TCREUR_Public/150925.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, September 25, 2015, Vol. 16, No. 190

                            Headlines

E S T O N I A

ALIMANTS OU: Is Insolvent, Cancels Pre-Booked Tours


I T A L Y

MANUTENCOOP FACILITY: S&P Affirms 'B' CCR, Outlook Negative


L U X E M B O U R G

SUNRISE SRL 1: S&P Affirms B+ Rating on Serie 2006 Class C Notes


P O R T U G A L

COMBOIOS DE PORTUGAL: S&P Raises ICR to 'BB+', Outlook Stable


R U S S I A

ANTALBANK LLC: Placed Under Provisional Administration
GAZENERGOBANK OJSC: DIA to Oversee Rehabilitation Measures
INVESTTORGBANK JSCB: DIA to Oversee Rehabilitation Measures
RUSAL BRATSK: Fitch Assigns 'B+' IDR, Outlook Stable
TUSAR JSC: Put Under Provisional Administration, License Revoked

UTAIR: Unlikely to Follow Transaero Fate, Russian Gov't Says
VOCBANK JSC: DIA to Oversee Rehabilitation Measures
ZERNOBANK JSC: Placed Under Provisional Administration


S P A I N

REPSOL INT'L: Fitch Affirms 'BB+' Rating on Hybrid Instruments
SPAIN: Catalonia Independence Vote to Hit Banking System


U K R A I N E

FERREXPO PLC: Fitch Puts 'CCC' IDR on CreditWatch Negative
PRIVATBANK: S&P Lowers Counterparty Credit Ratings to 'SD'


U N I T E D   K I N G D O M

ARROW GLOBAL: S&P Affirms 'BB-' Rating on Notes Due 2021
BRIDGE HOLDCO: Moody's Cuts Probability of Default Rating to Caa1
CITY LINK: Gov't Rejects Key Proposals on Employee Preference
HARLEY CURTAIN: Enters Administration Following Cash Flow Woes


X X X X X X X X

* BOOK REVIEW: The Rise and Fall of the Conglomerate Kings


                            *********


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E S T O N I A
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ALIMANTS OU: Is Insolvent, Cancels Pre-Booked Tours
---------------------------------------------------
Toomas Hobemagi at Baltic Business News reports that Estonian-
based tour operator Alimants OU that operates under itur.ee
website announced on September 17 that it is insolvent.

According to the report, the Company has notified the consumer
protection authority that it is unable to meet its obligations to
customers.

The report relates that Alimants has cancelled all pre-booked
tours and said that 13 customers are at present abroad on a tour
sold by the company.

The company has a security deposit of EUR32,000 held in BTA
Insurance Company SE.  The funds will be used to pay for the
return of passengers currently on tour and for refunding patients
who have made prepayments, says Baltic Business News.



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I T A L Y
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MANUTENCOOP FACILITY: S&P Affirms 'B' CCR, Outlook Negative
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it revised its
outlook on Italy-based facility services provider Manutencoop
Facility Management SpA (MFM) to negative from stable.  At the
same time, S&P affirmed its 'B' long-term corporate credit rating
on MFM.

In addition, S&P affirmed its 'B' issue rating on MFM's
EUR425 million senior secured notes (outstanding nominal value of
EUR300 million).  The recovery rating on the notes is '3',
reflecting S&P's expectation of meaningful (50%-70%) recovery in
the event of a payment default.

The outlook revision reflects S&P's view of MFM's reduced
liquidity flexibility.  Although neutral on the credit metrics, in
S&P's opinion, management's decision to buy back EUR80 million of
bonds using its existing cash balance has reduced the group's
ability to absorb adverse, high-impact events.  Examples of these
include a potential fine levied as a result of the legal
investigations into MFM's contracts; a delay in a collection from
the public sector relating to historical receivables outstanding;
and higher-than-expected working capital swings, exceeding S&P's
current assumption of EUR35 million.

S&P forecasts that the group's cash balance will fall from
EUR66 million as of June 30, 2015 to less than EUR2 million by
Sept. 30, 2015, as S&P expects that the cash will be used to repay
short-term debt of about EUR33 million.  S&P forecasts that the
rest will go toward the business' working capital needs.

S&P understands that management is currently assessing options to
sign additional long-term committed facilities.  However,
management has also publicly stated its intention to undertake
further bond repurchases on the open market, subject to the
availability of alternate long-term economically beneficial
financing options.  Therefore, S&P believes the group's liquidity
could remain under pressure.

S&P anticipates that the group's operating challenges over the
next 12 months will continue due to intense pricing pressure and
reduced contract wins.  S&P anticipates that these could result in
a decline in organic revenue.  The recent announcement that the
Judge of Brindisi has decided to indict the group chairman and
CEO, Claudio Levorato, has no immediate effect on the group's
liquidity but does represent a reputation risk for the business.

S&P's base case assumes:

   -- GDP to modestly increase by 0.5% in 2015 and to increase by
      1.0% in 2016.

   -- S&P's forecast of revenue decline of about 7% in fiscal
      2015, due to competitive pricing pressure and a lower
      number of new contract wins.

   -- Stable EBITDA margins of about 8.8%-9.0% as the impact of
      the pricing pressure is offset by efficiency measures and a
      reduction in nonrecurring costs.

   -- Nonrecurring expenses of about EUR5 million for fiscal
      2015, compared with EUR11 million in fiscal 2014.

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

   -- Reported EBITDA of about EUR80 million-EUR85 million per
      year for fiscal years 2015 and 2016 (including the impact
      of nonrecurring expenses and provision for risk).

   -- Adjusted ratio of debt to EBITDA of about 5.5x-6.0x over
      the same time frame.

   -- Modest free operating cash flow in 2015.

The negative outlook reflects S&P's view that it could lower the
rating on MFM if S&P assess that there is higher likelihood of a
material shortfall in liquidity, and an absence of a credible
management plan to address the situation.

S&P could downgrade MFM if S&P revised down its liquidity score to
"weak," in the event of adverse event risk.

S&P could revise the outlook back to stable if MFM were to attain
sufficient liquidity by maintaining a satisfactory undrawn credit
facility that can provide some cushion against event risk.



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L U X E M B O U R G
===================


SUNRISE SRL 1: S&P Affirms B+ Rating on Serie 2006 Class C Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its credit ratings in
Sunrise S.r.l.'s series 1 2006 and series 2 2007.

The affirmations follow S&P's review of the transaction's
performance since its previous review in June 2014 and the
application of its criteria for rating single-jurisdiction
securitizations above the sovereign foreign currency rating.

Total delinquencies as of the August 2015 payment date have
decreased since S&P's previous review, and the rate of increase in
the default rate has also significantly slowed.  Overall, the
transaction's performance has improved, mostly due to the
originator's repurchasing of receivables from the securitized
portfolio.

Since closing, available excess spread has been sufficient to
cover the principal receipt shortfalls due to loan defaults.  The
securitized pool's cumulative gross defaults since the series 2
2007 notes began amortizing in August 2012 are EUR43.96 million,
equivalent to 4.40% of the end of the revolving period balance.

The transaction has a split waterfall for interest and principal,
but principal funds are available to pay the interest shortfalls.

