TCREUR_Public/150213.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Friday, February 13, 2015, Vol. 16, No. 32



AZERBAIJAN RAILWAYS: S&P Affirms 'BB+' CCR; Outlook Negative


RENA GMBH: Capvis to Acquire Operating Assets
STABILITY CMBS 2007-1: Fitch Raises Rating on Cl. E Notes to CCC


GREECE: Fails to Reach Bailout Deal with Eurozone Officials
TITLOS PLC: Moody's Reviews Caa1 Rating on A Notes for Downgrade


ORKUVEITA REYKJAVIKUR: Fitch Publishes 'BB-' Long-Term IDR


SMURFIT KAPPA: S&P Rates EUR250MM Sr. Unsecured Notes 'BB+'
ST PAUL'S IV: Fitch Affirms 'B-sf' Rating on Class E Notes


MONTE DEI PASCHI: Increases Size of Planned Fundraising to EUR3BB


KEMERI SANATORIUM: Sells Property For EUR2.86 Million


STABILUS SA: Fitch Raises Issuer Default Rating to 'B+'


PROSENSA HOLDING: Discloses Advance Liquidation Distribution


LYNGEN MIDCO: Moody's Assigns '(P)B1' Corporate Family Rating
LYNGEN MIDCO: S&P Assigns Preliminary 'B+' CCR; Outlook Stable


JASTRZEBSKA SPOLKA: Miners' Strike May Prompt Collapse
* POLAND: Number of Bankruptcies Down 3.3% in January 2015


SAGRES DOURO: S&P Raises Rating on Class C Notes to 'BB(sf)'


TAVRICHESKY BANK: Placed Into Temporary Administration


BANCO BILBAO: Moody's Rates Tier 1 Securities 'Ba2(hyb)'


BANK FORUM: Fund Asks Court to Explain Liquidation Revocation
FERREXPO PLC: Fitch Affirms 'CCC' Long-Term Issuer Default Rating
NAFTOGAZ NJSC: Fitch Affirms 'CCC' Issuer Default Rating

U N I T E D   K I N G D O M

BANK: Makes First 20 Store Closures
CHANTRY KITCHENS: Goes Into Administration
MARUSSIA F1: Justin King Linked to Buy-Out
MEIF RENEWABLE: Moody's Assigns Ba2 Corporate Family Rating


* AlixPartners Announces Managing Director Promotions
* BOOK REVIEW: The Sorcerer's Apprentice - Medical Miracles



AZERBAIJAN RAILWAYS: S&P Affirms 'BB+' CCR; Outlook Negative
Standard & Poor's Ratings Services revised its outlook on
Azerbaijan Railways CJSC (ADY) to negative from stable.  At the
same time, S&P affirmed its 'BB+' long-term corporate credit
ratings on ADY.

The rating action mirrors that on the sovereign rating.  In
accordance with S&P's criteria for rating government-related
entities (GREs), if S&P was to lower the sovereign rating on
Azerbaijan (BBB-/Negative/A-3) by one notch, it would likely lead
to a similar rating action on ADY.

S&P's rating on ADY reflects S&P's expectation of a "very high"
likelihood that Azerbaijan would provide timely and sufficient
extraordinary support to the company in the event of financial
distress, according to S&P's GRE criteria, and its assessment of
ADY's stand-alone credit profile (SACP) as 'bb'.

S&P bases its view of a "very high" likelihood of extraordinary
government support on S&P's assessment of ADY's:

   -- "Very important" role for the Azerbaijani government, in
      light of ADY's monopoly position as the owner and manager
      of the national rail infrastructure and rolling stock.  In
      S&P's view, ADY plays a key role in implementing
      Azerbaijan's infrastructure development plan, which S&P
      understands is one of the government's priorities.

   -- "Very strong" link with the government of Azerbaijan, given
      the state's 100% ownership of ADY; the government's role in
      appointing the company's senior management and its
      involvement in strategic decision taking; and

   -- S&P's understanding that ADY will not be privatized in the
      medium term.

S&P's assessment of the company's SACP at 'bb' is based on its
view of ADY's business risk profile as "weak" and its financial
risk profile as "minimal."  S&P also views ADY's transparency and
information discolosure as somewhat weaker compared with its
peers, and S&P considers that ADY's cash flow ratios are on a
downward trend.  Because these risks are not captured in other
parts of S&P's analysis, it applies a negative comparable rating
analysis modifier to ADY.

The negative outlook on ADY reflects that on the Azerbaijan, its
sole shareholder.

In accordance with S&P's criteria for rating GREs, it would
likely lower the rating on ADY if S&P was to lower the sovereign
rating on Azerbaijan.

Further rating pressure might arise if the company's 'bb' SACP
deteriorates significantly and S&P revises it to 'b+' or lower.
This could occur if the company's funding policy changes, such
that ADY funds its significant capex program using external funds
rather than receiving government financial aid, leading in turn
to an increase in Standard & Poor's adjusted debt to EBITDA to
more than 4x.  S&P could also take a negative rating action if
ongoing liquidity support from the Azerbaijani government is not
as timely as S&P currently anticipates, or if it reassess the
likelihood of government support to ADY to "moderately high" or

S&P might revise the outlook on ADY to stable if S&P revises the
outlook on the sovereign rating to stable.


RENA GMBH: Capvis to Acquire Operating Assets
SeeNews reports that Swiss buyout firm Capvis will take over
insolvent German engineering business Rena GmbH.

According to the report, Rena said that the private equity firm
will acquire all of its operating assets, including its current
order book.  The transaction, the value of which was not given,
will involve the transfer of all of Rena's employees, the report

SeeNews relates that Rena noted that one of the alternatives for
the company was to accept an insolvency plan by a group of bond-
creditors. However, that offer could not prevail, it added.

Completion is expected in the next few weeks, subject to meeting
certain conditions including securing regulatory clearance, notes

As reported in the Troubled Company Reporter-Europe on March 28,
2014, PV-Tech said RENA has started insolvency proceedings under
self-administration as it attempts to restructure after failing
to gain a financing solution for debts encountered at a
subsidiary, SH+E. The company said the insolvency proceedings
only related to German operations of RENA GmbH, while other
domestic and foreign subsidiaries of the RENA Group would
continue operating as normal, PV-Tech relates.

RENA is a wet chemicals equipment processing specialist.

STABILITY CMBS 2007-1: Fitch Raises Rating on Cl. E Notes to CCC
Fitch Ratings has upgraded STABILITY CMBS 2007-1 GmbH's
(STABILITY) class D and E commercial mortgage-backed floating-
rate notes and affirmed the class C notes as:

  EUR20.2 million Class C (DE000A0N3021) affirmed at 'BBsf';
  Outlook Stable

  EUR30.4 million Class D (DE000A0N3039) upgraded to 'BBsf',
  Outlook Stable from 'CCCsf; Recovery Estimate RE90%

  EUR28.2 million Class E (DE000A0N3047) upgraded to 'CCCsf' from
  'CCsf'; Recovery Estimate RE90%

  EUR10.0 million Class F (DE000A0N3054) Not rated

STABILITY is a synthetic securitization of commercial mortgage
loans originated by IKB Deutsche Industriebank AG, with the notes
collateralized by debt instruments issued by Kreditanstalt fur
Wiederaufbau (AAA/Stable/F1+).


The upgrade of the class D and E notes is driven by increased
credit enhancement resulting from strong (p) repayments over the
past 12 months combined with the resolution of two credit events
since the last review in March 2014.   One of these credit events
was resolved after the end of the last collection period and the
funds will be distributed to repay the class C notes in full on
the next interest payment date.  Due to the synthetic transaction
structure, the class C notes are not linked to the rating of the
counterparty, but have been affirmed.

The amortization of EUR168 million since the last performance
review in March 2014, has reduced the aggregate pool balance to
EUR88.7 million in January 2014 (EUR909.2 million at closing).
An increase in credit enhancement, resulting from fully
sequential principal paydown, provides senior investors with
further protection against loan credit events (which rose to 38%
of the outstanding portfolio in January 2014 (excluding the
credit event resolved after the cut off date mentioned above)
from 13% in March 2014) and delinquencies in the portfolio.

Although a further EUR10 million of the threshold amount (class
F) is outstanding (EUR14.6 million at closing), Fitch estimates
this may not be sufficient to cover for all future losses from
the still outstanding loans.  Over the past year, the expected
loss has reduced due to (p)repayments and is reflected in the
upgrade of the class E notes to 'CCCsf'.


Should the credit events in the portfolio increase or the
recoveries fall short of Fitch's expectations, a revision of the
Recovery Estimate for the class E notes as well as a revision of
the Outlook on the class D notes may become necessary.


GREECE: Fails to Reach Bailout Deal with Eurozone Officials
Peter Spiegel and Anne-Sylvaine Chassany at The Financial Times
report that eurozone finance ministers' first attempt to grapple
with the bailout demands made by the new Greek government broke
down in recriminations after the two sides failed even to agree a
way to take negotiations forward after six hours of talks in

Jeroen Dijsselbloem, the Dutch finance minister who chairs the
committee of his 18 colleagues, said that while he had hoped a
blueprint for future talks could have been agreed at the session,
no negotiations were scheduled ahead of a self-imposed deadline
to reach agreement on a bailout extension by Monday, Feb. 16, the
FT relates.

"We simply tried to work on [the] next steps over [the] next
couple of days; unfortunately we were unable to do that," the FT
quotes Mr. Dijsselbloem as saying.  "Will people be starting work
in Athens or elsewhere? Not between now and Monday, because we
need to have common ground on the process forward."

Although no final deal on Greece's proposals was in the offing at
the Feb. 11 meeting, senior eurozone officials had hoped that,
following days of public sniping over what a new bailout program
might look like, Athens and its creditors could at least find a
road map to resolving the stand-off.

TITLOS PLC: Moody's Reviews Caa1 Rating on A Notes for Downgrade
Moody's Investors Service has placed on review for downgrade the
rating of the notes issued by Titlos plc, an asset-backed
transaction exposed to the credit of the government of Greece:

   EUR5100 Million A Notes, Caa1 (sf) Placed Under Review for
   Possible Downgrade; previously on Aug 18, 2014 Upgraded to
   Caa1 (sf)

Ratings Rationale

The rating actions followed Moody's placement on review for
downgrade of the Caa1 rating of Greek government bonds on 6
February 2015. Moody's will conclude its rating review upon
concluding the Greek sovereign rating review.

The transaction is the securitization of a swap agreement (the
Hellenic Swap) that relies on payments by the Greek government.
In rating this credit, Moody's considers a full linkage to the
rating of Greece, and any other risk related to the specific
transaction structure.


