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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

               Thursday, May 28, 2015, Vol. 16, No. 104

                            Headlines

F R A N C E

CREDIT FONCIER: Fitch Affirms 'BBsf' Rating on Class E Notes
EUROPCAR GROUPE: S&P Puts 'B' CCR on CreditWatch Positive
SGD GROUP: S&P Affirms 'B' Corp. Credit Rating, Outlook Stable

* FRANCE: Corporate Insolvencies Continue to Fall in April


G R E E C E

GREECE: Possible Euro Exit Eclipses Dresden G-7 Meeting Agenda


I T A L Y

MONTE DEI PASCHI: Launches EUR3-Bil. Share Sale to Plug Deficit


L U X E M B O U R G

ALTICE US: S&P Assigns Preliminary 'B' CCR, Outlook Stable


N E T H E R L A N D S

LEVERAGED FINANCE II: S&P Raises Rating on Class IV Notes to B


R O M A N I A

HIDROELECTRICA: Won't Exit Insolvency Process This Year


R U S S I A

SODRUGESTVO INDUSTRIES: Fitch Rates RUB5BB Proposed Bond 'B(EXP)'


S P A I N

ENDESA SA: Fitch Affirms 'BB+' Rating on Preferred Stock


T U R K E Y

EREGLI DEMIR: S&P Raises CCR to 'BB-' on Strong Results


U K R A I N E

UKREXIMBANK: Reaches Preliminary Debt Deal with Creditors


U N I T E D   K I N G D O M

E-QAS TRAINING: Faces Liquidation After Failing to Find Funds
KEYDATA INVESTMENT: FCA Imposes Fine on Former CEO Over Collapse


                            *********


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F R A N C E
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CREDIT FONCIER: Fitch Affirms 'BBsf' Rating on Class E Notes
------------------------------------------------------------
Fitch Ratings has affirmed CFHL-1 2014,as:

Class A1 (FR0011782382): affirmed at 'AAAsf'; Outlook Stable
Class A2 (FR0011782390): affirmed at 'AAAsf'; Outlook Stable
Class B (FR0011782408): affirmed at 'AAsf'; Outlook Stable
Class C (FR0011782416): affirmed at 'Asf'; Outlook Stable
Class D (FR0011782424): affirmed at 'BBBsf'; Outlook Stable
Class E (FR0011782432): affirmed at 'BBsf'; Outlook Stable

This transaction is a French RMBS backed by loans originated by
Credit Foncier de France (CFF, A/Stable/F1), a wholly-owned
subsidiary of Groupe BPCE (GBPCE, A/Stable/F1).

KEY RATING DRIVERS

Stable Asset Performance

As the transaction only closed a year ago, arrears remain limited,
with total arrears excluding defaults (up to six months) at 1.7%,
of which 1.2% is only in arrears by one month.  Even with a
conservative default definition (loans in arrears by more than six
months), the cumulative amount of default remains negligible and
no property has been taken into possession so far.

Structure Providing Protection and Liquidity

The transaction has a non-amortizing reserve fund (RF) equivalent
to 0.5% of the initial note balance (0.57% of the current note
balance).  In addition to the RF, principal receipts were used to
fund a liquidity reserve that will remain equivalent to 3% of the
outstanding note balance at any time.  The proceeds from the
amortization will flow back to pay down the notes.

The pool profile has not significantly changed compared with last
year and credit enhancement (CE) has started to build up through
note amortization.  As a result, all tranches have sufficient CE
to support their ratings.

RATING SENSITIVITIES

The transaction is still relatively new, and although the pool has
good seasoning (63 months), arrears and defaults are expected to
build up over time.  A greater than expected performance
deterioration could have a negative impact on the ratings.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation
to this rating action.

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pool and the transaction.  There were no findings that were
material to this analysis.  Fitch has not reviewed the results of
any third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

Prior to the transaction closing, Fitch reviewed the results of a
third party assessment conducted on the asset portfolio
information, which indicated errors or missing data related to the
loan information.  These findings were considered in this analysis
by assuming a 5% haircut to the recovery rates.

Prior to the transaction closing, Fitch conducted a review of a
small targeted sample of CFF's origination files and found
inconsistencies or missing data related to the property purchase
price information.  These findings were considered in this
analysis by applying a 6% haircut to all property values.

Overall, Fitch's assessment of the information relied upon for the
agency's rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION

The information below was used in the analysis.

   -- Loan-by-loan data provided by CFF Asset Resolution Limited
      as at March 2015.

   -- Transaction reporting provided by CFF Asset Resolution
      Limited as at March 2015.


EUROPCAR GROUPE: S&P Puts 'B' CCR on CreditWatch Positive
---------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch with
positive implications its 'B' long-term corporate credit ratings
on Europcar Groupe S.A. (Europcar) and its wholly owned financing
subsidiary Europcar International S.A.S.U.

S&P assigned a 'CCC+' issue rating to the proposed EUR475 million
senior notes due 2022 to be issued by Europcar Notes Ltd., and S&P
placed the rating on Credit Watch with positive implications, in
line with the corporate credit ratings.  S&P assigned a recovery
rating of '6' to the proposed notes, indicating S&P's expectation
of negligible (0%-10%) recovery in the event of a payment default.

At the same time, S&P corrected its 'B+' issue rating and '2'
recovery rating on the EUR350 million revolving credit facility
(RCF) by reinstating them, after the ratings were withdrawn in
error on April 19, 2015.  S&P affirmed its 'B' issue rating on the
EUR350 million senior secured notes due 2021; the '4' recovery
rating is unchanged.  S&P placed the issue ratings on both the RCF
and the senior secured notes on Credit Watch with positive
implications, in line with the corporate credit ratings.

S&P also affirmed its 'B-' issue ratings on the EUR324 million
subordinated secured notes due 2017, with an unchanged '5'
recovery rating, and S&P's 'CCC+' issue ratings on the EUR400
million subordinated unsecured notes due 2018, with an unchanged
'6' recovery rating.  S&P expects to withdraw the ratings on these
debt instruments upon completion of the refinancing.

The CreditWatch placement follows Europcar's announcement of a
planned IPO and a new bond issue to partly repay existing
corporate debt.  If the IPO, refinancing, and debt reduction go
ahead as planned, S&P expects Europcar's leverage ratios for 2015
and 2016 to be slightly stronger.  This could lead S&P to raise
the corporate credit rating, probably by one notch.

S&P's base case scenario -- which is subject to market
conditions -- is that the IPO will raise EUR475 million of
proceeds and Europcar will issue a new EUR475 million bond.  The
group will use these proceeds to redeem existing EUR400 million
and EUR324 million bonds.  After transaction-related costs, S&P
anticipates net funds raised of around EUR125 million.

S&P's assessment of Europcar's business risk profile is "fair,"
constrained by S&P's view of the competitive, cyclical, and
capital-intensive nature of the car rental market.  S&P also
considers Europcar to have limited business and geographic
diversity, with European countries accounting for 93% of 2014
revenues.  Annual restructuring expenses have lowered profits, and
the group remains loss-making at the pretax level after
significant interest and other financial expenses.

Supportive factors for the company's business risk profile include
the group's leading position and market share in Europe, where it
is the clear market leader.  S&P considers its business mix to be
balanced between business (55%) and leisure (45%) segments, as
well as between airport (42%) and non-airport (58%).  S&P believes
that Europcar benefits from good operational flexibility and
efficiency, with a fleet utilization rate of 76% in 2014.  This is
supported by Europcar's use of buy-back arrangements with
manufacturers or dealers for most of its fleet (92% in 2014),
which reduces residual value risk, and provides financial
flexibility to reduce fleet size and related debt if needed during
a downturn.  S&P also recognizes that the company is continuing to
make progress with cost-saving initiatives, which should continue
to support margins.

