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

                           E U R O P E

          Wednesday, October 28, 2015, Vol. 16, No. 213

                            Headlines

B E L G I U M

AZELIS FINANCE: S&P Puts 'B' CCR on CreditWatch Negative


F R A N C E

DAKAR FINANCE: Moody's Assigns 'B2' Corp. Family Rating
OBERTHUR TECHNOLOGIES: S&P Puts 'B-' CCR on CreditWatch Positive


I R E L A N D

* IRELAND: Cerberus Named Preferred Bidder for Bad Loans


I T A L Y

* Italian RMBS Remained Stable in August 2015, Moody's Says


L U X E M B O U R G

PINNACLE HOLDCO: Moody's Affirms 'B2' CFR, Outlook Negative


N E T H E R L A N D S

INVESCO MEZZANO: Moody's Affirms Ba1 Rating on Class D Notes
METINVEST BV: Gets Debt Restructuring Offer From Investor Group
RHODIUM 1 BV: S&P Raises Rating on Class C Notes to 'B+'


R U S S I A

BANK AZIMUT: Bank of Russia Ends Provisional Administration
BANK KLIENTSKY: Bank of Russia Ends Provisional Administration
IZHEVSK: Fitch Withdraws 'B +' Long-term Issuer Default Ratings
KHAKASSIA: Fitch Affirms 'BB' Long-Term Issuer Default Ratings
KHARKOV CITY: Fitch Affirms 'C' Long-Term Issuer Default Rating

KEMEROVO REGION: Fitch Affirms 'BB-' LT Issuer Default Rating
MARI EL REPUBLIC: Fitch Affirms 'BB' LT Issuer Default Rating
MECHEL OJSC: Sberbank Expects to Reach Debt Deal By Year-End
MOSCOW REGION: Fitch Affirms 'BB +' Issuer Default Rating
NASPERS LIMITED: Fitch Says Acquisition Neutral for BB+ Rating

ROSEVROBANK: Fitch Affirms 'BB-' Long-Term Issuer Default Rating
SETTLEMENT AND SAVINGS: Bank of Russia Ends Administration


S P A I N

NPG TECHNOLOGY: Files For Insolvency Process in Madrid


U K R A I N E

MHP SA: S&P Raises Corp. Credit Rating to 'B-', Outlook Stable
UKRAINIAN AGRARIAN: S&P Raises Corp. Credit Rating to 'B-'


U N I T E D   K I N G D O M

LITTLE GYM: Parents Out of Pocket as Gym Shuts Amid Insolvency
NEW HORIZON: High Court Winds Up GBP3.1-Mil. Oil Investment Scam


X X X X X X X X

* Moody's: Relationship Between Sovereigns & NOCs Highlights Risk


                            *********


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B E L G I U M
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AZELIS FINANCE: S&P Puts 'B' CCR on CreditWatch Negative
--------------------------------------------------------
Standard & Poor's Ratings Services said it placed its 'B' long-
term corporate credit rating on Belgium-headquartered Azelis
Finance S.A., the parent holding company of chemical distributor
Azelis, on CreditWatch with negative implications.

S&P also placed on CreditWatch negative its 'B' issue ratings on
the EUR180 million first-lien term loan and EUR40 million
revolving credit facility, and S&P's 'CCC+' issue rating on the
EUR60 million second-lien term loan.  The recovery ratings on
these facilities are unchanged at '4' and '6', respectively.

The CreditWatch placement follows Azelis' announcement that it
intends to acquire U.S.-based distributor Koda Distribution Group.
S&P recognizes that the acquisition could significantly enlarge
the scale and scope of Azelis, and bring important client and
supplier synergies.  At the same time, S&P considers that there is
a risk of releveraging beyond Standard & Poor's-adjusted debt to
EBITDA of 5.0x-6.5x and funds from operations interest coverage of
about 3x, which S&P views as commensurate with a 'B' rating.

The CreditWatch placement reflects the possibility that S&P could
downgrade Azelis Finance to 'B-'.  S&P could also downgrade Azelis
Finance further to the 'CCC' category if it assessed financial
leverage as unsustainable after the transaction, or if Azelis
Finance's liquidity weakened.

S&P currently anticipates that the transaction could close by the
end of the year.  S&P therefore expects to resolve the CreditWatch
placement within a similar timeframe.



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F R A N C E
===========


DAKAR FINANCE: Moody's Assigns 'B2' Corp. Family Rating
-------------------------------------------------------
Moody's Investors Service has assigned a corporate family rating
of B2 and B1-PD probability of default rating to Dakar Finance
S.A., a holding company of the Autodistribution group.
Concurrently, Moody's has assigned a (P)B3 instrument rating to
the proposed EUR237 million Senior Pay-If-You-Can Notes due 2020
to be issued by Dakar Finance S.A. in support of the acquisition
of Autodistribution by funds controlled by Bain Capital, affirmed
Autodis S.A.'s B2 instrument rating of the EUR300 million senior
secured notes due 2019, and withdraws the B1 CFR and Ba3-PD PDR of
Autodis Group S.A.S.  The outlook on all ratings is stable.  The
transaction is expected to close end of Nov. 2015 subject to
approval by competition authorities.  The proceeds from the notes
issuance will be held in escrow until that date.

The proceeds from the new Senior Pay-If-You-Can Notes will be used
to fund a portion of the purchase price.  Cash on balance sheet
will be used to repay EUR30 million of the existing EUR300 million
senior secured notes and EUR5 million of Contingent Value
Instruments. The remaining EUR270 million senior secured notes are
currently portable, provided consolidated leverage be less than
3.75x.

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

RATINGS RATIONALE

The B2 CFR rating reflects Autodistribution's (1) leading position
in the French automotive aftermarket, which is characterized by
higher customer loyalty and less cyclicality compared to the
automotive sector; (2) relative size compared to other independent
players, manifesting itself in a dense distribution network and
leading to economies of scale; (3) fragmented customer base,
consisting of local distributors and garages; (4) track record of
improving cost efficiencies and operational performance, most
recently driven by the integration of ACR.

The B2 CFR rating also takes into account the company's (1)
increased leverage pro-forma for the Senior Pay-If-You-Can Notes
issued to partly finance the acquisition by Bain Capital; (2) the
large exposure to France which represents about 90% of the
company's sales in 2014; (3) the intense competition in the sector
characterized by expected weak total market growth; (4) the
company's modest size compared to some of its large automotive
part suppliers; and (5) risks relating to potential further debt-
funded M&A activity in order to grow revenue through acquisitions.

With an expected Moody's-adjusted Debt/EBITDA ratio of 5.8x at
December 2015, Autodistribution is weakly positioned in the B2 CFR
category.  The Moody's adjusted leverage ratio includes the EUR237
million Senior Pay-If-You-Can Notes, for which interest is
expected to be paid in cash, subject to the restricted payment
test of the senior secured notes and cash of EUR35 million at
Autodis S.A..  Moody's anticipates the company will continue to
achieve modest EBITDA growth in a stable revenue environment
through EBITDA margin improvements to levels more in line with its
industry peers and top-line growth mainly driven by the Light
Vehicle segment and ACR divisions.

For the next 12 to 18 months, Moody's expects free cash flow
generation to remain weak, as a result of the increased interest
costs (mitigated by the fact that the proceeds of the EUR237
million Senior Pay-If-You-Can Notes include EUR20 million of pre-
funded cash interest coupons, working capital cash outflow and c.
EUR12 million capex in FY 2016 to support the company's Logisteo
central warehouse improvement.

Given the fragmented nature of the industry the company may also
grow via bolt-on acquisitions, which may be financed by drawings
under its EUR40 million super-senior revolving credit facility
(RCF).

Moody's considers Autodistribution's near-term liquidity position
as adequate.  Pro-forma for the transaction, the company's
liquidity position is supported by an expected cash balance of
EUR28 million at closing, a EUR20 million cash overfunding at the
holdco level to pay for the first Senior Pay-If-You-Can Notes cash
interest coupons, and a fully undrawn EUR40 million RCF.

The B2 instrument rating on the senior secured notes, in line with
the CFR, reflects the balance of (1) downward pressure from the
limited amount of guarantees from operational entities for the
senior secured notes, and Moody's view that the super-senior RCF
and operating liabilities (mainly trade payables and operating
leases) rank ahead of the notes in the capital structure, offset
by (2) the upward pressure from the Senior Pay-If-You-Can Notes
ranking junior to the senior secured facilities.  The (P)B3
instrument rating for the Senior Pay-If-You-Can Notes reflects its
subordination to prior ranking senior secured debt.

The RCF benefits from a springing financial maintenance covenant,
set at 0.7x super senior net leverage when the RCF is drawn.  A
breach of this maintenance covenant triggers a draw-stop, but not
an event of default.

The full group structure includes certain Preferred Equity
Certificates.  Those entering the restricted group have terms that
qualify them for equity-equivalent treatment according to our
published methodology.

Rating Outlook

The stable outlook reflects Moody's view that the company's
operating performance would continue to improve in the next 12-18
months, driven by low single digit revenue growth and ongoing
margin improvements.  Profitability enhancement is expected to be
driven by ongoing productivity efforts across the company,
including through higher investments to enhance its distribution
network and IT systems.

What Could Change the Rating -- UP

Positive pressure on the ratings, could arise if Moody's-adjusted
gross Debt/EBITDA ratio decreases sustainably below 5.0x and cash
flow generation improves with RCF/Debt increasing towards 10% (RCF
defined as Retained Cash Flow).  Qualitatively, Moody's would
consider an upgrade if the company continues to increase its
geographical diversification.

What Could Change the Rating -- DOWN

Negative rating pressure could arise if Moody's-adjusted gross
Debt/EBITDA ratio increases above 6.0x, free cash flow generation
falls towards zero (pro-forma for the EUR20 million overfunding)
or liquidity weakens.  Any substantial debt-financed acquisitions
could also have a negative effect on the ratings.

Moody's has withdrawn the CFR and PDR of Autodis Group S.A.S for
its own business reasons.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global
Distribution & Supply Chain Services published in November 2011.

