TCREUR_Public/160503.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

           Tuesday, May 3, 2016, Vol. 17, No. 086


                            Headlines


C Z E C H   R E P U B L I C

NEW WORLD: Board to Discuss Probable Bankruptcy Today
NEW WORLD: Moody's Cuts Corp. Family Rating to C, Outlook Neg.


F I N L A N D

EKSPO FAKTORING: Moody's Affirms B2 Corporate Family Rating


G E R M A N Y

HSH NORDBANK: Wins EU Approval for Increased State Guarantee


G R E E C E

DRYSHIPS INC: In Talks with Lenders Following Default


I R E L A N D

BLUEMOUNTAIN EUR 2016-1: Moody's Assigns B2 Rating to Cl. F Debt


I T A L Y

CARTIERE PAOLO: May 31 Expressions of Interest Deadline Set
DEXIA CREDIOP: Moody's Hikes Sr. Unsecured Debt Ratings From Ba3
POPOLARE DI VICENZA: Atlante Fund Takes Part in Capital Call


K A Z A K H S T A N

KAZAKHSTAN ELECTRICITY: Moody's Hikes BCA Rating to ba3


L U X E M B O U R G

MILLICOM INT'L: Egan-Jones Cuts Sr. Unsecured Ratings to BB-


N E T H E R L A N D S

MEDIARENA ACQUISITION: Moody's Cuts Corporate Family Rating to B3


P O R T U G A L

NOVO BANCO: Court Blocks Senior Bonds Transfer to Bad Bank


R U S S I A

BASHNEFT PJSOC: Moody's Confirms Ba1 Corporate Family Rating
SVYAZINVESTNEFTEKHIM OAO: Moody's Ba2 Rating Still Under Review


S P A I N

GESTAMP AUTOMOCION: Moody's Hikes Corporate Family Rating to Ba2
KUTXABANK SA: Moody's Hikes Deposit & Senior Debt Ratings to Ba1
REPSOL SA: Egan-Jones Lowers Sr. Unsecured Ratings to B


T U R K E Y

DENIZBANK AS: Moody's Confirms Ba2 Currency LT Deposit Ratings


U N I T E D   K I N G D O M

BHS GROUP: Lord Grabiner Set to Face Inquiry Over Collapse
BHS GROUP: Mike Ashley Eyes Rescue Bid for Business
FINSBURY SQUARE 2016-1: Moody's Assigns Ca Rating to Cl. X Debt


                            *********


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C Z E C H   R E P U B L I C
===========================


NEW WORLD: Board to Discuss Probable Bankruptcy Today
-----------------------------------------------------
Forex News reports that the board of New World Resources will
meet to discuss probable bankruptcy today, May 3, as the company
burns through the last of its cash reserves and appeals to the
Czech government for help.

The company said it would wind down OKD, its Czech mining unit,
this week unless Prague made a last-minute proposal for financial
support, Forex News relates.  The unit wants government
assistance to close lossmaking mines and restructure its
business, which has been savaged by the fall in global coal
prices over the past five years, Forex News discloses.

OKD will run out of cash to pay its 13,000 workers in "mid-May",
Gareth Penny, chairman of NWR, as cited by Forex News, admitting
that insolvency was an "increasing probability".

Moody's, the rating agency, said last week a default is "highly
likely", Forex News recounts.

OKD, Forex News says, has posted spiralling losses over the past
few years as coal prices have fallen roughly two-thirds since
2011.

The problems at the Czech miner highlight turmoil in the coal
industry as the sector battles low prices and waning demand,
Forex News.

OKD, which threatened bankruptcy on Feb. 29, has received no
response from the government, Forex News relays.  Czech ministers
were expected to discuss the company's situation at a meeting on
May 2, but Prague has consistently refused to assist the miner in
talks over past months, Forex News states.

New World Resources Plc is the largest Czech producer of coking
coal.


NEW WORLD: Moody's Cuts Corp. Family Rating to C, Outlook Neg.
--------------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
(CFR) and probability of default rating (PDR) of New World
Resources N.V. to C and to C-PD respectively, from Caa3 and
Caa3-PD. Concurrently, Moody's has downgraded the rating of the
EUR300 million senior secured notes due in 2020 to Ca, from Caa2.
The outlook on all ratings is negative.

RATINGS RATIONALE

The downgrade of the CFR of NWR to C reflects Moody's expectation
that the company is highly likely to default in the near future
and that, under a default scenario in the current market, the
likely recovery rates across the debt capital structure will be
very modest.

Moody's current assessment of materially increased likelihood of
default follows the recent indication by NWR, in its press
release dated 25th of April 2016, that its super senior credit
facility ('SSCF') standstill and waiver agreement has expired and
events of default under certain terms of the SSCF have occurred
and are continuing. This means that the company is now exposed to
the risk of cross default and cross acceleration with other debt
instruments, including the Export Credit Facility and the senior
secured notes. As yet it does not appear there has been an actual
missed debt service payment, noting that the terms of the notes
allow for the coupon to be paid in kind, nor any other event
which would fall within Moody's definition of default. The
company also indicates that unless support from the Czech
Republic government (A1 stable) or the shareholders is
forthcoming by 29 April, the directors will have to consider an
insolvency filing, and that in the weeks ahead it may not have
sufficient liquidity to pay workers' salaries.

The deterioration of the coal market environment during 2015, and
the recent indication by NWR that average prices achieved in Q1
2016 for its thermal and metallurgical coal sales were 16% and
15.5% lower compared to Q1 2015, highlight that this will be
another challenging year for the company, with no recovery in
sight. These negative market and industry developments are
exacerbating the structural vulnerabilities of the company. Such
structural weaknesses relate to an unsustainable capital
structure, which is burdened by too much debt, and loss making
mining operations, which are characterized by still very high
fixed costs, notwithstanding ongoing cost-cutting and efficiency
initiatives being implemented by management to lower the average
cash cost position of the mines.

These adverse conditions clearly make it harder for management to
find an agreement with all its main stakeholders, including the
Czech government for a new and now urgently needed operational
and financial restructuring.

Even if a restructuring deal were to be agreed at the last
minute, Moody's believes NWR's ability to fund operations through
to completion of such financial restructuring (where new
meaningful cash resources could be injected into the group) is
uncertain and highly dependent on the timeframe for securing such
agreement. Furthermore, with no sustained recovery of coal prices
in sight, it would be unrealistic to expect a swift reversal of
the cash burn trend, which has most likely accelerated since the
start of 2016 due to the lower average realized prices than a
year ago. Without new urgent liquidity from external sources, the
company will also most likely breach its minimum EUR 40 million
cash balance covenant under its SSCF on the June 2016 testing
date.

The Ca rating of the senior secured notes represents a one-notch
uplift from the CFR, which reflects the priority ranking status
of the secured bondholders relative to other creditors in the
event of default. At the same time, the Ca rating on the notes is
constrained by Moody's assumption of a very low overall family
recovery rate, negatively impacted by the EUR 199 million asset
impairment reported by the company on its 2015 audited accounts,
and by expectation that further asset impairments may be looming.
The notes' Ca rating also reflects their effective subordination
to EUR 35 million SSCF, plus accrued interests, which will be
repaid first in a scenario of enforcement of the collateral.

The negative outlook reflects Moody's view on the probability of
default of the company within a short timeframe, combined with
the possibility of a lower than expected recovery for secured
noteholders under a scenario of liquidation, also considering the
weak market environment for coal, making the company's mining
operations -- currently loss making -- potentially less
attractive.

WHAT COULD CHANGE THE RATING UP/DOWN

Moody's does not expect any positive rating pressure in the near
term, unless the company can secure in a very short timeframe the
funding needed to improve its liquidity and enable a credible
operational turnaround plan. Positive rating pressure would also
require a sustained recovery in the reference coal markets.

The ratings are already very low in the scale so there is limited
scope for a further downgrade except on the notes, if recovery
expectations weaken further.

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

Headquartered in the United Kingdom, NWR is the largest hard coal
mining group in the Czech Republic through its subsidiary OKD,
a.s. The company has four operating coal mines which during 2015
led to annual sales of 8mt of coal. The company reported
consolidated revenues of EUR 630 million in 2015. The company is
currently owned by its secured bondholders, after the previous
majority owner, investment company CERCL Mining Holdings BV,
exited completely in March 2016, by transferring for nil
consideration its c. 51% equity stake to NWR in order to try
facilitating the restructuring negotiation process, which started
at the beginning of 2016.



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F I N L A N D
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EKSPO FAKTORING: Moody's Affirms B2 Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service affirmed the local and foreign currency
corporate family and issuer ratings of Ekspo Faktoring A.S.
(Ekspo) at B2. The outlook on the ratings was changed to stable
from negative. Ekspo's national scale long-term issuer rating
(NSR) was also affirmed at Ba1.tr.

RATINGS RATIONALE

The primary drivers for the stable outlook are Ekspo's improving
profitability, the reduced funding and liquidity risks and the
improved asset quality. The affirmation of Ekspo's ratings also
reflects the strong and consistently rising capitalization.