The principal methodology used in this rating was "Moody's
Approach to Rating Repackaged Securities", published in December

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

Factors or circumstances that could lead to an upgrade of the
rating include the upgrade of the rating of Greece's government

Factors or circumstances that could lead to a downgrade of the
rating include the downgrade of the rating of Greece's government


ORKUVEITA REYKJAVIKUR: Fitch Publishes 'BB-' Long-Term IDR
Fitch Ratings has published Orkuveita Reykjavikur's (Reykjavik
Energy; RE) Long-term Issuer Default Rating (IDR) of 'BB-'.  The
Outlook is Stable.

RE's rating reflects the regulated nature of the company with 65%
of 2014 EBITDA coming from its regulated electricity, hot water,
cold water and sewage networks.  The remaining 35% of 2014 EBITDA
was from electricity generation (predominantly geo-thermal) and
its fibre-optic network.

The rating is constrained by its concentrated Icelandic
operations, large exposure to currency risk and aluminium price
risk, and expected funds from operations (FFO) net adjusted
leverage of 7.4x to FYE16.  These constraints are offset by the
high contribution of regulated earnings, the ability to set an
all-in-cost tariff in a benign regulatory environment and a
strong FFO interest cover of 4.5x to FYE16.

The Stable Outlook reflects the company's outperformance against
its existing five-year business plan (2011-2016), which we expect
to be delivered on.  The plan has focused on strengthening the
company's financial position through the provision of
subordinated shareholder loans, asset sales, tariff increases
linked to the Consumer Price Index (CPI) or Building Cost Index
(BCI) and a cost-efficiency program.  As a result, FFO net
adjusted leverage improved to 7.4x at YE13 from 10.8x at YE11.

Fitch's view of the moderate to strong link between the company
and its three municipality parents supports a one-notch uplift
included in the IDR.

RE is a regional publicly-owned utility operating in Iceland
(BBB/Positive).  The company operates in 20 communities, which
cover 67% of the Icelandic population and has three municipality
shareholders: the City of Reykjavik (93.5%), the Municipality of
Akranes (5.5%) and the Municipality of Borgarbyggd (1.0%).


Majority Regulated, Benign Regulation

RE earns 65% of its EBITDA from regulated networks and has the
ability to regularly propose index-linked tariff increases (CPI
or BCI linked) in order to cover all efficiently incurred costs
and provide a return on investment of at least 5%, up to 2016.
Tariffs are monitored and approved by government bodies, rather
than a fully independent regulator.

Fitch views the regulatory environment for the different
regulated businesses as less robust and transparent compared with
other European countries.  However, it can be considered
relatively benign, with some predictability given the company's
ability to propose tariffs linked to inflation, and an
efficiently incurred full cost-pass-through tariff mechanism
including a return on investment.

Generation with Market Risks Exposure

Around half of the 30% of earnings in the electricity generation
segment are from retail operations, with the other half coming
from long-term contracted generation to aluminium producers.  The
latter contains take or pay contracts which are linked to the
price of aluminium and therefore if the price of aluminium is
low, revenues would decrease although costs would remain the
same.  This introduces price risk, which is only partially offset
in the short to medium term by RE's active hedging on the price
of aluminium.

High Leverage

FFO net adjusted leverage is forecast to average 7.4x from 2014
to 2016, with a spike to around 8.3x at YE14.  The maturity of
the aluminium linked bond asset in 2016, an increasing price of
aluminium on the forward markets, increases in tariffs, continued
dividend freeze and capex restraints are the main drivers of the
expected deleveraging to 2016.  The company's ability to continue
deleveraging beyond 2016 will be dependent on measures agreed by
shareholders following the completion of the 2011- 2016 business

Strong Coverage, Significant FX Risk

Interest coverage is strong thanks to RE's access to well-priced
funding across a basket of currencies.  However, this has exposed
the company to significant FX risk, which is managed through RE's
US dollar-denominated power generation earnings and hedged over a
five-year horizon.  Fitch notes that the company has
significantly reduced balance sheet exposure to FX fluctuations
by denominating the generation subsidiary in US dollars, but the
cash flow exposure remains a rating risk.  Fitch expects that the
FX volatility may remain muted by the continuing capital controls
in Iceland.

At Sept. 30, 2014, the company's total debt amounted to ISK187.9
billion (USD1.55 billion) of which 76% was denominated in foreign
currencies (ISK194.9 billion; 78% at FY13), whilst variable rate
debt stood at 76.5% and interest rate hedges covered around 82%
of the loans one year ahead (77.6% at FY13 and interest rate
hedges covering 94% of loans for one year ahead).

Standalone Credit Profile and Moderate-to-Strong Parent Linkage
RE's rating is based on our view of its standalone credit
profile, which we assess as weaker than its majority shareholder,
the City of Reykjavik.  Fitch's moderate to strong linkage
assessment reflects conditional parent guarantees of over 75% of
outstanding debt (expected to decrease in future) and
subordinated shareholder loans from its municipality shareholders
representing a further 7% of outstanding debt.  There is also
strong operational control from RE's shareholders and high
strategic importance as Reykjavik's foremost public utility.

Risk of Political Interference

There is scope for political interference due to RE's board being
elected by the Reykjavik and Akranes City Councils, and due to
tariffs and investment plans being subject to influence from
government bodies rather than an independent regulator.  Although
the risk is currently benign, it may increase after 2016 when
approvals by the shareholders lapse and which include no dividend
payments, costs and investment reductions, a 5%-7% minimum
allowed return on investment, and inflation linking of tariffs.
In addition, capital repayments are due to start on shareholder
loans after 2016.

Iceland benefits from some of the lowest water and electricity
tariffs in Europe due to the purity of water, as well as low
electricity prices due to the abundance and low running costs of
hydro and geothermal power sources.  Therefore, it does not face
the same energy affordability issues that other European
countries face, which could make parental support and
continuation of fully cost reflective tariffs after 2016 a more
tenable proposition.

Strong Progress Against Five-year Business Plan

The company has over-performed against its targets set under the
2011-2016 business plan, which was agreed in March 2011 between
the company and its shareholders as an effort to improve the
company's cash balance by ISK50bn until the end of 2016, as well
as helping with large debt maturities from 2013 onwards.  Fitch
forecasts RE will continue to de-leverage by end-2016 and beyond.
However, we note that this will also depend on market movements
on the aluminium price and currency exchange that are outside the
company's control.


Fitch's key assumptions within our rating case for the issuer

   -- Wholesale electricity generation earnings are linked to the
      aluminium forward curve.  Retail earnings, including
      earnings from the regulated business, are inflation linked
      throughout the rating horizon.

   -- Over the rating horizon, capex is forecast to average ISK9
      billion a year following capex deferrals in 2012 and 2013.
      This capex program restricts the level at which RE can de-

   -- An inflow of ISK8.9 billion is forecast in 2016 due to the
       maturity of the bond asset that RE owns.

   -- No dividends are assumed over the rating horizon.


Positive: Future developments that could lead to positive rating
action include:

   -- Continued tariff increases and operational outperformance
      leading to FFO net adjusted leverage below 6x and FFO
      interest cover over 5x on a sustained basis.

   -- Increased support from the parent including unconditional
      guarantees or prolonged restrictions on dividends.

Negative: Future developments that could lead to negative rating
action include:

   -- Restrictions on tariff increases and higher investments, or
      lack of proceeds on the 2016 bond asset, leading to FFO net
      adjusted leverage above 7x from YE16 and FFO interest cover
      under 4x on a sustained basis.

   -- Weaker parent support, including reinstatement of dividend
      payments or withdrawal of other support.


As of Sept. 30, 2014, the company had ISK16.6 billion in cash and
cash equivalents and ISK8.3bn of undrawn committed facilities
against short-term debt maturities of ISK16.4 billion.  Fitch
assesses the company's current liquidity as adequate to cover
operational requirements over the next 24 months due to our
expectation that it will remain significantly free cash flow
positive over the rating horizon.  Fitch considers 24 months
available liquidity as appropriate due to the high market
volatility RE faces on its aluminium, interest rate and foreign
exchange exposures.


SMURFIT KAPPA: S&P Rates EUR250MM Sr. Unsecured Notes 'BB+'
Standard & Poor's Ratings Services assigned its 'BB+' issue
rating to the proposed EUR250 million senior unsecured notes due
2025, to be issued by Smurfit Kappa Acquisitions, a wholly owned
subsidiary of Irish packaging group Smurfit Kappa Group PLC
(BB+/Stable/--).  S&P assigned a recovery rating of '3' to the
proposed senior unsecured notes, indicating its expectation of
meaningful (50%-70%) recovery in the event of a payment default.

At the same time, S&P is affirming the 'BB+' issue rating on the
company's existing senior unsecured notes.  The recovery rating
is unchanged at '3'.

The issue and recovery ratings on the proposed senior unsecured
notes are based on preliminary information and are subject to the
successful issuance of these facilities and S&P's satisfactory
review of the final documentation.

S&P understands that Smurfit Kappa intends to use the proceeds to
pay down part of the existing EUR750 million term loan A.


S&P's calculation of recovery prospects is based on its view of
the proposed unsecured notes ranking pari passu with the existing
senior unsecured notes and the unsecured bank facilities, which
include the term loan A and RCF.

The rating is supported by a comprehensive guarantee package, and
constrained by the lack of security and the fact that any
insolvency process would most likely cover multiple

S&P's default scenario assumes a revenue decline on the back of
weaker demand in the paper and packaging markets, greater margin
pressure in Europe, and increased losses due to foreign currency
volatility, mainly in Latin America.  S&P values Smurfit Kappa as
a going concern given the group's good cost base; strong market
positions in the fibre-based packaging industry; and high level
of vertical integration (including product distribution).

Simulated default assumptions:

   -- Year of default: 2019
   -- Stressed EBITDA: EUR420 mil.
   -- Implied enterprise value multiple: 6.0x
   -- Jurisdiction: Ireland

Simplified waterfall:

   -- Net value available to creditors (after 7% admin claims):
      EUR2.3 bil.
   -- Priority claims: EUR870 mil. (1)
   -- Unsecured debt claims: EUR3.0 bil. (2)
   -- Recovery expectation: 50%-70%

(1) Priority claims include pension underfunding, a
    securitization facility, finance leases, and some local
    working capital facilities.
(2) All debt amounts include six months of prepetition interest.

ST PAUL'S IV: Fitch Affirms 'B-sf' Rating on Class E Notes
Fitch Ratings has affirmed St Paul's CLO IV Limited as:

EUR248.25 million class A-1 affirmed at 'AAAsf'; Outlook Stable
EUR55.75 million class A-2 affirmed at 'AAsf'; Outlook Stable
EUR23.5 million class B affirmed at 'Asf'; Outlook Stable
EUR21 million class C affirmed at 'BBBsf'; Outlook Stable
EUR29 million class D affirmed at 'BBsf'; Outlook Stable
EUR14 million class E affirmed at 'B-sf'; Outlook Stable
EUR43.41 million subordinated notes: not rated

St. Paul's CLO IV Limited is an arbitrage cash flow
collateralized loan obligation (CLO).  Net proceeds from the
notes were used to purchase a EUR425m portfolio of European
leveraged loans and bonds.  The portfolio is managed by
Intermediate Capital Managers Limited.  The transaction features
a four-year re-investment period scheduled to end in 2018.