Autodistribution, founded in 1962, is one of the 2 leading
distributors of aftermarket parts for light vehicles and trucks in
the independent automotive aftermarket in France.  The company
operates a vertically integrated wholesale distribution structure,
including a central purchasing function, and an owned distribution
network.  The company generated LTM revenue of EUR1,212 million in
August 2015, through its network of 38 wholly-owned and 42
affiliated independent distributors in France, operating together
on 492 distribution sites and around 3,200 affiliated garages in
France.  90% of Aug-15 LTM sales were generated in France, while
Poland represented 10%.


OBERTHUR TECHNOLOGIES: S&P Puts 'B-' CCR on CreditWatch Positive
----------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B-' long-term
corporate credit rating on French smart card Provider Oberthur
Technologies Holding SAS on CreditWatch with positive
implications.

At the same time, S&P affirmed its 'B-' issue rating on Oberthur's
senior secured debt and S&P's 'CCC' issue rating on its senior
unsecured notes.  The respective recovery ratings of '3' and '6'
on this debt remain unchanged.

The CreditWatch placement reflects S&P's view that, if successful,
the IPO and Oberthur's potential ensuing debt reduction could
improve S&P's assessment of the company's financial risk profile.

In particular, S&P expects the Standard & Poor's-adjusted debt-to-
EBITDA ratio for Oberthur to decline to 5x or lower, compared with
more than 10x at year-end 2014.  S&P bases its projection on the
company's announced intention to use IPO proceeds of at least
EUR500 million to redeem the EUR190 million senior secured notes
and most of the reported shareholder loans, and to convert a
EUR151 million shareholder loan into equity.  Furthermore, because
S&P anticipates that all equity will be common equity after the
IPO is completed, it would no longer apply its EUR355 million debt
adjustment for the company's interest-free preferred equity
certificates.  However, as S&P continues to assume that Oberthur's
financial sponsor will retain a stake of more than 40% in the
company, S&P do not expect to apply any adjustment for surplus
cash, in accordance with its methodology.

Credit ratios, notably coverage ratios, and cash flow generation,
will also benefit from a reduction in interest expenses.

In S&P's base case, it assumes:

   -- Mid-single-digit annual revenue growth, supported by
      continued positive developments in the payment segment.
      S&P expects solid growth for payment smart cards in the
      U.S. but also in other markets; flat revenues in the
      telecom segment, with price declines in traditional SIM
      cards offsetting volume growth.

   -- Non-recurring costs of EUR26 million in 2015, after EUR50
      million in 2014.

   -- The adjusted EBITDA margin to widen in 2015 on lower
      restructuring costs and cost savings of EUR15 million-EUR20
      million from 2014 restructuring.  Gradual improvement in
      following years once restructuring activities are
      completed, and supported by another EUR10 million to EUR15
      million of cost savings in 2016.

   -- Negative working capital in 2015 caused by the inventory
      buildup of smart cards in the U.S.

   -- Annual capital expenditures (capex) of up to EUR65 million.

   -- IPO proceeds of about EUR500 million, primarily applied
      toward debt reduction.

   -- Conversion of the EUR151 million shareholder loan into
      equity.

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

   -- Adjusted debt to EBITDA of 5x or below in 2015.
   -- Funds from operations (FFO) to debt at about 10% or more in
      2015; and
   -- Modestly negative FOCF in 2015 before rebounding in 2016,
      notably on lower interest expenses.

S&P aims to resolve the CreditWatch placement after completion of
the IPO, which S&P understands could occur before the end of 2015.
S&P could raise its long-term rating on Oberthur by several
notches post IPO.  The CreditWatch resolution will depend on the
net proceeds from the IPO, the capital structure after completion
of the IPO (after repayment or equity conversion of shareholder
loans and noncommon equity), free cash flow generation prospects,
and the ownership structure (including the residual share of
Oberthur's stock owned by the financial sponsor and its exit
strategy).



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I R E L A N D
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* IRELAND: Cerberus Named Preferred Bidder for Bad Loans
--------------------------------------------------------
Joe Brennan at Bloomberg News reports that a unit of Cerberus
Capital has been chosen as the preferred bidder for bad loans with
a face value of EUR6.3 billion (US$7 billion) by Ireland's
National Asset Management Agency.

According to Bloomberg, NAMA Chairman Frank Daly said in a
statement that the U.S. private equity firm's bid meets NAMA's
"expectation of the proceeds that could have been realized from
the management and sale of over 1,900 individual assets."

No sale price was disclosed, Bloomberg notes.

The sale is NAMA's largest by face value since it was set up in
2009 to take over about EUR74 billion of risky commercial real-
estate assets from the nation's lenders, Bloomberg states.



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


* Italian RMBS Remained Stable in August 2015, Moody's Says
-----------------------------------------------------------
The delinquencies and defaults of the Italian residential
mortgage-backed securities (RMBS) market remained relatively
stable in the three-month period ended August 2015, according to
the latest indices published by Moody's Investors Service.

In August 2015, the 90+ day delinquency index over the current
pool balance ended at 1.7%, and the 60+ day delinquency index over
the current pool balance reached 2.2%, both remaining stable
compared to three months earlier.

The index of cumulative defaults stabilized at 4.5% of the
original pool balance in August 2015, in line with May 2015.

The prepayment rate index increased to 4.7% in August 2015 from
3.5% in May 2015, reaching a record high since mid-2012.

As of August 2015, the reserve funds of 26 transactions, 10 of
which are fully drawn, were below their target levels.

On July 10, 2015, Moody's upgraded the ratings on four notes and
affirmed the rating on four notes in two Italian RMBS
transactions: Capital Mortgage S.r.l. (BIPCA Cordusio RMBS) and
Sestante Finance S.r.l. - Series 2006.

On July 16, 2015, Moody's upgraded the ratings on three notes in
three Italian RMBS transactions: Dominato Leonense S.r.l., Fanes
S.r.l. - Series 2014 and Media Finance S.r.l. - Series 4.

Moody's outlook for Italy is stable.  The rating agency expects
that the Italian GDP will increase marginally by 0.7% in 2015 (see
"Credit Opinion: Italy, Government of", 23 September 2015).

As of Aug. 2015, 108 transactions were outstanding, with a total
pool balance of EUR63.07 billion.



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


PINNACLE HOLDCO: Moody's Affirms 'B2' CFR, Outlook Negative
-----------------------------------------------------------
Moody's Investors Service has changed Pinnacle Holdco S.a.r.l.'s
("Paradigm") outlook to negative, from stable, and has affirmed
the company's B2 corporate family rating, B2-PD probability of
default rating, and B1 and Caa1 ratings on the company's first-
and second-lien credit facilities, respectively.

RATINGS RATIONALE

The change to a negative outlook reflects the energy industry's
prolonged challenging operating environment, which Moody's
believes will have negative implications for Paradigm's revenues,
liquidity, and leverage.  While maintenance and support contracts
with largely "super-major" and leading national oil and gas
customers provide a measure of revenue stability, pronounced
weakness in the sale of new software licenses because of oil-price
uncertainty has caused an overall contraction in Paradigm's
revenues, which Moody's sees as falling by close to 13% this year,
to US$200 million.  With energy prices not expected to stabilize
until the latter half of 2016, Moody's expects a more moderate
revenue falloff next year, with modest revenue gains not coming
until 2017.

As a result of top-line weakness, Paradigm's otherwise good cash-
flow-generation capability will be reduced over the intermediate
term, with FCF possibly nearing breakeven next year.
Nevertheless, Moody's views the company's liquidity as adequate,
with cash balances healthy relative to Paradigm's small scale, and
an undrawn US$40 million revolver.  Moody's recognizes
management's successful attempts, implemented this year, to keep
costs in line with the reduction in revenues, enabling the company
to maintain fairly stable EBITDA margins, in the low 30%s.
Moody's expects that the absolute decline in profits, however,
will cause Paradigm's debt-to-EBITDA leverage (including Moody's
standard adjustments) to drift toward or even above 7.0 times
during the next twelve months, pressuring the rating.  Moreover,
incremental streamlining of the company's already-lean cost
structure may be difficult to achieve going forward, and an
extended, depressed energy pricing environment could lead to
critical operating and liquidity challenges.

The ratings could be pressured by a sustained deterioration in
capital spending by oil and gas exploration and production
players, leading to continued, significant declines in license
revenues.  The ratings could be downgraded if debt-to-EBITDA is
expected to remain above 7.0 times for an extended period, if free
cash flow approaches breakeven, or if the company's access to the
revolver appears threatened.  The ratings could be upgraded if
leverage were sustained below 4.5 times, an improvement that,
given the minimal required amortization of Paradigm's debt, would
come mostly from revenue and EBTIDA growth.  However, the current,
weak pricing environment suggests that meaningful operating growth
is unlikely over the near term.

These actions were taken:

Issuer: Pinnacle Holdco S.a.r.l

  Corporate Family Rating, Affirmed B2

  Probability of Default Rating, Affirmed B2-PD

  US$380 million senior secured, first-lien bank credit
    facilities, maturing July 2017 and 2019, Affirmed B1

  US$95 million senior secured, second lien term loan, maturing
    July 2020, Affirmed Caa1

  Outlook changed to negative, from stable

Pinnacle Holdco S.a.r.l is the holding company and debt issuing
entity set up, in mid-2012, by private equity firms Apax Partners
and JMI Equity to acquire Paradigm, Ltd., a leading, multi-
national provider of specialized sub-surface analytics software
for the oil and gas industry's exploration and extraction efforts.
Moody's projects Paradigm's 2015 revenues at about $200 million, a
nearly thirteen percent decline from 2014.

The principal methodology used in these ratings was Global
Software Industry published in October 2012.



