TCREUR_Public/160421.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 21, 2016, Vol. 17, No. 078


                            Headlines


I T A L Y

ITALY: Atlante Fund to Buy Shares in Lenders to Avert Crisis
TELECOM ITALIA: Egan-Jones Cuts FC Sr. Unsecured Rating to B+


K A Z A K H S T A N

KAZTRANSOIL: S&P Affirms BB Long-Term CCR, Outlook Negative
* Fitch Publishes Peer Report on Largest Kazakh Banks


N E T H E R L A N D S

CELF LOAN: Moody's Lowers Rating on Class D Notes to B3
ENDEMOL SHINE: S&P Lowers Corporate Credit Rating to B-


N O R W A Y

NORSKE SKOGINDUSTRIER: Moody's Affirms Caa3 CFR, Outlook Neg.


R U S S I A

CB BFG-Credit: Placed Under Provisional Administration
NS BANK: Moody's Withdraws B3 Long-Term Deposit Ratings
PULS STOLITSY: Placed Under Provisional Administration
YUKOS OIL: Dutch Court Overturns US$50BB Award to Shareholders


S P A I N

CIRSA GAMING: S&P Affirms B+ CCR & Rates EUR450MM Notes B+
FTPYME TDA 4: Fitch Hikes Class B Debt Rating to BB+sf


S W E D E N

CORRAL PETROLEUM: S&P Assigns Prelim. B+ CCR, Outlook Stable


U K R A I N E

REAL BANK: Deposit Guarantee Fund Appoints Liquidator


U N I T E D   K I N G D O M

BESTWAY UK: Moody's Affirms B1 CFR, Outlook Stable
CORRAL PETROLEUM: Fitch Assigns B+(EXP) LT Foreign-Currency IDR
EMBLEM FINANCE 2: Fitch Cuts Credit-Linked Notes Rating to BB-
LIBERTY GLOBAL: Egan-Jones Hikes Sr. Unsecured Rating to BB+
OSPREY ACQUISITIONS: Fitch Affirms BB LT Issuer Default Rating

TATA STEEL: Bosses Draw Up Management Buyout Plan
* UNITED KINGDOM: Living Wage to Spur Company Bankruptcies


                            *********


=========
I T A L Y
=========


ITALY: Atlante Fund to Buy Shares in Lenders to Avert Crisis
------------------------------------------------------------
Thomas Hale, Martin Arnold and Rachel Sanderson at The Financial
Times report that Atlante, a new private initiative backed by the
Italian government, will buy shares in Italian lenders in a bid
to edge the sector away from a fully-fledged crisis.

Last week's announcement of the fund, which can also buy non-
performing loans, led to a welcome boost for Italian banks the FT
relates.

But Italian banks have made EUR200 billion of loans to borrowers
now deemed insolvent, of which EUR85 billion has not been written
down on their balance sheets, the FT notes.  A broader measure of
non-performing debt, which includes loans unlikely to be repaid
in full, stands at EUR360 billion, the FT says, citing the Bank
of Italy.

It has become much harder to directly bail out its financial
institutions, as other European countries did during the crisis,
the FT states.

Meanwhile, a new European-wide approach to bank failure, which
involves imposing losses on bondholders, is politically fraught
in Italy, where large numbers of bonds have been sold to retail
customers, according to the FT.


TELECOM ITALIA: Egan-Jones Cuts FC Sr. Unsecured Rating to B+
-------------------------------------------------------------
Egan-Jones Ratings Company downgraded the foreign currency senior
unsecured rating on debt issued by Telecom Italia SpA to B+ from
BB- on April 4, 2016.

Telecom Italia is an Italian telecommunications company
headquartered in Rome, which provides telephony services, mobile
services, and DSL data services.



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


KAZTRANSOIL: S&P Affirms BB Long-Term CCR, Outlook Negative
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'BB' long-term corporate credit rating on Kazakhstan-based oil
pipeline operator KazTransOil (KTO).  The outlook is negative.

The affirmation reflects S&P's view of an unchanged stand-alone
credit profile (SACP) of KTO, its strategic importance for its
parent KazMunayGas (KMG), as well as S&P's assessment that there
is a high likelihood that KTO would receive timely and sufficient
support from the government of Kazakhstan if needed.

KTO's strategic importance to the KMG group is underpinned, in
S&P's view, by the company's role as the main oil pipeline
network operator in the country, transporting more than 53% of
oil volumes in the country.  This also leads S&P to consider
KTO's role for the government as very important and the link
between the company and the government as strong, albeit
indirect.  However, the rating on KTO is constrained by the
rating on its parent, KMG (BB/Negative/--).

KTO's business risk profile benefits from a solid market position
and limited competition from rail and tanker transport, owing to
Kazakhstan's land-locked location, geographic isolation from the
Caspian Sea, and the low cost of pipeline transportation.

However, S&P believes the country risk in Kazakhstan is high, and
it considers tariff regulation to be opaque.  The KTO group has a
favorable debt structure, in S&P's view, given that all of its
outstanding debt is currently at the level of its joint venture.
KTO also enjoys good financial flexibility, thanks to its
adequate cash position, flexibility to defer most of its new
projects, and available borrowing capacity.  In 2016, S&P expects
KTO to continue generating strongly positive free operating cash
flow (FOCF) on the back of the tariff increases that took place
in 2015 and flat freight turnover.  S&P thinks that KTO's sizable
accumulated cash balances cover all existing investment projects
and allow for high dividend payouts.

The company's main weaknesses include its potential involvement
in new construction projects, which might result in weakened
credit metrics and a more aggressive financial risk profile, and
its exposure to potential dividend pressure from the parent.

The negative outlook reflects that on the parent, KMG, and that
if S&P lowered the rating on Kazakhstan and simultaneously on KMG
by one notch, it would most likely lead to a similar rating
action on KTO.

In addition, indications of negative interference from the parent
or the state or a significant deterioration of KTO's SACP could
lead S&P to review its assessment of the likelihood of support
from the state or parent, and to lower the ratings.

S&P would likely revise the outlook on KTO to stable if S&P took
a similar action on KMG.


* Fitch Publishes Peer Report on Largest Kazakh Banks
-----------------------------------------------------
Fitch Ratings on April 19 disclosed that it has published a peer
report on six large Kazakh Banks accounting for a 65% share of
Kazakhstan's banking sector assets. These include Halyk Bank of
Kazakhstan (HB), Kazkommersbank (KKB), Tsesnabank, Subsidiary
Bank Sberbank of Russia JSC (SBK), Bank Centercredit and ATF Bank
JSC.

The report discusses the recent increase in pressure on these
banks' credit profiles from the economic slowdown in Kazakhstan
and a sharp devaluation of its currency, the tenge. Asset
quality, while already undermined by significant deep-seated
legacy problem loans in some banks, is expected to deteriorate
due to significant foreign currency lending. However, Fitch
expects that most large Kazakh banks will try to defer
recognition of problems (helped by some flexibility in regulatory
loan classifications) to limit provisioning due to modest capital
buffers and limited core profitability.

As a result of recently limited lending activity, liquidity
remains robust at most covered banks, chiefly placed in U.S.
dollar accounts with the National Bank of Kazakhstan. Refinancing
risk has reduced, reflecting past repayments of foreign debt,
while strong political and business connections facilitate access
to state funding sources for the large banks. However, further
deterioration of some of the weaker banks could increase default
risks for senior creditors, potentially leading to downgrades.

Most of the banks' Issuer Default Ratings (IDRs) are driven by
their Viability Ratings, which are in the 'b' category. This
reflects their weak standalone profiles, with Halyk (rated
'BB'/Outlook Stable) being a notable exception with better asset
quality, moderate FX lending, and robust capital and
profitability buffers. SBK's IDR is 'BB+'/Outlook Negative,
reflecting parental support prospects from Sberbank of Russia
('BBB-'/Outlook Negative).



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


CELF LOAN: Moody's Lowers Rating on Class D Notes to B3
-------------------------------------------------------
Moody's Investors Service announced that it has taken a variety
of rating actions on these notes issued by CELF Loan Partners
B.V.:

  EUR54 mil. (current balance of EUR14,198,712) Class B Senior
   Secured Floating Rate Notes, Affirmed Aaa (sf); previously on
   Dec. 18, 2014, Upgraded to Aaa (sf)

  EUR30.5 mil. Class C-1 Senior Secured Deferrable Floating Rate
   Notes, Upgraded to A3 (sf); previously on Dec. 18, 2014,
   Upgraded to Baa1 (sf)

  EUR10 mil. Class C-2 Senior Secured Deferrable Fixed Rate
   Notes, Upgraded to A3 (sf); previously on Dec. 18, 2014,
   Upgraded to  Baa1 (sf)

  EUR16 mil. Class D Senior Secured Deferrable Floating Rate
   Notes, Downgraded to B3 (sf); previously on Dec. 18, 2014,
   Affirmed B1 (sf)

  EUR12.5 mil. (current rated balance of EUR4.1 mil.) Class Y
   Combination Notes, Downgraded to B2 (sf); previously on
   Dec. 18, 2014, Affirmed Ba3 (sf)

  EUR15 mil. (current rated balance of EUR7.3 mil.) Class Z
   Combination Notes, Upgraded to A2 (sf); previously on Dec. 18,
   2014, Upgraded to A3 (sf)

CELF Loan Partners B.V., issued in April 2005, is a
Collateralised Loan Obligation ("CLO") backed by a portfolio of
mostly high yield senior secured European loans.  The portfolio
is managed by CELF Advisors LLP.  This transaction has ended its
reinvestment period in July 2011.

