TCREUR_Public/141030.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Thursday, October 30, 2014, Vol. 15, No. 215

                            Headlines

B U L G A R I A

CORPORATE COMMERCIAL: Expected Bankruptcy May Be Delayed


F R A N C E

WHA HOLDING: S&P Withdraws Prelim. 'B-' Corporate Credit Rating


G R E E C E

ELETSON HOLDINGS: S&P Revises Outlook to Stable & Affirms 'B' CCR


I R E L A N D

ACUMAN FACILITIES: In Liquidation; Almost 90 Jobs at Risk
ALME LOAN III: Moody's Assigns (P)B2 Rating to Class F Notes
ALME LOAN III: Fitch Assigns 'B-(EXP)sf' Rating to Class F Notes


I T A L Y

* ITALY: Won't Bail Out Banks That Failed ECB Stress Tests


N E T H E R L A N D S

NORTH WESTERLY 2013: Fitch Affirms 'BBsf' Rating on Class E Notes


P O L A N D

BANK GOSPODARKI: Moody's Affirms D Bank Finc'l. Strength Rating


R U S S I A

HOME CREDIT: Fitch Lowers LT Issuer Default Rating to 'BB-'
MECHEL OAO: Possible Bankruptcy Won't Stop Elga Coal Project


S P A I N

SANTANDER EMPRESAS 2: S&P Affirms 'D' Rating on Class F Notes


U N I T E D   K I N G D O M

ARROW GLOBAL: S&P Rates New EUR220MM Sr. Secured Notes 'BB-'
JAGUAR LAND: S&P Rates US$500MM Sr. Unsecured Bond 'BB'
JOHN M HENDERSON: Administrators to Seek Buyer for Business
NUTRAFEED LTD: Wrexham Contract Pushed Firm into Administration
POLDARK TIN MINE: Saved From Administration


                            *********


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


CORPORATE COMMERCIAL: Expected Bankruptcy May Be Delayed
--------------------------------------------------------
Standart News reports that the expected bankruptcy of Bulgaria's
troubled Corpbank may be delayed due to the idea that the bank
still may be saved by the new parliament.

The idea is to increase by at least month the period in which the
Bulgarian National Bank is obliged to revoke the license of the
troubled lender, Standart News says.

According to Standart News, Patriotic Front's Valeri Simeonov
stated the idea was discussed by the participants of the multi-
party leadership meeting of the seven parties in the National
Assembly, excluding Ataka.

It is likely that the proposal will be discussed on Oct. 31 in
the National Assembly, Standart News notes.  It is expected that
that the committees on Legal Affairs and Budget and Finance will
be created today, Oct. 30, which then will produce a report on
CCB on Oct. 31, Standart News says.  The Bulgarian National Bank
will also present its analysis of the case, Standart News states.

               About Corporate Commercial Bank AD

Corporate Commercial Bank AD is the fourth largest bank in
Bulgaria in terms of assets, third in terms of net profit, and
first in terms of deposit growth.

Bulgaria's central bank placed Corpbank under its administration
and suspended shareholders' rights in June 2014 after a run
drained the bank of cash to meet client demands.



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


WHA HOLDING: S&P Withdraws Prelim. 'B-' Corporate Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its preliminary 'B-'
long-term corporate credit rating on France-based steel abrasives
producer WHA Holding SAS (Winoa).  S&P also withdrew its
preliminary 'B-' issue rating and '4' recovery rating on the
company's proposed senior secured notes, and the preliminary 'B'
issue rating and '2' recovery rating on the proposed super senior
revolving credit facility.

At the time of the withdrawal, the outlook was stable.

S&P assigned the preliminary ratings on July 16, 2014, based on
Winoa's debt refinancing plans through its proposed EUR260
million senior secured notes.



===========
G R E E C E
===========


ELETSON HOLDINGS: S&P Revises Outlook to Stable & Affirms 'B' CCR
-----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Liberia-registered product tanker and liquefied petroleum gas
(LPG) carrier owner and operator Eletson Holdings Inc. to stable
from positive.  At the same time, S&P affirmed its 'B' long-term
corporate credit rating on the company and its 'B' issue rating
on its US$300 million first-preferred ship mortgage notes.

The outlook revision reflects S&P's expectation that Eletson's
earnings will not improve as much as S&P expected on account of
lower-than-anticipated product tanker charter rates that S&P
thinks will persist in the remainder of 2014 and in 2015.
Combined with the company's accelerated spending on new vessels,
the lower-than-expected earnings will likely lead to credit
metrics that would not be consistent with a higher rating.
Constrained EBITDA also weighs on the company's liquidity
position; however, S&P understands that Eletson's management is
taking timely proactive measures to bolster its liquidity
sources.

In the first six months of 2014, Eletson's reported EBITDA (pro
forma the proportionate consolidation of Eletson Gas) rose to
about US$54 million from roughly US$38 million year-on-year,
while its EBITDA from the tanker business improved to only about
US$28 million from approximately US$25 million year-on-year.
Given the persistent weak charter tanker rates in the second half
of this year, S&P has revised its 2014 EBITDA forecast for
Eletson's tanker business downward to about US$60 million from
S&P's original forecast of roughly US$70 million.  S&P also
revised downward its EBITDA projection for Eletson's tanker
business in 2015 to about US$70 million given the lower 2014
EBITDA base and the slower pace of improvement in product tanker
rates in general, as S&P forecasts in its base case.  S&P thinks
the weaker-than-expected earnings and ensuing lower cash flow
generation, combined with higher debt on this year's investment
in new tonnage beyond the gas carriers currently on order, will
prevent Eletson from achieving a ratio of funds from operations
(FFO) to debt of more than 12%, which would have been
commensurate with a higher rating.

The ratings continue to be constrained by S&P's "weak" business
risk assessment on Eletson.  S&P incorporates its view of the
shipping industry's "high" risk, which S&P believes, stems from
the industry's capital intensity, high fragmentation, frequent
imbalances between demand and supply, lack of meaningful supply
discipline, and volatility in charter rates.  Key considerations
in S&P's assessment of the company's competitive position as
"weak" are its high spot market exposure, albeit likely to
decline, and "high" volatility of profitability.  These
weaknesses are mitigated by Eletson's position as a large
independent operator in the product tanker industry, its
successful efforts and further strategic actions to diversify
into the attractive gas shipping segment, its strong reputation
as a quality operator, and the company's long track record of
commercial outperformance against industry benchmarks.

S&P's assessment of Eletson's financial risk as "highly
leveraged" continues to reflect the company's high debt and S&P's
expectation of high volatility for cash flow and leverage ratios
from peak to trough.  Nevertheless, S&P believes that Eletson's
credit metrics could continue to improve over the next few years,
assuming a likely recovery in charter rates and an increasing
contribution from the expanding gas carrier fleet up until early
2017.

