TCREUR_Public/150102.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, January 2, 2015, Vol. 16, No. 1

                            Headlines

G E R M A N Y

DEUTSCHE FORFAIT: Unveils Details of Restructuring Plan


K A Z A K H S T A N

HALYK SAVINGS: Deregisters Securities Due to Liquidation


N E T H E R L A N D S

ZOO ABS II: S&P Lowers Rating on Class E Notes to 'CCC-'


R U S S I A

B&N BANK: S&P Affirms 'B' ICR; Outlook Remains Developing
C.A.T. OIL: S&P Puts 'BB' CCR on CreditWatch Negative
CREDIT BANK OF MOSCOW: Fitch Affirms 'BB' LT Currency IDRs
HMS HYDRAULIC: S&P Maintains 'CCC' CCR on CreditWatch Negative
MAGADAN OBLAST: S&P Assigns 'BB-' Rating to RUB1 Billion Bond


S P A I N

AYT DEUDA: S&P Lowers Ratings on Two Note Classes to 'D(sf)'
MARTINSA-FADESA SA: Seeks Agreement Modification with Creditors


U K R A I N E

CREATIV GROUP: S&P Cuts LT Foreign Curr. Credit Rating to CCC-
HF ASSETS: Eastern Caribbean Court Commences Liquidation
METINVEST GROUP: Measures Debts at USD3 Billion, CEO Says
* UKRAINE: Passes Bill to Facilitate Bank Restructuring


U N I T E D   K I N G D O M

CITY LINK: Cuts 2,356 Jobs After Acquisition Talks Fail
ENTERTAINMENT EXCHANGE: In Administration, Closes Shop
HAPPY SHEEP: Owner Forced to Close Due to Spiraling Bills


U Z B E K I S T A N

RAVNAQ-BANK: S&P Affirms 'CCC' Counterparty Credit Ratings


X X X X X X X X

* BOOK REVIEW: The Rise and Fall of the Conglomerate Kings


                            *********


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


DEUTSCHE FORFAIT: Unveils Details of Restructuring Plan
-------------------------------------------------------
DF Deutsche Forfait AG has presented further details of its
restructuring plan and is asking investors in its 2013/20
corporate bond to cast their written votes on its proposal.  The
invitation to participate in this "vote without a meeting" is
being published on Dec. 30 in the Federal Gazette
(Bundesanzeiger).  These details essentially relate to the
reduction in the nominal interest rate (coupon) of the corporate
bond from 7.875% p.a. to 2% p.a. in return for a consideration to
be given to bondholders as proposed in the ad hoc announcement of
November 26.

The company is proposing to amend the terms and conditions of the
bond so that bondholders are granted options to acquire shares in
the company.  These option rights are to be inseparably tied to
the 2013/20 DF bond issues.  Those bondholders exercising their
options will be entitled to acquire between 100 (minimum) and 113
(maximum) of new shares at a price of EUR1.25 ("strike price")
per share for each bond with a nominal value of EUR1,000.  This
gives bondholders a chance to recoup part or all of the reduction
of the interest rate if the shares trade at a premium to their
strike price (XETRA closing price on December 23, 2014: EUR1.55).
The exact number of options per bond of a nominal value of
EUR1,000 will depend on whether collateral will have to be
provided to the lending banks.  If the ongoing negotiations with
the banks arrive at this result, the bondholders will get a
higher number of options in order to ensure economically equal
treatment of all creditors.

The appropriateness of the consideration based on the above
parameters has been confirmed by an opinion letter from
accountants Ebner Stolz; this letter can be downloaded from the
company's Web site at:

   http://www.dfag.de/investor-relations/hauptversammlung

According to the proposed plan, bondholders will be able to
exercise their options between May 27, 2016 at the earliest and
the maturity of the corporate bond on May 27, 2020 at the latest.
More details are provided in the invitation to "vote without a
meeting".

Apart from this amendment, the company also proposes to amend the
terms and conditions of the corporate bond to the effect that the
creditors forgo any right to demand an early repayment of the
bond until December 31, 2015, by which time the essential
restructuring measures are expected to be concluded.

A further item to be voted on is the company's proposal to
appoint lawyer Klaus Nieding of Frankfurt as joint representative
for all bondholders.

All bondholders wishing to participate in the vote have to submit
their written votes to the vote administrator, the notary public
Dr. Klaus Pieler of Cologne between Tuesday, January 20, 2015,
0.00 h and Thursday, January 22, 2015, 24.00 h.  Voting forms as
well as further information are available from investors'
depository banks as well as from the website of DF Deutsche
Forfait AG at www.dfag.de/investor-relations/anleihe
The proposed measures form part of a restructuring concept, which
is the basis of an "IDW S6 Sanierungsgutachten" restructuring
report.  According to this report, the proposed reduction of
funding costs and the strengthening of the company's equity base
are vital prerequisites for maintaining the company's going
concern status.  The measures are still under the proviso that
the Annual General Meeting approves the creation of the
contingent and authorized capital required for the implementation
of the restructuring measures.  The Annual General Meeting will
take place in Cologne on January 22, 2015.



===================
K A Z A K H S T A N
===================


HALYK SAVINGS: Deregisters Securities Due to Liquidation
--------------------------------------------------------
Halyk Savings Bank of Kazakhstan JSC (Almaty), whose securities
are officially listed on Kazakhstan Stock Exchange (KASE), has by
an official letter informed KASE of the following:

Based on the decision of the Board of Directors of Halyk Savings
Bank of Kazakhstan JSC dated September 30, 2014 to voluntarily
liquidate the Bank's subsidiary company HSBK (Europe) B.V. based
in the Netherlands on December 23, 2014 HSBK (Europe) B.V. was
removed from the register of the Netherlands Chamber of Commerce
in connection with its voluntary liquidation (period of the
liquidation process -- from October 9, 2014 to December 23,
2014).

Headquartered in the city of Almaty, Kazakhstan, Halyk Bank
reported -- as at June 30, 2014 -- total assets of KZT2.8
trillion (US$15.4 billion) and total equity of KZT438 billion
(US$2.4 billion), according to Moody's Investors Service.



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


ZOO ABS II: S&P Lowers Rating on Class E Notes to 'CCC-'
--------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions in ZOO ABS II B.V.

Specifically, S&P has:

   -- Raised its ratings on the class A-1, A-2, and B notes;
   -- Affirmed its ratings on the class X and C notes; and
   -- Lowered its ratings on the class D and E notes.

The rating actions follow S&P's credit and cash flow analysis of
the transaction using data from the transaction's trustee report
and the application of its relevant criteria.

The class X and class A-1 notes have partially amortized since
S&P's previous review.  However, further capitalization of
interest on the class E deferrable notes has increased their
outstanding balance.

According to S&P's analysis, the portfolio's overall credit
quality has deteriorated.  For example, S&P's analysis shows that
the proportion of 'CCC' rated assets (assets rated 'CCC+', 'CCC',
and 'CCC-') has increased since S&P's previous review-- to
EUR17.714 million (equivalent to 11.16% of the current performing
portfolio balance) from EUR9.601 million (equivalent to 4.37% of
the then performing portfolio balance).  This has resulted in an
increase in scenario default rates (SDRs; the level of defaults
that S&P expects the transaction to incur at the respective
rating levels).

