TCREUR_Public/151229.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

          Tuesday, December 29, 2015, Vol. 16, No. 255



ANORTHOSIS: Creditor Files for Club's Liquidation


AREVA: S&P Lowers CCR to 'B+', Outlook Developing
LA FINANCIERE: S&P Affirms 'B+' CCR, Outlook Remains Stable


HECKLER & KOCH: S&P Lowers Corporate Credit Rating to 'SD'


TIM HELLAS: PE Firms Get Favorable Ruling in Suits v. Units


ANGLO IRISH BANK: Ireland Cancels More Debt Tied to Firm


BANCA ETRURIA: Government Rescue Ignites Bail-in Debate
ISTITUTO CENTRALE: S&P Lowers Ratings to 'BB-', Outlook Stable


EKIBASTUZ GRES-1: Fitch Affirms 'BB+' IDR, Outlook Stable


ALTISOURCE PORTFOLIO: S&P Affirms 'B+' ICR, Outlook Stable
AXIUS EUROPEAN: S&P Lowers Rating on Class E Notes to B
DEUTSCHE BANK: S&P Lowers Ratings on 3 Note Classes to 'CC'


KONINKLIJKE AHOLD: S&P Raises Rating on Financing Shares to 'BB+'


NORSKE SKOG: Bondholders Present New Debt Restructuring Proposal


BANCO SANTANDER: S&P Affirms 'BB+/B' Counterparty Credit Ratings


BALTIC FINANCIAL: S&P Affirms 'B/B' Counterparty Credit Ratings
BANIF - BANCO FUNCHAL: Fitch Withdraws 'B-' Issuer Default Rating
CARCADE LLC: Fitch Puts 'BB-' IDR on Rating Watch Negative
EVRAZ GROUP: Fitch Assigns 'BB-' Rating to USD750MM Unsec. Notes
METINVEST BV: To Propose U.K. Scheme of Arrangement


ABENGOA SA: Inks Agreement with Creditor Banks on Credit Line


DOMETIC GROUP: S&P Raises CCR to 'BB-'; Outlook Positive


KYIV CITY: S&P Raises ICR to 'CCC+', Outlook Stable

U N I T E D   K I N G D O M

B RILEY & SONS: Falls Into Administration, Cuts 131 Jobs
CAPARO INDUSTRIES: Cuts 33 Jobs at Caparo Precision
CLAVIS RMBS 2006-01: Fitch Affirms 'BBsf' Rating on Cl. B2a Notes
COLCHESTER WINTER: Goes Into Liquidation, Closes Down
GEMINI ECLIPSE 2006-3: S&P Lowers Ratings on 2 Note Classes to CC

HERCULES ECLIPSE 2006-4: S&P Cuts Ratings on 2 Notes to CCC
LITT CORPORATION: Falls Into Liquidation
SANDS HERITAGE: Creditors Approve Company Voluntary Arrangement
VITA CAPITAL VI: S&P Assigns BB Rating on to Class A Notes
WESTWOOD YARNS: In Administration, 135 Jobs at Risk

* UK: Atradius Sees New Round of Retail Insolvencies in New Year



ANORTHOSIS: Creditor Files for Club's Liquidation
------------------------------------------------- reports that the company that has been assigned
the maintenance of Famagusta football club Anorthosis 'Antonis
Papadopoulos' stadium has filed for the club's liquidation,
citing non-payment for its work since 2013, with the Larnaca
District Court scheduled to hear the case on January 25.

According to the suit, Greentech Trading Ltd, a Nicosia-based
landscaping business, is owed a total EUR185,000 by the football
club, which it has repeatedly sought to be paid, the report

The report relays that Anorthosis, the plaintiffs claim, has
repeatedly reneged on settlement agreements signed between the
two companies, and is thus unreliable and uncreditworthy.

Greentech asked the court to order the liquidation of the
company, or "any other measure deemed appropriate by the court",
in order to receive its dues, the report discloses.

Originally filed in November, the case was set for hearing by the
court on January 25, 2016, the report adds.


AREVA: S&P Lowers CCR to 'B+', Outlook Developing
Standard & Poor's Ratings Services said that it had lowered its
long-term corporate credit rating on France-based nuclear
services group AREVA to 'B+' from 'BB-'.  The outlook is

At the same time, S&P affirmed the 'B' short-term corporate
credit rating.

S&P also lowered its rating on AREVA's senior unsecured debt to
'B+' from 'BB-'.  The recovery rating is unchanged at '3',
indicating S&P's expectation of recovery in the higher half of
the 50%-70% range in the event of a default.

The downgrade follows AREVA's announcement on Dec. 17, 2015, that
it expects further large losses on completion of its reactors and
services activities, and additional losses on its discontinued
renewable activities.  These losses will further reduce AREVA's
equity, while its capital structure is already unsustainable, in
S&P's view.  In addition, S&P previously expected more clarity on
a pending capital increase by the end of this year, but details
of the financing plan will only be available by February 2016.
This means a shorter period for AREVA to arrange financing for a
EUR1 billion bond that matures in September 2016.  S&P believes
AREVA's current liquidity might not be sufficient to fully cover
the bond repayment, even if AREVA draws on its EUR1.25 billion
syndicated loan and other bilateral credit lines of approximately
EUR800 million, since it will depend on the amount of negative
free cash flow.  For these reasons, S&P considers that AREVA's
SACP has weakened to 'ccc+' from 'b-'.

Nonetheless, S&P still sees a high likelihood of extraordinary
government support for AREVA, due to AREVA's important role as
France's leading nuclear services provider, and its very strong
link with the state, which owns 87% of AREVA.  S&P therefore adds
three notches of uplift to the SACP.  S&P still assumes that the
French government will provide substantial equity or loans to the
company under the plan, to be announced in January or February
alongside AREVA's 2015 results.  But obtaining approvals from
European authorities may take time, so S&P understands that the
capital increase will only be completed by the end of 2016.

AREVA's highly leveraged financial risk profile reflects its very
high Standard & Poor's-adjusted debt of more than EUR9 billion as
of June 30, 2015, which S&P forecasts will increase further.  S&P
assumes Standard & Poor's-adjusted free operating cash flow
(FOCF) will remain negative at about EUR1.1 billion in 2015 and
possibly lower in 2016, due to restructuring cash outlays, before
reducing considerably by 2017.  The main reason for the cash burn
is AREVA's discontinued activities, notably Olkiluoto 3 (OL3) and
other large contracts at the reactors and services segment.  On
the positive side, the company has indicated that cost savings
and delays in its restructuring program should have reduced
negative free cash flow in the second half of 2015.

The developing outlook reflects that S&P may take a positive or
negative rating action on AREVA depending on the details of the
state-supported financing plan and 2015 results to be announced
in January or February 2016.

Specifically, S&P could take a positive rating action if AREVA's
credit quality stabilizes or improves as a result of the
financing plan and clear intention by the state regarding its
commitment to the capital increase.  In addition, ratings upside
could stem from the disposal of AREVA NP to EDF.  S&P currently
assumes that the capital increase, shareholder loans, and asset
disposals will well exceed EUR5 billion.

Conversely, if state support and financing measures are not
clearly laid out publicly by February 2016, S&P would likely
lower the ratings by one or several notches.

Other risk factors relate to:

   -- The European authorities' approval of the state's capital
      injection into AREVA;

   -- The French nuclear authorities' ongoing testing of the
      Flamanville reactor pressure vessel, which is expected to
      be concluded by midyear 2016 and, if unsuccessful, could
      entail major costs and jeopardize the disposal of AREVA NP;

   -- The complexity of future risk and liability assumptions by
      the state, in relation to OL3.

LA FINANCIERE: S&P Affirms 'B+' CCR, Outlook Remains Stable
Standard & Poor's Ratings Services said that it affirmed its 'B+'
corporate credit rating on France-based facilities management
provider La Financiere Atalian SAS.  The outlook remains stable.

At the same time, S&P affirmed its 'B' issue rating on Atalian's
EUR250 million notes due January 2020.  The recovery rating on
the notes is unchanged at '5', indicating S&P's expectation of
modest recovery prospects in the lower half of the 10%-30% range
in the event of default.

Atalian's financial metrics continue to be at the weaker end of
the range for an aggressive financial risk profile assessment.
The company's three-year weighted-average Standard & Poor's-
adjusted ratio of funds from operations to debt is 12%,
borderline between S&P's aggressive and highly leveraged
financial risk profile categories, and the three-year weighted-
average adjusted debt-to-EBITDA ratio is 4.7x, close to S&P's 5x
threshold for a highly leveraged assessment.

Because S&P expects metrics to remain within the aggressive
category, it has revised its financial risk profile assessment
upward to aggressive from highly leveraged.  This has not had an
impact on the rating because S&P now applies a downward
adjustment to the rating under S&P's "comparable ratings
analysis" modifier to reflect that the core credit ratios are at
the weaker end of S&P's aggressive assessment.  S&P also takes
into account the company's degree of reliance on the French low-
wage training tax subsidy CICE for maintaining credit metrics.
S&P do not yet know if CICE will be continued beyond 2016, and
this uncertainty constrains the group's potential for

Atalian operates in a highly competitive and fragmented sector
with limited barriers to entry, fairly low margins, and
significant exposure to wage-cost inflation.  Atalian's margins
continue to be supported by CICE, which represents about one-
third of the group's EBITDA (as S&P treats it as operating
income) but is set to expire in 2016.  The company's geographic
diversification has improved over the last two years, and S&P
expects diversification will continue to increase.  Nevertheless,
in the financial year ending Aug. 31, 2015, the group sourced
roughly 70% of revenues from its core market of France, where it
has a stable market position.  S&P continues to assess Atalian's
business risk profile as fair.

The combination of a fair business risk profile and aggressive
financial risk profile result in an anchor -- S&P's initial
analytical outcome -- of 'bb-'.  S&P then adjusts the anchor
downward by one notch to reflect its negative comparable ratings
analysis modifier, as noted above.

The stable outlook reflects S&P's expectation that the group's
continuing expansion outside Europe will partly offset the still-
uncertain market conditions prevailing in France.  S&P expects
the company's adjusted debt-to-EBITDA ratio will stay below 5x.

S&P could lower the rating during the next 12 months if Atalian's
operating performance is weaker than S&P expects -- with margins
falling below 5%, causing ongoing cash outflows to increase and
liquidity to deteriorate, and adjusted debt to EBITDA rising
above 5x.

Although S&P don't currently expect to raise the rating, it could
consider an upgrade if the company sustained adjusted debt to
EBITDA ratios of 4.0x-4.5x and if the French government confirmed
that the CICE tax would continue beyond 2016.


HECKLER & KOCH: S&P Lowers Corporate Credit Rating to 'SD'
Standard & Poor's Ratings Services said it lowered its long-term
corporate credit rating on German defense contractor Heckler &
Koch GmbH to 'SD' from 'CCC' and its long-term issue rating on
the company's senior secured notes to 'D' from 'CCC-'.

On Dec. 17, 2015, during Heckler & Koch's third quarter results
call, the company announced that it had acquired EUR45 million of
its outstanding EUR295 million senior notes due 2018 at below par
value.  The repurchase was at a discount of about 11%.  During
the call, management also stated that they are considering
additional repurchases subject to market conditions and
sufficient liquidity.

S&P views this exchange as distressed rather than opportunistic
considering the fact that both the rating and below-par bond
prices indicate a realistic possibility of conventional default
over the near- to medium-term.

