TCREUR_Public/151113.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Friday, November 13, 2015, Vol. 16, No. 225

                            Headlines

G E R M A N Y

PHOENIX PHARMAHANDEL: Fitch Affirms 'BB' IDR, Outlook Stable


G R E E C E

PIRAEUS: Most Precarious Bank Among Top Lenders, ECB Finds


H U N G A R Y

HUNGARIAN BANKS: Moody's Takes Rating Actions on 6 Institutions


I R E L A N D

CLERY'S: High Court Approves Survival Scheme, 130 Jobs Saved
EPHIOS BONDCO: S&P Assigns 'B+' CCR & Rates EUR1.485BB Notes 'B+'
MCWILLIAM PARK: Unsustainable Debt Prompts Examinership


I T A L Y

ALITALIA-LINEE: Jan. 18 EAS Expressions of Interest Deadline Set


L U X E M B O U R G

BRAAS MONIER: S&P Raises CCR to 'BB-', Outlook Stable


R U S S I A

DELOPORTS LLC: Fitch Assigns 'BB-(EXP)' Rating to RUB3BB Bond
MEZHREGIONBANK LLC: Placed Under Provisional Administration
REGIONAL BANK: Placed Under Provisional Administration
REGIONAL SAVINGS: Placed Under Provisional Administration
RUSSIAN AGRICULTURAL: To Continue Relying on Gov't, Moody's Says

RUSSIAN SLAVIC: Placed Under Provisional Administration


S P A I N

EMPRESAS HIPOTECARIO 3: Fitch Hikes Cl. B Notes Rating to 'Bsf'


S W E D E N

BRAVIDA HOLDINGS: S&P Raises LT Corporate Credit Rating to 'BB-'


U K R A I N E

KYIV CITY: Fitch Lowers LT Issuer Default Rating to 'D'
KYIV CITY: S&P Lowers Long-Term Issuer Credit Ratings to 'D'


U N I T E D   K I N G D O M

COVENTRY AND RUGBY: Moody's Cuts 2040 Bond Rating to 'Ba2'
FAIRLINE BOATS: MP Calls for Meeting Following Job Cuts Warning
GREENWICH CITY: Fitch Raises Rating on GBP74MM Bonds From 'BB+'
TMK PAO: Moody's Says TMK Capital Tender Offer Credit Neutral
ZEBEDEE: Community Initiates a Fundraiser for Affected Mothers


X X X X X X X X

* Moody's Says EMEA Manufacturing Turns Neg. on Growth Prospects
* EMEA Oil Majors Outlook Negative for 2016, Fitch Says
* BOOK REVIEW: Oil Business in Latin America: The Early Years


                            *********


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G E R M A N Y
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PHOENIX PHARMAHANDEL: Fitch Affirms 'BB' IDR, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed Germany-based pharmaceuticals
wholesaler Phoenix Pharmahandel GmbH & Co. KG's Long-term Issuer
Default Rating at 'BB'.  The Outlook is Stable.  Fitch has also
affirmed the instrument ratings on the bonds issued by Dutch
finance company, Phoenix PIB Dutch Finance B.V., at 'BB'.

The ratings are underpinned by Phoenix's leading market position
in the European pharmaceutical wholesale and distribution (W&D)
market, supplemented by a growing presence in the higher margin
pharmaceutical retail channel.  The affirmation reflects Fitch's
expectation that despite being stretched for the next two years,
Phoenix's financial metrics should gradually return to being in
line with the agency's leverage guidance.  The Stable Outlook
assumes that there will be further gradual improvements in
profitability, driven by a gradual improvement of the German
operations coupled with a greater share of retail contributions
and a more normalized working capital position.  Fitch assumes
that acquisitions such as Mediq, which are larger than those it
has historically made, will not be repeated.

KEY RATING DRIVERS

Elevated Leverage Restrains Rating Headroom

The recent difficult trading environment in Germany, which
required investment in working capital, as well as the
potentially debt-funded Mediq acquisition have stretched debt
protection ratios.  Fitch now forecasts funds from operations
(FFO) adjusted net leverage peaking at 4.7x in FY15 and static in
FY16 (FY14: 4.4x).  This temporarily breaches the 4.5x downgrade
sensitivity, removing headroom under the 'BB' rating.  Fitch
calculates leverage by applying a EUR125 mil. adjustment for
restricted cash and intra-year working capital swings as per its
criteria).

Stable Outlook Reflects Expected Deleveraging

The Stable Outlook reflects Fitch's assumption that there will be
further improvements in profitability in the German market, more
normalized working capital as well as a return to bolt-on
acquisitions.  This should allow for satisfactory deleveraging in
the later years of Fitch's four-year rating case.  As a result,
Fitch assumes FFO-adjusted net leverage will return to well below
the 4.5x sensitivity from FY17, a level more commensurate with
the 'BB' rating.  The rating is also underpinned by satisfactory
FFO fixed charge cover (FCC) at around 2.5x throughout the four-
year rating case, which has been improving as the group has
refinanced higher yielding debt over the past two years.

Structurally Weak Profitability in Pharma Wholesale

Pharmaceutical wholesale is the company's core business.
However, compared with pharmaceuticals manufacturers, the
profitability of wholesalers is very limited, despite the
oligopolistic structure of the industry.  Fitch expects Phoenix's
wholesale and distribution margin to remain aligned with its
wholesale sector peers in our four-year rating case.  This
reflects intense competitive and regulatory pressures and Fitch
does not expect scope for margin expansion in the industry.

Continued Expansion in Retail Markets

Fitch expects Phoenix to conduct further investment to increase
its vertical diversification in retail channels and views the
announced acquisition of Mediq's Dutch wholesale and retail
assets as a good strategic opportunity to create a leading market
position in the competitive developed Western European markets.
Besides Mediq, Fitch expects further acquisition of retail
chains, but spending will be subject to opportunities arising and
we assume it will be of smaller, bolt-on nature as emerging
European economies liberalize.  Fitch's rating case budgets for
around EUR25 million additional bolt-ons per year.

Integrated Business Model Improves Risk Profile

Phoenix's strategy is to continue developing its geographic
presence in Europe, focusing on opportunities to build an
integrated business model spanning wholesale and retail, to
maximize margins across the value chain as the retail channels
have a structurally higher margin compared with W&D and supports
Fitch's assumptions of a gradually improving group EBITDA margin
trending towards 2.5%.

Core German Wholesaling Margin to Recover

Phoenix also continues to repair profitability in its German
wholesale market, which suffered a significant drop in
profitability following an unsustainable price competition
initiated following regulatory changes in 2011.

Fitch assumes the German W&D margins will gradually improve
supported by ongoing restructuring and despite some headwinds
associated with the introduction of the minimum wage in Germany.
Due to regulation, Phoenix is not able to develop a retail
channel in the German market and only operates a wholesale and
distribution business.

Wholesale Pharmaceuticals Leader

Phoenix is one of the largest European players in the
pharmaceuticals wholesale market.  The rating reflects its
geographical diversification, which helps strengthen its market
position with pharmaceutical manufacturers and makes it fairly
resilient to healthcare policy changes in countries.  However,
the pharmaceutical wholesale sector is subject to comprehensive
regulation, affecting major aspects of the underlying business
model, especially the distribution chain, reimbursement and
pricing levels, including margin structures of pharmaceutical
distribution and related services.  Regulatory intervention tends
to recognize pharmaceutical distribution as a key cost in
national healthcare systems and to target it as one of many
possible items where to identify savings.

European Industry Structure Constrains Consolidation

Fitch views buying power and scale as key drivers for industry
consolidation, as with increasing purchasing volume, players have
the ability to extract extra value from suppliers.  However, due
to existing regulation in individual markets the European
distribution landscape lacks the same scope for concentration
experienced in the US.

Three pan-European wholesalers have so far emerged through
consolidation: Alliance Boots, Celesio, and Phoenix Group, the
first two now part of larger US distributors.  Beyond these
leading three players, there are numerous full-line and short-
line wholesalers in operation, also reflecting the less
concentrated and more fragmented retail channels in many EU
countries.

Instrument Rating

Fitch rates Phoenix's bonds and bank debt (which both rank pari
passu) at the same level as the IDR, reflecting only limited
subordination from the group's prior ranking on-balance sheet ABS
and factoring lines and Italian credit lines representing around
EUR506m outstanding at end-FY14 (January).

Accordingly prior ranking debt compared with EBITDA in FY14 was
1.1x (reducing from 1.3x compared to prior year given) and the
agency expects this to remain below 1.5x going forward, which is
comfortably below the 2.0x-2.5x threshold that Fitch typically
applies in its recovery analysis to assess subordination issues
for unsecured bond holders.   In addition, subordination is also
mitigated by the upstream guarantee network capturing minimum 70%
of turnover and EBITDA.

LIQUIDITY

Fitch views Phoenix's funding structure as diversified and
liquidity as satisfactory.  At end-FY15, Phoenix had headroom of
around EUR1.5 billion under its committed facilities and an
unrestricted cash position of EUR442 million, which was more than
sufficient to cover its short-term financial liabilities of
EUR760 million (including ABS/factoring).

KEY ASSUMPTIONS

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

   -- Moderate sales growth over the four-year rating case (1.0%-
      2.0% per year);
   -- EBITDA margins projected to trend towards 2.5%.
   -- Mediq acquisition expected to complete in FY16, which Fitch
      conservatively assumes will be debt-funded together with
      Celesio as JV partner.
   -- Working capital outflow of EUR225 million in FY15/16,
      followed by a normalizing working capital position
      thereafter.
   -- Capex constant at 0.6% of sales, cash tax rate at 27%,
      bolt-on acquisition basket of EUR25 million per year.
   -- No dividends projected.

RATING SENSITIVITIES

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

   -- Continued and/or increasing competitive pressures in key
      geographies leading to permanent pressure on profitability.
      Higher than anticipated debt funded investment levels,
      leading to:
   -- Net (lease, factoring and ABS) adjusted FFO adjusted net
      leverage above 4.5x on a sustained basis (FY14: 4.4x).
   -- FFO fixed charge coverage below 2.2x (FY14: 2.6x).
   -- FCF/EBITDAR falling below 25% on sustained basis (FY14:
      36%).

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

   -- Stabilization of operating performance and conservative
      financial policy driving FFO-adjusted net leverage to below
      3.5x.

   -- FFO fixed charge coverage above 3x.

   -- FCF/EBITDAR sustainably above 40%.

   -- Slowing competitive pressure in Phoenix's major markets and
      sustainable improvement in the group-wide profitability.