"We conducted our cash flow analysis to determine the break-even
default rate (BDR) for each rated class of notes.  The BDR
represents our estimate of the maximum level of gross defaults,
based on our stress assumptions, that a tranche can withstand and
still fully repay the noteholders.  We used the portfolio balance
that we consider to be performing, the reported weighted-average
spread, and the weighted-average recovery rates that we
considered to be appropriate.  We incorporated various cash flow
stress scenarios using our shortened and additional default
patterns and levels for each rating category assumed for each
class of notes, combined with different interest stress scenarios
as outlined in our criteria," S&P said.

"Since our previous review, the class A-1 notes have amortized by
approximately EUR59 million.  According to our cash flow results,
the deleveraging of the class A-1 notes has resulted in an
increase in the available credit enhancement for all rated
classes of notes," S&P added.

S&P's analysis indicates that the available credit enhancement
for the class A-1, A-2, and B notes is now commensurate with
higher ratings than those previous assigned.  S&P has therefore
raised to 'BBB (sf)' from 'BBB- (sf)', to 'BB+ (sf)' from 'BB-
(sf)', and to 'B+ (sf)' from 'B (sf)' its ratings on the class A-
1, A-2, and B notes, respectively.

The available credit enhancement for the class C notes has also
increased since S&P's previous review.  However, S&P's credit and
cash flow results indicate that the BDRs are unable to surpass
the SDRs at a higher rating level than that currently assigned.
As a result, S&P has affirmed its 'B (sf)' rating on the class C
notes.

In S&P's view, while the class D and E notes also have increased
available credit enhancement, its analysis shows that current
BDRs are unable to sustain SDRs at the current rating levels.
S&P has therefore lowered to 'CCC (sf)' from 'CCC+ (sf)' and to
'CCC- (sf)' from 'CCC (sf)' its ratings on the class D and E
notes, respectively.

The class X notes have a very small outstanding balance with a
significant amount of credit enhancement, which S&P considers to
be commensurate with the assigned rating.  Therefore, S&P has
affirmed its 'AAA (sf)' rating on the class X notes.

RATINGS LIST

Class        Rating            Rating
             To                From

ZOO ABS II B.V.
EUR255.5 Million Senior Delayed Drawdown and
Deferrable-Interest Secured Floating-Rate Notes

Ratings Raised

A-1          BBB (sf)          BBB- (sf)
A-2          BB+ (sf)          BB- (sf)
B            B+ (sf)           B (sf)

Ratings Affirmed

X            AAA (sf)
C            B (sf)

Ratings Lowered

D            CCC (sf)          CCC+ (sf)
E            CCC- (sf)         CCC (sf)



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


B&N BANK: S&P Affirms 'B' ICR; Outlook Remains Developing
---------------------------------------------------------
Standard & Poor's Ratings Services said that it has affirmed its
long- and short-term 'B/B' issuer credit ratings on Russia-based
B&N Bank.  The outlook remains developing.  S&P also affirmed the
bank's Russia national scale rating at 'ruA-'.

The affirmation reflects S&P's opinion that, although B&N Bank's
operational and execution risks have increased following the
acquisition of Rost Bank Group (the Group), especially in the
context of a weaker economic environment, S&P still believes that
there is a potential upside due to possibly higher systemic
importance and an enlarged franchise within the Russian banking
system.  S&P also affirmed the bank's Russia national scale
rating at 'ruA-'.

On Dec. 10, 2014, the Russian state Deposit Insurance Agency
(DIA) announced that B&N Bank had been chosen as an investor in
charge of the financial rehabilitation of component banks of the
Rost Bank Group (OJSC ROST Bank, Commercial Bank KEDR, JSC
Tveruniversalbank, OJSC SKA-Bank, and JSC AKKOBANK).  As a part
of the publicly announced financial rehabilitation plan, B&N Bank
will receive a six-year loan from DIA amounting to Russian ruble
(RUB) 17.5 billion at a below-market-average interest rate, which
is likely to bolster B&N's capital in 2015 by an amount S&P
estimates at about RUB10 billion.  Although obtaining funding is
conditional to the deal, S&P believes that B&N has some room to
reverse the deal under certain conditions, although this is not
S&P's current expectation.  In addition, the DIA will loan
RUB18.4 billion directly to OJSC ROST Bank, covering immediate
capital and liquidity needs at the Group's level.

Despite this immediate capital gain, S&P still believes that B&N
Bank's capitalization is likely to be pressured by negative
trends in the operating environment and potential operating
losses arising from the deal, if integration risks materialize.
S&P understands that B&N has not yet finalized the due diligence
procedure on the acquired banks, potentially leaving some risks
still to be identified during this process.  B&N has agreed a
guarantee with the former owners of the group to cover any
higher-than-expected credit losses that arise from the Group's
loan book, but S&P believes that the execution of this guarantee
is uncertain at this stage.  In December, the equity shares of
the banks from this group were transferred to B&N's balance sheet
for one ruble. B&N does not have full operational control over
the Group yet, as DIA representatives are still performing
temporary management functions at these banks until the financial
rehabilitation plan is finally agreed by the end of 2014.  S&P
views the financial terms of this deal as favorable for B&N Bank.
Nevertheless, S&P have doubts that all recently acquired entities
will be supportive to the financial profile of the consolidated
group over time.

"We also note that the integration of the Group and the
establishment of a diligent risk management system throughout the
entire holding may become challenging given the size of the
acquisition.  The Group's assets amounted to roughly RUB116
billion on Nov. 1, 2014, which equals about 42% of B&N's assets
on the same date.  B&N is currently in the process of integrating
B&N Bank Credit Cards (formerly Moscomprivatbank) and DNB Bank,
which it acquired in the second quarter of 2014.  The performance
of the acquired businesses has been poor, with B&N Bank Credit
Cards losing RUB690 million and DNB Bank losing RUB24 million in
the third quarter of 2014, according to Russian accounting
standards. We consider that this is partly linked with the
current tough overall situation for banks in Russia, especially
in the retail sector where B&N Bank Credit Cards operates, and
partly with difficulties related to the transition period," S&P
said.

At the same time, S&P sees an opportunity for B&N Bank to become
a systemically important entity within the Russian banking
sector, as S&P's criteria define this.  Should this happen, the
bank could benefit from potential extraordinary government
support, which S&P could factor into its ratings.

The developing outlook means that positive and negative rating
actions are both possible within the next 12-18 months, as B&N's
systemic importance and enlarged franchise could potentially
offset higher execution risks in the context of the less-
supportive economic climate in Russia.

S&P may lower the ratings on B&N if integration risks related to
the various acquisitions materialize, or if S&P sees that the
asset quality or capital position of B&N Bank is coming under
greater pressure.

S&P may also lower the ratings if it considers that there has
been a material increase in banking industry and country risk for
Russia.

