TCREUR_Public/150415.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, April 15, 2015, Vol. 16, No. 73



BELARUS REPUBLIC: S&P Affirms 'B-/B' Sovereign Credit Ratings

C Z E C H   R E P U B L I C

EXCON STEEL: Bought by Steel Manufacturing for CZK96.125-Mil.


TALVIVAARA MINING: Commences Voting Procedure for Rescue Plan


CEGEDIM SA: S&P Raises CCR to 'BB-' on Disposal Completion


GREECE: Braces for Debt Default, Bailout Talks Ongoing


ASHFORD CASTLE: Gets Major Overhaul After Receivership
HOLLAND PARK: Fitch Affirms 'B-sf' Rating on Class E Notes


TEMIRBANK: S&P Affirms Then Withdraws 'B/B' Counterparty Ratings


MAGNIT PJSC: S&P Raises CCR to 'BB+', Outlook Negative

S L O V A K   R E P U B L I C

SLOVAKIA STEEL: Czech Export Bank Sues J&T Over Loan Guarantee


CANTABRIA I: Fitch Lowers Rating on Class D Notes to 'CCC'
PETERSEN ENERGIA: Sues YPF Over Losses Related to Nationalization


PA RESOURCES: Gunvor Intends to Withdraw Bankruptcy Petition


MATTERHORN TELECOM: Moody's Assigns 'B2' CFR; Outlook Stable
MATTERHORN TELECOM: S&P Assigns Prelim. 'B' CCR; Outlook Stable


STATE EXPORT-IMPORT: Fails to Secure Bond Maturity Extension

U N I T E D   K I N G D O M

AA BOND: S&P Assigns 'BB-' Rating to GBP735MM Class B2 Notes
CASH FINANCE: In Liquidation, Cuts 117 Jobs
EURASIAN RESOURCES: S&P Puts 'B-' CCR on Credit Watch Negative
GLASTONBURY 2007-1: Fitch Lowers Ratings on 5 Note Classes to D
GRETONE ENGINEERING: Buyer Sought for Firm

INTERNATIONAL GAME: Moody's Affirms 'Ba2' CFR; Outlook Stable
LEACH HOMES: Goes Into Liquidation
MOY PARK: Moody's Affirms 'B1' CFR After Tap Issue Announcement
MOY PARK: S&P Assigns 'B+' Rating to GBP100MM Sr. Unsecured Notes
PREMIERTEL PLC: Fitch Affirms 'BBsf' Rating on Class B Notes



BELARUS REPUBLIC: S&P Affirms 'B-/B' Sovereign Credit Ratings
Standard & Poor's Ratings Services affirmed its 'B-' long-term
and 'B' short-term sovereign credit ratings on the Republic of
Belarus.  The outlook is stable.


The ratings on Belarus are constrained by S&P's view of its low
institutional predictability and effectiveness, its weak external
position, and its inflexible monetary policies.  The ratings are
supported by the government's generally sound public finances and
the recent steps it has taken to adjust its economy to an
increasingly difficult external environment.  S&P's affirmation
incorporates its assumption that the government will repay its $1
billion Eurobond due in July 2015 with funds from official
creditors and other sources.

S&P thinks Belarus will be hurt by the depressed conditions in
Ukraine and Russia, which together receive 60% of Belarus'
exports.  Belarus has also lost competitiveness against these two
countries, even though the Belarusian ruble lost 60% of its value
against the U.S. dollar between February 2014 and February 2015
(with the Russian ruble and Ukrainian hryvnia weakening even more
over the same period).  S&P expects Belarus' exports of goods and
services will fall by 30% in dollar terms in 2015, while imports
shrink by almost 40%.  Taking into account Russia's waiver of
duties on refined oil products, representing about 2% of GDP
(Belarus previously paid these duties to Russia), S&P forecasts a
2015 current account deficit at 3% of GDP, down from more than 6%
of GDP in 2014.

"To address the country's imbalances, the government and the
National Bank of the Republic of Belarus (NBRB, the central bank)
have embarked on measures to curb Belarus' traditionally
expansionary policies.  In January 2015, the NBRB announced it
would permit a more flexible exchange rate policy.  It then
immediately devalued the Belarusian ruble by 25% against the U.S.
dollar, compared with the average exchange rate in December 2014
and introduced broad monetary base targeting.  It has also taken
steps to tighten monetary policies, such as raising policy rates
and constraining liquidity for commercial banks, while curtailing
directed lending by state-owned banks in early 2015.  The
government, which dominates the economy and has significant
influence on average wages, has expressed its commitment to
continue the 2014 policy of keeping wage growth below
productivity gains and to stick to its track record of budget
surpluses.  These adjustments -- ambitious in our view -- have
yet to be tested, especially in the context of upcoming
presidential elections in November 2015.  However, if
implemented, they could ease some of the squeeze on Belarus'
external and monetary profiles," S&P said.

Nevertheless, S&P anticipates that gross external financing needs
will remain material at close to 140% of current account receipts
(CARs) plus usable reserves, on average, for 2015-2018.  In
addition to the amortization requirements in the corporate and
financial sectors, the country will face another year of material
government debt service needs of approximately US$3.8 billion,
including the US$1 billion Eurobond bullet maturity in July 2015.

To bridge the external funding gap, S&P thinks Belarus'
government will increase its reliance on official loans and other
credits, principally from Russia.  In addition to the US$2
billion they provided to Belarus in 2014, the Russian authorities
have committed to advance further support in 2015, with the first
tranche of US$110 million already provided in March.  In addition
in March Belarus' applied for the new US$3 billion credit
facility from Russia-backed Anti-Crisis Fund of the Eurasian
Economic Community (with the final decision on disbursement
expected in May-June). Funding from the above sources will likely
enable Belarus to maintain its usable reserves near current
levels of about US$4 billion, of which approximately one-third is
held in gold (S&P excludes from reserves about US$730 billion in
foreign currency swaps that the NBRB has undertaken with
commercial banks).  At the same time, S&P anticipates that
Belarus' external debt, net of financial and public sector
external assets ("narrow net external debt," our preferred
measure of external indebtedness) will average 100% of CARs plus
usable reserves in 2015-2017.

On the fiscal side, reported general government on-budget
outturns have been relatively strong.

General government accounts showed moderate surpluses since 2011.
S&P expects the government will continue to report surpluses, in
part thanks to new export taxes, mainly on potash and crude oil.
S&P also views positively that the government's debt policy is
now supported by Belarus' legislated debt management framework
that sets internal limits on government debt to GDP at 45% and
annual foreign currency debt service to international reserves at

"Still, due to off-budget support for state-owned enterprises and
state banks, general government debt has increased in recent
years by an average 4% of GDP annually, excluding 2011, when
general government debt increased by 30% of GDP due to the 178%
devaluation of the Belarusian ruble against the dollar.  As a
result of further currency devaluation and off-budget support, we
expect government debt will increase annually by 4% of GDP, on
average, through 2018,including a hike of close to 10% in 2015
owing to exchange-rate adjustments.  Although we expect general
government debt, net of liquid assets, will remain well under 30%
of GDP over the same period -- due in part to the high negative
real interest rates on the 15% portion of government debt
denominated in local currency -- we incorporate into our
assessment the fiscal vulnerabilities linked to the 85% of
government debt denominated in foreign currency, the relatively
short-term maturity profile, and the contingent liabilities posed
by the state-dominated banking system and its directed lending
activity," S&P added.

"In addition to official external funding, we expect the
government will continue its foreign currency borrowing from the
domestic market to meet its 2015 borrowing requirement.  However,
in our view, public finance might turn challenging, especially
given the weak external environment and election year spending,
while shallow local financial markets might prevent raising the
fullamount of domestic foreign currency debt," S&P noted.

"In our view, policy predictability is weak in Belarus.  Final
decision-making is in the hands of the president, who controls
all branches of power.  The president's administration controls
all strategic decisions and sets the policy agenda, whereas the
government is a technocratic body that implements decisions.  We
consider accountability, and checks and balances to be weak.
Heavy dependence on Russia for financial, economic, and political
support also poses risks for Belarus, in our opinion.  Some
policy effectiveness exists, however, as shown by Belarus'
relatively high ranking on the U.N.'s Human Development index (53
out of 187 in 2014)," S&P said.

Belarus' GDP per capita, estimated at $8,100 at the exchange rate
against the Belarusian ruble at year-end 2014, is high compared
with similarly rated peers'.  This is partly due to productivity,
which the relatively high human development indicators suggest,
and to rapid growth reported in the 2000s.  However, Belarus'
economic prospects will likely be depressed in the next few
years. S&P thinks that the weak external environment (chiefly the
recessions in Russia and Ukraine) and the so-far modest progress
on structural reforms will suppress GDP growth rates that are
unlikely to exceed 1% on average by 2017, excluding the 3.5%
contraction in GDP that S&P forecasts for 2015.

S&P thinks the recently announced changes to monetary policy,
such as the shift to a more flexible exchange rate, could
increase the NBRB's room to maneuver to respond to domestic
financial conditions.  However, annual inflation averaged just
over 30% in 2010-2014, which weighs on our assessment of the
NBRB's credibility and effectiveness.  In the context of currency
devaluation, growing tax rates, and administrative price
liberalization, inflation is likely to stay in the double digits
in the next few years, with the consumer price index exceeding
20% in 2015.  In addition, high dollarization of loans and
deposits in the banking system weakens our assessment of Belarus'
monetary policy transmission mechanism.  The share of dollar-
denominated loans and deposits exceeded 60% of the total as of
end-January 2015.  Lending in foreign currency heightens the
banking system's exposure to exchange-rate risk and could
increase the country's contingent liabilities, particularly if
combined with deteriorating asset quality," S&P said.


The stable outlook reflects S&P's expectation that Belarus will
likely make economic adjustments and receive timely financial
support from Russia if needed, over the next 12 months.

Specifically, S&P thinks the Russian government will provide
official loans to Belarus to meet part of its high external
financing requirement.

