TCREUR_Public/140813.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, August 13, 2014, Vol. 15, No. 159

                            Headlines

A R M E N I A

VTB BANK ARMENIA: Moody's Assigns Ba1 Local Curr. Deposit Rating


A U S T R I A

KOMMUNALKREDIT AUSTRIA: Austria to Sell EUR5.8 Billion in Assets


D E N M A R K

WELLTEC A/S: Moody's Affirms 'B1' Corporate Family Rating


G E R M A N Y

FORCE TWO: Fitch Hikes Rating on Class C Notes to 'BBsf'
ORION ENGINEERED: Moody's Raises Corp. Family Rating to 'B1'


G R E E C E

FRIGOGLASS SAIC: Moody's Lowers Corp. Family Rating to 'B2'


I R E L A N D

CAVENDISH SQUARE: S&P Lowers Rating on Class C Notes to 'BB-'
KOSMOS ENERGY: Fitch Assigns Final 'B' Rating to Notes Due 2021
RMF EURO CDO IV: S&P Lowers Rating on Class V Notes to 'B-(sf)'


I T A L Y

FRANCO TOSI: Offer Deadline Extended to September 30
LUCCHINI SPA: Jindal Acquisition Talks in Final Stages
PHARMA FINANCE: Fitch Cuts Rating on Class B Notes to 'CCCsf'


L A T V I A

LIEPAJAS METALURGS: Six Buyers Submit Bids


N E T H E R L A N D S

AERCAP HOLDINGS: Fitch Affirms 'BB+' IDR; Outlook Stable
DALRADIAN EUROPEAN: S&P Affirms 'BB+' Rating on Class D Notes


P O R T U G A L

BANCO ESPIRITO SANTO: S&P Lowers Counterparty Rating to 'CC'
BANCO ESPIRITO INVESTIMENTO: S&P Affirms 'C' Counterparty Rating
* PORTUGAL: Company Insolvencies and Closures Drop in H1 2014


R O M A N I A

HIDROELECTRICA: Repays EUR30 Million Loan to RBS Bank


U K R A I N E

METINVEST BV: Will Meet Payments on Eurobonds, CEO Says
UKRAINE: EU Sanctions Against Russia Hit Various Business Sectors


U N I T E D   K I N G D O M

CABER LIMITED: Directors Banned For 9 Years
CARBON GREEN: Placed Into Provisional Liquidation
CASH STORE: Goes Into Administration After Three Years of Trading
CITY TV: Goes Into Administration
EXPRO HOLDINGS: S&P Affirms 'B' Rating on Proposed Term Loan B

GOLDSTAR LAW: High Court Enters Windup Order
PUNCH TAVERNS: Dando to Get Bonus if Debt Restructuring is OK'd


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A R M E N I A
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VTB BANK ARMENIA: Moody's Assigns Ba1 Local Curr. Deposit Rating
----------------------------------------------------------------
Moody's Investors Service has assigned the following ratings to
VTB Bank (Armenia) (VTBAR): local currency deposit rating of Ba1,
foreign currency deposit rating of Ba3, bank financial strength
of D- (equivalent to a ba3 baseline credit assessment [BCA]), and
Not-Prime short-term deposit ratings. The bank's long-term global
local currency deposit rating carries a negative outlook, the
long-term global foreign currency deposit rating and the BFSR
carry a stable outlook.

VTBAR's Ba1 long-term local currency deposit rating incorporates
the rating agency's assessment of a high probability of parental
support from Russia-based Bank VTB JSC (deposits Baa2 negative;
BFSR D- negative/BCA ba3). As a result, VTBAR's deposit ratings
receive two notches of uplift from its ba3 BCA.

VTBAR's standalone D- BFSR is supported by the bank's (1) close
integration into the VTB group, which facilitates VTBAR's
business origination and supports its funding and liquidity
profile; (2) strong franchise in the corporate and retail
segments in Armenia; and (3) good financial fundamentals namely
capital adequacy, profitability and efficiency. Factors
constraining the bank's standalone ratings include its aggressive
lending strategy in 2010-13, which could result in heavy credit
losses upon seasoning, as well as high credit risk
concentrations.

The rating action is based on VTBAR's audited IFRS accounts for
2013, 2012 and 2011, statutory accounts as at end-March 2014, and
information provided by the bank's management.

Ratings Rationale

Moody's support assumptions for VTBAR's deposit ratings take into
account: (1) close geopolitical and economical links between
Russia and Armenia; (2) VTBAR's high integration into VTB, which
shares its name and brand; and (3) the VTB group's commitment to
develop its Armenian franchise, which is evidenced by regular
capital and funding allocation. The foreign currency deposit
rating of Ba3 is constrained by the country's foreign currency
deposit ceiling of Ba3.

VTBAR's close integration into VTB group provides the bank with
the parental expertise in the corporate segment and the scoring
platform in retail business, and this level of integration
facilitates VTBAR's access to long-term funding. In contrast with
other Armenian banks, VTBAR has a well-balanced liquidity profile
supported by (1) funding refinancing risks that are lower than
the market average, given that the bank finances its long-term
loans through facilities of respective maturity from the parent;
and (2) the bank's ability to tap parental funding in the event
of any distress to its liquidity or funding profile.

Moody's notes that VTBAR has visible franchise both in retail and
corporate segments with market shares of over 10% in lending
(both retail and corporate) and deposits as at 1 April 2014. In
Moody's view, the bank's position in Armenia is sufficiently
sustainable to generate stable flow of recurring revenues going
forward.

VTBAR reports good capital adequacy and recurring profitability
metrics. As of 1 April 2014, the bank's Tier 1 and total capital
adequacy ratios (under Basel II) stood at comfortable levels of
14.5% and 19.1% (according to the bank's management),
respectively, while return on average equity amounted to 16.7% in
2013. However, Moody's notes that VTBAR's rapid business growth
has outpaced that of internal capital generation in recent years,
which renders the bank dependent on external capital injections
for further growth and vulnerable to loan seasoning. The bank's
high credit risk concentration (the 20 largest credit exposures
accounting for around 229% of Tier 1 capital at 1 April 2014,
according to management data) and moderate coverage of problem
loans by loan loss reserves (around 30% as at YE2013) also
weakens its capital adequacy and profitability profile by
rendering it dependent on the performance of a few of its largest
borrowers.

What Could Change the Rating -- UP

An upgrade of VTBAR's deposit ratings could be driven by (1)
improvements in the bank's standalone creditworthiness including
a track-record of maintaining healthy asset quality through
seasoning of its rapidly grown loan book as well as its ability
to generate sufficient capital to meet business growth needs
without requiring external support; and (2) the higher deposit
ratings of the support provider -- VTB.

What Could Change the Rating -- DOWN

Downward pressure on the BFSR of VTBAR could result from a
material deterioration in capital adequacy, and/or asset quality
and liquidity metrics. A downgrade of the bank's deposit ratings
could be triggered by a change in Moody's support assumptions, or
a negative rating action on the parent bank, which can affect the
supported ratings of the subsidiaries.

The principal methodology used in this rating was Global Banks
published in July 2014.

Headquartered in Yerevan (Armenia), VTBAR reported total audited
consolidated IFRS assets of AMD302 billion (US$750 million) as at
December 31, 2013.



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A U S T R I A
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KOMMUNALKREDIT AUSTRIA: Austria to Sell EUR5.8 Billion in Assets
----------------------------------------------------------------
Boris Groendahl at Bloomberg News reports that Austria is seeking
to sell as much as EUR5.8 billion (US$7.8 billion) assets of
failed municipal lender Kommunalkredit Austria AG and may assign
the remainder to a state-owned toxic-assets vehicle.

According to Bloomberg, Kommunalkredit said in a statement on
Aug. 11 that the government will invite interested parties to
tender for as much as half of Kommunalkredit's assets in the
coming days via the Fimbag holding company.  Fimbag is allowed to
sell half the assets under European Union state aid rules after a
full sale of the company was called off last year, Bloomberg
states.

Kurier reported July 25 that Hypo NOe Gruppe Bank AG, a regional
Austrian lender is interested in Kommunalkredit's assets,
Bloomberg relays.  Format, as cited by Bloomberg, said on Aug. 1
that a group led by investor Michael Tojner and banker Willi
Hemetsberger may also bid for assets.

KA Finanz AG said in a separate statement that Kommunalkredit's
sister company where Austria warehoused the CDS and other risky
assets, may take on what's left of Kommunalkredit after a
possible sale, Bloomberg notes.

AS reported by the Troubled Company Reporter-Europe on May 17,
2013, Bloomberg News related that Kommunalkredit, previously
owned by Oesterreichische Volksbanken AG and Dexia SA, was
nationalized in November 2008 to avoid a collapse when liquidity
dried up.  It was split into Kommunalkredit, which continued as a
lender to municipalities with a revamped business model, and KA
Finanz AG, a "bad bank" that's winding down securities, loans and
credit-default swaps that aren't part of Kommunalkredit's main
business, according to Bloomberg.



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D E N M A R K
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WELLTEC A/S: Moody's Affirms 'B1' Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service has affirmed the B1 Corporate Family
Rating (CFR) of Welltec A/S ("Welltec" or "the company") and the
B1 rating on the company's $325 million senior secured notes due
2019. Moody's has also downgraded the Probability of Default
Rating (PDR) to B1-PD from Ba3-PD after increasing the Expected
Family Recovery Rate to 50%. The outlook on the ratings remains
stable.

Ratings Rationale

Welltec has continued to expand its business over the last two
years, although its rate of growth has slowed from earlier years,
with revenue growth of 9% in 2013 and company guidance of 6% for
2014, down from compound annual growth in the area of 34% from
2004-2011 and 39% in 2012 alone. This was despite introductions
of new technology during the course of 2012, such as the
expansion of its product family with the Well Cutter and the
increased focus on well completions with the Welltec Annular
Barrier. At the same time the company has maintained relatively
low Moody's adjusted leverage of approximately 2.8x and very high
EBITDA margins above 40%.

Even as Welltec's growth has slowed, the B1 rating continues to
reflect the company's still small scale, challenges to its
competitive positioning and industry adoption of its technology,
and Moody's assumptions of limited revenues outside of the core
product line.

Although Welltec states that it has advanced and differentiated
technological offerings covering all phases of the well life
cycle, Moody's views most of the company's revenue come from a
narrow product line although deployed across the well life cycle.
Welltec also currently has 2014 guidance for $340 million in
revenue and $140 million in reported EBITDA. All of these factors
align with single-B rated oilfield services companies.

Moreover, increased activity by larger oil services companies in
Welltec's core product line may create short term challenges. The
oil field services industry is dominated by large and financially
strong competitors such as Schlumberger Ltd (Aa3 stable),
Halliburton Company (A2 negative) and Baker Hughes Inc (A2
stable). These companies are able to package Welltec's tractor
and other services within their much larger integrated service
offerings, which could put pressure on Welltec's pricing and
reduce its sales volumes and margins, even as they promote
industry adoption of robotic well intervention technology and
increase the demand for the services that Welltec provides.

As a result, even though Welltec continues to exhibit strong
levels of service quality, with a 96% ratio of runs to misruns
slightly improved over 2012 levels, Moody's views it as
vulnerable to competitive pressures and challenged to speed up
adoption of robotic technology in the conservative oil and gas
industry.

The downgrade of the PDR to B1-PD, in line with the CFR, solely
reflects the doubling in size of the super senior revolving
credit facility (RCF) to $40 million and Moody's assessment of an
increase in group recovery to 50% now that it is viewed as a
capital structure that consists of bank and bond debt rather than
bonds only. The B1 rating on the $325 million secured notes due
2019, in line with the CFR, reflects that they represent the vast
majority of the debt despite ranking behind the $40 million RCF.

Moody's views Welltec's liquidity over the next 12-18 months as
good. As of 31 March 2014, it had $32 million cash and full
availability under the $40 million RCF that matures in 2017.
Despite past underperformance on cash flow expectations because
of high capital expenditures, Moody's expects positive free cash
flow over the next 12 months and there are no debt maturities
until the 2019 maturity of the notes. Covenant headroom under the
RCF is substantial.

The stable rating outlook is based on Moody's expectation that
Welltec will be able to maintain its profitability levels and
generate free cash flow. This should enable the company to
maintain its liquidity position.

Welltec's ratings are constrained by its size, scale and
concentration of revenues in a narrow product line, vulnerable to
competitive pressures. Should EBITDA exhibit continuous strong
growth, heading towards $200 million, while maintaining adjusted
debt/EBITDA below 3.0x, Welltec could be upgraded.

Negative pressure could develop on Welltec's rating if adjusted
EBIT/Interest declines below 2.0x, adjusted debt/EBITDA rises
above 4.0x, or if the conditions for a stable outlook are not
met.

