TCREUR_Public/160309.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, March 9, 2016, Vol. 17, No. 048



HETA ASSET: Creditor Lock-Up May Violate Competition Law
SLAV HANDEL: Files for Insolvency in Vienna Court


PETROCELTIC INT'L: Applies for Suspension of Share Trading


ASTALDI SPA: Fitch Affirms 'B+' Long-Term IDR, Outlook Stable
CLARIS FINANCE 2006: S&P Lowers Rating on Class B Notes to B


* KAZAKHSTAN: Uses Retirement Savings to Prop Up Banks


BITE UAB: S&P Affirms 'B' CCR Then Withdraws Rating


PORTUCEL SA: Moody's Raises CFR to Ba2, Outlook Stable


ASTRA ASIGURARI: Dan Adamescu Put Under Probe Over Bankruptcy




T-2: Back Into Bankruptcy After Creditors Win Appeal


AYT CGH CCM I: Fitch Affirms 'CCsf' Rating on Class D Notes
CAJAMAR EMPRESAS 5: Fitch Hikes Class B Notes Rating to 'BBsf'
FTPYME TDA CAM 2: Fitch Hikes Class 3SA Notes Rating to 'Bsf'

U N I T E D   K I N G D O M

AUSTINS: In Liquidation, 53 Jobs Affected
BEALES DEP'T: Plans to Enter Into CVA, March 24 Meeting Set
BRITISH HOME: Seeks to Offload GBP571MM Pension Deficit
ICBC STANDARD: Moody's Affirms Ba1 Subordinated Debt Rating
JOHNSTON PRESS: Moody's Lowers CFR to Caa1, Outlook Stable

VEDANTA RESOURCES: Moody's Lowers CFR to B2, Outlook Negative



HETA ASSET: Creditor Lock-Up May Violate Competition Law
Alexander Weber at Bloomberg News reports that Austrian Finance
Minister Hans Joerg Schelling told "hard-line" creditors of bad
bank Heta Asset Resolution AG they may violate competition law if
they continue to prevent other creditors from accepting a
discounted tender offer for EUR10.8 billion (US$11.9 billion) of
Heta's debt.

Mr. Schelling said he received feedback from creditors willing to
accept the province of Carinthia's offer for Heta's debt after the
federal government topped it up with a premium last week,
Bloomberg relates.  He said there wouldn't be another offer
improvement and he would be "out of the picture" after the offer
deadline expires March 11, Bloomberg relays.

"There are some hard-liners who're digging in their heels, while
others want to do it," Mr. Schelling, as cited by Bloomberg, said.
"This lock-up procedure is questionable in terms of competition

Carinthia is offering Heta creditors 75% of face value for senior
debt, and 30% for junior debt to neutralize guarantees it gave for
the bank, Bloomberg discloses.  Mr. Schelling last week sweetened
the offer with an 18-year zero-coupon bond priced below market
rates, Bloomberg recounts.

According to Bloomberg, creditors representing more than EUR5
billion of the debt, including Commerzbank AG, Pacific Investment
Management Co. and Dexia SA's German unit, have teamed up to
reject the offer.

Mr. Schelling said he's ready to meet representatives for the
creditor groups for more talks in order to persuade opponents of
the deal, Bloomberg relates.

Creditors have until Friday, March 11, to tender their holdings,
Bloomberg notes.  If the offer fails, action will shift back to
the FMA supervisor, which is in charge of Heta's wind-down under
Austria's bank resolution law, Bloomberg states.  Mr. Schelling
said it has until the end of May to impose a haircut on Heta's
debt, which may lead to bigger losses for creditors, Bloomberg

Heta Asset Resolution AG is a wind-down company owned by the
Republic of Austria.  Its statutory task is to dispose of the non-
performing portion of Hypo Alpe Adria, nationalized in 2009, as
effectively as possible while preserving value.

SLAV HANDEL: Files for Insolvency in Vienna Court
Boris Groendahl at Bloomberg News reports that creditor
association KSV1870 said in e-mailed statement Slav Handel,
Vertretung und Beteiligung AG has filed for insolvency at Vienna's
Commercial Court.

According to Bloomberg, the company has EUR111 million in

Slav Handel, Vertretung Und Beteiligung AG, through its
subsidiaries, manufactures and sells electricity generated by wind


PETROCELTIC INT'L: Applies for Suspension of Share Trading
Charlie Taylor at The Irish Times reports that Petroceltic on
March 7 applied for its shares to be temporarily suspended from
trading in Dublin and London until the wrangling over its future
is resolved.

According to The Irish Times, the move follows a petition to
appoint an examiner to Petroceltic by dissident shareholder
Worldview, which has a 29% stake in the explorer.

Worldview on March 4 brought the High Court petition aimed at
securing court protection for Petroceltic, which owes about US$230
million to its banks and is currently unable to make its
repayments, The Irish Times relates.

The matter has been adjourned until April 4, The Irish Times

While the court did not appoint an interim examiner pending the
hearing of the petition, it did grant the full protection of the
examinership process to Petroceltic, The Irish Times notes.

Petroceltic International is a Dublin-based oil and gas explorer.


ASTALDI SPA: Fitch Affirms 'B+' Long-Term IDR, Outlook Stable
Fitch Ratings has affirmed Italian construction company Astaldi
S.p.A.'s Long-term Issuer Default (IDR) and senior unsecured
ratings at 'B+'/Recovery Rating 4' (RR4). The Outlook is Stable.

The rating reflects Astaldi's positive operating performance and a
robust backlog providing revenue visibility for around three
years, but also the company's lack of deleveraging progress,
following no material disposals in the past year and given growing
investments into concessions to over EUR150 million.


High Margin Constructor

Astaldi has a solid track record in delivering complex works.
Leading technical skills allow the company to bid for highly
profitable jobs, positioning Astaldi among the few companies in
the sector with double-digit EBITDA margin. On the other hand, the
profitability of some projects could be offset by an increase in
execution risk and more volatile working capital dynamics,
especially in higher-risk markets. Fitch highlights that in
Venezuela the outstanding amount of payables to be collected is
still around EUR280m (as of end-September 2015).

Project Concentration

With the top 10 projects accounting for around 60% of the
construction backlog, Astaldi's concentration risk is one of the
highest among peers. However, all its main projects are on time
for delivery with the largest ones in an advanced stage of
completion. Also, healthy order inflows in 2015 of more than EUR6
billion should partially mitigate this risk.

Maturing Concessions Reduce Equity Needs

Many projects in the company's portfolio are now entering a more
mature phase. Fitch expects for the coming years lower equity
injections into concessions, as Astaldi has made the bulk of its
investments in the last few years. In the absence of material
cash-in from its asset recycling strategy, any large investment
could be detrimental for the rating.

Asset Disposal Plan Delayed

In late 2014, the company unveiled a divestment plan for its
concessions portfolio in its effort to deleverage rapidly. The
plan was to sell off the concession through a special purpose
vehicle, or by disposing each investment in a one-to-one
transaction. In the past year no major transactions have occurred
though, and the expected deleveraging has slowed. Today's
negotiations with Abertis are in an advanced stage for the sale of
Astaldi's most liquid asset (A4 motorway, valued around EUR120m)
with exclusivity granted until the end of March.

Healthy Liquidity

Liquidity amounted to around EUR780 million at end-3Q15,
comprising EUR464 million in reported cash and EUR320 million in
undrawn committed credit facilities expiring in 2019. This
provides ample headroom to cover working capital swings during the
year and EUR100 million in short-term debt maturing over the next
12 months.


