TCREUR_Public/150121.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, January 21, 2015, Vol. 16, No. 14



SARENS BESTUUR: S&P Affirms 'BB' Corp. Credit Rating


SCANDFERRIES APS: S&P Puts 'BB-' CCR on CreditWatch Negative


HAMBURG AIRWAYS: Starts Preliminary Insolvency Process
PHOTON LABORATORY: German Court Commences Insolvency Process
TELE COLUMBUS: S&P Affirms 'B+' Preliminary CCR; Outlook Stable


GREECE: Fitch Says Election Raises Banks' Liquidity Risks


ARCADOM: Put Under Liquidation After Creditor Talks Fail


KENMARE RESOURCES: Seeks to Finalize Debt Restructuring Deal
PROVIDE BLUE 2005-1: Fitch Affirms BB-' Rating on Class E Tranche
SVG DIAMOND II: Moody's Affirms Caa2 Ratings on 2 Note Classes


EURASIAN BANK: S&P Lowers Rating on Subordinated Notes to 'B-'
NOMAD LIFE: A.M. Best Affirms 'b+' Issuer Credit Rating


ONEX WIZARD: S&P Assigns Preliminary 'B+' CCR; Outlook Stable


HYDRA DUTCH: Moody's Assigns (P)B2 Rating to New EUR160MM Notes


OLTCHIM SA: Reorganization Plan Will Stipulate Sale


BANK ADAM: Bank of Russia Revokes Banking License
INTERCAPITAL-BANK: Bank of Russia Revokes Banking License
KUZBASSRAZREZUGOL OJSC: Moody's Withdraws B3 Corp. Family Rating
RED & BLACK: Fitch Keeps 'BB+' Rating on Class C Notes on RWN


BANK BASIS: Court Declares Liquidation as Illegal
FERREXPO FINANCE: Fitch Assigns 'CCC'(EXP)' Rating to Bonds
FERREXPO PLC: Moody's Rates New Unsecured Notes '(P)Caa2'
FERREXPO PLC: S&P Cuts 'CCC+/C' Corp. Credit Rating; Outlook Neg.

U N I T E D   K I N G D O M

ALPARI UK: In Administration After Rescue Talks Fail
CLYDE VALLEY: In Liquidation; Seeks New Investors
CYRENIANS CYMRU: Insolvency No 'Immediate Threat' to Programmes
HSS FINANCING: S&P Puts 'B' CCR on CreditWatch Positive
JACKSONS HOTEL: Goes Into Receivership

LB UK: February 6 Submission Deadline Set for Proofs of Debt
LONDON & REGIONAL: Fitch Affirms 'Bsf' Rating on Class C Notes
MIZZEN MEZZCO: Fitch Says Cinven Acquisition No Rating Impact
VEDANTA RESOURCES: Moody's Affirms 'Ba1' CFR; Outlook Negative
WAGAMAMA LTD: S&P Assigns Preliminary 'B-' CCR; Outlook Stable



SARENS BESTUUR: S&P Affirms 'BB' Corp. Credit Rating
Standard & Poor's Ratings Services affirmed its 'BB' long-term
corporate credit rating on Belgium-based Sarens Bestuur N.V.  The
outlook is stable.

At the same time, S&P assigned its 'BB' issue rating to the
group's proposed EUR75 million senior unsecured notes to be
issued by Sarens Finance Co. N.V. (Sarfin NV).  The recovery
rating on this debt instrument is '3', indicating S&P's
expectation of meaningful (50%-70%) recovery in the event of a
payment default.

The issue and recovery ratings on the proposed notes depend,
among other factors mentioned below, on S&P's receipt and
satisfactory review of all final transaction documentation.  If
Standard & Poor's does not receive final documentation within a
reasonable time frame, or if final documentation departs from
materials reviewed, S&P reserves the right to withdraw or revise
its ratings.  Potential changes include, but are not limited to,
utilization of new notes proceeds, maturity, size and conditions
of the notes, financial and other covenants, security and

The rating reflects S&P's assessment of Sarens' business risk
profile as "fair" and of its financial risk profile as
"significant," as S&P's criteria define these terms.

Sarens is a leading global provider of large crane equipment,
servicing a diverse range of industries and clients.  The group
has one of the world's largest fleet of large cranes and a strong
track record and reputation.  S&P considers there are high
barriers to entry for potential competitors in this niche market.
The group's wide geographic and end-market diversity reduces the
cyclicality that S&P sees in many equipment rental providers.
However, geographic diversity also increases logistical and
subcontracting costs.  The group's cranes are always supplied
with drivers and, if required, a specialist team of engineers and
support workers to assist the build in/build out process and
advise end clients on site.  These factors lead to lower margins
compared with more-traditional equipment rental companies.

Sarens is exposed to several particularly cyclical and volatile
end markets, which has resulted in revenue contraction and
absolute EBITDA declines in the past when demand has suddenly
fallen.  The group's recent rapid expansion into countries that
S&P considers carry higher risk under its criteria could increase
volatility of demand in future.  Compared with many other issuers
that have a "fair" business risk profile, Sarens' business
offering is quite niche.  It has to continuously manage its large
crane fleet's age, size, location, and composition to
successfully maintain a healthy project pipeline and cash flows.
The group is very capital-intensive and currently exhibits "below
average" return on capital (defined as less than 9% in S&P's

S&P considers that the group's operating cash flow is
structurally sufficient to cover debt service, working capital
requirements, and maintenance capital spending.  In recent years,
the group has invested heavily to expand its global fleet,
resulting in negative free operating cash flow (FOCF) over this
time.   S&P expects this trend to continue over the rating
horizon of 12-18 months.

S&P considers Sarens' risk-management policies to be adequate.
The group generates a large portion of its revenues in foreign
currencies, and it hedges cash flows to protect against foreign
exchange risk.  The group's financial obligations are mainly
euro-denominated.  As a majority family-owned group, S&P
considers Sarens' access to equity markets to be restricted.  The
group's capital structure includes a EUR43 million subordinated
loan that matures in December 2016.  S&P considers it highly
unlikely that this instrument will be repaid before this date.

The Sarens family own 78% of the business and the remaining 22%
stake is held by Waterland Private Equity.  S&P considers
Waterland to be a long-term strategic investor; as its stake is
below 40%, S&P do not take a negative view of the partial
private-equity ownership in S&P's financial policy assessment.
S&P views any potential increase of Waterland's stake to above
40% as pure event risk, and S&P considers it highly unlikely to
occur through its rating horizon.

S&P assess the group's management and governance as "fair,"
reflecting its experienced management team and clear operational
and financial goals.

S&P's base case assumes:

   -- Stable growth fundamentals in Sarens' end markets, with the
      global recovery staying on track;

   -- Revenue growth of about 4% to more than EUR610 million; and

   -- EBITDA margins strengthening to about 26%-27%, primarily as
      a result of improved fleet occupation rates and lower
      subcontracting and transportation costs.

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

   -- Standard & Poor's-adjusted debt to EBITDA of about 3.5x;

   -- Funds from operations (FFO) to debt of about 23%.

The group has exhibited negative FOCF during a recent period of
heavy investment and rapid expansion.  S&P expects FOCF to debt
to remain weak over the rating horizon due to the business' need
for high capital expenditure (capex).

The outlook is stable.  S&P expects the good growth environment
that currently benefits the heavy lifting crane industry to
continue through 2015.  S&P expects that Sarens will be able to
grow revenues and improve its margins over the rating horizon.
The group's free operating cash flows will likely be weak in
fiscal 2014 and 2015 due to ongoing investment in its crane

S&P could lower the ratings if Sarens were to experience margin
pressure, or poorer cash flows, leading to weaker credit metrics,
specifically if debt to EBITDA were to rise to more than 4x and
FFO to debt were to weaken to less than 20%.  Rating pressure may
also stem from aggressive debt-funded acquisitions or shareholder

S&P considers that rating upside is limited at this stage,
because Sarens is following a strategy of growth and investment,
leading to weak supplementary credit metrics -- specifically free
operating cash flow to debt -- for the next 12-18 months.  S&P
could consider raising the rating if the group's return on
capital improved to levels S&P defines as "average" compared with
peers (defined as 9% to 18%) or if Sarens were to reduce its
leverage to less than 3x and exhibit sustained positive FOCF at
the same time.


SCANDFERRIES APS: S&P Puts 'BB-' CCR on CreditWatch Negative
Standard & Poor's Ratings Services said that it has placed its
'BB-' long-term corporate credit rating on Denmark-based ferry
services provider Scandferries Aps (known as Scandlines) and 'BB'
issue rating on the company's senior secured debt on CreditWatch
with negative implications.  The recovery rating on the senior
secured debt remains at '2', indicating S&P's expectation of
substantial (70%-90%) recovery in the event of a payment default.

The CreditWatch placement reflects S&P's view of uncertainty over
the implications of the disposal of the Helsingor-Helsingborg
(HeHe) route for Scandlines' future capital structure.  In S&P's
view, it might trigger, depending upon the ultimate use of
proceeds, an increase in the ratio of Standard & Poor's-adjusted
debt to EBITDA, weakening Scandlines' financial risk profile,
which S&P currently assess as "aggressive" (financial sponsor-5).
Before the disposal, Scandlines already had limited financial
flexibility for an increase in leverage at the 'BB-' rating
level, as adjusted debt to EBITDA was close to S&P's guideline of
less than 5.0x.  Furthermore, S&P believes that the company's
adjusted debt will increase this year on account of the two new
vessels on order for the Gedser-Rostock route to be delivered at
the end of 2015 and financed via a limited recourse special-
purpose vehicle (SPV).  However, S&P acknowledges that Scandlines
maintained its profitable growth in 2014, which S&P forecasts to
continue in 2015.

Scandlines is fully owned by 3i Group PLC, a U.K.-based private
equity company.

The ratings on Scandlines continue to be constrained by S&P's
assessment of the group's financial risk profile as "aggressive."
Scandlines' business risk profile, which S&P assess as "fair,"
mitigates this.

S&P intends to resolve the CreditWatch placement after it has
finalized its assessment of the company's future capital
structure and financial leverage.  Furthermore, S&P will update
its assessment of Scandlines' ability to deliver in line with its
previously stated expectations, in particular that Scandlines'
financial policy is not likely to prevent its leverage ratio from
sustainably improving to less than 5.0x over the next 18 months.

The CreditWatch placement indicates that, in S&P's view, there is
a one-in-two chance of a downgrade within the next three months.


HAMBURG AIRWAYS: Starts Preliminary Insolvency Process
ch-aviation reports that Hamburg Airways has initiated
preliminary insolvency proceedings with a Hamburg district court
appointing Sven-Holger Undritz -- -- as
the carrier's interim administrator.  Undritz played a similar
role in the 2010 bankruptcy of Hamburg Airways' predecessor,
Hamburg International, the report notes.

Since suspending operations late last month, the airline has been
in talks with creditors and potential investors -- among which
Poland's Enter Air (OF, Warsaw Chopin) is rumored to be part of
-- in an effort to find a way out of its current financial
quagmire, according to ch-aviation.

Should a viable solution be found, the German civil aviation
authority (Luftfahrtbundesamt - LBA) will reinstate the carrier's
suspended Air Operators Certificate (AOC) paving the way for it
to resume operations, the report says.

PHOTON LABORATORY: German Court Commences Insolvency Process
pv magazine reports that the District Court of Aachen opened
insolvency proceedings against the Photon Laboratory GmbH on
January 9, according to official court documents.

pv magazine relates that the court, which opened proceedings
based on a claim from a creditor received on June 16, has
appointed Aachen attorney Andreas Schmitz as the company's
insolvency administrator. Creditors have until February 13 to
register their claims. The court has set a creditors meeting for
March 12, the report notes.

Mr. Schmitz is also administrating the insolvent Photon Holding
GmbH. The Aachen court opened insolvency proceedings against
Photon Holding in July due to illiquidity and indebtedness,
likewise following a creditor petition, the report recalls.  A
few weeks before the move, creditors had filed requests for
insolvency proceedings to be opened against both Photon
Publishing GmbH and Photon Holding.