S&P could take a negative rating action if the government's
adjustment program is derailed or S&P perceives Russia less
willing to provide financial support to Belarus.  Negative rating
actions could also follow if -- in the run-up to the presidential
elections -- the government loosened its fiscal stance, leading
in turn to materially weakened public finances.

S&P could consider a positive rating action if it observed an
improvement in external balances, as indicated by lower external
financing needs, improved current account balances, and a
sustained increase in foreign currency reserves.  In this regard,
policies that result in improved economic competitiveness and
higher monetary policy flexibility could support higher ratings.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable.  At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee
by the primary analyst had been distributed in a timely manner
and was sufficient for Committee members to make an informed
decision. After the primary analyst gave opening remarks and
explained the recommendation, the Committee discussed key rating
factors and critical issues in accordance with the relevant
criteria. Qualitative and quantitative risk factors were
considered and discussed, looking at track-record and forecasts.

The committee agreed that the key rating factors were unchanged.

The chair ensured every voting member was given the opportunity
to articulate his/her opinion.  The chair or designee reviewed
the draft report to ensure consistency with the Committee
decision. The views and the decision of the rating committee are
summarized in the rationale and outlook.  The weighting of all
rating factors is described in the methodology used in this
rating action.


                                     Rating          Rating
                                     To              From
Belarus (Republic of)
Sovereign credit rating
  Foreign and Local Currency         B-/Stable/B     B-/Stable/B
Transfer & Convertibility Assessment
  T&C Assessment                     B-              B-
Senior Unsecured
  Foreign and Local Currency         B-              B-

C Z E C H   R E P U B L I C

EXCON STEEL: Bought by Steel Manufacturing for CZK96.125-Mil.
CTK reports that EXCON Steel was bought by Steel Manufacturing
Bohemia for CZK96.125 million.

According to CTK, Steel Manufacturing has already taken over the
bankrupt engineering firm.

The price of EXCON Steel's production plant in Hradec Kralove,
which employed 140 people, was put at CZK195 million, CTK
discloses.  The creditor committee did not set a minimum price,
CTK notes.

Six firms had submitted their bids, with the price being the sole
criterion, CTK relates.

"Creditors have a real chance to get at least some of their
claims," CTK quotes insolvency administrator David Janosik as

EXCON Steel is based in Prague.


TALVIVAARA MINING: Commences Voting Procedure for Rescue Plan
The District Court of Espoo on April 14 decided to initiate a
creditors' voting procedure on the draft restructuring program of
Talvivaara Mining Company Plc in accordance with section 76 of
the Restructuring of Enterprises Act.

By voting, creditors can support or oppose the Administrator's
draft restructuring program.  The approval of the draft
restructuring program requires express support from the necessary
number of creditors for the Administrator's draft restructuring
program.  The entry into force of the draft restructuring program
requires that the requisite number of creditors have voted in
support of the draft restructuring program and that the
conditions set by the draft restructuring program concerning the
Company`s business operations and other conditions set by the law
have been met.  If the requisite amount of votes supporting the
draft restructuring program is not received, the Administrators
draft restructuring program cannot be confirmed, which would
likely lead to a bankruptcy of the Company.

The voting ends on May 6, 2015 at 4:15 p.m. (Finnish time),
except for the voting period for the convertible bond holders and
the nominee-registered bond holders that will end on May 4, 2015
at 4:00 p.m. (Finnish time).

The record date for the bond holders will be April 24, 2015.

More information about the different voting methods and related
deadlines will be made available at the latest on April 17, 2015
on the Company`s website at:

                    About Talvivaara Mining

Talvivaara Mining Co. Ltd. is a Finnish nickel producer.  It
filed for a corporate reorganization on Nov. 15, 2013, to raise
funds and avoid bankruptcy.  The company suffered from falling
nickel prices and a slow ramp-up at its mine in northern Finland,
forcing it to seek fundraising help from investors and creditors.


CEGEDIM SA: S&P Raises CCR to 'BB-' on Disposal Completion
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on French health care software and services group
Cegedim S.A. to 'BB-' from 'B+'.  S&P removed the rating from
CreditWatch, where it had placed it with positive implications on
Oct. 20, 2014.  The outlook is positive.

S&P also raised its ratings on Cegedim's existing EUR425 million
senior unsecured notes due 2020 to 'BB-' from 'B+' in line with
the corporate credit rating.  The recovery rating on this
instrument remains '4', reflecting S&P's expectation of average
(30%-50%; higher half of the range) recovery in the event of a
payment default.

The upgrade primarily reflects the significant decrease in
Cegedim's leverage, following the spin-off of the group's
historical division.  Cegedim has earmarked the substantial cash
proceeds of EUR396 million for debt reduction, which will enable
the company to significantly deleverage its financial structure.
S&P expects Cegedim will report debt to EBITDA of less than 3x in
2015 (a ratio S&P computes on the average of the three upcoming
fiscal years), which is commensurate with an "intermediate"
financial risk profile, according to S&P's criteria.  However,
most other ratios, such as Standard & Poor's-adjusted funds from
operations (FFO) to debt, EBITDA to interest coverage, and free
operating cash flow (FOCF) to debt, are not yet in line with the
"intermediate" category.  S&P, therefore, views the group's
financial risk profile as "significant."  S&P understands that
part of the sizable cash balance will be used to repay the EUR63
million bond maturing in July 2015.  The 2020 bond could also be
called in 2016, depending on market conditions.  This would imply
a lower cost of debt, which would substantially improve the
group's free cash flow generation.

The rating on Cegedim reflects S&P's assessment of the company's
business risk profile as "weak," even after the recent disposals.
S&P views the group as a leading software provider for insurers
and health care professionals.  Although Cedegim's revenues will
have decreased following the disposal, S&P expects it will
continue to be relatively well diversified, with a granular
customer base, including British and French pharmacists and
practitioners, as well as nonspecifically health care corporates
for which Cegedim has successfully developed a human-resource
management offer.  Cegedim is a key player in data transfer
between private health insurers ("mutuelles"), pharmacists, and
the French national health care system.  The group could benefit
from additional volumes of activity, since the French government
is contemplating banning cash payment to the doctors, implying a
total dematerialization of the flux.

"We understand that a portion of the disposal proceeds will be
used in 2015 to reimburse a EUR63 million bond maturing in July.
The rest of the group's debt primarily comprises EUR425 million
senior unsecured notes due in 2020.  We understand the company
will also consider total or partial redemption of this bond,
depending on market conditions.  However, we believe that this
bond will unlikely be reimbursed before 2016, when the first call
options fall due July 2016.  The early redemption of the 2020
bond will substantially improve the group's cost of debt and
interest coverage ratios," S&P said.

S&P anticipates that Cegedim will show modest growth in 2015, and
will slightly improve its operating margins as it progressively
expands its customer base.  S&P also assumes that the company
will maintain a conservative financial policy, and will not make
any large debt-financed acquisitions or pay large dividends in
coming years.

The positive outlook reflects the possibility that S&P could
upgrade Cegedim by one notch within 12 months should the group
report financial risk metrics commensurate with our
"intermediate" category, as defined in S&P's criteria.

S&P would revise the outlook to stable if Cegedim implemented a
radical change in its financial policy, through a large debt-
financed acquisition, which would slow down deleveraging and push
adjusted debt to EBITDA higher than 3x.  This is not a likely
scenario, though, given the group's public statement that the
disposal proceeds are earmarked for debt reduction.  Any
operating setback could also jeopardize current ratings.  S&P
will closely monitor the group's quarterly performances, which
have been subject to profit warnings in the past and remain
contingent on the investment budgets of pharmacists and

S&P could raise the ratings if the group demonstrated robust
operating performance, which would improve FOCF generation and
push its FOCF-to-debt ratio above 15%.  S&P notes that the
group's debt-to-EBITDA ratio is already less than 3x and in line
with S&P's "intermediate" financial risk profile.  An upgrade
would also imply that the group's EBITDA interest coverage
improves and remains sustainably above 6x.  To achieve this, S&P
expects that Cegedim will use its sizable cash proceeds to
refinance in 2016 its EUR425 million senior unsecured notes due
2020.  A lower cost of debt would also boost cash flow


GREECE: Braces for Debt Default, Bailout Talks Ongoing
Kerin Hope and Tony Barber at The Financial Times report that
Greece is preparing to take the dramatic step of declaring a debt
default unless it can reach a deal with its international
creditors by the end of April.

According to the FT, people briefed on the radical leftist
government's thinking said Greece, which is rapidly running out
of funds to pay public sector salaries and state pensions, has
decided to withhold EUR2.5 billion of payments due to the
International Monetary Fund in May and June if no agreement is

"We have come to the end of the road . . .  If the Europeans
won't release bailout cash, there is no alternative [to a
default]," the FT quotes one government official as saying.

A Greek default would represent an unprecedented shock to
Europe's 16-year-old monetary union only five years after Greece
received the first of two EU-IMF bailouts that amounted to a
combined EUR245 billion, the FT notes.

Greece's finance ministry on April 13 reaffirmed the government's
commitment to striking a deal with its creditors, saying: "We are
continuing uninterruptedly the search for a mutually beneficial
solution, in accordance with our electoral mandate", the FT

In this spirit, Greece resumed technical negotiations with its
creditors in Athens and Brussels on April 13 on the fiscal
measures, budget targets and privatizations without which the
lenders say they will not release funds needed to pay imminent
debt installments, the FT discloses.

The government, the FT says, is trying to find cash to pay EUR2.4
billion in pensions and civil service salaries this month.

Greece is due to repay EUR203 million to the IMF on May 1 and
EUR770 million on May 12, the FT states.  Another EUR1.6 billion
is due in June, according to the FT.

The funding crisis has arisen partly because EUR7.2 billion in
bailout money due to have been disbursed to Greece last year has
been held back, amid disagreements between Athens and its
European and IMF creditors over politically sensitive structural
economic reforms, according to the FT.


ASHFORD CASTLE: Gets Major Overhaul After Receivership
Irish Independent reports that Ashford Castle completes its
journey from receivership to luxury restoration.