S&P plans to raise the corporate credit rating on Heckler & Koch
back to 'CCC' in the coming days to reflect S&P's forward-looking
opinion of the company's creditworthiness.  The issue rating will
remain at 'D' until such time that S&P assess the likelihood of
further distressed exchanges as low.


TIM HELLAS: PE Firms Get Favorable Ruling in Suits v. Units
Stephanie Bodoni at Bloomberg News reports that the Luxembourg
court ruled in favor of private equity firms, TPG and Apax, in a
lawsuit over the legality of a 2006 transaction involving a
Luxembourg holding of former TIM Hellas.

According to Bloomberg, liquidators for Hellas Telecommunications
(Luxembourg) II sued former subsidiaries of TPG and Apax in
Luxembourg, seeking payback of almost EUR1 billion they say the
firms got illegally.

The Luxembourg commercial court ruled that the Luxembourg Court
decision, which rejects claims as inadmissible, can be appealed,
Bloomberg relates.

TIM Hellas was formerly Greece's third-largest wireless phone

            About Hellas Telecommunications

In February 2007, Hellas Telecommunications was purchased from
TPG Capital LP and Apax Partners by the Italian
telecommunications giant Weather Group.  The Company later
suffered liquidity problems and commenced administration
proceedings in the U.K. in November 2009.  The administrators
sold 100% of the shares of Wind Hellas to the existing owners,
the Weather Group.  An order placing the Company into liquidation
was entered on Dec. 1, 2011.

Andrew Lawrence Hosking and Carl Jackson, as Joint Liquidators
petitioned for the Chapter 15 protection for the Company (Bankr.
S.D. N.Y. Case No. 12-10631) on Feb. 16, 2012.  Bankruptcy Judge
Martin Glenn presides over the case.

The Debtor estimated assets and debts of more than
US$100,000,000. The Debtor did not file a list of creditors
together with its petition.

The petitioners are represented by Howard Seife, Esq., at
Chadbourne & Parke LLP .


ANGLO IRISH BANK: Ireland Cancels More Debt Tied to Firm
Reuters reports that Ireland's debt agency purchased EUR500
million of Irish government bonds from the central bank and
cancelled them, bringing to EUR2 billion the total cancelled this
year relating to a deal to ease the state's debt burden.

As part of a 2013 deal struck with the European Central Bank to
stretch out the cost of liquidating the collapsed Anglo Irish
Bank, Ireland pledged to slowly feed new bonds worth EUR25
billion into the market via the central bank, according to

Last year, the central bank sold the minimum EUR500 million of
bonds acquired during Ireland's financial crisis but, under
pressure from the ECB, it has now disposed of EUR2 billion this
year, the report notes.

The bank is obliged to sell at least EUR500 million a year until
2018, the report adds.


BANCA ETRURIA: Government Rescue Ignites Bail-in Debate
James Politi at The Financial Times reports that the bail-in of
Banca Etruria sparked a debate in Italy.

Banca Etruria never closed: in fact it was saved from collapse
last month along with three other small banks in a dramatic
rescue operation engineered by the center-left Italian government
led by Matteo Renzi, the FT relates.

The trouble is there was a price to pay: under the terms of the
deal, several thousand subordinated bondholders were wiped out
along with Banca Etruria shareholders, while holders of senior
debt and depositors were spared, the FT notes.

Though their numbers are small, the plight of the distressed
Banca Etruria retail investors has shaken Arezzo, a city known
for its gold jewellery manufacturers, the FT discloses.

But the reverberations of the bank rescue have also been felt far
beyond Tuscany: as Europe prepares to institute new rules from
next year which would force losses on bank creditors and big
depositors, the saga of Banca Etruria serves as a cautionary tale
to politicians and policymakers about the public backlash that
could follow any future "bail-ins", the FT states.

On a national level, anger has been mounting towards Mr. Renzi
for his handling of the affair, the FT says.

The main criticism of Mr. Renzi -- who is otherwise known for his
sharp political instincts -- is that he botched the rescue by
giving in to EU rules on state aid which prevented the government
from protecting all Banca Etruria investors, the FT discloses.

Italian officials have stridently defended the terms of the
rescue, saying it was the best option available, the FT relays.
Had the rescue waited until January 2016, tougher EU rules would
have kicked in that could have forced a "bail-in" of depositors
with over EUR100,000 in order to save the hit to public finances,
according to the FT.

Meanwhile, the government has set up a fund worth about EUR100
million to help compensate the hardest hit victims of the rescue
and damp some of the increasingly vocal protests, the FT

Banca Etruria is a local bank based in the medieval Tuscan city
of Arezzo.

ISTITUTO CENTRALE: S&P Lowers Ratings to 'BB-', Outlook Stable
Standard & Poor's Ratings Services said that it had lowered to
'BB-' from 'BB+' its long-term ratings on Istituto Centrale delle
Banche Popolari Italiane SpA (ICBPI) and its core subsidiary
CartaSi.  At the same time, S&P removed the ratings from
CreditWatch with negative implications, where they were placed on
June 24, 2015.  S&P also affirmed the 'B' short-term ratings on
both entities.  The outlook on ICBPI and CartaSi is stable.

At the same time S&P assigned a 'B' counterparty credit rating to
MercuryBondCo, the new issuing vehicle established by ICBPI's
acquirers.  The outlook is stable.  S&P also assigned a 'B' issue
rating to the payment in kind (PIK) toggle notes issued by
MercuryBondCo.  These ratings are in line with the preliminary
ratings S&P assigned on Nov. 2, 2015.

The downgrade reflects S&P's view that the approved ICBPI
acquisition by a private equity consortium diminishes ICBPI's
creditworthiness, mainly because of the double leverage that the
transaction is expected to generate for the wider group and the
broader potential implications it may have on ICBPI's financial
policy and strategy.

Under the transaction terms, the consortium financed the ICBPI
acquisition by raising EUR1.1 billion debt (through the issuance
of senior PIK toggle notes issued by MercuryBondCo).  The
remainder, around EUR900 million, was financed through equity.
MercuryBondCo issued the new debt instruments as senior PIK
toggle notes.  The interest payments on these will depend on the
flows of dividends upstreamed from ICBPI.

S&P consequently sees ICBPI as part of a larger group, of which
it is by far the biggest component.  In S&P's view, ICBPI's
creditworthiness will be influenced by weaker (and more
leveraged) parts of the group.  To better assess the impact of
the increased leverage on ICBPI, S&P has broadly estimated the
capital position of the new group.  S&P estimates that, under the
proposed terms, the consolidated risk-adjusted capital (RAC) in
2016 and beyond would be negative due to material intangible
assets not being offset by the retained earnings S&P expects
during the forecast period.  S&P views this as more negative than
its projected 7% RAC ratio for ICBPI.  In addition, S&P thinks
that ICBPI's creditworthiness could be compromised by a more
aggressive business strategy.

S&P is therefore lowering its capital and earnings assessment to
moderate from adequate, and its risk position assessment to weak
from adequate, while keeping all the other SACP components
unchanged.  This results in a new entity's group credit profile
(GCP) of 'bb-'.

S&P consequently assigns its rating to MercuryBondCo based on
S&P's view that it is an issuing vehicle of a nonoperating
holding company (NOHC).  Under S&P's group rating methodology for
NOHCs, the gap between the issuer credit rating (ICR) of a NOHC
and the zperating companies (OpCos) is at least two notches when
the GCP is lower than 'bbb-'.  S&P's assessment incorporates the
subordination of MercuryBondCo compared to ICBPI (especially
given the latter's regulated nature) and the debt-servicing
ability of MercuryBondCo.

S&P usually derives the ICR for a NOHC by applying standard
notching down from the group's main operating entity.  This is to
reflect the reliance of the NOHC on dividend distributions from
the OpCo to meet its obligations, as well as supervisory barriers
to payments, potentially different treatment in a default
situation, and the structural subordination of NOHC obligations
to those at the OpCo level.

S&P equalizes the rating on the PIK toggle notes with the ICR of
the issuer, MercuryBondCo.  According to S&P's methodology, a PIK
feature does not cause an instrument to be rated lower than the
ICR on the issuer.

The stable outlook reflects S&P's view that the prospect of a
rating change from 'BB-' is remote over the next 12 months.

Although unlikely at this stage, S&P could upgrade ICBPI if S&P
was to expect the bank to maintain its RAC ratio above 7% over
the next 12 to 18 months, mainly as a result of a combination of
diminished economic risks in Italy and higher-than-S&P-expects
earning generation.

S&P could lower the ratings if it anticipated that ICBPI's
solvency or liquidity position were to significantly deteriorate
as a result of a financial policy that is more aggressive than


EKIBASTUZ GRES-1: Fitch Affirms 'BB+' IDR, Outlook Stable
Fitch Ratings has affirmed Kazakhstan-based electricity power
plant Ekibastuz GRES-1 LLP's Long-term foreign currency Issuer
Default Rating at 'BB+'.  The Outlook is Stable.

The ratings reflect the risks inherent in Ekibastuz GRES-1
business profile, including uncertainty in regulated tariffs
after 2015.  They also reflect significant capex in 2016-2018,
which will result in negative free cash flow (FCF) and gradual
deterioration of funds from operation (FFO) adjusted leverage to
1.9x in 2018 from 0.2x in 2014, based on Fitch's conservative

Positively, the ratings factor in the strong market position of
Ekibastuz GRES-1, its strategic importance for the Kazakh state
(BBB+/Stable), its high profitability and its solid credit
metrics.  While Ekibastuz GRES-1's forecast credit metrics are
strong for its rating, these are offset by the business risk

Ekibastuz GRES-1's ratings also benefit from a one-notch uplift
for support from its 100% shareholder - JSC Samruk-Energy
(Samruk-Energy, BBB-/Stable), which is in turn 100% state-owned
via National Welfare Fund Samruk-Kazyna JSC (Samruk-Kazyna,


Tariff Uncertainty after 2015

The introduction of the capacity market in Kazakhstan, initially
planned for 2016, was postponed until 2019 at the request of
industrial producers who appealed to the inadmissibility of high
tariff growth during economic slowdown.

The final impact on Ekibastuz GRES-1's operational and financial
profile is unclear at present since a potential decrease in the
company's approved tariffs would be compensated by larger sales
volumes due to increased competitiveness.  Nevertheless, tariff
uncertainty for 2016 and beyond is reducing the company's cash
flow visibility.

Fitch conservatively assumes 0% tariff growth for 2016-2018 and
postponement of part of the company's capex to 2018-2019.  This
would result in Fitch's negative rating guidelines not being
breached until 2019.

Intensive Capex to Weaken Leverage

Fitch expects Ekibastuz GRES-1's extensive investment program of
KZT125 billion over 2016-2019 (including development and
maintenance projects) to be extensively debt-funded.  Fitch
estimates the company will continue generating healthy cash flows
from operations of KZT34 billion on average over 2016-2019.

However, FCF is likely to remain negative due to ambitious
investment plans and dividend payments of KZT8bn annually.  Fitch
forecasts, under its conservative assumptions, that Ekibastuz
GRES-1's FFO adjusted gross leverage will deteriorate to 1.9x in
2018 from 0.2x at end-2014.  However, Fitch's negative rating
guidelines are not expected to be breached until 2019 when
substantial amounts of capex postponed from 2016-2018 are
expected to be spent.

Weak Results for 2015 Expected

Fitch estimates EBITDA for 2015 to have declined 19%, due to the
lack of electricity exports to Russia and economic slowdown in
Kazakhstan.  Electricity exports to Russia, which accounted for
10% of the company's sales last year, ceased since November 2014,
mostly due to adverse RUB/KZT fluctuations.