Fitch's key assumptions within the rating case for Astaldi

-- Projects profitability aligned with historical trends

-- Stable dividends pay-out

-- Limited equity injections into maturing projects

-- No material assets disposal over the next four years


Positive: Developments that may, individually or collectively,
lead to positive rating actions:

-- Evidence of successful implementation of asset rotation
    strategy leading to gross recourse debt reduction

-- Material improvement in working capital dynamics

-- Fitch-adjusted net leverage, including factoring, below 3.5x
    on a sustained basis

-- Improved geographic mix with an increased exposure towards
    lower-risk markets, construction contracts with advanced
    payments and reduced order backlog concentration

Negative: Developments that may, individually or collectively,
lead to negative rating actions:

-- Evidence of material losses on construction projects

-- Fitch-adjusted net leverage, including factoring, above 4.5x
    on a sustained basis

-- Worsening of working capital position

CLARIS FINANCE 2006: S&P Lowers Rating on Class B Notes to B
Standard & Poor's Ratings Services lowered to 'B (sf)' from
'B+ (sf)' its credit rating on Claris Finance 2006 S.r.l.'s class
B notes.  S&P's ratings on the class A1 and A2 notes remain
unaffected by the rating action.

On March 1, 2016, S&P lowered to 'B' from 'B+' its long-term
issuer credit rating (ICR) on Veneto Banca SCPA, the liquidity
guarantee provider in Claris Finance 2006.

According to the transaction documents, the liquidity guarantee
covers the timely payment of interest and the ultimate payment of
principal.  Under S&P's current counterparty criteria, its rating
on the class B notes is weak-linked to its long-term ICR on Veneto
Banca.  Therefore, as any change to S&P's long-term ICR on Veneto
Banca would result in an equivalent change to S&P's rating on
Claris Finance 2006's class B notes, S&P has lowered to 'B (sf)'
from 'B+ (sf)' its rating on the class B notes.

S&P's ratings on the class A1 and A2 notes are unaffected by the
rating action because these ratings are delinked from S&P's long-
term ICR on the liquidity guarantee provider.

Claris Finance 2006 is an Italian residential mortgage-backed
securities (RMBS) transaction, backed by a pool of mortgage loans
secured over residential and commercial properties in Italy.  The
transaction closed in July 2006 and its revolving period ended in
March 2010.


* KAZAKHSTAN: Uses Retirement Savings to Prop Up Banks
Nariman Gizitdinov and Lyubov Pronina at Bloomberg News report
that when Kazakhstan's biggest lender, Kazkommertsbank JSC, had
its credit downgraded closer to levels that ratings firms reserve
for borrowers in default, state managers of US$17 billion of
retirement savings were undeterred.

Rather than scale back investments in bank bonds and deposits,
already at 34%, the government cleared the way for KZT200 billion
(US$576 million) more to be put into Kazakh lenders, Bloomberg

According to Bloomberg, others question the investment case for
speculative-grade banks that enjoy ties to political elite in the
largest oil producer among former Soviet satellites.

"They are suffering badly from losing income from oil, and because
it's a small circle of people, they do whatever they want,"
Bloomberg quotes Anders Aslund, senior fellow at the Atlantic
Council in Washington, who served as an economic adviser to the
Russian government from 1991 to 1994, as saying.  "Kazakhstan has
big reserves.  I think that it's just the beginning, and they will
tap into the funds more and more as oil price stays at the same


BITE UAB: S&P Affirms 'B' CCR Then Withdraws Rating
Standard & Poor's Ratings Services affirmed its 'B' long-term
corporate credit ratings on Lithuania-based mobile
telecommunications operator UAB Bite Lietuva and its 100%-owner
Bite Finance International B.V.  S&P subsequently withdrew the
ratings at the issuer's request.  At the time of withdrawal, the
outlook was positive.

S&P also withdrew its 'B' issue rating on the EUR200 million
senior secured notes issued by Bite Finance, which have been

The rating affirmation reflects S&P's view that there will be no
change in the business or financial risk profile after the
acquisition of Bite by Providence from Mid-Europa in early 2016.
S&P's business risk assessment remains supported by Bite's stable
market share and growing mobile data revenues, and S&P's
expectation of a supportive economic environment in Lithuania and
Latvia.  S&P's assessment of Bite's business risk profile remains
constrained by intense competition from the local subsidiaries of
two large Nordic operators, TeliaSonera AB and Tele2 AB.

S&P's assessment of Bite's financial risk profile reflects S&P's
view of the company's limited but improving free operating cash
flow (FOCF) generation.  S&P also forecasts that the company's
adjusted debt to EBITDA will be below 4.0x over the next two
years.  S&P applies a one-notch negative adjustment, based on its
comparable ratings analysis.  This takes into account continuing
operating pressures, volatile economies, and the company's modest

The ratings withdrawal follows the acquisition of Bite by
Providence on Feb. 15, 2016, and subsequent redemption in full on
March 1, 2016, of the EUR200 million senior secured notes and
EUR30 million revolving credit facility on change of control.


PORTUCEL SA: Moody's Raises CFR to Ba2, Outlook Stable
Moody's Investors Service has upgraded the Corporate Family Rating
of Portucel S.A. to Ba2 from Ba3 and the Probability of Default
Rating to Ba2-PD from Ba3-PD.  Concurrently, the instrument
ratings of the senior unsecured notes issued by Portucel were
upgraded to Ba2 (LGD4) from Ba3 (LGD4).  The outlook is stable.

"We have upgraded the CFR because of the Portucel's track record
of consistently strong performance through periods of price
volatility and structural demand decline in uncoated fine paper
while maintaining a conservative financial profile throughout",
says Matthias Volkmer, a Moody's Senior Analyst and lead analyst
for Portucel.  "Importantly, we understand that following rising
dividend demands in recent years, majority shareholder Semapa
intends to substantially decrease its dividend requirements in
support of Portucel's new strategic and capital-intensive projects
in tissue, pellets and forestry, which will help to gradually
diversify the business profile in the coming years", Volkmer

                         RATINGS RATIONALE

The Ba2 CFR balances Portucel's solid business profile, healthy
capital structure and strong free cash generation ability on a
stand-alone basis.  However, during 2015 Portucel made substantial
dividend payments in amount of EUR440 million, which was credit
negative, but helped majority shareholder Semapa (who reduced its
equity stake in Portucel to 64.8% from 75.9% in 2015) reduce the
holding's net debt by -27% to EUR673 million in 2015 down from
EUR918 million in 2014.  Moody's understands that the investment
holding endeavors to further de-leverage over the next few years
while reducing required dividend payments from Portucel to a more
sustainable level.  Notwithstanding, in its analysis of Portucel's
financial strength, Moody's continues to consider the net debt
position owed by Semapa Holding, that would lead to a leverage
ratio of app. 3.6x (down from 5.3x as per FY 2014).

