TCREUR_Public/141029.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 29, 2014, Vol. 15, No. 214

                            Headlines

D E N M A R K

TORM A/S: Enters Into Debt Restructuring Deal with Oaktree


F I N L A N D

NOKIA OYJ: Moody's Changes Outlook on 'Ba2' CFR to Positive


F R A N C E

LABCO SA: Fitch Affirms 'B+' Long-Term Issuer Default Rating


I R E L A N D

IRISH BANK: A1 to Auction Quinn Asset on Dec. 5


N E T H E R L A N D S

GROSVENOR PLACE CLO 2013-1: Fitch Affirms B- Rating on Cl E Notes


P O R T U G A L

HIPOTOTTA NO. 4: Fitch Cuts Rating on Class C Notes to 'CCCsf'


R O M A N I A

ADM FARM: Seeks Creditor Arrangement to Optimize Cash Flow


R U S S I A

* RUSSIA: Fitch Says US Anti-Dumping Duties Won't Hit Steel Cos.


S P A I N

BANKIA SA: Needs Just Over Half of EUR41BB Bailout to Stay Afloat
CAIXA PENEDES 1: Moody's Cuts Rating on EUR19.4MM C Notes to Caa3
LIBERBANK SA: Has A EUR32.2 Million Capital Deficit in 2013
RURAL HIPOTECARIO V: Moody's Lifts EUR9.4MM Notes' Rating to Ba3
* SPAIN: ECB Stress Test Shows Improvement in Banking Sector


S W I T Z E R L A N D

IX SWISS: Is Insolvent; Co-Founder Blames Investors


T U R K E Y

GLOBAL LIMAN: Moody's Assigns 'B1' Corporate Family Rating
GLOBAL LIMAN: Fitch Rates Sr. Unsecured 2021 Notes 'BB-(EXP)'


U K R A I N E

MRIYA AGRO: Lacks Comprehensive Business Plan, Creditors Say


U N I T E D   K I N G D O M

HEALTHCARE SUPPORT: S&P Cuts Sr. Secured Debt Ratings to 'B+'
I AM IT: Enters Into Pre-Pack Administration
MARUSSIA F1: In Administration; Up to 200 Jobs at Risk
MF GlOBAL FINANCE: November 17 Claims Filing Deadline Set
MF GlOBAL OVERSEAS: November 17 Claims Filing Deadline Set

SLATE NO. 1 PLC: Moody's Assigns 'Ba3' Rating to Class E Notes
SLATE NO. 2 PLC: Moody's Assigns 'Ba3' Rating to Class E Notes
TAURUS 2006-3 PLC: Moody's Cuts Rating on EUR336MM A Notes to Ba3


                            *********


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D E N M A R K
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TORM A/S: Enters Into Debt Restructuring Deal with Oaktree
-----------------------------------------------------------
Ole Mikkelsen at Reuters reports that debt-stricken Torm said on
Oct. 27 it had agreed a deal with group of its lenders and
Oaktree Capital Management, a large U.S. investor in distressed
debt, to restructure the company.

Torm's net interest-bearing debt amounts to US$1.4 billion,
Reuters discloses.  It ordered a series of new vessels in the
years before the global economic downturn and was then hit by
collapsing freight rates, Reuters relates.

According to Reuters, the restructuring is expected to stipulate
that the lenders will initially write down the debt to the
current asset values in exchange for warrants, and may elect to
convert part of the remaining debt into new equity in the
company.

"Oaktree would contribute product tanker vessels in exchange for
a controlling equity stake in the combined company," Reuters
quotes the company as saying in the statement.

More details of the agreement with lenders, representing 61% of
the company's financing, were not disclosed but Torm expects the
deal to reinforce its position as one of the largest owners in
the global product tanker market, Reuters notes.

It is expected that the restructuring will result in a
substantial dilution of the existing shareholders in Torm, the
company, as cited by Reuters, said, adding that it expected to
present the final plan no later than the first quarter of next
year.

Torm A/S -- http://www.torm.com-- is a Denmark-based shipping
company engaged in the provision of integrated freight services
to industrial customers. TORM is a carrier of refined oil
products, as well as a participant in the dry bulk market.  The
Company runs a fleet of approximately 140 modern vessels,
principally through cooperation with other respected shipping
companies.  As of March 31, 2013, the Company's fleet of owned
and finance leased vessels consisted of 65 product tankers and
two dry bulk carriers.  The total tonnage of those vessels was
approximately 3.8 million deadweight.  In addition, the Company
chartered-in 11 product tankers and 28 dry bulk carriers and
commercially managed approximately 20 vessels for third-party
owners and charterers.  The Company operates in two segments: the
Tanker Division and the Bulk Division. In April 2014, the Company
sold 13 product tankers to entities controlled by Oaktree Capital
Management.



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F I N L A N D
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NOKIA OYJ: Moody's Changes Outlook on 'Ba2' CFR to Positive
-----------------------------------------------------------
Moody's Investors Service has changed to positive from stable the
outlook on the Ba2 corporate family rating (CFR) of Nokia Oyj
(Nokia), following the company's stronger-than-expected results
for the first nine months of 2014, as well as the upward revision
to slightly above 11% from 5%-10% of its guidance for 2014
operating margins.

At the same time, Moody's has changed to positive from stable the
outlook on the respective Ba2 and provisional (P)Ba2 ratings of
Nokia's senior unsecured notes and medium-term note (MTN)
program. Concurrently, Moody's has affirmed Nokia's Ba2 CFR, Ba2-
PD probability of default rating (PDR) the Ba2 and provisional
(P)Ba2 ratings of Nokia's senior unsecured notes and medium-term
note (MTN) program. The NP/(P)NP short-term senior unsecured
ratings of Nokia and Nokia Finance International B.V. have also
been affirmed.

"The positive outlook reflects Moody's view that Nokia's credit
metrics could improve following the company's stronger-than-
expected results in the third quarter and in the last nine
months," says Roberto Pozzi, a Moody's Vice President -- Senior
Credit Officer and lead analyst for Nokia. "Moreover, if Nokia is
able to sustain the ongoing positive performance in revenues,
operating margins and cash flow generation, Moody's could
consider upgrading its ratings over the next 12 months."

Ratings Rationale

The outlook change to positive follows Nokia's announcement of
stronger-than-anticipated third quarter results, with revenues up
13% to EUR3.3 billion compared to the same period in 2013, which
represents the first year-on-year increase since 2011. At the
same time, Nokia's (company's adjusted) operating profit rose 33%
year on year to EUR457 million, prompting the company to revise
its margin guidance for the year upward to slightly above 11%
from 5%-10%.

The improved results reflect recent contract wins in the Long-
Term Evolution (LTE) market in North America and China, as well
the positive effects of previous cost reduction measures and more
focused but also, in Moody's view, riskier strategy. Around half
of the company's revenue came from mobile broadband sales, which
generate higher margins than services or network modernization
programs, but also tend to be more volatile. Revenues at HERE,
the company's mapping business, also increased by 12% year on
year to EUR236 million, although only breaking even compared to
an operating profit of EUR21 million in the same period last
year. The company's Nokia Technologies' business generated
revenues of EUR152 million, up 9% year on year, with an operating
margin of 65%, up from 60% last year. Other highlights of the
quarter were a EUR1.2 billion charge to write down the value of
goodwill at HERE, which was offset by a one-time gain of EUR2.0
billion on deferred tax assets in Finland and Germany.

Although the results bode well for the future, the company
acknowledges that its wireless infrastructure business is
somewhat seasonal. In the fourth quarter, Nokia already expects
that a higher share of revenues will come from lower gross margin
services than in the previous quarter. While Global Services
business typically has lower gross margin that Mobile Broadband,
it has generated six consecutive quarters of non-IFRS operating
margin above 10%. In Moody's opinion, a degree of uncertainty
over the sustainability of Nokia's recent results remain,
however, Moody's recognize the strongly positive trend of the
company's results in the last nine months.

Nokia's Ba2 CFR reflects the company's good competitive position
in the mobile networks industry, in which Moody's expects
moderate growth to be supported by the ongoing growth of data and
video traffic over communications networks. The rating also
considers Nokia's (1) solid liquidity profile, increasing free
cash flow generation and moderate financial leverage on a gross,
Moody's adjusted basis; (2) Nokia Technologies' business
(particularly its intellectual property licensing); and (3) HERE
location business, which provides further cash flow and business
diversification for the company.

That said, the rating is constrained by (1) the company's smaller
scale and narrower market focus relative to industry leaders
Telefonaktiebolaget LM Ericsson (Baa1 stable) and Huawei
(unrated); (2) the intensity of competition, volatility and
cyclicality of the mobile network equipment industry; and (3) the
need for the company to establish a track record in terms of
performance and, particularly, free cash flow generation.

At the current rating level, Moody's expects that Nokia's
revenues will increase in the mid-single digits and that
operating margins will stabilize in the low double-digits over
the next 12-18 months, driven by (1) modestly improving demand
and market share gains in 4G/LTE and other industry segments; and
(2) the company's high margin intellectual property licensing
business, which continues to be part of the Nokia Group. The
rating agency anticipates that Nokia will maintain a solid credit
profile over the same period, with debt/EBITDA of approximately
2x, free cash flow (FCF)/ debt exceeding 10% and an EBIT interest
coverage above 6x (all ratios are Moody's adjusted and based on
gross debt), as the company executes its capital structure
optimization program. In May 2014 Nokia announced plans to return
EUR3 billion to shareholders through dividends and share
repurchases, both of which commenced in the third quarter of
2014, and to reduce gross debt by EUR2 billion over the next two
years.

Moody's expects that Nokia will maintain a strong liquidity
profile even after considering the company's plan to complete the
distribution of EUR3 billion to shareholders by Q2 2016 (via
dividends and share repurchases). During the first nine months of
2014, Nokia reported operating cash flow of approximately EUR1.1
billion before capital expenditure and acquisitions of EUR0.2
billion each; as well as returns to shareholders. At the current
rating level, Moody's expects that the company will generate
breakeven FCF in 2014, despite cash outflows related to
restructuring of EUR450 million, and over EUR300 million of FCF
in 2015. The company's recent performance, however, suggests that
FCF generation could significantly exceed Moody's expectations
over the next 12-18 months.