Interest payments on the series 2 2007's class B and C notes may
be deferred if the cumulative net default rate since amortization
exceeds 7.66% and 4.40%, respectively.  If the respective trigger
level is breached and either (i) the theoretical excess spread
(calculated as interest available funds, adjusted for interest
deferred on loans on payment holidays and net swap receipts, less
the aggregate of certain senior expenses, notes coupons, and
defaulted receivables, expressed as a ratio of the relevant
receivables balance) is less than 0%, or (ii) there are
insufficient interest available funds to make up for periodic
defaults, then interest will be diverted to fully repay the
principal on the senior classes of notes.

As a consequence of the deleveraging, available credit enhancement
has substantially increased for series 1 2006's class C notes and
series 2 2007's class A, B, and C notes since closing.  The
available credit enhancement for the series 2 2007 class A and B
notes has increased to 84.00% and 46.40% from 10.21% and 4.18% at
closing, respectively.  Additionally, the available credit
enhancement for the class C notes in both series has increased to
27.10% from 1.45% over the same period.

While the available credit enhancement for series 2 2007's class A
and B notes is commensurate with higher ratings than those
currently assigned, S&P's RAS criteria caps its ratings on these
classes of notes at six and four notches, respectively, above the
unsolicited long-term rating on the Republic of Italy
(BBB-/Stable/A-3).  S&P has therefore affirmed its 'AA- (sf)' and
'A (sf)' ratings on the class A and class B notes, respectively.

As of the August 2015 payment date, the transaction's net default
ratio was 3.77%, compared with 3.16% at the end of May 2014.  S&P
believes that there is an increased likelihood of a breach of the
4.40% cumulative net default rate trigger and a subsequent
deferral of the interest on the series 1 2006 and series 2 2007's
class C notes.  S&P has therefore affirmed its 'B+ (sf)' ratings
on the class C notes in both series.  S&P believes that the
likelihood of a breach of the interest rate deferral trigger for
the class B notes is remote in a 'A' rating scenario.

The portfolio comprises three revolving pools of performing
consumer loans (new vehicle loans, used vehicle loans, and
personal loans).  The series 2 2007 notes began amortizing in
August 2012, whereas the series 1 2006 notes began amortizing in
August 2011.

Agos-Ducato is the originator of Italian auto asset-backed
securities (ABS) transaction Sunrise's series 1 2006 and series 2
2007, which closed in June 2006 and May 2007, respectively.

RATINGS LIST

Sunrise S.r.l.

Ratings Affirmed

Class            Rating

EUR507.25 Million Limited-Recourse Asset-Backed Floating-Rate
Notes Series 2 2007

A                AA- (sf)
B                A (sf)
C                B+ (sf)

EUR1.014 Billion Limited-Recourse Asset-Backed Floating-Rate Notes
Due 2030
Series 1 2006

C                B+ (sf)



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P O R T U G A L
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COMBOIOS DE PORTUGAL: S&P Raises ICR to 'BB+', Outlook Stable
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it has raised its
long-term issuer credit rating on Portuguese rail operator
Comboios de Portugal E.P.E (CP) to 'BB+' from 'BB'.  The outlook
is stable.

At the same time, S&P raised to 'BB+' from 'BB' its issue rating
on CP's senior unsecured notes.

The rating action follows S&P's upgrade of Portugal on Sept. 18,
2015.

S&P equalizes its long-term rating on CP with that on Portugal,
based on S&P's view of the almost certain likelihood that CP would
receive timely and sufficient extraordinary support from the
Portuguese government in the event of financial distress.

S&P regards CP as a government-related entity (GRE) under S&P's
criteria.  S&P bases its assessment of the likelihood of
government support on its view of CP's critical role for and
integral link with Portugal.

S&P believes CP's role for the Portuguese government is "critical"
given that CP is virtually the only passenger rail transport
provider in Portugal.  In S&P's opinion, the company plays a key
role in implementing the government's policy of fostering urban
mobility in the country.  S&P believes that, as such, CP provides
a key public service that a private entity could not readily
undertake and that the government itself would likely conduct if
CP ceased to exist.

S&P views CP's link with the government as "integral" given the
company's 100% state ownership and its strong legal status as a
public company.  Moreover, CP operates under a strategy defined
and monitored by the government.  As an EPE, CP enjoys a stronger
legal status than "sociedades anonimas" (public limited
companies).  Even though EPEs are generally subject to private
law, they are not subject to the bankruptcy laws applicable to
sociedades anonimas.  Only the central government can liquidate an
EPE.

S&P assesses CP's stand-alone credit profile (SACP) at 'ccc+'
based on S&P's view of the company's capital structure as
unsustainable. S&P considers that its financial commitments and
leverage remain untenable in the short-to-long term on a stand-
alone basis, as the company cannot meet its financial requirements
without government support.

S&P continues to assess CP's business risk profile as "weak" due
to its business model, which includes a large component of public
service that is characterized by ongoing negative operating cash
flow generation.  This is due to limited operating efficiency,
with insufficient subsidies from the state to cover below-cost
tariffs.  On the other hand, S&P recognizes the company's
strategic position as the national railway operator, with only
marginal competition.

S&P still assesses CP's financial risk profile as "highly
leveraged," given its very weak credit ratios and cash flow
protection measures.  The company has negative net worth due to
the accumulation of persistent losses, and remains highly
leveraged with debt of around EUR4.2 billion as Dec. 31, 2014.

The stable outlook mirrors that on Portugal and reflects S&P's
view that the government support that CP receives is unlikely to
be challenged or to change in the foreseeable future.

S&P could upgrade CP if the ratings agency raised its long-term
rating on the Republic of Portugal.

S&P could lower the rating on CP if S&P lowered its long-term
rating on the Republic of Portugal.

In addition, S&P could downgrade CP if it revised downward its
view of the likelihood of extraordinary support from the
Portuguese government.  This could be the case if the general
government were to exclude CP from its scope of consolidation or
if the state budget no longer covered its future funding needs,
which S&P currently views as unlikely.



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R U S S I A
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ANTALBANK LLC: Placed Under Provisional Administration
------------------------------------------------------
The Bank of Russia, by its Order No. OD-2536, dated September 24,
2015, revoked the banking license of Moscow-based credit
institution CB Antalbank LLC from September 24, 2015.

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

Given the unsatisfactory quality of assets, CB Antalbank made
inadequate assessment of the loan portfolio and the risks assumed.
Proper credit risk assessment resulted in the current year in
repeated occurrence of reasons for implementing insolvency
(bankruptcy) prevention measures.  Besides, the credit institution
failed to meet the requirements of the supervisor's instructions
aimed at restricting its activities.

The Bank of Russia, by its Order No. OD-2537, dated
September 24, 2015, appointed a provisional administration to
CB Antalbank for the period until the appointment of a receiver
pursuant to the Federal Law "On Insolvency (Bankruptcy)" or a
liquidator under Article 23.1 of the Federal Law "On Banks and
Banking Activities".  In accordance with federal laws, the powers
of the credit institution's executive bodies are suspended.

CB Antalbank is a member of the deposit insurance system.  The
revocation of banking license is an insured event envisaged by
Federal Law No. 177-FZ "On Insurance of Household Deposits with
Russian Banks' regarding the bank's obligations on deposits of
households determined in accordance with the legislation.

According to the financial statements, as of September 1, 2015, CB
Antalbank LLC ranked 198th by assets in the Russian banking
system.


