---

        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

          Thursday, January 14, 2016, Vol. 16, No. 009


                            Headlines


B E L G I U M

BELFIUS BANK: Moody's Raises Subordinated Debt Rating to Ba1


C R O A T I A

HUNGARIAN-CROATIA CHAMBER: May Go Bankrupt
ZAGREBACKA BANKA: Fitch Affirms 'bb' Viability Rating


G E R M A N Y

FC WINDENERGY: Chapter 15 Case Summary
GGP SCHALTUNGEN: Applies For Insolvency Proceedings
OGER TURK: Tour Operator Declares Insolvency


I C E L A N D

LANDSBANKI ISLANDS: Iceland Reimburses Britain for Icesave


I R E L A N D

C&C GROUP: To Close Cider Mill; 120 Jobs at Risk


I T A L Y

BANCA UBAE: Fitch Affirms 'BB' Long-term Issuer Default Rating
INTESA SANPAOLO: Fitch Assigns 'BB-(EXP)' Rating to Tier 1 Notes
INTESA SANPAOLO: S&P Assigns 'B+' Rating on Proposed AT1 Notes


M A L T A

FIMBANK PLC: Fitch Affirms 'BB-' IDR, Revises Outlook on to Pos.
SETANTA INSURANCE: MIBI Appeal on Ruling to Cover Claims Opened


N E T H E R L A N D S

MACINTOSH: Scapino Chain Declared Bankrupt
* NETHERLANDS: Corporate Bankruptcies Drop by 22% in 2015


P O L A N D

HAWE: Warsaw Court Appoints Compulsory Administrator
SKOK KUJAWIAK: Regulator to File Bankruptcy of Credit Union


P O R T U G A L

NOVO BANCO: Investors Seek Answers from ECB Over Bond Losses


R O M A N I A

ASTRA ASIGURARI: Liquidation Has Become Enforceable
ASTRA ASIGURARI: Liquidator Seeks to Sell Biz in its Entirety
COMPLEXUL ENERGETIC: Foreign Investor Mulls Buying Shares


R U S S I A

RVK-FINANCE: Fitch Assigns 'BB-' Rating to RUB3BB 2020 Bonds
VNESHECONOMBANK: Russia to Help Lender to Pay Creditors, FM Says


T U R K E Y

ARAP TURK: Fitch Affirms 'BB-' Issuer Default Ratings


U K R A I N E

METINVEST BV: Debt Moratorium Request Opposed by Bondholders


U N I T E D  K I N G D O M

ANGLO AMERICAN: Plans to Sell Brazilian Mine for $1 Billion
ANGLO AMERICAN: Completes Exit From Middle East Operations
DORKING FOOTBALL: Set to Launch Campaign to Avoid Insolvency
FALCON GROUP: Fitch Ups Long-term Issuer Default Rating to 'BB-'
HARBOURMASTER CLO 4: Reduced Liquidity No Effect on Fitch Ratings

HARVEST CLO V: Fitch Affirms 'BB-sf' Rating on Class Q Debt
HELLERMANNTYTON GRP: S&P Ups CCR to BB Then Withdraws Rating

* UK: 100,000 Firms Owed Money by Insolvent Cos., Individuals


X X X X X X X X

* EU to Consider China's Eligibility for Lower Import Tariffs


                            *********
=============
B E L G I U M
=============


BELFIUS BANK: Moody's Raises Subordinated Debt Rating to Ba1
------------------------------------------------------------
Moody's Investors Service has upgraded Belfius Bank SA/NV's long-
term deposit and senior unsecured debt ratings, as well as Belfius
Financing Company S.A's backed senior unsecured rating, to A3,
from Baa1.  The agency upgraded the bank's baseline credit
assessment (BCA) to baa3, from ba1, which reflects the bank's
significant progress in restoring its creditworthiness since the
start of 2012 when Dexia Bank Belgium was renamed Belfius.
Moody's also upgraded Belfius' and Belfius Financing Company S.A's
subordinated and junior subordinated debt ratings to Ba1 and
Ba2(hyb), from Ba2 and Ba3(hyb), respectively.  The bank's
counterparty risk (CR) assessment was also upgraded to
A2(cr)/Prime-1(cr), from A3(cr)/Prime-2(cr).  Other short-term
ratings remained unchanged.

Moody's also revised Belgium's Macro Profile upwards to Very
Strong, from Very Strong-

RATINGS RATIONALE

The upgrade of the bank's BCA to baa3 reflects its improved asset
quality, as a result of the downsizing of its legacy assets
inherited from the Dexia group, its strong capital base and its
strengthened liquidity position, primarily thanks to the near-
termination of the funding provided to Dexia group entities, asset
disposals and Belfius' ability to attract new deposits.  However,
Belfius' BCA remains constrained by its modest, although
improving, profitability, some high concentrations within its
investment portfolio, and the residual legacy portfolio which
continues to weigh on the bank's capital and liquidity.

Further supporting the upgrade in Belfius' BCA is its higher macro
profile, now Very Strong- (previously Strong+).  This reflects in
turn the spread of Belfius' exposures to a range of countries,
including Belgium, and the change in Moody's assessment of
Belgium's Macro Profile itself.

Moody's revision of Belgium's macro profile to Very Strong, from
Very Strong-, follows developments in the macroeconomic
environment which imply lower risks for the banking system.  This
reflects our view that (i) the country's structural strengths will
ensure its economic resilience over the next several years and
(ii) the structural measures taken by the authorities, notably to
suspend the automatic wage-indexation and reduce the tax burden on
labour, will have a gradual positive impact on competitiveness in
the future.

Belfius' A3 long-term deposit and senior unsecured debt ratings
reflect (1) the bank's baa3 BCA, (2) the two-notch uplift under
our Advanced LGF analysis resulting from the large volume of
deposits and senior long-term debt; and (3) government support
uplift of one notch, reflecting a moderate support probability
from the Belgian government (Aa3, Stable) to a bank which Moody's
considers to be systemic.

The outlook on Belfius' long-term deposit and debt ratings is
stable, reflecting Moody's view that the currently foreseen risks
to creditors, particularly those resulting from legacy assets,
high risk concentrations and a modest profitability, are already
incorporated in the bank's BCA.

The upgrade of Belfius' subordinated and junior subordinated debt
ratings to Ba1 from Ba2 and Ba2(hyb) from Ba3(hyb), respectively,
reflects the bank's higher BCA.  It also results from the
application of the Advanced LGF analysis, which reflects a high
level of loss-given-failure, given the small volume of debt and
limited protection from more subordinated instruments and residual
equity.

WHAT COULD CHANGE THE RATING UP/DOWN

Belfius' BCA and, thus, its senior ratings could be upgraded as a
result of (1) a reduction in risk concentrations in its investment
portfolio without materially affecting the bank's capital base;
(2) increased profitability; or (3) further significant
improvement in its liquidity position.  Belfius' deposit and
senior unsecured debt ratings could also be upgraded as a result
of a substantial decrease in loss-given-failure, should additional
subordinated debt issuance provide greater protection.

Factors that may exert negative pressure on Belfius' standalone
credit strength include (1) a deterioration in its liquidity
position that may result from difficulties in accessing stable
funding; (2) a significant increase in credit losses stemming from
the investment portfolio or the loan book; and/or (3) an inability
to generate sufficient profit to further strengthen its capital
base.  Belfius' deposit or senior unsecured debt ratings could
also be downgraded as a result of an increase in loss-given-
failure, should they account for a significantly smaller share of
the bank's overall liability structure, or become more exposed to
loss due to reduced subordination.

LIST OF AFFECTED RATINGS

Upgrades:

Issuer: Belfius Bank SA/NV

  Long-Term Deposit Rating, Upgraded to A3 stable from Baa1
   Positive

  Long-Term Deposit Program, Upgraded to (P)A3 from (P)Baa1

  Senior Subordinate Deposit Program, Upgraded to (P)Ba1 from
   (P)Ba2

  Senior Unsecured Regular Bond/Debenture, Upgraded to A3 stable
   from Baa1 positive

  Subordinate Regular Bond/Debenture, Upgraded to Ba1 from Ba2

  Junior Subordinated Regular Bond/Debenture, Upgraded to
   Ba2 (hyb) from Ba3 (hyb)

  Senior Unsecured Medium-Term Note Program, Upgraded to (P)A3
   from (P)Baa1

  Subordinate Medium-Term Note Program, Upgraded to (P)Ba1 from
   (P)Ba2

  Adjusted Baseline Credit Assessment, Upgraded to baa3 from ba1

  Baseline Credit Assessment, Upgraded to baa3 from ba1

  Long-Term Counterparty Risk Assessment, Upgraded to A2(cr) from
   A3(cr)

  Short-Term Counterparty Risk Assessment, Upgraded to P-1(cr)
   from P-2(cr)

Issuer: Belfius Financing Company S.A

  Backed Senior Unsecured Regular Bond/Debenture, Upgraded to A3
   stable from Baa1 positive

  Backed Subordinate Regular Bond/Debenture, Upgraded to Ba1 from
   Ba2

  Backed Junior Subordinated Regular Bond/Debenture, Upgraded to
   Ba2 (hyb) from Ba3 (hyb)

  Backed Senior Unsecured Medium-Term Note Program, Upgraded to
   (P)A3 from (P)Baa1

  Backed Subordinated Medium-Term Note Program, Upgraded to (P)Ba1
   from (P)Ba2

  Backed Junior Subordinated Medium-Term Note Program, Upgraded to
   (P)Ba2 from (P)Ba3

Outlook Actions:

Issuer: Belfius Bank SA/NV

  Outlook, Changed To Stable From Positive

Issuer: Belfius Financing Company S.A

  Outlook, Changed To Stable From Positive

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
published in January 2016.



=============
C R O A T I A
=============


HUNGARIAN-CROATIA CHAMBER: May Go Bankrupt
------------------------------------------
HINA reports that the Zagreb Commercial Court on Tuesday, Jan. 12,
published a notice calling on all creditors of the Hungarian-
Croatian Chamber of Industry and Commerce to within 45 days
propose the opening of bankruptcy proceedings in the Chamber with
a debt of more than HRK41,000.

According to the report, the notice also called on representatives
of the chamber to within 15 days submit a notarised declaration of
assets and liabilities and should they and creditors fail to
comply, the court will hand down a ruling on opening and closing
fast-track bankruptcy proceedings.

