/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/151127.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 27, 2015, Vol. 16, No. 235 Headlines G E R M A N Y BARVIE GMBH: Le Meridien Hotel in Vienna Files for Insolvency I R E L A N D ALLIED IRISH: Fitch Assigns 'B-(EXP)' Rating to AT1 Notes ALLIED IRISH: Fitch Assigns 'BB-' Rating to Tier 2 Sub. Debt N E T H E R L A N D S GLOBAL TIP: S&P Affirms 'BB' CCR, Then Withdraws Rating HARBOURMASTER CLO 3: Fitch Affirms B- Rating on Cl. B2 Notes P O L A N D CIECH SA: S&P Raises CCR to 'BB-', Outlook Stable SPOLDZIELCZY BANK: Pekao Faces PLN234-Mil. Cost Over Collapse R O M A N I A KAZMUNAYGAS INTERNATIONAL: S&P Affirms 'B-' CCR, Outlook Stable R U S S I A BANK URALSIB: S&P Lowers Counterparty Credit Ratings to 'SD' DAR INSURANCE: Placed Under Provisional Administration FINANCIAL REINSURANCE: Bank of Russia Revokes License INVESTTRADEBANK: S&P Affirms 'R' Ratings, Then Withdraws REGARD INSURANCE: Placed Under Provisional Administration RSA INTER-POLIS: Placed Under Provisional Administration SPECIALISED INSURANCE: Bank of Russia Suspends Insurance License S P A I N ABENGOA SA: No Bankruptcy Credit Event, ISDA Committee Rules ABENGOA SA: Fitch Lowers Issuer Default Rating to 'CC' S W E D E N VERISURE MIDHOLDING: Moody's Assigns B2 Corporate Family Rating U K R A I N E NAFTOGAZ NJSC: Fitch Raises LT Issuer Default Ratings to 'CCC' U N I T E D K I N G D O M BALLANTYNE RE PLC: S&P Withdraws D Rating on Subordinated Debt FAIRLINE BOATS: MP to Hold Session for Workers Today MCLAREN HOMES: Developer Files For Insolvency ********* ============= G E R M A N Y ============= BARVIE GMBH: Le Meridien Hotel in Vienna Files for Insolvency ------------------------------------------------------------- FriedlNews reports that Barvie GmbH, the operator of the "Le Meridien" hotel in Vienna, has filed for bankruptcy. FriedlNews relates that proceedings have already been launched. The reason for this is a dispute concerning rent for land property. The operator is lagging behind with rent payments. The hotel itself is profitable, according to KSV, and it is supposed to continue operating, FriedlNews relays. ============= I R E L A N D ============= ALLIED IRISH: Fitch Assigns 'B-(EXP)' Rating to AT1 Notes --------------------------------------------------------- Fitch Ratings has assigned Allied Irish Banks' (AIB BB/Pos./B/bb) upcoming issue of perpetual additional Tier 1 (AT1) notes an expected rating of 'B-(EXP)'. The assignment of the final rating is contingent on receipt of final documentation confirming to information already received. KEY RATING DRIVERS The proposed notes are CRD IV-compliant perpetual non-cumulative resettable AT1 instruments with fully discretionary interest payments and are subject to write-down if AIB's Basel III common equity Tier 1 (CET1) ratio falls below 7%. The trigger ratio is calculated on a 'phased-in' basis under the EU capital requirement regulations (CRR). The rating is four notches below AIB's 'bb' Viability Rating (VR), the maximum rating under Fitch's Global Bank Rating Criteria that can be assigned to deeply subordinated notes with fully discretionary coupon omission issued by banks with a VR anchor of 'bb'. The notching reflects the notes' higher loss severity relative to senior unsecured creditors (two notches) and higher non- performance risk (two notches) given the fully discretionary coupon payments. Fitch considers the latter to be the most easily activated form of loss absorption. AIB's transitional CET1 ratio, which includes the bank's government-held preference shares (EUR3.5 billion), was 18.2% at end-3Q15, well above the trigger point of 7%. Fitch expects the phased-in CET1 ratio to fall to 15% by end-2015 following a capital reorganization announced by AIB on Nov. 6, 2015. The capital reorganization plan has received regulatory approval and is aimed at simplifying its capital stack. It includes the issuance of at least EUR500 million AT1 securities and the partial conversion of its government-held preference shares (EUR1.8 billion) into ordinary bank shares. The bank will redeem its convertible securities (EUR1.6 billion) as they mature in July 2016 and also repay the balance of preference shares still outstanding (EUR1.7 billion). The capital reorganization also includes the EUR750 Tier 2 capital notes issued on Nov. 18, 2015. Fitch understands from management that the expected 15% transitional CET1 ratio remains well above the bank's combined buffer requirement (SREP) and that the bank plans to maintain a buffer above its requirement to avoid any regulatory restriction on the payment of AT1 distributions if its SREP is breached. At end-1H15, the amount available to AIB for distribution to AT1 holders amounted to more than EUR5 billion, although Fitch expects this to reduce by EUR1.7 billion upon redemption of the preference shares. Nonetheless, the bank forecasts restoring this fairly swiftly to ensure it has sufficient amounts to honor interest payments on the notes at all times. Fitch expects to assign 100% equity credit to the securities. This reflects their full coupon flexibility, the ability to be converted into ordinary shares before the bank becomes non- viable, their permanent nature and their subordination to all senior creditors. RATING SENSITIVITIES As the securities are notched down from AIB's VR, their rating is mostly sensitive to any change in this rating. The Positive Outlook on AIB's Long-term IDR reflects Fitch's view that as improvements in the bank's capital profile and deleveraging of problematic assets continue to feed through to its credit profile, the VR and the IDR may be upgraded. However, if any of Fitch's expectations are not met, or if macroeconomic conditions reverse and cause further weakening of asset quality to the extent that impairment charges would compromise the bank's profitability and therefore capital flexibility, this would be negative for the rating. The securities' ratings are also sensitive to a change in their notching, which could arise if Fitch changes its assessment of the probability of their non-performance or loss-severity relative to the risk captured in AIB's VR. This could reflect a change in capital management or flexibility or an unexpected shift in regulatory buffers, for example. The notching would also likely increase to five notches if AIB's VR anchor rating is upgraded to at least 'bbb-', in line with Fitch's criteria. ALLIED IRISH: Fitch Assigns 'BB-' Rating to Tier 2 Sub. Debt ------------------------------------------------------------ Fitch Ratings has assigned Allied Irish Banks, Plc's (AIB; BB/Pos.) Tier 2 subordinated debt a final Long-term rating of 'BB-'. The final rating is in line with the expected rating Fitch assigned to the notes on Nov. 17, 2015. KEY RATING DRIVERS The issue is rated one notch below AIB's 'bb' Viability Rating (VR), reflecting the higher-than- average loss severity of this type of debt than senior unsecured obligations. Fitch has not applied additional notching for incremental non-performance risk relative