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G R E E C E
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PIRAEUS: Most Precarious Bank Among Top Lenders, ECB Finds
----------------------------------------------------------
Kerin Hope at The Financial Times reports that a reluctance to
pursue distressed borrowers is one reason why Piraeus is judged
to be the most precarious among Greece's four top lenders,
according to the European Central Bank's latest health check of
the sector.

As Greece's biggest bank, shoring up the finances of Piraeus, and
those of its peers, will be crucial in kick-starting lending to
the country's economy, helping it to climb out of a brutal
recession that has shrunk the economy by almost a quarter since
2009, the FT notes.

The bank's dire straits has revived debate about the aggressive
expansion strategy pursued by Michalis Sallas, Piraeus's
long-serving chairman, at the height of the Greek crisis, the FT
states.

While other Greek banks battened down as the crisis deepened,
Mr. Sallas masterminded a series of acquisitions of collapsing
lenders for nominal sums with the aim of making his own bank "too
big to fail" in the event of a prolonged depression, said several
Greek bankers, the FT relates.

"There's no doubt that Piraeus used its political influence to
acquire assets on the cheap," the FT quotes Costas Lapavitsas, an
economics professor at London's School of Oriental and African
Studies and a former MP with the ruling Syriza party, as saying.

But as Piraeus and its peers -- National Bank of Greece, Eurobank
and Alpha -- rush to meet a Dec. 31 deadline for raising EUR14.4
billion of fresh capital to shore up their balance-sheets and
avert a possible bail-in of depositors, the latest ECB stress
tests have laid bare the flaws in Mr Sallas' strategy, the FT
notes.

According to the FT, troubled loans made up as much as 57% of
Piraeus's portfolio at the end of June compared with 42% for
Eurobank, the strongest Greek bank.  Piraeus's total capital
requirement were EUR4.9 billion, against Eurobank's EUR2.1
billion, the FT states.

Capital controls imposed in June helped prevent a full scale
banking collapse but also pushed lossmaking businesses deeper
into the red as previously restructured loans defaulted again,
the FT recounts.

Piraeus, NBG, Alpha and Eurobank presented plans to the ECB last
week to raise capital through a mix of equity offerings, bond
swaps and the sales of foreign subsidiaries, the FT relates.

Piraeus launched an investor roadshow recently to raise at least
EUR1.6 billion in fresh equity after arranging a EUR600 million
debt-for-equity swap, thereby meeting the EUR2.2 billion capital
injection required by the ECB for the bank to return to normal
operations, the FT discloses.

Piraeus would then seek an additional EUR2.7 billion, required to
meet the ECB's scenario of what it needs to withstand another
deep recession, from the Hellenic Financial Stability Fund
(HFSF), a state bailout vehicle backed by the EU's single
supervisory mechanism (SSM), the FT says.

The HFSF, the FT says, will disburse funds from a EUR25 billion
bank recapitalization basket included in the country's latest
EUR86 billion bailout.

Piraeus Bank SA is a Greek multinational financial services
company with its headquarters in Athens, Greece.



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H U N G A R Y
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HUNGARIAN BANKS: Moody's Takes Rating Actions on 6 Institutions
---------------------------------------------------------------
Moody's Investors Service has taken rating actions on six
Hungarian banks, prompted by the outlook change to positive from
stable on the Hungarian government's Ba1 debt rating.

Furthermore, Moody's changed Hungary's Macro Profile to "Weak+"
from "Weak", driven by the improvement in the Hungarian banks'
operating environment, in particular in the country's economic
strength. The strengthening of the Macro Profile has led Moody's
to review all Hungarian banks' financial factors and standalone
credit profiles, reflected in rating actions on selected banks'
standalone baseline credit assessment (BCA) and ratings.

The following banks are affected by the rating actions:

-- Affirmation with a positive outlook (previously stable) of
    MFB Hungarian Development Bank Private Limited Company's
   (MFB) long-term foreign currency debt and deposit ratings at
    Ba1 and Ba2, respectively;

-- Affirmation with a positive outlook (previously stable) of
    the Ba2 long-term foreign currency deposit ratings of OTP
    Bank NyRt (OTP) and OTP Jelzalogbank Zrt. (OTP Mortgage Bank
    Ltd.);

-- Upgrade by one notch of Erste Bank Hungary Zrt.'s long-term
    deposit ratings to B2, long-term Counterparty Risk Assessment
    (CRA) to Ba2(cr), the baseline credit assessment to caa1 and
    the adjusted BCA to b2; the outlook on the long-term deposit
    ratings remains stable;

-- Affirmation with a stable outlook of Kereskedelmi & Hitel
    Bank Rt.'s Ba3 long-term deposit ratings, its long-term and
    short-term CRA at Baa3(cr)/Prime-3(cr), and its BCA and
    adjusted BCA at b2 and ba3, respectively; and

-- Affirmation with a stable outlook of Budapest Bank Rt.'s B2
    long-term deposit ratings, its long- and short-term CRA at
    Ba3(cr/Not-Prime(cr), and its BCA and adjusted BCA at b2,
    respectively.

All other ratings and rating inputs of the banks captured by
today's rating actions remain unaffected. In addition, the
ratings and outlook of other Moody's rated Hungarian banks --
such as MKB Bank Zrt. and FHB Mortgage Bank Co. Plc. -- are
unaffected by today's actions.

RATINGS RATIONALE

-- POSITIVE OUTLOOK DRIVEN BY CHANGE OF OUTLOOK ON GOVERNMENT
    DEBT RATING

The change of the outlook on the Hungarian government's Ba1 debt
rating has led to the affirmation with a positive outlook of the
Ba2 long-term foreign-currency deposit ratings of MFB Hungarian
Development Bank Private Limited Company (MFB), OTP Bank NyRt
(OTP), and OTP Jelzalogbank Zrt. (OTP Mortgage Bank Ltd.). These
ratings, which are constrained by Hungary's Ba2 foreign-currency
deposit ceiling, could be upgraded in the event of the
government's debt rating upgrade and increase of the
aforementioned ceiling.

Furthermore, the positive outlook on the government's debt rating
has led to the affirmation with a positive outlook on MFB's Ba1
foreign-currency debt rating. MFB is a development bank that is
owned and guaranteed by the Hungarian government, and it plays a
vital role in the government's policy to support domestic
economic development. Moody's continues to assume a very high
probability of support from the Hungarian government for MFB,
reflected in the framework of explicit and irrevocable state
guarantees for the bank's liabilities.

-- IMPROVEMENT OF HUNGARY'S MACRO PROFILE REFLECTED IN RATING
    ACTIONS OF SELECTED BANKS

The strengthening of Hungary's Macro Profile to "Weak+" from
"Weak" was driven by the improvement in the Hungarian banks'
operating environment, in particular the country's economic
strength.

The more benign macroeconomic environment helps Hungarian banks
to stabilize their credit fundamentals. However, it is unlikely
to lead to material improvements in the banks' credit profiles.
Credit conditions remain challenging as loan demand is weak and
banks are burdened with high levels of problem loans. Therefore,
the Macro Profile improvement has only limited impact on the
Hungarian banks' ratings and has affected only the following
banks.

Erste Bank Hungary

The upgrade of Erste Bank Hungary Zrt.'s (EBH) long-term deposit
ratings to B2 with a stable outlook from B3 (stable) was driven
by: (1) The upgrade of the bank's standalone baseline credit
assessment (BCA) to caa1 from caa2; (2) unchanged assumption of
high parental support from the bank's parent, Austria's Erste
Group Bank (Baa2 Positive /P-2, BCA ba1), resulting in two
notches of uplift from the BCA and an adjusted BCA of b2 (from
b3); and (3) no additional rating uplift from Moody's Advanced
Loss-Given-Failure (LGF) analysis and assumptions of low
government support.

The upgrade of EBH's BCA reflects its weak asset quality and
profitability, but also reduced pressure on capital adequacy and
good liquidity. EBH reported a loss of HUF101.4 billion in 2014,
largely driven by HUF105.5 billion of compensation charges to
retail borrowers. Despite a decline in the volume of problem
loans in 2014, the share of such loans rose to 27.2% of gross
loans at year-end 2014 from 26% at year-end 2013, as the bank's
loan book continued to contract.

The pressure on capital adequacy stemming from loan loss charges
and compensation provisions for retail borrowers was eased
following a HUF95 billion capital increase in 2014. As a result,
the bank's reported Tier 1 ratio stood at 11.8% at year-end 2014.
EBH's liquidity remains stable with liquid assets accounting for
around a third of the total assets at year-end 2014.

Kereskedelmi & Hitel Bank Rt.

The affirmation of Kereskedelmi & Hitel Bank Rt.'s (K&H) Ba3
long-term deposit ratings with a stable outlook are based on: (1)
The affirmation of its b2 BCA; (2) Moody's assumption of high
parental support from the bank's parent, Belgium's KBC Bank N.V.
(A2 Positive/P-1, BCA baa2), resulting in two notches of uplift
from the BCA; and (3) no additional rating uplift from Moody's
Advanced LGF analysis and assumptions of low government support.

The affirmation of K&H's b2 BCA reflects the bank's satisfactory
profitability and capitalization, good liquidity and weak asset
quality.

In H1 2015, the bank reported a return on average assets (RoAA)
of 0.73% following a negative RoAA of 1.15% in 2014, that was
driven by large provisions against compensation payments to
retail borrowers. Asset risk receded modestly during 2014, as the
reported non-performing loan (NPL) ratio declined to 15.85% as of
end of December, down from 18% at the previous year-end. The loss
reported in 2014 negatively affected K&H's capitalization, with
the bank's reported Tier 1 ratio declining to 11.7% as of
December 2014 from 13.3% as of December 2013. The bank's return
to profitability, supported by modest growth in lending, should
lead to a moderate improvement in capital adequacy over the next
12 to 18 months. K&H's liquidity remains stable with liquid
assets accounting for 29.82% of the total assets at end-H1 2015.

Budapest Bank

The affirmation of Budapest Bank's B2 long-term deposit ratings
with a stable outlook are based on (1) the affirmation of its b2
BCA and (2) no further rating uplift from Moody's Advanced LGF
analysis and assumption of low government support.

The affirmed b2 BCA reflects the bank's high asset risk, as well
as moderate capital adequacy, profitability and liquidity.

Loan book quality has stabilized and will likely improve modestly
in the next 12 to 18 months benefiting from the growing economy,
completion of settlements with the retail borrowers and
conversion of FX mortgages into Hungarian forints. The loss
reported in 2014 negatively affected Budapest Bank's
capitalization, with the bank's Tier 1 ratio declining to 12.9%
as of December 2014 from 18.6% as of December 2013. The bank's
return to profitability and only modest lending growth will
likely result in a moderate improvement in the capital adequacy
over the next 12 to 18 months. Budapest Bank is mainly funded by
customer deposits, which accounted for 75% of its non-equity
funding as of year-end 2014. The bank's liquidity cushion is
satisfactory at 28% of the total assets.