                         RATINGS RATIONALE

The upgrade of the class C notes is primarily a result of
deleveraging since June 2015.  As a result, the class A notes
have been fully redeemed and the class B notes have paid down
approximately EUR40 million (74% of initial balance) resulting in
increases in over-collateralization levels.  As of the March 2016
trustee report, the Class B and C overcollateralization ratios
are reported at 519.49%, and 134.85% respectively compared with
218.29% and 125.28% in June 2015.

The downgrade of the class D notes is primarily a result of
deterioration in the credit quality of the remaining collateral
pool during the same period.  Credit quality as measured by the
weighted average rating factor, or WARF deteriorated to 3774 in
March 2016 from 3344 in June 2015.  The class D over-
collateralization level additionally decreased and as of the
March 2016 trustee report is reported at 104.33% compared with
107.23% in June 2015.  The class D par value test is currently
out of compliance.

The ratings on the combination notes address the repayment of the
rated balance on or before the legal final maturity.  For the
Class Z notes, the 'rated balance' at any time is equal to the
principal amount of the combination note on the issue date times
a rated coupon of 1.5% per annum accrued on the rated balance on
the preceding payment date, minus the sum of all payments made
from the issue date to such date, of either interest or
principal.  For the Class Y, the rated balance at any time is
equal to the principal amount of the combination note on the
issue date minus the sum of all payments made from the issue date
to such date, of either interest or principal.  The rated balance
will not necessarily correspond to the outstanding notional
amount reported by the trustee.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.  In its base
case, Moody's analyzed the underlying collateral pool as having
performing par and principal proceeds balance of EUR69.6 million,
a defaulted par of EUR10.4 million, a weighted average default
probability of 19.40% (consistent with a WARF of 3434 over a
weighted average life of 3.80 years), a weighted average recovery
rate upon default of 47.62% for a Aaa liability target rating, a
diversity score of 10 and a weighted average spread of 3.68%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool.  The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool.  In each case, historical and market
performance and a collateral manager's latitude to trade
collateral are also relevant factors.  Moody's incorporates these
default and recovery characteristics of the collateral pool into
its cash flow model analysis, subjecting them to stresses as a
function of the target rating of each CLO liability it is
analyzing.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in December 2015.

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

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed a lower weighted average recovery rate in
the portfolio.  Moody's ran a model in which it reduced the
weighted average recovery rate by 5%; the model generated outputs
that were one notch lower than the base-case results for class C
and two notches lower for class D.  Class B was not significantly
impacted.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
notes, in light of uncertainty about credit conditions in the
general economy.  CLO notes' performance may also be impacted
either positively or negatively by 1) the manager's investment
strategy and behavior and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties due to embedded ambiguities.

Additional uncertainty about performance is due to:

  1) Portfolio amortization: The main source of uncertainty in
     this transaction is the pace of amortization of the
     underlying portfolio, which can vary significantly depending
     on market conditions and have a significant impact on the
     notes' ratings.  Amortization could accelerate as a
     consequence of high loan prepayment levels or collateral
     sales the collateral manager or be delayed by an increase in
     loan amend-and-extend restructurings.  Fast amortization
     would usually benefit the ratings of the notes beginning
     with the notes having the highest prepayment priority.

  2) Recoveries on defaulted assets: Market value fluctuations in
     trustee-reported defaulted assets and those Moody's assumes
     have defaulted can result in volatility in the deal's over-
     collateralization levels.  Further, the timing of recoveries
     and the manager's decision whether to work out or sell
     defaulted assets can also result in additional uncertainty.
     Moody's analyzed defaulted recoveries assuming the lower of
     the market price or the recovery rate to account for
     potential volatility in market prices.  Recoveries higher
     than Moody's expectations would have a positive impact on
     the notes' ratings.

In addition to the quantitative factors that Moody's explicitly
modeled, qualitative factors are part of the rating committee's
considerations.  These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio.  All information available
to rating committees, including macroeconomic forecasts, input
from other Moody's analytical groups, market factors, and
judgments regarding the nature and severity of credit stress on
the transactions, can influence the final rating decision.


ENDEMOL SHINE: S&P Lowers Corporate Credit Rating to B-
-------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on MediArena Acquisition B.V., the parent
of Netherlands-based Endemol Holdings B.V. and Shine Group, to
'B-' from 'B'.

S&P also lowered its issue ratings on the group's senior secured
first-lien term debt due 2021 to 'B-' from 'B' and revised down
S&P's recovery rating to '4' from '3', indicating its expectation
for average recovery prospects (30%-50%; upper half of the range)
in the event of a payment default.  S&P lowered its issue rating
on MediArena's $457 million second-lien term loan maturing in
2022 to 'CCC' from 'CCC+'.  The recovery rating on this
instrument is unchanged at '6', indicating S&P's expectation of
negligible (0%-10%) recovery in the event of a payment default.
S&P placed all the ratings on CreditWatch with negative
implications.

"The downgrades reflect our view that the group's credit quality
has weakened following unexpectedly high cash outflows from
operations reported in the year to Dec. 31, 2015.  Working
capital investment of EUR79 million during the year, on top of
EUR129 million in one-time integration, legal, and restructuring
costs, resulted in a free operating cash flow (FOCF) of negative
EUR89 million and total cash outflow for the year of EUR122
million. Reported EBITDA of EUR116 million was lower than we
expected because a number of shows were delivered late and others
were cancelled.  As a result, we estimate that Standard & Poor's-
adjusted EBITDA totaled about EUR190 million in 2015, the debt-
to-EBITDA ratio was about 9x, and the EBITDA-to-interest cover
ratio was not quite 1.5x," S&P said.

"Endemol Shine Group has announced that broadcasters and
alternative video-on-demand providers have successfully
commissioned its most popular franchises, which include Big
Brother, MasterChef, The Voice, and Black Mirror.  Nevertheless,
we consider that intense competition in end markets and the
group's strategy of investing in working-capital intensive
distribution business, growth projects, and production of
scripted shows will continue to affect operating profitability
and limit EBITDA growth in 2016 and beyond.  We anticipate that
the group's EBITDA margins (as adjusted by Standard & Poor's)
will remain below 12% for the next three years, and the EBITDA-
to-interest ratio will remain below 2x.  Similarly, we expect
higher interest costs resulting from a higher debt burden and
volatile working capital to hamper FOCF further.  We do not
expect MediArena to return to positive cash generation for at
least the next two years", S&P said.

"We estimate that MediArena's Standard & Poor's-adjusted debt
totaled about EUR1.7 billion at the end of 2015.  This ratio
includes about EUR1.06 billion-equivalent first-lien debt and
about EUR390 million of the second-lien term loan.  It further
includes about EUR55 million of deferred considerations, and
EUR144 million of the net present value of operating leases.  We
deduct surplus cash of about EUR37 million that we estimate was
available to the group at the end of 2015, net of the amount
attributable to overdraft and cash-pooling positions, and
restricted cash," S&P noted.

S&P's assessment of Endemol Shine Group's business risk profile
reflects the group's strong positions in its key markets: the
U.K., the U.S., Southern Europe, and The Netherlands.  Its global
presence in more than 30 countries and its diverse library of
more than 3,000 television programs provide further support to
the business risk assessment.  At the same time, S&P anticipates
that the Standard & Poor's-adjusted EBITDA margin will remain
depressed at less than 12% in 2016-2018, compared with 9.7% in
2015 and 13.7% in 2014.  This is because of the lower
profitability of Shine's operations compared with Endemol's and
the group's ongoing investment in the low-margin growth projects
that underpin the Endemol Shine Group's competitive advantage in
the medium-to-long term.

The group operates in the highly competitive and fragmented film
and television programming industry, and is exposed to the
inherent volatility of viewers' tastes and cyclical spending on
advertising.  Endemol Shine Group partly mitigates such risks by
generating a high proportion of recurring revenues from highly
successful shows.  The reason S&P believes in the recurring
nature of such revenues is that both Endemol and Shine have
successfully produced follow-up series for their most successful
shows or sold them to other countries in the past, and are likely
to continue doing so.

The rating on MediArena is at the same level as its stand-alone
credit profile.  S&P assess MediArena as a nonstrategic
subsidiary for its 50% parent Twenty-First Century Fox Inc.
because, at the moment, the two entities remain legally,
operationally, and financially separate.  In particular, there
are no specific incentives, such as cross-default clauses or
guarantees, which would require a long-term financial commitment
by Fox to MediArena.  S&P also believes that Fox's joint control
of MediArena, alongside financial sponsor Apollo Global, may
limit prospects for any support from Fox should MediArena fall
into financial difficulty.

S&P expects Endemol Shine Group's Standard & Poor's-adjusted
EBITDA will grow by about 5%-7% a year over the 2016-2018
forecast period, primarily thanks to growth in the television
shows and series production market.

S&P's base case assumes:

   -- GDP growth of 2.0%-2.2% per year in 2016-2017 in the U.K.
      and 2.3%-2.5% in the U.S., with more subdued growth
      prospects of about 1.5% in the eurozone.  This will
      underpin advertising spending that fuels broadcasters'
      demand for content.  Increased demand for content from
      broadcasters, pay-TV, and video-on-demand providers will be
      balanced by fierce competition among content providers.

   -- Flat revenue growth in 2016 and about 2% annually
      thereafter, supported by expansion into the scripted
      segment and online digital business and tempered by intense
      competition.

   -- Adjusted EBITDA margin at about 10%-11% over the forecast
      period.  S&P expects that investment in working capital
      will be exacerbated by funding growth in the distribution
      business and scripted production.

   -- Capital expenditures (capex) of about 1% of revenues.

   -- S&P understands that MediArena will not be required to make
      any deferred consideration payments in 2016, and S&P
      prudently assumes about EUR5 million annual spending on
      small bolt-on acquisitions, although S&P is not aware of
      any concrete acquisition plans.

