TCREUR_Public/160112.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, January 12, 2016, Vol. 16, No. 007


                            Headlines


B U L G A R I A

CHIMCO AD: Bids for Assets Sale Due by Jan. 19
KREMIKOVTZI AD: Steel Mill Assets Acquired by Fibank


D E N M A R K

ATLANTIC PETROLEUM: Misses Debt Repayment to Eik Bank


G E R M A N Y

VOLKSWAGEN AG: Gets Softer Reproach From EU Over Emission Scandal


G R E E C E

GREECE: Bail-Out Review Will Take Months, Eurogroup Chief Says
GREECE: Has Solid Lawmakers Support to Pass Pension Reform
GREECE: May Head for Collision With Lenders Over Pension Cuts


I R E L A N D

* IRELAND: Number of Corporate Insolvencies Drop 10% in 2015



P O L A N D

COGNOR SA: Moody's Assigns 'Caa2-PD/LD' to PDR Over Debt Buy Back


U N I T E D  K I N G D O M

ANGLO AMERICAN: Shareholder Opposes Tapping Investors for Cash
CAPARO INDUSTRIES: Turnaround Plan Scrapped Due to Disagreement
CHIPOTLE MEXICAN: Faces Investor Suit Over E. Coli Outbreak
FIRST QUANTUM: Moody's Cuts CFR to Caa1; Sr. Unsec. Notes to Caa2
HAILO: Posts GBP11.7 Million Loss due to North American Closures

IONA ENERGY: FTI Consulting Appointed as Administrators
LEOPARD CLO IV: S&P Raises Rating on Class E Notes to 'B+'
PROJECT SALISBURY: Fitch Assigns 'BB+' Rating to Class L Debt
STOKE PLACE: Cairn Hotel Unit Buys Firm Out of Administration
TATA STEEL: Union to Meet Bosses Over Port Talbot Job Cuts

ZOO ABS II: Moody's Raises Rating on Class C Notes to 'B2'

* UK: Small Energy Firms Log Losses on Crude Price Slump


                            *********

===============
B U L G A R I A
===============


CHIMCO AD: Bids for Assets Sale Due by Jan. 19
----------------------------------------------
Ivaylo Mihaylov of SeeNews reports that the assets of insolvent
Bulgarian fertiliser plant Chimco have been put up for sale again,
at a starting price of BGN11.7 million (US$6.4 million/EUR6
million), a public auction notice indicated.

Bids for Chimco's assets can be submitted by January 19, according
to the public auction notice, SeeNews relays.

In November last year, the company's assets were put up for sale
at a starting price of BGN18.4 million but failed to attract
buyers, SeeNews recounts.

Earlier in 2015, an attempt to sell the plant at a starting price
of BGN22.8 million drew no bids, the report notes. In 2014, the
plant was put up for sale for nearly BGN29 million but again
failed to attract any buyers.

                          About Chimco AD

Chimco is located in Vratsa, in the northwest of Bulgaria. It used
to be Bulgaria's biggest area producer with an output capacity of
800,000 tonnes annually, accounting for approximately 3.5% of
global production. The plant also produced ammonia, carbon
dioxide, argon and various types of catalysts. The company halted
operations in 2003 and was declared bankrupt in 2004.


KREMIKOVTZI AD: Steel Mill Assets Acquired by Fibank
----------------------------------------------------
SeeNews' Ivaylo Mihaylov reports that Bulgaria's First Investment
Bank said on Jan. 7 it acquired the assets of insolvent steel mill
Kremikovtzi from local companies Eltrade Company and Ferosplaven
Zavod.

The transaction will speed up talks on the sale of the assets to a
strategic investor as the bank has a proven expertise in
structuring and carrying out similar deals, as well as because of
the fact that the negotiations will be conducted with only one
owner, SeeNews cites as First Investment Bank (Fibank) saying in a
press release.

Until reaching a deal with a final investor, the plant's assets
will be managed by AMC Real Estate, a Fibank subsidiary, SeeNews
relays.

Kremikovtzi, once Bulgaria's largest steel mill, went bankrupt in
August 2008.  SeeNews relates that in April 2011, Eltrade Company
purchased the steel mill's assets for BGN316 million levs
(US$233.1 million/EUR161.6 million). At that time, Fibank said it
lent Eltrade Company EUR59 million to finance the deal. A few
months later, Bassion Management bought Eltrade Company for a
total of BGN20,000. In its Jan. 7, 2015 press release, Fibank
noted that Eltrade Company has been servicing its loan and has
invested in the rehabilitation of part of the steel mill's assets,
SeeNews points out.



=============
D E N M A R K
=============


ATLANTIC PETROLEUM: Misses Debt Repayment to Eik Bank
-----------------------------------------------------
Niamh Forrest at Energy Voice reports that Atlantic Petroleum said
the company missed paying a debt instalment to Eik Bank in the
Faroe Islands in December.

The company said the amount of DKK19.55mm on its DKK58.5MM debt
will not be met.

Atlantic Petroleum had agreed to pay back the loan in three equal
instalments: December 2015, December 2016 and December 2017.

Energy Voice relates that a spokesman said management was in close
dialogue with Eik Bank on resolving the issue, and was keeping the
bank up to date on "wider issues" for the company.

According to Energy Voice, the company in December 2015 revealed
it was still facing the prospect of bankruptcy if a solution could
not be found following the collapse of Iona Energy and the North
Sea Orlando prospect.

Atlantic, which had a 25% stake in Orlando, said it is in talks
with a London-based party regarding its 25% stake in the Orlando
project, adds Energy Voice.

Atlantic Petroleum is a full cycle exploration and production
(E&P) Group focused on North West Europe. Atlantic Petroleum
currently holds 29 oil and gas licences in the UK, Norway and
Ireland, and has three fields in production in the UK part of the
North Sea.



=============
G E R M A N Y
=============


VOLKSWAGEN AG: Gets Softer Reproach From EU Over Emission Scandal
-----------------------------------------------------------------
Chris White of The Daily Caller reports that Volkswagen AG is
suffering a tidal wave of U.S. fines over its emission scandal,
but government officials in Germany and Europe are taking a softer
approach, perhaps as a way to protect an economic powerhouse,
sources told Reuters over the weekend.

The Daily Caller recounts that in September, VW acknowledged it
installed a type of "defeat device" that curbed smog-producing
nitrous oxide emissions of several of its most popular vehicles,
including the Beetle and Porsche Cayenne. It is believed that the
smog-inducing gas causes ground-level ozone and global warming, as
well as asthma and other respiratory illnesses.

According to the report, sources believe it is unlikely that VW
will face the same kind of scrutiny or stout fines in Europe that
the U.S. has doled out thus far.

The Daily Caller's Mr. White points out that if all the finds and
lawsuits leveled against VW top $50 billion, the German automaker
faces the real possibility of being rendered bankrupt by the
scandal.