According to the report, Photon has said the Aachen District
Court opened preliminary proceedings for the company due to a tax
obligation the company had to the tax office of Aachen. While the
group stressed that it did not dispute the tax obligation, it
said it had submitted tax refund claims approximately equal to
the amount owed but which had yet to be validated.

The German company's assets include industry magazines Photon
International and the German Photon Das Solarstrom-Magazin, the
report notes.

A separate but affiliated company, Photon Europe GmbH, filed for
insolvency at the end of 2012. In the course of those
proceedings, the company's business was transferred to Photon
Publishing GmbH, which was headed by virtually the same
management as the bankrupt company. Creditor claims at the time
totaled more than EUR9 million, pv magazine reported.

TELE COLUMBUS: S&P Affirms 'B+' Preliminary CCR; Outlook Stable
Standard & Poor's Ratings Services affirmed its 'B+' long-term
preliminary corporate credit rating on German cable operator Tele
Columbus, which the ratings agency initially assigned on Oct. 6,

The rating will remain preliminary until the planned IPO and
EUR300 million equity injection are executed and the EUR375
million term loan, EUR75 million capital expenditure facility,
and EUR50 million revolving credit facility (RCF) are put in
place, replacing all current outstanding debt.

S&P aims to assign a final corporate credit rating within 90 days
of this publication.

"The corporate credit rating is constrained by Tele Columbus'
still-significant reliance on third-party cable TV networks and a
partial upgrade to the highest industry standards.  The company's
limited scale and diversity also constrain the rating, as do huge
investment outlays and significant execution risks as the company
seeks to accelerate its transition away from basic cable TV
offerings toward the model of its successful European and German
peers.  If it manages to do so, the transition should support
customer retention, increase bundle penetration, and lift its
average revenues per user (ARPU) through upselling activity.  The
sheer level of investments involved in the various projects
related to this transformation, spanning technical upgrades, own
network extension, and commercial initiatives, generate a risk,
including a timing uncertainty, which could materially affect
overall performances in a very competitive environment.  In our
view, there is a risk that, at renewal dates, its housing-
association direct customers would churn to larger and generally
more advanced cable providers Kabel Deutschland or Unitymedia, or
to Deutsche Telekom's asymmetric digital subscriber line (ADSL)
offerings, if Tele Columbus cannot then offer upgraded and
converged services," S&P said.

"However, the long-term nature of its housing-association
contracts provides the company some visibility and leeway to
deploy its investment plan.  We also acknowledge that the company
has been able to significantly raise its broadband market share
against incumbent Deutsche Telekom in the recent past and that it
boasts leading local cable market shares in Eastern Germany,
testifying to the company's successful commercial achievements
within its own upgraded footprint, and also reflecting the
technical edge of an upgraded cable offer over inferior ADSL
technology," S&P added.

The stable outlook reflects S&P's assumption that the company
will maintain its high operating efficiency in the next year,
successfully renegotiate maturing housing-association contracts,
and continue to deliver on its operational targets, which should
be illustrated by positive revenue growth and improving EBITDA
margins.  In addition, S&P anticipates FOCF will improve from
negative in 2015 to about breakeven in 2016, adjusted debt to
EBITDA will remain below 4x, and liquidity will remain adequate.

Rating downside would stem from evidence of rising churn levels
and loss of customers, which could come from delays or setbacks
in the company's network investment program, various execution
issues, or customer losses to Deutsche Telekom or other cable
providers at contract renewal dates.  In addition, heavy capital
outlays not properly matched by revenues could adversely affect
liquidity.  Therefore, while S&P sees Tele Columbus as adequately
funded to match its network upgrade program over the next two to
three years, we would likely see rating pressure build if Tele
Columbus depleted its cash balances and started to draw on its
RCFs if revenues or EBITDA failed to grow.  Given the company's
cash-generation profile, adjusted leverage staying at about 4x
could also put downward pressure on the rating.

Rating upside appears limited for the next two to three years,
but could occur if the company successfully executes its
investment plan and manages to migrate an increasing portion of
its customers onto its own network and onto bundled offers, while
maintaining leverage below 4x and lifting free cash flow
generation enough to represent about 10% of adjusted debt.


GREECE: Fitch Says Election Raises Banks' Liquidity Risks
Political uncertainty in Greece before and after the election on
January 25 will raise liquidity and funding risks for banks,
Fitch Ratings says.  But potential liquidity strains should be
manageable since the banks are better prepared to withstand
deposit outflows than when elections were last held in 2012, as
long as access to Eurosystem facilities is maintained.
Nevertheless, prolonged uncertainty would be negative for the
banks' credit profiles.

Fitch said, "There have been outflows of private-sector deposits
since mid-December 2014 with signs of a shift to other
investments, maturing time deposits kept at sight and cash
withdrawals. We estimate deposit outflows of over 2% of total
banking system deposits so far and expect further withdrawals,
particularly in the weeks around the election date."

"We believe the outflows will not be as large as those across the
system in May and June 2012 (9.3% of total private sector
deposits as of end-April 2012), when two rounds of parliamentary
elections took place. In our view, there was greater uncertainty
during the previous elections. They took place in the middle of
the eurozone crisis when Greece's exit from the bloc was a
greater risk than it is now, the government had just restructured
its privately held debt and social unrest was at its peak."

The system's liquidity is also under pressure from margin calls
following the rise of the Swiss franc after the Swiss central
bank removed a cap against the euro on January 15. Greek banks
have currency swaps on their Swiss franc-denominated assets
(largely mortgages), which totalled EUR12.5 billion (or 3.5% of
total assets of the four largest banks) at end-2013. These assets
are predominantly hedged, limiting any profit and loss impact.

Nevertheless, banks have built up liquidity buffers and have
access to central bank funding that should enable them to
withstand substantial liquidity stress. Sector consolidation into
just four large banks with significantly smaller loan portfolios
has reduced funding needs. Liquid assets increased following the
capital injection of EUR36 billion as part of a two-stage
recapitalization process in 2013 and 2014. These improvements
helped to support the banks in issuing EUR2.3 billion of senior
debt instruments in 2014, further enhancing their liquidity.

"We expect most of the four Greek banks have unencumbered ECB-
eligible assets to meet any outflows of deposits similar to those
seen around the mid-2012 election. On a precautionary basis,
banks may have also applied for the emergency liquidity
assistance (ELA) facility from the Bank of Greece, in preparation
to at least offset the non-eligibility of self-retained
government-guaranteed bonds at the ECB from March 2015. We
believe Greek banks could tap the ELA to offset a further
substantial liquidity stress," Fitch said.

But the banks will face more pressure if political risk remains
high. The banks' access to ECB liquidity facilities is dependent
on Greece being under the international bailout program, and they
may be more reliant on this as the repo market for their EFSF
bonds becomes more risk adverse. A prolonged election process and
deadlock between the new Greek government and the Troika in
negotiating an extension of the bailout is not our expectation,
but would increase political uncertainties and risks for banks.
This could increase structural funding imbalances if deposits
take a long time to return to the system. Post the 2012 election,
the sector recovered about 70% of May to June 2012 deposit
outflows in 2H12.

An extended period of political uncertainty would also be
negative for already weak asset quality. Strategic defaulters
could take advantage of the situation and stop paying their dues,
although this would likely be temporary. Depending on the
election outcome, there is a risk that reforms to insolvency
laws, which would help banks tackle their large stock of problem
loans, could be postponed or terminated.

Fitch placed Greece's sovereign rating on Negative Outlook
(B/Negative) on January 16.  The sovereign rating action does not
automatically trigger negative rating actions on the 'B-'/Stable
ratings of the four Greek banks, which are driven by their stand-
alone profiles. But further pressure on the operating environment
could eventually affect banks' ratings too. The four banks
together held EUR20.8bn of Greek sovereign debt at end-2013 (a
large portion of which in T-bills), which was around 60% of their
equity at end-1H14, so they remain sensitive to the sovereign's


ARCADOM: Put Under Liquidation After Creditor Talks Fail
Christian Keszthelyi at Budapest Business Journal reports that
liquidation has been ordered on Arcadom, which is indirectly
owned by construction industry magnate Sandor Demjan.

Arcadom told Hungarian news agency MTI on Jan. 19 that if talks
with creditors break down, Mr. Demjan will be required to
compensate suppliers from his personal fortune, BBJ relates.

According to BBJ, the reports said Mr. Demjan has already
injected HUF8 billion of his personal assets in Arcadom in order
to keep the company operating in the past several years.

Arcadom is a building company based in Hungary.


KENMARE RESOURCES: Seeks to Finalize Debt Restructuring Deal
The Irish Times reports that Kenmare Resources, which was hit by
the fall in commodity prices, is seeking to finalize a deal with
lenders to restructure its debt load by the end of the month.

Kenmare has struggled with the size of its debt and a succession
of operating problems, including power-supply interruptions, The
Irish Times relates.

According to The Irish Times, Kenmare's market capitalization in
London is now just GBP70 million, and the company, which reported
a US$31.8 million loss for the first half of 2014, recorded net
debt of US$312 million at June 30.  Bank loans came to US$349.6
million, The Irish Times notes.  Kenmare has about US$80 million
of debt coming due at the end of 2015 and the miner and its banks
are in talks about a restructuring that would follow two similar
exercises last year, The Irish Times relays.

People close to the talks say the miner's lenders -- among them a
number of development banks -- are inclined to be supportive,
saying Kenmare's mine is more important in global markets, The
Irish Times discloses.  But valuation is a problem, The Irish
Times states.

Kenmare Resources is an Irish mineral sands miner.  The company
is based in Dublin.

PROVIDE BLUE 2005-1: Fitch Affirms BB-' Rating on Class E Tranche
Fitch Ratings has affirmed the Provide Blue 2005 Series, with
Outlook changes to two tranches as follows:

Provide Blue 2005-1 PLC:
Class D (ISIN DE000A0E6NX2): affirmed at 'BBBsf'; Stable Outlook
Class E (ISIN DE000A0E6NY0): affirmed at 'BB-sf'; Stable Outlook

Provide Blue 2005-2 PLC:
Senior credit default swap: affirmed at 'AAAsf'; Stable Outlook
Class A+ (ISIN DE000A0GHZR1): affirmed at 'AAAsf'; Stable Outlook
Class B (ISIN DE000A0GHZS9): affirmed at 'AAsf'; Stable Outlook
Class C (ISIN DE000A0GHZT7): affirmed at 'Asf'; Outlook revised
to Stable from Negative
Class D (ISIN DE000A0GHZU5): affirmed at 'BBsf'; Outlook revised
to Stable from Negative
Class E (ISIN DE000A0GHZV3): affirmed at 'CCCsf'; Recovery
Estimate (RE) revised to 70% from 60%

Both transactions are synthetic securitizations referencing
portfolios of residential mortgage loans originated by BHW
Bausparkasse AG.


Stable Asset Performance

Both transactions have reported stable asset performance over the
past 12 months with three months plus arrears decreasing to
EUR3.5 million (from EUR3.9 million) for 2005-1 and to EUR9.4
million (from EUR11.1 million) for 2005-2, respectively. As a
share of the outstanding principle balance, three months plus
arrears increased during the same period, driven by strong
repayments observed in the last three quarters.

Strong Repayments Support Credit Enhancement

The annualized principal repayment rate is 68% for 2005-1 during
September-November 2014 and 45% for 2005-2 during July-September.
Repayments are driven by upcoming maturities and interest reset
dates, and are likely to remain high during 2015. Strong
repayments have contributed to an increase in credit enhancement
(CE) relative to the reference claims principal balance, which is
reflected in today's rating affirmation and Outlook revision.

Loss allocation has remained fairly high and reduced nominal CE
for the class E notes in the past 12 months by EUR0.4 million to
EUR6.1 million for 2005-1 and by EUR1.5 million to EUR5 million
for 2005-2. CE as a percentage of the outstanding balance for the
class E notes accounts for 3.5% for 2005-1 and 0.6% for 2005-2.