-- WHAT COULD MOVE THE RATINGS UP/DOWN

An upgrade of Hungary's sovereign ratings and/or improvements in
the country's Macro Profile and the affected banks' asset
quality, profitability and capitalization, could have positive
rating implications.

The ratings will experience a negative pressure if the outlook on
the sovereign ratings is changed to stable and/or there is a
deterioration the country's Macro Profile and/or the banks' asset
quality, capitalization and profitability.

LIST OF AFFECTED CREDIT RATINGS

MFB Hungarian Development Bank Private Limited Company

-- Ba2 long-term foreign-currency deposit rating affirmed with a
    positive outlook (from stable)

-- Ba1 long-term foreign-currency senior unsecured debt rating
    affirmed with a positive outlook (from stable)

OTP Bank NyRt


-- Ba2 long-term foreign-currency deposit rating affirmed with a
   positive outlook (from stable)

OTP Jelzalogbank Zrt. (OTP Mortgage Bank Ltd.)

-- Ba2 long-term foreign-currency deposit rating affirmed with a
    positive outlook (from stable)

Erste Bank Hungary Zrt.

-- Long-term local and foreign-currency deposit ratings upgraded
    to B2 with stable outlook from B3 (stable)

-- Baseline Credit Assessment upgraded to caa1 from caa2

-- Adjusted Baseline Credit Assessment upgraded to b2 from b3

-- Long-term Counterparty Risk Assessment upgraded to Ba2(cr)
    from Ba3(cr)

-- Not-Prime(cr) short-term CR Assessment affirmed

Kereskedelmi & Hitel Bank Rt.

-- Ba3 long-term local and foreign-currency deposit ratings
    affirmed with stable outlook

-- b2 Baseline Credit Assessment affirmed

-- ba3 Adjusted Baseline Credit Assessment affirmed

-- Counterparty Risk Assessment of Baa3(cr) / P-3(cr) affirmed

Budapest Bank Rt.

-- B2 long-term local and foreign-currency deposit ratings
    affirmed with stable outlook

-- b2 Baseline Credit Assessment and Adjusted Baseline Credit
    Assessment affirmed

-- Counterparty Risk Assessment of Ba3(cr) / Not-Prime(cr)
    affirmed


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I R E L A N D
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CLERY'S: High Court Approves Survival Scheme, 130 Jobs Saved
------------------------------------------------------------
Mary Carolan at The Irish Times reports that a survival scheme
preserving 130 of 200 jobs has been approved by the High Court
for Clery's, the company operating Best menswear stores, along
with other fashion stores, across Ireland.

Best's largest creditor, Allied Irish Banks, has agreed to write
down more than EUR9 million off its EUR13.5 million debt and will
continue funding the company after it exits examinership today,
Nov. 13, The Irish Times relates.

Preferential and unsecured creditors will respectively get 10%
and 5% of what they are owed while the remaining debt will be
extinguished, The Irish Times discloses.

Ms. Justice Caroline Costello confirmed the survival scheme after
refusing to direct examiner Declan McDonald of Price
WaterhouseCooper to give the Revenue Commissioners detailed
information underlying cash flow projections plus a detailed
breakdown of the basis for some EUR289,000 fees agreed, The Irish
Times relays.


EPHIOS BONDCO: S&P Assigns 'B+' CCR & Rates EUR1.485BB Notes 'B+'
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' long-term
corporate credit rating to Europe-based clinical laboratory
operator Ephios Bondco PLC.  The outlook is stable.

At the same time, S&P assigned an issue rating of 'B+' to Ephios
Bondco's EUR1.485 billion senior secured notes due in 2022.  The
recovery rating on the notes is '4', indicating S&P's expectation
of average (30%-50%) recovery, in the higher half of the range,
in the event of a payment default.

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

S&P's ratings on Ephios Bondco PLC and Ephios Holdco II PLC
reflect S&P's view that Cinven, the private equity firm that owns
them, has completed the acquisitions of France-based Labco S.A.
and Germany-based Synlab Holding GmbH successfully.  S&P expects
both the acquired entities to be consolidated under Ephios Bondco
PLC.

Ephios Holdco II PLC is a higher-level entity in the
organizational structure that is included within the perimeter of
the group credit profile (GCP).  S&P considers Ephios HoldCo II
to be a purely financing vehicle for the group.  S&P equalizes
its rating on Ephios Holdco II PLC with that on Ephios Bondco
PLC, which has a GCP of 'b+'.

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

   -- It is a financing subsidiary that issues senior unsecured
      notes.

   -- It is owned by Cinven which includes indirect ownership
      along with minority investors.

   -- It shares the same name as Ephios Bondco PLC.

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

S&P's base-case assumptions for Ephios Bondco have not changed
materially since S&P extended its preliminary ratings on Sept.
11, 2015.  S&P continues to project that Ephios Bondco's adjusted
debt-to-EBITDA ratio will be above 5.0x in 2015-2016.  S&P's
leverage calculation for 2015 includes the EUR1,485 million
senior secured notes, EUR375 million senior unsecured notes, and
EUR145 million of adjustments for operating leases and
postretirement obligations.

S&P also expects that Ephios Bondco' free operating cash flow
(FOCF) will be about EUR50 million-EUR130 million in 2015-2016,
reflecting capital expenditure (capex) of EUR40 million-EUR50
million in 2015-2016.  Given the long-dated maturity of Ephios
Bondco's senior secured notes and Ephios Holdco's senior
unsecured notes and the group's acquisitive strategy, leverage is
more likely to improve through higher profitability than debt
reduction.  S&P also estimates that the group will maintain an
average Standard & Poor's-adjusted fixed-charge coverage of about
2.2x over the next two years, which supports the rating.

The stable outlook on Ephios Bondco PLC and Ephios Holdco II PLC
reflects S&P's view of Labco and Synlab's sound positions as
consolidators of small companies in a growing underlying market.
It also factors in the companies' cash-generating capacity, as
further potential external growth opportunities could be turned
around quickly by streamlining costs and overheads.  S&P
considers that fixed-charge coverage of about 2.2x on a
sustainable basis should enable the company to adequately service
its cash interest and rent charges.  S&P views this level of debt
service coverage, combined with stable and improving free cash
flow generation, as commensurate with its 'B+' rating.

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

S&P could lower the rating if the group experiences a significant
decline in its operating performance and profitability, which
could cause S&P to review its assessment of its business risk
profile.  The most likely reason for such a decline would be
deteriorating operating margins, because of Synlab and

Labco's inability to effectively integrate or following a loss of
key accounts.  S&P could also lower the rating if the companies'
ability to comfortably service their fixed costs deteriorates.
This could occur as a result of lower realizable growth during
the next few years or a more aggressive financial policy.


MCWILLIAM PARK: Unsustainable Debt Prompts Examinership
-------------------------------------------------------
RTE News reports that an examiner has been appointed to the
McWilliam Park Hotel in Claremorris, Co Mayo following an
application in the High Court.

Kieran Wallace of KPMG has been appointed interim examiner, RTE
News discloses.

The four-star hotel said it will continue to operate as usual
during the period of examinership, with all weddings, functions
and concerts proceeding as planned, RTE News relates.

The McWilliam Park Hotel, as cited by RTE News, said it will
honor all bookings in full, and that all services will continue
to operate as before and all gift vouchers can be redeemed as
normal.

The directors applied for the appointment of an examiner due to
the unsustainable level of debt being carried by the company, RTE
News relays.

According to RTE News, the hotel said it has traded well during
the downturn but it has the burden of significant pre-downturn
debt.

McWilliam Park Hotel opened in 2006.  The 103-bedroom hotel
employs 40 full-time and up to 80 part-time staff members.



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


ALITALIA-LINEE: Jan. 18 EAS Expressions of Interest Deadline Set
----------------------------------------------------------------
Proff Avv. Stefano Ambrosini, Prof. Avv. Gianluca Brancadoro and
Proff. Dott. Giovanni Fiori, the Extraordinary Commissioners of
Alitalia-Linee Aeree Italiane, S.p.A., announced that the Company
offers for sale its stake in Egyptian Aviation Services.

Expressions of interest in the purchase of the shareholding must
be submitted by noon (Italian time), on January 18, 2016, in a
sealed envelope to:

          Alitalia-Linee Aeree Italiane, S.p.A. in a.s.
          Largo Amilcare Ponchielli n. 6
          00198 Rome

The stake for sale corresponds to 5.83% of Alitalia-Linee's share
capital.



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


BRAAS MONIER: S&P Raises CCR to 'BB-', Outlook Stable
-----------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Luxembourg-based building materials manufacturer
Braas Monier Building Group S.A. to 'BB-' from 'B+'.  The outlook
is stable.

At the same time, S&P affirmed the short-term ratings on Braas
Monier at 'B'.

In addition, S&P raised to 'BB-' from 'B+' the issue ratings on
the EUR315 million senior secured floating-rate debt instruments,
EUR100 million revolving credit facility (RCF), and EUR200
million term loan issued by Braas Monier.  The recovery rating on
these facilities is '4', indicating S&P's expectation of average
(30%-50%) recovery in the event of a payment default.

The upgrade reflects S&P's view that Braas Monier's management
has improved the group's profitability, including significantly
reducing its cost base, both in terms of fixed and labor costs.
S&P now forecasts the group will have adjusted EBITDA margins of
17%-18%. Braas Monier's improved operating efficiency and
profitability has led us to improve our assessment of its
business risk profile to "fair" from "weak".

S&P also notes that Monier Holdings S.C.A.'s stake in Braas
Monier has recently reduced to slightly less than 40%, but that
it continues to be the group's largest shareholder.  S&P views
Monier Holdings S.C.A as a financial sponsor because private
equity firms hold majority ownership in that entity.  However,
S&P also acknowledges that publicly traded companies tend to
exercise less aggressive financial policies than firms owned
entirely by private equity interests.  S&P notes that five out of
the nine directors on Brass Monier's board are independent and
would likely be in a position to protect the interests of other
stakeholders in the business against any potentially aggressive
recommendations from its largest shareholder.  Consequently, S&P
has revised its assessment of the group's financial policy upward
to neutral from 'FS-5'.

Management has also made a significant effort to increase cash
pool efficiency, which has freed up previously trapped cash and
has resulted in more funds located in the group's central cash
pool master accounts.  S&P is changing its approach with regard
to surplus cash and now consider about EUR40 million to be
restricted or tied to day-to-day operations.  S&P net the rest of
the group's (surplus) cash against debt under our standard
adjustments.

