TCREUR_Public/160407.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

          Thursday, April 7, 2016, Vol. 17, No. 068


                            Headlines


B E L A R U S

BELARUSBANK JSC: S&P Affirms 'B-/C' Counterparty Credit Ratings


G E R M A N Y

STEILMANN SE: Group of Companies to File for Insolvency


I R E L A N D

PETROCELTIC INT'L: Board to Support Worldview's Buy-Out Bid


I T A L Y

LKQ ITALIA: Moody's Assigns Ba2 Rating to EUR500MM Sr. Notes


S P A I N

ABENGOA SA: Judge OKs Moratorium Amid Debt Restructuring Talks
BANKIA: S&P Raises Long-Term Counterparty Credit Ratings to 'BB+'


T U R K E Y

GLOBAL ENERJI: Istanbul Court Suspends Debt Enforcement Process


U K R A I N E

KHRESCHATYK BANK: Declared Bankrupt Following Liquidity Woes


U N I T E D   K I N G D O M

MIZZEN MEZZCO: Fitch Affirms 'B+' Long-Term Issuer Default Rating
TATA STEEL: Welsh Gov't Can't Offer Tax Cuts to Port Talbot
TOWD POINT 2016-GRANITE 1: Moody's Rates Class G Notes (P)B1


X X X X X X X X

* Fitch: Crossover Credits to Lead to EMEA Bond Issuance Recovery


                            *********


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B E L A R U S
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BELARUSBANK JSC: S&P Affirms 'B-/C' Counterparty Credit Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it has affirmed its
'B-/C' long- and short-term counterparty credit ratings on JSC
Savings Bank Belarusbank.  The outlook is stable.

The affirmation reflects S&P's view that Belarusbank can
withstand the deterioration of the market environment and that it
demonstrates better performance than peers', due to its market-
leading business position and ongoing support from the Belarusian
government.

S&P has changed its assessment of Belarusbank's capital and
earnings to weak from moderate because increased credit costs are
weighing on the bank's profitability and capitalization.
However, this is neutral to our assessment of the bank's stand-
alone credit profile (SACP), since S&P's Banking Industry Country
Risk Assessment places Belarus' banking sector in group '10',
among the riskiest banking sectors.

As a result, Belarusbank's SACP remains at 'b'.  S&P's long-term
rating on the bank remains at 'B-' because it is capped by S&P's
sovereign rating on Belarus.  The bank's state ownership makes it
strongly dependent on the Belarusian government's fiscal
position, which is currently vulnerable.  Also, the bank operates
exclusively in Belarus and remains highly exposed to country
risk.

The government's capital injection in the nominal amount of BYR10
trillion (about $597 million) in August 2015 increased
Belarusbank's capital by BYR1.2 trillion under International
Financial Reporting Standards.  However, it was lower than S&P
expected and didn't provide a sufficient capital cushion for the
bank to withstand additional credit losses, in S&P's view.
Belarusbank's credit costs rose to 1.2% in 2015 from 0.44% as of
year-end 2014.  S&P expects this ratio to increase further to
2.0%-2.5% in 2016, in line with the gradual deterioration of
asset quality observed in the Belarusian banking system since
2015. However, Belarusbank's credit costs are likely to be lower
than the sector average because the majority of its loan
portfolio comprises the financing of state-sponsored development
programs or state-directed lending to large government-owned
producers.  The higher credit costs will weigh markedly on the
bank's profitability, and S&P projects that its risk-adjusted
capital (RAC) ratio for the bank will fall below 5% as a result,
leading to S&P's view of capital and earnings as weak.

S&P still regards Belarusbank's risk position as adequate, taking
into account the government guarantees provided for most of the
corporate loan book.  In addition, the quality of the loan
portfolio has been supported by the transfer of some
nonperforming loans (NPLs) to the Development Bank of the
Republic of Belarus. S&P expects Belarusbank's NPLs will increase
to 4.5%-5% in 2016 but remain lower than the projected 6% average
for the banking sector.

In S&P's view, Belarusbank's funding remains above average and
its liquidity adequate. Belarusbank remains the leading retail
bank in Belarus, with a 47% market share in retail deposits and
72% in retail loans.  It has a stable and well-diversified
funding base, with retail funds representing 45% of liabilities,
and sufficient liquid assets on the balance sheet.

S&P's view of Belarusbank as a government-related entity (GRE) is
unchanged.  S&P continues to believe that the bank plays a very
important role for the Belarusian government, being among the key
financial players implementing government development programs
and providing funding to strategically important economic
sectors.  At the same time, S&P notes that large contingent
liabilities continue to affect the Belarusian government's
capacity to provide extraordinary support to GREs.  Therefore,
S&P regards the bank's link with the government as limited.  As a
result, the likelihood of Belarusbank receiving extraordinary
support from the government remains moderately high, in S&P's
view.

The stable outlook reflects S&P's view that, despite the
difficult market conditions, Belarusbank can continue generating
positive net income and preserve its current capitalization over
the next 12 months, thanks to its dominant market position,
strategic importance to Belarus' economy, and regular government
support.

