TCREUR_Public/140911.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

         Thursday, September 11, 2014, Vol. 15, No. 180



DELACHAUX S.A.: S&P Assigns 'B+' CCR; Outlook Stable


UNICREDIT: Fitch Assigns 'BB-' Rating to 6.75% Tier 1 Notes


LIEPAJAS METALURGS: KVV Group Bid to Acquire Biz for EUR107-Mil.


AVOCA CLO II: Moody's Affirms 'Caa3' Rating on Class D Notes
E-MAC 2004-II: Fitch Raises Ratings on 7 Note Classes to CCC
VISTAPRINT NV: Moody's Assigns 'Ba3' Corporate Family Rating
X5 RETAIL: Moody's Revises 'B2' CFR Outlook to Positive


IG SEISMIC: S&P Revises Outlook to Stable & Affirms 'B' CCR
NEFTSERVICEHOLDING LLC: Moody's Assigns 'B1' Corp. Family Rating


T-2: Awaits Decision on Commencement of Bankruptcy Proceedings


YUKSEL INSAAT: Moody's Withdraws 'Caa2' Corporate Family Rating


AKTIV BANK: Declared Insolvent by Central Bank

U N I T E D   K I N G D O M

BRADFORD BULLS: Owes Creditors GBP2MM a Year After Liquidation
IRON MOUNTAIN: Moody's Assigns Ba1 Rating to New GBP350MM Notes
IRON MOUNTAIN: S&P Assigns 'B+' Rating to GBP350MM Sr. Notes
JOHNSTON PRESS: Moody's Assigns 'B3' Corporate Family Rating
OATLANDS: In Administration; Business as Usual

SCOMI OILTOOLS: In Liquidation, Total Debts Reach GBP14.68 Mil.


* MENA Sovereign Ratings Remain Wide But Stable, Fitch Says



DELACHAUX S.A.: S&P Assigns 'B+' CCR; Outlook Stable
Standard & Poor's Ratings Services assigned its 'B+' long-term
corporate credit rating to Delachaux S.A., a France-based
manufacturer of rail-fastening equipment.  The outlook is stable.

At the same time, S&P assigned its 'B+' long-term issue rating to
Delachaux's proposed EUR765 million senior secured term loan
maturing in 2021, consisting of a term loan and a credit facility
issued by Sodelho SAS.  The recovery rating is '4', indicating
S&P's expectation of average (30%-50%) recovery in the event of a
payment default.

The ratings on Delachaux are constrained by S&P's view of the
company's high leverage.  S&P believes that over the next two or
three years, Delachaux's Standard & Poor's-adjusted debt-to-
EBITDA ratio will remain between 7x and 8x, which S&P classifies
as "highly leveraged" according to its criteria.  Following the
planned refinancing, S&P expects the company's debt to consist of
a senior secured bank loan of EUR688 million, maturing in 2021,
and a EUR170 million subordinated non-cash-paying preferred
equity certificate (PEC) that S&P treats as debt under its
criteria, down from EUR437 million before the refinancing.  If
the company is unable to refinance its debt, S&P's adjusted
leverage ratios would be roughly unchanged because the current
capital structure also consists of a term loan and PECs, but with
a different split.  S&P views the refinancing as moderately
aggressive, since the amount of secured debt will increase on
account of structurally subordinated debt.  The existing term
loan is not due until 2018.

S&P forecasts that its ratio of adjusted funds from operations
(FFO) to debt for Delachaux will stay slightly higher than 7% and
debt to EBITDA at 7x-8x for the next three years, consistent with
the 'B+' rating.  S&P believes Delachaux's low capital intensity
supports its ability to generate robust operating cash flow.
Excluding the PEC, S&P anticipates that, in 2014, adjusted FFO to
debt would be about 9%, and that adjusted debt to EBITDA would be
just below 6x.

S&P views the company's business risk profile as "satisfactory,"
reflecting Delachaux's leading global positions in its niche
markets of rail-fastening and welding systems, which accounted
for 59% of its sales in 2013.  Delachaux also produces conductor
systems through its subsidiary Conductix (30% of sales), as well
as chromium metal (11%).  S&P also notes a high share of revenues
related to maintenance and repair in the rail segment, which
represents about 60% of that segment's revenue and supports the
group's overall revenue stability.

Delachaux's profitability underpins our business risk profile
assessment, given the relatively low volatility of profits and a
stable EBITDA margin that averaged 14%-15% over the past three
years.  In S&P's view, the margin's resilience is backed by the
group's large variable cost base, which accounts for about 70% of
total costs.

Additional supportive factors include the group's broad
geographic diversification, with Europe accounting for
approximately 40% of sales in 2013 (10% of this in France), North
America 25%, and Asia-Pacific 27%.

At the same time, S&P notes the group's limited scale, with
EUR129 million in EBITDA generated in 2013, and its concentration
on the rail segment.  In addition, chromium metal production
depends on volatile raw material prices, which can lead to
working capital outflows if those prices rise.  S&P also notes a
contraction in sales over 2013, which was due to lower demand.
The group's revenue declined by 6% (or by about 3% on a like-for-
like basis) in 2013, after a 6% decrease in sales at the rail
division and an 18% drop at the metal division, chiefly because
of a fall in raw material prices.

S&P sees reputation risk as one of the key threats for Delachaux,
given that safety is a critical feature for rail products.
However, the group does not currently face any significant claim
related to this and has a strong historical track record.

The stable outlook reflects S&P's expectation that Delachaux will
maintain an adjusted debt-to-EBITDA ratio of about 7x-8x, and
adjusted FFO to debt higher than 6%.  The stable outlook also
reflects S&P's anticipation that the company will demonstrate a
steady operating performance in 2014, after a slight decline in
reported revenue and net income for 2013.

A positive rating action is unlikely at present, given the
company's "highly leveraged" financial risk profile.

S&P could lower the rating on Delachaux in the event of severe
underperformance compared with S&P's base case that resulted in a
significant deterioration of credit metrics.  If the company were
to use the proceeds from the ongoing refinancing for anything
other than reducing the amount of PECs, this would create
pressure on the rating.  A larger-than-expected dividend or other
shareholder distribution, leading to an increase in adjusted
debt, could also trigger a downgrade.


