TCREUR_Public/151216.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

         Wednesday, December 16, 2015, Vol. 16, No. 248

                            Headlines

C Z E C H   R E P U B L I C

NEW WORLD: Refinancing Unlikely, May Opt for Liquidation


F R A N C E

ALLIANCE AUTOMOTIVE: S&P Affirms 'B+' CCR; Outlook Negative
WHITE TOWER 2007-1: Fitch Cuts Ratings on 4 Note Classes to 'Dsf'


G R E E C E

OCEAN RIG: Moody's Lowers Corporate Family Rating to Caa2


I R E L A N D

MCWILLIAM PARK: Judge Confirms Kierance Wallace as Examiner
OAK HILL I: Moody's Raises Rating on Class E Notes to Ba1


I T A L Y

ASTALDI SPA: S&P Revises Outlook to Negative & Affirms 'B+' CCR


K A Z A K H S T A N

SAGA CREEK: Declared Bankrupt by Akmola Court


N E T H E R L A N D S

CREDIT EUROPE: Fitch Affirms 'BB-' Issuer Default Ratings
E-MAC DE RMBS: Fitch Affirms 'CCsf' Ratings on Class E Debt


P O R T U G A L

BANCO INTERNACIONAL: Ability to Pay Bailout Under Scrutiny


R U S S I A

AUTOBANN: Moody's Assigns B1 Rating to RUB3BB Sr. Unsec. Bonds
KOKS OAO: S&P Revises Outlook to Negative & Affirms 'B' CCR
KRASNODAR REGION: Fitch Assigns 'BB' Issuer Default Ratings


U N I T E D   K I N G D O M

AMDIPHARM MERCURY: S&P Withdraws 'B+' CCR After Debt Repayment
AQUAMARINE POWER: Administrators Seek Buyers for IP Assets
BRIDON GROUP: Moody's Review Ca-PD PDR with Direction Uncertain
ROYAL BANK: Moody's Affirms Ba1 Senior Unsecured Debt Rating
SKETCHLEY GRANGE: Focus Hotels Buys Hotel Out of Administration

UK COAL: Kellingley Colliery to Shut Down on December 18


X X X X X X X X

* Diamond Miners May Opt to Lower Prices to Restore Demand


                            *********


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C Z E C H   R E P U B L I C
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NEW WORLD: Refinancing Unlikely, May Opt for Liquidation
--------------------------------------------------------
Bloomberg News' Krystof Chamonikolas reports that in the case of
New World Resources Plc, Komercni analyst Josef Nemy reiterates
in a report to client a "sell" recommendation with no price
target.

It's "rather unlikely" for NWR to refinance EUR35 million loan
coming due in October 2016, Bloomberg relates.

"We expect NWR to remain unprofitable in the coming years" as
falling revenue is making turnaround 'almost impossible',"
Mr. Nemy, as cited by Komercni, Bloomberg notes.  "We believe the
management will take steps toward the company's liquidation
already in the first half of 2016."

While stock's "high volatility may bring big short-term gains"
for investors, Komercni's projections imply that "the share price
will trend toward zero", Bloomberg notes.

As reported by the Troubled Company Reporter-Europe on Dec. 4,
2015, Bloomberg News related that Industry and Trade Minister Jan
Mladek said the Czech government won't buy the mining unit of
NWR.  The company has suffered as the global glut depressed
prices, making its mines unprofitable, Bloomberg disclosed.  The
company has gone through forced debt restructuring last year and
analysts estimate it may run out of cash as early as next year,
according to Bloomberg.

New World Resources Plc is the largest Czech producer of coking
coal.



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ALLIANCE AUTOMOTIVE: S&P Affirms 'B+' CCR; Outlook Negative
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' long-term
corporate credit rating on Alliance Automotive Holding Ltd, a
French auto spare parts distributor.  The outlook is negative.

At the same time, S&P affirmed its 'B+' issue rating on the
instruments issued by Alliance Automotive's subsidiary, Alliance
Automotive Finance Plc, namely the existing EUR290 million fixed-
rate notes, and the EUR100 million floating-rate notes.  The
recovery rating on these instruments is '4', indicating S&P's
expectation of average recovery in the event of a payment
default, in the lower half of the 30%-50% range.

In addition, S&P affirmed its 'BB' issue rating on the
EUR50 million super senior revolving credit facility (RCF) issued
by Alliance Automotive Investment Ltd.  The recovery rating on
this facility is '1', indicating S&P's expectation of very high
recovery in the event of a payment default, in the 90%-100%
range.

The rating action reflects that, despite Alliance Automotive's
recent acquisition of privately owned German spare parts
distributor Coler GmbH & Co. KG for EUR39 million that will bring
total acquisition spending to EUR90 million in 2015, the
company's debt has not increased, and our assessment of its
financial risk profile as aggressive remains unchanged.  The
transaction, announced on Dec. 9, 2015, was funded through a mix
of equity and debt.  The company's financial sponsor, Blackstone,
along with the founding shareholders, made a EUR25 million pro
rata equity contribution.  The remaining EUR14 million was
financed with residual cash proceeds from the EUR65 million bond
tap made in May this year that has been now fully used to fund
acquisitions.

The company engaged in an active growth strategy prompted by its
shareholders.  S&P estimates that acquisitions will total about
EUR90 million in 2015, significantly above S&P's previous
expectation of EUR41 million.  However, S&P expects the company's
core credit metrics will remain in line with the current rating.
They are supported by a EUR25 million equity injection from the
owners, which S&P sees as a positive effort to contain gross debt
increases.  For 2016, S&P also factors in EUR10 million of EBITDA
upside from Coler.

In 2015, S&P expects the company's adjusted funds from operations
(FFO) to debt will be about 13% and adjusted debt to EBITDA will
be about 4.6x.  Assuming the company continues making
acquisitions funded from its free operating cash flow (FOCF), S&P
expects the credit metrics will slightly improve over time.
However, more aggressive debt-funded transactions could hamper
the deleveraging trend.

S&P's gross debt calculation for end-2015 includes EUR390 million
notes, about EUR25 million in overdrafts that the company uses on
ongoing basis to fund its receivables in the trading groups, and
another EUR10 million of local debt and finance leases.  S&P's
adjustments include about EUR30 million for operating leases and
EUR5 million for pension obligations.  S&P do not net cash from
debt due to private equity ownership of the company, and S&P
gives equity treatment to the full amount of preferred equity
certificates (estimated at EUR150 million).

S&P's business risk profile assessment is chiefly constrained by
the competitive and deeply fragmented nature of the independent
automotive aftermarket in Europe.  It is furthermore limited by
the company's narrow geographic diversification, with France
accounting for about 85% of its EBITDA in 2014, while the rest is
generated in the U.K.  With the acquisition of Coler in Germany,
the company gains a footprint in a new geographic market.
However, S&P expects the contribution of the German operations
will remain limited in the near term and therefore will not
martially strengthen Alliance Automotive's geographic breadth.
S&P nevertheless understands that the company embarked on a
consolidation path whereby it intends to further expand outside
France.  The new acquisitions may have a positive impact on the
company's historically steady profitability on the back of
purchasing synergies and economies of scale.  However, S&P notes
the risks attached to the integration of new companies, as well
as entering new geographic markets.

S&P continues to apply a negative adjustment of one notch to the
corporate rating because, based on S&P's comparable ratings
analysis.  S&P believes that Alliance Automotive has a less
favorable position than its peer Rhiag, which enjoys a dominant
market share in its domestic Italian market where it mainly sells
to wholesalers.

Based on the documentation S&P has reviewed, the RCF is subject
to solely one covenant: a ratio of the drawn RCF amount to
reported EBITDA of less than 1.5x.  A covenant breach would not
result in an event of default, according to the documentation.
The covenant is not currently tested because the RCF is undrawn.

The negative outlook reflects the risk that continued sizable
acquisitions may significantly outpace Alliance Automotive's FOCF
generation capacity and bring the company's debt-to-EBITDA ratio
above 5x, as it embarks on a more aggressive growth strategy than
S&P previously expected.  In S&P's base case, it assumes that
Alliance Automotive will be able to balance its acquisition
appetite with its capacity to integrate the new companies,
especially in the new German market.

S&P could lower the rating if the company's adjusted debt to
EBITDA increased above 5.0x.  This could occur if acquisition
spending led to higher gross debt amounts, and the increase in
leverage were not entirely offset by EBITDA growth.  S&P would
also consider a more aggressive financial policy as negative for
the rating.

S&P could revise its outlook to stable if the company
demonstrated a supportive financial policy and balanced
acquisition approach under which the adjusted debt-to-EBITDA
ratio remained in the middle of the 4.0x-5.0x range in 2016-2017.
For an outlook revision to stable, S&P would also need to observe
steady performance and EBITDA growth, namely benefitting from
accretive acquisitions and an expanding footprint.


WHITE TOWER 2007-1: Fitch Cuts Ratings on 4 Note Classes to 'Dsf'
-----------------------------------------------------------------
Fitch Ratings has downgraded White Tower Europe 2007-1's floating
rate notes ratings and simultaneously withdrawn them as follows:

  EUR0 million class B (XS0300056198): downgraded to 'Dsf' from
  'CCsf'; rating withdrawn

  EUR0 million class C (XS0300056271): downgraded to 'Dsf' from
  'Csf'; rating withdrawn

  EUR0 million class D (XS0300056354): downgraded to 'Dsf' from
  'Csf'; rating withdrawn

  EUR0 million class E (XS0300056511): downgraded to 'Dsf' from
  'Csf'; rating withdrawn

White Tower 2007-1 was originally a securitization of six
commercial mortgage loans originated by Societe Generale
(A/F1/Stable). As of end-October 2015, no loans remained.

KEY RATING DRIVERS

The collateral for the last remaining loan (the Heron City
shopping centre) has now been liquidated. While in excess of the
last valuation (EUR36.9 million), net sale proceeds (EUR42
million, of which EUR41.7 million was applied as principal)
resulted in a considerable loss on the EUR105.7 million loan.
This loss was applied to the notes in reverse order of ranking at
EUR13.8 million to the class B notes, EUR19.5 million to the
class C notes, EUR19.3 million to the class D notes and EUR11.7
million to the class E notes.

As no issuer collateral remains, residual bond balances have been
written off, and the ratings withdrawn. Fitch will no longer
provide ratings or analytical coverage of the issuer

RATING SENSITIVITIES

Not applicable

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.



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OCEAN RIG: Moody's Lowers Corporate Family Rating to Caa2
---------------------------------------------------------
Moody's Investors Service downgraded Ocean Rig UDW Inc.'s
Corporate Family Rating to Caa2 from Caa1, and Probability of
Default Rating (PDR) to Caa2-PD/LD from Caa1-PD.  Moody's also
downgraded the rating of Ocean Rig's unsecured notes to Ca from
Caa3, as well as the rating on the senior secured term loan B at
Drillships Ocean Ventures Inc. (DOV), a subsidiary of Ocean Rig,
to Caa2 from Caa1.  Concurrently, Moody's downgraded the rating
on the senior secured term loan B1 borrowed by Drillships
Financing Holding Inc. (DFHI) to Caa2 from Caa1 and the rating on
the secured notes issued by Drill Rigs Holdings Inc. (Drill Rigs)
to Caa3 from Caa2, both are also subsidiaries of Ocean Rig.  The
outlook on all ratings remains negative.

