TCREUR_Public/160210.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 10, 2016, Vol. 17, No. 028


C Z E C H   R E P U B L I C

NEW WORLD: Must Go Bankrupt as Soon as Possible, Union Head Says


MAPLE BANK: Defaults on Financial Obligations at LCH.Clearnet
SINGULUS TECH: Publishes Info on Balance Sheet Restructuring


SOPAF: INPGI Head Sent to Trial Over Bankruptcy


CELF LOAN: S&P Affirms 'B-' Rating on Class D Notes
ECONCERN NV: PwC Settles Legal Dispute for EUR25 Million


SWAN OFFICE: CTP Invest Mulls Acquisition of Business


BANK OBRAZOVANIE: S&P Affirms 'B-/C' Counterparty Credit Ratings
GAZENERGOBANK: DIA's Administration Functions Terminated
JUST BANK: Bank of Russia Halts Provisional Administration
POLYUS GOLD: Fitch Downgrades LT Issuer Default Ratings to 'BB-'
SOLIDARNOST BANK: DIA's Administration Functions Terminated

SVYAZNOY BANK: Bank of Russia Halts Provisional Administration
VITYAZ LTD: Bank of Russia Ends Provisional Administration

U N I T E D   K I N G D O M

CYBG PLC: S&P Assigns 'B' Rating to Newly Issued AT1 Instruments
DECO 6-UK: Fitch Lowers Rating on Class A2 Notes to 'Csf'
DIALOG SEMICONDUCTOR: S&P Withdraws Preliminary 'BB' CCR
HUMBERSIDE MOTOR: Shuts Down Business Following Administration


C Z E C H   R E P U B L I C

NEW WORLD: Must Go Bankrupt as Soon as Possible, Union Head Says
Ladka Bauerova at Bloomberg News reports that the bankruptcy of
coal miner New World Resources Plc, subsequent closing of all
operations, will cost the Czech government "tens of billions" of
koruna over the long-term.

According to Bloomberg, Josef Stredula, head of Czech umbrella
trade union organization, said in interview, "It would be ideal if
the company declared bankruptcy as soon as possible so parts of it
could be salvaged".

"The government won't give a single koruna" to NWR, Bloomberg

The shutdown of NWR mines will create "a huge social problem" with
potential loss of more than 20,000 jobs in Ostrava region,
Bloomberg discloses.

New World Resources Plc is the largest Czech producer of coking


MAPLE BANK: Defaults on Financial Obligations at LCH.Clearnet
Katy Burne at The Wall Street Journal reports that days after
central banks initiated a stress test of two trade-plumbing firms
in Europe, LCH.Clearnet Group Ltd. said Maple Bank GmbH had
defaulted on its financial obligations at the clearinghouse

Martin Pluves, chief executive officer at LCH, declared Maple Bank
to be a "defaulter" in a Feb. 8 notice posted to the
clearinghouse's Web site, the Journal relates.

Maple Bank, whose parent company Maple Financial Group Inc. is
partly owned by National Bank of Canada and Ontario Teachers'
Pension Plan, is a member of LCH's clearing service for repurchase
agreements, the Journal discloses.

The default by the member of LCH's repo service stems from moves
by Germany's financial watchdog BaFin to close in on the Maple
unit in the wake of a tax probe first disclosed in September last
year, the Journal says.

According to the Journal, a spokeswoman for BaFin said in an
emailed statement the regulator banned Maple Bank from certain
payments and disposals "due to the threat of balance-sheet over

Maple Bank GmbH is based in Frankfurt.

SINGULUS TECH: Publishes Info on Balance Sheet Restructuring
The SINGULUS TECHNOLOGIES AG published comprehensive information
about the balance sheet restructuring of the company including
excerpts of the restructuring opinion.

The information was published on the home page of
under the category "Credit Relations" under the section "Second
bondholder meeting on February 15, 2016".

SINGULUS TECHNOLOGIES invited the bondholders of the
EUR60,000,000.00 7.75% bearer notes 2012/2017 to a second
bondholder meeting in Frankfurt am Main.  The meeting will take
place at the HILTON FRANKFURT am Main, Hochstrasse 4, 60313
Frankfurt am Main, on February 15, 2016 at 11:00 a.m. (CET).

