TCREUR_Public/160511.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Wednesday, May 11, 2016, Vol. 17, No. 093


                            Headlines


F R A N C E

BISOHO SAS: Moody's Assigns Provisional B2 CFR, Outlook Positive
BISOHO SAS: S&P Assigns Preliminary B CCR, Outlook Stable
KKR RETAIL: S&P Revises Outlook to Stable & Affirms B CCR


I T A L Y

ASSICURAZIONI GENERALI: Egan-Jones Assigns BB+ Sr. Unsec. Rating
SAIPEM SPA: S&P Lowers CCR to BB+, Outlook Negative


L U X E M B O U R G

ENDO LUXEMBOURG: Moody's Lowers CFR to B1, Outlook Negative
PINNACLE HOLDCO: S&P Lowers CCR to B-, Outlook Negative


N E T H E R L A N D S

E-MAC DE 2005-I: Moody's Raises Rating on Class C Notes to Ba3


N O R W A Y

SILK BIDCO: Moody's Affirms B2 CFR & Changes Outlook to Stable


R U S S I A

BCS HOLDING: S&P Affirms B-/C Ratings, Outlook Stable
CROSSINVESTBANK JSCB: Bank of Russia Provides Update on Probe


S P A I N

IM TARJETAS: DBRS Confirms C(sf) Rating on Class B Notes


S W E D E N

VOLVO CAR: S&P Assigns BB Long-Term CCR, Outlook Positive


T U R K E Y

TURKEY: S&P Revises Outlook to Stable & Affirms BB+/B Ratings


U N I T E D   K I N G D O M

BEALES: Set to Close Three Stores Following CVA Deal
BESTWAY UK: S&P Lowers CCR to B, Outlook Remains Negative
BHS GROUP: PPF Learnt of Sale in Newspapers, Committee Hears
COGNITA BONDCO: Moody's Affirms B2 CFR & Changes Outlook to Neg.
HARKAND GROUP: Vard Evaluates Options Following Administration

HONOURS PLC 2: Moody's Puts Cl. D Notes' Ba2 Rating Under Review
TATA STEEL UK: Seven Bids Move on to Next Stage of Sales Process
TATA STEEL UK: JSW Among Seven Bidders for Operations


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F R A N C E
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BISOHO SAS: Moody's Assigns Provisional B2 CFR, Outlook Positive
----------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B2
corporate family rating to BiSoho S.A.S., the holding company
established by Chinese textile manufacturer Shandong Ruyi
Technology Group in connection with its proposed acquisition of
SMCP S.A.S, the French apparel retailer.  Concurrently, Moody's
has assigned a provisional (P)B2 rating to the proposed fixed and
floating rate senior secured notes with an aggregate principal of
EUR470 million to be issued by the company to part fund the
acquisition.  The outlook on the ratings is positive.

The rating action follows the announcement on March 31, 2016,
that an exclusivity agreement has been signed for a transaction
under which Ruyi will become the majority owner of SMCP.  The
transaction will see the existing majority owner, private equity
firm KKR, and SMCP's management retain minority stakes and
implies an enterprise value for SMCP of approximately EUR1.3
billion.

The ratings have been assigned on the basis of Moody's
expectations that the transaction will close as expected.
Moody's will withdraw the existing B2 CFR and B1-PD PDR ratings
of KKR Retail Partners Midco S.a.r.l. and B3 instrument rating of
SMCP S.A.S upon consummation of the acquisition and repayment of
the existing debt.  In the meantime, these ratings have been
confirmed with a positive outlook.  This action concludes Moody's
review which was initiated in March 2016 following the
announcement that SMCP was formally exploring the possibility of
an IPO.

Moody's issues provisional ratings in advance of the final sale
of securities and such ratings reflect Moody's preliminary credit
opinion regarding the transaction only.  Upon a conclusive review
of the final documentation, Moody's will endeavor to assign a
definitive CFR and definitive ratings to the senior secured
notes. Definitive ratings may differ from provisional ratings.

                         RATINGS RATIONALE

"The ongoing success of SMCP across its various brands and in
multiple countries evidences the strength of its business model
and brand positioning within the affordable luxury niche", said
David Beadle, a Moody's Vice President and lead analyst for SMCP.
"While there are various execution risks, not least in terms of
fashion content, the risks associated with expansion into new
locations and countries are somewhat mitigated by the company's
established model of entering new areas via concessions first.
We expect the company's strategy in terms of design, sourcing,
pricing, and international roll-out to remain unchanged under the
ownership of Ruyi", he added.

BiSoho's (P)B2 CFR recognizes the (1) good brand recognition of
the core SMCP brands; (2) solid sales growth recorded in recent
years, underpinned by positive like-for-like (LFL) sales data;
and (3) solid profitability, which has increased significantly in
2015.  On the basis of 2015 results the proposed transaction will
result in pro-forma leverage of 4.9x, as adjusted by Moody's and,
in view of the expected deleveraging trajectory, based on
continuation of recent trends in revenue development and stable
margins, the rating agency considers the company is well
positioned in the B2 rating category.

Balancing these elements are (1) SMCP's modest scale and its
earnings concentration on the French market and a limited number
of brands; (2) SMCP's exposure to fashion risk and (3) the highly
fragmented and competitive nature of the apparel sector in the
markets where the company operates.  In addition, the rating
agency cautions that SMCP's fast-paced expansion strategy,
particularly in new markets, creates execution risks and results
in sustained high capex and has historically constrained free
cash flow generation.

Following the change of control transaction, Moody's expects the
company to have an adequate liquidity position, which on a pro-
forma basis as of December 2015, comprised cash on balance sheet
of EUR20 million and access to a new EUR70 million revolving
credit facility (RCF), expiring in 2022.  A number of bilateral
short and medium term credit facilities totaling approximately
EUR76 million are being cancelled as part of the refinancing.
The new RCF will, like the one it replaces, be subject to a
consolidated net debt to EBITDA financial covenant under which
headroom is significant, and which is tested only if the facility
is drawn by more than 25%.

The (P)B2 rating assigned to BiSoho's EUR470 million senior
secured notes, the same as the CFR, reflects the fact that the
notes are the largest single component of the rated group's
financial and non-financial debt.  After the change of ownership,
the new RCF will be the only other debt obligation of the group.
The notes and the revolver are both guaranteed by certain group
holding and operating companies, and benefit, on a first-priority
basis, from certain share pledges.  However, under the terms of
an inter-creditor agreement the RCF ranks ahead of the senior
secured notes upon enforcement.  The rating agency's assessment
factors in significant limitations on the enforcement of the
guarantees and collateral under French law which mean that in
practice non-debt obligations of operating subsidiaries,
including trade payables and operating lease commitments, could
rank ahead of the issuer's debt.

The positive rating outlook reflects Moody's view that SMCP will
sustain profitability margins while continuing to record positive
like-for-like sales and successfully execute its ongoing
significant store roll-out program.  On this basis Moody's
expects SMCP to generate positive free cash flow and a steady
deleveraging, tempered somewhat on a gross adjusted basis by
ongoing growth in adjusted debt in respect of lease commitments
associated with the expanding store base.  The outlook also
reflects Moody's understanding that the change of ownership will
not result in any change of strategic direction in terms of
design, sourcing, pricing, or in terms of geographic expansion,
nor any change in financial policy in terms of shareholder
distributions.

WHAT COULD CHANGE THE RATING -- UP/DOWN

The ratings could be upgraded if SMCP continues its recent
trajectory of profitable growth, maintains above GDP LFL sales
growth and generates sustained positive free cash flow and
improved credit metrics, such as adjusted debt/EBITDA towards
4.0x and adjusted EBIT/interest expense approaching 2.0x.

Conversely, the ratings could encounter downward pressure if
there is weakness in SMCP's LFL sales, evidence of poor
execution, or deterioration in either profitability or free cash
flow generation.  Quantitatively, an adjusted debt/EBITDA ratio
above 5.5x could trigger a downgrade.

PRINCIPAL METHODOLOGY

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

Headquartered in Paris, SMCP is an apparel retailer focused on
the affordable luxury segment (their average item selling price
is c.EUR215) through three brands: Sandro, Maje, and Claudie
Pierlot. As of Dec. 31, 2015, the company had 906 directly
operated points of sale, including 334 stores and 437
concessions, with a further 212 points of sale operated by
distribution partners.  With 466 points of sale, France remains
the single most important country, although the company also has
presence in nine more European countries, North America, and in
Asia.  In the fiscal year ended Dec. 31, 2015, SMCP recorded net
sales (before deducting concession fees) of EUR 675.4 million and
reported EBITDA of EUR 106.5 million.


BISOHO SAS: S&P Assigns Preliminary B CCR, Outlook Stable
---------------------------------------------------------
S&P Global Ratings said that it assigned its preliminary 'B'
long-term corporate credit rating to BiSoho S.A.S., the parent of
France-based apparel retailer Groupe SMCP.  The outlook is
stable.

"At the same time, we assigned a preliminary 'B' issue rating to
BiSoho's proposed EUR470 million senior secured notes, which
BiSoho looks to issue as a combination of fixed-rate and
floating-rate notes.  The recovery rating on these instruments is
'3', reflecting S&P's expectation of meaningful (50%-70%)
recovery in the event of default.  S&P also assigned a
preliminary 'BB-' issue rating to BiSoho's proposed EUR70 million
super senior secured RCF.  The recovery rating on this instrument
is '1', reflecting S&P's expectation of very high (90%-100%)
recovery in the event of default.

The preliminary rating is subject to the successful issuance of
the senior notes and the RCF, S&P's review of the final
documentation.  If S&P Global Ratings does not receive the final
documentation within a reasonable time frame, or if the final
documentation departs from the materials S&P has already
reviewed, it reserves the right to withdraw or revise its
ratings.

The preliminary ratings reflect S&P's view of BiSoho's highly
leveraged financial risk profile and fair business risk profile,
that being the same underlying SMCP business that will be
acquired by BiSoho from KKR Retail Partners (B/Stable/--).
BiSoho is the recently created holding company that will be used
as the investment vehicle to acquire a majority stake in SMCP.

Importantly, S&P views the proposed change of ownership as
generally neutral from a credit perspective.  S&P do not view the
credit profile of the broader Shandong Ruyi Group to be a
constraint, nor does it provide any additional uplift to SMCP's
stand-alone credit profile.  In S&P's view, SMCP is a subsidiary
with a moderately strategic level of importance to its ultimate
parent, Shandong Ruyi Group.  S&P views the SMCP investment as
beneficial to Shandong Ruyi Group's longer-term strategy,
providing the group with investment diversification into the
European market, while also providing the potential for some
synergistic benefits such as supporting SMCP's continued
penetration strategy into Asia.

As part of the proposed transaction, SMCP has also announced
plans to refinance its current debt structure by issuing EUR470
million of senior secured notes which BiSoho looks to issue as a
combination of fixed-rate and floating-rate notes.  A new RCF of
EUR70 million will also be put in place.  Proceeds will be
partially used to fund the acquisition by BiSoho and to repay
existing SMCP debt.

In S&P's view, the proposed capital structure under new ownership
will result in a highly leveraged financial risk profile, with
S&P Global Ratings-adjusted debt to EBITDA of about 5.5x-6.0x.
The proposed capital structure includes EUR470 million senior
secured notes (which will be split between fixed and floating
rate note issuances) and a EUR70 million RCF, which will be
initially undrawn and used to support company's liquidity.  Also
forming part of the proposed capital structure is a EUR280
million payment-in-kind (PIK) shareholder loan instrument, which
S&P includes as debt in our ratio calculations -- excluding the
PIK instrument, SMCP's reported debt-to-EBITDA is expected to be
about 4.5x in fiscal 2016.

S&P continues to assess SMCP's business risk profile as fair,
albeit at the lower end of the category.  The group operates in
the highly fragmented affordable luxury segment, bearing inherent
fashion risk.  The company aims to minimize this risk by focusing
on already-existing trends, however, the company is exposed to
fashion trends, including the risk of missing or adopting a trend
too late.  Partially mitigating this risk is SMCP's underlying
business model, weighted heavily toward directly operated stores,
which represent 94% of sales.  This provides the company with
greater control and responsiveness, allowing it to capitalize on
market trends and meet customer demand.

S&P's base-case assumes:

   -- A slow but gradually improving French economy, with S&P's
      forecast of GDP growth of 1.3% in 2016 and 1.5% in 2017;

   -- Continued execution of the store network expansion
      strategy, with the opening of about 90 new points of sale
     annually;

   -- Positive like-for-like sales, together with store network
      expansion, enabling the company to achieve double-digit
      revenue growth over the next two years;

   -- Capital expenditure (capex) of EUR35 million-EUR45 million
      per year; and

   -- Continued cost control supporting the sustainability of
      EBITDA margins at about 26% on an S&P Global Ratings-
      adjusted basis.