The affirmation reflects the transaction's performance being in
line with Fitch's expectations.  All portfolio quality tests and
portfolio profile tests are passing.

The transaction became effective as of May 2014.  Between closing
in March 2014 and the report date as of January 2015, the manager
made EUR0.86 million from trading, which marginally increased the
credit enhancement for all notes, with the class A-1 notes
increasing to 41.71% from 41.59% at closing and the most class E
notes increased to 8.07% from 7.88%.

The majority of underlying assets (89.9% of the portfolio) are
rated in the 'B' category.  There are no 'CCC' or below rated
assets and no defaulted assets.   According to the January 2015
report, the largest industry is healthcare with 14.25% and top
two industries make up 23.64%.  The largest country is France,
contributing to 19.1% of the portfolio, followed by the UK with
17.7%.  European peripheral exposure is presented by Spain and
Italy which make up 6.02% of the performing portfolio and cash
balance.  The largest single obligor is 2.35% with a trigger at
3% of the portfolio.


Fitch has incorporated two stress tests to simulate the ratings
sensitivity to changes of the underlying assumptions.

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


MONTE DEI PASCHI: Increases Size of Planned Fundraising to EUR3BB
Alan Tovey at The Telegraph reports that Italian bank Monte dei
Paschi di Siena has increased the size of its planned fundraising
to EUR3 billion (GBP2.2 billion) to meet capital targets set by
European regulators.

The world's oldest bank said on Feb. 11 that it would raise
EUR500 million more than it originally announced after the
results of stress tests on its ability to withstand another
crisis, which revealed it to be the weakest lender in the
Europe-wide financial health check, The Telegraph relates.

News of the larger fundraising came as the bank posted its annual
results, which revealed it made a net loss of EUR5.3 billion in
the year, as writedowns on its loans hit its profitability, The
Telegraph discloses.

It was the fourth year running the lender had ended up in the
red, and takes its losses since 2011 to EUR14.6 billion, The
Telegraph notes.

Monte dei Paschi, as cited by The Telegraph, said the European
Central Bank (ECB) had told it that it needed to have core
capital ratio of 10.2% to act as a financial buffer to protect
from future financial shocks.

                   About Monte dei Paschi

Banca Monte dei Paschi di Siena SpA -- is
an Italy-based company engaged in the banking sector.  It
provides traditional banking services, asset management and
private banking, including life insurance, pension funds and
investment trusts.  In addition, it offers investment banking,
including project finance, merchant banking and financial
advisory services.  The Company comprises more than 3,000
branches, and a structure of channels of distribution.  Banca
Monte dei Paschi di Siena Group has subsidiaries located
throughout Italy, Europe, America, Asia and North Africa.  It has
numerous subsidiaries, including Mps Sim SpA, MPS Capital
Services Banca per le Imprese SpA, MPS Banca Personale SpA, Banca
Toscana SpA, Monte Paschi Ireland Ltd. and Banca MP Belgio SpA.


KEMERI SANATORIUM: Sells Property For EUR2.86 Million
Baltic Course reports that a decision was made in a regular
meeting of creditors on February 3, to sell the Kemeri Sanatorium
property to the secured creditor Arhiidea, Ominasis Latvia
insolvency administrator Ainars Kreics informed LETA.

The price of EUR2.86 million was determined according to the
starting price of the last auction that failed to take place, the
report says.

According to the report, the secured creditor Arhiidea has
informed the administrator about its plans to cooperate with Park
Hotel Kemeri during the reconstruction project of the sanatorium.

Baltic Course relates that the company's representative Andrejs
Danengirss told the administrator that the profile of the
sanatorium will remain intact; after reconstruction works, the
sanatorium will resume operating in collaboration with the well-
known French company Vichy.

The Jurmala City Council, too, has been informed about the
buyer's future plans, the report says.

Ominasis Latvia insolvency administrator Kreics deemed the
October 2014 Kemeri Sanatorium auction to not have taken place,
Latvian Association of Certified Administrators of Insolvency
spokeswoman Justine Plumina informed LETA, Baltic Course recalls.

One bidder participated in the said auction, which conformed it
was ready to acquire the property for EUR3,000,000. However, the
bidder failed to make the payment within one month after the
auction, as stipulated by the law, the report adds.


STABILUS SA: Fitch Raises Issuer Default Rating to 'B+'
Fitch Ratings has upgraded Stabilus S.A.'s Issuer Default Rating
(IDR) to 'B+' from 'B'.  The Outlook is Stable.  The remaining
EUR256.1 million senior secured notes issued by Servus Luxembourg
Holding S.C.A. have been upgraded to 'BB'/'RR2' from 'BB-'/'RR2'.

The rating action reflects the reduction in funds from operations
(FFO) adjusted leverage below the previously stated upgrade
guidance of 4x as well as our expectations for further growth in
revenues and EBITDA and continuous solid free cash flow in the
foreseeable future.  Fitch also expects Stabilus to exceed the
previously stated upgrade guidance levels for FFO interest cover
(3.5x) and fixed charge cover (3x) in 2015 and beyond.

Stabilus has secured funding through bank loans to be drawn in
June 2015 (senior secured term loan of EUR270 million and a
revolving credit facility) of EUR50 million that will lead to
significantly lower interest expenses.

The Stable Outlook reflects the limited upgrade potential as the
ratings are constrained by Stabilus' limited scale and


Improving Business Profile:

Stabilus' business model shows a favorable mix between cash
generative mature products benefitting from scale effects and
market leadership as well as growth products such as the Powerise
(electromechanical openers) division that drives the revenue
expansion.  A continuous increase of Powerise's share strengthens
the overall product portfolio.  The company's commercial profile
is further enhanced by an increasingly diversified end market
exposure and contained customer concentration risk.  The sizeable
Industrials (including swivel chairs 32.8% of revenues for
FY2014) segment shows strong customer diversification.

Competitive threats remain:

Stabilus has successfully grown the Powerise segment, the key
contributor to its revenue and earnings expansion.  However,
Stabilus competes against much larger and diversified suppliers
and the segment requires high R&D and capex.

Solid Cash Generation

Fitch forecasts stable operating and free cash flows.  The
envisaged refinancing of the senior notes is expected to
significantly relieve the debt service burden.  Fitch's base
rating case also includes regular dividend payments of 40% of
projected net income provided Stabilus' underlying cash
generation continues to grow on its current trend and there is no
substantial re-leveraging.

Exposure to Volatile Markets

Stabilus predominantly operates in mature markets marked by high
demand volatility and cyclicality.  This is particularly relevant
given Stabilus' high operating leverage.  A sustained decline in
demand could materially weaken its profitability and cash flow

Further Growth and Solid Profitability

Stabilus has grown significantly in the past three years, growing
sales at a CAGR of 7.2% between FY2011 to FY2014, while adding
more than EUR25 million in EBITDA during this period, with the
absolute level reaching EUR89.9 million after adjusting for one-
off costs which relate to the IPO.  Key contributor to this
growth in sales and profitability was the Powerise segment which
grew around 55% (EUR30.3 million) for FY2014 (growth FY2013: 81%,
EUR25.2 million).  Further growth in this segment is anticipated.


Fitch's key assumptions within Fitch's rating case for the issuer

   -- further increase in revenues, mainly driven by Powerise
   -- largely stable operating margin
   -- significantly lower interest expenses
   -- capex at 7%-8% of sales
   -- dividend payments of 40% net income


Positive: Future developments that could lead to positive rating
actions include:

  Further upgrades are unlikely given Stabilus' scale.  Before an
  upgrade can be considered a significant improvement in scale
  and diversification would be a pre-requisite.

Negative: Future developments that could lead to negative rating
action include:

  A negative rating action could be considered if FFO net
  adjusted leverage exceeds 3.5x on a sustainable basis and free
  cash flow margin deteriorates to below 2%.


PROSENSA HOLDING: Discloses Advance Liquidation Distribution
Prosensa Holding N.V., the biopharmaceutical company focusing on
RNA-modulating therapeutics for rare diseases with high unmet
need, disclosed that, on February 11, 2015, it will file a Form
25, Notification of Removal from Listing and/or Registration
under Section 12(b) of the Securities Exchange Act of 1934 (the
"Exchange Act") (the "Form 25"), with the Securities Exchange
Commission in order to voluntarily delist the registered shares
of the Company, nominal value EUR0.01 per share from the NASDAQ
Global Select Market, which will become effective 10 days after

NASDAQ has advised the Company that it will suspend trading of
the Shares after the market closes on February 11, 2015. As such,
shareholders of the Company will not be able to trade their
shares on NASDAQ thereafter.
As previously disclosed, BioMarin Falcons B.V. and BioMarin
Giants B.V., both indirect or direct subsidiaries of BioMarin
Pharmaceutical Inc., now collectively hold 96.76% of the Shares.
On February 5, 2015, Prosensa and BioMarin Falcons entered into
an asset sale agreement whereby BioMarin Falcons will acquire all
of Prosensa's assets and assume all of Prosensa's liabilities.

The Company expects the Asset Sale to close on February 12, 2015.
In conjunction with the Asset Sale, Prosensa will make an advance
liquidation distribution to its remaining shareholders with each
remaining shareholder receiving a cash payment equal to $17.75
per Share and one contingent value right to receive cash payments
of up to $4.14 per Share in the aggregate upon the achievement of
certain product approval milestones, without interest thereon and
less any applicable withholding taxes.

If a shareholder of Prosensa holds its shares of Prosensa through
the Depositary Trust Company, the shareholder will receive its
advance liquidation distribution through the Depositary Trust
Company.  Following the Asset Sale and advance liquidation
distribution, Prosensa is not expected to have any assets and no
further distributions are expected to be made.

Additionally, upon satisfaction of the applicable requirements
for deregistration, Prosensa intends to file a Form 15 with the
SEC under the Exchange Act, requesting the deregistration of the
Shares under the Exchange Act and the suspension of the Company's
reporting obligations under the Exchange Act.  The Company has
not arranged (nor is it planning to arrange) for the listing of
the Shares on another U.S. securities exchange or for quotation
of the Shares on any other quotation medium in the United States.

Additionally, following the Asset Sale and advance liquidation
distribution, Prosensa will have no assets and the Shares are
expected to have little to no value.

The Company reserves the right, for any reason, to delay these
filings or to withdraw them prior to their effectiveness, and to
otherwise change its plans in this regard.

                     About Prosensa Holding N.V.