In S&P's base-case, it assumes:

   -- A muted economic outlook, with a modest improvement to 1.0%
      growth in eurozone (European Economic and Monetary Union)
      GDP this year and a further advance to 1.5% in 2015 (after
      a 0.4% contraction in 2013).  S&P expects that other key
      contributors to trade flows--the U.S. and Asia-Pacific--
      will witness sustained or stronger growth rates, at 2.2%
      and 5.3%, respectively, in 2014, and 3.0% and 5.4% in 2015
     (from 2.2% and 5.5% in 2013).

   -- Revenues (for 360 operating days per year) in line with
      contracted vessels' daily rates provided by Eletson and for
      spot vessels, according to S&P's forecast time-charter
      rates.

   -- An increase in time-charter equivalent (TCE) rates for
      product tankers to an average of US$15,000-US$16,000 per
      day in 2014 and US$16,500-US$17,000 per day in 2015, from
      the US$13,800-US$15,100 per day Eletson earned in 2013.

   -- TCE rates for gas carriers to amount to an average of
      US$30,000-US$32,000 per day in 2014-2015.

   -- Capital expenditures of US$440 million-US$450 million in
      2014-2016, largely related to Eletson Gas' order of 10 new
      gas carriers to be delivered by early 2017 and the three
      product tankers acquired in the first and second quarters
      of this year for US$66.3 million.  S&P understands that
      joint venture partner Blackstone Group will contribute a
      total of US$125 million in cash (including about US$60
      million contributed as of June 30, 2014) to fully fund the
      equity payments for the gas carriers on order, while
      Eletson Gas will fund the remainder with debt.

   -- Only maintenance capital expenditures (dry-docking, special
      surveys and overhaul works) at Eletson Holdings level, but
      no committed capital expenditures for new vessels.
      Assuming US$1 million per vessel and each vessel due for
      overhaul every three years, this should represent about
      US$7 million-US$8 million annually.

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

   -- A weighted average ratio of Standard & Poor's-adjusted FFO
      to debt of about 7.0%-9.0% in 2014-2015, up from 6.7% in
      2013.

   -- A weighted average ratio of adjusted FFO cash interest
      coverage of 2.0x-2.5x in 2014-2015, down from 3.7x in 2013.

The stable outlook reflects S&P's expectation that Eletson will
proactively manage its liquidity while generating sufficient
operating cash flows to achieve credit metrics that are
commensurate with the current rating.  This should be supported
by the company's gradually expanding gas shipping operations.
Furthermore, given the inherent volatility of the sector in which
Eletson operates and associated swings in earnings and cash
flows, S&P considers that maintaining liquidity coverage at least
close to 1.2x is a critical and stabilizing rating factor.

S&P would likely lower the rating--possibly by more than one
notch--if it concluded that Eletson was unexpectedly unable to
boost its liquidity sources and restore its liquidity coverage in
the next one to two months.  S&P might also consider lowering the
rating if it saw clear signs that credit ratios were performing
below its base-case expectations, such as FFO interest coverage
falling below 1.5x.

S&P could raise the rating if Eletson delivered sustained EBITDA
growth, pursued a balanced investment strategy, managed to reduce
its leverage, and improved its credit ratios to the level that
S&P considers commensurate with the higher rating, such as a
ratio of adjusted FFO to debt of more than 12% on a sustainable
basis.



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


ACUMAN FACILITIES: In Liquidation; Almost 90 Jobs at Risk
---------------------------------------------------------
Claire Weir at Belfast Telegraph reports that Acuman Facilities
Management, a subsidiary of historic Belfast building firm H&J
Martin, has been liquidated in the Republic of Ireland with the
loss of almost 90 jobs.

H&J Martin, which was founded in 1840, said it had invested in
the company during the economic downturn and restructured senior
management, Belfast Telegraph relates.

But the directors had decided to appoint a liquidator because
Acuman was "unsustainable and unable to continue trading",
Belfast Telegraph discloses.

Tom Kavanagh of Deloitte is the liquidator, Belfast Telegraph
relays.

Derek Martin, joint managing director of H&J Martin, as cited by
Belfast Telegraph, said: "The appointment of a liquidator to
Acuman Facilities Management is regrettably unavoidable given the
collapse of the business's finances in recent years."

"Despite significant investment of over EUR2 million (GBP1.6
million) in the business by its parent company and a recent
restructuring of its senior management, the business is simply
not economically viable."

Acuman Facilities Management, based in Swords, Co Dublin, was
established in 1997 before being acquired in 2009 by the H&J
Martin Group.


ALME LOAN III: Moody's Assigns (P)B2 Rating to Class F Notes
------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by ALME Loan
Funding III Limited:

EUR233,700,000 Class A-1 Senior Secured Floating Rate Notes due
2028, Assigned (P)Aaa (sf)

EUR5,300,000 A-2 Senior Secured Fixed Rate Notes due 2028,
Assigned (P)Aaa (sf)

EUR26,400,000 Class B-1 Senior Secured Floating Rate Notes due
2028, Assigned (P)Aa2 (sf)

EUR17,100,000 Class B-2 Senior Secured Fixed Rate Notes due
2028, Assigned (P)Aa2 (sf)

EUR24,000,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2028, Assigned (P)A2 (sf)

EUR23,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2028, Assigned (P)Baa3 (sf)

EUR27,750,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2028, Assigned (P)Ba2 (sf)

EUR11,000,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2028, Assigned (P)B2 (sf)

Moody's issues provisional ratings in advance of the final sale
of financial instruments, but these ratings only represent
Moody's preliminary credit opinions. Upon a conclusive review of
a transaction and associated documentation, Moody's will endeavor
to assign definitive ratings. A definitive rating (if any) may
differ from a provisional rating.

Ratings Rationale

Moody's provisional rating of the rated notes addresses the
expected loss posed to noteholders by the legal final maturity of
the notes in 2028. The provisional ratings reflect the risks due
to defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure. Furthermore, Moody's
is of the opinion that the collateral manager, Apollo Management
International LLP ("Apollo"), has sufficient experience and
operational capacity and is capable of managing this CLO.

ALME III CLO is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured loans and senior secured
bonds and up to 10% of the portfolio may consist of unsecured
senior loans, second-lien loans, mezzanine obligations and high
yield bonds. The portfolio is expected to be 65% ramped up as of
the closing date and to be comprised predominantly of corporate
loans to obligors domiciled in Western Europe.

Apollo will manage the CLO. It will direct the selection,
acquisition and disposition of collateral on behalf of the Issuer
and may engage in trading activity, including discretionary
trading, during the transaction's four-year reinvestment period.
Thereafter, purchases are permitted using principal proceeds from
unscheduled principal payments and proceeds from sales of credit
risk and credit improved obligations, and are subject to certain
restrictions.

In addition to the eight classes of notes rated by Moody's, the
Issuer will issue EUR42.850m of subordinated notes which will not
be rated.

The transaction incorporates interest and par coverage tests
which, if triggered, divert interest and principal proceeds to
pay down the notes in order of seniority.

