TCREUR_Public/141009.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 9, 2014, Vol. 15, No. 200

                            Headlines

B U L G A R I A

BULGARIA: Deficit Increase Weakens Rating Strength, Fitch Says
CORPORATE COMMERCIAL: Bankruptcy Likely to Happen, Economists Say


F R A N C E

TILLY-SABCO: Wins Two-Month Reprieve as Court Orders Liquidation


G E R M A N Y

HECKLER & KOCH: S&P Lowers CCR to 'CCC' on Weakened Liquidity
MS DEUTSCHLAND: First Meeting Fails to Constitute Quorum
STYROLUTION GROUP: S&P Retains 'B+' CCR on CreditWatch Negative


I R E L A N D

HARVEST CLO VIII: S&P Affirms 'B' Rating on Class F Notes


L U X E M B O U R G

ESPIRITO SANTO SAUDE: Fosun Group Only Candidate to Buy Firm


N E T H E R L A N D S

CID FINANCE: S&P Cuts Rating on EUR2.5MM Series 47 Notes to 'B+'
CONSTELLIUM NV: Moody's Puts 'Ba3' CFR Under Review for Downgrade
HALFORDS NETHERLANDS: Files for Bankruptcy
LEOPARD CLO III: Moody's Affirms 'Caa3' Ratings on 2 Note Classes
MERCATOR III: S&P Raises Rating on Class B-2 Def Notes to 'B+'


N O R W A Y

ALBAIN MIDCO: Moody's Lowers CFR to 'B3'; Outlook Stable


P O R T U G A L

ESPIRITO SANTO: DIFC Regulator Calls for Winding Up of ES Bankers


S L O V A K   R E P U B L I C

VAHOSTAV: Bratislava Court Approves Restructuring Process


S P A I N

AYT CGH CAJA I: Moody's Lowers Rating on EUR10.3MM Notes to Caa2
BBVA CONSUMO 6: S&P Assigns Prelim. 'B' Rating to Class B Notes
IM SABADELL 3: Moody's Raises Rating on EUR14.4MM C Notes to Ba1
TDA CAM 11: Moody's Raises Rating on EUR132MM Cl. C Notes to 'B3'


U K R A I N E

KYIV CITY: Fitch Lowers Long-Term IDRs to 'CC'; Outlook Negative


U N I T E D   K I N G D O M

3LEGS RESOURCES: To Go Into Liquidation, Return Cash
DUNCANNON CRE: Fitch Affirms 'Csf' Ratings on 7 Note Classes
EUROMASTR 2007-1V: Fitch Raises Rating on Class D Notes to 'BB-'
GLASTONBURY 2007-1: Fitch Raises Rating on Class C Notes to 'Bsf'
HALFWAY HOUSE: Former Director Faces Nine-Year Boardroom Ban

HEATHROW FINANCE: Fitch Assigns 'BB+' Rating to GBP250MM Bonds
PKS EVENTS: In Liquidation, Scraps Castle Hill Car Festival
PUNCH TAVERNS: Obtains Approval for Debt Restructuring Plan
REACT ENERGY: Kedco Subsidiary Enters Voluntary Liquidation
TODS MURRAY: Acquisition Leaves 50 Posts at Risk


                            *********

===============
B U L G A R I A
===============


BULGARIA: Deficit Increase Weakens Rating Strength, Fitch Says
--------------------------------------------------------------
Bulgaria's proposed budget revisions highlight how the summer's
bank runs, a slowing economy, and over-spending are weakening its
public finances, Fitch Ratings says.  Low debt and contained
deficits give the sovereign a significant fiscal buffer, and
public finances remain a rating strength, but they will have
diminished capacity to counterbalance the ratings weaknesses.

Bulgaria's interim cabinet approved revisions that forecast the
2014 fiscal deficit at 4% of GDP last week, ahead of the
country's parliamentary election on Sunday.  The new parliament
will vote on the revisions.  The revised 2014 deficit is more
than 2x the previous target of 1.8%.  Bulgaria may also sell an
additional BGN4.5 billion (USD2.9 billion) of debt to finance the
deficit, provide liquidity to banks, and lend money to the
Deposit Insurance Fund, possibly to give to depositors in
Corporate Commercial Bank (CorpBank), which was placed in
conservatorship in June.

The revisions demonstrate how slower growth (the finance ministry
has cut its 2014 growth forecast to 1.5% from 1.8% and predicts
deflation), over-spending in 9M14, and bank-related costs will
weigh on the public finances, which have been a key rating
strength.  The next government may have little option but to
adopt the revisions, given the weaker-than-expected fiscal
outturns so far this year and the need to approve a 2015 budget
relatively quickly.

The increased borrowing would take gross general government
debt/GDP to 28% -- still more than 10pp below the 'BBB' median,
but well above our existing baseline scenario of GGGD peaking at
around 23% of GDP in 2017-2018.  Fitch's ratings assessment
already anticipates some fiscal deterioration, with the deficit
rising to the 'BBB' median (2.9% of GDP) this year.  Under the
revisions, public finances would remain a rating strength, albeit
a diminished one.

The elections could result in further political uncertainty,
after Citizens for European Development of Bulgaria (GERB) won
around a third of the vote but did not achieve an outright
majority.  Fitch expected the elections to result in another
coalition government, but they have delivered a more fragmented
parliament that may make building and maintaining an effective
coalition difficult, even if GERB's showing arguably represents a
mandate for fiscal discipline and structural reform.

Strong public finances and diminishing external imbalances have
provided a counterweight to moderate growth and concerns about
governance standards, as we noted when we affirmed Bulgaria's
'BBB-'/Stable rating in July.  The runs on CorpBank and FIBank
earlier this year highlighted corporate governance problems at
domestically owned companies.  Recent announcements by the
European Banking Authority and European Commission that they will
investigate whether depositors were treated correctly and whether
Bulgaria's deposit guarantee scheme meets EU standards highlight
this issue again.

Fitch's next scheduled review of Bulgaria's rating is due on Dec.
19. It will take account of how the government that emerges will
address the deterioration in the public finances and the slowdown
in growth.


CORPORATE COMMERCIAL: Bankruptcy Likely to Happen, Economists Say
-----------------------------------------------------------------
FOCUS News Agency, citing Presa daily, reports that the case with
Corporate Commercial bank and the preparation of draft budget are
the problems in Bulgarian financial system that urgently need
solution.

According to FOCUS News, the new cabinet should tackle these two
problems immediately after it assumes office.

Economists told Presa that the bankruptcy of Corporate Commercial
Bank seems more and more likely to happen.

The bank was put under special supervision on June 20 but there
is still no decision taken on its future, FOCUS News notes.
There are no firm intentions for the recapitalization of the
bank, FOCUS News states.

According to FOCUS News, financial expert Lyubomir Datsov said
that there are two scenarios: to stabilize the bank or to pay off
guaranteed deposits.  Presa daily said that several political
parties will have to decide what to do with Corporate Commercial
Bank, FOCUS News relates.

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.



===========
F R A N C E
===========


TILLY-SABCO: Wins Two-Month Reprieve as Court Orders Liquidation
----------------------------------------------------------------
just-food.com reports that a French court on September 30 ordered
the liquidation of embattled French poultry exporter, Tilly-
Sabco, with the provision that it be allowed to continue trading
in the hope of finding a buyer.

The commercial court of Brest authorized Tilly-Sabco "to pursue
its activities for a period of two months until November 30,"
taking into account the provision made "to finance the business
and pay wages until October 30," according to just-food.com.

The report notes that Chief Executive Officer Daniel Sauvaget
informed the Tilly-Sabco's works council that the company was in
an insolvent position.

The Brittany-based firm's difficulties are largely down to the
withdrawal last year of EU subsidies for poultry exports, the
report relates.



=============
G E R M A N Y
=============


HECKLER & KOCH: S&P Lowers CCR to 'CCC' on Weakened Liquidity
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Heckler & Koch GmbH to 'CCC' from
'CCC+'.  The outlook is negative.  S&P also lowered its issue
rating on the company's senior secured notes to 'CCC' from
'CCC+'. The recovery rating on these notes remains unchanged at
'4'.

S&P's rating action reflects its opinion that Heckler & Koch
could face default within the next 12 months unless the company
is able to fulfill its existing orders, and successfully resume
business in markets that it has been restricted from operating in
since the change of government in Germany in 2013.  Although the
German government has recently indicated its willingness to
approve exports of certain armaments, the delays in resolving the
German export licensing policy to date have depressed Heckler &
Koch's earnings and caused its liquidity position to deteriorate
to "weak" from "less than adequate."  S&P believes that this
liquidity issue will persist over the short term until the
benefits of any approved licenses begin to feed through, boosting
cash flow.

The company has stated that it will be able to meet its next
EUR14 million interest payment, due in November.  However, S&P
believes that this is somewhat reliant on Heckler & Koch
receiving an anticipated EUR8.9 million payment from one of its
customers in the coming month, leaving little headroom for any
adverse developments.

Regardless of whether Heckler & Koch makes the EUR14 million
interest payment due in Nov., S&P considers that its ability to
meet future interest payments will depend heavily on favorable
developments relating to its export licenses.

Heckler & Koch provided revenue guidance for full year 2014 of
EUR145 million-EUR155 million (2013: EUR221 million) and EBITDA
guidance for the same period of EUR25 million-EUR30 million
(2013: EUR61.6 million).  Additionally, gross margins narrowed
based on changes in product and customer mixes, resulting in a
year-on-year drop in the margin to 34.6% from 44.9%.  These
numbers are significantly lower than our previous expectations of
revenues of about EUR180 million and EBITDA of about EUR40
million for full year 2014.

The negative outlook reflects S&P's view that Heckler & Koch's
liquidity difficulties could weaken further over the next year if
the company experiences order or cash receipt delays, making the
company more likely to default.

Coupled with high debt, any delay in cash receipts will impair
working capital and liquidity, which could lead S&P to consider a
downgrade.  Despite satisfactory profitability, Heckler & Koch's
cash generation is less than adequate, and, as a result, if S&P
sees results only slightly below those in its base-case
assumptions, the company could suffer significant liquidity
stress.

Downside scenario

S&P could lower the rating if the company does not formally
obtain key export licenses within a timeframe that will allow
delivery of existing orders before the May 2015 interest payment,
or if Heckler & Koch's liquidity position deteriorated even
further for other reasons.

Upside scenario

S&P could raise the rating if key export licenses are formally
approved and the company has the capacity to fulfill existing
orders in a timely manner.  S&P could also raise the rating if
Heckler & Koch's liquidity position benefits from equity capital
injections or credit facilities that S&P considers to be
supportive of a stronger liquidity assessment.


MS DEUTSCHLAND: First Meeting Fails to Constitute Quorum
--------------------------------------------------------
MS "DEUTSCHLAND" Beteiligungsgesellschaft mbH on Oct. 8 disclosed
that only 44.01% of the outstanding bonds were registered at the
first creditors' meeting of the MS Deutschland bond 2012/2017.

The meeting thus failed to meet the required quorum of 50%.
MS "Deutschland" Beteiligungsgesellschaft mbH would like to point
out that dialogue with the creditors regarding an improvement of
the company's financing structure is urgently required.  The
company will therefore convene a second creditors' meeting
shortly.  At this meeting, registration of more than 25% of the
outstanding bonds will constitute a quorum.

The purpose of the creditors' meeting was to appoint a joint
representative of the bond's creditors.


STYROLUTION GROUP: S&P Retains 'B+' CCR on CreditWatch Negative
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it has maintained on
CreditWatch with negative implications its ratings on Germany-
based chemical producer Styrolution Group GmbH, including its
'B+' long-term corporate credit rating and 'B+' issue rating on
its senior secured notes.

At the same time, S&P assigned a 'B' issue rating and '3'
recovery rating to the proposed EUR1.05 billion equivalent five-
year senior secured term loan.  Styrolution expects to use the
proceeds, which are to be put into an escrow account until the
regulatory approval is received, to fund the planned acquisition.