Prosensa Holding N.V. is a biotechnology company engaged in the
discovery and development of RNA-modulating therapeutics for the
treatment of genetic disorders.  Its primary focus is on rare
neuromuscular and neurodegenerative disorders with a large unmet
medical need, including Duchenne muscular dystrophy, Myotonic
Dystrophy and Huntington's disease.


LYNGEN MIDCO: Moody's Assigns '(P)B1' Corporate Family Rating
Moody's Investors Service, has assigned a provisional (P)B1
corporate family rating (CFR) to Lyngen Midco AS ("EVRY").
Concurrently, Moody's has also assigned provisional (P)B1 ratings
to the NOK900 million Term Loan A, NOK3,600 million equivalent
Term Loan B and NOK1,000 million Revolving Credit Facility, all
issued on a senior secured basis by Lyngen Bidco AS. The outlook
on all ratings is stable.

The proceeds of the debt issuance will be used to partially
finance the acquisition of EVRY ASA by Lyngen Bidco, indirectly
controlled by the Apax Funds, pay transaction costs and will have
NOK180 million of cash overfunding which is to remain on the
balance sheet at closing.

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

Ratings Rationale

The (P)B1 CFR is constrained by: (1) expectation of declining
revenues in the short term as EVRY transitions away from large
enterprise contracts to the smaller midmarket clients; (2)
organic growth is expected to be limited due to high levels of
customer stickiness inherent in the industry; (3) cost saving
benefits of increased use of offshoring of employee base to be
balanced against advantages of a strong local presence; (4) free
cash flow levels expected to remain constrained by continued low
margins, together with restructuring costs.

At the same time, the CFR is supported by: (1) EVRY's strong
niche position for supplying midmarket customers within the IT
services industry in Norway and Sweden; (2) the high levels of
recurring revenues from its mission critical IT services; (3) the
scope for incremental margin improvement as the business seeks to
pursue a strategy of cost rationalization and efficiency
enhancements; (4) moderate opening leverage.

EVRY is a leading Nordic IT company providing services related to
IT operations (42% of revenues), solutions (25%) and consulting
(33%) to Nordic companies, financial institutions, national
public sector entities, municipalities and health authorities.
EVRY's operations are almost entirely focused on Norway and
Sweden, accounting for around 97% of revenues. However, while
this constrains the business profile in terms of its geographic
diversity, EVRY's established leading market shares in the
midmarket sector of these countries provide a substantial
defendable customer base.

EVRY's longstanding customer relationships for providing mission
critical IT services drive high levels of recurring revenues. It
is also the case within the IT services industry as a whole that
switching costs are high and disruptive which contributes to the
relatively low level of customer churn. For an incumbent such as
EVRY this acts as a high barrier to entry and helps to maintain
its existing market share, however at the same time it means that
attracting new clients to EVRY from their existing provider is
also difficult. As a result, this industry is characterized by
inherently low levels of organic growth which tends to track the
cyclicality of the macroeconomic environment in the Nordics.

In recent years, EVRY has shifted its focus away from the global
enterprise market, where it faces stronger competition from the
large global IT consultancy firms, to smaller midmarket clients
(specifically clients with 100-1000 FTEs). While EVRY will
benefit over the longer term from repositioning its core client
base to the midmarket in terms of the reduced competition from
global competitors, in the shorter term EVRY has lost large
contracts with two of its biggest enterprise clients. The effect
of these legacy contracts winding down over the next three years
is expected to outweigh organic growth in other areas, meaning
that revenues are expected to decline slightly over this period.

On this basis, EVRY is focusing on cost reductions and efficiency
enhancements to drive margin improvement and maintain absolute
EBITDA levels. Its strategy is based around increasing the
utilization of its consultancy business, streamlining and
standardizing its infrastructure (particularly its data centers),
and through further benefitting from the use of lower-cost
offshore locations. EVRY currently has only 12% of its workforce
offshore, which is considerably less than other peers. However,
while there is opportunity for the increased use of offshore
delivery, this should be considered in the context of maintaining
the company's current key competitive advantage of having a
strong local presence, with 50 offices across the Nordics.

EVRY's opening leverage is moderate for the rating category, with
Moody's adjusted Debt/EBITDA of 4.4x (pro forma for the
transaction and based on expected 2014 EBITDA and including
Moody's standard operating lease adjustment). However, with very
limited amortization in the debt structure, any future
deleveraging relies on EBITDA improvements and with relatively
flat EBITDA anticipated in the short run, Moody's expects
leverage to remain around the current level for the next 12-24
months. Over the longer term however, while not part of
management's current strategy, Moody's expects EVRY to consider
strategic alternatives to boost growth and value for its
shareholders, such as further penetration of the banking sector
in Sweden.

Moody's considers EVRY's liquidity profile to be adequate. At the
closing of the transaction, EVRY will have NOK180 million of cash
on the balance sheet and a fully undrawn NOK1,000 million
Revolving Credit Facility, maturing 2021, providing a good
liquidity cushion. While EVRY's cash flows are going to be
impacted by restructuring costs for the next couple of years,
Moody's expects it to be free cash flow positive through 2015-16.
Amortization on the NOK900 million Term Loan A does not start
until 2016.

Structural Considerations

The Term Loan A (due 2021), the Term Loan B (due 2022) and the
Revolving Credit Facility (due 2021) are all senior secured
instruments and are all rated (P)B1, in line with the CFR,
reflecting the fact that they are the only debt instruments in
the capital structure and all rank pari passu.


The stable outlook reflects Moody's view that EVRY's Moody's
adjusted gross leverage is likely to remain around 4.4x for the
next 12-24months. The outlook also assumes no debt-funded
acquisitions, as well as ongoing adequate liquidity.

What Could Change the Ratings -- UP

Positive pressure could arise if the group's cost restructuring
plan and organic growth strategy leads to increased profitability
and cash flows such that leverage falls towards 3.5x on a
sustainable basis and free cash flow to debt moves towards the
high single digits.

What Could Change the Ratings -- DOWN

Conversely, the rating could come under pressure if EVRY's cost
restructuring does not deliver margin improvement leading to
leverage rising above 5.0x; free cash flow to debt declines
towards 0%; or if its liquidity profile deteriorates.

The principal methodology used in these ratings 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.

Corporate Profile

EVRY, headquartered in Oslo, Norway, is a leading Nordic IT
company providing services related to IT operations (42% of
revenues), solutions (25%) and consulting (33%) to Nordic
companies, financial institutions, national public sector
entities, municipalities and health authorities. EVRY has over 50
offices and 19 data centers across Norway and Sweden. Norway
accounts for around 67% of revenues, and Sweden around 30%. For
the last twelve months to September 2014 EVRY reported revenues
of NOK12,973 million and an EBITDA of NOK1,261 million.

LYNGEN MIDCO: S&P Assigns Preliminary 'B+' CCR; Outlook Stable
Standard & Poor's Ratings Services assigned its preliminary 'B+'
long-term corporate credit rating to Norwegian-based information
technology (IT) company Lyngen Midco AS (EVRY).  The outlook is

At the same time, S&P assigned its preliminary 'B+' issue rating
to the proposed senior secured loans issued by Lyngen Bidco AS,
due 2021 and 2022, and the revolving credit facility (RCF) due
2021.  The preliminary '3' recovery rating indicates S&P's
expectation of meaningful (50%-70%) recovery in the event of a

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 the
final ratings.  If Standard & Poor's does not receive the final
documentation within a reasonable time frame, or if the final
documentation departs from the materials S&P has already
reviewed, it reserves the right to withdraw or revise its
ratings.  Potential changes include, but are not limited to,
utilization of loan proceeds, the maturity, size, and conditions
of the loan, financial and other covenants, security, and

In December 2014, Lyngen Bidco (indirectly controlled by
financial sponsor Apax) announced an offer to acquire Norwegian
IT service provider EVRY ASA through a leveraged buyout (LBO).
S&P's preliminary long-term corporate credit rating on EVRY, the
new holding company, reflects S&P's view of high competition, the
company's limited geographic diversification, and its small
market position in Sweden, as well as S&P's anticipation of a
decline in reported revenues in coming years and modest
profitability.  S&P's preliminary rating also accounts for its
assessments of EVRY's "fair" business risk profile and its
"aggressive" financial risk profile.

EVRY operates in relatively fragmented markets and competes with
a number of local and regional players for the midsize segment
(companies with between 100 and 1000 employees).  EVRY also
competes with larger international players, but these companies
mainly target larger customers, a segment from which EVRY is
gradually moving away.  The company operates primarily in Norway
and, to a lesser extent, in Sweden, where it ranks No. 4, with an
8% market share.

An additional constraint on the rating, in S&P's view, is the
negative trend in reported revenues over the next three years,
caused by a gradual reduction in large outsourcing contracts, and
modest profitability.  The Standard & Poor's-adjusted EBITDA
margin (after capitalized development costs and restructuring
costs, but benefitting from operating lease adjustments, as per
S&P's rating approach) for EVRY stood at 11.9% in 2013.  Although
management's plans include cost reductions that will raise
profitability as of 2016, execution risk will likely continue to
constrain the rating until EVRY demonstrates a track record of
improving margins.  S&P considers EVRY's overall competitive
position to be weaker than that of larger international
competitors, including IBM Corp., Cap Gemini S.A., and Computer
Sciences Corp., which benefit from greater scale and
diversification, or higher profitability.

"We believe that these weaknesses are partly offset by EVRY's
resilient business model, leading market positions in Norway, a
large degree of customer and product diversification, and growth
opportunities.  EVRY's revenues are robust in its Operations and
Financial Services divisions (75% of total revenues), supported
by long-term contracts, a meaningful amount of recurrent
revenues, and low customer churn.  With a 31% share of the
overall IT market, EVRY enjoys a strong position in Norway.  The
company also holds 37% of the outsourcing market and an even
stronger position in the IT banking market.  EVRY serves a number
of midsize companies operating in various industries, including
the public sector.  Also, EVRY offers traditional outsourcing and
consulting IT services, as well as a broad range of financial
services to banks and financial institutions (a segment where
customers tend not to move frequently, given high switching
costs, in our opinion).  Another rating strength is the
supportive environment in both Norway and Sweden, strong
economies where we expect IT spending to continue to grow," S&P

S&P said: "Furthermore, the preliminary rating reflects EVRY's
high debt, though S&P notes that its debt levels will be lower
that of than peers that have recently undergone an LBO.  At year-
end 2015, S&P forecasts a gross adjusted debt-to-EBITDA ratio of
4.6x-4.7x, free operating cash flow (FOCF) to debt at 7%-8% and
funds from operations (FFO) to debt of 20%.  S&P's debt
adjustment excludes the entire financial contribution of the
sponsor, including preferred equity certificates and shareholder
loans at holdings above EVRY, according to S&P's criteria.  These
weaknesses are somewhat mitigated by EBITDA cash interest
coverage of about 5x -- including S&P's understanding that at
least 50% of interest rates will be fixed -- and our anticipation
of positive and gradually increasing FOCF generation."