Fitch expects loss allocation to be in excess of the available
threshold for 2005-2 as the available CE is not sufficient to
absorb the loss expectation on the class E notes in our base case
scenario. Fitch does not expect losses to allocated 2005-1's
class E notes.

Following the regulatory call of 2005-1 on the January 2010
payment date, the senior CDS and class A+, A, B and C notes were
paid in full. The amortization of the class D and E notes is
currently limited to proceeds received from cures and recoveries
of the overdue reference claims exceeding new delinquencies in
each period.


Performance is dependent on the level of defaults and recovery
once a borrower has defaulted. While Fitch expects continued
robust performance of German mortgage loans, unexpectedly sharp
deterioration of economic fundamentals could accelerate loss
allocation towards the class E notes and threshold amount,
adversely affecting CE for the junior notes and resulting in a

In addition, for seasoned portfolios re- and prepayments may
increase CE and reduce the potential for new credit events. If
the reference claims repay earlier than final maturity this may
reduce loss potential and increase CE, leading to potential
upgrades across the transactions.

SVG DIAMOND II: Moody's Affirms Caa2 Ratings on 2 Note Classes
Moody's Investors Service announced that it has upgraded the
ratings of the following notes issued by SVG Diamond Private
Equity II Plc:

  EUR55 million (currently EUR 2.7 million outstanding) A-1
  Notes, Upgraded to Aa3 (sf); previously on Dec 3, 2010
  Downgraded to Baa2 (sf)

  US$71.6 million (currently US$3.5 million outstanding) A-2
  Notes, Upgraded to Aa3 (sf); previously on Dec 3, 2010
  Downgraded to Baa2 (sf)

  EUR76.5 million B-1 Notes, Upgraded to Baa3 (sf); previously on
  Dec 3, 2010 Downgraded to Ba2 (sf)

  US$40 million B-2 Notes, Upgraded to Baa3 (sf); previously on
  Dec 3, 2010 Downgraded to Ba2 (sf)

Moody's also affirmed the ratings of the following notes issued
by SVG Diamond Private Equity II Plc:

  US$47.8 million C Notes, Affirmed B1 (sf); previously on Dec 3,
  2010 Downgraded to B1 (sf)

  EUR43 million M-1 Notes, Affirmed Caa2 (sf); previously on Dec
  3, 2010 Downgraded to Caa2 (sf)

  US$20.3 million M-2 Notes, Affirmed Caa2 (sf); previously on
  Dec 3, 2010 Downgraded to Caa2 (sf)

SVG Diamond Private Equity II Plc (SVG II), issued in February
2006 is a private equity collaterized fund obligation ("CFO")
backed by private equity funds. The portfolio is managed by
Aberdeen SVG Private Equity Advisers Limited. This transaction is
predominantly composed of buyout funds.

Ratings Rationale

According to Moody's, the rating actions taken on the notes are
primarily the result of an improvement in the
overcollateralization ratios of the rated notes pursuant to the
amortization of the portfolio. Class A-1 and A-2 notes have
amortized by approximately EUR60.5 million (57% of its original
balance) in September 2014.

Based on March 2014 financial information, the EUR264 million
outstanding notional of the rated notes are collateralized by a
private equity fund share portfolio valued in EUR412.6 million
and available cash of EUR53.4 million. Moody's assessed the
coverage provided by the value of the underlying portfolio of
private equity fund shares (NAV) for each class of rated notes to
determine their credit strength, and measured the drop in NAV
that would lead to each class of rated notes realizing a loss.
The current NAV would need to decrease by approximately 80% for
the Class A notes to experience a loss over a 5 year horizon
after taking into account senior expenses and interest payments.

Moody's expects the Class A notes to be fully repaid along with
interest in 2015, and the risk of a default on an interest
payment to the rated notes before then remote. Based on the
November 2014 trustee report, available cash of EUR71 million is
sufficient to cover the reserve account requirements (78.6 % of
EUR55.1 million of unfunded commitments and six months of senior
expenses) and the expected senior expenses and interest payments
of around EUR 12 million, leaving enough cash to fully repay the
class A notes in March 2015. Given class A notes is essentially
collateralized by cash, Moody's has exceeded the implicit A1 (sf)
rating cap it has placed on CFO notes.

The liquidity available to fund ongoing senior expenses, interest
payments and draw-downs on unfunded commitments is at an adequate
level. Moody's analyzed the total amount of reported draw-downs
and distributions of the PE CFO since closing, which allows us to
also adjust Moody's projections of draw-downs and distributions
over the coming years. Given the seasoning of the underlying
funds, Moody's expect potential draw-downs to be low over the
coming years, and future distributions from the underlying funds
to continue at a steady pace as private equity funds exit their

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

Private equity CFO income depends on the distributions coming
from its underlying investments in the multiple private equity
funds portfolio. Over the life of the transaction, distributions
will be used to pay operating expenses, unfunded commitments (or
over commitments) and interest on the notes. Therefore, the
amount and the timing of such distributions are key for the
performance and fulfillments of the fund's obligations. If the
amount of net cash flow (i.e. distributions minus draw-downs on
unfunded commitments) is lower than expected or the distribution
is delayed, the rating may be negatively impacted, and vice

Loss and Cash Flow Analysis:

Moody's complemented its analysis by considering the aggregated
cash flow projection based on random Internal Rate of Return
(IRR) draws from the student-t distribution in combination with a
J-curve assumption on cash flow distributions. For each
simulation, the aggregated cash-flows resulting from the asset
modelling is flushed into a simplified waterfall based on the
transaction's documentation.

Stress Scenarios:

In addition to the base case described above, Moody's also
considered a scenario whereby the value of the private equity
fund share portfolio dropped by 25%. This scenario is supposed to
represent the potential impact of a sudden shock to the economy.
This run generated model outputs that were within one notch of
the base case model results.

Methodology Underlying the Rating Action:

The principal methodology used in this rating was "Moody's Global
Approach to Monitoring Private Equity Collateralised Fund
Obligations" published in December 2014.


EURASIAN BANK: S&P Lowers Rating on Subordinated Notes to 'B-'
Standard & Poor's Ratings Services corrected its issue ratings on
two series of subordinated notes, due 2020 and 2024, issued by
Kazakhstan-based JSC Eurasian Bank (B+/Positive/B), by lowering
them to 'B-' from 'B+'.  At the same time, S&P corrected by
lowering the Kazakhstan national scale rating on these notes to
'kzBB+' from 'kzBBB'.

Under S&P's initial analysis, it mistakenly assigned its 'B+'
ratings to these subordinated notes on Dec. 9, 2013.  At that
time, S&P should have rated the notes two notches below the
issuer credit ratings on Eurasian Bank, as per S&P's criteria for
rating banks' hybrid capital.  There are no other new analytical
elements underpinning these rating actions.

S&P's issuer credit rating on Eurasian Bank and its other issue
ratings on the bank's debt issuances remain unchanged.

NOMAD LIFE: A.M. Best Affirms 'b+' Issuer Credit Rating
A.M. Best Co. has affirmed the financial strength rating of C++
(Marginal) and the issuer credit rating of "b+" of Nomad Life
Insurance Company JSC.  The outlook for both ratings is stable.

Concurrently, A.M. Best has withdrawn the ratings as the company
has requested to no longer participate in A.M. Best's interactive
rating process.

Nomad Life is a wholly-owned subsidiary of Nomad Insurance Group
Limited, a private non-operating holding company.  Both entities
are domiciled in Kazakhstan.

The ratings of Nomad Life were downgraded in December 2014, due
to A.M. Best's expectation of a significant decline in the
company's risk-adjusted capitalization to a weak level in 2014,
owing to a material increase in reserve provisions associated
with the compulsory workers' compensation account.  This concern
was compounded by Nomad Life's rapid growth in this line of
business since 2012, given the significant uncertainty
surrounding the industry with regard to the adequacy of reserve
provisions for the class.  The final rating action on Nomad Life
continues to reflect these uncertainties, given the company's
dominant market profile in this business segment.


ONEX WIZARD: S&P Assigns Preliminary 'B+' CCR; Outlook Stable
Standard & Poor's Ratings Services assigned its preliminary 'B+'
long-term corporate credit rating to Onex Wizard Acquisition
Company II S.C.A., the Luxembourg-registered financial holding
company for Swiss asceptic beverage carton manufacturer SIG
Combibloc.  The outlook is stable.

At the same time, S&P assigned its 'B+' preliminary issue rating
to SIG Combibloc's proposed senior secured EUR300 million
revolving credit facility (RCF) and its EUR1,965 million-
equivalent senior secured term loan facilities.  The recovery
rating on these facilities is '3'.  S&P also assigned its
preliminary 'B-' issue rating to the proposed EUR700 million-
equivalent senior unsecured notes.  The recovery rating on the
unsecured notes is '6'.

The final ratings will depend on S&P's receipt and satisfactory
review of all final transaction documentation.  Accordingly, the
preliminary ratings should not be construed as evidence of final
ratings.  If Standard & Poor's does not receive final
documentation within a reasonable time frame, or if final
documentation departs from materials reviewed, S&P reserves the
right to withdraw or revise its ratings.  Potential changes
include, but are not limited to, use of loan proceeds, maturity,
size and conditions of the loans, financial and other covenants,
security, and ranking.

The preliminary rating on Onex Wizard Acquisition Company II
reflects S&P's assessment of SIG Combibloc's business risk
profile as "satisfactory" and its financial risk profile as
"highly leveraged."

S&P understands that Onex will finance its acquisition of SIG
Combibloc for approximately EUR3.5 billion by placing EUR1,965
million first-lien loans and EUR700 million unsecured notes.
Most of the balance of just over EUR1 billion will comprise
preference shares, which S&P anticipates will meet its criteria
to be treated as equity.  S&P estimates that the group will
report Standard & Poor's-adjusted debt to EBITDA of about 6.9x at
the close of the transaction, falling to about 6.3x within the
next two years.

"Our assessment of the business risk profile as satisfactory is
based on SIG Combibloc's strong market position as the world's
second-largest aseptic-carton packaging supplier in a capital-
intensive industry with high barriers to entry.  SIG Combibloc
has a proven business model; a differentiated offering compared
with competitors; and embedded operations, long-lasting
relationships, and long-term contracts with a diverse client
base.  As a result, its revenues and earnings are predictable.
The group has a track record of sound profitability and the
nondiscretionary nature of its end-user products -- for example,
milk -- means that the correlation of its profitability with
economic cycles is somewhat limited.  We view its EBITDA margin
as being above-average for the packaging industry," S&P said.

"These strengths are partly offset by SIG Combibloc's relatively
limited product diversity and scope of operations compared with
some of its packaging peers.  This is partly mitigated by SIG
Combibloc's fairly good and still-increasing geographic
diversification.  It is expanding into high-growth regions such
as South America, Asia-Pacific, the Middle East, and Africa.  The
group is a price follower and uses no contractual cost pass-
through mechanisms.  It therefore remains exposed to fluctuations
in the cost of volatile key raw materials such as liquid
paperboard, polymers, and aluminum.  SIG Combibloc's growth
depends on the capital-intensive manufacture and installation of
filler machinery--although this creates some barriers to entry,
it does not create value. A significant proportion of the upfront
costs are recouped by selling carton sleeves," S&P added.

S&P's base case assumes:

   -- Negative revenues in 2014 as a result of weak pricing in
      Europe, improving through organic revenue growth to 2%-4%,
      chiefly based on demand from emerging markets in 2015;

   -- Improving margins as a result of cost reduction measures
      that have largely been implemented.  Standard & Poor's-
      adjusted EBITDA margin will be about 23.5%-24.0% for the
      next two years, up from 22.2% in 2013.

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

   -- Debt to EBITDA of about 6.9x at the close of the
      transaction, which S&P forecasts will trend downward to
      around 6.3x over the next couple of years, primarily based
      on improving earnings, combined with a limited cash sweep;

   -- Sound positive discretionary cash flow generation; and

   -- EBITDA interest cover of about 2.5x.

