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        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

           Thursday, April 9, 2015, Vol. 16, No. 69

                            Headlines

F R A N C E

FINANCIERE GAILLON 8: Fitch Affirms 'B' IDR; Outlook Negative


G R E E C E

GREECE: Refuses to Meet IMF's Demand to Raise Taxes
GREECE: Maintains It Did Not Ask Financial Aid From Russia
OCEAN RIG: S&P Lowers Rating to 'B-' on Weak Drilling Outlook
* Fitch Lowers Ratings on 19 Tranches of 8 Greek Transactions


H U N G A R Y

QUAESTOR FINANCIAL: Obtains Temporary Moratorium on Payments


I R E L A N D

EUROPEAN PROPERTY: Fitch Cuts Ratings on 2 Note Classes to 'Dsf'


K A Z A K H S T A N

KAZTEMIRTRANS JSC: Moody's Affirms 'Ba1' Corp. Family Rating


N E T H E R L A N D S

CERBERUS NIGHTINGALE: Fitch Rates EUR145MM 8.25% Sr. Notes 'B-'
CONSUMENTENBOND: To Consider Liquidation Amid Regulatory Pressure
ING GROEP: Moody's Assigns 'Ba2(hyb)' to AT1 Securities
LOWLAND MORTGAGE 1 BV: Fitch Affirms 'BB' Rating on Class D Notes


N O R W A Y

LYNGEN MIDCO: Moody's Assigns Definitive B1 Corp. Family Rating


R O M A N I A

SPICUL: Enters Bankruptcy; Ilfov Plant Up for Sale


R U S S I A

PROMSBERBANK: Bank of Russia Revokes License
KEDR BANK: Moody's Withdraws 'B3.ru' Nat'l. Scale Deposit Rating
KEDR BANK: Moody's Withdraws 'Caa2' Currency Deposit Ratings


S P A I N

BBVA: Moody's Withdraws Ratings on EUR1.25-Mil. Secured Loans
PYME BANCAJA 5: Fitch Affirms 'Csf' Rating on Class D Notes


U K R A I N E

UKREXIMBANK: Fitch Lowers Issuer Default Rating to 'C'
UKRGAZPROMBANK: Declared Insolvent; Deposit Fund Takes Over


U N I T E D   K I N G D O M

ALBA 2015-1: S&P Assigns Prelim. 'BB-' Rating to Class E Notes
ALBA TOWN: Retail Unit Sold in GBP705,000 Deal
CLOSED LOOP: On Brink of Collapse Following Oil Price Drop
DRAX POWER: S&P Affirms 'BB' Corp. Credit Rating
GB GROUP: Cost of Collapse to be Confirmed Next Month

MALLINCKRODT PLC: S&P Assigns 'BB-' Rating to US$1.2BB Sr. Notes
SCC LTD: Enters Administration After Customer's Bankruptcy
SKY BET: S&P Assigns 'B' Corp. Credit Rating; Outlook Stable
TLG-FINCO PLC: Moody's Assigns 'B3' Corp. Family Rating
VEDANTA RESOURCES: S&P Lowers CCR to 'BB-'; Outlook Negative


                            *********


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F R A N C E
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FINANCIERE GAILLON 8: Fitch Affirms 'B' IDR; Outlook Negative
-------------------------------------------------------------
Fitch Ratings has revised Financiere Gaillon 8's (FG8) Outlook to
Negative from Stable.  Its Long-term Issuer Default Rating (IDR)
is affirmed at 'B' and its EUR370 million senior unsecured notes
at 'B-' with a Recovery Rating of 'RR5'.

FG8 is a holding company with its sole asset an 88% stake in
Kaufman and Broad (K&B), one of the largest house builders in
France with a solid operating track record.

While K&B has been performing reasonably well despite the harsh
French housing market, the Negative Outlook reflects an increase
in leverage resulting from lower funds from operations (FFO), and
uncertainty regarding the timing of deleveraging.  In 2014 K&B
was able to maintain its EBITDA as the French housing market
dropped below 300,000 new homes (315,000 in 2013), but other
items before FFO (taxes, interests and dividend to minorities)
rose sharply. While Fitch was expecting those expenses to rise,
the increase was either sharper or earlier than previously
thought.  As a result, FG8's FFO gross leverage and interest
cover rose above our rating guidelines.

For the rating outlook to be revised to stable, Fitch will await
evidence of a FFO recovery as K&B's EBITDA rebounds following an
expected improvement of the French housing market.

KEY RATING DRIVERS

Higher Leverage

FG8 managed to slightly reduce its net debt in 2014.  However,
FFO decreased substantially leading to FFO adjusted gross
leverage rising above the 6.5x negative rating guideline.  FFO
was negatively impacted by taxes increasing earlier than
initially forecast, exceptionally high cash interest expenses and
higher dividend paid to minorities.  While Fitch expects interest
expenses to decline, deleveraging will mostly hinge on K&B's
ability to grow its EBITDA.

Lacklustre French Market Recovery

Through the cycle the French housing market has shown less
volatility than other European markets in both volume and price.
Following a recovery in 2010 and 2011, driven by favorable tax
regimes and low mortgage rates, 2013 and subsequently 2014 marked
a low point in volumes of new houses.  A slow recovery is
expected for 2015 onwards, helped by decreasing interest rates
and favorable government policies.

Low Margin Volatility

K&B has below-average margins compared with other European house
builders, although this is a function of a lower-risk house
building business model.  K&B's current policy is to maintain
pre-sales rates above 60%, limiting downside price risk and
improving working capital.  Higher pre-sales ensure higher
customer stage payments by the time large cash outflows are
required for land acquisition.  In France, house builders such as
K&B use land options rather than outright acquisition of land
bank.  These options are typically only exercised if planning
permission and a high pre-sales rate are obtained.

Fairly Low Working Capital

Land options limit development and volume risk, allowing K&B to
cancel a project with minimal cash outflows.  K&B has one of the
lowest working capital requirements in the sector with a working
capital/turnover ratio below 10% in 2014.  However, during 2007
and 2008 this ratio reached 32%, primarily driven by a lower pre-
sales rate of around 30%, meaning lower customer payments funding
working capital requirements.

Maintaining Financial Discipline

K&B's management has a track record of maintaining high pre-sale
rates.  In a growth scenario with strong house price inflation
the trade-off between profitability and pre-sales becomes more
evident.  Increased margins can be achieved in a rising price
environment by lowering pre-sale rates, albeit at the increased
risk of exposing more working capital to a potential downturn.
Any reversal of K&B risk management's policies would be viewed as
a rating-negative.

Modest Diversification

K&B is primarily focused on apartments across France, albeit
skewed towards the Paris suburbs.  Over the past decade it has
remained a top five player with a stable market share of around
6%.  The customer base is diversified across three broad groups,
including institutional investors, individual investors (second
home) and owner-occupiers (primary residence), limiting
dependence on any one group.  However, K&B remains a price taker
and volumes are inherently linked to the French housing market,
although structural under-supply provides long-term support.

KEY ASSUMPTIONS

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

   -- Some recovery of the French housing market from 2015,
      supported by decreasing cost of borrowing and government
      initiatives

   -- K&B to maintain its market share and to grow its order book
      as the market recovers

   -- A stable gross margin and improving EBITDA margin

   -- K&B to pay a yearly dividend matching FG8's expenses

RATING SENSITIVITIES

Positive: Future developments that may, individually or
collectively, lead to a revision of the Outlook to Stable
include:

   -- FFO adjusted gross leverage falling to below 6.5x and FFO
      interest cover rising above 2.0x on a sustained basis

   -- Dividend cover (K&B FCF/dividend up-streamed to FG8) above
      1.25x on a sustained basis

   -- Maintaining prudent development with pre-sale rates of at
      least 50% and working capital/turnover ratio below 20%

   -- Improving trend of the French housing market and K&B's
      positioning

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

   -- FFO adjusted gross leverage rising above 6.5x and FFO
      interest cover below 2.0x on a sustained basis

   -- Evidence of weakening risk management policies with pre-
      sale rates falling and increasing working capital/turnover
      ratio to above 20%, impacting liquidity

   -- Dividend cover (K&B FCF/dividend up-streamed to FG8) below
      1.25x on a sustained basis

LIQUIDITY AND DEBT STRUCTURE

Following last year's debt refinancing, both FG8 and K&B have no
material debt maturities over the next four years.  Liquidity is
satisfactory with a high level of cash on balance sheet providing
a buffer against seasonal working capital requirements that can
be as high as EUR150 million throughout the year.

FG8's sole financial debt is a EUR370 million bond maturing in
2019 while the debt at the K&B level consists of a term loan with
a 4.3 year average maturity (up from 2.1 years in 2013).  A
further working capital facility of EUR50 million provides
additional liquidity.



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


GREECE: Refuses to Meet IMF's Demand to Raise Taxes
---------------------------------------------------
dpa reports that Greece on April 7 refused to meet demands from
the International Monetary Fund to raise taxes, just hours after
its government quantified for the first time compensation claims
for damages incurred by Germany during the Nazi occupation.

"There is no way that the government's position will be to
increase VAT rates," dpa quotes Government Spokesman Gavriil
Sakellarides as saying in an interview with Skai television,
referring to demands from the IMF to introduce more pension cuts
and raise taxes.

"For us, this is a red line and we will stand firm against such
proposals from the institutions until the end," Mr. Sakellarides,
as cited by dpa, said in reference to Greece's creditors the
European Central Bank, the IMF and the European Commission.

Greece is in a race against time to reach agreement with its
creditors by the end of April as it struggles to meet hefty debt
repayment deadlines, dpa notes.  A repayment of EUR450 million to
the IMF is due today, April 9, and the Greek government has vowed
to honor it, dpa relays.

Greece has submitted its bailout reform plans to European
creditors -- which include combating tax evasion and streamlining
public administration -- in the hope of accessing EUR7.2 billion
remaining in its current bailout, dpa discloses.

Despite Greece's agreements with lenders, critics argue that the
government has been slow in adopting the economic reforms that
could restore the country's growth and competitiveness, dpa
relates.

The news comes after the Greek government for the first time
quantified its compensation claim against Germany, dpa states.
The EUR278.7 billion figure includes war reparations and a so-
called occupation loan that Nazi Germany forced the Bank of
Greece to make, according to dpa.


GREECE: Maintains It Did Not Ask Financial Aid From Russia
----------------------------------------------------------
Renee Maltezou at Reuters reports that Greek Prime Minister
Alexis Tsipras began talks with Russian President Vladimir Putin
on March 8 as his indebted country scrambles for funds, but
officials said Athens had not asked for money from Moscow.

Greece owes billions of euros in debt and interest payments and
is looking for funds after failing so far to reach a deal with
its European Union and International Monetary Fund partners to
unlock fresh financing, Reuters discloses.

According to Reuters, Mr. Putin could offer to lift a ban on food
imports from Greece, imposed in response to EU economic sanctions
over Russia's role in the Ukraine crisis, or propose a discount
on gas deliveries.

Some EU states are worried such deals might encourage Athens to
break ranks over the sanctions but a Greek government official
suggested this would not happen, Reuters relays.