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

Headquartered in Allerod, Denmark, Welltec is an oil and gas
services company specializing in well intervention using
proprietary equipment developed, tested and manufactured in-
house. The company offers intervention solutions across
conveyance, wireline, mechanical, clean-out, milling and
Riserless Light Well Intervention (RLWI) offerings. It has grown
its product range over the last few years introducing the Coiled
Tubing Well Tractor, Well Cutter and expanding into well
completions with the Welltec Annular Barrier. The company's main
services improve well production performance and increase the
amount of recoverable oil and gas reserves in reservoirs. For the
twelve months ended December 31, 2013, it reported revenues and
Moody's adjusted EBITDA of $322 million and $132 million
respectively.



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G E R M A N Y
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FORCE TWO: Fitch Hikes Rating on Class C Notes to 'BBsf'
--------------------------------------------------------
Fitch Ratings has upgraded FORCE TWO Limited Partnership's
class C notes as follows:

Class A notes (ISIN: XS0299041037): paid in full
Class B notes (ISIN: XS0299041896): paid in full
EUR3.9 million Class C notes (ISIN: XS0299042357): upgraded to
'BBsf' from 'CCCsf', Outlook Stable
EUR11.9 million Class D notes (ISIN: XS0299044056): affirmed at
'CCsf'; RE: 50%
EUR9.7 million Class E notes (ISIN: XS0299045020): affirmed at
'Csf'; RE: 0%

The transaction is a cash securitization of profit participation
agreements to German SMEs. The portfolio companies were selected
by equiNotes Management GmbH, a joint venture of IKB Private
Equity GmbH (a subsidiary of IKB Deutsche Industriebank AG) and
Deutsche Bank AG, acting as advisor for the issuer.

Key Rating Drivers

Fitch has upgraded the class C notes to 'BBsf' from 'CCCsf',
which were previously marked paid in full by the agency on
April 17, 2014. The upgrade follows the correction of an
administrative error by the principal paying agent when applying
the priority of payments. The rating action undoes the full
paydown of the class C notes. The 'BBsf' rating considers
elevated default risk given that sources and timing for
repayments are uncertain. The affirmation of the class D notes at
'CCsf' reflects Fitch's view that default is probable. The
affirmation of the class E notes at 'Csf' reflects Fitch's view
that default is inevitable.

FORCE TWO reached scheduled maturity in January 2014. The tax
liquidity facility should have been paid in full at this point,
but this did not occur. The clearing systems corrected this
misallocation and redistributed the amounts according to the
priority of payments. Based on this, the class C notes were not
redeemed in their entirety. No partial principal paydown of the
class D notes occurred. Instead, the issuer used available funds
of EUR6.7 million to repay the tax liquidity facility.

Beyond the scheduled maturity date, the first source for
repayments is tax reclaims by the issuer from the German tax
authorities. This is because withholding tax on interest receipts
from the portfolio companies can be reclaimed. Fitch has
identified a possible tax refund of EUR6.5 million for tax paid
in 2012 and 2013.

The second source of repayments is recoveries from five companies
still under management. As of the last investor report dated 24
July 2014, they had an aggregate outstanding portfolio amount of
EUR14.4 million. Taking into account negotiated amendment
agreements as well as on-going partial repayments by some
obligors, Fitch expects belated payments on the outstanding notes
from these recoveries still to be effected.

Fitch has upgraded the class C notes to 'BBsf' due to the
uncertainty of the timing and amount of the payments to
materialize. Fitch's Recovery Estimates (RE) for the class D
notes and the class E notes are unchanged at 50% and 0%. REs are
forward-looking recovery estimates, taking into account Fitch's
expectations for principal repayments on a distressed structured
finance security.

Rating Sensitivities

After scheduled maturity, the transaction is primarily sensitive
to whether or not 2012 and 2013 withholding tax on interest
payments under the profit participation agreements will be
refunded by the tax authorities as it has been done in the past.
The transaction is also sensitive to recoveries from agreements
already in place or still to be negotiated that supervise belated
payments (e.g. via standstill agreements, prolongations or
enforcement of claims by the insolvency administrator). The risks
are reflected in the ratings of the notes.


ORION ENGINEERED: Moody's Raises Corp. Family Rating to 'B1'
------------------------------------------------------------
Moody's Investors Service has concluded its review of Orion
group's ratings initiated on 21 July 2014, with the following
rating actions:

(1) Moody's upgrades Orion Engineered Carbons Holdings GmbH's
corporate family rating (CFR) by one notch to B1 and its
probability of default rating (PDR) to B1-PD. Moody's will
subsequently withdraw these ratings due to the recent corporate
reorganization of the group following the completed IPO, with
Orion Engineered Carbons S.A. ('OEC SA') established as the new
listed parent company and reporting entity of the Orion group,
owning 100% of Orion Engineered Carbons Holdings GmbH;

(2) Moody's concurrently upgrades by one notch the rating of the
outstanding senior secured notes to B1, the rating of the
existing super senior RCF to Ba1, and the rating of the
outstanding PIK toggle notes to B3. Moody's will subsequently
withdraw the ratings on all these debt instruments, as they were
redeemed in full as part of the IPO and refinancing transaction
recently completed;

(3) Moody's assigns a new CFR of B1 and a B2-PD with a positive
outlook to OEC SA, as well as a definitive B1 rating/positive
outlook to the EUR665 million equivalent term loan facility (TL
facility) and the new EUR115 million multicurrency revolving
credit facility (new RCF) borrowed by Orion Engineered Carbons
GmbH, an indirect subsidiary of OEC SA.

Ratings Rationale

Rationale for the B1 CFR

The B1 CFR reflects the new listed status of the Orion group,
which translates into a more robust governance structure, and
improved financial profile following the completion of the IPO
and refinancing transaction, which has led to a material
reduction in the group's financial indebtedness and future
financial charges. In particular, the recent establishment of
management and supervisory boards and creation of audit,
compensation and nomination and governance committees, all of
which meet the strict NYSE independence standards, will lead to a
higher degree of transparency. Moody's note that Triton Managers
Limited and Rhone Capital L.L.C. will remain reference
shareholders with a shareholding of 27.1% each, allowing them to
hold together, via a shareholders' agreement with respect to
their holdings, a majority stake in the group. At the same time,
Moody's estimates that the Orion group, pro-forma for the recent
completion of its IPO and associated refinancing, has been able
to improve its key credit metrics, in particular reducing its
gross debt/EBITDA ratio, as adjusted by Moody's, below 4x (or
slightly below 3.5x based on unadjusted figures).

The CFR is also supported by (1) the group's strong market
position as the global leader in specialty pigments and the third
largest producer of rubber blacks; (2) the group's continued
satisfactory financial performance since its Leveraged Buy Out
(LBO ) back in 2011 and Moody's expectation that management will
continue to focus on organic growth and maintain or further
improve the already relatively high operating profitability
achieved so far; (3) an adequate liquidity position, which
assumes that Orion group's positive operational cash flows,
together with the availabilities under the new RCF, remain more
than sufficient to fund the main scheduled cash outflows over the
next 12 to 18 months; (4) management's continued progress with
regard to the percentage of customer contracts containing cost-
pass through mechanisms (i.e., indexed pricing formulas); and (5)
the group's long-standing relationships with established and
reputable blue-chip clients.

The CFR however also reflects (1) the fairly modest scale of its
operations and niche business profile; (2) the historical
volatility of EBITDA given a concentrated exposure to the highly
cyclical automotive market; (3) a high level of customer
concentration in the rubber black business, given that the top
five customers are global tyre manufacturers which accounted for
approximately 57% of 2013 rubber blacks sales volume in kmt; and
(4) the carbon black production's dependency on continued
availability of carbon black oil, a by-product of refineries and
coking plants, whose prices can be highly volatile and which
typically accounts for nearly 70% of the company's total annual
manufacturing costs.

Structural Considerations

Moody's definitive rating assignment on the EUR665 million
equivalent TL facility and the EUR115 million new RCF is in line
with the provisional rating assigned on 21 July 2014. The final
terms of the facilities are substantially in line with the drafts
reviewed by Moody's for the provisional rating assignment.

The B1 rating on the new senior secured bank facilities is in
line with the CFR, and reflects the dominant position of these
new debt instruments in the capital structure of Orion group post
IPO, given all the prior indebtedness, including the super senior
revolving credit facility, the senior secured notes and the PIK
toggle notes were repaid in full. The capital structure has been
therefore simplified, with two bank facilities -- the new RCF and
the TL facility -- ranking pari-passu on a senior secured and
guaranteed basis. This is because both facilities benefit from
(1) downstream guarantees from the direct and indirect holding
companies including the listed parent OEC SA, as well as upstream
guarantees from the main operating subsidiaries representing in
aggregate more than 80% of consolidated EBITDA and assets of
Orion group; and (2) a comprehensive collateral package,
including the main assets of the Orion group. As a result, the TL
facility and new RCF are the only secured debt in the post-IPO
capital structure, with no other meaningful financial liabilities
and no unsecured debt currently contemplated. This all senior
secured bank debt structure supports Moody's assumption of a 65%
expected family recovery rate, according to the LGD methodology
used to rate the facilities. This may change in the future as the
loan documentation allows to incur additional debt, however
current bank lenders are protected by the provision that any
additional debt will need to rank either pari-passu or junior to
the TL and the new RCF. The risk from structurally senior debt
borrowed by non-restricted subsidiaries is also limited by narrow
thresholds present in the final loan documentation.

The B1 CFR was reassigned from Orion Engineered Carbons Holdings
GmbH to OEC SA, as the latter has become the listed parent
company of the Orion group and the reporting entity, with all
future audited reports and interim reports to be produced at this
level. This is also a requirement in the loan documentation of
the bank facilities, where OEC SA is defined as ultimate parent
and an original guarantor. However, the change of rating
perimeter, with the inclusion of OEC SA as new parent company,
has no credit implications, given OEC SA is a holding company
with Orion Engineered Carbons Holdings GmbH as the only
meaningful direct subsidiary. Moody's has verified that the
historical financials of Orion group, which includes OEC SA, do
not materially differ from the historical financials of the
previously rated perimeter under Orion Engineered Carbons
Holdings GmbH.

Rationale for the Positive Outlook

The positive outlook reflects Moody's expectation that Orion
group will continue to improve its financial profile and keep an
adequate liquidity position at all times, and will improve, as a
listed group, its transparency and communication with investors,
targeting a moderate dividend policy.

What Could Change the Rating UP/DOWN

An upgrade could be considered once Orion has established a
positive track record as a publicly listed company, with
financial and dividend policies consistent with the target of
maintaining or further improving its credit metrics. Furthermore,
an upgrade would require an improvement in the main credit
metrics, including (1) Moody's-adjusted debt/EBITDA ratio falling
below 3.5x on a sustained basis; (2) retained cash flow
(RCF)/debt ratio above 20% on a sustained basis; and (3) the
group maintaining a sustained positive free cash flow.
Furthermore, an upgrade will require the removal of the current
uncertainty over the potential environmental litigation risk in
the US with the Environmental Protection Agency.

Although currently unlikely, negative rating pressure may arise
if (1) Moody's-adjusted debt/EBITDA ratio increases towards 5x;
(2) the RCF/debt ratio falls below 10%; and (3) the group fails
to turn free cash flow positive. Furthermore, any material
deterioration in the company's liquidity position could
contribute towards a rating downgrade.

Principal Methodologies

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

Based in Frankfurt, Germany, Orion group is the third largest
global producer of rubber blacks by capacity and the largest
global producer of specialty pigment blacks by both volumes and
revenue. The company has 15 plants (including joint ventures)
across Europe, North and South America, Asia and South Africa.
Orion was formed on July 29, 2011, following the leveraged buyout
of the carbon black operations from Evonik Industries AG. The two
reference shareholders, Rhone Capital L.L.C. and Triton Managers
Limited, each own 27.4% of the company. In 2013, Orion reported
revenues of EUR1.34 billion.

Upgrades:

Issuer: Orion Engineered Carbons Bondco GmbH

  Senior Secured Bank Credit Facility, Upgraded to Ba1 from Ba2
  Senior Secured Regular Bond/Debenture, Upgraded to B1 from B2

Issuer: Orion Engineered Carbons Finance & Co SCA

  Senior Unsecured Regular Bond/Debenture, Upgraded to B3 from
  Caa1

Issuer: Orion Engineered Carbons Holdings GmbH

  Probability of Default Rating, Upgraded to B1-PD from B2-PD
  Corporate Family Rating, Upgraded to B1 from B2

Assignments:

Issuer: Orion Engineered Carbons GmbH

  Senior Secured Bank Credit Facility, Assigned B1

Issuer: Orion Engineered Carbons S.A.