S&P expects to lower the corporate credit rating to 'B' once the
transaction receives regulatory approval, expected in fourth-
quarter 2014, and the company attracts the funding.  This is
because of substantially higher leverage post-transaction, with
4.5x adjusted debt to EBITDA at year-end 2014, up from S&P's
previous forecast of 2.0x.  Under the revised structure of the
transaction, Styrolution will raise a EUR1.05 billion equivalent
term loan and EUR400 million equivalent second-lien  notes to
settle the EUR1.1 billion purchase price INEOS agreed to pay to
acquire BASF's 50% stake in Styrolution, repay the outstanding
EUR480 million senior secured notes, and pay transaction fees.

The transaction will leave Styrolution with about EUR1.8 billion
gross adjusted debt compared with our EBITDA forecast of about
EUR400 million after special items for 2014.  S&P estimates that
higher interest expenses due to materially higher gross debt will
lower the ratio of adjusted funds from operations (FFO) to debt
to about 16% at year-end 2014, down from S&P's previous forecast
of over 30% and despite the company's substantially lowered
guidance for future capital expenditures and currently supportive
industry conditions.  S&P also take intos account anticipated
earnings volatility, which could push up leverage further in case
of a downturn.

S&P's assessment of Styrolution's business risk profile is
unchanged at "weak," reflecting the commodity nature of
Styrolution's products and the limited product diversification as
a pure play styrenics producer.  These characteristics can result
in high cyclicality of earnings and cash flows during periods of
lower demand in the company's more cyclical end markets.  Other
negative factors include raw material price volatility, below-
average profitability, and substitution risk (for example for
polystyrene).

Supportive business factors include, in S&P's view, Styrolution's
large scale, and integrated and cost-competitive asset base, with
75% of its production assets positioned in the first and second
quartile of the industry cost curve.  In addition, management's
track record of realizing more than EUR200 million of cost
savings since the initiation of its joint venture, the company's
good degree of geographic and end-market diversity in its sales,
and a global customer base support the ratings.  S&P also views
positively the company's strategic focus on higher margin
products and higher-growth regions and end markets.

S&P aims to resolve the CreditWatch upon the company's successful
placement of the EUR1.05 billion equivalent term loan and EUR400
million equivalent second-lien notes and regulatory approval of
the transaction, which is expected in the fourth quarter of 2014.
The company will put the proceeds of the term loan into escrow in
the meantime.

S&P expects to lower the rating on Styrolution to 'B' on
completion of the refinancing and regulatory approval to reflect
materially weaker post-transaction credit metrics, including FFO
to debt of about 16% and adjusted gross debt to EBITDA of about
4.5x.

Over the medium term, rating upside to 'B+' would depend on a
positive operating environment, deleveraging to about 3.5x
adjusted debt to EBITDA, and a supportive financial policy.



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


HARVEST CLO VIII: S&P Affirms 'B' Rating on Class F Notes
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on
Harvest CLO VIII Ltd.'s class A, B, C, D, E, and F notes
following the transaction's effective date as of June 20, 2014.

Most European cash flow collateralized loan obligations (CLOs)
close before purchasing the full amount of their targeted level
of portfolio collateral.  On the closing date, the collateral
manager typically covenants to purchase the remaining collateral
within the guidelines specified in the transaction documents to
reach the target level of portfolio collateral.  Typically, the
CLO transaction documents specify a date by which the targeted
level of portfolio collateral must be reached.  The "effective
date" for a CLO transaction is usually the earlier of the date on
which the transaction acquires the target level of portfolio
collateral, or the date defined in the transaction documents.
Most transaction documents contain provisions directing the
trustee to request the rating agencies that have issued ratings
upon closing to affirm the ratings issued on the closing date
after reviewing the effective date portfolio (typically referred
to as an "effective date rating affirmation").

"An effective date rating affirmation reflects our opinion that
the portfolio collateral purchased by the issuer, as reported to
us by the trustee and collateral manager, in combination with the
transaction's structure, provides sufficient credit support to
maintain the ratings that we assigned on the transaction's
closing date.  The effective date reports provide a summary of
certain information that we used in our analysis and the results
of our review based on the information presented to us," S&P
said.

"We believe the transaction may see some benefit from allowing a
window of time after the closing date for the collateral manager
to acquire the remaining assets for a CLO transaction.  This
window of time is typically referred to as a "ramp-up period."
Because some CLO transactions may acquire most of their assets
from the new issue leveraged loan market, the ramp-up period may
give collateral managers the flexibility to acquire a more
diverse portfolio of assets," S&P added.

For a CLO that has not purchased its full target level of
portfolio collateral by the closing date, S&P's ratings on the
closing date and prior to its effective date review are generally
based on the application of S&P's criteria to a combination of
purchased collateral, collateral committed to be purchased, and
the indicative portfolio of assets provided to S&P by the
collateral manager, and may also reflect its assumptions about
the transaction's investment guidelines.  This is because not all
assets in the portfolio have been purchased.

"When we receive a request to issue an effective date rating
affirmation, we perform quantitative and qualitative analysis of
the transaction in accordance with our criteria to assess whether
the initial ratings remain consistent with the credit enhancement
based on the effective date collateral portfolio.  Our analysis
relies on the use of CDO Evaluator to estimate a scenario default
rate at each rating level based on the effective date portfolio,
full cash flow modeling to determine the appropriate percentile
break-even default rate at each rating level, the application of
our supplemental tests, and the analytical judgment of a rating
committee," S&P said.

"In our published effective date report, we discuss our analysis
of the information provided by the transaction's trustee and
collateral manager in support of their request for effective date
rating affirmation.  In most instances, we intend to publish an
effective date report each time we issue an effective date rating
affirmation on a publicly rated European cash flow CLO," S&P
added.

"On an ongoing basis after we issue an effective date rating
affirmation, we will periodically review whether, in our view,
the current ratings on the notes remain consistent with the
credit quality of the assets, the credit enhancement available to
support the notes, and other factors, and take rating actions as
we deem necessary," S&P noted.

RATINGS LIST

Harvest CLO VIII Ltd.
EUR425 Million Senior Secured Floating-Rate and
Subordinated Notes

Ratings Affirmed

Class            Rating

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



===================
L U X E M B O U R G
===================


ESPIRITO SANTO SAUDE: Fosun Group Only Candidate to Buy Firm
------------------------------------------------------------
Macauhub, citing the Portuguese press, reports that the
Luxembourg Commercial Court is due to announce on Oct. 17 if
China's Fosun International will be allowed to buy Portuguese
healthcare company Espirito Santo Saude through a tender offer.

Rioforte is the majority shareholder of Espirito Santo Healthcare
Investments, which owns 51 percent of Espirito Santo Saude but,
as the Luxembourg-based company has gone into administration to
prevent immediate insolvency, the legal authorities will have to
decide whether or not the company can be sold, according to
Macauhub.

However, weekly newspaper Expresso reported that the decision on
the tender offer may be made sooner, as happened with the sale of
travel company Espirito Santo Viagens, for which the Luxembourg
court granted approval, the report notes.

Portuguese groups Mello Saude, Espirito Santo Saude, Lusiadas and
Trofa Saude control almost 80 percent of the private hospital
business in Portugal, and ES Saude said in May that profit in the
first quarter had doubled year on year to EUR4.6 million.

ES Health owns Hospital da Luz in Lisbon, Hospital Beatriz Angelo
in Loures and Hopital da Arrabida in the northern city of Porto,
amongst others, the report notes.

The company has a network of 18 units, including eight private
hospitals, a hospital run on behalf of the National Health
Service in a public-private partnership arrangement, seven
private clinics to operate on an outpatient basis and two senior
residences, the report relates.



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


CID FINANCE: S&P Cuts Rating on EUR2.5MM Series 47 Notes to 'B+'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
nine tranches issued by European collateralized debt obligation
(CDO) and repackaging transactions.

The rating actions on these nine tranches follow S&P's recent
rating actions on the underlying collateral and reference
obligation.  Under S&P's criteria applicable to transactions such
as these, it would generally reflect changes to the rating on the
collateral in S&P's rating on the tranche.

Ratings List

                                                 Rating   Rating
   Issuer              Issue description         To       From
  CID Finance B.V.     EUR2.5 mil
                       credit-linked secured
                       limited recourse
                       notes Series 47
                                                 B+       BB-
  CID Finance B.V.     EUR2.5 mil credit-linked
                       secured limited
                       recourse notes Series 46
                                                 B-       B
  CID Finance B.V.     EUR10 mil credit-linked
                       secured limited recourse
                       notes series
                                                 B+       BB-
  Willow No.2
  (Ireland) PLC        EUR85 mil secured
                       limited-recourse
                       fixed-rate notes series
                                                 BBB      BBB+
  Willow No.2
  (Ireland) PLC        EUR17.666 mil secured
                       limited-recourse floating-rate
                       notes series
                                                 BB+      BBB-
  Willow No.2
  (Ireland) PLC        EUR30 mil secured
                       limited-recourse fixed-rate
                       notes series 8
                                                 BB+      BBB-
  Willow No.2
  (Ireland) PLC        EUR16.238 mil secured
                       limited-recourse
                       floating-rate notes
                       series 12
                                                 BB+      BBB-
  Willow No.2
  (Ireland) PLC        EUR7 mil secured
                       limited-recourse
                       variable-rate index-linked
                       notes series 14
                                                 BB+p     BBB-p
  Willow No.2
  (Ireland) PLC        EUR44.5 mil secured
                       limited-recourse
                       variable rate notes
                       series
                                                 BB+      BBB-


CONSTELLIUM NV: Moody's Puts 'Ba3' CFR Under Review for Downgrade
-----------------------------------------------------------------
Moody's Investors Service, Inc. placed Constellium NV's Ba3
corporate family rating (CFR) and probability of default (PDR) of
Ba3-PD under review for downgrade following the company's
announcement of its planned acquisition of US-based Wise Metals
Intermediate Holdings LLC (Wise). The Ba3 senior unsecured
ratings of Constellium's debt instruments have also been put
under review for downgrade.

Ratings Rationale

The ratings review reflects Moody's view that Constellium's
planned acquisition of Wise Metals (B3 CFR under review for
upgrade) could result in a material increase of the company's
indebtedness on a pro forma basis, with a significant increase in
capex for the consolidated entity in the next few years.
Constellium has indicated that the acquisition will be financed
through the issuance of a mix of equity and debt to pay for the
USD1.4 billion acquisition consisting of USD455 million in cash
and approximately USD945 million of assumed Wise debt, but
provided no breakdown details of the debt-equity mix. In
addition, the strategy pursued by Constellium to increase Wise's
rolling capacity to serve the North American auto market (Body in
White) will lead to substantial capex to be spent over the next
seven years of approximately USD750 million. Combined with the
existing Constellium's capex program, it will likely result in a
material negative free cash flow for the group, in particular
between 2015-17 where the highest share is concentrated.

Moody's also recognises that the acquisition of Wise has a solid
strategic rationale, albeit with execution risks. Post
acquisition, the enlarged Constellium group will hold a global
leading position in the aluminium can sheet business (activity
core to the two companies) and will increase the market presence
of the company in the fast growing aluminium Body in White
automotive market. As a result of the acquisition Constellium
will consolidate its global market share in the can sheet
business while significantly increasing its market penetration in
the North American market for aluminium Body in White for the
auto industry.

Post acquisition, Constellium will become a global leader in the
aluminium can body stock and will present a more balanced
geographic portfolio. Management estimates that pro forma of the
acquisition, Constellium revenues would have been EUR4.4 billion
in 2013 (versus reported of EUR3.5 billion). Constellium expects
that the acquisition will be EBITDA accretive from the first
year, with an expected EBITDA contribution from Wise of USD140
million in 2015 (EUR110.2 million).

Moody's review will focus primarily on 1) a detailed review of
the business and operating strategies of the group post Wise
acquisition, including pacing of synergies and upfront costs to
achieve such benefits, as well as capex and growth expectations;
2) the financing mix of the transaction (including debt
structure), which has not yet been detailed publically and the
resulting post acquisition capital structure, as well as the
financing policy of the combined entity; and 3) the liquidity
profile. Constellium's ratings could remain under review until
the acquisition has substantially been completed, depending to
the US anti-trust authorities pending review, although Moody's
will endeavour to outline the potential outcome of the review
beforehand.

