TCREUR_Public/141002.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, October 2, 2014, Vol. 15, No. 195



UNICREDIT BANK: S&P Cuts Ratings on Sub. Debt Instruments to BB+


CORPORATE COMM'L: Assessment Expected to Be Completed This Month


NOKIA SOLUTIONS: S&P Withdraws 'BB' Long-Term Corp. Credit Rating
STORA ENSO: S&P Affirms 'BB/B' Issuer Credit Ratings


AIR FRANCE-KLM: Two-Week Pilots Strike Ends; Future Uncertain
SPIE BONDCO 3: Moody's Puts 'B1' CFR on Review for Upgrade


KUKA AG: S&P Affirms 'BB' CCR on Proposed Swisslog Acquisition
MITTELDEUTSCHE FAHRRADWERKE: Applies for Insolvency Proceedings
ZWEIBRUECKEN AIRPORT: Insolvency Proceedings Begin




DRYDEN XIV: Moody's Affirms 'Ba3' Rating on Class E Notes
IRISH BANK: Unsecured Creditors to Share in Liquidation Payout
SORRENTO PARK: Fitch Assigns 'B-(EXP)' Rating to Class E Notes
WINDERMERE X CMBS: Fitch Cuts Rating on Class D Notes to 'Dsf'
* IRELAND: Number of Business Bankruptcies Rises to 300


KASSA NOVA: S&P Affirms 'kzBB' Issuer Credit Rating


S&B INDUSTRIAL: Moody's Affirms 'B3' CFR; Outlook Positive


VAN LANSCHOT: Fitch Affirms 'BB+' Rating on Tier 1 Securities


NORWEGIAN ENERGY: May Not Meet Covenants After Oil Field Shutdown


HMS HYDRAULIC: S&P Retains 'B' Global Scale CCR; Outlook Stable
IMONEYBANK: Moody's Lowers National Scale Rating to ''
IMONEYBANK: Moody's Cuts Deposit Rating to 'Caa1'; Outlook Neg.

U N I T E D   K I N G D O M

CAIP: Goes Into Administration, Cuts 110 Jobs
FERGUSON MARINE: Secures GBP12 Million Ferry Contract
LUDGATE FUNDING: Fitch Affirms 'CC' Ratings on 7 Note Classes
MF GLOBAL: October 10 Claims Filing Deadline Set
PARK ROW: October 31 Claims Submission Deadline Set

PREFERRED RESIDENTIAL 06-1: S&P Raises Ratings on 2 Notes to BB
RANGERS FOOTBALL CLUB: Ex-Owner Disqualified as Director
TRAVELPORT LIMITED: Moody's Raises CFR to 'B2'; Outlook Stable



UNICREDIT BANK: S&P Cuts Ratings on Sub. Debt Instruments to BB+
Standard & Poor's Ratings Services has taken various rating
actions on UniCredit Bank Austria AG (Bank Austria;
BBB+/Negative/A-2) hybrid capital instruments.  S&P also removed
the "under criteria observation" (UCO) identifier from the
ratings on Bank Austria's hybrid capital instruments affected by
S&P's revised bank hybrid capital criteria.

S&P has downgraded 22 subordinated debt instruments issued by
Bank Austria to 'BB+' from 'BBB-'.  S&P has also affirmed its
'BB-' ratings on two legacy tier 1 instruments issued by
subsidiary BA-CA Finance (Cayman) Ltd.

The rating actions on Bank Austria's hybrid instruments follow
Standard & Poor's various rating actions on nearly 1,200 hybrid
capital instruments issued by European financial institutions.
The rating actions followed the publication of S&P's revised bank
hybrid capital criteria on Sept. 18, 2014.

In S&P's view, European regulators are adopting a tougher "bail-
in" stance (where investors share in the cost of a government's
rescue of a failing bank) toward hybrid capital instruments.  S&P
believes that this increases the likelihood that European banks
will be required to use hybrid capital instruments included in
their regulatory capital base to absorb losses in the event of
material stress.


Subordinated Debt Ratings Lowered

UniCredit Bank Austria AG
                                                     To      From

US$700 mil 7.25% sub nts due 02/15/2017              BB+     BBB-
ISIN: US060587AB85

US$30 mil 6.00% sub bnds ser S149 due 11/14/2016     BB+     BBB-
ISIN: XS0138294201

US$10 mil 6.00% sub bnds ser S150 due 11/14/2016     BB+     BBB-
ISIN: XS0138355515

US$40.15 mil 6.21% nts ser S155 due 12/05/2031       BB+     BBB-
ISIN: XS0139264682

JPY5 bil 5.39% med-term nts ser 47 due 10/31/2016    BB+     BBB-
ISIN: XS0070770333

JPY5 bil 5.20% med-term nts ser 48 due 11/28/2016    BB+     BBB-
ISIN: XS0071432222

EUR55 mil fltg rate nts ser S144 due 08/20/2033      BB+     BBB-
ISIN: XS0134061893

EUR30 mil fltg rate nts ser S147 due 10/31/2031      BB+     BBB-
ISIN: XS0136314415

EUR46 mil fltg rate nts ser S127 due 01/25/2031      BB+     BBB-
ISIN: XS0123117292

EUR50 mil fltg rate nts ser S122 due 10/24/2015      BB+     BBB-
ISIN: XS0118835676

EUR12 mil 5.935% sub bnds ser S148 due 10/30/2031    BB+     BBB-
ISIN: XS0137905153

EUR60 mil fltg rate nts ser S151 due 12/31/2031      BB+     BBB-
ISIN: XS0138428684

EUR40 mil 6.00% sub bnds due 11/30/2021              BB+     BBB-
ISIN: AT0000539481

EUR5 mil var rate nts due 12/06/2016                 BB+     BBB-
ISIN: AT0000539531

EUR9 mil 6.00% callable bnds ser P15 due 12/21/2026  BB+     BBB-
ISIN: AT0000539606

EUR95.28 mil fltg rate bnds ser S158 due 12/27/2031  BB+     BBB-
ISIN: XS0140394817

EUR40 mil fltg rate bnds ser S160 due 12/27/2015     BB+     BBB-
ISIN: XS0140608125

EUR63 mil 5.80% bnds ser S161 due 12/27/2021         BB+     BBB-
ISIN: XS0140608398

EUR50 mil fltg rate bnds ser S162 due 12/27/2026     BB+     BBB-
ISIN: XS0140691865

EUR125 mil fltg rate bnds ser S163 due 12/27/2029    BB+     BBB-
ISIN: XS0140838474

EUR50 mil fltg rate bnds ser S164 due 12/27/2021     BB+     BBB-
ISIN: XS0140907626

EUR100 mil fltg rate bnds ser S167 due 12/28/2021    BB+     BBB-
ISIN: XS0141069442

Ratings Affirmed

BA-CA Finance (Cayman) Ltd.
Preferred Stock
  EUR150 mil variable rate callable perpetual
  non-cumulative non-voting fixed/floating
  rate preferred securities
  ISIN: DE000A0DYW70                                 BB-

Junior subordinated
  EUR250 mil variable rate junior subordinated
  non-cumulative perpetual preferred securities
  ISIN: DE000A0DD4K8                                 BB-


CORPORATE COMM'L: Assessment Expected to Be Completed This Month
FOCUS News Agency, citing Standart daily, reports that Bulgarian
Finance Minister Rumen Porozhanov said on Monday the assessment
of the state of Corporate Commercial Bank should be completed in
early October.

FOCUS News relates that Mr. Porozhanov told Nova TV channel that
"a Vienna-based fund has declared interest in drafting a recovery
plan for the bank based on this assessment."

"For me, this is the best option," FOCUS News quotes Mr.
Porozhanov as saying.

The potential investors are expected to sign a confidentiality
agreement with the central bank and begin receiving information
about the state of the lender from the central bank-appointed
administrators, FOCUS News discloses.

Referring to the infringement procedure opened by the European
Commission against Bulgaria for its failure to allow clients of
Corporate Commercial Bank access to their money, Mr. Porozhanov,
as cited by FOCUS News, said the EU executive body is discussing
with Bulgarian authorities whether the EU's Deposit Guarantee
Scheme (DGS) Directive has been correctly transposed in Bulgarian
law to allow depositors access to their money as early as
possible after it emerges that a commercial bank is faced with
liquidity problems.

Bulgaria's current regulations for special supervision of
troubled commercial banks by the central bank don't provide for
allowing depositors in those banks access to their state-
guaranteed money before such banks are stripped of their banking
license, FOCUS News notes.

Corporate Commercial Bank is Bulgaria's fourth largest private
lender with total assets topping BGN7.3 billion in the first
quarter of 2014, or 8.4% of total Bulgarian private banking
assets, according to AFP.


NOKIA SOLUTIONS: S&P Withdraws 'BB' Long-Term Corp. Credit Rating
Standard & Poor's Ratings Services said that it has affirmed its
'BB' long-term corporate credit and issue ratings on
Dutch-headquartered telecommunications equipment maker Nokia
Solutions and Networks B.V. (NSN).

S&P subsequently withdrew the ratings at the issuer's request.

The outlook was positive at the time of the withdrawal, in line
with S&P's outlook on the parent Nokia Corp. (Nokia).

The affirmation reflects S&P's view of NSN as a "core" subsidiary
of Nokia, based notably on its integrated and material role for
Nokia and Nokia's full ownership of NSN.  According to S&P's
group rating methodology, the ratings and outlook on NSN mirror
the long-term corporate credit rating and outlook on Nokia.

STORA ENSO: S&P Affirms 'BB/B' Issuer Credit Ratings
Standard & Poor's Ratings Services affirmed its 'BB/B' long- and
short-term issuer credit ratings and the 'K-4' short-term Nordic
regional scale rating on Finnish forest and paper products
company Stora Enso Oyj.  The outlook remains stable.

At the same time, S&P affirmed its 'BB' issue rating on Stora
Enso's senior unsecured debt.  S&P revised the recovery rating on
this debt to '4' from '3', now indicating S&P's expectation of
average recovery (30%-50%) in the event of a payment default.

The affirmation follows Stora Enso's successful completion of the
cost-cutting plan, which, along with its ongoing growth
investments, resulted in improved profitability in the first half
of 2014.  S&P expects the EBITDA margin to improve, inching
toward 13% in 2016, from 10.3% for the 12 months ended June 30,
2014, as the group continues to cut costs and its growth
investments come online.  S&P thinks that the 50%-owned Montes
del Plata pulp mill in Uruguay, which started operations in
midyear 2014, will be a major contributor to growth when it
operates at full capacity from 2015.  S&P assumes that the
paperboard mill in China will also be a key component of Stora
Enso's growth when the mill comes online in 2016.

In S&P's base-case scenario, it expects Stora Enso's credit
metrics will remain marginally weak for its "significant"
financial risk profile.  This is a result of increased debt
linked to the group's investment projects.  S&P forecasts that
adjusted funds from operations (FFO) to debt will be just below
20% in 2014 and 2015, while adjusted debt to EBITDA will be less
than 4x over the same period.  S&P also anticipates that the
group's free operating cash flows will be neutral or slightly
negative.  That said, S&P believes there is an upside to the
credit metrics from 2016, given the increased earnings and cash
flow generation potential of the group's current investment
programs.  Consequently, S&P believes that the weakening will
most likely be temporary.  However, delays or cost overruns
relating to the investment program, coupled with worsening
operating conditions in the existing activities, could put
additional pressure on credit metrics, and, in turn, on the
ratings, in S&P's view.