S&P could raise the ratings if it believes that B&N has become a
systemically important bank, and the Russian government could
provide extraordinary support to B&N in case of need.  However,
S&P anticipates that a positive rating action on B&N Bank would
require the bank to strengthen revenues and diversification, not
only increase its size.  An upgrade would also depend on a
substantial reduction of integration risks and B&N Bank's
projected risk-adjusted capital (RAC) ratio staying sustainably
in the range of 5%-6%.


C.A.T. OIL: S&P Puts 'BB' CCR on CreditWatch Negative
-----------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB' long-term
corporate credit rating and 'ruAA' Russia national scale rating
on Austria-registered oilfield services provider C.A.T. oil AG
(CAToil) on CreditWatch with negative implications.

The CreditWatch placement reflects S&P's view that the potential
acquisition of CAToil by Joma Industrial Source Corp. could lead
to a deterioration in CAToil's credit metrics, driven by a
potentially more aggressive capital structure and/or growth
strategy.  S&P understands that the potential acquirer's future
strategy for CAToil remains uncertain at this stage, but could
involve a more aggressive growth strategy--potentially in new
markets.  S&P also understands that the management board has
terminated its contracts with effect from March 31, 2015, except
for the company's Chief Operating Officer, Anna Brinkmann, whose
resignation is immediate.  This could have significant
implications for our view of the company's management and
governance.

S&P aims to resolve the CreditWatch placement once it has more
certainty regarding CAToil's future strategy and balance sheet.
A key rating driver would be S&P's assessment of the group's
financial risk and business risk profiles if the acquisition goes
ahead.  S&P will also assess the then new owner's operational
strategy for the company.


CREDIT BANK OF MOSCOW: Fitch Affirms 'BB' LT Currency IDRs
----------------------------------------------------------
Fitch Ratings has revised the Outlooks on 20 mid-sized and small
Russian banks to Negative from Stable. The action reflects
Fitch's expectation that the sharp deterioration in the Russian
operating environment will negatively impact the banks' credit
profiles in 2015.

The banks are Credit Bank of Moscow (CBOM, BB), Bank Saint
Petersburg OJSC (BSPB, BB-), Bank Zenit (Zenit, BB-), Chelindbank
(Chelind, BB-), Rosevrobank (REB ,BB-), Locko-bank (Locko, B+),
Primsotsbank (B+), Novosibirsk Social Commercial Bank
Levoberezhny, OJSC (Levoberezhny ,B+), Sovcombank (SCB, B+),
Tinkoff Credit Systems (Tinkoff, B+), JSC SDM-Bank (SDM, B+), JSC
Asian-Pacific Bank (APB, B+), Absolut Bank (Absolut, B+),
Evrofinance Mosnarbank (EMB, B+), JSC Bystrobank (Bystro, B),
SKB-Bank (SKB, B), Expobank LLC (Expobank, B), JSC Spurt Bank
(Spurt, B), Pervobank (PB, B), Uraltransbank (UTB, B-).

At the same time, the agency has affirmed the Long-term Issuer
Default Ratings of two Russian banks -- Novikombank and Russian
Universal Bank -- at 'B' with Stable Outlooks, and withdrawn
without affirmation the ratings of Promsvyazbank (PSB).

Most rated Russian banks not covered in this commentary are
already on Negative Outlook, either because their ratings are
linked to those of the Russian sovereign (BBB/Negative) or
because of bank-specific negative trends in their stand-alone
credit profiles.

KEY RATING DRIVERS AND SENSITIVITIES -- IDRS, VRs, National Long-
term Ratings

The revision of the banks' Outlooks to Negative reflects Fitch's
expectation that economic recession, significantly increased
funding costs, sharp rouble depreciation, closed wholesale
funding markets, a challenging liquidity situation and rising
inflation will weigh on the banks' credit profiles. At the same
time, the affirmation of the banks' ratings reflects (i) their
moderate resilience to the weaker operating environment, as
financial metrics are for the most part currently reasonable; and
(ii) sovereign support for the sector, in the form of regulatory
forbearance, liquidity provision and potential capital
injections, which should reduce near-term pressures.

Asset quality is a key driver for all banks on Negative Outlook.
Most of them had non-performing loan (NPL) ratios in single
digits at end-1H14 (APB, Tinkoff, Bystro, SKB and UTB had higher
ratios, reflecting their retail/small business focus),
notwithstanding moderate growth in NPL ratios by 1-6 pct in 1H14,
and these were well covered (at least by 80%) by reserves.
However, economic recession (we forecast GDP to contract by 2.8%
in 2015, and the downturn may be even more severe in the case of
tightened sanctions, accelerated capital flight or a further fall
in oil prices), higher interest rates and the weaker rouble are
likely to lead to a more marked deterioration in corporate asset
quality. Already large credit losses in retail-focused banks
(Tinkoff, SCB, SKB, Bystro and APB) are also likely to further
widen due to a reduction in real household incomes resulting from
high inflation and rouble devaluation.

Banks' generally moderate capitalization (although more solid at
Tinkoff, Chelind and EMB) will be hit by sizable mark-to-market
losses on bond portfolios, an upward revaluation of foreign
currency risk-weighted assets and, over the long-term, by
increased impairment charges, although regulatory forbearance
will to varying degrees prevent these effects from being
recognized in statutory accounts. The authorities have also
announced planned recapitalization measures, including up to
RUB1trn of non-cash subordinated loans and preference shares via
Depository Insurance Agency, although it is not yet clear whether
this will be available to all medium-sized and smaller banks and
on what terms.

Profitability has moderated in 2014 due to higher impairment
charges and funding costs, and both are likely to significantly
increase further, especially the latter after the recent Central
Bank of Russia interest rate hike to 17% from 10.5%. Banks are
likely to find it difficult to pass on higher funding costs to
borrowers without compromising asset quality, in Fitch's view.
Banks with a higher share of current accounts in their
liabilities (REB, SDM, Spurt, PB) may be more resilient to
funding cost increases, although it may be more difficult to
retain such free funding in a higher rate environment.

Liquidity risks have increased, as significant rouble devaluation
has triggered a wave of deposit withdrawals/currency conversions.
The reviewed banks on average experienced outflows (adjusted for
exchange rate effects) equal to 5-6% (the lowest being 1% and the
highest above 10% at some banks) of their customer funding in the
first half of December, although they had sufficient liquidity
buffers to cover these. Banks have already increased deposit
rates and cut new lending to retain customers and preserve
liquidity. The authorities also doubled the limit for insured
deposits to RUB1.4 million from RUB0.7 million to restore
customer confidence. The liquidity squeeze has eased somewhat in
the last few days as the rouble stabilised, but remains
potentially volatile. The CBR has relaxed collateral requirements
for its secured loans and committed to provide liquidity
facilities (including in FX) to support the sector, if needed.

Refinancing risks are generally limited, as most of the reviewed
banks are deposit-funded. Of those banks with substantial market
borrowings (CBOM, 24% of total liabilities; Locko, 30%; Zenit,
14%; and Tinkoff, 40%) only Locko and Tinkoff have material
repayments (around 25% of liabilities) in 2015 but which are
mitigated by reasonable liquidity buffers and, in the case of
Tinkoff, additionally by a rather short-term loan book. CBOM and
Zenit have longer-term maturities with amount falling due in 2015
not exceeding 11% of liabilities. However, if access to wholesale
funding is closed for a prolonged period of time and if banks
need to deleverage to make repayments, this could have negative
implications for profitability and asset quality.