Ocean Rig has repurchased a principal amount of USD268.1 million
of the senior unsecured notes due in 2019 and USD156.3 million of
the senior secured notes due in 2017.  The purchase prices were
not disclosed but the resulting gain to the company of USD173.5
million implies a material discount to par.  Moody's considers
the transaction as a distressed exchange for the senior secured
notes and the senior unsecured notes, which Moody's views as a
default. As noted above, Moody's has appended the /LD indicator
to the Caa2-PD PDR to reflect the limited default; the /LD
indicator will be removed after three business days.

RATINGS RATIONALE

The rating action reflects Moody's view that the current leverage
is high relative to current business conditions, with an
untenable capital structure if current conditions persist,
coupled with an expectation that the company could carry further
debt buybacks at a discount to par which could again be
classified as a distressed exchange.

Furthermore, whilst the debt buy-back will slightly improves the
company's credit metrics through lower outstanding gross debt and
interest burden going forward, it does not alleviate the
increased liquidity pressures that the company will face over the
next two years since the net discount achieved on 2017 debt is
outweighed by the cash used to purchase 2019 maturities.
Although Ocean Rig's liquidity is adequate for the next 12 to 18
months, Moody's expects liquidity pressure from the unfunded
newbuild capex in late 2016 and first half 2017, refinancing risk
associated with the October 2017 maturity of the secured notes
and tightening covenant headroom that year.  The company needs to
pay for a newbuild rig (the Ocean Rig Santorini), to be delivered
in June 2017, and for which there is not yet a financing in place
as well as refinance or repay the remaining USD644 million
secured notes maturing in October 2017.  Whilst the company
managed to issue USD200 million of equity in June 2015, Moody's
cautions that the company's ability to access the capital markets
could become constrained due to the strong negative trends in the
offshore drilling industry, which will remain deeply entrenched
through 2017.

Moody's anticipates the company's credit metrics will deteriorate
in 2016 and 2017 as the majority of the company's rigs will roll-
off contract over the next two years.  These rigs will either be
stacked if no employment is found or in the best case, re-
contracted at significantly lower day-rates.  Sustained
weaknesses in crude prices and a steady supply of newbuilds will
depress day-rates and create significant stress on the sector.
As of Sept. 30, 2015, and pro-forma for the debt buy-back, the
company's Moody's-adjusted leverage stood at 4.6x.

More positively, the ratings reflect: (1) the strong USD3.8
billion contract backlog as of 1 December 2015, with 100% and 75%
of calendar days under contract in the remaining 2015 and full
year 2016 respectively, (2) the young and technologically
advanced fleet, with all drillships built within the last five
years, and (3) recent industry leading operating performance with
quarterly contracted operating efficiency of 95% or above over
the last twelve months and improved fleet average operating
expenses.

RATING OUTLOOK

The negative outlook reflects the company's untenable capital
structure, and the weak offshore drilling environment and the
uncertainty regarding the duration of this downturn which could
severely stress the company's liquidity profile.

WHAT COULD CHANGE THE RATING UP/DOWN

The rating could be downgraded if the aforementioned liquidity
pressures are not addressed and/or the company's fleet
operational efficiency materially deteriorates.  Conversely, the
rating could be upgraded if the aforementioned liquidity
pressures are resolved and the fleet operates at high levels of
utilization resulting in a sustainable capital structure.  Any
potential upgrade would most likely be dependent on an
improvement of market conditions.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global
Oilfield Services Industry Rating Methodology published in
December 2014.

With its executive office located in Cyprus, management offices
in Greece and incorporated in the Marshall Islands, Ocean Rig UDW
Inc. is an oilfield services company focused on ultra-deepwater
exploration and production drilling.  Its operating fleet
consists of two harsh environment fifth generation
semisubmersibles, four sixth generation and four seventh
generation drillships, with a further three seventh generation
drillships under construction.  It is listed on the NASDAQ and
its largest shareholder is DryShips Inc., a US-listed drybulk
shipping company, which held a stake of 40.4%.



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MCWILLIAM PARK: Judge Confirms Kierance Wallace as Examiner
-----------------------------------------------------------
Mary Carolan at The Irish Times reports that an examiner has been
confirmed for McWilliam Park Hotel, which employs 122 people.

Ms. Justice Marie Baker said for reasons including the number of
persons employed by the hotel, in Claremorris, and its role in
the local economy of a west of Ireland town, she would confirm
examinership, The Irish Times relates.

Claremorris Tourism Ltd. and MOPB Developments, owner and
operator of the hotel, had petitioned the High Court judge to
confirm the appointment of Kieran Wallace of KPMG as examiner,
The Irish Times discloses.

In her reserved judgment, Ms. Justice Baker rejected arguments
against examinership advanced by Coney Investments Designated
Activity Company (a fund that acquired the company's loans from
Ulster Bank); the Revenue, which is owed EUR735,000; and John
Killeen, a shareholder and former director of MOPB, who is suing
it for EUR974,775, The Irish Times relays.

Coney claimed the hotel had no real prospect of survival as a
going concern, The Irish Times notes.

In her judgment, the judge, as cited by The Irish Times, said
while both CTL and MOPB are insolvent, with debts of EUR19
million mostly owed to Ulster Bank (now Coney), the hotel
business is profitable, although vulnerable to demands of lenders
who had advanced monies for fit-out of the hotel.

McWilliam Park Hotel is based in Co Mayo.


OAK HILL I: Moody's Raises Rating on Class E Notes to Ba1
---------------------------------------------------------
Moody's Investors Service announced that it has taken rating
actions on these classes of notes issued by Oak Hill European
Credit Partners I P.L.C.:

  EUR300,000,000 (current balance EUR182.56 mil.) Class A Senior
   Secured Floating Rate Notes due 2022, Affirmed Aaa (sf);
   previously on Sept. 8, 2011, Upgraded to Aaa (sf)

  EUR28,500,000 (current balance EUR17.34 mil.) Class B Senior
   Secured Deferrable Floating Rate Notes due 2022, Affirmed
   Aa1 (sf); previously on Sept. 8, 2011, Upgraded to Aa1 (sf)

  EUR11,750,000 (current balance EUR7.15 mil.) Class C-1 Senior
   Secured Deferrable Floating Rate Notes due 2022, Upgraded to
   A1 (sf); previously on Sept. 8, 2011, Upgraded to A2 (sf)

  EUR13,250,000 (current balance EUR8.06 mil.) Class C-2 Senior
   Secured Deferrable Fixed Rate Notes due 2022, Upgraded to
   A1 (sf); previously on Sept. 8, 2011, Upgraded to A2 (sf)

  EUR25,000,000 (current balance EUR15.21 mil.) Class D Senior
   Secured Deferrable Floating Rate Notes due 2022, Upgraded to
   Baa1 (sf); previously on Sept. 8, 2011, Upgraded to Baa3 (sf)

  EUR23,000,000 (current balance EUR14.00 mil.) Class E Senior
   Secured Deferrable Floating Rate Notes due 2022, Upgraded to
   Ba1 (sf); previously on Sept. 8, 2011, Upgraded to Ba3 (sf)

  EUR6,000,000 (current rated balance EUR1.04 mil.) Class R
   Combination Notes due 2022, Upgraded to Aa3 (sf); previously
   on Sept. 8, 2011, Upgraded to A1 (sf)

Oak Hill European Credit Partners I P.L.C., issued in July 2006,
is a collateralised loan obligation (CLO) backed by a portfolio
of mostly high-yield senior secured European loans managed by Oak
Hill Advisors (Europe), LLP.  The transaction's reinvestment
period ended in August 2012.  Subject to certain conditions, the
transaction provides for pro-rata amortization of rated notes
provided the aggregate of performing par, principal proceeds and
recoveries on defaults is in excess of EUR 220 million;
accordingly, all rated notes have been paying down pro-rata, with
current balances representing c 60.8% of closing balances.

RATINGS RATIONALE

According to Moody's, the rating actions taken on the notes are
the result of deleveraging on the last two payment dates.  Rated
notes have paid down by EUR70.32 million (17.5% of their closing
balances) on the February and August 2015 payment dates.  Total
performing collateral reported by the trustee amortized from
EUR346.84 million in February 2015 to EUR316.09 million in August
2015; as at November 2015 aggregate collateral is reported at
EUR276.24 million, which includes EUR62.30 million of scheduled
and unscheduled principal proceeds.  While the amount of
principal proceeds which will be reinvested is uncertain, the
aggregate collateral amount is now closer to the threshold of EUR
220 million, when the rated notes pay-down will switch from pro-
rata to sequential.

As per the trustee report dated November 2015, Class A, Class B,
Class C, Class D, and Class E OC ratios are reported at 151.37%,
138.24%, 128.46%, 119.98%, and 113.10% compared to February 2015
levels of 147.53%, 134.73%, 125.20%, 116.93%, and 110.23%
respectively.  Over this period, the performance of the portfolio
was steady, with reported WARF improving marginally from 1998 to
1843, diversity score declining from 28 to 24,and the weighted
average spread falling from 3.43% to 3.18%.

The ratings of the Combination Notes address the repayment of the
Rated Balance on or before the legal final maturity.  For Class R
notes, the 'Rated Balance' is equal at any time to the principal
amount of the Combination Note on the Issue Date increased by the
Rated Coupon of 0.25% per annum, accrued on the Rated Balance on
the preceding payment date minus the aggregate of all payments
made from the Issue Date to such date, either through interest or
principal payments.  The Rated Balance may not necessarily
correspond to the outstanding notional amount reported by the
trustee.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.  In its base
case, Moody's analyzed the underlying collateral pool as having a
performing par and principal proceeds of EUR276.5 million, a
weighted average default probability of 16.08% (consistent with a
WARF of 2478 over a weighted average life of 4.01 years), a
weighted average recovery rate upon default of 47.14% for a Aaa
liability target rating, a diversity score of 24 and a weighted
average spread of 3.18%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool.  The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool.  In each case, historical and market
performance and a collateral manager's latitude to trade
collateral are also relevant factors.  Moody's incorporates these
default and recovery characteristics of the collateral pool into
its cash flow model analysis, subjecting them to stresses as a
function of the target rating of each CLO liability it is
analyzing.

