any accrued

"We view EMF Group's financial risk profile as "highly
leveraged," although we recognize that some of its adjusted
credit ratios deviate from this assessment.  In particular, we
believe that some lease-adjusted ratios tend to understate EMF
Group's leverage, because its operating-lease commitments
comprise lease contracts with the possibility of early
termination.  This is the case, for example, with our adjusted
ratios of funds from operations (FFO) to debt and debt to EBITDA.
We therefore complement our analysis of the group with other
ratios, such as unadjusted EBITDAR (EBITDA including rent) to
cash interest plus rent coverage (EBITDAR coverage, a ratio that
measures an issuer's lease-related obligations by capturing
actual rents instead of minimum contractual rents), which
reflects a more leveraged financial risk profile for EMF Group.
However, we acknowledge that this ratio may not capture the
group's operating flexibility to terminate rents earlier than
contracted if a particular store is underperforming or another
more attractive location becomes available.  We consequently
expect that EMF Group's Standard & Poor's-adjusted debt to EBITDA
will remain in the range of 4.0x-5.0x (or slightly above 5.0x at
year-end 2014, including all our adjustments except those
relating to operating- lease commitments), but that its EBITDAR
coverage will be about 1.4x, which is commensurate with a "highly
leveraged" category," S&P noted.

In the absence of acquisitions, and assuming a prudent financial
policy on shareholder returns, S&P forecasts EMF Group will
continue to improve its operating performance with free operating
cash flow returning into positive territory, despite investments
to further expand its core business.  Although S&P do not net
cash against gross debt due to EMF Group's "weak" business risk
profile, it expects mildly improved leverage over the next three
years owing to a rise in EBITDA and cash flows.

In S&P's base case, it assumes:

   -- An overall sound economy in Poland, with real GDP growth of
      2.9% in 2014 and 3.5% in 2015, benefitting not only from
      general economic recovery in the eurozone (European
      Economic and Monetary Union), but also from healthy but
      sustainable domestic demand.

   -- Flat revenue growth in fiscal 2014 (ending December 31),
      with still negative like-for-like revenue growth in the
      low-single-digit area at Empik, outweighed by continuing
      positive growth at Smyk.  S&P then anticipates revenue
      growth of about 5% from 2015.

   -- Relatively stable gross margins.

   -- Adjusted EBITDA margin to remain flat in fiscal 2014, with
      improvement thereafter, following ongoing cost optimization
      and focus on efficiency.

   -- An operating-lease commitment that represents S&P's largest
      adjustment to reported debt and that will continue to
      increase in line with business growth.

   -- Still slightly negative free cash flow in 2014, despite
      decreasing capital expenditures (capex) to about PLN90
      million, and then positive free cash flow starting from

   -- Exclusion of the proceeds from the possible disposal of the
      language schools business, since it is currently under
      discussion with potential buyers and the expected disposal
      is beyond S&P's 12-month base-case scenario.

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

   -- A Standard & Poor's-adjusted debt-to-EBITDA ratio close to
      4.2x in 2014, or about 5.1x including S&P's adjustments,
      except for operating-lease commitments.

   -- Adjusted FFO to debt of about 15% over the next two years
      but close to 9% excluding the impact of our operating-lease

   -- EBITDAR coverage of approximately 1.4x over the next two

   -- Adequate liquidity.

The stable outlook reflects S&P's view that, on successful
completion of its refinancing, EMF Group's debt-to-EBITDA ratio
will remain in the 4.0x-5.0x range on a Standard & Poor's-
adjusted basis (and slightly above 5.0x including S&P's
adjustments except those relating to operating-lease
commitments), and the EBITDAR coverage ratio will be about 1.4x.
However, S&P considers that the group will successfully implement
its business plan and restore operations in its core divisions,
with revenue stabilization in Empik stores and operating margin
improvement in Smyk stores.  Post refinancing, we also factor in
S&P's view that the group will maintain Standard & Poor's-
adjusted EBITDA interest coverage of exceeding 3.0x and FFO cash
interest coverage of more than 4.0x (and above 2.0x for each
credit metric excluding S&P's operating-lease adjustment only).

S&P could raise the rating if EMF Group's business operations
grew more strongly than it currently forecasts, on the back of a
successful expansion strategy and improvement of operating
efficiency, and translated into credit ratios falling into the
"aggressive" category.  This would occur if group reported debt
to EBITDA fell below 5.0x, in line with S&P's "aggressive"
category, and the group started generating sustainable free
operating cash flow.  Provided this is the case, S&P could raise
its rating if EMF Group maintained the EBITDAR coverage of above
2.2x, and if management continued its prudent financial policy on
shareholder returns.

