TCREUR_Public/150731.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

            Friday, July 31, 2015, Vol. 15, No. 150



VTB AUSTRIA: S&P Affirms 'BB/B' Counterparty Credit Ratings


CYPRUS: Moody's Says 'B3' Rating Reflects High Debt Burden


AREVA: May Need EUR7 Billion in Capital Injection


ALPHAFORM AG: Court Appoints Provisional Bankruptcy Administrator
BVAG BERLINER: BaFin Commences Liquidation Procedure
GLOBAL PVQ: Date of Final Meeting Set For August 27
HEIDELBERGCEMENT AG: Moody's Changes Outlook on Ba1 CFR to Stable
YAGER PRODUCTIONS: Files For Insolvency to Secure Staff Wages


AEOLOS SA: S&P Raises Rating on EUR355MM Class A Notes to 'CCC+'
ELLAKTOR SA: S&P Raises CCR to 'CCC+', Outlook Stable
GREECE: PM Tsipras Expects Debt Relief as Early as November


EGRET FUNDING: S&P Raises Rating on Class E Notes to 'CCC'
EUROCREDIT CDO VIII: S&P Lowers Rating on Class D Notes to B+
EUROMAX III MBS: Fitch Affirms 'Csf' Rating on Class B Notes


ITALCEMENTI SPA: Moody's Put 'Ba3' CFR on Review for Upgrade
ITTIERRE SPA: To be Relaunched as Le Fabbriche Riunite
SOCIETA CATTOLICA: S&P Affirms 'BB' Rating on Subordinated Debt


KAZAKHMYS INSURANCE: Fitch Affirms 'B+' Financial Strength Rating


LEVERAGED FINANCE IV: S&P Affirms 'B+' Rating on Class V Notes
WOOD STREET IV: Moody's Affirms 'Ba3' Rating on Class E Notes


KOMPANIA WEGLOWA: Poland Urges Power Firms to Take Direct Stakes


CTC MEDIA: S&P Affirms, Then Withdraws 'BB-/B' CCRs
MEGAFON OAO: Fitch Affirms 'BB+' IDR, Outlook Stable


AERO: AMC Emerges as Best Bidder for Sempeter Plant


BBVA CONSUMO 7: Moody's Assigns B1 Rating to EUR210.3MM Notes


VOLVO AB: Moody's Affirms 'Ba1' Rating on Jr. Sub. Hybrid Bond


PETROTURK: Files for Bankruptcy Protection in Istanbul Court


CAPITAL PJSC: National Bank of Ukraine Declares Bank as Insolvent
UKRAINE: IMF Board Likely to Approve Bailout Tranche

U N I T E D   K I N G D O M

COGNITA BONDCO: Moody's Assigns 'B2' Corp. Family Rating
HIKMA PHARMACEUTICALS: Moody's Affirms Ba1 CFR, Outlook Stable
INT'L VILLAS: Working on Rescue Package Having Ceased Trading
NORDIC RECYCLING: Enters Liquidation
RSA INSURANCE: Zurich Mulls Potential Takeover Bid

THORNABY CARS: Directors Gets Prison Sentence, Disqualified

* UK: Rising Interest Rates to Hurt "Zombie Businesses", R3 Says


* BOOK REVIEW: Lost Prophets -- An Insider's History



VTB AUSTRIA: S&P Affirms 'BB/B' Counterparty Credit Ratings
Standard & Poor's Ratings Services affirmed its 'BB' long-term and
'B' short-term counterparty credit ratings on Austria-based VTB
Bank (Austria) AG (VTB Austria) and its subsidiary VTB Bank
(France) SA (VTB France).

S&P subsequently withdrew the ratings at the issuers' request.
The outlook was negative at the time of withdrawal.

The affirmation reflected S&P's view of the unchanged profile of
VTB Austria and VTB France, as well the unchanged status of these
subsidiaries within the wider group.

S&P considers VTB Austria to be a "highly strategic" subsidiary of
Russia-based VTB Bank JSC (VTB).  In accordance with S&P's
criteria, it rates "highly strategic" subsidiaries one notch lower
than the group credit profile of the parent.

S&P derives its ratings on VTB Austria and VTB France based on
expected support from the group, and S&P expects that the Russian
government will also provide support to VTB's foreign operations.
As a result, S&P don't assess the stand-alone credit strength of
VTB Austria and VTB France.

S&P thinks operating conditions for VTB will be tough in 2015, but
not materially worse than those for the Russian banking sector as
a whole.  The slowing economy in Russia will likely reduce
borrowers' payment capacity, causing VTB's asset quality to
deteriorate and its credit costs to rise.

This concern also relates to VTB Austria and VTB France, as these
banks primarily service Russian clients outside Russia, who may
also be impacted by adverse conditions in Russia.  Furthermore VTB
Austria's and VTB France's business may suffer from reputational
risks in connection with sanctions against selected Russian
companies and the overall sensitivity of public opinion in Europe
toward Russia-related entities.

As of now, the legal issues surrounding French enforcement of the
court decision for Russia to pay US$50 billion in reparations to
shareholders of YUKOS have not had an immediate impact on VTB
France's profile.  S&P also don't think it likely that potential
enforcement of the decision in Austria would have an immediate
impact on VTB Austria's business.  However, the enforcement of the
court decision adds to the banks' reputational risks, and S&P
cannot rule out longer-term negative impact to both banks'
business development.

VTB Austria and its subsidiaries (the VTB Austria subgroup)
provide access to Western European markets for its Russian parent
and form an important part of the group's international business
profile and funding strategy.  The VTB Austria subgroup has an
important function for the wider group, primarily servicing
Russian clients outside Russia and collecting deposits from
Western European clients to support the overall group's lending

The activities the VTB Austria subgroup undertakes are closely
aligned with VTB's mainstream business and customer base.  VTB
Austria serves, to a large extent, the same clients as VTB, and
the parent has committed strong operational, managerial, and
financial support.  However, S&P acknowledges that the subgroup
has some complexity in its business, reflecting its focus on
multiple markets and different business models for the markets in
Austria, Germany, and France, and thus S&P do not consider it to
be fully integrated within the wider VTB group.

S&P assumes that VTB Austria will remain a "highly strategic"
subsidiary of VTB and continue to receive operational, managerial,
and financial support from its parent.

S&P regards VTB France as a core subsidiary of VTB Austria.  S&P
understands that, despite its separate legal set up as a
subsidiary, VTB France operates more like a branch of VTB Austria.


CYPRUS: Moody's Says 'B3' Rating Reflects High Debt Burden
Cyprus's B3 government bond rating reflects the government's high
debt burden and a large stock of non-performing loans in the
Cypriot banking sector that limits banks' ability to support
economic growth, Moody's Investors Service said in a report
published today.

These factors are balanced by the external financial support
Cyprus receives from the International Monetary Fund (IMF) and the
European Stability Mechanism (ESM), as well as fiscal
consolidation measures and structural reforms the country has
implemented to revive the economy after a three-year recession.

The report, "Credit Analysis: Government of Cyprus", is now
available on Moody's subscribers can access this
report via the link at the end of this press release. The research
is an update to the markets and does not constitute a rating

"The Cypriot authorities' main challenge is to help the Cypriot
banks to deal with their high percentage of non-performing loans,
which stood at 47% of total loans," said Alpona Banerji, Vice
President -- Senior Credit Officer, and a co-author of the report.
"While the Cypriot parliament has passed new laws that should
support banks' ability to deal with these loans, we still expect
the level of non-performing loans to fall only gradually."

Despite a third year of recession in 2014, private consumption
recovered and made a positive contribution to growth following two
negative years. Moody's expects Cyprus's economy to stage a modest
recovery in 2015 with growth of around 0.5%, mainly driven by a
further recovery in private consumption and a positive
contribution from net exports.

Further signs of economic improvement, progress in fiscal
consolidation and reduced risks in the banking sector could lead
to upward pressure on Cyprus' government bond rating.

Conversely, downward pressure could stem from any weakening in the
government's commitment to restoring macroeconomic financial
stability or if the expected return to economic growth -- even at
low levels -- fails to materialize. Evidence that the banking
sector needs further recapitalization could also put pressure on
the rating.

Overall, Cyprus's fiscal performance under the program set out by
the Troika -- the European Central Bank, the European Commission
and the International Monetary Fund -- has been strong and the
government has outperformed targets. The debt-to-GDP ratio peaked
at 107.5% in 2014 and Moody's expects debt to fall to around 90%
by 2018.


AREVA: May Need EUR7 Billion in Capital Injection
Michael Stothard at The Financial Times reports that struggling
French nuclear group Areva on July 30 disclosed it needed a bigger
than expected capital injection worth EUR7 billion as the company
also unveiled a far-reaching agreement with EDF on asset disposals
and other projects.

The two companies -- both state-controlled -- agreed in principle
that EDF will pay EUR2 billion for a 75% stake in Areva's reactor
unit, called Areva NP, in a radical reshaping of the French
nuclear industry that has come after months of tense negotiations,
the FT relates.

Following the deal, Areva, which reported a EUR4.8 billion net
loss last year, will be reduced to a nuclear fuel company that
mines, enriches, and then disposes of uranium, the FT discloses.

Areva, as cited by the FT, said that overall, it would need EUR7
billion in capital over the next two years, however, meaning that
as much as EUR5 billion will be required from sources other than
EDF, the French utility group.  Much of these additional funds are
likely to come from a government-backed capital raising, the FT

According to the FT, people familiar with the situation said the
French government may have to contribute between EUR4 billion and
EUR5 billion, far more than the EUR2 billion to EUR3 billion that
ministers had hoped for just a few months ago, although the exact
level of the capital raising was not announced on July 30.

Areva is a French multinational group specializing in nuclear and
renewable energy headquartered in Paris La Defense.  It is the
world's largest nuclear company.


ALPHAFORM AG: Court Appoints Provisional Bankruptcy Administrator
The Munich District Court on July 29 appointed Dr. Hubert Ampferl
of the law practice Dr. Beck und Partner as the provisional
bankruptcy administrator for Alphaform AG.  The company had
applied for the opening of bankruptcy proceedings on July 28 on
the grounds of impending insolvency.

The administrator will quickly garner an overview of Alphaform.

Over the course of the bankruptcy proceedings, the company
intends, together with the bankruptcy administrator, to continue
to implement the restructuring efforts in accordance with IDW S6,
which were already begun with in June 2015.

The operative business at Alphaform will continue as normal.

Dr. Hanns-Dieter Aberle, Chairman of the Board at Alphaform,
explained: "Alphaform has stood for high-quality and punctual
manufacturing for years now.  The current situation will not
change this in any way whatsoever.  Our customers can continue to
rely on us as they have always done."

                        About Alphaform

Founded in 1996 and headquartered in Feldkirchen near Munich,
Alphaform AG is a g European handler for the renovation of
industrial development and production with innovative 3D printing
and rapid technologies.  Among others, Alphaform today serves the
premium manufacturers of the automotive industry, mechanical,
plant and automotive engineering, the aerospace industry, tool
making and medical technology.  Its particular areas of expertise
include complex assembly, lightweight construction and orthopaedic
implants and instruments.  It has subsidiaries in Germany,
Finland, Sweden and the UK.  Alphaform's shares are listed in the
Prime Standard segment of the Frankfurt stock exchange (code: ATF;
securities code number (WKN): 548 795).

BVAG BERLINER: BaFin Commences Liquidation Procedure
The German Federal Financial Supervisory Authority (BaFin) on
July 20 disclosed that it has decided to commence winding up
proceedings concerning the insurance company BVAG Berliner
Versicherung AG.

Ms. Dr. Petra Hilgers has been appointed liquidator of the

GLOBAL PVQ: Date of Final Meeting Set For August 27
Reuters reports that insolvency administrator of Global PVQ SE
(formerly Q-Cells SE), Henning Schorisch, announces that in
insolvency proceedings on assets, insolvency court Dessau-Rosslau
has reviewed final accounts, published final schedule and
determined date for final meeting.