While credit metrics are on the weak side of what S&P views as
commensurate with the current rating, it thinks that the
financial risk profile is supported by the group's prefunding of
investments and prudent liquidity management.  S&P also thinks
that the group has additional financial flexibility, since it has
indicated that it could sell additional noncore assets, similar
to its divestment of Corenso, announced on Sept. 30, 2014, as
well as the disposals of the Thiele Kaolin stake and the Uetersen
paper mill announced earlier in 2014.

"We base our assessment of Stora Enso's business risk profile on
the group's material exposure to the cyclical European pulp and
paper markets.  Despite recent capacity closures, there is still
overcapacity in European publication paper, which makes
sustainable price increases difficult to implement.  Our view of
the group's business risk is further constrained by a large
proportion of sales in low-growth European markets.  These
weaknesses are offset by Stora Enso's large size and scope as one
of the world's largest forest and paper companies, its well-
diversified asset and product portfolio, and a strong and growing
presence in the paper-based packaging segment, where consumer
packaging in particular tends to show more resilience to cyclical
downturns," S&P noted.

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

   -- Economic recovery to continue to pick up in 2014, albeit
      remaining fragile.

   -- Graphic paper demand to continue falling by some 3%-5%
      annually over 2014-2015 in Europe due to digital
      substitution, while demand for Stora Enso's packaging
      products increase by about 1%-2% per year over the same

   -- Stable pricing environment for paper and paperboard in
      Europe and broadly stable pulp prices for both softwood and

   -- Revenues to decline by 1%-3% in 2014 and grow moderately
      from 2015, driven by the packaging and pulp divisions (with
      the introduction of the Montes del Plata pulp mill).

   -- EBITDA margin to gradually improve toward 13% on the back
      of ongoing cost cutting and growth investments.

   -- Capital expenditures in 2014 between EUR790 million and
      EUR870 million, including equity injections, and at a
      similar level in 2015.

   -- Dividends to remain at about EUR240 million in 2015 and

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

   -- Debt to EBITDA of about 3.8x.
   -- FFO to debt of about 20%.

The stable outlook reflects S&P's view that Stora Enso's
profitability will gradually improve, leading to broadly stable
credit metrics.  S&P forecasts an adjusted ratio of FFO to debt
of about 20% and adjusted debt to EBITDA of less than 4x in 2014
and 2015, levels S&P regards as commensurate with the 'BB' long-
term rating.

S&P could lower the long-term rating if weakening market
conditions, combined with higher-than-expected investments, led
to a deterioration of Stora Enso's credit metrics.  For example,
S&P would consider a ratio of FFO to debt of about 15% and debt
to EBITDA of more than 4x, for an extended period with no scope
for improvement as incommensurate with the long-term rating.
Furthermore, S&P thinks the group's credit quality could weaken
if its financial policy became more aggressive.  This could occur
as a result of large, debt-financed acquisitions or exceptionally
shareholder-friendly measures, although S&P thinks these are
currently unlikely.

An upgrade is highly unlikely in the coming 12 months, in S&P's
view, due to still-difficult European paper markets and the
group's investment ambitions.  Over the longer term, S&P could
raise the long-term rating if it saw substantial and sustained
improvements in the group's profitability and cash flow
generation to such an extent that S&P could revise its assessment
of Stora Enso's business risk profile upward, or if FFO to debt
rose to and remained above 30%.


AIR FRANCE-KLM: Two-Week Pilots Strike Ends; Future Uncertain
Hugh Carnegy at The Financial Times reports that Air France-KLM
scrambled to get its full French fleet back in the air on
Sept. 29 after the end of a damaging two-week pilots strike that
left a number of key questions hanging over the airline's future.

According to the FT, airline officials said it would take until
midweek to fully restore Air France's schedule, which was reduced
by more than half during the strike. It estimated the cost of the
strike at between EUR250 million-EUR300 million, not counting
compensation for stranded passengers and the loss of potential
future business, the FT relates.

That figure would exceed the EUR238 million operating profit
Air France-KLM reported in the second quarter as it labors to
return to profitability after several years of red ink -- bottom
line losses last year totaled EUR1.8 billion, the FT says.

The SNPL, the main pilots' union, called off its action, the
longest in Air France's history, on Sunday despite the breakdown
of prolonged negotiations, the FT relays.  The union objects to
the terms under which Air France-KLM plans a strategic expansion
of its low-cost operations to meet competition from airlines such
as easyJet and Ryanair, the FT discloses.

After backing one key concession to the unions, the socialist
government adopted a robust stance, refusing a union demand for
an outside mediator at a critical moment in the talks, the FT

Alexandre de Juniac, Air France-KLM chief executive, vowed to
press on with his "Perform 2020" strategic plan, which includes
investing EUR1 billion in Transavia, its low-cost operation, to
expand it to 100 aircraft by 2017 from 47 currently, the FT

"The key point is that this is not the end of the dispute," the
FT quotes Gerald Khoo at Liberum Capital as saying.  "Air France
needs a new collective bargaining agreement with the pilots and
it needs it to include sufficient flexibility to expand its low
cost service within France."

There were also mixed views of Mr. de Juniac's decision, under
pressure from the French government, to abandon plans to
establish three Transavia hubs outside Air France-KLM's French
and Dutch home countries, the FT notes. Pilots had feared they
would lead to the relocation of jobs to cheaper centers, the FT

Air France is the French flag carrier headquartered in Tremblay-
en-France.  It is a subsidiary of the Air France-KLM Group and a
founding member of the SkyTeam global airline alliance.

SPIE BONDCO 3: Moody's Puts 'B1' CFR on Review for Upgrade
Moody's Investors Service has placed all ratings of Spie BondCo 3
S.C.A. under review for upgrade, including the corporate family
rating (CFR) of B1, probability of default rating (PDR) of B1-PD,
the rating of Spie's senior notes due 2019 of B3 and the rating
of debt facilities borrowed by Clayax Acquisition 4 SAS of B1.

Ratings Rationale

The decision to place the ratings under review follows Spie's
announcement on September 29 of the initial public offering (IPO)
on the regulated market of Euronext Paris. As part of the
intended IPO, Spie expects to raise gross proceeds of
approximately EUR525 million. The funds will -- in addition to
new banking facilities the company has put in place -- be applied
towards debt redemption and refinancing of the existing debt. The
execution of the IPO would be likely to lead to a material
reduction in net debt and further strengthening of free cash
flows due to reduction in interest expense. Spie has said it
anticipates its net (reported) leverage to reduce to below 2.5x
by year-end 2014 -- down from around 3.9x at FY2013 -- should the
transaction be successful. The anticipated improvement in
leverage is also attributed to the full-year contribution from
the acquisition of Hochtief Service Solutions (renamed Spie GmbH)
in September 2013.

The IPO is expected to close on October 8, 2014 and the price is
expected to be determined on October 9, 2014. Shares are expected
to start trading on October 10, 2014 and the settlement is
expected to occur on October 13, 2014.

During the review process, Moody's will assess the implications
of the proposed refinancing on the company's financial profile,
as well as its financial policy objectives post-IPO. If the IPO
goes ahead as scheduled, Moody's could upgrade the CFR by one or
two notches.

What Could Change the Rating Up/Down

Before placing the ratings on review, Moody's had indicated that
positive rating pressure could arise if the company (1) de-levers
its balance sheet leading to a Moody's adjusted gross debt/EBITDA
substantially below 5.0x on a sustainable basis; (2) improves its
(EBITDA-capex)/interest towards 3.0x; and (3) FCF/debt ratio
close to 10%.

Conversely, negative pressure could arise if (1) gross Moody's
adjusted gross debt/EBITDA ratio approaches 6.0x; (2) (EBITDA-
capex)/interest declines substantially below 2.0x; or (3) Free
Cash Flow deteriorates. Any significant debt-financed acquisition
may also put negative pressure on the ratings.

Principal Methodologies

The principal methodology used in these ratings 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.

Headquartered in France, Spie is a leading European multi-
technical services provider serving both the private and public
sector. The company specializes in electrical and mechanical
engineering, and heating, ventilation and air conditioning (HVAC)
services, accounting for majority of its sales, as well as
specialized services to the Oil & Gas, Communications, and
Nuclear sectors. Spie operates in nearly 400 locations in 30
countries, with France as its largest market, accounting for 54%
of its production in 2013.


KUKA AG: S&P Affirms 'BB' CCR on Proposed Swisslog Acquisition
Standard & Poor's Ratings Services affirmed its 'BB' long-term
corporate credit rating on Germany-based industrial automation
and robotics manufacturer KUKA AG.  The outlook remains stable.

The affirmation follows KUKA's announcement on Sept. 25, 2014,
that it will launch a voluntary public tender offer for
Switzerland-based automation solution provider Swisslog Holding
AG.  The offer values Swisslog at CHF338 million (about EUR280
million). S&P considers that the transaction has no impact on the
current rating and outlook on KUKA, as the company will largely
use existing cash resources and a small equity increase to
finance the transaction.  Given KUKA's "weak" business risk
profile, S&P does not consider cash in its credit ratio
calculation, in line with its criteria.  Funding for the Swisslog
acquisition will come partly from an increase in KUKA's equity
base of about EUR80 million.  Between EUR120 million and EUR150
million of the price will come from existing cash on KUKA's
balance sheet, and only the remainder will be debt-funded.
Management has publicly communicated that the equity increase is
part of the overall transaction and should be executed if the
offer on Swisslog is successfully concluded.

Although the acquisition of Swisslog will strengthen KUKA's end-
market and customer diversification, notably in healthcare and
logistics, S&P continues to view KUKA's business risk profile as
"weak," mainly driven by its weak and volatile profitability.

The stable outlook reflects S&P's view that KUKA will be able to
sustain its stable operating performance and maintain its credit
metrics commensurate with a 'BB' rating over the next two years.
S&P considers an adjusted ratio of debt to EBITDA of about 2.0x-
2.5x and FFO to debt of 35%-40% as commensurate with the current
rating.  In S&P's base-case scenario for 2014, it anticipates
that KUKA's credit metrics could fall below this target level
because of its partial consolidation of Swisslog.  However, S&P
expects KUKA's credit ratios to be well within the target range
in 2015.

S&P could consider raising the rating if KUKA's business risk
profile further strengthened toward S&P's "fair" category.  This
would depend on the company establishing a longer track record of
stable earnings with minimal volatility, even in case of
depressed volumes.  Given the current "weak" business risk
assessment, upside potential is unlikely if the company's
financial risk profile does not improve above the "intermediate"

S&P could lower the rating if KUKA's credit measures were to
weaken significantly or if the company were to report materially
negative FOCF for a prolonged period.  This could happen if
earnings suffered from a sales decline caused by weak end
markets, combined with an EBITDA margin materially lower than the
8% S&P currently forecasts.  The rating could also come under
pressure if the company's liquidity position deteriorated because
of reduced customer prepayments.

MITTELDEUTSCHE FAHRRADWERKE: Applies for Insolvency Proceedings
The board of management of MIFA Mitteldeutsche Fahrradwerke AG
filed an application on Sept. 29 to open insolvency proceedings
in self-administration pursuant to Section 270a of the
Insolvenzordnung (insolvency code) InsO with the relevant
district court of Halle (Saale) to enable it to continue the
restructuring process of MIFA itself.  The operative business of
MIFA remains unaffected and will continue as planned.