Given the bank's state ownership and high dependence on the
government's fiscal position, S&P would downgrade Belarusbank if
S&P was to downgrade Belarus.

Although not part of its base case for the next 12 months, S&P
could lower its ratings on Belarusbank to 'CCC+' or lower if the
loan portfolio's quality deteriorated more than S&P currently
expects, pushing up credit costs further and reducing S&P's RAC
ratio forecast below 3%, leading S&P to revise its capital and
earnings assessment to very weak from weak.

If S&P raised its long-term sovereign credit rating on Belarus,
other factors remaining unchanged, S&P could consider a positive
rating action on Belarusbank.



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G E R M A N Y
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STEILMANN SE: Group of Companies to File for Insolvency
-------------------------------------------------------
The management board of Steilmann SE on April 5 provided notice
with respect to the 6.75 % 2012-2017 bond issued by it (ISIN
DE000A1PGWZ2) -- and having regard to corporate group companies
of Steilmann Holding AG -- as follows:

IDS Idea Development Solution GmbH, Kettenbach GmbH Herstellung
und Vertrieb von Designerstruempfen and MR Hometextile GmbH, each
of which is a wholly-owned subsidiary of Steilmann Holding AG, as
well as Hermann van Dillen Asiatex GmbH, a wholly-owned
subsidiary of MR Hometextile GmbH, and Jansen Textile GmbH, a
wholly-owned subsidiary of Kettenbach GmbH Herstellung und
Vertrieb von Designerstruempfen, will immediately file for
insolvency on grounds of illiquidity with the respective local
courts having jurisdiction over these.

The management board of Steilmann Holding AG has provided notice
that -- having regard to this background, in particular
corresponding necessary valuation adjustments -- it assesses that
Steilmann Holding AG is over-indebted.

Headquartered in Bergkamen, Germany, Steilmann SE engages in the
design, manufacture, and sale of fashion clothes for men and
women worldwide.



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I R E L A N D
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PETROCELTIC INT'L: Board to Support Worldview's Buy-Out Bid
-----------------------------------------------------------
Jillian Ambrose at The Telegraph reports that the board of
embattled oil explorer Petroceltic has said it will support the
controversial 3p a share buy-out bid from Russian-backed fund
Worldview, just days before insolvency proceedings are due to
move ahead.

According to The Telegraph, the largest shareholder made an offer
to buy Dublin-based Petroceltic at an 83% discount to its market
value, which was initially rebuffed by the board as
"undervaluing" the company.

But the fund retaliated by purchasing almost 70% of the group's
senior debt facility totaling US$233 million (GBP163 million) in
a bid to take control of its restructuring as it moves into
insolvency, The Telegraph relates.

The company now faces insolvency proceedings in the Irish courts
beginning this Friday, April 8, and has urged shareholders to
accept the offer by April 14, The Telegraph relays.

Worldview will need to secure support of 90% of shareholders in
order to snap up the explorer at the bargain rate, The Telegraph
notes.

The company has debts of US$200 million (GBP140 million) versus a
stock market value of just GBP46 million earlier this year before
trading of the stock was suspended, The Telegraph discloses.

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



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I T A L Y
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LKQ ITALIA: Moody's Assigns Ba2 Rating to EUR500MM Sr. Notes
------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to LKQ Italia
Bondco S.p.A.'s EUR500 million senior unsecured notes due 2024.
LKQ Italia Bondco S.p.A. is an indirect wholly owned subsidiary
of LKQ Corporation ("LKQ").  The new notes are expected to be
guaranteed by LKQ Corporation and each of its 100% owned domestic
subsidiaries that guarantee the company's existing senior secured
credit facilities as well as certain other foreign subsidiaries
that are subsidiaries of Rhiag-Inter Auto Parts Italia S.p.A.
(Rhiag), the Italian-based entity LKQ bought in March of this
year.  Moody's affirmed all of LKQ's existing ratings including
its Ba1 Corporate Family Rating ("CFR"), Ba1-PD Probability of
Default Rating and Ba2 rating on its 4.75% $600 million senior
notes due 2023.  The ratings outlook is negative.

The outlook remains negative primarily due to the currently
elevated financial leverage pro forma for the acquisition of
Rhiag and the pending acquisition of Pittsburgh Glass Works
(PGW). However, Moody's anticipates in the ratings that the
company will use a portion of anticipated free cash flow to repay
acquisition-related borrowings under its revolver.

As the company had previously indicated, the proposed notes are
being issued to term out a portion of the revolver borrowings
used to fund its recent acquisitions.  As a result, the proposed
transaction is leverage neutral.  Net proceeds from the proposed
offering are expected to be used to repay approximately $542
million of revolver borrowings and pay related fees and expenses.
The proposed notes are in a slightly better credit position than
LKQ's existing senior unsecured notes because they have a
structurally senior claim on certain Italian assets and
operations.  However, Moody's does not believe such assets are
material enough to warrant a higher rating than the existing 2023
notes.

Moody's has taken these rating actions:

Ratings assigned:

LKQ Italia Bondco S.p.A.