GRADUALLY IMPROVING PROFITABILITY

Ekspo's profitability has increased and compares favorably with
the average for the factoring sector. Net profitability at
year-end 2015 was about 6% higher than the previous year, with a
further improvement in the first quarter of 2016. Net
profitability was equal to TRY10.4 million at year-end 2015, or
3.6% of annual net income-to-average assets, compared with 3.4%
at year-end 2014 and 3% at year-end 2013. The company's pre-
provision income over average assets also increased, reaching
5.4% at year-end 2015 from 4.8% at year-end 2014 and 4.5% at
year-end 2013. Despite the competitive factoring sector in
Turkey, Ekspo's profitability has been gradually improving,
supported by its innovative and diversified product offerings and
disciplined cost management.

Ekspo adjusted its cost base, resulting in a lower cost-to-income
ratio of 39.8% at year-end 2015 compared with 41.6% the previous
year, indicating that the bank's operating expenses were growing
less than its revenue generation in 2015.

REDUCED FUNDING AND LIQUIDITY RISKS

Moody's notes Ekspo's risks associated with the high dependence
on short-term wholesale funding. However, these risks have been
partly mitigated by the company's ability to (1) eliminate
maturity gaps between liabilities and assets (on a monthly basis)
and (2) increase its level of cash holdings at 2% of total assets
at year-end 2015, compared to 0.1% the previous year. As a non-
bank financial institution, Ekspo does not have access to the
Central Bank of Turkey's liquidity, in case of need.

Additionally, while the amount of credit lines provided to Ekspo
is fairly ample and also includes international export-import
agencies, Moody's notes that the three largest counterparties
accounted for a high 74% of total bank lines in use at year-end
2015, thus resulting in a relatively high concentration risk.

STRONG AND CONSISTENTLY RISING CAPITALISATION

Moody's notes that Ekspo's capital position continues to rise and
provides good loss-absorption capacity in case of need. Moody's
also observes that Ekspo's equity-to-total assets ratio reached
33.8% at year-end 2015, which compares favorably with the system
average of 17.2% (system average includes bank-affiliated
factoring companies, which implies access to a bank parent as a
source of capital strength).

IMPROVED ASSET QUALITY, BUT RELATIVELY HIGH BORROWER CREDIT
CONCENTRATION REMAINS A RISK

Ekspo's asset quality has shown an improving trend, largely
driven by non-performing loans (NPLs) sales. The NPLs-to-gross
loans ratio was at 1.5% at year-end 2015, compared with the 2.1%
reported at year-end 2014 and 3% at year-end 2013. Ekspo's NPL
ratio compares well with the average for the factoring sector in
Turkey of 5.7% at year-end 2015.

At the same time, Moody's notes that Ekspo maintains a relatively
large single-name credit concentration when measuring the top 20
exposures to its equity, although this risk is somewhat mitigated
by the short maturity (average of about three months) of Ekspo's
loan portfolio.

RATING OUTLOOK

As a reflection of the aforementioned improvements in
profitability, liquidity and asset quality, and the expectation
that the issuer will continue to maintain strong capitalization,
we have changed the outlook to stable from negative. The current
B2 ratings, with a stable outlook, also considers that Ekspo will
continue to face challenges in gradually expanding its franchise
in Turkey's volatile operating environment.

WHAT COULD MOVE THE RATINGS DOWN / UP

Downward pressure could develop on Ekspo's ratings if (1) asset
quality and profitability deteriorate; (2) credit risk in Turkey
generates losses that put solvency at risk and jeopardizes the
company's current business model; (3) financial leverage
increases significantly without simultaneously raising matched
funding; and (4) the company's franchise weakens substantially.

Upwards rating pressure could, however, develop following (1)
improvement in the diversification of the funding profile; (2)
significant strengthening of the franchise and relative market
share; and (3) decreasing borrower credit concentration.

National Scale Rating (NSR)

The Ba1.tr National Scale Rating (NSR) is derived directly from
the local currency issuer rating. Therefore, the direction of the
change in the long-term ratings will influence any future
adjustment in these ratings.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Finance
Companies published in October 2015.

LIST OF AFFECTED RATINGS

Affirmations:

-- LT Corporate Family Rating (Foreign Currency and Local
    Currency), Affirmed at B2

-- LT Issuer Rating (Foreign Currency and Local Currency),
    Affirmed at B2

-- NSR LT Issuer Rating (Local Currency), Affirmed at Ba1.tr

Outlook Actions:

-- Outlook, Changed to Stable from Negative



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G E R M A N Y
=============


HSH NORDBANK: Wins EU Approval for Increased State Guarantee
------------------------------------------------------------
Aoife White at Bloomberg News reports that HSH Nordbank AG won
formal European Union approval for an increased state guarantee,
paving the way for its sale after it unloads distressed shipping
loans to a bad bank.

The European Commission said the bank will be wound down if it
can't be sold as a viable business that doesn't require further
government help, Bloomberg relays, citing an e-mailed statement.

According to Bloomberg, HSH Nordbank can sell as much as EUR6.2
billion of bad loans to the two German states at market value and
another EUR2 billion to the market under the EU decision.  The EU
said the price will be set through an independent value
assessment, Bloomberg relates.

While the EU didn't mention the deadline for the sale, HSH said
it must be done by Feb. 28, 2018, plus a six months grace period,
Bloomberg notes.

                        About HSH Nordbank

HSH Nordbank -- http://www.hsh-nordbank.com/-- is a commercial
bank in northern Europe with headquarters in Hamburg as well as
Kiel, Germany.  It is active in corporate and private banking.
HSH's main focus is on shipping, transportation, real estate and
renewable energy.



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G R E E C E
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DRYSHIPS INC: In Talks with Lenders Following Default
-----------------------------------------------------
Stephanie Gleason at Daily Bankruptcy Review reports that
DryShips Inc. is out of compliance with its debt agreements and
recently warned that its ability to continue operations as a
going concern is at risk.

According to Daily Bankruptcy Review, the company said in
recently filed financial statements that it's negotiating with
its lenders after three events of default were declared, the
result of its failure to meet financial requirements in its loan
agreement.

The company has also failed to make a balloon maturity payment on
one loan, it said, which will put all US$341.9 million of its
debt in default if DryShips doesn't obtain waivers, Daily
Bankruptcy Review relates.

                     About DryShips Inc.

Dryships Inc. is a provider of ocean transportation services for
drybulk and petroleum cargoes through its subsidiary Ocean Rig
UDW.  Based in Athens, Greece, the Company owns a fleet of 38
drybulk carriers, eight drilling units, and 10 oil tankers.



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I R E L A N D
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BLUEMOUNTAIN EUR 2016-1: Moody's Assigns B2 Rating to Cl. F Debt
----------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by BlueMountain EUR
CLO 2016-1 Designated Activity Company ("BlueMountain EUR CLO
2016-1 D.A.C." or the "Issuer"):

EUR212,400,000 Class A1 Senior Secured Floating Rate Notes due
2030, Definitive Rating Assigned Aaa (sf)

EUR20,000,000 Class A2 Senior Secured Fixed Rate Notes due 2030,
Definitive Rating Assigned Aaa (sf)

EUR31,200,000 Class B1 Senior Secured Floating Rate Notes due
2030, Definitive Rating Assigned Aa2 (sf)

EUR20,000,000 Class B2 Senior Secured Fixed Rate Notes due 2030,
Definitive Rating Assigned Aa2 (sf)

EUR21,600,000 Class C Deferrable Mezzanine Floating Rate Notes
due 2030, Definitive Rating Assigned A2 (sf)

EUR20,400,000 Class D Deferrable Mezzanine Floating Rate Notes
due 2030, Definitive Rating Assigned Baa2 (sf)

EUR26,600,000 Class E Deferrable Junior Floating Rate Notes due
2030, Definitive Rating Assigned Ba2 (sf)

EUR13,400,000 Class F Deferrable Junior Floating Rate Notes due
2030, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's definitive rating of the rated notes addresses the
expected loss posed to noteholders by legal final maturity of the
notes in 2030. The definitive ratings reflect the risks due to
defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure. Furthermore, Moody's
is of the opinion that the collateral manager, BlueMountain Fuji
Management, LLC, acting through its Series A ("BlueMountain A"),
has sufficient experience and operational capacity and is capable
of managing this CLO.

BlueMountain EUR CLO 2016-1 D.A.C. is a managed cash flow CLO. At
least 90% of the portfolio must consist of secured senior
obligations and up to 10% of the portfolio may consist of senior
unsecured obligations, second-lien loans, high yield bonds and
mezzanine obligations. The portfolio is expected to be
approximately 75% ramped up as of the closing date and to be
comprised predominantly of corporate loans to obligors domiciled
in Western Europe. The remainder of the portfolio will be
acquired during the six month ramp-up period in compliance with
the portfolio guidelines.

BlueMountain A, will manage the CLO. It will direct the
selection, acquisition and disposition of collateral on behalf of
the Issuer and may engage in trading activity, including
discretionary trading, during the transaction's four-year
reinvestment period. Thereafter, purchases are permitted using
principal proceeds from unscheduled principal payments and
proceeds from sales of credit improved and credit impaired
obligations, and are subject to certain restrictions.

In addition to the eight classes of notes rated by Moody's, the
Issuer issued EUR 44,200,000 of subordinated notes. Moody's will
not assign ratings to this class of notes.

The transaction incorporates interest and par coverage tests
which, if triggered, divert interest and principal proceeds to
pay down the notes in order of seniority.

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

The rated notes' performance is subject to uncertainty. The
notes' performance is sensitive to the performance of the
underlying portfolio, which in turn depends on economic and
credit conditions that may change. BlueMountain's A investment
decisions and management of the transaction will also affect the
notes' performance.