Methodology Underlying the Rating Action:

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

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

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

Moody's also ran models in which it assumed varying levels of
reinvestment of the principal proceeds into assets similar in
credit quality, spread and tenor to the current portfolio.
Changing the proportion of principal proceeds reinvested from 50%
to 100% resulted in model outputs that were unchanged for Classes
A and B, and within one notch of the 50% case results for Classes
C, D, and E.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
note, in light of uncertainty about credit conditions in the
general economy.  CLO notes' performance may also be impacted
either positively or negatively by 1) the manager's investment
strategy and behavior and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties because of embedded ambiguities.

Additional uncertainty about performance is due to:

  1) Portfolio amortization: The main source of uncertainty in
this transaction is the pace of amortization of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortization could accelerate as a consequence of high loan
prepayment levels or collateral sales by the collateral manager
or be delayed by an increase in loan amend-and-extend
restructurings or significant re-investment of unscheduled
principal proceeds. Fast amortization would usually benefit the
ratings of the notes beginning with the notes having the highest
prepayment priority.

In addition to the quantitative factors that Moody's explicitly
modeled, qualitative factors are part of the rating committee's
considerations.  These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio.  All information available
to rating committees, including macroeconomic forecasts, input
from other Moody's analytical groups, market factors, and
judgments regarding the nature and severity of credit stress on
the transactions, can influence the final rating decision.



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ASTALDI SPA: S&P Revises Outlook to Negative & Affirms 'B+' CCR
---------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
incorporated civil engineering and construction company Astaldi
SpA to negative from positive.  At the same time, S&P affirmed
its 'B+' long-term corporate credit rating on the company and its
'B+' issue rating on its debt.  The recovery rating on this debt
remains unchanged at '4'.

The outlook revision reflects S&P's view that, in 2015 and 2016,
Astaldi's leverage will continue to increase and its liquidity
position might weaken due to decreasing headroom under financial
covenants.  The outlook revision also reflects S&P's opinion that
the upside scenario it described last year has not materialized
in 2015.  When S&P revised the outlook to positive in December
2014, it expected that Astaldi's announced disposal of a
significant portion of its concessions assets would likely enable
it to meaningfully reduce its adjusted debt in 2015.  However, so
far the transaction has progressed slower than S&P had expected.
Given the higher leverage metrics that S&P now forecasts and
based on its assumption of potential cash proceeds from the sale,
S&P no longer believes that if the transaction is completed in
2016 and the company uses the generated cash proceeds to repay
debt, this would be sufficient to improve its leverage metrics
and therefore S&P's view of its financial risk profile to a level
commensurate with a higher credit rating.

Astaldi is currently preparing the disposal of several of its
concession assets under operation.  It plans to sell its shares
in A4 Holding, which operates motorways in Italy, in early 2016.
Several more disposals may follow in the second half of 2016.
However, the exact timing of, and amount of proceeds from the
transactions remain unclear and S&P do not include the potential
effects of these sales in its base-case scenario.

At the same time, Astaldi continues to win new contracts and make
sizable ongoing investments in working capital, capital
expenditure (capex), and concessions.  S&P expects that in 2016-
2018 the core construction business, which provides about 99% of
the company's revenues, will continue steady growth on the back
of a healthy backlog.

S&P's base-case scenario assumes:

   -- Revenue growth close to 10% in 2015, continuing at about 5%
      annually in 2016-2018 on the back of the existing backlog
      and new order intake;

   -- Adjusted EBITDA margin of about 11%-12%;

   -- Restoration of working capital in first-half 2016 and
      modest investments going forward;

   -- Capex and investments in concessions totaling around EUR100
      million-EUR150 million each year;

   -- Dividends of around EUR20 million-EUR25 million per year;
      And

   -- Negative free operating cash flow (FOCF) and higher
      adjusted debt in 2015.

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

   -- In 2015 and 2016, S&P expects funds from operations (FFO)
      to debt to be around 9.5%; and

   -- Standard & Poor's-adjusted debt to EBITDA to be around
      4.5x-4.7x.

S&P continues to assess Astaldi's business risk profile as fair,
reflecting the moderately high risks S&P sees as inherent in the
engineering and construction industry.  Fixed-price contracts in
Astaldi's construction business (which account for about half of
its total contracts) can lead to cost overruns.  Moreover, the
company is exposed to operating and contract risks, and potential
execution issues stemming from large projects within its
portfolio.  The rating is also constrained by Astaldi's moderate
size, by global standards, and by exposure to moderately high
country risks.  These are gradually increasing as international
activities -- especially in Russia, Turkey, and other emerging
markets -- now provide a higher portion of the company's
consolidated revenues.  Revenues from international operations
increased to more than 80% of total revenues in the first nine
months of 2015, compared with less than 75% in the same period of
2014.  Astaldi's performance is closely tied to the spending
cycle for civil engineering and nonresidential construction,
including in Italy, which faces ongoing austerity measures.

Astaldi's business risk profile is supported by its solid market
positions in the transportation infrastructure industry, good
visibility on revenues thanks to a sizable order backlog in
execution (EUR9.3 billion as of Sept. 30, 2015 in construction
and EUR8.2 billion in concessions), a track record of solid
contract executions, and relatively high profit margins for a
construction company.

S&P continues to assess Astaldi's financial risk profile as
highly leveraged, reflecting S&P's expectation that in 2015 and
2016 its leverage will continue to increase.  Adjusted FFO to
debt will likely stay below 10%, and adjusted debt to EBITDA will
be higher than 4.5x.  For both years, S&P anticipates investments
in working capital, capex, and concessions will lead to negative
FOCF and higher adjusted debt.

The negative outlook reflects S&P's view that Astaldi's
increasing leverage could lead to limited headroom remaining
under its financial covenants when they are tested in December
2015 and June 2016.

S&P could lower the ratings within the next 12 months if there is
persistent limited headroom under the company's financial
covenants.  S&P could also lower the ratings if working capital
inflow in the first half of 2016 is lower than S&P anticipates in
its base-case scenario, resulting in higher leverage metrics.

S&P could revise the outlook to stable over the next six to 12
months if the company has comfortable headroom under its
financial covenants on a sustained basis, and inflows of working
capital in the next couple of months are in line with S&P's base-
case scenario.

Rating upside is currently limited, in S&P's view.  It could come
from Astaldi substantially reducing its leverage by limiting
working capital financing and using proceeds from the planned
sale of concession assets to repay debt, so that adjusted FFO to
debt ratio improved comfortably above 12% for a sustained period
of time.  S&P do not currently view this scenario as likely.

S&P applies a one-notch upward adjustment for its comparable
rating analysis, reflecting its view that Astaldi's relative
financial risk profile is at the stronger end of the range
compared with peers.



===================
K A Z A K H S T A N
===================


SAGA CREEK: Declared Bankrupt by Akmola Court
---------------------------------------------
Alhambra Resources Ltd., an international gold explorer and
producer, on Dec. 14 disclosed that on December 7, 2015, the
Specialised Interdistrict Economic Court of the Akmola Oblast in
Kazakhstan ordered that Alhambra's wholly-owned Kazakhstan
subsidiary Saga Creek Gold Company JV LLP be declared bankrupt.
As a matter of Kazakhstan law, the Bankruptcy Order came into
legal effect immediately on December 7, 2015.  A copy of the
Bankruptcy Order became available to Saga Creek on December 14,
2015.  The Bankruptcy Order provides, among other things, that
the management of Saga Creek, including its property and affairs,
shall be vested in a bankruptcy trustee from the date of the
Bankruptcy Order.  The trustee will now commence the bankruptcy
procedure of Saga Creek in accordance with the bankruptcy law of
Kazakhstan.

The Bankruptcy Order has been issued at the time when Alhambra
has been trying to complete a financing to provide the
Corporation with the working capital it requires to continue its
mining operations in Kazakhstan.  Alhambra has suspended those
operations for some time due to a series of actions and omissions
of the Government of Kazakhstan against Saga Creek, that Alhambra
and its legal counsel believe are both unfair and inequitable
including, without limitation, the assessment of taxes on the
company in the amount of tens of millions of dollars and, the
withholding of required mining and financing approvals, all in
breach of the company's investment contract with the Government
and the applicable law.  Alhambra's attempts to seek improvement
of the situation with the Government, including numerous
petitions to and meetings with the relevant Government officials,
have been unsuccessful.  This conduct by the Government has
frustrated Alhambra's investment activities in Kazakhstan,
drained the Corporation's resources and culminated in the
bankruptcy of Saga Creek.

To defend its position, Alhambra has put the Government on notice
that it intends to submit the matter to arbitration at the
International Centre for Settlement of Investment Disputes
(ICSID) if an amicable resolution to the matter is not promptly
achieved. To represent Alhambra in this matter, the Corporation
has retained Jones Day, one of the world's leading law firms in
investor-State arbitration.

John J. Komarnicki, Chairman and Chief Executive Officer of
Alhambra, commented, "We are considering all available legal
options to vigorously defend our position, including starting an
international arbitration procedure against the Government
seeking full compensation of all losses suffered in Kazakhstan if
the Government does not take immediate action to resolve the
situation.  We intend to vigorously press the process to its
conclusion and ensure that Alhambra's rights are fully
vindicated."

The Corporation will provide further updates as the matter
progresses.

                         About Alhambra

Alhambra -- http://www.alhambraresources.com-- is a Canadian
based international exploration and gold production corporation
producing gold in Kazakhstan.

Alhambra's common shares are listed in Canada on The NEX Board
under the symbol ALH.H; in the United States on the Over-The-
Counter Pink Sheets Market under the symbol AHBRF; and in Germany
on the Frankfurt Open Market under the symbol A4Y.



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


CREDIT EUROPE: Fitch Affirms 'BB-' Issuer Default Ratings
---------------------------------------------------------
Fitch Ratings has affirmed Credit Europe Bank NV's (CEB) and its
Russia-based subsidiary, Credit Europe Bank (CEBR)'s, Long-term
Issuer Default Ratings (IDRs) at 'BB-'. The Outlook on CEB's IDR
is Stable. The Outlook on CEBR's IDR is Negative. A full list of
rating actions is available at the end of this rating action
commentary.

KEY RATING DRIVERS

CEB's IDRS AND VR
CEB's Long-term IDR and Viability Rating (VR) reflect the bank's
high exposure to volatile operating environments and cyclical
industries inherent to its business model. They also reflect a
niche but established trade finance franchise, the bank's
acceptable asset quality, and sound liquidity and funding.

The Stable Outlook reflects Fitch's view that CEB's continued
weak performance in Russia will be offset by its other operating
markets, and over the longer term, a gradual shift towards trade
finance and Turkish corporate lending. Nonetheless, CEB will
remain concentrated in emerging economies, and at end-June 2015,
exposures to Russia, Turkey and Romania represented 35%, 21% and
16% of its gross loan book respectively.

The quality of the Russian and Romanian exposures is weak. Russia
continues to struggle with recession and Romania mortgage lending
was affected by the appreciation of the Swiss franc in the
beginning of 2015. The better-performing Turkish loan book and
exposures to developed markets somewhat offset these pressures.

