/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/160202.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, February 2, 2016, Vol. 17, No. 022 Headlines A Z E R B A I J A N AZERBAIJAN: Closes Six Banks Due to Lack of Capital Requirements AZERBAIJAN: S&P Cuts Sovereign Ratings to BB+/B, Outlook Stable C R O A T I A CROATIA: Fitch Affirms 'BB/BB+' Long-Term IDRs, Outlook Negative G E R M A N Y PFLEIDERER GMBH: S&P Raises CCR to 'B', Outlook Positive G R E E C E GREECE: Creditors' First Bailout Review Set to Start This Week N E T H E R L A N D S LEOPARD CLO V: Moody's Affirms Caa3 Rating on Class F Notes METINVEST BV: UK Court Okays Eurobond Repayment Moratorium STORM 2016-I: Fitch Assigns 'BB+sf' Rating to Class E Notes ZIGGO GROUP: S&P Affirms 'BB-' Long-Term CCR, Outlook Stable R O M A N I A ROMANIAN AUTHORITY: Goes Bankrupt, Administrator Appointed R U S S I A ANTONOV: Denies Liquidation Reports S P A I N ABENGOA SA: To Mothball Solar-Thermal Power Plant in Chile AYT GOYA IV: DBRS Confirms B(sf) Rating on Class B Notes S W I T Z E R L A N D SPUTNIK ENGINEERING: Schaffner EMV to Dispute CHF2.9MM Claims U K R A I N E GOLDEN DERRICK: Donetsk Court Commences Liquidation Procedure U N I T E D K I N G D O M DREAMWATER LOUNGE: Gets Noise Abatement Notice Amid Fin'l Woes X X X X X X X X * S&P Raises Ratings on 17 European Companies' Debt Instruments ********* =================== A Z E R B A I J A N =================== AZERBAIJAN: Closes Six Banks Due to Lack of Capital Requirements ---------------------------------------------------------------- Zulfugar Agayev at Bloomberg News reports that Azerbaijan closed down two more private lenders, bringing to six the total number of banks shuttered in the past 10 days before parliament approves a law on insuring retail deposits in full. The central bank on Jan. 27 revoked the licenses of Atrabank ASC and Qafqaz Inkisaf Banki ASC, also known as Caucasus Development Bank, for failing to meet a minimum capital requirement of AZN50 million (US$31.3 million). It said the lenders couldn't meet their requirements to creditors and their management wasn't "reliable or prudential." Authorities are culling the banking industry to keep it immune to contagion from a currency crisis roiling the economy of the third-largest oil exporter in the former Soviet Union, Bloomberg says. According to Bloomberg, Azerbaijan imposed some restrictions on the movement of capital and announced plans to insure all retail deposits, with central bank Governor Elman Rustamov saying that five to seven banks may be merged to consolidate the industry. "The reason for this rush is clear," Samir Aliyev, an analyst at the Economic Research Center in the Azeri capital, Baku, as cited by Bloomberg, said on Facebook. "The central bank is trying to decide the fate of banks before parliament approves a law this month to insure bank deposits fully. The government doesn't want to return in full the deposits of banks that are going to be closed." The collapse in crude prices has sent the manat to the weakest on record after the central bank relinquished control of the exchange rate in December, Bloomberg discloses. AZERBAIJAN: S&P Cuts Sovereign Ratings to BB+/B, Outlook Stable --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long- and short- term foreign and local currency sovereign credit ratings on Azerbaijan to 'BB+/B' from 'BBB-/A-3'. The outlook on the long- term ratings is stable. RATIONALE The downgrade follows S&P's most recent revision of oil price assumptions. Azerbaijan depends heavily on the hydrocarbons sector; it represented about 40% of GDP and 95% of merchandise exports in 2013-2014. S&P now expects the economy will contract by 1% in 2016 as exports decline and consumption falls in the wake of the sizable devaluation of the Azerbaijani manat at the end of last year. Although the manat devaluation boosts the government's fiscal performance, the continued decline in oil prices largely offsets this. Consequently, S&P now forecasts the general government sector to run deficits on a consolidated basis (including the sovereign oil fund, SOFAZ) through 2018. S&P also expects per capita GDP, in U.S. dollar terms, to almost halve between 2014 and 2016. Since S&P's last publication, global oil prices have fallen materially. Furthermore, the foreign exchange reserves of the Central Bank of Azerbaijan (CBA) have dropped by over 40% in six months to about US$5 billion. This compares to a peak of about US$15 billion in mid-2014. Subsequently, the CBA has abandoned its peg of the manat to a basket of dollars and euros, leading to the local currency weakening by more than 30% at the end of last year against the U.S. dollar. Even though manat devaluation will help the CBA conserve remaining foreign exchange reserves and ease fiscal pressures, it will also lead to a significant decline in income levels. In particular, S&P expects GDP per capita to fall from nearly $8,000 in 2014 to about $4,100 in 2016 while inflation will spike at 15% this year compared to an average of 2% over 2012-2015. S&P forecasts that this acceleration of inflation will cut private consumption in 2016, resulting in an overall economic contraction of 1%. Growth will also be held back by a fall in government spending in real terms and reduced export volumes, which reflect the depletion of oil fields as they age. S&P understands that, absent sustained investment, oil production will likely fall by 1%-2% a year. Over the long term, Azerbaijan should benefit from production at new gas fields, which S&P expects to partly compensate for declining oil production at existing fields. In 2018, the major Shah Deniz II field in the Caspian Sea, which will bring gas from Azerbaijan to Europe, is expected to come on stream. Gas will be transported via the Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) pipelines. S&P understands that this gas project remains on track and the construction of TAP and TANAP started as planned last year. Heavy investments in the run-up to the launch of the field should return the Azerbaijani economy to real positive growth by early 2017. The weaker terms of trade have also pressured Azerbaijan's fiscal position. As a result, following more than a decade of general government surpluses, the government reported a fiscal deficit of about 5% of GDP last year (when calculating the general government balance, S&P consolidates the state budget revenues and expenditures with those of the social protection fund and SOFAZ.) However, this figure excludes government borrowing in relation to projects financed externally. Including these expenditures, the deficit amounted to about 7% of GDP. "We also now forecast deficits averaging close to 2% of GDP over 2016-2018. This contrasts with the 2% of GDP surpluses we previously expected for the same period. Moreover, we see downside risks to our revised projections. In particular, the government could find it challenging to keep spending under control while maintaining social peace. For instance, the manat devaluation at the end of last year has eased fiscal pressures from the oil price decline, but this effect will somewhat fade as the government increases certain social spending to ameliorate the decline in living standards," S&P said. Even