To deal with the cavalcade of lawsuits, numbering 25 in all, VW
has set aside $8 million in a legal fund, as well as hired the
same firm that represented British Petroleum after the Deep Water
Horizon oil spill debacle, The Daily Caller discloses.

Sources also tell Reuters that there is an "unwritten rule" among
the 28 EU states that some financial firms and institutions are
too important to Europeans, thus making them essentially immune to
the kind of rigid financial penalties seen in the U.S.

According to the Daily Caller, the scandal, environmentalists
believe, has exposed a blank spot in Europe's ability to regulate
the auto industry. There is no equivalent to the US-based
Environmental Protection Agency (EPA) in the EU -- instead the
bloc relies on a scattershot of 28 different agencies, all with
different standards, to regulate carbon emission testing.

Even German investigators have said that the Federal Data
Protection Act restricts the produce of data to institutions or
people outside of the European Union -- giving them immunity from
the U.S. attorney's request, The Daily Caller points out.

And even as government lawyers were hatching litigation against VW
in the U.S., the EU gave the German auto giant a reprieve,
granting it until the end of January to explain why its carbon
emissions were higher than previously stated, The Daily Caller
relays.

Volkswagen AG -- http://www.volkswagenag.com/-- or Volkswagen
Aktiengesellschaft, shortly VW AG, and its subsidiaries, is a
German multinational automotive manufacturing company
headquartered in Wolfsburg, Lower Saxony, Germany. It designs,
manufactures and distributes passenger and commercial vehicles,
motorcycles, engines, and turbo machinery and offers related
services including financing, leasing and fleet management. It has
maintained the largest market share in Europe for over two
decades.  It employs more than 750,000 people in Germany.



===========
G R E E C E
-==========


GREECE: Bail-Out Review Will Take Months, Eurogroup Chief Says
--------------------------------------------------------------
Philip Chrysopoulous of The Greek Reporter relates that Jeroen
Dijsselbloem, president of Eurozone finance ministers, said on
Thursday, Jan. 7, that the first comprehensive review of Greece's
bailout program will take months to complete.

The completion of the first review is needed so that European
partners can sit down to discuss debt easing, according to the
report.  However, The Greek Reporter relates, Mr. Djisselbloem
told reporters in Amsterdam that Athens must implement
satisfactorily a series of necessary reforms first.

The reforms, The Greek Reporter cites, include drastic changes in
the security fund system, labor laws and farmers taxation -- all
of them met with social disapproval so far.

"There can only be a successful completion of the first review if
there is an agreement on all the open issues -- and the pension
reform is the biggest one," The Greek Reporter quotes Mr.
Dijsselbloem as saying.

European creditors and the International Monetary Fund insist on
their demands for an overhaul of Greece's pension and tax systems
and a strict fiscal policy, the report points out.

The Greek Reporter discloses that the Greek government will table
the reforms in parliament between January 20 and January 25. The
debate and vote on the bill is expected to be completed in the
first 10 days of February, the report adds.

The Greek Reporter also relays that Greek Finance Minister Euclid
Tsakalotos will have a series of meetings with his Eurozone
counterparts on Friday, January 15. He is scheduled to meet Mr.
Dijsselbloem in Amsterdam on January 12 and German Finance
Minister Wolfgang Schaeuble in Berlin the following day.


GREECE: Has Solid Lawmakers Support to Pass Pension Reform
----------------------------------------------------------
Reuters' Angelika Koutantou reports that Deputy Prime Minister
Yannis Dragasakis said in an interview with Avgi newspaper that
the Greek government has a "strong and solid (parliamentary)
majority" from its lawmakers for the pension reform sought.

Mr. Dragasakis, however, noted that passing the relevant law won't
be enough as the government should also secure backing from
workers and political parties to implement the changes, according
to Reuters.

Greece, the report relates, has drafted a proposal to overhaul its
ailing pension system, which envisages merging all six pension
funds into one and a possible cut of future main pensions by up to
30 percent. It plans to submit the proposal to parliament by the
end of the month and to hold a vote on it in early February, says
Reuters.

Prime Minister Alexis Tsipras's government has a parliamentary
majority of just three seats and the pension reform, which
opposition parties and many pensioners and workers oppose, will
test its resolve to implement actions agreed with international
creditors, Reuters notes.

According to the report, hundreds of Greek pensioners and workers
marched in central Athens on Friday, January 8, to protest against
the plan, which is part of a package of reforms Athens needs to
implement to conclude the first review of its EUR86 billion
(US$93.4 billion) bailout and start debt relief talks.

                   Waiver of Greek Bonds

Reuters relates that the European Central Bank's (ECB) Monetary
Policy Strategy division head Rasmus Rueffer said that the ECB
would consider reinstating a waiver of Greek bonds, which would
mean letting Greek banks again swap their country's government
bonds for ultra-cheap ECB funding, and including the securities in
the euro zone's central bank bond purchasing scheme "once the
conditions are right".

Mr. Rueffer also said the International Monetary Fund's full
participation in the Greek program would "be highly desirable",
notes Reuters.  The IMF said last year it would wait to see the
outcome of Greece's debt relief talks with EU partners before
agreeing to inject new cash as part of the country's bailout
program, the report cites.

Greece's mountain of debt is expected to reach 187.8 percent of
annual gross domestic product this year, according to Reuters.

Mr. Rueffer said that euro zone partners have made clear that a
nominal debt "haircut" was not an option, however, there was room
for an extension of maturities and grace periods, Reuters relays.


GREECE: May Head for Collision With Lenders Over Pension Cuts
------------------------------------------------------------
The Telegraph reports that Greece may be in a collision course
with international lenders just months into a new bail-out
program, after vowing not to slash pensions.

Athens' left-wing Syriza government said it would not slash
expenditure on its main and supplementary pensions as part of a
reform plan submitted to international lenders on Jan. 4, The
Telegraph relates.

The reforms have been demanded by lenders in return for the latest
release of bail-out cash, the report points out.

The pensions spending has proven to be the main sticking point for
Greece and its Troika of creditors -- the European Commission, the
European Central Bank, and the International Monetary Fund --
during nearly a year of tortuous negotiations, The Telegraph
cites.

The IMF has pushed hardest for bold cuts to the govenment's
pensions outlay, leading to Greek prime minister Alexis Tsipras
demanding that the Fund take no further part in the country's
bail-out deal, according to the report.

Olga Gerovasili, a Syriza government spokeswoman, said there would
be no immediate pension cuts to those who have already retired,
and expenditure would begin to rise when the economy grows after
2018, The Telegraph relays.

Instead, the report cites, Athens has proposed an increase in
employee and employer contributions and will reduce the amount
people will receive in future pensions by up to 30 percent.

