TCREUR_Public/141212.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

          Friday, December 12, 2014, Vol. 15, No. 246

                            Headlines

A Z E R B A I J A N

ACCESSBANK: Fitch Raises Issuer Default Rating From 'BB+'


B O S N I A

TEHNOGAS DOBOJ: Bosnia Court Opens Bankruptcy Proceedings


G E R M A N Y

MINIMAX VIKING: Moody's Raises Corporate Family Rating to 'B1'
TUI AG: Moody's Hikes Corporate Family Rating to 'Ba3'
TUI AG: S&P Raises Corp. Credit Rating to 'BB-'; Outlook Stable
YI-KO HOLDING: Files for Insolvency in Germany; 300 Jobs at Risk


I R E L A N D

ALLIED IRISH: Moody's Raises Senior Debt Rating to 'Ba3'


I T A L Y

BERICA 6 RESIDENTIAL: Moody's Reviews 'Caa2' Rating for Downgrade
WIND TELECOMUNICAZIONI: S&P Revises Outlook & Affirms 'BB-' CCR


L U X E M B O U R G

ALTICE SA: Moody's Puts '(P)B1' CFR on Review for Downgrade
TRITON III: Moody's Affirms 'B3' Corporate Family Rating


N E T H E R L A N D S

GROSVENOR PLACE: Moody's Affirms 'Ba2' Rating on Class E Notes
JUBILEE CDO VI: Moody's Raises Rating on Class E Notes to 'B1'
ROYAL BANK: S&P Raises Rating on EUR50MM Rente Plus Notes to BB-


S L O V E N I A

MAKSIMA HOLDING: Declared Bankrupt; Faces Trading Suspension


S P A I N

GOLDCAR RENTAL: Moody's Assigns 'B2' Corporate Family Rating


S W E D E N

NORTHLAND RESOURCES: Moody's Cuts Prob. Default Rating to D-PD


U K R A I N E

GOLDEN GATE: DGF Appoints Valerii Yermak as Liquidator
UKRAINE: Needs to Fill US$15-Bil. Shortfall to Avoid Collapse


U N I T E D   K I N G D O M

ENQUEST PLC: Moody's Affirms 'B1' Corporate Family Rating
HARBOURVEST: To Pay First Liquidation Payment to Shareholders
ITHACA ENERGY: Moody's Affirms 'B2' Corporate Family Rating
PRIORY GROUP: S&P Raises Rating on Sr. Unsecured Notes to 'B+'


X X X X X X X X

* BOOK REVIEW: Lost Prophets


                            *********


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A Z E R B A I J A N
===================


ACCESSBANK: Fitch Raises Issuer Default Rating From 'BB+'
---------------------------------------------------------
Fitch Ratings has upgraded Azerbaijan-based Accessbank's (AB)
Long-term Issuer Default Rating (IDR) to 'BBB-' from 'BB+'.  The
Outlook is Stable.

KEY RATING DRIVERS -- IDRS AND SUPPORT RATING (SR)

The upgrade of AB's Long-term IDR, Short-term IDR and SR reflects
Fitch's reassessment of the likelihood of support that the bank
may receive from its core international financial institution
(IFI) shareholders.

Fitch has reassessed its view of the propensity and willingness
of the core shareholders to provide support to AB given (i) its
development mandate as a microfinance bank and the IFIs'
strategic commitment to microfinance lending in developing
markets; (ii) the IFIs' direct ownership of AB, stemming from
their participation as founding shareholders of the bank; (iii)
the significant integration of IFI guidelines into AB's risk-
management and corporate governance frameworks; (iv) AB's still
small size and limited scale, which limits the cost of any
potential support for IFIs; v) reputation risk for the IFIs in
case of AB's default; and (vi) Fitch's understanding that a full
exit of the IFIs from the bank over the next few years is
relatively unlikely.

At the same time, Fitch notes some uncertainty with respect to
timely support always being provided to AB, if needed, given the
fragmented nature of the shareholder structure; the limited
overall strategic importance of the small microfinance bank for
its IFI owners and their intention to gradually decrease their
stakes in the bank in the longer term.  The European Bank for
Reconstruction and Development (AAA/Stable), KfW (AAA/Stable),
International Finance Corporation and the Black Sea Trade and
Development Bank each hold a direct 20% stake in AB, and a 16.5%
stake is held by AccessHolding, in turn also controlled by IFIs.

The upgrade of AB is in line with the recent upgrades of
ProCredit Holding AG and some of its subsidiary banks, which also
reflected a revised assessment of potential support from IFI
shareholders for the ProCredit group's microfinance lending
operations.

RATING SENSITIVITIES -- IDRS AND SR

The downwards revision of Azerbaijan's Country Ceiling (currently
BBB-) would result in a downgrade of AB's ratings.  Downside
risks for AB's IDRs and SR could also stem from a weakening
support stance of the IFIs or the development of more concrete
plans about the potential future disposal of the bank.  However,
these scenarios are not currently anticipated by Fitch.

Upside potential for AB's support-driven IDRs is limited in the
near term.  AB will not be upgraded further if Azerbaijan's
Country Ceiling is raised.

KEY RATING DRIVERS -- VIABILITY RATING (VR)

The affirmation of AB's VR reflects limited changes in the bank's
credit profile since the last review in December 2013.  AB has
consistently demonstrated favorable asset quality metrics driven
by robust underwriting standards and risk controls, strong bottom
line performance, adequate capitalization and sound quality of
management and corporate governance.

On the negative side, AB's VR is constrained by the potential
cyclicality of the bank's performance and asset quality given the
potentially volatile, structurally weak and oil-dependent
Azerbaijan economy.  Fitch believes that a marked and prolonged
downturn in the economy could be particularly challenging for AB
given the potential adverse effect on its SME borrowers.  AB's
significant reliance on wholesale funding and the high
dollarization of its balance sheet is also credit negative.

At end-1H14, AB reported 0.2% non-performing loans (NPLs, loans
30 days overdue), while restructured loans and write-offs during
the period were equal to a further 0.6% and 0.2% of the
portfolio, respectively.  Capitalization remains reasonable, with
the regulatory ratio standing at 17.1% at end-1H14, although loss
absorption capacity is constrained by strict financial covenants
on regulatory capital ratios embedded in major funding agreements
(total and Tier 1 capital ratios are covenanted at 14% and 10%,
respectively).  However, loss absorption capacity is additionally
supported by strong bottom line results, with pre-impairment
profit equal to 7.3% of average loans in 1H14 (annualized).  AB's
reliance on wholesale funding is high, with a loans/deposits
ratio of 2.4x at end-1H14.  Nonetheless, Fitch views refinancing
risks as moderate given the role of development institutions as
suppliers of funding and AB's fast loan turnover.

KEY RATING SENSITIVITIES -- VR

Near-term upside potential for AB's VR is limited and would
probably require notable improvements in the operating
environment.  A gradual reduction of dependence on wholesale
funding would be also credit positive.

Downside pressure on AB's VR could arise if capital is
substantially eroded as a result of sharp asset quality
deterioration driven by a marked weakening of the Azerbaijan
economy, for example in case of a prolonged period of low oil
prices.

The rating actions are:

  Long-term IDR: upgraded to 'BBB-' from 'BB+'; Outlook Stable

  Short-term IDR: upgraded to 'F3' from 'B'

  Viability Rating: affirmed at 'bb-'

  Support Rating: upgraded to '2' from '3'



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B O S N I A
===========


TEHNOGAS DOBOJ: Bosnia Court Opens Bankruptcy Proceedings
---------------------------------------------------------
SeeNews reports that the district commercial court in Bosnia's
Doboj said on Dec. 9 it has opened bankruptcy proceedings against
Tehnogas Doboj.

According to SeeNews, the court said in a filing with the Banja
Luka Stock Exchange the proceedings were launched on Dec. 1 with
Dragan Danilovic appointed as administrator.

A meeting of the company's creditors is scheduled for Feb. 11,
SeeNews discloses.

Tehnogas Doboj is a local industrial gases producer.




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


MINIMAX VIKING: Moody's Raises Corporate Family Rating to 'B1'
--------------------------------------------------------------
Moody's Investors Service has upgraded to B1 from B2 the
Corporate Family Rating (CFR) and to B1-PD from B2-PD the
Probability of Default Rating (PDR) of Germany-based active fire
protection and detection solutions provider Minimax Viking GmbH.
At the same time, Moody's upgraded to B1 (LGD3-44%) from B2
(LGD3-45%) the ratings on the group's senior secured credit
facilities. The outlook on the ratings remains stable.

"The upgrade of Minimax recognizes the groups sound operating
performance and faster-than-expected improvement in its credit
metrics during the last twelve months", says Goetz Grossmann,
Moody's lead analyst for Minimax. "The rating action also
reflects Moody's expectation that Minimax will be able to reduce
its Moody's adjusted leverage to below 5x debt/EBITDA over the
next 18-24 months supported by a continued growth in earnings and
solid positive free cash flow generation that will be applied to
debt reduction", adds Mr. Grossmann.

List of Affected Ratings

Upgrades:

Issuer: Minimax Viking GmbH

Probability of Default Rating, Upgraded to B1-PD from B2-PD

Corporate Family Rating, Upgraded to B1 from B2

EUR270.4 million Senior Secured Bank Credit Facility (Local
Currency) Aug 16, 2020, Upgraded to B1 from B2

EUR40 million Senior Secured Bank Credit Facility (Local
Currency) Aug 16, 2019, Upgraded to B1 from B2

Issuer: Minimax GmbH & Co. KG

EUR44.6 million Senior Secured Bank Credit Facility (Local
Currency), Upgraded to B1 from B2

Issuer: MX Holdings US, Inc.

US$422 million Senior Secured Bank Credit Facility (Local
Currency) Aug 8, 2020, Upgraded to B1 from B2

Outlook Actions:

Issuer: Minimax Viking GmbH

Outlook, Remains Stable

Issuer: Minimax GmbH & Co. KG

Outlook, Remains Stable

Issuer: MX Holdings US, Inc.

Outlook, Remains Stable

Ratings Rationale

The upgrade to B1 reflects the solid and sustained improvement in
Minimax's earnings and profitability throughout this year which
was mainly driven by strong demand growth in the group's US
Products segment but also for its Service and System Integration
solutions across Europe and North America. The group's reported
EBITDA (as adjusted by Minimax) increased to EUR109 million in
the first nine months of 2014 which is up almost 10% versus the
prior year, corresponding with a 12.3% EBITDA margin in the same
period (+0.7%). Likewise, Minimax's credit metrics improved at a
faster pace than the rating agency had anticipated when assigning
first time ratings to Minimax last year. In the twelve months
ended September 2014, Minimax's EBITA margin as adjusted by
Moody's increased to around 11.8% (2013: 10.6%), while its
adjusted leverage ratio reduced to around 5.3x debt/EBITDA from
5.7x in 2013. Although Minimax's leverage is rather high for the
B1 rating category, Moody's takes comfort from the resilience of
the business with a large portion (approximately 50%) of sales
being recurring in nature and a currently healthy business
environment which the agency expects to remain favorable in the
foreseeable future. As a consequence, Moody's assumes that
Minimax's operational performance and financial metrics will
continue improving over the next few years as, for instance,
reflected in a gradual improvement in its adjusted leverage ratio
to below 5x debt/EBITDA by the end of 2016 at the latest. Moody's
also believes that Minimax's capacity to generate positive free
cash flows has strengthened since the refinancing in 2013 which
reduced the group's interest burden and which also included the
conversion of a substantial portion of its shareholder loans into
equity. Moreover, other than in 2013 when the group distributed a
sizeable special dividend to its previous owner IK Investment,
Moody's does not anticipate Minimax to pay any regular dividends
to its new shareholders going forward.

