TCREUR_Public/150318.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, March 18, 2015, Vol. 16, No. 54



NEXTEER AUTOMOTIVE: 2014 Results Support Moody's 'Ba1' CFR
PAPREC HOLDING: Moody's Assigns 'B1' CFR; Outlook Stable
PAPREC HOLDING: S&P Assigns Preliminary 'B+' CCR; Outlook Stable


VULCAN LTD: Fitch Raises Rating on Class D Notes to 'CCCsf'


ALPHA BANK: S&P Retains CCC+ Rating on CreditWatch Negative
SEANERGY MARITIME: Claudia Restis Reports 43% Stake at Dec. 30
* Moody's Says Greek RMBS Performance Stable in January 2015


DARTRY PARK: Moody's Assigns 'Ba2' Rating on EUR24.5MM D Notes
DARTRY PARK: Fitch Assigns Final 'B-sf' Rating to Class E Notes


BANCA MEDIOCREDITO: Fitch Cuts LT Issuer Default Rating to 'B'
MEDIOCREDITO TRENTINO: Fitch Lowers IDR to 'BB-'; Outlook Stable


DTEK ENERGY: Fitch Cuts Long-Term Issuer Default Ratings to 'C'


COPEINCA AS: Fitch Raises Foreign Currency IDR to 'BB-'


PORTO CITY: Fitch Affirms 'BB+' Issuer Default Rating


ARMONIA CENTER: Put Up for Sale for EUR7MM; APS Among Creditors


ISR TRANS: Moody's Withdraws 'Caa1' Corporate Family Rating
ISR TRANS: Moody's Withdraws '' LT NS Corp. Family Rating
MTS BANK: Fitch Affirms 'b-' Viability Rating
NIZHNIY NOVGOROD: Fitch Revises Outlook to Neg. & Affirms BB IDR
PENZA REGION: Fitch Affirms 'BB' IDR; Outlook Positive

ULYANOVSK REGION: Fitch Lowers IDRs to 'B+'; Outlook Negative
URAL-INVEST LLC: April 16 Hearing Scheduled for Bankruptcy Claim


BANCO DE MADRID: Files for Creditor Protection


BELVEDERE UKRAINE: Parent Challenges Court Ruling on Auction

U N I T E D   K I N G D O M

BLIPFOTO: Funding Issues Prompt Liquidation
OLD MUTUAL LIFE: Fitch Affirms 'BB' Subordinated Debt Rating
PETERBOROUGH PLC: S&P Affirms 'B-' Rating on Sr. Sec. Bank Loan
TRAVELPORT WORLDWIDE: S&P Raises CCR to 'B'; Outlook Positive
WAGAMAMA FINANCE: S&P Reinstates 'B-' Rating on GBP150MM Notes


* S&P Takes Various Rating Actions on European CDO Tranches
* Moody's Publishes New Bank Rating Methodology



NEXTEER AUTOMOTIVE: 2014 Results Support Moody's 'Ba1' CFR
Moody's Investors Service said that Nexteer Automotive Group
Limited's improved financial results for 2014 support its Ba1
corporate family rating and senior unsecured rating as well as
the stable rating outlook.

"Nexteer's posting of robust revenue growth and an improved
EBITDA margin in 2014 exceeded our expectations, driven mainly by
the ramping up of its newly launched electric power steering
programs with better gross margin," says Chenyi Lu, a Moody's
Vice President and Senior Analyst. "The company also achieved new
customer and program wins in China, and made progress on cost

Based on Nexteer's announcement, revenue grew 24.8% year-on-year
to US$2.98 billion in 2014 from US$2.39 billion in 2013.  The
company's adjusted EBITDA margin also improved to 9.3% from 6.8%.
Consequently, adjusted EBITDA increased by 70.7% year-on-year to
US$276 million from US$161 million 2013.

The increase in earnings led in turn to an improvement in
Nexteer's financial leverage to 3.0x in 2014 from 4.2x in 2013,
despite the rise in debt.  Adjusted debt grew to US$817 million
at end-2014 from US$673 million at end-2013, driven mainly by a
bond issuance of US$250 million in November 2014.  However, this
level of leverage is in line with its Ba1 rating.

Moody's expects Nexteer's revenue to grow by high-single digits
on an annual basis over the next 12-18 months, driven by the
ramping up of its newly launched electric power steering programs
this year and the last two years, and its growing customer base
and new program wins in China.

Moody's also expects its EBITDA margin to stay at current levels
as Nexteer expands its scale of operations and continues with
cost improvements to counter the effects of the price reductions
demanded by auto manufacturers.

Moody's expects Nexteer's adjusted debt/EBITDA to decline to
2.5x-3.0x over the next 12-18 months, given the company's
expected robust revenue growth and stable margins.

Nexteer's liquidity position is adequate.  The company had
unrestricted cash of US$380 million at end-2014, more than
sufficient to cover capex of $175 million and short-term maturing
debt of US$97 million.

The Ba1 corporate family rating incorporates a two-notch uplift
based on Moody's expectation of strong support in times of
financial distress, mainly from Aviation Industry Corporation of
China (unrated), the ultimate owner of AVIC Automobile Industry
Holding Co., Ltd. (unrated), which has a beneficial ownership of
34% in Nexteer.

The principal methodology used in this rating was Global
Automotive Supplier Industry published in May 2013.

Headquartered in Saginaw, Michigan, and listed on the Hong Kong
Stock Exchange in October 2013, Nexteer Automotive Group Limited
manufactures steering and driveline systems.  The company has 20
manufacturing plants located across North and South America,
Europe and Asia.

Nexteer is 67.3%-owned by Pacific Century Motors, Inc., which is
in turn 51% owned by AVIC Automobile Industry Holding Co., Ltd.
(AVIC Auto, unrated), and 49% owned by Beijing E-Town
International Investment & Development Co. Ltd. (unrated), which
is controlled by Beijing's municipal government,

AVIC Auto is wholly owned by Aviation Industry Corporation of
China (unrated), a Chinese central government-owned enterprise.

PAPREC HOLDING: Moody's Assigns 'B1' CFR; Outlook Stable
Moody's Investors Service assigned a first-time B1 corporate
family rating and a Ba3-PD probability of default rating to
Paprec Holding (Paprec), the parent company of the Paprec group.
Concurrently, Moody's has assigned a provisional (P)B1 rating,
with a loss given default (LGD) assessment of LGD4, 68% to the
proposed EUR280 million aggregate principal amount of senior
secured notes due 2022 and a (P)B2 (LGD6, 93%) to the proposed
EUR200 million aggregate principal amount of senior subordinated
notes due 2023, both to be issued by Paprec Holding.  The outlook
on the ratings is stable.  This is the first time that Moody's
has assigned ratings to Paprec.

"We assigned a B1 CFR to Paprec to reflect the group's high
leverage and its dependence on the economic and regulatory
environment in France", says Marie Fischer-Sabatie, a Moody's
Senior Vice President and lead analyst for Paprec.

"Nevertheless, the rating also factors in Paprec's position as
the leading pure-play recycling company in France, with a track
record of steady growth and resilient operating performance".

Paprec will use the proceeds from the proposed issuance to (1)
refinance existing debt relating to certain eligible green
projects (i.e., recycling projects) through the repayment of its
existing senior credit facilities, mezzanine facilities and
certain bilateral facilities; (2) pay costs, fees and expenses
incurred in connection with the refinancing transaction; and (3)
any remaining proceeds will be used for general corporate

Moody's issues provisional ratings in advance of the final sale
of securities and these only reflect Moody's opinions regarding
the transaction.  Upon the closing of the refinancing but also
after a conclusive review of the final documentation, Moody's
will endeavour to assign definitive ratings to Paprec.  A
definitive rating may differ from a provisional rating.

All the ratings assume that the refinancing will be completed.

Paprec's B1 CFR factors in (1) the group's high leverage, which
amounted to around 6x on a gross debt basis and around 5x on a
net debt basis (including Moody's adjustments) at year-end 2014;
(2) its dependence on the economic and regulatory environment in
France, representing in excess of 90% of group sales; (3) some
residual exposure to fluctuations in raw materials prices (e.g.
metals) and volumes.

However, Paprec's B1 CFR also reflects (1) the group's wide
offering of recycling services and its diversified customer
portfolio; (2) its well-spread network of 75 processing and
recycling sites across the French territory, which creates
barriers to entry; (3) the positive long-term growth trends of
the recycling industry, which support Paprec's growth; and (4)
the resilient margins that the company is able to achieve through
protective clauses in its waste management contracts, despite
volatile raw material price fluctuations.

Paprec generates revenues from two sources: (1) waste management
services (42% of revenues in 2014), whereby Paprec is remunerated
to collect, process and sort waste to be recycled from industrial
and municipal customers to extract secondary raw materials; and
(2) the sale of secondary raw materials recovered from waste on
the spot market (58% of revenues in 2014). While raw materials
prices can be volatile, Moody's views positively Paprec's ability
to mitigate the effects of fluctuating prices through protective
clauses in its contracts, which has enabled a resilient operating
performance.  The company has nevertheless some residual exposure
to fluctuations in raw materials prices and volumes, as metals
are generally not covered by contracts and volumes not secured in
the contracts Paprec has with its customers.

Paprec operates with large fixed costs and has in recent years
significantly invested in its industrial assets, therefore
increasing its total capacity and enhancing the density of its
network of processing and sorting sites across the French
territory. Although the economic environment remains subdued in
France, Moody's expects the continuing growth of recycled waste
volumes, fueled by favorable regulatory measures (e.g. taxes on
landfilled waste and the proposed "Loi de Transition Energ'tique"
expected to be passed in 2015) and improving recoverability of
secondary raw materials, to increase the group's capacity usage
and have some benefits on its profitability.  Moody's expect this
to drive EBITDA growth and improvements in the group's credit
metrics, which are initially weak for the B1 rating category.
While leverage (i.e. gross debt/EBITDA including Moody's
adjustments) stood at 6x at year-end 2014, Moody's estimate that
it will reduce to below 5.5x within the next 12-18 months,
positioning the company more solidly in its rating category.

Moody's views Paprec's liquidity as adequate. Paprec's liquidity
profile is underpinned by a cash balance amounting to EUR95
million at year-end 2014 and access to a newly-signed EUR100
million revolving credit facility (RCF) due 2021.  Moody's expect
the group to generate positive free cash flow in the next couple
of years, fueled by continued revenue and operating cash flow
growth and lower capex, as well as the absence of dividend
payment. These sources will cover the company's liquidity needs,
comprising debt amortization of approximately EUR40 million
during 2015 (essentially finance leases) and working capital
needs. Seasonality in working capital is moderate with maximum
variations amounting to around EUR20-30 million. Paprec's new RCF
will contain one financial covenant, which will only be tested if
the RCF is more than 30% drawn and under which Moody's expect
Paprec to maintain ample leeway.

Paprec's debt structure comprises a EUR100 million super senior
RCF, as well as EUR280 million aggregate principal amount of
senior secured notes: although the senior secured notes rank pari
passu with the RCF, the RCF has priority in case of collateral
enforcement, hence its ranking ahead of the senior secured notes.
The group's debt structure also comprises EUR200 million
aggregate principal amount of senior subordinated notes, which
rank behind the senior secured notes.

The proposed notes and the super senior RCF benefit from the same
guarantor package including upstream guarantees from some of
Paprec's operating companies, representing around 75% of the
group's EBITDA. Both the senior secured notes and the RCF will be
secured, on a first-priority basis, by the same collateral,
essentially comprising pledges on stock, bank accounts and intra-
group receivables of a number of Paprec's operating companies.
However, the notes will be contractually subordinated to the RCF
with respect to the collateral enforcement proceeds. The senior
subordinated notes will share some of the collateral but will
only be secured on a second-ranking basis.

Moody's has used in its LGD model a recovery assumption of 35%
for Paprec, as its debt structure essentially includes notes and
an RCF with a covenant, which will only be tested if the RCF is
30% drawn and under which Moody's expects the company to maintain
ample leeway. This results in a PDR at Ba3-PD, one notch above
the B1 CFR.

The outlook on Paprec's ratings is stable and reflects Moody's
expectations that the group will improve its financial profile
within the next 12-18 months and strengthen its positioning
within the B1 category, which will initially be fairly weak owing
to high leverage and weak interest cover.

Upward pressure on Paprec's B1 rating could develop if leverage
(i.e., gross debt/EBITDA including Moody's adjustments) reduces
towards 4.5x and EBIT/interest expense increases towards 2x. At
the same time, Moody's would expect the group to maintain
positive free cash flow generation and an adequate liquidity

Downward pressure on Paprec's B1 rating could develop if leverage
does not reduce below 5.5x within the next 12-18 months; if free
cash flow generation turns negative over a prolonged period of
time; or if its liquidity profile weakens. The currently higher
leverage is mitigated by the company's substantial cash balance.

The principal methodology used in these ratings was Environmental
Services and Waste Management Companies published in June 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.