Loss and Cash Flow Analysis:

Moody's modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published in
December 2015. The cash flow model evaluates all default
scenarios that are then weighted considering the probabilities of
the binomial distribution assumed for the portfolio default rate.
In each default scenario, the corresponding loss for each class
of notes is calculated given the incoming cash flows from the
assets and the outgoing payments to third parties and
noteholders. Therefore, the expected loss or EL for each tranche
is the sum product of (i) the probability of 0 occurrence of each
default scenario and (ii) the loss derived from the cash flow
model in each default scenario for each tranche.

Moody's used the following base-case modeling assumptions:

Par Amount: EUR 400,000,000

Diversity Score: 36

Weighted Average Rating Factor (WARF): 2800

Weighted Average Spread (WAS): 4.00%

Weighted Average Coupon (WAC): 5.25%

Weighted Average Recovery Rate (WARR): 42%

Weighted Average Life (WAL): 8 years

As part of the base case, Moody's has addressed the potential
exposure to obligors domiciled in countries with local currency
country risk ceiling (LCC) of A1 or below. As per the portfolio
constraints, exposures to countries with a LCC of A1 or below
cannot exceed 10%, with exposures to countries with LCCs of Baa1
to Baa3 further limited to 5%. Following the effective date, and
given these portfolio constraints and the current sovereign
ratings of eligible countries, the total exposure to countries
with a LCC of A1 or below may not exceed 10% of the total
portfolio. As a worst case scenario, a maximum 5% of the pool
would be domiciled in countries with LCCs of Baa1 to Baa3 while
an additional 5% would be domiciled in countries with LCCs of A1
to A3. The remainder of the pool will be domiciled in countries
which currently have a LCC of Aa3 and above. Given this portfolio
composition, the model was run with different target par amounts
depending on the target rating of each class of notes as further
described in the methodology. The portfolio haircuts are a
function of the exposure size to countries with LCC of A1 or
below and the target ratings of the rated notes, and amount to
0.75% for the Class A1&A2 notes, 0.50% for the Class B1&B2 notes,
0.38% for the Class C notes and 0% for Classes D, E and F.

Stress Scenarios:

Together with the set of modelling assumptions above, Moody's
conducted an additional sensitivity analysis, which was an
important component in determining the definitive rating assigned
to the rated notes. This sensitivity analysis includes increased
default probability relative to the base case. Below is a summary
of the impact of an increase in default probability (expressed in
terms of WARF level) on each of the rated notes (shown in terms
of the number of notch difference versus the current model
output, whereby a negative difference corresponds to higher
expected losses), holding all other factors equal:

Percentage Change in WARF: WARF + 15% (to 3220 from 2800)

Ratings Impact in Rating Notches:

Class A1 Senior Secured Floating Rate Notes: 0

Class A2 Senior Secured Fixed Rate Notes: 0

Class B1 Senior Secured Floating Rate Notes: -2

Class B2 Senior Secured Fixed Rate Notes: -2

Class C Deferrable Mezzanine Floating Rate Notes: -2

Class D Deferrable Mezzanine Floating Rate Notes: -2

Class E Deferrable Junior Floating Rate Notes: -1

Class F Deferrable Junior Floating Rate Notes: -1

Percentage Change in WARF: WARF +30% (to 3640 from 2800)

Ratings Impact in Rating Notches:

Class A1 Senior Secured Floating Rate Notes: -1

Class A2 Senior Secured Fixed Rate Notes: -1

Class B1 Senior Secured Floating Rate Notes: -3

Class B2 Senior Secured Fixed Rate Notes: -3

Class C Deferrable Mezzanine Floating Rate Notes: -4

Class D Deferrable Mezzanine Floating Rate Notes: -2

Class E Deferrable Junior Floating Rate Notes: -2

Class F Deferrable Junior Floating Rate Notes: -3



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I T A L Y
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CARTIERE PAOLO: May 31 Expressions of Interest Deadline Set
-----------------------------------------------------------
Carlo Pagliughi, Claudio Ferrario and M.G. Giampieretti, the
appointed commissioners of Concordato Preventivo Cartiere Paolo
Pigna SpA (Creditors Proceeding no. 28/2015, Court of Bergamo),
are collecting expressions of interest regarding the acquisition
of the share capital owned by Cartiere Pigna SpA in the following
companies:

RILECART S.R.L. (100%), PIGNA TADE SR.L. (100%), PIGNA HUNGARIA
S.L. (51%),  PIGNA RUSSIA S.R.L. (60%), PIGNA FRANCE - PARIGI
(100%), JOTO LTD. (100%),  RILECART PTE LTD - SINGAPORE (100%),
PIGNA IBERICA S.L. (100%), PIGNA AUSTRALIA  PTY LTD. (100%),
PIGNA TRADE INC. (100%), IRENE S.RL. IN LIQ. (49%).

The expressions of interest, also for a single entity, must be
sent until May 31, 2016.

For further information concerning the Companies and the rules of
the sale a Confidentiality agreement, Commissioner Carlo
Pagliughi may be reached at carlo.pagliughi@studiopagliughi.it


DEXIA CREDIOP: Moody's Hikes Sr. Unsecured Debt Ratings From Ba3
----------------------------------------------------------------
Moody's Investors Service upgraded Dexia Crediop S.p.A. (Dexia
Crediop)'s long-term deposit and senior unsecured debt ratings to
Baa3 from Ba3, with a stable outlook, and its short-term rating
to Prime-3, from Not Prime (NP). The bank's standalone baseline
credit assessment (BCA) was also upgraded to b2, from caa1, and
its adjusted BCA was affirmed at b2. The rating agency also
upgraded the bank's counterparty risk (CR) assessment to
Baa3(cr)/P-3(cr), from Ba3(cr)/NP(cr).

RATINGS RATIONALE

The rating action reflects Moody's revised view that Dexia
Crediop's ongoing resolution is intrinsically linked to the
orderly resolution of its parent Dexia Credit Local (DCL; Baa3
stable, b2), as approved by the European Commission (EC) on
December 28, 2012. Given the amount of capital and funding
provided by DCL to Dexia Crediop, Moody's considers that the
likelihood of the latter being resolved separately from the rest
of the group is now very low.

Dexia Crediop's revised BCA of b2 reflects the bank's progressive
improvements in its risk profile through the de-risking of its
balance sheet. It also reflects significant risk concentrations
to Italian public sector entities, its high nominal leverage and
its dependence on funding provided by its parent and the European
Central Bank. Given the bank's extensive financial links with its
parent, Moody's believes there is a very high likelihood of
support from DCL in case of need. Dexia Crediop's adjusted BCA is
thus aligned with DCL's own BCA, at b2.

Dexia Crediop and DCL's deleveraging and de-risking process has
so far unfolded according to the orderly resolution plan approved
by the EC. However, given the size of the group's balance sheet
and the various external factors that are affecting its
operations, it cannot be excluded that the Dexia group might need
additional state aid support during its prolonged run-off period.
As both DCL and Dexia Crediop are already in resolution, Moody's
does not consider that such additional support would necessarily
result in the application of resolution tools under the BRRD
framework. Therefore, the agency does not apply its Advanced Loss
Given Failure (LGF) analysis to Dexia Crediop.

Instead, the bank's deposit and senior unsecured ratings benefit
from a very high probability of government support. This is based
on the agency's view that if additional support is needed during
the run-off period, this would be likely extended to the entire
group by the governments of Belgium and France. This is based
upon the group's size, systemic importance, and the states'
extensive financial exposure to Dexia via their majority
ownership and funding guarantees. This support would very likely
extend to Dexia Crediop since DCL provides a substantial
proportion of the latter's own funding. The very high probability
of government support translates into a five-notch uplift from
the bank's adjusted BCA, to Baa3.

The CR Assessment of Baa3(cr)/P-3(cr) is positioned at the same
level as the bank's senior unsecured rating as Moody's considers
that the operational liabilities of an entity already in
resolution are unlikely to benefit from any additional protection
compared to depositors and senior creditors.

As a result of the action, Moody's also corrected an error in
Dexia Crediop's deposit and senior unsecured ratings, as well as
in its CR assessment, which were all positioned two notches above
the bank's adjusted BCA, at Ba3 and Ba3(cr)/NP(cr), respectively.
This positioning did not properly reflect the risk of loss
according to the agency's Advanced LGF analysis as then applied
to Dexia Crediop on a standalone basis, following Moody's
previous assumptions. This was the result of the erroneous
inclusion in the bank's expected balance sheet at failure of
EUR900 million of short term debt securities issued by Dexia
Crediop and EUR400 million of subordinated debt issued to Dexia
Crediop's parent.

Moody's now considers that Dexia Crediop is very unlikely to be
resolved on a standalone basis and, no longer applying the
Advanced LGF analysis, has corrected this error accordingly.

WHAT COULD CHANGE THE RATING UP

Dexia Crediop's BCA could be upgraded as a result of performing
better than expected in the implementation of the orderly
resolution plan approved by the EC. An upgrade in the bank's
ratings would likely be driven by an upgrade in the ratings on
DCL.

WHAT COULD CHANGE THE RATING DOWN

On the other hand, significant negative deviation from the trend
set out in the group's resolution plan could trigger a downgrade
of DCL, which, in turn, would likely result in a downgrade of
Dexia Crediop's own adjusted BCA and long-term deposit and senior
unsecured ratings.