though S&P views Azerbaijan's contingent liabilities as limited, as S&P's criteria defines the term, S&P also sees fiscal and balance-of-payment risks from ailing public sector financial and nonfinancial enterprises. In S&P's view, a number of public entities could require government support to meet their external debt commitments. S&P anticipates that the manat devaluation will also hurt the asset quality of Azerbaijan's banks. In particular, the aggregate banking system has a sizable portfolio of foreign currency loans to local residents with no underlying foreign exchange earnings. S&P anticipates a material increase in nonperforming loans, weakening the banking system's capital buffers. This in turn could have implications for the government's fiscal position in a downside scenario should the sovereign step in to provide support. "Although Azerbaijan's fiscal position has weakened, it still remains strong. It is largely supported by the sovereign oil fund, SOFAZ, whose assets are mostly invested abroad. SOFAZ assets increased to about 100% of GDP last year owing to the effect of manat devaluation. That said, SOFAZ assets expressed in U.S. dollars are on a downward trend: They have already declined from $37 billion in 2014 to under $34 billion at the end of last year. We anticipate they will drop further, to below $31 billion by 2017, based on our current oil price projections," S&P noted. Substantial SOFAZ assets also underpin Azerbaijan's strong external position: S&P estimates that the country's net external asset position peaked at about 70% of GDP as of end-2015. That said, Azerbaijan does not publish official International Investment Position statistics and S&P believes its estimates could understate external risks. Following a decade of strong current account surpluses of more than 20% of GDP on average, Azerbaijan's current account surplus declined to an estimated 0.3%of GDP last year. Even with oil prices now being significantly lower, S&P do not expect the current account to go into deficit given that the consumption decline will lead to a sharp contraction in imports this year. S&P expects the current account surplus will gradually recuperate toward the end of S&P's four year forecast horizon, especially as gas exports from the new Shah Deniz II field begin. The surpluses will remain much smaller than previously, even as the gas exports kick in, because of depletion in existing oilfields and profit repatriation to the foreign partners in the new gas field. "We continue to view Azerbaijan as having low monetary policy effectiveness. Even though the CBA abandoned the manat's peg to a basket of dollars and euros at the end of last year, we are yet to see if this will materially improve the sovereign's monetary flexibility. We estimate that, following the December 2015 currency devaluation, resident deposit dollarization has risen to about 80%, which severely limits the CBA's attempts to influence domestic monetary conditions. The CBA is also reluctant to use policy rates to defend its external position: Even though the local currency has tumbled, the central bank's key refinancing rate has remained flat at 3% since mid-2015," S&P said. In S&P's view, a fully floating exchange rate would help safeguard CBA's reserves, which have declined by two-thirds since mid-2014. However, the latest government decisions--to introduce limits on foreign currency exchange and an "exit tax" of 20% on foreign investments--suggest that the authorities still want to adopt distortive measures in the foreign exchange market to staunch further external pressure. Azerbaijan continues to face a number of domestic political and geopolitical risks. S&P believes decision-making is highly centralized and lacks transparency, which can reduce policymaking predictability. The risks of outbreaks of violence with neighbouring Armenia over the Nagorno-Karabakh territory remain, but S&P don't expect them to escalate into open, armed confrontation over the medium term. OUTLOOK The stable outlook indicates S&P's view of balanced risks to the ratings over the next 12 months. S&P could lower the ratings if economic prospects weaken more than it currently expects, for instance as a result of delayed implementation of the Shah Deniz II gas project leading to reduced investments and ultimately lower exports. S&P could also lower the ratings if external vulnerabilities were to escalate, resulting, for instance, in a further persistent decline in central bank reserves, or if domestic political risks increased in response to a significant decline in real incomes, possibly restricting the government's ability to adjust its spending. S&P could raise the ratings if Azerbaijan's growth prospects were to materially improve while the effectiveness of monetary policy increased. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee agreed that the economic assessment had deteriorated. All other key rating factors were unchanged. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. RATINGS LIST Rating To From Azerbaijan (Republic of) Sovereign Credit Rating Foreign and Local Currency BB+/Stable/B BBB-/Neg./A-3 Transfer & Convertibility Assessment BB+ BBB- ============= C R O A T I A ============= CROATIA: Fitch Affirms 'BB/BB+' Long-Term IDRs, Outlook Negative ---------------------------------------------------------------- Fitch Ratings has affirmed Croatia's Long-term foreign and local currency Issuer Default Ratings (IDRs) at 'BB' and 'BB+' respectively. The Outlooks on the IDRs are Negative. The issue ratings on Croatia's senior unsecured foreign and local currency bonds are also affirmed at 'BB' and 'BB+' respectively. The Country Ceiling is affirmed at 'BBB-' and the Short-term foreign- currency IDR at 'B'. KEY RATING DRIVERS The ratings balance Croatia's high public and external debt burdens, large fiscal deficits and weak growth performance against fairly favorable structural features. General government gross debt rose to an estimated 89% of GDP in 2015, well above the 'BB' median of 43.6%, and is only expected by Fitch to peak in 2017, at 92.4%. Gross and net external debt reached an estimated 110% and 55.3% of GDP, respectively, in 2015. However, structural features including per capita income, human development and governance indicators score well above peer medians. A new coalition government including the centre-right Croatian Democratic Union (HDZ) and a new pro-reform party, MOST (Bridge), took power in January 2016. The new administration aims to bring down public debt and implement reforms that would address many of the structural impediments to growth identified by the European Commission. However, there are doubts about the ability of the government to achieve these objectives and about the unity of the coalition as a whole. In addition, the new technocratic Prime Minister, Tihomir Oreskovic, has no experience in Croatian politics. Fitch estimates that the general government deficit narrowed to 5% of GDP in 2015 (BB median: 3.5%) from 5.6% in 2014, mostly reflecting stronger revenue growth on the back of an economic recovery. There is a high degree of uncertainty around fiscal forecasts for 2016-17 given the arrival of the new government. At present there is no full 2016 budget; a draft