The concept for the restructuring of the existing corporate bond
is submitted for resolution.  This restructuring concept, which
has already been coordinated structurally with the joint
representative of the bondholders in the previous year,
fundamentally provides for the bondholders' exchange of their
respective bearer notes into acquisition rights.  These rights
entitle the bondholders to acquire a certain number of
shares of the SINGULUS TECHNOLOGIES AG as well as a certain number
of notes of a secured bond, which will be issued by the company.
In the course of the then following second bondholder meeting the
Executive Board of SINGULUS TECHNOLOGIES will report on the
current course of business activities and will present the
restructuring concept.  The Board will also provide details about
the preliminary financial key figures for the business year 2015.

Furthermore, the company has convened an Extraordinary General
Meeting of the company at the HILTON Hotel Frankfurt, Hochstrasse,
4, 60313 Frankfurt am Main, for Tuesday,
February 16, 2016 at 10:30 a.m.  The agenda items of this
Extraordinary General Meeting amongst others include the
resolution with respect to the corporate actions required for the

The Executive Board of SINGULUS TECHNOLOGIES kindly asks all
shareholders and bondholders to take part in the Extraordinary
General Meeting and the second bondholder meeting, respectively,
and to make use of their voting rights in any case.  It is also
possible to be represented by a representative or alternatively to
authorize a proxy representative of the SINGULUS TECHNOLOGIES.
Prototype forms can be found on the home page under

For the participation in the Extraordinary General Meeting
a registration by February 9, 2016 at the latest is required.  For
the second bondholder meeting a registration by February 12, 2016
at the latest is required.

The restructuring of the corporate bond is an essential
prerequisite for the balance sheet restructuring of the company.
Without this restructuring SINGULUS TECHNOLOGIES will from today's
point of view neither be able to achieve a balance sheet
restructuring nor to safeguard sufficient liquidity in the future.
Therefore, according to the current assessment of the
Executive Board, the implementation of these measures and the
concurrent approval of the bondholders and shareholders is the
only feasible way to prevent an otherwise imminent insolvency of
the company.

                   About SINGULUS TECHNOLOGIES

SINGULUS TECHNOLOGIES develops technologies and machines for
economical and resource-efficient production processes.  The
application areas include vacuum thin-film and plasma coating for
wet-chemical processes as well as thermal process technologies.


SOPAF: INPGI Head Sent to Trial Over Bankruptcy
ANSA reports that Andrea Camporese, president of the Italian
journalists' pension fund INPGI, was sent to trial on Feb. 4 in
the bankruptcy of the Sopaf holding company.

Mr. Camporese, who is accused of fraud and corruption, was sent to
trial along with 12 others, ANSA discloses.

The INPGI head, who denies wrongdoing, has been sent to trial with
financiers Aldo and Andrea Magnoni, among others, ANSA relates.

Sopaf is an Italian investment holding company.


CELF LOAN: S&P Affirms 'B-' Rating on Class D Notes
Standard & Poor's Ratings Services affirmed its credit ratings on
all classes of notes in CELF Loan Partners B.V.

The affirmations follow S&P's assessment of the transaction's
performance using data from the Jan. 18, 2015 payment date report.

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

S&P subjected the capital structure to a cash flow analysis to
determine the break-even default rate (BDR) for each rated class
at each rating level.  The BDR represents S&P's estimate of the
maximum level of gross defaults, based on its stress assumptions,
that a tranche can withstand and still fully repay the
noteholders.  In S&P's analysis, it used the portfolio balance
that it considers to be performing (EUR79,349,321), the current
weighted-average spread (3.37%), and the weighted-average recovery
rates calculated in line with S&P's corporate CDO criteria.  S&P
applied various cash flow stresses, using its standard default
patterns, in conjunction with different interest rate and currency
stress scenarios.

Since S&P's Sept. 17, 2014 review, the aggregate collateral
balance has decreased by EUR74.08 million to EUR79.35 million.
The class A notes have fully redeemed, while the class B notes --
now the senior most classes of notes outstanding -- have amortized
by EUR39.80 million and have a note factor of 26.30%.  The
available credit enhancement has increased for all of the rated
classes of notes due to the transaction's structural deleveraging.

The weighted-average recovery rates have increased since S&P's
previous review at all rating levels, while the weighted-average
spread earned on the underlying portfolio assets has decreased to
337 basis points (bps) from 395 bps.  The portfolio's credit
quality has remained stable since S&P's previous review, while the
transaction's weighted-average life has marginally reduced to 3.7
years from 4.0 years.