Based on S&P's review of the draft articles of association
documenting the preference shares, it has not included these
instruments in its calculation of the leverage ratio.  However,
should S&P's review of the executed version of these documents
indicate that they do not satisfy all the requirements listed in
S&P's criteria "The Treatment Of Non-Common Equity Financing In
Nonfinancial Corporate Entities", adjusted leverage would be in
excess of 9x, which would likely result in a lower rating.

The stable outlook reflects S&P's expectation that the group will
continue to benefit from the growth environment in its main
markets in 2015.  S&P expects that SIG Combibloc will be able to
increase its revenues and strengthen its margins over the next 12
months, as operations continue to benefit from cost curtailment.
S&P anticipates that the group's adjusted debt to EBITDA will
average approximately 6.6x over our three-year forecast period,
with EBITDA interest coverage of around 2.5x.

S&P's ratings assume that leverage will gradually fall toward 6x
adjusted debt/EBITDA over the next few years from the very high
levels at the close of the transaction.  Should this not occur,
either through underperformance or management actions, S&P could
lower the ratings.  S&P could also lower the ratings if the group
exhibited an unexpected weakening of liquidity or earnings, so
that interest coverage ratios fell below 2x.  Although S&P sees
it as less likely, it could also lower the ratings if it observes
a significant reduction in the stability or absolute level of
adjusted EBITDA margins to below 17%, which could cause S&P to
revise downward our business risk assessment.  This could occur
after higher-than-expected pressures on sales volumes caused by a
combination of a weak economies, product substitution, and direct

S&P considers an upgrade is unlikely at this stage, because of
SIG Combibloc's high tolerance for aggressive financial policies
and high leverage.  Nevertheless, S&P could raise the ratings by
one notch on improvements in the financial risk profile toward
the "aggressive" category on a sustainable basis.  Such credit
measures could include an improvement in leverage toward 5x, with
funds from operations in the region of 12%, combined with sound
positive free operating cash flow.


HYDRA DUTCH: Moody's Assigns (P)B2 Rating to New EUR160MM Notes
Moody's Investors Service has assigned a (P)B2 rating to the
EUR160 million of new senior secured fixed rate notes due 2019
issued by Hydra Dutch Holdings 2 B.V., the parent holding company
of Eden Springs. Concurrently, Moody's changed to negative from
stable the outlook on the B2 corporate family rating (CFR), B1-PD
probability of default rating (PDR) and the B2 rating on the
existing EUR210 million senior secured Floating Rate Notes (FRNs)
due 2019, and affirmed these ratings.

EUR125 million of the new senior secured fixed rate notes,
together with an additional EUR15.3 million equity injection from
Rh"ne Capital, by way of a new shareholder loan from Hydra Dutch
Holdings 1 B.V. will be used, amongst other uses, to finance the
acquisition of Nestl' Waters Direct (NWD). NWD is part of Nestl'
Waters, the water division of Nestl' S.A. (Aa2, stable). The
remaining EUR35 million of the new EUR160 million senior secured
fixed rate notes will be exchanged with an equivalent amount of
the existing FRNs.

Moody's issues provisional ratings in advance of the final sale
of securities. Upon a conclusive review of the final
documentation, Moody's will endeavor to assign a definitive
rating to the new senior secured fixed rate notes. A definitive
rating may differ from a provisional rating.

Ratings Rationale

The change in rating outlook reflects Moody's expectation that,
immediately following the NWD acquisition, Eden Springs' adjusted
debt/EBITDA ratio will increase to around 5.4x on a pro forma
basis, whereas Moody's had previously expected a reduction in
gross leverage to around 4.6x by the end of 2014. Furthermore,
Moody's believes that the expected synergies may prove
challenging to achieve and be subject to delays given the scale
and geographic spread of NWD's operations. Moreover, the
company's cash flow generation will be constrained in 2015 as a
result of integration costs estimated at around EUR16.7 million
and increased capex spend of EUR30 million compared to EUR22
million previously forecasted. As a result, Eden Springs' CFR
will be more weakly positioned in the B2 rating category.

However, Moody's views the acquisition of NWD as positive for the
company's business profile, positioning it as the clear leader in
the European bottle water cooler segment. Eden Springs will
benefit from a wider geographic spread and increased scale with
the acquisition adding around EUR89 million to the company's top-
line. The acquisition will improve the company's route density,
which is key to driving operational efficiencies and will provide
the company with a larger platform to cross-sell its coffee

After the acquisition, Moody's expects that Eden Springs'
leverage will materially reduce from 2016 onwards, driven by
increasing EBITDA from synergies to be achieved mainly from
higher route density (in particular in Poland) and additional
savings from the consolidation of NWD's headquarters. Moody's
expects synergies from the acquisition to total around EUR10.4
million, with EUR5.2 million achieved in 2015 and the remaining
50% in 2016. Based on management's projections, Moody's expects
that Eden Springs' adjusted leverage will reduce to 5.0x by 2015
and further to 4.3x by fiscal 2016, which would bring it back in
line with management's forecasts from April 2014 when Moody's
assigned the CFR.

Liquidity Profile

Moody's views Eden Springs' liquidity as adequate. Moody's
expects that the company will generate sufficient internal cash
to support current needs, including maintenance capex and costs
associated with the acquisition. At the closing of the
acquisition, Moody's expects that Eden Springs will have access
to around EUR25 million of cash on balance sheet and an undrawn
super senior RCF of EUR45 million due 2019, which is not subject
to any financial maintenance covenants.

Structural Considerations

The issuer of the new senior secured fixed rate notes and the
existing senior secured floating rate notes is Hydra Dutch
Holdings 2 B.V., the top entity within the restricted group and
the reporting entity for the consolidated group. Before the
issuance of the new senior secured fixed rate notes, the existing
floating rate notes were rated at the same level as the CFR, but
weakly positioned given the sizeable super senior revolver. The
issuance of the new senior secured notes will position the B2
instrument ratings more comfortably in that rating category as
the higher amount of senior secured debt will reduce the
proportion of debt that ranks ahead. Pro forma for the
transaction and the NWD acquisition, the issuer and the
guarantors, on an aggregated basis and including all group
entities, generated 53% of pro forma revenue and 83% of pro forma
EBITDA and represented 74% of pro forma total assets. The super
senior revolver benefits from a priority claim in an enforcement

Rationale for Negative Outlook

The negative outlook on the ratings incorporates the weaker than
expected positioning of the company's CFR in the B2 rating
category as a result of deteriorating credit metrics immediately
following the acquisition of NWD. Additionally, the negative
outlook reflects Moody's concerns that the company's credit
quality could deteriorate further as a result of any
underperformance of the existing or acquired businesses, or
unforeseen delays or a reduction in the amount of realised

The change in outlook also reflects the fact that Moody's
original ratings were based on the assumption that the company
would not embark on any large debt-financed acquisitions, prior
to deleveraging the business over a period of 18-24 months.

What Could Change the Rating UP/DOWN

While upward pressure is unlikely in the short term, Moody's
could consider upgrading the rating should Eden Springs'
operating performance improve thereby achieving a sustained
improvement in credit metrics including (1) a reduction in
leverage, as measured by an adjusted debt/EBITDA ratio maintained
below 4.0x; and (2) positive free cash flow and adequate
liquidity demonstrated by retained cash flow/net debt sustained
above 20%.

Moody's would consider stabilizing the outlook should the
integration of the NWD acquisition progress according to plan
with expected synergies being realised on time, while at the same
time achieving the projected financial performance of the
existing operations.

Negative rating pressure could arise owing to an erosion in
margins or adjusted debt/EBITDA increasing towards 5.5x, possibly
as a result of delays achieving the projected levels of
acquisition synergies. In any case, a materially weakening
liquidity profile would create downward rating pressure. Negative
rating pressure could also arise if the company embarks on any
further material debt-financed acquisitions, or engages in
shareholder-friendly initiatives prior to deleveraging the
business over the next 12-18 months.

Principal Methodologies

The principal methodology used in this rating was Business and
Consumer Service Industry 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.

Eden Springs is a provider of water and coffee services across
Europe and in Israel. The company was acquired in October 2013 by
investment funds affiliated with Rhone and by company management.
The company reported PF revenues / EBITDA in 2013 of EUR284
million and EUR54 million.


OLTCHIM SA: Reorganization Plan Will Stipulate Sale
Ecaterina Craciun at Ziarul Financiar reports that Oltchim SA
said in a statement on Jan. 20 the insolvent company's
reorganization plan will stipulate its sale to an eligible buyer.

As reported by the Troubled Company Reporter-Europe on Jan. 9,
2015, Romania Insider related that Oltchim, majority owned by the
state of Romania, will most likely exit insolvency this year.
Oltchim's turnover went up from EUR5.4 million a month in
February 2013, when the company became insolvent, to some EUR16
million a month at end-2014, Romania Insider disclosed.  For the
first time in the last three years, the company posted a gross
profit from exploitation -- EUR580,000 for the months of October
and November 2014, Romania Insider said.

Oltchim SA is a large chemical producer.


BANK ADAM: Bank of Russia Revokes Banking License
News 24/7 reports that from Jan. 20, the Bank of Russia revoked
the banking license of Makhachkala-based Bank Adam international.

According to News 24/7, the bank did not comply with the
requirements of the legislation in the sphere of combating
legalization (laundering) of incomes obtained in a criminal way
and financing of terrorism.

Based on total assets as of December 1, 2014, Bank Adam
International ranked 786 among banks in Russia.

INTERCAPITAL-BANK: Bank of Russia Revokes Banking License
News 24/7 reports that from Jan. 20, the Bank of Russia revoked
the banking license of Saransk-based Intercapital-Bank.

According to News 24/7, the bank did not comply with the
requirements of the legislation in the sphere of combating
legalization (laundering) of incomes obtained in a criminal way
and financing of terrorism.

Based on total assets as of December 1, 2014, Intercapital-Bank
ranked 602 among banks Russia.

KUZBASSRAZREZUGOL OJSC: Moody's Withdraws B3 Corp. Family Rating
Moody's Investors Service has withdrawn Coal Company
KuzbassRazrezUgol, OJSC's corporate family rating (CFR) of B3 and
probability of default rating (PDR) of B3-PD. At the time of
withdrawal, all the aforementioned ratings carried a negative

Moody's has withdrawn the rating for its own business reasons.

RED & BLACK: Fitch Keeps 'BB+' Rating on Class C Notes on RWN
Fitch Ratings has downgraded Red & Black Prime Russia MBS No.1
Limited's class B notes to 'BBB-sf' from 'BBBsf'. All tranches
remain on Rating Watch Negative (RWN).

  Class A (ISIN: XS0294882823): 'A-sf'; remains on RWN

  Class B (ISIN: XS0294883987): downgraded to 'BBB-sf' from
  'BBBsf'; remains on RWN

  Class C (ISIN: XS0294884282): 'BB+sf'; remains on RWN

The transaction is a securitization of Russian mortgage loans
originated by DeltaCredit Bank (BBB/Negative/F3).


The downgrade of the class B notes is driven by the lowering of
Russia's Country Ceiling to 'BBB-' on January 9, 2015. According
to Fitch's criteria, the class B and C notes cannot be rated
above the Country Ceiling due to the absence of explicit
mechanisms sufficiently mitigating transfer and convertibility
risks. The class A notes benefit from a liquidity facility at a
bank outside Russia, which adequately addresses this risk, and
hence can be rated up to four notches above the Country Ceiling.

Although an additional reserve fund, which is held at an offshore
account in a US bank, also provides some protection on the class
B and C notes against transfer and convertibility risks, we have
not given any credit to this feature in our analysis. This is
because the reserve fund can firstly be used to debit the
transaction's principle deficiency ledgers (PDLs). In addition,
the agency has yet to ascertain the impact of recent rouble
depreciation on borrowers and, consequently, the impact of
potential defaults on PDL entries.