S&P's comparable ratings analysis of EVRY leads S&P to apply a
one-notch downward adjustment to the anchor.  S&P views EVRY's
business risk profile as being at the lower end of S&P's "fair"
business risk category, given its limited geographic
diversification and modest profitability.  The downward
adjustment also reflects S&P's view of some execution risk in the
company's strategy to strengthen revenues and improve

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

   -- IT market growth in Norway and Sweden, broadly in line with
      the GDP growth of the two countries.

   -- A stable market position, resulting in organic revenue
      growth of 2%-3% for its core segments.

   -- A 4%-5% decline in revenues in 2015 and 2016, caused by the
      loss of large enterprise contracts.  S&P expects remaining
      contracts with large enterprises to represent a small
      portion of total revenues after 2016.

   -- Large savings over the coming years through cost-cutting
      measures, such as increased use of offshore delivery,
      increased standardization of processes, and lower central
      costs.  This will be more than offset by annual
      restructuring costs of Norwegian kroner (NOK) 200 million-
      NOK250 million (approximately EUR23 million-EUR28 million)
      in 2015, before declining gradually thereafter.

   -- Capital expenditures of about 4% of revenues.

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

   -- Adjusted EBITDA margins of 10%-12% in 2015-2016.
   -- Adjusted debt to EBITDA of 4.6x-4.7x in 2015 and 4.5x in
      2016.  However, because S&P expects cash to accumulate in
      absence of debt repayment obligations, S&P forecasts
      adjusted net debt to EBITDA at 4.2x in 2015 and at 4.0x in
   -- FOCF to debt at about 7%-9% in 2015 and 2016.

The stable outlook reflects S&P's anticipation that EVRY will
post adjusted debt to EBITDA below 5x, FOCF to debt greater than
5%, and "adequate" liquidity.

S&P could lower the rating on EVRY if adjusted debt to EBITDA
exceeded 5x, for instance on additional debt if EVRY's owner
adopted a more aggressive financial policy than S&P anticipates,
or weaker-than-expected revenue growth combined with larger
restructuring costs.  S&P could also lower the rating if FOCF
weakened to below 5% of debt.

Ratings upside is remote in the next 12 months, given S&P's
anticipation of declining revenues and an adjusted EBITDA margin
in the 10%-12% range.


JASTRZEBSKA SPOLKA: Miners' Strike May Prompt Collapse
Piotr Skolimowski and Konrad Krasuski at Bloomberg News report
that Polish Prime Minister Ewa Kopacz said Jastrzebska Spolka
Weglowa SA may collapse as miners step up a strike to block cost-
cutting plans.

According to Bloomberg,  JSW spokeswoman Katarzyna Jablonska-
Bajer said in an e-mail on Feb. 11 production at all five JSW
mines in southern Poland is halted and almost 4,800 workers are
holding a sit-in strike, demanding the government fire Chief
Executive Officer Jaroslaw Zagorowski.  The protest started two
weeks ago after Mr. Zagorowski proposed cutting some benefits and
freezing wages to offset the impact of falling coal prices on
earnings, Bloomberg relays.

The company, which went public in 2011, had a net loss of PLN305
million (US$82 million) in the first nine months of 2014,
compared with a profit of PLN71.7 million a year earlier,
Bloomberg discloses.

Deputy Treasury Minister Rafal Baniak said on Feb. 10 JSW needs
restructuring and it's not up to the unions to decide whether the
Polish mining industry's longest-serving CEO should leave,
Bloomberg relates.  Mr. Baniak, as cited by Bloomberg, said talk
of Mr. Zagorowski's dismissal is "of secondary importance at the

Chief Financial Officer Robert Kozlowski said the strike has cut
JSW's sales by PLN130 million since it began on Jan. 28,
Bloomberg notes.

Jastrzebska Spolka Weglowa SA is the European Union's biggest
coking coal producer.

* POLAND: Number of Bankruptcies Down 3.3% in January 2015
Wojciech Rylukowski at Warsaw Business Journal, citing data from
the Export Credit Insurance Corporation (KUKE), reports that
there were 59 bankruptcies recorded in Poland in January 2015.

According to WBJ, the figure was 3.3% lower than the one recorded
in January 2013 and December 2014.  The number of bankruptcies
due to insolvency in the period between February 2014 and January
2015 stood at 816, WBJ discloses.


SAGRES DOURO: S&P Raises Rating on Class C Notes to 'BB(sf)'
Standard & Poor's Ratings Services took various credit rating
actions in SAGRES Sociedade de Titularizacao de Creditos, S.A.'s
Douro Mortgages No. 1.

Specifically, S&P has:

   -- Lowered to 'BBB+ (sf)' from 'A- (sf)' its rating on the
      class A notes and to 'BB (sf)' from 'BBB- (sf)' its rating
      on the class B notes; and

   -- Raised to 'BB (sf)' from 'BB- (sf)' its rating on the class
      C notes and to 'BB- (sf)' from 'B (sf)' its rating on the
      class D notes.

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

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

The rating actions follow S&P's credit and cash flow analysis of
recent transaction information that it has received for September
2014.  S&P's analysis reflects the application of its residential
mortgage-backed securities (RMBS) criteria and its RAS criteria.

Under S&P's RAS criteria, it applied a hypothetical sovereign
default stress test to determine whether a tranche has sufficient
credit and structural support to withstand a sovereign default
and so repay timely interest and principal by legal final

S&P's RAS criteria designate the country risk sensitivity for
RMBS as "moderate".  Under S&P's RAS criteria, this transaction's
notes can therefore be rated four notches above the sovereign
rating, if they have sufficient credit enhancement to pass a
minimum of a "severe" stress.  In addition, if all six of the
conditions in paragraph 48 of the RAS criteria are met, S&P can
assign ratings in this transaction up to a maximum of six notches
(two additional notches of uplift) above the sovereign rating,
subject to credit enhancement being sufficient to pass an
"extreme" stress.

As S&P's unsolicited long-term rating on the Republic of Portugal
is 'BB', S&P's RAS criteria cap at 'A (sf)' the maximum potential
rating in this transaction for the class A notes.  The maximum
potential rating for all other classes of notes is 'BBB+ (sf)'.

This transaction features an amortizing reserve fund, which
currently represents 1.60% of the outstanding balance of the

Severe delinquencies of more than 90 days at 1.73% are lower for
this transaction than S&P's Portuguese RMBS index.  This
transaction features a provisioning mechanism for loans
approaching default.  This mechanism traps an increasing amount
of cash within the transaction as loans move through delinquency
toward default.  Prepayment levels remain low and the transaction
is unlikely to pay down significantly in the near term, in S&P's

Following the application of S&P's RAS criteria and its RMBS
criteria, S&P has determined that its assigned rating on each
class of notes in this transaction should be the lower of (i) the
rating as capped by S&P's RAS criteria and (ii) the rating that
the class of notes can attain under S&P's RMBS criteria.  In this
transaction, the ratings on the class A, B, and C notes are
constrained by the rating on the sovereign.

The class A notes cannot support the stresses that S&P applies at
a 'AAA' rating level.  S&P considers that all six conditions in
paragraph 48 of the RAS criteria are therefore not met and that
available credit enhancement for the class A notes is
insufficient to pass an extreme stress.  Consequently, we can
assign a rating on the class A notes up to a maximum of four
notches above the 'BB' sovereign rating.  The class A notes can
achieve this rating under S&P's RMBS criteria.  S&P has therefore
lowered to 'BBB+ (sf)' from 'A- (sf)' its rating on the class A

The credit enhancement for the class B notes cannot support the
stresses that S&P applies to pass a severe stress under its RAS
criteria.  This analysis indicates that S&P cannot assign any
uplift above the sovereign rating.  S&P has therefore lowered to
'BB (sf)' from 'BBB- (sf)' its rating on the class B notes.

The available credit enhancement for the class C notes is
insufficient to withstand any additional stress under S&P's RAS
criteria and it can therefore apply no uplift above the sovereign
rating.  However, S&P believes that its available credit
enhancement is commensurate with a 'BB (sf)' rating, based on its
RMBS criteria.  S&P has therefore raised to 'BB (sf)' from 'BB-
(sf)' its rating on the class C notes.

The available credit enhancement for the class D notes is
insufficient to withstand any additional stress under S&P's RAS
criteria and it can therefore apply no uplift above the sovereign
rating.  In light of the stable performance of the transaction,
and based on S&P's RMBS criteria, it believes that the class D
notes' available credit enhancement is commensurate with a
'BB- (sf)' rating.  Banco BPI S.A. (BB-/Stable/B) provides an
interest rate swap to the transaction.  In S&P's analysis of the
class D notes, it gives credit to this swap.  Under S&P's current
counterparty criteria, if it deems a swap provider to be
ineligible, the rating on any supported class of notes is capped
at the long-term issuer credit rating of the swap provider.  S&P
has therefore raised to 'BB- (sf)' from 'B (sf)' its rating on
the class D notes.

S&P also considers credit stability in its analysis.  To reflect
moderate stress conditions, S&P adjusted its weighted-average
foreclosure frequency (WAFF) assumptions by assuming additional
arrears and fluctuations on house prices for one-year and three-
year horizons.  This did not result in S&P's rating deteriorating
below the maximum projected deterioration that it would associate
with each relevant rating level, as outlined in S&P's credit
stability criteria.

S&P expects severe arrears in the portfolio to remain at their
current levels due to slow economic growth and high unemployment.
S&P expects the real estate market to stabilize in 2015.
However, price rises will likely be limited (1.0% in 2015), as
housing demand will stay constrained.

Douro Mortgages No. 1 is a Portuguese RMBS transaction, which
closed in November 2005 and securitizes first-ranking mortgage
loans.  Banco BPI originated the pool, which comprises loans
backed by properties located in Portugal.


S&P's ratings are based on its applicable criteria, including
those set out in the criteria article "Update To The Criteria For
Rating Portuguese Residential Mortgage-Backed Securities,"
published on Jan. 6, 2009.  However, these criteria are under

As a result of this review, S&P's future criteria applicable to
rating transactions backed by Portuguese mortgage assets may
differ from S&P's current criteria.  These criteria changes may
affect the ratings on the outstanding RMBS transactions that S&P
rates.  Until such time that S&P adopts new criteria, it will
continue to rate and surveil these transactions using its
existing criteria.


Class       Rating            Rating
            To                From

SAGRES Sociedade de Titularizacao de Creditos, S.A.
EUR1,509 Million Mortgage-Backed Floating-Rate Securitization
Notes (Douro Mortgages No. 1)

Ratings Lowered

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

Ratings Raised

C           BB (sf)           BB- (sf)
D           BB- (sf)          B (sf)


TAVRICHESKY BANK: Placed Into Temporary Administration
The Moscow Time reports that following months of problems at mid-
sized lender Tavrichesky Bank, Russian regulators said Wednesday
that the bank had been put into temporary administration.

