TCREUR_Public/160318.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

           Friday, March 18, 2016, Vol. 17, No. 055



AUSTRIAN BANKS: VB-VERBUND: Fitch Affirms Issuer Default Ratings
SAPPI PAPIER: S&P Rates Proposed EUR350MM Sr. Sec. Notes 'BB-'


FAURECIA SA: Fitch Assigns BB- Rating to New EUR500MM Notes
PEUGEOT SA: Fitch Affirms 'BB' IDR & Revises Outlook to Positive


GREECE: Resumes Talks with Creditors, Seeks Debt Payment Holiday


F-E GOLD: Fitch Affirms BB- Rating to EUR3.6MM Class C Notes


ALGECO SCOTSMAN: S&P Puts 'B-' CCR on CreditWatch Developing
INTELSAT SA: Mulls Debt Exchange with Bondholders


CADOGAN SQUARE: S&P Raises Rating on Class E Notes to 'BB+'
NEW WORLD: S&P Lowers CCR to 'CCC-', Outlook Negative


1BANK PJSC: Placed Under Provisional Administration


ABENGOA SA: Lines Up Int'l Investors to Inject New Liquidity


VISTAJET GROUP: Fitch Puts 'B' IDR on Rating Watch Negative


ARCELIK AS: S&P Affirms 'BB+' CCR, Outlook Remains Stable

U N I T E D   K I N G D O M

GATE SME 2006-1: S&P Affirms BB+ Rating on Class A Notes
HAWICK KNITWEAR: Lyber 2016 to Acquire Business
JERROLD HOLDINGS: Fitch Affirms 'BB-' IDR, Outlook Stable
LINKSAIR: To Enter Into Liquidation, April 1 Meeting Set
MOTIVE TELEVISION: Statutory Moratorium to Expire Today


* BOOK REVIEW: Lost Prophets



AUSTRIAN BANKS: VB-VERBUND: Fitch Affirms Issuer Default Ratings
Fitch Ratings on March 16 affirmed the Long-term Issuer Default
Ratings of Erste Group Bank AG and UniCredit Bank Austria AG at
'BBB+' with Stable Outlooks and their Viability Ratings (VRs) at
'bbb+'. Volksbanken-Verbund's (VB-Verbund) Long-term IDR has been
affirmed at 'BB+' with a Positive Outlook and its VR at 'bb+'.
Fitch has also affirmed the Long-term IDRs of VB-Verbund's member
banks at 'BB+' with Positive Outlooks.

The rating actions follow Fitch's periodic review of the major
Austrian banks.  The affirmations reflect the Austrian banking
sector's generally solid operating environment and Erste and Bank
Austria's adequate flexibility to deal with recurring challenges
in heterogeneous CEE markets.  Bank Austria's ratings also
reflect Fitch's expectation that the announced transfer of its
CEE business to its parent UniCredit S.p.A. (UC; BBB+/Stable
/bbb+) will have neutral implications for its risk profile and
does not affect UC's high propensity to support its Austrian


Erste and VB-Verbund's IDRs are based on their standalone
profiles as reflected by their VRs.  Bank Austria's Long-term IDR
is equalized with UC's and at the same level as its VR.

Erste and Bank Austria's identical VRs reflect primarily
comparable business models and risk profiles resulting from
similar positioning in Austria and in diverse CEE markets,
although Bank Austria's CEE presence is currently broader.  The
VRs also reflect our view that both banks' flexibility to deal
with recurring but evolving challenges in CEE is adequate but not

Erste's ratings benefit from its strong and diversified franchise
in its core Austrian, Czech, Slovakian and Romanian markets,
overall adequate asset quality and solid capitalisation, funding
and liquidity.  Erste's profitability has been improving thanks
to loan impairment charges that are extremely low in Austria and
declining in CEE, but is still burdened by regulatory costs and
persistently low interest rates.

Bank Austria's VR factors in Fitch's expectation that the bank
will emerge from its restructuring that will transfer its CEE
subsidiaries to its parent UC with a significantly narrower, more
focused business model, but that the implications for its risk
profile are likely to be broadly neutral.  Bank Austria is likely
to become a purely domestic bank by end-2016, which will
considerably reduce its geographic diversification and business
scope.  However, Fitch expects the downsized bank to benefit from
its focus on domestic assets in light of the solid operating
environment in Austria, which is considerably more developed and
resilient than most CEE economies in which the bank has been
operating so far.

VB-Verbund's VR reflects the considerable risk reduction achieved
via the spin-off of its former central institution, immigon
portfolioabbau ag, which concentrated most of the group's
impaired legacy assets.  As a result, Fitch estimates that the
group's non-performing loan (NPL) ratio improved from almost 13%
at end-2013 to just below 5% at end-2015.  The group's member
banks are in the process of merging into eight regional and two
specialized banks by end-2017 from a total of 47 at mid-2015.
Fitch believes that the process is well-controlled, but the scope
of the ongoing restructuring gives rise to significant execution
risk in the short term.

The Positive Outlook on VB-Verbund's Long-term IDR reflects
Fitch's view that the process will significantly and sustainably
improve the group's efficiency.  Fitch also expects the
overhauled framework contract between the new central institution
and the member banks to strengthen the group's governance and the
cohesion among its members.

Fitch views the three large Austrian banks' NPL and reserve
coverage ratios as adequate and their volumes of non-impaired
forborne loans as moderate.  Asset quality still varies
considerably by country but has been generally converging over
the past year.

Erste's asset quality has improved rapidly over the past two
years, notably thanks to large NPL sales, but remains very weak
in Romania, Hungary and Croatia.  Its consolidated NPL ratio fell
to 7.1% at end-2015 from 9.6% at end-2013, due to intensive
workout and NPL sales, especially in Romania, and recovering loan
growth. Fitch believes that the risk of large NPL inflows has
fallen in Erste's main markets, although some uncertainties
remain in Romania.

The spin-off of Bank Austria's CEE business will strongly relieve
the bank's asset quality and Fitch expects its NPL ratio to
decrease to a mid-single digit level upon completion of the
transfer.  The CEE segment's NPL ratio was 11.8% at end-2015,
down from 12.4% yoy.  Across CEE the trends were mixed, with
clear negative developments in Russia, where we currently see the
biggest risk, Ukraine and Croatia.  In Austria, the NPL ratio
decreased to 5.1% at end-2015, and asset quality benefits from
the borrower-friendly environment.

VB-Verbund now operates almost exclusively in the robust Austrian
market and its loan book consists predominantly of lower-risk
retail and small SME clients.  Its asset quality remains
moderately weaker than that of large, highly rated European
cooperative banks.  However, its overhauled risk management
practices should enable gradual convergence with these peers.

Erste's profit contributions from the individual CEE markets were
far more balanced in 2015 than in previous years as Romania and
Hungary are stabilising, although these two markets still create
some uncertainty for medium-term profits.  The Czech unit's share
of group pre-tax profit declined accordingly despite the unit's
still strong performance in absolute terms.  Net profit from
Austria benefited from exceptionally low risk costs, which we
deem unsustainable through the cycle, but also from loan growth
and decreasing funding costs.

Fitch expects that Bank Austria's performance after the spin-off
of its CEE operations will be driven by its corporate business,
which in our view has been moderately profitable across the
cycle, and the low-margin retail operations in Austria.  This is
likely to result in less earnings volatility but also weaker
internal capital generation.  Bank Austria's CEE business is
currently suffering from a fairly modest (but still reasonable)
performance in Russia and one-off charges in various other CEE
countries.  The sale of its heavily loss-making Ukrainian
subsidiary announced in January 2016 is providing sizeable relief
ahead of the spin-off of the remainder of the CEE business.
However, CEE has historically contributed the majority of Bank
Austria's profits.

Fitch expects VB-Verbund's ongoing restructuring to result in
weak profitability in 2016.  Performance should recover to
sufficient but moderate levels in the longer term, given the
saturated Austrian market and the bank's efforts.

Cost pressure for all banks in the peer group is likely to remain
high in the medium term due to high recurring regulatory costs in
Austria (bank levies and contributions to the new resolution and
deposit protection funds), the risk of new harsher regulation for
banks in CEE countries and investment needs to adapt to the
changing regulatory and competitive landscapes.

The three banks' adequate risk-adjusted capitalization progressed
during 2015 and is broadly in line with general market
expectations for universal banks.  The high regulatory risk
weights, driven by Erste and Bank Austria's CEE assets and VB-
Verbund's use of the standardized approach, result in solid
leverage ratios.  However, their CEE portfolios expose Erste, and
particularly Bank Austria, to foreign exchange and RWA
volatility. This will be reduced significantly at Bank Austria
after the spin-off of the CEE portfolio.

Erste's internal capital generation turned positive in 2015 after
two negative years, allowing a strengthening of its phased-in
CET1 ratio to 12.3% at end-2015 from 10.6% yoy.  As a result, the
bank already fulfills its fully-loaded Pillar 2 requirements.
Fitch expects capitalization to improve gradually on the back of
resilient operating profit, adequate retained earnings supported
by modest growth, and manageable risk costs.

Bank Austria's phased-in CET1 ratio improved more moderately, to
11% at end-2015.  As CEE has historically contributed the
majority of Bank Austria's profits we expect weaker through the
cycle internal capital generation after the planned spin-off of
the CEE portfolio.

VB-Verbund's capitalization is acceptable but it will need the
cost savings from the primary banks' mergers to strengthen its
internal capital generation before it repays the EUR300 mil.
state capital of its former troubled central institution.