UNICREDIT: Fitch Assigns 'BB-' Rating to 6.75% Tier 1 Notes
Fitch Ratings has assigned UniCredit's (BBB+/Negative/F2/bbb+)
EUR1 billion 6.75% Tier 1 capital notes a 'BB-' final rating.

The rating is in line with the expected rating assigned on
Aug. 28, 2014.


The notes are CRD IV-compliant, deeply subordinated additional
Tier 1 fixed-rate resettable debt securities, with a call option
after seven years.  The notes are subject to write-down if
UniCredit's consolidated or unconsolidated common equity tier 1
(CET1) ratio falls below 5.125% (end-1H14 consolidated CET1 ratio
was 10.12% on a fully-loaded basis), and coupon payments may be
cancelled at the full discretion of the issuer.

In accordance with Fitch's criteria for 'Assessing and Rating
Bank Subordinated and Hybrid Securities', the rating of the notes
is notched off UniCredit's creditworthiness as represented by its
Viability Rating (VR), currently at 'bbb+'.  The notching
reflects the notes' higher expected loss severity relative to
senior unsecured creditors (two notches) and higher non-
performance risk (three notches).

The 5.125% trigger only refers to a write-down of the notes and
Fitch believes that the Italian regulator would demand coupon
deferral well before UniCredit hits the 5.125% threshold.

Fitch has assigned 50% equity credit to the securities.  This
reflects the agency's view that the 5.125% trigger is a low
threshold and not so distant to the bank's non-viability, which
limits the instrument's "going concern" characteristics.  It also
reflects the notes' full coupon flexibility, their permanent
nature and the subordination to all senior creditors.


As the notes are notched from UniCredit's VR, the rating of the
notes is broadly sensitive to the same factors as those that
would affect UniCredit's VR.  The notes' rating is also sensitive
to any change in notching that could arise if Fitch changes its
assessment of the probability of the notes' non-performance risk
relative to the risk captured in UniCredit's VR.


LIEPAJAS METALURGS: KVV Group Bid to Acquire Biz for EUR107-Mil.
Aija Braslina at Reuters reports that Ukraine's KVV Group has
offered to buy Latvia's insolvent steelmaker Liepajas Metalurgs
for EUR107 million (US$138 million).

Liepajas Metalurgs, the only producer of rolled steel in the
Baltic countries, filed for bankruptcy last year, blaming weak
demand in Europe, Reuters recounts.

According to Reuters, Haralds Velmers, the insolvency
administrator of Liepajas Metalurgs, said in a statement that KVV
Group has provided a clear plan for re-launching the plant's

KVV Group is going to pay the sum over 10 years, Reuters

Latvia's government, which had to repay EUR74 million under a
loan guarantee to Italian bank UniCredit after the company could
not cover its liabilities, has welcomed the offer, Reuters

                   About Liepajas Metalurgs

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


AVOCA CLO II: Moody's Affirms 'Caa3' Rating on Class D Notes
Moody's Investors Service announced that it has upgraded the
ratings on the following notes issued by Avoca CLO II B.V.:

EUR27 million Class B Senior Secured Deferrable Floating Rate
Notes due 2020, Upgraded to Aa1 (sf); previously on Oct 22, 2013
Upgraded to A2 (sf)

Moody's downgraded the ratings on the following notes issued by
Avoca CLO II B.V.:

EUR15.7 million Class C-1 Senior Secured Deferrable Floating
Rate Notes due 2020, Downgraded to B3 (sf); previously on Oct
22, 2013 Upgraded to Ba3 (sf)

EUR7.5 million Class C-2 Senior Secured Deferrable Fixed Rate
Notes due 2020, Downgraded to B3 (sf); previously on Oct 22,
2013 Upgraded to Ba3 (sf)

Moody's also affirmed the ratings on the following notes issued
by Avoca CLO II B.V.:

EUR21 million (currently EUR15M outstanding) Class A-2 Senior
Secured Floating Rate Notes due 2020, Affirmed Aaa (sf);
previously on Oct 22, 2013 Upgraded to Aaa (sf)

EUR5 million Class D Senior Secured Deferrable Floating Rate
Notes due 2020, Affirmed Caa3 (sf); previously on Oct 22, 2013
Affirmed Caa3 (sf)

Avoca CLO II B.V., issued in November 2004, is a Collateralised
Loan Obligation ("CLO") backed by a portfolio of high yield
senior secured European and US loans, managed by Avoca Capital
Holdings Limited. This transaction ended its reinvestment period
in January 2010.

Ratings Rationale

According to Moody's, the upgrade of the notes is primarily a
result of continued deleveraging of the Class A notes and
subsequent increase in the overcollateralization (the "OC
ratios"). Moody's notes that as of the July 2014 payment date
report, the Class A1 notes have repaid in full and the class A2
notes have amortized by approximately EUR6 million (or 29% of its
original balance). As a result of this deleveraging, the OC
ratios of the senior notes have significantly increased. As per
the latest trustee report dated July 2014, the Class A and Class
B OC ratios are 457.48% and 163.25%, respectively, versus January
2014 levels of 164.29% and 125.19%.

The downgrade of the Class C notes results primarily from a
decline in a number of key portfolio metrics. The credit quality
of the pool has worsened as reflected in the average credit
rating of the portfolio (measured by the weighted average rating
factor, or WARF). As per the July 2014 trustee report, the WARF
was 3092 compared to 2873 in August 2013. Over the same period,
securities rated Caa1 or lower by Moody's, increased from 2.7% to
4.4%, the reported diversity score reduced from 13.63 to 9.45 and
the weighted average spread decreased from 3.90% to 3.58%. The
defaulted par, as percentage of the total par, has also increased
which has lead to a modest decrease in the Class C OC ratio over
the last year. As of the July 2014 trustee report, the Class C OC
ratios was 105.14%, versus August 2013 level of 106.34%.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base
case, Moody's analyzed the underlying collateral pool as having a
performing par and principal proceeds balance of approximately
EUR64.3 million, defaulted par of EUR12.1 million, a weighted
average default probability of 19.8% (consistent with a WARF of
3475 with a weighted average life of 2.75 years), a weighted
average recovery rate upon default of 50% for a Aaa liability
target rating, a diversity score of 9 and a weighted average
spread of 3.58%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool. For a Aaa liability target rating,
Moody's assumed that 100% of the portfolio exposed to senior
secured corporate assets would recover 50% upon default. In each
case, historical and market performance and a collateral
manager's latitude to trade collateral are also relevant factors.
Moody's incorporates these default and recovery characteristics
of the collateral pool into its cash flow model analysis,
subjecting them to stresses as a function of the target rating of
each CLO liability it is analyzing.