The CFR is further supported by (1) the group's resilience
against economic cycles given a high share of recurring revenues,
(2) strong market positions in core markets as "one-stop"
provider covering the entire fire protection value chain, (3) the
expectation of relatively limited volatility of results through
the cycle owing to a substantial share of (aftermarket) service
business, and despite the exposure to cyclical end markets, and
(4) high barriers to entry due to strict and partly tightening
regulations related to fire protection equipment.

That said, the rating remains constrained by (1) Minimax's high
leverage, as evidenced by an adjusted debt/EBITDA ratio of around
5.3x in the twelve months ended 30 September 2014, (2) limited
geographic diversification with Europe accounting for around 54%
of group turnover in 2013, while a major portion of this (c.38%)
relates to Germany, and 34% of group revenue generated in North
and Latin America, and (3) historically, a shareholder oriented
financial policy.

Liquidity

Moody's regards Minimax's liquidity profile as good. This
assessment is based on the availability of around EUR118 million
of cash, cash equivalents and marketable securities reported at
the end of September 2014 as well as annual cash flows from
operations before working capital movements of approximately
EUR100 million. Additionally, the group had access to EUR40
million under its committed revolving credit facility (maturing
2019) which was undrawn as at 30 September 2014. These funding
sources comfortably cover all expected cash needs in the upcoming
12-18 months, including capex of around EUR29 million per annum,
working capital consumption of c.EUR20 million next year and
minor mandatory debt prepayments as specified in the group's loan
documentation.

Minimax's loan agreement also contains conditionality language,
including financial covenants under which the group maintained
ample headroom as of 30 September 2014.

Outlook

The stable outlook on Minimax's rating mirrors Moody's
expectation that demand levels in the group's existing regions
and segments will remain healthy and support a further gradual
improvement in its financial ratios, including Moody's adjusted
debt/EBITDA reducing below 5x over the next 18-24 months. Moody's
also expects Minimax to generate solid positive free cash flows
going forward assuming modest capex and working capital spending
and no dividend distributions to shareholders.

What Could Change the Rating -- Up/Down

Upward pressure on the rating would evolve if Minimax could (1)
sustain its current profitability, (2) reduce leverage to close
to 4x debt/EBITDA, (3) strengthen its cash flow generation,
evidenced by an adjusted FCF/debt ratio in the mid to high single
digit percentage range, and (4) establish a track record of a
conservative financial policy.

Moody's might consider lowering the rating should Minimax's (1)
profitability weaken, exemplified by adjusted EBITA margins
falling below 9%, (2) leverage meaningfully exceed 5x
debt/EBITDA, and (3) free cash flow turn negative. In addition, a
material weakening in its liquidity profile would exert downward
pressure on Minimax's rating.

Principal Methodology

The principal methodology used in these ratings was Global
Manufacturing Companies published in July 2014. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Minimax Viking GmbH, headquartered in Bad Oldesloe, Germany, is a
global operator in the active fire protection and detection
markets. The group serves industrial and commercial clients
through the development, manufacturing and installation of
tailor-made fire protection solutions and offers follow-up and
post system installation services. The group employs more than
6,850 people globally and generated sales of EUR1.2 billion in
the twelve months ended 30 September 2014.


TUI AG: Moody's Hikes Corporate Family Rating to 'Ba3'
------------------------------------------------------
Moody's Investors Service has upgraded to Ba3 from B2 the
corporate family rating (CFR) and to Ba3-PD from B2-PD the
probability of default rating (PDR) of TUI AG (TUI).
Concurrently, Moody's has raised TUI AG's senior unsecured rating
to Ba3 from B2, and the junior subordinated rating to B2 from
Caa1.

Ratings Rationale

"We are upgrading TUI's ratings following shareholder approval
and the expected upcoming completion of the proposed merger
between TUI and TUI Travel," says Sven Reinke, a Moody's Vice
President -- Senior Analyst and lead analyst for TUI. "In
addition to the positive effect on TUI's corporate structure and
potential synergies as a result of the merger, the two notch
upgrade reflects continuing improvements in TUI's underlying
operating profitability and financial profile", added Mr. Reinke.

The rating action reflects Moody's view that TUI's all-share
merger with its majority-owned subsidiary, TUI Travel PLC,
materially improves TUI's financial profile as it simplifies the
group structure and enables TUI to gain full access to cash flows
at the TUI Travel level. Moody's has stated that the rating was
previously constrained by the relative complexity of the group
structure and TUI's limited access to subsidiary cash flows. The
merger of the two companies will materially reduce this
complexity and improve TUI's access to group cash flows. The
rating agency also believes that the combination of the two
businesses is a logical step towards an integrated tourism
business as it combines TUI's large hotel and cruise asset base
with TUI Travel's distribution capabilities.

TUI aims to realize material synergies through combining the two
businesses. The company forecasts at least EUR65 million in
potential synergies as a result of corporate streamlining and the
simplification of the group's structure. TUI plans to consolidate
overlapping functions and to move from two separate stock
listings to one premium listing, as well as cost savings
achievable through the integration of inbound services into the
mainstream tourism business. According to TUI, the combined
businesses would have profited from cash tax benefits for fiscal
year 2013 of EUR35 million owing to the use of carried forward
tax losses in Germany and a more efficient tax grouping.

Moody's views positively that TUI's financing requirements
related to the merger are likely to be very low as change of
control provisions in certain debt instruments are unlikely to be
triggered. TUI Travel's GBP400 million convertible bond currently
trades materially above par and bondholders are therefore
unlikely to demand repayment at par at closure of the merger.
Additionally, TUI's balance sheet debt reduced recently as a
result of the equity conversion of TUI AG's EUR217 million
convertible bond that matured in November 2014 and TUI Travel's
GBP350 million convertible bond that matured in October 2014.
Lower-than-expected financing requirements, as well as the equity
conversion of the convertible bonds enabled TUI to reduce the
high yield bond issuance earmarked for the funding of merger-
related financing requirements from the initially intended EUR600
million to EUR300 million.

TUI's operating performance continued to improve in the financial
year that ended on 30 September 2014, as indicated by 14.0%
growth in underlying group EBITA to EUR868.5 million, from
EUR761.9 million in the previous year. The group's financial
profile improved, driven by the higher operating profitability as
well as a reduction in debt. Gross adjusted leverage lowered to
5.7x at the end of FY09/2014, from 6.4x at the end of FY09/2013
and RCF/net debt increased to 12.9% from 9.6% in FY09/2013. In
addition, Moody's positively notes TUI guidance for a further
10%-15% improvement of the group's underlying EBITA for the
current financial year.

Moody's believes that TUI's liquidity position is solid as it
gains full access to TUI Travel's cash and cash flows post the
completion of the merger. The company has a new syndicated credit
facility of EUR1.75 billion that will replace TUI Travel's
existing GBP1.4 billion RCF at the closure of the merger. TUI
also has EUR2.6 billion of cash, including EUR300 million
proceeds from the high yield bond issuance from September 2014
that are currently invested in money market funds. Moody's
believes that TUI's liquidity is sufficiently flexible to meet
the high seasonal cash swings -- in particular in the first
quarter of the financial year -- as well as the fairly low debt
maturities over the next few years.

Rationale for the Stable Outlook

The stable outlook reflects Moody's view that the key adjusted
leverage metric will at least remain stable in the current
financial year and improve thereafter, mainly driven by synergies
as a result of the merger. The metric could further benefit if
funds from an eventual divestment of the stake in Hapag-Lloyd AG
are applied to debt reduction.

What Could Change the Rating Up/Down

Moody's would consider further upward pressure on TUI's rating if
the company generates synergies as forecasted and continues to
improve its operating performance. Quantitatively, positive
pressure could arise if the group's gross adjusted leverage were
to fall towards 4.5x and the RCF/net debt metric to increase
above 15%, with the group retaining a solid liquidity profile to
address the high seasonal cash swings.

The rating could be lowered if leverage were to remain above 5.5x
and RCF/net debt to fall towards 10% over the next 12-18 months,
or if the group's liquidity profile were to deteriorate
materially.

Principal Methodologies

The principal methodology used in this rating was Global Lodging
& Cruise Industry Rating Methodology published in December 2010.
Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

TUI AG, headquartered in Hanover, Germany, is Europe's largest
integrated tourism group, and currently retains a stake of around
15% in Hapag-Lloyd AG following the merger with CSAV, which is a
leading provider of container shipping services. In FY2014 (to
September), TUI reported revenues and underlying EBITA of EUR18.7
billion and EUR869 million, respectively.


TUI AG: S&P Raises Corp. Credit Rating to 'BB-'; Outlook Stable
---------------------------------------------------------------
Standard & Poor's Ratings Services said it raised its long-term
corporate credit rating on German tour operator TUI AG to 'BB-'
from 'B+'.  The outlook is stable.

In conjunction with the upgrade, S&P also raised its issue rating
on TUI's senior unsecured debt to 'BB-' from 'B+'.  The recovery
rating on this debt remains at '3'.  S&P assigned a 'BB-' rating
to TUI's new senior unsecured EUR1.75 billion revolving credit
facility, with a '3' recovery rating.  S&P also raised its issue
rating on the group's perpetual junior subordinated notes to 'B'
from 'B-'.  S&P has changed the recovery rating on these notes to
'6' from '5', indicating its expectation of negligible (0-10%)
recovery in the event of a payment default.

The upgrade follows the vote in favor by shareholders of both TUI
AG and Tui Travel PLC (not rated) for the merger between the two
companies at the end of October 2014.  S&P now understands the
deal should close on Dec. 11, 2014.

In addition, TUI AG posted sound fourth-quarter 2014 results
(financial year end Sept. 30), revealing a rise in both revenues
and reported EBITDA of about 5% year on year.  Supported by
working capital improvements, reported cash from operations grew
by more than 50% year on year in the fourth quarter to close to
EUR700 million.

When the Tui Travel transaction closes, TUI AG will have full
access to its subsidiaries' cash flows.  Also, S&P thinks that
TUI's Standard & Poor's adjusted leverage metrics will remain in
our "significant" category and therefore assess S&P's comparable
ratings analysis for the group as "neutral," versus "negative"
previously, and no longer incorporate a one-notch downward
adjustment in the rating.  This prompts S&P's raising of the
long-term rating on the group to 'BB-' from 'B+'.

S&P continues to assess TUI's business risk profile as "weak."
TUI is exposed to the cyclicality and the strong seasonality of
the tourism industry.  Typically, the group generates about 40%
of annual sales and more than 100% of annual underlying EBITDA in
the fourth quarter of the fiscal year.

This pattern results in significant event risk.  For instance,
political unrest in holiday destinations such as Egypt and
Tunisia, widespread diseases like bird flu, or prolonged strikes
during summer seasons can have a severe impact on TUI's
profitability and cash flows.  The nature of these risks makes
them unpredictable.

In addition, TUI is exposed to changes in discretionary consumer
spending that are linked to general economic developments.  A
reheating of the financial crisis, the introduction of new fiscal
austerity programs, or a decline in economic activity for other
reasons are likely to push up unemployment rates and pull down
household income.  In such scenarios, S&P put holiday
expenditures among the first items to be cut.

Online competition poses another source of risk to the business
model.  In S&P's view, the Internet makes the quality of holiday
offerings and prices more comparable and enables smaller
competitors to attract new customers.

Although TUI's Standard & Poor's adjusted EBITDA margin continues
to grow, at slightly above 10% it remains below other rated
issuers in the leisure segment.

The abovementioned weaknesses are partly offset by the strong
recognition of the TUI brand and of the group's portfolio of
brands, such as Riu Hotels and Robinson Club.  In light of the
time and capital it takes to build such strong brands, S&P
believes that TUI is better protected from competition than many
other smaller or lesser known travel companies.

The group's large size puts it in a favorable negotiating
position with hotel owners.  It also enables it to offer
exclusive locations (meaning hotels or clubs that are not
available from any other competitor).  For these locations, TUI
has much higher leeway to set prices.  In addition, the group's
geographic diversification enables it to redirect customers to
alternative destinations in the event of regionally isolated
events.