The banks on Negative Outlook could be downgraded if (i) the
weaker operating environment translates into deterioration of
their financial metrics; (ii) prospects for Russia's economy and
macroeconomic stability continue to deteriorate significantly; or
(iii) banks become considerably more dependent on regulatory
forbearance or support from the Russian authorities.

The affirmations of Novikombank and Russian Universal Bank with
Stable Outlooks reflect their expected greater resilience to the
more challenging operating environment. For Novikombank this is
derived from the benefits of support from majority shareholder,
state corporation Rostec, and for Russian Universal Bank from its
large capital and liquidity buffers and niche franchise. The
ratings of Novikombank could come under downward pressure from
failure to receive timely support when required and in the case
of Russian Universal Bank from its niche franchise being subject
to regulatory pressure.

Fitch has also withdrawn the ratings of PSB without affirmation,
as the issuer has chosen to stop participating in the rating
process. Therefore, Fitch will no longer have sufficient
information to maintain the ratings. Accordingly, Fitch will no
longer provide ratings (or analytical coverage) for PSB. In
Fitch's view, the bank is likely to face similar pressures on its
stand-alone credit profile as other banks covered in this
commentary. However, as a larger and systemically important
institution, PSB may be more likely to benefit from government
support, in case of need.

KEY RATING DRIVERS AND SENSITIVITIES -- Senior and Subordinated
Debt Ratings

The banks' senior unsecured debt is rated in line with their
Long-term IDRs and National Ratings (for domestic debt issues).
The subordinated debt ratings of CBOM and BSPB are notched down
one level from their VRs (the banks' VRs are in line with their
Long-term IDRs), in line with Fitch's criteria for rating these
instruments.

Changes to the banks' Long-term IDRs, VRs and National Ratings
would likely impact the ratings of both senior unsecured and
subordinated debt.

KEY RATING DRIVERS AND SENSITIVITIES -- Support Ratings and
Support Rating Floor

All banks' '5' Support Ratings reflect Fitch's view that support
from their private shareholders cannot be relied upon. The
Support Ratings and Support Rating Floors of 'No Floor' also
reflect that support from the Russian authorities, although
possible, is not factored into the ratings due to the banks'
still small size and lack of overall systemic importance.

The Support ratings may be upgraded if the banks are acquired by
stronger institutional shareholders.

The rating actions are as follows:

Credit Bank of Moscow

Long-term foreign and local currency IDRs: affirmed at 'BB',
Outlooks revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'bb'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
National Long-term Rating: affirmed at 'AA-(rus)'; Outlook
revised to Negative from Stable
Senior unsecured debt (including that issued by CBOM Finance PLC
(Ireland)): affirmed at 'BB' and 'BB(EXP)'
Senior unsecured debt National Rating: affirmed at 'AA-(rus)' and
'AA-(rus)(EXP)'
Subordinated debt (issued by CBOM Finance PLC (Ireland)):
affirmed at 'BB-'

Bank Saint Petersburg OJSC

Long-term foreign and local currency IDRs: affirmed at 'BB-';
Outlooks revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'bb-'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
National Long-term Rating: affirmed at 'A+(rus)'; Outlook revised
to Negative from Stable
Senior unsecured debt: affirmed at 'BB-'
Senior unsecured debt National Rating: affirmed at 'A+(rus)'
Subordinated debt (issued by BSPB Finance plc): affirmed at 'B+'

Bank Zenit

Long-term foreign and local currency IDRs: affirmed at 'BB-',
Outlooks revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'bb-'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
National Long-term Rating: affirmed at 'A+(rus)', Outlook revised
to Negative from Stable
Senior unsecured debt: affirmed at 'BB-'
Senior unsecured debt National Rating: affirmed at 'A+(rus)'

Chelindbank

Long-term foreign currency IDR: affirmed at 'BB-', Outlooks
revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'bb-'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
National Long-term Rating: affirmed at 'A+(rus)', Outlook revised
to Negative from Stable

Rosevrobank

Long-term foreign and local currency IDRs: affirmed at 'BB-',
Outlooks revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'bb-'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
National Long-term Rating: affirmed at 'A+(rus)', Outlook revised
to Negative from Stable

Locko-Bank

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

Primsotsbank

Long-Term foreign currency IDR affirmed at 'B+'; Outlooks revised
to Negative from Stable
Short-Term foreign currency IDR affirmed at 'B'
Viability Rating affirmed at 'b+'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'No Floor'
National Long-Term Rating affirmed 'A-(rus)'; Outlook revised to
Negative from Stable

Novosibirsk Social Commercial Bank Levoberezhny, OJSC

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

Sovcombank

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

Tinkoff Credit Systems

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

JSC SDM-Bank

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

JSC Asian-Pacific Bank

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

Absolut Bank

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

Evrofinance Mosnarbank

Long-term foreign and local currency IDRs: affirmed at 'B+',
Outlooks revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'b+'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
National Long-Term Rating: affirmed at 'A-(rus)', Outlook revised
to Negative from Stable
Senior unsecured debt: affirmed at 'B+(EXP)'/ Recovery Rating
'RR4(EXP)'
Senior unsecured debt National Long-term Rating: affirmed at 'A-
(rus)(EXP)'

JSC Bystrobank

Long-term foreign and local currency IDRs: affirmed at 'B';
Outlooks revised to Negative from Stable
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'b'
National Long-Term Rating: affirmed at 'BBB(rus)'; Outlook
revised to Negative from Stable
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'

SKB-Bank

Long-term foreign currency IDR: affirmed at 'B', Outlook revised
to Negative from Stable
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'b'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'

Expobank LLC

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

JSC Spurt Bank

Long-term foreign currency IDR affirmed at 'B'; Outlook revised
to Negative from Stable
Short-term foreign currency IDR affirmed at 'B'
Viability Rating affirmed at 'b'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'No Floor'
National Long-term Rating affirmed at 'BBB-(rus)'; Outlook
revised to Negative from Stable

Pervobank

Long-Term foreign currency IDR affirmed at 'B'; Outlooks revised
to Negative from Stable
Short-Term foreign currency IDR affirmed at 'B'
Viability Rating affirmed at 'b'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'No Floor'
National Long-Term Rating affirmed at 'BBB(rus)'; Outlook revised
to Negative from Stable
Senior unsecured debt affirmed at 'B'/Recovery Rating 'RR4'
Senior unsecured debt National Long-term Rating: affirmed at
'BBB(rus)'

Uraltransbank

Long-term foreign currency IDR: affirmed at 'B-', Outlook revised
to Negative from Stable
Short-Term foreign currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'b-'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
National Long-term Rating: affirmed at 'BB-(rus)', Outlook
revised to Negative from Stable

Novikom

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

Russian Universal Bank

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

Promsvyazbank

Long-term foreign and local currency IDRs: 'B+'/Stable; withdrawn
Short-term foreign and local currency IDRs: 'B'; withdrawn
Viability Rating: 'b+'; withdrawn
Support Rating: '4'; withdrawn
Support Rating Floor: 'B'; withdrawn
National Long-term Rating: 'A(rus)'/Stable; withdrawn
Senior unsecured debt rating (issued by PSB Finance SA):
'B+'/Recovery Rating 'RR4'; withdrawn
Subordinated debt rating (issued by PSB Finance SA): 'B'/Recovery
Rating 'RR5'; withdrawn


HMS HYDRAULIC: S&P Maintains 'CCC' CCR on CreditWatch Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services maintained its long-term 'CCC'
corporate credit rating on Russia-based pump and oil and gas
equipment manufacturer HMS Hydraulic Machines and Systems Group
PLC (HMS) on CreditWatch with negative implications.