Date for final meeting is on Aug. 27, 2015, the report says.

HEIDELBERGCEMENT AG: Moody's Changes Outlook on Ba1 CFR to Stable
Moody's Investors Service affirmed the provisional (P)Ba1/(P)NP
MTN program ratings, and the Ba1 ratings on the senior unsecured
notes of HeidelbergCement AG (HC) and its subsidiaries.
Concurrently Moody's has affirmed the company's Ba1 Corporate
Family Rating (CFR) and Ba1-PD Probability of default rating (PDR)
and changed the outlook to stable from positive. The rating
actions follow the announcement of HC's planned acquisition of a
45% stake in Italcementi (ITC) from its largest shareholder
Italmobiliare (unrated) for a purchase price of approximately
EUR1.67 billion which will be followed by a mandatory public cash
offer to all remaining Italcementi shareholders for the same offer
of EUR10.6 per share in cash. This offer would value 100% of
Italcementi's equity at EUR3.7 billion. The transaction, which is
expected to conclude during 2016, remains subject to customary and
regulatory approvals and will likely require disposal of certain
assets to meet potential antitrust requirements.

"A successful acquisition of Italcementi by HeidelbergCement will
create the globally leading aggregate producer and the second
largest cement producer worldwide resulting in a very strong
business profile," says Falk Frey, Senior Vice President and
Moody's lead analyst for HeidelbergCement. "Moreover, the planned
use of equity to fund a portion of the acquisition and the
opportunity to achieve meaningful cost synergies from the combined
business indicate that HeidelbergCement's financial leverage and
cash flow metrics will remain at levels supportive of its existing
Ba1 rating," Frey added.


HC has agreed to acquire a 45% stake in Italcementi from its
largest shareholder Italmobiliare, and intends to make a public
tender offer for the company's remaining shares in a transaction
that values Italcementi at EUR3.7 billion for 100% equity value.
Subject to a successful tender offer and the customary and
regulatory approvals, HC plans to fund the acquisition from a
combination of new equity issuance to Italmobiliare, proceeds from
the disposal of certain assets, including some from antitrust
review, as well as cash and capital markets financing, backstopped
by a EUR4.4 billion 3-year bridge loan.

On a pro-forma basis for a 100% ownership in ITC, Moody's
anticipates an adjusted leverage ratio of below 4.0x for 2016 for
the merged group.

Moody's views the strategic rationale of the planned merger
favorably as the merged group will be more geographically
diversified than HC on a stand-alone basis given the good
complimentary footprint of the companies. The cement industry is
highly cyclical and reliant on economic trends in individual
markets; the greater diversification provided by the combination
should result in HC having greater resilience to cyclical swings
in demand for cement, aggregates and ready-mix concrete in
individual countries.

In addition, the merger bears the potential for a sizable amount
of synergies which HC targets to reach a run-rate of EUR175
million by 2018.

The rating also takes into account the challenges related to the
timely execution of the merger especially the asset disposal
process and the possible price realisation for the disposed assets
which could have a material impact on the financial metrics of the
merged entity. Other challenges will be the realisation of the
identified synergies of EUR175 million by 2018 as well as the
combination of two businesses with different existing business


HC has a good liquidity profile. While it's normal working capital
cycle involves negative cash generation in the early part of the
calendar year, free cash generation is normally quite robust in
the second half. The liquidity position of the company has been
supported by the cash inflow of approximately EUR1.3 billion from
the sale of its building materials division to reduce debt and
bolster its cash balance as well as its EUR3 billion committed
revolving credit facility maturing in 2019, which is not intended
to be drawn for the transaction but expected to be retained as
liquidity backstop for the group. For the financing of the
transaction HC has secured a EUR4.4 billion bridge facility fully
underwritten by a bank consortium.


The stable outlook on HeidelbergCement's Ba1 rating reflects the
company's prudent funding of the acquisition of ITC and Moody's
assumption that the leverage of the merged group will be well
below 4.0x in 2016 on a pro-forma basis. However the stable
outlook also reflects the uncertainties on the timely execution
and successful realization of the acquisition in particular (1)
the successful sale of the identified non-core assets (2)
uncertainties regarding the price realisation on the disposals (3)
execution risks on the achievement of the targeted synergies with
respect to the calculated amount and the timing and (4) concerns
that the relatively benign assumptions for future performance may
not materialize.


An upgrade of HeidelbergCement's Ba1 rating is unlikely over the
next 12 to 18 months. However, the ratings could be upgraded in
case of (1) realization of synergies beyond the anticipated EUR175
million by 2018; (2) higher than expected cash inflow from the
planned asset disposals and (3) operating performance and
profitability improvements driven by volume growth and cost
synergies post merger evidenced in RCF / Net debt to increase
above 20% and a reduction of the Debt/EBITDA ratio to well below
3.5x, sustainably. Moreover, a rating upgrade to Baa3 would
require HC to commit to financial policies that balance the
interest of creditors and shareholders and maintain credit metrics
in line with an investment grade rating.


Moody's would consider downgrading HC if (1) the timeline of the
integration and achievement of synergies or realization of asset
disposal valuation would fall materially behind expectations or
(2) legal and/or regulatory requirement would lead to a
significant change in the current merger plan; (3) such events as
well as weaker-than-expected performance which would result in the
inability of the company to achieve RCF / Net debt of around 20%
by 2015 the latest which has to be sustained over the following


HeidelbergCement AG is the world's second largest cement producer
and the world leader in aggregates with strong market positions in
mature Western European countries, such as Germany, Scandinavia,
Benelux, and the UK, as well as in the emerging markets of Eastern
Europe, Africa, Asia and Turkey. HeidelbergCement generated
revenues of EUR12.6 billion for the fiscal year 2014.

YAGER PRODUCTIONS: Files For Insolvency to Secure Staff Wages
Matt Porter at IGN reports that Yager Productions GmbH has filed
for insolvency in order to secure its staff's wages.

According to the report, the studio had been working on Dead
Island 2 until publisher Deep Silver removed it from the project
earlier this month. The early termination of the contract was due
to the "respective visions" of each company falling "out of
alignment," the report says.

IGN relates that despite Yager Productions GmbH filing for
insolvency, the wider organisation of Yager should remain
unaffected, according to a statement managing director Timo
Ullmann gave to

"As [a] single-purpose company, Yager Productions GmbH was
assigned to the development of the Deep Silver title Dead Island
2," the report quotes Mr. Ullmann as saying. "The insolvency
filing is a direct result from the early termination of the
project and helps protecting [sic] our staff. In the course of the
proceedings, we gain time to sort out the best options for
reorganizing this entity."

IGN says Deep Silver is still planning on releasing Dead Island 2,
but a new developer has not been confirmed yet. Meanwhile Yager is
still working on the upcoming Dreadnought, adds IGN.  Yager
Productions GmbH -- is a computer and
video game developer based in Berlin, Germany.


AEOLOS SA: S&P Raises Rating on EUR355MM Class A Notes to 'CCC+'
Standard & Poor's Ratings Services raised to 'CCC+' from 'CCC-'
its credit rating on Aeolos S.A.'s EUR355 million floating-rate
asset-backed class A notes.

The upgrade of the class A notes follows S&P's July 21, 2015
upgrade to 'CCC+' of its long-term sovereign credit rating on
Greece (Hellenic Republic), which acts as the guarantor of Aeolos.

S&P's current counterparty criteria link its rating on Aeolos'
class A notes to its long-term sovereign rating on Greece as the

Therefore, following S&P's recent rating action on Greece, S&P has
consequently raised to 'CCC+' from 'CCC-' its rating on Aeolos'
class A notes.

Aeolos is a Greek repack transaction.  The underlying collateral
consists of receivables due from The European Organisation for the
Safety of Air Navigation for the provision of air traffic control
services in Greece.


Aeolos S.A.
EUR355 mil floating-rate asset backed notes

                                     Rating       Rating
Class       Identifier               To           From
A           XS0140322743             CCC+         CCC-

ELLAKTOR SA: S&P Raises CCR to 'CCC+', Outlook Stable
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Greek concessions and construction group Ellaktor
S.A. to 'CCC+' from 'CCC-'.  At the same time, S&P affirmed the
short-term corporate credit rating on Ellaktor at 'C'.

The rating action on Ellaktor reflects S&P's recent upgrade of

S&P continues to cap the rating on Ellaktor at the level of the
sovereign rating because the group does not pass S&P's liquidity
stress test, which assumes a sovereign default.  The continuation
of capital controls in Greece has led S&P to consider the group's
cash held in Greek banks as restricted in S&P's liquidity base-
case scenario, resulting in a lower starting point for S&P's
stress test.  S&P assess the group's liquidity as "less than
adequate" rather than "adequate."  Ellaktor currently holds around
50% of its total cash balances in Greek banks, which S&P believes
puts pressure on the group's liquidity position.

S&P continues to assess Ellaktor's stand-alone credit profile at
'b-'.  This reflects S&P's view that the deteriorating
macroeconomic situation in Greece has weakened the group's
business and financial prospects, given Ellaktor generates around
80%-90% of its earnings in Greece and is reliant on government and
bank funding from the country.  The group has a high level of
indebtedness to support, with reported total debt of around
EUR1.5 billion as of March 31, 2015 (down from around
EUR1.6 billion as of Dec. 31, 2014).  On a Standard & Poor's-
adjusted basis, total debt was around EUR1.3 billion and debt to
EBITDA was around 5.7x as of Dec. 31, 2014.

S&P assesses Ellaktor's liquidity as "less than adequate" rather
than "adequate" because of the capital controls imposed in Greece
since June 29, 2015.  S&P estimates that sources of liquidity
cover uses of liquidity by less than 1x.

S&P estimates these principal liquidity sources over the next 12

   -- Around EUR200 million of unrestricted cash and liquid
      investments (this excludes cash held in Greek banks, which
      S&P considers to be restricted, as well as cash in excess
      of the debt in the Attiki Odos special-purpose vehicle as
      S&P does not believe that this is fully available to the
      group); and

   -- Around EUR100 million of cash funds from operation.

S&P estimates these principal liquidity uses over the next 12

   -- Around EUR275 million of short-term liabilities and
      scheduled debt repayments; and

   -- Around EUR85 million of capital expenditures.

The stable outlook on Ellaktor reflects that on Greece.

S&P will likely take a similar rating action on Ellaktor following
any further rating action on Greece, with the proviso that a
further upgrade of Greece would be unlikely to lead to an upgrade
of Ellaktor greater than one notch, assuming the group's stand-
alone credit profile remains 'b-'.

Independent of any rating action on Greece, S&P could take a
positive rating action on Ellaktor if the capital controls were
removed and this resulted in an improvement of S&P's liquidity
assessment and liquidity stress test.

S&P could take a negative rating action on Ellaktor if S&P
expected a further deterioration in the company's credit metrics,
or if its liquidity position weakened due to its reliance on
funding from the Greek government and Greek banks.

GREECE: PM Tsipras Expects Debt Relief as Early as November
Niki Kitsantonis at The New York Times reports that as
representatives of Greece's international creditors started
arriving on July 29 in the Greek capital for a new round of tough
negotiations, Prime Minister Alexis Tsipras said the country would
get relief from its huge debt burden as early as November.  He
also hit out at dissenters within his party, saying that securing
a new bailout deal was a priority, The Times relates.

Amid growing opposition within his leftist Syriza party over the
prospect of fresh austerity required under Greece's third
financial rescue in five years, Mr. Tsipras accused dissenters of
seeking to manipulate the result of this month's referendum on
bailout terms by claiming it was tantamount to a mandate for a
Greek exit from the eurozone, The Times relays.