The Hungarian-Croatian Chamber of Industry and Commerce was set up
in 2006 to promote economic and trade interest and advance the
representation of interests of Hungarian companies doing business
in Croatia, HINA relays. The then Croatian Government and Croatian
Chamber of Commerce (HGK) supported the forming of the chamber,
adds the report.

Until 2013, the Croatian-Hungarian Chamber of Industry and
Commerce was led by the mayor of the Hungarian town of
Szentlorinc, Mark Gyorvari, and director Eva Almasi-Gatai, HINA
cites.


ZAGREBACKA BANKA: Fitch Affirms 'bb' Viability Rating
-----------------------------------------------------
Fitch Ratings has affirmed Zagrebacka Banka d.d.'s (ZABA) Long-
term foreign currency Issuer Default Rating (IDR) at 'BBB-',
Support Rating at '2' and Viability Rating (VR) at 'bb'. The
Outlook on the Long-term IDR is Negative.

KEY RATING DRIVERS

IDRS, SUPPORT RATING

ZABA's Long- and Short-term IDRs and Support Rating are based on
the potential support available from its ultimate parent,
UniCredit S.p.A. (UC; BBB+/Stable/bbb+). Fitch believes that UC
continues to have a strong propensity to support its Croatian
subsidiary given the importance of the central and eastern Europe
(CEE) region to its strategy, as well as the significant
operational integration of the subsidiary, and negative
implications of its default for the group. The agency would rate
ZABA one notch below UC's Long-term IDR, if not for the cap from
the Country Ceiling of Croatia (BBB-) reflecting transfer and
convertibility risks.

The Negative Outlook on ZABA's Long-term IDR reflects that on the
Croatian sovereign (BB/Negative) and therefore the potential for
the bank's ratings to be downgraded if the sovereign rating is
downgraded and the Country Ceiling is revised downward.

The planned change of ZABA's direct legal owner to UC from
UniCredit Bank Austria AG (BBB+/Stable/bbb+) has no impact on
Fitch's view of the parental support available to the Croatian
subsidiary.

VR

ZABA's VR is constrained by the operating environment and reflects
Fitch's view of the high correlation between the sovereign and the
bank's credit profile. The VR also reflects the bank's high stock
of impaired loans and muted lending activity, which have weighed
on its credit risk profile and profitability. The rating continues
to be supported by the bank's leading local market franchise,
strong funding and liquidity profile and adequate capitalisation.

The high correlation with the sovereign rating stems from ZABA's
high direct exposure to the sovereign, the broader operating
environment, and its marginal geographical diversification. At
end-3Q15 ZABA's (gross) credit exposure to the sovereign
(comprising treasury bills and government bonds, accounts with the
central bank, loans to state-owned entities) was equal to around
28% of total balance sheet assets and 210% of Fitch core capital
(FCC).

Asset quality remains weak, reflected by the share of impaired
loans in total gross loans of 16.4% at end-3Q15, compared with a
similarly high sector average of 17.1%. Problem loans were
concentrated in the commercial real estate and private individual
portfolios. The coverage of impaired loans with total reserves was
moderate of 60.9% at end-3Q15. However, the bank could absorb
additional impairment charges, if needed, through its pre-
impairment profits and the sizeable capital buffer.

In Fitch's view, the long period of recession in Croatia has
significantly amplified the credit risks faced by the bank,
evidenced by substantial borrower defaults and reduced collateral
valuations due to lower recovery expectations. Although impaired
loans seem to have peaked, we believe that a significant
improvement in loan quality would require a marked economy
recovery. The conversion of Swiss franc retail loans into euro in
2H15 could help prevent further deterioration of the retail
portfolio, but it is unlikely to cure already defaulted borrowers.

ZABA has substantial capital buffers, but these must be viewed
against its high stock of unreserved impaired loans (37% of FCC at
end-3Q15) and the challenging operating environment. A large one-
off loss from the Swiss franc loan conversion had only a moderate
negative impact on the bank's capital since it was largely
absorbed by operating profit generated in 9M15. At end-3Q15,
ZABA's FCC ratio dropped to 20.9% from 25.3% at end-2014, which
was mainly due to the dividend paid by the bank and its loan
portfolio expansion (mostly reflecting the acquisition of UC's
leasing subsidiary in Croatia).

ZABA's pre-impairment operating profitability has been relatively
resilient, which can be attributed to its strong market franchise,
large overall size (cost efficiencies) and extensive lending to
the broader public sector. The annualised 9M15 operating profit,
excluding the conversion-related loan impairment cost of net
HRK1.56 billion, fell by a modest 3.5% yoy. At end-3Q15 the
operating return on average assets stood at 1.1% (end-2014: 1.2%).

ZABA's funding profile is its key rating strength. The bank
sources most of its funding from customer deposits, while its
wholesale funding is obtained largely from the parent bank. The
stability of the deposit base is underpinned by the bank's
dominant deposit market share (around 26% at end-3Q15),
predominantly based on retail customers. The bank's liquidity
position is comfortable, but a significant part of the liquidity
buffer is held in Croatian government debt and treasury bills and
thus is sensitive to sovereign stress.

RATING SENSITIVITIES

IDRS, SUPPORT RATING

ZABA's IDRs could be downgraded if (i) Croatia's Country Ceiling
is revised down; or (ii) UC markedly changes its CEE strategy,
resulting in a lower expectation of parent support for its
subsidiaries in the region in general, and ZABA in particular. An
upgrade of ZABA's Long-term IDR is contingent on an upward
revision of the Country Ceiling, which is unlikely at present
given the Negative Outlook on the sovereign rating.

VR

The bank's VR is mainly sensitive to potential further
deterioration in the operating environment, including that
evidenced by a potential downgrade of the sovereign.

The rating actions are as follows:

Long-term IDR affirmed at 'BBB-'; Outlook Negative

Short-term IDR affirmed at 'F3'

Viability Rating affirmed at 'bb'

Support Rating affirmed at '2'



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


FC WINDENERGY: Chapter 15 Case Summary
--------------------------------------
Chapter 15 Petitioner: Holger Blumle

Chapter 15 Debtor: FC Windenergy GmbH
                   Paulinenstrasse 41
                   70178 Stuttgart
                   Stuttgart
                   Germany

Chapter 15 Case No.: 16-10056

Type of Business: To develop, construct (as general contractor),
                  operate, buy and sell wind energy plants,
                  including managing and representing other
                  companies.

Chapter 15 Petition Date: January 11, 2016

Court: United States Bankruptcy Court
       District of Delaware (Delaware)

Judge: Hon. Mary F. Walrath

Chapter 15 Petitioner's Counsel: Adam Hiller, Esq.
                                 HILLER & ARBAN, LLC
                                 1500 North French Street
                                 2nd Floor
                                 Wilmington, DE 19801
                                 Tel: (302) 442-7677
                                 Fax: 302-442-7045
                                 Email: ahiller@hillerarban.com

Estimated Assets: Not Indicated

Estimated Debts: Not Indicated


GGP SCHALTUNGEN: Applies For Insolvency Proceedings
---------------------------------------------------
Evertiq reports that the PCB manufacturer from Osterode am Harz,
GGP Schaltungen GmbH is insolvent. Management and insolvency
administrator are confident that the company can be saved, the
report says.

On Jan. 4, 2016, the company applied for insolvency proceedings to
start, Evertiq discloses. "GGP continues to produce and deliver
without restrictions and our customers and suppliers have already
assured us of their full support", Evertiq quotes Thomas Peters,
CEO of GGP, as saying on Jan. 7, 2016.

"We regret to inform you that we have requested the opening of
insolvency proceedings at the local court in Osterode, due to
imminent insolvency. The very extensive (and inevitable)
investments into the modernisation of our machine park have
ultimately let to debt service, which we were unable to generate
against the low-margin competition in Asia," the company, as cited
by Evertiq, said in a customer information letter sent out on Jan.
4, 2016.

"We are pleased with the fact that our investment implementation
is almost complete. Our company sustainably generated positive
EBITDA and we are very confident that the GGP will be able to
restructure successfully during the insolvency proceedings. In
order to achieve this goal as soon as possible, we dependent on
your support. For this reason we have issued the insolvency
petition relatively early."


OGER TURK: Tour Operator Declares Insolvency
--------------------------------------------
FVW reports that Vural Oger's original tour operator Oger Turk Tur
has declared insolvency just days after sister company V.O.
Travel.

Oger Turk Tur, which specialised in flight-only sales to Turkey to
a customer base of ethnic Turkish people resident in Germany,
declared insolvency on January 4 and stopped trading immediately,
FVW says.

According to FVW, the tour operator sold just over one million
one-way airline tickets in 2015 but came under pressure as
carriers increasingly sold tickets direct to consumers. In
December, leisure airline Sun Express ended its cooperation with
the company due to differences over payments, the report relates.

Oger Turk Tur was founded by Vural Oger in 1972 and formed the
basis for his tourism group comprising Oger Tours (later sold to
Thomas Cook), the Majesty Hotels in Turkey and an incoming agency,
the report discloses. According to the most recently published
accounts, OTT made a loss of nearly EUR4 million on turnover of
EUR160 million in 2012/13, says FVW.

On December 29, V.O Travel, the Turkey tour operator launched by
Oger two years ago, declared itself insolvent and stopped trading
along with his incoming agency Holiday Plan, FVW reports.

FVW notes that the insolvencies were mostly caused by EUR16
million worth of debts owed to Majesty Hotels by insolvent Russian
tour operator Teztour and several other Russian firms. In
addition, V.O. Travel remained behind its targets in 2015 and
bookings for this year had started badly.

Meanwhile, it has emerged that about 2,200 customers have been
impacted by the collapse of V.O. Travel, FVW reports. Some 300
guests currently holidaying in Turkey will be able to complete
their holidays as planned, and Oger Tours has been contracted by
the insolvency administrator to care for these guests, including
hotel payments and airport transfers, says FVW.

According to FVW, insurers Zurich Versicherung will have to refund
some 2,000 customers their advance bookings for summer 2016,
mostly deposits. Financial claims by travel agents and other
creditors will be handled by the tour operator's insolvency
administrator.

Vural Oger is best known as the founder of Oger Tours, the Turkey
tour operator that he sold to Thomas Cook in 2011. In January
2014, he returned to the German market with the launch of V.O.
Travel as a new specialist tour operator for Turkey holidays.



=============
I C E L A N D
=============


LANDSBANKI ISLANDS: Iceland Reimburses Britain for Icesave
----------------------------------------------------------
AFP reports that Iceland has fully reimbursed Britain for the
collapse of the Icesave bank in 2008, which left Dutch and British
account holders empty-handed.