Suggestions from the guarantor States and/or national or European
resolution authorities that additional support would not be
provided by the governments would also likely result in a
downgrade of the bank's deposit and senior unsecured ratings.
Moves to separate Dexia Crediop from DCL could lead to either a
lower level of affiliate support and / or reduced government
support, and hence a downgrade of Dexia Crediop's deposit and
senior unsecured ratings.

LIST OF AFFECTED RATINGS

Issuer: Dexia Crediop S.p.A.

Upgrades:

-- Baseline Credit Assessment, upgraded to b2 from caa1

-- Short-term Counterparty Risk Assessment, upgraded to P-3(cr)
    from NP(cr)

-- Long-term Counterparty Risk Assessment, upgraded to Baa3(cr)
    from Ba3(cr)

-- Short-term Deposit Ratings, upgraded to P-3 from NP

-- Senior Unsecured Medium-Term Note Program, upgraded to
   (P)Baa3 from (P)Ba3

-- Senior Unsecured Regular Bond/Debenture, upgraded to Baa3
    stable from Ba3 stable

-- Long-term Deposit Ratings, upgraded to Baa3 stable from Ba3
    stable

Affirmations:

-- Adjusted Baseline Credit Assessment, affirmed b2

Outlook Actions:

-- Outlook remains Stable

Issuer: Crediop Overseas Bank Limited

Upgrades:

-- Backed Senior Unsecured Regular Bond/Debenture, upgraded to
    Baa3 stable from Ba3 stable

Outlook Actions:

Outlook remains Stable


POPOLARE DI VICENZA: Atlante Fund Takes Part in Capital Call
------------------------------------------------------------
Rachel Sanderson at The Financial Times reports that Italy's
government-orchestrated EUR4.25 billion bank bailout fund Atlante
has undertaken its first rescue mission after the flop of a
closely watched EUR1.75 billion capital call at its 10th largest
bank Popolare di Vicenza.

Privately backed fund Atlante, named after the Titan who held up
the sky, was rushed into existence 10 days ago as a backstop
facility to quell contagion to Italy's banks should the capital
call demanded by European Central Bank supervisors at Popolare di
Vicenza fail, the FT relates.

According to the FT, Popolare Vicenza said in a statement on
May 1 that at the close of the capital call, Atlante ended up
holding more than 90% of the new shares at a price of 10 cents a
share.

The rest of the capital call was bought by financial institutions
active in Italy amid almost zero interest from foreign investors,
the FT discloses.

Under the rules of Atlante's creation, it will now restructure
Vicenza and seek to sell it, potentially as a takeover target to
a larger Italian lender, the FT states.

Popolare di Vicenza is an Italian regional lender.



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


KAZAKHSTAN ELECTRICITY: Moody's Hikes BCA Rating to ba3
-------------------------------------------------------
Moody's Investors Service confirmed Kazakhstan Electricity Grid
Operating Company's (KEGOC) Baa3 long-term issuer rating. The
outlook on the rating is negative. Concurrently, the agency has
raised KEGOC's baseline credit assessment (BCA) to ba3 from b1.

This action follows Moody's downgrade to Baa3 of the issuer and
senior unsecured ratings of the Republic of Kazakhstan's
government bond rating with a negative outlook on April 22, 2016
and concludes the review for downgrade for KEGOC initiated by
Moody's on March 10, 2016.

RATING RATIONALE

KEGOC's long-term issuer rating of Baa3 is predominantly
determined by the credit rating of the Republic of Kazakhstan's
government bond, given the high degree of linkage between the
creditworthiness of the company and that of the sovereign.
KEGOC's rating is driven by a combination of (1) KEGOC's
standalone BCA of ba3; (2) the Baa3 local currency rating with
negative outlook; (3) "Very High" default dependence between
KEGOC as a government-related entity (GRI) and the government;
and (4) "High" support from Kazakhstan, as the company's ultimate
shareholder, in the event of financial distress.

Confirmation of issuer rating

The confirmation of KEGOC's issuer rating reflects Moody's view
that that (1) the high probability of government support embedded
within KEGOC's rating remains appropriate despite the weaker
sovereign creditworthiness, as captured by Moody's downgrade of
the sovereign; and (2) the company will maintain sufficient
financial flexibility despite the challenging operating
environment. The latter is reflected in the raising of KEGOC's
BCA to ba3.

The downgrade of the sovereign rating was driven by Moody's
expectation of Kazakhstan's weakening economic performance owing
to the low oil price environment expected by the agency in the
next 12-24 months. This environment will negatively affect
Kazakhstan's government balance sheet given the country's high
dependence on hydrocarbons to finance government expenditures and
high liability risks in the domestic banking system.

BCA raised to ba3

The raising of KEGOK's BCA to ba3 reflects Moody's view that the
company will retain sufficient financial flexibility, also in
light of the financial covenants contained in its debt
facilities, despite the challenges in Kazakhstan's economy and
devaluation of local currency. This flexibility is driven by
significant supportive actions from the Kazakh authorities in the
form of tariff increases (since May 2014 the company's
transmission tariffs were raised by around 50% and are expected
to be further increased by, on average, 8.5% annually in the next
five-years). It is also driven by (1) the postponement of several
capex projects for the future periods; and (2) the company's cost
optimization program.

Moody's forecasts that the company's credit profile will remain
solid in the next 12-24 months and KEGOC will be in compliance of
its financial covenants in this period. The agency also expects
that KEGOC, with the support of Kazakhstan's government, will
have the opportunity to partially refinance its foreign-currency
debt with debt in local currency given a recent precedent of
issuance of domestic bonds by other government related issuers.

KEGOC's BCA remains constrained by (1) its high exposure to
interest rate and foreign currency risks as the share of its debt
denominated in euros or U.S. dollars will remain significant; (2)
Kazakhstan's cost-plus-based tariff system, which lacks
predictability and transparency; (3) large capital expenditure
needs; and (4) the challenging operating environment expected for
Kazakhstan's companies in the next 12-24 months.

KEGOC's BCA will remain supported by its monopoly position in
electricity transmission and technical dispatching in Kazakhstan
and by its strategic role in power balancing in Kazakhstan. The
BCA continues to reflect strong ordinary support from Kazakhstan
as the state remains deeply involved in the strategic development
of the KEGOC's national transmission grid business and guarantees
more than 40% of the company's debt.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook for KEGOC's rating mirrors the negative
outlook on Kazakhstan's sovereign rating and reflects the fact
that KEGOC's rating incorporates an element of extraordinary
government support, which may reduce in the event of a further
downgrade of Kazakhstan's sovereign rating.

WHAT COULD CHANGE THE RATINGS UP/DOWN

There is little likelihood of positive pressure on KEGOC's rating
at present given its exposure to sovereign-related credit risks
and the negative outlook on the Republic of Kazakhstan's
government bond rating. Moody's could change the outlook on
KEGOC's rating to stable if it were to change the outlook on
Kazakhstan's government bond rating to stable, provided there was
no material deterioration in the company's specific rating-
factors, including operating and financial performance,
liquidity, and Moody's assessment of the probability of
Kazakhstan's government providing extraordinary support to KEGOC
in the event of financial distress.

Moody's could downgrade KEGOC's rating if there were a further
downgrade of the Republic of Kazakhstan's government bond rating
and/or the rating agency assessed a lower probability of state
support for the company in a scenario of financial distress. A
material reduction of the state-guaranteed debt share could have
similar negative rating implications.

Moody's could lower KEGOC's BCA if the company's financial and
liquidity profile were to materially deteriorate, creating the
potential for a breach of its financial covenants, as evidenced,
for example, by Debt/EBITDA trending towards 4.0x.

The methodologies used in these ratings were Regulated Electric
and Gas Networks published in November 2014, and Government-
Related Issuers published in October 2014

Headquartered in Astana, Kazakhstan, Kazakhstan Electricity Grid
Operating Company (KEGOC) is the state-controlled regulated
natural monopoly business, which owns and operates the national
electricity transmission grid of the Republic of Kazakhstan. In
2015 KEGOC's revenues amounted to KZT110 billion (around $495
million).



===================
L U X E M B O U R G
===================


MILLICOM INT'L: Egan-Jones Cuts Sr. Unsecured Ratings to BB-
------------------------------------------------------------
Egan-Jones Ratings Company downgraded the local currency and
foreign currency senior unsecured ratings on debt issued by
Millicom International Cellular SA to BB- from BB on April 28,
2016.

Millicom International Celular S.A. (MIT) is a Luxembourg-based
global telecommunications and media group providing mobile,
voice, data, cable television, broadband and financial services.
Millicom offers its mobile communications services in Bolivia,
Colombia, Paraguay, El Salvador, Guatemala and Honduras under the
brand name Tigo.



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


MEDIARENA ACQUISITION: Moody's Cuts Corporate Family Rating to B3
-----------------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating
(CFR) and probability of default rating (PDR) of MediArena
Acquisition B.V. (Endemol Shine Group or ESG) to B3 and B3-PD
from B2 and B2-PD respectively. Concurrently, Moody's downgraded
the ratings on the company's 2021 first lien senior secured
facilities to B2 from B1 and the rating on the 2022 second lien
senior secured facility to Caa2 from Caa1. The outlook was also
changed to negative from stable.