S&P will continue to assess Europcar as owned by a financial
sponsor, even after the IPO, as S&P expects investment company
Eurazeo's shareholding to remain above 40%.  This does not
constrain the rating, however.

S&P's current assessment of Europcar's financial risk profile is
"highly leveraged."  As of Dec. 31, 2014, S&P's adjusted debt
calculation for Europcar was EUR3.7 billion.  On this basis, S&P's
year-end ratio of FFO to adjusted debt was 10% and ratio of
adjusted debt to EBITDA was 5.2x.  S&P adjusts the EUR2.2 billion
of on-balance-sheet reported debt by adding EUR1.4 billion for
operating leases, mostly related to that portion of the fleet
which is financed in this way.  This reflects S&P's usual
adjustment based on the present value of lease payments, in which
S&P assumes that the year one payments for the fleet continue
in future years.  S&P regards Europcar's retained cash as being
tied to operations, so S&P makes no adjustment for cash.

S&P expects Europcar's liquidity to remain adequate.  The company
has a number of funding facilities, including a EUR350 million RCF
for general corporate purposes.  Europcar has several other
facilities that are available only for fleet financing, to be used
to finance the growth of the fleet in all its main markets, in
conjunction with off-balance-sheet operating lease arrangements.
S&P do not consider these fleet financing facilities as available
for general corporate purposes.

Europcar's funding requirements are typically highest in the
summer.  They are supported by drawings under its fleet financing
facilities, which appear sufficient.  S&P considers that Europcar
would likely be able to absorb a marked decrease in demand,
notably because of its demonstrated capacity to adapt its fleet
size to market conditions at short notice.  Non-fleet-related
capital expenditure is limited.  S&P expects the company to
continue to make small bolt-on acquisitions.

As at Dec. 31, 2014, Europcar had access to a EUR350 million RCF
for general corporate purposes with a three-year maturity to 2018,
which will be extended to five years to 2020 on completion of the
IPO.  This facility was EUR99 million undrawn at year-end 2014
(when the facility size was EUR300 million).  Europcar also has
access to the following fleet financing facilities:

   -- EUR1.1 billion senior asset revolving facility, with a
      four-year maturity to 2019, EUR584 million undrawn at year
      end (when the facility size was EUR1.0 billion);

   -- GBP475 million of U.K. facilities, which mature in 2017,
      GBP202 million undrawn;

   -- EUR241 million short-term Australian dollar (A$)
      denominated facilities, renewed annually, A$124 million
      undrawn; and

   -- EUR60 million of other short-term leasing facilities,
      renewed annually, EUR39 million undrawn.

As of Dec. 31, 2014, the group had EUR1.1 billion of short-term
debt, of which EUR201 million was drawings under its EUR300
million RCF, and almost EUR900 million drawings under the medium-
term fleet financing facilities.

Undrawn committed bank facilities at the corporate level comprised
only EUR99 million as at Dec. 31, 2014, but this has increased by
EUR50 million due to the increase in RCF.

As of Dec. 31, 2014, Europcar had EUR91 million of unrestricted
cash, but S&P excludes it from its liquidity assessment as S&P
considers it as tied to the operations.

S&P aims to resolve the CreditWatch following completion of the
IPO, refinancing, and effective debt repayment.

S&P could raise the long-term corporate credit rating, probably by
a single notch to 'B+', on completion of the IPO, the refinancing,
and debt repayment, if these proceed as planned.

If the IPO does not go ahead, or if the repayment of debt does not
occur, S&P would likely affirm the existing ratings.


SGD GROUP: S&P Affirms 'B' Corp. Credit Rating, Outlook Stable
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'B' long-term corporate credit rating on SGD Group SAS, a France-
based manufacturer of glass packaging for the pharmaceutical and
perfume industries.

S&P also assigned its 'B' long-term corporate credit rating to SGD
Group subsidiaries SGD S.A. and SGD KIPFENBERG GMBH.  The outlook
on these issuers is stable.

At the same time, S&P affirmed its 'B' issue rating on SGD Group's
EUR350 million senior secured notes issued by SGD Group SAS and
S&P's 'B+' issue rating on its EUR35 million revolving credit
facility (RCF) issued by SGD S.A. and SGD KIPFENBERG.  The
recovery rating on the EUR350 million senior secured notes is '4',
indicating S&P's expectation of average recovery prospects for
lenders in the event of a payment default, in the lower half of
the 30%-50% range.  The recovery rating on the EUR35 million RCF
is '2', indicating S&P's expectation of substantial recovery
prospects for lenders in the event of a payment default, in the
upper half of the 70%-90% range.

The affirmation of the corporate credit rating reflects S&P's view
that SGD Group's operating performance remains in line with S&P's
expectations for the rating, with stable revenue growth and an
EBITDA margin at about 15.5% forecast for 2015.  At the same time,
leverage remains relatively high, with debt to EBITDA at about
7.0x-7.5x in the same period.  S&P continues to assess SGD Group's
business risk profile as "fair" and its financial risk profile as
"highly leveraged," as S&P's criteria define these terms.

The ratings on SGD S.A. and SGD KIPFENBERG reflect that on the
parent SGD Group, as S&P sees them as core subsidiaries of the
group based on S&P's criteria.

S&P's "fair" business risk profile assessment reflects SGD Group's
relatively limited scale and scope compared with its rated peers,
its sole focus on glass packaging for the pharmaceutical industry,
and its somewhat concentrated geographic focus; Western Europe
accounted for nearly 60% of its revenues in 2014.

S&P assesses SGD Group's financial risk profile as "highly
leveraged," owing to its private equity ownership and high debt
leverage, including the presence of shareholder loans, which S&P
views as debt under its criteria.  It also reflects S&P's forecast
of negative free cash flow generation over the next year because
of high capital spending.

The stable outlook reflects S&P's view that, over 2015-2016, SGD
Group's credit metrics will remain commensurate with S&P's "highly
leveraged" financial risk profile assessment.  S&P expects
leverage metrics will slightly increase, because the company will
cover substantial capital expenditures on the construction of the
new production plant in France.  The stable outlook also assumes
that the demerger process will be successfully completed by the
end of 2015.

S&P could take a negative rating action if the company's liquidity
position deteriorated to "weak" from "less than adequate," due to
a mismatch between liquidity sources and large capital spending
outlays or working capital variations.  Significantly weaker
profitability than S&P currently anticipates, or unexpected delays
to the demerger process, could also put downside pressure on the
rating.

S&P might take a positive rating action if SGD Group showed a
higher-than-expected improvement in profitability, leading to
stronger credit metrics, in line with levels S&P views as
commensurate with an "aggressive" financial risk profile over a
sustained period.  Specifically, this would include a ratio of
adjusted FFO to debt of more than 12% and debt to EBITDA of less
than 5x, including shareholder loans.  This would need to be
accompanied by S&P's revised assessment of the group's financial
policy, given its private equity ownership, and the improvement of
liquidity to "adequate."  However, S&P views this scenario as
unlikely in 2015, when it thinks the company will likely report
negative free cash flow.


* FRANCE: Corporate Insolvencies Continue to Fall in April
----------------------------------------------------------
Jessica Chen at Reuters reports that French corporate insolvencies
continued to fall in April, data showed on May 26 in the latest
sign of an upturn in the euro zone's second largest economy.

Figures published by French trade insurance company Coface showed
there were a total of 62,473 corporate failures in the 12 months
till end-April, 2.7%  down on the previous year, Reuters relates.