Further Ekibastuz GRES-1 has borne the brunt of the economic
slowdown and declining electricity demand in Kazakhstan since it
has one of the largest approved tariffs in the country.  Despite
significant tenge depreciation vs. USD in 2H15, Fitch does not
expect exports to Russia to resume.

Financial Profile Remains Strong

Ekibastuz GRES-1's 'BB' standalone rating is underpinned by solid
credit metrics and high profitability (EBITDA margin of 61% in
1H15), double-digit FFO interest coverage and low FFO adjusted
grow leverage (below 1x in 2014-2015).  Fitch expects some
deterioration of the company's financial profile over the next
three years due to ambitious capex program.  Nevertheless, FFO
adjusted gross leverage is expected to remain below 2.0x over
2016-2018, placing the company favorably against similarly rated
CIS counterparts and on a par with certain higher rated
international peers.

One-Notch Uplift for Parent Support

Fitch continues to consider strategic, operational and legal ties
between Ekibastuz GRES-1 and its parent Samruk-Energy to be
fairly strong and incorporate a one-notch uplift for parental
support into the company's 'BB+' rating.  While there are no debt
guarantees between the company and its parent, we believe that
the cross-default provisions in Samruk-Energy's USD500 million
eurobonds could be triggered by a default on Ekibastuz GRES-1's
domestic bonds.


Fitch's key assumptions within our rating case for the issuer

   -- Zero tariff growth in 2016-2018
   -- Electricity production to increase below GDP growth
   -- Inflation-driven cost increase (including coal)
   -- Dividends of KZT8bn per year for 2016-2018
   -- Part of capex postponed to 2018-2019 from 2016-2017, while
      maintaining total amount in line with management guidance


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

   -- Stronger parental support;
   -- Long-term predictability of the regulatory framework after
   -- A more diversified and efficient asset base.

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

   -- Weaker parental support, especially regarding short-term
      liquidity provision and refinancing backstop.  Inability to
      refinance existing loans and to raise new debt to cover
      cash shortfall in 2016;

   -- FFO-adjusted gross leverage persistently higher than 2x and
      FFO interest coverage below 4x, for instance, due to a
      substantially above-inflation increase in coal price and/or
      tariffs materially lower than Fitch's forecasts;

   -- A substantial increase in coal price without a full pass-
      through to power price;

   -- Committing to capex without sufficient available funding,
      worsening overall liquidity position.


Fitch views Ekibastuz GRES-1's liquidity as weak but manageable.
At end-9M15 Ekibastuz GRES-1 had cash and cash equivalents of
KZT1.1 billion vs. short-term debt of KZT35 billion.  Outstanding
debt is represented by a KZT23 billion loan from Sberbank (BBB-
/Negative) and a KZT12bn loan from Halyk Bank of Kazakhstan
(BB/Stable) carrying a 14% interest rate.

All debt facilities are due in April-May 2016, creating
refinancing risks for the company.  Ekibastuz GRES-1 anticipates
refinancing these loans with a bond issue or a loan.  The parent
has confirmed to Fitch its ability and willingness to provide
liquidity to Ekibastuz GRES-1 on a timely basis for the
subsidiary's debt maturities.


  Long-term foreign currency IDR affirmed at 'BB+', Outlook

  Long-term local currency IDR affirmed at 'BB+', Outlook Stable

  National Long-term Rating affirmed at 'AA-(kaz)', Outlook

  Expected local currency senior unsecured rating on the proposed
   KZT20bn notes affirmed at 'BB+(EXP)'

  Expected National senior unsecured rating assigned on the
   proposed KZT20bn notes affirmed at 'AA-(kaz) (EXP)'


ALTISOURCE PORTFOLIO: S&P Affirms 'B+' ICR, Outlook Stable
Standard & Poor's Ratings Services said it revised its rating
outlook on Altisource Portfolio Solutions S.A. to stable from
negative and affirmed its 'B+' issuer credit rating.

"The outlook revision reflects our view that Altisource's largest
client, Ocwen Financial Corp., which contributes approximately
60% to total revenues, has made progress during the past several
years to address many of the concerns and violations identified
by various regulatory bodies," said Standard & Poor's credit
analyst Richard Zell.  "As of late, much of the regulatory news
coming from Ocwen has been positive developments involving
settlements, a contrast with the stream of negative announcements
during 2011-2014."  Additionally, Ocwen has made a concerted
effort to deleverage during 2015, thus improving the firm's
financial risk profile.  S&P believes that the relative reduction
of regulatory risk and the lower leverage profile at Ocwen
results in increased operational stability at Altisource.

The stable outlook on Altisource reflects Standard & Poor's view
that much of the regulatory risk that threatened the viability of
Ocwen, the firm's largest client, has abated.  S&P expects that
revenues will remain concentrated in products and services that
are focused on the domestic mortgage and real estate industry, an
industry that S&P believes is prone to cyclicality, which will
limit its assessment of Altisource's business risk profile long-
term.  Additionally, S&P expects that the firm will operate with
a debt-to-EBITDA ratio of 2x-3x during the next 12 months.

S&P could lower the rating on Altisource if S&P expects a
material change to the company's relationship with Ocwen, such
that a large portion of the firm's revenues are at risk and it
becomes evident that Altisource does not have an effective
strategy to replace this lost revenue.  For instance, S&P could
lower the rating if it expected that reduced revenues would cause
debt to EBITDA to sustainably exceed 3x.

An upgrade of Altisource is unlikely during the next 12 months,
given its reliance on Ocwen for approximately 60% of its revenue,
the concentration of revenue related to U.S. real estate
activities, and the debt-to-EBITDA ratio that is on the weaker
side of the 2x-3x range.  Additionally, S&P's rating on
Altisource is currently limited by the company's governance
structure.  If S&P believes that corporate governance has been
enhanced, it could revise its assessment of management and
governance, possibly leading to an upgrade. Additionally, if
Altisource commits to operating with a debt-to-EBITDA ratio below
2x, S&P could raise the rating.

AXIUS EUROPEAN: S&P Lowers Rating on Class E Notes to B
Standard & Poor's Ratings Services raised its credit ratings on
Axius European CLO S.A.'s class A, B1, B2, and C notes.  At the
same time, S&P has affirmed its rating on the class D notes, and
lowered its rating on the class E notes.

The rating actions follow S&P's assessment of the transaction's
performance using data from the Nov. 3, 2015, trustee report and
the application of its relevant criteria.

"We subjected the capital structure to a cash flow analysis to
determine the break-even default rate (BDR) for each rated class
at each rating level.  The BDR represents our estimate of the
maximum level of gross defaults, based on our stress assumptions,
that a tranche can withstand and still fully repay the
noteholders.  In our analysis, we used the portfolio balance that
we consider to be performing (EUR162,516,179), the current
weighted-average spread (3.92%), and the weighted-average
recovery rates calculated in line with our corporate cash flow
collateralized debt obligation (CDO) criteria.  We applied
various cash flow stresses, using our standard default patterns,
in conjunction with different interest rate stress scenarios,"
S&P said.

Since S&P's Jan. 17, 2013 review, the aggregate collateral
balance has decreased by 50.06% to EUR162.52 million from
EUR325.40 million.

The class A notes have amortized by EUR157.22 million since S&P's
previous review.  In S&P's view, this has increased the available
credit enhancement for all rated classes of notes.  The
transaction's weighted-average spread and coverage tests have
also improved, however, its weighted-average life has increased
since S&P's previous review.

The exposure to obligors based in countries rated below 'A-' is
greater than 10% of the aggregate collateral balance (11.1%).
Therefore, S&P has also applied additional stresses in accordance
with its nonsovereign ratings criteria.

Taking into account the results of S&P's credit and cash flow
analysis and the application of its nonsovereign ratings
criteria, S&P considers that the available credit enhancement for
the class A, B1, B2, and C notes is commensurate with higher
ratings than those previously assigned.  S&P has therefore raised
its ratings on these classes of notes.

S&P's credit and cash flow analysis results indicate that the
available credit enhancement for the class D notes is
commensurate with the currently assigned rating, while the credit
enhancement for the class E notes is commensurate with a lower
rating than currently assigned.  S&P has therefore affirmed its
'BB+ (sf)' rating on the class D notes and lowered to 'B (sf)'
from 'B+ (sf)' its rating on the class E notes.

Axius European CLO is a cash flow collateralized loan obligation
(CLO) transaction that securitizes loans to primarily
speculative-grade corporate firms.  The transaction closed in
October 2007 and its reinvestment period ended in November 2013.
3i Debt Management Investments is the transaction manager.


Class             Rating
            To                 From

Axius European CLO S.A.
EUR350 Million Floating-Rate Notes

Ratings Raised

A           AAA (sf)           AA (sf)
B1          AA+ (sf)           A+ (sf)
B2          AA+ (sf)           A+ (sf)
C           A+ (sf)            BBB (sf)

Rating Affirmed

D           BB+ (sf)

Rating Lowered

E           B (sf)             B+ (sf)

DEUTSCHE BANK: S&P Lowers Ratings on 3 Note Classes to 'CC'
Standard & Poor's Ratings Services lowered to 'CC (sf)' from
'CCC- (sf)' its credit ratings on Deutsche Bank Luxembourg S.A.
(DBL) series 50's class A2, A3, and A4 notes.  At the same time,
S&P has affirmed its 'B- (sf)' rating on the class A1 notes.

DBL's series 50 is a resecuritization of GEMINI (ECLIPSE 2006-3)
PLC's class A notes.  At closing, the seller--Deutsche Bank AG--
sold to DBL GBP175.84 million of GEMINI (ECLIPSE 2006-3)'s class
A commercial mortgage-backed securities (CMBS) floating-rate
notes. The issuance of the notes funded the purchase of this
portion of GEMINI (ECLIPSE 2006-3)'s class A notes.

The rating actions follow S&P's Dec. 22, 2015 lowering to
'CC (sf)' from 'CCC- (sf)' of its rating on GEMINI (ECLIPSE 2006-
3)'s class A notes.

DBL's series 50 receives 30.90% of all of the class A notes'
proceeds in GEMINI (ECLIPSE 2006-3).  With total net noteholder
recoveries of approximately GBP180 million from the GEMINI
(ECLIPSE 2006-3) transaction, S&P expects recovery proceeds
allocated to DBL's series 50 to be approximately GBP55.6 million.
After deducting for senior expenses, this would be sufficient to
only repay the class A1 notes.  S&P has therefore affirmed its
'B- (sf)' rating on the class A1 notes.

At the same time, S&P has lowered to 'CC (sf)' from 'CCC- (sf)'
its ratings on the class A2, A3, and A4 notes.  S&P rates a
tranche 'CC' when it expects a default to be a virtual certainty.
This in line with S&P's criteria for assigning such ratings.


Deutsche Bank Luxembourg S.A. RE Series 50
GBP175.84 mil Fiduciary Notes Series 50
Class              Identifier        To                 From
A1                 XS0570457795      B-                 B-
A2                 XS0570458090      CC                 CCC-
A3                 XS0570458256      CC                 CCC-
A4                 XS0570458413      CC                 CCC-


KONINKLIJKE AHOLD: S&P Raises Rating on Financing Shares to 'BB+'
Standard & Poor's Rating Services said that it has raised its
issue ratings on the cumulative preferred financing shares of
Netherlands-based food retailer Koninklijke Ahold N.V. (Ahold;
BBB/Stable/A-2) to 'BB+' from 'BB'.