All three tranches have been on RWN since December 2014 to
reflect the adverse impact on borrowers' affordability of the
sharp depreciation of the rouble in recent weeks. The transaction
portfolio consists of US dollar-denominated loans, while Fitch
assumes that the borrowers receive their income in Russian

Fitch will monitor the portfolio performance in the next few
months to determine whether an adjustment of its analysis
assumptions is warranted. A significant increase in losses, once
the rouble depreciation filters through, could result in a
downgrade of the notes. Current performance has not yet
deteriorated. Cumulative defaults, defined as delinquent loans
for more than six months, were moderate at 2% of the initial
asset balance as of the last investor report.

The notes' credit enhancement has increased since closing in
2007, enabling them to withstand some performance deterioration.
Additional protection in the form of excess spread is being
eroded by non-variable senior expenses.

Russia's challenge factor is CF3, allowing a rating of up to six
notches above the originator's rating and is currently not a
constraint on the rating.


Ratings are sensitive to changes in Russia's Country Ceiling.

An introduction of transfer and convertibility restrictions in
Russia for a lengthy period of time could adversely affect
payments on the notes.

Further depreciation of the rouble may also have a negative
impact on the transaction's performance.

Deterioration in macroeconomic conditions, together with rising
inflation, could lead to greater portfolio losses. However, we
expect the credit protection for the notes to continue
increasing, so that the notes will be able to absorb some
performance deterioration.


BANK BASIS: Court Declares Liquidation as Illegal
Interfax-Ukraine reports that Ukraine's Higher Administrative
Court on December 24, 2014 dismissed an appeal by the National
Bank of Ukraine regarding the liquidation of Bank Basis

According to Interfax-Ukraine, the panel of court judges upheld a
Kyiv District Administrative Court decision dated August 14,
2014, and the decision of the Kyiv Administrative Court of
Appeals of October 21, 2014 on a suit lodged by the bank's
largest shareholder -- Investor-Fund LLC -- against the National
Bank on the cancellation of the regulator's decision of August
23, 2012 under No. 357 "on revoking the banking license and
appointing a liquidator of Bank Basis," which recognized the
liquidation of the bank as illegal.

The NBU appointed Svitlana Krasylnykova as liquidator of Bank
Basis instead of Oleksiy Uhrimov, from July 16, 2014, Interfax-
Ukraine recounts.

Bank Basis was established in 1991.

FERREXPO FINANCE: Fitch Assigns 'CCC'(EXP)' Rating to Bonds
Fitch Ratings has assigned Ferrexpo Finance Plc's proposed issue
of 10.375% guaranteed amortizing bonds due in 2019 an expected
senior unsecured rating of 'CCC'(EXP)' with a Recovery Rating
'RR4'. The first principal repayment is due in April 2018.

The new bonds will be issued under an exchange offer in respect
of Ferrexpo's existing USD500 million 7.875% notes due in 2016.
The exchange offer is subject to a minimum acceptance level of
60% or USD300 million. Existing bonds tendered before the early
exchange deadline will receive a cash pre-payment equal to 20% of
the nominal amount of the bonds with the remaining 80% exchanged
for new notes. Bonds tendered post the early exchange deadline
will not receive the cash payment element and will convert in
their entirety into new notes.

The bond rating is in line with Ferrexpo's Long-term Issuer
Default Rating (IDR) of 'CCC', which remains constrained by the
Ukrainian sovereign rating (CCC). The proposed bonds will rank
pari passu with existing senior unsecured debt and will benefit
from guarantees from several group companies (together these
companies represented 87% of the group's assets and 95% of
adjusted EBITDA in 9M14). The notes will also include a
limitation on liens, restrictions on dividends (the greater of a
10% dividend yield ratio or USD60 million per annum) and
limitations on additional indebtedness (additional debt/EBITDA
threshold set at 2.5x).

The bonds' final rating is contingent on the receipt of final
documentation conforming to information already received and
further details regarding the amount of the notes.


Ratings Constrained by Sovereign

Ferrexpo's ratings remain constrained by the Ukrainian sovereign
rating due to its operating base within the country. In recent
periods, Ukraine has experienced high domestic inflation, hryvnia
depreciation (by more than 50% in 2014 vs. USD), rising energy
costs, disrupted electricity supply and a delay in VAT repayment
by the State. With respect to the ongoing military conflict
within the country, Ferrexpo's operations and transport
infrastructure have not, at this stage, been directly impacted by
the conflict in the Donbas region, as all assets are located in
the Poltava region, some 425km north of Donetsk.

Low Iron Ore Price Environment
For December 2014, 62% Fe iron ore prices averaged USD69 per
tonne, down 50% yoy, reflecting oversupply in the market and
expectations of slower demand from the Chinese steel industry.
Fitch expects iron ore prices to stabilize at around USD80 per
tonne in the long-term, below the 2014 average price of USD97 per
tonne, which will negatively impact the company's earnings and
credit metrics. As a pellets producer, Ferrexpo will continue to
benefit from a quality premium over the 62% Fe iron ore, which
has widened over the past six months. Ferrexpo has recently
completed its USD2 billion modernization and expansion program
and is planning to produce 12m tonnes of 65% Fe pellets per year
by 2016.

Competitive Cost Producer

Ferrexpo's cost position has moved to the lower second quartile
of the global cost curve. In 2014, cash costs improved
significantly compared with the previous two years, due to rising
volumes from the ramp-up of the Yeristovo mine and the currency
depreciation (50% operating costs are linked to hryvnia). Costs
decreased 22% yoy as of 9M14 and reached USD47 per ton, down from
USD61 in 9M13 and USD60 in FY12. Energy costs represent
approximately 50% of total costs and should contribute to further
cost savings, due to recent falls in global oil prices.

Decreasing but Still Robust Profitability

Fitch expects the company's financial profile to have remained
solid in 2014, with a 33% EBITDA margin (up 1.2 percentage points
yoy). This is despite a significant reduction in revenues (down
15% yoy), which was offset by the currency depreciation. The
ongoing fall in iron ore prices will likely erode EBITDA margin,
which we forecast to decline to 27% in 2016. Funds from
operations (FFO)-adjusted gross leverage will increase to 3.6x-
3.8x in 2014-2015 (due to the reduction in EBITDA) but should
stabilize at around 2.6x-3x thereafter, due to reduced capex and
positive free cash flow (FCF) generation. FFO-adjusted gross
leverage was 2.7x in 2013.

Rebalanced Maturity Profile

At end-9M14 the company's debt profile was mainly composed of
USD500 million 2016 notes offered for exchange, a USD420 million
pre-export finance facility maturing in 2016 and a new USD350
million pre-export finance loan maturing in 2018. Due to
increased iron ore price volatility in 2H14, the company is
planning to proactively manage its debt schedule repayment, by
extending notes maturity and eventually reducing its debt

In Fitch's view, the company's liquidity position is adequate for
the next two years, based on our expectation of FCF turning
positive in 2015 and a solid cash balance. Liquidity may,
however, be put under pressure in 2016 should the bond exchange
fail to materialize and should iron ore prices remain under USD80
per tonne.

Proximity to Consumer Markets

Military unrest in the eastern part of the country has not proven
detrimental to Ferrexpo's export routes. The company still
benefits from a favorable location at its Poltava and Yeristova
mines, with strong access to the Black Sea ports and into central
Europe via rail and waterway links. The company is also well-
located to access Middle Eastern and Asian markets, which are the
current growing export markets.


Rating changes to Ukraine's ratings will result in a
corresponding action in Ferrexpo's ratings.

FERREXPO PLC: Moody's Rates New Unsecured Notes '(P)Caa2'
Moody's Investors Service has assigned a provisional (P)Caa2
rating to the new senior unsecured notes due 2018/2019 ("the New
Notes") which Ferrexpo Finance Plc, a fully owned subsidiary of
Ferrexpo Plc ('Ferrexpo'), is planning to issue as part of the
exchange offer announced by Ferrexpo for its US$500 million
7.875% senior unsecured notes maturing in April 2016 (the
'Existing Notes'). Concurrently, Moody's has affirmed the Caa2
corporate family rating ('CFR') of Ferrexpo, its Caa2-PD
probability of default rating ('PDR'), and the Caa2 rating on the
Existing Notes. The outlook remains negative.

The rating on the New Notes is provisional, as it is based on the
review of draft documentation. Upon completion of the exchange
offer, if it is successful, and conclusive review of the final
documentation, Moody's will assign a definitive rating to the New
Notes. A definitive rating may differ from a provisional rating.

Though Moody's recognizes that the execution of the announced
exchange offer would be credit positive, the agency, as per its
own definitions, may likely view the proposed exchange offer of
Ferrexpo as a distressed exchange on completion of the exchange
offer, which if it were to materialize, would be likely
considered by Moody's as a default.

Ratings Rationale

The affirmation of the CFR and PDR at Caa2 and Caa2-PD
respectively, reflects the agency's fundamental view that
Ferrexpo's ratings remain constrained by Ukraine's foreign
currency ceiling, because the company is exposed to Ukraine's
operating, political, legal, fiscal and regulatory environment,
given that all of its production and mining assets are located
within the country and because the corporate debt is mostly in
foreign currency. The company's capacity to service foreign
currency debt could be negatively affected by the possible future
actions the Ukrainian government may take to preserve the
country's foreign-exchange reserves. Furthermore, the ratings
also factor (1) the company's exposure to a single commodity,
iron ore, whose prices have fallen substantially during 2014 and
are anticipated to remain weak over the coming quarters; (2) the
fact that the company's iron ore resources are concentrated in a
single large deposit in Ukraine, which increases production
outage risk; (3) a still high level of customer concentration
risk, with the two main customers accounting for c.38% of the
group's revenues in the first 9 months of 2014; and (4) its
concentrated ownership structure, with a single individual, Mr.
Zhevago -- who is also the CEO -- retaining a 50.3% ownership
interest in the company.

The liquidity position of the company is also a main concern, due
to the high refinancing risk Ferrexpo is facing over the next 18
months. Although Ferrexpo has a cash balance of US$608 million as
of September 30, 2014 and is projected to start generating
positive free cash flows from 2015 as a result of its plan to
scale down capex compared to the high levels of recent years, it
has US$860 million of debt maturing over the next 18 months. The
bulk of this, chiefly represented by the Existing Notes, will
mature in April 2016. As Ferrexpo has limited access to
international capital markets due to political instability and
geopolitical tensions in Ukraine, has currently no availabilities
under its main long-term committed credit facilities, which are
fully drawn, and has elected to retain a relatively significant
amount of cash (approximately $160m as of September 2014) at Bank
Finance and Credit JSC (Ca, negative), a related party Ukrainian
bank currently exposed to high risk of financial distress,
Moody's estimates that a liquidity gap is possible in the second
quarter of fiscal-year 2016. Given Moody's current assessment of
a weak liquidity position for the company over a 18 months
horizon, and considering the terms of the offer imply a
diminished obligation in respect of an extended maturity not
fully balanced by the expected increase in the coupon, the rating
agency believes that the proposed exchange offer would likely
meet its criteria for a distressed exchange. In accordance with
the Rating Methodology as of March 2009 entitled "Moody's
Approach to Evaluating Distressed Exchanges", a distressed
exchange can be constituted when (1) an obligor offers creditors
a new or restructured debt, or a new package of securities, cash
or assets that amount to a diminished financial obligation
relative to the original obligation and 2) the exchange has the
effect of allowing the obligor to avoid a bankruptcy or payment
default in the future.

Moody's considers that despite being likely considered as a
distressed exchange, the announced exchange offer is positive for
creditors as it reflects a clear management willingness to use
its current substantial cash balances to service its debt, while
at the same time the threshold for dividend distributions will be
more constrained after the exchange offer, based on the terms of
the proposed New Notes.