An essential part of the basic agreement that was concluded on
Aug. 22 with OPM Global B.V., a subsidiary of the Indian bicycle
manufacturer Hero Cycles Ltd. and One Square Advisory Services
GmbH, the joint representative of all bond creditors of the MIFA
bond 2013/18, to financially restructure MIFA could not be
implemented as pledged.  In view of this, the board of management
of MIFA decided on Sept. 29 to apply for insolvency proceedings
in self-administration to continue the restructuring process of
MIFA on its own and ensure trouble-free continuation of operative

Provided that the district court consents to the application for
self-administration, the MIFA board of management will be
provided with a preliminary custodian (Sachwalter).  Business
responsibility remains in the hands of the board of management
and the present sole managing director, Dr. Stefan Weniger, will
be joined by Thomas Mayer on Oct. 1 as announced who has
responsibility for operative business.  The board of management
will continue the business operations of MIFA to the full extent
and will initiate a sales process without delay.  The board of
management together with the creditors and the works council will
agree on a restructuring plan in the next few weeks; in
particular the plan will contain the necessary restructuring
steps and form the basis of restructuring MIFA.  MIFA will inform
its workforce about the current situation on Sept. 29.  The wages
and salaries of the present staff of around 600 are guaranteed
for three months through the Bundesagentur fuer Arbeit (federal
employment agency).

MIFA Mitteldeutsche Fahrradwerke AG is a German bicycle maker.

ZWEIBRUECKEN AIRPORT: Insolvency Proceedings Begin
Alliance News reports that insolvency proceedings for German
airport Zweibruecken were opened on Oct. 1.

According to Alliance News, the European Union ordered Germany to
recoup illegal state aid they granted to Zweibruecken.

The European Commission said Zweibruecken has received support
measures amounting to about EUR47 million (US$59 million) since
2000, Alliance News relates.

But the aid "unnecessarily duplicated already existing,
unprofitable airport infrastructure in the same region," the
commission found, pointing to the Saarbruecken airport, some 40
kilometers away, Alliance News notes.  According to Alliance
News, the commission said the support gave Zweibruecken an "undue
economic advantage".

Airlines were also given an undue advantage through agreements
concluded with Zweibruecken, the commission found, saying that
Germanwings has to pay back about EUR1.2 million, while Ryanair
and TUIFly owe around EUR500,000 and EUR200,000 respectively,
Alliance News discloses.

Zweibruecken Airport, which has 67 employees, is mainly used for
leisure flights to leading European tourism destinations.
According to the airport's Web site, it offers 28 weekly flights
during the summer season.


Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Greek integrated telecommunications operator
Hellenic Telecommunications Organization S.A. (OTE) to 'BB' from
'BB-'.  At the same time, S&P affirmed its 'B' short-term
corporate credit rating on OTE.  The outlook is stable.

In addition, S&P raised its issue ratings on the debt issued by
OTE's wholly owned financing vehicle, OTE PLC, to 'BB' from

"The upgrade follows our raising of the long-term sovereign
ratings on Greece to 'B' from 'B-' and reflects the company's
higher 'bb' stand-alone credit profile (SACP) than the sovereign
rating.  Consequently, our rating on OTE is now at the same level
as its SACP.  We also factor in our unchanged view that OTE is
unlikely to default in a hypothetical stress scenario that would
likely accompany a sovereign default of Greece, primarily owing
to the company's currently very solid balance sheet, including
large cash deposits held at highly-rated foreign banks.  In
addition, we expect OTE to be able to generate meaningful free
operating cash flow over the next couple of years despite
continued revenue declines, chiefly because of the company's
strong track record of cost cutting.  In such a stress scenario,
we also believe that OTE would be able to maintain "adequate"
liquidity," S&P said.

S&P's assessment of OTE's business risk profile as "fair" mainly
incorporates its view of high country risk in Greece.  OTE
generates about 75% of its revenues in Greece and currently faces
constrained consumer, government, and corporate spending, adverse
regulation, and fierce competition.  This is partly offset by
OTE's leading domestic market positions in mobile and fixed-line
services and S&P's belief that the company will continue to
undertake cost-cutting measures that will support its operating
margins despite falling revenues.

S&P assess OTE's financial risk profile as "intermediate,"
largely based on S&P's view that the company will continue to
deleverage, using free cash flow, and maintain a solid balance
sheet despite the still-high country risks in Greece and
uncertainty about Greek companies' future access to the capital

OTE's SACP reflects the application of a one-notch negative
adjustment for S&P's comparable ratings analysis, whereby it
reviews an issuer's credit characteristics in aggregate.  S&P
bases its comparable ratings analysis on its view that its
assessments of OTE's business risk and financial risk don't fully
reflect still-high country risk in Greece.  In addition, S&P
thinks OTE's solid free cash flow generation benefits from its
moderate network investments, but OTE will have to substantially
raise its investments over time, in S&P's opinion, to deploy
next-generation networks, such as long-term evolution (LTE)
networks, and to support its competitive position.

In S&P's base-case operating scenario for OTE, it assumes:

   -- That the Greek economy will emerge from several consecutive
      years of recession in 2015, with GDP up 1.9%.  That said,
      the recovery will likely be weak and gradual.  Continued
      high unemployment rates, constrained households incomes,
      and the telecom sector's typically lagging economic cycles,
      will likely translate into continuously prudent consumer
      behavior and pricing pressures.

   -- A softening organic revenue decline, in particular owing to
      easing regulatory pressures on mobile termination rates, as
      well as some potential benefits from LTE and pay-TV
      services and a rising proportion of post-paid contracts.
      S&P foresees revenues dropping by 3%-4% year on year in
      2015, followed by a dip of 1%-2% in 2016, after posting a
      5% like-for-like fall in second-quarter 2014.

   -- Continued sizable cost cuts, which will help OTE maintain
      EBITDA margins before restructuring costs in the 35%-36%

   -- Likely annual capital expenditures, excluding spectrum
      costs, at more than 15% of sales.  Additional spending for
      spectrum, the acquisition of pay-TV operator Nova, and the
      resumption of moderate dividend payments.

Based on these assumptions, S&P arrives at these credit metrics
for OTE:

   -- Funds from operations (FFO) to debt strengthening toward
      50% in 2015 on debt reduction, from 30% in 2012;

   -- Debt to EBITDA declining toward 1.5x in the next two years,
      from somewhat below 2.0x at year-end 2014; and

   -- Free operating cash flow from continuing operations (after
      spectrum investments) of about EUR0.4 billion annually in

S&P does not factor into OTE's SACP additional support from the
company's 40% shareholder, Deutsche Telekom AG (DT;
BBB+/Stable/A-2), primarily because S&P assess OTE as a non-
strategic subsidiary for DT under its criteria.  This is because
DT didn't provide material support to OTE during the sovereign
crisis in 2011 and 2012, and S&P thinks DT is likely to continue
taking an opportunistic approach to providing support in the

Although the Greek government directly and indirectly controls a
combined 10% of OTE's common stock, S&P do not assess OTE as a
government-related entity.  This reflects S&P's view that Greece
could sell its stake in OTE in the near to medium term to fulfill
EU and International Monetary Fund financial program targets.

The stable outlook reflects S&P's view that OTE will maintain
"adequate" liquidity and generate free operating cash flow of
about EUR0.4 billion annually in 2014-2016 (after spectrum
outlays).  Despite the still-weak economic environment in Greece,
S&P forecasts a softening pace of revenue decline, and that the
company's LTE and fixed-TV services will likely support its
competitive position.  Furthermore, S&P thinks OTE will maintain
its current EBITDA margins thanks to its continued cost cutting.

Rating upside could arise within a year if OTE demonstrates it
can continue containing its leverage despite likely accelerating
investment outlays, and it maintains its solid competitive
position and good operating performance, assuming liquidity
remains at least "adequate."  Although S&P could consider an
upgrade of OTE without a further upgrade of Greece, raising the
ratings on the company would be more likely if a sovereign
upgrade took place.  In addition, S&P could raise the ratings on
OTE if it observed that DT's commitment to OTE had strengthened.
Stronger support could take the form of a substantial increase in
DT's stake in OTE or other explicit forms of financial support.

S&P currently sees limited ratings downside.  S&P could lower the
ratings, however, if its assessment of OTE's free operating cash
flow generation prospects or liquidity weakens.  Also, if the
sovereign rating were lowered, S&P's long-term rating on OTE
would be affected, because it would cap it at a maximum of three
notches above the sovereign rating.  Furthermore, S&P could lower
the ratings, potentially by multiple notches, if it assessed that
the likelihood of Greece's exit from the eurozone (European
Economic and Monetary Union) has increased toward 33% or higher,
which would cause S&P to cap the long-term rating on OTE at 'B'.


DRYDEN XIV: Moody's Affirms 'Ba3' Rating on Class E Notes
Moody's Investors Service has upgraded the ratings on the
following notes issued by Dryden XIV - Euro CLO 2006 Plc:

  EUR35 million Class B Senior Floating Rate Notes, Upgraded to
  Aaa (sf); previously on Aug 12, 2011 Upgraded to Aa2 (sf)

  EUR28 million Class C Mezzanine Deferrable Interest Floating
  Rate Notes, Upgraded to Aa2 (sf); previously on Aug 12, 2011
  Upgraded to A2 (sf)

  EUR18 million Class D Mezzanine Deferrable Interest Floating
  Rate Notes, Upgraded to A3 (sf); previously on Aug 12, 2011
  Upgraded to Baa3 (sf)

  EUR6 million Class Q Combination Note, Upgraded to Aa2 (sf);
  previously on Aug 12, 2011 Upgraded to A1 (sf)

Moody's has affirmed the ratings on the following notes:

  EUR312.5 million (current outstanding balance of EUR83.5M)
  Class A Senior Floating Rate Notes, Affirmed Aaa (sf);
  previously on Aug 12, 2011 Upgraded to Aaa (sf)

  EUR27 million (current outstanding balance of EUR26.4M) Class E
  Mezzanine Deferrable Interest Floating Rate Notes, Affirmed Ba3
  (sf); previously on Aug 12, 2011 Upgraded to Ba3 (sf)

Dryden XIV - Euro CLO 2006 Plc, issued in August 2006, is a
collateralized loan obligation (CLO) backed by a portfolio of
mostly high-yield senior secured European loans. The portfolio is
managed by Pramerica Investment Management Inc. The transaction's
reinvestment period ended in September 2012.

Ratings Rationale

The rating actions on the notes are primarily a result of
deleveraging. The Class A notes have paid down by approximately
EUR195.9 million (63.0% of closing balance) in the last 3 payment
dates and EUR229.0 million (73.0% of closing balance) since
closing. As a result of the deleveraging, over-collateralization
(OC) ratios have increased. As of the trustee's September 2014
report, the Class A/B has an over-collateralization ratio of
142.1% compared with 130.3% 12 months ago, the Class C an over-
collateralization ratio of 126.3% compared with 119.6%, and the
Class D an over-collateralization ratio of 117.9% compared with
113.6%. The reported OC ratios do not reflect the latest payment
date on the 15 September 2014.

The ratings on the combination notes address the repayment of the
rated balance on or before the legal final maturity. For the
Class Q notes, the 'rated balance' at any time is equal to the
principal amount of the combination note on the issue date times
a rated coupon of 0.25% per annum accrued on the rated balance on
the preceding payment date, minus the sum of all payments made
from the issue date to such date, of either interest or

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 analysed the underlying collateral pool as having a
performing par and principal proceeds balance of EUR154 million
and GBP39.6 million, defaulted par of EUR1.0 million, a weighted
average default probability of 19.5% over 4.3 year weighted
average life (consistent with a WARF of 2796), a weighted average
recovery rate upon default of 47.3% for a Aaa liability target
rating, a diversity score of 27 and a weighted average spread of
4.1%. The GBP-denominated assets are fully hedged with a macro
swap, which Moody's also modelled.