No other ratings on the group or its debt ratings have been

The paid-in capital for issued cumulative preferred financing
shares and the related additional paid-in capital amounts to
EUR497 million.

Based on S&P's review of the available documentation for these
securities, it now assess that the securities have optional
deferability of interest payments.

S&P now rates these cumulative preferred financing shares two
notches below the 'BBB' issuer credit rating on the group.

The 'BB+' issue rating reflects a downward adjustment from the
issuer credit rating of one notch for subordination--because the
corporate credit rating on Ahold is investment grade--and another
notch for the optional deferability of interest payments.  In
S&P's opinion, there is a relatively low likelihood that the
issuer will defer interest; should S&P's view change, it may
increase the number of downward notches that it applies to the
issue rating.


In S&P's calculation of Ahold's credit ratios, S&P will treat
100% of the cumulative preferred financing shares as debt-like,
as the instruments are classified as having low equity content.
S&P's calculation is consistent with the treatment in the group's
IFRS financial statements.


NORSKE SKOG: Bondholders Present New Debt Restructuring Proposal
Luca Casiraghi at Bloomberg News reports that a group of Norske
Skogindustrier ASA's secured bondholders sent management a new
proposal to restructure the company's debt, countering the terms
of an offer announced on Dec. 22.

Rothschild, which is advising 62% of holders of EUR290 million
(US$317 million) of bonds due December 2019, is asking management
to consider a plan to limit obligations that pay interest in cash
to a maximum of five times earnings before interest, taxes,
depreciation and amortization without necessarily diluting
shareholders, according to a document seen by Bloomberg.

The unprofitable Norwegian newsprint producer is seeking to
restructure its approximately US$1 billion of debt as it closes
in on its ninth year of declining sales, Bloomberg discloses.
The company agreed last week on terms of an exchange offer with
GSO Capital Partners and Cyrus Capital Partners LP, which own
some of its unsecured bonds due in the next two years and 11.5%
of its shares, Bloomberg relates.

The company, Bloomberg says, will hold an extraordinary general
meeting to discuss the exchange offer and the replacement of
three board members on Jan. 6 as requested by GSO and Cyrus this
month.  Rothschild is asking management to share the terms of its
plan with shareholders before the meeting, Bloomberg relays,
citing the document.

Norske Skogindustrier ASA or Norske Skog, which translates as
Norwegian Forest Industries, is a Norwegian pulp and paper
company based in Oslo, Norway and established in 1962.

                          *     *     *

As reported by the Troubled Company Reporter-Europe on November
20, 2015, Moody's Investors Service, downgraded Norske
Skogindustrier ASA's (Norske Skog) Corporate Family Rating
("CFR") to Caa3 from Caa2 and its Probability of Default Rating
(PDR) to Ca-PD from Caa2-PD.  Moody's said the outlook is


BANCO SANTANDER: S&P Affirms 'BB+/B' Counterparty Credit Ratings
Standard & Poor's Ratings Services affirmed the 'BB+/B' long- and
short-term counterparty credit ratings on Portugal-based Banco
Santander Totta S.A.  The outlook is stable.

S&P also affirmed the issue credit ratings, including the 'B-'
rating on the preference stock guaranteed by Totta.

The affirmation follows Totta's announcement that it will acquire
a substantial part of the commercial activity of Banif (not
rated), which is being resolved, for EUR150 million.  The
transaction has been approved by the European Commission and is
effective from the announcement date of Dec. 21, 2015.

The transaction does not affect S&P's view of Totta's highly
strategic importance to Banco Santander S.A.  In S&P's view, the
acquisition will be neutral for Totta's 'bb+' stand-alone credit
profile (SACP) and ratings, although the bank's capital will
likely weaken.  S&P estimates that Totta's year-end 2016 RAC
ratio, before diversification adjustments, could be about 100 bps
lower than S&P had previously estimated, at 6.0%-6.5% compared to
its prior forecast of 7.0%-7.5%.  S&P therefore now assess
Totta's capital and earnings as moderate, rather than adequate,
although this is neutral to S&P's assessment of the bank's SACP.

S&P does not expect Banif to increase the risk profile of Totta,
despite Banif's weak asset-quality track record (Banif reported a
credit-at-risk ratio of 23.6% at end-June 2015, almost double
that of the Portuguese financial system).  S&P takes comfort from
the fact that an important share of Banif's impaired assets --
with a net book value of about EUR2.2 billion -- will be
transferred to an asset management vehicle, fully owned by the
Portuguese Resolution Fund.  Furthermore, S&P understands that
any remaining nonperforming exposure acquired by Totta will be
adequately provisioned.

S&P does not expect Totta's funding profile and liquidity metrics
to be affected by the addition of Banif.

From a business perspective, the acquisition will allow Totta to
increase its domestic market share in loans and deposits by
around 2.5% from 10%-11% currently.  It will also significantly
enhance its presence in the regions of Acores and Madeira, where
Banif has market shares of more than 30% and 20%, respectively.
S&P do not expect significant business attrition following the
acquisition. However, nor do S&P sees the addition of Banif as
transformational for Totta.

S&P's current ratings on Totta remain at the level of its SACP.
S&P continues to see Totta as a highly strategic subsidiary of
Banco Santander S.A.  Under S&P's group methodology criteria,
Totta would be eligible to be rated one notch below its parent.
However, at the current level, Totta does not benefit from uplift
for group support as this would lead to the subsidiary being
rated above the Portuguese sovereign.

The outlook on Totta remains stable, mirroring that on Portugal.
All other things being equal, only changes to the sovereign
rating would lead S&P to upgrade or downgrade Totta.


BALTIC FINANCIAL: S&P Affirms 'B/B' Counterparty Credit Ratings
Standard & Poor's Ratings Services said that it had affirmed its
'B/B' long- and short-term counterparty credit ratings on Baltic
Financial Agency Bank (BFA Bank).  The outlook is negative.

At the same time, S&P affirmed its Russia national scale rating
on BFA Bank at 'ruBBB+'.

All these ratings were removed from CreditWatch with negative
implications, where S&P placed them on Oct. 16, 2015.

S&P expects BFA Bank to maintain at least moderate capitalization
over the next 12-18 months.  Although S&P anticipates its risk-
adjusted capital (RAC) ratio will dip as low as 4.8% at year-end
2015, S&P believes it will rebound to 5.0%-5.1% by late 2016.
S&P's forecast is based on the assumption that BFA Bank will
build its loan book by no more than 20% in 2016, with assets
expanding by around 8%-10%.  S&P expects the net interest margin
to rebound to 2.6% in 2016 compared with 1.1%-1.2% for 2015 on
the back of the gradual decline of the central bank's key rate.
Moreover, S&P believes that fees and commissions will pick up,
albeit from a very low base.

S&P's forecast includes very high new loan-loss provisions for
2015 of Russian ruble (RUB) 3.5 billion, or 9% of the average
loan book, with a major portion of this figure stemming from the
need to provide for foreign currency-denominated exposure to
Transaero Airlines.  At the same time, S&P believes that the cost
of risk will likely be contained at 2.5% or less, as borrowers'
projects unwind.

S&P expects BFA Bank's earnings buffer, which measures a bank's
ability to cover normalized losses, to rebound in 2016 with the
three-year average figure improving to 40 basis points (a level
commensurate with that of many peers with higher stand-alone
credit profiles).

S&P notes that Vladimir Kogan, whose son, Efim, and other
business partners own BFA Bank, became involved with the
financial rehabilitation of Bank URALSIB.  S&P has no sufficient
information to assess the impact the support of Bank URALSIB will
have on the creditworthiness of BFA Bank, but expect to obtain
more clarity in the next six months.

The negative outlook reflects S&P's view that, in the next 12
months, BFA Bank's capitalization will remain vulnerable to
further deterioration of credit quality of its exposures and
challenging operational environment in Russia.

S&P may take a negative rating action if it sees BFA Bank's
capitalization deteriorating to what S&P considers a weak level,
with the RAC ratio declining below 5%.  This would likely come
from higher-than-expected growth or credit costs not compensated
by sufficient capital injections from the shareholders.  A
decline in customers' confidence and withdrawal of deposits, or
inability to shift to a more sound business model would also
likely trigger a negative rating action.

A positive rating action is unlikely in the next 12 months.

BANIF ? BANCO FUNCHAL: Fitch Withdraws 'B-' Issuer Default Rating
Fitch Ratings has downgraded Banif - Banco Internacional do
Funchal, S.A.'s Viability Rating (VR) to 'f' from 'b-'.  The
agency has simultaneously withdrawn all of the bank's ratings,
including its 'B-' Long-term Issuer Default Rating.

The rating actions follow the Bank of Portugal's decision to put
Banif into resolution on Dec. 19, 2015.  In conjunction with
this, the European Commission has approved plans to provide
EUR2.25 bil. of state aid to cover the bank's funding gap.  This
additional state aid facilitated the transfer of a large part of
Banif's activities to Banco Santander Totta (BBB/Positive) and
the orderly wind-down of the remainder of Banif's impaired
assets.  Fitch understands from the bank that the resolution does
not result in losses on any senior liabilities, while holders of
junior debt are subject to bail-in.


Fitch's decision to withdraw the IDR, Support Rating and Support
Rating Floor reflects its view that with the reorganization
related to the resolution, among other aspects involving the
transfer of assets and liabilities, the remaining entity no
longer holds senior obligations to third-party, non-government
creditors that represent reference liabilities for the IDR.
Following the reorganization, information regarding its remaining
balance sheet is limited.

The downgrade of the VR reflects Fitch's view that the bank has
failed due to the required extraordinary support, subordinated
obligations being subject to bail-in and its resolution resulting
in the transfer of the bulk of its assets and liabilities.  Fitch
believes that in the absence of these measures the bank would not
have been viable.

The downgrade of Banif's Lower Tier 2 subordinated debt ratings
to 'C' from 'CCC' reflects Fitch's assumption that recoveries
following the resolution of the entity are unlikely to be better
than average, given the limited amount of assets remaining at the

Fitch's decision to withdraw the VR, subordinated debt,
preference shares and recovery ratings reflects limited
information available following its reorganization.  Accordingly,
Fitch will no longer provide ratings or analytical coverage for


Not applicable

The rating actions are:

  Long-term IDR: withdrawn at 'B-'/Stable
  Short-term IDR: withdrawn at 'B'
  Viability Rating: downgraded to 'f' from 'b-' and withdrawn
  Support Rating: withdrawn at '5'
  Support Rating Floor: withdrawn at 'No Floor'
  Lower Tier 2 subordinated debt: downgraded to 'C' from 'CCC'
  and withdrawn; 'RR5' withdrawn
  Preference shares: withdrawn at 'C'/'RR6'

CARCADE LLC: Fitch Puts 'BB-' IDR on Rating Watch Negative
Fitch Ratings has placed Russian leasing company Carcade LLC on
Rating Watch Negative (RWN), following its recent announcement
that its current owners have agreed to sell the company to the
shareholders of Russia-based Forus Bank.


The RWN reflects potential changes in Carcade's strategy, risk
appetite, balance sheet structure, financial metrics and possible
contingent risks arising from other assets of the new owners,
including Forus Bank, following the change in ownership.

Fitch's previous rating action was on 11 December when the agency
affirmed Carcade at 'BB-' with a Negative Outlook, reflecting the
company's sound liquidity and solid solvency.  The Negative
Outlook reflected moderate deterioration of asset quality and
financial performance, as well as potential further pressure on
metrics from a difficult operating environment, including in the
core car/SME segments.


