TCREUR_Public/160203.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

         Wednesday, February 3, 2016, Vol. 17, No. 023


                            Headlines


D E N M A R K

FONA: At Risk of Bankruptcy Due to Stiff Competition


F R A N C E

WFS GLOBAL: Moody's Assigns (P)Caa1 Rating to EUR150MMM Sr. Notes


H U N G A R Y

* HUNGARY: Number of Mandatory Liquidations Down 44% in 2015


I R E L A N D

KENMARE RESOURCES: Defaults on Debts, Bank Talks Ongoing


I T A L Y

MANUTENCOOP FACILITY: Moody's Lowers CFR to B3, Outlook Stable
ONORATO ARMATORI: Moody's Assigns (P)Ba3 CFR, Outlook Stable
ONORATO ARMATORI: S&P Assigns Prelim. B+ CCR, Outlook Developing


K A Z A K H S T A N

EURASIAN RESOURCES: S&P Puts 'B-/B' CCR on CreditWatch Negative


N E T H E R L A N D S

HOLLAND HOMES: Fitch Affirms 'BBsf' Rating on Class B Notes


R U S S I A

CB INTERCOMMERZ: S&P Lowers Counterparty Credit Ratings to 'R/R'
HEPHAESTUS INSURANCE: Placed Under Provisional Administration
KOMMERCHESKY MEZHREGIONALNY: Under Provisional Administration
RUSSIA: Mulls Privatization of Seven State Companies
ZSG INSURANCE: Placed Under Provisional Administration


U N I T E D   K I N G D O M

GULF KEYSTONE: Prepares for Debt Restructuring After Cash Falls
LEHMAN BROTHERS UK: February 15 Claims Filing Deadline Set
TURBO FINANCE 6: Moody's Assigns (P)Ba2 Rating to Class C Notes
* UK: Number of Administrations in Retail Sector Down 19% in 2015


U Z B E K I S T A N

AGROBANK: Moody's Raises Long-Term Currency Deposit Ratings to B3


X X X X X X X X

* S&P Takes Various Rating Actions on 17 European CDO Tranches


                            *********



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D E N M A R K
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FONA: At Risk of Bankruptcy Due to Stiff Competition
----------------------------------------------------
Online Post, citing Berlingske, reports that Fona has announced it
is facing potential bankruptcy.

According to Online Post, a long price war with competitors has
taken its toll, and Fona finds itself in a state of insolvency and
unable to pay its creditors.

In an official statement, the company has ensured customers won't
be affected and its stores, including the webshop, will remain
open, Online Post relates.

Fona, Online Post says, is currently looking for a new owner or
partner prepared to invest much-needed capital into the chain,
which operates 56 stores across Denmark.

Over the last two financial years, Fona has chalked up losses that
run into tens of millions of kroner, Online Post discloses.

Fona is a Danish electronics chain.



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F R A N C E
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WFS GLOBAL: Moody's Assigns (P)Caa1 Rating to EUR150MMM Sr. Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned a (P)Caa1 rating to
proposed EUR150 million senior notes due 2022 to be issued by WFS
Global Holding S.A.S., the top entity of the WFS borrowing group.
Concurrently, Moody's affirmed the existing WFS's corporate family
rating (CFR) of B2, Probability of Default (PDR) of B2-PD and a B2
rating of WFS's EUR225 million senior secured notes due 2022.  The
outlook on all ratings is stable.

WFS is in the process of raising EUR240 million new debt split
between EUR150 million new senior notes and EUR90 mil. tap
issuance to the existing senior secured notes.  The debt proceeds,
together with equity contribution of USD90 million, will be used
to support the acquisition of Consolidated Aviation Services, a
leading US cargo handler, announced on Jan. 11, 2016.

Moody's issues provisional ratings in advance of the final sale of
securities and these ratings reflect Moody's preliminary credit
opinion regarding the transaction only.  Upon closing of the
transaction and a conclusive review of the final documentation,
Moody's will endeavor to assign definitive ratings to the notes. A
definitive rating may differ from a provisional rating.

RATINGS RATIONALE

WFS's B2 CFR reflects: (i) the exposure of WFS's core cargo
business to economic and international trade cyclicality; (ii)
WFS's airline customer base leading to price pressure and
consolidation risk; and (iii) geographic concentration in France,
although reduced to c. 30% of total revenue proforma for the
proposed CAS contribution.

The B2 CFR also reflects: (i) strong position in cargo business as
the number one independent global player complemented by its
trucking network across Europe; (ii) growth and synergies
opportunities offered by the proposed CAS acquisition; and (iii)
relatively stable client base offsetting some customer
concentration.

The proposed acquisition of CAS will strengthen WFS's business
profile by consolidating its leading independent cargo handler
status, both worldwide and in the US.  It will also diversify its
revenue and income stream away from Europe into the US market.
The business combination is also expected to generate substantial
SG&A and operational costs synergies arising from duplicative
overhead and warehouse capacity.

WFS has demonstrated strong performance during financial year
ending December 2015 (FY15) due to growth in new contract wins and
within its existing business.  YTD September 2015 sales increased
by 19% year-on-year, out of which 5% was organic growth.  WFS
Ground Italy, launched in June 2015 through a partnership
agreement between WFS Group and ATA Italia, has contributed EUR12
million to revenue.

Moody's expects the growth to continue, supported by ground
handling business won in five airports in Spain in June 2015, full
year contribution from Ortibal and synergies from an acquisition
of a 51% stake of Fraport, consolidated from Nov. 1, 2015.

Moody's adjusted gross leverage as of Sept. 30, 2015, is 4.1x,
based on WFS standalone basis, full-year contribution of Orbital
(100% consolidation).  EBITDA excludes some one-off costs which
are considered non-recurring.  Proforma for CAS acquisition,
Moody's adjusted leverage is expected to stay at around 4.1x in
2015E (before synergies).  Thereafter Moody's expects to see a
gradual de-leveraging through EBITDA growth, in part due to
further synergies roll-out.

Cash flow generation is expected to weaken in 2016 due to
substantial restructuring costs, both on WFS standalone basis and
related to the CAS integration.  The rating incorporates an
expectation that the company would maintain an adequate liquidity
cushion, including access to EUR85 million of revolving credit
facility (RCF), expected to be increased from current EUR50
million as part of CAS transaction.  Around EUR30 million of RCF
is expected to be utilized for letters of credit.  The springing
net leverage financial covenant under the revolving credit
facility is expected to remain in compliance.

The existing senior secured notes share security (comprising of
share pledges in subsidiaries; intragroup receivables due to
subsidiaries; and cash) and guarantees with the RCF however rank
behind the RCF due to contractual subordination via the
intercreditor agreement in an enforcement.  The proposed senior
notes are guaranteed by the same companies as the senior secured
notes but on senior subordinated basis.  The (P)Caa1 rating on the
senior notes, two notches below CFR and the rating of senior
secured notes, reflects their subordinated status.

The ratings also incorporate Moody's understanding that the
shareholder funding into the restricted group, including that for
CAS acquisition, is wholly via common equity.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's expectation of a gradual
deleveraging of the business based on maintaining or growing its
market share in a reasonably stable market environment and
successful integration of CAS.  The outlook does not take into
account any further material debt funded acquisition nor any
potential shareholder friendly actions, including a repayment of
the vendor loan outside of the restricted group.

WHAT COULD CHANGE THE RATING UP/DOWN

Moody's could upgrade the ratings if WFS's credit metrics were to
improve as a result of a stronger-than-expected operational
performance, leading to (i) debt/EBITDA ratio sustainably below
3.5x, (ii) EBITA / interest above 1.5x and (iii) continuing
positive free cash flow generation.