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


INVESCO MEZZANO: Moody's Affirms Ba1 Rating on Class D Notes
------------------------------------------------------------
Moody's Investors Service announced that it has taken rating
actions on these classes of notes issued by Invesco Mezzano B.V.:

  EUR254,500,000 (Current Balance: EUR129.2 mil.) Class A Senior
   Floating Rate Notes due 2024, Upgraded to Aaa (sf); previously
   on April 4, 2014, Affirmed Aa1 (sf)

  EUR10,500,000 Class B Deferrable Interest Floating Rate Notes
   due 2024, Upgraded to Aa1 (sf); previously on April 4, 2014,
   Upgraded to Aa3 (sf)

  EUR19,250,000 Class C Deferrable Interest Floating Rate Notes
   due 2024, Upgraded to A3 (sf); previously on April 4, 2014,
   Upgraded to Baa1 (sf)

  EUR10,000,000 Class D Deferrable Interest Floating Rate Notes
   due 2024, Affirmed Ba1 (sf); previously on April 4, 2014,
   Upgraded to Ba1 (sf)

  EUR 16,750,000 (Current Balance: EUR13.1 mil.) Class E
   Deferrable Interest Floating Rate Notes due 2024, Affirmed
   Ba3 (sf); previously on April 4, 2014, Upgraded to Ba3 (sf)

Invesco Mezzano B.V., issued in October 2007, is a collateralized
loan obligation (CLO) backed by a portfolio of mostly high-yield
senior secured European loans managed by Invesco Asset Management
Limited.  The transaction's reinvestment period ended in November
2013.

RATINGS RATIONALE

According to Moody's, the rating actions taken on the notes are
the result of deleveraging on the last two payment dates.

Class A notes have paid down by approximately EUR98.4 million
(37.7% of closing balance) on the November 2014 and May 2015
payment dates, as a result of which over-collateralization (OC)
ratios of senior classes of rated notes have increased
significantly.  As per the trustee report dated August 2015, Class
A, Class B, Class C, Class D, and Class E OC ratios are reported
at 147.31%, 136.24%, 119.74%, 112.65%, and 104.57% compared to
August 2014 levels of 129.61%, 123.90%, 114.63%, 110.35%, and
104.96%, respectively.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.  In its base
case, Moody's analyzed the underlying collateral pool as having a
performing par and principal proceeds of EUR193.04 million, a
weighted average default probability of 20.71% (consistent with a
WARF of 2768 over a weighted average life of 4.85 years), a
weighted average recovery rate upon default of 45.91% for an Aaa
liability target rating, a diversity score of 27 and a weighted
average spread of 3.88%.

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.  Moody's generally applies recovery rates
for CLO securities as published in "Moody's Approach to Rating SF
CDOS".  In some cases, alternative recovery assumptions may be
considered based on the specifics of the analysis of the CLO
transaction.  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.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in September 2015.

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

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

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 behavior and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties because of embedded ambiguities.

Additional uncertainty about performance is due to:

  1) Portfolio amortization: The main source of uncertainty in
this transaction is the pace of amortization of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortization could accelerate as a consequence of high loan
prepayment levels or collateral sales 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.

  2) Around 14% of the collateral pool consists of debt
obligations whose credit quality Moody's has assessed by using
credit estimates.  As part of its base case, Moody's has stressed
large concentrations of single obligors bearing a credit estimate
as described in "Updated Approach to the Usage of Credit Estimates
in Rated Transactions," published in October 2009

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


METINVEST BV: Gets Debt Restructuring Offer From Investor Group
---------------------------------------------------------------
Luca Casiraghi at Bloomberg News reports that Metinvest BV
received a debt restructuring proposal from a group of investors
holding more than half of its US$1.1 billion of bonds.

According to Bloomberg, Andriy Bondarenko, a spokesman for
Metinvest in Geneva, said the steelmaker is considering the
proposal and hasn't yet submitted its own plan.

The bondholders, including Ashmore, proposed extending notes
dueGroup Plc over the next three years into a single maturity
after 2018, Bloomberg relays, citing two people familiar with the
matter.

One of the people and another person with knowledge of the
situation said Metinvest' management and shareholders may resist
the proposal and instead seek to write down some of the debt,
Bloomberg notes.

Metinvest, Bloomberg says, needs to restructure borrowings after
almost all its facilities in war-torn eastern Ukraine were damaged
and slumping commodity prices erode earnings.

The company said the bondholders formed a committee and hired to
advise them last month, Bloomberg recounts.

PJT was created from the combination of an advisory boutique
headed by Paul J. Taubman and Blackstone Group LP's mergers and
restructuring unit this month, Bloomberg discloses.

Roman Topolyuk, an analyst at Concorde Capital Creditors, as cited
by Bloomberg, said the company may struggle to find common ground.

"They still have time until January to find a solution, but things
are getting worse for the company as commodities prices drop,"
Bloomberg quotes Mr. Topolyuk as saying.

Metinvest BV is Ukraine's largest steelmaker.


RHODIUM 1 BV: S&P Raises Rating on Class C Notes to 'B+'
--------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Rhodium 1 B.V.'s class B and C notes.  At the same time, S&P has
affirmed its rating on the class D notes.

The rating actions follow S&P's performance review, which included
its credit and cash flow analysis and the application of its
relevant criteria.  S&P used data from the August 2015 payment
date report and took into account recent transaction developments.

Due to structural deleveraging, available credit enhancement has
increased for the class B and C notes.  The class B notes, the
most senior notes outstanding, have amortized by EUR13.98 million
since S&P's previous review and have a note factor (the current
notional amount divided by the notional amount at closing) of
18.8%.

The proportion of assets rated in the 'CCC' category ('CCC+',
'CCC', and 'CCC-') has decreased to 8.37% from 13.95% since S&P's
previous review.  The positive credit migration, coupled with a
lower portfolio weighted-average maturity, has resulted in
slightly lower scenario default rates at the assigned rating
levels (the minimum level of portfolio defaults S&P expects a
tranche to withstand at a specific rating level) calculated by its
CDO Evaluator model.  The transaction's overcollateralization par
value ratios are above the documented trigger levels with
increased buffers due to the class B notes' deleveraging.  The
reported weighted-average spread earned on the collateral pool is
2.29%.

As the portfolio continues to deleverage, the obligor
concentration levels have increased, with only 15 distinct
obligors in the current portfolio from 20 at S&P's previous
review.  S&P has addressed the concentration risk in its analysis
by applying S&P's largest obligor default test, a supplemental
stress test S&P outlines in its corporate cash flow collateralized
debt obligations (CDOs).  This assesses whether a CDO tranche has
sufficient credit enhancement to withstand specified combinations
of underlying asset defaults, based on the ratings on the
underlying assets.  The test assumes a flat recovery of 30% for an
original senior-most tranche and 0% for an original subordinated
tranche.  Furthermore, the correlation assumptions embedded in
S&P's CDO Evaluator model also address concentration risk.

S&P conducted its cash flow analysis to determine the break-even
default rates (BDRs) at each rating level by applying its
corporate cash flow criteria and its criteria for CDOs of asset-
backed securities (ABS).  The BDR represents S&P's estimate of the
maximum level of gross defaults, based on its stress assumptions,
that a tranche can withstand and still fully repay the
noteholders.

Due to the class B notes' amortization and the lower scenario
default rates, S&P considers the increased available credit
enhancement for the class B and C notes to be commensurate with
higher ratings than those previously assigned.  S&P has therefore
raised to 'AA- (sf)' from 'A- (sf)' its rating on the class B
notes and to 'B+ (sf)' from 'CCC+ (sf)' its rating on the class C
notes.

S&P's cash flow analysis indicates that the available credit
enhancement for the class D notes is commensurate with the
currently assigned rating.  S&P has therefore affirmed its
'CCC-(sf)' rating on the class D notes.

Rhodium 1 is a static cash flow CDO of a portfolio of mainly
mortgage-backed securities.

RATINGS LIST

Class                 Rating             Rating
                      To                 From

Rhodium 1 B.V.
EUR304.4 Million Asset-Backed Floating-Rate Notes

Ratings Raised

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

Rating Affirmed

D                     CCC- (sf)



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


BANK AZIMUT: Bank of Russia Ends Provisional Administration
-----------------------------------------------------------
Due to the ruling of the Arbitration court of the city of Moscow
(case No. A40-128272/2015), dated October 16, 2015, on finding
insolvent (bankrupt) of the Credit Institution JOINT-STOCK
COMMERCIAL BANK AZIMUT, PJSC, and the appointment of a liquidator,
in compliance with Clause 3 of Article 18927 of the Federal Law
"On the Insolvency (Bankruptcy)", the Bank of Russia took a
decision (Order No. OD-2897, dated October 23, 2015) to terminate
from October 23, 2015, the provisional administration of BANK
AZIMUT appointed by Bank of Russia Order No. OD-1397, dated June
19, 2015, "On Appointing Provisional Administration to Manage the
Moscow-based Credit Institution JOINT-STOCK COMMERCIAL BANK
AZIMUT, public joint-stock company, or JSCB AZIMUT PJSC Due to the
Revocation of its Banking Licence".


BANK KLIENTSKY: Bank of Russia Ends Provisional Administration
--------------------------------------------------------------
Due to the ruling of the Arbitration court of the city of Moscow
(case No. A40-133487/15), dated October 14, 2015, on finding
insolvent (bankrupt) Bank Klientsky, JSC, and the appointment of a
liquidator, in compliance with Clause 3 of Article 18927 of the
Federal Law "On the Insolvency (Bankruptcy)", the Bank of Russia
took a decision (Order No. OD-2885, dated October 22, 2015) to
terminate from October 23, 2015, the provisional administration of
Bank Klientsky appointed by Bank of Russia Order No. OD-1546,
dated July 3, 2015, "On Appointing Provisional Administration to
Manage the Moscow-based Credit Institution Bank Klientsky, Joint-
Stock Company, or JSC Bank Klientsky Due to the Revocation of its
Banking Licence".


IZHEVSK: Fitch Withdraws 'B +' Long-term Issuer Default Ratings
---------------------------------------------------------------
Fitch Ratings withdrew the ratings of Izhevsk, Russia: long-term
issuer default ratings ("IDR") in foreign and national currency
'B +' / forecast "Stable" and National Long-term rating of 'A
(rus)'/ forecast "Stable", as well as short-term foreign currency
IDR at 'B'.

Key Rating Factors

Ratings withdrawn because the city decided to stop participating
in the rating process. Thus, Fitch will no longer have sufficient
information to maintain its ratings. Accordingly, Fitch will no
longer provide ratings Izhevsk and does not perform analysis on
it. Factors that may affect the rating in the future is not
applicable.