  Probability of Default Rating, Assigned B2-PD
  Corporate Family Rating, Assigned B1

Outlook Actions:

Issuer: Orion Engineered Carbons Bondco GmbH

   Outlook, Changed To Positive

Issuer: Orion Engineered Carbons Finance & Co SCA

   Outlook, Changed To Positive

Issuer: Orion Engineered Carbons GmbH

   Outlook, Changed To Positive

Issuer: Orion Engineered Carbons Holdings GmbH

   Outlook, Changed To Positive

Issuer: Orion Engineered Carbons S.A.

   Outlook, Positive Outlook Assigned



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G R E E C E
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FRIGOGLASS SAIC: Moody's Lowers Corp. Family Rating to 'B2'
-----------------------------------------------------------
Moody's Investors Service, has downgraded Frigoglass SAIC's
corporate family rating (CFR) to B2 from B1 and probability of
default rating (PDR) to B2-PD from B1-PD. Concurrently, Moody's
has downgraded to B2 from B1 the senior unsecured rating assigned
to the notes issued by Frigoglass Finance B.V. and due 2018. The
outlook on these ratings is stable.

"Frigoglass's operating performance will remain under pressure
owing to the persisting difficult market situation and the weak
demand from some major customers. In addition, the group's
liquidity situation remains weak, with limited headroom under the
financial covenants contained in its bank facilities," says
Lorenzo Re, a Moody's Vice President - Senior Analyst - and lead
analyst for Frigoglass.

Ratings Rationale

The difficulties that emerged during the last part of 2013 are
continuing in 2014, with the marked reduction in orders, in
particular from Coca-Cola bottlers (representing slightly less
than 50% of Frigoglass's business), negatively affecting both
revenue and profitability. Frigoglass is reacting to this subdued
demand with cost savings initiatives and the closure of some non-
performing units, including plants in the US and Turkey. However,
Moody's expects that these measures will only have a limited
near-term effect and forecasts that operational performance will
remain under pressure in 2014, with some improvements visible
from 2015.

In this context, Moody's forecasts Frigoglass's financial
leverage at December 2014, measured by debt/EBITDA (including
Moody's adjustments), to slightly deteriorate from the 5.4x level
of December 2013 and to remain above 5.0x in the next 12-18
months. The rating agency expects that the retained cash flow
(RCF)/net debt ratio will remain in the mid-to-high single digit
(from 8.2% in 2013) through end-2015. These metrics are in line
with the B2 rating.

The rating of Frigoglass is also constrained by its weak
liquidity, mainly owing to its tight headroom under the financial
covenants of the two revolving facilities. Although Frigoglass
was in compliance with these covenants at the June 2014 testing,
Moody's cautions that, should the operating performance
deteriorate further, the group could face difficulties in meeting
its financial covenants going forward. As at June 2014
approximately EUR22 million out of the EUR50 million revolving
credit facilities were utilised and the group had EUR69.8 million
of cash available on balance sheet.

Rationale for Stable Outlook

The stable outlook reflects Moody's expectation that, although
trading condition will remain challenging in the next 6-12
months, Frigoglass will be able to moderately improve its
operating performance and credit metrics from 2015, with
financial leverage remaining at a level commensurate with the
current rating.

What Could Change the Rating -- UP/DOWN

Moody's does not expect any upward pressure on the rating in the
short term. However, improvements in operating performance,
through the group restructuring program and recovery in trading
conditions, leading to financial leverage below 4.5x, RCF/net
debt above 10% and an EBITA interest cover approaching 2x, would
exert positive pressure on the rating, provided that the company
concurrently improves its liquidity position.

Conversely, further deterioration of trading conditions, leading
to an increase in leverage towards 6.0x and sustained negative
FCF generation would cause negative rating pressure. A rating
downgrade could also follow deterioration in the liquidity
position and the group's inability to maintain, or restore as
required, sufficient headroom under its financial covenants.

Principal Methodologies

The principal methodology used in these ratings was the Global
Manufacturing Companies published in July 2014. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Incorporated in Greece, Frigoglass has a widespread global
presence, with a focus on countries in both Western and Eastern
Europe (accounting for 11% and 30% of the group's revenues,
respectively), Africa and the Middle East (34% of revenues) and
Asia and Oceania (21%). The group produces beverage refrigerators
for global players in the beverage industry, with key customers
including Coca-Cola Company bottlers, major brewers, Pepsi and
dairy companies. Truad Verwaltungs A.G. owns approximately 45% of
Frigoglass and is a long-term investor in the group. Truad
Verwaltungs A.G. is a trust representing the interests of the
Leventis family and no member has a majority vote.



=============
I R E L A N D
=============


CAVENDISH SQUARE: S&P Lowers Rating on Class C Notes to 'BB-'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'BB- (sf)' from
'BB (sf)' its credit rating on Cavendish Square Funding PLC's
class C notes.  At the same time, S&P has affirmed its ratings on
the class A1-N, A2, and B notes.

The rating actions follow S&P's analysis of the transaction using
data from the June 30, 2014 trustee report, and the application
of its relevant criteria.

The transaction's post-reinvestment period began in Feb. 2011.
The class A-1N notes have amortized by about EUR39.8 million
since S&P's May 23, 2013 review.  From S&P's analysis, it
observed that the aggregate collateral amount has decreased by
more than the reduction in the liabilities (EUR47.9 million), due
partly to losses in the portfolio.  These developments have led
to an increase in the available credit enhancement for the class
A-1N and class A2 notes, and a reduction in the available credit
enhancement for the class B and C notes.

The portfolio's credit quality has decreased since S&P's previous
review.  The proportion of assets that S&P considers to be
defaulted (rated 'CC', 'C', 'SD' [selective default], or 'D') has
increased to 10.4% from 5.7% of the portfolio balance, excluding
cash.  The proportion of assets that S&P rates in the 'CCC'
category ('CCC+', 'CCC', and 'CCC-') has remained similar, at
about 13% of the performing portfolio.  The proportion of assets
rated 'BB-' and above has decreased by 5.2% over the same period.

"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 gave credit to an aggregate collateral
amount of EUR205.3 million, used the reported weighted-average
spread of 1.56%, and the weighted-average recovery rates
calculated in accordance with our 2012 criteria for
collateralized debt obligations (CDOs) of pooled structured
finance assets.  We applied various cash flow stresses using our
standard default patterns and timings for each rating category
assumed for each class of notes," S&P said.

S&P's analysis indicates that the available credit enhancement
for the class A1-N, A2, and B notes in this transaction is
commensurate with their currently assigned ratings.  S&P has
therefore affirmed its ratings on these classes of notes.

S&P's credit and cash flow analysis indicates that the class C
notes' scenario default rates (SDRs) exceed their BDRs at S&P's
currently assigned rating level.  The SDR is the minimum level of
portfolio defaults that S&P expects each CDO tranche to be able
to support the specific rating level using Standard & Poor's CDO
Evaluator.  S&P has therefore lowered to 'BB-(sf)' from 'BB(sf)'
its rating on the class C notes.

The application of the largest obligor default or largest
industry test did not constrain S&P's ratings on any of the
classes of notes.

Cavendish Square Funding is a cash flow mezzanine structured
finance CDO of a portfolio that comprises predominantly mortgage-
backed securities.  The transaction closed in February 2006 and
AE Global Investment Solutions Ltd. manages it.

RATINGS LIST

Class        Rating             Rating
             To                 From

Cavendish Square Funding PLC
EUR297.45 Million Secured Floating-Rate Notes Revolving Credit
Facility Secured Fixed-Rate Notes And Subordinated Notes

Rating Lowered

C            BB- (sf)           BB (sf)

Ratings Affirmed

A1-N         BBB+ (sf)
A2           BB+ (sf)
B            BB+ (sf)


KOSMOS ENERGY: Fitch Assigns Final 'B' Rating to Notes Due 2021
---------------------------------------------------------------
Fitch Ratings has assigned Kosmos Energy Ltd.'s (KOS; B/Stable)
USD300 million 7.875% senior secured notes due 2021 a final
'B'/'RR4' rating.

The notes are issued at the holding company level and
subordinated to the USD1.5 billion reserve based facility (RBF)
raised by Kosmos Energy Finance International (USD800 million
outstanding as at June 30, 2014).  "We do not notch down the
rating of the notes from the company's Issuer Default Rating
(IDR) given its fairly strong recovery prospects.  However, we
may reconsider this approach and notch down the notes' rating if
the balance under the prior-ranking RBF exceeds USD1 billion,"
Fitch said.

KOS is a small but growing oil and gas exploration and production
company focused on the offshore Atlantic margin with 2013 net
production of 23 thousand barrels per day (mbpd) from the
offshore Jubilee field in Ghana (B/Negative).  The company has a
24.1% working interest in the Jubilee field, which produces
around 100mbpd. In 2013 KOS generated USD645 million in EBITDAX
(EBITDA before exploration expenses).

KOS's rating and Outlook are supported by its developed producing
asset base at Jubilee, fairly low production costs of around
USD10 per barrel, competitive full-cycle development costs
compared with similarly sized peers and conservative leverage.
The rating is constrained, however, by the company's small
upstream-focused operating scale and low diversification.

Key Rating Drivers

Business Scale Determines Ratings
KOS's scale of operations and limited geographical
diversification are dominant drivers of its 'B' ratings. Its
business profile is constrained by its limited market share
relative to other upstream exploration and production peers. KOS
intends to boost production by developing two sites in close
proximity to the Jubilee field, TEN (Tweneboa, Enyenra, Ntomme)
and MTA (Mahogany, Teak, Akasa), but this is unlikely to
dramatically change the company's industry position in the medium
term.

"We now assume KOS's net production will not significantly exceed
40mbpd over the next three to five years. KOS's Fitch-rated peers
include China- and Kazakhstan-focused MIE Holdings (B/Stable,
2013 production: 15 thousand barrels of oil equivalent per day
(mboepd)), Nigeria- and Kurdistan-focused Afren plc (B+/Rating
Watch Negative; 47mboepd), and US-based Energy XXI Gulf Coast
(Delaware) (EXXI Gulf Coast; B/Stable; pro-forma for acquired
assets: 65mboepd)," Fitch said.

Concentrated Production

KOS's production remains highly concentrated in offshore Ghana.
Jubilee now accounts for 100% of KOS's total production and
booked reserve base. At end-2013 KOS had proved oil and gas
reserves of 47 million barrels (mmboe), which translates into
reserve life of six years; lower than that of MIE Holdings (15
years) and Afren (nine years).  "However, we estimate it should
increase to around nine years and will be on a par with that of
Afren once KOS has booked the TEN development reserves. We
believe that Ghana is likely to dominate KOS's output in the
medium term despite other exploration projects currently underway
off the coast of west Africa. The concentration in Ghana and the
company's current reliance on the Jubilee field expose KOS to
elevated geological risks, as well as legal, political and tax
risks, in our view," Fitch said.

Elevated Country Risks

KOS is exposed to elevated country risks, as its operations are
concentrated in Ghana. Ghana has a strong business environment
relative to that of other African countries, ranking 67 out of
189 in the World Bank's Doing Business Survey. It is also safer
compared with some other parts of Africa such as the Niger Delta,
where local groups often attack companies in the area leading to
interrupted production, and oil theft. However, the country's
public finances are weak.

"We expect that the tax regime for oil companies in Ghana will
not change over the medium term, and KOS's tax burden will not
materially increase. However, this possibility cannot be ruled
out due to Ghana's high budget deficit. We also assume that KOS's
operations would not necessarily be affected by capital controls
or other possible restrictive measures, since the company's
proceeds do not flow through Ghana, and its cash assets are kept
primarily outside Ghana. We therefore do not cap KOS's rating at
the sovereign rating or the Country Ceiling. However, we may
review this approach if the government attempts to revise the tax
regime in Ghana," Fitch said.

Substantive Exploration Portfolio

KOS has a wide exploration portfolio, including several license
blocks in offshore west Africa, Suriname and Ireland. This should
help KOS's replenishment of its reserves, given its fairly low
proved reserve life compared with other emerging market peers.
However, the company's exploration budget (around USD500 million
in 2014-2016) may put a strain on its free cash flow (FCF), while
the upside from these investments is not guaranteed. A failure to
translate exploration spending into increased proved reserves
could negatively affect the ratings.

Conservative Mid-Cycle Leverage

"We expect KOS's leverage will increase over the next two years
as its operating cash flows decrease because of rising cash taxes
and capital intensity. Based on our conservative assumptions, we
expect the company's funds from operations (FFO) adjusted net
leverage to fluctuate around 2x-2.5x, compared with 1.1x in 2013.
This is comparable with mid-cycle leverage of its peers such as
Afren (2.0x), EXXI Gulf Coast (2.1x), MIE Holdings (2.5x) and
Newfield Exploration Company (BB+/Stable; 2.0x). We also believe
KOS will be FCF negative until at least 2016-2017. We do not
expect KOS to pay any dividends in the medium term, as per its
dividend policy," Fitch said.

