TCREUR_Public/141022.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, October 22, 2014, Vol. 15, No. 209

                            Headlines

B U L G A R I A

CORPORATE COMMERCIAL: Bulgaria Central Bank Breached Deposit Law


F R A N C E

ARKEMA: Moody's Assigns '(P)Ba1' Rating to New Hybrid Notes
GENERALE DE SANTE: Moody's Assigns 'Ba3' Corporate Family Rating
SPIE BONDCO 3: S&P Raises CCR to 'B+'; Outlook Stable


H U N G A R Y

MKB BANK: S&P Affirms & Withdraws Unsolicited 'Bpi' Rating


I R E L A N D

ALLIED IRISH: Irish High Court Approves Capital Reduction


I T A L Y

MONTE DEI PASCHI: May Book Loss on Swaps Amid ECB Review
ITALY: Must Exit Euro to Avoid Default, M5S Leader Says


K A Z A K H S T A N

KAZAKHSTAN'S FUND: Moody's Assigns B2 Long Term Issuer Rating
KAZKOMMERTS-POLICY: S&P Puts 'B+' Rating on CreditWatch Negative


L U X E M B O U R G

RIOFORTE INVESTMENTS: Collapse Unlikely to Impact Oi Operations


N E T H E R L A N D S

SCEPTRE CAPITAL 2006-5: S&P Puts CCC+ Rating on CreditWatch Pos.
SCHAEFFLER HOLDING: Moody's Rates New Secured Bonds 'B1'


P O L A N D

JASTRZEBSKA SPOLKA: Moody's Assigns '(P)Ba2' Corp. Family Rating
JASTRZEBSKA SPOLKA: Fitch Assigns 'B+(EXP)' Long-Term IDR


P O R T U G A L

BANCO ESPIRITO: Novo Banco Nears Rescue Deal for Angolan Unit


R U S S I A

ALFA-BANK: Moody's Changes Outlook on Ba1 Sr. Debt Rating to Neg.


S P A I N

SANTANDER HIPOTECARIO 9: Moody's Lifts Rating on EUR162.5MM Notes
TDA 22 MIXTO: Moody's Raises Rating on EUR6MM C2 Notes to 'Ba3'


U N I T E D   K I N G D O M

CATERHAM SPORTS: In Administration, Jobs at Risk
LLANDEGLA HOTEL: Closes Amid Plans for Private Home
OUTDOOR MEGASTORE: Shuts Operations in September, 20 Jobs Lost
PRITCHARD STOCKBROKERS: Failed to Protect Client Funds


X X X X X X X X

* Fitch Launches Additional Tier 1 Tracker Tool


                            *********


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B U L G A R I A
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CORPORATE COMMERCIAL: Bulgaria Central Bank Breached Deposit Law
----------------------------------------------------------------
Viktoria Dendrinou at The Wall Street Journal reports that the
European Union's banking watchdog said Bulgaria's central bank
and deposit insurance fund were breaching the bloc's deposit-
guarantee law by not allowing depositors to access their savings
at Bulgaria's Corporate Commercial Bank.

The recommendation by the London-based European Banking Authority
(EBA) comes after the watchdog opened an investigation last month
into whether measures taken by Corpbank's temporary management
breached an EU law that requires depositors to be compensated for
up to EUR100,000 (US$127,851) no later than 25 working days after
they first were unable to access their deposits, the Journal
notes.

Bulgaria's central bank placed Corpbank, the country's fourth
largest lender by assets, under its administration and suspended
shareholders' rights in June after a run drained the bank of cash
to meet client demands, the Journal recounts.  The lender
suspended all client payments after it ran out of liquidity, the
Journal discloses.

According to the Journal, in its recommendation, the EBA asked
the Bulgarian National Bank to ensure that depositors at Corpbank
and its subsidiary, Commercial Bank Victoria, have access to
deposits protected under EU law by Oct. 21.

The EBA said the central bank should either lift any obstacles
depositors have to accessing their money as a result of its
temporary management of the bank or trigger payouts of claims by
the deposit-insurance fund, the Journal relates.

If the central bank fails to take one of these measures, the EBA,
as cited by the Journal, said, the insurance fund should pay out
the claims to depositors.

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.



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F R A N C E
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ARKEMA: Moody's Assigns '(P)Ba1' Rating to New Hybrid Notes
-----------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)Ba1 long-
term rating to the proposed issuance of Undated Deeply
Subordinated Fixed to Reset Rate Notes by Arkema. The size and
completion of the Hybrid remain subject to market conditions.

In September 2014, Arkema announced its decision to acquire
leading global adhesive producer Bostik for an enterprise value
of EUR1.74 billion. The company intends to issue approximately
hybrid securities of between EUR600 and EUR700 million to fund
part of this transaction.

Ratings Rationale

The rating of (P)Ba1 is two notches lower than Arkema's Baa2
senior unsecured issuer rating. This reflects the deeply
subordinated position of the proposed Hybrid securities in
relation to the existing senior unsecured obligations of Arkema
rated Baa2.

The proposed Hybrid is perpetual, has no events of default and
Arkema can opt to defer coupons on a cumulative basis. The Hybrid
is a deeply subordinated obligation and will qualify for the
"basket C" and a 50% equity treatment of the borrowing for the
calculation of the credit ratios by Moody's (please refer to
Moody's Cross-Sector Rating Methodology 'Revisions to Moody's
Hybrid Tool Kit' of July 2010).

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

As the Hybrid rating is positioned relative to another rating of
Arkema, either (i) a change in the senior unsecured rating of
Arkema, or (ii) a re-evaluation of its relative notching, could
impact the Hybrid rating.

Negative rating pressure could arise should Arkema fail to (i)
execute its acquisition financing or (ii) improve its operating
profitability and cash flow generation in order to shore up its
financial profile and bring its credit metrics back in line with
Moody's guidance for the Baa2 rating, including retained cash
flow to net debt in the high-20s.

While any upward rating pressure is unlikely to develop at this
juncture considering the negative outlook currently maintained on
the rating, the sustainable expansion of the group's EBITDA
margin into the high teens supporting some permanent
strengthening in financial profile, may lead to a rating upgrade.

The principal methodology used in this rating was Global Chemical
Industry Rating Methodology published in December 2013.

Headquartered in Colombes, France, Arkema is a leading specialty
chemicals group. In 2013, it reported consolidated sales of
EUR6.1 billion and EBITDA of EUR902 million.


GENERALE DE SANTE: Moody's Assigns 'Ba3' Corporate Family Rating
----------------------------------------------------------------
Moody's Investors Service has assigned a definitive Ba3 corporate
family rating (CFR) to Generale de Sante (GdS). Concurrently,
Moody's has assigned a B1-PD probability of default (PDR) rating
to GdS and assigned a definitive Ba3 rating to the company's
EUR1075 million loan facility. The outlook on the ratings is
stable.

Ratings Rationale

Assignment of Definitive Ba3 CFR

Moody's definitive rating assignments are in line with the
provisional ratings assigned on July 10, 2014. Moody's rating
rationale was set out in a press release issued on that date.

On October 1, 2014, Ramsay Health Care (UK) Limited (Ramsay) and
Predica acquired 83.4% of the share capital of GdS after having
received clearance from French authorities. On October 13, they
filed a mandatory offering for the remaining outstanding shares
with the French financial markets regulator. Following the
completion of the mandatory offering -- expected to be finalized
by mid-November -- GdS and Ramsay Sante SA will be merged
together . Whilst this process may last up to nine months from
the acquisition closing date (i.e. 1st October) , Moody's
understands the final capital structure will consist of the
EUR1075 million loan facility (including an undrawn EUR100
million RCF and undrawn EUR75 million capex/acquisition facility)
and approximately EUR213 million of finance leases following the
merger. The assignment of definitive ratings reflect Moody's
assumption that the remaining steps of the transaction will
conclude as outlined above.

The Ba3 CFR assigned to GdS primarily reflects (1) GdS' high
leverage, which Moody's estimates to be above 5.0x adjusted
debt/EBITDA pro-forma for the debt-issuance; (2) the rating
agency's expectations of continued pressure on tariffs, which, in
view of the company's largely fixed-cost structure, may constrain
the prospects of profitability improvement; (3) a certain degree
of event risk, as GdS continues to play an active role in the
consolidation of the French private hospital market.

These factors are balanced to an extent by (1) the company's
large scale and leading positioning within the market for French
private hospital providers; (2) the industrial ownership through
Ramsay Health Care; (3) GdS' overall high degree of visibility in
terms of future operating performance, which is supported by the
role of social security as the payor; (4) favorable demographics,
which should continue to drive volume growth and thereby mitigate
some of the anticipated pressure from tariff reductions allowing
for continued solid adjusted EBITDA margins of around 20%; (5)
the overall high barriers to entry resulting from the need to
obtain necessary authorizations and attract qualified personnel.

Assignment of B1-PD PDR

The PDR of B1-PD reflects an all bank-debt capital structure to
which Moody's applies a 65% recovery rate.

Assignment of Definitive Ba3 to Loan Facility

The definitive Ba3-rating assigned to the company's EUR1075
million loan facility reflects its positioning in the waterfall
as governed by an intercreditor-agreement. The loan facility
benefits from upstream guarantees from the operating subsidiaries
equivalent to at least 75% of EBITDA and is secured on collateral
essentially consisting of share pledges.

Liquidity

Moody's expects that GdS will maintain a good liquidity profile
over the next 12-18 months. The liquidity profile is supported by
cash balances of around EUR60 million as of October 1, the rating
agency's expectations of positive free cash flows as well as
access to the undrawn EUR100 million RCF and the undrawn EUR75
million capex/acquisition facility. Moody's expects headroom to
GdS' financial maintenance covenant to remain satisfactory.