The issuer has entered into asset swap agreements with JPMorgan
Chase Bank N.A. to hedge any resultant currency risk from
non-euro denominated assets (12.12% of the portfolio balance).
The documented downgrade provisions in these asset swap contracts
do not fully comply with our current counterparty criteria.  S&P
has therefore applied currency stresses on these non-euro assets
to test the effect on the class B ratings -- rated above the
ratings on the counterparty -- if the counterparty failed to

S&P has also applied its non-sovereign ratings criteria.  S&P has
considered the transaction's exposure to sovereign risk because
some of the portfolio's assets -- 14.1% of the transaction's total
collateral balance -- are based in Spain and Italy.  In 'AAA'
rating scenarios, S&P has limited credit to 10% of the
transaction's collateral balance, to correspond to assets based in
these sovereigns in S&P's calculation of the aggregate collateral

The results of S&P's credit and cash flow analysis and the
application of its current counterparty and non-sovereign ratings
criteria indicate that the available credit enhancement for the
class B notes is commensurate with the currently assigned rating.
S&P has therefore affirmed its 'AAA (sf)' rating on this class of

S&P's ratings on the class C-1, C-2, and D notes are constrained
by the application of the largest obligor default test, a
supplemental stress test that S&P outlines in its corporate CDO
criteria.  This assesses whether a CDO tranche has sufficient
credit enhancement to withstand specified combinations of
underlying asset defaults, based on the ratings on the underlying
assets.  The test assumes a flat recovery of 5%.  The obligor
concentration risk has increased due to portfolio deleveraging,
with only 22 performing obligors, down from 35 in S&P's previous

Although S&P's cash flow analysis indicates that the class C-1,
C-2, and D notes can support higher ratings than those currently
assigned (due to increased available credit enhancement), the
largest obligor default test caps S&P's ratings on these classes
of notes.  S&P has therefore affirmed its 'BB+ (sf)' ratings on
the class C-1 and C-2 notes and 'B- (sf)' rating on the class D

CELF Loan Partners is a cash flow collateralized loan obligation
(CLO) transaction that securitizes loans to primarily speculative-
grade corporate firms.  The transaction is managed by CELF
Advisors LLP.


Class         Rating

CELF Loan Partners B.V.
EUR450 Million Secured Floating And Fixed-Rate Notes

Ratings Affirmed

B             AAA (sf)
C-1           BB+ (sf)
C-2           BB+ (sf)
D             B- (sf)

ECONCERN NV: PwC Settles Legal Dispute for EUR25 Million
-------------------------------------------------------- reports that accountancy group PricewaterhouseCoopers
(PwC) has paid EUR25 million into the inventory of bankrupt energy
group Econcern in an out of court settlement.

According to, the settlement ends PwC's legal fight
against the accountancy sector's disciplinary board, which
suspended two PwC accountants for one month for wrongly approving
the accounts of the company in 2007.

Details of the agreement are published in the 16th report on the
bankruptcy published by the official receivers,

Econcern went bust in 2009 owing EUR1 billion,
recounts.  It had started out as a small cooperative in Utrecht
but had grown into an international concern with operations in 24
countries by the time it collapsed, relates.

Headquartered in Utrecht, Netherlands, Econcern NV -- is the holding company of Ecofys,
Evelop, Ecostream, OneCarbon and Ecoventures.  Econcern, through
its subsidiaries, engages in developing, constructing, and
operating sustainable energy projects.  It provides photovoltaic
conversion and mounting systems, as well as inverters.  The
company offers sustainable energy solutions, as well as research,
consultancy, and project development services in various fields,
including solar energy, wind energy, bio energy, seawater air-
conditioning, utility buildings, and hydrogen and fuel cell
technology.  Econcern was founded in 1984 and is based in Utrecht,
the Netherlands.


SWAN OFFICE: CTP Invest Mulls Acquisition of Business
Bogdan Alecu at Ziarul Financiar, reports that Czech Republic's
CTP Invest, one of the most active companies on the Romanian
property market, is eyeing the Swan Office & Technology Park in
Pipera-Tunari north of Bucharest.

As reported by the Troubled Company Reporter-Europe on Oct. 20,
2014, Ziarul Financiar related that the insolvent office compound
was set to be auctioned off again at a starting price lower by
EUR9 million, to EUR22 million.  The starting price was less than
half the project's investment value of over EUR50 million, Ziarul
Financiar disclosed.