At the same time, S&P has maintained its 'CCC-' issue rating on
the Russian ruble (RUB) 5.1 billion currently outstanding notes
issued by HMS' subsidiary CJSC Hydromashservice on CreditWatch
negative.  The recovery rating on the notes is unchanged at '5',
indicating S&P's expectation of modest (10%-30%) recovery in the
event of a payment default.

S&P subsequently withdrew all of its ratings on the group, at the
issuer's request.

At the time of the withdrawal, S&P believed that HMS could face
default within the next two months, unless the company is able to
attract sufficient funds to redeem its RUB2.1 billion of senior
unsecured bonds maturing in February 2015.

S&P understands that HMS is actively taking measures to secure
refinancing for its upcoming bond maturity.  However, the company
faces challenging financial market conditions in Russia, which
S&P believes is leading to more-restricted access to bank and
debt capital markets.

Without additional bank support or other sources of liquidity
such as inflows from working capital, S&P sees the risk that HMS
will be unable to repay its coming bond maturity and will have
little headroom to cover ongoing cash needs.  The company remains
highly reliant on the ability and willingness of banks to
increase, renew, or extend bank lines.  At the same time,
potential delays in scheduled payments from HMS' customers could
further limit liquidity.

S&P understands that as of Dec. 1, 2014 the company had RUB1.1
billion of retained cash and access to undrawn committed credit
lines of RUB0.8 billion.

Refinancing risks are coupled with HMS' currently weak operating
environment.  Due to challenging market conditions in Russia's
oil and gas sector, S&P anticipates that HMS' operating
performance will remain under pressure over the rest of 2014 and
in 2015.

HMS' liquidity position remains "weak".  In S&P's view, it sees
the risk that there may be insufficient liquidity to meet the
RUB2.1 billion bond maturity in February 2015.

HMS has a net debt to EBITDA maintenance covenant of 4.5x with
some of its key banks.

The CreditWatch placement reflects S&P's view that HMS is
vulnerable to default if it is unable to secure adequate funds
for the refinancing of its senior unsecured bond.

At the time of withdrawal, S&P was unable to resolve its
CreditWatch placement as it didn't know whether the company would
obtain sufficient liquidity to replay its bonds.  S&P could have
lowered the rating further if the company underwent a debt
restructuring, which S&P would view as tantamount to a default
under its criteria.

S&P could have affirmed the ratings if HMS resolved its near-term
refinancing needs and liquidity shortage.  This could have
stemmed from new bank financing or working capital inflows.


MAGADAN OBLAST: S&P Assigns 'BB-' Rating to RUB1 Billion Bond
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'BB-' long-term global scale rating and 'ruAA-' Russia national
scale rating to the Russian ruble (RUB) 1 billion (about US$18
million) four-year amortizing senior unsecured bond to be issued
by Russia's Magadan Oblast (BB-/Stable/--; ruAA-/--/--) by year-
end 2014.  The ratings on the bond mirror those on the oblast.

The bond will have fixed-rate coupons and an amortizing repayment
schedule.  According to the planned redemption schedule, 30% of
the bond is to be repaid in 2016, 30% in 2017, and the remaining
40% in 2018.

The ratings on Magadan are constrained by S&P's view of Russia's
volatile and unbalanced institutional framework, which
contributes to Magadan's very weak budgetary flexibility.  Owing
to these system constraints, S&P views Magadan's financial
management as weak in an international context, mirroring S&P's
view for most Russian local and regional governments.  Despite
its wealth above the Russian average, Magadan's economy is weak,
in S&P's view, because of its heavy concentration on mining
precious metals.  The oblast's weak budgetary performance also
constrains the ratings. The ratings are supported by S&P's view
of the oblast's adequate liquidity, low debt, and low contingent
liabilities.

The stable outlook reflects S&P's view that in 2014-2017,
Magadan's budgetary performance will remain weak, but its debt
burden will increase only gradually and stay low.  Moreover, S&P
thinks the oblast's liquidity will remain adequate, owing to the
reliance on medium-term committed bank facilities.



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


AYT DEUDA: S&P Lowers Ratings on Two Note Classes to 'D(sf)'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its credit ratings on
AyT Deuda Subordinada I Fondo de Titulizacion de Activos's class
A, B, and C notes.

AyT Deuda Subordinada I is a cash flow collateralized debt
obligation (CDO) collateralized by subordinated debt that nine
Spanish banks initially issued specifically for the purpose of
this transaction.

The downgrades follow S&P's review of the transaction's
underlying portfolio and its current performance as of the most
recent transaction information that S&P received as of August
2014.

The portfolio concentration has increased since S&P's previous
review.  S&P has also observed that the transaction is
undercollateralized, with EUR123 million of subordinated debt to
service more than EUR200 million of rated debt.

As there is no available credit enhancement for the most senior
class of notes, due to undercollateralization, S&P has lowered to
'CCC (sf)' from 'BB+ (sf)' its rating on the class A notes.  In
S&P's view, the risk of nonpayment of principal on the class A
notes has increased since its previous review.

S&P's ratings on the class B and C notes address timely interest
payments on each payment date and ultimate payment of principal
by the maturity date.  From the August 2014 investor report, S&P
notes that these classes of notes have deferred the interest due.
S&P has therefore lowered to 'D (sf)' from 'B (sf)' and 'B- (sf)'
its ratings on the class B and C notes, respectively.

RATINGS LIST

Class       Rating            Rating
            To                From

AyT Deuda Subordinada I, Fondo de Titulizacion de Activos
EUR298 Million Asset-Backed Floating-Rate Notes

Ratings Lowered

A           CCC (sf)          BB+ (sf)
B           D (sf)            B (sf)
C           D (sf)            B- (sf)


MARTINSA-FADESA SA: Seeks Agreement Modification with Creditors
---------------------------------------------------------------
Reuters reports that Martinsa-Fadesa SA has presented an
application for Modification of Agreement to its creditors before
the Commercial Court no. 1 in A Coruna.

According to Reuters, the Modification of Agreement must be
accepted by creditors involving 75% of ordinary claims and
approved by the court.

Headquartered in La Corun, Spain, Martinsa Fadesa SA --
http://www.martinsafadesa.com/-- develops residential and
commercial property projects, including hotels, shopping centers
and golf courses, as well as industrial projects, among others.
The company also operates in Portugal, Romania, Hungary, Ireland,
France, Bulgaria, Mexico, the Dominican Republic, the Czech
Republic, Slovakia, and Poland.