Based on these assumptions, and following the expected completion
of the refinancing transaction, S&P arrives at these credit
measures over 2016 and 2017:

   -- Funds from operations (FFO) to debt of between 8%-12% in
      2016 and 2017;

   -- Adjusted debt to EBITDA of between 5.5x-6.0x in 2016,
      improving to between 5.2x-5.7x in 2017; and

   -- FOCF to debt of between 5%-10% in 2016 and 2017.

After the proposed issuance and refinancing, S&P assess SMCP's
liquidity position as adequate, based on S&P's expectation that
sources of funds will exceed uses by more than 1.2x over the next
12 months.  S&P expects that liquidity sources will continue to
exceed uses, even if EBITDA were to decline by 15%.

S&P anticipates these principal liquidity sources over the next
12 months:

   -- Post-transaction cash on balance sheet of EUR20 million;
   -- Committed and undrawn super senior RCFs of EUR70 million;
      and
   -- Forecast cash FFO of about EUR70 million.

S&P anticipates these principal liquidity uses over the same
period:

   -- Seasonal working capital swing of EUR25 million-
      EUR35 million;
   -- Year-on-year increase in working capital of about
      EUR15 million; and
   -- Capex of EUR35 million-EUR45 million.

S&P anticipates the group will maintain adequate headroom under
its financial covenants.

The stable outlook reflects S&P's view that the company will
continue to successfully execute its store expansion strategy,
which will be supported by positive like-for-like sales growth.
This is expected to translate into continued earnings growth and
positive FOCF generation, enabling the company to achieve EBITDA
interest coverage of about 2x.  It also reflects S&P's view that
the proposed change of ownership will not represent a major
change or have any detrimental impact on SMCP's strategy,
operations, or financial profile.

The ratings could be lowered should SMCP's store expansion
strategy -- particularly into new regions -- falter, resulting in
materially lower earnings and cash generation.  Any material
deterioration in profitability could also lead S&P to revise its
assessment of SMCP's business risk profile to weak from fair.  A
negative rating action could arise from the inability to sustain
positive FOCF or if adjusted EBITDA interest coverage fell
significantly, leading to a deterioration of the company's
liquidity position.

S&P views the potential for a positive rating action as remote
over the next 12 months.  This is due to S&P's expectations that,
upon exit of the current financial sponsors, KKR Retail Partners,
the rating on SMCP will likely become constrained by S&P's view
of the broader group credit profile of the Shandong Ruyi Group.
Any positive rating action would likely require a successful
operating and financial policy track record under new ownership,
as well as S&P's view of a stronger credit profile for the
broader group.


KKR RETAIL: S&P Revises Outlook to Stable & Affirms B CCR
---------------------------------------------------------
S&P Global Ratings said that it revised its outlook on KKR Retail
Partners Midco S.a.r.l., the majority owner of French-based
clothing retailer Groupe SMCP, to stable from negative.  At the
same time, S&P affirmed its 'B' long-term corporate credit rating
on the company.

S&P also affirmed its 'B' issue rating on KKR Retail Partners'
EUR290 million senior secured notes.  The recovery rating on this
debt is unchanged at '4', indicating S&P's expectation of average
recovery in the event of a payment default, in the higher half of
the 30%-50%.

The outlook revision reflects S&P's expectation that KKR Retail
Partners' operating performance will continue to improve and that
the company will maintain positive like-for-like sales growth
after a solid result for the full year of trading to Dec. 31,
2015, posting record sales growth of 33% and EBITDA growth of
greater than 35%.  Importantly, SMCP's performance over the past
12 months has enabled the company to meaningfully improve its
FOCF, which returned to positive in 2015, highlighted by a ratio
of FOCF to debt of about 10%.  SMCP has been able to achieve
continued momentum into the first quarter of 2016.

On March 31, 2016, SMCP announced that it had entered into an
exclusivity agreement with Shandong Ruyi Group to acquire a
majority 82% stake in SMCP.  It is S&P's understanding that the
proposed transaction would likely see the current owners and
management reinvest with a 8% stake alongside Shandong Ruyi
Group, while current financial sponsors KKR Retail Partners would
maintain a minority 10% stake in the company.  BiSoho S.A.S. is
the recently created holding company that will be used as the
investment vehicle to acquire Shandong Ruyi Group's majority
stake in SMCP.

S&P views the proposed change of ownership as neutral from a
credit perspective.  S&P do not view the credit profile of the
broader Shandong Ruyi Group to be a constraint nor does it
provide any additional uplift to SMCP's stand-alone credit
profile.  In S&P's view, SMCP is a subsidiary with a moderately
strategic level of importance to its ultimate parent, Shandong
Ruyi Group.  S&P views the SMCP investment to be consistent with
Shandong Ruyi Group's longer term strategy, providing the group
with investment diversification into the European market, while
also providing the potential for some synergistic benefits such
as supporting SMCP's continued penetration strategy into Asia.

As part of the proposed transaction, SMCP has also announced
plans to refinance its current debt structure by issuing EUR470
million of senior secured notes which BiSoho looks to issue as a
combination of fixed rate and a floating rate notes.  A new
revolving credit facility (RCF) of EUR70 million will also be put
in place.  Proceeds will be partially used to fund the
acquisition by BiSoho and to repay existing SMCP debt.

With a solid result in 2015, SMCP was able to generate positive
FOCF and achieve a meaningful level of deleveraging, highlighted
by a debt-to-EBITDA ratio of 4.4x on an S&P Global Ratings-lease-
adjusted basis for fiscal 2015.  Nonetheless, S&P's assessment of
SMCP's highly leveraged financial profile primarily reflects the
company's financial policy under KKR Retail Partners, who S&P
views as having an aggressive financial strategy to maximize
shareholder returns.

S&P continues to assess SMCP's business risk profile as fair,
albeit at the lower end of the category.  The group operates in
the highly fragmented affordable luxury segment, bearing inherent
fashion risk.  The company aims to minimize this risk by focusing
on already-existing trends, however, the company is exposed to
fashion trends, including the risk of missing or adopting a trend
too late.  Partially mitigating this risk is SMCP's underlying
business model, weighted heavily toward directly operated stores,
which represent over 94% of sales.  This provides the company
with greater control and responsiveness, allowing it to
capitalize on market trends and meet customer demand.

S&P's base-case assumes:

   -- A slow but gradually improving French economy, with S&P's
      forecast of GDP growth of 1.3% in 2016 and 1.5% in 2017;

   -- Continued execution of the store network expansion
      strategy, with the opening of about 90 new points of sale
      annually;

   -- Positive like-for-like sales, together with store network
      expansion, enabling the company to achieve double-digit
      revenue growth over the next two years;

   -- Capital expenditure (capex) of EUR35 million-EUR45 million
      per year; and

   -- Continued cost control supporting the sustainability of
      EBITDA margins at about 26% on an S&P Global Ratings-
      adjusted basis.

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

   -- Funds from operations (FFO) to debt of 12%-20% in 2016;
   -- Adjusted debt to EBITDA of about 4x in 2016; and
   -- FOCF to debt of 8%-12% in 2016.

S&P assess SMCP's liquidity as adequate, based on S&P's
expectation that sources of funds will exceed uses by more than
1.2x over the next 12 months.  S&P expects that liquidity sources
will continue to exceed uses, even if EBITDA were to decline by
15%.  S&P's adequate liquidity assessment also incorporates its
view that financial covenant headroom will be comfortable under
SMCP's existing capital structure.

S&P anticipates these principal liquidity sources over the next
12 months:

   -- Cash and cash equivalents of about EUR28 million as of
      Dec. 31, 2015;
   -- Cash FFO of about EUR70 million; and
   -- Undrawn bank facilities of about EUR70 million maturing
      beyond 12 months.

S&P anticipates these principal liquidity uses over the same
period:

   -- Short-term debt maturities of about EUR50 million;
   -- Seasonal working capital swing of EUR25 million-
      EUR35 million;
   -- Year-on-year increase in working capital of about
      EUR15 million; and
   -- Capex of EUR35 million-EUR45 million.

As part of the proposed transaction, SMCP has also announced
plans to refinance its current debt structure by issuing senior
notes out of the newly created entity, BiSoho.  A new RCF of
EUR70 million will also be put in place to support liquidity.
Proceeds will be partially used to fund the acquisition by BiSoho
and to repay existing SMCP debt.  S&P believes that the group
will continue to maintain adequate liquidity after the proposed
transaction.

The stable outlook reflects S&P's view that the company will
continue to successfully execute its store expansion strategy,
which will be supported by positive like-for-like sales growth.
This is expected to translate into continued earnings growth and
positive FOCF generation, enabling the company to achieve EBITDA
interest coverage of greater than 2x.  It also reflects S&P's
view that the proposed change of ownership will not represent a
major change or have any detrimental impact on SMCP's strategy,
operations, or financial profile.

The ratings could be lowered should SMCP's store expansion
strategy -- particularly into new regions -- falter, resulting in
materially lower earnings and cash generation.  Any material
deterioration in profitability could also lead S&P to revise its
assessment of SMCP's business risk profile to weak from fair.  A
negative rating action could arise from the inability to sustain
positive FOCF or if adjusted EBITDA interest coverage fell
significantly, leading to a deterioration of the company's
liquidity position.

S&P views the potential for a positive rating action as remote
over the next 12 months.  This is due to S&P's expectations that,
upon exit of the current financial sponsors, KKR Retail Partners,
the rating on SMCP will likely become constrained by S&P's view
of the broader group credit profile of the Shandong Ruyi Group.
Any positive rating action would likely require a successful
operating and financial policy track record under new ownership,
as well as S&P's view of a stronger credit profile for the
broader group.



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ASSICURAZIONI GENERALI: Egan-Jones Assigns BB+ Sr. Unsec. Rating
----------------------------------------------------------------
Egan-Jones Ratings Company assigned a BB+ senior unsecured rating
on debt issued by Assicurazioni Generali SpA on May 3, 2016.

Assicurazioni Generali S.p.A. offers life and non-life insurance
and reinsurance throughout the world.  The Company offers life,
health, accident, automobile, marine, aviation, transport, fire,
general liability, and credit insurance and reinsurance.  It is
the largest insurance company in Italy and third in the world.


SAIPEM SPA: S&P Lowers CCR to BB+, Outlook Negative
---------------------------------------------------
S&P Global Ratings said that it had lowered to 'BB+' from 'BBB-'
its long-term corporate credit rating on Italy-based engineering,
construction, and drilling company Saipem SpA, at the same time
converting the rating to final from preliminary and removing it
from CreditWatch negative, where S&P placed it on Feb. 4, 2016.
The outlook is negative.

S&P also lowered to 'BB+' from 'BBB-' its issue ratings on
Saipem's senior unsecured facilities, comprising a EUR1.6 billion
term-loan facility and a EUR1.5 billion revolving credit facility
(RCF).  All the issue ratings were simultaneously converted to
final and removed from CreditWatch negative.  The recovery rating
on these instruments is '3', signifying S&P's expectation of
meaningful recovery for lenders in the event of a payment
default, in the higher half of the 50%-70% range.

The downgrade reflects S&P's industry outlook and its more
cautious view of Saipem's future credit metrics, backlog, and
ability to sustain cash flow from operations without meaningful
declines.

"We have revised down our projections for Saipem's 2016-2017
earnings, particularly its EBITDA, funds from operations (FFO),
and cash flow from operations, due to the persistently
challenging market conditions that have affected our medium-term
forecasts for Saipem and its peers.  Our current base case now
points to FFO to debt at about 20% in 2016 and 15% in 2017,
against our previous assumption of 30% for the same periods.  We
estimate that EBITDA could be about EUR1.1 billion in 2016, as
backlog provides some visibility, but could then fall to about
EUR700 million-EUR800 million in 2017.  Consequently, we have
significantly revised our assessment of Saipem's financial risk
profile to aggressive from intermediate," S&P said.

"In our forecasts, we take into account the following oil price
assumption: Brent price at US$40 per barrel (/bbl) in 2016 and
US$45/bbl in 2017.  We believe that this weaker price environment
will negatively affect Saipem's performance, as oil and gas
exploration and production companies are cutting or postponing
capital spending, which is likely to reduce Saipem's EBITDA and
cash flow generation.  We also incorporate into our projections
our perception of increased risk related to contract extension,
renegotiation, or early termination," S&P noted.

As a positive, S&P factors in the benefit of significant
restructuring and cost reductions currently underway thanks to
the "fit for the future" program.  S&P nevertheless believes that
this will not offset the negative impact from lower demand and
reducing pricing trends across Saipem's markets.