During the third quarter, Nokia paid a special dividend of around
EUR1.0 billion and an ordinary dividend of EUR0.4 billion whilst
also commencing share repurchases totaling EUR220 million under
its capital structure optimization program. At the end of the
third quarter, the company reported gross cash of EUR7.6 billion
and net cash of EUR5.0 billion compared to EUR9.0 billion and
EUR6.5 billion, respectively, at the end of the second quarter of
2014. The company redeemed in June 2014 the NSN EUR450 million
6.75% bonds due April 2018 and the NSN EUR350 million 7.125%
bonds due April 2020, as well as approximately EUR150 million
other debt, in line with the plan to reduce gross debt by EUR2
billion over two years starting from Q2 / 2014. Nokia also
returned approximately EUR1.6 billion to shareholders through
dividends and share repurchases during the third quarter of
2014.Over the next 12 months, Moody's expect the company to
distribute an additional EUR1.2-1.4 billion to shareholders. The
group has no major debt maturities until a EUR750 million
convertible bond matures in 2017 and a EUR500 million and
US$1,000 million bonds in 2019.

Rationale for Positive Outlook

The positive rating outlook reflects Moody's expectations that
Nokia will continue to maintain a good competitive position
against larger competitors, such as Ericsson and Huawei, while
maintaining a robust liquidity profile and modest financial
leverage, which will allow the company to sustain investments in
product development.

What Could Change the Rating -- Up/Down

Nokia's ratings could be upgraded if the company sustainably
increases its market share, as evidenced by revenue growth
exceeding that of its main competitors, while maintaining good
profitability, moderate leverage and sustainable positive FCF
generation.

A loss of market share or a decline in profitability could create
negative rating pressure. Also, negative rating pressure could
develop if the company leverage deteriorated as a result of a
more aggressive financial policy, as evidenced by debt/EBITDA
sustained above 3x. The current rating also factors in the
maintenance of a solid liquidity position.

Following the sale of its handset operations to Microsoft
Corporation (Aaa stable) completed in late April 2014, Nokia
operates three businesses (Nokia Networks, HERE and Nokia
Technologies), with revenues of about EUR12.7 billion in 2013.
Nokia Networks (87% of revenues) is a leading provider of radio
access/mobile broadband wireless equipment and services to
carriers. It provides mobile, fixed and converged network
technologies as well as services, mainly to telecom carriers.
HERE (7% of revenues) provides digital map data and location-
based content and services for automotive navigation systems but
also for other applications. Nokia Technologies (6% of group
revenues) is a licensing, brand and technology development
business with around 30,000 patents.

Principal Methodology

The principal methodology used in these ratings was the Global
Communications Equipment Industry published in June 2008. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.



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F R A N C E
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LABCO SA: Fitch Affirms 'B+' Long-Term Issuer Default Rating
------------------------------------------------------------
Fitch Ratings has affirmed France-based clinical laboratory
services company Labco SA's Long-term Issuer Default Rating (IDR)
at 'B+' with a Stable Outlook. Fitch has also affirmed the senior
secured notes' ratings at 'BB-'/'RR3' and the super senior
revolving credit facility's (RCF) ratings at 'BB'/'RR2'.

"The affirmation reflects Labco's resilient like-for-like (LFL)
performance for 1H14, as healthy testing volumes continued to
mitigate on-going tariff pressure across most countries the group
operates in. We therefore expect organic revenue growth to remain
in the low single-digits over the medium term," Fitch said.

"While Labco's on-going acquisition strategy should provide
incremental earnings, we continue to expect M&A will be partly
debt-funded and therefore allowing mild deleveraging prospects by
FY17. However, we forecast medium-term credit metrics will remain
consistent with a 'B+' IDR, compared with immediate rated peers
within the healthcare sector."

Key Rating Drivers

Leading Clinical Laboratory Services Group
"Labco is the largest clinical laboratory services company in
France for routine tests and in Iberia for routine and specialty
testing. It is also a pan-European player thanks to its
additional presence in Belgium and Italy, and to a lesser extent,
the UK and Switzerland. In our view, Labco's earnings profile
benefits from this geographical diversity as it reduces the
group's exposure to single healthcare systems," Fitch said.

Organic Performance to Remain Subdued
"Laboratory testing markets are underpinned by broadly favorable
demographics and socio- economic factors that support organic
volume growth. However, sustained price pressures by the ultimate
payers such as governments and insurance companies are likely to
constrain organic growth prospects in the medium term. In this
environment, we expect large European players such as Labco to
withstand the negative impact of tariff pressure on their
profitability margins through economies of scale and operational
efficiencies generated within regional and technical platforms,"
Fitch said.

Evolving M&A Strategy
"While small bolt-on acquisitions of routine labs remain core to
Labco's consolidation strategy (particularly in France), the
group has broadened the scope of its M&A targets to mid-sized
players such as Italy-based SDN Group in July 2014. We believe
that such acquisitions carry slightly higher integration risk
than the proven bolt-on, routine lab consolidation. However, such
acquisitions should provide further diversification benefits to
Labco's earnings stream (for example diagnostic imaging and
nuclear medicine in the case of SDN) and help the group protect
its operating margins from tariff pressure in the routine
segment," Fitch said.

Business Rationalization but Slow Deleveraging
"Following the disposal of the lower-margin German operations in
2013, whose proceeds largely enabled Labco to fund the
acquisition of SDN in 2014, we project credit metrics will
improve mildly over the medium term, supported by a proven free
cash flow generation capacity. However, we expect funds from
operations (FFO) adjusted gross leverage to remain around 6.0x by
FY17 (assuming full-year contribution from acquisitions). While
weak overall, we believe that credit metrics remain commensurate
with those of Cerba European Lab SAS (B+/Stable) and a 'B+' IDR
within the healthcare sector. Any other deleveraging impact
arising, for instance, from a potential IPO would be considered
as positive event risk," Fitch said.

Above-average Recovery Prospects
Fitch continues to apply a distressed EV/EBITDA multiple of 6x
when assigning bespoke recoveries to Labco. Following the
acquisition of SDN in Italy, we expect recoveries on the senior
secured notes will remain firmly within the 'RR3' range (51% to
70%). The likely continued draw down of the RCF for acquisitions
should increase Labco's enterprise value in the long-term and
therefore further support the 'RR3' rating.

Rating Sensitivities

Negative: Future developments that could lead to negative rating
action include:

-- FFO adjusted gross leverage greater than 6.5x and FFO fixed
    charge cover of less than 1.5x on a sustained basis (both
    adjusted for acquisitions)

-- Reduction in FCF margin to mildly positive territory (FY13:
    about 4%), while maintaining debt-funded acquisition strategy

-- A larger, debt-funded and margin-dilutive acquisition.

Labco's ability to source, execute and extract additional cost
savings from acquiring clinical laboratories at attractive EBITDA
multiples is a key factor underpinning the current rating.

Positive: As we expect Labco's M&A strategy to remain largely
debt-funded, thereby supporting only mild deleveraging, an
upgrade is unlikely in the medium term. However longer-term,
future developments that could lead to positive rating actions
include:

-- FFO adjusted gross leverage below 5x and FFO fixed charge
    cover above 2.5x on a sustained basis

-- Continued industry leading profitability with at least mid-
    single digit free cash flow as a percentage of revenue

Liquidity and Debt Structure

Manageable Debt Maturity Profile

There is no amortisation in the foreseeable future other than
Labco's RCF and EUR600 million senior secured notes, which mature
in July 2017 and January 2018, respectively.

Adequate Liquidity

Following the completion of SDN and further bolt-on acquisitions
planned for the rest of 2014, as well as about EUR20m of cash
returned to shareholders, Fitch expects that readily available
cash will reduce to low levels by FYE14 from EUR95m at end-1H14.
This takes into account an estimated EUR30m we consider as being
not readily available for debt service but as minimum operational
cash balance. Its liquidity profile, supported by EUR128m
available under the RCF as of June 2014, remains adequate for the
ratings.



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IRISH BANK: A1 to Auction Quinn Asset on Dec. 5
-----------------------------------------------
Bloomberg News, citing Kommersant, reports that the Irish
government and Russia's A1 is planning to auction a logistics
park once owned by former billionaire Sean Quinn.

According to Bloomberg, A1, part of billionaire Mikhail Fridman's
Alfa Group, will hold a public auction on Dec. 5 for sale of
Q-Park located in Kazan.

The starting price for property, which exceeds 99.500 square
meters, is RU2.575 billion (EUR40 million), Bloomberg discloses.

Mr. Quinn, once Ireland's richest man, was one of biggest foreign
investors in Russian commercial property during the Celtic Tiger
years before he went bankrupt in January 2012, Bloomberg notes.

IBRC, the former Anglo Irish Bank, set up a joint venture with A1
to recoup real estate assets in Russia and Ukraine accumulated by
Quinn family, Bloomberg relays.

The bank did so because it was convinced there was a conspiracy
to asset-strip the properties of multimillion rent roll and
handover their control to unknown parties, Bloomberg says.  The
bank has alleged that the Quinn family played a key role in
moving these assets out of its control, but this has been denied
by the Quinns, Bloomberg states.

After IBRC was placed into liquidation, a new deal was done
between the bank's special liquidators and A1 to continue to
fight to regain control of the various assets which have been
valued at up to US$500 million, Bloomberg relates.

                   About Irish Bank Resolution

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

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

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

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

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



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GROSVENOR PLACE CLO 2013-1: Fitch Affirms B- Rating on Cl E Notes
-----------------------------------------------------------------
Fitch Ratings has affirmed GROSVENOR PLACE CLO 2013-1 B.V.
Limited as follows:

EUR202.1 million class A-1 affirmed at 'AAAsf'; Outlook Stable
EUR46.4 million class A-2 affirmed at 'AAsf'; Outlook Stable
EUR21 million class B affirmed at 'Asf'; Outlook Stable
EUR18.4 million class C affirmed at 'BBBsf'; Outlook Stable
EUR22.8 million class D affirmed at 'BBsf'; Outlook Stable
EUR11.4 million class E affirmed at 'B-sf'; Outlook Stable

Grosvenor Place CLO 2013-1 B.V. is an arbitrage cash flow
collateralized loan obligation (CLO). Net proceeds from the notes
issue were used to purchase a EUR350 million portfolio of
European leveraged loans and bonds. The portfolio is managed by
CQS Cayman Limited Partnership and sub-managed by CQS Investment
Management Limited. The reinvestment period is scheduled to end
in 2017.

Key Rating Drivers

The affirmation of the notes reflects the transaction's
performance being in line with Fitch's expectations. The
transaction is passing all portfolio quality tests and portfolio
profile tests.

The transaction became effective as of February 2014 after the
initial ramp-up. Between closing in December 2013 and the report
date as of October 2014, credit enhancement increased marginally
on all notes as the aggregate principal balance of the portfolio
was at EUR350.9 million compared with a target par amount of
EUR350 million. The transaction had entered into a restricted
trading period shortly after the effective date and exited it in
August 2014 through documentation amendment and active trading.