"The Greek people voted no to a bad deal, they did not vote for an
exit from the euro," The Times quotes Mr. Tsipras as saying.

According to The Times, Mr. Tsipras told a Greek radio station
"Grexit will be on the table until debt relief comes".  However,
he said, Athens had secured a commitment to debt relief from
creditors as part of the latest bailout package, worth as much as
EUR86 billion, or about US$95 billion, The Times notes.

"Debt relief will come after the first review of the program in
November," Mr. Tsipras, as cited by The Times, said.

Mina Andreeva, a spokeswoman for the European Commission, said
that, in order to be eligible for debt relief, Greece would need
to reach an agreement on the third bailout and then successfully
complete the first review by representatives of the country's
creditors -- the fund, the central bank and the other eurozone
countries, The Times relates.

She said there was "constructive cooperation with the Greek
authorities" in Athens this week and that negotiations would
"progress as swiftly as possible", The Times relays.

As dissenters pushed for a Syriza party congress to discuss its
direction and the bailout, Mr. Tsipras said that sealing an
agreement with creditors in August was the current priority and
that a congress could be held in September, The Times discloses.


EGRET FUNDING: S&P Raises Rating on Class E Notes to 'CCC'
Standard & Poor's Ratings Services raised its credit ratings on
Egret Funding CLO I PLC's class A, B, and C notes.  At the same
time, S&P has affirmed its rating on the class D notes and lowered
its rating on the class E notes.

The rating actions follow S&P's review of Egret Funding CLO I's
performance based on the June 2015 payment date report.  S&P has
applied its relevant criteria and conducted its credit and cash
flow analysis.

The transaction is amortizing and the class A notes have partially
amortized since the end of the reinvestment period in 2012.  The
class A notes' current outstanding balance is EUR32.7 million
(down from EUR169.40 million since our previous review on Jan. 23,

S&P has observed that the overcollateralization tests for the
class D and E notes are currently passing.  These tests were
failing in S&P's previous review.  The class A, B, and C notes'
overcollateralization test cushions (the difference between the
current value and the documented threshold) have increased during
the same period.  S&P has also observed a positive rating
migration in the pool.  The transaction's average obligor exposure
has increased since S&P's previous review (mainly due to paydown
of the assets in the pool).

S&P subjected the capital structure to its cash flow analysis,
based on the methodology and assumptions outlined in S&P's
corporate collateralized debt obligation (CDO) criteria, to
determine the break-even default rates for each class of notes.
S&P used the reported portfolio balance that it considered to be
performing, the principal cash balance, the weighted-average
spread, which has decreased since S&P's previous review (to 3.42%
from 3.86%), and the weighted-average recovery rates (WARR) that
S&P considered to be appropriate.  S&P incorporated various cash
flow stress scenarios using various default patterns, levels, and
timings for each liability rating category, in conjunction with
different interest rate stress scenarios.

Taking into account the results of S&P's credit and cash flow
analysis and developments in the transaction since S&P's previous
review, it considers the available credit enhancement for the
class A, B, and C notes to be commensurate with higher ratings
than previously assigned.  S&P has therefore raised its ratings on
these classes of notes.

In considering a proposed rating for a tranche, S&P ascertain
whether the available credit enhancement is sufficient to address
S&P's applicable supplemental tests and the stresses it applies in
its credit and cash flow analysis.  Any of these analyses may
constrain S&P's rating on the tranche.  This test assesses whether
a CDO tranche has sufficient available credit enhancement to
withstand specified combinations of underlying asset defaults
(based on the rating on the underlying assets).  S&P has affirmed
its 'B+ (sf)'rating on the class D notes based on the application
of its supplemental tests.

S&P's credit and cash flow analysis suggests that its rating on
the class E notes is commensurate with a lower rating level than
'CCC+', mainly due to lower recovery rates compared with S&P's
previous review.  The supplemental tests also suggest a rating
level below 'CCC+', mainly due to high portfolio concentration.
S&P has therefore lowered to 'CCC (sf)' from 'CCC+ (sf)' its
rating on the class E notes.

Egret Funding CLO I is a CLO transaction, which closed in December
2006.  The transaction securitizes loans to primarily speculative-
grade corporate firms.


Egret Funding CLO I PLC
EUR432.9-mil floating-rate notes

                                   Rating       Rating
Class      Identifier              To           From
A          XS0274759652            AAA (sf)     AA+ (sf)
B          XS0274759900            AAA (sf)     AA- (sf)
C          XS0274760155            A+ (sf)      BBB+ (sf)
D          XS0274760312            B+ (sf)      B+ (sf)
E          XS0274760585            CCC (sf)     CCC+ (sf)

EUROCREDIT CDO VIII: S&P Lowers Rating on Class D Notes to B+
Standard & Poor's Ratings Services took various credit rating
actions in Eurocredit CDO VIII Ltd.

Specifically, S&P has:

   -- Raised to 'AA+ (sf)' from 'A+ (sf)' its rating on the class
      C notes;

   -- Lowered to 'B+ (sf)' from 'BB+ (sf)' its rating on the
      class D notes;

   -- Affirmed its 'B- (sf)' rating on the class E notes; and

   -- Withdrawn its 'AA+ (sf)' rating on the class B notes.

The rating actions follow S&P's review of the transaction's
performance.  S&P performed a credit and cash flow analysis and
assessed the support that each participant provides to the
transaction by applying S&P's current counterparty criteria.  In
S&P's analysis, it used data from the latest available trustee
report dated July 2015.

Eurocredit CDO VIII has been amortizing since the end of its
reinvestment period in January 2011.  Since S&P's previous review
on May 6, 2014, the aggregate collateral balance has further
decreased due to amortization of the collateral portfolio.

S&P has subjected the capital structure to a cash flow analysis to
determine the break-even default rates for each rated class of
notes at each rating level.  In S&P's analysis, it used the
reported portfolio balance that it considered to be performing,
the current weighted-average spread as stated in the July report,
and the weighted-average recovery rates calculated in line with
S&P's corporate collateralized debt obligation (CDO) criteria.
S&P applied various cash flow stress scenarios, using four
different default patterns, in conjunction with different interest
rate and currency stress scenarios.

From S&P's analysis, it has observed that the deleveraging of the
senior notes has increased the available credit enhancement for
all classes of notes compared with S&P's previous review.  S&P
also notes that the non-euro-denominated asset exposure has
dropped over the same period.  The issuer has entered into
portfolio currency swap and currency options agreements to
mitigate the risk of foreign-exchange-related losses.  In S&P's
analysis, S&P has also applied its nonsovereign ratings criteria.
When applying stresses at the 'AAA' and 'AA+' rating levels, S&P
has given credit to 10% of the transaction's collateral balance,
corresponding to assets based in countries rated lower than 'A-',
in S&P's calculation of the aggregate collateral balance.

"Our credit and cash flow analysis indicates that the available
credit enhancement for all classes of notes is commensurate with
higher ratings than previously assigned, despite their exposure to
counterparty and sovereign risk.  This is mainly due to the
amortization of the class A and B notes.  However, the application
of the largest obligor default test constrains our ratings on the
class C and D notes at 'AA+ (sf)' and 'B+ (sf)', respectively.
This is a supplemental stress test that we outline in our
corporate CDO criteria.  We took into account the available credit
enhancement after applying the largest obligor test (assuming 5%
recoveries on defaulted assets).  We have therefore raised to 'AA+
(sf) from 'A+ (sf)' our rating on the class C notes, and lowered
to 'B+ (sf)' from 'BB+ (sf)' our rating on the class D notes," S&P

"The supplemental test results for the class E notes (the most
junior in the capital structure) imply a lower rating than
previously assigned.  However, based on the credit and cash flow
analysis, we have observed that the class E notes are not
currently vulnerable to nonpayment of interest and principal (when
due).  We have therefore affirmed our 'B- (sf)' rating on the
class E notes," S&P added.

Based on the July 2015 trustee report, S&P noted that all
outstanding interest and principal on the class B notes was fully
paid.  S&P has therefore withdrawn its 'AA+ (sf)' rating on the
class B notes.

Eurocredit CDO VIII is a managed cash flow collateralized loan
obligation (CLO) transaction that securitizes loans to primarily
European speculative-grade corporate firms.  The transaction
closed in December 2007 and is managed by Intermediate Capital
Group PLC.


Eurocredit CDO VIII Ltd.
EUR636 mil senior and secured deferrable floating-rate notes

                                   Rating        Rating
Class       Identifier             To            From
B           29872DAB1              NR            AA+ (sf)
C           29872DAC9              AA+ (sf)      A+ (sf)
D           29872DAD7              B+ (sf)       BB+ (sf)
E           29872DAE5              B- (sf)       B- (sf)

NR--Not rated.

EUROMAX III MBS: Fitch Affirms 'Csf' Rating on Class B Notes
Fitch Ratings has affirmed Euromax III MBS Ltd as:

   -- EUR34 mil. Class A-1 (XS0158773324): affirmed at 'CCCsf'
   -- EUR6 mil. Class A-2 (XS0158774991): affirmed at 'CCsf'
   -- EUR12 mil. Class B (XS0158775022): affirmed at 'Csf'

Euromax III MBS Ltd is a cash arbitrage securitization of
structured finance assets.


The affirmation reflects the transaction's stable performance over
the last 12 months.  The class A-1 notes have amortized by
EUR4.6 mil., resulting in an increase in credit enhancement of
1.32%.  Pay down of the portfolio, however, has been slow with
only EUR3.5 mil. received and 57% received from one asset paying
down in full.  The remaining amortization was provided by
principal collections in the last 12 months, held in cash, as well
as interest diverted from the class C and D notes.

The transaction is past its expected maturity of December 2014 and
as a result step up coupons are in effect.  The spread on the
class A-1 has increased to 0.75% from 0.4%, the class A-2 to 0.75%
from 0.55% and the class B to 1.5% from 0.9%.  Due to the increase
in the cost of liabilities the excess spread generated by the
transaction has been reduced.

However, Fitch calculates that, based on the current weighted
average spread and senior fees paid in the past 12 months,
interest collection is currently sufficient to pay senior fees and
interest on the class A-1, A-2 and B notes.  The class B notes
have the ability to defer interest; however, a missed interest
payment on the class A-1 or A-2 notes would be an event of default
for the transaction.  Given the concentration of the portfolio,
with the two largest assets representing a combined 22.5% of the
portfolio and rated 'CCC' and 'CC', interest coverage is sensitive
to future defaults.

Within the portfolio 20.4% have been upgraded, compared with 5.3%
downgraded.  Most significantly the proportion of 'A' rated assets
has increased to 13.5% from 1.4% with the upgrade of two assets.
Fifty-five per cent of the portfolio is, however, rated 'CCC' or
below and there are two assets on Negative Outlook.  RMBS assets
represent 76% of the portfolio compared with 72% a year ago, with
a subsequent 4% fall in CMBS assets.


Fitch tested the impact on the ratings of bringing the maturity of
the assets in the portfolio to their legal maturity and found that
this would lead to a downgrade of the class A-1 notes.


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


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

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.


ITALCEMENTI SPA: Moody's Put 'Ba3' CFR on Review for Upgrade
Moody's Investors Service placed on review for upgrade the Ba3
corporate family rating (CFR) and the Ba3-PD probability of
default rating (PDR) of Italcementi S.p.A. (ITC), as well as the
(P)Ba3 rating for its MTN programme, Ba3 senior unsecured ratings
of its subsidiary Italcementi Finance S.A. and Ba2 senior
unsecured rating of its subsidiary Ciments Francais S.A. following
its proposed acquisition by HeidelbergCement AG (HC). The NP/(P)NP
short term rating remains unaffected by this rating action and is
not on review.