More fundamentally, the rating is supported by (i) Portucel's
well-invested and cost efficient asset base (ii) its full
integration into pulp and energy; (iii) a long-standing track
record of stable and - despite structural weakening since 2010 -
comparatively high profitability with adjusted EBITDA margins
consistently above 20% historically, which is evidence of the
efficiency of Portucel's asset base given the difficult market
conditions for paper producers in Europe; (iv) the positive
prospects of Portucel's diversification strategy into tissue and

On a more negative note, the rating is constrained by (i) the
inherent volatility of the industry with paper demand having
proven to be highly cyclical and closely linked to overall
macroeconomic conditions as well as the overall declining paper
markets in Europe, (ii) the fairly small scale as indicated by
sales of EUR 1.6 billion during 2015 as well as limited geographic
diversification with operations predominantly based in Portugal
yet with over 40% of sales generated outside Western Europe ;
(iii) the highly focused product portfolio with uncoated fine
paper production generating over 75% of group sales, and (iv)
expected marginal FCF generation driven by growth capital
expenditures going forward in combination with gradually reducing
dividend payments as Semapa deleverages over time.


The stable outlook reflects Moody's expectation that Portucel will
maintain solid credit protection measures for its rating as
indicated by debt/EBITDA (as defined by Moody's) remaining below
2.5x times (1.9x per December 2015) excluding the holding debt at
Semapa.  The stable outlook also takes into account the high
likelihood of a moderate deterioration in leverage metrics in the
next two years, driven by Portucel's investment program in
combination with continued dividend pay outs as well as some
expected pressure on profit margins.


Portucel's operations have been very cash generative yet following
dividend payments in an amount of 440million during 2015,
Portucel's previously sizeable cash position diminished to
EUR73 mil. as per end of December 2015 (down from EUR499 million
as per end of December 2014).  Notwithstanding, we regard
Portucel's liquidity profile as good with primary funding sources
with expected funds from operations of around EUR300million for
2016, a cash position of EUR 73 million as of December 2015 and
access to approximately EUR 125 million currently unused
commercial paper programs, due in 2020.  Various of Portucel's
facility agreements contain conditionality language, including
financial covenants, under which Portucel currently has solid
headroom.  Cash uses during 2016 largely relate to ongoing high
capex due to sizeable growth investments and reduced but still
substantial dividend payments, seasonal swings as well as
structural build up in working capital.


Less likely in the intermediate term but following further
evidence of Semapa's deleveraging and thus less reliance on
Portucel's cash generation ability, a higher rating would require
Portucel maintaining its financial profile while improving its
portfolio diversification including successful execution of its
pursued strategic projects as well as maintaining a diversified
long-term funding profile with continued access to international
capital markets.


Downward rating pressure could result from a deterioration in
earnings and cash flow including a more permanent increase in
leverage to above 2.5x debt/EBITDA and a declining EBITDA margin
towards the mid-teens.  Moreover, a financial policy favoring
shareholders over creditors including high shareholder returns,
large debt funded acquisitions or investments and failure to
return to a debt/ EBITDA ratio to 2.5x or below, could lead to a
negative rating action.

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

Portucel, S.A. (to be renamed in April, following the recent
rebranding of Portucel Soporcel Group into THE NAVIGATOR COMPANY),
based in Lisbon (Portugal), is a leading producer of premium and
branded office paper, market pulp as well as operations in energy
and tissue with revenues generated in 2015 of EUR1.6 billion.  The
group employs more than 2,400 employees at two integrated paper
mills, a pulp mill and its recently acquired tissue operations in
Portugal, its pellet mill project in South Carolina (USA) and its
forestry project in Mozambique.  Portucel is listed on the Lisbon
stock exchange and its market capitalization as of December 2015
amounted to EUR 2.76 billion.  Majority shareholder Semapa, an
investment holding company, is holding 64.8% of shares.


ASTRA ASIGURARI: Dan Adamescu Put Under Probe Over Bankruptcy
Romania Insider reports that Romanian businessman Dan Adamescu,
one of Romania's richest, is under investigation for the way he
managed his insurance company, Astra Asigurari, which went
bankrupt last year.

The prosecutors consider Mr. Adamescu responsible for the EUR180
million damages taken by Astra, Romania Insider says.  According
to Romania Insider, he has to pay a RON40 million (almost EUR9
million) bail in ten days to stay out of jail during the

Romania's National Anticorruption Directorate questioned Dan
Adamescu for several hours on Monday, March 7, and informed him of
the new charges, Romania Insider relates.

The Bucharest Court of Appeal sentenced Adamescu to 4 years and 4
months in jail in February 2015, Romania Insider discloses.  The
decision is not final, Romania Insider notes.

On March 7, 2016, the prosecutors officially charged Mr. Adamescu
with abuse of office, money laundering, and complicity to abuse of
office by public officials, Romania Insider relays.

The prosecutors said between 2011 and 2013, Mr. Adamescu made
several bad decisions for Astra Asigurari, using the company's
cash reserves for other purposes than its legal activity, Romania
Insider relates.  He also covered his actions by issuing distorted
reports that prevented the insurance sector's regulator to
properly assess and supervise Astra's activity and to protect the
company's clients, Romania Insider discloses.  Due to his actions,
Astra went under special administration in early 2014 and was
declared bankrupt in 2015.  The company took a RON 795 million
(EUR 180 million) damage, Romania Insider recounts, citing DNA.

Astra Asigurari is a Romanian insurance company.


Fitch Ratings has affirmed Public Joint Stock Company Aeroflot-
Russian Airlines' Long-term foreign currency Issuer Default Rating
(IDR) at 'B+' and removed it from Rating Watch Negative (RWN). The
Outlook is Stable.

The rating affirmation and removal of RWN reflect the improvement
of Aeroflot's credit metrics in 2015, which Fitch expects to be
sustained over 2016-2019. The rating action also reflects Fitch's
forecast of positive free cash flow (FCF) generation over 2016-
2019 and Aeroflot's limited involvement in Transaero as opposed to
the previously planned but subsequently cancelled acquisition. The
Stable Outlook incorporates the balance of risks between financial
and Russian air travel market pressures and the company's fairly
strong business profile and adaptability to challenging market

Aeroflot's business profile is supported by the company's fairly
diversified route network, favorable hub position, competitive
cost structure and its strong market position on the domestic

The 'B+' rating incorporates a single-notch uplift for state


Financials Drive RWN Removal

Aeroflot demonstrated significant improvement in its financial
performance in 2015, supported by lower oil prices, a rise in
passenger traffic, especially on domestic routes, a material
increase in yields in rouble terms and a reorganization of the
charter business.

Funds from operations (FFO) adjusted gross leverage dropped to
5.7x in 2015 from 7.5x in 2014 and FFO fixed change cover
increased to 2x in 2015 from 1.8x in 2014. Fitch expects the
positive momentum to continue over 2016-2019, due to expected low
oil prices, heathy growth in passenger traffic on the new routes
obtained from Transaero and yield recovery, albeit at a more
measured pace than in 2015.

Fitch forecast FFO adjusted gross leverage to slightly exceed 6x
in 2016-2017 before falling below this level by 2018, remaining
within Fitch's negative rating guideline, and FFO adjusted net
leverage of around 5.5x on average over 2016-2019. We expect FFO
fixed charge cover to remain above 1.5x over 2016-2019. We
forecast FCF to remain positive over 2016-2019.

Limited Involvement in Transaero

Following the cancellation of Aeroflot's acquisition of Transaero
at end-2015, we assess the financial impact of Aeroflot's
involvement in Transaero's operations in 2015 to be manageable and
expect it to be largely neutral in the short-to medium-term.
Aeroflot spent RUB17 billion over September-December 2015 for
transportation of Transaero's passengers both on its own and
Transaero's flights.