S&P could lower its rating if EMF Group adopted a more aggressive
financial policy that weakened its credit metrics.  S&P could
also take a negative rating action if group revenue and EBITDA
generation declined.  This could occur, for example, because of
higher negative like-for-like revenues in Empik stores with
insufficient revenue growth at Smyk stores or a deviation from
planned store openings, resulting in deterioration of the group's
cash generation and interest coverage metrics, putting covenants
under pressure.  Specifically, S&P could lower its rating if
adjusted interest coverage metrics dropped to close to or below
2.0x, EBITDAR coverage fell below 1.2x, or if free operating cash
flow weakened further into markedly negative territory because of
underperforming business or a more aggressive financial policy.

LOT POLISH: Must Step Up Search for Strategic Investor
Maciej Martewicz at Bloomberg News reports that Poland told
national airline LOT to step up its search for a strategic
investor after the European Commission approved PLN804 million
(US$260 million) in state aid for a carrier that's seen previous
rescue plans thwarted.

The European Union's executive arm backed the funding, half of
which was paid out in 2012, after LOT closed routes, cut 35% of
ground staff and added fuel-efficient Boeing Co. 787 planes to
post a first annual profit in five years in 2013, Bloomberg

"LOT has a long and a very difficult restructuring behind it,"
Bloomberg quotes Treasury Minister Wlodzimierz Karpinski as
saying on July 29 in a statement, adding that the revamp will be
completed in October next year.  "We now want LOT to maintain its
position of leading central and eastern Europe carrier, speed up
work on strategy, use its potential -- including 787 Dreamliner
planes -- and actively look for a strategic investor."

Eastern Europe's biggest state-owned airline lost a potential
savior in 2011 when Turk Hava Yollari AO, or Turkish Airlines,
ended talks because of EU rules on outside ownership, Bloomberg

Poland is holding talks with interested parties, Rafal Baniak,
Mr. Karpinski's deputy, said in a TVN24 BiS television interview
this month, while declining to name them, Bloomberg relays.  The
state owns 93% of LOT, with the Treasury controlling 68% and a
regional fund 25%, Bloomberg discloses.  Staff own about 7%,
Bloomberg notes.

LOT's restructuring plan "is based on realistic assumptions and
should enable the company to return to long-term viability within
a reasonable timeframe," the European Commission, as cited by
Bloomberg, said in a statement on July 29.

Polskie Linie Lotnicze LOT S.A., trading as LOT Polish Airlines,
is the flag carrier of Poland. Based in Warsaw, LOT was
established in 1929, making it one of the world's oldest airlines
still in operation.  Using a fleet of 55 aircraft, LOT operates a
complex network to 60 destinations in Europe, the Middle East,
North America, and Asia.  Most of the destinations are served
from its hub, Warsaw Chopin Airport.


PORTUGAL: Moody's Raises Government Bond Rating to 'Ba1'
On July 25, 2014, Moody's Investors Service upgraded Portugal's
government bond rating to Ba1 from Ba2. Moody's expectation that
fiscal consolidation will remain on track despite unfavorable
rulings by Portugal's Constitutional Court, the government's
comfortable liquidity position and the conclusion of Portugal's
three-year EU/IM support program in June, triggered the positive
rating action.

Consequently, the maximum achievable rating for Portuguese
structured finance rated transactions increased to A3(sf) from

Moody's is assessing the impact of Portugal's government bond
rating action and the corresponding increase in the local-
currency country ceiling on all outstanding Portuguese structured
finance rated transactions. For this purpose, Moody's also
considers (i) the performance of the underlying asset portfolios
in line with Moody's collateral assumptions and (ii) the
counterparty risks imbedded in the transactions, including
servicers, account banks and swap counterparties exposures, in
accordance with Moody's methodologies.

Moody's will publish the outcome of its deliberations for
affected transactions in the coming weeks.


MEGAFON OAO: Fitch Affirms 'BB+' Long-Term Issuer Default Rating
Fitch Ratings has affirmed Russia-based OAO MegaFon's Long-term
Issuer Default Rating (IDR) at 'BB+' with a Stable Outlook.

OAO MegaFon's business and financial profile corresponds to mid-
'BBB' rating level on a standalone basis, given the company's
established market positions, strong free cash flow generation
and low leverage. This is notched down two levels for corporate
governance risks generally in Russia and specific to MegaFon, in
particular shareholder influence by Alisher Usmanov, the ultimate
controlling owner.


Strong Market Positions

MegaFon is the secondlargest mobile operator in Russia by
subscriber and revenue. The company has been able to gradually
increase its market share over the last five years. Fitch
believes further gains are likely, although at a slower pace.
Historically, MegaFon has invested more than its peers, resulting
in strong territorial coverage and quality network. Prior years'
capex and its network advantage over peers should continue to
help improving the company's market position.