Rationale for Stable Outlook

The stable outlook on the rating reflects Moody's expectation
that, going forward, GdS will be focusing on de-leveraging
allowing for its leverage -- defined as adjusted gross
debt/EBITDA -- to move below 5x over the next 18 months.
Moreover, the stable outlook factors in expectations of a modest
organic growth over the next 2-3 years as the rating agency
anticipates the pressure on tariffs to be offset by volume
growth. Whilst minor bolt-on acquisitions can be accommodated,
the current rating does not leave flexibility for larger debt-
financed acquisitions over the next 12-18 months.

What Could Change the Rating Up/Down

Positive pressure on the rating could develop if GdS' operating
performance continues to improve, allowing for the company's
leverage, measured by debt/EBITDA, to move to below 4.5x.
Conversely, negative pressure could develop if GdS' leverage
remains sustainably above 5x or if the company's liquidity
weakens.

Principal Methodologies

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

GdS is a France-based private hospital company. It serves around
1.3 million customers in its 105 facilities. For the financial
year ended 31 December 2013, the combined entity had pro-forma
total revenues of EUR2.1 million and EBITDAR of EUR417 million.


SPIE BONDCO 3: S&P Raises CCR to 'B+'; Outlook Stable
-----------------------------------------------------
Standard & Poor's Ratings Services raised to 'B+' from 'B' its
long-term corporate credit ratings on French multi-technical
services provider Spie Bondco 3 S.C.A (Spie) and its indirect
subsidiary, Financiere SPIE.  The outlook is stable.

At the same time, S&P raised to 'B+' from 'B' the issue ratings
on the EUR100 million capital expenditure (capex) facility due
2017, the EUR200 million revolving credit facility (RCF) due
2017, the EUR400 million bank loan due in 2018, and the EUR585
million term loan B due in 2018, issued by Clayax Acquisition 4
SAS and guaranteed by Financiere SPIE.  The recovery rating on
these instruments is '4'.

In addition, S&P raised to 'B-' from 'CCC+' the issue rating on
the EUR375 million notes due in 2019, issued by Spie Bondco 3 and
guaranteed by Financiere SPIE.  The recovery rating on this
instrument is '6'.

S&P has removed all ratings from CreditWatch positive.

The upgrade reflects S&P's view that Spie's recent acquisition of
Germany-based Hochtief Service Solutions (Hochtief) has reduced
the group's reliance on its home market, thereby improving the
group's geographic diversity.  The upgrade also takes into
account S&P's view that Spie's European growth strategy to
enlarge its presence through small bolt-on acquisitions in
countries such as Germany and the U.K., will improve the group's
geographic diversity.

Another factor S&P' considers is the ongoing growth and
improvement in Spie's profitability on an organic basis.  It
continues to benefit from low earnings volatility and a
diversified customer base.  These factors are partly offset by
the group's below-average adjusted EBITDA margins compared with
those of other facilities services providers S&P rates (typically
10%-20%).  S&P therefore now assess Spie's business profile as
"satisfactory," an upward adjustment from S&P's previous
assessment of "fair."

With the postponement of Spie's proposed IPO, S&P maintains its
assessment of the company's financial risk profile at "highly
leveraged."

S&P's base-case operating scenario includes these assumptions:

   -- A gradual improvement in European economies, with notably
      an increase in French GDP of 0.7% in 2014 and 1.4% in 2015.

   -- Reported revenue growth of about 10% in 2014, thanks to the
      full-year consolidation of the recently acquired Hochtief,
      and of about 3% thereafter.

   -- A stable adjusted EBITDA margin of about 8% in 2014, as
      Spie offsets the dilutive effect of Hochtief by
      productivity gains, followed by a slight improvement in
      2015.

Based on these assumptions, S&P arrives at these credit measures
for 2014 and 2015:

   -- Adjusted FFO to debt of about 7%-8%.
   -- Adjusted debt to EBITDA of about 6.3x-6.1x.
   -- Adjusted EBITDA interest coverage of approximately 2.5x.
   -- Adjusted free operating cash flow (FOCF) of roughly EUR200
      million.
   -- About EUR5 million in dividends per year.

The stable outlook reflects S&P's view that Spie's operating
performance will remain steady for the rest of the year and
throughout 2015.  S&P expects that generated cash flow will be in
line with credit metrics commensurate with a "highly leveraged"
financial risk profile for the rest of 2014.  This includes
adjusted FFO to debt of about 7% and adjusted debt to EBITDA of
weaker than 6x.  S&P assumes that over time, Spie will maintain
interest coverage of at least 2x, slowly improve its ratio of FFO
to debt, and continue to generate FOCF.

S&P could consider taking a negative rating action if unexpected
adverse operating developments--such as sudden contract losses
with established clients resulting in a sizable shortfall in
sales and earnings--put pressure on Spie's ability to service its
debt. This could cause EBITDA cash interest coverage to fall
below 2x. The ratings could also come under downward pressure if
Spie's FOCF turns negative following operating shortfalls.

S&P could consider a positive rating action if Spie's FFO to debt
moves permanently toward 15% -- a level that would require a deep
change in the capital structure.  Changes might include a
conversion of the company's shareholder loan (which S&P treats as
debt) to equity, a refinancing of the group's Senior Credit
Facilities Agreement, or raising funds to pay down debt through
deleveraging.



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H U N G A R Y
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MKB BANK: S&P Affirms & Withdraws Unsolicited 'Bpi' Rating
----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its unsolicited
public information (pi) ratings on Hungarian banks MKB Bank ZRT
(MKB) at 'Bpi', on Central-European International Bank Ltd.
(CIB) at 'BBpi', and on K&H Bank at 'BBpi'.  S&P subsequently
withdrew these ratings, due to lack of market interest.

S&P does not rate any currently outstanding debt on these banks.

The affirmations followed ongoing losses reported at MKB and CIB
over the past four years and all three banks in the first half on
2014.  The recent losses include large provisions created for
foreign exchange-rate differential to be reimbursed to customers.
However, the actual cost of these foreign currency loan refunds
could be higher, which could further strain the banks' bottom-
line results over the next few quarters.  S&P therefore expects
results at MKB, CIB, and K&H to remain poor and constrained over
the next 12 to 18 months, but to improve gradually thereafter.

The banks' business profiles remain weak and limited by low
credit demand in Hungary, especially in the corporate sector.
They are also constrained by uncertainties surrounding the banks'
future ownership structures and strategies to be adopted amid an
unfavorable operating environment, including a series of banking
levies, a transaction tax, and a loan compensation ruling.

Capitalization levels have remained relatively stable due to
capital support by parent banks to cover ongoing reported losses
in recent years.  S&P expects earnings to remain poor over 2014
and 2015, owing to the challenging operating environment coupled
with the government measures imposed on Hungarian banks.  Asset
quality continues to be weak and S&P do not expect material
improvement in the foreseeable future.  These banks continue to
face high risks in their loan book.  This is due to the fragile
economic environment and some troubled sectors in which they
operate, such as project and commercial real-estate financing.



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ALLIED IRISH: Irish High Court Approves Capital Reduction
---------------------------------------------------------
Allied Irish Banks announced that the Irish High Court has
approved the Company's application to confirm a special
resolution to a) cancel (i) the capital redemption reserve of
EUR3,926,055,941 resulting from the cancellation of the Deferred
Shares created by the subdivision of ordinary shares and (ii) an
amount of EUR1,073,944,058 standing to the credit of the Bank's
share premium account, and b) treat the EUR5 billion reserve
resulting from (i) and (ii) as profits available for
distribution, as defined by section 45 of the Companies
(Amendment) Act 1983.  The taking of any action that utilizes
distributable reserves at a future date, as and when conditions
permit will be subject to all relevant approvals.  The reduction
will become effective when the High Court order is registered
with the Companies Registration Office.

The reduction of the share capital has no impact on ordinary
shareholders, the operating performance of the bank or the
Group's capital ratios.

AIB currently has 523,438,445,437 ordinary shares in issue, of
which 99.8% are held by the National Pensions Reserve Fund
Commission, with 500 billion of the ordinary shares issued to the
NPRFC in July 2011 at a price of EUR0.01 per share.  Based on the
number of shares currently in issue and the closing share price
at Oct. 14, 2014, AIB trades on a valuation multiple of c. 7x
(excluding 2009 Preference Shares) June 30, 2014 Net Asset Value
(NAV).  The Group continues to note that the median for
comparable European banks is c.1x NAV.

For further information, please contact:

   David O'Callaghan,
   Company Secretary,
   Allied Irish Banks, p.l.c.
   Tel: +353-1-660 0311

                      About Allied Irish Banks

Allied Irish Banks, p.l.c. -- http://www.aibgroup.com/-- is a
major commercial bank based in Ireland.  It has an extensive
branch network across the country, a head office in Dublin and a
capital markets operation based in the International Financial
Services Centre in Dublin.  AIB also has retail and corporate
businesses in the UK, offices in Europe and a subsidiary company
in the Isle of Man and Jersey (Channel Islands).

Since the onset of the global and Irish financial crisis, AIB's
relationship with the Irish Government has changed significantly.

As at Dec. 31, 2010, the Government, through the National Pension
Reserve Fund Commission ("NPRFC"), held 49.9% of the ordinary
shares of the Company (the share of the voting rights at
shareholders' general meetings), 10,489,899,564 convertible non-
voting ("CNV") shares and 3.5 billion 2009 Preference Shares.  On
April 8, 2011, the NPRFC converted the total outstanding amount
of CNV shares into 10,489,899,564 ordinary shares of AIB, thereby
increasing its holding to 92.8% of the ordinary share capital.

In addition to its shareholders' interests, the Government's
relationship with AIB is reflected through formal and informal
oversight by the Minister and the Department of Finance and the
Central Bank of Ireland, representation on the Board of Directors
(three non-executive directors are Government nominees),
participation in NAMA, and otherwise.