is expected to be presented to parliament by end-March. Under the most recent Convergence Programme (April 2015), Croatia is committed to correcting its excessive deficit (bringing the shortfall to below 3% of GDP) by 2017. The new government has announced plans to shave 1.5pp off the deficit ratio this year, but this appears optimistic. Fitch's baseline scenario is for the fiscal deficit to narrow to 4.5% of GDP in 2016 and 4% in 2017. Fitch estimates that the economy expanded 1.7% in real terms in 2015, following six consecutive years of contraction. Growth was underpinned by a strong tourism season and a boost to real net incomes from an income tax cut and low oil prices. Fitch expects the economy to grow 1.4% in 2016, rising to 1.8% in 2017. Tourism should remain an important driver of growth, helped by heightened political and security risks in many competitor markets. Oil prices will remain low, underpinning real income growth, and the labor market should continue to recover. However, the high level of corporate debt, at over 100% of GDP, is preventing a recovery of investment growth and is hindering the reallocation of resources to more productive parts of the economy. The current account surplus rose to an estimated 4.3% of GDP in 2015, from 0.7% a year ago. The increased surplus in 2015 reflected the impact of the conversion of Swiss franc retail loans into euros, which saw debits on the primary income account fall sharply in 3Q15. However, a rise in the services surplus as a result of the strong tourism season was also a contributor. Fitch forecasts a current account surplus of 2.3% of GDP in 2016. The conversion of Swiss franc retail loans imposed one-off losses on the banking sector estimated at HRK8bn (just over 2% of GDP). However, the impact was cushioned by sizeable capital buffers, with the regulatory capital adequacy ratio at a still robust 19.9% at end-3Q15. The conversion could help prevent a further deterioration of loan portfolios. Non-performing loan (NPLs) totalled 17.1% of total gross loans at end-3Q15. High foreign ownership (over 90%) in the banking sector mitigates contingent liabilities to the sovereign balance sheet. The exchange rate was fairly stable in 2015, appreciating by 0.3% against the euro for the year as a whole. The Croatian National Bank seeks to limit fluctuations in the kuna-euro exchange rate, given the economy's high level of euroisation, and has adequate reserves to do so. RATING SENSITIVITIES The Negative Outlook reflects the following risk factors that may, individually or collectively, result in a downgrade: -- Continued escalation of the public debt/GDP ratio, whether through fiscal underperformance, rising financing costs, or weaker nominal GDP growth. Future developments that may, individually or collectively, result in a revision of the Outlook to Stable include: -- Progress on fiscal consolidation leading to greater confidence that public debt/GDP will stabilize over the medium term. -- Strengthening growth prospects and competitiveness, particularly through the implementation of structural reforms. KEY ASSUMPTIONS Croatia's track record of monetary and exchange rate stability remains intact, minimizing the risks to household, corporate and public sector balance sheets, all of which are heavily euroised. ============= G E R M A N Y ============= PFLEIDERER GMBH: S&P Raises CCR to 'B', Outlook Positive -------------------------------------------------------- Standard & Poor's Ratings Services said that it raised to 'B' from 'B-' its long-term corporate credit rating on wood panel producer Pfleiderer GmbH. At the same time, S&P assigned its 'B' corporate credit rating to Pfleiderer Grajewo S.A., the new parent company of the consolidated group. The outlook on both ratings is positive. In addition, S&P is raising its issue rating on the company's EUR322 million senior secured notes issued by Pfleiderer GmbH to 'B-' from 'CCC+'. The recovery rating on the notes remains at '5' but has moved to the higher half of the range, indicating S&P's expectation of modest recovery in the event of a payment default. S&P is also raising its issue rating on the company's EUR60 million super senior revolving credit facility (RCF) due in 2019 to 'BB-' from 'B+' and withdrawing the rating at the company's request. At the time of withdrawal, the recovery rating on the super senior RCF was '1', indicating very high (90%-100%) recovery in the event of a payment default. The upgrade follows the recent announcement that Pfleiderer Grajewo has completed the capital increase and the acquisition of Pfleiderer GmbH. As part of the transaction, Pfleiderer Grajewo raised Polish zloty (PLN) 362 million (about EUR81 million) on the Warsaw Stock Exchange, which was used to fund the acquisition of its parent company Pfleiderer GmbH. Following the transaction, Pfleiderer Grajewo will be 25.3%-owned by Atlantik (a Luxembourg-based investment vehicle and previously sole owner of Pfleiderer GmbH) and 25.9% owned by investment firm SVPGlobal, while the remaining 49% will be free float. The rating on Pfleiderer Grajewo is based on S&P's assessment of the consolidated Pfleiderer group. The rating on Pfleiderer GmbH reflects its position as a core subsidiary of Pfleiderer Grajewo. "We consider the transaction as credit positive as it improves the financial risk profile of the consolidated Pfleiderer group (Pfleiderer) and leads to a more balanced shareholder structure. Nevertheless, the two major shareholders can still have significant influence over the company's financial policy due to their combined majority stake. We no longer consider the debt at Atlantik in our calculations of the adjusted credit metrics at the group and hence we estimate adjusted leverage of around 4.0x as of end-2015 (reported debt is adjusted by adding factoring, asset-backed securities [ABS], pension liabilities, and operating leasing liabilities to reported debt). We think that leverage will improve slightly in the coming years, although this will largely depend on the company's relatively shareholder friendly dividend policy, which allows it to pay out 70% of net income. We also consider it positive that the group will now be integrated with limited dividend leakage to outside investors as was previously the case when Pfleiderer GmbH held 65% of the shares in Pfleiderer Grajewo. We also take a favorable view of the opportunities for operational synergies within the group and think this could support improving EBITDA margins in the coming three years," S&P said. "We still consider Pfleiderer's business risk profile to be constrained by its exposure to the highly cyclical and commoditized wood-based panels industry, characterized by price- based competition, volatile demand, high sensitivity to raw material costs, and relatively high market fragmentation. Our assessment also reflects Pfleiderer's relatively limited size and scope, with production concentrated at eight sites in Germany and Poland, a high degree of sales geared toward mature Western European markets, and historical underinvestment in core assets. We believe that Pfleiderer's profitability will continue to remain highly dependent on the general economic environment and that a decline in consumer confidence can lead to