Due to the improved margins and more-moderate financial policy --
including lower leverage and more cash being held on the balance
sheet -- the group's adjusted core and supplemental credit ratios
have strengthened.  S&P is therefore revising the financial risk
profile to "significant" from "aggressive".

S&P applies a negative adjustment under its comparable rating
analysis to reflect its view that Braas Monier's business risk
profile is at the lower end of the "fair" category.

Under S&P's base case for 2016, it assumes:

   -- Flat revenue growth, with volume declines in Asia-Pacific
      dampening the slightly positive growth in most of Braas
      Monier's core European markets;

   -- Adjusted EBITDA margin of about 17%-18%;

   -- A focus on organic growth, but potentially supplemented by
      intelligent bolt-on acquisitions;

   -- Corporate capital expenditure (capex) of up to EUR60
      million; and

   -- Cash dividends of about 25%-50% of the group's net profit
      (as guided by management).

Based on these assumptions, S&P arrives at these credit measures
in 2015-2016:

   -- Standard & Poor's-adjusted debt of about 3.5x; and
   -- Funds from operations (FFO) to debt of 20%-21%.

The stable outlook reflects S&P's view that Braas Monier should
continue to preserve its leading market position and recent
margin gains due to its more efficient cost base.

S&P could lower the ratings if Braas Monier failed to sustain
recently improved profitability at the levels S&P forecasts under
its base case.  S&P might also consider lowering the ratings if
the group's credit metrics weakened to a level more commensurate
with an "aggressive" financial risk profile, specifically debt to
EBITDA of more than 4x or FFO to debt of less than 20%.  This
could be caused by several factors: for example, the group's core
markets weakening materially below S&P's base case, or Braas
Monier becoming less able to pass on increased prices
particularly in cement and energy.

S&P could raise the ratings on Braas Monier if the group were to
further reduce leverage and sustain credit metrics commensurate
with an "intermediate" financial risk profile, specifically debt
to EBITDA of less than 3x and FFO to debt of more than 30%.  S&P
could consider raising the ratings if, over the medium term, the
group were to exhibit profitability that was more stable than the
high volatility shown previously.



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


DELOPORTS LLC: Fitch Assigns 'BB-(EXP)' Rating to RUB3BB Bond
-------------------------------------------------------------
Fitch Ratings has assigned LLC DeloPorts' planned RUB3 bil. bond
a 'BB-(EXP)' expected rating.  The Outlook is Stable.

Simultaneously, Fitch has affirmed DeloPorts' Issuer Default
Rating (IDR) at 'BB-' with a Stable Outlook.

The affirmation of the IDR follows a review of Deloports'
expected performance with the addition of the planned bond.  The
consolidated credit profile of the group, which we assessed at
'BB', has become somewhat weaker on the basis of Fitch's updated
projections due to lower container volumes and lower grain
tariffs forecasted from 2015 onwards.  Debt/EBITDA is now
forecasted to peak at 2.6x in 2017 under Fitch's rating case,
which is just over the negative rating trigger of 2.5x, and
anticipated to decline from thereon.  These forecasts indicate
limited headroom in the rating.  However, Fitch's rating case is
regarded as conservative and the affirmation is based on YTD
performance in 2015 and management's expectation for the whole
year, which are within Fitch's expectations.

DeloPorts' rating is notched down from the consolidated profile
by one notch in accordance with Fitch's 'Parent and Subsidiary
Rating Linkage' criteria.  This reflects the holding company
debt's structural subordination and the legal ties between
DeloPorts and its subsidiaries that are not sufficiently strong.
The bond's expected rating is aligned with that of DeloPorts.

KEY RATING DRIVERS

Volume Risk - Weaker

DeloPorts' concentrated exposure to one commodity (grain), short-
term contracting and dynamic competitive environment underpin the
weaker assessment.  DeloPorts' two key business segments are the
handling of containers (40% of EBITDA in 2014) and the export of
Russian grain (52% of EBITDA in 2014).  The two segments are
characterized by different volume drivers, which balance each
other out to some extent.  The container segment is mostly
import-oriented and throughput is diversified, while the grain
segment is fully export-oriented and relies on one commodity
type.

Economic growth and purchasing power are currently under stress
and based on 9M15 results, DeloPorts' container volumes have
fallen by 23% (in TEUs; 20-foot equivalent units), more than the
16% decline assumed under Fitch's rating case for 2015.

Conversely, grain export volumes in 9M15 were better than Fitch's
expectations, albeit still lower than in 2014, which was an
exceptionally good harvest year.  Grain production may be
affected by weather conditions and exports are subject to
Russia's policy decisions.  Fitch considers these drivers to be
less predictable and more volatile than the diversified trade in
the container segment.  However, exports are currently beneficial
to Russian producers compared with domestic sales following
severe rouble devaluation in 2014.

Price Risk - Midrange

In 2013 price regulation was eliminated in most Russian ports,
giving DeloPorts the ability to manage tariffs independently.
However, one of its subsidiaries, NUTEP, has not been formally
excluded from the register of natural monopolies in transport.
Tariffs have been relatively stable post de-regulation, although
in 2015 DeloPorts lowered its grain handling tariff by about 15%.
All tariffs are currently set in US dollars.  A stronger
assessment for Price risk was precluded due to the limited
history of tariff and revenue stability and lack of minimum price
guarantees.

Infrastructure Development and Renewal - Stronger

DeloPorts' assets are greenfield and the current capacities of
both container terminal and grain terminal are sufficient to
accommodate increased volumes.  No significant maintenance capex
is expected over the medium term.  Both grain and container
terminals aim to increase their capacity.  In 2H15, DeloPorts
announced that it is going ahead with the expansion project to
build Berth 38 at NUTEP that will be able to receive larger
vessels.  Fitch understands that this investment can be delayed,
if needed.

Debt Structure - Midrange

Debt structure is still regarded as Midrange for consolidated
group with the addition of the planned RUB3 bil. bond.  The bond
will represent about 35% of the consolidated group's debt at
YE15, with the other 65% made up of USD bank loans at the
operating subsidiaries KSK and NUTEP.

The group's overall debt structure becomes somewhat weaker with
the bullet repayment style and associated refinancing risk, as
well as the weakening of the covenant package.  The bond will be
unsecured and will have no covenants, apart from bondholders'
right to put the bond back in case of non-payment within 30 days
by DeloPorts or any of the companies consolidated within the
group (i.e. NUTEP, TOS, KSK) of its bank loan obligations if the
delayed principal amount is above USD10 mil.  This is essentially
a cross-default feature with the existing bank obligations of
NUTEP and KSK, signifying some degree of legal ties between the
parent and the subsidiaries, although it would only be effective
after several quarters of missed bank loan repayments.  The exact
maturity of the bond is not known at this stage, but is two to
three years based on company's expectations.  The re-financing
risk of the bond in a few years' time is considered manageable.

Positively, the bond will reduce the company's exposure to
floating interest rates and diversify the company's debt in terms
of currency exposure.

The existing debt of the subsidiary companies consists of senior
secured loan facilities, maturing in 2016 (KSK) and 2018 (NUTEP).
There is a full exposure to floating interest rate (USD LIBOR)
under both loans.  The loans are structured as corporate secured
debt with some terms and conditions differing across the two
loans.  Debt/EBITDA covenant is 4.5x for NUTEP and 5x for KSK.
Foreign currency risk on subsidiary debt is naturally hedged as
all tariffs are denominated in US dollars.  There is a short-term
currency conversion risk as most of the revenues are collected in
roubles (based on current exchange rates) and then converted to
US dollars within a short time frame.

Debt Service

Total debt/EBITDA is expected to reach 1.8x at YE15 with the
issuance of the new bond under Fitch's rating case, which
forecasts EBITDA of USD71 million.  The company's maximum
leverage is now forecast to be significantly higher than
previously anticipated (2.6x in 2017 vs 1.45x) under the revised
Fitch rating case, which incorporates lower container volumes and
lower grain tariffs from 2015, as well as RUB/USD exchange rate
of 70, among other stresses.  As indicated by the conservative
Fitch rating case (which assumes a 24% decline in 2016 EBITDA
levels compared to 2015 expectations), 2016 may also be a stress
year due to high debt service payments as the KSK loan will fully
amortize by the end of the year and high interest payments will
start under the new rouble bond.

RATING SENSITIVITIES

Further new debt issued by DeloPorts that would result in a
Weaker debt structure assessment could be negative for the
rating. Likewise, consolidated debt/EBITDA close to or exceeding
2.5x would result in negative rating action.

Adverse policy decisions on grain exports or economic environment
in Russia deteriorating significantly beyond Fitch's current
expectations could be negative for the rating.  Finally, if the
company does not monitor its foreign currency exposure
conservatively, this may also result in negative rating action.

Rating upside potential is currently limited.  Fitch do not
expect improvement in the Russian economy this year, as indicated
by the Negative Outlook on Russia's sovereign rating.

SUMMARY OF CREDIT

LLC DeloPorts is a privately-held Russian holding company that
owns and operates several stevedoring assets in the largest
Russian port of Novorossiysk.  Its two main subsidiaries are the
container terminal NUTEP (where DeloPorts holds 100%) and the
grain terminal KSK (where Deloports holds 75% - 1 share).


MEZHREGIONBANK LLC: Placed Under Provisional Administration
-----------------------------------------------------------
The Bank of Russia, by its Order No. OD-3101 dated November 10,
2015, revoked the banking license of Moscow-based credit
institution Commercial Bank Mezhregionbank, LLC from November 10,
2015.

The Bank of Russia took such an extreme measure -- revocation of
the banking license -- because of the credit institution's
failure to comply with federal banking laws and Bank of Russia
regulations, capital adequacy below 2%, decrease in equity
capital below the minimal amount of the authorized capital
established as of the date of the state registration of the
credit institution, and taking account of repeated application
over the past year of supervisory measures envisaged by the
Federal Law "On the Central Bank of the Russian Federation (Bank
of Russia)".

CB MRB LLC implemented high-risk lending policy connected with
placement of funds into low-quality assets.  As a result of
meeting the supervisor's requirements on creating provisions
adequate to the risks assumed, the credit institution lost its
equity capital.

The management and owners of the bank did not take measures to
normalize its activities.  In these circumstances, pursuant to
Article 20 of the Federal Law "On Banks and Banking Activities",
the Bank of Russia revoked the banking license from CB MRB LLC.