The downgrade follows the company's announcement of its 2015
full-year results which were well below the rating agency's
expectations as well as ESG's 2016 budget which shows stable year
on year EBITDA despite a number of large-ticket shows having been
postponed from 2015 to 2016 and materially negative free cash
flow as investment in scripted programs and distribution weigh on
the company's net working capital.

RATING RATIONALE

ESG's B3 CFR reflects (i) the company's very high Moody's
adjusted leverage at year end 2015 of around 9.1x (7.6x excluding
bank overdrafts) and our expectations that leverage will remain
high in 2016; (ii) breakeven to low free cash flow expectations
for 2016; (iii) low visibility on revenues as broadcasters adjust
their programming schedule during the year; (iv) the company's
industry-typical challenge to continuously refresh its formats to
match viewers' changing tastes.

The CFR also reflects (i) the company's established position as
the largest independent production company by size and
geographies, which allows it to export formats in a streamlined
and margin-efficient way; (ii) ESG's well-diversified revenue
streams, with no single contract representing more than 1% of
2015 revenues and no single format representing more than 9%;
(iii) the high proportion and long tenure of recurring shows the
company produces.

At constant currency rates, ESG's 2015 revenue was -11% below
budget and -3% below actual 2014. The underperformance against
budget stems from a shortfall of 5% in non-scripted shows revenue
mainly due to the company's North American operations where
Wipeout was decommissioned and some other high ticket shows
(Biggest Loser and Big Brother Hispanic) were phased out to 2016.
ESG's scripted revenue was 22% below the company's expectations
as some of its UK, French and Spanish shows were phased out to
2016 and one of its long running daytime soap was decommissioned
in Italy.

Over the last year, ESG has turned its focus on scripted shows
and growing its distribution activities which incur longer
payment terms than ESG's usual non-scripted payment cycle -
typically 12-18 months for scripted vs. 3-6 months for non-
scripted. This has led to a large negative working capital of
EUR79 million at year end 2015. Coupled with higher than expected
2015 one off items (mainly related to the integration of the
Shine operations), this resulted in the company reporting
negative free cash flow of EUR(89)million for the year.

Despite the negative 2015 free cash flow ESG's liquidity is
expected to remain adequate, supported by a EUR125 million RCF of
which EUR88 million were available at year-end 2015. The
company's liquidity also benefits from the lack of material
scheduled amortization on the senior secured facilities as well
as their long-dated maturity profile with the RCF maturing in
2019, the senior secured first lien in 2021 and the second lien
in 2022.

The B3-PD PDR, at the same level as the CFR reflects our
assumption of a 50% recovery rate in line with our treatment of
covenant-lite all bank debt structures. The B2 rating on the
senior secured first lien facilities and the Caa2 rating on the
senior secured second lien reflect their respective and relative
priority ranking security over certain ESG assets.

Rating Outlook

The negative outlook reflects the weakness in the financial
metrics of the company and the need for ESG to demonstrate a
stabilization in trends in the coming 12-18 months and an
improvement in free cash flow generation.

What Could Change the Rating - Up

Upward pressure on the rating is limited given 2016 leverage
expectations. Upward pressure could develop should the company's
leverage decrease to below 6.5x (excluding overdrafts) on its
business plan such that debt/EBITDA falls to around 5x.

What Could Change the Rating - Down

Further downward pressure on the rating could develop should
ESG's leverage remain sustainably above 7.5x (excluding
overdrafts) or free cash flow generation remain negative leading
to a potential materially weaker liquidity profile.



===============
P O R T U G A L
===============


NOVO BANCO: Court Blocks Senior Bonds Transfer to Bad Bank
----------------------------------------------------------
Peter Wise at The Financial Times reports that a Portuguese court
has provisionally suspended a decision by the Bank of Portugal to
transfer some senior bonds from Novo Banco to a "bad bank".

The decision by a Lisbon court followed a request from Merrill
Lynch, one of several bondholders seeking to reverse the central
bank's decision, to suspend the transfer of liabilities from
Novo Banco to a vehicle for toxic assets, the FT relays.

According to the FT, the Bank of Portugal said it would
immediately apply to the court to lift the injunction.

The court has given the Bank of Portugal 10 days to respond to
the court's decision, the central bank, as cited by the FT, said,
adding that there had been no definitive decision in the case nor
on the validity of the provisional injunction itself.

In December, the central bank transferred five senior bonds with
a value of almost EUR2 billion from Novo Banco to the bad bank,
the FT recounts.  However, the Bank of Portugal said in its
statement that the injunction requested by Merrill Lynch applied
only to one series of bonds, the FT discloses.

The Bank of Portugal said the position of Novo Banco's assets
would not be affected by the court's measure, the FT notes.

Headquartered in Lisbon, Novo Banco, S.A. provides various
financial products and services to private, corporate, and
institutional customers.

                        *     *     *

As reported in the Troubled Company Reporter-Europe on Jan. 6,
2016, Moody's Investors Service downgraded to Caa1 from B2 the
senior debt and long-term deposit ratings of Portugal's Novo
Banco, S.A. and its supported entities.  This follows the Bank of
Portugal's (BoP) announcement on Dec. 29, 2015, that it had
approved the recapitalization of Novo Banco by transferring
EUR1,985 million of senior debt back to Banco Espirito Santo,
S.A. (BES unrated).  Moody's said the outlook on Novo Banco's
deposit and senior debt ratings is now developing.



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


BASHNEFT PJSOC: Moody's Confirms Ba1 Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service confirmed at Ba1 the corporate family
ratings (CFRs) of two integrated oil & gas companies -- Bashneft
PJSOC and Tatneft PJSC. The outlook on all the ratings is
negative.

These actions conclude the rating reviews initiated by Moody's on
January 22, 2016.

"Our decision to confirm the ratings of Bashneft and Tatneft
reflects our view that they will be able to maintain solid credit
metrics in a "lower-for-longer" oil price environment helped by
rouble weakness and a favorable tax system. However, their
ratings will remain constrained at Ba1 by the sovereign rating
and outlook," says Denis Perevezentsev, a Moody's Vice
President -- Senior Credit Officer.

On January 22, 2016, Moody's placed the ratings of 32 integrated
oil, exploration and production (E&P), and oilfield service (OFS)
companies in the EMEA region on review for downgrade. This
reflected the substantial drop of oil prices and the continued
oversupply in the global oil markets. Moody's also lowered its
oil price estimates on 21 January 2016 and now forecasts that
Brent oil price will average $33 per barrel of oil equivalent
(boe) in 2016 and $38/boe in 2017 (Moody's base case scenario),
with a slow recovery for oil prices over the next several years.
The drop in oil prices and weak natural gas prices have caused a
fundamental change in the energy industry and significantly
hampered the sector's ability to generate cash flow. Moody's
believes that this environment will continue for several years.

RATINGS RATIONALE

The confirmations primarily reflect (1) the favorable taxation
system that is tied to oil prices such that when they fall oil
and gas companies pay less tax, which in turn lifts the pressure
on their credit metrics; (2) their low production costs and the
rouble depreciation, which makes average realised prices
sustainable in rouble terms and supports companies' profitability
metrics; (3) companies' high portion of rouble-denominated
operating and capital expenditure, which contains cost inflation;
(4) the importance of the oil and gas industry for the Russian
economy; and (5) Moody's assessment of strong government support
for Bashneft and moderate support for Tatneft as government-
related issuers (GRIs).

However, Russian oil and gas companies' ratings remain
constrained by the sovereign rating and outlook.

RATIONALE FOR NEGATIVE OUTLOOK

The negative outlook on the ratings is in line with the negative
outlook for the sovereign rating and reflects the fact that a
potential further downgrade of Russia's sovereign rating may lead
to downgrade of the companies' ratings.

CONFIRMATION OF BASHNEFT'S Ba1 CFR and Ba1-PD PDR

Moody's confirmed the Ba1 CFR and the Ba1-PD probability of
default rating (PDR) of Bashneft PJSOC (Bashneft) with a negative
outlook.

To determine Bashneft's CFR, Moody's applies its GRI rating
methodology, according to which the CFR is driven by the
combination of (1) Bashneft's baseline credit assessment (BCA) of
ba2; (2) the Ba1 local-currency debt rating of the Russian
government with negative outlook; (3) the high dependence between
the state and the company; and (4) Moody's assumptions of a
strong level of support from the state in case of need.

Bashneft's rating reflects (1) its integration into refining and
marketing segment, with more than 70% of revenue generated from
sales of petroleum products; (2) strong financial metrics; and
(3) low production costs and positive production dynamics.

Bashneft is a state-owned integrated oil company operating
primarily in the Republic of Bashkortostan (Ba2 negative) in the
lower Volga region of Russia. Bashneft's reserves are
concentrated in Bashkortostan, in close proximity to the
company's refining and petrochemical complex. The company also
operates oil fields in the Tatarstan, Khanty-Mansi, Nenets and
Orenburg regions. The Russian government has a 50% stake in the
company while the Republic of Bashkortostan controls 25%. The
Russian government intends to privatise its stake in the company
during 2016. Privatisation terms have not been announced yet. For
2015, Bashneft's revenue amounted to RUB611 billion and its
Moody's-adjusted EBITDA to RUB138 billion.