sharp declines in sales and earnings for the company. That said, the company has performed well since the bond transaction in 2014, outperforming its financial targets, supported by an improving market environment and internal efficiency measures. We think that Pfleiderer will continue to benefit from strong market sentiment in Germany and Poland, its focus on value-added products, and a continued strong internal focus on cost savings and greater integration of the German and Polish business units," S&P noted. S&P considers Pfleiderer's lack of established operating and financial track record following the bankruptcy and restructuring as a constraint for the rating. This is reflected in S&P's negative comparable ratings analysis modifier, which could be removed if Pfleiderer continued to show resilient performance in the coming year and if S&P was to assess it as likely that Pfleiderer's cash flow generation would be less volatile than in the past. S&P's base case assumes: -- GDP growth in Germany of 2.0% in 2016 and 1.8% in 2017, supported by domestic consumption and lower energy prices. S&P also assumes GDP growth to be stronger in Poland and other parts of Eastern Europe, increasing in Poland by 3.4% in 2016 and 3.3% in 2017. -- Pfleiderer group revenues in 2016 and 2017 to grow around 3% assuming a stable pricing environment and volume growth in line with GDP. -- Adjusted EBITDA margins of about 14%-15% in 2016 and 2017 (compared with an estimated 14% for 2015), supported by the group's internal efficiency improvement program. -- Capital expenditures of around EUR50 million a year for 2016-2018. -- Dividend payments in line with the stated dividend policy of up to 70% of net income. -- ABS and factoring utilization (which is added to S&P's adjusted debt metrics) to remain steady at EUR90 million. -- No significant mergers or acquisitions. Any such debt funded activity could represent downside to S&P's forecasts. Based on these assumptions, S&P arrives at these credit measures for 2016 and 2017: -- Funds from operations (FFO) to debt of about 17%-19%. -- Debt to EBITDA of below 4x. -- FFO cash interest cover of around 5x. The positive outlook indicates at least a one-in-three likelihood that S&P could raise the ratings by one notch to 'B+' over the next 12 months. S&P could raise the ratings if Pfleiderer continues to deliver a steadily improving operational performance through increasing sales and at least maintained margins. This, combined with strong cash flow generation, could lead to credit metrics improving to such an extent that S&P thinks it is likely that the company could maintain FFO to debt of around 20%, which would be commensurate with a higher rating. A maintained adequate liquidity profile and a prudent expansion strategy would be a pre-requisite for a higher rating. S&P could change the outlook to stable if Pfleiderer's operating performance were to fall below our base case, for example due to worsening economic outlook in Pfleiderer's core markets, which would negatively impact pricing and demand for processed wood products. S&P could also change the outlook to stable if credit metrics were to decline, which could be the result of a large acquisition or excessive dividend payments, although S&P thinks such a scenario is unlikely in the coming year. =========== G R E E C E =========== GREECE: Creditors' First Bailout Review Set to Start This Week -------------------------------------------------------------- DPA reports that EU Economy Commissioner Pierre Moscovici said on Jan. 28 Greece's creditors will begin their first review of progress made under the country's new bailout this week after technical issues had caused some delays. Athens has been required to implement painful economic reforms in return for international bailouts that have prevented the country from going bankrupt, DPA relays. A successful completion of the review will pave the way for Greece to receive further bailout funding, DPA says. It has also been set as a condition to start a highly anticipated discussion on debt relief and the role of the International Monetary Fund in the latest bailout, DPA notes. According to DPA, a quick completion of the review is also needed because Greece's liquidity situation could soon become "tight" again, Klaus Regling, the head of the eurozone bailout fund, warned earlier last month. Mr. Regling noted Athens has to meet EUR4 billion (US$4.24 billion) in debt-service obligations by the end of March, DPA relates. Technical teams on the ground in Athens are making progress on "difficult issues related to fiscal targets and pensions," Mr. Moscovici, as cited by DPA, said on Jan. 28, adding that senior officials will return to the Greek capital in the coming days, "to start the talks early this week." ===================== N E T H E R L A N D S ===================== LEOPARD CLO V: Moody's Affirms Caa3 Rating on Class F Notes ----------------------------------------------------------- Moody's Investors Service announced that it has taken rating actions on these classes of notes issued by Leopard CLO V. B.V.: EUR168 mil. (current outstanding balance of EUR12.1M) Class A Senior Secured Floating Rate Notes due 2023, Affirmed Aaa (sf); previously on Aug. 26, 2015, Affirmed Aaa (sf) EUR28 mil. Class B Secured Deferrable Floating Rate Notes due 2023, Affirmed Aaa (sf); previously on Aug. 26, 2015, Upgraded to Aaa (sf) EUR13 mil. Class C-1 Secured Deferrable Floating Rate Notes due 2023, Upgraded to Aaa (sf); previously on Aug. 26, 2015, Upgraded to Aa1 (sf) EUR7 mil. Class C-2 Secured Deferrable Fixed Rate Notes due 2023, Upgraded to Aaa (sf); previously on Aug. 26, 2015, Upgraded to Aa1 (sf) EUR26 mil. Class D Secured Deferrable Floating Rate Notes due 2023, Upgraded to Baa1 (sf); previously on Aug. 26, 2015, Upgraded to Baa3 (sf) EUR13 mil. Class E-1 Secured Deferrable Floating Rate Notes due 2023, Affirmed B3 (sf); previously on Aug. 26, 2015, Affirmed B3 (sf) EUR3 mil. Class E-2 Secured Deferrable Fixed Rate Notes due 2023, Affirmed B3 (sf); previously on Aug. 26, 2015, Affirmed B3 (sf) EUR7 mil. (current outstanding balance of EUR7.7 mil.) Class F Secured Deferrable Floating Rate Notes due 2023, Affirmed Caa3 (sf); previously on Aug. 26, 2015, Affirmed Caa3 (sf) EUR100 mil. (current outstanding balance of EUR4.7 mil.) Multicurrency Senior Secured Floating Rate Variable Funding Notes due 2023, Affirmed Aaa (sf); previously on Aug. 26, 2015, Affirmed Aaa (sf) Leopard CLO V B.V., issued in May 2007, is a multi-currency Collateralised Loan Obligation ("CLO") backed by a portfolio of mostly high yield senior secured European loans managed by M&G Investment Management Limited. This transaction passed its reinvestment period in July 2013. The majority of the transaction's assets and rated liabilities are denominated in EUR; GBP assets are naturally hedged by GBP drawings under Variable Funding Notes. RATINGS RATIONALE The upgrades to the ratings are primarily the result of the substantial deleveraging that has occurred over the last two payment dates in July 2015 and January 2016. Over the last two payment dates the Multicurrency Variable Funding Notes (VFN) and the Class A Notes have amortized approximately by EUR19.5 million and 47.1 million, respectively. As