TCREUR_Public/160128.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Thursday, January 28, 2016, Vol. 17, No. 019



PROCREDIT BANK: Fitch Affirms 'B' LT Issuer Default Rating


BANCA PRIVADA: Lead Shareholders Can't Sue in U.S. Courts


MINSK TRANSIT: Moody's Withdraws Caa1 Currency Deposit Rating


BANK OF CYPRUS: Loan Quality to Remain Weak in 2016, Moody's Says


BANQUE PSA: S&P Affirms 'BB+/B' Counterparty Credit Ratings
FINANCIERE QUICK: Moody's Affirms B3 CFR, Outlook Stable


ITALY: Reaches "Bad Bank" Deal with European Union


AURIS LUXEMBOURG II: Moody's Affirms B2 CFR, Outlook Positive
AURIS LUXEMBOURG II: S&P Affirms 'B+' CCR, Outlook Stable


GREENKO DUTCH: S&P Raises Senior Secured Notes Rating to 'B+'
HARBOURMASTER CLO 9: Fitch Affirms 'B-sf' Rating on Cl. E Debt
LA PLACE: Jumbo to Take Over Business, 5-10 Outlets to Close
NORTH WESTERLY CLO III: S&P Raises Rating on Cl. E Notes to CCC+
WINDERMERE X: Moody's Lowers Rating on Cl. X Notes to Caa3


JSW: Poland Seeks to Reach Compromise with Bondholders
PFLEIDERER GRAJEWO: Moody's Assigns B1 CFR, Outlook Positive


KAZANORGSINTEZ PJSC: Fitch Hikes Issuer Default Rating to 'B'


PEKO: Dozens Handed Discharge Notices as Firm Folds


BBVA RMBS 2: S&P Affirms B-(sf) Rating on Class C Notes


ROSINKA: Court Recognizes Two Claims Under Bankruptcy Proceedings

U N I T E D   K I N G D O M

FAIRLINE BOATS: Saved in Sell Off by Administrators
HOKKEI: In Administration, Feb. 1 Creditors' Meeting Set



PROCREDIT BANK: Fitch Affirms 'B' LT Issuer Default Rating
Fitch Ratings has affirmed ProCredit Bank (Albania)'s (PCBA) Long-
term Issuer Default Ratings (IDRs) at 'B' with a Stable Outlook
and Viability Rating (VR) at 'b'.



PCBA's IDRs and Support Ratings reflect the likelihood of support
from its parent, ProCredit Holding AG & Co. KGaA (PCH,
BBB/Stable). However, the extent to which such support can be
factored into the ratings is constrained by Fitch's assessment of
country risks in Albania.

Fitch's view of support is based on 100% ownership by the parent,
the strategic importance of south-eastern Europe to PCH, strong
integration within the parent group and a track record of capital
and liquidity support. Absent of country risk constraints, these
considerations would typically be reflected in a one-notch
differential between the rating of the parent, PCH, and that of

The one-notch uplift of PCBA's local currency IDR above the
foreign currency IDR reflects a lower probability of restrictions
being placed on servicing of local currency obligations in case of
systemic stress.


PCBA's VR reflects a challenging operating environment, which
makes the bank's performance more vulnerable to potential domestic
market shocks. It also reflects asset quality and financial
performance that have been weaker than regional peers in the PCH
Group. The bank's Fitch Core Capital (FCC) ratio of 15.5% at end-
3Q15 is only moderate, given the operating environment, the bank's
asset quality and its exposure to the Albanian sovereign, which
accounted for 108% of the bank's Fitch Core Capital.

However, Fitch's view is mitigated by sound reserve coverage of
impaired loans (63% of impaired loans were covered by IFRS
reserves at end-3Q15), and ordinary capital support from PCH.
Although internal capital generation remains constrained by the
bank's small size, financial performance has improved since its
credit-risk driven losses in 2013. The bank benefits from a strong
funding profile, and is nearly fully funded by local customer
deposits, despite operating with a limited franchise of 2.7% of
total banking sector assets at end-1H15. PCBA's risk management
and corporate governance benefit from its participation in the PCH

The bank reported an IFRS impaired loans ratio of 11.2% at end-
3Q15, albeit based on a conservative approach to impairment, with
a key trigger being loans past due 30 days. This ratio has
improved from a high 13.8% at end-2013, as the bank has progressed
in resolving weaknesses in its medium loan portfolio dating from
2013. At end-3Q15, the bank reported loans past due 30 days of
10.7%, compared with PCH Group's 4.6%. Coverage of these IFRS
impaired loans with total IFRS reserves remains adequate at 64% at
end-3Q15, and loans past due 90 days were more than fully covered
at end-2015.

The bank's asset quality remains sensitive to the performance of a
still high level of restructured loans (restructured but not
impaired loans of 8% at end-3Q15) and to the performance of some
of its larger SME exposures, given the bank's small overall size.
PCBA is also open to indirect foreign currency risk in the event
of a local currency devaluation against the euro in particular, as
euro loans accounted for 38% of gross loans.



Changes in Fitch's view of country risks in Albania in either
direction could affect PCBA's IDRs and Support Ratings. A
downgrade could also result from evidence of reduced commitment
from PCH to the bank, although this is currently not expected.

The bank's VR is sensitive to the operating environment.
Deterioration in asset quality or a sovereign debt crisis that
puts pressure on the bank's capitalization could also be negative
for the VR. Positive pressure on the VR would depend on the bank
making further progress in improving asset quality and in building
a track record of stronger operating revenues, whilst maintaining
current capital levels.

The rating actions are as follows:

  Long-term foreign currency IDR affirmed at 'B'; Outlook Stable

  Short-term foreign currency IDR affirmed at 'B'

  Long-term local currency IDR affirmed at 'B+'; Outlook Stable

  Short-term local currency IDR affirmed at 'B'

  Viability Rating affirmed at 'b'

  Support Rating affirmed at '4'


BANCA PRIVADA: Lead Shareholders Can't Sue in U.S. Courts
Evan Weinberger at Law360 reports that the U.S. Department of the
Treasury's financial crimes unit on Jan. 25 said that the lead
shareholders in an Andorran bank that was shut down after it was
targeted in a U.S. anti-money laundering action had no basis to
sue in American courts because U.S. authorities did not close the

According to Law360, the Financial Crimes Enforcement Network said
that claims filed by Ramon and Higini Cierco, who combined held a
75% stake in Banca Privada d'Andorra SA prior to its collapse,
should be dismissed.

Banca Privada d'Andorra, SA provides banking services in Andorra,
Luxembourg, and Panama.

                        *       *       *

As reported by the Troubled Company Reporter-Europe on Aug. 28,
2015, Fitch Ratings downgraded Banca Privada d'Andorra's (BPA)
Long-and Short-term Issuer Default Ratings (IDRs) to 'Default' (D)
from 'Restricted Default'.  The rating action follows the approval
of the resolution plan by the Andorran resolution authority (AREB)
and subsequent steps taken to implement the plan, including the
conclusion of the valuation of BPA under resolution and
liquidation scenarios.  According to Fitch's rating definitions,
'D' ratings indicate an issuer has entered into bankruptcy
filings, administration, receivership, liquidation or other formal
winding-up procedure, or which has otherwise ceased business.


MINSK TRANSIT: Moody's Withdraws Caa1 Currency Deposit Rating
Moody's Investors Service has withdrawn the Caa1/Not-Prime local-
currency deposit rating, the Caa2/Not-Prime foreign-currency
deposit rating, its caa1/caa1 baseline credit assessment
(BCA)/Adjusted BCA and the B3(cr)/Not-Prime(cr) Counterparty Risk
Assessments of Minsk Transit Bank, based in Belarus (Caa1
negative).  At the time of the withdrawal, the bank's long-term
deposit ratings carried a negative outlook.


Moody's has withdrawn the rating for its own business reasons.


BANK OF CYPRUS: Loan Quality to Remain Weak in 2016, Moody's Says
While the recovering economy is supporting loan recoveries and
depositor confidence, Bank of Cyprus' (deposits Caa3 stable,
baseline credit assessment caa3) and Hellenic Bank's (Caa2 stable;
caa3) extremely weak loan quality will only gradually improve in
2016, Moody's Investors Service said in a published report.

"The economic recovery and a raft of new legislative measures to
help lenders recover unpaid loans are improving Bank of Cyprus'
and Hellenic Bank's restructuring prospects, funding conditions as
well as their profitability.  However, the large stocks of problem
loans will take several years to work through, with the weak real-
estate market hampering collateral sales," says Melina Skouridou,
Analyst at Moody's and author of the report.

The rating agency's report is an update to the markets and does
not constitute a rating action.

