TCREUR_Public/150306.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, March 6, 2015, Vol. 16, No. 46



HYPO ALPE-ADRIA: Austria Wants Heta Creditors to Accept Losses


PETROL HOLDING: Stara Zagora District Court Seizes 88.6% Shares


BUDA-CASH: Central Revokes License, Initiates Liquidation


AWAS AVIATION: S&P Affirms 'BB+' CCR & Revises Outlook to Neg.


SILENUS LTD: Moody's Raises Rating on EUR46MM Cl. D Notes to B3


PAULS STRADINS: Facing Insolvency; Unlikely to Repay Bank Loan


NORWEGIAN AIR: Bankruptcy Likely if Pilot Strike Continues


UBOAT LINE: Files for Liquidation
* POLAND: Records Total Corporate Bankruptcies in Feb., KUKE Says


* ROMANIA: Number of Corporate Insolvencies Drops 50% in January


ELEMENT LEASING: S&P Affirms 'B/C' Counterparty Rating
RENAISSANCE FINANCIAL: Fitch Lowers IDR to 'B-'; Outlook Negative
RENAISSANCE FINANCIAL: S&P Cuts Counterparty Credit Rating to B-


RURAL HIPOTECARIO IX: Moody's Cuts Rating on Class B Notes to B1


BRAVIDA HOLDING: S&P Affirms 'B' CCR; Outlook Stable

U N I T E D   K I N G D O M

AFREN PLC: Fitch Lowers IDR to 'RD' Following USD15MM Default
BOOKABLE HOLIDAYS: In Liquidation, Owes Creditors GBP1.12MM
CATHOLIC CHURCH: Fears Liquidation Over Failure to Meet Deadline
HIGHTEX GROUP: Commences Insolvency Process
NARTEK: In Liquidation, Owes Over GBP2 Million


* BOOK REVIEW: Lost Prophets -- An Insider's History



HYPO ALPE-ADRIA: Austria Wants Heta Creditors to Accept Losses
Boris Groendahl and Alexander Weber at Bloomberg News report that
the Austrian government will try to convince Heta Asset
Resolution AG's creditors to accept voluntary losses as it winds
down the bad bank of failed Hypo Alpe-Adria-Bank International AG
under new European Union rules.

Chancellor Werner Faymann said on March 3 that Austria's
financial regulator, which is running Heta, will seek talks with
creditors on the debt reduction, which could take place by way of
a discounted bond buyback, Bloomberg relates.

According to Bloomberg, a buyback or agreed debt cuts with
investors would help to take the Carinthia provincial government,
Heta's former owner, off the hook for EUR10.2 billion (US$11.4
billion) of guarantees.

"Because we're proceeding according to the new bank resolution
law, which has only been possible since January, we now have the
time to start talks with the bondholders, such as at which price
the bonds could be bought back," Bloomberg  quotes Mr. Faymann as
saying.  "We're trying to get out of the problem of the
Carinthian guarantees, and I hope we'll succeed."

Austria paved the way for imposing losses on Heta's bondholders
when it ruled out further support on March 1, Bloomberg relates.
Using powers set out in EU and Austrian bank resolution laws, the
Finanzmarktaufsicht regulator ordered a 15-month debt moratorium
while plans resolution of Heta's EUR18 billion of assets,
Bloomberg relays.

Helmut Ettl, co-head of the Financial Market Authority, said if
the FMA bails in bondholders, forcing them to share Heta's
losses, creditors could claim the shortfall against Carinthia,
Bloomberg notes.  If the FMA decides against resolution, it could
allow Heta to become insolvent, triggering the Carinthian
guarantees in full, Bloomberg states.

                       About Hypo Alpe-Adria

Hypo Alpe-Adria International AG is a subsidiary of BayernLB.  It
is active in banking and leasing.  In banking, HGAA serves both
corporate and retail customers and offers services ranging from
traditional lending through savings and deposits to complex
investment products and asset management services.

Hypo Alpe received EUR1.75 billion in aid in emergency
capital from the Austrian government.  European Union Competition
Commissioner Joaquin Almunia said in March 2013 that Hypo Alpe
faced possible closure for failing to adequately restructure.
The European Commission approved Hypo's recapitalization in
December 2013, but made it conditional on the management
presenting a thorough plan to overhaul the group.  The Austrian
finance ministry, which effectively runs Hypo Alpe, submitted a
restructuring plan to the Commission on Feb. 5, 2013.  On Sept.
3, 2013, the Commission cleared Hypo Alpe's restructuring plan,
which includes the sale of the bank's Austrian unit and Balkans
banking network and the winding-down of non-viable parts.  It
also approved additional aid to wind down the bank.

As reported in the Troubled Company Reporter-Europe on Nov. 3,
2014, The Wall Street Journal said Austria's nationalized lender
Hypo Alpe-Adria-Bank International AG said on Oct. 30 it has
split itself between a wind-down unit, called Heta Asset
Resolution GmbH, and its southeastern European network of banks.

The split is part of the lender's restructuring plan approved by
the European Commission, the Journal disclosed.  According to the
Journal, under the plan, the Austrian government -- Hypo Alpe-
Adria's current owner -- must sell off all of the bank's assets
or transfer them into a wind-down unit by mid-2015.


PETROL HOLDING: Stara Zagora District Court Seizes 88.6% Shares
FFHB, citing Capital Daily, reports that Stara Zagora District
Court seized 88.6% of Petrol shares. These are the shares owned
by Alpha Capital (28.85%), Yulinor(23.1%), Correct Pharm (18.3%)
and VIP Properties (18.3%), the report says. This is a
preliminary security measure to preserve the property of the
Petrol Holding and Naftex Petrol in connection with the ongoing
bankruptcy procedure of the Petrol Holding, according to FFHB.

FFHB relates that the measure was requested by Petrol Holding as
a debtor and New Co Zagora as a creditor.

Alpha Capital acquired 47.5% stake in Petrol in December last
year from Petrol Holding, a deal which was later appealed by
Petrol Holding as the holding claimed that it was based on false
documents and it was in breach of the company's articles of
association, FFHB recalls. However, deals concluded on BSE-Sofia
are irrevocable.

FFHB relates that later the same month, Alpha Capital transferred
18.3% to Correct Pharm. Yulinor and VIP Properties acquired their
stakes in January from Naftex Petrol, a subsidiary of Petrol,
which was most probably trying to evade the invalidation of its
stake in Petrol by selling them to other parties, the report

The four major shareholders of Petrol are said to be related to
the majority owner of Corporate Commercial Bank Tsvetan Vasilev,
FFHB discloses.


BUDA-CASH: Central Revokes License, Initiates Liquidation
MTI reports that the National Bank of Hungary on March 4 revoked
the license of brokerage Buda-Cash and initiated its liquidation.

Shortfalls revealed by the central bank and data compiled by an
oversight commissioner show the brokerage cannot settle a large
amount with its clients, MTI relates.

The clients will be compensated from the Investor Protection Fund
(Beva), MTI discloses.

The NBH suspended the activities of Buda-Cash last week and
initiated a criminal procedure, MTI relays.  It also revoked the
licenses of DRB Bank group members, which have close ties to
Buda-Cash, MTI notes.  According to MTI, the scandal is thought
to involve some HUF100 billion.


AWAS AVIATION: S&P Affirms 'BB+' CCR & Revises Outlook to Neg.
Standard & Poor's Ratings Services said it affirmed all ratings,
including the 'BB+' corporate credit rating, on Dublin-based
aircraft lessor AWAS Aviation Capital Ltd.  At the same time, S&P
revised its rating outlook on the company to negative from

"We base our outlook revision to negative from stable on AWAS'
reduced fleet size after the sale of 90 aircraft, the somewhat
older age of the remaining fleet, which will generate reduced
earnings and cash flow, and a potential weakening of the
company's financial risk profile, depending on how it uses
proceeds from the sale," said Standard & Poor's credit analyst
Tatiana Kleiman.

S&P expects the sale of 90 aircraft for US$4 billion to close
within 12 months, and it is subject to customary closing
conditions. After the sale, AWAS will still be left with a
portfolio of more than 200 aircraft.  The 90 aircraft that AWAS
is selling are all fairly new, which will leave AWAS with a
somewhat older fleet. After receiving significant number of new
aircraft over the last few years, AWAS has no more committed new
orders.  Any growth of its fleet would therefore likely come
through sale/leasebacks and secondary market acquisitions.  S&P
continues to characterize AWAS' business risk profile as
"satisfactory" under our criteria.

The rating outlook is negative.  S&P expects earnings and cash
flow to decline, which could result in weaker credit measures,
depending on how AWAS deploys the sales proceeds.