That came after the 2.9% fall seen for the calendar 2014 year as a
whole, the biggest such fall since 2010, Reuters notes.

"This trend reflects notably the temporary impact of household
spending linked to lower oil prices and the improvement in
corporate margins," Reuters quotes Coface as saying in a
statement.

The fall came despite a temporary rise in bankruptcy filings in
the first four months of 2015, partly due to strikes in industrial
tribunals which delayed the recording of cases, Reuters states.

The cost to suppliers of insolvent companies fell over the 12
months to April by 16.6%, Reuters relays.

According to Reuters, the number of companies going bankrupt is
still high compared to mid-2012, when just over 58,000 went
insolvent in the preceding 12 months.

Coface noted bankruptcies are continuing to rise in the metals,
construction and household services sectors, Reuters relates.



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G R E E C E
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GREECE: Possible Euro Exit Eclipses Dresden G-7 Meeting Agenda
--------------------------------------------------------------
Paul Gordon and Alessandro Speciale at Bloomberg News report that
the world's top finance ministers and central-bank chiefs meeting
in Dresden this week are already struggling to stick to an agenda
set by their German hosts that doesn't mention Greece.

In a sign of deepening global concern over the country's stumbling
bailout talks, U.S. Treasury Secretary Jacob L. Lew spoke with
Greek Prime Minister Alexis Tsipras on May 27 for the second time
in less than a week and told a London audience that "everyone has
to double down" on reaching an accord, Bloomberg relates.  Time is
running out for the Mediterranean country to agree with its
German-led creditors over economic reforms needed to unlock funds
before payments on International Monetary Fund loans come due next
month, Bloomberg notes.

The Group of Seven meeting starting on May 27 will officially
focus on big-picture themes of economic growth, tax evasion and
strengthening the global financial architecture, Bloomberg
discloses.  Yet the most pressing matter for many of the policy
makers attending is whether Greece can stay in the euro, and
whether the world can handle the consequences if it can't,
Bloomberg states.

"There are no major pressing issues related to currencies or trade
to be discussed," Christian Schulz, an economist at Berenberg Bank
in London, as cited by Bloomberg, said in an interview.  "The
worry on everyone's mind will of course be Greece, and the message
for Greece is going to be that it has to do what it takes to save
its economy."

According to Bloomberg, while the G-7 doesn't have a mandate to
decide how to deal with Greece, it brings together officials from
the euro area's three biggest economies, as well as the European
Central Bank, the IMF and the European Union -- the institutions
backing the EUR240 billion (US$262 billion) aid package that
expires next month.

The Treasury, as cited by Bloomberg, said in an e-mailed statement
Mr. Lew told Tsipras in a phone call that failure to agree on a
path forward would create immediate hardship for Greece and broad
uncertainties for Europe and the global economy.  He urged all
parties to find common ground and reach an agreement quickly,
Bloomberg relays.

"Brinksmanship is a dangerous thing when it only takes one
accident," Bloomberg quotes Mr. Lew as saying on May 27 at the
London School of Economics while en route to the G-7 meeting.  "So
everyone has to double down and treat the next deadline as the
last deadline and get this resolved.  The risk of going from
deadline to deadline only increases the risks of accidents."

According to Bloomberg, two people familiar with the matter, who
asked not to be identified because the discussions are private,
said the ECB's Governing Council meanwhile left the level of
emergency cash available to Greek banks unchanged at EUR80.2
billion.  The money is intended to replace deposits that are being
withdrawn amid uncertainty over Greece's future in the currency
bloc, Bloomberg discloses.



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I T A L Y
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MONTE DEI PASCHI: Launches EUR3-Bil. Share Sale to Plug Deficit
---------------------------------------------------------------
Valentina Za and Silvia Aloisi at Reuters reports that Monte dei
Paschi di Siena launched a EUR3 billion (US$3.3 billion) share
sale on May 25, its second cash call in less than a year, to plug
a capital shortfall exposed by last year's Europe-wide stress
tests and repay state aid.

The Tuscan bank is raising more than its stock market value which
stood at EUR2.4 billion at the end of last week by selling 2.56
billion new shares.

The highly dilutive offer, which follows a EUR5 billion capital
increase last June, is fully underwritten by a group of investment
banks that committed to buy any unsold shares.

The offer is for 10 new shares at 1.17 euros per share for every
existing share held, Reuters discloses.  The rights to buy into
the offer can be traded until June 8 and can be exercised until
June 12, Reuters notes.

Like last year's sale, technical factors distorting the stock
price make it difficult to gauge investors' appetite for the
issue, Reuters says.  But moves by two of the bank's core
shareholders to trim their stakes signaled lukewarm support for
the deal, according to Reuters.

In any case, the European Central bank has already told Monte dei
Paschi that the capital increase will not be enough to solve its
problems -- a mountain of bad loans, a weak capital base and
earnings underperformance -- recommending that the bank finds a
buyer quickly, Reuters relays.

According to The Financial Times' Rachel Sanderson, a UBS and
Citigroup-led consortium of 21 banks will make EUR130 million in
fees from the latest capital raising.

The fees paid to bankers this time are slightly higher on a
relative basis than the EUR260 million paid in fees for its issue
last year, as detailed in its prospectus, the FT notes.

The capital raising marks a watershed for Monte Paschi which swung
back to a small profit in the first quarter for the first time in
three years, the FT states.

It will allow the bank to pay back state aid bailout bonds for the
first time since 2008, according to the FT.  It also threatens to
all but wipe out the holding of the foundation that five years ago
owned 80 per cent of Monte Paschi and which is still undecided as
to whether to take part, the FT says.

Meanwhile, Alessandro Profumo, chairman of Monte Paschi and former
chief executive of UniCredit, has said he will step down after it
is done, the FT relays.

                     About Monte dei Paschi

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



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L U X E M B O U R G
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ALTICE US: S&P Assigns Preliminary 'B' CCR, Outlook Stable
----------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'B'
preliminary corporate credit rating to Luxembourg-based Altice US
Holding I S.ar.l. The outlook is stable.

At the same time, S&P assigned its preliminary 'BB-' issue-level
rating and preliminary '1' recovery rating to the company's
proposed US$1.1 billion of senior secured notes due 2023.  The
notes will initially be offered by Altice US Finance I Corp., and
then upon close of the transaction, the borrower will become
Cequel Communications LLC.  The '1' recovery rating indicates
S&P's expectation for very high (90%-100%) recovery for lenders in
the event of a payment default.  The proposed senior secured notes
will rank pari passu with the existing senior secured credit
facility at operating subsidiary Cequel Communications LLC.  S&P
expects the recovery rating on Cequel Communications LLC's
existing senior secured credit facility to remain unchanged at
'1', with an issue-level rating of 'BB-'.

In addition, S&P assigned its preliminary 'B-' issue-level rating
and preliminary '5' recovery rating to the company's proposed
US$300 million of senior notes due 2025.  The notes will initially
be offered by Altice US Finance II Corp., and then upon close of
the transaction, the borrowers will become Cequel Communications
Holdings I LLC and Cequel Capital Corp.  The '5' recovery rating
indicates S&P's expectation for modest (10%-30%; upper end of the
range) recovery for lenders in the event of a payment default.