CONFIRMATION OF TATNEFT'S Ba1 CFR and Ba1-PD PDR

Moody's confirmed the Ba1 CFR and the Ba1-PD probability of
default rating (PDR) of Tatneft PJSC (Tatneft) with a negative
outlook.

To determine Tatneft's CFR, Moody's applies its GRI rating
methodology, according to which the CFR is driven by the
combination of (1) Tatneft's BCA of ba1; (2) the Ba2 local-
currency debt rating of the Republic of Tatarstan with a negative
outlook; (3) the high dependence between the state and the
company; and (4) Moody's assumptions of a moderate level of
support from the state in case of need.

Tatneft's standalone rating reflects (1) the company's vast
reserves base; (2) sustainable production levels and strong
profitability of operations supported by favourable geology and
the availability of developed infrastructure; and (3) the
company's conservative financial policy and strong financial
metrics, cash generation and liquidity, underpinned by low
leverage and moderate capital expenditure requirements.

Tatneft, one of Russia's largest oil & gas companies, operates in
the Republic of Tatarstan (Ba2 negative). The government of
Tatarstan holds 35.9% of the company's voting stock plus a
"golden share", which enables the Tatarstan government to have
board representation and to veto certain major decisions. For
2015, Tatneft's revenue amounted to RUB553 billion and its
Moody's-adjusted EBITDA to RUB175 billion.

List of Affected Ratings

Confirmations:

Issuer: Bashneft PJSOC

-- Probability of Default Rating, Confirmed Ba1-PD

-- Corporate Family Rating, Confirmed Ba1

Issuer: Tatneft PJSC

-- Probability of Default Rating, Confirmed Ba1-PD

-- Corporate Family Rating, Confirmed Ba1

Outlook actions:

Issuer: Bashneft PJSOC

-- Outlook, Changed To Negative From Rating Under Review

Issuer: Tatneft PJSC

-- Outlook, Changed To Negative From Rating Under Review


SVYAZINVESTNEFTEKHIM OAO: Moody's Ba2 Rating Still Under Review
---------------------------------------------------------------
Moody's Investors Service said that the recent confirmation of
the Republic of Tatarstan's Ba2 sub-sovereign issuer rating
(negative outlook) has not concluded the downgrade review of
state-owned investment holding company Svyazinvestneftekhim OAO's
(SINEK) Ba2 rating.

SINEK's Ba2 rating reflects the company's strong linkages with
the government of Tatarstan and the fact that it holds government
stakes in key Tatarstan-based assets.

SINEK's rating remains on review for downgrade because, in
Moody's view, the company's standalone credit quality remains
under pressure from a number of factors that could potentially
push its rating below that of the sub-sovereign.

These factors include (1) SINEK's recent transfer to the
Tatarstan government of a number of valuable assets from its
investment portfolio, for which it has not yet been reimbursed;
(2) the increased support it has extended -- at government
request -- to Tatarstan-related businesses, in particular low-
rated Commercial Bank AK BARS, PJSC (Ak Bars Bank, B2 long-term
deposit and senior unsecured ratings with negative outlook, caa1
baseline credit assessment); and (3) risks associated with
SINEK's evolving debt position and the absence of direct
government guarantees for the debt.

In light of these factors, as part of its review Moody's will
focus on assessing SINEK's standalone credit strengths. In
particular, the rating agency will assess SINEK's anticipated
cash flow generation and various cash commitments, liquidity
management, evolving debt structure and credit linkages with Ak
Bars Bank.

In its review, Moody's will also consider the need for
adjustments to its assumptions regarding the Tatarstan
government's willingness and ability to provide support to SINEK,
in the event of need. Government support currently raises SINEK's
standalone credit quality by one notch bringing the company's
rating in line with that of the government.

The rating agency aims to finalize its review of SINEK by mid-
June, when visibility on the company's debt position and
developments, if any, in the government's stance on the company's
mission becomes clearer.



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


GESTAMP AUTOMOCION: Moody's Hikes Corporate Family Rating to Ba2
----------------------------------------------------------------
Moody's Investors Service upgraded the Corporate Family Rating
(CFR) of Gestamp Automocion, S.A. to Ba2 from Ba3 and the
Probability of Default Rating (PDR) to Ba2-PD from Ba3-PD. At the
same time the rating agency upgraded the rating of the EUR500
million and $350 million senior secured notes due in May 2020
issued by Gestamp Funding Luxembourg S.A. to Ba3 from B1. The
outlook on the ratings remains stable.

List of Affected Ratings:

Upgrades:

Issuer: Gestamp Automocion, S.A.

-- Corporate Family Rating, Upgraded to Ba2 from Ba3

-- Probability of Default Rating, Upgraded to Ba2-PD from Ba3-PD

Issuer: Gestamp Funding Luxembourg S.A.

-- BACKED Senior Secured Regular Bond/Debenture, Upgraded to Ba3
    from B1

Outlook Actions:

Issuer: Gestamp Automocion, S.A.

-- Outlook, Remains Stable

Issuer: Gestamp Funding Luxembourg S.A.

-- Outlook, Remains Stable

RATINGS RATIONALE

The rating action was prompted by the steady improvement in key
credit metrics Gestamp showed since rating assignment in 2013,
positive sector fundamentals, and Moody's expectation that this
will translate into a further improvement in Gestamp's key credit
metrics during 2016, so that the rating will be solidly
positioned in the Ba2 rating category.

"In consideration of the strong competitive position of the
company, reflective of its technological strength and continuous
focus on R&D and innovation, and which supported improved
operating profitability and lower leverage, Moody's today
upgraded Gestamp by one notch to Ba2", commented Oliver Giani,
Moody's lead analyst for the European automotive supplier
industry. "The decision was supported by Moody's positive outlook
on the European automotive supplier industry, which is expected
to organically grow revenues and EBITA by more than 5% during
2016".

Gestamp's Ba2 CFR is supported by (i) the company's solid
business profile reflecting strong and growing market positions,
technology leadership and a diversified base of established
customer relationships, (ii) a relatively stable margin
generation through the cycle and (iii) a strong pipeline of new
business mirrored by a consistently high capex level leading to
the expectation of further improving credit metrics.

At the same time the ratings are constrained by (i) the negative
free cash flow generation as a result of the high capex spending
due to expansion programmes, (ii) the dependency on cyclical new
car production due to lack of aftermarket business and (iii) the
complexity resulting from Gestamp not only being a subsidiary of
Acek, Desarrollo y Gestion Industrial, S.L. (unrated, formerly
Corporacion Gestamp, S.L.) but also having material related party
transactions in its books.

Gestamp is the market leader in a relatively fragmented industry,
competing with auto suppliers, such as Magna International Inc.
(Baa1, positive), or Benteler (unrated), but also with in-house
production of Auto OEMs. According to Gestamp, its three largest
customers account for 48% of total turnover, which is however
largely in line with general market. Despite its growth
initiatives taken recently, it is still dependent on the
development of the car markets in Europe, generating around 60%
of turnover in Europe (Russia and Turkey included). However,
Gestamp is benefitting from the ability to apply advanced
technologies which improve the strength of its products and, at
the same time, lead to a reduction in the overall weight
("Advanced High Strength Steels"), mirrored by growth rates in
the past two years significantly ahead of market growth.

Moody's considers Gestamp's liquidity position to be adequate. We
expect the company's cash outflow for the twelve months period
ending in December 2016 including capital expenditure, dividends,
working capital and working cash required to run the business, to
add up to approximately EUR900 million. This should be covered by
the company's funds from operations estimated to exceed EUR600
million during 2016, full availability under the company's EUR280
million 5-year working capital facility maturing in March 2020
and EUR356 million cash on hand as per 31 December 2015.

The stable outlook reflects our expectation that Gestamp will be
able to further improve profitability from currently 5.5% (2015)
to around 6.0%-6.5% EBITA margin. Concurrently, we expect that
leverage will also further improve to levels of around 3x, which
we deem commensurate with the Ba2 Corporate Family Rating despite
continued negative free cash flow generation due to its sizeable
capital expenditures to fund organic growth. We assume that high
capex levels will prolong at least for the next 2-3 years and
partially be funded by raising further debt.

Moody's would consider a positive rating action should Gestamp
manage to achieve an adjusted EBITA-margin of 7% (5.5% as of
December 2015) on a sustainable basis and reduce debt/EBITDA
towards 2.5x (FY 2015: 3.3x). Moreover, an upgrade would require
Free Cash Flow to turn positive and improve FCF/debt toward low
single digit sustainably despite of the planned capital
expenditures to support further growth. A rating downgrade would
be considered should Gestamp fail to improve its EBITA margin
towards 6% or if leverage would exceed 3.5x debt/EBITDA
sustainably. Likewise, a deterioration of its liquidity profile
through more significant negative Free Cash Flow could result in
a downgrade.

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

Gestamp Automocion, S.A., headquartered in Madrid / Spain,
designs, develops, and manufactures metal components for the
automotive industry. The company, which generated EUR7.0 billion
revenues during 2015, employs around 33,000 employees and
operates 95 plants and 12 R&D centers in 20 countries.

Gestamp is owned by the Riberas family, which holds, through
Acek, Desarrollo y Gestion Industrial, S.L. (formerly Corporacion
Gestamp, S.L.) and Risteel Corporation, B.V. ("Risteel"), 100% of
the ordinary shares of Gestamp.