Liquidity and Debt Structure

Strong Liquidity
At June 30, 2014 KOS's liquidity position was strong. The company
had no short-term debt, and available cash of USD622 million.
Additional liquidity support is also available in the company's
USD1.5 billion RBF (USD700 million undrawn) and its undrawn
USD300 million revolving credit facility.

USD300 million Notes Rated 'B'
The notes are subordinated to KOS's USD1.5 billion RBF. However,
we do not notch down the rating of the notes from the company's
IDR given its fairly strong recovery prospects.

"At June 30, 2014 the amount outstanding under the RBF was USD800
million, and we do not expect it to exceed USD1 billion.
Moreover, during financial distress KOS would not be able to draw
down additional funds under the facility as the available
borrowing base is reconsidered at least twice a year, and may be
reassessed at the request of the lender. However, we may notch
down the notes' rating if the balance under the prior-ranking RBF
exceeds USD1 billion," Fitch said.

Rating Sensitiveness

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

-- Improvement to the upstream business profile (e.g. net
    production of at least 40mbpd per day)

-- Enhanced asset quality (e.g. proved reserve life above nine
    years).

-- Extremely conservative financial profile given the company's
    small scale (e.g. FFO adjusted net leverage consistently
    below 2x).

-- Positive FCF on a sustained basis.

-- Organic reserve replacement ratio sustainably above 100%.

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

-- Significant project delays and cost overruns at the TEN and
    MTA blocks.

-- Exploration and development expenditure failing to produce a
    rising reserve base.

-- Deterioration in liquidity (e.g. cash and credit lines
    amounting to less than 50% of short-term debt).

-- Leverage rising above expectations (e.g. consistently above
    3.5x), which would be a distress signal for a company of this
    size.

-- Unfavorable tax changes having a direct impact on KOS's cash
    generating ability.

-- Organic reserve replacement ratio significantly below 100%.


RMF EURO CDO IV: S&P Lowers Rating on Class V Notes to 'B-(sf)'
---------------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions in RMF Euro CDO IV PLC.

Specifically, S&P has:

   -- raised its ratings on the class I, II, and III notes;

   -- affirmed its 'BB+ (sf)' ratings on the class IV-A and IV-B
      notes; and

   -- lowered to 'B- (sf)' from 'B+ (sf)' its rating on the class
      V notes.

The rating actions follow S&P's analysis of the transaction using
data from the trustee report dated June 9, 2014, and the
application of S&P's relevant criteria.

Since S&P's previous review on Nov. 29, 2012, the class I notes
have continued to amortize to 39% of their initial balance.  As a
result, S&P has observed that the overcollateralization for all
of the rated classes of notes has increased.

S&P conducted its cash flow analysis to determine the break-even
default rate (BDR) for each rated class of notes at each rating
level.  The BDR represents S&P's estimate of the maximum level of
gross defaults, under its stress scenarios, that a tranche can
withstand and still fully pay interest and principal to the
noteholders.

"In our analysis, we gave credit to an aggregate collateral
amount of EUR232.92 million.  We calculated the weighted-average
recovery rates in line with our corporate cash flow
collateralized debt obligation (CDO) criteria.  Since the
portfolio is no longer subject to reinvestments, we believe it is
exposed to the risk of reduced weighted-average spread.
Therefore, in scenarios above the initial ratings, we have
assumed that the nondefaulted assets paid a weighted-average
spread of 2.57%, instead of the actual weighted-average spread of
4.14%," S&P noted.

The results of S&P's analysis show that the class I, II, and III
notes' available credit enhancement is now commensurate with
higher ratings than those currently assigned.  S&P has therefore
raised its ratings on these classes of notes.

Since S&P's previous review, it has also observed that the
obligor concentration increased as the number of obligors
decreased to 56 from 91.  As a result, the application of the
largest obligor default test constrained S&P's ratings on the
class IV and V notes at 'BB+ (sf)' and 'B- (sf)', respectively.
This test considers the effect of several of the largest obligors
defaulting simultaneously.  S&P introduced this supplemental test
in its criteria update for corporate CDOs.  S&P has therefore
affirmed its 'BB+(sf)' ratings on the class IV-A and IV-B notes,
and lowered to 'B-(sf)' from 'B+(sf)' its rating on the class V
notes.

RMF Euro CDO IV is a cash flow collateralized loan obligation
(CLO) transaction managed by Pemba Credit Advisers.  It is backed
by a portfolio of loans to primarily European speculative-grade
corporate firms.  The transaction closed in December 2006 and its
reinvestment period ended in May 2012.

RATINGS LIST

RMF Euro CDO IV PLC
EUR444 mil fixed- and floating-rate notes
                     Rating
Class   Identifier   To         From
I       74963EAA7    AAA (sf)   AA+ (sf)
II      74963EAB5    AA+ (sf)   A+ (sf)
III     74963EAC3    A+ (sf)    BBB+ (sf)
IV-A    74963EAD1    BB+ (sf)   BB+ (sf)
IV-B    74963EAM1    BB+ (sf)   BB+ (sf)
V       74963EAE9    B- (sf)    B+ (sf)



=========
I T A L Y
=========


FRANCO TOSI: Offer Deadline Extended to September 30
----------------------------------------------------
Dr. Andrea Lolli, the Extraordinary Commissioner of Franco Tosi
Meccanica SpA, in Amministrazione Straordinaria, disclosed that
the deadline for the submission of binding offers for the
conveyance of the "Business Unit" of the Company has been
extended to 1:00 p.m. (Italian time) on Tuesday, September 30,
2014, in consideration of the significant changes in the Business
area occurred after the publication of the Call for Tender.

The Call for Tender was published in the Official Journal of the
Italian Republic no. 47 on April 28, 2014.

The tender documentation is available on
www.francotosimeccanica.it


LUCCHINI SPA: Jindal Acquisition Talks in Final Stages
------------------------------------------------------
James Crabtree and Rachel Sanderson at The Financial Times report
that Indian billionaire Sajjan Jindal is in the final stages of
negotiations to buy Lucchini SpA.

According to the FT, two people familiar with the matter said
that Mr. Jindal's JSW Steel plans to purchase assets owned by the
bankrupt Italian company for a nominal sum.  Lucchini was
formerly owned by Severstal of Russia but was declared insolvent
in 2012, the FT recounts.

Matteo Renzi, Italy's prime minister, as cited by the FT, said on
Sunday that a business owned by India's Jindal family intended to
finalize a deal in "a matter of days".

Since then, people familiar with the deal have confirmed that
Mr. Jindal's JSW is aiming to purchase the steel rolling
facilities belonging to the Italian company, with a view to
processing steel manufactured and exported from India, for sale
in European markets, the FT notes.

"JSW would take it over . . . but it won't involve much upfront
investment," the FT quotes one of the people involved as saying,
speaking on condition of anonymity.

Lucchini SpA is Italy's second biggest steel producer.


PHARMA FINANCE: Fitch Cuts Rating on Class B Notes to 'CCCsf'
-------------------------------------------------------------
Fitch Ratings has downgraded Pharma Finance 3 S.r.l.'s (PF3)
class A and B notes, as follows:

EUR54.6 million class A floating-rate notes: downgraded to 'Bsf'
from 'BBB-sf'; Outlook Negative

EUR6.1 million class B floating-rate notes: downgraded to
'CCCsf' from 'BB+sf'; Recovery Estimate: 30%

EUR9.5 million class C floating-rate notes: affirmed at 'AAAsf';
Outlook Stable

PF3 is a securitization of loans granted to pharmacists to fund
the purchase of licenses and premises, or of quotas of company-
owning and managing pharmacies, or to finance other general
corporate purposes. The loans were originated and are serviced by
Comifin S.p.A., an Italian specialized lender.

Key Rating Drivers

Continuous Deterioration of Asset Performance
Until the June 2013 payment date, there were no reported arrears
or defaults. However, EUR6.9 million of defaults were posted in
2Q13. In the past three quarters, new defaults have accelerated
considerably, reaching EUR23.3 million on a cumulative gross
basis. The total number of contracts reported as defaulted are 25
on a total of 146 still outstanding loans.

Some of the contracts did not pass through the arrears status as
the originator directly classified them as defaulted (in
accordance with Bank of Italy's regulations) following the
borrowers' request of a 'concordato preventivo in continuita'
(CPC, composition with creditors). Moreover, the loans in arrears
have not been cured, with delinquencies migrating to default
status due to protracted payment delays.

The current cumulative default rate of 10.8% is now significantly
above Fitch's initial lifetime expectation of 5%. As a result of
the continued negative outlook for the asset performance, Fitch
has revised its lifetime default expectation to 23%, implying a
remaining portfolio expectation of 42%.

Pharmacists' Creditworthiness in Jeopardy
The recent defaults are evidence of how pharmacists'
creditworthiness can quickly deteriorate, irrespective of the
indirect connection to the sovereign. The pharmacist industry is
increasingly exposed to the troubled economic environment and is
enduring a liquidity crisis mainly stemming from less favorable
payment terms imposed by the larger suppliers. Given the
difficulties encountered in financing the increasing working
capital, Fitch expects a further deterioration of the
transaction's performance.

Increased Liquidity Risk
In June 2013 the PDL was debited for the first time, the net
excess spread (ES) was fully used and since then all gross ES has
been used to partially clear the uncovered PDL. The total
uncovered PDL has since considerably increased to EUR19.7m (or
28% of the rated notes).

Until the PDL is fully cleared, the cash reserve balance will
remain zero, exposing the transaction to increased payment
interruption risk. This is even more heightened for this
transaction, as unlike most Italian ABS deals, principal
collections cannot be used to cover interest shortfalls. However,
upon a servicer event of default, which includes the missed
transfer of collections on a timely basis, a EUR2.2m commingling
reserve held at an eligible counterparty is available to cover
the interest payment shortfall.

The transaction documentation envisages a servicer termination
event if the PDL is not cleared on two consecutive payment dates.
The issuer or the representative of the noteholders is now able
to call a termination event and appoint a replacement according
to the back-up servicing agreement. To date, this option has not
been exercised.

Originator/Servicer's Financial Difficulties
Comifin SpA has reached an agreement with its own creditors to
restructure its financial debt. As part of this agreement,
Comifin SpA ceased to originate new loans and refocused on
servicing the portfolio under management (two-thirds of which
consist of securitized loans).

The originator is currently undergoing legal action for unlawful
lending ('concessione abusiva del credito') by two obligors. The
originator views these as unsubstantiated as a similar lawsuit
was filed and already repealed by the bankruptcy receiver of the
plaintiff. Lawsuits against financial companies lending to
consumers and small business are increasingly common in Italy,
this is not specific to Comifin. The plaintiffs are usually
already defaulted so it does not weigh on the default performance
of the securitized pools but could negatively affect their
recovery output. The originator's financial troubles, together
with the pool's weak performance, suggest that the loan book and
the securitized assets are a negative selection of the overall
pharmacist's loan market.

Revised Recovery Assumption
Fitch has revised its recovery assumption from 15% to 30%, in
line with the unsecured recovery assumption for Italian SMEs.
Fitch believes that borrowers that are classified as defaulted
because of their request for a CPC should, if their request is
ruled out by a judge, resume regular payments, thus increasing
the overall recovery rate of the pool.

Rising Obligor Concentration Risk
The performance deterioration has increased the obligor
concentration risk, which was already high due to the small
number of securitized loans left in the pool (146). The decrease
in credit enhancement due to the inability to fully provision for
the numerous defaults increases the exposure of the noteholders
to the concentrated pool.

The increasing risks led to the downgrade of the class A and B
notes. The ratings of the class A and B notes are differentiated
as the pharmacists' defaults have proven that the transaction is
exposed not only to a systemic event risk on the sovereign, to
which the different classes are exposed in almost equal measure,
but also to the systematic risk run by the pool's single
industry. The class A noteholders are more protected from the
latter kind of risk than the class B noteholders due to higher
credit enhancement (19.6% vs. 10.8%).

If all current delinquencies roll over to defaults (no arrears
have been cured until now), the class B notes would be
undercollateralized and its repayment would depend on recovery
proceeds from defaulted assets. A rating of 'CCCsf' adequately
represents the current status of class B notes, which are
increasingly depending on recoveries from defaulted assets and
more likely to incur principal losses. The Recovery Estimate of
30% is also strongly dependent on incoming recoveries.

Both the 'Bsf' rating and Negative Outlook on the class A notes
reflect the expected volatility in the performance assumptions,
which are a result of the concentrated portfolio and the
uncertain nature of the recoveries, which have yet to materialise
at this stage.

The European Investment Fund (AAA/Stable/F1+) guarantees the
class C notes and will cover any interest or principal shortfall
under the class C notes. As a result, the class C notes have been
affirmed.

Rating Sensitivities

As a sizeable part of the debited PDL is still uncleared, a
further wave of defaults would cause further downgrades of the
class A and B notes as the inability of the structure to cover
for defaults would jeopardize the ultimate repayment of the
notes' principal.