We continue to assess TUI's financial risk profile as
"significant."  On a five-year average, Standard & Poor's
adjusted basis, funds from operations (FFO) to debt of 23%-26%
falls into the middle of our "significant" financial risk
category, while debt to EBITDA of 2.8x-3.1x is commensurate with
the lower end of our "intermediate" category.

S&P's assessment of these two core ratios is supported by the
level of Standard & Poor's adjusted supplementary coverage and
payback ratios.  While EBITDA interest coverage of 4.5x-5.0x is
in the middle of the "significant" financial risk category, free
operating cash flow (FOCF) to debt of 14%-17% and discretionary
cash flow (DCF) to debt of 10%-13% are at the lower end of S&P's
"intermediate" bracket.

Among other items related to hybrid capital and convertible debt
instruments, S&P increases TUI's financial debt by adding the
present value of operating lease commitments of EUR3.3 billion
and net pension provisions of EUR1.1 billion.  S&P applies a
haircut of 60%-80% to available cash and equivalents to reflect
period-end timing differences, resulting in the need to fund an
average of about EUR1.5 billion of negative free cash flow in
each fiscal year's first quarter (ending Dec. 31).

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

   -- GDP growth in 2015 and 2016 of 1.1% and 1.6%, respectively,
      in Germany, and 2.7% and 2.5% in the U.K.

   -- Real consumer spending in 2015 and 2016 rising by 0.6% each
      in Germany, and 2.4% and 2.3%, respectively, in the U.K.

   -- TUI revenues to grow by approximately 2.0%-2.5% per year in
      2015 and 2016 through a combination of increases in the
      number of customers and in prices.

   -- On a Standard & Poor's adjusted basis, S&P expects TUI AG's
      EBITDA margin to widen to 11%-12% in 2015 and 2016 from
      10.5% in 2014, helped by revenue advances and continued
      cost discipline.

   -- Given that improvements in working capital will likely not
      match the high level recorded in 2014, S&P expects cash
      flow from operations in 2015 and 2016 to decrease slightly
      to about EUR900 million from close to EUR950 million in
      2014.

   -- Annual capital expenditures of EUR600 million-EUR650
      million.

   -- Dividends of about EUR300 million per year.

Based on these assumptions, S&P forecasts these average credit
measures for TUI for fiscal years 2015 and 2016:

   -- Standard & Poor's adjusted FFO to debt of 24%-26%.

   -- Standard & Poor's adjusted debt to EBITDA of 2.8x-3.0x.

   -- Standard & Poor's adjusted EBITDA interest coverage of
      4.5x-5.0x.

   -- Standard & Poor's adjusted FOCF to debt of 14%-16%.

   -- Standard & Poor's adjusted DCF to debt of 9%-12%.

The stable outlook reflects S&P's expectation that TUI will
continue to generate a solid operating performance, leading to
leverage ratios commensurate with S&P's "significant" financial
risk assessment.  S&P also anticipates the group will have at
least "adequate" liquidity, as our criteria define this term.

S&P could raise its ratings if TUI posts stronger-than-expected
growth in revenues, profits, and cash flows, particularly
following the closing of the Tui Travel acquisition.  S&P could
also consider an upgrade if it saw further evidence of the
business model's resistance against severe downturns in the
economy or the emergence of low-probability/high-impact events,
such as terrorist attacks or natural disasters.

S&P would likely lower its ratings on TUI if unexpected operating
setbacks or an aggressive financial policy led to FFO to debt of
less than 20%, adjusted debt to EBITDA exceeding 4x, or adjusted
EBITDA interest coverage falling below 3x, all on a sustainable
basis.  S&P could also consider lowering the ratings if it
anticipated that TUI's liquidity would deteriorate to "less than
adequate."


YI-KO HOLDING: Files for Insolvency in Germany; 300 Jobs at Risk
----------------------------------------------------------------
Alexander Huebner at Reuters reports that Yi-Ko Holding, formerly
the biggest operator of Burger King restaurants in Germany, has
filed for insolvency, putting 3,000 jobs at risk.

Burger King had told Yi-Ko three weeks ago to shut down its 89
restaurants across Germany immediately, saying the franchisee had
violated its rules on the treatment of employees, Reuters
relates.

According to Reuters, law firm Graf von Westphalen, acting for
Yi-Ko, said on Dec. 10 they submitted an insolvency filing with a
court in the northern German town of Stade after talks to come to
an agreement with Burger King failed.

Burger King said in a statement that it had been unable to assess
the risks of staying in business with Yi-Ko in the short time
available, Reuters notes.

"But we will continue to try to find a solution to re-open the
restaurants quickly and secure the jobs," Burger King, as cited
by Reuters, said, without saying who might operate the outlets in
the future.



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ALLIED IRISH: Moody's Raises Senior Debt Rating to 'Ba3'
--------------------------------------------------------
Moody's Investors Service has upgraded Allied Irish Banks p.l.c's
(AIB) senior debt ratings to Ba3 from B1 and deposit ratings to
Ba2 from Ba3 and adjusted upwards the bank's standalone credit
assessment (BCA) to b1 from b2.

The rating actions follow (1) the improving operating
environments in AIB's two largest operating markets, Ireland
(Baa1 stable) and the UK (Aa1 stable); (2) the bank's
strengthening credit fundamentals and its return to
profitability; and (3) AIB's adequate capital levels, further
supported by its performance under the European Central Bank's
(ECB) Comprehensive Assessment.

Simultaneously, the agency affirmed AIB's standalone bank
financial strength rating (BFSR) at E+ and the short-term deposit
and debt ratings at Not Prime. The outlook on the standalone BFSR
and on the debt instruments remains stable.

Moody's has also upgraded AIB's subordinated debt and hybrid
instrument ratings. A full list of affected entities and ratings
is included at the end of this press release.

The outlook on deposit ratings remains negative reflecting the
lower probability of government (systemic) support expected for
creditors following the recent adoption of the Bank Recovery and
Resolution Directive (BRRD) and the Single Resolution Mechanism
(SRM) regulation in the EU.

Ratings Rationale

--- Improving Operating Environments in AIB's Two Largest
Operating Markets

Moody's believes that the more favorable economic environment in
Ireland and UK will benefit AIB's credit fundamentals, both in
terms of profitability, owing to lower impairments and cost of
funding, and its credit risk profile. The much reduced inflow of
new problem loans and the general increase in property prices has
improved the value of the real-estate collateral in the
portfolio, thereby reducing potential losses. Moody's notes that
as a consequence of the increase in property prices, the weighted
average loan-to-value (LTV) ratio of the Irish residential
portfolio decreased to 95% in August 2014 compared with 108% of
the previous year.

--- Strengthening Credit Fundamentals

AIB's metrics generally improved in 2014: the bank returned to
profitability, rebalanced its funding profile with a material
reduction in usage of central bank's funds and its asset-quality
ratios stabilized.

In H1 2014, AIB's increasing net interest margin, improved
efficiency and significantly lower impairment charges meant the
bank reported EUR437 million of profit (before taxes). AIB
realised some write-backs also in 2013 and, as the operating
conditions continue to improve, the rating agency expects the
cost of risk to remain low in the next two years.

The return to profitability helped to improve the bank's loss-
absorption capacity. The Common Equity Tier 1 ratio (CET1) on a
transitional basis was 16.5% at end-9M2014, compared to 15% of
the beginning of the year. The use of central bank funds further
reduced to EUR2.4 billion compared to EUR22.2 billion of end-
2012, while the liquidity position improved with the Liquidity
Coverage Ratio and the Net Stable Funding Ratio at 115% and 114%
respectively at end-9M2014. Impaired loans reduced to EUR24.3
billion at end-9M2014 or 16% lower than end-2013 levels. However,
despite the improvements that Moody's expects will continue over
the next two years, the stock of impaired loans remains very high
and exposes AIB to the material risk of losses. This factor is a
key rating driver and currently constrains the bank's BCA at b1.

--- Adequate Provisioning and Capital Levels

AIB now has adequate provisioning levels and would remain
sufficiently capitalized to withstand an adverse economic shock
under the current transitional capital rules, both supported by
the outcome of its performance under the ECB's comprehensive
assessment. However, the results released by the European Banking
Authority also showed that relative to other European peers and
like other Irish banks, AIB's fully loaded ratios are low and
even negative in an adverse scenario. The key drivers of the more
negative fully CET1 ratio are deferred tax assets and de-
recognition in 2017 of preference shares. The rating agency
expects that AIB will be able to moderately reduce the amount of
Deferred Tax Assets because the bank has returned to profit
generation. However, Moody's sees the bank's current capital
structure as a weakness, especially in relation to the hybrid
instruments but believes that both AIB and the Irish government,
its main shareholder, will be motivated to find a solution for
the preference shares particularly given the government's
ambition to return AIB to the private sector.

Rationale for the Negative Outlook on Deposits Rating

The negative outlook on the long-term deposit rating reflects
Moody's view of a trend towards a lower likelihood of systemic
support for Irish banks being provided in the event of need,
following the recent adoption of the BRRD and SRM package. In
particular, this outlook reflects that the balance of risk for
banks' senior unsecured creditors has shifted to the downside,
because the new resolution framework and the explicit inclusion
of burden-sharing with unsecured creditors aims to shift the
burden of potential recapitalization/resolution of a bank away --
from using public funds. Although Moody's support assumptions are
unchanged for now, it says there is a probability that these
assumptions will be revised downwards to reflect the new
framework.

AIB's senior debt rating benefits from one notch of rating uplift
from its b1 BCA, reflecting Moody's expectation of a moderate
probability of systemic support, if needed. Currently, Moody's
does not expect to lower the probability assessment by any
material degree, even after full implementation of the BRRD. For
further details, please refer to the Special Comment:
"Reassessing Systemic Support for EU Banks," published on 29 May
2014.

What Could Change the Rating -- UP

Upward pressure on AIB's ratings could develop from increased
clarity over its capital structure, in particular in relation to
the replacement of the hybrid instruments. Other elements that
could exert upward pressure on the bank's BCA in the medium term
are (1) further improvements in profitability and efficiency; (2)
additional improvements in the bank's fully loaded capital and
leverage metrics; (3) maintaining a sound liquidity profile;
and/or (4) a significant reduction in the stock of problem loans
along with positive net lending, albeit at a moderate pace.

What Could Change the Rating -- DOWN

AIB's ratings could be adversely affected by (1) a reversal in
the bank's improving asset-quality trend; (2) an unexpected
deterioration in the bank's profitability metrics; (3) material
deterioration in its liquidity profile or funding position;
and/or (4) a reduction in Moody's systemic support expectations.

List of Affected Ratings

Issuer: Allied Irish Banks, p.l.c.

  Adjusted Baseline Credit Assessment, Raised to b1 from b2

  Baseline Credit Assessment, Raised to b1 from b2

  Bank Financial Strength Rating, Affirmed E+ STA

  Long-Term Bank Deposit Ratings, Upgraded to Ba2 NEG from Ba3
  NEG

  Short-Term Bank Deposit Ratings, Affirmed NP

  Senior Unsecured Regular Bond/Debenture, Upgraded to Ba3 STA
  from B1 STA

  Subordinated Regular Bond/Debenture, Upgraded to B2 STA from B3
  STA

  Junior Subordinated Regular Bond/Debenture, Upgraded to Caa2
  (hyb) STA from C (hyb)

  Senior Unsecured Medium-Term Note Program, Upgraded to (P)Ba3
  from (P)B1

  Subordinated Medium-Term Note Program, Upgraded to (P)B2 from
  (P)B3

  Junior Subordinated Medium-Term Note Program, Upgraded to
  (P)Caa2 from (P)C

  Short-Term Medium-Term Note Program, Affirmed (P)NP

  Outlook, Remains Negative(m)

Issuer: EBS Ltd

  Adjusted Baseline Credit Assessment, Raised to b1 from b2

  Baseline Credit Assessment, Raised to b1 from b2

  Bank Financial Strength Rating, Affirmed E+ STA

  Long-Term Bank Deposit Ratings, Upgraded to Ba2 NEG from Ba3
  NEG

  Short-Term Bank Deposit Ratings, Affirmed NP

  Senior Unsecured Regular Bond/Debenture, Upgraded to Ba3 STA
  from B1 STA

  Senior Unsecured Medium-Term Note Program, Upgraded to (P)Ba3
  from (P)B1

  Subordinated Medium-Term Note Program, Upgraded to (P)B2 from
  (P)B3

  Short-Term Medium-Term Note Program, Affirmed (P)NP

  Outlook, Remains Negative(m)

Issuer: AIB North America, Inc.