The former summer residence of the Guinness family went into
receivership in late 2011, but now has been given an overhaul
under its new owners, and will again employ hundreds of local
people on the shores of Lough Corrib in Co Mayo, the report

The castle was sold for EUR20 million in 2013, and the cost of
the renovation work was estimated to be more than double the
purchase price, according to Irish Independent.

Irish Independent notes that under the massive ramp, each of the
hotel's 82 bedrooms has been redecorated in a bespoke fashion
with plush carpets, antique furnishings and luxurious bathrooms,
Irish Independent discloses.  A 32-seat cinema is perhaps the
most modern addition to the property while a traditional billiard
room and cigar terrace have been installed, the report relays.

The vaulted entrance hall, the Connaught Room, Princes of Wales
Bar, Drawing Room and the castle's three restaurants have all
been enhanced, according to the Irish Independent.

The nine-hole golf course that sits on the 350-acre site has been
treated to improve year-round play, the report adds.

Taoiseach Enda Kenny will visit Ashford Castle, parts of which
date back to the 13th century, to officially unveil its new look,
the report notes.

HOLLAND PARK: Fitch Affirms 'B-sf' Rating on Class E Notes
Fitch Ratings has affirmed Holland Park CLO Limited as:

  EUR291.875 million class A-1 affirmed at 'AAAsf'; Outlook

  EUR58.75 million class A-2 affirmed at 'AAsf'; Outlook Stable

  EUR30 million class B affirmed at 'A+sf'; Outlook Stable

  EUR23.75 million class C affirmed at 'BBB+sf'; Outlook Stable

  EUR37.5 million class D affirmed at 'BB+sf'; Outlook Stable

  EUR17.5 million class E affirmed at 'B-sf'; Outlook Stable

  EUR54.25 million subordinated notes: not rated

Holland Park CLO Limited is a EUR500 million arbitrage cash flow
collateralized loan obligation (CLO) of European leveraged loans
and bonds.  The portfolio will be managed by Blackstone/GSO Debt
Funds Management Europe Limited (DFME), an affiliate of The
Blackstone Group LP.  The transaction features a four-year
reinvestment period.


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

The transaction became effective as of July 2014.  Between
closing in April 2014 and the report date as of February 2015,
the manager made EUR1.7 million from trading.  This marginally
increased the credit enhancement for all notes, for the class A-1
notes to 41.82% from 41.63% at closing and for the most junior
class E notes to 8.44% from 8.13%.

The majority of underlying assets (89.5% of the portfolio) are
rated in the 'B' category and 99.4% of the assets are senior
secured.  There are no 'CCC' or below rated assets and no
defaulted assets.  According to the January 2015 report, the
largest industry is healthcare with 8.92%.  The largest country
is France, contributing to 20.44% of the portfolio, followed by
the US with 17.12%.  European peripheral exposure is presented by
Spain and Italy which make up 6.36% of the performing portfolio
and cash balance.  The largest single obligor is 2.26% with a
trigger at 3% of the portfolio.  There are no fixed rate assets.


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

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

-- A 25% reduction in the expected recovery rates would lead to
    a downgrade of three to four notches for the rated notes.


TEMIRBANK: S&P Affirms Then Withdraws 'B/B' Counterparty Ratings
Standard & Poor's Ratings Services affirmed its 'B/B' long- and
short-term counterparty credit ratings and 'kzBB' national scale
rating on Kazakhstan-based Temirbank and ABC Bank JSC.  S&P
subsequently withdrew the ratings on the banks at the banks'
request.  At the time of the withdrawal, the outlook on each bank
was stable.

The affirmations reflect S&P's opinion that Temirbank's and ABC
Bank's business and financial positions remain consistent with
the rating level.

In December 2014, Temirbank and ABC Bank (formerly ForteBank)
merged with Alliance Bank.  The combined bank group was rebranded
ForteBank in February 2015.

S&P considers Temirbank and ABC Bank as core subsidiaries of
ForteBank.  According to S&P's group rating methodology, it rates
core subsidiaries at the group level.  S&P expects that Temirbank
and ABC Bank will cease to exist as legal entities in 2015.  The
three banks are currently being integrated with the aim of
creating a common IT platform, risk management systems, and

At the time of the withdrawal, the outlooks on Temirbank and ABC
Bank were stable, reflecting S&P's view that, following the
restructuring and merger, ForteBank will maintain a stable
competitive position in the Kazakhstan banking sector, supported
by its restored capitalization and profitability.

Senior unsecured and subordinated bonds issued by Temirbank have
been transferred to ForteBank.  The terms of the bonds were not


MAGNIT PJSC: S&P Raises CCR to 'BB+', Outlook Negative
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Russian retailer PJSC Magnit (previously OJSC
Magnit) to 'BB+' from 'BB'.  The outlook is negative.

The upgrade reflects S&P's expectation that Magnit will maintain
its sound operating performance, despite tough economic
conditions in Russia.  Magnit's adjusted debt-to-EBITDA ratio
improved to below 1.0x in 2014, compared with 1.1x in 2013,
primarily thanks to healthy EBITDA growth.  Also in 2014, the
company's revenues rose by 31.7% (in Russian ruble terms) and
adjusted EBITDA increased by 36%, with an EBITDA margin above

S&P notes Magnit's ongoing expansion.  The company increased net
selling space by almost 20% in 2014, and S&P thinks it will
continue to grow over the next two years to gain higher market
share and further strengthen its leading position in the food
retail industry.  Despite Magnit's continuing investments in
growth, S&P assumes that the company will be able to generate
free operating cash flow (FOCF) over the next two years.

The rating reflects S&P's assessments of Magnit's "fair" business
risk profile and "modest" financial risk profile.  Magnit is the
largest food retailer in Russia in terms of revenues and runs the
country's biggest network of discount grocery stores,
hypermarkets, and cosmetics shops.  The company's profitability
benefits from increasing economies of scale and limited
competition in rural areas.  Magnit also enjoys strengthening
bargaining power with its large suppliers, while strong control
over operating costs led to improvements in operating margins
over the past four years.  S&P now expects increasing competition
from large competitors to have a material impact only in the
longer term, because S&P thinks that Magnit will continue to
develop its franchise over the next two years, primarily in the
regions where its market positions are the strongest.  S&P also
expects the company to further strengthen its bargaining power
with smaller local suppliers as its penetration of municipalities
and local districts increases.  S&P anticipates that Magnit's
profitability will level off somewhat from currently high levels,
because high food price inflation may not be fully transferable
to customers -- real disposable incomes in Russia are declining,
and Magnit might need to invest more in prices in order to
support traffic and top-line growth.

S&P's assessment of Magnit's business risk profile also reflects
S&P's view of the company's exposure to risks in emerging
markets, such as currency volatility, persistent cost inflation,
and geopolitical uncertainty, which has increased over the past
year. The recent one-year ban on food imports to Russia has put
additional pressure on the industry.  However, Magnit has
effectively adjusted to the new operating environment without
seeing a material impact on its credit metrics or overall

Unlike many food retailers in developed markets, Magnit operates
in a fragmented, increasingly competitive, and still emerging
food retail market.  These factors are partly offset by the
intrinsic resilience and predictability of the food retail
industry, the company's strong market presence, with leading
position in cities with fewer than 500,000 inhabitants, and
robust profitability.

S&P now regards Magnit's financial risk profile as "modest,"
versus "intermediate" previously.  The company's core ratios --
debt to EBITDA and funds from operations (FFO) to debt -- now
point to our "minimal" financial risk category, reflecting lower
leverage metrics than in the recent years.  However, other
metrics based on FOCF and discretionary cash flow are not as
strong, reflecting the company's sizable investments in expansion
and high dividends.

S&P's business risk and financial risk assessments result in a
'bbb-' anchor.  S&P removes one notch from the anchor for its
comparable rating analysis.  This results in a stand-alone credit
profile (SACP) of 'bb+'.  The comparable rating analysis reflects
the company's weaker FOCF and discretionary cash flow generation
profile than comparable companies, reflecting, in part, the
relatively high investment effort and the company's undertaking
of substantial dividends.

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

   -- Net selling-space expansion of about 20%;
   -- About 25%-30% sales growth (in Russian ruble terms);
   -- Adjusted EBITDA margins at 9%-10%;
   -- Capital expenditures of about $1 billion; and
   -- Dividends of about Russian ruble (RUB) 37 billion.

Based on these assumptions, S&P arrives at these credit measures
for the next two years:

   -- Adjusted debt to EBITDA of 1.0x-1.4x;
   -- Adjusted FFO to debt of 55%-70%; and
   -- Adjusted FOCF to debt of 1%-15%.

S&P's negative outlook on Magnit reflects the negative outlook on
the Russian Federation.  S&P caps the foreign currency rating on
Magnit at the 'BB+' transfer and convertibility (T&C) assessment
for Russia, because Magnit does not have any meaningful hard
currency earnings.  At the same time, Magnit's improved SACP of
'bb+' reflects S&P's expectation that the company will continue
to demonstrate positive FOCF generation.  The improvement also
reflects that Magnit's adjusted debt-to-EBITDA ratio will stay
below 2.0x, FFO to debt will not be less than 45%, and liquidity
will be at least "adequate."

A downgrade of Magnit could occur if S&P lowers the sovereign
foreign currency rating and lower the T&C assessment on Russia.

S&P does not anticipate a weakening of the SACP over the next 12
months, given Magnit's low leverage, "adequate" liquidity, and
sound operating performance.  However, S&P could take a negative
rating action if adverse operating developments lead to notably
weaker-than-anticipated EBITDA and credit ratios, with FOCF
turning negative.

S&P could also lower the rating if Magnit's liquidity worsens to
"less than adequate," and if the company increases its adjusted
debt to EBITDA to above 2.0x because of financial policy
decisions, or in case of a significant decline in operating
performance driven by the weaker market environment in Russia.

S&P might consider revising the outlook to stable if it took a
similar action on Russia.

Over the next 18 to 24 months, the SACP might benefit from a
strengthening of the company's market position such that S&P
reassess the business risk profile as "satisfactory."  This would
happen, in S&P's view, if the Russian retail market consolidated,
giving S&P more visibility on the largest food retailers'
competitive advantages against peers in the same regions.
Additionally, rating upside would hinge on the company's debt
maturity profile being predominantly long term, financial policy
continuing to be prudent, and discretionary cash flow becoming
sustainably positive.