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 92.2% of the portfolio exposed to senior
secured corporate assets would recover 50% upon default, while
the non first-lien loan corporate assets would recover 15%. In
each case, historical and market performance and a collateral
manager's latitude to trade collateral are also relevant factors.
Moody's incorporates these default and recovery characteristics
of the collateral pool into its cash flow model analysis,
subjecting them to stresses as a function of the target rating of
each CLO liability it is analyzing.

Methodology Underlying the Rating Action:

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

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

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed a lower weighted average recovery rate in
the portfolio. Moody's ran a model in which it reduced the
weighted average recovery rate by 5%; the model generated outputs
were within two notches 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 exposure to 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 because of
embedded ambiguities.

Additional uncertainty about performance is due to the following:

   * 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.

   * Around 26% of the collateral pool consists of debt
obligations whose credit quality Moody's has assessed by using
credit estimates.

   * 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.

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.

IRISH BANK: Unsecured Creditors to Share in Liquidation Payout
Barry O'Halloran at The Irish Times reports that unsecured
creditors of the defunct Irish Bank Resolution Corporation are
likely to share in a payout from its liquidation.

According to The Irish Times, the special liquidators,
Kieran Wallace -- -- and Eamon Richardson
-- -- on Oct. 1 published formal
notices in national newspapers asking unsecured creditors to
submit details of the amounts that they calculate are due to
them, by March 31 next year.

It is understood there will be a pool of money left to pay
unsecured creditors once secured and preferential liabilities are
dealt with, The Irish Times says.  At this point, it is not known
how much as the liquidators are in the process of selling the
last of IBRC's assets, The Irish Times notes.

At the same time, they may find themselves with other contingent
liabilities and the final amounts due to the unsecured creditors
themselves will also have to be calculated, The Irish Times
discloses.  As a result, it is not known if they will be repaid
the full amounts due to them, The Irish Times notes.

According to The Irish Times, one of those entitled to submit a
claim to the liquidators alongside the unsecured creditors is
Minister for Finance Michael Noonan, on behalf of the State.

                  About Irish Bank Resolution

Irish Bank Resolution Corp., the liquidation vehicle for what was
once one of Ireland's largest banks, filed a Chapter 15 petition
(Bankr. D. Del. Case No. 13-12159) on Aug. 26, 2013, to protect
U.S. assets of the former Anglo Irish Bank Corp. from being
seized by creditors.  Irish Bank Resolution sought assistance
from the U.S. court in liquidating Anglo Irish Bank Corp. and
Irish Nationwide Building Society.  The two banks failed and were
merged into IBRC in July 2011.  IBRC is tasked with winding them
down and liquidating their assets.  In February, when Irish
lawmakers adopted the Irish Bank Resolution Corp., IBRC was
placed into a special liquidation in the Irish High Court to
complete liquidation and distribution of the two banks' assets.

IBRC's principal asset as of June 2012 was a loan portfolio
valued at some EUR25 billion (US$33.5 billion). About 70 percent
of the loans were to Irish borrowers. Some 5 percent of the
portfolio was under U.S. law, according to a court filing.  Total
liabilities in June 2012 were about EUR50 billion, according
to a court filing.

Most assets in the U.S. have been sold already.  IBRC is involved
in lawsuits in the U.S.

IBRC was granted protection under Chapter 15 of the U.S.
Bankruptcy Code in December 2013.

Kieran Wallace and Eamonn Richardson of KPMG have been named the
special liquidators.

SORRENTO PARK: Fitch Assigns 'B-(EXP)' Rating to Class E Notes
Fitch Ratings has assigned Sorrento Park CLO Limited notes
expected ratings, as:

Class A-1A: 'AAA(EXP)sf'; Outlook Stable
Class A-1B: 'AAA(EXP)sf'; Outlook Stable
Class A-2A: 'AA+(EXP)sf'; Outlook Stable
Class A-2B: 'AA+(EXP)sf'; Outlook Stable
Class B: 'A(EXP)sf'; Outlook Stable
Class C: 'BBB(EXP)sf'; Outlook Stable
Class D: 'BB+(EXP)sf'; Outlook Stable
Class E: 'B-(EXP)sf'; Outlook Stable
Subordinated notes: not rated

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

Sorrento Park CLO Limited is an arbitrage cash flow
collateralized loan obligation (CLO).


'B'/'B-' Portfolio Credit Quality

Fitch expects the average credit quality of obligors in the
portfolio to be in the 'B'/'B-' range.  The agency has public
ratings or credit opinions on 51 of 52 obligors in the identified
portfolio.  The Fitch-weighted average rating factor (WARF) of
the portfolio is 33.2, below the covenanted maximum for the
expected ratings of 36.

High Recovery Expectations

The portfolio will comprise a minimum of 90% senior secured
obligations.  Recovery prospects for these assets are typically
more favorable than for second-lien, unsecured and mezzanine
assets.  Fitch has assigned Recovery Ratings to 98% of the
identified portfolio.  The weighted average recovery rate (WARR)
of the portfolio is 69.2%, above the covenanted minimum for the
expected ratings of 68%.

Limited Interest Rate Risk

Interest rate risk is naturally hedged for most of the portfolio,
as 93% of notes and a minimum of 90% of assets must be floating-

Participation Agreement

At closing, the issuer will enter into a participation agreement
with Blackstone/GSO Corporate Funding Limited (the seller)
regarding the initial portfolio assets.  The seller will grant
the issuer a fixed charge over the initial portfolio assets while
the title is being transferred to the issuer.  A fixed charge
over such financial assets is difficult to establish, given the
lack of control.  However, Fitch received a legal opinion that
the fixed charge in this case is likely to be upheld, given the
control over the accounts of the seller.


Net proceeds from the notes issue will be used to purchase a
EUR500 million portfolio of mostly European leveraged loans and
bonds. The portfolio is managed by Blackstone/GSO Debt Funds
Management Europe Limited.  The reinvestment period is scheduled
to end in 2018.

The transaction documents may be amended subject to rating agency
confirmation or noteholder approval.  Where rating agency
confirmation relates to risk factors, Fitch will analyze the
proposed change and may provide a rating action commentary if the
change has a negative impact on the ratings.  Such amendments may
delay the repayment of the notes as long as Fitch's analysis
confirms the expected repayment of principal at the legal final

If in the agency's opinion the amendment is risk-neutral from a
rating perspective Fitch may decline to comment.  Noteholders
should be aware that confirmation is considered to be given if
Fitch declines to comment.


A 25% increase in the obligor default probability would lead to a
downgrade of up to three notches for the rated notes.  A 25%
reduction in expected recovery rates would lead to a downgrade of
up to four notches for the rated notes.

WINDERMERE X CMBS: Fitch Cuts Rating on Class D Notes to 'Dsf'
Fitch Ratings has downgraded Windermere X CMBS Ltd's class D
notes and affirmed the class A, B, C and E floating-rate notes
due 2018:

EUR497.1 million Class A (XS0293895271) affirmed at 'BBBsf';
Outlook revised to Stable from Negative

EUR51.9 million Class B (XS0293896915) affirmed at 'BBB-sf';
Outlook Negative

EUR59.3 million Class C (XS0293897137) affirmed at 'BBsf';
Outlook Negative

EUR104.1 million Class D (XS0293898457) downgraded to 'Dsf' from
'CCsf; Recovery Estimate (RE) RE 30%

EUR0 million Class E (XS0293898887) affirmed at 'Dsf'; RE 0%

The transaction was originally the securitization of 15
commercial mortgage loans with a combined balance of EUR1,430.7
million.  In August 2014, five loans with an aggregate balance of
EUR708.6 million remained outstanding (plus a EUR1 million
residual claim for the worked-out Tresforte, which is expected to
be written off).


The affirmation reflects the progress of the five loans passing
as expected.  Since the last rating action, the EUR67.7 million
Thunderbird loan has repaid in full, with a further EUR15.6
million of unscheduled principal payments, predominantly from the
Bridge, Fortezza and Lightning Dutch loans, being repaid to the
class A notes.  Two unhedged floating-rate loans (after the
expiry of original hedging) benefit from low interest rates, and
despite one loan having default penalty interest of 2% levied,
interest coverage ratios (ICR) have risen, indicating that
surplus rent is available in greater amounts for redemption or

Some of the tail risk in the portfolio has reduced, with new
valuations received on Italian properties, a significant new
letting for the second-largest loan, and some progress with debt
repayment elsewhere.  Along with continued low interest rates and
the sequential pay rules in force since the first loss allocation
to the junior notes in October 2012, this has led to the revision
of the Outlook on the class A notes to Stable from Negative.  The
downgrade of the class D notes reflects a EUR0.1 million loss.

The Paris office securing the EUR257 million Tour Esplanade loan
has undergone significant borrower-funded capex in preparation
for the arrival of a new tenant, the French government, which now
occupies 40% of the building and will take the entire space on a
long lease (unbroken term of 13.5 years).  Fitch assumed rental
payments to be below the government set threshold of
EUR400/sqm/p.a. Public sources indicates that the proposed asking
rent was approximately EUR408/sqm/p.a with an 18-month rent free
period.  The reletting should ensure the loan's full redemption
at maturity in 2016.

Two loans were taken by parts of the Fortress group, the EUR331.9
million Bridge and EUR101.6 million Fortezza loan.  As expected,
neither repaid at maturity in January 2014.  Bridge is secured by
six office properties in Germany under the supervision of the
special servicer.  Fortezza, which is secured on six office
properties in Italy, had its maturity extended until April 2015.
With low rates, Fortezza has made principal payments of EUR2
million over the last two quarters.  Bridge, albeit on a fixed
rate, has also repaid EUR10.2 million since its default.

Both loans have negative equity despite being fully let, which
suggests that noteholders' will be dependent on wider market
conditions.  The exit strategy for both loans is for an amicable
property sale, and provided conflicts of interest do not emerge,
this should allow for resolution to take place in time for bond
maturity in 2019.  These loans represent the greatest sources of
risk, in Fitch's view, as reflected in the securitized Fitch LTV
of around 120% for both.

Two smaller loans, EUR14.1 million Lightning Dutch and EUR4
million Built, are also in special servicing.  The former is
amortizing from surplus rent pending sale of the underlying
mixed-use Dutch property (comprising a sports business center),
and there is a possibility of full repayment.  The latter is
secured on two retail warehouses in Germany, reduced from five
following the sale of three other properties (the aggregate sales
price being just below the allocated loan amount).  With no
surplus rent available and an LTV above 100%, Fitch expects a
moderate loss from Built.


Recoveries well below Fitch's expectations on Fortezza or Bridge,
or a long delay in resolving these loans, could lead to a
downgrade of the notes.

Fitch estimates 'Bsf' recoveries of approximately EUR640 million.

* IRELAND: Number of Business Bankruptcies Rises to 300
------------------------------------------------------- reports that the number of bankruptcies
registered in Ireland to date have increased eight-fold, when
compared with figures from 2011.

The number of registered bankruptcies stands at 300, with just 35
recorded three years ago, says, citing latest
figures from business risk analyst firm,

Dublin reported the highest number, with 77 bankruptcies,
followed by Kildare, Cork and Wicklow, discloses.

According to, the figures show Dublin reported
the highest number of bankruptcies nationally with 77.  Followed
by 32 in Kildare, 28 in Cork, while Wicklow recorded 22, notes.