The majority of underlying assets are rated in the 'B' category,
little changed over the last 12 months. There are no defaulted
assets or assets rated CCC or below by Fitch. The largest
industry is industry and manufacturing with 9.8%, followed by
broadcasting and media at 9.6%. The largest country is France,
contributing to 21.4% of the portfolio and Netherlands with
16.7%. European peripheral exposure is represented by Spain and
Italy, which make up for 9.7% of the performing portfolio and
cash balance. The 10 largest obligors account for 24.5% of the
portfolio. The largest obligor is 2.49% of the portfolio.

Rating Sensitivities

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



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P O R T U G A L
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HIPOTOTTA NO. 4: Fitch Cuts Rating on Class C Notes to 'CCCsf'
--------------------------------------------------------------
Fitch Ratings has downgraded HipoTotta No. 4 plc's class C notes
and affirmed the class A and B notes, as follows:

Class A (ISIN XS0237370605): affirmed at 'Asf'; Outlook Stable
Class B (ISIN XS0237370787): affirmed at 'Asf'; Outlook Stable
Class C (ISIN XS0237370860: downgraded to 'CCCsf' from 'Bsf'; off
Rating Watch Negative (RWN), Recovery Estimate 95%

The Portuguese RMBS transaction was originated and is serviced by
Santander Totta S.A. (BBB+/Positive/F2).

Key Rating Drivers

Fitch placed the class C notes of HipoTotta No. 4 on RWN on 4
August 2014, pending information on recoveries on properties
taken into possession and sold. Recovery rates reported in the
investor reports suggested that proceeds received from
foreclosure were lower than expected.

Despite requests from Fitch, Santander Totta has not been able to
provide loan-by-loan default and recovery information for the
transaction. As a result, in its analysis Fitch applied the worst
case scenario assumptions based on experience of other Portuguese
lenders. This involved increasing the quick sale adjustment from
40% to 50% and increasing the expected recovery timing to six
years from four years.

Provisioning
The transaction features a provisioning mechanism whereby excess
spread is diverted to principal distributions to cover deemed
principal losses. The amount provisioned is dependent on the
number of monthly instalments in arrears.

To account for the staggered nature of provisions, Fitch has
estimated the amounts of loans that have defaulted, but for which
full provisions have not yet been made to be 0.4% of the
outstanding collateral balance. This balance was deducted from
the credit enhancement, and had no effect on the class A and B
notes' ratings, as reflected in their affirmation.

Counterparty Exposure
In addition the structure is potentially exposed to payment
interruption risk in the event of servicer default. As there are
no alternative mitigants in place, in its analysis Fitch assessed
the liquidity available in the transaction to fully cover senior
fees, net swap payments and note interest in case of servicer
disruption.

The liquidity available to the structure, which is provided by a
reserve fund (reduced by the expected loss), is insufficient to
provide payments to the notes for two interest payment periods in
the event of servicer default. Fitch believes that the
transaction cannot support the highest achievable ratings for
Portuguese structured finance transactions (A+sf), as it is not
adequately equipped to handle collections disruption. In line
with its criteria for structured finance transactions, Fitch
continues to cap the ratings of the class A and B notes at 'Asf'.

Insufficient Credit Enhancement
The downgrade of the junior notes is driven by the thin credit
enhancement available, which no longer passes the 'Bsf' rating
stresses.

Rating Sensitivities

Deterioration in asset performance may result from economic
factors. A corresponding increase in new defaults and associated
pressure on excess spread and reserve funds could result in
negative rating action. Furthermore, an abrupt shift of the
underlying interest rates might jeopardize the underlying loan
affordability of the underlying borrowers.

The ratings are also sensitive to changes in Portugal's Country
Ceiling and consequently changes to the highest achievable rating
of Portuguese structured finance notes.



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ADM FARM: Seeks Creditor Arrangement to Optimize Cash Flow
----------------------------------------------------------
Gabriela Stan at Ziarul Financiar reports that ADM Farm said it
has asked the court for a procedure of arrangement with
creditors, in order to optimize cash flow management and manage
liquidity risks.

ADM Farm is a Romanian pharmaceutical wholesaler.



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R U S S I A
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* RUSSIA: Fitch Says US Anti-Dumping Duties Won't Hit Steel Cos.
----------------------------------------------------------------
Fitch Ratings says the introduction of U.S. anti-dumping duties
on Russian hot rolled steel should not have a significant impact
on Russian steel producers as exports to the U.S. tend to be
opportunistic and companies should be able to redistribute sales
to other markets.

Exports to the US represented 14% of total Russian hot rolled
coil (HRC) steel exports in 1H14, much higher than in 2013 or
2012, when US exports represented just 1% and 4% of the total
respectively. The 1H14 figures indicate Russian producers have
been taking advantage of limited supplies in the US market, due
to severe weather conditions and lower US steel output, which
pushed up US HRC prices by around USD50 per tonne.

Novolipetsk Steel (NLMK) (BBB-/Negative) was one of the biggest
Russian exporters to the US in 1H14. The group sold 128kt of HRC
to the US market, or 22% of the company's total HRC exports. We
believe the group will be able to either redistribute HRC sales
to other markets, such as the Middle East, south America, EU,
southeast Asia or increase sales of steel slabs, which will be
needed by US re-rollers to offset lower HRC availability and
which should not be impacted by the duties. NLMK also owns
several rolling mills in the US, which should not be affected by
the duties.

Severstal (BB+/Stable), whose sales to the US market account for
less than 2% of total revenue, is also likely to redistribute
sales to other markets or use HRC internally for production of
tubes and other high value-added products. Among other producers,
we do not expect any impact on Metalloinvest (BB/Stable), Evraz
(BB-/Stable) or Magnitogorsk Iron and Steel Works (MMK)
(BB+/Negative) as they have not exported HRC to the US.

Dumping margins are reportedly due to be imposed from Dec. 16
after the US Department of Commerce decided to terminate an
agreement suspending an anti-dumping investigation into hot-
rolled, flat-rolled carbon quality steel. For the past 15 years,
Russian steel producers' exports to the US were capped in volumes
by quota (1.1mtpy) only but were not subject to imposed duties.
The decision follows the introduction of US sanctions on Russia
over its intervention in Ukraine in recent months. The duties
will reportedly be around 74% for Severstal (BB+/Stable) and 185%
for other producers.



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


BANKIA SA: Needs Just Over Half of EUR41BB Bailout to Stay Afloat
-----------------------------------------------------------------
Raphael Minder, writing for The New York Times, reports that
Bankia S.A. has arguably been Exhibit A in Spain's banking
turnaround, even as its former management team remains under
investigation over its handling of an initial public offering and
the bank faces accusations that its directors made personal
purchases totaling about EUr15 million using unaccounted
corporate credit cards.

According to The New York Times, Bankia, which was the result of
a seven-way merger of savings banks, needed just over half of the
EUR41 billion European bailout to stay afloat, after being
nationalized in May 2012.  It returned to profit in 2013, after
cutting staff and selling assets, and has since continued to post
strong earnings, The New York Times discloses.

Last week, Bankia reported that third-quarter profit had risen
65%, to EUR266 million, from the year-earlier period, The New
York Times relates.

The Spanish government is hoping to fully divest its controlling
stake in Bankia, but has not set a timetable to do so, The New
York Times states.

Bankia SA is a Spanish banking conglomerate that was formed in
December 2010, consolidating the operations of seven regional
savings banks.  As of 2012, Bankia is the fourth largest bank of
Spain with 12 million customers.


CAIXA PENEDES 1: Moody's Cuts Rating on EUR19.4MM C Notes to Caa3
-----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on seven
notes, confirmed the rating on one note and downgraded the
ratings on four notes in four Spanish asset-backed securities
(ABS) transactions: CAIXA PENEDES PYMES 1 TDA, FTA (CAIXA PENEDES
PYMES 1), GAT FTGENCAT 2006, FTA (GAT FTGENCAT 2006), GC FTGENCAT
CAIXA TARRAGONA 1, FTA (GC CAIXA TARRAGONA 1), and PYME VALENCIA
1, FTA (PYME VALENCIA 1).

The rating action concludes the review of 11 notes initiated 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 upgrades reflect (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 four
tranches in three transactions (CAIXA PENEDES PYMES 1, GC CAIXA
TARRAGONA 1 and PYME VALENCIA 1) was due to the continued weak
performance of those transactions, which reduced the credit
enhancement available to those tranches, and increased borrower
concentration issues.

-- Reduced sovereign risk

Moody's upgraded the Spanish sovereign rating 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 upgrade of seven notes. Weak
performance in CAIXA PENEDES PYMES 1, GC CAIXA TARRAGONA 1 and
PYME VALENCIA 1, resulting in reduced credit enhancement, and
increased borrower concentration risk, prompted a downgrade of
some tranches.

-- Key collateral assumptions

Moody's has updated some of the key collateral assumptions as
part of this review. In CAIXA PENEDES PYMES 1 and GC CAIXA
TARRAGONA 1, the performance of the underlying asset portfolio
was worse than expected by Moody's, prompting the increase in the
default probability assumption over the remaining life of the
transaction. For the two other transactions, the performance of
the underlying asset portfolios remains in line with Moody's
assumptions. Moody's also has a stable outlook for Spanish ABS
and RMBS transactions.

In CAIXA PENEDES PYMES 1, the updated default probability (DP) on
the current balance of 22.6% (corresponding to a DP on the
original balance of 20.7%), together with an unchanged recovery
rate of 52.5% and an updated volatility of 59.8%, corresponds to
an updated portfolio credit enhancement of 28.4%. The increased
credit enhancement available to class A and B prompted their
upgrade while the credit enhancement reduction of class C
prompted its downgrade.

In GAT FTGENCAT 2006, the unchanged DP on the current balance of
20.0% (corresponding to a DP on the original balance of 15.2%),
together with an unchanged recovery rate of 50.0% and an updated
volatility of 51.0%, corresponds to an updated portfolio credit
enhancement of 25.8%. Borrower concentration risk constrained
class C's rating, with its credit enhancement covering for the
six largest borrowers.

In GC CAIXA TARRAGONA 1, the updated DP on the current balance of
30.3% (corresponding to a DP on the original balance of 30.7%),
together with an updated recovery rate of 50.0% and an updated
volatility of 48.9%, corresponds to an updated portfolio credit
enhancement of 34.3%.

In PYME VALENCIA 1, the unchanged DP on the current balance of
25.0% (corresponding to a DP on the original balance of 21.6%),
together with an unchanged recovery rate of 45.0% and an updated
volatility of 46.3%, corresponds to an unchanged portfolio credit
enhancement of 34.4%. Borrower concentration risk constrained
class B's rating, with its credit enhancement covering for the
five largest borrowers.