S L O V A K   R E P U B L I C

SLOVAKIA STEEL: Czech Export Bank Sues J&T Over Loan Guarantee
According to CTK,, citing business daily Hospodarske
noviny, the Czech Export Bank filed a lawsuit against J&T,
demanding that the group pay to it a portion of EUR25 million,
J&T's guarantee for the loan to finance the construction of
Slovakia Steel Mills.  CEB CEO Karel Bures confirmed the filing
of the lawsuit, according to the report.

J&T noted on its Web site that CEB breached a contract which is
why it will not pay the money, CTK relays.  The amount is about
EUR8 million (CZK220 million), says CTK, citing HN.

CEB lent EUR160 million in total to the bankrupt Slovakia Steel
Mills, and J&T provided a full guarantee for one of the payments
worth EUR25 million, the group claims, CTK discloses.


CANTABRIA I: Fitch Lowers Rating on Class D Notes to 'CCC'
Fitch Ratings has downgraded AyT CGH Caja Cantabria I's class C
and D notes and affirmed the others, as:

  Class A notes (ISIN ES0312273446): affirmed at 'A+sf'; Outlook

  Class B notes (ISIN ES0312273453): affirmed at 'BBB+sf';
  Outlook Stable

  Class C notes (ISIN ES0312273461): downgraded to 'Bsf' from
  'BBsf'; Outlook Negative

  Class D notes (ISIN ES0312273479): downgraded to 'CCCsf' from
  'Bsf'; Recovery Estimate 85%

The transaction is part of a series of RMBS transactions that are
serviced by Liberbank, S.A. (BB+/Negative/B).


Stable Credit Enhancement

The notes are currently paying sequentially.  As delinquencies
are above the trigger level and the reserve fund is below target,
we do not expect a switch to pro-rata in the near future.  As of
September 2014, credit enhancement available to the senior class
had marginally increased to 19.75% from 19% 12 months ago.

Stable Asset Performance

Arrears levels remain stable but above the Spanish average for
the past year.  As of September 2014, three-months plus arrears
(excluding defaults) as a percentage of the current pool balance
were 2.3%, compared with Fitch's index of three-months plus
arrears (excluding defaults) of 1.7%.

Cumulative defaults, defined as mortgages in arrears by more than
18 months, stood at 2.2% and remain below the sector average of
4.9%.  Fitch believes that defaults will continue to rise as 83%
of three-months plus arrears loans are already more than six
months overdue.

Given the level of arrears, the increasing proportion of defaults
and continued reserve fund draws, Fitch believes the most
subordinated tranches do not have enough protection to support
the current ratings, leading to a downgrade of the class C and D

Reserve Fund Draws

The reserve fund is at 68% of its target after continued draws
and partial replenishment since September 2010.  Given the likely
increase in defaults, Fitch believes further draws will take
place on the next payment dates.

Payment Interruption Risk

The transaction benefits from a dynamic cash reserve sized to
cover for two payment dates of interest on the class A notes and
senior fees.  Combined with the current level of the utilized
reserve fund balance, the liquidity in the structure is deemed
sufficient to cover payment interruption risk.  However, Fitch
notes that if further draws continue to take place this liquidity
may be insufficient, which could lead to negative rating actions.

Rating Sensitivities

A worsening of the Spanish macroeconomic environment, especially
employment conditions, or an abrupt shift in interest rates might
jeopardize the ability of the underlying borrowers to meet their
payment obligations.

More volatile arrears patterns and a rapid increase in defaults
beyond Fitch expectations could trigger negative rating action.

PETERSEN ENERGIA: Sues YPF Over Losses Related to Nationalization
Y. Peter Kang at Law360 reports that Petersen Energia Inversora
SAU and Petersen Energia SAU, two Spain-based companies currently
in bankruptcy proceedings, lobbed a suit at Argentina and state-
owned YPF SA in New York federal court on April 8 in connection
with losses they suffered due to their 25% stake in YPF when it
was nationalized in 2012.

According to Law360, Petersen Energia Inversora SAU and Petersen
Energia SAU said the South American country violated YPF
shareholder agreements when it nationalized the company and filed
the suit as a successor action to a 2012 proposed class action
that ended in a US$5 billion settlement Argentina reached with
Spanish oil giant Repsol SA in February 2014.

The Petersen entities said they bought shares of YPF, which was
originally a state-run monopoly that was taken private via an
initial public offering in 1993, based on assurances from
Argentina that should the country wish to take back control of
the company it would make a tender offer to shareholders, Law360
relates.   That never happened, Petersen says in the complaint,
accusing the Argentine government of undertaking a campaign to
depress YPF's stock by leaking news of an impending
nationalization, Law360 relays.

Petersen alleges a number of claims, including breach of contract
and breach of implied duty of good faith, and seeks unspecified
compensatory damages, Law360 notes.

The April 8 suit also names YPF as a defendant, Law360 discloses.
YPF, or Yacimientos Petroliferos Fiscales, was a state-run
monopoly until the early 1990s, when Argentina began privatizing
the company, Law360 states.


PA RESOURCES: Gunvor Intends to Withdraw Bankruptcy Petition
Gunvor Group disclosed that it intends to withdraw its petition
for bankruptcy in PA Resources AB.

PA Resources AB (publ) -- is an
international oil and gas group which conducts exploration,
development and production of oil and gas assets.  The Group
operates in Tunisia, Republic of Congo (Brazzaville), Equatorial
Guinea, United Kingdom, Denmark, Netherlands and Germany.  PA
Resources is producing oil in West Africa and North Africa. The
parent company is located in Stockholm, Sweden.  PA Resources'
net sales amounted to SEK 603 million in 2014.  The share is
listed on the NASDAQ OMX in Stockholm, Sweden.


MATTERHORN TELECOM: Moody's Assigns 'B2' CFR; Outlook Stable
Moody's Investors Service assigned a B2 corporate family rating
and a B2-PD probability of default rating to Matterhorn Telecom
Holding S.A., the ultimate parent of Orange Communications S.A.
(Orange Switzerland or OCH). MTH will become the new top company
within the restricted group issuing consolidated financial
statements. Concurrently, Moody's has withdrawn the B2 CFR and
B1-PD PDR of Matterhorn Midco & Cy S.C.A, which was the previous
top company. The outlook on all ratings is stable.

The ratings on the existing debt instruments issued by Matterhorn
Midco, Matterhorn Mobile Holdings S.A. and Matterhorn Mobile S.A.
remain unchanged at this stage. These debt instruments will
shortly be redeemed with proceeds from the new debt issuance, and
their ratings will be withdrawn upon repayment.

Concurrently, Moody's has assigned a provisional (P)B2 rating to
Matterhorn Telecom S.A.'s (MT) CHF1,712 million equivalent worth
of fixed and floating senior secured notes due 2022 and a
provisional (P)Caa1 rating to MTH's EUR290 million (CHF302
million equivalent) senior notes due 2023. Proceeds from the new
notes offering will be used to redeem in full the existing bonds,
pay a CHF150 million dividend to shareholders and pay fees and

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings reflect the rating agency's
preliminary credit opinion regarding the transaction only. Upon a
conclusive review of the final documentation, Moody's will
endeavor to assign a definitive rating to the proposed debt
instruments. The definitive ratings may differ from the
provisional rating.

B2 CFR assigned to MTH:

The assignment of a B2 CFR to MTH reflects the fact that despite
the increase in leverage following this refinancing exercise,
from Moody's adjusted debt/EBITDA of 3.7x as of year-end 2014 to
4.8x pro forma for this deal, Moody's expects that the company's
credit metrics will improve over the next 12 to 18 months driven
by higher cash flow generation, and will be maintained well
within the guidance range for the B2 category.

Moody's notes the positive considerations from this refinancing
exercise, including the extension of the debt maturity profile
and the lower the cost of debt, which will free up some cash
flows for other uses. In addition, there will be limited foreign
currency volatility risk, as the company will fully hedge
interests and principal of the euro-denominated debt.

However, the company's financial strategy is slightly more
aggressive than anticipated, as OCH has increased restricted
group leverage, not only to refinance the existing payment-in-
kind (PIK) toggle notes, but to pay for transaction fees and a
CHF150 million dividend to the new owner, NJJ Capital.

Moody's has also reflected in its decision the company's recent
performance, with 2014 revenue growth of 2% and EBITDA growth of
11%. However, headline numbers were boosted by the launch of
installment/personal pricing plans from September 2014 and a
change in accounting to reflect upfront recognition of hardware
revenues. These changes have provided a one-time boost in
performance in 2014, and have temporarily inflated revenues and
EBITDA at the expense of higher working capital requirements.
Nevertheless, Moody's expects that EBITDA will stabilize in 2016
and 2017 as penetration of these installment plans tapers off. In
2015, Moody's expects that the cost of the announced re-branding
exercise will broadly offset the positive impact from installment

NJJ Capital, Xavier Niel's private holding company, plans to
further improve OCH's cash flow generation by optimizing opex and
capex. Mr. Niel has a strong track record of achieving opex and
capex efficiencies with Illiad in France. However, Moody's
believes it might be more challenging to achieve those in OCH
owing to (1) the substantial cost-cutting efforts already made at
OCH under Apax ownership; (2) the limited room for synergies
between OCH and other telecom operators owned by Mr. Niel
(principally procurement) because of the lack of overlapping
assets or common management structure; and (3) the ongoing gap in
capex/sales between the incumbent Swisscom (23%), and OCH (around

Moody's also notes the evolving competitive environment in the
Swiss market, which has recently seen the change in shareholder
at OCH, the IPO of Sunrise Communications Group AG, and the
launch of an MVNO offering by Cablecom. Moody's believes that OCH
is unlikely to be very aggressive on pricing in the Swiss market,
given its high leverage and its valuable subscriber base, that
would be exposed to repricing risk in the event of a price war.