Non-performing loans (NPLs) rose to 7.7% of gross loans at end-
June 2015 (5.8% at end-2014), and individual provisions are only
moderate, in Fitch's view, and expose CEB's equity to
fluctuations in collateral values (net NPLs equaled a significant
32% of Fitch core capital, (FCC)). CEB's sizeable portfolio of
sub-standard loans (6.1% of gross loans at end-June 2015) also
represents a risk for the bank.

CEB is exposed to cyclical industries, particularly construction
and real estate, which made up over a quarter of corporate loans
(1.2x FCC) at end-June 2015. Single-name concentration remains
high, with the 20-largest borrowers accounting for almost half of
corporate loans (1.8x FCC). Fitch expects the bank will maintain
these large exposures under close scrutiny.

Granular deposits are CEB's main funding source, and most are
collected in the Netherlands and Germany (44% of total
liabilities at end-June 2015). A vast majority of deposits is
covered by the Dutch deposit guarantee, which contributes to
funding stability. CEB also accesses wholesale markets,
particularly through its Russian subsidiary in the Russian
market. Maintaining a significant liquidity buffer is key and
liquid assets amounted to 16% of total assets at end-June 2015.

CEB's capitalization strengthened in 4Q14-1Q15 following the
conversion of USD126 million subordinated perpetual debt into
common equity, and a EUR100 million equity injection from CEB's
ultimate owner. The bank's consolidated common equity Tier 1
(CET1) capital ratio of 10.8% at end-June 2015 was acceptable,
although remains exposed to high concentrations and unreserved
NPLs.

CEB's profitability weakened in 2014-1H15, mainly as a result of
shrinking asset yield in euro terms and higher loan impairment
charges in Russia. Fitch expects CEB's lending in developed
markets and to Turkish borrowers to be the main profit generator
in 2H15 and 2016 (50% of pre-impairment profit in 1H15 and 100%
of net income). The Russian business should break-even, provided
loan impairment charges are contained.

CEB's SUPPORT RATING AND SUPPORT RATING FLOOR

CEB's Support Rating of '5' and Support Rating Floor of 'No
Floor' reflect Fitch's view that support from the Dutch state
cannot be relied upon. This reflects the bank's lack of systemic
importance in the Netherlands, as well as legislative, regulatory
and policy initiatives (including the implementation of the Bank
Recovery and Resolution Directive (BRRD)) that have substantially
reduced the likelihood of sovereign support for EU commercial
banks in general.

Similarly, support from the bank's private shareholder, although
possible, cannot be reliably assessed.

CEBR'S IDRS, VR, SENIOR DEBT, NATIONAL RATING AND SUPPORT RATING

The affirmation of CEBR's Long-term IDR and VR reflects only
moderate pressure on the bank's capital to date, driven by a rise
in funding cost and high impairment charges, and Fitch's view
that despite a tight liquidity position, the bank's refinancing
risks should be manageable. Indirect liquidity support CEBR has
received from the parent bank in 2014-2015 is also credit-
positive. The Negative Outlook on the bank's IDR reflects Fitch's
view that CEBR's asset quality may deteriorate further, pressured
by sluggish economic growth, weaker consumption and investment,
and a drop of household real disposable income.

Asset quality deterioration has been only moderate to date, as
reflected in an annualized 8% non-performing loans origination
rate (defined as the increase in NPLs over the period plus write-
offs, divided by average performing loans) in 1H15; up from 7% in
2014. The bank's corporate loan book remains highly concentrated
(top 20 borrowers accounted for 1.7x of end-1H15 FCC) and is
significantly dollarized (around 80% of total), while most
borrowers have limited access to USD-denominated revenue.
However, collateral valuation in most cases is reasonable,
moderately mitigating credit risks. Also, CEBR is about to sell
all Turkey-related corporate exposures to other group entities
due to negative tensions against Turkey in Russia.

Russian retail borrowers have been burdened by the weaker
economic environment, leading to higher consumer indebtedness, by
a rise in inflation and unemployment rates, and a drop in real
disposable incomes. Credit losses in the retail loan book widened
to 10.8% in 1H15 (annualized) from 7.3% in 2014. However, secured
products (car loans and mortgages, 42% of total retail book at
end-1H15) have fairly high recovery rates and should reduce the
magnitude of losses. Nonetheless, medium-term performance will
largely depend on the broader state of the economy.

CEBR's refinancing risks are high in light of large potential
repayments in 2016 (RUB34 billion, including RUB18 billion of put
options, or 27% of liabilities at end-November 2015). Only 40% of
these redemptions are covered by liquid assets. Fitch believes
that CEBR may refinance at least some of this wholesale debt.
Furthermore, CEBR has some deleveraging capacity and may also
sell some corporate loans to other companies within the wider
group, which should help the bank to preserve liquidity. In
addition, a pre-committed credit line from the parent of EUR120m
is available in case of need, according to management.

The bank's capitalization is reasonable, although pressured by
negative net income in 1H15 and revaluation of FX-denominated
assets. Despite potentially weaker asset quality translating into
limited internal capital generation capacity, Fitch does not
expect the bank's capital ratios to decline significantly in 2016
due to limited planned loan growth.

CEBR's senior unsecured debt is rated in line with the bank's
Long-term IDR.

CEBR's Support Rating of '4' reflects the limited probability of
support from CEB, in case of need. This view is based on (i)
CEB's somewhat constrained ability to provide capital support,
given CEBR's large size (around 25% of group's assets at end-
2014); and (ii) increasing uncertainty over the longer-term
business prospects for the Russian market.

CEB'S AND CEBR'S SUBORDINATED DEBT

CEB's and CEBR's dated subordinated debt is rated one notch below
the banks' respective VRs, reflecting below-average recovery
prospects of this type of debt.

RATING SENSITIVITIES

CEB's IDRS, VR, SUPPORT RATING, SUPPORT RATING FLOOR AND
SUBORDINATED DEBT

Upside potential for CEB's Long-term IDR and VR is currently
limited although a stabilization of the Russian operating
environment would be credit-positive. Ratings could be downgraded
in case of further asset quality deterioration, which in Fitch's
view would be most likely to occur in the Russian portfolio,
leading to a material erosion of CEB's capitalization.

An upgrade of the Support Rating and upward revision of the
Support Rating Floor would be contingent on a positive change in
the Netherlands' propensity to support its banks. While not
impossible, this is highly unlikely in Fitch's view.

Subordinated debt rating is likely to move in tandem with CEB's
VR.

CEBR's IDRs, VR, NATIONAL RATING, SUPPORT RATING AND DEBT RATINGS

CEBR's Long-term IDR and VR could be downgraded if the weaker
operating environment translates into further deterioration of
the bank's asset quality and significant erosion of capital; or
prospects for Russia's economy and macroeconomic stability
continue to deteriorate significantly. Upside potential is
currently limited, but stabilization of the operating environment
would be credit-positive.

CEBR's Support Rating is sensitive to CEB's ratings (and hence,
its ability to provide support) and any marked changes in the
group's strategic commitment to the Russian market.

CEBR's senior and subordinated debt ratings are sensitive to
changes in the bank's Long-term IDR and VR respectively.


E-MAC DE RMBS: Fitch Affirms 'CCsf' Ratings on Class E Debt
-----------------------------------------------------------
Fitch Ratings has taken the following rating actions on the E-MAC
DE series:

E-MAC DE 2005-I B.V.:

Class A (ISIN XS0221900243): upgraded to 'AAAsf' from 'AAsf';
Stable Outlook
Class B (ISIN XS0221901050): upgraded to 'Asf' from 'BBBsf';
Stable Outlook
Class C (ISIN XS0221902538): affirmed at 'Bsf'; Stable Outlook
Class D (ISIN XS0221903429): affirmed at 'CCCsf'; Recovery
Estimate (RE) revised to 95% from 70%
Class E (ISIN XS0221904237): affirmed at 'CCsf'; RE of 0%
Class F (ISIN XS0221922056): paid in full

E-MAC DE 2006-I B.V.:
Class A (ISIN XS0257589860): affirmed at 'A+sf'; Outlook revised
to Positive from Stable
Class B (ISIN XS0257590876): affirmed at 'BBsf'; Stable Outlook
Class C (ISIN XS0257591338): affirmed at 'CCCsf' RE revised to
90% from 30%
Class D (ISIN XS0257592062): affirmed at 'CCsf'; RE of 0%
Class E (ISIN XS0257592575): affirmed at 'CCsf'; RE 0%
Class F (ISIN XS0257704717): paid in full

E-MAC DE 2006-II B.V.:
Class A1 (ISIN XS0276932539): paid in full
Class A2 (ISIN XS0276933347): affirmed at 'A+sf'; Outlook revised
to Positive from Stable
Class B (ISIN XS0276933859): affirmed at 'BBB-sf'; Stable Outlook
Class C (ISIN XS0276934667): affirmed at 'Bsf'; Stable Outlook
Class D (ISIN XS0276935045): affirmed at 'CCCsf'; RE revised to
65% from 50%
Class E (ISIN XS0276936019): affirmed at 'CCsf'; RE 0%
Class F (ISIN XS0276936951): paid in full

The transactions are true-sale securitizations of German
residential mortgage loans originated by GMAC-RFC Bank GmbH,
which was renamed Paratus AMC GmbH in 2011 and subsequently
renamed to Adaxio DE GmbH in 2015.

KEY RATING DRIVERS

E-MAC DE 2005-1 has seen significant principal repayments in the
past year. This is due to 59% of the outstanding loans having had
interest rate resets in 2015. This enables borrowers to refinance
their loans without any penalty with other banks at more
attractive mortgage rates. As a result, credit enhancement (CE)
has increased significantly for the class A notes to 54.2% from
23.8% and for the class B notes to 29.2% from 14.3%. As a result,
the class A and B notes can withstand greater losses, which has
led to their upgrade.

The current rating of the swap counterparty (Deutsche Bank, A-
/Stable/F1) is not eligible to support a 'AAAsf' note rating,
following its downgrade on December 8, 2015. However, Fitch has
received a confirmation from servicer CMIS Investments B.V. that
remedial actions in line with its criteria will be implemented
and will monitor their progress.

Fitch expects high principal repayments for E-MAC DE 2006-1 and
2006-2 deals, as large portions of their portfolios are due for
interest rate reset in the coming year. Consequently, CE on the
senior notes will increase, resulting in the revision of Outlook
to Positive for the class A notes.

Fitch believes the credit support levels available to the other
notes of the E-MAC DE series notes are sufficient to withstand
the respective rating stresses and has therefore affirmed their
ratings with Stable Outlooks.

However, underlying loan losses exceeding the available excess
spread have increased principal deficiency ledger (PDL) levels
for the junior notes. As of end-August 2015, in the 2005-1 deal,
the PDL of the class E notes was debited at 15% of the notes'
balance. In the 2006-1 deal, the class E notes' PDL was fully
debited; the class D PDL was debited at 63% of the notes'
balance. In the 2006-2 deal, the class E PDL was fully debited
and the class D PDL stood at 2% of the notes' balance.
Furthermore, the reserve funds for all three deals were fully
depleted.