Methodology Underlying the Rating Action:

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

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

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed a lower credit quality in the portfolio to
address refinancing risk. Loans to European corporates rated B3
or lower and maturing between 2014 and 2015 make up approximately
9.45% of the portfolio, which could make refinancing difficult.
Moody's ran a model in which it raised the base case WARF to 3738
by forcing ratings on 50% of the refinancing exposures to Ca; the
model generated outputs that were within one notch of the base-
case results.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
note, in light of 1) uncertainty about credit conditions in the
general economy and 2) the concentration of lowly- rated debt
maturing between 2014 and 2015, which may create challenges for
issuers to refinance. CLO notes' performance may also be impacted
either positively or negatively by 1) the manager's investment
strategy and behavior and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties due to because of embedded ambiguities.

Additional uncertainty about performance is due to the following:

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

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

3) Around 40% of the collateral pool consists of debt obligations
whose credit quality Moody's has been assessed by using credit

4) Lack of portfolio granularity: The performance of the
portfolio depends to a large extent on the credit conditions of a
few large obligors, especially when they default. Because of the
deal's low diversity score and lack of granularity, Moody's
supplemented its typical Binomial Expansion Technique analysis
with a simulated default distribution using Moody's CDOROMTM

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

E-MAC 2004-II: Fitch Raises Ratings on 7 Note Classes to CCC
Fitch Ratings has upgraded the class E notes of E-MAC 2004-II,
2005-I, 2005-III, 2006-II, 2006-III, 2007-I, and 2007-III, seven
Dutch prime RMBS transactions comprising loans originated
predominantly by GMAC.

The rating actions follow those taken on August 20, 2014 and are
a result of a further review of the transaction documentation in
relation to the redemption of the class E notes of the E-MAC NL
series.  All other factors taken into consideration in the last
review of the ratings are still valid and relevant and for this
reason, rating actions are only being taken on the
uncollateralized class E notes.


Redemption of Uncollateralized Tranches

The class E notes in E-MAC 2004-II, 2005-I, 2005-III, 2006-II,
2007-I and 2007-III are uncollateralized tranches that were used
at transaction close to establish the respective reserve funds.
The repayment of the class E principal ranks at the junior end of
the waterfall after the replenishment of the respective reserve
funds and payments of subordinated extension interest.  However,
according to the transaction documentation, funds released from
the reserve at final maturity can only be used for the redemption
of the class E notes, bypassing the unpaid subordinated extension
interest deficiency ledger.

The more seasoned transactions in the series (EMAC 2004-II, 2005-
I and 2005-III) feature non-amortizing reserve funds which are
equal to the outstanding class E balances, while the latter
deals' reserves will amortize to a target amount, subject to
certain triggers being met.  The amortization of the reserve
funds of EMAC 2006-II, 2006-III, 2007-I and 2007-III has led to
the pay down of their class E notes by 54%, 59%, 55% and 62% of
their initial balances.

The reserve fund for each of the 2006 and 2007 vintage
transactions is larger than the current class E note balance.
This provides an additional cushion to cover for potential losses
arising from the sale of properties in addition to the excess
spread generated by the structures.  Consequently, higher
recovery estimates (RE) of 90% have been assigned to the class E
notes of EMAC 2006-II, 2006-III, 2007-I and 2007-III.

Reserve funds remain at their targets for all transactions except
E-MAC 2007-I, which has been drawn as a result of noticeably
higher levels of loan enforcements and losses in the prior
quarter.  Given the limited loss expectations in these
transactions and the stabilized Dutch housing market, Fitch does
not expect reserve fund drawings across the series in the coming
periods.  The replenishment of the reserve fund for E-MAC 2007-I
is expected on the upcoming payment dates using available excess
spread.  Consequently, each of the class E notes has been
upgraded to 'CCCsf'.


If arrears and associated foreclosures and losses exceed Fitch's
expectations, the class E notes could be susceptible to

The rating actions are as follows:

E-MAC 2004-II:
Class E (XS0207264077): upgraded to 'CCCsf' from 'CCsf', RE 75%

E-MAC 2005-I
Class E (XS0216707314): upgraded to 'CCCsf' from 'CCsf', RE 75%

E-MAC 2005-III
Class E (XS0236787056): upgraded to 'CCCsf' from 'CCsf', RE 75%

E-MAC 2006-II
Class E (XS0256040162): upgraded to 'CCCsf' from 'CCsf', RE 90%

E-MAC 2006-III
Class E (XS0275099322): upgraded to 'CCCsf' from 'CCsf', RE 90%

E-MAC 2007-I
Class E (XS0292260675): upgraded to 'CCCsf' from 'CCsf', RE 90%

E-MAC 2007-III
Class E (XS0307683531): upgraded to 'CCCsf' from 'CCsf', RE 90%

VISTAPRINT NV: Moody's Assigns 'Ba3' Corporate Family Rating
Moody's Investors Service assigned a Ba3 corporate family rating
to Vistaprint N.V. in conjunction with the company launching a
US$1.1 billion debt financing, comprised of an US$850 million
bank credit facility, rated Ba2 (US$690 million revolving
facility and US$160 million Term Loan A), and a US$250 million
senior unsecured notes issue, rated B2. Vistaprint was also
assigned a Ba3-PD probability of default rating, a speculative
grade liquidity rating of SGL-2 (indicating good liquidity), and
a stable ratings outlook. This is the first time Moody's has
rated Vistaprint. The following summarizes Moody's ratings and
the rating actions for Vistaprint:

Issuer: Vistaprint N.V.