Headquartered in Paris, France, Paprec is a pure-play integrated
recycling company, mainly focused on the collection and
transformation of non-hazardous waste from private and municipal
entities, which are sold as secondary raw materials.  During
FY2014, the group reported revenues of EUR791 million and EBITDA
of EUR98 million.  Paprec was founded in 1984 and bought in 1994
by Jean-Luc Petithuguenin, who remains the current CEO of the

PAPREC HOLDING: S&P Assigns Preliminary 'B+' CCR; Outlook Stable
Standard & Poor's Ratings Services assigned its preliminary 'B+'
long-term corporate credit rating to Paprec Holding, a holding
company for France-based recycling group Paprec.  The outlook is

At the same time, S&P assigned its preliminary 'BB-' issue and
'2' recovery ratings to Paprec's EUR100 million super senior RCF,
preliminary 'B+' issue and '3' recovery ratings to the EUR280
million senior secured notes, and preliminary 'B-' issue and '6'
recovery ratings to the EUR200 million senior subordinated notes.

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

S&P's preliminary rating on Paprec primarily reflects S&P's
forecast of Standard & Poor's-adjusted debt to EBITDA in excess
of 5x and funds from operations (FFO) to debt of about 11%-13% by
year-end 2015.  These expectations incorporate the company's
proposed refinancing of its debt with new senior secured and
subordinated notes.

Under the proposed transaction, the existing financing package
(comprising more than EUR400 million of on-balance-sheet debt and
EUR175 million of mezzanine notes) will be refinanced with EUR200
million of senior secured notes due 2022 and EUR280 million of
senior subordinated notes due 2023.

Following the closing of the transaction, the company's adjusted
debt will also include nearly EUR20 million of bilateral lines,
just over EUR100 million finance leases, asset-retirement
obligations estimated at EUR8 million, pension adjustments of
more than EUR7 million, and guarantees and debt issuance costs in
excess of EUR10 million.

The preliminary rating on Paprec also reflects S&P's view of the
company's small absolute size in the French waste management
sector.  In 2014, Paprec processed about 6 million tons (MT) of
waste (out of 50MT in the French sector as a whole) and generated
just below EUR800 million of revenues and reported EBITDA near
EUR100 million.  This leaves Paprec clearly smaller than the two
other large French players: Veolia (BBB/Negative/A-2) and Suez
Environment.  Further weighing on the group's business risk
profile is the group's focus on the French market, where still-
sluggish macroeconomic prospects could negatively affect
industrial waste volumes.

These weaknesses are somewhat offset by the group's leading
market positions and fairly diversified recycling offering.  It
also has satisfactory coverage of the national territory with a
presence in most industrialized and urban areas, and the sector
has inherently high barriers to entry, including a demanding
process for obtaining official authorizations for new site
openings.  On the strength of the indexation mechanism and with
contracts averaging three-to-five years, the group has been able
to broadly maintain its EBITDA margin at a level of profitability
S&P views as average.  In S&P's view, a supportive French
regulatory framework that encourages a shift in waste processing
from landfill/incineration to recycling will further contribute
to volume growth, although at a gradual pace.

Paprec received an aggregate EUR150 million from two successive
equity injections (in November 2012 and October 2013) from the
French Public Investment Bank (BPI; Banque Publique
d'Investissement).  Of this amount, S&P treats EUR50 million as
surplus cash, as S&P anticipates that Paprec will allocate the
remaining portion to capital spending and further acquisitions.
S&P takes a positive view of Paprec's cash interest coverage of
about 3x and credit metrics at the better end of the range for
its "highly leveraged" financial risk profile assessment.

Although it is neutral to the rating, S&P's assessment of the
financial policy is supported by the group's family ownership,
reinforced by the recent entrance of the BPI as a strategic
investor.  S&P also view the group's management team as
experienced with a clear strategic growth plan.

Paprec's preliminary ratings incorporate an upward adjustment of
one notch under S&P's comparable rating analysis, reflecting its
opinion of its credit characteristics in aggregate relative to
peers, specifically driven by its leverage and interest coverage

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

   -- Revenue growth in excess of 5%, driven by the contribution
      from the acquisitions undertaken during the first half of

   -- Gradually rising EBITDA margin, which it anticipates will
      remain above 12% (which S&P views as average for
      environmental services companies);

   -- Capital expenditure (capex) in the range of EUR60 million-
      EUR70 million, as development capex is likely to return to
      normalized levels of less than EUR30 million annually,
      given spending over the last four years;

   -- Marginal returns to shareholders;

   -- Acquisitions unlikely to exceed EUR30 million per year.

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

   -- Adjusted total debt to EBITDA just above 5x, and

   -- Adjusted FFO to debt of about 11%-13%.

The stable outlook reflects S&P's view that Paprec's EBITDA will
gradually improve in 2015 with further contributions from the
acquisitions Paprec undertook last year.  S&P assumes that EBITDA
margins will remain resilient at more than 12%, given the group's
initiatives over the past three-to-four years to strengthen
capacity and secure satisfactory national coverage.  S&P's base-
case scenario assumes adjusted total debt to EBITDA maintained at
about 5x and cash interest coverage sustainably in excess of

S&P could consider a negative rating action if the acquisitions
Paprec undertook during 2014 do not translate into profitable
growth.  In addition, S&P could lower the ratings if the group
delivered materially negative free operating cash flow as a
result of acquisitions or capital spending to further enhance its
asset base, or if the EBITDA margin significantly deteriorated to
below average levels.  This could arise if macroeconomic
conditions in France were worse than anticipated, leading to a
sharp correction in the growth of waste volumes.

As S&P do not anticipate a substantial deleveraging of the
group's balance sheet over the next 12-18 months, the potential
for a positive rating action is remote.  That said, it could
materialize if EBITDA generation was greater than anticipated,
leading to total debt to EBITDA below 4x and FFO to debt
comfortably above 12%.


VULCAN LTD: Fitch Raises Rating on Class D Notes to 'CCCsf'
Fitch Ratings has upgraded Vulcan (European Loan Conduit No. 28)
Ltd's commercial mortgage-backed floating rate notes due May
2017, as follows:

-- EUR70.0 million class A (XS0314738963): upgraded to 'BBsf'
    from 'Bsf'; Outlook Stable

-- EUR20.6m class B (XS0314739938): upgraded to 'BBsf' from 'B-
    sf'; Outlook Stable

-- EUR73.4 million class C (XS0314740431): upgraded to 'Bsf'
    from 'CCCsf'; Outlook Stable

-- EUR75.2 million class D (XS0314740944): upgraded to 'CCCsf'
    from 'CCsf'; 'RE35%'

-- EUR38 million class E (XS0314741595): affirmed at 'Csf';

-- EUR3 million class F (XS0314742056): affirmed at 'Csf';

-- EUR3 million class G (XS0314742213): affirmed at 'Csf';

Vulcan (European Loan Conduit No.28) is a securitization of
currently seven loans backed by commercial real estate assets
located across Germany and France.


The upgrade of classes A through C reflects the faster-than-
expected recovery from the largest loan, Tishman German Office
Portfolio (TGOP), which has sold or refinanced four of the five
assets in the pool allowing for EUR115 million of proceeds to be
sequentially allocated to the notes. This, along with the
expected full repayment of three other loans (Tishman Hamburg
Office loan, Jargonnant loan and the Henderson Hanau loan), has
allowed the class A note to be reduce by EUR226 million over the
last 12 months.

The TGOP loan, now EUR129 million in size (46% of aggregate loan
balance), is secured by a single office property located in a
decentralized Frankfurt business park predominantly let to GMG
Generalmietgesellschaft mbH, (a subsidiary of Deutsche Telekom
AG, which is rated 'BBB+/Stable').

The scope and scale of the on-going refurbishment and a 10 year
extension of the Deutsche Telekom lease will significantly
improve the property's investment value; however, Fitch still
estimates losses to be incurred given the risk premium likely to
be attached to secondary locations in a difficult Frankfurt
office market.

The EUR66 million Beacon Doublon Paris loan (23% of the pool) is
the second largest loan in the pool and secured by a single
office property located in Courbevoie, Paris near to the prime La
Defense office precinct. After filing for safeguard proceedings
in 2011, the borrower now has until December 2015 to repay. Low
prevailing interest rates have allowed a previous servicer
advance drawing to be repaid and some deleveraging from the
original EUR73.5 million balance.

Whilst well located the asset does suffer from high vacancy (32%)
and a short weighted average lease term of 1.6 years which reveal
the level of asset management (in terms of lease re-gearing and
potential refurbishment) that would be required to enhance
property value to repay the senior loan in full.

Legal final maturity (LFM) of the notes is in May 2017 providing
just over two years to work out the remaining loans. Although
reaching a resolution on all loans within this timeframe is
achievable, many of the loans will require asset management
initiatives and/or piecemeal disposal plans to maximize
recoveries which will put this timeframe to the test. As such,
the rating of the senior notes is constrained by the looming note
maturity and precludes it from achieving investment grade status.

Fitch's estimated 'Bsf' recovery amount is EUR191m.


A high proportion of the underlying assets which secure this CMBS
still require the completion of asset management initiatives
(primarily improving lease profiles and/or refurbishment) in
order to prime them for sale. Should progress not be made on this
front, or there is a clear weakening of demand for non-prime real
estate, a downgrade of the notes is possible.


ALPHA BANK: S&P Retains CCC+ Rating on CreditWatch Negative
Standard & Poor's Ratings Services said that it is keeping its
'CCC+' long-term counterparty credit ratings on Greece-based
Alpha Bank A.E. (Alpha), Eurobank Ergasias S.A. (Eurobank),
National Bank of Greece S.A. (NBG), and Piraeus Bank S.A.
(Piraeus) on CreditWatch with negative implications, where S&P
initially placed them on Jan. 30, 2015.

At the same time, S&P affirmed its 'C' short-term counterparty
credit and subordinated debt ratings on the four banks.

The rating actions follow the announcement that Greece and the
Eurogroup reached an in-principle agreement on the extension of
the Master Financial Assistance Facility Agreement (MFFA) until
the end of June 2015.  In S&P's view, the Greek government and
its official creditors appear, nevertheless, to have a divergence
of views regarding the appropriate policy concessions necessary
for further official funding.  In this context, S&P also believes
that the in-principle agreement does not materially reduce the
uncertainty about whether the European authorities will remain
committed to providing liquidity and capital support for Greek

Following the decision on the extension of the MFFA, S&P
understands that Greek banks remain unable to access the ECB's
main refinancing operations, discounting instruments issued or
guaranteed by the Hellenic Republic, and continue to cover their
refinancing needs by accessing Emergency Liquidity Assistance
(ELA) financing.  Greek banks' ability to continue accessing ELA
facilities remains dependent on the ECB's governing council,
which can restrict ELA operations at any time if it considers
that these operations interfere with the objectives of the
Eurosystem.  S&P expects Greek banks to continue relying heavily
on funding from the central bank.  The ongoing political
uncertainties are likely to continue to render Greek banks'
retail funding bases highly volatile, and could trigger
additional deposit outflows, in S&P's view.

As part of the program extension discussions, European and Greek
authorities agreed that the EUR10.8 billion fund originally
allocated for banks' capital needs would be transferred from the
Hellenic Financial Stability Fund to the European Financial
Stability Fund, while remaining earmarked to exclusively cover
Greek banks' potential capital needs.  Following the transfer,
S&P understands that the ECB is now in charge of authorizing any
disbursement of these funds to recapitalize Greek banks.

In S&P's opinion, Greece's fragile operating environment and
ongoing political uncertainties could further impair the
stability of its banking system.  If this situation continues,
the banks' already weakened performance could deteriorate
further.  It could also affect their underwriting practices,
recovery capacity, and commercial prospects.  As a result, S&P
now sees a negative trend for industry risk in the Greek banking

S&P continues to assess the stand-alone credit profiles (SACPs)
of Alpha, Eurobank, NBG, and Piraeus at 'ccc-'.  The ratings on
the four banks continue to incorporate two notches of additional
short-term support, one in each of S&P's assessments of capital
and liquidity.

The CreditWatch status reflects the possibility that S&P could
lower the long-term ratings on the four Greek banks if S&P
anticipates that they will lose access to the liquidity provided
by the European liquidity support mechanisms, or if S&P foresees
such support being insufficient to meet the four banks' financing

In a worst-case scenario, S&P still considers that reduced
financial stability could result in the imposition of capital
controls.  If capital controls were to be imposed, S&P could
lower the ratings on the four banks.

"We could also lower the ratings if we anticipate that European
authorities will reduce their commitment to provide capital
support to Greek banks.  This could happen if we consider that
funds allocated to cover Greek banks' potential capital needs
were no longer available or sufficient to preserve the banks'
solvency position in line with our estimates.  We currently
incorporate into our ratings that such capital support would be
available to raise the banks' solvency to levels commensurate
with at least a 3% risk-adjusted capital (RAC) ratio before
diversification," S&P said.

Conversely, S&P could affirm the ratings and remove them from
CreditWatch if it believes that the Greek banks will likely
retain permanent and sufficient support from the European
authorities and the ECB in line with what S&P currently
incorporates into its ratings -- specifically in S&P's assessment
of the banks' capital and liquidity -- and that they can meet
their financial commitments in a timely manner.


Alpha Bank A.E.
Eurobank Ergasias S.A
National Bank of Greece S.A.
Piraeus Bank S.A.
Counterparty Credit Rating          CCC+/Watch Neg/C

N.B. This does not include all ratings affected.

SEANERGY MARITIME: Claudia Restis Reports 43% Stake at Dec. 30
In a Schedule 13D filed with the U.S. Securities and Exchange
Commission, Claudia Restis disclosed that as of Dec. 30, 2014,
she beneficially owned 8,707,173 shares of common stock of
Seanergy Maritime Holdings Corp., which represents 43.8 percent
of the shares outstanding.