"The review was triggered by the announcement that
HeidelbergCement will acquire the 45% interest in Italcementi
owned by Italimobiliari, and will also make a tender offer to
acquire the company's remaining public shares. The review for
upgrade of Italcementi's ratings will consider the potential for
the company's credit profile to be strengthened as part of the
larger and less financially leveraged HeidelbergCement Group,"
said Falk Frey.

The review will focus on the treatment of Italcementi's existing
debt obligations within the capital structure of the combined
group, including whether Italcementi's debt is explicitly
supported by Heidelberger. In the absence of any such support the
review will consider the stand alone financial profile of
Italcementi within the HeidelbergCement group and the adequacy of
financial information to maintain a rating.

Moody's expects to conclude the review shortly after the closure
of the transaction, which is expected for end 2016.


Moody's considers Italcementi's liquidity profile as adequate
based on Italcementi's cash on balance sheet of
approximatelyEUR590 million as per March 31, 2015 and
approximately EUR1.4 billion availability under undrawn lines of
credit. Italcementi has access to a EUR450 million revolving
credit facility maturing in June 2019 including financial
covenants with a maximum net debt / EBITDA of 3.75x to be tested
on a semi-annual basis. Under our base case Italcementi is
expected to generate an FFO above EUR500 million over the next 12
months. This should be sufficient to fund short term needs of cash
mainly consisting of working cash, seasonal W/C swings, capex,
debt repayments and dividends. Italcementi has a well-spread
maturity profile with manageable maturities over the next five
years and a liquidity headroom of 3.5 years.


Italcementi's ratings could be upgraded once the merger with
HeidelbergCement has been concluded successfully and the degree of
upgrade would be dependent on the treatment of Italcementi's debt
within the HeidelbergCement group's capital structure. If the debt
is fully guaranteed by HeidelbergCement the rating could be
upgraded to the rating of HeidelbergCement.

Negative rating pressure would build if the announced merger could
not conclude, and, if at the same time Italcementi's standalone
metrics, such as debt/EBITDA were to move towards 6.0x and RCF/net
debt to fall below 10% sustainably. In addition, weakening
covenant headroom, which would put Italcementi's access to
liquidity at risk, would be a negative rating driver.


The Italcementi group, headquartered in Bergamo, Italy, is one of
the top five cement producers globally, with an installed cement
capacity in excess of 60 million tons and sales of nearly EUR4.2
billion in 2104. The group's cement and clinker business, which
accounts for more than two-thirds of total sales, is supplemented
by aggregates and ready-mix concrete businesses. Italcementi is
active in 22 countries, with an emphasis on the Mediterranean

ITTIERRE SPA: To be Relaunched as Le Fabbriche Riunite
Sportswear International reports that Ittierre SpA will be saved
thanks to investment company IKF S.p.A.

Sportswear International relates that after the Isernia tribunal
has given its approval and creditors gave their OK to the save the
company from insolvency by its previous owners (Oti srl by Antonio
Rosati and Antonio Bianchi), the new company Le Fabbriche Riunite
will relaunch Ittierre's activities by hiring part of the Ittierre
company through its previous owner Oti Srl for EUR300,000. The
contract will last for two years until end June 2017.

The report says involved in the operations are Mario Galetti,
president of IKF Advisory S.p.A., Massimo Suppancig, CEO of the
new company, and previously operating as top manager for Escada,
Hugo Boss, Valextra as well as formerly involved in saving
Ittierre when facing an extraordinary administration process
phase.  Member of the board of directors is also Flavio Sciuccati,
senior partner of The European House -- Ambrosetti and Director of
Global Fashion Unit, according to the report.

Sportswear International notes that the new company will start
working on two licensing agreements and a productive agreement.
Aim of the company is to focus on designer brands, premium lines,
denim collections and accessories, the report states.

Initially, they will hire 40 people even if the true development
phase will start from 2016 onwards. From next year on also, a
logistic division could start operating. Therefore they might hire
15 more employees, reports Sportswear International.

The productive hub is the same one previously occupied by the
former Ittierre, the report notes.

"IKF has already made a request to hire about 7,000 sq. meters of
the total space," the report quotes Suppancig as saying. "In any
case the whole productive process will remain in the Molise
region. We will involve local partners and productive specialists
of this area that have already worked for Ittierre. The ability of
this area's workers has a special added value: they can produce
top quality Made in Italy products at competitive prices."

                           About Ittierre

Ittierre S.p.A. is one of the operating subsidiaries of Italy
Holding S.p.A. -- an Italy-based
company operating in the luxury goods market.  The Company and its
subsidiaries design, produce and distribute apparel, accessories,
eyewear and perfumes.  Its brand portfolio embraces: owned brands,
Gianfranco Ferre, Malo, Exte, as well as licensed brands, Versace
Jeans Couture, Versace Sport, Just Cavalli, C'N'C Costume National
and Galliano.  The Company's production facilities are located in
Italy.  IT Holding SpA has a worldwide distribution network,
including 39 directly operated stores, 274 monobrand stores and
over 6,000 department and specialty stores.

SOCIETA CATTOLICA: S&P Affirms 'BB' Rating on Subordinated Debt
Standard & Poor's Ratings Services affirmed its 'BBB-'
counterparty credit and financial strength ratings on Italian
insurer Societa Cattolica di Assicurazione (Cattolica).  The
outlook is stable.

S&P also affirmed its 'BB' rating on Cattolica's subordinated debt

S&P now expects Cattolica's growth to be less capital-intensive
than it previously forecast, making it more likely to preserve the
level of capital adequacy it reached at end-2014.  S&P has thus
revised upward its opinion of Cattolica's prospective capital and
earnings and its financial risk profile to upper adequate.  The
revision is based on Cattolica's changes to its life market
strategy; more-robust property/casualty (P/C) reserving practices;
and improved capital management discipline, implemented to comply
with the Solvency II framework.

S&P is revising Cattolica's indicative stand-alone credit profile
(SACP) to 'bbb+' from 'bbb' as S&P combines its view of the
improved financial risk profile with an unchanged view of the
satisfactory business risk profile.

As bond yields have declined, reducing the attractiveness of
traditional products, and following the introduction of Solvency
II, the Italian life insurance market, including Cattolica, has
focused on increasing the proportion of unit-linked products in
its policies, including through hybrid policies.  To further
accelerate the shift, Cattolica has also raised the pricing of its
traditional policies.

In S&P's view, Cattolica has made significant progress in
strengthening its P/C loss reserves; it no longer presents any
material deficiencies in its P/C reserves.  The portfolio of
third-party liability contracts has been restructured and
Cattolica has better control over claims, even if further marginal
strengthening may occur.

Based on these improvements, S&P now incorporates an 11% increase
in capital requirements until 2017, reflecting premium growth and
a slight increase in asset allocation to properties and equities.
Under S&P's base-case scenario, it expects the group to report a
rising net profit (after minority interests) of EUR110 million to
EUR140 million between 2015 and 2017.  S&P's base-case scenario
also incorporates a dividend payout ratio of 60% of group net
profits after minorities.

Under S&P's criteria, an entity that has an indicative SACP above
S&P's sovereign rating on the country where the entity has a
material domestic investment exposure would need to pass an
hypothetical sovereign default stress test to be rated above the
sovereign.  The ratings on Cattolica are therefore constrained by
those on Italy.

S&P considers Cattolica is unlikely to pass the test, given its
high domestic investment exposure, relative to regulatory capital.
As of Dec. 31, 2014, Cattolica had about EUR12 billion in Italian
government securities, which would represent about 6x the
company's shareholders' equity.

The stable outlook mirrors that on Italy, reflecting Cattolica's
very large domestic asset exposure relative to its capital.  Any
rating action on the sovereign could lead to a similar action on

S&P could raise the ratings on Cattolica if S&P was to raise its
ratings on Italy, which would indicate S&P's view of lower
sovereign risk.

S&P could lower the ratings if it was to lower its ratings on


KAZAKHMYS INSURANCE: Fitch Affirms 'B+' Financial Strength Rating
Fitch Ratings has affirmed JSC Kazakhmys Insurance Company's
(Kazakhmys Ins) Insurer Financial Strength (IFS) rating at 'B+'
and its National IFS rating at 'BBB(kaz)'.  The Outlooks are


The ratings reflect Kazakhmys Ins's challenges related to the
planned growth strategy and high dependence on outwards
reinsurance.  They also factor in the insurer's solid, albeit
moderately declining profitability, strong track record of
shareholder support and a fairly robust capital position.

Kazakhmys Ins reported strong premium growth of 49% on a gross
basis and 133% on a net basis in 1H15 compared with 1H14.  Fitch
views this growth as modestly diversified since it was mainly
supported by the compulsory motor third party liability and
workers' compensation insurance.

The insurer improved its underwriting result to a positive KZT152
million in 2014 from a negative KZT248 million in 2013, driven by
a sixfold increase in net earned premiums.  Subrogation income
rose sharply to KZT380 million from KZT101 million, which
supported the improved underwriting profitability.  Fitch will
monitor the quality of the relevant receivables in the near term.
Supported by both strengthened underwriting and investment
results, net income improved to KZT191 million in 1H15 from a
negative KZT123 million in 1H14 (2014: KZT174 million).

Kazakhmys Ins has rescheduled its planned KZT6bn capital increase
to 2H15 from 1H15, due to longer-than-expected registration
procedures.  The capital is expected to be provided by current
shareholders.  Kazakhmys Corporation, the proximate shareholder of
Kazakhmys Ins, also plans to increase its share in the insurer to
24.9% from the current 9.99%.

The main aim of the capital increase is to raise Kazakhmys Ins's
net retention (calculated as a percentage of shareholders' equity)
closer to the maximum level allowed by the regulator and to
support business growth.  Kazakhmys Ins has ambitious plans of
achieving strong top line growth and developing a balanced
portfolio of commercial and personal risks.  Fitch views
maintenance of underwriting discipline and prudent expense
management as important rating factors for the company in its
initial growth phase in the open market.

Based on Kazakhmys Ins's regulatory solvency and Fitch's internal
risk-adjusted capital assessment, capitalization is viewed as
fairly robust.  This reflects the significant use of reinsurance
and low net retained business volumes relative to shareholders'
equity.  However, Fitch believes the insurer's capital is at risk
of a repeat of the significant write-offs of reinsurance
receivables and negative revaluations of equity instruments seen
in recent years.

Kazakhmys Ins continues to cede the majority of its premiums with
the level of its reinsurance utilization at 82% in 2014 and 88% in
1H15.  The structure of outward reinsurance has been characterized
by volatile reinsurance commissions and write-offs of receivables,
leading to fluctuations in claims recoveries.  Kazakhmys Ins uses
reinsurance primarily to protect its large commercial accounts.
Fitch expects reinsurance use to decline once the company raises
additional capital and increases its underwriting capacity,
although this is likely to occur over the long-term.


An upgrade could result from successful capital increase and
execution of the insurer's growth strategy, with continuing
underwriting profitability and diversification of the portfolio.

The ratings could be downgraded if the insurer fails to execute
its planned growth strategy, reports underwriting losses and
demonstrates inability to manage expenses prudently.


LEVERAGED FINANCE IV: S&P Affirms 'B+' Rating on Class V Notes
Standard & Poor's Ratings Services took various credit rating
actions in Leveraged Finance Europe Capital IV B.V.

Specifically, S&P has:

   -- Raised its ratings on the class II and III notes;
   -- Affirmed its ratings on the class IV and V notes; and
   -- Withdrawn its rating on the class I-D notes and the
      revolving notes.

The rating actions follow S&P's analysis of the transaction's
recent performance and the application of its relevant criteria.