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

   -- Standard & Poor's-adjusted debt to EBITDA of about 9x in
      2016 decreasing to about 8x by Dec. 31, 2018, mainly due to
      EBITDA growth and annual mandatory amortization payments of
      about EUR10.5 million.

   -- EBITDA interest coverage of about 1.3x-1.5x over the
      forecast period.

S&P will resolve the CreditWatch within 90 days, once it has
assessed the potential impact of the 2015 results and underlying
trends on the group's future leverage metrics, liquidity, cash
flow, business prospects, and profitability.

S&P may lower the ratings if it concludes that MediArena's
capital structure is unsustainable in the long term, its
liquidity has weakened further, or FOCF is unlikely to turn
positive in the medium term.



===========
N O R W A Y
===========


NORSKE SKOGINDUSTRIER: Moody's Affirms Caa3 CFR, Outlook Neg.
-------------------------------------------------------------
Moody's Investors Service has affirmed Norske Skogindustrier
ASA's Corporate Family Rating at Caa3 and changed the Probability
of Default Rating to Caa3-PD/ LD (Limited Default) from Ca-PD.
The action follows the completion of the debt exchange offer
after the successful vote of the note holders (76% successful
participation level), which now allows to repurchase the
remainder of the 2017 notes, as announced on April 11, 2016.
This qualifies a distressed exchange under Moody's definition.
The outlook on all ratings is negative.

Moody's also affirmed the Caa2 (LGD2) rating of the EUR290
million senior secured notes due December 2019 issued by Norske
Skog AS, the Ca (LGD5) rating of the senior unsecured notes due
2016 and 2033 issued by Norske Skog as well as the Caa3 (LGD4
from LGD3) rating of the senior unsecured notes due 2021 and
2023, all issued by Norske Skog Holdings AS.

Concurrently, Moody's assigned a definitive Ca (LGD5) rating to
the senior unsecured Exchange Notes due December 2026 by Norske
Skogindustrier ASA.  Further, Moody's assigned a definitive C
(LGD6) rating to the senior subordinated Perpetual Notes and has
withdrawn the rating of the exchanged 2017 senior secured notes
issued by Norske Skog.

                         RATINGS RATIONALE

Norske Skog successfully termed out the 2017 senior secured notes
following the termination and revision of the original exchange
offer on March 21, 2016, which subsequently excluded the 2016
notes. The revised exchange offer has been amended and the
holders of the 2017 senior unsecured bonds were offered to
receive 46.8% of nominal value as unsecured exchange notes due
2026 bearing a cash interest rate of 3.5% and a PIK interest rate
of 3.5%, a 36.2% of nominal value as perpetual exchange notes,
bearing 2% interest subject to deferral rights.

Liquidity remains tight even after the successful exchange of the
2017 notes, the newly placed Securitization Facility provided by
GSO and Cyrus (EUR100 million, part of which was used to
refinance an existing facility) and the additional rights issue
of EUR15 million as Norske reported a further reduction in
liquidity as per December 2015 to NOK536 million from NOK699
million as per September 2015, in addition to the imminent need
to repay the remaining outstanding amount of the 2016 bonds
(NOK1.044 billion) and the expectation of improved albeit
relatively weak cash flow generation in the next few quarters.
The exchange offer is expected to only result in a pro-forma
total debt reduction of around NOK180 million (as Moody's treats
the perpetual notes as debt).  Therefore, the capital structure
remains weak if the underlying business does not improve
significantly and sustainably.

The Caa3 CFR and negative outlook reflects Norske Skog's weaker
than expected profitability and cash flow generation in 2015.
Its high exposure to the mature publication paper market in
Europe and Australia weighs on the company's ability to improve
profitability.  Recently announced investments in growth
projects, namely biogas and tissue production as well as the
acquisition of a New Zealand-based wood pellet production to
diversify away from the traditional publication paper market are
not sufficient to materially offset challenging market conditions
in its paper operations.  Moody's notes that these investments
will only moderately improve profit generation over time.
Nevertheless, the incremental profits from the investments as
well as slight improvements in paper prices during 2016 should
help to improve profitability, which, subject to the successful
repayment of the remaining 2016 notes in June (NOK1.044 billion),
would significantly ease the immediate refinancing pressure until
2019 and would therefore be credit positive.

The continued weak profitability is reflected in a negative
EBITDA as adjusted by Moody's as of LTM ending September 2015.
Also, Moody's forecasts that, despite recent capacity reductions
in newsprint and magazine production, demand for publication
paper will continue to decline in the coming years.
Historically, pricing power has been subdued while raw material
costs remain elevated and add pressure to profitability and cash
generation. This will make it challenging for Norske Skog to
materially improve profit and cash flow generation and to
meaningfully reduce its debt load to more sustainable levels.
However, for the period of 2016 Moody's expects a recovery in the
group's profitability levels due to improvements in paper prices
which could help stabilize Norske Skog's liquidity profile.

                     STRUCTURAL CONSIDERATIONS

Pursuant to the revised debt exchange offer, the Caa2 rated
EUR290 million senior secured notes issued by Norske Skog AS is
rated 1 notch above the CFR, reflecting the relatively higher
recovery expectations compared to the structurally and
contractually subordinated legacy unsecured exchange notes and
the remaining unsecured legacy notes.  This is because the
secured notes enjoy first priority ranking pledges over assets
and bank accounts, land charges on lands and buildings from
Australian and New Zealand subsidiaries as well as upstream
guarantees from all material subsidiaries.  The Caa3 rating of
the senior notes maturing in 2021 and 2023 is in line with the
CFR and reflective of the junior ranking to the sizeable amount
of secured bonds but seniority over the remaining portion of the
unsecured debt due to upstream guarantees from operating
entities, placing them ahead of other unsecured debt at the
holding company level, namely the 2016 and 2033 as well as the
new Ca rated senior unsecured exchange notes due 2026.  Lastly,
the perpetual notes are contractually subordinated to all other
debt in the group and therefore rated C.

                              Outlook

The negative outlook reflects that, despite the exchange offer
and the availability of the new Securitization facility, the
liquidity situation will remain tight given the need to repay the
remaining outstanding 2016 bonds in June and the limited
liquidity reserves of Norske Skog.  This leaves little cushion if
cash flow generation was weaker than expected in the first half
of 2016.

What could change the rating up/down

The outlook could be stabilized if sufficient funding for the
June 2016 maturity is procured and Norske Skog was able to
improve its profitability to sustainable levels and generate
meaningful positive free cash flow allowing the company to de-
leverage over time.  However, given Norske Skog's highly
leveraged capital structure and diminished profitability and cash
flow generation, Moody's considers that an upgrade of the ratings
would require substantial profit improvement and increase in
cash-flow generation.

Conversely, the rating of the CFR and the existing bonds could be
downgraded if the company is not able to provide sufficient
funding for the for the senior unsecured notes due in June 2016.
This would heighten the company's refinancing risk and the risk
of a disorderly payment default and a bankruptcy, which could
imply low recovery prospects for creditors.  In addition, given
the currently unsustainable capital structure, the company could
be downgraded if leverage is not going to improve from current
levels over the next one or two years, as this would expose
Norske Skog again to the threat of a default or distressed
exchange.

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

Norske Skogindustrier ASA, with headquarters in Oslo, Norway, is
among the world's leading newsprint and magazine producers with
production in Europe and Australasia.  During 2015 Norske Skog
recorded sales of around NOK11.6 billion (approximately
EUR1.23 billion).



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


CB BFG-Credit: Placed Under Provisional Administration
------------------------------------------------------
In compliance with Article 18926 of the Federal Law "On
Insolvency (Bankruptcy)", by its Order No. OD-1207, dated
April 12, 2016, the Bank of Russia appointed a provisional
administration to manage credit institution Commercial Bank
BFG-Credit, LLC (CB BFG-Credit LLC) for a six-month term from
April 12, 2016.

The powers of executive bodies of CB BFG-Credit LLC are suspended
for the term of activity of the provisional administration.

It is a priority of the provisional administration to conduct due
diligence of the bank to find out its genuine financial position.


NS BANK: Moody's Withdraws B3 Long-Term Deposit Ratings
-------------------------------------------------------
Moody's Investors Service has withdrawn NS Bank's ratings:

   -- Long-term local-currency deposit rating of B3
   -- Long-term foreign-currency deposit rating of B3
   -- Short-term local and foreign-currency deposit ratings of
      Not-Prime
   -- Long-term Counterparty Risk Assessment of B2(cr)
   -- Short-term Counterparty Risk Assessment of Not-Prime(cr)
   -- Baseline credit assessment (BCA) and adjusted BCA of b3

At the time of the withdrawal, the long-term bank deposit ratings
carried a negative outlook.

                         RATINGS RATIONALE

Moody's has withdrawn the rating for its own business reasons.

Headquartered in Moscow, Russia, NS Bank reported total assets of
RUB57.7 billion, total shareholders' equity of RUB6.3 billion and
net income of RUB361.6 million, according to unaudited
International Financial Reporting Standards as of June 30, 2015.


PULS STOLITSY: Placed Under Provisional Administration
------------------------------------------------------
The Bank of Russia, by its Order No. OD-1216, dated April 13,
2016, revoked the banking license of credit institution
Commercial Bank Puls Stolitsy from April 13, 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, because the capital adequacy ratio of this credit
institution was below 2% and its equity capital dropped below the
minimum authorized capital value established by the Bank of
Russia as of the date of the state registration of the credit
institution, and taking into account the repeated application
within a year of measures envisaged by the Federal Law "On the
Central Bank of the Russian Federation (Bank of Russia)".