Loss and Cash Flow Analysis:

Moody's modelled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published in
February 2014. The cash flow model evaluates all default
scenarios that are then weighted considering the probabilities of
the binomial distribution assumed for the portfolio default rate.
In each default scenario, the corresponding loss for each class
of notes is calculated given the incoming cash flows from the
assets and the outgoing payments to third parties and
noteholders. Therefore, the expected loss or EL for each tranche
is the sum product of (i) the probability of occurrence of each
default scenario and (ii) the loss derived from the cash flow
model in each default scenario for each tranche. As such, Moody's
encompasses the assessment of stressed scenarios.

Moody's used the following base-case modeling assumptions:

Par amount: EUR 400,000,000

Diversity Score: 34

Weighted Average Rating Factor (WARF): 2800

Weighted Average Spread (WAS): 3.80%

Weighted Average Recovery Rate (WARR): 42.00%

Weighted Average Life (WAL): 8 years.

As part of the base case, Moody's has addressed the potential
exposure to obligors domiciled in countries with foreign currency
government bond rating of A3 or below. Following the effective
date, and given the portfolio constraints and the current
sovereign ratings in Europe, such exposure may not exceed 10% of
the total portfolio, where exposures to countries rated below
Baa3 cannot exceed 5%. As a result and in conjunction with the
current foreign government bond ratings of the eligible
countries, as a worst case scenario, a maximum 5% of the pool
would be domiciled in countries with single "A" local currency
country ceiling and 5% in Baa2 local currency country ceiling.
The remainder of the pool will be domiciled in countries which
currently have a local currency country ceiling of Aaa. Given
this portfolio composition, the model was run with different
target par amounts depending on the target rating of each class
of notes as further described in the rating methodology. The
portfolio haircuts are a function of the exposure size to
peripheral countries and the target ratings of the rated notes
and amount to 0.75% for the class A notes, 0.50% for the Class B
notes, 0.375% for the Class C notes and 0% for Classes D, E and
F.

Stress Scenarios:

Together with the set of modelling assumptions above, Moody's
conducted additional sensitivity analysis, which was an important
component in determining the provisional rating assigned to the
rated notes. This sensitivity analysis includes increased default
probability relative to the base case. Below is a summary of the
impact of an increase in default probability (expressed in terms
of WARF level) on each of the rated notes (shown in terms of the
number of notch difference versus the current model output,
whereby a negative difference corresponds to higher expected
losses), holding all other factors equal:

Percentage Change in WARF: WARF + 15% (to 3220 from 2800)

Ratings Impact in Rating Notches:

Class A-1 Senior Secured Floating Rate Notes: 0

Class A-2 Senior Secured Fixed Rate Notes: 0

Class B-1 Senior Secured Floating Rate Notes: -1

Class B-2 Senior Secured Fixed Rate Notes: -2

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -1

Class E Senior Secured Deferrable Floating Rate Notes: -1

Class F Senior Secured Deferrable Floating Rate Notes: -1

Percentage Change in WARF: WARF +30% (to 3640 from 2800)

Class A-1 Senior Secured Floating Rate Notes: -1

Class A-2 Senior Secured Fixed Rate Notes: -1

Class B-1 Senior Secured Floating Rate Notes: -3

Class B-2 Senior Secured Fixed Rate Notes: -3

Class C Senior Secured Deferrable Floating Rate Notes: -4

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -2

Class F Senior Secured Deferrable Floating Rate Notes: -3

Methodology Underlying the Rating Action:

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

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

The rated notes' performance is subject to uncertainty. The
notes' performance is sensitive to the performance of the
underlying portfolio, which in turn depends on economic and
credit conditions that may change. Apollo's investment decisions
and management of the transaction will also affect the notes'
performance.


ALME LOAN III: Fitch Assigns 'B-(EXP)sf' Rating to Class F Notes
----------------------------------------------------------------
Fitch Ratings has assigned ALME Loan Funding III Limited's notes
expected ratings:

Class A-1: 'AAA(EXP)sf'; Outlook Stable
Class A-2: 'AAA(EXP)sf'; Outlook Stable
Class B-1: 'AA+(EXP)sf'; Outlook Stable
Class B-2: 'AA+(EXP)sf'; Outlook Stable
Class C: 'A+(EXP)sf'; Outlook Stable
Class D: 'BBB+(EXP)sf'; Outlook Stable
Class E: 'BB(EXP)sf'; Outlook Stable
Class F: 'B-(EXP)sf'; Outlook Stable

Subordinated notes: not rated

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

ALME Loan Funding III Limited is an arbitrage cash flow
collateralized loan obligation (CLO).

KEY RATING DRIVERS

Portfolio Credit Quality

Fitch expects the average credit quality of obligors to be in the
'B' to 'B-' range.  Fitch has public ratings or credit opinions
on all 69 obligors in the identified portfolio.  The WARF of the
identified portfolio, which represents 65.7% of the target par
amount, is 34.20.

High Expected Recoveries

At least 90% of the portfolio will comprise senior secured
obligations.  Recovery prospects for these assets are typically
more favorable than for second-lien, unsecured and mezzanine
assets.  Fitch has assigned Recovery Ratings all 77 obligations
in the identified portfolio.  The WARR of the identified
portfolio is 70.81%.

Limited INTEREST RATE Risk

INTEREST RATE risk is naturally hedged for most of the portfolio,
as floating rate liabilities and assets represent 6% and between
0% and 7% of the target par amount respectively.  As a portion of
the fixed notes are junior in the transaction's structure, the
proportion of fixed-rate liabilities will increase as the class A
notes amortize.  Fitch therefore modelled a 7% and a 0% fixed-
rate bucket in its analysis and the rated notes can withstand the
interest rate mismatch associated with both scenarios.

Limited FX Risk

Perfect asset swaps are used to mitigate any currency risk on
non-euro-denominated assets.  The transaction is permitted to
invest up to 30% of the portfolio in non-euro-denominated assets,
provided suitable asset swaps can be entered into.

TRANSACTION SUMMARY

Net proceeds from the notes will be used to purchase a EUR400m
portfolio of mostly Euro denominated leveraged loans and bonds.
The transaction features a four-year reinvestment period and the
portfolio of assets will be managed by Apollo Management
International LLP.

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

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

RATING SENSITIVITIES

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



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I T A L Y
=========


* ITALY: Won't Bail Out Banks That Failed ECB Stress Tests
----------------------------------------------------------
James Politi at The Financial Times reports that Matteo Renzi,
the Italian prime minister, defended his country's banking system
after it emerged with the greatest vulnerabilities from health
checks run by the European Central Bank, saying it has "strength"
and "solidity" despite the problems that were exposed.

In his first remarks since four Italian banks -- including Monte
dei Paschi di Siena, the country's third largest lender -- were
found by the ECB to have net capital shortfalls, Mr. Renzi struck
an upbeat tone about the nation's financial institutions, the FT
discloses.