RATING SENSITIVITIES

Prepayment rates lower than expected by Fitch may negatively
influence the credit protection of the notes. A corresponding
increase in new defaults and associated pressure on excess spread
levels could result in negative rating action on the junior
notes.

Fitch assigns REs to all notes rated 'CCCsf' or below. REs are
forward-looking, taking into account Fitch's expectations for
principal repayments on a distressed structured finance security.

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.



===============
P O R T U G A L
===============


BANCO INTERNACIONAL: Ability to Pay Bailout Under Scrutiny
----------------------------------------------------------
Raphael Minder at The New York Times reports that Portugal faces
fresh concerns relating to one of its smaller banks after shares
in Banco Internacional do Funchal (Banif) tumbled on Dec. 14 amid
concerns about its ability to pay back loans it received in a
bailout of the country's banking sector.

Banif was one of the smaller banks to receive emergency lending
as part of the international bailout of EUR78 billion, or US$85.7
billion, that Portugal negotiated in 2011, The New York Times
discloses.

Banif's ability to repay its share of the bailout has been under
particular scrutiny since July, when the European Commission, the
competition authority of the European Union, announced that it
was investigating whether the subsequent restructuring of Banif
included what amounted to illegal state subsidies, The New York
Times notes.

Banif could now be subjected to a restructuring similar to Banco
EspĀ°rito Santo, with its toxic assets split off from the rest of
the bank, The New York Times says, citing some Portuguese news
reports.

Banif issued a statement on Dec. 14 in which it denied reports
that the government was struggling to prevent the bank's
collapse, The New York Times relays.  Instead, Banif, as cited by
The New York Times, said, the government plans to sell its 60%
stake in the bank to a strategic investor.

Banif reported a net loss of EUR295 million last year, following
a loss of EUR470 million in 2013, The New York Times relates.
The government injected EUR1.1 billion of fresh capital into
Banif in 2013 to help the bank meet minimum capital requirements,
The New York Times recounts.

Headquartered in Funchal, Portugal, Banco Internacional do
Funchal, S.A. (Banif) provides banking and financial products and
services. It offers retail banking, commercial banking and asset
management services.




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


AUTOBANN: Moody's Assigns B1 Rating to RUB3BB Sr. Unsec. Bonds
--------------------------------------------------------------
Moody's Investors Service has assigned a B1 rating (with a loss-
given default assessment of LGD4) to the RUB3 billion
(approximately $43 million) of senior unsecured rouble-
denominated bonds due in 2020 to be issued by the Russian road
construction company Autobann (LLC SOYUZDORSTROY) via its
indirect subsidiary Avtoban-Finance, JSC.  The outlook is stable.

Avtoban-Finance will issue the bonds for the sole purpose of
financing loans to Autobann's key operating companies - OAO DSK
Autobann and OAO KhMDS, and will rely on these two main operating
subsidiaries of the group to service the bonds.

Concurrently, Moody's has affirmed Autobann's B1 corporate family
(CFR) and B1-PD probability of default (PDR) ratings with a
stable outlook, as while the company's leverage will increase
post-issuance it will remain within levels commensurate for the
current rating.

RATINGS RATIONALE

The assignment of a B1 rating to Autobann's rouble-denominated
bonds -- at the level of the company's CFR -- reflects the surety
provided by DSK Autobann, as well as support from the holding
company, Soyuzdorstroy, and OAO KhMDS, who will provide an
irrevocable offer to acquire the bonds in the case of a breach of
payment obligations by Avtoban-Finance to prevent the bond
default.

Moody's decision to affirm Autobann's B1 ratings reflects the
rating agency's expectations that, following the issuance of the
bonds, which should cost-efficiently replace some of the more
expensive short-term working capital financings, the company's
leverage measured by debt/EBITDA will increase, but will remain
at around 2.0x, and below 1.0x, or negative, on a net-debt basis.

The B1 CFR reflects the company's (1) sectoral, geographic and
customer concentration relative to global peers, with reliance
upon a single industry segment -- road construction -- and the
majority of contracts being with the Russian government; (2)
competitive market landscape; (3) weakening macroeconomic
environment in Russia; (4) exposure to accelerated cost inflation
in Russia; (5) in-year liquidity volatility, with costs incurred
throughout the year but contract receipts clustered towards the
end of each year; and (6) single shareholder corporate structure,
which potentially presents corporate governance risks.

More positively, the rating takes into account Autobann's (1)
moderate risk business model whereby most projects relate to
construction of important federal roads and are performed against
contracts with the state bodies; (2) modest exposure to complex
multi-year works such as junctions and bridges; (3) track record
of successful project completion; (4) strong liquidity profile,
supported by positive free cash flow generation; and (5)
conservative financial policies and historically strong leverage
metrics with most of debt related to short-term working capital
financing fully repaid by the end of each year.

Notwithstanding a material reduction in the state-funded
construction volumes initiated by the government at the beginning
of 2015, Autobann increased its 2015 revenue by approximately
5.6% year-on-year.  The company maintains a healthy order backlog
that should provide for revenue generation in excess of RUB30
billion a year in 2016-2017.  The company was able to defend its
11%-12% EBITDA margin through efficient cost control and prudent
project management.

STRUCTURAL CONSIDERATIONS

The surety is in a form that should give bondholders the ability
to make a guarantee claim on DSK Autobann for repayment of the
bonds if Avtoban-Finance defaults.  However, under Russian
suretyship law DSK Autobann has certain rights to raise defenses
to bondholder claims and therefore to avoid or reduce its
liability.  The rating agency would ordinarily expect to see
bondholders protected from this exposure, typically through an
effective express waiver of these rights in the agreement itself.
However, Moody's understand any such waiver would not be
enforceable under Russian law.

While the rating agency recognizes that the surety is arguably as
strong a guarantee as can be given by a non-financial corporate
in Russia, this potential bondholder exposure is something
Moody's considers to be inconsistent with the equalization of the
rating of Avtoban-Finance's bonds with the rating of Autobann
based solely on the strength of the surety.

The irrevocable offers provided by Soyuzdorstroy and KhMDS
entitle bondholders to require both entities to enter into a
purchase agreement for their bonds if certain events occur, such
as payment default by Avtoban-Finance or its insolvency.  In
substance, the offer appears to be similar to a put option.
There are some uncertainties surrounding the enforceability of
put options under Russian law although there is some evidence to
suggest that the Russian legal system will uphold irrevocable
offers.  Bondholders' claims under the irrevocable offer are in
any event subject to relatively tight timescales and formal
notice requirements, which could expose bondholders to a risk
that their rights under the offer may lapse whilst a potential
default remains outstanding under the bonds if they do not act
quickly and accurately.

However, the assessment also positively considers that the credit
support providers' (DSK Autobann, Soyuzdorstroy and KhMDS) self-
interest in maintaining the creditworthiness and business
viability of Avtoban-Finance is quite substantial.  While this
interest does not fully mitigate potential legal deficiencies in
the surety and irrevocable offers, it is sufficient for the bonds
to be aligned with and uplifted to Autobann's rating at the B1
level.

The factors considered were (1) the degree to which the
operations of the companies are interwoven; (2) the degree of
business and financial disruption that would result for Autobann
or its corporate family if payments by Avtoban-Finance are not
made on time; and (3) the extent to which the support package,
while generally deficient in some respects, still represents a
relatively strong commitment within the current limitations of
Russian Law.

While the bond's rating is currently uplifted to Autobann's B1
rating, a rating distinction might be introduced at higher rating
levels to reflect the fact that the terms of the support package
do not fully achieve the standards normally expected to align the
rating with that of the support provider based on the legal
documents alone.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook on Autobann's B1 CFR reflects Moody's
expectation that the company will maintain stable construction
volumes, and that its business model will remain resilient to
cost inflation risks.  The outlook assumes that the company's
leverage measured by debt/EBITDA will sustainably remain below
2.0x, and coverage measured by EBITA/interest above 3.0x.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Given the company's current scale of operations and limited
diversification, an upgrade in the medium term is unlikely.  A
continuing track record of strong financial performance and
conservative financial policies, and maintenance of good
visibility over future cash flows alongside conservative
liquidity management would have a positive effect on the ratings.

Autobann's rating could come under downward pressure if the
company were to face material deterioration in its business and
financial profile, with leverage measured by reported debt/EBITDA
increasing above 2.0x, and EBITA/interest falling below 3.0x.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Construction
Industry published in November 2014.

Headquartered in Moscow, Russia, Autobann (LLC Soyuzdorstroy) is
the second-largest Russian infrastructure construction company in
terms of contracts portfolio, specialising in road construction.
The company participates in the large-scale federal road
construction projects and regional projects in Urals, West
Siberia, Central and South Russia.  In 2014, Autobann reported
RUB24.9 billion in revenue and RUB3.3 billion in EBITDA.


KOKS OAO: S&P Revises Outlook to Negative & Affirms 'B' CCR
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook, to negative from stable, on Russia-based vertically
integrated coking coal, coke, iron ore, and pig iron producer OAO
Koks.  At the same time, S&P affirmed the 'B' long-term corporate
rating.

S&P also affirmed the 'B-' issue rating on the $199 million
senior unsecured loan participation notes due 2016.  The recovery
rating is unchanged at '5', reflecting S&P's expectation of
recovery in the lower half of the 10%-30% range.

The outlook revision reflects S&P's view of the risk that Koks'
liquidity position may weaken materially in 2016, when the
Eurobond is due.  Nevertheless, S&P notes the company's proactive
work on refinancing: Koks has already rolled over some maturing
short-term debt, supporting its ability to address the liquidity
issues.  S&P also considers the effect on Koks' performance from
the weak steel industry, a key market for Koks, with depressed
prices potentially weighing on margins in the future.

Koks demonstrated healthy performance in the first half of 2015,
maintaining high margins, helped by the weak ruble.  At the same
time, the weak ruble has increased the company's foreign currency
debt and relative interest payments considerably, putting
pressure on its cash flow generation.  This has been offset,
however, by Koks' internal development strategy and material
reduction of capital expenditure (capex), although all scheduled
activities on key investment projects will continue.  This
supports S&P's assessment of Koks' financial risk profile as
aggressive.

S&P continues to view Koks' business risk profile as weak,
constrained by moderately high industry risk and high operating
risk in Russia, where all its assets are located.  On the
positive side, S&P notes the company's substantial resource base,
sufficient for decades of operations; and high degree of self-
sufficiency in its key inputs, coking coal and iron ore.
However, S&P considers Koks' profitability to be highly volatile
because both coke and pig iron -- its two key products -- are
exposed to the very cyclical steel industry.