GAZENERGOBANK OJSC: DIA to Oversee Rehabilitation Measures
----------------------------------------------------------
The Bank of Russia on Sept. 21 approved amendments to the plan for
participation of the state corporation Deposit Insurance Agency in
bankruptcy prevention of Kaluga-based OJSC Gazenergobank.

The Agency held a tender to select an investor who proposed the
most favorable conditions for bankruptcy prevention financing of
Gazenergobank.  Resulting the tender the open joint-stock company
Joint-stock commercial bank of support to commerce and business
OJSC SKB-bank has been selected.

The participation plan provides taking over Gazenergobank by the
Investor, as well as its reorganization through merger with SKB-
bank.


INVESTTORGBANK JSCB: DIA to Oversee Rehabilitation Measures
-----------------------------------------------------------
The Bank of Russia on Sept. 21 approved amendments to the plan for
participation of the state corporation Deposit Insurance Agency in
bankruptcy prevention of Moscow-based INVESTMENT TRADE BANK JSCB
Investtorgbank (PJSC).

In accordance with the decision taken, initially JSCB ROSSIYSKY
CAPITAL (PJSC) was engaged as an investor to carry out financial
rehabilitation of Investtorgbank.

Investtorgbank was provided with funds to maintain liquidity in
the amount sufficient for its continuous operation and for the
recovery of timely settlements with the creditors.

The Agency will hold a tender to select an investor to carry out
financial rehabilitation of the bank.  The winner will be the
entity to offer the most favorable conditions for Investtorgbank
financial rehabilitation.


RUSAL BRATSK: Fitch Assigns 'B+' IDR, Outlook Stable
-----------------------------------------------------
Fitch Ratings has assigned Russia-based OJSC Rusal Bratsk, United
Company RUSAL's fully consolidated subsidiary, a Long-term Issuer
Default Rating of 'B+'.  The Outlook is Stable.

Bratsk's senior unsecured rating has been assigned at 'B'/RR5.
The Recovery Rating of 'RR5' and consequent notching down of the
senior unsecured debt by one notch from the IDR reflects the
significant amount of prior-ranking secured debt in the Rusal
Group's debt portfolio.

KEY RATING DRIVERS

Parental Support

Bratsk's 'B+' IDR is supported by the creditworthiness of its
parent Rusal, as well as strong legal, operational and strategic
ties between the two entities.  Bratsk's aluminium smelter
represents approximately 30% of the Rusal Group's aluminium output
and is the group's bond issuing entity.  Bonds issued by Bratsk
benefit from an irrevocable offer provided by Rusal and
suretyships of alumina refinery Rusal Achinsk and Krasnoyarsk
aluminium smelter.

Aluminium Market Rebalancing Required

Demand for aluminium has increased at an average rate of 7% per
annum since 2008 and is expected to keep rising in excess of 5%
per annum until 2018.  The low prices experienced by producers
since 2009 are, in our opinion, a function of excess supply and
warehousing issues rather than a lack of demand.  For example, the
negative trend in LME aluminium prices seen so far in 2015
primarily reflects a surge in Chinese semis exports.  While
evidence in recent months suggests that export levels may have
peaked in the short-term, a sustainable increase in the LME price
will require further permanent smelter curtailments or shutdowns.

Competitive Cost Position

Rusal is simultaneously benefiting from (i) the results of its
cost-saving measures launched in 2013 (idling of 650kt of its
least efficient assets) and (ii) a highly favourable FX position
following the recent rouble devaluation, positively affecting its
cash costs (55%-60% of Rusal's cash costs are rouble-denominated).
As a result, Rusal has moved to the 1st quartile of the global
aluminum cost curve and has seen improved profitability from 2014.

Additionally, most of Rusal's smelters, including Bratsk, are
located in Siberia and benefit from comparatively cheap
electricity prices.  The Boguchanskaya HPP joint venture power
plant (part of the BEMO project) was launched at the end of 2014,
contributing further to maintaining low-cost electricity
procurement for the group.

Vertically Integrated Business Model

Rusal operates throughout the aluminum value chain with bauxite
mining, alumina and aluminum production.  The company's project in
Guinea (Dian Dian) will also make Rusal 100% self-sufficient in
bauxite.  This provides the company with significant control over
its costs structure, and its exposure to market dynamics.

Leading Market Position

Despite the idling of 650kt of capacity in 2013/14, Rusal remains
one of the world's largest aluminium producer, with over 3,600kt
of aluminium output in 2014 (7% of the global demand).

Stake in Norilsk Nickel

Rusal owns 27.8% of the world's largest nickel producer, Norilsk
Nickel (BBB-/Negative).  The market value of that stake (before
premium) was USD7.4 bil. as at end-June 2015, or 75% of Rusal's
total indebtedness, providing a significant potential source of
funds to repay debt.  Additionally, Norilsk Nickel has
historically paid out significant dividends to its shareholder,
and is now committed to distributing 50% of its EBITDA but no less
than USD2bn annually starting from 2016 and during the period of
the current shareholder agreement (i.e. USD556 mil./year minimum
payable to Rusal).  Fitch estimates such dividends to equal USD820
million/ year on average over the same period, contributing
materially to Rusal's debt service.

High Group Debt Burden

Rusal has been highly leveraged since its purchase of a 25% stake
in Norilsk Nickel in 2008.  The company has benefitted from strong
support from its bank group (particularly Russian state-owned
Sberbank) and has consistently reduced its leverage level
throughout the period, to USD10.2 bil. in 2014 (Fitch-adjusted)
and to USD9.4 billion at end-1H15 from USD14.5 billion in 2009.
Further deleveraging remains a key priority for the company, which
foresees possible acceleration in repayments from potential
upsides from Norilsk Nickel dividends.  Under Fitch's conservative
aluminum price assumptions funds from operations (FFO) gross
leverage will remain in the range of 3.5x-4x range over up to
2018.

Corporate Governance

In line with Fitch's approach for other Russian corporates, it has
notched Bratsk's IDR down by two notches to reflect the legal and
governance environment and structures present in Russia.

Limited Liquidity Post-2016

Overall liquidity for Rusal remains adequate.  Under Fitch's
current mid-cycle aluminium price assumptions Rusal can cover its
entire debt service until 2016, mostly from free cash flow ((FCF)
after dividends received from Norilsk Nickel) but also from cash
on balance sheet.  However, the company will have to roll-over
maturities in 2017 and 2018 if the all-in aluminum price (LME
price plus physical premiums) remains under USD2,250/t (in 2014
all-in company's realized price stood at USD2,246/t). As at 30
June 2015 cash balances amounted to USD904 mil.