After Transaero's bankruptcy at end-2015, Aeroflot obtained slots
for 56 routes out of 141 international routes previously serviced
by Transaero, including new routes to European and Asian markets
and Kazakhstan. This should strengthen Aeroflot's market position
on international destinations. Its market share increased to 37%
in 2015 from 31% in 2014. As Transaero's slots will require
additional aircraft capacity and workforce, Aeroflot plans to take
up to 34 aircraft from Transaero, comprising 15 new planes from
the order book and 19 planes previously operated by Transaero. In
addition, Aeroflot considers employing around 6,000 of Transaero's
employees. The routes from Transaero will be operated by both
Aeroflot and its subsidiary JSC Rossiya Airlines and most of the
staff will be employed by Rossiya Airlines.

Yields Remain under Pressure

As Fitch expected, yields in dollar terms fell 25% yoy in 2015,
reflecting the full effect of the rouble depreciation. The largest
decline was on the domestic and European destinations while Asian
and Middle Eastern routes fared better. Fitch expects the yields
in dollar terms to remain under pressure in 2016-2017 due to a
weak Russian economy, falling fuel surcharge due to low oil
prices, an increasing share of domestic traffic and expected
further rouble depreciation in 2016. Fitch forecast a gradual
recovery from 2018.

High FX Exposure

Almost all of Aeroflot's debt (90% at end-2015) is denominated in
USD, as a large portion of its debt (71% at end-2015) represents
finance leases for aircraft purchases. In contrast only 38.5% of
its revenue in 2015 was earned in USD or EUR. While an additional
32% of revenue was linked to EUR, ticket prices were set in RUB
and their increase remained significantly short of mitigating the
impact of the rouble deprecation. In addition, over 50% of
operating costs are denominated in USD or EUR, further
contributing to the currency mismatch and, consequently, weaker

Strong Passenger Traffic Growth

We expect Aeroflot to deliver a healthy revenue-passenger-
kilometers (RPK) growth over 2016-2019 supported by the new slots
obtained from Transaero and organic capacity expansion. As a
result, we forecast growth across all destinations, especially on
the domestic, Asian and European routes. RPK increased 8.4% yoy in
2015. Although Aeroflot's international RPK fell 3.9% yoy, it was
much lower than the 17% decline for the Russian market (based on
passenger numbers). Growth on domestic routes was strong with an
RPK increase of 27.8% yoy.

Diversified Network and Well-Developed Hub

Aeroflot's business profile is commensurate with the 'BB' rating
category, due to a fairly diversified route network, high
frequency of international flights, a favorable hub position and
the company's position as Russia's largest airline and flagship
carrier and a medium-sized airline among European peers.

The implementation of a multi-brand strategy within Aeroflot Group
in co-operation with regional subsidiaries provides the group with
greater operational flexibility without diluting Aeroflot's brand
and enables the group to target multiple customer and geographic
segments, adapt more quickly to customer demands and utilize
feeder traffic from regional airline subsidiaries.

Rating Uplift for State Support

Aeroflot's rating of 'B+' continues to incorporate a single-notch
uplift to its standalone 'B' rating for state support. Fitch
considers the strategic, operational and, to a lesser extent,
legal ties between Aeroflot and its parent, the Russian Federation
(51.2% direct ownership and 8.4% indirect ownership) as fairly
strong under the agency's parent and subsidiary rating linkage

There are no formal legal ties, such as guarantees or cross
default provisions, but Aeroflot remains on the list of Russia's
strategic enterprises. Its operational and financial strategies
are overseen by the government and it is viewed as a means of
promoting and developing Russia's aviation market. To date, there
has been little evidence of tangible financial support, except for

A reduction of the state's stake to below 50% coupled with
evidence of diminishing state support, may lead to the withdrawal
of the one-notch uplift for state support. Although the government
has resumed discussions of Aeroflot's privatization, this is
unlikely to lead to state ownership falling below 50% in the short
term due to a change-of-control clause in the company's debt


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

-- Russian GDP decline of 2.5% in 2016 and growth of 1.2% in
-- Capex in line with the company's forecast
-- RPK growth of 9% CAGR over 2015-2019
-- Decline of yields in dollar terms in 2016-2017 and a slow
    recovery from 2018


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

-- Evidence of stronger state support.
-- Improvement of the financial profile (eg FFO adjusted gross
    leverage below 5.0x and FFO fixed charge cover above 1.5x on
    a sustained basis) due to yield recovery, successful
    integration of the received slots, personnel and fleet
    assets, moderation of investments in the fleet and/or a drop
    in fuel prices.

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

-- Further material deterioration of the credit metrics (eg FFO
    adjusted gross leverage well above 6.0x and FFO fixed charge
    cover below 1.25x on a sustained basis) due to further rouble
    depreciation, a protracted downturn in the Russian economy,
    drop in yields or overly ambitious fleet expansion.
-- Weakening of state support.


Adequate Liquidity

Fitch views Aeroflot's liquidity as adequate. Its cash of RUB36.6
billion and available credit lines of RUB37 billion were
sufficient to cover short-term debt obligations of RUB73.6 billion
at end-2015. The company's debt repayment schedule is generally
well-balanced, except for a spike in 2016. The company has RUB5
billion domestic bonds falling due in 2016. Fitch expects Aeroflot
to generate positive FCF over 2016-2019 despite sizeable capex
(including finance leases). Eighteen per cent of Aeroflot's cash
position at end-2015 was held in USD and EUR and most of the cash
was held at Sberbank (BBB-/Negative).

Senior Unsecured Rating

Although the company's prior-ranking debt is above Fitch's
threshold of 2x-2.5x of EBITDA, our recovery analysis resulting in
a Recovery Rating of 'RR4' supports the senior unsecured rating at
the same level as Long-term IDR.


  Long-term foreign and local currency IDR: affirmed at 'B+', off
  RWN; Outlook Stable

  National Long-term rating: affirmed at 'A-(rus)', off RWN;
  Outlook Stable

  Short-term foreign and local currency IDR: affirmed at 'B'

  National Short-term rating: affirmed at 'F2(rus)', off RWN

  Foreign and local currency senior unsecured ratings: affirmed at
  'B+/RR4', off RWN

  National senior unsecured rating: affirmed at 'A-(rus)', off RWN


T-2: Back Into Bankruptcy After Creditors Win Appeal
TeleGeography reports that T-2 has been forced back into
bankruptcy after creditors won an appeal against an earlier ruling
which had allowed the telco to exit receivership.

The High Court in Ljubljana upheld the appeal by DUTB, Banka Celje
and TCK, criticizing T-2 for failing to follow its restructuring
plan, TeleGeography relays, citing a report from

T-2 is a Slovenian alternative mobile, fixed line and broadband


AYT CGH CCM I: Fitch Affirms 'CCsf' Rating on Class D Notes
Fitch Ratings has affirmed 17 tranches and upgraded one tranche of
five AyT RMBS transactions. The Outlook on one tranche has been
revised to Stable from Negative.

The transactions are part of a series of RMBS transactions that
are serviced by Kutxabank, S.A. (Kutxabank; BBB/Positive/F3) for
AyT Hipotecario BBK I and AyT Hipotecario BBK II, Banco de
Castilla La Mancha S.A. (BB/Stable/B) for AyT CGH CCM I; Abanca
Corporacion Bancaria, S.A. (BB+/Stable/B) for AyT CGH Caixa
Galicia II and Liberbank, S.A. (BB/Stable/B) for AyT CGH Caja
Cantabria I.