  Corporate Family Rating: Assigned Ba3

  Probability of Default Rating: Assigned Ba3-PD

  Speculative Grade Liquidity Rating, Assigned SGL-2

  Outlook: Assigned Stable

  Secured Revolving Credit Facility: Assigned Ba2 (LGD3)

  Senior Unsecured Notes: Assigned B2 (LGD5)

The rating presumes that the final structure and documentation of
the transaction conforms with preliminary information provided to

Ratings Rationale

Vistaprint's Ba3 corporate family rating is based primarily on
the company's solid growth prospects stemming from its unique
on-line order entry, design and manufacturing scheduling
capabilities and the significant size of its micro business
target market, and moderate debt-to-EBITDA leverage between
3.0x -- 3.5x. The rating is constrained by a lack of forward
visibility of activity levels, execution risks as the company
revises its go-to-market strategy and stemming from its
acquisition-driven strategy, and risks that demand for key print
products will decline.

Rating Outlook

The outlook is stable because Moody's expects Vistaprint to grow
its top line and operate with modest leverage of between 3.0x to

What Could Change the Rating -- UP

Should Vistaprint be expected to operate with debt-to-EBITDA of
less than 2.75x on a sustained basis with free cash flow to debt
above 10%, and with solid liquidity and industry fundamentals,
positive ratings pressure would develop.

What Could Change the Rating -- DOWN

Downward ratings pressure would develop were Vistaprint's debt-
to-EBITDA leverage expected to exceed 3.5x or free cash flow to
debt fall below 5% (both on a sustained-basis), or should margins
contract or organic revenue growth stagnate.

The principal methodology used in this rating was the Global
Business & Consumer Service Industry Rating Methodology published
in October 2010. Other methodologies used include Loss Given
Default for Speculative-Grade Non-Financial Companies in the
U.S., Canada and EMEA published in June 2009.

Corporate Profile

Vistaprint N.V., incorporated in the Netherlands, with executive
offices in Paris and with annual revenues of $1.2 billion,
provides printed marketing products that are ordered and designed
through an internet interface, to micro businesses in North
America, Europe and Asia.

X5 RETAIL: Moody's Revises 'B2' CFR Outlook to Positive
Moody's Investors Service has changed to positive from stable the
outlook on the B2 corporate family rating (CFR) and the B2-PD
probability of default rating (PDR) of X5 Retail Group N.V.(X5).
Moody's has also affirmed all the ratings.

Ratings Rationale

The rating action reflects X5's consistently improving operating
performance since 4Q 2013 as a result of the company's ongoing
efforts to turnaround the business model and achieve the post-
merger integration of various formats. In particular, for the
first six months of 2014, X5's net retail sales grew by 15%,
primarily supported by improving like-for-like sales growth,
which turned positive in 4Q 2013 (3.9%) and reached 7.2% in H1
2014. Moody's expects that X5's net sales will increase in full-
year 2014 by around 15%, visibly surpassing 2012-13 results (8%
and 9% respectively). The improving sales growth trend, if
sustained, should support the company's deleveraging strategy and
improve its overall financial profile, with adjusted debt/EBITDA
gradually reducing towards 4.5x in 2014-15, from 4.8x as of the
12 months ended June 30, 2014.

In addition, X5 has managed to strengthen its liquidity position,
improving the maturity profile of its debt portfolio. The
company's refinancing requirements of around RUB21 billion
(US$0.6 billion) of its debt due in the next 12 months are fully
covered by increasing cash flows from operations and RUB6 billion
(US$160 million) of cash available as of end-June 2014. X5 will
only rely on external financing to fund its extensive capex
spending, which is however supported by US$1.9 billion of the
existing multi-year undrawn funds under long-term committed

The rating action also takes into account X5's strong business
profile given (1) its large size and leading market position in
the Russian food retail market; (2) the still robust fundamentals
of the Russian food retail market, despite moderating consumption
on the back of slower economic growth and increasing competition;
and (3) the company's low exposure to changes in consumer demand
driven by fashion or product renewal risks, as around 90% of
turnover is generated from food.

Nevertheless, Moody's recognizes execution risks associated with
the extensive business transformation program, while significant
investment requirements for a major rebranding and renovation of
Pyaterochka stores may potentially delay the deleveraging
process. Moody's also acknowledges the ongoing geopolitical
tensions, including a series of sanctions introduced by both
Western countries and Russia. At the same time, Moody's does not
expect that the current sanctions -- including a ban on imports
of a range of products from the EU, the US, Canada and Australia,
introduced by the Russian government in July 2014 -- will have a
material negative impact on X5's operating and financial results.

Rationale for Positive Outlook

The positive outlook on the ratings reflects the potential for
the upgrade of X5's ratings over the next 12-18 months based on
Moody's expectation that the company will deliver on its
operating targets, including sustainable like-for-like sales
growth, which should translate into gradual deleveraging, with
adjusted debt/EBITDA trending towards 4.5x in 2014-15.
Nevertheless an upgrade will remain subject to the macro-economic
factors and the risk that the more severe than currently expected
negative effect of geopolitical tensions could delay the upgrade

What Could Change the Ratings Up/Down

Upward rating pressure could result if X5 were to improve its
financial profile, so that (1) adjusted total debt/EBITDA trends
towards 4.5x and adjusted EBITA/interest coverage increases above
2.0x on a sustained basis; and (2) the company maintains an
adequate liquidity profile.

Downward pressure could be exerted on the ratings if X5's
leverage measured as adjusted debt/EBITDA trends above 5.5x and
adjusted EBITA/interest decreases to below 1.5x, on a sustained
basis. Concerns about the company's liquidity, including access
to its bank facilities and covenants compliance, could put
negative pressure on the rating.

Principal Methodology

The principal methodology used in this rating was Global Retail
Industry published in June 2011.

Domiciled in the Netherlands, X5 Retail Group N.V. is one of the
leading multi-format Russian retailers, operating a chain of food
retail stores. As of June 30, 2014, the company operated 4,779
stores (2.3 million square meters of net selling space), under
the brand names "Pyaterochka", "Perekrestok", "Karusel",
"Perekrestok-Express" and others in more than 62 major Russian
cities. In 2013, X5 generated around US$17 billion of revenues
and US$2 billion of adjusted EBITDA.


IG SEISMIC: S&P Revises Outlook to Stable & Affirms 'B' CCR
Standard & Poor's Ratings Services said it has revised its
outlook on Cyprus-headquartered seismic group IG Seismic Services
PLC (IGSS) and Russia-domiciled core subsidiary GEOTECH Seismic
Services to stable from positive.  At the same time, S&P affirmed
its 'B' long-term corporate credit ratings on IGSS and GEOTECH
Seismic Services.  S&P also lowered its Russia national scale
rating on GEOTECH Seismic Services to 'ruA-' from 'ruA'.