Allied Irish Banks reported a loss of EUR1.59 billion on EUR1.34
billion of net interest income for the year ended Dec. 31, 2013,
as compared with a loss of EUR3.55 billion on EUR1.10 billion of
net interest income in 2012.  Allied Irish incurred a net loss of
US$2.32 billion in 2011.

At Dec. 31, 2013, the Company had EUR117.73 billion in total
assets, EUR107.24 billion in total liabilities and EUR10.49
billion in total shareholders' equity.



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I T A L Y
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MONTE DEI PASCHI: May Book Loss on Swaps Amid ECB Review
--------------------------------------------------------
Sonia Sirletti and Elisa Martinuzzi at Bloomberg News, citing la
Repubblica, report the European Central Bank review of Banca
Monte dei Paschi di Siena SpA's accounts may lead Italy's third
biggest lender to revise its accounts to book a EUR600 million
(US$766 million) loss on derivatives currently entered as loans.

According to Bloomberg, la Repubblica noted that by recasting the
transactions as credit-default swaps, the bank would book a loss
that reflects the widening of Italian government-bond spreads.

Financial rule-setters, including the International Financial
Reporting Standards, earlier this year reviewed how such
transactions should be booked, Bloomberg discloses.

Deutsche Bank AG, which organized one of Paschi's transactions,
said on Jan. 29 it had adjusted how it accounted for the deal
after a probe by German regulators uncovered information that
changed the nature of the transaction, without elaborating,
Bloomberg recounts.

Banca Monte dei Paschi di Siena SpA -- http://www.mps.it/-- is
an Italy-based company engaged in the banking sector.  It
provides traditional banking services, asset management and
private banking, including life insurance, pension funds and
investment trusts.  In addition, it offers investment banking,
including project finance, merchant banking and financial
advisory services.  The Company comprises more than 3,000
branches, and a structure of channels of distribution.  Banca
Monte dei Paschi di Siena Group has subsidiaries located
throughout Italy, Europe, America, Asia and North Africa.  It has
numerous subsidiaries, including Mps Sim SpA, MPS Capital
Services Banca per le Imprese SpA, MPS Banca Personale SpA, Banca
Toscana SpA, Monte Paschi Ireland Ltd. and Banca MP Belgio SpA.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on Sept. 18,
2013, Fitch downgraded MPS's Viability Rating (VR) to 'ccc' from
'b' and removed it from Rating Watch Negative (RWN).

TCR-Europe also reported on June 19, 2013, that Standard & Poor's
Ratings Services lowered its long-term counterparty credit rating
on Italy-based Banca Monte dei Paschi di Siena SpA (MPS) to 'B'
from 'BB', and affirmed the 'B' short-term rating.  S&P also
lowered its rating on MPS' Lower Tier 2 subordinated notes to
'CCC-' from 'CCC+'.  S&P affirmed the ratings on MPS' junior
subordinated debt at 'CCC-' and on its preferred stock at 'C'. At
the same time, S&P removed the ratings from CreditWatch, where it
placed them with negative implications on Dec. 5, 2012.


ITALY: Must Exit Euro to Avoid Default, M5S Leader Says
------------------------------------------------------
ANSA reports that Beppe Grillo, the leader of the anti-
establishment 5-Star Movement (M5S), said Tuesday that Italy must
exit the euro to avoid a Greek-style financial meltdown.

"Let's take back monetary sovereignty and emerge from the
nightmare of bankruptcy via default . . . to not end up like
Greece," ANSA quotes Mr. Grillo, who has launched a drive for
Italy to hold a referendum on the euro, as saying on his blog.

"Out of the euro or default.  There are no alternatives.  The
interest on public debt is killing the country and dismantling
the welfare state."

The comedian-turned-politician returned to his popular blog,
which gave life to the Internet-based M5S in 2009, a day after
causing a stir on it by calling for undocumented migrants to be
expelled from Italy if they are not found to be refugees, ANSA
discloses.

"People who enter Italy on migrant boats are perfect strangers,"
Mr. Grillo, whose movement captured a quarter of the vote at last
year's general election, as cited by ANSA, said.  "They should be
identified immediately.



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K A Z A K H S T A N
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KAZAKHSTAN'S FUND: Moody's Assigns B2 Long Term Issuer Rating
-------------------------------------------------------------
Moody's Investors Service has assigned Ba2 long-term and Not
Prime short-term local- and foreign-currency issuer ratings to
Kazakhstan's Fund of Financial Support for Agriculture (FFSA).
The long-term ratings carry a stable outlook. Moody's has also
assigned a Baa1.kz national scale rating to FFSA.

Ratings Rationale

In accordance with Moody's government-related issuer (GRI) rating
methodology, FFSA's Ba2 long-term issuer ratings reflect the
combination of the following inputs:

- A baseline credit assessment (BCA) of b1

- Kazakhstan's Baa2 government bond rating

- Moody's assessment of a moderate probability of government
support; and

- Moody's assessment of a high default dependence

Baseline Credit Assessment

The BCA of b1 is underpinned by the standalone strength of FFSA
and reflects the institution's strong financial fundamentals,
evidenced by its substantial capital buffers, adequate
profitability and favorable repayment schedule for the next four
years. The BCA also reflects FFSA's risky and rapidly growing
loan portfolio, as well as the cyclical nature of the agriculture
sector and the volatile operating environment in Kazakhstan.

FFSA's policy role is to promote business development and to
foster job creation in Kazakhstan's remote rural territories
through the provision of low-cost micro-loans mostly to the rural
population. This remit determines FFSA's risky asset profile,
because many loans are of an investment nature and are originated
to finance start-ups and business expansion in the risky small
business segment. In recent years, FFSA has been rapidly
expanding its loan book, backed by substantial long-term
government funding and capital injections. As at year-end 2013,
problem loans (individually impaired loans) accounted for 6.4% of
gross loans, despite a trend of rapid loan book growth that
Moody's expects to continue in 2014 (after growth of 73% in 2013
and 40% in 2012).

In Moody's view, the risks associated with FFSA's loan portfolio
are mitigated by the company's yet low leverage, with an equity-
to-assets ratio of 48.2%(unaudited) as at end-June 2014 that, in
turn, provides a significant loss absorption cushion to the
company, thereby protecting creditors. FFSA's profitability is
also strong, despite its predominantly not-for-profit mandate.
The company's pre-provision income accounting for a strong 4.5%
of average assets in 2013 (adjusted for accrued but unpaid
interest expenses).

Moody's expects a sustained build-up of FFSA's leverage, as the
company plans to rapidly increase its loan book in the next few
years. The rating agency notes that recently attracted funds will
mature in 2018-19; therefore FFSA will maintain a favorable
repayment schedule over the next four years.

Moody's Joint Default Analysis Framework

In accordance with Moody's rating methodology for Government
Related Issuers (GRIs), FFSA's ratings incorporate ratings uplift
based on the rating agency's assumption of a "moderate"
probability of government support, given (1) the institution's
development mandate and its role in terms of policy
implementation; (2) its support to the agriculture sector; and
(3) its full government ownership with no intention to privatize.

Consequently, given the aforementioned support assumptions,
Moody's incorporates two notches of rating uplift from FFSA's BCA
of b1 -- which position FFSA's issuer ratings three notches lower
than Kazakhstan's sovereign rating of Baa2 (positive outlook).

What Could Move the Ratings Up/Down

A sustained track record of strong asset performance and
maintenance of healthy capital and liquidity profiles could have
upward rating implications for the institution.

Downwards pressure on FFSA's issuer rating would develop if
Kazakhstan's sovereign rating faces negative pressure. In
addition, any indication of a weakening of the Kazakhstan
authorities' willingness to support FFSA or other state-owned
companies that facilitate development of the agriculture sector
could negatively affect FFSA's issuer rating. Concurrently,
FFSA's issuer rating would be negatively affected by any
deterioration in asset quality and profitability as well as any
evidence of increasing leverage beyond the level currently
anticipated by Moody's.

Principal Methodologies

The methodologies used in this rating were Government-Related
Issuers: Methodology Update published in July 2010, and Global
Banks published in July 2014.

Moody's National Scale Credit Ratings (NSRs) are intended as
relative measures of creditworthiness among debt issues and
issuers within a country, enabling market participants to better
differentiate relative risks. NSRs differ from Moody's global
scale credit ratings in that they are not globally comparable
with the full universe of Moody's rated entities, but only with
NSRs for other rated debt issues and issuers within the same
country. NSRs are designated by a ".nn" country modifier
signifying the relevant country, as in ".za" for South Africa.


KAZKOMMERTS-POLICY: S&P Puts 'B+' Rating on CreditWatch Negative
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it has placed on
CreditWatch with negative implications its 'B+' long-term
counterparty credit and insurer financial strength ratings and
its 'kzBBB-' Kazakhstan national scale rating on Insurance Co.
Kazkommerts-Policy JSC (KKP).

The CreditWatch placement reflects a similar rating action on
Kazkommertsbank (KKB).  Kazakhstan-based KKB acquired 46.5% of
BTA Bank earlier this year and obtained operational control over
it. KKB subsequently executed a share buyback, which weakened its
capitalization on a consolidated basis.

Meanwhile, S&P considers KKP to be a strategically important
subsidiary of its parent, KKB, based on S&P's group rating
methodology.  S&P does not, however, add any notches of support
to the rating on KKP, considering that the insurer's 'b+' stand-
alone credit profile is one notch higher than the 'b' group
credit profile of KKB.  As defined by S&P's group rating
criteria, it considers the company to be insulated from its
parent and, therefore, able to have a rating higher than its
parent.  This is because the regulatory framework provides some
protection for the insurer in the event of adverse intervention
from its parent.  The regulatory framework also includes constant
oversight from the National Bank of the Republic of Kazakhstan.