Also as of that date, Jelco Delta Holding Corp. beneficially
owned 4,440,000 common shares and Comet Shipholding Inc.
beneficially owned 4,267,173 common shares.

Comet Shipholding reported the acquisition of an additional
800,000 shares of Common Stock on Sept. 30, 2014, at a price of
US$0.60 per share, pursuant to a Share Purchase Agreement entered
into among the Company, Plaza Shipholding Corp. and Comet, dated
Sept. 29, 2014.

Jelco Delta Holding Corp. reported the acquisition of 4,440,000
shares of Common Stock on Dec. 30, 2014, at a price of US$0.25
per share, pursuant to a Share Purchase Agreement entered into
between the Company and Jelco dated Dec. 19, 2014.  No borrowed
funds were used to purchase the Acquired Shares, other than funds
borrowed from affiliates of the Reporting Persons used for
working capital purposes in the ordinary course of business.

A full-text copy of the regulatory filing is available at:


                          About Seanergy

Athens, Greece-based Seanergy Maritime Holdings Corp. is an
international company providing worldwide seaborne transportation
of dry bulk commodities.  The Company owns and operates a fleet
of seven dry bulk vessels that consists of three Handysize, two
Supramax and two Panamax vessels.  Its fleet carries a variety of
dry bulk commodities, including coal, iron ore, and grains, as
well as bauxite, phosphate, fertilizer and steel products.

Seanergy Maritime reported net income of US$10.90 million on
US$23.07 million of net vessel revenue for the year ended
Dec. 31, 2013, as compared with a net loss of $194 million on
US$55.6 million of net vessel revenue for the year ended Dec. 31,

Ernst & Young (Hellas) Certified Auditors Accountants S.A., in
Athens, Greece, issued a "going concern" qualification on the
consolidated financial statements for the year ended Dec. 31,
2013.  The independent auditors noted that the Company, as of
December 31, 2013 continued to be in breach of certain terms and
covenants of the loan facility with its remaining lender, and had
a working capital deficit and an accumulated deficit.  Following
the disposal of its entire fleet subsequent to December 31, 2013
in the context of its restructuring plan, the Company is unable
to generate sufficient cash flow to meet its obligations and
sustain its continuing operations.  These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.

As of Sept. 30, 2014, the Company had US$3.13 million in total
assets, US$317,000 in total liabilities and US$2.82 million in
total shareholders' equity.

* Moody's Says Greek RMBS Performance Stable in January 2015
The performance of the Greek residential mortgage-backed
securities (RMBS) market remained stable in January 2015,
according to the latest indices published by Moody's Investors
Service.  However, the outstanding pool balance of Greek RMBS
transactions shrank to EUR2,248 million, a yearly decrease of
around 10.7% compared with EUR2,518 million in January 2014.

The 90+ day delinquencies of Greek RMBS transactions rose to 6.2%
of the current balance in January 2015 from 5.3% in January 2014.
The highest proportion of overall delinquencies comes from Estia
Mortgage Finance II Plc and Themeleion III Mortgage Finance Plc,
standing respectively at 11.59% and 2.33% in January 2015
compared with 10.99% and 1.32%, respectively, in January 2014.
Given that only seven outstanding transactions remain in the
Greek RMBS index, the index is more sensitive to variation in the
collateral performance of individual transaction.

Cumulative defaults increased to 2.2% in January 2015 from 1.9%
in January 2014.  The prepayment rate demonstrated a 3.6%
decrease in the past year.  The early redemption rate of KION
Mortgage Finance Plc contributed the highest portion of the
overall prepayment rate index, at 2.17% in January 2015 compared
with 1.24% in January 2014.

On Feb. 6, 2015, Moody's placed Greece's Caa1 government bond
rating on review for downgrade.  The short-term rating remains
unaffected.  The review for downgrade will focus on the
probability of default on debt issued to the private sector
rising sharply and the situation becoming very difficult for
government to count on very low liquidity buffers based on
current circumstances.

Moody's expects that the renewal of the moratorium announced by
the Greek government in February 2015 on foreclosures for non-
performing mortgage loans that expired at the end of 2014 will
likely increase the 90+ day delinquencies throughout the banking
system.  A renewed moratorium would be credit negative for Greek
RMBS transactions and banks' mortgage portfolios and further
depress already low mortgage recoveries.


DARTRY PARK: Moody's Assigns 'Ba2' Rating on EUR24.5MM D Notes
Moody's Investors Service assigned the following definitive
ratings to notes issued by Dartry Park CLO Limited:

  -- EUR238,000,000 Class A-1A Senior Secured Floating Rate Notes
     due April 2029, Definitive Rating Assigned Aaa (sf)

  -- EUR5,000,000 Class A-1B Senior Secured Fixed Rate Notes due
     April 2029, Definitive Rating Assigned Aaa (sf)

  -- EUR30,000,000 Class A-2A Senior Secured Floating Rate Notes
     due April 2029, Definitive Rating Assigned Aa2 (sf)

  -- EUR12,000,000 Class A-2B Senior Secured Fixed Rate Notes due
     April 2029, Definitive Rating Assigned Aa2 (sf)

  -- EUR24,000,000 Class B Senior Secured Deferrable Floating
     Rate Notes due April 2029, Definitive Rating Assigned A2

  -- EUR21,500,000 Class C Senior Secured Deferrable Floating
     Rate Notes due April 2029, Definitive Rating Assigned Baa2

  -- EUR24,500,000 Class D Senior Secured Deferrable Floating
     Rate Notes due April 2029, Definitive Rating Assigned Ba2

  -- EUR11,500,000 Class E Senior Secured Deferrable Floating
     Rate Notes due April 2029, Definitive Rating Assigned B2

Moody's definitive rating of the rated notes addresses the
expected loss posed to noteholders by legal final maturity of the
notes in 2029.  The definitive ratings reflect the risks due to
defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure.  Furthermore, Moody's
is of the opinion that the collateral manager, Blackstone /GSO
Debt Funds Management Europe Limited, has sufficient experience
and operational capacity and is capable of managing this CLO.

Dartry Park CLO Limited is a managed cash flow CLO.  At least 90%
of the portfolio must consist of secured senior obligations and
up to 10% of the portfolio may consist of unsecured senior loans,
second lien loans, mezzanine obligations, high yield bonds and/or
first lien last out loans.  The portfolio is expected to be 65%
ramped up as of the closing date and to be comprised
predominantly of corporate loans to obligors domiciled in Western
Europe.  This initial portfolio will be acquired by way of
participations which are required to be elevated as soon as
reasonably practicable.  The remainder of the portfolio will be
acquired during the six month ramp-up period in compliance with
the portfolio guidelines.

Blackstone/GSO Debt Funds Management Europe Limited will manage
the CLO.  It will direct the selection, acquisition and
disposition of collateral on behalf of the Issuer and may engage
in trading activity, including discretionary trading, during the
transaction's four-year reinvestment period.  Thereafter,
purchases are permitted using principal proceeds from unscheduled
principal payments and proceeds from sales of credit impaired
obligations, and are subject to certain restrictions.

In addition to the eight classes of notes rated by Moody's, the
Issuer has issued EUR44,600,000 of subordinated notes.  Moody's
has not assigned a rating to this class of notes.

The transaction incorporates interest and par coverage tests
which, if triggered, will divert interest and principal proceeds
to pay down the notes in order of seniority.

Loss and Cash Flow Analysis:

Moody's modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published in
February 2014. The cash flow model evaluates all default
scenarios that are then weighted considering the probabilities of
the binomial distribution assumed for the portfolio default rate.
In each default scenario, the corresponding loss for each class
of notes is calculated given the incoming cash flows from the
assets and the outgoing payments to third parties and
noteholders.  Therefore, the expected loss or EL for each tranche
is the sum product of (i) the probability of occurrence of each
default scenario and (ii) the loss derived from the cash flow
model in each default scenario for each tranche.

Moody's used the following base-case modeling assumptions:

- Par Amount: EUR400,000,000

- Diversity Score: 34

- Weighted Average Rating Factor (WARF): 2750

- Weighted Average Spread (WAS): 4.00%

- Weighted Average Coupon (WAC): 5.75%

- Weighted Average Recovery Rate (WARR): 41.5%

- Weighted Average Life (WAL): 8 years.

Together with the set of modelling assumptions above, Moody's
conducted an additional sensitivity analysis, which was an
important component in determining the rating assigned to the
rated notes.  This sensitivity analysis includes increased
default probability relative to the base case. Below is a summary
of the impact of an increase in default probability (expressed in
terms of WARF level) on each of the rated notes (shown in terms
of the number of notch difference versus the current model
output, whereby a negative difference corresponds to higher
expected losses), holding all other factors equal:

Percentage Change in WARF: WARF + 15% (to 3163 from 2750)

Ratings Impact in Rating Notches:

- Class A-1A Senior Secured Floating Rate Notes: 0

- Class A-1B Senior Secured Fixed Rate Notes: 0

- Class A-2A Senior Secured Floating Rate Notes: -2

- Class A-2B Senior Secured Fixed Rate Notes: -2

- Class B Senior Secured Deferrable Floating Rate Notes: -2

- Class C Senior Secured Deferrable Floating Rate Notes: -2

- Class D Senior Secured Deferrable Floating Rate Notes: -1

- Class E Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3575 from 2750)

Ratings Impact in Rating Notches:

- Class A-1A Senior Secured Floating Rate Notes: -1

- Class A-1B Senior Secured Fixed Rate Notes: -1

- Class A-2A Senior Secured Floating Rate Notes: -3

- Class A-2B Senior Secured Fixed Rate Notes: -3

- Class B Senior Secured Deferrable Floating Rate Notes: -3

- Class C Senior Secured Deferrable Floating Rate Notes: -2

- Class D Senior Secured Deferrable Floating Rate Notes: -1

- Class E Senior Secured Deferrable Floating Rate Notes: -2

Methodology Underlying the Rating Action:

The principal methodology used in this rating was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
February 2014.

The rated notes' performance is subject to uncertainty.  The
notes' performance is sensitive to the performance of the
underlying portfolio, which in turn depends on economic and
credit conditions that may change.  Blackstone/GSO Debt Funds
Management Europe Limited's investment decisions and management
of the transaction will also affect the notes' performance.

DARTRY PARK: Fitch Assigns Final 'B-sf' Rating to Class E Notes
Fitch Ratings has assigned Dartry Park CLO Limited notes final
ratings, as follows:

  Class A-1A: 'AAAsf'; Outlook Stable
  Class A-1B: 'AAAsf'; Outlook Stable
  Class A-2A: 'AA+sf'; Outlook Stable
  Class A-2B: 'AA+sf'; Outlook Stable
  Class B: 'Asf'; Outlook Stable
  Class C: 'BBBsf'; Outlook Stable
  Class D: 'BBsf'; Outlook Stable
  Class E: 'B-sf'; Outlook Stable
  Subordinated notes: not rated

Dartry Park CLO Limited is an arbitrage cash flow collateralized
loan obligation (CLO).


'B'/'B-' Portfolio Credit Quality

Fitch assesses the average credit quality of obligors in the
'B'/'B-' range. The agency has public ratings or credit opinions
on all the obligors in the identified portfolio. The covenanted
maximum Fitch weighted average rating factor (WARF) for assigning
final ratings is 34. The WARF of the identified portfolio is

High Recovery Expectations

The portfolio will comprise a minimum 90% senior secured
obligations. Fitch has assigned Recovery Ratings to the entire
identified portfolio. The covenanted minimum weighted average
recovery rate (WARR) for assigning final ratings is 65.5%. The
WARR of the identified portfolio is 70.6%.

Diversified Asset Portfolio

Unlike other CLO 2.0s, this transaction contains a covenant that
limits the top 10 obligors in the portfolio to 20% of the
portfolio balance. This ensures that the asset portfolio will not
be exposed to excessive obligor concentration.

Limited Interest Rate Risk

Interest rate risk is naturally hedged for most of the portfolio,
as fixed-rate liabilities and assets represent 4.25% and between
0% and 10% of the target par amount, respectively.

Participation Agreement

At closing, the issuer entered into a participation agreement
with Blackstone/GSO Corporate Funding Limited (the seller)
regarding the initial portfolio assets. The seller has granted
the issuer a fixed charge over the initial portfolio assets while
the title is being transferred to the issuer. A fixed charge over
such financial assets is difficult to establish, given the lack
of control. However, Fitch received a legal opinion that the
fixed charge in this case is likely to be upheld, given the
control over the accounts of the seller.


Net proceeds from the notes issue are being used to purchase a
EUR400 million portfolio of mostly European leveraged loans and
bonds. The portfolio is managed by Blackstone/GSO Debt Funds
Management Europe Limited. The reinvestment period is scheduled
to end in 2019.

The transaction documents may be amended subject to rating agency
confirmation or noteholder approval. Where rating agency
confirmation relates to risk factors, Fitch will analyze the
proposed change and may provide a rating action commentary if the
change has a negative impact on the ratings. Such amendments may
delay the repayment of the notes as long as Fitch's analysis
confirms the expected repayment of principal at the legal final

If in the agency's opinion the amendment is risk-neutral from a
rating perspective Fitch may decline to comment. Noteholders
should be aware that confirmation is considered to be given if
Fitch declines to comment.