Erste and Bank Austria have strengthened their local deposit
franchises in CEE and maintain large unencumbered liquidity
buffers.  Their wholesale funding needs are limited.  Erste's
funding benefits strongly from its leading retail deposit
franchises in Austria, the Czech Republic and Slovakia.  In
addition, the three peers have large Austrian retail deposit
franchises, which are particularly resilient and not subject to
FX volatility.  Intragroup funding needs in Croatia and Romania
have declined substantially in recent years but remain material.

Fitch expects UC to maintain solid funding and liquidity and
comfortable capital buffers at Bank Austria as it is likely to
continue to issue in the markets.


Erste and VB-Verbund's Support Rating of '5' and Support Rating
Floor of 'No Floor' reflect Fitch's view that senior creditors
can no longer rely on full extraordinary state support.  This is
driven by the EU's Bank Recovery and Resolution Directive (BRRD),
which has been fully transposed, with its bail-in tool, into
Austrian law, effective from Jan. 1, 2015.

Bank Austria's Support Rating reflects Fitch's view that the
planned transfer of its CEE subsidiaries and its 41% stake in its
Turkish unit to UC, where the group's CEE activities will be
centralised, does not affect UC's high propensity to support its
Austrian subsidiary.


Erste and VB-Verbund's IDRs and Erste's senior debt ratings are
sensitive to the same factors as their VRs.  Bank Austria's IDRs
and senior debt ratings are equalized with UC's IDRs and are at
the same level as its VR.  Therefore, a downgrade of UC's Long-
term IDR would not immediately result in a downgrade of Bank
Austria's IDRs, unless Bank Austria's VR also changes.  An
upgrade of UC's Long-term IDR would result in an upgrade of Bank
Austria's IDRs.

Erste's VR could come under pressure if its earnings prospects or
asset quality deteriorate as a result of changes in market
conditions or adverse political actions in Romania, Hungary or
Croatia.  Conversely, an upgrade of its VR would require better
risk adjusted returns across CEE resulting from normalized
regulatory, political and risk costs leading to sustainably
higher profits in these three countries (even though their mid-
term contribution to group profits is likely to remain modest).
Continued efforts to further raise the Austrian savings banks'
cost efficiency will also be important to limit the downside risk
to Erste's capital generation, for which it largely relies on

Bank Austria's VR could come under pressure if UC targets a more
aggressive financial profile than we currently expect.  A
downgrade could also arise from a failure to address a
deterioration of the domestic retail business' performance.  Bank
Austria's VR is limited on the upside in light of the narrow
geographic diversification and increasingly wholesale focus of is
future business model. This is likely to constrain the VR within
the 'bbb' category, even if the bank significantly improves the
performance of its retail business.

The Positive Outlook on VB-Verbund's Long-term IDR reflects the
ongoing consolidation of its member banks and a high likelihood
that it will be upgraded, possibly by up to two notches, once the
execution risk of the consolidation plan has sufficiently
receded. Downside risk to the VR and IDRs could come from a
failure to achieve the necessary cost savings from the
restructuring or from a severe downturn in Austria's economy or
from the group's inability to repay the state capital as
scheduled, none of which we expect.


Any upgrade of Erste and VB-Verbund's Support Ratings and an
upward revision of their Support Rating Floors would be
contingent on a positive change in the sovereign's propensity to
provide support to the bank.  This is highly unlikely in light of
the new regulatory environment, in Fitch's view.

An upgrade of Bank Austria's Support Rating would be contingent
on an upgrade of UC's Long-Term IDR.  A downgrade could occur if
we perceived a decrease in UC's propensity to support, which we
deem highly unlikely in the foreseeable future.  A scenario in
which the downsized Bank Austria's role in the group becomes less
important could result in a downgrade of the Support Rating.

The rating actions are:

Erste Group Bank AG

  Long-term IDR: affirmed at 'BBB+'; Outlook Stable
  Short-term IDR: affirmed at 'F2'
  Viability Rating: affirmed at 'bbb+'
  Support Rating: affirmed at '5'
  Support Rating Floor: affirmed at 'No Floor'
  Senior unsecured notes: affirmed at 'BBB+'/'F2'
  Market-linked securities: affirmed at 'BBB+emr'
  Lower Tier 2 debt: affirmed at 'BBB'
  Erste Finance (Delaware) LLC: USD10bn CP programme guaranteed
  by Erste: affirmed at 'F2'

UniCredit Bank Austria AG

  Long-term IDR: affirmed at 'BBB+'; Outlook Stable
  Short-term IDR: affirmed at 'F2'
  Viability Rating: affirmed at 'bbb+'
  Support Rating: affirmed at '2'
  Senior unsecured notes: affirmed at 'BBB+'
  EMTN programme: affirmed at 'BBB+'/'F2'


  Long-term IDR: affirmed at 'BB+'; Outlook Positive
  Short-term IDR: affirmed at 'B'
  Viability Rating: affirmed at 'bb+'
  Support Rating: affirmed at '5'
  Support Rating Floor: affirmed at 'No Floor'

The IDRs of VB-Verbund's members listed below have been affirmed
at 'BB+'/Positive/ 'B' in line with VB-Verbund's IDRs and are
sensitive to the same drivers as VB-Verbund's IDRs:

start:bausparkasse e.Gen. Genossenschaft mit beschraenkter
Bank fuer Aerzte und Freie Berufe AG
Volksbank, Gewerbe- und Handelsbank Kaernten AG

Oesterreichische Apothekerbank eG
Volksbank Bad Goisern eingetragene Genossenschaft
Volksbank Bad Hall e.Gen.
Volksbank Eferding - Grieskirchen reg.Gen.m.b.H.
Volksbank Enns - St.Valentin eG
Volksbank Feldkirchen eG
Volksbank Kaernten Sued e.Gen.
Volksbank Kufstein-Kitzbuehel eG
Volksbank Landeck eG
Volksbank Marchfeld e.Gen.
Volksbank Niederoesterreich AG
Volksbank Niederoesterreich Sued eG
Volksbank Oberes Waldviertel reg.Gen.m.b.H.
Volksbank Oberkaernten reg.Gen.m.b.H.
Volksbank Oberndorf reg.Gen.m.b.H.
Volksbank Oberoesterreich AG
Volksbank Obersteiermark eGen
Volksbank Oetscherland eG
Volksbank Salzburg eG
Volksbank Steiermark Mitte AG
Volksbank Steirisches Salzkammergut reg.Gen.m.b.H.
Volksbank Suedburgenland eG
Volksbank Sued-Oststeiermark e.Gen.
Volksbank Tirol Innsbruck - Schwaz AG
Volksbank Voecklabruck-Gmunden e.Gen.
Volksbank Vorarlberg e. Gen.
Volksbank Weinviertel e.Gen.
Volksbank Wien AG
Waldviertler Volksbank Horn reg.Gen.m.b.H.

The IDRs of VB-Verbund's following member banks have been
affirmed at 'BB+'/Positive/'B' and withdrawn as a result of their
merger into other rated members of the group:

Volksbank Alpenvorland e.Gen.
Volksbank Donau-Weinland reg.Gen.m.b.H.
Volksbank Fels am Wagram e.Gen.
Volksbank Obersdorf - Wolkersdorf - Deutsch-Wagram e. Gen.
Volksbank Ost reg.Gen.m.b.H.
Volksbank Ried im Innkreis eG
Volksbank Schaerding, Altheim Braunau
Volksbank Tullnerfeld eG

SAPPI PAPIER: S&P Rates Proposed EUR350MM Sr. Sec. Notes 'BB-'
Standard & Poor's Ratings Services said that it had assigned its
'BB-' issue rating to the proposed EUR350 million senior secured
notes due 2023 to be issued by Austria-based Sappi Papier Holding
GmbH, an indirect holding company of South African paper producer
Sappi Ltd.

The issue rating is in line with the long-term corporate credit
rating on Sappi Ltd. (BB-/Positive/B).  The '3' recovery rating
reflects the significant amount of prior-ranking liabilities in
the structure, and the substantial amount of secured debt.  S&P
expects average recovery prospects in a payment default scenario
in the lower half of the 50%-70% range.

At the same time, S&P affirmed its 'BB-' issue rating and '3'
recovery rating on the existing EUR465 million revolving credit
facility (RCF), $400 million senior secured notes due 2017, and
EUR450 million senior secured notes due 2022.  S&P's 'B' issue
and '6' recovery rating on the $250 million ($221 million
outstanding) senior unsecured notes due 2032 is unchanged.

The proceeds from the proposed notes will be used to fully repay
the existing $350 million 6.625% senior secured notes due in

The proposed notes' documentation will mirror the documentation
of the existing senior secured notes, with the same incurrence
covenant, as well as similar restrictions and carve-out baskets.
The security and guarantee package will be the same as the former

The 'BB-' rating on Sappi Ltd. is constrained by the company's
large exposure to structurally declining European paper markets
and cyclical cash flow generation, but supported by a
strengthening financial profile and strong liquidity position.
The positive outlook reflects S&P's view that we could upgrade
the corporate rating to 'BB' if the financial risk profile
improves further.

Key analytical factors:

   -- The 'BB-' issue and '3' recovery ratings on the existing
      and proposed senior secured notes reflect their contractual
      subordination to prior-ranking liabilities and the
      substantial amount of equally ranked secured debt.