a result the over-collateralization (OC) ratio have increased. As per the trustee report dated December 2015, the Class A (Senior), Class B, Class C, Class D, Class E and Class F OC ratios are reported at 381.7%, 207.1%, 156.1%, 118.2%, 102.9% and 96.8% compared to July 2015 levels of 209.2%, 157.1%, 133.3%, 111.4%, 101.2% and 97.0%, respectively. Despite the OC increase the Class E and Class F are still failing their over- collateralization tests. Moody's notes that the January 2016 principal payments are not reflected in the OC ratios reported. The key model inputs Moody's uses in its analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on its published methodology and could differ from the trustee's reported numbers. In its base case, Moody's analyzed the underlying collateral pool as having a performing par and principal proceeds balance of EUR93.7 million and GBP15.6 million, defaulted par of EUR1.7 million, a weighted average default probability of 21.3% (consistent with a WARF of 2,841), a weighted average recovery rate upon default of 46.3% for a Aaa liability target rating, a diversity score of 21 and a weighted average spread of 3.9%. The default probability derives from the credit quality of the collateral pool and Moody's expectation of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into its cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analyzing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in December 2015. Factors that would lead to an upgrade or downgrade of the ratings: In addition to the base-case analysis, Moody's conducted sensitivity analyses on the key parameters for the rated notes, for which it assumed a lower weighted average recovery rate for the portfolio. Moody's ran a model in which it reduced the weighted average recovery rate by 5%; the model generated outputs that were unchanged for the VFN, Class A, Class B, class C, Class D and Class F and within one notch of the base-case results for Class E. This transaction is subject to a high level of macroeconomic uncertainty, which could negatively affect the ratings on the note, in light of uncertainty about credit conditions in the general economy. CLO notes' performance may also be impacted either positively or negatively by 1) the manager's investment strategy and behavior and 2) divergence in the legal interpretation of CDO documentation by different transactional parties because of embedded ambiguities. Additional uncertainty about performance is due to: Portfolio amortization: The main source of uncertainty in this transaction is the pace of amortization of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortization could accelerate as a consequence of high loan prepayment levels or collateral sales the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortization would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. Around 6.4% of the collateral pool consists of debt obligations whose credit quality Moody's has assessed by using credit estimates. As part of its base case, Moody's has stressed large concentrations of single obligors bearing a credit estimate as described in "Updated Approach to the Usage of Credit Estimates in Rated Transactions", published in October 2009 and available at: http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_120461 Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over- collateralization levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Moody's analyzed defaulted recoveries assuming the lower of the market price or the recovery rate to account for potential volatility in market prices. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. Long-dated assets: The presence of assets that mature beyond the CLO's legal maturity date exposes the deal to liquidation risk on those assets. Moody's assumes that, at transaction maturity, the liquidation value of such an asset will depend on the nature of the asset as well as the extent to which the asset's maturity lags that of the liabilities. Liquidation values higher than Moody's expectations would have a positive impact on the notes' ratings. Foreign currency exposure: The deal has a significant exposure to non-EUR denominated assets. Volatility in foreign exchange rates will have a direct impact on interest and principal proceeds available to the transaction, which can affect the expected loss of rated tranches. In addition to the quantitative factors that Moody's explicitly modeled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from other Moody's analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. METINVEST BV: UK Court Okays Eurobond Repayment Moratorium ---------------------------------------------------------- Interfax-Ukraine reports that the High Court of Justice of England and Wales has sanctioned a temporary moratorium on the repayment of the eurobonds of Metinvest B.V. with a total nominal value of US$1.125 billion until May 27, 2016. On Jan. 27, the holders of the eurobonds of Metinvest approved a temporary moratorium on the repayment of the securities, Interfax-Ukraine relates. This moratorium was to come into force if approved by the High Court of Justice of England and Wales, Interfax-Ukraine notes. The proposal concerns the owners of eurobonds for US$85 million with maturity in 2016, those worth US$289.734 million with a maturity term in 2017, and US$750 million with maturity in 2018, Interfax-Ukraine discloses. According to Interfax-Ukraine, during the validity of the moratorium the company intends to achieve an agreement on the restructuring of these eurobonds, as well as pre-export financing in the amount of US$1.089 billion. Metinvest BV is Ukraine's largest steelmaker. STORM 2016-I: Fitch Assigns 'BB+sf' Rating to Class E Notes ----------------------------------------------------------- Fitch Ratings has assigned STORM 2016-I B.V.'s notes final ratings as follows: EUR405 million Class A1 floating-rate notes: 'AAAsf'; Outlook Stable EUR1,395 million Class A2 floating-rate notes: 'AAAsf'; Outlook Stable EUR37 million Class B floating-rate notes: 'AAsf'; Outlook Stable EUR29 million Class C floating-rate notes: 'A-sf'; Outlook Stable EUR29 million Class D floating-rate notes: 'BB+sf'; Outlook Stable EUR19 million Class E floating-rate notes: 'BBsf'; Outlook Stable This transaction is a true sale securitization of prime Dutch residential mortgage loans originated and serviced by Obvion N.V. Since May 2012, Obvion has been 100%-owned by Cooperatieve Rabobank U.A. (Rabobank), previously known as Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. and has an established track record as a mortgage lender and issuer of securitizations in the Netherlands. The class A notes are rated for timely payment of interest, including the step-up margin that will be accrued from the payment date falling in January 2021, and the full repayment of principal by legal final maturity. The remaining notes in the structure are rated for ultimate interest and principal payments, in accordance with the transaction documentation. Credit enhancement (CE) for the class A notes is 6% at closing, provided by the subordination of the junior notes and a non- amortizing cash reserve (1%), fully funded at closing through the class E notes. KEY RATING DRIVERS Market