"We have not asked for financial aid," Reuters quotes a Greek
government official as saying before the talks in Moscow.  "We
want to solve our debt and financial issues . . . within the euro
zone."

Russian Finance Minister Anton Siluanov also said on April 7 that
there had been no aid request, Reuters relates.  Russia is not in
a good position to offer aid as it faces its own economic crisis,
aggravated by the sanctions, a drop in global oil prices and the
ruble's decline against the U.S. dollar, according to Reuters.

The Greek official, as cited by Reuters, said talks would focus
on economic cooperation and bilateral investment and trade,
within what he called the framework of the EU.  "Greece knows
what to do within the EU framework but every country also has the
sovereign right to look after and improve its bilateral
relations," Reuters quotes the official as saying.

According to dpa, the European Commission warned Athens on
April 7 not to negotiate a separate deal with Moscow, arguing
that the EU should remain united on the issue.

"We expect that all member states are treated equally, and we
expect as well that all member states speak with one voice to all
trade partners, including Russia," dpa quotes commission
spokesman Daniel Rosario as saying.


OCEAN RIG: S&P Lowers Rating to 'B-' on Weak Drilling Outlook
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'B-' from 'B' its
ratings on Ocean Rig UDW Inc.  The outlook is stable.

At the same time, S&P lowered its issue ratings on:

   -- Drillships Ocean Ventures Inc.'s US$1.3 billion term loan B
      facility to 'B' from 'B+'.  The '2' recovery rating is
      unchanged, with recovery expectations at the higher end of
      the range.  Drill Rigs Holdings Inc.'s US$800 million
      senior secured notes to 'B-' from 'B'.  The '3' recovery
      rating is unchanged, with recovery expectations at the
      higher end of the range.

   -- Drillships Financing Holding Inc.'s $1.9 billion term loan
      B facility to 'B' from 'B+'.  The '2' recovery rating is
      unchanged, with recovery expectations at the higher end of
      the range.  Ocean Rig's $500 million senior unsecured notes
      due in 2019 to 'CCC' from 'CCC+'.  The '6' recovery rating
      is unchanged.

Dayrates for deepwater rigs have dropped by about a third over
the past year.  S&P forecasts that oil prices will be at or below
$75 per barrel for Brent crude oil from 2017, which could put
dayrates under further pressure when existing contracts on Ocean
Rig's vessels finish.  New rigs are due to be delivered from 2017
and these are not yet contracted.

Following the intercompany loan made by Ocean Rig to its parent,
dry bulk shipping company DryShips, in November 2014, S&P has
revised its assessment of Ocean Rig's status within the group.
Previously, S&P considered it an insulated subsidiary, but S&P
now views it to be a "strategically important" subsidiary because
it contributes about 80% of DryShips' revenue.  Although DryShips
has several times publicly stated that it could sell its share in
Ocean Rig in the medium term, we consider that it would likely be
a partial sale.

As a result of the loan Ocean Rig made to DryShips, the link
between S&P's ratings on Ocean Rig and DryShips' credit quality
has strengthened more than S&P previously anticipated.  S&P
understands, however, that Ocean Rig's corporate governance and
restrictions in its debt covenants contain elements of protection
to prevent further intercompany loans from being put in place.
Nevertheless, DryShips' constrained liquidity could strain Ocean
Rig's financial flexibility as S&P considers that although
DryShips does not have a majority on the board, it could
influence Ocean Rig's board decision.

S&P's assessment of DryShips' credit quality is constrained by
DryShips' "weak" liquidity position, capping the group credit
profile at 'b-'.  DryShips has persistently breached some
financial covenants, although S&P understands that none of its
commercial lenders have asked for an acceleration of payments.
In 2015, DryShips has limited debt payments due (US$232 million)
and will receive about US$275 million from the sale of vessels in
addition to its $119 million cash base.  S&P therefore
anticipates that DryShips will be able to finance its liquidity
needs in 2015.

S&P's assessment of Ocean Rig's business risk profile as "fair"
still reflects the company's revenue and cash flow visibility
through multiyear contracts with a range of highly rated
companies and a sizable contract backlog totaling US$5.2 billion.
Ocean Rig is smaller than its main competitors, but it is growing
quickly and has a young and modern fleet.  Ocean Rig has a fleet
of eight modern ultra-deep-water drillships (plus three on order)
and two ultra-deep-water, harsh-environment, semisubmersible
rigs.

S&P assess Ocean Rig's financial risk profile as "highly
leveraged."  The company continues to invest heavily in new
drillships, and S&P therefore forecasts negative free operating
cash flow (FOCF) overall in 2015.

S&P's base case assumes:

   -- Lower dayrates for uncontracted rigs and potential
      renegotiation of existing contracts;

   -- Lowered capital expenditures in 2016 and 2017 as the
      delivery of Santorini and other rigs is being delayed;

   -- Limited dividend payments; and

   -- No current plans to implement a master limited partnership
      structure, given market conditions.

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

   -- Adjusted debt to funds from operations (FFO) of 8%-10%;
   -- Negative FOCF in 2015, which could turn positive in 2016
      due to the delay to the Santorini rig construction; and
   -- Adjusted debt to EBITDA above 5.0x in 2015 and 2016

The stable outlook indicates that recent actions taken by
DryShips should limit potential liquidity stresses in 2015.  In
addition, Ocean Rig's strong contractual position should support
its cash flow generation and generation of FFO to debt of around
8%-10% in the coming years.

S&P could raise the rating if DryShips' liquidity position
improves, provided no adverse changes affect Ocean Rig's
contracted position.

S&P could lower the ratings if DryShips' liquidity position
worsens.  Any liquidity issue at Ocean Rig, particularly if it
affects deliveries of new rigs, could also impair Ocean Rig's
rating.


* Fitch Lowers Ratings on 19 Tranches of 8 Greek Transactions
------------------------------------------------------------
Fitch Ratings has downgraded 19 tranches of eight Greek
structured finance transactions (one ABS and seven RMBS).  The
agency has assigned a Negative Outlook to all 18 RMBS tranches.

In addition, Fitch downgraded five covered bond programs and
maintained their ratings on Rating Watch Negative (RWN).

These rating actions follow the downgrade of Greece's Issuer
Default Ratings (IDRs), as well as the revision of the Country
Ceiling.

KEY RATING DRIVERS

The action follows the downgrade of Greece's sovereign Long-term
foreign- and local currency IDRs to 'CCC' and the revision of the
Country Ceiling to 'B-'.  As a result, Fitch has revised the
Greek structured finance (SF) cap to 'B-sf'/Negative.

This revision to the highest achievable rating for Greek SF has
led to a downgrade to 'B-sf' of 18 tranches of Greek RMBS.  All
RMBS tranches rated at the SF rating cap are on Negative Outlook.

The revised SF cap is also the maximum achievable rating for
covered bond programs.  Fitch has therefore downgraded the
mortgage covered bond programs issued by Alpha Bank AE (Alpha, B-
/RWN/B, Viability Rating (VR): b-/RWN), Eurobank Ergasias S.A.
(B-/RWN/B, VR: b-/RWN), National Bank of Greece S.A. (NBG, B-
/RWN/B; VR: b-/RWN) under Programme II and Piraeus Bank S.A.
(Piraeus, B-/RWN/B, VR: b-/RWN) to 'B-' from 'B+' and the
mortgage covered bond program of NBG under Programme I to 'B-'
from 'BB-'.

All the covered bond ratings are maintained on RWN, reflecting
the RWN on the Greek banks' IDRs.  The RWN on the Greek covered
bond programs will be resolved upon the resolution of the RWN on
the banks' IDRs.

Aeolos S.A. is a Greek ABS transaction linked to the sovereign
and its notes have a support floor at the sovereign IDRs.  As a
result, today's downgrade to 'CCCsf' reflects the recent action
on the Greek sovereign.  The transaction securitizes the
receivables due from route charges levied on airlines for their
use of the Greek airspace.  The proceeds of the notes issue were
used to purchase the receivables from the Hellenic Republic (HR),
which granted an unconditional and irrevocable undertaking to
provide any shortfall in amounts due by the issuer on the notes
and expenses.

RATING SENSITIVITIES

Further actions on the Greek sovereign will lead to the revision
of the SF cap and subsequent rating actions on Greek SF and
covered bond programs.

The ratings of the covered bond programs are also sensitive to
changes to the IDRs of the Greek banks.



=============
H U N G A R Y
=============


QUAESTOR FINANCIAL: Obtains Temporary Moratorium on Payments
------------------------------------------------------------
MTI-Econews reports that an announcement in the official company
gazette Cegkozlony shows the Budapest Municipal Court of Appeals
granted Quaestor Financial Hrurira a temporary moratorium on
payments on March 31.

The company, a unit of troubled brokerage Quaestor, filed for
bankruptcy protection on March 19, MTI-Econews relates.

Quaestor Financial Hrurira is being represented by the legal
office of Basty, MTI-Econews discloses.

Quaestor is under investigation on suspicion of fraud,
MTI-Econews relays.

Quaestor Financial Hrurira is thought to have issued unsanctioned
corporate bonds that were subscribed by Quaestor clients,
according to MTI-Econews.

Quaestor is a Hungarian brokerage firm.



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I R E L A N D
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EUROPEAN PROPERTY: Fitch Cuts Ratings on 2 Note Classes to 'Dsf'
----------------------------------------------------------------
Fitch Ratings has downgraded European Property Capital 3 plc's
(EPC 3) notes due May 2015, as:

  EUR12.8 million class C (XS0236880851) downgraded to 'Dsf' from
  'CCCsf'; Recovery Estimate (RE) 15%

  EUR17.5 million class D (XS0236881313) downgraded to 'Dsf' from
  'CCsf'; RE0%

EPC 3 is a securitization originally comprising five commercial
mortgage-backed loans originated by JP Morgan Chase Bank, N.A, of
which only the EUR30.3 million Randstaad loan now remains.

KEY RATING DRIVERS

The downgrades reflect the imminent allocation of principal
losses as well as interest shortfalls.  All the collateral
properties securing the Ranstaad loan have now been sold, with
proceeds from one property sale awaiting distribution.  The gross
sales price of EUR2.1 million will be deducted for sales costs,
and additional senior costs of the issuer (now that loan interest
will no longer be received) may also have to be met.  Fitch
expects net amounts available for principal distribution to be
just below EUR2 million, payable at the May 2015 interest payment
date, which is also the legal final maturity of the bonds.

Over the past 11 months, 13 properties have been sold for
aggregate gross sales proceeds of EUR50.8 million, well below the
EUR77.3 million valuation from July 2012.  Some of this fall in
value can be attributed to shortening lease terms over an
extended work-out period that began in 2010 when the loan was
transferred to special servicing.  However the loan has benefited
from low interest rates during this period, allowing a high level
of cash sweep.  This has led to total loan principal recoveries
since the 2012 valuation of just over EUR80 million.

At the time of the last rating action, in May 2014, there was
potential for sale proceeds to continue to outperform valuations
sufficient to pay the class C notes in full, reflected in the
previous 'CCCsf' rating.  However, weakness in the
secondary/tertiary Dutch office occupational market did not
sufficiently support leasing to allow for this outcome, and Fitch
estimates losses on this class to be around EUR11 million.  The
class D notes will be fully written off.