KHAKASSIA: Fitch Affirms 'BB' Long-Term Issuer Default Ratings
--------------------------------------------------------------
Fitch Ratings has affirmed Russian Republic of Khakassia's Long-
term foreign and local currency Issuer Default Ratings (IDRs) at
'BB', Short-term foreign currency IDR at 'B' and National Long-
term rating at 'AA-(rus)'. The Outlooks on the Long-term IDRs and
National Long-term rating are Negative. The republic's outstanding
senior unsecured domestic bonds have been affirmed at 'BB' and
'AA-(rus)'. The affirmation reflects Fitch's unchanged baseline
scenario regarding Khakassia's weak budgetary performance and
rising debt. The Negative Outlook reflects the republic's
continuously large budget deficit and its inability to restore its
current balance to surplus over the medium-term.

KEY RATING DRIVERS

The ratings reflect a weak institutional framework for Russian
subnationals, Khakassia's low operating balance and growing direct
risk accompanied by high refinancing pressure. The ratings also
take into account the slowdown of the national economy, which
could place a strain on the republic's tax base. Fitch expects the
republic's current balance to remain negative in 2015-2017 (2014:
-4.8%) as a slightly improving operating balance will not be
sufficient to cover increased interest payments. We expect
Khakassia's operating margin to be a low 2%-4% over the medium
term (2014: negative 0.6%), supported by increased revenues from
the power generation sector and higher profits of export-oriented
taxpayers buoyed by a weaker rouble. Fitch forecasts deficit
before debt variation to average a substantial 12% of total
revenue in 2015-2017 (2014: 13%) as the region's capacity to scale
back its capex is low.

"We project that more than 60% of capex (2014: 68%) are rigid
during 2015-2017 as they will be funded by earmarked transfers
from the federal budget. Low manoeuver on capex, coupled with
rigid operating expenditure, result in Khakassia's limited budget
flexibility. The on-going deficit will lead to continued direct
risk growth. We expect Khakassia's direct risk to approach 90% of
current revenue by end-2017, up from 61% in 2014. In Fitch's view
the republic is exposed to significant refinancing pressure. In
2015-2016, Khakassia faces RUB7.6 billion maturing debt (54% of
direct risk as of 1 September 2015). Fitch expects most maturities
to be financed by market debt (bank loans and bonds)," Fitch said.

In Fitch's view, the republic has adequate access to market
funding that mitigates refinancing risks and insufficient coverage
of interest payments by the operating balance. However, increased
reliance on market debt exposes the republic to volatile interest
rates and may put further stress on its current balance. During
8M15 Khakassia's direct risk profile shifted towards market debt
due to reduced support from the federal budget, a move which Fitch
views as credit-negative. As of 1 September 2015 subsidized budget
loans were RUB1.6 billion, down from RUB3 billion or 11% of the
region's direct risk (end-2014: 28%). Khakassia's economy is
concentrated in the hydro-power generation, mining and non-ferrous
metallurgy sectors. The 10 largest taxpayers contributed 44.5% to
the republic's tax revenue in 2014 (2013: 43.6%). Taxes provided
71% of operating revenue in 2014, which makes the region's budget
prone to volatility. Fitch forecasts Russia's national economy to
contract 4% in 2015, which could negatively affect Khakassia's tax
base.

RATING SENSITIVITIES

Inability to restore a positive current balance and to narrow the
budget deficit to below 10% of total revenue could lead to a
downgrade.


KHARKOV CITY: Fitch Affirms 'C' Long-Term Issuer Default Rating
---------------------------------------------------------------
Fitch Ratings has affirmed the Ukrainian City of Kharkov's Long-
term foreign currency Issuer Default Rating (IDR) at 'C', Long-
term local current IDR at 'CCC' and Short-term foreign currency
IDR at 'C'. Fitch has also affirmed the city's National Long-term
rating at 'A+(ukr)' with a Negative Outlook. The ratings are
constrained by the ratings of Ukraine (Restricted Default/CCC)
that is in default on its sovereign eurobond obligations.

KEY RATING DRIVERS

In Fitch's assessment, the weak institutional framework governing
Ukrainian subnationals remains a constraint on the city's ratings.
The framework is characterized by frequent changes to allocation
of revenue and expenditure assignment and a lack of clarity and
sophistication. This hinders the long-term development and budget
planning of local and regional governments in Ukraine. The City of
Kharkov is currently free from external debt obligations. In our
baseline scenario Fitch projects the city's budgetary performance
to remain satisfactory in 2015-2017 with an operating balance at
10% of operating revenue (2014: 9.8%) and a close to zero budget
deficit (2014: 4.4%). The overall weakness of the national debt
capital markets limits the city's access to funding, in turn
allowing the city to maintain a balanced budget. Fiscal
performance may be hindered over the medium term by the low
predictability of fiscal changes and a volatile economy in
Ukraine. In 2015 the central government made significant
amendments to the Ukraine's budget and tax codes, which could
sharply increase 2015 operating revenue. Fitch also expects the
city's tax capacity over the medium term to be negatively affected
by Ukraine's recession. Fitch has revised its forecasts for
Ukraine to a 9% contraction in 2015 compared with a previously
expected 5% decline. Fitch expects the city's net overall risk to
remain low at 10% of current revenue (2014: 12%) in 2015-2017, due
to forecasted balanced budgets. In April 2015, Kharkov fully
repaid its outstanding debt (2014: UAH294 million) and Fitch
expects no new borrowings up to year-end. The city's liquidity
position improved with accumulated cash balance doubling to UAH1
billion at September 1, 2015. Kharkov's exposure to contingent
risk has increased as public sector debt almost doubled during
2011-2014 and peaked at UAH417 million by end-2014. Most of the
city's public sector entities (PSEs) are loss-making and depend on
subsidies to sustain operations. In 2014, compensating subsidies
and capital injections granted to PSEs totalled UAH285 million, or
6% of the city's operating revenue. It should be noted that
disclosure of PSE's performance in 2015 is limited and our
assessment is therefore based on historical data.

RATING SENSITIVITIES

The city's ratings are constrained by the sovereign. A downgrade
on the sovereign's Long-term local currency IDR would lead to a
corresponding action on the city's IDR. In the absence of a
sovereign downgrade, significant deterioration of Kharkov's credit
profile could also lead to a negative rating action. A sovereign
upgrade would be reflected in the City of Kharkov's ratings.
However, the rating will likely remain low, given high country
risks and Ukraine's 'CCC' Country Ceiling.


KEMEROVO REGION: Fitch Affirms 'BB-' LT Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has affirmed the Russian Kemerovo Region's Long-term
foreign and local currency Issuer Default Ratings (IDRs) at 'BB-'
and its Short-term foreign currency IDR at 'B'. The agency has
also affirmed the region's National Long-term rating at 'A+(rus)'.
The Outlooks on the Long-term ratings are Stable. Fitch has also
affirmed the region's senior unsecured debt at Long-term local
currency 'BB-' and at National Long-term 'A+(rus)'. The
affirmation reflects Fitch's unchanged base line scenario
regarding the region's marginally positive operating balance and
gradually growing direct risk, in line with the region's ratings.

KEY RATING DRIVERS

The 'BB-' rating reflects the region's volatile budgetary
performance and high deficit before debt in 2012-2014 that led to
rapid debt increase albeit from a low base. The rating also
reflects the region's undiversified economy with a developed tax
base that is exposed to the economic cycle, weak institutional
framework and our expectation of a stagnant local economy
following the negative national trend. Positively, the rating
takes into account Kemerovo's low contingent risk. Fitch expects
the region's operating balance to consolidate at low positive
values during 2015-2017, but the current balance to remain
negative. Budgetary performance will be underpinned by growth of
tax proceeds due to improved financials of mining and
metallurgical companies, which are the largest taxpayers in the
region. In 2014, the operating balance returned to positive
territory, driven by a 50% increase in transfers and modest
recovery of corporate income tax. The latter was driven by the
improving earnings of local exporters following the stabilization
of prices of key commodities and the depreciation of the rouble.
Fitch expects Kemerovo's direct risk to grow to 70%-75% of current
revenue by end-2017, which is still consistent with the region's
ratings.

Fitch also expects the deficit before debt to narrow due to cuts
in capex limiting debt growth. The wide deficit before debt during
2012-2014 had resulted in a rapid rise in direct risk to RUB51
billion (57% of current revenue) at end-2014, from RUB19 billion
(21%) in 2011. Immediate refinancing risk is moderate; as  October
1 the region's debt comprised 37% subsidized budget loans, which
are likely to be rolled over by the federal government. Another
48% direct risk is three-year bank loans. The maturity profile of
these budget and bank loans is distributed between 2015 and 2018,
with moderate concentration in 2018. The region's
obligations/liabilities also include a long-term bank loan from
Vnesheconombank (VEB: BBB-/Negative/F3), which represented 12% of
direct risk as of October 1, 2015. VEB extended credit facilities
to private companies in the 1990s, which Kemerovo assumed as an
aggregated loan in the mid-2000s. The loan is denominated in US
dollars and exposes the region to unhedged foreign-currency risk.
The risk is, however, mitigated by a low 1% annual interest rate
and the long maturity to 1 January 2035, which takes the immediate
pressure off the region's debt servicing burden. Kemerovo has low
contingent risk stemming from public sector entities' financial
debt and issued guarantees. In late 2011, the region imposed a
moratorium on new guarantees issuance and as of 1 October 2015 the
region had no outstanding guarantees. The region has a
concentrated economy weighted towards coal mining and ferrous
metallurgy. This provides an extensive tax base for the region's
budget, accounting for 79% of operating revenue in 2014. However,
this also means a large portion of the region's tax revenues
depends on companies' profits, resulting in high revenue
volatility through the economic cycle given its less diversified
profile. Kemerovo demonstrated close to zero GRP growth in real
terms in 2014, following the deterioration of the national
economic environment.