  Backed Senior Unsecured Notes due 2024, at Ba2 (LGD-5)
  Outlook, Negative

Ratings affirmed:

LKQ Corporation

  Corporate Family Rating, at Ba1;

  Probability of Default Rating, at Ba1-PD;

  Existing $600 million senior unsecured notes due 2023, at Ba2
   (LGD5)

  Speculative Grade Liquidity Rating, at SGL-2

  Outlook, Negative

Moody's does not rate LKQ's $3.2 billion senior secured bank
credit facility.

                        RATINGS RATIONALE

LKQ's Ba1 CFR was affirmed primarily because it incorporates the
company's demonstrated ability to globally grow its presence in
the market for non-OEM aftermarket collision replacement parts
while maintaining credit metrics consistent with the rating.
Over the past several years LKQ has grown through both
acquisitions and organically.  These acquisitions have expanded
the company's market share and its global reach.  Its acquisition
strategy has expanded product offerings to the automotive
aftermarket specialty and mechanical replacement parts markets.
Management has completed other vertical acquisitions in order to
support the company's competitive position as well as undertaken
other profitability initiatives and streamlining of operations to
improve margins. However, the margin profile of some of the
target businesses are lower than that of LKQ's traditional
businesses.

Pro forma for the acquisition of Rhiag and pending acquisition of
Pittsburgh Glass Works, financial leverage metrics would be
elevated for the rating category with debt/EBITDA increasing by
roughly one turn to 3.3 times from 2.3 times.  Moody's
anticipates that the company will not enter into another
meaningfully-sized acquisition before substantially restoring its
credit metrics to pre-acquisition levels, including using part of
its healthy free cash flow generation to repay acquisition-
related debt.

Revenue scale, geographic breadth and market presence should
counterbalance some of the near-term revenue growth headwinds
presented by a weaker Euro and low steel prices.  Moody's also
anticipates that LKQ will maintain a good liquidity profile
characterized by consistent free cash flow generation and
revolver availability, as a buffer against the business
challenges.

The negative outlook incorporates the higher financial risk from
plans to fund the PGW and Rhiag acquisitions with debt, and the
relatively short time between the Rhiag and PGW acquisitions.
The negative outlook also reflects Moody's concern that a
continued broadening of product offerings exposes the company to
areas where their competitive position is weaker and margins are
lower.

The absence of another sizable debt financed acquisition while
the company integrates Rhiag and PGW while using free cash flow
generation to reduce debt levels could lead to a stabilization of
the ratings outlook.

Although unlikely over the near-term, ratings could be upgraded
if LKQ were to meaningfully reduce absolute debt levels
subsequent to the closing of the PGW and Rhiag acquisitions while
reducing the pace of acquisition activity to enable time for
acquisition integration.  In addition, Moody's belief that LKQ's
pace of growth through acquisitions has abated away from larger
market expansion transactions toward bolt-on level transactions
to fill-out the company's regional exposure and product offerings
could also lead to upward ratings momentum.  In addition to the
above, consideration for a higher rating could result from
debt/EBITDA being maintained at approximately 2.0x and retained
cash flow/net debt of about 35% while maintaining a good
liquidity profile.

Factors that could lead to a downgrade of the ratings include
complications in the integration of acquisitions or additional
debt financed acquisitions which increase leverage.  Debt/EBITDA
approaching 3.5x, retained cash flow/net debt approaching 15%,
EBITA/interest coverage below 4x, or a significant deterioration
in liquidity could cause downward ratings pressure.

The principal methodology used in these ratings was Global
Automotive Supplier Industry published in May 2013.

LKQ Corporation, headquartered in Chicago, Illinois, is a leading
provider of alternative and specialty parts to repair and
accessorize automobiles and other vehicles.  LKQ has operations
in North America, the United Kingdom, the Netherlands, Belgium,
France, Australia and Taiwan.  The company offers its customers a
broad range of replacement systems, components, equipment and
parts to repair and accessorize automobiles, trucks, and
recreational and performance vehicles.  Revenues for the fiscal
year ended Dec. 31, 2015 totaled approximately $7.2 billion.  LKQ
acquired Rhiag, an Italian-based aftermarket parts distributor
and is in the process of acquiring PGW, a U.S.-based
manufacturer, supplier and distributor of automotive glass
products.  Pro forma for these two acquisitions, annual revenues
total $9.2 billion.



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S P A I N
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ABENGOA SA: Judge OKs Moratorium Amid Debt Restructuring Talks
--------------------------------------------------------------
Katie Linsell at Bloomberg News reports that a Spanish judge
approved Abengoa SA's application for more time to win investor
support for a EUR9.4 billion (US$10.7 billion) debt restructuring
plan.

The ruling puts a hold on all repayments until Oct. 28 while the
company seeks a debt deal, Bloomberg says.  Abengoa said in a
regulatory filing on April 6 the firm won backing for a
standstill from more than 75% of lenders last month and the
Seville judge's decision makes that binding on all lenders,
Bloomberg relates.

Abengoa wants the breathing space to give it time to shore up
support for the restructuring plan and avoid becoming Spain's
largest corporate failure, Bloomberg notes.