Commercial Bank Puls Stolitsy failed to adequately assess the
risks assumed as the quality of assets was bad.  The competent
assessment of credit risk at the supervisor's request revealed a
full loss of the bank's equity capital.

The management and owners of the credit institution did not take
proper action to bring its activities back to normal.  Under
these circumstances, the Bank of Russia performed its duty on the
revocation of the banking license of the credit institution in
accordance with Article 20 of the Federal Law “On Banks and
Banking Activities'.

The Bank of Russia, by its Order No. OD-1217, dated April 13,
2016, has appointed a provisional administration to Commercial
Bank Puls Stolitsy for the period until the appointment of a
receiver pursuant to the Federal Law "On the Insolvency
(Bankruptcy)" or a liquidator under Article 23.1 of the Federal
Law "On Banks and Banking Activities".  In accordance with
federal laws, the powers of the credit institution's executive
bodies are suspended.

Commercial Bank Puls Stolitsy 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 not more than 1.4
million rubles per depositor.

According to the financial statements, as of April 1, 2016,
Commercial Bank Puls Stolitsy ranked 545th by assets in the
Russian banking system.


YUKOS OIL: Dutch Court Overturns US$50BB Award to Shareholders
--------------------------------------------------------------
Thomas Escritt at Reuters reports that in a victory for Moscow, a
Dutch court on April 20 annulled an international tribunal's
award of US$50 billion in compensation to shareholders of defunct
Russian oil giant Yukos, saying the tribunal had no jurisdiction.

Former Yukos shareholders said they would appeal what they said
was a surprising decision and continue their efforts to seize
Russian state assets around the world after what they say was a
government campaign to destroy their company, Reuters relates.

But Russia's legal team said the Dutch ruling would pave the way
for the long-running saga to be brought to a definitive end,
Reuters notes.

Once controlled by Mikhail Khodorkovsky, then one of Russia's
richest men, Yukos was bankrupted after he fell out with Russian
leader Vladimir Putin and the government began demanding payment
of huge sums in back taxes, Reuters recounts.

State oil company Rosneft took over most of its assets, Reuters
relays.

                        About Yukos Oil

Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- was an
open joint stock company under the laws of the Russian
Federation.  Yukos was involved in energy industry substantially
through its ownership of its various subsidiaries, which own or
are otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.

The Company filed for Chapter 11 protection on Dec. 14, 2004
(Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed
on Feb. 24, 2005, by the Hon. Letitia Z. Clark.  A few days
later, the Russian Government sold its main production unit
Yugansk to a little-known firm Baikalfinansgroup for US$9.35
billion, as payment for US$27.5 billion in tax arrears for 2000-
2003.  Yugansk eventually was bought by state-owned Rosneft,
which is now claiming more than US$12 billion from Yukos.

On March 10, 2006, a 14-bank consortium led by Societe Generale
filed a bankruptcy suit in the Moscow Arbitration Court in an
attempt to recover the remainder of a US$1 billion debt under
outstanding loan agreements.  The banks, however, sold the claim
to Rosneft, prompting the Court to replace them with the state-
owned oil company as plaintiff.

On April 13, 2006, court-appointed external manager Eduard Rebgun
filed a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775),
in an attempt to halt the sale of Yukos' 53.7% ownership interest
in Lithuanian AB Mazeikiu Nafta.

On May 26, 2006, Yukos signed a US$1.49 billion Share Sale and
Purchase Agreement with PKN Orlen S.A., Poland's largest oil
refiner, for its Mazeikiu ownership stake.  The move was made a
day after the Manhattan Court lifted an order barring Yukos from
selling its controlling stake in the Lithuanian oil refinery.

On Aug. 1, 2006, the Hon. Pavel Markov of the Moscow Arbitration
Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and
declared what was once Russia's biggest oil firm bankrupt.

On Nov. 23, 2007, the Russian Trading System and Moscow
Interbank Currency Exchange stopped trading Yukos shares after
the company formally ceased to exist.  Mr. Rebgun completed the
company's liquidation process after Russia's Federal Tax Service
has entered Yukos' liquidation on the Uniform State Register of
Legal Entities.

As reported in the Troubled Company Reporter-Europe on Nov. 14,
2007, the Moscow Arbitration Court entered an order closing the
liquidation proceedings of Yukos, 15 months after it was declared
bankrupt on Aug. 1, 2006.



=========
S P A I N
=========


CIRSA GAMING: S&P Affirms B+ CCR & Rates EUR450MM Notes B+
----------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'B+'
corporate credit rating on Spain-based Cirsa Gaming Corp.

At the same time, S&P assigned its 'B+' issue rating and recovery
rating of '3' to the proposed EUR450 million senior unsecured
notes maturing in 2021.  The recovery rating implies meaningful
recovery of 50%-70% in a default scenario.

S&P also affirmed the issue and recovery ratings on the EUR500
million senior unsecured notes due 2023 at 'B+' and '3',
respectively.

"The affirmation follows Cirsa's announcement that it plans to
issue EUR450 million senior unsecured notes, maturing in 2021,
and use the proceeds to refinance the existing EUR450 million
senior unsecured notes due 2018," said Standard & Poor's credit
analyst Eugenia Korobova.

The successful complete refinancing of Cirsa's EUR450 million
outstanding unsecured notes supports the company's liquidity by
terming out near-term debt maturities.  In addition, S&P
anticipates that the transaction will moderately lower interest
costs and slightly improve adjusted metrics, positioning them at
levels S&P considers commensurate with the existing ratings.

Additionally, Cirsa recently released its report for the fourth
quarter ending Dec. 31, 2015, which reflected strong growth in
EBITDA and FOCF, in line with S&P's expectations.  In S&P's
opinion, this good operating performance continues to position
Cirsa comfortably at the current rating level.

S&P's assessment of Cirsa's weak business risk profile reflects
regulatory risks in some of its markets and rising competition in
the global gaming sector.  These weaknesses are partly offset by
the company's leading position in the Spanish and Italian slot
machine markets and its average absolute profitability.

Cirsa's significant financial risk profile reflects the company's
moderate leverage, strong FOCF, and comfortable interest coverage
ratios.  S&P do not expect leverage to deviate significantly from
management's stated target of debt to EBITDA of 2.5x-3.0x on a
reported basis.

S&P takes one notch from the 'bb-' anchor to reflect the
potential downside risks to cash flows in Cirsa's Latin American
markets. These are not factored into S&P's base-case forecast.
For example, Mexico is to implement new regulations, and the
details and effects of the changes have not yet been made clear.
In addition, the company does not hedge its exposure to Latin
American countries, which could potentially pose risks given the
largely instable economies, leading to significant currency
fluctuations.  Cirsa's acquisitive nature and stated target
leverage ratio of 2.5x-3.0x also caps S&P's view of its financial
risk profile at the current level.

The company has material exposure to Argentina -- about 25% of
EBITDA -- which is rated 'B-'.  The group's operations have
passed our sovereign stress test, which include a drop in GDP,
depreciation of the local currency, and higher inflation,
resulting in S&P's rating Cirsa above the sovereign.  In S&P's
view, Cirsa has enough financial flexibility to withstand a
period of sovereign stress in Argentina.

The stable outlook reflects S&P's expectation that Cirsa will
maintain financial metrics at a level commensurate with a
significant financial risk profile.  Specifically, S&P
anticipates that the company will maintain adjusted debt to
EBITDA between 3x-4x and adjusted FOCF to debt of about 10%-15%.
The stable outlook also signifies that S&P expects Cirsa's
liquidity to remain adequate over the next 12 months.

Although adjusted ratios continue to strengthen within the
significant financial risk profile category, S&P sees an upgrade
as unlikely due to Cirsa's financial policy and acquisitive
nature, the country risks inherent in its Latin American
operations, and the lack of currency hedging.

S&P would consider a downgrade if Cirsa's operating performance
in 2016 unexpectedly weakened, or if it undertook a major debt-
financed acquisition.  A weakening of liquidity to less than
adequate levels could also result in a downgrade.


FTPYME TDA 4: Fitch Hikes Class B Debt Rating to BB+sf
------------------------------------------------------
Fitch Ratings has upgraded FTPYME TDA CAM 4, FTA's class B notes
and affirmed the remaining notes as follows:

  EUR42.2 million Class A2: affirmed at 'Asf'; Outlook Stable

  EUR34.1 million Class A3(CA): affirmed at 'Asf'; Outlook Stable

  EUR66 million Class B: upgraded to 'BB+sf' from 'CCCsf';
  Outlook Stable

  EUR38 million Class C: affirmed at 'CCsf'; Recovery Estimate
  (RE) 0%

  EUR29.3 million Class D: affirmed at 'Csf'; RE 0%

FTPYME TDA CAM 4, FTA, is a granular cash flow securitization of
a static portfolio of secured and unsecured loans granted to
Spanish small- and medium-sized enterprises by Caja de Ahorro del
Mediterraneo (now part of Banco de Sabadell).

KEY RATING DRIVERS

Low, Stable Delinquencies

Loans in arrears of more than 90 days account for 0.9% of the
portfolio, up from 0.6% one year ago. Delinquencies have been
declining from a peak in early 2013 and have been at low levels
for the last two years.

Continued Deleveraging

The pari-passu class A2 and A3(CA) notes have received EUR43.4m
of principal proceeds between them in the last 12 months.
Consequently, credit enhancement has increased for all notes over
the same period. While this has led to an upgrade for the class B
notes, the impact for the class C notes remains limited as these
notes are significantly undercollateralized.

Payment Interruption Risk

The highest achievable note rating in this transaction is capped
at 'Asf' due to exposure to payment interruption risk. The
reserve fund remains depleted and the structure thus lacks a
source of liquidity if the servicer defaults and has to be
replaced. The class D notes, used to fund the reserve fund, are
affirmed at 'Csf' as Fitch does not expect the reserve fund to be
replenished back to its target amount before the maturity of the
notes.