Moody's could downgrade the ratings if: (i) Moody's adjusted
debt/EBITDA ratio (on a proforma CAS basis) increases above 4.5x;
(ii) EBITA/interest ratio falls materially below 1.5x or (iii)
liquidity profile or covenant headroom weakens.

The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014.

WFS is a global aviation services company principally focused on
cargo handling and ground handling.  As of Sept. 30, 2015, WFS
operated at 136 airports in 20 countries (principally in Europe)
and served more than 198 airlines and 10 airport customers
worldwide.  The company generated EUR597 million net sales (under
IFRS) in FY 2014.  The company was acquired by Platinum Equity
from LBO France on Oct. 1, 2015.



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H U N G A R Y
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* HUNGARY: Number of Mandatory Liquidations Down 44% in 2015
------------------------------------------------------------
MTI-Econews, citing Bisnode, which compiles information on
companies, reports that the number of mandatory liquidations
launched in Hungary fell 44% to around 10,000 last year.

According to MTI-Econews, Bisnode said the number was even lower
than 2008, in the period before the global economic and financial
crisis, and it was less than half the 23,000 mandatory
liquidations launched in 2012.

The number of companies struck from the company registry fell 27%
to just over 31,000 last year, MTI-Econews discloses.

The number of voluntary liquidations reached almost 8,000 last
year, slightly under the number in 2014, MTI-Econews notes.



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I R E L A N D
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KENMARE RESOURCES: Defaults on Debts, Bank Talks Ongoing
--------------------------------------------------------
Charlie Taylor at The Irish Times reports that Kenmare Resources
has defaulted on its debts after failing to reach agreement with
lenders on a new deleveraging plan by an agreed deadline of
Jan. 31.

The explorer however said negotiations with banks on a deal are
ongoing, The Irish Times relates.

At the end of December, bank loans amounted to US$341.9 million
and cash and cash equivalents were US$14.3 million, The Irish
Times discloses.  Lenders agreed to defer payment of US$2.3
million in fees last April, The Irish Times relays.

According to The Irish Times, in a statement issued on Feb. 1,
Kenmare said it continues to monitor and manage its liquidity
positions and currently retains the support of its lenders.

"Although there can be no certainty that these matters will be
agreed or that the deleveraging plan can be implemented, the Board
of Kenmare looks forward to progressing this plan and the related
capital raising, subject to the support and co-operation of
lenders and key shareholders, and with the indicated support of
SGRF," The Irish Times quotes the company as saying.

"Power interruptions and instability have been the key bottleneck
to production at the Moma Mine in recent years and acutely felt in
the first quarter of 2015, when flooding resulting in a prolonged
outage.  However, the investment by EdM to enhance the
transmission infrastructure has resulted in a step change in the
quality and consistency of our power supply since coming on line
in late December," managing director Michael Carvill, as cited by
The Irish Times, said.

"Prices of ilmenite, our major product, have remained under
pressure in the fourth quarter of 2015.  However, the recent
closures of titanomagnetite mines in Russia and China and the
reduction of feedstock inventories at Chinese ports are
encouraging."

Kenmare Resources is an exploration company based in Dublin.



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I T A L Y
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MANUTENCOOP FACILITY: Moody's Lowers CFR to B3, Outlook Stable
--------------------------------------------------------------
Moody's Investors Service has downgraded Manutencoop Facility
Management S.p.A.'s corporate family rating to B3 from B2 and
probability of default rating (PDR) to B3-PD from B2-PD.
Concurrently, the rating agency has downgraded to B3 from B2 the
instrument rating on the senior secured notes issued by
Manutencoop Facility Management S.p.A.  The outlook on the ratings
is stable.

RATINGS RATIONALE

"The downgrade has been triggered by the announcement of the
Italian Competition Authority (ICA) to levy a EUR48.5 million fine
against Manutencoop Facility Management S.p.A. and the company's
potential resulting tight liquidity profile," says Pieter Rommens,
Moody's lead analyst for Manutencoop.

Manutencoop's B3 CFR reflects the company's (1) limited access to
committed liquidity facilities; (2) sole exposure to the Italian
economy; (3) strong reliance on the Italian public sector and
Italian public authorities' payment discipline; (4) potential
negative reputational impact from the ICA verdict; (5) additional
potential credit negative effects from the Brindisi and Milan Expo
2015 investigations; and (6) expected Moody's-adjusted gross
leverage increasing towards 5.0x by the end of FY2016 driven by
debt funded liquidity requirements.

However, the rating also reflects the company's (1) leading
position in the fragmented Italian facilities management sector;
(2) relative size compared to other local players, manifesting
itself in a dense regional network and the benefits of economies
of scale; (3) sizeable order book with approximately 70% of
expected FY2016 revenues already contracted and only one of the
top ten contracts up for renewal before 2017; (4) improved net
working operational capital position as a result of the Italian
government paying overdue receivables of EUR 140 million in 2013
and 2014.

On Jan. 20, 2016, the ICA has announced it has found 4 companies
guilty of the infringement of competition rules in the tender
arranged by Consip for the cleaning services of school buildings.
Manutencoop announced it will appeal (of first degree at Regional
Administrative Tribunal) (1) the merits of the decision, and (2)
request the suspension of the obligation to pay the fine.  The
company expects the appeal process on the merits (1) to take 12-18
months (including all possible levels of appeal), while the fee
suspension appeal (2) could take up to 6 months.

In addition, the company informed investors of a performance bond
contract of EUR24.5 million between Manutencoop and Consip.  The
performance bond can be triggered by the ICA decision (at the
discretion of Consip) and therefore could become payable.  In
practice, Manutencoop management reasonably expects Consip to
await the final outcome of the appeal process before claiming
eventually under the bond.  Until further notice, Manutencoop
continues to service the Consip scuole contract.  The contract was
won in late 2013, worth EUR174 million over a four year period
between 2014-2017.

Although the timing and the requirement of the payment of fine and
performance bond is unknown today and the company has recently
shown improvements in working capital, Moody's considers the
current liquidity position as very tight.

This is the result of (1) the potential EUR48.5 million ICA fine
and EUR24.5 million performance bond payments due if Manutencoop's
appeals are overruled and (2) no additional liquidity headroom as
the EUR10 million committed bank facility is fully drawn and the
company's EUR 30 million RCF was voluntarily cancelled in July
2014.  As of September 2015, the company reports a net cash
position of EUR 32 million, based on EUR 55 million of cash on
balance sheet balanced by approximately EUR23 million drawings
under EUR 52 million uncommitted short term bank facilities
(invoice advancing and overdraft facilities) and its fully drawn
EUR10 million committed bank debt facility.  In addition, the
company has EUR 50 million uncommitted factoring facility
(undrawn).

Rating Outlook

The stable outlook reflects Moody's view that Manutencoop will
manage its liquidity position through drawings under its
uncommitted short term debt facilities and factoring lines.  In
addition, we expect the company to counter the accelerating
pressure on revenue and margin decline by implementing its cost
reduction programme, while defending its leading position in the
Italian market and generate modest (albeit still positive) free
cash flow.

What Could Change the Rating -- UP

Positive pressure on the ratings could materialise if Manutencoop
sustainably improves its liquidity position through signing
additional committed liquidity facilities and operational cash
flow.  This includes a positive final outcome of the ICA appeal.
Quantitatively, positive pressure could materialise if the company
(1) maintains its current operating performance in relation to
EBITDA margins; (2) generates sustained positive free cash flow;
and (3) maintains leverage profile such that its Moody's-adjusted
debt/EBITDA ratio stays below 5.0x.

What Could Change the Rating -- DOWN

Conversely, negative pressure could be exerted on the ratings if
Manutencoop's liquidity profile and credit metrics deteriorate as
a result of (1) weakening operational performance or loss of
material contracts; (2) additional penalty payments or significant
legal cost; or (3) an aggressive change in its financial policy.
Quantitatively, we would also consider downgrading Manutencoop's
ratings if its adjusted debt / EBITDA sustainably increases above
6x; or if the company reports negative free cash flow on a
sustained basis.