                        About Abengoa

Spanish energy giant Abengoa S.A. is a leading engineering and
clean technology company with operations in more than 50
countries worldwide that provides innovative solutions for a
diverse range of customers in the energy and environmental
sectors.  Abengoa is one of the world's top builders of power
lines transporting energy across Latin America and a top
engineering and construction business, making massive renewable-
energy power plants worldwide.

As of the end of 2015, Abengoa, S.A. was the parent company of
687 other companies around the world, including 577 subsidiaries,
78 associates, 31 joint ventures, and 211 Spanish partnerships.
Additionally, the Abengoa Group held a number of other interests
of less than 20% in other entities.

On Nov. 25, 2015, in Spain, Abengoa S.A. announced its intention
to seek protection under Article 5bis of Spanish insolvency law,
a pre-insolvency statute that permits a company to enter into
negotiations with certain creditors for restricting of its
financial affairs.  The Spanish company is facing a March 28,
2016, deadline to agree on a viability plan or restructuring plan
with its banks and bondholders, without which it could be forced
to declare bankruptcy.

On Feb. 24, 2016, Abengoa Bioenergy US Holding, LLC and five
other U.S. units of Abengoa S.A. each filed a voluntary petition
for relief under Chapter 11 of the United States Bankruptcy Code
in the United States Bankruptcy Court for the Eastern District of
Missouri.  The cases are pending before the Honorable Kathy A.
Surratt-States and are jointly administered under Case No. 16-
41161.

Abengoa, S.A., and 24 of its subsidiaries filed Chapter 15
petitions (Bankr. D. Del. Case Nos. 16-10754 to 16-10778) on
March 28, 2016, to seek U.S. recognition of a standstill
agreement with creditors and its restructuring proceedings in
Spain.  Christopher Morris signed the petitions as foreign
representative.  DLA Piper LLP (US) represents the Debtors as
counsel.


BANKIA: S&P Raises Long-Term Counterparty Credit Ratings to 'BB+'
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it raised its long-
term counterparty credit ratings on Spain-based Bankia to 'BB+'
from 'BB', and on its parent company BFA Tenedora de Acciones
S.A.U. (BFA) to 'BB-' from 'B+'.  S&P also affirmed its 'B'
short-term ratings on both entities.  The outlook remains
positive.

S&P also raised to 'B+' from 'B' the issue ratings on
nondeferrable subordinated instruments issued by Bankia because
S&P revised up the stand-alone credit profile (SACP) to 'bb+'
from 'bb'.

The rating action reflects S&P's belief that Bankia is
successfully enhancing its funding and liquidity position by
further closing its commercial gap, accessing longer-term
financing sources, disposing part of its legacy public debt and
other liquid bonds, and selling problematic assets, including
real estate and nonperforming loans.  As a result of these
actions, the bank has successfully reduced its reliance on ECB
funding, which S&P considers to be extraordinary in nature and
short term despite its contractual maturity.  As of year-end
2015, funding from the ECB accounted for about EUR19.5 billion,
or less than 10% of Bankia's total funding, from EUR74.3 billion
at end-2012.

S&P therefore anticipates that total short-term financing,
including market repurchase agreements, will account for about
10%-15% of the bank's total funding base as of end-2016.  S&P
considers this level to be manageable overall, particularly as
liquid assets fully cover potential short-term financing risks.
S&P estimates its liquidity coverage ratio to account for about
1.03x as of end-2015--a level S&P expects to remain broadly
stable in the next 12-18 months.

Despite additional provisions to cover litigation costs related
to the bank's 2011 IPO, Bankia posted sound financial results in
2015.  This was also due to the large capital gains on bond
disposals that boosted BFA group's bottom-line performance.  The
expected lower contribution of this extraordinary income,
combined with the impact of low interest rates and declining
contribution from fixed income securities portfolios to the
group's net interest income, could drive some reduction in
operating profitability in 2016.  Operating results, however, are
likely to remain sound overall, with return on equity (ROE) at
about 8%-9%, benefitting from a further decline in cost of risk,
which S&P expect to stay in the 30-40 basis point (bp) range.

At the same time, asset quality measures have continued to
improve on the back of strong economic conditions and an
accelerated clean-up of the bank's credit portfolio.  Bankia's
nonperforming loans accounted for about 10.7% of total
outstanding credit at end-2015, down from about 14.8% as of end-
2013.  S&P expects this trend to continue in the next couple of
years while the economy maintains its steady growth path.  In
addition, Bankia is disposing most of its real estate asset
stock, which now accounts for a fairly limited 3% of total
credit.

Bankia has also successfully implemented its strategic plan.  In
S&P's view, this has allowed it to preserve its business
stability and stabilize its franchise, despite the high level of
financial stress it experienced between 2011 and 2013, thus
reducing its overall risk profile.  S&P anticipates that the
bank's next business plan will primarily focus on new initiatives
aimed at enhancing the group's commercial dynamism and ultimately
strengthening its profitability.  However, S&P don't expect the
new plan to increase Bankia's risk appetite or heighten its risk
profile.