However, S&P considers that the long-term counterparty credit and
insurer financial strength ratings should be limited to one notch
above the long-term ratings on the parent.

The ratings on KKP continue to reflect S&P's assessments of the
company's vulnerable business risk profile and less than adequate
financial risk profile.

The resolution of the CreditWatch will depend on the commitment
of support from the Kazakh government with regards to the workout
of problem assets at KKB and BTA and any other developments that
might change S&P's assessment of the consolidated bank's capital.
S&P expects to have more clarity on these issues toward the end
of 2014.

S&P could lower its rating on KKP if S&P downgrades KKB.  S&P's
rating on KKP will likely be at most one notch higher than that
on the company's 100% owner KKB.

S&P would also consider a negative rating action if it was to
perceive KKB's actions as having a negative influence on the
company's operating results or infringing the rights of
policyholders.

S&P could remove the ratings from CreditWatch Negative and affirm
them following a similar rating action on the parent, assuming
S&P continues to believe that KKP is an insulated subsidiary from
its parent, according to S&P's criteria.



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


RIOFORTE INVESTMENTS: Collapse Unlikely to Impact Oi Operations
---------------------------------------------------------------
Guillermo Parra-Bernal at Reuters reports that Grupo Oi SA, the
Brazilian telecommunications company struggling with rising debt
and shrinking market share, said the demise of Rioforte
Investments SA, an investment vehicle that owed the company's
Portugal Telecom SGPS SA unit almost EUR1 billion (US$1.28
billion), is unlikely to impact operations.

In a filing with Brazil's securities watchdog CVM, Oi said that
its Oi, Portugal Telecom and TelPart units will not be affected
by the collapse of Rioforte, as the vehicle is known, Reuters
relates.

According to Reuters, Oi pledged to list shares of CorpCo, the
firm that will encompass Oi's and Portugal Telecom's assets into
a single company, by the end of the first quarter.

                         Liquidation

As reported by the Troubled Company Reporter-Europe on Oct. 20,
2014, Bloomberg News related that Rioforte Investments SA and
Espirito Santo International SA, two of the former parent
companies of Banco Espirito Santo SA, the Portuguese lender that
was rescued in August, will be liquidated after a Luxembourg
court denied them protection from their creditors.

                    About Rioforte Investments

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

In July 2014, Rioforte sought protection from creditors in a
Luxembourg court.



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


SCEPTRE CAPITAL 2006-5: S&P Puts CCC+ Rating on CreditWatch Pos.
----------------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch positive
its 'CCC+ (sf)' credit rating on Sceptre Capital B.V.'s series
2006-5 notes.

The CreditWatch positive placement follows S&P's corresponding
CreditWatch placement of its 'CCC+ (sf)' rating on C.L.E.A.R.
PLC's series 73 notes on Oct. 6, 2014.

C.L.E.A.R.'s series 73 notes are the underlying collateral for
Sceptre Capital's series 2006-5 notes.  S&P's criteria link its
rating on Sceptre Capital's series 2006-5 notes to that on
C.L.E.A.R.'s series 73 notes.  Therefore, following S&P's recent
CreditWatch placement on C.L.E.A.R.'s series 73 notes, it has
placed on CreditWatch positive its rating on Sceptre Capital's
series 2006-5 notes.

Sceptre Capital's series 2006-5 is a repack transaction.  Bank of
America Corp. is the arranger.


SCHAEFFLER HOLDING: Moody's Rates New Secured Bonds 'B1'
--------------------------------------------------------
Moody's Investor Services has assigned a B1 instrument rating to
new secured bonds issued in USD and EUR tranches by Schaeffler
Holding Finance B.V. and guaranteed by Schaeffler Verwaltungs
GmbH. The outlook on the rating is stable.

Ratings Rationale

The B1 rating, one notch below the Ba3 corporate family rating
(CFR) of INA Beteiligungsgesellschaft mbH (Schaeffler), reflects
the fact that these bonds are structurally subordinated to bonds
issued by Schaeffler Finance B.V. and term loans issued by INA
Beteiligungsgesellschaft mbH. This subordinated position in the
loss given default waterfall is partially mitigated by the fact
that the bonds are secured, among others, by pledges over bank
accounts, certain receivables and all shares of the issuer and
some subsidiaries of Schaeffer Verwaltungs GmbH, including 70% of
the 11.8% stake that Schaeffler Verwaltung GmbH holds in
Continental AG (Baa3 stable). At current Continental's share
price, the value of the 11.8% stake is around EUR3.4 billion.
Moody's also note that a guarantee fall away event related to
senior debt at INA Beteiligungsgesellschaft mbH level would
somewhat improve the position of the lenders at Holding level, as
lenders to INA Beteiligungsgesellschaft would cease to benefit
from the value of the Continental shares. Therefore, lenders of
Schaeffler Holding would become the sole beneficiaries of
Schaeffler's whole 46% stake in Continental, although only around
8.3% stake of that (i.e. 70% of 11.8%) is directly pledged.

Proceeds from this issuance will be used to refinance the
outstanding indebtedness, primarily the existing term loans
issued by Schaeffler Verwaltungs GmbH. As such, the transaction
will have no meaningful impact on leverage nor on Schaeffler's
Ba3 CFR. The Ba3 CFR remains primarily constrained by very high
combined indebtedness, with reported senior and junior debt
totaling almost EUR10 billion, resulting in a fairly high
leverage (Moody's-adjusted debt/EBITDA of 4.6x for the last-12-
months to June 2014.

What Could Change the Ratings UP/DOWN

Schaeffler's Ba3 CFR is currently strongly positioned. It could
be upgraded should Schaeffler be able to (i) generate sustainably
positive free cash flows and (ii) improve Moody's adjusted
debt/EBITDA to 4.0x (4.6x for the last-12-months to June 2014)
either from internally generated cash flows or from proceeds
received from assets sales or equity increases.

The Ba3 CFR could come under pressure in case of a significant
weakening of Schaeffler's operating performance, as indicated by
Moody's adjusted EBITA margins below 10% (12.9% for the last-12-
months to June 2014), or Moody's adjusted debt/EBITDA above 5.0x,
assuming no material deterioration of economic environment.
Material negative free cash flow and weakening liquidity, for
instance owing to tightening headroom under its financial
covenants, could also lead to a downgrade.

The principal methodology used in this rating was Global
Automotive Supplier 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.



===========
P O L A N D
===========


JASTRZEBSKA SPOLKA: Moody's Assigns '(P)Ba2' Corp. Family Rating
----------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)Ba2
corporate family rating (CFR) to Jastrzebska Spolka Weglowa S.A.,
the parent company of JSW Group. Concurrently, Moody's has
assigned a provisional (P)Ba3 rating with a loss-given default
(LGD) assessment of 5 (70%) to the senior unsecured notes to be
issued by JSW Finance AB (publ), a financing vehicle indirectly
owned by the company. The outlook on all ratings is stable.

Ratings Rationale

The provisional (P)Ba2 CFR for JSW reflects the application of
Moody's rating methodology for government-related issuers (GRIs)
in determining the company's corporate family rating (CFR).
According to this methodology, the CFR is driven by a combination
of (1) JSW's provisional baseline credit assessment (BCA) of
(P)b1; (2) the A2 foreign currency rating of the Polish
government; (3) Moody's assessment of moderate default dependence
between the company and the government; and (4) Moody's
assessment of high probability of strong state support to the
company in the event of financial distress.

JSW's assigned (P)b1 BCA reflects (i) its well established
position as a leading player in the European coking coal industry
and the merchant coke market; (ii) the large and high quality
coal reserves of its five mines, providing long term stability to
its production base; (iii) a vertically integrated business model
covering the value chain from coal mining to coke production,
with the majority of the energy required for its operations
generated in house; and (iv) a stable customer base, due to
geographic proximity and long term off-take agreements with the
most important European steelmakers.

These positive credit considerations are offset by (i) the
current challenging coal market conditions, with coal prices at
historical lows and uncertainty regarding timing and magnitude of
a possible recovery; (ii) the high sensitivity of the Company's
performance to the volatility of coking coal commodity prices and
the cyclicality of the Company's main steel end market; (iii) a
high fixed cost base, mainly attributable to the large size and
rigidity of personnel costs for a unionized workforce; (iv) high
amount of annual maintenance capex requirements owing to the
geological complexity of the ore body in mature and deep
underground mines; and (iv) a high level of customer and
geographic concentration, due to the high exposure to the largest
European steel mills.

Furthermore, the rating takes into account that the recent
increase in debt to partially fund the acquisition of the KWK
Knurow-Szczyglowice ('K-S') mine is immediately exerting negative
pressure on a financial profile already weakened by bottom-of-
cycle market conditions. However, the rating also recognizes the
growth prospects offered by the acquisition, adding an already
established mine with large high quality thermal and coking coal
resources. This offers potential for significant synergies, given
the asset's location in close proximity to another geologically
similar mine (Budryk) operated by JSW, and the possibility to
improve the product mix towards premium hard coking coal, subject
to the effective execution of a multi-year capex plan.

Liquidity is adequate, however this is based on the assumption
that the company successfully completes the launch of the senior
unsecured notes in the amount contemplated, which would allow to
build an additional cash buffer of approximately PLN759 million.
This buffer, together with already available cash and committed
and partially undrawn bank facilities, should be sufficient to
cover the main scheduled cash outflows over the next 18 months,
mainly related to capex. As of June 2014, the company reported
committed capex of PLN1,399 million to be incurred over the
following 12 months. Albeit Moody's understands that management
can defer a portion of expansionary capex, there is still a large
amount of maintenance capex spend which cannot be reduced or
delayed, as this could jeopardize the company's compliance with
health and safety regulations for deep underground mines.
However, internally generated operating cash flows projected over
the business plan horizon should be sufficient to cover the
majority of annual maintenance capex.