Despite the increase in senior secured debt ahead of the unsecured
notes, the upward revision of S&P's senior unsecured recovery
rating reflects an increase in the net enterprise value for the
company under S&P's hypothetical default scenario.  Under S&P's
recovery criteria, it establishes a hypothetical path to default,
forecast the company's cash flow at the point of default, and then
value the company based on S&P's estimate of EBITDA at the end of
the reorganization process.  Due to a material increase in fixed
charges under the proposed capital structure, and a shorter time
to default as a result of a lower corporate credit rating, S&P
assumes the company defaults at a higher level of EBITDA compared
to our previous valuation.  In addition, based on S&P's
expectation that the company will achieve some degree of permanent
cost synergies, S&P has modestly raised its estimate of emergence
EBITDA to reflect the potential for a ramp up in profitability
post-emergence.  The implied valuation of US$9.1 billion provides
a further data point in S&P's recovery analysis, although its
revised net enterprise value of US$4.7 billion is still
conservative in S&P's view, representing nearly a 50% haircut.

S&P also assigned its preliminary 'CCC+' issue-level rating and
preliminary '6' recovery rating to the company's proposed US$320
million of senior holding company notes due 2025, which will be
issued by Altice US Finance S.A..  The '6' recovery rating
indicates S&P's expectation for negligible (0%-10%) recovery for
lenders in the event of a payment default.

"The preliminary 'B' corporate credit rating reflects the
company's high pro forma leverage and uncertainty regarding
financial policy and future acquisitions in the U.S., which could
keep leverage elevated over the next few years," said Standard &
Poor's credit analyst Michael Altberg.

These factors are partially offset by Cequel's position as an
incumbent cable operator with good revenue visibility provided by
subscription based services, its lack of material broadband
competition in its markets, and the potential for modest margin
improvement.  In addition to geographic diversification, Altice
believes it can achieve approximately US$215 million in operating
cost savings, as well as modest capital spending efficiencies.
S&P believes there is some scope for cost savings in terms of
leveraging Altice's scale in the areas of equipment procurement
and select programming.  In addition, Altice has a track record of
improving profitability by reducing operating expenses through
outsourcing initiatives and overhead reduction.  That said, S&P
believes that the company's targeted savings, which amount to
nearly 14% of total operating expenses in 2014, could be
relatively challenging to achieve without affecting subscriber
churn.  Under S&P's base-case forecast, it has factored in a more
moderate degree of cost savings, in the range of 5%-7% of total
operating expenses.

The stable rating outlook reflects S&P's expectation that despite
high pro forma leverage, Altice U.S. will continue to benefit from
growth in HSD, voice, and business customers over the next few
years.  In addition, while capital spending will remain elevated
in 2015 and 2016 due to network investments, the company should
continue to generate healthy FOCF that could support leverage
reduction to around 7x over the next 12 months barring unexpected
events.

S&P believes the likelihood of a downgrade is remote over the next
12 months.  Longer term, S&P could lower the rating if cost
cutting initiatives impair the company's competitive position and
lead to increased customer churn and a decline in penetration
rates.  In addition, a downgrade could occur if liquidity narrows
due to unexpected events or the adoption of a more aggressive
financial policy.

While an upgrade is unlikely over the next 12 months, S&P could
raise the rating in the longer term if Altice U.S. is able to
reduce and maintain leverage comfortably below 7x on a sustained
basis.  S&P believes this could be achieved in late 2016 to early
2017 through a combination of organic growth and progress with
cost cutting initiatives.  However, an upgrade would entail
greater clarity around the company's acquisition strategy and
financial policy, including the potential for further U.S.-based
acquisitions and cash distributions to Altice S.A.



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N E T H E R L A N D S
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LEVERAGED FINANCE II: S&P Raises Rating on Class IV Notes to B
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Leveraged Finance Europe Capital II B.V.'s class II, III, and IV
notes.

The upgrades follow S&P's analysis of the transaction using data
from the trustee report dated March 31, 2015, and the application
of S&P's relevant criteria.

Since S&P's Sept. 26, 2013 review, the rated notes have benefited
from an increase in par coverage.

S&P subjected the capital structure to its cash flow analysis to
determine the break-even default rate (BDR) for each class of
notes at each rating level.  The BDRs represent S&P's estimate of
the level of asset defaults that the notes can withstand and still
fully pay interest and principal to the noteholders.  As a result
of the increase in par coverage, S&P believes the rated notes are
now able to withstand a larger amount of asset defaults.

S&P has estimated future defaults in the portfolio in each rating
scenario by applying its criteria for corporate collateralized
debt obligations (CDOs).

S&P's analysis shows that the available credit enhancement for all
classes of rated notes is now commensurate with higher ratings
than those previously assigned.  Therefore, S&P has raised to
'AAA (sf)' from 'BBB+ (sf)' its rating on the class II notes and
to 'B (sf)' from 'CCC- (sf)' its rating on the class IV notes.

As the portfolio became less diversified (currently 24 obligors,
compared with 71 in S&P's previous review), the application of
S&P's largest obligor test capped the ratings on the class III
notes at 'BBB+ (sf)'.  S&P has therefore raised to 'BBB+ (sf)'
from 'CCC+ (sf)' its rating on the class III notes.

Leveraged Finance Europe Capital II is a cash flow collateralized
loan obligation (CLO) transaction managed by BNP Paribas Asset
Management.  A portfolio of loans to mainly European speculative-
grade corporate firms backs the transaction. Leveraged Finance
Europe Capital II closed in September 2003 and its reinvestment
period ended in March 2012.

RATINGS LIST

Leveraged Finance Europe Capital II B.V.
EUR187.2 mil floating-rate secured notes

                                   Rating         Rating
Class            Identifier        To             From
II               XS0174376235      AAA (sf)       BBB+ (sf)
III              XS0174376664      BBB+ (sf)      CCC+ (sf)
IV               XS0174376821      B (sf)         CCC- (sf)



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


HIDROELECTRICA: Won't Exit Insolvency Process This Year
-------------------------------------------------------
Luiza Ilie at Reuters reports that Remus Borza, Hidroelectrica's
manager, said the company will not exit a court-administered
insolvency process this year, as initially expected, due to
lengthy legal challenges.

The European Union state's largest and cheapest power producer was
pushed back into insolvency for the second time in early 2014, and
is being run by a court-appointed manager, Reuters discloses.

The firm first had to declare insolvency in 2012, hit by a severe
drought and a string of contracts under which it sold the bulk of
its output below market prices, losing US$1.4 billion over six
years, Reuters recounts.

It underwent restructuring, posting record profits last year, and
cancelled the deals, Reuters relays.  But contract holders
challenged their cancellation and a court ruling pushed the firm
back into insolvency, where it was expected to stay until June
2015, Reuters relates.

"The court challenges are advancing very slowly," Reuters quotes
Mr. Borza, as saying adding the company still faced 19 ongoing
trials out of an initial 75.

"The company will definitely not exit insolvency this year.  We
hope next year."

The leftist government of Prime Minister Victor Ponta agreed under
the terms of its EUR4 billion  (US$4.4 billion) aid deal from the
International Monetary Fund and the European Commission to list a
minority stake in the firm, Reuters recounts.

While under insolvency, the company hired advisers to work on its
initial public offering plans and Borza has said a stock offering
could be possible within 3 to 4 months of exiting the process,
Reuters notes.

Hidroelectrica is a Romanian state-owned electricity producer.



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


SODRUGESTVO INDUSTRIES: Fitch Rates RUB5BB Proposed Bond 'B(EXP)'
-----------------------------------------------------------------
Fitch Ratings has assigned Russia-based Sodrugestvo Industries
Ltd.'s prospective RUB5 billion bond an expected local currency
senior unsecured rating of 'B(EXP)' with a Recovery Rating 'RR4'
and an expected National senior unsecured rating of 'BBB-
(rus)(EXP)'.  The final instrument ratings are contingent on the
receipt of final documents conforming materially to information
already received.

