TCREUR_Public/150618.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

            Thursday, June 18, 2015, Vol. 16, No. 119



OESTERREICHISCHE VOLKSBANKEN: Moody's Cuts Issuer Ratings to Caa1


WFS GLOBAL: Moody's Assigns '(P)B2' CFR, Outlook Stable


PROGROUP AG: Moody's Rates EUR400MM Senior Secured Notes 'B1'


GREECE: Default, Euro Exit Likely as Bailout Talks Stall
GREECE: S&P Lowers Counterparty Credit Ratings on 4 Banks to CCC


PAPERLINX: Enda Brophy Buys Irish Unit, 13 Jobs Axed
KOKS FINANCE: Moody's Assigns (P)B3 Rating to New US$350MM Notes
TURKIYE IS: Fitch Affirms 'BB+' Rating on Subordinated Notes


ATLANTES SME 5: Moody's Rates EUR35.6MM Class B Notes '(P)B1'
MILANO SERRAVALLE: Fitch Affirms 'BB+' Long-Term Debt Rating


SK SPICE: Moody's Assigns 'B2' CFR, Outlook Stable


PENTA CLO 2: Fitch Assigns 'B-sf' Rating to Class F Notes


FORNETTI ROMANIA: Set to Exit Insolvency in Next Eight Months


ASKO-LIFE LLC: Put Under Provisional Administration
PODDERZHKA IRKUTSK: Put Under Provisional Administration
SAMARA OBLAST: S&P Assigns 'BB' Long-Term Global Scale Rating
TIKHOOKEANSKIY VNESHTORGBANK: Provisional Administration Halted


FTPYME SABADELL 4: Fitch Affirms 'CCCsf' Rating on Class C Notes

U N I T E D   K I N G D O M

NORTHERN ROCK: Mortgage Portfolio Attracts Potential Buyers
OPTIMAL PAYMENTS: Moody's Assigns (P)Ba2 CFR; Outlook Stable
TEN ALPS: Bob Geldof Steps Down as Part of Turnaround Plan
VEDANTA RESOURCES: Moody's Says Cairn Merger is Credit Positive



OESTERREICHISCHE VOLKSBANKEN: Moody's Cuts Issuer Ratings to Caa1
Moody's Investors Service downgraded the long-term deposit,
senior unsecured debt and issuer ratings of Oesterreichische
Volksbanken AG (VBAG) and Investkredit Bank AG (Investkredit;
assumed by VBAG in September 2012) to Caa1 from B2. This
concludes the review for downgrade on VBAG, which was initiated
on October 30, 2014 and extended on February 12, 2015 and also
reflects the implementation of the rating agency's new bank
rating methodology (published on March 16, 2015).

In light of the new bank rating methodology, the actions
incorporate the following considerations (1) the "Moderate+"
macro profile applicable to VBAG, which reflects that its asset
base is mostly based outside of Austria (Aaa stable); (2) a
reassessment of VBAG's weak financial profile as a wind-down
entity with higher risk assets, a diminishing earnings base and
low capitalization; (3) the protection offered to creditors more
senior in the creditor hierarchy, as captured by Moody's Advanced
Loss-Given-Failure (LGF) liability analysis; and (4) the reduced
likelihood of support from the Austrian government in the event
of need.

Also reflecting these factors, Moody's has confirmed VBAG's
subordinated debt ratings at Ca and its standalone baseline
credit assessment (BCA) at caa3. The bank's Not-Prime short-term
debt and deposit ratings are unaffected.

Furthermore, Investkredit's subordinated debt ratings were
confirmed at Ca while VBAG's hybrid capital instruments -- or
other issuing entities of the group -- continue to be rated on an
expected loss basis and were downgraded to C(hyb) from Ca(hyb)
reflecting an increase in expected loss severity.

Moody's has assigned Counterparty Risk (CR) Assessments of
B3(cr)/Not-Prime(cr) to VBAG, in line with the new methodology.

VBAG's long-term senior debt and deposit ratings carry a negative
outlook. Moody's has withdrawn the outlooks on the bank's
subordinated and hybrid capital instruments for its own business
reasons. Please refer to Moody's Investors Service's "Policy for
Withdrawal of Credit Ratings".

The new methodology includes a number of elements that Moody's
has developed to help accurately predict bank failures and
determine how each creditor class is likely to be treated when a
bank fails and enters resolution. These new elements capture
insights gained from the crisis and the fundamental shift in the
banking industry and its regulation.


Following the decision to break-up and wind-down VBAG, the bank's
macro profile derives from its residual exposures. Given its
asset concentrations in several CEE countries, VBAG's individual
macro profile is "Moderate+", significantly lower than the macro
profile for Austria, which is "Very Strong-".


In confirming the caa3 BCA, Moody's has based its reassessment on
the understanding that during its wind-down, VBAG will benefit
from a comfortable and largely matched funding structure. At the
same time, solvency considerations still constrain the BCA. After
failing the ECB's Comprehensive Assessment by a substantial
margin and to prevent default or regulatory intervention, VBAG
will now transfer the majority of its performing assets to other
parts of the Volksbanken sector while retaining its higher risk
assets and relinquishing its banking license. The opening balance
sheet of the wind-down entity as of 1 January 2015 reports total
assets of EUR7.1 billion and a slim capital cushion of EUR 30
million of shareholder's equity. Although exempt from banking
regulatory requirements going forward, thereby reducing the risk
of insolvency, the rating agency believes that VBAG is exposed to
a considerable portion of non-performing assets and its thin
capital base cannot sufficiently absorb unexpected losses.
Moody's understands that the contemplated wind-down plan and
break-up will technically occur by July 2015 with retroactive
effect to the beginning of the year.


Under BaSAG, the Austrian implementation of the EU Bank
Resolution and Recovery Directive (BRRD), wind-down entities such
as VBAG are included in what Moody's considers to be an
Operational Resolution Regime. This enables the application of
resolution tools to wind-down entities. Therefore, Moody's is
applying its new Advanced LGF analysis, which has a positive
effect on VBAG's debt and deposit ratings.

For VBAG, the LGF analysis relied on the bank's liability
structure as published in its opening balance sheet. The analysis
indicates a very low loss-given-failure for deposits and senior
unsecured debt, leading to a two-notch uplift from its caa3
Adjusted BCA. The assessment is supported by the wind-down
entity's substantial volume of senior unsecured debt including
promissory notes which Moody's considers to rank pari passu with
senior unsecured instruments.

For subordinated debt issued by VBAG, the LGF analysis indicates
a high loss-given-failure for this junior debt class, leading to
a one notch reduction from the bank's caa3 Adjusted BCA.


Moody's says that the introduction of the BRRD has demonstrated a
reduction in the willingness of EU governments to bail-out banks.
VBAG is subject to the BRRD and BaSAG. Moody's thus takes the
view that the likelihood of support from the Austrian government
is constrained and attributes a very low willingness to support,
in case of need, given VBAG's wind-down status and significantly
reduced size and contagion risks. Consequently government support
for VBAG's debt and deposit instruments has been removed, leading
to an overall downgrade of these ratings to Caa1 from B2.

The negative outlook reflects potential downward pressure on
VBAG's BCA because of the very high uncertainties and execution
risks associated with whether VBAG can wind itself down according
to plan, in particular regarding expected proceeds from the asset
disposals and implications for its capital levels. This may
result from an adverse change in the European and Eastern
European economic environment during the multi-year wind-down
horizon, but could also be caused by lower-than-expected asset-
value realisations absence any negative external developments.

Material changes in the liability structure that might occur
during VBAG's unwinding mean that the negative outlook also
reflects a potential reduction in rating uplift from the LGF

As part of the actions, Moody's has assigned a CR Assessment of
B3(cr)/Not-Prime(cr) to VBAG. CR Assessments are opinions of how
counterparty obligations are likely to be treated if a bank
fails, and are distinct from debt and deposit ratings in that
they (1) consider only the risk of default rather than expected
loss and (2) apply to counterparty obligations and contractual
commitments rather than debt or deposit instruments. The CR
Assessment is an opinion of the counterparty risk related to a
bank's covered bonds, contractual performance obligations
(servicing), derivatives (e.g., swaps), letters of credit,
guarantees and liquidity facilities.

The CR Assessment takes into account the issuer's standalone
strength as well as the likelihood of affiliate and government
support in the event of need, reflecting the anticipated
seniority of these obligations in the liabilities hierarchy. The
CR Assessment also incorporates other steps authorities can take
to preserve the key operations of a bank should it enter a

The starting point for the CR Assessment of VBAG is the bank's
caa3 Adjusted BCA, to which Moody's then applies an Advanced LGF
approach that takes into account the level of subordination in
the bank's liability structure, and incorporates the same support
assumptions as applied to deposit and senior unsecured debt
ratings. As a result, the CR Assessment for VBAG is one notch
higher than its deposit ratings, reflecting Moody's view that
authorities are likely to honor the operating obligations the CR
Assessment refers to in order to preserve a bank's critical
functions and reduce potential for contagion.

The negative outlook implies no upward rating pressure on VBAG's
long-term ratings.

However, upward rating pressure on VBAG's long-term ratings could
result from substantial improvement in the bank's standalone
creditworthiness that would prompt an upward adjustment of its
standalone BCA and/or positive effects from Moody's LGF analysis.

Upward pressure on VBAG's caa3 BCA could arise from a substantial
capital increase and/or a successful wind-down and de-risking of
its balance sheet, which would also support VBAG's aim of
preserving an adequate liquidity position. Upward pressure on the
bank's debt and deposit ratings may further arise because of
positive effects from the LGF analysis, which currently provides
two notches of rating uplift to the bank's debt and deposit
ratings; this would require a relative increase in subordinated

Downward rating pressure on VBAG's long-term ratings could result
from a deterioration in the bank's standalone creditworthiness
and/or negative effects from the LGF analysis.

Downward pressure on the BCA could develop if the proposed
restructuring proves insufficient to indicate that senior
creditors will be repaid in full and on time and/or if the
Austrian Financial Market Authority (FMA) steps in to initiate
resolution measures.

Downward pressure on VBAG's long-term ratings could also result
from negative effects from the LGF analysis, in particular if (1)
upon the execution of the break-up of VBAG by July 2015, the
bank's liability structure is materially different to the opening
balance sheet implementation; and (2) a significant reduction in
the volume of subordinated instruments occurs.

