TCREUR_Public/150116.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 16, 2015, Vol. 15, No. 011

                            Headlines

C Y P R U S

* CYPRUS: Troika Technical Mission to Return on January 27


F R A N C E

AIM: Normandy Abattoirs Put Under Receivership


G R E E C E

EPIHIRO PLC: Moody's Raises Rating on Class A Notes to 'Ba3'
YIOULA GLASSWORKS: S&P Revises Outlook on 'CCC' CCR to Developing


K A Z A K H S T A N

ALLIANCE BANK: Plan Recognition Order to Remain in Place


M A L T A

MORE SUPERMARKETS: Owes More Than EUR1.6 Mil. to 17 Companies


N E T H E R L A N D S

UPC HOLDING: S&P Affirms 'BB-' CCR; Outlook Stable
ZIGGO GROUP: Moody's Assigns 'Ba3' CFR; Outlook Stable
ZIGGO GROUP: S&P Lowers CCR to 'BB-'; Outlook Stable


R U S S I A

DME LTD: Fitch Affirms 'BB+' LT Issuer Default Rating


S P A I N

SACYR: Nears Debt Restructuring Deal with Banks


U K R A I N E

MRIYA AGRO: Creditors Plan to Replace Management


U N I T E D   K I N G D O M

AIR NEWCO: Moody's Assigns B3 CFR & Rates GBP128MM Loan (P)Caa2
CYRENIANS CYMRU: Charity Declared Insolvent
HMV: Hatfield Store Set to Close
LYNX FISHING: Former Suppliers Buy Firm Out of Administration
MYFERRYLINK: Eurotunnel to Seek Buyer After Appeal Fails

PARAGON OFFSHORE: Moody's Lowers CFR to Ba3; Outlook Negative
PLYMOUTH: Future Unclear as Administration Deadline Arrives
RANGERS FOOTBALL: Loses Appeal of GBP250K League Fine
SILVERSTONE HOSPITALITY: In Administration, Cuts Jobs
TAURUS CMBS 2006-2: Fitch Cuts Ratings on 3 Note Classes to 'Dsf'

TESCO: S&P Lowers CCR to 'BB+' on Weaker Earnings; Outlook Stable


X X X X X X X X

* BOOK REVIEW: Competitive Strategy for Health Care Organizations


                            *********


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C Y P R U S
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* CYPRUS: Troika Technical Mission to Return on January 27
----------------------------------------------------------
Cyprus Mail reports that a Troika technical mission is set to
return to Cyprus on January 27 for the sixth review of the
financial assistance programme, an IMF source told the Cyprus
News Agency on January 9. The mission will focus on the
insolvency framework, a "critical priority" for the programme at
this stage, the source noted.

"The technical mission is scheduled to begin its work in Cyprus
on January 27", but "a full review mission", which includes the
heads of the Troika, "will begin once the suspension of the
foreclosures law is expired. This is the plan at the moment," the
source told CNA, the report says.

Cyprus Mail relates that the House suspended in its final plenary
session of 2014 the implementation of the foreclosures law until
the January 30, asking the Government to submit all the five
bills of an insolvency framework, which was scheduled to be put
into force on January 1 to set up a safety net to protect
vulnerable groups from foreclosure of mortgaged property.

The insolvency framework will be the focus of the technical
mission due on January 27, the IMF source noted, adding: "this is
a critical priority of the program given the high level of non-
performing loans," the report relays.

So far, three bills form the package have been tabled before the
House, while the fourth is expected to be approved by the Cabinet
in its next meeting, Cyprus Mail states.

The fifth bill of the insolvency package is still in the hands of
the Troika for scrutiny. "Important and relevant work is in
progress on that," the source said replying to a question.
The report relates that the IMF official said that the
EUR86 million tranche, halted following the Parliament`s decision
to suspend the foreclosures law, will be disbursed when Cyprus
fulfills its obligations related to it.

"As a result of the suspension of the foreclosures law, some
essential requirements for the completion of the review are
missing. At this stage first, we will have to see the commitments
being met and then we will reassess first at the staff level,"
the source told CNA.



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


AIM: Normandy Abattoirs Put Under Receivership
----------------------------------------------
The Beef Site reports that the Normandy abattoirs of AIM were
placed in receivership this week with the hopes of finding a
buyer.

According to The Beef Site, the French meat industry organization
SNIV SNCP said the greatest challenges relate to the pig meat
sector, which in the slaughter sector has been weak for a number
of years because of unfavorable market conditions and for several
years has had problems with the labor force.

Paul Rouche, Managing Director at SNIV-SNCP, said that for
several years, the main competition for French pig meat has come
from German and Spanish companies that use a cheap workforce,
with wages being double in France compared to Germany, The Beef
Site relates.  Mr. Rouche added that another aggravating factor
was the ban imposed by Russia in January last year following the
discovery of African swine fever in wild boar in Lithuania, The
Beef Site relays.

As Russia took a quarter of European exports, the French industry
could not find either the volume or the prices in the market to
make up the loss, The Beef Site discloses.

In just a year, the losses amounted to between EUR150 and EUR200
million, The Beef Site says.

Mr. Rouche added that the price war between the supermarkets was
also having devastating effects, The Beef Site notes.

AIM is the third food company in the Basse-Normandie region with
production plants at Sainte-Cecile, Antrain, and Nogent-le-
Rotrou, processing pork, beef, veal and lamb.  The company also
trades in cured and smoked products as well as poultry.  Founded
in 1956, the company employs a total of 679 people and is part of
the Association Normande des Enterprise Alimentaires (ANEA).



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


EPIHIRO PLC: Moody's Raises Rating on Class A Notes to 'Ba3'
------------------------------------------------------------
Moody's Investors Service has upgraded one note in Epihiro PLC, a
Greek structured finance transaction. This follows Moody's
completion of the assessment of the portfolio composition and
borrower concentration. Moody's placed on watch for upgrade Class
A in August 2014, as a result of the change of the country
ceiling of Greece to Ba3 from B3 and Greece's sovereign rating
upgrade to Caa1 from Caa3.

Epihiro PLC is a transaction backed by loans granted to large and
medium companies in Greece, with a highly concentrated portfolio.

Affected Rating:

Issuer: EPIHIRO PLC

  EUR1623 million Class A Notes, Upgraded to Ba3 (sf); previously
  on Aug 18, 2014 B3 (sf) Placed Under Review for Possible
  Upgrade

Ratings Rationale

Reduced Sovereign Risk

The rating action reflects Moody's upgrade of its assessment of
the highest rating that can be assigned to debt obligations
issued by domestic Greek issuers, or where cash flows used to
repay debt obligations are sourced from domestic Greek assets, to
Ba3. This new maximum achievable rating applies to all forms of
ratings in Greece, including structured finance ratings.

Sufficient CE

Class A benefits from a high and stable Credit Enhancement above
50% which covers largely the top 5 loans representing 13% of the
portfolio.

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:

A further lowering in Moody's assessment of the sovereign risk in
Greece could lead to an additional upgrade of the ratings.
Conversely, an increase in Moody's assessment of the sovereign
risk in Greece, as well as a deterioration in the collateral
performance, could lead to a downgrade of the ratings.

Sensitivity Analysis

Moody's did not conduct a cash flow analysis as the main driver
of the rating actions was its upgrade of the country ceiling for
Greek debt.


YIOULA GLASSWORKS: S&P Revises Outlook on 'CCC' CCR to Developing
-----------------------------------------------------------------
Standard & Poor's Ratings Services revised the implications of
its CreditWatch placement of its 'CCC' long-term corporate credit
ratings on Greece-based glass container manufacturer Yioula
Glassworks S.A. and its core subsidiary Glasstank B.V. to
developing from positive.  S&P is maintaining the ratings on
CreditWatch, where it initially placed them with positive
implications on May 5, 2014, and May 14, 2014, respectively.

At the same time, S&P affirmed its 'CCC' ratings on the EUR185
million senior secured notes due 2019, issued by Glasstank.

S&P is maintaining the CreditWatch because Yioula continues in
talks with Eurobank Ergasias S.A. and Piraeus Bank S.A. to extend
its bank lines totaling approximately EUR40 million, currently
due in June 2015.  In S&P's view, Yioula's successful extension
of its debt obligations with Eurobank Ergasias and Piraeus Bank
to 2018 would translate into a more manageable debt maturity
profile, because its yearly commitments would be unlikely to
exceed EUR12 million over the next 24 months, excluding the
impact of short-term lines renewed annually.

The developing implications reflect the rising downside risks
Yioula faces because its talks with the two banks are progressing
at a much slower pace than S&P initially anticipated, resulting
in debt commitments now due within less than six months.  When
the refinancing talks began, S&P expected negotiations to close
during September 2014.  Based on management's subsequent
indications, S&P then anticipated that the three parties would
finalize discussions by Dec. 31, 2014.  S&P understands that the
technical due diligence of the fixed assets is currently the
stumbling block and at this stage, S&P lacks visibility on when
the due diligence will be completed.  Taking into account
Yioula's generation of about EUR30 million annually in funds from
operations (FFO), S&P considers that the group could face rapidly
rising refinancing risk linked to the EUR40 million in bank
commitments in the next few months.

S&P continues to assess Yioula's financial risk profile as
"highly leveraged" because of its Standard & Poor's-adjusted
total debt-to-EBITDA ratio well above 5x. The group's low cash
balance and still-limited free operating cash flow (FOCF)
generation, resulting from heavy capital outlays for the
refurbishment of its furnaces, continue to constrain the ratings.