One of the main drivers of future performance would be the timing
and size of the recovery inflows. Should the recovery inflows be
lower than what expected by Fitch, further downward pressure on
the ratings is possible.



===========
L A T V I A
===========


LIEPAJAS METALURGS: Six Buyers Submit Bids
-------------------------------------------------------------
The Baltic Course, citing LETA, reports that a total of six
prospective investors have submitted their bids for buying
Liepajas metalurgs.

The bids have been submitted by investors from Eastern and
Western Europe, the company's insolvency administrator Haralds
Velmers informs in a statement to the media, according to the
Baltic Course.

The report relates that by August 31 when the Liepajas metalurgs
sale deal is to be signed, investors' offers will be analyzed in
detail, as well as other conditions offered by the investors, and
opportunities for harmonizing their offers with three Liepajas
metalurgs secured creditors.

Liepajas Metalurgs is a Latvian metallurgical company.

The Liepaja Court commenced Liepajas metalurgs' insolvency
process on Nov. 12 last year.  Haralds Velmers was appointed
insolvency administrator.  Over 1,500 Liepajas metalurgs workers
have been laid off so far.  Liepajas metalurgs halted production
last spring.



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


AERCAP HOLDINGS: Fitch Affirms 'BB+' IDR; Outlook Stable
--------------------------------------------------------
Fitch Ratings has completed a peer review of three rated aircraft
lessors, resulting in the affirmation of the long-term Issuer
Default Ratings (IDRs) of AerCap Holdings N.V. (AER, 'BB+'),
Aviation Capital Group Corp. (ACG, 'BBB-') and BOC Aviation Pte
Ltd (BOC Aviation, 'A-'). The Outlooks remain Stable. Company-
specific rating rationales are described below, and a full list
of rating actions is provided at the end of this release.
The aircraft leasing sector has experienced another year of
strong performance, which has been characterized by strong
airline industry fundamentals, favorable credit markets,
improving lease rates and consolidation among lessors.
Profitability in the airline industry has continued to improve
this year, which has resulted in a lack of significant credit
issues among the lessors. Aircraft financing has become more
plentiful with increasing investor appetite and the
securitization market re-emerging. This favorable environment has
attracted new competition from a variety of sources, both global
and regional in nature. As the industry has grown, the market has
become more segmented with numerous strategies and value
propositions. Among the challenges aircraft lessors will need to
navigate over the coming years are industry cyclicality,
competitive pressures on underwriting standards, large aircraft
order books, residual value risk associated with older model
planes, and rising interest rates.

The aviation cycle has the tendency to change direction rapidly
and remains highly sensitive to exogenous shocks. While lessors
have proven to be more resilient than airlines due to their
ability to redeploy aircraft, Fitch's ratings on the sector are
constrained by its singular focus on aircraft assets and reliance
on wholesale funding markets. The lack of price transparency for
aircraft makes it more difficult to analyze the residual values
of lessors' fleets. Therefore, shareholders' equity is
susceptible to impairments, particularly for lessors with older
and less frequently traded portfolios.

Supply of new aircraft has become more constrained, as
manufacturers have seen strong new order activity from both
lessors and airlines and accumulated record backlogs. Orders
being placed at the upper point in the cycle naturally tend to be
more expensive, which increases the risk that these aircraft will
not meet their long-term return hurdles and increase residual
risk. For the most popular narrow-body models, order books of
eight to nine years today compare with six to eight years in the
mid-2000s and just three to five years in the early 2000s.

The secondary market for aircraft has also heated up, with a
number of new entrants, including Business Development Companies,
insurance companies and private equity firms. Operating lessors
should stand to benefit from this development, particularly those
that strive to maintain young fleets by selling older aircraft as
they take delivery of new equipment. However, it is important to
note that secondary market liquidity is also driven by narrow
funding spreads and could dry up relatively quickly.

AerCap's acquisition of International Lease Finance Corp (ILFC),
which closed in May 2014, was an important and positive industry
development for several reasons. The transaction represented what
is expected to be the last transfer of a large fleet of leased
aircraft, following RBS's sale of its aircraft leasing business
to Sumitomo in 2012 and CIT's re-emergence from bankruptcy in
2009. In Fitch's view, material consolidation in the industry is
now complete, with two large players (AerCap and GECAS)
controlling close to half of all lessor-owned aircraft globally.
Additionally, the increase in the sector's market capitalization
has increased investor visibility and should lead to improved
access to capital markets for other aircraft lessors. There have
been several IPO filings in recent months, including Avolon and
China Aircraft Leasing Co.

AerCap Holdings N.V.

Key Rating Drivers -- IDRs

Today's affirmation of AerCap's Long-term IDR of 'BB+' is
supported by the recently expanded scale of the company's
franchise, robust funding and liquidity profile, and strong
management team. The ratings are constrained by increased balance
sheet leverage, execution and integration risk associated with
the ILFC acquisition, recent change in strategic direction and
the increased fleet age. AerCap's recent acquisition of ILFC was
transformative and fundamentally changed the company's risk
profile and strategic direction.

AerCap's balance sheet leverage has increased materially,
primarily as a result of the assumption of ILFC's existing debt
and acquisition-related purchase accounting. Therefore, AerCap's
credit profile has initially become riskier, but Fitch expects it
to improve over time as the acquisition is integrated and equity
is built up through retained earnings. The 'BB+' rating is
supported by the company's plans to maintain a conservative
capital policy with a targeted debt-to-equity ratio (as reported)
of approximately 3.0x. Fitch believes the combined business
offers fairly good visibility into future earnings and operating
cash flows, which underpins the company's de-leveraging plan.

Fitch believes that the best measure of financial leverage for
the combined company is tangible debt-to-tangible equity. This
measure adjusts for certain accounting assets and liabilities
that will be created as a result of purchase accounting, and is
more reflective of the economic value of the balance sheet than
the reported debt-to-equity ratio. Some of the adjustments
include the fair value (FV) adjustment to ILFC's debt, the FV of
the order book, and the lease premium. According to Fitch's
estimates, the tangible debt-to-tangible equity ratio was 5.1x as
of March 31, 2014, higher than the reported pro forma leverage
figure of 4.5x. However, the two measures are expected to
converge as the purchase accounting adjustments get accreted over
time.

The acquisition requires significant integration efforts, which
will continue to consume meaningful time and effort of AerCap's
senior management team. In Fitch's view, the acquisition brings a
significant amount of integration and execution risk as AerCap
transfers ILFC's fleet and ILFC's staff onto AerCap's platform.
These risks are mitigated to some extent by AerCap's scalable
operating platform (including its interest in AerData), the
relatively small number of employees at ILFC, overlapping
locations of regional offices, and prior ownership of the
AeroTurbine platform which has been reacquired as part of the
transaction.

Fitch believes that the acquisition has resulted in a significant
shift to AerCap's current business strategy. The size of the
fleet has increased dramatically to approximately 1,200 aircraft
from 238 as of March 31, 2014; and its average age has increased
by roughly two years, to over seven years from 5.6 years as of
March 31, 2014. Historically, AerCap's strategy focused on newer
aircraft, a modest fleet size and a moderate order book supported
by a predominantly secured funding profile.

With the acquisition of ILFC, AerCap has become the owner of one
of the largest order books in the industry. Fitch recognizes that
ILFC's orders represent some of the most in-demand aircraft in
the market and were placed at attractive prices and delivery
slots. However, the long-term nature of the commitments creates a
liability that may need to be funded at a time when capital is
not readily available. Furthermore, given the cyclical nature of
the aviation market and continual technological advances, the
contracted purchase price of the aircraft could potentially
exceed the market value on the delivery date.

Despite the concerns cited above, Fitch believes that the
acquisition offers potential long-term strategic benefits for
both AerCap's and ILFC's creditors. The economics of the combined
business have remained intact, with no immediate impact to lease
cash flows and a relatively modest increase in the debt balance
to fund the cash portion of the purchase price. AerCap expects to
reap significant tax benefits by re-domiciling the vast majority
of ILFC's assets to Ireland and transferring ILFC's large
deferred tax liability to AIG.

AerCap's post-acquisition liquidity position stands at
approximately US$6 billion, composed of US$2 billion in
unrestricted cash and US$4 billion of undrawn revolver
availability, as of March 31, 2014. The company plans to maintain
a liquidity buffer (including cash flow from operations,
unrestricted cash and undrawn revolvers) at 120% of debt
maturities and capital expenditures over the next 12 months.
Fitch views this as an appropriate liquidity framework given
AerCap's significant purchase commitments and debt maturities.

KEY RATING DRIVERS -- AerCap & ILFC Senior Unsecured Debt

The equalization of the unsecured debt with the IDR reflects
material unsecured debt, as a portion of total debt, as well as
strong unencumbered asset coverage of unencumbered debt. The
acquisition of ILFC has significantly expanded AerCap's access to
unsecured funding, which now represents approximately 60% of
total debt. Furthermore, AerCap has acquired a large pool of
unencumbered aircraft, which will provide support to unsecured
creditors going forward.

KEY RATING DRIVERS -- AerCap & ILFC Senior Secured Debt

AerCap's and ILFC's senior secured debt ratings of 'BBB-' are
one-notch above the long-term IDR, and reflect the aircraft
collateral backing these obligations.

The ratings assigned to the senior secured debt issued by Flying
Fortress, Inc. and Delos Finance SARL, both wholly owned
subsidiaries of ILFC, are equalized with the IDR of ILFC. This
debt is secured via a pledge of stock of the subsidiaries and
related affiliates and is guaranteed by ILFC on a senior
unsecured basis. The ratings on these secured term loans are not
notched above ILFC's IDR due to the lack of a perfected first
priority claim on aircraft provided to support repayment of the
term loan. Furthermore, there is a risk of substantive
consolidation of Flying Fortress, Inc., Delos Finance SARL and
related affiliates in the event of an ILFC bankruptcy.

Key Rating Drivers -- ILFC Hybrid Debt

The rating of 'B+' reflects a three-notch differential between
the long-term IDR and preferred stock rating. This is consistent
with Fitch's 'Treatment and Notching of Hybrids in Non-Financial
Corporate and REIT Credit Analysis' criteria published on Dec.
23, 2013.

Rating Sensitivities -- AerCap & ILFC IDRs, Senior Unsecured
Debt, Senior Secured Debt and Hybrid Debt

Fitch believes positive rating momentum is possible over the
longer term as AerCap continues to execute on the plan outlined
at the time of the ILFC acquisition. More specifically,
successful integration of ILFC's fleet and staff, a reduction of
balance sheet leverage as outlined by the company, maintenance of
robust liquidity, and improvement in the fleet profile are viewed
as positive rating drivers. Fitch will also assess AerCap's
ability to effectively manage the average age and composition of
its fleet. Positive rating momentum could stall if AerCap runs
into any meaningful integration issues, if dividends or share
repurchase activity are reinstituted before deleveraging plans
are completed, or if there is a material downturn in the aviation
sector, which negatively impacts its business.

Downside risks to AerCap's ratings will be elevated until the
acquisition is fully integrated and leverage is reduced. Negative
rating actions could result from significant integration issues,
loss of key airline relationships, deterioration in financial
performance and/or operating cash flows, higher than expected
repossession activity and/or difficulty re-leasing aircraft at
economical rates. Longer term, aggressive capital management, a
reduction in available liquidity or inability to maintain or
improve the fleet profile could also lead to negative rating
pressure.

Aviation Capital Group Corp.:

KEY RATING DRIVERS -- IDR and Senior Debt

The affirmation of the IDR and unsecured debt ratings at 'BBB-'
and the Stable Outlook reflect ACG's solid franchise, attractive
aircraft portfolio, consistent operating cash flow generation,
solid liquidity, diverse funding profile and Fitch's assessment
of the ownership by and strategic relationship with Pacific Life
Insurance Company (PLIC, IDR rated 'A') and its parent Pacific
LifeCorp (PLC, IDR rated 'A-'). Fitch also views the recent
improvement in ACG's unsecured funding profile and unencumbered
asset coverage favorably, as they provide additional financial
flexibility.

Lease revenues grew 11.5% in 2013 to US$736 million compared to
US$660 million in 2012, reflecting ACG's continued portfolio
growth offset by a modest decline in net margin, which fell to
7.2% in 2013 compared to 7.3% in 2012. Operating performance has
remained relatively flat over the same period, as pre-tax
earnings increased 3.3% to US$62 million in 2013 compared to
US$60 million in 2012, reflecting increased maintenance and
operating costs resulting from portfolio growth. Net income of
US$76 million, on an adjusted basis, was 22.6% higher in 2013
compared to US$62 million in 2012. Net income in 2012 accounts
for a one-time basis adjustment to ACG's deferred tax asset
valuation allowance related to aircraft depreciation, which
reduced the provisions for income taxes during the year.
Including this adjustment, reported net income would have been
US$119 million in 2012. Fitch expects medium- to long-term
profitability to improve along with net margins as the new
aircraft portfolio seasons.