Stable Credit Enhancement (CE)

The notes in AyT CGH CCM I, AyT Caja Cantabria I and AyT
Hipotecario BBKI and BBKII are currently paying sequentially. As
delinquencies are above the trigger levels a switch to pro-rata is
not expected in the near future. Fitch considers the existing and
projected CE sufficient to support the ratings, as reflected in
the affirmations and the revision of the Outlook on one tranche to
Stable from Negative.

AyT CGH Caixa Galicia II may change to pro-rata amortisation in
the next 12 to 18 months as the reserve fund is close to its
target level and arrears are decreasing and could soon fall below
the 1.25% trigger level. Given the high level of CE available to
the senior notes Fitch considers the notes can now sustain higher
rating stresses, as reflected in the upgrade.

Stable Arrears Performance

With the exception of AyT CGH CCM 1, as of the latest reporting
periods three-months plus arrears (excluding defaults) as a
percentage of the current pool balance are decreasing and range
from 0.5% (BBK II as of October 2015) to 2.2% (Caixa Galicia II as
of October 2015) compared with 0.8% (BBK I as of October 2015) to
2.3% (Caja Cantabria I as of September 2015). These numbers remain
comparable with Fitch's prime index of three-months plus arrears
(excluding defaults) of 1.1%.

AyT CGH CCM 1 has seen increasing arrears over the past 12 months
from 1.6% (November 2014) to 3.0% (November 2015). Fitch notes
this may lead to further defaults and increasing pressure in the
reserve fund and has revised down the Recovery Estimates on the
class C and D notes.

With the exception of AyT CGH CCM I, cumulative defaults, defined
as mortgages in arrears by more than 18 months, are currently
below the average for the sector of 5.3%. Fitch believes that this
difference can be attributed to the high proportion of self-
employed borrowers at origination on AyT CGH CCM I.

Reserve Fund Draws

AyT Hipotecario BBK I and BBK II are the only transactions to
feature a fully funded reserve fund. AyT CGH Caixa Galicia II is
close to its target at 99%. The reserve fund for AyT CGH CCM I was
almost fully depleted on May 2011, but a steady default pace and
high levels of excess spread has allowed continued replenishments
since then. As of end-November 2015, the reserve stood at 63% of
its target amount, up from 35% in November 2014. Given the stable
performance of AyT Galicia II, Fitch believes further
replenishments will take place on the next payment dates. In
contrast, given the increasing arrears on AyT CGH CCM I Fitch
cannot rule out that replenishments to the reserve fund will stop
in future.

As of September 2015, AyT Caja Cantabria I's reserve fund is down
to 45.4% from 67.8% 12 months ago. Given the increasing trend in
defaults, Fitch believes further draws will take place on the next
payment dates.

Payment Interruption Risk

AyT CGH CCM I and AyT Caja Cantabria I have a dynamic cash reserve
sized to cover six months of interest on tranche A and senior
fees. However, while Fitch considers this cash reserve plus the
below target reserve fund balance sufficient to mitigate payment
interruption risk, Fitch notes that if further draws continue to
take place this liquidity may be insufficient, which could lead to
negative rating action.

In contrast, AyT CGH Caixa Galicia II and both BBK deals have
sufficient liquidity to cover payments due to relevant
counterparties, in case of default of the servicer and the
collection account bank.

Commingling Exposure

Fitch believes the transactions have commingling loss exposure as
there is no certainty regarding the timely cessation of further
payments into the commingled accounts and in the case of AyT CGH
Caixa Galicia II due to the concentration of payments on one day
of the month. The agency has captured this additional stress in
its analysis and found the current CE is sufficient to mitigate
the risk.

Maturity Extensions

Based on information provided by the servicers, Fitch found that
some borrowers in all transactions have been offered maturity
extensions to their loans. Fitch considers this signals a weaker
borrower profile and has increased the foreclosure frequency for
these loans. The agency found the current CE is sufficient to
mitigate the risk.


A worsening of the Spanish macroeconomic environment, especially
employment conditions, or an abrupt shift of interest rates could
jeopardise the underlying borrowers' affordability.

The ratings are also sensitive to changes to Spain's Country
Ceiling (AA+) and, consequently, changes to the highest achievable
rating of Spanish structured finance notes (AA+sf).


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
pools and the transactions. 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 pools ahead of the transactions' initial
closing. The subsequent performance of the transactions 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.

The rating actions are as follows:

AyT CGH Caixa Galicia II:
Class A notes (ISIN ES0312273404): upgraded to 'AA+sf' from 'AA-
sf'; Outlook Stable
Class B notes (ISIN ES0312273412): affirmed at 'Asf'; Outlook
Class C notes (ISIN ES0312273420): affirmed at 'BB-sf'; Outlook
Class D notes (ISIN ES0312273438): affirmed at 'Bsf'; Outlook

Class A notes (ISIN ES0312273248): affirmed at 'A-sf'; Outlook
Class B notes (ISIN ES0312273255): affirmed at 'BBsf'; Outlook
Class C notes (ISIN ES0312273263): affirmed at 'CCCsf'; Recovery
Estimate (RE) revised to 80% from 95%
Class D notes (ISIN ES0312273271): affirmed at 'CCsf'; RE revised
to0% from 5%

AyT Hipotecario BBK I:
Class A notes (ISIN ES0312364005): affirmed at 'AA+sf'; Outlook
Class B notes (ISIN ES0312364013): affirmed at 'Asf'; Outlook
Class C notes (ISIN ES0312364021): affirmed at 'BBsf'; Outlook

AyT Hipotecario BBK II:
Class A notes (ISIN ES0312251004): affirmed at 'AA+sf'; Outlook
Class B notes (ISIN ES0312251012): affirmed at 'Asf'; Outlook
Class C notes (ISIN ES0312251020): affirmed at 'BBsf'; Outlook

AyT CGH Caja Cantabria I
Class A notes (ISIN ES0312273446): affirmed at 'A+sf'; Outlook
Class B notes (ISIN ES0312273453): affirmed at 'BBB+sf'; Outlook
Class C notes (ISIN ES0312273461): affirmed at 'Bsf'; Outlook
revised to Stable from Negative
Class D notes (ISIN ES0312273479): affirmed at 'CCCsf'; Recovery
Estimate revised to 80% from 85%

CAJAMAR EMPRESAS 5: Fitch Hikes Class B Notes Rating to 'BBsf'
Fitch Ratings has upgraded IM Cajamar Empresas 5, FTA's class B
notes and affirmed the class A1 and A2 notes, as follows:

EUR27.9 million class A1: affirmed at 'A+sf'; Outlook Stable
EUR148.3 million class A2: affirmed at 'A+sf'; Outlook Stable
EUR135.0 million class B: upgraded to 'BBsf' from 'Bsf'; Outlook

IM Cajamar Empresas 5 is a granular cash flow securitization of a
static portfolio of secured and unsecured loans granted to Spanish
small- and medium-sized enterprises by Cajamar Caja Rural and Caja
Rural del Mediteraneo (both now part of Cajamar Caja Rural,
Sociedad Cooperative).


Delinquencies Higher but Still Moderate

Arrears have risen slightly over the last 12 months but remain at
moderate levels. The share of loans more than 90 days past due
currently stands at 2.2%, up from 0.9% 12 months ago. Fitch has
determined an annual average transaction benchmark probability of
default of 3.6%.