That said, the group delivered reasonable operating performance
during the first nine months of 2014.  Although volumes sold
decelerated owing to the reconstruction of furnaces at Drujba
(Bulgaria) and Stirom (Romania), and the halt of operations at
Bucha (Ukraine), EBITDA generation remained generally
satisfactory, converging toward EUR60 million during the 12
months ended Sept. 30, 2014 (excluding the EUR19 million
impairment charge on Ukrainian operations).  This translated into
a still-healthy EBITDA margin exceeding 20%, thanks to a relief
in input costs, particularly for natural gas, combined with
continuous price increases and the first signs of operating
efficiencies of the new Sofia (Bulgaria) furnace.  Still, S&P
thinks that looming uncertainties in the Ukrainian market and
weak economic prospects in Greece may constrain the group's full-
year 2014 consolidated results.

S&P's view of Yioula's business risk profile as "weak" primarily
stems from its narrow focus on the Balkan area and its presence
in countries featuring moderate to high country risk, under S&P's
criteria.  S&P acknowledges management's efforts to lessen the
group's exposure to its core markets through penetration of the
larger Western Europe glass tableware market, which accounts for
approximately 11% of group sales.  Still, in this market, the
group faces fierce competition from much larger and integrated
glass container manufacturers.  An additional constraint on
Yioula's business risk profile is its exposure to volatile energy
costs and its concentration on glass packaging, which S&P views
as mature and vulnerable to substitution risks from plastics and
metal. Yioula also has high capital expenditure needs,
particularly to refurbish furnaces.

These weaknesses are partially tempered by the group's leading
positions in its core markets, with market share in excess of
70%; an above average EBITDA margin; a diversified customer base;
and longstanding relationships with multinational companies from
the food and beverage industry.  S&P understands that the group
is currently refurbishing its furnaces with an eye to increasing
its production capacity, while reducing energy consumption by
applying best-in-class technology.

S&P assess management and governance as "weak," under its
criteria, owing to Yioula's ongoing liquidity issues.

Glasstank accounted for roughly 70% of Yioula's revenues, EBITDA,
and total assets as of Dec. 31, 2013.  S&P assess Glasstank as a
core subsidiary of the group under our group rating methodology.
In S&P's view, Glasstank's creditworthiness is fairly comparable
with that of the consolidated group, which leads S&P to align the
ratings with those on Yioula.  S&P don't think that Glasstank can
be viewed as an "insulated subsidiary," as defined in S&P's
criteria, because the parent company has geared up this
subsidiary to refinance its existing debt.

In S&P's base case for Yioula, S&P assumes:

   -- Revenue dropping by 6%-9% in 2014-2015, hampered by
      deteriorating conditions in Ukraine and ongoing weak
      economic prospects in Greece;

   -- An EBITDA margin likely to remain at about 21%-24%; and

   -- Continuous capital spending on enhancements of production
      facilities.

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

   -- Standard & Poor's-adjusted debt to EBITDA well above 5x at
      year-end 2015;

   -- FFO to debt limited to 7%-9% over the same period; and

   -- Persistently negative FOCF because of the refurbishment of
      the Bulgarian and Romanian production facilities.

S&P assess Yioula's liquidity as "weak" under S&P's criteria,
because it anticipates the group's liquidity sources will not
cover its liquidity uses over the next 12 months.  S&P considers
that covenant breaches remain an ongoing liquidity risk.  That
said, Yioula's lenders have waived breaches to date.

S&P calculates Yioula's principal liquidity sources from
Sept. 30, 2014:

   -- A EUR18 million unused portion of short-term committed
      credit lines (available as of Sept. 30, 2014);

   -- A cash balance of approximately EUR11 million on Sept. 30,
      2014; and

   -- FFO of less than EUR30 million.

As of the same date, S&P estimates that Yioula's principal
liquidity uses are:

   -- Current maturities on long-term debt of more than EUR47
      million, including the EUR13 million Piraeus Bank
      commitment and the EUR28 million Eurobank Ergasias line;

   -- More than EUR70 million in short-term lines due by June
      2015, although S&P expects these to continue to be renewed;

   -- Capital expenditures of more than EUR30 million; and

   -- Working capital outflows in excess of EUR10 million, owing
      to peak intrayear working capital swings.

S&P aims to resolve the CreditWatch placement within the next 60
days, during which S&P expects that it will observe tangible
progress in Yioula's ongoing discussions with Eurobank Ergasias
and Piraeus Bank.

A developing CreditWatch means that a rating may be raised,
lowered, or affirmed.

S&P would likely raise the corporate credit ratings on Yioula and
Glasstank by one notch if Yioula's negotiations with Eurobank
Ergasias and Piraeus Bank enable it to address its near-term debt
obligations.

Conversely, if Yioula's management fails to renegotiate the debt
obligations, S&P will likely review both the corporate credit and
issue ratings on Yioula and Glasstank.



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


ALLIANCE BANK: Plan Recognition Order to Remain in Place
--------------------------------------------------------
An order was made, on December 16, 2014, under the Cross Border
Insolvency Regulations 2006 in relation to JSC Alliance Bank of
50, Furmanov Street, Almaty 050004, Kazakhstan.  The order
provides that:

  "[P]ursuant to Article 20(6) and/or Article 21(1)(a) and (b) of
  the UNCITRAL Model Law on cross-border insolvency as set out in
  Schedule 1 of the Cross-Border Insolvency Regulations 2006
  (S.I. 2006 No 1030), if the Specialised Inter-district Economic
  Court of Almaty City, Republic of Kazakhstan terminates the
  restructuring proceedings commenced in Kazakhstan in respect of
  the Debtor pursuant to the amended law "on banks and banking
  activity in the Republic of Kazakhstan" (the "Restructuring
  Proceedings") by reason of the actions envisaged by the
  Debtor's restructuring plan which was approved at a creditors'
  meeting on November 19, 2014 (the "Restructuring Plan") having
  been accomplished, then:

    1. Notwithstanding the said termination, the stay imposed by
       the order of Registrar Derrett dated April 29, 2014,
       recognizing the Restructuring Proceedings (the
       "Recognition Order") (subject to the exceptions set out
       therein) shall continue until further order so that no
       action or proceeding (including, for the avoidance of
       doubt, the commencement of a proceeding under British
       insolvency law) shall be proceeded with or commenced
       against the Debtor or its property in England, in relation
       to all or any of the Debtor's obligations and liabilities
       to Claimants (as defined in the Debtor's Information
       Memorandum dated October 13, 2014, as supplemented by the
       Supplemental Information Memorandum dated November 10,
       2014) which are the subject of the Debtor's Restructuring
       Plan, except by leave of this Court and subject to such
       terms as this Court may impose;

    2. The suspension referred to in Article 20(1)(c) of the
       Model Law (as modified by the Recognition Order) shall
       terminate; and (for the avoidance of doubt) that pending
       the termination of the Restructuring Proceedings by reason
       of the actions envisaged by the Debtor's Restructuring
       Plan having been accomplished, the Recognition Order shall
       remain in place accordance with its terms."

The Firm's foreign representative is:

          Timur Rizabekovich Issatayev
          c/o White & Case LLP
          5 Old Broad Street
          London EC2N 1DW

                    About JSC Alliance Bank

JSC Alliance Bank is the sixth-largest bank in Kazakhstan by net
loans.  JSC Alliance is a bank with substantially all of its
operations in the Republic of Kazakhstan.  As of June 30, 2009,
the Bank's net assets constituted 4.9% of the total assets of the
banking system in Kazakhstan.  It has 3,900 employees.  The
Bank's only assets in the U.S. are certain correspondent accounts
with U.S. Banks.

JSC Alliance Bank filed for Chapter 15 bankruptcy (Bankr.
S.D.N.Y. Case No. 10-10761) to protect itself from U.S. lawsuits
and creditor claims while it reorganizes in Kazakhstan.  The
Chapter 15 petition says that assets and debts are in excess of
US$1 billion.  Law firm White & Case LLP, based in New York, is
representing JSC Alliance in the Chapter 15 case.



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M A L T A
=========


MORE SUPERMARKETS: Owes More Than EUR1.6 Mil. to 17 Companies
-------------------------------------------------------------
Vanessa Macdonald at Times of Malta reports that over
EUR1.6 million is so far being claimed by 17 companies owed money
by More Supermarkets.

According to Times of Malta, the 17 companies -- including ARMS
-- are claiming the money in a variety of ways, ranging from
judicial letters to court cases.

Alf. Mizzi is claiming over EUR600,000 -- the largest amount
being claimed -- while Farsons Group companies are claiming over
EUR300,000,  Times of Malta discloses.  The amounts are owed by
five different entities behind the More Supermarkets chain, which
closed last autumn, Times of Malta notes.  The Malta Association
of Credit Management believes that the actual amount is much
higher as there would be many other creditors who have simply
given up, and opted not to pursue their legal options, Times of
Malta says.  There may also be others who have not yet instituted
legal action, Times of Malta states.

The court last week approved a garnishee order for EUR3.5 million
in favor of Alexander Farrugia and Edmond Mugliette, who had lent
money to the supermarket owner Ryan Schembri, who fled Malta last
September, Times of Malta relays.



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


UPC HOLDING: S&P Affirms 'BB-' CCR; Outlook Stable
--------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' long-term
corporate credit rating on European cable operator UPC Holding
B.V. (UPC).  The outlook is stable.

The affirmation takes into account UPC's carve-out of UPC
Nederland and UPC Ireland from the UPC credit pool.  The Dutch
business will be merged under Ziggo Group Holding B.V., and the
Irish business will be merged under Virgin Media Inc.  The
affirmation also accounts for UPC's significant remaining scale,
scope, and diversity -- including its Swiss business, which has
robust profitability.  At the same time, UPC's credit metrics
will stay at a similar level to S&P's previous expectations, on
the back of the company's recapitalization plans alongside the
carve-out.  The transaction will involve repayment of about
EUR3.2 billion in secured and unsecured debt issued by UPC,
funded by a roll-over of the existing term loan, as well as new
debt raised at both Ziggo, via orphan special purpose vehicles,
and Virgin Media. Additionally, UPC retains a long-dated debt
maturity profile, thanks to proactive liquidity management.
However, S&P's rating continues to reflect high leverage policies
inherited from its parent Liberty Global plc (Liberty), and large
upstreaming of cash for pooling at the parent level, which leaves
UPC with limited financial flexibility.