The Bank of Russia, by its Order No. OD-3102 dated November 10,
2015, appointed a provisional administration to CB MRB LLC for
the period until the appointment of a receiver pursuant to the
Federal Law "On Insolvency (Bankruptcy)" or a liquidator under
Article 23.1 of the Federal Law "On Banks and Banking
Activities".  In accordance with federal laws, the powers of the
credit institution's executive bodies are suspended.

CB MRB LLC is a member of the deposit insurance system.  The
revocation of banking license is an insured event envisaged by
Federal Law No. 177-FZ "On Insurance of Household Deposits with
Russian Banks" regarding the bank's obligations on deposits of
households determined in accordance with the legislation.  This
Federal Law provides for the payment of insurance indemnity to
the bank's depositors, including individual entrepreneurs, in the
amount of 100% of their balances but not exceeding the total of
1.4 million rubles per depositor.

According to the financial statements, as of October 1, 2015, CB
MRB LLC ranked 502nd by assets in the Russian banking system.


REGIONAL BANK: Placed Under Provisional Administration
------------------------------------------------------
The Bank of Russia, by its Order No. OD-3097 dated November 10,
2015, revoked the banking license of Moscow-based credit
institution public joint-stock company Regional Bank for
Development of PHSC RD from November 10, 2015.

The Bank of Russia took such an extreme measure -- revocation of
the banking license -- because of the credit institution's
failure to comply with federal banking laws and Bank of Russia
regulations, established instances of material unreliability of
financial statements, inability to satisfy its creditors' claims
on monetary liabilities, and taking into account the repeated
application over the past year of measures envisaged by the
Federal Law "On the Central Bank of the Russian Federation (Bank
of Russia)".

PJSC RBD placed funds into low-quality assets and did not create
adequate loan loss provisions commensurate with risks assumed.
Due to unsatisfactory quality of assets and subsequent
insufficient cash flows, the credit institution failed to timely
honor its obligations to creditors.  The bank submitted to the
supervisor grossly unreliable financial statements, which
concealed grounds for initiating measures to revoke the banking
license.  The management and owners of the bank have not taken
measures required to normalize its activities.  In these
circumstances, guided by Article 20 of the Federal Law "On Banks
and Banking Activities", the Bank of Russia performed its
obligation and revoked the banking license from PJSC RBD.

The Bank of Russia, by its Order No. OD-3098 dated November 10,
2015, appointed a provisional administration to PJSC RBD for the
period until the appointment of a receiver pursuant to the
Federal Law "On the Insolvency (Bankruptcy)" or a liquidator
under Article 23.1 of the Federal Law "On Banks and Banking
Activities".  In accordance with federal laws, the powers of the
credit institution's executive bodies are suspended.

PJSC RBD is a member of the deposit insurance system.  The
revocation of the banking license is an insured event as
stipulated by Federal Law No. 177-FZ "On the Insurance of
Household Deposits with Russian Banks" in respect of the bank's
retail deposit obligations, as defined by law.  The said Federal
Law provides for the payment of indemnities to the bank's
depositors, including individual entrepreneurs, in the amount of
100% of the balance of funds but not more than 1.4 million rubles
per one depositor.

According to its financial statements, as of October 1, 2015,
PJSC RBD ranked 280th by assets in the Russian banking system.


REGIONAL SAVINGS: Placed Under Provisional Administration
---------------------------------------------------------
The Bank of Russia, by its Order No. OD-3099 dated November 10,
2015, revoked the banking license of Moscow-based credit
institution Commercial Bank Regional Savings Bank, LLC, or CB RSB
LLC, from November 10, 2015.

The Bank of Russia took such an extreme measure -- revocation of
the banking license -- because of the credit institution's
failure to comply with federal banking laws and Bank of Russia
regulations, capital adequacy below 2%, decrease in equity
capital below the minimal amount of the authorized capital
established as of the date of the state registration of the
credit institution, and taking account of repeated application
over the past year of supervisory measures envisaged by the
Federal Law "On the Central Bank of the Russian Federation (Bank
of Russia)".

The supervision over the activity of CB RSB LLC revealed
unsatisfactory quality of its assets.  Adequate credit risk
assessment at the supervisor's request revealed the complete loss
of equity capital by the credit institution.  The management and
owners of the bank did not take measures to normalize its
activities.  In these circumstances, pursuant to Article 20 of
the Federal Law "On Banks and Banking Activities", the Bank of
Russia revoked the banking license from CB RSB LLC.

The Bank of Russia, by its Order No. OD-3100 dated November 10,
2015, appointed a provisional administration to CB RSB LLC for
the period until the appointment of a receiver pursuant to the
Federal Law "On Insolvency (Bankruptcy)" or a liquidator under
Article 23.1 of the Federal Law "On Banks and Banking
Activities".  In accordance with federal laws, the powers of the
credit institution's executive bodies are suspended.

CB RSB LLC is a member of the deposit insurance system.  The
revocation of banking license is an insured event envisaged by
Federal Law No. 177-FZ "On Insurance of Household Deposits with
Russian Banks' regarding the bank's obligations on deposits of
households determined in accordance with the legislation.  This
Federal Law provides for the payment of insurance indemnity to
the bank's depositors, including individual entrepreneurs, in the
amount of 100% of their balances but not exceeding the total of
1.4 million rubles per depositor.

According to the financial statements, as of October 1, 2015, CB
RSB LLC ranked 329th by assets in the Russian banking system.


RUSSIAN AGRICULTURAL: To Continue Relying on Gov't, Moody's Says
----------------------------------------------------------------
Moody's Investors Service says it expects Russian Agricultural
Bank (RusAg, Ba2 negative) to continue receiving capital support
from the government given its projection of bottom-line losses
through to end-2016.

This support offsets the fully government-owned RusAg's remit for
providing financial services to agribusiness companies, which has
historically driven its lower levels of profitability and weaker
asset quality than most of its peers.

However, Moody's expects that agribusiness companies will be less
sensitive to the prolonged deterioration in Russia economic
conditions, thus limiting the deterioration in RusAg's asset
quality. This is a result of the Russian government's embargo, as
of August 2014, on imports of various food products from the EU,
US and other countries including Norway, Australia and Canada.
The rating agency notes that this reinforces the strategic
importance of local agricultural producers and reduces market
competition from foreign suppliers.

Nevertheless, RusAg continues to have significant legacy problem
loans which lack sufficient provision coverage. The rating agency
projects that RusAg's net interest margin and consequently pre-
provision profitability will recover gradually in 2016,
reflecting a downward trend in the Central Bank of Russia's key
interest rate, alleviating pressure on funding costs. However,
this improvement in earnings is unlikely to fully absorb the
bank's heavy loan-loss provisioning charges, driving Moody's
forecasts that RusAg will report bottom-line losses through to
end-2016.


RUSSIAN SLAVIC: Placed Under Provisional Administration
-------------------------------------------------------
The Bank of Russia, by its Order No. OD-3095 dated November 10,
2015, revoked the banking license of Moscow-based credit
institution Commercial Bank Russian Slavic Bank or JSC BANK RSB
24 from November 10, 2015.

The Bank of Russia took such an extreme measure -- revocation of
the banking license -- because of the credit institution's
failure to comply with federal banking laws and Bank of Russia
regulations, repeated violations within a year of the
requirements of Articles 6, 7 (except for Clause 3 of Article 7)
and 7.2 of the Federal Law "On Countering the Legalisation
(Laundering) of Criminally Obtained Incomes and the Financing of
Terrorism", and application of supervisory measures envisaged by
the Federal Law "On the Central Bank of the Russian Federation
(Bank of Russia)", taking account of a real threat to creditors'
and depositors' interests.

JSC BANK RSB 24 implemented high-risk lending policy and failed
to create loan loss provisions adequate to the risks assumed.
Besides, the bank did not comply with the requirements of the
legislation on anti-money laundering and the financing of
terrorism with regard to notification of the authorized body
about operations subject to obligatory control and the procedure
for customer identification when conducting non-cash settlements
on their behalf.  At the same time, the credit institution was
involved in dubious large-scale transit operations.

The Bank of Russia, by its Order No. OD-3096 dated November 10,
2015, appointed a provisional administration to JSC BANK RSB 24
for the period until the appointment of a receiver pursuant to
the Federal Law "On Insolvency (Bankruptcy)" or a liquidator
under Article 23.1 of the Federal Law "On Banks and Banking
Activities".  In accordance with federal laws, the powers of the
credit institution's executive bodies are suspended.

JSC BANK RSB 24 is a member of the deposit insurance system.  The
revocation of banking license is an insured event envisaged by
Federal Law No. 177-FZ "On Insurance of Household Deposits with
Russian Banks" regarding the bank's obligations on deposits of
households determined in accordance with the legislation.  This
Federal Law provides for the payment of insurance indemnity to
the bank's depositors, including individual entrepreneurs, in the
amount of 100% of their balances but not exceeding the total of
1.4 million rubles per depositor.

According to the financial statements, as of October 1, 2015, JSC
BANK RSB 24 ranked 124th by assets in the Russian banking system.



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


EMPRESAS HIPOTECARIO 3: Fitch Hikes Cl. B Notes Rating to 'Bsf'
---------------------------------------------------------------
Fitch Ratings has upgraded Empresas Hipotecario TDA CAM 3, FTA's
notes, as:

  EUR32.9 mil. Class A2 (ES0330876014): upgraded to 'BBBsf' from
   'BBsf'; Outlook Stable

  EUR29.3 mil. Class B (ES0330876022): upgraded to 'Bsf' from
   'B-sf'; Outlook Stable

  EUR30.0 mil. Class C (ES0330876030): affirmed at 'CCsf'; RE
   (Recovery Estimate) 15%

Empresas Hipotecario TDA CAM 3, FTA is a cash-flow securitization
of loans granted to Spanish small and medium enterprises (SMEs)
by Caja de Ahorros del Mediterraneo, which merged with Banco de
Sabadell in 2011.

KEY RATING DRIVERS

The upgrades reflect the transaction's positive performance.
Credit enhancement based on performing loans has increased to 58%
from 33% for the class A2 notes and 21% from 5% for the class B
notes during the past 12 months. 90 days delinquencies have
decreased to 0.5% as of September 30, 2015 from 3.0% as of 20
September 2014.

The 'CCsf' rating on the class C notes reflects their under-
collateralization due to their subordinated position in the
capital structure.  Therefore, the repayment of the class C notes
is mainly dependent on recoveries from defaulted assets.

The reserve fund was fully depleted in July 2012.  The
transaction had a large principal deficiency ledger (PDL) balance
of EUR14 million as of Oct. 28, 2015.  However, since Sept. 2013
the PDL has decreased from EUR20 milliion.  A swap provides an
additional layer of protection providing a guaranteed 50bp excess
spread based on a notional equal to the outstanding performing
portfolio balance.