Because of the increased economic activity and strengthening
depositor confidence, customer deposits are starting to rebuild
gradually.  Although steadily declining, Bank of Cyprus remains
dependent on Emergency Liquidity Assistance, while Hellenic Bank
faced fewer outflows during the crisis and maintains a stronger
deposit-based funding profile.

Bank of Cyprus, the dominant bank by market share, is ahead in
terms of restructuring and recovering on problem loans.  As a
result, its profitability, which also benefits from recoveries on
the discounted assets it acquired when it took over Laiki's
domestic business in 2013, is recovering at a faster pace.
However, both banks' profits will remain modest the coming years
as they build up their low levels of provisions.

Accounting for around 41% of problem loans, the banks' loan loss
provisions provide a limited buffer against losses from their high
stock of non-performing loans, which continues to pose risks to
their capital levels.  The ratio of non-performing loans to gross
loans, which stood at 56.9% of total lending for Hellenic Bank and
52.5% for Bank of Cyprus as of September 2015, will remain high
over the foreseeable future.


BANQUE PSA: S&P Affirms 'BB+/B' Counterparty Credit Ratings
Standard & Poor's Ratings Services affirmed its 'BB+/B' long- and
short-term counterparty credit ratings on France-based Banque PSA
Finance (BPF).  S&P subsequently withdrew its ratings on BPF, as
well as the ratings on the debt issued by BPF, including the debt
guaranteed by the French state, at the bank's request.

At the time of the withdrawal, the outlook was stable.

S&P analyzes BPF as a member of a wider group, the BPF group,
which provides car financing for Peugeot S.A (PSA).  This group
includes 50% of the joint ventures established in partnership with
Santander Consumer Finance (SCF), the consumer finance subsidiary
of Spanish bank Banco Santander S.A.

The affirmation reflects S&P's unchanged assessment of BPF's
stand-alone credit profile (SACP) as 'bb+'.  The SACP incorporates
S&P's view of the bank's anchor (S&P's starting point in assigning
an issuer credit rating) as 'bbb+', based on the combined
geographical breakdown of the bank's direct lending activities and
50% of the loan book exposure of the joint-ventures.  The ratings
also reflected S&P's unchanged view of BPF group's weak business
position, adequate capital and earnings, adequate risk position,
average funding, and adequate liquidity, as S&P's criteria define
these terms.

S&P believed BPF is insulated from its 100%-owner PSA.  As a
result, S&P capped the rating on BPF two notches above the rating
on its parent.  The 'BB+' rating on BPF reflected BPF group's
stand-alone creditworthiness.

At the time of withdrawal, the outlook was stable, reflecting
S&P's view that BPF's intrinsic creditworthiness remained
constrained by PSA's weak sales growth momentum, balanced against
our belief that the bank will maintain adequate capitalization by
our measures and low credit risk, and that the joint ventures
established with SCF will continue to receive ongoing funding and
liquidity support from SCF.

Ratings on senior unsecured debts issued by BPF and guaranteed by
the French state were also withdrawn at the issuer's request.

FINANCIERE QUICK: Moody's Affirms B3 CFR, Outlook Stable
Moody's Investors Service has changed the outlook on all the
ratings of Financiere Quick S.A.S. and Quick Restaurants S.A. to
stable from positive.  Concurrently, the group's B3 Corporate
Family Rating, B2-PD Probability of Default Rating (PDR) as well
as the B3 instrument rating on the EUR360 million senior secured
notes and the Caa2 rating on the EUR145 million senior unsecured
notes issued by Financiere Quick S.A.S. have been affirmed.
Additionally, Moody's has affirmed the Ba3 rating on the EUR32
million super senior secured revolving credit facility issued by
Quick Restaurants S.A. (as the lead borrower together with France
Quick S.A.S. and Quick Invest France S.N.C.).


The change in outlook on Quick's ratings reflects (i) weaker than
expected operating performance over the last 12 months, (ii)
Moody's expectation that the rebranding into Burger King is
unlikely to bring significant benefits in 2016 because of its
gradual roll out and (iii) our view that leverage will stay at
around 7.0x pro-forma for the recent partial debt repayment.

Strong competition in France including international chains such
as McDonalds and KFC coupled with a 3% contraction of the Quick
Service Restaurant Market (QSR) in France, resulted in a
significant decrease in like-for-like sales for Quick in the first
three quarters of 2015.  In Q3 2015, like-for-like sales dropped
by 4.3% following a circa 7% drop in the previous two quarters.
Furthermore, Moody's expects that sales in the last quarter of the
year will be negatively affected by last November's terrorist
attacks in Paris.

In December 2015, Burger King France S.A.S. ("BK France"), a
majority owned subsidiary of Groupe Bertrand, completed the
acquisition of Quick and its 509 restaurants from Qualium
Investissement.  Around 340 Quick restaurants in France will be
progressively converted into BK restaurants, while the Quick brand
will be retained in other countries, notably in Belgium and
Luxembourg.  Limited details have been disclosed so far regarding
the financial impact of the stores conversion into BK and we do
not expect it to bring visible results in 2016 because the
conversion process will only start in the second half of the year
and it will be gradual.

On Jan. 19, 2016, Quick repaid EUR80 million and EUR10 million of
the outstanding senior secured and unsecured notes respectively in
accordance with the commitment made by the company to the
noteholders in exchange for waiving the change of control clause.
Moody's views positively this debt reduction (financed by Groupe
Bertrand) because it has reduced Moody's pro forma adjusted
leverage to approximately 7.0x from 7.6x as of September 2015.
However, leverage is unlikely to trend towards 6.5x, which was one
of the conditions for the positive outlook.

The company's liquidity remains adequate and it is supported by a
EUR32 million revolving credit facility with adequate headroom
under the financial covenants that have been recently reset.


The company is weakly positioned in the B3 rating category because
of the downward trend in like-for-like sales and EBITDA.  However,
the stable outlook reflects the reduction in leverage through the
partial repayment of the notes and adequate liquidity.  The stable
outlook also assumes that Quick will maintain a prudent financial
policy under the new ownership and that adjusted Debt/EBITDA will
remain at around 7x.


The ratings could be downgraded (i) if like-for-like sales growth
remain negative over the next few quarters or (ii) if it emerges
that the capex associated with the rebranding leads to a prolonged
period of negative free cash flows.  A weakening of the liquidity
profile, including tight covenant headroom, could also put
negative pressure on the rating.

Although a near-time upgrade is unlikely, an upgrade would require
(i) positive like-for-like sales that could ensue from the
rebranding of its restaurants, and (ii) Moody's adjusted
Debt/EBITDA below 6.5x times.

The principal methodology used in these ratings was Restaurant
Industry published in September 2015.


ITALY: Reaches "Bad Bank" Deal with European Union
James Politi and Martin Arnold at The Financial Times report that
Italy and the European Union have reached a deal allowing Italian
banks to sell their large portfolios of non-performing loans to
private investors with a government guarantee, in an effort to
ease market pressure on the financial sector in the eurozone's
third-largest economy.

The EUR350 billion of non-performing loans on the balance sheets
of Italian banks -- worth about 17% of total loans and the same
share of gross domestic product -- has limited the country's
recovery by stunting new lending and made Italian banks especially
vulnerable in the recent market sell-off that has afflicted global
financial shares, the FT says.  The weakness of Italian banks has
also put increasing pressure on the centre-left government run by
Matteo Renzi, Italy's prime minister, nearly two years into his
tenure, the FT notes.

"[This] will make it easier to manage the remaining element of
weakness in the Italian banking sector -- which is the
concentration of non-performing loans," the FT quotes the Italian
finance ministry said in a note on Jan. 27.

Margrethe Vestager, the EU competition commissioner, said the
scheme would not constitute state aid, since the guarantees would
be priced at market rates, the FT relays.

According to the FT, the Italian finance ministry said the new
scheme -- which falls short of a genuine "bad bank" scheme in
which public funds would have directly bought the bad loans --
would allow a government guarantee to be attached to bundles of
non-performing loans that were being sold by Italian banks.