Russia's Deposit Insurance Agency will run the bank while it
carries out an investigation into the organization's financial
position, according to a Central Bank statement, the report

A series of bank bailouts have taken place in recent months as
the Russian authorities struggle to manage a growing banking
crisis sparked by high interest rates and a deepening economic
recession, according to The Moscow Time.

The report relates that Tavrichesky bank is in line for a 35
billion ruble (US$530 million) bailout, according to a report in
the Vedomosti business daily.

The report relays that problems with the St. Petersburg-based
bank, which recently announced a plan to boost retail lending,
first emerged in December when customers suddenly found they were
unable to withdraw funds.

Tavrichesky Bank is the 110th largest bank in Russia by asset
volume, according to industry website  The lender is
owned by a complex web of dozens of minority shareholders,
according to Central Bank data.


BANCO BILBAO: Moody's Rates Tier 1 Securities 'Ba2(hyb)'
Moody's Investors Service has assigned a Ba2 (hyb) rating, with a
stable outlook, to the non-step-up non-cumulative contingent
convertible perpetual preferred Tier 1 securities of Banco Bilbao
Vizcaya Argentaria, S.A. (BBVA, deposits Baa2 positive, bank
financial strength rating (BFSR) C- stable /baseline credit
assessment (BCA) baa2).

Ratings Rationale

The Ba2 (hyb) rating assigned to the notes is based on BBVA's
creditworthiness and is placed three notches below the bank's
baa2 adjusted BCA, in line with Moody's "Global Banks" rating
methodology, Guidelines for Rating Junior Debt Obligations. The
positioning of BBVA's Ba2 (hyb) rating takes into consideration
Moody's assessment of the risks of mandatory and/or discretionary
coupon suspension on a non-cumulative basis, and the contractual
equity conversion feature in combination with the Tier 1 notes'
deeply subordinated claim in liquidation.

The notes are perpetual and preferred, and have a non-cumulative
optional and a mandatory coupon-suspension mechanism. A
conversion into common shares is triggered if the bank's or
group's Core Equity Tier 1 (CET1) capital ratio falls below
5.125%, or if a capital reduction event occurs. The issuer will
calculate and publish the CET1 ratio at least quarterly. The
issuer can make changes to the terms of the securities with the
consent of the Principal Paying Agent and the Commissioner, with
the latter representing the noteholders.

Principal Methodology

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


BANK FORUM: Fund Asks Court to Explain Liquidation Revocation
Interfax-Ukraine reports that Individuals' Deposit Guarantee Fund
has asked the Higher Administrative Court of Ukraine to explain
its ruling which cancelled the liquidation of Bank Forum (Kyiv).

Andriy Olenchyk, deputy director of the Fund, said that the
Higher Administrative Court of Ukraine only revoked the interim
decision on the bank, Interfax-Ukraine relates.

"This does not influence the liquidation any way, as the bank is
being liquidated not on the basis of our decision, but on the
basis of the decision of the National Bank of Ukraine,"
Interfax-Ukraine quotes Mr. Olenchyk as saying.  "I do not rule
out that finally the ruling could have no realistic legal
consequences, apart from moral satisfaction. We should wait for
the explanations of the court."

On Jan. 22, Ukraine's Higher Administrative Court overturned the
decision made by the Individuals' Deposit Guarantee Fund to
liquidate Bank Forum, satisfying an appeal made by bank majority
shareholder Yernamio Consulting Ltd., Interfax-Ukraine recounts.

FERREXPO PLC: Fitch Affirms 'CCC' Long-Term Issuer Default Rating
Fitch Ratings has affirmed UK-incorporated Ukrainian iron ore
pellets producer Ferrexpo Plc's Long-term Issuer Default Rating
(IDR) at 'CCC' and Short-term IDR at 'C'.  The senior unsecured
rating of Ferrexpo Finance plc's 2016 guaranteed notes issue has
also been affirmed at 'CCC' with a Recovery Rating (RR) of 'RR4'.
In addition, Fitch has affirmed the 'CCC(EXP)' expected senior
unsecured rating on the issue of new notes under the Exchange
Offer in respect of the 2016 notes.

Since the assignment of the 'CCC(EXP)' rating to the new notes on
Jan. 19, 2015, the terms of the Exchange Offer have been modified
to extend the early bird period to February 20, 2015 and increase
the cash pre-prepayment amount to 25% of the nominal amount of
the bonds (previously 20%) with the remaining 75% exchanged with
the new notes.

Ferrexpo's ratings are constrained by Ukraine's Country Ceiling
(CCC) due to the company's large operational exposure to the
country.  The company's lack of geographic and commodity
diversification further constrains the rating.  Ferrexpo's credit
strengths include its competitive cost position in the iron ore
pellets market, significant reserve base, proximity to consumer
markets, and expected moderate leverage over the medium term.


Ratings Constrained by Country Ceiling

Ferrexpo's ratings are constrained by the Ukrainian Country
Ceiling due to its operating base within the country. Ukraine has
recently experienced high domestic inflation, hryvnia
depreciation (by more than 50% in 2014 versus the US dollar),
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 so far have not been directly impacted by the
conflict in the Donbas region, as all assets are located in the
Poltava region, around 425km north of Donetsk.

Low Iron Ore Price Environment

In 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% of operating costs are linked to the hryvnia).
Costs had 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

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 currency depreciation. The ongoing
fall in iron ore prices will erode future EBITDA margins, which
we forecast to decline to 27% in 2016.  Funds from operations
(FFO)-adjusted gross leverage will increase to 3.8x in 2014 and
peak at 5.8x in 2015 (under Fitch's new iron ore price deck) but
should stabilize at around 2.0x 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 repayment schedule, by
extending the notes' maturity and progressively reducing absolute
debt levels.

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.  However, liquidity
may be put under pressure in 2016 should the bond exchange fail
to materialize and should iron ore prices remain materially under
USD80 per tonne.


   -- Fitch iron ore price deck: USD65/t in 2015, USD75/t in
      2016, USD80/t in the long term.

   -- Forecast price premium for pellets based on 9M14 realised

   -- Production volumes in line with management's expectations:
      12mt p.a. iron ore pellets by 2016.

   -- Bond exchange offer is assumed to be accepted at the
      minimum level (i.e. USD300 million).

   -- USD/UAD 17 in 2015.


Changes to Ukraine's Country Ceiling, which may accompany a
change to its sovereign rating, would likely result in a
corresponding action on Ferrexpo's ratings.

The main factors that could, individually or collectively, result
in a downgrade of the sovereign rating are:

   -- Intensification of political and/or economic stress,
      potentially leading to a default on government debt.

The main factors that could, individually or collectively, could
result in an upgrade of the sovereign rating are:

   -- Improvement in political stability.

   -- Progress in implementing economic policy agenda agreed with
      the IMF.

   -- Improvement in external liquidity.

NAFTOGAZ NJSC: Fitch Affirms 'CCC' Issuer Default Rating
Fitch Ratings has affirmed NJSC Naftogaz of Ukraine's Long-term
foreign and local currency Issuer Default Ratings (IDR) at 'CCC'.

Naftogaz's ratings are aligned with those of Ukraine (CCC), its
sole shareholder, and reflect its strong links with the state,
the continued weakness of the company's financial profile and its
exposure to political risks.  Fitch considers that timely
financial support from the state remains critical for its
solvency as Naftogaz has a significant operating deficit caused
by the disparity between imported gas prices and domestic gas
tariffs.  Fitch believes that the company is likely to default
without such support.

Naftogaz is Ukraine's major natural gas production, distribution
and transit company.  In 2014 it produced 17 billion cubic meters
of gas (bcm) and imported 19.3bcm from Russia and EU.


Rating Linked With Sovereign

Naftogaz's ratings are aligned with those of Ukraine.  This
approach reflects the company's strategic importance to the state
as a monopolistic gas distributor, as well as state subsidies and
other forms of tangible financial support provided to Naftogaz.
The state directly guarantees some of Naftogaz's loans, which is
another indication of its support.  In addition, Naftogaz's
performance is closely monitored by IMF, Ukraine's major lender,
which creates incentives for the state to keep Naftogaz
adequately funded.

Total state subsidies to Naftogaz in 2014 amounted to around
UAH108 billion (USD9.0 billion).  The government has already
committed to inject at least UAH31.5 billion (USD1.9 billion)
into the company in 2015.

Operating Deficit Remains

Naftogaz's operating deficit will remain high in 2015, as
domestic gas tariffs are still likely to be insufficient to cover
imported gas prices.  Fitch expects that oil-indexed imported gas
prices will decrease in 2015 following falling crude prices, but
this will be largely undermined by the hryvnia depreciation, weak
receivables collection from supplies to the South East of the
country and lower transit volumes.  Fitch estimates Naftogaz's
2014 operating deficit at around USD4 billion, mainly caused by
the disparity between imported gas prices and regulated domestic
gas tariffs.  The government has committed to gradually raise
domestic gas prices to eliminate the deficit.  However, it is
still difficult to estimate the 2015 gap as there is not yet any
clarity regarding the 2015 tariff indexation.

Disputes With Gazprom

Naftogaz's strained relations with its major supplier OAO Gazprom
(BBB-/Negative) mirror the political tensions between Russia and
Ukraine and negatively affect Naftogaz's credit quality.
Naftogaz is seeking to recover USD6 billion from Gazprom for
overcharged amounts for the gas supplied in 2011-2014.  In turn,
Gazprom claims that Naftogaz still owes the company USD2.4
billion for the gas supplied in 2014, including fines.

Naftogaz and Gazprom signed a 10-year gas supply contract in
2009. However, it has effectively been abandoned as Ukraine
believes the contract is not fair and is disputing it with the
Stockholm arbitration court.  For the time being, Naftogaz's gas
purchases from Gazprom are governed by the so called "winter
package" of agreements.

In addition, Naftogaz and Gazprom signed a 10-year gas transit
contract in 2009.  This contract is also under the dispute in
Stockholm arbitration.  Naftogaz is seeking to recover USD6.2bn
from Gazprom for compensation of incurred loses.  Gazprom denies
the claim.

The legal proceedings between Naftogaz and Gazprom may take a
significant amount of time and the outcome is difficult to
predict.  This exposes Naftogaz to significant risks.  Potential
interruption of supplies is another risk.  The parties have not
yet agreed the gas price effective from April 1, 2015, when the
"winter package" expires.  Gazprom believes that the 2009
contract is still valid but Naftogaz does not seem to be willing
to observe it as it considers the price and some other terms and
conditions are non-market.