S&P's assessment of UPC's business risk profile primarily
reflects the company's geographic diversification through a cable
asset portfolio in seven European countries after the
transaction, with some utility-like business characteristics,
solid market positions, and extensive and largely upgraded
direct-access cable networks.  Many of UPC's operations have an
entrenched position as the second-largest player behind the
national telecommunications incumbent for bundled triple-play
services in their areas.  Based on S&P's expectation of
continuing take-up of triple-play services and the progressive
migration of the company's analog subscriber base toward digital
TV, S&P expects resilient revenues on a like-for-like basis.  S&P
anticipates the company's adjusted EBITDA margin, pro forma for
the extractions and before share-based compensation expense and
special items, to fall toward 45.0% in 2014 and 2015, down from
49.4% in 2013, reflecting the loss of UPC's high margin
Netherlands business.  S&P expects that higher bandwidth
capabilities of upgraded (EuroDOCSIS 3.0) cable networks --
compared with digital subscriber line technologies, including
asymmetric (ADSL) and very high bit-rate (VDSL) -- will continue
to support solid triple- and quad-play subscriber growth in many
of the company's service areas.

These strengths are partially offset by stiff competition for
broadband, telephony, and TV services from large incumbent
telecom operators.  In many of UPC's service areas, national
telecom incumbents are much larger and financially stronger.
They also have a wider and greater penetration among consumers
and businesses.  Competition for broadband subscribers is
particularly fierce where telecom incumbents, such as Swisscom
AG, have started to make sizable investments in fiber networks to
defend their market positions.  In addition, UPC faces ongoing
meaningful competition from satellite operators and Internet
Protocol TV (IPTV) offerings from telecom incumbents, which S&P
assumes will gradually erode the company's video subscriber base.
Competition from satellite providers is especially aggressive in
Eastern European countries, notably Romania and Hungary, which
has led to pronounced customer churn and the repricing of some of
the company's TV offers.  A potential longer-term challenge to
UPC's video subscriber base could come from "over-the-top" (OTT)
video displacement, whereby consumers get their video content
from the Internet.  That said, OTT requires a high-speed
broadband connection, and UPC is currently well positioned to
provide this connection with its upgraded cable networks.

S&P's assessment of UPC's financial risk profile primarily
reflects S&P's expectation that its adjusted debt-to-EBITDA ratio
is likely to stay between 4.5x and 5.0x, as in S&P's previous
base case.  In addition, S&P believes that the company may remain
acquisitive, as this has been one of its main growth strategies.
This is partly balanced by the company's long-dated capital
structure, supported by proactive liquidity management, active
management of currency and interest rate risk, and prospects for
resilient free operating cash flow (FOCF) generation.

In S&P's base case, it expects the capital expenditures-to-sales
ratio to remain below 20%, as high network investments and costs
associated with the uptake of triple-play moderate.  S&P also
thinks that cash not needed by the company will be upstreamed to
the parent level.

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

   -- Approximately EUR2.3 billion minimum of pro forma revenues
      in fiscal 2014 and 2015.  This reflects flat to low-single-
      digit revenue growth, primarily arising from Western
      European growth led by Switzerland, offset by weak growth
      in Austria and Central and Eastern Europe.

   -- Despite intense competition across UPC's markets, S&P
      expects stable EBITDA margins slightly above 45%, supported
      by S&P's view that the company will implement modest price
      increases during the next two years.

   -- Capital expenditures of less than 20% of revenues.

   -- Reduced debt, reflecting first quarter 2015 amortization
      that should neutralize the loss of EBITDA contribution from
      UPC Nederland and UPC Ireland.

Based on these assumptions, S&P arrives at these credit measures
for UPC, pro forma for the extractions and recapitalization:

   -- Adjusted debt to EBITDA (leverage) will remain flat at
      about 4.6x over the next three years.

   -- Adjusted funds from operations (FFO) to debt will remain at
      about 16%.

   -- S&P expects higher adjusted FOCF to debt in 2015, at
      between 6% and 7%, on improved cash flow from operations
      and lower capital spending.

The stable outlook on UPC mirrors S&P's stable outlook on its
parent company, international cable television and broadband
services provider Liberty, because S&P considers UPC to be a
"core" subsidiary of Liberty, as per S&P's group rating
methodology.  Additionally, S&P's outlook reflects its
expectation of UPC's continued strong operational performance,
and, despite the carve-out of significant assets from its
portfolio, that credit metrics will remain stable.  These
strengths support the company's stand-alone credit profile
(SACP), which S&P assess at 'bb-'.

S&P might consider revising down the SACP if Liberty adopted a
more aggressive financial policy for UPC than S&P currently
expects.  For example, S&P could revise down its assessment of
the SACP if UPC's operating performance deteriorated, if FOCF
generation was challenged by excessive market competition, or if
an increase in acquisition activity or leveraged shareholder
returns pushes UPC's adjusted-debt leverage sustainably above 5x.

S&P currently does not expect to revise up our assessment of the
SACP on UPC, owing to the company's aggressive debt policy.  S&P
could, however, consider revising up its assessment of the SACP
if the company's financial policy became less aggressive and
UPC's credit metrics improved thanks to significant debt
reduction.  For example, S&P would consider debt sustainably at
4x or below as positive for the SACP.


ZIGGO GROUP: Moody's Assigns 'Ba3' CFR; Outlook Stable
------------------------------------------------------
Moody's Investors Service assigned a Ba3 Corporate Family Rating
(CFR) and a Ba3-PD Probability of Default rating to Ziggo Group
Holding B.V. and withdraws all ratings of Ziggo Holding B.V.
(formerly Ziggo N.V.). Ziggo Group Holding B.V. ("Ziggo Group
Holding" or "the company") will be the reporting entity for
future consolidated financial reports for the Ziggo group of
companies. Moody's also downgraded the rating of the senior
secured notes due 2020 at Ziggo B.V. ('Ziggo BV') to Ba3 (from
Ba2), assigned a definitive Ba3 rating to Ziggo BV's existing
bank facilities and assigned a Ba3 rating to Ziggo Secured
Finance B.V.'s proposed new EUR1.5 billion senior secured
facilities. Finally, the agency upgraded the rating of the senior
notes due 2024 ("the 2024 notes") assumed by Ziggo Bond Company
B.V. ("Ziggo Bond Company" previously assigned to LGE HoldCo VI
B.V.) to B2 (from (P)B3) and assigned a B2 rating to the proposed
issuance of EUR730 million in senior unsecured notes due 2025 at
Ziggo Bond Finance B.V. ("Ziggo Bond Finance").

Ziggo Group Holding is an indirectly wholly owned subsidiary of
Liberty Global plc ("Liberty Global", Ba3, stable). In turn,
Ziggo Group Holding indirectly wholly owns Ziggo Holding B.V.
(formerly Ziggo N.V.), the Dutch cable operator Liberty Global
acquired in November 2014. Liberty Global has started a
reorganization process, which will result in a transfer of its
existing Dutch cable operations headed by UPC Nederland to Ziggo
Group Holding. All ratings assigned assume that the
reorganization process will be concluded as currently planned
during the first calendar quarter of 2015. The ratings also
assume that cross guarantee and collateral sharing arrangements
are put in place that will result in a pari passu position of the
claims under the new senior notes at Ziggo Bond Finance and Ziggo
Bond Company and the existing senior secured debt at Ziggo B.V.
and the new senior secured debt at Ziggo Secured Finance,
respectively. Moody's notes that the claims of debt holders of
Ziggo Bond Finance and Ziggo Secured Finance on the new Ziggo
Group Holding's subsidiaries are indirect through senior notes
proceeds loans and secured proceeds loans respectively. Ziggo
Bond Finance and Ziggo Secured Finance are SPV borrowing
vehicles, directly and indirectly owned by a Dutch foundation.
Proceeds from the Ziggo Bond Finance issuance will initially be
held in escrow, to be released in connection with the completion
of the reorganization of Liberty Global's Dutch assets.

Ratings Rationale

The rating actions follow the finalization of Liberty Global's
financing for the acquisition of Ziggo Holding B.V. (formerly
Ziggo N.V.), including the pushdown of the 2024 notes to Ziggo
Bond Company and the announcement that Liberty Global intends to
combine its existing Dutch cable operations with those acquired
in the Ziggo acquisition. The Ba3 CFR reflects the combined
group's increased scale and scope and its strong market position
as the only significant cable communications operator in the
Netherlands, as well as the potential for significant synergies
in areas such as operating costs, procurement and cross-selling.
The company should also see growth from its mobile activities as
mobile virtual network operator (MVNO), albeit at a margin cost,
and from an increased focus on business-to-business services.
However, Moody's expects competition in the mature Dutch market
for communications services to remain strong, in particular from
telecom incumbent Koninklijke KPN N.V. (Baa3, stable). While the
agency expects competition to be focused on product and service
quality, disruptive price competition remains a possibility.

Ziggo Group Holding's ratings are constrained by its significant
leverage of around 5.2x Debt/EBITDA (as calculated by Moody's) on
a last-twelve-months to 30 September 2014 pro forma combined
basis and by Moody's expectation that Liberty Global will utilize
Ziggo Group Holding's cash generation and leverage capacity from
time to time for parent company distributions within the confines
of Liberty Global's long-standing 4x-5x Debt/OCF leverage target.