KUTXABANK SA: Moody's Hikes Deposit & Senior Debt Ratings to Ba1
----------------------------------------------------------------
Moody's Investors Service upgraded Kutxabank S.A.'s long-term
deposit and senior debt ratings to Ba1 from Ba2. The rating
agency has also upgraded: (1) The bank's baseline credit
assessment (BCA) and adjusted BCA to ba1 from ba2; (2) the bank's
subordinated program ratings to (P)Ba2 from (P)Ba3; and (3) the
bank's Counterparty Risk Assessment (CR Assessment) to
Baa2(cr)/Prime-2(cr) from Baa3(cr)/Prime-3(cr). The outlook on
the long-term deposit and senior debt ratings remains stable.

The bank's Not Prime short-term deposit rating was unaffected by
today's rating action.

This rating action reflects the improvement of Kutxabank's credit
fundamentals, notably in terms of asset risk and capital.

RATINGS RATIONALE

-- RATIONALE FOR UPGRADING THE BCA

The upgrade of Kutxabank's BCA to ba1 from ba2 reflects the
bank's improved credit fundamentals, notably in terms of asset
risk and capital. Since 2014, Kutxabank has displayed a sustained
improvement in its asset risk metrics, with the non-performing
loan (NPL) ratio of Kutxabank declining to 8.7%, which stands
below the system's average of 10.1%, and 208 bps below the 10.7%
reported as at end-December 2014. Moody's also notes that
Kutxabank has been able to reduce the level of problematic
exposures (measured as NPLs + foreclosed real estate assets +
performing refinanced loans), which accounted for 93.5% of the
bank's shareholder equity and loss reserves as of end-December
2015. This ratio is well below the 121.7% reported at end-
December 2014 and also compares favorably with the estimated
system's average of 103% (as of June 2015, latest system data
available). The improvement of the bank's asset risk indicators
is explained partially by the sale of EUR873 million of
problematic assets to a private investment fund in the first half
of 2015 but also by the sound recovery of the Spanish economy.

In upgrading Kutxabank's ratings, Moody's has also taken into
account the bank's improved capital buffers, which stand amongst
the highest of Spanish banks, with the regulatory common equity
tier 1 (CET1) ratio increasing to 14.6% at end-December 2015 from
12.7% a year earlier on a phased-in basis and its fully-loaded
capital ratio that has increased to 14.3% from 12.5% during the
same period. This positive trend is visible as well in Moody's
tangible common equity (TCE) ratio, which now stands at 11.4%, up
from 9.9%, driven by the bank's asset de-risking strategy,
continued balance sheet deleveraging and increased retained
profits. Moody's also acknowledges Kutxabank's capacity to
increase capital in case of need through the various capital
levers the bank displays (i.e. divestment of its large industrial
portfolio and/or sale of non-core banking assets) and that unlike
many of its domestic peers have not been used during the recent
financial crisis.

Despite the mentioned improvements, Moody's notes that
Kutxabank's ba1 BCA also reflects: (1) A still high level of
problematic exposures in absolute terms and relative to capital
buffers when compared to other European banks in the same BCA
level; (2) pressures on top line revenues given the bank's focus
on the mortgage segment (70% of total loans as of end-December
2015) and against a backdrop of very low interest rates and
subdued business volumes in Spain; and (3) relevant contribution
of dividends from the bank's large stake in the Spanish utility
company Iberdrola S.A. (Baa1 positive), which represented 14.6%
of Kutxabank's pre-provision income at end-December 2015.

-- RATIONALE FOR UPGRADING THE LONG-TERM DEPOSIT AND SENIOR DEBT
    RATINGS

The upgrade of Kutxabank's long-term deposit and senior debt
ratings to Ba1 from Ba2 reflects: (1) The upgrade of the bank's
BCA and adjusted BCA to ba1 from ba2; (2) the result from the
rating agency's Advanced Loss-Given Failure (LGF) analysis which
results in an unchanged no uplift for the deposits and senior
debt ratings; and (3) Moody's assessment of low probability of
government support for Kutxabank, which results in no uplift for
the deposit and the senior debt ratings.

-- RATIONALE FOR UPGRADING THE CR ASSESSMENT

As part of today's rating action, Moody's has also upgraded to
Baa2(cr)/Prime-2 (cr) from Baa3(cr)/Prime-3(cr) the CR Assessment
of Kutxabank, two notches above the adjusted BCA of ba1. The CR
Assessment is driven by the banks' adjusted BCA, low likelihood
of systemic support and by the cushion against default provided
to the senior obligations represented by the CR Assessment by
subordinated instruments amounting to 8% of tangible banking
assets.

-- RATIONALE FOR THE STABLE OUTLOOK

The outlook on Kutxabank's deposit and senior debt ratings is
stable, reflecting Moody's expectations that Spain's improved
economic conditions will help to preserve current trends in the
bank's credit fundamentals.

WHAT COULD CHANGE THE RATING - UP

The bank's ratings could be upgraded as a consequence of: (1)
Further significant improvement of asset risk indicators, namely
a material reduction of the stock of problematic assets; (2)
stronger TCE levels; and (3) a sustained recovery of recurrent
profitability levels.

Kutxabank's deposit and senior debt ratings could also change due
to movements in the loss-given failure faced by these securities.

WHAT COULD CHANGE THE RATING - DOWN

Downward pressure on the bank's BCA could develop as a result of:
(1) The reversal in current asset risk trends with an increase in
the stock of NPLs and/or other problematic exposures; and (2) a
weakening of Kutxabank's internal capital-generation and risk-
absorption capacity as a result of subdued profitability levels.

As the bank's debt and deposit ratings are linked to the
standalone BCA, any change to the BCA would likely also affect
these ratings.

Kutxabank's deposit and senior debt ratings could also change due
to movements in the loss-given failure faced by these securities.

LIST OF AFFECTED RATINGS

Issuer: Kutxabank, S.A.

Upgrades:

  Adjusted Baseline Credit Assessment, upgraded to ba1 from ba2

  Baseline Credit Assessment, upgraded to ba1 from ba2

  Short-term Counterparty Risk Assessment, upgraded to P-2(cr)
  from P-3(cr)

  Long-term Counterparty Risk Assessment, upgraded to Baa2(cr)
  from Baa3(cr)

  Subordinate Medium-Term Note Program , upgraded to (P)Ba2 from
  (P)Ba3

  Senior Unsecured Medium-Term Note Program, upgraded to (P)Ba1
  from (P)Ba2

  Senior Unsecured Regular Bond/Debenture, upgraded to Ba1 Stable
  from Ba2 Stable

  Long-term Deposit Rating, upgraded to Ba1 Stable from Ba2
  Stable

Outlook Actions:

Outlook remains Stable

Issuer: Caja Vital Finance B.V.

Upgrades:

  Backed Senior Unsecured Medium-Term Note Program, upgraded to
  (P)Ba1 from (P)Ba2

  Backed Senior Unsecured Regular Bond/Debenture, upgraded to Ba1
  Stable from Ba2 Stable

Outlook Actions:

Outlook remains Stable


REPSOL SA: Egan-Jones Lowers Sr. Unsecured Ratings to B
-------------------------------------------------------
Egan-Jones Ratings Agency downgraded the local currency and
foreign currency senior unsecured ratings on debt issued by
Repsol SA to B+ from BB- on April 29, 2016.

Based in Madrid, Spain, Repsol S.A., through subsidiaries,
explores for and produces crude oil and natural gas, refines
petroleum, and transports petroleum products and liquefied
petroleum gas (LPG).  The Company retails gasoline and other
products through its chain of gasoline filling stations.



===========
T U R K E Y
===========


DENIZBANK AS: Moody's Confirms Ba2 Currency LT Deposit Ratings
--------------------------------------------------------------
Moody's Investors Service announced that it has confirmed the Ba2
local and foreign currency long-term deposit ratings with a
negative outlook and the ba2 adjusted baseline credit assessment
(BCA) of Denizbank A.S.

At the same time Moody's has confirmed the Counterparty Risk (CR)
Assessment of Ba1(cr). The bank's short term ratings and its
standalone ba3 BCA were not affected from this rating action.

Moody's says that the confirmation results from the confirmation
of the ratings and standalone BCA of its Sberbank (FC Deposits:
Ba2 negative/Debt: Ba1 negative; BCA: ba2), Denizbank's Russia-
based parent, which owns 99.9% of the Turkish subsidiary.

RATINGS RATIONALE

The primary driver for the confirmation of Denizbank's long-term
ratings is the prior confirmation of the ratings of its direct
parent bank, Sberbank, from which it receives uplift due to our
affiliate support assumptions. Moody's maintains its assessment
of the high probability of parental support for Denizbank
resulting in a one-notch uplift from the bank's ba3 BCA. Moody's
bases the uplift on Sberbank's majority ownership and the history
of capital injections in Denizbank.

The negative outlook on the long-term ratings is aligned with the
outlook on the support provider's rating.

WHAT COULD MOVE THE RATINGS UP/DOWN

As noted by the negative outlook, upside potential for
Denizbank's deposit ratings is currently limited.

However, in the medium term, (1) generating a stronger core
capital position, (2) sustainable growth trends funded by stable
funding, and (3) improvement in the domestic operating
environment could positively influence Denizbank's ratings.