Transit Volumes to Decrease

Ukraine remains a major transit route for the Russian natural gas
sold to Europe.   However, its significance has reduced after
Russia launched the Nord Stream pipeline in 2011-2012.  In 2014
transit volumes stayed at around 62bcm compared with 104bcm in
2011.  Fitch estimates this may fall further to 50bcm in 2015.
Fitch also expects that the total transit fee for 2015 will not
exceed USD1.5 billion, compared with USD3.0 billion earned in
2011.  In the longer term, the decline may be even more
significant, taking into account Gazprom's efforts to bypass
Ukraine as a transit country.

Lower Import Prices

Low oil prices are positive for Naftogaz as prices for imported
natural gas are linked to those of oil products with a six to
nine months lag.  Fitch consequently expects the company's
average gas import price to fall significantly from the current
level as oil prices have halved from USD108/bbl in July 2014 to
USD50/bbl in January 2015.  However, lower import prices will not
significantly reduce the company's operating deficit in view of
other negative factors, such as the hryvnia depreciation and weak
receivables collection in the South East of the country.

Supply Diversification Positive

Naftogaz's steps taken to diversify away from the Russian gas
should strengthen its business profile as political tensions
between the two countries are likely to remain in place.  In 2014
Ukraine purchased 14.4bcm of natural gas from Gazprom compared
with 4.9bcm sourced from the EU.  Fitch expects that in 2015 the
EU countries will take over as Naftogaz's main gas supplier.
Ukraine imports gas from EU through the so called "reverse flow"
scheme via Slovakia, Hungary and Poland.  Currently the reverse
flow capacity is around 58 million cubic meters per day.

Weak Financial Transparency

Naftogaz's financial transparency remains weak.  Naftogaz's 2012-
2013 IFRS financial statements are currently being audited and
are still unavailable.  The company publically discloses no
regular operational or strategic updates.  This level of
transparency is acceptable for the rating and taking into account
the selected rating approach (alignment with the parent).
However, any positive rating movement is likely to be constrained
if the transparency does not improve.

Upcoming Reorganization

Ukraine's government has committed to reform its energy sector
according to the EU Third Energy Package, which implies marked
liberalization and unbundling of transmission and distribution
functions from trading and production.  Naftogaz is currently
finalizing a plan to implement its reform strategy in
collaboration with the World Bank.  It is planned that the
Cabinet of Ministers will adopt this plan by the end of the 1Q15
and the new law will pass the Parliament by end-April 2015.
Fitch believes that Naftogaz is likely to remain as a legal
entity after a possible reorganization, and that its ratings
should not be immediately affected, as long as its links with the
state remain strong.


   -- The state continues to support Naftogaz through subsidies.
   -- Domestic gas tariff indexation in 2015 for households and
      heat generation companies by at least 50%.
   -- Natural gas transit volumes falling to 50bcm in 2015.
   -- Naftogaz's domestic loans falling due are mostly extended;
      Gazprombank's loan due 2019 is being repaid according to
      the schedule.
   -- USD/UAH 17 in 2015.


Future developments that may, individually or collectively, lead
to negative rating action include:

   -- Sovereign rating downgrade, resulting from intensification
      of political and/or economic stress, potentially leading to
      a default on government debt. Based on Fitch's publicly
      disclosed Sovereign Rating Review Calendar for 2015, Fitch
      expects to review its rating of Ukraine on 13 February

   -- Evidence of less state support.

Future developments that may, individually or collectively, lead
to positive rating action include:

   -- Sovereign rating upgrade, resulting from improvement in
      political stability, progress in implementing economic
      policy agenda agreed with the IMF and improvement in
      external liquidity.

   -- Positive free cash flow from rising domestic gas tariffs
      and improved receivables collections

   -- Greater financial transparency.


Weak Liquidity

Naftogaz's liquidity remains extremely weak and the company is
likely to default without state support.  At end-2014 its cash
balances stayed at around UAH2.1 billion (USD125 million)
compared to short-term debt of around UAH32 billion (USD1.9
billion).  Fitch expects that Naftogaz will continue to service
its USD1.7 billion Gazprombank loan due 2019.  Fitch also expects
that Ukraine's domestic banks will refinance Naftogaz's loans
falling due, as has been the case for the last several years.

U N I T E D   K I N G D O M

BANK: Makes First 20 Store Closures
Drapers reports that young fashion retailer Bank will close an
initial 20 stores, following its collapse into administration.

The first 10 shops, in Stockport, Bury, Wolverhampton, Doncaster,
Warrington, Edinburgh, Carlisle, Chester, Livingston and Cardiff,
will close on February 22, according to Drapers.   A further 10,
in Royal Leamington Spa, Dundee, Bristol, Wrexham, Middlesbrough,
Romford, Inverness, Macclesfield, Stevenage and Llanelli, will
close on March 1, the report relates.

Drapers notes that the remaining 64 Bank stores will continue to
trade, as administrators from Deloitte continue to search for a
buyer for the business.  Deloitte is looking into whether
employees from the 20 axed stores can be redeployed elsewhere,
the report discloses.

Originally, Deloitte said all 84 stores would stay open until a
buyer was found.

The report relays that several parties, including Little
Mistress, Bestseller, Quiz and Foot Asylum, have expressed an
interest in snapping up all or some of the collapsed retailer's

Deloitte and estate agent Savills, which is handling the sale of
Bank's property portfolio, declined to comment on whether any
deals have been signed.

Last month, 35 members of staff at Bank's head office in Bury
were made redundant, the report notes.

The report adds that the chain was sold by JD Sports to a
subsidiary of Hilco Capital at the end of November last year and
went into administration on January 5.

CHANTRY KITCHENS: Goes Into Administration
------------------------------------------ reports that Julian Pitts -- -- and Nick Reed -- -- of Begbies Traynor in Leeds were
appointed as joint administrators of well-established North
Yorkshire kitchen company Chantry Kitchens.

All 18 staff, including two directors, were made redundant prior
to the administration and the business has ceased trading while a
purchaser is sought, according to

Founded in 1993, the bespoke kitchen manufacturer and installer
has two showrooms located in Harrogate and Tockwith.
"Unfortunately, the business ran into problems when it failed to
generate sufficient orders going forward and encountered cash
flow difficulties," the report quoted joint administrator Julian
Pitts as saying.

"We have been marketing the business since our appointment and,
following discussions with several interested parties for the
sale of some of the business' assets, we anticipate concluding a
sale in the near future," Mr. Pitts added.

MARUSSIA F1: Justin King Linked to Buy-Out
Coventry Telegraph reports that the former Sainsburys' Chief
Executive Officer and Solihull native Justin King has been linked
to the buyout of Anglo-Russian Formula One team Marussia.

Mr. King, who was born in Dorridge and attended Tudor Grange
Comprehensive School, has been revealed to be one potential
investor taking part in a multimillion pound bid to rescue the
failing team - now renamed Manor Grand Prix, according to
Coventry Telegraph.

The report notes that the current identities of other investors
are not yet know, however it is thought that Mr. King will be
investing alongside Graeme Lowden, the team's chief executive,
and John Booth, the team's principal.

The report relays that an unidentified insider told Sky News:
"These are serious, heavyweight individuals. Their plan is to
revive a high-quality British racing ethic and brand-name."

The team gave notice to the high court in London last October
that they would be going into administration, the report adds.

MEIF RENEWABLE: Moody's Assigns Ba2 Corporate Family Rating
Moody's Investors Service has assigned a definitive Ba2 corporate
family rating (CFR) to MEIF Renewable Energy UK Plc (the Issuer
or MEIF Renewable Energy UK) and a Ba1-PD probability of default
rating (PDR). Concurrently, Moody's has assigned a definitive Ba2
rating to the GBP190 million Senior Secured Notes due 2020 (the
Notes) issued by MEIF Renewable Energy UK Plc. The outlook on all
ratings is stable.

The proceeds of the Notes were used to refinance project finance
indebtedness of the company's biomass and landfill gas power
generation subsidiaries; pay swap breakage costs and transaction
fees; and to fund a distribution of approximately GBP78 million
to the shareholder MEIF Lux Renewables SARL, a Luxembourg-based
holding company owned by the Macquarie European Infrastructure
Fund 1.

Ratings Rationale

The Ba2 CFR is constrained by (1) the group's small scale,
relative to rated utility and power generation peers, and asset
concentration risk, which will increase over time as the landfill
gas portfolio declines; (2) the high level of leverage (gross
debt to EBITDA of just under 4x), which will result from the
planned refinancing and (3) the limited visibility over how
equity and credit interests will be balanced in the coming years,
which could result in significant refinancing risk at the
maturity of the Notes.

It also reflects, as positives, (1) the fact that more than half
of group earnings are derived from stable and transparent
renewable energy subsidy mechanisms, controlled by the UK
Government; (2) a commercial contracting structure including fuel
procurement, access to landfill gas and sale of power and
associated benefits, which could dampen the impact of movements
in commodity prices on operating earnings; and (3) the group's
deleveraging potential, as demonstrated by strong historic levels
of free cash flow.

MEIF Renewable Energy UK Plc is the parent company of two
businesses, Energy Power Resources Limited (EPRL) and CLP
Envirogas Limited (CLP), which own and operate, respectively,
five biomass-fired power plants (which use poultry litter, straw
and meat and bone meal as fuels) and 68 landfill gas generating
engines across 25 sites in Great Britain and with a total
installed capacity of around 174MW. Of these facilities, the two
largest biomass plants at Thetford (38.5MW) and Ely (38MW)
generated nearly 40% of group EBITDA in the year to 31 March
2014. The rating agency considers that the group has very small
scale compared to peers rated under the Unregulated Utilities and
Unregulated Power Companies methodology and even compared with
its closed rated comparator, Infinis Energy Plc (Ba3 stable),
which had total generation capacity of 610MW as at the end of
March 2014.

Moody's considers that the group's stable earnings and strong
free cash flow generation in recent years and the relatively low
levels of maintenance capital expenditure required for the fleet
mean that it has the potential to deleverage significantly over
the life of the Notes. The rating agency expects the group to
continue to generate relatively stable earnings notwithstanding
the group's exposure to changes in power prices, given that close
to 50% of revenues are currently derived from subsidy mechanisms
including Renewables Obligation Certificates (ROCs), the value of
which are linked to the Retail Price Index (RPI). While the
group's assets are eligible to receive ROCs until 2027, it only
has contracts in place to sell them and the associated power
until 2020 and 2022. Moody's considers to be a credit positive
the fact that the group's principal counterparty, British Gas
Trading Limited, is one with strong credit quality (a subsidiary
of Centrica Plc, A3 negative).