The stable outlook reflects Moody's expectation that the
declining trend of JSW's financial performance since 2011 has
reached its bottom in 2014 and a gradual recovery is anticipated
over the next 12-18 months, which is consistent with Moody's view
of a moderate recovery in coal prices and of a stable outlook for
the main end-user market of the company, the European steel
industry. The stable outlook further assumes a smooth integration
of the K-S mine into JSW's operations, no additional material
acquisitions over the next 24 months and a prudent financial
policy focused on proactive liquidity management to ensure the
Company maintains an adequate liquidity profile.

While there is limited rating upside potential at the moment,
Moody's would consider upgrading the rating if the company were
able to meet or exceed its projections and materially improve its
key credit metrics, with a total debt/EBITDA ratio, as adjusted
by Moody's, below 2.5x and a (CFO-Dividends)/Debt ratio exceeding
25% on a sustained basis. Furthermore, an upgrade of the
sovereign rating of Poland would exert positive rating pressure.

Moody's would consider downgrading the rating if the company were
to perform materially below expectations, with this resulting in
a substantial deterioration of the Debt/EBITDA ratio, as adjusted
by Moody's, compared to the level of approximately 4.3x Moody's
project for 2014YE pro-forma for the issuance of the new notes.
Furthermore, a failure to extend or renew one of the two water
permits at the K-S mine, before its expiration in 2015, would
also exert negative rating pressure, if it results into a
material reduction of output from the mine. Any material
deterioration in the company's liquidity position or reduction in
the headroom under its financial covenants could also contribute
towards a possible rating downgrade, as well as any re-assessment
by Moody's of its assumption of government support, which Moody's
currently consider as strong.

Structural considerations

The (P)Ba3 rating assigned to the senior unsecured notes being
issued by JSW Finance AB (publ) is one notch below the CFR, to
reflect the lower ranking status of the new notes in the capital
structure compared to the senior secured debt -- chiefly
represented by revolving credit facilities and investment loans
mainly available to subsidiaries -- which Moody's assumes are or
will be likely used to a large extent over the next 12 to 18
months, considering the projected requirements in connection with
the execution of the company's substantial capex plan. To assign
the provisional rating to the new notes, Moody's has assumed a
50% family recovery rate as is customary for capital structures
including both senior bank facilities and notes.

The provisional ratings assigned to the CFR, BCA and senior
unsecured notes reflect only Moody's preliminary credit opinion
regarding the capital structure and liquidity position of the
Company, as well as the key terms of the notes, pending
confirmation of final terms of the transaction. Upon completion
of the issuance of the new notes and conclusive review of the
final documentation, Moody's will assign definitive ratings. A
definitive rating may differ from a provisional rating.

Principal Methodology

The principal methodology used in these ratings was Global Mining
Industry published in August 2014. Other methodologies used
include Loss Given Default for Speculative-Grade Non-Financial
Companies in the U.S., Canada and EMEA published in June 2009 and
the Government-Related Issuers: Methodology Update published in
July 2010.

Jastrzebska Spolka Weglowa S.A., headquartered in Poland and
listed since July 2011 on the Warsaw Stock Exchange, is the
largest producer of high quality coking coal and the largest
merchant coke producer in the European Union in terms of
production volumes. In 2013, the Company produced 9.8 million
tonnes (mt) of coking coal, 3.8mt of steam coal, and 3.9mt of
coke. The production base is supported by 5 coal mines (including
the K-S mine acquired in July 2014) located in the Polish Upper
Silesian basin, which have in aggregate documented coal reserves
of 995mt. The company, 55% owned by the Polish Government,
reported PLN7.63 billion (US$2.4 billion equivalent) of revenues
in 2013.


JASTRZEBSKA SPOLKA: Fitch Assigns 'B+(EXP)' Long-Term IDR
---------------------------------------------------------
Fitch Ratings has assigned Polish-based Jastrzebska Spolka
Weglowa S.A. (JSW) an expected Long-term Issuer Default Rating
(IDR) and an expected senior unsecured rating of 'B+ (EXP)'. The
Outlook on the Long-term IDR is Stable. The agency has also
assigned the group's debut senior notes to be issued by JSW
Finance AB a 'B+(EXP)'/'RR4' expected rating. Fitch has also
assigned JSW an expected National Long-term rating of
'BBB-(EXP, pol)'.

JSW's ratings reflect its position as a significant regional coal
and coke producer. The company is a higher cost producer in
global terms due to its operation of deep, underground mines as
well as having higher staffing levels and employee benefits. JSW
has historically operated with modest debt levels but the debt-
funded acquisition of the Knurow-Szczyglowice (KS) mine will move
it from net cash to net debt position.

JSW's rating incorporates one-notch of state support reflecting
the Polish State Treasury's control via its 55% shareholding, and
the strategic importance of the mining sector to the Polish
economy. Notwithstanding EU restrictions on the provision of
state aid to companies, we believe that some form of support
remains likely to be provided should JSW be in a state of
financial stress.

The proposed bonds are rated at the level of the IDR due to
guarantees from JSW SA and several other group companies (JSW
KOKS, WZK Victoria and Polski Koks). Together these companies
represented over 90% of group revenues, EBITDA and assets in
2013. Proceeds from the notes will be used to repay the KS
acquisition loan as well as increase the company's cash reserves.
The assignment of a final ratings is conditional on the issue of
the notes conforming to information already reviewed.

Key Rating Drivers

Regional Player in an International Market
JSW is a leading player in the European coal market and its
customers are mainly concentrated in Poland (47% of 2013
revenues) and other major European markets (41% of 2013
revenues). This creates an advantage for JSW given the
geographical proximity of its customers, but also implies a
strong dependency on the business cycle of the European steel
market and in particular on the performance of a relatively small
number of steel mills, most notably those owned by ArcelorMittal,
which accounted for more than a quarter of JSW's 2013
consolidated revenues. At the same time, the coal prices received
by JSW are influenced by global market trends and the global
coking coal cost curve, which includes companies with
significantly lower extraction costs.

Higher Cost Profile

JSW is a higher cost producer, positioned in the third quartile
of the global cost curve. This reflects the deep, underground
nature of its mines (higher costs for ventilation and logistics)
as well as legacy high staffing levels and employee benefit and
pension costs (eg. coal allowance, 14th annual salary). Fixed
costs related to JSW's highly unionized workforce represented 52%
of total costs by nature (excluding depreciation & amortization)
in 2013. JSW is adopting or investigating various measures to
reduce employee costs. However, results are likely to be slow
and/or may be subject to union and worker opposition.

Increasing Leverage Post-Acquisition

The debt-funded acquisition of the KS mine will cause JSW's
balance sheet to move from net cash to net debt at a time when
coal prices, and as a result operational performance, are at
cyclically weak levels. We expect funds from operations (FFO)
gross leverage to peak above 6.0x in 2014. A progressive rebound
in coal prices in coming years is expected to lead the FFO gross
leverage trend to a more comfortable level of 2.0x by 2016.
However, continued high capex will lead to a gradual but
significant reduction in cash balances, increasing the likelihood
that JSW may need to raise additional debt in 2016-2017 if coal
prices fail to rebound as expected.

Potential State Support

JSW's rating incorporates one notch of state support on account
of the strategic importance of the mining sector to the Polish
economy. The Polish State Treasury controls JSW with its
approximate 55% shareholding and has indirect control via
appointment of the Management Board. Notwithstanding EU
restrictions on the provision of state aid to companies, we
believe that some form of support remains likely to be provided
should JSW be in a state of financial stress. Current forms of
support provided to fellow Polish miner -- Kompania Weglowa --
give an indication of the measures that would potentially be
available to JSW.

Average Customer Diversification

Despite the recent improvement, JSW continues to have relatively
concentrated revenues, with its top-five customers accounting for
more than 50% of the company's total revenues in 2013. We do not
expect this to decrease significantly in the short term, given
JSW's focus on supplying customers that are in close geographical
proximity to its mines.

Towards Energy Self-Sufficiency

Both coal extraction and the coking process release a number of
by-products that JSW can use for power generation or transform
into saleable chemical products. JSW is currently undertaking
projects for the in-house production of electricity and heat that
are planned to lead to energy self-sufficiency by 2016.

Rating Sensitivities

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

-- Deleveraging from free cash flow to FFO adjusted gross
    leverage consistently below 2x.
-- FFO fixed charge coverage consistently above 6x.
-- Successful withdrawal or reduction of employee benefit costs
    with consequent improvement in the company's cost profile and
    profit generation.

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

-- Constrained liquidity together with FFO fixed charge coverage
    consistently below 5x by 2016.
-- FFO adjusted gross leverage consistently above 2.5x by 2016.
-- New debt-funded acquisitions.



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


BANCO ESPIRITO: Novo Banco Nears Rescue Deal for Angolan Unit
-------------------------------------------------------------
Segrio Goncalves and Andrei Khalip at Reuters report that
Portugal's Novo Banco -- the successor to bailed-out Banco
Espirito Santo (BES) -- has moved closer to a rescue deal for its
Angolan unit, with the African nation's central bank agreeing a
recapitalization plan for the local business.

According to Reuters, the National Bank of Angola said on Oct. 20
that Novo Banco will retain a 9.9% stake in BES Angola (BESA)
under a deal which will see some of its loans to the unit
converted into equity.

The central bank said the shareholders, as well as investors
approved by the Angolan authorities, will also buy around US$650
million of new shares in BESA Angola to bolster its capital,
Reuters relates.

BES had a 56% stake in BESA before the Portuguese lender's rescue
in early August, which also saw BESA taken into administration by
the Angolan central bank, Reuters discloses.