"Remember Icesave?" Iceland's foreign ministry wrote on Twitter,
adding a link to an article about the reimbursement on the
English-language website of the Icelandic daily Morgunbladid, AFP
says.

AFP notes that hundreds of thousands of British and Dutch savers
lured by high interest rates lost deposits worth billions of euros
after the privately-owned Landsbanki bank, the parent company of
Icesave, and other financial institutions went bust when Iceland's
financial system collapsed in 2008.

The Icelandic state refused to cover the losses of the bank's
foreign clients. London and The Hague were left to do so, and they
subsequently sent the bill to Reykjavik, AFP relates.

AFP says long, drawn-out negotiations between the governments
ensued, and two referendums were held in Iceland on the issue
where voters rejected reimbursement proposals.

Iceland then won a European Free Trade Association court case on
the matter, AFP states.

Ultimately, Iceland agreed to pay back an amount to which it felt
British and Dutch savers were entitled, the report says.

LBI, the group managing Landsbanki's estate, has now said it had
reimbursed all of the "priority" claims, meaning those of the
British government and the funds that acquired LBI's debt to the
Dutch central bank, according to AFP.

AFP says the final installment paid to Britain totaled
GBP374 million, according to LBI. Prior to that payment, the
Financial Services Compensation Scheme had reclaimed GBP3.82
billion from the Landsbanki estate.

According to AFP, the affair soured relations between Reykjavik
and London, with Iceland particularly galled by the British
government's decision to invoke anti-terrorism legislation to try
to recoup deposits.

A nation of just 320,000 people, Iceland eventually had to seek an
IMF bailout to extricate itself from its financial hole.
Having endured the worst financial crisis in its history, the
country finally returned to growth in 2011, boosted by tourism and
exports, AFP states.

Landsbanki Islands hf, also commonly known as Landsbankinn in
Iceland, is an Icelandic bank.  The bank offered online savings
accounts under the "Icesave" brand.  On October 7, 2008, the
Icelandic Financial Supervisory Authority took control of
Landsbanki and two other major banks.

Landsbanki filed for Chapter 15 protection on Dec. 9, 2008
(Bankr. S.D. N.Y. Case No.: 08-14921).  Gary S. Lee, Esq., at
Morrison & Foerster LLP, represents the Debtor.  When it filed
for protection from its creditors, it listed assets and debts of
more than US$1 billion each.



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


C&C GROUP: To Close Cider Mill; 120 Jobs at Risk
------------------------------------------------
BBC News reports that a cider mill is set to close with its
production being moved to the Republic of Ireland, its owners have
said.  The Somerset mill, owned by Dublin-based C&C Group whose
brands include Gaymers and Blackthorn, has 127 staff, BBC News
says.

"This is a devastating blow for Shepton Mallet, the job losses are
significant and that will be my first concern," the report quotes
Wells MP James Heappey as saying.

Although the mill will close, fruit pulping will continue and
apples will be still be sourced from local farmers, BBC News says.

According to BBC News, the trade union Unite has criticised the
closure, describing it as "disgraceful, discourteous and
Dickensian".

BBC News quotes Unite regional coordinating officer, Steve Preddy
as saying that: "It was only this afternoon [Jan. 12]
-- hours later -- that the shop stewards and workers were informed
that the plant was closing.

"This is an unacceptable way to behave in the workplace in 2016.
"We know our members work for a Dickensian and inflexible
employer, which puts company profit for shareholders and company
directors first and foremost."

The mill currently has two full-time staff for its fruit pulping
operation and up to 15 seasonal staff, the report discloses.

According to the report, the apples are sourced from around 70
growers in Somerset and Hereford, with about 40% of fruit grown in
Somerset. Once the fruit is pulped it will be sent to Ireland to
make cider, the report relates.

The mill has been operating since 1770 and is synonymous with
cider production in the county but is expected to close in late
summer, the union, as cited by BBC News, said.

A closure date has not been confirmed, BBC News adds.



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


BANCA UBAE: Fitch Affirms 'BB' Long-term Issuer Default Rating
--------------------------------------------------------------
Fitch Ratings has affirmed Banca UBAE's (UBAE) Long-term Issuer
Default Rating (IDR) at 'BB' with Stable Outlook. The Viability
Rating (VR) has also been affirmed at 'bb'.

KEY RATING DRIVERS

IDRS AND VR

UBAE's IDRs are driven by the bank's standalone strength, as
expressed in the VR. The ratings are constrained by some
dependence of its business model on deposit funding from its
majority shareholder, Libyan Foreign Bank (LFB). The ratings
primarily reflect UBAE's niche trade finance franchise and small
size. The ratings also take into account the bank's exposure
towards potentially volatile countries and some reliance on
certain businesses and clients, which result in high
concentration, a feature which is not unusual for a specialist
trade finance bank.

Fitch views UBAE's risks as adequately controlled and, as a
result, its asset quality is in line with other international
trade finance banks rated by the agency. UBAE's problem loans in
relation to its business volumes (1.8% of on- balance-sheet
exposure at end-September 2015) is low, due to the bank's long-
standing relationships with its clients, which include entities
related to the Libyan Central Bank, which is LFB's owner, for the
long-term financing of large infrastructure as well as large
Italian exporters.

UBAE's funding is concentrated, with a significant part provided
by the parent. Funding provided by LFB to finance UBAE's
commercial activities has been fairly stable over time. On the
other hand, the liquidity received from LFB in the form of
deposits can fluctuate quite significantly, depending on LFB's
needs to invest in its own country or cashflow generation from
events such as the opening of a new oil well in Libya. UBAE
invests LFB's liquid resources in money markets, typically with
short-term maturities and matching currency. Overall, UBAE's
liquidity is adequate, given the self-liquidating nature of its
short-term activities and large money market placements.

UBAE's capitalisation is acceptable for its business model and
concentration risk. However, its capital base remains small in
absolute terms, limiting its ability to diversify its business and
making it vulnerable to shocks.

Revenue generation from UBAE's commercial business has been
broadly stable over the years, while the proceedings from its
interbank investments or securities transactions tend to be more
volatile. Similarly to most peers, the cost base is high and
ability to make efficiencies is limited.

The Stable Outlook reflects Fitch's expectation that UBAE will
continue to operate with an unchanged risk appetite and to benefit
from ordinary funding support from LFB.

SUPPORT RATING

Fitch believes that in case of need, UBAE would first look to its
majority shareholder, LFB, for extraordinary support. LFB has over
time shown a high propensity to support UBAE, as it considers the
bank important to its international strategy. However, UBAE's
Support Rating of '5' reflects Fitch's view that LFB's ability to
provide support cannot be relied upon given the uncertain economic
and political environment in Libya.

RATING SENSITIVITIES

IDRS AND VR

The concentration of UBAE's portfolio means that the ratings are
sensitive to material deterioration in the quality of one or more
of its counterparties. Given the bank's dependence on the parent
for funding, the ratings are also sensitive to an unexpected
withdrawal of such funding, threatening UBAE's liquidity profile
and challenging its business model. This could happen for example
if a new regime takes over in Libya, including control of central
bank operations (LFB is owned by the Central Bank of Libya).

An upgrade of UBAE's ratings is unlikely given its fairly small
size, its concentrated operations in potentially volatile markets
and funding dependence. Greater diversification of UBAE's funding
profile, a material capital increase and significant improvements
in Libya's operating environment would bring upside rating
potential.

SUPPORT RATING

UBAE's Support Rating is sensitive to changes in Fitch's
assumptions regarding potential support from LFB and may be
upgraded if Fitch believes that some degree of support could come
from the LFB, which would, however, require a certain degree of
access to the LFB as well as a sufficient improvement of the
economic and political environment in Libya.

The rating actions are as follows:

Long-term IDR: affirmed at 'BB'; Outlook Stable
Short-term IDR: affirmed at 'B'
Viability Rating: affirmed at 'bb'
Support Rating: affirmed at '5'


INTESA SANPAOLO: Fitch Assigns 'BB-(EXP)' Rating to Tier 1 Notes
----------------------------------------------------------------
Fitch Ratings has assigned Intesa Sanpaolo S.p.A.'s (IntesaSP;
BBB+/Stable/F2/bbb+) upcoming issue of perpetual EUR additional
Tier 1 notes an expected rating of 'BB-(EXP)'.

The assignment of the final rating is contingent on receipt of
final documentation confirming to information already received.

KEY RATING DRIVERS

The notes are rated five notches below IntesaSP's 'bbb+' Viability
Rating (VR). Two notches are for loss severity relative to senior
unsecured creditors and three notches are for incremental non-
performance risk relative to IntesaSP's VR. The notching for non-
performance risk reflects the instruments' fully discretionary
interest payment, which Fitch considers the most easily activated
form of loss absorption. Under the terms of the notes, the issuer
will not make an interest payment (in full or in part) if it has
insufficient distributable items. The notes have fully
discretionary interest payments and are subject to write-down on
breach of a 5.125% consolidated or unconsolidated common equity
Tier 1 (CET1) ratio.

IntesaSP's transitional Basel III CET1 ratio at September 30, 2015
of 13.4% provides it with a buffer of over EUR23 billion from the
5.125% CET1 ratio trigger. However, Fitch notes that non-
performance in the form of non-payment of interest could possibly
be triggered before this, for example if the bank breaches its
Pillar 2 CET1 capital requirement of 9.5% as established by the
European Central Bank. The current CET1 ratio provides it with a
buffer of over EUR11 billion from this requirement.

The principal write-down can be reinstated and written up at full
discretion of the issuer if a positive net income (unconsolidated
or consolidated) is recorded. Fitch expects to assign 50% equity
credit to the securities, reflecting the agency's view that the
5.125% trigger is not so distant to the point of non-viability,
which limits the instrument's "going concern" characteristics. It
also reflects the notes' full coupon flexibility, their permanent
nature and the subordination to all senior creditors.

RATING SENSITIVITIES

The rating of the securities is sensitive to a change in
IntesaSP's VR. The rating is also sensitive to a change in the
notes' notching, which could arise if Fitch changes its assessment
of their non-performance relative to the risk captured in
IntesaSP's VR. This could reflect a change in capital management
or flexibility or an unexpected shift in regulatory buffers and
requirements, for example.


INTESA SANPAOLO: S&P Assigns 'B+' Rating on Proposed AT1 Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'B+' long-term issue rating to the proposed perpetual additional
Tier 1 (AT1) capital notes to be issued by Intesa Sanpaolo SpA
(BBB-/Stable/A-3).  The rating is subject to S&P's review of the
notes' final documentation.