Ziggo Group Holding's capitalization following the conclusion of
Liberty Global's corporate reorganization process will include
related-party funding of just under EUR5 billion. Moody's
understands and the ratings assume that Liberty Global will
structure this funding so that it meets Moody's criteria for
equity-equivalent treatment.

Moody's regards Ziggo Group Holding's liquidity provision as
solid relative to its near-term requirements. Pro forma for
Liberty Global's corporate reorganization the company is expected
to hold cash of EUR 43 million. This is complemented by its EUR
650 million revolving credit facility, which is currently not
utilized. Ziggo Group Holding's near term obligations are not
material relative to the size of the group and the bulk of third
party debt does not mature before 2022. The RCF is subject to
certain financial maintenance covenants, including the
requirement to maintain a senior net debt leverage ratio of no
more than 4.50 to 1 and a total net debt leverage ratio of more
than 5.50 to 1. Moody's expects the company to maintain good
headroom under these covenants.

Outlook

The stable outlook is based on Moody's assumption that the
integration of Ziggo and UPC NL will progress smoothly yielding
integration benefits such as cost, capex and revenue synergies
and that the new entity will produce sustainable revenue and
EBITDA growth.

What Could Change The Rating -- Down

Downward ratings pressure could ensue, if Moody's expectations
for a stable outlook are not met or if leverage as measured by
the Debt/EBITDA ratio (Moody's definition) exceeds 5.25x for a
sustained period of time. Negative rating pressure would also
ensue should Ziggo Group Holdings related party funding not meet
Moody's criteria for equity treatment.

What Could Change The Rating -- Up

While positive ratings development is unlikely in the near term,
strong operating performance and solid revenue growth along with
leverage as measured by the Debt/EBITDA (as adjusted by Moody's)
ratio falling sustainably below 4.25x could lead to a ratings
upgrade.

The principal methodology used in these ratings was Global Pay
Television - Cable and Direct-to-Home Satellite Operators
published in April 2013. Other methodologies used include Loss
Given Default for Speculative-Grade Non-Financial Companies in
the U.S., Canada and EMEA published in June 2009.

Ziggo Group Holding B.V., headquartered in Utrecht, The
Netherlands is through its subsidiaries the largest cable
operator in the Netherlands. Following its combination with
Liberty Global's Dutch cable assets its networks will cover 93%
of the country by homes passed as of September 30, 2014 and serve
4.3 million customers (against 7.0 million homes passed). The
company is the country's leading pay-TV operator, provides
telephony and fast broadband services. It also operates a nascent
mobile business as a mobile virtual network operator (MVNO) with
over 100,000 subscribers at the end of September 2014. Its main
competitors are the Dutch telecom incumbent KPN, Tele2 and other
DSL players as well as Canal Digitaal, a satellite TV operator.
For the last twelve months ending September 30, 2014 the combined
group generated EUR2.5 billion in revenue.


ZIGGO GROUP: S&P Lowers CCR to 'BB-'; Outlook Stable
----------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term corporate credit rating on Netherlands-based Ziggo
Group Holding B.V. (Ziggo) to 'BB-' from 'BB'.  The outlook is
stable. The rating was removed from CreditWatch with negative
implications, where it was placed on Jan. 28, 2014.

At the same time, S&P lowered the long-term corporate credit
rating on Ziggo subsidiary, Amsterdamse Beheer en
Consultingmaatschappij B.V., to 'BB-' from 'BB'.  S&P
subsequently withdrew the rating at the company's request.

S&P has revised the recovery ratings on Ziggo's pre-acquisition
senior secured term loans to '3' and all senior secured issue
ratings are now 'BB-'.

The '6' recovery ratings on Ziggo's exchanged senior notes remain
unchanged and the issue rating is now 'B'.

The resolution of the CreditWatch and downgrade follow Liberty's
acquisition of over 98% of Ziggo and Liberty's subsequent
announcement that it would extract and merge its Dutch UPC
operations (UPC Nederland) with those of Ziggo.  In a parallel
transaction, UPC's Irish operations (UPC Ireland) will also be
extracted and merged with Virgin Media Inc.  These transactions
will involve repayment of UPC debt, funded in part by about
EUR2.2 billion of new debt raised at Ziggo via orphan special
purpose vehicles (SPVs).  S&P has assigned issue ratings to the
new debt and updated its recovery assumptions as outlined in the
recovery section.

The downgrade mainly reflects the application of parent Liberty's
aggressive financial policy at Ziggo, resulting in higher
adjusted leverage.  S&P also expects that Liberty will pursue an
aggressive dividend distribution policy and upstream most excess
cash from Ziggo.

S&P's assessment of Ziggo's business risk profile as
"satisfactory" since the Liberty acquisition mainly reflects
Ziggo's improved competitive position, partially offset by the
high level of competition in the Dutch market, particularly from
incumbent company Koninklijke KPN N.V.

S&P's "aggressive" assessment of Ziggo's financial risk profile
since the Liberty acquisition has weakened in line with S&P's
expectation of adjusted debt to EBITDA rising to 4.5x-5.0x, free
cash flow to debt at about 5%?10%, and EBITDA interest coverage
above 4x.  However, the impact of the merger with UPC Nederland
will largely be neutral in S&P's view, as the roughly 60%
increase in EBITDA will be matched by an increase in long-term
debt of about EUR2.2 billion.

S&P subtracts one notch from the anchor to reflect its view of
the aggressive financial policy of Ziggo's parent, Liberty, and
its expectation that most excess cash will be upstreamed.

Although S&P views Ziggo as "core" to the Liberty group, the
issuer credit rating on parent Liberty is also 'BB-' and
therefore has no impact on Ziggo, as per S&P's group rating
methodology.  S&P's "core" assessment reflects its view of its
strong operational and strategic links to the Liberty group.

The stable outlook on Ziggo mirrors S&P's stable outlook on
Liberty, because it considers Ziggo to be a "core" subsidiary of
Liberty, as per S&P's group rating methodology.  Additionally,
S&P acknowledges Ziggo's strengths that support its stand-alone
credit profile (SACP).

S&P currently does not expect to revise up its assessment of
Ziggo's SACP, owing to the group's aggressive debt policy.  S&P
could, however, revise up its assessment if the group's financial
policy changed and Ziggo's credit metrics improved thanks to
significant debt reduction.  For example, S&P would see debt
sustainably at 4.0x or below as positive for the SACP.  However,
the issuer credit rating would remain at 'BB-' unless S&P was to
upgrade Liberty.

S&P could revise down its assessment of Ziggo's SACP if Liberty
adopted a more aggressive financial policy for Ziggo than S&P
currently expects.  For example, if operating performance
deteriorated, if FOCF generation was challenged by excessive
market competition, or if an increase in acquisition activity or
leveraged shareholder returns caused Ziggo's adjusted debt
leverage to remain sustainably above 5.0x, it would be negative
for the SACP.  However, the issuer credit rating would remain at
'BB-' unless S&P downgraded Liberty or S&P's assessment of
Ziggo's strategic importance to the group were to erode.



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


DME LTD: Fitch Affirms 'BB+' LT Issuer Default Rating
-----------------------------------------------------
Fitch Ratings has affirmed DME Ltd.'s Long-term Issuer Default
Rating (IDR) at 'BB+' with a Stable Outlook.  DME operates
Domodedovo Airport in Moscow.  Fitch has also affirmed the rating
of USD300m senior unsecured notes issued by DME Airport Limited
at 'BB+' with a Stable Outlook.

The group owns the terminal buildings and leases the runways and
other airfield assets from the Russian government.  DME Airport
Limited is a special purpose vehicle (SPV) registered in Ireland
that has on-lent the proceeds from the notes to Hacienda
Investments Ltd, a 100% subsidiary of DME Ltd.

Key Rating Drivers

The recent downgrade of Russia's Long-term foreign and local
currency Issuer Default Ratings (IDR) to 'BBB-' from 'BBB' has no
direct impact on the ratings of DME Ltd and the notes issued by
DME Airport Limited.  DME Ltd's ratings reflect a standalone
profile of the airport and the ratings have some headroom to
accommodate negative economic trends in Russia.  However, as
reflected by the Negative Outlook on the sovereign rating, the
economic and political environment remains volatile and Fitch
will continue to monitor developments.

The ratings are capped at 'BB+' by weak corporate governance and
regulatory uncertainty, although the airport's underlying credit
profile was considered stronger when the ratings were assigned in
November 2013.  In Fitch's view, at the 'BB+' level DME can
withstand sizeable stresses on traffic levels as well as higher
debt service payments and higher leverage following severe rouble
devaluation to approximately 60 RUB/USD.

Fitch expects a contraction in Russia's GDP of 4% in 2015 and a
reduction in passenger traffic at Domodedovo Airport.  Rouble
devaluation and expected economic recession will significantly
reduce propensity to fly, particularly with respect to
international travel, due to the lower purchasing power of
Russian tourists travelling abroad.  International passenger
traffic currently makes up about half of total traffic at DME.
Fitch expects domestic traffic to decline as well, but to a
lesser degree.

Fitch was already factoring in a decline in traffic to 31 million
passengers in 2015, 6% lower than levels expected for 2014.
Fitch now also assumes no growth in passenger traffic for 2016,
compared with 5.5% previously, in line with our assumption for
economic growth in Russia.

DME's debt obligations are denominated in USD and EUR, although
this is partially mitigated by natural hedge as 45% of the
airport's revenues are currently collected in EUR/USD or are
EUR-linked, while most operating and capex costs are in RUB.
Foreign currency revenues are generated through regulated USD
tariffs paid by foreign airlines, some auxiliary aviation
services as well as retail concession contracts.