Note Interest Deferral

Payment of the class C notes' interest is currently subordinated
to principal repayment on the notes in the transaction's combined
waterfall due to the breach of the relevant cumulative default
trigger. The class C notes' deferred interest currently totals
EUR0.9m. Given limited headroom on the class B interest deferral
trigger, Fitch views it likely that interest on the class B notes
will also be deferred in the near future. Fitch expects any class
B deferred interest to be repaid by the legal final maturity of
the notes.

RATING SENSITIVITIES

A 25% increase in the obligor default probability or a 25%
reduction in expected recovery rates would not lead to a
downgrade of the notes.

CORRECTION

Fitch has found that, as part of the analysis performed for the
previous surveillance review (rating action commentary dated 3
June 2015), the excess spread for rising interest rate scenarios
was calculated incorrectly. This resulted in too low a figure.
When corrected, this would have increased the excess spread, and
in relation to the class B tranche this would have led to higher
model-implied ratings. Model-implied ratings are one of several
factors considered by rating committees. This was not a key
rating driver for the rating actions listed above.

DUE DILIGENCE USAGE

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

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

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

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



===========
S W E D E N
===========


CORRAL PETROLEUM: S&P Assigns Prelim. B+ CCR, Outlook Stable
------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its
preliminary 'B+' long-term corporate credit rating to Sweden-
based oil refining company Corral Petroleum Holdings AB (publ),
the parent company of Preem AB (publ).  The outlook is stable.

At the same time, S&P assigned its preliminary 'B' issue rating
to the proposed $700 million senior payment-in-kind (PIK) toggle
notes.  The recovery rating is '5', indicating S&P's expectation
of recovery prospects in the lower half of the 10%-30% range, in
the event of a payment default.

Final ratings will depend on S&P's receipt and satisfactory
review of all final transaction documentation.  Accordingly, the
preliminary ratings should not be construed as evidence of final
ratings.  If Standard & Poor's does not receive final
documentation within a reasonable time frame, or if final
documentation departs from materials reviewed, S&P reserves the
right to withdraw or revise its ratings.  Potential changes
include, but are not limited to, utilization of loan proceeds,
maturity, size and conditions of the debt instruments, financial
and other covenants, security, and ranking.

The ratings reflect Preem's relatively high exposure to one key
asset (Lysekil refinery) and the company's participation and
relative concentration in the highly cyclical refining industry,
which implies an inherent volatility in product spread, and to a
much lower extent, volumes.  This leads to highly volatile
profitability that weighs down our assessment of the financial
risk profile and, to some extent, the business risk profile.

Preem has a strong position in Sweden (about 80% of the country's
refining capacity).  Given the limited size of the domestic
market, about 65% of its refined products are exported to other
important European markets (Scandinavia, France, Germany, the
U.K.) and, to a lesser extent, the U.S.  This mitigates its
exposure to a single market.

The European refining industry has historically suffered from
excess capacity, and increasing European imports from the Middle
East exacerbate competition, exposing independent players in
particular.  However, Preem produces more diesel than gasoline;
diesel has a more favorable demand-supply market than gasoline in
Europe.  Europe produces sufficient gasoline for its structural
needs, but imports diesel from outside Europe due to structurally
insufficient production.  Furthermore, in the Swedish market its
diesel sales benefit from a competitive advantage and are
somewhat protected by Scandinavia's environmental standards for
transportation fuels, which are higher than those for the rest of
Europe.

Sweden currently offers refiners a tax incentive of about SEK0.42
per liter ($0.05) to sell cleaner diesel fuel (miljoklass 1;
Mk1), rather than the EU-standard Mk3 fuel (eurodiesel).  Preem
is the largest producer of Mk1 diesel, which is used in the
Nordic region.  In S&P's view, there is limited risk of the
capacity to produce Mk1 diesel increasing.

Preem is able to process a relative large share of heavy sour
crude oil, which is normally cheaper than Brent crude oil.  For
example, in 2015, oil from the Urals cost about $1.5 less per
barrel than Brent oil.  Preem's flexibility in sourcing crude
allows it to seize opportunities in terms of pricing and reduce
feedstock costs.  S&P estimates that this increased profits by
$95 million in 2015.

Despite these positive factors, as a refiner, Preem suffers from
highly volatile profitability and depends on product crack
spreads (the price differential between crude oil and the refined
product) developments, which are reinforced by the fluctuating
supply-demand balance in the industry.  Spreads can quickly
fluctuate by a wide margin.  Furthermore, Preem is of limited
size by global standards.  It has two refineries totaling 345
thousand barrel per day (kbpd), and moderate-to-low
diversification.  One refinery contributes the majority of
profits (64% of its daily capacity and higher profits per
barrel).  These factors dent S&P's assessment of the business
risk profile, which S&P assess as weak overall.

Preem is owned by a single investor, Mr. Mohammed Hussein Al-
Amoudi, a Saudi Arabian national who owns numerous and much
larger assets.  The company's financial policies, in terms of
leverage targets or shareholder distributions, may not be fully
set, in S&P's view.  For example, large dividends in 2005 limited
the company's financial flexibility in a period of high capital
expenditure, which is negative.  However, when the operating
environment has been weaker, the owner has a track record of
support and has invested material amounts into the business.
This is positive for Preem and counterbalances the potential for
important dividends or increases in leverage, in S&P's view.
Notably, there are restrictions in various loan documentation
regarding permitted payments.  The bond documentation does not
allow for dividend payments outside the restricted group.

Preem's aggressive financial risk profile is constrained by
significant swings in profits; thus, credit metrics and free
operating cash flow (FOCF) generation depend on volatile industry
conditions.  The industry is capital-intensive, given the need to
constantly maintain and keep assets competitive.  As a result of
these factors, FOCF can fluctuate widely; it was negative by more
than SEK700 million in 2012, but positive by over SEK1 billion in
2013 and about SEK750 million in 2014.

S&P assumes that the company will use the $700 million cash
proceeds of proposed issuance to pay down the 2017 bonds, which
totaled $613 million.  Including the transaction, Preem will also
have access to a $1.5 billion (about SEK13 billion) revolving
credit facility (RCF), of which about SEK3.8 billion would be
drawn on the day of issuance.  Together, this should amount to
total gross debt of about SEK12.5 billion when the transaction
closes.

The capital structure also contains a shareholder loan and
shareholder subordinated notes, both maturing in 2021, which S&P
treats as equity under its methodology given their deep
subordination and sufficient provisions that prevent these
instruments from becoming due and payable until any senior
existing and future debt has been fully repaid.

Because S&P assess the business risk profile as weak, it do not
give cash credit in its metrics calculations.  Nevertheless, S&P
takes cash balances into account in S&P's liquidity analysis.

In S&P's base case, it assumes:

   -- High utilization rates at both refineries, at more than 90%
      on average over the next two years at Lysekil and more than
      80% at Gothenburg.

   -- Average crack spreads of about 20% in 2016 on both diesel
      and gasoline, which is lower than in 2015; S&P views 2015
      as an exceptionally strong year in the refining industry
      and anticipate that industry conditions will return to more
      normal levels in 2016.

   -- Annual capital expenditure (capex) just over SEK1.5 billion
      in 2016.  This compares with about SEK950 million in 2015
      and SEK800 million in 2014.

   -- No dividends over the next two years.

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

   -- Debt to EBITDA of 3x-4x, in 2016.

   -- EBITDA of more than SEK3 billion in 2016 and somewhat lower
      in 2017.

   -- Positive FOCF in 2016 of about SEK1 billion.

The stable outlook reflects S&P's expectation that Preem will
maintain adequate liquidity, mainly through sizable availability
under the RCF, and that industry fundamentals, particularly
diesel crack spreads, will enable Preem to achieve EBITDA of
about SEK3 billion in 2016 and 2017, Standard & Poor's-adjusted
debt to EBITDA of 3x-4x, and FOCF of about SEK1 billion in 2016.

S&P could lower the rating if crack spreads weaken materially,
operating expenses are greater than it expects, or the company
has unplanned downtime, such that performance deteriorates,
leading to total adjusted debt to EBITDA above 5x for a prolonged
period.

Given Preem's concentrated product and asset base, and limited
scale by global standards, S&P currently views an upgrade as
unlikely.  S&P could, however, raise the ratings if adjusted debt
to EBITDA was to be sustainably reduced below 3x under S&P's
assumed mid-cycle market conditions. Absolute debt below SEK8
billion could also support an upgrade.



=============
U K R A I N E
=============


REAL BANK: Deposit Guarantee Fund Appoints Liquidator
-----------------------------------------------------
Ukrainian News Agency reports that the Deposit Guarantee Fund has
appointed Andrii Fedorchenko as the liquidator of Real Bank to
replace Valerii Yermak.

Mr. Fedorchenko is a leading specialist in bank insolvency
settlement at the provisional administration and bank liquidation
department, Ukrainian News discloses.

On May 21, 2014, the National Bank of Ukraine decided to
liquidate Real Bank, taken into provisional administration from
March 3 to June 2, 2014, Ukrainian News relates.



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


BESTWAY UK: Moody's Affirms B1 CFR, Outlook Stable
--------------------------------------------------
Moody's Investors Service has upgraded to Ba3 from (P)B1 the
senior secured ratings assigned to London-based retailer Bestway
UK Holdco Limited's for the Term Loan A due 2020, Term Loan B due
2021 and revolving credit facility (RCF) due 2019.  Concurrently,
Moody's has affirmed Bestway UK's B1 corporate family rating and
has upgraded the PD Probability of Default rating to B1-PD from
B2-PD.  The outlook on the ratings is stable.