ACG's aircraft portfolio remains attractive and broadly used by
airlines, which provides stable cash flow generation that
minimizes the impact of market volatility throughout economic and
market cycles. The portfolio is composed predominately of B737
and A320 families, with a weighted average age of around six
years, as of March 31, 2014. Approximately 76% of the portfolio
is younger than 10 years, by net book value. Currently, ACG has
133 aircraft on order with deliveries scheduled through 2021.
Given ACG's fleet strategy of investing in young, primarily
narrowbody aircraft with broad customer appeal, Fitch expects the
portfolio will remain relatively consistent over the near- to
medium-term.

Fitch views ACG's liquidity profile as solid, and the company is
well positioned to support ongoing aircraft funding requirements.
As of March 31, 2014, the company had over $1.1 billion of
liquidity, which included US$39.2 million of unrestricted cash
balances and US$1.1 billion of available borrowing capacity under
its credit facilities provided by a syndicate of global banks. In
addition, ACG generates between US$300 million to US$500 million
of annual cash flows from operations, which is also used to
support portfolio growth and to manage debt maturities. The debt
profile is well laddered with the next maturity coming due in
2016.

In addition, ACG has made significant progress in diversifying
its capital structure and broadening its capital markets access
and other funding sources. In third quarter 2013, ACG completed a
three-year, US$600 million 144A bond transaction at attractive
terms. With the recent issuance, ACG's unsecured debt has grown
to nearly 56% of total debt, which is viewed favorably by Fitch.
The ratings of the senior unsecured notes are equalized with the
IDR of ACG, reflecting sufficient level of available collateral
to support average recoveries in a stressed scenario.

Balance sheet leverage, measured by total debt-to-equity,
improved to 3.5x as of March 31, 2014 from a range of 4.0-4.5x
over the last several years, as a result of retained earnings
growth and a capital injection of $150 million by ACG's parent,
PLIC, in March 2014. Fitch expects leverage will remain around
3.5x to 4.0x over the medium term, which is consistent with its
current ratings, as modest retained earnings generation and
amortization of ACG's securitization debt may offset increases in
debt levels to fund new aircraft purchases.

Fitch considers ACG's standalone credit profile to be reflective
of a 'BB+' rating without institutional support. Based on the
'Rating FI Subsidiaries and Holding Companies' criteria, Fitch
views ACG's business as having limited importance to PLC's
overall operations due to limited financial and operating
synergies, as well as lack of common branding. This suggests that
future support may be uncertain, particularly in a stress
scenario. That said, Fitch believes PLC maintains a high level of
commitment to ACG, as evidenced by PLIC's recent capital
injection, as well as the continued ownership of 100% of ACG's
equity, which amounted to US$1.56 billion of invested capital to
date. Consequently, ACG's long-term IDR receives a one-notch
uplift from the standalone rating due to PLIC's direct ownership
and demonstrated financial support.

Rating Sensitivities - IDR and Senior Debt
Positive rating momentum for ACG could be driven by management's
commitment to manage leverage below 3.5x in conjunction with
improved profitability over the medium- to longer-term, while
maintaining an attractive aircraft portfolio, consistent cash
flow generation, sufficient liquidity, and diversity of funding.
Positive rating actions could also be driven by more explicit
forms of parent support from PLIC.

Conversely, negative rating actions could be driven by an
unwillingness or inability of PLIC to provide timely support to
ACG. Significant deterioration in operating performance, a
material decline in operating cash flow generation resulting from
a significant weakening of sector or economic conditions, or a
material increase in balance sheet leverage over and above the
historical range could also result in negative rating actions.

The ratings of the senior unsecured notes are sensitive to
changes in ACG's IDR, as well as the level of unencumbered
balance sheet assets in a stressed scenario, relative to
outstanding debt.

BOC Aviation Pte Ltd:

Key Rating Drivers
The affirmation of BOC Aviation's IDR and senior unsecured debt
rating of 'A-' reflect Fitch's continued expectation of a very
high probability of extraordinary support to BOC Aviation from
its ultimate parent, Bank of China (BOC; 'A', Stable Outlook), if
required. This view is based on BOC Aviation's strategic
importance to and strong links with BOC, which is evident in the
shared brand name, 100% ownership and close board oversight by
BOC, cross-selling potential, forthcoming resources, and strong
reporting links despite the issuer's small size relative to its
parent and their different domiciles.

BOC has committed a standby liquidity line of $2 billion, which
is considerable relative to BOC Aviation's assets of US$10.2
billion at end-December 2013. This is on top of the US$300
million of common equity injection by BOC since it took over BOC
Aviation in 2006. At end-December 2013, BOC Aviation had US$1
billion in drawn committed long-term loan facilities with BOC and
BOC (Hong Kong) Limited.

The aircraft leasing company is one of the few wholly-owned
subsidiaries within the BOC group that reports directly to BOC's
management. Eight of BOC Aviation's 10 board members are BOC
representatives, with a high-ranking officer of BOC appointed as
chairman. These internal arrangements underscore the strategic
importance of BOC Aviation to BOC, even though the former
accounted for only about 0.4% of BOC's consolidated assets.
Cross-selling initiatives center on BOC Aviation assisting BOC in
originating relationships with airlines and aircraft
manufacturers. This supports BOC's aim of diversifying its non-
interest income base and to move into non-commercial banking
businesses.

Fitch views BOC Aviation's standalone financial profile without
any institutional support to be reflective of a 'BB+' rating.
This reflects BOC Aviation's consistent track record, young fleet
age, solid lessee quality and an experienced management team. BOC
Aviation has consistently reported one of the highest ROAs among
its rated peers. This is due to its active fleet quality
management, aircraft collections and procurement, as well as low
funding costs. Fitch views as positive BOC Aviation's
demonstrated ability to trade aircraft through the cycle, as
shown by its ability to continually keep the average age of its
portfolio at around four years.

BOC Aviation has a moderately higher appetite for leverage and
reliance on bank borrowings compared to its peers. Changes in
Fitch's view of BOC Aviation's standalone financial profile would
be likely to take into account BOC Aviation's future leverage
appetite, funding diversity and/or risk appetite in terms of
lessee quality and growth ambitions.

Rating Sensitivities
Any perceived changes in BOC's propensity and ability to provide
support would affect BOC Aviation's IDR and senior unsecured debt
rating. Any changes in BOC's IDR would also have a direct impact
on BOC Aviation's IDR. However, a change in BOC Aviation's
standalone risk profile is unlikely to directly impact its IDR,
unless support factors that drive its IDR were to change.

Fitch has affirmed the following ratings:

AerCap Holdings N.V.

-- Long-term IDR at 'BB+'; Rating Outlook Stable.

AerCap Ireland Capital Limited
AerCap Global Aviation Trust
AerCap Aviation Solutions B.V.

-- Senior unsecured debt rating 'BB+'.

International Lease Finance Corp.

-- Long-term IDR at 'BB+', Outlook Stable;
-- $3.9 billion senior secured notes at 'BBB-';
-- Senior unsecured debt at 'BB+';
-- Preferred stock at 'B+'.

Flying Fortress Inc.

-- Senior secured debt at 'BB+'.

Delos Finance SARL

-- Senior secured debt at 'BB+'.

ILFC E-Capital Trust I

-- Preferred stock at 'B+'.

ILFC E-Capital Trust II

-- Preferred stock at 'B+'

AerCap B.V.
AerCap Dutch Aircraft Leasing I B.V.
AerCap Dutch Aircraft leasing IV B.V.
AerCap Dutch Aircraft Leasing VII B.V.
AerCap Engine Leasing Limited
AerCap Ireland Limited
AerCap Partners 767 Limited
AerCap Partners I Limited
AerFunding 1 Limited
AerVenture Leasing 1 Limited
Cielo Funding Limited
Flotlease MSN 973 Limited
Genesis Portfolio Funding 1 Limited
GLS Atlantic Alpha Limited
Harmonic Aircraft Leasing Limited
Harmony Funding BV
Melodic Aircraft Leasing Limited
Parilease / Jasmine Aircraft Leasing Limited
Philharmonic Aircraft Leasing Limited
Rouge Aircraft Leasing Limited
Sapa Aircraft Leasing 2 BV
Sapa Aircraft Leasing BV
Skyfunding II Limited
SkyFunding Limited
Symphonic Aircraft Leasing Limited
Triple Eight Aircraft Leasing Limited
Wahaflot Leasing 3699 (Bermuda) Limited
Westpark 1 Aircraft Leasing Limited
Worldwide Aircraft Leasing Limited

-- Senior secured bank debt at 'BBB-'.

Aviation Capital Group Corp.:

-- Long-term IDR at 'BBB-'; Rating Outlook Stable;
-- Senior unsecured debt rating at 'BBB-'.

BOC Aviation Pte Ltd:

-- Long-term IDR at 'A-', Outlook Stable;
-- Senior unsecured debt rating at 'A-'.

Fitch has assigned ratings to senior secured debt obligations of
the following AER subsidiaries:

AerLift Leasing Jet Limited
Bluesky Aircraft Leasing Limited
CelestialFunding Limited
Cielo Funding II Limited
Limelight Funding Limited
Monophonic Aircraft Leasing Limited
Quadrant MSN 5869 Limited
Renaissance Aircraft Leasing Limited
SoraFunding Limited
Sunflower Leasing Co., Ltd
Tulip Leasing Co., Ltd.
Polyphonic Aircraft Leasing Limited

-- Senior secured bank debt 'BBB-'


DALRADIAN EUROPEAN: S&P Affirms 'BB+' Rating on Class D Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions in Dalradian European CLO I B.V.

Specifically, S&P has:

   -- raised its ratings on the class A2, B, C, and E notes;
   -- affirmed its 'BB+ (sf)' rating on the class D notes; and
   -- withdrawn its 'AAA (sf)' rating on the variable funding
      notes (VFN).

The rating actions follow S&P's review of the transaction's
performance.  S&P has conducted a credit and cash flow analysis
and has applied its relevant criteria.  In S&P's analysis, it
used data from the June 3, 2014 trustee report.

"We subjected the capital structure to a 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 fully repay
the noteholders.  In our analysis, we used the reported portfolio
balance that we considered to be performing (EUR121,811,143), the
current and covenanted weighted-average spreads (3.88% and 2.65%,
respectively), and the weighted-average recovery rates calculated
in line with our corporate collateralized debt obligation (CDO)
criteria.  We applied various cash flow stress scenarios, using
standard default patterns, in conjunction with different interest
rate and currency stress scenarios," S&P said.

Since S&P's July 24, 2012 review, the aggregate collateral
balance has decreased by EUR196.22 million, to EUR121.81 million
from EUR318.03 million, mostly due to the full amortization of
the VFN and the class A1 notes, as well as the partial
amortization of the class A2 and E notes.

In addition, according to the transaction documents, once the
reinvestment period ends, the class E notes are redeemed using
20% of the residual interest proceeds.  This redemption occurs
only if interest proceeds are available after payments of
interest due on the rated notes, any amounts due to comply with
the coverage tests, certain uncapped fees and expenses, and all
amounts required to be diverted following a breach of the
reinvestment overcollateralization test (paid in accordance with
the priority of payments).  Since S&P's previous review, the
class E notes have amortized by EUR2.36 million.  In S&P's view,
the amortization of the class A1, A2, E, and VFN notes has
increased the available credit enhancement for all rated classes
of notes.

S&P has also observed that overcollateralization, the
transaction's weighted-average spread, and the weighted-average
recovery rates have all increased over the same period.

Non-euro-denominated assets currently comprise 15.73% of the
total performing assets.  The transaction has currency call
options, which hedge any currency mismatches.  In S&P's opinion,
the documentation for the derivative counterparty does not fully
comply with S&P's current counterparty criteria.  Therefore, in
S&P's cash flow analysis, for ratings above the long-term issuer
credit rating plus one notch on each derivative counterparty, S&P
has considered scenarios where the counterparty does not perform,
and where, as a result, the transaction may be exposed to greater
currency risk.

S&P's analysis indicates that the available credit enhancement
for the class A2, B, C, and E notes is commensurate with higher
ratings than previously assigned.  S&P has therefore raised its
ratings on these classes of notes.

The application of the largest obligor default test--a
supplemental stress test in S&P's corporate CDO criteria--
constrains its rating on the class D notes at 'BB+'.  S&P has
therefore affirmed its 'BB+ (sf)' rating on the class D notes.

S&P has withdrawn its 'AAA (sf)' rating on the VFN as they
redeemed on the June 2014 payment date.

Dalradian European CLO I is a managed cash flow collateralized
loan obligation (CLO) transaction that securitizes loans to
primarily European speculative-grade corporate firms.  The
transaction closed in May 2006 and is managed by Elgin Capital
LLP. The transaction's reinvestment period ended in June 2012.