  -- Exposure to counterparties

Moody's rating analysis also took into consideration the exposure
to key transaction counterparties. In CAIXA PENEDES PYMES 1, the
servicer is Banco Sabadell S.A. (Ba2 / NP); in GAT FTGENCAT 2006
and GC CAIXA TARRAGONA 1, it is Catalunya Banc SA (B3 / NP); and
in PYME VALENCIA 1, it is Caixabank (Baa3 / P-3). BNP Paribas
Securities Services (A1 / P-1) holds the reserve fund in CAIXA
PENEDES PYMES 1, while Barclays Bank (A2 / P-1) holds it in all
three other transactions.

All four transactions have interest rate swaps: the
counterparties are JP Morgan Chase Bank, N.A., London Branch (Aa3
/ P-1) in CAIXA PENEDES PYMES 1, Catalunya Banc SA in GAT
FTGENCAT 2006, CECABANK S.A. (Ba3 / NP) in GC CAIXA TARRAGONA 1
and Banco Bilbao Vizcaya Argentaria S.A. (BBVA, Baa2 / P-2) in
PYME VALENCIA 1. Moody's notes that the ratings on class B notes
in GC CAIXA TARRAGONA 1 and on class B notes in PYME VALENCIA 1
are strongly linked to the respective swap counterparty's given
the structure of the swap agreement. Indeed, in those two
transactions, the special purpose vehicle pays the interest
amounts received under the portfolio of assets to the
counterparty and receives the weighted average coupon on a
notional equal to the notes outstanding balance, including the
unpaid principal deficiency ledger (PDL ) if any, plus some
guaranteed excess spread. Therefore, in the presence of PDL, the
special purpose vehicle will receive interests on a notional,
which is greater than the actual notional of performing assets,
increasing the actual excess spread available to the structure.

In its analysis, Moody's has taken into account the linkage to
the swap counterparty given the benefit the swap provides to the
transaction.

Principal Methodology

The principal methodology used was "Moody's Global Approach to
Rating SME Balance Sheet Securitizations", published in January
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)
better-than-expected performance of the underlying collateral,
(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) worse-
than-expected performance of the underlying collateral, (3)
deterioration in the notes' available credit enhancement and (4)
deterioration in the credit quality of the transaction
counterparties.

List of Affected Ratings

Issuer: CAIXA PENEDES PYMES 1 TDA, FTA

EUR726M A Notes, Upgraded to A1 (sf); previously on Mar 17, 2014
A3 (sf) Placed Under Review for Possible Upgrade

EUR44.6M B Notes, Upgraded to Ba2 (sf); previously on Mar 17,
2014 Ba3 (sf) Placed Under Review for Possible Upgrade

EUR19.4M C Notes, Downgraded to Caa3 (sf); previously on Apr 18,
2013 Upgraded to Caa1 (sf)

Issuer: GAT FTGENCAT 2006, FTA

EUR239.1M A2(G) Notes, Upgraded to A1 (sf); previously on Mar
17, 2014 A3 (sf) Placed Under Review for Possible Upgrade

EUR5.1M B Notes, Upgraded to A1 (sf); previously on Mar 17, 2014
A3 (sf) Placed Under Review for Possible Upgrade

EUR12.3M C Notes, Confirmed at Ba2 (sf); previously on Mar 17,
2014 Ba2 (sf) Placed Under Review for Possible Upgrade

Issuer: GC FTGENCAT CAIXA TARRAGONA 1, FTA

EUR93.2M AG Notes, Upgraded to A1 (sf); previously on Mar 17,
2014 A3 (sf) Placed Under Review for Possible Upgrade

EUR104.3M AS Notes, Upgraded to A1 (sf); previously on Mar 17,
2014 A3 (sf) Placed Under Review for Possible Upgrade

EUR25.7M B Notes, Downgraded to Ba2 (sf); previously on Mar 17,
2014 Baa1 (sf) Placed Under Review for Possible Upgrade

EUR16.8M C Notes, Downgraded to Caa3 (sf); previously on Mar 17,
2014 B3 (sf) Placed Under Review for Possible Upgrade

Issuer: PYME VALENCIA 1, FTA

EUR574.8M A2 Notes, Upgraded to A1 (sf); previously on Mar 17,
2014 A3 (sf) Placed Under Review for Possible Upgrade

EUR47.6M B Notes, Downgraded to Ba1 (sf); previously on Mar 17,
2014 Baa3 (sf) Placed Under Review for Possible Upgrade


LIBERBANK SA: Has A EUR32.2 Million Capital Deficit in 2013
-----------------------------------------------------------
Raphael Minder at The New York Times, citing results released by
the European Central Bank on Oct. 26, reports that of the 15
Spanish banks examined by the central bank, only one -- the small
lender Liberbank -- was shown to have a capital deficit at the
end of 2013.

At the end of last year, Liberbank had a deficit of EUR32.2
million, but since then it has taken steps to bolster its
finances, including a capital increase in June that was fully
subscribed by investors and yielded EUR475 million of fresh
money, The New York Times relates.

Liberbank SA -- http://www.liberbank.es-- is a Spain-based
commercial bank. It operates through retail offices in such
Spanish regions as Asturia, Cantabria, Casilla La Mancha and
Extramadura. The Bank contributes the assets and liabilities of
the banking business and through conducting financial business.
It owns such brands as Cajastur, Caja Extramadura, Caja Cantabria
and CCM. The Company's major shareholder is Caja de Ahorros de
Asturias.


                          *   *   *

As reported by the Troubled Company Reporter-Europe on July 15,
2013, Moody's Investors Service downgraded to Ba1 from Baa2 (on
review for downgrade) the ratings of the mortgage covered bond
issued by Liberbank, S.A. (deposits B1 negative, standalone bank
financial strength rating E+/baseline credit assessment b2
negative).  This rating action follows Moody's decision to
downgrade the senior unsecured rating of Liberbank, which
supports these covered bonds.


RURAL HIPOTECARIO V: Moody's Lifts EUR9.4MM Notes' Rating to Ba3
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of five notes
and confirmed the rating of one note in two Spanish residential
mortgage-backed securities (RMBS) transactions: AyT Colaterales
Global Hipotecario, FTA Caixa Galicia I and RURAL HIPOTECARIO V,
FTA.

The rating action concludes the review of six 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).

-- Key collateral assumptions

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

-- Exposure to Counterparties

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

The rating action takes into account commingling exposure to NCG
Banco S.A. acting as servicer in the AyT Colaterales Global
Hipotecario, FTA Caixa Galicia I transaction and the several
Cajas Rurales acting as servicers in the RURAL HIPOTECARIO V, FTA
transaction.

Moody's also assessed the exposure to CECABANK S.A. acting as
swap counterparty in the AyT Colaterales Global Hipotecario, FTA
Caixa Galicia I transaction when revising ratings. There is no
swap in place for the RURAL HIPOTECARIO V, FTA transaction.

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: AyT Colaterales Global Hipotecario, FTA Caixa Galicia I

EUR826.2M A Notes, Upgraded to A1 (sf); previously on Mar 17,
2014 A3 (sf) Placed Under Review for Possible Upgrade

EUR36.9M B Notes, Upgraded to Baa3 (sf); previously on Mar 17,
2014 Ba1 (sf) Placed Under Review for Possible Upgrade

EUR21.6M C Notes, Confirmed at B3 (sf); previously on Mar 17,
2014 B3 (sf) Placed Under Review for Possible Upgrade

Issuer: RURAL HIPOTECARIO V, FTA

EUR566.8M A1 Notes, Upgraded to A2 (sf); previously on Mar 17,
2014 Baa1 (sf) Placed Under Review for Possible Upgrade

EUR18.8M B Notes, Upgraded to Ba1 (sf); previously on Mar 17,
2014 Ba2 (sf) Placed Under Review for Possible Upgrade

EUR9.4M C Notes, Upgraded to Ba3 (sf); previously on Mar 17,
2014 B1 (sf) Placed Under Review for Possible Upgrade


* SPAIN: ECB Stress Test Shows Improvement in Banking Sector
------------------------------------------------------------
Raphael Minder at The New York Times reports that the slimmed-
down Spanish banking sector, bolstered by significant provisions
against bad mortgage loans and fresh capital injections from
private investors, can take comfort in the results of stress
tests by the European Central Bank.

Of the 15 Spanish banks examined by the central bank, only one --
the small lender Liberbank -- was shown to have a capital deficit
at the end of 2013, The New York Times discloses.

Spanish officials welcomed the results of the European Central
Bank review, which they said demonstrated that the country's
banking sector had bounced back since it was close to collapse in
2012, The New York Times relates.

According to The New York Times, Luis de Guindos, Spain's economy
minister, said on Oct. 27 that the results showed that "the
stigma of Spanish banks has disappeared."  In terms of Spain's
overall economy, which came out of recession in late 2013 and has
since outperformed most other European economies, "there is no
recovery without a solvent banking sector," The New York Times
quotes Mr. de Guindos as saying.

Luis Maria Linde, the governor of Spain's central bank, noted
during a news conference on Oct. 26 that Spanish banks had taken
almost EUR280 billion in charges from 2008 to June 2014, to
increase provisions against bad loans made to a property sector
whose bubble burst in 2008, shortly after the start of the
financial crisis, The New York Times relates.

Mr. Linde, as cited by The New York Times, said the results
showed the restructuring efforts had "yielded fruit" and forecast
that Spanish banks "face the future with healthy balance sheets
and solid solvency positions."

Banco Santander and BBVA, the two Spanish banks that have led the
sector's international expansion, were among the best performers
in the central bank tests, showing generous capital cushions
under the review's most adverse economic crisis situation, The
New York Times notes.

The banking crisis in Spain mostly affected the savings banks, or
cajas, that led reckless property lending during the construction
boom, in part under the pressure of politicians who sat on their
boards, The New York Times relays.



=====================
S W I T Z E R L A N D
=====================


IX SWISS: Is Insolvent; Co-Founder Blames Investors
---------------------------------------------------
Telecompaper, citing website Netzwoche.ch, reports that data
centre operator IX Swiss has become insolvent with co-founder
Fritz van der Graaff chiefly blaming investors.  The investors
deny this, the website added.

IX Swiss opened its data centres in 2013, with the Bern one
ranked Tier 3+ and the Zurich one ranked Tier 3.

Telecompaper relates that Mr. Graaff blamed main owner Asia-
Pacific Swiss Datacenter for being unwilling to invest in the
company.

According to the report, former president of the company and
investor representative David Mapley said when Asia-Pacific Swiss
Datacenter took over 90 percent of IX Swiss earlier this year, he
believed the company had a viable future, but a closer look
revealed problems.  Among other things, it bore the cost of the
'Carriers Lunch' ICT networking platform, including eight days'
worth of travel and related expenses, even though this was not a
part of its core operation, the report relays.

Mr. Mapley also said the company turned out not to be well run,
and staff were poorly trained.  New business that had been
promised could not be realised, either, the report notes.