BANK OBRAZOVANIE: S&P Affirms 'B-/C' Counterparty Credit Ratings
Standard & Poor's Ratings Services affirmed its 'B-/C' long- and
short-term counterparty credit ratings and 'ruBBB-' Russia
national scale rating on Russia-based Commercial Bank Obrazovanie.
The outlook is negative.

The rating affirmation reflects S&P's expectation that Bank
Obrazovanie will restore its capitalization to a moderate level,
supported by a shareholder capital injection of Russian ruble
(RUB)1 billion (about $13 million) planned for 2016.  S&P
estimates that the bank's capitalization, as measured by its risk-
adjusted capital (RAC) ratio, weakened to about 4.6%-4.9% at year-
end 2015, from 7.5% at year-end 2014.  This was because balance
sheet growth was about 50% higher than originally budgeted by the
bank due to new business generation and the effect of ruble

S&P's negative outlook on Bank Obrazovanie reflects pressure on
the bank's capitalization, liquidity, and asset quality from
negative trends in economic and industry risk in the Russian
banking sector, which S&P expects will persist in 2016.

S&P could lower the ratings in the next 12 months if the bank's
planned RUB1 billion capital increase does not take place in 2016,
which would result in material depletion of its capital buffers in
view of modest internal capital generation and high growth rates.
S&P may also lower the ratings if it observes a significant
deterioration in the bank's liquidity position, given the
importance of a few large depositors.  A material increase in NPLs
above the levels seen at other small rated banks in Russia or any
other tangible evidence of default will also be viewed negatively.
A substantial increase in economic and industry risks in the
Russian banking sector would also warrant a negative rating

All else being equal, S&P would consider revising the outlook to
stable in the next 12 months if operating conditions for the
Russian banking sector as a whole stabilize, notably with stable
economic and industry risk trends, while the bank's capital
buffers strengthen.

GAZENERGOBANK: DIA's Administration Functions Terminated
Following a request of the state corporation Deposit Insurance
Agency for an early termination of its functions of the
provisional administration of Kaluga Gas and Energy Joint-Stock
Bank Gazenergobank, the Bank of Russia took a decision (Order No.
OD-411, dated February 8, 2016) to terminate from February 12,
2016, the functions of the provisional administration of
Gazenergobank the state corporation Deposit Insurance Agency
performs under Bank of Russia Order No. OD-2078, dated
August 12, 2015, "On Appointing the State Corporation Deposit
Insurance Agency to Perform the Functions of the Provisional
Administration of the Kaluga-Based Kaluga Gas and Energy Joint-
Stock Bank Gazenergobank (Open Joint-Stock Company),

JUST BANK: Bank of Russia Halts Provisional Administration
The Bank of Russia took a decision to terminate from February 3,
2016, the activity of the provisional administration of Just Bank
LLC.  The decision was made via Order No. OD-332, dated February
3, 2016.

The Bank of Russia entered the decision due to the ruling of the
Arbitration Court of the city of Moscow, Case No. A40-226060/15-
36-92B), dated January 22, 2016, on finding Just Bank insolvent
and ordering the appointment of a liquidator.

Previously, on November 2, 2015, by Order No. OD-2982, the Bank of
Russia appointed provisional administration to manage Just Bank
LLC and revoked the bank's license.

POLYUS GOLD: Fitch Downgrades LT Issuer Default Ratings to 'BB-'
Fitch Ratings has downgraded Polyus Gold International's (PGIL)
and PJSC Polyus Gold's (PJSC Polyus) Long-term Issuer Default
Ratings (IDRs) to 'BB-' from 'BBB-', removed them from Rating
Watch Negative (RWN) and assigned a Negative Outlook.

The downgrades follow completion of the cash offer with regard to
PGIL by a combination of Sacturino Limited and Wandle Holding -
companies that are ultimate controlled by the Suleyman Kerimov
Foundation and Said Kerimov. Following the cash offer, PGIL has
been delisted from the London Stock Exchange and its Board of
Directors dissolved. Fitch believes that the future corporate
governance profile of the group will be weaker and that future
credit metrics will be materially weaker than those historically
recorded by the company.

Fitch has assumed that proceeds from a recent US$2.5 billion
seven-year loan attracted by PJSC Polyus are planned to be
upstreamed to the shareholder level by way of a share buyback
programme or dividend payment. In total we assume payments
totalling US$2.5 billion or higher will be upstreamed to the
shareholder level in 2016 to likely repay acquisition debt
incurred at this level. Assuming payments at this level we do not
anticipate that the company will exceed its net debt/EBITDA
covenant of 3.5x included in bond and loan documentation.