   -- The issue and recovery ratings on the $250 million ($221
      million outstanding) senior unsecured notes due 2032 are
      'B' and '6', respectively.  The recovery rating on these
      notes is constrained by the unsecured and effectively
      subordinated nature of the instrument.  S&P's hypothetical
      default scenario assumes that a downturn in the paper
      market would lead to operational underperformance and
      prevent the group from refinancing debt maturities, leading
      to a payment default in 2020.

   -- S&P values Sappi as a going concern, underpinned by its
      good market and cost positions and its good vertical
      integration of pulp supply.

Simulated default assumptions:

   -- Year of default: 2020
   -- EBITDA at default: about $339 million
   -- Implied enterprise value multiple: 5.5x
   -- Jurisdiction: South Africa

Simplified waterfall:

   -- Gross enterprise value at default: about $1,862 million
   -- Administrative costs: $168 million
   -- Net value available to creditors: $1,694 million
   -- Priority claims*: $709 million
   -- Secured debt claims*: about $1,812 million
      -- Recovery expectation: 50%-70% (lower half of the range)
   -- Unsecured debt claims*: $344 million
      -- Recovery expectation: 0%-10%

* All debt amounts include six months of prepetition interest.
  S&P assumes that the EUR465 million and South African rand
  (ZAR) 1 billion RCFs are 85% drawn at default.


FAURECIA SA: Fitch Assigns BB- Rating to New EUR500MM Notes
Fitch Ratings has assigned Faurecia S.A.'s (Faurecia; BB-/Stable)
proposed EUR500 mil. senior unsecured notes maturing in June 2023
a senior unsecured rating of 'BB-(EXP)', in line with Faurecia's
Long-term Issuer Default Rating.  The rating is contingent upon
the receipt of final documentation conforming materially to
information already received and of details regarding the amount,
coupon rate and maturity.

The net proceeds from the notes will be used to redeem the EUR490
million notes due in December 2016.  As a result of the make-
whole redemption of the 2016 notes, all existing upstream
guarantees on other instruments will fall and will lead all
senior unsecured debt issued by Faurecia to become unguaranteed
and pari passu with all existing and future senior unsecured

Fitch believes that the issuance simplifies the group's financial
structure and further strengthens its financial flexibility.  In
addition, Fitch expects further positive rating pressure on the
group in the short term following the solid results posted in
2015 and improving prospects in the foreseeable future.

The note prospectus incorporates covenants in line with
Faurecia's 2022 senior notes, including a cap on additional
indebtedness, a limitation on dividends and other distributions,
consolidations as well as cross default and change of control
provisions.  A debt incurrence covenant of the consolidated
senior net indebtedness ratio not exceeding 0.75x has been added
to this issuance, in a supplement to the debt incurrence covenant
of the fixed charge coverage ratio not exceeding 2.0x.

                        KEY RATING DRIVERS

Weak but Strengthening Financial Structure

Faurecia's financial structure was commensurate with the 'B'
category at end-2014, including funds from operations (FFO)
adjusted net leverage at 3.1x, and cash from operations (CFO) on
debt around 20%.  However, it improved at end-2015, proforma of
the disposal of the Automotive Exterior (FAE) business whose cash
proceeds should be received in 2016.  Fitch expects a modest
increase in capex and potential small acquisitions with the
proceeds of FAE to limit the improvement in free cash flow (FCF)
and leverage.

                  Improving Profitability and FCF

The operating margin recovered in 2014 and strengthened further
to 4.4% in 2015.  Fitch expects a further progression towards 5%
in 2016, a level more in line with close peers and a 'BB' rating.
Cash generation is also improving to levels more commensurate
with the 'BB' category with the FFO margin increasing to more
than 5.0% in 2015, from 3.9% in 2014 and 2.9% in 2013.  The FCF
margin remains weak for the rating after adjusting for
derecognized trade receivables that boosted working capital and,
in turn CFO and FCF, but became positive in 2015.  Fitch also
projects that the FCF margin will increase gradually through

                    Leading Market Positions

Faurecia's ratings are supported by its diversification, size and
leading market positions as the seventh largest global automotive
supplier.  Its large and diversified portfolio is a strength in
the global automotive market, which is being reshaped by the
development of global platforms and concentration among large
manufacturers.  Fitch also believes that the group is well
positioned in some fast-growing segments to outperform the
overall auto supply market, notably by offering products
increasing the fuel efficiency of its customers' vehicles.

                       Sound Diversification

Faurecia's healthy diversification by product, customer and
geography can smooth the potential sales decline in one
particular region or lower orders from one specific manufacturer.
Its broad industrial footprint matching its customers' production
sites and needs enables Faurecia to follow its customers in their
international expansion.

                          KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for Faurecia

   -- Revenues to increase by mid-single digits in 2016-2018.
   -- Operating margins to increase toward 6% by 2018.
   -- Restructuring cash outflows to remain around EUR70 million
      per year over 2016-2018.
   -- Capex of around 4.5% of revenue.
   -- Dividend pay-out ratio of around 20%-25%.
   -- Proceeds of the FAE disposal in 2016, small acquisitions
      with the proceeds in 2016-2018.


Negative: Future developments that could, individually or
collectively, lead to a downgrade include:

   -- Inability to sustain the improvement in profitability and
      cash generation, leading in particular to operating margins
      remaining below 3%.
   -- FCF margins remaining below 1%.
   -- Inability to sustain the decrease in leverage, leading in
      particular to FFO adjusted net leverage remaining above 3x.
   -- Deteriorating liquidity, notably through difficult or
      expensive refinancing.

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

   -- Sustained increase of operating margins above 5%.
   -- Sustained increase of FCF margins above 2%.

PEUGEOT SA: Fitch Affirms 'BB' IDR & Revises Outlook to Positive
Fitch Ratings has revised the Outlook on Peugeot SA's (PSA) and
GIE PSA Tresorerie's Long-term Issuer Default Ratings (IDR) to
Positive from Stable.  Fitch has affirmed the IDRs and PSA's
senior unsecured rating at 'BB'.

The rating actions reflect the solid results posted by the group
in 2015 and our expectations that the improvement in key credit
metrics is sustainable.  Fitch believes that PSA's cost savings
and restructuring actions combined with the successful
streamlining of the group's product range have structurally
improved the cost structure and bolstered the operating profit.
This is illustrated by the increase in operating margin from the
core automotive division to 5.0% in 2015, from 0.2% in 2014 and
negative 2.9% in 2013.

Cash generation has also been boosted by the moderation in
investment and strict management of working capital.  The free
cash flow (FCF) margin strengthened to 4.5% in 2015 from 1.8% in
2014 and negative in 2011 to 2013.  The recovery in underlying
profitability and FCF generation has led to a substantial decline
in indebtedness and leverage in the past couple of years.

While Fitch expects a modest increase in capex and the resumption
of dividend payment in 2017 to limit further FCF progression,
Fitch expects key credit metrics to remain strong for the rating.
In particular, Fitch projects that FCF margins will remain in the
2.0%-2.5% range, funds from operations (FFO)-adjusted net
leverage be negative and cash from operations on debt increase
gradually to 75% through 2018 from 50% at end-2015.

From a business standpoint, Fitch views PSA as solidly positioned
in the 'BB' rating category although the group remains reliant on
Europe and has a relatively modest size on a global basis.  PSA
has limited capability for synergies on a standalone basis and a
potential need for external alliances, notably to lower
development costs in a cost- and asset-intensive industry.
However, it benefits from adequate brand diversification through
its three marques and from solid market shares in some markets,
notably Europe where it is the second-largest manufacturer.
Fitch also believes that recent-cost cutting actions have made
the group more agile and less sensitive to cyclical sales
declines, as illustrated by the decrease of the group's breakeven
point to 1.6 million vehicles from 2.6 million in 2013.

                        KEY RATING DRIVERS

Successful Restructuring

Measures to streamline the product portfolio, improve pricing
power and profitably expand international operations as well as
cash-preservation and cost-reduction measures have reduced the
breakeven point and will further support profitability.  Fitch
projects PSA's automotive operating margin will remain between
4.0% and 4.5% through 2018.

                            Positive FCF

The FCF margin increased significantly to 4.5% in 2015 from 1.8%
in 2014.  It was supported by the strengthening of underlying
FFO, another material inflow from working capital of EUR0.6 bil.
after EUR1.0 bil. in 2014, and contained capex.  Fitch assumes a
potential moderate reversal in working capital in 2016, a gradual
and modest increase in investments and the resumption of dividend
payment as from 2017 to weigh on cash generation.  However, Fitch
expects FCF to remain above 2% in the foreseeable future.

                           Lower Leverage

Since 2013, indebtedness has been sharply reduced thanks to
positive FCF, the creation of JVs with Santander releasing cash
from Banque PSA Finance, and in turn, dividends paid to PSA, and
the issue of warrants.  Fitch expects FFO adjusted net leverage
to decline further and become negative from about zero at end-

                      Modest Sales Recovery

Fitch expects the market recovery in Europe to support growth.
However, the Chinese market, PSA's largest market, is
decelerating and we expect further challenges in Latin America
and Russia. Longer term, the group's strategy includes a smaller
product range and lower discounts.  This could hinder substantial
volume growth, although it should support the group's pricing
power, investment focus and profitability.