(P)B2 - (P)Caa1 ratings assigned to new debt instruments:

The (P)B2 rating assigned to the senior secured notes reflects
their ranking behind the CHF150 million super senior revolving
credit facility, but ahead of the senior notes. Since the senior
secured notes are the largest piece of debt in the capital
structure, their rating is in line with the company's B2 CFR. The
(P)Caa1 rating on the senior notes is a result of OCH's high
leverage and their contractually and structurally subordinated
position relative to the company's senior secured obligations.

The stable outlook on the B2 rating reflects that while OCH's
metrics will initially be weak for the rating, they are expected
to improve over the next 12-18 months to levels well within the
B2 category. It also reflects Moody's expectation that the
company will broadly achieve its objectives in terms of
operational metrics, while it will operate under its self-imposed
maximum leverage of net reported debt/EBITDA of 4.5x.

Upward pressure on the B2 rating could develop if the company's
financial profile improves, such that its (1) adjusted
debt/EBITDA ratio decreases to below 4.0x on a sustained basis;
and (2) retained cash flow (RCF)/adjusted debt ratio increases
well above 15%. Upward pressure on the rating would require a
track record of deleveraging, with indications of a more
conservative financial strategy to be implemented by the

Downward pressure could be exerted on the rating if the company's
operating performance weakens such that its adjusted debt/EBITDA
rises above 5.0x and its RCF/adjusted debt falls below 10% on a
sustained basis. In addition, downward pressure could be exerted
on the rating if Moody's becomes concerned about the group's
liquidity -- including, but not limited to, a reduction in
covenant headroom.

List of Affected Ratings:


Issuer: Matterhorn Telecom Holding SA

  -- Probability of Default Rating, Assigned B2-PD

  -- Corporate Family Rating, Assigned B2

  -- Senior Unsecured Regular Bond/Debenture, Assigned (P)Caa1,
     LGD6, 93%

Issuer: Matterhorn Telecom SA

  -- Senior Secured Regular Bond/DebentureAssigned (P)B2, LGD3,

Outlook Actions:

Issuer: Matterhorn Telecom Holding SA

  -- Outlook, Assigned Stable

Issuer: Matterhorn Telecom SA

  -- Outlook, Assigned Stable


Issuer: Matterhorn Midco & Cy S.C.A.

  -- Probability of Default Rating, Withdrawn , previously rated

  -- Corporate Family Rating (Local Currency), Withdrawn,
     previously rated B2

The principal methodology used in these ratings was Global
Telecommunications Industry published in December 2010. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Matterhorn Telecom Holding S.A. (MTH) is a special purpose
vehicle that indirectly owns 100% of Orange Communications S.A.
(OCH). OCH is the number three mobile network operator in
Switzerland, with a subscriber market share of around 18%. The
company has approximately 2.2 million mobile customers. For the
year ended December 2014, the company reported revenues of
CHF1.32 billion and adjusted EBITDA of CHF434 million.

MATTERHORN TELECOM: S&P Assigns Prelim. 'B' CCR; Outlook Stable
Standard & Poor's Ratings Services assigned its preliminary 'B'
long-term corporate rating to Swiss wireless telecommunications
network operator Matterhorn Telecom Holding S.A. and subsidiary
Matterhorn Telecom S.A.  The outlook is stable.

At the same time, S&P assigned its preliminary 'B' issue ratings
to Matterhorn's proposed senior secured debt, with a preliminary
recovery rating of '3', reflecting S&P's expectation of
meaningful recovery (50%-70%; higher half of the range) in the
event of a default.

S&P has also assigned a preliminary 'CCC+' issue rating to the
proposed senior notes, with a preliminary recovery rating of '6',
reflecting S&P's expectation of negligible recovery (0%-10%)
after a default.

The preliminary ratings are subject to the successful issue of
the proposed facilities, S&P's satisfactory review of the final
documentation, the completion of the transfer of Orange
Communications to Matterhorn Telecom Holding S.A. from Matterhorn
Mobile, and the repayment of existing debt.

Matterhorn is a newly created subsidiary of Matterhorn Mobile
S.A. and will become the ultimate parent of Orange Communications
S.A., the third-largest wireless network operator in Switzerland.
This follows the recent acquisition of Matterhorn Financing by
NJJ Capital, a private holding company owned by French
entrepreneur Xavier Niel.

The preliminary ratings reflect Matterhorn's No. 3 position in a
market dominated by the incumbent telecom operator Swisscom AG.
S&P acknowledges the group's improved operating performance,
increasing post-paid customer base, and strengthening margins,
which resulted from restructuring and its transformation plans.
Matterhorn has also been able to capitalize on a well-invested
and recently revamped network, which covered 90% of the
population with fourth-generation technology at year-end 2014.

However, S&P views Matterhorn's business risk profile as weaker
than that of its two main competitors, Swisscom and Sunrise
Communication Holdings S.A.  This is because of Matterhorn's
small scale and low diversity, owing to its narrow business and
geographic focus.  The lack of a fixed network, intense
competition on data-intensive offers, and substitution issues
across the industry represent challenges, in S&P's view.

These weaknesses are somewhat balanced by the company's
established position in the wireless market, its network quality,
and decreasing customer turnover rate.  Matterhorn also benefits
from Switzerland's wealthy and stable economy; S&P don't
anticipate significant changes in the competitive environment,
given high barriers to entry and more favorable regulation than
in other European markets.  The group has recently announced a
broad rebranding campaign, which will require about CHF40 million
in related expenses in 2015.

In S&P's base case for Matterhorn, it forecasts the Standard &
Poor's-adjusted debt-to-EBITDA ratio at close to 5.1x by the end
of 2015.  The ratio could improve if, as S&P anticipates, EBITDA
strengthens on the back of continued cost reductions and lower
nonrecurring, restructuring and rebranding expenses.  In turn,
this should lead to stronger free operating cash flow (FOCF),
supported by lower interest costs after the refinancing and a
steady decrease in negative working capital changes and capital
expenditures.  As a consequence, S&P projects that FOCF to debt
should gradually increase from our estimate of about 5.5% by the
end of 2015.  S&P's adjusted debt figure includes about CHF35
million in spectrum investments in 2016, as well as operating
leases, and asset retirement and pension obligations.

S&P considers the parent company, NJJ Capital, to be a financial
sponsor, although its interest in Matterhorn might continue for
longer than is typical for a private-equity investment.  S&P's
assessment of Matterhorn's financial policy reflects S&P's lack
of information on private holding company NJJ Capital, the
planned CHF150 million recapitalization, and S&P's view that a
discretionary dividend policy may be likely in the future.

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

   -- Close to 5% revenue growth in 2015, mainly due to the
      gradual implementation of installment accounting;

   -- A slight improvement of the adjusted EBITDA margin to 32.6%
      in 2015, and to about 36% from 2016 thanks to globally
      stable revenues and lower restructuring expenses (no higher
      than CHF8 million per year);

   -- Fewer negative working capital changes, following
      exceptional events that affected 2014 figures; and

   -- Capital expenditure remaining close to CHF160 million in
      2015 before declining to CHF145 million in 2016 and CHF133
      million in 2017.

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

   -- A Standard & Poor's-adjusted debt-to-EBITDA ratio close to
      5.1x in 2015, trending down toward 4.5x in 2016-2017 as
      EBITDA increases.

   -- Positive FOCF, owing to EBITDA growth, lower interest costs
      after the refinancing, and gradually decreasing negative
      working capital changes and capital expenditures.

   -- FOCF to debt of about 5.5% in 2015, and strengthening to
      about 9% in 2016-2017.

The stable outlook reflects S&P's view that Matterhorn will
sustain its market positions and benefit from its continued
operating efficiency improvements, commercial momentum with new
offers launched in September 2014, and recently announced
rebranding.  S&P anticipates that the Standard & Poor's-adjusted
debt-to-EBITDA ratio will be no higher than 5.1x after the
recapitalization and likely start declining thereafter, mainly
due to EBITDA growth.

Upside scenario

S&P could consider a positive rating action if Matterhorn's
adjusted debt-to-EBITDA ratio were to sustainably decline to less
than 5.0x, but this would be subject to S&P's receipt of more
information on private holding NJJ Capital.

Downside scenario

Rating downside appears unlikely at present.  S&P could consider
a negative rating action if Matterhorn failed to sustain its
competitive position against larger and more integrated
competitors or the rebranding hampered the group's operating
performance.  S&P could also lower the rating, depending on its
owner's policy, in the event of a large debt-funded shareholder
remuneration or weakening of Matterhorn's liquidity profile.


STATE EXPORT-IMPORT: Fails to Secure Bond Maturity Extension
Natasha Doff, Marton Eder and Lyubov Pronina at Bloomberg News
report that The State Export-Import Bank of Ukraine failed to
secure a three-month maturity extension on US$750 million of
bonds due this month, raising the prospect of a default that
threatens to cloud the country's restructuring talks.

According to Bloomberg, a statement on the lender's Web site said
the bank didn't get enough creditors to attend a meeting on April
13 to vote on pushing back the redemption of debt due April 27.

"The parties are sending clear signals that they are not going to
yield" in the restructuring, Per Hammarlund, the chief emerging-
markets strategist at SEB AB in Stockholm, as cited by Bloomberg,
said by e-mail.  "Private investors may think they have the
Ukrainian government in a vice, but they could face a disorderly
default instead."

Ukreximbank's struggle to shore up support for the extension
underscores the hurdles facing Ukraine as it seeks to reach
agreement with creditors including Franklin Templeton and Russia
on sovereign debt before the next review of an International
Monetary Fund bailout in June, Bloomberg notes.

The Ukrainian lender will hold a second meeting on April 27, the
day the bonds are due, with quorum requiring investors
representing one third of the bonds, down from two thirds at the
first vote, Bloomberg discloses.

Bondholders Bence Sardi, a Dubai-based broker at Mint Partners,
and Lutz Roehmeyer of Landesbank Berlin Investment GmbH are
favoring a no vote because they expect it will force Ukreximbank
to meet its obligations, Bloomberg says.

According to Bloomberg, Vadim Khramov, an emerging-markets
economist at Bank of America Merrill Lynch in London, disagreed,
saying Ukraine's ability to repay is constrained since it cannot
use reserves to pay of external debt.