Portugal had to rescue BES to the tune of EUR4.9 billion (US$6.3
billion), carving out a good bank -- Novo Banco -- and a bad bank
that inherited the toxic debts of the collapsed business empire
of the bank's founding Espirito Santo family, Reuters notes.

Around EUR3 billion of the rescue funds were set aside to cover
the lender's exposure to Angola, where BESA had piled up a risky
credit portfolio laden with bad loans, Reuters says.

The measures proposed by the National Bank of Angola suggest that
around a quarter of the risky loans are recoverable, which
represents a potential upside for Novo Banco as it has written
down the full EUR3 billion as losses, Reuters relays.

The central bank, as cited by Reuters, said it would convert some
AOA41.6 billion (US$422 million) of BES loans to BESA into a
dollar loan repayable to Novo Banco in 18 months and the same
amount into a loan repayable over 10 years.

Some EUR3.6 billion -- mostly BES's interbank loans to BESA --
would be transformed into BESA capital for the bank to be able to
meet its commitments, Reuters states.

                   About Banco Espirito Santo

Banco Espirito Santo is a private Portuguese bank based in
Lisbon, Portugal.  It is 20% owned by Espirito Santo Financial
Group.

In August 2014, Banco Espirito Santo had been 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.

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

Also 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.

                        *     *     *

On Aug. 15, 2014, The Troubled Company Reporter reported that
Standard & Poor's Ratings Services affirmed and then suspended
its 'C' ratings on two short-term certificate of deposit programs
and one commercial paper program originally issued by Portugal-
based Banco Espirito Santo S.A. (BES).  As S&P publically
communicated on Aug. 8, 2014, most of BES' senior unsecured debt
has been transferred to newly formed Novo Banco S.A. (not rated)
as part of BES' resolution proceedings.  S&P currently does not
have satisfactory information to perform its ratings analysis on
these debt instruments, and S&P is therefore suspending its
ratings on them.

The TCR, on Aug. 14, 2014, also reported that Moody's Investors
Service has assigned debt, deposit ratings and a standalone bank
financial strength rating (BFSR) to the newly established
Portuguese entity Novo Banco, S.A., in response to the transfer
of the majority of assets, liabilities and off-balance sheet
items from Banco Espirito Santo, S.A. (BES), together with the
banking activities of this bank. The following ratings have been
assigned: (1) long- and short-term deposit ratings of B2/Not-
Prime; (2) a standalone BFSR of E (equivalent to a ca baseline
credit assessment [BCA]).



===========
R U S S I A
===========


ALFA-BANK: Moody's Changes Outlook on Ba1 Sr. Debt Rating to Neg.
-----------------------------------------------------------------
Moody's Investors Service has taken rating actions on seven
Russian financial institutions -- namely Sberbank, Bank VTB JSC,
Gazprombank, Russian Agricultural Bank, Agency for Housing
Mortgage Lending OJSC, Vnesheconombank and Alfa-Bank. These
actions follow the weakening of Russia's credit profile, as
reflected by Moody's downgrade of Russia's government debt rating
to Baa2 from Baa1 on October 17, 2014.

Specifically, Moody's downgraded the supported senior unsecured,
subordinated debt and deposit and issuer ratings of the
government-owned Russian financial institutions. The outlook on
the long-term ratings of these institutions is negative. The
outlook on privately-owned Alfa-Bank's Ba1 supported senior debt
and deposit ratings and its guaranteed special purpose vehicles
were changed to negative from stable.

These ratings incorporate Moody's assessment of the systemic
support uplift that is derived from Russia's government debt
rating.

At the same time, Moody's repositioned Sberbank's baseline credit
assessment (BCA) to ba1 from baa3 within the same standalone bank
financial strength rating (BFSR) category at D+, with a negative
outlook.

The standalone ratings of the other institutions were not
affected by the rating action.

Ratings Rationale

The weakening of Russia's credit profile, as reflected by the
downgrade of Russia's government debt rating with a negative
outlook has prompted a rating action on the government-owned
Russian financial institutions' supported ratings, which benefit
from a multi-notch uplift due to systemic support assumptions.
While Moody's considers that the Russian government will remain
willing to assist these banks in the event of need, its capacity
has declined, as expressed by the downgrade of the government
debt rating to Baa2 from Baa1.

Alfa-Bank's long-term ratings, which benefits from one notch of
uplift due to systemic support, were affirmed at Ba1. The outlook
on the bank's rating was changed to negative, in line with the
outlook on the sovereign rating. The negative outlook on Alfa-
Bank's rating reflects the fact that any further downgrade of the
sovereign rating could affect Moody's assessment of ratings
uplift resulting from support assumptions.

Following the downgrade, the supported ratings of these seven
financial institutions will continue to benefit from the systemic
support uplift ranging from one to five notches from their
standalone BCAs.

SBERBANK'S BCA

Sberbank's standalone BCA was repositioned to ba1 from baa3
within the same standalone BFSR category at D+, with a negative
outlook. This adjustment reflects Moody's view that the bank's
currently robust credit profile will be adversely affected by the
country's challenging economic conditions expected in the coming
years.

The revised standalone BCA of ba1, which remains at the top end
of the BCA range for Russian banks, better captures these
challenges and potential volatility in Sberbank's operating
environment as well as the constrained growth and profitability
potential. Moody's has already observed declining trends in
Sberbank's asset quality and post-provision profitability in the
first half of 2014.

At the same time, Moody's notes Sberbank's robust capitalization
with the Tier 1 ratio of 10.5% (as reported by the bank) as at H1
2014, and currently high levels of return on equity. In addition,
the bank's strong pricing power, with net interest margins
historically above 5%, reflects its established franchise
position as the largest financial institution in Russia.

What Could Move the Ratings Up/Down

Moody's considers that upward pressure on the supported ratings
of all seven Russian financial institutions is unlikely in the
near term because the key drivers of the actions relate to the
weakening of the sovereign credit profile as reflected in the
downgrade on Russia's government debt rating with a negative
outlook.

As expressed by the negative outlooks on the long-term ratings of
all seven Russian financial institutions, their ratings could be
downgraded further in the event of any further downgrade of the
government debt rating. Downward adjustments could also be
triggered by an erosion of the banks' stand-alone credit profile.
Conversely, the outlooks on the ratings of these entities could
be changed to stable in the event of a corresponding change in
outlook on the current Baa2 government bond rating.

List of Affected Ratings

The following ratings have been downgraded and placed on negative
outlook:

-- Sberbank's LC/FC Senior Unsecured debt ratings and deposit
    ratings to Baa2; Backed Senior Unsecured to Baa2 and Backed
    Senior Unsecured MTN to (P)Baa2; Backed subordinated rating
    and Backed Subordinated MTN to Ba1/(P)Ba1;

-- Bank VTB, JSC's LC/FC Senior Unsecured debt ratings and
    deposit ratings to Baa3; Senior Unsecured MTN to (P)Baa3, LC
    Senior Unsecured bank credit facility Baa3, FC subordinated
    rating to Ba2; Subordinated MTN to (P)Ba2, Backed Senior
    Unsecured to Baa3, Backed Senior Unsecured MTN to (P)Baa3;

-- Bank VTB North-West's FC backed Subordinate rating to Ba2
    (debt assumed by Bank VTB, JSC);

-- VTB Capital S.A.'s FC Senior unsecured and Senior secured
    rating to Baa3;

-- Gazprombank's LC/FC Senior Unsecured debt ratings and deposit
    ratings to Ba1; FC Senior Unsecured MTN to (P)Ba1, Backed
    Senior Unsecured to Ba1; FC subordinated rating to B1; LC/FC
    Subordinated MTN (P)B1;

-- Russian Agricultural Bank's LC/FC Senior Unsecured debt
    ratings and deposit ratings to Ba1; FC Senior Unsecured MTN
    to (P)Ba1, FC subordinated rating to B1 and FC subordinated
    MTN rating to (P)B1;

-- Agency for Housing Mortgage Lending OJSC's LC/FC issuer
    ratings and Senior Unsecured debt ratings to Baa2, Backed
    Senior Unsecured to Baa2;

-- Vnesheconombank's LC/FC issuer ratings to Baa2.

The following ratings have been affirmed and placed on negative
outlook:

-- Sberbank's BFSR of D+ (repositioned to a BCA of ba1)

-- Alfa-bank's LC/FC Senior Unsecured debt ratings and deposit
    ratings at Ba1; BACKED Senior Unsecured at Ba1;

-- Alfa MTN Issuance Limited's Backed Senior Unsecured and
    Backed Senior Unsecured MTN at Ba1/(P)Ba1;

-- Alfa MTN Markets Limited's Backed Senior Unsecured MTN at
    (P)Ba1;

-- Alfa MTN Projects Limited's Backed Senior Unsecured MTN at
    (P)Ba1;

-- Alfa MTN Invest Ltd's Backed Senior Unsecured MTN at (P)Ba1

The following short-term ratings have been downgraded:

-- Bank VTB, JSC's LC/FC short-term deposit and short-term
    program ratings to Prime-3 and (P)Prime-3 respectively;

-- Gazprombank's FC short-term deposit ratings to Not Prime;

-- Russian Agricultural Bank's LC/FC short-term deposit ratings
    to Not Prime.

Principal Methodologies

The principal methodology used in rating Agency for Housing
Mortgage Lending OJSC and Vnesheconombank was Government-Related
Issuers: Methodology Update published in July 2010.

The principal methodology used in rating Sberbank, Bank VTB, JSC,
VTB Capital S.A., Gazprombank, Russian Agricultural Bank, Alfa-
Bank, Alfa MTN Issuance Limited, Alfa MTN Markets Limited, Alfa
MTN Projects Limited and Alfa MTN Invest Ltd was Global Banks
published in July 2014.