"The upgrade of Bestway UK's senior secured rating to Ba3
reflects the substantial debt reduction the company has achieved
in the last 18 months.  This has not only largely compensated for
the weaker EBITDA generation of the company's wholesale business,
but also reduced senior leverage," says Sven Reinke, a Moody's
Vice President - Senior Credit Officer and lead analyst for
Bestway UK.

"This debt reduction also improves the position of senior secured
creditors in the capital structure, as the proportion of
subordinated debt has increased from around 22% of balance sheet
debt in October 2014 to around 29% in April 2016," Mr Reinke
adds.

LIST OF AFFECTED RATINGS

Upgrades:

Issuer: Bestway UK Holdco Limited
  Probability of Default Rating, Upgraded to B1-PD from B2-PD
  Backed Senior Secured Bank Credit Facility, Upgraded to Ba3
   (LGD3, 39%) from (P)B1 (LGD3, 35%)

Affirmations:

Issuer: Bestway UK Holdco Limited
  Corporate Family Rating, Affirmed B1

Outlook Actions:

Issuer: Bestway UK Holdco Limited
  Outlook, Remains Stable

                         RATINGS RATIONALE

   -- UPGRADE OF SENIOR SECURED RATING TO Ba3

The upgrade of the senior secured rating to Ba3 recognizes
positively the cash injections and debt reduction Bestway UK has
executed to date as well as the priority position of the secured
loans in Bestway's creditors waterfall.

Bestway UK substantially reduced the senior secured debt that it
raised to fund the acquisition, reducing the senior secured term
loans by GBP190 million -- thereof GBP160 million voluntarily -
from GBP650 million at the completion of the acquisition, to
GBP460 million in April 2016.  The company predominately used
dividends from international businesses, besides internal cash
flow generation.

Bestway UK's parent company Bestway (Holdings) Limited is the
majority shareholder of Bestway Cement Ltd with a 58% stake and
United Bank Ltd. (Caa1 stable) with a 59% stake.  Both businesses
are not part of the financing group and are therefore only of
limited importance to the credit rating considerations.  There
are no cross-defaults, cross-acceleration or cross-guarantees
between the Bestway UK financing group and the international
businesses. While there is no obligation to use dividends to
reduce the debt level at Bestway UK, the Bestway Group has
demonstrated its commitment to accelerating the deleveraging of
the UK business in the last 18 months.

   -- AFFIRMATION OF B1 CORPORATE FAMILY RATING

The affirmation of the B1 CFR reflects Bestway UK's leverage,
which remains relatively high following the acquisition of the
Well Pharmacy business in October 2014.  The company's high
leverage is also driven by its subordinated shareholder loan of
GBP183.2 million (the property notes), which Moody's treats as
debt rather than equity, as it does not meet the rating agency's
strict criteria for equity treatment.

Bestway UK's parent company Bestway (Holdings) Limited -- which
is not part of the financing group -- transferred real estate
assets valued at GBP183.2 million to Bestway UK and made a
shareholder loan available to Bestway UK at the same amount.
Accordingly, based on the last-12-months reported EBITDA of
GBP100.5 million to January 2016 and including additional debt
repayments of GBP51.6 million over the last two months, Bestway
UK's gross adjusted leverage -- including the subordinated
shareholder loan - stands at 6.7x.  This is high for the rating
category, but acceptable considering the equity-like
characteristics of the shareholder loan.

Bestway UK's financial profile has not improved materially as the
debt repayment was largely offset by the weak performance of the
wholesale business.  For instance senior leverage has decreased
to 4.8x from 4.9x at the time of the acquisition.  The wholesale
business's EBITDA margins, before discretionary directors
remuneration adjustments, have gradually reduced from 3.1% in
fiscal year 2011 to 2.6% in fiscal year 2015, and 1.8% for the
first eight months of fiscal year 2016 (July 2015 -- February
2016).  Bestway Wholesale has been negatively impacted by the
deflationary environment but also by increased competition.

On the other hand, the pharmacy business performed strongly and
in line with the company's forecast.  Well Pharmacy's sales
increased by 5.8% to GBP532.8 million and EBITDA rose by 3.1% to
GBP48.1 million during the first eight months of fiscal year 2016
(July 2015 -- February 2016), compared with GBP503 million and
GBP46.7 million during the same period in the prior fiscal year.
The improvement was driven by rising NHS subscriptions and strong
cost control.  The transformation from Co-operative-Group-branded
pharmacy branches to Well Pharmacy has been completed
successfully.

The B1 CFR primarily reflects (1) the company's strong market
positions in both UK businesses -- Bestway Wholesale and Well
Pharmacy; (2) its large store and distribution network, with 63
wholesale depots and 798 pharmacy branches across the UK; and (3)
the pharmacy business's defensive and cash generative nature
supported by attractive long-term dynamics.

The main constraints to the rating include (1) the wholesale
business's exposure to non-affiliated independent retailers that
are under pressure from multiples such as Tesco (Ba1 stable) and
Sainsbury's (not rated); and (2) the pharmacy business's reliance
on NHS-funded prescriptions and services that could come under
pressure due to public budget constraints.

   -- LIQUIDITY

Moody's considers the company's liquidity to be adequate.  At the
end of February 2016, the company had a cash balance of GBP32.5
million, as well as access to a RCF of GBP75 million, of which
GBP72 million was undrawn.  The RCF facility alongside the senior
secured loans contain financial covenants for leverage and
interest coverage, for which the company had relatively little
headroom of around 25% and 11%, respectively, at December 2015.
Despite the debt repayments of approximately GBP51.6 million
since the end of December 2015, Moody's expects the covenant
headroom will remain tight due to increasingly demanding covenant
levels which were built on better performance assumptions.  The
rating agency also assumes that a covenant breach would be
mitigated in an orderly fashion without a default of the debt
instruments.

The company's revenues are not seasonal and cash flows are
generally evenly distributed throughout the year.  However,
Bestway Wholesale's cash flows are affected by the timing of
cigarette purchases.  The highest working capital requirement is
usually in April as cigarettes are purchased before the UK
government's budget announcement and increases in excise duty.
While Moody's does not expect an increase of the drawings under
the RCF, the rating agency's assessment of adequate liquidity
assumes access to the RCF at all times.

                     STRUCTURAL CONSIDERATIONS

The B1 CFR and B1-PD PDR are assigned at the level of Bestway UK
Holdco Limited, which is also the borrower of the GBP650 million
senior secured term loans.  Bestway Northern Limited is a
co-borrower of the term loans.  The Ba3 rating (LGD3) assigned to
the loans is one notch above the CFR.  This reflects the fact
that the senior secured loans rank ahead of the GBP183.2 million
property notes provided by Bestway UK's parent company Bestway
(Holdings) Limited where interest is compounded and not being
paid in cash.

The senior secured loans and the RCF are secured on pledges of
the share capital and all material assets of the co-borrowers and
guarantors, including Bestway Wholesale's real estate portfolio
that is valued at GBP407 million, and Well Pharmacy's licenses.
Guarantors comprise at least 85% of gross assets and EBITDA of
the financing group.

                 RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's expectations that Bestway
UK's financial profile will continue to gradually improve mostly
on the back of a stable performance and free cash flow generation
at the pharmacy business, which offsets the weaker performance of
the wholesale business.  The stable outlook does not reflect the
possibility of an accelerated deleveraging driven by the
continued use of dividend streams from the international
businesses.  The rating and outlook could come under positive
pressure if Bestway UK were to apply these dividends to further
reduce financial debt.

               WHAT COULD CHANGE THE RATING UP/DOWN

Moody's could consider upgrading Bestway UK's rating if the
company were to successfully execute its strategy, such that it
improves the operating profitability of the pharmacy business and
withstands the competitive and market driven pressures that are
currently impacting the wholesale operations.  An upgrade would
also require an improvement in the company's credit metrics, such
that its adjusted debt/EBITDA -- including the property note --
approaches 5.0x.  With at least stable operational performance,
positive rating pressure could be accelerated if the company
continues to apply dividends from the international business to
reduce financial debt.

Bestway UK's rating could be lowered if the wholesale business
were to continue suffering from further like-for-like sales and a
further decline of its operating margins.  Downward pressure
could also develop as a result, for example, of underperformance
of the pharmacy business driven by larger than anticipated NHS
budget constraints.  Quantitatively, Moody's could downgrade the
rating if Bestway UK's adjusted debt/EBITDA -- including the
property note -- were to increase above 7.0x on a sustainable
basis.

                      PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Retail
Industry published in October 2015.

Headquartered in London, UK, Bestway UK is a family-owned
conglomerate that fully owns the UK's second-largest wholesaler,
Bestway Wholesale as well as the UK's third-largest pharmacy
chain, Well Pharmacy, which it acquired from the Co-operative
Group in October 2014.


CORRAL PETROLEUM: Fitch Assigns B+(EXP) LT Foreign-Currency IDR
---------------------------------------------------------------
Fitch Ratings has assigned Corral Petroleum Holdings AB (CPH) an
expected Long-term Foreign-Currency Issuer Default Rating (IDR)
of 'B+' with Stable Outlook. Fitch has also assigned Corral's
proposed payment-in-kind toggle notes (PIK) issue an expected
rating of 'B(EXP)'. The final ratings will be contingent on
successful issuance of PIK notes and the receipt of final
documents conforming to information already received.

The ratings are supported by the high complexity of CPH's
refinery in Lysekil, increasing biodiesel sales, and strong
liquidity. The ratings are constrained by the inherent volatility
of the refining earnings, weaker business diversification than
peers, and high leverage.