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


BANCA MEDIOCREDITO: Fitch Cuts LT Issuer Default Rating to 'B'
Fitch Ratings has downgraded Banca Mediocredito del Friuli
Venezia Giulia S.p.A.'s (MFVG) Long-Term Issuer Default Rating
(IDR) to 'B' from 'BBB+'. The Outlook is Stable. At the same
time, Fitch has downgraded MFVG's Short-Term IDR to 'B' from 'F2'
and Support Rating (SR) to '4' from '2'. MFVG's Viability Rating
(VR) has been affirmed at 'b'.

The downgrades reflect a revision of Fitch's assessment of the
likelihood of extraordinary support from the bank's public
shareholder. MFVG's Long-term IDR has been downgraded to the
level of its VR and therefore now reflects the bank's standalone
creditworthiness. MFVG's Long-Term IDR was previously based on


The downgrade of MFVG's SR to '4' follows the revision of Fitch's
assessment of the probability of extraordinary support if needed
from the bank's main public shareholder -- the Autonomous Region
of Friuli Venezia Giulia (A/Stable/F1), which holds a 54.99%
stake in the bank. Fitch believes that in the event of severe
stress, there would be significant uncertainties about the
adequacy of support made available because of potential
limitations arising from the Bank Recovery and Resolution
Directive (BRRD) and EU state-aid considerations.

The SR of '4' continues to reflect MFVG's important role for the
public sector in its home region and Fitch's opinion that some
potential remains for the public shareholder to provide
extraordinary support, either directly or through its network of
subsidiaries, affiliates and regional relationships in general
without triggering state-aid considerations, or from January
2016, the need for bail-in of senior creditors (once BRRD's bail-
in tool is effective). The region considers MFVG as a vehicle for
pursuing its economic policies. Fitch believes MFVG will remain a
key institution for the funding of the local corporate sector's

Fitch believes it would be difficult for a capital increase from
the bank's public shareholder to be made if the private
shareholders did not also participate without triggering state
aid and bail-in considerations. This became apparent in the
banks' most recent capital increase in 2014. Fitch also
understands that the capital injection from the public
shareholder cannot exceed the proportion it already holds in the
bank and that ownership by private shareholders must remain
material. In Fitch's view, it would be difficult to argue the
private investor test condition for extraordinary public sector
support if private investors demonstrated that they were
unwilling to provide support.

MFVG's SR remains sensitive to a change in its strategic
importance to its public shareholder, including the hypothetical
case of a change in the ownership structure. The ability of the
main shareholder to support MFVG is indicated by its Long-term
IDR, which is two notches higher than Italy's sovereign rating,
reflecting its strong financial flexibility.


MFVG's IDRs are now driven by its VR. MFVG's VR of 'b' reflects
the bank's very weak asset quality, which suffers from the legacy
of the past expansion outside the bank's home territory where the
bulk of impaired loans was originated, as well as its weak
profitability and capitalization.

MFVG's asset quality deteriorated further in 2014, albeit at a
slower pace. The stock of gross impaired loans amounted to a high
32% of gross loans at end-1H14 with loan loss reserves of 40%
which although improving, remain relatively low. Impaired loans
are likely to grow further in 2015 but at a slower pace. However,
these will remain among the highest in relation to gross loans in
the universe of Italian banks rated by Fitch.

The bank's profitability has historically been low, reflecting
its role as vehicle for the provision of long-term financing to
corporates in its home region. MFVG recorded cumulated net losses
in 2013 and 2014 of above EUR90 million equal to more than 75% of
its end-2014 common equity Tier 1 capital. While MFVG continued
to report losses throughout 2014, underlying profitability is
gradually recovering, mainly supported by lower loan impairment
charges and the reduced cost of funding which underpins some
growth in net interest income. Fitch believes further
improvements are possible in 2015 although a return to profit is
unlikely before 2016-2017.

MFVG's capital was strengthened in 2014 through the EUR35.6
million capital increase and the issuance of a EUR50 million Tier
2 subordinated debt subscribed by an institutional investor
together resulting in a CET1 ratio of 11.93% and a total capital
ratio of 15.33% at end-2014. Fitch believes that MFVG's capital
remains extremely vulnerable to the risk of sudden unexpected
losses, as happened in the recent past. Unreserved impaired loans
at end-1H14 equaled more than 160% of the bank's CET1 capital at

Customer deposits increased to above 50% of non-equity funding at
1H14 but remain highly concentrated. The concentration is in part
mitigated by large depositors being part of the region's
subsidiaries network. Fitch expects that the region would provide
operational liquidity support to the bank, if needed, either in
the form of deposits or guarantees for MVFG's funding from third

MFVG's senior debt ratings are aligned with the bank's Long-term
IDR and subject to the same sensitivities. Fitch has assigned a
Recovery Rating of 'RR4' to the bank's senior unsecured debt
reflecting Fitch's assessment of average recovery prospects in a
liquidation scenario.


The bank's VR is sensitive to a further deterioration of its
asset quality and capitalization. An upgrade of the VR would
require a material improvement in asset quality and profitability
and stronger liquidity, which Fitch does not expect in the near
future. Conversely, any further material deterioration of the
asset quality threatening the bank's capital would be negative
for the VR. A sudden drop of customer funding challenging the
bank's liquidity would also put the VR under pressure.


The Stable Outlook reflects Fitch's expectations of a slowdown in
the pace of asset quality deterioration and a gradual recovery of
the bank's profitability, amid more adequate capital levels than
in the recent past.

An upgrade of MFVG's VR would result in an upgrade of MFVG's
Long-Term IDR and senior debt ratings, all else being equal. If
the VR was downgraded, MFVG's IDRs and senior debt ratings would
remain unchanged in the absence of a further weakening of Fitch's
assessment of support and, in the case of the senior debt
ratings, in the absence of a change in the balance sheet
structure that would place senior unsecured debt holders in a
weaker position than currently reflected by the 'RR4' Recovery
Rating. This is because according to Fitch's criteria, the
minimum Long-term IDR floor corresponding to a SR of '4' is 'B',
which is aligned with MFVG's Long-term IDR.

The rating actions are as follows:

  Long-term IDR: downgraded to 'B' from 'BBB+'; Outlook Stable

  Short-term IDR: downgraded to 'B' from 'F2'

  Viability Rating: affirmed at 'b'

  Support Rating: downgraded to '4' from '2'

  Senior Debt Ratings: Long-term rating downgraded to 'B' from
  'BBB+'; Short-term rating downgraded to 'B' from 'F2'; Recovery
  Rating of 'RR4' assigned

MEDIOCREDITO TRENTINO: Fitch Lowers IDR to 'BB-'; Outlook Stable
Fitch Ratings has downgraded Mediocredito Trentino Alto Adige
S.p.A.'s (MTAA) Long-Term Issuer Default Rating (IDR) to 'BB-'
from 'BBB+'.  The Outlook is Stable.  At the same time, Fitch has
downgraded MTAA's Short-Term IDR to 'B' from 'F2' and the Support
Rating (SR) to '4' from '2'.  MTAA's Viability Rating (VR) has
been affirmed at 'bb-'.

The downgrades reflect a revision of Fitch's assessment of the
likelihood of extraordinary support from the bank's public
shareholders.  MTAA's Long-term IDR has been downgraded to the
level of its VR and therefore now reflects the bank's standalone
creditworthiness.  MTAA's Long-Term IDR was previously based on


The downgrade of MTAA's SR to '4' follows the revision of Fitch's
assessment of the probability of extraordinary support if needed
from the bank's three main public shareholders -- the Autonomous
Province of Trento (A/Stable/F1), the Autonomous Province of
Bolzano (A/Stable/F1) and the Region of Trentino Alto Adige,
which jointly hold a 52.5% stake in the bank.  Fitch believes
that in the event of severe stress, there would be significant
uncertainties about the adequacy of support made available
because of potential limitations arising from the Bank Recovery
and Resolution Directive and EU state-aid considerations.

The SR of '4' continues to reflect MTAA's important role for the
public sector in its home region and Fitch's opinion that some
potential remains for public shareholders to provide
extraordinary support, either directly or through their network
of subsidiaries, affiliates and regional relationships in general
without triggering state-aid considerations, or from January
2016, the need for bail-in of senior creditors (once BRRD's bail-
in tool is effective).  The provinces consider MTAA as a vehicle
for pursuing their economic policies.  Fitch believes MTAA will
remain a key institution for the funding of the local corporate
sector's investments.  MTAA's franchise and commercial presence
also benefits from the close links with the local mutual banking
sector (Banche di Credito Cooperativo; BCC) which holds 36.6% of
MTAA's capital.  MTAA provides products and services, typically
medium- to longer-term loans to clients of the BCCs.

Given the agreement between the shareholders, Fitch believes it
would be difficult for a capital increase from the bank's public
shareholders to be made if the private shareholders did not also
participate without triggering state aid and bail-in
considerations.  Fitch also understands that the capital
injection from the public shareholders cannot exceed the
proportion they already jointly hold in the bank and that
ownership by private shareholders must remain material.  In
Fitch's view, it would be difficult to argue the private investor
test condition for extraordinary public sector support if private
investors demonstrated that they were unwilling to support.

MTAA's SR remains sensitive to a change in the strategic
importance of MTAA to its public shareholders, including the
hypothetical case of a change in the ownership structure.  The
ability of the main shareholders to support MTAA is indicated by
their Long-term IDRs, which (with the exception of unrated
Autonomous Region of Trentino Alto Adige) are two notches higher
than Italy's sovereign rating, reflecting their strong financial


MTAA's IDRs are now driven by its VR.  The VR of 'bb-' primarily
reflects MTAA's company profile, with its small size and limited
franchise dominating its financial profile.  The bank's weak
asset quality, with the bulk of impaired loans originated in the
past outside the bank's home region of Trentino Alto Adige, also
constrains the rating, although this is showing signs of
stabilization.  The VR also reflects MTAA's weak profitability,
which Fitch expects to marginally recover in the medium term.
Its dependence on wholesale funding is at least partly mitigated
by access to ordinary liquidity from its shareholders, and its
acceptable capitalization is beneficial for the rating.

MTAA operates as a provider of longer-term lending to the
corporate sector.  Asset quality deterioration slowed down
materially in 2014 but overall asset quality remains weak.
MTAA's gross impaired loans increased only slightly to 15.9% of
gross loans at end-1H14 (14.9% at end-2013), although the
riskiest component (sofferenze) surged to a high 59% of the stock
of impaired loans.  Loan loss reserve coverage at 35% at the same
date remains weak, in Fitch's view.  Including coverage offered
by collateral, management assesses total problem loans to be
fully covered at end-2014, but collateral is in the form of real
estate and remains exposed to the risks of a drop in value and
long disposal processes.  The absence of a domestic secondary
market for the disposals of doubtful loans and long court
proceedings add to the difficulties of managing increasing stocks
of impaired loans for Italian banks.

Lending to real estate and construction sectors has been reducing
progressively, signaling a more prudent risk appetite.  Sovereign
exposure was a material 19% of total assets at end-1H14.

The profitability of MTAA's core lending business continued to
suffer in 2014.  Gains on the disposal of available-for-sale
securities supported the bank's operating profitability, but
Fitch considers this a volatile source of income.  Fitch expects
marginal improvements in profitability in 2015, reflecting an
expected moderate economic recovery of the bank's home
territory -- where growth tends to be higher than the national
average -- and the stabilization of asset quality.  MTAA's weak
profitability partly reflects its role as a regional development
bank and vehicle for the provision of long-term financing to
BCCs' clients. Earnings sources are not diversified as medium and
long-term lending remains the bank's main business.

The bank relies on wholesale funding, which on average accounted
for about 90% of non-equity funding in the past two years.  ECB
funding, totaling roughly a quarter of total assets at end-2014,
is mainly long term.  Liquidity is underpinned by a portfolio of
unencumbered ECB eligible assets corresponding to about 10% of
the bank's total assets, which we consider sufficient.  In
addition, Fitch expects that the bank's public and private
shareholders would provide ordinary support to underpin liquidity
if needed. This could take the form of deposits or purchase of
bonds issued by MTAA, directly or through the provinces'
subsidiaries, which include Cassa del Trentino (A/Stable/F1).

The bank's capitalization with a Fitch core capital/risk-weighted
assets ratio of 15.6% at end-1H14, was only just acceptable given
its small size and the encumbrance of core capital by unreserved
impaired loans (equal to 71% at the same date).


The Stable Outlook reflects Fitch's expectations that asset
quality has stabilized, reducing earnings pressure from loan
impairment charges.  MTAA's IDRs and VR may be upgraded if there
is a material improvement in asset quality.  Conversely higher
than expected deterioration of asset quality with growing loan
impairment charges would lead to a downgrade.

The VR is also sensitive to changes in the bank's liquidity.
Weaker ordinary access to funding from public sector shareholders
or the local mutual sector, materially challenging the bank's
funding structure and costs, would put the VR under pressure.


DTEK ENERGY: Fitch Cuts Long-Term Issuer Default Ratings to 'C'
Fitch Ratings has downgraded Ukraine-based DTEK Energy B.V.'s
Long-term foreign and local currency Issuer Default Ratings (IDR)
to 'C' from 'CCC'.