S&P already factors in as another positive the recent successful
deleveraging of the company's capital structure, which, thanks to
a EUR3.5 billion capital increase and debt refinancing, led to
the company's net financial position decreasing to EUR2 billion
from EUR5.4 billion at year-end 2015.

S&P's fair assessment of Saipem's business risk profile reflects
S&P's view of the company's leading market positions globally in
the engineering and construction sector, both in the onshore and
offshore oil and gas activities.

S&P also notes its sizable backlog of about EUR14 billion as of
March 31, 2016, (about 1.2x 2015 revenues).  Additional
supporting factors are the asset and geographic diversity of
Saipem's range of services, which encompass drilling,
engineering, and construction activities.  Moreover, there are
some barriers to entry owing to some of the segments' capital
intensity.  Saipem's customer relationships and a comparably high
utilization rate in its drilling activities also support the
business risk assessment.

However, S&P's business risk assessment also reflects Saipem's
exposure to the oil and gas industry, which is cyclical and
competitive in nature.  Furthermore, S&P views Saipem's
profitability as somewhat weaker and more volatile than that of
key peers, and consider that it faces higher reputational risk
than many peers.  Other weaknesses include the predominantly
fixed-price nature of Saipem's contracts, potentially exposing
the company to cost overruns.  In addition, Saipem has some
customer concentration, and geographic concentration in the
Middle East and Africa, which represent more than 65% of the
company's backlog.

S&P's rating on Saipem factors in potential upside not captured
in S&P's base case (including potential disposals and large
advance payments on contracts not deducting gross debt in S&P's
analysis) and the relatively solid position of the business
compared with similarly rated peers, which results in a positive
one-notch rating adjustment to S&P's 'bb-' anchor.

S&P's rating also includes one notch of uplift to the stand-alone
credit profile assessment, due to group support.  It reflects
S&P's view that Saipem is a moderately strategic company to its
main shareholders--ENI Spa and Fondo Strategico Italiano.  S&P
assumes that these shareholders will continue to own a
significant share of Saipem and S&P believes that any further
substantial sell-down of ENI's stake would most likely happen
only if Saipem were to renew its operational track record on its
projects and improve profitability from the low levels seen in
recent years. Over the next two years, S&P therefore expects that
Saipem would likely receive some support from those two main
shareholders should it fall into financial difficulty.

The negative outlook reflects S&P's view that Saipem's 2016-2017
EBITDA and FFO could deviate materially from S&P's revised
forecast in the context of what it views as challenging market
conditions, with significant uncertainty about timing and
magnitude of any recovery.  This also takes into account the risk
of deterioration in backlog size or quality, as well as potential
downward revisions on costs related to third-party services
providers.

S&P could lower its rating on Saipem by one notch if credit
metrics deviate materially from S&P's base case, for instance if
FFO to debt remains materially lower than 20% for a year or more,
which could be triggered by S&P's more pessimistic view of
demand, pricing, backlog, or contract risk.  Negative free
operating cash flow (FOCF) would heighten the probability of a
downgrade.  S&P could also downgrade Saipem if we perceive
reduced headroom over the net debt-to-EBITDA maintenance covenant
of 3x, or if S&P has concerns about the company's ability to
refinance its bridge facility ahead of time.

S&P considers the likelihood of an outlook revision to stable
over the next 12 months as remote, given the challenging market
conditions.  S&P could revise its outlook to stable if FFO to
debt recovers to at least 25% or more sustainably while FOCF
shows a positive trend.  A positive rating action would be
supported by higher and improving oil and gas prices and a timely
refinancing of the bridge facility.



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


ENDO LUXEMBOURG: Moody's Lowers CFR to B1, Outlook Negative
-----------------------------------------------------------
Moody's Investors Service downgraded the ratings of Endo
Luxembourg Finance I Company S.a.r.l., Endo Finance Co. and Endo
Finance LLC, all subsidiaries of Endo International plc.  Moody's
downgraded the Corporate Family Rating and Probability of Default
Rating to B1 and B1-PD from Ba3 and Ba3-PD, respectively.  The
rating on the senior secured debt was downgraded to Ba2 from Ba1
and the rating on the senior unsecured debt was downgraded to B3
from B1.  Moody's also affirmed the SGL-2 Speculative Grade
Liquidity Rating.  The rating outlook is negative.

The downgrade of the Corporate Family Rating incorporates a
number of negative developments over the last several months
including generic competition on Voltaren Gel and a significant
increase in vaginal mesh litigation accruals.  More recently,
competition and pricing pressure has intensified in Endo's
generic business, particularly within legacy Qualitest opioid
products.  These developments have culminated in Endo
significantly reducing its expectations for revenue, earnings and
cash flow in 2016.  With earnings growth constrained by multiple
headwinds, and free cash flow constrained by litigation payments,
debt/EBITDA will likely be sustained around 5.0x with limited
ability for Endo to deleverage meaningfully over the next 12-18
months.

The negative outlook reflects uncertainty around when Endo will
be able to return to sustained earnings and revenue growth.
Further, the negative outlook reflects the risk of further
downward revisions to financial expectations given multiple
headwinds across Endo's branded and generic businesses.

Ratings downgraded:

Issuer: Endo Luxembourg Finance I Company S.a.r.l.

  Probability of Default Rating, to B1-PD from Ba3-PD
  Corporate Family Rating, to B1 from Ba3
  Senior Secured Bank Credit Facility, to Ba2 (LGD2) from Ba1
   (LGD2)

Issuer: Endo Finance Co.

  Senior Unsecured, to B3 (LGD 5) from B1 (LGD5)

Issuer: Endo Finance LLC

  Senior Unsecured, to B3 (LGD 5) from B1 (LGD5)

Rating Affirmed:

Issuer: Endo Luxembourg Finance I Company S.a.r.l.

  Speculative Grade Liquidity Rating at SGL-2
  The outlook is negative.

                         RATINGS RATIONALE

The B1 Corporate Family Rating reflects Endo's strong scale and
diversity by product, and its good balance between branded and
generic drugs.  The ratings are also supported by Endo's stated
leverage target of 3.0x-4.0x, and Moody's expectation that the
company will generate strong free cash flow beyond 2017, once
Endo has gotten past the bulk of its litigation-related payments.

The ratings are constrained by the high financial leverage
stemming from the company's aggressive M&A strategy.  Endo also
faces significant litigation expense over the next several years
and there is a risk that legal liabilities (related to mesh as
well as anti-trust and other investigations/lawsuits) continue to
climb.  Additionally, sector-wide headwinds, such as mounting
scrutiny on pharmaceutical price increases and declining
prescriptions of opioid medications will also constrain Endo's
ability to grow.

The SGL-2 rating signifies Moody's expectation of good liquidity
supported by adequate internal sources of cash to cover the
majority of litigation expense, capital requirements and required
debt repayments over the over the next 12-18 months.  Liquidity
is also supported by a $1 billion revolver, which Moody's expects
to remain largely undrawn, and solid forecasted cushion under
financial maintenance covenants.

Moody's could downgrade the ratings if the company experiences
further operating set-backs or pursues share repurchases or
acquisitions in lieu of repaying debt.  Specifically, if Endo is
expected to sustain debt to EBITDA above 5.0x, Moody's could
downgrade the ratings.  Any weakening of liquidity or a
significant increase in litigation accruals could also lead to a
downgrade.

While not expected over the near-term, Moody's could upgrade the
ratings if Endo moves past its mesh litigation and repays debt
such that debt/EBITDA is sustained around 4.0x.  Strong growth of
new product launches such that underlying revenue and earnings
growth appears sustainable could also support an upgrade.

Headquartered in Luxembourg, Endo Luxembourg Finance I Company
S.a.r.l. is a subsidiary of Endo International plc, which is
headquartered in Dublin, Ireland.  Endo is a specialty healthcare
company offering branded and generic pharmaceuticals.  Endo
expects to generate net revenues of around $4 billion in 2016.

The principal methodology used in these ratings was Global
Pharmaceutical Industry published in December 2012.


PINNACLE HOLDCO: S&P Lowers CCR to B-, Outlook Negative
-------------------------------------------------------
S&P Global Ratings said that it lowered its corporate credit
rating on Luxembourg-based Pinnacle Holdco S.a.r.l. to 'B-' from
'B'.  The outlook is negative.

S&P also lowered its issue-level ratings on the company's first-
lien credit facilities to 'B' from 'B+'.  The recovery ratings
remains '2', indicating S&P's expectation for substantial (70% to
90%; lower half of the range) recovery in the event of a payment
default.

Additionally, S&P lowered its issue-level rating on the company's
second lien term loan to 'CCC' from 'CCC+'.  The recovery rating
on the second-lien term loan remains '6', indicating S&P's
expectation for negligible (0% to 10%) recovery in the event of a
payment default.

"The downgrade reflects the substantial declines in capital
spending among Pinnacle's customer base due to continued weakness
in the O&G market, resulting in increased leverage and
deteriorating cash flow," said S&P Global Ratings credit analyst
Andrew Yee.

Specifically, adjusted leverage increased to 7.1x in fiscal 2015
from 6.5x in 2014.  Based on S&P's expectation that U.S. E&P
companies will cut capital spending by about 40% in 2016 after an
already significant 35% year-over-year spending reduction in
2015, S&P projects total revenues to be down in the high-single
digit area and margins to be pressured, such that leverage
increases to the 8x-area, with FOCF to be slightly positive.
FOCF was negative, at about $7 million, in fiscal 2015, compared
with a positive cash flow generation of $27 million in 2014.  S&P
expects FOCF to be slightly positive in 2016 because of cost
reduction efforts.

The ratings on Pinnacle reflect S&P's view of the company's
position in a narrow segment of the E&P market, business
performance related to cyclical oil O&G market, competition
against larger players in the E&P software industry,
deteriorating maintenance revenue base, and the company's highly
leveraged financial risk profile.  The company's suite of
integrated software applications that enables it to compete
effectively partially offset these factors.

Pinnacle is a provider of seismic imaging, interpretation, and
modeling solutions for the worldwide O&G E&P industry.  Its
customers use its products to accurately and cost effectively
locate, and optimally produce O&G.  Despite Pinnacle's expertise
in seismic imaging, interpretation, and modeling, S&P views the
company's presence as a software solutions provider in the E&P
lifecycle to be small.  It competes directly against Halliburton
and Schlumberger, among others, that are better capitalized and
offer a broader range of products and services.

As a result of the global glut in oil reserves and volatile
energy prices, E&P providers have scaled back exploratory
initiatives in pursuit of cash preservation, leading Pinnacle to
experience 15% decline in total revenues as of fiscal 2015.  S&P
expects production volumes to begin shrinking in the second half
of 2016 with steeper declines in 2017, possibly leading to higher
energy prices.

The negative outlook on Pinnacle reflects a weak O&G E&P macro
environment, S&P's view of continued declines in license sales
and renewals, and limited capacity for further cost cuts, which
could result in lower profitability and sustained weak FOCF.



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


E-MAC DE 2005-I: Moody's Raises Rating on Class C Notes to Ba3
--------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of five notes,
downgraded one note and affirmed four notes in E-MAC DE 2005-I
B.V., E-MAC DE 2006-I B.V. and E-MAC DE 2006-II B.V.  The ratings
of the Class A1, A2 and B notes of E-MAC DE 2007-I B.V. were
affirmed.

RATINGS RATIONALE

The upgrades reflect 1) deal deleveraging resulting in an
increase in credit enhancement for the affected tranches 2)
decreased key collateral assumptions, namely the portfolio
Expected Loss (EL) assumption due to better than expected
collateral performance.

The downgrade reflects the deterioration in credit enhancement
available.

Moody's affirmed the ratings of the notes that had sufficient
credit enhancement to maintain current rating on the affected
notes.

Revision of Key Collateral Assumptions:

As part of the rating action, Moody's reassessed its lifetime
loss expectation for the portfolio reflecting the collateral
performance to date.

Moody's decreased the expected loss assumption from 12%, 15%,
14.6% of original pool balance to 9.9%, 13.25%, 12.5% for E-MAC
DE 2005-I B.V., E-MAC DE 2006-I B.V. and E-MAC DE 2006-II B.V.
respectively.

The reduction in EL assumptions in the three E-MAC DE deals is
due to the improving performance.

Moody's maintained its EL assumptions in E-MAC DE 2007-I B.V. as
the performance of the securitized pool remains in line with
Moody's assumptions.

Moody's has also assessed loan-by-loan information as a part of
its detailed transaction review to determine the credit support
consistent with target rating levels and the volatility of future
losses.  Moody's has maintained the portfolio credit Milan
assumption at 28% for all four transactions.