S&P could lower the ratings if AWAS used proceeds from the asset
sales to fund a large dividend to its owners, causing FFO to debt
to decline to about 7%.

S&P does not foresee an upgrade, given the company's ownership
structure.  Private equity firm Terra Firma and CPPIB own AWAS,
and S&P typically do not rate transportation equipment lessors
owned by private equity higher than 'BB+' because of financial
policy concerns.


SILENUS LTD: Moody's Raises Rating on EUR46MM Cl. D Notes to B3
Moody's Investors Service upgraded the Classes A, B, C and D
Notes and confirms the Class X Notes of EMEA CMBS Notes issued by
Silenus (European Loan Conduit No. 25) Limited.

Moody's rating actions are as follows:

  -- EUR1035 million A Notes, Upgraded to Aa2 (sf); previously on
     Jan 28, 2015 A1 (sf) Placed Under Review for Possible

  -- EUR60 million B Notes, Upgraded to Aa2 (sf); previously on
     Jan 28, 2015 Ba3 (sf) Placed Under Review for Possible

  -- EUR63 million C Notes, Upgraded to Baa1 (sf); previously on
     Jan 28, 2015 Caa1 (sf) Placed Under Review for Possible

  -- EUR46 million D Notes, Upgraded to B3 (sf); previously on
     Jan 28, 2015 Ca (sf) Placed Under Review for Possible

  -- EUR0.05 million X Notes, Confirmed at B1 (sf); previously on
     Jan 28, 2015 B1 (sf) Placed Under Review for Possible

Moody's does not rate the Class E, F and G Notes.

The ratings of the Classes A, B, C and D Notes are upgraded to
reflect the recent positive developments on the pool with the
repayment of the Eurocastle Retail and the Metropolis Shopping
Centre loans.  While the repayment proceeds of the Metropolis
Loan were allocated sequentially to the notes on the February
2015 interest payment date ("IPD"), the repayment proceeds of the
Eurocastle Loan will be allocated on the next IPD in May 2015.

Due to the sequential allocation of the Eurocastle repayment
proceeds, the Class A Notes is expected to be repaid on the May
2015 IPD, at which point Moody's will withdraw its rating.  The
Class B Notes will be partially repaid from the proceeds as well,
bringing the Moody's note to value to approximately 16%.  The
ratings of the Class A and B notes are capped at Moody's local
country ceiling for Italy.

Including the impact of an additional three loan repayments since
Moody's last downgrade action in April 2013, the credit
enhancements ("CE") on the Classes B, C and D Notes have
increased significantly from 26% to 85%, from 16% to 49% and from
7% to 24%, respectively.  Additionally, the recent re-gearing of
leases on properties securing the Orazio loan, (78% of the pool
following repayments) are credit positive.  The positive asset
management results increases the probability that the loan will
be worked out ahead of the notes' legal final maturity in May

The rating on the Class X Notes is confirmed because the current
rating is commensurate with the updated risk assessment.  The
Class X Notes reference the underlying loan pool.  As such, the
key rating parameters that influence the expected loss on the
referenced loan pool also influence the ratings on the Class X
Notes.  The rating of the Class X Notes was based on the
methodology described in the Cross Sector methodology "Moody's
Approach to Rating Structured Finance Interest-Only Securities"
published in February 2012.

Moody's base expected loss for the pool is in the range of 10%-20
% of the current balance.  Moody's derives this loss expectation
from the analysis of the default probability of the securitized
loans (both during the term and at maturity) and its value
assessment of the collateral.

Realised losses have increased to 0.1% from 0.0% of the original
securitized balance since the last rating action.

The principal methodology used in this rating was Moody's
Approach to Rating EMEA CMBS Transactions published in December

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

Main factors or circumstances that could lead to a downgrade of
the ratings are (i) a further decline in the property values
backing the underlying loans; (ii) an increase in default
probability relating to the Nextra Loan; (iii) lack of progress
or visibility on the work out of the Orazio Loan; (iv) given the
96% exposure to Italy, a significant increase in sovereign risk.

Main factors or circumstances that could lead to an upgrade of
the rating are (i) a full repayment of the Nextra Loan on its
maturity date in combination with good progress on the work-out
of the Orazio Loan and (ii) an increase in the property values
backing the remaining underlying loans.

As of the February 2015 interest payment date ("IPD"), the
transaction balance has declined by 75% to EUR313.6 million
(excludes the proceeds from the Eurocastle Retail Loan) from
EUR1,238.5 million at closing in 2007 due to the pay off of 13
loans (excludes the Eurocastle Retail Loan) originally in the
pool. The notes are currently secured by the three remaining
loans which are secured by first-ranking legal mortgages over 49
mostly retail and office properties. The pool's geographic
concentration is now Italy (96% of the assets are located in
Italy) while the remaining asset is located in Germany (4%).
Moody's uses a variation of the Herfindahl Index, in which a
higher number represents greater diversity, to measure the
diversity of loan size. Large multi-borrower transactions
typically have a Herf of less than 10 with an average of around
5. This pool has a Herf of 1.4, reflecting a high concentration
due to the dominant Orazio Loan.

Two of the three remaining loans are in special servicing: Orazio
and Aprirose Munich-Thun loans, together 82% of the pool by
securitised loan balance. We expect no further recoveries from
the Aprirose Munich-Thun loan (EUR6.4 million securitized

Summary of Moody's Loan Assumptions:

Below are Moody's key assumptions for the three remaining loans.

(1) Orazio loan - LTV: 136% (Whole)/ 110% (A-Loan); Defaulted;
Expected Loss 20%-30%.

The largest loan in the pool, Orazio (78% of the securitized
pool) is secured by a portfolio of office and retail properties
in Italy. The loan failed to repay at its maturity date in
November 2012 and is currently in special servicing. The loan is
also in breach of the LTV covenant and the borrower has been put
into liquidation. The portfolio contains three office properties
of diverse quality located in Milan, Rome (both single tenanted)
and Naples that range from good to very good quality and a
portfolio of 44 secondary quality retail properties located in
Northern Italy let to Penny Market (the largest tenant,
representing 50% of the total rent for this loan).

A number of leases were recently renewed in the Orazio portfolio,
which is overall credit positive for the repayment of the loan
before legal final maturity of the notes: Penny Market extended
most of its leases for a period of nine plus nine years at 9.5%
discount to current rent; Deloitte & Touche, the single occupier
of the property in Rome, entered into a new lease for six plus
six years at 10% discount to current rent; and the government
tenant in the Naples property did not vacate in June 2014. The
single tenant of the Rome asset has exercised its break option
with a high probability of vacating the property next year, as
the tenant is reportedly constructing a new headquarters.
However, the office property has a very good location in the
historical center of Milan and should attract both tenant and
investor interest.

Overall, the stabilization of the assets (with the exception of
the Milan office) together with the increased investor interest
in Italy would facilitate their timely sale. The cash sweep in
place has additionally de-levered the loan.

(2) Nextra loan - LTV: 86% (Whole)/ 86% (A-Loan); Total Default
Probability Medium/High; Expected Loss 0%-10%.

The now second largest loan in the pool, Nextra (18% of the
securitised pool) is secured by three office properties in Milan
and by a holiday resort in Sardinia. The loan is current and has
its extended maturity in May 2016. The current vacancy rate of
the portfolio is 42% due to the recent vacation of the sole
tenant in one of the office properties in Milan. Despite the two
vacant properties and the terminated lease agreement of the
resort's tenant, the loan continues to benefit from a strong
interest coverage.

(3) Aprirose loan - LTV: N/A (Whole)/ N/A (A-Loan); Defaulted;
Expected Loss 90%-100%.

The smallest loan in the pool, Aprirose (4% of the securitized
pool) is secured by one remaining retail box asset located in
Germany. On the last IPD the received net operating income was
insufficient to cover legal expenses and default interest. The
single asset is let to a single tenant who terminated its lease
effective 31 October 2015. Due to the challenges regarding a sale
of the soon vacant property, Moody's has assumed a recovery rate
of less than 10% on this loan.


PAULS STRADINS: Facing Insolvency; Unlikely to Repay Bank Loan
The Baltic Course, citing LETA, reports that Health Ministry
State Secretary in Latvia Solvita Zvidrina said that the Pauls
Stradins Clinical University Hospital is showing signs of
insolvency, commenting on the hefty loan (EUR66.02 million taken
out in 2007) that it obviously will not be able to pay back.

According to the report, Ms. Zvidrina explained that after the
hospital was issued the loan, it deposited EUR6 million in an
account in now-defunct Latvijas Krajbanka. When the bank "went
under', so did the six million. "Nonetheless, the 'lost money'
will have to be paid back," the report quotes Ms. Zvidrina as

Also, the fate of the new wing under construction is unclear, she
added, as it could create additional losses for the hospital, the
report relates.