The negative outlook reflects the fact that a potential further
downgrade of Ukraine's sovereign rating may result in the further
lowering of Ukraine's foreign and/or local currency bond country
ceiling. The outlook also reflects the current negative pressure
on liquidity due to the challenging debt maturity profile of the
company in the next 18 months, with bulk of debt maturing in the
first half of 2016. Moody's however believes that a successful
exchange offer, under the terms contemplated by management, would
mitigate the material refinancing risk in 2016 and therefore
improve the debt maturity and overall liquidity profile of the

Structural Considerations

The provisional rating on the New Notes is in line with the
rating of the Existing Notes, as they are pari-passu. This is
because the New Notes and Existing Notes share the same
structural features, ranking and guarantors. As for the Existing
Notes, also the New Notes will be unsecured guaranteed
obligations issued by Ferrexpo Finance Plc and will benefit from
a suretyship provided by Ferrexpo Poltava Mining (FPM). As at
September 30, 2014, the consolidated net assets and EBITDA of the
guarantors, when aggregated, represented approximately 87% and
95% of the consolidated net assets and EBITDA of the group,
respectively. The main difference between the New and the
Existing Notes, apart from maturity and coupon, is a more
restrictive covenant for dividend payments in the indenture of
the New Notes.

What Could Change the Rating UP/DOWN

Positive pressure, albeit unlikely, could be exerted on the
ratings if Moody's were to raise Ukraine's foreign-currency bond
country ceiling, provided there is no material deterioration in
the company-specific factors, including its operating and
financial performance, market position and liquidity.

Conversely, ratings are likely to be downgraded if there is a
downgrade of Ukraine's sovereign rating and/or lowering of the
foreign-currency bond country ceiling, or in case of a material
deterioration in the liquidity of the company.

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

Ferrexpo Plc, headquartered in Switzerland and incorporated in
the UK, is a mid-sized iron ore pellet producer with mining and
processing assets located in Ukraine. The group has total Joint
Ore Reserves Committee Code (JORC) classified resources of 6.7
billion tonnes, around 1.5 billion tonnes of which are proved and
probable reserves. The average grade of Ferrexpo's ore is
approximately 31% Fe. In 2014 the group achieved a pellet
production of 11 million and, in the first nine months of the
same year, generated revenues of US$1.1 billion.

FERREXPO PLC: S&P Cuts 'CCC+/C' Corp. Credit Rating; Outlook Neg.
Standard & Poor's Ratings Services revised the outlook on
Ukraine-based iron ore pellet producer Ferrexpo PLC to negative
from stable, and affirmed the long- and short-term foreign
currency credit ratings at 'CCC+/C'.  S&P lowered the long- and
short-term local currency corporate credit ratings to 'CCC+/C'
from 'B-/B'.

S&P also affirmed its 'CCC+' issue rating on the $500 million
senior unsecured notes issued by Ferrexpo Finance PLC.  The '3'
recovery rating on these notes is unchanged, indicating S&P's
expectation of meaningful (50%-70%) recovery in the event of a
payment default.

In addition, S&P assigned its 'CCC+' issue rating to the proposed
notes to be issued by Ferrexpo in the coming weeks.  The recovery
rating on this debt instrument is '3', indicating S&P's
expectation of average (50%-70%) recovery prospects in the event
of a payment default.

The rating actions follow a further deterioration in the economic
conditions in Ukraine, which could lead to a sovereign default in
the coming months.  On Dec. 19, 2014, S&P downgraded Ukraine to
'CCC-' from 'CCC'.  S&P continues to rate Ferrexpo one notch
above S&P's transfer and convertibility (T&C) assessment on
Ukraine, which remained unchanged at 'CCC'.  S&P believes that
Ferrexpo could potentially withstand a sovereign foreign currency
default, if one were to occur.  This is because Ferrexpo holds
significant cash balances abroad and has cash available to cover
the maturities in the coming 12 months, as well as profitable
iron ore exports, which have not been significantly affected to
date by the difficult operating conditions in Ukraine.

The lowering of the local currency ratings on Ferrexpo reflects
that these are constrained at the level of the local currency
ratings on Ukraine.

In addition to the growing macroeconomic risks, the outlook
revisions reflects a potential deterioration in Ferrexpo's
liquidity position, which could become stretched if there are
delays in refinancing part of its debt maturities due in the next
18 months.  As of Dec. 31, 2014, the company had US$464 million
in offshore accounts, with maturities of US$240 million in 2015
and US$700 million in 2016, including US$500 million senior
unsecured notes due in April 2016.  S&P believes that if the iron
ore spot price remains low through 2015 and 2016, some of the
liquidity sources S&P has assumed previously won't be available
to serve the debt.

S&P expects Ferrexpo to report positive operating results in the
second half of 2014, despite the drop in iron ore prices (the
current spot price is about US$70 per metric ton [/mt]).  During
this period, Ferrexpo benefited from a devaluation of the
Ukrainian hryvnia (UAH), which resulted in lower unit cash costs
in dollar terms.  In addition, expenses came down thanks to lower
oil prices and freight rates and a further improvement in the
company's product mix.

Under S&P's base-case scenario, it projects that Ferrexpo's
Standard & Poor's-adjusted EBITDA will be US$400 million-US$450
million in 2014 and US$250 million-US$300 million in 2015,
compared with US$266 million in the first half of 2014.  These
assumptions underpin these estimates:

   -- No major operational disruptions, including because of
      problems related to gas, coal, or rail.  However, in
      December 2014, operations were affected by a brief
      electricity shortage -- a possible reoccurrence of this
      shortage will remain a risk through to the end of the

   -- The current iron ore price remaining unchanged through
      2015. In S&P's view, a change of US$10/mt could result in a
      change of US$110 million in EBITDA in 2015;

   -- Iron ore pellets premium of about US$25/mt;

   -- Slight improvement in the shipping volumes and product mix;

   -- Unit cash cost (including transportation and royalties)
      around US$60/mt in 2014 and US$55/mt-US$60/mt in 2015;

   -- No further devaluation of the UAH (in the last quarter of
      2014, the UAH depreciated by 22% to 15.8:1 to dollar).  S&P
      believes that further devaluation to the UAH would improve
      the company's competitive position in the market; and

   -- Capital expenditure (capex) below US$100 million per year,
      with the company's growth projects having been completed.

These assumptions translate into an adjusted debt-to-EBITDA ratio
of 2.5x-3.0x in 2014 and about 4.0x-4.5x in 2015.  In S&P's view,
those credit metrics could be volatile, with iron ore price
swings and macroeconomic uncertainties in Ukraine.

S&P's ratings on Ferrexpo remain constrained by the very high
country risk and T&C risks S&P sees in Ukraine.  Gas imports from
Russia have been suspended several times and current gas
agreement ends in March 2015.  In addition, S&P considers
infrastructure such as the railway to be crucial to Ferrexpo's
ongoing operations; in late December, two explosions under a
cargo train and a railway bridge paralyzed freights in Southern

"We continue to assess Ferrexpo's liquidity as "less than
adequate," based on risks related to the instability in Ukraine.
We estimate that the ratio of sources to uses of liquidity will
be above 1.2x in 2015.  The liquidity assessment takes into
account the sizable cash in offshore accounts.  On the other
hand, the company has limited access to capital markets, with the
current yield on the notes at about 35%.  Moreover, large
maturities are due over the coming two years.  In our view, the
liquidity position may deteriorate to "weak" in the coming
quarters in the absence of some refinancing.  By the same token,
a successful completion of the proposed refinancing should
support the liquidity position," S&P said.

S&P projects these uses liquidity for the 24 months from Dec. 31,

   -- Cash and equivalents of approximately US$464 million,
      excluding US$160 million held in Ukraine, which S&P
      considers to be not immediately available for debt

   -- Funds from operations (FFO) of about US$160 million-US$200
      million in each of the coming years, assuming no business
      disruptions; and

   -- A discretionary option of the company to increase its long-
      term secured pre-export financing (PXF) facility by US$150
      million to US$500 million.

S&P projects these uses of liquidity for the next 24 months as of
Dec. 31, 2014:

   -- Bank debt maturities of US$240 million in 2015 and US$200
      million in 2016, including repayments of the company's
      amortizing PXF facilities, finance leases, and export
      finance agency facilities;

   -- US$500 million senior unsecured notes due April 2016;

   -- Capex of about US$80 million-US$100 million in 2015, which
      will be reduced to a maintenance level of about US$60
      million from the start of 2016; and

   -- Dividends of about US$40 million per year.

The negative outlook on Ferrexpo reflects the possibility of a
downgrade over the coming months if Ukraine's T&C regime tightens
further, which may affect the company's ability to repay its

In addition, S&P may lower the ratings if Ferrexpo's liquidity
position deteriorates.  This could be the case if Ferrexpo cannot
borrow the additional US$150 million under the PXF facility or
refinance part of the coming debt maturities.  A further
weakening of iron ore prices could also put pressure on the

Any outlook revision to stable would largely depend on the
evolution of Ukraine's business environment and T&C regime.  S&P
might consider revising the outlook to stable if it sees some
stabilization in Ukraine's business conditions and if S&P thinks
that the country's T&C regime and banking sector policy will not
impair Ferrexpo's ability to service its debt.

U N I T E D   K I N G D O M

ALPARI UK: In Administration After Rescue Talks Fail
The Guardian reports that West Ham Football Club's sponsor,
foreign exchange broker Alpari UK, has collapsed into
administration after weekend rescue talks failed to deliver a

A team of restructuring experts from KPMG were appointed as
special administrators to the firm, which was scuppered by the
Swiss central bank's decision last week to abandon its attempt to
peg the franc to the euro, according to The Guardian.

In a statement, KPMG said that Alpari and many of its clients had
suffered large losses in volatile foreign exchange markets, the
report notes.  Despite a weekend of discussions with potential
buyers, it had been unable to secure a deal, the report relates.

Alpari UK employs around 170 people at its offices in London's
Square Mile.

"Following the announcement by the Swiss National Bank [last
week], Alpari UK sustained substantial losses as a result of
negative client balances, and was faced with no other choice but
to enter into special administration," the report quoted Richard
Heis, one of the joint special administrators, as saying.  "We
have had a number of inquiries from interested parties in
relation to the company's business. We will be speaking with
these parties and others over the next few days, and hope to
secure a deal to preserve the business and jobs as far as
possible," Mr. Heis added.

The special administration regime was introduced in the wake of
the Lehman Brothers collapse to ensure the failure of an
investment firm results in the minimum of disruption to financial
markets, the report relays.

Alpari UK, which signed a GBP9 million, three-year deal with West
Ham in 2013, said it was insolvent on Jan. 16, after many of its
clients sustained losses that exceeded their account equity, with
the company then forced to foot the bill, the report notes.
Funds held on behalf of clients were kept in separate accounts,
as required by Financial Conduct Authority rules, and KPMG said
US$98.5 million would be returned to customers, the report adds.

CLYDE VALLEY: In Liquidation; Seeks New Investors
Nina Pullman at Fruitnet reports that Clyde Valley Tomatoe has
gone into liquidation.

Clyde Valley Tomatoes (CVT) was established in 2012 with a three-
year funding package of GBP100,000 from herb supplier Scotherbs,
Clydesdale Bank and South Lanarkshire Council, Fruitnet relates.

According to Fruitnet, the deal, formed through a rebranding of
one of the area's previously key tomato growers J&M Craig, was
heralded as being the start of a revolution for the Scottish
tomato industry, but has "not proved financially viable".

"It is with much sadness that as director of Clyde Valley
Tomatoes, I announce the appointment of Annette Menzies of
William Duncan Chartered Accountants as provisional liquidator of
the company," CVT director David Craig, as saying.

Mr. Craig, as cited by Fruitnet, said any creditors will be
contacted in due course, and no new investors are being sought.

Clyde Valley Tomatoes is based in Scotherbs.

CYRENIANS CYMRU: Insolvency No 'Immediate Threat' to Programmes
South Wales Evening Post reports that Swansea-based charity
Cyrenians Cymru has said that there is no 'immediate threat' to
its programmes despite being declared insolvent and a second
staff member under investigation for fraud.

The BBC has also reported that the charity is now speaking to all
the organisations it works with to plan how to keep its work
going, according to the Evening Post.

The report relates that although the charity's funds have been
frozen while a fraud investigation is ongoing, Cyrenians bosses
are said to have been liaising with the Welsh Government to see
if anything can be released.

According to the report, chief executive Conrad Watkins said that
senior staff were doing their best to keep the various anti-
poverty and homeless projects going, while also supporting the
75-odd staff.