Furthermore, any negative consequences resulting from the
investigations ranging from management distraction to reputation
risk or even financial damage would create negative pressure on
the company's rating position.

The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014.


ONORATO ARMATORI: Moody's Assigns (P)Ba3 CFR, Outlook Stable
------------------------------------------------------------
Moody's Investors Service has assigned a first-time provisional
(P)Ba3 corporate family rating to Italian maritime transportation
services company Onorato Armatori S.p.A., a holding company owning
100% of Moby S.p.A. and Tirrenia-CIN. Concurrently, Moody's has
assigned a provisional (P)Ba2 rating with a loss given default
assessment of LGD3 to the issuer's proposed EUR300 million worth
of senior secured notes due 2023.  The outlook on the ratings is
stable.  This is the first time that Moody's has assigned ratings
to Onorato Armatori S.p.A.

"The (P)Ba3 CFR reflects the issuer's well established market
positioning in the Mediterranean ferry and cargo markets, coupled
with its good revenue visibility and positive free cash flow
generation," says Guillaume Leglise, Moody's lead analyst for
Onorato Armatori.  "Nevertheless, the rating also factors in the
company's high reliance on the Italian economy as well as its
inherent business seasonality and exposure to fuel price
volatility, the latter risk being mitigated by the company's
hedging policy."

The proceeds of the refinancing transaction will be used to (1)
refinance Moby's and Tirrenia-CIN's existing debts, (2) refinance
the issuer's shareholder existing debt in relation to the recent
acquisition of the remaining 60% of Tirrenia-CIN and the
acquisition of the remaining 32% of Moby that it did not already
own, and (3) pay fees and expenses incurred in connection with the
refinancing transaction.

The ratings have been assigned on the basis of Moody's
expectations that the transaction will close as expected.  Moody's
issues provisional ratings in advance of the final sale of
securities and these ratings reflect Moody's preliminary credit
opinion regarding the refinancing transaction only.  Upon a
conclusive review of the final documentation, Moody's will
endeavor to assign a definitive CFR and a definitive rating to the
senior secured notes.  Definitive ratings may differ from
provisional ratings.

RATINGS RATIONALE

  -- ASSIGNMENT OF (P)Ba3 CFR

The (P)Ba3 CFR assigned to Onorato Armatori reflects the company's
leading market position in the Italian maritime transportation
segment.  With the integration of Tirrenia-CIN, the issuer holds
combined markets shares of around 82% and 86%, respectively, by
number of passengers and linear meters transported in the
Sardinian maritime transportation market as of September 30, 2015.
The issuer benefits from one of the largest ferry fleet in the
Mediterranean sea, with 63 vessels, of which 54 are owned.
Moody's believes that the issuer's sizeable fleet, which would be
costly and take significant time to replicate, creates some
barriers to entry.

The issuer rating is also supported by good revenue visibility
underpinned by the company's long-term public subvention schemes.
The issuer benefits from two subvention schemes contracted with
the Italian government to guarantee all-year service on certain
routes, which together represent around 15% of the issuer's pro
forma revenues in the last 12 months to Sept. 30, 2015.  In
addition, the issuer's freight activities, which represents around
30% of its pro forma revenues, are deemed relatively stable given
the limited alternatives to transport vehicles and freight on and
off Italian islands.

Nevertheless, the issuer exhibits a narrow business focus, with a
high concentration on the Italian market, in particular Sardinia
where the group derives most of its revenues (71% of pro forma
revenues in the last 12 months to Sept. 30, 2015).  While Moody's
acknowledges that Sardinia, Sicilia and Corsica remain very
popular tourist destinations during summer holiday periods, the
issuer is highly reliant on Italian domestic demand for passenger
and cargo growth, its two main businesses.  Albeit showing some
signs of recovery, the Italian economy is still challenged by weak
economic prospects.

That being said the issuer has improved its profitability in
recent years on the back of increased revenues owing to a mild
recovery in passenger and freight volumes, and costs
rationalization.  More importantly, Moody's notes that the
refinancing transaction is occurring at a time when the company
has a very strong trading performance, with reported EBITDA up 38%
and 41% in first nine months of 2015 respectively for Moby and
Tirrenia-CIN. This mostly reflects the significant decline in
bunker prices in the last 12 months, with bunker representing the
largest cost item for the issuer.  While the decline in fuel price
is currently beneficial to the group's profitability, Moody's
cautions that fluctuations in fuel price can result in material
volatility for the group's profitability in the future.  This risk
is however partly mitigated for the next 12 to 18 months by the
company's hedging agreements in place.

Moody's believes that the completion of the integration of
Tirrenia-CIN entails some execution risks.  While the combination
of Moby and Tirrenia-CIN's respective businesses offer some
potential revenue synergies and cost rationalization
opportunities, the integration will involve large operations and
will therefore demand a considerable amount of management time and
attention to secure the efficiency of the group.  In addition,
Moody's notes that the issuer currently faces intense regulatory
scrutiny.  While the acquisition of the remaining 60% of Tirrenia-
CIN it did not already own was recently approved by Italian
Antitrust authorities, the European Commission is currently
investigating the existing and historical public subvention
payments received by Tirrenia-CIN, with a final decision expected
in mid-2016.

The (P)Ba3 CFR also reflects the issuer's moderate leverage.  Pro
forma of the proposed refinancing transaction, Moody's estimates
that the issuer's leverage (i.e. gross debt/EBITDA, including
Moody's adjustments) will be around 4.2x.  The issuer presents a
good deleveraging profile owing to the planned mandatory debt
repayments, notably the EUR180 million of deferred payments due by
the company in connection with the acquisition of Tirrenia's
assets in July 2012.  The issuer's high debt service over the next
three years is mitigated by its solid free cash flow generation
prospects.

Onorato Armatori presents a conservative liquidity profile, with
an opening cash balance expected at c. EUR90 million pro forma of
the refinancing transaction as at end-December 2015.  The
company's core passenger ferry activities involve some seasonality
in cash flows given the nature of demand, which peaks during the
summer holiday season.  To mitigate this risk, the issuer can rely
on a covenanted EUR60 million revolving credit facility (RCF, with
a maturity of five years).  This facility is expected to remain
largely undrawn or may be used to cover some working capital
requirements during the off-peak season, notably dry-docking
costs.  Moody's expects that the issuer will retain an adequate
liquidity profile thanks to positive free cash flow generation
anticipated in the next 12 to 18 months, as the company has no new
ships on order and no major replacement of assets currently
planned.

STRUCTURAL CONSIDERATIONS

The (P)Ba2 rating (LGD3), which is one notch above the CFR,
assigned to the company's proposed EUR300 million senior secured
notes, reflects the significant amount of lower priority
obligations in the capital structure.  The proposed notes will
rank pari passu with the issuer's EUR200 million new secured term
loan due 2021 and the EUR60 million RCF due 2021.  The notes will
be secured on a first-priority basis by most of the group's assets
(including mortgages over Moby and Tirrenia-CIN's vessels) and
will benefit from a guarantor package including upstream
guarantees from Moby and Tirrenia-CIN, representing around 91% of
the group's EBITDA.  The EUR180 million deferred payments due by
Tirrenia-CIN are unsecured obligations and will be subordinated to
the issuer's notes and credit facilities instruments with respect
to the collateral enforcement proceeds.

Moody's cautions that upstream guarantees from Moby and Tirrenia-
CIN are limited by the amount of available reserves under Italian
law.  However Moody's expects that (i) the planned merger between
Moby and Onorato Armatori following the transaction and (ii) the
accumulation of profits at Tirrenia-CIN's level will substantially
reduce this risk over time.