Mr. Renzi praised the Bank of Italy for having done "great work"
and said the government was "prepared to do anything to make
Italy's economic system function", the FT relays.

The remarks by the 39-year old former mayor of Florence came
after Italian officials said they have no plans to use public
money to prop up the banks that failed ECB tests, expressing
confidence that any holes can be plugged through "market
solutions," the FT notes.

But from the Bank of Italy to the Renzi government, the response
has been to emphasize that there is little evidence of a systemic
weakness in the Italian banking system -- and no need for public
intervention, the FT states.

In the wake of the stress test results, Italy's finance ministry
issued a statement saying Pier Carlo Padoan, the minister, was
"confident that the residual shortfalls will be covered through
further market transactions" that would be "easily completed",
according to the FT.

Fabrizio Viola, chief executive of MPS, told Il Sole 24 ore, the
Italian financial daily newspaper, that he "excludes in a
categorical way" the need for another government bailout at the
ailing Tuscan bank, which already received EUR4 billion in public
aid in recent years, paying back EUR3 billion, and is now
considering a sale, the FT relates.



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


NORTH WESTERLY 2013: Fitch Affirms 'BBsf' Rating on Class E Notes
-----------------------------------------------------------------
Fitch Ratings has affirmed North Westerly CLO IV 2013 B.V., as:

EUR161 million Class A-1: affirmed at 'AAAsf'; Outlook Stable
EUR16 million Class A-2: affirmed at 'AAAsf'; Outlook Stable
EUR27 million Class B-1: affirmed at 'AAsf'; Outlook Stable
EUR10 million Class B-2: affirmed at 'AAsf'; Outlook Stable
EUR17.5 million Class C: affirmed at 'Asf'; Outlook Stable
EUR16 million Class D: affirmed at 'BBBsf'; Outlook Stable
EUR21 million Class E: affirmed at 'BBsf'; Outlook Stable
EUR37.5 million subordinated notes: not rated

North Westerly CLO IV 2013 B.V. is an arbitrage cash flow
collateralized loan obligation (CLO).  Net proceeds from the
issuance of the notes were used to purchase a EUR300m portfolio
of European and US leveraged loans and bonds.  The portfolio is
managed by NIBC Bank NV.

KEY RATING DRIVERS

The affirmation reflects the transaction's performance, which is
in line with Fitch's expectations.

The deal went effective on March 27, 2014.  As of Sept. the
transaction has built par and total assets exceed the target par
of EUR300m by EUR336,270.  The transaction's reinvestment period
ends on Jan. 15, 2018.

The portfolio currently consists of senior secured assets and
there are no defaulted or 'CCC' rated assets.  The three largest
country exposures are to Germany (33.5%), Netherlands (25.2%) and
France (14.9%).  This means 58.7% of the transaction is exposed
to two countries, Germany and Netherlands.  The three largest
industry exposures are to healthcare (13.7%), general retail
(10.4%) and business services (10%).  The top three obligors
account for 7.2% of the transaction.

All collateral profile tests are passing, the
overcollateralization tests are passing with comfortable cushions
and interest coverage tests are also passing.

RATING SENSITIVITIES

Fitch has incorporated two stress tests to simulate the ratings'
sensitivity to changes in the underlying assumptions.  A 25%
increase in the expected obligor default probability would lead
to a downgrade of one to two notches for the rated notes.  A 25%
reduction in the expected recovery rates would lead to a
downgrade of one to four notches for the rated notes.



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


BANK GOSPODARKI: Moody's Affirms D Bank Finc'l. Strength Rating
---------------------------------------------------------------
Moody's Investors Service has affirmed Bank Gospodarki
Zywnosciowej S.A.'s (BGZ) long and short-term deposit ratings of
Baa3/Prime-3, following the recent transfer of ownership of the
bank to BNP Paribas (BNPP; A1 negative; C- negative/baa1) from
Rabobank Nederland (Rabobank; Aa2 negative; B- negative/a1).

Moody's also affirmed the bank's standalone bank financial
strength rating (BFSR) of D, which is equivalent to a baseline
credit assessment (BCA) of ba2, given the rating agency's
expectation that BGZ's financial performance will remain
commensurate with the current rating level over the next 12-18
months. The outlook remains stable on all long-term ratings and
the BFSR.

Ratings Rationale

Deposit Ratings Affirmed

BNPP now holds close to 90% of BGZ's shares, while Rabobank
retains a minority stake for the time being. The new parent's
commitment to developing the Polish business is reflected in (1)
the French bank taking over responsibility for the majority of
the existing funding lines provided by the former parent; and (2)
the intention to merge BGZ with its other Polish subsidiary BNPP
Polska S.A. in the course of 2015 (subject to regulatory
approval).

Therefore, Moody's continues to maintain a high expectation of
parental support, leading to a two-notch uplift in the bank's
Baa3 long-term deposit ratings, which is comparable to other
foreign-owned peers in the Central and Eastern European region.

BFSR Affirmed

Moody's has also affirmed the bank's BFSR of D, which is
equivalent to a BCA of ba2, with a stable outlook, in light of
the anticipated financial performance of BGZ at a level
commensurate with the current ratings. Nevertheless, the rating
agency also says that BGZ's profitability could come under some
pressure because of the recent interest rates cut by the National
Bank of Poland.

BGZ remains a market leader in the food and agriculture sector,
with a dominant market share in terms of loans of 29% in H1 2014,
with smaller co-operative banks controlling most of the remaining
share. BGZ also continues to be predominantly self-funded, with a
loan-to-deposit ratio of around 107% in H1 2014, in line with the
system average.

BGZ's loan book is granular with an overall problem loans ratio
of 7% in H1 2014, slightly better than the 7.5% Polish market
average; however, Moody's notes that its exposure to the cyclical
agribusiness segment represents a sector concentration risk. The
bank's capitalization and risk-absorption buffers are adequate,
with a capital adequacy ratio of 14% and a leverage ratio of 10%
(equity/total assets) in H1 2014, and comparable to those of
similarly rated peers. Nevertheless, Moody's views BGZ's internal
capital creation capacity as modest, driven by relatively weak
profitability, with an annualized return on assets of 0.6% in H1
2014. This is mostly due to the bank's weak, albeit improving,
efficiency, indicated by the cost to income ratio of
approximately 67% in H1 2014.

In addition, BNPP has announced its plan to merge BGZ with its
other subsidiary in Poland, BNPP Polska S.A. (with estimated 1.5%
market share in terms of assets), conditional on regulatory
approval. The merger is expected to benefit BGZ, particularly in
terms of improved competitive position and expanded branch
network.

What Could Change The Rating -- Up/Down

Upward pressure on BGZ's BCA would require a significant
strengthening of the bank's franchise, as well as a sustainable
improvement in its overall financial metrics including
profitability, efficiency and capitalization, in line with
higher-rated peers.