The positive outlook reflects the possibility that S&P could
raise its long- and short-term ratings on Bankia by one notch in
the next 12-18 months if it continues to enhance its capital
position in line with its targets.  S&P currently estimates the
bank's risk-adjusted capital (RAC) ratio will account for about
6.8%-7.0% as of end-2015, following the successful implementation
of several actions.  S&P anticipates that organic capital
generation, combined with potential issuance of hybrid
instruments to comply with MREL requirements (minimum requirement
for own funds and eligible liabilities), could allow Bankia to
sustainably push its RAC ratio above 7% by end-2017.  Moreover, a
further reduction of economic risks in Spain could also benefit
S&P's view of Bankia's solvency.

S&P could revise the outlook to stable if it concluded that the
bank will not be able to achieve a sustainable RAC ratio above
7%. Specifically, this could occur if BFA were to start paying
significant dividends to the state, contrary to S&P's current
expectations that it would retain most of the earnings generated,
or if potential additional provisioning needs related to the
bank's IPO were to materialize.  This could be detrimental to the
expected evolution of the bank's capital position, in S&P's view.

The positive outlook on BFA mirrors that on Bankia.  An upgrade
of Bankia by one notch would trigger a two-notch upgrade of BFA.
In line with S&P's methodology, if a group credit profile is
'bbb-' or above, the gap between the rating on a nonoperating
holding company and its core operating company would reduce to
one notch.



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T U R K E Y
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GLOBAL ENERJI: Istanbul Court Suspends Debt Enforcement Process
---------------------------------------------------------------
Taylan Bilgic at Bloomberg News reports that Isiklar Enerji ve
Yapi Holding said in a public filing the court in Istanbul
suspended all debt enforcement proceedings against Global Enerji
Elektrik.

Isiklar holds a 15.78% stake in Global Enerji, Bloomberg
discloses.

Global Enerji Elektrik Uretimi A S owns and operates natural gas
and renewable energy sources power plants, and a steam/hot water
supply unit in Turkey.



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U K R A I N E
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KHRESCHATYK BANK: Declared Bankrupt Following Liquidity Woes
------------------------------------------------------------
Ukraine Today reports that Vice-Governor of the National Bank of
Ukraine (NBU) Kateryna Rozhkova announced that the NBU decided on
April 5, 2016, to include Khreschatyk Bank in the group of
insolvent banks.

"Late last week, the situation with the bank's liquidity sharply
worsened. Experiencing lack of funds, the bank made transfers
with delays, and was unable to handle the situation without the
shareholders' help," Ukraine Today quotes Ms. Rozhkova as saying
at a press conference on April 5.  "Taking this fact into account
and Khreschatyk's failure to meet capital liquidity requirements,
the NBU's board designated the bank as insolvent."

According to Ukraine Today, Ms. Rozhkova said the central bank
conducted talks with the shareholders, but they did not bring
expected results.

Managing Director of the Individuals' Deposit Guarantee Fund
Andriy Olenchyk, who was also present at the press conference,
said that the Fund had introduced an interim administration at
the bank in keeping with the NBU's decision on its insolvency,
Ukraine Today relates.

Khreschatyk Bank is based in Kyiv.



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U N I T E D   K I N G D O M
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MIZZEN MEZZCO: Fitch Affirms 'B+' Long-Term Issuer Default Rating
-----------------------------------------------------------------
Fitch Ratings has affirmed Mizzen Mezzco Limited's (MML) Long-
term Issuer Default Rating (IDR) at 'B+'. The Outlook is Stable.
Fitch has also affirmed the Long-term rating of the GBP189
million senior notes issued by MML's subsidiary, Mizzen Bondco
Limited (MBL) at 'B-'/'RR6'.

KEY RATING DRIVERS

IDR AND SENIOR DEBT

MML, a holding company, is the ultimate 100% parent of Premium
Credit Limited (PCL), the leading provider of insurance premium
finance in the UK and Ireland. MML's Long-term IDR is based on
Fitch's assessment of the overall credit risk profile of PCL, its
only operating entity, and on PCL's capacity to upstream
dividends. As this dividend flow is the only source of funds
available to service obligations within both MML and intermediate
subsidiary MBL, the ratings also consider the structural
subordination of these entities' debt to obligations within PCL.

The group's leverage and debt servicing requirements mean
potential for internal capital generation is limited, reducing
protection against unexpected losses. Funding also remains
reliant on the wholesale markets, although associated refinancing
risk was reduced in 2015 by the extension of the group's GBP1
billion securitization facility to September 2018.

Earnings lack diversification and are very dependent on lending
volumes, but their stability is enhanced by a high level of
repetitive business. Furthermore, asset quality is strong, with
loss experience consistently low, underpinned by both the short-
term nature of PCL's lending and the resilience of its monitoring
and recovery processes.

Fitch's assessment of PCL's creditworthiness also takes into
account its strong market position in premium finance, where it
benefits from over 25 years of experience and well-established
relationships with many of the sector's principal intermediaries.

The senior notes are rated two notches below MML's Long-term IDR,
in line with their 'RR6' Recovery Rating. The low recovery
expectations are mainly driven by the notes' structural
subordination to PCL's securitization facility, which encumbers
the majority of group receivables.