Increase/Decrease in Available Credit Enhancement

The upgraded notes benefit from substantial increase in available
credit enhancement since the last rating action.

Sequential amortization led to the increase in the credit
enhancement available in the transactions.

For instance, the credit enhancement for Class B in E-MAC DE
2005-I B.V. affected by today's rating action increased from
23.6% to 32.9%, and the credit enhancement for Class C increased
from 12.9% to 17.4% since the last rating action in August 2015.

The credit enhancement for Class B in E-MAC DE 2006-I B.V.
affected by today's rating action increased from 8.2% to 11.4%
since the last rating action December 2013.

The credit enhancement for Class A2 in E-MAC DE 2006-II B.V.
affected by today's rating action increased from 14.9% to 17.8%,
and the credit enhancement for Class B increased from 8.4% to
8.9% since the last rating action in November 2014.

The increase in realized losses contributed to the build-up in
principal deficiency and deterioration in the level of available
credit enhancement for Class E in E-MAC DE 2006-II B.V.  As a
result, this tranche was downgraded as part of today's rating
action.

Counterparty Exposure

The rating actions took into consideration the notes' exposure to
relevant counterparties, such as servicer, account banks or swap
providers.

Moody's considered how the liquidity available in the
transactions and other mitigants support continuity of note
payments, in case of servicer default.  Moody's has used CR
Assessments in its analysis to measure the risk of default of the
servicer in relation to operational risks.

The rating of Class A and Class B in E-MAC DE 2005-I B.V., Class
A in E-MAC DE 2006-I B.V., Class A2 in E-MAC DE 2006-II B.V. and
Class A1 and A2 in E-MAC DE 2007-I B.V are constrained by
operational risk.  Operational risks is partially mitigated by
the presence of the back-up issuer administrator (Intertrust
Administrative Services B.V. (NR)) in E-MAC DE 2005-I B.V., E-MAC
DE 2006-II B.V. and E-MAC DE 2007-I B.V. where the senior ratings
are capped at A3 (sf).  There is no back-up issuer administrator
in E-MAC DE 2006-I B.V. whose senior ratings are capped at
Baa1 (sf).

Collections are made via direct debit into the issuer account
bank held at Deutsche Bank AG (A2, on review for downgrade).

Principal Methodology

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

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

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

Factors or circumstances that could lead to an upgrade of the
ratings include (1) performance of the underlying collateral that
is better than Moody's expected, (2) deleveraging of the capital
structure and (3) improvements in the credit quality of the
transaction counterparties.

Factors or circumstances that could lead to a downgrade of the
ratings include (1) performance of the underlying collateral that
is worse than Moody's expected, (2) deterioration in the notes'
available credit enhancement and (3) deterioration in the credit
quality of the transaction counterparties.

LIST OF AFFECTED RATINGS:

Issuer: E-MAC DE 2005-I B.V.

  EUR259.2 mil. A Notes, Affirmed A3 (sf); previously on Aug. 21,
   2015, Upgraded to A3 (sf)
  EUR18.6 mil. B Notes, Upgraded to A3 (sf); previously on
   Aug. 21, 2015, Upgraded to Baa1 (sf)
  EUR9.9 mil. C Notes, Upgraded to Ba3 (sf); previously on
   Aug. 21, 2015, Downgraded to Caa3 (sf)
  EUR9.3 mil. D Notes, Affirmed Caa3 (sf); previously on Aug. 21,
   2015, Affirmed Caa3 (sf)

Issuer: E-MAC DE 2006-I B.V.

  EUR437 mil. A Notes, Affirmed Baa1 (sf); previously on Dec. 4,
   2013, Affirmed Baa1 (sf)
  EUR27 mil. B Notes, Upgraded to B1 (sf); previously on Dec. 4,
   2013, Downgraded to Caa1 (sf)
  EUR17.5 mil. C Notes, Affirmed Caa3 (sf); previously on Dec. 4,
   2013, Downgraded to Caa3 (sf)

Issuer: E-MAC DE 2006-II B.V.
  EUR465.7 mil. A2 Notes, Upgraded to A3 (sf); previously on
   Nov. 7, 2014, Downgraded to Baa3 (sf)
  EUR35 mil. B Notes, Upgraded to B2 (sf); previously on Nov. 7,
   2014, Downgraded to Caa3 (sf)
  EUR9.8 mil. E Notes, Downgraded to C (sf); previously on
    Dec. 4, 2013, Affirmed Ca (sf)

Issuer: E-MAC DE 2007-I B.V.

  EUR19.5 mil. A1 Notes, Affirmed A3 (sf); previously on Nov. 7,
   2014, Affirmed A3 (sf)
  EUR443.3 mil. A2 Notes, Affirmed A3 (sf); previously on Nov. 7,
   2014, Affirmed A3 (sf)
  EUR39.1 mil. B Notes, Affirmed Caa1 (sf); previously on Nov. 7,
   2014, Downgraded to Caa1 (sf)



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


SILK BIDCO: Moody's Affirms B2 CFR & Changes Outlook to Stable
--------------------------------------------------------------
Moody's Investors Service has affirmed the B2 corporate family
rating, B2-PD probability of default rating, and the B2 senior
secured rating of Silk Bidco AS (Hurtigruten), the full owner of
Norwegian cruise operator Hurtigruten ASA.  While the ratings
have been affirmed, the outlook has been changed to stable from
positive.

"The change in outlook to stable reflects the higher credit risk
and weaker liquidity that Hurtigruten's recent capex spending
announcement entails," says Guillaume Leglise, Moody's lead
analyst for Hurtigruten.

"While Hurtigruten's leverage will be slightly higher than we
initially expected, we still recognise the company's good
deleveraging prospects, which reflects its increased capacities
and higher occupancy rates, the solid demand for leisure cruises,
and the low oil price environment", adds Mr. Leglise.

                         RATINGS RATIONALE

The change of outlook to stable from positive primarily reflects
Hurtigruten's higher than previously anticipated capital
expenditures.  On April 31, 2016, the company announced a new
build programme, which will initially involve ordering two new
ships, and potentially two additional ones over time, with the
first two ships (1) being delivered in 2018 and 2019
respectively; (2) costing between EUR130 and EUR150 million; and
(3) potentially being at least 80% debt funded.  While the
company has not finalised the financing at this stage, we expect
that leverage will remain slightly higher than previously
anticipated in the coming years.

That being said, proforma for the ship deliveries, Hurtigruten
still presents a good deleveraging profile, aiming towards 5.0x
(gross debt to EBITDA as adjusted by Moody's) by 2018, but this
may take a longer time period than initially expected.
Hurtigruten's initial B2 CFR with a positive outlook assigned in
January 2015 reflected the company's deleveraging prospects of
achieving leverage comfortably below 5.5x by 2016, as well as
expectations of positive free cash flows.

Hurtigruten's new investment programme is likely to translate
into negative free cash flow over the medium term.  Hurtigruten's
free cash flow generation turned negative in 2015 owing to (1)
the refurbishment programme initiated last year on four existing
ships; and (2) the purchase and refurbishment of a new ship (MS
Spitsbergen) in June 2015.

However, Moody's notes positively that this development capex was
financed in cash, owing to the company's solid operating
performance in 2015.  The rating agency expects that
Hurtigruten's existing operations will continue to display solid
profitability and positive operating cash flow generation in the
next 12 to 18 months on the back of solid advance bookings and
low bunker prices.

The company's liquidity profile is also weaker than Moody's
initially expected due to the recent expansion capex and the
expected new investments.  Although still adequate, Hurtigruten's
liquidity profile presents less room for manoeuvre, with only
NOK274 million (EUR28 million) of cash and cash equivalents for
the restricted group, and 40% drawn under the covenanted EUR65
million super senior revolving credit facility as at 31 December
2015, reflecting the seasonal dry-docking expenditures and
partial payments of planned refurbishments.

Nevertheless, Moody's recognises that through these investments,
Hurtigruten will increase its capacity in the expedition segment.
Demand for expedition cruises in polar waters and the Antarctic
is trending upward, supported by the growing global cruise market
and the stronger appetite for "adventure travels".  Moody's notes
positively that expedition activities are expected to generate
higher margins than the core Norwegian cruises, mitigating the
impact of the new ship financing on the company's leverage.  In
addition, expedition cruises are generally booked well in advance
(around 12 months in advance) and this will allow the company to
open bookings as soon as Q4-2016, supporting earnings and
deleveraging for 2017-18.

As such, Moody's believes that the company's strategic decision
to expand in the expedition segment is credit positive as it will
create earnings diversification, away from the core Norwegian
coast cruises and away from government contractual revenues,
which respectively represented around 65% and 18.5% of the group
revenues in FY2015.  Also, Hurtigruten will gain operating
flexibility as the new ships are expected to be equipped with the
adequate environmental technologies required for both extreme
polar water expeditions and Norwegian coastal routes.  This
flexibility will help alleviate the high degree of seasonality of
Hurtigruten's activities, thanks to cruise expeditions in the
southern hemisphere during the low season of core Norwegian
coastal activities (Q1 & Q4).

Hurtigruten's B2 CFR continues to be supported by the strong
positioning of the company in the Norwegian coastal cruise
market. Hurtigruten displayed solid top line growth in 2015 on
the back of strong demand for Norwegian coast cruises and
expedition travels, boosted notably by the weak Norwegian kroner
against major currencies (EUR and GBP).  Moody's expects this
trend to continue going forward as the company increases its
capacity, primarily in the growing expedition segment.  The low
bunker fuel price environment should also continue to sustain
margins for Hurtigruten.

Regarding the current investigation from the European Free Trade
Association Surveillance Authority, Moody's notes that there is
no new development since the opening of the case in December
2015. The investigation focuses on Hurtigruten's public service
compensation received for the period 2012-19.  At this stage it
is difficult to predict the timing and legal outcome of the
investigation, or the size of any possible monetary penalties.

WHAT COULD CHANGE THE RATINGS DOWN/UP

Moody's could upgrade the ratings if Hurtigruten (1) continues to
improve its profitability; (2) displays positive free cash flow
generation, and (3) improves its liquidity headroom.
Quantitatively, stronger credit metrics such as adjusted (gross)
debt/EBITDA comfortably below 5.5x on a sustainable basis could
trigger an upgrade.

Conversely, Moody's could downgrade the ratings if Hurtigruten's
operating performance deteriorates or if it incurs higher-than-
expected capital expenditures.  Quantitatively, an adjusted
(gross) debt/EBITDA ratio trending towards 6.5x could trigger a
downgrade.  A weakening in the company's liquidity profile could
also exert downward pressure on the rating.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014.

Headquartered in Tromso, Norway, Hurtigruten is a cruise ship
operator that focuses mainly on coastal cruises in Norway but
also offers expeditions, land-based excursions and activities in
the Arctic Circle, Greenland and Antarctica.  In addition, the
company provides local transportation services with daily calls
in 34 ports in Norway through an exclusive contract with the
Norwegian government until 2019.  The company operates a fleet of
13 ships, which are characterised by their medium size (around
425 bed capacity on average) and their ability to carry
passengers, cargo and mail, and to run cruise operations.  For
the last 12 months to Dec. 31, 2015, the company generated
revenues and EBITDA (as adjusted by the company) of NOK4.1
billion (EUR455 million) and NOK923 million (EUR103 million)
respectively.  In 2015, 84% of the company's revenues derived
from the Norwegian Coast operations (including local
transportation services).  More than 90% of the company's
passengers were sourced from Europe.

Silk Bidco AS is a holding company which owns 100% of Hurtigruten
and is itself ultimately around 81% owned by the private equity
firm TDR Capital.  The remaining part is mainly owned by two
Norwegian businessmen, Petter Stordalen and Trygve Hegnar who are
historical shareholders of Hurtigruten.

LIST OF AFFECTED RATINGS

Affirmations:

Issuer: Silk Bidco AS
  Probability of Default Rating, Affirmed B2-PD
  Corporate Family Rating, Affirmed B2
  Senior Secured Regular Bond/Debenture, Affirmed B2

Outlook Actions:

Issuer: Silk Bidco AS
  Outlook, Changed To Stable From Positive



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


BCS HOLDING: S&P Affirms B-/C Ratings, Outlook Stable
-----------------------------------------------------
S&P Global Ratings revised its outlook on Russia-based securities
firm BCS Holding International Ltd. (BCS) to stable from negative
and affirmed its 'B-/C' long- and short-term counterparty credit
ratings on the company.

S&P also revised the outlook on BCS' core subsidiary
BrokerCreditService (Cyprus) Ltd. (BCS Cyprus) to stable from
negative and affirmed S&P's 'B/B' ratings.