RATING SENSITIVITIES

The ratings of the notes are not sensitive to any future outcome
as the properties have been sold.  The final level of costs will
have a direct bearing on the Recovery Estimate for the class C
notes.



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


KAZTEMIRTRANS JSC: Moody's Affirms 'Ba1' Corp. Family Rating
------------------------------------------------------------
Moody's Investors Service has affirmed the Baa3 issuer rating and
senior unsecured rating of JSC National Company Kazakhstan Temir
Zholy (KTZ), Baa3 rating of its guaranteed senior unsecured notes
issued by Kazakhstan Temir Zholy Finance B.V. (KTZ Finance), and
the Ba1 corporate family rating (CFR) and Ba1-PD probability of
default rating (PDR) of KTZ's wholly owned operating subsidiary
Kaztemirtrans JSC (KTT).

Concurrently, Moody's changed the outlook on the ratings to
stable from positive.

The action follows the sovereign action on Kazakhstan on
March 31, 2015, when Moody's affirmed the issuer and senior
unsecured ratings of the Government of Kazakhstan at Baa2, as
well as the provisional (P)Baa2 MTN program rating, and changed
the outlook to stable from positive.

To determine the companies' ratings Moody's uses its GRI
methodology which comprises the following inputs: (1) a baseline
credit assessment (BCA), which measures the company's underlying
fundamental credit strength; (2) the rating of the support
provider -- Kazakhstan government, at Baa2 stable; and (3)
assumptions of the probability of government support to the
entity in the event of distress; and the default dependence which
reflects the joint susceptibility of a GRI and its supporting
government to adverse circumstances that simultaneously move them
closer to default.

The affirmation of the ratings of the two companies reflects
Moody's view that the companies will continue to benefit from
significant support from the government despite the expectations
of subdued domestic market growth.

Moody's notes that of both KTZ's and KTT's standalone credit
profiles as reflected by their respective BCAs of ba2 and b1 have
weakened, as their profitability, leverage and coverage metrics
have been negatively affected by: (1) a decrease in the volumes
of domestic freight and transit passenger transportation; 2) a
substantial increase in the operating expenses driven by cost
inflation and in the case of KTT the adoption of a new business
model; and 3) devaluation of the local currency while a dominant
portion of the companies' debt is in USD. In Moody's view, these
factors will continue to pressurize operating and financial
performance of both KTT and KTZ in the next 12-18 months.

More positively, the agency expects the companies' operations to
benefit from: 1) an increase in the volumes of the Asia-Europe
transit which benefits from FC-denominated tariffs; 2) some
reduction in the fuel costs following the government's decision
to reduce fuel price in Kazakhstan from January 1, 2015; 3)
approved subsidies of approximately KZT22.0 billion
(approximately $119 million) to be received by KTZ from the
government over the course of 2015 to support its loss-making
transportation segments; and 4) availability of low-priced long-
term funding from the government to support KTZ's investment
program.

Moody's notes that approximately 40% of debt on KTZ's balance
sheet is represented by KZT-denominated long-term financing from
the state, approximately three quarters of these loans are due
beyond 2018 and bear a below-market interest rate. Moodys'
expects leverage at KTZ to increase above the agency's current
guidance of adjusted debt/EBITDA of 3.5x in 2015-16, but notes
that the company's debt/EBITDA ratio excluding loans from the
government, according to the agency's estimates should not exceed
2.5x over the same period.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook on the ratings reflects Moody's view that the
linkages between the companies and the government remain strong,
with no evidence of decline in the government's willingness
and/or ability to provide support in the event of distress.

WHAT COULD CHANGE THE RATINGS UP/DOWN

There is limited upward potential for the ratings in the current
operating environment. An improvement in the standalone
creditworthiness, alongside positive developments at the
sovereign rating level, would have a positive effect on the
ratings. Conversely, prolonged deterioration of the financial
metrics compared with the benchmarks established by the agency
for the current BCAs (please refer to credit opinions on
respective companies), liquidity, and/or weakening of the
sovereign creditworthiness and support assumptions, would put
pressure on the ratings and the outlook.

The principal methodology used in these ratings was Global
Surface Transportation and Logistics Companies published in April
2013. Other methodologies used include the Government-Related
Issuers methodology published in October 2014.

Headquartered in Astana, Kazakhstan, JSC National Company
Kazakhstan Temir Zholy (KTZ) is the 100% state-controlled
vertically integrated rail group operating the national rail
network of the Republic of Kazakhstan. The sole shareholder of
KTZ is the state, represented by JSC National Welfare Fund
SamrukKazyna (SamrukKazyna). KTZ is the monopoly provider of rail
infrastructure services and has the leading position in the
railway transportation market in Kazakhstan, with 153,309
employees in 2013. In 2014, the group generated revenue of around
US$4.9 billion, around 85% of which was provided by freight
transportation services.

Headquartered in Astana, Kazakhstan, JSC Kaztemirtrans (KTT) is a
100% owned subsidiary of KTZ. KTT is the owner and operator of
the largest freight railcar fleet in Kazakhstan. In 2014, the
group generated revenue of around KZT106.7 billion (approximately
Us$597 million), and adjusted EBITDA of approximately KZT47
billion (approximately US$263 million).



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


CERBERUS NIGHTINGALE: Fitch Rates EUR145MM 8.25% Sr. Notes 'B-'
---------------------------------------------------------------
Fitch Ratings has assigned Cerberus Nightingale 1 S.A.'s
(Cerberus) EUR145 million 8.25% senior notes due 2020 a final
rating of 'B-' and a Recovery Rating of 'RR6'.

The rating on the EUR530 million 7% senior secured notes due 2020
has also been affirmed at 'BB-'/'RR3'.

The assignment of the final rating follows the completion of the
Novescia acquisition and receipt of documents materially
conforming to information previously received.  The final rating
is the same as the expected rating assigned on Jan. 29, 2015.

As a result of the transaction, Cerberus is now the top holding
entity within the enlarged restricted borrowing group and its
debt obligations are included in our Issuer Default Rating (IDR)
analysis.  The IDR, which Fitch had previously assigned to Cerba
European Lab SAS, is therefore now transferred to the Cerberus
level and affirmed at 'B+' with Negative Outlook.

The inclusion of Cerberus within the restricted group is
supported by its notes benefitting from the same guarantees as
those provided to the existing senior secured notes, albeit on a
subordinated basis, by Cerba and certain operating subsidiaries.
Cerberus's notes also benefit from a second-ranking share pledge
over Cerberus Nightingale 2 S.A., an intermediate holding company
of Cerba, mature at the same time as the existing senior secured
notes and have the same call protection.

Cerberus's notes are rated two notches below the IDR to reflect
their subordination to prior-ranking obligations.  The 'RR6'
reflects poor recovery prospects (0-10%) of the senior notes in a
default scenario.  Fitch continues to expect above-average
recovery prospects within the 'RR3' range (51-70%) for Cerba's
senior secured noteholders.

The Outlook on the IDR is Negative, reflecting our expectations
of weaker consolidated credit metrics and higher integration risk
relative to previous bolt-on acquisitions.

KEY RATING DRIVERS

Reduced IDR Headroom

While the acquisition of Novescia increases the group's scale and
strengthens its position on the French laboratory testing market,
we expect funds from operations (FFO) adjusted gross leverage to
remain above 6.5x for 2015-2016 (adjusted for 12 month-
contribution of acquisitions).  In Fitch's view, weaker group
credit metrics over the near term reduce rating headroom at 'B+',
relative to immediate peers within the healthcare sector,
including Labco SA (B+/Stable).  In addition, Fitch expects free
cash-flow (FCF) generation to remain constrained in the low- to
mid-single digits (as a percentage of revenue), as a result of
higher cash interest, resulting from its debt-funded acquisition
growth strategy.

Successful Integration Critical for Deleveraging

In an environment of persistent pressure on reimbursement tariffs
from public entities, we believe that Cerba is reliant on
successfully integrating its acquisitions and extracting the
planned synergies (both at Novescia and at smaller bolt-on
acquisitions) to support mild deleveraging prospects over the
medium term.  Fitch considers the operational execution risk of
the Novescia acquisition to be potentially higher than smaller
bolt-on acquisitions for which the company has a good track
record.

Continued Expansion in Routine Labs

The ratings reflect Cerba's ability to take advantage of the
fragmentation of the French routine market.  The group's
acquisitive strategy enables it to broaden its network around
regional platforms while realizing synergies and increasing
scale. Fitch expects management to continue with this strategy
over the medium term and forecast the company will spend up to
EUR50 million p.a. on small bolt-on acquisitions over the next
three years.  A larger acquisition such as that of Novescia would
be considered as event risk.

Leading Clinical Laboratories Player

Cerba is one of the largest medical diagnostics groups in Europe.
Its resilient like-for-like performance, which Fitch expects to
continue, is underpinned by growing volumes and fairly stable
profit margins.  The group benefits from a sound reputation for
scientific expertise and innovation at the specialized end of the
market (23% of revenue for the last 12 months to September 2014,
adjusted for the Novescia acquisition).

Business and Geographical Diversification

The group's activities in its Central Lab division globally (8%
of sales) and its presence in the Belgian and Luxembourg routine
markets (12% of sales) provide some diversification and reduce
exposure to the French healthcare system.  Fitch considers that
upon expiry of the three-year agreement reached in October 2013
between the French clinical pathology laboratories unions and the
authorities (with the objective to achieve annual market growth
of 0.25%), Cerba would be at risk of further tariff pressure.

KEY ASSUMPTIONS

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

   -- Like-for-like sales growth of 0% to 1% per year with
      volumes offset by tariff pressure in main markets

   -- Stable profitability with EBITDA margin of around
      22%-Small bolt-on acquisitions of up to EUR50 million per
      year over the next three years

   -- Full year contribution of Novescia from 2016 onwards

   -- Stable capex around 3% of sales

RATING SENSITIVITIES

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

   -- Inability to integrate Novescia and extract the planned
      synergies such that FFO adjusted gross leverage remains
      above 6.5x and FFO interest coverage remains around 2.0x by
      2017 (pro forma for acquisitions)
   -- Further aggressively funded acquisition policy

Future developments that could lead to the Outlook being revised
to Stable include:

   -- Ability to integrate Novescia and smaller bolt-on
      acquisitions swiftly such that FFO adjusted gross leverage
      falls below 6.5x and FFO interest coverage increases
      towards 2.5x by 2017 (pro forma for acquisitions)

   -- EBITDA margin above 23% and FCF in the mid to high single
      digit on a sustained basis


CONSUMENTENBOND: To Consider Liquidation Amid Regulatory Pressure
-----------------------------------------------------------------
IPE News reports that Dutch consumer industry group
Consumentenbond has said it is exploring its options on the
future of its EUR70 million pension fund, including the possible
liquidation of the scheme.

Chairman Rob Bakker said "sharply increased" financial and
administrative burdens were proving a growing obstacle for
maintaining the scheme's independence, but he also warned that
the board's continuity was "at stake," according to IPE News.

The report notes that Mr. Bakker said four of the six current
trustees were over 60, and that he himself had decided to step
down at the end of the year, after 10 years at the helm.