Sodrugestvo Industries is a fully consolidated non-operating
subsidiary of Sodrugestvo Group S.A. (Sodrugestvo).

Fitch has also affirmed the Long-term foreign currency Issuer
Default Rating (IDR) of Sodrugestvo at 'B' and assigned a Long-
term local currency IDR of 'B'.  The Outlook is Negative.

The rating of the proposed bond is in line with Sodrugestvo's 'B'
Long-term local currency IDR due to put options of major operating
companies, ensuring bondholders' recourse to Sodrugestvo's main
operating entities.  The rating also reflects adequate expected
recoveries for senior unsecured creditors in the event of default
following a liquidation approach, which we believe would yield
better recoveries for unsecured creditors relative to the going
concern alternative.

Sodrugestvo's IDR continues to reflect the company's sustainable
asset-heavy business model, which has strengthened by the
consolidation of a port terminal, a soybean crushing plant and a
logistics company in June 2014.  However, high leverage, weak
financial flexibility and small scale in terms of funds from
operations (FFO) relative to other rated peers -- keep the IDR in
the 'B' category.  The rating also factors in government support
to the food producing sector, given the food import bans in place
and other measures as the country aims to attain food self-
sufficiency.

The Negative Outlook captures the company's stretched credit
metrics, in particular leverage which we expect to remain at
around 5.0x (readily marketable inventories (RMI)-adjusted) in
FY15-FY16 (year-ending June).  The rating remains pressured by the
weak liquidity position which should improve slightly in case the
bond proceeds are applied to refinancing short-term maturities.

KEY RATING DRIVERS FOR THE BONDS

SPV to Issue Bonds

Sodrugestvo Industries is Sodrugestvo's fully owned subsidiary
established solely for the purpose of domestic bond issuance.  It
plans to issue 10-year RUB5 billion domestic notes with an
effective tenor of a year and a half defined through the
investors' right to put the bond back after the end of the third
coupon period.  As a non-operating company, Sodrugestvo Industries
does not contribute to the group's profits or own any meaningful
fixed assets.  The company will not have any other external debt,
apart from domestic bonds.

Bond Proceeds Mainly for Refinancing

The bond's proceeds are intended to be used mainly for refinancing
short-term bank loans.  While the planned bond issue will enable
Sodrugestvo to diversify its funding options, we do not expect
leverage to materially increase as a result of this transaction.

Bond proceeds will be down-streamed to LLC Torgoviy dom
Sodrugestvo (grain trading entity) and CJSC Sodrugestvo-Soya
(soybean processing) by way of inter-company loans mirroring the
terms of the planned bond.  These intra-group loan agreements
create an unsecured claim on the main profit generating operating
companies thereby mitigating any structural subordination between
the bond issuing SPV and unsecured creditors at operating company
level.

Credit Enhancement by way of Put Options

Bondholders will benefit from irrevocable public offers (put
options) to be issued by Sodrugestvo and its major asset-heavy and
profit-generating operating subsidiaries CJSC Sodrugestvo-Soya,
CJSC Terminal and LLC Torgoviy dom Sodrugestvo (together
"offerors"), effectively giving this instrument recourse to
Sodrugestvo group.  The irrevocable undertakings or offers provide
for an obligation of the offerors to purchase the bond if the
issuer (Sodrugestvo Industries) is in default.  Fitch believes
that obligations under the put options will rank pari passu with
other unsecured obligations of the offerors in case of default.

Adequate Recoveries for Unsecured Bondholders

The expected local currency senior unsecured rating is in line
with Sodrugestvo's Long-term local currency IDR, reflecting good
recoveries, in case of default, for all unsecured debt under
Fitch's liquidation scenario valuation approach.

Despite a sizeable amount of secured indebtedness, recovery
prospects for unsecured debt are supported by Sodrugestvo's asset-
heavy business model with around half of the assets represented by
a newly constructed crushing plant and port terminal in
Kaliningrad, Russia.  In Fitch's calculations it excludes the
portion of inventories from the value available to unsecured
creditors, in line with our RMI approach and, likewise, the
associated secured indebtedness to fund such stock from the debt
waterfall.  Fitch applies a soft cap for Russian jurisdiction;
hence the assigned senior unsecured rating of 'B(EXP)'/'RR4'.

KEY RATING DRIVERS FOR THE IDR

Stretched Credit Metrics

Consolidation of the port terminal, the processing plant and the
logistics company in June 2014, which were previously held off-
balance sheet, resulted in additional debt and interest costs
which were higher than originally envisaged.  Fitch expects new
assets to contribute to profits starting from FY15 and RMI-
adjusted FFO gross leverage to be around 5.0x in FY15 (FY14: 8.4x)
which, if exceeded, would be more consistent with a 'B-' rating
profile.  In particular Fitch would view negatively if management
pursues further expansion plan financed by incremental debt.

The rating affirmation assumes a sustained EBITDAR at or above
USD185 million-USD195 million equivalent to an FFO of around USD85
million, together with controlled capex spending and low dividend
pay outs.  While Fitch acknowledges the loan received from the
controlling shareholder (USD48.5 million received in cash in
FY14), any material prepayments under this loan, breaching its
nature of perpetual equity, would also be considered negative to
the ratings.

More Conservative Growth Strategy

Fitch expects Sodrugestvo to pursue more conservative expansion
after its greenfield projects were finalized in FY14.  Substantial
debt-funded growth will be also constrained by leverage covenants
under the company's major loan agreements.   In FY15, Fitch
expects capex not to exceed USD20 million, which will support the
group's free cash flow (FCF) generation.  In Fitch's projections
it assumed capex and acquisition spending of around USD55 million
a year over FY16-FY18, which, however, may be scaled down to
around USD10 million, due to low maintenance capex requirements of
newly constructed facilities.

EBITDA Margin Stabilization in FY15

In 1HFY15 Fitch-calculated EBITDA margin increased to 9.3% and
Fitch expects it to be around 8% in FY15 (FY14: 3%), due to close
to full utilization of crushing capacity and greater contribution
from the infrastructure and logistics segments.  As a result,
EBITDA will be around USD180 million, despite a decline in
revenues due to weak soft commodity prices and lower grain trading
volumes.

Strengthening Forward Integration

The ratings are supported by Sodrugestvo's asset-heavy business
model with vertical integration into soybean origination, storage,
processing and product delivery.  Fitcch expects the acquisition
of a logistics company and the newly constructed port terminal and
soybean crushing plant in FY14 to provide synergies to existing
operations and strengthen Sodrugestvo's market position starting
from FY15.

Moderate but Improving Diversification

While Sodrugesctvo's vertically-integrated business model is
beneficial in terms of control over the soybean meal and oil
production cycle, Fitch stresses that this approach exposes
Sodrugestvo to the global soybean market dynamics and prices.
However, Fitch expects Sodrugestvo's diversification into grains
to improve in line with expanding collaboration with its strategic
partner Mitsui & Co Ltd.

Moderate Rouble Depreciation Impact

Although Sodrugestvo's debt is primarily in US dollars and most of
its profits are generated in Russia, there is some natural hedge
due to the linkage of soybean and grain prices to world USD-based
prices.  However, Sodrugestvo's pricing power may deteriorate if
rouble depreciation offsets the benefit of low world soybean meal
prices.

LIQUIDITY AND DEBT STRUCTURE

As at end-December 2014 Sodrugestvo's short-term debt amounted to
around USD827 million, out of which only USD156 million could be
re-drawn under existing working capital lines with final
maturities beyond 2015. Although Fitch expects FCF to turn
positive in FY15, liquidity is considered weak as short-term debt
exceeds liquid inventories (RMI) of USD377 million, available
undrawn bank lines of USD44 million and Fitch-adjusted
unrestricted cash balances of USD80 million (all figures at end-
December 2014).