BGZ's BCA could come under downward pressure if the bank's credit
profile worsens, in particular in terms of asset quality,
capitalization, and profitability. Moody's would also view
negatively a material erosion of BGZ's competitive position in
the agricultural segment. In addition, negative pressure could
arise if there are any adverse changes to Moody's assumptions of
parental support, or if BNPP's standalone financial strength
weakens significantly.

Principal Methodology

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



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


HOME CREDIT: Fitch Lowers LT Issuer Default Rating to 'BB-'
-----------------------------------------------------------
Fitch Ratings has downgraded the Long-term Issuer Default Ratings
(IDRs) of Russia-based Home Credit & Finance Bank (HCFB) to 'BB-'
from 'BB', and Russian Standard Bank (RSB) and Orient Express
Bank (OEB) to 'B' from 'B+'.  The Outlooks are Negative.  Fitch
has also affirmed the Long-term IDRs of OTP Bank Russia (OTPR) at
'BB', and Tinkoff Credit Systems (TCS) and Sovcombank (SCB) at
'B+', all with Stable Outlooks.

Fitch has also published a new special report, 'Peer Report:
Russian Consumer Finance Banks.  Credit Losses Up, Weakening
Macro May Intensify Pressure', in which it comments on the
rationale for the negative outlook on the Russian consumer
finance sector and provides detailed analysis of the relative
credit metrics of the banks covered in this commentary.

KEY RATING DRIVERS - IDRS, VIABILITY RATINGS (VRS) AND NATIONAL
RATINGS

The rating actions on the six banks reflect their relative
resilience to increased credit losses and weaker profitability in
the Russian consumer finance market.  The deterioration in sector
performance is driven by higher borrower leverage, seasoning loan
books, market saturation, greater regulatory scrutiny and weak
loan growth prospects.

The downgrades of HCFB, OEB and RSB reflect bottom-line losses
which are higher than at peers, as well as pressure on regulatory
capital at OEB and, in particular, RSB.  The Negative Outlooks on
these three banks reflect the potential for asset quality and
performance to remain weak, given the slowdown in the Russian
economy, further eroding capital.  However, HCFB's currently
solid capital, high margins, broad deposit base and longer track
record of managing through cycles in the consumer finance sector
at present support its VR at a higher level than its peers.

The affirmation of TCS and SCB reflect their positive bottom-line
results to date, driven by significantly less severe asset
quality deterioration (SCB) and higher loan yields (TCS).  The
Stable Outlooks on the two banks, and their higher ratings
relative to OEB and RSB, reflects Fitch's view that they should
be able to contain credit losses at levels that allow them to
remain profitable, or at least avoid significant erosion of
capital. TCS's ratings are also supported by high capital ratios.
The two banks are currently rated one notch lower than HCFB due
to their more limited track records, greater dependence on
wholesale funding (TCS) and significant market risk resulting
from a large fixed income portfolio (SCB).

The affirmation of OTPR's Long-term IDR at 'BB' reflects
potential support from its owner, Hungarian OTP Bank Plc (OTPH).
The affirmation of the bank's VR at 'b+', in line with TCS and
SCB, reflects its strong IFRS capital position and manageable
loan impairment to date, as a result of which the bank has so far
avoided significant bottom-line losses and capital erosion.

In 1H14, the average credit losses of the six banks (defined as
loans 90 days overdue originated in the period divided by average
performing loans) were a high 20% (annualized), up from 8% in
2012 and 15% in 2013.  OEB's and HCFB's credit losses were the
highest in the peer group in 1H14, at 24.6% and 23.5%,
respectively.  Asset quality continues to deteriorate as
portfolios season in a weaker economy, although recent vintages
at most banks show tentative signs of stabilization.

As a result of asset quality pressure, four of the six banks were
loss-making in 1H14 (the exceptions being TCS and SCB), and
performance is unlikely to recover in 2H14.  Banks are unable to
pass the heightened cost of risk on to borrowers by increasing
rates, mainly because of prohibitive risk-weights on high-yield
consumer finance loans introduced in 2013.  Credit losses
significantly exceeded break-even levels in 1H14 at HCFB (by 7%,
on an annualized basis), OEB (6.3%) and RSB (4.9%), justifying
the downgrades and Negative Outlooks on these banks.  Fitch
expects further loan yield moderation, coupled with slightly
higher funding costs and lower non-interest revenues (at those
banks which book insurance commissions up front, at loan
issuance) to weigh moderately on pre-impairment profit.

Losses at some banks, combined with higher risk-weights, have
reduced banks' capital cushions.  Fitch considers capital to be a
relative rating strength for TCS (in particular) and HCFB, as
both regulatory and IFRS capital ratios offer significant loss
absorption capacity.  Solvency is weakest at RSB as a result of
capital withdrawals made by its shareholder to finance his non-
banking business.  RSB's Fitch Core Capital (FCC) ratio reached a
low 4.4% at end-1H14, as Fitch deducts from equity the bank's
investments in one of its holding companies (Fitch treats this as
a dividend payment in substance) and other minor items.  However,
this ratio would have been somewhat higher at 6.6% if the bank
reduced its on-balance-sheet reserve coverage of non-performing
loans down to 100% from the current 123% at end-1H14.  Positively
for all the banks, their fast loan turnover and therefore
reasonable deleveraging capacity may help ease capital pressure
in case of a deep stress.

Funding and liquidity profiles are generally healthy, supported
by reasonable deposit collection capacity and strong cash
generation of loan books.  TCS and RSB have more significant
wholesale funding dependence than peers, with near-term
maturities over 12 months (including put options) equal to 21%
and 12% of end-3Q14 liabilities, respectively.  However, these
are already reasonably covered by liquid assets.  Deposits at the
six banks have been stable to date, but are fairly price-
sensitive.

KEY RATING DRIVERS - SUPPORT RATINGS AND SUPPORT RATING FLOORS

OTPR's IDRs and Support Rating of '3' are driven by potential
support from OTPH, in case of need.  Fitch believes that the
parent would have a high propensity to support OTPR in light of
its majority ownership, the strong commitment of OTPH to its
Russian subsidiary to date and the significant importance of OTPR
for the group as a whole (accounting for about 8% of consolidated
assets).  The Stable Outlook on OTPR reflects Fitch's base case
that OTPH should be able to avoid further capital erosion as the
group's sizable pre-impairment profit should be sufficient to
absorb further credit losses in Hungary, Ukraine and Russia.

The '5' Support Ratings of HCFB, RSB, SCB, TCS and OEB reflect
Fitch's view that support from the banks' private shareholders
cannot be relied upon.  The Support Ratings and Support Rating
Floors of 'No Floor' also reflect the fact that support from the
Russian authorities, although possible given the banks' increased
deposit franchises, can also not be relied upon due to the banks'
still small size and lack of overall systemic importance.
Accordingly, the banks' IDRs are based on their intrinsic
financial strength, as reflected by their VRs.