The outlook revision reflects S&P's view that IGSS faces weaker
prospects to increase its profits and deleverage because of the
now higher seismic market uncertainty in Russia, where it

Russia's economy is slowing, and IGSS' key clients -- Russian oil
and gas companies -- have limited access to international capital
markets.  Therefore, S&P don't rule out delays in some long-term
oil and gas projects, pressure on IGSS' prices, or reduced demand
for more complex and more expensive seismic works.  Although S&P
don't expect any reduction in the company's EBITDA or profits in
the near term, it thinks their growth potential is decreasing.

S&P views IGSS' financial risk profile as "highly leveraged," and
continues to see this as the main constraint on the current

"We assess the company's business risk profile as "weak."  The
Russian seismic industry is a niche market with high seasonality
and volatility, in our view.  IGSS is a fairly small company
compared with its customers, which in our view limits its pricing
power.  On the upside, international players have a relatively
limited presence in Russia. IGSS has leading positions in this
small market, with more advanced technologies than local
competitors owing to support from its minority shareholder,
Schlumberger.  Moreover, the share of long-term contracts in the
company's portfolio is increasing, which provides more visibility
on future cash flows," S&P said.

S&P thinks the Russian seismic market will post only modest
growth in the coming years, while the use of more complex and
advanced technologies could decrease.  S&P believes that the EU
and U.S. sanctions on technology transfers in the oil and gas
sector will have only a limited immediate impact directly on
IGSS' credit quality because the company mostly works on
conventional onshore fields that are not covered by the
sanctions.  Moreover, S&P understands that IGSS has renewed its
data processing and interpretation software that Schlumberger
provided before the announcement of sanctions, limiting the
transfer of these technologies.

S&P also thinks that the roughly US$70 million in debt raised by
UCE Syntech Holdings (Syntech) -- ultimately controlled by IGSS'
core shareholder, Mr. Nikolay Levitsky, to buy out the shares in
IGSS it did not already own in early 2014 -- has no recourse to
IGSS. Therefore, S&P do not include this debt in its calculations
of the company's credit metrics and liquidity.

Under S&P's base case, it assumes these:

   -- Only modest growth in the Russian seismic market in the
      next few years, with potentially lower use of more complex
      and advanced technologies that could somewhat limit the
      company's margins and free operating cash flow (FOCF);

   -- No large-scale acquisitions or shareholder distributions
      over the next few years.

   -- Continued prudent working capital management.

   -- Capital expenditures at about $80 million annually.

   -- Exclusion of Syntech-related debt, which S&P regards as
      having no recourse to the company.

Based on these assumptions, S&P arrives at these credit measures:

   -- Debt to EBITDA of about 3x in 2014, gradually declining

   -- Funds from operations (FFO) to debt exceeding 20% over
      S&P's 2014-2015 forecast horizon.

   -- Neutral or slightly positive FOCF.

S&P continues to view GEOTECH Seismic Services as a core
subsidiary of IGSS under its criteria.  S&P considers that it is
an integral part of IGSS' business, generating a large chunk of
total EBITDA.  S&P therefore continues to equalize its rating on
the subsidiary with that on IGSS.

The stable outlook reflects S&P's view that demand and prices in
the Russian seismic market will remain broadly stable over the
next few years.  S&P expects IGSS to maintain generally stable
EBITDA and debt, with slightly positive FOCF and manageable

Over the next couple of years, rating upside could stem from a
strengthening financial risk profile, if IGSS generates robust
positive FOCF and uses it for deleveraging under potentially
improving conditions in Russia's seismic market.  The company's
cash flow generation capacity would depend on Russian oil
companies' budgeted capital expenditures and their access to
international capital markets.  For an upgrade, S&P would also
anticipate no deterioration in the group's liquidity, no
significant contingent liabilities for IGSS as a result of the
Syntech buyout offer, and no aggressive shifts in its strategy
and financial policy, notably with regard to shareholder

Rating downside could arise from substantial deterioration in the
Russian seismic market or pronounced weakening in IGSS'
liquidity, which S&P don't currently expect in its base case.

NEFTSERVICEHOLDING LLC: Moody's Assigns 'B1' Corp. Family Rating
Moody's Investors Service has assigned a B1 corporate family
rating (CFR) and a B1-PD probability of default rating (PDR) to
Neftserviceholding LLC (NSH), a Russian independent oilfield
services (OFS) company with operations in Russia, Kazakhstan and
Uzbekistan. The outlook on the ratings is stable. This is the
first time Moody's has assigned ratings to NSH.

Ratings Rationale

The B1 rating primarily reflects (1) NSH's small scale of
operations by global standards; (2) its position as a niche
player in the highly competitive and fragmented drilling and well
servicing segments, as well as in the geophysics segment, which
is dominated by a few large players; (3) limited customer
diversification, with most revenues coming from OAO Lukoil (Baa2
stable) and its joint ventures (JVs), albeit gradually improving
through actively developing relationships with other Russian oil
companies such as Gazprom Neft JSC (Baa2 negative) and OJSC Oil
Company Rosneft (Baa1 negative), as well as with Chinese state
oil companies, former Lukoil's partners in Kazakh JVs, such as
China National Petroleum Corporation (Aa3 stable) and China
Petroleum and Chemical Corporation (Aa3 stable); and (4) the
company's exposure to the Commonwealth of Independent States
(CIS) region with a challenging political, regulatory and
operating environment, further exacerbated by the ongoing geo-
political uncertainties related to the conflict between Russia
and Ukraine.

The B1 rating also takes into account NSH's concentrated
ownership structure, with over 90% of the company controlled by
the investment holding, Perm Financial and Industrial Group
(PFIG, not rated). PFIG has unrestricted access to the company's
profits and cash flows, however, the risks related to the
corporate governance and potential excessive shareholder
distributions are partly compensated by a track record of a
prudent and supportive approach of the holding towards NSH and
its other investments. Therefore, as NSH has recently embarked on
an ambitious development program, Moody's expects that PFIG will
shift to more conservative cash distributions from the company.