Continued Deleveraging

The pari-passu class A1 and A2 notes received EUR114.8m of
principal proceeds over the last 12 months. The deleveraging of
the transaction has led to a significant increase in credit
enhancement for all rated notes, which is reflected in the upgrade
of the class B notes.

Counterparty Risk Rating Cap

The class A1 and A2 notes' rating is capped at 'A+sf' due to the
treasury account bank rating triggers in the transaction
documentation. These triggers are set at a minimum rating
requirement of 'BBB+'/'F2' for the account bank Banco Santander

Reserve Fund Release

The transaction features a non-amortizing EUR114.8 million reserve
fund used exclusively to cover any interest shortfalls on the most
senior class of notes during the life of the transaction. Any
remaining balance can be used to amortize the notes on the last
payment date. Fitch expects the last payment date to occur when
the balance of the reserve fund, together with the available
proceeds from the portfolio, is sufficient to repay the class B


A 25% increase in the obligor default probability would lead to a
downgrade of up to two notches for the notes.

A 25% reduction in expected recovery rates would to a downgrade of
up to one notch for 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.

Prior to the transaction closing, Fitch reviewed the results of a
third party assessment conducted on the asset portfolio
information, which indicated no adverse findings material to the
rating analysis.

Prior to the transaction closing, Fitch conducted a review of a
small targeted sample of Cajamar's origination files and found the
information contained in the reviewed files to be adequately
consistent with the originator's policies and practices and the
other information provided to the agency about the asset

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.

FTPYME TDA CAM 2: Fitch Hikes Class 3SA Notes Rating to 'Bsf'
Fitch Ratings has upgraded FTPYME TDA CAM 2, FTA's class 3SA notes
and affirmed the class 2SA notes, as follows:

  EUR15.9 million Class 2SA: affirmed at 'A+sf'; Outlook Stable

  EUR7.7 million Class 3SA: upgraded to 'Bsf' from 'CCCsf';
  Outlook Stable

FTPYME TDA CAM 2, F.T.A. is a granular cash flow securitization of
a static portfolio of secured and unsecured loans granted to
Spanish small- and medium-sized enterprises by Caja de Ahorros del
Mediterraneo (now part of Banco de Sabadell).


Low, Stable Delinquencies

Arrears have remained at low levels over the last 12 months. The
share of loans more than 90 days past due currently stands at 0.3%
of the portfolio, little changed from 0.2% in January 2015. The
minimal arrears, along with steady recovery proceeds, have allowed
excess spread to replenish the reserve fund (RF), which now stands
at EUR3.2 million compared with EUR1.8 million 12 months ago.
Fitch has determined an annual average transaction benchmark
probability of default of 4.5%.

Continued Deleveraging

The class 2SA notes received EUR10.8 million of principal proceeds
since January 2015. The deleveraging of the transaction has led to
a significant increase in credit enhancement the class 2SA and 3SA
notes. The upgrade of the class 3SA notes is driven by the credit
enhancement of the notes more than doubling.

Liquidity Risks

Fitch considers that the current RF balance adequately mitigates
payment interruption risk due to a default of servicer Banco de
Sabadell. However, given rising levels of obligor concentration in
the portfolio, adverse performance of few large obligors may
deplete the RF and prevent the timely payment of interest on the
class 2SA notes. These liquidity risks currently prevent an
upgrade of the class 2SA notes.

The largest obligor represents 3.9% of the performing portfolio,
up from 2.8% one year ago.


A 25% increase in the obligor default probability or a 25%
reduction in expected recovery rates have no rating impact on the


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 did not undertake a review of the information provided about
the underlying asset pools 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.

U N I T E D   K I N G D O M

AUSTINS: In Liquidation, 53 Jobs Affected
BBC News reports that one of Europe's oldest department stores,
Austins, in the centre of Londonderry, has gone into liquidation.

About 53 workers were told at a meeting on March 8 that they had
lost their jobs, BBC discloses.

According to BBC, workers are due to meet the liquidators during
the week to organize redundancy payments.

In November 2014, the building was sold to the City Hotel Group,
BBC recounts.  The receiver then sold the trading side of the
business, BBC relays.

Austins was established in Derry in 1830 by Thomas Austin.

BEALES DEP'T: Plans to Enter Into CVA, March 24 Meeting Set
Western Gazette reports that the Beales Department Store group
will ask landlords of loss-making stores to reduce rent or take
premises back.

The department store chain announced its plans to enter into a
Company Voluntary Arrangement (CVA) on March 7, Western Gazette

In Beales' case, the proposal only affects the landlords of stores
that are, or are likely to be, loss-making and Beales will invite
the landlords of those premises to "restructure" their leases,
Western Gazette discloses.

According to Western Gazette, the business has said that the
decision has been made to ensure its "long term viability".  The
company added that its relationship with suppliers and
concessionaires will not be affected, Western Gazette notes.

Panther Securities plc, the landlord of twelve Beales stores, has
agreed to support the CVA proposals, Western Gazette relays.  The
buying group Associated Independent Stores, Beales' largest
supplier, has also agreed to support them, Western Gazette states.

Meetings of shareholders and stakeholders will be called on
Thursday, March 24, to approve the proposals, Western Gazette

Beales is based in Yeovil.

BRITISH HOME: Seeks to Offload GBP571MM Pension Deficit
Mark Vandevelde, Josephine Cumbo and Judith Evans at The Financial
Times report that British Home Stores, the department store chain
sold by Sir Philip Green for GBP1, is seeking to offload a pension
deficit worth GBP571 million, about 10% larger than it was three
years ago.

The cost of paying an insurance company to assume obligations for
future and current pensioners has increased by about GBP57 million
since 2012, according to a proposal sent to BHS creditors seen by
the FT.

BHS has demanded a rescue deal from landlords that would cut its
rent payment on some stores by as much as three-quarters and give
it a right to walk away from the least profitable branches, the FT
relates.  It is also in talks to offload its pension liabilities
to a government-backed rescue fund, to which Sir Philip has
reportedly offered to contribute GBP80 million, the FT discloses.

According to the FT, the difference between assets and liabilities
recorded on the pension fund's balance sheet was GBP233 million in
2012.  But on a "buyout" basis, which covers the overheads and
profits that an insurance company would seek to recoup, the
liabilities were estimated to exceed the fund's assets by GBP514
million at the last valuation in 2012, the FT notes.

As part of that valuation, BHS's pension scheme trustees and the
company agreed to a scheduled plan for contribution payments to
plug the deficit; the company was to pay about GBP9.5 million a
year into the pension from 2013 until 2036 -- or for 23 years, the
FT recounts.

BHS executives believe that the removal of the pension
liabilities, as well as deep cuts to the retailer's rent bill, are
essential for the company to survive, the FT says.

British Home Stores is a British department store chain.

ICBC STANDARD: Moody's Affirms Ba1 Subordinated Debt Rating
Moody's Investors Service affirmed the long-term deposit and
issuer ratings of ICBC Standard Bank Plc (ICBC SB) at Baa3 and the
subordinated debt rating at Ba1 and changed the outlook on the
ratings to negative from stable.

The action follows the change of outlook on the bank's parent,
Industrial & Commercial Bank of China Ltd (ICBC, A1 Negative,
baa2), deposit rating to negative from stable.  The negative
outlook reflects Moody's expectation that ICBC SB's long-term
deposit and issuer ratings could move down in line with the
deposit rating of its parent.