S&P sees a risk that Koks' leverage might increase beyond S&P's
base-case projection as a result of its involvement in the Tula
steel project.  Although S&P understands that Koks has sold its
stake in the project, it has provided the project with
significant long-term funding.  S&P do not currently forecast
additional investments by Koks in the project, but it cannot rule
it out.  S&P therefore applies a negative financial policy
modifier, leading to a stand-alone credit profile assessment of
'b', one notch lower than the anchor.

The negative outlook reflects the risk of potential liquidity
pressure in 2016, when peak debt maturities are expected, amid
tough industry and market conditions.

S&P could downgrade Koks if its liquidity position does not
improve in the coming month.  A downgrade might also follow if
Koks' credit metrics weaken, with FFO to debt below 20% for a
long period.  This could result, for instance, from higher capex
or dividends in 2016 than forecast in S&P's base case, or from
weaker operating and financial performance.

S&P may revise the outlook to stable if the company proactively
addresses its refinancing needs and maintains operating and
financial results in line with or better than S&P's base-case
scenario.  This could result from stabilization of market
conditions and the company's ability to maintain operating
margins at the current levels.


KRASNODAR REGION: Fitch Assigns 'BB' Issuer Default Ratings
------------------------------------------------------------
Fitch Ratings has assigned the Russian Krasnodar Region Long-term
foreign and local currency Issuer Default Ratings (IDRs) of 'BB'
and a Short-term foreign currency IDR of 'B'. The agency has also
assigned the region National Long-term rating at 'AA-(rus)'. The
Outlooks on the Long-term ratings are Stable.

The agency has also assigned the region's senior unsecured debt a
Long-term local currency rating of 'BB' and a National Long-term
rating of 'AA-(rus)'.

KEY RATING DRIVERS

The 'BB' rating reflects high net overall risk resulting from
extensive infrastructure investment in the past that is partly
mitigated by large expos ure to long-term budget loans. The
rating also considers Fitch's projection of a sustainably
positive current balance for the region, stabilization of net
overall risk over the medium term and a well-diversified economy.

Weak Institutional Framework

Russia's institutional framework for local and regional
governments (LRGs) has a shorter record of stable development
than many of its international peers. The region's credit profile
is therefore constrained by the evolving nature of the framework.
The predictability of Russian LRGs' budgetary policy is hampered
by frequent reallocation of revenue and expenditure
responsibilities between the tiers of government.

High Net Overall Risk

Fitch projects net overall risk to remain high at about 85%
(2014: 81%) of current revenue in 2015-2017. Krasnodar incurred
significant Olympics-related capex that was not sufficiently
compensated by transfers from the federal government. The large
amount of capex was financed by long-term subsidized budget loans
and debt contracted by NPJSC Centre Omega that was partly
guaranteed by Krasnodar region. This led overall risk to almost
double and reaches RUB150 billion at end-2014 from RUB78 billion
at end-2012.

At end-November 2015, direct risk amounted to RUB129.5 billion
and 41% of that was budget loans linked to the Olympics
financing. They bear 0.1% interest rate and mature in 2023-2034,
which reduces annual debt service and ease refinancing pressure
on the budget. The bulk of remaining direct risk is due between
2016 and 2019 when the region has to repay RUB73 billion. Fitch
expects the region to refinance part of maturing debt with budget
loans and to a larger extent with local banks' loans, as is
common practice for most Russian sub-nationals.

Fiscal Performance to Improve

Fitch projects the region's budgetary performance will moderately
improve in 2015-2017 following the weak performance in 2013-2014.
Fitch forecasts the operating balance to grow to 5%-7% of
operating revenue from 2%-3% in 2013-2014 supported by modest
growth of tax revenue and cost cutting measures implemented by
the region's administration.

"We do not expect operating balance to restore to its sound 10%-
15% in 2011-2012 in the context of challenging macroeconomic
environment. Maintenance costs for the Olympics infrastructure
and new mandates transferred to the region in 2012-2014 will
continue to add pressure to the budget."

Fitch forecasts the deficit before debt variation to narrow to
3%-6% of total revenue in 2015-2017 from high 12% in 2014 and 28%
in 2013 following the completion of infrastructure projects
related to the Olympic Games. Fitch projects capital expenditure
to shrink below 10% of total expenditure from high 30%-40% in
2011-2013.

Material Contingent Risk

The region administers an extensive network of public sector
entities (PSEs) that includes about 40 public unitary enterprises
and about 100 majority-owned shareholdings. The PSEs' debt
amounted to material RUB26 billion, RUB12 billion of which is
guaranteed by the region. The guarantee relates to the debt of
the Olympics developer NPJSC Centre Omega, 100% owned by
Krasnodar region. The region's administration aims to reduce risk
stemming from PSEs and plans to fund Omega's debt repayment by
selling Olympics property.

Diversified Economy

Krasnodar region's economy is well-diversified, providing a broad
tax base. Krasnodar is among the top five Russian regions by
gross regional product (GRP) and population, and its GRP per
capita is 14% above the national median (2013). Krasnodar's
administration estimates the GRP to narrow 1.7% in 2015 following
the negative national trend and to moderately grow 1%-3% in 2016-
2017.

RATING SENSITIVITIES

A strong operating balance at about 10% of operating revenue on a
sustained basis accompanied by reduction of net overall risk
towards 60% of current revenue (2014: 81%) could lead to positive
rating action.

Consistently weak operating balance insufficient to cover
interest expense or inability to maintain the net overall risk to
current revenue below 100% would lead to negative rating action.



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


AMDIPHARM MERCURY: S&P Withdraws 'B+' CCR After Debt Repayment
--------------------------------------------------------------
Standard & Poor's Ratings Services said it withdrew its 'B+'
corporate credit rating on U.K.-based pharmaceutical company
Amdipharm Mercury Debtco Ltd.  S&P also withdrew the 'B+' issue
rating and '3' recovery rating on Amdipharm's senior secured
debt, which has been repaid.  The ratings on Amdipharm were on
CreditWatch with negative implications at the time of the
withdrawal.

S&P has withdrawn the ratings on Amdipharm at the issuer's
request following the completion of its acquisition by Concordia
Healthcare Corp. (B/Positive/--), as part of which all of
Amdipharm's debt facilities have been repaid.

The negative CreditWatch placement on Amdipharm reflected S&P's
expectation that, following the acquisition, it would align the
rating on Amdipharm with the lower rating on its new parent.
S&P's 'B' corporate credit rating on Concordia is not affected by
the acquisition.


AQUAMARINE POWER: Administrators Seek Buyers for IP Assets
----------------------------------------------------------
Gareth Mackie at The Scotsman reports that administrators for
Aquamarine Power are seeking buyers for the company's
intellectual property (IP).

The company ceased trading last month after joint administrators
from BDO failed to secure a sale of the business, which employed
14 people, The Scotsman recounts.

BDO has now called in Glasgow-based intellectual property firm
Metis Partners to handle the sale of Aquamarine's IP assets,
including the technology behind its patent-protected Oyster
device, which captures energy from waves and converts it into
electricity, relates.

According to The Scotsman, Metis said Aquamarine spent more than
GBP90 million on the development of its system.  It has set a
deadline of noon on Jan. 21 for offers, The Scotsman discloses.

Aquamarine Power is a wave energy firm.


BRIDON GROUP: Moody's Review Ca-PD PDR with Direction Uncertain
---------------------------------------------------------------
Moody's Investors Service placed under review, with direction
uncertain, the Caa1 Corporate Family Rating (CFR) of Bridge
HoldCo 4 Ltd, the ultimate holding company for the Bridon Group
(Bridon). Moody's has also placed under review the B3 ratings on
the $286 million senior secured first lien term loan and the $40
million senior secured revolving credit facility of Bridge Finco
LLC.  Moody's has downgraded to Ca, from Caa3, the rating on the
$111 million senior secured second lien term loan of Bridge Finco
LLC and placed this rating under review with direction uncertain.
Finally, Moody's has downgraded the Probability of Default Rating
(PDR) of Bridon to Ca-PD from Caa1-PD and placed the PDR under
review with direction uncertain.  The action on the PDR and the
downgrade of the second lien term loan reflects the agency's view
that Bridon will undertake, with high probability, a debt
restructuring that could result in a loss for some creditors.
Moody's would consider this expected transaction as a distressed
exchange, and therefore an event of default under its criteria
for assessing defaults.

RATINGS RATIONALE

"The rating review reflects persistent weakness in Bridon's
operating performance, driven primarily by a lack of demand for
ropes from the oil & gas industry," says Scott Phillips, a
Moody's Vice President -- Senior Analyst and lead analyst for
Bridon. "Nevertheless, the potential for a merger with assets
owned by Bekaert, when combined with a debt restructuring, is
likely positive for Bridon's future credit profile" added
Mr. Phillips.

On Nov. 7, Bridon and Bekaert (unrated) announced the terms of a
merger which envisages the creation of a leading manufacturer of
high quality wires and ropes for a variety of different
industries.  In particular, Bekaert will take a two-thirds
ownership stake in the merged entity, contributing a group of
assets that collectively generated around EUR 250 million of
sales in 2014.  Similarly, Bridon's shareholder -- Ontario
Teachers' Pension Plan (OTPP) will take a one-third stake in the
new company, contributing the assets and liabilities of Bridon.
The combination will create a materially larger company with a
higher level of business and geographic diversification.
Furthermore, Moody's estimates that pro-forma leverage of the
combined entity will be lower than is currently the case for
Bridon.  While Moody's believes that the transaction, if
successfully executed, would create an entity with a superior
credit quality to Bridon, the agency notes that the merger is
contingent upon the receipt of regulatory approvals but also
notably, the completion of Bridon's debt restructuring.  The
review will therefore focus on: (1) the likelihood of
successfully executing the planned transaction, and (2) the
financial and business profile of the new entity, most notably
its leverage, profitability and liquidity.

In addition to the merger terms, Bridon and Bekaert separately
announced, that the amount of debt to be raised by the combined
group will be lower than exists within Bridon's current capital
structure.  Moody's anticipates that this will be achieved via a
restructuring of Bridon's debt that will result in a loss of
value for some existing creditors.  Moody's believes that a
restructuring would constitute an event of default by distressed
exchange given Bridon's existing high leverage.  The agency
believes that the transaction could result in a loss for some
creditors and, furthermore, helps the company to avoid a
potential bankruptcy or payment default in the future.  Moody's
understands that a debt restructuring will take in place in
conjunction with the completion of the merger and thus is highly
likely to occur. In addition to the factors mentioned above,
therefore, the review process will also take into consideration:
(1) the likelihood of a debt restructuring being completed; and
(2) the recovery prospects for all of Bridon's existing
creditors.

STRUCTURAL CONSIDERATIONS

While the rating on the 1st lien senior secured bank facilities
is currently unchanged at B3, the agency has lowered by one notch
the rating on the 2nd lien senior secured bank facilities to Ca,
from Caa3.  This reflects Moody's view that the largest creditor
loss pertaining to the debt restructuring will be felt by the 2nd
lien investors and at a higher level than implied in the previous
Caa3 rating.