RATIONALE FOR THE STABLE OUTLOOK

The stable rating outlook reflects Moody's expectation that
Onorato Armatori will maintain its competitive positioning and
continue to improve its profitability, notably through the
achievement of cost savings expected as part of the integration of
Tirrenia-CIN.  The stable outlook also reflects Moody's
expectations of continued positive free cash flow generation.

WHAT COULD CHANGE THE RATING UP/DOWN

Moody's could upgrade the ratings if Onorato Armatori maintains a
solid positive free cash flow generation.  In addition, from a
quantitative perspective, an adjusted (gross) debt/EBITDA
sustainably below 3.5x could trigger an upgrade.

Conversely, Moody's could downgrade the ratings if Onorato
Armatori's free cash flow generation becomes negative for a
prolonged period of time as a result of a weakened operating
performance or higher-than-expected capital expenditures.
Quantitatively, an adjusted (gross) debt/EBITDA ratio trending
towards 4.5x could trigger a downgrade.  A weakening in the
company's liquidity profile could also exert downward pressure on
the rating.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global
Shipping Industry published in February 2014.

Headquartered in Milan, Italy, Onorato Armatori S.p.A. is a
maritime transportation services company that focuses primarily on
passengers and freight services in the Tyrrhenian Sea, mainly
between continental Italy and Sardinia.  Through Moby and
Tirrenia-CIN, the group operates a fleet of 63 ships.  In the last
12 months September 2015, the company recorded, pro forma revenues
of EUR614 million and pro forma EBITDA of EUR162 million.


ONORATO ARMATORI: S&P Assigns Prelim. B+ CCR, Outlook Developing
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its
preliminary 'B+' long-term corporate credit rating to Italy-based
ferry operator Onorato Armatori SpA.  The outlook is developing.

The final ratings will depend on S&P's receipt and satisfactory
review of all final transaction documentation.  Accordingly, the
preliminary ratings should not be construed as evidence of the
final ratings.  If Standard & Poor's does not receive final
documentation within a reasonable time frame, or if final
documentation departs from materials reviewed, S&P reserves the
right to withdraw or revise its ratings.

The preliminary rating on Onorato Armatori reflects S&P's
assessment of the company's fair business risk profile and
significant financial risk profile.  S&P's preliminary rating also
incorporates a one-notch downward adjustment for its assessment of
liquidity of less than adequate and a one-notch downward
adjustment under S&P's comparable rating analysis modifier
following its evaluation of the group's credit characteristics in
aggregate.

"Our assessment of Onorato Armatori's business risk profile as
fair reflects the company's exposure to the cyclical
transportation industry, which we view as high risk, and its
narrow business scope compared with global ship operators and
transport service providers.  The company's business model is
built mainly around ferry operations providing services via two
main operating subsidiaries: Moby and Tirrenia-CIN, which jointly
manages a fleet of 46 passenger and cargo ferries and 17 tug
boats.  Onorato Armatori predominantly serves routes between
continental Italy and Italian islands (also Corsica), with a large
concentration on the Sardinia route, which accounts for more than
two-thirds of the company's revenues.  We understand that the
passenger ferry routes, which account for more than half of
Onorato Armatori's revenues, are highly seasonal with some not
being profitable during the low tourist season and certain routes
never turning a profit.  Nevertheless, annual contracted subsidies
of about EUR87 million from the Italian government for all of
Tirrenia-CIN's and some of Moby's loss-making routes -- in
exchange for a provision of a certain standard and frequency of
service -- help to smooth earnings and boost profitability.
However, the European Commission has challenged this payment as
potential unauthorized state subvention and the outcome of the
ongoing investigation, which also encompasses other issues related
to the alleged unfair conduct of the privatization of Tirrenia-CIN
business, is difficult to predict.  On top of its ferry
operations, Onorato Armatori generates about 30% of its total
revenue from cargo transportation, which we consider to have more
stable volume patterns throughout the year," S&P said.

"The weaknesses to Onorato Armatori's business risk profile are
furthermore mitigated, in our view, by its leading and fairly
protected position as a ferry operator in the niche Italian
market.  This is underpinned by a well-recognized and long-
standing brand, notably Moby, operating in the maritime industry
since the 18th century.  The weaknesses are also mitigated by
Onorato Armatori's well-invested, relatively young, and difficult-
to-replicate vessel fleet.  We also believe that the company's
business model of mainly targeting families with children, who
prefer to travel in their own car, faces little competition from
other means of transport, such as airlines.  The company's
competitive advantage is further supported by its relatively large
fleet, compared with other European ferry operators, which
provides frequent rides to match high season demand, drives the
economies of scale, and underpins operating efficiencies.  We also
take a positive view of Onorato Armatori's demonstrated ability to
proactively manage its exposure to fluctuations in bunker fuel
prices (95% and 80% of the 2015-fuel cost has been hedged for 2016
and 2017, respectively) and its fairly flexible cost base.  We
consider this flexibility to be essential in managing
profitability during the slack winter season," S&P noted.

S&P's assessment of Onorato Armatori's financial risk profile
reflects S&P's forecast of the company's continued revenue growth
and persistent EBITDA margins.  These are backed by bunker fuel
cost hedging and realization of the synergies unlocked from a
consolidation of Moby and Tirrenia-CIN's businesses, which result
in positive free operating cash flows.  S&P therefore believes the
company will be able to achieve Standard & Poor's-adjusted funds
from operations (FFO) to debt of 20%-23% over the 2016-2017
forecast period, which S&P sees as commensurate with a significant
financial risk profile.

S&P's base case assumes:

   -- Mid-single-digit percentage sales growth, linked to S&P's
      estimates of annual GDP and inflation growth rates for
      Italy and the eurozone.

   -- Low cost-base growth reflecting hedged bunker fuel exposure
      over the next two years and cost synergies, which should
      enable Onorato Armatori to generate an average adjusted
      EBITDA margin of about 30%.

   -- Proceeds of about EUR40 million from vessel disposal in
      2016.

   -- The addition of a few chartered-in vessels, resulting in
      higher annual charter expenses.

   -- Annual capital expenditure (capex) of EUR45 million-EUR75
      million in 2016-2017 for fleet modernization, dry-dockings
      and the purchase of one extra vessel over the forecast
      period.

   -- State subventions continuing in 2016 and in 2017.  S&P
      assumes that any potential changes to state-subvention
      could be largely mitigated by termination of services and
      other efficiency measures.

   -- No dividend distribution.

   -- About 95% of the company's cash is immediately accessible
      and deducted from debt for our ratio calculation purposes.

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

   -- A weighted-average ratio of adjusted FFO to debt of 20%-23%
      in 2016-2017.

   -- A weighted-average ratio of adjusted debt to EBITDA of
     3x-4x in 2016-2017.

The preliminary rating incorporates a one-notch downward
adjustment for S&P's assessment of liquidity of less than adequate
and one-notch downward adjustment under S&P's comparable rating
analysis modifier following its evaluation of the company's credit
characteristics in aggregate, which mainly reflects S&P's view
that Onorato Armatori's business risk and financial risk profiles
are at the weaker end of their range.

Specifically, S&P could take a positive rating action if the
repayment amount ruled by the European Commission did not
considerably exceed the deferred amount of EUR180 million, which
would remove the uncertainty over Onorato Armatori's liquidity
position and stabilize its credit quality.  In addition, ratings
upside would depend on the company being able to maintain the
ratio of FFO to debt at more than 20%.

S&P would be likely to lower the rating by one or more notches if
the European Commission's decision resulted in Onorato Armatori
having to repay significantly more than the deferred payment
amount, likely leading to a liquidity shortfall for the company.
S&P considers the downside scenario as less likely than the upside
scenario.