However, the actual deleveraging profile remains uncertain given
the potential misalignment of equity and credit interests during
the life of the Notes. Moody's notes that the group is
beneficially owned by Macquarie European Infrastructure Fund 1,
which has recently extended its initial ten year life to 2016.
The rating agency considers it likely that the shareholder will
seek to maximize its return on investment during the life of the
Notes, in order to optimize the returns to investors in the Fund.
This is demonstrated by the refinancing, which will result in
almost GBP100 million of distributions being paid to the
shareholder in the year to 31 March 2015.

The small scale of MEIF Renewable Energy UK and its asset
concentration means that the group could be materially exposed to
a prolonged unforced outage at one of its principal generating
facilities; in this regard, Moody's notes that a number of the
biomass plants are approaching the end of their design lives.
This risk is also likely to increase over time as generation from
the existing mostly closed landfill gas portfolio declines. More
positively, the rating agency notes that management's
historically prudent approach to maintenance of the assets, if
continued, would partially mitigate the risk to earnings from
unplanned outages. Furthermore, the increasing contribution of
the biomass business to group earnings as the landfill gas
business declines should reduce exposure to the UK power price
given that the biomass assets earn a higher proportion of
revenues through subsidy than the landfill gas assets.

The terms of the Notes provide certain creditor protections in
the form of restrictions on additional indebtedness, subject to a
number of debt incurrence tests; a limitation on the payment of
dividends and other restricted payments; and a restriction on
permitted investments outside of the restricted financing group.
However, the level of carve-outs mean that the group's actual
future deleveraging profile and hence, refinancing risk at the
maturity of the Notes, remains uncertain.

The Ba2 rating on the Notes reflects the fact that they will
benefit from first-ranking security over the shares in the Issuer
and the assets of the operating companies as well as guarantee
from substantially all of the operating companies. It also
reflects the fact that the Notes will effectively be subordinated
to (1) a GBP20 million super senior revolving credit facility and
(2) up to a maximum of GBP10 million of commodity hedging
liabilities, which would have priority of claim over the shared
collateral in an enforcement scenario.

The Notes will also rank senior to a shareholder loan made to the
group by MEIF Lux Renewables SARL of approximately GBP109
million. The rating agency considers that the shareholder loan
meets the conditions to be treated as 100% equity as set out in
Moody's 2013 publication "Debt and Equity Treatment for Hybrid
Instruments of Speculative-Grade Nonfinancial Companies".

The Ba2 rating of the Notes and the Ba1-PD PDR reflect Moody's
assumption of a 65% family Loss Given Default ("LGD"). The 65%
LGD assumption reflects the group's debt capital structure, which
will primarily consist of the Notes to be issued. The 65% LGD
assumption is line with Moody's general approach to all-bond
transactions. Accordingly, Moody's LGD estimate for the Notes is
LGD 5. Due to the high LGD assumption, the PDR is assessed at
Ba1-PD, one notch higher than the CFR assigned to the group.

Rating Outlook

The rating outlook is stable, reflecting the rating agency's base
case expectation that the business will de-lever over the life of
the Notes, such that the group maintains an FFO to gross debt
ratio persistently higher than 15% and RCF to gross debt above

What Could Change the Rating UP/DOWN

Given the high initial level of leverage (nearly 4x on a net debt
to EBITDA basis) and the uncertainty around the likely
deleveraging profile, Moody's considers that upward pressure on
the ratings is unlikely to arise in the next two years.

Conversely, downward pressure could arise if the group were not
to deleverage as the value of the asset portfolio declines. This
could result from (1) a material deterioration in the technical
availability of the generation portfolio or the landfill gas
yield; (2) wholesale power prices settling at a level close to
GBP40/ megawatt hour or below, which would likely cause the
group's leverage (measured on a net debt to EBITDA basis) above
4x; (3) the payment of equity distributions at a level
inconsistent with the earnings trend of the business; or (4) a
currently unforeseen change to the renewable energy subsidy
regime in the UK, which has a material adverse impact on the
value of the subsidies received.

Principal Methodologies

The principal methodology used in this rating was Unregulated
Utilities and Unregulated Power Companies published in October
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.


* AlixPartners Announces Managing Director Promotions
AlixPartners has announced managing director promotions.

AlixPartners has promoted the following individuals:

Andrew Bergbaum
Enterprise Improvement, London

John Bonno
Enterprise Improvement, Detroit

Giacomo Cantu
Enterprise Improvement, Chicago

Gaurav Chhabra
Enterprise Improvement, Boston

Thomas Clarke
Enterprise Improvement, New York

Jonathan Greenway
Enterprise Improvement, San Francisco

Koichi Kawaguchi
Enterprise Improvement, Tokyo

Michele Mauri
Enterprise Improvement, Milan

Renaud Montupet
Turnaround & Restructuring Services, Paris

Deborah Rieger-Paganis
Turnaround & Restructuring Services, New York

Thomas Studebaker
Turnaround & Restructuring Services, New York

Michael Wabnitz
Financial Advisory Services, Munich

Richard Wallace
Information Management Services, Chicago

David Wireman
Enterprise Improvement, Dallas

                       About AlixPartners

AlixPartners is a global business advisory firm of results-
oriented professionals who specialize in creating value and
restoring performance at every stage of the business life cycle.

* BOOK REVIEW: The Sorcerer's Apprentice - Medical Miracles
Author: Sallie Tisdale
Publisher: BeardBooks
Softcover: 270 pages
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Review by Henry Berry
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An earlier edition of "The Sorcerer's Apprentice" won an American
Health Book Award in 1986. The book has been recognized as an
outstanding book on popular science. Tisdale brings to her
subject of the wide and engrossing field of health and illness
the perspective, as well as the special sympathies and
sensitivities, of a registered nurse. She is an exceptionally
skilled writer. Again and again, her descriptions of ill
individuals and images of illnesses such as cancer and meningitis
make a lasting impression.

Tisdale accomplishes the tricky business of bringing the reader
to an understanding of what persons experience when they are ill;
and in doing this, to understand more about the nature of illness
as well. Her style and aim as a writer are like that of a medical
or science journalist for leading major newspaper, say the "New
York Times" or "Los Angeles Times." To this informative, readable
style is added the probing interest and concern of the
philosopher trying to shed some light on one of the central and
most unsettling aspects of human existence. In this insightful,
illuminating, probing exploration of the mystery of illness,
Tisdale also outlines the limits of the effectiveness of
treatments and cures, even with modern medicine's store of
technology and drugs. These are often called "miracles" of modern
medicine. But from this author's perspective, with the most
serious, life-threatening, illnesses, doctors and other
healthcare professionals are like sorcerer's trying to work magic
on them. They hope to bring improvement, but can never be sure
what they do will bring it about. Tisdale's intent is not to
debunk modern medicine, belittle its resources and ways, or
suggest that the medical profession holds out false hopes. Her
intent is do report on the mystery of serious illness as she has
witnessed it and from this, imagined what it is like in her
varied work as a registered nurse. She also writes from her own
experiences in being chronically ill when she was younger and the
pain and surgery going with this.

She writes, "I want to get at the reasons for the strange state
of amnesia we in the health professions find ourselves in. I want
to find clues to my weird experiences, try to sense the nature of
being sick." The amnesia of health professionals is their state
of mind from the demands placed on them all the time by patients,
employers, and society, as well as themselves, to cure illness,
to save lives, to make sick people feel better. Doctors,
surgeons, nurses, and other health-care professionals become
primarily technicians applying the wonders of modern medicine.
Because of the volume of patients, they do not get to spend much
time with any one or a few of them. It's all they can do to apply
the prescribed treatment, apply more of it if it doesn't work the
first time, and try something else if this treatment doesn't seem
to be effective. Added to this is keeping up with the new medical
studies and treatments. But Tisdale stepped out of this
problemsolving outlook, can-do, perfectionist mentality by opting
to spend most of her time in nursing homes, where she would be
among old persons she would see regularly, away from the high-
charged atmosphere of a hospital with its "many medical students,
technicians, administrators, and insurance review artists." To
stay on her "medical toes," she balanced this with working
occasional shifts in a nearby hospital. In her hospital work, she
worked in a neonatal intensive care unit (NICU), intensive care
unit (ICU), a burn center, and in a surgery room. From this
combination of work with the infirm, ill, and the latest medical
technology and procedures among highly-skilled professionals,
Tisdale learned that "being sick is the strangest of states."
This is not the lesson nearly all other health-care workers come
away with. For them, sick persons are like something that has to
be "fixed." They're focused on the practical, physical matter of
treating a malady. Unlike this author, they're not focused
consciously on the nature of pain and what the patient is
experiencing. The pragmatic, results-oriented medical profession
is focused on the effects of treatment. Tisdale brings into the
picture of health care and seriously-ill patients all of what the
medical profession in its amnesia, as she called it, overlooks.

Simply in describing what she observes, Tisdale leads those in
the medical profession as well as other interested readers to see
what they normally overlook, what they normally do not see in the
business and pressures of their work. She describes the beginning
of a hip-replacement operation, the surgeon "takes the scalpel
and cuts -- the top of the hip to a third of the way down the
thigh -- and cuts again through the globular yellow fat, and
deeper. The resident follows with a cautery, holding tiny
spraying blood vessels and burning them shut with an electric
current. One small, throbbing arteriole escapes, and his glasses
and cheek are splattered." One learns more about what is actually
going on in an operation from this and following passages than
from seeing one of those glimpses of operations commonly shown on
TV. The author explains the illness of meningitis, "The brain
becomes swollen with blood and tissue fluid, its entire surface
layered with pus . . . The pressure in the skull increases until
the winding convolutions of the brain are flattened out . . . The
spreading infection and pressure from the growing turbulent ocean
sitting on top of the brain cause permanent weakness and
paralysis, blindness, deafness . . . ." This dramatic depiction
of meningitis brings together medical facts, symptoms, and
effects on the patient. Tisdale does this repeatedly to present
illness and the persons whose lives revolve around it from
patients and relatives to doctors and nurses in a light readers
could never imagine, even those who are immersed in this world.

Tisdale's main point is that the miracles of modern medicine do
not unquestionably end the miseries of illness, or even
unquestionably alleviate them. As much as they bring some relief
to ill individuals and sometimes cure illness, in many cases they
bring on other kinds of pains and sorrows. Tisdale reminds
readers that the mystery of illness does, and always will, elude
the miracle of medical technology, drugs, and practices. Part of
the mystery of the paradoxes of treatment and the elusiveness of
restored health for ill persons she focuses on is "simply the
mystery of illness. Erosion, obviously, is natural. Our bodies
are essentially entropic." This is what many persons, both among
the public and medical professionals, tend to forget. "The
Sorcerer's Apprentice" serves as a reminder that the faith and
hope placed in modern medicine need to be balanced with an
awareness of the mystery of illness which will always be a part
of human life.


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-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez,
Joy A. Agravante, Ivy B. Magdadaro, and Peter A. Chapman,

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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or balance thereof are US$25 each.  For subscription information,
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