Russia's Largest LTE Portfolio

MegaFon controls more spectrum than any other operator in Russia,
which guarantees it a high data capacity for years to come.
However, any strategic advantages of having more spectrum over
peers may only be realized in the long-run. The currently
available frequencies intended for LTE remain under-utilized in
Russia due to low LTE device proliferation.

Positive Growth Outlook

Fitch estimates MegaFon's revenue growth will remain positive in
the short term, likely in the low-to-mid single digit territory.
A key growth driver will be data and bundled offers compensating
for mild pressures on voice revenue. Competition is likely to
intensify when a joint venture of Tele2 Russia and Rostelecom
rolls out its operations into new territories, including, most
importantly, in Moscow. However, Fitch believes that significant
pricing pressure is unlikely for quality network operators,
including MegaFon.

Moderate Leverage Sustainable

In Fitch's view, organic development and the current dividend
policy of paying the higher of 50% of net income and 70% of cash
flow may be financed from the company's strong internally
generated cash flow. Pre-dividend free cash flow margin is likely
to remain in the low double-digit territory and leverage within a
targeted range of between 1.2x and 1.5x net debt/EBITDA.

Shareholding a Risk

Fitch does not view corporate governance at Megafon as
significantly above-average. This is reflected in Fitch's
application of the standard two-notch discount for systemic
governance weaknesses in Russia and in its legal environment
under which issuer-specific governance standards operate. While
MegaFon has put in place appropriate board practices and internal
controls Fitch believes key risks relate mainly to the potential
negative influence of MegaFon's majority shareholder, USM
Holdings. The latter company is a non-transparent private holding
company controlled by Alisher Usmanov.

Sound Liquidity and Maturity Profile

MegaFon's maturity profile is long-dated with over 40% of debt,
as of end-1Q14, scheduled for redemption in five years and
longer. The company's RUB63.2bn of cash on the balance sheet at
end-1Q14 and undrawn credit facilities (reported at RUB85.6bn as
of end-2013) comfortably covered its 2014 debt repayments and
Scartel acquisition commitments. The company's exposure to
foreign currency risks is low with 80% of debt denominated in RUB
(including through FX hedges) at end-1Q14.  Fitch expects this
ratio to have significantly improved after the company made an
early USD payment for Scartel in June 2014.


Negative: Future developments that may individually or
collectively lead to negative rating action include

-- A sustained increase in leverage to above 3x funds from
    operations (FFO)-adjusted net leverage (FY13: 2.1x; Fitch
    forecasts it to remain stable in FY14). This, combined with
    liquidity and refinancing risks, may lead to a downgrade.

-- Competitive weaknesses and market share erosion, leading to
    significant deterioration in pre-dividend free cash flow
    (FCF) generation. MegaFon's pre-dividend FCF margin averaged
    19% in 2011-2013, and Fitch expects it to be in the low
    double-digit territory in the medium term.

Positive: Future developments that may individually or
collectively lead to positive rating action include:

  -- Stronger strategic positioning in the Russian market while
     maintaining robust financial performance and cash flow
     generation. This may be demonstrated by a pronounced mobile
     market leadership in spite of a fourth mobile operator entry
     and/or by a capability to offer a wider package of telecom
     services to most of its customer base including wire-line
     broadband services. However, Fitch believes both are remote
     prospects over the medium-term;

  -- A stronger ring-fence around MegaFon, protecting it from
     potential negative shareholder influence.

Full List of Rating Actions

Long-Term Foreign Currency IDR: affirmed at 'BB+', Outlook

Long-Term Local Currency IDR: affirmed at 'BB+', Outlook Stable

Short-Term Foreign Currency IDR: affirmed at 'B'

National Long-Term Rating: affirmed at 'AA(rus)', Outlook Stable

Senior unsecured: affirmed at 'BB+' and 'AA(rus)

Bonds issued by MegaFon Finans LLC and guaranteed by MegaFon:
affirmed at 'BB+' and 'AA(rus)'.


SERBIA: Calls Lawmakers to Adopt Asset Sale & Bankruptcy Laws
Gordana Filipovic at Bloomberg News reports that Serbia's
government asked lawmakers to urgently adopt asset sale and
bankruptcy laws designed to save the budget more than US$800
million a year before deciding on public wage and pension cuts
needed to streamline finances.

According to Bloomberg, Dusan Vujovic, the Economy Minister and
acting Finance Minister, told lawmakers on July 29 that at least
584 companies with 92,000 workers and EUR6.6 billion (US$8.9
billion) in liabilities "cannot move on" without the new laws.

The asset sale law allows for the transfer of ownership to
strategic investors or sale through public tenders or auctions,
Bloomberg discloses.  Mr. Vujovic, as cited by Bloomberg, said
there's also the possibility of debt forgiveness and debt-for-
equity swaps.  The bankruptcy law will accelerate bankruptcy
procedures from an average three to four years and increase the
protection of creditors, who so far have managed to collect an
average 23% to 30% of their claims from insolvent companies,
Bloomberg says.