The Telegraph points out that Greeks have seen a 40 percent fall
in their pension provision over the last five years -- a shrinkage
that has been ruled unconstitutional by the country's highest
administrative court.



=============
I R E L A N D
=============


* IRELAND: Number of Corporate Insolvencies Drop 10% in 2015
------------------------------------------------------------
John Mulligan at Irish Independent reports that figures from
Deloitte and insolvencyjournal.ie showed that 69%, or 729 of the
insolvencies in 2015 were voluntary liquidations. The percentage
is consistent with that recorded in 2014, the report says.

According to the report, the service sector notched up the most
corporate insolvencies in 2015, with 200, or 19% of the total.
That was closely followed by the retail industry at 154, or 15% of
the total. The construction industry recorded, 13%, or 139 of the
corporate insolvencies and the hospitality industry recorded 109,
says Irish Independent.

In 2014, the construction sector had accounted for the highest
percentage of insolvencies.

According to Irish Independent, receiverships accounted for 251,
or 24% of corporate insolvencies last year, down by 50 from 2014.
There were 50 court liquidator appointments in 2015, compared to
68 the previous year.

But David Van Dessel, a partner in Deloitte Restructuring
Services, said that while it was encouraging to see the overall
number of insolvencies fall, it was disappointing that levels of
examinership remain at "very low levels" compared to international
peers, relays Irish Independent. He said that a "real effort"
needs to be made to educate SMEs on the option.

In 2015, only 19 examiners were appointed, representing just 2% of
all insolvencies in the year, the report discloses. The percentage
is consistent with prior years. Mr Van Dessel said he expects the
number of corporate insolvencies to continue to fall this year.

"It is expected that there will finally be an increase in the
number of companies opting to restructure by way of examinership,
particularly as the general improvement in the domestic economy
should mean that more businesses will have a reasonable prospect
of survival," Irish Independent quotes Mr. Van Dessel as saying.
"By corollary, the anticipated increase in restructuring should
lead to a corresponding decrease in the number of creditors'
voluntary liquidations."



===========
P O L A N D
===========


COGNOR SA: Moody's Assigns 'Caa2-PD/LD' to PDR Over Debt Buy Back
-----------------------------------------------------------------
Moody's Investors Service, on Jan. 7, 2015, assigned a limited
default (LD) indicator to Cognor S.A.'s Caa2-PD probability of
default rating (PDR) which was concurrently affirmed. At the same
time, Moody's affirmed Cognor's Caa2 corporate family rating (CFR)
and Caa2 rating to the senior secured notes. The assignment of the
PDR to Caa2-PD/LD follows the company's purchase of approximately
EUR7 million at 53.8% of the nominal value to par following the
modified Dutch auction initiated by Huta Stali Jakosciowych SA, a
subsidiary of Cognor SA, on its senior secured notes issued by
Cognor International Finance Plc due 2020. The outlook on all
ratings is stable.

The /LD indicator reflects Moody's view that the proposed debt
repurchase constitutes a distressed exchange under Moody's
definition of default. Moody's will remove the /LD indicator from
the PDR in three business days.

RATINGS RATIONALE

On November 27, 2015, Cognor announced that its subsidiary Huta
Stali Jakosciowych SA (HSJ) invited holders of the senior secured
notes issued by Cognor International Finance Plc due 2020 to
participate in a modified Dutch tender auction to purchase their
notes for cash, at a discount to par. The auction closed on
December 24, 2015 and EUR7 million of notes were tendered. The
total cash amount paid is approximately EUR3.7 million (excluding
accrued interests) or 53.8% of the nominal value of the
outstanding senior secured notes. The company will fund the cash
purchase of the tendered notes via cash on the balance sheet and
drawdown under its overdraft or factoring facilities.

The transaction reduces the amount outstanding under the senior
secured notes, resulting in a slight improvement in leverage and
reduction of the company's annual interest payments on the senior
secured notes by around EUR0.7 million. Proforma for the tender
the company's adjusted debt/EBITDA for the twelve month period
ended September 2015 decreases to around 8.3x from around 8.4x.

While the exchange amount is sufficient to qualify as a distressed
exchange it is still not sufficiently material to deliver a
meaningful improvement in Cognor's metrics, liquidity or future
default prospects. If there are further small exchanges in the
coming months, Moody's would likely view them as a continuation of
the current default rather than treating each exchange as a
separate default.

RATINGS AND OUTLOOK

The CFR remains constrained by the substantial debt burden, which
will not be reduced after the exchange offer and the constrained
liquidity situation. Furthermore, the CFR will continue to reflect
the overall continued weakness of the regional steel market and
low price environment for steel products.

WHAT COULD CHANGE THE RATING -- UP

A positive action on the ratings or the outlook could be
considered after completion of the debt restructuring reflecting:
(1) the improved liquidity; (2) improvement in the regional steel
market conditions leading to higher margins; and (3) leverage to
be reduced over time.

WHAT COULD CHANGE THE RATING -- DOWN

Negative pressure might develop if market conditions deteriorate
affecting the cash generation and liquidity of the company or if
the company is not able to reduce its gross leverage.



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


ANGLO AMERICAN: Shareholder Opposes Tapping Investors for Cash
--------------------------------------------------------------
Jon Yeomans at The Telegraph reports that troubled miner Anglo
American should only turn to shareholders for more cash as a last
resort, its biggest investor has said.

The Telegraph relates that the Public Investment Corporation,
which owns 9% of Anglo, said the company should look to cut costs
as far as possible before raising equity.

"The board and management of any company should first explore all
cost-cutting options available to it in order to ensure the future
of the company, before engaging with shareholders for a financial
injection to salvage the company," PIC told Bloomberg, The
Telegraph relays.

PIC, which manages funds on behalf of public sector workers in
South Africa, also urged Anglo to consider the social impact of
the job cuts it has proposed to make, many of which could fall in
its home territory of South Africa, according to The Telegraph.

Last month, Anglo outlined sweeping plans to shed around 60% of
its assets, cut its dividend to save money and reduce its
workforce from 135,000 to 50,000, as it battles a plunge in
commodity prices and a collapse in its share price, the report
recalls.

The Telegraph notes that the miner was the worst-performing stock
in the FTSE 100 last year, shedding 75% of its value amid a dive
in sales and profits.

It has fared little better in 2016, with shares down 18% since
Jan. 4, The Telegraph says. The stock tumbled more than 9% on Jan.
7 following further turmoil on the Chinese stock market and a note
from Barclays analysts who cut their target price on the stock
from 485 pence to 225 pence, adds The Telegraph.