The transaction's ratings are capped at 'Asf' as the depletion of
the reserve fund means that there is no source of liquidity.
Payment interruption is therefore highly likely if the collateral
servicer (Banco de Sabadell) were to default.

Current defaults account for 47.9% of the outstanding portfolio
balance.  Additionally, Fitch views as additional risks the high
obligor concentration of the portfolio, with the top 10 obligors
accounting for 40% of the outstanding balance, and the exposure
to real estate obligors that accounts for 47% of the outstanding
portfolio.

RATING SENSITIVITIES

A 20% increase of the default probability could lead to a
downgrade of the class A2 and B notes of up to one notch and
would have no rating impact on the other classes.

DUE DILIGENCE USAGE

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

DATA ADEQUACY

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

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

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



===========
S W E D E N
===========


BRAVIDA HOLDINGS: S&P Raises LT Corporate Credit Rating to 'BB-'
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Sweden-based multitechnical services provider
Bravida Holding AB to 'BB-' from 'B'.  At the same time, S&P
removed the rating from CreditWatch with positive implications,
where it had placed it on Oct. 19, 2015.

S&P subsequently withdrew the long-term rating at Bravida's
request.  S&P also withdrew its 'B' issue rating on the senior
secured notes because they have been fully repaid.

The outlook on the long-term rating was stable at the time of the
withdrawal.

The upgrade follows Bravida's successful IPO on the Stockholm
Stock Exchange and subsequent debt reduction.

Bravida used its new senior bank facility to repay existing
senior secured notes.  In addition, all outstanding shareholder
loans and payment-in-kind notes have been repaid, and Bravida's
financial sponsor owner, Bain Capital, has reduced its
shareholding to approximately 56.2%.  As a result of the debt
repayments and Bain Capital's decreased stake, S&P has revised
its assessment of Bravida's financial risk profile upward to
"aggressive" from "highly leveraged."

In addition, S&P has revised its assessment of Bravida's
financial policy upward to "FS (financial sponsor)-5" from
"FS-6", because S&P perceives the risk of releveraging as low.
The decrease of Bain Capital's shareholding and the debt
reduction should, in S&P's opinion, prompt Bravida to pursue a
more moderate and predictable financial policy, particularly with
respect to shareholder returns.  However, the uncertainty on the
company's financial policy and the lack of a clear indication of
targeted leverage metrics has led S&P to view the financial
policy modifier as "FS-5" rather than "FS-4."  This is despite
S&P's anticipation that its adjusted ratios of funds from
operations (FFO) to debt and debt to EBITDA for Bravida will be
in the "significant" financial risk category in 2016 and 2017.

At the time of withdrawal, the "aggressive" financial risk
profile reflected S&P's view that Bravida's Standard & Poor's-
adjusted FFO-to-debt ratio would be above 15% and that adjusted
leverage would be below 4x for the fiscal year ending Dec. 31,
2015, then moving toward 25% and 3x by year-end 2016,
respectively.

S&P's assessment of Bravida's business risk profile as "fair"
remained unchanged at the time of withdrawal.



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


KYIV CITY: Fitch Lowers LT Issuer Default Rating to 'D'
-------------------------------------------------------
Fitch Ratings has downgraded the Ukrainian City of Kyiv's Long-
term foreign currency Issuer Default Rating to 'D' (Default) from
'C'.

Under EU credit rating agency (CRA) regulation, the publication
of International Public Finance reviews is subject to
restrictions and must take place according to a published
schedule, except where it is necessary for CRAs to deviate from
this in order to comply with their legal obligations.

Fitch interprets this provision as allowing us to publish a
rating review in situations where there is a material change in
the creditworthiness of the issuer that Fitch believe makes it
inappropriate for it to wait until the next scheduled review date
to update the rating or Outlook/Watch status.  In this case the
deviation was caused by the missed payment on the city's
eurobond.

KEY RATING DRIVERS

The following are the key drivers for the rating action and their
relative weights:

HIGH

The downgrade of Kyiv's Long-term foreign currency IDR follows
missed payment on the city's USD250 million eurobond and the
subsequent activation of the cross default clause on the USD300
million eurobond.  The city introduced an interim moratorium on
any payments to its eurobond holders on Nov. 6, 2015.  According
to the original schedule Kyiv's USD250 million eurobond final
maturity date was Nov. 6, 2015, and its USD300 million eurobond
July 11, 2016.

Fitch treats the introduction of the interim payment moratorium
on the city's eurobonds as defaults in accordance with its
distressed debt exchange (DDE) criteria, leading to today's
downgrade of the city's Long-term and Short-term foreign currency
IDRs to 'D' from 'C'.

The introduced payment moratorium will be valid until the
eurobonds' conditions are amended and the exchange offer
accepted. The right for the city to suspend the repayment of its
eurobonds was granted by Ukraine's parliament in May 2015.  The
city was mandated to extend the maturity of its external debt as
part of a broader exercise to support Ukraine's public sector
finances and external liquidity following the introduction of the
IMF's Extended Fund Facility for Ukraine in March 2015.

Additionally, the City of Kyiv extended the maturities of its
domestic bonds, which led to the recent downgrade of its Long-
term local currency IDR.  Prior to that Ukraine had missed the
payment on its eurobond, which led to a recent sovereign
downgrade.

As the city's all four outstanding bond obligations are in
default, the Long-term local currency IDR has also been
downgraded to 'D' from 'RD'.  Simultaneously Fitch has withdrawn
the City of Kyiv's Short-term foreign currency IDR as it is no
longer considered by Fitch to be relevant to the agency's
coverage because the city is no longer issuing short-term
external debt.

MEDIUM

Fitch expects Kyiv's budgetary performance to remain volatile due
to the overall weakness of the sovereign's public finances, lower
predictability of fiscal policy and short planning horizon, all
exacerbated by a negative macro-economic trend.  Fitch expects
Ukraine's economy to contract 10% in 2015, negatively affecting
the city's fiscal capacity.

RATING SENSITIVITIES

Fitch will review the city's ratings once the debt exchange is
completed and sufficient information is available on Kyiv's
credit profile.  Kyiv's Long-term foreign- and local currency
IDRs will be upgraded after Fitch determines that the exchange
has been accepted.  The new ratings will be consistent with the
city's prospective credit profile.  However, the ratings will
likely remain low, given high country risks and Ukraine's 'CCC'
Country Ceiling.

The rating actions are:

   -- Long-term foreign currency IDR: downgraded to 'D' from 'C'
   -- Long-term local currency IDR: downgraded to 'D' from 'RD'
   -- Short-term foreign currency IDR: downgraded to 'D' from 'C'
      and withdrawn
   -- National Long-term rating: downgraded to 'D(ukr)' from
      'RD(ukr)'
   -- Senior unsecured eurobonds (ISIN XS0233620235,
      US225407AA34): downgraded to 'D' from 'C''
   -- Senior unsecured eurobonds (ISIN XS0644750027,
      US50154TAA34): downgraded to 'D' from 'C''
   -- Senior unsecured domestic bonds: affirmed at 'D'/'D(ukr)'


KYIV CITY: S&P Lowers Long-Term Issuer Credit Ratings to 'D'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its foreign and local
currency long-term issuer credit ratings on Kyiv to 'D' from 'CC'
(foreign currency) and from 'SD' (local currency).  S&P also
lowered its issue ratings on two foreign currency bonds
(XS0233620235 and XS0644750027) to 'D' from 'CC'.

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

In Kyiv's case, the deviation was prompted by the distressed
exchange offer in respect of its Eurobonds (XS0233620235 and
XS0644750027).

RATIONALE

On Nov. 5, 2015, Kyiv's City Council approved the conversion of
Kyiv's Eurobond debt (of both Eurobonds) from municipal debt into
central government debt.  The maturity date for the Eurobonds has
been extended by four years as part of the conversion: until 2019
for bonds due in 2015 (XS0233620235), and until 2020 for bonds
due in 2016 (XS0644750027).  The interest rate for both bond
issues is set at 7.75% per year.  The restructuring also suggests
a haircut of 25% of the bonds principal.

Kyiv's Eurobonds restructuring constitutes what S&P considers to
be a distressed debt restructuring.  Under S&P's criteria, it
views an exchange offer as tantamount to a default under these
conditions:

   -- The offer implies the investor will receive less value than
      the promise of the original securities; and

   -- S&P believes the offer is distressed, rather than purely
      opportunistic.

S&P considers that Kyiv's exchange offer satisfies these
conditions, even though investors may technically accept the
offer voluntarily.

Moreover, on Nov. 6, Kyiv missed the payment on US$250 million
Eurobond (XS0233620235), and S&P don't expect the city to pay
within the 10-day grace period.

S&P has therefore lowered its issuer credit ratings on Kyiv to
'D' and the ratings on Kyiv's two Eurobonds to 'D'.

S&P would raise the issuer credit ratings on Kyiv once the city
reaches an agreement with the bondholders and the restructuring
procedure is completed.  This post-default rating will reflect
S&P's forward-looking assessment of the city's individual credit
characteristics, as well as the sovereign cap.

At this point, S&P views Ukraine's institutional framework as
very volatile and underfunded, which S&P believes continues to
limit the city's very weak budgetary flexibility.  S&P also views
the city's economy as weak, although diversified.  Moreover, S&P
considers Kyiv to have weak budgetary performance, a very high
debt burden, and high contingent liabilities.  S&P's assessment
also incorporates the combination of its views on the city's weak
liquidity and very weak financial management.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable.  At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee
by the primary analyst had been distributed in a timely manner
and was sufficient for Committee members to make an informed
decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot table published in "Research
Update: Ukrainian City of Kyiv Ratings Lowered To 'CC';Outlook
Negative," on April 17, 2015.

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

RATINGS LIST

                                        Rating
                                        To        From
Kyiv (City of)
Issuer credit rating
  Foreign Currency                      D/--/--   CC/Neg./--
  Local Currency                        D/--/--   SD/--/--
Senior Unsecured
  Foreign Currency(XS0644750027)[1]     D         CC
  Foreign Currency(XS0233620235)[2]     D         CC
  Local Currency                        D         D

[1] Participant Kyiv Finance PLC.
[2] S&P first reinstated the rating at 'CC', as it had been
    automatically made inactive due to the bond having matured,
    and then we subsequently lowered the rating to 'D'.