Adopting the laws will allow the government to resolve many of
the state-owned companies that have failed to find buyers over
the past 15 years and cost US$800 million a year to maintain,
Bloomberg states.  It will help Serbia narrow its deficit, which
is expected to top 8% of economic output this year, Bloomberg
notes.  Serbia, Bloomberg says, needs a leaner gap to qualify for
a new International Monetary Fund loan by October.

According to Bloomberg, the new laws are setting a Dec. 31, 2015
deadline to sell or close all the companies now the Privatization
Agency's portfolio.  In case of zero or negative capital, the
government will be selling company assets, Bloomberg states.

U N I T E D   K I N G D O M

CONCORD HOLDINGS: Administrators Seek Buyers For Cabling Firm
Administrators at Deloitte are looking for a buyer for Concord
Holdings, a 100-year-old cabling business based in Burnley.

Concord Holdings operates Concordia Technologies, which imports
and distributes cabling and accessories, and Heatsense Cables,
which manufactures and supplies pure nickel and high temperature
cables to the food and retail sector.

FLIGHTLEASE AIR 5: August 28 Deadline Set for Proofs of Debt
Stephen J. Akers, Joint Liquidator of Flightlease Air No.5
(Guernsey) Ltd., on July 15 disclosed that a final dividend to
the creditors of the Company is to be declared on September 11,

Any creditor who has not yet lodged a proof of debt is required
to submit details to Stephen J. Akers of Grant Thornton UK LLP,
30 Finsbury Square, London, EC2P 2YU before August 28, 2014.

Failure to lodge a proof of debt by August 28 will render the
creditor ineligible to receive a dividend.

FYSHE HORTON: Former Clients Have Until Aug. 22 to File Claims
All former clients of Fyshe Horton Finney Limited, which was
placed into Special Administration on March 20, 2013, are asked
to contact the Joint Special Administrators of the Company if
they have not already done so in order to lodge their claim by
August 22, 2014.

The Joint Special Administrators have attempted to contact all
clients who held cash balances with the Company at the date of
administration to agree their claims or, where necessary, refer
their claims to the Financial Services Compensation Scheme for
compensation to be paid.  A small number of clients have yet to
return their claim agreement forms.

Please contact the Joint Special Administrators if you are a
former client of the Company and you have not yet received any
correspondence from Harrisons at:

    Fyshe Horton Finney Limited in Special Administration
    Harrisons Business Recovery and Insolvency Limited
    2nd Floor
    33 Blagrave Street
    Reading RG1 1PW
    Tel. No.: (0118)951-0798
    Attn: James Hawksworth

Clients are asked to contact Harrisons by August 22, 2014, to
agree their claims.  Should clients not contact Harrisons by this
date, they may not be able to claim for the cash balance due to
them at March 20, 2013, and may accordingly be unable to receive
compensation or distributions in respect of their claim.

The Joint Special Liquidators to Fyshe Horton, appointed on March
20, 2013, are:

         David Michael Clements and Paul Robert Boyle
         Joint Special Administrators
         Harrisons Business Recovery and Insolvency Limited
         2nd Floor
         33 Blagrave Street
         Reading RG1 1PW
         Tel. No.: (0118)951-0798

GHERKIN: Savills, Deloitte to Put Tower Up for Sale
Patrick Gower at Bloomberg News reports that Savills Plc and
Deloitte LLP were hired to sell London's conical skyscraper known
as the Gherkin three months after the building's lenders
appointed receivers to end years of defaults.

The plan to sell the 180-meter (590-foot) tower at 30 St. Mary
Axe in the City of London financial district was announced by
Savills in a statement on July 29, Bloomberg relates.

A fund managed by IVG Immobilien AG, once Germany's biggest real
estate company, and London-based Evans Randall Ltd. bought the
building from reinsurer Swiss Re Ltd. for GBP600 million (US$1
billion) in 2007, Bloomberg recounts.  Part of the IVG fund's
loan was in Swiss francs, which have gained about 59% against the
pound over the last seven years, increasing the amount owed to
the point that it breached rules on how much debt could be held
against the property, Bloomberg discloses.

"The property will appeal to a wide range of domestic and
international investors and we are confident of maximizing
returns to the receivers and creditors," Bloomberg quotes
Jamie Olley, head of City investment at Deloitte's real estate
unit as saying in the statement.