CPH is a holding company, and owns Preem AB, a medium-sized,
Sweden-based refining company that operates two refineries (89%
of EBITDA) and a retail network (11% of EBITDA). CPH accounts for
80% and 29% of Swedish and Nordic refining capacity,
respectively. The marketing segment includes 341 Preem-branded
stations and 165 diesel truck stops. CPH's ultimate shareholder
is Mohammed Al-Amoudi, who acquired the company in 1994.

KEY RATING DRIVERS

Good-Quality Assets

Preem operates two refineries, the 220,000 barrel per day (bpd)
Preemraff Lysekil plant and the 125,000 bpd Premraff Gothenburg
site. Lysekil is a hydrocracking refinery with a Nelson
complexity index (NCI) of 10 using mainly sour crude (81% of
total feedstock). The Gothenburg refinery operates as a
hydroskimming plant with an NCI of 7.1, processing primarily
(91%) sweet crude. The average NCIs in Europe and North America
were 9 and 11.7, respectively, in 2014.

Fitch views the high complexity of the Lysekil refinery
positively, as it allows the company to benefit from higher yield
of light and middle distillates (diesel and gasoline account for
74% of output) and the ability to process lower-quality crude
blends such as Urals.

Hydroskimming margins were on average $US5.1/bbl lower than
hydrocracking margins in 2011-2015 in northwest Europe, which
limits the profitability of the Gothenburg site. However, use of
renewable feedstock and large storage capacity, coupled with
coastal location and access to a variety of crude oil blends
allowed CPH to reach gross margins at Gothenburg that were
$US3.1/bbl higher in 2011-2015 than the average for hydroskimming
refineries in northwest Europe.

Fitch views Preem's overall asset quality as good. Its coastal
location allows it to use short-term possibilities for crude oil
supply and shipping products to external customers, but also
exposes Preem to significant global competition, where trade in
oil products is increasing.

Focus on Refining

CPH's retail network accounts for about 11% of EBITDA, which is
positive for the credit profile because of the greater stability
of marketing earnings than refining margins. However, the
concentration of earnings on supply and trading of refined
products means CPH's business diversification is weaker than for
peers such as Polski Koncern Naftowy ORLEN S.A. (BBB-/Stable) or
MOL Hungarian Oil and Gas Company Plc (BBB-/Stable), which also
own petrochemical and upstream assets and have strong retail
networks.

CPH's closest peer is Turkiye Petrol Rafinerileri A.S. (BBB-
/Stable), which is also predominantly focused on supply and
trading of oil products. Its ratings are supported by the growing
Turkish fuel market and lower leverage on a through-the-cycle
basis.

Biofuel Supports Results

CPH is the largest supplier of ultra-low-sulphur diesel fuel in
Sweden, with a sulphur content of less than 5 parts per million,
significantly below the Euro 4 requirement of 50 parts per
million. CPH's biofuel, which qualifies as Swedish Environmental
Class 1 diesel, attracts tax incentives from the Swedish Tax
Agency of about EUR0.60 per litre. CPH produces 160,000 cubic
metres of the biofuel, which translates into an annual tax
incentive of SEK900 million.

"The current Swedish regulation will remain until 2018 and is
then likely to be replaced with a new permanent system. Although
there is a risk that tax incentives will be lower after 2018, we
assume the difference would not be material due to European
government's support for environmentally friendly policies. CPH
also plans to increase biofuel output, which may help offset
potential negative tax changes."

Volatile Cash Flows and Credit Metrics

Comparability of results between periods is hindered by inventory
effects. Fuel prices tend to lag behind oil prices. Therefore
when oil prices fall, as in 2014, fuel prices at the time of sale
reflect lower crude oil prices than the price at the time of
refining. This reduces gross profit. The impact on cash flow from
operations and free cash flow is typically offset by working
capital inflows.

"Nevertheless, the inherent volatility of refining margins
coupled with the inventory effect has resulted in significant
swings in CPH's historical leverage metrics. FFO net adjusted
leverage was 5.0x in 2015 and we expect the ratio to be 3.6x-4.6x
in 2016-2018. Our forecasts, prepared on a current cost of supply
basis assuming hydrocracking margins in northwest Europe of
around $US5/bbl and Fitch's oil price deck ($US35/bbl in 2016,
$US45/bbl in 2017 and $US55/bbl in 2018), show much more stable
cash flows. However, a period with low refining margins and more
volatile oil prices may result in high inventory effects and
working capital swings affecting CPH's credit metrics. The
volatility is largely offset by deleveraging plans and good
liquidity."

Manageable Capex Requirements

Annual capex requirements total around SEK1billion. Spending in
2016 and 2017 will be higher, between SEK1.5billion and
SEK2.4billion, mainly due to turnaround at the Gothenburg
refinery and investment in vacuum distillation equipment at
Lysekil, planned to be completed in 4Q18 (expected payback period
of 3 years). CPH also plans to further increase its retail
network in the medium term. The next turnaround at Lysekil will
be in 2019.

Favourable Refining Environment

CPH's net refining margins in 2015 increased to $US6.62bbl
($US4.12/bbl in 2014), in line with the improved European
refining environment. Fitch expects refining margins to moderate
in 2016 from the highs of 2015, but they are unlikely to revisit
the lows of 2H13 and 1H14, due to depressed oil prices supporting
demand for fuel and lower cost of oil for refineries' own
consumption.

Oversupply in Europe to Return

"The longer-term outlook for Europe's refining sector is more
uncertain. Excess refining capacity, structural decline in fuel
consumption because of growing engine efficiency and
environmental policies, and stronger competition from new
refineries in the Middle East are likely to put pressure on the
European refining sector in the medium to long term. CPH supplies
fuel mainly to mature markets such as the UK, Sweden and the
Netherlands (35%, 16% and 14% of total supply and trading
revenue, respectively), where we expect demand to shrink due to
structural factors such as improved energy efficiency and greater
use of renewable energy."

Competition in Crude to Benefit European Refiners
"The lifting of the US ban on oil exports in December 2015
resulted in the Brent-WTI differential collapsing, which improved
the competitiveness of European refining companies compared with
their US peers. We expect the Brent-WTI differential to remain
nil on average over the rating horizon, although with significant
volatility."

The discount of Urals crude oil to Brent widened in 4Q15 and
exceeded $US3.5/bbl in late October and November 2015, compared
with the average of $US1.3/bbl in 2012-2014. The widening gap
reflected higher availability of Russian crude in the Baltic Sea
region as production in Russia reached post-Soviet highs. Saudi
crude oil deliveries to PKN and Preem in early November might
have also contributed to the widening Urals discount. This is
positive for the refinery in Lysekil, which mainly uses Russian
crude oil.

Consolidated Rating Approach

Preem has a $US1.5billion borrowing base and revolving credit
facility, which contains a cross-default provision. CPH's
subordinated PIK toggle notes contain a cross-payment default
provision. The senior lenders at Preem level will negotiate in
good faith before opting to accelerate, but once that happens all
the debt becomes due and payable. Fitch has therefore ascribed a
Long-term IDR to the restricted group comprising the issuer and
its subsidiaries, the most important of which is Preem. The
shareholder loans were excluded from the debt amount, as they are
structured to have equity-like characteristics.

High Recoveries

In an enforcement scenario all or most of the exposure at Preem
level can be satisfied through collection of receivables and
marketing of crude and inventories. Although the banks are over-
collateralized and may enforce against the refinery and other
assets, if necessary, recovery analysis indicates that the
creditors at CPH level should be able to comfortably achieve RR5
recoveries, even in a distressed scenario.

The subordinated PIK toggle notes make up a much higher
proportion of permanent debt, effectively financing long-term
assets, than for leveraged finance transactions rated in the 'B'
category, where the second lien or mezzanine debt layer normally
only accounts for 15%-25% of long-term debt. These proportions
result in better recoveries for Corral, as a large part of the
proceeds from fixed assets should be available for distribution
among the subordinated PIK toggle note holders.

KEY ASSUMPTIONS

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

-- Brent price of $US35/bbl in 2016, $US45/bbl in 2017,
    $US55/bbl in 2018 and $US65/bbl in 2019

-- North-west Europe hydrocracking margin of $US5.5/bbl in 2016,
    $US5/bbl in 2017-2019

-- US dollar/Swedish kroner exchange rate of 8.9 in 2016, 8.2 in
    2017, 7.5 thereafter

-- Capital expenditure of SEK1.5billion in 2016, SEK2.4 billion
    in 2017 and SEK1.1billion in 2018

RATING SENSITIVITIES

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

-- Reduction in gross debt (revolving credit facility and PIK
    toggle notes)

-- Higher business diversification leading to less volatile cash
    flows

-- FFO-adjusted net leverage sustained below 3.5x

-- Quicker-than-expected refining capacity reduction in Europe
    leading to improved outlook for margins

Negative: Developments that may lead to negative rating action
include:

-- Failure to maintain refining margins at the Gothenburg
    refinery above benchmark

-- Unfavorable changes in regulation for biofuels

-- FFO-adjusted net leverage sustained above 5.5x

LIQUIDITY

CPH plans to reduce its gross leverage. In 2016 the company
expects to make a final payment under the $US650 million term
loan entered into in 2011 (outstanding balance at end-September
2015 of $US133 million). CPH can amortize 10% of the PIK notes
annually from 2017. At end-2015 utilization under the credit
facility at Preem was around $US0.8 billion. The borrowing base
of the loan corresponds to the balance of receivables and
inventory and the limit can be increased to $US1.65 billion and
then further to $US1.8 billion if the oil price rises above
$US100/bbl.

SUMMARY OF FINANCIAL STATEMENT ADJUSTMENTS

Fitch has adjusted the balance sheet debt by capitalizing the
annual operating lease of SEK50 million using the standard 8x
multiple. As a result the debt increased by SEK400 million.