In accordance with S&P's methodology on hybrid capital, S&P is
assigning the proposed AT1 notes a 'B+' rating, four notches below
the issuer credit rating (ICR) on Intesa Sanpaolo, in line with
S&P's rating on the bank's inaugural AT1 in September 2014.  S&P
usually derives the hybrid rating for banks based in Italy by
notching down from the bank's stand-alone credit profile (SACP).
That said, as the ICR on Intesa Sanpaolo is currently lower than
its SACP, S&P derives the hybrid rating by notching down from the
lower of the two.

As such, S&P calculates this four-notch difference as:

   -- One notch to reflect subordination risk.
   -- Two additional notches to take into account the risk of non-
      payment at the full discretion of the issuer and its likely
      inclusion in Tier 1 regulatory capital.
   -- One notch as the instruments allow for full or partial
      temporary write-down.

S&P does not apply any additional notching because it do not
consider the proposed 5.125% mandatory conversion trigger as a
going-concern trigger.

In S&P's view, the risk of nonpayment is mitigated by its
expectation that the bank will maintain resilient profitability
over the next two years.  S&P also observes that Intesa Sanpaolo's
common equity Tier 1 was 13.4% as of September 2015.

S&P intends to assign "intermediate" equity content to the notes,
once the regulator approves them, for inclusion in the bank's
regulatory Tier 1 capital.  The proposed instruments meet the
conditions for intermediate equity content under S&P's criteria as
they are perpetual, with a call date expected to be five or more
years from issuance.  In addition, they do not contain a coupon
step-up and have loss-absorption features on a going-concern basis
due to the bank's flexibility to suspend the coupon at any time.



=========
M A L T A
=========


FIMBANK PLC: Fitch Affirms 'BB-' IDR, Revises Outlook on to Pos.
----------------------------------------------------------------
Fitch Ratings has revised the Outlook on Malta-based Fimbank Plc's
(FIM) Long-term Issuer Default Rating (IDR) to Positive from
Stable and affirmed the IDR at 'BB-'. At the same time, Fitch has
affirmed FIM's Short-term IDR at 'B', Viability Rating (VR) at
'bb-' and Support Rating (SR) at '5'.

Fitch has withdrawn the Support Rating Floor of 'No Floor', which
applies to sovereign support only, because we believe that any
support for FIM would be institutional from its owners rather than
from the Maltese sovereign where it is based.

The revision of the Outlook reflects Fitch's view that FIM over
the next two years is likely to be closely integrated into Kuwait-
based Burgan Bank (A+/Stable/bb). As a consequence, due to
stronger institutional support factors, FIM's IDRs could
potentially be upgraded by more than one notch, reflecting
Burgan's ability and propensity to support FIM.

KEY RATING DRIVERS

IDRs and VR

FIM's VR and IDRs are driven by its niche trade finance focus and
expertise, with business volumes generated in a number of emerging
markets, including the Middle East and North Africa. They also
reflect weak financial metrics, particularly profitability, asset
quality and capitalisation. FIM's ultimate parent is Kuwait
Projects Company Holding K.S.C.P. (KIPCO) group, via its banking
subsidiaries, Bahrain-based United Gulf Bank (61.2% stake) and
Burgan Bank (Burgan; 19.72%). While FIM's integration into the
group has been slow to date, the relationship with KIPCO/Burgan is
strong.

FIM's Fitch core capital/weighted risks ratio was 13.4% at end-
June 2015, which we view as weak in the context of high level of
unreserved impaired assets and high asset concentration. Most of
FIM's credit deterioration was from factoring assets in India and
Russia. Fitch expects asset quality pressures to decrease given
the adoption of a stronger write-off policy as well as the
centralisation of risk controls in line with Burgan. We also
expect FIM's revenue generation to improve with access to cheaper
funding from Burgan. However, FIM's profitability will remain weak
due to its high cost structure and sizeable impairment charges.

The Positive Outlook reflects Fitch's belief that FIM's will be
integrated and be supported, if required, by Burgan in the
foreseeable future. Looking at KIPCO's past acquisitions, Fitch
believes that FIM will gradually play a key and integral role in
the Burgan group.

KEY RATING DRIVERS

SUPPORT RATING

FIM's SR of '5' reflects Fitch's view that in case of need the
bank would first look for support from its direct shareholders.
While there is a possibility of support from Burgan, Fitch
believes that such support cannot be relied upon given the limited
integration of FIM with the group at present.

RATING SENSITIVITIES

IDRS, VR AND SR

An upgrade of the VR would primarily come from a substantial
recovery of asset quality and earnings, and/or evidence of
improved risk controls. Conversely, FIM's VR would be downgraded
if asset quality continues to weaken materially, putting earnings
and capital under further significant pressure. If the dominant
role of KIPCO in FIM's shareholding means strategic changes that
involve, for example, an even higher risk profile and/or weaker
capital and leverage, there would also be downward rating
pressure. As long as FIM is not more integrated into Burgan, any
rating action on the VR would be reflected on the IDR.

FIM's IDR and SR could potentially be upgraded by more than one
notch if Fitch believes that support from its owners becomes more
likely, for example if it becomes more closely integrated into
Burgan.


SETANTA INSURANCE: MIBI Appeal on Ruling to Cover Claims Opened
---------------------------------------------------------------
Aodhan O'Faolain at The Irish Times reports that an appeal by the
Motor Insurance Bureau of Ireland (MIBI) against a High Court
ruling that it must pay out on outstanding claims following the
collapse of the Setanta Insurance Company in 2014 has opened
before the Court of Appeal.

The Irish Times relates that the MIBI is appealing against Mr
Justice John Hedigan's finding that it was liable to pay out in
respect of claims against persons who were insured with Setanta at
the time of its liquidation.

The report notes that the case has important implications for
motor insurance premiums as well as parties involved in claims
concerning Setanta.  Following Setanta's liquidation, some 1,750
claims by and against Setanta policyholders remained in existence,
The Irish Times states.

According to The Irish Times, the High Court was asked to
determine whether the MIBI -- operated under the terms of an
agreement between the Government and companies underwriting motor
insurance in Ireland to deal with claims related to uninsured
drivers -- or the Insurance Compensation Fund, which had been used
to cover claims of insolvent insurance companies, were liable for
the claims.

The Irish Times relates that Paul Gallagher SC, for the MIBI, said
the case raised "a very important issue" concerning the
liabilities arising from the insolvency of one of its members.

The High Court ruling has created "very significant difficulties"
for the MIBI and its members which were now caught up in the
insolvency of a fellow member of the MIBI, counsel said, the
report relays.

The effect of the High Court judgment was that members of the
MIBI, made up of more than 40 insurance companies operating in the
State, were now "co-guarantors" of rival firms but had no
entitlements to any information about those prior to the
insolvency, Mr. Gallagher, as cited by The Irish Times, said.

The Irish Times notes that the MIBI agreement did not deal with an
issue as fundamental as the issue of insolvency of one of its
members, he said.  According to the report, the High Court had
decided a phrase in one particular sub-clause in the agreement
meant the MIBI had a liability to pay out in respect of claims
against persons insured by an insurer that has become insolvent.

Mr. Gallagher said this interpretation was "too narrow" in the
context of the entire MIBI agreement, the High court's reliance on
this "hidden" sub-clause rendered the judgment incorrect and it
should be set aside, the report relays.

According to The Irish Times, Mr. Gallagher said another effect of
the High Court's decision meant the MIBI could potentially seek
judgment against any Setanta policy-holders found liable as a
result of a claim the MIBI had to pay out on.

The report says the appeal is opposed by the Law Society which,
following Setanta's collapse, wrote to the MIBI stating solicitors
had been inundated with queries from customers as to the
consequences of the liquidation.

Initially the proceedings were brought by the accountant of the
Courts of Justice who has statutory responsibility for
administering the Insurance Compensation Fund. The High Court
subsequently directed the Law Society act as the claimant while
the MIBI should be the respondent. The accountant of the Courts of
Justice adopted a neutral position in the proceedings, according
to The Irish Times.

Setanta Insurance was a Maltese-registered insurer.  It provided
private and commercial motor insurance policies to Irish
consumers and sold exclusively through 230 brokers.

A liquidator was appointed in April 2014 to Setanta and its
policies were cancelled by the liquidator on May 29, 2014,
according to The Irish Times. Setanta was a member of the MIBI.

The MIBI, which covers the cost of claims related to uninsured
drivers claimed through levies imposed on customers, argued it did
not have to satisfy awards against policy-holders where the
insurer was unable to pay all or part of the award because of
insolvency, The Irish Times says.



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


MACINTOSH: Scapino Chain Declared Bankrupt
------------------------------------------
DutchNews.nl reports that shoe retailer Scapino was declared
bankrupt Friday, Jan. 8, making it the last part of the Macintosh
retail group to go bust.

According to the report, the official receivers said in a
statement they and the banks are in talks with a number of
companies and hope to realize a restart "as soon as possible."
The 200 shops remain open while takeover talks continue,
DutchNews.nl relays.

The Macintosh holding company was declared bankrupt at the end of
last year and its Dolcis, Invito, Manfield, PRO Sport and Steve
Madden chains have since gone bust as well, according to the
report.

The group has some 500 stores in the Netherlands, Belgium and
Luxembourg and a workforce of 5,500, cites the report.

John Huppertz & Ben Meijs have been named administrators,
according to Reuters.


* NETHERLANDS: Corporate Bankruptcies Drop by 22% in 2015
---------------------------------------------------------
DutchNews.nl, citing credit agency Graydon, relays that 6,303
companies went bankrupt in Netherlands in 2015, a drop of 22% from
that of 2014.

Most companies that closed down were involved in wholesaling and
the retail trade, Graydon said, according to the report.
Financial services firm and construction companies were in second
and third place, the report cites.


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


HAWE: Warsaw Court Appoints Compulsory Administrator
----------------------------------------------------
telecompaper reports that Hawe has announced the Warsaw district
court has appointed a compulsory administrator for the company.
This follows the company's filing for protection from creditors
and bankruptcy proceedings in December 2015. Hawe had previously
expected a temporary supervisor of its assets while it attempted
to renegotiate debts at the parent company Hawe SA and its
subsidiary Hawe Telekom.

Hawe is a Polish telecommunication company and a provider of
wholesale fibre and network services. Most recently, its
subsidiary Open Regional Broadband Networks (ORSS) completed work
in December on the Warmia-Masuria segment of the Eastern Poland
broadband network, a public-private partnership.