RATING SENSITIVITIES

IDR AND SENIOR DEBT

"MML's Long-term IDR is mainly sensitive to a change in our view
of PCL's creditworthiness, or its capacity to upstream dividends.
Evidence of increased risk appetite, for example through PCL
pursuing a more substantial volume of non-recourse lending, could
have a negative impact. Lower leverage and greater
diversification of funding could have positive influences."

The rating of MBL's senior notes is primarily sensitive to any
movement in their anchor rating, MML's Long-term IDR. A reduction
in asset encumbrance levels could also have a positive impact by
improving recovery prospects.


TATA STEEL: Welsh Gov't Can't Offer Tax Cuts to Port Talbot
-----------------------------------------------------------
Michael Pooler, Kiran Stacey and Henry Mance at The Financial
Times report that The Welsh government has said it cannot offer
significant tax cuts to the stricken Port Talbot steelworks
because of European Union rules.

Ministers are scrambling to find ways to help ease the costs for
the south Wales plant, which employs around 4,000 people, all of
whose jobs have been put at risk by Tata Steel's decision to sell
its UK business, the FT relates.

According to the FT, Sajid Javid, the business secretary, said on
April 3 he would back a temporary relief in business rates for
the plant, but that this was an issue for ministers in Cardiff.

Welsh ministers on April 4 however said they were hamstrung by EU
rules, which forbid state aid for certain industries, the FT
relays.

In a statement, the Labour administration, as cited by the FT,
said it could only offer a maximum of EUR200,000 over a three-
year period, against an annual estimated business rates bill of
GBP10 million.

Separately, The Telegraph's Alan Tovey reports that the
government on April 6 said talks on the future of Tata's UK steel
business between Mr. Javid and Cyrus Mistry, chairman of the
parent company, will be "wide ranging".

Mr. Javid flew to Mumbai on April 5 to meet the Tata chief as he
attempts to get a grip on the crisis engulfing Britain's steel
industry, The Telegraph relates.

According to The Telegraph, a spokesman for the Department for
Business, Innovation and Skills said Mr. Javid's aim was "to
secure as many jobs as possible" after Tata put its UK business
-- including its giant Port Talbot plant -- up for sale last
week, throwing doubts over the future of up to 40,000 British
jobs, The Telegraph notes.

The Government has pledged to offer support to secure a deal, but
has so far refused to say exactly how far it is prepared to go to
save jobs, The Telegraph states.

According to The Telegraph, Commodities group Liberty House is
the most high profile potential bidder to emerge so far.

There have also been reports Tata's UK business could need a cash
injection of as much as GBP300 million to keep it going, placing
further hurdles in the way of securing its future, The Telegraph
relays.

Other potential suitors are thought to include turnaround group
Greybull, which is expected any day to announce a deal to buy
Tata's Scunthorpe plant, and German industrial giant
ThyssenKrupp, The Telegraph discloses.

Tata Steel is the UK's biggest steel company.


TOWD POINT 2016-GRANITE 1: Moody's Rates Class G Notes (P)B1
------------------------------------------------------------
Moody's Investors Service has assigned provisional credit rating
to these Notes to be issued by Towd Point Mortgage Funding 2016-
Granite 1 plc:

  GBP Class A Floating Rate Note due July 2046, Assigned
   (P)Aaa (sf)
  GBP Class B Floating Rate Note due July 2046, Assigned
   (P)Aa1 (sf)
  GBP Class C Floating Rate Note due July 2046, Assigned
   (P)Aa2 (sf)
  GBP Class D Floating Rate Note due July 2046, Assigned
   (P)A1 (sf)
  GBP Class E Floating Rate Note due July 2046, Assigned
    (P)Baa1 (sf)
  GBP Class F Floating Rate Note due July 2046, Assigned
   (P)Ba1 (sf)
  GBP Class G Floating Rate Note due July 2046, Assigned
   (P)B1 (sf)

The GBP Class Z Subordinated Note due July 2046, the GBP [?]
Class X Note due July 2046 and the Senior Deferred Certificate,
Deferred Certificate 1, 2 and 3 have not been rated by Moody's.

The loans are backed by a pool of prime UK residential mortgages,
which were previously securitized assets within the Granite
Master Trust ("Granite") transaction currently held within the
Neptune Rated Warehouse and Neptune Unrated Warehouse.  NRAM Plc
sold the beneficial interest in the assets to Cerberus European
Residential Holdings B.V. which will further sell the beneficial
interest in the assets to Towd Point Mortgage Funding 2016-
Granite 1 plc (the "Transaction").  Moody's notes that following
the sale of NRAM Plc to Cerberus, NRAM Plc is likely to lose the
UK government guarantee which currently covers all unsubordinated
and unsecured wholesale debt and deposits of NRAM Plc.
Consequently, Moody's has factored into its analysis the effects
of the loss of the UK government guarantee by NRAM Plc.

                         RATINGS RATIONALE

The rating of the Notes is based on an analysis of the
characteristics of the underlying mortgage pool, sector wide and
originator specific performance data, protection provided by
credit enhancement, the roles of external counterparties
including the backup servicer and the structural features of the
transaction.