Headquartered in London, U.K., Anglo American PLC (LON:AAL) --
http://www.angloamerican.com/-- is a mining company. The
Company's segments include Iron Ore and Manganese, which includes
iron ore, manganese ore and alloys; Coal, which includes
metallurgical coal and thermal coal; Copper, which includes
copper; Nickel, which includes nickel; Niobium, which includes
niobium; Phosphates, which includes phosphates; Platinum, which
includes platinum group metals, and De Beers, which includes rough
and polished diamonds. Its portfolio offers bulk commodities and
base metals to precious metals and diamonds (through De Beers).
Its bulk commodities include iron ore, manganese, metallurgical
coal and thermal coal. The Company's base metals and minerals
include copper, nickel, niobium and phosphates. In precious metals
and minerals, the Company produces both platinum and diamonds. Its
mining operations, projects and exploration and marketing
activities extend across southern Africa, South America,
Australia, North America, Asia and Europe.


CAPARO INDUSTRIES: Turnaround Plan Scrapped Due to Disagreement
---------------------------------------------------------------
Storm Rannard at Insider Media Limited reports that a turnaround
plan to rescue steel giant Caparo Industries plc had been in the
pipeline ahead of its administration, new documents seen by
Insider have revealed, but were scrapped after directors and
shareholders failed to agree on how they should be implemented.

More light has also been shed on the potential scale of the
group's pension deficit, according to Insider Media Limited.

The report notes that administrators from PricewaterhouseCoopers
were called into 16 businesses under the Caparo Industries plc
group in October 2015 amid falling steel prices and weak demand.

More than 450 redundancies were initially made, with many jobs cut
across its West Midlands operations, the report notes.  However,
PwC agreed a string of rescue deals for a significant chunk of the
group, preserving more than 1,100 jobs across the country in the
run up to Christmas, the report says.

The report relays that new documents have now revealed that while
low commodity prices, exchange rates and business confidence had
affected the Caparo businesses, the group's situation had been
"exacerbated" by its asset-based lending facility.  Lower sales
also led to a reduction in the availability of funding from
debtors to meet creditor payments, the report discloses.

The report notes that in September discussions between Caparo's
directors and stakeholders were held in a bid to create a
turnaround divestment plan, which would have required "further
significant funding."  After failing to reach an agreement,
directors called in insolvency experts, the report says.

The report discloses that PwC Partner Matthew Hammond, one of the
administrators of the group, told Insider Caparo's pension deficit
could be between GBP45 million and GBP50 million "in the worst
case scenario".

The report notes that The Pension Protection Fund has confirmed
that four of the five participating employers of the Caparo 1988
Pension Scheme are currently under assessment.

"We don't yet know the real pensions deficit," the report quoted
Mr. Hammond as saying.  "The Pension Protection Fund is
investigating although we would not expect it to report until the
end of this year," he added.

Insider Media Limited says that the report has also provided more
details on some of the rescue deals struck following the
administration.

Insider Media Limited relays that Applus+ paid GBP7 million for
the non-destructive testing business of Caparo Testing
Technologies in November, preserving the roles of 76 workers at
sites in Oldbury, Reigate, Luton, Poole, Oxfordshire and Dorset.

Insider Media Limited notes Liberty Steel, controlled by business
magnates the Gupta family, also saved 333 jobs with the purchase
of Caparo Precision Tubes Oldbury, Caparo Tube Components, Caparo
Accles and Pollock, Hub Le Bas and the Caparo Tubes Tredegar
asset.

However, the documents were compiled by administrators as the
Guptas struck a deal for another significant chunk of the business
on 10 December, preserving more than 620 roles. Insider Media
Limited says.

They acquired:

  -- Clydesdale Jones,
  -- Caparo Modular Systems and Caparo Advanced Composites,
  -- Caparo Aluminium Bridge,
  -- Caparo Vehicle Technologies,
  -- CMT Engineering made up of Tube fittings, Dynamics, Clamps
     and Insulation,
  -- Caparo Precision Strip - JB&S Lees,
  -- Caparo Drawn Products and Fairbright Wire and Caparo
     forging.

Caparo was just one of the casualties of the UK's steel industry
in 2015, the report notes.  Thousands of jobs were lost in the
North East after SSI closed its Redcar plant and Tata Steel also
announced a major restructure during the year, the report adds.


CHIPOTLE MEXICAN: Faces Investor Suit Over E. Coli Outbreak
-----------------------------------------------------------
BBC News reports that Chipotle Mexican Grill is facing an investor
lawsuit connected to an outbreak of E. coli in its restaurants in
eight US states.

According to BBC News, investors allege the restaurant chain
failed to reveal that "its quality controls were inadequate to
safeguard consumer and employee health."

As a result, the company's stock price has been battered by the
outbreaks of illnesses linked to its stores, the lawsuit said, the
report relays.

BBC News says the firm is already facing lawsuits from individuals
that contracted E. coli.

Chipotle is also facing a federal criminal probe connected to an
outbreak of norovirus, which was filed by the state of California,
BBC News relates.

BBC News notes that the company's share price has fallen 35% since
October and same-restaurant sales were down 30% in December.

According to the report, the lawsuit seeks damages on behalf of
investors who acquired Chipotle shares from February 2015 to
January 2016.

It was filed in US District Court for the Southern District of New
York, the report says.

It is another headache for the restaurant chain, whose sales have
slumped since an E. coli outbreak made more than 50 people ill in
nine states in October and November, according to the report.

In an effort to address the situation, Chipotle announced in
December that it was changing its food preparation methods.

A statement on its website said: "We have taken aggressive actions
to implement pioneering food safety practices," the report adds.


FIRST QUANTUM: Moody's Cuts CFR to Caa1; Sr. Unsec. Notes to Caa2
-----------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating and the probability of default rating (PDR) of First
Quantum Minerals Ltd (FQM) to Caa1 and Caa1-PD from B2 and B2-PD,
respectively.

At the same time, Moody's has downgraded the ratings on all of the
senior unsecured notes issued by FQM to Caa2 from B3.

The outlook on all ratings is negative.

"The downgrade of FQM's CFR to Caa1 reflects the significant
challenges the company faces in materially lowering its leverage
-- as measured by debt/EBITDA -- from around 7.7x,
notwithstanding the company's remedial measures against the
weakening copper and nickel prices," says Douglas Rowlings, a
Moody's Analyst and the Local Market Analyst for FQM.

"The negative outlook reflects our expectation that FQM's credit
profile could come under further pressure if it fails to execute
the remedial measures in a timely manner according to plan, and
fails to renegotiate or relax its bank covenants," adds Rowlings.

On Dec. 8, 2015, Moody's reduced its forward-looking price
assumptions for copper to $2.15/pound (lb) for 2016 and $2.35/lb
for 2017, and for nickel to $3.80/lb for 2016 and $4.00/lb for
2017.