                         RATINGS RATIONALE


Moody's affirmation of ICBC SB's long-term deposit and issuer
ratings at Baa3 and subordinated debt rating at Ba1 reflects the
high level of support from its Chinese parent.  This support
expectation reflects the completion of ICBC's acquisition of a 60%
stake in ICBC SB from Standard Bank Group (SBG, Baa3, Negative) in
February 2015 and ICBC's strong statement of support and ultimate
rebranding of the business to ICBC Standard Bank Plc.

The ratings incorporate ongoing support from ICBC in terms of
liquidity, capital and the agency's expectation of an increasingly
shared client base as ICBC channels the global markets trading
needs of its Chinese multinational client base, as well as that of
its global subsidiaries, through ICBC SB.  Under most
circumstances, Moody's believes that ICBC would be highly likely
to provide support to ICBC SB.


The negative outlook on ICBC SB's ratings is aligned with the
outlook on ICBC's rating and reflects Moody's expectation that
ICBC SB's ratings could move down in line with the long-term
deposit rating of its parent.


Developments that could potentially move the ratings upwards
include: (i) realization of increased trading activity, which
leads to improvements in the amount and stability of earnings and
of organic capital generation; (ii) a more stable, self-funded
business; and (iii) further integration with the parent.

Potential developments that could lead to a downgrade include: (i)
an increase in risk appetite such that the trading business
generates undue losses; (ii) limited success in achieving a level
of global markets trading activity in line with ICBC SB's cost
base; and (iii) a downgrade or reduced support from the parent,
ICBC.  While Moody's expects costs associated with the firm's
history of restructuring and transaction related losses to
decline, the cost base is expected to increase as ICBC SB re-
establishes the necessary infrastructure, control functions and
processes to enable it to operate on a standalone basis from SBG,
its previous parent.


Outlook Actions:

Issuer: ICBC Standard Bank Plc
  Outlook, Changed To Negative From Stable


Issuer: ICBC Standard Bank Plc
  Issuer Rating, Affirmed Baa3, outlook changed to Negative from
  Short Term Deposit Rating, Affirmed P-3
  Senior Unsecured Medium-Term Note Program, Affirmed (P)Baa3
  Subordinate Regular Bond/Debenture, Affirmed Ba1, outlook
   changed to Negative from Stable
  Long Term Deposit Rating, Affirmed Baa3, outlook changed to
   Negative from Stable


The methodologies used in these ratings were Banks published in
January 2016, and Global Securities Industry published in May

JOHNSTON PRESS: Moody's Lowers CFR to Caa1, Outlook Stable
Moody's Investors Service has downgraded the ratings of UK local
and regional media company Johnston Press plc, including its
Corporate Family Rating to Caa1 from B3, its Probability of
Default Rating to Caa1-PD from B3-PD, and the rating of the GBP225
million senior secured notes issued by its subsidiary, Johnston
Press Bond Plc to Caa1 from B3.  The outlook on all ratings is

"The downgrade of Johnston Press' ratings to Caa1 reflects the
ongoing structural shift in the industry toward digital formats
which is causing a persistent erosion of the company's print based
revenues.  The company has made some progress in expanding its
digital formats and has implemented cost actions to accommodate
the ongoing top line pressures.  Nevertheless, Moody's expects
that the industry trends will put ongoing negative pressure on the
company's operating performance", says Gunjan Dixit, a Moody's
Vice President and lead analyst for Johnston Press.

"The acquisition of UK national daily newspaper "i" will benefit
the company's operations as it brings a growing subscriber base
and is free cash flow generative.  However, the acquisition will
absorb GBP22 million of cash resources in 2016 and GBP2 million in
2017.  While Johnston Press has committed to sell certain non-core
print assets to help restore its liquidity, it could be difficult
for the company to execute asset sales at attractive prices in the
tough operating environment," adds Ms. Dixit.

                        RATINGS RATIONALE

The rating action reflects the accelerating decline in Johnston
Press' revenues, which the company has forecasted to decline by 7%
in 2015, after a 4.4% decline in 2014 according to its January
2016 trading update.  The steeper decline is driven by a sharp
fall in print revenues of 12% (compared to 9% in 2014) and slower
growth in digital revenues of 12% (compared to 20% in 2014).  Yet
at only 13% of the overall group revenues, Digital is still a
moderate contributor to the overall group.  Given the continued
pressures on print revenues against the backdrop of a
deteriorating industry environment, the rating agency expects that
Johnston Press' revenues will continue to decline over at least
the next 2-3 years, not considering the effect.

Nevertheless, management has up to now been efficient at
protecting the company's EBITDA margins after undergoing
significant restructurings from 2011 onwards.  Moody's expects
that Johnston Press will report a flat underlying EBITDA margin
for 2015 of around 23%.  However, in light of the ongoing top line
pressures, margin protection based on cost savings will become
difficult to achieve on a sustained basis.

The company's 2015 operational under-performance has led to a
significant erosion of the company's share price.  Consequently,
the equity cushion in the company's enterprise value is limited to
GBP47 million as of March 1, 2016.  Moody's expects that Johnston
Press' gross debt/EBITDA ratio (as adjusted by Moody's) will be
approximately 4.4x at end-2015.  This remains high for a business
suffering from sustained structural pressures, notwithstanding
some improvement in the ratio from a re-evaluation of Johnston
Press' IFRS19 pension deficit.

Moody's expects the company's reported net leverage to stand at
around 3.2x at end-2015.  In the absence of asset sales, the
rating agency does not expect Johnston Press to de-lever in 2016.
Consequently the financial leverage maintenance covenant headroom
stipulated under its available GBP25 million revolving credit
facility (currently undrawn) could also reduce (compared to a 15%
headroom at the 2015 year-end).

On Feb. 12, 2016, Johnston Press announced that it had reached an
agreement to acquire the "i" newspaper from the Independent Print
Limited (unrated; a UK based publishing business) for a total
consideration of GBP24 million.  The acquisition, which is
expected to close in April 2016, falls in line with the company's
strategy. However, in order to fund the acquisition, Johnston
Press will be using a significant portion of its available cash
resources (approximately GBP24 million).  While Moody's
acknowledges that the company plans to sell certain non-core
assets to restore is liquidity, the rating agency believes that
conducting asset sales at attractive prices will prove challenging
given the structural pressures affecting the print publishing

More positively, Moody's expects that the acquisition will help
Johnston Press in improving its audience reach, gain share of the
national advertising market while contributing to overall revenues
and EBITDA.  i's circulation revenues are growing strongly (+24%
in 2015) and the acquisition is likely to offer some potential for
growing digital revenues.  The acquisition will also provide some
scope for cost savings and revenue synergies.


The stable ratings outlook recognizes (1) the positive free cash
flow generation expected for 2015 and 2016, helped by lower
restructuring cash outflows and interest payment obligations
compared to 2014; (2) the reduction in the company's pension
deficit by some GBP53 million under IAS 19 from GBP90 million in
H1 2015; (3) the company's comfortable liquidity position, with an
undrawn revolving credit facility of GBP25 million; and (4)
management's past track record of generating cost efficiencies.