AURIS LUXEMBOURG II: Moody's Affirms B2 CFR, Outlook Positive
Moody's Investors Service has affirmed the B2 corporate family
rating and the B2-PD probability of default rating (PDR) assigned
at Auris Luxembourg II S.A., the holding company for Sivantos and
its subsidiaries.  Concurrently, Moody's has affirmed the B1
instrument rating of Senior Secured Bank Facilities which are
borrowed at Auris Luxembourg III S.a r.l, and the Caa1 instrument
rating assigned to EUR275 Senior Unsecured Notes issued at Auris
Luxembourg II S.A.  Moody's has also assigned a (P)B1 instrument
rating to the new Term loan B borrowed by Auris Luxembourg III
S.a r.l.  The outlook on all ratings was changed to positive from

The rating action was affirmed with a positive outlook following
significant deleveraging since closing of the original acquisition
of the Company and our expectation of continued strong performance
over the next 12-18 months.  The outlook has been changed despite
the announcement of a refinancing amendment process by the
Company.  Sivantos proposes to raise a new EUR110 million TLB
maturing in 2022, which will rank pari-passu with the existing
Senior Secured Facilities.  The proceeds of the new loan, together
with a new equity contribution and shareholder loan will be
applied to pre-pay preferred equity certificates, including earn-
outs, invested by Siemens AG at the Auris Luxembourg I S.A level.
No further amendments to the current loan documents are proposed
and no dividends will be paid to the shareholders as a result of
the transaction.  Moody's estimates that these actions will result
in adjusted leverage of 5.9x as of Sept. 30, 2015, pro-forma for
transaction, compared to 7.2x at closing.


Sivantos's ratings are supported by its strong market position in
the global hearing aid devices market, which is dominated by six
leading companies and is therefore oligopolistic in character.
The Company retains the leading global position by volume and is
third when measured by sales.  While Sivantos continues to market
a large number of its products under the "Siemens" brand, the
rights to use this name are of a multi-year tenor.  Moody's
believes that this offers the Company strong name recognition and
customer loyalty in a market where demand is largely determined by
need rather than desire.  In addition, Sivantos has reported
recent strong earnings and reported market share gains, especially
in 2015, as it has leveraged off a series of product innovations
(since 2012), the March 2015 acquisition of audibene (a global
online retailer of hearing aids) and the delivery of underlying
cost efficiencies.  In this regard, Moody's expects the Company to
continue to deliver strong operational and financial performance
and achieve significant deleveraging.  Finally, Moody's believes
that the industry is largely non-cyclical, at least in terms of
volumes, and that it will continue to experience strong growth
prospects driven by ageing populations in developed countries and,
potentially, increased penetration in emerging markets.

The primary constraint to the rating is relatively high Moody's
adjusted leverage, which we estimate at 5.9x on a pro-forma basis
for the transaction based on FY2015 earnings (to September).  In
addition, an element of customer concentration exists, with the
top 10 clients accounting for around 25% of revenues, as well as a
high concentration of suppliers for certain key components, albeit
that this latter feature is an industry wide feature.  Although
demand from major clients is expected to remain stable Moody's
believes that price pressures exist, driven by a combination of
consolidation within retail distribution channels and restraints
on public sector heath spending, and that these could be
exacerbated in the event of economic downturn.  However, in
mitigation, we also note that a rapid product development cycle
can offset such pressures.  Finally, the Company's size and,
thereby, its comparatively narrow product range leave it
relatively exposed both to the market perception of its products
and potential technological changes.  While Moody's notes that in
recent years Sivantos's market share has grown as a result of
successful new product launches and that associated R&D remains a
key focus of the management team, more historic market share
losses demonstrate the potential for shifts in customer loyalty.


Moody's expects Sivantos's to retain good liquidity.  The Company
exhibits minimal seasonality in demand and has generated cash
flows well in excess of capital spending, including one -- off
restructuring charges, since its acquisition by EQT.  Pro-forma
for the refinancing amendment transaction the Company is expected
to have cash balances of EUR36 million and undrawn availability of
EUR47 million under the RCF.  The RCF matures in 2021 and contains
one springing financial covenant for net leverage not to exceed
9.10:1.00x, which is tested only if the RCF is more than 30%
drawn.  In Moody's view this is a weak covenant that allows for
significantly higher leverage than current levels.  Given modest
capex requirements, which typically account for 3-4% of sales on
an underlying basis, Sivantos also generates meaningful positive
free cash flows after cash interest charges and some minor debt
amortization, which Moody's expect to continue.  The Company's
near-term debt maturity obligations are minimal, consisting of 1%
per annum debt amortization of the Term Loan, which matures in
2022. The Senior Unsecured Notes mature in 2023.


Pro-forma for the refinancing amendment transaction Sivantos's
capital structure consists of circa EUR938 million in Term Loans
(EUR and USD denominated) and EUR275 million in Senior Unsecured
Notes, as well as a EUR75 million RCF of which EUR28 million was
utilized as of September 2015.  The Senior Unsecured Notes are
issued at Auris Luxembourg II S.A., where the CFR is assigned,
while the bank loans are borrowed at Auris Luxembourg III S.a.r.l.

The guarantor coverage test for the Term Loans requires that the
guarantors represent not less than 80 per cent of consolidated
EBITDA and gross assets of the group.  The Term Loans are secured
on a first ranking basis by a pledge over shares in the borrower
(Auris Luxembourg III S.a.r.l.), and bank accounts and accounts
receivables of the Company, while the Senior Unsecured Notes are
secured by a pledge of the shares in the issuer (Auris Luxembourg
II S.A.), and a second-ranking pledge of the shares of Auris
Luxembourg III S.a r.l., where the Term Loans are borrowed.  Under
the terms of an inter-creditor agreement, the Senior Unsecured
Notes rank behind and are expressly subordinated to all the
existing and future senior indebtedness of the guarantors,
including the obligations under the Senior Facility Agreement.  On
the basis of this subordination, the Term Loans are rated
B1/(P)B1, one notch above the CFR, and the Senior Unsecured Notes
are rated Caa1.


The positive outlook reflects Moody's expectation of continued
growth in earnings and free cash flow generation, driven primarily
by the benefits of recent and ongoing product development,
improved penetration that Moody's believes will be augmented by
the audibene acquisition, and the delivery of further cost
efficiencies, such that the Moody's gross adjusted leverage metric
improves towards our upgrade triggers over the coming 12-18
months.  The outlook also assumes that: (1) the management team
will not embark on any material or transformational debt funded
acquisitions; and (2) no material shareholder distributions will
be made.


Positive rating pressure could be exerted if the leverage metric,
as adjusted by Moody's, were to fall towards 5.5x with free cash
flow/debt (as adjusted by Moody's) improving to around 5%.


Downgrade pressure could develop if the gross adjusted leverage
metric were to increase towards 7.0x on a sustainable basis and/or
if there were to be a stagnation in earnings / deteriorating
margin performance, a more aggressive financial policy, or upon
liquidity deterioration.

The principal methodology used in these ratings was Global Medical
Product and Device Industry published in October 2012.

Headquartered in Singapore, Sivantos is one of the leading
manufacturers of hearing aid devices and related products, with
around 80% of revenues being derived from the sale of devices and
the remainder stemming from the retail sale of accessories,
services and repairs.  In FY2015 (to September), the Company
reported pro-forma revenues and adjusted EBITDA of EUR835 million
and EUR206 million, respectively.

AURIS LUXEMBOURG II: S&P Affirms 'B+' CCR, Outlook Stable
Standard & Poor's Ratings Services affirmed its 'B+' long-term
corporate credit rating on Auris Luxembourg II S.a.r.l (Sivantos),
a Luxembourg-based holding company that owns hearing instruments
manufacturer Sivantos Group.  The outlook is stable.

At the same time, S&P affirmed its 'B+' issue rating on the
EUR75 million revolving credit facility (RCF), and the EUR940
million first-lien term loans (comprising the EUR415 million
tranche, including the EUR110 million add on, and the $600 million
tranche) issued by Auris III Luxembourg.  S&P has affirmed
recovery ratings of '3' on these instruments, in the lower half of
the range, indicating its expectation of meaningful (50%-70%)
recovery prospects in the event of a payment default.

S&P also affirmed its 'B-' issue rating on the EUR275 million
senior unsecured notes issued by Sivantos.  The recovery rating on
the notes is '6', indicating S&P's expectation of negligible (0%-
10%) recovery in the event of a payment default.

The affirmation reflects S&P's view that the transaction will have
a minimal impact on Sivantos' Standard & Poor's-adjusted debt
protection metrics. Sivantos is repaying Siemens' remaining
holding in the group using a mix of equity, debt, and debt-like
instruments to finance the transaction.  Siemens' holding was in a
form of preferred equity, which S&P viewed as a debt-like
obligation; S&P included about EUR200 million in its leverage
calculations.  Furthermore, S&P expects continuing improvement in
operating performance, which should compensate for increases in
debt.  S&P projects revenues of between EUR900 million to EUR1
billion and EBITDA at about EUR200 million-EUR250 million in 2016-

S&P projects that adjusted leverage will remain around 7x-6x over
the next three years on average.  This is an improvement on S&P's
previous estimate of about 8x, driven by a stronger-than-expected
improvement in EBITDA.