Savills didn't identify the lenders in its statement, Bloomberg

IMO CAR WASH: S&P Assigns 'B' Corp. Credit Rating; Outlook Stable
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating to U.K.-based car wash company IMO Car
Wash's holding company Rose Holdco Ltd. (IMO).  The outlook is

At the same time, S&P assigned its 'B' long-term issue rating to
Boing Group Financing Plc's proposed EUR240 million (GBP190
million) senior secured notes.  S&P has assigned a recovery
rating of '4' to the notes, indicating its expectation of average
(30%-50%) recovery prospects in the event of a payment default.

The rating on IMO reflects S&P's assessments of the group's
"weak" business risk profile and "highly leveraged" financial
risk profile.  The combination of these assessments leads to an
anchor selection of 'b' or 'b-' under S&P's corporate criteria.
S&P selects an anchor of 'b' for IMO due to its comparatively
stronger cash flow/leverage ratios, based on its view of the
group's cash interest and fixed-charge coverage ratios and
positive free cash flow generation.

S&P's assessment of IMO's business risk profile incorporates its
views of "intermediate" risk for the business and consumer
services industry and "very low" country risk for the group.
IMO's operations are primarily based in very low risk countries
such as Germany and the U.K., which together account for around
two-thirds of the group's revenues, with the remainder coming
from other European countries and Australia.

The assessment of IMO's business risk profile is constrained by
its small scale and narrow scope of operations, limited to
conveyor car wash services.  Furthermore, the group is reliant on
two key markets for almost 80% of its EBITDA; Germany and the
U.K. The most significant factor affecting IMO's business is the
weather, with rainfall and mild winters potentially having an
adverse effect on the group's profitability through lower volumes
and lower-margin wash types.  Ultimately, weather is
unpredictable, and IMO's exposure to weather conditions increases
the volatility of the group's profitability during downturns.
Also, despite occupying a market leading position within the
conveyor category, the overall car wash industry is highly
fragmented; the majority of the market is dominated by petrol
stations in Germany and commercial hand car washes in the U.K.

These weaknesses are partly offset by the high EBITDA margins
that IMO generates, at around 40% on an adjusted basis.  The
company is able to achieve this through its operator model,
whereby it does not bear the costs of staff employed at its
sites.  IMO provides equipment, consumables and chemicals to the
site operators, whom are self-employed and earn a commission for
each wash, augmented for the type of wash.  Site operators are
also able to earn additional income through offering ancillary
services such as car vacuuming or wheel cleaning.  The flexible
nature of the site operators is an additional positive factor, as
they only work when weather conditions are suitable to do so.  In
addition, capital expenditure requirements are typically quite
low, and IMO has maintained adequate ability to flex this in
order to preserve free cash flow generation.

The financial risk profile is underpinned by IMO's financial
sponsor ownership by TDR Capital under the proposed capital
structure.  The transaction would be financed through the issue
of EUR240 million (GBP190 million) of senior secured notes and
injecting GBP100 million of equity.  S&P understands that the
financing structure will also include a GBP20 million revolving
credit facility.  The main part of the equity injection takes the
form of preference shares and shareholder loans.

S&P projects that IMO's Standard & Poor's-adjusted debt-to-EBITDA
ratio will be about 8x over the next 12-18 months, including its
debt-like treatment of the preference shares and shareholder
loans, under our criteria.  Excluding these debt-like
instruments, IMO's financial risk profile would remain in line
with a "highly leveraged" assessment, as S&P's criteria defines
the term, with debt-to-EBITDA of around 6x by Dec. 31, 2015.  S&P
does, however, recognizes the cash-preserving function of these
instruments and forecast that IMO's funds from operations (FFO)
cash interest coverage will exceed 3x.

S&P includes in its calculation of debt about GBP100 million of
operating lease commitments.  S&P anticipates gradually
increasing debt going forward due to the payment-in-kind nature
of the preference shares and the shareholder loan notes, and
S&P's view that IMO's rent obligations are likely to steadily
increase over time.

S&P estimates that IMO will achieve adjusted EBITDA of about
GBP50 million in 2014 and GBP55 million in 2015.  This will cover
annual fixed charges, comprising cash interest payments and
rents, by 1.6x and 1.7x, respectively, which is a level S&P
considers commensurate with the 'B' rating.  S&P also considers
positive free operating cash flow, FFO cash interest coverage of
more than 3x and "adequate" liquidity as commensurate with a 'B'

S&P's base case assumes:

   -- Low-to-mid single digit revenue growth in 2014 and 2015.
   -- Stable operating margins at around 40%-42% in 2014 and
   -- Capital expenditures of GBP15 million-GBP20 million, the
      majority of which is associated with the renovation of
      existing sites and development of new sites.
   -- S&P assumes no dividends are paid.

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

   -- Debt to EBITDA of 7.5x-8x.
   -- FFO cash interest coverage of 3.5x-4.0x.
   -- Fixed charge cover of 1.6x-1.7x.