Fitch expects the rouble bond issuance, which is aimed at
refinancing of short-term debt, to shore up Sodrugestvo's
liquidity, albeit its liquidity score will remain below 1.0x.

KEY ASSUMPTIONS

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

   -- Decline in world soft commodities prices in FY15 and FY16,
      before stabilizing

   -- Decrease in grain trading volumes in FY15 and increase
      thereafter with growth peaking in FY16-FY17

   -- Growth in crushing volumes in FY15 due to close to full
      utilization of new crushing capacity

   -- EBITDA of around USD180 million-USD190 million over the
      medium term

   -- Conservative growth strategy with annual capex and
      acquisition spending not exceeding USD20 million in FY15
      and USD55 million thereafter

   -- Adequate liquidity and roll-over of short-term maturities
      at reasonable terms

RATING SENSITIVITIES

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

   -- FFO adjusted gross leverage (RMI-adjusted) sustainably
      above 5.0x, coupled with negative FCF from larger-than-
      expected capex or working capital or due to an aggressive
      financial policy

   -- Deterioration of FFO margin sustainably below 2.5% as a
      result of operating under-performance or increasing
      interest burden

   -- Liquidity erosion caused by the limited availability of
      bank financing in relation to short-term maturities or
      refinancing at more onerous terms than expected

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

   -- FFO adjusted gross leverage (RMI-adjusted) sustainably
      below 5.0x supported by positive FCF, conservative business
      expansion funded by cash flows or equity rather than debt

   -- FFO margin sustainably around 3%

   -- Enhanced liquidity buffer relative to short-term debt
      maturities combined with continuing government support to
      the sector

FULL LIST OF RATING ACTIONS

Sodrugestvo Group S.A.

Long-term foreign currency IDR: affirmed at 'B'; Outlook
  Negative
Long-term local currency IDR: assigned 'B'; Outlook Negative
National Long-term rating: assigned 'BBB-(rus)'; Outlook
  Negative

Sodrugestvo Industries Ltd.

Local currency senior unsecured rating: assigned 'B(EXP)'/'RR4'
National Long-term senior unsecured rating: assigned 'BBB-(rus)
  (EXP)'


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


ENDESA SA: Fitch Affirms 'BB+' Rating on Preferred Stock
--------------------------------------------------------
Fitch Ratings has affirmed Enel Spa and Endesa SA's Long-term
Issuer Default Ratings (IDR) at 'BBB+' with Stable Outlook.

The affirmation reflects the updated business plan, which in
Fitch's view balances attention to debt sustainability with the
necessity of repositioning the group on a sustainable growth
pattern.  The plan maintains the strategic focus on networks,
renewables and retail businesses, foreseeing a reduction of the
installed capacity in conventional generation.  From a
geographical perspective, growth will be pursued mainly in Latin
America, not affecting the overall business risk profile in
Fitch's view.

Fitch's revised forecasts result in average funds from operations
(FFO) net adjusted leverage of 4.0x and FFO interest coverage of
4.3x for 2014-19, which are well positioned for the rating.  Fitch
also notes that Enel has maintained broadly stable leverage over
the past few years, despite the tough regulatory and market
environment in its core markets of Italy and Iberia, which are
currently showing signs of stabilization, with regulatory risk in
Spain receding after the recent changes in 2013/14.

KEY RATING DRIVERS

Large Scale and Diversification

Enel is one of the largest European utilities with a diversified
business and geographical mix, an incumbent position in Italy and
Spain (60% of 2014 EBITDA) and growing interests in Latin America
(20% of EBITDA).  Regulated networks account for about 47% of
EBITDA, while 23% is contributed by renewables and generation,
either subsidized or contracted.  Fitch thinks that this business
profile has allowed the company to offset risks in a singular
country or business line.

Updated Strategy

In March 2015 the group's new senior management (appointed in
2014) presented the updated business plan for 2015-19.  The focus
is on operational efficiency, which will be pursued through the
new organizational structure based on a matrix of business lines
and geographical areas.  Enel is targeting a reduction of cash
costs (maintenance capex + opex) to EUR12.2 billion in 2019 from
EUR13.5 billion in 2014 (partially due to perimeter effect).  This
target seems ambitious, but Fitch views positively the
introduction of clear KPIs to monitor progress.

Expected growth capex has increased to EUR18.3 billion in the
current plan from EUR12.4 billion previously (2014-18).  Almost
half will be invested in renewables (48%), with networks
representing 30%. Latam will absorb half of the investments,
followed by Italy with 18% and Iberia with 11%.  The plan includes
asset rotation for EUR5 billion (cash flow neutral over the
period) and assumes a gradual increase of the dividend pay-out to
65% in 2018 from 50% in 2015.

Management expects the current business plan to generate lower net
free cash flows compared with the previous plan.  However, Fitch
acknowledges that this is partly due to the debt reduction the
group already achieved in 2014 and views positively Enel's
strategy to invest in multiple small projects, which provides the
group with significant financial flexibility, reduces costs
overrun risk and accelerates the execution period.  Moreover, the
capex is related for 90% to regulated and quasi-regulated
activities (also through power purchase agreements), thus reducing
the overall exposure of the company's EBITDA to the pure merchant
business to around 25% (from 30% in 2014).

Debt Reduction in 2014

In 2014 the group's net debt (including equity credit) reduced by
almost EUR5.5 billion according to Fitch's definition (to EUR43.5
billion from EUR49 billion in 2013), taking into account the debt
of assets held for sale (Slovenske Elektrarne).  Cash flow
benefited in 2014 from net equity proceeds of EUR1.9 billion, the
reduction of tariff deficit receivables of EUR2.0 billion and an
increase in the equity credit component by EUR0.8 billion, due to
the January 2014 hybrid issuance.

FFO net adjusted leverage decreased to 3.9x in 2014 from 4.8x in
2013, comfortably positioned within the rating guidelines.  More
importantly Fitch notes that Enel has maintained broadly stable
leverage during the past few years, despite the unfavorable
regulatory and market environment in its main reference markets.

Regulated Business Stable in Spain, Lower Visibility in Italy
The current regulatory period for electricity distribution in
Italy will end in 2015.  Fitch expects the broad framework to
remain in place.  However, the (real pre-tax) weighted average
cost of capital considered to remunerate the regulatory asset base
should be lower due to the update of the risk-free rate used in
the formula.  This could trigger a significant reduction of
revenues and margins in 2016.

After successfully restraining from tariff deficits in 2014, the
electricity market in Spain should have limited need for
substantive regulatory change.  This should result in improved
sustainability and an overall reduction in the regulatory and
political risk.  However, Fitch does not consider this improving
scenario to be immune to shocks or volatility, especially as
national elections are scheduled for November 2015.

Several royal decree drafts are expected to be released shortly
albeit with limited impact for Endesa's earnings.  Fitch expects
that the current drafts on non-mainland generation and remaining
electricity distribution parameters will have a small impact on
EBITDA as provisions have been prudently pre-booked for the former
and a close-to-final transitory remuneration has already been
applied to the second.  The current draft on environmental
investment subsidies for domestic coal plants has no impact due to
close to zero contribution of those plants under current and
expected market and regulatory conditions.  Finally, Fitch expects
weaker spreads for liberalized business, including lower capacity
payments for 2015-2019.