More positively, NSH's rating acknowledges (1) the company's
geographically diversified production base across hydrocarbon-
rich countries in the CIS region, which benefit from strong long-
term industry fundamentals; (2) diversification into a range of
services at different stages of field development, albeit with a
growing focus on drilling; (3) a high quality modern fleet, which
provides NSH with a competitive advantage against larger peers
and allows for better efficiencies, evidenced by the company's
solid track record of profitable double-digits sales growth over
the past few years and historical adjusted EBITDA margin of
around 19%.

Moody's also expects that, despite an ambitious expansion program
launched in 2014, NSH will adhere to its historically
conservative financial profile, and Moody's expects that adjusted
debt/EBITDA will not be exceeding 2.5x in the foreseeable future.
Moody's also expects NSH to maintain sufficient liquidity,
considering limited refinancing requirements in the next 12-18
months, as well as the company's prudent approach towards capex
which will remain highly flexible and subject to financing

Rationale for the Stable Outlook

The stable outlook on the ratings reflects Moody's expectation
that the company will continue to deliver on its growth strategy
as planned while maintaining robust operating performance and
adhering to conservative financial and liquidity management
policies, with adjusted debt/EBITDA not exceeding 2.5x. Moody's
also does not expect at this point material impact on operating
performance from the current geopolitical tensions. On the back
of start-up costs from new contracts, Moody's expects that the
leverage at year-end 2014 will increase from the sound 1.1x of
year-end 2013.

What Could Change the Rating Up/Down

Over time Moody's could consider upgrading NSH's rating if the
company were to (1) continue to successfully grow its business
and improve customer diversification as planned and focusing on
smooth organic expansion with balanced capex program; (2) deliver
robust operational performance; (3) maintain a leverage (measured
as adjusted debt/EBITDA) below 2.0x on sustained basis; and (4)
build a track-record of maintaining a solid liquidity profile.

Moody's would consider downgrading the ratings if (1) NSH's
leverage materially increases above expected levels, either as a
result of more aggressive debt-financed capex and shareholder
distributions or owing to lower profitability, such that adjusted
debt/EBITDA exceeds 2.5x on sustained basis; (2) the company's
operating performance deteriorates as a result of the loss of a
major customer or negative market developments, including the
potential adverse impact of the increasing geopolitical risks on
exploration and production activity in the region. Any concerns
about the company's liquidity could also put negative pressure on
the ratings.

Principal Methodology

The principal methodology used in this rating was Global Oilfield
Services Rating Methodology published in December 2009.

Neftserviceholding LLC (NSH) is a Russian independent oilfield
services (OFS) company with presence in the Caspian region of
Kazakhstan and Uzbekistan and in most important Russian oil and
gas provinces. The company provides a range of OFS services with
a growing focus on the drilling segment. Other segments include
well servicing and workover, geophysics, and other non-core
services. In 2013, NSH generated RUB22 billion (US$690 million)
of revenues and RUB4 billion (US$130 million) of adjusted EBITDA.


T-2: Awaits Decision on Commencement of Bankruptcy Proceedings
Telecompaper, citing Sta, reports that the District Court in
Ljubljana was set to decide yesterday, Sept. 10, on the date for
the commencement of bankruptcy proceedings against T-2, as
proposed by the Company for managing the bank assets.

However, at T-2, they are convinced that bankruptcy will not
occur, because in their opinion, the DUTB can repay the
preferential rights only from the value of the pledged assets,
Telecompaper relays.  For its part, the DUTB claims T-2 is not
fulfilling its obligations in receivership and has not reached
the goals that were set out in the restructuring plan,
Telecompaper discloses.

T-2 is a Slovenian telecommunications operator.


YUKSEL INSAAT: Moody's Withdraws 'Caa2' Corporate Family Rating
Moody's Investors Service has withdrawn the Caa2 Corporate Family
Rating (CFR) and Caa2-PD Probability of Default Rating (PDR) of
Yuksel Insaat A.S. (Yuksel). Concurrently, Moody's has also
withdrawn its Caa2 rating on the US$200 million bond due
November 2015. The ratings have been withdrawn pursuant to
Moody's guidelines for the withdrawal of ratings, as insufficient
information is available to Moody's to continue monitoring
effectively the company's creditworthiness.

Ratings Rationale

Moody's has withdrawn the rating because of inadequate
information to monitor the rating, due to the issuer's decision
to cease participation in the rating process.

Yuksel Insaat A.S. (Yuksel), which has corporate headquarters in
Ankara, Turkey, is among the largest construction companies in
the country. The company was established in 1963 by the Sazak and
Sert families and maintains a visible footprint in Turkey, where
more than half of its revenues are generated, but has expanded
into the Middle East and North Africa (MENA) region as well as
Central Asia over recent years to diversify its revenue streams.
The company generated revenues of TRY1.8 billion (ca. $950
million) in its financial year 2013.


AKTIV BANK: Declared Insolvent by Central Bank
According to Mena Report, the National Bank of Ukraine, the
country's central bank, confirmed that Aktiv Bank has been
declared insolvent.

The NBU said the bank executed its operations without adequate
assessment of the risk or quality of securities and failed to
make timely payments to depositors and creditors, Mena Report

The NBU disclosed that after obtaining complaints from customers
about the bank's failure to obtain its obligations, it initiated
an unscheduled inspection on May 22, Mena Report relays.

After the inspection found the bank had violated the requirements
of NBU regulations and defaulted on payments, it was categorized
as a troubled bank and put under NBU supervision, Mena Report

Aktiv Bank is based in Kyiv.

U N I T E D   K I N G D O M

BRADFORD BULLS: Owes Creditors GBP2MM a Year After Liquidation
Rhys Thomas at Telegraph & Argus says that a new liquidator
report revealed defunct company Bradford Bulls Holdings owes
creditors GBP2 million a year on from when it went into

The figure -- GBP1.97 million to unsecured creditors and
GBP31,000 to preferential creditors -- is revealed in a report by
liquidators the P&A Partnership, which produced the first annual
progress report into the former Bradford Bulls Holdings as a
statutory requirement one year on from liquidation, according to
Telegraph & Argus.