The ratings could be downgraded if Fitch concludes that the
company's strategy, risk appetite balance sheet structure and/or
financial metrics are likely to significantly weaken following
the ownership change, or if the company becomes significantly
exposed to related parties, non-core assets or other significant
contingent risks arising from the other assets of the new owners.

In line with other privately-owned Russian leasing companies, the
company could also be downgraded if (i) the weaker operating
environment translates into significant deterioration of
financial metrics; or (ii) prospects for Russia's economy weaken
further beyond Fitch's current expectations.

The ratings could be affirmed if Fitch concludes that the change
in ownership is broadly neutral to the company's credit profile,
the Russian economy performs better than currently expected and
Carcade's performance remains sound.

The rating actions are:

  Long-term foreign and local currency Issuer Default Ratings
   (IDRs): 'BB-', placed on RWN

  Short-term foreign-currency IDR: affirmed at 'B'

  National Long-term Rating: 'A+(rus)', placed on RWN

  Senior unsecured debt: 'BB-'/'A+(rus)', placed on RWN

EVRAZ GROUP: Fitch Assigns 'BB-' Rating to USD750MM Unsec. Notes
Fitch Ratings has assigned Evraz Group S.A.'s USD750 million
8.25% unsecured notes due in 2021 a final 'BB-' senior unsecured
rating.  The rating is in line with Evraz's Long-term Issuer
Default Rating of 'BB-'/Stable.

The bonds rank pari passu with existing senior unsecured debt and
include limitations on additional indebtedness (subject to
consolidated debt/EBITDA being less than 3.5x).  Simultaneously
with the bond issue, Evraz has tendered its 2017/2018 existing
bonds, using USD550 million to reduce the outstanding amount
across all three series.  The remaining funds are held in reserve
to meet other debt maturities.

The assignment of the final rating follows the receipt of
documents conforming to the information previously received.  The
final rating is the same as the expected rating assigned on
Dec. 4, 2015.

Fitch last affirmed Evraz in September 2015, post-1H15 results
publication, reflecting our expectation that Evraz will continue
to generate positive free cash flow (FCF) through the steel
market cycle.  Despite challenging market conditions, Evraz's
financial performance remained strong (USD922 million EBITDA, 19%
EBITDA margin). Fitch expects this trend to continue in 2H15,
assisted by the favorable foreign exchange impact on rouble-
denominated costs.

Fitch expects that the company will continue using a significant
portion of its FCF for further debt reduction.  Funds from
operations (FFO) adjusted gross leverage was reduced to 3.5x in
2014 from 5.2x in 2013.  Despite the expectation of further
absolute debt reduction in 2015 the company's FFO gross leverage
will increase to 3.9x due to a drop in EBITDA in the current
difficult market.  Thereafter, leverage metrics should show a
downward trend but will remain higher than its main Russian


Rouble Devaluation Boosts Earnings

Difficult market conditions impacted Evraz's financial
performance in 1H15 (15% decrease in EBITDA yoy due to 28% fall
in revenues). However, EBITDA margin in 1H15 rose to 19% (+3
points yoy), assisted by favorable foreign exchange impact on
rouble-denominated costs.  Overall costs decreased 31% yoy to
USD1.6 billion, mostly due to RUB/UAH devaluation but also
because of cost efficiency measures.  Fitch expects this trend to
continue in 2H15, resulting in USD1.8 billion EBITDA and USD650
million-USD700 million FCF.  Fitch expects that the company will
use a significant portion of this (USD350 million- USD400
million) for further debt reduction.

Mixed Outlook for Key End-Markets

Evraz's key domestic Russian end-markets are construction (34% of
1H15 production volumes) and railway products (8%).  Around 50%
of Russian production is exported in the form of semi-finished
products.  The near-term outlook for the Russian construction
market is weak, with demand forecasted to have fallen 15% yoy in
2015.  Actual Evraz volumes as of 1H15 supplied to the
construction market saw a 10% decline.  Demand for railway
products was also negatively impacted (-31%) following a drop in
demand from Russian railcars producers and slower rail sales to
CIS countries (ex. Russia).  Demand for rails in Russia was
stable, with only a 5% yoy decline, supported by steady demand
for maintenance from Russian Railways.

In contrast, demand for railway products in North America remains
robust.  Among other North American markets the order book for
large diameter energy pipes remains solid, while -- in line with
its competitors -- Evraz's OCTG sales continue to suffer from an
inventory overhang in the market and a substantial reduction in
capex by E&P companies.

Challenging Price Environment

The significant decline since 3Q14 in steel input costs (iron
ore, coking coal and energy prices) and more evidence of
deteriorating demand from China have put steel prices under
pressure globally. Separately, the negative outlook for the
Russian economy (sanctions, oil prices, etc) has triggered a
steep depreciation of the rouble, hurting domestic steel
products' prices in dollar terms (prices of Evraz's domestic
finished products dropped 24% yoy on average in 1H15).  Fitch
expects this dynamic to continue in 2H15 (in line with 1H15)
despite higher price inflation as a result of the weaker rouble.

Raspadskaya Ratings Linked to Evraz

Stronger ties between Evraz plc and Raspadskaya developed after
Evraz increased ownership in the subsidiary to 82% in January
2013.  The companies have since merged several support
departments, such as treasury, logistics and other operations to
increase synergies.  Evraz also refinanced all of Raspadskaya's
bank debt in 3Q13.  Evraz remains a top-three offtaker for
Raspadskaya, which plays a crucial part in Evraz's integration
into coal.  Despite these factors a one-notch differential
remains appropriate and reflects the absence of formal downstream
corporate guarantees for Raspadskaya's debt from Evraz.

High Raw Material Self-Sufficiency

Evraz Group benefits from high self-sufficiency in iron ore and
coking coal, including supplies of coal from its subsidiary
Raspadskaya.  Consequently, it is better placed across the steel
market cycle to control the cost base of its upstream operations
than less integrated Russian and international steel peers.  The
cash cost of slab production at Evraz's Russian steel mills is
estimated to have fallen by around 50% in absolute terms since
2012, reflecting a combination of operating cost efficiencies and
the fall in the value of the rouble, which have enabled the
company to maintain full plant capacity utilization.

Corporate Governance

Fitch regards Evraz's corporate governance as reasonable compared
with its Russian peer group, but Fitch continues to notch down
the rating by two levels relative to international peers.  This
notching-down factors in not only our view of company-specific
corporate governance practices but also the higher-than-average
systemic risks associated with the Russian business and
jurisdictional environment.


Fitch's key assumptions for the rating case of the issuer

   -- USD/RUB exchange rate: 63 in 2015, 60 in 2016 and 2017
   -- Slight decrease in steel sales volumes in 2015 (-2.6%),
      progressive recovery thereafter (1% p.a. in 2016 and 2.4%
      in 2017 and 2018)
   -- Steep decrease in coal sales volume in 2015 (-8%), steady
      growth thereafter (2% p.a. in 2016-2018)
   -- Sharp decrease in prices of steel products and coal in 2015
      (-22% for steel and -13% for coal), steady increase
   -- USD587 mil. capex in 2015, USD600 mil. each in 2016 and
   -- No dividends payments over the next 3 years or share


Evraz plc/ Evraz Group SA

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

   -- Further absolute debt reduction with FCF;
   -- FFO gross leverage moving sustainably below 3.0x
   -- FFO-adjusted net leverage sustained below 2.5x (2014: 2.9x)
   -- Sustained positive FCF
   -- Operational performance in Russia remaining within
      expectations, including the Russian construction
      market declining 10% in 2015 and being flat in 2016

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

   -- FFO-adjusted gross leverage above 4.0x by end-2016 or above
      3.5x over a sustained period
   -- FFO-adjusted net leverage sustained above 3.0x
   -- Persistently negative FCF
   -- Failure to extend debt maturities falling due in 2017 and

OAO Raspadskaya

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

   -- Stronger operational and legal ties with Evraz, including a
      corporate guarantee of Raspadskaya's debt, which could lead
      to the equalization of the companies' ratings.

   -- A positive rating action on Evraz plc, which could lead to
      a corresponding rating action on Raspadskaya.

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

   -- Evidence of weakening operational and legal ties between
      Evraz and Raspadskaya

   -- A negative rating action on Evraz plc, which could lead to
      a corresponding rating action on Raspadskaya.


The refinancing of USD750 million of the company's 2015-2018 debt
maturities with proceeds from the new issue has rebalanced the
company's overall maturity profile.  Fitch believes that the
company is in a position to service all of its mandatory
repayments until 2017 out of FCF, cash and an available undrawn
revolving credit facility.

At end-1H15, Evraz had USD996 million unrestricted cash, USD272
million undrawn committed bank facilities and strong FCF
generation.  Fitch expects the company to generate about USD890
million FCF for 2H15 and 2016.


Evraz Group SA

   -- Long-term foreign currency IDR: 'BB-'/ Stable Outlook
   -- Short-term foreign currency IDR: 'B'
   -- Senior unsecured rating: 'BB-'

Evraz plc

   -- Long-term foreign currency IDR: 'BB-'/ Stable Outlook
   -- Short-term foreign currency IDR: 'B'

OAO Raspadskaya

   -- Long-term foreign currency IDR: 'B+'/ Stable Outlook
   -- Short-term foreign currency IDR: 'B'
   -- Long-term local currency IDR: 'B+'/ Stable Outlook
   -- Senior unsecured rating: 'B+'/ RR4
   -- National long-term rating: 'A(rus)'/ Stable Outlook

METINVEST BV: To Propose U.K. Scheme of Arrangement
Katie Linsell at Bloomberg News reports that Metinvest BV, the
steelmaker controlled by Ukrainian billionaire Rinat Akhmetov,
said it issued a practice statement letter to propose a U.K. debt
restructuring, known as a scheme of arrangement.

According to Bloomberg, Metinvest said the scheme provides for a
moratorium, which will prevent bondholders from taking
enforcement action and is meant to give the company time to
negotiate with investors.  The letter was sent to holders of
US$1.1 billion of bonds maturing in 2016, 2017 and 2018,
Bloomberg discloses.

Metinvest, Bloomberg says, is seeking to restructure more than
US$3 billion of debt after shelling and mortar attacks hit almost
all of its facilities in eastern Ukraine, hurting production and
reducing its access to international capital markets.

Metinvest BV is Ukraine's largest steelmaker.


ABENGOA SA: Inks Agreement with Creditor Banks on Credit Line
Paul Day at Reuters reports that Abengoa SA signed an agreement
with its creditor banks on Dec. 24 for a EUR106 million (US$116.1
million) credit line to help avert what would be Spain's biggest-
ever bankruptcy.

The loan will be used for general corporate necessities, Abengoa,
as cited by Reuters, said in a statement to the stock market
regulator.  The company said it is using some shares held in the
affiliate Abengoa Yield as collateral for the loan, Reuters

As reported by the Troubled Company Reporter-Europe on Nov. 30,
2015, Bloomberg News related that Abengoa on Nov. 27 said it had
formally applied to a court in Seville for preliminary creditor
protection.  Under Spanish bankruptcy law, the company may now
suspend payments and keep negotiating with lenders for a maximum
of four months, Bloomberg disclosed.  If Abengoa hasn't reached a
deal by the end of March, it will have to file for full-blown
creditor protection, Bloomberg noted.

Abengoa SA is a Spanish renewable-energy company.