Since S&P's previous review on July 30, 2013, the rated notes have
benefited from an increase in par coverage resulting from the
amortization of the class I-D and I-N notes and the revolving

                     Notional    Current    Par
          Current    as of July  par        coverage
          notional   2013        coverage   as of July
Class     (mil. EUR) (mil. EUR)  (%)        2013 (%) Interest
I-D       -          22.13       -          32       6mE+0.22% N
I-N       -          134.71      -          32       6mE+0.22% N
Revolving -          25.44       -          32       6mE+0.22% N
II        20.71      26.30       83         22       6mE+0.38% N
III       11.70      11.70       63         17       6mE+0.62% Y
IV        19.90      19.90       29         9        6mE+1.55% Y
V         3.70       3.70        22         8        6mE+4.00% Y
Sub.      27.20      27.20       0          0        N/A      N/A

6mE -- Six-month EURIBOR (Euro Interbank Offered Rate).
DI -- Deferrable interest.
N/A -- Not applicable.

S&P has applied its corporate collateralized debt obligation (CDO)
criteria to perform its credit and cash flow analysis.

The results of S&P's analysis show that the available credit
enhancement for the class II and III notes is now commensurate
with higher ratings than those currently assigned.  S&P has
therefore raised its ratings on these classes of notes.

Due to the high level of portfolio concentration (20 obligors),
the application of S&P's largest obligor test (a supplemental
stress test that it outlines in its corporate CDO criteria) is
still capping S&P's ratings on the class IV and V notes at their
current levels.  S&P has therefore affirmed its ratings on these
classes of notes.

The class I-D notes and the revolving notes have fully amortized.
Therefore, S&P has withdrawn its ratings on the class I-D notes
and the revolving notes.

Leveraged Finance Europe Capital IV is a cash flow collateralized
loan obligation (CLO) transaction that securitizes loans to
European speculative-grade corporate firms, and is managed by BNP
Paribas Asset Management.  The transaction closed in October 2006
and its reinvestment period ended in November 2012.


Leveraged Finance Europe Capital IV B.V.
EUR338.6 mil floating-rate notes and revolving facility

Class         Identifier             To            From
I-D           XS0269247150           NR            AA+ (sf)
Revolving                            NR            AA+ (sf)
II            XS0269247747           AA+ (sf)      A+ (sf)
III           XS0269248042           AA (sf)       BBB+ (sf)
IV            XS0269248398           BB+ (sf)      BB+ (sf)
V             XS0269248638           B+ (sf)       B+ (sf)

NR--Not rated

WOOD STREET IV: Moody's Affirms 'Ba3' Rating on Class E Notes
Moody's Investors Service has upgraded the ratings on these notes
issued by Wood Street CLO IV B.V.:

  EUR46.75 mil. Class B Senior Secured Floating Rate Notes due
   2022, Upgraded to Aaa (sf); previously on June 25, 2014,
   Upgraded to Aa1 (sf)

  EUR44 mil. Class C Senior Secured Deferrable Floating Rate
   Notes due 2022, Upgraded to A1 (sf); previously on June 25,
   2014 Upgraded to A3 (sf)

  EUR24.75 mil. Class D Senior Secured Deferrable Floating Rate
   Notes due 2022, Upgraded to Baa3 (sf); previously on June 25,
   2014, Upgraded to Ba1 (sf)

  EUR7 mil. Class X Combination Notes due 2022, Upgraded to Aa3
   (sf); previously on June 25, 2014 Upgraded to A2 (sf)

Moody's also affirmed the ratings on these notes issued by Wood
Street CLO IV B.V.:

  EUR302.5 mil. (current oustanding balance of EUR76,372,600)
   Class A-1 Senior Secured Floating Rate Notes due 2022,
   Affirmed Aaa (sf); previously on Jun 25, 2014 Affirmed
   Aaa (sf)

  EUR55 mil. Class A-2 Senior Secured Floating Rate
   Notes due 2022, Affirmed Aaa (sf); previously on June 25, 2014
   Upgraded to Aaa (sf)

  EUR19.25 mil. (current oustanding balance of EUR16,150,100)
   Class E Senior Secured Deferrable Floating Rate Notes due
   2022, Affirmed Ba3 (sf); previously on Jun 25, 2014 Affirmed
   Ba3 (sf)

Wood Street CLO IV B.V., issued in January 2007, is a
collateralized loan obligation backed by a portfolio of mostly
high yield European loans.  It is predominantly composed of senior
secured loans.  The portfolio is managed by Alcentra Limited.  The
transaction's reinvestment period ended in March 2013.


The rating upgrades of the notes are primarily a result of the
redemption of the senior Notes and subsequent increases of the
overcollateralization ratios of all Classes of Notes.  Moody's
notes that the Class A-1 Notes have redeemed by approximately EUR
226.1 million (or 75% of their original balance).  As a result of
the deleveraging the OC ratios of the remaining Classes of Notes
have increased significantly.  According to the June 2015 trustee
report, the Classes A/B, C, D and E OC ratios are 163.95%,
131.48%, 118.30% and 111.03% respectively compared to levels just
prior to the payment date in March 2015 of 149.74%, 125.23%,
114.67% and 108.69%.

The rating of the combination notes addresses the repayment of the
rated balance on or before the legal final maturity.  The rated
balance at any time is equal to the principal amount of the
combination notes 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 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 analysed the underlying collateral pool as having a
performing par and principal proceeds balance of EUR242.3 million,
a weighted average default probability of 22.36% (consistent with
a WARF of 3117), a weighted average recovery rate upon default of
47.94% for a Aaa liability target rating, a diversity score of 19
and a weighted average spread of 3.95%.

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 a recovery of 50% for the 94.11% of the portfolio
exposed to first-lien senior secured corporate assets upon default
and of 15% of the remaining non-first-lien loan corporate assets
upon default.  In each case, 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.

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 lowered the weighted average spread by 30 basis
points; 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
note, 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 behaviour and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties because of embedded ambiguities.

  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 by 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.

  Around 12.01% 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

  Recovery of 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'

In addition to the quantitative factors that Moody's explicitly
modeled, 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.


KOMPANIA WEGLOWA: Poland Urges Power Firms to Take Direct Stakes
Agnieszka Barteczko at Reuters reports that Rzeczpospolita daily
on July 29 said Poland is again trying to persuade power firms to
take direct stakes in Kompania Weglowa as launching a fund to help
the miner would take too long.

The Polish government is working hard to keep the European Union's
biggest coal miner alive as its bankruptcy would leave thousands
of potential voters without jobs ahead of a general election in
October, Reuters notes.

According to Reuters, the paper said the government is trying to
convince the country's biggest power producer PGE and its smaller
rival Energa, as well as gas distributor PGNiG, to buy KW shares

Rzeczpospolita daily said the government's plan now is for the
fund to inject PLN800 million into Kompania Weglowa with an
additional PLN200-PLN300 million each from the companies, Reuters
relates.  It said this was the total amount KW needs to survive,
Reuters discloses.

Kompania Weglowa is a Poland-based coal miner.


CTC MEDIA: S&P Affirms, Then Withdraws 'BB-/B' CCRs
Standard & Poor's Ratings Services affirmed its 'BB-/B' long- and
short-term corporate credit ratings and 'ruAA-' Russia national
scale rating on U.S.-registered Russian media company CTC Media
Inc. (CTC Media).

S&P subsequently withdrew the ratings at CTC Media's request.

The outlook was stable at the time of the withdrawal.

The affirmation reflected S&P's assessment of CTC Media's business
risk profile as "weak" and its financial risk profile as "modest,"
resulting in a 'bb+' anchor at the time of withdrawal.

Based on S&P's financial policy and comparable ratings modifiers,
it applied a two-notch downward adjustment to the anchor,
resulting in the 'BB-' long-term rating on CTC Media.

S&P's view of the financial policy modifier as "negative"
reflected S&P's view of high event risk for media companies in

Additionally, S&P's negative comparable ratings analysis modifier
reflected the uncertainties surrounding the reorganization steps
CTC Media has to take in order to comply with the amendments to
the Russian law "On Mass Media," adopted in late 2014, imposing
further restrictions on foreign ownership of mass media (including
television broadcasters) in Russia.

MEGAFON OAO: Fitch Affirms 'BB+' IDR, Outlook Stable
Fitch Ratings has affirmed Russia-based telecom company OAO
MegaFon's Long-term Issuer Default Rating at 'BB+' with a Stable

OAO MegaFon's business and financial profile corresponds to the
mid-'BBB' rating level, in view of the company's established
market positions, strong free cash flow (FCF) generation and low
leverage.  This rating is then notched down twice for corporate
governance issues - both country-wide and at MegaFon level.


Strong Market Positions

MegaFon is the second largest mobile operator in Russia by
subscriber and revenue.  The company has gradually increased its
market share over the last five years.  Fitch believes that
MegaFon's market positions are sustainable in the long run and the
company will likely focus more on improving the monetization of
its subscriber base rather than on further subscriber acquisition.
Historically, MegaFon has invested more than its peers, resulting
in strong territorial coverage and quality network.  Prior years'
capex and the consequent high quality of its network should
continue to help the company maintain its strong market position.

Growth to Slow Down

Fitch estimates that MegaFon's revenue for 2015 will be largely
flat, in line with the general market trend.  Russian mobile
market is mature with a penetration of 167% at end-1Q15 and
further meaningful increase in the number of subscribers is
unlikely. Growth in data consumption will likely remain a key
driver of average revenue per user (ARPU) although it might be
mitigated by intense competition and a weak economy.

Rational Competition

The Russian mobile market is competitive among the four national
facilities-based mobile operators, driven primarily by marketing
efforts and the quality of services rather than by prices.  As a
result, operators' ARPUs were stable or growing for the last five

The consolidation of Tele2 Russia's and Rostelecom's mobile assets
(T2 RTK Holding) has only had a modest impact on the market so
far.  Competition is likely to intensify when the joint venture T2
RTK Holding rolls out its operations in Moscow in 2H15.  However,
the entry of the fourth operator to the Moscow market may be
challenged by its low brand awareness, a competitive pricing
environment and the high quality of existing networks.

Russia's Largest LTE Portfolio

MegaFon controls more spectrum than any other operator in Russia,
which guarantees it a high data capacity for years to come.  The
company has the largest share in mobile data revenues, estimated
at 37.5% in 2014.  However, any strategic advantages of having
more spectrum over peers may only be realised in the long-run as
currently its mobile ARPU is close to main peers'.  The currently
available frequencies intended for LTE remain under-utilized in
Russia, due to low LTE device proliferation.

Strong FCF Generation

MegaFon is likely to retain its ability to generate strong pre-
dividend FCF with low double-digits margins.  Increased inflation
will put modest pressure on EBITDA but the margin will likely
remain strong at above 40%, supported by cost efficiency measures.

The depreciation of the rouble weighs on Megafon's forex-
denominated capex, although past heavy investments in the network
mean the company can be flexible with future capex.  In Fitch's
view, Megafon's organic development and the current dividend
policy of paying the higher of 50% of net income and 70% of cash
flow may be financed from strong internally generated cash flow.

Moderate Leverage Sustainable

Funds from operations (FFO) adjusted net leverage was 1.9x at
FYE14, which we expect to rise to 2.1-2.2x over the next four
years, leaving comfortable headroom below the downgrade trigger of
3.0x.  Fitch's forecast leverage corresponds to a net debt/EBITDA
of 1.2x-1.3x, within Megafon's target of 1.2x-1.5x.  The expected
rise in FFO adjusted net leverage in 2015 is driven mostly by
inflation pressures on EBITDA and increased interest expenses.

Shareholding a Risk

Fitch views corporate governance at Megafon as average.  This is
reflected in Fitch's application of the standard two-notch
discount for corporate governance weaknesses in Russia and at the
issuer level, including major shareholder-related risk.  While
MegaFon has put in place appropriate board practices and internal
controls key risks relate mainly to the potentially negative
influence of MegaFon's majority shareholder, USM Holdings.  The
latter company is a non-transparent private holding company
controlled by Alisher Usmanov.