Rating actions: Constellium NV

Corporate Family Rating (CFR) -- Ba3 Under Review for Downgrade

PDR - Ba3-PD Under Review for Downgrade

Senior Unsecured Rating -- Ba3 Under Review for Downgrade

Outlook -- Under Review

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

Constellium produces approximately 1 million tonnes per year of
fabricated aluminium products and has operations in Europe, North
America and Asia. It mainly sells to the packaging, automotive,
transportation and aerospace industries. Following last year's
IPO the company is based in The Netherlands and the shareholding
is devised between Fonds Strategique d'Investissement
(approximately 12%), the management (approximately 3%) and free
float (approximately 85%). For the full year 2013 the company
reported shipments of 1,025 ktons, which translated into sales of
EUR3.5 billion.

Headquartered in Muscle Shoals, Alabama, Wise Metals Intermediate
Holdings LLC is a holding company that owns a 100% stake in Wise
Metals Group LLC (Wise Metals), which, in turn, owns 100% of Wise
Alloys LLC (Wise Alloys), a producer of rolled aluminum products
supplying primarily the North American can sheet market. Wise
Alloys contributes the majority of the company's consolidated
revenues. Consolidated revenues for the fiscal year ending 31
December 2013 were approximately USD1.3 billion.


HALFORDS NETHERLANDS: Files for Bankruptcy
------------------------------------------
Macintosh Retail Group NV on Oct. 7 disclosed that it has been
notified that an application for bankruptcy has been filed by the
management of Halfords Netherlands, and that this application has
been accepted.  Macintosh sold Halfords to the chain's Managing
Director on June 30, 2013.

Following the buy-out, Macintosh continued to provide Halfords
with funding in the form of a EUR9.5 million credit facility,
which created a healthy financial position for Halfords at the
time of the buy-out. To protect its interests, Macintosh has
security rights to the assets of Halfords.  In Macintosh's
financial statements, the value of its receivables from Halfords
are valued on EUR6.4 million.

The court-appointed trustees in bankruptcy will take steps to
realise the value of Halfords's assets, also with a view to
repaying Halfords's debt to Macintosh.  All options are open in
principle, including a relaunch of Halfords.

Halfords Netherlands is a bicycle and automotive chain.


LEOPARD CLO III: Moody's Affirms 'Caa3' Ratings on 2 Note Classes
-----------------------------------------------------------------
Moody's Investors Service announced that it has taken rating
actions on the following classes of notes issued by Leopard CLO
III B.V.:

  EUR235M (current balance EUR 18.5M) A1 Notes, Affirmed Aaa
  (sf); previously on Feb 7, 2014 Affirmed Aaa (sf)

  EUR14.5M B Notes, Affirmed Aaa (sf); previously on Feb 7, 2014
  Affirmed Aaa (sf)

  EUR18M C1 Notes, Upgraded to Aa3 (sf); previously on Feb 7,
  2014 Upgraded to A3 (sf)

  EUR11M C2 Notes, Upgraded to Aa3 (sf); previously on Feb 7,
  2014 Upgraded to A3 (sf)

  EUR16.25M D Notes, Affirmed B2 (sf); previously on Feb 7, 2014
  Affirmed B2 (sf)

  EUR6.25M (current balance EUR4.7M) E1 Notes, Affirmed Caa3
  (sf); previously on Feb 7, 2014 Affirmed Caa3 (sf)

  EUR4M (current balance EUR3.1M) E2 Notes, Affirmed Caa3 (sf);
  previously on Feb 7, 2014 Affirmed Caa3 (sf)

  EUR10M (current balance EUR5.4M) Combo W Notes, Upgraded to Aa3
  (sf); previously on Feb 7, 2014 Upgraded to A3 (sf)

  EUR4M (current balance EUR2.5M) Combo Z Notes, Upgraded to Aa3
  (sf); previously on Feb 7, 2014 Upgraded to A2 (sf)

Leopard CLO III B.V., issued in April 2005, is a single currency
Collateralised Loan Obligation ("CLO") backed by a portfolio of
mostly high yield senior secured European loans managed by M&G
Investment Management Limited. This transaction passed its
reinvestment period in October 2010.

Ratings Rationale

According to Moody's, the upgrade of Classes C1 and C2 notes is
primarily a result of the continued amortization of the portfolio
and subsequent increase in the collateralization ratios since the
last rating action in February 2014 which was based on
December 2013 data. Moody's notes that as of August 2014, the
reported performing pool and principal proceeds have reduced by
EUR29.1 million (27.2%) since December 2013, leading to an
increase in the overcollateralization ratios (or "OC ratios") of
the senior notes. As per the trustee report dated August 2014,the
Class A/B and Class C OC ratios are reported at 245.84% and
130.83%, compared to December 2013 levels of 181.88% and 121.39%
respectively. Reported WARF has worsened marginally from 2963 to
3031 between December 2013 and August 2014; the diversity score
has reduced from 17 to 12, and exposure to Caa assets has reduced
from 16.6% of performing par to 5.2% during the same period. The
OC ratios for Classes E1 and E2 continue to remain below 100%.

The ratings of the two Combination Notes address the repayment of
the Rated Balance on or before the legal final maturity. For
Class W Combination Notes, the 'Rated Balance' is equal at any
time to the principal amount of the Combination Note on the Issue
Date times a rated coupon of 1.50% per annum accrued on the rated
balance on the preceding payment date, minus the aggregate of all
payments made from the Issue Date to such date, either through
interest or principal payments. For Class Z Combination Notes,
the 'Rated Balance' is equal at any time 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 aggregate of all payments made from the
Issue Date to such date, either through interest or principal
payments. The current Rated Balances of Class W and Class Z are
approximately EUR5.4 million and EUR2.5 million respectively. The
Rated Balances may not necessarily correspond to the outstanding
notional amounts reported by the trustee.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base
case, Moody's analyzed the underlying collateral pool as having a
EUR pool with performing par and principal proceeds balance of
EUR76.14 million, and defaulted par of EUR13.06 million, a
weighted average default probability of 19.8% (consistent with a
WARF of 3188 over a weighted average life of 3.3 years), a
weighted average recovery rate upon default of 47.23% for a Aaa
liability target rating, a diversity score of 11 and a weighted
average spread of 3.89%.

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 92.1% 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.

Moody's notes that the portfolio includes a small number of
investments in securities that mature after the maturity date of
the notes. Based on the August 2014 trustee report, such
securities currently total EUR2.2 million (4.5%) of reported
performing par.

Moody's notes the September trustee report has recently been
issued. Key portfolio metrics such as OC ratios, WARF, diversity
score, defaults, and weighted average spread are materially
unchanged from August 2014 data. Based on the current available
principal proceeds, Moody's expects Classes A1 and B to be fully
redeemed on the October 2014 payment date.

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 spread in the
portfolio. Moody's ran a model in which it reduced the weighted
average spread by 30 bp; the model generated outputs that were
within one notch of the base-case results.

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

Additional uncertainty about performance is due to the following:

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

2) Around 27.0% of the collateral pool consists of debt
obligations whose credit quality Moody's has assessed by using
credit estimates.

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

4) Long-dated assets: The presence of assets that mature beyond
the CLO's legal maturity date exposes the deal to liquidation
risk on those assets. Moody's assumes that at transaction
maturity such an asset has a liquidation value dependent on the
nature of the asset as well as the extent to which the asset's
maturity lags that of the liabilities. Realisation of higher than
expected liquidation values would positively impact the ratings
of the notes.

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.


MERCATOR III: S&P Raises Rating on Class B-2 Def Notes to 'B+'
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Mercator CLO III Ltd.'s class A-1, A-2, A-3 def, and B-2 def
notes.  At the same time, S&P has affirmed its 'BB+ (sf)' rating
on the class B-1 def notes.

The rating actions follow S&P's analysis of the transaction using
data from the trustee report dated July 31, 2014, and the
application of S&P's relevant criteria.

                                            Credit
           Current    Amount as  Current    enhancement
           amount     of July    credit     as of
           (EUR       2012 (EUR  enhancement July 2012
Class      mil.)      mil.)      (%)        (%)        Interest
                                                       Three-Mo.
                                                       EURIBOR
                                                       plus
A-1        85.58      177.38     52         36         0.225%
                                                       Three-Mo.
                                                       EURIBOR
                                                       plus
A-2        31.50      31.50      35         24         0.520%
                                                       Three-Mo.
                                                       EURIBOR
                                                       plus
A-3 def    18.00      18.00      25         18         0.850%
                                                       Three-Mo.
                                                       EURIBOR
                                                       plus
B-1 def    18.00      18.00      15         11         2.100%
                                                       plus
B-2 def    10.44      10.90      9          7          4.200%
Sub        29.80      29.80      0          0          N/A

N/A--Not applicable.

Since S&P's previous review in July 2012, the class A-1 notes
have amortized by a further EUR91.81 million.  As a result, the
available credit enhancement has increased for all of the rated
classes of notes.

The portfolio's weighted-average spread has increased to 3.49%
from 4.11% since S&P's previous review.

Over the same period, the portfolio's weighted-average life has
increased to 5.08 years from 3.97 years, which has somewhat
mitigated the abovementioned positive developments.
Consequently, the scenario default rates (SDR) increased for all
rating levels. The SDR is S&P's expectation of the rate of
defaults the portfolio will experience in a specific rating
environment using Standard & Poor's CDO evaluator.

As a result of these developments, and following the application
of S&P's criteria, it considers the available credit enhancement
for the class A-1, A-2,A-3 def, and B-2 def notes to be
commensurate with higher ratings than those previously assigned.
S&P has therefore raised its ratings on these classes of notes.

S&P's credit and cash flow analysis indicates that the available
credit enhancement for the class B-1 def notes is commensurate
with their current rating.  S&P has therefore affirmed its 'BB+
(sf)' rating on the class B-2 def notes.

Barclays Bank PLC (A/Negative/A-1) acts as currency hedge
counterparty.  S&P has reviewed its downgrade provisions and they
do not comply with its current counterparty criteria.  Therefore,
in scenarios above 'A+', S&P did not give credit to the
counterparty.

The application of S&P's supplemental tests did not constrain its
ratings on the notes.

Mercator CLO III is a cash flow collateralized loan obligation
(CLO) transaction that securitizes loans to speculative-grade
corporate firms.  The transaction closed in August 2007 and
entered its amortization period in Oct. 2013.  The portfolio is
managed by NAC Management (Cayman) Ltd.

RATINGS LIST

Mercator CLO III Ltd.
EUR307.7 mil floating-rate notes
                         Rating
Class     Identifier     To         From
A-1       XS0314315226   AAA (sf)   AA (sf)
A-2       XS0314315812   AA (sf)    AA- (sf)
A-3 def   XS0314316463   A (sf)     BBB+ (sf)
B-1 def   XS0314317271   BB+ (sf)   BB+ (sf)
B-2 def   XS0314317941   B+ (sf)    CCC+ (sf)



===========
N O R W A Y
===========


ALBAIN MIDCO: Moody's Lowers CFR to 'B3'; Outlook Stable
--------------------------------------------------------
Moody's Investors Service has downgraded to B3 from B2 the
corporate family rating (CFR) and to B3-PD from B2-PD the
probability of default rating (PDR) of Albain Midco Norway AS,
which is a holding company of the EWOS group (EWOS), a leading
Norwegian-based salmon feed producer. At the same time, Moody's
has downgraded to B3 from B2 the ratings of the EUR225 million
senior secured notes due 2020 and the NOK1,810 million senior
secured floating-rate notes due 2020 issued by Albain Bidco
Norway AS, and to Caa2 from Caa1 the rating of the NOK1,040
million senior subordinated notes issued by Albain Midco Norway
AS. The outlook of all ratings is stable.