The Negative Outlook primarily reflects the risk that the level of
cash upstreamed will be higher than currently assumed and/or
business performance will be lower than we currently forecast.


Corporate Governance

Fitch had previously assessed PGIL/PJSC Polyus' corporate
governance profile as strong compared with other Russian
corporates. This in part reflected relationship agreements, signed
between the company and its shareholders, which contributed to the
independence of the company's board and reduced the potential for
shareholder actions to negatively impact the company's financial
profile and/or the position of creditors. Accordingly its ratings
were notched down one notch from their standalone level, compared
with the more usual two notches for Russian companies.

Following the cash offer with regard to PGIL its Board of
Directors has been dissolved and the company delisted. It is
intended PJSC Polyus will become a listed entity in Moscow with
appropriate independent director representation on its Board.
Notwithstanding these plans we believe that overall corporate
governance will be weaker than historically and have widened the
notching for corporate governance to two notches, in line with
other major Russian corporates.

Material Increase in Leverage

If, as expected, PGIL/PJSC Polyus upstreams in excess of
US$2.5 billion of funds to the shareholder level in 2016, credit
metrics will materially weaken. Under our base case, Fitch expects
funds from operations (FFO) gross leverage to exceed 5.0x in 2016
and FFO net leverage approaching 4.0. Net debt/EBITDAR is expected
to exceed 3.0x in 2016 compared with historical levels below 1.0x.
With negative free cash flow expected in both 2016 and 2017,
absolute debt levels will remain elevated until 2018 when expected
production increases will start to have a positive impact on
metrics (free cash flow (FCF) is post dividends and assumes a 30%
payout ratio). For 2018, Fitch's base case expectation is for FFO
gross leverage below 4.0x and FFO net leverage approaching 3.0x.

Competitive Cost Position

Operationally PGIL/PJSC Polyus remains a strong group with good
quality gold reserves and large efficient open pit assets which
place it in the first quartile of the global cost curve (total
cash costs (TCC)). In 1H15, TCC declined to $US 436/oz -- a 34%
decline year-on year. This was driven by local currency (RUB)
devaluation as well as operational improvements which resulted in
higher processing volumes and better recovery rates.

Strong Production Results

The group reported 4% year-on year production growth in 2015 to
1,763k oz of metal. This exceeded the upper end of the group's
guidance range of 1,630k oz-1,710k oz set at the beginning of the
year. The majority of the company's mines delivered higher
processing volumes and better recoveries. The company's guidance
for 2016 is 1,760k oz-1,800k oz.

Natalka Development Project

The Natalka project is the group's key development mine. A
technical review of the project is expected to be finalized in
1Q16, with a ramp up of construction expected in spring 2016, and
production to start in late 2017. Based upon expected production
volumes, Natalka is expected to contribute to an approximate 15%-
20% year-on year increase in group gold production in 2018. As
well as Natalka, the group intends to concentrate on streamlining
and capacity improvement at key operational projects in order to
attain annual production growth in the medium term.


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

-- US$2.5 billion or higher cash upstreaming in 2016 by way of
    share buybacks and/or one-off dividend payment.

-- Average gold price of US$1,050/oz in 2016 and US$1,000
    afterwards (realised prices adjusted to reflect gold price
    hedging entered into by the company).

-- Marginally negative FCF (post-dividends) in 2016/2017,
    returning to positive FCF generation in 2018 of approximately
    US$100 million. FCF forecasts assume a consistent 30%
    dividend payout ratio.

-- US$/RUB exchange rate of 65 across 2016-2018.

-- Natalka project to commence in 2H17.


Negative: Future developments that could lead to negative rating
action include:

-- Higher than expected dividend payments or other shareholder
    distributions over 2016-2018 leading to weaker liquidity and
    sustained high leverage metrics.

-- FFO gross leverage expected to be sustained above 4.0x by the
    end of FYE2018.

-- Failure to return to positive FCF generation by 2018 as
    expected under our base rating case

Positive: Future developments that could lead to positive rating
action include:
For Outlook stabilization
-- FFO gross leverage below 3.5x.
-- Sustained positive FCF generation.