The Long-term IDRs downgrades to 'C' indicate that default is
imminent, due to the company's very weak liquidity profile.


Imminent Refinancing Risk

The 'C' IDRs indicate that default is imminent. DTEK faces
imminent liquidity risk as its cash position is not sufficient to
cover onerous short-term maturities in 2015. The company's cash
position of USD341 million as of end-2014 was well below its
short-term maturities of USD598 million due in 2015 and USD641
million due in 2016 (excluding revolving lines and letters of
credit in the amount of USD416 million), which include the
remaining USD200m portion of its USD500m eurobonds due on April
28, 2015.

Foreign Currency Exposure

DTEK is exposed to high foreign currency fluctuations risk, as
most of its debt is denominated in foreign currencies, i.e. US
dollar (63% of total debt at end-2014), euro (27%) and rouble
(2%). This contrasts with less than 10% of its revenue in US
dollar in 2014, while most of its remaining revenue is
denominated in hryvna.  An increase of the economic and political
uncertainty in Ukraine has led to significant hryvna devaluation
against major currencies (hryvna has lost 97% against the US
dollar in 2014 and additional 38% so far in 2015).  The company
does not fully hedge its FX risks. However, more than 70% of its
cash is kept in US dollar and euro.

High Exposure to Local Banks

DTEK's liquidity position is weakened by its high exposure to
domestic banks. In our analysis we assumed a portion of cash held
at the Ukrainian banks as restricted, due to the banks' low
credit quality, and estimated unrestricted cash at UAH5.4 billion
(USD341 million) as of end-2014.
In addition, a significant portion of cash is kept at First
Ukrainian International Bank, which is owned by SCM, DTEK's
parent company.

Breach of Covenants

Continued hryvna devaluation resulted in certain financial
covenants being breached as of 31 December 2014 under a number of
facility agreements of the company. For the avoidance of
occurrence of events of default under relevant facilities DTEK
has approached its creditors in advance with waiver and consent
requests covering the issues related to breach of financial
ratios. As at end-2014, DTEK has obtained waivers covering the
breach of covenants from a number of the lenders, and is
continuing the work to obtain such waivers from the rest of the
lenders. However, these covenants breach will not constitute an
event of default as they are not maintenance covenants. Financial
covenants (i.e. consolidated leverage ratio) as per the eurobonds
documentation restrict DTEK's ability to incur additional debt,
except for certain types of permitted indebtedness. Additionally,
the bonds indenture includes a cross-acceleration clause
provision, which is applicable to the extent the acceleration of
other financial indebtedness (subject to certain thresholds)
takes place.

Political Instability

The on-going political and economic uncertainty -- Fitch is
forecasting a 5% decline in Ukraine's GDP and 26% inflation
increase for 2015 -- is likely to continue to have a material
adverse impact on DTEK's credit metrics. Although assets located
in Donetsk and Lugansk regions account for a significant part of
DTEK's EBITDA and revenue, the company assesses its exposure to
the conflict area as much smaller. Moreover on January 21, 2015,
Crimea authorities passed a resolution to expropriate the
property of DTEK's subsidiary Krymenergo located in the region.
However, DTEK's exposure to Crimea is limited as its electricity
distribution in Crimea accounted for less than 3% of revenue and
around 2% of EBITDA in 2014.

Profitability Continues to Deteriorate

Despite economic deterioration in Ukraine, DTEK manages to
demonstrate almost stable financial performance in hryvna, with
2014 revenue up 0.2% yoy and EBITDA down only 4% yoy, based on
Fitch estimates. However, EBITDA margin in 2014 declined further
to 15%, from almost 16% in 2013 and 20% in 2012. Fitch expects
margins to remain under pressure in 2015 as the recently approved
tariff increase is likely to be offset by the forecasted cost

On-going Reorganization

DTEK is in the process of reorganization and in 2014 it spun off
its newly-acquired gas company and its electricity renewables
generation and re-named the group from DTEK Holdings B.V. to DTEK
Energy B.V. The final corporate reorganization is aimed at
separating the different businesses within the group and at
deleveraging the newly formed DTEK Energy, which will include
coal, thermal power plants and electricity distribution assets.
As of end-2014 DTEK Renewables' debt was consolidated under DTEK
Energy B.V., Fitch has therefore not excluded the debt of
renewable energy company and oil and gas division from DTEK's
gross debt.

Ukraine's Leading Utilities Company

DTEK's ratings are supported by its leadership in coal mining,
power and heat generation, electricity distribution and sales
among Ukraine's utility companies. With installed electric
capacity of around 19 gigawatts at end-2014, DTEK ranks among the
largest Fitch-rated CIS power utilities. Fitch believes that DTEK
will continue to occupy the leading position among private
Ukrainian utility companies for at least the medium term. Its
vertical integration in coal mining, power generation and
distribution supports its profitability.


Fitch's key assumptions within our rating case for DTEK include:

-- GDP decline in Ukraine by 5% and inflation increase by 26% in

-- Electricity consumption to decline faster than GDP decline

-- Electricity tariffs to increase well below inflation, with
    export electricity tariffs to increase as a result of further
    UAH devaluation

-- Expected refinancing of short-term maturities

-- Debt split by FX assumed to be in line with 2014 breakdown

-- Capital expenditure broadly at 2014 levels


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

-- Failure by the company to secure refinancing of the eurobonds
    and short-term bank maturities in the coming weeks

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

-- Successful refinancing of short-term maturities

-- Achievement of a more sustainable liquidity profile with
    manageable short-term debt levels

-- Improvement of the macro-economic environment along with
    improvement of the company's accounts receivables management

Full List of Rating Actions

DTEK Energy B.V.

   Long-term foreign and local currency IDRs: downgraded to 'C'
   from 'CCC'

   Short-term foreign and local currency IDRs: affirmed at 'C'

   National Long-term rating: downgraded to 'C(ukr)' from 'BBB-

   Foreign currency senior unsecured rating: downgraded to 'C'
   from 'CCC', Recovery Rating 'RR5'

   National senior unsecured rating: downgraded to 'C(ukr)' from

DTEK Finance B.V.

   Foreign currency senior unsecured rating: downgraded to 'C'
   from 'CCC', Recovery Rating 'RR5'

DTEK Finance plc.
   Foreign currency senior unsecured rating: downgraded to 'C'
   from 'CCC', Recovery Rating 'RR5'


COPEINCA AS: Fitch Raises Foreign Currency IDR to 'BB-'
Fitch Ratings has upgraded the ratings for Copeinca AS and its
wholly owned subsidiary Corporacion Pesquera Inca SAC as follows:

Copeinca AS

-- Foreign Currency Issuer Default Rating (IDR) to 'BB-'from
    'B+'; Outlook to Negative from Stable.

Corporacion Pesquera Inca SAC

-- Foreign Currency IDR to 'BB-'from 'B+'; Outlook to Negative
    from Stable;

-- USD250 million senior unsecured notes to 'BB-' from 'B+/RR4'.


Fitch has upgraded the ratings of Copeinca AS and its wholly-
owned subsidiary Corporacion Pesquera Inca SAC (collectively,
Copeinca) due to the integration and strategic ties with its
parent company, China Fishery Group Limited (CFG) (rated
'BB-' with a Negative Outlook by Fitch), which is in process to
redeeming Corporacion Pesquera Inca SAC's senior unsecured notes.

The upgrade to 'BB-' incorporates the strong parent subsidiary
linkage between Copeinca and CFG (rated 'BB-'; Negative Outlook)
based on its strong operational and strategic ties. Copeinca is
fully-owned by CFG and represents about 41% of total CFG EBITDA
as of FYE14.

Fitch will withdraw Copeinca's ratings and will not provide any
more coverage on the company once the bond is fully repaid. Fitch
will continue to maintain the ratings of CFG.


PORTO CITY: Fitch Affirms 'BB+' Issuer Default Rating
Fitch Ratings has affirmed the City of Porto's Long-term foreign
and local currency Issuer Default Ratings (IDR) at 'BB+'.  The
Outlooks are Positive.  The Short-term foreign currency IDR has
been affirmed at 'B'.


Porto's ratings reflect the strong monitoring of the central
government and Porto's ability to post a healthy operating margin
as well as its moderate debt.  The ratings also take into account
the prudential management and the fact that Porto functions as a
service centre in the region of North of Portugal.  The Positive
Outlook reflects that on Portugal's ratings (BB+/Positive).

The central government oversees cities' accounts and budgets
while the national Court of Accounts approves financial
liabilities.  The limited role of the intermediate tiers of
government (province and region) in Portugal strengthens the link
between central government and the cities.  Nevertheless, the
sovereign rating has an indirect impact on Fitch's assessment of
the Portuguese institutional framework.

In this still complex economic environment, Porto has
demonstrated its ability to maintain a high operating margin,
always above 17%, since 2009.  The city has also been able to
post a surplus before debt variation, in part due to its ability
to adjust capital expenditure.  In 2013 the city reported a
surplus equivalent to 4.6% of its total revenue, while in the
past three years the surplus before debt variation was EUR27
million.  The 2014 preliminary accounts confirm a consistent
performance with the expected operating margin exceeding 20%, due
to strengthening of tax collection over the year.

Porto reduced outstanding debt to EUR97 million in 2013,
representing 63% of its current revenue.  According to
preliminary results, in 2014 the city kept its deleveraging
policy so total debt reduced to EUR87.3 million.  The city's
administration has implemented measures to improve its
efficiency.  It currently has about 2500 employees, down from
over 3,500 employees in 2001.

Fitch considers that the city has a prudent policy regarding
finances, with numerous decisions to curb spending when tax
revenues were decreasing.  The council has also opened the
renovation of the city centre to the private sector.  This
approach is further demonstrated by the fact that the city has
outperformed the initial budget since 2010, sometimes
significantly.  Under Fitch's base case scenario, we expect the
city to post an operating margin above 18% in the medium term, in
line with that recorded in 2011-2013.

The 2015 budget is based on a prudent operating revenue forecast,
and discipline in managing spending, with the intention to
further reduce debt to well below 60% of current revenues.  The
city's budget indicates that its current balance would be around
EUR15 million, and if this budget materializes, the city would
still have a current margin of 10%.

With an estimated population of 0.237 million in 2014, the City
of Porto is the second largest cultural, administrative and
economic Portuguese centre, where about 0.5 million people have
their daily activities.  Porto is the business centre of a
greater metropolitan area that comprises 14 municipalities with
1.5 million inhabitants.  The city is wealthy and attractive,
with a lot of potential, particularly in tourism thanks to its
unique features in its historical centre that was classified by
the UNESCO as World Cultural Heritage in 1996.  The city's key
responsibilities are nursery and primary education; civil
protection and police; housing and environmental protection;
street lighting and urban equipment.


If the sovereign ratings were upgraded, it is likely that Fitch
would upgrade Porto's ratings, provided that the city's
fundamentals remain sound.

Porto could be downgraded in case of drastic deterioration of
budgetary performance, which Fitch considers unlikely in the
medium term.


ARMONIA CENTER: Put Up for Sale for EUR7MM; APS Among Creditors
Cristi Moga, writing for Ziarul Financiar reports that Czech
Republic-based debt recovery specialist APS that bought a large
chunk of the non-performing loan portfolio of Austria's
Volksbank's subsidiary in Romania last summer has also become a
creditor of former Armonia Center mall in Braila.

The liquidators are trying to sell the mall for at least EUR7
million plus VAT, Ziarul Financiar discloses.


ISR TRANS: Moody's Withdraws 'Caa1' Corporate Family Rating
Moody's Investors Service has withdrawn ISR Trans LLC's corporate
family rating of Caa1 and probability of default rating of Caa2-
PD.  At the time of withdrawal, all the aforementioned ratings
carried a negative outlook.

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

ISR TRANS: Moody's Withdraws '' LT NS Corp. Family Rating
Moody's Interfax Rating Agency has withdrawn ISR Trans LLC's long-term national scale corporate family rating (NSR).
Moody's Interfax is majority-owned by Moody's Investors Service

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

Moody's Interfax Rating Agency's National Scale Ratings (NSRs)
are intended as relative measures of creditworthiness among debt
issues and issuers within a country, enabling market participants
to better differentiate relative risks.  NSRs differ from Moody's
global scale ratings in that they are not globally comparable
with the full universe of Moody's rated entities, but only with
NSRs for other rated debt issues and issuers within the same
country. NSRs are designated by a ".nn" country modifier
signifying the relevant country, as in ".ru" for Russia. For
further information on Moody's approach to national scale
ratings, please refer to Moody's Rating Methodology published in
June 2014 entitled "Mapping Moody's National Scale Ratings to
Global Scale Ratings".

Moody's Interfax Credit Rating Agency (MIRA) specializes in
credit risk analysis in Russia. MIRA is a joint-venture between
Moody's Investors Service, a leading provider of credit ratings,
research and analysis covering debt instruments and securities in
the global capital markets, and the Interfax Information Services
Group. Moody's Investors Service is a subsidiary of Moody's
Corporation (NYSE: MCO).

MTS BANK: Fitch Affirms 'b-' Viability Rating
Fitch Ratings has affirmed PJSC MTS Bank's (MTSB) Viability
Rating (VR) at 'b-'.