Ratings Rationale

The rating action largely reflects Moody's expectations that
EWOS's full-year 2014 earnings and profitability margins will
fall significantly short of what the rating agency anticipated to
stabilize the outlook and will not able to regain ground in the
near term. Moody's expects that, at year end, EWOS's free cash
flow will be negative and its Moody's adjusted leverage will be
substantially above 6x as a result of a number of issues
including higher than expected raw material costs in Norway,
worsening biological conditions during the third quarter of 2014
in the Northern hemisphere and intensified competition in the
Norwegian salmonid feed market, EWOS's main market. Moody's is
also concerned with the uncertainty related to the potential
medium-term impact on the ban imposed by Russia on salmon and to
the situation with two of its largest Chilean customers.

Whilst EWOS delivered growth across all markets in the first six
months of 2014, with volumes up by approximately 11% and reported
EBITDA up by 20% compared with the previous year, this uptick was
mainly driven by favorable biological conditions and not by new
customer acquisitions to compensate for the loss of sales volumes
due to a reduction in share-of-wallet from a customer in Norway
incurred in the third quarter of 2013. In spite of the solid
first half performance, Moody's expects a weak third quarter
driven by increased sea water temperatures to a suboptimal level
and by the fact that part of the Norwegian waters became infested
with sea lice, forcing some salmon farmers to harvest earlier
than anticipated. Both events will have a negative effect on
EWOS's sales volumes. Moody's is also concerned that the new feed
facility built by Marine Harvest, which began operations in June
2014, will further pressure prices. In addition, as stated by
EWOS in their Q2 report, raw material costs have been higher than
anticipated in Norway due to challenges related to variability
and quality in raw material supplies. Such increase may affect
the results for the second half of 2014.

Moody's also notes that there is a degree of uncertainty around
the potential medium-term impact on EWOS's sales volumes of the
Russian ban imposed on seafood imported by Western countries in
August 2014 for one year. As Norwegian salmon farmers are
significantly exposed to Russia, overall salmon production could
be affected if they fail to shift their produce to new and
existing markets. The Norwegian government has recently increased
by 6% the salmon biomass till March 2015 to mitigate price
volatility following the ban announcement. This could potentially
delay salmon production to a point in time where demand is more
favorable lowering the risk for salmonid feed suppliers. Whilst
it is uncertain the impact on the Norwegian market, Moody's
positively notes that the ban is likely to boost the Chilean
salmon industry.

EWOS has US$73 million of receivable exposure as of June 2014
with two of its largest Chilean customers, Nova Austral and
Acuinova, in distress. EWOS continues to extend feed on credit to
Nova Austral, thereby building up its exposure. However, EWOS
expects that it will fully recover the overdue receivables over
time following its planned acquisition of Nova Austral. While
Nova Austral will remain outside the restricted group, Moody's
expects some cash leakage from the restricted group to Nova
Austral as permitted under the bond indenture. Furthermore,
Moody's is concerned with the execution risk associated with the
turnaround of the non-core salmon farming company Nova Austral.

Conversely, there is a higher degree of uncertainty regarding the
recovery of receivables related to Acuinova, which will be
acquired by Marine Harvest in order to boost its Chilean
operations. Marine Harvest is likely to launch a global tender
for the feed supply contract of Acuinova in 2015 with EWOS
incurring the risk of either losing the contract or having it
renewed at less favorable terms.

Despite Moody's expectations of increased working capital and
cash leakage, the rating agency views EWOS's liquidity as being
adequate with NOK580 million cash on balance sheet as of June
2014; a NOK600 million revolving credit facility, currently
undrawn; modest capex requirements; and a lack of debt
amortization.

Rationale for Stable Outlook

The stable rating outlook reflects Moody's expectation that,
during 2015, the competitive environment in Norway will
stabilize, EWOS will generate modest revenue growth with improved
profitability and its free cash flow will turn positive while it
maintains an adequate liquidity profile. Quantitatively, Moody's
expects that the debt to EBITDA ratio as adjusted by Moody's will
be below 6.5x on a sustainable basis over the next 12-18 months.

What Could Change the Rating Up/Down

In light of the action, upward pressure on the rating is unlikely
in the medium term, but could be considered if the company's
volumes and profitability improve, resulting in the adjusted
leverage metric trending towards 5.5x whilst maintaining adequate
liquidity.

Downward rating pressure could occur if EWOS is unable to reduce
and maintain adjusted debt/EBITDA below 7.0x as a result of a
decline in sales volumes and profitability from client losses,
intensified competition and operational issues. EWOS's ratings
could also be downgraded if free cash flow remains negative on a
sustainable basis and liquidity deteriorates.

Principal Methodology

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

Headquartered in Norway, EWOS is a leading salmon feed producer,
with operations in the principal salmon farming markets of
Norway, Chile, Canada and Scotland. EWOS produces extruded
pellets for salmon (Atlantic salmon, coho salmon, rainbow trout
and Chinook) from marine raw materials (fish oil and fishmeal)
and vegetable protein products. The company posted total revenues
of NOK10.84 billion (approximately EUR1.3 billion) for the fiscal
year ended December 31, 2013.



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


ESPIRITO SANTO: DIFC Regulator Calls for Winding Up of ES Bankers
-----------------------------------------------------------------
John Everington at The National reports that the Dubai financial
regulator has called for the winding-up of the local unit of
troubled Portuguese bank Espirito Santo after its manager
attested that it was unable to continue as a going concern.

The DIFC Courts have appointed administration specialists Philip
Bowers and Neville Kahn of Deloitte as joint provisional
liquidators of ES Bankers (Dubai) Ltd (ESBD), following a
petition made on September 24 by the freezone's regulator the
Dubai Financial Services Authority (DFSA), according to The
National.

"The primary function of the joint provisional liquidators is to
protect ESBD's assets and those of its clients in the period
until a formal winding-up hearing," said the regulator in a
statement obtained by The National.

A hearing of the DFSA's petition will be heard in the DIFC Courts
on October 19, at which point it will be decided whether to place
the bank into full liquidation, and to formalize the liquidators'
appointments, the report notes.

The report discloses that Mr. Bowers said in a statement that
ESBD's financial position was currently being reviewed, and that
he and Mr. Kahn could not currently comment "on the potential
quantum of return to depositors".

"A liquidator (if appointed) will write to clients with Customer
Deposits separately in due course to agree claims and to advise
on the likely timing and quantum of payments," the report quoted
Mr. Bowers as saying.

In April, the report relates that Mr. Bowers and Mr. Kahn were
appointed as joint receivers of London's iconic Gherkin tower,
after a series of loan defaults on the building.

The petition follows a restriction placed by the regulator on
ESBD on September 18 from taking or paying deposits and to
require the firm to maintain and preserve its assets, the report
says.

The restriction was put in place after Banque Privee Espirito
Santo (BPES), a Swiss-domiciled entity in the same group as ESBD,
to honor contractual commitments to the Dubai-based entity and to
repay deposits owed to it, the report notes.

The report discloses that BPES is currently subject to
liquidation proceedings in Switzerland, with several other
members of the Espirito Santo Group also in some form of external
administration.

Portuguese regulators bailed out the financial group -- splitting
the bank in two -- in August after Banco Espirito Santo's owners
were unable to meet commitments on billions of euros of debt, the
report relays.

                    About Espirito Santo

Espirito Santo Financial Group SA is the owner of about 20% of
Banco Espirito Santo SA.

Banco Espirito Santo is a private Portuguese bank based in
Lisbon, Portugal.

In August 2014, Banco Espirito Santo was split into "good"
and "bad" banks as part of a EUR4.9 billion rescue of the
distressed Portuguese lender that protects taxpayers and senior
creditors but leaves shareholders and junior bondholders holding
only toxic assets.  A total of EUR4.9 billion in fresh capital is
being injected into this "good bank", which will subsequently be
offered for sale.  It has been renamed "Novo Banco", meaning new
bank, and will include all BES's branches, workers, deposits and
healthy credit portfolios.

Also in August 2014, Espirito Santo Financial Portugal, a unit
fully owned by Espirito Santo Financial Group, filed under
Portuguese corporate insolvency and recovery code.

In August 2014, Espirito Santo Financiere SA, another entity of
troubled Portuguese conglomerate Espirito Santo International SA,
filed for creditor protection in Luxembourg.

In July 2014, Portuguese conglomerate Espirito Santo
International SA filed for creditor protection in a Luxembourg
court, saying it is unable to meet its debt obligations.



=============================
S L O V A K   R E P U B L I C
=============================


VAHOSTAV: Bratislava Court Approves Restructuring Process
---------------------------------------------------------
The Slovak Spectator, citing the SITA newswire, reports that the
Bratislava I District Court accepted the request to start the
restructuring process in Vahostav.

According to The Slovak Spectator, the SITA newswire reported on
Oct. 8 that the decision has already been published in the
Business Bulletin and it is not possible to appeal against it.

Vahostav asked the court for protection from creditors and to
launch the restructuring process on Sept. 26, The Slovak
Spectator relates.  This will allow the firm to deduct part of
its debt, thanks to which it hopes to avoid bankruptcy, and to
succeed in its attempts to get the bankruptcy proceeding against
it launched on Sept. 16 halted, The Slovak Spectator discloses.
The company claims the restructuring process is the only way for
its rescue, The Slovak Spectator notes.

Based on the court decision from Sept. 29, which was published on
Oct. 6, Vahostav proved its solvency, The Slovak Spectator
relays.

According to The Slovak Spectator, Miroslav Moravcik, head of the
company and chair of the board of directors, as quoted by SITA,
said "Vahostav was under the pressure of creditors for the past
few months, while several motions to start bankruptcy proceeding
against the firm have been submitted [to court]".

Mr. Moravcik added that it will be important to improve the
condition of the firm, not only towards the creditors, but also
towards itself, The Slovak Spectator notes.  During the
restructuring process the company will have to be under the
supervision of the court and the creditors, The Slovak Spectator
discloses.  It will have to pay its commitments towards suppliers
and employees on time, The Slovak Spectator states.

Vahostav is a construction company based in the Slovak Republic.



=========
S P A I N
=========


AYT CGH CAJA I: Moody's Lowers Rating on EUR10.3MM Notes to Caa2
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of ten notes,
downgraded the rating of one note and affirmed the ratings of two
notes in four Spanish residential mortgage-backed securities
(RMBS) transactions: VAL BANCAJA 1, FTA; AyT ICO-FTVPO Caja Vital
Kutxa; AyT ICO-FTVPO I, FTA; AyT Colaterales Global Hipotecario
Caja Cantabria I.

The rating action concludes the review of ten notes placed on
review on March 17, 2014, following the upgrade of the Spanish
sovereign rating to Baa2 from Baa3 and the resulting increase of
the local-currency country ceiling to A1 from A3. The sovereign
rating upgrade reflected improvements in institutional strength
and reduced susceptibility to event risk associated with lower
government liquidity and banking sector risks.

Ratings Rationale

The rating action reflects (1) the increase in the Spanish local-
currency country ceiling to A1 and (2) sufficiency of credit
enhancement in the affected transactions.

The downgrade of the C notes in the AyT Colaterales Global
Hipotecario Caja Cantabria I transaction reflects the
insufficient credit enhancement caused by the reduction in the
size of the reserve fund as recent defaults came through in the
transaction, as well as linkage to counterparty risk.

-- Reduced Sovereign Risk

The Spanish sovereign rating was upgraded to Baa2 in February
2014, which resulted in an increase in the local-currency country
ceiling to A1. The Spanish country ceiling, and therefore the
maximum rating that Moody's will assign to a domestic Spanish
issuer including structured finance transactions backed by
Spanish receivables, is A1 (sf).

-- Key collateral assumptions

The key collateral assumptions for AyT ICO-FTVPO Caja Vital
Kutxa; AyT ICO-FTVPO I, FTA; AyT Colaterales Global Hipotecario
Caja Cantabria I have not been updated as part of this review.
The performance of the underlying asset portfolios remain in line
with Moody's assumptions. Moody's also has a stable outlook for
Spanish ABS and RMBS transactions.

Moody's has reassessed its lifetime loss expectation taking into
account the collateral performance of the VAL BANCAJA 1, FTA
transaction to date. The portfolio shows deteriorating growth
rate in defaults. The cumulative defaults as a percentage of the
original pool balance in VAL BANCAJA 1, FTA reached 3.66% versus
2.21% in August 2013. As a result, Moody's increased its key
expected assumption to 4.60% up from 4.42% of the original pool
balance respectively.