   Expected Loss and MILAN CE Analysis

Moody's determined the MILAN CE of [16.0]% and the portfolio
expected loss of [2.1]% as input parameters for Moody's cash flow
model, which is based on a probabilistic lognormal distribution.

Portfolio expected loss of [2.1]%: This is higher than the UK
Prime sector average of 1% and is based on Moody's assessment of
the lifetime loss expectation for the pool taking into account
(i) the collateral performance of NRAM Plc originated loans to
date, as provided by NRAM Plc and observed in Granite. [7.9]% of
the provisional pool (as of 31st December 2015) are 1 month or
more in arrears; (ii) the current macroeconomic environment in
the UK and the potential impact of future interest rate rises on
the performance of the mortgage loans and (iii) benchmarking with
comparable transactions in the UK market.

MILAN Credit Enhancement of [16.0]%: This is higher than the UK
Prime sector average of 9% and follows Moody's assessment of the
loan-by-loan information taking into account the following key
drivers (i) the loan characteristics including [42.5]% of the
provisional pool being Together loans for which an unsecured loan
balance is outstanding.  These are loans where the borrower
obtained a secured and an unsecured loan; (ii) the weighted
average current loan-to-value of [76.2]%, which is higher than
the average seen in the sector; and (iii) the historical
performance of the loans with [68.6]% of the loans in the pool
having been current over the last five years.

Moody's notes that the expected loss is higher for this
transaction compared to Neptune Rated Warehouse and is in line
with the assumption previously in place for Granite.  Prior to
the Granite asset sale to the Neptune Rated Warehouse the
expected loss in Granite was 2.1%.  The [10]bps increase in the
expected loss assumptions to [2.1]% from 2.0% between the Neptune
Rated Warehouse and Towd Point Mortgage Funding 2016-Granite1 Plc
is largely driven by the inclusion of loans more than 12 months
in arrears which were previously excluded from the Neptune Rated
Warehouse.

The MILAN Credit Enhancement is lower for this transaction
compared to Granite and is in line with the Neptune Rated
Warehouse.  Prior to the Granite asset sale to the Neptune Rated
Warehouse the MILAN Credit Enhancement in Granite was 19%.  The
reduction in the MILAN Credit Enhancement from 19.0% to [16.0]%
is largely driven by the additional information provided on the
number of months a loan has been current which was previously not
provided.

   -- Operational Risk Analysis

NRAM Plc will be the contractual servicer sub delegating all its
servicing to Bradford & Bingley plc ("B&B").  A back up servicer
(Homeloan Management Limited (Not rated) and Western Mortgage
Services Limited (Not rated)), and Back-Up Servicer Facilitator
(Wilmington Trust SP Services (London) Ltd) have been appointed
at closing.  The backup servicer is required to step in within 90
days and perform the duties of the servicer or delegated servicer
if, amongst other things, the servicer and/ or delegated servicer
is insolvent or defaults on its obligation under the servicing
agreement or sub delegated servicing agreement.  Moody's notes
that the B&B servicing platform is currently in the process of
being sold with Computershare being announced as the preferred
bidder. Should the sale of the B&B servicing platform to
Computershare be successful, B&B will continue as interim
servicer until the new long term servicing contract is in place
between NRAM Plc and the replacement service provider.

Citibank, N.A. (London Branch) (A1/(P)P-1/A1(cr)) is appointed as
cash manager. There will be no back up cash manager in place at
closing.  To help ensure continuity of payments the deal contains
estimation language whereby the cash flows will be estimated from
the three most recent servicer reports should the servicer report
not be available.

The collection account is held at National Westminster Bank PLC
("NATWEST") (A3/P-2/A3(cr)).  There is a daily sweep of the funds
held in the collection account into the transaction account.  In
the event NATWEST rating is below Baa3 the collection account
will be transferred to an entity rated at least Baa3.  The
transaction account is held at Citibank, N.A. (London Branch)
(A1/(P)P-1/A1(cr)) with a transfer requirement if the rating of
the account bank falls below A3.  Moody's has taken into account
the commingling risk within its cash flow modeling.

   -- Transaction structure

There will be no Liquidity Reserve Fund in place at closing.
Following the step up date (3 years from closing) the Liquidity
Reserve Fund will be equal to [1.7]% of the Class A outstanding
balance and can be used to pay senior fees and interest on class
A.  Prior to the step up date liquidity is provided via a 365 day
revolving Liquidity Facility equal to [1.7]% of the Class A
outstanding balance provided by Wells Fargo Bank, National
Association, London Branch (Wells Fargo Bank, N.A (Aa1/P-
1/Aa1(cr)).  At closing, the Liquidity Facility provides approx.
[3.0] months of liquidity to the Class A assuming Libor of 5.0%.
Principal can be used as an additional source of liquidity to
meet shortfall on senior fees and interest on the most senior
outstanding class.  In addition, Moody's notes that unpaid
interest on the Class B, C, D, E, F and G is deferrable.  Non-
payment of interest on the Class A notes constitutes an event of
default.