MTSB's 'b-' VR is driven by the bank's weak asset quality,
performance and strategy execution.  However, the rating is
supported by the still reasonable capital buffer following an
equity contribution in 4Q14, positive pre-impairment
profitability on a cash basis and an adequate liquidity position
underpinned by significant and rather cheap funding from its
parent, Sistema Joint Stock Financial Corp. (Sistema; BB-/RWN)
and affiliated entities.

MTSB's asset quality is weak with non-performing (NPLs, including
all loans over 90 days) and restructured loans of 25% and 5%,
respectively, at end-2014 (19% and 3% at end-2013).  Together
these were reserved by only 69%, with the unreserved portion
equal to 44% of Fitch core capital (FCC).

Most problems stem from the unsecured retail cash loan portfolio
(about one-third of total loans), as reflected by their NPL
origination (calculated as net increase in NPLs plus write-offs
divided by average performing loans) of 47% in 2014,
significantly higher than the average for Fitch-rated Russian
retail banks.  In 2014 the bank slowed its retail loan expansion
to 7% from a high 52% in 2013.  However, Fitch believes that not
all problems have yet crystallized in the unsecured retail book,
and further credit losses are likely in 2015.

Corporate loans (half of total loans) contributed about one-third
of NPLs originated in 2014.  Fitch's review of the 25 largest
borrowers, accounting for about half of the total corporate loan
book, revealed that at least two of these (or about 6% of loans),
although not classified as either NPLs or restructured, are
potentially risky as they are extended to highly leveraged
borrowers, which could be particularly vulnerable to the

Although MTSB's capital ratios improved following the recent
equity injection (FCC ratio of approximately 18.7% and total
regulatory ratio of 17.6% at end-2014), these are undermined by
weak asset quality.  The bank could have increased its statutory
loan impairment reserves to 35% of (unconsolidated) loans at end-
2014 from the actual level of 25% before its regulatory capital
adequacy ratio would fall to the regulatory minimum of 10%.  This
would be sufficient to fully reserve current NPLs but not the
restructured loans or any new potential problems.  The bank may
access RUB7.2 billion of Tier 2 capital under the government
recapitalization program through the Deposit Insurance Agency and
get a further RUB4 billion equity injunction from shareholders
(combined, these would be equal to 6.6% of current risk-weighted

The bank was deeply loss making in 2014 and showed further losses
in January 2015 based on regulatory accounts.  Profitability is
unlikely to improve significantly in the near term due to weak
asset quality and the difficult operating environment.

MTSB's liquidity position is a rating strength, supported by
significant related party funding (43% of liabilities at end-
2014).  The bank has a solid level of highly liquid assets (cash,
non-restricted short-term bank placements and repoable
securities) sufficient to cover around 66% of MTSB's third-party
funding at end-2014.  The bank experienced significant outflows
in 3Q14 when Sistema's major shareholder was temporarily put
under house arrest and in 4Q14 due to general market turbulence,
but received extra funding from related parties to support


A marked deterioration in the capital position as a result of
further asset quality problems and operational losses could lead
to a downgrade of the VR.  The VR could stabilize at its current
level in case of a stabilization of the operating environment and
from improvements in assets quality, resulting in stronger
financial performance.


Fitch will review the support driven ratings of MTSB shortly
after review of the ratings of its parent, Sistema.  Any rating
actions on the parent's Long-term IDRs would likely result in
similar actions on MTSB's ratings.

The rating actions are:

Long-term IDR of 'B+'; RWN, unaffected

Short-term IDR of 'B', unaffected

National Long-term Rating of 'A-(rus)'; RWN, unaffected

Viability Rating affirmed at 'b-'

Support Rating of '4'; RWN, unaffected

Senior unsecured debt of 'A-(rus)', unaffected

NIZHNIY NOVGOROD: Fitch Revises Outlook to Neg. & Affirms BB IDR
Fitch Ratings has revised Russian Nizhniy Novgorod Region's
Outlook to Negative from Stable and affirmed its Long-term
foreign and local currency Issuer Default Ratings (IDRs) at 'BB',
National Long-term rating at 'AA-(rus)' and Short-term foreign
currency IDR at 'B'.

Nizhniy Novgorod Region's outstanding senior unsecured domestic
bonds have been affirmed at 'BB' and 'AA-(rus)'.


The revision of the Outlook to Negative from Stable reflects
growing direct risk accompanied by high refinancing pressure.
Increased interest rates on market debt place additional strain
on the interest costs, significantly weakening the region's
current balance.

The Outlook revision reflects the following rating drivers and
their relative weights:


The region's refinancing risk is high.  During 2015-2017 it has
to redeem 91% of direct risk.  In 2015 the region faces repayment
of RUB37.9 billion (58% of total direct risk), of which RUB29
billion is short-term bank loans.  Fitch does not expect the
region will have problems rolling over the debt due to its strong
relationships with state-owned commercial banks and committed
credit lines, which cover around 50% of refinancing needs.  The
risk is around increased market rates, which will make debt
servicing more expensive and eventually lead to a significant
deterioration of the current balance.  The region plans to
continue using short-term federal budget loans within the
financial year, which could partially mitigate the pressure on
interest costs.

Fitch expects the region's direct risk will continue to increase
gradually over the medium term to exceed 70% of current revenue
in 2017.  The administration plans to limit both operating and
capital spending to control the budget deficit.  Fitch assumes
that some limitation is possible, but also believes that the
region's capex will remain higher than the national average as it
will need to prepare for the World Football Championship to be
held in Nizhniy Novgorod in 2018.  Most of the funding will come
from the federal budget, but the region will need to co-finance
several items.

The direct risk increased to 58.5% of current revenue in 2014
(2013: 55%).  The region stopped issuing domestic bonds in 2014
due to the unstable situation on the capital market and instead
borrowed short-term loans from banks at end-2014 to finance the
deficit.  During 2014, the region actively used short-term (up to
30 days) federal budget loans provided to the Russian regions at
0.1% interest rate to cover temporary cash mismatches.  This
allowed the region to save on interest payments.


Fitch expects the region's operating performance to remain
satisfactory in 2015-2017 with an operating balance at around 5%-
6% of operating revenue.  The current balance will further
deteriorate and hover around zero over the medium term,
reflecting increasing interest payments.  In 2014, the operating
balance accounted for 6.9% of operating revenue deteriorating
from 10% in 2013 due to continuous pressure on operating
expenditure stemming from presidential decrees on increasing
salaries to public employees.

Nizhniy Novgorod has a strong and well-diversified economic
sector with wealth metrics above the national median.  According
to preliminary data, the GRP increased by 1% yoy in 2014, which
is only marginally better than the national weak growth of 0.6%.
The agency expects that the unfavorable macroeconomic trend will
have a negative impact on the region's industrialized economy.
According to Fitch's projections, national GDP will decline by 4%
in 2015.  The regional administration is more optimistic, and
expects the regional economy will demonstrate 2% growth in 2015.


An increase in direct risk to above 70% of current revenue
accompanied by on-going refinancing pressure or inability to
maintain sustainable positive current balance could lead to a

PENZA REGION: Fitch Affirms 'BB' IDR; Outlook Positive
Fitch Ratings has affirmed Russian Penza Region's Long-term
foreign and local currency Issuer Default Ratings (IDRs) at 'BB',
with Positive Outlooks, and its Short-term foreign currency IDR
at 'B'.  The agency has also affirmed the region's National Long-
term rating at 'AA-(rus)' with Positive Outlook.


Fitch expects the region will continue to demonstrate a sound
budgetary performance over the medium term.  The operating
balance will account for 12%-13% of operating revenue in
2015-2017 in line with actual results for 2014, when it amounted
to 13.3%.  The strong operating performance will be supported by
the control of operating expenditure and moderate growth of
operating revenue. The largest regional taxpayers include several
enterprises related to the food industry, which are non-cyclical
and will support the regional tax base amid the national
macroeconomic downturn.

Fitch assumes the deficit before debt will not exceed 4% of total
revenue in 2015 supported by the limitation of capital
expenditure.  Fitch expects capital expenditure will decline to
an average 12% of total spending annually in 2015-2017 from a
high average of 25% in 2013-2014.  In 2014, the budget deficit
fell sharply to 2% of total revenue after a peak of 15% one year
earlier.  The exceptionally high deficit in 2013 was driven by
infrastructure modernization in the City of Penza for its 350
year anniversary in September 2013.

In Fitch's view, direct risk will stabilize in the range of 50%-
55% of current revenue over the medium-term.  In 2014 the direct
risk stood at RUB21.2 billion or 52.3% of current revenue (2013:
RUB18.5 billion, or 52.7%).  The structure of the debt improved
in 2014 as region replaced part of the commercial bank loans by
loans from the federal budget provided at 0.1% annual interest
rate.  This also helped the region to economize on the interest

Fitch views the immediate refinancing risk as low.  In 2015 the
region has no repayments on its commercial debt, and has to
redeem only RUB2.6 billion of federal budget loans.  Penza plans
repayment of the budget loans from its revenue without recurring
to the capital market.  Overall the maturity profile is quite
smooth while the debt payback ratio (direct risk to current
balance) at below five years in 2014 matches Penza's maturity

Penza's economy is historically weaker than the average Russian
region with GRP per capita at 72% of the national median in 2013.
This has led to weak tax capacity compared with national peers.
Current federal transfers constitute a significant proportion of
operating revenue, which limits the region's revenue flexibility.
Nevertheless, dependence on federal transfers had been gradually
decreasing, to 40% of operating revenue in 2013-2014 from 52% in
2009, while the regional economy's growth outpaced the national
average during 2011-2014.


The relief of negative macroeconomic pressure accompanied by the
consolidation of sound operating performance in line with 2013-
2014 actuals could lead to an upgrade.


Fitch assumes that downturn of the national economy will not lead
to a significant contraction of Penza Region's revenue base.

Fitch also assumes that the region will continue to receive a
steady amount of current transfers from the federal government
despite the worsening of public finances at the federal level.

ULYANOVSK REGION: Fitch Lowers IDRs to 'B+'; Outlook Negative
Fitch Ratings has downgraded Ulyanovsk Region's Long-term foreign
and local currency Issuer Default Ratings (IDRs) to 'B+' from
'BB-' and National Long-term rating to 'A(rus)' from 'A+(rus)'.
The Outlooks on the Long-term ratings are Negative.  The region's
Short-term foreign currency IDR has been affirmed at 'B'.


The downgrade and Negative Outlook reflect the following rating
drivers and their relative weights:


Fitch no longer expects that Ulyanovsk's operating balance will
be restored to a positive amount in the medium term.  The region
remains under pressure due to the national economic downturn and
significant rigidity of operating expenditure, which is mostly
made up of non-flexible items such as staff costs, mandatory
grants and state-regulated welfare spending.  The region's
budgetary performance remained weak in 2014 with a negative
operating balance of 7% of operating revenue for a second
consecutive year, which is not commensurate with a 'BB-' rating.

Fitch expects that the region's deficit before debt variation
will exceed 10% of total revenue in 2015-2016 as the region has a
rigid expenditure structure and limited ability to reduce capex.
In 2014, the region's capex declined to a low 8% of total
expenditure from 16% in 2011-2013.  In 2014, Ulyanovsk's budget
deficit was 8.2%, down from a high 16% in 2013 as the region
received but did not utilize RUB2 billion capital transfers
earmarked for the construction of a hospital facility.

Fitch expects Ulyanovsk's direct risk to grow in the medium term
towards 70% of current revenue by 2017 (2014: 51%) driven by
structured deficit.  By end-2014 the region's debt stock reached
RUB17 billion (2013: RUB12.9 billion) and was 73.5% composed of
three to five-year bank loans and budget loans (26.5%) maturing
in 2015-2017.

Fitch forecasts the debt maturity profile will shorten in the
medium term due to the lack of access to long-term financing on
the capital market.  Domestic interest rates in 2015 will
increase to twice their 2014 level, which will make new market
debt more expensive and put additional pressure on the budget.
In 2015 Ulyanovsk needs to repay RUB2.5 billion bank loans and
RUB0.6 billion budget loans.  Fitch expects that the maturing
budget loans are likely to be rolled over and the maturing bank
loans will be refinanced on the capital market unless the federal
government provides more grants.


The region's economic profile is weaker than the average for
Russian regions.  GRP per capita was 78% of the national median
in 2012.  The region's administration estimated that Ulyanovsk's
GRP declined by 3% in 2014 resulting from the national economic
downturn.  Fitch forecasts 4% contraction of Russia's GDP in
2015, and believes the region will also face a slowdown in
economic activity, which will pressurize its budgetary

Ulyanovsk Region's ratings also reflect the following key rating

Fitch expects that Ulyanovsk's dependence on support from the
federal government is growing, driven by the region's weak self-
financing capacity and rising cost of market borrowings.  In 2014
the proportion of subsidized budget loans in the region's debt
portfolio increased to 26.5% (RUB4.5 billion) from 20.7% (RUB2.7
billion) in 2013 and federal transfers remained at about 30% of
total revenue, the same as a year before.

Fitch forecasts that support from the federal budget is unlikely
to exceed its 2014 level due to the challenging situation with
the execution of the state budget in the current year.  The
region's administration expects to contract about RUB2 billion
budget loans to refinance part of banks loans due in 2015.  The
five-year RUB1 billion budget loans received in 2010-2011 for
construction and repairing of roads are likely to be extended
until 2025.  Fitch expects that these measures will help
Ulyanovsk restrain the current debt service cost but does not
believe they will substantially improve the region's fiscal
performance in the medium term.