International reserves slid by almost two-thirds to a record-low
US$5.63 billion in February before getting a boost last month
from a $5 billion injection from the International Monetary Fund,
Bloomberg recounts.  The country has said a failure to reach new
terms on the 29 bonds and enterprise loans it is restructuring
would jeopardize the second part of the IMF's US$17.5 billion aid
package, Bloomberg notes.

"Most likely there will be a default in two weeks if they do not
get an extension," Bloomberg quotes Mr. Khramov as saying by e-
mail on April 13.  "They do not have the money and the government
said it will not give them money from reserves."

The State Export-Import Bank of Ukraine is Ukraine's third-
biggest bank.

U N I T E D   K I N G D O M

AA BOND: S&P Assigns 'BB-' Rating to GBP735MM Class B2 Notes
Standard & Poor's Ratings Services assigned its 'BB- (sf)' credit
rating to AA Bond Co. Ltd.'s GBP735 million fixed-rate secured
class B2 notes.

The transaction is a corporate securitization of the operating
business of the Automobile Association group (the AA group).  The
AA group operates a roadside assistance service in the U.K. and
Ireland, and also provides complementary services such as
insurance, driving services, and home emergency response.
Breakdown services are provided either through a membership model
or as part of a business service agreement, whereby the services
are provided to the underlying customer base of the AA group's
corporate clients.  Business customers typically include fleet
operators and motor manufacturers.  The AA group is also a U.K.
personal lines insurance broker, particularly for motor and home

AA Bond Co.'s issuance of its class B2 notes forms part of a two-
stage redemption of its existing class B notes.  This occurs as:

   -- Firstly, on the class B2 notes' issue date, the issuer
      retained the notes' gross proceeds in an escrow account.
      In addition, as a condition for the issuance of the notes,
      the borrower, AA Senior Co. Ltd. (AA) deposited in the
      escrow account additional cash so that the class B2 notes'
      principal and interest are fully cash collateralized.  At
      this point, the class B2 notes have exclusive security over
      the escrow account only.

   -- Secondly, on or around the class B2 notes' closing date --
      July 31, 2015 -- the escrow cash is released to the issuer
      to advance a new B2 secured issuer-borrower loan to the AA.
      The AA, in turn, applies the proceeds from the loan to
      fully repay the existing class B loan plus applicable
      premium, with the issuer correspondingly redeeming the
      class B notes.

   -- From this point, the class B2 notes' security package
      changes from the escrow cash to the operating assets of the
      AA, granted under the issuer deed of charge.  In addition,
      the class B2 notes have indirect benefit over all the
      shares in AA Intermediate Co Ltd. (the topmost entity in
      the securitization group) held by AA Midco Ltd. (outside
      the corporate securitization).  If the conditions for
      releasing the escrow cash for the above are not met, the
      cash is applied instead to fully redeem the class B2 notes
      together with accrued interest, and the existing class B
      notes remain outstanding.

From the closing date, the class B2 notes rank pari passu with
any further class B notes issued and are subordinated to class
A-level debt (including the class A1, A2, A3, and A4 notes and
senior bank facilities).

The class B2 notes' source of payment is interest and principal
received under the B2 loan, which has a bullet structure and is
due in 2022.  If not repaid at maturity, the loan continues to
accrue interest with both interest and principal due, but is only
payable if the class A notes' restricted payment conditions
permit.  An example of this would be the blocking of payments to
the B2 loan if the A1 level-debt fails to refinance in 2018.

The class B2 notes are structured as a bullet note due in 2043
but with interest and principal due and payable to the extent
received under the B2 loan.  Therefore, if the B2 loan is repaid
upon maturity, the class B2 notes are also redeemed in 2022.

S&P's analysis focuses on scenarios in which the loans underlying
the transaction are not refinanced at their maturities.  S&P
therefore considers the class B2 notes as accruing interest after
the earliest failure to refinance the class A-level debt and
receiving no further payments until all of the class A-level debt
is fully repaid (in accordance with the restricted payment

The class B2 notes do not benefit from a liquidity facility.
However, S&P considers that the notes' deferrable nature
represents an acceptable mitigant to the risk of non-payment
prior to note maturity.

The class B2 notes have a number of features that improve credit
quality compared with the notes they are refinancing:

   -- Issuer requirement to pay the class B2 notes' interest and
      principal only to the extent received under the B2 loan.
      This removes potential note events of default on redemption
      of the senior debt, providing a longer tail period to fully
      repay accrued interest and principal.  The borrower general
      covenants, which are related to the control of assets and
      liabilities, can survive the redemption of the class A-
      level debt.  This extends the covenants that are in place
      while the class A-level debt is outstanding to the
      transaction's full life.  Improved pricing, which reduces
      the amount of interest up to expected maturity.

However, the class B2 notes have these key weakness compared with
the class A notes and other corporate securitizations that S&P
rates through the borrower's insolvency:

   -- The obligor documentation permits further debt without
      necessarily preserving, in S&P's view, the class B2 notes'
      access to cash flows.  This reduces the extent to which S&P
      can rely on long-dated cash flows for the purpose of
      assessing the credit quality of the class B2 notes as per
      S&P's corporate securitization methodology.

S&P's assessment of the business risk profile of the borrower and
its operating subsidiaries is 'Satisfactory'.  This reflects the
borrowing group's leading position in the U.K. roadside
assistance market, strong brand recognition, high member
retention rates, resilience to macroeconomic cycles, and above-
average profitability.  The borrowing group's limited geographic
diversification offsets these factors to an extent.

"Our corporate securitization methodology typically considers
only cash flows generated by the secured assets commensurate with
the business risk profile, and consequently does not assume
external funds to be available to make repayments.  Our cash flow
analysis therefore relies on the documented deferral, cash trap,
and sweep mechanisms for repayment.  As such, the entire cash
flow generated by the securitization is used to repay the loans
and notes in the capital structure, rather than for purposes
benefitting the equity holders.  However, to the extent that cash
can be diverted for other uses or access to the cash flow can
change, we take this into consideration when determining the
amount of cash available for debt service," S&P said.

According to S&P's analysis, the documented tests in place
regarding the incurrence of further debt are not sufficiently
prescriptive to forecast the impact of the evolving capital
structure on the cash flows available to the class B2 notes.  S&P
is therefore able to place significantly less reliance on long-
term cash flow analysis for the class B2 notes.  As a result,
S&P's rating on the class B2 notes is limited by the borrowing
group's creditworthiness.  S&P has therefore assigned its 'BB-
(sf)' rating to the class B2 notes.

At the same time as refinancing the existing class B notes, S&P
understands that part of the existing bank debt will be prepaid
from general corporate cash no later than July 31, 2015.  The
terms of the partial bank repayment are such that--while S&P
recognizes the commitment of the AA to make the payment--S&P has
also considered scenarios in which the payment is not made. S&P
understands that failure to make the payment would be equivalent
to a loan event of default and result in the early instigation of
debt repayment via a cash sweep.  In light of this, whether the
bank debt is repaid as intended or not, is not material to S&P's
analysis.  S&P therefore only take into account the reduced debt
in its base-case scenario when the partial prepayment of the
existing bank debt is completed.

The transaction blends a corporate securitization of the
operating business of the AA group with a subordinated high-yield

CASH FINANCE: In Liquidation, Cuts 117 Jobs
Manchester Evening News reports that loans call center Cash
Finance Direct, trading as Horizon Finance, has been placed in

The firm, which sold loans over the phone on behalf of lenders,
ceased trading on March 27 with the loss of 117 jobs, according
to Manchester Evening News.

The report notes that data providers stopped supplying the
company in the mistaken belief that the firm was not authorized
by the Financial Conduct Authority (FCA).

This followed an incorrect notice placed on the FCA website late
last year, which stated that the company was not authorized, due
to confusion with a similarly named firm, the report relates.

It led to cash flow and operating difficulties as data providers
stopped sending business to the company, the report discloses.

Francesca Tackie and Gary Lee, partners at the Manchester office
of Begbies Traynor, have been appointed as joint liquidators to
the Stockport-based company, the report relays.

"Cash Finance Direct was severely affected by the erroneous
notice placed on the FCA website as nervous data providers
stopped sending work through, fearing they were dealing with an
unauthorized company," the report quoted Francesca Tackie as

"While the FCA later issued a public apology on its website, the
company never fully recovered and was unable to trade out of its
difficulties," Ms. Tackie said, the report relays.

"We are aware that there are a number of customers who were due
refunds from the company in respect of call charges and we would
urge them to get in touch with us," Ms. Tackie added.

EURASIAN RESOURCES: S&P Puts 'B-' CCR on Credit Watch Negative
Standard & Poor's Ratings Services placed the ratings on the
following iron ore producers on CreditWatch with negative

   -- Anglo American PLC
   -- BHP Billiton Ltd.
   -- CAP S.A.
   -- Eurasian Resources Group (ERG) S.a.r.l.
   -- Exxaro Resources Ltd.
   -- Fortescue Metals Group Ltd.
   -- Rio Tinto PLC
   -- Vale S.A.

The CreditWatch placements follow S&P's decision to lower its
price assumptions for iron ore to US$45 per ton (US$/te) for the
rest of 2015, and to US$50/te for 2016 and US$55/te for 2017, on
April 13, 2015.  This compares unfavorably with S&P's previous
price assumptions of US$65/te in 2015, US$65/te in 2016, and
US$70/te in 2017).

The revision of S&P's price assumptions and the sharp fall of
iron ore spot prices reflect the severe supply and demand
imbalance in the market, which S&P believes could persist for the
next two years due to these factors:

   -- The continued and sizable expansion of seaborne iron ore
      supply by major players;

   -- The slower pace than expected of displacement of high-cost
      producers; and

   -- Softer demand growth from China.

In addition, the severity of the price decline has been sharpened

   -- Falling production costs because of declining prices of
      energy inputs, such as diesel; and

   -- Weaker currencies in major iron-ore producing countries,
      such as Australia (down by over 20% over the past 12 months
      versus the U.S. dollar), Brazil (down by about 35%), and
      Russia (down by more than 40%).