KASSA NOVA: S&P Affirms 'kzBB' Issuer Credit Rating
Standard & Poor's Ratings Services has taken various rating
actions on banks and insurance companies in Kazakhstan, Nigeria,
Russia, the Gulf Cooperation Council, and South Africa following
the publication of its revised national scale criteria.  These
rating actions do not reflect any other change in the fundamental
credit quality of the issuers or issues.  The global scale
ratings on these issuers and issues are not affected by the
rating actions.

In the new criteria, S&P articulates the principles on which it
base its national and regional scale credit ratings and how S&P
determines them.  S&P explains how national scale credit ratings
differ from global scale credit ratings and detail the mapping
between the two.

Through S&P's mapping guidelines, it aims to improve transparency
and to provide additional information to investors and other
users of credit information.  The mapping shows the
correspondence between the national scale and the global scale


National Scale Issuer Credit Ratings
                               To                     From
Kazakhstan national scale (kz)
  Kassa Nova Bank JSC          kzBB                   kzBB
  JSC Eurasian Bank            kzBBB                  kzBBB+

Nigeria national scale (ng)
  FBN Holding Plc              ngBBB-                 ngBBB
  Fidelity Bank PLC            ngBBB                  ngBBB+
  First City Monument Bank     ngBBB                  ngBBB+

Russia national scale (ru)
  Element Leasing LLC          ruBBB+                 ruBBB+
  Sovcombank ICB LLC           ruA-                   ruBBB+
  Nota Bank                    ruA-                   ruA-
  Baltic Financial Agency Bank ruA-                   ruA-
  InterProgressBank            ruBBB                  ruBBB
  LLC CB Koltso Urala          ruBBB                  ruBBB
  Bank Soyuz                   ruA-                   ruA
  Ingosstrakh Insurance Co.    ruAAA                  ruAA+

Gulf Cooperation Council Regional Scale (gc)
Mediterranean & Gulf Cooperative
Insurance and Reinsurance Co.
                               gcAAA                  gcAA+
Saudi Re for Cooperative
Reinsurance Co.
                               gcAA+                  gcAA

South Africa national scale   (za)
  AIG Life South Africa Ltd.   zaAAA                  zaAA+
  AIG South Africa Ltd.        zaAAA                  zaAA+
  Allianz Global Corporate
  and Specialty South Africa
  Ltd.                         zaAAA                  zaAA+
  Eqstra Holdings Ltd.         zaBBB+                 zaBBB+
  FirstRand Ltd.               zaA+                   zaA
  Hannover Life Reassurance
  Africa Ltd.                  zaAAA                  zaAA+
  Hannover Reinsurance Africa
  Ltd.                         zaAAA                  zaAA+
  Santam Ltd.                  zaAAA                  zaAA+

National Scale Issue Ratings
Kazakhstan national scale (kz)
Kaspi Bank JSC
  KZT10 bil var/fixed-rate
  med-term nts series 3
  due 02/07/2023               kzBBB           kzBB+

  KZT10 bil var/fixed rate
  med-term nts due 07/19/2021  kzBBB           kzBB+

  KZT100 bil med-term note
  prog 06/28/2011: sub         kzBBB           kzBB+

Nurbank JSC
  KZT5 bil 7.50% bnds due
  05/28/2016                   kzBB-           kzB
  KZT30 bil med-term note prog
  12/10/2004: sub              kzBB-           kzB

South Africa
FirstRand Bank Ltd.
  ZAR1.727 bil sub nts,
  subject to mandatory
  write-off upon the
  occurrence of a trigger
  event, due June 2, 2024      zaA             zaBBB+

  ZAR148 mil sub nts, subject
  to mandatory write-off upon
  the occurrence of a trigger
  event, due June 2, 2026      zaA             zaBBB+

  ZAR125 mil sub nts, subject
  to mandatory write-off upon
  the occurrence of a trigger
  event, due June 2, 2026      zaA             zaBBB+

Macquarie Securities South Africa Ltd.
  ZAR10 bil MTN/short-term nts
  prog 08/13/2010: sr unsecd
  (Sponsor: Standard Bank of
  South Africa Ltd.
  (unsolicited ratings),
  Guarantor:  Macquarie Group
                                 zaAA+           zaAA

  ZAR165 mil 8.485% nts ser MQB02
  due 05/31/2017
  (Guarantor: Macquarie Group
                                 zaAA+           zaAA

  ZAR400 mil fltg rate med-term
  nts ser 52 due 11/14/2014
  (Guarantor: Macquarie Group
                                 zaAA+           zaAA

  ZAR500 mil fltg rate nts ser
  MQB01 due 05/31/2015
  (Guarantor: Macquarie Group
                                 zaAA+           zaAA


S&B INDUSTRIAL: Moody's Affirms 'B3' CFR; Outlook Positive
Moody's Investors Service has affirmed the B3 corporate family
rating (CFR) and the B2-PD probability of default rating (PDR) of
S&B Minerals Finance S.C.A. (S&B or the company). Moody's has
also affirmed the B3 rating of the EUR275 million senior secured
notes maturing in 2020 issued by the company and S&B Industrial
Minerals North America, Inc. as co-issuers. The outlook on the
ratings changes to positive from stable.

Ratings Rationale

The affirmation of the CFR at B3 reflects Moody's view that S&B's
credit profile is supported by its leading position globally for
the production of continuous casting fluxes (CCF), perlite and
wollastonite, and its number 2 position for bentonite with a
limited number of competitors and a good degree of customer
diversification. S&B's strategy to increasingly diversify its
revenues away from mining into more "value added" downstream
activities is also credit positive. These activities are
typically higher margin than upstream operations and increase
switching costs for customers. This well established business
model allows the company to extract relatively high EBITDA
margin, in the region of 18% (based on Moody's adjusted EBITDA
figure) under the relatively stable conditions in S&B's main
reference markets which prevailed during the last 12 months. The
rating assumes that S&B is able to maintain or even improve its
operating profitability over the coming quarters, as a result of
ongoing management focus to develop the more profitable
downstream business, and also considering that Moody's expects
the outlook on the main end user sectors (steel, construction,
automotive) to remain stable over the next 12 to 18 months.

The rating remains constrained by the company's small scale, with
revenues of EUR441 million in 2013, and a rather high degree of
asset concentration in Greece (Caa1, stable), where the majority
of mining sites are located. A further negative credit
consideration is the high volatility of the company's historical
performance, due to the cyclicality of its main end markets,
namely steel, automotive, iron foundry and construction. Given
such degree of volatility, Moody's considers the adjusted
leverage ratio, at 4.4x on a last twelve months to June 2014
basis, as high, and limiting the financial flexibility of the
company in a potential downturn.

The positive outlook reflects Moody's view that S&B is more
strongly positioned within its B3 CFR, as management is
delivering on its business plan and is taking steps towards
improving the company's credit metrics and reducing leverage
towards 4x or lower, mainly by focusing on profitable growth, via
both organic and bolt-on M&A initiatives. Furthermore, the
company's exposure to Greece (mainly in terms of mining asset) is
a lesser concern now than before, after Moody's upgraded the
sovereign rating on the country's government bonds to Caa1 from
Caa3, and raised the local and foreign-currency country ceilings
for long-term debt and deposits to Ba3 from B3 on August 1st,

Positive pressure could build if S&B manages to further improve
the Moody's adjusted EBITDA margin sustainably above 20% and to
reduce the adjusted leverage ratio to 3.5x on a sustained basis,
and continues to generate positive free cash flows, thus
preserving an adequate liquidity position at all times.

Conversely, negative rating pressure could develop if (1) the
company's adjusted leverage ratio increases to 5.0x; (2) the
company experiences pressure on its EBITDA margin; (3) its
liquidity position deteriorates due to weak performance or
significant spend on acquisitions; or (4) Moody's observes a
material deterioration in the political and economic environment
in Greece where a significant portion of the company's mining
assets are located.

The principal methodology used in this rating was Global Mining
Industry published in August 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.

S&B is a provider of mineral-based industrial solutions. Its main
activities include the mining, processing, distribution and
supply of industrial minerals. In 2013, S&B operated 31 mines, 51
processing facilities and 28 warehouses and distribution centers
in 22 countries, and reported revenues of EUR441 million. The
company is owned by the Kyriacopoulos family (61%) and the
private equity investor Rh"ne Capital (39%).


VAN LANSCHOT: Fitch Affirms 'BB+' Rating on Tier 1 Securities
Fitch Ratings has affirmed the Netherlands-based F. Van Lanschot
Bankiers N.V.'s Long-term Issuer Default Rating (IDR) at 'A-' and
its Viability Rating (VR) at 'a-'.  The Outlook on the Long-term
IDR is Negative.


Van Lanschot's IDRs and senior debt ratings are driven by the
bank's intrinsic creditworthiness as reflected in its VR.  Van
Lanschot's good capitalization strongly supports its VR at 'a-'
as it allows the bank to buy time to strengthen its earnings and
asset quality profile.  The VR incorporates the bank's
established, but niche and regional, franchise in wealth
management and merchant banking and Fitch's expectation that its
management will be able to execute on its strategy of
transforming the business mix into one more focused on private
banking and wealth management.

The VR is further supported by the bank's robust and balanced
funding profile and sound liquidity management.  Van Lanschot's
funding mix is dominated by customer deposits, complemented by a
demonstrated ability to issue mainly secured but also unsecured
debt securities even during the past turbulent years.

The Negative Outlook on the bank's Long-term IDR reflects
protracted weaknesses in asset quality and profitability, despite
improving trends in the latter.  Marked improvement in these
factors in the short and medium-term for the bank will help the
bank avoid being downgraded into the 'BBB' category.

Van Lanschot is in the process of executing on its strategic plan
implemented in May 2013, which essentially consists of refocusing
on wealth management and of strengthening the bank's balance
sheet, notably by running-down the commercial real estate (CRE)
loans (EUR2 billion at end-June 2014) and part of its corporate
lending exposures (a total EUR2.4 billion at the same date).
Until these exposures are removed from the balance sheet, they
will remain a drag on the bank's profitability and risk profile.

Profitability remains low for the rating level but should
continue its gradual improvement, in Fitch's opinion.  The rise
in profitability has so far been driven by cost reduction
initiatives and a decrease in loan impairment charges (LICs).
Revenues from net fees and commissions and net interest income
have been broadly flat and further profitability improvements are
expected to be mainly driven by raising these earnings streams.
They will be supplemented by additional cost reduction, notably
as IT and marketing expenses are currently inflated by the
investments needed to deploy the new strategy.  Fitch believes
net interest income will likely remain under pressure from the
loan book reduction and the current low interest-rate environment
and flattening yield curve.  Increasing net fees and commissions
is, therefore, largely dependent on growth in assets under
management (AUM), which Fitch believes is challenging but

Following two years of recession in the Netherlands, Van
Lanschot's asset quality has deteriorated and loan quality
metrics are weaker than similarly rated peers.  The strains
experienced in the loan book have eased in line with improving
economic conditions, as demonstrated by receding LICs, but they
still represented an elevated annualized 0.57% of average gross
loans in 1H14.  Half of the bank's lending consists of solid
domestic residential mortgage loans (1.8% impaired loans ratio at
end-June 2014), which supports the overall acceptable impaired
loans ratio of 5.1%, taking into account that the domestic
economy recently reached its trough and the recovery is feeble,
and the reduction of the loan book.  However, in common with
other Dutch banks, loans-to-value are high and the majority of
the book consists of interest-only lending.  The bank's SME and
CRE loan books are of weaker quality, but in line with similar
portfolios of Dutch peers.  Fitch believes the SMEs and CRE books
this year will continue to generate higher LICs than 'through-
the-cycle' levels, given lagging effects of the recession and a
structural oversupply of CREs in the Netherlands.