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

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


ROYAL BANK: Moody's Affirms Ba1 Senior Unsecured Debt Rating
------------------------------------------------------------
Moody's Investors Service has affirmed The Royal Bank of Scotland
plc's (RBS) A3 supported long-term deposit and senior unsecured
debt ratings, following the affirmation of the bank's ba1
standalone baseline credit assessment (BCA).  The long-term
senior unsecured debt rating of the holding company, The Royal
Bank of Scotland Group plc (RBSG), was affirmed at Ba1.  The
ratings outlook of both RBS and RBSG was changed to positive from
stable. Moreover, Moody's has affirmed RBS's short-term rating of
Prime-2 and RBSG's short-term rating of Non-Prime.

The positive outlook reflects the substantial progress the firm
has made in its restructuring plan and Moody's expectation that
its credit fundamentals will continue to improve over the next
12-18 months.  The ratings affirmation reflects Moody's view that
RBS's standalone credit profile currently remains constrained by
(1) the challenges the group continues to face in implementing
its complex multi-year restructuring despite material improvement
achieved thus far, (2) weak profitability, (3) still large global
capital markets business, and (4) high - albeit reducing - asset
risk.  These factors, which are only partly mitigated by (1)
strong retail and commercial banking earnings -- currently being
eroded by large conduct, litigation and restructuring costs --
(2) the group's strong track record in restructuring, (3) good
and improving capitalization, and (4) sound liquidity and funding
positions, led to the affirmation of the ba1 BCA.

"RBS has made substantial progress in the implementation of its
multi-year restructuring plan, which has resulted in stronger
regulatory capitalization, lower asset risk and improved funding
and liquidity", said Andrea Usai, a Moody's Vice President --
Senior Credit Officer.  "However, there are still significant
downside risks in the short to medium term that could arise
either from the implementation of the plan or from other sources,
such as further litigation and conduct costs, which together with
large budgeted restructuring charges, will continue to depress
profits", Usai added.

RATINGS RATIONALE

POSITIVE OUTLOOK REFLECTS RBS's IMPROVING STANDALONE CREDIT
STRENGTH FROM PROGRESS ON RESTRUCTURING

The positive outlook reflects Moody's expectations that RBS's
management will continue to progress the restructuring of the
bank, benefitting its credit fundamentals, and that the
correspondent reduction in downside risks will improve the firm's
standalone credit profile.

RBS has continued to advance the complex restructuring of its
operations, which comprises a number of initiatives that will
eventually change its business mix, reduce its risk profile, and
improve operational efficiency levels.  Moody's believes that a
successful execution of the plan will make RBS a more efficient
UK-focused bank with less high-risk operations, which would
result in a much stronger credit profile over the next 3-5 years.
However, the business remains vulnerable to shocks in the short
to medium term, and profitability will continue to remain subdued
until the restructuring is further progressed.

The firm has successfully completed some of its planned
initiatives, such as the full disposal of its US subsidiary
Citizens (Citizens Bank, N.A., LT deposits A1 stable, LT senior
unsecured Baa1 stable, BCA a3; and Citizens Bank of Pennsylvania,
LT deposits A1 stable, BCA a3) and has largely achieved the
accelerated wind down of its legacy portfolio -- RBS Capital
Resolution (RCR).  However, it is still in the process of
implementing a comprehensive restructuring program of its core
operations, consisting of: (1) Consolidation of core operations
into three main divisions and centralization of support
functions; (2) a very large downsizing of the Corporate &
Institutional Banking (CIB) business; and (3) a substantial
reduction of its cost base.

BCA AFFIRMATION REFLECTS RISKS FROM ONGOING RESTRUCTURING DESPITE
PROGRESS TO DATE

Moody's considers that significant headwinds could materialize in
the short to medium term, challenging the execution of the
overall complex group restructuring, such as the crystallization
of unexpected conduct and litigation costs and high-profile
pending investigations.  This risk is particularly significant
for RBS, given that: (1) The execution of the restructuring will
heavily weigh on the group's profits, impairing the firm's
ability to generate capital internally; and (2) RBS's ability to
raise additional equity capital from external sources is
constrained by its quasi-ownership by the UK government (Aa1
stable) and its lack of willingness to inject further capital
into the bank.  Moody's considers that RBS has a good capital
buffer that will continue to build-up as a result of its de-
risking and the deconsolidation of Citizens.

The rating agency believes that RBS's operations will not fully
stabilize until this plan is largely delivered.  The
implementation of these initiatives implies that the associated
large credit and disposal costs, and remaining sizeable
restructuring charges estimated be around GBP2.7 billion over the
period of the plan, will continue to depress profitability over
the next several quarters.

WHAT COULD MOVE THE RATINGS UP/DOWN

RBS's ba1 BCA could be upgraded if the bank were to return to
sustainable profitability and generate capital organically.  A
key component of this would be a further reduction in the
uncertainty driven by the group's ongoing restructuring and high-
profile pending litigations.  A positive change in the bank's BCA
would likely affect all ratings.

RBS's ba1 BCA could be downgraded if the bank's restructuring and
de-risking strategy fails to deliver improvements in its credit
fundamentals, weakening its capital, asset risk, profitability
and operational efficiency levels.  A deterioration in the
operating environment and/or regulatory and litigation charges
substantially higher than what Moody's expects, could also result
in a reduction of the BCA.  A lower BCA would likely result in
downgrades of all ratings.

RBS's senior unsecured debt and deposit ratings currently receive
the maximum uplift of three notches under Moody's Advanced Loss
Given Failure (LGF) analysis.  Moody's Advanced LGF analysis
indicates that a relatively small reduction in the amount of
RBS's senior unsecured debt would lead to a lower uplift for
RBS's senior unsecured creditors, other factors being equal.
This scenario could also develop if holding company senior
unsecured debt or junior instruments were to decrease by a
similar amount. Moody's expectation is that a corresponding
reduction in the group's Tangible Banking Assets from the ongoing
deleveraging will offset this negative pressure; however, RBS's
A3 senior unsecured debt rating could be downgraded, should the
anticipated balance sheet reduction not occur.

LIST OF AFFECTED RATINGS

Affirmations:

Issuer: The Royal Bank of Scotland Group plc

  Senior Unsecured Regular Bond/Debenture (Foreign Currency),
   Affirmed Ba1 positive
  Junior Subordinated Regular Bond/Debenture (Foreign Currency),
   Affirmed Ba3 (hyb)
  Other Short Term (Foreign Currency and Local Currency),
   Affirmed (P)NP
  Junior Subordinate MTN (Foreign Currency and Local Currency),
   Affirmed (P)Ba3
  Subordinate MTN (Foreign Currency and Local Currency), Affirmed
   (P)Ba2
  Senior Unsecured MTN (Foreign Currency and Local Currency),
   Affirmed (P)Ba1
  Preference Shelf (Foreign Currency), Affirmed (P)B1
  Preference Shelf (Foreign Currency), Affirmed (P)Ba3
  Subordinate Shelf (Foreign Currency), Affirmed (P)Ba2
  Subordinate Shelf (Foreign Currency), Affirmed (P)Ba3
  Junior Subord. Shelf (Foreign Currency), Affirmed (P)Ba3
  Pref. Stock (Foreign Currency), Affirmed Ba3 (hyb)
  Pref. Stock Non-cumulative (Foreign Currency and Local
   Currency), Affirmed B1 (hyb)
  Subordinate Regular Bond/Debenture (Foreign Currency), Affirmed
   Ba2
  Subordinate Regular Bond/Debenture (Foreign Currency), Affirmed
   Ba3
  Commercial Paper (Foreign Currency and Local Currency),
   Affirmed NP

Issuer: The Royal Bank of Scotland plc

  LT Bank Deposits (Foreign Currency and Local Currency),
   Affirmed A3 positive
  ST Bank Deposits (Foreign Currency and Local Currency),
   Affirmed P-2
  Senior Unsecured Regular Bond/Debenture (Foreign Currency and
   Local Currency), Affirmed A3 positive
  BACKED Senior Unsecured Regular Bond/Debenture (Foreign
   Currency), Affirmed A3 positive
  Commercial Paper (Foreign Currency), Affirmed P-2
  Junior Subordinated Regular Bond/Debenture (Foreign Currency
   and Local Currency), Affirmed Ba3 (hyb)
  BACKED Junior Subordinated Regular Bond/Debenture (Local
   Currency), Affirmed Ba3 (hyb)
  BACKED Senior Unsecured MTN (Foreign Currency), Affirmed (P)A3
  Senior Unsecured MTN (Foreign Currency and Local Currency),
   Affirmed (P)A3
  BACKED Junior Subordinate MTN (Foreign Currency), Affirmed
   (P)Ba3
  BACKED Subordinate MTN (Foreign Currency), Affirmed (P)Ba2
  BACKED Other Short Term (Foreign Currency), Affirmed (P)P-2
  Junior Subordinate MTN (Local Currency), Affirmed (P)Ba3
  Subordinate MTN (Local Currency), Affirmed (P)Ba2
  Other Short Term (Foreign Currency and Local Currency),
   Affirmed (P)P-2
  Subordinate Regular Bond/Debenture (Foreign Currency), Affirmed
   Ba3
  Subordinate Regular Bond/Debenture (Foreign Currency), Affirmed
   Ba2
  ST Deposit Note/CD Program (Foreign Currency), Affirmed P-2
  BACKED Commercial Paper (Foreign Currency), Affirmed P-2
  Adjusted Baseline Credit Assessment, Affirmed ba1
  Baseline Credit Assessment, Affirmed ba1
  Counterparty Risk Assessment, Affirmed A3(cr)
  Counterparty Risk Assessment, Affirmed P-2(cr)

Issuer: National Westminster Bank PLC

  LT Issuer Rating, Affirmed A3 positive
  LT Bank Deposits (Foreign Currency and Local Currency),
   Affirmed A3 positive
  ST Bank Deposits (Foreign Currency and Local Currency),
   Affirmed P-2
  Junior Subordinated Regular Bond/Debenture (Foreign Currency
   and Local Currency), Affirmed Ba3 (hyb)
  Senior Unsec. Shelf (Foreign Currency), Affirmed (P)A3
  Preference Shelf (Foreign Currency), Affirmed (P)Ba3
  Subordinate Shelf (Foreign Currency), Affirmed (P)Ba2
  Pref. Stock Non-cumulative (Foreign Currency and Local
   Currency), Affirmed B1 (hyb)
  Subordinate Regular Bond/Debenture (Local Currency), Affirmed
   Ba2
  Adjusted Baseline Credit Assessment, Affirmed ba1
  Baseline Credit Assessment, Affirmed ba1
  Counterparty Risk Assessment, Affirmed A3(cr)
  Counterparty Risk Assessment, Affirmed P-2(cr)

Issuer: Royal Bank of Scotland N.V.