                        *       *       *

As reported by the Troubled Company Reporter-Europe on Dec. 21,
2015, Standard & Poor's Ratings Services lowered to 'SD'
(selective default) from 'CCC-' its long-term corporate credit
rating on Spanish engineering and construction company Abengoa
S.A.  S&P also lowered the short-term corporate credit rating on
Abengoa to 'SD' from 'C'.  S&P said the downgrade reflects
Abengoa's failure to pay scheduled maturities under its EUR750
million Euro-Commercial Paper Program.


DOMETIC GROUP: S&P Raises CCR to 'BB-'; Outlook Positive
Standard & Poor's Ratings Services said that it had raised its
long-term corporate credit rating on Sweden-based leisure product
manufacturer Dometic Group AB to 'BB-' from 'B'.  The outlook is

At the same time, S&P removed the rating from CreditWatch, where
it placed it with positive implications on Nov. 5, 2015.

S&P also assigned a 'BB-' issue rating to Dometic's new SEK5.8
billion senior unsecured bank facilities.  The recovery rating is
'3', indicating S&P's expectation of recovery in the lower half
of the 50%-70% range.

The upgrade follows Dometic's successful IPO on the Stockholm
Stock Exchange on Nov. 25, 2015, which brought in Swedish krona
(SEK) 4.5 billion (about EUR500 million) and subsequent debt

Dometic used some of the proceeds to repay EUR314 million of
payment-in-kind notes, resulting in a much improved financial
risk profile since its credit metrics strengthened following the
debt reduction.  In addition, private-equity group EQT Partners,
which S&P regards as a financial sponsor, has reduced its
shareholding in Dometic to approximately 57%.  As a result, S&P
considers that Dometic's financial risk profile has improved to
significant from highly leveraged.

Specifically, S&P has revised its assessment of Dometic's
financial policy to financial sponsor (FS)-4 from FS-6 because
the company's leverage is consistent with a significant financial
risk profile, and S&P perceives the risk of releveraging as low.
The reduction of the financial sponsor's shareholding and
Dometic's repayment of debt should, in S&P's opinion, indicate
that the company will likely pursue a more moderate and
predictable financial policy, particularly with respect to
shareholder returns.  This is underlined by the company's stated
financial policy, in which it targets net debt to EBITDA of about
2x and dividends of at least 40% of the previous year's net

The business risk profile is still constrained by the group's
moderate size by global standards and high concentration in
mature markets: About 85% of revenue stems from Europe, the
Middle East, Africa, and the Americas.  In addition, Dometic's
end markets are cyclical and reliant on consumer spending, which
is subject to general economic conditions.

These constraints are mitigated by Dometic's leading positions in
its niche markets, strong relationships with original equipment
manufacturers, and its comprehensive product offering, which
provides high barriers to entry and solid pricing power.  The
group also benefits from a significant share of more stable
aftermarket sales.  These factors translate into solid operating
margins and cash flow, which are key factors supporting the
rating and are reflected in the group's fair business risk

The significant financial risk profile reflects S&P's view that
the company's Standard & Poor's-adjusted ratio of funds from
operations (FFO) to debt would be about 20% and that adjusted
debt to EBITDA (including S&P's adjustment for operating lease
obligations) would be below 3x for the fiscal year ending Dec.
31, 2015, before improving toward 30% and 2.5x, respectively, by
year-end 2016.

The positive outlook reflects S&P's expectation that Dometic will
build a track record of a more prudent financial policy following
the overhaul of its financial structure.

S&P could upgrade Dometic if it performs at least in line with
S&P's base case and demonstrates financial management that allows
S&P to to remove the negative notch under its comparable rating
analysis.  S&P expects Standard & Poor's-adjusted FFO to debt to
remain above 25% on a weighted-average basis.

S&P could lower the rating if an unexpectedly sharp economic
downturn in Europe or the U.S. were to occur, or if operating
issues reappeared, squeezing the EBITDA margin. FFO to debt below
20% on a weighted-average basis could lead to a downgrade, as
could large debt-funded acquisitions, if in S&P's view, they
might weaken the group's metrics without prospects for a rapid


KYIV CITY: S&P Raises ICR to 'CCC+', Outlook Stable
Standard & Poor's Ratings Services raised its long-term foreign
and local currency issuer credit ratings on Kyiv to 'CCC+' from
'D'.  At the same time, S&P raised its issue ratings on Kyiv's
two domestic bonds to 'CCC+' from 'D'.  S&P also withdrew its 'D'
issue ratings on the city's two dollar-denominated Eurobonds.
The outlook is stable.

As a "sovereign rating" (as defined in EU CRA Regulation
1060/2009 "EU CRA Regulation"), the ratings on the city of Kyiv
are subject to certain publication restrictions set out in Art 8a
of the EU CRA Regulation, including publication in accordance
with a pre-established calendar.  Under the EU CRA Regulation,
deviations from the announced calendar are allowed only in
limited circumstances and must be accompanied by a detailed
explanation of the reasons for the deviation.  In Kyiv's case,
the deviation was prompted by the completion of what, under S&P's
criteria, it is treating as a distressed debt restructuring.


The rating action follows the completion of Kyiv's distressed
debt exchange on Dec. 22, 2015.  The raising of the ratings to
'CCC+' reflects stronger budgetary performance on the back of a
strong recovery of tax revenues and a lower debt burden following
debt restructuring.

According to S&P's criteria, a 'CCC+' rating means that the
issuer is currently vulnerable and is dependent upon favorable
business, financial, and economic conditions to meet its
financial commitments.  The rating also indicates that the
issuer's financial commitments appear to be unsustainable in the
long term, although the issuer may not face a near-term (within
12 months) credit or payment crisis.

As a result of the debt exchange, Kyiv has restructured
$550 million of Eurobonds: the bonds' principal was haircut by
25%, interest agreed at 7.75%, and maturities extended to 2019
and 2020.  The new bond will be issued by Ukraine's Ministry of
Finance, which will be liable for its repayment.  At the end of
September 2015, the city also restructured domestic bonds
totaling Ukrainian hryvnia (UAH) 4,163 million ($180 million) by
extending their maturities by one year.

The long-term rating on Kyiv is equivalent to S&P's 'ccc+'
assessment of the city's stand-alone credit profile.

S&P views Ukraine's institutional framework for local governments
as very volatile and underfunded.  This continues to limit the
city's budgetary flexibility, which S&P assess as very weak.
S&P's view of Kyiv's very weak financial management and weak
liquidity, as well as high contingent liabilities, also
constrains the ratings.  S&P views the city's economy as weak
although diversified.  The ratings are supported by S&P's
assessment of the city's average budgetary performance and
moderate debt burden.

"We have revised our assessment of the city's budgetary
performance to average from weak, on the back of a strong
recovery of tax and nontax revenues.  In our 2015-2017 forecast
period, we expect the operating balance to average almost 10% of
operating revenues compared with 6% on average in 2012-2014.
This is due to high revenue growth, fueled by high inflation and
allocation of some additional taxes to the city budget from the
sovereign level (corporate-profit tax, excise, and property tax).
We expect central government grants to continue supporting the
city.  At the same time, spending growth will likely lag behind
that of revenues. Given a relatively high operating balance and
very modest capital spending, we expect the city to post a
surplus after capital accounts of about 3% of total spending on
average in 2015-2017, compared with a deficit of 2.5% on average
in 2012-2014.  We note, however, that budgetary performance will
remain volatile and might weaken in the medium term, since
spending will likely catch up with revenues and the central
government is currently discussing a tax reform proposal that
might change the bases and rates of taxes that contribute to
Kyiv's budget," S&P said.

S&P has also revised its assessment of Kyiv's debt burden to
moderate from high.  Under S&P's base-case scenario, Kyiv's tax-
supported debt will decline gradually and make up 38% of
operating revenues by the end of 2017.  Volatility risk has
materialized already, with a depreciation of the hryvnia by 3x,
and S&P now expects the debt burden to stabilize in the medium
term.  Although the issuer of the restructured Eurobonds will be
the Ukrainian Ministry of Finance, S&P understands that the city
and the central government have agreed that this debt will be
mirrored by an intergovernmental debt liability of the city to
the central government.  S&P includes this liability in the
city's debt burden.  S&P's calculation of tax-supported debt also
incorporates debt at Kyiv's government-related entities (GREs),
including guaranteed loans from multilateral lending

The city's fiscal flexibility remains severely constrained
because of very limited discretion over revenue sources and
spending policies, and S&P's view of Ukraine's very volatile and
underfunded public finance system.  The city's substantial
investment requirements continue to restrict its spending

S&P assess the city's financial management as very weak.  This
assessment implies only emerging long-term planning, as well as
weak liquidity management, and weak oversight over the city's

Kyiv's economy is weak in an international context.  The city's
economy is diversified and is Ukraine's wealthiest, although
wealth levels are low in a global context (national GDP per
capita was $2,800 in 2014).  The city's personal income levels
are likely to remain twice as high as the national average, by
S&P's estimates.  S&P also thinks the unemployment rate will
continue to be the lowest in Ukraine.

S&P assess Kyiv's contingent liabilities as high, due to
accumulated payables at the level of the city's GREs.


S&P regards Kyiv's liquidity position as weak.  Although the city
has accumulated some cash reserves in 2015, the cash position
will likely remain weak and volatile.  S&P believes that Kyiv's
access to external liquidity will remain uncertain and the city
will be continuously exposed to material refinancing risks.

S&P estimates that Kyiv's average cash position over the past 12
months stood at UAH2 billion, which, together with the surplus
after capital accounts, will cover about 56% of the city's debt
service coming due over the next 12 months.

S&P expects debt service to stay high, at about 15%-17% of
operating revenues in 2016-2017.  The city faces bullet
repayments on domestic bonds in October-December 2016, with debt
service expected to hit about 17% of expected operating revenues
in 2016. In S&P's current base-case scenario, it assumes these
bonds will be refinanced similarly to those refinanced in 2014.

S&P regards Kyiv's access to external liquidity as uncertain.
The weaknesses of Ukraine's banking sector are reflected in S&P's
Banking Industry Country Risk Assessment (BICRA), which
classifies Ukraine in group '10'.  S&P's BICRA ranks risk
relating to banking systems on a scale of '1' to '10', with '1'
being the lowest risk and '10' being the highest risk.


The stable outlook assumes that, over the next 12 months, Kyiv's
average budgetary performance will counterbalance its weak
liquidity.  The outlook also factors in S&P's base-case
expectation that that the city will secure refinancing of its
domestic bonds due in October to December 2016.

S&P might lower the ratings within the next 12 months if, ahead
of a domestic bond maturity, the city faces challenges in
implementing its refinancing or repayment plans for domestic

S&P could consider a positive rating action if the city's
refinancing risks decreased materially, supported by consistently
strong budgetary performance.

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

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

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

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


                                 To                       From
Kyiv (City of)
Issuer credit rating
  Foreign and Local Currency     CCC+/Stable/--           D/--/--
Senior Unsecured
  Foreign Currency               D                        D
  Local Currency                 CCC+                     D

Kyiv Finance PLC
Senior Unsecured
  Foreign Currency               D                        D

Ratings Subsequently Withdrawn

Kyiv (City of)
Senior Unsecured
  Foreign Currency               NR                       D

Kyiv Finance PLC
Senior Unsecured
  Foreign Currency               NR                       D

NR--Not rated

U N I T E D   K I N G D O M

B RILEY & SONS: Falls Into Administration, Cuts 131 Jobs
Oscar Rousseau at reports that Burnley-based
abattoir, B Riley & Sons, has been forced to close down after
experiencing 'significant cash flow difficulties' resulting in
131 staff have being made redundant just before Christmas.