The Negative Outlook on the Long-term IDR could be revised to
Stable if the bank achieves the following: (1) meeting its
underlying profitability targets (excluding capital gains on its
investment portfolio and/or private equity stakes), (2) growing
assets under management from positive net new money contributions
(rather than market movements) in line with a planned increase in
net fees and commissions to support profitability but also to
demonstrate the value of the bank's franchise and successful
strategic decisions, (3) reducing the corporate loan book's
assets and RWAs by around 10% annually, excluding benefits from
model refinements, and (4) stabilization in asset quality most
likely demonstrated by no further material increase, if any, in
the amount of impaired loans, by retention of coverage ratios and
by a sustained reduction of loan impairment charges.

A failure to achieve any of the above over the next 12 months,
the ratings would mostly likely be downgraded (most likely
following publication of 1H15 earnings).

Fitch does not expect any upward rating momentum in the medium
term, given the abovementioned constraints.


Van Lanschot's Support Rating (SR) and Support Rating Floor (SRF)
reflect Fitch's view that the provision of state support to the
bank, if required, while possible, cannot be relied upon.  This
primarily reflects Van Lanschot's small size in the Dutch banking
sector, its limited contribution to financing the domestic
economy and its focus on private banking.

Fitch does not envisage any changes to Van Lanschot's SR nor SRF,
given its ownership structure, the small size of the bank, its
business mix and the clear political intention ultimately to
reduce implicit state support for financial institutions in the
European Union.


Van Lanschot's subordinated debt securities are rated one notch
below its VR to reflect their loss severity compared with senior
unsecured debt.  Van Lanschot's innovative Tier 1 securities
(NL0000117745, issued in 2005) are rated four notches below its
VR to reflect the high loss severity of these securities (two
notches from the VR) as well as high risk of non-performance
(additional two notches) relative to the risks captured in the
bank's VR.

The ratings on these securities are broadly sensitive to changes
in Van Lanschot's VR.

The rating actions are:

F. Van Lanschot Bankiers N.V.

Long-term IDR: affirmed at 'A-'; Outlook Negative
Short-term IDR: affirmed at 'F2'
Viability Rating: affirmed at 'a-'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
Senior debt: affirmed at 'A-'/ 'F2'
Dated subordinated debt: affirmed at 'BBB+'
Innovative Tier 1 securities (NL0000117745): affirmed at 'BB+'


NORWEGIAN ENERGY: May Not Meet Covenants After Oil Field Shutdown
Mikael Holter at Bloomberg News reports that Norwegian Energy Co.
ASA (Noreco) said it may not meet financial commitments at the
end of the year because of a shutdown at its Huntington oil field
this month.

According to Bloomberg, Noreco said in a statement on Oct. 1 the
company may need to write down reserves at the Huntington and
Oselvar fields, resulting in impairments of about NOK700 million
(US$109 million) and NOK100 million, respectively.  Noreco said
that Chairman Morten Garman resigned along with fellow board
member Erik Henriksen, Bloomberg relates.

"Noreco's recent operational and financial update looks like a
nightmare," Bloomberg quotes Teodor Sveen Nilsen, an analyst at
Swedbank AB, as saying in an e-mailed note to clients.  "We do
not rule out that the value of the company's equity virtually is
lost and we believe there is a very high probability for a
substantial financial restructuring."

Noreco bondholders approved a NOK3.1 billion refinancing plan as
late as November as the company was facing insolvency following
shutdowns at fields off the U.K., Norway and Denmark, Bloomberg

"This new information regarding an extended production shutdown
on Huntington creates uncertainty about the company's ability to
meet its financial commitments and covenants towards the end of
2014," Bloomberg quotes the company as saying in a statement.
The Huntington development will "impact cash balances through
2015 and onwards."

The company said it is examining "mitigating measures" with
advisers Arctic Securities ASA and Pareto Securities AS to secure
a sustainable financing solution, Bloomberg relays.  It's also
working with partners at its oil fields to improve production
levels, Bloomberg notes.

Norwegian Energy Company ASA, an independent oil and gas company,
focuses on the exploration, development, and production in the
North Sea region.  It has a portfolio of 48 exploration and
production licenses in Norway, Denmark, and the United Kingdom.
The company was founded in 2005 and is headquartered in
Stavanger, Norway.


HMS HYDRAULIC: S&P Retains 'B' Global Scale CCR; Outlook Stable
Standard & Poor's Ratings Services said that it lowered to 'ruA-'
from 'ruA' its long-term Russia national scale issuer rating on
Russia-based pump maker HMS Hydraulic Machines & Systems Group
PLC (HMS).  At the same time, S&P lowered to 'ruBBB+' from 'ruA-'
its long-term Russia national scale issue rating on two senior
unsecured notes issued by HMS' subsidiary, Hydromashservice CJSC.
S&P then withdrew these ratings at the issuer's request.

The rating actions are the result of the publication of S&P's
revised national scale criteria and mapping guidelines.

The rating actions do not affect S&P's long-term global scale
corporate credit rating of 'B' on HMS.  The outlook remains
stable.  There is also no change in S&P's global scale long-term
issue rating of 'B-' and '5' recovery rating on the above-
mentioned notes.  This is because S&P has not changed its view of
HMS' fundamental credit quality.

The long-term Russia national scale issuer and issue ratings were
withdrawn at the issuer's request.

IMONEYBANK: Moody's Lowers National Scale Rating to ''
Moody's Interfax Rating Agency has downgraded national scale
ratings (NSR) of iMoneyBank to from The NSRs
carry no specific outlooks.

Ratings Rationale

The downgrade reflects increased vulnerability of iMoneyBank's
credit profile amid the deterioration of the domestic operating
environment and the recently sharp decline in the bank's loan
origination volumes. The bank's already weak loss absorption
capacity -- as reflected in very weak capital adequacy metrics
and weak earnings -- is at a high risk of further deterioration
because of (1) the expected decline in revenue; and (2) much
tighter credit conditions in recent quarters.

As at year-end 2013, iMoneyBank reported a very low equity-to-
assets ratio of 5.0% (under audited IFRS), a decline from 7.2% at
year-end 2012. Earnings also declined as the bank reported a loss
of RUB96 million in 2013 after a net income of RUB402 million in
2012. The deterioration of iMoneyBank's loss-absorption buffers
occurred amid the very rapid growth in loan origination. The
bank's gross loan book more than doubled to RUB36.1 billion in
2013 from RUB16.5 billion in 2012.

Moody's Interfax notes a deterioration in credit conditions in
Russia's consumer lending segment, as reflected in the sector's
weaker asset quality performance and lower credit demand from
creditworthy customers. Based on the bank's data, Moody's
Interfax expects that the volume of iMoneyBank's loan origination
will be halved in 2014 compared to 2013. This contraction will
materially reduce the bank's major revenue source, i.e.,
commission income received predominantly from insurance
contracts. This income accounted for more than half of the bank's
pre-provision revenue in 2013.

Given the bank's rapid loan growth in the past and recently
increased credit risks in the consumer lending segment, Moody's
Interfax expects iMoneyBank's credit losses to remain at a high
level in 2014 despite the bank's recently diminished origination
volumes and its recent strategy to reduce credit risks. As a
result, the rating agency assesses a very high probability that
iMoneyBank's will continue to report losses. Therefore, the
already low capital buffers are at a high risk of further

What Could Move The Ratings Up/Down

-- iMoneyBank's ratings have limited upside potential.

-- iMoneyBank's ratings could be further downgraded in case of
    further deterioration in capital adequacy metrics.

Principal Methodology

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

Headquartered in Moscow, Russia, iMoneyBank reported total
(audited IFRS) assets of RUB40.7 billion and shareholder equity
of RUB2.0 billion at 31 December 2013. In 2013 the bank reported
a loss of RUB96 million.

Moody's Interfax Rating Agency's National Scale Ratings (NSRs)
are intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market participants
to better differentiate relative risks. NSRs differ from Moody's
global scale ratings in that they are not globally comparable
with the full universe of Moody's rated entities, but only with
NSRs for other rated debt issues and issuers within the same
country. NSRs are designated by a ".nn" country modifier
signifying the relevant country, as in ".ru" for Russia. For
further information on Moody's approach to national scale
ratings, please refer to Moody's Rating Methodology published in
June 2014 entitled "Mapping Moody's National Scale Ratings to
Global Scale Ratings".

About Moody's and Moody's Interfax

Moody's Interfax Credit rating Agency (MIRA) specializes in
credit risk analysis in Russia. MIRA is a joint-venture between
Moody's Investors Service, a leading provider of credit ratings,
research and analysis covering debt instruments and securities in
the global capital markets, and the Interfax Information Services
Group. Moody's Investors Service is a subsidiary of Moody's
Corporation (NYSE: MCO).

IMONEYBANK: Moody's Cuts Deposit Rating to 'Caa1'; Outlook Neg.
Moody's Investors Service has downgraded iMoneyBank's long-term
deposit ratings to Caa1 from B3. The bank's standalone bank
financial strength rating (BFSR) was also downgraded to E from E+
and the corresponding baseline credit assessment (BCA) was
lowered to caa1 (from b3). Moody's has also affirmed the bank's
Not Prime short-term deposit ratings. The outlook on the bank's
long-term ratings is negative while the standalone E BFSR carries
a stable outlook.

Moody's assessment of the issuer's ratings is largely based on
iMoneyBank's audited financial statements for 2013, regulatory
filings as well as information received from the bank.

Ratings Rationale

The downgrade reflects increased vulnerability of iMoneyBank's
credit profile amid the deterioration of the domestic operating
environment and the recently sharp decline in the bank's loan
origination volumes. The bank's already weak loss absorption
capacity -- as reflected in very weak capital adequacy metrics
and weak earnings -- is at a high risk of further deterioration
because of (1) the expected decline in revenue; and (2) much
tighter credit conditions in recent quarters.

As at year-end 2013, iMoneyBank reported a very low equity-to-
assets ratio of 5.0% (under audited IFRS), a decline from 7.2% at
year-end 2012. Earnings also declined as the bank reported a loss
of RUB96 million in 2013 after a net income of RUB402 million in
2012. The deterioration of iMoneyBank's loss-absorption buffers
occurred amid the very rapid growth in loan origination. The
bank's gross loan book more than doubled to RUB36.1 billion in
2013 from RUB16.5 billion in 2012.

Moody's notes a deterioration in credit conditions in Russia's
consumer lending segment, as reflected in the sector's weaker
asset quality performance and lower credit demand from
creditworthy customers. Based on the bank's data, Moody's expects
that the volume of iMoneyBank's loan origination will be halved
in 2014 compared to 2013. This contraction will materially reduce
the bank's major revenue source, i.e., commission income received
predominantly from insurance contracts. This income accounted for
more than half of the bank's pre-provision revenue in 2013.

Given the bank's rapid loan growth in the past and recently
increased credit risks in the consumer lending segment, Moody's
expects iMoneyBank's credit losses to remain at a high level in
2014 despite the bank's recently diminished origination volumes
and its recent strategy to reduce credit risks. As a result, the
rating agency assesses a very high probability that iMoneyBank's
will continue to report losses. Therefore, the already low
capital buffers are at a high risk of further erosion, reflected
in the negative outlook assigned to the bank's deposit ratings.