In January 2008, Martinsa sought voluntary creditor protection
after it failed to obtain a EUR150 million loan to refinance
debt, which had been syndicated to about 45 lenders.  The company
faces EUR3.6 billion in debt.  It spent almost three years in
creditor protection, known as concurso in Spanish bankruptcy law,
before reaching an agreement with creditors in March 2011.  It
reported a loss of EUR568 million in 2013, giving it negative
equity of EUR4.2 billion, compared with EUR3.6 billion in 2012.



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


CREATIV GROUP: S&P Cuts LT Foreign Curr. Credit Rating to CCC-
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term foreign
currency credit ratings on the following Ukrainian agribusiness
companies to 'CCC-' from 'CCC':

   -- Creativ Group OJSC;
   -- MHP S.A.;
   -- Ukrainian Agrarian Investments S.A. (UAI); and
   -- UkrLandFarming PLC.

The outlooks on the ratings are negative.

The downgrades of the aforementioned Ukrainian agribusiness
companies follow S&P's downgrade of Ukraine on Dec. 19, 2014.

At present, S&P do not expect to rate these companies above the
sovereign, as it considers their liquidity positions are unlikely
to become sufficiently solid to withstand the restrictions on
foreign currency cross-border transfer and conversion, if the
sovereign were to default.  S&P's long-term 'CCC-' rating on
Ukraine therefore caps its ratings on the affected Ukrainian
agribusiness companies.  The default could become inevitable in
the next few months if circumstances do not change, for instance,
if additional international financial support is not forthcoming.

S&P considers that the companies' accessible liquidity sources
under such a stress scenario would be insufficient to meet their
liquidity needs, including their short-term debt and working
capital financing requirements.  At the same time, S&P notes that
their stand-alone credit quality -- before taking into account
potential negative sovereign intervention -- is higher than that
of the sovereign.  S&P's stand-alone credit profiles (SACPs) for
the respective companies reflect this.

S&P also equalizes its local currency ratings with the foreign
currency ratings on the Ukrainian agribusiness companies.  This
is because S&P considers that they would not pass its stress
tests on the local currency ratings under its hypothetical
scenario of a Ukraine default.

Creativ Group OJSC

The 'CCC-' local and foreign currency corporate ratings on
Creativ reflect S&P's long-term 'CCC-' foreign currency sovereign
rating on Ukraine and its SACP of 'b'.  S&P bases the SACP on the
company's "vulnerable" business risk profile, which primarily
reflects S&P's view of the very high country risk of operating in
Ukraine.  It also reflects its "significant" financial risk
profile due to its improving leverage, and S&P's understanding
that the company will maintain an adjusted debt-to-EBITDA ratio
of less than 4x.  S&P considers the company's stand-alone credit
quality to be lower than that of its 'B+' rated peers.  S&P
adjusts the SACP downward by one notch, using its comparative
rating analysis.  S&P views Creativ Group's liquidity as being
"less than adequate".

MHP S.A.

S&P's 'CCC-' local and foreign currency corporate ratings on MHP
reflect S&P's long-term 'CCC-' foreign currency sovereign rating
on Ukraine and the company's SACP of 'b'.  S&P bases the SACP on
the company's "vulnerable" business risk profile, which primarily
reflects S&P's view of the very high risk of doing business in
Ukraine.  It also reflects S&P's assessment of its financial risk
profile as being "intermediate."  This is because S&P considers
that leverage will be less than 3x the adjusted debt-to-EBITDA.
S&P also considers that MHP's aggressive expansionist financial
policy weighs on its SACP.  S&P views MHP's liquidity as being
"less than adequate".

Ukrainian Agrarian Investments S.A.

S&P's 'CCC-' local and foreign currency corporate ratings on UAI
reflect S&P's long-term 'CCC-' foreign currency sovereign rating
on Ukraine and its SACP of 'b-'.  S&P bases the SACP on the
company's "vulnerable" business risk profile, which primarily
reflects S&P's view of the very high risk of doing business in
Ukraine, as well as the group's substantial EBITDA decline in
2013.  It also reflects the group's "aggressive" financial risk
profile due to S&P's view that leverage levels will reach 4x to
5x of debt-to-EBITDA.  S&P considered the group to be highly
leveraged in 2013, after EBITDA declined sharply.  Nevertheless,
S&P expects its operating performance to rebound in 2014, even
though the price of corn is expected to remain somewhat subdued.
Given the company's short-term debt maturity profile, S&P applies
a negative modifier for capital structure, thereby adjusting its
SACP downward by one notch.  S&P views UAI's liquidity as being
"weak".

UkrLandFarming PLC

S&P's 'CCC-' local and foreign currency corporate ratings on
UkrLandFarming reflect S&P's 'CCC-' foreign currency rating on
Ukraine and its SACP of 'b-'.  S&P bases the company's SACP on
its "vulnerable" business risk profile, which primarily reflects
S&P's view of the very high risk of doing business in Ukraine.
It also reflects its "significant" financial risk profile, based
on S&P's view that leverage will be about 3x and that EBITDA
interest coverage will be in the range of 3x to 6x.  The SACP
also reflects S&P's two-notch downward adjustment to
UkrLandFarming's anchor, based on S&P's assessments of the
company's "negative" financial policy and "weak" liquidity.

OUTLOOK

The negative outlooks on the affected Ukrainian agribusiness
companies mirror S&P's negative outlook on Ukraine.  S&P could
lower its ratings on these companies if they face tighter
currency controls, more restrictions on the transfer of funds, or
rising political, or fiscal pressures.  S&P could also lower the
ratings if the companies' liquidity were to deteriorate further.
However, a downgrade of Ukraine or a downward revision of S&P's
transfer and convertibility (T&C) assessment would not
automatically result in a downgrade, if the individual companies
were to demonstrate resilience to country-specific risks (such as
stricter currency restrictions), and were able to continue to pay
their respective debts upon a sovereign default.

S&P would raise its ratings on these companies if conditions in
Ukraine were to stabilize, and if S&P saw lower risk related to
currency controls and repatriation requirements.  Any rating
upside would be closely linked to positive rating actions on the
sovereign.  However, S&P could also consider upgrading the
individual companies if they were able to continue to pay their
debt, despite the liquidity constraints stemming from the
sovereign.

RATINGS LIST

Downgraded; CreditWatch/Outlook Action
                                     To            From
Creativ Group OJSC
Corporate Credit Rating
  Foreign Currency                   CCC-/Neg/--   CCC/Stable/--
  Local Currency                     CCC-/Neg/--   B-/Stable/--

MHP S.A.
Corporate Credit Rating
  Foreign Currency                   CCC-/Neg/--   CCC/Stable/--
  Local Currency                     CCC-/Neg/--   B-/Stable/--
Senior Unsecured                    CCC-               CCC

Ukrainian Agrarian Investments S.A.
Corporate Credit Rating
  Foreign Currency                   CCC-/Neg/--   CCC/Stable/--
  Local Currency                     CCC-/Neg/--   CCC/Stable/--

UkrLandFarming PLC
Corporate Credit Rating
  Foreign Currency                   CCC-/Neg/--   CCC/Stable/--
  Local Currency                     CCC-/Neg/--   CCC/Stable/--
Senior Unsecured                    CCC-          CCC


HF ASSETS: Eastern Caribbean Court Commences Liquidation
--------------------------------------------------------
Interfax-Ukraine reports that the Eastern Caribbean Supreme Court
on Dec. 15 began the liquidation of HF Assets Management Limited.