===========
T U R K E Y
===========


GLOBAL LIMAN: Moody's Assigns 'B1' Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service has assigned a B1 corporate family
rating (CFR) and B1-PD probability of default rating (PDR) to
Turkey-based cruise and container port operator, Global Liman
Isletmeleri A.S. (Global Ports Holding or GPH). Concurrently,
Moody's has also assigned a provisional (P)B1 rating to the
company's proposed guaranteed senior unsecured bond issuance of
up to USD275 million due 2021. The outlook on the ratings is
stable. This is the first time Moody's has assigned ratings to
GPH.

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 bond. A definitive rating may
differ from a provisional rating.

The ratings are predicated on the assumption that the proceeds of
the bond will be used to repay all current outstanding bank debt
of GPH and its subsidiaries (TL451 million, USD215 million) --
with the exception of some small finance leases and non recourse
debt at subsidiary level - and all associated security is
released.

Ratings Rationale

-- B1 CORPORATE FAMILY RATING AND B1-PD PROBABILITY OF DEFAULT
RATING

The B1 CFR assigned to GPH is supported by (i) the positive cash
flow generation and high realised operating margins associated
with the company's cruise and cargo ports operated under
concession agreements with very limited operating covenants; (ii)
the increasing diversification deriving from its strengthening
position in the cruise market through its ownership interests in
the ports of Creuers, Ege and Bodrum; and (iii) some flexibility
associated with the company's capital expenditure requirements.

However, the B1 CFR assigned to GPH is constrained by the
company's relatively small-scale operations, dominated by
container activity concentrated at the port of Akdeniz, which
remains the main cash flow contributor for the company
(approximately 70% of total EBITDA as of H1 2014). Moody's notes
that Akdeniz's growth prospects remain constrained by the port's
lack of rail connections. In addition, the port has a relatively
short remaining concession life of 14 years, which further weighs
on GPH's rating.

GPH's cargo activities are expected to account for approximately
60% of total revenues over the medium term. These operations are
characterized by limited diversification, given the strong bias
towards exports of marble (mainly to China) and cement (to
Northern Africa and Middle East) and vulnerability to changing
economic and political conditions, given the profile of the
served countries and the absence of long-term take or pay
agreements. Cruise operations, which are anticipated to account
for approximately 30% of total revenues over the medium term, are
also characterized by an element of cyclicality and relatively
limited cash flows visibility, mainly due to the fact that
bookings by cruise operators are generally only finalized one
year in advance. The remaining 10% of GPH's revenues relate to
vessel handling, rental and duty free activities.

GPH's B1 CFR also reflects the risks stemming from the company's
highly acquisitive strategy, as evidenced by the transactions
concluded over the past few months, including the acquisition of
a 62% stake in the port of Bar (Montenegro), the increase of the
stake in the port of Creuers (Spain) to 62% (from 21.5%) and the
acquisition of a 46% (direct and indirect) stake in the cruise
port of Lisbon (Portugal). The total outflow for these
transactions was in the area of approximately EUR80 million
(approximately USD100 million).

GPH's B1 CFR is further constrained by Moody's view of the risk
profile and weaker credit quality of GPH's parent company, Global
Yatirim Holding (GIH), a Turkey-based investment holding company
with investments in energy, ports, real estate and finance
(publicly listed; 28.6% owned by the chairman and chief
executive, Mehmet Kutman). While covenants included in GPH's
proposed bond documentation provide some limitation to the
payment of dividends to the parent company and restrictions on
other up-streamed payments, Moody's concluded that these are not
sufficient to fully de-link GPH's credit profile from that of its
parent.

In order to support current ratings, GPH will need to maintain
the following credit metrics on a sustainable basis: (1) funds
from operations (FFO)/debt of at least in the high teens per cent
and (2) FFO interest cover of at least 3.0x.

-- PROVISIONAL (P)B1 RATING ON THE PROPOSED BOND ISSUANCE OF UP
TO USD275 MILLION

The (P)B1 rating assigned to the senior unsecured bond of up to
USD275 million due in 2021 is in line with GPH's CFR and reflects
the fact that, following the proposed refinancing, the majority
of GPH's group debt (except for TL160 million, USD76 million, non
recourse debt at the level of the Creuers port and TL18 million,
USD9 million, finance leases at subsidiaries) will be pari passu
senior unsecured debt at the GPH level. The bonds benefit from
irrevocable unconditional and timely joint and several guarantees
from GPH's major operating subsidiaries, Ortadogu Antalya Liman
Isletmeleri A.S. (Akdeniz) and Ege Liman Isletmeleri A.S. (Ege).
These subsidiaries accounted for approximately 98% of GPH's
consolidated EBITDA as of YE 2013, but this proportion is
expected to trend to approximately 75% from YE 2014 onwards,
mainly in light of the increasing contribution from the newly
acquired ports of Creuers and Bar.

Rationale for Stable Outlook

The stable outlook reflects Moody's expectation that GPH (i) will
continue to grow its cargo and cruise operations both organically
and through acquisitions; (ii) will be able to increase tariffs
at a rate close to inflation; and (iii) will exhibit positive
free cash flows from 2015 onwards.

What Could Change the Rating Up/Down

Given GPH's strategy, the risks associated the management team's
highly acquisitive approach and the expected continuing evolution
of the group, Moody's does not expect upward rating pressure to
develop in the near term. Moody's would require a period of
settled and stable operations evidencing solid performance and
positive free cash flow generation before considering an upgrade.

Negative pressure on the rating could occur if Moody's expected
GPH's FFO/debt to fall below the high teens per cent and FFO
interest cover to fall below 3.0x on a sustained basis. Moody's
could also lower the rating in the event that the parent company,
GIH, substantially increased its dividend demands from GPH.

Principal Methodology

The methodologies used in this rating were Privately Managed Port
Companies published in May 2013, and Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

Founded in 2004, GPH operates two cruise and ferry ports (Bodrum,
Ege) located on Turkey's Aegean coast and one mixed cruise and
commercial port (Akdeniz) located on Turkey's Mediterranean
coast. In addition, GPH holds a 62% stake in the commercial port
of Bar (Montenegro), a 62% stake in the cruise port of Creuers
(Spain) and a 46% (direct and indirect) stake in the cruise port
of Lisbon (Portugal). As of H1 2014, GPH reported revenues of
TL85 million (USD40 million) and EBITDA of TL47 million (USD22
million).


GLOBAL LIMAN: Fitch Rates Sr. Unsecured 2021 Notes 'BB-(EXP)'
-------------------------------------------------------------
Fitch Ratings has assigned Turkey-based Global Liman Isletmeleri
A.S.'s (GPH) USD275 million senior unsecured notes due 2021 an
expected senior unsecured rating of 'BB-(EXP)' with Stable
Outlook.

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

The 'BB-(EXP)' rating reflect GPH's fairly weak business
attributes and debt structure, even though leverage at 2.2x at
FYE13 was lower than for most peers with higher ratings. The key
weakness of GPH is its exposure to two volatile business
segments: i) the containerized export of marble from Port Akdeniz
(near Antalya), representing 50% of total revenue; and ii) the
passenger cruise business in Kusadasi representing 19% of total
revenue.

Although both segments have historically demonstrated robust
growth, and are highly de-correlated from each other and the
general Turkish economy, each is predominantly reliant on
specific exogenous drivers (China and the construction industry
for marble, foreign tourists for cruises) and exposed to some
competitive pressure. The rating is also constrained by a weak
unsecured debt structure against an acquisitive corporate profile
and by exposure to refinancing risk.

Fitch has focused on GPH's recourse debt perimeter (ie the
Turkish business) since these subsidiaries are the only ones
designated as guarantors for the benefit of GPH creditors. As a
result, GPH's most recent acquisitions are excluded from the
calculation of recourse debt. Fitch also expects that the number
of guarantors may increase over time as new businesses are
assimilated within the group. Fitch has not applied its parent-
subsidiary methodology since we do not consider it likely, given
the covenant package and general restrictions under prevailing
Turkish legislation, that GPH can be adversely directed to
support its parent (Global Yatirim Holding A.S.).
Consequentially, Fitch has rated GPH on a standalone basis.

Key Rating Drivers

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

Volume risk -- Weaker

GPH's most recent performance has been extraordinarily strong
during the global financial crisis, with a 23% volume CAGR
between 2007 and 2013. While impressive, it is also acknowledged
that this growth has been largely fuelled by buoyant Chinese
demand for marbles shipped from Port Akdeniz and cruise ship
calls in the Aegean sea, where Ege Ports offers ready access to
Ephesus. Our base and rating case growth assumptions reflect the
dynamism of these markets. However, from a qualitative point of
view, the concentration on and the narrowness of these two
markets are weaknesses. For instance, a change in the dynamics of
marble trade may affect Akdeniz's throughput or geopolitical
events could disrupt the cruise market for several years.

Price Risk -- Midrange

Whether as a commercial or as a cruise port operator, GPH
benefits from full flexibility in its concessions with regard to
its pricing policy. In that regard, the Turkish competition law
and authorities only prevent against 'excessive and
discriminatory pricing', for which there is no history of
enforcement. The shipping lines calling at the port have not
contested the tariffs so far. The management at GPH typically
favors short-term contracts with its customers, including
incentives at times and there is a certain level of customer
concentration at both Akdeniz and Ege ports. The full flexibility
is balanced by the lack of long-term visibility and results in a
Midrange assessment.

Infrastructure Development and Renewal -- Stronger

None of the Turkish ports within GPH's portfolio has a regulatory
requirement to increase capacity, and all have sufficient
capacity headroom to deliver the expected throughput. However,
some of the new acquisitions are committed to carry out upgrade
as an undertaking of the concession agreement. These works will
most likely be funded on a non-recourse debt at the subsidiary
level, hence the lack of impact for GPH in this assessment.

Debt Structure -- Weaker

At financial close, GPH intends to refinance various bank
facilities (totaling USD204.5 million), with a USD275 million
bullet bond. The balance will be used for general corporate
purposes of the ring fenced group, essentially opportunistic
external growth. The new financing will be corporate unsecured
and as such will not benefit from any security package.

The concentrated and back-ended repayment maturity profile
creates refinancing risk. Given that the track record of Turkish
issuers in the capital markets is only limited, this places
higher reliance on the local bank market, which is still fairly
concentrated but has demonstrated adequate liquidity in recent
times. Furthermore, this new debt will not benefit from
significant covenant protection, apart from the restrictions
imposed on the raising of additional indebtedness if gross
debt/EBITDA exceeds 5x, as this would potentially constitute an
event of default under the bond documents.

Given the cross-jurisdictional nature of the bond issuance
(funding documents are subject to English law, all other matters
subject to Turkish law), enforcement action will require a high
level of coordination and agreement between jurisdictions, of
which there are a limited number of precedents. However, Fitch
highlights the absence of any negative ruling in this regard, ie
judgments made under English law have not been overruled by
Turkish courts.