"We believe that BCS Group, which includes BCS and BCS Cyprus,
demonstrated substantial resilience to the challenging economic
conditions in Russia.  In particular, the group managed to
demonstrate substantial improvement in profitability with returns
on assets increasing to about 4% in 2015 from 1.7% on average
over 2011-2014.  This increase was driven by improvement of the
group's franchise, both in retail and corporate segments, and by
a build-up of the international franchise.  In particular, we
note that the group became one of the major beneficiaries of the
new tax-exempt individual investment accounts introduced in 2015.
We also believe that the group is benefiting from reduced
competition in the international-to-Russia segment and has built
up the necessary infrastructure outside Russia to diversify its
earnings internationally.  We note that the group's performance
was supported by inflows of client funds in a high-interest-rate
environment and by gains on proprietary position," S&P said.

"In our view, BCS Group maintained a cautious approach to risk
management in the second half of 2015 that translated into an
improvement in its risk-adjusted capital (RAC) ratio from about
8% at mid-2015 to an estimated 10% at year-end 2015.  We believe
that, going forward, the group will maintain it RAC ratio at
about 10.5%-11.0% on the back of reduced market volatility and a
limited appetite for proprietary operations.  Our view on the
group's capital and earnings also reflects our opinion that the
return on our risk-weighted assets will remain in the 75-100
basis point (bps) range during the next 12-18 months compared
with 40-60 bps in previous years, although it is likely to remain
volatile," S&P noted.

The stable outlooks on BCS and BCS Cyprus reflect S&P's opinion
that BCS Group will be able to withstand potential deterioration
of operating conditions in Russia in the next 12-18 months while
maintaining sufficient capitalization and liquidity.

S&P may take a negative rating action on BCS and BCS Cyprus if
the group's capitalization deteriorates, with S&P's adjusted
capital ratio for the group declining below 7%.  This may come
from increased proprietary risk appetite or from an increase of
risks in Russia or in other countries.  A disruption of the
market confidence in the group may also result in a negative
rating action.

In addition, S&P could take a negative rating action on BCS
Cyprus if S&P sees its importance for the group diminish.
However, that scenario is remote, in S&P's view.

A positive rating action on BCS and BCS Cyprus is most likely to
be contingent on improvement of the operating conditions in
Russia, including introduction of a more robust and credible
regulatory regime for securities firms in the country.  S&P
could, however, also raise the ratings if the major strengthening
in profitability observed in 2015 is sustained and if S&P
believes the RAC capital ratio will exceed 10% on a sustained
basis.


CROSSINVESTBANK JSCB: Bank of Russia Provides Update on Probe
-------------------------------------------------------------
The provisional administration of JSCB CROSSINVESTBANK appointed
by Bank of Russia Order No. OD-1200, dated April 11, 2016,
following the revocation of its banking license has established
the fact of ad hoc records of liabilities to depositors while
examining the bank's financial standing.

The management of the bank abused their legal powers and
organized the receipt of deposits from the clients with no book
records of liabilities to the bank's clients.  It needs to be
mentioned that as of the date the banking license of JSCB
CROSSINVESTBANK was revoked the volume of liabilities to the
depositors illegally attracted reached 3.5 billion rubles which
is more than twice higher than the volume of deposits officially
documented in the bank's records.

Consequently, the management of the bank falsified the data on
the actual household liabilities of JSCB CROSSINVESTBANK
submitted to the Bank of Russia.

Besides, the analysis of the bank's electronic database launched
by the provisional administration revealed that on the eve of the
revocation of the license some unidentified individuals performed
actions which resulted in the destruction of the data covering
deposit operations.

The Bank of Russia has submitted the information on the financial
transactions bearing the evidence of criminal offences conducted
by the former management and owners of JSCB CROSSINVESTBANK to
the Prosecutor General's Office of the Russian Federation, the
Russian Ministry of Internal Affairs and the Investigative
Committee of the Russian Federation for consideration and
procedural decision making.



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


IM TARJETAS: DBRS Confirms C(sf) Rating on Class B Notes
--------------------------------------------------------
DBRS Ratings Limited has confirmed its ratings on the following
notes (the Notes) issued by IM Tarjetas 1, FTA (the Issuer):

-- EUR840,000,000 Class A Notes at A (sf)
-- EUR160,000,000 Class B Notes at C (sf)

The confirmations of the ratings on the Notes are based upon the
following analytical considerations:

-- Portfolio performance, in terms of delinquencies and
    defaults, as of the April 2016 payment date;
-- No early amortization events have occurred;
-- The capital structure has not changed; and
-- The amendment signed on 3 May 2016, removing the Servicer
    Guarantee and increasing the Commingling Reserve target
    amount, is not expected to have an impact on the previous
    points.

The rating of the Class A Notes addresses the timely payment of
interest and the ultimate payment of principal on the Maturity
Date. The Class B Notes are in the first loss position and, as
such, are highly likely to default. Given the characteristics of
the Class B Notes as defined in the transaction documents, the
default most likely would only be recognized at the maturity or
early termination of the transaction.

The Issuer is a Spanish securitisation of credit card receivables
initially originated and serviced by Citibank Espana S.A. The
transaction closed in November 2013 and in September 2014, after
Bancopopular-e, a joint venture currently detained by Banco
Popular Espanol, S.A. and VĂ‘rde Partners, acquired Citibank
Espana's retail business, the following amendments were made to
the transaction:

-- Bancopopular-e replaced Citibank Espana S.A. as Originator
    and Servicer;

-- Banco Santander S.A. substituted Citibank International, PLC
    (Spanish Branch) as Treasury Account Bank and Paying Agent,
    and Citibank Espana S.A. as Reinvestment Account Bank; and

-- The guarantee provided by Citibank N.A. on the Servicer
    obligations was replaced by the Servicer Guarantee provided
    by Banco Popular Espanol, S.A.

On October 30, 2015, a new amendment was signed, extending the
accumulation period and the legal maturity of the transaction for
more 18 months.

The transaction benefited from a Guarantee Agreement, according
to which Banco Popular Espanol, S.A. guaranteed the performance
of the obligations of Bancopopular-e, S.A. with regards to the
Servicer Agreement.

Under the amendment signed on May 3, 2016, the Guarantee
Agreement has been terminated. Additionally:

-- The Commingling Reserve Purpose has been modified, in order
    to cover any shortfalls due to the breach of any of
    Servicer's obligations and

-- The Commingling Reserve target amount has increased to
    EUR17.650 million from EUR8.825 million.

The transaction also benefits from a Dilution Reserve, available
to protect against possible losses derived from Credit Card
Dilutions, such as merchandise disputes, servicer rebates and
fraud. The Commingling Reserve and the Dilution Reserve are
currently at the target level of EUR8.825 million (target level
before the amendment) and EUR10.625 million, respectively.

Delinquencies have been stable since closing. As of April 2016,
one- to 30-day delinquencies and 30- to 60-day delinquencies were
at 2.36% and 1.36% of the collateral balance, respectively, while
60- to 90-day delinquencies and more than 90-day delinquencies
were at 1.04% and 1.83%, respectively.

The annualized portfolio yield is currently 23.37%, and the
Monthly Payment Rate (MPR) has been running between 12.47% and
15.43% over the life of the transaction and averaged 14.10% over
the last 12 months. The annualized charge-off rate has averaged
3.67% since closing (3.76% over the last 12 months) and currently
stands at 3.88%.

The Class A Notes are supported by subordination of the Class B
Notes and excess spread, while the Class B Notes are supported by
excess spread only. Credit enhancements for the Class A and Class
B Notes have been stable at 16% and 0%, respectively, since the
initial rating in November 2012.

Banco Santander S.A. is the Account Bank for this transaction.
The DBRS Long-Term Critical Obligations Rating of Banco Santander
S.A. at A (high) complies with the Minimum Institution Rating
given the rating assigned to the Notes, as described in DBRS's
"Legal Criteria for European Structured Finance Transactions"
methodology.



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


VOLVO CAR: S&P Assigns BB Long-Term CCR, Outlook Positive
---------------------------------------------------------
S&P Global Ratings said that it assigned its 'BB' long-term
corporate credit rating to automotive manufacturer Volvo Car AB.
The rating outlook is positive.

At the same time, S&P assigned its 'BB' issue rating and '3'
recovery rating to Volvo's recently announced, proposed benchmark
senior unsecured notes due in 2021, subject to market conditions.
The '3' recovery rating indicates S&P's expectation of meaningful
recovery (50%-70%, in the upper half of the range) in the event
of a payment default.

The corporate credit ratings on Volvo reflect S&P's view that the
company's business risk profile is supported by a well-
established market position as a mid-sized car manufacturer,
focused on Europe, China, and the U.S., helped by a track record
of safety, reliability, innovation, and technological expertise.
In 2015, Volvo sold approximately 500,000 cars, in three body
types within the SUV/cross-over, sedan, and estate segments,
across three family ranges: the '40', '60', and '90'.

The company is also undertaking a multi-year program of
significant investment, product development, and enhancement.
This is intended to fully renew and extend the model range, lead
to significantly higher sales volumes (to 800,000 over the medium
term), and to reposition the Volvo car brand in the premium
segment.  The benefits of this strategy are starting to be seen,
with volume growth of 8% in 2015 and 12% during the four months
to April 30, 2016, driven by higher SUV sales -- notably the new
XC90, which was successfully launched in 2015.  This was partly
offset by lower volumes in the sedan and estate segments, which
will be supported by the startup of production later this year of
replacement models for the S90 sedan and V90 estate.
Profitability is also strengthening, as seen in reported EBIT
margins of 4% in 2015 and 7.5% during the three months to
March 31, 2016.

"If fully successful, we expect Volvo's strategy will enable the
company to benefit from stronger market demand, higher pricing,
and wider profit margins, which will improve its competitive
position.  We also envisage that the transition to more flexible
and cost-efficient manufacturing platforms, which is currently
underway, will support profitability and product quality.
Investments are also being made in electrification, autonomous
driving, and connectivity.  The company has an existing dealer
network and its production facilities are running at high
capacity.  We see the 2015 consolidation of joint-venture (JV)
entities in China as supportive to its business activities there,
including its close relationship with its parent company, which
is the other JV partner," S&P said.

These strengths are partly offset by Volvo's limited scale and
scope by global standards, and a degree of execution risk related
to significant capacity expansion -- notably a new plant being
built in the U.S., which is due to start production in 2018, and
volume growth.  Volvo also has a limited track-record of
improving profitability, which has been supported by higher
pricing and volumes on new models, as seen in 2015 and the first
quarter of 2016.  S&P anticipates that the group will continue to
face highly competitive market conditions from long-established
premium car peers (notably BMW, Mercedes, Audi, Land Rover, and
Jaguar), which are also investing heavily in new and upgraded
models.  Volvo could be challenged to fully reposition the brand,
as it has historically been seen more as a volume producer,
albeit of higher quality than certain peers.  A slower pace of
new car demand in China is a further risk factor.  Cyclical
demand for premium cars, sizable research and development
expenses, and the need for automakers to meet stringent
environmental standards in respect of carbon dioxide and nitrogen
oxide emissions, are also constraining factors.  As with peers,
the company has invested in this area to meet the required
standards.

S&P considers Volvo's business risk profile to be more weakly
positioned than peers.  This is because Volvo is:

   -- Still in the early stages of replacing its model line-up
      and establishing itself as a premium car manufacturer;

   -- Has a limited track record of delivering better margins;

   -- Is relying upon the successful development and roll-out of
      new car models; and

   -- Depends on a limited number of car models.

These factors lead S&P to include a one-notch negative comparable
rating analysis modifier to S&P's initial analytical assessment
(anchor) of 'bb+', to derive the final corporate credit rating of
'BB'.

S&P's assessment of Volvo's financial risk profile is supported
by S&P's expectation of continued low adjusted debt levels and
strong leverage metrics.  This is underpinned by continued
healthy volume growth in 2016 and 2017, mainly driven by SUV
models -- notably the XC90 -- as well as the S90 sedan and V90
estate.  S&P also expects EBITDA profit margins to further
improve, helped by the stronger sales mix and a rising share of
production on modular platforms. Constraining factors are ongoing
levels of high capital expenditures (capex), including
investments in new models and capacity additions, which may lead
to broadly neutral free operating cash flow (FOCF) in 2016
becoming positive in 2017.

Although leverage metrics are strong for the rating, which S&P
expects to continue, we factor in the risk of potential high
volatility in cash flow and leverage metrics.  This is because
S&P views Volvo as being more exposed than peers to the risk that
its investments in new models and expansion of production could
experience operational delays or challenges, which make S&P's
forecasts and leverage metrics more vulnerable to execution
risks.