                     Weak Competitive Position

Despite continuous recent improvement, PSA's sales remain biased
toward the European market and the mass-market small and medium
car segments, where competition and price pressure are fiercest.
Competition is also intensifying in foreign markets into which
PSA has diversified, including Latin America, Russia and China

                         Capital Increase

The French state and Dongfeng Motor have become majority
shareholders of PSA, in line with the Peugeot family, each with a
stake of 13.7%.  The capital increase has benefited the financial
profile but the new shareholding structure may present some
challenges when it comes to coordinating the potentially
divergent interests of the various shareholders.

                          KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for PSA include:

   -- Industrial operations' revenue growth of less than 2% in
      2016, accelerating to about 5% in 2017-2018.

   -- Auto operating margin remaining between 4.0% and 4.5%
      through 2018.

   -- Capex to increase to about EUR3.0 bil.-EUR3.3 bil.

   -- Moderate working capital outflow in 2016, neutral in 2017-

   -- Slight increase in dividends received from JVs in China,
      dividend payment to PSA shareholders to resume in 2017.

   -- Dividends and further cash payments from Banque PSA Finance
      for about EUR1bn between 2016 and 2018.

                       RATING SENSITIVITIES

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

Larger scale and further diversification in sales, combined with
a sufficient track record or confidence that the company can meet
the following quantitative guidelines:

   -- Automotive operating margins above 3%
   -- FCF above 1.5%
   -- FFO adjusted net leverage below 1x
   -- CFO/adjusted debt above 40%

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

   -- Automotive operating margins below 2%
   -- FCF below 1%
   -- FFO adjusted net leverage above 2x
   -- CFO/adjusted debt below 25%


Sound Liquidity

Liquidity remains healthy, including EUR10 bil. of readily
available cash and securities for its industrial operations at
end-2015, including Fitch's adjustments of EUR2 bil. for not
readily available cash and marketable securities.  In addition,
committed credit lines of EUR4.2 bil., including EUR1.2 bil. at
Faurecia, were undrawn at end-2015.


GREECE: Resumes Talks with Creditors, Seeks Debt Payment Holiday
Derek Gatopoulus at The Associated Press reports that Greece's
Prime Minister Alexis Tsipras on March 10 said it will seek a
break in bailout debt repayments as part of negotiations with
creditors expected in the spring.

Mr. Tsipras said a debt relief deal would allow Greece to emerge
from years of recession and near-zero growth, the AP relates.

According to the AP, Mr. Tsipras' left-wing government has
quietly dropped demands made last year for a partial cancellation
of bailout debt.

Bailout inspectors resumed talks in Athens on March 16 to press
Greece for further cost-cutting reforms that include an overhaul
of the country's pension system, the AP discloses.

The European Union's financial affairs commissioner,
Pierre Moscovici, said a debt relief deal could be ready by the
summer if the current bailout review is successful, the AP

Greece missed a repayment to the International Monetary Fund last
year before reaching an agreement with creditors for a third
international bailout worth more than EUR80 billion (US$88
billion), the AP recounts.


F-E GOLD: Fitch Affirms BB- Rating to EUR3.6MM Class C Notes
Fitch Ratings has taken various rating actions on F-E Gold S.r.l
(F-E Gold) notes, as:

  EUR61.2 mil. class A2 notes upgraded to 'AAsf' from 'Asf';
   Outlook Stable

  EUR19.8 mil. class B notes affirmed at 'BB+sf'; Outlook revised
   to Stable from Negative

  EUR3.6 mil. class C notes affirmed at 'BB-sf'; Outlook revised
   to Stable from Negative

F-E Gold is a securitization of Italian financial leases on real
estate, auto and equipment assets originated in 2006.  To date,
the real estate leases account for 99.8% of the performing
collateral. The leases are mainly floating-rate with monthly
instalments, while the notes pay quarterly at a floating rate
based on Euribor. The notes have switched to sequential
amortization three times in April 2013, October 2014 and July
2015, and the repayment of the notes will therefore remain
sequential until final maturity.

                        KEY RATING DRIVERS

Stabilized Asset Performance

The transaction's performance has been stable since Fitch's last
rating action in March 2015, with marginal increase in cumulative
defaults and losses, which currently stand at 9% and 5.3%,
respectively.  The proportion of leases in arrears, however,
remains high, albeit to some extent due to pool amortization.
The lifetime recovery expectation for the real estate sub-pool
remains unchanged at 30%.

                      Strong Credit Enhancement

The priority of payments for note redemption has switched to
sequential irreversibly, following the occurrence of pro-rata
cessation event, triggered by the third temporary principal
deficiency ledger (PDL) shown on the July 2015 payment date.  The
PDL was cleared in 3Q15.  Credit enhancement (CE) for the class A
notes has therefore built up significantly to 46.1% from 34.1%
over the last 12 months, resulting in today's upgrade.  Tail risk
has been transferred to the more junior notes, as the portfolio
has migrated to almost exclusively real-estate leases with slower
amortization due to their longer average tenors.

                      Increasing Concentration

Fitch analyzed the loan-by-loan portfolio as of end-December 2015
through its proprietary Portfolio Credit Model (PCM) to assess
the impact of increasing obligor and industry concentration.  The
top 10 lessees represent 11.2% of the non-defaulted portfolio,
while 28 lessees (out of 916) represent more than 0.5% of the
portfolio notional and therefore are considered large in the SME
CLO criteria framework.

                      RATING SENSITIVITIES

The revisions of Outlooks to Stable on the class B and C notes
reflect the increase in CE due to performance stabilization and
notes redemption.  Given the increasing obligor and sector
concentration, volatile performance history, and the transfer of
tail risk to the more junior notes since the waterfall has
switched to sequential, upgrades for the class B and C are only
possible if the transaction exhibits a longer history of sound
performance.  Conversely, the class B and C notes may be
downgraded if larger- than-expected losses are realized.

Rating sensitivity to increased default rate (class A2/B/C)
Current ratings: 'AAsf'/'BB+sf'/'BB-sf'
Increase base case default rate by 10%: 'AAsf'/'BBsf'/'Bsf'
Increase base case default rate by 25%: 'AA-sf'/'B+sf'/'Bsf'

Rating sensitivity to reduced recovery rate (class A2/B/C)
Current ratings: 'AAsf'/'BB+sf'/'BB-sf'
Reduce base case recovery by 10%: 'AAsf'/'BB+sf'/'Bsf'
Reduce base case recovery by 25%: 'AAsf'/'BBsf'/'Bsf'

Rating sensitivity to increased default rate and reduced recovery
rate (class A2/B/C)
Current ratings: 'AAsf'/'BB+sf'/'BB-sf'
Increase base case default rate by 10%: reduce base case recovery
by 10%: 'AAsf'/'BB-sf'/'Bsf'
Increase base case default rate by 25%: reduce base case recovery
by 25%: 'A+sf'/'Bsf'/'Bsf'

                        DUE DILIGENCE USAGE

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

                          DATA ADEQUACY

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

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.


ALGECO SCOTSMAN: S&P Puts 'B-' CCR on CreditWatch Developing
Standard & Poor's Ratings Services said that it has placed all of
its ratings on Algeco Scotsman Global S.a.r.l., including S&P's
'B-' corporate credit rating, on CreditWatch with developing

"The CreditWatch placement follows Modular Space and Algeco's
joint announcement that they have entered into an agreement to
merge their North American modular space operations," said
Standard & Poor's credit analyst Betsy Snyder.  "Under the
proposed agreement, Algeco Scotsman would merge its North
American operations into Modular Space Corp., creating a combined
fleet of about 150,000 units."  Algeco Scotsman will continue to
independently operate its European, Asian, and remote
accommodation businesses.  Pro forma for this transaction, Algeco
is expected to own about half of the equity in the combined
business, though the proposed capital structure of the combined
business and other financial terms of this transaction have not
been disclosed.  S&P could affirm, raise, or lower its ratings on
Algeco depending on the combined strength of the merged entity's
business risk profile, financing strategy, and new capital

S&P will resolve the CreditWatch placement when the transaction
closes and more information becomes available about the combined
business' new capital structure and financing plans.

INTELSAT SA: Mulls Debt Exchange with Bondholders
Jodi Xu Klein and Carol Ko at Bloomberg News report that Intelsat
SA is discussing a potential debt exchange with bondholders that
would inject fresh capital into the satellite operator while
giving the creditors a higher-ranking claim on the company's

According to Bloomberg, people with knowledge of the matter said
holders of Intelsat bonds, including its US$1.5 billion of 7.25%
unsecured notes maturing in April 2019, have hired Houlihan Lokey
Inc. and Davis Polk & Wardwell to advise them in negotiations,

The people said holders of Intelsat bonds, including its US$1.5
billion of 7.25% unsecured notes maturing in April 2019, have
hired Houlihan Lokey Inc. and Davis Polk & Wardwell to advise
them in negotiations, Bloomberg relays.  They said discussions
come after the company's negotiations with senior lenders to
loosen its credit agreement stalled last week, Bloomberg notes.

The talks were aimed at allowing the parent company to issue a
second-lien loan that would be placed beneath its existing US$3.1
billion of term loans, Bloomberg says.  That would enable
Intelsat to cut its $15 billion debt load through a bond
exchange, according to Bloomberg.

                         About Intelsat

Luxembourg-based Intelsat is a provider of satellite
services worldwide.  For over 45 years, Intelsat has been
delivering information and entertainment to media and network
companies, multinational corporations, Internet Service Providers
and governmental agencies.