RATINGS LIST

Class                   Rating
              To                  From

Dalradian European CLO I B.V.
EUR350 Million Floating-Rate Notes

Ratings Raised

A2            AAA (sf)            AA+ (sf)
B             AAA (sf)            AA- (sf)
C             A+ (sf)             A- (sf)
E             B- (sf)             CCC+ (sf)

Rating Affirmed

D             BB+ (sf)

Rating Withdrawn

VFN           NR                  AAA (sf)

NR--Not rated.



===============
P O R T U G A L
===============


BANCO ESPIRITO SANTO: S&P Lowers Counterparty Rating to 'CC'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
counterparty credit rating on Portugal-based Banco Espirito Santo
S.A. (BES) to 'CC' from 'B-'.  The long-term counterparty credit
rating remains on CreditWatch with negative implications, where
it was placed on July 11, 2014.  In addition, S&P placed the 'C'
short-term rating on CreditWatch with negative implications.

S&P also lowered its issue ratings on BES' non-deferrable
subordinated debt and hybrid instruments to 'C' from 'CCC-' and
maintained those ratings on CreditWatch, where they were placed
with negative implications on July 11, 2014.

The rating actions reflect S&P's view of the rating implications
resulting from the recent resolution plan for BES that the Bank
of Portugal announced on Aug. 3, 2014.

On July 30, 2014, BES published its results for the first half of
2014, including EUR4.2 billion of extraordinary provisions and
losses that, S&P believes, were chiefly related to BES' exposure
to -- and links with -- its unrated affiliate, Grupo Espirito
Santo (GES). GES' financial profile had weakened in the light of
factors that resulted in the recent insolvency proceedings which
involved several GES entities.  As a result of reported losses,
BES experienced a substantial deterioration of its solvency
position, which resulted in a breach of minimum regulatory
capital requirements.

Following the July 30 BES results report, the Bank of Portugal
announced on Aug. 3, 2014 that it had started the resolution of
BES. Published statements by the Bank of Portugal indicate to S&P
that BES' general banking activities and many of its assets --
together with almost all customer deposits and other senior
debt -- were transferred to the newly-formed Novo Banco.  S&P
also understands that BES has retained certain meaningful
problematic assets, including its exposures to GES, the
obligations (including guarantees) issued by BES group entities
to third parties in respect of GES entities, and the ownership of
BES' Angolan subsidiary.  The statements from the Bank of
Portugal also indicated to S&P that BES retains the subordinated
debt and hybrid instruments it issued and guaranteed, as well as
its shareholders' equity, and, S&P believes, certain senior
obligations owed to individuals or entities affiliated with BES,
including shareholders with stakes over 2% of BES share capital
and board members.

In light of BES' resolution proceedings, S&P lowered its stand-
alone credit profile (SACP) on BES to 'cc' from 'ccc+' and the
long-term counterparty credit rating on BES to 'CC' from 'B-'.
These actions reflect S&P's view that, according to its criteria,
S&P expects a BES default to be a virtual certainty.  In S&P's
rating action, it has removed the one notch of uplift for
potential government support that was previously incorporated
into the long-term counterparty credit rating on BES.  At
present, S&P considers that government support for BES is
unlikely, based on its conclusion that the resolution proceedings
are intended to isolate loss-making assets in BES and those
losses to be absorbed by holders of regulatory capital and by
certain holders of senior debt affiliated to BES.  According to
S&P's rating definitions, it would only lower the counterparty
credit rating to 'SD' or 'D' if the issuer defaults on financial
obligations that it do not consider as part of its regulatory
capital.

"We also lowered our issue ratings on BES' non-deferrable
subordinated debt and other hybrid instruments to 'C' from 'CCC-'
and maintained them on CreditWatch negative, where they were
placed on July 11, 2014.  The lowering of the ratings reflects,
consistent with our criteria, our view that there is virtual
certainty that these subordinated instruments will not be paid on
their due date and holders will absorb losses resulting from BES'
resolution proceedings.  In this context, we consider the non-
deferrable subordinated debt to be part of regulatory capital,
and therefore we treat it as a hybrid capital instrument,
according to our criteria," S&P said.

S&P's issuer credit rating and debt ratings on BES remain on
CreditWatch negative.  S&P's CreditWatch listing reflects that in
the near term, according to its criteria, it expects a BES
default to be a virtual certainty.  S&P understands that BES has
likely retained some senior obligations.

In this context, S&P considers all of BES' remaining debt --
other than its senior obligations -- to be part of its regulatory
capital base and thus it is considered as hybrid instruments
(including non-deferrable subordinated debt), according to S&P's
criteria. Also according to S&P's criteria, any nonpayment on
BES' instruments that it considers to be part of its regulatory
capital, in the absence of a default on other financial
obligations, would not lead S&P to reflect a default in its
issuer credit rating.


BANCO ESPIRITO INVESTIMENTO: S&P Affirms 'C' Counterparty Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services revised the CreditWatch
implications to developing from negative on its 'B-' long-term
counterparty credit rating on Banco Espirito Santo de
Investimento S.A. (BESI), which has been transferred to Novo
Banco.  At the same time, S&P affirmed the 'C' short-term
counterparty credit rating on BESI.  S&P then suspended both the
long- and short-term ratings on BESI.

S&P also revised the CreditWatch implications to developing from
negative on its 'B-' debt issue rating on senior debt issued
and/or guaranteed by BESI that, together with BESI, were
transferred to Novo Banco.  S&P then suspended the rating.

S&P also revised the CreditWatch implications to developing from
negative on its 'CCC-' debt issue rating on the junior
subordinated debt issued by BESI that, together with BESI, was
transferred to Novo Banco.  S&P then suspended the rating.

The rating actions reflect S&P's view of the rating implications
for the issuer credit rating and issue debt ratings on BESI
resulting from the recent resolution plan for Banco Espirito
Santo S.A. (BES) that the Bank of Portugal announced on Aug. 3,
2014.

On July 30, 2014, BES published its results for the first half of
2014, including EUR4.2 billion of extraordinary provisions and
losses that, S&P believes, were chiefly related to BES' exposure
to -- and links with -- its unrated affiliate, Grupo Espirito
Santo (GES).  GES' financial profile had weakened in the light of
factors that resulted in the recent insolvency proceedings which
involved several GES entities.  As a result of reported losses,
BES experienced a substantial deterioration of its solvency
position, which resulted in a breach of minimum regulatory
capital requirements.

Following the July 30 BES results report, the Bank of Portugal
announced on Aug. 3, 2014 that it had started the resolution of
BES.  Published statements by the Bank of Portugal indicate to
S&P that BES' general banking activities and many of its
assets -- together with almost all customer deposits and other
senior debt -- were transferred to the newly-formed Novo Banco
(not rated).  S&P also understands that BES has retained certain
meaningful problem assets, including its exposures to GES, the
obligations (including guarantees) issued by BES group entities
to third parties in respect of GES entities, and the ownership of
BES' Angolan subsidiary.  The statements from the Bank of
Portugal also indicated to S&P that BES retains the subordinated
debt and hybrid instruments that it issued and guaranteed, as
well as shareholders' equity, and, S&P believes, senior
obligations owed to certain individuals or entities affiliated
with BES, including shareholders with stakes over 2% of BES share
capital and board members.

S&P understands BES' former subsidiary, BESI, is an asset that is
not considered problematic by the regulators and, S&P believes,
has now been transferred, as a going concern entity, to Novo
Banco.

"We have revised the CreditWatch implications to developing from
negative on our 'B-' long-term issuer credit rating on BESI.
Under our criteria, a developing designation is used for unusual
situations in which future events are so unclear that the rating
could be raised or lowered.  In this case, the developing
designation reflects, on the one hand, our view that the credit
profile of BESI could improve because it has been transferred, as
a going concern entity, to Novo Banco, which will receive a
EUR4.9 billion capital injection from the Portuguese Bank
Resolution Fund.  In our view, BESI is now separated from BES'
problematic exposures.  On the other hand, we think it is
possible, given that we still do not have sufficient information,
that new liabilities or risks could emerge for Novo Banco and or
BESI or that those institutions may not be immune from the
potential litigation risk that BES could now face.  We also
believe that BESI's strategic importance within the new Novo
Banco Group could diminish compared with our previous assessment
for BESI under the BES group," S&P said.

"We then suspended our long- and short-term counterparty credit
ratings and issue ratings on BESI.  This is because BESI has been
transferred to Novo Banco and we currently do not have
information of satisfactory quality to perform surveillance of
the rating going forward, including the assessment of BESI's
group status within Novo Banco Group and of Novo Banco's group
credit profile (GCP).  In accordance with our criteria, these
aspects are central in the determination of counterparty credit
ratings on subsidiaries," S&P added.

S&P may reinstate the counterparty credit and issue ratings on
BESI if it was to receive the information it would need to
maintain the ratings and believed that such information would be
supplied on an ongoing basis.  If not, S&P will likely withdraw
the ratings.


* PORTUGAL: Company Insolvencies and Closures Drop in H1 2014
-------------------------------------------------------------
The Portugal News Online reports that the numbers of companies
beginning insolvency proceedings or closing in the first half of
2014 were both well down on the same period of 2013, according to
a recent report by sector specialist Informa D&B.

Between January and June, about 2,534 insolvency proceedings were
started, 17.1 percent fewer than a year earlier, the report said,
citing figures collected for the company's first-half market
barometer, Portugal News Online relays.

"The downward trend was even more accentuated in the second
quarter of the year, with 21.6 percent fewer entities entering an
insolvency process," the company, as cited by Portugal News
Online, said. In the first quarter, the year-on-year drop had
been 12.6 percent.

As for company closures, in the second quarter these were down
11.8 percent, while in the first quarter they were down 17.7
percent, relates Portugal News Online.



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


HIDROELECTRICA: Repays EUR30 Million Loan to RBS Bank
-----------------------------------------------------
Andrei Chirileasa at Romania-Insider.com reports that
Hidroelectrica SA, currently insolvent, closed a EUR30 million
credit line from RBS Bank at the end of July.

This is the fifth large loan that the company closed in the last
five months, the report relates.  The company has repaid
EUR240 million to Alpha Bank, Banca Transilvania, EBRD and
Citibank since March 31, Romania-Insider.com says.

According to the report, Hidroelectrica will also repay a
EUR60 million loan that reaches maturity in November this year.
Currently, the company's loans amount to EUR204 million, compared
to EUR841 million in June 2012, when Hidroelectrica first entered
insolvency.

Romania-Insider.com says the company managed to repay its debt
thanks to higher cash inflows in the first six months of this
year, which allowed it even to set aside some EUR79 million in
bank deposits. Hidroelectrica made a gross profit of EUR114
million in the first half of this year.

The company is fighting in court to get out of the insolvency
procedure and hopes to launch an initial public offering (IPO)
next year on the Bucharest Stock Exchange (BVB), Romania-
Insider.com adds.

As reported by The Troubled Company Reporter-Europe on May 30,
2014, Reuters related that Remus Borza, Hidroelectrica's manager,
said the company will likely exit insolvency in May or June 2015,
then carry out a stock market listing in the second half of that
year.  The company was first forced into insolvency in 2012 by a
severe drought and a string of loss-making contracts, under which
it sold the bulk of its output below market prices, causing
losses of US$1.4 billion over six years, Reuters disclosed.

Hidroelectrica is Romania's largest power producer.



=============
U K R A I N E
=============


METINVEST BV: Will Meet Payments on Eurobonds, CEO Says
-------------------------------------------------------
Krystof Chamonikolas and Daria Marchak at Bloomberg News report
that Metinvest B.V. Chief Executive Officer Yuriy Ryzhenkov said
the company will meet payments on its 2015 and 2018 Eurobonds
with cash or additional borrowing and would only consider debt
restructuring in an "extreme case".

According to Bloomberg, Ukrainian businesses are being punished
by bond investors after restructuring plans by Mriya Agro Holding
Plc sparked an exodus from the market.

"Everything depends on how the military conflict will develop,"
Bloomberg quotes Oleksandr Parashchiy, head of research at
Concorde Capital investment company, as saying.  "If the
situation stabilizes in the next half a year, this could also
help Ukrainian companies' refinance their bonds."

Metinvest B.V. is a Ukraine-based holding company of mining and
steel assets.

                         *     *     *

As reported by the Troubled Company Reporter-Europe on Aug. 5,
2014, Fitch Ratings affirmed Metinvest B.V.'s Long-term foreign
currency Issuer Default Rating (IDR) at 'CCC'.  The senior
unsecured rating on the company's 2015 and 2018 eurobonds has
also been affirmed at 'CCC'/'RR4', according to Fitch.