SKOK KUJAWIAK: Regulator to File Bankruptcy of Credit Union
-----------------------------------------------------------
Marta Waldoch of Bloomberg News reports that Poland's financial
market regulator noted in its Web site that it plans to file for
the bankruptcy of SKOK Kujawiak union after restructuring
attempts.

The Kujawiak bankruptcy will follow that of two other unions, SKOK
Wolomin and SKOK Wspolnota, Bloomberg relates.

This bankruptcy will also put a further strain on the earnings of
Polish banks.  The bankruptcy of the first two credit unions has
triggered $800 million payouts to clients from the banking
guarantee fund, Bloomberg discloses.

                        SKOK Wyszynski

Bloomberg adds that the regulator is dealing with another troubled
credit union. It is looking for a buyer by Jan. 18 for SKOK
Wyszynski in a final resort to save the company, the report
discloses. Six other unions have been placed under administration,
according to the regulator's spokesman Maciej Krzysztoszek, the
report says.



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


NOVO BANCO: Investors Seek Answers from ECB Over Bond Losses
------------------------------------------------------------
Thomas Hale and Martin Arnold at The Financial Times report that
a capital markets lobby group is writing to the European Central
Bank to seek clarification over the writedown of bonds in
Portugal's Novo Banco, as the investor backlash against the way
losses are imposed gathers pace.

The FT relates that the Portuguese central bank at the end of
December moved five senior Novo Banco bonds to a "bad bank", which
had been set up to hold distressed assets in 2014.

According to the FT, the move to wipe out previously protected
bonds is one of the clearest examples of an uncertain new era for
global bank bondholders.  The FT says regulators want bond holders
to share the risk of banks failing alongside equity investors,
rather than relying on taxpayers. This involves writing down the
value of bonds that fund banks, known as "bailing in" bond
investors when institutions fail.

The FT says the International Capital Market Association, which
acts on behalf of market participants, is requesting clarification
around bail-in from the ECB, as well as pointing to the volume of
non-performing loans on the balance sheets of European banks.

The group's complaints follow on from outrage last week from major
investors including Pimco, over the way in which the Novo Banco
bonds were selected, with many domestic holders of the bank's
bonds being spared losses, relates the FT.

"There's a very strong link between the inherent financial
condition of Europe's banks and the probability of bail-in," the
FT quotes Daniel Sarp, a fixed income investor and member of an
ICMA working group on bail-in, as saying. "The weaker the balance
sheet condition, the higher the probability. Our concern is that
investors can't price risk."

Over recent months, peripheral Europe has set the scene for the
new regulatory landscape, with major credit events in Greece,
Italy and Portugal, the FT states. The developments have renewed
focus on the legacy of non-performing loans held by peripheral
banks.

The FT notes that an International Monetary Fund report last year
said non-performing loans in the EU stood at about EUR1 trillion
or more than 9 per cent of gross domestic product at the end of
2014. ICMA's bail-in working group suggests the ratio in the
eurozone could be as high as 15 per cent, taking into
consideration the latest public data from the European Banking
Authority and ECB, the FT relates.

"Why should we, as investors, have to pay for seven years of bad
loan overhang?" Mr Sarp, as cited by the FT, said. "We're being
asked to be the ministry of finance."

The FT says that this week, a report by Fitch Ratings suggested
that the "asset quality divide" between northern and southern
Europe persists.

"EU banks' stubbornly high impaired loan stock is partly due to
various cultural and legal incentives that favour retaining loans
on banks' books, working through cyclical challenges with their
customers rather than seizing collateral and writing off loans
more swiftly," the FT quotes Fitch as saying.

ICMA launched a working group to address bail-in 18 months ago,
the FT recalls. It has previously written to the ECB over
confusion surrounding the swath of new regulations affecting bank
bond investors, which require banks to issue debt that is
subordinated to depositors, according to the FT.

The FT notes that markets and bankers are increasingly concerned
over the difficulty of identifying the so-called "point of non-
viability", at which banks are put into resolution by regulatory
authorities, and losses start being imposed. Furthermore, the
balance of regulatory power between the ECB and national
regulators has sparked confusion among major investors.

"We have investors saying they won't buy senior unsecured, they
want to reduce their exposure," the FT quotes Tim Skeet, chairman
of the ICMA group on bail-in, as saying. "A lot of people have got
in touch with us and said 'we're unhappy, can we join the group?'"

As reported in the Troubled Company Reporter-Europe on Jan. 6,
2016, Moody's Investors Service has downgraded to Caa1 from B2 the
senior debt and long-term deposit ratings of Portugal's Novo
Banco, S.A. and its supported entities.  This follows the Bank of
Portugal's (BoP) announcement on Dec. 29, 2015, that it had
approved the recapitalization of Novo Banco by transferring
EUR1,985 million of senior debt back to Banco Espirito Santo,
S.A. (BES unrated).  The outlook on Novo Banco's deposit and
senior debt ratings is now developing.

The rating agency has also downgraded to C from B2 (on review for
downgrade) the rating on Novo Banco's senior debt securities
transferred to BES (ISINs PTBEQBOM0010, PTBENIOM0016,
PTBENJOM0015, PTBENKOM0012 and PTBEQKOM0019).  Subsequently,
Moody's will withdraw the ratings on these senior bonds.  The
downgrade and withdrawal have been triggered by the transfer of
these senior debt instruments to BES, a bank which is being
liquidated and for which the BoP has asked the European Central
Bank (ECB) to revoke its banking license.

At the same time, Moody's has downgraded to B2(cr) from B1(cr)
Novo Banco's counterparty risk assessment (CRA) and affirmed its
short-term deposit and senior debt ratings at Not-Prime and
short-term CRA at Not Prime(cr).  Novo Banco's baseline credit
assessment (BCA) was also confirmed at caa2.

This rating action concludes the review for downgrade on Novo
Banco's ratings, which was initiated on Nov. 18, 2015.

Novo Banco's Ba1 rated senior bonds, which are guaranteed by the
Republic of Portugal (Ba1 stable), are unaffected by the rating
action.



=============
R O M A N I A
=============



ASTRA ASIGURARI: Liquidation Has Become Enforceable
---------------------------------------------------
The Magyar Nemzeti Bank (MNB) has been notified by the Romanian
Financial Supervisory Authority (ASF) that the liquidation of
Astra Insurance Company or ASTRA ASIGURARI had commenced.

MNB released this statement dated Jan. 12, 2016:

Upon the inquiry of the Magyar Nemzeti Bank (MNB), the ASF
informed the MNB on January 7, 2016 that the liquidation of
Societatea Comerciala de Asigurare-Reasigurare Astra S.A. (Astra
Insurance Company) had commenced even though, despite Romanian
statutory regulations, the relevant court ruling had not been
published in the official Romanian journal yet (it should have
been published within 20 days of the court ruling, followed by a
7-day period when appeals may still be lodged against the ruling).
As such, the ruling is not definitive, and the liquidator has not
sent information to potential creditors either.

According to the information published on December 22, 2015 on the
website of the insurance guarantee fund (FGA) operating in
conjunction with the Romanian Financial Supervisory Authority
(ASF), creditors may submit their claim admittance requests to the
liquidator against the insurance company until January 18, 2016.
This is consistent with the information published on the website
of the Romanian Astra Insurance Company. The appointed liquidator
is KPMG Restructuring SPRL (contact details: Bucharest, DN1,
Ploiesti-Bucharest Street, no. 69-71. 1st District, tel/fax: +40
372 377 700).

KPMG Restructuring SPRL is to verify the claims and publish the
preliminary Table of Claims by January 29. The deadline for
finalising the list of creditors is February 24, with the first
creditors' meeting held on the same day.

In the context of the liquidation, the January 18 submission
deadline essentially affects Hungarian creditors with non-
insurance contracts and clients with non-motorist third-party
liability (MTPL) insurance claims --  e.g. home, travel or casco
insurance claims -- or premium claims exceeding 450,000 lei
(around HUF 30 million). This is because in the case of non-MTPL
claims, the portion above 450,000 lei is not covered either by the
Hungarian, or by the Romanian guarantee fund. Pursuant to an EU
directive, clients may lodge creditor's claim in Hungarian as
well; however, the title of such reports is mandatory ("Claim
Admittance Request") and has to be included in Romanian ("Cerere
de admitere a creantei").

The indemnification provided by the Romanian and the Hungarian
guarantee funds is to be separated from the liquidation procedure.
Consumers with damage claims against the MTPL policyholders of
Astra's Hungarian Branch Office are still entitled to report their
justified MTPL claims to the Indemnity Account of the Association
of Hungarian Insurance Companies (MABISZ) for reimbursement. Once
the court ruling ordering the liquidation procedure becomes
definitive and the Hungarian and Romanian guarantee funds reach an
agreement (the latter of which, in the MNB's understanding, is
imminent), outstanding justified MTPL claims will be settled by
the MABISZ Claims Guarantee Fund.

Other, non-MTPL insurance claims and any unearned insurance
premiums paid by Astra policyholders shall be reimbursed by the
FGA. The affected policyholders may submit a written request to
that effect to the FGA for a period of 90 days after the ruling on
the liquidation procedure becomes definitive. The relevant forms
are available on the website of the Hungarian Branch Office of
Astra Insurance Company. The MNB has requested the Romanian
Financial Supervisory Authority to permit the submission of
requests in the Hungarian language as soon as possible, and
received a positive response in this regard. At the same time,
there is no information on whether the FGA will appoint a claims
adjustment representative in Hungary to ease the indemnification
process.

Thanks to the repeated calls of the MNB, the vast majority of
Astra's former 169,000 Hungarian MTPL policyholders have already
switched to other insurance companies. Pursuant to a legislative
amendment adopted last year, remaining Astra policyholders --
around 16,000 MTPL clients --  may terminate their MTPL policies
by simply recontracting with another insurance company (i.e. they
need not terminate their existing contracts with Astra Insurance
Company). Indeed, this is in their best interest, given that Astra
Insurance Company is unable to render further services (e.g. it is
unable to issue premium receipts or green cards, book premium
payments or enter data to the claims history records).

On January 7, 2016, the ASF informed the MNB that the liquidator
of Astra Insurance Company would consider the termination of all
Hungarian MTPL policies. Analyses in this regard are still in
progress. Under Romanian law, the liquidator has 3 months to carry
out such termination after the commencement of the liquidation on
December 3.