                         *     *     *

AS reported by the Troubled Company Reporter-Europe on March 3,
2016, Standard & Poor's Ratings Services said it lowered its
corporate credit rating on Luxembourg-based Intelsat S.A. to
'CCC' from 'B' and removed the ratings from CreditWatch, where
S&P had placed them with negative implications on Feb. 22, 2016.
S&P said the outlook is negative.

"The ratings downgrade reflects our view that the company could
consider a subpar debt exchange or redemption as part of its
balance sheet initiatives, which in light of Intelsat's steep
debt leverage we would view as a selective default rather than
opportunistic," said Standard & Poor's credit analyst Michael


CADOGAN SQUARE: S&P Raises Rating on Class E Notes to 'BB+'
Standard & Poor's Ratings Services raised its credit ratings on
Cadogan Square CLO IV B.V.'s class B-1, B-2, C, D, and E notes.
At the same time, S&P has affirmed its 'AAA (sf)' rating on the
class A notes.

The rating actions follow S&P's credit and cash flow analysis of
the transaction using data from the January payment date report
and the application of its relevant criteria.

"We conducted our cash flow analysis to determine the break-even
default rate (BDR) for each rated class of notes.  The BDR
represents our estimate of the maximum level of gross defaults,
based on our stress assumptions, that a tranche can withstand and
still pay interest and fully repay principal to the noteholders.
We used the portfolio balance that we consider to be performing,
the reported weighted-average spread, and the weighted-average
recovery rates that we considered to be appropriate.  We
incorporated various cash flow stress scenarios using our
standard default patterns, levels, and timings for each rating
category assumed for each class of notes, combined with different
interest stress scenarios as outlined in our corporate
collateralized debt obligation (CDO) criteria," said S&P.

From S&P's analysis, it has observed that the performing
portfolio's overall credit quality has improved since its
April 17, 2015 review.  The class A notes have amortized further
since S&P's previous review, which has increased the available
credit enhancement for all classes of notes.

S&P has raised its ratings on the class B-1, B-2, C, D, and E
notes as its cash flow analysis results indicate that the
available credit enhancement is commensurate with higher ratings
than those currently assigned.

S&P considers the available credit enhancement for the class A
notes to be commensurate with the currently assigned rating.
Therefore, S&P has affirmed its 'AAA (sf)' rating on the class A

Cadogan Square CLO IV is a cash flow collateralized loan
obligation (CLO) transaction that securitizes loans to primarily
speculative-grade corporate firms.  The transaction closed in May
2007.  The transaction manager is Credit Suisse Asset Management
Ltd. and the reinvestment period ended in July 2013.


Cadogan Square CLO IV B.V.
EUR507 mil secured floating-rate notes

                                    Rating      Rating
Class       Identifier              To          From
A           XS0299876705            AAA (sf)    AAA (sf)
B-1         XS0299876887            AA+ (sf)    AA (sf)
B-2         XS0299876960            AA+ (sf)    AA (sf)
C           XS0299877182            AA (sf)     A (sf)
D           XS0299877265            BBB+ (sf)   BBB- (sf)
E           XS0299874759            BB+ (sf)    BB- (sf)

NEW WORLD: S&P Lowers CCR to 'CCC-', Outlook Negative
Standard & Poor's Ratings Services said it has lowered its long-
term corporate credit rating on Netherlands-headquartered Czech
coal miner New World Resources N.V. (NWR) to 'CCC-' from 'CCC'.
The outlook is negative.

At the same time, S&P lowered its issue rating on NWR's EUR300
million senior secured notes, due 2020, to 'CCC-' from 'CCC'.

The downgrade reflects NWR's announcement that it has entered
into negotiations with its stakeholders to address the group's
currently unsustainable capital structure.  S&P believes the
capital restructuring may involve contributions from noteholders
to the extent that S&P may consider that they are receiving less
than the promise on the original securities.

On March 9, 2016, the company announced that majority shareholder
CERCL Mining Holdings B.V. and its affiliates had transferred all
of their shares to NWR PLC for zero consideration.  On Feb. 23,
2016, NWR and the majority of lenders under the super senior
credit facility (SSCF) -- who hold a significant portion of the
senior secured notes and are now the company's shareholders --
agreed the terms of a standstill and temporary waiver agreement.
The agreement reduces the requirements of the minimum cash
covenant under the SSCF documentation until the agreement expires
on July 31, 2016.  During this period, the agreement requires key
milestones in discussions with the Czech government and majority
lenders under the SSCF in order to restructure the group.  The
range of outcomes notably include the extension of debt
maturities, a debt-for-equity swap, additional cash injections,
contributions from the government regarding employee costs
resulting from mine closures, and contributions from operational
stakeholders in the form of discounts or cost reductions--some of
which S&P could consider as noteholders receiving less than the
original promise.

S&P understands that the company will continue to service debt,
interest, and principal -- as per terms and conditions of the
instruments -- during this period.

For full-year 2015, the company reported close to zero EBITDA, in
line with S&P's expectations, and negative funds from operations
and free cash flows, resulting in very highly leveraged credit
metrics.  S&P continues to forecast materially negative EBITDA in
2016 due to depressed coal prices, despite management's ongoing
cost-cutting initiatives.  S&P's base case has not materially
changed since its last research update.

S&P continues to view liquidity as weak, although the waiver
agreement allows for leeway under the minimum cash covenant under
the SSCF.  However, this agreement expires on July 31, 2016.

The issue rating on the EUR300 million senior secured notes, due
2020, is 'CCC-', in line with S&P's long-term corporate credit
rating on NWR.  The notes are guaranteed by operating
subsidiaries OKD A.S. and NWR Karbonia S.A., ranking the secured
notes at least pari passu with unsecured liabilities at the
operating level.

S&P views the security package for the senior secured notes as
relatively weak because the noteholders have no security over
fixed assets.  Moreover, the depletion of mines over time, if not
combined with a debt reduction, will reduce the value of the
security package.

Any insolvency proceedings against NWR would most likely
originate in the Czech Republic and Poland.  S&P has not assigned
recovery ratings to the rated notes because S&P's reviews of the
Czech Republic and Poland's insolvency regimes are not yet

S&P does not rate the EUR150 million mandatory convertible notes,
due in 2020, because S&P understands that they are contractually
subordinated to other liabilities in the capital structure.

The negative outlook reflects that S&P will most likely downgrade
NWR to 'D' or 'SD' once the terms of the restructuring agreement
are known, and if S&P considers that the noteholders are
receiving less value than the promise of the original securities.


1BANK PJSC: Placed Under Provisional Administration
The Bank of Russia, by its Order No. OD-904, dated March 17,
2016, revoked the banking license of Vladikavkaz-based credit
institution Joint-Stock Commercial Bank 1Bank, PJSC (PJSC JSCB
1Bank) from March 17, 2016.

The Bank of Russia took such an extreme measure -- revocation of
the banking license -- because of the credit institution's
failure to comply with federal banking laws and Bank of Russia
regulations, due to repeated application within a year of
measures envisaged by the Federal Law "On the Central Bank of the
Russian Federation (Bank of Russia)", considering a real threat
to the creditors' and depositors' interests.

With its poor asset quality, PJSC JSCB 1Bank failed to adequately
assess the risks assumed. An adequate assessment of the credit
risk and a reliable recognition of the bank's assets resulted in
the grounds for the credit institution to implement measures to
prevent the bank's insolvency (bankruptcy).  Besides, the credit
institution failed to comply with restrictions on certain
operations imposed by the Bank of Russia.

The management and owners of the credit institution did not take
effective measures to normalize its activities.  Under these
circumstances, the Bank of Russia took a decision to revoke the
banking license from the credit institution PJSC JSCB 1Bank.

The Bank of Russia, by its Order No. OD-905, dated March 17,
2016, appointed a provisional administration to PJSC JSCB 1Bank
for the period until the appointment of a receiver pursuant to
the Federal Law "On the Insolvency (Bankruptcy)' or a liquidator
under Article 23.1 of the Federal Law 'On Banks and Banking
Activities".  In accordance with federal laws, the powers of the
credit institution's executive bodies have been suspended.

PJSC JSCB 1Bank is a member of the deposit insurance system.  The
revocation of the banking license is an insured event as
stipulated by Federal Law No. 177-FZ "On the Insurance of
Household Deposits with Russian Banks" in respect of the bank's
retail deposit obligations, as defined by law.  The said Federal
Law provides for the payment of indemnities to the bank's
depositors, including individual entrepreneurs, in the amount of
100% of the balance of funds but no more than 1.4 million rubles
per one depositor.

According to the financial statements, as of March 1, 2016, PJSC
JSCB 1Bank ranked 538th by assets in the Russian banking system.


ABENGOA SA: Lines Up Int'l Investors to Inject New Liquidity
Rodrigo Orihuela, Macarena Munoz and Luca Casiraghi at Bloomberg
News report that Abengoa SA lined up international investors
including Elliott Management Corp., KKR Co. LP and Oak Hill
Advisors LP to inject as much as EUR1.8 billion (US$2 billion) of
new liquidity to help the renewable energy producer avoid

According to Bloomberg, Abengoa on March 16 said in a regulatory
filing the investing companies together with Attestor Capital
LLP, Centerbridge Partners LP, D.E. Shaw & Co. and Varde Partners
LP have been working with Abengoa "with a view to acting as
anchor investors for the new money facility," and their intention
would be to provide the company with new loans.

In a new business plan presented on March 16, Abengoa also said
its enterprise value is about EUR5.4 billion, Bloomberg relates.