Electricity Market Stabilization

Electricity demand in Italy is showing the first signs of
stabilization (stable year-on-year demand in the first four months
of 2015), after reductions for three consecutive years.  Fitch
expects demand to be sluggish in the next few years.  The group's
generation activity is still suffering from the system's heavy
overcapacity and the roll-off of power price hedges.  Enel is
shutting down 13.5GW of thermoelectric capacity in Italy.  Supply
activity is reporting healthy growth (EBITDA of EUR1.1 billion in
2014, +25% on 2013) benefiting from the progressive switch to the
free market.

Spanish electricity demand is showing signs of recovery following
improvement in the economy (+1.0% adjusted year-on-year demand in
the first four months of 2015), after reductions for five
consecutive years (2014:-0.2%).  Fitch expects limited demand
growth in 2015 of around 1% compared with an expected increase in
GDP of 2.5%.  In addition, energy prices increased in 1Q15 (from
24EUR/MWh in 1Q14 to 47 EUR/MWh), reflecting a return to
normalized weather patterns and stabilizing commodity prices.

Credit Ratios Commensurate with Rating

Fitch expects the group's main credit ratios to remain in line
with the rating guidelines over the business plan period.  Fitch
is factoring in some conservative elements mainly related to the
achievable level of operational efficiencies, the regulatory
determination in Italy and the evolution of margins in Spain and
Latam.  In this scenario, Fitch estimates that FFO net adjusted
leverage would average 4.0x for 2015-19, with FFO interest
coverage of 4.4x.

Latam Expected to Grow

Enel has increased its focus on Latam in the past few years,
targeting development of operating activities and a simplification
of the group structure.  In 2014 Endesa sold Enersis (parent
company for operations in Latin America, BBB+/Stable) to Enel.
Enersis and its subsidiaries, Endesa Chile and Chilectra, are
currently assessing a corporate reorganization aimed at separating
power generation and distribution in Chile from those in other
countries of Latin America.  Latam is expected to attract the main
part of the investment in the context of asset rotation (mainly
through minority acquisitions).

Historically, Enersis' cash generation has been almost evenly
split between generation and distribution activities.  Fitch deems
the operating and legal environment is overall supportive in all
countries in which Enersis operates, with the exception of
Argentina.  Leverage at Enersis' level is lower than Enel's
consolidated one (Adjusted Net Debt to EBITDAR for Enersis is
lower than 1.0x in FY14 compared to 3.0x for Enel).  Fitch expects
the group can achieve sustained growth in this area, mainly on the
back of increased production and electricity consumption growth.

Unchanged Linkage with Endesa

Endesa's reorganization and the sale of a 21.9% Endesa's stake in
a public offering in 2014 did not impact its IDR.  This is due to
our continued view of its strong legal and operational links with
its parent Enel, despite Endesa's weakened standalone credit
metrics and geographic concentration in Spain.

Endesa's IDR is aligned with Enel's, reflecting our assessment of
their links as strong according to our 'Parent and Subsidiary
Rating Linkage' methodology.  Enel's 70.1% ownership, effective
control of Endesa's board of directors and importantly,
centralized funding and strategic decision-making are key elements
in this assessment.

KEY ASSUMPTIONS

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

   -- A reduction of EBITDA of Italian distribution activity
      (EUR4 billion in FY2014) in 2016 to reflect WACC around 5%
     in the new regulatory period.

   -- A haircut of around 20% to the operating costs efficiencies
      expected by the management.

   -- Mid-single digit annual growth for Latam (EBITDA of EUR3.1
      billion in FY2014) and Renewables (based on recurring
      EBITDA of EUR1.8 billion in FY2014).

   -- A decrease of the tax rate to consider the recent
      cancellation of the Robin Hood Tax in Italy.

   -- Capital expenditure of EUR34 billion across the business
      plan.

   -- Dividends pay-out rising from 50% in 2015 to 65% in 2018.

   -- Asset rotation program resulting in a net outflow for the
      group (although concentrated in the later years of the
      business plan).

RATING SENSITIVITIES

Positive: future developments that may potentially lead to
positive rating action include:

   -- FFO net adjusted leverage below 3.5x and FFO interest
      coverage above 4.5x on a sustained basis.

   -- An improvement in business risk profile, for example a
      steady increase in contribution of regulated and quasi-
      regulated activities where Fitch do not see significant
      regulatory or political risk.

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

   -- An increase in FFO net adjusted leverage above 4.5x and FFO
      interest coverage below 3.7x over a sustained period.
   -- Adverse regulatory or fiscal changes affecting the
      predictability of cash flows.
   -- A substantial increase of operations in emerging markets
      with a higher business risk in total EBITDA could lead us
      to tighten the ratio guideline for the rating.

LIQUIDITY

Enel's liquidity is healthy.  At March 2015 it had readily
available cash of around EUR10.1 billion with long term undrawn
committed credit lines of EUR13.2 billion.  This compares
comfortably with debt maturities of EUR5.4 billion for the
remainder of 2015 and EUR5.6 billion for 2016.  Fitch notes that
the group benefits from continuous access to capital markets and
strong banking relationships.

KEY RATING DRIVERS: ENDESA

Endesa, S.A.'s IDR is aligned with Enel's, reflecting our
assessment of the operational and legal links between the
companies as strong according to our 'Parent and Subsidiary Rating
Linkage' methodology.

RATING SENSITIVITIES: ENDESA

Positive: Future developments that may potentially lead to an
upgrade include:

   -- An upgrade of Enel's ratings.

Negative: Future developments that may potentially lead to a
downgrade include:

   -- A downgrade of Enel's ratings.

FULL LIST OF RATING ACTIONS

Enel S.p.A.
Long-term IDR affirmed at 'BBB+'; Outlook Stable
Short-term IDR affirmed at 'F2'
Senior unsecured rating affirmed at 'BBB+'
Subordinated notes rating affirmed at 'BBB-'

Enel Finance International NV
Senior unsecured rating affirmed at 'BBB+'
Commercial paper rating affirmed at 'F2'
Enel Investment Holding BV
Senior unsecured rating affirmed at 'BBB+'

Endesa, S.A.
Long-term IDR affirmed at 'BBB+'; Outlook Stable
Short-term IDR affirmed at 'F2'
Senior unsecured rating of 'BBB+'/'F2'
Preferred Stock rating of 'BB+'
International Endesa BV
Commercial paper rating affirmed at 'F2'


===========
T U R K E Y
===========


EREGLI DEMIR: S&P Raises CCR to 'BB-' on Strong Results
-------------------------------------------------------
Standard & Poor's Ratings Services said that it had raised its
long-term corporate credit rating on Turkish flat steel producer
Eregli Demir ve Celik Fabrikalari T.A.S. (Erdemir) to 'BB-' from
'B+'.  The outlook is stable.

The upgrade reflects Erdemir's strong operating performance and
deleveraging in 2014 and 2015.  Erdemir continues to benefit from
the Turkish flat steel industry's supportive supply and demand
balance, high capacity utilization rates, and a leading domestic
market position.  S&P now believes Erdemir can maintain a Standard
& Poor's-adjusted debt-to-EBITDA ratio of below 3x, even including
debt at Ataer, a special purpose vehicle owned by Oyak (Turkish
Armed Forces Assistance) pension fund.

S&P's assessment of Erdemir's business risk profile as "fair"
reflects the company's position as the only integrated flat steel
producer in Turkey, with high capacity utilization and above
average profitability.

S&P's assessment of Erdemir's financial risk profile as
"significant" reflects S&P's estimate of its ratio of adjusted
debt to EBITDA at less than 3x, when factoring in the debt at
holding company Ataer.  S&P also takes into account the high
volatility of Erdemir's profits and its leverage metrics, as the
wide swings between 2009 and 2012 illustrate.