According to Mr. Bakker, one of the options for the scheme will
be to join a non-mandatory industry-wide pension fund, such as
PGB, which does not require an incoming scheme to change its
pension arrangements, the report relates.

Mr. Bakker also noted that the best solution for pensioners could
be placing their pension rights with an insurer, which must
guarantee their benefits, the report says.

Another potential option could be the proposed APF, although
Bakker said this would depend on the ultimate shape of the new
pensions vehicle, the report notes.

The pension fund's policy funding -- the new criterion for
indexation and rights cuts -- was 115.1% as of the end of
February, the report relays.

The report says that the scheme said it expected this figure,
based on the 12-month average of current funding, to decrease.

In an additional clarification, Mr. Bakker cited "ever-expanding"
supervisory pressure from regulator De Nederlandsche Bank, the
report relays.

"Moreover," Mr. Bakker said, "the new financial assessment
framework is likely to raise costs for small pension funds," the
report relays.

Last year, the regulator fined the Consumentenbond scheme
EUR17,500 for twice failing to meet deadlines for the submission
of documents, the report adds.


ING GROEP: Moody's Assigns 'Ba2(hyb)' to AT1 Securities
-------------------------------------------------------
Moody's Investors Service has assigned a Ba2 (hyb) rating to the
upcoming 'high trigger' additional tier 1 (AT1) securities to be
issued by ING Groep N.V. (senior unsecured debt A3, on review for
downgrade). The Ba2 (hyb) rating is concurrently placed on review
for upgrade, in line with all other junior instruments issued by
ING Groep, following the introduction of Moody's new methodology,
specifically the loss-given-failure assessment.

These perpetual non-cumulative AT1 securities rank junior to
Tier 2 capital, pari passu with the other outstanding deeply
subordinated Tier 1 instruments and senior only to ordinary
shares in ING Groep. Coupons may be cancelled in full or in part
on a non-cumulative basis at the discretion of the issuer and/or
the financial regulator, or mandatorily if the issuer exceeds the
Distributable Items or Maximum Distributable Amount. The notes
will convert into equity if ING Groep's Basel 3 Common Equity
Tier 1 (CET1) ratio falls below 7%.

RATINGS RATIONALE

The Ba2 (hyb) rating assigned to ING Groep's upcoming AT1
securities is based on the likelihood of ING Groep's capital
ratio reaching the conversion trigger, the probability of a bank-
wide failure and loss severity, if either or both events occur.
Moody's assesses these probabilities using an approach that is
model-based, incorporating the group's creditworthiness, its most
recent CET1 level and other qualitative considerations,
particularly with regard to how the firm may manage its CET1
level on a forward-looking basis. Moody's rates these notes to
the lower of the model-based outcome and ING Groep's non-
viability security rating, which also captures the risk of coupon
suspension on a non-cumulative basis. Moody's approach to rating
'high trigger' contingent capital securities is described in its
Banks methodology, published on March 16, 2015.

ING Groep is not a banking operating entity and, as such, Moody's
does not assign a baseline credit assessment (BCA) to it.
However, the rating agency estimates this would correspond to the
baa1 BCA of its main operating entity ING Bank N.V. (A2 on review
for upgrade/Prime-1; BCA baa1), which accounts for the vast
majority of ING Groep's assets. In addition, the group's last
reported phased-in Basel 3 CET1 ratio was 13.5% as at end-2014.
Moody's used these two values as inputs to its model, which leads
to an output of Ba1 (hyb).

The rating assigned to the 'high trigger' notes is the lower of
the model-based outcome and the rating on the hypothetical
correspondent non-viability security which also captures the risk
of coupon suspension on a non-cumulative case. ING Groep does not
have outstanding non-viability securities; however, its
hypothetical non-viability security rating would be rated Ba2
(hyb), four notches below ING Bank's baa1 BCA. As such, the non-
viability security rating cap results in the rating assignment of
Ba2 (hyb) to ING Groep's 'high trigger' AT1 securities.

The Ba2 (hyb) assigned to these notes is on review for upgrade,
in line with ING Groep's junior instrument ratings, following the
introduction of Moody's new methodology, specifically the loss-
given-failure assessment. If ING's junior instrument ratings are
upgraded, then the rating on the hypothetical non-viability
security would correspondingly be higher and, as a result, it
would no longer constrain the Ba1 (hyb) model outcome. This, in
turn, would result in an upgrade of the rating on the high-
trigger instruments.

WHAT COULD CHANGE THE RATING UP/DOWN

The Ba2 (hyb) rating assigned to ING Groep's AT1 notes is on
review for upgrade and, all other variables being equal, it could
be upgraded by one notch to Ba1 (hyb). This would occur if the
ratings on ING Groep's junior instruments were raised upon
completion of the review because it would result in a one-notch
upgrade for the hypothetical non-viability instrument. The 'high
trigger' AT1 rating could also be upgraded if ING Bank's BCA were
to increase, leading to a higher model-output and subject to the
outcome being not higher than the rating on the correspondent
non-viability instrument. The rating on the AT1 could be affirmed
and its outlook stabilized if the rating on the hypothetical non-
viability instrument remained at the same level, at the
completion of the review, in line with the ratings of ING Groep's
junior instruments.

Conversely, downward pressure on the rating of this instrument
could materialize if ING Bank's BCA were to be adjusted downwards
by more than one notch and/or ING Groep's CET1 ratio would be
lower than its current level, as these two factors are the main
inputs to the model. Moody's would also reconsider the rating on
the 'high trigger' AT1 instrument, if the probability of a coupon
suspension were to increase.

LIST OF ASSIGNED RATINGS

  Pref. Stock Non-cumulative, Assigned Ba2(hyb); Placed Under
  Review for Upgrade

  Pref. Stock Non-cumulative Shelf, Assigned (P)Ba2; Placed Under
  Review for Upgrade


LOWLAND MORTGAGE 1 BV: Fitch Affirms 'BB' Rating on Class D Notes
-----------------------------------------------------------------
Fitch Ratings has affirmed 15 tranches of Lowland Mortgage Backed
Securities 1 B.V. (Lowland 1), Lowland Mortgage Backed Securities
2 B.V. (Lowland 2) and Lowland Mortgage Backed Securities 3 B.V.
(Lowland 3), a series of Dutch RMBS transactions partially backed
by the Nationale Hypotheek Garantie (NHG).

The mortgages in all transactions were originated and serviced by
SNS Bank N.V. (SNS, BBB+/Negative/F2) and its subsidiaries.  NHG
loans comprise 36% of the current outstanding pool in Lowland 1
and around 1% each in Lowland 2 and 3.

KEY RATING DRIVERS

Stable Performance

The affirmations reflect the stable performance of the underlying
assets.  As of the April 2014 payment date, three-month plus
arrears ranged from 0.48% (Lowland 2) to 1.11% (Lowland 1),
compared with the average Dutch prime three-month plus arrears of
0.84%.  The outstanding balance of loans with properties sold at
a loss ranged between 0.05% (Lowland 3) and 0.44% (Lowland 1).
Fitch expects the stable performance to continue due to the
quality of the securitized loans and a gradual recovery in the
Dutch housing market.

The higher arrears in Lowland 1 are driven by the non-NHG portion
of the pool.  Based on the loan-by-loan data, non-NHG loans
accounted for 80% of total arrears although they represent 64% of
the total pool.  As a result Fitch reduced the base case
foreclosure frequency of NHG loans by 25% in this pool.

Unhedged Transactions

There is no swap in place to hedge the interest rate mismatch
between the notes and the mortgage loans in any of the three
transactions.  Instead, the proportions of fixed- and floating-
rate notes issued are similar to the proportions of fixed- and
floating-rate loans in the pool, thereby providing natural
hedging for the interest rate risk.

Despite SNS and its subsidiaries having provided guarantees on
the portfolio's minimum weighted average margin and interest rate
to protect against a decline in the portfolio yield when loans
reset, Fitch has not given credit to this commitment and in its
analysis discounted any excess spread generated by the
structures.  The analysis showed that the credit enhancement
available is overall sufficiently robust to maintain the current
ratings.

RATING SENSITIVITIES

Deterioration in asset performance may result from economic
factors, in particular the increasing effect of unemployment.  A
corresponding increase in new defaults and associated pressure on
excess spread levels, beyond Fitch's assumptions, could result in
negative rating action, particularly for the junior tranches.

The rating actions are:

Lowland Mortgage Backed Securities 1 B.V.
Class A1 (XS0729888924) affirmed at 'AAAsf'; Outlook Stable
Class A2 (XS0729892108) affirmed at 'AAAsf'; Outlook Stable
Class B (XS0729892959) affirmed at 'AAsf'; Outlook Stable
Class C (XS0729893411) affirmed at 'BBB+sf'; Outlook Stable
Class D (XS0729893767) affirmed at 'BBsf'; Outlook Stable

Lowland Mortgage Backed Securities 2 B.V.
Class A1 (XS0887366135) affirmed at 'AAAsf'; Outlook Stable
Class A2 (XS0887366481) affirmed at 'AAAsf'; Outlook Stable
Class B (XS0887378064) affirmed at 'AAsf'; Outlook Stable
Class C (XS0887378577) affirmed at 'Asf'; Outlook Stable
Class D (XS0887378908) affirmed at 'BBsf'; Outlook Stable

Lowland Mortgage Backed Securities 3 B.V.
Class A1 (XS0988484878) affirmed at 'AAAsf'; Outlook Stable
Class A2 (XS0988486493) affirmed at 'AAAsf'; Outlook Stable
Class B (XS0988487202) affirmed at 'Asf'; Outlook Stable
Class C (XS0988487970) affirmed at 'BBB+sf'; Outlook Stable
Class D (XS0988488606) affirmed at 'BBB-sf'; Outlook Stable



===========
N O R W A Y
===========


LYNGEN MIDCO: Moody's Assigns Definitive B1 Corp. Family Rating
---------------------------------------------------------------
Moody's Investors Service has assigned a definitive B1 corporate
family rating (CFR) and a B2-PD probability of default rating
(PDR) to Lyngen Midco AS ("EVRY"). Concurrently, Moody's has also
assigned definitive B1 ratings to the NOK800 million Term Loan A,
NOK3,700 million equivalent Term Loan B and NOK1,000 million
Revolving Credit Facility, all issued on a senior secured basis
by Lyngen Bidco AS. The outlook on all ratings remains stable.

EVRY is ultimately controlled by funds advised by Apax Partners
which has successfully acquired 87.8% of the shares in EVRY ASA.

RATING RATIONALE

Moody's definitive ratings for the CFR and the instrument ratings
are in line with the provisional ratings assigned on 11th
February 2015. Moody's rating rationale was set out in a press
release on that date. The final terms of the senior facilities
are largely in line with the drafts reviewed to assign the
provisional ratings.

The Term Loan A was decreased by NOK100 million and the Term Loan
B was increased by the equivalent amount at closing, but the
overall quantum of debt of NOK4,500 million equivalent is
unchanged.