Downward pressure could be exerted on the company's ratings if (1)
the sustained weakness in operating performance were to become
more pronounced; (2) free cash flow generation were to turn
negative and/ or (3) the company's liquidity position deteriorates

Moody's does not anticipate any catalysts for an upgrade in the
near term, although upward pressure could be exerted on the
ratings once Johnston Press (1) is able to return back to steady
revenue and EBITDA growth; (2) sustains positive free cash flow
(as calculated by Moody's) generation on an ongoing basis; and (3)
maintains its gross debt to/EBITDA ratio (as adjusted by Moody's)
at below 4.5x on a sustained basis.

The principal methodology used in these ratings was Global
Publishing Industry published in December 2011.

Johnston Press plc is a leading UK multimedia company that
publishes 13 paid-for daily newspapers, including The Scotsman,
The Yorkshire Post and The News (Portsmouth), 154 paid for
weeklies, 37 free newspapers and a number of lifestyle magazines.

VEDANTA RESOURCES: Moody's Lowers CFR to B2, Outlook Negative
Moody's Investors Service has downgraded Vedanta Resources plc's
corporate family rating B2 from Ba2.

Moody's has also downgraded the company's senior unsecured rating
to Caa1 from B1.

The outlook on all ratings is negative.

                           RATINGS RATIONALE

"The downgrade of Vedanta's ratings is driven by the low commodity
price environment that will keep earnings improvement distant, and
a slower correction in leverage metrics than initially
anticipated," says Kaustubh Chaubal, a Moody's Vice President and
Senior Analyst.

The rating actions also incorporate the refinancing risk that the
company faces, in particular, in relation to its debt maturities
during the financial year ending March 2017 (FY2017).

The rating actions reflect Moody's view that there has been a
fundamental downward shift in the mining sector, with the downturn
being deeper and the recovery longer than Moody's had previously
expected, resulting in increased credit risk and weaker credit
metrics for Vedanta, as well as the global mining sector.
Consequently, ratings need to be recalibrated to reflect the
companies' expected performance over a more protracted challenging
operating environment.

Slowing economic growth rates in China materially impact the
demand for base metals and prices globally.  Even as the
Government of India's (Baa3 positive) move to raise duties on
imports of aluminum and zinc will raise selling prices in India,
the impact will be modest.

At the same time, the reduction in taxes on the production of oil
to 20% ad valorem ($6-$7 per barrel at current prices) from
INR4,500 per tonne ($9/barrel) will lower the cash cost of
production by some $2-$3/barrel.  However, the decline in oil
prices has been so sharp that the reduction in taxes on production
will have a muted impact on Vedanta's earnings.

Vedanta's B2 CFR also reflects refinancing risks associated with
its $2.67 billion debt maturities in FY2017.  The company's FY
2017 maturities include $1.9 billion due in the April -- July 2016
period and the balance $0.77 billion due in the remainder of the
year.  While the company has so far secured financing for a part
of these debt maturities, the absence of a completely executed
refinancing plan keeps near term liquidity risk imminent.

Moody's recognizes that on a consolidated basis Vedanta has large
cash balances of $8.9 billion although almost 90% of which is held
at its two listed subsidiaries Hindustan Zinc Ltd (unrated) and
Cairn India Ltd. (unrated).

Furthermore, Vedanta's weak operating performance will result in a
potential breach of some of its covenants in March 2016, requiring
it to request that its lenders provide waivers and relaxations.
While the company has confirmed that it has received lender
approvals for waivers for the next covenant testing date on March
31, 2016, and relaxations for the periods beyond that date, the
timely receipt of confirmations from its balance lenders is

The CFR also reflects Vedanta's exposure to volatile commodity
prices, which has led to a sharp decline in its earnings and a
deterioration in its financial profile.

The CFR incorporates Moody's expectation that the weak commodity
price environment will persist and delay any meaningful
improvement in Vedanta's credit metrics, at least over the next 12
months.  Absent any improvement in commodity prices beyond Moody's
expectations, equity issuance -- which management has ruled out --
an improvement in leverage will remain contingent on the company's
ability to continue to reduce costs and ramp up production.

Moody's estimates that Vedanta's leverage will be around 5.7x at
March 2016, up from 4.3x at March 2015, and Moody's estimate of
5.2x at Dec. 31, 2015.  Looking ahead, Moody's expects production
ramp ups, especially in aluminum in India and copper in Zambia,
and the company's cost reduction initiatives to drive leverage
correction towards 5.0x by March 2017, while remaining free cash
flow positive.

The negative outlook is based on Moody's view that commodity
prices will remain pressured by weakening global macroeconomic
growth, especially in China, and despite Vedanta's low cash cost
position, this will continue to pressure earnings and slower the
pace of leverage correction.  The negative outlook also
incorporates the refinancing risk with respect to the group's
FY2017 maturities and rising covenant pressure.

What Could Change the Rating -- Up

A ratings upgrade is unlikely over the next 12-18 months, given
that the ratings outlook is negative.

The ratings outlook could return to stable if commodity prices
recover, or if the company's profits recover close to previous
high levels through cost saving initiatives.

Metrics that could lead to a change in outlook to stable include
adjusted leverage below 4.5x, EBIT/interest above 2.0x, and cash
flow from operations (CFO) less dividends/adjusted debt above
12.5%, all on a sustained basis, while generating positive free
cash flow.

The timely completion of the merger of Vedanta Ltd. with CIL
followed by a substantial debt repayment would also be key for a
revision in the outlook to stable.

                 What Could Change the Rating - Down

Failure to complete the refinancing of its FY2017 maturities on a
timely basis or a delay in obtaining covenant waivers or
relaxations from its lenders would result in further downgrades.

Fundamentally Moody's could consider downgrading the ratings if:

(1) weak commodity prices persist, such that Vedanta's
     consolidated adjusted 12-month EBITDA drops below $3.5
     billion, despite its efforts to ramp up shipments;

(2) the company is unable to sustain and improve its cost-
     reduction initiatives, such that profitability weakens, with
     consolidated EBIT margins falling below 10% on a sustained
     basis; and/or

(3) its financial metrics fail to improve from their current weak

Credit metrics indicative of a downgrade include adjusted
debt/EBITDA in excess of 5.0x-5.5x, EBIT/interest coverage below
1.5x, or cash flow from operations less dividends/adjusted debt
below 12.5%.

An adverse ruling with respect to Cairn India Ltd's (CIL) disputed
$3.2 billion tax liability would also exert negative pressure on
the ratings.  CIL is an independent oil exploration and production
company in India, which is 59.9%-owned by Vedanta's subsidiary,
Vedanta Ltd (unrated).

The principal methodology used in these ratings was Global Mining
Industry published in August 2014.

Headquartered in London, Vedanta Resources plc is a diversified
resources company with interests mainly in India.  Its core
operations are held by Vedanta Ltd, a 62.9%-owned subsidiary which
produces zinc, lead, silver, aluminum, iron ore and power.

In December 2011, Vedanta acquired control of Cairn India Ltd
(CIL), an independent oil exploration and production company in
India.  CIL is a 59.9%-owned subsidiary of Vedanta Ltd.

On June 14, 2015, Vedanta Ltd announced the proposed merger of
Vedanta Ltd and CIL, in a cashless all stock transaction, subject
to approvals.  If the merger goes ahead as announced, Vedanta's
shareholding in Vedanta Ltd will fall to 50.1%.

Listed on the London Stock Exchange, Vedanta is 69.8% owned by
Volcan Investments Ltd.  For the year ended March 31, 2015,
Vedanta reported revenues of $12.9 billion and EBITDA of $3.7


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
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Information contained herein is obtained from sources believed to
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