The stable outlook reflects S&P's expectation that Erdemir will
continue to perform above the industry average, supported by its
strong domestic market position, and that its Standard & Poor's-
adjusted debt-to-EBITDA ratio will remain below 3x, FFO-to-debt at
above 30%, including special purpose vehicle Ataer's debt, and
that it will generate strong positive free operating cash flow
(FOCF).

S&P could upgrade Erdemir if its liquidity strengthened to
"adequate" according to S&P's criteria.  For an upgrade, S&P also
anticipates that Erdemir would maintain its strong competitive
market position in Turkey.

S&P could lower the rating if credit metrics weaken, such that
debt-to-EBITDA falls below 3x and FFO-to-debt below 30%, or if
FOCF turned negative.  This could be driven by, for example, a
weakening of market conditions or Erdemir's market position, or an
increase in shareholder distributions.



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


UKREXIMBANK: Reaches Preliminary Debt Deal with Creditors
---------------------------------------------------------
Natasha Doff and Marton Eder at Bloomberg News report that State
Export-Import Bank of Ukraine, known as Ukreximbank, reached a
deal with a creditor group to change terms on almost US$1.5
billion of bonds amid a wider restructuring of the eastern
European nation's sovereign debt.

Ukreximbank said holders of close to 30% of the principal of its
2015, 2016 and 2018 bonds are in favor of the deal, which includes
seven-year maturity extensions, Bloomberg relates.  According to
Bloomberg, a statement on the bank's website said the agreement
also offers no writedowns to principal holdings and raises coupon
payments.

The deal represents the first stage of a US$23 billion
restructuring that Ukraine wants to complete in time for an
International Monetary Fund review next month as it seeks to get
the next slice of a US$17.5 billion loan, Bloomberg notes.  The
government has insisted that a deal with sovereign creditors must
include a principal writedown, while a group of investors led by
Franklin Templeton has said IMF targets can be reached without a
so-called haircut, Bloomberg relays.

Ukreximbank is one of three state-owned companies, including AT
Oschadbank and Ukrainian Railways, whose creditors are receiving
preferential treatment relative to the sovereign in the nation's
debt restructuring because they don't have government guarantees,
Bloomberg discloses.  For that reason, their bonds will only be
used to meet the first of three IMF-mandated targets, Bloomberg
states.

"The results of the negotiations are fully in line with the
objectives of the IMF supported program," Bloomberg quotes the
Finance Ministry as syaing in an e-mailed statement.  The ministry
"underlines that the sovereign debt restructuring will also need
to reduce debt levels and debt service to meet the three IMF-
agreed targets."

                   Early Debt Restructuring

According to Reuters' Richard Balmforth and Natalia Zinets,
Ukraine on May 26 expressed confidence it would complete a debt
restructuring to clear the way for fresh IMF aid next month after
state-run Ukreximbank tied up a deal with a bondholders' committee
to extend maturities on US$1.5 billion of Eurobonds.

Near-bankrupt Ukraine is holding talks to restructure sovereign
and state-guaranteed debt to plug a US$15.3 billion funding gap
required under an International Monetary Fund-backed US$40 billion
bailout program, Reuters discloses.

Negotiations have soured with a creditors committee representing
about US$9 billion of debt repeating objections to any writedown
on the face value of the bonds and Kiev accusing bondholders of
being "unscrupulous" and lacking good faith, Reuters relates.

But the announcement that Ukreximbank had become the first debt-
owing entity to reach a preliminary agreement with bondholders
brought a significant change of mood within the Kiev government,
Reuters states.

Welcoming the "successful" conclusion of negotiations on
Ukreximbank's 2015, 2016 and 2018 bonds, the finance ministry, as
cited by Reuters, said: "The Ministry aims to complete the debt
restructuring operation by the first review of the IMF-supported
program scheduled for June in order to provide support for the
disbursement of the second tranche."

The central bank says the second tranche of credit under the IMF's
US$17.5 billion extended fund facility amounts to around US$2.6
billion, Reuters notes.

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
===========================


E-QAS TRAINING: Faces Liquidation After Failing to Find Funds
-------------------------------------------------------------
Lincolnshire Echo reports that e-QAS Training, a training company
in Lincoln, is facing liquidation after failing to find funds to
keep up with demand.

e-QAS Training, which offers Pitman courses, national careers
advice and traineeships, could announce it is winding-up with its
training centre on Silver Street already shut down, according to
Lincolnshire Echo.

Part funded by the European Union, the business currently has
offices in Lincoln and Boston, as well as Peterborough and Kings
Lynn, the report relates.

Proposed liquidators, Poppleton and Appleby, will meet with e-QAS
representatives on Tuesday to discuss the company's finances, the
report notes.

The report notes that Andrew Turpin, who is set to handle the case
for Poppleton and Appleby, said: "The business is taking advice
with a view to going into liquidation because of financial
restrictions.  The demand is there but the funds are just not
there to provide the services."

The Echo was unable to contact anyone from e-QAS Training.


KEYDATA INVESTMENT: FCA Imposes Fine on Former CEO Over Collapse
----------------------------------------------------------------
Emma Dunkley at The Financial Times reports that Stewart Ford, the
former boss of failed "death bond" firm Keydata has hit back at
plans for a record GBP75 million fine, branding it as a "stitch-
up" as the regulator clamps down on individuals involved in one of
the UK's biggest investment scandals.

The Financial Conduct Authority said on May 26 it has decided to
fine Stewart Ford, the former chief executive, and levy personal
penalties of GBP4 million and GBP200,000 respectively against
senior executives Mark Owen and Peter Johnson, the FT relates.

The collapse six years ago of Keydata, which sold GBP470 million
worth of financial products to 37,000 customers, forced
significant changes in the way the UK pays for investor
compensation when financial firms fail, the FT notes.  The FCA
found Keydata mis-sold thousands of customers investment products
based on second-hand life insurance policies bought from elderly
citizens in the US, the FT discloses.

Once the FCA flagged that the products were ineligible for
inclusion within Isas, Keydata was put into administration because
of concerns the firm would not be able to pay the resulting tax
bill, the FT says.

The Financial Services Compensation Scheme, which protects UK
investors, has so far paid out GBP330 million in connection with
the collapse, the FT notes.

Michael Cotter, of law firm Regulatory Legal, as cited by the FT,
said that the regulator's move to fine Mr. Ford and the other two
executives is part of a broader move to hold financial executives
accountable for failures on their watch.

But Mr. Ford has criticized the way the regulator has dealt with
his case as a "classic regulatory stitch-up", the FT notes.

"The past six years have been a nightmare for myself, my family
and the former employees of Keydata," the FT quotes Mr. Ford as
saying in a written statement.  "We were tossed aside by a
regulator who was hell bent on destroying a successful and well
run business in order to justify its continued existence."

Mr. Ford said he intends to file a GBP650 million damages claim
against the FCA and PwC, the FT relays.  According to the FT, he
alleged that the firm, which served as the administrator for
Keydata's insolvency, provided a "dodgy dossier" that enabled the
regulator to force Keydata out of business.

Keydata Investment Services Ltd. designs, distributes and
administers structured investment products.  Keydata operates from
three locations, being London, Glasgow and Reading and
administers its own products as well as portfolios for third
parties.

Dan Schwarzmann and Mark Batten of PricewaterhouseCoopers LLP were
appointed joint administrators of Keydata on June 8, 2009.  The
appointment was made based on an application to court by the
Financial Services Authority on insolvency grounds.


                            *********

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

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

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


                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
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
202-362-8552.


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