  Long-Term Bank Deposit Rating, Upgraded to Ba2 NEG from Ba3 NEG

  Outlook, Remains Negative

Issuer: Allied Irish Banks, NY

  Short-Term Bank Deposit Rating, Affirmed NP



=========
I T A L Y
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BERICA 6 RESIDENTIAL: Moody's Reviews 'Caa2' Rating for Downgrade
-----------------------------------------------------------------
Moody's Investors Service has placed the ratings of all notes in
Berica 6 Residential MBS S.r.l. on review for downgrade.

Ratings Rationale

The rating actions reflects the increase in risk resulting from
the weakening of Banca Popolare di Vicenza S.c.p.a.. Banca
Popolare di Vicenza S.c.p.a. acting as the servicer in the
transaction. The action also reflects the deterioration in
collateral performance.

-- Collateral Performance

The performance of this transaction has been worse than
anticipated. The cumulative defaults as a percentage of the
original pool balance in Berica 6 increased to 9.2% versus 8.4%
in July 2013.

-- Exposure to Counterparties

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

During the rating review Moody's will assess collateral portfolio
data and performance data.

Moody's will also consider the exposure to set-off risk arising
from borrowers deposit held at Banca Popolare di Vicenza S.c.p.a.
Moody's also notes that Deutsche Bank AG, London Branch (A3/(P)P-
2) is acting as the account bank while Commerzbank AG (Baa1/P-2)
is acting as the commingling risk guarantor and swap
counterparty.

Principal Methodology

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 rating:

Factors or circumstances that could lead to an upgrade of the
rating 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
rating 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: Berica 6 Residential MBS S.r.l.

EUR1185 million Class A2 Notes, A3 (sf) Placed Under Review for
Possible Downgrade; previously on Aug 30, 2013 Upgraded to A3
(sf)

EUR42.8 million Class B Notes, Ba2 (sf) Placed Under Review for
Possible Downgrade; previously on Jun 26, 2013 Downgraded to Ba2
(sf)

EUR28.6 million Class C Notes, B3 (sf) Placed Under Review for
Possible Downgrade; previously on Jun 26, 2013 Downgraded to B3
(sf)

EUR8.565M Class D Notes, Caa2 (sf) Placed Under Review for
Possible Downgrade; previously on Jun 26, 2013 Downgraded to
Caa2 (sf)


WIND TELECOMUNICAZIONI: S&P Revises Outlook & Affirms 'BB-' CCR
---------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Italy-
based Wind Telecomunicazioni SpA to negative from stable.

At the same time, S&P affirmed its 'BB-' long-term corporate
credit rating on Wind.

"The outlook revision reflects Wind's recent operating
performance, which has been weaker than we had previously
anticipated.  While we still assume that the pace of revenue
decline will moderate, thanks to both diminishing price
aggressiveness in the market and some benefits from rapidly
increasing data usage, we do not expect the Italian telecom
market to return to growth before 2016.  We base our forecasts on
our anticipation of continued pressure from a decline in short
message service (SMS) revenues and voice usage, and the potential
for an only modest acceleration in the monetization of data
growth, as the Italian economy continues to suffer from weak
growth prospects and rising unemployment.  Additionally, we think
that Wind's competitive advantage may suffer, to some extent,
from its meaningfully lower 4G coverage than its main
competitors', Telecom Italia and Vodafone.  While 4G may not be a
big differentiating factor at this point, it could become
significant in terms of customer perception, which could lead to
a higher churn rate.  It could also mean that Wind has to make
more investments and faster than planned in order to catch up
with its peers, although this option is limited given Wind's
relatively low free cash flow generation and already tight
headroom under its covenants.  Market leaders Telecom Italia and
Vodafone have both recently announced an acceleration of their
network investments in Italy. While Wind continues to offer lower
priced mobile packages, we think that in the current low pricing
environment, the price difference is less material than before
and may not make up for perceptions of variations in network
quality.  Additionally, although the Italian market has not so
far been characterized by meaningful convergence of mobile and
fixed telecom services, Telecom Italia's recent quad play offers
and increased investments in fiber may weaken Wind's business
offering and profitability.  This is because Wind's Local Loop
Unbundling coverage is more limited than Telecom Italia's fixed-
line network, and the company relies on access fees from Telecom
Italia," S&P said.

"We continue to assess Wind as a moderately strategic subsidiary
to Russian group Vimpelcom, implying our assessment that
Vimpelcom is likely to provide some form of financial support to
Wind if it falls into financial difficulty.  Although we
currently think Wind is unlikely to be sold by Vimpelcom over the
medium term, we do not view its importance as higher than
moderately strategic, notably given the meaningfully higher
leverage at Wind compared to the Vimpelcom group.  Our assessment
also reflects that Wind's capital structure is completely ring-
fenced from Vimpelcom," S&P added.

S&P's base case for Wind assumes:

   -- Revenue decline of about 7% in 2014, mainly resulting from
      the re-pricing of its customer base following the
      promotions in 2013, moderating to about 3% in 2015, as S&P
      anticipates that data growth will largely offset the
      decline in voice and SMS revenues.

   -- As a result, S&P forecasts EBITDA margins falling slightly
      to around 38% (translating to about 41% on an adjusted
      basis), supported somewhat by tight operating cost control
      measures.

   -- Wind's cell towers will be sold for about EUR500 million-
      EUR600 million and rented from the new owner.  This
      supports liquidity but is broadly neutral for margins and
      leverage.

   -- Capex-to-sales ratio of 17%-18%, mainly reflecting
      continued investments in increasing LTE coverage.

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

   -- Debt to EBITDA of 5.7x up from about 5.4x in 2013;
   -- FFO to debt of 11%;
   -- FOCF to debt of about 3% in 2015; and
   -- EBITDA interest coverage increasing to about 2.8x in 2015
      from about 2.5x in 2013.

The negative outlook reflects the potential that S&P could lower
the rating on Wind by one notch over the next 12 months as a
result of S&P lowering its SACP assessment to 'b' from 'b+'.
This could occur if Wind's business positions show further
weakening.

S&P currently sees Wind's business risk profile at the lower end
of the "satisfactory" range under its criteria.  Given Wind's
meaningful leverage and limited free cash flow generation, S&P
anticipates that a downward revision of our assessment of its
business will likely result in a lower SACP of 'b'.

S&P assess, however, that Wind will likely remain a moderately
strategic subsidiary of Vimpelcom over the next 12 months.  In
accordance with S&P's criteria, the corporate credit rating on a
"moderately strategic" subsidiary is one notch higher than its
SACP, as long as the parent is rated at least two notches higher
than the SACP.

Based on Wind's stand-alone performance, S&P may lower the rating
on Wind if it continues to post meaningful revenue declines in
the mid-to-high-single digits, and weaker profitability.  For
example, S&P will likely lower the SACP if it sees that Wind's
lack of substantial 4G coverage or quad play offers causes its
subscriber churn rate to rise.  S&P thinks that a lack of
stabilization in Wind's performance will be an indication of
competitive advantage that is lower than S&P has assessed before.
S&P may also lower the rating if continued operating pressures
result in adjusted leverage increasing to more than 6x or if S&P
sees a rising risk of covenant breach without Wind or Vimpelcom
taking offsetting steps such as an equity injection or
renegotiation.

"We may revise the outlook to stable if we see meaningful
improvement in Wind's performance in 2015--notably stabilization
in its mobile unit in terms of pricing and maintenance of market
share.  This would also require maintenance of adjusted EBITDA
margins of more than 40% and debt to EBITDA not meaningfully
higher than 5.5x, as well as an improvement in covenant headroom
to the 10% minimum range the company had before the outlook
revision.  While this level would usually not be sufficient to
restore an "adequate" liquidity profile, we believe that
Vimpelcom's stronger credit quality and track record of helping
Wind with its capital raising gives Wind some leeway," S&P noted.

S&P might also consider revising the outlook to stable if it
reassess Wind as a "strategically important" subsidiary to
Vimpelcom.  This would require more evidence of integration or
implicit support between Vimpelcom and Wind.



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


ALTICE SA: Moody's Puts '(P)B1' CFR on Review for Downgrade
-----------------------------------------------------------
Moody's Investors Service placed the (P)B1 Corporate Family
Rating (CFR) of Altice S.A. and the B1 CFR and the B1-PD
Probability of Default Rating (PDR) of its Altice International
S.a.r.l subsidiary under review for downgrade. The (P)B3 debt
ratings of senior notes at Altice, the B1 senior secured debt
ratings at Altice International's Altice Financing S.A. financing
subsidiary and the B3 senior notes ratings at Altice Finco S.A.,
another financing vehicle of Altice International were also
placed under review for downgrade. Ratings for Altice's
Numericable Group S.A. subsidiary, including the (P) Ba3 senior
secured debt ratings at Numericable remain unchanged.

The rating actions follow confirmation that Altice has signed,
through its Altice Portugal S.A. subsidiary ("Altice Portugal",
unrated), a definitive agreement to purchase the Portuguese
assets of Portugal Telecom from Oi S.A. ("Oi", Ba1, negative) for
a headline purchase price of EUR7.4 billion on a cash and debt
free basis. Altice Portugal is indirectly wholly owned by Altice
International and ultimately by Altice and holds Altice's
currently owned assets in Portugal. According to Altice the
potential acquisition is fully financed. The assets to be
acquired comprise the existing business of Portugal Telecom
outside of Africa and exclude Portugal Telecom's Rio Forte debt
securities, Oi treasury shares and Portugal Telecom financing
vehicles. Moody's understands that Altice expects to finance the
transaction, net of existing debt and other purchase price
adjustments via existing cash and new debt. The purchase price
includes EUR 500 million consideration related to the future
revenue generation of Portugal Telecom. Moody's generally views
such earn-out obligations as debt equivalent.

The transaction remains amongst other things subject to approval
by the shareholders of Portugal Telecom Part, SGPS,S.A.
(unrated), which owns a substantial minority stake in Oi at an
EGM to be called in due course and to standard regulatory
approvals for a transaction of this nature.

Ratings Rationale

The review for downgrade reflects the negative impact this all-
debt financed transaction will have on Altice's leverage, which
could increase to a level visibly above 5.5x as measured by the
Debt/EBITDA ratio (Moody's definition) on a fully consolidated
basis at the Altice S.A. level, pro forma for the Portugal
Telecom transaction and Altice's recently closed acquisition of
SFR S.A. (unrated) through its Numericable subsidiary. Moody's
also sees considerable integration risks as Altice's small
entrepreneurial central management group integrates a string of
recent acquisitions.

Against this background, Moody's review will assess the impact of
the ultimate corporate and financing structure for the planned
acquisition on the leverage and liquidity of Altice and its rated
subsidiaries as well as the benefits that further scale and scope
could bring to Altice's operations. As it stands, Moody's expects
any downgrade to Altice's and Altice International's CFRs to be
limited to one notch. The agency aims to conclude the review in
short order.