S&P's debt calculation includes just over EUR1.2 billion of
financial debt in the form of the term loans and unsecured notes,
EUR90 million of payment-in-kind (PIK) toggle notes held by EQT
and Santo Holding GmbH, and EUR180 million of a preferred equity
instrument held by Santo Holding.  Santo Holding is an investment
vehicle of the StrÃ…ngmann family.  Although S&P views these latter
instruments as debt-like, it recognizes their cash-preserving
function.  Excluding these debt-like instruments, leverage would
be about 6x-5x.

S&P does not deduct cash from its leverage calculation as this has
not been ring-fenced for debt repayments and could be used for
other purposes, such as acquisitions.

S&P currently excludes about EUR670 million of preferred equity
instruments held by EQT from S&P's debt calculation.

S&P views positively group's relatively strong cash flow
protection, as it expects funds from operations (FFO) cash
interest coverage to remain well above 2x (3.5x-4.0x), and
Sivantos' strong free cash flow generation of at least EUR40
million per year.

S&P's base case assumes:

   -- 5%-10% revenue growth in the short term, mainly driven by
      increasing volumes and successful commercialization of new

   -- Continuing improvement in EBITDA margin toward the mid-20s,
      supported by operational efficiencies and an improvement in
      the channel mix;

   -- Capital expenditure (capex) of 3%-4% of revenues per year;

   -- Limited acquisitions in the near term.

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

   -- Adjusted debt to EBITDA of around 7x over the next three
      years on average; and

   -- FFO cash interest coverage averaging about 3.5x-4.0x
      annually over the next three years.

S&P's business risk profile assessment is constrained by Sivantos'
relatively small size and its product concentration.  Although
Sivantos occupies the No. 3 position in the global hearing aids
market, it remains smaller in size relative to larger industry
peers Sonova and William Demant (both not rated).

In 2015, Sivantos had normalized revenues of around EUR835 million
and a market share of about 15%.  In comparison, market leader
Sonova generated revenues of about EUR1.6 billion with about 30%
wholesale market share.  The group's larger competitors benefit
from a greater presence in the key U.S. market, as well as a
higher perception of innovativeness in recent years.  The group
also has significant product and brand concentration; the majority
of group revenues are derived from hearing aids, as well as the
Siemens brand.  S&P understands that Sivantos is permitted to
continue marketing its products through the Siemens brand over the
medium term.

S&P expects the pricing environment to remain challenging over the
near term in Sivantos' main markets in the U.S. and Europe, as
customers continue to seek cost savings amid a tough reimbursement
environment.  This pricing pressure has been exacerbated for
Sivantos due to its historical focus on large key accounts.
Although this provides for higher volume potential, such customers
have greater bargaining power and often drive discounts and
promotions.  However, S&P understands that Sivantos is actively
managing its channel mix with a growing focus on the more
profitable independent sector, as well as adopting a more
selective approach to contract renewals with its large key

These weaknesses are partially offset by the positive
characteristics of the global hearing aids market and the group's
strengthened pipeline of new products.  The EUR5 billion global
hearing aids market (including wholesale and retail) is highly
consolidated around the top six players, which account for over
90% of the market.  The industry is also characterized by high
barriers to entry posed by intellectual property rights,
regulation, and substantial upfront research and development (R&D)
investment.  It also benefits from long-term growth prospects due
to an ageing population and an increasing penetration of hearing
loss, with an expected compound annual growth rate of around 5% in
the near term.  What's more, there is little substitution risk
from alternative technologies such as cochlear implants, which
require surgery and represent a more expensive solution.  Although
Sivantos has historically lagged behind its competitors in terms
of innovation and product launches, this started to change after
the successful launch of its "micon" product range in 2012.  This
is gradually improving the group's proportion of revenues from new
products--those launched within the past two years.  Furthermore,
the group's new platform, "binax," has been received positively
and is helping to close the perceived technology gap between
Sivantos and its competitors.  Sivantos now spends approximately
7% of revenues on R&D, in line with its larger industry peers.

S&P views Sivantos' customer diversity as adequate, with no single
customer accounting for more than 10% of revenues.  S&P' also
views positively the various operational efficiencies that the
group is engaging in, optimizing its manufacturing footprint to
lower-cost countries such as China and Poland, and shifting toward
automated manufacturing processes for new products.

The ratings on Sivantos are constrained by its relatively small
size, product concentration, and the presence of innovation risk,
reflected in S&P's fair business risk profile assessment.  The
group's majority financial sponsor ownership by EQT, with adjusted
leverage of around 7x, underpins S&P's assessment of its financial
risk profile as highly leveraged.

S&P's positive comparable rating analysis primarily reflects
Sivantos' strong free cash flow generation and cash interest
coverage, supported by S&P's calculation of FFO to cash interest
coverage comfortably above 2x.  It further reflects S&P's view of
Sivantos' fair business risk profile, reflecting that the company
is steadily improving its EBITDA margin.

The stable outlook reflects S&P's expectation that, over the next
12-18 months, Sivantos will further improve its recent operating
performance, despite pricing pressure and the consolidated nature
of the hearing instruments industry.  S&P anticipates that the
group will maintain its market position and an EBITDA margin at
about 25%, through the successful commercialization of new
products, realization of planned operational efficiencies, and
improving its channel mix.  S&P views adjusted FFO cash interest
coverage comfortably exceeding 2x at all times, as is commensurate
with the 'B+' rating.

S&P could lower the ratings if adjusted FFO cash interest coverage
falls below 2x or, in S&P's view, Sivantos' liquidity deteriorates
to below adequate.  This would most likely occur if Sivantos
experiences adverse operating developments that would lead to
significantly weaker EBITDA, likely due to its binax product not
successfully gaining traction in the market due to significant
competition, or the group facing difficulties in growing its share
of independent sector revenues.

S&P is unlikely to consider a positive rating action over the next
12-18 months, as it projects debt to EBITDA to remain above 5x
and, therefore, in the highly leveraged category.  However, S&P
would likely take a positive rating action if the company
sustained adjusted debt to EBITDA of less than 5x.  In view of the
amount of deleveraging required to achieve this, S&P considers it
would most likely occur because of a change in financial policy.


GREENKO DUTCH: S&P Raises Senior Secured Notes Rating to 'B+'
Standard & Poor's Ratings Services assigned its 'B+' long-term
corporate credit rating to Mauritius-based Greenko Energy
Holdings, an affiliate of GIC Pte. Ltd.  The outlook is positive.

At the same time, S&P withdrew its 'B' long-term corporate credit
rating on Greenko Group PLC.  S&P had placed this rating on
CreditWatch with positive implications on Sept. 2, 2015.  Greenko
is the new holding company for all the India-based power assets
and liabilities that Singapore-based GIC acquired from Greenko

At the same time, S&P raised its long-term issue rating on the
senior secured notes issued by Greenko Dutch B.V. to 'B+' from
'B'.  Greenko now guarantees these notes, which were previously
guaranteed by Greenko Group.

"The rating reflects Greenko's high leverage, short but improving
track record, and small size," said Standard & Poor's credit
analyst Abhishek Dangra.  In addition, some of the company's
customers have weak credit quality, and the cash flows from wind
assets are seasonal.  The strength of Greenko's regulated
renewable power generation business and declining execution risk
temper these weaknesses.

Singapore sovereign wealth fund GIC's affiliate Greenko has
acquired all the assets and liabilities of Greenko Group and
completed the necessary formalities to become the owner of the
assets and guarantor of the notes.

"In our view, GIC's stake could lower Greenko's cost of borrowing
(including refinancing of existing debt), provide greater clarity
on its financial policies, and strengthen its risk management
practices," Mr. Dangra said.  "Under GIC's ownership, Greenko has
decided to hedge its entire foreign currency borrowings,
significantly reducing currency risk."

GIC considers Greenko as an important investment.  The acquisition
will be the first and sole direct corporate investment in which
GIC has a majority stake and board control.  However, Greenko is
relatively smaller and one of many investments in GIC's large
investment portfolio.

Greenko's cash flows are likely to improve gradually over the next
two years.  However, the ratio of funds from operations (FFO) to
debt is likely to remain well below 10% over the next 12-24
months, barring any strategic measures to deleverage.

GIC is committed to reducing leverage at Greenko to a debt-to-
EBITDA ratio of less than 5x by clearly defining growth strategy,
funding, and capital structure.  S&P however, believes greater
clarity may emerge only gradually over the next 12 months.

In S&P's view, the continuation of the promoters and management
team from Greenko Group will help maintain Greenko's good
execution track record and day-to-day operations.