Administrators from KPMG were appointed on December 16, 2015 for
B Riley & Sons and the notice of administration has been filed on
the London Gazette, according to

The report notes that the business ceased trading in early
December 2015, and upon appointment of the KPMG administrators,
all 131 employees were made redundant just eight days before

The report relays that Paul Flint, associate partner at KPMG and
joint administrator, said: "We are assisting the employees
through this difficult time with making claims to the Redundancy
Payments Office for their wages and other associated redundancy

The report discloses that Mr. Flint added: "The business is one
of the largest independent abattoirs in the North of England,
holding BRC accreditation focusing primarily on sheep throughput
for the Halal wholesale market in the UK and EU, but also having
beef capabilities.

"The premises consist of an abattoir facility which was extended
and fully renovated in October 2014 to enable throughput to
increase to 12,000 sheep per week; a farm comprising three
freehold dwellings; a butchers shop; and an additional 60 acres
of agricultural land. We are now seeking a buyer for the business
and its assets, and would urge any interested parties to contact
the joint administrators as soon as possible," Mr. Flint added.

B Riley & Sons is one of the largest abattoirs in the North of
England working within halal beef and lamb verticals, as well as
meat processing.

CAPARO INDUSTRIES: Cuts 33 Jobs at Caparo Precision
Pricewaterhousecoopers gaves updates on Caparo Industries plc and
its subsidiaries -- collectively the "Caparo Industries Group" or
"CIP" -- in administration.

Since their appointment, PwC's administrators have been working
closely with CIP, its customers, suppliers, employees and their
representatives including three trade unions, according to

"It is with regret that we now announce 33 redundancies with
immediate effect at the Ductile business unit of Caparo Precision
Strip Limited, based in Willenhall."

The reports relays that the administrators have confirmed that
all staff affected will be paid for their work and thank them for
the support, service and co-operation that they have provided to
CIP, both before and during the administration.

Matthew Hammond, PwC partner and lead administrator, said:

"After saving a total of 1,111 jobs at Caparo, it is with regret
that we have made these decisions today. Despite sustained
efforts to find a solution, including approaching key
stakeholders in a bid to preserve funding, it was not possible to
find a buyer for the business.

"Without a buyer or the ability to continue to trade
economically, we were forced to take the difficult decision to
close the unit with immediate effect. Those staff affected by
today's announcements were consulted and kept fully informed
throughout the entire process.

"We thank those former members of staff for their service to CIP;
we will work closely with them, their representatives and
agencies to provide support and ensure that their redundancy and
other claims are handled efficiently at this difficult time. "We
will also work closely with other bodies who naturally will want
to assist at this time with regard to future employment

CLAVIS RMBS 2006-01: Fitch Affirms 'BBsf' Rating on Cl. B2a Notes
Fitch Ratings has upgraded two and affirmed 16 tranches of the
Clavis RMBS series.

The Clavis transactions are securitizations of UK non-conforming
loans, originated by GMAC-RFC Limited.


Steady Build-up of Credit Enhancement

The robust performance of both transactions has led to pro-rata
amortization of the notes.  The reserve fund for Clavis 2006 has
amortized to its floor level, while the reserve fund of Clavis
2007 is no longer allowed to amortize as a result of a breach of
the cumulative repossession trigger (set at 2.25% of the initial
portfolio balance).  As a result, credit enhancement (CE) across
the series has continued to build up steadily.  In particular,
Fitch believes the build-up of CE on the M1 tranches of Clavis
2006 can now sustain higher ratings stresses, resulting in the

Solid Performance

The portfolios in both transactions were formed via positive
selection of GMAC-originated loans and are considered to be of
near-prime nature.  The better-than-average characteristics of
the underlying borrowers have contributed towards the robust
performance of the series as reflected in the affirmations.  As
of September 2015 the volume of loans in arrears by more than
three months remained between 3.9% (Clavis 2006) and 6.3% (Clavis
2007) of their respective portfolio balances.  These levels
remain below the UK non-conforming average of 9.6%.

If CE continues to build up and performance remains solid the M2
and B notes of Clavis 2006 may be upgraded in the next 12 to 18
months, as reflected in today's Positive Outlooks.

Unhedged Interest Rate Risk

Unlike Clavis 2006, Clavis 2007 is not hedged against the basis
risk between the LIBOR-linked notes and BBR mortgages.  In its
analysis, Fitch stressed the excess spread to account for this
risk and found the CE available to the rated notes sufficient to
withstand the stresses.

Interest-only Concentration

The transactions have material concentration of interest-only
loans maturing within a three-year period during the lifetime of
the transaction.  As per its criteria, Fitch carried out a
sensitivity analysis assuming a 50% default probability for these
loans.  No rating action was deemed necessary as a result of the
interest-only loan concentration.  Nevertheless, Fitch will keep
monitoring this risk as the transactions continue to amortize.

Currency Swap Obligations

The affirmation of the currency swap ratings are based on Fitch's
view that the swap payment obligations rank pro rata and equally
with the referenced notes.  Consequently, the credit profiles of
the currency swap payment obligations are consistent with the
long-term rating on the referenced notes.


The transactions are backed by floating-interest-rate loans.  In
the current low interest rate environment, borrowers are
benefiting from low borrowing costs.  An increase in interest
rates could lead to performance deterioration of the underlying
assets and consequently downgrades of the notes if defaults and
associated losses exceed those of Fitch's stresses.

A change to the rating of the corresponding notes will likely
lead to an equal change in the rating of the SPV's currency swap
obligations.  The rating sensitivity will primarily be driven by
the rating analysis applicable to the corresponding note.  The
rating of the SPV's currency swap obligations will be withdrawn
if the currency swap agreement is terminated due to non-
performance by the swap counterparty or a non-credit related


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


Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions.  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

Fitch did not undertake a review of the information provided
about the underlying asset pools ahead of the transactions'
initial closing.  The subsequent performance of the transactions
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.


   -- Loan-by-loan data provided by Bluestone (Bluestone Group
      acquired Basinghall Finance in December 2014, and
      subsequently renamed the business as Bluestone Mortgages)
      for both deals with a cut-off date of Aug. 31, 2015,

   -- Transaction reporting provided Bluestone for both deals
      since close and until September 2015



EMEA RMBS Surveillance Model.

The rating actions are:

Clavis Securities plc Series 2006-01:

  Class A3a (ISIN XS0255457706): affirmed at 'AAAsf'; Outlook
  Class A3b (ISIN XS0255438748): affirmed at 'AAAsf'; Outlook
  Class M1a (ISIN XS0255424441): upgraded to 'AA+sf'; from
   'AAsf'; off Rating Watch Positive (RWP); Outlook Stable
  Class M1b (ISIN XS0255439043): upgraded to 'AA+sf'; from
   'AAsf'; off RWP; Outlook Stable
  Class M2a (ISIN XS0255425414): affirmed at 'Asf'; Off RWP;
   Outlook Positive
  Class B1a (ISIN XS0255425927); affirmed at 'BBBsf'; Off RWP;
   Outlook Positive
  Class B1b (ISIN XS0255440728); affirmed at 'BBBsf'; Off RWP;
   Outlook Positive
  Class B2a (ISIN XS0255426818); affirmed at 'BBsf'; Off RWP;
   Outlook Stable

Clavis Securities plc Series 2007-01:

  Class A3a (ISIN XS0302268361): affirmed at 'AAAsf'; Outlook
  Class A3b (ISIN XS0302269096): affirmed at 'AAAsf'; Outlook
  Class A3b currency swap: affirmed at 'AAAsf'; Outlook Stable
  Class AZa (ISIN XS0302268445): affirmed at 'AAAsf'; Outlook
  Class M1a (ISIN XS0302269682): affirmed at 'AAsf'; off RWP;
   Outlook Stable
  Class M1b (ISIN XS0302270854): affirmed at 'AAsf'; off RWP;
   Outlook Stable
  Class M2a (ISIN XS0302270185): affirmed at 'Asf'; off RWP;
   Outlook Stable
  Class M2b (ISIN XS0302271662): affirmed at 'Asf'; off RWP;
   Outlook Stable
  Class M2b currency swap: affirmed at 'Asf'; off RWP; Outlook
  Class B1a (ISIN XS0302270268): affirmed at 'BBBsf'; off RWP;
   Outlook Stable
  Class B1b (ISIN XS0302271829): affirmed at 'BBBsf'; off RWP;
   Outlook Stable
  Class B1b currency swap: affirmed at 'BBBsf'; off RWP; Outlook
  Class B2 (ISIN XS0302270342): affirmed at 'BBsf'; off RWP;
   Outlook Stable

COLCHESTER WINTER: Goes Into Liquidation, Closes Down
----------------------------------------------------- reports that a winter wonderland attraction has been
forced to close down due to the unseasonably mild weather.

Colchester Winter Wonderland and Ice Rink opened 25 days ago but
has been unable to open on six of those days, according to

The report notes that about 5,000 people are thought to have
booked tickets to attend between now and January 3.

But attraction bosses Reflective Ice said it had become
financially impossible to continue operating, the report relays.

It comes as the chances of a white Christmas look slim with the
country bracing itself for Storm Eva after a period of unusually
mild temperatures, the report discloses.

The report notes that the company said it had to close due to
"unseasonably high temperatures and strong winds throughout
November and December".

Staff have begun dismantling the site which included fairground
attractions and festive stalls, the report relays.

The report notes that the statement said: "After taking legal
advice, Reflective Ice Ltd is going into liquidation and has
begun the process of appointing administrators.

"This decision has been taken with deep regret as it will have a
major impact on its staff, partners and customers.

"Reflective Ice Ltd sincerely thanks their staff, customers,
business partners and supporters.

"There has been a huge amount of support for the ice rink in
Colchester and on social media. This is a very sad day for
Reflective Ice Ltd."

GEMINI ECLIPSE 2006-3: S&P Lowers Ratings on 2 Note Classes to CC
Standard & Poor's Ratings Services lowered to 'CC (sf)' from
'CCC- (sf)' its credit ratings on GEMINI (ECLIPSE 2006-3) PLC's
class A and B notes.  At the same time, S&P has affirmed its
'D (sf)' ratings on the class C, D, and E notes.

On Dec. 10, 2015, the special servicer completed the sale of 23
of the remaining 24 properties securing GEMINI (ECLIPSE 2006-3),
with total net noteholder recoveries expected to be approximately
GBP170.6 million.  Additionally, the special servicer expects
approximately GBP10.9 million of recoveries for the remaining
property in January 2016.

S&P's ratings in GEMINI (ECLIPSE 2006-3) address the timely
payment of interest, payable quarterly in arrears, and payment of
principal not later than the legal final maturity date in July

With total expected recoveries of approximately GBP180 million,
this will be only enough to partially repay the class A notes.

S&P has therefore lowered to 'CC (sf)' from 'CCC- (sf)' its
ratings on the class A and B notes.  S&P rates an issue 'CC' when
it expects default to be a virtual certainty.

At the same time, S&P has affirmed its 'D (sf)' ratings on the
class C, D, and E notes because they have experienced interest
shortfalls and S&P expects them to experience principal losses.

GEMINI (ECLIPSE 2006-3) is a single-borrower secured-loan
transaction originally backed by 36 properties in England,
Scotland, and Wales.  The transaction closed in 2006.