GPH has consistently maintained conservative levels of debt over
the years despite the adverse economic conditions experienced in
Turkey post-financial crisis (2.2x net debt /EBITDA at FY13).
Fitch's rating case assumes that GPH would be in a position to
maintain its current leverage even in a scenario where GPH has
lost most of its current growth of their business.

However, Fitch considers that the limited set of restrictions in
the proposed new financing would not ultimately prevent the
shareholders in GPH from making distributions through dividends
or otherwise. Therefore, Fitch has used the leverage indicated in
the default covenant as its rating trigger in its guidelines.
Fitch's refinancing analysis suggests that there remains ample
value in the concession to fully repay the outstanding debt
(minimum synthetic 15-year PLCR 2.2x).

Peers

"We compared GPH with a series of Fitch-rated single site ports
and larger ports groups with varying levels of structural
protection for creditors. Mersin Internal Port (MIP) (BBB-/
Stable) is a Turkish peer, which compares similarly in terms of
overall leverage (2.9x net debt/EBITDA in 2013) and deleveraging
capability (expected by Fitch to remain close to the covenant of
3.5x). MIP has a more diversified business profile, a strong
operational sponsor (PSA) and a less acquisitive profile. DP
World (BBB-/Stable) compares similarly in terms of leverage (net
debt/EBITDAR of 3.0x in 2013), a fairly weak debt structure and
lack of business restrictions. However, DP World benefits from
far greater scale and diversification," Fitch said.

Rating Sensitivities

A material reduction of the recourse debt perimeter,
diversification into higher-risk business areas, substantially
negative lawsuit outcomes or weaker prospects for refinancing a
few years before maturity could result in negative rating action,
should net debt/EBITDA exceed 3x over the medium term.

Conversely, a diversification of the asset base leading to
greater stability of cash flow without compromising its financial
performance could result in positive rating action.

GPH is a fairly diversified Turkish port conglomerate with
operations spanning both commercial and cruise activities. The
largest contributor in the group is the commercial port in
Antalya, Port Akdeniz, an export-led facility focused on the
shipment of containerised marbles to Asia. Port Akdeniz benefits
from a virtually captive hinterland with good in-land
connections. In addition to this, the group relies on its cruise
port operations near popular touristic destinations (Ephesus, 1.9
million pax in 2013), a business where it partners with a world-
leading cruise operator.



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


MRIYA AGRO: Lacks Comprehensive Business Plan, Creditors Say
------------------------------------------------------------
Aliaksandr Kudrytski at Bloomberg News reports that a committee
of creditors said in an e-mailed statement that Mriya Agro
Holding Plc lacks a comprehensive business plan.

According to Bloomberg, Mriya Agro's creditors met the company's
management on Oct. 24

The lenders demanded that Mriya Agro present its first half
financial results, Bloomberg relates.  The company declined,
saying the measure was expensive, unnecessary, Bloomberg
discloses.  The company proposed that the lenders forgive
"enormous" sum of its debt, Bloomberg relays.

Mriya Agro Holding Plc is a Ukraine-based agricultural producer.

                         *     *     *

As reported by the Troubled Company Reporter-Europe on Aug. 7,
2014, Fitch Ratings downgraded Ukraine-based agricultural
producer Mriya Agro Holding Public Limited's Long-term foreign
currency Issuer Default Rating (IDR) to 'C' from 'CCC'.  Fitch
said the downgrade reflects substantial uncertainties related to
Mriya's announced balance sheet restructuring plans.  The absence
of information regarding the magnitude of Mriya's failure to make
interest and amortization payments on certain of its debt
obligations and hence the likelihood that cross-default could be
triggered earlier than expected, adds even more uncertainty,
according to Fitch.



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


HEALTHCARE SUPPORT: S&P Cuts Sr. Secured Debt Ratings to 'B+'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'B+' from 'BB-' its
long-term issue ratings on the senior secured debt issued by
U.K.-based special-purpose vehicle Healthcare Support (Newcastle)
Finance PLC (ProjectCo).

S&P has kept the ratings on CreditWatch where they were placed
with developing implications on March 17, 2014.

The recovery rating on these debt instruments is unchanged at
'2', reflecting S&P's expectation of substantial (70%-90%)
recovery in the event of a payment default.

The debt comprises GBP197.82 million senior secured bonds due
2041 and a GBP115.0 million senior secured European Investment
Bank loan due 2038.

Both debt tranches benefit from an unconditional and irrevocable
payment guarantee of scheduled interest and principal provided by
Syncora Guarantee U.K. Ltd. (Syncora).  According to Standard &
Poor's criteria, a long-term rating on a monoline-insured debt
issue reflects the higher of the rating on the monoline and the
Standard & Poor's underlying rating (SPUR).  As Syncora is not
rated by Standard & Poor's, the long-term ratings on the above
issues reflect the SPURs.

The downgrade reflects the ongoing dispute between ProjectCo, the
Newcastle-Upon-Tyne Hospitals National Health Service (NHS)
Foundation Trust (the Trust), and the construction contractor,
Laing O'Rourke, over the completion of the clinical office block
at the Royal Victoria Infirmary in Newcastle.  As a result of the
dispute, the practical completion certificate for phase 8 of the
project's completion has not been issued.  The financing
agreement longstop date passed on July 28, 2014, and the
construction agreement longstop date passed on April 28.  The
project agreement longstop date is now also set to pass on Oct.
28, without the practical completion certificate being issued.
S&P sees an increasing risk that the Trust may seek to terminate
the project agreement.  However, S&P's current base case is that
it won't as long as the construction contractor continues to work
toward resolving the remaining issues that are preventing the
practical completion certificate being issued.  In addition, S&P
notes that, as there is a dispute outstanding on the completion
of phase 8, the actual longstop date associated with this phase
will need to be determined via the dispute resolution procedure.
Finally, S&P notes that the Trust has agreed to provide 21 days'
notice of any intention to terminate and ProjectCo has agreed to
provide 14 days' notice of intent to seek an injunction to
prevent termination.

Following legal action by the construction contractor, which
concluded in July 2014, and a subsequent determination by the
independent tester (IT), S&P understands that there are three
issues outstanding that are preventing phase 8 being certified
complete.  These are:

   -- Toilet spaces have been found to be non-compliant with
      building standards.  The construction joint venture (CJV)
      has completed some additional works to rectify the issues
      and a final inspection by building control and the IT is
      awaited.

   -- All windows must be restricted so that they cannot open
      beyond 120 millimeters.  CJV is currently manufacturing and
      installing the necessary restrictors.

   -- The building must demonstrate that it will not over heat,
      bearing in mind that all windows must be restricted as
      outlined above.  CJV has been working to confirm the
      necessary inputs to an agreed thermal model.  These inputs
      have not yet been provided to the IT and the Trust for
      review.  Once they have been agreed, the thermal model
      outputs will demonstrate if the building is compliant or
      not.

A small number of other potential non-compliance issues remain
but the IT does not consider these to be material to the Trust's
ability to use the office block, and therefore will not, in
themselves, prevent completion.

The project has a preliminary construction phase business
assessment of 'a-'.  However, S&P assess the project's management
as "weak" under its criteria, due to the ongoing dispute between
the parties.  Therefore, S&P lowers the construction phase
business assessment by six notches to 'bb-'.  The project has a
marginally weak construction funding assessment leading to an
overall construction phase SACP of 'b+'.  The construction phase
SACP drives the current rating on ProjectCo.

The preliminary operations phase SACP is 'a-' and the project
demonstrates an assessment of 'aa' under S&P's downside case, due
to its extremely robust performance under this scenario.
Accordingly, the operations phase SACP is 'a'.

S&P does not assign a counterparty dependency assessment to the
project's facilities maintenance contractor Interserve Facilities
Management Ltd., as S&P considers that the project has sufficient
liquidity to replace it if required.  S&P also do not assign a
counterparty dependency assessment to the construction contractor
Laing O'Rourke because, given that construction is more than 98%
complete, S&P considers the remaining works to be minor.

The CreditWatch developing placement reflects S&P's view of the
project's potentially volatile position, given the uncertainty as
to when a settlement to the outstanding disputes will be agreed.

S&P could raise the ratings by several notches if the outstanding
disputes are resolved, and the terms of the settlement reached do
not have a material and negative effect on the financial position
of the project.

Alternately, S&P could lower the ratings by more than two notches
if, following the breach of the project agreement longstop date
on Oct. 28, either party notifies the other of their intent to
terminate the project agreement.


I AM IT: Enters Into Pre-Pack Administration
--------------------------------------------
ChannelWeb reports that City of London reseller I Am IT has
entered into a pre-pack form of administration.

Distributor Exertis Micro-P last month issue a winding-up
petition for the company as a result of unpaid debt, ChannelWeb
recalls.

Essex-headquartered insolvency practice Aspect Plus was appointed
administrator on October 8, the report says.

According to the report, Darren Tapsfield --
dtapsfield@aspectplus.co.uk -- senior manager at Aspect Plus,
said the relevant paperwork is now being prepared and going out
to creditors.

The amount of liabilities is believed to be about GBP700,000 at
this point "but it may go up", Mr. Tapsfield confirmed, with full
details likely to be made public mid-November, ChannelWeb
relates.

As reported exclusively in ChannelWeb last month, I Am IT
managing director Leo Smuga blamed the financial problems on
"difficult" trading conditions and the state of the economy,
which led to a GBP640,690 loss filed for the year ending
March 31, 2013.  That was down from a GBP438,601 profit in the
year ending March 2012, the report says.

Turnover for the same year had slowed by half.  And the disposal
of Autodata Products, another group in the company, had dug the
reseller deeper into trouble.

I Am IT had about 13 staff at the time of the winding-up petition
in late September, having reduced staff numbers from 20 in April
2014, with about three to be potentially rehired in the event of
pre-pack, Mr. Smuga told ChannelWeb.

I Am IT had a string of blue-chip vendors in its stable,
including VMware, Cisco, Microsoft and NetApp and customers
around the globe including the BBC.  Markets included energy,
financial services, gaming/casinos, public sector, and media.


MARUSSIA F1: In Administration; Up to 200 Jobs at Risk
------------------------------------------------------
BBC News reports that Marussia have become the second F1 team to
be placed in administration within days, leaving up to 200 jobs
at risk.

Administrators FRP Advisory said the Banbury-based team would
continue to operate but had already withdrawn from the
forthcoming US Grand Prix, BBC relates.

Caterham, also based in Oxfordshire, was put in administration on
Oct. 24 and will miss the US and Brazilian races, BBC recounts.

In a statement, FRP Advisory, as cited by BBC, said no
redundancies have been made and all staff would be paid in full
until the end of the month.