"It is an absolute tragedy for the people who depend on our
services, and for the staff involved," the report quote
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."

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

HSS FINANCING: S&P Puts 'B' CCR on CreditWatch Positive
Standard & Poor's Ratings Services said that it placed its 'B'
long-term corporate credit rating on U.K.-based equipment rental
services provider HSS Financing PLC (trading as HSS Hire) on
CreditWatch with positive implications.

At the same time, S&P placed the 'B' issue rating on the group's
GBP200 million senior secured fixed-rate notes on CreditWatch
with positive implications.

The CreditWatch placement reflects S&P's view that HSS Hire's
recently announced IPO could meaningfully improve its credit
ratios.  The group aims to raise about GBP103 million and to
convert its existing shareholder loans and accrued payment-in-
kind (PIK) interest to pure common equity.  S&P currently treats
these instruments as debt under its criteria.  Based on these
assumptions, S&P estimates that the group's Standard & Poor's-
adjusted ratio of debt to EBITDA could improve to about 2.5x from
about 4.5x under S&P's expectations for the fiscal year ending
Dec. 31, 2015, and its adjusted ratio of funds from operations
(FFO) to debt could improve to about 31% from about 16%.

S&P's CreditWatch placement also reflects the potential reduction
in the current financial sponsor's ownership stake, which could
lead S&P to revise upward HSS Hire's financial policy score to
'FS-5' from 'FS-6'.  Combined with the abovementioned improvement
in leverage, if this happened, S&P would revise upward its
assessment of HSS Hire's financial risk profile to "aggressive"
from "highly leveraged."  These factors could result in S&P
raising the ratings on HSS by one notch.

That said, several uncertainties still surround the IPO
transaction, particularly regarding its timing, market
conditions, and the future shareholding structure.  In any case,
a higher financial risk profile assessment would depend on the
strength of the group's commitment to maintain a more
conservative financial policy in the next few years.

S&P does not anticipate revising its assessment of the group's
business risk profile following the IPO.  S&P assess HSS Hire's
business risk profile as "weak," reflecting the group's high
geographical concentration.  It generates almost all its revenues
in the U.K. and more than one-third in London and the southeast
of England.  HSS Hire is the No. 2 equipment rental provider in
the U.K. business-to-business market, which is well-penetrated
and highly competitive.  The players in this market price
aggressively and differentiate themselves on speed and quality of

S&P's base-case operating scenario for HSS Hire does not
currently factor in the IPO, although S&P believes that the
probability of its success is meaningful.

S&P's assumptions for fiscal 2015 include:

   -- Revenues growing to more than GBP320 million.

   -- A gradual improvement in the group's adjusted EBITDA margin
      toward 30%, as management continues to optimize the cost

   -- Adjusted funds from operations (FFO) in excess of GBP50
      million, continuing a trend of robust cash flow generation.
      Capital expenditure (capex) of up to GBP70 million,
      matching anticipated demand, resulting in negative free
      operating cash flow until at least 2016.  S&P notes that
      HSS has the ability to quickly reduce investment capex in
      order to preserve liquidity if demand starts to drop off, a
      factor that is key to S&P's base case and also the
      "adequate" liquidity assessment.

   -- No major acquisitions or divestitures.

This results in these credit measures in 2015:

   -- FFO to debt of about 16%; and

   -- Debt to EBITDA of about 4.5x.

The CreditWatch placement reflects S&P's expectation that a
successful IPO could meaningfully improve HSS Hire's financial
risk profile, leading S&P to raise its ratings on the group by
one notch.

S&P may raise its ratings on HSS Hire if the group successfully
completes its IPO on terms similar to those announced, leading to
a material and sustainable improvement in credit ratios.  The
magnitude of the upgrade would depend on the amounts of equity
raised, the conversion of the shareholder loan, and the group's
commitment to a more conservative financial policy.

S&P could affirm the ratings if it considers that an IPO will not
complete within the next three months.

JACKSONS HOTEL: Goes Into Receivership
Strabane Weekly News reports that Bank of Ireland confirmed that
it has been appointed as receiver to Jacksons Hotel.  The report
relates that the hotel has allayed concerns over the surety of
future bookings.

The hotel said it will continue to trade and staff will remain in
place whil[le] all wedding bookings and other vouchers will be
honored, according to Strabane Weekly News.

In a statement, the hotel's owner, Barry Jackson, said he had
made every effort to continue trading adding that the decision
had been made "with profound regret," the report relays.

"The directors of Jackson's Hotel made sterling efforts to
continue to trade and being fully compliant this outcome is very
disappointing and unexpected.  We would like to thank all of our
suppliers and confirm that the business will continue to trade as
a going concern," the report quoted Mr. Jackson as saying.

"All staff remain in position and we are reassured that all
wedding deposits and vouchers will be honoured.  We would like to
thank especially our loyal and long standing customers for their
support and a special thanks to the local people of Ballybofey,
Stranorlar and beyond.  Our final word of thanks must go to our
excellent hardworking loyal staff, to them we are truly
indebted," Mr. Jackson added.

Jackson's is one of the county's most well-known hotels and
wedding venues and has been a major employer in the Finn Valley
since the mid-1940s.

LB UK: February 6 Submission Deadline Set for Proofs of Debt
Pursuant to Rule 2.95 of the Insolvency Rules 1986, the Joint
Administrators of LB UK Financing Limited intend to make a
distribution (by way of paying an interim dividend) to the
preferential creditors (if any) and to the unsecured,
non-preferential creditors of LBUKF.

Proofs of debt may be lodged at any point up to (and including)
February 6, 2015, the last date for proving claims, however,
creditors are requested to lodge their proofs of debt at the
earliest possible opportunity.

The Joint Administrators intend to make such distribution within
the period of two months from the last date for proving claims.

For further information, contact details, and proof of debt
forms, please visit

Please complete and return a proof of debt form, together with
relevant supporting documents, to PricewaterhouseCoopers LLP, 7
More London Riverside, London SE1 2RT marked for the attention of
Claire Taylor.  Alternatively, you can email a completed proof of
debt form to

Rule 2.95(2)(c) of the Insolvency Rules 1986 requires the Joint
Administrators to state in this notice the value of the
prescribed part of LBUKF's net property which is required to be
made available for the satisfaction of LBUKF's unsecured debts
pursuant to section 176A of the Insolvency Act 1986.  There are
no floating charges over the assets of LBUKF and accordingly,
there shall be no prescribed part.  All of LBUKF's net property
will be available for the satisfaction of LBUKF's unsecured

LONDON & REGIONAL: Fitch Affirms 'Bsf' Rating on Class C Notes
Fitch Ratings has revised the Outlooks on London & Regional Debt
Securitisation No. 2 plc's (LoRDS 2) commercial mortgage-backed
floating-rate notes due 2018 notes, and affirmed their ratings as

  GBP128.7 million class A (XS0262542565): affirmed at 'BBBsf';
  Outlook revised to Stable from Negative

  GBP14.9 million class B (XS0262544348): affirmed at 'BBB-sf';
  Outlook revised to Stable from Negative

  GBP46.4 million class C (XS0262545402): affirmed at 'Bsf';
  Outlook revised to Positive from Stable

LoRDS 2 is a securitization of a single commercial mortgage loan
secured by a portfolio of 18 office, retail and leisure
properties located throughout the UK.

The transaction was restructured in December 2013 at which time
noteholders agreed to a maturity extension of both the loan and
the notes in return for an increase in note margin, the sponsors'
provision of a GBP29 million facility for capital expenditure
(capex) and, among other things, a cash sweep and sequential pay-
down of principal proceeds.


The Outlook revision reflects the deleveraging of the transaction
over the last 12 months with asset sales, cash sweep and an
optional sponsor equity injection reducing total debt by GBP47.7
million and the loan to value (LTV) ratio to 68% from 77%. The
Positive Outlook on the class C notes reflects that full
repayment of the secured loan is increasingly likely.

The terms of the restructure allow the borrower two options to
extend the loan term by one year at October 2014 and October
2015, providing that the senior loan balance is no greater than
GBP190 million and GBP115 million respectively. Although assets
had been sold the sponsor was required to inject equity
(approximately GBP5 million) to meet the GBP190 million threshold
and utilize the first extension option.

The requirement for an equity injection to meet the business plan
target suggests that investor appetite for the asset marketed to
date, which Fitch expects to be mostly the secondary and tertiary
properties of the pool, is still limited and that asset
management initiatives would likely be required to reposition
them. Nevertheless, the overall credit quality of the loan is
still upheld by several high-value assets located in central
London, which we would expect to be able to repay the vast
majority of the rated notes should they be offered to the market.

The equity injection ultimately improves overall loan repayment
prospects by allowing for less reliance on the weaker assets and
increased the interest cover to 2.1x from 1.9x, providing greater
cash sweep. It is also indicates a strong sponsor commitment to
the repayment of the loan, an important sign particularly for a
transaction without an independent servicer driving bond


A material driver of the ratings will be the borrower's ability
to accelerate the sell down of the portfolio and meet the October
2015 repayment hurdle.

Estimated 'Bsf' recoveries are GBP240 million.

MIZZEN MEZZCO: Fitch Says Cinven Acquisition No Rating Impact
Fitch Ratings says the proposed acquisition of Mizzen Mezzco
Limited (MML) (B+/Stable) by European private equity firm Cinven
Partners LLP (Cinven) is not expected to result in a near-term
change in the ratings on MML and on the GBP200 million senior
notes (B-/RR6) issued by Mizzen Bondco Limited, a wholly owned
subsidiary of MML.

Fitch does not expect the business strategy and the current
management of MML's wholly-owned subsidiary, Premium Credit
Finance (PCL), to alter significantly as a result of the change
in ownership, and expects that the current funding structure will
remain unchanged.

MML is highly dependent on dividends being upstreamed from PCL,
its main operating entity, to meet its debt servicing
obligations. Any deterioration of PCL's credit risk profile would
most likely be the result of an increase in leverage, a weakening
of its funding profile or a deterioration of asset quality, which
would in turn impact the ability of PCL to upstream dividends to
MML to meet its obligations. Fitch will continue to monitor any
new strategic direction or alteration in risk appetite that may
lead to a change in PCL's credit risk profile or in the financial
structure backing the senior notes.

Cinven announced on January 13, 2015, that it agreed to acquire
MML (through the acquisition of its holding company, Mizzen Topco
S.C.A.) for an enterprise value of GBP462 million from private
equity firm GTCR LLC. MML is the ultimate holding company that
wholly owns PCL, a leading provider of third-party insurance
premium in the UK and Ireland. The transaction is expected to
close in 1Q15.

VEDANTA RESOURCES: Moody's Affirms 'Ba1' CFR; Outlook Negative
Moody's Investors Service has changed Vedanta Resources plc's
outlook to negative from stable and affirmed its corporate family
rating at Ba1 and its senior unsecured ratings at Ba3.

Ratings Rationale

The rating action reflects the sharp drop in crude oil prices and
the resulting impact sustained lower prices will have on
Vedanta's credit profile. While Vedanta may able to increase
production in its traditional metals operations, such as zinc and
aluminium, the sharp drop in the price of oil, which previously
accounted for over half of the group's operating EBITDA, will
result in weaker credit metrics.

Moody's expects the Brent crude oil price to average about
US$86/barrel in the year to March 31, 2015 (FY 2015), followed by
US$57.5/bbl in FY2016 and US$66.8/bbl in FY2017 (Moody's price
deck for Brent oil is US$55/bbl for calendar 2015 and $65/bbl in
2016). Moody's expectations for base metal prices and iron ore
have not changed in recent months and while they are lower than
the current LME prices for zinc and aluminium, they are higher
than the current price of copper.

Based on a working interest of 138,000 barrels of oil equivalent
per day (boepd) Moody's expects Cairn India Ltd. (unrated) to
generate around US$1.0 billion of EBITDA in FY2016 compared with
the US$2.347 billion of EBITDA reported in FY 2014 on a working
interest of 137.1k boepd and an average Brent price of

Moody's anticipates some increase in production of zinc and
aluminium in India where existing assets are being developed
while cheaper fuel should lead to lower mining costs across the
group. Its copper mining interests remain a challenge and Moody's
regards any increase in Indian iron ore production as a bonus.