Additionally, Fitch has decreased the balance sheet debt by
excluding the shareholder loan and subordinated notes, amounting
to SEK6,025 million, due to their equity-like characteristics.


EMBLEM FINANCE 2: Fitch Cuts Credit-Linked Notes Rating to BB-
--------------------------------------------------------------
Fitch Ratings has downgraded Emblem Finance Company No. 2 (Emblem
Finance) as follows:

-- CLP5,082,000,000 credit-linked notes to 'BB-sf' from 'BBsf';
    Outlook Negative.

KEY RATING DRIVERS

The rating action follows Fitch's downgrade of the reference
entity, Votorantim Participacoes S.A. (VPAR), to 'BBB-' from
'BBB'. Fitch monitors the performance of the underlying risk-
presenting entities and adjusts the rating accordingly through
application of its credit-linked note (CLN) criteria, 'Global
Rating Criteria for Single- and Multi-Name Credit-Linked Notes',
dated March 8, 2016.

The rating considers the credit quality of VPAR's current Issuer
Default Rating (IDR) ('BBB-'/Negative Outlook) as the reference
entity, JPMorgan Chase & Co.'s IDR ('A+'/Stable Outlook) as the
swap counterparty, and HSBC Holdings Plc's subordinated notes
rating ('A+'/Stable Outlook) as the qualified investment. The
Rating Outlook reflects the Outlook on the main risk driver,
VPAR, which is the lowest-rated risk-presenting entity.

RATING SENSITIVITIES

The rating remains sensitive to rating migration of each risk-
presenting entity. A downgrade of VPAR would likely result in a
downgrade to the notes.

Emblem No. 2 is a single-name CLN transaction designed to provide
credit protection on VPAR with a reference amount of
CLP5,082,000,000 ($US10 million). This protection is arranged
through a credit default swap (CDS) between the issuer and the
swap counterparty, JPMorgan Chase & Co. Proceeds from the
issuance of the notes were used to purchase $US10 million HSBC
Holdings Plc subordinated notes as a collateral asset for the
CDS. The notes are rated to the payment of interest and principal
per the transaction documents. All payments are made in $US
amounts adjusted according to both the value of the Undidad de
Fomento (UF) and the CLP/$US exchange rate as outlined in the
transaction documents.

DUE DILIGENCE USAGE

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


LIBERTY GLOBAL: Egan-Jones Hikes Sr. Unsecured Rating to BB+
------------------------------------------------------------
Egan-Jones Ratings Company raised the senior unsecured rating on
debt issued by Liberty Global PLC to BB+ from BB on April 4,
2016.

Headquartered in London, Liberty Global plc is an American,
British-based telecommunications and television company. It was
formed in 2005 by the merger of the international arm of Liberty
Media and UGC (UnitedGlobalCom), and is one of the largest
broadband internet service providers in the world.


OSPREY ACQUISITIONS: Fitch Affirms BB LT Issuer Default Rating
--------------------------------------------------------------
Fitch Ratings has affirmed Osprey Acquisitions Limited's (Osprey)
Long-Term Issuer Default Rating (IDR) at 'BB' and its senior
secured rating at 'BB+'. The Outlook on the Long-Term IDR is
Stable. Fitch has also affirmed the senior secured bond issued by
Anglian Water (Osprey) Financing Plc (AWOF) at 'BB+'. The bond is
guaranteed by Osprey, and is thus rated in line with Osprey's
senior secured rating of 'BB+'.

The affirmation and stable outlook reflects the adequate dividend
capacity of the operating company (OpCo) in comparison with the
debt service requirements of Osprey, adequate credit metrics, and
expected reduction of subordination for investors at Osprey.

The rating also takes into account the market-leading operational
and regulatory performance of Anglian Water, the main operating
subsidiary of the group, as well as the structurally and
contractually subordinated nature of the holding company
financing at Osprey level.

Osprey is a holding company of Anglian Water Services Limited
(Anglian Water or OpCo; A/BBB+/Stable), one of 10 appointed
regulated water and sewerage companies (WaSC) in England and
Wales. AWOF is the financing vehicle for Osprey, which is a
holding company for businesses focused on the water sector,
including ownership of Anglian Water -- a regulated water and
wastewater business.

KEY RATING DRIVERS

"Adequate Dividend Cover, Reduced Subordination at Holdco
For the price review covering April 2015 to March 2020 (AMP6),
Fitch forecasts average dividend cover of 3.7x and average post-
maintenance and post-tax interest cover (PMICR) at around 1.1x.
We expect subordination at Osprey to gradually reduce as a result
of the board-approved business plan of the company to reduce
leverage at OpCo to 80% by 2020, and the expectation that
management will not increase Holdco's current level of debt of
GBP450 million."

"As a result, we forecast Osprey's pension-adjusted net
debt/regulatory asset value (RAV) to reduce to around 86% by
March 2020 from around 89% in the financial year to March 2015.
We view the current forecast level of dividend cover as a
mitigating factor for leverage being slightly above the rating
guidance of 85%."

For FY15 (the last year of AMP5), Fitch calculates Osprey's
dividend cover of around 3x, pension-adjusted net debt/RAV at
89.3%, and post-maintenance and post-tax interest cover (PMICR)
at around 1.1x.

Low Inflation a Risk

Incremental debt at holding level of GBP450 million represents
around 6% of RAV and incurs an average annual financial charge of
around GBP35 million. Reduced dividend stream from Anglian Water
will still allow comfortable servicing of the debt. However, if
retail price inflation remains materially below 1.5% for an
extended period of time, dividend stream from Anglian Water would
be further reduced. This could lead to negative rating action for
Osprey's ratings if shareholders do not bear the risk of lower
inflation.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for OpCo include:

-- Regulated revenues in line with the final determination of
    tariffs for April 2015 to March 2020, ie assuming no material
    over- or under-recoveries.

-- Combined totex outperformance and Outcome Delivery Incentive
    leakage outperformance of GBP168m in nominal terms over the
    five-year period.

-- Slight underperformance in retail costs.

-- Non-appointed EBITDA of around GBP7.7m per annum.

-- Retail price inflation of 1.3% for FY16, 2% for FY17 and 2.5%
    thereafter."

In addition, for Osprey, Fitch assumes:

-- Incremental debt at holding company level to remain at
    GBP450 million.

-- Average annual finance charge at holding company level at
    around GBP35 million."

RATING SENSITIVITIES

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

-- A sustainable drop of expected dividend cover below 3x, for
    example due to RPI remaining materially below 1.5% over an
    extended period of time.

-- Forecast group gearing sustainably above 85%, coupled with
    forecast dividend cover dropping to close to 3x.

-- A marked deterioration in operating and regulatory
    performance of Anglian Water or a material change in business
    risk of the UK water sector.

Positive: The ratings currently do not have any upside. A higher
rating for the holding company would be contingent on Anglian
Water materially reducing its regulatory gearing.

LIQUIDITY

As of September 30, 2015, Osprey held GBP21 million in cash, and
AWOF had available GBP125 million of undrawn, committed bank
facilities with maturity in 2020. This is sufficient to bridge
short-term liquidity needs. For debt service, Osprey and AWOF
effectively rely on upstream cash flows from their operating
subsidiaries, primarily Anglian Water.


TATA STEEL: Bosses Draw Up Management Buyout Plan
-------------------------------------------------
Alan Tovey at The Telegraph reports that thousands of British
steel jobs could be saved after managers at Tata's UK steel unit
stepped up ambitious plans to buy the business from its Indian
parent.

Bosses led by Stuart Wilkie, who heads Tata's strip steel
business in Britan, called in staff on April 19 to brief them
about a possible management buyout, The Telegraph relates.

The buyout is understood to want to revive the turnaround plan
rejected by Tata's board in India last month, throwing into
jeopardy the jobs 11,000 direct employees and at least 20,000
more in the company's supply chain, The Telegraph says.

According to The Telegraph, people with knowledge of the
turnaround plan -- known as "the Bridge" -- said it was
originally scheduled to take two years before it returned the
business to profit.  Managers in the UK saw this as an ambitious
but achievable target, The Telegraph notes.

The management buyout is understood to have returned to a more
realistic timeframe, The Telegraph states.  Under the Bridge's
plans, Port Talbot's blast furnaces -- which employ more than
half of the 3,000 staff there -- would also be retained, The
Telegraph discloses.  Backing this could be politically
attractive to the Government, as it would mean the UK's ability
to make steel would be remain intact, as well as saving more
jobs, The Telegraph says.

The Government has pledged to do it "all it can" to help Tata
find a buyer for the business, The Telegraph relays.

Tata Steel is the UK's biggest steel company.


* UNITED KINGDOM: Living Wage to Spur Company Bankruptcies
----------------------------------------------------------
Belfast Telegraph reports that thousands of businesses are at
risk of going bust as a result of having to pay the national
living wage to employees.

According to Belfast Telegraph, data from Begbies Traynor shows
that 60,000 companies were already in a "dire financial state"
before the scheme was introduced, and the added cost could push
many over the edge.

"Sectors that traditionally pay low salaries are most at risk,
and I wouldn't be surprised if at least 15,000 firms from that
basket go out of business as a result of the added cost," Belfast
Telegraph quotes Julie Palmer, partner at Begbies Traynor, as
saying.

She added that many businesses had already taken steps to
mitigate the immediate cost impacts of the living wage, such as
reducing overtime and bonuses, passing on the higher costs to
customers, reducing staff numbers and cutting the pay of workers
under 25, Belfast Telegraph relays.

Sectors most at risk include hotels, care homes and retailers,
Belfast Telegraph notes.


                            *********

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 * * *