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


SANTANDER HIPOTECARIO 9: Moody's Lifts Rating on EUR162.5MM Notes
-----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of five
classes, downgraded the rating of one class, confirmed the
ratings of three classes and affirmed the ratings of further
three classes of notes in four Spanish residential mortgage-
backed securities (RMBS): FTA Santander Hipotecario 2, FTA
Santander Hipotecario 3, FTA Santander Hipotecario 7 and FTA
Santander Hipotecario 9.

The rating action concludes the review of nine classes of 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
Class C notes in FTA Santander Hipotecario 2 reflects the
collateral performance deterioration and the increase in the
unpaid Principal Deficiency Ledger (PDL) over the last payment
dates.

For FTA Santander Hipotecario 3, 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
upgrades and confirmations 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 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 servicer commingling
exposure to Banco Santander S.A. (Spain) (Baa1/P-2) for the four
deals and the account bank exposure to Banco Santander S.A.
(Spain) for FTA Santander Hipotecario 9.

Moody's also assessed the exposure to Banco Santander S.A.
(Spain) acting as the swap counterparty in FTA Santander
Hipotecario 2, FTA Santander Hipotecario 3 and FTA Santander
Hipotecario 7 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: FTA SANTANDER HIPOTECARIO 2

EUR1801.5 million A Notes, Upgraded to A3 (sf); previously on
Mar 17, 2014 Baa2 (sf) Placed Under Review for Possible Upgrade

EUR51.8 million B Notes, Upgraded to Ba1 (sf); previously on Mar
17, 2014 Ba2 (sf) Placed Under Review for Possible Upgrade

EUR32.3 million C Notes, Downgraded to B2 (sf); previously on
Mar 17, 2014 B1 (sf) Placed Under Review for Possible Upgrade

EUR49.8 million D Notes, Affirmed Caa2 (sf); previously on Apr
16, 2013 Downgraded to Caa2 (sf)

Issuer: FTA SANTANDER HIPOTECARIO 3

EUR613 million A1 Notes, Confirmed at B2 (sf); previously on Mar
17, 2014 B2 (sf) Placed Under Review for Possible Upgrade

EUR1540 million A2 Notes, Confirmed at B2 (sf); previously on
Mar 17, 2014 B2 (sf) Placed Under Review for Possible Upgrade

EUR420 million A3 Notes, Confirmed at B2 (sf); previously on Mar
17, 2014 B2 (sf) Placed Under Review for Possible Upgrade

Issuer: FTA SANTANDER HIPOTECARIO 7

EUR1440 million A Notes, Affirmed A1 (sf); previously on Mar 17,
2014 Upgraded to A1 (sf)

EUR360 million B Notes, Upgraded to A2 (sf); previously on Mar
17, 2014 Baa3 (sf) Placed Under Review for Possible Upgrade

Issuer: FTA SANTANDER HIPOTECARIO 9

EUR487.5 million A Notes, Upgraded to A1 (sf); previously on Mar
17, 2014 A3 (sf) Placed Under Review for Possible Upgrade

EUR162.5 million B Notes, Upgraded to Ba2 (sf); previously on
Mar 17, 2014 Ba3 (sf) Placed Under Review for Possible Upgrade

EUR117 million C Notes, Affirmed Caa3 (sf); previously on Jun
25, 2013 Definitive Rating Assigned Caa3 (sf)


TDA 22 MIXTO: Moody's Raises Rating on EUR6MM C2 Notes to 'Ba3'
---------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of ten notes,
confirmed the ratings of two notes and affirmed the rating of
nine notes in four Spanish residential mortgage-backed securities
(RMBS) transactions: TDA 15 Mixto, TDA 18 Mixto, TDA 20 Mixto and
TDA 22 Mixto.

The rating action concludes the review of eleven 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 increase 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 for TDA 15 Mixto sub-pool 1, TDA 20 Mixto Sub-pools 1
and 2. 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 TDA 15 Mixto sub-pool 2,
TDA 18 Mixto sub-pools 1& 2 and TDA 22 Mixto Sub-pools 1 & 2 to
date. The portfolios show deteriorating growth rate in defaults.
As a result, Moody's increased its Expected Loss of the original
pool balance to 0.73% in TDA 15 Mixto sub-pool 2, 0.85% in TDA 18
Mixto sub-pool 1, 0.95% in TDA 18 Mixto sub-pool 2, 2.70% in TDA
22 Mixto Sub-pools 1 and 3.0% in TDA 22 Mixto Sub-pools 2.


Moody's has also revised MILAN CE assumption to 14.2% in TDA 22
Mixto sub-pool A up 14.2% from 12.5%. Reflecting the change in
performance.

-- 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.

These are multi-servicer transactions. The rating action takes
into account commingling exposure to all servicers.

Moody's also assessed the exposure to JPMorgan Chase Bank, NA
(Aa3/P-1) acting as swap counterparty in TDA 20 Mixto and TDA 22
Mixto 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 15 MIXTO, FTA

EUR228.9M A1 Notes, Affirmed A1 (sf); previously on Mar 17, 2014
Upgraded to A1 (sf)

EUR200.8M A2 Notes, Affirmed A1 (sf); previously on Mar 17, 2014
Upgraded to A1 (sf)

EUR9.5M B1 Notes, Upgraded to Baa3 (sf); previously on Mar 17,
2014 Ba1 (sf) Placed Under Review for Possible Upgrade

EUR11.7M B2 Notes, Upgraded to Baa2 (sf); previously on Mar 17,
2014 Ba1 (sf) Placed Under Review for Possible Upgrade

Issuer: TDA 18 MIXTO, FTA

EUR301.7M A1 Notes, Affirmed A1 (sf); previously on Mar 17, 2014
Upgraded to A1 (sf)

EUR95.6M A2 Notes, Affirmed A1 (sf); previously on Mar 17, 2014
Upgraded to A1 (sf)

EUR11.3M B1 Notes, Upgraded to Baa3 (sf); previously on Mar 17,
2014 Ba1 (sf) Placed Under Review for Possible Upgrade

EUR12.4M B2 Notes, Upgraded to Baa2 (sf); previously on Mar 17,
2014 Ba1 (sf) Placed Under Review for Possible Upgrade

Issuer: TDA 20 MIXTO, FTA

EUR297.1M A1 Notes, Upgraded to A1 (sf); previously on Mar 17,
2014 Baa1 (sf) Placed Under Review for Possible Upgrade

EUR105.6M A2 Notes, Affirmed A1 (sf); previously on Mar 17, 2014
Upgraded to A1 (sf)

EUR7.9M B1 Notes, Confirmed at Ba1 (sf); previously on Mar 17,
2014 Ba1 (sf) Placed Under Review for Possible Upgrade

EUR10.4M B2 Notes, Upgraded to Baa3 (sf); previously on Mar 17,
2014 Ba1 (sf) Placed Under Review for Possible Upgrade

Issuer: TDA 22 MIXTO, FTA

EUR57.2M A1b Notes, Upgraded to A3 (sf); previously on Mar 17,
2014 Baa2 (sf) Placed Under Review for Possible Upgrade

EUR168.9M A2a Notes, Affirmed A1 (sf); previously on Mar 17,
2014 Upgraded to A1 (sf)

EUR48.8M A2b Notes, Affirmed A1 (sf); previously on Mar 17, 2014
Upgraded to A1 (sf)

EUR4.6M B1 Notes, Confirmed at B1 (sf); previously on Mar 17,
2014 B1 (sf) Placed Under Review for Possible Upgrade

EUR14.6M B2 Notes, Upgraded to Baa2 (sf); previously on Mar 17,
2014 Ba1 (sf) Placed Under Review for Possible Upgrade

EUR3.7M C1 Notes, Affirmed Caa2 (sf); previously on May 24, 2013
Downgraded to Caa2 (sf)

EUR6M C2 Notes, Upgraded to Ba3 (sf); previously on Mar 17, 2014
B2 (sf) Placed Under Review for Possible Upgrade

EUR2.7M D1 Notes, Affirmed Caa3 (sf); previously on May 24, 2013
Downgraded to Caa3 (sf)

EUR5.7M D2 Notes, Upgraded to B3 (sf); previously on May 24,
2013 Confirmed at Caa1 (sf)



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


CATERHAM SPORTS: In Administration, Jobs at Risk
------------------------------------------------
Alan Tovey at telegraph.co.uk reports that the Formula 1
manufacturer which designs and builds the cars used by the
Caterham team has gone into administration, casting doubts over
the team's future and potentially hundreds of jobs.

Accountants Smith & Williamson have been appointed as
administrators to Caterham Sports Limited (CSL), which is based
Leafield, Oxfordshire, in Britain's "motorsport valley."

The report notes that CSL provides services to 1 Malaysia Racing
Team (1MRT), the Malaysian company which operates the Caterham F1
Team in the Formula 1 World Championship.

Administrators said they have been engaged in "positive" talks
with the racing team to see if CSL can continue to supply it but
said that if an agreement cannot be reached they will begin
discussions about selling the company's assets, the report
relates.

Administrator Finbarr O'Connell said although around 200 staff
working in CSL's factory had their contracts transferred over to
1MRT in the past few weeks, he said their jobs could be at risk
if an arrangement is not struck soon, the report relays.

"As administrator I control the machines they are working on, the
computers, the factory, the intellectual property.  If I don't do
a deal with 1MRT then they will have nothing to work on and their
jobs could be at risk," the report quoted Mr. O'Connell as saying

The report notes that Mr. O'Connell was appointed as
administrator to CSL by the company's bank.   Constantin Cojocar,
CSL's sole director, had applied to put the company into
insolvency through a court order, the report relates.

The report discloses that Mr. Cojocar said in legal papers he
expected to receive GBP2 million a week from backers which would
be used to pay creditors but when this money did not arrive he
had no choice but to request the company be put into
administration.