KEY ASSUMPTIONS

   -- Fitch Aluminum LME base prices: USD1,743/t in 2015,
      USD1,700/t in 2016, USD1,800 in 2017.  Aluminum premiums to
      average USD230/t for the period

   -- In Fitch's forecasts it has used these RUB/USD exchange
      rates: 60 in 2015, 65 in 2016 and 55 thereafter

   -- Fitch's assumption is for stable volumes (3,638 kt
      annually)

RATING SENSITIVITIES

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

   -- Clear signs of stabilization of aluminum market
      fundamentals as reflected in a sustained improvement in
      aluminum prices

   -- Sale of Norilsk Nickel's shares with proceeds used for
      deleveraging of Rusal Group

   -- Improvement of credit metrics for Rusal on a sustained
      basis including FFO gross leverage below 3.5x and EBITDA
      margin of more than 20%

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

   -- FFO gross leverage sustained above 4.0x with limited or no
      prospect for deleveraging

   -- EBITDA margin sustainably below 10%

FULL LIST OF RATING ACTIONS

OJSC Rusal Bratsk

   -- Long-term IDR 'B+'; Outlook Stable
   -- Senior Unsecured 'B'/RR5



TUSAR JSC: Put Under Provisional Administration, License Revoked
----------------------------------------------------------------
The Bank of Russia, by its Order No. OD-2480, dated
September 18, 2015, revoked the banking license of Moscow-based
credit institution JSC TUSARBANK from September 18, 2015.

The Bank of Russia took such an extreme measure -- revocation of
the banking license -- due to the credit institution's failure to
comply with federal banking laws and Bank of Russia regulations,
all capital adequacy ratios below 2%, non-ability to meet monetary
obligations to its creditors and the application of measures
envisaged by the Federal Law 'On the Central Bank of the Russian
Federation (Bank of Russia)'.

TUSARBANK implemented high-risk lending policy and did not create
loss provisions adequate to the risks assumed.  Due to a poor
quality of assets, which did not generate sufficient cash flow,
TUSARBANK did not execute its obligations to depositors.  Besides,
after TUSARBANK complied with the supervisor's requirement to
create loss provisions adequate to the risks assumed, the bank's
capital adequacy ratios were reduced to a critical level.  In
these circumstances, guided by Article 20 of the Federal law "On
Banks and Banking Activities", the Bank of Russia performed its
obligation and revoked the banking license from the credit
institution.

By its Order No. OD-2481, dated September 18, 2015, the Bank of
Russia appointed a provisional administration to TUSARBANK for the
period until the appointment of a receiver pursuant to the Federal
Law "On the Insolvency (Bankruptcy)" or a liquidator under Article
23.1 of the Federal Law "On Banks and Banking Activities".  In
accordance with federal laws, the powers of the credit
institution's executive bodies are suspended.

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

As of September 1, 2015, JSC TUSARBANK ranked 191st by assets in
the Russian banking system.


UTAIR: Unlikely to Follow Transaero Fate, Russian Gov't Says
------------------------------------------------------------
TASS reports that the Russian government sees no rationale for
UTair airline to follow the fate of Transaero, which was merged
with Russia's flagship air carrier Aeroflot.

"UTair is unlikely to follow Transaero fate given the sum of
requested state guarantees and the company's position on the
market.  We don't see that /UTair/ may follow the fate of
Transaero," TASS quotes a federal official familiar with the
situation as saying on Sept. 21.

Last week, Vedomosti business daily wrote that an inter-agency
committee at the Economic Development Ministry approved state
guarantees worth US$9.5 billion (US$144 million) to be granted to
UTair, and the issue now should be approved by the government
commission, TASS relates.

At the end of 2014, dozens of lawsuits against UTair and its
subsidiaries were filed to various courts, TASS relays.  The total
amount of creditor claims is more than RUR9 billion (US$143.76
million), TASS discloses.  Several creditors filed claims to
recognize UTair Airlines as bankrupt, TASS notes.

Moscow International Airport CEO Vnukovo Vitaly Vantsev said
Utair's debt to Vnukovo decreased by 22% to RUR700 million
(US$10.27 million) in one year.

According to TASS, Mr. Vantsev said that despite serious current
payments, Utair manages to repay older debts, which is "completely
fine with the airport."

"This is generally better than losses. Writes-off in bankruptcy
are the worst that can be   A long-term cooperation during
restructuring is better," Mr. Vantsev, as cited by TASS, said.

UTair is an airline with its head office at Khanty-Mansiysk
Airport in Russia.  It operates scheduled domestic and some
international passenger services, scheduled helicopter services
(e.g. from Surgut) plus extensive charter flights with fixed-wing
aircraft and helicopters in support of the oil and gas industry
across Western Siberia.



VOCBANK JSC: DIA to Oversee Rehabilitation Measures
---------------------------------------------------
The Bank of Russia on Sept. 21 approved amendments to the plan for
participation of the state corporation Deposit Insurance Agency in
bankruptcy prevention of Nizhny Novgorod-based
JSC Volga-Oka Commercial Bank.

VOCBANK was initially provided with funds to maintain liquidity in
the amount sufficient for timely settlements with the creditors
and its continuous operation.

The plan envisages a tender to select an investor to carry out
financial rehabilitation of the bank.  The winner will be the
entity to offer the most favorable conditions for VOCBANK
financial rehabilitation.


ZERNOBANK JSC: Placed Under Provisional Administration
------------------------------------------------------
The Bank of Russia, by its Order No. OD-2534, dated
September 24, 2015, revoked the banking license of Barnaul-based
credit institution JSC Zernobank from September 24, 2015.

The Bank of Russia took such an extreme measure -- revocation of
the banking license -- because of the credit institution's failure
to comply with federal banking laws and Bank of Russia
regulations, application over the year of supervisory measures
envisaged by the Federal Law "On the Central Bank of the Russian
Federation (Bank of Russia)", and taking account of a real threat
to the interests of creditors and depositors.

Due to the unsatisfactory quality of assets not generating
sufficient cash flows, starting this September, Zernobank
systematically failed to timely honor its obligations to
creditors.  The management and owners of the bank did not take
measures to normalize its activities and recover its financial
status.  Due to the increasing threat to the interests of
creditors and depositors and in order to preserve bankruptcy
assets, the Bank of Russia decided to revoke the banking license
of the credit institution.

The Bank of Russia, by its Order No. OD-2535, dated
September 24, 2015, appointed a provisional administration to JSC
Zernobank for the period until the appointment of a receiver
pursuant to the Federal Law "On Insolvency (Bankruptcy)" or a
liquidator under Article 23.1 of the Federal Law "On Banks and
Banking Activities".  In accordance with federal laws, the powers
of the credit institution's executive bodies are suspended.

Zernobank is a member of the deposit insurance system.  The
revocation of banking license is an insured event envisaged by
Federal Law No. 177-FZ "On Insurance of Household Deposits with
Russian Banks" regarding the bank's obligations on deposits of
households determined in accordance with the legislation.

According to the financial statements, as of September 1, 2015,
JSC Zernobank ranked 392nd by assets in the Russian banking
system.



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


REPSOL INT'L: Fitch Affirms 'BB+' Rating on Hybrid Instruments
--------------------------------------------------------------
Fitch Ratings has affirmed Spanish oil and gas company Repsol,
S.A.'s Long-term Issuer Default Rating (IDR) at 'BBB'.  Fitch has
also affirmed subsidiary Talisman Energy Inc.'s Long-term IDR at
'BBB-'.  The Outlooks are Stable.

Repsol's ratings are supported by the company's sound business
diversification with a strong downstream segment and a larger and
more geographically diversified upstream segment after the
acquisition of Talisman.  The ratings are constrained by high
leverage relative to peers and uncertainty over the profitability
of upstream production, mainly in North America and the North Sea.

Fitch views the strategic and operational ties between Repsol and
Talisman as strong, but due to the lack of direct debt guarantees
and cross default clauses in Repsol's debt documentation, we rate
Talisman, using a top-down approach, one notch below Repsol's
rating.