Moody's also notes that the voluntary offer to purchase the
shares of EVRY ASA received an acceptance level of 87.8%, below
the 90% acceptance level needed for a "squeeze out". As a result,
the 87.8% owned by funds advised by Apax partners gives it a more
than sufficient majority to control shareholder resolutions. The
debt pushdown to EVRY ASA and EVRY Sverige AB, following the
closing of the transaction, means there will be no cash leakage
to the minority shareholders as a result of the group servicing
its interest obligations under the senior facilities. However
Moody's notes that, while not currently planned, any potential
future dividends would have to be paid out to the minority
shareholders as well.

Following the closing of the transaction, EVRY appointed a new
CEO, Bjoern Ivroth. Given Mr. Ivroth's track record for business
transformation in his previous roles, Moody's expects Mr. Ivroth
to be proactive in implementing cost rationalization and margin
improvements. At the same time, Apax Partners has said it will
support EVRY in pursuing accretive M&A opportunities.

STRUCTURAL CONSIDERATIONS

The PDR of B2-PD, one notch below the CFR, reflects the all bank
debt nature of EVRY's capital structure with financial
maintenance covenants, leading to Moody's assumption of a 65%
recovery rate. The Term Loan A (due 2021), the Term Loan B (due
2022) and the Revolving Credit Facility (due 2021) are all senior
secured instruments and are all rated B1, in line with the CFR,
reflecting the fact that they are the only debt instruments in
the capital structure and all rank pari passu.

OUTLOOK

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

WHAT COULD CHANGE THE RATINGS - UP

Positive pressure could arise if the group demonstrates
disciplined financial policies at the same time as its cost
restructuring plan and organic growth strategy leading to
increased profitability and cash flows such that leverage falls
towards 3.5x on a sustainable basis and free cash flow to debt
moves towards the high single digits.

WHAT COULD CHANGE THE RATINGS - DOWN

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

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Business and
Consumer Service Industry published on the 8 December 2014. Other
methodologies used include the Loss Given Default for
Speculative-Grade Non-Financial Companies in the U.S., Canada and
EMEA published in June 2009. Please see the Credit Policy page on
www.moodys.com for a copy of this methodology

CORPORATE PROFILE

EVRY, headquartered in Oslo, Norway, is a leading Nordic IT
company providing services related to IT operations (42% of
revenues), solutions (25%) and consulting (33%) to Nordic
companies, financial institutions, national public sector
entities, municipalities and health authorities. EVRY has over 50
offices and 19 data centers across Norway and Sweden. Norway
accounts for around 67% of revenues, and Sweden around 30%. In
2014, EVRY reported revenues of NOK12,773 million and an EBITDA
of NOK1,290 million.



=============
R O M A N I A
=============


SPICUL: Enters Bankruptcy; Ilfov Plant Up for Sale
--------------------------------------------------
Gabriel Razi at Ziarul Financiar reports that Spicul, a name with
a 160-year history in the local industry, has entered bankruptcy
after four years of insolvency.

According to Ziarul Financiar, the company's plant at Rudeni
locality, Ilfov, has been put up for sale at an asking price of
EUR4.5 million.

Spicul is a Romanian bakery company.



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


PROMSBERBANK: Bank of Russia Revokes License
--------------------------------------------
Scott Rose at Bloomberg News reports that Bank of Russia has
revoked the license of Promsberbank.

Promsberbank was Russia's 266th largest by assets as of March 1,
according to Bank of Russia.


KEDR BANK: Moody's Withdraws 'B3.ru' Nat'l. Scale Deposit Rating
----------------------------------------------------------------
Moody's Interfax Rating Agency has withdrawn Kedr Bank's B3.ru
national scale deposit rating (NSR).

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

Domiciled in Krasnoyarsk, Russia, Kedr Bank reported total assets
of RUB26.1 billion, shareholders' equity of RUB2.4 billion and
net loss of RUB372.2 million as at June 30, 2014 under unaudited
IFRS.


KEDR BANK: Moody's Withdraws 'Caa2' Currency Deposit Ratings
------------------------------------------------------------
Moody's Investors Service has withdrawn Kedr Bank's Caa2 long-
term local and foreign-currency deposit ratings, Not Prime short-
term deposit ratings and ca baseline credit assessment (BCA). At
the time of the withdrawal, all the bank's long-term ratings
carried a developing outlook.

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

Domiciled in Krasnoyarsk, Russia, Kedr Bank reported total assets
of RUB26.1 billion, shareholders' equity of RUB2.4 billion and
net loss of RUB372.2 million as at June 30, 2014 under unaudited
IFRS.



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


BBVA: Moody's Withdraws Ratings on EUR1.25-Mil. Secured Loans
-------------------------------------------------------------
Moody's Investors Service has withdrawn the ratings of the Senior
Loan and Mezz. Loan in BBVA EUR1,251 million Secured Loans.

EUR1139 million (current outstanding balance of EUR776.5M)
Senior Loan, Withdrawn; previously on Jun 20, 2014 Affirmed Ba2

EUR112.2 million (current outstanding balance of EUR50.5M) Mezz.
Loan, Withdrawn; previously on Jun 20, 2014 Affirmed B1

RATINGS RATIONALE

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


PYME BANCAJA 5: Fitch Affirms 'Csf' Rating on Class D Notes
-----------------------------------------------------------
Fitch Ratings has affirmed PYME Bancaja 5, F.T.A. as:

  EUR40.7 million Class B (ISIN ES0372259038): affirmed at
  'BBsf'; Outlook Negative

  EUR24.1 million Class C (ISIN ES0372259046): affirmed at 'CCsf;
  Recovery Estimate 50%

  EUR28.8 million Class D (ISIN ES0372259053): affirmed at 'Csf';
  RE 0%

PYME Bancaja 5, F.T.A. is a static cash flow SME CLO originated
by Caja de Ahorros de Valencia, Castellon y Alicante (Bancaja),
now part of Bankia S.A. (BBB-/Negative/F3).  The note proceeds
were used to purchase a EUR1.15bn portfolio of secured and
unsecured loans granted to Spanish small and medium.

KEY RATING DRIVERS

The affirmation on the Class B note reflects the amortization the
transaction has seen over the last year.  The A3 note paid in
full in February 2014 and the B note has paid down EUR22 million
to EUR40.7 million. As a result credit enhancement has increased
to 33.1% from 27.1% over the last 12 months.

The Negative Outlook reflects a potential further rise in
defaults, following an increase in defaults to 39.3% from 30.9%
over the last 12 months.  Although delinquencies have been
falling any large obligors jumping to default could erode the
increases to credit enhancement made over the last year.

The class C notes have been affirmed at 'CCsf' with a recovery
estimate of 50% as the note is only partially backed by
performing collateral and will otherwise rely on recoveries.

The class D notes are affirmed at 'Csf' as these notes are backed
by the reserve fund, which is fully drawn.  The reserve fund has
been fully drawn since November 2013 and since then a principal
deficiency ledger balance of EUR3.9 million has built up (EUR2
million a year ago).

As the transaction has deleveraged (the remaining portfolio as a
percentage of initial portfolio balance has decreased to 8.2%
from 9.2%) the pool has become increasingly concentrated.  The 10
largest obligors now comprise 21% of the pool, up from 20% last
year.  The transaction's largest industry exposure is to real
estate at 43.6%.

The transaction features three swaps which hedge against reset
risk: one for each reset frequency at three months, six months
and 12 months.  The issuer pays a weighted average Euribor rate
(based on the reset rate distribution in the collateral) in
return for the 3m Euribor index payable on the notes minus a
spread of 15bps. As 3m Euribor is below 15bps the transaction now
pays on both legs of the swap, causing a further strain on the
transaction.

RATING SENSITIVITIES

In its rating sensitivity analysis Fitch found that a 25%
increase of the default probability (PD) would result in a
single-notch downgrade of the class B notes.  A 25% reduction of
the recovery rate by would also result in a single-notch
downgrade of the class B notes.



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


UKREXIMBANK: Fitch Lowers Issuer Default Rating to 'C'
------------------------------------------------------
Fitch Ratings has downgraded JSC The State Export-Import Bank of
Ukraine's (Ukreximbank) Long-term foreign currency Issuer Default
Rating (IDR) and senior debt rating to 'C' from 'CC'.  The bank's
other ratings are unaffected by these rating actions.

KEY RATING DRIVERS

The downgrade reflects Fitch's view that default by the bank on
its external debt obligations is now inevitable.  This follows
the public announcement by the bank on March 27, 2015, on
initiation of talks with the holders of its USD750 million
eurobond notes to extend the notes' maturity from April 27, 2015,
to July 27, 2015.  This short-term extension is necessary to
"negotiate a long-term solution with the noteholders in
accordance with the targets established in the four-year
USD17.5bn extended fund facility for Ukraine approved by the IMF
on 11 March 2015".

Apart from the USD750 million eurobond due on April 27, 2015,
Ukreximbank has a USD600 million senior eurobond due in January
2018 and a USD125 million subordinated bond due in February 2016.
Fitch expects these bonds to also be the subject of negotiations
with creditors.

RATING SENSITIVITIES

Fitch expects to downgrade Ukrexim's Long-term foreign-currency
IDR to 'RD' (Restricted Default) if the bank does not repay its
outstanding eurobond on April 27.  The ratings of the three
outstanding bonds are now all at the lowest possible levels for
instrument ratings, and so would not be subject to further
downgrades in case of a restructuring.

The rating actions are:

Ukreximbank:

  Long-term foreign currency IDR: downgraded to 'C' from 'CC'

  Senior unsecured debt of Biz Finance PLC: downgraded to 'C'
  from 'CC, Recovery Rating 'RR4'

  Long-term local currency IDR: 'CCC', unaffected

  Subordinated debt: 'C'/Recovery Rating 'RR5', unaffected

  Short-term foreign currency IDR: 'C', unaffected

  Support Rating: '5', unaffected

  Support Rating Floor: 'No Floor', unaffected

  Viability Rating: 'ccc', unaffected

  National Long-term rating: 'AA-(ukr)'; Outlook Stable,
  unaffected


UKRGAZPROMBANK: Declared Insolvent; Deposit Fund Takes Over
-----------------------------------------------------------
Volodymyr Verbyany at Bloomberg News reports that Ukraine's
Deposit Fund said Ukrgazprombank has been declared insolvent.

According to Bloomberg, the fund said in e-mailed statement it
will take temporary management over Ukrgazprombank, which has
assets of around UAH1.4 billion.

Headquartered in Kyiv, Ukrgazprombank provides commercial banking
services to individuals and corporate clients in Ukraine.



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


ALBA 2015-1: S&P Assigns Prelim. 'BB-' Rating to Class E Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned preliminary credit
ratings to Aggregator of Loans Backed by Assets 2015-1 PLC (ALBA
2015-1)'s class A to E notes.  At closing, ALBA 2015-1 will also
issue unrated class Z notes and subordinated notes.

ALBA 2015-1 is a securitization of first-lien U.K. nonconforming
residential mortgage loans. Edeus Mortgage Creators Ltd.,
Kensington Mortgage Company Ltd., Amber Homeloans Ltd., and
Paratus AMC Ltd. (formerly known as GMAC-RFC Ltd.) originated the
provisional pool's underlying collateral, which consists of
first-lien U.K. owner-occupied and buy-to-let nonconforming
residential mortgage loans.

At closing, the issuer will purchase an initial portfolio of U.K.
residential mortgages from the seller (Ertow Holdings Ltd.),
using the note issuance proceeds to purchase the rights to the
mortgage pool.