For the protection of Hungarian consumers, the MNB -- which is not
the supervisory authority of Astra Insurance Company --  provides
information on its own website continuously with respect to the
indemnification of clients of the Romanian Astra Insurance Company
and parties with damage claims against it. Up-to-date information
about the actions to be taken in relation to insurance policies
and the relevant rules are posted on the websites of MABISZ and
the FGA.


ASTRA ASIGURARI: Liquidator Seeks to Sell Biz in its Entirety
-------------------------------------------------------------
Romania Insider reports that KPMG Restructuring, the provisional
liquidator of the Romanian bankrupt insurer Astra Asigurari,
considers transferring the business as a whole.

According to the report, this includes about one million insurance
policies that are still valid together with the employees, the
company's headquarters, and internal procedures.

Any potential sale needs the creditors' approval and an okay from
the Financial Supervisory Authority (ASF), the report adds.

In August last year, Astra Asigurari lost its license and went
bankrupt, following a decision of the financial market regulator
ASF, Romania Insider relates. The financial regulator's decision
came after Astra couldn't finalize a capital increase that would
have saved it. The special administrator and Astra's mains
shareholder, local businessman Dan Adamescu, blamed each other for
the situation, according to the report.

ASF has selected KPMG and Dascal Insolvency to liquidate Astra
Asigurari, Romania Insider relays.


COMPLEXUL ENERGETIC: Foreign Investor Mulls Buying Shares
---------------------------------------------------------
Romania Insider reports that a foreign investor may be interested
to buy shares in the Complexul Energetic Hunedoara that entered
insolvency earlier this month.

The investor is willing to bring at least EUR200 million to the
company's capital, according to sources close to the company,
cited by local Profit.ro., Romania relays.

One year ago, the American company Quintana Minerals Corporation
showed interest in CE Hunedoara, but in the end nothing happened,
Romania Insider recalls.

According to Romania Insider, the sources said representatives of
the investor will visit the energy producer in a few days to
discuss more details. The investor's representatives and Romanian
state officials will then go to Brussels to negotiate a state aid
for the company based on a restructuring plan, Evertiq relates.

On December 28, power producer's administration board agreed that
CE Hunedoara needed to enter insolvency and restructure to avoid
bankruptcy, Romania Insider notes. The energy producer's total
debts amount to EUR267 million.

The tribunal has appointed the local firm GMC SPRL Craiova as the
energy producer's temporary judicial administrator, Romania
Insider reports citing Hotnews.ro.

Complexul Energetic Hunedoara is a Romanian state-owned power
producer.  It is the largest company in Jiului Valley and
Hunedoara, and the only company that supplies heat to Deva and
the Jiului Valley cities.  The company has some 6,300 employees.



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


RVK-FINANCE: Fitch Assigns 'BB-' Rating to RUB3BB 2020 Bonds
------------------------------------------------------------
Fitch Ratings has assigned RVK-Finance LLC's RUB3 billion bonds
due in November 2020 a final local currency senior unsecured
rating of 'BB-' and a final National senior unsecured rating of
'A+(rus)'.

The bonds were issued by RVK-Finance LLC, a wholly owned indirect
subsidiary of Ventrelt Holdings Ltd (Ventrelt or the group, BB-
/Stable). The bonds benefit from sureties provided on a several
basis by certain group subsidiaries. The senior unsecured rating
is assigned at the same level as Ventrelt's Long-term local
currency Issuer Default rating.

Ventrelt is a leading private water and waste water operator in
Russia. Its ratings reflect the company's long-term leasing and
concession agreements with municipalities to provide essential
infrastructure services, forecast leverage increase over 2015-
2018, refinancing needs and a complex existing funding structure.

The ratings are constrained by Ventrelt's limited size and
diversification relative to larger peers and 'BB'-rated Russian
companies, as well as an evolving regulatory framework for
concession agreements and tariff-setting. In addition, its capex
relative to cash flow is sizeable and results in negative free
cash flow (FCF).

KEY RATING DRIVERS

Senior Unsecured Equal to IDR

The bonds benefit from sureties totalling RUB3 billion provided on
a several basis by RVK-Invest LLC, Krasnodar Vodokanal LLC, Tyumen
Vodokanal LLC, Barnaul Vodokanal LLC and Voronezh Vodokanal LLC,
which are all wholly-owned indirect subsidiaries of the group.


The senior unsecured rating is equal to Ventrelt's Long-term local
currency IDR, reflecting that the level of prior-ranking debt
being below Fitch's threshold of 2x-2.5x EBITDA. In addition, the
combined EBITDA of subsidiaries providing sureties for the bonds
comprised 66% of the group's 2014 EBITDA.

Ventrelt will use the proceeds of the bond issue to refinance its
existing debt obligations and finance investment programme for
2016.

Weaker Credit Metrics Expected

Fitch expects Ventrelt's financial profile to deteriorate over the
medium term but to remain comparable with that of similarly rated
regulated utilities. This is due to high capex resulting in
negative FCF throughout the forecast period of 2016-2019 and our
assumptions of tariff growth being largely below regulator-
approved levels and high interest rates for new debt.

"We expect net debt/connection fee-adjusted EBITDA to increase to
slightly below 4x by 2018, approaching Fitch's negative rating
guideline of 4.0x. Funds from operations interest coverage
adjusted for connection fees was 3.3x at end-2014 and Fitch
expects that interest cover will remain in the low single-digit
territory. "

Long-term Tariffs Approved

The regulators have approved long-term tariffs for all Ventrelt's
water channels for 2015-2019. The indexation is based on inflation
and also takes into account volume reductions in each of the water
channels. There were some changes in the legislation regarding
tariff policy in the water channels in July 2014. The regulator is
currently expected to include a minimum 5% operating margin into
the tariff, which the company can keep. Coupled with the long-term
tariff approval, this allows Ventrelt to generate profit in each
of the water channels as well as improve the predictability of
earnings and cash flows.

"We conservatively forecast that long-term tariffs may be revised
downwards and therefore subtract 2% from approved annual tariff
growth for both water supply and water drainage for each of the
water channels."

Limited Impact from Tough Economy

The slowdown in Russia's economy has so far had limited impact on
the company's performance and tariff-setting. Ventrelt provides
services mainly to households, which are heavily affected by the
downturn. However, the company's cash collection rates remain at
historical levels of 98% and do not materially impact working
capital.

Expansion Strategy

Ventrelt remains Russia's leading private water and wastewater
operator operating under the name of Rosvodokanal, serving about 6
million customers in Russia, operating about 23,000km of water and
sewerage pipelines and supplying over 450 million cubic metres of
water annually. In 2014, Ventrelt reported revenues of RUB15
billion, a 1.2% increase YoY.

Its strategy envisages further expansion into Russian cities with
at least 350,000 residents. It plans to participate in most of the
available tender for concession agreements, although the company
plans to remain focused on profitability, according to management.
We view this as an aggressive target given potential investment
needs and considering that most Russian water utilities continue
to be owned by municipalities.

KEY ASSUMPTIONS

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

-- Domestic GDP decline of 4% and inflation of 15.5% in 2015
-- Tariffs to increase 2% below approved annual tariff growth
-- Capital expenditure in line with management's forecasts
-- Absence of dividend payments over 2015-2019

RATING SENSITIVITIES

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

-- Increased revenue and earnings visibility following the
    implementation of long-term tariffs;

-- Sustained positive FCF generation.

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

-- An increase in leverage above 4x net debt/connection-fee
    adjusted EBITDA to fund additional capital expenditure or
    acquisitions;

-- A sustained reduction in cash generation through a worsening
    operating performance or deteriorating cash collection.

DEBT AND LIQUIDITY STRUCTURE

At October 31, 2015, Ventrelt had short-term debt of RUB3.8
billion against cash and cash equivalents of RUB2.2 billion. A
major part of outstanding debt was represented by RUB3 billion
9.6% bonds that matured at 9 November 2015. Ventrelt has procured
bridge credit facilities for RUB3 billion due in November 2016
from multiple banks, which were subsequently refinanced with
issued bonds. At October 31, 2015, all outstanding loans were
denominated in Russian rouble.


VNESHECONOMBANK: Russia to Help Lender to Pay Creditors, FM Says
----------------------------------------------------------------
Russian lender Vnesheconombank will get all the funding it needs
to meet its obligations, Finance Minister Anton Siluanov told
Bloomberg TV in an interview.

As related in the Jan. 7, 2016 edition of the The Troubled Company
Reporter-Europe, Bloomberg News related that Vnesheconombank or
VEB needed a rescue and the cost of its bailout could reach RUR1.3
trillion (US$18 billion), according to some government officials.
The report noted that VEB was used by Vladimir Putin for years to
pay for "special projects", from the Sochi Olympics to covert
acquisitions in Ukraine to oligarch bailouts.



===========
T U R K E Y
===========


ARAP TURK: Fitch Affirms 'BB-' Issuer Default Ratings
-----------------------------------------------------
Fitch Ratings has affirmed Arap Turk Bankasi A.S.'s (A&T Bank)
Long-term local and foreign currency Issuer Default Ratings (IDRs)
at 'BB-' with a Stable Outlook.

KEY RATING DRIVERS - IDRS, VR, and NATIONAL RATING

The IDRs and National Rating are driven by A&T Bank's standalone
strength, as measured by the 'bb-' Viability Rating (VR). The VR
is constrained by the dependence of A&T Bank's business model on
deposit funding from its majority shareholder, Libyan Foreign Bank
(LFB), and on trade flows between Libya and Turkey. The ratings
are also held down by the limited franchise of the bank within the
Turkish banking sector, its specialist focus on the volatile MENA
region and high concentrations on- and off-balance sheet. The VR
benefits from A&T bank's track record of consistently reasonable
financial performance.

A&T Bank has developed significant expertise in cross-border trade
financing and is the primary Turkish bank conducting business
between Turkey and MENA countries, in particular Libya. A&T Bank
has also grown its domestic lending portfolio, mainly towards
large well-known Turkish corporates. Loan concentration is high,
reflecting A&T bank's small size and customer base, but the bank
has a long track record of low impaired loans (around 1% of gross
loans) which compares well among international trade finance
peers.

LFB funding, which is extended at favourable rates, has
represented around 40%-50% of total funding since 2011, presenting
significant funding concentration. However, this has been fairly
stable over the years and has supported A&T bank's operations
within the region. Other sources of funding consist of bank
borrowings, of which a high proportion is from related LFB
affiliates, and repos. Loans are typically short-term, working
capital loans, which support A&T Bank's liquidity.