Russell Crumpler has been appointed as liquidator, Interfax-
Ukraine says, citing a company report in the Holos Ukrainy
newspaper.

A creditors' meeting is scheduled for January 5, 2015, Interfax-
Ukraine discloses.

Erste Group Bank AG appealed to the High Court of Justice of the
British Virgin Islands to declare HF Assets Management Limited
bankrupt, Interfax-Ukraine recounts.

Negotiations between Mriya's management and its creditors were
held on Dec. 16, Interfax-Ukraine relays.  The agricultural
holding said that during the meeting with bond holders and
creditors' representatives, no constructive position was agreed
on their part regarding debt restructuring, Interfax-Ukraine
relates.

Mriya's leaders, in turn, demanded the appointment of a manager
for the company's debt restructuring process of their choosing,
Interfax-Ukraine discloses.  Shareholders rejected the agreed
version of the restructuring process, significantly increasing
the likelihood of the company going bankrupt, Interfax-Ukraine
notes.

HF Assets Management Limited is the majority shareholder of Mriya
agricultural company.


METINVEST GROUP: Measures Debts at USD3 Billion, CEO Says
---------------------------------------------------------
According to Ukrainian News Agency, Metinvest Group Chief
Executive Officer Yuriy Ryzhenkov said in an interview with
Kapital newspaper that the company measures its debts to
creditors at USD3 billion.

Mr. Ryzhenkov said the Group's bank debt for 2015 stands at
USD800 million, Ukrainian News Agency relates.

Mr. Ryzhenkov said that Metinvest is in talks on prolongation of
the debt or provision of any instrument for its restructuring.

Besides, the Group still has USD100 million outstanding debt on
the previously issued Eurobonds due in 2015, and USD100 million
of borrowings for purchase of United Coal coalmines in the United
States, Ukrainian News Agency discloses.

Moreover, the Group has USD750 million of indebtedness on
Eurobonds due in 2018 and USD300 million deferred Eurobonds due
in 2015 and 2016, Ukrainian News Agency states.

Metinvest issued USD289.7 million Eurobond in the course of
restructuring of the previous USD500 million issue, Ukrainian
News Agency notes.

Metinvest B.V. is a Ukraine-based holding company of mining and
steel assets.

                         *     *     *

As reported by the Troubled Company Reporter-Europe on December
10, 2014, Fitch Ratings has assigned Metinvest B.V.'s USD289.7
million 10.5% guaranteed amortizing bonds due 2017 a final 'CCC'
senior unsecured rating with a Recovery Rating 'RR4'.  The semi-
annual interest and principal repayments are first due in
May 2016.  The new bonds were issued pursuant to an exchange
offer in respect of Metinvest's existing USD500 million 2015
notes.  Some USD386.4 million existing notes were exchanged and
USD113.6 million remain outstanding. Cash consideration of USD250
per USD1,000 in the nominal amount of the existing notes was paid
for the exchange.  The bond rating is in line with Metinvest's
Long-term Issuer Default Rating (IDR) of 'CCC', which remains
constrained by the Ukrainian sovereign rating.


* UKRAINE: Passes Bill to Facilitate Bank Restructuring
-------------------------------------------------------
Interfax-Ukraine reports that Ukraine's Verkhovna Rada, in the
early hours of Dec. 29, passed a bill on measures to facilitate
the capitalization and restructuring of banks in Ukraine.

Bill No. 1564 was supported by 273 MPs, Interfax-Ukraine
discloses.

"We propose that the bill allowing quick injections of money in
banks and the Individuals' Deposit Guarantee Fund be immediately
passed.  Under current laws, these procedures could last for
months," Interfax-Ukraine quotes Ukrainian Prime Minister Arseniy
Yatseniuk as saying regarding the bill, while presenting it to
parliament.

He explained that the devaluation of the hryvnia had undermined
public confidence in the banking system, which is connected with
Russian military aggression, and this has led to the situation
where millions of Ukrainians had withdrawn money from banks as
they believed they might collapse, Interfax-Ukraine relates.

The government has already capitalized Oschadbank with the use of
government domestic loan bonds worth UAH11 billion, and is
expected to capitalize another state-run bank -- Ukreximbank --
with UAH5 billion, Interfax-Ukraine relays.

"We foresee UAH36 billion next year for the capitalization of the
banks that meet the specified (in the bill) criteria and have
been agreed with our international financial partners,"
Mr. Yatseniuk, as cited by Interfax-Ukraine, said.  According to
Interfax-Ukraine, Mr. Yatseniuk said these are "backbone banks"
and banks that will become financially sustainable in the future.

The premier also added that UAH20 billion more would be allocated
from the state budget in 2015 to the Individuals' Deposit
Guarantee Fund, Interfax-Ukraine notes.

The bill also includes a provision to inform the public about the
banks that receive NBU refinancing loans, about their amounts and
types, Interfax-Ukraine states.



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


CITY LINK: Cuts 2,356 Jobs After Acquisition Talks Fail
-------------------------------------------------------
BBC News reports that the administrators of City Link have
announced 2,356 job losses after a bid to buy the company failed.

The administrators, who took over City Link on Christmas Eve,
said an unnamed consortium's offer was not acceptable, BBC
relates.

According to BBC, the administrators said the possible buyer
"offered no money up front and significantly undervalued the
assets to be acquired".

Business Secretary Vince Cable said the government has put
measures in place to help the affected staff find new jobs, BBC
relays.

The company was founded in 1969 and employed 2,727 people, but
suffered years of losses, BBC notes.

City Link was bought by Better Capital for GBP1 in April 2013 but
the administrators from Ernst & Young say the GBP40 million the
investment company put into the firm was not enough to turn it
around, BBC recounts.

Just over 370 City Link staff have been kept on to deal with the
parcels that remain at depots and help run down the business, BBC
states.

The administrators, as cited by BBC, said they had proposed
alternative purchase terms to the consortium "that would be
acceptable and common in these situations.  The consortium,
despite attempts to make them reconsider, declined to amend their
original offer".

City Link is a Coventry-based delivery firm.


ENTERTAINMENT EXCHANGE: In Administration, Closes Shop
------------------------------------------------------
The Gazette reports that the owner of Entertainment Exchange, a
Tiverton store, has blamed poor footfall for the closure of his
shop in December.

Four members of staff have been made redundant following the
closure of the Entertainment Exchange, and managing director
Matthew Conridge told The Gazette that a 20 per cent drop in
footfall since the shop opened 18 months ago forced his decision.

The report notes that Mr. Conridge said: "Over the Christmas
period we reviewed our companies as a whole and took the decision
that Tiverton, Exmouth and Paignton would close, unfortunately."