KEY RATING DRIVERS

Larger Upstream with Talisman
The acquisition of Talisman in May 2015 has significantly
increased Repsol's hydrocarbon production profile.  Average oil
and gas production (including JVs) stood at 525 thousand barrels
of oil equivalent per day (kboepd) in 2Q15, 55% higher yoy.
Output stood at 660kboepd in June 2015 once Talisman production
was fully accounted for.

Talisman's assets are mainly located in developed countries, which
contributed to an increase in oil and gas production from OECD
countries in total output to 29%, from 12% for Repsol, prior to
the acquisition.  In Fitch's view, the acquisition therefore
supports Repsol's credit profile and partly mitigates the
company's historical reliance on Latin America.

Challenges Remain

The acquisition of Talisman brings also a number of challenges for
Repsol.  Fitch downgraded Talisman to 'BBB-' from 'BBB' in
September 2014 due to its weakened production and reserve
profiles, fairly high finding, development & acquisition costs,
increased exposure to natural gas, remaining non-core asset sale
obstacles and potentially higher leverage metrics without targeted
asset sales.  A prolonged weakness in oil and gas prices may also
put pressure on Talisman's unconventional oil and gas production
in North America and assets in the North Sea, which have higher
production costs.

Stretched Credit Metrics in 2016

Under Fitch oil and gas price deck (USD55/bbl in 2015, USD65/bbl
in 2016 and USD75/bbl in 2017 and USD80/bbl long-term and NBP gas
prices of USD6/mcf in 2015 and 2016, USD7/mcf in 2017 and USD8/mcf
long-term), we expect stretched credit metrics in 2016 with funds
from operations (FFO) adjusted net leverage of around 3.2x, before
recovering to below 3.0x in 2017, a level commensurate with the
'BBB' rating level.  This is under the assumption that the
upstream segment will see improved results in 2016 as more
favorable hydrocarbon prices will offset lower downstream margins.
Fitch expects that further improvement in the upstream segment
results post-2016 and a stable contribution of the downstream
segment will result in deleveraging.

Strategic Update Key

Fitch expects that the combined entity to have greater flexibility
regarding the timing and allocation of capital expenditure.
Coupled with strong vertical integration, this should help
maintain a healthy balance sheet with FFO adjusted net leverage
below the 3.0x threshold for a 'BBB' rating.

Repsol recently announced it plans to maintain upstream capex in
2016 on a similar level compared with 2015 despite higher oil and
gas output.  The company also increased its estimate for synergies
from Talisman acquisition to USD350 million from USD220 million.
Fitch also includes in its forecasts the planned disposals of
EUR0.9 billion in 2015-2016 and issue of EUR3 billion of hybrid
notes in 2H15-2016, which should further mitigate weaker upstream
segment results and the impact of Talisman acquisition.  Yet,
Fitch will only be able to fully assess the impact of Talisman
acquisition on Repsol's ratings once the company announces its
updated strategy in 4Q15.

Strong Refining Margins in 2015

Repsol's upstream business faced headwinds in 1H15 due to the weak
oil prices and no production from Libya.  The weaker upstream
results were mitigated by downstream performance, which benefitted
from higher utilization rates and improved refining margins.

Lower fuel prices, coupled with GDP growth, resulted in higher
global demand for fuel products.  With output from the new
refineries in the Middle East lower than initially expected, in
1H15 European refiners experienced refining margins last seen
before the financial crisis of 2008.

Repsol has increased its earnings guidance for the downstream
segment twice so far in 2015, most recently to EUR3.2 billion-
EUR3.4 billion, vs. EBITDA of EUR1.3 bil. in 2014.  Although Fitch
views the current exceptionally positive refining environment as
temporary, we still expect downstream performance in 2016-2018 to
be stronger than in the last two years, supporting Repsol's
business and financial profile.

Top-Down Approach to Talisman

Fitch expects Repsol will reinforce Talisman's near-term
capitalization and liquidity position.  Talisman's ratings are
therefore driven by the subsidiary's linkage with Repsol due to
their strong strategic and operational ties.  At the same time,
the lack of direct debt guarantees and hence strong legal ties are
reflected in Talisman being rated one notch below Repsol's via
Fitch's top-down rating approach.

KEY ASSUMPTIONS

   -- Fitch's key assumptions within our rating case for the
      issuer include:
   -- Brent prices of USD55/bbl in 2015, USD65/bbl in 2016,
      USD75/bbl in 2017 and USD80/bbl long-term
   -- West Texas Intermediate (WTI) prices of USD50/bbl in 2015,
      USD60/bbl in 2016 and USD70/bbl long term
   -- EUR5 billion capex in 2016
   -- EUR0.9 billion divestments in 2015-2016
   -- EUR3 billion of hybrid bond issue in 2H15-2016

RATING SENSITIVITIES

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

   -- FFO adjusted net leverage of around 2.5x and FFO fixed
      charge cover of 8x (2014: 2.8x) on a sustained basis.
   -- Stable FFO margin greater than 10% (2014: 4%).
   -- Capex at no more than 100% operating cash flow.

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

   -- FFO adjusted net leverage above 3.0x and FFO fixed charge
      cover of 6x and below on a sustained basis.

LIQUIDITY

At June 30, 2015, Repsol had a cash position of EUR2.5 billion
(excluding cash at JV) and undrawn credit lines amounting
EUR5.8 billion against short-term debt of EUR4.8 billion
(excluding EUR2.7 billion of related-party balances).  Fitch
expects Repsol to issue EUR3 billion of hybrid facilities in 2H15-
2016 as part of its financing for the acquisition of Talisman.
This will improve the debt maturity profile of Repsol.  The
company issued EUR2 bil. hybrid facilities in 1H15.

FULL LIST OF RATING ACTIONS

Repsol S.A.
  Long-term IDR affirmed at 'BBB'; Outlook Stable
  Senior unsecured debt affirmed at 'BBB'
  Short-term IDR affirmed at 'F3'

Repsol International Finance
  Senior unsecured debt affirmed at 'BBB'
  Commercial paper affirmed at 'F3'
  Hybrid capital instruments affirmed at 'BB+'

Talisman Energy Inc.
  Long-term IDR affirmed at 'BBB-'; Outlook Stable
  Senior unsecured debt affirmed at 'BBB-'
  Short-term IDR affirmed at 'F3'
  Commercial paper affirmed at 'F3'
  Cumulative perpetual preferred stock: 'BB' rating withdrawn as
  the instrument was bought by Repsol upon the Talisman
  acquisition


SPAIN: Catalonia Independence Vote to Hit Banking System
--------------------------------------------------------
Mehreen Khan at The Telegraph reports that Spain's central bank
governor has warned the Catalan region will be automatically
ejected from the eurozone and its banking system brought to
collapse, if voters choose to back independence for the region
this weekend.

Luis Maria Linde, head of the Bank of Spain, said the region would
not be able keep the single currency and its position in the
European Union as a whole would be under threat should it decide
to break away from Spain, The Telegraph relates.

"The exit from the euro is automatic, the exit from the European
Union is implied," The Telegraph quotes Mr. Linde as saying.

According to The Telegraph, Catalan banks would also "stop having
access to the European Central Bank's facilities", cutting off the
last remaining link between the financial system and the eurozone.