The stable outlook reflects S&P's view that IMO's market position
in its niche market of conveyor car wash services will enable it
to generate growing revenues and EBITDA over the next 12-18
months.  The outlook also assumes that IMO will maintain stable
operating performance such that free operating cash flow is
positive.  S&P believes that IMO will be able to service its debt
and operating lease obligations and maintain a fixed charge
coverage ratio of 1.6x-1.7x over the coming 12-18 months, a level
that S&P considers commensurate with the rating.  S&P also
considers positive free operating cash flow, a FFO cash interest
coverage ratio of more than 3x, and "adequate" liquidity as
commensurate with a 'B' rating.

Downside scenario

S&P could take a negative rating action if IMO's ability to
service its debt and operating lease obligations weakens, or if
its FFO cash interest coverage ratios or liquidity deteriorates.
S&P could also lower the ratings if IMO is unable to generate
positive free operating cash flows.  The most likely cause of
such deterioration would be the operating performance of the
group coming under significant pressure due to unfavorable
weather conditions constraining revenues, or intensifying
competitive pressure in the car wash industry.

Upside scenario

S&P considers a positive rating action as remote, due to IMO's
highly leveraged balance sheet.  S&P could consider an upgrade if
IMO's adjusted leverage decreases to less than 5x on a
sustainable basis and fixed charge coverage strengthens to
comfortably more than 2x.

RESIDENTIAL MORTGAGE 21: Moody's Ups Rating on B2a Notes to B2
Moody's Investors Service has upgraded all rated classes of notes
issued by Residential Mortgage Securities 21 plc. The increase in
available credit enhancement and improvement in the collateral
performance drove today's rating actions.

Issuer: Residential Mortgage Securities 21 Plc (RMS 21)

GBP150M Class A3a Notes, Upgraded to Aa1 (sf); previously on
Feb 27, 2012 Downgraded to Aa2 (sf)

EUR254M Class A3c Notes, Upgraded to Aa1 (sf); previously on
Feb 27, 2012 Downgraded to Aa2 (sf)

GBP11M Class B1a Notes, Upgraded to Baa1 (sf); previously on
Mar 20, 2008 Confirmed at Baa3 (sf)

EUR23.4M Class B1c Notes, Upgraded to Baa1 (sf); previously on
Mar 20, 2008 Confirmed at Baa3 (sf)

GBP18M Class B2a Notes, Upgraded to B2 (sf); previously on
Feb 27, 2012 Downgraded to B3 (sf)

GBP26.5M Class M1a Notes, Upgraded to Aa1 (sf); previously on
Oct 11, 2005 Definitive Rating Assigned Aa3 (sf)

EUR36.2M Class M1c Notes, Upgraded to Aa1 (sf); previously on
Oct 11, 2005 Definitive Rating Assigned Aa3 (sf)

GBP16.4M Class M2a Notes, Upgraded to Aa2 (sf); previously on
Apr 16, 2014 A3 (sf) Placed Under Review for Possible Upgrade

EUR19.5M Class M2c Notes, Upgraded to Aa2 (sf); previously on
Apr 16, 2014 A3 (sf) Placed Under Review for Possible Upgrade

MERCs Notes, Upgraded to Aa1 (sf); previously on Feb 27, 2012
Downgraded to Aa2 (sf)

Moody's placed on review for upgrade the ratings of class M2a and
M2c notes on April 16, 2014, due to the increase in available
credit enhancement. The rating action concludes this review.

Ratings Rationale

The upgrades reflect (i) better than expected collateral
performance, (ii) increased credit enhancement since the previous
rating action in February 2012 which also partially mitigated the
payment disruption risk for the classes A3 and M1.

Improved collateral performance

Moody's has decreased its expected loss assumption to 5.8% of the
original pool balance, down from 6.2% as of February 2012 due to
better than expected collateral performance. In particular, the
share of loans more than 90 days delinquent as a percentage of
the current pool balance decreased from 31% as of November 2011
(the latest data point available as of the last review) to 23% as
of May 2014. Loss severities has also decreased to 23% as from
28% respectively. Moody's maintained its MILAN CE assumption at
28%. The loss expectation and the MILAN CE are the two key
parameters used by Moody's to calibrate the loss distribution
curve, which is one of the inputs into the residential mortgages
backed securities cash-flow model.

Increased credit enhancement

The sequential amortization of the notes and the non-amortizing
reserve fund led to the increase in available credit enhancement
in the transaction. The notes have been amortizing sequentially
since 2009 following the breach of an arrears performance trigger
set at 22.5% of the current pool balance. The reserve fund is
non-amortizing since 2008 following the breach of the cumulative
losses performance trigger set at 1.25% of the original pool

Partial mitigation of the payment disruption risk

Moody's concluded that the maximum achievable rating in
Residential Mortgage Securities 21 plc has increased from Aa2
(sf) to Aa1 (sf) due to partial mitigation of the payment
disruption risk through increased credit enhancement.