In general, the Ministry of Health invites the government to
decide on the payment of state-guaranteed loans for 11 Latvian
hospitals, according to The Baltic Course.

Since 2002, the state guaranteed loans for 11 Latvian hospitals
totaling more than EUR200 million, of which they will have to
return another EUR182 million, the report notes.


NORWEGIAN AIR: Bankruptcy Likely if Pilot Strike Continues
Richard Milne at The Financial Times reports that Norwegian Air
Shuttle is facing one of its biggest crises after a strike by
pilots grounded all of its domestic flights in Norway, Sweden and

About 35,000 passengers could not fly with Europe's third biggest
low-cost airline on March 4 after 650 pilots went on strike in a
pay dispute, the FT relays.

The carrier, which made its first loss in eight years in 2014, is
vulnerable as it tries to build a long-haul business offering
flights from Europe to the US or Asia, the FT discloses.

According to the FT, Frode Steen, a professor at NHH business
school in Bergen, said the dispute was an almost automatic
consequence of Norwegian attempting to run two business models
simultaneously: a Scandinavian-based business targeting SAS, the
local flag carrier, and a more typical low-cost operation
centered on other European countries.

The atmosphere has been soured by media reports the airline could
bankrupt Norwegian Air Norway and then rehire about two-thirds of
the pilots, the FT relays.

Bjorn Kjos, Norwegian's chief executive, denied this had been
discussed but refused to rule out a possible bankruptcy if the
dispute continued, the FT notes.  He said pilots had been
presented with another proposal on March 3 and that Norwegian had
leased some aircraft on March 4 for certain European flights, the
FT relates.

Norwegian Air Shuttle ASA, trading as Norwegian, is the third
largest low-cost carrier in Europe, the second-largest airline in
Scandinavia, and the ninth-largest airline in Europe in terms of
passenger numbers.


UBOAT LINE: Files for Liquidation
Reuters reports that Uboat Line said it filed a liquidation
bankruptcy motion to the regional court in Cracow, Poland due to
being unable to pay down its credits.

* POLAND: Records Total Corporate Bankruptcies in Feb., KUKE Says
Wojciech Rylukowski at Poland AM, citing data from the Export
Credit Insurance Corporation (KUKE), reports that there were 58
bankruptcies recorded in Poland in February 2015.

According to Poland AM, the figure was 10.8% lower than the one
recorded in February 2014 and 1.7% lower than in January.


* ROMANIA: Number of Corporate Insolvencies Drops 50% in January
The Diplomat reports that number of companies which have declared
insolvent reduced by half in January this year and reached 930
files, from a previous 2054, according to data of the National

The Diplomat relates that the decreasing trend is due to the
changes in the legislation, meant to discourage the insolvency
demands.  According to the report, one change states that the
administrators found responsible for the insolvency cannot fill a
position in the administration board for a certain period of
time. They also can answer in the penal court for the company
state, the report notes.

In 2013, the decrease rate of insolvencies was of 23 per cent,
while in the last six months, once the new law is in place, the
decrease rate climbed to 50 per cent, from 15,000 files in second
quarter of 2013 to 7,500 in second quarter of 2014, the report

The largest insolvency rate has been declared in Bucharest,
Constanta, Bihor, the Diplomat reports. The most problematic
sectors are trade, constructions and industry, the report adds.


ELEMENT LEASING: S&P Affirms 'B/C' Counterparty Rating
Standard & Poor's Ratings Services said that it has taken these
rating actions on four Russian nonbank financial institutions

   -- Affirmed its 'BB/B' long- and short-term counterparty
      credit ratings and 'ruAA' Russia national scale ratings on
      TENEX-Service.  The outlook remains negative.

   -- Lowered its long-term counterparty credit rating and Russia
      national scale rating on State Transport Leasing Co. OJSC
      to 'B+/ruA+' from 'BB-/ruAA-' and affirmed the 'B'
      short-term counterparty credit rating.  The outlook is

   -- Affirmed its 'B/C' long- and short-term counterparty credit
      ratings on National Factoring Co.  The outlook was revised
      to negative from stable.  The Russia national scale rating
      was lowered to 'ruBBB+' from 'ruA-'.

   -- Affirmed its 'B/C' long- and short-term counterparty credit
      ratings and 'ruBBB+' Russia national scale rating on
      Element Leasing LLC.  The outlook was revised to negative
      from stable.

In S&P's view, the economic prospects in Russia are likely to
remain significantly weaker over the next couple of years than
S&P had previously anticipated.  S&P expects economic decline in
Russia in 2015 and a prolonged period of slow growth at best.
This will undermine the creditworthiness of corporate clients of
leasing and factoring companies in Russia.  S&P therefore
believes that credit costs will be high over next couple of years
and margins and profitability of NBFIs will be depressed.

S&P believes that disrupted external and internal capital markets
and funding constraints S&P observes across Russian banks are
increasing industry risks for NBFIs.  As Russian banks
principally provide the funding base for Russian NBFIs, S&P
expects NBFIs to face funding constraints in 2015-2016, which is
likely to limit new business growth in the sector.

"Therefore, we have revised our anchor -- our starting point for
assigning a rating -- for finance companies operating in Russia
to 'b' from 'b+', which remains two notches below the Russian
bank anchor.  The two notches reflect our view of Russian NBFIs'
higher industry risk than banks. This is mainly because: (i)
NBFIs are largely unregulated with no prudential requirements;
(ii) competition is higher in the NBFI sector compared with the
banking sector, which negatively affects margins; and (iii) NBFIs
do not have direct access to central bank funding," S&P said.


The affirmation reflects TENEX-Service's "highly strategic"
status as a subsidiary of AtomEnergoProm under S&P's criteria, in
light of its captive-like business model within the group and its
government-related status as the only leasing company for
nuclear-related equipment.

The negative outlook mirrors that on the parent, AtomEnergoProm.
S&P believes that, due to its group status, TENEX-Service
receives extraordinary government support via AtomEnergoProm, and
benefits from more favorable funding, from lower competitive
risk, and a de facto monopoly position on the nuclear equipment
market (the entity's monopoly status is guaranteed by
Presidential Act No. 556).  Therefore, S&P has added one notch of
entity-specific anchor adjustment, as its criteria define these
terms.  As such, S&P has maintained its assessment of TENEX-
Service's stand-alone credit profile (SACP) at 'b'.


The downgrade reflects S&P's concerns that the deteriorating
economic environment in Russia may intensify pressure on State
Transport Leasing Co. (STLC)'s financial fundamentals, especially
its capital buffer and earnings capacity.  Although pressure on
the company's capital base has been partly compensated by a
capital increase of Russian ruble (RUB)4.9 billion (US$87 million
at the exchange rate on Dec. 31, 2014), in S&P's opinion, STLC,
like the wider sector, remains vulnerable to challenging domestic
operating conditions.  Therefore, following the revision of S&P's
anchor for Russian NBFIs, S&P has revised downward its assessment
of STLC's SACP to 'b' from 'b+'.  The Russian government owns
100% of STLC through the Ministry of Transport.  S&P's long-term
rating on STLC continues to incorporate a one-notch uplift from
the company's 'b' SACP to reflect S&P's opinion of a "moderate"
likelihood of timely and sufficient extraordinary government

The stable outlook reflects S&P's view that STLC will be able to
cushion further deterioration of the economic environment in
Russia, maintaining its current solvency levels.


The affirmation of the 'B/C' ratings reflects S&P's opinion that
National Factoring Co. (NFC) may be better positioned to
withstand the expected deterioration of the Russian economy, in
particular because of the very short-term nature of its portfolio
of factoring advances, conservative underwriting standards, and
higher-than-average granularity of exposures.  S&P also notes
that NFC insures its largest debtors on a nonrecourse factoring
with a large international insurance company, which S&P thinks
improves its recovery prospects.  S&P has therefore revised NFC's
risk position to "strong" from "adequate."  As such, S&P
maintains its assessment of NFC's SACP at 'b'.

The negative outlook reflects rising economic and industry risks
for Russian financial institutions.  In particular S&P notes
that, along with the deterioration of the interbank market
conditions, NFC's funding profile may come under pressure in the
next 12-18 months.  This is why S&P has lowered the Russia
national scale rating to 'ruBBB+' from 'ruA-'.


The affirmation reflects S&P's expectation that Element Leasing
will be able to cushion the impact on its credit standing of the
higher credit losses and weaker profitability S&P anticipates due
to the deteriorating economic conditions in Russia.  In S&P's
view, Element Leasing has a good track record and operating
efficiency, making it more resilient than peers in the
deteriorating operating environment.  Moreover, S&P expects it to
benefit from ongoing support from its sister companies, Bank
Soyuz and Ingosstrakh.  Therefore, S&P has added one notch of
peer adjustment, as its criteria define the term.  As such, S&P
has maintained its assessment of Element Leasing's SACP at 'b'.