Latest polls show the region's separatist movement, led by
president Artus Mas, is on course for a narrow win in local
elections at the weekend, The Telegraph notes.

A majority in the Catalan parliament would set the separatists on
course to launch a full-blown referendum on independence, The
Telegraph states.

Mr. Linde added the central government could also impose capital
controls on the banking system, The Telegraph relates.

Spain's banking association has also warned of the profound legal
uncertainty that would hit lenders in the event of Catalan
secession, The Telegraph relays.



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


FERREXPO PLC: Fitch Puts 'CCC' IDR on CreditWatch Negative
----------------------------------------------------------
Fitch Ratings has placed Ferrexpo plc's Long-term Issuer Default
Rating and senior unsecured ratings of 'CCC' on Rating Watch
Negative.  The Recovery Rating on the senior unsecured rating is
'RR4'.  Ferrexpo's Short-term IDR is affirmed at 'C'.

The rating action follows the announcement by the National Bank of
Ukraine (NBU) to declare insolvent Ferrexpo's transactional bank,
Bank Finance and Credit JSC (Bank F&C).  Bank F&C is a related
party ultimately controlled by Ferrexpo's largest shareholder
Kostyantin Zhevago.  Out of Ferrexpo's total cash balance of
USD280 million as at September 16 approximately USD174 million was
held at Bank F&C and has now been frozen for an indeterminate
period.

The RWN reflects uncertainty regarding the ultimate recoverability
of funds at Bank F&C.  Previously Fitch had factored in that this
cash could become temporarily or permanently unavailable due to
the inherently weak financial system in Ukraine, but had assumed
it as "non -restricted" and available for operational purposes in
our base rating case.  The insolvency of Bank F&C is also, in our
view, likely to prolong Ferrexpo's current discussions with Pre-
Export Finance (PXF) lenders regarding a reduction in monthly
amortization requirements and an extension of maturity dates.

Absent access to the cash held at Bank F&C, an extension of PXF
maturities/amortization or other measures to boost liquidity we
estimate that Ferrexpo will deplete its remaining cash reserves
over the next six to 12 months, depending on movement in iron ore
prices over this period.

KEY RATING DRIVERS

Ukrainian Risk Exposure

Ferrexpo's operating base is in Ukraine.  The country has recently
experienced high domestic inflation, combined with significant
currency depreciation (more than 50% in 2014 vs.  USD and greater
than 100% YTD), a brief electricity supply disruption and a delay
in VAT repayment by the state.  The ongoing military conflict in
the Donbass region has not directly impacted Ferrexpo's operations
and transport infrastructure due to their location in the Poltava
region, approximately 425km north of Donetsk.

Liquidity Limited by Debt Maturities

Lack of access to funds held at Bank F&C materially weakens
Ferrexpo's liquidity profile.  In the absence of access to this
cash, an extension of PXF maturities/amortization or other
measures to boost liquidity we estimate that Ferrexpo will deplete
its remaining cash reserves over the next six to 12 months
depending on movement in iron ore prices over this period.

Ferrexpo continues to generate positive free cash flow (FCF) and
is currently negotiating an extension of PXF maturities and a re-
profiling of required amortization.  An extension of PXF
maturities offers the potential to put the company's liquidity on
a more sustainable basis.  However, the outcome of ongoing
negotiations with the banks is difficult to predict.  In July 2015
Ferrexpo exchanged its USD286 million 2016 notes for USD100
million cash consideration and USD186 million of new notes
maturing in 2019.

Decreasing but Still Robust Profitability

Fitch expects the company's profitability profile to remain robust
in 2015, with nearly a 30% EBITDA margin.  This is despite an
expected significant reduction in revenues (down 30% yoy), offset
by currency depreciation.  The ongoing low iron ore prices and
cost inflation will, however, erode the EBITDA margin in 2016,
which Fitch expects to improve over the medium term (between 25%
and 34%).

Assuming the company succeeds in re-negotiating its PXF
maturities, Fitch forecasts funds from operations (FFO)-adjusted
gross leverage to remain flat in 2015 at 3.7x (vs. 3.6x in 2014),
before peaking above 4.0x in 2016 (under Fitch's updated iron ore
price deck).  This is forecast to stabilize at around 2.0x
thereafter, due to the expected modest improvement in iron ore
prices over the longer term and absolute debt reduction.

Low Iron Ore Price Environment

Year-to-date 62% iron ore prices have averaged USD61 per tonne,
down approximately 50% yoy, reflecting oversupply in the market
and a slowdown in demand from the Chinese steel industry.  Fitch's
modeling assumption is for iron ore prices to average USD50 per
tonne in 2H15 and 2016, below the 2014 average price of USD97 per
tonne, which will negatively impact the company's earnings and
credit metrics.

As a pellets producer, Ferrexpo will continue to benefit from a
premium over the benchmark 62% iron ore price, which has widened
over the past six months.  Ferrexpo recently completed its USD2
billion modernization and expansion program and remains on track
to produce approximately 12 million tonnes of 65% Fe pellets per
year by 2016.

Competitive Cost Producer

Ferrexpo's cost position has moved down to the top of the first
quartile of the global cost curve.  In 2014 and 1H15, cash costs
improved significantly compared with the previous two years, due
to rising volumes from the ramp-up of the Yeristovo mine and
currency depreciation (50% of operating costs are linked to the
hryvnia).  Costs had decreased 27% as of 1H15 and reached USD33
per tonne, down from USD46 in 2014.  Energy costs represent
approximately 50% of total costs and should contribute to further
cost savings, due to recent falls in global oil prices.

KEY ASSUMPTIONS

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

   -- Fitch iron ore price deck: USD56/t in 2015 (based on 1H 15
      realized price), USD50/t in 2016, USD60/t in 2017, USD60/t
      in the long term
   -- Forecast price premium for pellets based on 1H15 realized
      premium
   -- Production volumes in line with management's expectations:
      12mt p.a. iron ore pellets by 2016
   -- USD/UAD 22 in 2015

RATING SENSITIVITIES

Changes to Ukraine's Country Ceiling, which may accompany a change
to its sovereign rating, would likely result in a corresponding
action on Ferrexpo's ratings.

Fitch would expect to the resolve the Rating Watch upon completion
of current negotiations with PXF lenders and clarification
regarding the likelihood of the company being able to access cash
held at Bank F&C.

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

   -- Downgrade of sovereign rating
   -- Weakening of Ferrexpo's liquidity position due to lower
      ongoing cash flows caused by lower- than-expected iron ore
      prices.

Positive: Future developments that could lead to positive rating
action include:

   -- Positive action on the sovereign rating.

FULL LIST OF RATING ACTIONS

Ferrexpo plc
   --Long-term IDR 'CCC' placed on Rating Watch Negative
   --Short-term IDR 'C' affirmed

Ferrexpo Finance plc
   -- Senior unsecured rating 'CCC' placed on Rating Watch
      Negative; 'RR4'


PRIVATBANK: S&P Lowers Counterparty Credit Ratings to 'SD'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its long- and short-
term counterparty credit ratings on Ukraine-based PrivatBank to
'SD' from 'CC/C'.