UKRAINE: EU Sanctions Against Russia Hit Various Business Sectors
-----------------------------------------------------------------
Kateryna Choursina, Daryna Krasnolutska and James M. Gomez at
Bloomberg News report that as Ukraine, the former Soviet
republic, enters a ninth month of war and political turbulence,
executives across the country of 43 million people are struggling
to keep their companies afloat as capital from abroad dries up,
markets sink, sanctions against Russia threaten to spill over the
embattled border and the country remains Europe's riskiest place
to do business.

The government in Kiev, about 600 kilometers (370 miles) from the
conflict in the east, is already saddled with a legacy of
corruption and cronyism and mired in the deepest recession on the
continent, Bloomberg discloses.  The effect of the contraction is
spreading across society, damping retail and real estate sales as
well as construction and infrastructure upgrades, a staple of
industrial growth, Bloomberg relays.

"The war is demolishing the domestic market," Bloomberg quotes
Alexander Valchyshen, head of research at Investment Capital
Ukraine, as saying in an Aug. 5 e-mail.  "In other words, sectors
that cater to domestic consumers, including businesses, are
suffering the most."

The country's economy shrank 4.7% in the second quarter from a
year ago, the biggest contraction since 2009, Bloomberg notes.

According to Bloomberg, analysts including Elena Bilan at
Kiev-based Dragon Capital, said that from steelmakers, such as
billionaire Rinat Akhmetov's Metinvest BV, to food producers such
as UkrLandFarming Plc, the country's largest agricultural
company, industrial companies are taking the brunt of the
conflict and EU sanctions against Russia.



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


CABER LIMITED: Directors Banned For 9 Years
-------------------------------------------
The directors of a holding company which went into voluntary
liquidation owing GBP222,274 have been disqualified for a
combined nine years from acting as directors for trying to
disadvantage creditors by disposing of an asset that ought to
have been included in the liquidation.

The disqualifications follow an investigation by the Insolvency
Service.

William Paul Downes, 59 years old, and Michael Downes, were
directors of Caber Limited which traded from Liverpool and went
into liquidation on May 18, 2012.

On July 22 and July 23, 2014 respectively, WP and M Downes both
gave undertakings to the Secretary of State for Business,
Innovation & Skills not to act as a director, manage or in any
way control a company for a period of 6-1/2 years from July 22,
2014 and 2-1/2 years from July 23, 2014.

Commenting on the disqualifications Sue MacLeod, Chief
Investigator of Insolvent Investigations, Midlands & West at the
Insolvency Service, said:

"Directors who make false statements in the liquidation or who
put assets beyond the reach of company creditors will be
investigated, and removed from the business environment".

The investigation found that during the liquidation process Mr. W
P Downes submitted two statements of affairs which disclosed that
a book debt of GBP250,000 was due to the company.

The liquidator took steps to recover this book debt which was
disputed and applied to court for it to be included in the
liquidation. Mr. WP Downes gave evidence at the court hearing in
support of the liquidator's claim, and on 25 September 2012 the
court ruled that the asset belonged in the liquidation.

However, two days after the court hearing and contrary to his
evidence in court, Mr. WP Downes informed the liquidator that the
book debt had in fact been assigned to another company for GBP100
in February 2012.

The liquidator issued further court proceedings, seeking an order
that the assignment of the book debt had no effect or
alternatively that the transaction constituted a transaction at
an undervalue. In May 2013, a commercial settlement was agreed
and Caber Limited retained the book debt after paying the other
company GBP5,000. In total Caber Limited recovered only GBP28,335

As a result of the legal actions the liquidator has reported that
Caber Limited's creditors will not receive a dividend.


CARBON GREEN: Placed Into Provisional Liquidation
-------------------------------------------------
Carbon credit companies Carbon Green Capital LLP and Agora
Capital Ltd have been ordered into provisional liquidation
following petitions presented by the Secretary of State for
Business, Innovation & Skills to wind up the companies in the
public interest.

The petitions were issued following confidential enquiries
carried out by Company Investigations, part of the Insolvency
Service, under section 447 of the Companies Act 1985, as amended.

The Official Receiver has been appointed by the Court as
provisional liquidator of both companies on the application of
the Secretary of State. The role of the Official Receiver is to
protect the assets and financial records of the companies pending
determination of the petitions.

The provisional liquidator also has the power to investigate the
affairs of the companies insofar as it is necessary to protect
their assets including any third party or trust monies or assets
in the possession of or under the control of the companies.

Company Investigations Supervisor Chris Mayhew said:

"As the matter is before the Court no further information will be
made available about the case until the petitions are determined.
The petitions are listed for hearing on Oct. 22, 2014".

"If you have invested with either company or are approached by
firms purporting to have been appointed to deal with your
investment, such as Fredric & Formby or Fredericks, The Official
Receiver who has today been appointed by the Court as provisional
liquidator of Carbon Green Capital LLP and Agora Capital Ltd,
will be pleased to receive the details".

The petitions to wind up the companies were presented in the High
Court on July 25, 2014.


CASH STORE: Goes Into Administration After Three Years of Trading
-----------------------------------------------------------------
Scunthorpe Telegraph reports that The Cash Store in the UK has
gone into administration after more than three years of trading.

The closure of the local branch of The Cash Store also means the
loss of three jobs, according to Scunthorpe Telegraph.

The report notes that the 27-strong chain was said to be loss-
making and having to rely on funding from its parent Canadian
company.

Chad Griffin -- chad.griffin@fticonsulting.com -- and Simon
Kirkhope -- simon.kirkhope@fticonsulting.com -- from FTI
Consulting LLP were appointed joint administrators at a hearing
at the High Court of Justice in Manchester.

"Cash Store is owned by its ultimate Canadian parent company The
Cash Store Financial Services Inc. The parent company made a
decision to cease funding the UK operations and, to ensure that
the affairs of the business were dealt with in an orderly manner,
applied for an administration order on July 21.  All efforts were
made to seek a buyer for the business but the company had been
loss-making for some time," the report quoted Mr. Griffin as
saying.

"Our team is working with the employees to support them in their
applications for statutory entitlements," Mr. Griffin said, the
report notes.

Mr. Griffin said the loans had been sold to a third party and
customers in Scunthorpe would be contacted in due course by the
purchaser with information on how accounts would be handled, the
report discloses.

In April this year, another Scunthorpe town centre pawnbroker,
Herbert Brown, was saved from administration after its parent
group Albermarle & Bond went bust, the report adds.


CITY TV: Goes Into Administration
---------------------------------
BBC News reports that Birmingham's City TV has gone into
administration, without having broadcast any programs.

The company was one of several around the UK awarded a license to
provide local digital television programs.  Its license was
granted in 2012 and the channel would have served 1.2 million
households in the Birmingham area, the report notes.

It had until November to start broadcasting but did not have
studio premises or equipment, having been unable to secure
sufficient financing, according to BBC News.

Administrator Duff & Phelps said the firm, also known as BLTV,
would work with Ofcom to transfer the license and return funds to
creditors, BBC News relates.

                            BBC Funding

"BLTV was awarded the license for Birmingham local television
following a lengthy competitive process, overseen by Ofcom.
Unfortunately, it would appear that despite having demonstrated a
comprehensive programming proposal, the company was unable to
secure the necessary funding to get the project off the ground,
having been awarded the license," the report quoted Matt Ingram,
joint administrator, as saying.

"We are aware of considerable interest from a number of local
television operators in continuing with the Birmingham area
opportunity and we are already engaging with them, and Ofcom, to
secure a successful transfer of the license," Mr. Ingram said,
the report notes.

Ofcom initially received 57 bids to run the channels in the UK.

The report says that the first of a total of 19 licenses were
awarded to Brighton and Grimsby in September 2012.

As part of the current license fee settlement, the BBC agreed to
contribute up to GBP25 million for the successful bidder to build
the network, the report adds.


EXPRO HOLDINGS: S&P Affirms 'B' Rating on Proposed Term Loan B
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it has affirmed its
'B' issue rating on U.K.-based oilfield services company Expro
Holdings U.K. 3 Ltd.'s proposed term loan B facility due 2021.
The recovery rating of '2' is unchanged.

S&P has also affirmed its 'B' issue rating on the US$250 million
revolving credit facility (RCF) due 2019 to be issued alongside
the term loan B.  The '2' recovery rating is unchanged.

At the same time, S&P affirmed the 'CCC+' issue rating on Expro's
US$1.0 billion mezzanine facility due in 2018.  The '5' recovery
rating is unchanged.

Expro's new subsidiaries will issue the term loan B facility,
which has been upsized to $1,435 million from US$1,160 million.
S&P estimates the recovery rate for the proposed term loan B
facility will be at the lower end of 70%-90% recovery range.

The recovery rating is supported by the sizable cushion of
subordinated mezzanine debt in Expro's pre-IPO capital structure.
Any further increase in the term loan B, or other senior secured
debt, would cause S&P to lower its issue ratings and revise its
recovery ratings down.

The issue and recovery ratings on the proposed senior secured
term loan and RCF are based on preliminary information and are
subject to the successful issuance of these facilities and S&P's
satisfactory review of the final documentation.

"We understand that Expro still intends to use the proceeds of
the proposed debt issuances to repay the $1.1 billion term loan
D, which Expro swapped into senior secured notes.  The proposed
RCF will replace the existing super senior RCF.  We understand
that US$250 million of the additional proceeds relating to the
upsized term loan B will be used to partially pay down the US$1.1
billion mezzanine facility.  It will also replace the US$360
million delayed draw facility, which it was assumed would be
drawn at the time of an IPO and formed part of the originally
proposed transaction," S&P said.

"We understand that Expro still intends to complete this
refinancing in advance of an IPO, which it estimates will take
place in the second half of 2014.  If the IPO is successful, the
proceeds will be used to repay the remaining mezzanine debt,
creating upside to Expro's corporate credit rating.  However, if
we were to raise Expro's corporate credit rating following this
significant debt reduction, we would likely revise the recovery
rating on the senior term loan B down to '3' from '2', given the
absence of subordinated debt in the capital structure after an
IPO.  Effectively, this means that our issue rating on the term
loan B may not move upward in line with the corporate credit
rating," S&P added.


GOLDSTAR LAW: High Court Enters Windup Order
--------------------------------------------
Goldstar Law Limited, a Nottinghamshire company which sold legal
products meant to protect clients' assets through wills, trusts
and lasting powers of attorney, has been wound up in the High
Court for failing to provide the services it claimed it could.

The winding up follows an investigation by the Insolvency
Service.

The court heard that the company approached prospective clients
by cold calling, followed by a home visit conducted by one of its
sales staff.

The company received some GBP400,000 in the form of advance
payments made by clients, but had provided very little in return.

Clients were required to pay in full and in advance for the legal
products, the price of which ranged from GBP95 for a single will
to GBP3,834 for a package of wills, trusts and lasting powers of
attorney. The company informed clients that they would receive
their legal products within 3 to 8 weeks.

Commenting on the case, Colin Cronin, an Investigation Supervisor
with the Insolvency Service, said:  "Goldstar Law limited used
forceful and misleading sales practices to obtain upfront fees,
from a predominantly elderly clientele, for legal products which
it then failed to deliver.

"The Insolvency Service will take firm action against companies
which operate in this manner."

The investigation found that as of Oct. 22, 2013, some 15 months
after the company started operating, it had failed to provide
legal products to the overwhelming majority of its customers and
that there was no realistic prospect of the position improving.

Despite having taken instructions and payment from 132 clients,
it had finalised just 5 wills, 11 lasting powers of attorney and
4 estate preservation trusts. From the outset of its trading, the
company had accepted clients even though it had no firm
arrangements in place to produce and register the legal products.

The court also heard that the company operated with a lack of
commercial probity in that it had sold "estate preservation
trusts" claiming these would enable clients to avoid their assets
being used to pay for care home fees, without properly informing
customers of the risk of local authorities challenging these
arrangements.


PUNCH TAVERNS: Dando to Get Bonus if Debt Restructuring is OK'd
---------------------------------------------------------------
Nathalie Thomas at The Telegraph reports that Punch Taverns'
finance director is in line for a bonus worth up to GBP275,000 as
a reward for concluding the pubs group's tortuous debt
restructuring, which will enter the final furlong this week when
proposals for a debt-for-equity swap are formally launched.

Steve Dando, who has been with the leased-pubs company since
2003, the last three as finance director, has been told he may be
granted a one-off award worth up to 100% of his basic salary if
the latest rescue plans, to reduce the company's debt pile by
GBP600 million, finally cross the finishing line, The Telegraph
relates.  The award will vest in three years if the share price
also performs ahead of target, The Telegraph says.

Details of Mr. Dando's bonus are detailed in Punch's annual
report, which states that the remuneration committee "may decide
to grant a further one-off award of up to 100% of salary but only
following a successful conclusion to the current capital
restructuring project", The Telegraph notes.

Punch Taverns Plc is a U.K. pub operator.


                            *********

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

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

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


                            *********


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

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

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

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

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

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


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