At the same time, the combination of lower energy costs and
weaker currencies is sustaining marginal producers, thus
prolonging the supply glut and weakness in iron ore prices.

In S&P's view, lower iron ore prices may not only weaken
producers' operating cash flows and financial leverage, but may
also affect the long-term resilience of some companies' business
risk profiles, given the higher-than-anticipated earnings
volatility due to iron-ore-price swings.


The CreditWatch placements signal the likelihood of a number of
negative rating actions after S&P completes its sector review.
S&P expects downside typically of up to one notch, but it don't
exclude the possibility of rating affirmations or, exceptionally,
a two-notch downgrade.

The rating actions will depend on company-specific factors,
including each issuer's cost position, exposure to iron ore, and
its ability to take counteractive measures in terms of reducing
capital spending, generating positive free cash flow and
preserving liquidity in the current prolonged downturn.

S&P expects to resolve the CreditWatch placements within the next
two to three weeks.  During that period, S&P will assess in more
detail the companies' plans to address the adverse impact on cash
flows from falling iron ore prices.


CreditWatch Action
                            To                     From
Anglo American PLC
Corporate Credit Rating    BBB/Watch Neg/A-2      BBB/Neg./A-2

BHP Billiton Ltd.
Corporate Credit Rating    A+/Watch Neg/A-1*      A+/Stable/A-1

Corporate Credit Rating    BB+/Watch Neg/--       BB+/Neg./--

Eurasian Resources Group (ERG) S.a.r.l.
Corporate Credit Rating    B-/Watch Neg/B         B-/Neg./B

Exxaro Resources Ltd.
National Scale Rating      zaA-/Watch Neg/zaA-2*  zaA-/zaA-2

Fortescue Metals Group Ltd.
Corporate Credit Rati      BB+/Watch Neg/--       BB+/Stable/--

Rio Tinto PLC
Corporate Credit Rating    A-/Watch Neg/A-2*      A-/Stable/A-2

Vale S.A.
Corporate Credit Rating    BBB+/Watch Neg/--      BBB+/Stable/--

* The short-term ratings on BHP Billiton, Rio Tinto, and
   Exxaro Resources Ltd. have been affirmed.

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

GLASTONBURY 2007-1: Fitch Lowers Ratings on 5 Note Classes to D
Fitch Ratings has downgraded Glastonbury 2007-1 Plc notes, as:

  Class B (XS0292543112): downgraded to 'Dsf from 'BBsf';

  Class C (XS0292543468): downgraded to 'Dsf' from 'Bsf';

  Class D (XS0292543542): downgraded to 'Dsf' from 'Csf';

  Class E (XS0292543898): d downgraded to 'Dsf from 'Csf';

  Class F (XS0292543971): downgraded to 'Dsf' from 'Csf';

Glastonbury Finance 2007-1 P.L.C. was a managed cash arbitrage
securitization of predominantly CMBS assets.  The issuer was
incorporated as a special-purpose vehicle to issue approximately
GBP354m of floating-rate and subordinated notes.  The collateral
was actively managed by Palatium Investment Management.


The downgrades and withdrawals reflect the partial payments and
cancellation of all classes of notes on March 30, as a result of
an agreement between noteholders and other transaction party
participants.  The agreement's proposal to accelerate the
repayment of the outstanding classes was passed after receiving
at least 75% or more votes from noteholders of each of the
outstanding classes.  As part of the agreement, voting
noteholders agreed to a modified pro rata distribution of
proceeds.  Following the underlying portfolio's resolution, which
produced proceeds sufficient to meet minimum agreed threshold
amounts, these proceeds were distributed accordingly.  As per the
agreement, recoveries did not flow sequentially down the
structure, and instead all classes of notes, while receiving
principal, suffered a partial loss before being subsequently

The class B and C noteholders agreed to a repayment of less than
par.  At the last review Fitch upgraded these notes based on
improved asset performance and deleveraging.  In Fitch's view the
notes had a reasonable chance of receiving par at maturity.
However based on the long dated maturity profile of some of the
remaining assets in the portfolio, these notes may not have been
repaid for some time.

As a result of the modified pro rata payments, Fitch has revised
to 'Dsf' and withdrawn all outstanding note ratings.

GRETONE ENGINEERING: Buyer Sought for Firm
Insider Media Limited reports that a buyer is being sought for
Gretone Engineering after the business was placed into

The Lancashire aerospace engineering company makes and tests
precision engineered components for renowned international
aerospace specialists and has been operating for more than 40
years from its Lytham St. Annes base, according to Insider Media

The company was established in April 2010 after a pre-pack
management buyout and last changed hands in 2013, the report
relates.  Its current owner is Kilgour Aerospace Group, according
to Companies House records, the report relays.

Director Raymond Kilgour and its senior management are now
working with David Acland and Lila Thomas at Begbies Traynor in
order to explore the possibilities of a sale of the business as a
going concern, the report discloses.

The report relays that David Acland, regional managing partner
for Begbies Traynor in Preston, said: "As we continue to look for
a suitable purchaser, it is intended that Gretone Engineering
will continue to trade in the short term, with current customer
orders being fulfilled as far as possible.

"The fact that the business has manufacturing approvals from many
of the big players in the aerospace industry and a workforce with
international recognition for producing quality aircraft parts
and components will hopefully assist in our attempts to rescue
the business," Mr. Acland, the report adds.

INTERNATIONAL GAME: Moody's Affirms 'Ba2' CFR; Outlook Stable
Moody's Investors Service took several rating actions related to
the closing of the acquisition of International Game Technology
(IGT) by GTECH S.p.A. (GTECH). These rating actions are
consistent with the rating actions that Moody's stated would
occur once the merger closed (Feb. 6, 2015 Issuer Comment).

On April 7, 2015, GTECH merged with and into International Game
Technology PLC (IGTPLC), formerly known as Georgia Worldwide PLC.
Upon closing, GTECH ceased to exist while IGT survives as a
wholly owned subsidiary of IGTPLC. Moody's assigned ratings to
IGTPLC on Jan. 30, 2015.

The rating actions detailed below conclude the review process
that was initiated on July 17, 2014 for both IGT and GTECH, when
Moody's placed the ratings of both companies on review for
downgrade in response to the announcement that they signed a
definitive merger agreement.

IGTPLC ratings affirmed:

  -- Corporate Family Rating, at Ba2

  -- Probability of Default Rating, at Ba2-PD

  -- Stable rating outlook

  -- $600 million 5.625% senior secured notes due 2020, at Ba2
     (LGD 3)

  -- $1.5 billion 6.25% senior secured notes due 2022, at Ba2
     (LGD 3)

  -- $1.1 billion 6.5% senior secured notes due 2025, at Ba2
     (LGD 3)

  -- EUR700 million 4.125% senior secured notes due 2020, at Ba2
     (LGD 3)

  -- EUR850 million 4.75% senior secured notes due 2023, at Ba2
     (LGD 3)

IGTPLC rating assigned:

  -- Speculative Grade Liquidity rating, at SGL-2

IGT ratings downgraded:

  -- $500 million 5.35% Notes due 2023, to Ba2 (LGD 3) from Baa2

  -- $300 million 5.5% Notes due 2020, to Ba2 (LGD 3) from Baa2

  -- $500 million 7.5% Notes due 2019, to Ba2 (LGD 3) from Baa2

  -- No Outlook rating

GTECH ratings downgraded:

  -- EUR500 million 5.37% Notes due 2018, to Ba2 (LGD 3) from

  -- EUR500 million 3.5% Notes due 2020, to Ba2 (LGD 3) from Baa3

  -- Junior Subordinated Interest-Deferrable Capital Securities
     due 2066, to B1 (LGD 6) from Ba2

GTECH rating withdrawn:

  -- Corporate Family Rating at Baa3

  -- No Outlook rating

IGTPLC's Ba2 Corporate Family Rating is supported by the
company's large and relatively stable revenue base, with more
than 80% achieved on a recurring basis. Further support is
provided by the company's vast gaming-related software library,
and multiple delivery platforms, as well as potential growth
opportunities in their digital, mobile gaming and lottery
products. IGTPLC is also the sole concessionaire of the world's
largest instant lottery (Italy), and holds facility management
contracts with some of the largest gaming lotteries in the US,
including New York, California, and Texas. Finally, the company
is a leading provider of social and interactive gaming worldwide.

Risks include IGTPLC's material exposure to weak slot replacement
demand in the US as well as significant revenue concentration
(more than 35%) coming from its Italian operations, a portion of
which -- its Lotto concession contract -- expires in June 2016
and is currently up for re-bid. Compounding these risks is the
company's relatively high leverage position with its debt/EBITDA
ratio at about 4.6x

IGTPLC's SGL-2 Speculative Grade Liquidity indicates good
liquidity. The company benefits from the lack of material debt
maturities over the next 3 years along with Moody's expectation
that the company will comfortably remain in compliance with the
financial covenants regarding leverage and interest coverage
contained in its $1.80 billion and EUR1.05 billion credit
facilities. Moody's expects that IGTPLC will only generate a
modest amount of free cash flow during its first full year of
operations due, in most part, to the expected large capital
outlays related to the Lotto concession contract described above.

The stable rating outlook takes into account Moody's view that
IGTPC's considerable capital expenditure plans in 2015 and 2016,
coupled with a weak outlook with respect to slot replacement,
will make it difficult for the company to reduce its leverage and
generate a meaningful amount of free cash flow during the next
two years, despite management's stated intention to do so. While
expense synergies are possible during the next two years, in
Moody's view, any cost reductions that the company is able to
achieve during this period will more likely provide some level of
downside protection to earnings as opposed to true earnings
improvement. The stable outlook also incorporates Moody's
assumption that IGTPLC will successfully retain its Lotto
concession contract.