   -- Largely stable revenue over the next four years
   -- Capital expenditures at 20% of revenue in 2016-2018
   -- Stable EBITDA margin above 40%
   -- Gradually rising interest payments as historically low
      interest debt is refinanced with more expensive debt
   -- Dividends at RUB40bn in 2015 and declining in 2016-2018, in
      line with current dividend policy
   -- No M&A


Negative: Future developments that may individually or
collectively lead to negative rating action include:

   -- A sustained increase in FFO-adjusted net leverage to above
      3x, which, combined with liquidity and refinancing risks,
      may lead to a downgrade.
   -- Competitive weaknesses and market share erosion, leading to
      significant deterioration in pre-dividend FCF generation.

Positive: Future developments that may individually or
collectively lead to positive rating action include:

   -- Stronger strategic positioning in the Russian market while
      maintaining robust financial performance and cash flow
      generation.  This may be demonstrated by a pronounced
      mobile market leadership in spite of a fourth mobile
      operator entry and/or by a wider package offer of telecom
      services to most of its customer base, including wire-line
      broadband services.  However, Fitch believes both are
      remote prospects over the medium-term;
   -- A stronger ring-fence around MegaFon, protecting it from
      potential negative shareholder influence.


The company's RUB84 billion of cash and equivalents at end-1Q15,
combined with undrawn credit facilities (RUB27 billion),
comfortably cover its 2015-2016 debt repayments.  The company's
exposure to foreign currency is low with 75% of debt denominated
in RUB (including through FX hedges) at end-1Q15.  Forex risks are
partially offset by the currency structure of its cash and
deposits (more than 60% of cash, cash equivalents and short-term
investments is in hard currencies).  MegaFon's debt maturity
profile is even with no annual repayments exceeding 25% of total
debt at FYE14.


   -- Long-term foreign currency IDR: affirmed at 'BB+', Outlook

   -- Long-term local currency IDR: affirmed at 'BB+', Outlook

   -- Short-term foreign currency IDR: affirmed at 'B'

   -- National Long-term Rating: affirmed at 'AA(rus)', Outlook

   -- Senior unsecured rating: affirmed at 'BB+'/'AA(rus)

Bonds issued by MegaFon Finans LLC and guaranteed by MegaFon:
affirmed at 'BB+'/ 'AA(rus)'


AERO: AMC Emerges as Best Bidder for Sempeter Plant
STA reports German company AMC has emerged the best out of five
bidders for the plant of bankrupt adhesives maker Aero in Sempeter
near the city of Celje.

Receiver Alenka Gril told the STA on July 30 that a lease contract
was being finalized.

Aero is based in Slovenia.


BBVA CONSUMO 7: Moody's Assigns B1 Rating to EUR210.3MM Notes
Moody's Investors Service has assigned these definitive ratings to
notes issued by BBVA Consumo 7, FT:

  EUR1,239.7 million Series A Fixed Rate Asset Backed Notes due
   Sept. 2028, Definitive Rating Assigned Aa3(sf)

  EUR210.3 million Series B Fixed Rate Asset Backed Notes due
   Sept. 2028, Definitive Rating Assigned B1(sf)


The transaction is a revolving cash securitisation of consumer
loans extended to obligors in Spain by Banco Bilbao Vizcaya
Argentaria, S.A. (BBVA) (Baa1(cr)/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 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 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.


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%.


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


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.


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.


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.


VOLVO AB: Moody's Affirms 'Ba1' Rating on Jr. Sub. Hybrid Bond
Moody's Investors Service has changed to stable from negative the
outlook on the Baa2 long-term issuer rating assigned to AB Volvo.
Concurrently, Moody's has affirmed this rating as well as the
Prime-2 short-term issuer rating of Volvo, the Baa2 long term
senior unsecured debt ratings and P-2 short-term ratings of its
rated guaranteed subsidiaries and the Ba1 long-term rating
assigned to the junior subordinated hybrid securities issued by
Volvo Treasury AB and guaranteed by Volvo.

"Our decision to stabilize the outlook on Volvo's ratings reflects
the recovery in the European truck market as well as the company's
continued efforts to strengthen its cost base and competitiveness.
These factors, together with very positive foreign currency
movements, have boosted Volvo's profitability and enhanced its
financial ratios for the first half of 2015," says Yasmina
Serghini-Douvin, a Moody's Vice President -- Senior Credit Officer
and lead analyst for Volvo.


The change of outlook to stable from negative reflects the
improvements in Volvo's operational performance during H1 2015,
supported by very positive currency effects and a recovery in the
European truck market.

In Europe, where the company's operating leverage is high, Volvo's
deliveries and order intake in the first half of 2015 grew by 19%
and 17%, respectively (compared to +1% and -17% in H1-2014).  Both
Volvo and Renault Trucks brands reported improving volumes and the
company's expectations for the region of 250,000 heavy-duty trucks
in 2015 remain unchanged.

Outside of Europe, Volvo reported disparate trends and results
with North America continuing to display good market fundamentals
with a better aftermarket business at Volvo, even though order
intake for the Mack brand was very weak in the second quarter of
2015 (-50% year-on-year).  The company attributed this slackening
of orders to cancellations of large dealer orders placed in the
final quarter of 2014.

While demand in Brazil remains weak and a slowing Chinese economy
weighs on truck demand, these issues were more than offset by
favorable currency movements, ongoing efficiency measures and a
positive product mix, as Volvo focuses on more profitable
equipment and machinery.  As a result of these measures, Volvo's
construction equipment division (CE) posted a large increase in
profitability in H1 2015 despite sharp volume declines in Russia,
China and Brazil.

Overall, Volvo's Moody's-adjusted EBIT margin increased to 3.2% in
the 12 months to 30 June 2015 up from 2.2% in 2014 and 2.7% in
2013.  The company has achieved these improvements despite
incurring restructuring charges associated with its ongoing
efficiency program, which are not excluded from Moody's ratios

In addition, higher profits combined with a larger-than-expected
working capital inflow contributed to a strong Moody's-adjusted
free cash flow generation of SEK12.2 billion in the 12 months to
30 June 2015.  Volvo's Moody's-adjusted (gross) debt/EBITDA ratio
declined to 3.2x as of 30 June 2015 compared to 4.3x in 2014 and
4.2x in 2013 and its retained cash flow/net debt was 36.9% up from
26.4% in 2014.

In Moody's view, the company's financial position was helped by
the issuance in the final quarter of 2014 of EUR1.5 billion
(approximately SEK14.0 billion) worth of subordinated hybrid
securities, which were attributed a 50% equity credit by the
rating agency.  In the next few quarters, Moody's anticipates that
Volvo will likely deliver a further improvement in its credit
metrics to levels which would position the company more
comfortably within the Baa2 rating category.


The stable outlook reflects Moody's expectations that improving
trends in the European truck industry and continued efficiency
measures will support a further increase in Volvo's profits.
Together with the company's broadly balanced financial policies,
this should help Volvo achieve and maintain better credit metrics
in line with the rating agency's guidelines for a Baa2 rating
(i.e., a Moody's-adjusted EBIT margin trending towards 5% as well
as a Moody's-adjusted debt/EBITDA reducing towards 3.0x).


Moody's could consider upgrading Volvo's ratings if (1) the
company were able to achieve and maintain a strong operating
performance through the cycle, as indicated by a Moody's-adjusted
EBIT-margin above 8% on a sustainable basis; (2) it were to
display at least stable market share performance in the key
regions of its business segments; and (3) there were evidence that
Volvo could maintain reasonable financial metrics throughout the
cycle, such as (i) a Moody's-adjusted debt/EBITDA ratio trending
towards 2.5x and falling below 2.0x in the peak of a cycle and
(ii) a retained cash flow/net debt ratio remaining above 30%
through the cycle.

Moreover, Moody's expects that Volvo would be able to improve then
maintain a solid liquidity profile with cash needs being covered
with cash sources for more than the next 12 months under the
rating agency's scenario, whereby the company has no access to the
debt capital markets.

Volvo's Baa2 ratings could come under downward pressure absent a
continuous recovery in key financial metrics over the next few
quarters, as evidenced by an improvement in its EBIT margin
towards 5% and a Moody's-adjusted debt/EBITDA reducing towards
3.0x.  In addition, failure to generate a positive free cash flow
could lead to a downgrade.  Weakening asset performance at Volvo
Financial Services and increasing credit losses could also put
pressure on the rating.


The principal methodology used in these ratings was Global
Manufacturing Companies published in July 2014.

List of Affected Ratings


Issuer: AB Volvo
  LT Issuer Rating, Affirmed Baa2
  ST Issuer Rating, Affirmed P-2

Issuer: Volvo Treasury AB
  BACKED Senior Unsecured Regular Bond/Debenture, Affirmed Baa2
  BACKED Senior Unsecured Medium-Term Note Program, Affirmed
  BACKED Junior Subordinated Regular Bond/Debenture, Affirmed Ba1
  BACKED Commercial Paper, Affirmed P-2
  BACKED Other Short Term, Affirmed (P)P-2

Issuer: Volvo Treasury Australia Pty Ltd
  BACKED Senior Unsecured Medium-Term Note Program, Affirmed
  BACKED Commercial Paper, Affirmed P-2
  BACKED Other Short Term, Affirmed (P)P-2

Issuer: Volvo Treasury North America LP
  BACKED Commercial Paper, Affirmed P-2

Outlook Actions:

Issuer: AB Volvo
  Outlook, Changed To Stable From Negative

Issuer: Volvo Treasury AB
  Outlook, Changed To Stable From Negative

Issuer: Volvo Treasury Australia Pty Ltd
  Outlook, Changed To Stable From Negative

Issuer: Volvo Treasury North America LP
  Outlook, Changed To Stable From Negative

Headquartered in Gothenburg, Sweden, AB Volvo is a global
manufacturer of trucks, buses and construction equipment, and
drive systems for marine and industrial applications.  Moreover,
Volvo's financial services operation provides complete solutions
for financing and service.  In 2014, Volvo generated revenues of
SEK283 billion and an operating income of SEK5.8 billion.


PETROTURK: Files for Bankruptcy Protection in Istanbul Court
According to Bloomberg News' Isobel Finkel, Hurriyet newspaper,
citing legal documents, reports that Petroturk has filed to court
in Istanbul for bankruptcy protection.

The company said it can repay its debts in 34 months if the
bankruptcy is postponed, Bloomberg relates.  It said it will
undertake saving measures, Bloomberg notes.

Petroturk is based in the south-eastern port city of Mersin.  The
company owns about 230 gas stations in Turkey.


CAPITAL PJSC: National Bank of Ukraine Declares Bank as Insolvent
Public Joint-Stock Company Joint-Stock Commercial Bank Capital
(JSCB CAPITAL PJSC) was declared insolvent by the National Bank of
Ukraine on July 20, 2015.

In January 2015, JSCB CAPITAL PJSC was declared a problem bank due
to the poor quality of its assets and given the fact that the bank
faced a liquidity risk stemming from a reduction in the high-
quality assets.

JSCB CAPITAL PJSC was obliged within a 180-day period (until
July 20, 2015) to bring its activities into conformity with the
applicable Ukrainian laws, including the NBU regulations.

However, the efforts by the bank's qualifying shareholder to put
the bank back on track have failed. The reason for this was that
the bulk of assets held by the bank and its operational
capabilities were left in the temporarily occupied territory of
Ukraine, which made it impossible either to secure the cash flow
needed to meet the needs of depositors and creditors, or ensure
the appropriate level of risk management.

In view of the above, and in order to protect the interests of
depositors and other creditors, by virtue of Articles 7, 15, and
55 of the Law of Ukraine on the National Bank of Ukraine, and
Articles 67, 73, 75, and 76 of the Law of Ukraine On Banks and
Banking, the Board of the National Bank of Ukraine adopted a
decision to declare JSCB CAPITAL PJSC insolvent.