The lowered assumptions reflect weaker global growth expectations
for 2016, softening demand, the strength of the US dollar, and
continued uncertainty surrounding metal demand in China

RATINGS RATIONALE

Moody's expects that weak copper and nickel prices, along with
ongoing capital expenditure at FQM's Cobre Panama project, will
continue to weigh on its free cash flow generation and ability to
significantly reduce its debt.

FQM has committed to reduce net debt by roughly $1 billion through
asset sales and other strategic initiatives by the end of Q1 2016.
However, Moody's notes that such initiatives are not immune to
delays or execution risk.

Moody's expects that should FQM be unable to reduce net debt by
roughly $1 billion that it is unlikely that the company will be
able to meet the step down in its net debt/EBITDA bank covenants
to 5.5x for the 1H2016 and 4.5x for the 2H2016.  FQM's net
debt/EBITDA as defined by its bank facility agreement was 5.74x at
30 September 2015.

Moody's will also closely monitor the production ramp up rate of
FQM's new Sentinel mine with a focus on the sufficiency of the
energy supplied to both its Kansanshi and Sentinel mines in Zambia
(B2 stable), as well as electricity tariffs on the mines' net
direct cash costs (C1 costs).

C1 cash costs include all mining and processing costs less any
profits from by-products such as gold, cobalt or platinum group
elements.  Treatment and refining charges along with freight
deductions on metal sales, which are typically recognized as a
component of sales revenues, are added to C1 cash costs to arrive
at an approximate cost of finished metal.

Zambia continues to face challenges in meeting electricity demands
as a severe drought is adversely impacting hydroelectric power
generation.  Currently, FQM has sufficient electricity supply in
Zambia to meet needs at its mines but is still waiting for
electricity transmission on a second line to its Sentinel mine.

Despite these challenges, FQM's credit profile continues to
benefit from a number of operational risk mitigants.

In particular, the company has a natural hedge against the weak
copper price through its low C1 cash cost position, which Moody's
expects will be close to the lower end of 2015 guidance of $1.20-
$1.35/lb.  This level compares favorably with the below $1.5/lb
average among its global copper mining peers.  The company also
has a strong track record of finding buyers for its production.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects the near-term challenges FQM faces,
including (1) its elevated debt/EBITDA levels, leaving it
vulnerable to market volatility; (2) uncertainty around its
ability to comply with its scheduled bank covenant step-downs of
net debt/EBITDA to 4.5x for 2H 2016; and (3) uncertainty around
its ability reduce its net debt by over $1 billion and execute and
implement other strategic initiatives by the end of Q1 2016.

Moody's will continue to monitor the company's countermeasures to
strengthen its credit metrics and liquidity in the lower price
environment, and will adjust the ratings to reflect any positive
developments should they have a material bearing on FQM's credit
profile.

WHAT COULD CHANGE THE RATING -- UP/DOWN

FQM's rating could be downgraded if its debt/EBITDA remains above
6.0x and EBIT to interest ratio remains below 1.25x over the next
12 to 18 months, while its liquidity position weakens.

An upgrade to FQM's ratings is unlikely until it demonstrates its
ability to meet its bank covenants in 2016 and 2017.

The principal methodology used in these ratings was Global Mining
Industry published in August 2014.

The Local Market analyst for this rating is Douglas Rowlings, 971-
4-237-9543.

First Quantum Minerals Ltd (FQM), headquartered in Canada (Aaa
stable) and listed on the Toronto Stock Exchange and the London
Stock Exchange, is a medium-sized mining company with a large
operation in Zambia (B2 stable), where it manages Kansanshi, a
large and low-cost copper and gold deposit.

FQM also operates a small copper and gold mine in Mauritania
(unrated), a nickel mine in Australia (Aaa stable), a copper-
nickel and copper-zinc mine in Finland (Aaa negative), and two
copper mines in Spain (Baa2 positive) and Turkey (Baa3 negative).
FQM also has an 80% interest in Cobre Panama, one of the world's
largest copper deposits in Panama (Baa2 stable).

FQM reported revenues of $2.754 billion and EBITDA of $738.8
million for the 12 months to end-September 2015.


HAILO: Posts GBP11.7 Million Loss due to North American Closures
----------------------------------------------------------------
Madhumita Murgia at The Telegraph reports that British taxi-
hailing app Hailo, backed by star investors including Richard
Branson, made an GBP11.76 million loss in 2014 thanks to the
closure of its North American operations in October 2014.

The app, founded by former veteran London cabbies, allows its
users to hail black cabs, unlike rivals such as Uber which only
work with private minicabs.

The Telegraph, citing the company accounts, discloses that Hailo's
total GBP21.7 million loss for the 2013-2014 financial year, to
which the discontinued North American branch contributed over
half, came despite a 39% increase in its revenue, to GBP7.9
million.

The Telegraph relates that at the time of the closures, Hailo's
head office cited price pressures from competitors in the crowded
ride-hailing app market, such as Uber and Lyft, saying: "The
astronomical marketing spend required to compete is making
profitability for any one player almost impossible."

The report notes that although Hailo has raised over $100 million
in venture capital funding from well-known investors such as Union
Square Ventures and Accel Partners, its rivals are flush with cash
and willing to spend. Market leader Uber has raised roughly $6.6
billion, while Lyft spent $96.1 million on marketing in the first
half of 2015 alone, The Telegraph discloses citing leaked
financials.

According to The Telegraph, the troubled startup changed chief
executives three times in as many months, appointing former COO of
Carphone Warehouse Andrew Pinnington in January last year, after
original co-founder Jay Bregman and Tom Barr both stepped down in
the wake of Hailo's international closures.

As part of its newly renewed expansion efforts, Hailo
controversially branched out into minicab hailing, sparking
protests from cabbies, The Telegraph says. In October last year,
it backtracked, announcing that it would resign its private hire
licence to make it fully a black-cab service once again, recalls
The Telegraph.

At a time when Hailo's major competitor Uber faces regulatory
backlash from organisations such as Transport for London, and
governmental concerns about its data handling practices, Hailo can
hope to recover by going back to its roots, and putting its weight
behind black cabs again, The Telegraph notes.


IONA ENERGY: FTI Consulting Appointed as Administrators
-------------------------------------------------------
Chad Griffin -- chad.griffin@fticonsulting.com -- and Lisa
Rickelton -- lisa.rickelton@fticonsulting.com  -- of FTI
Consulting LLP on Jan. 6, 2016, were appointed as Joint
Administrators of Iona Energy Company (UK) plc and Iona UK
Huntington Limited, both oil and gas exploration and production
companies with assets in the UK North Sea.

Iona Energy Inc. (the Canadian parent of the Companies) announced
on Nov. 18, 2015, that a financial restructuring could not be
completed following the decision by a proposed farm out partner
not to proceed.  This announcement also advised that since there
was no reasonable prospect of obtaining alternative funding in the
current commodity price environment and within the required
timeframes, it was highly likely that insolvency procedures would
be needed to protect the interests of all stakeholders to the
Companies.