This will be the seventh ALBA transaction that S&P rates and the
first this year.

The collateral pool consists of first-lien U.K. nonconforming
residential mortgage loans, mostly originated between 2006 and
2007.  All of the loans will pay a floating rate of interest
throughout the transaction's life.  The portfolio's weighted-
average indexed current loan-to-value ratio is 80.19% (based on
S&P's methodology).

The notes' interest will be based on an index of one-month
sterling LIBOR, while the underlying collateral contains loans
that are linked to the Bank of England Base Rate, three-month
sterling LIBOR, or to a standard variable rate.  The transaction
will not benefit from a swap.

Any excess spread in this transaction is used to redeem the rated
notes.  Under a scenario where excess spread is generated and
applied to redeem the rated notes, overcollateralization would
increase.

S&P's preliminary ratings reflect its assessment of the
transaction's payment structure, cash flow mechanics, and the
results of S&P's cash flow analysis to assess whether the notes
would be repaid under stress test scenarios.  Subordination,
overcollateralization, and the rated note reserve fund provide
credit enhancement to the notes that are senior to the unrated
class Z notes.  Taking these factors into account, S&P considers
the available credit enhancement for the rated notes to be
commensurate with the preliminary ratings that S&P has assigned.

RATINGS LIST

Aggregator of Loans Backed by Assets 2015-1 PLC
Sterling-Denominated Residential Mortgage-Backed Floating-Rate
Notes (Including Unrated Notes)

Class                Prelim.          Prelim
                     rating           amount
                                    (mil. oe)

A                    AAA (sf)            TBD
B                    AA (sf)             TBD
C                    A (sf)              TBD
D                    BBB+ (sf)           TBD
E                    BB- (sf)            TBD
Z                    NR                  TBD
Subordinated notes   NR                  TBD

NR--Not rated.
TBD--To be determined.


ALBA TOWN: Retail Unit Sold in GBP705,000 Deal
----------------------------------------------
Daily Record reports that appointed liquidators to property firm
Alba Town Three LLP have sold a retail unit let to Tesco in
Glasgow's Merchant City area for GBP705,000.

Graham + Sibbald acting for the appointed liquidators, said the
sale of the 5,530 sq. ft. property at 50 High Street Glasgow
reflects a net initial yield of 7.53 per cent, according to Daily
Record.

Tesco has leased the property until 2031.

The buyer has not been disclosed.

"I am delighted to get this one over the line having had to re-
market following our previous prospective purchaser withdrawing
from the deal," the report quoted Gregor Brown of Graham +
Sibbald's Glasgow office, as saying.

"We were able to get the property under-offer fairly quickly and
this highlights the steady demand for well let retail
investments," Mr. Brown said, the report relays.

Alba Town Three LLP, and Alba Town Two Ltd and directors Andrew
Borthwick and Hugh Pringle were behind the Alba Town 35 flat and
penthouse development on the corner site at the junction of Bell
Street and High street in Merchant City, the report notes.

Alba Town Three LLP, and Alba Town Two Ltd were placed in
administration in 2011, with Alba Town Three LLP reporting in
2010 abbreviated accounts bank loans of GBP5.07 million falling
due within one year, the report discloses.

The LLP stated the loan, from commercial property lender Dunbar
Bank, was secured by a first ranking security over the
development, a GBP6.24 million loan guarantee from Alba Two Ltd
and personal guarantees of GBP500,000 from Borthwick and Pringle,
the report relays.

Alba Town Three LLP was placed into administration in May 2011
and Alba Two Ltd was placed into administration the following
month, the report notes.

The Court ordered both companies to be wound up in February of
last year, the report adds.


CLOSED LOOP: On Brink of Collapse Following Oil Price Drop
----------------------------------------------------------
Sarah Butler at The Guardian reports that Closed Loop Recycling
is facing possible collapse after being squeezed between a slump
in global oil prices and a supermarket price war.

According to The Guardian, the company could be forced to call in
administrators within days because clients have cut back on
buying recycled plastic.

Chris Dow, chief executive of Closed Loop, said the company was
in urgent need of financial support, The Guardian relates.

"Our customers want to buy recycled plastic but they don't want
to pay more [than virgin plastic].  Without the support of the
industry or the government, it is inevitable we will go into
administration," The Guardian quotes Mr. Dow as saying.

Closed Loop says it would cost just 0.1p per two-pint plastic
milk bottle to secure the future of the company.

Based in Dagenham, Closed Loop is Britain's biggest recycler of
plastic milk bottles.  It produces more than 80% of recycled
plastic used in the UK's milk bottles.


DRAX POWER: S&P Affirms 'BB' Corp. Credit Rating
------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its 'BB'
long-term corporate credit rating, and its 'BB+' senior secured
issue ratings, on U.K. power generator Drax Power Ltd.  S&P also
assigned its 'BB' rating to Drax Group PLC, the holding company
that owns Drax Power Ltd.  The outlook on both ratings is stable.

In addition, S&P assigned its 'B' long-term issue rating to the
company's proposed long-dated, optionally deferrable, and
subordinated hybrid capital securities to be issued by Drax
Group. The amount of the transaction remains subject to market
conditions.

"We assigned our 'BB' rating to Drax Group in line with our group
rating methodology.  The rating is at the same level as the group
credit profile (GCP) of the consolidated Drax group, which we
determine based on the business risk profile of the operating
subsidiary Drax Power and the credit metrics of the group at the
level of Drax Group PLC," S&P said.

"Our affirmation reflects our base-case expectation that Drax
Power can sustain credit metrics in line with its guidelines for
an "intermediate" financial risk profile.  We forecast that
Drax's ratio of funds from operations (FFO) to debt will remain
solid, substantially exceeding 30% over the rating horizon, but
we recognize as a constraint the group's weak discretionary-cash-
flow-to-debt ratios on the back of its continued biomass
conversion and supply chain optimization.  The company is now in
its peak capital expenditure (capex) phase as it completes the
conversion of three of its six units to biomass, and expands its
supply chain activities in the U.S.  The ratios are supported by
the proposed hybrid issuance, which aims to mitigate the impact
of the continuing U.K. power price decline and spread
volatility," S&P added.

S&P's base-case forecast for Drax assumes:

   -- Profitability to be supported by the conversion to biomass
      and the subsidized revenues offsetting declining margins in
      coal.  High capex of GBP650 million-GBP700 million in 2013-
      2017, resulting in negative discretionary cash flows and
      rising Standard & Poor's-adjusted debt.  Proposed hybrid
      issuance to go ahead.

   -- Cash balances that the company could use instead of its
      letter of credit facility to post collateral on trading
      contracts.

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

   -- EBITDA margins of 11%-13% in 2015 and 2016.
   -- FFO to debt of 50%-60% in 2015 and 2016.
   -- FFO cash interest coverage of 8x-11x in 2015 and 2016.
   -- Negative discretionary cash flows in 2015 and 2016.

S&P's view of Drax's "fair" business risk profile combines S&P's
assessment of its "weak" competitive advantage with its
"satisfactory" profitability.  The competitive advantage score
reflects that Drax remains a predominately coal-fired generator,
which exposes it to market prices for commodities and power, and
is subject to rising regulatory and environmental constraints.

These weaknesses are partly offset by Drax's important position
in the U.K. power markets, accounting for about 7% of generation
capacity.  The company has efficient, well-maintained, and
flexible generation turbines that have demonstrated a strong
operational track record in recent years.  In addition, Drax has
an active hedging policy, which aims to hedge the majority of the
company's output over two to three years, thereby reducing, to a
degree, intrayear swings in earnings.

S&P views Drax's plan to gradually transform itself into a
predominantly biomass-fueled generator as a positive development,
because it will reduce the company's exposure to coal and
increase the proportion of its earnings from subsidized
renewables generation.  In the longer term, decreasing dependence
on coal might help strengthen Drax's business risk profile.  In
the near term, however, S&P considers that there is a range of
execution risks associated with biomass conversion, including
operational, procurement, and political risks.

S&P considers the proposed securities to have "intermediate"
equity content until their respective first call dates because
they meet S&P's criteria in terms of subordination, permanence,
and coupon deferability at the company's discretion during this
period.

S&P arrives at its 'B' issue rating on the proposed securities by
notching down from its 'BB' corporate credit rating on Drax
Group. The three-notch differential between the issue rating and
the corporate credit rating reflects S&P's notching methodology,
which calls for:

   -- A two-notch deduction for subordination because the rating
      on Drax Group is speculative grade (that is 'BB+' or
      lower); and

   -- An additional one-notch deduction for payment flexibility
      to reflect that the deferral of interest is optional.

The notching of the proposed securities reflects S&P's view that
there is a relatively low likelihood that the issuer will defer
interest.  If this view were to change, S&P could increase the
number of downward notches that it applies to the issue rating.

In addition, to reflect S&P's view of the intermediate equity
content of the proposed securities, S&P allocates 50% of the
related payments on these securities as a fixed charge and 50% as
equivalent to a common dividend, in line with S&P's hybrid
capital criteria.  The 50% treatment of principal and accrued
interest also applies to S&P's adjustment of debt.

Although the proposed securities are long-dated, they can be
called at any time for changes in tax deductibility, gross-up,
rating methodology, or in the case of a change of control.

The issuer can redeem the securities for cash as of their first
call date (which S&P understands will be in six years from
issuance) and every five years thereafter.  Subject to certain
exceptions, the issuer intends--but is not obliged--to replace
the instruments.  In S&P's view, this statement of intent
mitigates the issuer's ability to repurchase the notes on the
open market. Furthermore, S&P sees the repurchase as unlikely due
to Drax's commitment to maintain a strong balance sheet during
its biomass expansion phase.

S&P understands that the interest to be paid on the proposed
securities will increase by 25 basis points (bps) six years after
issuance.  The scheduled maturity of the hybrid is 21 years after
issuance.  For issuers in the 'BB' category, S&P views a
remaining life of 15 years as sufficient to support credit
quality and achieve "intermediate" equity content.  The
instrument's documentation specifies that if Drax Group is
upgraded to investment grade -- that is, 'BBB-' or above -- the
maturity of the hybrid securities will extend by five years in
order to maintain the instrument's permanence.

At the first call date in year six, as the instrument will have
less than 15 years (less than 20 years if Drax is investment
grade) to maturity, S&P will no longer view equity content as
"intermediate."  Although S&P believes that the loss of equity
content could be seen as an incentive to redeem, it believes that
this should not prevent us from assessing the instrument as
"intermediate" currently as the issuer has underpinned its
willingness to maintain or replace the securities, despite the
loss of the preferential treatment, in a statement of intent.

In S&P's view, the issuer's option to defer payment on the
proposed securities is discretionary.  This means that the issuer
may elect not to pay accrued interest on an interest payment date
because it has no obligation to do so.  However, the issuer is
obliged to settle deferred interest payment five years
after deferral.  S&P see this as a negative factor, but it
believes that five years should give the company sufficient time
to implement a turnaround.

The proposed securities (and coupons) are intended to constitute
direct, unsecured, and subordinated obligations of the issuer,
ranking senior to their common shares.