Greenko is a small player in the large and fragmented Indian power
industry.  The weak credit quality of some of its customers -- the
state electricity boards in India -- could affect timely recovery
of payments and constrain the company's cash flows.  In addition,
Greenko generates almost 70% of its cash flows in the wind
business between April and September, when wind patterns are
favorable for power generation.  Nevertheless, S&P believes the
company's diversified exposure across electricity boards and
industrial customers tempers this risk.  Greenko also has
successfully completed a number of small wind and hydro projects
in India.

"The positive outlook reflects our expectation that Greenko will
improve its operating performance as weather patterns normalize,
and reduce its leverage over the next 12-18 months," Mr. Dangra

S&P may raise the rating if it sees Greenko is deleveraging and
likely to maintain its debt-to-EBITDA ratio below 5x.  S&P will
also look for clarity on the company's growth and funding
strategy, risk management practices, and management and governance

S&P may revise the outlook to stable if Greenko's deleveraging
plans appear to be weakening.

S&P could also revise the outlook to stable if Greenko's EBITDA
interest coverage is likely to remain sustainably below 1.5x due
to: (1) high capital expenditure; (2) delays in project execution
or investor returns; or (3) operational efficiency weakening
because of lower plant load factor.

HARBOURMASTER CLO 9: Fitch Affirms 'B-sf' Rating on Cl. E Debt
Fitch Ratings has revised the Outlook on Harbourmaster CLO 9 B.V.
class D and E notes to Stable and affirmed all ratings as follows:

Class A1-T: affirmed at 'AAAsf'; Outlook Stable
Class A1-VF: affirmed at 'AAAsf'; Outlook Stable
Class A2: affirmed at 'AAsf'; Outlook Stable
Class B: affirmed at 'A-sf'; Outlook Stable
Class C: affirmed at 'BBB-sf'; Outlook Stable
Class D: affirmed at 'BB-sf'; Outlook revised to Stable from
Class E: affirmed at 'B-sf'; Outlook revised to Stable from

Harbourmaster CLO 9 is a securitization of mainly European senior
secured loans. At closing, a total note issuance of EUR770 million
was used to invest in a target portfolio of EUR750.75 million. The
portfolio is actively managed by GSO / Blackstone Debt Funds
Europe Limited


The affirmation and revised Outlook reflects increased credit
enhancement and slightly improved asset performance. Credit
enhancement available to the rated notes has increased
significantly over the past 12 months due to the deleveraging of
the transaction following the end of the reinvestment period. The
senior notes A1 have paid down by EUR143.8 million, GBP27.1
million and USD0.95 million between December 2014 and December

The reinvestment period ended in April 2014. Reinvestment of
unscheduled principal proceeds is allowed until April 2016 subject
to several conditions being satisfied. These include the class A1
notes not being downgraded below their initial ratings, all
portfolio profile and coverage tests being satisfied prior and
after the reinvestment and the maturity date of the new assets
being no longer than the maturity date of the older assets that
generated the proceeds.

In October 2015, the class A1 notes were upgraded by another
agency to their initial ratings. In the collateral manager's and
trustee's views, the transaction now satisfies the above mentioned
reinvestment criteria and, as a consequence, the transaction may
reinvest unscheduled principal proceeds until the payment date in
April 2016. Between October and December 2015, approximately
EUR13.4 million of principal proceeds were used for reinvestment.

The Fitch weighted average rating factor, as calculated by the
trustee, has decreased to 26.1 from 27.9 over the past year and
the Fitch weighted average recovery rate has increased to 73.5
from 73.3. In the same period the weighted average spread (WAS) of
the portfolio fell to 4.09% from 4.23%. All these metrics continue
to maintain a significant buffer against the covenanted levels.

There are currently no defaulted assets in the portfolio and 'CCC'
obligations represent approximately EUR5 million. As of the
December 2015 trustee report, all the coverage tests are passing
with a buffer.

The transaction documents allow the issuer to invest up to 40% of
the portfolio notional into non-euro obligations. These assets are
either asset-swapped, or naturally hedged if denominated in
sterling or US dollars by a corresponding draw in the same
currency on the multi-currency class A1-VF notes. Since the end of
the reinvestment period, no additional advances are possible.
Fitch has found that the transaction can withstand the various
combinations of interest rate and currency stresses overlaid with
default skews between sterling, USD and euro assets at proposed
rating stress levels.


In its rating sensitivity analysis, Fitch found that a 25%
increase of the default probability could result in downgrade of
up to two notches for the class A1 and A2 notes and one notch for
the mezzanine and junior notes. A 25% reduction of the recovery
rate could result in a downgrade of up to three notches across all
the notes.


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

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.

LA PLACE: Jumbo to Take Over Business, 5-10 Outlets to Close
------------------------------------------------------------ reports that the Jumbo supermarket group is taking
over the bankrupt La Place restaurant group set up by the V&D
department store chain.

Jumbo, the second biggest supermarket group in the Netherlands
with a 17% market share, will continue to run the restaurants
under the La Place name, discloses.

According to, news agency ANP said between five and
10 of the 60 independent outlets will close.  ANP said the La
Place restaurants inside V&D department stores are not included in
the deal, although Jumbo is interested in taking them over once
V&D's future has been determined, notes.

V&D's official receivers also said talks on the takeover of the
stores themselves are continuing with "two serious candidates plus
others", relates.  V&D was declared bankrupt at the
end of last year, recounts.

NORTH WESTERLY CLO III: S&P Raises Rating on Cl. E Notes to CCC+
Standard & Poor's Ratings Services raised its credit ratings on
North Westerly CLO III B.V.'s class B, C, D, and E notes, and Q
combo notes.  At the same time, S&P has affirmed its rating on the
class A notes.

The rating actions follow S&P's analysis of the transaction's
performance and the application of its relevant criteria.

Since S&P's May 30, 2014 review, the class A notes have continued
to amortize and are currently at 6% of their initial principal
amount.  The class E notes have benefitted from turbo redemptions
and their balance is now 62% of their initial amount.  Taking into
account the notes' amortization and the evolution of the total
collateral amount, overcollateralization has increased for all the
rated classes of notes since S&P's previous review.

The class Q combo notes have continued to receive distributions
from their class D and class E components.  The rated balance of
the class Q combo notes has reduced to 46% of the initial balance.

S&P subjected the capital structure to its cash flow analysis to
determine the break-even default rate (BDR) for each class of
notes at each rating level.  The BDRs represent S&P's estimate of
the level of asset defaults that the notes can withstand and still
fully pay interest and principal to the noteholders.

S&P has estimated future defaults in the portfolio in each rating
scenario by applying its updated corporate collateralized debt
obligation (CDO) criteria.

S&P's analysis shows that the available credit enhancement for the
class B, C, D, and E notes, and Q combo notes is now commensurate
with higher ratings than those previously assigned.  Therefore,
S&P has raised its ratings on these classes of notes.

Due to the large concentration of obligors in the portfolio
(currently 21, compared with 43 at our previous review), the
application of S&P's largest obligor test, which is a supplemental
stress test that S&P outlines in its corporate CDO criteria,
capped our ratings on the class B, C, D, and E notes, and Q combo

S&P's analysis also indicates that the available credit
enhancement for the class A notes is still commensurate with the
currently assigned rating.  Therefore, S&P has affirmed its
'AAA (sf)' rating on the class A notes.

North Westerly CLO III is a cash flow collateralized loan
obligation (CLO) transaction managed by NIBC Bank N.V.  A
portfolio of loans to mainly European speculative-grade corporates
backs the transaction.  North Westerly CLO III closed in August
2006 and its reinvestment period ended in October 2012.


Class               Rating
            To                From

North Westerly CLO III B.V.
EUR432.8 Million Secured Floating-Rate Notes

Rating Affirmed

A           AAA (sf)

Ratings Raised

B           AA+ (sf)          A+ (sf)
C           BBB+ (sf)         BB+ (sf)
D           BB+ (sf)          B- (sf)
E           CCC+ (sf)         CCC (sf)
Q combo     BB+ (sf)          B- (sf)

WINDERMERE X: Moody's Lowers Rating on Cl. X Notes to Caa3
Moody's Investors Service has downgraded the rating of one class
of notes issued by Windermere X CMBS Limited (Notes).

Moody's rating action is:

  EUR0.05 million (current outstanding balance of EUR0.005M)
  X Notes, Downgraded to Caa3 (sf); previously on April 29, 2014,
  Affirmed B2 (sf)

Moody's does not rate the Class D, Class E and Class F Notes.


The downgrade action reflects Moody's increased loss expectation
for the pool after the repayment of the largest loan in the pool.
The Class X Notes reference the underlying loan pool.  As such,
the key rating parameters that influence the expected loss on the
referenced loan pool also influence the rating on the Class X
Notes.  The rating of the Class X Notes was based on the
methodology described in Moody's Approach to Rating Structured
Finance Interest-Only Securities published in October 2015.