What Could Move The Ratings Up/Down

iMoneyBank's ratings have limited upside potential, as captured
in the negative outlook. The rating outlook could be changed to
stable if the bank eliminates risks of capital erosion by
improving its profitability.

iMoneyBank's ratings could be further downgraded in case of
further deterioration in capital adequacy metrics.

Principal Methodology

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

Headquartered in Moscow, Russia, iMoneyBank reported total
(audited IFRS) assets of RUB40.7 billion and shareholder equity
of RUB2.0 billion at December 31, 2013. In 2013 the bank reported
a loss of RUB96 million.

U N I T E D   K I N G D O M

CAIP: Goes Into Administration, Cuts 110 Jobs
Liverpool Echo reports that Daresbury company Caip has gone into
administration with the loss of 110 jobs.

Caip employs a total of 117 staff at four sites, but only seven
have been retained by administrators to manage the wind down of
operations, according to Liverpool Echo.

Paul Flint -- -- and Brian Green -- -- from KPMG's restructuring practice in
Manchester were appointed joint administrators.

Liverpool Echo notes that following the appointment of the joint
administrators, the business ceased trading and 110 staff were
made redundant.

"The company has experienced a number of delays on contracts with
key customers which has had a significant impact on its cash flow
which has contributed to its failure," the report quoted Mr.
Flint as saying.

Caip's most recent figures showed a turnover of GBP25.4 million,
an improvement on the GBP17.8 million level in 2012, and an
GBP829,800 pre-tax profit.

Caip is a technical engineering firm that provides services to
the telecoms, renewable energy and construction sectors.  Caip is
headquartered in Daresbury, with smaller sites in Northampton,
Lymington and Didcot.

FERGUSON MARINE: Secures GBP12 Million Ferry Contract
The Scotsman reports that Ferguson Marine Engineering has won its
first ferry building contract since being rescued from closure
earlier this month.

Ferguson Marine Engineering was bought earlier this month by
Clyde Blowers Capital, owned by billionaire Jim McColl, when it
went into administration in August after experiencing
"significant cash-flow pressure," according to The Scotsman.

The report notes that it announced it had won a GBP12.3 million
contract from the Scottish Government to build a third hybrid
ferry for Caledonian Maritime Assets Limited (CMAL), the partner
company of CalMac Ferries.

The yard has previously built two other hybrid ferries -- the MV
Hallaig and MV Lochinvar -- for CalMac.

The report notes that the contract will secure jobs for 80 people
in the Port Glasgow and Inverclyde area with the renamed Ferguson
Marine Engineering Limited (FMEL).

The new vessel is expected to be launched in spring 2016, before
entering service in autumn of 2016.

The report notes that Deputy First Minister Nicola Sturgeon said
the new contract was a "real vote of confidence in shipbuilding
on the Clyde and a significant step forward for Ferguson Marine

"This investment not only provides support to the shipbuilding
industry on the Clyde but also underlines our commitment to
investing in cutting-edge technology to make our ferries
sustainable and reliable," the report quoted Minister Sturgeon as

"I had the privilege to launch the first of these ferries, the MV
Hallaig, and look forward to seeing this latest vessel," Minister
Sturgeon added.

The report discloses that the contract comes less than two weeks
after Mr. McColl stepped in to save the ailing shipyard,
announcing an GBP8 million investment program to upgrade
facilities at the Port Glasgow site with a view to taking on oil
and gas and renewable energy fabrication contracts.  Mr. McColl
also said the workforce would be expanded, potentially reaching
300 in the long term, the report notes.

LUDGATE FUNDING: Fitch Affirms 'CC' Ratings on 7 Note Classes
Fitch Ratings has downgraded seven and affirmed 15 tranches of
the Ludgate (LG) series.

The Ludgate series is a securitization of near prime and non-
conforming residential mortgages originated by Freedom Funding
Ltd (LG 2006 and 2007) and Wave Lending Limited (LG 2008).


Downgrade Driven by Criteria Change

The downgrades follow Fitch's assessment of the credit
enhancement (CE) available to withstand its updated criteria
assumptions. Under the new assumptions, mortgage pools originated
around the peak of the housing market, and in particular combined
with adverse features such as self-certified loans, high
proportions of interest-only loans and/or loans granted to
borrowers with adverse credit histories tend to have higher
default assumptions and expected losses.  For this reason, the
criteria change has had a greater effect on loans originated in
2006 and 2007, which account for nearly 50% of LG 2006's and
almost 100% of LG 2007 and 2008's portfolios.

Healthy Asset Performance

The performance across all transactions is in line with the
general trend for other UK non-conforming peers, as current low
interest rates continue to support borrower affordability.  Loans
in arrears by more than three months have ranged between 2.4% (LG
2007) and 6% (LG 2008) of the outstanding collateral balance.
While limited losses have been realized in the past year for all
three transactions, the higher weighted average loss severities
for LG 2007 and 2008 (40%) compared with LG 2006 (30%) can be
attributed to the vintage of loans.

Basis Risk Unhedged

LG 2006 is not hedged against basis risk between Libor paid on
the notes and BBR received on the loans.  At the end of 2007 and
throughout 2008, the BBR-LIBOR spread differential was at its
peak and the structure saw reduced cash flows which contributed
to reserve fund draws.  Although the reserve fund has since been
replenished to its target with available excess spread, the
agency applies stresses to account for this risk, which combined
with further stresses applied as a result of the updated
criteria, contributed to the downgrade of LG 2006's class B
notes.  The CE available to the other rated tranches is
sufficient to sustain these rating stresses.


With 100% borrowers on BBR-linked mortgages in all three
transactions, an increase in BBR could lead to performance
deterioration of the underlying assets given the weaker profile
of non-conforming borrowers in these pools.  Should defaults and
subsequent losses increase beyond Fitch's standard assumptions,
this could lead to downgrades of the notes.

There is no basis rate swap in Ludgate 2006.  If the BBR-LIBOR
spread differential increases beyond Fitch's assumptions, there
could be a reduction in cash flows, which could contribute to
reserve fund draws and reduce CE, leaving the structure exposed
to potential downgrades.

The rating actions are:

Ludgate Funding Plc Series 2006 FF1 (LG 2006):

Class A2a (ISIN XS0274267862): affirmed at 'AAAsf'; Outlook

Class A2b (ISIN XS0274271203): affirmed at 'AAAsf'; Outlook

Class Ba (ISIN XS0274268241): downgraded to 'Asf' from 'AAsf';
Outlook Stable

Class Bb (ISIN XS0274271898): downgraded to 'Asf' from 'AAsf';
Outlook Stable

Class C (ISIN XS0274272359): affirmed at 'BBsf'; Outlook Stable

Class D (ISIN XS0274272862): affirmed at 'CCCsf'; Recovery
Estimate (RE) 95%

Class E (ISIN XS0274269645): affirmed at 'CCCsf'; RE 0%

Ludgate Funding Plc Series 2007 FF1 (LG 2007):

Class A2a (ISIN XS0304503534): affirmed at 'AAAsf'; Outlook

Class A2b (ISIN XS0304504003): affirmed at 'AAAsf'; Outlook

Class Ma (ISIN XS0304504698): downgraded to 'Asf' from 'AAsf';
Outlook Stable

Class Mb (ISIN XS0304505232): downgraded to 'Asf' from 'AAsf';
Outlook Stable

Class Bb (ISIN XS0304508681): downgraded to 'BBBsf' from 'Asf';
Outlook Stable

Class Cb (ISIN XS0304509739): affirmed at 'BBsf'; Outlook Stable

Class Da (ISIN XS0304510158): affirmed at 'CCCsf'; RE 95%

Class Db (ISIN XS0304512105): affirmed at 'CCCsf'; RE 95%

Class E (ISIN XS0304515546): affirmed at 'CCsf'; RE 0%

Ludgate Funding Plc Series 2008-W1 (LG 2008)

Class A1 (ISIN XS0353588386): affirmed at 'AAAsf'; Outlook

Class A2b (ISIN XS0353589608): downgraded to 'Asf' from 'AAsf';
Outlook Stable

Class Bb (ISIN XS0353591505): downgraded to 'BBBsf' from 'Asf';
Outlook Stable

Class Cb (ISIN XS0353594434): affirmed at 'BBsf'; Outlook Stable

Class D (ISIN XS0353595597): affirmed at 'CCCsf'; RE 95%

Class E (ISIN XS0353600348): affirmed at 'CCsf'; RE 0%

MF GLOBAL: October 10 Claims Filing Deadline Set
The Administrators of MF Global UK Limited (In Special
Administration) intend to make a final distribution to client
money claimants with agreed client money claims.

Clients have until October 10, 2014 to submit client money

The Administrators also intend to make a fourth interim
distribution to creditors with agreed creditor claims.

Creditors have until October 31, 2014 to submit creditor claims.

The Administrators intend to declare and make the final
distribution of client money and the fourth interim distribution
to creditors within the period of two months from October 31,
2014, the last date of proving.

For further information on the intended distribution and the
consequences of missing the distribution, please see the
Administrators' notice to all known creditors and clients and the
Financial Conduct Authority which is available to be viewed or
downloaded from the Administrators' Web site at

Claims may be submitted using client money or creditor claims
forms, respectively, or by returning signed settlement agreements
to the Administrators.  Copies of the relevant claim forms and
instructions explaining how to submit them are available in the
"Creditors and Clients" section of the Administrators' Web site.

For further information on the special administration of MFGUK
and the intended distributions, please see the Administrators'
Web site or contact:

  (i) by email: or

(ii) by post: MF Global UK Limited (in special administration),
               c/o KPMG LLP
               8 Salisbury Square
               London EC4Y 8BB, United Kingdom; or

(iii) by telephone: +44(0)20 7785 0308.

The MFGUK special administration proceedings are being conducted
in The High Court of Justice, Chancery Division.

MF Global UK Limited's registered office is at:

          c/o KPMG LLP
          8 Salisbury Square
          London EC4Y 8BB
          United Kingdom

Its principal trading address was:

          5 Churchill Place
          Canary Wharf
          London E14 5HU
          United Kingdom

The Administrators are Richard Heis, Michael Pink and Richard
Fleming of KPMG LLP.  They were appointed Administrators on
October 31, 2011.

The Administrators can be reached at:

         KPMG LLP
         8 Salisbury Square
         London, EC4Y 8BB
         United Kingdom

PARK ROW: October 31 Claims Submission Deadline Set
Creditors of Park Row Group Limited (In Creditors' Voluntary
Liquidation) have until October 31, 2014 to send their full names
and addresses (and those of their Solicitors, if any), together
with full particulars of their debts or claims to Ian C. Oakley-
Smith and Robert Nicholas Lewis of PricewaterhouseCoopers LLP,
the company's Joint Liquidators, at:

          Benson House
          33 Wellington Street
          Leeds, LS1 4JP
          United Kingdom

Messrs. Oakley-Smith and Lewis were appointed Joint Liquidators
of the company on April 25, 2014.

The Joint Liquidators can be reached at:

          PricewaterhouseCoopers LLP
          7 More London Riverside
          London, SE1 2RT
          United Kingdom

Further information is available from Nadia Mann at the offices
of PricewaterhouseCoopers LLP at

PREFERRED RESIDENTIAL 06-1: S&P Raises Ratings on 2 Notes to BB
Standard & Poor's Ratings Services raised its credit ratings on
Preferred Residential Securities 06-1 PLC's class D1a and D1c
notes.  At the same time, S&P has affirmed its ratings on the
class A2a, A2b, A2c, B1a, B1c, C1a, C1c, E1c, and FTc notes.