The region's inability to curb continuous growth of total
indebtedness, accompanied by persistent high refinancing pressure
and a negative operating balance, would lead to a downgrade.

URAL-INVEST LLC: April 16 Hearing Scheduled for Bankruptcy Claim
Elena Mazneva at Bloomberg News reports that the Bashkortostan
region arbitration court has delayed the consideration of
Ural-Invest bankruptcy claim to April 16.

Ural-Invest is a successor to the companies that sold Russian
billionaire Vladimir Evtushenkov's Sistema shares in Bashneft,
Bloomberg discloses.

Ural-Invest filed for bankruptcy after Sistema won a court ruling
for RUR70.7-billion award from Ural-Invest linked to Bashneft
sale damage, Bloomberg relates.

Ural-Invest LLC is based in Russia.


BANCO DE MADRID: Files for Creditor Protection
Jeannette Neumann and Christopher Bjork at The Wall Street
Journal report that Spain's central bank on March 16 said
Banco de Madrid SA, the Spanish unit of an Andorran lender
accused of laundering money for organized-crime groups, has filed
for protection from its creditors.

Banco de Madrid has been hit by substantial client withdrawals,
the central bank, as cited by the Journal, said, which has
impacted the ability of the lender to "meet its obligations in a
timely matter."

The move comes less than a week after the Bank of Spain hastily
took control of the tiny Madrid-based private banking unit, after
The Treasury Department's Financial Crimes Enforcement Network
named Banco de Madrid's parent company-Banca Privada d'Andorra,
or BPA -- a "primary money-laundering concern", the Journal

According to the Journal, filing for creditor protection will
allow depositors and other creditors "equal treatment."

The central bank said deposits of up to EUR100,000 (US$104,970) a
client are protected by Spain's deposit-guarantee fund, the
Journal discloses.

The Bank of Spain said in a statement published on March 16 the
filing must still be approved by a judge, the Journal relays.

Bank of Spain official said Banco de Madrid won't have access to
central bank funding following the bankruptcy filing, the Journal

Banco de Madrid is a small bank in Spain's banking sector.  The
lender had 15,000 clients and 21 offices in major cities such as
Madrid and Barcelona as of March 11, the Journal says, citing a
company spokeswoman.


BELVEDERE UKRAINE: Parent Challenges Court Ruling on Auction
Interfax-Ukraine reports that France's Belvedere Group is
challenging the ruling of the business court of Kyiv after an
auction which resulted in the sale of corporate rights in
security for the company at the low price.

"[Mon]day, March 16, a hearing of the court of appeals was held,
and it will continue [to]day, March 18.  Belvedere will challenge
the results of the auction and the closure of a case on
bankruptcy of Belvedere Ukraine LLC," the company's press service
has told Interfax-Ukraine.

According to Interfax-Ukraine, the press service said that
Belvedere Ukraine LLC did not pay a debt worth UAH65 million to
several companies, including UAH54 million of debt to the parent
company Belvedere Group, UAH9.7 million to Rafinad-Media LLC and
about UAH1.6 million to Creative-Boutique LLC.  Later, Rafinad-
Media initiated the bankruptcy of Belvedere Ukraine, Interfax-
Ukraine recounts.  The procedure to liquidate the company has
been launched, Interfax-Ukraine relays.

"In October 2014, there were two attempts to hold an auction as a
part of the bankruptcy case, although the auction was not held
due to absence of bidders.  Later the repeated auction was held
with the possibility of cutting the primary cost of the assets,"
Interfax-Ukraine quotes the press service as saying.

Avigal LLC won the auction and received corporate rights to
Italiano v Ukraine LLC and Boisson Elite LLC, which are used to
secure the loan issued by Belvedere Group to Belvedere Ukraine
LLC (the two companies are subsidiaries of Belvedere Ukraine LLC)
for UAH250,000, Interfax-Ukraine discloses.

Belvedere Group believes that the auction was held illegally,
Interfax-Ukraine notes.

"Belvedere Group did not give consent to sell assets and hold the
auction, and the company did not have any impact on the
conditions of the sale of the assets, which resulted to the sale
of the collateral at the price which is considerably lower than
its real cost," the company, as cited by Interfax-Ukraine, said.

Belvedere Group was founded in 1991 in France.  The company is
one of the largest producers and distributors of alcohol in
France and Poland and it is present in over 100 countries.

U N I T E D   K I N G D O M

BLIPFOTO: Funding Issues Prompt Liquidation
Patrick McPartlin at Edinburgh Evening News reports that all 11
staff members at Blipfoto have been laid off, after the company
entered liquidation.

According to Edinburgh Evening News, Tom MacLennan -- -- of liquidators FRP Advisory,
confirmed that the Edinburgh-based firm was suffering from
"funding issues", adding: "The funds available were not adequate
to wind it down without insolvency protection."

The Web site is still up and running while talks take place with
potential buyers, with more news expected by the end of the week,
Edinburgh Evening News discloses.

Blipfoto is a Scots photo-sharing firm.  It allows users to post
a photo a day, was started in the capital by Joe Tree in late
2004, and entered into a partnership with Minnesota-based Optics
firm Polaroid in January 2015.

OLD MUTUAL LIFE: Fitch Affirms 'BB' Subordinated Debt Rating
Fitch Ratings has assigned Old Mutual Life Assurance Company
(South Africa) Limited's (OMLACSA) proposed issue of subordinated
debt securities an expected rating of 'AA(zaf)(EXP)'.

The final rating is contingent on the receipt of final documents
conforming to information already received.

The notes are rated two notches below OMLACSA's National Long-
Term Rating of 'AAA(zaf)' to reflect their subordination and loss
absorption features, in line with Fitch's notching criteria.

Concurrently, Fitch has affirmed Old Mutual's ratings.


OMLACSA's proposed issue of subordinated notes will be issued
with a 10-year, 12-year or 15-year maturity or a mixture thereof
and will be callable after a period of five to 10 years.  They
could also be composed of both a fixed and floating coupon.  The
notes include a mandatory interest deferral feature which is
triggered when the company's capital level falls below the
regulatory capital requirement.

According to Fitch's methodology, this subordinated bond is
classified as 100% capital due to regulatory override within
Fitch's risk-based capital calculation and is classified as 100%
debt for the agency's financial leverage calculations.  Fitch
expects leverage to remain low for OMLACSA's rating category and
interest coverage to be strong.

The affirmation of Old Mutual's ratings reflect the group's
leading position in the South African life insurance market, the
strong and supportive level of risk-adjusted capitalization,
robust earnings generation and improved hard currency cover.

The ratings also reflect Old Mutual's position as the market-
leading life insurer and largest fund manager in South Africa,
and its significant presence in the UK savings market.  The group
also has non-life operations in South Africa through Mutual &
Federal, and an asset management business in the US.  In 2014,
64% of Old Mutual's operating earnings came from South Africa,
with the remainder largely from the UK.  Fitch views OMLACSA and
Old Mutual Wealth Life & Pensions Ltd (OMWLPL) as "Core" to the
group under its insurance group rating methodology and therefore
rates them based on the credit quality of the group as a whole.

OMLACSA's national scale ratings reflect its leading position in
South Africa, its strong capitalization (end-2014 regulatory
solvency coverage: 3.1x) relative to peers and its ability to
share potential investment losses with policyholders.  OMWLPL is
an important contributor to the group's earnings, accounting for
about a quarter of the group's operating profits, and is strongly
capitalized (end-14: 2.6x).

The group's international scale IFS rating assigned to OMWLPL, is
one notch higher than the South African local currency sovereign
rating, owing to Old Mutual's geographical diversification: a
sizeable proportion of earnings are generated in the UK and
Europe.  The rating also reflects the loss absorbing feature of
bonus smoothing accounts in the smoothed bonus policies, and the
financial flexibility from being listed on the London Stock

The Stable Outlook reflects the fact that a one-notch downgrade
of the South African sovereign rating would not trigger a
downgrade of Old Mutual's ratings.  The possibility of OMWLPL
resources being called upon to support the South African
operations is remote, in Fitch's opinion.  Old Mutual's hard-
currency interest cover improved further to 5.0x in FY14 (2013:
4.2x).  Cash at the holding company level remains strong at
GBP1bn at end-2014 (end-2013: GBP545m).  However, GBP566m of this
was used in the acquisition of Quilter Cheviot.


The ratings are unlikely to be upgraded as they are constrained
by the South African sovereign ratings, which have a Negative

OMLACSA's National ratings would be downgraded only if its
creditworthiness deteriorated materially relative to the South
African sovereign and its peers in the South African market.

Old Mutual's international-scale ratings could be downgraded if
there were a material reduction in the geographical
diversification of earnings or a deterioration in the quality of
non-South African earnings, with hard-currency cover falling
below 2x (2014: 5.0x).

The rating on the subordinated debt securities is notched down
from the issuer's rating and is therefore sensitive to changes in
OMLACSA's National Long-term rating.

The rating actions are:

Old Mutual PLC

Long-term IDR: affirmed at 'BBB'; Outlook Stable
Senior unsecured debt: affirmed at 'BBB-'
Subordinated debt: affirmed at 'BB'
Short-term IDR and commercial paper: affirmed at 'F3'

Old Mutual Life Assurance Company (South Africa) Limited

National IFS rating: affirmed at 'AAA(zaf)'; Outlook Stable
National Long-term rating: affirmed at 'AAA(zaf)'; Outlook
Subordinated debt (existing): affirmed at 'AA(zaf)'
Subordinated debt (expected): assigned 'AA(zaf)(EXP)'

Old Mutual Wealth Life & Pensions Ltd

IFS rating: affirmed at 'A-'; Outlook Stable
Long-term IDR: affirmed at 'BBB+'; Outlook Stable

PETERBOROUGH PLC: S&P Affirms 'B-' Rating on Sr. Sec. Bank Loan
Standard & Poor's Ratings Services assigned its '2' recovery
rating on the GBP446.1 million fixed-rate bonds and liquidity
facilities issued by Peterborough (Progress Health) PLC.  A
recovery rating of '2' indicates S&P's expectation of Substantial
(70%-90%) recovery prospects in the event of a payment default.
S&P's recovery expectations are in the lower half of the 70%-90%
range.  To date, however, there has been limited experience
regarding default or loss in this sector.  At the same time, S&P
affirmed its 'B-' long-term issue rating on the senior secured
bank loan.  The ratings remain on CreditWatch developing.

The senior debt facilities benefit from a strong security
package, covenants, and contractual features for compensation on
termination that are standard in U.K. PFI transactions.

The PA stipulates the mechanism for determining how the ProjectCo
(and its lenders) will be compensated for various events leading
to termination.  A ProjectCo event of default arising from issues
like insolvency, prohibited change of control, or accumulation of
excessive penalty points, however, can trigger a termination
where the repayment of debt is not guaranteed by the Trust.
Senior lenders have step-in rights to resolve a ProjectCo event
of default.  If termination occurs, compensation is based on a
market retendering process (if a liquid market exists) or a net-
present-value calculation, less certain expenses.

S&P's simulated default scenario assumes a payment default in
September 2015, following monthly payment deductions by the Acute
Trust.  Recovery calculation is based on the assumption of a
market retendering process, where the net-present-value
calculation of the project is used, excluding expenses such as
retendering costs.  S&P has assumed that unitary payment by the
Trust will be reduced by 5% and operating costs will increase by
10%.  Under S&P's Recovery Scenario, any rectification costs
would be covered by the construction contractor.

S&P has revised its assessment of the project's liquidity to
"less than adequate" to reflect S&P's view that, under its
downside scenario, the project does not have sufficient cash
sources to cover forecast debt service payments over the next 12
months by at least 1x, as S&P sees a high probability that the
liquidity facility will have to be drawn to service the debt
payment due in March 2015.

Unlike most rated private finance initiative (PFI) projects to
date, this project uses a liquidity facility and a change-in-law
facility instead of cash reserve accounts, which is a relative
weakness.  The facilities rank pari passu with the senior debt.

The CreditWatch listing reflects the lack of visibility in the
current situation.  S&P expects to resolve the placement within
the next two months, depending upon the outcome of the current
negotiations between the Trust and the ProjectCo.

Downside scenario

S&P could lower the rating, possibly by more than one notch, if a
standstill agreement is not reached by the end of April and the
Trust continues to make further sizable deductions from revenues.

Upside scenario

S&P could raise the rating, possibly by several notches, if the
standstill agreement is signed, restoring the project's revenues.

TRAVELPORT WORLDWIDE: S&P Raises CCR to 'B'; Outlook Positive
Standard & Poor's Ratings Services raised to 'B' from 'B-' its
long-term corporate credit rating on U.K.-based travel services
provider Travelport Worldwide Ltd.  The outlook is positive.

At the same time, S&P raised to 'B' from 'B-' its rating on the
company's first-lien term loan.  The recovery rating is '3' and
S&P's recovery expectations are in the higher half of the 50%-70%

The rating actions reflect Travelport's good operating
performance in 2014.  Under S&P's updated base-case credit
scenario, it expects material improvement in Travelport's
financial ratios in 2015-2016, mainly based on lower finance
costs.  Travelport restructured its capital structure in 2014 in
several steps, culminating in an IPO in September 2014.  In
total, these steps reduced Travelport's interest burden for 2015
by about 40% compared with the previous year.