Average Portfolio This is a 50-month seasoned portfolio consisting of prime residential mortgage loans, with a weighted average (WA) original loan-to-market-value (OLTMV) of 88.5% and a WA debt-to-income ratio (DTI) of 28%, both of which are typical for Fitch-rated Dutch RMBS transactions and in line with previous STORM transactions. NHG Loans Within the portfolio 32.6% of the loans benefit from a Nationale Hypotheek Garantie (NHG) guarantee. Fitch received historical claims data to determine a compliance ratio assumption, which it deemed to be in line with market average. No reduction in foreclosure frequency for the NHG loans was applied, since historical data provided did not show a clear pattern of lower defaults for NHG loans. Fitch has also tested the transaction without giving any credit to the NHG-guarantee and found the ratings on the class A notes to be identical. Lower CE Over-collateralization through assets and a non-amortizing reserve of 1%, funded through the class E notes, provide CE of 6%, which is lower than the 7% typically seen in the STORM series. The transaction also contains a liquidity facility (2% of the notes, floored at 1.45%) and a margin-guaranteed total return swap, which is in line with previous Fitch-rated STORM transactions. Rabobank Main Counterparty This transaction relies strongly on the creditworthiness of Rabobank, which fulfils a number of roles. Fitch gave full credit to the structural features in place, including those mitigating construction deposit set-off and commingling risk embedded in the transaction. Robust Performance Past performance of transactions in the STORM series, as well as data received on Obvion's loan book, indicate sound historical performance in terms of low arrears and losses. RATING SENSITIVITIES Material increases in the frequency of defaults and loss severity on defaulted receivables could produce losses larger than Fitch's base case expectations, which in turn may result in negative rating actions on the notes. Fitch's analysis revealed that a 30% increase in the WA foreclosure frequency, along with a 30% decrease in the WA recovery rate, would result in a model- implied-downgrade of the class A notes to 'Asf', class B notes to 'BBBsf', class C notes to 'BBsf' and the class D and E notes to below 'Bsf' DUE DILIGENCE USAGE No third party due diligence was provided or reviewed in relation to this rating action. DATA ADEQUACY For its ratings analysis, Fitch received a data template with all fields fully completed. Fitch reviewed the results of a third party assessment conducted on the asset portfolio information. Each year, an internationally recognized accounting firm conducts the report on a single eligible mortgage pool, which will be used for all transactions in the respective year. The report indicated no adverse findings material to the rating analysis. Overall and together with the assumptions referred to above, Fitch's assessment of the asset pool information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. Sources of Information: The information below was used in the analysis: -- Loan-by-loan data tape in Fitch's ResiEMEA template provided by Obvion as at 1 January 2016 -- Transaction reporting provided by Obvion as at end-August 2015 -- Static vintage defaults, loss figures and dynamic performance data on Obvion's mortgage loan book -- Investor reports for the existing STORM transactions -- A portfolio of 3,331 foreclosed properties (after correcting for missing data), representing all loans foreclosed since 2002, provided by Obvion -- The House Price Index from the CBS (Statistics Netherlands) REPRESENTATIONS AND WARRANTIES A comparison of the transaction's Representations, Warranties & Enforcement Mechanisms to those typical for that asset class is available by accessing the appendix that accompanies the new issue report. ZIGGO GROUP: S&P Affirms 'BB-' Long-Term CCR, Outlook Stable ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit rating on Netherlands-based Ziggo Group Holding B.V. The outlook is stable. S&P also affirmed its 'BB-' issue rating on Ziggo's senior secured debt. The recovery rating remains unchanged at '3', indicating S&P's expectation of meaningful recovery, in the higher half of the 50%-70%, range in the event of a payment default. Additionally, S&P affirmed the 'B' issue rating on Ziggo's exchanged senior notes. The recovery rating on these notes remains unchanged at '6', indicating S&P's expectation of negligible recovery (0-10%) in the event of a payment default. The affirmation reflects that, despite the downward revision of S&P's assessment of Ziggo's stand-alone credit profile (SACP) to 'b+' from 'bb-' on weaker credit ratios, S&P continues to equalize its ratings on Ziggo with those on its parent, Liberty Global plc (LGP), given our view of its core status within the group. "Our view of Ziggo's financial risk profile has weakened, due to pressure on revenues and margins from intense competition in the Dutch market in 2015, and we expect this trend will continue in 2016. Aggressive offers and pricing by incumbent player Koninklijke KPN N.V. have contributed to a more competitive market and increased churn rates for Ziggo. The company lost over 150,000 revenue-generating units in the first nine months of 2015 (excluding mobile), and, while slowing, we believe competition will keep churn rates elevated and reduce pricing power, constraining revenues and margins. We expect that margin pressure will be somewhat mitigated in 2016 by labor, marketing, and procurement synergies related to the 2015 merger of the former Ziggo N.V. with UPC Nederland, once integration costs begin to decline. We expect Standard & Poor's-adjusted debt to EBITDA will rise to 5.2x-5.3x and free cash flow to debt of 3%-4% for the next two years. Our assessment also reflects our expectation of operating profitability that, despite headwinds, remains above average for the industry. We forecast free cash generation after intercompany interest payments of about EUR150 million in 2016 and 2017. However, we believe Ziggo will likely upstream a large chunk of that, within the company's leverage guideline," S&P said. S&P's view of Ziggo's financial policy no longer has a negative impact on the company's credit profile. Although S&P expects LGP will maintain an aggressive distribution policy and upstream most excess cash from Ziggo, S&P thinks such policies are unlikely to significantly weaken the company's financial profile from S&P's revised assessment. Since S&P views Ziggo as a core entity within the LGP group because of its strong operational, financial, and strategic links, S&P's 'BB-' rating on Ziggo is equalized with the rating on LGP, as per S&P's group rating methodology. The stable outlook on Ziggo mirrors S&P's stable outlook on LGP, because S&P considers Ziggo to be a core subsidiary of LGP, as per S&P's group rating methodology. S&P currently does not expect to raise its assessment of Ziggo's SACP, owing to strong market competition and LGP's aggressive debt policy for Ziggo. S&P could, however, revise upward its assessment if competitive conditions improved leading to a marked rise in EBITDA, or a significant debt reduction due to a change in the group's financial policy. For example, if