The MILAN CE assumption for VAL BANCAJA 1, FTA remains in line
with Moody's assumptions and therefore has not been increased.

-- Exposure to Counterparties

Moody's rating analysis also took into consideration the exposure
to key transaction counterparties. Including the roles of
servicer, account bank, and swap provider.

The rating action takes into account issuer account bank exposure
to Banco Santander S.A. (Spain) acting as issuer account bank in
AyT Colaterales Global Hipotecario Caja Cantabria I and VAL
BANCAJA 1, FTA as well as commingling exposure to Liberbank;
Kutxabank, S.A.; Bankia, S.A.; Caixabank; Banco Mare Nostrum; NCG
Banco S.A. and Caja de Ahorros y Monte de Piedad Ontinyent acting
as servicers in the transactions.

Moody's also assessed the exposure to CECABANK S.A. and
Kutxabank, S.A., acting as swap counterparties in the AyT ICO-
FTVPO Caja Vital Kutxa, AyT ICO-FTVPO I, FTA and AyT Colaterales
Global Hipotecario Caja Cantabria I transactions when revising
ratings. This exposure has not negatively affected the ratings.

Principal Methodology

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

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

Factors or circumstances that could lead to an upgrade of the
ratings include (1) further reduction in sovereign risk, (2)
performance of the underlying collateral that is better than
Moody's expected, (3) deleveraging of the capital structure and
(4) improvements in the credit quality of the transaction
counterparties.

Factors or circumstances that could lead to a downgrade of the
ratings include (1) an increase in sovereign risk, (2)
performance of the underlying collateral that is worse than
Moody's expects, (3) deterioration in the notes' available credit
enhancement and (4) deterioration in the credit quality of the
transaction counterparties.

List of Affected Ratings:

Issuer: VAL BANCAJA 1, FTA

EUR88.3M Class A1 Notes, Affirmed A1 (sf); previously on Mar 17,
2014 Upgraded to A1 (sf)

EUR170M Class A2 Notes, Affirmed A1 (sf); previously on Mar 17,
2014 Upgraded to A1 (sf)

EUR26.7M Class B Notes, Upgraded to A2 (sf); previously on
Mar 17, 2014 Baa2 (sf) Placed Under Review for Possible Upgrade

EUR15M Class C Notes, Upgraded to Baa2 (sf); previously on
Mar 17, 2014 Ba2 (sf) Placed Under Review for Possible Upgrade

Issuer: AyT ICO-FTVPO Caja Vital Kutxa

EUR140.4M Class A Notes, Upgraded to A1 (sf); previously on
Mar 17, 2014 A3 (sf) Placed Under Review for Possible Upgrade

EUR7.7M Class B Notes, Upgraded to A2 (sf); previously on
Mar 17, 2014 Baa1 (sf) Placed Under Review for Possible Upgrade

EUR6.9M Class C Notes, Upgraded to Baa3 (sf); previously on
Mar 17, 2014 Ba1 (sf) Placed Under Review for Possible Upgrade

Issuer: AyT ICO-FTVPO I, FTA

EUR303M Class A (G) Notes, Upgraded to A1 (sf); previously on
Mar 17, 2014 A3 (sf) Placed Under Review for Possible Upgrade

EUR11.45M Class B Notes, Upgraded to Baa2 (sf); previously on
Mar 17, 2014 Ba1 (sf) Placed Under Review for Possible Upgrade

EUR12.45M Class C Notes, Upgraded to B1 (sf); previously on
Mar 17, 2014 B2 (sf) Placed Under Review for Possible Upgrade

Issuer: AYT C.G.H. CAJA CANTABRIA I, FTA.

EUR203.5M Class A Notes, Upgraded to A1 (sf); previously on
Mar 17, 2014 A3 (sf) Placed Under Review for Possible Upgrade

EUR12.7M Class B Notes, Upgraded to Ba1 (sf); previously on
Mar 17, 2014 B2 (sf) Placed Under Review for Possible Upgrade

EUR10.3M Class C Notes, Downgraded to Caa2 (sf); previously on
May 9, 2013 Confirmed at Caa1 (sf)


BBVA CONSUMO 6: S&P Assigns Prelim. 'B' Rating to Class B Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services has assigned preliminary
credit ratings to BBVA Consumo 6, Fondo de Titulizacion de
Activos' class A and B notes.  At closing, BBVA Consumo 6 will
issue an unrated subordinated loan.

The transaction will securitize a portfolio of Spanish consumer
loans that Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)
originated.  The issuer will use the notes issuance proceeds to
purchase the loans, and the subordinated loan proceeds to fund
the reserve fund required amount.  Under the transaction
documents, the issuer can purchase further eligible receivables
during the first 18 months of the revolving period, as long as no
early amortization events occur.

S&P's analysis indicates that the available credit enhancement
for the class A and B notes is sufficient to withstand the credit
and cash flow stresses that S&P applies at the assigned
preliminary rating levels.

RATING RATIONALE

Sector Outlook

S&P's base-case scenario for Spain indicates that GDP will grow
to 1.3% by year-end 2014, and 1.8% in 2015.  S&P expects
unemployment to decrease to 24.2% by year-end 2014, and 23% in
2015.  S&P considers these metrics to be key determinants of
portfolio performance.  S&P sets its credit assumptions to
reflect its economic outlook.  Although GDP prospects are
positive, unemployment remains high, so S&P's view on the
consumer loan sector's fundamentals remains negative.

Operational Risk

BBVA is a leading Spanish bank.  It is a well-established
originator with a good track record in the Spanish securitization
market.  In addition to originating the loans, BBVA will be
servicing the loans.  Also, BBVA will be the paying agent and
treasury and principal account provider.

S&P's preliminary ratings on the class A and B notes reflect its
assessment of the bank's origination policies, as well as S&P's
evaluation of its ability to fulfill its role as servicer under
the transaction documents.

Credit Risk

S&P has used performance data from BBVA's loan portfolio and from
previous transactions to analyze credit risk.  S&P expects to see
about 12% of defaults in the securitized pool.  Compared with its
rated predecessor, BBVA Consumo 5, Fondo de Titulizacion de
Activos, we have increased our baseline default expectations by
1% due to a weakening in the portfolio's composition.  A larger
portion of BBVA Consumo 6's loans were granted for unspecified
general consumption, rather than for vehicle acquisition.  In
addition, a smaller portion of the borrowers are permanently
employed.  S&P has analyzed credit risk by applying its European
consumer finance criteria.

Counterparty Risk

S&P considers that the transaction's documented replacement
mechanisms adequately mitigate its counterparty risk exposure to
BBVA as bank account provider up to a 'A' rating level under
S&P's current counterparty criteria.  The transaction will be
exposed to the risk of cash collections becoming commingled in
BBVA's account.  Under the documentation, BBVA will transfer the
collected funds in two business days to the treasury account,
which is held with BBVA in the issuer's name.  According to S&P's
current counterparty criteria, the two-day time limit fully
mitigates commingling risk.

Legal Risk

S&P considers the issuer to be bankruptcy-remote, in line with
its European legal criteria and Spanish law.  S&P has received
legal confirmation that the sale of the assets would survive if
the seller were to become insolvent.

Cash Flow Analysis

S&P has assessed the transaction's documented payment structure.
S&P derived its credit and cash flow assumptions by applying its
European consumer finance criteria.  Credit enhancement for the
rated tranches arises from a combination of subordination, a
reserve fund, and potential excess spread.  The class A notes
will also benefit from a trigger based on the amount of doubtful
loans (defined under the documentation as loans in arrears over
18 months) to defer the class B notes' interest in order to speed
up the payment of the class A notes' principal.

S&P's analysis indicates that the class A and B notes' available
credit enhancement is sufficient to withstand the credit and cash
flow stresses that S&P applies at the assigned preliminary rating
levels.

Sovereign Risk

To determine the preliminary rating for the transaction, S&P
applied a hypothetical sovereign default stress test to determine
whether the class A notes have sufficient credit and structural
support to withstand a sovereign default and so repay timely
interest and principal by legal final maturity.

S&P's rating single-jurisdiction securitizations above the
sovereign foreign currency rating criteria (RAS criteria)
designate the country risk sensitivity for asset-backed
securities (ABS) as 'moderate'.  Under S&P's RAS criteria, this
transaction's notes can therefore be rated four notches above the
sovereign rating, as they have sufficient credit enhancement to
pass a minimum of a "severe" stress.  However, S&P's 'A (sf)'
rating on the class A notes is constrained by the rating derived
by applying its European consumer finance criteria, and is only
three notches above our long-term rating on the Kingdom of Spain.

Ratings Stability

In S&P's review, it has analyzed the effect of a moderate stress
on the credit variables and their ultimate effect on the ratings
on the notes.  S&P has run two scenarios and the results are in
line with its credit stability criteria.

RATINGS LIST

Preliminary Ratings Assigned

BBVA Consumo 6, Fondo de Titulizacion de Activos
EUR336 Million Asset-Backed Fixed-Rate Notes
Including A Subordinated Loan

Class           Prelim.        Prelim.
                rating          amount
                              (mil. EUR)

A               A (sf)             255
B               B (sf)              45
Sub loan (RF)   NR                  36

NR--Not rated.


IM SABADELL 3: Moody's Raises Rating on EUR14.4MM C Notes to Ba1
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of 5 notes and
confirmed the ratings of 4 notes in 3 Spanish residential
mortgage-backed securities (RMBS) transactions: IM Sabadell RMBS
3, FTA, Rural Hipotecario VI, FTA and Rural Hipotecario XII, FTA.

The rating action concludes the review of 9 notes placed on
review on March 17, 2014, following the upgrade of the Spanish
sovereign rating to Baa2 from Baa3 and the resulting increase of
the local-currency country ceiling to A1 from A3. The sovereign
rating upgrade reflected improvements in institutional strength
and reduced susceptibility to event risk associated with lower
government liquidity and banking sector risks.

Ratings Rationale

The rating upgrades reflect (1) the increase in the Spanish
local-currency country ceiling to A1 and (2) sufficiency of
credit enhancement in the affected transactions.

For Rural Hipotecario VI, FTA the rating action also reflects the
correction of a model input error. In prior rating actions, the
recovery rate input in the model was inconsistent with the MILAN
input, therefore the tail of the asset loss distribution was
generated incorrectly. The model has now been adjusted, and the
rating action reflects this change.

-- Reduced Sovereign Risk

The Spanish sovereign rating was upgraded to Baa2 in February
2014, which resulted in an increase in the local-currency country
ceiling to A1. The Spanish country ceiling, and therefore the
maximum rating that Moody's will assign to a domestic Spanish
issuer including structured finance transactions backed by
Spanish receivables, is A1 (sf).

The sufficiency of credit enhancement combined with stable
performance and the reduction in sovereign risk has prompted the
upgrade of the notes.

-- Key collateral assumptions

The key collateral assumptions have not been updated as part of
this review. The performance of the underlying asset portfolios
remain in line with Moody's assumptions. Moody's also has a
stable outlook for Spanish ABS and RMBS transactions.

-- Exposure to Counterparties

Moody's rating analysis also took into consideration the exposure
to key transaction counterparties including the roles of
servicer, account bank and swap provider.

The rating action takes into account commingling exposure to
Banco Sabadell, S.A. (Ba2/NP) for IM Sabadell RMBS 3, FTA and to
multiple Cajas Rurales for Rural Hipotecario VI, FTA and Rural
Hipotecario XII, FTA. In the case of IM Sabadell RMBS 3, FTA
there is also strong linkage to Banco Santander S.A. (Spain)
(Baa1/P-2) holding the reserve fund which represents 8% of the
current balance of the rated notes.

Moody's also assessed the exposure to Banco Sabadell, S.A.
(Ba2/NP) acting as swap counterparty for IM Sabadell RMBS 3, FTA
and Banco Cooperativo Espanol, S.A. (Ba2/NP) as swap counterparty
for Rural Hipotecario VI, FTA and Rural Hipotecario XII, FTA.