  LT Issuer Rating, Affirmed A3 positive
  LT Bank Deposits (Foreign Currency and Local Currency),
   Affirmed A3 positive
  ST Bank Deposits (Foreign Currency and Local Currency),
   Affirmed P-2
  Senior Unsecured Regular Bond/Debenture (Foreign Currency and
   Local Currency), Affirmed A3 positive
  BACKED Senior Unsecured (Foreign Currency), Affirmed A3
   positive
  Senior Unsecured MTN (Foreign Currency and Local Currency),
   Affirmed (P)A3
  BACKED Senior Unsecured MTN (Foreign Currency), Affirmed (P)A3
  Junior Subordinate MTN (Local Currency), Affirmed (P)Ba3
  Subordinate MTN (Local Currency), Affirmed (P)Ba2
  Other Short Term (Foreign Currency and Local Currency),
   Affirmed (P)P-2
   Subordinate Regular Bond/Debenture (Foreign Currency and Local
   Currency), Affirmed Ba2
  ST Deposit Note/CD Program (Local Currency), Affirmed P-2
  Commercial Paper (Foreign Currency), Affirmed P-2
  Adjusted Baseline Credit Assessment, Affirmed ba1
  Baseline Credit Assessment, Affirmed ba1
  Counterparty Risk Assessment, Affirmed A3(cr)
  Counterparty Risk Assessment, Affirmed P-2(cr)

Issuer: Royal Bank of Scotland N.V. South Africa Br.

  NSR ST Bank Deposits (Local Currency), Affirmed P-1.za
  NSR LT Bank Deposits (Local Currency), Affirmed Aa3.za

Issuer: Royal Bank of Scotland N.V., Australian

  Commercial Paper (Local Currency), Affirmed P-2
  Counterparty Risk Assessment, Affirmed A3(cr)
  Counterparty Risk Assessment, Affirmed P-2(cr)

Issuer: Royal Bank of Scotland N.V., Chicago Branch

  LT Bank Deposits (Local Currency), Affirmed A3 positive
  Counterparty Risk Assessment, Affirmed A3(cr)
  Counterparty Risk Assessment, Affirmed P-2(cr)

Issuer: Royal Bank of Scotland N.V., London Branch

  Senior Unsecured (Foreign Currency) Mar 20, 2017, Affirmed A3
   positive
  Counterparty Risk Assessment, Affirmed A3(cr)
  Counterparty Risk Assessment, Affirmed P-2(cr)

Issuer: Royal Bank of Scotland N.V., New York Branch

  Subordinate (Local Currency), Affirmed Ba2
  LT Deposit Note/CD Program (Local Currency), Affirmed (P)A3
  Subordinate Deposit Note Program (Local Currency), Affirmed
   (P)Ba2
  Counterparty Risk Assessment, Affirmed A3(cr)
  Counterparty Risk Assessment, Affirmed P-2(cr)

Issuer: Royal Bank of Scotland N.V., Paris Branch

  LT Bank Deposits (Foreign Currency and Local Currency),
   Affirmed A3 positive
  ST Bank Deposits (Foreign Currency and Local Currency),
   Affirmed P-2
  Counterparty Risk Assessment, Affirmed A3(cr)
  Counterparty Risk Assessment, Affirmed P-2(cr)

Issuer: Royal Bank of Scotland plc, Australia Branch

  Senior Unsecured MTN (Foreign Currency), Affirmed (P)A3
  Other Short Term (Foreign Currency), Affirmed (P)P-2
  Counterparty Risk Assessment, Affirmed A3(cr)
  Counterparty Risk Assessment, Affirmed P-2(cr)

Issuer: Royal Bank Of Scotland plc, Connecticut

  LT Bank Deposits (Foreign Currency and Local Currency),
   Affirmed A3 positive
  ST Bank Deposits (Foreign Currency and Local Currency),
   Affirmed P-2
  Counterparty Risk Assessment, Affirmed A3(cr)
  Counterparty Risk Assessment, Affirmed P-2(cr)

Issuer: Royal Bank of Scotland plc, New York Branch

  LT Bank Deposits (Local Currency), Affirmed A3 positive
  Counterparty Risk Assessment, Affirmed A3(cr)
  Counterparty Risk Assessment, Affirmed P-2(cr)

Issuer: Royal Bank of Scotland, Tokyo Branch

  Commercial Paper (Local Currency), Affirmed P-2
  Counterparty Risk Assessment, Affirmed A3(cr)
  Counterparty Risk Assessment, Affirmed P-2(cr)

Issuer: RBS Capital Funding Trust V

  BACKED Pref. Shelf (Local Currency), Affirmed (P)Ba3
  Pref. Stock Non-cumulative (Local Currency), Affirmed Ba3 (hyb)

Issuer: RBS Capital Funding Trust VI

  BACKED Pref. Shelf (Local Currency), Affirmed (P)Ba3
  BACKED Pref. Stock Non-cumulative Preferred Stock (Local
   Currency), Affirmed Ba3 (hyb)

Issuer: RBS Capital Funding Trust VII

  BACKED Pref. Shelf (Local Currency), Affirmed (P)Ba3
  BACKED Pref. Stock Non-cumulative (Local Currency), Affirmed
   Ba3 (hyb)

Issuer: RBS Capital Trust B

  BACKED Pref. Stock Non-cumulative (Local Currency), Affirmed
   B1 (hyb)

Issuer: RBS Capital Trust C

  BACKED Pref. Stock Non-cumulative (Foreign Currency), Affirmed
   B1 (hyb)

Issuer: RBS Capital Trust D

  BACKED Pref. Stock Non-cumulative (Foreign Currency), Affirmed
   B1 (hyb)

Issuer: RBS Capital Trust II

  BACKED Pref. Stock Non-cumulative (Local Currency), Affirmed B1
   (hyb)

Issuer: RBS Greenwich Capital Holding

  BACKED Commercial Paper (Local Currency), Affirmed P-2

Issuer: RBS Holdings N.V.

  Subordinate Shelf (Foreign Currency), Affirmed (P)Ba2
  Senior Unsec. Shelf (Foreign Currency), Affirmed (P)Ba1

Outlook Actions:

Issuer: The Royal Bank of Scotland Group plc
  Outlook, Changed To Positive From Stable

Issuer: The Royal Bank of Scotland plc
  Outlook, Changed To Positive From Stable

Issuer: National Westminster Bank PLC
  Outlook, Changed To Positive From Stable

Issuer: Royal Bank of Scotland N.V.
  Outlook, Changed To Positive From Stable

Issuer: Royal Bank of Scotland N.V. South Africa Br.
  Outlook, Changed To Positive From Stable

Issuer: Royal Bank of Scotland N.V., Chicago Branch
  Outlook, Changed To Positive From Stable

Issuer: Royal Bank of Scotland N.V., London Branch
  Outlook, Changed To Positive From Stable

Issuer: Royal Bank of Scotland N.V., Paris Branch
  Outlook, Changed To Positive From Stable

Issuer: Royal Bank Of Scotland plc, Connecticut
  Outlook, Changed To Positive From Stable

Issuer: Royal Bank of Scotland plc, New York Branch
  Outlook, Changed To Positive From Stable


SKETCHLEY GRANGE: Focus Hotels Buys Hotel Out of Administration
---------------------------------------------------------------
Storm Rannard at Insider Media Limited reports that a
Leicestershire hotel and spa which was on the market for GBP7.5
million has been bought out of administration by a private
investor.

The 96-bedroom Sketchley Grange Hotel & Spa in Burbage comprises
wedding and event facilities, conference space, a fitness center
and a recently refurbished restaurant and outdoor terrace,
according to Insider Media Limited.

It will be managed by Focus Hotels under a long term management
agreement.

The report notes that Adrian Berry of Deloitte said: "Following
our appointment in 2012, we finalized the new extension and
stabilized trading before appointing Then Hospitality under a
management agreement in July 2013.

"The trading performance improved significantly under our
appointment and we re-invested by refurbishing the function
suites, dining room, leisure suite and bedrooms.  The sale marks
the start of a new chapter for the hotel and its staff but
business and trading will not be affected," Mr. Berry added, the
report relays.

The venue was sold by Savills and CBRE Hotels.


UK COAL: Kellingley Colliery to Shut Down on December 18
--------------------------------------------------------
Alan Jones at The Scotsman reports that the end of production at
the UK's last remaining deep coal mine is scheduled to take place
in a week's time.

UK Coal confirmed that Kellingley Colliery in North Yorkshire is
set to close on Dec. 18, bringing an end to deep coal mining in
this country, The Scotsman relates.

The 450 miners who work at the pit -- known locally as the
Big K -- will receive severance packages at 12 weeks' of average
pay, The Scotsman discloses.

UK Coal plc -- http://www.ukcoal.com/-- is a United Kingdom-
based company engaged in surface and underground coal mining,
property regeneration and management, and power generation.



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


* Diamond Miners May Opt to Lower Prices to Restore Demand
----------------------------------------------------------
Diamond miners will remain under pressure over the next 12-18
months as slowing jewelry sales and reduced credit availability
for cutters and polishers have created a temporary supply and
demand mismatch, says Moody's Investors Service in a special
report published.  Despite the resulting 18% drop in rough
diamond prices in the first 11 months of 2015, the long-term
fundamentals for the sector remain solid.

"The latest drop in diamond prices, which are down about 28% from
a peak in 2014, may be insufficient to revive demand and we think
producers may have to cut prices further as supply and demand
challenges continue into 2016," says Denis Perevezentsev, a
Moody's Vice President -- Senior Credit Officer and author of the
report.  "Producers' decision to scale back production and/or
sales will help rebalance the market over the next 12-18 months."

ALROSA PJSC (Ba2 stable), the biggest rough diamond producer in
the world by volumes, has already reduced prices by 3% in
February 2015 followed by another 3% in April and 8% in the third
quarter.

Similarly, De Beers (unrated), a subsidiary of Anglo American plc
(Baa3 review for downgrade) and the biggest rough diamond
producer by value, reduced prices by 8% between the end of 2014
and June 2015 then cut them by a further 8%-10% in August.

However, weak currencies will help diamond producers with
production facilities outside the US in the next 12-18 months, as
their costs in dollar terms have declined in line with or
slightly less than diamond prices, partially offsetting the
negative impact of lower prices.

Moody's expects that ALROSA PJSC will be least affected by the
fall in rough diamond prices because most of its costs are in
roubles, which remain weak since depreciating by 42% against the
US dollar in 2014, while its revenues are mainly in dollars.

Diamond miners efforts to reduce production and/or sales volumes
during 2015 in response to the tough trading conditions, as well
as the natural depletion of existing diamond mines, will help
prevent supply from outpacing demand over the longer term.  A
lack of new discoveries and high depletion rates for existing
mines will help prevent a supply glut.  Global production will
grow modestly at cumulative annual growth rate of about 2% over
the next five-seven years and will start to decline from 2023,
which should support the pricing power of rough diamond
producers.


                            *********

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 * * *