The negative outlook reflects the increasing challenges Element
Leasing could face as a result of a deteriorating operating
environment that will put pressure on liquidity and
capitalization via increased credit risks.

Outlook Action; Ratings Affirmed

                                To               From
Element Leasing LLC
Counterparty Credit Rating      B/Negative/C     B/Stable/C
Russia National Scale          ruBBB+/--/--     ruBBB+/--/--

Outlook Action; Ratings Affirmed; Downgraded

National Factoring Co.
Counterparty Credit Rating      B/Negative/C     B/Stable/C
Russia National Scale          ruBBB+/--/--     ruA-/--/--

State Transport Leasing Co. OJSC
Counterparty Credit Rating      B+/Stable/B      BB-/Negative/B
Russia National Scale          ruA+/--/--       ruAA-/--/--

Ratings Affirmed
Counterparty Credit Rating      BB/Negative/B
Russia National Scale          ruAA/--/--

                              Element   National   Leasing
                              Leasing   Factoring  Co.    TENEX-
                              LLC       Co.        OJSC   Service

Long-term ICR                  B         B          B+         BB
Entity-specific anchor         b         b+         b          b+
Business position        Moderate  Moderate   Adequate   Moderate
Capital, leverage,
& earnings               Moderate  Adequate   Moderate   Adequate
Risk position            Adequate  Strong     Moderate   Adequate
Funding and liquidity          0         -1         0          0
Comparable ratings adjustment  1          0         1          0
SACP                           b          b         b          b
External influence             0          0         1          3

ICR--Issuer credit rating.

RENAISSANCE FINANCIAL: Fitch Lowers IDR to 'B-'; Outlook Negative
Fitch Ratings has downgraded Renaissance Financial Holdings
Limited's (RFHL, the holding company of the Russia-headquartered
investment banking group known as RenCap) Long-term Issuer
Default Rating (IDR) to 'B-' from 'B'.  The Outlook is Negative.


The downgrade was driven by the more challenging Russian
operating environment, which is likely to exert pressure on
RFHL's volumes, performance and business development.  Russia
remains RFHL's key market, accounting for more than 70% of its
revenues.  Prospects for Russia's economy and financial markets
have deteriorated markedly as a result of sharp falls in the oil
price and the rouble and the imposition of western sanctions,
reducing investor appetite for Russian assets/business;

The downgrade also reflects weaker prospects for recovery of the
USD1.1bn exposure to holding company Renaissance Capital
Investments Limited (RCIL) and its affiliate, and hence for the
strengthening of RFHL's solvency, given the weak performance of
sister consumer finance bank (CB Renaissance Credit, Rencredit).
Fitch believes that the unwinding of the RFHL's exposures to RCIL
and its affiliate (together equal to 1.95x RFHL's equity) would
require the sale of Rencredit, which is likely to be problematic
in the forseeable future given its weak performance and the
negative outlook for the consumer finance sector.  In Fitch's
view, contingent risks for RFHL in case of Rencredit's failure
could also be significant.

The rating action also took into account the greater dependence
of RFHL's liquidity on large and apparently unsecured funding
contributions from certain counterparties/clients and related
parties.  A withdrawal by one of the largest customers could put
significant pressure on RFHL's liquidity.

At the same time, RFHL's ratings also consider the support which
has been made available to the company by its ultimate
shareholder, the Onexim Group, the stabilization of the company's
performance during 2013-2014, and the company's capable
management and limited risk appetite.

Fitch views RFHL's capitalization as weak, given the exposure to
RCIL and its affiliate, and USD272 million (equal to 0.46x end-
1H14 equity) of non-core investments, primarily in a Ukrainian
agricultural holding.  RCIL is fully owned by Onexim, and in turn
owns 100% of RFHL and an 85% share of RenCredit.  RFHL's exposure
primarily comprises USD902m of loans to and placements with RCIL,
but also includes USD254m to a subsidiary of RCIL which is
RenCredit's holding company.  Fitch views RenCredit's ability to
generate sufficient profits to repay this loan as weak given its
recent weak performance (losses under local GAAP in 2014 equaled
to 84% of its equity at the start of the year with shareholder
contributions restoring the bank's capital), weak asset quality
and the negative outlook for the Russian consumer finance sector.

RFHL's liquidity remains vulnerable, given its high reliance on
very short-term funding, primarily repo funding collateralized
with equities and bonds.  Liquidity could come under pressure in
case of a sharp market fall, resulting in additional collateral
posting requirements, which RFHL may have to meet before its
asset-side counterparties post additional collateral on their
funding from RFHL; or a weakening of customer and counterparty
confidence.  These risks are somewhat offset by the stability to
date of repo funding, which is provided by both international and
Russian counterparties, and funding support in the form of lumpy
deposits/placements from related parties and other

Profitability remains weak, but positively the company recorded a
small profit of USD9 million in 1H14, and management expects a
positive net result for the whole of 2014.  However, RenCap's
revenue base may suffer from a significant slump in trading
volumes of Russian equities, which will make it challenging to
deliver positive returns in 2015.

Market risk relating to potential proprietary trading is modest,
as RenCap has scaled down these operations, reflected in low
value at risk (USD2m) and a low USD4m net exposure for delta

RFHL has benefited from support provided by Onexim, including
USD350m emergency liquidity support in 4Q12 (later repaid) and
USD186m to fund a eurobond repayment in April 2014.  Onexim
continues to express its commitment to RFHL, and provides
business to the company, engaging it as an advisor on the group's
major transactions.  However, uncertainty remains about Onexim's
propensity to support over the long term and in all
circumstances, in particular given the absence of measures to
date to decisively strengthen the company's solvency.


The Negative Outlook reflects the possibility of RFHL being
downgraded further if the weakening of the Russian operating
environment results in (i) significant deterioration in the
company's performance; (ii) a significant liquidity squeeze; or
(iii) continued weakening of the performance of Rencredit, to the
extent that this materially increases contingent risks for RFHL.
If the operating environment improves and these risks subside,
the Outlook could be revised to Stable.

An upgrade would require a considerable strengthening of the
company's solvency through the unwinding of at least part of the
related-party exposure and non-core investments, or
recapitalization by Onexim.

The rating actions are:

  Long-term foreign currency IDR: downgraded to 'B-' from 'B';
  Outlook Negative

  Short-term IDR: affirmed at 'B'

  Senior unsecured debt Long-term rating of Renaissance
  Securities Trading Limited: downgraded to 'B-' from 'B',
  Recovery Rating 'RR4'

RENAISSANCE FINANCIAL: S&P Cuts Counterparty Credit Rating to B-
Standard & Poor's Ratings Services took these rating actions on
six securities companies with significant exposure to Russia:

   -- S&P lowered its long- and short-term counterparty credit
      ratings on Renaissance Financial Holdings Ltd. to 'B-/C'
      from 'B/B'.  The outlook remains negative.

   -- S&P affirmed its 'B-/C' and 'B/B' long- and short-term
      counterparty credit ratings on BCS Holding International
      Ltd. and subsidiary BrokerCreditService (Cyprus) Ltd.  The
      outlooks on both entities remain negative.

   -- S&P affirmed its 'B-/C' long- and short-term counterparty
      credit ratings and 'ruBBB-' Russia national scale rating on
      REGION Investment Co. ZAO.  The outlook remains negative.

   -- S&P affirmed its 'B+/B' long- and short-term counterparty
      credit ratings on Ronin Europe Ltd.  The outlook is stable.

   -- S&P affirmed its 'BB-/B' long- and short-term counterparty
      credit ratings and 'ruAA-' Russia national scale rating on
      Investment Company Veles Capital LLC.  The outlook remains

In S&P's view, economic prospects in Russia over the next couple
of years are likely to remain significantly weaker than S&P
anticipated.  S&P expects an economic decline in Russia in 2015
and a prolonged period of slow growth, at best.  Capital markets,
already narrow and shallow, will likely remain inactive, with
limited windows of opportunity opening only occasionally.  S&P
believes that, in this environment, the counterparty credit risk
for Russian securities companies will increase and that general
financial market conditions will remain challenging, given the
decoupling of money market rates from the policy corridor that
started in late 2014.  Volatility in Russian capital markets, as
market-based indicators illustrate, will remain elevated, in
S&P's view.

"We anticipate continued tight liquidity for Russian financial
institutions through 2015.  Although the Central Bank of Russia
has implemented measures to restore market confidence, including
announcing support for the central counterparty of the Moscow
exchange, we believe that banks will be less willing to provide
funding to securities companies, because of both capital
constraints and lower availability of liquidity in the market.  A
liquidity squeeze will likely keep trading volumes subdued,
putting pressure on the business positions of most securities
companies," S&P said.