to the VR given that loss absorption would only occur once the bank reaches the point of non-viability. RATING SENSITIVITIES As the securities are notched down from AIB's VR, their rating is mostly sensitive to a change in this rating. The Positive Outlook on AIB's Long-term IDR reflects Fitch's view that as improvements in the bank's capital profile and deleveraging of problematic assets continue to feed through to its credit profile, the ratings may be upgraded. However, if any of Fitch's expectations are not met, or if macroeconomic conditions reverse and cause further weakening of asset quality to the extent that impairment charges would compromise the bank's profitability and therefore capital flexibility, this would be negative for the rating. The issue's rating is also sensitive to a change in Fitch's assessment of loss severity or non-performance risk. ===================== N E T H E R L A N D S ===================== GLOBAL TIP: S&P Affirms 'BB' CCR, Then Withdraws Rating ------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' long-term corporate credit rating on Netherlands-based trailer services provider Global TIP Holdings One B.V. (TIP One). S&P subsequently withdrew the ratings on TIP One. At the same time, S&P assigned its 'BB' long-term corporate credit rating to Global TIP Holdings Two B.V. (TIP Two), the new debt issuer and holding company of TIP Trailer Services group. The outlook is stable. The 'BB' rating reflects S&P's view that the company will continue with its high capex (about EUR100 million-EUR120 million per year) in the next few years while it executes its strategy of renewing and growing its leasing and service businesses after a period of fleet underinvestment. S&P thinks that this strategy is likely to increase TIP Two's financial leverage as it sees limited organic growth potential in the near future while the market remains somewhat subdued. S&P has therefore revised its assessment of TIP Two's financial risk profile to "significant" from "intermediate". However, S&P forecasts that TIP Two will achieve a ratio of adjusted FFO to debt of 27%-30% in the next two-to-three years, which S&P considers commensurate with the current rating S&P is withdrawing its 'BB' rating on TIP One and assigning S&P's 'BB' rating to TIP Two because the group's consolidation changed in late 2014 when it refinanced its acquisition debt. TIP Two is now the top-most holding company of the TIP Trailer Services Group under the new debt structure. Conditions in the European trailer operating lease industry are closely linked to general economic prospects. As such, and given TIP's exposure to European economies in which growth is slow and uneven, S&P has seen muted demand and oversupply in the industry. This has depressed rates recently. Coupled with reducing the fleet, this has affected the group's profitability -- EBITDA margins reduced to about 31% in 2014, from the high forties in 2011-2012. S&P thinks TIP Two will likely benefit from end-customers' plans to renew fleets as the demand for their services continues to grow modestly, led by stable consumer spending in Europe. TIP Two continues to benefit from good end-industries diversification including food, retail, and consumer products. S&P believes that TIP Two's strategy of focusing on full-service long-term leases (those that include maintenance and other services) will support future earnings visibility. S&P also thinks that a shift in the fleet mix toward higher-value trailer types will gradually increase lease rates and help stabilize profitability at about a 30% EBITDA margin. S&P's "fair" assessment of TIP Two's business risk profile is constrained by its relative small size in what S&P views as a fragmented and generally cyclical industry. This is somewhat mitigated by a degree of cash-flow predictability due to the contracted nature of a part of its revenues; about 50% comes from long-term leasing contracts and about 17% from multi-year service contracts. S&P understands some of these contracts include indexation clauses. S&P's base case assumes: -- Revenue growth of about 8%-10% in the next two years supported by acquisition revenues, stable utilization rates at about 83%, and a growing fleet as a result of the current investment strategy. -- EBITDA margins stabilizing at about 30% as the share of long-term lease contracts in total revenues continues to be stable at around 47%-50%. -- Capex of about EUR100 million-EUR120 million per year in the next two-to-three years. -- Acquisition spending of about EUR60 million per year. -- No shareholder distribution as the current shareholder is supportive of the company reinvesting its cash flows into capex. Based on these assumptions, S&P arrives at these credit measures: -- Adjusted FFO/debt of about 27%-30% in the next two-to-three years. -- Debt to EBITDA of around 3.0x-3.3x. -- Negative free operating cash flow. In S&P's opinion, the rating currently has limited upside potential for as long as the company pursues its partly debt- financed investment strategy. Upside could emerge, however, if TIP Two reached and maintained FFO to debt of above 35% stemming, for example, from higher profitability and stronger demand. Downside potential could arise from weaker-than-expected demand, leading to a decline in utilization and lease rates. S&P could also consider a negative rating action if its forecast for revenue growth does not materialize despite the current fleet investments or if liquidity deteriorates as a result of unexpected operational challenges or lower remarketing proceeds than S&P anticipates, resulting in FFO to debt declining to less than 20%. S&P could also lower the rating if it witnesses a change in the current financial policy that S&P regarded as more aggressive than it currently anticipates -- for example if it involves a change in TIP Two's dividend policy. HARBOURMASTER CLO 3: Fitch Affirms B- Rating on Cl. B2 Notes ------------------------------------------------------------ Fitch Ratings has affirmed Harbourmaster Pro-Rata CLO 3 B.V.'s notes, as: Class A1-T (ISIN XS0306976266): affirmed at 'AAAsf'; Outlook Stable Class A1-VF (ISIN NL0006005498): affirmed at 'AAAsf'; Outlook Stable Class A2 (ISIN XS0306976696): affirmed at 'AAsf'; Outlook Stable Class A3 (ISIN XS0306977157): affirmed at 'A-sf'; Outlook Neg. Class A4 (ISIN XS0306977314): affirmed at 'BBB-sf'; Outlook Neg. Class B1 (ISIN XS0306978981): affirmed at 'BB-sf'; Outlook Neg. Class B2 (ISIN XS0306979955): affirmed at 'B-sf'; Outlook Neg. Class S4 (ISIN XS0306981779): affirmed at 'BBB-sf'; Outlook Neg. Harbourmaster Pro-Rata CLO 3 B.V. is a securitization of mainly European senior secured loans, senior unsecured loans, second- lien loans, mezzanine obligations and high-yield bonds. At closing, total note issuance of EUR612 million was used to invest in a target portfolio of EUR598 million. The portfolio is actively managed by Blackstone/GSO Debt Funds Management Europe Limited. KEY RATING DRIVERS The affirmation reflects the adequate credit enhancement available to the rated notes. The