Principal Methodology

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

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

Factors or circumstances that could lead to an upgrade of the
ratings include (1) further reduction in sovereign risk, (2)
performance of the underlying collateral that is better than
Moody's expected, (3) deleveraging of the capital structure and
(4) improvements in the credit quality of the transaction
counterparties.

Factors or circumstances that could lead to a downgrade of the
ratings include (1) an increase in sovereign risk, (2)
performance of the underlying collateral that is worse than
Moody's expects, (3) deterioration in the notes' available credit
enhancement and (4) deterioration in the credit quality of the
transaction counterparties.

List of Affected Ratings

Issuer: IM SABADELL RMBS 3, FTA

EUR1411.2M A Notes, Upgraded to A1 (sf); previously on Mar 17,
2014 A3 (sf) Placed Under Review for Possible Upgrade

EUR14.4M B Notes, Upgraded to Baa2 (sf); previously on Mar 17,
2014 Ba1 (sf) Placed Under Review for Possible Upgrade

EUR14.4M C Notes, Upgraded to Ba1 (sf); previously on Mar 17,
2014 Ba3 (sf) Placed Under Review for Possible Upgrade

Issuer: RURAL HIPOTECARIO VI, FTA

EUR909.1M A Notes, Upgraded to A2 (sf); previously on Mar 17,
2014 Baa1 (sf) Placed Under Review for Possible Upgrade

EUR28.5M B Notes, Confirmed at Ba2 (sf); previously on Mar 17,
2014 Ba2 (sf) Placed Under Review for Possible Upgrade

EUR12.4M C Notes, Confirmed at B2 (sf); previously on Mar 17,
2014 B2 (sf) Placed Under Review for Possible Upgrade

Issuer: RURAL HIPOTECARIO XII, FTA

EUR862.2M A Notes, Upgraded to A3 (sf); previously on Mar 17,
2014 Baa2 (sf) Placed Under Review for Possible Upgrade

EUR20.5M B Notes, Confirmed at Ba2 (sf); previously on Mar 17,
2014 Ba2 (sf) Placed Under Review for Possible Upgrade

EUR27.3M C Notes, Confirmed at B2 (sf); previously on Mar 17,
2014 B2 (sf) Placed Under Review for Possible Upgrade


TDA CAM 11: Moody's Raises Rating on EUR132MM Cl. C Notes to 'B3'
-----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of nine notes,
confirmed the ratings of three notes and affirmed the rating of
one note in four Spanish residential mortgage-backed securities
(RMBS) transactions actions: TDA CAM 7, FTA; TDA CAM 11, FTA; TDA
29, FTA; TDA 31, FTA.

The rating action concludes the review of ten notes placed on
review on March 17, 2014, following the upgrade of the Spanish
sovereign rating to Baa2 from Baa3 and the resulting increase of
the local-currency country ceiling to A1 from A3. The sovereign
rating upgrade reflected improvements in institutional strength
and reduced susceptibility to event risk associated with lower
government liquidity and banking sector risks.

Ratings Rationale

The rating action reflects (1) the increase in the Spanish
local-currency country ceiling to A1 and (2) sufficiency of
credit enhancement in the affected transactions.

-- Reduced Sovereign Risk

The Spanish sovereign rating was upgraded to Baa2 in February
2014, which resulted in an increase in the local-currency country
ceiling to A1. The Spanish country ceiling, and therefore the
maximum rating that Moody's will assign to a domestic Spanish
issuer including structured finance transactions backed by
Spanish receivables, is A1 (sf).

The sufficiency of credit enhancement combined with the reduction
in sovereign risk has prompted the action of the notes.

-- Key collateral assumptions

The key collateral assumptions have not been updated as part of
this review. The performance of the underlying asset portfolios
remain in line with Moody's assumptions. Moody's also has a
stable outlook for Spanish ABS and RMBS transactions.

-- Exposure to Counterparties

Moody's rating analysis also took into consideration the exposure
to key transaction counterparties. Including the roles of
servicer, account bank, and swap provider.

The rating action takes into account commingling exposure to
Banco Sabadell, S.A. (Ba2/NP), Banca March S.A. (Baa3/P-3), Banco
Santander S.A. (Spain) (Baa1/P-2) and Banco de Espa¤a (NR).

Moody's also assessed the exposure to J.P. Morgan Securities plc
((P)Aa3/P-1) in TDA CAM 7, FTA and HSBC Bank plc (Aa3/P-1) in TDA
29, FTA and TDA 31, FTA acting as swap counterparty when revising
ratings.

Principal Methodology

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

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

Factors or circumstances that could lead to an upgrade of the
ratings include (1) further reduction in sovereign risk, (2)
performance of the underlying collateral that is better than
Moody's expected, (3) deleveraging of the capital structure and
(4) improvements in the credit quality of the transaction
counterparties.

Factors or circumstances that could lead to a downgrade of the
ratings include (1) an increase in sovereign risk, (2)
performance of the underlying collateral that is worse than
Moody's expects, (3) deterioration in the notes' available credit
enhancement and (4) deterioration in the credit quality of the
transaction counterparties.

List of Affected Ratings:

Issuer: TDA CAM 7 FONDO DE TITULIZACION DE ACTIVOS

EUR1207.3M Class A2 Notes, Confirmed at Baa3 (sf); previously on
Mar 17, 2014 Baa3 (sf) Placed Under Review for Possible Upgrade

EUR200M Class A3 Notes, Confirmed at Baa3 (sf); previously on
Mar 17, 2014 Baa3 (sf) Placed Under Review for Possible Upgrade

Issuer: TDA CAM 11 FONDO DE TITULIZACION DE ACTIVOS

EUR517.9M Class A2 Notes, Upgraded to A1 (sf); previously on
Mar 17, 2014 Baa2 (sf) Placed Under Review for Possible Upgrade

EUR403.2M Class A3 Notes, Upgraded to A1 (sf); previously on
Mar 17, 2014 Baa2 (sf) Placed Under Review for Possible Upgrade

EUR229.1M Class A4 Notes, Upgraded to A1 (sf); previously on
Mar 17, 2014 Baa2 (sf) Placed Under Review for Possible Upgrade

EUR33M Class B Notes, Confirmed at Ba2 (sf); previously on
Mar 17, 2014 Ba2 (sf) Placed Under Review for Possible Upgrade

EUR132M Class C Notes, Upgraded to B3 (sf); previously on
Jul 5, 2013 Affirmed Caa1 (sf)

Issuer: TDA 29 FONDO DE TITULIZACION DE ACTIVOS

EUR435M Class A2 Notes, Upgraded to Baa1 (sf); previously on
Mar 17, 2014 Baa2 (sf) Placed Under Review for Possible Upgrade

EUR17.4M Class B Notes, Upgraded to B1 (sf); previously on
Mar 17, 2014 B2 (sf) Placed Under Review for Possible Upgrade

EUR9.3M Class C Notes, Affirmed Caa3 (sf); previously on
Apr 29, 2013 Downgraded to Caa3 (sf)

Issuer: TDA 31, FONDO DE TITULIZACION DE ACTIVOS

EUR280.5M Class A Notes, Upgraded to A1 (sf); previously on
Mar 17, 2014 Baa1 (sf) Placed Under Review for Possible Upgrade

EUR6M Class B Notes, Upgraded to Baa3 (sf); previously on
Mar 17, 2014 Ba2 (sf) Placed Under Review for Possible Upgrade

EUR13.5M Class C Notes, Upgraded to B3 (sf); previously on
Apr 29, 2013 Downgraded to Caa3 (sf)



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


KYIV CITY: Fitch Lowers Long-Term IDRs to 'CC'; Outlook Negative
----------------------------------------------------------------
Fitch Ratings has downgraded the City of Kyiv's Long-term foreign
and local currency Issuer Default Ratings (IDRs) to 'CC' from
'CCC' and its National Long-term rating to 'BB(ukr)' from
'BBB(ukr)'.  The agency has affirmed the city's Short-term
foreign currency IDR at 'C'.  The Outlook on the National Long-
term rating is Negative.  The ratings on Kyiv's outstanding
senior unsecured USD550m eurobonds and UAH5.4bn domestic bonds
have been downgraded to 'CC' from 'CCC' and to 'BB(ukr)' from
'BBB(ukr)'.

Under EU credit rating agency (CRA) regulation, the publication
of International Public Finance reviews is subject to
restrictions and must take place according to a published
schedule, except where it is necessary for CRAs to deviate from
this in order to comply with their legal obligations.  Fitch
interprets this provision as allowing us to publish a rating
review in situations where there is a material change in the
creditworthiness of the issuer that we believe makes it
inappropriate for us to wait until the next scheduled review date
to update the rating or Outlook/Watch status.  The next scheduled
review date for Fitch's ratings on the City of Kyiv was Oct. 10,
2014.  However, following the city's announcement to restructure
domestic bonds and actual non-repayment of the scheduled tranche
on 6 October 2014 we have downgraded the city to reflect adverse
deterioration in its credit profile.

KEY RATING DRIVERS

The downgrade reflects the following rating drivers and their
relative weights:

High

The downgrade follows the city's missed payment on 6 October 2014
of a scheduled repayment of UAH1.125bn (UA4000142707).  The city
council has announced the restructuring of domestic bonds and
actual non-repayment of the scheduled tranche.  Therefore Fitch
views these bonds as distressed debt, demonstrating a very high
level of credit risk with increased probability of default
according to Fitch's criteria.

In its decision dated Sept. 18, 2014, Kyiv's city council voted
to postpone repayment of UAH2.625 billion (about USD200 million)
senior unsecured domestic bonds by 360 days.

Fitch considers Kyiv's recent inability to honor immediate
refinancing needs as materialization of significantly increased
refinancing risk.  The weakness of the domestic capital market
puts additional pressure on the city's already distressed ability
to service its debt.  The city will also be refinancing its two
outstanding USD250 million eurobonds and UAH1.9bn domestic bonds
coming due in 2H15.

The city's unhedged forex risk is exacerbated as Ukranian hryvnia
has depreciated 39% against the dollar since end-2013.

The city's liquidity position is weak despite increased cash
holdings up UAH570 million at end-August 2014 (2013: UAH333
million).

Medium:

The city's economy is likely to be negatively affected, as Fitch
expects Ukraine's real GDP to shrink by at least 6.5% in 2014,
and assumes zero growth in 2015 and 2016 given political
uncertainty. The negative recession impact will be partially
mitigated by the city's well-diversified economy, while
historically Kyiv contributed about 18% to Ukraine's GDP in 2009-
2013.

The city's ratings also reflect the following rating drivers:

Fitch expects volatility in Kyiv's budgetary performance due to
the lower predictability of potential fiscal changes as national
parliamentary elections are scheduled on Oct. 26, 2014.

Ukraine's ability to support Kyiv is going to be tested as the
national government's financial flexibility has significantly
reduced in 2013-2014.  Fitch used to view Kyiv's status as
Ukraine's capital and the administration's integration with the
central government as a supporting factor for the city's ratings.
However Ukraine's weakened institutional framework, despite the
city's political and economic importance to the state might
obstruct timely support to the city and further exacerbate
downside risks by end-2014 and in 2015.

RATING SENSITIVITIES

If Kyiv does not cure the overdue payment at the end of the grace
period on 9 October 2014 Fitch will consider the extension of the
bond repayment as a distressed debt exchange (DDE).  A DDE will
be viewed a 'Restricted Default' as outlined in Fitch's global
criteria report 'Distressed Debt Exchange' and the agency will
downgrade Kyiv's National Long-term rating and local currency
Long-term IDR to 'RD' (Restricted Default) and the bond ratings
of the affected security (UA4000142707) to 'D' (Default).



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


3LEGS RESOURCES: To Go Into Liquidation, Return Cash
----------------------------------------------------
Hana Stewart-Smith at Alliance News reports that 3Legs Resources
PLC said it has concluded that a return of its remaining cash
resources to shareholders, followed by an orderly liquidation of
its business would be in the "best interests" of its shareholders
after pulling out of its three Baltic Basin concessions earlier
this month.

3Legs has given a notice of termination to all of its officers,
employees and consultants, according to Alliance News.  It
expects to approve the return of not less than GBP15.5 million to
shareholders at an extraordinary general meeting in November,
equivalent to 18 pence per share, the report notes.