As a result of these heightened risks, S&P has revised its
anchor -- the starting point for assigning a rating to a
securities company with significant exposure to Russia -- to 'b'
from 'b+'.

The rationales for S&P's rating actions on Russian securities
companies follow, with S&P's outlooks on each firm.


The downgrade reflects Russia's deteriorating operating
environment and the risks related to the potential negative
revaluation of Renaissance Financial Holdings Ltd. (RFHL)'s
noncore assets.  S&P expects that RFHL's management will continue
to improve bottom-line results from core business activities,
although legacy assets from the previous owner -- especially the
direct investments in Ukrainian agricultural business (US$223
million as of June 30, 2014) and land in Kenya (US$45.9
million) -- will likely affect the company's overall financial

RFHL is the nonoperating holding company of a group of
geographically diverse, fully owned operating entities, some of
which are not regulated, or are subject to what S&P views as
"loose" regulations.  S&P rates RFHL at the level of S&P's group
credit profile assessment because it believes that there are no
material restrictions preventing the operating entities from
upstreaming cash to RFHL.

The outlook remains negative because S&P still sees substantial
downside risks for RFHL, related to challenging economic
conditions in Russia.  S&P could lower the rating further if it
believes that the company's liquidity position has worsened, or
if support from ONEXIM Group, RFHL's ultimate parent, has



The affirmation largely reflects BCS Group's (which includes BCS
Holding and BCS Cyprus) recent shift of its activities to foreign
markets, namely the U.K., from Russia.

In particular, S&P anticipates that approximately one-third of
BCS Group's operating income in 2015 will come from the
international-to-international segment of its global
institutional brokerage activity, as the group expands its
presence on the London Stock Exchange.  Consequently, S&P has
kept its anchor for the group at 'b+'.

The negative outlooks reflect the potential impact of increased
risks S&P sees in the Russian financial market on BCS Holding and
BCS Cyprus.  S&P could lower the ratings if it sees that the
group's international operations do not pick up as S&P currently


The affirmation largely reflects the recent improvement in
REGION's funding structure.

S&P views REGION as well prepared for the deterioration in
Russia's economic and financial conditions.  In particular, the
company deleveraged in the last quarter of 2014, limiting losses
from the interest-rate shock in mid-December 2014 and supporting
our risk-adjusted capital ratio for the firm at above 3% for
2014. REGION has also diversified its funding base, thanks to
issues of Russian ruble-denominated notes in December 2014 and
January 2015. Although these issues have a put option in 12
months, which is typical for the Russian bond market, they are
already included in the Central Bank of Russia's Lombard list,
meaning they can be used by investors as collateral for
repurchase transactions with the central bank.  This gives REGION
an edge over its direct competitors and adds to the stability of
its funding base.

The outlook remains negative because S&P stills see substantial
downside risks related to the challenging economic conditions in
Russia, and in particular, to increased volatility of the
domestic financial markets.


The affirmation balances the increasing challenges the company
may face because of Russia's difficult operating environment with
what S&P views as ample liquidity and a very strong capital
cushion to absorb potential credit and market losses.

S&P's risk-adjusted capital ratio for Ronin stood at a very high
77% at midyear 2014.  At year-end 2014, Ronin's adjusted total
equity was larger than its entire securities investments, a
characteristic which, S&P expects, will remain unchanged over the
next few years.  Moreover, S&P expects the company's conservative
dividend policy and fairly good, albeit volatile, internal
capital generation will support capitalization over the next few

S&P views the company's risk profile as mostly in line with those
of peers within a similar risk category.  S&P therefore no longer
apply its one-notch negative comparable ratings adjustment to

The stable outlook incorporates the increasing challenges the
company may face as a result of Russia's tough operating
environment, given that both Ronin and its parent, Ronin Partners
B.V., have exposure to the highly volatile Russian financial
market.  At the same time, S&P anticipates that Ronin will
maintain its conservative financial policies, very strong
capitalization, and ample liquidity.


The affirmation reflects S&P's opinion that Veles is likely to
remain resilient to the deteriorating economic conditions in
Russia, due to its conservative financial and risk management
policies.  S&P has consequently revised its assessment of Veles'
risk position to "strong" from "adequate."

Veles has continued to reduce its inventory position, limiting
the variety and credit quality of instruments in its portfolio to
a selected number of issuers.  Its market risk management is
robust, with value-at-risk metrics underestimating daily losses
only once in fourth-quarter 2014, despite heightened volatility.
Although Veles opened a position in Eurobonds of Russian state-
owned blue chip companies in late 2014, the ensuing increase in
currency risk has not materially affected Veles' overall risk

The negative outlook reflects the increased downside risks that
Veles faces, related to challenging economic conditions in
Russia, and in particular, to the increased volatility in the
Russian financial market.


Renaissance Financial Holdings Ltd.

                                To              From
Anchor:                         b               b+
Business Position:              Adequate (0)    Adequate (0)
Capital and Earnings:           Moderate(0)     Moderate(0)
Risk Position:                  Moderate (-1)   Moderate (-1)
Funding:                        Moderate (-1)   Moderate (-1)
Liquidity:                      Adequate-High   Adequate-High
Comparable Ratings Adjustment:  +1              +1
Support:                        0               0
GRE Support:                    0               0
Group Support:                  0               0
Sovereign Support:              0               0
Holding Co. Notching:           0               0
Outlook:                        Negative        Negative

BCS Holding International Ltd.
                                To              From
Anchor:                         b+              b+
Business Position:              Strong (+1)     Strong (+1)
Capital and Earnings:           Adequate (0)    Adequate (0)
Risk Position:                  Adequate (0)    Adequate (0)
Funding:                        Moderate (-2)   Moderate (-2)
Liquidity:                      Adequate-Low    Adequate-Low
Comparable Ratings Adjustment:  0               0
Support:                        0               0
GRE Support:                    0               0
Group Support:                  0               0
Sovereign Support:              0               0
Holding Co. Notching:          -1               -1
Outlook:                        Negative        Negative

REGION Investment Co. ZAO
                                To              From
Anchor:                         b               b+
Business Position:              Strong (+1)     Strong (+1)
Capital and Earnings:           Weak (-1)       Weak (-1)
Risk Position:                  Adequate (0)    Adequate (0)
Funding:                        Adequate (-1)   Moderate (-2)
Liquidity:                      Adequate-Low    Adequate-Low
Comparable Ratings Adjustment:  0               0
Support:                        0               0
GRE Support:                    0               0
Group Support:                  0               0
Sovereign Support:              0               0
Holding Co. Notching:           0               0
Outlook:                        Negative        Negative

Ronin Europe Ltd.
                                To              From
Anchor:                         b               b+
Business Position:              Weak (-2)       Weak (-2)
Capital and Earnings:           Very Strong(2)  Very Strong(2)
Risk Position:                  Adequate (0)    Adequate (0)
Funding:                        Strong (1)      Strong (1)
Liquidity:                      Strong          Strong
Comparable Ratings Adjustment:  0               -1
Support:                        0               0
GRE Support:                    0               0
Group Support:                  0               0
Sovereign Support:              0               0
Holding Co. Notching:           0               0
Outlook:                        Stable          Stable

Investment Company Veles Capital LLC
                                To              From
Anchor:                         b               b+
Business Position:              Moderate (-1)   Moderate (-1)
Capital and Earnings:           Very Strong(2)  Very Strong(2)
Risk Position:                  Strong (+1)     Adequate (0)
Funding:                        Strong (1)      Strong (1)
Liquidity:                      Strong          Strong
Comparable Ratings Adjustment:  -1              -1
Support:                        0               0
GRE Support:                    0               0
Group Support:                  0               0
Sovereign Support:              0               0
Holding Co. Notching:           0               0
Outlook:                        Negative        Negative


                                  To                From
Renaissance Financial Holdings Ltd.
Counterparty Credit Rating       B-/Negative/C     B/Negative/B

Renaissance Securities Trading Ltd.
Senior Unsecured(1)              B-                B

Ratings Affirmed

BCS Holding International Ltd.
Counterparty Credit Rating       B-/Negative/C

BrokerCreditService (Cyprus) Ltd.
Counterparty Credit Rating       B/Negative/B

REGION Investment Co. ZAO
Counterparty Credit Rating       B-/Negative/C
Russia national scale rating     ruBBB-

Region Capital LLC
Senior Unsecured(2)              B-
Russia National Scale(2)         ruBBB-

Ronin Europe Ltd.
Counterparty Credit Rating       B+/Stable/B

Investment Company Veles Capital LLC
Counterparty Credit Rating       BB-/Negative/B
Russia National Scale            ruAA-

(1) Guaranteed by Renaissance Financial Holding LLC.
(2) Guaranteed by REGION Investment Co. ZAO.