Polyus Gold's liquidity position is strong with $US 2 billion of
cash and $US 0.6 billion of undrawn committed bank facilities as
of end-2015, compared with only $US 38m of short-term borrowings.


Polyus Gold International Limited

  Foreign currency Long-term IDR: downgraded to 'BB-' from 'BBB-';
  removed from RWN; Outlook Negative

  Foreign currency Short-term IDR: downgraded to 'B' from 'F3';
  removed from RWN

  Foreign currency senior unsecured rating: downgraded to 'BB-'
  from 'BBB-'; removed from RWN

PJSC Polyus Gold

  Foreign currency Long-term IDR: downgraded to 'BB-' from 'BBB-;
  removed from RWN; Outlook Negative

  Local currency senior unsecured rating: downgraded to 'B+ (RR5)'
  from 'BBB- (RR4)'; removed from RWN

SOLIDARNOST BANK: DIA's Administration Functions Terminated
The Bank of Russia, under Order No. OD-412 dated February 8, 2016,
has terminated as of February 11, 2016, the functions of Deposit
Insurance Agency (DIA) as provisional administrator of Bank

The Bank of Russia entered the order as per the request of DIA of
an early termination of its role as administrator for Solidarnost.

DIA was appointed as provisional administrator of Solidarnost by
the Bank of Russia on August 12, 2015.

SVYAZNOY BANK: Bank of Russia Halts Provisional Administration
The Bank of Russia, under Order No. OD-333 dated February 3, 2016,
terminated as of February 4, 2016 the activity of the provisional
administration of Svyaznoy Bank JSC.

The decision was entered due to the of the Arbitration court of
the city of Moscow (case No. A40-231488/15-36-104B), dated January
22, 2016, on finding Svyaznoy Bank insolvent and ordering the
appointment of a liquidator.

Previously, on November 24, 2015, the Bank of Russia, by Order No.
OD-3291, ordered the provisional administration of Svyaznoy Bank
and revoked the bank's license.

VITYAZ LTD: Bank of Russia Ends Provisional Administration
The Bank of Russia, by virtue of Order No. OD-425 dated February
8, 2016, terminated as February 9, 2016, the activity of the
provisional administration of COMMERCIAL BANK VITYAZ LTD.

The Bank of Russia made the decision due to the ruling of the
Court of Arbitration of the city of Moscow dated January 20, 2016,
with regard to case No. A40-226041/15-88-422 "B" on recognizing
that Vityaz is insolvent and ordering the appointment of a

Previously, on November 16, 2015, the Bank of Russia, by Order No.
OD-3185, appointed the provisional administration of VITYAZ LTD.
following the revocation of the bank's license.

U N I T E D   K I N G D O M

CYBG PLC: S&P Assigns 'B' Rating to Newly Issued AT1 Instruments
Standard & Poor's Ratings Services affirmed its 'BBB+/A-2'
counterparty credit ratings on U.K.-based Clydesdale Bank PLC and
its 'BBB/A-3' ratings on non-operating holding company (NOHC) CYB
Investments Limited (CYBI).  S&P removed these ratings from
CreditWatch with negative implications, where they had been placed
in May 2015.  S&P then withdrew its ratings on CYBI, at the
issuer's request.

At the same time, S&P assigned its 'BBB-/A-3' ratings to
Clydesdale's new NOHC, CYBG PLC, and assigned 'B' issue ratings to
CYBG's newly issued additional Tier 1 (AT1) and 'BB' issue ratings
to CYBG's newly issued nondeferrable Tier 2 instruments.

The affirmation of S&P's ratings on Clydesdale reflects S&P's view
that its financial and risk profiles (and consequently S&P's view
of its 'bbb+' group credit profile [GCP]) will continue to be
underpinned by post-transaction support agreements with National
Australia Bank (NAB).  S&P understands that NAB has agreed to
provide an indemnity and contingent capital facility of up to
GBP1.7 billion. The facility is effective retroactively, as of
NAB's transaction announcement in May 2015, and GBP1.2 billion
remains unutilized.  It is part of a perpetual conduct risk
mitigation package to cover potential future legacy conduct costs
not covered by Clydesdale's existing unutilized provisions.

In S&P's view, this indemnity package with NAB significantly
reduces downside risks to the bank's capital position arising from
future legacy conduct charges, which had previously been a key
rating concern.  Although S&P considers Clydesdale to be largely
stand-alone from an operational perspective, S&P thinks the
transitional service agreements that NAB will provide over an
interim period mitigate Clydesdale's operational risks after the
demerger.  Accordingly, S&P is maintaining its positive notch of
adjustment to reflect that the transitional arrangements provided
by NAB will support Clydesdale's creditworthiness over S&P's 18-24
month ratings horizon.