Altice's ratings could be downgraded if amongst other things the
company's Debt/EBITDA ratio (as defined by Moody's) is not
maintained at or below 5.5x and those of Altice International
would come under downgrade pressure if the ratio exceeds 5.0x.
The ratings for Altice and Altice International have been placed
under review for downgrade and therefore a near-term upgrade of
the CFR is unlikely to occur. That said, over time positive
pressure on Altice's ratings could develop, if company's leverage
were to fall to well below 4.5x (on a fully-consolidated basis)
on a sustainable basis combined with visible levels of free cash
flow generation. A leverage level sustained well below 4.0x and
evidence of visible levels of free cash flow generation could
lead to upgrade pressure on Altice International.

The principal methodology used in these ratings was Global
Telecommunications Industry published in December 2010. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Altice S.A. is a Luxembourg-based holding company, which through
its subsidiaries Numericable Group S.A. and Altice International
S.A. operates a multinational telecommunications and cable
business. Numericable Group operates in France while Altice
International currently has a presence in four regions --
Dominican Republic, Israel, Western Europe and the French
Overseas Territories. The company is controlled indirectly by
French entrepreneur Patrick Drahi.


TRITON III: Moody's Affirms 'B3' Corporate Family Rating
--------------------------------------------------------
Moody's Investors Service affirmed Triton III No. 14 S.a.r.l.'s
(the holding company for Befesa Medio Ambiente Group, BMA) B3
Corporate Family Rating (CFR) and B3-PD Probability of Default
Rating (PDR). Concurrently, Moody's raised the group's senior
secured notes rating, with the instrument being issued by finance
vehicle Zinc Capital S.A., to B2 from B3 and affirmed the Caa2
rating on the senior subordinate PIK-toggle note issued by
finance vehicle Bilbao (Luxembourg) S.A.. The rating outlook on
all ratings remains stable.

Ratings Rationale

The rating upgrade of the EUR300 million senior secured notes
issued by Zinc Capital SA to B2 from B3 reflects Moody's view
that liquidity within the ring-fenced Befesa Zinc group is better
than initially expected with cash and equivalents as of September
2014 at around EUR37 million. This represents about 15% of
divisional sales, a level that Moody's deem solid also when
considering sizeable intra-year working capital swings. The
rating level one notch above the group's corporate family rating
reflects the material amount of subordinated debt within the BMA
group, pertaining to EUR150 million PIK-toggle notes and a EUR48
million vendor note that provide first loss cushion.

The affirmation BMA's CFR at B3 reflects Moody's view that
improving profitability should allow BMA to achieve credit
metrics that position it solidly in the current rating category
such as its debt/EBITDA (as adjusted by Moody's) moving to below
6x by year end 2014, with further improvements expected for 2015.
Higher volumes on the back of capacity additions, a turnaround in
Zinc prices since mid-2014 on the back of mine closures and a
subsequently improved supply and demand balance in the global
Zinc market, in combination with material cost savings in excess
of EUR20 million for full year 2014 are the key drivers of
improving performance. Moody's expect conditions in end customer
industries, such as automotive and construction, to remain at
least stable for the next 18-24 months, which should help to
limit downside risk for Zinc prices. However, these positives are
balanced by continued investment spending which will moderately
drive up debt levels next year and limit the company's ability to
generate free cash flow.

The rating continues to reflect BMA's significant exposure to
zinc prices movements. While the company hedges about 60-70% of
its zinc equivalent volumes, Moody's note that the recent move
away from swaps to options with a strike price at EUR1.300/ton in
H1 2015 and EUR1.250/ton in H2 2015 and H1 2016 (currently out of
the money) heightens the degree of volatility in the group's
profitability going forward. Debt protection metrics might weaken
significantly if Zinc prices were to fall towards levels of the
strike price, which however in the short term appears rather
unlikely considering current market prices at around
EUR1,800/ton. Notwithstanding that the protection through options
safeguards a minimum level of cash generation to meet basic cash
obligations, including debt service, Moody's nevertheless
conclude that the move away from swaps to options appears to
indicate a more aggressive approach to managing the group's Zinc
price exposure. In this regard, expected leverage at around 5.5x
in 2015 still appears high and is reflected in the B3 rating.

More fundamentally, the B3 CFR balances the group's fairly small
size (EUR631 million revenues in LTM period to September 2014),
continued elevated leverage and exposure to zinc price volatility
with its leading niche market position in the European steel dust
and aluminum waste recycling markets and sound historical
operating performance and expected improvements in operating
profitability in 2015. The group's competitive position benefits
from high barriers to market entry, including high investment
costs, support from environmental regulation and proprietary
technological know-how.

The stable outlook reflects Moody's expectation that forecasted
improvements in operating profitability over 2015 will
comfortably position Befesa in its current rating category with
Moody's adjusted debt/EBITDA expected at around 5.5x next year.

BMA's consolidated liquidity profile is adequate. Internal
sources include cash on hand of EUR58 million as per September
2014, of which EUR37 million are located at the level of Befesa
Zinc. In addition, Moody's note that BMA has access to a
revolving credit facility ("RCF") amounting to EUR25 million,
which will however reduce to EUR20 million in mid-2015. These
sources as well as organic cash flow generation should be
sufficient to fund working cash requirements, capex forecasted at
around EUR50 million next year, and scheduled debt amortization.

The B2 rating assigned to the EUR300 million senior secured notes
issued by Zinc Capital SA, proceeds of which have been on-lent
via a proceeds loan to Befesa Zinc, is one notch above BMA's
corporate family rating. This reflects the bond's senior ranking
ahead of the EUR150 million PIK-toggle Notes issued by Bilbao
Luxemburg SA and a vendor loan note issued outside the restricted
group. Befesa Zinc and its restricted subsidiaries are not
guaranteeing any debt outstanding at the level of Bilbao
Luxembourg S.A. or Befesa Medio Ambiente SL. At the same time,
Befesa Zinc could pay dividends or provide intercompany loans to
its parent company, Befesa Medio Ambiente SL, subject to the
limitations included in the EUR300 million senior secured bond,
issued by Zinc Capital SA. Moody's consider the debt issued by
the Befesa Zinc group and that of Befesa Medio Ambiente, largely
pertaining to a EUR135 million term loan, a EUR25 million
revolving credit facility and a EUR25 million guarantee facility,
as ranking pari passu. The Caa2 rating on the PIK-toggle notes
reflects their junior ranking behind sizeable debt at the level
of Befesa Zinc and Befesa Medio Ambiente, as well as non-debt
claims at the operating companies pertaining to leases and trade
payables.

An upgrade of the CFR to B2 would depend on the group achieving
debt/EBITDA below 5.0x on a sustainable basis helped by positive
free cash flow generation after expansion capex applied to debt
reduction. In addition, continued visibility for the next 18-24
months with regards to the availability of hedging contracts in
line with BMA's hedging policy would be a prerequisite for any
rating upgrade.

The ratings could be downgraded if the group's liquidity position
eroded and its operating performance deteriorated for a
protracted period of time. Quantitatively, a downgrade could
result from an increase of consolidated leverage above 6x
debt/EBITDA (as adjusted by Moody's), EBIT/interest expense
falling to below 1.5x and negative free cash flow generation over
a longer time period.

Upgrades:

Issuer: Zinc Capital S.A.

  Senior Secured Regular Bond/Debenture (Local Currency) May 15,
  2018, Upgraded to B2 from B3

Affirmations:

Issuer: Triton III No. 14 S.a.r.l.

  Probability of Default Rating, Affirmed B3-PD

  Corporate Family Rating, Affirmed B3

Issuer: Bilbao (Luxembourg) S.A.

  Senior Subordinated Regular Bond/Debenture (Local Currency)
  Dec 1, 2018, Affirmed Caa2

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

Triton III No. 14 is a Luxembourg-based holding company, which
indirectly owns 94% of Befesa Medio Ambiente, a Spanish company
specializing in the integral management and recycling of
industrial waste through its three divisions (1) steel dust
recycling (40% of revenues); (2) aluminium waste recycling (43%)
and (3) industrial waste management (17%). The group is present
in 11 countries with a focus on Europe. In the last twelve months
ending September 2014, the group generated revenues of EUR631
million.



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


GROSVENOR PLACE: Moody's Affirms 'Ba2' Rating on Class E Notes
--------------------------------------------------------------
Moody's Investors Service announced that it has taken rating
actions on the following classes of notes issued by Grosvenor
Place CLO I B.V.:

EUR47.0 million (current balance of EUR17.5M) Class B Senior
Floating Rate Notes due 2021, Affirmed Aaa (sf); previously on
February 6, 2014 Upgraded to Aaa (sf)

EUR19.0 million Class C Deferrable Floating Rate Notes due 2021,
Upgraded to Aaa (sf); previously on February 6, 2014 Upgraded to
A2 (sf)

EUR14.5 million Class D Deferrable Floating Rate Notes due 2021,
Upgraded to A1 (sf); previously on February 6, 2014 Affirmed Ba1
(sf)

EUR10.0 million (current balance of EUR5.9M) Class E Deferrable
Floating Rate Notes due 2021, Affirmed Ba2 (sf); previously on
February 6, 2014 Affirmed Ba2 (sf)

Grosvenor Place CLO I B.V., issued in June 2006, is a multi-
currency Collateralised Loan Obligation ("CLO") backed by a
portfolio of mostly high yield European senior secured loans
managed by CQS Cayman Limited Partnership. This transaction's
reinvestment period ended in July 2012. At present, all
outstanding rated liabilities are denominated in EUR, whereas
roughly 93.7% of the performing collateral assets are denominated
in EUR, with the balance denominated in USD and GBP.

Ratings Rationale

According to Moody's, the upgrade of Class C and Class D notes is
primarily a result of the continued amortization of the portfolio
and subsequent increase in the collateralization ratios since the
last rating action in February 2014 based on December 2013 data.
Moody's notes that rated liabilities paid down by EUR112.4
million on the last 4 quarterly payment dates, leading to a
significant increase in the overcollateralization ratios (or "OC
ratios") of the notes. As per the trustee report dated October
2014, the Class C and D OC ratios are reported at 156.98% and
132.17%, compared to December 2013 levels of 129.03% and 117.68%
respectively. These reported increases in OC ratios do not take
into account the aggregate EUR40.8 million pay-down of rated
notes on the October 2014 payment date.

Reported WARF has deteriorated from 2839 to 2959 between December
2013 and October 2014, while reported defaults have reduced from
EUR11.2 million to EUR0.5 million during this period. The
diversity score has reduced sharply from 17 to 9 in line with the
substantial amortization of the collateral pool.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base
case, Moody's analyzed the underlying collateral pool as having a
EUR pool with performing par and principal proceeds balance of
EUR75.686 million and defaulted par of EUR0.309 million, a GBP
pool with performing par of GBP 3.532 million, a weighted average
default probability of 24.45% (consistent with a WARF of 3784
over a weighted average life of 3.5 years), a weighted average
recovery rate upon default of 43.49% for a Aaa liability target
rating, a diversity score of 9 and a weighted average spread of
4.41%.

In its base case, Moody's addresses the exposure to obligors
domiciled in countries with local currency country risk bond
ceilings (LCCs) of A1 or lower. Given that the portfolio has
exposures to 24.3% of obligors in Spain, whose LCC is A1, Moody's
ran the model with different par amounts depending on the target
rating of each class of notes, in accordance with Section 4.2.11
and Appendix 14 of the methodology. The portfolio haircuts are a
function of the exposure to peripheral countries and the target
ratings of the rated notes, and amount to 5.52% and 1.22% for
Class C and Class D notes respectively.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool. For a Aaa liability target rating,
Moody's assumed that 83.6% of the portfolio exposed to senior
secured corporate assets would recover 50% upon default, while
the non first-lien loan corporate assets would recover 15%. In
each case, historical and market performance and a collateral
manager's latitude to trade collateral are also relevant factors.
Moody's incorporates these default and recovery characteristics
of the collateral pool into its cash flow model analysis,
subjecting them to stresses as a function of the target rating of
each CLO liability it is analyzing.

Moody's notes that the October 2014 trustee report has been
recently published; key portfolio metrics such as WARF,
proportion of Caa rated assets, diversity score and weighted
average spread are materially unchanged from September 2014 data.