RURAL HIPOTECARIO IX: Moody's Cuts Rating on Class B Notes to B1
Moody's Investors Service upgraded the rating of twelve notes,
confirmed the rating of two notes and affirmed the rating of one
note in the five Spanish residential mortgage-backed securities

The rating action concludes the review of fourteen notes
initiated on Jan. 23, 2015, following the upgrade of the Spanish
country ceiling to Aa2 from A1

The rating upgrades reflect (1) the increase in the Spanish
local-currency country ceiling to Aa2, (2) sufficiency of credit
enhancement in the affected transactions for the revised rating
levels and, (3) in the case of IM CAJAMAR 1, FTA, TDA CAM 8, FTA
and TDA CAM 9, FTA, the reduction in the portfolio credit
enhancement (MILAN CE).

The confirmations and affirmation reflect that the current credit
enhancement levels commensurate with the current ratings.

The country ceilings reflect a range of risks that issuers in any
jurisdiction are exposed to, including economic, legal and
political risks.  On Jan. 20, 2015, Moody's announced a six-notch
uplift between a government bond rating and its country risk
ceiling for Spain.  As a result, the maximum achievable rating
for structured finance and covered bond transactions was
increased to Aa2 from A1 for Spain.

Key collateral assumptions:

The expected loss assumption has not been changed in any of these
five transactions as the performance is in line with Moody's

On January 20, Moody's announced that the minimum portfolio
credit enhancement (CE) is no longer applicable for most EMEA
markets following the updates to its ABS and RMBS rating
methodologies.  As a result, the MILAN CE in IM Cajamar 1, FTA
has been decreased to 7.5% from 10%.

In the other four transactions the removal of the minimum
portfolio CE has not had any impact, as the MILAN CE assumption
is driven by the expected loss multiple.  The MILAN CE has been
decreased in TDA CAM 8, FTA to 17% from 20% and in TDA CAM 9, FTA
to 20% from 23% due mainly to the decrease in the Expected Loss
over current pool balance after the realization of defaults since
the last review.  The MILAN CE assumption has been kept at 15%
for Rural Hipotecario IX, FTA and Rural Hipotecario X, FTA.

Sequential to Pro rata trigger

In Moody's analysis of Rural Hipotecario IX, FTA, Moody's has
taken into consideration a performance trigger which could switch
the amortization of the Class A notes to pro rata if the
outstanding balance of the non delinquent mortgage loans,
increased by the mortgage loan principal repayment income amount
received during the Determination Period preceding the relevant
Payment Date, is lower than the sum of the outstanding principal
balance of Class A notes.

Exposure to Counterparties

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

In IM Cajamar 1, FTA's rating actions takes into account the
servicer commingling exposure to Caja Rurales Unidas (NR) and the
swap counterparty exposure to Banco Cooperativo Espanol, S.A.

In Rural Hipotecario IX, FTA and Rural Hipotecario X, FTA's
rating consider the exposure to Banco Cooperativo Espanol, S.A.
(Ba2/NP) as the swap counterparty, and the commingling exposure
to multiple servicers, most of them small entities non rated by

In TDA CAM 8, FTA and TDA CAM 9, FTA's rating actions take into
consideration the servicer commingling exposure to Banco Sabadell
S.A. (Ba2/NP).

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
January 2015.

Factors or circumstances that could lead to an upgrade of the
ratings include (1) further reduction in sovereign risk, (2)
performance of the underlying collateral that is better than
Moody's expected, (3) deleveraging of the capital structure and
(4) improvements in the credit quality of the transaction

Factors or circumstances that could lead to a downgrade of the
ratings include (1) an increase in sovereign risk, (2)
performance of the underlying collateral that is worse than
Moody's expects, (3) deterioration in the notes' available credit
enhancement and (4) deterioration in the credit quality of the
transaction counterparties.

List of Affected Ratings:


  -- EUR353.3 million A Notes, Upgraded to Aa2 (sf); previously
     on Jan 23, 2015 A1 (sf) Placed Under Review for Possible

  -- EUR9.3 million B Notes, Upgraded to A3 (sf); previously on
     Jan 23, 2015 Baa3 (sf) Placed Under Review for Possible

  -- EUR4.1 million C Notes, Upgraded to Ba1 (sf); previously on
     Jan 23, 2015 Ba3 (sf) Placed Under Review for Possible

  -- EUR3.3 million D Notes, Confirmed at B3 (sf); previously on
     Jan 23, 2015 B3 (sf) Placed Under Review for Possible


  -- EUR1021.7 million A2 Notes, Upgraded to A1 (sf); previously
     on Jan 23, 2015 Baa1 (sf) Placed Under Review for Possible

  -- EUR210 million A3 Notes, Upgraded to A2 (sf); previously on
     Jan 23, 2015 Baa3 (sf) Placed Under Review for Possible

  -- EUR29.3 million B Notes, Upgraded to B1 (sf); previously on
     Jan 23, 2015 B3 (sf) Placed Under Review for Possible

  -- EUR28.5 million C Notes, Affirmed Caa3 (sf); previously on
     Apr 29, 2013 Downgraded to Caa3 (sf)


  -- EUR1788.8 million A Notes, Upgraded to A1 (sf); previously
     on Jan 23, 2015 Baa2 (sf) Placed Under Review for Possible

  -- EUR37.6 million B Notes, Upgraded to Ba1 (sf); previously on
     Jan 23, 2015 B1 (sf) Placed Under Review for Possible

  -- EUR53.6 million C Notes, Confirmed at Caa1 (sf); previously
     on Jan 23, 2015 Caa1 (sf) Placed Under Review for Possible

Issuer: TDA CAM 8, FTA

  -- EUR1635.4 million A Notes, Upgraded to Baa3 (sf); previously
     on Jan 23, 2015 Ba2 (sf) Placed Under Review for Possible

Issuer: TDA CAM 9, FTA

  -- EUR250 million A1 Notes, Upgraded to Ba1 (sf); previously on
     Jan 23, 2015 Ba3 (sf) Placed Under Review for Possible

  -- EUR943.5 million A2 Notes, Upgraded to Ba1 (sf); previously
     on Jan 23, 2015 Ba3 (sf) Placed Under Review for Possible

  -- EUR230 million A3 Notes, Upgraded to Ba1 (sf); previously on
     Jan 23, 2015 Ba3 (sf) Placed Under Review for Possible


BRAVIDA HOLDING: S&P Affirms 'B' CCR; Outlook Stable
Standard & Poor's Ratings Services affirmed its 'B' long-term
corporate credit rating on Bravida Holding AB, a Nordic provider
of multitechnical services.  The outlook is stable.

At the same time, S&P affirmed the 'B' issue credit rating on
Bravida's senior secured notes.  The recovery rating on these
notes is unchanged at '4', indicating S&P's expectation of
average (30%-50%) recovery after a payment default.

Bravissima Holding AB, parent of Bravida Holding AB, has repaid
Swedish krona (SEK) 800 million (about US$100 million) of its
shareholder loan by increasing its existing payment-in-kind (PIK)
toggle note by the same amount.  In S&P's analysis, it includes
both loans in its debt calculations.  At the same time,
Bravissima has declared its intention to pay a SEK300 dividend in
April 2015.

The affirmation reflects S&P's view that Bravida's financial risk
profile, incorporating the refinancing, will remain in line with
the current 'B' rating.  Although the ratings are unchanged, S&P
views the transaction as negative for Bravida's overall credit
quality.  It is the second time in less than 12 months that the
group has reduced the shareholder loan, which does not pay in
cash, by increasing the amount of a loan with a higher likelihood
of cash interest payments.  However, according to the covenants,
only 50% of net income can be used for interest payments and only
if cash in hand is above SEK250 million.  Furthermore, it will be
the second time within a year that the group will have paid a
relatively large dividend.  That said, S&P expects that the
group's solid free cash flow generation, supported by low capital
expenditure requirements, will sufficiently cover the likely
increase in cash interest due.  On the positive side, operating
performance in 2014 was better than S&P expected, chiefly because
of a strong contribution from the Norwegian business.  This
partially offsets the negative impact of the refinancing.

The ratings are constrained by S&P's view that Bravida has a
"highly leveraged" financial risk profile, reflecting -- in
addition to the above-mentioned PIK toggle notes -- debt
consisting of senior secured notes of SEK3.3 billion and the
remaining SEK875 million of the shareholder loan after
refinancing (structured as preference shares), which S&P treats
as debt-like under its criteria.  These shares are, however,
deeply subordinated and accrue interest.