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


COVENTRY AND RUGBY: Moody's Cuts 2040 Bond Rating to 'Ba2'
----------------------------------------------------------
Moody's Investors Service downgraded to Ba2 from Baa1 the ratings
for GBP407 million of 3.25% index-linked guaranteed secured bonds
due 2040 (the Bonds) issued by The Coventry and Rugby Hospital
Company plc (CRHC). This follows the University Hospitals
Coventry and Warwickshire NHS Trust (UHC) making a significant
financial deduction due to claimed unavailability. The outlook on
the ratings is developing. This concludes the review of the
ratings that was initiated on August 13, 2015.

RATINGS RATIONALE

"The rating downgrade was driven by the significant
unavailability deductions recently levied by the two procuring
NHS Trusts. The Trusts' unavailability claims are due to
perceived fire protection deficiencies. The Trusts took this
action despite a remedial works plan being agreed between CRHC
and the main procuring NHS Trust, which highlights a strained
relationship. CRHC's sizeable contractual cash reserves alleviate
any near term liquidity concerns. CRHC is disputing the Trusts'
unavailability claims, and has initiated the formal Dispute
Resolution Procedure provisions of the project agreement." says
Kunal Govindia, an Assistant Vice President - Analyst in Moody's
Infrastructure Finance Group and lead analyst for CRHC.

On November 6, the University Hospitals Coventry and Warwickshire
NHS Trust (UHC) made an GBP18.1 million deduction from its
quarterly payment. The Coventry and Warwickshire Partnership NHS
Trust (CWPT) also recently made an approximately GBP1.3 million
deduction from its quarterly payment. These deductions together
represent around 85% of the quarterly unitary payment. The
deductions are due to claimed unavailability as a result of
perceived fire protection deficiencies. UHC and CWPT claim that
the project agreement's (PA) safety condition is not being
complied with, and that the PA's definition of availability is
therefore not satisfied. CRHC are disputing the validity of the
unavailability claims and have initiated the PA's Dispute
Resolution Procedure (DRP) provisions.

CRHC's next debt service payment is on December 31, 2015 for
approximately GBP14million. Given the size of the deduction CRHC
will need to utilize its contractual cash reserves to pay debt
service. CRHC currently has a GBP14 million debt reserve reserve
account (DSRA) and GBP36 million of maintenance reserves (which
can be used to pay debt service once other liquidity sources have
been exhausted). In addition CRHC can pass deductions down to the
hard facilities management contractor Vinci up to the annual
liability cap of approximately GBP9 million. The construction
contractor Skanska believes any fire protection shortfalls are
not due to construction defects. CRHC is currently in discussions
with Vinci and Skanska regarding pass-through of deductions and
remedial work costs.

The Ba2 rating reflects as credit negatives (1) the significant
financial deductions made by the Trusts; (2) the strained project
relationships, as demonstrated by the Trusts taking this action
despite a remedial works plan being agreed; and (3) Vinci's
limited annual liability cap, given that unavailability
deductions might not be passed down to the construction
contractor.

The rating is supported by (1) CRHC has around GBP50 million in
debt service and maintenance reserves that can be used to pay
debt service, alleviating any immediate liquidity concerns; and
(2) our expectation of high recovery for lenders following any
default by CRHC.

The Bonds benefit from an unconditional and irrevocable guarantee
of scheduled principal and interest from MBIA UK Insurance
Limited (MBIA, rated Ba2). The underlying rating of Ba2 reflects
the credit risk of the Bonds absent the benefit of the guarantee
from MBIA. Since the underlying rating is equal to MBIA's rating,
the rating of the Bonds is determined by the underlying rating.

WHAT COULD CHANGE THE RATING UP/DOWN

Moody's could upgrade the rating if (1) satisfactory progress is
made on the remedial works program; and either (2) a settlement
agreement is reached between the Trusts and CRHC that results in
future cash deductions not being applied; or (3) the DRP outcome
is favorable to CRHC and results in the unavailability claims
being withdrawn.

Conversely, Moody's could downgrade the rating if (1) UHC and
CWPT continue to make financial deductions; or (2) the DRP
outcome is not favorable to CRHC and results in the
unavailability claims being upheld.

CRHC is a special purpose vehicle formed in 2002 to (i) build an
approximately 1,200 bed acute hospital, medical school facilities
and a 130 bed mental health unit in Coventry, England; and (ii)
provide FM and MES. CRHC's primary contractual relationship is
with two NHS Trusts, UHC and CWPT, under a 40-year project
agreement. The majority of services are provided to UHC, which
accounts for 93% of CRHC's unitary payment income.


FAIRLINE BOATS: MP Calls for Meeting Following Job Cuts Warning
---------------------------------------------------------------
Sam Wildman at Northamptonshire Telegraph reports that MP for
Corby and East Northants Tom Pursglove has called for a meeting
with Fairline Boats after the company warned of significant job
losses in its bid to keep the business afloat.

On Nov. 10, it was reported that the company had already begun a
consultation period with staff about possible redundancies as it
seeks to stem financial losses, Northamptonshire Telegraph
relates.

Fairline, which has bases in Corby and Oundle, also announced it
is seeking agreement from its creditors for a Company Voluntary
Arrangement to help it repay burdensome debt, Northamptonshire
Telegraph discloses.

The news comes just weeks after the company announced it was
temporarily laying off 109 of its 465 staff for four weeks,
Northamptonshire Telegraph notes.

And Mr. Pursglove, as cited by Northamptonshire Telegraph, said
he will continue to press the yacht builders for answers.

"I was disappointed to hear the announcement of job losses at
Fairline -- they are a major local employer in both Corby and
East Northamptonshire and this announcement will be of great
concern to local families," Northamptonshire Telegraph quotes
Mr. Pursglove as saying.

"In the last few weeks, I have been contacted by a number of
constituents in respect of Fairline's future and have been
working hard to try and meet its new executive team, including
offering to rearrange both my Westminster and constituency
diaries around them on numerous occasions.

"Unfortunately, however, this has been to no avail, with requests
either unanswered or ignored."

Fairline Boats is a yacht-builder.


GREENWICH CITY: Fitch Raises Rating on GBP74MM Bonds From 'BB+'
---------------------------------------------------------------
Fitch Ratings has upgraded City Greenwich Lewisham Rail Link
plc's GBP74 million (initial amount GBP165 mil.) senior secured
bonds due October 2020 to 'BBB-' from 'BB+'.  The Outlook is
Stable.

The upgrade reflects CGLR's improvement in cash flows and
coverage ratios in recent years, driven by continued patronage
growth and positive RPI, in addition to the mechanical effect of
declining debt service over time.  The upgrade also reflects
Fitch's view that the project is resilient to shocks and
sustained declines in patronage over the short- to medium-term.

The Stable Outlook is driven by the expected solid financial
performance under the Fitch base case, reflecting stable
passenger volumes and ongoing effective cost control over the
next two years.

KEY RATING DRIVERS

Revenue/Volume Risk - Midrange

The primary drivers for patronage have historically been
employment and development projects in and around Canary Wharf
and the City of London.  However, as jobs growth has slowed,
Fitch expects that underlying traffic growth will moderate.
Fitch believes that further proposed developments at Canary Wharf
are likely to have a fairly small impact on traffic volumes given
that such buildings are mainly residential and, in many cases,
are not expected to reach completion until nearer the end of the
concession.  Similarly, Fitch views the development of Crossrail
as likely to have a minimal impact given that completion is
planned towards the end of the concession.

After a sharp decline in 2008 of 4.5% -- due to disruptions
caused by the three-car project and job losses in the City of
London and Canary Wharf -- patronage has since been growing
healthily at a CAGR of 4.9% between 2009 and 2014.  Following
growth of 8.9% in 2014 (due to sporadic events such as tube
strikes and planned Thameslink works at London Bridge), Fitch
expects growth to continue at a modest pace, at a CAGR of 0.9%
between 2015 and 2020 under its base case (with -0.3% projected
under the Fitch rating case).

Revenue/Price Risk - Midrange

The indexation mechanism used to calculate the usage fee received
from the Docklands Light Railway (DLR) ensures that the project's
revenue is effectively linked to RPI.  As such, high RPI-
inflation over past years has supported the project's cash flows.
Recent abating inflation pressures should, however, not
materially impact the transaction.  Under Fitch's rating case, an
RPI of 0% would only reduce Fitch's projected adjusted average
debt service coverage ratio (ADSCRs) by 0.07x on average.

Infrastructure Development/Renewal Risk -- Midrange

Fitch currently does not consider heavy maintenance costs to be a
main risk factor for the project.  CGLR's operational obligations
are deemed fairly straightforward and therefore predictable.

Debt Structure -- Midrange

Some of the transaction's structural features are fairly weak
with only a six-month interest-only debt service reserve account
and no maintenance reserve account.  The cash lock-up ratio
threshold - set at a minimum annual ADSCR (excluding cash
balances) of 1.2x - is also fairly low, particularly in light of
the corporate taxes recently paid by CGLR, which are excluded
from the covenant calculation.

For the 6-month period ended June 2015, the Fitch-adjusted ADSCR
was lower than the ADSCR covenant by 0.19x.  Despite these weaker
features, the transaction strongly benefits from fully amortizing
debt with a gradual reduction in debt service from 2016 until the
maturity of the bonds (to GBP10m from around GBP20m per annum).

Credit Metrics

The ADSCR covenant (ex-cash) for the six-month period ended June
2015 stood at 1.52x (up from 1.47x a year ago), above Fitch's
base case.  However, Fitch's adjusted ADSCR is lower at 1.34x.
Fitch expects the ratio under its base case to remain at around
1.3x until December 2016.  Beyond 2016, Fitch expects coverage to
significantly improve and to remain neatly above 1.3x.  The
assumptions under the current Fitch base case result in projected
minimum and average adjusted ADSCR of 1.29x and 1.78x
respectively.

Fitch's rating case - which assumes more conservative patronage
growth and no interest income from positive cash balances -
results in a forecast average Fitch-adjusted ADSCR of 1.69x
(between 2014 and 2020).  The minimum ADSCR under the rating case
is 1.26x and is expected to be reached in the six months ending
December 2016.

Fitch ran several sensitivities, including a break-even analysis
in reduction in patronage.  A 15% reduction in patronage resulted
in a minimum Fitch-adjusted DSCR of 1x for the six-months ending
Dec. 2016.  A combined downside scenario including flat
patronage, RPI at 0% and a 40% increase in heavy maintenance
expenditure resulted in an average Fitch-adjusted ADSCR of 1.6x.
Furthermore, sensitivity analysis was also performed under high
and low inflation scenarios, under which RPI was increased and
reduced by 1.5% in each year respectively.  The results showed
that the project is resilient, with coverage viewed as robust
under the sensitivities, consistent with the project's ratings
and Positive Outlook.