The report notes that Brendan Guilfoyle, joint liquidator, said
the debt will never be met.  Mr. Guilfoyle, the report relates,
added that he did not know who the creditors were.

"That money will never be seen.  We have complied with a
statutory requirement.  The directors co-operated fully and we
submitted our report," the report quoted Mr. Guilfoyle as saying.

"There is nothing exceptional there -- it is much smaller than
football," Mr. Guilfoyle said.

The report notes that the GBP1.97 million is an increase from
GBP1.3 million of debts the defunct Bulls company had when it
plunged into administration, before then entering liquidation,
last year.

Telegraph & Argus relays that the liquidator's report covers
July 1 last year to June 30 this year and includes figures of
GBP1,258 for liquidators' expenses and disbursements, and
GBP16,268 for the work done on the report.

The total figure includes GBP558,480 yet to be claimed by Her
Majesty's Revenue and Customs.

Telegraph & Argus notes that the liquidator's report stated:
"Pursuant to rule 11.7 of the Insolvency Rules 1986, I am
required to give notice to creditors that the joint liquidators
are unable to declare a dividend to creditors as the funds
realised have been used in defraying the expenses of the

It finishes by stating: "The joint liquidators are required to
provide creditors with an annual progress report within two
months of the anniversary of the liquidation. Should the
liquidation have been completed prior to the anniversary then a
draft final report will be issued prior to the convening and
holding of the final meeting of creditors."

Last year, a progress report into the financial affairs of
Bradford Bulls Holdings by the P&A Partnership shows the former
company had moved into creditors voluntary liquidation after
receiving GBP28,681 claims from preferential creditors and
GBP1,120,667 from unsecured creditors, the report relays.

The Telegraph & Argus reported last year that creditors of the
former company include Revenue and Customs, Bradford Council, and
Integrated Bradford LEP.

Smaller Bradford businesses Panache cheerleading school, Direct
Cleaning Bradford and Wakefield's County Catering Special Event
were among others to lose out when the company collapsed,
Telegraph & Argus adds.

IRON MOUNTAIN: Moody's Assigns Ba1 Rating to New GBP350MM Notes
Moody's Investors Service assigned a Ba1 rating to Iron Mountain
Incorporated's proposed GBP350 million senior unsecured notes
being issued by Iron Mountain's subsidiary, Iron Mountain Europe
PLC. The company will use net proceeds to reduce borrowings under
its revolving credit facility and for general corporate purposes.
The proposed transactions are leverage neutral and Iron
Mountain's Ba3 corporate family rating, existing ratings for its
debt instruments and stable ratings outlook are not affected.


Issuer: Iron Mountain Europe PLC

  GBP350 million senior unsecured notes due 2022 -- Assigned, Ba1

Ratings Rationale

Moody's analyst Raj Joshi said, "Iron Mountain's proposed notes
issuance will replenish the company's liquidity ahead of an
increase in shareholder distributions in connection with the
company's conversion to a real estate investment trust and an
increase in the payout ratio of ordinary dividends." The Ba3
corporate family rating continues to reflect Moody's expectation
that Iron Mountain's total debt to EBITDA (incorporating Moody's
standard analytical adjustments) will peak around mid 5x in the
second half of 2014, before it gradually declines to 5x in 2016.

On August 25, 2014, Iron Mountain also announced a new $400
million incremental term loan facility (not rated by Moody's)
under which the company has the right to borrow funds on or prior
to September 24, 2014. Moody's notes that in accordance with its
Loss Given Default methodology, changes in Iron Mountain's
capital structure, such as a reduction in subordinated debt
cushion or increase in senior debt relative to total debt, could
result in a downgrade of the company's existing senior and/or
senior subordinated debt instrument ratings. Although Iron
Mountain's corporate family rating will not be affected from
changes in the mix of debt, Moody's could lower the ratings for
Iron Mountain's debt instruments if the company elects to borrow
substantially under the new incremental term loan facility and
senior debt increases, or if senior subordinated notes that are
callable in 2014 are redeemed consistent with the company's plans
to reduce leverage over time.

The principal methodology used in this rating was Global Business
& Consumer Service Industry Rating Methodology published in
October 2010. Other methodologies used include Loss Given Default
for Speculative-Grade Non-Financial Companies in the U.S., Canada
and EMEA published in June 2009.

Iron Mountain is an international provider of information storage
and related services. Moody's expects Iron Mountain's
consolidated revenues to exceed US$3.1 billion in 2014.

IRON MOUNTAIN: S&P Assigns 'B+' Rating to GBP350MM Sr. Notes
Standard & Poor's Ratings Services assigned print company Iron
Mountain Europe PLC's proposed issuance of GBP350 million senior
notes due 2022 a 'B+' issue-level rating, with a recovery rating
of '4', indicating S&P's expectations for average (30%-50%)
recovery for bondholders in the event of a payment default.  The
company is using the proceeds to repay indebtedness under the
company's revolving credit facility and for general corporate

S&P expects leverage will remain unchanged in the mid-5x area.
The ratings on Iron Mountain Inc. reflect S&P's assessment of its
"fair" business risk profile and "aggressive" financial risk
profile.  S&P downgraded the company on June 30, 2014, which
reflected its view that the company would not rapidly deleverage
to below 5x despite its conversion to a REIT.  S&P views the
company as having less financial flexibility, given its increased
dividend distributions to shareholders in addition to its already
high outlays for capital expenditures and acquisitions, which S&P
expects the company will fund through a combination of equity
and/or debt financing.


Iron Mountain Inc.
Corporate Credit Rating         B+/Stable/--

New Rating

Iron Mountain Europe PLC
GBP350M notes due 2022            B+
   Recovery Rating               4

JOHNSTON PRESS: Moody's Assigns 'B3' Corporate Family Rating
Moody's Investors Service assigned a definitive B3 corporate
family rating (CFR) to Johnston Press plc, and a definitive B3
rating to the GBP225 million equivalent senior secured notes due
2019 issued by Johnston Press Bond plc (a special purpose vehicle
(SPV) formed solely for the issuance of the Notes; this SPV on-
lends the note proceeds to Johnston Press plc). The ratings are
in line with the provisional ratings originally assigned on May
9, 2014.

Moody's has also assigned a B3-PD Probability of Default (PDR) to
the company. The outlook on all ratings is stable.