The appointment of administrators has occurred following a period
in which the Companies' business and assets have been marketed
with a view to maximising value for all creditors. This process
continues in relation to certain licenses, in particular the
Orlando field development and associated Kells Licence.

In relation to the Companies' licenses:

  -- The administrators are assessing the feasibility of a range
     of potential transactions in connection with the Orlando
     project. Discussions continue with interested parties in
     this regard

  -- The execution of a transaction to transfer the Trent and
     Tyne licenses is anticipated imminently

  -- Discussions are progressing with a view to a potential
     transfer of the West Wick license in due course

  -- A default notice has been served on one of the Companies
     under the Huntington license in terms of the joint operating
     agreement

  -- Arrangements are being made to withdraw from, or relinquish
     the Companies' other licenses

Chad Griffin, one of the Joint Administrators, said:

"The administrations illustrate the significant challenges facing
oil and gas companies in the current oil price environment.
Throughout last year, and in particular over the last six weeks,
there has been a great deal of work to maximise value for the
Companies' stakeholders in difficult circumstances.  I would like
to express our gratitude to management, employees, suppliers,
bondholders, regulators and other key stakeholders for their
support during this time and as we work together to look to find a
satisfactory solution for creditors."


LEOPARD CLO IV: S&P Raises Rating on Class E Notes to 'B+'
----------------------------------------------------------
Standard & Poor's Ratings Services raised its credit ratings on
Leopard CLO IV B.V.'s class B, C1, C2, D, E, and R combination
notes.  At the same time, S&P has withdrawn its principal-only
rating on the class Z combination notes.

The upgrades follow S&P's assessment of the transaction's
performance using data from the Oct. 31, 2015 trustee report and
the application of its relevant criteria.

Upon publishing S&P's updated corporate collateralized debt
obligation (CDO) criteria, it placed those ratings that could
potentially be affected under criteria observation.  Following
S&P's review of this transaction, its ratings that could
potentially be affected by the criteria are no longer under
criteria observation.

S&P conducted its cash flow analysis to determine the break-even
default rate (BDR) for each class of notes at each rating level.
The BDR represents S&P's estimate of the maximum level of gross
defaults, based on its stress assumptions, that a tranche can
withstand and still fully repay the noteholders.  In S&P's
analysis, it used the reported portfolio balance that it considers
to be performing (EUR72,811,054), the current weighted-average
spread (3.64%), and the weighted-average recovery rates calculated
in line with S&P's CDO criteria.  S&P applied various cash flow
stresses, using its standard default patterns, in conjunction with
different interest rate and currency stress scenarios.

Since S&P's previous review, the class A notes have fully repaid
and the class B notes have significantly deleveraged to a note
factor (the current notional amount divided by the notional amount
at closing) of 18.87%.  The amortization of these senior classes
of notes has increased the available credit enhancement for all of
the rated classes of notes and, consequently, has also increased
the BDRs at each rating level.

Since S&P's previous review, the portfolio's overall credit
quality has remained stable, while its weighted-average life has
increased slightly.  The increased risk horizon, coupled with
increased borrower concentration, has resulted in higher scenario
default rates (SDRs) at each rating level.  The SDR is the minimum
level of portfolio defaults we expect each CDO tranche to be able
to support the specific rating level using Standard & Poor's CDO
Evaluator.

Of the portfolio's assets, 29.8% are non-euro-denominated.  To
mitigate the risk of foreign exchange-related losses, the issuer
has entered into cross-currency swap agreements with Credit Suisse
International and JPMorgan Chase Bank N.A. for all but one non-
euro asset.  The documented downgrade provisions in these asset
swap contracts do not fully comply with our current counterparty
criteria.  S&P has therefore applied currency stresses on these
non-euro assets.

S&P has also applied its nonsovereign ratings criteria.  S&P has
considered the transaction's exposure to sovereign risk because
some of the portfolio's assets, 15.20% of the transaction's
aggregate collateral balance, are based in Spain and Italy.  In
'AAA' rating scenarios, S&P has limited credit to 10% of the
transaction's collateral balance, to correspond to assets based in
these sovereigns in S&P's calculation of the aggregate collateral
balance.

In S&P's opinion, the increased credit enhancement for the class
B, C1, and C2 notes is now commensurate with higher ratings than
those previously assigned.  S&P has therefore raised its ratings
on these classes of notes.

Although S&P's cash flow analysis supports higher ratings on the
class D and E notes, the reduced aggregate collateral balance has
increased obligor concentration in the portfolio, and as a result,
the application of the largest obligor default test (a
supplemental stress test) constrains S&P's ratings on the class D
and E notes at 'BBB+ (sf)' and 'B+ (sf)' levels, respectively.
S&P has therefore raised to 'BBB+ (sf)' from 'BB+ (sf)' and to
'B+ (sf)' from 'CCC+ (sf)' its ratings on the class D and E notes,
respectively.

S&P's rating on the class R combination notes addresses ultimate
payment of interest and principal.  The current outstanding
balance for this class is 63.9% of the original balance, which is
a result of the timely payment of interest on its components.
S&P's credit and cash flow analysis indicates that the notes now
pass at a higher rating than that previously assigned.  S&P has
therefore raised to 'AAA (sf)' from 'A+ (sf)' its rating on this
class of notes.

S&P has withdrawn its 'A-p (sf)' principal-only rating on the
class Z combination notes because the rated balance has been fully
paid.  S&P's rating on this class of notes addressed the cash
flows from the notes' component parts that are equivalent to the
initial principal amount.

Leopard CLO IV is a cash flow collateralized loan obligation (CLO)
transaction, backed primarily by leveraged loans granted to
speculative-grade corporate firms.  The transaction closed in May
2006 and it reached the end of its reinvestment period in February
2012. M&G Investment Management Ltd. is the transaction's manager.

RATINGS LIST

Leopard CLO IV B.V.