Like Caterham, Marussia entered F1 at the start of 2010, albeit
under the promise from then FIA president Max Mosley of a budget
cap, BBC recounts.

Teams were encouraged to operate within a GBP40 million budget in
a bid to level the playing field and cut costs, BBC discloses.

It helped lure in three new teams, then known as Manor Grand Prix
(now Marussia), Campos Racing (that later became HRT) and
Lightspeed (now Caterham), but the optional cap was soon scrapped
following disagreements within the sport, BBC states.

HRT went bust at the end of 2012, and now Caterham and Marussia
are poised to follow suit unless new buyers can quickly be found,
according to BBC.



MF GlOBAL FINANCE: November 17 Claims Filing Deadline Set
---------------------------------------------------------
Richard Heis, Michael Pink and Richard Fleming of KPMG LLP, as
Joint Administrators of MF Global Finance Europe Limited, intend
to declare and make a distribution (by way of paying a third
interim dividend) to the Company's preferential creditors (if
any) and unsecured creditors.

Creditors have until November 17, 2014, to submit proofs of debt
and send details of their claim in writing to the Joint
Administrators' attention, c/o KPMG LLP, 8 Salisbury Square,
London EC4Y 8BB or by e-mailing giuseppe.parla@kpmg.co.uk

The Joint Administrators intend to declare and make an interim
distribution to preferential (if any) and unsecured creditors
within two months from November 17, 2014.

The administration proceedings are being conducted in the High
Court of Justice, Chancery Division, Companies Court, No: 9585 of
2011.

MF Global Finance Europe Limited's principal trading address is:

          5 Churchill Place
          Canary Wharf
          London E14 5HU
          United Kingdom

MF Global Finance Europe Limited's registered office is:

          8 Salisbury Square
          London EC4Y 8BB
          United Kingdom

The Joint Administrators were appointed on November 2, 2011.
They can be reached at:

          KPMG LLP
          8 Salisbury Square
          London EC4Y 8BB
          United Kingdom


MF GlOBAL OVERSEAS: November 17 Claims Filing Deadline Set
----------------------------------------------------------
Richard Heis, Michael Pink and Richard Fleming of KPMG LLP, as
Joint Administrators of MF Global Overseas Limited, intend to
declare and make a distribution (by way of paying a third interim
dividend) to the Company's preferential creditors (if any) and
unsecured creditors.

Creditors have until November 17, 2014, to submit proofs of debt
and send details of their claim in writing to the Joint
Administrators attention, c/o KPMG LLP, 8 Salisbury Square,
London EC4Y 8BB or by e-mailing giuseppe.parla@kpmg.co.uk

The Joint Administrators intend to declare and make an interim
distribution to preferential (if any) and unsecured creditors
within two months from November 17, 2014.

The administration proceedings are being conducted in the High
Court of Justice, Chancery Division, Companies Court, No: 9586 of
2011.

MF Global Overseas Limited's principal trading address is:

          5 Churchill Place
          Canary Wharf
          London E14 5HU
          United Kingdom

MF Global Overseas Limited's registered office is:

          8 Salisbury Square
          London EC4Y 8BB
          United Kingdom

The Joint Administrators were appointed on November 2, 2011.
They can be reached at:

          KPMG LLP
          8 Salisbury Square
          London EC4Y 8BB
          United Kingdom


SLATE NO. 1 PLC: Moody's Assigns 'Ba3' Rating to Class E Notes
--------------------------------------------------------------
Moody's Investors Service has assigned definitive long-term
credit ratings to notes and certificates issued by Slate No. 1
plc:

Class X Certificates due April 2017, Definitive Rating Assigned
Aaa (sf)

GBP1931.31 million Class A Mortgage Backed Floating Rate Notes
due January 2051, Definitive Rating Assigned Aaa (sf)

GBP202.668 million Class B Mortgage Backed Floating Rate Notes
due January 2051, Definitive Rating Assigned Aa1 (sf)

GBP101.334 million Class C Mortgage Backed Floating Rate Notes
due January 2051, Definitive Rating Assigned A2 (sf)

GBP41.726 million Class D Mortgage Backed Floating Rate Notes
due January 2051, Definitive Rating Assigned Baa3 (sf)

GBP47.686 million Class E Mortgage Backed Floating Rate Notes
due January 2051, Definitive Rating Assigned Ba3 (sf)

Class Y Certificates were not rated by Moody's.

Class F Mortgage Backed Floating Rate Notes were not rated by
Moody's.

Class Z Certificates were not rated by Moody's.

* Class X Certificates are an interest-only strip paying a fixed
  schedule of interest payments over the first 10 interest
  payment dates. The payments under the Class X Certificates will
  be made pari passu with Class A notes interest.

The portfolio backing this transaction consists of UK prime
residential loans originated by NRAM plc (73.0% of loans),
Bradford & Bingley plc (18.4% of loans), Mortgage Express (6.3%
of loans) and Legal & General Bank Limited (2.3% of loans), all
part of UK Asset Resolution Limited ("UKAR", not rated). On the
closing date UKAR will sell the portfolio to Consilium Airton
Limited (the "Seller", not rated). In turn the Seller will sell
the portfolio to Slate No. 1 plc.

Ratings Rationale

The ratings take into account the credit quality of the
underlying mortgage loan pool, from which Moody's determined the
MILAN Credit Enhancement and the portfolio expected loss, as well
as the transaction structure and legal considerations. The
expected portfolio loss of 1.3% and the MILAN required credit
enhancement of 10% serve as input parameters for Moody's cash
flow model and tranching model, which is based on a probabilistic
lognormal distribution.

Portfolio expected loss of 1.3%: this is marginally higher than
the UK prime sector average and is based on Moody's assessment of
the lifetime loss expectation taking into account: (i) the
originators' weaker historical performance relative to the UK
prime sector, (ii) the current macroeconomic environment in the
UK, (iii) the strong collateral performance to date along with an
average seasoning of 9.5 years; and (iv) benchmarking with
similar UK prime transactions.

MILAN CE of 10%: this is higher than the UK prime sector average
and follows Moody's assessment of the loan-by-loan information
taking into account the historical performance and the following
key drivers: (i) the weighted average current LTV for the pool of
73.5%, which is higher than in recent comparable UK prime
transactions, and (ii) the presence of 59.2% interest-only loans
and 37.5% fast-tracked loans for which proof of income was not
verified at origination.

At closing the mortgage pool balance will consist of GBP2,384
million of loans. The reserve fund will be funded to 1.15% of the
initial mortgage pool balance and will increase to 1.7% of the
initial mortgage pool balance through the accumulation of excess
spread. On and from the interest payment date falling in July
2017, the reserve fund will amortize down to 2.1% of the
outstanding principal amount of the Class A notes, subject to a
minimum of 0.25% of the initial principal amount of the Class A
notes. The transaction also benefits from a liquidity ledger
within the reserve fund equal to 1.25% of the outstanding balance
of the Class A notes that is available only to cover senior
expenses, Class A note interest and payments under the Class X
Certificates. Moody's considers that the reserve fund in this
transaction is weaker than in other comparable UK RMBS
transactions as its amortization is not subject to any
performance triggers.

Operational Risk Analysis: Pepper (UK) Limited ("Pepper", not
rated) will be acting as servicer. In the period running from the
closing date to the portfolio transfer date (the "Interim
Period", which is expected to occur on or before 12 months after
the closing date), Pepper will sub-delegate certain primary
servicing obligations to Bradford & Bingley plc. In order to
mitigate the operational risk, there will be Commercial First
Mortgages Limited (not rated) as back-up servicer facilitator,
Homeloan Management Limited (not rated) as back-up servicer and
Elavon Financial Services Limited (Aa3/P-1) as independent cash
manager from close. To ensure payment continuity over the
transaction's lifetime the transaction documents incorporate
estimation language whereby the cash manager can use the three
most recent servicer reports to determine the cash allocation in
case no servicer report is available. The transaction also
benefits from principal to pay interest.

Interest Rate Risk Analysis: The transaction will be unhedged. In
mitigation the transaction contains a requirement for the
servicer to (i) during the Interim Period keep the current SVR,
or in the event that BBR reduces, not reduce SVR by more than the
change in BBR, (ii) in the first year from the portfolio transfer
date keep unchanged the SVR or, if BBR changes, not change SVR by
more than the change in BBR; and (iii) at semi-annual intervals
thereafter set SVR equal to Libor plus a fixed margin. Due to
uncertainty on enforceability of this covenant, Moody's has taken
the view not to give full credit to this covenant.

Moody's Parameter Sensitivities: If the portfolio expected loss
was increased from 1.3% to 3.9% of current balance, and the MILAN
CE was increased from 10% to 16%, the model output indicates that
the Class A notes would still achieve Aaa(sf) assuming that all
other factors remained equal. Moody's Parameter Sensitivities
quantify the potential rating impact on a structured finance
security from changing certain input parameters used in the
initial rating. The analysis assumes that the deal has not aged
and is not intended to measure how the rating of the security
might change over time, but instead what the initial rating of
the security might have been under different key rating inputs.

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed. The
analysis assumes that the deal has not aged and is not intended
to measure how the rating of the security might migrate over
time, but rather how the initial rating of the security might
have differed if key rating input parameters were varied.
Parameter Sensitivities for the typical EMEA RMBS transaction are
calculated by stressing key variable inputs in Moody's primary
rating model.

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:

Significantly different loss assumptions compared with Moody's
expectations at close due to either a change in economic
conditions from Moody's central scenario forecast or
idiosyncratic performance factors would lead to rating actions.
For instance, should economic conditions be worse than forecast,
the higher defaults and loss severities resulting from a greater
unemployment, worsening household affordability and a weaker
housing market could result in downgrade of the ratings.
Deleveraging of the capital structure or conversely a
deterioration in the notes available credit enhancement could
result in an upgrade or a downgrade of the ratings, respectively.


SLATE NO. 2 PLC: Moody's Assigns 'Ba3' Rating to Class E Notes
--------------------------------------------------------------
Moody's has assigned definitive long-term credit ratings to Notes
and certificates issued by Slate No. 2 plc:

Class X Certificates due April 2017, Definitive Rating Assigned
Aaa(sf)

GBP330,668,000 Class A Mortgage Backed Floating Rate Notes due
October 2044, Definitive Rating Assigned Aaa (sf)

GBP16,330,000 Class B Mortgage Backed Floating Rate Notes due
October 2044, Definitive Rating Assigned Aa1 (sf)

GBP20,413,000 Class C Mortgage Backed Floating Rate Notes due
October 2044, Definitive Rating Assigned Aa3 (sf)

GBP18,372,000 Class D Mortgage Backed Floating Rate Notes due
October 2044, Definitive Rating Assigned Baa2 (sf)

GBP4,082,000 Class E Mortgage Backed Floating Rate Notes due
October 2044, Definitive Rating Assigned Ba3 (sf)

Class Y Certificates were not rated by Moody's.