Fitch considers the capital adequacy ratios of A&T Bank as
adequate (Fitch Core Capital/risk weighted assets 14.8% at end-
9M15) given its risk profile, but the small size of capital and
high loan concentrations make it vulnerable to one-off risks.
Capitalisation is supported by A&T Bank's reasonable earnings
performance, reduced foreign-currency lending and generally high
reserve coverage.

KEY RATING DRIVERS - SUPPORT RATING

The bank's '5' Support Rating and 'No Floor' Support Rating Floor
reflect Fitch's view that support cannot be relied upon either
from the Turkish authorities or from the shareholders. Fitch
believes that support cannot be relied upon from the Turkish
authorities, given A&T bank's limited systemic importance.

Given the uncertain economic and political environment in Libya,
LFB's ability to provide support cannot be relied upon despite a
track record of past support for the Turkish bank's operations.
LFB has over time shown a high propensity to support A&T Bank,
underlining the importance of the bank to the former's
international strategy. As well as providing funding to A&T Bank
at favourable prices, LFB appoints key senior management and plays
a vital role in introducing business to its Turkish subsidiary.

RATING SENSITIVITIES- IDRS, VR and NATIONAL RATING

The bank's IDRs and National Rating are sensitive to a change in
the VR. The bank's VR could be downgraded if A&T Bank's strategic
importance to LFB is reduced, through a substantial loss or
withdrawal of funding or business, which could happen, for
example, as a result of a change in the regime in Libya. An
increase in funding or lending concentrations could also result in
a downgrade of ratings. However, these scenarios do not represent
Fitch's base case.

Upside potential for the ratings is limited given the bank's niche
franchise, high reliance on parent funding and exposure to the
Libyan market. However, diversification of A&T Bank's funding
profile and business model and significant improvements in Libya's
operating environment could bring upside rating potential.

RATING SENSITIVITIES - SUPPORT RATING

The Support Rating could be upgraded if Fitch considers LFB is
able to provide extraordinary support to A&T Bank in case of need.
This would be contingent on a more stable regime in Libya while
maintaining the importance of A&T Bank to LFB.

The rating actions are as follows:

Long-term FC and LC IDR affirmed at 'BB-'; Stable Outlook

Short-term FC and LC IDR affirmed at 'B'

Viability Rating affirmed at 'bb-'

Support Rating affirmed at '5'

Support Rating Floor affirmed at 'No Floor'

National Long-term Rating affirmed at 'A+(tur)'; Stable Outlook



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


METINVEST BV: Debt Moratorium Request Opposed by Bondholders
------------------------------------------------------------
Bloomberg News' Luca Casiraghi reports that a group of Metinvest
BV bonholders is trying to derail the steelmaker's efforts to
partially halt payments on its $1.1 billion of notes, according to
two people familiar with the matter.

The report relates that the investors, which include Pioneer
Investment Management Ltd., have less than the 25 percent
threshold of bondholdings required to block the standstill in U.K.
courts and are seeking more backers. A separate group, the report
adds, advised by PJT Partners Inc., which holds more than half of
Metinvest's notes, has approved the proposal in principle,
according to the people, who asked not to be named because the
matter is private.

Metinvest has asked to suspend some of the payments, including $85
million notes due on Jan. 31, as it works with Rothschild on plans
to restructure its $3 billion of bonds and loans, Bloomberg
discloses.

Party representatives of the sectors involved in the matter have
declined to comment, Bloomberg cites.

Metinvest BV is Ukraine's largest steelmaker.



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


ANGLO AMERICAN: Plans to Sell Brazilian Mine for $1 Billion
------------------------------------------------------------
Zeeshan Athar at Business Finance News reports that Anglo American
plc has announced plans to sell high-quality Brazil-based niobium
and phosphate mine for $1 billion. The company is taking steps to
reorganize its portfolio before year-end financial results
announcement, the report says.

Business Finance News, citing The Sunday Times, relates that the
company intended to sell its operations in the current week. This
step will be a part of its restructuring program through, which
the company has opted to repair its balance sheet and reduce the
debt, the report says.

During 2015, Anglo American faced severe crisis, mainly due to
China's economic disturbance, Business Finance News says. The
economic disturbance brought disequilibrium in demand and supply.
As a result, supply glut situation incurred amid constant ore
production by the miners to complete their year-end targets.

In November, company CEO Mark Cutifani disclosed his strategy to
sell over 60% of Anglo's mining stakes, as well as 85,000 job
cuts, Business Finance News recalls. He mentioned that severe
commodity prices decline required bolder action. He further
pointed out that the company's future guidance will be disclosed
in February 2016, according to Business Finance News.

Business Finance News relates that as a part of the restructuring
plan, the miner had already entered into sale and purchase
contract with Australian Pacific Coal Limited in December.
According to the report, the firm agreed to sell 83.33% of its
Dartbrook coal mine stake to the acquirer. It is pertinent to note
that Dartbrook mine's high-production cost led it to closure from
2006.

This deal is positive for Anglo American in a manner that
Australian Pacific will not only compensate $36 million for the
mine, but also pay $2.16 per ton royalty for future coal
production, Business Finance News notes. This royalty payment will
be linked with Brisbane All Groups Consumer Price Index and could
appreciate up to $18 million.

The other part of the deal comprised $0.18 per ton payment, in
case if Australian Pacific uses the company's processing
infrastructure for coal obtained from the sites other than
Dartbrook, according to Business Finance News.

Business Finance News says Anglo American Platinum had also
announced its intention to sell its Union mine and was in talks to
exit joint ventures that operate Pandora and Bokoni mines.

While the sale's decisions are in progress, the announcement of
85,000 job cuts created concerns in South Africa, says Business
Finance News.  As per 2015 statistics, 72,000 employees were
recruited. This comprises 48% of Anglo's global workforce, notes
Business Finance News.

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.


ANGLO AMERICAN: Completes Exit From Middle East Operations
----------------------------------------------------------
Cecilla Jamasmie of Mining.com reports that Anglo American
announced Tuesday, January 12, that it has finally completed its
exit from the Middle East by selling its Tarmac business to Colas
Moyen Orient, a subsidiary of French construction company Bouygues
Group.

The full sale follows a deal last year that saw Anglo unloading
50% of the UK building materials group to LafargeHolcim, the
report cites.

Mining.com relates that the world's number five diversified miner
has been selling assets to reduce debt and said last month it
would only focus on diamonds, industrial materials including
platinum, and bulk commodities such as iron ore and coal.  At the
end of last year, Anglo had only 55 mines left, but the goal is
reduce them to the "low 20s", the report says.

As part of Anglo American's drastic response to the relentless
plunge in commodities, the company is seeking to consolidate its
business into three units from six, Mining.com points out, as a
drastic response to the relentless lunge in commodities. It has
also increased its target for selling assets to $4 billion from
its previous minimum of $3 billion, including the sale of its
phosphates and niobium businesses, the report adds.

Investors have reacted positively to the news of paring down the
company, according to Mining.com.  The stock was up 2.4% to about
$236p mid-afternoon Jan. 12 in London.  However, the company has
lost 21% of its value in 2016's first week of trading alone, the
report cites.


DORKING FOOTBALL: Set to Launch Campaign to Avoid Insolvency
------------------------------------------------------------
Dorking Advertiser reports that Dorking Football Club's proud 136-
year heritage is in danger of being consigned to history for good.

According to the report, Surrey's oldest senior club is facing
insolvency with the news that the GBP4 million redevelopment of
Meadowbank will not be ready until the 2017-18 season.

Dorking Advertiser relates that the project has been delayed due
to an extension of the design and contracting process, with Mole
Valley District Council striving to get best value for money.

As such, Dorking, who have been ground-sharing with Horley Town at
the New Defence for the past two seasons, have been left in limbo
for another season, the report says.

And with no means of generating the significant revenue required
for a third season of ground-sharing, the club is set to launch a
fundraising campaign to meet the GBP30,000 costs of another year
away from Meadowbank, with club director Roger Mahony calling on
the local community to help secure the club's future, according to
Dorking Advertiser.

"We managed to stretch the budget for two seasons of ground-
sharing, but there is no money in the pot for season three,"
Dorking Advertiser quotes Mr. Mahony as saying. "We need GBP30,000
to see us through next season, maintaining community football for
ladies and our U18s.

"We are hoping the community will help see the club through the
extra year as there will be a fantastic facility in the end and we
don't want to see 136 years of football heritage and history in
the town go down the tube."


FALCON GROUP: Fitch Ups Long-term Issuer Default Rating to 'BB-'
-----------------------------------------------------------------
Fitch Ratings has upgraded Falcon Group Holdings (Cayman)
Limited's Long-term Issuer Default Rating (IDR) to 'BB-' from
'B+'. The Outlook is Stable. The Short-term IDR has been affirmed
at 'B'.

The upgrade reflects continued improvements in Falcon's management
quality and corporate culture as well as the introduction of more
effective corporate governance standards. It also considers
Falcon's cohesive strategy and its track record of delivering on
business and financial goals.

KEY RATING DRIVERS

Falcon's IDRs are constrained by its small, niche franchise and
undiversified business model as a specialised financer. Falcon's
business continued to grow by product offering and geography
during 2015, translating into on-going improvement in financial
performance.

Falcon's corporate governance is a key rating driver, given that
it is a privately owned, unregulated, non-bank financial
institution. Nevertheless, Falcon has made good progress
strengthening corporate governance, including the appointment of
an additional two independent directors to its board (now four out
of seven directors are independent) and the introduction of
various policies and procedures. The founder, chairman and sole
shareholder, Mr. Kamel Alzarka, remains closely involved in the
business, but his day-to-day influence is reducing as senior
management take on more responsibilities. We still view Mr Alzarka
as a key man risk to the business, given his historical influence,
full ownership and importance to business relationships and
franchise.

Fitch considers the improved risk framework as credit positive,
following the appointment of a new chief risk officer in 2014 who
has developed a formalised risk analysis and monitoring process.
While Falcon remains focused on expansion and diversification,
Fitch believes growth is likely to be manageable from a risk
perspective, given Falcon's investment in risk management.

The IDRs also consider Falcon's adequate financial profile; in
particular asset quality and leverage. Earnings are improving, but
remain concentrated on a fairly small number of customers. Funding
sources remain reliant on short-term wholesale funding, but
transactions are very short-term and self-liquidating. Falcon has
committed to capitalising a minimum level of retained earnings,
but the volume of capital is small (end-1H15 tangible common
equity of USD134m), leaving Falcon more exposed to any unforeseen
financial shocks than institutions with larger buffers to absorb
these.