RATINGS SENSITIVITIES - ALL BANKS' IDRS, VRS AND NATIONAL RATINGS

The banks' ratings are sensitive primarily to trends in asset
quality, profitability and capitalization.  If HCFB, OEB and RSB
achieve little improvement in asset quality, resulting in
continued bottom line losses and further capital erosion, the
banks could be downgraded.  Conversely, an improvement in
performance could help to stabilize the ratings of the three
banks at their current levels.

The ratings of TCB and SCB and the VR of OTPH, would be more
resilient to a further deterioration of asset quality, given
their profitability to date and/or solid capitalization.
However, a sharp increase in credit losses and marked weakening
of solvency could result in negative rating action.

OTPR's IDRs could be downgraded in case of a significant
weakening of its credit profile.  In particular, if the
conversion of Hungarian banks' foreign currency mortgage loans
into forints takes place at below market exchange rates (not
Fitch's base case), this may result in a marked deterioration of
OTPH's capitalization and hence a downgrade of OTPR's IDRs.

KEY RATING DRIVERS AND SENSITIVITIES - ALL BANKS' SENIOR
UNSECURED AND SUBORDINATED DEBT

The banks' senior unsecured debt is rated in line with their
Long-term IDRs and National Ratings (for domestic debt issues),
reflecting Fitch's view of average recovery prospects, in case of
default.  The subordinated debt ratings of HCFB, RSB and TCS are
notched once off their VRs (the banks' VRs are in line with their
IDRs) in line with Fitch's criteria for rating these instruments.

Any changes to the banks' Long-term IDRs and National Ratings
would be likely to impact the ratings of both senior unsecured
and subordinated debt.  Debt ratings could also be downgraded in
case of a further marked increase in the proportion of retail
deposits in the banks' liabilities, resulting in greater
subordination of bondholders.  In accordance with Russian
legislation, retail depositors rank above those of other senior
unsecured creditors.

The rating actions are:

HCFB:

Long-term foreign and local currency IDRs: downgraded to 'BB-'
from 'BB'; Outlooks Negative
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: downgraded to 'bb-' from 'bb'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
Senior unsecured debt: downgraded to 'BB-' from 'BB'
Subordinated debt (issued by Eurasia Capital SA) Long-term
rating: downgraded to 'B+' from 'BB-'

RSB:

Long-term foreign and local currency IDRs: downgraded to 'B'
from 'B+'; Outlooks Negative
National Long-term Rating: downgraded to 'BBB-(rus)' from
'A-(rus)'; Outlook Negative
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: downgraded to 'b' from 'b+'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
Senior unsecured debt (including that issued by Russian Standard
Finance SA) Long-term rating: downgraded to 'B' from 'B+';
Recovery Rating 'RR4'
Subordinated debt (issued by Russian Standard Finance SA) Long-
term rating: downgraded to 'B-' from 'B'; Recovery Rating 'RR5'

OEB

Long-term foreign and local currency IDRs: downgraded to 'B' from
'B+'; Outlooks Negative
National Long-term Rating: downgraded to 'BBB(rus)' from 'A-
(rus)'; Outlook Negative
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: downgraded to 'b' from 'b+'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
Senior unsecured debt Long-term rating: downgraded to 'B' from
'B+'; Recovery Rating 'RR4'
Senior unsecured debt National Long-term Rating: downgraded to
'BBB(rus)' from 'A-(rus)'

OTPR

Long-term foreign and local currency IDRs: affirmed at 'BB',
Outlooks Stable
National Long-Term Rating: affirmed at 'AA-(rus)', Outlook Stable
Short-Term Foreign Currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'b+'
Support Rating: affirmed at '3'
Senior unsecured debt Long-term rating: affirmed at 'BB'
Senior unsecured debt National Long-term Rating: affirmed at 'AA-
(rus)'

TCS

Long-term foreign and local currency IDRs: affirmed at 'B+';
Outlooks Stable
Short-term foreign currency IDR: affirmed at 'B'
National Long-term Rating: affirmed at 'A(rus)'; Outlook Stable
Viability Rating: affirmed at 'b+'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
Senior unsecured debt (including that issued by TCS Finance
Limited) Long-term rating: affirmed at 'B+'; Recovery Rating
'RR4'
Senior unsecured debt National Long-term Rating: affirmed at
'A(rus)'
Subordinated debt (issued by TCS Finance Limited) Long-term
rating: affirmed at 'B'; Recovery Rating 'RR5'

SCB

Long-term foreign and local currency IDRs: affirmed at 'B+';
Outlooks Stable
National Long-term Rating: affirmed at 'A(rus)'; Outlook Stable
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'b+'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'


MECHEL OAO: Possible Bankruptcy Won't Stop Elga Coal Project
------------------------------------------------------------
PRIME reports that possible bankruptcy of debt ridden metals and
mining group Mechel will not stop the development of its Elga
coal project in the Far East, Far Eastern Development Minister
Alexander Galushka told reporters Tuesday.

On Oct. 16, Russian Railways CEO Vladimir Yakunin said the
company still thinks it is possible to purchase the railroad to
the Elga coal deposit from Mechel if the government allocates
money for it, PRIME relates.  In September, Yakunin said Russian
Railways may receive RUR70 billion from the National Wealth Fund
to buy the railroad, PRIME recounts.

Mechel, whose net debt stands at US$8 billion, owes US$2.3
billion to Gazprombank, US$1.8 billion to VTB and Us$1.3 billion
to Sberbank, PRIME discloses.  The company has been in debt
restructuring talks for six months, PRIME notes.

In September, VTB filed a lawsuit against Mechel demanding the
repayment of a RUR2.99 billion overdue debt, as the bank was not
satisfied with the company's restructuring plan, PRIME relays.
Sberbank filed a 1.5 billion ruble suit against the company and
four its affiliates, PRIME recounts.

Mechel OAO is a Russian steel and coking coal producer.

As reported by the Troubled Company Reporter-Europe on October 3,
2014, Moody's Interfax Rating Agency downgraded Mechel OAO's
national scale rating (NSR) to Caa2.ru from Ba3.ru. The outlook
on the rating is negative. Moody's Interfax is majority-owned by
Moody's Investors Service (MIS).  Moody's Interfax's downgrade of
the NSR of Mechel follows MIS's downgrade of the company's
corporate family rating to Caa3 with a negative outlook.



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


SANTANDER EMPRESAS 2: S&P Affirms 'D' Rating on Class F Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services raised to 'BBB (sf)' from
'BBB- (sf)' its credit rating on Fondo de Titulizacion de Activos
Santander Empresas 2's class D notes.  At the same time, S&P has
affirmed its ratings on the class B, C, E, and F notes.

Upon publishing S&P's updated criteria for rating single-
jurisdiction securitizations above the sovereign foreign currency
rating (RAS criteria), S&P placed those ratings that could
potentially be affected "under criteria observation" (UCO).

Following S&P's review of this transaction, its ratings that
could potentially be affected by the criteria are no longer under
criteria observation.