The downgrade follows PrivatBank's signing of a supplemental loan
agreement on Sept. 8, 2015, regarding US$200 million bonds due
September 2015.  As part of the agreement, PrivatBank changed the
interest rate to 10.25% from 9.375% on the bonds and extended the
maturity date to Jan. 15, 2016, from Sept. 23, 2015.  The maturity
of the 2015 bonds can be further extended to Jan. 2018, upon
agreement on restructuring with holders of the bank's
Feb. 2016, maturing bonds, which should be reached on or before
Jan. 5, 2016.

S&P regards the agreed extension of the 2015 bonds as a distressed
exchange, which is tantamount to a selective default, as per S&P's
criteria.  This is based on S&P's understanding that the investors
would not receive the full value of the bonds on time as
originally agreed.  S&P expects that extension of the 2015 bonds
will be a selective default -- as opposed to a general default --
and so far S&P is aware of no other debt obligations currently in
default.  However, S&P is continuing to monitor the situation in
case a general default occurs.

PrivatBank has initiated the extension of two Eurobond maturities
in light of the very difficult economic situation in Ukraine, as
well as in accordance with the requirements of the National Bank
of Ukraine (NBU) to increase its capitalization and ease pressure
on the country's currency market.

After the payment of a coupon on Sept. 23, 2015, following the
completion of the consent solicitation process, S&P plans to
remove PrivatBank from 'SD' and raise the issuer credit rating.
Before S&P do this, it will also complete a forward-looking review
taking into account the benefits realized from the restructuring
as well as any other interim developments.  In particular, S&P
will take into account the bank's plans to undertake restructuring
of bonds due February 2016.

"Our assessment of PrivatBank's stand-alone credit profile (SACP)
stands unchanged at 'ccc', reflecting the bank's "adequate"
business position, "weak" capital and earnings, "adequate" risk
position, and "weak" funding and liquidity profile.  The bank
continues to rely on the NBU for liquidity assistance to address
continuing deposit outflows.  Our assessment also reflects our
view that the planned Eurobond restructuring will have stifled
investors' confidence, resulting in the bank having noticeably
weaker liquidity than other Ukrainian banks.  That said, we
understand that PrivatBank is currently honoring its obligations
to its depositors," S&P said.

S&P does not rate any debt issued by PrivatBank.



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


ARROW GLOBAL: S&P Affirms 'BB-' Rating on Notes Due 2021
--------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'BB-' long-term issue rating on Arrow Global Finance PLC's euro-
denominated, floating-rate notes due 2021, which are subject to a
proposed tap. Arrow Global Finance, the issuer, is a wholly owned
subsidiary of U.K.-based purchaser of distressed debt, Arrow
Global Group PLC (the group).  The recovery rating of '2' on the
notes is unchanged, reflecting S&P's expectation of substantial
recoveries for noteholders, in the lower half of the 70%-90%
range, in the event of default.  The rating is subject to S&P's
review of the final documentation for the tap.

S&P understands that the group will use the proceeds to repay part
of the outstanding amounts under the revolving credit facility
(RCF) and fund related fees and expenses.

S&P also understands that the notes will continue to be secured by
a first-ranking interest on all the shares of Arrow Global Group's
main subsidiaries and substantially all of its assets.  S&P
considers that this security package is similar to the package for
Arrow Global Finance's existing senior secured debt.

In S&P's view, the proposed tap issue does not affect Arrow Global
Group's financial risk profile.  S&P's issuer credit rating on the
group (B+/Stable/--) is unaffected.

The recovery rating is '2', indicating that S&P expects the
holders of the existing senior secured notes to recover between
70%-90% of principal, at the lower end of the range, in the event
of a payment default.  S&P used a liquidation-value approach to
analyze the combined group's recovery prospects, given the
likelihood that the business would not retain value as an
operating entity after a bankruptcy.  S&P's calculation starts
with the valuation of the group's receivables, to which it applies
a 25% discount, in line with the approach S&P follows for Arrow
Global Group's rated U.K. peers.

S&P also assumes that the RCF would be drawn up to 85% of its
limit to purchase additional receivables, on which the 25%
discount would also apply.  Moreover, S&P discounted the group's
total receivables by an additional 3% to take into account
administrative expenses upon liquidation.  The collateral value
available to senior secured noteholders (after the above haircuts)
is net of the full recovery on the RCF drawdown.


BRIDGE HOLDCO: Moody's Cuts Probability of Default Rating to Caa1
-----------------------------------------------------------------
Moody's Investors Service lowered the Corporate Family Rating
(CFR) and Probability of Default Rating (PDR) of Bridge HoldCo 4
Ltd, the ultimate holding company for the Bridon Group (Bridon) to
Caa1 and Caa1-PD, from B3 and B3-PD respectively. Moody's has also
lowered to B3, from B2, the ratings on the USD286 million senior
secured first lien term loan and the USD40 million senior secured
revolving credit facility and to Caa3, from Caa2, the rating on
the USD111 million senior secured second lien term loan of Bridge
Finco LLC. The outlook on all ratings is negative.

RATINGS RATIONALE

"The downgrade reflects a materially weaker than expected
operating performance over the past few months driven by a severe
downturn in demand for ropes from the oil and gas industry," says
Anke Rindermann, a Moody's Associate Managing Director and lead
analyst for Bridon. "Owing to the significant decline in operating
profit, Bridon's leverage will likely increase to levels above our
prior expectation and above the allowed maximum for full access to
its Revolving Credit Facility (RCF) over the next few quarters,
although we understand from management that the 30% unrestricted
portion of the RCF is deemed to be sufficient at this point" added
Ms. Rindermann.

While the significant drop in the oil price is the primary driver
of the weak trading conditions, Bridon is also experiencing a
reduction in demand across some other segments but primarily in
its oil and gas segment. In the last six months, the number of
operational rigs serving the offshore oil industry has declined by
over 10% with the global utilization rate now in the mid-50s (in
percentage terms). In the onshore industry, the number of
operational rigs has declined by around 33% on a global basis
since January 2015, and by almost 50% in North America. Similarly,
weaker demand from industrial end markets as well as a weaker than
expected recovery in demand from mining customers further
contributed to current trading remaining well below our initial
expectations.

As a result of this weak profitability, key financial indicators
are expected to be considerably worse than our forecast in July
2015, when the outlook on Bridon's ratings was changed to stable
(from positive). Moody's now anticipates that leverage (as
measured by debt / EBITDA) at the end of 2015 will be
significantly higher than 10x and this could well rise further in
2016. Based on our assumption for reported EBITDA (of around
GBP18-20 million), Moody's anticipates that Bridon will likely
breach the financial covenant included within its Revolving Credit
Facility (RCF) documentation within the next few quarters. The
covenant, which is tested when drawings under the RCF exceed 30%
of the committed amount, stipulates that first lien net
debt/EBITDA must be below 6.95x. As a consequence, and absent
either a waiver from the banks or a reduction in leverage, Moody's
expects that Bridon's liquidity profile will materially decline.

Nevertheless, Moody's notes as positive Bridon's measures to
improve cash flow through a reduction in operating expenditure and
cuts to capital expenditure. In addition, working capital is also
expected to decrease and should mitigate a need to draw the RCF at
least in 2015.