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

   -- Global auto volumes will grow by 2%-3% in 2016 and 2017, in
      line with global GDP growth of 3.0%-3.5%, encompassing
      continued regional differences.  S&P sees auto volume
      growth in 2016 in the U.S. of around 3%, 4% in Western
      Europe, and around 5%-6% in China.  Moderate volume growth
      for Volvo to around 530,000 in 2016, and 545,000 in 2017,
      driven by volumes from new models, notably the XC90, S90,
      and V90.

   -- EBITDA margins to improve to around 11% on a reported
      basis, helped by positive pricing and volume mix.

   -- Investments in working capital, as volumes grow.  Capex of
      Swedish krona (SEK) 14 billion-SEK15 billion per year in
      2016 and 2017.

   -- Broadly neutral FOCF in 2016, becoming positive in 2017.
      No dividends during 2016 and 2017.

   -- No material acquisitions, aside from an increased stake in
      VolvoFinans Bank AB already announced, due to be closed in
      the second quarter of 2016.

Based on these assumptions, S&P expects these credit measures for
2016 and 2017:

   -- Funds from operations (FFO) to debt of above 100%.
   -- Adjusted debt to EBITDA of below 0.5x.
   -- S&P regards metrics of above 60% and below 1.5x,
      respectively, as being in line with the ratings.  This
      indicates a significant degree of headroom compared with
      S&P's forecasts, but is intended to capture execution and
      volatility risks.

As of Dec. 31, 2015, S&P Global Ratings-adjusted debt was very
low at only SEK530 million.  To the reported gross debt of
SEK21.4 billion, S&P adds SEK3.5 billion for operating leases,
SEK3.9 billion for pensions, and deduct SEK28.3 billion as
surplus cash (after deducting SEK825 million of cash balances,
which S&P treats as not immediately available). On this basis,
leverage ratios were not meaningful.  S&P also lowers reported
EBITDA by capitalized development costs, which in 2015 were
SEK4.5 billion.

S&P views Volvo as a highly strategic entity of Geely Holding,
which has a group credit profile (GCP) of 'bb+'.  Geely Holding
owns 88% of Volvo, with the balance of shares owned by Chinese
local government entities.  S&P's assessment implies that Volvo
is virtually integral to the group's current identity and future
strategy, and the group would support Volvo under almost all
foreseeable circumstances.  On this basis, the long-term credit
ratings on Volvo are in line with the company's own stand-alone
credit profile of 'bb' and are not constrained by the GCP on
Geely Holding.

The positive outlook reflects S&P's view that it could raise the
long-term rating on Volvo by one notch to 'BB+' within the next
year.  This could occur if the company continues to successfully
launch new models according to its business plan and strengthen
profitability, while maintaining low levels of adjusted debt, and
avoiding execution risks.

S&P may upgrade Volvo if S&P assess that the company is
strengthening its competitive position, demonstrating a
consistent track-record of stronger profitability, while avoiding
execution problems.  For this rating action, Volvo would also
need to maintain leverage metrics of FFO to adjusted debt above
60% and adjusted debt to EBITDA below 1.5x.

An additional factor would be if S&P reassessed the group status
of Volvo to core (assuming that the GCP on Geely Holding was
'bb+' or higher).

S&P could revise the outlook to stable if Volvo was not able to
sustain its higher profitability, or experienced material delays
in new model launches or other operational setbacks, such as
plant construction in the U.S. or weaker-than-anticipated
operations in China.  Other factors would be a return to negative
FOCF, leverage metrics weaker than FFO-to-adjusted debt of 60%,
or adjusted debt to EBITDA of 1.5x, all on a sustained basis.



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


TURKEY: S&P Revises Outlook to Stable & Affirms BB+/B Ratings
-------------------------------------------------------------
S&P Global Ratings revised its outlook on the Republic of Turkey
to stable from negative.  At the same time S&P affirmed its
unsolicited 'BB+/B' foreign currency long- and short-term
sovereign credit ratings and 'BBB-/A-3' local currency long- and
short-term sovereign credit ratings on Turkey.

S&P also affirmed its unsolicited 'trAAA/trA-1' long- and short-
term Turkey national scale ratings.

RATIONALE

The outlook revision reflects the demonstrated resilience of the
Turkish economy and S&P's view that risks to the financing of
Turkey's still-large current account deficit and the roll-over of
its external debt have moderated.

The Turkish economy has faced several challenges -- escalating
domestic violence following the ending of the peace process with
Kurdish militants, two general elections, a sharp depreciation of
the lira amid sustained portfolio outflows, heightened
instability along its southeastern border, and weaker demand from
major export markets.  Despite these challenges, during 2015 the
economy expanded by 4% versus S&P's original expectation of 3.1%
at the time of its Nov.6, 2015, affirmation.  Lower oil prices
and net gold exports allowed a narrowing of the current account
deficit, despite the weakness in demand from oil-exporting
markets and a fall in tourism numbers.  S&P expects economic
growth to average about 3% over our forecast horizon of 2016-
2019.  That is not to say, however, that risks do not persist.
The tourism season is expected to underperform that of past
years; the government's deficit position is projected to widen to
support the economy; rising oil prices could push up the cost of
imports; domestic political volatility is likely to persist; and
the implementation of reforms may be sidetracked to make way for
constitutional changes.  But in S&P's base case, it do not expect
that these factors will have a significant negative effect on
external investors' willingness to fund the Turkish economy.

"Strong consumer demand in 2015 was supported by lower oil
prices; purchases, particularly of automobiles, some of which
were brought forward in order to avoid the price impact of
further exchange rate declines; and the additional spending of
the large migrant population (estimated at around 3 million, 4%
of the population). Consumer credit growth decelerated, owing to
macroprudential measures taken to curb excessive household
borrowing, but credit card lending recovered in the second half
of the year.  The negative effect of lira depreciation (24%
against the U.S. dollar and about 5%-7% on a real effective
exchange rate basis) on households' purchasing power was
partially mitigated, as they continue to hold more foreign
currency assets than liabilities, given that foreign currency
lending to households is prohibited. The current account deficit
narrowed to 4.5% of GDP in 2015 from 5.5% in 2014, largely due to
the low price of energy imports and the improvement in the
volatile net nonmonetary gold exports position; excluding these
effects, the current account deficit widened.  The general
government deficit was unchanged at a modest 1.2% of GDP, with an
increase in tax revenues compensating for stronger-than-budgeted
spending," S&P said.

S&P projects real GDP will grow by 3.4% in 2016, slowing compared
with the 4% growth in 2015, despite the government's 30% increase
in the minimum wage.  In S&P's view, the government's largesse in
relation to its pre-election promise will be more than offset by
the slowdown in credit growth, moribund private investment,
volatile external demand, and a sharp decline in the tourism
sector as a result of the recent terrorist attacks and Russia's
ban on the sale of package holidays to Turkey.

S&P expects heightened political uncertainty in 2015 to spill
over into 2016, and this could also dampen economic growth
prospects this year.  The implementation of the ambitious medium-
term economic program for 2016-2018 is likely to stall in 2016,
in S&P's view, due to the president's focus being directed more
toward bringing about constitutional change with the end goal of
achieving an executive presidency.  The reform agenda targets
increasing domestic savings, reducing dependence on imports,
improving educational standards, and increasing labor market
flexibility, among other things.  The calling of an extraordinary
Justice and Development Party (AKP) congress, expected to take
place on May 22, is likely to result in Prime Minister Ahmet
Davutoglu being replaced, as he is not expected to stand for
re-election.  A referendum, or parliamentary elections, could be
called again in 2016 in order for the AKP party to win enough
seats to enable it to change the constitution.

Under S&P's base case, it does not expect eventual constitutional
reform to result in significant policy changes.  In particular,
S&P does not expect an intensification of intervention in the
independence of Turkish institutions, including the central bank,
nor the abrogation of any private sector rights such as the
nationalization of private sector banks.

As well as focusing on ways to raise domestic savings --
including plans to fund the private pension and severance pay
systems -- the government's reform plan also aims to deepen
domestic capital markets, and cut the bill for imported energy
(an important contributor to the current account deficit), while
increasing the currently low participation of women in the labor
market and reducing the size of Turkey's substantial informal
economy.  If the pace of implementation accelerates, it could
help Turkey shift away from its current economic growth model,
which still depends on net debt financing from abroad and
therefore to a large extent on monetary policy settings of major
central banks.  In the absence of such reforms, though, S&P
believes Turkey's external position will remain a weakness for
the rating.

Gross international reserves of the central bank amounted to
US$111 billion in 2015.  However, foreign currency and gold
reserve requirements made up about 70% of this total in 2015 (up
from 37% in 2011).  Excluding these reserve requirements S&P
estimates usable reserves at about US$30 billion in 2015, an
amount roughly equal to the 2015 current account deficit,
providing only a limited buffer against any further exchange-rate
pressure.  S&P estimates Turkey's gross external financing needs
will average close to 180% of current account receipts and usable
reserves in 2016-2019.

Between 2008 and 2015, net banking sector external debt increased
to about US$150 billion (21% of GDP) from less than US$8 billion
(1% of GDP).  External leverage for Turkey's banking sector
remains relatively high.  Nevertheless, increases to reserve
requirements for short-term borrowing resulted in a sharp fall in
banks' reported short-term debt in 2015, down to about 40% of
banks' total external debt from about 55% in 2014.  At the same
time S&P sees a general trend for Turkish banks to increase the
maturities of their longer-term debt.  Although S&P views
Turkey's banking system as generally well capitalized and
supervised, the size of state-owned banks (representing about
one-third of total banking system assets), and their involvement
in quasi-fiscal operations, means that domestic banks' asset
quality may not be homogenous throughout the system.
Furthermore, although the banking sector is fully hedged, its
foreign currency funding has risen in tandem with declining
profitability.  This could represent a risk for banks if their
hedges do not hold, due to counterparty risk, or because of the
second-round effects of the large open foreign exchange position
in the corporate sector (at about 25% of GDP) on banks' asset
quality.  S&P also remains concerned about the decrease in
Turkish exports and tourist arrivals, as both of these will put
pressure on borrowers in these industries.

The uncertain global economic environment, particularly a
possible reversal in historically low U.S. interest rates could,
in S&P's opinion, raise real interest rates in Turkey.  This
could exacerbate any slowdown and in turn reduce the risk
appetite of nonresident investors in Turkey's government debt and
equity markets, which have been important destinations for
external financing inflows over the past several years.  Further
increases in the prices of oil and other energy products could
also exacerbate any slowdown, given Turkey's large net energy
import bill.

Mitigating its external vulnerabilities to some degree, Turkey
has deep local currency capital markets that have benefited the
sovereign's access to and cost of financing.  Two-thirds of
government debt is funded in local currency and at fixed rates.
Furthermore, S&P views the treasury's policy of meeting net
public-sector financing needs by issuing in local currency at
longer maturities as a positive rating factor.

Central government expenditures exceeded budgetary expectations
in 2015 as big ticket current spending items, such as personnel
expenditure, current transfers, and purchases of goods and
services all accelerated by more than 10%.  Meanwhile, capital
spending and transfers also accelerated.  However, the central
government balance narrowed marginally to 1.2% of GDP in 2015,
from 1.3% in 2014, as budget revenues increased by 14%, largely
due to a 16% increase in tax revenues, and non-tax revenues
increased by 2%.

"In our base-case scenario, we anticipate that the government
will continue running modest deficits, averaging 2.4% of GDP in
2016-2019.  This widening in the deficit from 1.2% in 2015
results from the implementation of election pledges alongside our
lower economic growth forecasts when compared with those in the
government's medium-term plan for 2016-2018.  We expect the
government's debt stock to remain largely flat in the absence of
external shocks that could weigh further on growth prospects, the
exchange rate, and on budgetary performance.  Under our fiscal
assumptions, we also incorporate our view that the contingent
liabilities of the Turkish general government are limited.
Specifically, we consider that Turkey's domestic banks -- the
intermediators of the country's external deficit -- will remain
well regulated and amply capitalized.  Nevertheless, we expect
asset quality to gradually deteriorate, evident from the 9%
increase in domestic nonperforming loans (NPLs) in the system
during the first 16 weeks of 2016 versus 2% credit growth.  The
stock of outstanding NPLs is at about 3.3% as of the end of April
2016.  We expect a sharp decline in tourism receipts in 2016,
following the terrorist attacks in 2015 and 2016, to result in
higher, but manageable, NPLs for the banks.  Anecdotally, we
understand that systemwide NPLs could be about two percentage
points higher, when including large Turkish banks' sales of NPLs
and large restructurings that are classified under Group II
performing loans.  We understand that the latter is attributable
to clients who can't pay owing to the 2015 lira depreciation and
who have requested an extension of the original maturity," S&P
said.