Abengoa, which is under preliminary creditor protection, is
stepping up efforts to win support from its lenders after
reaching an agreement with its main creditors last week as the
deadline approaches to reorganize or become Spain's largest
corporate insolvency, Bloomberg relays.

Under Spanish law, creditors holding 75% of the debt must approve
the restructuring, Bloomberg discloses.  Abengoa must present a
plan to a court by March 28, Bloomberg notes.

Abengoa SA is a Spanish renewable-energy company.

                        *       *       *

As reported by the Troubled Company Reporter-Europe on Dec. 21,
2015, Standard & Poor's Ratings Services lowered to 'SD'
(selective default) from 'CCC-' its long-term corporate credit
rating on Spanish engineering and construction company Abengoa
S.A.  S&P also lowered the short-term corporate credit rating on
Abengoa to 'SD' from 'C'.  S&P said the downgrade reflects
Abengoa's failure to pay scheduled maturities under its EUR750
million Euro-Commercial Paper Program.


VISTAJET GROUP: Fitch Puts 'B' IDR on Rating Watch Negative
Fitch Ratings has placed Switzerland-based business jet owner and
operator VistaJet Group Holding SA's Long-term Issuer Default
Rating of 'B' on Rating Watch Negative (RWN).

Fitch has also placed the 'B'/'RR4' rating of the USD300 mil.
7.75% notes due 2020 on RWN.  The notes are co-issued by
VistaJet's 99.5%-owned subsidiaries, VistaJet Malta Finance
P.L.C. and VistaJet Co Finance LLC and are unconditionally and
irrevocably guaranteed by VistaJet and its key subsidiaries.

The RWN is driven by Fitch's expectation that VistaJet's funds
from operations (FFO) gross leverage will be substantially higher
than the negative guidelines for the ratings.  This reflects
lower than expected utilization of aircraft and the effect on
cash flows of a depreciation of the EUR to USD exchange rate, as
the company continues to expand its fleet at a fast rate.

The resolution of the RWN will reflect Fitch's revised
expectations for VistaJet, taking into account the 1Q16 outturn,
including the contribution of US and China operations, aircraft
utilization (hours per aircraft), aircraft yield (USD per hour
flown) and the ongoing effect of a weak euro.  Fitch may
downgrade the rating if our expectations for VistaJet's credit
metrics remain sustainably weaker than the current rating
guidance.  The review of the Recovery Rating on the notes will
also reflect the increasing proportion of secured debt.

                        KEY RATING DRIVERS

Weaker 2015 Outturn vs Expectations

Fitch expects VistaJet's financial performance for 2015 to be
substantially weaker than its previous rating case.  The large
proportion of unhedged euro-denominated receipts has resulted in
a large reduction in its USD-reported revenues, with only limited
offset from its European cost base and reduced fuel costs.
Furthermore, Fitch expects that VistaJet will struggle to offset
the depreciation of the euro with higher fees per hour.  Fitch
expects FFO fixed charge cover of about 2.2x and FFO gross
adjusted leverage of about 11.6x for full year 2015,
substantially weaker than Fitch's negative guidelines of 8.0x for
FFO gross adjusted leverage.  Fitch expects leverage to peak in
2016 due to the large debt-funded fleet expansion.

                         Start-Up Delays

VistaJet has experienced delays in commencing domestic operations
in China and a lower than expected start in the US.  Delays to
permits have resulted in some planes being non-operational,
reducing the average number of hours flown per aircraft, with
revenue growth falling behind fleet growth.  However, permit
issues have now been overcome, and the company has reached a
critical mass and is gaining momentum with US domestic sales.  As
a result, Fitch expects the number of hours flown per aircraft to
increase in 2016.

              Uncertain Effect of Economic Pressures

VistaJet's rating incorporates Fitch's expectation that the
company will grow strongly, expanding its fleet to nearly 80
planes by the end of 2017, from 57 at December 2015.  A reduction
in demand for executive jet purchases, driven by weakening
economic growth, adds uncertainty to demand for VistaJet's
services, in Fitch's view.

                      Performance in 2016 Key

As a result of its high rate of expansion, VistaJet's cash flow
measures are subject to lag compared with its capital structure,
as aircraft and matching leverage will be on balance sheet before
the aircraft start to make a meaningful contribution.  VistaJet's
forward sales are reliant on having aircraft in place and
operational before the hours can be sold.  The company has a
backlog of USD812 mil. committed sales between 2016-2019.  Fitch
expects the early 2016 operating performance to allow Fitch to
reset its forecasts for VistaJet, including taking a view on the
lasting impact of the adverse factors experienced in 2015.

                 Liquidity Requirements Stretching

VistaJet generates strong operational cash flow, but this is
offset by the need for additional capital in relation to its
large aircraft purchasing program, and the rapid amortization of
its aircraft related debt.  The company retains access to
aircraft financing, based on its aircraft valuations.  VistaJet
will need to raise additional cash to offset equity paid for new
aircraft and the amortization of the aircraft financing, either
through increased operational cash flow, additional loan drawings
or aircraft sales which are subject to market valuation.  Fitch
expects headroom under its covenants to tighten, which may also
affect its access to funding.

                          KEY ASSUMPTIONS

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

   -- Number of aircraft in operation at the end of 2016 (72) and
      2017 (80).

   -- Revenue per hour (aircraft only), and average utilization
      per aircraft comparable with 2014.

   -- Continued on-balance sheet funding of new aircraft through
      finance leases.

   -- Variable costs such as fuel, ground handling, catering,
      etc. to grow in line with growth in total hours flown.

   -- No dividend pay-out.

                       RATING SENSITIVITIES

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

   -- FFO gross leverage sustainably above 8.0x (2014: 8.7x),
      decline in FFO interest below 2.0x (3.8x), or a reduction
      in the company's contracted revenues to below 40% of total
      revenues (56%).

   -- The notes' rating may also be downgraded if our expectation
      for recovery rates fall below 31%.

Positive: The ratings are on RWN and therefore we do not
anticipate events leading to an upgrade.  Future developments
that may nonetheless, individually or collectively, lead to an
upgrade include:

   -- FFO gross leverage consistently lower than 6.0x, FFO
      interest above 3.0x along with no significant deterioration
      in the company's premium profit margins and high revenue


Fitch views VistaJet's liquidity position as satisfactory, but in
need of continued availability of external funding to cover
planned aircraft acquisitions and debt amortization.  At end-
2015, VistaJet had readily available cash and cash equivalents of
USD37.8 mil., compared with short-term debt of about USD200 mil.
VistaJet funds almost all of its aircraft assets through finance
leases, which have a regular amortization schedule, combined with
operating cash flow, working capital and equity released from
aircraft sales.


Vistajet Group Holdings SA
Long-term IDR 'B' on RWN

Vistajet Malta Finance P.L.C.
Senior unsecured USD300m notes due 2020 rating 'B'/Recovery
Rating 'RR4' on RWN

Vistajet Co Finance LLC
Senior unsecured USD300m notes due 2020 rating 'B'/Recovery
Rating 'RR4' on RWN


ARCELIK AS: S&P Affirms 'BB+' CCR, Outlook Remains Stable
Standard & Poor's Ratings Services affirmed its 'BB+' long-term
corporate credit rating on Turkey-based home appliances
manufacturer Arcelik A.S.  The outlook remains stable.

At the same time, S&P affirmed its 'BB+' issue rating on
Arcelik's senior unsecured notes and revised the recovery rating
upward to '3' from '4', indicating S&P's improved expectation of
recovery prospects in the higher half of the 50%-70% range.

The affirmation reflects S&P's view that Arcelik's operating
performance in 2016 should be stable, thanks mostly to steady
revenue growth prospects in Europe and in its domestic market of
Turkey and a flexible operating cost structure, notably in terms
of economies of scale and low labor costs.

S&P forecasts free operating cash flow to remain positive in 2016
but lower than in 2015 due to higher working capital needs in

S&P revised the recovery ratings on Arcelik's senior unsecured
notes because of improved recovery prospects following S&P's
revision of the enterprise value multiple to 5.5x.

Arcelik's business strengths are mainly its dominant position in
the Turkish home appliances (50% market share) and consumer
electronics market, where it has growth prospects from
sociodemographic changes, strong brand recognition, and a wide
and exclusive retail distribution network.  S&P views its
operating cost structure as relatively flexible; its large
manufacturing plants provide economies of scale and are located
in countries with low labor costs and proximity to consumer end

Geographical diversification continues to improve, with nearly
60% of revenues generated outside Turkey, including 45% from
Western, Central, and Eastern Europe.  This means a significant
portion of Arcelik's income is generated in hard currencies
(euros, British pound sterling, and U.S. dollars).  Arcelik is
gaining market share in the region and has now strong positions
in countries like the U.K. and Poland, both of which have good
demand growth prospects.  In S&P's view, Arcelik is competitive
in mid- to low-price products with a relatively wide product
range.  It also holds brands like Beko and Grundig which are
quite recognized in Europe.

S&P expects that the company will continue to try to gain market
share in Europe in the mid-price segment while defending its
leading positions in Turkey and South Africa.  Its expansion in
South-East Asia is supported by the demand growth prospects but
competition with regional manufacturers is expected to be very

The home appliances industry features some cyclicality in
consumer demand (products are discretionary to an extent),
volatility in raw material prices (which Arcelik mostly purchases
in euros and U.S. dollars), and intense price pressure among
retailers in mature markets.  S&P remains cautious about the
strength of consumer spending in Turkey, which is fueled partly
by consumer credit growth, and in Western Europe where consumer
demand is mostly driven by product replacement.  S&P also
believes that Arcelik has a limited competitive advantage in
consumer electronics, where its scale of operations and margins
are smaller than in home appliances.