The former Tiverton Town Football Club Chairman said that he was
particularly sad to close the Tiverton store on December 30, and
the uncertainty of Market Walk?s future was another factor he had
had to consider, the report relates.

The report notes that Mr. Conridge said: "I have a fond
connection with the town but footfall on the street is down by
about 20 per cent on last year and that's not just Entertainment
Exchange that's the town as a whole.  It's also the uncertainty
of the possible sale of the building to Mid Devon. It's too risky
to invest.?

Mr. Conridge opened the Entertainment Exchange on the corner of
Bampton Street and Market Walk in August 2013.

In October 2013, Mr. Conridge was outraged by a scheme which
offered free rates to temporary pop-up shops in the town -- an
offer he said should have been used to benefit the High Street as
a whole, the report recalls.

Labeling the scheme as shameful on social media site Twitter, the
businessman wrote: "Whoever it was who decided to give commercial
businesses in Tiverton free money with the rates relief should
have actually asked the local businesses what they think the
money should be spent on.  And rates are still a concern for
business owners in the town," the report adds.


HAPPY SHEEP: Owner Forced to Close Due to Spiraling Bills
----------------------------------------------------------
The Gazette reports that Laura Sheepy, owner of the Happy Sheep
cafe in Bampton Street, said that she may be forced to close
because of spiralling bills which had left her out of pocket as
well as the lack of people coming to the town.

"The town has been very quiet over the last few months and
business is down on where it should be.  It is getting to the
stage where it would be more cost-effective to close for half of
the week," the report quoted Ms. Laura as saying.



===================
U Z B E K I S T A N
===================


RAVNAQ-BANK: S&P Affirms 'CCC' Counterparty Credit Ratings
----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'CCC/C' long- and
short-term counterparty credit ratings on Uzbekistan-based
Ravnaq-bank.  At the same time, S&P revised the outlook on
Ravnaq-bank to stable from positive.

Ravnaq-bank did not obtain the foreign currency license or
permission to open a new branch in Tashkent, the capital city of
Uzbekistan, in 2014.  The outlook revision largely reflects S&P's
opinion that Ravnaq-bank may face additional difficulties in
achieving these targets, and S&P considers these plans to be
crucial for further development of the bank's business position.

S&P's 'CCC' long-term ratings on Ravnaq-bank continue to reflect
the bank's vulnerability to operating conditions in Uzbekistan.
In the absence of regulatory approval, Ravnaq-bank managed to
expand its franchise only marginally in 2014, with assets
shrinking on the back of a large, albeit planned, withdrawal by
one of the depositors and subdued earnings.  S&P notes that
Ravnaq-bank plans to attract a third-party investor, but S&P
believes them to be contingent to the regulatory approval for a
foreign currency license.

S&P's current base-case scenario does not include any foreign
currency license or new branches opening before the second half
of 2015, contrary to the bank's more aspiring expectations.  If
the bank's inability to resolve the regulatory issues prolong
beyond 2015, in S&P's opinion, shareholders may feel less
inclined to support the bank.  This is likely to complicate
compliance with the growth requirements set by the Uzbekistani
authorities, increasing already high regulatory risks for the
entity.

The stable outlook on Ravnaq-bank incorporates S&P's view that
gaining a foreign currency license is uncertain, although not
impossible, and without this license, any improvement of the
business financial profile will be challenging.

S&P might consider raising the rating if the bank obtained a
foreign currency license, boosting its ties with clientele.  If
so, S&P expects the bank will diversify its funding profile and
expand its business volumes and earnings.  S&P also assumes that
business expansion would not further erode the bank's adequate
capitalization.

S&P might consider a negative rating action if it sees that the
shareholders' propensity to support the bank declined, resulting
in a deterioration of the bank's business profile.  An additional
source of pressure on the bank's creditworthiness could come from
a decline in liquidity or solvency, with the bank's risk-adjusted
capital ratio falling below 7%.



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


* BOOK REVIEW: The Rise and Fall of the Conglomerate Kings
----------------------------------------------------------
Author: Robert Sobel
Publisher: Beard Books
Softcover: 240 pages
List Price: $34.95
Review by David Henderson
Order your personal copy today at http://is.gd/1GZnJk

The marvelous thing about capitalism is that you, too, can be a
Master of the Universe. If you are of a certain age, you will
recall that is the name commandeered by Wall Street bond traders
in their Glory Days. Being one is a lot like surfing: you have to
catch the crest of the wave just right or you get slammed into
the drink, and even the ride never lasts forever. There are no
Endless Summers in the market.

This book is the behind-the-scenes story of the financial wizards
and bare-knuckled businessmen who created the conglomerates, the
glamorous multi-form companies that marked the high noon of
postWorld War II American capitalism. Covering the period from
the end of the war to 1983, the author explains why and how the
conglomerate movement originated, how it mushroomed, and what
caused its startling and rapid decline. Business historian Robert
Sobel chronicles the rise and fall of the first Masters of the
Universe in the U.S. and describes how the era gave rise to a
cadre of imaginative, bold, and often ruthless entrepreneurs who
took advantage of a buoyant stock market to create giant
enterprises, often through the exchange of overvalued paper for
real assets. He covers the likes of Royal Little (Textron), Text
Thornton (Litton Industries), James Ling (Ling-Temco-Vought),
Charles Bludhorn (Gulf & Western) and Harold Geneen (ITT). This
is a good read to put the recent boom and bust in a better
perspective.

While these men had vastly different personalities and processes,
they had a few things in common: ambition, the ability to seize
opportunities that others were too risk-averse to take, willing
bankers, and the expansive markets of the 1960s. There is
something about an expansive market that attracts and creates
Masters of the Universe. The Greek called it hubris.

The author tells a good joke to illustrate the successes and
failures of the period. It seems the young son of a
Conglomerateur brings home a stray mongrel dog. His father asks,
"How much do you think it's worth?" To which the boy replies, "At
least $30,000." The father gently tries to explain the market for
mongrel dogs, but the boy is undeterred and the next afternoon
proudly announces that he has sold the dog for $50,000. The
father is proudly flabbergasted, "You mean you found some fool
with that much money who paid you for that dog?" "Not exactly,"
the son replies, "I traded it for two $25,000 cats."

While it lasted, the conglomerate struggles were a great slugfest
to watch: the heads of giant corporations battling each other for
control of other corporations, and all of it free from the rubric
of "synergy." Nobody could pretend there was any synergy between
U.S. Steel and Marathon Oil. This was raw capitalist power at
work, not a bunch of fluffy dot.commies pretending to defy market
gravity.

History repeats itself, endlessly, because so few people study
history. The stagflation of the 1970s devalued the stock of
conglomerates and made it useless a currency to keep the schemes
afloat. The wave crashed and waiting on the horizon for the next
big wave: the LBO Masters of the 1980s.
Robert Sobel was born in 1931 and died in 1999. He was a prolific
chronicler of American business life, writing or editing more
than 50 books and hundreds of articles and corporate profiles. He
was a professor of business history at Hofstra University for 43
years and he a Ph.D. from NYU.


                            *********

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.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

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 2015.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
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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 * * *