GBP918.862 mil commercial mortgage-backed floating-rate notes
Class            Identifier         To            From
A                XS0273576107       CC (sf)       CCC- (sf)
B                XS0273576289       CC (sf)       CCC- (sf)
C                XS0273576446       D (sf)        D (sf)
D                XS0273576792       D (sf)        D (sf)
E                XS0273576958       D (sf)        D (sf)

HERCULES ECLIPSE 2006-4: S&P Cuts Ratings on 2 Notes to CCC
Standard & Poor's Ratings Services lowered its credit ratings on
HERCULES (ECLIPSE 2006-4) PLC's class C, D, and E notes.

On the October 2015 interest payment date (IPD), the class D and
E notes experienced interest shortfalls.  The transaction
continues to experience cash flow disruptions due to a
combination of spread compression between the loan and the notes,
as well as high prior ranking transaction costs which, together,
have resulted in insufficient funds available to meet all
interest payments due on the notes.

As indicated in the cash manager reports over recent IPDs, the
transaction has become more exposed to periodic spikes in prior
ranking transaction costs.  S&P's analysis indicates that the
transaction is particularly vulnerable to periodic spikes in
servicing-related fees payable as and when a loan is being worked

With the risk of higher work-out fees, together with further
principal repayments, and the subsequent spread compression
between the loan and the notes, S&P's analysis indicates that it
may become harder for the transaction to repay existing
shortfalls.  Furthermore, S&P also believes that the class C
notes have become more vulnerable to cash flow disruptions.

S&P's ratings on HERCULES (ECLIPSE 2006-4)'s notes address the
timely payment of interest and repayment of principal not later
than the legal maturity date in October 2018.

Although S&P considers the available credit enhancement for the
class C notes to be sufficient to mitigate the risk of losses
from the underlying loans in higher rating stress scenarios, S&P
believes that this class of notes has become vulnerable to
interest shortfalls as a result of periodic increases in senior
costs, in particular, servicing-related fees.  S&P has therefore
lowered to 'B-(sf)' from 'B+ (sf)' its rating on the class C

The class D notes have experienced interest shortfalls.  The
shortfall is likely to continue in future quarters, in S&P's
opinion.  S&P has therefore lowered its rating to 'CCC (sf)' from
'B- (sf)' in line with its criteria for assigning 'CCC' category
ratings to reflect the higher risk of payment default.  S&P
believes this class of notes faces at least a one-in-two
likelihood of default.

The class E notes also experienced cash flow disruptions on the
October 2015 IPD and will likely experience principal losses, in
S&P's view.  S&P has therefore lowered to 'CCC (sf)' from
'B- (sf)' its rating on the class E notes.  S&P believes this
class of notes faces at least a one-in-two likelihood of default.

HERCULES (ECLIPSE 2006-4) is a true sale transaction that closed
in December 2006 and was backed by a pool of seven loans secured
against U.K. commercial properties.  Four loans have repaid since
closing and the outstanding note balance has reduced to
GBP302.9 million, from GBP814.9 million at closing.


GBP814.95 mil commercial mortgage-backed floating-rate notes
Class             Identifier         To         From
C                 XS0276412375       B- (sf)    B+ (sf)
D                 XS0276413183       CCC (sf)   B- (sf)
E                 XS0276413340       CCC (sf)   B- (sf)

LITT CORPORATION: Falls Into Liquidation
---------------------------------------- reports that Litt Corporation, which was
originally set up in 1989 as the parent company of the UK's first
commercial Asian radio station has gone into liquidation.

On November 27, 2015, the digital radio service provider, Switch
Digital's petition to wind-up Litt Corporation was approved by a
Manchester court, according to  On December 11,
2015, the "wind-up" message was relayed to Companies House, the
report relays.

According to DueDil, Litt Corporation Ltd was registered on 14th
March 1989 with its registered office in Middlesex, the report
notes.  The business has a status listed as "Active" and it
currently has two directors, the report relays.  The company's
first director was Dr Avtar Lit.  They have one subsidiary,
Sunrise Radio Limited.

A "wind-up" petition can be made against a company, who is unable
to pay debts of more than GBP750, the report notes.

Litt Corporation has no direct link to Sunrise Radio (Sunrise
Radio London Limited) on 963/972AM in Greater London.

SANDS HERITAGE: Creditors Approve Company Voluntary Arrangement
BBC News reports that creditors have given Sands Heritage, the
operator of Margate's Dreamland theme park, five years to repay
nearly GBP3 million of debts.

The company announced earlier this month it was seeking a company
voluntary arrangement (CVA) to stop it going into administration,
BBC recounts.

The seaside attraction reopened in June but its Scenic Railway,
thought to be Britain's oldest rollercoaster, did not open until
Oct. 15, BBC discloses.

Creditors voted to accept the arrangement in Canterbury on
Dec. 23, BBC relates.

According to BBC, the deal will allow the theme park, which
features vintage rides, to remain open while Sands Heritage pays
back a proportion of the money it owes over the next five years.

VITA CAPITAL VI: S&P Assigns BB Rating on to Class A Notes
Standard & Poor's Ratings Services said that it has assigned its
'BB (sf)' issue credit rating to the U.S. dollar-denominated
class A notes to be issued by Vita Capital VI Ltd.  These notes
are sponsored by Swiss Reinsurance Co. Ltd. (Swiss Re), which is
the risk transfer counterparty.

The noteholders are exposed to extreme mortality events in
Australia, Canada, and the U.K. They are at risk from an increase
in age- and gender-weighted mortality rates that exceeds a
specified percentage of a reference mortality index value
specific to a given country, and over five calendar years.  These
mortality indices are constructed from information obtained from
The Australian Bureau of Statistics, Statistics Canada, and the
U.K. Office for National Statistics, or their successors.

The notes are collateralized by notes issued by the International
Bank for Reconstruction and Development (IBRD).  Should the IBRD
note be downgraded below 'AA-', the issuer will maintain cash or
money market funds as collateral.  S&P expects the money market
funds to be rated 'AAAm'.

S&P has based its issue credit rating on the lower of its 'bb'
implied risk factor on the mortality risk; S&P's long-term 'AAA'
issue credit rating on the International Bank for Reconstruction
and Development (IBRD) notes; S&P's assessment of the
creditworthiness of the account bank, the London branch of The
Bank of New York Mellon, whose parent is rated AA-/Stable/A-1+;
and the rating on Swiss Re (AA-/Stable/A-1+) as the risk premium

S&P's rating on the series 2015-1 class A notes addresses timely
payment of interest and repayment of the original principal
amount by the final scheduled maturity date of Jan. 8, 2021.  The
maturity may be extended up to Jan. 8, 2024.  In this case, the
interest payable on the notes will step down.

WESTWOOD YARNS: In Administration, 135 Jobs at Risk
Neil Atkinson at reports that Westwood Yarns is to
go into administration -- and there are fears for many of the 135

All of the staff have been called to a special meeting of the
carpet yarns firm this morning, amid fears for its future,
according to

It follows a letter sent to the workers saying that
administrators are about to be called in, the report notes.

And director Richard Collinge said it was "devastating" news.

The company is based at Washpit Mills in Holmfirth and has a
history going back well over a century.

Mr. Collinge and Mr. Timothy Kay took over the company in October
and said they had tried repeatedly to avoid the latest move, the
report discloses.

The report relays that Mr. Collinge said: "We saw the workers
yesterday and had to make the very hard decision to call in the

"It is devastating especially coming at this time of year. But we
have been told our trade credit insurance has been withdrawn and
without that our suppliers are not prepared to do business.

"We have been looking at various options including refinancing
the company but cannot find a solution.

"We are hoping that the administrators can come in with a plan to
enable the company to carry on. We have orders and we have work
in but the suppliers need the reassurance of the insurance to
cover their debts.

"I am so sorry to have to break the news to our staff, many of
whom have been here a long time. I cannot comment on what may
happen with the jobs until we have met with the administrators."

The report notes that the letter sent out to all the staff warns
that redundancies are possible.

It said: "Following the withdrawal of trade credit insurance, we
have been left with no alternative but to put Westwood Yarns into
administration. Administrators will be called to deal with the
issues as they see fit.

"The fate of the company has not been determined but it is
possible that redundancies may occur.

"Employee representatives will be appointed to deal with the
consultation process. We make this announcement with great regret
and with empathy to our workforce given the time of year."

* UK: Atradius Sees New Round of Retail Insolvencies in New Year
Retailers are holding out hopes for a last minute Christmas
shopping frenzy to keep them afloat throughout 2016, say retail
experts at trade credit insurer Atradius.

With more positive economic news on the horizon, improving
employment prospects, low inflation and a significant drop in the
cost of fuel, consumer confidence has been boosted to arguably
the highest level in a decade.  Against this backdrop,
Owen Bassett, senior risk underwriter at Atradius, observes that
conditions for a strong retail performance this Christmas should
be close to perfect -- however, he fears that instead there may
just be a perfect storm -- withshoppers still hungry for
bargains, discounting remains high leaving retailers facing
another difficult festive season.  The New Year could start
bleakly for some and a fresh wave of insolvencies could be around
the corner.

Mr. Bassett commented: "With consumer confidence riding high,
retailers might have hoped for improved customer spending in the
run up to Christmas.  However, so far, retail hasn't performed as
strongly as anticipated and it seems that the extra pound in
people's pocket has been spent on leisure activities such as
holidays, entertainment events and eating out.

"Retailers traditionally take upwards of 40% of their annual
profits between October and December so it is a crucial time of
year for them.  Those who went into the fourth quarter needing --
rather than wanting -- a strong performance could be looking at a
troubled future.  Experience tells us that when retailers need an
exceptional seasonal sales period and then hit financial
difficulty, we often see failures in the first quarter.  It is
not unusual in this sector to be loss-making during Q1 and with
the first payment of quarterly rent due in January it can be
difficult to survive after a poor Q4."

In a bid to pull in customers, we are now seeing heavy
discounting in stores but Atradius also warns that for many
Black Friday may prove to have a negative revenue impact in the
post-Christmas analysis after the hype failed to materialize on
the high street, causing real problems for retailers.

Mr. Bassett continued: "Last year, retailers felt that they gave
away too much with such heavy discounting leading to finer
margins and some retailers having to release profit warnings.
This year, the market was more measured having learned their
lesson the hard way last year.  Some didn't compete at all and
others reduced their offering.  However, for in-store retailers
the lack of a rush for bargains has left many with significant
stock to shift and, if sales cannot be achieved at normal price
before Christmas, retailers will be forced into discounts after
Christmas.  Last year the revenue impact from Black Friday was
felt immediately, this time the effect on margin erosion is
slower to show -- but will still be felt.

"Looking at the sector as a whole, while electrical, furniture
and DIY retailers have performed well this year, clothing
retailers -- particularly female fashion -- have struggled and
that pattern continues.  Certain sub sectors are benefiting from
pent-up demand.  After a long spell of 'tight belts', consumers
are no longer delaying spend on their homes and on items that are
overdue for replacement such as electrical appliances which only
have a limited lifespan."

"However, the story for high street fashion is not so positive
and despite continued demand, the outlook is mixed.  The female
fashion sector is now saturated with many similar businesses
competing for the same pound.  Those that cannot compete in terms
of operational efficiency or that don't continue to appeal to
consumers' tastes in fashion will find themselves in difficulty."
Trade credit insurance supports businesses in all sectors to
manage risk and to trade safely.


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  Go to 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,

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

This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
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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,
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                 * * * End of Transmission * * *