credit quality of the performing portfolio has improved over the past 12 months. The reported weighted average rating factor currently stands at 26.9, compared with 28.7 as of Oct. 2014. Similarly, the reported weighted average recovery rate has improved to 69.0% from 68.0% in Oct. 2014. The improvement in the performing portfolio was offset by the default of two obligors in the past 12 months. The Negative Outlook on the mezzanine and junior notes reflects their sensitivity to the amount of excess spread diversion. There is continued uncertainty regarding the definition of defaulted assets for the purpose of the coverage tests, which may reduce the efficiency of the overcollateralization (OC) tests. The OC tests have never been breached and OC test results have improved since Oct. 2014. A haircut to the value of assets rated 'CCC' or below is only applied for the calculation of the class A2 OC test. The interest coverage test continues to pass with a substantial buffer. RATING SENSITIVITIES A 25% increase in the obligor default probability would lead to a downgrade of up to two notches for the rated notes. A 25% reduction in expected recovery rates would lead to a downgrade of up to three notches for the rated notes. DUE DILIGENCE USAGE No third-party due diligence was provided or reviewed in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. There were no findings that were material to this analysis. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority registered rating agencies. Fitch has relied on the practices of the relevant Fitch groups and/or other rating agencies to assess the asset portfolio information. Overall, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. =========== P O L A N D =========== CIECH SA: S&P Raises CCR to 'BB-', Outlook Stable ------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Poland-based soda ash producer Ciech SA to 'BB-' from 'B+'. The outlook is stable. At the same time, S&P raised to 'BB-' our issue rating on Ciech's EUR245 million bond. The issue rating will be withdrawn after the company redeems the bond on Nov. 30. The rating actions indicate that S&P expects Ciech to report strong results in 2015 and 2016, and anticipate that it will sustain reported EBITDA margins of at least 18%. Over the past 12 to 18 months, Ciech has benefited from favorable industry conditions, including: -- Strong soda ash prices supported by growing demand for soda ash in Central and Eastern Europe (CEE) and capacity curtailments at competitors such as Solvay Pavoa and Tata chemicals; -- Higher sales volumes as a result of capacity additions in Poland and Romania; and -- A reduction in the cost of important raw materials, especially coal, and energy. Management has maintained its focus on cost control and internal efficiencies, which S&P considers has supported operating performance. Ciech expects to expand capacity in its key profit-generating soda ash business in 2016, producing an additional 140 kilotons of soda ash per year. Once this expansion has come onstream in the first quarter of next year, S&P understands that it intends to focus on organic growth, notably in its Organika Sarzyna business. This includes further development of its crop protection products distribution network in Poland, and registration of these products for sale in Western European markets. As a result, S&P anticipates that Ciech's capital expenditure (capex) should decline in 2017 from about PLN500 million in 2016. This reduction in investments, combined with the forecast stable performance, should lead to material positive free operating cash flows (FOCF) and a further reduction in leverage. Ciech's financial policy is to sustain net debt to EBITDA (as defined by the company) of 1x-2x; S&P views this as an important positive factor. Under S&P's prudent base-case scenario, it forecasts that Ciech will report EBITDA of about PLN630 million-PLN650 million in 2015, and moderate growth in 2016. Based on pro forma Standard & Poor's-adjusted debt of about PLN1.5 billion at end-2015, S&P anticipates Ciech's leverage will decline to 2.1x-2.4x from 2.4x in 2014, and further to about 2.1x-2.3x in 2016 as the company's EBITDA grows. In S&P's base-case scenario, it assumes: -- Reported EBITDA margin of above 20% in 2015 and 19%-20% in 2016, supported by favorable soda ash and feedstock prices; -- Capex of about PLN500 million in 2015 and 2016; -- No dividends in 2015, as announced, with modest amounts in 2016; and -- No acquisitions. Based on these assumptions, S&P arrives at these credit metrics: -- Adjusted debt-to-EBITDA of 2.1x-2.4x in 2015, and about 2.1x-2.3x in 2016; and -- Moderate negative FOCF in 2015 (including refinancing costs) and positive in 2016. Based on the above ratios, S&P revised upward its financial risk profile assessment to significant. S&P continues to view Ciech's business risk profile as constrained by high exposure to the cyclical packaging and construction industries, which are Ciech's key end-markets; its limited product diversity through its core soda ash production; and its reliance on a small number of suppliers for key raw materials such as brine and limestone. S&P factors this into its comparable rating analysis, constraining the rating by one notch. However, S&P recognizes that there is some backward integration, notably of the company's Polish operations into steam production and electricity, and its German operations into limestone, brine, and also into steam and electricity. The stable outlook reflects S&P's view that Ciech will be able to maintain strong operating performance, with reported EBITDA margins of at least 18% in the coming years, and that it will generate material positive FOCF from 2017, leading to further deleveraging. S&P views an adjusted ratio of debt to EBITDA of about 2.5x-3.0x on average as commensurate with 'BB-' rating. S&P does not exclude the possibility of raising the rating in 2016-2017. Supportive factors could include Ciech increasing its track record of strong operating performance and positive FOCF as the company finalizes its heavy investments in soda ash capacity expansion. S&P could also raise the rating if it saw evidence of successful diversification into the crop protection business as well as supportive financial policies. S&P views an adjusted debt to EBITDA of about 1.5x-2.5x as commensurate with a higher rating. S&P could consider a negative rating action if it observed a deterioration in Ciech's leverage to 3.5x-4.0x, for example, as a result of weaker-than-anticipated margins, unexpected dividends or acquisitions, or higher capex. SPOLDZIELCZY BANK: Pekao Faces PLN234-Mil. Cost Over Collapse ------------------------------------------------------------- Jakub Iglewski, Marcin Goettig, Marcin Goclowski and Agnieszka Barteczko at Reuters report that Poland's banks urged the government to rein in a planned new levy on the industry after Pekao SA, the country's second largest lender, joined a growing list of those forced to help cover the cost of the failure of Spoldzielczy Bank Rzemiosla i Rolnictwa (SK Bank). Poland's financial regulator submitted a bankruptcy filing on Nov. 25 for SK Bank, which has about PLN3.5 billion of assets, Reuters relates. Under Polish law, other banks have to cover the liabilities of failed peers, Reuters notes. Pekao, the Polish unit of Italy's UniCredit, said it would have to contribute PLN234 million (US$58 million) and that the fee would hit its results in the fourth quarter of this year, Reuters discloses. Others will be similarly affected, Reuters states. Poland's banks could face a bill of PLN2.1 billion stemming from the failure of SK Bank, Reuters relays, citing local brokerage DM BZ WBK. According to Reuters, the head of the country's national banking association, the ZBP, called on the country's new government to show restraint in implementing any further levies on the sector. Spoldzielczy Bank Rzemiosla i Rolnictwa is one of Poland's biggest cooperative lenders. ============= R O M A N I A ============= KAZMUNAYGAS INTERNATIONAL: S&P Affirms 'B-' CCR, Outlook Stable --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B-' long-term corporate credit rating on Romania-based refining and marketing company KazMunayGas International N.V. (KMG International). The outlook is stable. The affirmation follows S&P's revision of KMG International's group status downward by one category to moderately strategic from strategically important. This reflects S&P's view that the link between KMG International and its Kazakhstan-based parent KazMunayGas NC JSC (KMG) has somewhat weakened. This had no impact on the rating because a moderately strategic assessment still allows S&P to rate KMG International one notch above its 'ccc+' stand-alone credit profile (SACP; a measure of its intrinsic creditworthiness before taking into account group or government influence). S&P considers that there is a somewhat increased likelihood of the parent considering divesting KMG International over the medium term than S&P thought previously. This is not based on any communication by KMG, but is S&P's own assessment of the situation, and reflects KMG's weakened financial performance in the challenging industry conditions and its ongoing portfolio optimization efforts. However, S&P thinks that until any such time, KMG would still be likely to provide some extraordinary parental support to its 100%-owned subsidiary if it fell into financial difficulty or required additional funding, for example in relation to KMG International's litigation risk. In S&P's view, incentives remain for the parent to step in under some circumstances, as the parent has provided support through explicit guarantees and a letter of comfort for some of KMG International's credit facilities. But S&P views the parent's financial ability to support its subsidiary as having weakened due to the tough market conditions in the wider oil and gas sector. S&P continues to apply its "Criteria For Assigning 'CCC+', 'CCC', 'CCC-', And 'CC' Ratings," published on Oct. 1, 2012, to derive KMG International's SACP. Despite the company's material short- term debt, S&P believes that it is likely to continue to be successful in rolling over its short-term credit lines, although this remains a key risk. S&P continues to assess the business risk profile of KMG International, Romania's second-largest oil refiner and marketer, as vulnerable. The company benefits from vertical integration through its trading, fuel retailing business, and petrochemicals activities. It has one of the most modern and complex refineries in Romania and the Black Sea basin. However, all of KMG International's operations are linked to the output of the Petromidia refinery, so S&P sees asset concentration and lack of critical size as key rating factors. S&P's assessment of KMG International's highly leveraged financial risk profile reflects S&P's view of the company's high debt metrics and weak cash flow generation. For most European refiners, S&P expects generally weaker EBITDA margins in 2016, after much-improved market conditions and increased margins in 2015. However, in the case of KMG International, S&P expects credit metrics to improve in both of the full years 2015 and 2016, given structural improvements made by the company. S&P forecasts Standard & Poor's-adjusted debt to EBITDA of below 5x by year end 2016. S&P assesses KMG International's liquidity as weak under S&P's criteria. S&P estimates that KMG International's ratio of sources to uses of liquidity will remain well below 1x for the next 12 months. In S&P's calculations, it assumes that KMG International repays its outstanding short-term uncommitted credit facilities, although in practice it may continue to roll these over, subject to lenders' agreements. S&P notes that the company has made some progress in improving its repayment profile through the negotiation of longer-term credit lines, but there is still a material amount of short-term debt. S&P anticipates the company will have the following principal liquidity sources over the 12 months from Sept. 30, 2015: -- US$99 million of cash; and -- USS&P's forecast of funds from operations generation of over US$100 million in the next 12 months. S&P anticipates these principal liquidity uses over the same 12-month period: -- About US$45 million in maintenance level capital spending; -- A working capital outflow of about US$80 million; and -- US$336 million of debt under short-term credit facilities, which are mostly uncommitted. The stable outlook reflects S&P's view that KMG International's credit metrics will further strengthen over the next 12 months, given structural improvements made by the company, and that the company will continue to refinance its short-term credit lines as they come due. It also reflects S&P's view that KMG would likely still provide some extraordinary group support to KMG International despite S&P's view of the somewhat increased likelihood of it being divested over the medium term. As a result the rating on KMG International is one notch above its 'ccc+' SACP. S&P could lower the rating on KMG International if it does not manage to successfully refinance its short-term credit lines, or if liquidity weakens further, for example due to litigation risks. Similarly, if S&P perceives any further reduction in the likelihood of potential extraordinary support for KMG International from its parent, S&P could lower the rating to the level of the 'ccc+' SACP. An upgrade is currently unlikely overall. If S&P revised KMG International's SACP upward to 'b-', the rating would be unchanged because S&P caps any uplift for potential extraordinary parental support at one notch below the 'b' group credit profile under its group rating methodology. S&P could more likely revise KMG International's SACP upward if the company maintains good operating performance and improves its liquidity profile, for example by continuing to put longer-term financing in place. This scenario incorporates S&P's expectation that KMG International's free operating cash flow generation is likely to improve further in 2015 and 2016, following the