GBP18,373,000 Class F Mortgage Backed Floating Rate Notes were
not rated by Moody's.

* Class Z Certificates were not rated by Moody's.

* Class X Certificates are an interest-only strip paying a fixed
  schedule of interest payments over the first 10 interest
  payment dates. The payments under the Class X Certificates will
  be made pari passu with Class A notes interest.

The portfolio backing this transaction consists of UK prime
residential loans originally originated by GMAC-RFC Limited (93.4
% of loans) and Kensington Mortgage Company Limited (6.6% of
loans), that were purchased by UK Asset Resolution Limited
("UKAR", not rated). On the closing date UKAR will sell the
portfolio to Consilium Airton Limited (the "Seller", not rated).
In turn the Seller will sell the portfolio to Slate No. 2 plc.

Ratings Rationale

The ratings take into account the credit quality of the
underlying mortgage loan pool, from which Moody's determined the
MILAN Credit Enhancement and the portfolio expected loss, as well
as the transaction structure and legal considerations. The
expected portfolio loss of 1.7% and the MILAN required credit
enhancement of 13% serve as input parameters for Moody's cash
flow model and tranching model, which is based on a probabilistic
lognormal distribution.

Portfolio expected loss of 1.7%: this is marginally higher than
the UK prime sector average and is based on Moody's assessment of
the lifetime loss expectation taking into account: (i) the
originators' weaker historical performance relative to the UK
prime sector, (ii) the current macroeconomic environment in the
UK, (iii) the strong collateral performance to date along with an
average seasoning of 7.6 years; and (iv) benchmarking with
similar UK prime transactions.

MILAN CE of 13%: this is higher than the UK prime sector average
and follows Moody's assessment of the loan-by-loan information
taking into account the historical performance and the following
key drivers: (i) the weighted average current LTV for the pool of
74.6%, which is higher than in recent comparable UK prime
transactions, and (ii) the presence of 60.2% interest-only loans.

At closing the mortgage pool balance will consist of GBP408
million of loans. The reserve fund will be funded to 1.0% of the
initial mortgage pool balance and will increase to 1.7% of the
initial mortgage pool balance through the accumulation of excess
spread. On and from the interest payment date falling in July
2017, the reserve fund will amortize down to 2.1% of the
outstanding principal amount of the Class A notes, subject to a
minimum of 0.25% of the initial principal amount of the Class A
notes. Moody's considers that the reserve fund in this
transaction is weaker than in other comparable UK RMBS
transactions as its amortization is not subject to any
performance triggers.

Operational Risk Analysis: Pepper (UK) Limited ("Pepper", not
rated) will be acting as servicer. In the period running from the
closing date to the portfolio transfer date (the "Interim
Period", which is expected to occur on or before 12 months after
the closing date), Pepper will sub-delegate certain primary
servicing obligations to Bradford & Bingley plc. In order to
mitigate the operational risk, there will be Commercial First
Mortgages Limited (not rated) as back-up servicer facilitator,
Homeloan Management Limited (not rated) as back-up servicer and
Elavon Financial Services Limited (Aa3/P-1) as independent cash
manager from close. To ensure payment continuity over the
transaction's lifetime the transaction documents incorporate
estimation language whereby the cash manager can use the three
most recent servicer reports to determine the cash allocation in
case no servicer report is available. The transaction also
benefits from principal to pay interest.

Interest Rate Risk Analysis: The transaction will be unhedged. In
mitigation the transaction contains a requirement for the
servicer to (i) during the Interim Period keep the current SVR,
or in the event that BBR reduces, not reduce SVR by more than the
change in BBR, (ii) in the first year from the portfolio transfer
date keep unchanged the SVR or, if BBR changes, not change SVR by
more than the change in BBR; and (iii) at semi-annual intervals
thereafter set SVR equal to Libor plus a fixed margin. Due to
uncertainty on enforceability of this covenant, Moody's has taken
the view not to give full credit to this covenant.

Moody's Parameter Sensitivities: If the portfolio expected loss
was increased from 1.7% to 3.4% of current balance, and the MILAN
CE was increased from 13% to 18.2%, the model output indicates
that the Class A notes would still achieve Aaa(sf) assuming that
all other factors remained equal. Moody's Parameter Sensitivities
quantify the potential rating impact on a structured finance
security from changing certain input parameters used in the
initial rating. The analysis assumes that the deal has not aged
and is not intended to measure how the rating of the security
might change over time, but instead what the initial rating of
the security might have been under different key rating inputs.

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed.

The analysis assumes that the deal has not aged and is not
intended to measure how the rating of the security might migrate
over time, but rather how the initial rating of the security
might have differed if key rating input parameters were varied.
Parameter Sensitivities for the typical EMEA RMBS transaction are
calculated by stressing key variable inputs in Moody's primary
rating model.

The principal methodology used in this rating 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:

Significantly different loss assumptions compared with Moody's
expectations at close due to either a change in economic
conditions from Moody's central scenario forecast or
idiosyncratic performance factors would lead to rating actions.
For instance, should economic conditions be worse than forecast,
the higher defaults and loss severities resulting from a greater
unemployment, worsening household affordability and a weaker
housing market could result in downgrade of the ratings.
Deleveraging of the capital structure or conversely a
deterioration in the notes available credit enhancement could
result in an upgrade or a downgrade of the ratings, respectively.


TAURUS 2006-3 PLC: Moody's Cuts Rating on EUR336MM A Notes to Ba3
-----------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of Class A
of Notes issued by TAURUS CMBS (PAN-EUROPE) 2006-3 P.L.C.

Moody's rating action is as follows:

EUR336 million (current outstanding balance of EUR31.4M) A
Notes, Downgraded to Ba3 (sf); previously on Nov 29, 2013
Downgraded to Ba1 (sf)

Moody's does not rate the Class B, Class C, Class D, Class X1 and
the Class X2 Notes.

Ratings Rationale

The downgrade action reflects Moody's concerns regarding (i) the
timeliness of the principal repayment of Class A, given the short
remaining time of six months until the legal final maturity of
the notes, and (ii) the modified pro-rata distribution of the
proceeds before a Note Enforcement Notice is served.

Since its prior action in November 2013, Moody's has not
materially adjusted its recovery estimate on the defaulted
Triumph Loan (EUR49 million -- 100% of the pool). There is also
additional debt in the form of a non-securitized B-note of
EUR12.7 million. In Moody's view, the full recovery of the
securitized loan is essential for the full and timely repayment
of the Class A Notes, because the issuer waterfall will switch
from modified pro-rata to a fully sequential allocation only
after a Note Enforcement Notice is served.

Methodology Underlying the Rating Action:

The principal methodology used in this rating was Moody's
Approach to Rating EMEA CMBS Transactions published in December
2013.

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

Main factors or circumstances that could lead to a downgrade of
the Class A rating are (i) further delays in the sale of the
underlying property, which will increase the probability of non-
payment at the notes legal final maturity on 4 May 2015 and a
subsequent note event of default, and (ii) a sale of the
underlying property at a price such that a loss on the
securitized loan is incurred and the distribution of the
recoveries on a modified pro-rata basis.

An upgrade of the Class A rating is unlikely given the limited
time to the legal final maturity of the notes and the uncertainty
regarding the resolution of a successful sale process during this
limited period and, as such, it is subject to Moody's rating caps
for CMBS transactions in the tail period.

Moody's Portfolio Analysis

Taurus CMBS (Pan-Europe) 2006-3 P.L.C. closed in November 2006
and represents the securitization of initially seven mortgage
loans originated by Merrill Lynch International Bank Limited,
Merrill Lynch Capital Markets Bank Ltd, Merrill Lynch Commercial
Finance Corporation (Merrill Lynch). The loans were secured
directly and indirectly by first-ranking legal mortgages over
initially 29 commercial properties located in Switzerland (70% of
initial underwriter's market value), France (18%) and Germany
(12%). The property use was mainly retail (50%) and office (45%).
Since closing, approximately 89% of the initial pool (six loans)
repaid or prepaid. The proceeds of the loans were applied partly
on a modified pro-rata and partly on a pro-rata basis to the
Notes. Compared with closing, the Class A principal balance
reduced to EUR 31 million from EUR 366 million and its
subordination level increased from 25% to 36%.

The Class A notes could suffer a loss in a scenario where the
last remaining securitized loan (EUR49 million as of August 2014
interest payment date) is worked out with a loss and the
recoveries are distributed on a modified pro-rata basis. However
this is not the current Moody's base case scenario. This exposure
to a portion of the first loss piece on the last remaining
securitized loan is due to weaknesses in the structure of the
transaction, such as (i) a weak sequential trigger; (ii) a
relatively short tail period between the maturity of the last
loan in the pool (January 2013) and the legal final of the notes
(May 2015), especially given the jurisdiction of the loan work-
out, the A/B loan structure and the modified pro-rata allocation
of proceeds of the Triumph loan, and (iii) junior noteholders
remain the Controlling Party throughout the note enforcement
process.

The issuer waterfall will switch to a fully sequential allocation
only after a Note Enforcement Notice is served. The Note Trustee
at its absolute discretion may, and if so requested in writing by
the Eligible Noteholders or by an Extraordinary Resolution of the
holders of the Most Senior Class of Notes, shall give a Note
Enforcement Notice to the Issuer declaring all the notes to be
due and repayable and the Issuer Security enforceable if any of
the Events of Default listed under Condition 10 of the notes
occurs. Events of Default include non-payment of interest and
principal on the Most Senior Class of Notes then outstanding.

The Triumph Loan defaulted at maturity in January 2013 and was
transferred into special servicing. The special servicer has
entered into a series of stand-still agreements with the borrower
and has been marketing the underlying property for sale. The
collateral is a large asset used primarily for retail purposes
and located in Maerkisches Viertel, a mainly residential area in
northern Berlin. The property is comprised of one main shopping
center (c.27,000 sqm) with various attached buildings (office
c.9,500 sqm and residential c.8,800 sqm). The total vacancy rate
is high at 33%, but stable over the last few quarters and mostly
related to the residential component (the overall vacancy was 9%
at closing).

Moody's value of the collateral remains unchanged from Moody's
last review at EUR52 million, which is on as-is-basis and does
not take into account any future potential reletting or re-
positioning of the asset. Moody's loan-to-value ratios are 119%
on the whole loan and 94% on the securitized loan.



                            *********

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

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

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


                            *********


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

Troubled Company Reporter-Europe is a daily newsletter co-
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Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez,
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Copyright 2014.  All rights reserved.  ISSN 1529-2754.

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