===================
K A Z A K H S T A N
===================


EURASIAN RESOURCES: S&P Puts 'B-/B' CCR on CreditWatch Negative
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B-/B' corporate
credit ratings on Kazakh miner Eurasian Resources Group S.a.r.l.
(ERG) on CreditWatch with negative implications.

The CreditWatch placement reflects the possibility that S&P could
lower the ratings if ERG's liquidity further deteriorates.
Although ERG has recently signed an agreement with one of its main
lenders, and S&P understands that the signing of a further
agreement with the company's other lender is imminent, these
agreements (to refinance a total $5.7 billion of debt) would
remain unavailable until various conditions are satisfied.
Moreover, S&P believes that ERG needs to secure additional funds
to finance an expected widening free operating cash flow deficit
in 2016, as commodities continue to trade at very low levels.

S&P recently revised its 2016 price assumptions for iron ore and
aluminum, key commodities in ERG's portfolio, down to $40 per ton
(/ton) for iron ore and $1,500/ton for aluminum.  In S&P's view,
these very weak commodity prices impair the company's cash-
generating capacity (after taking into account some favorable
contracts the company has in place).  S&P believes that, apart
from ferrochrome, most ERG divisions will report negative to
break-even operating cash flows this year (including maintenance
capital expenditure).  In 2015, the average price of ferrochrome
fell by 10% compared to the average price in 2014.  The current
spot price is more than 15% below the average price in 2015,
representing a material downside to the company's EBITDA in 2016.
Under S&P's base-case scenario, it expects a deficit of more than
$200 million in 2016.

S&P understands that the company will shortly conclude the signing
of facility agreements, restructuring its $5.7 billion debt
(including the $1.7 billion due June 2016) with Russian lenders,
VTB and Sberbank. The company expects to draw the new loan
facilities by the end of the first quarter, following the
satisfaction of the conditions precedent.  That said, S&P believes
that the capital structure of the company will remain
unsustainable under current commodity prices after the
refinancing.  In S&P's view, the combination of the operating cash
flow deficit and pro forma debt maturities will consume all of the
cash on ERG's balance sheet in the second half of 2016 (as of
October 2015, the company had $528 million readily available).
According to management, the completion of the refinancing should
remove some uncertainty and allow the company to negotiate new
facilities to meet the expected cash flow deficit.  In S&P's view,
without attracting sizable facilities, the company could default
in the second half of the year.

S&P's rating continues to reflect the potential support of the
Kazakh government, the largest shareholder in ERG with a 40%
stake.  S&P takes into account the government's extensive
involvement in the running of ERG and the company's public role as
the main mining company in Kazakhstan, with a large workforce in
remote regions.  Over the past year, the government has provided
some indirect support through measures such as providing more than
$400 million of loans from the Development Bank of Kazakhstan,
lowering some taxes, and others.  However, S&P also factors some
uncertainty in regard to the timeliness and extent of such
support, especially as ERG's liquidity deteriorates.

The CreditWatch placement reflects the possibility that S&P could
downgrade ERG by more than one notch in the coming months,
indicating a potential default over the short term, should the
refinancing not proceed as expected and the company is unable to
secure new facilities to finance the expected widening deficit in
free operating cash flow in 2016.

S&P aims to resolve the CreditWatch placement by the end of April
2016.



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


HOLLAND HOMES: Fitch Affirms 'BBsf' Rating on Class B Notes
-----------------------------------------------------------
Fitch Ratings has placed Holland Homes Oranje MBS B.V.'s class A
notes on Rating Watch Negative (RWN) and affirmed two tranches, as
follows:

Class A (ISIN XS0238851827): 'AAAsf'; on RWN
Class S (ISIN XS0729849439): affirmed at 'BBB+sf'; Outlook Stable
Class B (ISIN XS0238855141): affirmed at 'BBsf'; Outlook Stable

The Dutch RMBS transaction is backed by Nationale Hypotheek
Garantie (NHG) residential mortgage loans originated by DBV
Levensverzekeringsmaatschappij B.V. (DBV; part of SNS Bank N.V.;
BBB/Stable/F3).

KEY RATING DRIVERS

Stable Asset Performance

The asset performance has remained stable over the past 12 months.
As of October 2015, the portion of loans in arrears by more than
three months was reported as 0.1% of the outstanding pool balance,
which is well below Fitch's NHG three-months plus index of 0.4%.
To date, only 0.1% of the initial pool balance has been foreclosed
at a loss since closing.

Counterparty Exposure

The RWN on the class A notes reflects the exposure to payment
interruption risk. The loans in the portfolio are serviced by
SRLEV, which has appointed Stater Nederland (part of ABN AMRO;
Fitch Servicer Rating: RPS1-) as a sub-servicer. While Stater
remains one of the highest rated servicers with strong industry
experience, Fitch believes the absence of structural features that
would mitigate any disruption in borrower collections in the event
of servicer default is a risk. In its analysis, Fitch assessed the
liquidity available in the transaction to fully cover stressed
senior fees, net swap payments and note interest in the event of
servicer default. This showed that the reserve fund balance is
insufficient to provide payments to the notes for one payment
period should the servicer default.

Fitch will monitor the progress of potential remedial actions, if
any, and expects to resolve the RWN in three months' time. Failure
to implement appropriate remedial actions will result in multi-
category downgrades of the class A notes.

Fitch notes that the expected substitution of SRLEV by SNS Bank as
servicer does not have an impact on the payment interruption
analysis, as the sub-servicing will continue to be performed by
Stater Nederland.

RATING SENSITIVITIES

The class A and S notes have low credit enhancement relative to
other Dutch transactions with similar pool characteristics. Hence,
these tranches are more sensitive to a change in asset performance
and an increase in arrears and defaults, beyond Fitch's stresses,
could have a negative impact on the ratings.

DUE DILIGENCE USAGE

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

DATA ADEQUACY

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

Fitch did not undertake a review of the information provided about
the underlying asset pool ahead of the transaction's initial
closing. The subsequent performance of the transaction over the
years is consistent with the agency's expectations given the
operating environment and Fitch is therefore satisfied that the
asset pool information relied upon for its initial rating analysis
was adequately reliable.

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



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


CB INTERCOMMERZ: S&P Lowers Counterparty Credit Ratings to 'R/R'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long- and short-
term foreign and local currency counterparty credit ratings on
Russia-based CB Intercommerz Ltd. to 'R/R' from 'B-/C' and its
Russia national scale rating to 'R' from 'ruBBB-'.

On Jan. 29, 2016, the Central Bank of Russia (CBR) introduced
temporary administration for Intercommerz for the next six months,
and S&P understands that the CBR has suspended the authority of
the bank's management.  The rating actions reflect S&P's view of
the regulatory risk related to the CBR's intervention.  S&P
believes that the CBR's measures indicate that Intercommerz is
under financial stress and may face difficulties meeting its
financial obligations.

Under such a scenario, in S&P's opinion, the Russian regulators
(the CBR or the Deposit Insurance Agency [DIA]) may execute the
power to favor one class of the bank's obligations over others or
suspend payment of the bank's outstanding liabilities.  This is in
line with S&P's 'R' (under regulatory supervision) rating
category.  Any further rating actions on Intercommerz will depend
largely on the CBR's future decisions regarding the bank, as well
as S&P's opinion of the bank's business and financial prospects
once this information becomes available.

In S&P's opinion, based on similar situations in Russia, the
outcome of the placement of a bank under temporary administration
could be:

   -- A total or partial sale to a strategic investor that is
      willing to take over the bank;

   -- A potential bail-in by the bank's creditors;

   -- Transfer of the bank for long-term management under the
      DIA's rehabilitation plan; or

   -- Run-off of the bank's operations if it appears that its
      business model is not viable.