S&P has used data from the Aug. 2014 investor report to perform
its credit and cash flow analysis and has applied its European
small and midsize enterprise (SME) collateralized loan obligation
(CLO) criteria and its current counterparty criteria.  For
ratings in this transaction that are above S&P's rating on the
sovereign, it has also applied its RAS criteria.

CREDIT ANALYSIS

Santander Empresas 2 is a single-jurisdiction cash flow CLO
transaction securitizing a portfolio of SME loans that was
originated by Banco Santander S.A. in Spain.  The transaction
closed in Dec. 2006.

S&P has applied its European SME CLO criteria to determine the
scenario default rate (SDR) -- the minimum level of portfolio
defaults that S&P expects each tranche to be able to withstand at
a specific rating level using CDO Evaluator.

To determine the SDR, S&P adjusted the archetypical European SME
average 'b+' credit quality to reflect two factors (country and
originator and portfolio selection adjustments).

S&P ranked the originator into the moderate category.  Taking
into account Spain's Banking Industry Country Risk Assessment
(BICRA) score of 6 and the originator's average annual observed
default frequency, S&P has applied a downward adjustment of one
notch to the 'b+' archetypical average credit quality.  To
address differences in the creditworthiness of the securitized
portfolio compared with the originator's entire loan book, S&P
further adjusted the average credit quality by one notch.

As a result of these adjustments, S&P's average credit quality
assessment of the portfolio was 'b-', which it used to generate
its 'AAA' SDR of 79.98%.

S&P has calculated the 'B' SDR, based primarily on its analysis
of historical SME performance data and S&P's projections of the
transaction's future performance.  S&P has reviewed the
originator's historical default data, and assessed market
developments, macroeconomic factors, changes in country risk, and
the way these factors are likely to affect the loan portfolio's
creditworthiness.  As a result of this analysis, S&P's 'B' SDR is
10%.

S&P interpolated the SDRs for rating levels between 'B' and 'AAA'
in accordance with its European SME CLO criteria.

RECOVERY RATE ANALYSIS

S&P applied a weighted-average recovery rate (WARR) at each
liability rating level by considering the asset type and its
seniority, the country recovery grouping, and the observed
historical recoveries in this transaction.

COUNTRY RISK

S&P's long-term rating on the Kingdom of Spain is 'BBB'.  S&P's
RAS criteria require the tranche to have sufficient credit
enhancement to pass a minimum of a "severe" stress to qualify to
be rated above the sovereign.

CASH FLOW ANALYSIS

S&P used the reported portfolio balance that it considered to be
performing, the principal cash balance, the current weighted-
average spread, and the weighted-average recovery rates that S&P
considered to be appropriate.  S&P subjected the capital
structure to various cash flow stress scenarios, incorporating
different default patterns and timings and interest rate curves,
to determine the rating level, based on the available credit
enhancement for each class of notes under S&P's European SME CLO
criteria.

"Under our RAS criteria, we can rate a securitization up to four
notches above our foreign currency rating on the sovereign if the
tranche can withstand "severe" stresses.  However, if all six of
the conditions in paragraph 48 of the RAS criteria are met
(including credit enhancement being sufficient to pass an extreme
stress), we can assign ratings in this transaction up to a
maximum of six notches (two additional notches of uplift) above
the sovereign rating.  The available credit enhancement for the
class B notes withstands extreme stresses, while that for the
class C notes withstands severe stresses.  We have therefore
affirmed our ratings on these classes of notes," S&P said.

Given that the rating levels for the class D and E notes are
lower than the sovereign ratings, S&P has not applied its RAS
criteria. Based on S&P's credit and cash flow analysis and the
application of its current counterparty criteria, S&P considers
the available credit enhancement for the class D notes to be
commensurate with a higher rating than that currently assigned.
S&P has therefore raised to 'BBB (sf)' from 'BBB- (sf)' its
rating on the class D notes.

S&P's current 'D (sf)' rating on the class F notes signifies that
it has missed an interest payment.  S&P's cash flow analysis
indicates that the available credit enhancement for the class F
notes is commensurate with the currently assigned rating.  S&P
has therefore affirmed its 'D (sf)' rating on the class F notes.

SUPPLEMENTAL TESTS

The application of the largest obligor default test constrained
S&P's rating on the class E notes.  The supplemental stress tests
address event and model risk not captured in S&P's credit and
cash flow analysis.

Because the largest obligor default test constrains S&P's rating
on the class E notes, it has affirmed its 'B- (sf)' rating on
this class of notes.

RATINGS LIST

Class              Rating
            To                From

Fondo de Titulizacion de Activos Santander Empresas 2
EUR2.954 Billion Floating-Rate Notes

Rating Raised

D           BBB (sf)          BBB- (sf)

Ratings Affirmed

B           AA (sf)
C           A+ (sf)
E           B- (sf)
F           D (sf)



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


ARROW GLOBAL: S&P Rates New EUR220MM Sr. Secured Notes 'BB-'
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' issue
rating to the new EUR220 million senior secured term notes issued
by Arrow Global Finance PLC, a wholly owned subsidiary of U.K.-
based purchaser of distressed debt, Arrow Global Group PLC.

At the same time, S&P assigned a recovery rating of '2' to the
notes, reflecting S&P's expectation of substantial recovery (70%-
90%) for noteholders in the event of default.

S&P views the notes issuance as a logical step after Arrow Global
announced its plan to acquire Capquest.  S&P understands that
Arrow Global intends to use the net proceeds of the notes to pay
the GBP158 million acquisition price, and it will retain about
GBP7.6 million in cash on the balance sheet.

S&P understands that the EUR220 million senior secured notes are
guaranteed by all of Arrow Global's material subsidiaries,
defined in the notes' terms and conditions as the "Guarantors."
The Guarantors will also include two subsidiaries of Capquest.
The notes are secured by a first-ranking interest on all the
shares of Arrow Global's main subsidiaries and substantially all
of the group's assets.  This security package is similar to that
for Arrow Global's existing debt, in our view.

S&P bases its recovery rating of '2' on its assessment of
recovery on all of Arrow Global's senior secured notes, including
the new EUR220 million notes, being in the 70%-90% range after
repayment of the company's revolving credit facility (RCF).

To determine recoveries, S&P simulates a hypothetical default
scenario, under which Arrow Global is gradually forced to stop
acquiring receivables portfolios and subsequently liquidated.

S&P used a liquidation-value approach to analyze the combined
group's recovery prospects, given the likelihood that the
business would not retain value as an operating entity after a
bankruptcy. S&P's calculation starts with the valuation of the
group's receivables, to which we apply a 25% discount, in line
with the approach S&P follows for Arrow Global's rated U.K.
peers.  S&P also assumes that the RCF would be fully drawn to
purchase additional receivables, on which the 25% discount would
also apply.  Moreover, S&P discounted the group's total
receivables by an additional 3% to take into account
administrative expenses upon liquidation.