RATING SENSITIVITIES

An improvement in the operating balance to 6%-8% of operating
revenue and maintenance of a debt payback ratio (direct risk to
current balance) below 10 years on a sustainable base could lead
to an upgrade. The inability to maintain a positive operating
balance on a sustained basis or an increase in direct risk above
90% of current revenue could lead to a downgrade.


MARI EL REPUBLIC: Fitch Affirms 'BB' LT Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has affirmed the Russian Mari El Republic's Long-
term foreign and local currency Issuer Default Ratings (IDRs) at
'BB', with Stable Outlooks, and its Short-term foreign currency
IDR at 'B'. The agency has also affirmed the republic's National
Long-term rating at 'AA-(rus)' with Stable Outlook. Mari El's
outstanding senior unsecured domestic bonds have been affirmed at
'BB' and 'AA-(rus)'. The affirmation reflects Fitch's unchanged
baseline scenario regarding the republic's ability to record
satisfactory fiscal performance and maintain moderate direct risk
commensurate with its ratings in the medium term.

KEY RATING DRIVERS

The 'BB' rating reflects the republic's moderate direct risk with
limited exposure to refinancing risk and satisfactory fiscal
performance. The ratings also factor the republic's modest
economic profile amid a deteriorating macroeconomic environment in
Russia. Fitch expects Mari El to continue posting stable fiscal
performance in 2015-2017, with an operating surplus of 8%-9%
(2014: 7%). This will be driven by prudent management aimed at
cost control and an expected steady increase in operating revenue
of 5% over the medium term. The latter would be driven by modest
growth of tax revenue from processing industries. The republic's
interim deficit before debt variation narrowed to 1.4% of total
revenue by end-8M15 from 9.5% a year earlier.

"We expect the full year deficit to remain below 10% of total
revenue over the medium term (2014: 9.6%), driven by an expected
reduction in capex to 13% of total spending (2010-2014: average
22%). Fitch expects Mari El's direct risk to increase up to
RUB13bn in 2017, driven by budgeted deficits, while in relative
terms to stabilize at below 60% of current revenue in 2015-2017
(2014: 47%). The republic's direct risk increased to RUB10.7
billion in 2014 from RUB8.7 billion a year earlier. The region's
debt profile shifted last year to include a larger proportion of
budget loans of 42% of debt stock (2013: 13%). Fitch does not
expect the proportion of direct debt (bank loans and bonds) in the
republic's debt stock to exceed 40% of current revenue by 2017,
partially offsetting increased costs of borrowing due to interest
rate volatility. The increased use of federal budget loans to
refinance matured bonds and bank loans in 2015 is positive for the
credit profile, by allowing the region to limit growth of direct
debt and save on debt servicing (budget loans carry 0.1% interest
per annum). Exposure to refinancing risk is moderate. Refinancing
needs are limited to the repayment of domestic bonds totalling
RUB1.4 billion coming due in October and December 2015. This is
offset by RUB1.3 billion worth of federal budget loans, received
in September 2015, to repay maturing debt obligations. Mari El's
interim cash position improved to RUB675 million at end-8M15 from
RUB111 million in 2014. The republic maintains sufficient cash
balances to cover occasional cash mismatches. Interim liquidity is
also supported by the use of short-term treasury loans at
subsidized rates. Mari El's socio-economic profile is historically
weaker than the average Russian region. Its per capita gross
regional product was 30% lower than the national median in 2012-
2013, which is exacerbated by a weak economic environment in
Russia. The republic's government in its restated macro-economic
forecast expects economic growth of 2.4%-2.9% in 2015-2017,
against 3%-3.5% previously," Fitch said.

RATING SENSITIVITIES

The ratings could be positively affected by an improved budgetary
performance leading to deficit before debt decreasing below 5% of
total revenue, coupled with an extension of the debt maturity
profile. Conversely, a downgrade or revision of the Outlook to
Negative could result from sustained deterioration of operating
performance with an operating margin below 5%, coupled with weaker
debt coverage (2013: eight years) exceeding average debt maturity
(2013: four years) over the medium term.


MECHEL OJSC: Sberbank Expects to Reach Debt Deal By Year-End
------------------------------------------------------------
Jake Rudnitsky and Yuliya Fedorinova at Bloomberg News report that
Sberbank PJSC sees the possibility of a deal to restructure the
debt of Mechel OJSC, by the end of the year after disagreements
over changing the terms.

Sberbank remains the only major lender to Mechel yet to agree on
debt restructuring, Bloomberg notes.

In July, the lender said it plans to file bankruptcy claims
against three Mechel units, including a steel smelter in
Chelyabinsk and coal company, Bloomberg relates.

The producer has been trying to alter the terms of its debt since
2014, after coking-coal prices dropped, Bloomberg notes.

"If everything develops in the direction I see it going, by the
end of the year we can find a solution," Bloomberg quotes Sberbank
First Deputy Chief Executive Officer Maxim Poletaev as saying.
"All sides have started talking more actively, and everyone is
sick of this conflict."

Mr. Poletaev, as cited by Bloomberg, said the bank's position
toward Mechel debt solution is unchanged.

"Sberbank won't book any losses or give any discounts," Bloomberg
quotes Mr. Poletaev as saying.

Mechel had total debt outstanding of US$6.7 billion as of June,
Bloomberg discloses.

Mechel is a Russian steel and coal producer.


MOSCOW REGION: Fitch Affirms 'BB +' Issuer Default Rating
---------------------------------------------------------
Fitch Ratings has affirmed the Moscow Region's Long-term foreign
and local currency Issuer Default Ratings (IDRs) at 'BB+' with
Stable Outlooks and its Short-term foreign currency IDR at 'B'.
The agency has also affirmed the region's National Long-term
rating at 'AA(rus)' with a Stable Outlook. The affirmation
reflects Fitch's unchanged baseline scenario regarding Moscow
region's stable budgetary performance, strong self-financing
capacity and low debt.

KEY RATING DRIVERS

The ratings reflect the region's satisfactory operating
performance, low debt, strong liquidity and wealth and economic
indicators that are above the national median. The ratings also
factor in a weak institutional framework and an extensive public
sector that exposes the region's budget to large contingent
liabilities. Fitch projects the region's operating balance to
consolidate at 8% of operating revenue over the medium term, in
line with 2014 performance.

"We do not expect operating margin to recover to its historically
high 17% in 2011-2013 due to stagnating tax revenue and on-going
pressure on operating expenditure, which are mostly socially-
oriented. Its operating balance should remain sufficient to cover
interest payments and maturing debt in 2015-2016. Fitch forecasts
Moscow Region to record a deficit before debt variation of 5% of
total revenue (2014: 1.5%) as the region continues its investment
in infrastructure and maintains capex at an average 15% of total
expenditure in 2015-2017 (2014: 14%). A significant 95% of the
capex will be funded by the region's strong current balance,
capital transfers from the federal budget and cash balance," Fitch
said.

Fitch expects direct risk to stabilize at about 30% of current
revenue (2014: 30.5%) over the medium term, supported by the
region's strong self-financing capacity. At end-September 2015,
debt composed of RUB64 billion three- to five-year bank loans and
RUB33 billion budget loans due in 2015-2034. Refinancing needs are
concentrated in 2017-2018 when about 80% of direct risk will
mature. Fitch does not expect Moscow Region to have any issues
with refinancing its maturing debt due to its low levels of debt
and the region's sound access to bank loans through Sberbank of
Russia (BBB-/Negative/F3). Fitch takes a positive view of the
region's sound RUB94 billion cash balance as of end-September
2015. The region places its temporary available liquidity in bank
deposits and earns additional interest for the budget (9M15:
RUB5.4 billion). Fitch projects the region's cash balance to be
depleted by capex at end-2015 but to remain sound at RUB40bn.
Moscow Region directly and indirectly controls an extensive public
sector, consisting of more than 100 companies. This puts pressure
on budget expenditure through administrative expenses and
subsidies. However, Fitch does not consider risk from the sector
to be significant due to the large size of the region's budget and
prudent debt management. The region has a well-diversified economy
based on services and processing industries. The region's
proximity to the City of Moscow supports its wealth and economic
indicators being above the national median. In 2013, GRP per
capita was 37% above the national median and in December 2014
average salary was 54% over the national median. Fitch forecasts
4% contraction of national GDP in 2015, and expects the region to
also face a slowdown of activity although its economic indicators
should remain strong.

RATING SENSITIVITIES

Sharp growth of direct risk to above 50% of current revenue,
coupled with deterioration of operating performance resulting in
weak debt coverage, could lead to a downgrade. Restoration of the
operating margin to the historical high of above 15%, accompanied
by sound debt metrics with direct risk-to-current balance (2014:
4.7 years) below the weighted average debt maturity profile (2014:
three years) accompanied by a Russian economic recovery, could
lead to an upgrade.


NASPERS LIMITED: Fitch Says Acquisition Neutral for BB+ Rating
--------------------------------------------------------------
Fitch Ratings says Naspers Limited's (BB+/Stable) increased stake
in Russian online classified advertising platform, Avito, will be
neutral for the company's rating. Naspers has announced it will
increase its stake in Avito to 67.9% from 17.4%.

In Fitch's view, the acquisition fits within Nasper's overall
ecommerce strategy, representing a business it has been invested
in for a number of years and therefore knows well.

Avito appears well established as Russia's leading online
classified platform, with strong market positions in each of the
key market verticals. The business is growing strongly and
profitably, with revenue growth of 47% in the last 12 months (LTM)
to June 2015 and an LTM EBITDA margin of 49.8%.

Fitch recognizes the value of being the established market leader
in online classified advertising; a business model where
competition can be high but where audience market share is
important and where traffic and therefore audience monetization
tend to consolidate around the market leader.

Although it is a well-established classified online market, Fitch
considers Russia continues to represent significant growth
potential albeit with competition across the key verticals.

Naspers has said that it is evaluating suitable long-term funding
alternatives and that it does not expect the transaction to
materially increase its existing debt profile. Given the wide
array of portfolio options available to the group to fund the
acquisition, Fitch does not therefore expect current leverage
metrics to be materially affected.