EUR419.475 mil floating- and fixed-rate notes

                                         Rating
Class         Identifier            To                  From
B             52668QAB2             AAA (sf)            AA+ (sf)
C1            52668QAC0             AAA (sf)            A+ (sf)
C2            52668QAM8             AAA (sf)            A+ (sf)
D             52668QAD8             BBB+ (sf)           BB+ (sf)
E             52668QAE6             B+ (sf)             CCC+ (sf)
R-Combo       52668QAH9             AAA (sf)            A+ (sf)
Z-Combo       52668QAL0             NR                  A-p (sf)

NR--Not rated


PROJECT SALISBURY: Fitch Assigns 'BB+' Rating to Class L Debt
-------------------------------------------------------------
Fitch Ratings has assigned Project Salisbury's notes expected
ratings as follows:

Class A: 'AAA(EXP)sf'; Outlook Stable
Class B: 'AAA(EXP)sf'; Outlook Stable
Class C: 'AA+(EXP)sf'; Outlook Stable
Class D: 'AA(EXP)sf'; Outlook Stable
Class E: 'AA-(EXP)sf'; Outlook Stable
Class F: 'A+(EXP)sf'; Outlook Stable
Class G: 'A(EXP)sf'; Outlook Stable
Class H: 'A-(EXP)sf'; Outlook Stable
Class I: 'BBB+(EXP)sf'; Outlook Stable
Class J: 'BBB(EXP)sf'; Outlook Stable
Class K: 'BBB-(EXP)sf'; Outlook Stable
Class L: 'BB+(EXP)sf'; Outlook Stable
Class M: 'BB(EXP)sf'; Outlook Stable
Class N: 'BB-(EXP)sf'; Outlook Stable
Class Z: not rated

The transaction is a granular synthetic securitisation of GBP789.4
million unfunded credit default swap (CDS), which referenced loans
granted to small and medium-sized enterprises (SME) investing in
the UK real estate sector. The loans are secured with real estate
collateral and were originated by Lloyds Banking Group.

Lloyds Banking Group has bought protection under the CDS contract
relating to the equity risk position but has not specified the
date of execution of the contracts relating to the rest of the
capital structure. The expected ratings are based on the un-
executed documents provided to Fitch, which have the same terms as
the equity CDS contracts executed so far by Lloyds Banking Group.
Fitch understands from Lloyds Banking Group that it has no
immediate need to buy protection on the remaining capital
structure.

Should the documents not be executed, Fitch will nevertheless
monitor the expected ratings using the applicable criteria for as
long as the CDS contract exists.

The ratings of the notes address the likelihood of a claim being
made by the protection buyer under the unfunded CDS by the end of
the 10-year protection period in accordance with the
documentation.

KEY RATING DRIVERS

Limited Negative Selection of Portfolio

Fitch determined an annual average probability of default (PD) for
the originator's book of 3.5%, which map to a one-year expected PD
of 4.8% for the originator's real estate book and 4.7% for the
transaction. This implies limited negative selection of the
securitised portfolio.

Concentration Risk

While the portfolio will compose at closing of around 2,500
obligors and is granular with the largest obligor only
representing 25bps of the portfolio, all borrowers are exposed to
the UK real estate sector. The application of Fitch's standard
corporate correlation assumptions resulted in rating default rate
(RDR) levels of approximately 80% at the 'AAA' level. Fitch
usually does not expect RDRs to be higher than 75%. Nevertheless
the agency assigned 'AAA(EXP)sf' due to the obligor granularity
and regional diversity.

Low Loan to Value (LTV) Ratio

Each loan in the securitised portfolio is collateralised with
property. The average LTV ratio of the portfolio is 52% and it is
capped at 60% during the replenishment period. The LTV could be
diluted after the replenishment period given new loans could be
issued outside the transaction. Base on the maximum 70% LTV
threshold in the originator's credit policy, Fitch applied an
average 70% LTV to the portfolio, which leads to a base case 71.4%
recovery rate.

Replenishment Period

The transaction features a three-year replenishment period subject
to conditions aimed at limiting additional risks. The portfolio
limitations are set to be close to the actual portfolio, reducing
the scope for portfolio deterioration by Lloyds Banking Group
including weaker credits. Fitch has captured the replenishment
risk based on a stressed portfolio, taking into account the
replenishment triggers and replenishment conditions of the
transaction.

RATING SENSITIVITIES

Increasing the default probabilities assigned to the underlying
obligors and reducing their assumed recovery rates by 25% each
could result in a downgrade of up to three notches to the notes.

Finally a joint stress combining the abovementioned stresses could
lead to a downgrade up to four notches.


STOKE PLACE: Cairn Hotel Unit Buys Firm Out of Administration
--------------------------------------------------------------
Muhammad Aldalou at Insider Media Limited reports that a 39-
bedroom boutique hotel set within 26 acres of gardens in
Buckinghamshire has been purchased out of administration.

International real estate advisor Savills has sold the long
leasehold interest in Stoke Place Hotel, Stoke Poges, to a
subsidiary of Cairn Hotel Group for an undisclosed sum, according
to Insider Media Limited.

The report notes that the sale was completed on behalf of M B
Callaghan and R M Wilkinson, the joint administrators of Stoke
Place Hotel Ltd.

The report notes Gary Witham, hotels director at Savills, said:
"This country house hotel was once a renowned wedding and events
venue and is well-suited to both leisure and corporate guests.
Cairn Hotel Group also owns the nearby Crowne Plaza Gerrards Cross
as part of its extensive portfolio and has the capability and
expertise to put Stoke Place back on the map."


TATA STEEL: Union to Meet Bosses Over Port Talbot Job Cuts
----------------------------------------------------------
BBC News reports that the Community Union said it expects to meet
bosses from Tata Steel this week amid reports of hundreds of
potential job losses at Tata's Port Talbot plant.

There are reports that a quarter of the workforce could lose their
jobs in a major restructuring at the plant, BBC News says.

Tata Steel Europe, which employs 17,000 in the U.K. including
4,000 at Port Talbot, is in the throes of a wide-scale
reorganisation of its business, according to BBC News.

The report says the moves have been prompted by a slump in the
price of steel.

The Port Talbot plant is the UK's largest steel works, BBC News
notes.

BBC News quotes a spokesperson for Community, the steelworkers'
union as saying that: "These reports of potential job losses at
Port Talbot should serve as a stark reminder of the ongoing steel
crisis and the urgent need for government to deliver upon the
agreed steps to protect this vital foundation industry.

"We need a level playing field for UK steel makers, especially on
issues like business rates and energy costs.

"Community will be meeting with Tata Steel . . . to discuss these
reports and how best we can build a sustainable steel industry
together."

Late last year, Tata Steel said it was in talks with an investment
firm to sell its Long Products business, which includes plants in
Scunthorpe and Lanarkshire, BBC News recalls.

There have been waves of job losses in the steel industry in the
UK, which the sector has blamed on cheap Chinese imports and a
collapse in prices.

In October, Tata Steel announced nearly 1,200 roles were to be
axed in Scunthorpe and Lanarkshire, BBC News says.

Tata Steel is the UK's biggest steel company.