Downward pressure on the standalone rating could develop in case
of (1) further deterioration in core capital and/or a material
increase in funding dependence on the parent (2) a material
decline in profitability; (3) greater-than-expected deterioration
in asset quality; or (4) significant changes in Denizbank's
strategy resulting in an increase in the bank's risk appetite.

Downward pressure would be exerted on Denizbank's supported
ratings in the event of: (1) a downgrade of the BCA of Sberbank;
and/or (2) adverse changes in Moody's affiliate support
assumptions.



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


BHS GROUP: Lord Grabiner Set to Face Inquiry Over Collapse
----------------------------------------------------------
Ashley Armstrong and James Quinn at The Daily Telegraph report
that Lord Grabiner, the chairman of Arcadia, is due to be called
to help MPs to understand why BHS was sold for GBP1 to Retail
Acquisitions 13 months before its dramatic collapse.

The Daily Telegraph understands that Lord Grabiner, who has
chaired Sir Philip Green's retail conglomerate since 2002, will
be asked to appear before the House of Commons Business,
Innovation and Skills committee.

Iain Wright MP, who chairs the committee, is understood to want
to call all those involved in the situation, as well as advisers,
The Daily Telegraph discloses.  Lord Grabiner is also a non-
executive director of Goldman Sachs, the Wall Street bank, which
will also be invited to give evidence to MPs over its role in the
sale of BHS, The Daily Telegraph notes.

As reported by the Troubled Company Reporter-Europe on April 26,
2016, Reuters related that BHS was placed into administration on
April 25.  Once a mainstay of the British high street, BHS has
been in decline for years, unable to keep up with demand for fast
fashion, online sales and improved customer services, Reuters
disclosed.  Saddled with over 1 billion pounds of debt, including
the pension deficit, BHS failed to raise the additional funds it
required, particularly from planned asset sales, to meet all its
contractual payments, prompting the administration process,
according to Reuters.

BHS Group is a department store chain.  The company employs
10,000 people and has 164 shops.


BHS GROUP: Mike Ashley Eyes Rescue Bid for Business
---------------------------------------------------
Ashley Armstrong and Ben Marlow at The Telegraph report that
Mike Ashley has resurrected an ambitious bid for BHS Group, which
would see the Sports Direct billionaire save the stricken high
street chain from the scrapheap, its entire store estate kept
open and thousands of jobs preserved.

The tycoon was in talks about an eleventh-hour rescue of the
retailer last weekend but was unable to agree a deal, forcing its
owners to call in the administrators on April 25 amid a fatal
cash shortage, The Telegraph relates.

However, Mr. Ashley has confirmed in a statement this weekend
that his plans to buy BHS are still alive, and that his proposal
envisages the entire chain being salvaged, The Telegraph notes.

Mr. Ashley, told The Telegraph: "Any continuing interest that we
have in BHS would be on the basis that we would anticipate that
there would not be any job losses, including jobs at head office,
and that all stores would remain open."

As reported by the Troubled Company Reporter-Europe on April 26,
2016, Reuters related that BHS was placed into administration on
April 25.  Once a mainstay of the British high street, BHS has
been in decline for years, unable to keep up with demand for fast
fashion, online sales and improved customer services, Reuters
disclosed.  Saddled with over 1 billion pounds of debt, including
the pension deficit, BHS failed to raise the additional funds it
required, particularly from planned asset sales, to meet all its
contractual payments, prompting the administration process,
according to Reuters.

BHS Group is a department store chain.  The company employs
10,000 people and has 164 shops.


FINSBURY SQUARE 2016-1: Moody's Assigns Ca Rating to Cl. X Debt
---------------------------------------------------------------
Moody's Investors Service has assigned definitive long-term
credit ratings to Notes issued by Finsbury Square 2016-1:

GBP299,200,000 Class A Mortgaged Backed Floating Rate Notes due
February 2058, Definitive Rating Assigned Aaa (sf)

GBP15,840,000 Class B Mortgaged Backed Floating Rate Notes due
February 2058, Definitive Rating Assigned Aa1 (sf)

GBP15,840,000 Class C Mortgaged Backed Floating Rate Notes due
February 2058, Definitive Rating Assigned A1 (sf)

GBP10,560,000 Class D Mortgaged Backed Floating Rate Notes due
February 2058, Definitive Rating Assigned Baa1 (sf)

GBP10,560,000 Class E Mortgaged Backed Floating Rate Notes due
February 2058, Definitive Rating Assigned Caa2 (sf)

GBP4,400,000 Class X Floating Rate Notes due February 2058,
Definitive Rating Assigned Ca (sf)

Moody's has not assigned ratings to the GBP 7,040,000 Class Z.

The portfolio backing this transaction consists of UK prime
residential loans originated by Kensington Mortgage Company
Limited. Moody's assigned provisional ratings to these notes on
15 April 2016.

On the closing date Kensington Mortgage Company Limited sold the
portfolio to Kayl PL S.a.r.l. and Koala Warehouse Limited (the
"Sellers", not rated). In turn the Sellers sold the portfolio to
Finsbury Square 2016-1 PLC.

RATINGS RATIONALE

The rating take into account the credit quality of the underlying
mortgage loan pool, from which Moody's determined the MILAN
Credit Enhancement and the portfolio expected loss, as well as
the transaction structure and legal considerations. The expected
portfolio loss of 2% and the MILAN required credit enhancement of
12% serve as input parameters for Moody's cash flow model and
tranching model, which is based on a probabilistic lognormal
distribution.

Portfolio expected loss of 2%: this is higher than the UK Prime
RMBS sector average and was evaluated by assessing the
originator's limited historical performance data and benchmarking
with other UK prime RMBS transactions. It also takes into account
Moody's stable UK Prime RMBS outlook and the UK economic
environment.

MILAN CE of 12%: this is higher than the UK Prime RMBS sector
average and follows Moody's assessment of the loan-by-loan
information taking into account the historical performance
available and the following key drivers: (i) although Moody's
have classified the loans as prime, it believes that borrowers in
the portfolio often have characteristics which could lead to them
being declined from a high street lender; (ii) the weighted
average CLTV of 71.35%, (iii) the very low seasoning of 0.54
years, (iv) the proportion of interest-only loans (20.51%); and
(v) the absence of any, right-to-buy, shared equity, fast track
or self-certified loans.

At closing the mortgage pool balance consists of GBP 351.66
million of loans. The General Reserve Fund is equal to 2.0% of
the principal amount outstanding of Class A and E notes. This
amount is only be available to pay senior expenses, Class A and D
note interest and to cover losses. After class D has been fully
amortized, the Reserve Fund will be equal to 0%.The Reserve fund
will be released to the revenue waterfall on the final legal
maturity or after the full repayment of Class E notes. If the
Reserve fund is less than 1.5% of the principal outstanding of
class A to E, a liquidity reserve fund will be funded with
principal proceeds up to an amount equal to 2% of the Classes A
and B.

Operational risk analysis: Kensington Mortgage Company Limited
("KMC", not rated) is acting as servicer. KMC sub-delegates
certain primary servicing obligations to Home Loan Management
(HML, not rated). In order to mitigate the operational risk,
there is a back-up servicer facilitator, Structured Finance
Management Limited (Not rated), and Wells Fargo Bank, N.A.
(Aa1/P-1/Aa1(cr)) is acting as a back-up cash manager from close.
To ensure payment continuity over the transaction's lifetime the
transaction documents including the swap agreement incorporate
estimation language whereby the cash manager can use the three
most recent servicer reports to determine the cash allocation in
case no servicer report is available. The transaction also
benefits from principal to pay interest for Class A to D notes,
subject to certain conditions being met.

Interest rate risk analysis: BNP Paribas (A1/P-1/Aa3(cr)) is
acting as the swap counterparty for the fixed-rate mortgages in
the transaction. The floating-rate loans are unhedged and Moody's
has taken into consideration the absence of basis swap in its
cash flow modelling.

The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage. Please see Moody's Approach to Rating RMBS Using the MILAN
Framework for further information on Moody's analysis at the
initial rating assignment and the on-going surveillance in RMBS.

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

Significantly different loss assumptions compared with our
expectations at close due to either a change in economic
conditions from our central scenario forecast or idiosyncratic
performance factors would lead to rating actions. For instance,
should economic conditions be worse than forecast, the higher
defaults and loss severities resulting from a greater
unemployment, worsening household affordability and a weaker
housing market could result in downgrade of the ratings.
Deleveraging of the capital structure or conversely a
deterioration in the notes available credit enhancement could
result in an upgrade or a downgrade of the ratings, respectively.

Stress Scenarios:

Moody's Parameter Sensitivities: If the portfolio expected loss
was increased from 2% to 4% of current balance, and the MILAN CE
was increased from 12% to 16.8%, the model output indicates that
the Class A notes would still achieve Aaa(sf) assuming that all
other factors remained equal. Moody's Parameter Sensitivities
quantify the potential rating impact on a structured finance
security from changing certain input parameters used in the
initial rating. The analysis assumes that the deal has not aged
and is not intended to measure how the rating of the security
might change over time, but instead what the initial rating of
the security might have been under different key rating inputs.

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed.

The analysis assumes that the deal has not aged and is not
intended to measure how the rating of the security might migrate
over time, but rather how the initial rating of the security
might have differed if key rating input parameters were varied.
Parameter Sensitivities for the typical EMEA RMBS transaction are
calculated by stressing key variable inputs in Moody's primary
rating model.


                            *********

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.


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