Credit metrics continue to be weakened by the level of development
spend being invested in some of the earlier stage ecommerce
businesses. Fitch expects Naspers' operational and financial
profile to become more compatible with that of an investment grade
rating if development spend falls and if cash flow generation from
e-commerce significantly improves over the next two to three
years. In the meantime, the liquidity and value of the company's
associate investments -- notably its stakes in Tencent and Mail.ru
-- provide some flexibility and tolerance given the company's
near term cash flow and leverage profile. However, Fitch does not
explicitly factor these stakes into the ratings.


ROSEVROBANK: Fitch Affirms 'BB-' Long-Term Issuer Default Rating
----------------------------------------------------------------
Fitch Ratings has affirmed the Long-term Issuer Default Ratings
(IDR) of Rosevrobank (REB) at 'BB-' and SDM-Bank (SDM), Peresvet
Bank (Peresvet), Locko-Bank (Locko) and Absolut Bank (Absolut) at
'B+'. The Outlooks on REB, SDM and Peresvet have been revised to
Stable from Negative. The Outlooks on Absolut and Locko are
Negative.

KEY RATING DRIVERS: ALL BANKS' IDRS, NATIONAL LONG-TERM RATING AND
VIABILITY RATINGS (VRS)

The banks' IDRs and National Ratings are driven by their
standalone financial strength, as reflected in their Viability
Ratings. The affirmations reflect (i) only limited deterioration
of the banks' credit metrics to date, despite a more difficult
operating environment; (ii) generally reasonable capitalization in
light of conservative loan growth plans (somewhat higher at
Peresvet) and only limited loan impairment; and (iii) broadly
stable funding profiles, limited refinancing risks and reasonable
liquidity positions. On the negative side, the ratings continue to
be constrained by the banks' fairly narrow franchises resulting
in, among other things, significant balance sheet concentrations.

REB's higher IDRs, relative to the other four banks, primarily
reflect its stronger performance, benefiting from a high share of
granular and cheap current accounts (43% of end-1H15 total
liabilities) providing larger capacity to absorb potential losses
through income statement.

The revision of the Outlooks on REB, SDM and Peresvet's ratings to
Stable from Negative reflects Fitch's expectation that potential
asset quality deterioration at these banks will be only gradual
due to relatively conservative loan underwriting with a focus on
secured lending and/or government-related borrowers, which should
limit credit losses to a degree they can be absorbed by pre-
impairment profits without eating through capital. Locko and
Absolut are more vulnerable to economic recession due to riskier
lending and/or weaker performance and therefore the Outlook on
their ratings remains Negative.

Fitch continues to expect some asset quality pressure in the
banks, due to forecasted 4% GDP contraction in 2015 and only
modest 0.5% growth in 2016, falls in consumption, investment and
public spending and considerable currency devaluation.

KEY RATING DRIVERS - REB'S IDRS, NATIONAL LONG-TERM RATING AND VR

REB's non-performing loans (NPLs, 90 days overdue) equaled a low
2.9% of end-1H15 gross loans, only slightly up from 2.7% at end-
2014. These were 2.3x covered by loan impairment reserves (LIRs).
Restructured loans also remain stable at a low 1.9% of end-1H15
total loans (end-2014: 2.0%). Loan concentration is high, with the
top 25 exposures making 53% of corporate loans at end-1H15.
However, most of the largest exposures are moderate risk working-
capital loans to cash generative clients with a long operational
track record and low-risk loans to state and state-related
companies. Retail loans (24% of gross loans) are of limited risk,
as these are mostly mortgages with fairly low average LTVs.

Funding is a rating strength with interest-free current accounts
(mostly corporate) comprising a high 43% of end-1H15 liabilities
translating into low funding costs of 4.7% in 1H15, only slightly
up from 3.5% in 2014. This gives the bank a significant
competitive edge, allowing it to attract lower risk borrowers and
keep healthy margins. REB's current accounts are rather granular
(the 20 largest clients equaled low 11.5% of end-1H15 current
accounts) and proved to be rather sticky through the past crisis.
Liquidity risk is also mitigated by REB's solid liquidity cushion
(RUB51 billion at end-8M15), which covered 46% of total customer
accounts.

REB's Fitch Core Capital (FCC) ratio was a high 14.6% at end-1H15,
up from 12.5% at end-2014 due to limited growth and earnings
retention. Loss absorption capacity is also strengthened by solid
pre-impairment profit (excluding one-off trading and revaluation
gains), equaling 8% of average loans in 1H15 (annualized) and 9%
in 2014.

KEY RATING DRIVERS - SDM'S IDRS, NATIONAL LONG-TERM RATING AND VR

SDM's NPLs were a low 1.2% of end-1H15 gross loans with
restructured loans accounting for an additional 0.9%, compared
with 4.6% LIRs. Despite high concentrations (top 25 borrowers
accounted for 60% of end-1H15 corporate loans or 2.1x FCC), Fitch
considers the quality of SDM's largest exposures to be generally
adequate. The riskier part is exposure to car dealers (38% of end-
1H15 FCC), and loans to construction and property rental
businesses (62% of FCC), but these are well covered by hard
collateral.

SDM's capital position is reasonable, as expressed by 14.7% FCC
ratio. Pre-impairment profit (annualized 7% of average loans in
1H15 net of one-off trading and currency gains) benefits from
fairly low funding costs (5.3%), reflecting SDM's high share of
interest-free corporate accounts (42% of end-1H15 liabilities).
Liquidity risks are mitigated by a considerable liquidity cushion,
which was sufficient to withstand a substantial 60% reduction in
customer funding at end-8M15.

KEY RATING DRIVERS - PERESVET'S IDRS, NATIONAL LONG-TERM RATING
AND VR

Peresvet's business origination benefits from association with the
Russian Orthodox Church (ROC) and the Chamber of Commerce and
Industry of the Russian Federation (CCI), who are the main
shareholders with 49.7% and 24.4% stakes, respectively. Reported
NPLs were low 0.5% at end-1H15 and 1.4x covered by reserves. The
largest borrowers are mostly companies benefiting from government
contracts and Fitch believes that their revenues and hence
Peresvet's asset quality are somewhat less cyclical compared with
the broader economy.

The bank's capitalization remained reasonable, as expressed by
13.5% FCC ratio at end-1H15. Fitch estimates that Peresvet could
increase reserves by 5.1% of gross loans at end-1H15 before
breaching regulatory capital adequacy requirements. An additional
3.4% of gross loans can be absorbed through pre-impairment profit.

The liquidity position is comfortable with highly liquid assets
net potential wholesale repayments for the next year covering 42%
of total deposits at end-8M15.

KEY RATINGS DRIVERS - ABSOLUT'S IDRS, VR

Absolut's credit profile benefits from a strong commitment of its
majority shareholder, Non-State Pension Fund Blagosostoyanie,
ultimately controlled by JSC Russian Railways (BBB-/Negative), in
assisting the bank in its development. There is a track record of
the Fund providing considerable funding and equity capital to the
bank, the latter's significant involvement in servicing companies
related to the Fund, and the Fund's facilitating a merger of
Absolut with another small lender, KIT Finance Investment Bank
with cleaning up of the latter's balance sheet prior to the
merger.

Absolut NPLs were 3.0% at end-1H15, only moderately up from 2.5%
at end-2014. However, restructured loans spiked to a high 23% from
a moderate 9%, including a risky, albeit not NPL, exposure to a
recently failed Russian airline amounting to 2.6% of gross loans,
of which the bank expects to recover only a small amount.

Due to a shareholder equity injection in September 2015, the
bank's FCC ratio improved to 16% at end-9M15, although this would
have been a more moderate 14% if the airline exposure was fully
reserved. The total regulatory capital ratio was a tighter 13.7%
at end-9M15 due to higher regulatory risk-weighted assets rather
than in IFRS. This benefited from a RUB6 billion subordinated loan
from the Deposit Insurance Agency under the state recapitalization
program. Capitalization is vulnerable to potentially high loan
impairment charges, especially due to modest pre-impairment
profitability of 1.4% of average gross loans in 1H15 (2% for
2014).

The bank's funding and liquidity position is adequate, although
there is a high reliance on funding from related entities, which
accounted for a quarter of customer accounts at end-1H15. At end-
9M15, refinancing risk was manageable as wholesale funding of
RUB22 billion (11% of end-1H15 liabilities) maturing within a
year, including RUB10 billion of bonds with put options, was
significantly below Absolut's liquid assets, which equaled RUB49
billion (24% of end-1H15 liabilities).

KEY RATING DRIVERS - LOCKO'S IDRS, NATIONAL LONG-TERM RATING AND
VR

Locko's NPLs comprised 6.4% of gross loans at end-1H15 (6.2% at
end-2014), while restructured loans increased to 4.4% from: 2.7%.
Fitch believes that additional asset quality pressure may stem
from significant exposure to the construction sector (at least 70%
of end-1H15 FCC) as some of the projects are not yet completed;
and RUB0.3bn (2.5% of end-1H15 FCC) high risk exposure to a debt
collection agency buying bad loans from the bank.

FCC ratio is a reasonable 16.7%, although regulatory
capitalization is tighter. Locko's Tier 1 and total regulatory
capital ratios were 11.2% and 13.0%, respectively, at end-9M15
translating into ability to additionally create reserves
equivalent to only a moderate 5% of gross loans. Pre-impairment
profit, equaling 9% of average loans in 1H15 (annualized) provides
additional capacity for loss absorption. However, earnings were
boosted by significant non-recurring securities gains, while core
profitability is under pressure due to tighter margins and
elevated costs of risk.

At end-8M15, a liquidity cushion net of wholesale repayments
covered a high 43.5% of customer accounts. Refinancing risk is
moderate, as Locko needs to repay only RUB4.9bn (mostly local
bonds, 6% of end-1H15 liabilities) in the next 12 months.

RATING SENSITIVITIES - ALL BANKS' IDRS, NATIONAL LONG-TERM RATINGS
AND VRS

Negative rating action is possible if asset quality at any of the
banks deteriorates significantly and erodes the banks'
profitability and capital positions. These risks are more
significant at Absolut and Locko, as reflected by their Negative
Outlooks. Significant liquidity outflows and/or considerable
uplift in funding costs hurting the bank's pre-impairment
profitability could also be credit negative.