The following ratings of VBAG were downgraded:

  -- Long-term deposit, senior unsecured debt and issuer ratings
     to Caa1 from B2, negative outlook

  -- Preferred Stock Non-cumulative to C(hyb) from Ca(hyb),
     outlook withdrawn

  -- Junior subordinated debt (Upper Tier 2) to C(hyb) from
     Ca(hyb), outlook withdrawn

The following ratings or rating inputs of VBAG were confirmed:

  -- Subordinated and senior subordinated debt ratings at Ca,
     outlook withdrawn

  -- BCA and adjusted BCA at caa3

The following rating assessments of VBAG were assigned:

  -- Long-term Counterparty Risk Assessment of B3(cr)

  -- Short-term Counterparty Risk Assessment of Not-Prime(cr)

The following ratings of VBAG were unaffected:

  -- Short-term debt and deposit rating at Not-Prime

The following ratings of Investkredit were downgraded:

  -- BACKED long-term senior unsecured debt ratings to Caa1 from
     B2, negative outlook

  -- BACKED junior subordinated debt (Upper Tier 2) to C(hyb)
     from Ca(hyb), outlook withdrawn

The following rating of Investkredit was confirmed:

  -- BACKED subordinated debt ratings at Ca, outlook withdrawn

The following rating of OEVAG Finance (Jersey) Limited was

  -- BACKED Preferred Stock Non-cumulative to C(hyb) from
     Ca(hyb), outlook withdrawn

The following rating of Investkredit Funding Ltd was downgraded:

  -- Preferred Stock Non-cumulative to C(hyb) from Ca(hyb),
     outlook withdrawn

The principal methodology used in these ratings was Banks
published in March 2015.


WFS GLOBAL: Moody's Assigns '(P)B2' CFR, Outlook Stable
Moody's Investors Service assigned a (P)B2 corporate family
rating to WFS Global Holding SAS, the top entity of the WFS
borrowing group. Concurrently, Moody's has assigned a provisional
(P)B2 rating to WFS's EUR225 million senior secured notes due
2022. The outlook on all ratings is stable.

The proceeds from the notes are expected to be used to support
the acquisition of WFS by Platinum Equity from its current owner,
LBO France, accompanied by a refinancing of the existing debt.

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

The (P)B2 CFR assigned to WFS reflects (i) the exposure of WFS'
core cargo business to economic and international trade
cyclicality; (ii) WFS's airline customer base leading to price
pressure and consolidation risk; (iii) limited geographical
diversification, with France contributing c. 50% of 2014 sales;
and (iv) high financial leverage at c. 4.4x (Moody's adjusted)
proforma for the transaction. Positively, the ratings assessment
reflects WFS's (i) strong position in cargo business as the
number one independent global player complemented by its trucking
network across Europe; (ii) niche position in baggage handling;
(iii) ability to benefit from positive dynamics expected in cargo
volumes; and (iv) relatively stable client base offsetting
customer concentration.

WFS' primary focus is cargo handling, which contributed 63% of
its sales and 67% of EBITDA for financial year ended December
2014 (FY2014). WFS' positioning in cargo handling is supported by
the extensive trucking services networks in Europe, operated by
the company, and a significant warehouse footprint. The company
is also a specialist player in ground handling, with value-added
baggage handling operations in Paris CDG and Hong Kong
International airports. The company also developed capabilities
in premium services, such as VIP lounges in Singapore and Hong
Kong's airports (and recently Jordan) and diversified into cruise
and ports related activities.

The company's revenue is skewed towards Europe, in particular
towards France, with c. 12% of 2014 revenue coming from its major
customer, Air France.

WFS is exposed to the airline industry, which continues to face a
lot of near-term challenges, leading to ongoing restructurings,
consolidation and price pressure on suppliers. However, the long-
term trend to outsource airport services, driven by deregulation
of airports as well as airlines' focus on core business and cost
reduction, provides support to WFS' business profile. Although
cargo volume's KPI, Freight Tonne Kilometers (FTKs), tends to be
more volatile than ground handling's Revenue Passenger Kilometers
(RPKs), it follows slightly different dynamics, dependent on
world trade cycles, and achieves a quicker recovery in the case
of an economy rebound.

WFS has demonstrated resilient performance during the past few
years despite the challenging conditions in the industry. In 2014
growth in the top line resumed for the first time since 2010
supported by a rebound in volumes in the cargo industry. Revenue
(excluding an acquisition in Brazil) increased by 11% year-on-
year supported by strong contract wins in cargo in Europe, the
company's core business. The pressure on margins during the last
few years, driven by ground handling division, reversed in 2014
driven by the benefits of economies of scale in cargo.

Moody's expects to see a gradual de-leveraging through EBITDA
growth, as a result of the completed restructuring in the US and
the rest of Europe, as well as from the combination of growth in
cargo volumes observed so far this year.

The liquidity of WFS pro-forma for the proposed transaction is
adequate, supported by approximately EUR10 million of cash pro
forma for the transaction. The rating also incorporates an
expectation that EUR50 million revolving credit facility (RCF)
will be available to the company, out of which approximately
EUR15 million is utilized for letters of credit. The RCF is
expected to be available for working capital and general
corporate purposes, including permitted acquisitions. The
springing net leverage financial covenant under the revolving
credit facility is expected to be set with significant headroom.

The (P)B2 rating on the senior secured notes, in line with CFR,
reflects their pari-passu ranking with other operating companies'
liabilities as they benefit from subsidiaries guarantees. The
notes share security and guarantees with the RCF however rank
behind the RCF due to contractual subordination via the
intercreditor agreement in an enforcement. The ratings also
incorporate Moody's understanding that the shareholder funding
into the restricted group will be wholly via common equity.

The stable outlook reflects Moody's expectation of a recovery in
the cargo market leading to a gradual deleveraging of the
business. The outlook does not take into account any material
debt funded acquisition nor any potential shareholder friendly
actions, including a repayment of the vendor loan outside of the
restricted group.

Positive pressure on the ratings could arise if WFS's credit
metrics were to improve as a result of a stronger-than-expected
operational performance, leading to (i) debt/EBITDA ratio
sustainably below 3.5x, (ii) EBITA / interest above 1.5x and
(iii) continuing positive free cash flow generation. Downward
pressure could occur as a result of: (i) the company's
debt/EBITDA ratio increasing above 4.5x; (ii) EBITA/interest
ratio falling materially below 1.5x or (iii) free cash flow
turning negative leading to a weakening liquidity profile.

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.

WFS is a global aviation services company principally focused on
cargo handling and ground handling. As of March 31, 2015 WFS
operated at 131 airports in 20 countries (principally in Europe)
and served more than 185 airlines and 9 airport customers
worldwide. The company generated EUR597 million net sales (under
IFRS) in FY 2014.


PROGROUP AG: Moody's Rates EUR400MM Senior Secured Notes 'B1'
Moody's Investors Service assigned a definitive B1 (LGD 3) rating
to the EUR400 million equivalent Senior Secured Notes, which have
been issued by Progroup AG and contain a fixed rate and a
floating rate tranche. Moody's also assigned a definitive Caa1
(LGD 6) rating to the EUR125 million PIK Toggle Notes issued by
JH-Holding Finance SA. The B2 Corporate Family Rating (CFR) and
B2-PD Probability of Default Rating (PDR) of JH-Holding GmbH, the
ultimate parent company of Progroup as well as the stable outlook
remain unchanged.

Moody's definitive ratings are in line with the provisional
ratings assigned on April 20, 2015.

Progroup's B2 CFR is supported by the group's business model that
focuses on small batch sizes delivered to small and medium size
converting customers in a highly automated production process,
which allows it to successfully compete in a fragmented market.
In addition, the group benefits from a cost efficient and modern
asset base. We believe that end market fundamentals are positive
and should support continued moderate growth over the medium to
long term, as demand for paper-based packaging benefits from
trends including the rise in online sales, substitution of other
packaging materials with paper and higher living standards and
consumer spending in particular in Central and Eastern Europe.
These factors have contributed to high profit levels, as
evidenced by its EBITDA margin around 19% in 2014 (as adjusted by

The rating also reflects its fairly small scale with reported
EBITDA of EUR125 million in 2014 when compared to peers such as
Smurfit Kappa and DS Smith but compensated by the differentiation
in customer segmentation that allow for leading market shares in
its niche of mostly regional core markets. The B2 rating also
reflects the leveraged capital structure with debt/EBITDA as
adjusted by Moody's of around 5x pro forma for the refinancing.
Potentially more challenging market conditions over the next two
years and costs related to the roll-out of a new corrugated board
plant, albeit significantly lower compared to prior expansion
programs, will in our view limit the company's potential for
meaningful deleveraging in the short to medium term. More
positively, however, we note that Progroup's performance has been
good year-to-date and ahead of the prior year, helped by volume
growth and a positive pricing environment for recycled
containerboard (testliner & fluting) and corrugated board as well
as a higher integration between containerboard and corrugated
board business within the group. The fragmented market
environment has historically made it challenging to sufficiently
manage supply to demand and we caution that new containerboard
capacity scheduled to ramp-up over the next 18-24 months may have
a negative impact on pricing levels in the industry.

The B1 rating on the Senior Secured Notes is one notch above the
Corporate Family Rating. This reflects the limited amount of
priority debt ranking ahead while the PIK Toggle note provide
sufficient first loss cushion in a default scenario. While the
Senior Secured Notes and the RCF share the same collateral
package, lenders under the RCF have priority access to any
enforcement proceeds in a default scenario. The Caa1 rating on
the PIK toggle notes reflect their junior ranking in the capital

Following the refinancing, Progroup's liquidity profile is
adequate with internal cash sources being sufficient to cover
short term cash outflows. Moody's notes positively that following
the refinancing, Progroup will not have any material debt
maturities before 2021, when the RCF will mature.

Positive rating pressure could build if Progroup was able to
sustain profitability margins in the high-to-mid teen percentages
in terms of EBITDA margin as adjusted by Moody's. In terms of
leverage, we would expect the group's debt/EBITDA as adjusted by
Moody's to decline towards 4.5x. A rating upgrade would also
require a well-managed liquidity profile. Moody's could consider
downgrading Progroup's ratings if the group's profitability were
to come under pressure, resulting in EBITDA margins declining
below the mid teen percentages with debt/EBITDA being above 5.5x
for an extended period of time. Also, a deterioration in
liquidity could result in rating pressure building.

The principal methodology used in these ratings was Global Paper
and Forest Products Industry published in October 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.

Progroup AG is a leading European producer of containerboard and
corrugated board focusing on processing of standardized small
batch series for small- and medium-sized costumers in a broad
range of end-markets. The group generated sales of EUR661 million
and reported EBITDA of EUR125 million as of 2014 (19% reported
EBITDA margin). Headquartered in Germany, the company employs 853
employees and has 9 production plants across 5 countries.


GREECE: Default, Euro Exit Likely as Bailout Talks Stall
BBC News reports that Greece's central bank has warned for the
first time that the country could be on a "painful course" to
default and exit from both the eurozone and the EU.

It comes as the Greek government and its international creditors
blamed each other for failing to reach a deal over economic
reforms, BBC relays.

That failure is holding up the release of EUR7.2 billion (GBP5.2
billion) in bailout funds, BBC notes.

The central bank said about EUR30 billion was withdrawn from
Greek bank deposits between October and April, BBC relates.

The central bank also warned the country's economic slowdown
would accelerate without a deal, BBC states.

"Failure to reach an agreement would . . . mark the beginning of
a painful course that would lead initially to a Greek default and
ultimately to the country's exit from the euro area and, most
likely, from the European Union," BBC quotes the Bank of Greece
as saying in a report.

"Striking an agreement with our partners is a historical
imperative that we cannot afford to ignore."

                 Tsipras to Assume Responsibility

Meanwhile, Bloomberg News' Marcus Bensasson and Nikos Chrysoloras
report that Greek Prime Minister Alexis Tsipras said he's ready
to assume responsibility for the consequences of rejecting an
unfair deal with creditors.

In a sign that he's being taken at his word, officials from the
Netherlands, Portugal and Germany said they were bracing for a
breakdown in talks that could roil the currency bloc, Bloomberg

With a viable solution, "the Greek government recently elected by
the Greek people will bear the cost of carrying through,"
Bloomberg quotes Mr. Tsipras as saying in Athens on June 17.
Without one, "we will assume the responsibility to say 'the great
no' to a continuation of the catastrophic policies."

Talks between Greece and its creditors are stalled as euro-area
finance ministers prepare to meet in Luxembourg today, June 18,
Bloomberg notes.  The gathering has been billed as a last chance
to seal an agreement on as much as EUR7.2 billion (US$8.1
billion) in bailout aid, Bloomberg states.

German Finance Minister Wolfgang Schaeuble told a parliamentary
hearing in Berlin that his government is making contingency plans
in the event that Greece's euro-area-backed bailout expires
without an agreement or extension, Bloomberg relays.

Similar preparations were being carried out elsewhere, Bloomberg

GREECE: S&P Lowers Counterparty Credit Ratings on 4 Banks to CCC
Standard & Poor's Ratings Services said that it has lowered to
'CCC' from 'CCC+' its long-term counterparty credit ratings on
Greece-based Alpha Bank A.E. (Alpha), Eurobank Ergasias S.A.
(Eurobank), National Bank of Greece S.A. (NBG), and Piraeus Bank
S.A. (Piraeus), and removed these ratings from CreditWatch with
negative implications, where S&P initially placed them on Jan.
30, 2015.

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

The outlook is negative.

The downgrade reflects S&P's view that Greek banks will likely
default within the next 12 months in the absence of an agreement
between the Greek government and its official creditors while the
end of the extension of the current program is approaching.  In
this context, S&P sees increasing likelihood that capital
controls will be imposed to staunch further deposit outflows.

Greek banks are experiencing rising liquidity pressures.  Deposit
outflows, which started in late December 2014, have continued in
recent months.  Greek banks lost about EUR35 billion of deposits
or 20% of the total between end November 2014 and end April 2015.
S&P estimates that the outflow continued in May and accelerated
in early June 2015.  As such, S&P anticipates that Greek banks
will continue to increase their reliance on the Emergency
Liquidity Assistance (ELA) facilities provided by the Bank of
Greece to meet their refinancing needs.  At the end of April
2015, central bank funding amounted to about EUR113 billion,
amounting to over 60% of Greek GDP.

"In our view, the uncertainty around Greece's relations with its
creditors and its broader political stability is weighing on the
economy.  Even if an agreement with official creditors were to be
reached over the next fortnight, we do not expect that such an
agreement would cover Greece's debt service requirements beyond
September.  In our view, this implies that confidence and
investment activity will remain weak and growth prospects muted.
In this context, we expect the asset quality of Greek banks to
continue deteriorating.  We estimate that nonperforming assets
(NPAs), including restructured loans, represented an extremely
high 45% of gross loans at end-December 2014.  We forecast NPAs
and credit losses will continue increasing and asset recovery
will become more difficult.  We anticipate that earning prospects
will weaken as a result of an unfavorable economic environment,
persistently high funding costs, and very high credit losses,"
S&P said.

S&P's 'ccc-' stand-alone credit profiles (SACPs) of Alpha,
Eurobank, NBG, and Piraeus continue to reflect that, in the
absence of support from the European authorities, S&P believes
that a default of these Greek banks would be inevitable within
the next six months.

The negative outlook reflects the possibility that S&P could
lower the long-term ratings on the four Greek banks if S&P
anticipates that capital controls will be imposed, as this would
likely lead to a default under S&P's ratings definitions.

S&P could also lower the ratings if Greek banks lose access to
liquidity provided by the European liquidity support mechanisms,
or if S&P foresees such support being insufficient to meet the
four banks' financing needs.  Greek banks' ability to continue
accessing ELA facilities remains dependent on the European
Central Bank's governing council, which can restrict ELA
operations at any time if it considers that these operations
interfere with the objectives of the Eurosystem.

S&P could revise the outlook to stable if the political situation
in Greece improves and pressure on the banks' fragile financial
profile starts to ease, or if S&P thinks additional external
support is more certain.


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

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


PAPERLINX: Enda Brophy Buys Irish Unit, 13 Jobs Axed
Paul O'Donoghue at Irish Independent reports that the Irish arm
of international paper company Paperlinx has been sold off in a
move that will see 13 staff made redundant after the firm's UK
branch went into administration.

The Irish business has been acquired by former divisional
director Enda Brophy, Irish Independent relates.  Mr. Brophy now
owns 100% of the firm, which will be renamed Graphic & Paper
Merchants Ireland, Irish Independent notes.

The company employs 51 staff in the Republic and 14 in Northern
Ireland and had sales of around EUR35 million last year, Irish
Independent discloses.  Thirteen staff are to be made redundant
in the Republic as the company restructures, Irish Independent

The process to sell off Paperlinx's Irish arm started when its UK
business went into administration earlier this year, Irish
Independent recounts.

All but five of Paperlinx's 19 UK sites were immediately closed
by administrators and 693 of the business' 1200 staff were made
redundant, Irish Independent states.

Speaking to the Irish Independent, Mr. Brophy, as cited by Irish
Independent, said that the administration in the UK had a
significant knock-on effect in Ireland, saying: "A lot of global
suppliers decided not to trade with us due to credit terms after
it [the UK administration].

KOKS FINANCE: Moody's Assigns (P)B3 Rating to New US$350MM Notes
Moody's Investors Service assigned a provisional (P)B3 rating to
the proposed US$350 million senior unsecured notes to be issued
by KOKS Finance Limited, a special purpose vehicle incorporated
in Ireland as a private limited company, for the purpose of
financing a loan to JSC KOKS. The amount and terms of the notes
are subject to the prevailing market conditions during placement.

The proceeds from the issuance will be on-lent by KOKS Finance
Limited to KOKS. Therefore, the noteholders will be relying
solely on KOKS's credit quality to repay the debt. The loan will
be guaranteed by the main operating subsidiaries of KOKS:
Kombinat KMAruda, Butovskaya Mine, Tikhova Mine and Tulachermet
guaranteeing the loan on a joint and several basis.

On June 11, 2015, KOKS Finance Limited offered the holders of its
7.75% notes maturing on 23 June 2016 an exchange for a package of
new 10.75% notes, which will have a maturity of three and a half
years from the settlement date as well as a cash component, which
together with the new notes will represent 110.5% of the
aggregate principal amount of the existing notes (Exchange

The provisional (P)B3 rating and loss-given default assessment of
LGD4 primarily reflects the credit quality of the KOKS Group (B2)
and the subordination of the loans and consequently of the notes
to approximately RUR12 billion secured debt. More specifically,
the loans and notes will be senior unsecured obligations of KOKS
with upstream guarantees and thus rank pari passu with other
unsecured obligations of KOKS's main operating companies.

Moody's issues provisional ratings in advance of the final sale
of securities. Upon a conclusive review of the final
documentation, Moody's will endeavor to assign final ratings to
the securities. Final ratings may differ from provisional

In 2014, KOKS reported a significant improvement in
profitability, with reported EBITDA growing by 74% year-on-year
to RUB11.5 billion, benefitting from the ruble's depreciation by
42% against the US dollar in 2014. EBITDA margin rose to 24.3% in
2014 (the highest level since 2008), from 15.3% in 2013. 10%
revenue growth in 2014 was driven by pig iron sales volumes
growth, better product mix, higher coal extraction volumes from
the recently commissioned Butovskaya mine and a weaker rouble.
Moody's adjusted total debt increased by 39% in rouble terms as
75% of funded debt is US dollar-denominated. Leverage as measured
by Moody's-adjusted total debt/ EBITDA improved to 3.2x as of 31
December 2014 from 4.3x as of 31 December 2013.

The principal methodology used in this rating was Global Steel
Industry published in October 2012. Other methodologies used
include Loss Given Default for Speculative-Grade Non-Financial
Companies in the U.S., Canada and EMEA published in June 2009.

JSC KOKS is a small Russia-based producer of coking coal, coke,
iron ore and pig iron. In 2014, the company produced 1.75 million
tonnes of coking coal, 2.6 million tonnes of coke, 2.18 million
tonnes of iron ore concentrate and 2.18 million tonnes of pig
iron. The Group's reserves and resources of iron ore attributable
to Kombinat KMAruda and coking coal attributable to Butovskaya
Mine, Tikhova Mine and Uchastok Koksovy, measured as of 30
September 2010 according to the JORC Code, consisted of coking
coal proved and probable reserves of 94.2 million tonnes, coking
coal measured and indicated resources of 365.3 million tonnes,
iron ore proved and probable reserves of 284.7 million tonnes and
iron ore measured and indicated resources of 698.1 million
tonnes. In 2014, the company reported RUB47.2 billion (2013:
RUB43.0 billion) of revenue and RUB11.5 billion (2013: RUB6.6
billion) of EBITDA. KOKS is majority-owned by the Zubitsky
family, which holds an 86% stake in the company.

TURKIYE IS: Fitch Affirms 'BB+' Rating on Subordinated Notes
Fitch Ratings has affirmed the Long-term Issuer Default Ratings
(IDRs), Viability Ratings (VRs) and Support Ratings of Turkiye Is
Bankasi (Isbank), Akbank T.A.S. (Akbank) and Yapi ve Kredi
Bankasi (YKB). The Outlooks on the banks' Long-term IDRs are
Stable. The IDRs, Support Rating and National Rating of Turkiye
Garanti Bankasi (Garanti) have been maintained on Rating Watch
Positive (RWP), pending the increase in BBVA's ownership to a
controlling stake.

Isbank, Akbank and Garanti's 'BBB-' Long-term IDRs are driven by
their standalone creditworthiness, as reflected in their 'bbb-'
VRs, while that of YKB (BBB) is based on potential support from
UniCredit S.p.A. (BBB+/Stable), one of its two major

Fitch has also affirmed the Long-term IDRs of subsidiaries of
Isbank, Akbank and YKB, and maintained the Long-term IDRs of
Garanti's subsidiaries on RWP. These ratings are equalized with
those of their parent institutions.



The 'bbb-' VRs of all four banks continue to reflect their
reasonable financial metrics -- in terms of asset quality,
performance and capitalization -- underpinned by their strong
franchises. In addition, they reflect Fitch's base case
expectation of continued growth in Turkey, with GDP forecast to
rise by 3.2% and 3.8% in 2015 and 2016, respectively, and our
view that any moderate deterioration in the operating environment
will be manageable for the banks, given their sound financial

The banks' asset quality has historically outperformed (or in
YKB's case, been broadly in line with) the sector average. Non-
performing loans (NPLs, defined as loans overdue by 90 days)
remained low at between 1.6% and 3.3% of respective gross loans
at end-1Q15. In addition, performance ratios, although having
weakened in recent years, remain sound. The banks reported
returns on equity in the range of 10.7% to 14.8% in 2014,
notwithstanding the difficult operating environment, margin
pressure and the cumulative impact of regulation on

Loss absorption buffers at all four banks remain sound, despite
the gradual increase in leverage (from previously low levels) in
recent years. Their Fitch Core Capital (FCC)/weighted risks
ratios ranged from 10% to 13% at end-1Q15, and capital positions
are further supported by reasonable reserve coverage of impaired
loans and solid internal capital generation. Pre-impairment
profit ranged from 21% to 28% of the banks' equity bases in 2014,
indicating significant capacity to absorb unexpected losses
through income statements. Loan growth targets for 2015 are less
aggressive than in preceding years, and Fitch expects capital
ratios to moderate only slightly during the year (unless there is
a further marked depreciation of the Turkish lira).

Foreign currency (FC) denominated wholesale funding, attracted
mainly on international markets, has risen significantly at all
four banks since 2011 (equal to between 20% and 30% of non-equity
funding at end-1Q15). As a result, Fitch believes that the banks'
FC liquidity risks have increased, particularly given the sizable
short-term component of this funding. Fitch views this risk as
more moderate at YKB and Garanti, given their expected access to
FC from foreign shareholders in case of need, while Akbank's
short-term FC debt is somewhat higher than at peers.

At the same time, Fitch's base case remains that the banks will
continue to enjoy good market access. In addition, their short-
term FC liquidity positions are reasonable, with FC liabilities
due within a year broadly covered by available FC liquidity
(primarily, placements with the Turkish Central Bank under the
Reserve Option Mechanism and maturing currency swaps).
Consequently, the banks should be reasonably placed to cope with
a short-lived market closure. Nevertheless, a prolonged loss of
market access, combined with broader stress in Turkey's external
finances, could significantly strain FC liquidity positions.

The high level of long-term FC-denominated, largely corporate,
lending (between 30% and 40% of total portfolios at each of the
four banks) is a source of potential credit risk. Such loans
consist mainly of long-term exposures, often to unhedged or
weakly hedged borrowers. As many are among the banks' largest
loans, they also bring concentration risk. However, mitigating
these risks is the fact that such loans are generally to prime
corporates in Turkey with diversified businesses and revenues,
and any deterioration in these exposures is also likely to be
only gradual as they amortize slowly.

Exposure to the volatile Turkish market is a highly important
factor for the banks' ratings, and downside risks have moderately
increased. This follows the inconclusive parliamentary elections
in June that have given rise to near-term political uncertainty
and potential disruption to the economic policy framework. The
potential for slower economic growth, lira depreciation, higher
interest rates and weaker investor sentiment towards Turkey could
all weigh on banks' credit profiles. At the same time, any
deterioration in the operating environment is likely to be
moderate, in Fitch's view, and the four banks have sufficient
capital and liquidity buffers to absorb mild shocks (see 'Fitch:
Political Uncertainty Creates Risks for Turkish Banks', dated 12
June 2015 at


YKB's IDRs and National Rating are driven by potential support
from Unicredit, which via Unicredit Bank Austria (BBB+/Stable),
owns a 50% stake in YKB's holding company (which in turn holds a
82% stake in YKB). In Fitch's opinion, YKB is a strategically
important subsidiary for Unicredit, taking into account the
continued high strategic importance of Turkey and the Central and
Eastern Europe region for Unicredit. Hence Fitch notches YKB's
Long-term IDRs down once from those of Unicredit. The upgrade of
YKB's Short-term IDR to 'F2' from 'F3' reflects the available of
liquidity support from Unicredit.


Akbank, Garanti and Isbank's '3' Support Ratings and 'BB-'
Support Rating Floors (SRFs) are based on potential support from
the Turkish sovereign (BBB-/Stable), reflecting their systemic
importance. The three-notch difference between Turkey's sovereign
ratings and the SRFs reflects potential limitations on the
authorities' ability to provide FC support, given the banks'
growing and sizable FC wholesale funding and the sovereign's
moderate FC reserves.


The Long- and Short-term IDRs assigned to Akbank A.G.(AAG), Ak
Finansal Kiralama A.S. (Aklease), Is Finansal Kiralama A.S. (Is
Leasing), Is Faktoring A.S. (Is Factoring), Garanti Faktoring
A.S. (Garanti Factoring), Garanti Finansal Kiralama A.S. (Garanti
Leasing), Yapi Kredi Finansal Kiralama A.S. (YKL) and Yapi Kredi
Faktoring A.S. (YKF) and the Long-term National Rating of Is
Yatirim Menkul Degerler A.S. (Is Investment), are equalised with
those of their respective parents, reflecting Fitch's view that
they are core, highly integrated, subsidiaries. The upgrade of YK
and YKL's Short-term IDRs to 'F2' from 'F3' reflects the
available of liquidity support from their parent.



The VRs of all four banks are sensitive to a marked deterioration
in Turkey's economic performance and/or restricted access of the
banking sector to wholesale funding markets, potentially
resulting in significant deterioration in asset quality and FX
liquidity. However, this is not Fitch's base case. Upside
potential for the VRs of all four banks is limited, given that
they are already at the level of the sovereign rating. Isbank and
Akbank's IDRs, National ratings and debt ratings are primarily
sensitive to a change in the banks' VRs.


The RWP on Garanti's ratings reflects Fitch's expectation that
the bank will likely be upgraded by one notch (to 'BBB', the
level of Turkey's Country Ceiling) on the basis of shareholder
support following the increase of BBVA's stake. This transaction
is currently awaiting regulatory approval but Fitch understands
it is likely to take place in 3Q15. If and when Garanti's ratings
become driven by institutional support, Fitch will withdraw the
bank's SRF.


The Stable Outlook on YKB's IDRs reflects that on its parent. A
downgrade of Unicredit would result in a downgrade of YKB's
ratings. A downgrade of Turkey's sovereign rating and revision of
the Country Ceiling (BBB) would also result in a downgrade of
YKB's Long-term FC IDR. However, an upgrade of YKB would require
both (i) positive rating action on Unicredit; and (ii) the
raising of Turkey's Country Ceiling.


The SRFs of Isbank and Akbank could be revised down if either (i)
the Turkish sovereign is downgraded; (ii) the FC positions of the
banks, or more generally Turkey's external finances, deteriorate
considerably, or (iii) Fitch believes the sovereign's propensity
to support the banks has reduced. The introduction of bank
resolution legislation in Turkey aimed at limiting sovereign
support for failed banks could negatively impact Fitch's view of
support propensity, and hence the banks' SRs and SRFs. However,
Fitch does not expect this in the short term.

Upward revisions of the banks' SRFs are unlikely unless there is
a marked strengthening of the sovereign's ability to support the
banks in FC.


The subsidiaries' ratings are sensitive to any changes in (i) the
parents' ratings; and (ii) Fitch's view of the ability and
propensity of the parents to provide support in case of need.

The RWP on the ratings of Garanti Faktoring and Garanti Leasing
reflects Fitch's expectation they will continue to be aligned
with Garanti following the expected upgrade of the parent.

The rating actions are as follows:

Turkiye Is Bankasi A.S., Akbank A.S.
Long-term FC and local currency (LC) IDRs affirmed at 'BBB-';
Outlook Stable
Short-term FC and local currency IDRs affirmed at 'F3'
Viability Rating affirmed at 'bbb-'
Support Rating affirmed at '3'
Support Rating Floor affirmed at 'BB-'
National Long-term Rating affirmed at 'AA+(tur)'; Outlook Stable
Senior unsecured notes affirmed at 'BBB-'/'F3'
Subordinated notes (Isbank only) affirmed at 'BB+'

Turkiye Garanti Bankasi A.S.
Long-term FC and LC IDRs : 'BBB-' maintained on RWP
Short-term FC and LC IDRs: 'F3' maintained on RWP
Viability Rating affirmed at 'bbb-'
Support Rating: '3' maintained on RWP
Support Rating Floor affirmed at 'BB-'
National Long-term Rating: 'AA+(tur)' maintained on RWP
Senior unsecured notes 'BBB-'/'F3' maintained on RWP

Yapi ve Kredi Bankasi A.S.
Long-term FC and LC IDRs affirmed at 'BBB'; Stable Outlook
Short-term FC and LC IDRs upgraded to 'F2' from 'F3'
Viability Rating affirmed at 'bbb-'
Support Rating affirmed at '2'
National Long-term Rating affirmed at 'AAA(tur)'; Stable Outlook
Senior unsecured debt affirmed at 'BBB'
Short-term senior unsecured debt upgraded to 'F2' from 'F3'
Subordinated notes affirmed at 'BBB-'

Akbank A.G.
Long-term FC IDR affirmed at 'BBB-'; Outlook Stable
Short-term FC IDR affirmed at 'F3'
Support Rating affirmed at '2'

Ak Finansal Kiralama A.S.
Long-term FC and LC IDRs affirmed at 'BBB-'; Outlook Stable
Short-term FC and LC IDRs affirmed at 'F3'
Support Rating affirmed at '2'
National Long-term Rating affirmed at 'AA+(tur)'; Outlook Stable
Senior unsecured debt Long-term ratings affirmed at 'BBB-'
Senior unsecured debt Short-term ratings affirmed at 'F3'

Is Finansal Kiralama A.S. and Is Faktoring A.S.
Long-term FC and LC IDRs affirmed at 'BBB-'; Outlook Stable
Short-term FC and LC IDRs affirmed at 'F3'
Support Rating affirmed at '2'
National Long-term Rating affirmed at 'AA+(tur)'; Outlook Stable

Is Yatirim Menkul Degerler A.S.
National Long-term Rating affirmed at 'AA+(tur)'; Outlook Stable

Yapi Kredi Finansal Kiralama A.O. and Yapi Kredi Faktoring A.S.
Long-term FC and LC IDRs affirmed at 'BBB'; Outlook Stable
Short-term FC and LC IDRs upgraded to 'F2' from 'F3'
Support Rating affirmed at '2'
National Long-term Rating affirmed at 'AAA(tur)'; Outlook Stable

Garanti Faktoring A.S. and Garanti Finansal Kiralama A.S.
Long-term FC and LC IDRs: 'BBB-'; RWP maintained
Short-term FC and LC IDRs: 'F3', RWP maintained
Support Rating affirmed at '2'
National Long-term Rating: 'AA+(tur)'; RWP maintained


ATLANTES SME 5: Moody's Rates EUR35.6MM Class B Notes '(P)B1'
Moody's Investors Service assigned the following provisional
ratings to the Atlantes SME No. 5 asset-backed notes to be issued
by GAMMA - Sociedade de Titularizacao de Creditos, S.A./ Atlantes
SME No. 5:

  -- EUR440 million Class A Asset Backed Floating Rate Notes due
     2044, provisional rating assigned (P)A3 (sf)

  -- EUR35.6 million Class B Asset Backed Floating Rate Notes due
     2044, provisional rating assigned (P)B1 (sf)

  -- EUR164.4 million Class C Asset Backed Floating Rate Notes
     due 2044, EUR172.8 million Class D Securitisation Notes due
    2044 and EUR 33.2 million Class S Securitisation Notes due
    2044 were not rated by Moody's.

Atlantes SME No.5 is a cash securitization of secured and
unsecured loans, as well as short term credit facilities to
micro, small and medium-sized enterprises (SME) domiciled in
Portugal extended by BANIF -- Banco Internacional do Funchal,
S.A. ("BANIF", Caa2/NP). BANIF will service the securitized
portfolio, and a back up servicer (Whitestar Asset Solutions, NR)
will be appointed at closing ready to step in as needed upon a
servicer termination event. The EUR800 million portfolio is made
up of terms loans as well as credit facilities, whereas some
credit facilities have not been drawn to their limit. At closing,
the notes proceeds will only finance the drawn amount, but over
the first year of the transaction BANIF will be able to sell
further advances on the credit facilities, with the issuer
funding such purchases either with portfolio collections or
subordinated notes issuance. In case there are no additional
advances on the current accounts, the issuer will apply the
portfolio collections to amortize down the notes.

According to Moody's the ratings take into account, among other
factors, (i) a loan-by-loan evaluation of the underlying
portfolio, also complemented by the historical performance
information as provided by the originator; (ii) the structural
features of the transaction, including an amortizing cash reserve
(1.6% of the initial portfolio amount) designed to provide
liquidity and credit support over the life of the transaction
first to the Class A notes and, upon redemption of these senior
notes, to the Class B notes; and (iii) the sound legal structure
of the transaction.

Moody's notes that the transaction benefits from a series of
credit strengths, such as (i) the appointment of a back up
servicer at closing which has conducted a review of BANIF's
operations in order to be ready to step in as and when needed;
(ii) the presence of a third party highly rated account bank
where the issuer accounts sit. Moody's notes that the transaction
also features a number of credit weaknesses, such as: (i) the
originator will be able to sell additional advances drawn under
the credit facilities and to renew securitized credit facilities.
Furthermore BANIF has retained the option to replace loans whose
terms and conditions it wants to renegotiate with the customer or
loans for which there has been a breach of a representation. Such
substitutions may affect 30% of the pool; (ii) exposure to set-
off risk; (iii) the lack of a hedging mechanism to mitigate the
base rate mismatch risk on the floating portion of the portfolio
and the fixed-floating mismatch on the fixed portion of the
portfolio. These characteristics, amongst others, were considered
in Moody's analysis and ratings.

As of the cut off date (April 30, 2015), the portfolio principal
balance amounted to EUR800 million. The portfolio is composed of
8,523 contracts granted to 8,085 borrowers, mainly micro, small
and medium-sized companies. The portfolio presents some borrower
concentration, with the top borrower being 2.4% of the pool (top
borrower group 2.7%) and the top ten borrowers being 18.4% (top
ten borrower groups 19%). The portfolios' weighted average
seasoning is 5 years and the weighted average remaining term
equals approximately 4 years. The interest rate is floating for
86% of the pool, the balance being made up of fixed rate loans.

In its quantitative assessment, in view of the number of assets
and the size of the largest exposures in the portfolio, Moody's
derived the portfolio default distribution through a two-factor
Monte-Carlo approach using CDOROM tool. The rating agency derived
the default distribution, namely the mean default probability and
its related standard deviation, via the analysis of: (i) the
characteristics of the loan-by-loan portfolio information and the
historical vintage data; (ii) the potential fluctuations in the
macroeconomic environment during the lifetime of this
transaction; (iii) the portfolio concentrations in terms of
industry sectors and single obligors. Moody's assumed the
cumulative default probability of the portfolio to be 31.7%
(equivalent to a Moody's Caa1 proxy rating for an average life of
approximately 3.3 years) with a coefficient of variation (i.e.
the ratio of standard deviation over mean default rate) of around
23.6%. The rating agency has assumed stochastic recoveries with a
mean recovery rate of 30%, a standard deviation of 20%. In
addition, Moody's has assumed prepayments to be around 7.5% per

Furthermore, Moody's has considered: (i) the amortization vector
based on the assumptions that the majority of the credit
facilities were renewed; and (ii) a stressed yield vector of the
portfolio, accounting for 100% of the portfolio being un-hedged.

The main sources of uncertainty in the analysis relates to the
concentration of borrowers in the more vulnerable construction &
buildings sector and the potential deterioration in the portfolio
credit quality due to the addition of substituted loans,
additional advances under the credit facilities as well as
renewal of securitized credit facility.

Moody's also tested other sets of assumptions under its Parameter
Sensitivities analysis. The results show that the model output
for the Class A notes would have been Baa2 if the recovery rate
assumption were to decrease to 20% and the prepayment assumption
were to increase to 9.5%, all other parameters being kept
unchanged. For more details, please refer to the full Parameter
Sensitivity analysis included in the Pre-Sale Report of the

For rating this transaction Moody's used the following models:
(i) ABSROM to model the cash flows and determine the loss for
each tranche and (ii) CDOROM to derive the default definition
applicable to this transaction.

More specifically, Moody's ABSROM cash flow model evaluates all
default scenarios that are then weighted considering the
probabilities of such default scenarios as defined by the
transaction-specific default distribution. On the recovery side
Moody's assumes a stochastic (normal) recovery distribution which
is correlated to the default distribution. In each default
scenario, the corresponding loss for each class of notes is
calculated given the incoming cash flows from the assets and the
outgoing payments to third parties and noteholders. Therefore,
the expected loss for each tranche is the sum product of (i) the
probability of occurrence of each default scenario; and (ii) the
loss derived from the cash flow model in each default scenario
for each tranche. As such, Moody's analysis encompasses the
assessment of stressed scenarios.

Moody's used CDOROM to derive the default distribution for this
transaction. The Moody's CDOROM(TM) model is a Monte Carlo
simulation which takes borrower specific Moody's default
probabilities as input. Each borrower reference entity is
modelled individually with a standard multi-factor model
incorporating intra- and inter-industry correlation. The
correlation structure is based on a Gaussian copula. In each
Monte Carlo scenario, defaults are simulated.

The ratings address the expected loss posed to investors by the
legal final maturity of the notes. In Moody's opinion, the
structure allows for timely payment of interest and ultimate
payment of principal with respect to the Notes by the legal final
maturity. Moody's ratings address only the credit risk associated
with the transaction, Other non-credit risks have not been
addressed but may have a significant effect on yield to

No previous ratings were assigned to this transaction.

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

Factors or circumstances that could lead to a downgrade of the
rating affected by the action would be (1) the worse-than-
expected performance of the underlying collateral; (2)
deterioration in the credit quality of the counterparties; and
(3) an increase in Portugal's sovereign risk.

Factors or circumstances that could lead to an upgrade of the
ratings affected by today's action would be a marked improvement
in BANIF credit profile.

The principal methodology used in this rating was "Moody's Global
Approach to Rating SME Balance Sheet Securitizations" published
in January 2015.

MILANO SERRAVALLE: Fitch Affirms 'BB+' Long-Term Debt Rating
Fitch Ratings has affirmed Italian toll roads operator Milano
Serravalle-Milano Tangenziali's (MSMT) senior unsecured Long-term
debt rating at 'BB+' and removed it from Rating Watch Negative.
The Outlook is Negative.

The rating affirmation considers MSMT's diminishing liquidity
pressure and the possible downsizing of its capex plan that, if
approved by the grantor as proposed, will improve issuer capital
structure. The rating action also considers the increasing
political and financial support that MSMT and its 79%-owned
subsidiary Autostrada Pedemontana Lombarda (APL) is gaining after
the recent step-in -- as indirect controlling shareholders -- of
Finlombarda, the financial arm of Region of Lombardy. APL is a
financially-strained EUR5 billion greenfield project that, if
further materially supported by MSMT, could jeopardise the
overall economics of MSMT's concession.

The Negative Outlook reflects uncertainty over the grantor's
approval of the downsizing of MSMT's direct investment plan as
well as the lack of visibility on the additional financial
support MSMT could provide to APL.


MSMT has recently proposed to the grantor the downsizing of its
direct investment plan (to EUR380 million from EUR700 million) in
exchange for lower tariff hikes. The downsizing of the business
plan, if approved as proposed, would materially improve MSMT's
capital structure. Under Fitch revised rating case -- which
incorporates the proposed lower capex and tariff -- MSMT's
leverage will remain safely below the 6x mark over the next five

The Pedemontana project is under severe financial stress. Traffic
forecast has been revised materially lower and banks involved in
the project (as shareholders and lenders) have provided no
further equity or new financing. The EUR200 million bridge loans
continue to be regularly overdue with lenders granting only
short-term maturity extensions. To cover this financial shortfall
and to keep the project running, MSMT has materially increased
its exposure to APL since 2012.

Despite MSMT not willing to provide additional funds to APL,
further material financial support cannot be ruled out if APL
project continues to be managed with a short-term financial view.

APL has still significant financial needs. A first part of the
project (35%) was recently delivered (May 2015) but additional
funding requirement of around EUR3 billion is still needed to
complete the remaining 65% of the project. In this respect, we
expect that the recent involvement of the Region of Lombardy in
the discussion on APL funding should contribute to a clearer,
long-term view on APL's future capital structure.

Volume Risk- Midrange

From an operational standpoint, MSMT has performed substantially
in line with Fitch's expectations. Traffic figures are showing
signs of stabilization: up 0.65% in 1Q15 and 0.7% in 2014, after
falling in 2012 and 2013 due to the effect of the government's
austerity measures. Under Fitch's updated rating case, traffic
should grow1.5% in 2015, sustained by Milan EXPO, and remain
subdued thereafter. The downside risk of this scenario mainly
relates to the still evolving Italian economy and its impact on
traffic dynamics.

Price Risk- Midrange

Tariff increase in 2015 (1.5%) was lower than expected but the
concessionaire should be compensated with an approval of the
updated business plan. Under MSMT's proposed business plan,
tariff hikes will be capped at 1.5% until 2017 but lower
concession flows will be offset by capex reduction. Lower tariff
increases would limit risk of price elasticity on MSMT's network.
The Price Risk attribute is assessed as Midrange.

Infrastructure renewal - Midrange

MSMT's current ambitious capex program (of around EUR700 million)
would be substantially halved if the grantor approves the
downsized business plan with a view to reducing tariff hikes.
MSMT has a longstanding experience in delivering investment on
its network but its growing involvement in APL greenfield project
and uncertainty over the size of its direct investment program
constrain the Infrastructure Renewal attribute to Midrange

Debt Structure - Weaker

Despite possible capex downsizing, MSMT will remain dependent on
external funding to cover its direct and indirect investment
needs and repay its maturing debt.

Existing bank debt is unsecured, carries mostly floating rates
(78%) but benefits from a financial covenant package comprising
leverage and capital structure ratios. The new management and
Finlombarda are taking steps to improve MSMT's stretched
liquidity position. The EUR72 million bridge loan due at end-
March has been rolled over to September 2015 and two new five-
year amortizing loans are being arranged to refinance the bridge
loan, fund MSMT capex plan and provide what management has said
would be the last (EUR50 million) equity injection in APL. The
new facilities include leverage covenants which we understand
from management will be replicated in future debt-raising

MSMT's plan to use a single large bullet debt would weaken its
current debt structure (predominantly amortizing) and expose it
to refinancing risk, given that the company has never tapped
capital markets. The Debt Structure attribute is assessed as

Although significantly smaller in size, the main peers for MSMT
are Atlantia (A-/Stable), Sias (BBB+/Stable) Abertis
(BBB+/stable) and Brisa (BBB/Stable). Although MSMT traffic
performed in line with Italian peers and better than its
international peers (Abertis and Brisa), its credit profile is
largely weighed down by contingent risk stemming from Pedemontana
and a weaker debt structure.


The rating could be downgraded if MSMT's downsized business plan
is not approved as proposed and/or further large financial
support is or expected to be provided to APL.

Failure to maintain adequate liquidity to cover its investments
and debt service requirement could also prompt a negative rating
action as could any loosening of covenants on current and future

Current APL debt is without recourse to MSMT; any change to this
set-up (i.e. MSMT extending any form of guarantee on APL's debt)
may prompt a rating downgrade, possibly by several notches

Grantor approval of MSMT's downsized business plan and a clearer
view on MSMT's financial support to APL could be rating-positive.


SK SPICE: Moody's Assigns 'B2' CFR, Outlook Stable
Moody's Investors Service assigned a B2 corporate family rating
and B3-PD probability of default rating to SK Spice Holding Sarl,
the ultimate parent holding company of the Archroma Group.
Concurrently, Moody's has assigned a provisional (P)B2 to the US$
440 million equivalent of Senior Secured Term Loan facilities
(together, the 'Term Loans', equally split between a 5-year
amortizing Term Loan A and a 6-year 'bullet' Term Loan B) and to
the US$75 million-equivalent multi-currency senior secured
revolving credit facility (the 'RCF'), which will be borrowed by
SK Spice Sarl ('SK Sarl' or the 'borrower'), an indirect fully
owned subsidiary of SK Holding. The Term Loans and a portion of
the RCF will be used to repay in full the existing indebtedness
of Archroma and to fund the acquisition of BASF's textile
chemical business ('BASF Textile') and associated transaction
costs (together, the 'Acquisition and Refinancing Transaction').
The transaction is expected to close by August 2015. The outlook
on all ratings is stable.

This is the first time Moody's has assigned a rating to the

The rating on the Term Loans and RCF are provisional, as they are
contingent upon the closing of the Acquisition and Refinancing
Transaction (which is a condition precedent for the utilization
by the borrower of the term Loans and RCF), and are based on the
review of draft documentation. Upon completion of the deal and
conclusive review of the final loan documentation, Moody's will
assign definitive ratings to the Term Loans and RCF. A definitive
rating may differ from a provisional rating.

The B2 CFR acknowledges Archroma's (i) balanced global geographic
presence; (ii) broad product portfolio supported by in-house R&D
capabilities and protected to a large extent by patents and
trademarks, (iii) well maintained manufacturing base spread
across several different regions and (iv) large customer base
spread across its three core business lines of textile chemicals,
paper solutions and emulsions. Furthermore, Moody's expects that
the forthcoming closing of the acquisition of BASF Textile will
strengthen further the already leading global market position of
the Company in the textile chemical business, completing and
further expanding Archroma's product portfolio and offering
important cost and revenue synergies. Post-acquisition
integration risk is also assessed as limited, given the
acquisition has been structured as an asset-light deal mainly
consisting of transfer of products, IP, sales and technical staff
and only one plant in Pakistan. The acquisition will allow the
group to benefit from economies of scale and, via the transfer of
products from BASF, to improve the average utilization rate of
the group's manufacturing plants, which at c. 72% currently is
below optimal levels.

The B2 CFR also reflects (i) the high exposure of Archroma to the
highly cyclical textile and paper end-user markets, which are
characterized by low single digit growth rates and a long term
deceleration trend in Europe, which still accounts for more than
30% of the group's revenues, in spite of past and ongoing efforts
to increase exposure to the Asian markets, currently representing
34% of consolidated revenues; (ii) limited pricing power and
ability to timely pass through raw material price increases with
customers, due to intense competitive dynamics in the highly
fragmented sectors in which the company operates and considering
the still large proportion of its current product portfolio (c.
40% of products) offering low value added and differentiation vis
a vis main competitors; and (iii) relatively high starting gross
leverage, which Moody's estimates at approximately 4.0x, on a
March 2015 last-twelve-months basis and pro-forma for the
Acquisition and Refinancing Transaction. Moody's, however, is
projecting a gradual deleveraging, driven by increased EBITDA and
free cash flow generation. Such improvements are mainly
associated with the progressive achievement of cost savings
targeted by management via the implementation of several
initiatives to streamline the cost base, by reducing overheads,
improving raw material procurement terms and repositioning the
product portfolio towards a more profitable mix, with the
discontinuation of less profitable products and customers. These
strategic initiatives have started to be implemented only in the
last few quarters, given management was until recently focused on
transforming Archroma into an efficiently functioning and stable
stand-alone business, after its carve-out from Clariant in
September 2013. In spite of some preliminary costs savings having
been already achieved in the first months of 2015, Moody's
expects more benefits to be realized during the rest of 2015 and
particularly 2016, and to translate then into higher operating
profitability and lower financial leverage. By 2016FY Moody's
expects Archroma's gross leverage, as adjusted by the rating
agency, to be sustainably below 4x, in the 3.8x to 3.4x range,
assuming most of the targeted savings and synergies are realized.

Archroma's liquidity profile, pro-forma for the transaction, is
adequate. Approximately US$30 million of unrestricted cash
expected at closing (after deducting c. US$15 million of cash
held in Venezuela and Argentina) and US$75 million of committed
RCF, anticipated to be drawn for approximately US$15 million at
closing, should be sufficient to fund moderate annual capex
(approximately 2% of sales) and working capital requirements,
very limited quarterly debt amortization under Term Loan A, and
one-off costs for the integration of BASF Textile, estimated by
management in the region of $25 to $30 million spread over
several quarters post-closing.

The (P)B2 rating on the Term Loans and RCF is in line with the
CFR, and reflects the dominant position of these secured debt
instruments in the capital structure of Archroma pro-forma for
the Refinancing and Acquisition Transaction. All the rated debt
instruments rank pari-passu between them on a senior secured and
guaranteed basis. This is because they benefit from upstream
guarantees from the main operating subsidiaries representing in
aggregate more than 90% of consolidated EBITDA and assets of
Archroma group; and a comprehensive collateral package, including
the main assets of the group. As a result, the Term Loans and RCF
are the only secured debt in the capital structure, with no other
meaningful financial liabilities and unsecured debt currently
contemplated. This all senior secured bank debt structure
supports Moody's assumption of a 65% expected family recovery
rate, according to the LGD methodology used to rate the
contemplated debt instruments. This may change in the future as
the loan documentation allows to incur additional debt. Existing
lenders however are protected by the provision that any
additional debt will need to rank either pari-passu or junior to
the Term Loans and the RCF. The risk from structurally senior
debt borrowed by non-restricted subsidiaries is also limited by
narrow thresholds present in the loan documentation.

The stable outlook reflects Moody's expectation that the company
will maintain adequate liquidity and comfortable headroom under
its financial covenants at all times, and will gradually
deleverage. The outlook also assumes a smooth integration process
of BASF Textile post acquisition and the achievement of the
majority of the cost savings targeted by management under the
rationalization and cost efficiency programs which have been
already started.

Moody's would consider upgrading the rating over time if the
company were able to successfully integrate the BASF Textile
acquisition, improve its credit metrics, with a total debt/EBITDA
adjusted ratio of less than 3.5x and a RCF/Debt ratio above 15%
on a sustained basis, while maintaining positive free cash flow
generation and adequate liquidity.

Moody's would consider downgrading the rating if the company were
to perform materially below expectations, which would translate
into a weaker financial and liquidity profile compared to the
current expectations. A downgrade could be triggered if gross
leverage, as adjusted by Moody's, would exceed 5x, and RCF/Debt
would fall below 5%. A more aggressive than anticipated financial
policy contemplating special distributions to shareholders or
debt-financed acquisitions, which would prevent deleveraging and
result in a weaker liquidity position, may also contribute to
exert negative rating pressure.

The principal methodology used in these ratings was Global
Chemical Industry Rating Methodology published in December 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.

SK Spice Holding Sarl (Archroma) is one of the leading global
suppliers of textile chemicals, and with the forthcoming
acquisition of BASF's textile chemical business, is a major
consolidator within the large and still fragmented textile
chemical industry. The Company has also a marginal presence in
the large paper chemicals industry, with leading positions only
in selected products, particularly colorants and optical
brightening agents, and in the more regional emulsion products
industry, with a meaningful presence in some Latin American
markets. Archroma was set up in September 2013, when SK Capital
Partners, the current owner, acquired from Clariant (Ba1 stable)
its textile chemicals, paper solutions and emulsion products
businesses. In 2014 FY ending September 2014 Archroma reported
consolidated revenues of US$1,433 million, and pro-forma for the
acquisition of BASF Textile, consolidated revenues on a
March 2015 LTM basis are US$1.5 billion.


PENTA CLO 2: Fitch Assigns 'B-sf' Rating to Class F Notes
Fitch Ratings has assigned Penta CLO 2 B.V. final ratings, as

EUR234 million Class A: 'AAAsf'; Outlook Stable
EUR49 million Class B: 'AAsf'; Outlook Stable
EUR25.25 million Class C: 'Asf'; Outlook Stable
EUR20 million Class D: 'BBBsf'; Outlook Stable
EUR26.75 million Class E: 'BBsf'; Outlook Stable
EUR13 million Class F: 'B-sf'; Outlook Stable
EUR46.1 million subordinated notes: not rated

Penta CLO 2 B.V. is an arbitrage cash flow collateralized loan
obligation (CLO).


'B'/'B-' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the
'B'/'B-' range. The agency has public ratings or credit opinions
on 96% of the identified portfolio. The Fitch weighted average
rating factor (WARF) of the identified portfolio is 34.6, above
the covenanted maximum for assigning the final ratings of 34. The
portfolio WARF must be in compliance with the covenant on the
effective date.

High Recovery Expectations

The portfolio will comprise a minimum 90% senior secured
obligation. Fitch has assigned Recovery Ratings to 96% of the
identified portfolio. The weighted average recovery rate (WARR)
of the identified portfolio is 65.8%, above the covenanted
minimum for assigning the final ratings of 63.4%.

Diversified Asset Portfolio

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

Limited Interest Rate Risk

While interest due on the rated notes is based on a floating
index, fixed-rate assets can account for up to 10% of the
portfolio balance. Fitch factored in a 10% fixed-rate bucket in
its cash flow analysis, which shows the rated notes can withstand
excess spread compression in a rising interest rate environment.

Payment Frequency Switch

The notes pay quarterly, while the portfolio assets can reset to
semi-annual. The transaction has an interest-smoothing account,
but no liquidity facility. A liquidity stress for the non-
deferrable classes A and B, stemming from a large proportion of
assets resetting to semi-annual in any one quarter, is addressed
by switching the payment frequency on the notes to semi-annual,
subject to certain conditions.


Net proceeds from the notes issue are being used to purchase a
EUR400m portfolio of mostly European leveraged loans and bonds.
The portfolio is managed by Partners Group (UK) Management
Limited. The reinvestment period is scheduled to end in 2019.

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

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


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


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


The majority of the underlying assets have ratings or credit
opinions from Fitch and/or other Nationally Recognized
Statistical Rating Organizations and/or European Securities and
Markets Authority registered rating agencies. Fitch has relied on
the practices of the relevant Fitch groups and/or other rating
agencies to assess the asset portfolio information.

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


FORNETTI ROMANIA: Set to Exit Insolvency in Next Eight Months
Romania-Insider reports that Fornetti Romania, which has filed
for insolvency in 2011, said in a statement it has fulfilled its
obligations to the lenders, banks and partners included in the
reorganization plan.

The judicial administrators will propose closing the insolvency
procedure in the next eight months, Romania-Insider relays,
citing Mediafax.

The company estimates that it will increase its sales by 15% this
year and will invest in modernize its stores, Romania-Insider

Last year, the company managed to stay on profit, and posted a
EUR22 million turnover, Romania-Insider recounts.

Fornetti Romania is a bakery chain.  The company has 400


ASKO-LIFE LLC: Put Under Provisional Administration
The Bank of Russia, by its Order No. OD-1306 dated June 10, 2015,
took a decision to appoint a provisional administration to the
Insurance Company ASKO-Life, limited liability company.

The decision to appoint a provisional administration was taken
due to the suspension of the Company's insurance license (Bank of
Russia Order No. OD-998, dated May 7, 2015).

The powers of the executive bodies of the Company are suspended.

Vladimir P. Smagin, a receiver, member of the non-profit
partnership Interregional Self-Regulatory Organisation of
Professional Receivers, has been appointed as a head of the
provisional administration of the Company.

ASKO-Life is based in Naberezhniye Chelny, Tatarstan.

PODDERZHKA IRKUTSK: Put Under Provisional Administration
The Bank of Russia, by its Order No. OD-1304 dated June 10, 2015,
took a decision to appoint a provisional administration to the
Farming Insurance Company PODDERZHKA IRKUTSK, open joint-stock

The decision to appoint a provisional administration was taken
due to the undue performance by the Company of the solvency
restoration plan.

The powers of the executive bodies of the Company are suspended.

Vladimir P. Semenov, a receiver, member of the non-profit
partnership of Leading Receivers Dostoyaniye, has been appointed
as a head of the provisional administration.

PODDERZHKA IRKUTSK OJSC is based in Irkutsk.

SAMARA OBLAST: S&P Assigns 'BB' Long-Term Global Scale Rating
Standard & Poor's Ratings Services said that it has assigned its
'BB' long-term global scale rating and 'ruAA' Russia national
scale rating to the Russian ruble (RUB) 7 billion (about US$128
million using current exchange rate) five-year amortizing senior
unsecured bond to be issued by Russia's Samara Oblast
(BB/Negative/--; ruAA/--/--) on June 25, 2015.

The bond will have 20 quarterly fixed-rate coupons and an
amortizing repayment schedule.  The coupon rate will be defined
during the bond placement.  According to the redemption schedule,
30% of the bond is to be repaid in 2016, 20% in 2017, 25% in
2019, and the remaining 25% in 2020.

TIKHOOKEANSKIY VNESHTORGBANK: Provisional Administration Halted
The Bank of Russia took a decision, by Order No. OD-1349 dated
June 15, 2015, to terminate from June 16, 2015, the activity of
the provisional administration of the credit institution open
joint-stock company Tikhookeanskiy Vneshtorgbank appointed by
Bank of Russia Order No. OD-784, dated April 13, 2015, "On the
Appointment of the Provisional Administration to Manage the
Yuzhno-Sakhalinsk-Based Credit Institution Open Joint-Stock
Company Tikhookeanskiy Vneshtorgbank or OJSC Tikhookeanskiy
Vneshtorgbank Due to the Revocation of its Banking Licence".

The Arbitration court of the Sakhalin Region previously issued an
order, dated June 4, 2015, on recognizing insolvent (bankrupt)
the credit institution open joint-stock company Tikhookeanskiy
Vneshtorgbank, and appointing a receiver in compliance with
Clause 3 of Article 18927 of the Federal Law "On the Insolvency


FTPYME SABADELL 4: Fitch Affirms 'CCCsf' Rating on Class C Notes
Fitch Ratings has affirmed GC FTPYME Sabadell 4 FTA's notes, as

  Class A(G) notes (ISIN ES0341169011): affirmed at 'A+sf';
  Outlook Stable

  Class B notes (ISIN ES0341169029): affirmed at 'BBsf'; Outlook

  Class C notes (ISIN ES0341169037): affirmed at 'CCCsf';
  Recovery Estimate 65%

The transaction is a securitization of EUR750 million static pool
of loans at closing granted by Banco de Sabadell to small and
medium-sized Spanish enterprises (SMEs).


The notes are capped at 'A+sf' due to payment interruptions
resulting from exposure to Banco de Sabadell which acts as
servicer of the loans. The outstanding balance of this class is
currently EUR15.8 million, with 70.7% credit enhancement provided
by the subordination of the junior notes.

The affirmation of the mezzanine tranche reflects the
stabilization of transaction performance. Current defaults have
increased slightly to EUR16.6 million in March 2015 from EUR15.5
million in March 2014. Over the same period, 90+ day
delinquencies have decreased to 4.3% from 7.3%. The reserve fund
continues to be fully depleted since March 2014 while the
principal deficiency ledger has declined to EUR2,350 from

The class C notes have been affirmed at 'CCCsf', reflecting their
vulnerability to further defaults. It is currently under-
collateralized by a small margin.

Despite the swap being collateralized Fitch has not given credit
to the transaction's swap because Banco de Sabadell, the swap
provider, is not rated by us and, in our view, may be difficult
to replace. Under the swap terms and conditions, the fund pays
interest received on the loans and receives the weighted average
coupon on the notes plus 50 bps.

The portfolio continues to be significantly exposed to the
Spanish real estate and building and materials sector that
currently represent 54.6% of the total. Fitch has accounted for
this in its analysis by stressing the probability of default (PD)
associated with loans in this sector.


Stressing the default probability and recoveries by 10% each
would have no rating impact on the class A(G) notes but would
result in a downgrade of the class B and C notes by up to three


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


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

Fitch did not undertake a review of the information provided
about the underlying asset pool ahead of the transaction's
initial closing. The subsequent performance of the transaction
over the years is consistent with the agency's expectations given
the operating environment and Fitch is therefore satisfied that
the asset pool information relied upon for its initial rating
analysis was adequately reliable.

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.


The information below was used in the analysis.

-- Loan-by-loan data provided by GestiCaixa SGFT, SA as at 11
    May 2015

-- Transaction reporting provided by GestiCaixa SGFT as at 31
    March 2015

U N I T E D   K I N G D O M

NORTHERN ROCK: Mortgage Portfolio Attracts Potential Buyers
Matt Scuffham at Reuters, reports that a GBP13 billion mortgage
portfolio put up for sale by UK Asset Resolution, the "bad bank"
charged with winding down the assets of two failed British
lenders, has lured interest from several possible bidders.

UKAR, which is selling off the loans of bailed-out Northern Rock
and Bradford & Bingley, said in April it was selling the
portfolio, named Granite, along with its mortgage servicing
operations, aiming to speed up the repayment of taxpayers' money,
Reuters relates.

"We have had indicative expressions of interest on both
transactions from several parties," UKAR Chief Executive Richard
Banks told Reuters.  "We are now going through a period of

Chancellor George Osborne is keen to sell the government's
banking assets to recoup taxpayers' money splashed out in a
bailout of troubled lenders during the 2007-2009 financial
crisis, Reuters notes.

Under financial plans set out after the Conservatives were
elected with a surprise majority in May, Mr. Osborne said last
week the government would begin selling shares in Royal Bank of
Scotland in coming months having already sold more than half its
stake in Lloyds Banking Group, Reuters relays.

Other banking assets are owned by UKAR and Reuters reported
earlier in June, citing sources familiar with the matter that a
group including investment bank Goldman Sachs and U.S. buyout
firm Blackstone had bid for Granite, Reuters relates.  The
sources said RBS is also interested in the portfolio, Reuters

According to Reuters, banks said a shortlist of potential buyers
would be in place by the end of July but warned that extended
"due diligence" on both transactions would follow, making it
unlikely either will complete in 2015.

Northern Rock was a British bank, most recently owned and
operated by Virgin Money.  It was based at Regent Centre in
Newcastle upon Tyne, United Kingdom.  During 2012 the Northern
Rock brand was phased out and replaced by Virgin.

OPTIMAL PAYMENTS: Moody's Assigns (P)Ba2 CFR; Outlook Stable
Moody's Investors Service assigned a provisional (P)Ba2 corporate
family rating to Optimal Payments Plc. Concurrently, Moody's has
also assigned a (P)Ba2 rating to the company's EUR500 million of
term loan and US$85 million of revolving credit facility (RCF) to
be issued by Netinvest Limited. The outlook on the ratings is

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings reflect Moody's preliminary
credit opinion regarding the transaction only. Upon conclusive
review of the final documentation, Moody's will endeavor to
assign a definitive rating to the loans. A definitive rating may
differ from a provisional rating. The attributed ratings are
subject to a successful closing of Optimal Payments' acquisition
of the Skrill Group Limited.

The (P)Ba2 rating assigned to Optimal Payments reflects (i) its
significant exposure to the gambling industry (ii) a degree of
client concentration with the company's top customer representing
around 32% of revenues as of FY2014 (company expects proportion
to decline to 15-20% by year-end 2015) (iii) exposure to changes
in regulatory framework in the company's end markets and/or
regulation by authorities overseeing their industry (iv) the
fragmented characteristics of the payment-processing industry
where competitive solutions may yet emerge.

These factors are balanced to an extent by (i) the increased
scale and strategic fit that Skrill will bring to the combined
entity upon closing of the transaction (ii) our expectations of a
continued growth momentum in Optimal Payments' end-markets
allowing for strong organic growth-rates to continue (iii) the
company's high profitability with EBITDA-margins in the high 20s
translating into solid free cash flows (iv) a very clear
financial policy targeting net leverage (as reported) of 2.0x-
2.5x supporting Moody's expectations that credit metrics will
remain strong(v) a very good liquidity profile.

On March 23, Optimal Payments announced it would acquire Skrill
for a total consideration of EUR1.1 billion to be paid in cash
and shares. The transaction -- expected to close in the third
quarter of 2015 -- will significantly enhance the combined
entity's scale in an industry where Moody's believes scale is
important. The transaction will also enhance Optimal Payments'
business profile through a more balanced geographic footprint and
wider service-offering, notably through Skrill's prepaid voucher
business. Moody's believes the scalability of the business will
continue to allow for high profit-margins supporting the
company's free cash flows which Moody's believe will progress
towards USD200 million by year-end 2016. Whereas Moody's
acknowledges the industry remains fragmented and that
consolidation is likely to continue, Optimal Payments' clear
financial policies provides comfort as regards to the level of
maximum leverage the company will be operating with.

The company benefits from favorable growth dynamics in its end
markets as there is a natural migration towards online. While
Moody's would expect this favorable dynamics to persist in the
foreseeable future, Moody's notes, however, that the company's
reliance upon gambling as an end-market is likely to remain high.
While acknowledging that the overall trend in gambling is one
towards a higher degree of liberalization of the markets, the
company's high concentration on gambling nevertheless makes it
vulnerable towards changes in the regulatory framework governing
the gambling-industry.

The (P)Ba2 ratings assigned to the EUR500 million of term loan
and the USD85 million of RCF reflects the instruments positioning
in the capital structure. Moody's understands the instruments to
benefit from guarantees representing at least 85% of the
company's EBITDA.

Optimal Payments' liquidity profile is very good supported by our
expectations of strong positive free cash flows going forward. An
additional liquidity cushion is provided by the company's USD85
million RCF, out of which USD5 million will be drawn at closing.
Moody's would expect Optimal Payments to maintain ample leeway
under its financial covenant.

The stable outlook on the ratings reflects our anticipations that
Optimal Payments will continue benefiting from a high organic
growth in its end-markets allowing for the company to maintain
strong credit metrics.

Positive pressure on the rating could develop should Optimal
Payments succeed in further diversifying its exposure to
verticals other than gambling while maintaining its strong
trajectory of organic growth. Moody's would also expect Optimal
Payments capital structure to be maintained with a debt/ EBITDA
ratio declining towards 2.0x.

Conversely, negative pressure could develop if the company's
adjusted leverage moves sustainably above 3.0x or if changes to
financial policies weaken the company's current strong liquidity
profile. Negative pressure could also develop should disruptive
technologies emerge or if the company's market-positioning
weakens materially.

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.

Optimal Payments PLC is a global provider of online payment
solutions. For the last twelve months to December 2014, pro forma
for the Skrill acquisition, the company recorded revenues of
US$722 million and an EBITDA of US$171 million.

TEN ALPS: Bob Geldof Steps Down as Part of Turnaround Plan
Phakamisa Ndzamela at The Financial Times reports that Bob Geldof
is leaving Ten Alps, the lossmaking television production company
he co-founded in 1999, as part of a turnaround plan put in place
by its new management.

Ten Alps will also acquire Reef Television, maker of shows such
as Selling Houses with Amanda Lamb, for up to GBP5 million, the
FT discloses.  It is seeking to build a base as an independent
producer, while reducing the debt that has hindered its ability
to invest, the FT says.

Mr. Geldof, the musician and philanthropist, will step down as a
non-executive director of Ten Alps next month, as will Timothy
Hoare, chairman of investment bank Canaccord Genuity, the FT

Ten Alps' problems reflect how the so-called golden age in TV has
failed to filter through to the bottom line of some production
businesses, the FT notes.

The company, which makes low-margin documentaries for
broadcasters such as the BBC and Channel 4, has reported pre-tax
losses for four successive years, the FT relays.

Johnathan Barrett, an analyst at house broker N+1 Singer, as
cited by the FT, said Ten Alps had been burdened by excess debt,
"limiting the scope to reorganize and grow the group".

Ten Alps has reduced its gross debt from GBP9 million to GBP2
million through a debt-to-equity swap, the FT relates.  The
company has also conditionally raised GBP4.5 million through
share sales in order to boost its working capital and to fund the
acquisition of Reef, the FT recounts.

The deal is pending shareholder approval at a general meeting on
July 10, the FT states.

Ten Alps Plc is a UK-based media company, founded in 1999.

VEDANTA RESOURCES: Moody's Says Cairn Merger is Credit Positive
Moody's Investors Service said that Vedanta Ltd's (unrated)
proposed merger with Cairn India Ltd (unrated) is credit positive
for Vedanta Resources plc (Ba1, negative). Ratings and outlook
remain unchanged pending the transaction's execution. However,
improved liquidity, lower leverage and reduced subordination
within the group could lead to ratings being stabilized or
current notching between the corporate family rating and the Ba3
bond rating being reviewed upon successful completion of the

Should the merger proceed -- subject to approval, in a cashless
all-stock transaction -- minority shareholders would receive one
equity share and one 7.5% preference share in Vedanta Ltd for
every share held in Cairn India.

Following completion of the transaction, Vedanta Resources'
shareholding in its subsidiary Vedanta Ltd will reduce to 50.1%
from 62.9%. At end-March 2015, Cairn India had US$2.9 billion in
cash and no external debt outstanding.

"The merger will provide Vedanta Ltd better access to Cairn India
and its subsidiaries' current large cash balances of US$2.9
billion and future cash surpluses as previous access was only
possible through up-streaming of dividends," says
Kaustubh Chaubal a Moody's Vice President and Senior Analyst.

"With current crude oil prices for Brent in the US$64/barrel
area, and weak LME prices for aluminum weighing on its EBITDA,
the strengthening of Vedanta Resources' balance sheet -- which
now seems plausible with improved access to Cairn India's cash --
is imperative to stave off further pressure on its rating," says
Mr. Chaubal who is also the Lead Analyst for Vedanta.

"We also view the proposed Cairn India merger as a major step in
the simplification of Vedanta Resources' complex structure, and
in particular addressing some of the risks associated with the
group's thinly capitalized but highly leveraged parent company,"
adds Mr. Chaubal.

At end-March 2015, Vedanta Resources reported consolidated debt
of US$16.7 billion, of which US$7.7 billion of unsecured debt,
rated at Ba3 negative, was held at Vedanta Resources and the
balance at various operating and intermediate holding companies.

With access to Cairn India's cash and future cash flow, Vedanta
Ltd could either repay debt or fund its other businesses.
However, Vedanta Resources' credit profile will only benefit to
the extent that the additional cash and cash flow are used
towards reducing the group's reliance on debt. Reduction of debt
could be in the form of part repayment of Vedanta Ltd's external
debt, or repayment in part of the US$2.6 billion intercompany
debt currently held at Twin Star Holdings Mauritius Ltd, which
was in the form of a loan from Vedanta Resources. The latter will
provide Vedanta Resources the liquidity to repay some of its
unsecured debt, which will also improve consolidated leverage

Moreover, structural subordination of the senior unsecured debt
at Vedanta Resources remains. Although the merger removes one
layer between Vedanta Resources' senior unsecured debt and Cairn
India's cash, Vedanta Resources remains without operating assets
and dependent on up-streaming of dividends from the operating and
intermediate companies. Moreover, with its shareholding in
Vedanta Ltd reducing to 50.1% from 62.9%, cash leakage to
minority shareholders will reduce Vedanta Resources' access to
Vedanta Ltd.'s profits.

In order to narrow the notching between the corporate family
rating and the issue rating, Moody's would look for total
priority debt to be below 35%-40% of total consolidated debt, and
for total priority debt to be less than 15%-20% of total group
assets. As of March 31, 2015, the ratios stand at 53% and 24%,

Debt reduction following the merger will reduce rating pressure,
although the merger increases the risk that Vedanta Ltd will
ultimately be held accountable for Cairn India's US$3.2 billion
tax liability.

Vedanta Resources' ratings have been under pressure due to a
sharp fall in crude oil prices that affected Cairn India's
earnings, its largest contributor. This led to Moody's negative
rating outlook on Vedanta Resources in January this year.

Crude prices fell to US$85/barrel for the fiscal year ending
March 2015 (FY2015), against US$107/barrel in FY2014. As a
result, Cairn India's EBITDA dropped by 40% to US$1.5 billion.

While contributions from Vedanta Resources' other businesses such
as zinc and aluminum have grown, the steep fall in Cairn India's
EBITDA resulted in Vedanta Resources' adjusted leverage rising to
3.9x at end-March 2015 from 3.3x at end-March 2014.

In addition, Vedanta Ltd. is evaluating a transaction with the
Government of India (Baa3 positive) in relation to acquiring
minority stakes in Hindustan Zinc Ltd (HZL, unrated) and Bharat
Aluminum Company (BALCO, unrated).

At end-March 2015, HZL had cash balances of US$4.9 billion and no
external debt, whereas BALCO had external debt of US$767 million
and no cash balances.

Moody's would change the outlook on Vedanta Resources to stable
from negative if there was substantial debt reduction and
improved operating performance.

Credit metrics indicative of this outlook change include (1)
adjusted leverage reverting to less than 3.0x -- 3.5x; (2) cash
from operations (CFO) less dividends / adjusted debt ratio
improving to more than 20% - 25%; (3) EBIT interest coverage
rising to more than 3x -- 3.5x, on a sustained basis, while
generating positive free cash flow.

On the other hand, Moody's could downgrade the rating if the
following credit metrics are maintained, on a sustained basis:
(1) adjusted debt / EBITDA in excess of 3.5x -- 4.0x; (2) (CFO --
dividend) / debt ratio below 15%; (3) EBIT interest coverage less
than 3.5x; or (4) if the company consistently generates negative
free cash flow.

The principal methodology used in this rating was Global Mining
Industry published in August 2014.

Headquartered in London, UK, Vedanta Resources plc is a
diversified resources company with interests mainly in India. Its
main operations are held by Vedanta Limited, a 62.9%-owned
subsidiary which produces zinc, lead, silver, aluminium, iron ore
and power. In December 2011, Vedanta Resources acquired control,
of Cairn India Limited, an independent oil exploration and
production company in India, which is a 59.9%-owned subsidiary of
Vedanta Ltd. On June 14 2015, Vedanta Ltd. announced the proposed
merger of Cairn India with itself, in a cashless all stock
transaction, subject to approvals. If the merger goes through as
announced, Vedanta Resources' shareholding in Vedanta Ltd will
reduce to 50.1%. Listed on the London Stock Exchange, Vedanta is
69.9% owned by Volcan Investments Ltd. For the year ended March
2015, Vedanta Resources reported revenues of US$12.9 billion and
EBITDA of US$3.7 billion.


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

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Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez,
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