WHAT COULD CHANGE THE RATING -- UP/DOWN

Given the negative outlook, Moody's considers a rating upgrade to
be unlikely within the next 12-18 months. However, the outlook
could be stabilized if Bridon undertakes measures to improve its
liquidity situation or if leverage is able to be reduced below 7x
debt / EBITDA on a sustained basis. Conversely, the rating could
be downgraded if Bridon fails to generate positive free cash flow
in 2015 and beyond or is unable to improve its liquidity.

Bridge Holdco 4 Ltd (Bridon) is a globally active manufacturer and
supplier of specialist high quality wire rope. Key product lines
include wire rope and strand, fibre rope and wire, specialist
installations and inspection services, supplying global customers
in the oil & gas, mining, industrial, marine and infrastructure
sectors. The company focuses on safety or mission/performance
critical ropes, requiring high technological know-how and
innovation capabilities. In the last twelve months ending June
2015, Bridon generated revenues of GBP245 million. Bridon is owned
by funds managed by Ontario's Teachers Pension Plan.


CITY LINK: Gov't Rejects Key Proposals on Employee Preference
-------------------------------------------------------------
Logistics Manager reports that the government has rejected a
proposal that employees should be given preference in the order of
payments of an insolvent business.  The report relates that the
recommendation was made by Parliament's Scottish Affairs and
Business, Innovation and Skills Committees following the
insolvency of City Link last Christmas.

According to Logistics Manager, a joint report published by
Parliament's Scottish Affairs and Business, Innovation and Skills
Committees published in March said the processes for company
insolvency did not offer sufficient protection to workers,
suppliers and contractors and the balance should be shifted.

In particular, it recommended that the government update the order
of payments in the Insolvency Act 1986 to give preference to all
of a company's workers, regardless of whether or not they are
directly employed and that consideration is given as to how best
to deal with employees and small sub-contractors and suppliers,
the report says.

However, in the government's response, Sajid Javid, secretary of
state for business, innovation & skills, said: "Any change to the
preference given to a particular group in an insolvency would have
to be at the expense of other creditors. So, for example, if those
who were self-employed were given preferential status of the same
kind as employed workers, this would mean that less money would be
available for other creditors such as consumers and suppliers
(which may be small businesses). This could in turn mean that such
creditors would be more reluctant to extend credit to a company in
difficulty, Logistics Manager relays.

"The Government does not consider a sufficient case has been made
for changing the long-established order of priority in this
respect," the report quotes Mr. Javid as saying.

The report says the committees also called on the government to
bring forward proposals to tackle "bogus self-employment".

In response, Mr. Javid argued that many individuals in so called
'bogus self-employment' will have employment protections
regardless of what their contracts say, the report relays.

"However, the government recognises that an individual's
employment status is not always easy to determine and is
considering these issues further," Mr. Javid, as cited by
Logistics Manager, said.

The committees' other recommendations were less controversial and
the government said it was still looking at them, the report adds.

                          About City Link

City Link Limited was a Coventry-based courier and parcels
delivery company.

Hunter Kelly, Charles King and Tom Lukic of Ernst & Young were
appointed Joint Administrators of City Link Limited and City Link
(Properties) No.1 Limited, on Dec. 24, 2014.


HARLEY CURTAIN: Enters Administration Following Cash Flow Woes
-------------------------------------------------------------
Begbies Traynor on Sept. 21 disclosed that an East Sussex
construction business that provided curtain walling to major
building projects throughout the UK has been placed in
administration.

Julie Palmer and Simon Campbell from business rescue and recovery
specialist Begbies Traynor's Salisbury office were jointly
appointed to handle the administration of Harley Curtain Wall Ltd.
on September 8, 2015.

The company, which was based in Crowborough and launched in 1996,
also specialized in windows, doors, structural glazing and
rainscreen cladding systems.  Projects included high- and low-rise
apartment and office complexes.

A total of 11 people employed by the firm have been made redundant
and various assets have been sold to Harley Facades Ltd, which was
incorporated in 2010.

Ms. Palmer, regional managing partner at Begbies Traynor, said:
"Unfortunately, after reviewing all options we were left with
little choice but to close the business.  The firm had entered
difficulty due to cash flow problems."

Harley Curtain Wall Ltd. reported revenue of GBP6.4 million in
2014 and was renowned for high quality work throughout the UK and
investing in its employees.



===============
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* BOOK REVIEW: The Rise and Fall of the Conglomerate Kings
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Author: Robert Sobel
Publisher: Beard Books
Softcover: 240 pages
List Price: $34.95
Review by David Henderson

Order your personal copy today at http://is.gd/1GZnJk

The marvelous thing about capitalism is that you, too, can be a
Master of the Universe. If you are of a certain age, you will
recall that is the name commandeered by Wall Street bond traders
in their Glory Days. Being one is a lot like surfing: you have to
catch the crest of the wave just right or you get slammed into the
drink, and even the ride never lasts forever. There are no
Endless Summers in the market.

This book is the behind-the-scenes story of the financial wizards
and bare-knuckled businessmen who created the conglomerates, the
glamorous multi-form companies that marked the high noon of
postWorld War II American capitalism. Covering the period from the
end of the war to 1983, the author explains why and how the
conglomerate movement originated, how it mushroomed, and what
caused its startling and rapid decline. Business historian Robert
Sobel chronicles the rise and fall of the first Masters of the
Universe in the U.S. and describes how the era gave rise to a
cadre of imaginative, bold, and often ruthless entrepreneurs who
took advantage of a buoyant stock market to create giant
enterprises, often through the exchange of overvalued paper for
real assets. He covers the likes of Royal Little (Textron), Text
Thornton (Litton Industries), James Ling (Ling-Temco-Vought),
Charles Bludhorn (Gulf & Western) and Harold Geneen (ITT). This
is a good read to put the recent boom and bust in a better
perspective.

While these men had vastly different personalities and processes,
they had a few things in common: ambition, the ability to seize
opportunities that others were too risk-averse to take, willing
bankers, and the expansive markets of the 1960s. There is
something about an expansive market that attracts and creates
Masters of the Universe. The Greek called it hubris.

The author tells a good joke to illustrate the successes and
failures of the period. It seems the young son of a
Conglomerateur brings home a stray mongrel dog. His father asks,
"How much do you think it's worth?" To which the boy replies, "At
least $30,000." The father gently tries to explain the market for
mongrel dogs, but the boy is undeterred and the next afternoon
proudly announces that he has sold the dog for $50,000. The
father is proudly flabbergasted, "You mean you found some fool
with that much money who paid you for that dog?" "Not exactly,"
the son replies, "I traded it for two $25,000 cats."

While it lasted, the conglomerate struggles were a great slugfest
to watch: the heads of giant corporations battling each other for
control of other corporations, and all of it free from the rubric
of "synergy." Nobody could pretend there was any synergy between
U.S. Steel and Marathon Oil. This was raw capitalist power at
work, not a bunch of fluffy dot.commies pretending to defy market
gravity.

History repeats itself, endlessly, because so few people study
history. The stagflation of the 1970s devalued the stock of
conglomerates and made it useless a currency to keep the schemes
afloat. The wave crashed and waiting on the horizon for the next
big wave: the LBO Masters of the 1980s.

Robert Sobel was born in 1931 and died in 1999. He was a prolific
chronicler of American business life, writing or editing more than
50 books and hundreds of articles and corporate profiles. He was a
professor of business history at Hofstra University for 43 years
and he a Ph.D. from NYU.


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

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