Positive rating action would require the improvement in the
operating environment and solid track record through the negative
side of the credit cycle.

KEY RATING DRIVERS AND SENSITIVITIES: SENIOR UNSECURED DEBT

The senior unsecured debt of Peresvet, SDM, Locko and Absolut is
rated in line with the banks' Long-term IDRs, reflecting Fitch's
view of average recovery prospects (corresponding to a Recovery
Rating of '4'), in case of default. Any changes to the banks' VRs
would likely impact their debt ratings.

SDM's expected senior unsecured debt ratings have been affirmed
and withdrawn as the issue is no longer planned.

KEY RATING DRIVERS AND SENSITIVITIES - SUPPORT RATINGS AND SUPPORT
RATING FLOORS

The '5' Support Ratings (SRs) of all five banks reflect Fitch's
view that support from the banks' private shareholders cannot be
relied upon. The SRs and Support Rating Floors of 'No Floor' also
reflect that support from the Russian authorities, cannot be
relied upon due to their narrow franchise and lack of systemic
importance. Fitch believes that any changes in the banks' SRs and
SRFs are unlikely in the near term, although if any of the banks
was sold to a higher-rated investor, it may result in changes to
the SRs.

The rating actions are as follows:

REB

Long-term foreign and local currency IDRs: affirmed at 'BB-';
Outlooks revised to Stable from Negative
Short-term IDR: affirmed at 'B'
Viability Rating: affirmed at 'bb-'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
National Long-term rating: affirmed at 'A+(rus)', Outlook revised
to Stable from Negative

SDM

Long-term foreign and local currency IDRs: affirmed at 'B+';
Outlooks revised to Stable from Negative
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'b+'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
National Long-term Rating: affirmed at 'A-(rus)'; Outlook revised
to Stable from Negative
Senior unsecured debt: affirmed at 'B+'
Senior unsecured debt National Rating: affirmed at 'A-(rus)'
Senior unsecured debt expected ratings: affirmed at B+(exp) and A-
(rus)(exp) and withdrawn

Peresvet Bank

Long-Term foreign and local currency IDRs: affirmed at 'B+';
Outlooks revised to Stable from Negative
Short-Term IDR: affirmed at 'B'
National Long-Term Rating: affirmed at 'A-(rus)'; Outlook revised
to Stable from Negative
Viability Rating: affirmed at 'b+'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
Senior unsecured debt: affirmed at 'B+'/'A-(rus)'; Recovery Rating
'RR4'

Locko

Long-term foreign and local currency IDRs: affirmed at 'B+',
Outlooks Negative
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating: affirmed at 'b+'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
National Long-term Rating: affirmed at 'A-(rus)', Outlook Negative
Senior unsecured debt: affirmed at 'B+'/Recovery Rating 'RR4' and
'B+(EXP)'/Recovery Rating 'RR4(EXP)'
Senior unsecured debt National Long-term Rating: affirmed at 'A-
(rus)'/Recovery Rating 'RR4' and 'A- (rus)(EXP)'/Recovery Rating
'RR4(EXP)'

Absolut Bank

Long-term foreign and local currency IDRs: affirmed at 'B+';
Outlooks Negative
Short-term foreign currency IDR: affirmed at 'B'
Viability Rating affirmed at 'b+'
Support Rating affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
National Long-Term Rating affirmed at 'A-(rus)'; Outlook Negative
Senior unsecured debt: affirmed at 'B+'/Recovery Rating 'RR4'
Senior unsecured debt National Long-term Rating: affirmed at 'A-
(rus)'


SETTLEMENT AND SAVINGS: Bank of Russia Ends Administration
----------------------------------------------------------
Due to the ruling of the Arbitration court of the city of Moscow
(case No. A40-153832/15), dated October 2, 2015, on the forced
liquidation of Commercial Bank Settlement and Savings Bank, LLC,
and the appointment of a liquidator, in compliance with Clause 3
of Article 18927 of the Federal Law "On the Insolvency
(Bankruptcy)", Bank of Russia took a decision (Order No. OD-2880,
dated October 22, 2015) to terminate from October 23, 2015, the
provisional administration of Settlement and Savings Bank, LLC,
appointed by Bank of Russia Order No. OD-1916, dated August 3,
2015, "On Appointing Provisional Administration to Manage the
Moscow-based Credit Institution Commercial Bank Settlement and
Savings Bank, limited liability company, LLC CB Settlement and
Savings Bank Due to the Revocation of its Banking Licence".



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


NPG TECHNOLOGY: Files For Insolvency Process in Madrid
------------------------------------------------------
Reuters reports that NPG Technology SA said on Oct. 21 it had
filed for insolvency proceedings in the Commercial Court in
Madrid.

NPG said it will continue with the process of debt renegotiation
with creditors and the implementation of agreement reached with
industrial and financial partners for their entry into the capital
of NPG, as announced on Oct. 16, Reuters relates.



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


MHP SA: S&P Raises Corp. Credit Rating to 'B-', Outlook Stable
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its local and foreign
currency long-term corporate credit ratings on Ukraine-based
farming group MHP S.A. to 'B-' from 'CCC-'.  The outlook is
stable.

S&P also raised its issue rating on the company's senior unsecured
debt to 'B-' from 'CCC-'.  S&P's '3' recovery rating on this debt
remains unchanged, indicating its expectation of meaningful
recovery in the event of a payment default, in the higher half of
the 50%-70% range.

The upgrade of MHP follows S&P's upgrade of Ukraine on Oct. 19,
2015.  The ratings on MHP are constrained by those on Ukraine
because S&P considers MHP to be heavily exposed to country risk in
Ukraine, where all its assets are located, under S&P's criteria
for ratings above the sovereign.

S&P continues to assess MHP's stand-alone credit profile (SACP) as
'b'.  The SACP reflects S&P's assessments of MHP's business risk
profile as "vulnerable" and its financial risk profile as
"significant."

MHP operates in a volatile agricultural industry and faces high
risk from operating in Ukraine.  The group benefits from a strong
market position in the country, occupying about half of the
domestic market for industrially produced chicken.  In 2014, MHP
exported about 30% of its chicken production, but S&P sees the
company as still largely dependent on the domestic market, and S&P
considers the diversification from poultry as limited given that
only 20% of revenues are derived from other businesses such as
fodder, crop, and sunflower seeds.  The solid reported EBITDA
margin is a supporting credit factor.  Margins were 40% in 2014
but 26% the previous year, reflecting the very high volatility due
to the difficult situation in Ukraine.

MHP's assets are based in Ukraine and S&P believes the country's
weak institutional and regulatory environment poses a number of
risks, such as potential renewed export limitations, which could
restrict MHP's sales and margins.

S&P's business risk assessment incorporates its view of the global
agribusiness and commodity food industry's "intermediate" risk and
Ukraine's "very high" country risk.

S&P anticipates that MHP's debt-to-EBITDA ratio will likely be
around 2x-3x over the next two years, which would be in line with
an "intermediate" financial risk profile assessment, but S&P's
expectation that EBITDA interest coverage will be around 3x-5x
constrains its financial risk profile assessment at "significant."
S&P assess the financial policy as a negative factor because of
management's large planned investments, which put pressure on free
cash flow generation.

The stable outlook reflects the outlook on the foreign currency
long-term sovereign credit rating on Ukraine.  It also reflects
S&P's view that MHP's operating performance will remain sound over
the next year, resulting in solid free operating cash flow
generation, adjusted debt to EBITDA of around 2.5x-3.0x, EBITDA
interest coverage ratios of around 4x-5x, and sufficient liquidity
to fund working capital needs.

S&P would consider lowering the ratings on MHP if S&P was to
downgrade Ukraine or revise downward the country's transfer and
convertibility (T&C) assessment.  However, these eventualities
would not automatically result in a downgrade of MHP if the
company showed resilience to country-specific risks, such as
stricter currency restrictions, and if it was able to continue to
service its debt despite a sovereign default.  S&P notes that MHP
benefits from ongoing foreign currency inflows from exports.
This, combined with offshore cash accounts, somewhat mitigates
local T&C constraints.

An upgrade would be closely linked to an upgrade of the sovereign
as S&P considers that the rating on MHP will likely continue to be
capped by the sovereign foreign currency rating on Ukraine.  S&P
could also raise the rating if MHP passes S&P's sovereign stress
test, allowing us to rate MHP above Ukraine, at the level of the
company's SACP.


UKRAINIAN AGRARIAN: S&P Raises Corp. Credit Rating to 'B-'
----------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Ukrainian farming group Ukrainian Agrarian
Investments S.A. (UAI) to 'B-' from 'CCC-'.  The outlook is
stable.

The upgrade of UAI, whose asset base is concentrated in Ukraine,
follows S&P's upgrade of Ukraine on Oct. 19, 2015.  S&P's 'b-'
assessment of UAI's stand-alone credit profile is no longer higher
than the foreign currency long-term sovereign credit rating on
Ukraine.  Consequently, S&P no longer applies its rating above the
sovereign criteria to UAI.  In addition, S&P do not make any
downward adjustment from its SACP on the company.

S&P's assessment of UAI's business risk primarily reflects its
participation in volatile agricultural industry and the high risk,
in S&P's view, of doing business in Ukraine.  Moreover, there's a
history of Ukrainian government intervention in UAI's markets.
S&P thinks UAI's sales, profitability, and cash flow could weaken
if the Ukrainian government were to interfere in agricultural
markets in the future, including by imposing restrictions on
export sales.  In addition, the highly seasonal nature of UAI's
business (entailing fluctuations in working capital), the
unpredictability of weather patterns and agricultural product
prices are key risks for the company and the rating.  Many of
these risks are largely out of the company's control.  Notably,
prices for wheat and corn have plummeted since their 2012 peak.
The risk of government restrictions on exports is low in the near
term, though, in S&P's view, given Ukraine's need for hard
currency.

Still, S&P believes that UAI benefits from its lease rights to
high-quality farmland, low production costs, the currently
favorable trading environment (in terms of pricing and demand) for
its crops, and, to a lesser extent, a natural hedge against
weather risk, with 64 farms spread across Ukraine.