At this stage, it is not clear how Intercommerz's placement under
temporary administration will be resolved.  S&P will continue to
monitor how the CBR proceeds to handle Intercommerz's management.


HEPHAESTUS INSURANCE: Placed Under Provisional Administration
-------------------------------------------------------------
The Bank of Russia, by its Order No. OD-237, dated January 28,
2016, took a decision to appoint from January 28, 2016,
provisional administration to HEPHAESTUS Insurance JSC.

The decision to appoint the provisional administration was taken
due to the improper fulfillment by the Company of its solvency
restoration plan.

The powers of the executive bodies of the Company are suspended.

Alexander M. Pastushkov, receiver, member of SRO SEMTEK non-profit
partnership, has been approved as a head of the provisional
administration.


KOMMERCHESKY MEZHREGIONALNY: Under Provisional Administration
-------------------------------------------------------------
The Bank of Russia, by its Order No. OD-269, dated January 29,
2016, revoked the banking license of Moscow-based credit
institution Kommerchesky Mezhregionalny Trastovy Bank, LLC from
January 29, 2016.

The Bank of Russia took such an extreme measure -- revocation of
the banking license -- because of the credit institution's failure
to comply with federal banking laws and Bank of Russia
regulations, equity (capital) adequacy ratios below 2 per cent,
inability to meet creditors' claims on monetary obligations, and
application of supervisory measures envisaged by the Federal Law
"On the Central Bank of the Russian Federation (Bank of Russia)."

LLC CB MTB Bank implemented high-risk lending policy and did not
create loan loss provisions adequate to risks assumed.  The bank's
equity (capital) adequacy was reduced to a critical level. Due to
the loss of liquidity the credit institution failed to meet its
obligations to creditors on a timely basis.  Besides, the bank was
involved in conducting large-value dubious transit operations.

The management and owners of the credit institution did not take
effective measures to normalize its activities.  Under these
circumstances, Bank of Russia performed its duty on the revocation
of the banking license from the credit institution in accordance
with Article 20 of the Federal Law "On Banks and Banking
Activities".

The Bank of Russia, by its Order No. OD-270, dated January 29,
2016, appointed a provisional administration to LLC CB MTB Bank
for the period until the appointment of a receiver pursuant to the
Federal Law "On the Insolvency (Bankruptcy)" or a liquidator under
Article 23.1 of the Federal Law "On Banks and Banking Activities".
In accordance with federal laws, the powers of the credit
institution's executive bodies are suspended.

LLC CB MTB Bank is a member of the deposit insurance system.  The
revocation of banking license is an insured event envisaged by
Federal Law No. 177-FZ "On Insurance of Household Deposits with
Russian Banks" regarding the bank's liabilities on deposits of
households determined in accordance with the legislation.  The
said Federal Law stipulates the insurance premium as one hundred
per cent reimbursement of the entire deposit to bank depositors,
including individual entrepreneurs, but not more than 1.4 million
rubles in aggregate per depositor.

According to the financial statements, as of January 1, 2016, LLC
CB MTB Bank ranked 329th by assets in the Russian banking system.


RUSSIA: Mulls Privatization of Seven State Companies
----------------------------------------------------
BBC News reports that Russia is lining up seven state companies,
including airline Aeroflot, for potential privatization.

Kremlin spokesman Dmitry Peskov said the list of companies to be
privatized and the size of the stakes were yet to be finalized,
BBC relates.

But he said that foreign investors would be welcome to buy shares
in the sale, BBC notes.

The potential sell-off is expected to raise in the region of
RUR500 to RUR800 billion (US$6.5 billion; GBP4.5 billion), BBC
says.

According to BBC, the firms that could be privatized are:

   -- airline Aeroflot
   -- oil company Bashneft
   -- oil company Rosneft
   -- Shipping firm Sovkomflot
   -- diamond miner Alrosa
   -- State bank VTB
   -- Russian railways

The heads of seven state owned businesses were invited to the
Kremlin by President Putin to discuss the possible privatization
plans, BBC relays.

The list is still under discussion and it's believed the sale
could take place in the second half of this year, BBC states.

The fall in oil prices has left a large shortfall in the country's
income and there are worries this could force Russia into a second
year of recession, BBC discloses.

The country has relied on oil and gas revenues for more than half
of its budget until 2014, but the drastic fall in oil prices has
dented this income drastically, according to BBC.


ZSG INSURANCE: Placed Under Provisional Administration
------------------------------------------------------
The Bank of Russia, by its Order No. OD-240, dated January 28,
2016, took a decision to appoint from January 28, 2016,
provisional administration to ZSG Insurance Company, LLC.

The decision to appoint the provisional administration followed
the suspension of the Company's insurance license (Bank of Russia
Order No. OD-3721, dated December 24, 2015).

The powers of the executive bodies of the Company are suspended.

Nikolay Ye. Gulyashchikh, receiver, member of the non-profit
partnership of the First SRO AU Association, has been approved as
a head of the provisional administration.



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


GULF KEYSTONE: Prepares for Debt Restructuring After Cash Falls
---------------------------------------------------------------
Luca Casiraghi at Bloomberg News reports that Gulf Keystone
Petroleum Ltd. bondholders are preparing for a potential debt
restructuring after the company's cash holdings fell below an
alert-trigger level in October.

According to Bloomberg, two people familiar with the matter said
GLG Partners, Sothic Capital Management and Taconic Capital
Advisors are among distressed-debt investors who have banded
together and hired Houlihan Lokey Inc. to advise them.

The bondholders are organizing as Gulf Keystone contends with late
payments from the Kurdistan Regional Government and slumping oil
prices, Bloomberg relays.  Notes issued by the company, which
holds licenses to export crude from the autonomous Kurdish region
in northern Iraq, are quoted near record lows, Bloomberg states.

Bondholders agreed to a change of terms in April, when they also
added a clause saying the company had to make an announcement when
cash holdings were below $50 million for five consecutive days,
Bloomberg discloses.  The London-based company said in October
that cash had fallen below this level, Bloomberg recounts.

The people said the oil producer may be able to meet interest
payments totaling USUS$53 million due in April and October because
it has started to receive more regular payments from Kurdistan,
Bloomberg notes.  They said still, refinancing US$575 million of
debt maturing next year will be difficult unless payments continue
and oil prices rebound, Bloomberg relates.

Gulf Keystone Petroleum Limited is an oil and gas exploration and
production company operating in the Kurdistan region of Iraq.  It
is listed on the main market of the London Stock Exchange.


LEHMAN BROTHERS UK: February 15 Claims Filing Deadline Set
----------------------------------------------------------
Pursuant to Rule 2.95 of the Insolvency Rules 1986, Derek Howell,
Anthony Victor Lomas, Steven Pearson, Gillian Bruce and Julian Guy
Parr, the Joint Administrators of Lehman Brothers UK Holdings
Limited ("LBUKH"), intend to make a distribution (by way of paying
an interim dividend) to the unsecured, non-preferential
subordinated creditors of LBUKH.

Proofs of debt may be lodged at any point up to (and including) 15
February 2016, the last date for proving claims, however,
creditors are requested to lodge their proofs of debt at the
earliest possible opportunity.

Persons so proving are required, if so requested, to provide such
further details or produce such documents or other evidence as may
appear to the Joint Administrators to be necessary.

The Joint Administrators will not be obliged to deal with proofs
lodged after the last date for proving but they may do so if they
think fit.

The Joint Administrators intend to make such distribution within
the period of two months from the last date for proving claims.