A ratings upgrade is not likely in the next two years given
Moody's view that IGTPLC will be challenged to reduce leverage
during that period. A higher rating may be possible over the
longer-term should the company successfully demonstrate
sustainable earnings growth through a combination of revenue and
expense improvements, as well as maintain a positive free cash
flow profile with a debt/EBITDA ratio below 4.0x. Ratings could
be lowered if it appears that business conditions will make it
more difficult for IGTPLC to maintain a debt/EBITDA ratio below
5.0x. Ratings could also be downgraded if the company is not
successful in retaining its Lotto concession.

International Game Technology PLC (NYSE: IGT) generates
approximately $6 billion in revenue, and has corporate
headquarters in London, and operating offices in Rome, Italy;
Providence, Rhode Island; and Las Vegas, Nevada.

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

LEACH HOMES: Goes Into Liquidation
---------------------------------- reports that plans to build more than
500 homes on the outskirts of Hoddesdon will go ahead, despite
one of the developers going into liquidation.

Lands Improvement Holdings is to press ahead with the High Leigh
Garden Village development, according to

However, it will do so alone after Leach Homes, which jointly
promoted the controversial proposals with Lands Improvement,
entered voluntary liquidation, the report relates.

An established firm of 80 years' standing, Buntingford-based
Leach Homes was responsible for developments on the Hundred Acre
and Roselands estates in Hoddesdon.

"The shareholders are committed to ensuring that all of the
agreed liabilities of the company are met before the conclusion
of the liquidation," a released statement said, the report notes.

It is understood that the High Leigh project was not a factor in
the decision to bring in liquidators, the report discloses.

The two firms had formed the High Leigh Garden Village
Partnership in order to promote the project jointly, sharing the
costs, the report notes.

Leach Homes would also have undertaken some of the house

Lands Improvement, which had owned the majority of the land
involved, has now taken sole control of the project, including
all of the associated costs, the report says.

House builders will be brought in to carry out the construction
as previously planned, including what was formerly Leach Homes'
share, the report discloses.

Planning permission has already been granted for the development
of 523 homes on the site off the Dinant Link Road, including a
school and sports facility, the report notes.

A sum of about GBP25 million has been pledged for these and other
improvements to doctor surgeries, transport links, and the town
center, which Land Improvements intends to honor, the report

However, Tom Carroll, one of the campaigners to oppose the
development, is pressing for a secure bond to be drawn up over
the contributions, the report discloses.

MOY PARK: Moody's Affirms 'B1' CFR After Tap Issue Announcement
Moody's Investors Service affirmed Moy Park Holdings (Europe)
Limited's B1 Corporate Family Rating and probability of default
rating (PDR) of B1-PD. Concurrently, Moody's has also affirmed
the B1 rating of the outstanding GBP200 million senior unsecured
notes of Moy Park (Bondco) Plc. All ratings carry a Stable

The rating action follows the announcement that Moy Park will
reopen the outstanding 6.25% notes and upsize them to GBP300
million from GBP200 million. The terms and conditions of the
notes will be unchanged and around GBP71 million of the proceeds
will be paid up to its parent company Marfrig Global Foods S.A.
(B2, Stable).

The contemplated transaction is credit negative given the
incremental GBP100 million debt incurred by Moy Park as well as
the use of proceeds in the form of distribution to Marfrig. Pro
forma for the transaction, Moody's estimates Moody's Adjusted
Debt to EBITDA to increase significantly to 4.9x from 3.8x as of
YE14. However, this is compensated by Moy Park's good financial
performance as of YE 2014 with reported recurring EBITDA up by
12.9% to GBP107.9 million driven by increase in margins and
volume growth. The rating of the notes is the same as the CFR and
it is also unchanged; this rating reflects the fact that the
notes will continue to be senior unsecured and pari passu with
the outstanding GBP20m RCF.

Moy Park's CFR reflects: (1) the company's limited product
diversification, with approximately 80% of sales achieved in
fresh or convenience poultry; (2) its high geographic and
customer concentration, with 78% of sales generated within the UK
and Ireland; (3) the potential for events beyond the company's
control, such as food scares, which could negatively impact
demand for poultry products; and (4) a leveraged credit profile,
with weak margins reflecting the commodity-like nature of its
products, and weak free cash flow (FCF). Moody's adjusted
leverage as of YE15 is expected to be around 4.6x, while we
anticipate that FCF will remain negative this year in light of
the contemplated distribution to Marfrig.

The rating also positively reflects the company's: (1) leading
market position, evidenced by Moy Park's number one or number two
supplier positions with the majority of its customers; (2)
favorable sector demand dynamics since poultry remains the most
affordable type of meat and the protein segment whose consumption
is growing the fastest; and (3) strong, longstanding
relationships with key suppliers and customers.

The stable outlook on the ratings reflects Moody's expectation
that: (1) Moy Park will continue to show positive momentum in
earnings and ongoing ability to cope with raw material price
volatility; and (2) the company will preserve some liquidity
cushion, as evidenced by a comfortable cash balance and headroom
under its financial covenants and (3) no additional dividend will
be paid to Marfrig in the next 12 to 18 months beyond the
proceeds from this transaction.

As Moy Park leverage is currently high for the B1 category, and
deleveraging is likely to be slow, near-term positive pressure is
unlikely. To be considered for the Ba rating category, Moy Park
would need to demonstrate a significant and sustainable
improvement in margins and free cash flow generation, with
adjusted debt/EBITDA also falling towards 3.5x.

Negative pressure could be exerted on Moy Park's ratings if: (1)
adjusted EBITDA margins were to fall towards 5%; (2) free cash
flow remained negative beyond 2015; (3) leverage increased to
more than 5.0x; (4) its liquidity were to weaken; or (5) the
financial profile and/or rating of its parent Marfrig were to
deteriorate, while it remained a majority and/or controlling

The principal methodology used in these ratings was Global
Protein and Agriculture Industry published in May 2013. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

MOY PARK: S&P Assigns 'B+' Rating to GBP100MM Sr. Unsecured Notes
Standard & Poor's Ratings Services assigned its 'B+' issue rating
and '3' recovery rating to the proposed tap issuance of GBP100
million senior unsecured notes due 2021 to be issued by U.K.-
based poultry producer Moy Park (Bondco) PLC (Moy Park).  S&P's
recovery expectations are in the lower half of the 50%-70% range.

At the same time, S&P affirmed its 'B+' issue rating on Moy
Park's existing senior unsecured notes.  The recovery rating is
unchanged at '3'.  S&P's recovery expectations are in the lower
half of the 50%-70% range.

The issue and recovery ratings on the proposed GBP100 million
senior unsecured bond are based on preliminary information and
are subject to successful issuance of the bond and S&P's
satisfactory review of final documentation.  S&P understands that
the proceeds of the proposed bond will be upstreamed to Mafrig
Global Foods (Mafrig) and used to refinance Mafrig's existing
debt, such that on a group basis the impact would be leverage
neutral, with minimal increase in leverage on Moy Park, but would
improve the cost of funding.

The final terms of the notes will be subject to market


S&P understands that the terms and conditions of the GBP100
million tap issuance will be similar to those of the existing
GBP200 million senior unsecured notes.

S&P's hypothetical default scenario assumes revenue and margin
contraction, owing to the company's inability to withstand
increasing commodity prices (mainly poultry feed costs), the
outbreak of poultry disease, and the loss of key customers, as
well as increased competition.

S&P value sMoy Park as a going concern given its leading market
position in the U.K. and its strong presence in retail and food
service channels.

Simulated default and valuation assumptions
   -- Year of default: 2019
   -- Jurisdiction: U.K.

Simplified waterfall
   -- Gross enterprise value at default: GBP231 mil.
   -- Administrative costs: GBP16 mil.
   -- Net value available to creditors: GBP215 mil.
   -- Priority claims: GBP41 mil.
   -- Unsecured debt claims: GBP327 mil.*
   -- Recovery expectation: 50%-70% (lower half of range)

*All debt amounts include six months' prepetition interest.

PREMIERTEL PLC: Fitch Affirms 'BBsf' Rating on Class B Notes
Fitch Ratings has affirmed Premiertel plc's CMBS notes as:

  GBP71,672,000 Class A (XS0180245515) due May 2029: affirmed at
  'AAsf'; Outlook Stable

  GBP201,535,643 Class B (XS0180245945) due May 2032: affirmed at
  'BBsf'; Outlook Stable

Premiertel plc is a securitization of rental cash flows from a
portfolio of five office properties located throughout the UK
(two in England, two in Scotland and one in Northern Ireland)
fully let to British Telecommunications plc (BT;


The affirmation of the class A notes reflects the stable
performance of the UK commercial real estate market segments
corresponding to the underlying collateral.  The assets' vacant
possession value provides adequate coverage, alongside an
available liquidity facility, to support the class A notes' high
investment-grade rating.  The notes are not being repaid as fast
as originally expected, which is reflected in a cumulative total
amortization shortfall (versus schedule) of GBP736,552 at the
February 2015 interest payment date (IPD), up from GBP366,975 at
the same period a year ago.

Although the class B notes may not be repaid in full from
contracted income derived under the long lease to BT, Fitch
expects the borrower nevertheless to repay its indebtedness.
This view has not changed materially since the last rating
action, warranting an affirmation.

The shortfall is driven by higher transaction costs arising from
standby drawdowns of the liquidity facility.  The longer this
added cost is being borne, the more likely the associated drag on
amortization will leave a portion of the class B notes unpaid at
the expiry of the lease in 2032.  This exposes class B investors
to risks associated with the borrower's ability and willingness
to refinance the portfolio in time for legal maturity in 2032 (a
few months before lease expiry).

As there is no tail period, Fitch analyses refinancing risk in
relation to the sufficiency of estimated future equity in the
run-up to bond maturity, in accordance with its loan rating
approach. While any unpaid debt should be limited (provided the
BBB lease performs) reliance on unenforceable financial
incentives currently constrains the class B notes from being
rated investment grade.


A change in property market conditions might cause a change in
the rating of the class A notes.  Also, provided BT performs,
over time these notes will deleverage further, which may lead to
an upgrade. As the rating of the class B notes is capped at the
rating of BT, a change in the rating of BT may lead to a change
in the rating of the class B notes.

Fitch estimates 'Bsf' recovery proceeds of GBP324 million.


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

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

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


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

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

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

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