In S&P's view, Arcelik's large (over 45%) share of income in hard
currencies and its interest rate risk coverage (about 50% of its
debt is fixed-rate) should mitigate the impact of a volatile
Turkish lira and the high cost of financing in Turkey.  Arcelik
also maintains cash balances denominated in multiple currencies
and actively hedges its main currency exposures.

Despite two long-term bond issuances in the past three years, S&P
views the debt maturity profile as still skewed toward the short
term.  Indeed, about 40% of total debt is due within one year and
funds the large working capital needs in the Turkish business.
S&P understands that management is now implementing measures to
durably reduce the level of receivables and inventories.

S&P's base case for 2016-2017 assumes:

   -- Revenues of TRY15 billion-TRY15.5 billion in 2016 and
      TRY16.5-17 billion in 2017.  S&P assumes high-single-digit
      growth in household appliances from market penetration in
      Western Europe, and favorable currency movements and steady
      consumer demand in Turkey.  S&P assumes mid- to low-single-
      digit growth for consumer electronics and other appliances.

   -- An EBITDA margin of about 10.5%-11%, as rising revenues
      from Turkey and Europe as well as low steel and plastics
      prices should offset negative currency-exchange effects on
      raw materials, which are mostly priced in euros or dollars.

   -- Positive free operating cash flow of about TRY150 million-
      TRY350 million after negative working capital movements due
      to the ramp-up of production in Thailand and in 2017 some
      expansion capex in Romania.

   -- Small bolt-on acquisitions and no disposals.  S&P forecasts
      a dividend payout of about 50% of net income.

   -- Standard & Poor's-adjusted debt of about TRY4billion-TRY4.3
      billion.  This includes borrowings, operating leases, and
      the pension deficit.  S&P nets out debt with cash balances
      adjusted for a 15% haircut to reflect the level of
      restricted cash.

Based on these assumptions, S&P arrives at these adjusted credit
measures for 2016 and 2017:

   -- EBITDA interest coverage of about 3.6x-4.0x (2015: 3.6x).
   -- Adjusted debt to EBITDA of about 2.3x-2.6x (2015: 2.4x).
   -- Free operating cash flow (FOCF) to adjusted debt of 0%-15%.

The stable outlook reflects S&P's view that Arcelik's large share
of earnings in hard currencies should offset unfavorable currency
movements and higher financing costs in Turkey in 2016.  Despite
S&P's forecast of higher working capital needs and capital
expenditures this year, S&P forecasts Arcelik to continue
generating positive free operating cash flow and stable debt
leverage.  At the current rating level, S&P believes that Arcelik
should maintain an EBITDA interest coverage ratio of about 4.0x
and debt to EBITDA of 3.0x-3.5x.

S&P would lower the rating if it sees a continued deterioration
in free cash flow and debt leverage in 2016.  S&P will
particularly monitor working capital expansion related to the
ramp-up of operations in Asia.  In Turkey, working capital
volatility could occur if Arcelik were to help its Turkish
retailers through payment extensions if domestic demand drops
sharply.  S&P would also take into account a potential drop in
demand in Europe combined with a sharp rise in the cost of
financing in Turkey.  S&P could lower the rating if EBITDA
interest coverage falls below 3x or if debt to EBITDA increases
to more than 4x on a sustained basis.

An upgrade would be contingent on several factors:

First, S&P would not raise the rating unless it revised its
assessment of Arcelik's liquidity position to adequate from less
than adequate.  This could occur, for example, if Arcelik was
able to reduce sustainably the size of its working capital, which
is funded with short-term debt, or secure long-term committed
credit lines from banks as an additional liquidity source.

Second, in considering an upgrade we would look for EBITDA
interest coverage of about 5x and an FOCF-to-debt ratio of 10%-
15% on a sustained basis, indicating that credit metrics are well
within the significant financial risk profile category.

Finally, for S&P to rate Arcelik higher than the Republic of
Turkey (foreign currency ratings BB+/Negative/B), S&P would need
to be satisfied that Arcelik passes a sovereign default stress

U N I T E D   K I N G D O M

GATE SME 2006-1: S&P Affirms BB+ Rating on Class A Notes
Standard & Poor's Ratings Services has affirmed its credit
ratings on GATE SME CLO 2006-1 Ltd.'s class A, B, C, D, and E

The affirmations follow the application of S&P's criteria for
European collateralized loan obligations (CLOs) exposed to small
and midsize enterprises' (SMEs) credit risk, as well as S&P's
assessment of the transaction's performance using the latest
available investor report and portfolio data.

                        PERFORMANCE REVIEW

Deutsche Bank AG, acting as swap counterparty, stopped
replenishing the synthetic portfolio in January 2015.  As a
result, the exposure to SME loans reduced to EUR1.74 million from
EUR2.08 million in our previous review.

Since S&P's previous review, the issuer has allocated additional
losses to the class F notes, which act as a first loss piece (the
class with the lowest payment priority in the structure).  The
class F notes' allocated losses are EUR42.13 million, compared
with EUR22.96 million at our previous review.  As a result, the
available credit enhancement for the rated notes has marginally
decreased since S&P's 2013 review.

Liquidation of assets subject to a credit event has generally
occurred up to about two years after credit events.  S&P
anticipates that the issuer will allocate further losses to the
class F notes on future interest payment dates as more defaulted
loans complete their workout procedures.  In S&P's analysis, it
took this expected loss allocation into account by decreasing its
credit enhancement assumptions.

Class                   Current CE (%)     CE as of June 2013 (%)
A                             4.0                  5.8
B                             2.4                  4.5
C                             2.0                  4.1
D                             0.8                  3.2
E                             0.0                  2.4

CE--Credit enhancement.

In addition to the loans currently undergoing workout, the
originator classifies EUR9.34 million, representing 0.54% of the
total reference pool, as defaulted.  To date, these loans have
not triggered a credit event under the transaction documents.
However, S&P believes they risk triggering further credit events
and incurring losses for the transaction.  As such, S&P has
considered these loans as defaulted in its analysis.

In overall terms, the cumulative notional amount of loans that
experienced a credit event since closing equals EUR101.23
million, i.e., 4.82% of the initial portfolio notional.

                          CREDIT ANALYSIS

S&P has applied its European SME CLO criteria using its CDO
Evaluator model to determine the portfolio's 'AAA' scenario
default rate (SDR) of 13%.  The SDR is the minimum level of
portfolio defaults S&P expects each collateralized debt
obligation (CDO) tranche to be able to support the specific
rating level.  S&P based its SDR calculation on a target
portfolio rating of 'bb' (excluding assets that the originator
classifies as defaulted), which S&P derived from three factors:

   -- A weighted-average Banking Industry Country Risk Assessment
      (BICRA) score, calculated using the BICRA of each of the
      countries in the portfolio;

   -- The five-year average observed default frequency of the
      originator's overall SME loan book; and

   -- The transaction portfolio's credit quality, considering the
      originator's overall SME loan book's credit quality.

To derive S&P's loan-level rating inputs for its CDO Evaluator
model, S&P mapped--to a Standard & Poor's rating--the
originator's internal performing credit scores assigned to the
various obligors in the transaction's portfolio.

S&P did this to ensure that the portfolio's weighted-average
rating equals the portfolio's target 'BB' rating.

In order to determine S&P's 'B' SDR, it has reviewed the
portfolio's historical performance, while considering recent
market trends and developments.  As a result of this analysis,
S&P's 'B' SDR is 3%.  Furthermore, S&P interpolated the SDRs for
rating levels between 'B' and 'AAA' in accordance with S&P's
European SME CLO criteria.

                       RECOVERY RATE ANALYSIS

At each liability rating level, S&P assumed a weighted-average
recovery rate (WARR) by considering the asset type, its
seniority, and the country recovery grouping.

The portfolio includes both senior-secured and senior-unsecured
reference obligations.  Losses on defaulted reference obligations
include foregone interest, which is capped at 9.3% of the
reference obligation's liquidations' amount.  S&P has taken these
factors into account in its analysis and have consequently
determined our recovery assumptions for the transaction at
various rating scenarios to be:

Rating level                      Recovery assumptions (%)
BBB                               23.5
BB                                27.6
B/CCC                             29.2

S&P applied the recovery rates to the SDRs at each rating level
to calculate the scenario loss rates (SLRs) (SLR = SDR x [1-
recovery rate]).

                         SUPPLEMENTAL TESTS

S&P applied the largest obligor default test to the class A, B,
C, D, and E notes.  The application of the largest obligor test
constrained S&P's rating on the class A notes at 'BB+ (sf)'.

S&P has not subjected the transaction to its largest industry and
region default tests as S&P rates none of the notes at 'AAA' or

S&P's credit analysis indicates that the available credit
enhancement for the class A, B, C, D, and E notes is commensurate
with the currently assigned ratings.  S&P has therefore affirmed
its ratings on the class A, B, and C notes.

In S&P's view, the payment of principal or interest when due on
the class D and E notes is dependent upon favorable business,
financial, or economic conditions.  A default on the class E
notes is more imminent than on the class D notes, in S&P's view.
Therefore, S&P has affirmed its 'CCC- (sf)' rating on the class E
notes and its 'CCC (sf)' rating on the class D notes.