Methodology Underlying the Rating Action:

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

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

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

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

Additional uncertainty about performance is due to the following:

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

2) Around 26.7% of the collateral pool consists of debt
obligations whose credit quality Moody's has assessed by using
credit estimates.

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

4) Foreign currency exposure: The deal has a modest exposure to
non-EUR denominated assets. Volatility in foreign exchange rates
will have a direct impact on interest and principal proceeds
available to the transaction, which can affect the expected loss
of rated tranches.

5) Lack of portfolio granularity: The performance of the
portfolio depends on the credit conditions of a few large
obligors. Because of the deal's low diversity score and lack of
granularity, Moody's substituted its typical Binomial Expansion
Technique analysis by a simulated default distribution using
Moody's CDOROMTM software

In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
other Moody's analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision


JUBILEE CDO VI: Moody's Raises Rating on Class E Notes to 'B1'
--------------------------------------------------------------
Moody's Investors Service has taken a variety of rating actions
on the following notes issued by Jubilee CDO VI B.V.:

EUR100 million (current outstanding balance EUR 38.4M) Class A1-
a Senior Secured Floating Rate Notes due 2022, Affirmed Aaa (sf);
previously on May 13, 2014 Affirmed Aaa (sf)

EUR25 million Class A1-b Senior Secured Floating Rate Notes due
2022, Affirmed Aaa (sf); previously on May 13, 2014 Upgraded to
Aaa (sf)

EUR112.5 million (current outstanding balance EUR 50.9M) Class
A2-a Senior Secured Floating Rate Notes due 2022, Affirmed Aaa
(sf); previously on May 13, 2014 Affirmed Aaa (sf)

EUR12.5 million Class A2-b Senior Secured Floating Rate Notes
due 2022, Affirmed Aaa (sf); previously on May 13, 2014 Upgraded
to Aaa (sf)

EUR13 million (current outstanding balance EUR 6.6M) Class A3
Senior Secured Floating Rate Notes due 2022, Affirmed Aaa (sf);
previously on May 13, 2014 Affirmed Aaa (sf)

EUR32 million Class B Senior Secured Floating Rate Notes due
2022, Upgraded to Aaa (sf); previously on May 13, 2014 Upgraded
to Aa2 (sf)

EUR27 million Class C Senior Secured Deferrable Floating Rate
Notes due 2022, Upgraded to A1 (sf); previously on May 13, 2014
Upgraded to Baa1 (sf)

EUR21 million Class D Senior Secured Deferrable Floating Rate
Notes due 2022, Upgraded to Baa2 (sf); previously on May 13, 2014
Upgraded to Ba2 (sf)

EUR17 million Class E Senior Secured Deferrable Floating Rate
Notes due 2022, Upgraded to B1 (sf); previously on May 13, 2014
Affirmed B3 (sf)

EUR3.15 million Class Q (current outstanding balance EUR 0.5M )
Combination Notes due 2022, Upgraded to A2 (sf); previously on
May 13, 2014 Upgraded to Baa3 (sf)

EUR6 million Class S (current outstanding balance EUR 1.9M)
Combination Notes due 2022, Upgraded to Aa2 (sf); previously on
May 13, 2014 Upgraded to A2 (sf)

Jubilee CDO VI B.V., issued in August 2006, is a Collateralised
Loan Obligation ("CLO") backed by a portfolio of mostly high
yield European loans. The portfolio is managed by Alcentra
Limited and is predominantly composed of senior secured loans.
This transaction exited its reinvestment period on September 20,
2012.

Ratings Rationale

The rating actions taken on the notes are primarily a result of
deleveraging of the senior notes and subsequent improvement of
over-collateralization ratios ("OC") since the rating action in
May 2014. Classes A1-a, A2-a and A3 notes have paid down in total
by EUR47.7 million at the last payment date in September 2014.

As a result of the deleveraging, over-collateralization has
increased. As per the latest trustee report dated October 2014,
the Classes A/B, C and D OC ratios are reported at 151.45%,
130.18% and 117.37%, respectively, compared to 132.52%, 119.02%
and 110.28% in the March 2014 report used for the May rating
action.

The ratings of the combination notes address the repayment of the
rated balance on or before the legal final maturity. For Class Q,
the 'rated balance' is equal at any time to the principal amount
of the combination note on the issue date minus the aggregate of
all payments made from the issue date to such date, either
through interest or principal payments. For Class S, the 'rated
balance' is equal at any time to the principal amount of the
combination note on the issue date increased by the rated coupon
of 0.25% per annum respectively, accrued on the rated balance on
the preceding payment date minus the aggregate of all payments
made from the issue date to such date, either through interest or
principal payments. The rated balance may not necessarily
correspond to the outstanding notional amount reported by the
trustee.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base
case, Moody's analyzed the underlying collateral pool as having a
performing par and principal proceeds balance of EUR245 million,
defaulted par of EUR13.4 million, a weighted average default
probability of 22.12% (consistent with a WARF of 3098), a
weighted average recovery rate upon default of 45.69% for a Aaa
liability target rating, a diversity score of 22 and a weighted
average spread of 4.04%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool. For a Aaa liability target rating,
Moody's assumed a recovery of 50% of the 87.69% of the portfolio
exposed to first-lien senior secured corporate assets upon
default and of 15% of the remaining non-first-lien loan corporate
assets upon default. In each case, historical and market
performance and a collateral manager's latitude to trade
collateral are also relevant factors. Moody's incorporates these
default and recovery characteristics of the collateral pool into
its cash flow model analysis, subjecting them to stresses as a
function of the target rating of each CLO liability it is
analyzing.

Methodology Underlying the Rating Action:

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

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

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed a lower weighted average spread in the
portfolio. Moody's ran a model in which it lowered the weighted
average spread by 30bp; the model generated outputs that were in
line with the base-case results.

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

Additional uncertainty about performance is due to the following:

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

   * Around 20.54% of the collateral pool consists of debt
obligations whose credit quality Moody's has assessed by using
credit estimates.

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

In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
other Moody's analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision.


ROYAL BANK: S&P Raises Rating on EUR50MM Rente Plus Notes to BB-
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Rente Plus Co. Ltd.'s series 2 notes 3, as well as The Royal Bank
of Scotland N.V.'s Rente Plus notes 5 and 6.  At the same time,
S&P has raised and removed from CreditWatch positive its rating
on Rente Plus Co.'s series 3 notes 4.

S&P has received corrected subordination levels from The Royal
Bank of Scotland N.V. for four series of Rente Plus.  According
to the arranger's latest information, the subordination levels
are 5.43% for Rente Plus Co.'s series 2 notes 3, and 5.59% for
series 3 notes 4, with 7.75% for The Royal Bank of Scotland
N.V.'s notes 5, and 6.27% for notes 6.

S&P has applied its criteria for corporate collateralized debt
obligations (CDOs) to these tranches.  Therefore, S&P has run its
analysis on CDO Evaluator model 6.3, which includes the top
obligor and industry test for synthetic rated
overcollateralization (SROC) transactions.

Since S&P's previous review, the underlying portfolio has
experienced positive rating migration.  As a result, following
the application of S&P's corporate CDO criteria, it has raised
its ratings on these four tranches.  S&P has raised its ratings
to the level at which SROC exceeds 100% and meets the minimum
cushion under S&P's criteria.

These tranches reference static synthetic portfolios of corporate
credits arranged by The Royal Bank of Scotland N.V.

RATINGS LIST

Class       Rating            Rating
            To                From

Ratings Raised

Rente Plus Co. Ltd.
EUR135 Million Rente Plus Notes 3 Series 2

            BBB- (sf)         CCC- (sf)

The Royal Bank of Scotland N.V.
EUR120 Million Rente Plus Notes 5
(Including EUR20 Million Tap Issuance)

            BBB+ (sf)         BB+ (sf)

The Royal Bank of Scotland N.V.
EUR50 Million Rente Plus Notes 6

            BB- (sf)          B- (sf)

Rating Raised and Removed From CreditWatch Positive

Rente Plus Co. Ltd.
EUR60 Million Rente Plus Notes 4 Series 3

            BB+ (sf)          B+ (sf)/Watch Pos



===============
S L O V E N I A
===============


MAKSIMA HOLDING: Declared Bankrupt; Faces Trading Suspension
------------------------------------------------------------
SeeNews reports that Maksima Holding was set to be suspended from
trading on Ljubljana's entry market from Wednesday, Dec. 10, due
to the start of bankruptcy proceeding.

Ljubljana District Court declared Maksima Holding bankrupt on
Dec. 5, SeeNews relates.

The company failed to repay EUR2.058 million (US$2.55 million) to
Gorenjska Banka while another creditor, Banka Celje, initiated
insolvency proceeding in September, SeeNews discloses.

According to SeeNews, the supervisory board found the company
insolvent in October and instructed the management board to
prepare a financial restructuring plan.

The insolvency administrator of Maksima Holding will be Kristijan
Anton Kontarscak, SeeNews says.

At the end of October, Maksima Holding had a mere EUR5.76 million
worth of assets, of which EUR4.5 million in securities, SeeNews
states.  Its equity was a negative EUR1.35 million, SeeNews
notes.

Maksima is a Slovenian financial company.



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


GOLDCAR RENTAL: Moody's Assigns 'B2' Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service, has assigned a B2 corporate family
rating (CFR) and B3-PD probability of default rating to Car
Rentals Parentco, S.L.U. (a holding company of Goldcar Rental
Group, or the company). Concurrently, Moody's have assigned a
(P)B2 rating to a EUR125 million revolving credit facility (RCF)
and a EUR50 million Term Loan A facility, both with 5 year
maturity, and to a EUR275 million Term Loan B facility due after
5.5 years. The outlook on all ratings is stable. All facilities
will be issued by Car Rentals Subsidiary, S.L.U., a wholly owned
direct subsidiary of Car Rentals Parentco, S.L.U., in support of
the acquisition of Goldcar by funds controlled by
Investindustrial.

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

Ratings Rationale

Goldcar's B2 Corporate Family Rating (CFR) reflects the
company's: (1) high concentration risk with business focus on
Spanish leisure car rental market and 41% of FY 2013 revenues
generated in top 3 locations; (2) exposure to the inherently
cyclical European Mediterranean leisure car rental industry; (3)
operation in a strong competitive environment driven by online
sales decided on price and car availability; (4) highly seasonal
fleet purchase conditions and (5) relatively small size compared
to international peers.

The CFR also reflects Goldcar's (1) leading market position with
24% of share of the Spanish leisure car rental segment; (2)
proven track record of resilient financial performance through
the recent cyclical downturn, outperforming local and
international competition; (3) lean operating structure and high
occupancy rates leading to best-in-class Moody's adjusted EBITDA-
margins of around 60%; (4) focus on strict working capital and
capital expenditure management to adjust to large seasonal wings
in demand and (5) modest expected financial leverage of 3.4x at
the end of FY 2014 combined with the company's good cash flow
generation, interest coverage and liquidity profile.

Goldcar positions itself as the pure "low cost" player in the
Spanish car rental market, targeting mainly the leisure segment
driven by inbound international tourism. With a focus on low car
rental tariffs, the company relies on lean operational cost
structures, a high fleet utilization rate and relatively high
share of ancillary services (insurance, fuel) representing
approximately 57% of total revenue in FY 2013. The group reported
solid financial performance in the period between 2006 and 2013,
with revenues growing at a compounded annual growth rate of 15%.
Since 2008, Goldcar has outgrown Europcar Groupe S.A. (B3,
stable), The Hertz Corporation (B1, stable) and Avis Budget
Group, Inc (Ba3, stable) to become market leader in the Spanish
leisure segment with a market share of 24%. Goldcar recently
started its international expansion with the opening of offices
in Portugal (2011) and Italy (2012).