Methodology Underlying the Rating Action:

The principal methodology used in this rating was Moody's Approach
to Rating EMEA CMBS Transactions published in July 2015.

Other factors used in this rating are described in European CMBS:
2014-16 Central Scenarios published in March 2014.


To date, EUR60.1 million of losses have been realized on the
securitized portion of the loans which have been partially or
fully allocated to the Class E and F Notes.  Moody's expects a
significant amount of losses on the remaining securitized


Below are Moody's key assumptions for the two outstanding loans.

Fortezza Loan - LTV: 123.7% (Whole)/ 123.7% (A-Loan); Total
Default Probability: N/A - Defaulted; Expected Loss 30%-40%.

The largest loan, the Fortezza loan (EUR 95.2 million -- 86% of
the pool) comprises two cross collateralized loans -- one secured
by an office tower in Naples let to Enel and the other secured by
five office properties throughout Italy with Enel and ASL as the
main tenants.  Moody's value is in line with the most recent
reported market value as at November 2015 of EUR76.2 million.  On
Nov. 16, 2015, a Special Servicer notice was issued outlining that
that the loan date will be extended to Jan. 15, 2017, provided
that the borrower achieves sales of both the Sesto Property and
the Pavia Property by March 31, 2016.

Lightning Dutch Loan - LTV: 71.6% (Whole)/ 71.6% (A-Loan); Total
Default Probability: N/A - Defaulted; Expected Loss 0%-10%.

The second loan, the Lightning Dutch loan (EUR 12.4 million -- 11%
of the pool) comprises a mixed-use property in Leusden,
Netherlands (50 km South East of Amsterdam).  The loan was
transferred to special servicing on Oct. 19, 2012, due to a cure
payment not being made from after an LTV breach as per the terms
of the facility agreement.  Moody's value of the property is
EUR17.3 million.


JSW: Poland Seeks to Reach Compromise with Bondholders
PAP Business reports that Energy Minister Krzysztof Tchorzewski
said Poland hopes to avoid "any drastic solutions" regarding JSW,
declining rumors that the country issued an ultimatum to JSW

"We hope to avoid any drastic solutions," Mr. Tchorzewski, as
cited by PAP, said, declining press rumors that the Treasury gave
an ultimatum to JSW's bondholders and demanded that they agree to
reducing debt or converting it into JSW equity or the miner will
go bankrupt.  "The issue was not put in such terms."

The minister said Poland "hopes for understanding from creditors"
as JSW "is in a difficult situation" and solutions have to be
found "so that the company can survive this period", PAP

Mr. Tchorzewski pointed to large problems on the coke market, with
capacity surplus and symptoms of "a substantial crisis" in
infrastructural investments, PAP relays.

The daily Parkiet reported on Jan. 27 that the Treasury gave an
ultimatum to JSW bondholders, PAP relays.  The list of JSW
bondholders includes banks PKO BP, ING BSK and BGK, as well as
funds from the PZU insurer group, PAP discloses.

In early December, JSW said it extended the stand-still agreement
with its bondholders to June 30, 2016, securing time to reach a
debt restructuring deal, PAP recounts.

JSW is a Polish coking coal producer.

PFLEIDERER GRAJEWO: Moody's Assigns B1 CFR, Outlook Positive
Moody's Investors Service has assigned a B1 corporate family
rating and a B1-PD probability of default rating to Pfleiderer
Grajewo S.A., the new ultimate holding company of Germany-based
Pfleiderer group, upon its successful capital increase through a
public offering and reverse takeover of Pfleiderer GmbH completed
on Jan. 19, 2016.  Concurrently, Moody's has upgraded to B2 (LGD4)
from B3 (LGD4) the rating of the EUR322 million senior secured
notes (due 2019), issued by Pfleiderer GmbH.  The outlook on all
ratings is positive.

Moreover, Moody's has withdrawn the B2 CFR and B2-PD PDR assigned
to Pfleiderer GmbH for reorganization reasons following the
takeover by Pfleiderer Grajewo S.A.

The rating actions conclude the review process for Pfleiderer
GmbH, initiated on July 1, 2015, when the intention of a capital
increase by Pfleiderer Grajewo S.A. and subsequent reverse
takeover of Pfleiderer GmbH was announced.

"The B1 CFR assigned to Pfleiderer Grajewo S.A. and withdrawal of
Pfleiderer GmbH's CFR reflect the change in Pfleiderer's corporate
and legal structure in which Pfleiderer Grajewo S.A. has become
the ultimate parent company and top entity of the restricted
financing group", says Goetz Grossmann, Moody's lead analyst for
Pfleiderer.  "The assigned B1 CFR and upgrade to B2 of the senior
secured notes acknowledge Pfleiderer's improved financial
performance through 2015 and a materially strengthened position of
Pfleiderer's bondholders.  Moody's further expects Pfleiderer to
benefit from a continued supportive sentiment in its German and
Polish core end-markets this year and in 2017 and to lift
significant synergies from the integration of its Core East and
Core West operations over the next three years.  This should
enable the company to continue improving its Moody's-adjusted
credit metrics which position the company strongly in its current
rating category, as indicated in the positive outlook", adds
Mr. Grossmann.

List of Affected Ratings:


Issuer: Pfleiderer Grajewo SA.

  Probability of Default Rating, Assigned B1-PD

  Corporate Family Rating, Assigned B1


Issuer: Pfleiderer GmbH

  Senior Secured Regular Bond/Debenture, Upgraded to B2 (LGD4)
   from B3 (LGD4)


Issuer: Pfleiderer GmbH

  Probability of Default Rating, Withdrawn , previously rated

  Corporate Family Rating, Withdrawn , previously rated B2

Outlook Actions:

Issuer: Pfleiderer GmbH

  Outlook, Changed To Positive From Rating Under Review

Issuer: Pfleiderer Grajewo SA.

  Outlook, Assigned Positive


The rating actions follow Grajewo's acquisition of Pfleiderer GmbH
(completed on Jan. 19, 2016,) that was financed by the net
proceeds from a capital increase and Grajewo's further intention
to reduce the overall indebtedness of the combined group.  With
the capital increase and reverse takeover of Pfleiderer GmbH,
Grajewo's free float has increased to around 50% with Atlantk S.A.
(c.25% shareholding) and certain funds managed by or advised by
investment firm Strategic Value Partners, LLC (or an affiliate)
(c.26%) as its key shareholders.

At the same time and as part of the transaction, Pfleiderer has
reached consent from its bondholders for certain amendments and
waivers related to the EUR322 million senior secured notes in
connection with the acquisition.  For instance, besides consent to
the acquisition to become effective, amendments comprised an
enhanced security package which now also includes essentially all
assets pledged by Grajewo and certain of its restricted
subsidiaries, which have also joint as additional notes
guarantors.  With this and the fall-away of previously two
separated restricted groups (Core East and Core West) and the
respective leverage imbalance, bondholders have also gained
indirect access to cash flows generated at Core East entities,
which had been limited prior to the acquisition.

However, Moody's cautions that in order to successfully complete
the bookbuilding process and capital increase, Grajewo had to
concede a fairly shareholder-friendly dividend policy which allows
for cash distributions of up to 70% of consolidated net income of
the group.  Although Moody's expects Pfleiderer's free cash flows
to remain modestly positive, projected sizeable dividend payments
will significantly diminish the group's cash flow generation from
fiscal year 2016 onwards.

That said, the transaction has meaningfully enhanced Pfleiderer's
credit profile, resulting in the assigned B1 CFR with a positive
outlook which is one notch higher than the withdrawn B2 CFR of
Pfleiderer GmbH before the reverse takeover by Grajewo.  In
addition, the rating action reflects Pfleiderer's sound operating
performance during 2015 against the backdrop of healthy growth
across its key regions and most product segments with higher
demand for more value-add solutions.  On a Moody's-adjusted basis,
the agency expects Pfleiderer to at least maintain EBITDA margins
of close to 14% over the next 2-3 years, which is further
supported by expected synergies from the group's ongoing
integration (up to EUR30 million targeted by management).  Moody's
therefore anticipates Pfleiderer to steadily reduce its leverage
towards a Moody's-adjusted debt/EBITDA ratio of 3x by 2017, which
also assumes the repayment of all outstanding debt at Core East,
currently amounting to around EUR15 million.


Moody's regards Pfleiderer's liquidity as good.  The agency
expects that cash and cash equivalents on the balance sheet
reported as of Dec. 31, 2015, together with internally generated
cash flows from operations before working capital changes and
expected net proceeds from the share capital increase in January
2016, will comfortably cover all expected cash needs over the next
12-18 months.  Projected cash uses mainly include capital
expenditures, dividend payments of up to 70% of consolidated net
income, as well as minor repayments of outstanding debt at Core
East entities.  This translates into expected modestly positive
free cash flows in 2016 (including temporarily increasing tax
payments), before improving in 2017.