GATE SME CLO 2006-1 is a balance-sheet synthetic SME transaction
that closed in October 2006.  The reference portfolio includes
loans, revolving credit facilities, and other claims that
Deutsche Bank or any of its subsidiaries or affiliates originated
and granted to predominately German SMEs and larger companies.
Subordination is the only source of credit enhancement for the
rated notes, which redeem sequentially, starting with a reduction
of the unfunded senior portion.  Realized losses are allocated to
the notes in reverse order of seniority, starting with the class
F notes.


GATE SME CLO 2006-1 Ltd.
EUR185 mil floating-rate credit-linked notes

                                   Rating           Rating
Class            Identifier        To               From
A                XS0271959388      BB+ (sf)          BB+ (sf)
B                XS0271960048      B+ (sf)           B+ (sf)
C                XS0271960550      B- (sf)           B- (sf)
D                XS0271961012      CCC (sf)          CCC (sf)
E                XS0271961103      CCC- (sf)         CCC- (sf)

HAWICK KNITWEAR: Lyber 2016 to Acquire Business
The Scotsman reports that a buyer has been found for Hawick
Knitwear, which went into administration earlier this year with
the loss of more than 120 jobs.

According to The Scotsman, Lyber 2016, a group formed by Hong
Kong-based Artwell, is to purchase some assets, the firm's name
and intellectual property.

The sale, which includes plant and machinery, was secured by
joint administrators Blair Nimmo and Tony Friar of KPMG, who had
hoped to sell the business as a going concern, The Scotsman

Hawick Knitwear is a Scotland-based knitwear manufacturer.

JERROLD HOLDINGS: Fitch Affirms 'BB-' IDR, Outlook Stable
Fitch Ratings has affirmed UK-based financial institution Jerrold
Holdings Limited's Long-term Issuer Default Rating at 'BB-' and
its Short-term IDR at 'B'.  The Outlook on the Long-term IDR is
Stable.  Fitch has also affirmed the rating of the senior
unsecured notes issued by Jerrold FinCo plc and guaranteed by JH
at 'BB-'.

                          KEY RATING DRIVERS


The ratings reflect the wholesale profile of the group's funding,
its concentration of activities within specialized property
lending and its associated higher arrears relative to mainstream
lenders.  The ratings also reflect JH's recent strong
profitability, supported by a positive operating environment and
stable risk control framework.

Profitability is underpinned by JH's franchise and pricing power
in particular niche markets such as second-charge residential
mortgages and bridging loans.  Risk is well-remunerated, with
wide margins and high fees notwithstanding present low base
rates. Revenue growth is reliant on lending volumes.

JH's funding availability has been enhanced in 2015 and 2016 with
the agreement of increased securitization facilities to
complement existing sources of finance.  This has allowed JH to
continue to extend and diversify its maturity profile, reducing
refinancing risk, though funding remains concentrated on the
wholesale markets.  Due to its funding profile, JH's asset
encumbrance is also high.

Asset growth since 2014 has been rapid, as the group has deployed
its increased funding capacity to meet strong demand for new
lending.  However, capitalization has remained adequate for the
rating, supported by strong internal capital generation as the
group has continued not to pay dividends.  Despite moderately
increasing, debt/equity remained comfortable at 2.4x at Dec. 31,
2015, compared with 2.2x at June 30, 2015.

Higher arrears relative to mainstream lenders are a feature of
JH's business model, particularly in relation to pre-2011
lending, but risk is monitored and managed carefully on an
individual loan basis, with strong collection and recovery
policies in place.  Non-performing arrears (arrears over three
months where receipts in the last three months are less than 90%
of contractual installments) represented 4.3% of receivables at
end-1H16 and have been on a consistently declining trend since
their peak in 2012.

The weighted average indexed LTV of the group's total loan
portfolio at 31 December 2015 was 54.1%, providing strong buffers
against asset quality deterioration.

JH has continued to raise corporate governance standards and
improve compliance and risk controls with a number of recent
senior management hires, necessarily at a time when fast growth
could put pressure on its operational and risk management

The rating of the Jerrold FinCo bond is equalized with JH's
ratings, as the bond is guaranteed by the operating entities of
the group and reflects Fitch's expectation of average recovery

                       RATING SENSITIVITIES


JH's ratings could be downgraded in the event of a prolonged
inability to access wholesale funding markets, a notable rise in
gearing or a material deterioration in asset quality metrics.  A
downgrade could also follow further rapid loan growth, if this
leads to a weakening of the company's risk profile or a
significant rise in conduct and compliance costs.

The higher-risk sectors in which JH lends limit rating upside but
positive rating action could arise from further diversification
of the group's funding structure, if accompanied by ongoing
healthy profitability and asset quality metrics.  A material
increase in available liquidity could also be rating-positive.

The rating of the senior unsecured notes is primarily sensitive
to movements in JH's Long-term IDR, but could also be impacted by
changes to the institution's capital structure or asset
encumbrance levels.

LINKSAIR: To Enter Into Liquidation, April 1 Meeting Set
BBC News reports that LinksAir, a former provider of the Anglesey
to Cardiff air route, is set to go into liquidation.

According to BBC, a meeting of LinksAir's creditors is due to be
held on April 1.

The Civil Aviation Authority revoked the airline's safety license
in October 2015 and the firm contracted other companies until it
pulled out in January, BBC relates.

Passengers are trying to get their money back on journeys booked
before LinksAir stopped providing the service, BBC discloses.

MOTIVE TELEVISION: Statutory Moratorium to Expire Today
Motive Television on March 17 PLC provided an update, further to
the announcement made on March 4, 2016, in which Motive announced
that it had filed at court a second notice of intention to
appoint administrators.  The second filing provided the Company
with a statutory moratorium for a ten-day period, ending on March
18, 2016.  The Board continues to explore options in order to
minimize the financial uncertainty surrounding the Company.  A
further update will be made as and when developments occur  As
the Company has been unable to appoint a replacement Nominated
Advisor, under AIM Rule 1, the admission of the Company's shares
to trading on AIM has now been cancelled.

Motive Television PLC --
provides software as a service (SAAS) to broadcasters to enable
them to offer their customers time-changing and place changing
capabilities for their content.  The Company has offices in
London, Dublin, Barcelona and Casablanca and operates globally
from its HQ in London.


* BOOK REVIEW: Lost Prophets
Author: Alfred L. Malabre, Jr.
Publisher: Beard Books
Softcover: 256 pages
List Price: $34.95
Review by Henry Berry
Order your personal copy today at

Alfred Malabre's personal perspective on the U.S. economy over
the past four decades is firmly grounded in his experience and
knowledge. Economics Editor of The Wall Street Journal from 1969
to 1993 and author of its weekly "Outlook" column, Malabre was in
a singular position to follow the U.S. economy in recent decades,
have access to the major academic and political figures
responsible for economic affairs, and get behind the crucial
economic stories of the day. He brings to this critical overview
of the economy both a lively, often provocative, commentary on
the picture of the turns of the economy. To this he adds sharp
analysis and cogent explanation.

In general, Malabre does not put much stock in economists. "In
sum, the profession's record in the half century since Keynes and
White sat down at Bretton Woods [after World War II] provokes
dismay." Following this sour note, he refers to the belief of a
noted fellow economist that the Nobel Prize in this field should
be discontinued. In doing so, he also points out that the Nobel
for economics was not one originally endowed by Alfred Nobel, but
was one added at a later date funded by the central bank of
Sweden apparently in an effort to give the profession of
economists the prestige and notice of medicine, science,
literature and other Nobel categories.

Malabre's view of economists is widespread, although rarely
expressed in economic circles. It derives from the plain fact
that modern economists, even hugely influential ones such as John
Meynard Keynes, are wrong as many times as they are right. Their
economic theories have proved incomplete or shortsighted, if not
basically wrong-headed. For example, Malabre thinks of the
leading economist Milton Friedman and his "monetarist colleagues"
as "super salespeople, successfully economic
medicine that promised far more than it could deliver" from about
the 1960s through the Reagan years of the 1980s. But the author
not only cites how the economy has again and again disproved the
theories and exposed the irrelevance of wrong-headedness of the
policy recommendations of the most influential economists of the
day. Malabre also lays out abundant economic data and describes
contemporary marketplace and social activities to show how the
economy performs almost independently of the best analyses and
ideas of economists.

Malabre does not engage in his critiques of noted economists and
prevailing economic ideas of recent decades as an end in itself.
What emerges in all of his consistent, clear-eyed, unideological
analysis and commentary is his own broad, seasoned view of
economics-namely, the predominance of the business cycle. He
compares this with human nature, which is after all the substance
of economics often overlooked by professional and academic
economists with their focus on monetary policy, exchange rates,
inflation, and such. "The business cycle, like human nature, is
here to stay" is the lesson Malabre aims to impart to readers
interested in understanding the fundamental, abiding nature of
economics. In Lost Prophets, in language that is accessible and
jargon-free, this author, who has observed, written about, and
explained economics from all angles for several decades,
persuasively makes this point.

In addition to holding a top position at The Wall Street Journal,
Malabre is also the author of the books, Understanding the New
Economy and Beyond Our Means, which received the George S. Eccles
Prize from the Columbia Business School as the best economics
book of 1987.


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,

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

                 * * * End of Transmission * * *