The company's focus on the leisure segment's largest and most
profitable locations results in a large revenue concentration
with Goldcar's top 3 and top 10 offices generating 41% and 68% of
FY 2013 revenue respectively. The company's recent
internationalization with office openings in Portugal and Italy
have reduced the top 3 concentration down from 58% in FY 2010 and
is expected to continue to decrease as the company continues its
selective roll-out program.

At the end of FY 2014, Moody's expects adjusted Debt/EBITDA ratio
to be 3.4x (and 2.6x on a net debt basis). Due to seasonal
fluctuations, partly financed through drawings under the ?125
million RCF, the leverage is expected to increase to 4.2x at its
peak in June 2015. Goldcar's strong Moody's adjusted EBITDA
margin of 60%, and the company's strict capital expenditure and
working capital management with a focus on timing and cost
optimization of the fleet acquisitions and disposals result in a
strong cash flow profile, albeit with large seasonal swings.

Moody's consider Goldcar's near-term liquidity position, pro
forma for the transaction, to be adequate. This is based on an
opening cash balance of about ?106 million, with additional
liquidity for working capital stemming from a ?125 million RCF,
which are undrawn at closing. The size of the RCF is expected to
cover the swings in working capital, based on historical
liquidity requirements to finance the seasonality of the fleet.
The term loan facilities will benefit from two maintenance
covenants (net leverage and interest cover) tested quarterly and
set with a minimum 30% headroom.

The Term Loan A, Term Loan B facilities and RCF will benefit from
security interest in the collateral on a pari-passu basis and the
(P)B2 instrument ratings on all facilities are in line with the
CFR. A new SPV (Spanish FleetCo) will be set up, to purchase
vehicles from manufacturers which will then lease these to
Goldcar Spain. A share pledge would be granted to lenders over
the newly established FleetCo, that will execute pledges with
respect to transfer of possession over its intra-group
receivables, trade receivables, buy back agreements from vehicle
manufacturers and certain bank accounts.

Outlook

The stable outlook reflects Moody's view that the company's
operating performance will continue to benefit from strong
operating margins and cash flow performance, with modest
deleveraging expectations.

What Could Change the Ratings Up

Positive pressure could arise as a result of the company's
strategy to roll-out a international office network in selected
countries to improve geographical diversification, reducing the
company's current concentration on a few top locations in Spain.
Quantitatively, Moody's would consider an upgrade if debt/EBITDA
falls below 3x at year-end and retained cash flow to net debt
(RCF/net dent) remains above 25%.

What Could Change the Ratings Down

The rating would most likely come under pressure as a result of a
significant slowdown in the European economies impacting
Mediterranean tourism destinations. Credit metrics that could
indicate downward rating pressure include debt/EBITDA exceeding
4.5x at year-end or weakening of liquidity profile with RCF/net
debt falling to around 15%.

Principal Methodologies

The principal methodology used in these ratings was Global
Equipment and Automobile Rental Industry published in December
2010. Other methodologies used include Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009.

Founded in 1985 and headquartered in Spain, Goldcar is a leading
Spanish car rental operator with some presence in Portugal, Italy
and Malta. The company has a network of 53 rental offices mainly
targeting key southern European airports, supplemented with city
and train stations offices. In FY 2013, the company reported
sales and EBITDA of EUR203 million and EUR93 million respectively
and employed on average 588 full-time employees.



===========
S W E D E N
===========


NORTHLAND RESOURCES: Moody's Cuts Prob. Default Rating to D-PD
--------------------------------------------------------------
Moody's Investors Service has downgraded the probability of
default rating (PDR) of Northland Resources AB ('Northland') to
D-PD from C-PD, while its corporate family rating (CFR) has been
affirmed at C. Moody's has also downgraded the rating on the
company's $335 million of 15% senior secured notes with warrants
maturing in 2019 issued by Northland to C (LGD5(75%)). There is
no ratings outlook and Moody's will subsequently withdraw all
Northland's ratings.

Ratings Rationale

The rating action follows the Swedish Lulea District Court's
approval, on 8th December 2014, of Northlands's bankruptcy
request made by the company on the same date. The request was
filed by the company after its Board of Directors, following
consultations with the administrator of the reorganization in
Sweden, has concluded that the conditions for a continued
reorganization did no longer exist and a bankruptcy was the only
alternative at hand. Given the company has already suspended all
its mining operations on 7th of October 2014, and considering the
current challenging outlook on the iron ore market, Moody's has
assessed that the expectation of asset recovery value for
bondholders has deteriorated further, and has accordingly
downgraded the rating on the senior secured notes to C from Ca.

A bankruptcy is among the defined conditions by Moody's for a
default and subsequent withdrawal of ratings

Principal Methodologies

The principal methodology used in this rating was Global Mining
Industry published in August 2014. Other methodologies used
include Loss Given Default for Speculative-Grade Non-Financial
Companies in the U.S., Canada and EMEA published in June 2009.

Corporate Profile

Northland, a subsidiary of publicly listed Northland Resources
SA, is a special purpose vehicle created to manage the
construction and development of the Kaunisvaara iron ore project
in northern Sweden. The Kaunisvaara project comprises the Tapuli
mine, the Sahavaara mine, a dual-line processing plant and a
fully integrated logistics solution for the delivery of iron ore
concentrate to the Port of Narvik in Norway.



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


GOLDEN GATE: DGF Appoints Valerii Yermak as Liquidator
------------------------------------------------------
Ukrainian News Agency reports that the Deposit Guarantee Fund
has appointed Valerii Yermak as the liquidator of Golden Gate
bank.

On Dec. 5, the DGF launched the liquidation of the bank,
Ukrainian News Agency relates.

According to Ukrainian News Agency, the DGF has passed a part of
assets and liabilities of Golden Gate bank to Standard bank.

On Dec. 4, the central bank decided to liquidate Golden Gate
bank, Ukrainian News Agency relates.

Golden Gate Bank is based in Kharkiv.


UKRAINE: Needs to Fill US$15-Bil. Shortfall to Avoid Collapse
-------------------------------------------------------------
Peter Spiegel in Brussels and Roman Olearchyk at The Financial
Times report that The International Monetary Fund has identified
a US$15 billion shortfall in its bailout for war-torn Ukraine and
warned western governments the gap will need to be filled within
weeks to avoid financial collapse.

According to the FT, the additional cash needed would come on top
of the US$17 billion IMF rescue announced in April and due to
last until 2016.  Senior western officials involved in the talks
said there is only tepid support for such a sizeable increase at
a time Kiev has dragged its feet over the economic and
administrative reforms required by the program, the FT relates.

People briefed on the IMF warning said the fiscal gap has opened
up because of a 7% contraction in Ukraine's gross domestic
product and a collapse in exports to Russia, the country's
biggest trading partner, leading to massive capital outflows and
a rundown in central bank reserves, the FT relays.

The breakaway regions of the east accounted for nearly 16% of
Ukraine's economic output before the start of hostilities, the FT
notes.

Without additional aid, Kiev would have to massively slash its
budget or be forced to default on its sovereign debt obligations,
the FT says.  Since the bailout program began in April, Ukraine
has received US$8.2 billion in funding from the IMF and other
international creditors, the FT discloses.

According to the FT, Pierre Moscovici, the EU economics chief,
said the European Commission was weighing a third rescue program
on top of the EUR1.6 billion (US$2 billion) it has already
committed to Kiev; the Ukrainian government has requested an
additional EUR2 billion from Brussels.

Under IMF rules, the fund cannot distribute aid unless it has
certainty a donor country can meet its financing obligations for
the next 12 months, meaning the fund is unlikely to be able to
send any additional cash to Kiev until the US$15 billion gap is
closed, the FT states.

An IMF mission is currently in Kiev for talks with the government
on the future of the program, the FT relates.



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


ENQUEST PLC: Moody's Affirms 'B1' Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service has affirmed B1 corporate family rating
and B1-PD probability of default rating of EnQuest plc and
converted to definitive B3/LGD 5 rating on its senior notes. The
outlook on the ratings is changed to negative from stable.

"The negative outlook reflects Moody's expectation that lower oil
prices will translate in lower earnings and weaker leverage
metrics in 2015, even as EnQuest is set to deliver strong growth
in production volumes on the back of its Alma/Galia field
development scheduled to come on stream in mid 2015", said Elena
Nadtotchi, Vice President and Senior Credit Officer and the lead
analyst on EnQuest plc at Moody's. "The B1 corporate family
rating is materially supported by the expectation that EnQuest
will strongly execute on its large development project at Kraken
and deliver sustained high level of growth in production in 2016,
that will drive the recovery in the leverage profile in the next
12-18 months".

Ratings Rationale

The negative outlook on the ratings reflects the expectation of
weaker financial metrics in 2015, including debt/EBITDA closer to
3x, as the projected growth in production in the next 12 months
will not fully offset the decline in the average realised oil
price on Moody's current assumptions. Consequently, Moody's
expect that EnQuest will operate at a lower level of financial
flexibility in 2015, including reduced headroom under its
financial covenants. The affirmation of B1 corporate family
rating and the assignment of definitive B3 rating on the senior
notes reflects the assumption that EnQuest will proactively
manage its requirements to fund negative FCF generation in 2015,
as it continues to invest, and that the sustained growth in
volumes from its new project at Kraken will deliver a recovery in
the financial profile in 2016, even if oil prices do not recover.
Proactive cost management and hedging of commodity risks will
also help to reduce the pricing pressures during the transition
period in 2015.

EnQuest's B1 CFR reflects the relatively small scale of its
proved reserves and cash flow producing assets as well as a
certain degree of portfolio concentration in a limited number of
fields in the UKCS. The solid positioning of the rating within
the B-category is supported by the strong, albeit relatively
short, operating track record, high level of technical and
management ability and cost efficiency the group has delivered
during the growth of its operations since its inception in 2010,
as well as the strong growth expected in production in 2015-2016.
With most of its reserves and production in the UK, EnQuest
benefits from the stable fiscal regime and low political risk
associated with operating in the UKCS. The tax incentives from
the UK government in recent years to operate on the UKCS also
mean that EnQuest does not expect to pay any cash tax in the
medium term.

EnQuest is a high-growth business and its B1 rating is materially
underpinned by the expectation of sustained high level of growth
in production. Moody's assess positively EnQuest's strategy of
developing licences that already have producing or near-
production fields, through a focus on field life extensions and
marginal field solutions, which reduces the group's operating
risk profile relative to similarly sized US peers with larger
focus on exploration. In addition, the almost entirely Brent oil
production enables the group to achieve a high realised price for
its production. EnQuest is also the operator on the majority of
its licences, enabling it to benefit from an increased level of
oversight on its expenditure and operational strategy on these
fields. EnQuest also has a track-record of successful
acquisitions and current lower price environment may bring
opportunities to add to its portfolio.

In 2015/2016, EnQuest faces a high level of investment and
material execution risk as it looks to double the group's
production levels through bringing on-stream two key projects,
Kraken (2017) and Alma & Galia (2015). These risks are mitigated
by solid economics of the two projects and strong execution by
EnQuest, with the close completion on Alma/Galia project in the
next 6 months, as well as the fact that c.60% of the capital
expenditure on Kraken, has been tendered and awarded. In 2015,
EnQuest will generate negative FCF and will rely on its committed
bank facilities to fund the development of its key Kraken
project.

Liquidity

EnQuest's liquidity is underpinned by a USD1.2 billion revolving
credit facility (RCF), of which USD153 million was utilized for
letters of credit as of the end of June 2014. The facility has
several financial covenants and while EnQuest is managing
commodity price risk proactively, a sustained weakness in the
Brent oil price will reduce headroom under the financial
covenants at the time when the company will need to utilize the
facility to fund its FCF deficit in 2015 (driven by investment in
Kraken).

EnQuest also has access to additional liquidity, as it continues
to add to its reserves and raises efficiency of the operating
assets.

The group does not have any debt maturing before the expiration
of the RCF (October 2019), but it has recognized a USD122.6
million financial liability related to a firm development carry
(as part of the consideration for the stake it acquired in the
Kraken field in 2012), that Moody's expect will expire in early
2015.