"Our business risk profile assessment continues to incorporate
our view that the travel industry carries "high" risk--the
industry is, in our opinion, seasonal, cyclical, and price
competitive.  We balance this against Travelport's exposure to
limited country risk through its globally diversified operations.
Our assessment of business risk also takes into consideration
Travelport's position as a leading player in the Global
Distribution System (GDS) market.  In 2013, Travelport's GDS
business held about 26% of the global shares of GDS air segments,
and had balanced positions across the main world travel regions
of the U.S. (32% in 2014), Europe (30%), Asia-Pacific (20%), and
the Middle East and Africa (14%).  Our assessment of the
company's profitability as "strong" is supported by industry-
average profitability measures under our base-case scenario, such
as return on capital (ROC) of between 6%-8%.  However,
Travelport's operating profitability demonstrates low volatility
relative to its transportation industry peers and is a key
consideration in our assessment of its "strong" competitive
position," S&P said.

S&P's base case assumes:

   -- Healthy 3.3% GDP growth in the U.S.--Travelport's key
      market by sales.  S&P expects the company's other major
      markets to have supportive growth, for example, it
      anticipates GDP growth in the eurozone of about 1% in 2015.

   -- Steady performance in air revenues, which S&P sees growing
      by between 1%-3% based on the healthy increase in passenger
      volumes driven by the GDP growth outlined above.

   -- Fast revenue growth of between 13%-15% in Travelport's
      Beyond Air business unit - -which includes the fast-growing
      eNett (Travelport's payment system company for travel
      agents) and hospitality business.  Hosting revenues to fall
      by about 10% in 2015 due to renegotiated contracts.  EBITDA
      margin will come under some strain because the company is
      losing high-margin hosting revenue due to the renegotiated
      contract with Delta Air Lines and Orbitz and because of
      pressure on costs to increase (especially in U.S., where
      the economy is growing strongly).

   -- S&P expects overall discretionary cash flow to be positive,
      allowing Travelport to reduce leverage or invest in growth.

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

   -- Return on capital of between 6%-8%;

   -- Weighted-average adjusted FFO to debt of about 9%-10% in
      2015-2016; and

   -- EBITDA interest cover improving to about 2.5x in 2015.

The positive outlook reflects S&P's expectation that Travelport
will be able to improve and sustainably maintain its credit
metrics at the higher end of the range expected for a "highly
leveraged" financial risk profile over the next 12 months, which
could cause S&P to raise the rating.  Furthermore, in S&P's
opinion, liquidity will be sufficient to meet its operational and
financing needs over the next 12 months.

S&P could raise the ratings if the company can achieve and
maintain adjusted FFO to debt well above 10%, while maintaining
good operating performance and adequate liquidity.  If Travelport
performs in line with S&P's base case in 2015 and there are no
material changes to industry conditions in 2016, it expects it to
reach this level of FFO to debt.

S&P could revise the outlook to stable if the company is unlikely
to be able to improve its FFO to debt to more than 10%.  S&P
could lower the rating if the company significantly increased
leverage, such that debt to EBITDA rose above 8x or liquidity
became weak. Such an increase in leverage under the current
ownership structure seems unlikely as it would require either a
decrease in sales of more than 3.5% and reduction in EBITDA
margin to around 13%, or an active management decision to
increase leverage.

WAGAMAMA FINANCE: S&P Reinstates 'B-' Rating on GBP150MM Notes
Standard & Poor's Ratings Services has corrected its ratings on
Wagamama Finance PLC by reinstating its 'B-' rating on the
company's GBP150 million senior secured notes due 2020.  The
recovery rating on these notes is '4', in the higher half of the

On March 12, 2015, S&P erroneously withdrew its ratings on these
notes due to a technical error.


* S&P Takes Various Rating Actions on European CDO Tranches
Standard & Poor's Ratings Services, on March 16, 2015, took
various credit rating actions on 27 European synthetic
collateralized debt obligation (CDO) tranches.

Specifically, S&P has:

   -- Raised and removed from CreditWatch positive its ratings on
      12 tranches;

   -- Raised its rating on one tranche;

   -- Placed on CreditWatch positive our ratings on four

   -- Raised and placed on CreditWatch negative its rating on one

   -- Lowered its rating on one tranche;

   -- Placed on CreditWatch negative its ratings on three
      tranches; and

   -- Affirmed its ratings on five tranches.

The rating actions are part of S&P's regular monthly review of
European synthetic CDOs.  The actions reflect, among other
things, the effect of recent rating migration within reference
portfolios and recent credit events on referenced obligations.
S&P has used its SROC tool to surveil our ratings on these
synthetic CDOs.


The SROC has fallen below 100% during the December 2014 month-end
run.  This indicates to S&P that the current credit enhancement
may not be sufficient to maintain the current tranche rating.


The tranche's current SROC exceeds 100%, which indicates to S&P
that the tranche's credit enhancement is greater than that
required to maintain the current rating.  Additionally, S&P's
analysis indicates that the current SROC would be greater than
100% at a higher rating level than currently assigned.


S&P has run SROC for the current portfolio and have projected
SROC 90 days into the future, while assuming no asset rating

S&P has lowered its ratings to the level at which SROC is above
or equal to 100%.  However, if the SROC is below 100% at a
certain rating level but greater than 100% in the projected 90-
day run, S&P may leave the rating on CreditWatch negative at the
revised rating level.


S&P has raised its ratings to the level at which SROC exceeds
100% and meets its minimum cushion requirement.


S&P has affirmed its ratings on those tranches for which credit
enhancement is, in S&P's opinion, still at a level commensurate
with their current ratings.


The rating actions follow the application of S&P's relevant

S&P has used its CDO Evaluator model 6.3 to determine the amount
of net losses in each portfolio that S&P expects to occur in each
rating scenario.

S&P has also applied its top obligor and industry tests.


One of the main steps in S&P's rating analysis is the review of
the credit quality of the portfolio referenced assets.  SROC is
one of the tools S&P uses when surveilling its ratings on
synthetic CDO tranches with reference portfolios.

SROC is a measure of the degree by which the credit enhancement
(or attachment point) of a tranche exceeds the stressed loss rate
assumed for a given rating scenario.  SROC helps capture what S&P
considers to be the major influences on portfolio performance:
Credit events, asset rating migration, asset amortization, and
time to maturity.  It is a comparable measure across different
tranches of the same rating.

* Moody's Publishes New Bank Rating Methodology
Moody's Investors Service, on March 16, 2015, published its
updated methodology for rating banks globally, which incorporates
several new components: a Loss Given Failure (LGF) analysis; the
introduction of a Macro Profile into the elements that Moody's
considers when it assigns a bank's baseline credit assessment
(BCA); a BCA scorecard which now incorporates not only financial
ratios but also a broader range of metrics and qualitative
considerations; and a Counterparty Risk Assessment (CR

The revisions to the methodology reflect insights gained from the
crisis and the fundamental shift in the banking industry and its
regulation.  The revised approach to establishing BCAs helps to
more accurately predict bank failures, while Moody's LGF
framework assesses how different creditor classes are likely to
be affected when a bank enters resolution based on the relevant
resolution policy and balance sheet structure.

The updated methodology, "Rating Methodology: Banks," is now
available.  The introduction of this new methodology follows a
market consultation initiated via a Request for Comment published
on Sep. 9, 2014.

"The first key change is the introduction of a Loss Given Failure
(LGF) analysis, which addresses expected loss and assesses the
impact a bank's failure would have on its various debt
instruments and deposits in the absence of any support. For banks
subject to operational resolution regimes, the LGF analysis will
incorporate the cushion against loss that each creditor class
derives from the amount of debt subordinate to it in a
resolution," says Gregory Bauer, Managing Director Global
Banking, Moody's.

"With the recent dramatic shift in public policy toward
implementation of resolution regimes, it has become increasingly
important for investors to know their position in a bank's
liability structure, and thus the potential losses they are
exposed to in the event of a resolution," continues Bauer. "LGF
analysis directly addresses this key investor concern."

Moody's employs both a basic and an advanced LGF analysis.  The
basic LGF analysis applies to banks that are not subject to
operational resolution regimes.  The advanced LGF analysis
applies to banks that are subject to operational resolution
regimes, whereby losses can be imposed selectively on creditors
outside of a liquidation, and through which specific legislation
provides a reasonable degree of clarity on how the bank's failure
could affect depositors and other creditors.

Basic LGF analysis entails an approach wherein senior unsecured
debt and deposits are positioned at the level of the adjusted BCA
(the adjusted BCA is the BCA plus Moody's assessment of support
from affiliates being forthcoming in the event of need), before
government support and additional coupon-related notching
considerations. Subordinated instruments are positioned at one
notch below the adjusted BCA, excluding support and additional
notching, reflecting increased loss severity.  This basic LGF
analysis continues the previous notching practice and, in the
rating agency's view, remains an appropriate guide to loss
severity for banks in systems without operational resolution

Under the advanced LGF analysis, which would be applied, for
example, to banks subject to the European Union's Bank Recovery
and Resolution Directive and to US banks subject to Titles I and
II of the Dodd-Frank Act, Moody's bases its notching on (1) the
likely bank-wide loss rate in failure; (2) the amount of
subordination below a given instrument class; and (3) the volume
of a given instrument class itself. In Moody's view, taking these
together provides a more refined and predictive view of expected
loss for each instrument class under new resolution regimes.

"The second key change is the revision of our framework for
assessing the risk of bank failure, expressed by our baseline
credit assessment.  This includes the introduction of a Macro
Profile, which allows us to place greater emphasis on potential
system-wide pressures that we believe are predictive of the
propensity of banks to fail," explains Frederic Drevon, Managing
Director Global Banking, Moody's.

Moody's framework for assigning BCAs is structured around a new
Scorecard that more comprehensively integrates Moody's analytical
judgments.  The Scorecard begins by focusing on five core ratios
that Moody's has found to be predictive of bank failure covering
five main financial factors: asset risk, capital, profitability,
funding structure and liquid resources.  Additionally, analysts
and rating committees may consider supplementary ratios, as
relevant, for each institution.  Individual scores for each
factor will now directly incorporate not only financial ratios,
but also a broader range of metrics, Moody's forward-looking
judgments and qualitative considerations relative to each.

Moody's new Macro Profile complements the bank-specific analysis
reflected in the Scorecard and will be expressed on a scale
ranging from Very Strong+ to Very Weak-. It comprises six
elements: economic strength, institutional strength,
susceptibility to event risk, credit conditions, funding
conditions and industry structure.  The Macro Profile, combined
with the results of the Scorecard, helps establish the bank's
Financial Profile.  This results in the BCA, representing Moody's
view of a bank's probability of default, in the absence of

Lastly, Moody's has introduced a Counterparty Risk (CR)
Assessment into its analysis. This is not a rating, but an
assessment of an issuer's ability to avoid defaulting on certain
senior bank operating obligations and other contractual
commitments.  The CR Assessment takes into account the issuer's
standalone strength as well as the likelihood of affiliate and
government support in the event of need, reflecting the
anticipated seniority of counterparty obligations in the
liabilities hierarchy.  The CR Assessment also takes into account
other steps authorities can take to preserve the key operations
of a bank in a resolution.

When credit rating methodologies are revised, the updated
methodology is applied to all relevant credit ratings.
Accordingly, in the coming days, Moody's will place on review the
ratings of those banks that are likely to be affected.
Regulation requires that rating actions related to methodology
changes be completed within six months of the release of the
methodology.  However, Moody's expects to conclude the large
majority of the reviews in the first half of 2015.  In
conjunction with the methodology-driven review, Moody's expects
to incorporate revised views on government support in Europe,
driven by the introduction of resolution regimes.  For any banks
whose ratings are placed under review, CR Assessments will be
assigned when the reviews are concluded; for other banks, CR
Assessments will be assigned in the coming months.

Moody's preliminary assessment of the anticipated impact of the
new methodology and revised support assumptions shows that the
ratings impact is likely to vary across countries and regions.
Moody's anticipates the following key outcomes:

(1) An overall net neutral impact on banks' BCAs globally, with
     around 15% of BCAs changing.  About half of these changes
     are anticipated to be within Europe, with a modest positive

(2) in the US, a significant positive effect on bank deposit
     ratings and a material negative effect on senior unsecured
     bank debt ratings.  This reflects the nature of deposit
     preference, which benefits depositors at the expense of
     senior unsecured debt.  However senior unsecured holding
     company ratings are expected to be little changed, overall;

(3) in the EU and western Europe, a modest positive effect on

     deposit ratings and a broadly neutral effect on senior
     unsecured ratings, reflecting the changes in BCAs coupled
     with the counterbalancing effects of the new resolution
     regime and reduced likelihood of government support.  While
     support is expected to decline, banks' most senior
     creditors, especially depositors, will benefit from the
     lower loss rates expected in an orderly resolution and the
     subordination that protects them from loss;

(4) in Asia Pacific, the Commonwealth of Independent States,
     Western Asia, Latin America, the Middle East and Africa, a
     small negative effect on senior unsecured and deposit
     ratings in some systems. This reflects Moody's view that the
     capacity for government support is henceforth limited to the
     government bond rating, and that there is little scope for
     other policy tools to provide durable support beyond this


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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