The outlook on Drax Power Ltd. is stable, reflecting S&P's view
that the company's credit metrics will remain commensurate with
the rating, despite increased and partly debt-funded capital
investment associated with the biomass conversion program.  S&P
considers an adjusted FFO-to-debt ratio of at least 30% as
commensurate with Drax's "intermediate" financial risk profile.
That said, S&P anticipates that Drax will maintain sufficient
headroom with FFO-to-debt above 45% during the expansion phase,
when S&P expects discretionary cash flow-to-debt to be in the
"highly leveraged" category.

"We could lower the rating if Drax's business risk profile were
to materially weaken, or if its credit metrics were to fall below
our current expectations, such that its adjusted FFO to debt
would fall below our guidelines for the rating for an extended
period. We consider that, until the high capex phase is complete,
business risk will remain constrained by execution risk
surrounding Drax's biomass conversion strategy, which includes a
range of construction, operational, and political risks.
Although our base case anticipates a solid recovery in metrics
from 2015 or 2016, the adjusted FFO-to-debt ratio could still
foreseeably fall below 30% if Drax was to encounter unexpected
problems, and at the same time power prices and spreads were to
become materially less supportive," S&P said.

S&P considers that the likelihood of an upgrade will be limited
until the biomass conversion plan is substantially complete.
After that, S&P foresees that Drax's credit metrics could
strengthen to levels consistent with a higher rating.  This said,
any upgrade would be contingent on Drax maintaining a shareholder
distribution policy that ensures that the recovery in metrics is
sustainable.


GB GROUP: Cost of Collapse to be Confirmed Next Month
-----------------------------------------------------
Grant Prior at Construction Enquirer reports that the full cost
to subcontractors of the collapse of the GB Group will be
revealed early next month.

Administrators at BDO have confirmed a timetable to the Enquirer
for details of the total trade debt owed by the company.

"The Joint Administrators are in the process of reviewing the
companies' finances and executing a plan to maximize recoveries
for creditors and will report to creditors within eight weeks of
their appointment, setting out their proposals for dealing with
the assets of the companies," the report quoted a spokesperson
for BDO as saying.

GB called in the administrators on March 9 with the latest eight
week deadline running-out on May 4, the report relates.

The report discloses that the collapse of GB has already claimed
a number of victims among trade contractors.

Stockport based pre-cast specialist SCC fell into administration
late last month after it lost out on a GBP1 million payment from
GB on its Leeds Hilton projects, the report relays.

Leeds-based civil engineer McFadden Construction was also forced
into administration following a GBP700,000 loss on the same GB
job, the report says.

The Enquirer has spoken to scores of suppliers still reeling from
the failure of GB, the report adds.


MALLINCKRODT PLC: S&P Assigns 'BB-' Rating to US$1.2BB Sr. Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' issue-level
rating to the proposed US$1.2 billion of senior unsecured notes
co-issued by Mallinckrodt International Finance S.A. and
Mallinckrodt CB LLC and guaranteed by parent Mallinckrodt PLC and
some of its subsidiaries.  Proceeds will be used to partly fund
subsidiary Mallinckrodt Enterprises LLC's purchase of Ikaria Inc.
The recovery rating is '4', reflecting S&P's expectation of
average (30% to 50%) recovery -- on the high end of the range --
in the event of payment default.  The 'BB-' issue-level rating
and '4' recovery rating on the $900 million 5.75% senior
unsecured notes due August 2022 are unchanged.

The 'B' issue-level rating and '6' recovery rating on the US$300
million 3.50% senior unsecured notes due April 2018 and the
US$600 million of 4.75% senior unsecured notes due April 2023 are
also unchanged.  Those tranches of senior unsecured notes are
guaranteed only by parent Mallinckrodt PLC, do not have a
guarantee from its subsidiaries, and are effectively subordinated
to the new senior unsecured notes with respect to subsidiaries
guaranteeing the new senior notes.  That is the primary reason
why the proposed new notes and the notes due August 2022 have a
higher recovery rating.

Mallinckrodt's business risk profile benefits from the product
and revenue diversity afforded by three businesses: Specialty
Brands, Specialty Generics, and Global Medical Imaging.  Those
benefits are partially offset by the relatively small scale of
marketed products with only one drug, Acthar Gel, expected to
reach $1 billion in sales in 2015.  The late-stage pipeline
within the company's branded segment is also quite weak with only
one product that has completed Phase III clinical trials.  S&P
continues to view the company's business risk profile as "fair".
S&P do not view the addition of Ikaria as a significant enough
event to alter S&P's view of business risk at this time, given
Ikaria's limited pipeline, integration risk, and the ongoing
paragraph IV challenge to Ikaria's main product, INOMAX.

The debt issuance is within S&P's expectations and it expects
2015 leverage to increase to more than 5x, owing to only partial
year EBITDA contribution from Ikaria and the use of existing cash
in the acquisition financing.  By fiscal year end 2016, S&P
expects leverage to decline to 4.6x due to 12 months of EBITDA
contribution from Ikaria and a significant improvement to the
company's cash balance from around $600 million in internally
generated free cash flow.  This supports S&P's assessment of
financial risk as "aggressive".

The corporate credit rating on Mallinckrodt is 'BB-' and the
outlook is stable.

RATINGS LIST

Mallinckrodt PLC
Corporate Credit Rating           BB-/Stable/--

New Rating
Mallinckrodt International Finance S.A.
Mallinckrodt CB LLC
$1.2 Bil. Senior Unsec. Notes     BB-
   Recovery Rating                 4H


SCC LTD: Enters Administration After Customer's Bankruptcy
----------------------------------------------------------
Company Rescue reports that Building contractor, SCC Ltd, has
been forced into administration after its main customer, GB
Building Solutions, collapsed a few weeks ago.

SCC Ltd manages a design build and manufacturing site in
Stockport as well as small premises in Sheffield, employing 149
staff.

The report notes that joint administrators, Paul Dumbell --
paul.dumbell@kpmg.co.uk -- and Brian Green --
brian.green@kpmg.co.uk -- from KPMG, are overseeing the process
and will consider all options for the business going forward.
Most staff have been sent home during this time.

The report relates that Mr. Dumbell said, "While the company had
been experiencing difficult trading conditions in recent months,
the insolvency earlier this month of one of SCC's key customers,
GB Building Solutions Ltd, had left a significant hole in the
company's cash flow, such that there was little option but to
appoint administrators."

"Over the coming days, we will be working closely with the
management team and with suppliers and customers to explore all
options for the business," the report quoted Mr. Dumbell as
saying.

The report says that the company's customer, GB Building
Solutions, entered administration on March 9, 2015, due to poor
cash flow and "short-term working capital issues".  Various big
projects run by the company had to be stopped, including a London
student development, a Hilton hotel, Greenwich Peninsula plots
and a Sunderland Premier Inn, the report relays.

Often when a large company goes into administration, there is
usually a 'domino effect' as the loss of business causes
customers and connected suppliers to struggle financially, the
report discloses.  It is important for companies to work with
various suppliers and businesses, if possible, to ensure the
company is protected in the event of a supplier becoming
insolvent, the report adds.


SKY BET: S&P Assigns 'B' Corp. Credit Rating; Outlook Stable
------------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'B' long-term corporate credit rating to Cyan Blue Holdco 2 Ltd.,
a holding company for U.K.-based gaming and betting group Sky
Betting & Gaming (Sky Bet).  The outlook is stable.

At the same time, S&P assigned its 'B' issue rating to Sky Bet's
GBP35 million revolving credit facility due 2021 and to its
GBP340 million senior secured loan due 2022.  The recovery rating
on this loan is '3', indicating S&P's expectation of average
(50%-70%) recovery in the event of a payment default.

The ratings on Sky Bet reflect S&P's assessment of the company's
"weak" business risk, and its "highly leveraged" financial risk
profiles, underpinned by S&P's financial sponsor-6 assessment of
Sky Bet's financial policy.

The rating is primarily constrained by S&P's assessment of Sky
Bet's financial risk profile as highly leveraged, which in turn
is underpinned by S&P's view of the financial policy of its
controlling shareholder, CVC Capital Partners (CVC), as
aggressive.  S&P also takes into account Sky Bet's ability to
increase its leverage beyond the current relatively modest level,
as permitted in the bank loan documentation.

Sky Bet's reported debt primarily comprises the GBP340 million
senior secured loan.  S&P includes in its adjusted debt
calculation about GBP150 million of subordinated vendor and
shareholder loans that do not require payment of interest in cash
and are provided to Sky Bet by Sky PLC.  About GBP290 million of
shareholder loans provided by private equity firm CVC Capital
Partners (CVC), which bear largely similar characteristics to
those provided by Sky PLC, are treated as equity-like due to the
controlling ownership of CVC over Sky Bet, according to S&P's
criteria.

S&P believes Sky Bet's low capital intensity and working capital
benefitting from customer prepayments support the company's
ability to generate robust operating cash flow.  On a Standard &
Poor's adjusted basis, S&P estimates that the funds from
operations (FFO)-to-debt ratio will be 5.5%-6.5% and debt to
EBITDA will range between 7.3x and 7.8x for 2015.  These ratios
would be 8.5%-9.5% and 4.8x-5.3x, respectively, excluding the
non-cash pay vendor and shareholder loans from Sky.

Sky Bet is an online betting and gaming company operating almost
entirely in the U.K.  In S&P's opinion, Sky Bet's business risk
profile is primarily constrained by the concentration risk of its
operations, which focuses on just the online and mobile segment
of the overall gaming and betting market.  This is underpinned by
the absence of material overseas operations; the company's modest
share in the U.K.'s overall gaming market; and the threat to
historically solid profitability from execution risk related to
Sky Bet's carve out from Sky PLC (Sky).  S&P also takes into
account regulatory risk, such as that related to the new point-
of-consumption tax introduced in December 2014.

The stable outlook reflects S&P's expectation that Sky Bet will
continue to grow its business in the U.K. and will be able to
maintain its profitability and positive free operating cash flow
generation at the levels outlined in S&P's base-case scenario.
The outlook also reflects S&P's anticipation that any surplus
cash accumulated in the business will be used for either growth
investment or shareholder remuneration, reflected in S&P's
assessment of the financial policy as aggressive.  S&P sees a
debt-to-EBITDA ratio of about 7x-8x (5x-6x excluding the non-cash
pay vendor and shareholder loans from Sky) as commensurate with
the current rating.  Sky Bet's operational links with Sky and its
ability to use the brand name are necessary conditions for S&P to
maintain the current rating.

S&P could take a negative rating action if Sky Bet's earnings
were significantly weaker than S&P assumes in its base case.
This could occur in the event of unforeseen costs resulting from
the company's separation from Sky, unfavorable changes in
regulation, or intensified competition.  S&P could also lower the
rating if the company raised additional debt such that its cash-
pay leverage materially exceeded the 5x-6x range accommodated for
in the bank loan documentation, or if Sky Bet's EBITDA margin
fell and stayed significantly below 28%.  Negative free operating
cash flow or a weakening in Sky Bet's liquidity position could
also lead to a downgrade.