Interest on the notes (excluding Class A) are subject to a Net
Weighted Average Coupon (Net WAC) Cap.  Net WAC additional
amounts are paid junior in the revenue waterfall being the
difference between the class B, C, D, E, F and G coupon and the
Net WAC Cap. Net WAC additional amounts occur if interest
payments to the respective notes are greater than the Net WAC
Cap.  Moody's notes that the Net WAC additional amounts are not
part of the interest payment promise to the referenced Classes
and as such Moody's ratings assigned to the Class B, C, D, E, F
and G do not address the timely and/ or ultimate payment of such
payments.

   -- Interest Rate Risk Analysis

As there are no swaps in the transaction, Moody's has modelled
the spread taking into account the minimum margin covenant of
Libor plus [2.4]%.  Due to uncertainty on enforceability of this
covenant, Moody's has taken the view not to give full credit to
this covenant.  Instead, Moody's has stressed the interest rate
of the pool by assuming that loans revert to SVR yield equal to
Libor + 2.0%.

   -- Parameter Sensitivities

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed.  The
analysis assumes that the deal has not aged and is not intended
to measure how the rating of the security might migrate over
time, but rather how the initial rating of the security might
have differed if key rating input parameters were varied.
Parameter Sensitivities for the typical EMEA RMBS transaction are
calculated by stressing key variable inputs in Moody's primary
rating model. If the portfolio expected loss was increased from
[2.1]% of current balance to [6.3]% of current balance, and the
MILAN Credit Enhancement was increased from [16.0]% to [22.4]%,
the model output indicates that the Class A would still achieve
(P)Aaa assuming that all other factors remained equal.

Factors that would lead to an upgrade or downgrade of the
ratings:

Factors that would lead to a downgrade of the ratings include
economic conditions being worse than forecast resulting in worse-
than-expected performance of the underlying collateral,
deterioration in the credit quality of the counterparties and
unforeseen legal or regulatory changes.

Factors that would lead to an upgrade of the ratings include
economic conditions being better than forecast resulting in
better-than-expected performance of the underlying collateral.

The rating addresses the expected loss posed to investors by the
legal final maturity of the loan facilities.  Moody's ratings
only address the credit risk associated with the transaction.
Other non-credit risks have not been addressed, but may have a
significant effect on yield to investors.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
January 2015.

The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage.

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



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


* Fitch: Crossover Credits to Lead to EMEA Bond Issuance Recovery
-----------------------------------------------------------------
Fitch Ratings expects crossover credits and 'BB' issuers in the
European high-yield bond market to lead the recovery in new
issuance for 2016. Monetary policy stimulus will support the
rollover of maturing liabilities. This, together with equity
market recoveries and strong cross-border M&A volumes, will allow
corporate managers more tactical discretion to address
longstanding sectoral challenges such as global excess capacity,
technological disruption and weak pricing and volume trends.

Fitch has released its latest bi-annual EMEA Fitch 50 report,
offering in-depth analysis on crossover credits (rated between
'BBB-' and 'BB+') and those in the 'BB' rating category. This is
to help global high yield investors identify the key rating
drivers for issuers downgraded to speculative grade (fallen
angels) and upgraded to investment grade (rising stars).

This latest report complements the 'B+' and Below' EMEA Fitch 50
issued in October 2015 and draws more distinctions between the
cohorts of the European high-yield bond market. The report
includes 50 case studies discussing rating drivers for select
crossover credits including notable fallen angels such as Anglo
American Plc, ArcelorMittal SA, ThyssenKrupp AG and Tesco Plc.
Each case study examines the causes of recent rating actions, and
what it would take for each company to either be upgraded to
investment grade, or downgraded to speculative grade.

Since 2010, 19 Fitch-rated EMEA speculative-grade corporates have
been upgraded to 'BBB-' or above. Improvements in operating
performance, business profile or cost-saving programs have
boosted cash generation and reduced the leverage of companies
such as Pernod Ricard, GKN Holdings, Renault and Taylor Wimpey.
Industry consolidation and the need to provide wider product
offerings drove M&A activity in the building materials and
telecoms sectors, leading to the upgrades of Lafarge SA,
Cableurope and Kabel Deutschland.

However, slowing growth in emerging markets (EMs), commodity
price weakness and limited rating headroom for many EMEA
corporates amid an anaemic European recovery suggest that rating
risk remains weighted to the downside. 2015 witnessed a widening
in the disparity between EM and developed European corporates,
and faltering EM growth has now become the greatest risk to
corporate ratings.

Over the last year, downgrades in the Fitch rating portfolio have
dominated upgrades across all corporate sectors. The differential
between upgrades and downgrades has also reached its widest level
since 2011, driven by challenging conditions across emerging
markets and low commodity prices. These trends are likely to
maintain rating pressure on EMEA corporates in 2016.

The buffer that corporates have to absorb weaker performance at
their current ratings remains thin, although it is slowly
improving. At end-2015 median headroom to the tightest downgrade
guidelines for EMEA corporates was 5.1% compared with just 3% in
2014.

The report, Fitch 50 Europe, is available at www.fitchratings.com
or by clicking on the link above.


                            *********

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

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

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


                            *********


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

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

Copyright 2016.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000 or Nina Novak at
202-362-8552.


                 * * * End of Transmission * * *