Ratings Rationale

On June 23, 2014, Johnston Press successfully completed its debt
refinancing (announced on 9 May 2014). Net proceeds of GBP140
million were received by the Company in connection with rights
issue, and further to the announcement made by the Company on
May 14, 2014, net proceeds of GBP220.5 million from the offering
of GBP225 million 8.625% senior secured notes (due 2019) at an
issue price of 98%, were released to the company from escrow. All
amounts outstanding under the previous debt facilities were
thereafter repaid and cancelled in full and the New Revolving
Credit Facility of GBP25 million became available.

The final terms of the Notes are in line with the drafts reviewed
for the provisional ratings assignments. In line with Moody's
expectation, at the closing of the refinancing transaction,
Johnston Press' Gross debt/EBITDA (as adjusted by Moody's) has
reduced to 4.8x on a 2013 pro-forma basis (compared with 6.2x at
the end of FY2013; both excluding restructuring costs).

The B3-PD PDR, in line with the CFR, reflects 50% expected family
recovery rate, as customary for a debt structure containing bond
and bank debt. The B3 CFR for Johnston Press, reflects the (1)
fairly limited size and scope of the company's operations and
vulnerability of the majority of its revenues to the cyclical
nature of advertising spending; (2) high degree of reliance on
declining print advertising revenues; (3) pressure on print
circulation volumes for local and regional newspapers; (4) fact
that the company operates in a competitive industry and the
advent of new technologies, such as the provision of newspaper
content on free internet sites, may put pressure on its
advertising and newspaper sales revenue; and (5) execution risks
associated with the transformational strategic plan.

However, more positively the rating takes into account the (1)
diversified revenue base of the group by sales category,
geography and customer mix with market-leading positions for most
of its product offerings; (2) expectation that going forward
print advertising will decline at a slower pace and that Johnston
Press will be able to increase cover prices to protect its
circulation revenues; (3) strong efforts to grow digital
advertising revenues; (4) turnaround transformation strategy
implementation showing positive results in the initial years;
resulting in good cost control and higher operating margin than
peers; and (5) good free cash flow generation expected from 2015
onwards (2014 will be affected by restructuring related
outflows), which should help Johnston Press in de-leveraging but
Moody's-adjusted gross debt/ EBITDA will nevertheless carry the
impact of movements in IAS 19 pension deficit.

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

Johnston Press plc is a leading UK multimedia company that
publishes 13 paid for daily newspapers including The Scotsman,
The Yorkshire Post and The News (Portsmouth), 196 paid for
weeklies, 39 free newspapers and 10 lifestyle magazines. The
company has 185 local and e-commerce websites with complementary
mobile sites and owns a number of tablet and Smartphone apps.

OATLANDS: In Administration; Business as Usual
Guernsey Press reports that visitor attraction Oatlands has gone
into administration after a "difficult few months".

According to Guernsey Press, the Royal Court granted the
administration order to help preserve the businesses on the site.

"It is business as usual for the tenants on the site and we
encourage the public to continue supporting this popular
attraction," Guernsey Press quotes Jamie Toynton from
administrator Grant Thornton, who will help manage the site while
its future is decided, as saying.

Oatlands tenants are being contacted by the administrator, but
their business will be unaffected by this appointment which will
be concerned with operation of the company owning the site and
not with the day-to-day trading,
Guernsey Press notes.

SCOMI OILTOOLS: In Liquidation, Total Debts Reach GBP14.68 Mil.
Sea Ship News reports that Scomi Oiltools (Europe) Limited (SOEL)
is now in the hands of a court appointed liquidator.

The company ceased business operations in May 2012, according to
Sea Ship News.  The report notes that its total debts reached
GBP14.68 million.

Parent firm Malaysia's Scomi Group said in a release that its
intention is to focus on the eastern hemisphere and there was
unlikely to be any further European engagement, the report

Scomi Oiltools (Europe) Limited (SOEL) is a Scottish subsidiary
of Malaysia's Scomi Group.   The principal activity of SOEL was
the provision of oilfield equipment, supplies and services.


* MENA Sovereign Ratings Remain Wide But Stable, Fitch Says
Fitch Ratings says in a new report that the divergence between
the sovereign ratings of energy exporters and importers in the
Middle East and North Africa (MENA) remains wide but stable.

Economic performance of energy exporters is forecast to remain
strong, due to high levels of government spending and robust non-
oil growth.  Performance in energy importers is expected to pick
up from a weak base, owing to external support, an improving
global economic outlook and, in some cases, a lessening of
political instability.

Fitch's forecasts, which it has extended to 2016 in the new
report, show fiscal challenges across the region.  For energy
exporters, surpluses are forecast to decline in line with falling
oil prices -- Fitch expects Brent crude to average USD95/b in
2016 compared to USD108/b in 2014.  Some of the region's energy
importers have among the largest fiscal deficits of all Fitch-
rated sovereigns.  Tackling sources of fiscal rigidities, such as
large subsidy bills, would be rating positive.  Fitch considers
progress in Morocco (BBB-/Stable), and more recently Egypt (B-
/Stable), as encouraging.

Fitch views geopolitical risk as elevated compared with other
regions.  The recent emergence of ISIS in Iraq and Syria poses
risks to several MENA sovereigns.  The potential for worsening
spill over from events in Syria is reflected in the Negative
Outlook for Lebanon (B/Negative). Domestic political transitions
also remain a source of uncertainty and undermine the environment
for economic reform and performance.  Progress has been made in
Egypt and Tunisia (BB-/Negative), although the risks in the
latter remain captured in the Negative Outlook.

Israel (A/Positive) is the only country in the region with a
Positive Outlook.  It has made significant progress in fiscal
consolidation in recent years, lowering the debt/GDP ratio.  The
budgetary impact of the recent conflict in Gaza, which occurred
at a time of slowing growth, is likely to complicate further
near-term deficit reduction.  Fitch has cut its projections for
Israel's growth and raised them for the budget deficit for 2014
and 2015.

The ratings of MENA energy importers range from 'BBB-' (Morocco)
to 'B-' (Egypt).  Energy exporters' ratings range from 'BBB' in
Bahrain to 'AA' in Abu Dhabi, Kuwait and Saudi Arabia.


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

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

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


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

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

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

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

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

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

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