S&P could upgrade Sky Bet if it posted debt to EBITDA of
sustainably less than 5x and committed to maintaining leverage at
that level.  Similarly, S&P could upgrade Sky Bet if it showed
material growth in earnings, including an EBITDA margin higher
than 30%, while generating substantial free operating cash flow.
Any upgrade would depend on S&P's view of the company's ability
to sustain such growth over a prolonged period, while maintaining
debt to EBITDA not materially higher than its current level.


TLG-FINCO PLC: Moody's Assigns 'B3' Corp. Family Rating
-------------------------------------------------------
Moody's Investors Service has assigned a B3 Corporate Family
Rating (CFR) and a B2-PD Probability of Default Rating (PDR) to
TIG Finco Plc, the new intermediate holding company of the
Towergate Group. Moody's also assigned a Ba3 super senior secured
debt rating and a B3 senior secured debt rating to the proposed
instruments to be issued by TIG Finco Plc. The ratings outlook is
stable.

The ratings are based on the assumption that the proposed
consensual debt restructuring of the group completes with terms
that do not differ materially from those received to date.

Moody's has also taken various actions on Towergate's existing
ratings and the existing CFR and PDR on Towergate Holdings II Ltd
will be withdrawn upon completion of the debt restructuring
transaction.

RATINGS RATIONALE

-- CORPORATE FAMILY RATING --

Moody's says that the B3 CFR is driven by Towergate's strong
position in the UK insurance broker market, good product
diversification and attractive EBITDA margins. In addition, the
consensual debt restructuring of the group will significantly
reduce Towergate's debt burden and interest costs and enhance the
group's liquidity position. However, these strengths are somewhat
offset by Moody's expectation that Towergate's organic revenue
growth, bottom line profitability and cash flows will remain
constrained, at least over the next 12 to 18 months.

Moody's views Towergate's strong position in the UK insurance
intermediary market as a key credit strength. Towergate ranks
among the largest UK insurance brokers and offers specialty
coverage across a number of niche segments, where the group
enjoys attractive commission rates and benefits from its scale,
expertise and relatively high barriers to entry.

Towergate also has a diversified business model and provides
various services across the insurance value chain without
carrying insurance risk on its own balance sheet. The group
consists of five divisions including: Broking (which accounted
for 45% of the group's 2014 revenue), Direct (16%), Underwriting
(22%), mortgage broking solutions via Paymentshield (14%) and
Networks (3%). Partially offsetting these diversification
benefits is the group's dependence on the UK market, where
trading conditions are difficult.

Moody's expects that the difficult trading conditions in the UK
will continue constraining Towergate's revenue and, consequently,
EBITDA growth, at least over the next 12-18 months. The
significant reduction in Towergate's EBITDA margin in 2014 was
also driven by the adverse impact of the group's on-going "change
program", which in Moody's opinion will continue to negatively
affect profitability in the short term.

Upon completion of the proposed debt restructuring, Towergate's
reported gross debt will halve to GBP500 million (YE2014: GBP1
billion), thereby reducing reported net leverage to 3.5x from
9.6x on a YE2014 pro-forma basis. Furthermore, the GBP125 million
(GBP50 million of equity and GBP75 million of super senior
secured notes) of new cash being injected into the group will
significantly strengthen Towergate's liquidity position. However,
given Moody's expectation that Towergate's EBITDA levels will
continue to reduce at least in the near term, debt-to-EBITDA
(which on a Moody's basis includes deferred consideration and
operating lease adjustments) is estimated to remain above 6.0x,
with relatively modest earnings coverage of interest over the
next 12 to 18 months.

In addition, despite the significant reduction in interest and
hedging expenses, Moody's forecasts that bottom line
profitability and cash-flows will remain suppressed in the short
term. This is based on Moody's expectation of further revenue
reductions and elevated expenses related to the group's change
program and other significant exceptional costs associated with
the debt restructuring. There also remains some uncertainty with
regard to potential redress costs related to issues surrounding
the sale and advice of two products, by Towergate Financial -- a
company the group sold earlier this month.

The B3 CFR on TIG Finco Plc incorporates the proposed consensual
debt restructuring, the completion of the group's change program
during 2015 as well as the successful implementation of other
material changes, including the new shareholder base and
management team.

-- NEW DEBT RATINGS --

Towergate's B2-PD PDR is one notch above the CFR. The PDR has
been derived from the LGD model and reflects Moody's assumption
of a 35% family recovery rate, which is customary for capital
structures with more than one tranche of senior secured debt and
no financial maintenance covenants.

Moody's Ba3/LGD2 ratings on Towergate's GBP75 million super
senior secured notes is three notches above the B3/LGD5 ratings
on Towergate's GBP425 million senior secured notes, reflecting
the super senior secured notes' priority over enforcement
proceeds. The debt ratings also incorporate Moody's view of the
value of the notes' secured status over all assets and 100% of
the shares of TIG Finco Plc and the benefit from upstream
guarantees.

-- EXISTING RATINGS --

As part of the consensual debt restructuring, Towergate Finance
plc will, through administration, transfer 100% ownership of
Towergate Insurance Limited and the group's operating entities to
TIG Finco Plc such that Towergate Finance plc along with
Towergate Holdings II Ltd will cease to exist. The existing RCF,
senior secured and senior unsecured debt obligations issued by
Towergate Finance Plc will be fully retired as part of this
transaction and Moody's will then withdraw the Ca CFR and D-PD
PDR ratings on Towergate Holding II Ltd.

STABLE OUTLOOK

The outlook on TIG Finco Plc's ratings is stable. This reflects
Moody's expectation that the successful execution of the group's
change program will stimulate organic revenue growth and reduce
expenses, thereby positively impacting the group's EBITDA, net
income and cash-flows. However, given that the group is still in
a transition period, at this juncture, there remains a degree of
uncertainty with regard to the timing and quantum of benefits.

WHAT COULD DRIVE THE RATING UP/DOWN

Moody's says the following factors could exert upward pressure on
the ratings: (1) the successful execution of change program; (2)
sustaining EBITDA margins above 25% with improving bottom line
profitability; (3) debt-to-EBITDA below 6.0x with EBITDA coverage
of interest consistently above 1.5x; and (4) free cash-flow as %
of debt consistently above 1%.

Conversely, Moody's added that the following factors could exert
downward pressure on the ratings: (1) a material increase in
reported financial debt above GBP 500 million or debt-to-EBITDA
above 8.0x; (2) continued weak bottom line profitability with
declining EBITDA margins; or (3) continued negative cash flows or
a weakening of the group's liquidity position.

Moody's has assigned the following ratings to TIG Finco Plc, with
a stable outlook:

Corporate Family Rating at B3

Probability of Default Rating at B2-PD

GBP425 million Backed Senior Secured Debt Rating at B3 (LGD5)

GBP75 million Backed Super Senior Secured Debt Rating at Ba3
(LGD2)

Moody's has taken the following rating actions on Towergate's
existing ratings:

  Towergate Holding II Ltd Corporate Family Rating affirmed at Ca

  Towergate Holding II Ltd Probability of Default Rating
  downgraded to D-PD from C-PD

  Towergate Finance Plc Backed Senior Unsecured Debt Rating
  affirmed at C / LGD6

  Towergate Finance Plc Backed Senior Secured Debt Rating
  upgraded to Caa1 / LGD1 from Caa2 / LGD2

  Towergate Finance Plc Backed Senior Secured Revolving Credit
  Facility Rating upgraded to Caa1 / LGD1 from Caa2 / LGD2

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Moody's
Global Rating Methodology for Insurance Brokers & Service
Companies published in February 2012. Other methodologies used
include Loss Given Default for Speculative-Grade Non-Financial
Companies in the U.S., Canada and EMEA published in June 2009.


VEDANTA RESOURCES: S&P Lowers CCR to 'BB-'; Outlook Negative
------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
foreign currency long-term corporate credit rating on Vedanta
Resources PLC to 'BB-' from 'BB'.  The outlook is negative.  At
the same time, S&P lowered its long-term issue ratings on the
company's guaranteed notes and loans to 'BB-' from 'BB'.  S&P
removed all the ratings from CreditWatch, where they were placed
with negative implications on Jan. 6, 2015.  Vedanta is a London-
headquartered oil and metals company with most of its operations
in India.

"We downgraded Vedanta because we expect the company's financial
performance to remain weak for at least 12 more months," said
Standard & Poor's credit analyst Mehul Sukkawala.  "Low oil
prices have hit Vedanta's cash flows.  Any delay in the ramp-up
of the company's aluminum production could put additional
pressure on the rating."

S&P expects Vedanta's ratio of funds from operations (FFO) to
debt (on a proportionate consolidation basis) to remain weak at
about 10% in fiscal 2016 (year ending March 31), compared with
7.5% in fiscal 2015.  However, S&P expects the ratio to recover
to more than 13% in fiscal 2017, assuming a stronger performance
of Vedanta's aluminum business.  S&P therefore continues to
assess Vedanta's financial risk profile as "aggressive."

S&P expects Vedanta to commission three potlines at its aluminum
smelter at Jharsuguda (in India's eastern state of Odisha) over
the next two years and one at subsidiary Bharat Alumiunum Co.
Ltd. (Balco) over the next 12 months.  Vedanta's higher zinc
production in India, focus on turning around its Zambia copper
operations, and our projection of a recovery in oil prices should
also enhance the company's operating performance.

Vedanta will continue to be exposed to India's evolving
regulations and operating conditions.  These factors have had an
adverse impact on the company's operating performance in the
past.

S&P expects Vedanta to continue to benefit from its low-cost
operations, particularly in the zinc and oil segments.  High
operational risks in some businesses (iron ore and copper in
Zambia), and exposure to volatile commodity prices temper these
strengths.  S&P therefore continues to assess the company's
business risk profile as "fair."

"The negative outlook reflects the risk of a delay in improvement
in Vedanta's operating performance because of challenges,
particularly for the aluminum operations," said Mr. Sukkawala.
This could result in the company's ratio of FFO to debt on a
proportionate basis not recovering to sustainably above 12% over
the next 24 months.  It could also lower the covenant headroom
and lead to refinancing pressure for the company's US$2 billion
maturities in mid-2016.

S&P may lower the ratings if it expects Vedanta's proportionately
consolidated ratio of FFO to debt to remain below 12% on a
sustained basis.  This could happen because of: (1) a significant
delay in ramp-up of production, particularly for aluminum at
Jharsuguda; (2) material weakness in commodity prices, especially
oil, zinc, and aluminum; or (3) organizational restructuring
resulting in significantly higher debt.

S&P could also downgrade Vedanta if: (1) the company faces
difficulties in arranging funds to refinance upcoming maturities;
or (2) covenant headroom reduces on account of a weaker operating
performance than S&P expects.

S&P could revise the outlook to stable if it expects Vedanta to
sustain the FFO-to-debt ratio above 12%.  This could happen if:
(1) the company's operating performance, especially its aluminum
business, improves in line with S&P's expectations over the next
12 months; or (2) Vedanta's organizational restructuring leads to
a limited increase in debt.  Low refinancing risk for the US$2
billion maturities in mid-2016 will also be necessary for the
outlook revision.


                            *********

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

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

Each Friday's edition of the TCR includes a review about a book
of interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/booksto order any title today.


                            *********


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

Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez,
Joy A. Agravante, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.

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

This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
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The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000 or Nina Novak at
202-362-8552.


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