The rating actions follow S&P's credit and cash flow analysis
using the most recent collateral pool cut and investor reports of
June 2014, and the application of S&P's relevant criteria, and
the July 2014 updates to the liquidity facility.

In the Dec. 2012 investor report, the servicer (Acenden Ltd.)
updated how it reports arrears to include amounts outstanding,
delinquencies, and other amounts owed.  Other amounts owed
include, among other items, arrears of fees, charges, costs,
ground rent, and insurance. Delinquencies include principal and
interest arrears on the mortgages, based on the borrowers'
monthly installments.  Amounts outstanding are principal and
interest arrears, after payments by borrowers are first allocated
by the servicer to other amounts owed.  In this transaction, the
servicer first allocates any arrears payments to other amounts
owed, and then interest and principal amounts.  From a borrowers'
perspective, the servicer first allocates any arrears payments to
interest and principal amounts, and then to other amounts owed.
This difference in the servicer's allocation of payments for the
transaction and the borrower results in amounts outstanding being
greater than delinquencies.

In July 2014, noteholders accepted a proposal by the liquidity
facility provider (Lloyds Bank PLC) to amend the documented
required rating and the amortization conditions of the liquidity
facility.  Previously, the facility had remained at its target
level of GBP27,648,000, as the amortization conditions were not
met.  This meant that due to paydown of the collateral balance,
the liquidity facility represented 29.49% of the collateral
balance outstanding.  Furthermore, as Lloyds Bank did not meet
the documented required rating, the facility was drawn to cash.
The facility documentation has now been amended so that it can
amortize to 12% of the outstanding balance.  Following the
required rating's change to 'A-1', the facility has been returned
to Lloyds Bank.  This should reduce the liquidity facility costs
for the transaction structure.

The pool factor (the outstanding collateral balance as a
proportion of the original collateral balance) is 20.95%.
Acenden uses amounts outstanding to calculate the 90+ days
arrears trigger.  In the transaction, 90+ days amounts
outstanding (including repossessions) have risen to 35.49%, which
breaches pro rata conditions, which allow for pro rata repayment
of the notes when the 90+ days amounts outstanding is below
22.5%.  The transaction has therefore been paying down
sequentially, and S&P believes that the transaction will continue
to pay in this way. Total amounts outstanding have increased to
43.23% of the pool, up from 33.89% in April 2012.

With cumulative losses at 3.45% (the threshold is 1.50%), and
amounts outstanding continuing to increase, the transaction's
reserve fund will not amortize.  S&P has incorporated this
assumption, and the fact that the transaction will pay down
sequentially, in S&P's cash flow analysis.  These assumptions are
the main reasons for the improving cash flow results of the
senior classes of notes, in S&P's view.  The transaction already
benefits from increased available credit enhancement compared
with S&P's April 30, 2012 review, due to a nonamortizing reserve
fund.  In addition, with further sequential amortization going
forward, available credit enhancement for the senior notes is
likely to increase further.

Expected credit    WAFF (%)      WALS (%)        loss (%)
AAA                 44.14        50.88           22.46
AA                  38.18        44.83           17.12
A                   32.58        35.40           11.53
BBB                 28.27        30.00            8.48
BB                  23.19        25.87            6.00
B                   20.94        22.76            4.77

WAFF -- Weighted-average foreclosure frequency.
WALS -- Weighted-average loss severity.

"Our current weighted-average foreclosure frequency (WAFF)
assumptions have decreased, because we used delinquencies (as
opposed to amounts outstanding) in this review.  Furthermore, the
collateral's seasoning has increased since our previous review.
However, as the transaction has been underperforming our U.K.
nonconforming residential mortgage-backed securities (RMBS)
index, we have projected arrears in our analysis, given the
prospect of interest rate rises in early 2015.  Our weighted-
average loss severity (WALS) assumptions have increased because
we expect potential losses to be higher, given the servicer's
method of allocation of payments of other amounts owed.  Overall,
this has increased our expected losses since our last review,"
S&P said.

However, the increase in expected losses is offset by the
increased available credit enhancement.  Furthermore, the reduced
costs from the reduced liquidity facility and the sequential
payment for life has resulted in use affirming S&P's ratings on
the class A2a, A2b, A2c, B1a, B1c, C1a, C1c, E1c, and FTc notes.

For the class D1a and D1c notes, the liquidity facility decrease
to 12.00% from 29.49% of the outstanding collateral balance, and
the reduction in liquidity facility costs, have improved S&P's
cash flow results for these classes of notes.  S&P has therefore
raised to 'BB (sf)' from 'B (sf)' its ratings on these classes of

The class FTc notes have paid down significantly since S&P's last
review, to GBP5.6 million from GBP7.7 million.  In addition, with
the prospect of decreased liquidity facility fees, excess spread
may further increase.  However, it still remains above the
closing amount (GBP4.2 million).  As the transaction's collateral
performance has yet to improve significantly, S&P has affirmed
its 'CCC (sf)' rating on the class FTc notes.

The bank account is not in line with S&P's current counterparty
criteria and has breached its contractual replacement obligation.
Accordingly, S&P's ratings on the notes in this transaction are
capped at its 'A' long-term issuer credit rating on Barclays Bank

S&P's credit stability analysis for this transaction indicates
that the maximum projected deterioration that it would expect at
each rating level over one and three-year periods, under moderate
stress conditions, is in line with S&P's credit stability

This transaction is a U.K. nonconforming RMBS transaction, which
Preferred Mortgage Ltd. originated.


Preferred Residential Securities 06-1 PLC
EUR107.6 mil, GBP288.432 mil, US$145 mil mortgage-backed
floating-rate notes
                                       Rating              Rating
Class            Identifier            To                  From
A2a              74038YAD8             A (sf)              A (sf)
A2b              74038YAE6             A (sf)              A (sf)
A2c              74038YAF3             A (sf)              A (sf)
B1a              74038YAG1             A (sf)              A (sf)
B1c              74038YAJ5             A (sf)              A (sf)
C1a              74038YAK2             A (sf)              A (sf)
C1c              74038YAM8             A (sf)              A (sf)
D1a              74038YAN6             BB (sf)             B (sf)
D1c              74038YAQ9             BB (sf)             B (sf)
E1c              74038YAS5             B- (sf)             B-(sf)
FTc              74038YAU0             CCC (sf)           CCC(sf)

RANGERS FOOTBALL CLUB: Ex-Owner Disqualified as Director
Mail Online report that Former Rangers Football Club PLC owner
Craig Whyte has been disqualified as a director for 15 years.

The Insolvency Service handed out the maximum ban available under
its powers "for failing to avoid conflict of interest in the
running of the club," according to Rangers Football Club PLC.

The report notes that Mr. Whyte took Rangers into administration
in February 2012 and they were consigned to liquidation in the
June of that year -- just 13 months after he took over the club.

As reported in the Troubled Company Reporter-Europe on May 16,
2014, The Scotsman said that former Rangers supremo Craig Whyte
is facing a legal move to disqualify him from being a company

The venture capitalist took over the Ibrox club in 2011 when he
bought the controlling interest in Rangers from majority
shareholder Sir David Murray for GBP1, The Scotsman related.

But the club was plunged into administration the following year
following moves at the Court of Session in Edinburgh and later
went into liquidation before a consortium led by Charles Green
was able to buy out the business, The Scotsman recounted.

Mr. Whyte, 43, is now facing an action at the same court by a
Government department over his fitness to be a company director,
The Scotsman disclosed.

The action has been brought by the Secretary of State for
Business Innovation and Skills, The Scotsman noted.

                       About Rangers Football Club

Rangers Football Club PLC --
-- is a United Kingdom-based company engaged in the operation of
a professional football club.  The Company has launched its own
Internet television station,  The station combines
the use of Internet television programming alongside traditional
Web-based services.  Services offered include the streaming of
home matches and on-demand streaming of domestic and European
games, which include dedicated pre-match, half-time and post-
match commentary.  The Company will produce dedicated news
magazine and feature programs, while the fans can also access a
library of classic European, Old Firm and Scottish Premier League
(SPL) action.  Its own dedicated television studio at Ibrox
provides onsite production, editing and encoding facilities to
produce content for distribution on all media platforms.

TRAVELPORT LIMITED: Moody's Raises CFR to 'B2'; Outlook Stable
Moody's Investors service has upgraded Travelport Limited's
(Travelport) corporate family rating (CFR) to B2 from B3.
Concurrently, Moody's has affirmed the B3-PD probability of
default rating (PDR) of Travelport Limited. Moody's has also
affirmed the B2 ratings of the USD2.4 billion first lien loan
facility and USD100 million revolving credit facility (RCF)
issued by Travelport Finance (Luxembourg) S.a.r.l. All ratings
have stable outlook.

The rating action follows the completion of Travelport's Initial
Public Offering (IPO) and concludes the review for upgrade which
was initiated on September 16, 2014.

Ratings Rationale

On September 24, Travelport Worldwide Limited -- the parent
company of Travelport Limited -- announced a public offering of
30 million common shares at a price of USD16 per share. Net
proceeds from the offering will be applied towards redemption of
debt and other liabilities.

Upon receipt of the proceeds received during the offering,
Moody's understands Travelport will immediately reimburse its
USD425 million unsecured bridge-facility and thereby decrease the
company's leverage to below 6x Moody's adjusted debt/ EBITDA. The
company's reduced debt-levels will further strengthen free cash
flow generation as interest costs diminish.

Travelport's B2 CFR continues to reflect (1) the company's high
leverage expected to be around 5.7x Moody's adjusted debt/ EBITDA
pro-forma for the IPO (2) an overall high degree of business risk
(3) some degree of customer concentration.

These factors are balanced to some extent by Travelport's (1)
leading position as a GDS provider (2) diversified customer base
and geographical footprint.

Affirmation of the B3-Pd PDR

The affirmation of the B3-PD reflects an all bank-debt capital
structure to which Moody's applies a 65% recovery-rate.

Affirmation of the B2-Rating Of Loan-Facility And RCF

Moody's has affirmed the B2-rating of the USD2.4 billion first-
lien loan and the USD100 million RCF. The ratings are aligned
with the CFR as the junior ranking USD425 million unsecured loan
facility will be reimbursed with proceeds raised during the IPO.

Liquidity Profile

Moody's expects that Travelport's liquidity profile will remain
good over the next 12-18 months. The completion of the company's
recent refinancing will contribute to a strengthening of free
cash flows and improved headroom to its financial maintenance
covenant. Furthermore, the reimbursement of the USD425 million
loan facility will further strengthen cash flows. A further
liquidity cushion is provided by access to an undrawn RCF of
USD100 million.

Rationale for the Stable Outlook

The stable outlook reflects Moody's expectations that Travelport
will be generating solid positive free cash flows allowing for
further reduction of net debt.

What Could Change the Rating Up/Down

Positive rating pressure could arise if Travelport succeeds in
bringing leverage down below 5.0x Moody's adjusted debt/EBITDA.

Conversely, negative pressure would likely be exerted on the
rating should Travelport's leverage move above 6x debt/EBITDA for
a prolonged period of time.

Principal Methodology

The principal methodology used in these ratings 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.

Registered in Bermuda and headquartered in Langley, United
Kingdom, Travelport Limited is a leading travel commerce platform
providing distribution, technology, payment and other solutions
for the global travel and tourism industry. During FY2013, the
group reported revenues and adjusted EBITDA of USD2.1 billion and
USD517 million, respectively.


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

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

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


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

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

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

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

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

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

                 * * * End of Transmission * * *