The report discloses that it will hold a second extraordinary
meeting in the first quarter of 2015 to place the company into
voluntary liquidation, a final distribution will be made
following the conclusion of this liquidation.

On September 17, the company exercised its option to withdraw
from the concessions after testing at the Lublewo LEP-1ST1H
horizontal well, the report relays.  The company concluded that
it could no longer justify further investments in the concessions
as the well flowed at rates it did not consider commercially
viable, Alliance News says.

The company is continuing to investigate options for its three
eastern Baltic Basin concessions, and is in discussions with
potential partners over the funding of a program of further
activity on the concessions; if these discussions are not
concluded in its available time frame it will surrender the
concessions, the report notes.

In the half-year to the end of June the company posted a pretax
loss of GBP1.5 million, swung from a loss of GBP27,000, hampered
by a foreign exchange loss of GBP200,000 in the period compared
to a foreign exchange gain of GBP1.5 million in the previous
year, the report adds.


DUNCANNON CRE: Fitch Affirms 'Csf' Ratings on 7 Note Classes
------------------------------------------------------------
Fitch Ratings has revised the Outlook on Duncannon CRE CDO I
p.l.c.'s class A notes, and affirmed all these ratings:

Class A (XS0311199524): affirmed at 'Bsf', Outlook revised to
Negative from Stable
Class B (XS0311200710): affirmed at 'CCsf'
Class C-1 (XS0311202500): affirmed at 'Csf'
Class C-2 (XS0311203813): affirmed at 'Csf'
Class D-1 (XS0311204464): affirmed at 'Csf'
Class D-2 (XS0311204621): affirmed at 'Csf'
Class D-3 (XS0311204977): affirmed at 'Csf'
Class E-1 (XS0311206329): affirmed at 'Csf'
Class E-2 (XS0311206592): affirmed at 'Csf'

Duncannon CRE CDO I is a managed cash securitization of
commercial real estate assets, consisting primarily of CMBS,
commercial mortgage B notes and mezzanine mortgage loans.

KEY RATING DRIVERS

The revision of the Outlook to Negative on the senior note
reflects the risk of an event of default caused by a non-payment
of interest on the class A or class B notes.  All the interest
coverage tests are failing and principal proceeds are being used
to pay interest due on the senior A and B notes.  Timely interest
payments on the senior notes depend on regular interest and
principal payments from assets in the portfolio or, if need be,
asset sales.

The senior interest coverage test decreased to 70.9% currently
from 184.8% in September 2013.  This is mainly due to the
amortization of the portfolio and the cost of the hedging
facility.  At closing, the issuer entered into a perfect asset
swap facility for a notional amount of EUR360 million.  This
agreement allows the issuer, for a running fixed fee, the option
to enter into individual asset swap agreements with a maximum
notional of GBP240 million and CHF150 million.  The amortization
schedule of the perfect asset swap facility was fixed at closing
and is not linked to the performing portfolio.  While the
aggregate principal balance decreases to EUR170 million, the
notional amount of the hedging facility remains at EUR360
million.

The rating affirmation reflects the improved portfolio
performance over the last 12 months but also the increasing event
of default risk.  The average rating of the performing portfolio
has migrated to 'BB+'/'BB' from 'B+'/'B' during this period.
However, defaulted assets have increased to EUR264.4 million from
EUR255.8 million and now represent approximately 65% of the
portfolio.  The portfolio continues to be concentrated in CMBS
assets.

The class A notes principal balance have decreased to EUR53.5
million from EUR146.9 million, due to the amortization of the
underlying portfolio.  As a consequence, based on the principal
balances of the non-defaulted obligations in the portfolio,
credit enhancement has increased to 57.9% for the class A notes
and to 26.4% for the class B notes.  The remaining classes are
undercollateralized.  All the coverage tests except the senior
par value test are currently failing leading to a deferral of
interests and decrease in credit enhancement for the class C, D
and E notes.

RATING SENSITIVITIES

Fitch has tested the impact on the ratings of bringing forward
the expected maturity of the assets in the portfolio to their
legal maturity, and found no impact the rated notes.


EUROMASTR 2007-1V: Fitch Raises Rating on Class D Notes to 'BB-'
----------------------------------------------------------------
Fitch Ratings has upgraded four tranches and affirmed one tranche
of EuroMASTR Series 2007-1V plc, as:

Class A2 (ISIN XS0305763061): upgraded to 'AAAsf' from 'AAsf';
Outlook Stable
Class B (ISIN XS0305764036): upgraded to 'A+sf' from 'Asf';
Outlook Stable
Class C (ISIN XS0305766080): upgraded to 'A-sf' from 'BBBsf';
Outlook Stable
Class D (ISIN XS0305766320): upgraded to 'BB-sf' from 'Bsf';
Outlook Stable
Class E (ISIN XS0305766676): affirmed at 'CCCsf'; Recovery
Estimate 95%

This transaction is collateralized by a pool of UK non-conforming
residential mortgages originated by Victoria Mortgage Funding.

KEY RATING DRIVERS

Improved Asset Performance

The transaction has reported improved asset performance, with
loans in arrears by more than three months having decreased to
10.8% in September 2014 from 14.4% in September 2013. These
levels are now comparable with peers, as indicated by Fitch's UK
Non-conforming Index of 10.6%.  The downward trend in arrears is
mainly driven by the current low interest rate environment and
the well-seasoned loans (weighted average seasoning of 94
months).

Over the last 12 months, possession activities have remained
fairly subdued, resulting in low numbers of unsold properties.
As of end-Sept. 2014, no properties were reported as being held
in possession.  Despite the portfolio's high cumulative weighted
average loss severity of 31%, Fitch expects near-term losses to
be sufficiently covered by excess spread generated within the
structure, which averages 2% annually.

Sufficient Credit Enhancement (CE)

The high seasoning of the transaction has led to the deleveraging
of the notes and thus a robust build-up in CE across the
structure.  Sufficient CE levels, combined with the healthy asset
performance, have driven the upgrades across the structure.

Pro-rata Amortization

The notes are currently amortizing on a pro-rata basis, due to
loans in arrears by more than three months falling below the
transaction's trigger of 20% since December 2013.  Given the
current level of arrears, Fitch expects the notes to continue
paying down pro-rata in the near future, which will benefit the
mezzanine and junior notes.  The structure includes a trigger
that will restrict pro-rata amortization when the outstanding
note balance reaches 10% of the original note balance.

Rating Sensitivities

As 100% of the underlying mortgages are linked to Libor, Fitch
believes that an expected increase in interest rates before end-
2015 will put a strain on borrower affordability, particularly
given the weaker profile of non-conforming borrowers in the
portfolio.  If defaults and associated losses increase beyond the
agency's stresses, the junior tranches may be downgraded.

Further deleveraging of the portfolio and build-up in CE,
supported by a continued decline in arrears and limited losses,
could lead to a further upgrade of certain mezzanine and junior
tranches.


GLASTONBURY 2007-1: Fitch Raises Rating on Class C Notes to 'Bsf'
-----------------------------------------------------------------
Fitch Ratings has upgraded Glastonbury 2007-1 P.L.C.'s class A1
EUR, A2, B and C notes, and affirmed the others:

GBP0.375 million class X (XS0292542734): affirmed at 'AAAsf',
Outlook Stable

EUR43.6 million class A1 EUR (no ISIN): upgraded to 'A+sf' from
'BBBsf', Outlook Negative

GBP33.0 million class A2 (XS0292543039): upgraded to 'A+sf' from
'Bsf', Outlook Negative

GBP32.0 million class B (XS0292543112): upgraded to 'BBsf' from
'CCCsf', Outlook Stable

GBP33.0 million class C (XS0292543468): upgraded to 'Bsf' from
'CCsf', Outlook Stable

GBP17.7 million class D (XS0292543542): affirmed at 'Csf'

GBP12.0 million class E (XS0292543898): affirmed at 'Csf'

GBP5.1 million class F (XS0292543971): affirmed at 'Csf'

Glastonbury Finance 2007-1 P.L.C. is a managed cash arbitrage
securitization of predominantly CMBS assets.  The issuer has been
incorporated as a special-purpose vehicle to issue approximately
GBP354 million of floating-rate and subordinated notes.  The
collateral is actively managed by Palatium Investment Management.
Since the end of the reinvestment period, any amortization and
sales proceeds are used to sequentially repay the outstanding
notes.

KEY RATING DRIVERS

The upgrades reflect the significant sequential paydown to the
structure since Fitch's last rating action in Oct. 2013. GBP92.9
million of debt has been repaid over this period, leading to full
repayment of the class A-1 GBP notes (GBP14.3 million at last
review) and a significant reduction in size of the class A-1
EUR notes, to EUR43.6 million from EUR123.0 million.  In addition
to this paydown, the issuer has confirmed that a further EUR85.0
million of euro-denominated performing assets (the last remaining
euro-denominated assets in the portfolio) have repaid in full
since the most recent August 2014 interest payment date (IPD),
and will be applied sequentially to the notes on the November
IPD.

Over the past year, a previously defaulted asset (the CMBS asset
Opera CMH C) has been resolved, alongside the full repayment of
three investment grade assets. Of the EUR85 million of assets
that have repaid since the August 2014 IPD, two were rated 'CCC',
providing significantly higher recoveries that anticipated.
These repayments are the principal drivers for the upgrades of
the class B and C notes.

Fitch expects the EUR85 million of asset proceeds to be paid down
to the notes in November to lead to the full repayment of the
class A1 EUR notes.  This will reduce the transaction's euro-
denominated liabilities to zero.  There is a euro-denominated
defaulted asset in the portfolio but Fitch has attributed no
recovery value to this asset.  The residual funds after the
repayment of the class A-1 EUR notes are expected to repay the
vast majority (if not all) of the class A2 GBP notes.  The two
notes' ratings and Outlooks have therefore been credit linked to
the rating of Deutsche Bank (A+/Negative/F1+), where the majority
of the proceeds from these asset repayments will be held until
that time.

As of the August IPD, credit enhancement for the class A1 EUR
note has increased to 75.4%, the A2 tranche to 52.0%, the class B
to 29.2% from 48.1%, 34.0% and 20%, respectively, since the last
rating action.  Credit enhancement for all other tranches has
fallen as a result of interest capitalization and as defaults
remain at approximately EUR35m, making up a larger proportion of
the transaction's outstanding balance.

While there is some concentration risk remaining in the pool,
significant credit enhancement at the top of the capital
structure, combined with the good credit quality of the remaining
assets provide some protection.  Of the GBP73.2m five performing
assets that will remain in the portfolio at the November IPD (64%
of which are commercial ABS assets), the largest asset accounts
for 45% of the outstanding notional balance and is rated 'BBB-'.
All other performing assets are rated 'BBB'.

There are no longer any 'CCC' assets in the portfolio, compared
with 20% last year.  This reflects the repayment of two 'CCC'
assets on the November IPD, in addition to the transition to
default of another asset.

The class A and B principal coverage tests are currently passing,
while the class C test is expected to pass following the November
IPD paydown.  The class A and B interest coverage (IC) test are
comfortably passing their minimum thresholds and have improved
markedly over the past 12 months.  There are no IC tests below
the Class B.

The class X notes rank senior to the class A1 notes and pay a
fixed installment of GBP125,000 every quarter.  Their balance
currently stands at GBP0.375 million and as such the notes are
expected to be fully redeemed on the May 2015 note payment date.

RATING SENSITIVITIES

Following the repayment of EUR85 million of performing assets, a
25% increase in the default probability of the portfolio would
lead to a one-notch downgrade of the class C notes.  A 25%
reduction in recovery amounts would not lead to any change in the
class B or C notes' ratings.


HALFWAY HOUSE: Former Director Faces Nine-Year Boardroom Ban
------------------------------------------------------------
Lesley Houston at Belfast Telegraph reports that Julianne Ferris,
a former director of Halfway House Ltd., has been handed a
nine-year boardroom ban after her firm went bust owing just under
GBP1 million.

Mrs. Ferris, from Demesne Valley, Dromore, was banned from being
a director on Sept. 11 at Belfast's High Court, Belfast Telegraph
relates.