"Our ratings analysis currently assumes that Clydesdale will not
be subject to a well-defined resolution process in case of
nonviability.  The Bank of England's December 2015 consultation on
the minimum requirement for own funds and eligible liabilities
(MREL) indicated that banks with balance sheets of GBP15 billion
or more could be subject to a bail-in process in a resolution.  If
the final MREL regime is similar to the consultation document on
this point, it may make Clydesdale eligible for a rating uplift
under our additional loss-absorbing capacity (ALAC) criteria.  We
consider that this is likely enough to occur that we incorporate
it into our analysis as the other key factor supporting the
positive notch of adjustment.  At the end of September 2015, we
estimated that Clydesdale was close to our 5% threshold for one
notch of ALAC uplift," S&P said.

The ratings on Clydesdale were placed on CreditWatch with negative
implications in May 2015, pending execution of the proposed IPO
and demerger transaction from NAB.  Clydesdale's U.K.-based NOHC
CYBG is the demerger vehicle and listing entity.  It commenced
normal trading on the London Stock Exchange on Feb. 8, 2016.  S&P
understands that the demerger from NAB was implemented on the same
day and that CYBG shares were transferred to NAB shareholders.

Following the demerger, CYBG will over time become Clydesdale's
immediate parent.  As an NOHC, CYBG consolidates Clydesdale, which
represents over 99% of its total assets.  S&P calculated double
leverage at end-2015 at about 101%.  S&P expects CYBG's principal
income streams to be dividends and interest income on debt issued
by Clydesdale.  S&P anticipates that the NOHC will downstream
issued debt and equity capital to its operating subsidiaries and
that, over time, it will become a key vehicle for the group's
issuance of long-term instruments designed to absorb losses,
whether on a going-concern or non-viability basis, in line with
other U.K. banks.

S&P does not assign a group status to the NOHC, as S&P would for
an operating subsidiary.  Rather, the starting point for the
issuer credit rating on the NOHC is based on Clydesdale's
unsupported GCP (that is, excluding the positive notch of
adjustment), which S&P assess at 'bbb'. Although our ratings on
CYBG are based on S&P's view of Clydesdale's intrinsic
creditworthiness, they are constrained by the structural
subordination of the U.K. NOHC's creditors.  This explains the
one-notch differential between the unsupported GCP of the
operating bank and the long-term rating on the NOHC.  The ratings
on CYBG and Clydesdale do not benefit from extraordinary support
from the U.K. government.

At the same time as demerging from NAB, CYBG issued GBP450 million
of 8% fixed-rate reset perpetual subordinated contingent
convertible (AT1) notes and GBP475 million 5% fixed-rate reset
callable subordinated Tier 2 notes.  S&P is assigning its 'B'
long-term issue rating to the AT1 securities and its 'BB' issue
rating to the Tier 2 notes.  The ratings are subject to S&P's
review of the notes' final documentation.

In accordance with S&P's January 2015 criteria for rating hybrid
capital instruments, the issue ratings reflect S&P's analysis of
the proposed instruments and its assessment of Clydesdale's
unsupported GCP.

The 'BB' issue rating stands three notches below the 'bbb'
unsupported GCP of Clydesdale, reflecting one notch for
subordination, one notch for being issued out of the NOHC, and one
notch to reflect S&P's view that the regulatory framework creates
the equivalent of a mandatory contingent capital clause leading to
common equity conversion and/or a principal write-down.

The 'B' issue rating stands six notches below the unsupported GCP
of Clydesdale and reflects these:

   -- One notch for subordination.
   -- Two notches for nonpayment risk and its regulatory Tier 1
   -- One notch to reflect the issue's mandatory contingent
      capital clause leading to common equity conversion and
      principal write-down.
   -- One notch for distance to the 7% regulatory, going-concern
      contingent trigger above 300 basis points.
   -- One final notch reflecting structural subordination as a
      holding company issue.

S&P expects to assign intermediate equity content to the AT1
securities under S&P's criteria.  This reflects S&P's view that
they can absorb losses on a going-concern basis through
discretionary coupon cancellation, they are perpetual, and there
is no coupon step-up.