upgrade of its Petromidia refinery in Romania and increased product throughput. =========== R U S S I A =========== BANK URALSIB: S&P Lowers Counterparty Credit Ratings to 'SD' ------------------------------------------------------------ Standard & Poor's Ratings Services said that it lowered its 'B-' long-term and 'C' short-term counterparty credit ratings on Russia-based Bank URALSIB (PJSC) to 'SD'. The downgrade follows Bank URALSIB's announcement that on Nov. 16, 2015, it had canceled all its outstanding subordinated debts, including non-hybrid (under S&P's classification) "old style" loans without loss-absorption features. This is a scenario which S&P did not previously envisage in its analysis. S&P views the executed cancelation of two non-hybrid "old style" subordinated bilateral loans of US$73.6 million maturing in 2017, and RUB6 billion maturing in 2019, received in 2007 and 2008 respectively, as equaling nonpayment in full. This is because at the close of the transaction, investors will receive less than they were promised in the original agreements, on the maturity date. S&P also understands that the cancelation of the above- mentioned debts could be subject to legal claims from the creditors. S&P therefore anticipates that the bank will create respective provisions. S&P notes that two "new style" hybrid subordinated loans of US$77.3 million maturing in 2020, and perpetual debt of US$71.6 million issued in 2015, were also written down, but these instruments contain loss-absorption features embedded in their terms. S&P treats subordinated debts issued in Russia before 2014 as "old style" non-hybrid instruments, if their terms do not contain loss-absorption features. S&P did not anticipate these instruments to participate in loss-absorption on par with "new style" subordinated debt after 2014. S&P do not rate any of debt issued by Bank URALSIB. However, the cancelation of a debt instrument that is not classified as a hybrid leads to a selective default under S&P's criteria. On Nov. 4, 2015, the Central Bank of Russia (CBR) announced measures for Bank URALSIB's financial rehabilitation, including having found an investor to buy an 82% stake in the bank. The new major investor is prominent Russian businessman Vladimir Kogan. S&P understands that the DIA provided Bank URALSIB with several tranches of long-term loans totaling RUB81 billion to help maintain Bank URALSIB's financial stability. In S&P's base case, it believed that, over the next 12-18 months, the bank will be compliant with all regulatory ratios. S&P also worked on the basis that the regulator (CBR or DIA) would not execute the power to favor one class of bank's obligations over others or suspend payment of the bank's outstanding liabilities, in line with its public statement. This is also why S&P did not lower the ratings to 'R' (under regulatory supervision), at that time. S&P expects to review the ratings on Bank URALSIB within the next few weeks, when S&P has updated information of the bank's capital buffer after the closure of this transaction and results of the initial implementation of the financial rehabilitation plan. DAR INSURANCE: Placed Under Provisional Administration ------------------------------------------------------ The Bank of Russia, by its Order No. OD-3153 dated November 12, 2015, took a decision to appoint from November 12, 2015, a provisional administration to CJSC Insurance Company DAR. The decision to appoint the provisional administration was taken due to the suspension of the Company's insurance and reinsurance licenses (Bank of Russia Order No. OD-2613, dated September 30, 2015). The powers of the executive bodies of the Company are suspended. Ilya S. Pavlikov, member of the non-profit partnership Self- Regulatory Organisation of Receivers International Centre of Experts and Professional Receivers, has been appointed as a head of the provisional administration. FINANCIAL REINSURANCE: Bank of Russia Revokes License ----------------------------------------------------- The Bank of Russia, by its Order No. OD-3231 dated November 19, 2015, revoked the reinsurance license of Financial Reinsurance Company, LLC. The decision is taken due to the insurer's failure to timely remedy the violations of insurance legislation, which served as a ground for the suspension of the reinsurance license (Bank of Russia Order No. OD-2392, dated September 10, 2015, "On Suspending Reinsurance Licence of Financial Reinsurance Company, Limited Liability Company", i.e. due to the non-compliance with financial sustainability and solvency requirements with respect to procedure and conditions of investing capital and insurance reserves. The decision becomes effective the day it is published in the Bank of Russia Bulletin. -- due to the revocation of its license, Financial Reinsurance Company, limited liability company, shall: -- take a decision on the termination of insurance activity in accordance with Russian legislation; -- meet its liabilities arising from insurance (reinsurance) contracts, including the payment of insurance benefits under insured events; and -- transfer liabilities taken under insurance (reinsurance) contracts, and/or to cancel these contracts. Financial Reinsurance Company, LLC, shall inform insured persons on the revocation of its license, early termination of reinsurance contracts and/or transfer of liabilities to another insurer (reinsurer) within a month after the decision on the revocation of the license becomes effective. INVESTTRADEBANK: S&P Affirms 'R' Ratings, Then Withdraws -------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its long- and short-term counterparty credit and national scale ratings on Investtradebank (ITB) at 'R' (regulatory supervision). S&P then withdrew the ratings at the issuer's request. The affirmation signifies that ITB remains under the regulatory supervision of the Deposit Insurance Agency, which is temporarily managing ITB after its capitalization and liquidity metrics had weakened significantly. On Oct. 15, 2015, the Central Bank of Russia announced that Transcapitalbank (TCB) was selected to develop and implement ITB's financial rehabilitation. S&P understands that TCB is currently in the process of developing a plan for ITB's rehabilitation, which S&P expects the banking regulator to approve by the end of 2015. REGARD INSURANCE: Placed Under Provisional Administration --------------------------------------------------------- The Bank of Russia, by its Order No. OD-3145 dated November 12, 2015, took a decision to appoint from November 12, 2015, a provisional administration to Regard Insurance, LLC. The decision to appoint the provisional administration was taken due to the suspension of the Company's insurance license (Bank of Russia Order No. OD-2615, dated September 30, 2015. The powers of the executive bodies of the Company are suspended. Denis A. Leonov, member of the non-profit partnership Association of Receivers Vozrozhdenie, has been appointed as a head of the provisional administration. RSA INTER-POLIS: Placed Under Provisional Administration -------------------------------------------------------- The Bank of Russia, by its Order No. OD-3158 dated November 12, 2015, took a decision to appoint a provisional administration to Insurance Company RSA Inter-Polis LLC. The decision to appoint a provisional administration was taken due to the suspension of the Company's insurance license (Bank of Russia Order No. OD-2690, dated October 7, 2015). The powers of the executive bodies of the Company are suspended. Lyudmila Matveyeva, a member of the non-profit partnership Self- Regulatory Organisation of Independent Receivers DELO, has been approved as a head of the provisional administration of the Company. SPECIALISED INSURANCE: Bank of Russia Suspends Insurance License ---------------------------------------------------------------- The Bank of Russia, by its Order No. OD-3188 dated November 16, 2015, suspended the insurance license of Specialised Insurance Company, LLC. The decision is taken due to the insurer's failure to duly meet Bank of Russia instruction, particularly, financial stability and solvency requirements, procedure and conditions to invest equity and insurance reserve funds. The decision becomes effective the day it is published in the Bank of Russia Bulletin. The suspension of licenses prohibits the insurance agent from entering into new contracts of insurance and introducing amendments resulting in increase in insurance agent's obligations under the current contracts. The insurance company must accept notifications of claim and meet its obligations. ========= S P A I N ========= ABENGOA SA: No Bankruptcy Credit Event, ISDA Committee Rules ------------------------------------------------------------ Helen Bartholomew and Robert Smith at Reuters report that the International Swaps and Derivatives Association, Inc.'s credit determinations committee has ruled that recent events at Abengoa do not constitute a bankruptcy credit event. According to Reuters, the anonymous general interest question was submitted to ISDA's committee on Nov. 25, citing Abengoa's announcement that it would file for creditor protection after a deal to secure EUR350 million in funding from a white knight investor fell through. The 15-strong committee, comprising 10 sell-side and five buy- side firms, convened on Nov. 26, Reuters relates. It unanimously ruled that Abengoa's intention to seek protection under Article 5bis of the Spanish insolvency law did not constitute a credit event, Reuters discloses. The committee noted that a further question could be submitted if new information becomes available, Reuters relays. A ruling in favor of a credit event would trigger payouts on US$718 million notional outstanding of credit default swaps, Reuters notes. Abengoa, Reuters says, is striving to reach an agreement with creditors to avoid a full insolvency process and under Spanish law, has four months to reach an agreement with investors. But with a number of debt maturities -- including commercial paper -- before year-end, the issuer could still be pushed into technical default before a restructuring agreement is put in place, Reuters states. Abengoa SA is a Spanish renewable-energy company. ABENGOA SA: Fitch Lowers Issuer Default Rating to 'CC' ------------------------------------------------------ Fitch Ratings has downgraded Spanish engineering and construction group Abengoa, S.A.'s Issuer Default Rating to 'CC' from 'B' and its senior unsecured rating to 'C' from 'B'. The Recovery Rating on its senior unsecured debt has been revised to 'RR5' from 'RR4'. Simultaneously, Abengoa Finance, S.A.U's and Abengoa Greenfield, S.A.U.'s senior unsecured ratings have been downgraded to 'C'/'RR5' from 'B'/'RR4'. This rating action reflects this morning's announcement that Abengoa intends to seek protection under Article 5 bis of the Spanish Insolvency Law (Ley Concursal) and will negotiate with its creditors a debt restructuring. This unexpected announcement follows the release of third-quarter results that saw the company suffer a significant working capital outflow, which impacted its liquidity and leverage. Fitch's lower recovery estimate of 'RR5' reflects a higher amount of 3Q15 debt, as well as a lower valuation of listed and non-listed assets due to, and encompassing, the distressed profile of the company. KEY RATING DRIVERS Capital Increase Terminated Fitch understands from management that Abengoa's planned EUR650 million capital increase is no longer expected to take place. This follows today's announcement that the framework agreement with Gonvarri Corporacion Financiera (Gonvarri), which would have seen the Spanish industrial group as the main investor in this capital increase, subject to a significant liquidity package being provided by financial institutions, has been terminated as condition precedents have not been satisfied. In Fitch's view, this may have been due to insufficient funding from Abengoa's banks and other creditors, relative to the group's liquidity requirements. Protection of the Spanish Insolvency law Following the cancelation of the framework agreement with Gonvarri, the company decided to apply for the protection of the Spanish Insolvency Law. It will allow the company to negotiate with its creditors over the coming months within a defined framework. 3Q15 capital outflows The company disclosed a EUR412 million working capital outflow at the corporate level at end-3Q15 and clarified its working capital outflow, affecting available cash, was EUR604 million for 1H15. This means the company saw a cash outflow of more than EUR1 billion from its working capital during 9M15 compared with its guidance of flat working capital for the full year. Supportive seasonal factors should normally drive working capital inflow in 4Q15; however, it remains unclear how the ongoing events might impact this part of the company's liquidity profile. Very Tight Liquidity Immediately available cash decreased to EUR346 million at end- 3Q15 (end-2Q15: EUR831 million). Abengoa had a negative corporate free cash flow (FCF) of EUR597 mil. for 9M15 (3Q15: minus EUR510 million), due to working capital outflows. This compares with EUR374 million of debt maturing for the remainder of 2015 (including EUR43 million of non-recourse debt in process). Further working capital unwinding could further weigh on liquidity. Abengoa has indicated some progress on its asset disposal plan (non-binding offers), which could be supportive. RATING SENSITIVITIES Positive: Future developments that could lead to positive rating actions include: -- An improved liquidity profile, most likely from significant asset sales or an equity injection from a current investor or third-party Negative: Future developments that could lead to a downgrade include: -- Payment default and further deterioration in liquidity -- Debt restructuring measures or formal insolvency FULL LIST OF RATING ACTIONS Abengoa, S.A. Long-term IDR: downgraded to 'CC' from 'B' Senior unsecured rating: downgraded to 'C'/'RR5' from 'B'/'RR4' Abengoa Finance, S.A.U. Senior unsecured rating: downgraded to 'C'/'RR5' from 