Mrs. Ferris ran the company together with her husband Richard
Ferris before it went into administration in 2010, Belfast
Telegraph relays.  A similar nine-year ban was also imposed
against Mr. Ferris, Belfast Telegraph notes.

Administrators FSG McClure Watters took control over the running
of the popular venue in March 2010, Belfast Telegraph recounts.

It was then bought in 2013 by Brian Scullion, previous owner of
the Coach Inn in Banbridge and owner of the Seagoe Hotel in
Portadown, and Jonto Walker, a Banbridge businessman, Belfast
Telegraph discloses.

The company owed GBP792,793 when it collapsed, and the DETI
alleged unfit conduct against Mrs Ferris, including holding back
nearly GBP411,000 in taxes between 2007 and 2010, and using the
money to run the company, Belfast Telegraph relates.

According to Belfast Telegraph, the court agreed that Mrs. Ferris
had failed to act in the best interests of the company by
misrepresenting assets in financial accounts for the years ending
August 2001 and 2002, in that fixed assets belonging to the firm
worth just under GBP0.8 million were not in the name of the
company.

Halfway House Ltd. was a country pub and restaurant in Co Down.


HEATHROW FINANCE: Fitch Assigns 'BB+' Rating to GBP250MM Bonds
--------------------------------------------------------------
Fitch Ratings has assigned Heathrow Finance plc's proposed GBP250
million issue of high yield (HY) bonds an expected 'BB+(EXP)'
rating with Stable Outlook.  The expected rating is in line with
the 'BB+' rating of the existing GBP600 million HY notes.

Despite a marginal increase in gross EBITDA leverage (by 0.15x),
Fitch views London Heathrow airport's (LHR) credit metrics as
solid for its 'BB+'-rated instruments as the airport continues to
benefit from a low interest rate environment and strong operating
performance.

The proposed notes contain a higher covenanted debt to regulatory
asset base (RAB) ratio of 92.5%, compared with 90% for the
existing notes.  As a result, Fitch has also reviewed the option
available to management to gradually increase the existing
ratio -- currently at 85% for both the proposed and existing
notes -- to 87.5% in the medium term, in line with management's
current guidance to maintain headroom of five percentage points
below the covenant level.

KEY RATING DRIVERS

Fitch's ratings are based on these factors, among others:

Volume Risk -- Stronger

LHR is a large hub/gateway airport serving a very strong origin
and destination market.  It experienced strong traffic growth of
3.4% in 2013 (up from 0.9% in 2012), and has so far this year
shown continued signs of positive trend as traffic rose year-on-
year 1.6% in the first eight months of 2014.

From a long-term perspective, LHR benefits from resilient traffic
performance with a maximum peak-trough fall in traffic of just
4.4% through the recent economic crisis (which was one of the
strongest in the industry).  This is due to a combination of
factors which Fitch views as stable over time, namely: the
attractiveness of London as a world business center; the role of
LHR as a hub offering very strong yield for its resident
airlines; the location and connectivity of LHR with the well-off
western and central districts of the city; and unsatisfied demand
as underlined by the capacity constraint at LHR (with only two
runways), which also helps absorbing shocks.

Price Risk - Midrange

LHR is subject to economic regulation, with a price cap
calculated under a single till methodology based on RPI+X, and is
currently set at RPI-1.5% for the new five-year regulatory
period, which started in April 2014 (down from RPI+6.5% in the
previous Q5 period).  The cap is set for five years by an
independent regulator, the CAA, which, among its duties, ensures
that airports' operations and investments remain financeable.

The price cap is established to offset LHR's significant market
power and is highly sensitive to the assumptions made by the
regulator on several building blocks such as cost of capital,
traffic forecast and operational efficiency.  The regulatory
process that leads to the cap determination is transparent but
creates material uncertainty every five years.  Price cap
settlements can prove detrimental to the airport, as CAA's
assumptions can be aggressive.  For example, the traffic forecast
for Q5 was calculated before the 2007-2008 crisis and proved
overly optimistic.  This was, however, partly offset by higher-
than planned inflation.

Infrastructure Development / Renewal - Stronger

LHR aims to implement a detailed capital investment plan, agreed
to by the regulator.  The new plan for Q6 with around GBP3.5
billion of investment is more modest than Q5 (at over GBP5
billion) and Fitch does not expect any major issues, particularly
in light of LHR's overall sound track record in delivering
projects on time and on budget.  The regulated asset base
approach allows for the self-financing of the investments through
tariffs.  After the delivery of a brand new T2 in 2014, LHR will
mostly feature state-of-the art terminals.  The building of a
third runway is currently being reviewed (among other options
from other airports) by the Airports Commission with final
recommendation due in summer 2015.

Debt Structure - Midrange (Class A) / Weaker (Class B and HY)

Class A debt benefits from its seniority and protective debt
structure (ring-fencing of all cash flows from LHR and a set of
covenants limiting leverage).  It is exposed to some hedging and
refinancing risk, which is mitigated by the issuer's strong
capital market access, due to an established multi-currency debt
platform and the use of diverse maturities.  The class B and HY
notes have a weaker debt structure due to their subordination.

Credit Metrics

Fitch's rating case reflects CAA's final decisions for Q6, in
particular with regard to traffic growth with a five-year CAGR of
0.5%.  The notable differences are with regard to inflation with
the RPI over the forecast horizon lower by 100bps (at 2.4% on
average in Q6, in line with current RPI), less efficiency savings
achieved (with over GBP200 million higher opex in Q6) and new
debt cost higher by 200bps in year two and five (with senior debt
all-in-cost at 7.3%), reflecting adverse financing conditions.

Under Fitch's rating case, EBITDA is expected to grow at a 5-year
CAGR of 3.3% (from GBP1,421 million in 2013), which should allow
LHR to maintain post-maintenance and tax interest cover ratios
(PMICR) for each class of debt at levels above Fitch's rating
thresholds. The average PMICR over Q6 for the 'A-'-rated class A
bonds is around 1.71x (up from 1.68x), for the 'BBB'-rated class
B bonds 1.39x (1.36x) and the 'BB+'-rated HY bonds 1.25x (1.26x)
with dividend cover at holdco level over 3.0x.  The Fitch-
calculated net senior leverage ratio remains at around 7x for the
next five years, well within criteria guidance for strong hub
airports.

RATING SENSITIVITIES

The Stable Outlook reflects Fitch's expectation that LHR will
continue to see stable performance, despite challenging economic
prospects.  A marked and sustained slowdown of the UK economy
could derail LHR's record of resilience.  Evidence of
recessionary prospects over a prolonged horizon (two years) or
failure to achieve operational efficiency gains could prompt a
revision of the Outlook to Negative.

On the contrary, a material and sustainable improvement in the
economic environment could support higher load factors and use of
larger aircrafts by airlines, in turn improving the passenger
throughput at LHR with a favorable impact on credit ratios.
Downgrade triggers

Class A notes: net debt / EBITDA above 8.5x or average PMICR
below 1.6x

HY notes: net debt / EBITDA above 9x or PMICR below 1.15x or
dividend cover below 3.0x

Upgrade triggers
Class A notes: net debt / EBITDA below 7x or average PMICR above
1.8x

HY notes: An upgrade is unlikely given LHR's capital structure
management and subsequent targeting of HY investors


PKS EVENTS: In Liquidation, Scraps Castle Hill Car Festival
-----------------------------------------------------------
North Devon Journal reports that the Castle Hill Car Festival is
no more as the company which organises the festival is going into
liquidation.

PKS Events ran the festival for the last two years but poor
weather, confusion and fewer visitors have prompted the company
to voluntarily liquidate, according to North Devon Journal.

The report recalls that in May the Filleigh-based festival's
organizers announced the festival had been cancelled due to
"circumstances beyond our control," after being "badly let down."

One of the directors of PKS Events Kieron Freeburn believes bad
weather and problems with card payments put people off this year,
the report relays.

"Unfortunately after two years the festival is no longer viable.
The losses due to poor visitor numbers are too much for a small
business to bear. We're just another victim of the weather and
sadly we're losing another UK car festival," the report quoted
Mr. Freeburn as saying.

The report discloses that one of the company's creditors, Lyndsay
Young from Holsworthy Hire Services, believes the company's
hiding behind bureaucracy.

Mr. Young is owed more than GBP1,600 for erecting signs and
providing fire safety equipment.

Meetings is said to have been held on September 30 at the office
of Exeter based accountants Bishop Fleming to explain the
situation to creditors.


PUNCH TAVERNS: Obtains Approval for Debt Restructuring Plan
-----------------------------------------------------------
Roger Blitz at The Financial Times reports that nearly two years
after Punch Taverns began talks to restructure US$2.3 billion of
debt, the pub group has finally gained the approval required for
its proposals to be accepted, paving the way for completion on
Wednesday.

The group inserted the last piece of a complex jigsaw by
announcing that Royal Bank of Scotland had consented to the
restructuring proposals, five days after Lloyds Bank gave its
backing, the FT relates.

The two banks provide overdrafts to two Punch securitizations
while RBS also provides hedging arrangements, the FT discloses.

"All shareholder, noteholder and securitization creditor
approvals have now been obtained," the FT quotes the company as
saying.  New shares was set begin trading yesterday, Oct. 8, and
will rank alongside existing shares, according to the FT.

Punch's restructuring talks have been a tortuous affair,
requiring several deadline extensions, the FT relays.

The deal cuts net debt by a quarter to GBP1.8 billion and leaves
the bondholders in charge of 85 per cent of the equity after a
heavy dilution of existing shareholders, the FT states.

Punch was highly leveraged in the early 2000s as it sought rapid
expansion of its estate, a situation that left it heavily exposed
when the smoking ban, beer duties and the global downturn hit the
pub industry, the FT recounts.

Punch has frequently warned interested parties about the risk of
default if the talks broke down, the FT notes.

Punch Taverns plc is a United Kingdom-based pub company.  The
Company is engaged in the operation of public houses under either
the leased model or as directly managed by the Company.  The
Company operates in two business segments: punch partnerships, a
leased estate and punch pub company, a managed estate.


REACT ENERGY: Kedco Subsidiary Enters Voluntary Liquidation
-----------------------------------------------------------
Alliance News reports that React Energy PLC said its subsidiary,
Kedco Fabrication Ltd, has entered into creditors' voluntary
liquidation following shareholder and creditor meetings held on
September 29.

The total amount of net debt owed by Kedco Fabrication to
creditors is GBP1.5 million, of which GBP1.4 million is owed to
React Energy, according to Alliance News.

As from September 29, the balance sheet of Kedco Fabrication will
no longer be consolidated into REACT's reported results, it said,
the report notes.

The Directors of Kedco Fabrication are Gerry Madden and Brendan
Halpin, who are also directors of REACT.

On September 12, Kedco was informed it would not have a future as
an engineer, procure and construct provider for the Newry Biomass
project in Northern Ireland, by the Directors of Newry Biomass
Ltd, leading to REACT organising the meeting with shareholders
and creditors to seek liquidation of the company, the report
relates.


TODS MURRAY: Acquisition Leaves 50 Posts at Risk
------------------------------------------------
Daily Record reports that the acquisition at the start of this
month of Tods Murray by Shepherd & Wedderburn means that nearly a
third, 50 out of 160, of the Tods Murray personnel are unsure
about their jobs.

Of the 160, there are 18 who are joining Shepherd & Wedderburn as
partners, another five joining as directors and seven joining as
consultants, according to Daily Record.

But the remaining employees have been notified that a 45-day
redundancy selection process is starting this week, the report
notes.  At the moment, the joint firm has a total headcount of
564 including 82 partners.

Tods Murray went into administration and was bought out by the
larger firm, the report relates.

                          Administration

The report relays that Lorna Jack, chief executive of the Law
Society of Scotland said, "We are very sad to hear that Tods
Murray has gone into administration."

The report said Tods Murray represents the loss of a long
established and very highly regarded Scottish law firm.  Law
firms were hit hard by the recession which, combined with the
ongoing, significant changes within the legal services sector, is
continuing to have an impact, the report adds.


                            *********

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

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

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


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *