TCREUR_Public/150723.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, July 23, 2015, Vol. 16, No. 144

                            Headlines

A Z E R B A I J A N

AZERBAIJAN INT'L: Privatization Likely Positive for Fitch Ratings


B U L G A R I A

UNITED BULGARIA: Moody's Affirms 'B' LT Issuer Default Rating


C R O A T I A

ZAGREBACKA BANKA: S&P Revises Outlook to Neg. & Affirms 'BB' CCR


F R A N C E

CASAVITA: S&P Affirms 'B' LT Corp. Credit Rating, Outlook Stable
EPHIOS BONDCO: Fitch Affirms 'B(EXP)' LT Issuer Default Rating
EPHIOS HOLDCO II: S&P Assigns Prelim. 'B+' CCR, Outlook Stable
HOMEVI SAS: Moody's Ups Corp. Family Rating to B1, Outlook Stable


G E R M A N Y

MUNICH HOLDINGS: S&P Raises Corp. Credit Rating to 'B+'
TELE COLUMBUS: Moody's Affirms B2 CFR & Changes Outlook to Stable


G R E E C E

GREECE: Parliament to Vote on Bill for Euro Rescue Package
GREECE: S&P Raises Sovereign Ratings to 'CCC+', Outlook Stable


I R E L A N D

BEST MENSWEAR: Court Appoints Interim Examiner; Hearing Set
MOTHERCARE IRELAND: High Court Appoints Interim Examiner


I T A L Y

SNAI SPA: Moody's Assigns (P)B1 Rating to EUR110MM Sr. Notes


N E T H E R L A N D S

CONTEGO CLO I: Moody's Raises Rating on Class E Notes to Ba2
EURO GALAXY: Moody's Raises Rating on Class E Notes to 'Ba1'
GLOBAL UNIVERSITY: Moody's Assigns 'B2' CFR, Outlook Stable


R U S S I A

MOSCOW RE: S&P Affirms Then Withdraws 'BB' Counterparty Rating
PROMSVYAZBANK OJSC: S&P Affirms 'BB-/B' Counterparty Ratings
SKB-BANK: Moody's Withdraws 'B2' Long-Terms Deposit Ratings
TIME BANK: Put Under Provisional Administration, License Revoked


S P A I N

BBVA CONSUMO 7: Moody's Assigns (P)B1 Rating to Series B Notes
UFINET TELECOM: S&P Affirms 'B' CCR, Outlook Remains Stable


U K R A I N E

BANK CAPITAL: Declared Insolvent by National Bank of Ukraine
KYIVSKA RUS: Oleksandr Volkov Named Bankruptcy Commissioner


U N I T E D   K I N G D O M

AFREN PLC: Postpones Meetings on Debt Restructuring
FAIRHOLD SECURITISATION: Moody's Cuts Ratings on 2 Notes to C(sf)
LLOYDS BANK: S&P Affirms 'BB+srp' Rating to Class J Notes
STANTON MBS I: Fitch Raises Rating on Class D Notes to 'CCCsf'


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A Z E R B A I J A N
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AZERBAIJAN INT'L: Privatization Likely Positive for Fitch Ratings
-----------------------------------------------------------------
Fitch Ratings says that the planned balance sheet clean-up and
subsequent privatization of International Bank of Azerbaijan
(IBA, BB/Stable/b-) could be moderately positive for the bank's
credit profile and ratings.

The actual impact will depend primarily on (i) the completeness
of the clean-up, i.e. the extent to which Fitch views the bank's
asset quality and capitalization as having strengthened as a
result; and (ii) the relationships between the state, the bank's
new shareholder(s) and IBA following privatization, and how these
may influence the likelihood of government support. Fitch will
review the bank's ratings when more information becomes available
on the planned asset sale and privatization.

On July 15, the President of Azerbaijan, Ilham Aliyev, signed a
decree on measures to restore IBA's financial position in order
to prepare the bank for privatization. According to the decree, a
state-owned entity, CJSC Agrarkredit, will issue bonds guaranteed
by the sovereign, and use the proceeds to buy certain impaired
and/or high risk assets from IBA. The Ministry of Finance and
Central Bank should determine the volume of distressed assets to
be purchased within 15 days, although the timeframe for the
actual asset purchase and/or launch of privatization is not
specified.

If IBA is able to sell the bulk of its impaired and high-risk
assets at (or close to) book value, this could result in an
upgrade of the bank's 'b-' Viability Rating (VR). The VR at
present primarily reflects the bank's weak capitalization and
asset quality. However, uncertainty remains about the specific
assets to be transferred, their amount, and the price that will
be paid for them.

Fitch believes that IBA's problem assets are substantial, despite
reported NPLs (non-performing loans, 90 days overdue) and rolled-
over loans being equal to only a moderate 7.2% and 6.6% of end-
2014 gross loans, respectively. Fitch estimates that other high
risk loans among IBA's largest exposures, including project
finance lending to start-up businesses and construction loans
with sizeable grace periods, were approximately AZN1bn (11% of
gross loans) at end-1Q15. Additional asset quality and corporate
governance issues stem from the legacy promissory notes portfolio
(around AZN700m, net of impairment reserves), which is largely
exposed to construction projects in Russia with high non-
completion risks. Reserve coverage of NPLs was a reasonable 135%
at end-2014, but rolled-over loans, large high-risk exposures and
the promissory note portfolio combined exceeded 3x end-2014 Fitch
Core Capital (FCC).

IBA's regulatory Tier 1 capital ratio was a moderate 7.7% at end-
March 2015, while the FCC ratio is likely to have fallen
significantly from 7.4% at end-2014 due to the devaluation of the
manat in 1Q15. Fitch views solvency as weak at present given the
low core capital ratios and the substantial stock of unreserved
high-risk assets. However, capital ratios could increase by about
2pts by end-2015 as a result of a final planned AZN200 million
equity injection under the bank's recapitalization program.
Furthermore, the potential sale of problem exposures may not just
lower asset quality risks but also reduce significantly risk-
weighted assets.

IBA's 'BB' Long-term Issuer Default Rating and senior debt rating
reflect potential support from the Azerbaijan authorities, in
case of need, given IBA's high systemic importance, majority
(51.1%) state ownership and fairly small size relative to the
sovereign's available resources. However, Fitch views the
sovereign's propensity to provide support as only moderate due to
the uneven track record of support and weaknesses in the bank's
corporate governance.

If the problem asset sale and planned equity contribution result
in a marked strengthening of IBA's capitalization, then Fitch
would view this as a significant improvement in the authorities'
support track record, which could be positive for the bank's IDRs
and senior debt rating. In considering any potential upgrade,
Fitch would also take into account the possible impact of IBA's
privatization.

The sale of the bank would likely be somewhat negative for
Fitch's view of the authorities' propensity to provide support.
However, we would probably still view the support propensity as
high, given IBA's considerable systemic importance, its
significant business with the state sector (around AZN1.5bn, or
18% of IBA's end-2014 liabilities, came from state-controlled
entities) and the potential for the bank to be sold to new owners
who would be closely connected to the local political elite. The
fact that IBA's privatization has been on the agenda for more
than a decade without any tangible progress so far also gives
rise to significant uncertainty about whether and when a sale
will take place.



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B U L G A R I A
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UNITED BULGARIA: Moody's Affirms 'B' LT Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has affirmed the Long-term Issuer Default Ratings
(IDRs) of United Bulgarian Bank AD (UBB) at 'B' with a Stable
Outlook, and of Raiffeisenbank (Bulgaria) EAD (Raiffeisenbank) at
'BBB-' with a Negative Outlook. At the same time, the agency
upgraded Raiffeisenbank's Viability Rating (VR) to 'bb-' from
'b+'.

The upgrade in Raiffeisenbank's VR to 'bb-' from 'b+' reflects
improvements in asset quality, further to the bank's action to
clean up its legacy loan book through write offs and sales, and a
return to operating profitability in 2014, driven by lower credit
risks costs. The bank also holds sizeable capital buffers.

KEY RATING DRIVERS

IDRs

UBB's IDRs are driven by its standalone financial strength, as
expressed by its VR of 'b'.

Raiffeisenbank is Raiffeisen Bank International's (RBI) 100%-
owned Bulgarian subsidiary. The bank's IDRs are notched down once
from its parent, driven by a high probability of support, in case
of need. This is because we believe that Raiffeisenbank is a
strategically important subsidiary for RBI, given the importance
of CEE for RBI, Raiffeisenbank's strong integration into the
group and the track record of support to date. The Negative
Outlook on Raiffeisenbank's Long-term IDR mirrors RBI's Outlook.

VRs

UBB's VR reflects weak asset quality, and a lack of progress in
resolving its large stock of legacy NPLs. It also reflects the
bank's good liquidity profile, despite significant recent outflow
of customer deposits (11% in 1H15) and a gradual weakening of its
franchise.

UBB has reasonable capitalization (Fitch Core Capital: 26% at
end-2014), which would act as a buffer against potential
additional provisioning costs, and satisfactory pre-impairment
profitability. UBB's VR is above that of its parent, National
Bank of Greece (NBG; RD), reflecting Fitch's view of only limited
contagion risk to UBB from NBG; this is based on UBB's self-
sustainability in terms of funding, and marginal credit exposure
to NBG.

At end-1H15, liquid assets (defined as cash, accounts with the
central bank and unencumbered Bulgarian government debt
securities) accounted for a comfortable 30% of total customer
deposits. This buffer has deteriorated since end-2014, when it
covered 40% of total customer deposits, as a result of (mainly
corporate) customer outflows, but remains robust for the rating
level. UBB has no major repayments due in 2015-2016, given low
volumes of third party institutional funding; non-deposit funding
accounted for just 5% of total liabilities at end-2014.

Asset quality remains weak, and UBB reported IFRS impaired loans
at 35% of gross loans at end-1H15. The bank has not made progress
in cleaning up this portfolio of legacy problem exposures.
Coverage of impaired loans with IFRS reserves remains modest (50%
of IFRS impaired loans at end-2014), in view of the slow legal
environment for the realisation of collateral and depressed real
estate prices. Net impaired loans/ Fitch Core Capital (FCC) has
improved but remained high at 76% at end-2014. However, capital
provides some protection against potential additional
provisioning costs, with the FCC ratio standing at 26% at end-
2014. Fitch calculates that an increase in coverage to 80% would
result in FCC falling to a still solid 16%.

UBB has minimal funding from NGB (a subordinated loan of BGN153
million at end-2014, amortizing over the next three years; a low
2.8% of total funding at end-2014); and minimal credit exposure
to NBG. In February 2015, the Bulgarian National Bank took
measures to eliminate potential channels of contagion by
requiring Greek subsidiary banks to cut their credit exposures to
parent groups. Further to this, UBB repatriated around BGN847
million (about EUR400 million) of short-term deposits it had with
NBG at end-2014. UBB is operationally independent, although its
risk management framework is aligned with that of the parent, and
senior executive management includes long-term NBG staff members.

Raiffeisenbank's VR reflects improvements in asset quality, as
the bank has taken measures to clean up its portfolio, and a
return to operating profitability linked to reduced credit risk
costs. The bank's individually impaired loans, plus loans past
due 90 days but not impaired, were 13.8% of total loans at end-
2014 (18.7% at end-2013), following net write offs of 6.6% in
2014 (in particular of large legacy NPLs from the construction
and CRE sectors).

The bank's strategy was to absorb the bulk of the loan impairment
charges related to its legacy problem loans in 2013, and this
allowed it to return to operating profitability in 2014. However,
operating results remain under pressure from a low growth
environment and high levels of liquidity. Capital provides a
sizeable buffer (FCC of 29% at end-2014), although capital ratios
are boosted by the introduction of IRB for capital calculation
requirements. The bank expects current levels of capital to
support renewed growth, as and when the operating environment
improves.

RATING SENSITIVITIES

UBB's IDRs are sensitive to changes in its VR. UBB's VR could be
downgraded in case of a sharp or sudden weakening of UBB's
liquidity profile linked to higher rates of customer deposit
withdrawals. Progress in resolving the bank's large stock of
legacy NPLs, in parallel with higher levels of coverage with IFRS
reserves, would be positive for the bank's VR.

Raiffeisenbank's IDRs are sensitive to a change in RBI's IDRs.
They are also sensitive to changes in Fitch's view of RBI's
commitment to the CEE in general, and to the Bulgarian market in
particular.

Raiffeisenbank's VR could be upgraded further in case of
continued improvements in asset quality, and a pick-up in
operating profitability linked to renewed loan growth and an
improved operating environment for lending.

The rating actions are as follows:

United Bulgarian Bank AD
Long-term IDR affirmed at 'B'; Outlook Stable
Short-term IDR affirmed at 'B'
Support Rating: affirmed at '5'
Viability Rating: affirmed at 'b'

Raiffeisenbank (Bulgaria) EAD
Long-term IDR: affirmed at 'BBB-'; Outlook Negative
Short-term IDR: affirmed at 'F3'
Support Rating: affirmed at '2'
Viability Rating: upgraded to 'bb-' from 'b+'



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C R O A T I A
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ZAGREBACKA BANKA: S&P Revises Outlook to Neg. & Affirms 'BB' CCR
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Croatia-based Zagrebacka banka dd (ZB) to negative from stable.
At the same time, S&P affirmed its 'BB' long-term counterparty
credit rating on ZB.

The outlook revision on ZB mirrors the action on the Republic of
Croatia on July 17, 2015.  The negative outlook on Croatia
(BB/Negative/B) reflects S&P's view that Croatia's general
government indebtedness, which, as a share of GDP, has doubled
since 2008, will continue to increase to over 90% of GDP in 2016.
S&P believes there is a significant risk that, following the
upcoming parliamentary elections to be held by February 2016, the
policy response to increasing debt and momentum for reform will
remain insufficient to reverse that trend.  This would cast
further doubts on the ability of Croatia's political institutions
to implement effective policies to deliver sustainable public
finances and promote balanced economic growth.

According to S&P's criteria, the long-term rating on ZB is
constrained by the long-term foreign currency rating on the
sovereign.  Considering ZB's high exposure to the Croatian
government through holdings in government securities and lending
to government-related entities, S&P don't believe that its rating
can be higher than the sovereign rating.

S&P's stand-alone credit profile (SACP) for ZB is 'bb'.  The SACP
on ZB reflects its leading market position in the Croatian
domestic market and its adequate capitalization, in S&P's view.
These factors are somewhat offset by continued negative pressure
on its asset quality and operating performance.

If S&P assessed that the bank's SACP had weakened, due to
deterioration in its asset quality or strain on its operating
performance, the effect on the rating would be neutral because
S&P would apply uplift for expected support from its parent,
UniCredit Bank Austria AG (BBB/Negative/A-2).  This is because
S&P continues to consider ZB as a "strategically important"
subsidiary of UniCredit Bank Austria AG, which is its controlling
shareholder, with an 84.5% stake.  According to S&P's criteria,
this could potentially yield up to three notches of support above
the SACP. S&P believes ZB fits well with UniCredit's objective to
be a major player in commercial banking in Central and Eastern
Europe.

The negative outlook mirrors that on the sovereign, reflecting
S&P's view that there is at least a one-in-three chance that it
could lower the rating in the next 12 months.

S&P would lower the rating on the bank if it lowered the rating
on the sovereign.  This could be triggered if government policies
did not robustly counter Croatia's entrenched fiscal and economic
challenges after the election and if S&P saw the effectiveness or
credibility of the Croatian National Bank undermined by further
increased euro-ization or political influence.

S&P would revise the outlook on the bank to stable if it took the
same action on the sovereign, all other factors remaining
unchanged.  This could be triggered by accelerated efforts
toward, and meaningful progress in addressing key structural
economic and budgetary challenges and a more substantial and
sustained return of economic growth.

S&P could revise downward its assessment of ZB'S SACP if tough
economic conditions put further pressure on its asset quality.
However, a lower SACP lone would not trigger an immediate
downgrade, because S&P also takes into account group support from
UniCredit Bank Austria.



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F R A N C E
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CASAVITA: S&P Affirms 'B' LT Corp. Credit Rating, Outlook Stable
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' long-term
corporate credit rating on France-based private elderly care home
operator CasaVita (DomusVi).  The outlook is stable.

In addition, S&P affirmed the 'B' issue rating on DomusVi's
senior secured notes.  The recovery rating on these notes is
unchanged at '4', indicating S&P's expectation of average
recovery, in the lower half of the 30%-50% range.

At the same time, S&P affirmed the 'B+' issue rating on DomusVi's
super senior revolving credit facility (RCF) maturing in 2021.
The recovery rating on this RCF is unchanged at '2', indicating
S&P's expectation of substantial recovery, in the higher half of
the 70%-90% range.

DomusVi has agreed to acquire Spanish nursing home provider
Geriatros from Spanish private equity fund Magnum, via its
subsidiary HomeVi.  S&P understands that DomusVi will finance the
purchase via a EUR125 million tap on its existing senior secured
notes due 2021 and the issuance of EUR90 million of additional
equity.

S&P believes that the transaction will result in increased
leverage by year-end 2015; however, S&P expects to see adjusted
debt-to-EBITDA return to 2014 levels of 6.5x-7.0x by year-end
2016.  The quick turnaround in adjusted leverage metrics has been
driven by Geriatros' strong profitability, which, in S&P's view,
will enhance the group's future earnings levels.

S&P views the acquisition of Geriatros as supportive of S&P's
assessment of the group's "fair" business risk profile.  S&P
views positively the increased size of the combined entity, as
well as the potential for better revenue diversification as
Geriatros brings access to Spain and consequently to a different
reimbursement regime. Geriatros will account for about 25% of the
combined group's projected reported EBITDA of EUR110 million.

S&P continues to base its assessment of the combined group's
business risk profile on the performance of DomusVi.  This is
because DomusVi continues to generate the majority of the group's
revenues and profits.  In S&P's view, DomusVi's operating
environment is stable and provides relatively good visibility,
thanks to an aging population and high barriers to entry.

S&P notes that DomusVi's revenue mix benefits from a large
portion of private revenues.  S&P expects DomusVi's revenues to
rise at least in line with the market, mainly on the back of
increasing average daily rates for accommodation and associated
services, given that occupancy is already near maximum.

DomusVi leases a large portion of its real estate.  S&P views
this type of cost structure negatively because rents represent
additional fixed costs.  In S&P's view, this could weigh on
DomusVi's profitability because S&P considers that the industry
offers low growth prospects.

The stable outlook reflects S&P's expectation that DomusVi will
successfully complete the Geriatros acquisition, continue to
operate in a stable and predictable operating environment, and
maintain its track record of adjusting its fees and successfully
rolling out new services.

By doing so, S&P believes that DomusVi will be able to improve
its profitability, despite the restricted potential for organic
volume growth in France, as it will benefit from higher growth
rates in Spain.  The outlook also reflects S&P's view that
DomusVi should be able to continue covering its capex and
maintain an adjusted fixed-charge coverage ratio of about 1.3x,
thereby enabling it to comfortably make its interest and rent
payments.

S&P could take a negative rating action on DomusVi if the
combined entity experienced significantly weaker adjusted EBITDA
margins owing to the competitive environment and an inability to
implement an optimal pricing strategy for its service offerings.
The company's inability to maintain strong profitability metrics
could lead S&P to revise down its business risk assessment.  S&P
could also consider a downgrade if DomusVi is unable to generate
positive free cash flow, or faces potential liquidity and
structural operational problems.  Such issues could include an
increasing mismatch between reimbursement receipts, projected
volume growth, and operating costs, given DomusVi's high fixed-
cost base, which could lead to a sustained deterioration of the
adjusted fixed-charge coverage ratio to below 1.3x.

S&P considers a positive rating action unlikely over the next 12
months because it projects that DomusVi's core debt-protection
metrics are likely to remain commensurate with a "highly
leveraged" financial risk profile.  This is underpinned by the
company's substantial debt levels in the capital structure and
significant lease obligations required to carry out its core
daily operations.  However, S&P could take a positive rating
action if DomusVi improved and maintained its fixed-charge
coverage ratio higher than 2.2x.


EPHIOS BONDCO: Fitch Affirms 'B(EXP)' LT Issuer Default Rating
--------------------------------------------------------------
Fitch Ratings has affirmed France-based clinical laboratory
services group Ephios Bondco PLC's (Ephios) Long-term Issuer
Default Rating (IDR) at 'B(EXP)' with a Stable Outlook. Ephios is
the holding company of Labco SA (Labco) whose 'B+' IDR remains on
Rating Watch Negative.

The rating action follows the announcement of the acquisition of
synlab Holding GmbH (Synlab), another clinical diagnostics
laboratory group, by Ephios' shareholder Cinven, and the planned
merger of Synlab and Ephios. The acquisition comes just a month
after Cinven's announced purchase of Ephios. Ephios Holdco II PLC
(Ephios Holdco) has been set up as the new holding company of the
enlarged Ephios, including Synlab.

The acquisition of Synlab is to be financed with a tap on Ephios'
2022 senior secured notes, new senior notes to be issued by
Ephios Holdco and additional equity provided by Cinven. Therefore
the expected rating on Ephios' EUR800 million senior secured
notes due 2022 (increased to EUR1.475 billion by the planned tap)
has been affirmed at 'B+(EXP)'/'RR3'. Fitch has further assigned
Ephios Holdco's planned EUR375 million senior notes due 2023 a
'CCC+(EXP)'/'RR6' rating. Ephios' super senior revolving credit
facility (RCF) - rated 'BB-(EXP)'/'RR2' has been placed on Rating
Watch Positive (RWP).

Following the completion of the acquisitions of Ephios and
Synlab, and the merger of the two, the IDR of 'B(EXP)' will
likely be affirmed and transferred from Ephios to Ephios Holdco,
the new top holding entity within the enlarged restricted
borrowing group. Fitch also expects to rate the 2022 senior
secured notes including the tap issue at 'B+'/'RR3' and an
enlarged super senior RCF at 'BB'/'RR1', one notch above the
current rating of 'BB-(EXP)'/'RR2'.

The IDR reflects the combined group's aggressive financial
profile and in particular a high funds from operations (FFO)
lease-adjusted gross leverage close to 8.0x at closing of the
proposed merger. While Fitch believes such high leverage is more
commensurate with a low single 'B' IDR, the affirmation is
supported by the enlarged scale of the combined business, a
broader range of tests available, Ephios Holdco's leading
positions in key markets and geographical diversification.

The assignment of the final ratings and resolution of the rating
watches are contingent on the completion of the acquisitions of
Ephios and Synlab and consequently their merger, the receipt of
final documents materially conforming to information already
reviewed and the publication of audited consolidated statements
for the combined group.

KEY RATING DRIVERS FOR THE IDR

Weak Financial Metrics

The proposed capital structure backing the acquisition of Synlab
and its merger with Ephios maintains a high FFO adjusted gross
leverage close to 8.0x. Fitch believes such high leverage is not
commensurate with a 'B' IDR, notwithstanding the combined group's
deleveraging capacity driven by our expectations of positive free
cash flow (FCF).

"We also expect FFO fixed charge cover to improve mildly from our
forecast low point of around 1.7x post-merger. These metrics are
weak relative to peers including Cerberus Nightingale 1 SA
(Cerba; B+/Negative) and Quest Diagnostics Inc. (BBB/Stable)."

Moderate Deleveraging Prospects

The rating conservatively assumes that Ephios Holdco will
continue with Ephios' and Synlab's respective consolidation
strategies of sourcing and executing low-risk bolt-on
acquisitions of laboratories at attractive multiples and
extracting synergies, driven by the fragmented nature of the
European laboratory testing market and weak organic growth
prospects. As a result Fitch expects FFO adjusted gross leverage
to only gradually reduce to below 7.0x by 2017, a level
compatible with an IDR of 'B' for the sector. Any large,
transformational M&A would be considered as event risk.

Leader in European Laboratory Services

The rating reflects the enlarged group's market position as the
largest clinical laboratory services group in Europe in revenue.
The planned combination of Ephios and Synlab will expand Ephios'
existing presence and place the combined entity as a top-three
market player in its core markets. It will reduce the exposure to
single healthcare systems and therefore help strengthen the
resilience of cash flows and earnings.

Steady Profitability

"The merger would slightly dilute Ephios' legacy EBITDA margin as
Synlab has significant exposure to a lower-margin market
(Germany). We believe that the combined group is somewhat reliant
on extracting cost savings from this greater scale, which may be
limited due to little overlap between Ephios' and Synlab's
existing operations. As a result we only expect a mild
improvement in profitability by 2017," Fitch said.

Subdued Organic Performance

Fitch expects the pricing environment to remain challenging in
Ephios Holdco's key markets, namely Germany (29% of 2014 pro
forma sales), France (24%), Italy (12%), Spain (8%) and
Switzerland (8%). Sustained reimbursement pressures by ultimate
payers such as governments and insurance companies are likely to
constrain organic growth prospects in the medium term.

As volumes have proven resilient to economic cycles, underpinned
by broadly favorable demographics and socio-economic factors,
Fitch expects larger players, such as Ephios Holdco, to withstand
the negative impact of tariff pressure on their profitability.

KEY RATING DRIVERS FOR THE INSTRUMENTS

Weak Creditor Protection

Upon completion of the transaction, the proposed super senior RCF
and the senior secured notes (including the tap issue) will share
the same security package, primarily comprising share pledges
over Ephios Bondco Plc, Ephios France SAS, Ephios Acquisition
GmbH as well as over subsidiaries representing around 60% of the
consolidated EBITDA as of end-March 2015.

The senior notes issued by Ephios Holdco, however, will benefit
from a junior-ranking share pledge over the same entities. The
super senior RCF will include a single leverage covenant while
the senior secured notes and the senior notes are protected by
incurrence-based covenants, subject to permitted baskets.

Going Concern Distressed Valuation

"We expect a going-concern restructuring to yield stronger
recoveries for creditors than liquidation in a default scenario.
We assume a distressed sale of the group as a whole at Ephios
Holdco or possibly Ephios Bondco level as a liquidation of
individual labs could prove challenging given laboratory
ownership regulatory constraints in various European
jurisdictions, in particular clinical pathologists' pre-emptive
rights in France. Therefore, we have valued the group on the
basis of a 6.0x multiple applied to an EBITDA that is 20% below
the last 12-month combined EBITDA as of end-March 2015, factoring
in acquisitions already completed and adding back UK operations'
start-up costs," Fitch said.

Poor Recoveries for Holdco's Noteholders

The expected ratings of 'CCC+(EXP)'/'RR6' for Ephios Holdco's
planned senior notes reflect poor recovery prospects for
noteholders in a default scenario given their subordination to
the super senior RCF and certain other obligations of non-
guarantor subsidiaries as well as the enlarged senior secured
notes in the debt waterfall.

"We have placed the super senior RCF on RWP and expect to rate it
at 'BB'/'RR1' upon completion, assuming full recoveries given its
fairly small share and its seniority in the debt waterfall as we
believe Germany will be the group's "Centre of Main Interest"
instead of France," Fitch said.

KEY ASSUMPTIONS

Fitch's expectations are based on the agency's internally
produced, conservative rating case forecasts. They do not
represent the forecasts of rated issuers individually or in
aggregate. Key Fitch forecast assumptions include:

-- Low to mid-single digit organic growth in key markets;

-- Impact of launch of UK activities, strikes in France and
    increase of VAT in Spain on 2015 EBITDA and FFO margins;

-- EBITDA margin improving towards 20% by 2017 (post-merger:
    18%), due to cost savings and economies of scale achieved
    from the enlarged group;

-- Up to EUR100 million of bolt-on acquisitions per year after
    2015;

-- No dividends paid

RATING SENSITIVITIES

Positive: Future developments that could, individually or
collectively lead to a positive rating action include:

-- Meaningful deleveraging such that FFO adjusted gross leverage
   (pro forma for further bolt-on acquisitions) falls to 6.5x,
    combined with FFO fixed charge cover improving towards 2.0x;

-- Positive FCF as a proportion of sales sustainably in the mid
    to high single digits;

-- More conservative financial policy reflected in lower debt-
    funded M&A spending, or growth funded more conservatively by
    existing cash flows or equity funds.

Negative: Future developments that could, individually or
collectively lead to a negative rating action include:

-- FFO adjusted gross leverage (pro forma for acquisitions)
    above 8.0x on a sustained basis;

-- FFO fixed charge cover (pro forma for acquisitions) below
    1.3x on a sustained basis;

-- EBITDA margin below 17% due to failure to extract synergies
    and higher-than expected integration issues;

-- FCF margin falling to slightly positive territory while
    maintaining a debt-funded acquisition strategy;

-- Large, debt-funded and margin-dilutive acquisitions, combined
    with profitability erosion in key markets, reflecting a more
    challenging operating environment.

LIQUIDITY AND DEBT STRUCTURE

"We expect Ephios Holdco's liquidity to be satisfactory. Under
the proposed capital structure, Ephios Holdco will have access to
the enlarged super senior RCF of EUR250 million, which can be
used for general corporate purposes as well as for bolt-on
acquisitions. The combined group has no meaningful debt
maturities before 2022 and 2023, which will allow it and Cinven
to focus on a successful strategy execution," Fitch said.


EPHIOS HOLDCO II: S&P Assigns Prelim. 'B+' CCR, Outlook Stable
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
preliminary 'B+' long-term corporate credit rating to Ephios
Holdco II PLC, a holding company for the consolidated European
laboratory businesses of Synlab and Labco.  The outlook is
stable.

At the same time, S&P assigned a preliminary issue rating of 'B-'
to the EUR375 million proposed senior unsecured notes to be
issued by Ephios Holdco II.  S&P also assigned a recovery rating
of '6' to the proposed debt, reflecting its expectation of
negligible (0%-10%) recovery for debtholders in the event of a
payment default.

S&P also affirmed the preliminary 'B+' long-term corporate credit
rating on Ephios Bondco PLC, the parent holding company of Labco,
and the preliminary 'B+' long-term issue rating on its proposed
senior secured notes of EUR1,475 million due in 2022, which
includes a tap issuance of EUR675 million.  The recovery rating
on the notes is '4', indicating S&P's expectation of average
(30%-50%) recovery in the event of a payment default.

The ratings on the proposed debt are subject to S&P's review of
the final documentation.

S&P affirmed its 'B+' long-term corporate credit rating on Labco
S.A. and the 'B+' issue rating on Labco's existing EUR700 million
senior secured notes due in 2018.  The recovery rating on the
notes is '4', indicating S&P's expectation of average (30%-50%)
recovery in the event of a payment default.

The rating actions follow private equity firm Cinven's
acquisition of German laboratory operator Synlab.  As part of the
acquisition, a new holding company called Ephios Holdco II PLC
has been created above the existing Ephios Bondco PLC, which is
the parent of Cinven's other laboratory business, France-based
Labco.  Under the proposed transaction, Ephios Holdco II and
Ephios Bondco will both raise new debt to fund the acquisition of
Synlab.

S&P views Ephios Holdco II as the new parent company for the
group.  S&P equalizes its rating on Ephios Holdco II with that on
Ephios Bondco.

S&P considers Ephios Bondco to be a "core" group entity under
S&P's group rating methodology because:

   -- It is unlikely to be sold, in S&P's view;
   -- It has the same management team as Ephios Holdco II; and
   -- Incentives exist to induce strong support from senior group
      management in good times and under stressful conditions.

S&P views Ephios Holdco II's business risk profile as
"satisfactory" and its financial risk profile as "highly
leveraged," based on S&P's consolidated assessment of the Synlab
and Labco businesses.  They are the same as S&P's assessments for
Ephios Bondco PLC.  These lead to an anchor -- S&P's starting
point for assigning an issuer credit rating under its corporate
criteria -- of 'b+'.  The anchor is not affected by any of S&P's
analytical modifiers.

S&P understands that Ephios Holdco II will use the proposed
senior secured notes, senior unsecured notes, and revolving
credit facility (RCF) to finance the acquisition of Synlab
Holding GmbH.

The combination of Labco and Synlab under Ephios Bondco PLC will
create one of the biggest clinical laboratory operators in
Europe. S&P has revised its assessment of the business risk
profile upward to "satisfactory" from "fair."  The pan-European
presence will improve geographic diversification, as overlap
between Synlab and Labco is minimal.  S&P views the laboratory
market as very fragmented with low barriers to entry, which could
lead to stiffer competition, but this will be mitigated by the
group's size advantages, the realization of synergies, and its
leading positions in key markets, which are reflected in S&P's
assessment of its competitive position as "satisfactory," as
defined in S&P's criteria.

Furthermore, S&P expects Synlab and Labco to maintain stable
EBITDA margins on a consolidated basis, as negative pricing
trends would be offset by synergies S&P expects to be derived
from the integration of the acquired entities.  S&P's business
risk assessment also incorporates its view of the global health
care services industry risk as "intermediate" and the laboratory
operators' consolidated country risk -- which the Synlab
acquisition has helped to improve -- as "low."

Health care is subject to strict regulation in most European
countries, which exacerbates pricing pressures.  Because the
clinical laboratory market is not materially different in this
respect, the consolidated laboratory business will likely have to
adapt its cost structures to accommodate the lower selling
prices. Given that Labco and Synlab were consolidators in their
respective markets, S&P thinks that the combined entity is in a
better position to absorb lower prices than smaller laboratories.
However, they will likely face increasing exposure to regulatory
actions.  Apart from price regulation, a further challenge could
come from limits on reimbursement for diagnostic tests, as
governments seek to manage budgetary constraints.  This could
mean greater out-of-pocket contributions from patients and
consequently a lower demand for standard tests.

"Our assessment of the financial risk profile as "highly
leveraged" reflects the overall acquisitive business model of
Synlab and Labco, which relies on aggressive external growth and
has led to high debt.  Based on the new capital structure, we
expect debt to EBITDA to be about 5x-6x in 2015-2017.  Our
leverage calculation for 2015 includes the proposed EUR1,475
million senior secured notes (including the tap issuance of
EUR675 million for the Synlab acquisition), EUR375 million senior
unsecured notes, and EUR145 million of adjustments for operating
leases and post-retirement obligations.  Owing to the financial-
sponsor ownership, we do not net any cash at Ephios Bondco from
our calculation of debt.  Due to the long-dated maturity of
Ephios Bondco's proposed senior secured and unsecured notes and
the group's acquisitive strategy, leverage is more likely to
improve through higher profitability than debt reduction.
Assuming that the acquisitions are profitable from the start, we
estimate that the group will maintain an average adjusted funds
from operations (FFO) cash interest coverage of above 2.5x over
the next three years, which supports the rating," S&P said.

"In our view, the combination of the two laboratory operators
should mean high operating margins and relatively low capital
expenditure (capex) requirements, leading to sustained free
operating cash flow.  We expect this trend to continue, with the
company generating EUR100 million-EUR175 million of free
operating cash flow in 2016 and 2017," S&P added.

"The affirmation of our rating on Labco reflects our view that
the company is not materially affected by the proposed
transaction on a stand-alone basis.  We continue to assess its
business risk profile as "fair" and its financial risk profile as
"highly leveraged."  The rating incorporates an upward adjustment
to the anchor for our positive comparable rating analysis,
reflecting our view that its credit metrics are relatively strong
for the "highly leveraged" category," S&P noted.

S&P's base case for Ephios Bondco and Ephios Holdco II, based on
the consolidated Labco and Synlab businesses, assumes:

   -- Eurozone GDP to grow by 1.6% in 2015 and 1.9% in 2016,
      reflecting an overall decline in unemployment, faster wage
      growth, and higher domestic demand.

   -- Labco and Synlab's combined revenue forecasts to show
      limited correlation with underlying macroeconomic data, as
      the companies' sales are predominantly driven by external
      growth.

   -- Consolidated EBITDA margins to be flat in 2015 over 2014 as
      Synlab is a lower margin business than Labco.  But in 2016
      S&P expects EBITDA margins to grow as synergy benefits are
      realized, mainly related to better procurement and cost
      leadership positions thanks to economies of scale.

   -- Capex of EUR25 million in 2015 and EUR45 million in 2016.

   -- No shareholder remuneration for the next few years at
      least, based on the financial policy of the new financial
      sponsors.

   -- EUR1.75 billion acquisition spending for Synlab in 2015 and
      bolt-on acquisitions of EUR100 million in 2016.

   -- EUR675 million tap on the existing senior secured notes of
      Ephios Bondco, issuance of EUR375 million senior unsecured
      notes at Ephios Holdco II, and a EUR756 million additional
      preference equity injection that S&P treats as equity
     (based on its criteria for the treatment of non-common
      equity financing) to fund the acquisition of Synlab.

   -- EUR62 million transaction cost for the acquisition of
      Synlab.

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

   -- An adjusted debt-to-EBITDA ratio of above 5x on average
      over the next three years.

   -- Adjusted FFO cash interest coverage of above 2.5x on
      average over the next three years.

The stable outlook on Ephios Bondco, Ephios Holdco II, and Labco
reflects S&P's view of Labco and Synlab's sound positions as
consolidators of small companies in a growing underlying market.
It also factors in the companies' cash-generating capacity, as
further potential external growth opportunities could be turned
around quickly by streamlining costs and overheads.  S&P
considers that FFO cash interest coverage of above 2x on a
sustainable basis should enable the company to adequately service
its debt liabilities and other fixed charges.  S&P views this
level of debt service coverage, combined with stable and
improving free cash flow generation, as commensurate with S&P's
'B+' rating.

In S&P's opinion, a positive rating action is unlikely over the
next 12-18 months due to the group's high adjusted leverage.
However, S&P could consider a positive rating action if the new
sponsors commit to a financial policy that results in a leverage
ratio of below 5x and FFO cash interest coverage of more than 3x
on a sustainable basis.

S&P could lower the rating if the group experiences a significant
decline in its operating performance and profitability, which
could cause S&P to review its assessment of its business risk
profile.  The most likely reason for such a decline would be
deteriorating operating margins, because of Synlab and Labco's
inability to effectively integrate or following a loss of key
accounts.  S&P could also lower the rating if the companies'
ability to comfortably service their fixed costs deteriorates.
This could occur as a result of lower realizable growth during
the next few years or a more aggressive financial policy.


HOMEVI SAS: Moody's Ups Corp. Family Rating to B1, Outlook Stable
-----------------------------------------------------------------
Moody's Investors Service upgraded HomeVi S.a.S. corporate family
rating to B1 from B2 and probability of default rating (PDR) to
B1-PD from B2-PD.  Concurrently, Moody's has upgraded the rating
on the senior secured notes due 2021 to B2 from B3.  The rating
outlook is stable.

The rating action concludes the review for upgrade initiated on
June 16, 2015, after Moody's announced a revised methodology for
the capitalization of operating leases.  The rating action also
follows HomeVi's announcement that it intends to issue additional
EUR125 million 6.875% senior secured notes under the existing
indenture.

These additional notes proceeds along with the new equity of
EUR90 million provided by current shareholders in the form of
common stock and convertible bonds will be used to (i) finance
the EUR210 million acquisition of Inversiones Socicare, S.L.
(Geriatros, the third-largest private nursing homes operator and
leader in the private mental care market in Spain) and (ii) cover
acquisition-related fees of EUR6 million, and (iii) potentially
refinance a portion of Geriatros' debt of EUR5 million.  HomeVi
will also assume existing EUR57 million debt at Geriatros.

As part of the acquisition, HomeVi will also increase its super-
senior revolving credit facility (RCF) to EUR90 million from
EUR60 million.  The RCF is expected to be undrawn at close.

The upgrade reflects a reduction in Moody's adjusted leverage to
4.8x in 2015 (pro forma for six-month contribution from
Geriatros) from 6.3x in 2014, which is mostly driven by a
reduction in capitalized operating leases representing a
significant amount of Moody's adjusted debt.

RATINGS RATIONALE

HomeVi's CFR of B1 reflects (1) limited deleveraging prospects
given Moody's expectations for modest organic growth; (2) the
company's exposure in France to a highly regulated sector, with
respect to fee rates for existing residents, reimbursement levels
for medical care or dependency and authorization requirements,
also in the context of public budget constraints; (3) the
sensitivity to the French economic environment and ultimately to
the household disposable income as the majority of the company's
accommodation services are paid by private individuals; (4) the
high operating leverage driven by a primarily fixed cost base
structure mainly including personnel and rental expenses though
most of personnel expenses relate to care and dependency expenses
that are covered by the French public administration; (5) the
exposure to the politic and economic situation in Spain,
particularly, in the autonomous region of Galicia after the
proposed acquisition of Geriatros.

Conversely, HomeVi 's CFR of B1 is supported by (1) its market
leading position in the fragmented French nursing home sector
(number three private operator nationwide by number of
facilities, beds and revenue) with significant presence in
affluent areas (e.g., Greater Paris, Bordeaux-Toulouse, Greater
Lyon and the French Riviera) with strong demographic needs, long-
standing sector expertise, and no significant concentration of
revenues across its facilities; (2) the growth achieved over the
period 2011-14 particularly in its mature medical homes estate;
(3) the attractive features of the French nursing home sector
characterized by positive demand trends driven by socio-
demographic dynamics and barriers to entry introduced in 2010 by
a new regulatory framework that has accentuated the mismatch
between supply and demand as evidenced by the high occupancy
rates across the industry particularly amongst private operators;
and (4) the growing proportion of protective benefits in Spain as
percentage of GDP, which should benefit HomeVi after the
acquisition of Geriatros.

Moody's believes that the acquisition of Geriatros will improve
HomeVi's geographical diversification and its ability to expand
into other markets.  It will also improve HomeVi's product
diversification by adding the mental health homes segment to the
portfolio.  On the other hand, the acquisition of Geriatros will
expose the company to economic and political risks in Spain,
especially in Galicia, where Geriatros generated 57.7% of
revenues and 67.2% of EBITDA in LTM December 2014.

Moody's believes that there is a certain degree of stability in
HomeVi's revenue line because of the favorable demand trends both
in Spain and in France and the trade-off between supply and
demand.  However, organic growth relies upon the company's
ability to continue to improve occupancy rates and increase daily
fee rates given the predominantly high fixed cost base.

Pro-forma for the acquisition, Moody's adjusted debt-to-EBITDA
(mainly for operating leases) will be about 4.8x in 2015 and 4.4x
in 2016 because of the full year contribution of Geriatros.  In
light of slow adjusted EBITDA growth and lack of debt
amortization, Moody's does not expect the company to materially
deleverage over the next 12 to 18 months.  In addition, Moody's
expects the company to continue its policy of selectively
acquiring bed authorizations and/or smaller operators and might
use different forms of financing for this.  Such plans may have a
further negative impact on the company's free cash flow
generation and on its deleveraging profile.

HomeVi's liquidity profile is good, supported by approximately
EUR32.1 million of cash available at closing, and by the EUR90
million undrawn super senior RCF.  Moody's expects HomeVi to
generate positive free cash flow and have minimal debt
amortizations.  The RCF has a net leverage maintenance covenant,
set with ample headroom (drawn Super Senior RCF Net Debt to
EBITDA shall not exceed 1.4x), which acts as a draw-stop only and
is tested on a quarterly basis when the outstanding amount under
the super senior RCF exceeds 25% of the total commitment.

The B1-PD is line with the CFR reflecting an assumption of a 50%
family loss given default.  Both the senior secured notes and the
super-senior RCF benefit from limited security, with the RCF
having prior ranking following enforcement.  The B2 rating of the
senior secured notes one notch below the CFR reflects their
structural subordination to all operating companies' liabilities
including significant operating leases in light of restrictions
to upstream guarantees (consistent with traditional French
financial assistance-driven limitations), combined with their
contractual ranking behind the RCF.  Separately, Moody's notes
the presence of EUR45 million payment-in-kind (PIK) bonds due
2022 outside the restricted group, which have been excluded from
the debt calculations as they are not guaranteed by HomeVi and do
not have creditor claims on the restricted group.

The stable rating outlook incorporates Moody's expectation that
the company will be able to successfully deliver organic growth,
whilst maintaining a solid liquidity profile.  The stable rating
outlook does not factor in any material debt-financed
acquisitions, dividends, nor any material increase in capex.

WHAT COULD CHANGE THE RATING UP

An upgrade would require a sustained reduction in leverage such
that adjusted debt-to-EBITDA falls below 4.0x with free cash flow
generation remaining positive, and EBITA/interest moving above
2.5x.

WHAT COULD CHANGE THE RATING DOWN

Negative pressure could occur in the event of adjusted debt-to-
EBITDA increasing on a sustained basis above 5.0x; or increasing
margin pressure resulting in EBITA/interest falling below 1.5x.
A weakening of the liquidity profile could also result in a
downgrade.

PRINCIPAL METHODOLOGIES

The principal methodology used in these ratings was Global
Healthcare Service Providers published in December 2011. Other
methodologies used include Loss Given Default for Speculative-
Grade Non-Financial Companies in the U.S., Canada and EMEA
published in June 2009.

Headquartered in France, HomeVi S.a.S. is the third largest
private nursing homes operator in terms of revenue, number of
authorized beds and facilities in France, primarily in Greater
Paris, Bordeaux-Toulouse, Greater Lyon and the French Riviera
regions.  HomeVi is the parent company of DomusVi and the issuer
of the senior secured notes.  DomusVi was founded by Yves Journel
in 1983 and merged on January 2011 with Dolcea-GDP Vendome
(founded in 1989).  PAI Partners and other co-investors including
ICG and DV France acquired DomusVi on July 1, 2014 via HomeVi.
In 2014, HomeVi's revenues were EUR669.9 million (on a pro forma
basis).



=============
G E R M A N Y
=============


MUNICH HOLDINGS: S&P Raises Corp. Credit Rating to 'B+'
-------------------------------------------------------
Standard & Poor's Ratings Services said that it has raised its
long-term corporate credit rating to 'B+' from 'B' on Munich
Holdings Corporation II S.a.r.l. (Munich Holdings) and one of its
core subsidiaries, Germany-based plastics and rubber-processing
machinery manufacturer KraussMaffei Group GmbH (KraussMaffei
Group, and collectively with its subsidiaries "the group").  The
outlook is stable.

At the same time, S&P raised to 'B' from 'B-' our issue rating on
the group's existing EUR260 million senior secured notes.  The
'5' recovery rating remains unchanged and indicates S&P's
expectation of modest (10%-30%; lower end of the range) recovery
in the event of a payment default.

The rating actions reflect KraussMaffei Group's robust operating
and financial performance throughout 2014 and in the first
quarter of 2015, which allowed the group to reduce debt to EBITDA
to about 4.0x at the end of 2014 from 7.6x at end-2013.  The
improvement in earnings was driven by volume growth and the
non-recurrence of purchase price accounting effects that burdened
earnings in 2013 -- the first year after its buyout to private
equity owner Onex. Also, at end-2014, KraussMaffei Group made an
early redemption of 10% of its EUR325 million notes that led to a
slight deleveraging. The group had redeemed another EUR32.5
million effective July 13, 2015.  S&P had previously assumed only
moderate deleveraging, mainly due to its expectations of lower
volumes and earnings.

S&P projects that the group will continue to post a solid
operating performance over the coming years, supported by
generally supportive end-market conditions in automotive,
packaging, and infrastructure markets globally.  S&P believes
that this should allow KraussMaffei Group to show moderately
improving metrics with debt to EBITDA remaining below 4.5x and
funds from operations (FFO) to debt stronger than 15%, which S&P
considers in line with the 'B+' rating.

S&P believes that the business risk profile remains restricted by
KraussMaffei Group's operations in the highly competitive and
cyclical plastics and rubber-processing machinery industry, as
well as the group's weak and volatile, although improving,
operating profitability.  S&P notes that the group's current
adjusted EBITDA margin of about 11% is still well below the
companies that S&P considers to be its closest peers -- Milacron
and Husky, which generate margins in the mid and high teens,
respectively.  In S&P's opinion, the business risk assessment is
also restricted by KraussMaffei Group's relatively low share of
aftermarket operations, representing about 20%-25% of sales, when
compared with peers in the wider capital goods industry.  A
higher share of such operations could offset some of the
cyclicality in new machinery sales, in S&P's view.

On the positive side, S&P sees that the group has well-
established market positions in Europe and a broad product
offering.  S&P's assessment is also supported by the broad
geographic diversity of the group's revenue generation.  This is
particularly because S&P expects growth prospects in emerging
markets to remain better than in KraussMaffei Group's domestic
European market over the longer term.  However, S&P believes the
group would find it difficult to achieve similar diversification
of its production operations in the near term, which are mainly
in Europe.  Nevertheless, S&P notes that the group continues to
shift its production facilities to low cost countries.

Although S&P views positively the group's early redemption of
EUR65 million under its EUR325 million bond, which led to debt
metrics that are more in line with S&P's "aggressive" financial
risk category, it continues to think that the group has a "highly
leveraged" financial risk profile.

However, S&P accounts for the group's relatively strong metrics
by applying a one-notch uplift to the anchor for its "positive"
comparative ratings analysis.

Similarly, the combination of S&P's "weak" business risk and
"highly leveraged" financial risk profiles leads S&P to start
with either a 'b' or 'b-' anchor.  S&P chooses the higher of the
two possible anchors since it considers the group's financial
profile to be strong for S&P's "highly leveraged" category.

S&P continues to view the group's financial risk profile as
"highly leveraged" primarily because S&P sees some risk of the
group entering into a refinancing transaction once the bond is
callable at the end of 2015, which could leave the group with
higher leverage post-transaction.  Should any potential
transaction be structured in a way that debt to EBITDA remains
markedly below 5x, S&P would likely change the financial risk
profile to "aggressive."  Depending on the relative strength of
the financial risk profile, S&P could then decide to reassess the
comparative rating modifier as "neutral," which would not impact
the rating.

Furthermore, continued improvements in the group's operating and
financial performances, absent any sizable or debt-funded
acquisitions, may lead S&P to classify the financial risk profile
to "aggressive" over time.

The stable outlook reflects S&P's view that KraussMaffei Group
will sustain its good operating trend and that past efficiency
improvement initiatives should enable the group to maintain its
EBITDA margin at least in line with the level in 2014, when it
showed a reported EBITDA margin of about 10%.  Absent any
acquisitions or significant shareholder remunerations, a steady
BITDA margin should enable the group to post debt metrics in line
with the current rating.  For KraussMaffei Group, S&P considers
ratios of adjusted debt to EBITDA of lower than 4.5x and FFO to
debt of more than 15% to be consistent with S&P's 'B+' rating.

S&P does not envisage raising the rating during the next year.
S&P could do so, however, if the group demonstrated a prudent
financial policy and continued to deleverage, and if S&P believed
that its ratio of adjusted debt to EBITDA would stay sustainably
below 4.0x, with FFO to debt sustainably higher than 20%.

S&P does not envisage a negative rating action during the next
year, but a downgrade could stem from an unexpected aggressive
debt-funded acquisition or shareholder returns, or from an
unforeseen material setback in operating performance, which could
materially weaken the group's credit measures or liquidity.  For
example, this would occur if the ratio of adjusted debt to EBITDA
increased to above 4.5x on a sustained basis.


TELE COLUMBUS: Moody's Affirms B2 CFR & Changes Outlook to Stable
-----------------------------------------------------------------
Moody's Investors Service affirmed the B2 corporate family rating
and the B2 bank loan ratings of Tele Columbus AG.  Concurrently,
Moody's has upgraded to B2-PD from B3-PD the company's
probability of default rating (PDR).  At the same time, Moody's
changed the outlook on all ratings to stable from positive.

The rating actions follow the announcement that Tele Columbus has
entered into an agreement to acquire PrimaCom, Germany's 4th
largest cable operator, for a total enterprise value of EUR711
million on a cash and debt free basis.  The purchase price
represents a multiple of 11x pre-synergies, based on PrimaCom's
2015 expected EBITDA.  The transaction closing is expected on 31
July 2015, as the deal does not need regulatory approval and is
not subject to merger control review given that the companies'
combined revenues are under EUR500 million.

"The change in outlook to stable from positive reflects that
while the acquisition of PrimaCom makes strategic sense and
enhances Tele Columbus' business risk profile, at this stage the
increase in leverage associated with this deal more than offsets
its scale and synergy benefits", says Christian Rauch, a Moody's
Senior Vice President and lead analyst for Tele Columbus.

Moody's has upgraded the company's PDR to B2-PD in anticipation
of a more complex capital structure after this acquisition, with
the company's indication that it will use a combination of first
lien and second lien debt to fund the transaction.  As a result,
the family recovery rate assumption has changed from 65% to 50%.
The change in PDR does not result in any debt instrument rating
change.

RATINGS RATIONALE

Moody's has changed the outlook on Tele Columbus's ratings to
stable from positive, mainly as a result of the increased
leverage resulting from the high-multiple acquisition of
PrimaCom, which removes the existing upward pressure on the
rating in the short term.  Moody's had previously acknowledged
the reduction in Tele Columbus's adjusted debt owing to changes
in Moody's approach for capitalizing operating leases (in press
release published on June 17, 2015, when Moody's changed the
outlook on Tele Columbus to positive).

Tele Columbus plans to fund the deal through a combination of
cash on balance sheet, a fully underwritten financing (including
both a senior and junior tranche) and a EUR125 million equity
bridge loan.  The equity bridge financing and potentially a
proportion of the debt financing will be taken out by an equity
rights issue and/or other equity and equity-like measures, which
are planned to be conducted in H2 2015.

Post-transaction, Moody's expects that Tele Columbus adjusted
leverage as measured by Moody's debt/EBITDA ratio will increase
to approximately 5.2x from around 4.3x as of March 2015, assuming
a successful completion of the envisaged equity financing.  The
company will also significantly exceed its own publicly stated
medium term net debt/EBITDA target range of 3.0-4.0x at about
5.0x post equity issuance, but aims to return to its target
corridor within 18-24 months following the closing of the
acquisition.

While the company's liquidity profile will weaken because of the
use of cash on balance sheet to fund the deal, Moody's derives
comfort from the fully underwritten nature of the financing
package and the continued availability of the company's EUR50
million revolving credit facility.

Despite the increase in leverage resulting from this deal,
Moody's notes that the acquisition of PrimaCom also brings
substantial benefits.  Following this deal, Tele Columbus will
strengthen its position as the third largest player in the German
cable market, with around 2.8 million combined homes connected.

In addition, the combined entity will benefit from material
synergies due to the network overlap in approximately 30% of
their footprint and similar housing association customer bases.
Tele Columbus estimates that the combination will generate annual
run-rate cost synergies of EUR17.5 million and capex synergies of
EUR2.5 million, to be fully realized by 2017.  While
acknowledging the good synergy potential, Moody's considers the
company's synergy target ambitious.

Tele Columbus's B2 CFR reflects (1) the increased leverage
following the acquisition of PrimaCom; (2) the potential for
additional M&A opportunities in the German cable market, which
result in some event risk; (3) the challenge to reignite growth
in its "homes connected" base after years of decline; (4)
dependence on third-party network provision, in particular for
signal provision in the portion of Tele Columbus's network where
the company is only a Level 4 provider; (5) pricing pressure and
competition from larger telecoms players (Kabel Deutschland,
Deutsche Telekom AG) especially for larger housing association
contracts; and (6) increased competition in the provision of
premium TV programming from both established (Sky Deutschland)
and new (OTT providers like Maxdome or Netflix, Inc.) operators.

However, the rating also factors in (1) the increased scale and
synergy benefits resulting from the acquisition of PrimaCom; (2)
the company's increased financial and operational flexibility
post IPO; (3) its credible and clearly defined strategy; (4) Tele
Columbus's solid and entrenched market position, especially in
its core Eastern Germany territories; (5) the favorable operating
conditions for cable companies in Germany based on the
technological advantages of HFC networks in the provision of
broadband services; (6) the state-of-the-art quality of the fully
owned and upgraded portion of the company's network; and (7) good
cost control which has allowed for increased EBITDA generation
over the past couple of years, notwithstanding lackluster top-
line growth.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Tele Columbus's weakly positioned
credit metrics in the wake of the PrimaCom acquisition, balanced
with Moody's expectation that the company will reduce leverage
and return to its own medium term financial leverage target.  The
stable outlook assumes that in the event of further acquisitions
of German cable assets, the company will fund those in a
leverage-neutral manner.

The stable outlook also reflects Moody's view that the company's
revenue growth guidance of 4%-6% for the full fiscal year 2015
with some EBITDA margin expansion is broadly achievable.

WHAT COULD CHANGE THE RATING - UP/DOWN

Evidence of continued operating progress including a return to
growth in the "homes connected" base, together with a debt/EBITDA
ratio maintained sustainably below 4.5x is likely to result in
upgrade pressure.

Downward pressure for the rating or outlook could ensue in case
of (1) a more than temporary deterioration of Tele Columbus'
debt/EBITDA leverage ratio to a level above 5.5x; (2) a failure
in strategy execution e.g., RGU per subscriber and ARPU growth
stall; or (3) the company experiencing a continued deterioration
in the "homes connected" base.

The principal methodology used in these ratings was Global Pay
Television - Cable and Direct-to-Home Satellite Operators
published in April 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.

Tele Columbus AG is a holding company, which through its
subsidiaries offers basic cable television services (CATV),
premium TV services and, where the network is migrated and
upgraded, Internet and telephony services in Germany where it is
the third largest cable operator.  The company is based in
Berlin, Germany, and reported revenue of EUR214.3 million for the
last twelve months period to March 31, 2015.



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


GREECE: Parliament to Vote on Bill for Euro Rescue Package
----------------------------------------------------------
The Irish Times reports that the Greek government submitted
legislation to parliament on July 21 required by its
international lenders to start talks on a multi-billion euro
rescue package.

Prime Minister Alexis Tsipras had until the evening of July 22 to
get those measures adopted in the assembly, The Irish Times
discloses.  A first set of reforms triggered a rebellion in his
party last week and passed only thanks to votes from pro-EU
opposition parties, The Irish Times relays.

The second bill, though less divisive, will still be a test his
weakened majority, The Irish Times notes.  It puts into Greek law
new European Union rules on propping up failed banks, decreed
after the 2008 financial crisis and aimed at shielding taxpayers
from the risk of having to bail out troubled lenders, The Irish
Times states.

The so-called bank recovery and resolution directive (BRRD)
imposes losses on shareholders and creditors of ailing lenders,
in a process known as "bail-in", before any taxpayers' money can
be tapped in a bank rescue, The Irish Times says.

According to The Irish Times, the bailout bill also includes the
adoption of new rules for the country's civil justice system,
aimed at accelerating lengthy judicial processes and cutting
costs.


GREECE: S&P Raises Sovereign Ratings to 'CCC+', Outlook Stable
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its foreign and local
currency long-term sovereign credit ratings on Greece (Hellenic
Republic) to 'CCC+' from 'CCC-'.  The 'C' short-term foreign and
local currency sovereign credit ratings were affirmed. The
outlook is stable.

As defined in EU CRA Regulation 1060/2009 (EU CRA Regulation),
the ratings on Greece are subject to certain publication
restrictions set out in Art 8a of the EU CRA Regulation,
including publication in accordance with a pre-established
calendar.  Under the EU CRA Regulation, deviations from the
announced calendar are allowed only in limited circumstances and
must be accompanied by a detailed explanation of the reasons for
the deviation.

In Greece's case, the deviation was prompted by the consent, in
principle, of the Eurogroup (euro area member state finance
ministers) to Greece's request for a three-year loan program
under the European Stability Mechanism (ESM), as well as the
disbursement on July 20 to Greece of EUR7.16 billion in bridge
financing, which the government has used to clear arrears with
the International Monetary Fund (IMF) and the Bank of Greece and
to repay EUR3.49 billion in Greek government bonds held by the
European Central Bank (ECB).  The deviation also follows the
reopening of Greek bank branches on July 20, and the ECB's
increase on July 16 in the ceiling on Emergency Liquidity
Assistance to Greece's financial sector.

RATIONALE

The upgrade reflects Greece's improved liquidity perspective
following last week's consent, in principle, from the Eurogroup
to the three-year loan program for Greece via the ESM, alongside
the provision of EUR7.16 billion in three-month bridge financing
to the Greek government, which it used on July 20 to clear its
arrears with the IMF and the Bank of Greece and to repay the ECB.

S&P consequently thinks that Greece's default on its stock of
commercial debt is no longer inevitable in the next six to 12
months.  Under the three-month bridge financing, Greece repaid
the ECB EUR3.49 billion on July 20 on schedule.  S&P still
considers that Greece's solvency over the next few years remains
dependent on favorable business, financial, and economic
conditions, and any forthcoming funding relief on its official
liabilities.  Greece's official obligations make up just under
three-quarters of Greece's sovereign debt (including Greece's
stock of treasury bills in total debt).

Greece's financial commitments appear to us to be unsustainable
over the long term, if and when the current official concessional
loans are replaced by market funding and the current interest
rate holiday on a significant part of Greece's debt to official
creditors lapses.

S&P believes the probability of Greece leaving the eurozone
remains higher than one in three but less than 50%, although S&P
thinks the agreement between Greece and its creditors announced
last week has reduced this risk.  The probability would increase
if Greece doesn't successfully implement the new ESM loan
program. S&P sees the risk of such non-implementation as high,
given the weakness of the economy, and the implications this
might have for further political and social instability.

S&P thinks opportunities for Greece to default on commercial debt
this year are few.  Redemptions owed on commercial debt this year
(from the present to end Dec. 31, 2015), excluding treasury
bills, amount to a single EUR176 million payment on a state-
guaranteed Hellenic Railway bond due in October.  For the last
seven months of 2015, interest payments on commercial debt
(including on the debt of Hellenic Railways and Athens Urban
Transportation Organisation) total EUR1.5 billion, or less than
1% of GDP. Consequently, S&P do not anticipate that Greece is
likely either to default outright on such commercial debt or to
engage in a distressed exchange offer to commercial creditors
within the next 12 months.

Still, the new three-year loan program appears to S&P more
onerous than the program that Greek voters rejected in the
referendum on July 5.

The Eurogroup's agreement, in principle, to Greece's request for
the new three-year ESM program, hinges on approval by eurozone
national parliaments and a list of prior actions to be legislated
by the Greek parliament.  The government has already legislated
on most of these prior actions.  Negotiating the new program
will, S&P anticipates, take at least a month.  S&P expects that
before the start of negotiations on a new memorandum of
understanding, Greece's parliament will approve additional prior
actions including judicial reform and the adoption of the EU
Directive on Bank Recovery and Resolution (BRRD).  However,
political backing for the reforms is only partial within the
governing Syriza party, raising the possibility that the
implementation of the new program could be interrupted by another
round of general elections (which would be the second this year,
and the fourth since May 2012), or by further weakening in
growth, financial stability, or both.  S&P notes that some
comments made by Prime Minister Alexis Tsipras and his finance
minister could suggest an absence of commitment to implement the
program.

S&P expects the Greek economy will shrink by 3% this year.  At
negative 3%, Greece's economy would be the worst-performing among
all 129 sovereigns that Standard & Poor's rates, except for
Ukraine, Venezuela, and Belarus.  Risks to S&P's GDP projection
are substantial and in either direction.  On the one hand, the
extended bank holiday (which ended on July 20) has severely
depressed retail trade and manufacturing (given a shortage of
input financing for the latter), and has harmed exports,
including tourism.  S&P also thinks that Greece's economy is more
based on cash transactions than most other EU economies,
amplifying the contractionary impact of the cash shortage.  Even
before capital controls were implemented, liquidity in the Greek
economy was constrained, with the public sector having
accumulated arrears to the private sector totaling around 4% of
GDP, by S&P's estimates. The hike on value added tax (VAT) on
July 20, applicable to restaurants and public transport,
alongside new expenditure cuts, will exert further fiscal drag on
Greece's economy.  Although banks are now open again, their
operations are limited and capital controls are likely to remain
in place.

On the other hand, the agreement to negotiate a new program,
which will potentially include refinancing amounting to up to 14%
of GDP to recapitalize Greece's distressed banks should help
gradually restore confidence in Greece's financial stability.
The very weak current level of GDP compared to potential may
drive a statistical recovery commencing in late 2015 and early
2016, given that domestic demand is down about 40% since 2008.
In S&P's opinion, the ESM loan agreement between Greece and its
official creditors will also repair some of the damage done to
tourist bookings from the bank closures, and should eventually
support a return of trade financing.  Moreover, assuming the ESM
financing includes a reduction of public arrears to domestic
suppliers (which S&P anticipates), the small and midsize
enterprise (SME) sector will become more liquid, leading to
faster payment of wages to the private sector.

A key question for the economy in the next few years, in S&P's
view, is whether Greece can attract foreign investment, including
equity inflows, to upgrade its capital stock and create jobs,
especially in the country's relatively small tradables sector.
Since 2008, Greece's gross fixed capital formation has declined
by more than 60%.  S&P thinks the very low foreign direct
investment inflows into Greece's private sector (both before and
since the financial crisis) reflect both concerns regarding the
state's solvency, as well as the weak and unpredictable business
and legal environment.  A material reduction of the official debt
burden could in S&P's view go a long way to reduce uncertainties
on the state's solvency over S&P's 2015-2018 ratings horizon.
Although Greek debt was not included in the ECB's first round of
quantitative easing purchases of sovereign eurozone debt earlier
this year, the July 20 payment of about EUR3.5 billion in Greek
government bonds held by the ECB and another EUR3.6 billion in
redemptions in August would reduce Greek commercial sovereign
debt held by the ECB to below 33% of all commercial Greek debt,
if treasury bills are included.  This could make Greek government
bonds eligible for purchase by the ECB, subject to compliance
with the new ESM program.

The ECB Governing Council's decision on July 16 to raise the
ceiling on Emergency Liquidity Assistance to Greece's banks,
alongside the reopening of all bank branches in Greece on July
20, are important first steps toward normalizing financial
stability. Nevertheless, the uncertain capitalization of Greece's
commercial banks may hinder a return of deposits without more
credible and explicit guarantees to depositors.  S&P do not
anticipate that capital controls will be lifted until European
institutions complete their review of the banking system's
capital requirements late this year or in early 2016.

OUTLOOK

The stable outlook indicates S&P's view over the next 12 months
that risks to its 'CCC+' rating are balanced.

S&P could raise the ratings on Greece if the prospect of further
meaningful relief on official debt becomes more tangible, which
would in turn depend on the government's successful
implementation of the yet-to-be agreed new ESM loan program.
Moreover, successful implementation of significant structural
reforms would, in our view, also contribute to enhancing Greece's
currently depressed investment and growth potential, help it to
achieve long-term sustainable public debt, and weigh positively
on the ratings.

S&P could lower the ratings on Greece if the government hinders
or halts implementation of the ESM program, which would withhold
capital injections into Greece's banks and prevent restored
confidence in the Greek economy.  If this occurs, it would likely
eliminate the possibility that the ECB might purchase Greek
sovereign debt under its quantitative easing program.  Failure to
implement the ESM program would likely lead to Greece's default
on its commercial debt and markedly increase the risk of Greece
exiting the eurozone.

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

The committee agreed that the monetary assessment had
deteriorated.  All other key rating factors were unchanged.

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

RATINGS LIST

                                       Rating        Rating
                                       To            From
Greece (Hellenic Republic)
Sovereign credit rating
  Foreign and Local Currency           CCC+/Stable/C CCC-/Neg./C
Transfer & Convertibility Assessment
  T&C Assessment                       AAA           AAA
Senior Unsecured
  Foreign and Local Currency [#1]      CCC+          CCC-
  Foreign and Local Currency           CCC+          CCC-
Short-Term Debt
  Foreign and Local Currency [#1]      C             C
Commercial Paper
  Local Currency                       C             C

[#1] Issuer: National Bank of Greece S.A.,
     Guarantor: Greece (Hellenic Republic)



=============
I R E L A N D
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BEST MENSWEAR: Court Appoints Interim Examiner; Hearing Set
-----------------------------------------------------------
Mary Carolan at The Irish Times reports that an interim examiner
has been appointed to Best Menswear, the company operating
thirteen Best Menswear stores across Ireland and two other
fashion stores employing 130 people.

According to The Irish Times, the court heard that the sudden
closure of Clerys department store in Dublin last month had a
"catastrophic" effect on the cashflow of Best as it was a
concession holder operating its largest store from the Clerys
premises.

Rossa Fanning BL, who is representing the company, said the
damage occurred as a result of the loss of some EUR270,000 held
by Clerys in trust for Best arising from prior sales and the loss
of trading revenues since Clery's closed, The Irish Times notes.

Mr. Fanning, as cited by The Irish Times, said some EUR500,000
stock was also locked into the Clerys building and could not be
sold.  He said that while the company got access to the stock a
week after the Clerys closure, it remains unable to use its
largest store and will suffer significantly from loss of future
cashflow from there, The Irish Times relays.

Best suffered over recent years due to the economic downturn and
is currently unable to service its bank debt, The Irish Times
discloses.  According to The Irish Times, Mr. Fanning said an
independent expert, accountant Michael McAteer of Grant Thornton,
believes it has a reasonable prospect of survival once certain
conditions are met.

He said those conditions include a restructuring of the company
and renegotiation or possible repudiation of leases, The Irish
Times relays.  The company had identified problems with high
rents, coupled with decreasing sales from 2008 and its management
had "not put their heads in the sand", The Irish Times notes.

Ms. Justice Caroline Costello said she was satisfied to grant
court protection to the company and to appoint Declan McDonald --
declan.mcdonald@ie.pwc.com -- of PricewaterhouseCooper as interim
examiner pending a hearing on July 30, The Irish Times relates.

The court heard that the company's main creditor is Allied Irish
Banks, owed some EUR12.6 million, while trade creditors are owed
almost EUR12 million, The Irish Times discloses.

Best Menswear was established in 1948.  It has registered offices
at Finglas, Dublin.


MOTHERCARE IRELAND: High Court Appoints Interim Examiner
--------------------------------------------------------
Mary Carolan at The Irish Times reports that an interim examiner
has been appointed by the High Court to Mothercare Ireland, which
employs 276 people in 18 shops across the State.

The company said the aim of seeking court protection and
examinership is to achieve a restructuring of the company, save
as many jobs as possible and minimize shop closures, The Irish
Times relates.  It said it cannot afford to support unprofitable
stores, The Irish Times notes.

According to The Irish Times, the firm said it will trade as
normal during the examinership process, staff and suppliers will
be paid as normal and all gift cards and family card points will
be honored.

Mr. Justice Brian McGovern on July 22 granted an application by
Rossa Fanning BL, who is representing Mothercare Ireland, for
court protection and the appointment of Declan McDonald of
PriceWaterhouseCooper as interim examiner, The Irish Times
relays.

The judge, as cited by The Irish Times, said he was satisfied the
company, and two related companies, Mothercare World and Effleby
Trading Ltd., were entitled to protection and the appointment of
an interim examiner and made directions for advertising the
petition and returned it for hearing on July 30.

The court was told that a significant source of the company's
difficulties is having to contend with rents that significantly
exceed current market rents, The Irish Times relates.  The
company says the renegotiation and repudiation of rents will be a
significant aspect of the examinership process, The Irish Times
discloses.

Mothercare Ireland is a franchise of Mothercare UK and has traded
here for 23 years. It is the country's largest maternity, baby,
nursery and children's clothes retailer.



=========
I T A L Y
=========


SNAI SPA: Moody's Assigns (P)B1 Rating to EUR110MM Sr. Notes
------------------------------------------------------------
Moody's Investors Service assigned a (P)B1 rating to the proposed
EUR110 million senior secured notes due June 2018 to be issued by
SNAI S.p.A.  Concurrently, Moody's affirmed SNAI's B2 corporate
family (CFR) and B2-PD probability of default (PDR) ratings, B1
rating on the existing senior secured notes due June 2018, and
Caa1 rating on the senior subordinated notes due December 2018
also issued by the company.  The outlook on all ratings remains
stable.

Proceeds from the EUR110 million notes will be used to refinance
the existing indebtedness of Cogemat S.p.A. (unrated), a company
SNAI intends to acquire also via issuance of additional shares.
Proceeds from the new notes will be deposited in escrow until the
acquisition of Cogemat is consummated.  SNAI will also upsize its
super senior revolver credit facility (RCF), which is expected to
be undrawn at completion, to EUR55 million from EUR30 million.

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 a conclusive
review of the final documentation, Moody's will endeavor to
assign a definitive rating to the facilities.  A definitive
rating may differ from a provisional rating.

RATINGS RATIONALE

Moody's views the acquisition of Cogemat as positive for the
company's business profile, increasing its scale with the
addition of approximately EUR440 million to the top line, not
only strengthening its leadership positions in the sports and
horse betting and gaming machine segments, but also benefitting
from a wider distribution network.  Pro-forma leverage for the
acquisition is anticipated to be around 5.7x at the end of
financial year 2015 from 6.1x of SNAI standalone for the last
twelve months ended March 2015, despite Moody's expectation of
declining earnings for the combined group owing to a weak first
quarter performance and the impact of the 2015 Stability Law.
Moody's acknowledges that there are some synergies that could be
extracted from the merger but the achievements of those would
require some time.

Moody's however notes that the merger will negatively affect the
group's EBITDA margin.  Furthermore, Moody's remains cautious
about future growth prospects owing to SNAI's material exposure
to mature or declining segments of the gaming industry, such as
sports and horse betting and to the uncertainty of the regulatory
environment, with the Italian gaming reform believed to affect
primarily gaming machines.  As a result, deleveraging is expected
to be limited over the rating horizon.

SNAI's B2 CFR remains constrained by (1) high financial leverage
and low interest coverage on a Moody's-adjusted basis; (2) lack
of geographical diversification, which exposes the company to a
highly competitive operating environment and weak consumer
spending, albeit improving; (3) its exposure to the Italian
gaming regulatory and tax regimes, as well as uncertainty over
the upcoming reforms; (4) its reliance on volatile sport results
and (5) the risk associated with the integration of Cogemat
including the risk of having Cogemat's licences and guarantees
revoked or not renewed.

Conversely, SNAI's ratings are positively supported by the
company's (1) leading market positions in the Italian betting and
machines segments; (2) its moderately diversified portfolio of
gaming activities protected by non-exclusive multi-year
concessions; and (3) relatively flexible cost base.

Moody's currently anticipates that SNAI's liquidity profile on
completion of the transaction will be sufficient for its ongoing
operational needs, including intra quarter working capital
swings, maintenance capex and costs associated with the upcoming
licenses renewal.  The liquidity will be supported by EUR101
million of pro forma cash, and access to EUR55 million RCF
maturing in 2017 (subject to compliance to a minimum EBITDA of
EUR65 million).

The issuer of the new and the existing senior secured notes is
SNAI S.p.A., the top entity within the restricted group and the
reporting entity for the consolidated group.  The (P)B1 rating on
the new notes is the same as the existing as they rank pari passu
following completion of Cogemat acquisition.  SNAI's probability
of default rating (PDR) of B2-PD, at the same level as the CFR,
assumes a 50% family recovery rate.  The rating on the senior
notes is one notch higher than the CFR reflecting its contractual
seniority, and the Caa1 senior subordinated notes are
consequently rated two notches below the CFR.

The super senior revolving credit facility, the new and the
existing senior notes will share the same security package, which
Moody's views as limited, with only (1) a pledge over 50% plus
one share of the share capital of the issuer; (2) a pledge over
100% of the quotas of one of the subsidiaries, Teleippica S.r.l.;
and (3) a pledge over certain intellectual property rights of the
Issuer; (iv) a pledge over 100.00% of the shares of Cogemat; and
(v) an assignment of the receivables in respect of the Proceeds
Loan.  The senior subordinated notes are unsecured.  Upon
enforcement, the super senior RCF ranks ahead of the senior
secured notes in priority of payment, which rank ahead of the
senior subordinated notes.

RATIONALE FOR THE STABLE OUTLOOK

The stable rating outlook reflects the reduction in leverage pro-
forma for the acquisition of Cogemat and Moody's expectation of
limited delivering prospects over the rating horizon.  The stable
outlook is based on Moody's assumption that the company will be
able to maintain and renew its licenses upon maturity, will not
embark on any transforming acquisitions or make debt-funded
shareholder distributions.

WHAT COULD CHANGE THE RATINGS UP

Positive pressure on the ratings could materialize if SNAI (1)
maintains or improve its profitability, particularly its EBITDA
margin; (2) increases its FCF/debt to exceed 10%; and (3) reduces
its Moody's-adjusted debt/EBITDA ratio below 5.0x.

WHAT COULD CHANGE THE RATINGS DOWN

Conversely, downward pressure would be exerted on the ratings if
SNAI's liquidity profile and credit metrics deteriorate as a
result of (1) slowing down of operational improvement; (2)
adverse changes in Italian gaming regulation, or negative
outcomes of outstanding litigations; (3) aggressive changes in
financial policy; and quantitatively; (4) if Moody's-adjusted
debt/EBITDA ratio increases above 6.0x.

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

SNAI S.p.A. is a market leader in sports and horse race betting
in Italy and one of the largest authorized concession holders of
betting and gaming entertainment.  In 2014, SNAI generated
revenues of EUR526 million.  It is listed on the Milan stock
exchange, with about 67% of its shares held by Global Games
S.p.A., which is in turn owned equally by Investindustrial and
Palladio Finanziaria.  Following the acquisition of Cogemat,
Global Games S.p.A. will hold c.55% of the shares and Cogemat
contributing shareholders c.38%.



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


CONTEGO CLO I: Moody's Raises Rating on Class E Notes to Ba2
------------------------------------------------------------
Moody's Investors Service announced that it has upgraded the
ratings of the following notes issued by Contego CLO I B.V.:

  EUR21.75 million (current outstanding balance EUR 13.1 mil.)
  Class B Deferrable Secured Floating rate Notes due 2026,
  Affirmed Aaa (sf); previously on Sept. 12, 2014 Upgraded to
  Aaa (sf)

  EUR18.15 million Class C Deferrable Secured Floating Rate Notes
  due 2026, Upgraded to Aaa (sf); previously on Sept. 12, 2014
  Upgraded to Aa2 (sf)

  EUR20.55 million Class D Deferrable Secured Floating Rate Notes
  due 2026, Upgraded to A1 (sf); previously on Sept. 12, 2014
  Upgraded to Baa2 (sf)

  EUR11.75 million Class E Deferrable Secured Floating rate Notes
  due 2026, Upgraded to Ba2 (sf); previously on Sept. 12, 2014
  Upgraded to Ba3 (sf)

Contego CLO I B.V., issued in July 2007, is a multi-currency
Collateralised Loan Obligation backed by a portfolio of mostly
high yield European senior secured loans.  The portfolio is
managed by Rothschild (NM) & Sons Limited.  This transaction
passed its reinvestment period in April 2013.

RATINGS RATIONALE

The upgrades of the notes are primarily a result of significant
deleveraging since the last rating action in Sept. 2014.  The
Class A and variable funding notes have paid down EUR84.6 million
(now fully redeemed) and the class B notes have paid down EUR8.7
million. (40% of initial balance) resulting in increases in over-
collateralization levels.  As of the May 2015 trustee report, the
Class B, C, D and E overcollateralization ratios are reported at
577.73%, 241.95%, 145.93% and 118.94% respectively compared with
158.20%, 135.17%, 116.04% and 107.36% in September 2014.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.  In its base
case, Moody's analyzed the underlying collateral pool as having a
EUR pool with performing par and principal proceeds balance of
EUR75.6 million, a defaulted par of EUR0 million, a weighted
average default probability of 19.7% (consistent with a WARF of
2732 over a weighted average life of 4.56 years), a weighted
average recovery rate upon default of 49.3% for a Aaa liability
target rating, a diversity score of 13 and a weighted average
spread of 3.67%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool.  The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool.  For a Aaa liability target rating,
Moody's assumed that 98% of the portfolio exposed to senior
secured corporate assets would recover 50% upon default while the
non first-lien loan corporate assets would recover 15%.
Historical and market performance and a collateral manager's
latitude to trade collateral are also relevant factors.  Moody's
incorporates these default and recovery characteristics of the
collateral pool into its cash flow model analysis, subjecting
them to stresses as a function of the target rating of each CLO
liability it is analyzing.

Methodology Underlying the Rating Action:

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

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

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed a lower weighted average recovery rate in
the portfolio.  Moody's ran a model in which it reduced the
weighted average recovery rate by 5%; the model generated outputs
that were within one notch of the base-case results.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
notes, in light of uncertainty about credit conditions in the
general economy.  CLO notes' performance may also be impacted
either positively or negatively by (1) the manager's investment
strategy and behavior and (2) divergence in the legal
interpretation of CDO documentation by different transactional
parties due to embedded ambiguities.

Additional uncertainty about performance is due to these:

  (1) Portfolio amortization: The main source of uncertainty in
this transaction is the pace of amortization of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortization could accelerate as a consequence of high loan
prepayment levels or collateral sales the collateral manager or
be delayed by an increase in loan amend-and-extend
restructurings. Fast amortization would usually benefit the
ratings of the notes beginning with the notes having the highest
prepayment priority.

  (2) Around 16% of the collateral pool consists of debt
obligations whose credit quality Moody's has assessed by using
credit estimates.  As part of its base case, Moody's has stressed
large concentrations of single obligors bearing a credit estimate
as described in "Updated Approach to the Usage of Credit
Estimates in Rated Transactions", published in October 2009

In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations.  These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio.  All information available
to rating committees, including macroeconomic forecasts, input
from other Moody's analytical groups, market factors, and
judgments regarding the nature and severity of credit stress on
the transactions, can influence the final rating decision.


EURO GALAXY: Moody's Raises Rating on Class E Notes to 'Ba1'
------------------------------------------------------------
Moody's Investors Service announced that it has taken rating
actions on these classes of notes issued by Euro Galaxy CLO B.V.:

  EUR88,000,000 (current outstanding balance EUR 17.3 mil.)
   Class A-1 Senior Floating Rate Notes due 2021, Affirmed
   Aaa (sf); previously on Sept. 23, 2014 Upgraded to Aaa (sf)

  EUR178,500,000 (current outstanding balance EUR 35 mil.) Class
   A-2 Senior Floating Rate Delayed Draw Notes due 2021, Affirmed
   Aaa (sf); previously on Sept. 23, 2014 Upgraded to Aaa (sf)

  EUR16,000,000 Class B-1 Senior Floating Rate Notes due 2021,
   Affirmed Aaa (sf); previously on Sept. 23, 2014 Upgraded to
   Aaa (sf)

  EUR12,000,000 Class B-2 Senior Fixed Rate Notes due 2021,
   Affirmed Aaa (sf); previously on Sept. 23, 2014 Upgraded to
   Aaa (sf)

  EUR24,500,000 Class C Deferrable Interest Floating Rate Notes
   due 2021, Upgraded to Aa1 (sf); previously on Sept. 23, 2014
   Upgraded to A2 (sf)

  EUR14,000,000 Class D Deferrable Interest Floating Rate Notes
   due 2021, Upgraded to A2 (sf); previously on Sept. 23, 2014
   Upgraded to Baa2 (sf)

  EUR13,500,000 Class E Deferrable Interest Floating Rate Notes
   due 2021, Upgraded to Ba1 (sf); previously on Sept. 23, 2014
   Upgraded to Ba2 (sf)

  EUR14,000,000 Class P Combination Notes due 2021, Affirmed
   Aaa (sf); previously on Sept. 23, 2014 Upgraded to Aaa (sf)

Euro Galaxy CLO B.V., issued in September 2006, is a single
currency Collateralised Loan Obligation backed by a portfolio of
mostly high yield European loans.  The portfolio is managed by
PineBridge Investments.  The reinvestment period ended in October
2012.  It is predominantly composed of senior secured loans.

RATINGS RATIONALE

The upgrades of the notes are primarily a result of significant
deleveraging since the last rating action in September 2014
(based on the July 2014 trustee report).  The Class A-1 and A-2
notes have collectively paid down EUR84.55 million (32% of
initial balance) resulting in increases in over-collateralization
levels. As of the May 2015 trustee report, the Class B, C, D and
E overcollateralization ratios are reported at 197.98%, 151.71%,
133.83% and 120.18% respectively compared with 144.64%, 125.92%,
117.26% and 109.96% in July 2014.

The rating on the combination notes addresses the repayment of
the rated balance on or before the legal final maturity.  For the
Class P, the rated balance at any time is equal to the principal
amount of the combination note on the issue date minus the sum of
all payments made from the issue date to such date, of either
interest or principal.  The rated balance will not necessarily
correspond to the outstanding notional amount reported by the
trustee.  The rated balance of the Class P notes is currently
over collateralized by the Class B-2 notes.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.  In its base
case, Moody's analyzed the underlying collateral pool as having a
EUR pool with performing par and principal proceeds balance of
EUR158.9 million, a defaulted par of EUR0.9 million, a weighted
average default probability of 20.0% (consistent with a WARF of
2858 over a weighted average life of 4.32 years), a weighted
average recovery rate upon default of 48.2% for a Aaa liability
target rating, a diversity score of 23 and a weighted average
spread of 3.89%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool.  The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool.  For a Aaa liability target rating,
Moody's assumed that 95% of the portfolio exposed to senior
secured corporate assets would recover 50% upon default while the
non first-lien loan corporate assets would recover 15%.
Historical and market performance and a collateral manager's
latitude to trade collateral are also relevant factors.  Moody's
incorporates these default and recovery characteristics of the
collateral pool into its cash flow model analysis, subjecting
them to stresses as a function of the target rating of each CLO
liability it is analyzing.

Methodology Underlying the Rating Action:

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

Factors that would lead to an upgrade or downgrade of the rating:
In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed a lower weighted average recovery rate in
the portfolio.  Moody's ran a model in which it reduced the
weighted average recovery rate by 5%; the model generated outputs
that were unchanged for classes A, B and C but within two notches
of the base-case results for classes D and E.  This transaction
is subject to a high level of macroeconomic uncertainty, which
could negatively affect the ratings on the notes, in light of
uncertainty about credit conditions in the general economy.  CLO
notes' performance may also be impacted either positively or
negatively by (1) the manager's investment strategy and behavior
and (2) divergence in the legal interpretation of CDO
documentation by different transactional parties due to embedded
ambiguities.

Additional uncertainty about performance is due to these:

  (1) Portfolio amortization: The main source of uncertainty in
this transaction is the pace of amortization of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortization could accelerate as a consequence of high loan
prepayment levels or collateral sales the collateral manager or
be delayed by an increase in loan amend-and-extend
restructurings. Fast amortization would usually benefit the
ratings of the notes beginning with the notes having the highest
prepayment priority.

  (2) Around 10% of the collateral pool consists of debt
obligations whose credit quality Moody's has assessed by using
credit estimates.  As part of its base case, Moody's has stressed
large concentrations of single obligors bearing a credit estimate
as described in "Updated Approach to the Usage of Credit
Estimates in Rated Transactions"

  (3) Recoveries on defaulted assets: Market value fluctuations
in trustee-reported defaulted assets and those Moody's assumes
have defaulted can result in volatility in the deal's over-
collateralization levels.  Further, the timing of recoveries and
the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty.  Moody's
analyzed defaulted recoveries assuming the lower of the market
price or the recovery rate to account for potential volatility in
market prices.  Recoveries higher than Moody's expectations would
have a positive impact on the notes' ratings.

  (4) Long-dated assets: The presence of assets that mature
beyond the CLO's legal maturity date exposes the deal to
liquidation risk on those assets.  Moody's assumes that, at
transaction maturity, the liquidation value of such an asset will
depend on the nature of the asset as well as the extent to which
the asset's maturity lags that of the liabilities.  Liquidation
values higher than Moody's expectations would have a positive
impact on the notes' ratings.

In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations.  These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio.  All information available
to rating committees, including macroeconomic forecasts, input
from other Moody's analytical groups, market factors, and
judgments regarding the nature and severity of credit stress on
the transactions, can influence the final rating decision.


GLOBAL UNIVERSITY: Moody's Assigns 'B2' CFR, Outlook Stable
-----------------------------------------------------------
Moody's Investors Service assigned a B2 corporate family rating
and B1-PD probability of default to Global University Systems
Holding B.V.  Concurrently, Moody's has assigned a B2 rating to
the proposed GBP 234.4 million senior secured notes due 2020 to
be issued by Lake Bridge International Plc in support of the
acquisition of the University of Law (ULaw) by GUS.  The outlook
on all ratings is stable.

The proceeds will be used to refinance the bridge facility drawn
for the ULaw acquisition that closed on June 1, 2015, to
refinance existing debt and to pay transaction fees and expenses.
Cash overfunding is expected to result in a closing cash balance
of approximately GBP59 million.

RATINGS RATIONALE

GUS' B2 Corporate Family Rating (CFR) reflects the company's (1)
strong reliance to comply with rigorous regulatory standards to
maintain access to degree awarding powers, government student
loans, visa-related licenses and university entitlements; (2)
geographic concentration, with the UK accounting for over 90% of
revenue in the year ending November 2014; (3) the recent rapid
growth of the company through acquisitions and its limited
trading track record; (4) strong reliance on sourcing students
from outside the EU; and (5) limited scale in a fragmented market
dominated by public providers.

More positively, the CFR reflects GUS's (1) market position as
one of the leading UK private higher education providers of
professional legal education and accounting qualifications; (2)
expected stable drivers of demand for quality private English
education; (3) strong network of independent recruitment agents
and 500 own staff dedicated to sales, marketing and business
development; (3) diversified product portfolio across 10
institutions spanning a wide variety of courses and degrees; (4)
moderate expected Moody's adjusted leverage of around 4x at the
end of the year ending November 2015 (pro forma for the ULaw
acquisition); and (5) the significant revenue and cost synergies
expected from the ULaw integration.

Moody's considers GUS's near-term liquidity position, pro forma
for the transaction, to be good.  With GBP24 million of cash
overfunding, the opening cash balance is about GBP59 million with
additional liquidity for working capital and acquisitions
stemming from a GBP15 million Revolving Credit Facility (RCF),
which is expected to be undrawn at closing.  The super-senior RCF
will benefit from a Net Total Leverage maintenance covenant set
at 4.75x, and tested quarterly.  Moody's expects the company to
maintain satisfactory headroom on its covenant going forward.

The proposed capital structure includes GBP234.4 million five
year senior secured notes, and a GBP15 million super-senior RCF
maturing in 2019.  The B2 rating on the Senior Secured Notes, in
line with the CFR, reflects the limited amount of liabilities
ranking ahead of the notes in the structure.

Both the notes and RCF benefit from first ranking security
interests.  The notes are guaranteed by substantially all
subsidiaries which, for the 12 months ended February 28, 2015,
represented 98% and 97% of the group's adjusted EBITDA and total
assets (excluding goodwill, intangible assets, investments,
deferred taxes and inter-company assets), respectively.  The RCF
ranks super senior in the enforcement waterfall and benefits from
a guarantor coverage test of not less than 85% of the group's
gross assets and EBITDA.

OUTLOOK
The stable rating outlook reflects Moody's expectation that GUS
will benefit from the strategic growth initiatives combining ULaw
into its existing product portfolio and achieve significant cost
efficiencies.  The stable outlook also reflects Moody's
expectation that each GUS brand will maintain its current
regulatory approval status, including degree awarding powers and
Tier 4 licenses.

WHAT COULD CHANGE THE RATINGS UP

Whilst not envisaged in the near term, the ratings could be
upgraded over time if the company sustains solid levels of
organic growth, achieves the cost synergies from the ULaw merger
and continues to diversify geographically.  Quantitatively, the
rating could be upgraded if debt-to-EBITDA declines and is
sustained below 4.0x, and free cash flow to debt improves
sustainably above 5%, whilst maintaining a sold liquidity
profile.

WHAT COULD CHANGE THE RATINGS DOWN

The ratings could be downgraded if earnings were to weaken such
that adjusted debt-to-EBITDA increases and moves towards 5x, or
if free cash flow or the liquidity profile weakens.  Any material
negative impact from a change in any of the company brands'
regulatory approval status, degree awarding powers, Tier 4
licenses or university title could also pressure the ratings.

Global University Systems is a private higher education provider
offering accredited academic undergraduate and postgraduate
degrees, vocational and professional qualifications and language
courses at its institutions in the United Kingdom, Germany,
Canada and Singapore and through its online platform.  The
company's key brands include the London School of Business &
Finance, the University of Law and St Patrick's College.  Founded
in 2003 and headquartered in the Netherlands, the company
generated around GBP200 million revenue in the twelve months
ending February 2015, pro-forma for the acquisition of the
University of Law (ULaw).

GUS recruits its students from over 150 countries through a
network of over 1,700 active independent education agents and 500
staff dedicated to marketing, sales and business development.
The company is owned by management, with the largest share owned
by the founder Aaron Etingen.

PRINCIPAL METHODOLOGIES

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.



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


MOSCOW RE: S&P Affirms Then Withdraws 'BB' Counterparty Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' counterparty
credit and insurer financial strength ratings and 'ruAA' national
scale ratings on Russia-based reinsurer Moscow Re OJSIRC.

S&P subsequently withdrew the ratings at Moscow Re's request.
The outlook was stable at the time of withdrawal.

The affirmation reflected S&P's view of Moscow Re's vulnerable
business risk and lower adequate financial risk profile.  Moscow
Re has discontinued writing new business and is effectively
running off its liabilities.  Although Moscow Re is in run-off,
it maintains adequate reserves and has considerable excess
capital to comfortably service its policyholder obligations over
the next 12 to 18 months and beyond.

S&P's base-case scenario assumes that Moscow Re will report close
to break-even results in 2015-2016, and there will be no material
repatriation of capital to Moscow Re's parent, VTB Insurance
Ltd., until most of Moscow Re's liabilities have been run down.

S&P expects Moscow Re's risk exposure to gradually reduce as the
company settles its claims.  As of Dec. 31, 2014, Moscow Re had
Russian rubles (RUB) 882 million of shareholders' equity and
RUB322 million of net loss reserves on its balance sheet.  Its
net loss reserves had thus decreased by RUB152 million since the
previous year, while shareholder's equity has remained stable.


PROMSVYAZBANK OJSC: S&P Affirms 'BB-/B' Counterparty Ratings
------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-/B' long- and
short-term counterparty credit ratings on Russia-based
Promsvyazbank OJSC (PSB).  The outlook is negative.  At the same
time, S&P affirmed its 'ruAA-' Russia national scale rating on
the bank.

The affirmation reflects S&P's view that PSB's recent Russian
ruble (RUB) 13.8 billion (about US$260 million) Tier-1 capital
increase, along with a planned preferred share issuance in late
2015 or early 2016, should reduce pressure on the bank's capital
ratios, somewhat offsetting poor profitability.  At the same
time, S&P continues to assess PSB's capital and earnings as
"weak," reflecting S&P's belief that the bank's risk-adjusted
capital (RAC) ratio (as measured by Standard & Poor's RAC
framework) will remain within 3.0%-3.5% in the next 12-18 months.

S&P's projection implies loan book growth of about 10% in the
next two years.  S&P anticipates that the bank's capital position
will be pressured by increased provisioning needs this year (with
the credit cost being about 3.6%-4.0% in 2015).  S&P also
considers that the bank's net interest margin will be low at 3%
this year, given the increased funding costs for all Russian
banks.  S&P expects the bank to be loss-making in 2015, but
gradually recover in 2016 and 2017.  S&P anticipates that the
bank's net interest margin will pick up to 3.5% in 2016, and that
credit costs will stabilize at levels closer to 2.0%-2.5% in 2016
and 2017.  In S&P's view, PSB's through-the-cycle provisioning
curve will be smoother than the sector average.  S&P bases its
assumption on the view that the bank started to create higher
provisions earlier than its peers.  As such, S&P believes it
should exit this period sooner, given its already high non-
performing loans (NPLs) coverage (about 165% as of Dec. 31,
2014).

S&P assesses PSB's risk position as "adequate," because S&P
believes the bank's risk profile is not materially different from
the average risk profile of Russia-based financial institutions.
S&P notes that over 2014 the bank managed to attract large high-
quality borrowers, benefitting from increased demand for
corporate loans in an environment where external markets are
closed to top-tier Russian corporations.  The bank's gross NPLs
(more than 90 days overdue) stood at about 2.9% of total loans as
of Dec. 31, 2014, which compares well with the industry average.
S&P' understands, however, that these metrics are also subject to
the bank's policy of regularly writing off or selling problematic
assets.

At the same time, the economic slowdown in Russia will likely
lead to a deterioration of the bank's loan book.  Among the main
factors pressuring PSB's risk position is an increased amount of
non-core assets on the balance sheet.

These assets include:

   -- Investments in associates totaling RUB4.6 billion, which
      represent an option agreement to purchase 30% in a real
      estate developer operating in Moscow.  The agreement comes
      as a result of construction delays at the developer's
      investment properties; and

   -- Investment properties totaling RUB23 billion, mostly
      represented by various real estate objects in Moscow and
      the Moscow region.

S&P believes these assets somewhat increase the bank's
vulnerability to market risk (due to the change in valuations)
and liquidity risk (due to the illiquid nature of the assets).
However, S&P believes that management is proactively dealing with
these assets, and a successful workout might support the bank's
financial results.  At the same time, should these exposures
increase further, S&P might revise downward its assessment of the
bank's risk position.

S&P assesses PSB's business position as "adequate."  This
reflects the balance between the bank's well-established
competitive standing and well-diversified business mix in a
Russian context, its limited competitive power compared with that
of larger state-owned banks, and its somewhat aggressive capital
management in previous years.  PSB is one of Russia's 10-largest
banks and had total assets of about RUB1,062 billion as of Dec.
31, 2014.  S&P views positively the bank's shift toward more
cautious growth in lower-risk segments, with greater attention to
the quality of its loan book and sustained business development
rather than expansion.  At the same time, S&P believes the bank's
competitive position could be tested in 2015-2016, since
operating conditions remain challenging and competition is
intensifying in some segments.

PSB's funding is "average" and its liquidity "adequate," in S&P's
opinion.  The bank is mostly funded by current accounts and
deposits.  Given the bank's good commercial franchise, S&P
expects deposits will continue to demonstrate stability, notably
in times of stress.  PSB has a reasonably well-diversified
funding profile, and its repayment needs are limited in 2015.

The negative outlook primarily reflects S&P's concerns regarding
increased operating risks in Russia, as well as the risk that
PSB's asset quality could deteriorate more rapidly or more
substantially than S&P currently expects over its forecast
horizon for 2015-2017.  It also reflects a potential reduction in
the Russian government's financial capacity to provide
extraordinary support to private sector entities.

S&P could take a negative rating action if it lowers its
sovereign rating on Russia, which would signal an even lower
likelihood of extraordinary support to systemically important
Russian banks.  S&P could also lower the ratings if it sees the
bank's asset quality deteriorating by more than S&P currently
expects, or the workout of problem assets becoming more
prolonged.  A negative rating action could also follow if the RAC
ratio falls below 3% due to higher-than-expected growth, higher
reported losses, or other one-time effects such as a risky merger
or acquisition, which could put downward pressure on the bank's
financial profile.

The possibility of a positive rating action is currently remote.
An outlook revision would depend on the stabilization of
operating conditions in Russia, the revision of the sovereign
outlook, and stabilization of the bank's own financial profile.


SKB-BANK: Moody's Withdraws 'B2' Long-Terms Deposit Ratings
-----------------------------------------------------------
Moody's Investors Service has withdrawn SKB-Bank's ratings:

   -- Long-term local-currency deposit rating of B2
   -- Long-term foreign-currency deposit rating of B2
   -- Short-term local and foreign-currency deposit ratings of
      Not Prime
   -- Long-term Counterparty Risk Assessment of B1(cr)
   -- Short-term Counterparty Risk Assessment of Not Prime(cr)
   -- Baseline credit assessment (BCA) of b2
   -- Adjusted Baseline Credit Assessment of b2

At the time of the withdrawal, all the bank's long-term ratings
carried a negative outlook.

RATINGS RATIONALE

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

Domiciled in Russia, SKB-Bank reported total assets of $1.84
billion and shareholders' equity $137 million as at year-end 2014
under audited IFRS.


TIME BANK: Put Under Provisional Administration, License Revoked
----------------------------------------------------------------
The Bank of Russia, by its Order No. OD-1723 dated July 21, 2015,
revoked a banking license of Moscow-based credit institution PJSC
Time Bank.

The Bank of Russia took such an extreme measure -- revocation of
the banking license -- due to the credit institution's failure to
comply with federal banking laws and Bank of Russia regulations
and taking into account the application of measures envisaged by
the Federal Law "On the Central Bank of the Russian Federation
(Bank of Russia)".

Time Bank implemented high-risk lending policy and did not create
loan loss provisions adequate to the risks assumed.  The credit
institution was involved in dubious transit transactions on
overseas money transfers in significant amounts.  The bank's
internal control rules as regards countering the legalization
(laundering) of criminally obtained incomes and the financing of
terrorism did not comply with requirements of Bank of Russia
regulations.  Both management and owners of the credit
institution did not take any effective measures to bring its
activities back to normal.

The Bank of Russia, by its Order No. OD-1724 dated July 21, 2015,
appointed a provisional administration to Time Bank for the
period until the appointment of a receiver pursuant to the
Federal Law "On the Insolvency (Bankruptcy)' or a liquidator
under Article 23.1 of the Federal Law "On Banks and Banking
Activities".  In accordance with federal laws, the powers of the
credit institution's executive bodies are suspended.

Time-Bank is a member of the deposit insurance system. The
revocation of the banking license is an insured event as
stipulated by Federal Law No. 177-FZ, "On the Insurance of
Household Deposits with Russian Banks" in respect of the bank's
retail deposit obligations, as defined by legislation.

As of July 1, 2015, PJSC Time Bank was ranked 628th by assets in
the Russian banking system.



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


BBVA CONSUMO 7: Moody's Assigns (P)B1 Rating to Series B Notes
--------------------------------------------------------------
Moody's Investors Service has assigned these provisional ratings
to notes to be issued by BBVA Consumo 7, FT:

  EUR[1,239.7 million] Series A Fixed Rate Asset Backed Notes due
   Sept. 2028, Assigned (P)Aa3 (sf)

  EUR[210.3 million] Series B Fixed Rate Asset Backed Notes due
   Sept. 2028, Assigned (P)B1 (sf)

RATINGS RATIONALE

The transaction is a revolving cash securitization of consumer
loans extended to obligors in Spain by Banco Bilbao Vizcaya
Argentaria, S.A. (BBVA) (Baa1/P-2 (cr), A3 LT Bank Deposits).
The revolving period is targeted to end in December 2016.

This public securitization continues the series of Spanish
consumer loan transactions sponsored by BBVA.  The previous BBVA
Consumo transactions are currently performing in line with
Moody's' expectations.

The provisional portfolio of underlying assets consists of
consumer loans originated in Spain and will have a total
outstanding balance of approximately EUR1,450.0 million.

As at June 2015, the provisional pool cut shows 213,974 contracts
with a weighted average seasoning of 2.2 years.  The portfolio
consists of unsecured consumer loans used for several purposes,
such as new or used car acquisition, property improvement and
other undefined or general purposes.  Approximately 21.0% are
loans with the purpose to purchase vehicles.

According to Moody's, the transaction benefits from credit
strengths such as the granularity of the portfolio, the high
excess spread and the financial strength and securitization
experience of the originator.  However, Moody's notes that the
transaction features some credit weaknesses such as commingling
risk and the high degree of linkage to BBVA.  In addition, the
revolving structure could increase performance volatility of the
underlying portfolio.  Various mitigants have been put in place
in the transaction structure, such as early amortization
triggers, performance related triggers to stop the amortization
of the reserve fund, eligibility criteria to ensure that the
transaction is not negatively affected by the addition of new
receivables. Commingling risk is partly mitigated by the transfer
of collections to the issuer account within two days.  There is a
rating trigger in place to either transfer the issuer account to
an eligible entity or guarantee the obligations of BBVA in its
capacity as issuer account bank by an eligible guarantor upon
loss of Baa3 of BBVA's counterparty risk assessment.

Moody's analysis focused, amongst other factors, on (i) an
evaluation of the underlying portfolio of loans and the
eligibility criteria; (ii) historical performance information of
the total book and past ABS transactions; (iii) the credit
enhancement provided by subordination and the reserve fund; (iv)
the revolving structure of the transaction (v) the liquidity
support available in the transaction by way of principal to pay
interest and the reserve fund; and the (vi) overall legal and
structural integrity of the transaction.

MAIN MODEL ASSUMPTIONS

Moody's assumed a mean default rate of 8.0% combined with a
static recovery rate of 20.0% for the securitized pool.  A
coefficient of variation (CoV) of 40.0% was used as the other
main input for Moody's cash flow model ABSCORE.  The base case
mean loss rate and the CoV assumption define a portfolio credit
enhancement of 19.0%.

METHODOLOGY

The principal methodology used in this rating was Moody's
Approach to Rating Consumer Loan-Backed ABS published in Jan.
2015.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING:

Factors that may cause an upgrade of the ratings include a
significantly better than expected performance of the pool
together with an increase in credit enhancement of the notes.
Factors that may cause a downgrade of the ratings include a
decline in the overall performance of the pool and a significant
deterioration of the credit profile of the originator BBVA.

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 Class A Notes and Class
B Notes by the legal final maturity.  Moody's ratings address
only the credit risks associated with the transaction.  Other
non-credit risks have not been addressed but may have a
significant effect on yield to investors.

LOSS AND CASH FLOW ANALYSIS:

Moody's used its cash flow model ABSROM as part of its
quantitative analysis of the transaction.  ABSROM enables users
to model various features of a standard European ABS
transaction -- including the specifics of the loss distribution
of the assets, their portfolio amortization profile, yield as
well as the specific priority of payments, swaps and reserve
funds on the liability side of the ABS structure.  The model is
used to represent the cash flows and determine the loss for each
tranche. The cash flow model evaluates all loss scenarios that
are then weighted considering the probabilities of the lognormal
distribution assumed for the portfolio loss rate.  In each loss
scenario, the corresponding loss for each class of notes is
calculated given the incoming cash flows from the assets and the
outgoing payments to third parties and noteholders.  Therefore,
the expected loss or EL for each tranche is the sum product of
(i) the probability of occurrence of each loss scenario; and (ii)
the loss derived from the cash flow model in each loss scenario
for each tranche.

STRESS SCENARIOS:

In rating consumer loan ABS, the mean default rate and the
recovery rate are two key inputs that determine the transaction
cash flows in the cash flow model.  Parameter sensitivities for
this transaction have been tested in the following manner:
Moody's tested nine scenarios derived from a combination of mean
default rate: 8.0% (base case), 8.5% (base case + 0.5%), 9.0%
(base case + 1.0%) and recovery rate: 20.0% (base case), 15.0%
(base case - 5.0%), 10.0% (base case - 10%).  The model output
results for Class A Notes under these scenarios vary from Aa3
(base case) to A2 assuming the mean default rate is 9.0% and the
recovery rate is 10.0% all else being equal.  Parameter
sensitivities provide a quantitative/model indicated calculation
of the number of notches that a Moody's rated structured finance
security may vary if certain input parameters used in the initial
rating process differed.  The analysis assumes that the deal has
not aged.  It is not intended to measure how the rating of the
security might migrate over time, but rather how the initial
model output for the Class A Notes might have differed if the two
parameters within a given sector that have the greatest impact
were varied.

Moody's issues provisional ratings in advance of the final sale
of securities and the above rating reflects Moody's preliminary
credit opinions regarding the transaction only.  Upon a
conclusive review of the final documentation and the final note
structure, Moody's will endeavor to assign a definitive rating to
the above notes.  A definitive rating may differ from a
provisional rating. Please note that the actual definitive
issuance amounts of the rated classes may change from those
stated above given confirmed capital structure and final
portfolio levels.  However, this aspect should not fundamentally
impact the ratings as credit enhancement and portfolio credit
features are expected to be consistent.


UFINET TELECOM: S&P Affirms 'B' CCR, Outlook Remains Stable
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' long-term
corporate credit rating on Spain-based provider of fiber
infrastructure Ufinet Telecom Holding SLU.  The outlook remains
stable.

At the same time, S&P affirmed its 'B' issue ratings on the
company's term loan and revolving credit facility (RCF).  The
recovery rating of '3' reflects S&P's expectation of meaningful
recovery (50%-70%; lower half of the range) in the event of a
default.

The affirmation follows S&P's review of Ufinet's recent
performance and business prospects, and the update of S&P's base-
case forecasts.  The rating remains constrained by S&P's
assessment of Ufinet's highly leveraged capital structure and its
ultimate ownership by private-equity firm Cinven, which S&P
considers a financial sponsor.  This in turn affects S&P's
assessment of Ufinet's financial policy, including S&P's belief
of potential debt-funded mergers or acquisitions in the future.

On the positive side, S&P considers Ufinet's business risk
profile to be "fair," based on its extensive fiber optic network
of about 39,000 kilometers in Spain and Latin America.  S&P also
factors in the industry's high barriers to entry, owing to the
cost of expanding a fiber network and high switching costs for
customers. In addition, the company does not engage in
speculative network developments; rather, growth comes from new
customer contracts, and capital expenditures (capex) are mainly
self-funded through indefeasible right-of-use contracts (IRUs).
Furthermore, Ufinet's business model provides recurring revenues
and a sizable contractual cash revenue backlog, thanks to
multiple-year contracts on capacity leasing (dark-fiber), which
translate into healthy profit margins.

These strengths are tempered, however, by Ufinet's limited size
and high customer concentration, especially in dark-fiber
activities.  In addition, Spain's fairly mature
telecommunications market is consolidating, and competition from
better-capitalized fiber-based telecom providers is increasing.
These factors would likely keep up the price pressure in the
market, which S&P expects will be mitigated by rising volumes.

The stable outlook on Ufinet reflects S&P's expectation that
increasing demand for bandwidth from companies and telecom
carriers, as well as for dark fiber in Latin America, will
support solid revenue growth and a sound cash EBITDA margin of
44%-45%. This should translate into positive FOCF, interest
coverage exceeding 3.0x, and adequate liquidity.

S&P could consider lowering the ratings if increased competition
resulted in even lower prices for fiber-optic services, leading
to a substantial decline in margins below 40%.  S&P would also
lower its ratings if interest coverage declined below 2.5x, cash
flows turned negative, and liquidity came under pressure.

S&P views an upgrade as unlikely as long as preferred shares are
treated as debt under its criteria.  However, it could occur if
S&P continues to see positive revenue and EBITDA growth;
improving credit metrics, with the Standard & Poor's-adjusted
debt-to-cash-EBITDA ratio (excluding noncash IRUs) of durably
5.0x to 5.5x; solid cash flow generation; and interest coverage
maintained above 3.0x.



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


BANK CAPITAL: Declared Insolvent by National Bank of Ukraine
------------------------------------------------------------
Interfax-Ukraine reports that the National Bank of Ukraine has
declared bank Capital as insolvent.

"Public joint-stock company commercial bank Capital was put on
the list of insolvent banks by the National Bank of Ukraine on
July 20, 2015," the central bank, as cited by Interfax-Ukraine,
said in a report on its website.

According to Interfax-Ukraine, the report said from January 2015,
the bank was put on the list of troubled banks due to its
unsatisfactory quality of assets and the reduction of liquid
assets.  In the next 180 days, until July 20, 2015, the bank was
obliged to bring its operation in line with the requirements of
Ukrainian law, Interfax-Ukraine discloses.  Despite the efforts
of the holder of a large stake in the bank, the bank failed to
stabilize its operation, Interfax-Ukraine notes.

"The reason for this was the fact that the major part of the
bank's assets and a part of operating facilities were left on the
temporary occupied territory, and it is impossible to provide
money flow to satisfy the needs of depositors and creditors and
the proper level of risk management," Interfax-Ukraine quotes the
report as saying.

Bank Capital ranked 61st among 133 operating banks as of April 1,
2015, in terms of total assets worth UAH1.993 billion, according
to the National Bank of Ukraine.  The bank was established in
1991.


KYIVSKA RUS: Oleksandr Volkov Named Bankruptcy Commissioner
-----------------------------------------------------------
Ukrainian News Agency reports that the Deposit Guarantee Fund
said in a statement it has appointed Oleksandr Volkov as
bankruptcy commissioner of Kyivska Rus Bank.

Mr. Volkov will serve as bankruptcy commissioner for one year,
from July 17, 2015 and into July 16, 2016, Ukrainian News
discloses.

The Fund took Kyivska Rus into provisional administration on
March 20 for three months, Ukrainian News relays.

On June 17, the Fund extended the provisional administration
until July 20, Ukrainian News relates.

On July 16, the National Bank of Ukraine decided to cancel the
banking license and dissolve the insolvent Kyivska Rus bank,
Ukrainian News recounts.

Kyivska Rus Bank is based in Kyiv.



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


AFREN PLC: Postpones Meetings on Debt Restructuring
---------------------------------------------------
Angelina Rascouet at Bloomberg News reports that Afren Plc, the
U.K. explorer of Nigerian oil and gas that defaulted on a bond
payment this year, postponed meetings on debt restructuring
scheduled for this week and next.

Afren shares have been halted since July 15 after the explorer,
as cited by Bloomberg, said it couldn't accurately assess its
financial position, citing "significant uncertainty" regarding
the outcome of an internal review of its business plan, Bloomberg
relates.  The company on July 21 said shares will remain
suspended, Bloomberg relays.

The general meeting where shareholders were meant to vote on debt
restructuring was initially scheduled for July 24, while the
scheme meeting with bondholders was set to take place on July 29,
Bloomberg discloses.  They've both been adjourned until further
notice, Bloomberg notes.

Afren started a US$920 million bond restructuring process in a
London court in June, recounts.

                         About Afren plc

Afren plc, a London-based company specializing in oil and
gas exploration and production, filed a Chapter 15 bankruptcy
petition (Bankr. D. Del. Case No. 15-11452) on July 2, 2015, in
the United States, to seek recognition of its restructuring
proceedings in England.  Judge Kevin Gross presides over the U.S.
case.  L. John Bird, Esq., and Jeffrey M. Schlerf, Esq., at Fox
Rothschild LLP, serve as counsel to the Debtor in the U.S. case.


FAIRHOLD SECURITISATION: Moody's Cuts Ratings on 2 Notes to C(sf)
-----------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of four
classes of Notes issued by Fairhold Securitisation Limited.

Moody's rating action is:

  GBP329 million A Notes, Downgraded to Ca (sf); previously on
   May 4, 2015 B2 (sf) Placed Under Review for Possible Downgrade

  GBP84.7 million A(N) Notes, Downgraded to Ca (sf); previously
   on May 4, 2015 B2 (sf) Placed Under Review for Possible
   Downgrade

  GBP24 million B Notes, Downgraded to C (sf); previously on May
    4, 2015 Caa3 (sf) Placed Under Review for Possible Downgrade

  GBP5.8 million B(N) Notes, Downgraded to C (sf); previously on
   May 4, 2015 Caa3 (sf) Placed Under Review for Possible
   Downgrade

RATINGS RATIONALE

The downgrade action reflects Moody's increased concerns
regarding the refinancing of the loan due in October 2015.  In
terms of asset performance, the transaction has been stable and
Moody's continues to recognize the very good quality and
predictability of the cash flows derived from ground rents.
However, as expected in the May 2015 review when the Notes were
put on review for downgrade, the continued low interest rate and
inflation environment has resulted in an increase in the net swap
mark to market (MtM) valuation amount by GBP 236 million to GBP
507 million as per the May 2015 servicer update and this amount
ranks mostly senior to the Notes.  The updated value of the
assets as of April 2015 shows a significant increase of 27.5% in
value, but this is not sufficient to improve the Note to Value
ratios on the rated classes when the swap mark to market (MtM) is
included. Based on the external valuation, the Note to Value
ratios on classes A and B are 90.1% and 93.0% respectively,
compared to 85.4% and 89.1% previously.  Based on Moody's current
value assessment, the Note to Value ratios on classes A and B are
167.4% and 172.9% respectively.

As noted in the previous downgrade action in July 2014, there
could be an incremental risk of swap breakage costs becoming due
and payable prior to the note final maturity as the transfer fee
reserve is being depleted at a faster rate than initially
anticipated.  Considering the current level of income, the
transfer fee reserve will not be able to cover debt service
payments in the future and a draw on the liquidity facility is
expected.

Moody's downgrade reflects a base expected loss in the range of
60%-70% of the current balance, compared with 40%-50% at the last
review.  Moody's derives this loss expectation from the analysis
of the default probability of the securitized loan (both during
the term and at maturity) and its value assessment of the
collateral.

Methodology Underlying the Rating Action:

The principal methodology used in this rating was Moody's
Approach to Rating EMEA CMBS Transactions published in May 2015.

Other factors used in this rating are described in European CMBS:
2014-16 Central Scenarios published in March 2014.

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

Main factors that could lead to an upgrade or downgrade of the
ratings are (i) the swap MtM valuation and (ii) the valuation of
the underlying assets.  Both factors are subject to change;
primary sources of assumption uncertainty are (i) sensitivity of
the swap MtM amounts to future changes in interest and inflation
rates and (ii) sensitivity of asset valuation to real interest
rate expectations.  The value volatility of the assets is
substantial due to limited evidence of large transactions in the
investment market for ground rent portfolios.

MOODY'S PORTFOLIO ANALYSIS

Fairhold Securitisation Limited closed in March 2006 and was
subsequently tapped in 2007.  It represents the securitization of
a loan granted by the Issuer to Fairhold Finance Limited (the
"Borrower").  The loan's repayment relies on the receipt of
ground rent payments, warden's apartments rents and transfer fees
arising from freehold and long leasehold reversionary interests
in 406 sheltered housing developments (the "Portfolio") owned by
thirteen property owning subsidiaries of the Borrower.  The
portfolio's cash flows relate to 18,678 sheltered housing
apartments and 310 warden's apartments located in town centers
throughout the United Kingdom.

The transaction has been performing well with no issues to date.
Therefore, the very high default probability of the loan is
principally due to the refinancing risk when the loan reaches
maturity in October 2015 and as such the default risk of the
notes is concentrated in the period between the loan maturity
date and note maturity date in 2017.

Moody's is aware that ground rent portfolios are potentially
attractive to certain type of investors, in particular those
looking for exposure to long-dated, inflation-linked cash flows.
Despite this, Moody's believes that ground rent portfolios are
still a relatively niche asset class, and as such the market is
still neither particularly deep nor are ground rent portfolios
apparently liquid.  This, combined with the challenging hedging
structure caused Moody's to further revise its refinancing
outlook for the underlying loan to incorporate a very high
probability of default at the loan's maturity date.

The other driver of the ratings is Moody's valuation.  The
portfolio valuation supplied in the investor reporting follows an
actuarial approach.  There is doubt in Moody's view whether a
buyer of the portfolio would purchase solely based on an
actuarial valuation, given the uncertainty around projecting very
long-dated cash flows.  Market comparables to date have indicated
that a yield-based approach would be used to value similar
portfolios.

In the analysis, Moody's took a blended approach, giving part
value to an actuarial method and part value to a yield-based
method, to derive Moody's sustainable portfolio valuation of GBP
550 million, which is unchanged compared to last review.  The
main characteristics of the ground rents have been considered in
the yield-based approach, in particular: (i) the length of the
leases and the remaining years until lease extension, (ii) the
frequency of the rent reviews and the inflation-linked nature of
the rent reviews, (iii) the timing of the rent reviews, and (iv)
the average ground rents per unit and the costs associated with
collecting the income.  Moody's did not consider potential lease
enfranchisements and we gave no benefit for potential ancillary
income.  This results in a Moody's loan-to-value ratio of 80.6%
prior to the swap MtM and 172.9% including the whole net MtM as
per the May 2015 servicer update, significantly higher than
129.9% at previous review.

In the event of a portfolio sale and under current interest rate
conditions, it is highly likely that the hedging structure would
need to be dismantled and a termination payment would become
payable by the Issuer and Borrowers.  The requirement to pay swap
termination payments will further constrain the availability of
financing at the refinancing date.  Moody's, in its credit
assessment of the Notes, has assumed a base case termination
payment of GBP507 million based on the May 2015 servicer update.


LLOYDS BANK: S&P Affirms 'BB+srp' Rating to Class J Notes
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its portfolio swap
risk rating on Lloyds Bank Senior Financial Guarantees' (Project
Leicester) class A notes.  At the same time, S&P has placed on
CreditWatch negative its portfolio swap risk ratings on the class
B, C, D, E, F, G, H, I, and J notes.

S&P has performed its credit analysis based on the underlying
credit rating, which is either a public issuer credit rating from
Standard & Poor's or a credit rating based on the mapping of
Lloyds Bank PLC's internal rating scale to Standard & Poor's
rating scale.

On June 1, 2015, S&P updated its mapping of Lloyds Bank's
internal rating scale to Standard & Poor's rating scale.

S&P has reviewed Lloyds Bank Senior Financial Guarantees'
(Project Leicester) performance based on S&P's revised mapping
scale.  The application of the revised mapping scale in S&P's
credit analysis suggests that the required credit enhancement at
each rating level is now higher than at closing.

Lloyds Bank Senior Financial Guarantees' (Project Leicester)
unfunded credit default swap tranches, which reference a
portfolio of loans made to corporate.

The rating actions are part of S&P's regular monthly review of
European synthetic collateralized debt obligations (CDOs) and
S&P's revised mapping scale.  The actions reflect, among other
things, the effect of recent rating migration within reference
portfolios and recent credit events on referenced obligations.
S&P has used its SROC (synthetic rated overcollateralization; see
"What Is SROC?" below) tool to surveil our ratings on these
synthetic CDOs.

WHERE S&P HAS PLACED ITS RATINGS ON CREDITWATCH NEGATIVE

The SROC has fallen below 100% during the June 2015 month-end
run. This indicates to S&P that the current credit enhancement
may not be sufficient to maintain the current tranche rating.

ANALYSIS

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

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

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

WHAT IS SROC?

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

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

RATINGS LIST

Class                Rating
          To                        From

Lloyds Bank Senior Financial Guarantees
GBP1.857 Billion Senior Unfunded Tranches (Project Leicester)

Rating Affirmed

A         AAAsrp (sf)

Ratings Placed On CreditWatch Negative

B         AAAsrp (sf)/Watch Neg     AAAsrp (sf)
C         AA-srp (sf)/Watch Neg     AA-srp (sf)
D         A+srp (sf)/Watch Neg      A+srp (sf)
E         Asrp (sf)/Watch Neg       Asrp (sf)
F         A-srp (sf)/Watch Neg      A-srp (sf)
G         BBB+srp (sf)/Watch Neg    BBB+srp (sf)
H         BBBsrp (sf)/Watch Neg     BBBsrp (sf)
I         BBB-srp (sf)/Watch Neg    BBB-srp (sf)
J         BB+srp (sf)/Watch Neg     BB+srp (sf)


STANTON MBS I: Fitch Raises Rating on Class D Notes to 'CCCsf'
--------------------------------------------------------------
Fitch Ratings has upgraded Stanton MBS I plc's class A2, B C and
D notes, as follows:

  Class A1 (ISIN XS0202635040): affirmed at 'Asf', Outlook Stable

  Class A2 (ISIN XS0202637418): upgraded to 'BB+sf' from 'BBsf',
  Outlook revised to Positive from Stable

  Class B (ISIN XS0202637848): upgraded to 'BBsf' from 'Bsf',
  Outlook Stable

  Class C (ISIN XS0202638499): upgraded to 'Bsf' from 'CCCsf',
  Outlook Stable

  Class D (ISIN XS0202639208): upgraded to 'CCCsf' from 'CCsf'

Stanton MBS I is a securitization of European structured finance
assets, mainly mezzanine RMBS and CMBS assets of sub-investment
grade quality. The portfolio is actively managed by Cambridge
Place Investment Management LLP, a specialist manager, focused on
asset-backed securities and related instruments.

KEY RATING DRIVERS

The upgrades reflect the increased credit enhancement for all
notes as a result of the portfolio's continuing amortization.
Since the last review, the class A1 notes have amortized by
EUR21.5m, increasing credit enhancement by 14.9% for the class A1
notes, 9.6% for the class A2 notes, 6.8% for the class B notes,
5.3% for the class C notes and 5.1% for the class D notes.

The amortization was enabled through natural portfolio
amortization, as well as the prepayment of one significantly
sized Italian CMBS of EUR7 million and one UK corporate CDO of
EUR4m. Those two assets combined have contributed to half of the
overall amortization. Amortization is expected to slow down as
the portfolio is becoming more concentrated.

The portfolio now comprises only 41 assets, of which 34 are
performing and seven defaulted. The majority are RMBS assets
which make up for 77% of the underlying portfolio, compared with
69% at the last review. Exposure to corporate CDO assets has
decreased to 16% from 17% and to CMBS assets to 7% from 13%. The
portfolio's country concentration has also increased . The UK is
the largest country with 67% up from 60%, followed by Spain with
12% up from 10% and the Netherlands with 10% up from 9%.

Overall, the portfolio's credit quality has remained constant and
the increase in the 'CCC' and below bucket has been moderate, to
14.1% from 13.4%.

The transaction has an unusual structure whereby non-payment of
interest on the class B notes represents an event of default. In
Fitch's view, this constrains the ratings on the senior notes. An
event of default would give the class A1 noteholders, subject to
more than 50% majority, the right to enforce the security
including the sale of the underlying portfolio, which could
expose the structure to market value risk.

RATING SENSITIVITIES

In its stress tests Fitch found that reducing the recovery rate
by 25% would not affect the notes' ratings, but increasing the
default rate by 25% could lead to the downgrade of class C and D
notes by up to one category.

DUE DILIGENCE USAGE

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

DATA ADEQUACY

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

The majority of the underlying assets have ratings or credit
opinions from Fitch and/or other Nationally Recognised
Statistical Rating Organisations 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 information relied upon for
the agency's rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.


                            *********

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

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

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


                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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                 * * * End of Transmission * * *