S&P expected Standard & Poor's-adjusted debt to EBITDA sustainably below 5.0x, S&P could revise upward its assessment of Ziggo's SACP. However, the issuer credit rating would remain at 'BB-' unless S&P upgraded LGP. S&P is unlikely to revise downward its assessment of Ziggo's SACP, but could consider it if operating performance materially deteriorated from current levels such that market conditions and Ziggo's competitive profile weakened S&P's view of the company's business risk profile. S&P could also lower the SACP if LGP adopted a more aggressive financial policy for Ziggo than S&P currently expects. For example, if an increase in acquisition activity or leveraged shareholder returns caused Ziggo's Standard & Poor's-adjusted debt to EBITDA to remain sustainably above 6.0x, it would be negative for the SACP. However, the issuer credit rating would remain at 'BB-' unless S&P downgraded LGP or S&P's assessment of Ziggo's strategic importance to the group eroded. ============= R O M A N I A ============= ROMANIAN AUTHORITY: Goes Bankrupt, Administrator Appointed ---------------------------------------------------------- Romania Insider, citing a decision of the Mehedinti Court, reports that the Romanian Authority for Nuclear Activities (RAAN) went bankrupt. The court appointed Euro Insol SPRL the company's temporary judicial administrator, Romania Insider relays, citing local Mediafax. Euro Insol is an insolvency house controlled by Remus Borza, Romania Insider discloses. According to Romania Insider, Mr. Borza said that he might refuse the mandate because his insolvency house doesn't take on bankrupt companies that can't be saved. RAAN produced heavy water needed for the electricity production in nuclear reactors of the Cernavoda nuclear power plant, as well as thermal energy to heat the residents of Drobeta-Turnu Severin city, according to Romania Insider. =========== R U S S I A =========== ANTONOV: Denies Liquidation Reports ----------------------------------- Aircargo News reports that Antonov has denied reports that the company has been liquidated, pointing out that the manufacturer has actually been transferred to a different state concern. Several media reports have carried stories on the demise on the iconic aircraft manufacturer over the last few days, according to Aircargo News. In response, the company said it had transferred the management of Antonov State Company, Kharkiv State Aircraft Manufacturing Company (KSAMC) and State enterprise Plant 410 of Civil Aviation from Antonov State Concern to UKROBORONPROM State Concern, the report notes. In line with the transfer, it had then liquidated Antonov State Concern, but Antonov State Company would continue to perform the full cycle of the aircraft creation; from pre-project scientific research to construction, tests, and certification and serial production to after sale maintenance, the report discloses. ========= S P A I N ========= ABENGOA SA: To Mothball Solar-Thermal Power Plant in Chile ---------------------------------------------------------- Javiera Quiroga and Macarena Munoz at Bloomberg News report that Abengoa SA, which is on the verge of insolvency, and EIG Global Energy Partners LLP are said to be mothballing what would have been the first solar-thermal power plant in Latin America. According to Bloomberg, three people with knowledge of the more than $1 billion project said APW-1, owned jointly by Spain's Abengoa and private equity firm EIG, fired 1,500 workers at the Atacama 1 project in northern Chile. The last workers were scheduled to leave the plant this week, one of the people, as cited by Bloomberg, said, abandoning the 200- meter-high tower and hundreds of reflecting mirrors to the sands of Chile's northern desert. Two of the people said the owners plan to review the project and may resume work later this year, Bloomberg relates. Pedro Maureira, who supplied drills to a contractor at the site, said his company had already withdrawn equipment after payments dried up, Bloomberg notes. Abengoa SA is a Spanish renewable-energy company. * * * As reported by the Troubled Company Reporter-Europe on Dec. 21, 2015, Standard & Poor's Ratings Services lowered to 'SD' (selective default) from 'CCC-' its long-term corporate credit rating on Spanish engineering and construction company Abengoa S.A. S&P also lowered the short-term corporate credit rating on Abengoa to 'SD' from 'C'. S&P said the downgrade reflects Abengoa's failure to pay scheduled maturities under its EUR750 million Euro-Commercial Paper Program. AYT GOYA IV: DBRS Confirms B(sf) Rating on Class B Notes -------------------------------------------------------- DBRS Ratings Limited (DBRS) has taken the following rating actions on the Notes issued by AyT Goya Hipotecario IV, Fondo de Titulizacion de Activos (the Issuer): -- Class A Notes rating is confirmed at A (high) (sf) -- Class B Notes rating is confirmed at B (sf) The rating actions are based on the following analytical considerations as described more fully below: -- Portfolio performance, in terms of delinquencies and defaults, as of September 2015. -- Portfolio default rate, loss given default and expected loss assumptions for the remaining collateral pool. -- Current available credit enhancement to cover the expected losses at the A (high) (sf) and B (sf) rating levels. AyT Goya Hipotecario IV, Fondo de Titulizacion de Activos closed in April 2011 and is a securitization of Spanish prime residential mortgages originated and serviced by Barclays Bank S.A. On 14 May 2015, CaixaBank S.A. acquired Barclays Bank S.A. and assumed all of the functions in this transaction. The portfolio is performing in line with DBRS's expectations. As of the September 2015 payment date, the cumulative gross default (loans more than 18 months in arrears) as a percentage of collateral balance at transaction closing was at 1.15%. The 90+ delinquency ratio as a percentage of the outstanding collateral portfolio balance is low at 0.63%. Credit enhancement to the Class A Notes is provided by subordination of the Class B Notes and the Cash Reserve Fund. Credit enhancement to the Class B Notes is solely provided by the Cash Reserve Fund. Current credit enhancements as a percentage of the performing balance of the portfolio for the Class A and Class B Notes is 32.41% and 6.13%, respectively. As of the September 2015 payment date, the Cash Reserve Fund target was EUR 65 million, representing 7.29% of the total outstanding balance of the Class A and Class B Notes. The Cash Reserve Fund balance was EUR55.18 million, EUR9.8 million below the target. CaixaBank S.A. (A (low)/R-1 (low)) is the Treasury Account Bank for the transaction. Its rating complies with the Minimum Institution Rating requirement given the rating assigned to the Class A Notes, as described in DBRS's "Legal Criteria for European Structured Finance Transactions" methodology. The transaction benefits from a basis swap entered into with Barclays Bank PLC, Sucursal en Espana. Its DBRS private rating meets the rating requirement given the rating assigned to the Class A Notes. ===================== S W I T Z E R L A N D ===================== SPUTNIK ENGINEERING: Schaffner EMV to Dispute CHF2.9MM Claims ------------------------------------------------------------- The