The administration places further pressure on the Caterham racing
team, which is currently standing in last place with zero points
this season, the report relays, the report notes.

Earlier this month, bailiffs turned up at the Leafield factory,
driving the team to put out a statement ahead of the race at
Suzuka on October 5, the report says.  In it, the racing team
condemned "unfounded and unsubstantiated rumours concerning
actions against 1MRT, the entrant and owner of Caterham F1," the
report discloses.

"An action was threatened against a supplier company to 1MRT.
This company is not owned by 1MRT and it has no influence over
the entry of Caterham F1 or the entrant," it said, the report
notes.  "Contrary to uncontrolled rumours, all operations are
currently in place at Leafield," it added.

The report adds that a spokesman for the racing team said: "CSL
going into administration does not affect the Formula 1 team in
any way, as we are not part of it."


LLANDEGLA HOTEL: Closes Amid Plans for Private Home
---------------------------------------------------
News North Wales reports that an historic hotel has closed amid
plans for it to become a private home again.

Bodidris Hall in Llandegla dates back to the 16th century when
the Lloyd family became wealthy and prominent and has enjoyed an
interesting history ever since, according to News North Wales.

The report notes that the listed building passed to a number of
prevalent families, including the Vaughans and then the Mostyns
and it was once a large enterprise growing cereals and rearing
livestock.

The Williams family, of Bodelwyddan Castle, incorporated the land
into their large estate in the mid-1800s and used it primarily as
a hunting lodge.

By the 1980s, the hall had become a hotel and restaurant although
planning application agents Adrian Jones Associates claim "no
record of planning permission for a change of use from a house to
a hotel has been found," the report discloses.

According to their report, the hall, which is located in the
Clwydian Range and Dee Valley area of outstanding natural beauty,
is now in a "poor condition" and emergency repair work to the
roof, trusses and floor beams is being undertaken, the report
relays.

News North Wales says that at various times in its colourful
history, the property has been described as being in a "shocking
state" and "ruinous condition" and it is believed the site will
cost less to bring it up to a habitable state than would be
needed for it to continue as a hotel.

A number of alterations have also been made to the house without
evidence of listing building consent and have "detracted from the
historic integrity of the property," the report discloses.

Stephanie Booth was the most well-known of the building's
hoteliers but her Llangollen Hotels Limited empire crumbled when
parent company Global Investments Group went into administration
in 2011, News North Wales notes.

The report relays that new owners attempted to make the hotel a
viable business but the report revealed the business has been
running at a loss ever since.

Now alterations and partial demolition are planned and the
application report, submitted to Denbighshire County Council,
claims that "the continued use of the hall as a hotel is not
viable," the report notes.

The report relates that the applicants also plan to turn the
stables into holiday accommodation.

"The proposed alterations will reinstate much of the historic
character of the building by removing inappropriate recent
alterations.  The historic fabric of the building will be
refurbished and repaired to ensure the future of this heritage
asset," application report said, the report notes.



OUTDOOR MEGASTORE: Shuts Operations in September, 20 Jobs Lost
--------------------------------------------------------------
Liverpool Echo reports that Outdoor Megastore went into
administration and shut the operation in September with the loss
of around 20 jobs.

Administrator Darren Brookes of Hale-based Milner Boardman
Partnership announced he had sold the assets of Outdoor Megastore
to an unnamed buyer, according to Liverpool Echo.

Now, ECHO Business can reveal that Sheffield-based GO Outdoors
was the purchaser and will open its new operation, taking its UK
portfolio to around 50 stores, in a deal brokered by Waterloo-
based Ascot Property Group, which owns the Rimrose Road site.

GO Outdoors is aiming to open the new store next spring.

"As part of a major rebrand, GO Outdoors will create a total of
55 jobs in the area.  The opening has come as a result of
customer demand to open a GO Outdoors store in the area," the
report quoted a spokesperson for the group as saying.

The report relays that Ascot Property said GO Outdoors will
completely refurbish the 30,000 sq ft of retail and warehousing
space and provide a brand new car park on the neighboring land,
which was formerly a car and van sales pitch.

The landlord said the site had attracted interest from JD Sports
and Yeomans Outdoors, the report relates.

However, it said its team acted quickly to agree terms with GO
Outdoors, which will see refurbishment work begin immediately,
the report notes.

"GO Outdoors is a hugely successful company in a growing industry
and we are delighted to have concluded this deal so quickly
thanks also to our legal team at MSB Solicitors and all those
involved. The site is excellently located and with Liverpool
having a growing interest in outdoor sports and activities I am
sure this will be a welcome addition to the city," the report
quoted Stuart Howard, property manager for Ascot, as saying.

The report notes that Mr. Howard added: "Ascot continues to grow
successfully, working with top companies across the UK, and has a
number of high-end retailers and leisure operators lined up to
occupy places in upcoming developments across Liverpool and other
major UK cities."

Outdoor Megastore was set up 21 years ago and was a GBP3 million
turnover company.  It however suffered from increased competition
as major retailing rivals moved into the market, the report adds.


PRITCHARD STOCKBROKERS: Failed to Protect Client Funds
------------------------------------------------------
Darren Slade at Bournemouth Echo reports that Bournemouth-based
Pritchard Stockbrokers Ltd has been publicly censured and would
have been fined GBP4.9 million if it were still in business.

However, Pritchard Stockbrokers has gone into administration, and
the Financial Conduct Authority (FCA) has decided to waive the
fine on the company so that any assets could be made available to
creditors, according to Bournemouth Echo.

The FCA found that the wealth management company "recklessly"
failed to protect its clients' funds and lost around GBP3 million
of client money, the report notes.  The FCA said Pritchard
routinely failed to pay enough money into its client bank account
to cover shortfalls in client money.  The company's failures
resulted in the Financial Services Compensation Scheme having to
compensate clients.

Pritchard Stockbrokers was incorporated in 1986 and was
authorized to carry on designated investment business in 2001.
It had a head office in Bournemouth and 10 ancillary offices. It
had more than 11,000 customers during the period in question and
was responsible for managing more than GBP26 million for
customers.  But it ran into financial problems in 2009 and used
client money to meet business expenses, Bournemouth Echo notes.

The amount by which it failed to meet daily shortfalls in client
accounts ranged from GBP198,000 to GBP2.6 million, says
Bournemouth Echo.

The report relates that Managing Director David Gillespie and
finance director David Welsby claimed the company had an offshore
facility offering GBP2 million to support its client money
position.

But no "credible evidence" had been produced for the existence of
the offshore facility and such arrangements did not comply with
the rules, the FCA said, the report relays.

The report discloses that the FCA seized Pritchard's assets in
February 2012 and the company entered special administration the
following month.

Issuing a public censure, the authority said: "Pritchard
recklessly relied upon the existence of an undocumented and
opaque offshore facility in attempting to correct a deficit which
it had wrongfully brought about in its client money position.

"Its failure adequately to protect its client money throughout
the relevant period contributed to a loss of approximately GBP3
million of client money by the time Pritchard entered into
special administration," the authority added.



===============
X X X X X X X X
===============


* Fitch Launches Additional Tier 1 Tracker Tool
-----------------------------------------------
Fitch Ratings has launched its AT1 Tracker Tool, an interactive
product tracking AT1 and T2 CoCo debt issued by global financial
institutions. Fitch has also published a complementary 'Banks AT1
Tracker' dashboard summarizing key themes relevant to the asset
class.

The tool allows users to assess the absolute and relative coupon
risk of AT1 instruments and the write-down / conversion risk of
AT1 and T2 CoCo instruments issued by a broad range of banks
globally. The tool also provides a comprehensive overview of key
features of outstanding instruments and includes an issue
comparison function, which allows the user to compare coupon
omission and write-down buffers of up to five different issues.
The interactive component allows users to set various parameters
arbitrarily based on the user's own assumptions and to track
against other instruments. Finally, a 'trigger distance average'
calculation allows users to track risk trends for the whole AT1
asset class.

Fitch currently rates approximately USD80bn of AT1s and T2 CoCo,
which represent an estimated 85% of all outstanding AT1
instruments. Fitch's criteria for rating these bonds have not
materially changed in recent years, resulting in broadly stable
ratings. Approximately 56% of bonds and 79% of AT1s are rated in
the 'BB' category, reflecting Fitch's general policy to notch
Basel III-compliant Tier 1 instruments down at least five times
from the issuer's Viability Rating. For the vast majority of
banks, AT1s are likely to be non-investment grade.

David Weinfurter, Global Head of Financial Institutions, said:
"AT1s are an instrument class of great interest to market
participants and given the longer-term regulatory support for
this asset class, we expect global issuance volumes to increase
significantly. Building on Fitch's consistent methodology and
insightful research, the AT1 tool provides comprehensive data and
visibility on this increasingly important and fast-growing
market."

Volumes of AT1 issuance were moderate and country-limited prior
to 2H13 before increasing significantly. The volume of bonds
issues during the first nine months of 2014 -- approximately
USD56 billion -- already exceeds total issuance volume for 2013.

Most European banks have ample scope to issue AT1s, with Basel
III/CRDIV regulations providing an incentive to do so.
Accordingly, Fitch expects AT1 issuance by western European banks
to be strong over the long-term, albeit punctuated by periods of
shortage when markets are volatile.

In Asia, AT1 issuance is also expected to grow. Bank of China
recently announced sizeable AT1 transactions and we expect other
large Chinese banks to follow. Similarly, we expect Indian banks
to start issuing AT1 instruments in the medium-term.

Fitch will regularly republish the Banks AT1 tracker dashboard
and update the AT1 Tracker Tool to include any omitted or newly
issued bonds, to update issuer financial data used to assess
trigger points, and to incorporate market feedback on its
functionality.


                            *********

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.


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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
202-362-8552.


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