According to the applicable Ukrainian laws, the bank that has been
declared insolvent shall be placed under jurisdiction of the
Deposit Guarantee Fund, which shall appoint the provisional
administration and authorized officials to this financial
institution.   The Fund guarantees the reimbursement of deposits
to all depositors who will receive compensation for the amount of
their deposit, including the interest accrued thereon on the date
when the National Bank of Ukraine adopts a decision to declare the
bank insolvent and the Fund initiates a winding-up procedure
against this bank, but up to the compensation limit established on
the date of the respective decision, regardless of the number of
deposits held in one bank.

UKRAINE: IMF Board Likely to Approve Bailout Tranche
Ian Talley at The Wall Street Journal reports that International
Monetary Fund Managing Director Christine Lagarde on July 29
signaled the emergency lender will likely approve a bailout
payment for Ukraine despite the failure of Kiev to secure a debt
restructuring deal with creditors.

According to the Journal, IMF staff have already given preliminary
approval of the tranche as Kiev moves ahead with promised budget
cuts and economic overhauls, but the executive board still needs
to give the final green light at a meeting scheduled today, July

Christine Lagarde, in an online news conference, said she hoped
the board "will be supportive" of Ukraine's efforts, the Journal
relates.  It is unlikely she would make such an assertion without
an indication from board members they plan to approve the bailout
tranche, the Journal notes.

The IMF chief also said the fund was prepared to continue
financing Kiev even if a debt relief deal hasn't been reached,
giving authorities leverage in their negotiations, the Journal

U N I T E D   K I N G D O M

COGNITA BONDCO: Moody's Assigns 'B2' Corp. Family Rating
Moody's Investors Service assigned a corporate family rating of B2
and B2-PD probability of default rating to Cognita Bondco Parent
Limited.  Concurrently, Moody's assigned a (P)B2 rating to the
proposed GBP280 million senior secured notes due in 2021 to be
issued by Cognita Financing plc.  In addition, the capitalization
structure will consist of a new GBP60 million super senior
revolving credit facility (RCF), due six months prior to the
maturity date of the notes, undrawn at closing.  The proceeds of
the transaction will be used to partially repay Cognita's existing
debt facilities.  Cash overfunding is expected to result in a
closing cash balance of approximately GBP80 million pro forma for
the bond issuance.  The outlook on all ratings is stable.

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


Cognita's B2 CFR reflects the company's (1) position as a leading
player with a geographically diversified portfolio of 66 schools
on three continents; (2) established track-record of achieving
revenue growth and operational leverage through organic and
acquisitive growth and tuition fee increases above cost inflation;
(3) protection by barriers to entry through regulation, brand
reputation and purpose built real-estate portfolio; (4) strong
revenue visibility from committed student enrolments and (5)
supportive underlying growth drivers for the private-pay education

The CFR is constrained by the company's (1) high Moody's adjusted
opening leverage of 7.6x in the year ending August 2015; (2) large
planned capital expenditure, mainly financed by the cash on
balance sheet but also limiting free cash flow generation in the
next two years.; (3) reliance on its academic reputation and brand
quality in a highly regulated environment and (4) exposure to
changes in the political and legal environment in emerging

Moody's considers Cognita's near-term liquidity position, pro
forma for the transaction, to be adequate, based on an opening
cash balance of about GBP80 million with additional liquidity for
capital expenditure and acquisitions stemming from a GBP60 million
super senior RCF, which is expected to be undrawn at closing.
Moody's expects the company to use its cash on balance sheet and
RCF to fund projected capital expenditure which forms an integral
part of its business plan.  At the same time, we expect Cognita to
benefit from structurally negative working capital, as a result of
advance collection of fees.  The super senior RCF benefits from a
springing net total leverage maintenance covenant, tested
quarterly and triggered when the RCF is more than 25% drawn.

The (P)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 (RCF and trade payables).

Both the notes and super senior RCF benefit from first ranking
security interests.  The notes are guaranteed by the company's
subsidiaries, which, for the 12 months ended May 31, 2015,
represented 75% and 65% of the group's total assets and adjusted
EBITDA, respectively.  The company's subsidiaries in Brazil,
Chile, Spain, Vietnam and Thailand will not guarantee the
obligations under the notes and have, pro-forma for the
transaction, approximately GBP40 million in outstanding debt
secured by local assets.  The security collateral includes fixed
and floating charges over substantially all of the issuer and the
guarantors.  The RCF ranks super senior in the enforcement
waterfall and benefits from a guarantor coverage test of not less
than 80% of the group's gross assets and EBITDA (of the group's
guarantor entities).


The stable rating outlook reflects Moody's expectation that
Cognita will continue to drive revenue through planned capacity
increases and fee growth above cost inflation and achieve cost
efficiencies through operational leverage.


Upward pressure on the ratings could develop over time if adjusted
debt-to-EBITDA declines and is sustained below 6.0x and retained
cash flow to debt improves above 10% while maintaining an adequate
liquidity profile.


Downward pressure on the ratings could arise if earnings weaken
such that adjusted debt-to-EBITDA does not fall below 7.0x in the
next 12-18 months, or if free cash flow or the liquidity profile
weakens.  Any debt funded acquisition could also pressure the

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.

Headquartered in the UK, Cognita Schools is an international
independent schools group offering primary and secondary private
education in 66 schools across seven countries in Europe, Asia and
Latin America.  Founded in 2004, the group acquired schools in the
United Kingdom, Spain, Brazil, Chile, Singapore, Thailand and
Vietnam and teaches over 31 thousand K-12 private-pay students
aged between one and eighteen years.  Cognita is owned by Bregal
Capital (51.1%) and KKR Private Equity (48.9%).  KKR made its
investment in the company in June 2013.  Both firms have invested
equity in the business to support Cognita's growth through
capacity extensions and acquisitions.  In the LTM May 2015 period,
the company reported GBP290 million revenues and GBP56 million Pro
Forma Adjusted EBITDA.

HIKMA PHARMACEUTICALS: Moody's Affirms Ba1 CFR, Outlook Stable
Moody's Investors Service affirmed the Probability of Default
Rating and Corporate Family Rating of Hikma Pharmaceuticals PLC at
Ba1-PD and Ba1 respectively. Concurrently Moody's has also
affirmed the Ba1 rating on the USD500 million senior unsecured
guaranteed notes issued by Hikma Pharmaceuticals PLC. The outlook
on all ratings is stable.


The affirmation of the Corporate Family rating follows Moody's
assessment of the announced acquisition of Roxane Laboratories
Inc. and Boehringer Ingelheim Roxane Inc. from Boehringer
Ingelheim for a total consideration of USD2.65 billion, which will
be funded with USD1.18 billion in cash and with USD1.47 billion in
new Hikma shares to be issued to Boehringer Ingelheim.

The affirmation of the rating is supported by the strong strategic
rationale of the proposed transaction and the large portion of
equity used to finance the deal in order to maintain a sound
balance sheet structure, consistent with the company's financial
policy says Stanislas Duquesnoy, a Vice President -- Senior Credit
Officer at Moody's Investors Service.

By acquiring Roxane Laboratories, Hikma will more than triple the
size of its non-injectable generics business in the US with the
combined group becoming the sixth largest generic company in the
US. Scale is a key success factor for generic companies especially
at a time when generic producers, insurance companies and pharmacy
benefit managers are heavily consolidating and price pressures are
mounting hence the need for Hikma to enhance its scale in the US
market to remain competitive long term.

In addition, Hikma will get access to a very strong pipeline of
upcoming products with 89 projects currently being worked on with
an addressable market of USD41 billion and 57 paragraph IV (24
paragraph IV have already been filed and 13 of them are potential
first to file opportunities). The new product launches should
translate into good top line growth and a strong margin accretion
in the next 2-3 years supporting the group's deleveraging path. It
is also noted that Roxane Laboratories has invested heavily in R&D
in the last few years to build its pipeline (USD100 million per
annum between 2012 and 2014), which should also support margin
accretion as new products are being launched.

The proposed transaction will most likely also bring some
synergies from the combination of production, sales force and
other functions although the company has not yet disclosed precise
indications on the amount of synergies expected from the
transaction. We also believe that the primary strategic focus is
not on synergies but on the acquisition of the pipeline and of the
production facility.

Despite the material portion of equity used to finance the
acquisition the closing of the transaction will initially lead to
a leveraging up of the balance sheet of Hikma to a level that will
position Hikma weakly in the current rating category. However,
Moody's expects Hikma to focus on deleveraging over the next
2 to 3 years to bring back its adjusted leverage ratio to a more
commensurate level for the current Ba1 rating.

The stable outlook assigned to the ratings reflects the moderate
integration risks of the acquisition and Moody's expectation that
Hikma will continue to maintain a conservative financial policy in
order to restore credit metrics more in line with our expectations
for the current rating category, namely Debt/EBITDA around or
below 2.0x. The stable outlook also assumes that Hikma will manage
its maturity profile pro-actively with a view to refinance
upcoming debt maturities at least 12 months prior to the
contractual maturity.


Hikma's liquidity will be adequate at closing of the transaction.
The group had USD280 million of cash on balance sheet at fiscal
year-end 2014 and USD650 million availability under a revolving
credit facility. Since year-end 2014, Hikma has raised USD500
million through a senior unsecured bond and repaid a USD224
million bridge facility used to fund the Bedford acquisition.
Apart from USD1.47 billion of fresh equity, Hikma will fund the
acquisition from cash on balance sheet and additional bank debt
financing. Pro-forma of the closing Hikma should retain sufficient
availability under its revolving credit facility to fund its day-
to-day operations and for any contingent cash calls. However
Moody's notes that Hikma will have a relatively concentrated
maturity profile with most of the group's bank debt maturing
within 18 to 24 months from the expected closing of the
transaction. Moody's will closely monitor Hikma's refinancing


Positive rating pressure would build if (1) adjusted gross
debt/EBITDA would stay sustainably below 2.0x and (2) EBITDA
margins would be sustained in the high twenties.

Negative rating pressure would be exerted on the rating if (1)
adjusted gross debt/EBITDA would stay sustainably above 3.0x, (2)
the group's free cash flow generation would turn sustainably
negative leading to a deterioration of Hikma's liquidity profile,
and (3) Hikma would not address upcoming maturities well ahead of
time, in particular the bridge financing at least 12 months ahead
of the maturity date.

INT'L VILLAS: Working on Rescue Package Having Ceased Trading
TTG DIGITAL reports that International Villas, an Essex-based
villa rental company, said it is working on a rescue package
having ceased trading.

The report notes that a message on its website originally read:
"It is with great sadness due to unforeseen circumstances, the
company has now ceased to trade and the directors have instructed
Sharma & Co to assist with a view to placing the company into
creditors' voluntary liquidation."

However, it has now been updated and reads: "International Villas
has ceased trading and is working on a rescue package.  A further
update will be provided before close of business on Thursday, 30
July," the report relates.

While the liquidators work on a rescue package for the company,
concerns are emerging that British holidaymakers are being
affected by the problems, the report notes.

The report discloses that Roberto San Esteban, president of Ibiza-
based holiday lets association Avat, told the newspaper: "The
problems started to occur at the weekend and we're predicting many
more to come.

NORDIC RECYCLING: Enters Liquidation
Rob Preston at mrw reports that Nordic Recycling has entered
liquidation, stopping operations at its 100,000-tonne a year Port
of Tilbury MRF, its parent company Suez has confirmed.

Suez's UK subsidiary Sita UK bought Nordic last year with the
intention of expanding its operations in the south of England,
according to mrw.

But a spokesperson for Suez said directors of Nordic began putting
the company into an insolvency process on 24 July due to poor
trading conditions, the report notes.