Moreover, the liquidity assessment of Pfleiderer takes into
account access to EUR60 million and PLN200 million of commitments
under the group's amended revolving credit facilities (unrated and
maturing April 2019).  These facilities are subject to one
maintenance (net leverage) covenant, although Moody's expects
Pfleiderer to maintain comfortable headroom thereunder at any


The positive outlook reflects the expectation of Pfleiderer's
operating performance to benefit from overall stable demand in its
relevant industries and regions in the next 2-3 years.  This, as
well as expected cost savings in connection with the ongoing
integration of the combined group, should support constant
earnings growth and, consequently, a gradual reduction in Moody's-
adjusted leverage to below 3.5x debt/EBITDA over the next 12-18
months.  The positive outlook also assumes that Pfleiderer will
remain positive free cash flow generative after payment of regular
dividends, although Moody's would expect such payments to be
aligned with Pfleiderer's business performance.


Positive rating pressure could develop if Pfleiderer was able to
(1) maintain its current profitability with Moody's-adjusted
EBITDA margins of around 14%, (2) gradually increase earnings as
expected resulting in the visibility of its Moody's-adjusted
debt/EBITDA declining below 3.5x by the end of 2016, (3) improve
interest coverage such as EBITDA/interest expense exceeding 3x,
and (3) continue generating positive free cash flows, translating
into mid-single-digit FCF/debt ratios.

Negative pressure on Pfleiderer's ratings might evolve should (1)
profitability weaken, evidenced by Moody's-adjusted EBITDA margins
dropping below 12%, (2) leverage as adjusted by Moody's exceed 4x
debt/EBITDA, and (3) free cash flow turn negative.  Moreover, a
deteriorating liquidity profile would exert downward pressure on
Pfleiderer's ratings.


In its Loss Given Default (LGD) analysis of Pfleiderer (reflecting
the new legal structure of the group with Pfleiderer Grajewo S.A.
as the top holding entity of the restricted group and no
restrictions of Pfleiderer GmbH's bondholders to access cash
generated by Core East entities), Moody's ranks first the EUR60
million and PLN200 million (c. EUR105 million equivalent) super
senior revolving credit facilities (unrated).  The ranking of
combined trade payables of the group are aligned with the RCF,
given the instrument's significant amount relative to the total
financial debt of the group.  Lastly, pension obligations and
lease rejection claims are modeled as unsecured and, hence, rank
last in the priority of claims waterfall.

Considering the sizeable amount of debt ranking senior to the
senior secured notes, the LGD indicates a notching of the
instrument rating on the senior secured notes to B2 (LGD4), i.e.
one notch below the assigned B1 CFR.


The principal methodology used in these ratings was Global Paper
and Forest Products Industry published in October 2013.

Pfleiderer Grajewo S.A., headquartered in Wroclaw, Poland, is one
of the leading manufactures in the European ecological wood-based
products and solutions, with origins dating back to 1894.  The
company, which serves customers in the construction and furniture
industry, employs more than approximately 3,300 people and
operates 8 production facilities across Germany and Poland.  The
Pfleiderer group is listed as Pfleiderer Grajewo S.A. on the
Warsaw Stock Exchange.


KAZANORGSINTEZ PJSC: Fitch Hikes Issuer Default Rating to 'B'
Fitch Ratings has upgraded Russia-based chemical producer PJSC
Kazanorgsintez's (KOS) Long-term Issuer Default Rating (IDR) to
'B' from 'B-'. Outlook is Stable. The Short term IDR is affirmed
at 'B'.

The upgrade reflects KOS's consistent multi-year absolute debt
reduction and an improvement of its liquidity position following
the successful repayment of USD101 million eurobonds in March
2015. Fitch expects KOS's funds from operations (FFO) adjusted net
leverage to have fallen to its historical minimum of 0.3x in 2015,
after 0.9x in 2014 and above 2x in previous years.

The Stable Outlook reflects our view that the company will
maintain adequate liquidity and moderate leverage consistent with
the current IDR. It also incorporates the weak visibility of KOS's
2016-2020 investment program schedule, which will impact the
company's re-leveraging path.


Liquidity Robust after Eurobonds Repayment

KOS accumulated sufficient liquidity to repay its USD101 million
eurobonds in March 2015 as well as other smaller maturities. It
entered 2H15 with a moderate RUB12.1 billion total debt (FYE14:
RUB19.7 billion), which included RUB4.2 billion short-term debt,
against a RUB9.8 billion cash and deposit cushion. The repayment
schedule for the remaining debt is fairly smooth, allowing KOS to
comfortably cover it in 2H15 and 2016 with available cash and its
free cash flow (FCF) generation.

Leverage Minimal; to Rise

KOS's deleveraging has been better than our previous expectations
as a weak rouble helped the company to generate stronger FCF since
4Q14 on its USD-denominated exports (approximately 20% of total
sales). Leverage reached 0.9x at end-2014, and we expect it to
fall below 0.5x on strong operational cash flow, moderate capex
and a 30% dividend payout. These leverage levels are considered
strong relative to the IDR.

The company's intent to shift to large-scale expansionary
investments from current smaller-scale optimization capex between
late 2016 and 2020 results in a lack of visibility on future FCF
generation and re-leveraging. However, current leverage provides
reasonable headroom for additional capex, and there is no
immediate rating pressure from the future investment cycle, as
reflected in the Stable Outlook.

Resilient Polymer Market until 2017

The pricing of the Russian polymer market has moderate links with
European and Asian market price levels. European market prices
have shown resilience, despite a cheaper naphtha (direct oil
derivative) input as polymer capacities lack output flexibility,
and benefit from resilient retail and transportation end-markets.
Russian polymer prices therefore further increased in 2015, and we
estimate KOS's revenue at above RUB60 billion in 2015 and 2016 and
margins at a record 30%-32%.

"We, however, expect significant capacity additions from the US
and a recovering rouble to shave 5%-10% off the prices of KOS's
export and domestic sales in 2017 and 2018, taking revenues and
margins back towards 2014 levels. We also conservatively assume
KOS's output volumes will remain flat at 2015 levels. "

Supply Contract Renewal in 2015

KOS renewed its ethane supply contract with OAO Gazprom
(BBB-/Negative) in 4Q15 for another 10 years with comparable terms
and conditions. The contract linearly links ethane purchasing
price with the polyethylene selling price, stabilizing KOS's
margins. The contract secures supply from KOS's key ethane
supplier, given the lack of immediately available and sufficient

Rating Constraints

The ratings are constrained by KOS's exposure to commodity
chemicals, the small size of the company relative to global
diversified chemical groups competing in its core polymer markets,
its single-site operations and limited product and geographical
diversification. Finally, the ratings incorporate higher-than-
average legal, business and regulatory risks in Russia (BBB-
/Negative/F3) and a lack of information on KOS's ultimate


-- Russian polymer prices to rise 5% in 2016 before falling 10%
    in 2017 and 5% in 2018

-- KOS's polyethyelene and polycarbonate volumes conservatively
    assumed to be flat until 2018

-- $US/RUB to hit 65 in 2016 and fall back towards 50 by 2018

-- New investment cycle with capex/sales approaching 35%
    starting from 2017 (2015E: 8%)

-- High capex and 30% dividends payout ratio to push leverage to
    2x by 2018 (2015E: 0.6x)


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

-- Better visibility of the future investment schedule coupled
    with FFO adjusted net leverage being sustained below 2.0x;

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

-- Aggressive investments or prolonged market deterioration
    leading to FFO adjusted net leverage above 4.0x on a
    sustained basis;

-- Liquidity shortfall leading to FFO fixed charge coverage
    falling below 3.0x (2015E: 10x);

-- Increasing reliance on FX debt leading to material FX
    mismatch between debt and earnings


Liquidity was adequate at end-2014, with RUB4.1 billion cash and
RUB6.1 billion deposits covering RUB8.8 billion short-term debt,
including RUB6.1 billion eurobonds due in 1Q15. Liquidity
strengthened further in 1H15 as RUB9.8 billion cash and short-term
deposits comfortably covered RUB4.2 billion short-term debt.
Strong positive FCF in 1H15 resulted in improved liquidity during
1H15 and Fitch expects this to help KOS comfortably cover its debt
repayment peak in 2016.


PEKO: Dozens Handed Discharge Notices as Firm Folds
--------------------------------------------------- reports that dozens of staff of the troubled
shoemaker Peko received discharge notices on Jan. 25, days after
receivership was declared at the legendary company.