Fitch expects the share of foreign currency revenues to decline
in 2015 due to lower international traffic and possible pressure
to switch to rouble-based contracts for retail concessions.  But
even with a significant decline of the share of foreign currency
revenues to a hypothetical 20%, they should be sufficient to
cover the company's foreign currency debt service commitments
during 2015-2017.  Senior unsecured notes of USD300m mature in
November 2018 when the bullet payment will be due.

DME's leverage remains fairly low.  DME estimates that
debt/EBITDA would have reached 1.4x at end-2014, assuming an
exchange rate of 60 RUB/USD.  This would be equivalent to 1.6x as
per Fitch's calculation, which adds the present value of long-
term lease obligations to total debt.  In Fitch's rating case,
which assumes some downside potential to traffic and a 60 RUB/USD
exchange rate, debt/EBITDA is now projected to peak at 3x in
2016.  A stress scenario assuming a 15% traffic contraction in
2015 would result in a maximum leverage of 3.7x in 2016 assuming
that DME's investment program is not postponed.  Fitch considers
these figures conservative for the current ratings.

Rating Sensitivities

The ratings could come under pressure if DME's performance
deteriorates beyond Fitch's rating case expectations.  If
Russia's rating is downgraded to 'BB+' or below, DME's ratings
and Outlooks would be aligned with that of the sovereign.



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


SACYR: Nears Debt Restructuring Deal with Banks
-----------------------------------------------
Andres Gonzalez and Jesus Aguado at Reuters report that Sacyr is
close to an agreement with banks on restructuring some EUR2.2
billion (US$2.6 billion) of debt associated with its 9% Repsol
stake.

According to Reuters, El Confidencial, citing financial sources,
said the agreement includes extending the debt's maturity by at
least four years in exchange for renewing guarantees against its
Testa and Valoriza arms, and a commitment to sell a third of the
Repsol stake once the shares recover.

The report said Sacyr is about to finalize an agreement with
Santander, which holds about a quarter of the group's debt, and
is likely to see acceptance from the minimum 75% of lenders
needed to close the deal, Reuters relates.

Sacyr is a Spanish builder.



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


MRIYA AGRO: Creditors Plan to Replace Management
------------------------------------------------
Julie Miecamp, Mark Raczkiewycz and Daryna Krasnolutska at
Bloomberg News report that Mriya Agro Holding Plc's creditors
said they plan to replace the company's management by the end of
next week as talks to restructure about US$1 billion of debt
falter.

"The planned management change will only be for top positions and
will aim at minimizing any changes for the business," Bloomberg
quotes a group of bondholders and lenders owning 60 percent of
the company's debt, as saying in an e-mailed statement.  "It will
broadly rely on existing professionals at Mriya to ensure
business continuity process and to preserve jobs."

The statement said the group, including Ashmore Investment
Management Ltd, T. Rowe Price Associates Inc. and CarVal
Investors, has interviewed six local and foreign candidates in
the last three weeks and will push through its restructuring
proposal if shareholders fail to engage in talks, Bloomberg
relates.  The creditors, who are advised by Rotschild, said
controlling Guta family "ignored" a request to meet on Jan. 12,
Bloomberg notes.

Mriya missed debt payments as Ukraine's conflict with Russia
pushed the economy into recession, Bloomberg relays.  According
to Bloomberg, Vladyslav Lugovskiy, Mriya's chief executive
officer, said in an interview in Kiev on Jan. 14, the company
made its own restructuring proposal that would allow it to repay
bondholders and leasing companies in 10 years.  It offered to
return leased assets to banks including OPT Bank Plc in Kiev,
Bloomberg says, citing Andrey Pavlushyn, chief executive officer
of the unit of OTP Bank Nyrt., Hungary's largest lender,
Bloomberg discloses.

Mriya said last month it would cut jobs and start bankruptcy
proceedings for some units if it didn't reach a deal with
creditors by the end of 2014, Bloomberg recounts.

"In these conditions, it will be difficult to carry out current
activity," Mr. Lugovskiy, as cited by Bloomberg, said.  The
company decided "to hand over the keys of managing the company,
if the creditors want to."

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

                         *     *     *

AS reported by the Troubled Company Reporter-Europe on Nov. 3,
2014, Fitch Ratings downgraded Ukraine-based agricultural
producer Mriya Agro Holding Public Limited's Long-term foreign
currency Issuer Default Rating (IDR) to 'RD' (Restricted Default)
from 'C'.

The downgrade to 'RD' follows the uncured default on a coupon
payment in Sept. 2014, following the expiry of a 30-day grace
period, and no subsequent coupon payment or public announcement
about material progress of debt restructuring discussions with
its creditors.  As a result Fitch believes that a distressed debt
exchange (DDE) is inevitable, which is likely to lead to
significant losses for Mriya's bondholders and other creditors.



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


AIR NEWCO: Moody's Assigns B3 CFR & Rates GBP128MM Loan (P)Caa2
---------------------------------------------------------------
Moody's Investors Service has assigned a corporate family rating
(CFR) of B3 and a probability of default rating of B3-PD to Air
Newco 5 Sarl ("Holdings" or "the Group"). Moody's also assigned a
(P) B2 (LGD3) rating to the senior secured first lien facilities
comprising a GBP320.5 million term loan B and a USD50 million
revolving credit facility and a (P) Caa2 (LGD5) rating to the
GBP128 million second lien term loan for which Holding's indirect
subsidiary Air Newco LLC will be the borrower. The outlook is
positive.

On November 25, 2014, the boards of Advanced Computer Software
Group plc ("ACS" or "the company") and Holding's subsidiary Air
Bidco Limited ("Bidco") announced that they had reached an
agreement on the terms of a recommended cash offer by Bidco for
all the shares of ACS. Air Newco LLC, Bidco, and Holdings are
ultimately controlled by US private equity sponsor, Vista Equity
Partners. The proceeds from the new facilities will be used in
the funding of the acquisition of ACS by Bidco, which is expected
to be completed during the first quarter of this year.

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

Rating Rationale

The B3 CFR is constrained by (1) the company's geographically
concentrated and modest overall revenue base; (2) flexibility in
the financing structure which could see an increase in debt to
fund a return to acquisition driven growth; (3) high opening
leverage and reliance on EBITDA growth for deleveraging to occur.
Additionally, depending on the extent to which it is hedged,
there is exposure to exchange rate fluctuations given US dollar
borrowings but predominantly sterling cash flows.

However, more positively, the B3 rating also recognizes (1) the
high levels of recurring revenues from mission critical products
(2) the company's leadership in a number of market niches; (3) a
track record of solid organic growth, strong margins and robust
cash flow generation; (4) scope for enhanced levels of
profitability as Vista seek to implement their established
operational best practices and; (5) the Group's good liquidity
position.

ACS is an enterprise resource planning (ERP) software provider
with a focus on the United Kingdom, and with clients in both the
public sector (largely NHS organizations) and the private sector,
where its client base is spread across a variety of sectors,
including health and care, the legal profession, financial
service companies, and retailers.

Software product offerings are aimed at a number of specific
niches, where the company's management believe they have market
leadership positions. Within the Business Solutions division (67%
of group revenue), there are four Finance & Procurement (F&P)
products -- which together generate nearly 30% of group revenue
-- each targeted at a different size of company, ranging from
SMEs with less than GBP20 million turnover and 3-10 financial
users, to those with more than GBP500 million turnover and
hundreds or potentially thousands of users of the software. Other
areas covered by this division include legal practice management,
document management, HR & payroll, and learning & training
management. The Health & Care division (15% of group revenue) has
products to enable customers to manage unscheduled telephone
advice and face-to-face care settings, such as A&E urgent care
centers, and walk-in centers, as well as products for care home
management, and community care rostering.

As is typical of the software industry, ACS benefits from revenue
visibility and stability due to the recurring nature of its
maintenance and managed service income streams. As of August
2014, these accounted for 64% of total revenues. A meaningful
element of the remainder can be relied upon with a degree of
certainty as many of the consultancy services carried out for
existing customers are required each year and an element of the
software license revenue is in respect of new user licenses for
existing customers. Revenue visibility is also enhanced by the
low churn rates inherent to the industry, with ACS current
attrition levels being around 5%

The financial profile is constrained by the high Moody's Adjusted
debt to EBITDA at around 8x pro forma for the acquisition,
although Moody's expects deleveraging to occur over the next 12-
18 months via a combination of organic profit growth and the
impact of cost savings initiatives as Vista seek to implement
their established operational best practices. As such, Moody's
expects improvements in the already strong profit margins
although the good underlying free cash generation will be
somewhat held back by the one-off costs of implementing the cost
savings.

Moody's consider ACS liquidity position to be good at the closing
of the transaction. The USD50 million RCF, in addition to pro
forma cash balances of GBP15 million, will be sufficient to cover
the Group's cash needs over the next 12-18 months. Going forward,
Moody's expects positive free cash flow generation driven by
limited working capital needs and low maintenance capex.
Liquidity is further supported by the low yearly debt repayments:
the first lien loan amortizes by 1% per annum and mandatory
prepayments of excess cash flow are subject to first lien net
leverage ratio step downs. The first lien loan has a final bullet
7 years from drawdown, while the second lien bullet repayment is
a year later.

ACS operations are not particularly seasonal in nature with
annual maintenance fees collected on the anniversary of contracts
being signed. The first lien facilities will have only one
financial maintenance covenant, a maximum first lien leverage
ratio, tested only when the RCF is drawn by more than 30%.
Headroom at the outset is material.

Structural Considerations

The (P)B2 rating of the first lien credit facilities, comprising
the Term B Loan and Revolving Credit Facility reflects their
position as secured liabilities ranking ahead of a sizeable
second lien term loan. The first and second lien facilities are
secured, on a first-and second ranking basis respectively, by a
comprehensive security package (including both share pledges and
charges over other assets) granted by the holding companies and
operating companies in the group and benefit from upstream
guarantees from operating subsidiaries that account for at least
80% of the Group's consolidated EBITDA and total assets.