'B'/'RR4' Abengoa Greenfield, S.A.U. Senior unsecured rating: downgraded to 'C'/'RR5' from 'B'/'RR4' =========== S W E D E N =========== VERISURE MIDHOLDING: Moody's Assigns B2 Corporate Family Rating --------------------------------------------------------------- Moody's Investors Service assigned a definitive B2 corporate family rating (CFR) and a B2-PD probability of default rating (PDR) to Verisure Midholding AB. Concurrently, Moody's has assigned a definitive B1 rating to the senior secured facilities made available to Verisure Holding AB comprising a EUR300 million revolving credit facility (RCF), EUR1,300 million (equivalent) term loan B and EUR700 million senior secured notes, all of which rank pari passu, and a definitive Caa1 rating to the EUR700 million (equivalent) private senior unsecured notes issued by Verisure Midholding AB. The outlook on all ratings is stable. Moody's has also withdrawn the ratings of Verisure Holding AB, including its CFR of B2, probability of default rating (PDR) of B2-PD, and the B3 rating on the EUR271.5 million Series B senior secured notes. The B1 rating on the EUR700 million Series A senior secured notes was withdrawn on 2 November 2015. RATINGS RATIONALE Moody's definitive ratings for Verisure Midholding AB's CFR and debt facilities are in line with the provisional ratings assigned on October 13, 2015. This follows the completion of the acquisition by Hellman & Friedman of the remaining stake of Bain Capital on October 21, 2015 in the ultimate holding company of Verisure Holding AB and subsequent refinancing of the group's outstanding debt. Headquartered in Malmo, Sweden, Verisure Midholding AB, is a leading provider of monitored alarm solutions across 13 countries in Europe and Latin America. The customer base consists of approximately 1.9 million subscribers and for the last twelve months ended June 30, 2015, it reported revenues of approximately EUR945 million. Rating Outlook The stable outlook reflects Moody's expectation of gradual deleveraging towards 6.5x (based on Moody's adjusted debt / EBITDA) through EBITDA growth whilst cancellation rates and customer acquisition costs remain stable and the business continues to improve its cash flow on a steady-state basis before growth in new subscribers. What Could Change the Rating - Up Positive rating pressure could develop if Verisure reduces its debt / RMR (Recurring-Monthly Revenue) towards 30x and increases free cash flow (before growth spending) to debt above 10% while maintaining a stable cancellation rate and customer acquisition costs. This also assumes no change to the current financial policy with no dividends payments. What Could Change the Rating - Down Downward rating pressure could develop if the company fails to reduce its debt / RMR below 40x within the next 12-18 months, if steady-state cash generation trends towards zero, or if liquidity concerns arise. ============= U K R A I N E ============= NAFTOGAZ NJSC: Fitch Raises LT Issuer Default Ratings to 'CCC' -------------------------------------------------------------- Fitch Ratings has upgraded NJSC Naftogaz of Ukraine's Long-term foreign currency Issuer Default Ratings to 'CCC' from 'CC'. The local currency IDR has been affirmed at 'CCC'. The rating actions follow the upgrade of the sovereign rating to 'CCC' from 'RD'. Naftogaz's ratings are aligned with those of Ukraine, its sole shareholder, and reflect its strong links with the state, the continued weakness of the company's financial profile and its exposure to political risks. Fitch considers that timely financial support from the state remains critical for its solvency as Naftogaz still has a significant operating deficit -- albeit reducing due to staged price liberalization -- caused by the disparity between imported gas prices and domestic gas tariffs for households and heat generation companies. Fitch believes that the company is likely to default without such support. Fitch upgraded Ukraine to 'CCC' as the country has emerged from default on commercial external debt, issuing new bonds on 12 November to holders of USD15 bil. in defaulted Eurobonds. The restructuring pushed out maturities to 2019-2027. Naftogaz is Ukraine's major natural gas production, storage and transportation company. In 2014 it produced 17 billion cubic metres of gas (bcm) and imported 19.3bcm from Russia and the EU. KEY RATING DRIVERS Rating Linked With Sovereign Naftogaz's ratings are aligned with those of Ukraine. This approach reflects Naftogaz group's strategic importance to the state as the sole gas operator of gas transmission system and a guaranteed natural gas supplier, as well as state subsidies and other forms of tangible financial support provided to Naftogaz. The state directly guarantees some of Naftogaz's loans, which is another indication of its support. In addition, Naftogaz's performance is closely monitored by IMF, Ukraine's major lender, which creates incentives for the state to keep Naftogaz adequately funded. Operating Deficit Remains Naftogaz's operating deficit will remain high in 2015, as domestic gas tariffs, especially for heat generation companies, are still insufficient to cover imported gas prices. The oil- indexed imported gas price has decreased in 2015 following falling crude prices, but this has been largely undermined by the hryvnia depreciation and weak receivables collection in certain regions. The IMF memorandum targets Naftogaz's deficit to be eliminated by 2017. Disputes With Gazprom Naftogaz's strained relations with its former major supplier OAO Gazprom (BBB-/Negative) mirror the political tensions between Russia and Ukraine and negatively affect Naftogaz's credit quality. There are a number of claims and legal disputes initiated by both Naftogaz and Gazprom against each other with yet unclear implications. This exposes Naftogaz to significant legal risks. Potential interruption of transit and/or supplies is another risk. Lower Import Prices The decrease in gas prices in the EU gas market (covered 25% of supplies for Naftogaz in 2014 and 70% in 1Q15-3Q15) has led to lower import prices for Naftogaz. Low oil prices are positive for Naftogaz, as prices for imported natural gas are linked to those of oil products with a nine-month lag. In 3Q15, Naftogaz's average import gas price went down to USD266/mcm, compared with USD353/mcm in 3Q14 (-25 yoy). However, lower import prices will have a limited effect on Naftogaz's operating deficit in view of other negative factors, such as the hryvnia depreciation and weak receivables collection in certain regions. Supply Diversification Positive Naftogaz's steps taken to diversify away from the Russian gas should strengthen its business profile as political tensions between the two countries are likely to remain in place. In 2014 Ukraine purchased 14.4bcm of natural gas from Gazprom compared with 4.9bcm sourced from the EU. In 2015 EU countries have taken over as Naftogaz's main gas supplier. Ukraine imports gas from EU through the so called "reverse flow" scheme via Slovakia, Hungary and Poland. Currently