BBVA RMBS 2: S&P Affirms B-(sf) Rating on Class C Notes
Standard & Poor's Ratings Services raised its credit ratings on
BBVA RMBS 2, Fondo de Titulizacion de Activos's class A2, A3, and
A4 notes.  At the same time, S&P has affirmed its ratings on the
class B and C notes.

The rating actions follow S&P's Oct. 2, 2015 raising to 'BBB+'
from 'BBB' of its long-term sovereign rating on Spain and the
application of S&P's updated criteria for rating single-
jurisdiction securitizations above the sovereign foreign currency

S&P has also applied its Spanish residential mortgage-backed
securities (RMBS) criteria, as part of S&P's credit and cash flow
analysis, and its current counterparty criteria.

Under S&P's RAS criteria, it has applied a hypothetical sovereign
default stress test to determine whether a tranche has sufficient
credit and structural support to withstand a sovereign default and
so repay timely interest and principal by legal final maturity.

S&P's RAS criteria designate the country risk sensitivity for RMBS
as moderate.  This transaction's notes can therefore be rated four
notches above the sovereign rating, if they have sufficient credit
enhancement to pass a minimum of a severe stress.  However, if all
six of the conditions in paragraph 44 of S&P's RAS criteria are
met, S&P can assign ratings up to a maximum of six notches (two
additional notches of uplift) above the sovereign rating, subject
to credit enhancement being sufficient to pass an extreme stress.

Following the application of S&P's RAS criteria, its current
counterparty criteria, and S&P's RMBS criteria, it has determined
that its assigned rating on each class of notes in this
transaction should be the lower of (i) the rating as capped by
S&P's RAS criteria, (ii) the rating as capped by S&P's
counterparty criteria, and (iii) the rating that the class of
notes can attain under S&P's RMBS criteria.  In this transaction,
S&P's ratings on the class A2 and A3 notes are constrained by its
current counterparty criteria.

The transaction's performance remains stable, albeit weak.  As of
December 2015, the transaction's level of undercollateralization
was EUR53,630,640, compared with EUR55,894,080 12 months ago.  As
a result of continued weak performance, the volume of cumulative
defaults rose to 5.56% of the initial balance by December 2015.
In a stress scenario, the transaction is now closer to breaching
the cumulative interest deferral triggers that reprioritize the
combined waterfall in favor of the class A2, A3, and A4 notes.

When S&P applies its severe stresses under its RAS criteria, the
class C interest deferral triggers are being breached due to the
higher observed cumulative defaults.  As a result, the class A2,
and A3 notes are now able to withstand the severe stresses.

Despite the breach of both the class B and C notes' interest
deferral triggers in S&P's extreme stress scenarios, the A2 and A3
notes have insufficient available credit enhancement to withstand
these stresses.  As a result, S&P can only rate the notes up to
four notches above the long-term sovereign rating.

However, the application of S&P's current counterparty criteria
caps the maximum potential rating in this transaction at 'A+
(sf)'.  This is because, under S&P's criteria, the long-term
rating on the swap counterparty, Deustche Bank AG (London Branch)
(BBB+/Stable/A-2), can only support a 'A+' rating under
replacement option 1 without collateral.

S&P has therefore raised to 'A+ (sf)' from 'BBB (sf)' its ratings
on the class A2 and A3 notes.

The transaction does not address commingling risk in line with
S&P's current counterparty criteria, and S&P has therefore applied
stresses for rating levels above the long-term rating on the
collection account holder, Banco Bilbao Vizcaya Argentaria S.A.
(BBVA) (BBB+/Stable/A-2).  The class A4 notes are now able to
support a 'BBB+ (sf)' rating level under S&P's Spanish RMBS
criteria when it do not apply its transaction-specific commingling
stresses.  S&P has therefore raised to 'BBB+ (sf)' from 'BB+ (sf)'
its rating on the class A4 notes.  This rating is now linked to
S&P's long-term rating on BBVA.

S&P has affirmed its 'BB (sf)' rating on the class B notes
following the results of our cash flow analysis, under which S&P
did not apply its transaction-specific commingling stresses.  At
the same time, S&P has affirmed its 'B- (sf)' rating on the class
C notes following the application of S&P's 'CCC' ratings criteria.
S&P applies this criteria because the class C notes fail its cash
flow model stresses, but S&P do not rate them 'CCC' or below
because it do not see a one-in-three likelihood of default within
12 months.  As with the class A4 notes, S&P links its ratings on
the class B and C notes to its long-term rating on BBVA.

In S&P's opinion, the outlook for the Spanish residential mortgage
and real estate market is not benign.  S&P therefore increased its
expected 'B' foreclosure frequency assumption to 3.33% from 2.00%
when S&P applies its RMBS criteria.  S&P bases these assumptions
on its expectation of continuing high unemployment in 2016.

Spain's economic recovery is gaining momentum, but this is
currently only supporting a marginal improvement in the collateral
performance of transactions in S&P's Spanish RMBS index.  Despite
positive macroeconomic indicators and low interest rates,
persistent high unemployment and low household income ratios
continue to constrain the RMBS sector's nascent recovery, in S&P's

S&P expects severe arrears in the portfolio to remain vulnerable
to downside risks.  These include high unemployment and fiscal
tightening.  On the positive side, S&P expects interest rates to
remain low for the foreseeable future and anticipate stronger
economic growth.

BBVA RMBS 2 is a Spanish RMBS transaction, which closed in March
2007.  The transaction securitizes a pool of first-ranking
mortgage loans granted to prime borrowers, which BBVA originated.
The portfolio is mainly located in Catalonia, Andaluc°a, and


Class              Rating
            To                From

BBVA RMBS 2, Fondo de Titulizacion de Activos
EUR5 Billion Residential Mortgage-Backed Floating-Rate Notes

Ratings Raised

A2           A+ (sf)          BBB (sf)
A3           A+ (sf)          BBB (sf)
A4           BBB+ (sf)        BB+ (sf)

Ratings Affirmed

B            BB (sf)
C            B- (sf)


ROSINKA: Court Recognizes Two Claims Under Bankruptcy Proceedings
Ukrainian News Agency reports that that the Economic Court of
Vinnytsia Region has recognized as lawful the cash claims by
Telara LLC and Sberbank to PJSC Kyiv Soft Drinks Factory Rosinka,
a big soft drinks-maker, as part of bankruptcy proceedings for a
total of UAH961,094,618.

In July 2015, Rosinka and Telara, a company providing
consultations for business processes and corporate governance,
drew up a purchase/sale agreement for 30,495 registered investment
securities for a total of UAH600,019,620, Ukrainian News recounts.

Under the contract, Rosinka has to repay the debt ahead of time
for breaking the payment schedule, Ukrainian News discloses.

The Economic Court of Vinnytsia Region on October 26, 2015, opened
Rosinka bankruptcy proceedings, Ukrainian News relates.

Rosinka incurred a loss of UAH143.573 million in 2014, saw its net
revenue at UAH231.013 million, an increase by UAH6.281 million or
2.79% against 2013, Ukrainian News relays.

Vinnytsia-based Rosinka makes medicinal waters and refreshment

U N I T E D   K I N G D O M

FAIRLINE BOATS: Saved in Sell Off by Administrators
--------------------------------------------------- reports that the Northamptonshire-based boatbuilder
Fairline has been saved after administrators announced it has been
sold to a new company.

Fairline Boats, which specializes in the design, engineering,
manufacture and distribution of luxury boats has been sold to new
owner and investor Fairline Acquisitions, according to

It will be run by Russell Currie, who has been a Fairline dealer
for 18 years where he has made sales of more than GBP90 million,
the report notes.

The administrators said it is anticipated that Fairline design and
boat building will continue in the UK, operating from the
business' premises in Oundle, the report relays.

Fairline Acquisitions will take responsibility for finishing and
completing any outstanding boats orders and expects to resume
production after completing an assessment of the range of boat
models, the report says.

When Fairline Boats went into administration, nearly 400 jobs were
lost, mainly in Oundle and Corby, but 72 staff were retained, the
report notes.

It's not yet known if any new jobs will be created as a result of
the deal, the report adds.

HOKKEI: In Administration, Feb. 1 Creditors' Meeting Set
BBC News reports that Hokkei, an Asian takeaway business founded
by two Masterchef finalists in Cardiff, has gone into

According to BBC, Hokkei failed to reopen after Christmas and the
company website has been taken offline.

A meeting of creditors will be held at the Hilton Hotel in Newport
on Feb. 1, BBC discloses.

CVR Global has been appointed to deal with the insolvency, BBC


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

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

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


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

Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez,
Joy A. Agravante, 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
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Information contained herein is obtained from sources believed to
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