RATING SENSITIVITIES

A significant expansion of Falcon's franchise and diversification
of its business model would be required for a further upgrade of
its IDRs, which Fitch views as unlikely in the short term.
Falcon's IDRs would be sensitive to a change in Fitch's view of
its company profile, which could arise from a change in its
strategy and a shift in business direction, specifically into non-
core or unrelated activities. They are also sensitive to any sharp
deterioration in earnings or capital depletion from any weakening
of its franchise, unforeseen events or any deviation from its
stated dividend policy.


HARBOURMASTER CLO 4: Reduced Liquidity No Effect on Fitch Ratings
-----------------------------------------------------------------
Fitch Ratings confirms that Harbourmaster CLO 4 will not be
impacted by the reduction of its liquidity facility.

Harbourmaster CLO 4 B.V's commitment amount was reduced to
EUR250,000 from EUR10 million. The current capital structure is as
follows:

Class B1 (ISIN XS0203061907): 'CCCsf'; Recovery Estimate (RE) 95%
Class B2E (ISIN XS0203062467): 'Csf'; RE 0%
Class B2F (ISIN XS0203063945): 'Csf'; RE 0%
Class S2 (ISIN XS0203066534): 'CCCsf'; RE 95%

Harbourmaster CLO 4 has been deleveraging since April 2010 with an
outstanding rated note balance of EUR11.8m compared with EUR474m
at origination in 2004. The liquidity facility addresses basis
risk between the assets and liabilities. Basis risk may arise if
assets switch to, for example, semi-annual payment frequencies,
potentially leaving the issuer short of funds for one quarterly
payment. In Fitch's view, the reduced notional amount of the
liquidity facility is sufficient to cover one quarterly interest
payment.


HARVEST CLO V: Fitch Affirms 'BB-sf' Rating on Class Q Debt
-----------------------------------------------------------
Fitch Ratings has upgraded Harvest CLO V plc's classes A-2 and B
notes as follows:

Class A-R (No ISIN): affirmed at 'AAAsf'; Outlook Stable

Class A-D (ISIN XS0293379342): affirmed at 'AAAsf'; Outlook
Stable

Class A-2 (ISIN XS0293379771): upgraded to 'AA+sf' from 'AAsf';
Outlook Stable

Class B (ISIN XS0293380191): upgraded to 'A+sf' from 'Asf';
Outlook Stable

Class C-1 (ISIN XS0293380274): affirmed at 'BBBsf'; Outlook
Stable

Class C-2 (ISIN XS0293951280): affirmed at 'BBBsf'; Outlook
Stable

Class D (ISIN XS0293380431): affirmed at 'BBsf'; Outlook Stable

Class E-1 (ISIN XS0293380514): affirmed at 'Bsf'; Outlook Stable

Class E-2 (ISIN XS0293952684): affirmed at 'Bsf'; Outlook Stable

Class Q (ISIN XS0293380944): affirmed at 'BB-sf'; Outlook Stable

Harvest CLO V is a securitisation of mainly senior secured, senior
unsecured, second-lien and mezzanine loans (including revolvers).
At closing a total note issuance of EUR650m was used to invest in
a target portfolio of EUR632m. The portfolio is actively managed
by 3i Debt Management Investments Limited.

KEY RATING DRIVERS

The upgrade of the class A-2 and B notes reflects the substantial
increase in credit enhancement over the past 12 months due to the
deleveraging of the portfolio. Despite the portfolio amortisation,
it remains well diversified, with 130 assets from 98 obligors as
of November 2015.

The credit quality of performing assets has improved since
November 2014. The reported weighted average rating factor has
decreased to 27.4 currently from 27.8 in November 2013, indicating
an improvement in the credit quality of performing assets in the
portfolio, with only one asset rated 'CCC' or below as of November
2015. One obligor defaulted in the last 12 months.

Following the end of the reinvestment period in May 2014, the
manager is allowed reinvest unscheduled principal proceeds and
proceeds from the sale of credit-improved and credit- impaired
assets, subject to certain conditions. The manager is currently
unable to reinvest any principal proceeds because of a breach of
some of the portfolio profile tests and the class E over-
collateralisation (OC) test level being below 108%.

The transaction is currently passing all OC tests. The OC test
values have improved since November 2014, particularly at the
senior level, due to the deleveraging of the transaction, which
offsets the impact the additional default registered over the past
year. All interest coverage tests are passing with significant
buffers.

The transaction uses the multi-currency class A-R variable funding
notes to hedge GBP and USD exposure. The main hedging strategy
following the end of the reinvestment period involves matching
senior note redemptions by currency so that GBP and USD principal
proceeds are used to redeem GBP and USD-denominated class A-R
drawings while euro principal proceeds are used to redeem euro-
denominated senior liabilities, thus keeping the balance of GBP
and USD-denominated assets and liabilities aligned. However, a
skew of defaults or prepayment activity to assets denominated in a
single currency can create a currency mismatch, introducing
additional performance volatility for the transaction. Fitch
considered the impact of a currency mismatch in its analysis.

RATING SENSITIVITIES

A 25% increase in the obligor default probability would lead to a
downgrade of up to one notch for the rated notes.

A 25% reduction in expected recovery rates would lead to a
downgrade of one notch for the rated notes.

DATA ADEQUACY

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

The majority of the underlying assets have ratings or credit
opinions from Fitch and/or other Nationally Recognised Statistical
Rating Organisations and/or European Securities and Markets
Authority registered rating agencies. Fitch has relied on the
practices of the relevant Fitch groups and/or other rating
agencies to assess the asset portfolio information.

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


HELLERMANNTYTON GRP: S&P Ups CCR to BB Then Withdraws Rating
------------------------------------------------------------
Standard & Poor's Ratings Services raised its 'BB' long-term
corporate credit rating on U.K.-based cable management solutions
provider HellermannTyton Group PLC to 'BBB' (to be equal with
Delphi Automotive PLC), and removed it from CreditWatch, where S&P
placed it on Aug. 4, 2015.  This action follows the close of
Delphi's (BBB/Stable/--) acquisition of HellermannTyton on
Dec. 18, 2015.

At the same time, S&P withdrew the ratings on HellermannTyton
because, following the acquisition close, HellermannTyton is now
fully owned by Delphi.  All previously rated liabilities of
HellermannTyton were repaid and cancelled.


* UK: 100,000 Firms Owed Money by Insolvent Cos., Individuals
-------------------------------------------------------------
Over 100,000 UK businesses were owed money by suppliers or
customers entering an insolvency procedure during the last year,
according to research by insolvency trade body R3.

In total, 113,000 businesses, about 6% of all UK businesses, were
creditors in an insolvency procedure in 2015.

Medium-sized businesses -- those employing 51-250 people -- were
most likely to have been exposed to another firm or individual's
insolvency, with one-in-seven (14%) of these businesses owed money
by an insolvent individual or company.

Phillip Sykes, R3 president says: "Growing businesses encounter
two classic problems: going for growth by taking on new customers
without properly checking their creditworthiness; and a lack of
controls to monitor their exposure.

"This leaves growing businesses, particularly medium-sized ones,
as the most at risk of being exposed to others' insolvencies.

"Although the UK insolvency regime is ranked as one of the best in
the world, it is often the case that those owed money in
insolvencies won't see all of their money back. This can have a
serious impact on their own finances.

"Businesses need to take preventative measures and properly asses
risks before trading with individuals or other firms.  Doing so
will minimise the chance of being exposed to others' insolvencies
in the first place."

The research, from R3's Business Distress Index, a long-running
survey of the financial health of 500 UK businesses, also found
that only 4% of large businesses (250+ employees) have been a
creditor in the last year.

By comparison, between 5-7% of businesses employing between 1 and
50 people were a creditor in an insolvency process last year.

The research also showed that 4% of businesses employing between 2
and 5 people were a creditor in over five insolvencies last year
(23,000 businesses) -- the highest proportion of any business size
in this situation. On average, all businesses should be a creditor
in one insolvency procedure every five years.

Phillip Sykes says: "Credit control can be a real problem for
smaller businesses. They might be selling goods or services, but
it can be difficult for a small or growing business to make sure
it actually collects what it is owed.

"When you have a small company exposed to more than five different
insolvencies, there is a cause for concern. There could be real
cash flow issues there.

"Businesses need to be savvy about who they trade with. If a
business isn't paid up-front or on delivery, or pays in advance
for its own supplies, it is essentially lending money to those
with whom it is trading. This sort of 'lending' doesn't have the
same protection in insolvency situations that secured lending,
like a mortgage, enjoys."

Debts are repaid in insolvencies according to a strict hierarchy
set out by the government. Secured loans are at the top of the
hierarchy, while those with unsecured loans, like trade creditors,
are towards the bottom.

Phillip Sykes adds: "Creditors in an insolvency process need to
engage with the insolvency practitioner or Official Receiver
involved as soon as possible once the insolvency begins. Those in
this position are accountable to creditors and will represent
their interests. The more communication there is, the higher the
chance of a better return."


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


* EU to Consider China's Eligibility for Lower Import Tariffs
-------------------------------------------------------------
Bloomberg News' Jonathan Stearns reports that the European Union
policy makers is set to start deliberations to determine whether
EU industries ranging from steel to solar can keep relying on
import tariff to fend of aggressive Chinese competitors.

The European Commission, the EU's executive arm, Bloomberg
relates, was set to hold an initial debate on Jan. 13 on whether
the bloc should recognize China as a market economy starting in
December.  This would essentially mean Beijing's free-market
credentials will face a year of scrutiny, the report cites.

According to Bloomberg News, market-economy status for China would
signal more European trust in Beijing by ensuring the EU uses
Chinese data for trade investigations affecting the country. The
bloc currently uses other nations' figures to calculate anti-
dumping levies against China on the grounds that Chinese state
intervention artificially lowers domestic prices and makes them an
unreliable indicator of a good's "normal value." This practice
results in higher EU duty rates against Chinese exporters and --
by extension -- more protection for European manufacturers, notes
the report

The matter combines top-level political calculations with tricky
economic and legal considerations, according to the report.

European producers however fear market-economy status for China,
relates the report.  In fact, an alliance of 25+ European industry
associations hailed a study by U.S. Based Economic Policy
Institute alleging that unilateral recognition of China as a
market economy by the EU would put as many as 3.5 million jobs in
Europe at risk, Bloomberg says.



                            *********

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 Ann 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 * * *