To calculate S&P's figures for adjusted debt, it do not net any
cash on the balance sheet, in accordance with S&P's criteria.
S&P forecasts that adjusted funds from operations (FFO) to debt
will stabilize at about 5%-6% and debt to EBITDA at about 7.5x
over the next two years.  S&P expects the FFO cash interest ratio
to remain between 2.8x-3.3x as cash interest increases but is
partly offset by the operational improvements.

In S&P's view, the main factor constraining Bravida's business
risk is its limited scale and scope of operations and limited
geographic diversity.  The company's concentration in three
dynamic and growing economies--Sweden, Norway, and Denmark--does
clearly offset the geographical concentration.  Bravida's
weaknesses are further offset by its diverse customer base and
the high number of smaller contracts, many of which are
recurring, which diversifies risk and supports the very low
volatility of earnings.  S&P also views Bravida's very low
capital intensity as supporting cash flow generation; the group's
annual investments in assets represent less than 1% of group

S&P's base case assumes:

   -- A supportive macroeconomic environment over 2015 and 2016
      in which real GDP grows by between 1.8%-2.0% in Norway and
      Denmark, and between 2.4%-2.7% for Bravida's largest
      market, Sweden.

   -- Substantial underlying investment needs in Sweden, Norway,
      and Denmark.  In particular, public infrastructure and
      overall renovation needs will remain supportive of
      Bravida's activity levels.  This is also reflected in the
      company's healthy and growing backlog.

   -- Competitive forces may hamper growth in certain regions and
      S&P anticipates broadly stable operating margins.

   -- S&P therefore also expects acquisitions to continue to
      support top-line growth.

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

   -- Unadjusted EBITDA margins for 2015 of 5.7%-6.3%.
   -- Adjusted debt to EBITDA of 7x-8x.
   -- An FFO cash interest coverage ratio of 2.8x-3.3x.

The stable outlook reflects S&P's expectation that Bravida should
continue to generate positive free operating cash flow and
maintain sufficient headroom to cover the increase in its debt-
service costs resulting from the likely increase in cash
interest. S&P expects Standard & Poor's-adjusted FFO cash
interest cover to remain above 2.0x and adjusted debt to EBITDA
to remain between 6.5x-7.5x.

S&P could lower the rating if any additional shareholder-friendly
action were to be undertaken, such that S&P would view the cash
interest burden as too high, reflected by FFO to cash interest
below 2x.  S&P could also lower the ratings if an unexpectedly
sharp economic downturn in Scandinavia were to occur, squeezing
the EBITDA margin to less than 5.0%, or if the group were to
engage in large debt-funded acquisitions.

At this stage, S&P views a positive rating action as remote,
given the group's high leverage.  While S&P could raise the
rating if Bravida's adjusted FFO to debt climbed above 15% on a
sustainable basis, S&P considers this unlikely in the next two

U N I T E D   K I N G D O M

AFREN PLC: Fitch Lowers IDR to 'RD' Following USD15MM Default
Fitch Ratings has downgraded UK-based energy group Afren plc's
Long-term Issuer Default Rating (IDR) to 'RD' (Restricted
Default) from 'C', following the company's default on its USD15m
coupon payment under its 2016 notes.  The company's senior
secured rating is affirmed at 'C'/'RR6'.

The rating action follows Afren's announcement that it has
decided, at the expiration of the 30 day grace period, not to pay
USD15 million of interest originally due on February 1, 2015
under its 2016 notes.  Effectively, it means that Afren has
defaulted on the obligation.

Afren says it has received an assurance from the ad hoc
bondholders committee that the creditors have no current
intention to take enforcement action with regard to the 2016
notes; however, we do not view this assurance from the ad hoc
committee as legally binding on all bondholders.  Afren continues
to discuss with its advisers and largest stakeholders a possible
financial restructuring.  On March 2, 2015, Afren announced it
obtained from the lenders of its USD300 million Ebok facility a
further deferral of the USD50 million amortization payment due at
end-January 2015 until end-March 2015.

In the event of a capital restructuring, we will review the
rating to reflect the appropriate IDR for the issuer's post-
exchange capital structure, risk profile and prospects in
accordance with relevant criteria, once sufficient information is


Lower Production, Higher Leverage

Afren's credit metrics have weakened since the beginning of the
year, reflecting lower output in 2014 compared with 2013 and
lower oil prices.  Its funds from operations (FFO) adjusted gross
leverage was 2.8x at end-9M14 (1.8x at end-2013), and we believe
it will exceed 4x in 2015, assuming moderate production growth,
Brent price of USD55/bbl in 2015 and the company's hedging

Reserve Revision Adds to Pressure

In January 2015 Afren announced it has revised down gross 2P
reserves at the Barda Rash field in the Kurdistan region of Iraq
by 190 million barrels of oil equivalent.  The movement in
reserves and resources is due to the 2014 reprocessing of 3D
seismic shot in 2012 and processed in 2013, as well as results
from the company's drilling campaign.  Although Fitch has not
factored in the potential production in Kurdistan in our model,
this change removed a potential source of flexibility for the
company or recovery for creditors.

Finding New Management Critical

Finding suitable replacements for dismissed executives is a
significant challenge for Afren.  This is particularly important
in view of the company's reduced output in Nigeria and
interrupted operations in Kurdistan.  Fitch is seeking more
information on Afren's strategy and direction to stabilize and
increase output, especially if oil prices remain at their
depressed levels -- which may be difficult in the absence of a
permanent CEO with a clear strategic vision.

Production to Stabilize

Afren's net production declined to 27.2 thousand barrels per of
oil per day (mbpd) in 3Q14 from 49.6mbpd in 3Q13, reflecting a
lower production share after initial cost recovery but also due
to lower gross production at Ebok, its major asset.

Fitch expects that in 2014 Afren's net production would have been
at or slightly below 32mbpd, 15% lower than we had projected in
May. Afren explains that the lower-than-expected production
mainly results from operational delays with installing the
Central Fault Block Extension platform at Ebok, and maintenance
works in 3Q14. The platform, which is set to be finally completed
in January 2015, should enable Afren to increase output of the
field.  Other projects, including the North Fault Block at Ebok
and ramping-up OML26, should help Afren stabilize its net oil
production in the medium term.  Fitch expects the company's net
production to average 37mbpd in 2015.

Concentrated Production

Afren's production remains highly concentrated.  In 9M14, Ebok
accounted for 68% of Afren's total production, and it had no
material oil output outside Nigeria.  Any swift progress in
Kurdistan, where Afren has material reserves, is now less likely
than we previously expected due to Kurdistan's unstable political
and security environment and higher-than-expected water content.
Other challenges include a lack of access to a secure
transportation channel and an absence of the associated gas
treatment infrastructure.  Fitch assumes that Nigeria is likely
to dominate Afren's output in the medium term. Such concentration
exposes Afren to elevated regulatory and tax risks.

Tax Holiday Benefits Cash-Flows

Oil companies are generally heavily taxed in Nigeria - they pay
substantial royalties and are subject to the petroleum profit tax
(PPT), which normally varies from 50% to 85% of pre-tax profits.
Afren's Ebok field is exempt from paying PPT up to May 2016,
which significantly benefits Afren's cash flows and should help
finance new projects while keeping leverage at a moderate level.
However, the recent production decline at Ebok and lower oil
prices could make this strategic advantage less pronounced.
Fitch expects that Afren's cash tax payments will materially
increase in 2017.


   -- Oil price: USD55/bbl in 2015, USD65/bbl in 2016 and
      USD80/bbl thereafter
   -- net oil production to average 37mbpd in 2015
   -- maintenance capex of USD200-USD300m in 2015-2016
   -- no dividend payments


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

   -- Afren entering into bankruptcy filings, administration,
      receivership, liquidation or other formal winding-up

Positive: Following the possible financial restructuring and once
sufficient information is available, the 'RD' rating will be re-
rated to reflect the appropriate IDR for the issuer's post-
exchange capital structure, risk profile and prospects in
accordance with relevant criteria.


Fitch views Afren's liquidity risk as high.  The company agreed
with its lenders regarding a further deferral of the USD50
million amortization payment under the USD300m Ebok facility and
has defaulted on its 2016 notes.  At Dec. 31, 2014, Afren
reported that it had a cash balance of approximately USD235
million.  The company has now confirmed that actual liquidity
available is significantly lower than cash on balance sheet as a
result of restricted and segregated cash balances in place to
address operational requirements.

BOOKABLE HOLIDAYS: In Liquidation, Owes Creditors GBP1.12MM
Eleanor Ward at business sale report says that Bookable Holidays,
a failed online holiday site, has entered liquidation with
GBP1.12 million owed to unsecured creditors.