The company's output is diversified primarily between corn, wheat,
sunflower, and soybean.  However, this has not been a natural
buffer against weather so far, with one crop differentiating in
terms of yield or pricing trend.  Volatility has been very high in
the past few years, with a substantial trough in 2013 when low
crop yields coincided with sagging prices.

S&P views UAI's competitive position as "weak," but S&P assess the
overall business risk profile as "vulnerable" based on its
assessment of country risk in Ukraine as "very high."

S&P assesses UAI's financial risk profile as "aggressive."  The
company's five-year average credit metrics, notably debt to EBITDA
in the 3x-4x range, point to the "significant" category.  However,
UAI's credit ratios, as adjusted by Standard & Poor's, are highly
volatile, so S&P assess the company's financial risk profile as
"aggressive," one category lower than significant.

UAI's free operating cash flow was positive last year, despite an
increase in working capital.  Capital expenditures are modest, and
we expect cash flows will continue to be positive in the future.
Cash flow generation is, however, contingent on the company's
decision to sell its crop by the end of the fiscal year (ending
Dec. 31) or to wait until the beginning of the next year,
depending on expected pricing.

In S&P's base case for UAI, it assumes:

   -- Relatively good crop yields in 2015;
   -- Still-unfavorable prices amid high inventories worldwide;
   -- A 10% increase of planted surface in 2015, due to the
      company's enhanced liquidity, and a further increase in
      2016;
   -- EBITDA of about US$40 million in 2015 and in the
      US$40 million-$50 million range for 2016;
   -- Capital expenditures (capex) of about US$5 million in 2015;
   -- About US$20 million of discretionary cash flow (DCF) per
      year;
   -- No significant plans for acquiring land banks; and
   -- A weak Ukrainian hryvnia, prompting low production costs.

Based on these assumptions, S&P arrives at these credit metrics
for UAI, expressed as a weighted average over 2013-2017, as per
S&P's criteria:

   -- EBITDA in the US$40 million-US$50 million range,
   -- Adjusted funds from operations (FFO) at approximately 30%,
      and
   -- Debt to EBITDA of about 3.25x.

The combination of the "vulnerable" business risk profile and
"aggressive" financial risk profile result in an anchor, or
baseline assessment, of 'b' for UAI under S&P's criteria.  Due to
the magnitude of the company's short-term debt, S&P views its
capital structure as negative.  As a result, S&P assess UAI's SACP
one notch lower than the anchor, at 'b-'.  In addition, S&P's view
of the company's liquidity as "weak" caps its long-term rating at
'B-'.

The stable outlook on UAI mirrors that on Ukraine and reflects
S&P's view that UAI will maintain resilient operating performance
and sufficient liquidity to fund its working capital buildup ahead
of upcoming harvests.

S&P could lower its ratings on UAI if Ukraine's credit quality
were to deteriorate, which could lead to tighter currency
controls, more restrictions on the transfer of funds, or rising
political or fiscal pressures.  However, a downgrade of Ukraine or
a downward revision of S&P's transfer and convertibility (T&C)
assessment on Ukraine would not automatically result in a
downgrade of UAI, if it demonstrated resilience to country-
specific risks (such as stricter currency restrictions), and
continued to repay its debt.  In 2015, UAI met all its debt
repayments even though S&P had lowered Ukraine to 'SD' (selective
default).  S&P could also lower the ratings if UAI's liquidity
were to deteriorate.

Ratings stability for UAI, all else being equal, would depend on
S&P's revision of the outlook to positive on Ukraine.  Any rating
upside would be also closely linked to an improvement in the
company's liquidity, which S&P currently views as "weak," owing to
the dependence on short-term debt to finance working capital.  A
revised assessment of liquidity to "less than adequate" from
"weak" and the ensuing strengthening in the group's capital
structure could also prompt a positive rating action on UAI.



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


LITTLE GYM: Parents Out of Pocket as Gym Shuts Amid Insolvency
--------------------------------------------------------------
Herts & Essex Observer reports that furious families have been
left out of pocket after Bishop's Stortford's Little Gym closed
suddenly on October 21.

The report says the childcare franchise on London Road, which
according to its website is owned by Virginia Barlow, shut its
doors after eight years in business.

Many parents learned classes had been cancelled via a message on
the gym's Facebook page, which is no longer available, according
to the report.

Herts & Essex Observer relates that the parents were told:
"Although we have all worked so hard to make the business a
successful going concern, as is often the case in life, situations
sometimes arise which simply cannot be predicted or anticipated
and I have had to take the very difficult decision to close this
The Little Gym.

"This has not been an easy decision as over the years I have made
continued investment into this business to remain open.
Unfortunately the stress of the continued struggle to keep the
business going has caused personal illness and I cannot keep it
going."

According to the report, the message said the business is
insolvent and ThorntonRones Insolvency Practitioners will be
instructed to convene a meeting for creditors.


NEW HORIZON: High Court Winds Up GBP3.1-Mil. Oil Investment Scam
----------------------------------------------------------------
Two companies -- New Horizon Energy Limited and New Horizon Energy
LLC (incorporated in the State of Illinois USA) -- that claimed to
offer significant investment opportunities, have been wound up in
the High Court following an investigation by Company
Investigations of the Insolvency Service.

Both companies sought investments from members of the public for a
percentage share ownership of oil wells in the United States.

The investigation found investors were promised large returns to
be paid monthly, based on the volume of oil produced from each
well. They were told that the wells were already producing oil at
a substantial rate. The reality was that the wells hadn't been
drilled and therefore were not producing oil. Investors had been
chasing the companies for information about their investment and
were given updates detailing delays and problems with a constant
reassurance that the wells would be ‘producing shortly'.

There was much confusion as to which company the investments were
with, New Horizon Energy Limited or New Horizon Energy LLC. The
two companies overlapped and both would provide updates to
investors. The director of New Horizon Energy Limited and New
Horizon Energy LLC failed to co-operate fully with the
investigation. He failed to deliver accounting records for both
companies.

Although some GBP3.1 million was received from investors, the
investigation was unable to identify any investor funds that were
applied by the companies in furtherance of the investment
opportunities for which the investors had paid their money.

David Hill, Chief Investigator said that: "Businesses such as
these must be brought to an end to protect investors and rid the
business environment of companies that operate with dishonesty."

New Horizon Energy Limited was incorporated on July 27, 2012,
under the name of Natural Gas Investments Limited (Company
registration number 08159655). The registered office of the
company is 10th Floor, One Ropemaker Street, London, EC2Y 9HT.

New Horizon Energy Limited Liability Company was organised on
Nov. 12, 2012, file number 04149114, in the state of Illinois. The
registered office of the company is 939 West North Avenue, Ste
750, Chicago, Illinois IL 606420000.

The recorded director of both companies is Adam Skeet.

The petitions were presented under s124A of the Insolvency Act
1986 and The Official Receiver was appointed as provisional
liquidator of the companies on Aug. 5, 2015, by Mr Justice Norris.
The companies were wound up by the High Court on Oct. 7, 2015.



===============
X X X X X X X X
===============


* Moody's: Relationship Between Sovereigns & NOCs Highlights Risk
-----------------------------------------------------------------
A multi-faceted relationship between national oil companies (NOCs)
and sovereigns presents both risks and credit strengths.  NOCs
with high debt levels and diminished financial capacity present
the greatest contingent liability risks for sovereigns, Moody's
Investors Service says.  Meanwhile, the impact of sovereign
support and influence on NOC ratings varies.

In "Sovereigns & National Oil Companies - Relationship is a Source
of Credit Strength and Risk for Both," Moody's looks at the
multiple aspects of the economic, financial and policy links
between NOCs and Sovereigns.  The report also focuses on six NOCs,
two in the Commonwealth of Independent States (CIS) and four in
Latin America, where the NOCs' financial metrics suggest that they
pose the highest risk to their sovereigns.  The report is an
update to the markets and does not constitute a rating action.

"Three main factors can jeopardize a NOC's ability to service its
debt and lead to the crystallization of contingent liabilities for
the sovereign: oil price shocks, more gradual but persistent
losses or corporate governance risks," Moody's Vice President --
Senior Analyst Jaime Reusche says.  "NOCs that pose the highest
risk have a combination of relatively lower financial robustness
and relatively high debt levels."

Among the Latin American countries where NOCs present the highest
risk are Brazil's (Baa3 stable), with NOC Petrobras (Ba2 CFR/b2
BCA stable) and Mexico's (A3 stable), with PEMEX (A3/Aaa-mx issuer
rating RUR / ba1 BCA), Petrotrin (Ba1 CFR / b1 BCA negative) of
Trinidad & Tobago (Baa2 negative) and PDVSA (Caa3 FC Bond
Rating/caa1 BCA stable) in Venezuela (Caa3 stable).

Both Petrobras and PEMEX are the integrated energy companies whose
ratings reflect a high level of implicit support from their
respective sovereigns.  The Brazilian government has expressed a
willingness to backstop Petrobras, and while PEMEX's monopoly
position and relevancy to government finances has weakened, lower
oil prices have been enough of a drag to prompt economic support
from Mexico.  PEMEX's rating is currently on review for downgrade.
In February, Petrobras was downgraded to Ba2 from Baa1.

Moody's also assumes a high level of governmental support for
PDVSA (Caa3 FC Bond Rating/caa1 BCA stable), Venezuela's (Caa3
stable) NOC, given high interventionism, poor corporate governance
and the importance of PDVSA to the government's finances.

"In LatAm, of the eight NOCs that we rate, the largest increase in
debt relative to the size of the economy over the last five years
has been in Venezuela's PDVSA.  This particular NOC faces greater
sovereign risks than all of its rated peers and has the lowest
rating," Reusche says.

KazMunayGas JSC (KMG, Baa3 issuer rating / ba3 BCA stable) is
owned by Kazakhstan's government via a fund mandated by the state
to protect its interest in the oil and gas sector.  KMG
contributed 11% of total government revenues in 2014 and depends
on governmental support for energy exports.  Such support,
combined with strong corporate governance mitigate the risks
implied by lower oil prices.


                            *********

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

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

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


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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

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

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

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

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

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000 or Nina Novak at
202-362-8552.


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