As is customary, the first ranking security will be shared on a
pari-passu basis with banks providing hedging, which in this
instance includes cross currency exchange risks for at least 50%
of total borrowings as well as potentially interest rate hedging.

Outlook

The positive rating outlook reflects Moody's view that ACS should
delever over the 18 months below 6.5x, driven by ongoing organic
growth and the cost saving initiatives identified and in course
of being implemented. The outlook assumes no debt-funded
acquisitions and no dividend payments as well as ongoing good
liquidity and positive free cash flow.

What Could Change The Ratings UP

Positive pressure could arise if the Group continues to grow
organically such that increased profitability and cash flows lead
to leverage towards 6.0x and the percentage of free cash flow to
debt moves towards the high single digits.

What Could Change The Ratings DOWN

Conversely, Moody's could stabilize the outlook if ACS's
operating performance fails to improve such that deleveraging
from the current high level does not occur, or if its liquidity
profile deteriorates or if free cash flow turns negative.

Principal Methodology

The principal methodology used in these ratings was Global
Software 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.

Corporate Profile

Headquartered in Surrey, England, ACS employs more than 2000
staff working from offices in the UK, as well as Ireland, the US
and India. ACS has approximately 20,000 customers and has three
operating divisions. Business Solutions is the largest division
and develops and sells accounting and back office software
solutions, generating around two-thirds of total revenue. Health
& Care generates 15% of total revenue and this division's largest
product, Adastra, is a clinical patient management system to
manage unscheduled telephone advice and face-to-face care
settings, such as A&E urgent care centers, minor injury units,
and walk-in centers. The 365 Managed Services division generates
18% of total revenue and provides a range of fully managed
hosting services and cloud services.

For the last twelve months ending August 2014, ACS reported
revenues and EBITDA of GBP212.2 million and GBP48.4 million
respectively.


CYRENIANS CYMRU: Charity Declared Insolvent
-------------------------------------------
South Wales Evening Post reports that a second employee at
Swansea-based Cyrenians Cymru has been arrested on suspicion of
fraud and the charity has now been declared insolvent.

The Evening Post relates that Chief executive Conrad Watkins said
senior staff were doing their best to keep the various anti-
poverty and homeless projects going, while also supporting the
75-odd staff.

According to the report, Mr. Watkins said the arrest of the 40-
year-old woman, on top of last month's arrest of head of finance
director Mark Davies, was a major blow. Charity bosses instigated
the financial investigation.  The report notes that the alleged
fraud is said to be in the region of GBP800,000.

"It is an absolute tragedy for the people who depend on our
services, and for the staff involved," the report quotes
Mr. Watkins as saying.  "We are all distraught. The Cyrenians has
been going for 42 years, and its frontline services have a very
high reputation. They are a very important part of the approach
in tackling poverty and homelessness in Swansea."

The Evening Post relates that Mr. Watkins said the charity's
funds have been frozen, and that the board of trustees had taken
the decision to declare Cyrenians Cymru insolvent.

He added: "We have had discussions with insolvency
practitioners," the report relays.

Charity bosses have also been liaising with the Welsh Government
to see if funds can be released, the report adds.

Mr. Watkins said steps were being taken to recover any alleged
losses, the Evening Post relates.

Walter Road-based Cyrenians Cymru helps people with tenancy,
housing and health issues, among others.


HMV: Hatfield Store Set to Close
--------------------------------
Welwyn Hatfield News reports that the HMV store in The Galleria
at Hatfield is finally set to close after twice being given a
reprieve.

The Galleria store survived two years ago when the company went
into administration and announced it would be closing over a
hundred stores nationwide, according to Welwyn Hatfield Ne.

But posters were spotted in around Christmas advertising the
closing down sale, with the actual closing date believed to be in
a few weeks time, the report notes.

"It is always unfortunate when any of our stores cease trading.
We are in discussions with a number of tenants regarding
potential openings," the report quoted Tim Stirling, General
Manager at The Galleria, as saying


LYNX FISHING: Former Suppliers Buy Firm Out of Administration
-------------------------------------------------------------
The Journal reports that angling technology pioneers LYNX Fishing
has been bought out of administration by former suppliers and
fellow Northumberland firm GMS.

Prudhoe-based GMS now hopes to market the LYNX-patented Precision
Hand Tool -- a technology which links fishing line and hook
without the need for a knot or a crimp, according to The Journal.

Despite promising publicity surrounding its product launch, LYNX
fell into administration in November following cash flow
difficulties, the report notes.  The move resulted in the loss of
six jobs.

The report says that as a supplier to the Alnwick-based firm, GMS
bought its assets in an undisclosed deal -- which is the first
acquisition for the engineering components specialists.

LYNX managing director Andrew Petherick has been re-employed by
GMS, along with one other member of staff, the report notes.

GMS is looking to distribute the tool in Canada, Latin America
and South Africa and is fulfilling existing orders in Australia,
New Zealand, Japan, Scandinavia and the USA.


MYFERRYLINK: Eurotunnel to Seek Buyer After Appeal Fails
--------------------------------------------------------
BBC News reports that Eurotunnel's MyFerryLink has lost an appeal
against a decision its service should be barred from operating
between Dover and Calais.

According to BBC, the company was told it must quit the cross-
Channel ferry market following a ruling by the Competition Appeal
Tribunal.

It has been operating the service since 2012, BBC discloses.

A spokesman, from Groupe Eurotunnel, said the company would now
seek a buyer for MyFerryLink, BBC relates.

"This decision is illogical.  It reduces competition across the
short straits and it is contrary to the interests of free trade,"
BBC quotes the spokesman as saying.

Eurotunnel bought three ships from SeaFrance after it went bust
in 2012, with MyFerryLink operating up to 24 daily crossings on
the Dover-Calais route, BBC recounts.

In June, the Competition and Market Authority said this meant it
had more than half the market when its rail link was taken into
consideration, BBC relays.


PARAGON OFFSHORE: Moody's Lowers CFR to Ba3; Outlook Negative
-------------------------------------------------------------
Moody's Investors Service downgraded Paragon Offshore plc's
Corporate Family Rating (CFR) to Ba3 from Ba2, senior unsecured
notes to B1 from Ba3, senior secured term loan to Ba1 from Baa3
and senior secured revolver to Ba1 from Baa3. The outlook was
changed to negative. The Speculative Grade Liquidity Rating was
affirmed at SGL-2.

"The downgrade reflects a rapid and significant deterioration in
offshore rig market fundamentals since mid-2014 and the high
likelihood that Paragon's older generation rigs will be
challenged through 2016 to find new contracts and replace cash
flows in a weak oil price environment," said Sajjad Alam, Moody's
Assistant Vice President. "The mostly debt-funded acquisition of
Prospector Drilling Offshore S.A. (Prospector) in November 2014
has also raised Paragon's leverage despite improving overall
fleet quality."

Issuer: Paragon Offshore plc

Downgraded:

  Corporate Family Rating, Downgraded to Ba3 from Ba2

  Probability of Default Rating, Downgraded to Ba3-PD from Ba2-PD

  US$995 Million Senior Unsecured Notes, Downgraded to B1 (LGD5)
  from Ba3 (LGD5)

  US$650 Million Senior Secured Term Loan, Downgraded to Ba1
  (LGD2) from Baa3 (LGD2)

  US$800 Million Senior Secured Revolver, Downgraded to Ba1
  (LGD2) from Baa3 (LGD2)

Outlook Actions:

  Change to Negative from Stable

Affirmed:

  Speculative Grade Liquidity Rating, Affirmed SGL-2

Ratings Rationale

Paragon's Ba3 CFR is restrained by its older generation standard
capability rigs, the need to upgrade its fleet over time, and the
company's limited deleveraging prospects following the
acquisition of Prospector. Paragon's jackups and floaters will
face stiff competition from newer high specification rigs as
offshore markets cope with a large number newbuild deliveries
through 2016. Moreover, the recent collapse in oil prices will
reduce rig demand as upstream customers rethink and rationalize
their drilling plans. Consequently, there is significant downside
risk to Paragon's cash flows beyond 2015 and a high likelihood of
an increasing leverage trend. The Ba3 rating is supported by
Paragon's large and globally diversified rig fleet, US$2.4
billion contracted revenue backlog providing a degree of revenue
visibility through 2015, and our expectation of modest free cash
flow generation through 2016 which could be used to reduce debt,
increase liquidity or improve fleet quality. We also considered
the long, safe and efficient operating track record and the fit-
for-purpose nature of some of Paragon's standard spec rigs with a
number of key customers that should help retain/extend existing
contracts, although dayrates are expected to be lower for any new
contract.

The negative outlook reflects the challenging industry
environment, Paragon's significant uncontracted position and the
likelihood of further degradation in credit metrics. Although we
have not seen any strong downward trend in Paragon's earnings and
cash flows since its separation from Noble Drilling Corporation
(Baa3 stable) in August 2014, we believe we are in the early
stages of a protracted downturn, and the next two years will
prove very challenging for Paragon and offshore drillers that
have older generation rigs. As of November 2014, 22 of Paragon's
41 rigs were scheduled to roll off contract by the end of 2015,
while an additional nine contracts were set to expire in 2016.

While the acquisition of Prospector has added two high quality
rigs (Prospector 1 and Prospector 5) with contractual revenue
protection for two to three years, the company has also added
US$500 million of new debt in exchange for about US$80 million in
annual EBITDA. Prospector has three more jackups under
construction at roughly $200 million each, pursuant to non-
recourse construction agreements. Should Paragon decide to
acquire a third jackup (Prospector 6) in April 2015 and fund it
with debt, there will be more pressure on the balance sheet. It
is highly unlikely that Paragon will acquire the remaining three
newbuilds without securing a multi-year contract first.
Prospector has a US$270 million term loan and US$100 million of
notes in its books and both have change of control provisions.
Paragon is currently exploring refinancing options for this debt.