The stable outlook on Clydesdale reflects S&P's view that its
operating performance and business stability will perform in line
with S&P's expectations within the coming 18-24 months.

S&P could lower the rating on Clydesdale if S&P observed that:

   -- The bank's operating performance and risk appetite deviated
      materially from current management expectations,
   -- There were potential conduct issues not covered by the
      mitigation package, which weighed on profitability, or
   -- Risks related to the operational separation from NAB were
      not being managed adequately.  An upgrade is not likely at
      this stage.

The stable outlook on CYBG mirrors that on Clydesdale.

DECO 6-UK: Fitch Lowers Rating on Class A2 Notes to 'Csf'
Fitch Ratings has downgraded DECO 6 - UK Large Loan 2 Plc's class
A2 notes due 2017 and affirmed the others, as follows:

  GBP29.4 million class A2 (XS0235683223) downgraded to 'Csf'
  from 'CCsf'; Recovery Estimate (RE) 10%

  GBP34.4 million class B (XS0235683736) affirmed at 'Csf'; RE 0%

  GBP39.3 million class C (XS0235684114) affirmed to 'Csf'; RE 0%

  GBP24.1 million class D (XS0235684544) affirmed at 'Csf'; RE 0%

DECO 6 - UK Large Loan 2 plc was originally the securitization of
four commercial loans originated by Deutsche Bank AG
(A/Stable/F1), which closed in December 2005. Two of the loans
have since repaid in full and one resolved (pending a significant
loss allocation to the class C and D). The remaining loan is
secured on two UK office buildings.


The downgrade of the class A2 notes reflects the inevitability of
loss. The affirmation of the more junior tranches at 'Csf'
reflects the unchanged expectation of a full write-down.

Since the last rating action in February 2015, the Brunel Shopping
Centre has been sold and recovery amounts of GBP65 million paid to
the senior notes. Barring any late recoveries, the remaining loan
balance of GBP34.4 million will be written off, with the recovery
rate in line with Fitch's expectations.

The only remaining loan, the GBP92.8 million Mapeley loan, entered
special servicing in 2011 as the result of an uncured interest
coverage ratio breach and was accelerated in 2012. Since then, 18
of the 20 properties have been sold. A significant drop in
property values driven by rising vacancy and weak demand for
tertiary properties has caused the LTV to rise over time, reaching
over 1,900% in January. The remaining two offices located in
Edinburgh and Northampton are likely to be sold in time for bond
maturity in July 2017, with net proceeds being applied against
senior note principal. Fitch estimates around 10% of the current
GBP29.4 million balance will be recovered, with the remaining
notes being written down.

Fitch estimates 'Bsf' recoveries of approximately GBP3m.


All tranches will be downgraded to 'Dsf' once the inevitable
losses from Brunel Shopping Centre and Mapeley have been
determined and allocated to the notes.


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


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

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.

DIALOG SEMICONDUCTOR: S&P Withdraws Preliminary 'BB' CCR
Standard & Poor's Ratings Services withdrew its preliminary 'BB'
long-term corporate credit rating on U.K.-based semiconductor
provider Dialog Semiconductor PLC (Dialog) at the issuer's
request.  At the time of the withdrawal, the outlook was stable.

S&P also withdrew its preliminary 'BB' issue ratings and '3'
recovery ratings on Dialog's proposed senior secured loans.

On Jan. 14, 2016, Dialog announced that its board of directors had
decided not to revise its proposal to acquire U.S.-based
semiconductor provider Atmel Corp.  As a result, S&P is
withdrawing the preliminary 'BB' long-term corporate credit and
issue ratings that it assigned on Nov. 30, 2015, at the issuer's

HUMBERSIDE MOTOR: Shuts Down Business Following Administration
Clare Burnett at reports that The Humberside
Motor Group, which owns dealerships in Hull and Grimsby, has
ceased trading.

Joint administrators Philip Pierce --
-- and Russell Cash -- -- partners
at business advisory group FRP Advisory, were appointed on Jan.
19, relates.

The Infiniti Hull and Renault Grimsby car dealerships under the
Humberside Motor banner have been closed,

Administrators made redundancies among the 23 staff, relays.

According to, owner of the family-run
business, Terry Smith, told the Grimsby Telegraph: ""We built this
business up from scratch.  But losing Saab in 2012 was the major
blow. At the time we were one of the top four dealers in the
country, year after year. It's been a struggle since then."


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

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

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


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

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

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