For further information, contact details, and proof of debt forms,
please visit http://is.gd/Tg3gx2

Please complete and return a proof of debt form, together with
relevant supporting documents, to PricewaterhouseCoopers LLP, 7
More London Riverside, London SE1 2RT marked for the attention of
Jennifer Hills.  Alternatively, you can email a completed
proof of debt form to lehman.affiliates@uk.pwc.com

Rule 2.95(2)(c) of the Insolvency Rules 1986 requires the Joint
Administrators to state in this notice the value of the prescribed
part of LBUKH's net property which is required to be made
available for the satisfaction of LBUKH's unsecured debts pursuant
to section 176A of the Insolvency Act 1986.  There are no floating
charges over the assets of LBUKH and accordingly, there shall be
no prescribed part.  All of LBUKH's net property will be available
for the satisfaction of LBUKH's unsecured debts.


TURBO FINANCE 6: Moody's Assigns (P)Ba2 Rating to Class C Notes
---------------------------------------------------------------
Moody's Investors Service has assigned these provisional ratings
to the Notes to be issued by Turbo Finance 6 plc:

  GBP M Class A Floating Rate Asset Backed Notes due February
   2023, Assigned (P)Aaa(sf)

  GBP M Class B Floating Rate Asset Backed Notes due February
   2023, Assigned (P)Aa3(sf)

  GBP M Class C Fixed Rate Asset Backed Notes due February 2023,
   Assigned (P)Ba2(sf)

Moody's has not assigned ratings to the subordinated Class D
Notes.  The proceeds of the Class D Notes will be applied to fund
the reserve fund in the transaction.

RATINGS RATIONALE

The transaction is a revolving cash securitization of hire
purchase agreements (auto leases) extended to obligors in the
United Kingdom by MotoNovo Finance Ltd, a division of FirstRand
Bank Limited ("FRB") (Baa2/P-2/Baa1(cr)/Negative Outlook) acting
through its London Branch ("FRB London").  This will be the sixth
public securitization transaction in the United Kingdom sponsored
by FRB London.  The sponsor will also act as the servicer of the
portfolio during the life of the transaction.

The portfolio of receivables backing the notes consists of hire
purchase agreements granted to individuals and companies resident
in the United Kingdom collateralized by mostly used vehicles.  In
each underlying agreement, the obligor is required to pay a
monthly installment of interest and principal during the term of
the contract.  Title to the vehicle passes to them only once they
have paid all the installments under their agreements.  The
majority of the hire purchase agreements in the portfolio do not
have any balloon risk, and the replenishment criteria limit
balloon agreements to a maximum of 3%.  As of Dec. 31, 2015, the
provisional portfolio consists of 53,342 hire purchase contracts,
with a weighted average seasoning of 4 months and a weighted
average remaining term of 48 months.

The transaction's main credit strengths are the granular
portfolio, relatively simple waterfall, significant excess spread
and counterparty support through the back up servicer, swap
provider and independent cash manager.  The 0.7% reserve fund
(which will grow to 1.3% of the portfolio balance and can amortize
subject to a floor of 0.5% of the initial pool balance) will be
available to cover liquidity shortfalls on Classes A and B
throughout the life of the transaction and can serve as credit
enhancement following repayment of the Class A and B Notes.  The
transaction benefits from a weighted-average minimum yield of
12.5% for replenished assets, and has 12.7% currently.  Available
excess spread can be trapped to cover defaults and losses, as well
as to build the reserve fund to its target level through the
waterfall mechanism present in the structure.

However, Moody's notes some credit weaknesses.  As with all auto
hire purchase agreements in the UK, the portfolio is exposed to
the risk of voluntary termination.  The obligor has the option to
return the vehicle to the originator as long as the obligor has
made payments equal to at least one half of the total amount which
would have been payable under the contract.  If the obligor
returns the vehicle, then the issuer may be exposed to residual
value risk.  Moody's did not receive gross VT default data from
the originator, but only net VT default data (i.e. with recoveries
included).  In addition, Moody's did not receive static recovery
data for a full product cycle, as prior to 2012 only dynamic
recovery data was available.  Furthermore, the revolving period
introduces an element of uncertainty into the portfolio credit
quality through time.  These aspects were factored in Moody's
overall analysis.

The Class C Notes do not benefit from the cash reserve until
Classes A and B are repaid, and Class C interest and principal is
subordinated to interest and principal payments on Classes A and B
in the waterfall.  Hence, there is an increased possibility of
interest deferral on the Class C Notes.  Moody's took this into
account in its quantitative analysis.

Moody's analysis focused, among other factors, on (i) an
evaluation of the underlying portfolio; (ii) historical
performance information; (iii) the credit enhancement provided by
subordination, by the excess spread and the reserve fund; (iv) the
liquidity support available in the transaction, by way of
principal to pay interest and the reserve fund; (v) the back-up
servicing arrangement of the transaction; (vi) the independent
cash manager and (vii) the legal and structural integrity of the
transaction.

MAIN MODEL ASSUMPTIONS

Moody's assumed a mean default rate of 4.75% for the entire pool,
which takes into account both defaults arising from normal payment
defaults by the obligors and losses arising from the exercise of
the obligors' VT rights.  The fixed recovery rate assumption is
45.0%. A portfolio credit enhancement (PCE) of 15.0% and a
coefficient of variation of 48.6%, respectively, are used as the
other main inputs for Moody's cash flow model ABSROM.  Whilst the
historical default rate for older vintages showed default rates
higher than the assumed gross loss level, Moody's has given
benefit to the lower default rate observed in more recent vintages
as a result of updated underwriting methods used by the
originator.  Commingling risk and set-off risk were assessed to be
commensurate with the ratings assigned on the Notes.

METHODOLOGY

The principal methodology used in these ratings was Moody's
Approach to Rating Auto Loan-and Lease-Backed ABS published in
December 2015.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS:

Factors that may cause an upgrade of the ratings include
significantly better than expected performance of the pool
together with an increase in credit enhancement of the Notes.
Factors that may cause a downgrade of the ratings include a
significant decline in the overall performance of the pool and/or
a significant deterioration of the credit profile of the
originator.

The ratings address the expected loss posed to investors by the
legal final maturity of the Notes.  In Moody's opinion the
structure allows for timely payment of interest on the Class A and
Class B Notes, ultimate repayment of interest on the Class C Notes
and ultimate payment of principal on or before the rated final
legal maturity date on the Class A, B and C Notes.  Moody's
ratings address only the credit risks associated with the
transaction. Other non-credit risks have not been addressed, but
may have a significant effect on yield to investors.

LOSS AND CASHFLOW ANALYSIS:

In rating this transaction, Moody's used ABSROM to model the cash
flows and determine the loss for each tranche.  The cash flow
model evaluates all default scenarios that are then weighted
considering the probabilities of the lognormal distribution
assumed for the portfolio default rate.  In each default scenario,
the corresponding loss for each Class of the Notes is calculated
given the incoming cash flows from the assets and the outgoing
payments to third parties and noteholders.  Therefore, the
expected loss or EL for each tranche is the sum product of (i) the
probability of occurrence of each default scenario; and (ii) the
loss derived from the cash flow model in each default scenario for
each tranche.

STRESS SCENARIOS:

Parameter sensitivities for this transaction have been calculated
in the following manner: Moody's tested 9 scenarios derived from
the combination of the mean default rate: 4.75% (base case), 5.00%
(base case +0.25%), 5.25% (base case + 0.5%) and recovery rate:
45% (base case), 40% (base case - 5%), 35% (base case - 10%). The
4.75% / 45% scenario would represent the base case assumptions
used in the initial rating process.  At the time the rating was
assigned, the model output indicated that Class A would have
achieved Aa1 even if mean default was as high as 5.25% with a
recovery as low as 35% (all other factors unchanged).  Under the
same assumptions, the Class B would have achieved A2 and the Class
C would have achieved B1.  Parameter sensitivities provide a
quantitative, model-indicated calculation of the number of notches
that a Moody's-rated structured finance security may vary if
certain input parameters used in the initial rating process
differed.  The analysis assumes that the deal has not aged.  It is
not intended to measure how the rating of the security might
migrate over time, but rather, how the initial rating of the
tranches might differ as certain key parameters vary.  Therefore,
Moody's analysis encompasses the assessment of stress scenarios.