Despite these negative developments, Paragon should have good
liquidity in 2015 which is captured in the SGL-2 rating. The
company will generate US$100-US$150 million of free cash flow in
2015, thanks to its contract backlog. Like some of its peers,
Paragon may consider reducing/eliminating its cash dividends in
navigating the downturn, which would save up to US$45 million
annually. The company has a US$800 million revolving credit
facility a portion of which was used to acquire the shares of
Prospector. The revolver matures in 2019 and has two financial
covenants -- minimum interest coverage of 3.0x and a maximum net
leverage ratio of 4.0x. The company should have sufficient
headroom for compliance with these covenants. Although
substantially all of the rigs are secured, we believe the company
could sell some assets to raise cash.

Moody's could downgrade Paragon's ratings if it acquires more
rigs with debt financing or if the debt to EBITDA ratio rises
above 4x. Given the anticipated weakness in offshore drilling
markets through 2016, a positive rating action is unlikely in the
near future.

The principal methodology used in these ratings was Global
Oilfield Services Industry Rating Methodology published in
December 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.

Paragon Offshore plc is a publicly traded offshore drilling
contractor incorporated in the United Kingdom that operates in
several major offshore markets around the world.


PLYMOUTH: Future Unclear as Administration Deadline Arrives
-----------------------------------------------------------
The Herald reports that Plymouth Albion is not currently in
administration, but the future remains unclear.

The cash-strapped club was given until today to stave off the
threat of administration after formally issuing a notice of
intention to appoint an administrator on December 31, according
to the Herald.

But the club was granted an extension, with another announcement
due on Jan. 16.

"The board confirms that Plymouth Albion has not gone into
administration and a further statement will be made on Friday,
January 16.  In the meantime no further comment will be made,"
the report quoted a club spokesman as saying.

The Herald understands chairman Dr. Graham Stirling is currently
in the United States on a social visit.

Administration would mean a 20-point deduction for bottom-of-the-
table Albion, all but confirming their relegation to the third
tier of English rugby, the report notes.

Fans have rallied round to support the club, pledging more than
GBP10,000 towards the GBP250,000 needed to avoid going into
administration, the report says.

Half the amount -- GBP125,000 -- has been offered by a mystery
backer given the club can raise the rest of the cash, The Herald
understands, the report adds.

As reported in the Troubled Company Reporter-Europe on Jan. 4,
2012, This is Plymouth said Plymouth Albion Rugby Football
Club Chairman Dr. Graham Stirling has denied rumors the
championship club are about to go into administration.
Speculation has been flying around rugby circles that Albion are
on the verge of that following the shock exit of new coaches
Peter Drewett and Phil Greening from Brickfields, according to
This is Plymouth.  The report notes that the pair walked away
from the club as the city side could not meet their salaries.

Plymouth Albion Rugby Football Club is a rugby union club who
play in Plymouth, England.  The club was founded around 1915 from
a merger between Plymouth RFC and Devonport Albion RFC.  Since
2003, they have played their home games at The Brickfields
stadium.  Albion's traditional strip and club colors are white,
strawberry (red or cherry) and green.


RANGERS FOOTBALL: Loses Appeal of GBP250K League Fine
-----------------------------------------------------
Alliance News reports that Rangers International FC PLC said
Wednesday that it lost its appeal against the GBP250,000 Employee
Benefit Trust Commission fine it was told to pay by the Scottish
Professional Football League.

The club said it will now take the matter to arbitration,
according to Alliance News.

The commission, which was established by the Scottish Premier
League last year, found that Rangers Football Club had been
making payments to an offshore Employee Benefit Trust and making
undisclosed payments to players, the report notes.

The report relates that the Scottish football club went into
administration under the weight of a large debt burden and UK tax
demands, but has since been brought out, although it is still
struggling with its finances and facing boardroom tussles.


SILVERSTONE HOSPITALITY: In Administration, Cuts Jobs
-----------------------------------------------------
Insider Media Limited reports that a business which provided
hospitality for major events at Silverstone, including the
British Grand Prix, has gone into administration.

Jo Milner -- jominer@corkgully.com -- and Stephen Cork --
stephencork@corkgully.com -- partners at insolvency firm Cork
Gully, were appointed to Silverstone Hospitality Ltd, formerly
known as Aspire Hospitality Ltd, by its directors on December 23,
2014, according to Insider Media Limited.

The report notes that hey confirmed to Insider the business had
ceased to trade at the beginning of the month after its contract
with Silverstone Circuits Ltd was "suddenly terminated".

The report says that the administrators added the reasons for the
termination are now been investigated.

The report discloses that it is understood Silverstone
Hospitality employed about 24 full time staff, all of whom have
been made redundant.  In addition, the business called in
hundreds of additional temporary employees for events, the report
notes.

According to information on its website, the business had catered
for a number of British Grand Prixs at Silverstone, as well as
events at Warwickshire's Ragley Hall and the Abu Dhabi Grand Prix
at the Yas Marina Circuit, the report relays.

The company was set up as The Aspire Group in 2006 by
entrepreneur Sean Valentine and Steven Saunders, a former
Michelin-star chef and a writer for Ready, Steady, Cook, who took
up the post of creative director.  Mr. Valentine resigned as a
director of Aspire in December 2013 and Saunders was appointed
chief executive.

In March 2014, Mr. Valentine acquired Inn and Out, an event
catering business in London, and Northampton's Portfolio Events,
the report notes.

A spokesman at Portfolio told Insider the company went into
liquidation in December 2014, nine months after Valentine's
acquisition, the report relays.  Its assets were bought out of
liquidation later that month.

Mr. Valentine is no longer involved with either company.

The administration of Silverstone Hospitality Ltd comes after the
British Racing Drivers' Club (BRDC) appointed a new management
team at Silverstone Circuit to take the business forward, the
report notes.

The report adds that the new team will be led by managing
director Patrick Allen with support from sporting director Stuart
Pringle.


TAURUS CMBS 2006-2: Fitch Cuts Ratings on 3 Note Classes to 'Dsf'
-----------------------------------------------------------------
Fitch Ratings has downgraded Taurus CMBS (UK) 2006-2 plc's class
B, C and D notes:

GBP123.5 million class A (XS0271522103) affirmed at 'BBsf';
Outlook revised to Stable from Negative

GBP18.6 million class B (XS0271523259) downgraded to 'Dsf' from
'CCsf', Recovery Estimate RE80%

GBP0 million class C (XS0271523846) downgraded to 'Dsf' from
'Csf'; RE0%

GBP0 million class D (XS0271524653) downgraded to 'Dsf' from
'Csf'; RE0%

The transaction closed in 2006 and was originally the
securitization of eight commercial mortgage loans with an
aggregate loan balance of GBP447.67 million.  The collateral
comprised 157 properties located throughout England, Scotland,
Wales and Northern Ireland.

KEY RATING DRIVERS

The downgrades reflect the incurred loss from the workout of the
GBP37.1 million Times Square loan and the corresponding principal
deficiency ledger balances on the class B, C and D notes.

The affirmation of the senior notes and revision of their Outlook
reflect the stable performance of the Mapeley Steps loan, the
switch to sequential principal allocation and the significant
redemption of the tranche with proceeds from both remaining loans
since the last rating action in January 2014.

The GBP133.8 million Mapeley Steps loan accounts for 94.1% of the
portfolio balance.  Following the disposal of nine assets since
the last rating action in January 2014, the collateral comprises
84 properties (predominantly offices) occupied by HM Revenue and
Customs (UK government entity, AA+/Stable).  The income is
derived from a service contract between occupier and Mapeley,
rather than standard commercial leases, as well as property
sales.

Due to the complex structure of the Mapeley loan and its
collateral (which involves freehold/long leasehold as well as
short leasehold and serviced-only properties), the reported loan-
to-value (LTV) ratio of 35.2% (based on a 2014 valuation) is of
limited significance from a rating perspective (not least because
it disregards the liabilities of the short-leasehold assets and
assumes performance under the contract).  The 2013 vacant
possession value of around GBP165m is more useful to estimate
recoveries (as it incorporates a possible contract termination).

The loan has been cash sweeping since it remained outstanding at
the September 2013 step-up date.  The quarterly amortization
(combined with sales proceeds) reduced the securitized loan
balance by GBP16.2 million (10.8%) over the past 12 months.  For
one sold asset, the sponsor is paying the difference between
sales price and required release amount with equity, although all
sales prices exceeded the current asset values.  Fitch expects
the loan to repay in full by its maturity in 2021 or thereafter.

The defaulted GBP8.4 million Dundee loan is secured on a single
purpose-built office complex.  The sole tenant, NCR, agreed not
to exercise a break option in 2016 (10 years prior to loan
maturity) for a significant rent reduction to market levels and a
rent-free period.  This development will affect the asset value
(reported at GBP4.3 million) positively and may attract more
interest among property investors.  A standstill agreement is in
place until 31 January 2015 while various exit options are
investigated, including a consensual sale.

The loan amortizes via cash sweep (GBP1m over the past 12
months), although the revised rent will reduce the quarterly
payments. Despite the improved lease profile and recovery
prospects, Fitch expects a loss.

Fitch estimates 'Bsf' principal proceeds of approximately
EUR138.9 milllion.

RATING SENSITIVITIES

A default of the Mapeley Steps loan or termination of the
government contract could result in a downgrade of the senior
notes.


TESCO: S&P Lowers CCR to 'BB+' on Weaker Earnings; Outlook Stable
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on U.K.-based international retailer
Tesco PLC to 'BB+' from 'BBB-'.