ZOO ABS II: Moody's Raises Rating on Class C Notes to 'B2'
----------------------------------------------------------
Moody's Investors Service announced that it has upgraded ratings
of these classes of notes issued by Zoo ABS II B.V.:

  EUR167 mil. (Current outstanding balance: EUR 43.1M) Class A-1
   Senior Secured Floating Rate Notes due 2096, Upgraded to
   Aaa (sf); previously on May 12, 2015, Upgraded to Aa2 (sf)

  EUR18.75 mil. Class A-2 Senior Secured Floating Rate Notes due
   2096, Upgraded to Aa3 (sf); previously on May 12, 2015,
   Upgraded to A1 (sf)

  EUR10 mil. Class B Senior Secured Floating Rate Notes due 2096,
   Upgraded to Baa2 (sf); previously on May 12, 2015, Upgraded to
   Ba1 (sf)

  EUR9.25 mil. Class C Deferrable Interest Secured Floating Rate
   Notes due 2096, Upgraded to B2 (sf); previously on May 12,
   2015, Upgraded to Caa1 (sf)

  EUR5.7 mil. (Current outstanding rated balance: EUR4.1M) Class
   P Combination Notes due 2096, Upgraded to A2 (sf); previously
   on May 12, 2015, Upgraded to A3 (sf)

  EUR6 mil. (Current outstanding balance: EUR 3.0M) Class Q
   Combination Notes due 2096, Upgraded to Aa3 (sf); previously
   on May 12, 2015, Affirmed Ba3 (sf)

  EUR7 mil. (Current outstanding balance: EUR 4.3 mil.) Class R
   Combination Notes due 2096, Upgraded to Aa3 (sf); previously
   on May 12, 2015, Upgraded to A1 (sf)

Moody's also affirmed the ratings on these notes issued by Zoo ABS
II B.V.:

  EUR9 mil. Class D Deferrable Interest Secured Floating Rate
   Notes due 2096, Affirmed Caa3 (sf); previously on May 12,
   2015, Affirmed Caa3 (sf)

  EUR4.25 mil. Class E Deferrable Interest Secured Floating Rate
   Notes due 2096, Affirmed Ca (sf); previously on May 12, 2015,
   Affirmed Ca (sf)

Zoo ABS II B.V. is a managed cash-flow collateralized debt
obligation backed primarily by a portfolio of Euro dominated
Structured Finance securities.  At present, the portfolio is
composed mainly of Prime RMBS (71.9%), CLO (13.8%), other CDOs
(6.5%), ABS Consumer/Auto (5.3%), and CMBS (2.6%).

RATINGS RATIONALE

The rating actions on the notes are a result of the improvement in
the credit quality of the collateral as well as the deleveraging
of the Class A-1 notes.

Since March 2015, 40.8% of the portfolio aggregate amount was
upgraded by an average of 1.8 notches.  Additionally, over the
same period, the amount of assets rated within the Caa range by
Moody's has reduced to EUR15.2 mil. from EUR20.2 mil., and
defaulted assets to EUR12.7 mil. from EUR 15.9 mil.

Class A-1 has repaid EUR33.0M or 23.2% of the tranche original
balance since the March 2015 payment date.  The amortization of
the Class A-1 has also improved the overcollateralization ratios
across the capital structure.  As per the December 2015 trustee
report, the Class A/B, Class C, Class D and Class E
overcollateralization ratios are reported at 125.01%, 113.46%,
104.11% and 100.15% respectively, compared to 118.40%, 108.81%,
100.86% and 96.07% as per the March 2015 trustee report.

Moody's notes that the Class E OC test fails to pass its trigger
consequently remaining interest is being diverted to redeem Class
A-1 Notes.

The rating on the combination notes addresses the repayment of the
rated balance on or before the legal final maturity.  For the
Classes P, Q and R, the rated balance at any time is equal to the
principal amount of the combination note on the issue date minus
the sum of all payments made from the issue date to such date, of
either interest or principal.  The rated balance will not
necessarily correspond to the outstanding notional amount reported
by the trustee.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Approach to Rating SF CDOs" published in July 2015.

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

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes:
Amounts of defaulted assets - Moody's considered a model run where
the Caa assets in the portfolio were assumed to be defaulted.  The
model outputs for these runs are within two notches from the
ratings.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
notes, in light of 1) uncertainty about credit conditions in the
general economy 2) divergence in the legal interpretation of CDO
documentation by different transactional parties due to embedded
ambiguities.

Additional uncertainty about performance is due to:

  Portfolio amortization: The main source of uncertainty in this
   transaction is the pace of amortization of the underlying
   portfolio, which can vary significantly depending on market
   conditions and have a significant impact on the notes' ratings.
   Amortization could accelerate as a consequence of high
   prepayment levels or collateral sales by the collateral
   manager.  Fast amortization would usually benefit the ratings
   of the notes beginning with the notes having the highest
   prepayment priority.

  Recovery of defaulted assets: Market value fluctuations in
   trustee-reported defaulted assets and those Moody's assumes
   have defaulted can result in volatility in the deal's
   overcollateralisation levels.  Further, the timing of
   recoveries and the manager's decision whether to work out or
   sell defaulted assets can also result in additional
   uncertainty.  Recoveries higher than Moody's expectations would
   have a positive impact on the notes' ratings.

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


* UK: Small Energy Firms Log Losses on Crude Price Slump
--------------------------------------------------------
Kiran Stacey at The Financial Times reports that nine out of 10
small London-listed oil and gas companies are making losses,
according to new data highlighting the full impact of the plunging
crude price on junior energy groups.

The FT relates that a survey of 104 exploration and production
companies listed on the London Stock Exchange's Aim market by
Company Watch, a research firm, found 42% were in its "warning
area" at the end of last year.

This means the groups are 50 times more likely to suffer financial
distress than a typical company, the FT relates citing Company
Watch. It highlights how energy groups' efforts to cut costs to
cope with the oil price rout have not been universally successful,
the FT states.

According to the FT, Company Watch found the combined market value
of the 104 companies had dropped by 40% in the past year. Ninety
per cent were making pre-tax losses in their most recent accounts,
but the overall performance was better than in 2014 partly because
costs have been cut significantly, the FT relays.

"Smaller oil and gas companies on Aim will remain under severe
pressure because fundraising in this environment will be testing,
and many will have already cut costs to the bone last year with
little room for more this year. We expect 2016 to be challenging
for the Aim companies," the FT quotes Ewan Mitchell, head of
analytics at Company Watch, as saying.

The FT notes that the energy industry has been hit hard over the
past 18 months, as the price of Brent crude has slumped from $115
a barrel to below $40 -- the lowest level in more than a decade.

Smaller oil and gas companies have fared particularly badly, with
many having taken on large amounts of debt as they aggressively
pushed for new finds while the oil price was still high, the
report says.

According to the FT, the Company Watch data show that the 104
companies' combined gross debt has remained stubbornly high, at
GBP2 billion at the time of these groups' last accounts -- a
similar level to the same time in 2014.

The data also highlight the broader stresses being placed on North
Sea operators listed outside of the UK, the report notes.



                            *********

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

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

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


                            *********


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

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

Copyright 2016.  All rights reserved.  ISSN 1529-2754.

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

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

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


                 * * * End of Transmission * * *