The notes are exposed to payment disruption risk because back-up
servicing arrangements are insufficient to support timely
payments in the event of servicer disruption. Moody's considers
that the payment disruption risk is further exacerbated because
the senior notes are denominated in another currency. Indeed
failure to make timely payments to the swap counterparty in the
short timeframe required could lead to a termination event under
the swap documentation. However increased available credit
enhancement mitigates the severity of possible losses from a
termination event. In particular, the credit enhancement under
the class A3 and M1 notes is 76% and 48% while the maximum loss
from a cross currency swap termination is limited to 17% and 30%,
respectively, which is a share of pari-passu and senior notes
denominated in another currency.

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:

Factors or circumstances that could lead to an upgrade of the
rating include (1) a better than expected performance of the
underlying collateral, (2) improvement in the credit quality of
the transaction counterparties, and (3) further deleveraging of
the capital structure.

Factors or circumstances that could lead to a downgrade of the
rating include (1) a worse than expected performance of the
underlying collateral (2) deterioration in the notes' available
credit enhancement and (3) deterioration in the credit quality of
the transaction counterparties.

SALSA CAFE: To be Wound Up Following Closure
Tom Keighley at The Journal reports that Salsa Cafe, a popular
Newcastle city centre bar and restaurant, has closed its doors
and is to be wound up.

Salsa Cafe on Westgate Road shut its doors without warning on
July 8 and the premises is now empty apart from a few tables and
chairs remaining, the report says.

The Journal notes that the independent restaurant and bar had
operated from the location for some 18 years, and neighbouring
business have been left puzzled by its closure.

A meeting of creditors has now been called by current director
Maureen Trattles, who acquired the business 12 months ago when
the name was changed to Salsa Cafe from Salsa Club, the report

TATA STEEL UK: Moody's Puts 'B3' CFR on Review for Upgrade
Moody's Investors Service, has put Tata Steel Limited ("TSL")'s
corporate family rating of Ba3 and Tata Steel UK Holdings Limited
("TSUKH")'s corporate family rating of B3 on review for upgrade.
The other ratings under review for upgrade are TSUKH's
probability of default rating of B3-PD, and the B3/LGD 3(49%)
rating of TSUKH's term loan facility.

Ratings Rationale

The review for upgrade has been triggered by the issuance of two
bonds by ABJA Investment (unrated), guaranteed by TSL, for a
total consideration of USD1.5 billion and by the rapid progress
made on the refinancing of TSUKH's Senior Facilities Agreement.

"On the back of improving sentiment in Europe and India, Tata
Steel has been able to make swift progress on the refinancing of
its European assets and opportunistically tap global markets to
lock in cheaper funding for the group", says Alan Greene, a
Moody's Vice President - Senior Credit Officer.

The review will focus on assessing the terms and conditions of
the refinancing and its implications for the links between TSUKH
and its parent, as well as the operational profiles of both TSUKH
and Tata Steel India. The review is expected to be concluded
within three months.

TSUKH has improved the cost profile of its plants and generated
five consecutive quarters of positive EBITDA in what remains a
fragile recovery in European demand. While Moody's expects TSUKH
to maintain positive EBITDA in FY2015, with EBITDA per tonne at
USD40/t, and reduce its reliance on the cash support from its
parent, it is unclear how TSUKH can sustainably return to
positive cash flow and pay back debt.

"Tata Steel's Ba3 rating has been held back by TSUKH weak
performance in recent years despite its very profitable assets in
India. With TSUKH on a better footing both operationally, and
financially, the strength of the parent can better benefit the
group", adds Greene, who is the Lead Analyst for Tata Steel.

TSL, on a standalone basis, has consistently been one of the most
profitable steel companies globally. Despite its strength, the
terms of the current TSUKH loan would cause challenges for the
group in September 2015. By pushing the maturity of the TSUKH
debt out by at least five years, the company can focus on
extracting maximum benefits from the improving sentiment in India
following the change of government and the recent budget
announcement. The first sales of steel from Tata's new plant at
Odisha are expected in early FY2016. At full output, phase one
will add 30% more steel to TSL's existing highly profitable and
cash generative Indian operations.

The principal methodology used in these ratings was the Global
Steel Industry Methodology published in October 2012. Other
methodologies used include Loss Given Default for Speculative
Grade Issuers in the US, Canada, and EMEA, published June 2009.

Tata Steel Limited ("Tata Steel") is an integrated steel company
headquartered in Mumbai, India. Following the acquisition of
Corus plc (now Tata Steel UK Holdings, or "TSUKH"), Tata Steel
has operations in 24 countries and is the eleventh largest
steelmaker in the world based on its crude steel output of 25.3
million tonnes in 2013.