Schaffner Group was informed on Jan. 29 that the bankruptcy estate of Sputnik Engineering AG, in liquidation, has filed an action against Schaffner EMV AG in the Commercial Court in Berne in connection with alleged product deficiencies. The amount claimed by Sputnik Engineering AG in liquidation is CHF2.9 million for the time being. Schaffner EMV AG contests the action filed by the bankruptcy estate of Sputnik Engineering in liquidation and will respond in the context of the legal proceedings. Sputnik Engineering AG is a Swiss company specializing in the development, production, distribution, and maintenance of grid-connected photovoltaic inverters. Sputnik Engineering filed for insolvency in November 2014. ============= U K R A I N E ============= GOLDEN DERRICK: Donetsk Court Commences Liquidation Procedure ------------------------------------------------------------- Interfax Ukraine reports that the business court of Donetsk region on Jan. 27 decided to liquidate PJSC Golden Derrick. According to Interfax Ukraine, the liquidation procedure will last for 12 months. The company's net asset value is UAH197.353 million, its liabilities total UAH95.232 million, equity capital is UAH10.134 million (information from the audited annual report). In 2015, the higher administrative court of Ukraine has upheld the ruling of a court of lower instance that Golden Derrick LLC was deprived of 19 permits to produce oil and gas, Interfax Ukraine relates. PJSC Golden Derrick is a drilling company. =========================== U N I T E D K I N G D O M =========================== DREAMWATER LOUNGE: Gets Noise Abatement Notice Amid Fin'l Woes -------------------------------------------------------------- Warrington Guardian reports that a struggling Stockton Heath wine bar and health spa was ordered to 'reduce noise levels' before going into liquidation earlier this month. Dreamwater Lounge, on Grappenhall Road, announced it would no longer be operating around two weeks ago, according to Warrington Guardian. And the Warrington Guardian can reveal that apart from financial struggles, the business was the subject of a noise abatement notice from Warrington Borough Council last year, the report notes. "We received complaints about noise from three local residents last spring. These were found to be fully justified and a noise abatement notice was served to protect the residents from excessive noise," the report quoted a council spokesman as saying. "We are committed to supporting responsible businesses to comply with the law and we were able to secure an action plan to reduce noise levels. The premises were aware of their responsibilities -- we have had no further involvement in this matter since August 2015," the council spokesman added. Since the lounge went into liquidation concerned residents have enquired over whether they will still be able to use Group On vouchers, having purchased them before the future of the company was revealed, the report relays. And there has been speculation over whether staff were receiving their wages, the report notes. But a former employee, who wishes to remain anonymous, said all of the workers have been paid correctly, the report discloses. The report notes that the former employee added: "It was a venture and I did have my concerns -- it failed because of the amount of work which needed to be carried out, the company could not recover from that. "People have no idea what has gone into it. We were also under great strains from the council about noise levels. The staff have been paid fully but the owner is now at risk of losing everything," the report quoted the former employee as saying. The source also said the owner did not want to continue operating without a 'guarantee' that staff would be paid, the report notes. =============== X X X X X X X X =============== * S&P Raises Ratings on 17 European Companies' Debt Instruments --------------------------------------------------------------- Standard & Poor's Ratings Services said that it is revising upward the recovery ratings of 17 European companies' debt instruments. As a result, S&P is also raising the issue ratings on these instruments by one or two notches. At the same time, S&P is affirming the existing recovery ratings on 21 debt instruments. This follows the publication of the list of issuers that were placed under criteria observation (UCO) on Jan. 20, 2016. These rating changes are solely due to the changes in the ranking of the relevant insolvency regimes (France, Spain, and South Africa). The ratings are no longer under criteria observation. RATINGS LIST Upgraded To From NH Hotel Group S.A. Senior Secured B+ B Recovery Rating 1 2H Europcar Groupe S.A. Senior Secured BB BB- Recovery Rating 1 2H Picard Groupe S.A.S. Senior Secured BB- B+ Recovery Rating 2H 3H Financiere Quick S.A.S. Super Senior Secured BB- B Recovery Rating 1+ 2H LuxGeo SARLSuper Senior Secured BB- B+ Recovery Rating 1 2H BUT S.A.S. Super Senior Secured BB B+ Recovery Rating 1+ 2H 3AB Optique Developpement Super Senior Secured BB B+ Recovery Rating 1+ 2H Gestamp Funding Luxemburg SA Senior Secured BB+ BB Recovery Rating 2H 3H Magnolia (BC) S.A. (Maisons du Monde) Super Senior Secured BB B+ Recovery Rating 1+ 2H Autodis Super Senior Secured BB- B+ Recovery Rating 1 2H Novafives Super Senior Secured BB BB- Recovery Rating 1 2H THOM Europe S.A.S. Super Senior Secured BB- B+ Recovery Rating 1 2H Dry Mix Solutions Investissements S.A.S. Super Senior Secured BB- B+ Recovery Rating 1 2H IKKS Group SAS Super Senior Secured BB B+ Recovery Rating 1+ 2H CasaVita Super Senior Secured BB- B+ Recovery Rating 1 2H Ephios Bondco PLC Super Senior Secured BB+ BB- Recovery Rating 1+ 2H FL Investco Senior Secured BB BB- Recovery Rating 1 2H Affirmed Europcar Groupe S.A. Secured Subordinated B- Recovery Rating 6 EC Finance PLC Secured Subordinated B+ Recovery Rating 3L Picard Bondco S.A. Senior Unsecured B- Recovery Rating 6 Picard PIKco. S.A. Senior Unsecured B- Recovery Rating 6 Financiere Quick S.A.S. Senior Secured B- Recovery Rating 3H Financiere Quick S.A.S. Junior Subordinated CCC Recovery Rating 6 Geo Debt Finance S.C.A. Senior Unsecured B Recovery Rating 4L Geo Travel Finance SCA Luxembourg Senior Unsecured CCC+ Recovery Rating 6 BUT S.A.S. Senior Secured B Recovery Rating 3L 3AB Optique Developpement Senior Secured B Recovery Rating 3L Lion / Seneca France 2 SAS Subordinated CCC+ Recovery Rating 6 Magnolia (BC) S.A. (Maisons du Monde) Senior Secured B Recovery Rating 3H Autodis PIK Toggle notes B Recovery Rating 4L Dakar Finance S.A. (part of Autodis) PIK Toggle notes CCC+ Recovery Rating 6 Novafives Senior Secured B+ Recovery Rating 4L THOM Europe S.A.S. Senior Secured B Recovery Rating 4H Dry Mix Solutions Investissements S.A.S. Senior Secured B Recovery Rating 4L HoldIKKS SAS Senior Secured B Recovery Rating 4H Home Vi Senior Secured B Recovery Rating 4L Ephios Bondco PLC Senior Secured B+ Recovery Rating 4H Ephios Holdco II Plc Senior Secured B- Recovery Rating 6 ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than US$3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/booksto order any title today. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 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 * * *