Bookable Holidays entered administration late last year, but new
reports reveal that the firm is now in liquidation, according to
business sale report.  The report by KRE Corporate Recovery also
revealed that the figure owed to unsecured creditors had risen
from GBP658,399 to GBP1.12 million since administrators were
appointed, business sale report notes.

The report discloses that creditors are expected to receive a
dividend, but it will not reflect the full sum owed to them.
Atol and credit card claims make up GBP650,000 of the outstanding
balance, due to the many refunds made to customers who could not
complete their travel plans booked through the company, the
report relates.

After entering administration, the company's intellectual
property rights, brand and the lease to its premises were sold to
TravelUp for GBP390,000, the report says.

However, it has been revealed that administrators tried and
failed to sell a villa in Florida for GBP12,500 owned by Bookable
Holidays, the report relays.  Furthermore, director and founder
Jason Dwyer has an outstanding loan of GBP57,000, which he has
said he will not be able to repay in full, the report discloses.

Regarding the creditors, KRE Corporate report says: "It appears
likely a dividend will be declared to the non-preferential
unsecured creditors and accordingly the company has been placed
into Creditors Voluntary Liquidation to facilitate the
distribution, the report notes.

"Whilst we envisage a dividend will be available to the unsecured
creditors' we are unable to advise of the quantum of any such
return as there are still potentially 1,059 creditors claims
outstanding," KRE Corporate added.

CATHOLIC CHURCH: Fears Liquidation Over Failure to Meet Deadline
Jonathan Luxmoore at The Tablet reports that the Catholic Church
in Russian-occupied Crimea fears it will lose its legal status
after failing to meet a deadline for re-registering under Russian

"The Russian rulers demanded that Ukrainian churches and
religious organizations file the documents required for their new
registration, this time in line with Russian Federation law,"
explained Ukraine's Kiev-based Religious Freedom Institute,
according to The Tablet.

"Failing to fulfill these demands will mean the withdrawal of
legal status and hence their liquidation," the institute added.

The statement was issued as the March 1 deadline passed for re-
registering Catholic parishes and other religious communities in
Crimea, which was forcibly annexed by Russia in March 2014, the
report discloses.  It said the requirement to re-register was
designed to force clergy and church members to accept Russian
citizenship and to ensure "complete subordination" to Russian
law, the report says.

It added that the denial of legal status would immediately affect
the property rights of religious minorities, curtailing their
capacity to recruit foreign priests, open bank accounts and
publish and distribute literature, as well as to engage in
charity work and conduct rites in hospitals, orphanages and
prisons, the report relays.

The Catholic Church's Odessa-Simferopol diocese includes a Crimea
vicariate with parishes in Sevastopol, Teodozia, Kerch, Yalta,
Dzankoy, Eupatoria and the regional capital, Simferopol, which
continued functioning under restrictions after Crimea's
occupation, the report says.

The larger Greek Catholic Church traditionally makes up around 10
percent of the peninsula's 1.96 million inhabitants, and has also
expressed fears about its future in Crimea, the report discloses.

In January, Crimea's Catholic auxiliary bishop, Mgr Jacek Pyl,
told Poland's Catholic information agency, KAI, the local Church
would remain canonically subject to Ukraine's Bishops Conference,
but said Crimea's Russian-installed premier, Sergei Aksionov, had
offered "broad help" with legal procedures after receiving
guidelines from Moscow, the report relays.

However, a senior Russian official, Vladimir Bobrovsky, told
journalists only nine religious communities had so far been
registered, with another 73 requests pending, out of the 1,409
registered in Crimea before the annexation, the report discloses.
Ukraine's breakaway Orthodox Church of the Kievan Patriarchate
reported that its local archbishop had received a
"recommendation" that he hand over his Church's land in
Simferopol to the Russian Federal Security Service, the report

HIGHTEX GROUP: Commences Insolvency Process
Steve McGrath at Alliance News reports that Hightex Group PLC on
March 2 started insolvency proceedings, after revealing that it
wouldn't get any money from the likely sale of its German
operating business out of Germany's equivalent of Chapter 11.

The report says the company's Hightex GmbH operating business
went into a self-administered creditors' plan after accusing its
joint venture partner in Brazil of misappropriation of EUR3.3
million of funds. The venture partners had been working together
on two 2014 World Cup stadia. The business was also hit by its
failure to win any further stadia contracts, notably for the 2018
World Cup that's being held in Russia, the report recalls.

Alliance News relates that the Hightex GmbH creditors' committee
last month unanimously approved in principle an offer for the
business made by an Austrian company. The plan for the disposal
of the business will be submitted to the local court in
Rosenheim, Bavaria, and, once confirmed by the court, the
decision will be mandatory for all creditors, according to
Alliance News.

"The directors of Hightex Group plc regret that as a result of
the information regarding the offer received on February 27th it
is now clear that no funds from Hightex GmbH will flow to Hightex
Group plc, which is therefore in a critical financial situation.
The directors have concluded that an insolvency procedure should
be commenced immediately and details will be confirmed as soon as
practicable," the report quotes the parent company as saying.

Hightex Group shares were suspended on Feb. 27 at the request of
the company pending an update on the German operating unit.

Hightex Group plc is the holding company. The Company, through
its subsidiaries, is engaged in the design, production and
installation of polymer membrane tensile structures, and the
exploitation of intellectual property applications in the field
of solar energy and related areas. The Company's principal
operating subsidiary, Hightex International (HTI) AG (HTI) and
its subsidiary undertakings are involved in the design,
production and installation of polymer membrane structures for
use by architects and structural engineers. The Company's
subsidiary, Pizaul AG, owns intellectual property rights, which
are focused on applications in the generation of solar energy,
solar cooling and the prevention of heat from entering homes,
offices and other structures. The Company operates in Europe,
Asia, United States, Africa and Australia.

NARTEK: In Liquidation, Owes Over GBP2 Million
---------------------------------------------- reports that wholesalers and importers across the UK
and the Netherlands are owed thousands of pounds after New
Spitalfields Market-based firm Nartek went into liquidation, FPJ
can reveal.

The total amount owed to creditors is over GBP2 million, with
around 150 businesses left with unpaid invoices of up to
GFBP300,000 after the company folded last month, according to

Most of the creditors are based in the UK, with several from the
Netherlands as well as Belgium, Jordan, France and Poland,
according to

Official liquidation firm Panos Eliades Franklin & Co said the
Turkish wholesaler went into liquidation on February 6, and
confirmed it is now in the process of retrieving money owed to
the company, so that it can pay its debts, the report notes.

Partner Panos Eliades, who has responsibility for the case, said
the liquidation was a result of cashflow mismanagement, and said
that the money owed to the company by a further 150 companies
would be enough to cover debts to creditors, providing it can be
retrieved, the report relays.

Mr. Eliades said one of the company's directors invested
GBP500,000 of his own money, which was also lost, the report

"Nartek owes GBP2.2 million to around 150 creditors.  It was a
case of money was going out quicker than it was going in.  If we
regained all the money, everyone would be paid off, but this
could take another six to nine months," the report quoted Mr.
Eliades as saying.

"The company should have concentrated more on collecting the
money due to them.  The reason I will need time is that some, not
all, of the people that owe money operate from a stall and not
from a shop, which makes it more difficult to sue if push comes
to shove," Mr. Eliades added.

One importer, who said he is not owed money, nevertheless
described the news as a "major casualty" in the wholesale sector,
the report says.  "A lot of people are owed a lot of money.  We
haven't had a major bankruptcy for a couple of years now," Mr.
Eliades told FPJ, the report discloses.

Last month, Dutch exporter Marni Fruit released a public message
to warn the fresh produce trade about Nartek, described as a
"dubious debtor," the report notes.

A statement from Marni Fruit, published on FreshPlaza, read:
"Deliveries are claimed weeks after delivery and credit notes are
made.  Despite many promises of payment, nothing has been
received so far.  Invoices are now 120 and 113 days old.  Emails
and phones are no longer being answered," the report adds.


* BOOK REVIEW: Lost Prophets -- An Insider's History
Author: Alfred L. Malabre, Jr.
Publisher: Beard Books
Softcover: 256 pages
List Price: $34.95
Review by Henry Berry
Order your personal copy today at

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

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

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

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

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


Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
share in public markets.  At first glance, this list may look
like the definitive compilation of stocks that are ideal to sell
short.  Don't be fooled.  Assets, for example, reported at
historical cost net of depreciation may understate the true value
of a firm's assets.  A company may establish reserves on its
balance sheet for liabilities that may never materialize.  The
prices at which equity securities trade in public market are
determined by more than a balance sheet solvency test.

Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals.  All titles are
available at your local bookstore or through  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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re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
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                 * * * End of Transmission * * *