The report discloses that Thurrock Council has expressed its
disappointment at the site's closure, which curtails a seven-year
contract due to end in April 2017.  It means the council will have
to pay GBP40 a tonne more to process its mixed dry recycling, the
report says.

The council had been paying GBP14.52 a tonne at the plant but will
now be charged a GBP55 rate at Bywaters' MRF in Bow for the next
18 months, the report notes.

The report relays that a uez spokesperson said: "On Friday the
directors of Nordic Recycling Limited, a wholly owned subsidiary
of Sita, reluctantly took steps to put the company into an
insolvency process as a result of poor trading conditions.

"They are now working with an insolvency practitioner to bring
about an orderly shutdown of the company, and will comment further
in due course," the spokesperson added.

Sita had offered Thurrock the option of using its Barking site at
GBP61 a tonne, according to the council, the report discloses.

The council said the company had told it in June that it was
consulting with its workforce on the future operation of the
Tilbury site, the report notes.

The report relays that the company also told the local authority
it had directed all other waste away from the site because
Thurrock was contaminating all material, which the council said it
made steps to rectify.

The report notes that Council portfolio holder for environment
Gerard Rice said: "We believe Sita was looking for excuses to
close its Tilbury site but has been gradually lowering its offer
to use Barking.

"We are looking at what we can do legally to recoup the difference
between the rate we were paying and the GBP55 we are paying from,"
the report quoted Mr. Rice as saying.

"Part of the Bywaters deal is that it accepts the same commingled
one-bin recycling as Tilbury, so our residents do not have to
learn a new system," Mr. Rice added.

The report notes that Bywaters associate director Craig Gregory
said: "We are very excited to be working in partnership with
Thurrock Council in driving down contaminated materials and
increasing their recycling volumes, ensuring they achieve a long-
term sustainable solution for their residents.

"While the industry faces many challenges, it is refreshing to be
working with a like-minded partner," Mr. Gregory said, the report

The council said it has had to cancel its pilot kerbside textile
recycling scheme because the new facility cannot cope with this at
short notice, the report notes.

The report adds that Mr. Suez said its other operations at Port of
Tilbury, including a refuse-derived fuel plant, remain unaffected.

RSA INSURANCE: Zurich Mulls Potential Takeover Bid
Martin Flanagan at The Scotsman reports that a shake-up looms at
the top of Britain's insurance industry after Swiss giant Zurich
announced to the London Stock Exchange on July 28 that it was
weighing up an offer for troubled FTSE 100 major, RSA

After a fresh spike in market speculation the previous day that a
deal might be on the cards, Zurich confirmed it was "evaluating a
potential offer" for its smaller rival, The Scotsman relates.

Bankers estimate it could be worth GBP5 billion to GBP6 billion,
although they have not ruled out other potential buyers being
flushed out by developments, The Scotsman notes.

According to The Scotsman, analysts also said the would-be
suitor's timing was opportunistic, the target group having endured
a torrid 18 months since a GBP200 million hole in the accounts of
its Irish arm was discovered in late 2013.

RSA issued a terse statement in response on July 28, noting
Zurich's announcement, The Scotsman relays.

"RSA has not held talks with or received a proposal from Zurich
and shareholders are advised to take no action," The Scotsman
quotes RSA as saying.

"RSA looks forward to updating the market on trading performance
and strategic progress at the interim results announcement on
August 6, 2015."

Under City Takeover Panel rules, Zurich now has until Aug. 25 to
make a firm offer or walk away, The Scotsman discloses.

RSA Insurance Group plc (trading as RSA, formerly Royal and Sun
Alliance) is a British multinational general insurance company
headquartered in London, United Kingdom. RSA has major operations
in the UK & Ireland, Scandinavia, Canada,and Latin America and
provides insurance products and services in more than 140
countries through a network of local partners.

THORNABY CARS: Directors Gets Prison Sentence, Disqualified
Two company directors, Mr Arfan Ali Khan and Mr Gerard Burns both
from Middlesbrough have been sentenced following the insolvency of
a taxi hire company -- Thornaby Cars Limited trading as Royal Cars
-- that they ran.

The convictions follow an initial investigation by the Insolvency
Service and a full criminal investigation and Prosecution by the
Department for Business, Innovation and Skills (BIS).

Mr Arfan Ali Khan, aged 34, has been sentenced to 16 months'
imprisonment and disqualified from being a company director for a
period of 10 years after pleading guilty to a number of offences.

The offences for which Mr Khan was sentenced at Newcastle-upon-
Tyne Crown Court on Monday 20 July 2015, were:

   * one of fraudulent removal of GBP150,000.00 worth of company
     property in anticipation of the winding up of the company

   * failing to keep adequate accounting records

   * re-using a prohibited company name

Mr Gerard Burns, aged 69 has been sentenced to 10 months'
imprisonment (to be suspended for 2 years) and disqualified from
acting as a company director for a period of 5 years.

The offences for which Mr Burns was sentenced at Newcastle-upon-
Tyne Crown Court on Monday 20 July 2015 were:

   * one of fraudulent removal of GBP150,000.00 worth of company
     property in anticipation of winding up of the company

   * failing to keep adequate accounting records

The investigation found both Mr Khan and Mr Burns unlawfully
transferred  GBP150,000.00 from Thornaby Cars Limited trading as
Royal Cars before it was wound up to another company which they
controlled when they knew that such an amount was owed to HMRC for
unpaid VAT. In doing so, they prevented HMRC from being paid the
debt that it was owed.

Both Mr Khan and Mr Burns failed to keep adequate accounting
records to show the financial position of Thornaby Cars Limited.

Mr Khan further continued to use the business name Royal Cars
previously used by Thornaby Cars, when its use had been prohibited
for a period of 5 years from 28 July 2010.

In addition to these actions, confiscation proceedings are

Deputy Chief Investigative Officer, Mr Simon Button from the
Department for Business, Innovation and Skills said:

"The Insolvency Service and The Department for Business,
Innovation and Skills will take firm action when we find that
Company Directors have abused the trust that the public expect
from them when they hold such a responsible position.

"Both Mr Khan and Mr Burns were clearly aware that the money
belonged to the company and its creditors, and was not theirs to
do with as they wished."

Thornaby Cars Limited, trading as Royalty Cars, was incorporated
on Aug. 24, 2004. The company was wound-up on July 28, 2010,
following a petition by HMRC.

* UK: Rising Interest Rates to Hurt "Zombie Businesses", R3 Says
Commenting on the quarterly insolvency statistics (for April-June
2015) published by the Insolvency Service on July 29, Phillip
Sykes, president of R3, the insolvency trade body, says:
Personal insolvencies down

"The return of rising wages (in real terms) has contributed to a
sharp drop in personal insolvency numbers in the past year.
Individual Voluntary Arrangements, which are often a good
indicator of people struggling with the cost of living, have
fallen dramatically: a year ago they were at a record high; today
they are back at levels last seen in 2006.

"It has taken a long time, but with wages outstripping inflation
again, people are finding it easier to repay their debts without
resorting to insolvency procedures.

"It might also be the case that the wave of insolvencies caused by
the pre-recession credit boom has come to an end.

"Although insolvencies fell steadily after the recession, the rate
of decline markedly slowed in 2013-14.  Since then, the rate of
decline has accelerated rapidly.

"With steady economic growth continuing and unemployment on a
downward path, bankruptcies, which are affected by factors such as
redundancy or company failures, remain at rock bottom.

"Remember though that the official insolvency numbers offer an
incomplete look at insolvency in England & Wales: they do not
include the tens of thousands of people, possibly more, in
informal debt management plans.  Such plans are now under the
oversight of the Financial Conduct Authority, and it is very
important that the FCA starts to keep track of debt management
plan numbers.

"Insolvency numbers may go up later in the year and early next.
Debt Relief Orders will become easier to enter from October, while
an expected rise in interest rates could put pressure on household
finances.  Also from October, it will be harder for creditors to
make a debtor bankrupt: this could mean more creditor petitions
for bankruptcies in the next quarter as creditors hurry to beat
the rule change."

                    Corporate insolvencies down

"Corporate insolvencies continue their long, slow decline from
their peak in the recession.  Record low interest rates and
creditor forbearance have given businesses an easier time than
might historically have expected during the recovery after a

"However, these factors will not last forever.  Rising interest
rates are looking more likely and could prove to be a big test for
those businesses already on the edge.  And there are still plenty
of businesses which are just about able to service their debts but
have no capacity to repay the capital outstanding on their loans.

"So a rise in interest rates is likely to cause real difficulties
for such 'zombie businesses' and even bring on insolvency. The
presence of such 'zombie businesses' -- surviving but permanently
struggling and therefore both unproductive and unable to attract
new investment -- could explain part of the UK's post-recession
productivity puzzle."


* BOOK REVIEW: Lost Prophets -- An Insider's History
Author: Alfred L. Malabre, Jr.
Publisher: Beard Books
Softcover: 256 pages
List Price: $34.95
Review by Henry Berry

Order your personal copy today at

Alfred Malabre's personal perspective on the U.S. economy over
The past four decades is firmly grounded in his experience and
knowledge. Economics Editor of The Wall Street Journal from 1969
to 1993 and author of its weekly "Outlook" column, Malabre was
in a singular position to follow the U.S. economy in recent
decades, have access to the major academic and political figures
responsible for economic affairs, and get behind the crucial
economic stories of the day. He brings to this critical overview
of the economy both a lively, often provocative, commentary on the
picture of the turns of the economy. To this he adds sharp
analysis and cogent explanation.

In general, Malabre does not put much stock in economists. "In
sum, the profession's record in the half century since Keynes
and White sat down at Bretton Woods [after World War II] provokes
dismay." Following this sour note, he refers to the belief of a
noted fellow economist that the Nobel Prize in this field should
be discontinued. In doing so, he also points out that the Nobel
for economics was not one originally endowed by Alfred Nobel, but
was one added at a later date funded by the central bank of Sweden
apparently in an effort to give the profession of economists the
prestige and notice of medicine, science, literature and other
Nobel categories.

Malabre's view of economists is widespread, although rarely
expressed in economic circles. It derives from the plain fact
that modern economists, even hugely influential ones such as John
Meynard Keynes, are wrong as many times as they are right. Their
economic theories have proved incomplete or shortsighted, if not
basically wrong-headed. For example, Malabre thinks of the
leading economist Milton Friedman and his "monetarist
colleagues" as "super salespeople, successfully merchandising an
economic medicine that promised far more than it could deliver"
from about the 1960s through the Reagan years of the 1980s. But
the author not only cites how the economy has again and again
disproved the theories and exposed the irrelevance of wrong-
headedness of the policy recommendations of the most influential
economists of the day. Malabre also lays out abundant economic
data and describes contemporary marketplace and social activities
to show how the economy performs almost independently of the best
analyses and ideas of economists.

Malabre does not engage in his critiques of noted economists and
prevailing economic ideas of recent decades as an end in itself.
What emerges in all of his consistent, clear-eyed, unideological
analysis and commentary is his own broad, seasoned view of
economics-namely, the predominance of the business cycle. He
compares this with human nature, which is after all the substance
of economics often overlooked by professional and academic
economists with their focus on monetary policy, exchange rates,
inflation, and such. "The business cycle, like human nature, is
here to stay" is the lesson Malabre aims to impart to readers
interested in understanding the fundamental, abiding nature of
economics. In Lost Prophets, in language that is accessible and
jargon-free, this author, who has observed, written about, and
explained economics from all angles for several decades,
persuasively makes this point.

In addition to holding a top position at The Wall Street Journal,
Malabre is also the author of the books, Understanding the New
Economy and Beyond Our Means, which received the George S. Eccles
Prize from the Columbia Business School as the best economics book
of 1987.


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.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to

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


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

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

Copyright 2014.  All rights reserved.  ISSN 1529-2754.

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

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

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

                 * * * End of Transmission * * *