Current crude steel production capacity at Jamshedpur, its main
operation in India, is some 9.8 mtpa. In FY2014, Tata Steel India
produced 8.9 million tonnes of steel and sold 8.5 million tonnes,
compared with 7.9 million tonnes and 7.5 million tonnes,
respectively in FY2013. Additional hot metal operations are
located in Singapore and Thailand giving some 2mtpa of crude
steel. In FY2014, TSUKH produced 8.5 million tonnes of crude
steel in the UK and 7.0 million tonnes in the Netherlands.

WAGNER & CO: UK Unit Buys Out German Ownership
John Parnell at PV-Tech reports that the UK subsidiary of
insolvent German distributor Wagner & Co has bought out its
German-held stake and re-launched as an independent entity.

PV-Tech relates that the new firm, Wagner Renewables Ltd, will
retain the same management and will continue supplying the TRIC
mounting system.

"We operated very independently from Wagner & Co in Germany and
started 2014 with an impressive project pipeline with enquiries
growing daily after Minister Barker opened up the medium-scale
rooftop segment," the report quotes Mark Osborne, managing
director, Wagner Renewables, as saying. "For us, this is an
opportunity to strengthen our autonomy and build on the early
growth we have experienced in 2014.

"Wagner Solar UK Ltd occupied a unique position in the Wagner
Group as the only subsidiary not wholly owned. The news in
Germany is unfortunate for our colleagues and for the industry as
a whole. Wagner & Co is one of the pioneering companies in the
German solar sector and has played a big role in shaping the
industry in Germany," Mr. Osborne, as cited by PV-Tech, added.

As reported in the Troubled Company Reporter-Europe on May 2,
2014, said German solar company Wagner & Co.
Solartechnik GmbH filed for insolvency amidst the continuing
crisis gripping the country's beleaguered PV sector.  The solar
installation supplier has suffered continuing losses in
the face of Germany's shrinking market, the report related.

Established in Marburg in 1979 and now based in nearby Coelbe,
Wagner has operated as a system provider of solar installations,
offering holistically sustainable solutions in the areas of solar
power, solar heating and pellet heating systems for homes and
buildings. The company is also active in France, Britain, Italy,
Spain and North America through subsidiaries and partnerships.
Wagner is likewise a leading solar thermal collector manufacturer
in Europe.

* SCOTLAND: Corporate Insolvencies Up 35.9% in Q1 2014
The number of Scottish Registered companies becoming insolvent or
entering receivership rises 35.9% in the first quarter of 2014-15
compared to the same quarter of the previous quarter, Accountant
in Bankruptcy figures show.

Figures released on July 23, 2014, show that more Scots are using
debt payment programmes (DPPs) to help them manage their debts.

Official statistics released by Accountant in Bankruptcy (AiB)
show that the number of DPPs approved under the Scottish
Government Debt Arrangement Scheme (DAS) continues to grow and
has increased by almost a quarter from the previous period.

There was a total of 2,968 personal insolvencies in the first
quarter of 2014-15, a 25.8% decrease from the total recorded in
the same quarter of the previous year. The overall reduction in
personal insolvencies is due to the decline in the number of
Protected Trust Deeds (PTDs) registered and the number of
bankruptcies awarded.  Personal insolvencies, which includes both
bankruptcies and PTDs are at their lowest recorded level since
the first quarter of 2005-06.

There was a 2.5% increase in the number of Scottish Registered
companies becoming insolvent or entering receivership compared to
the previous quarter. This equates to an additional six companies
becoming insolvent or entering receivership.

Minister for Energy, Enterprise and Tourism, Fergus Ewing said:
"It is gratifying to see an increased uptake on the DAS debt
payment programme this quarter.  This highlights that DAS has
opened up a whole new avenue for debtors battling financial
difficulties. The continued reduction in personal insolvencies is
also very welcome.

"A total of GBP8.6 million has been repaid through DAS this
quarter. This figure is particularly encouraging as The Scottish
Government continues to work towards creating 'Scotland's
Financial Health Service', with DAS being one of the first
building blocks towards creating that.

"This demonstrates that Scotland is capable of administering
personal insolvency to ensure that the needs of creditors and
businesses is balanced with the needs of debtors. We can ensure
that those burdened with debt can access the debt relief they
need and those who are able to pay, do so."

Accountant in Bankruptcy received 250 notices of Scottish
registered companies becoming insolvent or entering receivership
in the first quarter of 2014-15. This is a 2.5% increase on the
last quarter and means the total has increased for the second
successive quarter. This total also represents a 35.9% increase
on the same quarter of the previous year.

The total figure consists of 188 compulsory liquidations, and 62
creditors' voluntary liquidations. No receiverships were recoded
this quarter. There were also 118 members' voluntary


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

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

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

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


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

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

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

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

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

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

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