Moody's issues provisional ratings in advance of the final sale of
securities, but these ratings only represent Moody's preliminary
credit opinion.  Upon a conclusive review of the transaction and
associated documentation, Moody's will endeavor to assign
definitive ratings to the Notes.  A definitive rating may differ
from a provisional rating.  Moody's will disseminate the
assignment of any definitive ratings through its Client Service
Desk.


* UK: Number of Administrations in Retail Sector Down 19% in 2015
-----------------------------------------------------------------
The number of retailers entering administration fell from 119 in
2014 to 96 during 2015, a decrease of 19%.  The number of
administrations in all sectors in England also fell from 1,302 in
2014 to 1,147 companies last year, a 12% decrease, according to
analysis from Deloitte.

Lee Manning, restructuring services partner at Deloitte, said: "We
seem to have avoided what was once a traditional New Year clear-
out of the High Street, with only Brantano and Blue Inc. calling
in the administrators this month.  Although the clothing sector
was heavily impacted by unseasonably warm weather, the value of
December's online sales figures was well ahead of expectations.

"The annual data reminds us that administration is being used less
and less as a restructuring tool, especially by the medium and
larger players in the retail sector.  Solvent restructuring
practices are more common due to the current availability of
funding and a pattern is emerging whereby we are working with
companies on restructuring and refinancing."

The English regions saw a decrease in all sectors, with the
biggest drop being in Yorkshire and the North East of 18% from 203
in 2014 to 167 in 2015.  The smallest decrease was in the North
West, at 7%, while London saw a reduction of 9% in the number of
administrations.

Only two out of the eleven sectors reported on saw an increase in
administrations -- Mining, Energy & Agriculture with a 12%
increase and Transport & Communication with a 5% increase.
Meanwhile the technology and media sector saw the biggest drop in
administrations, 40% from 90 to 54.



===================
U Z B E K I S T A N
===================


AGROBANK: Moody's Raises Long-Term Currency Deposit Ratings to B3
-----------------------------------------------------------------
Moody's Investors Service has upgraded the long-term foreign and
local currency deposit ratings of Uzbekistan-based Agrobank to B3
with a positive outlook from Caa1.  Concurrently, Moody's upgraded
the bank's baseline credit assessment (BCA) and adjusted BCA to
caa3 from ca and the bank's long-term Counterparty Risk Assessment
(CR Assessment) to B2(cr) from B3(cr).

The rating agency also affirmed the bank's short-term local and
foreign currency deposit ratings of Not-Prime and the short-term
CR Assessment of Not-Prime(cr).

"Moody's upgrade of Agrobank's ratings with a positive outlook is
primarily driven by material improvements to Agrobank's loss
absorption capacity," says Lev Dorf, an Assistant Vice President
at Moody's.  "In addition, the rating action reflects Moody's
expectation that the bank will largely address its significant
capital shortfall after successful completion of its capital-
raising plan for 2015-2016."

RATINGS RATIONALE

The upgrade of Agrobank's ratings with a positive outlook reflects
material improvements to Agrobank's loss absorption capacity in
recent years and Moody's expectation that after successful
completion of its capital-raising plan for 2015-2016, the bank
will largely address its significant capital shortfall, which has
been the key negative rating driver in recent years.

Moody's says that under its capital-raising plan for 2015-2016,
Agrobank will raise UZS100 billion (the amount equivalent to
around 24% of its shareholders equity as at YE2014).

According to Moody's, the bank already received the first tranche
of UZS50 billion at the end of December 2015, and expects to
receive the second tranche from its shareholder in H1 2016.

Moody's notes that over the past five years, the bank has
demonstrated progress in strengthening its capital base and
addressing its fraud-related capital shortfall with the help of
regular capital injections by the Uzbekistan government,
Agrobank's majority shareholder.

As a result, Agrobank's shareholders' equity increased by UZS249
billion to UZS469 billion at YE2015 from UZS221 billion at YE2010
(according to local GAAP).

Moody's also notes that the capital increase in recent years has
been offset by lending growth, and the bank's reported capital
levels remain relatively stable.  At the end of 2015, Agrobank
reported total regulatory capital adequacy ratio of 13.4% ,
compared with 13.3% at the end of 2014.

SUPPORT CONSIDERATION

Agrobank's B3 deposit ratings incorporate a three-notch uplift
from its standalone BCA of caa3, reflecting a very high
probability of systemic support, given Agrobank's government
ownership, its large market shares and systemic importance for
Uzbekistan's economy.  The bank has a special mandate for
servicing the socially important agriculture sector and plays an
instrumental role in the implementation of government policy,
acting as a government agent.

WHAT COULD MOVE THE RATINGS UP/DOWN

A further upgrade of Agrobank's ratings (which carry a positive
outlook) will be contingent on its successful completion of its
capital rising programme, resulting in further improvement of its
loss absorption capacity, as well as on the bank's ability to
maintain adequate quality of its loan portfolio.  However, the
outlook on Agrobank's ratings could be changed to stable from
positive should the bank fail to obtain additional capital from
its shareholder, or due to any adverse changes in the bank's risk
profile.

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



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


* S&P Takes Various Rating Actions on 17 European CDO Tranches
--------------------------------------------------------------
Standard & Poor's Ratings Services took various credit rating
actions on 17 European synthetic collateralized debt obligation
(CDO) tranches.

Specifically, S&P has:

   -- Raised and removed from CreditWatch positive its ratings on
      13 tranches in 10 corporate-backed European synthetic CDO
      transactions;

   -- Affirmed and removed from CreditWatch positive S&P's
      ratings on three tranches in one synthetic CDO transaction;
      and

   -- Affirmed, removed from CreditWatch positive, and withdrawn
      S&P's rating on one tranche in one corporate-backed
      European synthetic CDO transaction.

The rating actions are part of S&P's review of various European
synthetic CDOs.  The actions reflect, among other things, the
effect of recent rating migration within reference portfolios and
recent credit events on referenced obligations.  S&P has used its
SROC (synthetic rated overcollateralization; see "What Is SROC?"
below) tool to surveil our ratings on these synthetic CDOs.

WHERE S&P HAS RAISED ITS RATINGS

S&P has raised its ratings to the level at which SROC exceeds 100%
and meets its minimum cushion requirement.

WHERE S&P HAS AFFIRMED OUR RATINGS

S&P has affirmed its ratings on those tranches for which credit
enhancement is, in S&P's opinion, still at a level commensurate
with their current ratings.

WHERE S&P HAS LOWERED ITS RATINGS TO 'D'

S&P has lowered its ratings to 'D' where losses from credit events
in the underlying portfolio exceeded the available credit
enhancement, which caused the rated notes to incur an interest
shortfall or principal losses.

ANALYSIS

S&P has used its CDO Evaluator model 6.3 to determine the amount
of net losses in each portfolio that S&P expects to occur in each
rating scenario.

S&P has also applied our top obligor and industry tests.

WHAT IS SROC?

One of the main steps in S&P's rating analysis is the review of
the credit quality of the portfolio referenced assets.  SROC is
one of the tools S&P uses when surveilling our ratings on
synthetic CDO tranches with reference portfolios.

SROC is a measure of the degree by which the credit enhancement
(or attachment point) of a tranche exceeds the stressed loss rate
assumed for a given rating scenario.  SROC helps capture what S&P
considers to be the major influences on portfolio performance:
Credit events, asset rating migration, asset amortization, and
time to maturity. It is a comparable measure across different
tranches of the same rating.

A list of the Affected Ratings is available at:

                       http://is.gd/ahuLfs

                            *********

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.


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