JAGUAR LAND: S&P Rates US$500MM Sr. Unsecured Bond 'BB'
-------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' issue rating
to the proposed US$500 million senior unsecured bond to be issued
by U.K.-based automaker Jaguar Land Rover Automotive PLC (JLR).
The recovery rating on the proposed bond is '3', indicating S&P's
expectation of meaningful (50%-70%) recovery in the event of a
payment default.

At the same time, S&P affirmed its 'BB' issue rating on JLR's
existing senior unsecured bonds.  The recovery rating is
unchanged at '3'.

The issue and recovery ratings on the proposed senior unsecured
bond are based on preliminary information and are subject to the
successful issuance of this bond and S&P's satisfactory review of
the final documentation.  S&P understands that the proceeds of
the new debt will be used for general corporate purposes.

The final terms of the bond will be subject to market conditions.

RECOVERY ANALYSIS

S&P's recovery expectations are underpinned by JLR's strong brand
names.  Although nominal recoveries exceed 70%, S&P's criteria
cap the recovery rating at '3', due to the unsecured nature of
the notes.

S&P understands that the documentation for the proposed notes
will not include any restrictions on indebtedness.

S&P's hypothetical default scenario assumes deterioration in
operating performance amid an economic and financial downturn.
S&P believes that this would lead to a steady decline in revenue,
deteriorating profitability, and negative free cash flow over the
next three years.

S&P values JLR as a going concern given its notable market
positions, its strong brand names, and what S&P considers to be
the relatively creditor-friendly insolvency regime in the U.K.

Simulated default assumptions
   -- Year of default: 2018
   -- EBITDA at default: GBP745 million
   -- Implied enterprise value multiple: 5.0x
   -- Jurisdiction: U.K.

Simplified waterfall
   -- Gross enterprise value: GBP3.7 billion
   -- Prior-ranking liabilities: GBP870 million
   -- Net value available to creditors: GBP2.8 billion
   -- Senior unsecured debt: GBP3.6 billion
   -- Senior unsecured recovery expectation: 30%-50%*

* All debt amounts include six months of prepetition interest.
  Nominal recoveries may exceed 70%, but are capped under S&P's
  criteria due to the unsecured nature of the notes.


JOHN M HENDERSON: Administrators to Seek Buyer for Business
-----------------------------------------------------------
Daniel Sanderson at Herald Scotland reports that administrators
called in by John M Henderson & Co Limited have vowed to do all
they can to save the business.

The company went into administration on Friday with 89 of 95
employees made redundant, Herald Scotland relates.

A downturn in key markets leading to reductions in orders as well
as problems with contracts have been blamed for the collapse of
the firm, which is best known for its expertise regarding coke
oven machinery for the steel industry, Herald Scotland discloses.

Blair Nimmo, joint administrator and head of restructuring for
KPMG in Scotland, as cited by Herald Scotland, said: "John M
Henderson is a leading name in the engineering and manufacture of
coke oven machinery with a rich heritage dating back almost 150
years.  It is clearly disappointing that a long-established
company has suffered due to global demand and competition
requiring it to cease trading.

"We will do everything we can to seek a buyer who may be able to
protect the business and which would maximize recoveries for
creditors whilst also helping to maximize opportunities for the
workforce.

"The group has a significant infrastructure comprising a large
property together with heavy engineering machinery, an order
book, customer base and intellectual property.  We would
encourage any party who has an interest in acquiring the group's
business and facilities to contact us as soon as possible."

John M Henderson & Co Limited is an engineering, manufacturing
and installation company, based in Arbroath.


NUTRAFEED LTD: Wrexham Contract Pushed Firm into Administration
---------------------------------------------------------------
Storm Rannard at Inside Media Limited reports that a major
contract with cereal giant Weetabix contributed to the
administration of Wrexham-headquartered food recycling business
Nutrafeed Ltd.

The contract pushed the company's turnover to almost GBP10
million, but costs associated with the deal and its fixed price
on cereal waste led to Nutrafeed making a loss of GBP290,000 in
the first six months of 2014, according to Inside Media Limited.

Matthew Ingram and John Whitfield of Duff & Phelps were appointed
joint administrators of Nutrafeed Ltd on August 20, 2014.

A new report from the administrators has revealed that
Nutrafeed's revenues increased from GBP3.9 million in 2011 to
GBP9.8 million in 2013 after it secured the contract to process
Weetabix cereal waste into animal feed, the report notes.  The
deal contributed to almost half of Nutrafeed's annual turnover.

However, the company was impacted by a large wheat harvest and
mild winter during 2013/14, which led to the price of wheat
falling below its 12-month fixed-term purchase price agreement
for Weetabix's cereal waste, the report relates.

During the first half of 2014, Nutrafeed made a loss of
GBP290,000, leading to cash flow pressure at the business, the
report notes.  Directors entered into discussions with Weetabix
to amend its contract terms, but were unsuccessful, the report
says.

The new report said Weetabix then restricted its supply to the
business because of Nutrafeed's continued losses and "severely
constrained" cash flow, Insider Media Limited says.

A total of 17 staff were made redundant on the appointment of
administrators.  Nutrafeed, which also counted Silver Spoon and
Kelloggs as clients, operated from Wrexham Industrial Estate and
a site in Corby, East Midlands.

At the time of the failure, Nutrafeed owed Barclays Trade and
Working Capital approximately GBP254,000, the report notes.  More
than GBP150,000 had been repaid by the beginning of October 2014
and administrators said there will be sufficient funds to repay
the debt in full, the report says.

However, non-preferential unsecured creditors could miss out on
almost GBP1 million, the report discloses.  Debts to trade and
expense creditors and residual employee claims totaled
GBP988,834.
Administrators anticipate a distribution would not be possible
due to "insufficient realizations," the report adds.


POLDARK TIN MINE: Saved From Administration
-------------------------------------------
Western Morning News reports that Historic Poldark Tin Mine that
inspired classic TV series Poldark has been saved from
administration -- thanks to the BBC filming a new series.

Poldark Tin Mine was active between 1720 and 1780 but was turned
into a museum and tourist attraction in 1972, attracting 18,000
visitors a year, according to Western Morning News.

The report notes that the site was originally called Wheal Roots
but changed its name after it became the setting for the classic
1970s BBC series Poldark, based on the novels of Winston Graham.

The report notes that the mine, near Helston, Cornwall, went into
administration in March because of dropping visitor numbers and
was put on the market for GBP350,000.

However, another leisure operator has stepped in to save it amid
a surge in interest fuelled by the new Poldark series, which airs
next year, the report relates.

The report notes that Matthew Smith, Director of property firm
Christie and Co's, said: "Interest in the site was high, boosted
by the fact the BBC is making a new drama series in Poldark,
which is set to broadcast on BBC One in 2015."


                            *********

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

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

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


                            *********


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

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

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

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

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

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000 or Nina Novak at
202-362-8552.


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