"Despite the best efforts of management, the drop in EBITDA of
over US$1.3 billion from Cairn cannot be easily offset and so
from an EBITDA level of US$5.2 billion seen in FY 2014, Moody's
expect EBITDA of around US$4.0 billion to US$4.2 billion in
FY2016," says Alan Greene, a Moody's Vice President, Senior
Credit Officer.

The resulting fall in cash flow will lead to a reduction in free
cash flow but Moody's expects the company to take steps to reduce
expansionary capital expenditure. However, in order to mitigate
the lost contribution from oil, the company will need to spend
varying amounts on capital expenditure to achieve more output
from its iron ore mining, its aluminium operations and the zinc
business in India. Nevertheless, future exploration and
production capex at Cairn together with spending on the Gamsberg
zinc development, could be reined in and total capex is likely to
be below the $2.2 billion spent in FY2014.

"As a result Moody's expect Vedanta's gross leverage, or
debt/EBITDA, to end FY 2016 at 4.3x compared with around 3.9x for
FY2015, with the peak level probably occurring at the interim
FY2016 stage", says Mr. Greene, who is Lead Analyst for Vedanta.

During the remaining 10 weeks of FY2015, several developments are
expected that could add to the pressure on Vedanta's balance
sheet in the short-term. Vedanta is likely to be bidding in
India's coal mine auctions to replace its previously de-allocated
coal block. Moody's also expects the long drawn out negotiations
and rulings on the sale of the Government of India's interests in
Hindustan Zinc Ltd. (HZL, unrated) and BALCO to reach a

Of these potential investments, GoI's 29.5% stake in HZL, worth
around US$3.4 billion, is the largest, and in current market
conditions might be difficult to finance at an acceptable cost.
Vedanta's US$8 billion of mutual fund and liquid investments
cannot be readily used for the transaction. Interest rates in
India recently moved lower and this will help Sesa Sterlite Ltd.
(unrated) with its working capital and other fund raising
although the returns on Vedanta's liquid investments, chiefly
held at Cairn India and HZL, are likely to reduce. If the
purchase of HZL did not occur, then a large proportion of funds
in HZL could be released as a dividend for upstreaming via Sesa
Sterlite Ltd (unrated) to the parent level companies.

Vedanta has US$1.4 billion of term debt maturing in FY 2016, one
of the lowest amounts in recent years. In addition, there will be
short-term debt supporting the group's working capital needs to
be rolled over during the year. Therefore, in spite of the
increase in Vedanta's bond yields and the fall in its equity
market capitalization to US$1.6 billion, Moody's views the
refinancing risk as modest compared to recent years. In addition,
Vedanta has plenty of headroom with respect to the main financial
covenant behind Vedanta's parent company borrowings of net
debt/EBITDA below 2.75x.

The outlook is negative reflecting the pressure on leverage
arising from weak commodity prices and while measures to conserve
cash may well be undertaken and aluminium and zinc output
increase, the rate of decline in EBITDA is likely to outpace
reductions in debt. Furthermore, the rating would be stressed to
accommodate a straight purchase of HZL and BALCO but due
consideration would be given to the final structure of any such

The outlook could be stabilized if commodity prices recover or on
the back of successful volume increases in the Indian zinc,
aluminium and iron ore businesses and if the company is
successful in preserving cash flow during the downturn by cutting

The ratings could come under downwards pressure if (1) earnings
from its oil and base metal businesses weaken as a result of
depressed commodity prices or material obstructions to
production; (2) the acquisition (if undertaken) of the Government
of India's stake in HZL fails to result in timely direct access
to HZL's liquid assets; and (3) Vedanta undertakes further
acquisitions, investments or shareholder remuneration policies
that include incremental debt that is not readily self-

Moody's could downgrade Vedanta's ratings if the following credit
metrics are reached on a sustained basis; 1) Adjusted debt/EBITDA
is above 3.5-4.0x, 2) Its (CFO-DIV) / debt ratio falls below 15%;
3) EBIT/interest declines below 3.5x; or 4) if Vedanta
consistently generates negative free cash flow.

The principal methodology used in this rating was the Global
Mining Industry published in August 2014.

Headquartered in London, UK, Vedanta Resources plc is a
diversified resources company with interests mainly in India. Its
main operations are held by Sesa Sterlite Limited ("SSL"), a
62.9%-owned subsidiary which produces zinc, lead, silver,
aluminium, iron ore and power. In December 2011, Vedanta acquired
control, of Cairn India Limited ("CIL"), an independent oil
exploration and production company in India, which is now a
59.9%-owned subsidiary of SSL. Listed on the London Stock
Exchange, Vedanta is 69.9% owned by Volcan Investments Ltd. For
the year ended March 2014, Vedanta reported revenues of US$14.6
billion and EBITDA of US$4.5 billion.

WAGAMAMA LTD: S&P Assigns Preliminary 'B-' CCR; Outlook Stable
Standard & Poor's Ratings Services assigned its preliminary 'B-'
long-term corporate credit rating to Mabel Topco Ltd., the parent
company of U.K.-based casual dining restaurant operator Wagamama
Ltd.  The outlook is stable.

At the same time, S&P assigned its preliminary 'B-' issue rating
to the group's proposed GBP150 million senior secured notes.  The
preliminary recovery rating on these notes is '4', indicating
S&P's expectation of average (30%-50%) recovery prospects in the
event of a payment default.

S&P also assigned a preliminary 'B+' long-term issue rating to
the group's proposed GBP15 million super senior RCF.  The
preliminary recovery rating on the RCF is '1', indicating S&P's
expectation of very high (90%-100%) recovery prospects in the
event of a payment default.

The preliminary ratings are subject to the successful issuance of
the notes and S&P's review of the final documentation.  If
Standard & Poor's does not receive the final documentation within
a reasonable timeframe, or if the final documentation departs
from the materials S&P has already reviewed, it reserves the
right to withdraw or revise its ratings.

The preliminary 'B-' rating on Mabel Topco reflects S&P's
assessment of Wagamama's business risk profile as "weak" and its
financial risk profile as "highly leveraged" as S&P's criteria
define these terms.

Wagamama is a midsize casual dining restaurant chain in the
highly competitive and cyclical U.K. restaurant sector.  It is
exposed to consumers' discretionary spending trends and to
volatile commodity prices.  The restaurant chain also has limited
diversification outside its home country through its franchise
business model. These weaknesses are alleviated by Wagamama's
well-known brand and its differentiated position and market
leadership as the only pan-Asian restaurant operator of scale in
the U.K. restaurant market; it has a portfolio of over 100 well-
located sites in the U.K.  In addition, Wagamama has demonstrated
a steady track record of new restaurant openings and positive
like-for-like growth for the past five financial years.

Wagamama's profitability is constrained by relatively high
operating costs, particularly for labor and ingredients, due to
its specialized pan-Asian cuisine.  Mitigating this are the
restaurant chain's relatively few promotional offers and its
positioning as a leading pan-Asian restaurant chain in the U.K.,
which provides some degree of differentiation in food and brand

After refinancing, Wagamama will continue to have a highly
leveraged capital structure that consists of senior secured
notes, operating lease adjustments, and shareholder loans, which
S&P views as debt-like under its criteria.

The capital structure before the transaction includes about GBP86
million of bank loans, about GBP56 million of mezzanine debt, and
about GBP149 million of shareholder loans (GBP19 million was
written off in December 2014).  The proposed transaction will
replace all outstanding bank loans and mezzanine debt with GBP150
million senior secured notes and a GBP15 million super senior
RCF. S&P understands that the mezzanine debt will be fully repaid
to the private equity firm Hutton Collins, the holder of the
mezzanine debt and Wagamama's joint owner (alongside Duke Street

After the transaction, the remaining shareholder loans, in the
form of unsecured loan notes of GBP149 million, will accrue
interest at 10% a year until they mature in 2019.  After
adjusting for capitalized operating leases of GBP136 million, S&P
forecasts that Standard & Poor's-adjusted debt will be around
GBP440 million at the end of the financial year (FY) ending in
April 2015.

After the proposed refinancing, S&P calculates that Wagamama's
Standard & Poor's-adjusted debt to EBITDA would reach just below
10.0x (or 6.4x excluding shareholder loans) for FY2015.  Due to
the substantial expansion capital expenditure (capex) and
interest accrual under the shareholder loans, S&P forecasts that
leverage metrics will broadly remain at these levels over FY2016.
In S&P's view, Wagamama will have only modest potential to reduce
leverage and the pace of any deleverage will depend on management
successfully implementing its growth strategy to secure profit

Given the non-cash nature of the interest on the shareholder
loans, S&P considers that its lease-adjusted leverage ratios are
best complemented by other ratios, such as the ratio of
unadjusted EBITDAR (EBITDA including rent costs) to cash interest
plus rent coverage ratio.  S&P forecasts this EBITDAR coverage
ratio will be 1.6x in FY2016, a level commensurate with its
assessment of Wagamama's financial risk profile as "highly

According to Standard & Poor's criteria, a combination of a
"weak" business risk profile and a "highly leveraged" financial
risk profile leads to an anchor of 'b' or 'b-'.  S&P has selected
the lower 'b-' anchor due to the company's relatively weak
financial risk profile; its credit metrics are at the lower end
of the "highly leveraged" category.

S&P's base case assumes:

   -- The U.K. economy's growth of about 3% will 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.  Modest growth
      in U.K. real consumer spending.

   -- Healthy topline revenue growth of about 14%-15% for FY2015
      and FY2016, mostly based on new restaurant openings and
      maturing new sites, accompanied by modest like-for-like

   -- Adjusted EBITDA margin of about 23% for FY2015, marginally
      declining in 2016 because S&P expects labor costs in the
      U.K. to rise.

   -- Capex at 10%-11% of revenues, most of which will be used to
      fund new restaurant expansion.

   -- Increasing operating lease obligations in line with new

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

   -- Adjusted debt to EBITDA reaching just below 10.0x (around
      6.3x, excluding the shareholder loan) in FY2015 and FY2016,
      modestly improving thereafter.

   -- S&P's core and most of the supplementary credit ratios will
      likely remain in the "highly leveraged" financial risk
      profile category over the medium term.

   -- EBITDAR coverage ratio of about 1.6x for FY2016, remaining
      at a similar level thereafter.

The stable outlook reflects S&P's view that Wagamama will be able
to grow revenues and increase its profits through new store
openings and also maintain adequate liquidity as it funds its
expansion plan.  S&P incorporates its expectation that Wagamama
will maintain a prudent financial policy and that management will
implement its expansion plan, which has a certain degree of
execution risk, carefully.

S&P expects that adjusted debt to EBITDA will remain broadly
stable at just below 10x (around 6.3x, excluding the shareholder
loans) and that EBITDAR coverage will remain above 1.5x.

S&P could lower the ratings if Wagamama is unable to successfully
execute its growth-oriented business plan or grow its revenues
and profitability, causing a deterioration of credit ratios and
liquidity.  This could result from factors such as a slowdown in
the U.K.'s economy, an inability to pass on commodity or labor
cost inflation to customers, any supply chain disruption, or a
food safety scare.

S&P could also lower the ratings if the financial sponsor owners
materially increase leverage, if liquidity deteriorates based on
negative free cash flows, or if the EBITDAR coverage drops below
1x.  This scenario could occur if management undertakes excessive
capex or shareholder returns, resulting in its financial
commitments becoming unsustainable.

S&P does not envisage an upgrade in the near term.  S&P could
raise the ratings however, if Wagamama's EBITDAR coverage ratio
were to significantly strengthen to above 2.2x on the back of
strong profit growth and management adopting a prudent financial
policy with respect to shareholder returns.


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  Go to order any title today.


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

Troubled Company Reporter-Europe is a daily newsletter co-
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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,

Copyright 2015.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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