the reverse flow capacity is around 58 million cubic metres per day, which technically allows Naftogaz to satisfy most of its gas import needs. KEY ASSUMPTIONS -- The state continues to support Naftogaz through subsidies -- Gradual indexation of gas tariffs -- Natural gas transit volumes about 64bcm in 2015. -- Naftogaz's domestic loans falling due are mostly extended; Gazprombank's loan due 2018 is being repaid according to the schedule RATING SENSITIVITIES Future developments that may, individually or collectively, lead to negative rating action include: -- Sovereign rating downgrade, resulting from intensification of political and/or economic stress, potentially leading to a default on government debt. -- Evidence of less state support. Future developments that may, individually or collectively, lead to positive rating action include: -- Sovereign rating upgrade, resulting from improvement in political stability, progress in implementing economic policy agenda agreed with the IMF and improvement in external liquidity. -- Positive free cash flow from rising domestic gas tariffs and improved receivables collections. -- Greater financial transparency. LIQUIDITY Weak Liquidity Naftogaz's liquidity remains extremely weak and the company is likely to default without state support. At end-2014 its cash balances stayed at around UAH2.3 billion (USD145 million) compared to short-term debt of around UAH16 billion (USD1.0 billion). Fitch expects that Naftogaz will continue to service its USD1.4 billion Gazprombank loan due 2018. Fitch also expects that Ukraine's domestic banks will refinance Naftogaz's loans falling due, as has been the case for the last several years. In October 2015, Naftogaz agreed a USD300 million loan from EBRD to finance purchases of around 1bcm of gas for the coming winter, subject to Naftogaz's corporate governance restructuring and guaranteed by the state. =========================== U N I T E D K I N G D O M =========================== BALLANTYNE RE PLC: S&P Withdraws D Rating on Subordinated Debt -------------------------------------------------------------- Standard & Poor's Ratings Services said that it has withdrawn its ratings on various notes issued by Ballantyne Re PLC. S&P received a request from the sponsor, Scottish Re (U.S.) Inc. to withdraw the ratings in 2010 and opted to maintain unsolicited ratings due to potential market interest. It is apparent there is no longer significant market interest in these notes so S&P is withdrawing its ratings. S&P will maintain a rating on one class of notes--the Class A-2 Series B notes that have a financial guaranty policy in place from Assured Guaranty (UK) Ltd. RATINGS LIST Ratings withdrawn To From Ballantyne Re plc US$250 mil Class A-1 notes US$500 mil Class A-2 Series A notes US$100 mil Class A-3 Series A notes US$100 mil Class A-3 Series B notes US$100 mil Class A-3 Series C notes US$100 mil Class A-3 Series D notes Senior secured debt NR CC US$10 mil Class B-1 notes US$40 mil Class B-2 notes Subordinated debt NR D FAIRLINE BOATS: MP to Hold Session for Workers Today ---------------------------------------------------- Stephanie Weaver at Northamptonshire Telegraph reports that workers affected by the redundancies at Fairline Boats are being invited to a drop-in session to look at the options available to them. MP Tom Pursglove, for Fairline bases at Corby and East Northamptonshire, has organized the event for any employees or members of their family to go along and speak to various organizations about what help is available, Northamptonshire Telegraph relates. It comes after the firm, which has bases in Oundle and Corby, warned of "significant" job losses as they battle to keep the company afloat, Northamptonshire Telegraph notes. Earlier this month, the company said it has begun a consultation period with staff about possible redundancies as it seeks to stem financial losses, Northamptonshire Telegraph relates. The 52-year-old business also announced it is seeking agreement from its creditors for a Company Voluntary Arrangement to help it repay debt, Northamptonshire Telegraph relays. The drop-in event is being held at the East Northamptonshire Council offices in Cedar Drive, Thrapston, between 12:30 p.m. and 2:30 p.m. on Friday, Nov. 27, Northamptonshire Telegraph discloses. Fairline Boats is a luxury boat manufacturer. MCLAREN HOMES: Developer Files For Insolvency --------------------------------------------- ColnbrookViews reports that McLaren Homes Ltd, which took over the Heathrow Gateway development site, also known as Colnhenge, from Rigsby New Homes following its collapse in 2008, filed for insolvency and appointed a liquidator on Nov. 13. Barrett Maidenhead, the original developer, first applied for permission to develop 58 flats on the former Rogan's Garage site in late 2004. After gaining approval in 2005, it revised its plans and won a new permission in 2006. Since then the 'Heathrow Gateway' project appears to have been jinxed. The site passed to Rigby New Homes, which applied for a new permission in 2007. The eventual approval came four years later in November 2011, but not before Rigby's collapse at the height of the crash. McLaren Homes won planning permission (and a number of major concessions from Slough Borough Council) in February this year. Its declaration of insolvency, filed on Friday the 13th, leaves the derelict site once again in limbo, ColnbrookViews relates. The report says there will inevitably be concern over the site's future. The construction sector continues to struggle. While overall economic growth slowed to 0.5 per cent from 0.7 per cent over the past three months, construction plummeted by 2.2 per cent, the report discloses. ColnbrookViews relates that nevertheless the site occupies a key position on the approach into Colnbrook. In August last year, six months ahead of its planning approval, McLaren advertised a tender for construction for the complex then valued at GBP4.5 to GBP5.5 million, the report recalls. And accounts filed with Companies House indicate the property has already changed hands. In October last year, McLaren declared fixed assets of GBP2.4 million. But it appears that the company may have offloaded the property within months of winning planning permission, the report says. Intriguingly, the company shortened its accounting period and the last set of accounts -- to July 31 -- record that the company had no fixed assets, but a debtor of GBP2.4 million, the report states. Sole director Robin Ellis took advantage of small company exemptions to declare only the minimum information. Nothing has been filed with the Land Registry to date, notes ColnbrookViews. Mr. Ellis, of Waltham St. Lawrence, Reading, remains director of 36 active companies, and 3 others that are currently in liquidation. He was also director of 12 further companies that have now been dissolved, the report adds. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2015. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000 or Nina Novak at 202-362-8552. * * * End of Transmission * * *