S&P foresees the general government's interest burden at about 5%
of revenues and net general government debt at about 27% of GDP
over 2016-2019.  Since 2009, the weighted average maturity of
Turkish government domestic borrowing has more than doubled to
six years.  One risk to the central government's funding profile
remains the high stock of domestic debt held by nonresidents.  It
stood at 17% of total domestic debt in 2015.  In the event of
external instability, this stock could become an outflow, putting
pressure on balance-of-payments financing.

"Turkey's low domestic savings rate results in a low level of
investment and high interest rates to attract capital flows to
Turkey, some potentially flighty.  This is also partly due to a
lack of confidence in the Turkish lira.  More credible monetary
policy could reduce inflation expectations and result in a higher
level of savings.  Overall, we think the central bank's
challenged credibility has diminished the status of the Turkish
lira as a reliable transactional currency, making it more
vulnerable to shifts in investors' portfolios of cross-border
holdings.  We think this poses greater risks to the refinancing
of Turkey's considerable stock of external debt.  Although we
consider that Turkey's relatively deep capital markets benefit
its monetary flexibility, we view the complex monetary
Framework -- with multiple interest rates and an unusually broad
interest rate corridor -- as relatively ineffective, given the
high pass-through of exchange rate depreciation into headline
inflation.  We note the central bank's recent efforts to simplify
the monetary policy framework. However, the cuts to the upper
range of the interest rate corridor loosen monetary policy
settings at a time when core inflation remains stubbornly above
9% and inflation expectations are around 7.5% in one year's time
and 7% in two years' time," S&P said.

                              OUTLOOK

The stable outlook reflects S&P's expectation that Turkey's
economic growth prospects will remain resilient to external
shocks and domestic political risks and that the government will
post modest fiscal deficits, against lingering geopolitical risks
and still-high external financing needs.

S&P could lower its ratings if Turkey's fiscal performance and
debt metrics were to deteriorate beyond S&P's current
expectations.  This could occur, for instance, following a sudden
drop in government revenues, higher government expenditures, or
the materialization on the government's balance sheet of
contingent liabilities from financial-sector instability.

S&P could also lower its ratings if it was to view the ability of
the Turkish economy to roll over its external debt as weakening,
for instance resulting from a change in investor sentiment in
relation to regional or domestic instability, the perception of a
deterioration in monetary policy credibility, tightening global
policy rates, or a sharp rise in external debt.  In S&P's view,
such an outcome would have broad negative macroeconomic effects.

S&P could raise its ratings if a sustained rebalancing of the
source of economic growth resulted in much lower external
borrowing needs.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable.  At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee
by the primary analyst had been distributed in a timely manner
and was sufficient for Committee members to make an informed
decision. After the primary analyst gave opening remarks and
explained the recommendation, the Committee discussed key rating
factors and critical issues in accordance with the relevant
criteria. Qualitative and quantitative risk factors were
considered and discussed, looking at track-record and forecasts.

The committee revised the "fiscal assessment: debt burden" to a
strength from neutral.

The chair ensured every voting member was given the opportunity
to articulate his/her opinion.  The chair or designee reviewed
the draft report to ensure consistency with the Committee
decision. The views and the decision of the rating committee are
summarized in the above rationale and outlook.  The weighting of
all rating factors is described in the methodology used in this
rating action.

RATINGS LIST

                              Rating            Rating
                              To                From
Turkey (Republic of)
Sovereign Credit Rating
  Foreign Currency|U^          BB+/Stable/B     BB+/Neg./B
  Local Currency|U^            BBB-/Stable/A-3  BBB-/Negative/A-3
  Turkey National Scale|U^     trAAA/--/trA-1   trAAA/--/trA-1
Transfer & Convertibility
  Assessment|U^                BBB               BBB

|U^ Unsolicited ratings with issuer participation and access to
internal documents.



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


BEALES: Set to Close Three Stores Following CVA Deal
----------------------------------------------------
Suzanne Bearne at Drapers reports that Beales is poised to close
three stores less than two months after it won the support of
creditors for a company voluntary arrangement (CVA) that allowed
it to slash its rent bill.

As reported by the Troubled Company Reporter-Europe on March 9,
2016, Western Gazette related Beales announced its plans to enter
into CVA on March 7.  In Beales' case, the proposal only affects
the landlords of stores that are, or are likely to be, loss-
making and Beales will invite the landlords of those premises to
"restructure" their leases, Western Gazette disclosed.

Beales is a Bournemouth-based department store chain.


BESTWAY UK: S&P Lowers CCR to B, Outlook Remains Negative
---------------------------------------------------------
S&P Global Ratings lowered to 'B' from 'B+' its long-term
corporate credit rating on Bestway UK Holdco Ltd., the parent
company of U.K.-based food wholesale and pharmacy subsidiaries of
Bestway Group.  The outlook remains negative.

At the same time, S&P affirmed its issue rating on Bestway UK's
GBP725 million senior secured facilities at 'BB-'.  S&P revised
its recovery rating on this debt to '1' from '2', indicating its
expectation of a very high (90%-100%) likelihood of recovery in
the event of a default.

The downgrade follows Bestway UK posting financial results for
the eight months from July 2015 to February 2016 that were
materially weaker than S&P had expected.  The deterioration is
due to ongoing competitive pressures on the company's wholesale
business, as well as continuing food-price deflation in the U.K.

Revenues from the wholesale business declined by 3.6%.  Reported
EBITDA margin declined to 1.8% during the first eight months of
fiscal year 2016 (ending June 30) from over 3.0% for the same
period in 2015.  Previously, S&P expected its S&P-adjusted EBITDA
(including our operating lease adjustment) for fiscal 2016 to be
GBP130 million-GBP135 million. Factoring in current operating
performance, however, S&P now expects it to be meaningfully lower
at around GBP110 million-GBP115 million.  S&P expects free
operating cash flow (FOCF) to be positive in fiscal 2016
(excluding acquisition spending in the pharmacy business, which
S&P understands management views as discretionary, and which is
currently suspended).

S&P believes the shortfall in operating performance has caused
covenant headroom to tighten significantly, and S&P understands
that management is working on measures to provide near-term
relief.  In particular, the company continues to make debt
repayments using dividends received from overseas subsidiaries
and its own cash flows, which should alleviate the pressure on
covenants.

"That said, the negative outlook reflects our expectation that
Bestway UK's liquidity will remain under pressure, as headroom
under the group's financial covenants will remain tight at less
than 15% if Bestway UK's operating performance does not improve.
We continue to assess the group's liquidity as adequate, even
though we expect covenant headroom to be 4%-10% (which is below
our criteria definition of adequate).  This is because we
estimate that liquidity sources will exceed funding needs by more
than 1.2x in the next 12 months.  We also believe the company
will maintain good relationships with its banks, and that it will
be able to absorb high-impact, low-probability events with
limited need for refinancing. In our opinion, liquidity is
supported by the flexibility to reduce capital expenditure
(capex) if needed; we note that Bestway UK has already suspended
acquisition capex in the pharmacy division in this current
financial year.  In addition, if liquidity comes under pressure,
we expect the company would continue to receive support from the
overseas subsidiaries of its parent Bestway (Holdings) Ltd.
(Bestway Group) in the form of dividends.  The group has a track
record of doing this," S&P said.

S&P continues to assess Bestway UK's business risk profile as
fair and financial risk profile aggressive.  S&P combines these
factors to derive a 'bb-' anchor.  The rating incorporates a one-
notch downward adjustment for S&P's comparable rating analysis
whereby it reviews Bestway UK's credit characteristics in
aggregate.  The notching down primarily reflects S&P's view that
Bestway UK's business risk profile is at the lower end of the
fair category.

S&P's assessment of Bestway UK's business risk profile as fair
reflects the group's well-established positions in the U.K. food
wholesale and pharmacy markets.  S&P considers the barriers to
entry posed by the restricted issue of new pharmacy licenses in
the U.K. as an important business strength.  At the same time,
S&P's assessment is tempered by what it considers to be the
highly competitive nature of both the food wholesale and pharmacy
markets and the group's exposure to government funding and
regulatory risks in the pharmacy business.  S&P also sees the
geographical concentration of earnings in the U.K. as a limiting
factor.  The profitability of the combined group (the pharmacy
and the wholesale business) is lower than average, in S&P's view,
when compared with rated peers in the wider retail sector,
especially following significant declines in profitability in the
wholesale business.

"We assess Bestway UK's financial risk profile as aggressive, and
we expect that some of its S&P-adjusted credit ratios will remain
in this category in 2016 and 2017.  However, we forecast a
gradual decline in absolute debt over the next year or two as a
result of mandatory repayments under term loan A.  Under our
base-case scenario, we estimate that Bestway UK will post S&P-
adjusted debt to EBITDA of about 4.2x-4.5x and funds from
operations (FFO) to adjusted debt of about 12% in fiscal 2016,"
S&P said.

S&P believes Bestway UK will steadily restore sales growth over
the medium term on the back of some growth in the pharmacy
segment, while weaker performance in the food retail segment
persists amid high competition and food price deflation.
Earnings should also be supported by Bestway UK's ongoing cost-
reduction efforts aimed at withstanding pricing pressures that
flow from Bestway UK's customers and are inherent to its
wholesale cash-and-carry operations.

S&P views Bestway UK as a core subsidiary of the wider Bestway
Group that incorporates Bestway UK, majority ownership in
Pakistan-based United Bank Ltd. (UBL), and Bestway Cement Ltd.
(BCL).  S&P assess the group credit profile (GCP) at 'b',
supported by Bestway UK's 'b+' stand-alone credit profile (SACP)
but constrained by the country risk of and sovereign rating on
Pakistan (B-/Positive/B), which caps the group's Pakistan-based
bank and cement subsidiaries.

"In our opinion, Bestway UK plays an integral part in Bestway
Group's strategy of growing its U.K. presence and expanding in
markets adjacent to the wholesale operations that Bestway Group
had originally developed.  We base our view of Bestway UK's core
status on its legacy status within the group, including the
shared name of Bestway UK Holdco and Bestway Holdings,
underpinned by Bestway's brand recognition in the U.K. wholesale
market.  We note that the financing structure in the GBP725
million senior facilities agreement restricts dividend leakage
from the U.K. operations to overseas subsidiaries.  Finally, we
view positively management's track record over the past five
years of using a significant part of dividends received from
overseas subsidiaries to reduce debt at the U.K.-based
subsidiaries," S&P noted.

The negative outlook reflects that S&P could downgrade Bestway UK
further if its operating performance and cash flow generation do
not stabilize or if covenant headroom does not improve
sustainably above 15%.  The latter would lead S&P to revise its
liquidity assessment to less than adequate and the SACP to 'b'
from 'b+'.

The rating could come under pressure if S&P revises down the GCP.
S&P would consider doing this if management could not
successfully turn around its operations or if Bestway UK did not
maintain its profitability levels.  These shortcomings would
affect not only Bestway UK's credit ratios but also its business
risk, thereby impairing the performance of the whole group.  S&P
could also downgrade Bestway UK if its business risk profile
comes under strain due to sustained weak trading, accompanied by
a significant drop in sales, margins, or market share.  This
could occur if Bestway UK fails to offset negative trading in its
wholesale business with growth initiatives in the pharmacy
segment and/or if the group faces unfavorable regulatory changes.
Also, S&P will take a negative rating action if credit metrics
deteriorate to the highly leveraged category, particularly if FFO
to debt declines below 12% and adjusted debt to EBITDA increases
above 5x.

S&P could also lower the ratings if it sees increased risks
within other parts of Bestway Group, particularly its banking
operations in Pakistan.  This could happen if, for instance, S&P
was to take a negative rating action on Pakistan.  In that
scenario, S&P would examine the impact of the above-mentioned
factors on Bestway UK's SACP, as well as the GCP.

S&P could consider revising the outlook to stable if the company
restored covenant headroom to above 15% through a sustainable
improvement in earnings and cash flows. An outlook revision would
also hinge on the company restoring its operating performance and
free cash flow generation and maintaining an adjusted debt-to-
EBITDA ratio of comfortably lower than 5x, an FFO to debt well
above 12%, and adjusted EBITDA interest coverage sustainably
above 3.5x.

S&P would also expect the company to maintain a prudent financial
policy, particularly regarding acquisitions in the pharmacy
business, which S&P would expect to remain discretionary and
financed by dividend inflows from the overseas subsidiaries.

S&P could raise the rating if it revised up the GCP.  This could
happen if Bestway UK's credit metrics improve due to stronger
deleveraging than S&P currently anticipates, and if S&P assess
its financial risk profile as commensurate with a stronger
category. Also, positive pressure on the rating could build if,
for instance, S&P was to take a positive rating action on
Pakistan.  In that scenario, S&P would examine the impact of the
above-mentioned factors on the GCP.