Drivers of Rating Change

While Moody's do not see any near-term upgrade pressures, the
continuing expansion the company's reserve base and production
profile, together with a growing level of diversification of its
asset base, that would deliver further operating cash flow growth
and enable the sustainability of its moderate financial profile,
could lead to an upgrade on the B1 rating.

The B1 rating could however come under pressure should (i) there
be material delays and/or cost overruns in the development key
oil fields, such as Kraken; (ii) any significant deterioration in
production levels and/or oil price realisations, which would lead
to more material balance sheet re-leveraging than currently
expected, with debt to EBITDA rising above 2 times for a
sustained period.

The principal methodology used in these ratings was Global
Independent Exploration and Production Industry published in
December 2011. Other methodologies used include Loss Given
Default for Speculative-Grade Non-Financial Companies in the
U.S., Canada and EMEA published in June 2009.


HARBOURVEST: To Pay First Liquidation Payment to Shareholders
-------------------------------------------------------------
Alliance News reports that HarbourVest Senior Loans Europe Ltd
Tuesday said it intends to make its first interim liquidation
distribution, after its shareholders agreed to wind up the
company.

After shareholders approved the move at an extraordinary general
meeting, the company appointed KPMG Channel Islands Ltd as
liquidators, according to Alliance News.

The report notes that the liquidators have said it intends to
make a first interim liquidation payment of 0.2563 pence per
share in December, which represents around 97.2% of the net asset
value of the company.  HarbourVest recognized that it is "lower
than anticipated" but said it was due to an additional provision
being made for a potential tax liability, the report discloses.


ITHACA ENERGY: Moody's Affirms 'B2' Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service has affirmed Ithaca Energy Inc.'s B2
corporate family rating (CFR), the B2-PD probability of default
rating (PDR) rating, and the Caa1 rating for its senior unsecured
notes due 2019 with a loss given default assessment of LGD5
(88%), which are guaranteed on a senior subordinated basis by
certain of its subsidiaries. However, the rating outlook is
changed to negative.

"We changed Ithaca's rating outlook to negative to reflect
increased risk from lower oil prices in 2015, which we expect
will result in lower cash flow with the potential for leverage to
remain elevated even as spending comes down and new production
comes onstream", said Tom Coleman, Senior Vice President. "We
view the company's hedging of a portion of its production,
adequate liquidity sources, and the advanced stages of its Stella
field development as favorable factors, but remain concerned that
further pricing pressure and the risk of delays or other
production disruptions could affect its growth profile and the
pace of leverage reduction."

Ratings Rationale

Ithaca Energy's B2 CFR reflects the company's small scale, high
degree of production concentration, short reserve life, as well
as elevated financial leverage arising from recent reserve
acquisitions and high capital spending on the Greater Stella
Area, its core oil and gas production hub in the UK North Sea.
The Phase 1 development of Stella is expected to come onstream,
probably with a slight delay into the early third quarter of
2015, as construction and commissioning are completed on the FPF-
1 floating production facility. The successful start up is
critical to Ithaca's ability to ramp up production, reduce unit
costs and provide cash flow to reduce debt and fund further
development.

Cash flow support for Ithaca will come from its hedging program,
which extends through mid-2016 and provides revenue support in
the face of lower prices, with approximately 6,300 bbl/day of oil
production hedged via swaps and puts at an average $102/barrel
Brent. The company's liquidity appears adequate, coming from
modest free cash flow, a reserve-based loan (RBL) with
approximately $134 million of availability, an undrawn $100
million corporate facility, and other finance sources, which will
be important as initial amortization of the RBL will commence at
the end of 2015, absent a loan extension.

Moody's expects Ithaca to reduce its leverage in 2015-2016 and
reduce cash operating costs to the area of $40-$45/BOE as Stella
production ramps up, providing good cash margins in the area of
$35-$40/BOE. Production should increase from an average 12,500
BOE/day in 2014 to over 25,000 BOE/day by the end of 2015.
However, if the 30% drop in crude prices since June 2014 is
sustained in 2015, total cash flow will be lower and could delay
leverage reduction and achievement of management's own Net
Debt/EBITDA target of 2.0X over the development cycle.

The Caa1 rating on the senior notes is two notches below the B2
Corporate Family Rating, reflecting the substantial amount of
liabilities in the capital structure that rank senior to the
notes. Guarantees on the notes provided by Ithaca's various
subsidiary guarantors are senior subordinated obligations of
those subsidiaries.

Liquidity Position

Ithaca's liquidity position appears adequate to fund its capital
spending and acquisitions. Its main source of liquidity is a
USD610 million Reserve Based Loan facility (RBL), which matures
in June 2017, with $476 million outstanding as of September 30,
2014. The borrowing base (Maximum Available Amount) was
reaffirmed in October 2014 and will be reviewed again in April
2015. It also has an undrawn USD100 million Corporate Facility
Agreement (CFA) that matures in 2018. It also maintains a US$70
million Prepayment Agreement with a Royal Dutch Shell trading
entity, a borrowing facility under which Shell advances funds to
various Ithaca producing subsidiaries against delivery of future
production.

Drivers of Rating Change

Given its small scale proved reserve base and elevated leverage,
Moody's does not see upward ratings momentum in the near-term.
However, successful execution of its development program
demonstrating production growth and debt reduction, as well as
achievement of an improving cost structure, could lead to an
upgrade.

The B2 CFR could be pressured by delays or setbacks to the Stella
field development and projected production growth. Failure to
achieve a fairly rapid reduction in Adjusted Debt/Average Daily
Production in 2015-2016 from a post-acquisition high of about
US$76,000/BOE (estimated year-end 2014) could also result in a
downgrade. While we have no current indication of further
acquisitions as the company focuses on the Stella area
development, increased leverage to fund acquisitions in advance
of expected debt reduction could also pressure the rating.

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

Ithaca Energy Inc. is a Canadian-based independent exploration
and production company with almost all of its assets and
production in the United Kingdom Continental Shelf (UKCS) region
of the North Sea. The company has pursued growth via acquisitions
of producing field interests with a focus on appraising and
developing assets that have potential for with step outs in
contiguous areas. As of year-end 2013 Ithaca held 2P reserves of
58 million BOE with production averaging 11,600 BOE/day in third
quarter 2014.


PRIORY GROUP: S&P Raises Rating on Sr. Unsecured Notes to 'B+'
--------------------------------------------------------------
Standard & Poor's Ratings Services raised to 'B+' from 'B' its
issue rating on the senior unsecured notes issued by U.K. health
and social care provider Priory Group No. 3 PLC.  The notes have
a recovery rating of '3'.

The rating action follows Priory's redemption of about GBP245
million of its senior secured notes using the proceeds of the
sale-leasebacks on six of its hospitals to M&G Investments, plus
cash on its balance sheet.  The 'BB+' issue rating and '1+'
recovery rating on Priory's super senior revolving credit
facility and the 'BB' issue rating and '1' recovery rating on the
group's senior secured notes are unchanged.

As a result of the decrease in the amount of secured debt ranking
ahead of the group's unsecured debt, recovery prospects for
unsecured bondholders have improved.  Although indicative
numerical coverage in S&P's simulated default scenario (based on
a discrete asset valuation) exceeds 70%, S&P caps its recovery
rating at '3' due to the unsecured nature of the notes.

The corporate credit rating on Priory is unaffected by the
transaction.  Although it has reduced Priory's ownership over its
property portfolio, S&P understands that the group still retains
a majority ownership of around 80% on a freehold basis,
accounting for over 70% of group EBITDAR (EBITDA plus rent
costs).  The group's position as a leading provider of a broad
range of high acuity, nondiscretionary services across health and
social care, characterized by high fee rates and healthy margins,
continues to underpin S&P's assessment of Priory's business risk
profile. Furthermore, although the transaction will slightly
improve Priory's credit metrics, S&P's financial risk profile
assessment continues to reflect the group's highly leveraged
balance sheet, with pro forma Standard & Poor's-adjusted debt to
EBITDA of around 8.5x in 2014.

SIMULATED DEFAULT AND VALUATION ASSUMPTIONS

   -- Year of default: 2018
   -- Jurisdiction: U.K.

SIMPLIFIED WATERFALL

   -- Gross enterprise value at default: GBP660 million
   -- Administrative costs: GBP33 million
   -- Net value available to creditors: GBP627 million
   -- Priority claims: GBP5 million
   -- Super senior debt claims: GBP62 million*
   -- Recovery expectation: 100%
   -- Secured debt claims: GBP400 million
   -- Recovery expectation: 90%-100%
   -- Unsecured debt claims: GBP183 million*
   -- Recovery expectation: 50%-70% (capped)

* All debt amounts include six months of prepetition interest.



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


* BOOK REVIEW: Lost Prophets
----------------------------
Title: Lost Prophets -- An Insider's History of the
Modern Economists
Author: Alfred L. Malabre, Jr.
Publisher: Beard Books
Softcover: 256 pages
List Price: $34.95
Review by Henry Berry
Order your personal copy today at http://is.gd/KNTLyr

Alfred Malabre's personal perspective on the U.S. economy over
the past four decades is firmly grounded in his experience and
knowledge. Economics Editor of The Wall Street Journal from 1969
to 1993 and author of its weekly "Outlook" column, Malabre was in
a singular position to follow the U.S. economy in recent decades,
98have access to the major academic and political figures
responsible for economic affairs, and get behind the crucial
economic stories of the day. He brings to this critical overview
of the economy both a lively, often provocative, commentary on
the picture of the turns of the economy. To this he adds sharp
analysis and cogent explanation.

In general, Malabre does not put much stock in economists. "In
sum, the profession's record in the half century since Keynes and
White sat down at Bretton Woods [after World War II] provokes
dismay." Following this sour note, he refers to the belief of a
noted fellow economist that the Nobel Prize in this field should
be discontinued. In doing so, he also points out that the Nobel
for economics was not one originally endowed by Alfred Nobel, but
was one added at a later date funded by the central bank of
Sweden apparently in an effort to give the profession of
economists the prestige and notice of medicine, science,
literature and other Nobel categories.

Malabre's view of economists is widespread, although rarely
expressed in economic circles. It derives from the plain fact
that modern economists, even hugely influential ones such as John
Meynard Keynes, are wrong as many times as they are right. Their
economic theories have proved incomplete or shortsighted, if not
basically wrong-headed. For example, Malabre thinks of the
leading economist Milton Friedman and his "monetarist colleagues"
as "super salespeople, successfully merchandising.an economic
medicine that promised far more than it could deliver" from about
the 1960s through the Reagan years of the 1980s. But the author
not only cites how the economy has again and again disproved the
theories and exposed the irrelevance of wrong-headedness of the
policy recommendations of the most influential economists of the
day. Malabre also lays out abundant economic data and describes
contemporary marketplace and social activities to show how the
economy performs almost independently of the best analyses and
ideas of economists.

Malabre does not engage in his critiques of noted economists and
prevailing economic ideas of recent decades as an end in itself.
What emerges in all of his consistent, clear-eyed, unideological
analysis and commentary is his own broad, seasoned view of
economics-namely, the predominance of the business cycle. He
compares this with human nature, which is after all the substance
of economics often overlooked by professional and academic
economists with their focus on monetary policy, exchange rates,
inflation, and such. "The business cycle, like human nature, is
here to stay" is the lesson Malabre aims to impart to readers
interested in understanding the fundamental, abiding nature of
economics. In Lost Prophets, in language that is accessible and
jargon-free, this author, who has observed, written about, and
explained economics from all angles for several decades,
persuasively makes this point.

In addition to holding a top position at The Wall Street Journal,
Malabre is also the author of the books, Understanding the New
Economy and Beyond Our Means, which received the George S. Eccles
Prize from the Columbia Business School as the best economics
book of 1987.


                            *********

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.


                 * * * End of Transmission * * *