S&P also lowered its short-term rating on Tesco to 'B' from 'A-
3'. S&P removed the ratings from CreditWatch, where it placed
them with negative implications on Dec. 10, 2014.  The outlook is
stable.

At the same time, S&P lowered its issue ratings on Tesco's
unsecured notes to 'BB+' from 'BBB-'.  The recovery rating on
these notes is '3', indicating S&P's expectation of meaningful
(50%-70%) recovery in the event of a payment default.

The downgrade reflects S&P's view that, given the structural
changes and competitive pressures that Tesco is facing in the
U.K. market, the credit supportive financial policy measures
announced by Tesco's management are unlikely to sufficiently
improve the group's financial risk profile to maintain an
investment-grade rating.

In S&P's view, the dividend cancellation, cuts to future capital
expenditure, and potential disposal of the dunnhumby business, if
achieved, should enable Tesco to improve its cash position by
more than GBP3 billion over the next financial year ending 2016.
At the same time, however, S&P expects market conditions to
remain highly competitive for retailers, particularly in the
U.K., which accounts for about two-thirds of Tesco's retail sales
and profits. S&P anticipates that increased competitive and price
pressures in the U.K. from both traditional and discount
retailers could suppress any benefits from various management
strategies oriented toward improving trading performance.
Accordingly, S&P anticipates that Tesco's profitability will
continue to remain under pressure as market competition in the
U.K. remains high.

S&P forecasts that Tesco's adjusted EBITDA margins will normalize
at around 7%.  Despite the substantial decline of more than 250
basis points compared to financial year ending 2014, this remains
in line with S&P's criteria's definition of "average"
profitability for the food retail sector.  However, a further
significant drop in margins could weigh on S&P's assessment of
Tesco's business risk profile.

"We assess Tesco's business risk profile at the lower end of the
"strong" category under our criteria.  Our business risk
assessment is supported by the group's competitive advantage and
its scale, scope, and diversity, including its strong position in
the growing U.K. online retail market.  Although the group's
share of the U.K. market has declined, it is far larger, at more
than 28%, than the market shares of its nearest competitors.
Tesco also benefits from its geographic diversification, in
particular its presence in Southeast Asia and Europe.  However,
in our view, the various structural changes and unrelenting
competitive pressure in the U.K. retail market have somewhat
eroded Tesco's business risk profile, which we now assess at the
lower end of the "strong" category," S&P said.

Considering S&P's forecast of adjusted EBITDA of just over GBP4
billion for the next financial year, this will likely result in
adjusted debt to EBITDA of less than 4.5x and adjusted funds from
operations (FFO) to debt of around 15% in FY 2016.  These metrics
are commensurate with an "aggressive" financial risk profile as
defined by S&P's criteria.  S&P's assessment of Tesco's financial
risk profile as "aggressive" also takes into account the
retailer's sizable debt on a lease- and pension-adjusted basis.

S&P derives an anchor of 'bb+' for Tesco, reflecting the
combination of its "strong" business risk profile (albeit at the
low end of this category) and "aggressive" financial risk
profile, in accordance with S&P's criteria.  The anchor is not
affected by modifiers.

S&P's base case assumes:

   -- The U.K. economy's growth of about 3% to decline modestly
      in the next few years, but remain well above the 2% mark.
      The economy is gently cooling and recent survey data
      suggests that U.K. growth is likely to continue at a
      slightly slower pace in the coming quarters.  That said,
      extremely competitive trading conditions will likely
      preclude Tesco from benefitting meaningfully from the
      economic revival in the U.K.

   -- Negative like-for-like sales growth in the U.K. for FY2015
      and FY2016.  S&P do not expect operating performance to
      meaningfully improve in FY2016.  The group's revenues could
      also fall as new retail spaces contribute less.  Overall,
      S&P anticipates the group's reported top line will contract
      by more than 3% in FY2015 and 2% in FY2016.

   -- A substantial decline in Tesco's gross margins in FY2015
      due to a combination of weak topline revenue and high price
      competition.  Gross margins for FY2016 may not improve
      materially but the pace of decline should moderate.  Cash
      flow benefits from restructuring and cost reduction are
      unlikely to be meaningful before FY2017.

   -- A reduction in capital expenditure (capex) to GBP1 billion.

   -- No dividends in FY2016.

Based on these assumptions, S&P forecasts these credit measures
over the FY2015 and FY2016:

   -- An adjusted EBITDA margin of about 7%;
   -- An adjusted debt to EBITDA margin of more than 5x for
      FY2015, improving to less than 4.5x in FY2016 as a result
      of management's financial policy measures;
   -- An adjusted FFO-to-debt ratio of about 13% for FY2015,
      improving to 15% in FY2016;
   -- Negative discretionary cash flow (DCF) in financial year
      2015, but turning positive in 2016 to around 7%-8% adjusted
      DCF to debt, as a result of capex cuts and the cancellation
      of dividends.

The stable outlook reflects S&P's expectation that Tesco's
management will implement the operational initiatives and
financial policies it has announced, enabling the group to reduce
debt, improve adjusted debt to EBITDA to less than 4.5x, and
increase adjusted FFO to debt to more than 15% over the next
financial year ending 2016.  Despite continued tough trading
conditions, the group should be able to maintain its standing as
the largest food retailer in the U.K. and achieve adjusted EBITDA
margins of around 7%.

S&P could lower the ratings on Tesco if its management is unable
to implement the financial policies it has announced, which focus
on reducing leverage.

S&P could downgrade Tesco if it continues to underperform and
management fails to reduce debt through financial policy measures
within the next financial year.  This could result in adjusted
debt to EBITDA staying at more than 5x and adjusted FFO to debt
remaining below 12%.

Rating pressure could also arise from a downward revision of
S&P's assessment of the group's business risk profile.  This
could occur if, as a result of unrelenting competitive pressures,
Tesco is unable to improve its operating performance and this
leads to a further decline in the group's profitability.

S&P could raise the rating on Tesco if management executes
further credit-enhancing financial policies to reduce debt.  To
have a positive credit impact, these targeted debt reduction
measures would have to contribute to a sustainable improvement in
Tesco's financial risk profile.

S&P considers an adjusted FFO-to-debt ratio sustainably higher
than 20% and an adjusted debt-to-EBITDA ratio of less than 4x as
commensurate with a higher rating, absent any material weakening
of Tesco's business risk profile.



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


* BOOK REVIEW: Competitive Strategy for Health Care Organizations
-----------------------------------------------------------------
Authors: Alan Sheldon and Susan Windham
Publisher: Beard Books
Softcover: 190 pages
List Price: $34.95
Review by Francoise C. Arsenault
Order your personal copy today at http://bit.ly/1nqvQ7V

Competitive Strategy for Health Care Organizations: Techniques
for Strategic Action is an informative book that provides
practical guidance for senior health care managers and other
health care professionals on the organizational and competitive
strategic action needed to survive and to be successful in
today's increasingly competitive health care marketplace. An
important premise of the book is that the development and
implementation of good competitive strategy involves a profound
understanding of change. As the authors state at the outset:
"What may need to be done in today's environment may involve
great departure from the past, including major changes in the
skills and attitudes of staff, and great tact and patience in
bringing about the necessary strategic training."

Although understanding change is certainly important in most
fields, the authors demonstrate the particular importance of
change to the health care field in the first and second chapters.
In Chapter 1, the authors review the three eras of medical care
(individual medicine, organizational medicine, and network
medicine) and lay the groundwork for their model for competitive
strategy development. Chapter 2 describes the factors that must
be taken into account for successful strategic decision-making.
These factors include the analysis of the environmental trends
and competitive forces affecting the health care field, past,
current, and future; the analysis of the competitive position of
the organization; the setting of goals, objectives, and a
strategy; the analysis of competitive performance; and the
readaptation of the business, if necessary, through positioning
activities, redirection of strategy, and organizational change.

Chapters 3 through 7 discuss in detail the five positioning
activities that are part of the model and therefore critical to
the development and implementation of a successful strategy:
scanning; product market analysis; collaboration; restructuring;
and managing the physician. The chapter on managing the physician
(Chapter 7) is the only section in the book that appears dated
(the book was first published in 1984). In this day of physician
owned hospitals and physician-backed joint ventures, it is
difficult to envision the physician in the passive role of "being
managed." However, even the changing role of physicians since the
book's first publication correlates with the authors' premise
that their model for competitive strategic planning is based
exactly on understanding and anticipating change, which is no
better illustrated than in health care where change is measured
not in years but in months. These middle chapters and the other
chapters use a mixture of didactic presentation, graphs and
charts, quotations from famous individuals, and anecdotes to
render what can frequently be dry information in an entertaining
and readable format.

The final chapter of the book presents a case example (using the
"South Clinic") as a summary of many of the issues and strategic
alternatives discussed in the previous chapters. The final
chapter also discusses the competitive issues specific to various
types of health care delivery organizations, including teaching
hospitals, community hospitals, group practices, independent
practice associations, hospital groups, super groups and
alliances, nursing homes, home health agencies, and for-profits.
An interesting quote on for-profits indicates how time and change
are indeed important factors in strategic planning in the health
care field: "Behind many of the competitive concerns lies the
specter of the for profits.

Their competitive edge has lain until now in the
excellence of their management. But developments in the past half
decade have shown that the voluntary sector can match the for
profits in management excellence. Despite reservations that may
not always be untrue, the for-profit sector has demonstrated that
good management can pay off in health care. But will the
voluntary institutions end up making the same mistakes and having
the same accusations leveled at them as the for-profits have? It
is disturbing to talk to the head of a voluntary hospital group
and hear him describe physicians as his potential competitors."


                            *********

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 2015.  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 * * *