RATING SENSITIVITIES

Positive: A significant improvement in the projected Fitch-
adjusted ADSCR metrics as a result of improving operating
performance (eg, driven by patronage growth) or due to the
mechanical effect of the declining debt service over time could
lead to positive rating action.

Negative: If Fitch's projected metrics under the rating case
decline, for example, as a result of patronage being below
current assumptions, a prolonged period of low or negative
inflation, or a substantial increase in operating and heavy
maintenance costs, the ratings could be negatively impacted.

SUMMARY OF CREDIT

CGLR holds a 24-and-half-year concession until March 2021, under
a government private finance initiative, to build and maintain a
portion of the DLR network (Lewisham Extension), serving the
Greenwich and Canary Wharf areas.


TMK PAO: Moody's Says TMK Capital Tender Offer Credit Neutral
-------------------------------------------------------------
Moody's Investors Service said that it views as credit neutral
for Russian steel pipe manufacturer PAO TMK (TMK, B1 negative)
the completion of TMK Capital S.A.'s tender offer (as announced
on November 10), because TMK's exposure to foreign currency risk
will remain substantial following the offer, as the share of
foreign-currency debt in its portfolio will decrease only
modestly. As a result of the tender offer, TMK Capital will
purchase US$91.18 million out of the total outstanding US$500
million 7.75% loan participation notes maturing in January 2018,
issued for the sole purpose of financing a loan to TMK (Notes).
Cash settlement (at 103.25% of par) is scheduled for
November 13.

TMK noted that the tender offer's purpose was to reduce the
group's US dollar-denominated debt. The reduction of that debt
would reduce TMK's currency risk in the environment of the weak
rouble and its generally volatile exchange rate. Moody's
estimates that after the tender offer completion, 38% of TMK's
debt will be in roubles and 62% in foreign currency (mainly US
dollar), compared with 35% and 65% as of June 30, 2015. Although
the change is insignificant, the transactions indicates TMK's
commitment to improve the currency structure of its debt
portfolio towards that of its revenues, of which 73% were
denominated in roubles and 27% in US dollars in H1 2015.

The tendered amount will not reduce TMK's total debt, which was
US$3 billion at June 30, 2015, because the transaction will
likely be funded with TMK's new RUB17 billion (around US$265
million) 10-year bank credit facility. Although TMK's reported
debt/EBITDA of 3.7x (as of June 30, 2015) is above the 3.5x level
of the incurrence covenant under the Notes, the new facility is
included in the permitted indebtedness.

TMK's B1 rating with a negative outlook continues to factor in
(1) the weakened demand for tubes and pipes from the oil and gas
sector in the US and the potential decline in demand in Russia if
oil prices remain low for long; and (2) the uncertainty over
TMK's ability to maintain its leverage below 4.0x Moody's-
adjusted debt/EBITDA on a sustainable basis (compared with 3.9x
as of June 30, 2015, down from 4.1x at end-2014).

TMK is Russia's largest producer and one of the world's largest
producers of steel pipe products for the oil and gas industry,
operating around 30 production sites across the US, Russia,
Romania, Kazakhstan and the Sultanate of Oman. The largest
proportion of TMK's shipments comprises high-margin oil country
tubular goods (OCTG), encompassing tubing, casing and drill
pipes, complemented with line, large-diameter and industrial
pipes as well as entire range of premium connections. In the
first nine months of 2015, TMK shipped 2.9 million tonnes of
steel pipes, including 1.8 million tonnes of seamless pipes. In
H1 2015, the company generated revenues of US$2.3 billion and
Moody's-adjusted EBITDA of $364 million. TMK's largest
shareholder is Mr. Pumpyanskiy, who controls a stake of around
68% in the company.


ZEBEDEE: Community Initiates a Fundraiser for Affected Mothers
--------------------------------------------------------------
Echo-news reports that fundraising page has been set up for the
victims of Zebedee, a baby goods company which went into
liquidation owing parents thousands of pounds.

Zebedee, which had operated in Southend for more than 40 years,
had closed suddenly leaving parents without their baby goods and
without cash they had paid the store in the run up to its
closure, according to Echo-news.

Since then, more distraught parents have come forward.

The report relates that Hana Smyth set up a fundraising Facebook
page after a friend was left more than GBP1,000 out of pocket.

Urging others to share her page, Ms. Smyth said: "I've decided to
set up a go fund me page to give back to the mummies losing out
please share far and wide to help out even if it's just GBP 1 "I
woke up feeling like I have to do something for the mummies who
have lost out on thousands of pounds due to this shop going
under. One of my friends is out of pocket by GBP1037, it's awful
this time of year with Christmas around the corner, the report
notes.

"As a community, I feel we can raise some money and get some of
the money back to help the mummies out there.  It's expensive
having a new baby so losing that amount is a struggle to make
ends meet," Ms. Smyth said, the report notes.



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


* Moody's Says EMEA Manufacturing Turns Neg. on Growth Prospects
----------------------------------------------------------------
The outlook for the EMEA manufacturing industry has turned to
negative from stable because the sector's EBITA growth will
likely be capped by lower anticipated global GDP growth and
profitability will level off as the benefits of cost-cutting
programs fade in 2016, says Moody's Investors Service in a
special report published today.

Moody's report, titled "Manufacturing -- EMEA: Outlook Changes To
Negative On Lower Growth Prospects, Flat Profitability", is
available on:

"Our negative outlook for EMEA manufacturers primarily reflects
the significant impact on sector revenues that muted GDP growth
forecasts in countries like including Brazil, China, Indonesia
and Russia will have on companies like Alstom, ABB Ltd. and
Schneider Electric, all of which have emerging market revenue
exposure of more than 40%," says Martin Kohlhase, a Moody's Vice
President -- Senior Credit Officer and author of the report.

GDP growth in Europe is patchy, with around 2.5% for Spain and
the UK in 2016, but much slower growth in France and in Italy of
around 1.0%. Legrand France S.A. (A3 stable) has material revenue
exposure to France and Italy (32%) and has forecasts organic
sales in 2015 of between plus 1.0% and minus 1.0%.

A pick-up in demand for capital goods in Europe is unlikely in
2016 with investment levels and government expenditure in many
major European economies below the long-term average.

End market demand will also remain muted as ongoing commodity
price weakness leads to further capex reductions in the oil &
gas, mining and auto sectors.

While input costs have fallen for EMEA manufacturers on the back
of the 15% year-to-date drop in brent oil prices and 34% fall in
iron ore prices, these savings will be insufficient to offset
lower sales.


* EMEA Oil Majors Outlook Negative for 2016, Fitch Says
-------------------------------------------------------
Fitch Ratings expects that the macro environment for EMEA oil
majors will remain challenging in 2016.  Crude prices are
unlikely to recover, while refining margins will moderate from
the record 2015 levels.  However, cost deflation should become
more pronounced and help to cushion the majors' profits.

While the sector outlook is viewed as generally negative, the
rating Outlook is Stable as we do not expect sector-wide negative
rating actions.  Credit metrics of most players will remain
stretched in 2016, but this cyclicality is a known feature of
companies in this industry, and we will only take negative action
where we expect the current downturn to permanently impair
companies' credit profiles.

Fitch expects that cost deflation in the industry should help to
push the majors' opex and capex down in 2016.  Though the
potential extent of deflation is still unclear and will depend on
how long oil prices remain depressed, current rates for many oil
services have already decreased by up to 20%.  Offshore drilling
rates have fallen even more, by 30-40%.  Furthermore, the
depreciation of national currencies in oil-producing countries
should also help the majors to reduce operating costs.


* BOOK REVIEW: Oil Business in Latin America: The Early Years
-------------------------------------------------------------
Author: John D. Wirth Ed.
Publisher: Beard Books
Softcover: 282 pages
List price: $34.95
Review by Gail Owens Hoelscher
Buy a copy for yourself and one for a colleague on-line at
http://is.gd/DvFouR

This book grew out of a 1981 meeting of the American Historical
Society. It highlights the origin and evolution of the stateowned
petroleum companies in Argentina, Mexico, Brazil, and
Venezuela.

Argentina was the first country ever to nationalize its
petroleum industry, and soon it was the norm worldwide, with the
notable exception of the United States. John Wirth calls this
phenomenon "perhaps in our century the oldest and most
celebrated of confrontations between powerful private entities
and the state."

The book consists of five case studies and a conclusion, as
follows:

* Jersey Standard and the Politics of Latin American Oil
Production, 1911-30 (Jonathan C. Brown)
* YPF: The Formative Years of Latin America's Pioneer State
Oil Company, 1922-39 (Carl E. Solberg)
* Setting the Brazilian Agenda, 1936-39 (John Wirth)
* Pemex: The Trajectory of National Oil Policy (Esperanza
   116 Duran)
* The Politics of Energy in Venezuela (Edwin Lieuwen)
* The State Companies: A Public Policy Perspective (Alfred
H. Saulniers)

The authors assess the conditions at the time they were writing,
and relate them back to the critical formative years for each of
the companies under review. They also examine the four
interconnecting roles of a state-run oil industry and
distinguish them from those of a private company. First, is the
entrepreneurial role of control, management, and exploitation of
a nation's oil resources. Second, is production for the private
industrial sector at attractive prices. Third, is the
integration of plans for military, financial, and development
programs into the overall industrial policy planning process.
Finally, in some countries is the promotion of social
development by subsidizing energy for consumers and by promoting
the government's ideas of social and labor policy and labor
relations.

The author's approach is "conceptual and policy oriented rather
than narrative," but they provide a fascinating look at the
politics and development of the region. Mr. Brown provides a
concise history of the early years of the Standard Oil group and
the effects of its 1911 dissolution on its Latin American
operations, as well as power struggles with competitors and
governments that eventually nationalized most of its activities.
Mr. Solberg covers the many years of internal conflict over oil
policy in Argentina and YPF's lack of monopoly control over all
sectors of the oil industry. Mr. Wirth describes the politics
and individuals behind the privatization of Brazil's oil
industry leading to the creation of Petrobras in 1953. Mr. Duran
notes the wrangling between provinces and central government in
the evolution of Pemex, and in other Latin American countries.

Mr. Lieuwin discusses the mixed blessing that oil has proven for
Venezuela., creating a lopsided economy dependent on the ups and
downs of international markets. Mr. Saunders concludes that many
of the then-current problems of the state oil companies were
rooted in their early and checkered histories." Indeed, he says,
"the problems of the past have endured not because the public
petroleum companies behaved like the public enterprises they
are; they have endured because governments, as public owners,
have abdicated their responsibilities to the companies."
Jonh D. Wirth is Gildred Professor of Latin American Studies at
Standford University.


                            *********

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

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

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


                            *********


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

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