BHS GROUP: PPF Learnt of Sale in Newspapers, Committee Hears
------------------------------------------------------------
Mark Vandevelde and Josephine Cumbo at The Financial Times report
that a parliamentary committee has heard regulators had spent
more than a year discussing BHS's "very atypical" 23-year plan to
close its pension deficit when they learnt "in the newspapers"
that Sir Philip Green had sold the chain for GBP1.

"At that point, we immediately opened an anti-avoidance case,"
Lesley Titcomb, chief executive of the Pensions Regulator, told
MPs investigating the collapse of the high-street retailer, the
FT relates.

The regulator, the FT says, is still assessing whether it can
force Sir Philip or his Arcadia Group to contribute to the cost
of rescuing BHS pensioners, after the chain fell into
administration this month.  It said the investigation could take
until the end of this year, the FT relays.

Alan Rubenstein, chief executive of the Pension Protection Fund,
estimated the cost of absorbing the BHS schemes at GBP275
million, the FT states.  Trustees believe an insurance company
would charge GBP571 million to cover the scheme's liabilities in
full, the FT notes.

The Pensions Regulator and the PPF were the first witnesses in
hearings called by the work and pensions committee into BHS's
failure, the FT discloses.  Sir Philip is due to appear in front
of MPs next month, the FT relays.

Separately, it emerged that Sir Philip had demanded talks with
ministers over BHS pensions as early as 2012, the FT recounts.
MPs heard that his request came after the closure of a loophole
increased the amount that the lossmaking chain had to pay to the
PPF, according to the FT.

Under rules in force before 2012, many companies could claim a
discount on the risk-based levy if a guarantee was pledged over
the deficit, the FT states.

A BHS subsidiary called Davenbush had offered such a pledge but
decided not to renew it in 2012 after the PPF tightened the
rules, the FT relates.

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


COGNITA BONDCO: Moody's Affirms B2 CFR & Changes Outlook to Neg.
----------------------------------------------------------------
Moody's Investors Service has changed Cognita Bondco Parent
Limited and Cognita Financing plc's rating outlook to negative
from stable.  At the same time, Moody's has affirmed the
company's B2 corporate family rating and B2-PD probability of
default rating, as well as the B2 instrument ratings on its
GBP280 million senior secured notes due in 2021.

                     RATINGS RATIONALE

"The change in the outlook to negative reflects Moody's
expectations that the recent Hong Kong school acquisition and
large partly debt-funded capital expenditure projects in
Singapore will delay an expected reduction in leverage, with
Moody's adjusted debt/EBITDA likely to remain above 8.0x for the
fiscal year ending August 2016," says Pieter Rommens, a Moody's
Vice President and Senior Analyst.

Cognita's B2 CFR reflects the company's (1) position as a leading
player with a geographically diversified portfolio of 70 schools
on three continents; (2) established track-record of achieving
revenue growth and operational leverage through organic and
acquisitive growth and tuition fee increases above cost
inflation; (3) protection by barriers to entry through
regulation, brand reputation and purpose built real-estate
portfolio; (4) strong revenue visibility from committed student
enrolments and (5) supportive underlying growth drivers for the
private-pay education market.

The CFR is constrained by the company's (1) high Moody's adjusted
leverage of 8.1x in the year ending August 2015; (2) aggressive
debt-funded acquisition and capacity expansion strategy, limiting
free cash flow generation and deleveraging prospects in the near
term; (3) reliance on its academic reputation and brand quality
in a highly regulated environment and (4) exposure to changes in
the political and legal environment in emerging markets.

Moody's considers Cognita's near-term liquidity position to be
adequate, based on a cash balance of about GBP62 million and
approximately GBP52 million of undrawn super senior Revolving
Credit Facility undrawn at the end of February 2016.  In
addition, the company has signed a separate GBP5.5 million Asian
local working capital facility.

However, Moody's expects the company to use its cash on the
balance sheet and GBP60 million RCF to fund its large projected
capital expenditure, including the remaining GBP78 million
Singapore project expenditure and GBP37 million Hong Kong
development capex.

                               OUTLOOK

The negative rating outlook reflects Moody's expectation that the
Hong Kong school acquisition will delay Cognita's expected
reduction in leverage, with Moody's adjusted gross debt/EBITDA
likely to remain above 7.0x in the next 12-18 months.

However, Moody's expects the company will continue to benefit
from stable and predictable cash flows, revenue growth from
planned capacity increases and fee growth above cost inflation
and achieve cost efficiencies through operational leverage.

WHAT COULD CHANGE THE RATINGS UP

Upward rating pressure is unlikely over the next 12-18 months,
given the negative outlook.  However, the outlook would likely
revert to stable, if the company's debt/EBITDA ratio falls below
7.0x on a sustainable basis, while maintaining an adequate
liquidity profile.

Upward pressure on the ratings could develop over time if
adjusted debt-to-EBITDA declines and is sustained below 6.0x and
retained cash flow to debt improves above 10% while maintaining
an adequate liquidity profile.

WHAT COULD CHANGE THE RATINGS DOWN

Downward pressure on the ratings could arise if earnings weaken
and/or the company undertakes large-scale acquisitions, such that
adjusted debt-to-EBITDA does not trend towards 7.0x in the next
12-18 months, or if the liquidity profile weakens.

The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014.

Headquartered in the UK, Cognita Schools is an international
independent schools group offering primary and secondary private
education in 70 schools across seven countries in Europe, Asia
and Latin America.  Bregal Capital and KKR Private Equity each
own 50% of the shares of Cognita.  In the LTM February 2016
period, the company reported GBP310 million revenue and GBP58
million management adjusted EBITDA.


HARKAND GROUP: Vard Evaluates Options Following Administration
--------------------------------------------------------------
Offshore Energy Today reports that Vard, a Norwegian company
building vessels for the offshore oil and gas industry, is
evaluating its options following news on Harkand entering into
administration.

Harkand Group, a provider of subsea capabilities and services to
the energy industry, entered into administration following losses
as a result of a prolonged low oil price environment, Offshore
Energy Today relates.

According to Offshore Energy Today, in a statement on May 9, Vard
said that Harkand has one Diving Support and Construction Vessel
under construction at Vard, originally contracted in December
2013 for delivery from Vard Soviknes in the second quarter of
2016.

Harkand -- http://www.harkand.com-- provides subsea capabilities
and services to the energy industry including multi-purpose and
dive support vessels, ROVs, inspection, diving, survey, project
management and engineering.  Headquartered in London with
operations bases in Aberdeen, Houston, Mexico and Ghana, Harkand
aims to be a leading subsea IRM and light construction contractor
globally.


HONOURS PLC 2: Moody's Puts Cl. D Notes' Ba2 Rating Under Review
----------------------------------------------------------------
Moody's Investors Service has placed on review for downgrade the
ratings of classes B, C & D of notes issued by Honours PLC Series
2, UK asset-backed securities backed by student loans.  The
placement on review for downgrade reflects the cost incurred by
the transaction resulting from non-compliance with consumer
credit legislation and increased costs associated with
counterparties in the transaction.

RATINGS RATIONALE

The rating action affecting this student loans transaction was
prompted by the future costs associated with the non-compliance
with consumer credit legislation by Ventura Plc (bought in 2011
by Capita Plc), Honours 2 servicer from 2006 to January 2016.
The provision of GBP10.9 million is reflected in the 2015
financial statements (published February 2016), which is placing
downwards pressure on the deal.

Servicer changed from Ventura Plc to Link Financial Outsourcing
Limited on Jan. 30, 2016.  The setup costs associated with the
change in servicer have contributed to the current unpaid PDL of
GBP1.5 million.

As of the end of March 2016, 86% of the portfolio balance was in
deferment while 9% was in repayment mode and 5% overdue.  The
high proportion of loans in deferment has a negative effect on
the Government's subsidy, which combined with the above results
in lower excess spread being produced within the deal.

As part of the full review, Moody's will focus on the dynamic of
the portfolio composition and the ability of the excess spread to
absorb future defaults.

METHODOLOGY

The principal methodology used in these ratings was "Moody's
Approach to Monitoring Scheduled Amortisation UK Student Loan-
Backed Securities" published in April 2015.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR A DOWNGRADE OF THE
RATINGS:

Factors or circumstances that could lead to an upgrade of the
ratings are (1) better-than-expected underlying collateral
performance, (2) deleveraging of the capital structure, (3)
improvement of the counterparties' credit quality.

Factors or circumstances that could lead to a downgrade of the
ratings are (1) worse-than-expected underlying collateral
performance, (2) deterioration of the notes' available credit
enhancement, and (3) deterioration of the counterparties' credit
quality.

List of Affected Ratings:

Issuer: Honours PLC Series 2

  GBP33.35 mil. B Notes, A3 (sf) Placed Under Review for Possible
   Downgrade; previously on Aug. 31, 2011, Downgraded to A3 (sf)

  GBP18 mil. C Notes, Baa2 (sf) Placed Under Review for Possible
   Downgrade; previously on Nov. 14, 2006, Definitive Rating
   Assigned Baa2 (sf)

  GBP11.95 mil. D Notes, Ba2 (sf) Placed Under Review for
   Possible Downgrade; previously on Nov. 14, 2006, Definitive
   Rating Assigned Ba2 (sf)


TATA STEEL UK: Seven Bids Move on to Next Stage of Sales Process
----------------------------------------------------------------
Alan Tovey at The Telegraph reports that seven bids for Tata's
beleaguered British steel business have gone through to the next
stage of the sales process, with the company only considering
those looking to buy the entire UK operations.

Tata put its loss-making steel business up for sale in late April
after the company's main board in India voted against backing a
turnaround plan, The Telegraph recounts.

The decision put the jobs of Tata's 11,000 UK steelworkers under
threat, along with at least twice as many positions in the
company's supply chain and in communities, which depend on the
steel plants, The Telegraph notes.

The board decided it could no longer sustain losses which had run
as high as GBP1 million a day at the business which includes the
iconic Port Talbot plant in South Wales, The Telegraph relays.

Pledging to be a "responsible seller", Tata invited bidders for
the business, saying its preference was to sell it in its
entirety to a single bidder, The Telegraph recounts.

Tata, as cited by The Telegraph, said it was contacting almost
200 potential buyers and it is understood to have received more
than 60 initial expressions of interest for either all or part of
the business in time before the first deadline expired on May 3.

Although seven bids have been "immediately taken forward to the
next stage", the number could rise, with Tata saying it is
"clarifying outstanding points with a number of other parties",
The Telegraph relays states.  It is thought this could see the
number of potential buyers increase to 10, The Telegraph notes.

"We have been pleased with the response to the initial stage of
the global sales process for Tata Steel's UK business," The
Telegraph quotes Koushik Chatterjee, group executive director, as
saying.

"The expressions of interest received have been through a robust
initial assessment process with inputs received from the UK
Government whose views have been considered by the board.  We
believe that the bids being taken forward offer future prospects
of sustainability for the UK business as a whole."

The company has refused to release details of the timeframe for
the disposal, but it confirmed it was being carried out in "an
expedited and robust manner to deliver greater clarity for all
key stakeholders such as employees, customers and suppliers",
according to The Telegraph.

Tata's main board in India is due to meet on May 25 and could
make a decision on prospective bids, but the sheer size of the
sale means that a final decision could take months, The Telegraph
states.

Tata Steel is the UK's biggest steel company.


TATA STEEL UK: JSW Among Seven Bidders for Operations
----------------------------------------------------
Michael Pooler, Peggy Hollinger and Simon Mundy at The Financial
Times report that JSW Steel, one of India's largest steel groups,
has emerged as a last-minute bidder for Tata Steel's ailing UK
steel operations.

According to the FT, JSW is one of seven bidders, which Tata
Steel has taken forward to the next stage of the sales process,
reviving hopes that its UK operations, which employ 11,000
people, might be saved.

Should JSW be successful, it would mean the collection of
factories passing from the hands of one Indian owner to another,
the FT notes.

JSW's capacity is nearly double that of Tata Steel's Indian
operations, trailing only state-owned Steel Authority of India,
the FT states.

Other bidders for Tata Steel include the commodities trading
group Liberty House and Greybull, the investment firm which has
provisionally agreed to acquire Tata's Scunthorpe steelworks, the
FT discloses.

Also on the list was a Chinese group and the US steel producer
Nucor, according to one person with knowledge of the sales
process, the FT relays.

Bidders who only wanted to buy parts of Tata's operations
piecemeal were excluded from the next round, according to the FT.

Tata Steel is the UK's biggest steel company.


                            *********

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-
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Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Rousel Elaine T. Fernandez,
Joy A. Agravante, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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