TCREUR_Public/160513.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Friday, May 13, 2016, Vol. 17, No. 94


                            Headlines


C Z E C H   R E P U B L I C

POJISTOVACI MAKLERSTVI: Moody's Repositions NSRs to B1.cz


G E R M A N Y

GERMAN PELLETS: Insolvency Administrator Sells Three Plants
PROGROUP AG: S&P Revises Outlook to Pos. & Affirms B+ CCR
UMLAUF & KLEIN: Alteri Provides Financing Package

* GERMANY: Business Insolvencies Down 2% in February 2016


I R E L A N D

ENDO INT'L: S&P Affirms B+ CCR & Revises Outlook to Negative
PETROCELTIC INT'L: Worldview Set to Take Full Control of Business


I T A L Y

ASTALDI SPA: Moody's Lowers CFR to B2; Outlook Negative
FIAT CHRYSLER: Moody's Raises CFR to Ba3; Outlook Stable


K A Z A K H S T A N

BANK CENTERCREDIT: Moody's Repositions NSR to Ba2.kz
EASTCOMTRANS LLP: Moody's Repositions NSR to B1.kz


L U X E M B O U R G

CNH INDUSTRIAL: S&P Assigns BB+ Rating to Sr. Unsecured Notes


N E T H E R L A N D S

* NETHERLANDS: Company Bankruptcies Down in April 2016


N O R W A Y

LOCK LOWER: Moody's Puts B2 CFR on Review for Downgrade


P O L A N D

SKOK ARKA: Financial Market Regulator Files Bankruptcy Motion


R U S S I A

ASIAN-PACIFIC BANK: Moody's Withdraws B3 LT LC Deposit Rating
OTP BANK: Moody's Withdraws Ba3/Not-Prime Deposit Ratings


S W E D E N

UNILABS MIDHOLDING: Moody's Changes Outlook on B3 CFR to Stable


T U R K E Y

EXPORT CREDIT: S&P Affirms BB+/B FC Ratings; Outlook Stable
YAPI VE KREDI: S&P Affirms BB+ Credit Rating; Outlook Stable


U N I T E D   K I N G D O M

BHS GROUP: Green Balks at Pension Regulator's Claims on Sale
SMALL BUSINESS 2016-1: Moody's Assigns Ba1 Rating to Cl. D Notes
SMALL BUSINESS 2016-1 DAC: S&P Rates Class D (Dfrd) Notes 'B(sf)'


X X X X X X X X

* BOOK REVIEW: Risk, Uncertainty and Profit


                            *********



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


POJISTOVACI MAKLERSTVI: Moody's Repositions NSRs to B1.cz
---------------------------------------------------------
Moody's Investors Service has repositioned the national scale
ratings (NSRs) of Pojistovaci maklerstvi INPOL a.s. (Inpol) to
B1.cz from Baa1.cz. issuers in conjunction with the recalibration
of the Czech national rating scale.  In addition, Moody's has
published Inpol's global scale ratings (GSRs) for the first time.

NSRs, which provide a measure of relative creditworthiness within
a single country, are derived from GSRs using country-specific
maps.  The adoption of a revised correspondence between Moody's
GSRs and the Czech national scale, and the publication of
previously unpublished GSRs, follows the publication of Moody's
updated methodology "Mapping National Scale Ratings from Global
Scale Ratings".  To enhance transparency of the meaning of NSRs
and to minimize the chances they will be misinterpreted, the
updated methodology calls for the publication of an issuer's
corresponding GSR whenever Moody's publishes an issuer's NSR.
While this has long been Moody's typical practice, it will now be
applied to all issuers with NSRs.  As a result, Moody's is now
publishing for the first time the GSRs of several issuers that
previously only had public NSRs.

With approximately 30 fundamental issuers in Czech Republic rated
by Moody's, the new map has been designed using the standard
approach, whereby the map design is selected from a set of
standard maps based upon the anchor point, or the lowest GSR that
can map to a Aaa.cz.  Per the standard approach, Czech Republic's
anchor point is unchanged at A1, which is equal to the sovereign
bond rating.  All GSRs from A1 to Baa1 will map to two ratings on
the national scale.  The revised map provides more opportunities
for credit differentiation on the national scale where GSRs
concentration is highest -- specifically at the anchor point as
well as at the A2 and A3 GSR levels -- than the previous map did.
In addition, in order to clarify the meaning of NSRs, overlap --
where two GSRs can correspond to the same NSR -- has been
eliminated from the Czech national scale map, so every NSR now
maps back to just one GSR.  As a result of these changes, GSRs of
Ca and above will correspond to NSRs as many as six notches lower
on the Czech scale than they did previously.

Consequently, approximately 90% of Czech issuer's primary long-
term NSRs are being repositioned an average of 2 notches lower.
Certain other NSRs may be affected for these and other issuers as
well.  The repositioned NSRs of individual issuers do not signify
a change in credit risk, since the GSRs for these issuers remain
unchanged.

As a result of the recalibration, the level of risk associated
with a particular Czech NSR level (e.g. Baa2.cz) has changed in
many cases.  NSRs have no inherent absolute meaning in terms of
default risk or expected loss; they are ordinal rankings of
creditworthiness relative to other domestic issuers within a
given country.  A historical probability of default and/or
expected loss consistent with a given NSR can be inferred from
the GSR to which it maps back at that particular point in time.
However, both the probability of default and the expected loss of
an NSR may change if and when a country's national scale is
remapped.

RATINGS RATIONALE

  -- NATIONAL SCALE RATING --

NSRs are assigned by applying the published correspondence from
GSRs.  Where a single GSR maps to multiple NSRs, rating
committees assigned higher or lower NSRs to individual issuers
and debts depending on their relative credit position within the
same GSR category, using the same methodologies as were used to
determine the GSRs themselves.

  -- GLOBAL SCALE RATING: CORPORATE FAMILY RATING --

Inpol's B1 CFR and B1-PD PDR reflects Inpol's very modest size
both domestically and particularly internationally, its lack of
geographic diversification out of the Czech Republic, high client
concentration and susceptibility to political risk.  More
positively, the company has very low debt and good profitability
fundamentals.

The company ranks amongst the top 10 brokers domestically, but
its market share is significant below that of international
brokers and larger domestic players.  The company's small size
leads to significant concentration risk by client and insurance
provider. Inpol has reported strong growth in recent years,
peaking at 51% in 2013.  However, we expect intensifying
competition in the broker market and premium rate declines across
the Czech non-life insurance market to limit future organic
growth.  Furthermore, although client retention has been good
historically, Moody's believes Inpol is vulnerable to political
risk.

Inpol's profitability is good and compares favorably to global
peers in terms of net profit margin, which has been improving
year-on-year to a 3 year average of 15.3% in 2014.  The EBITDA
margin is good and at 25.3% on a 3 year average basis, broadly in
line with the rated peer average.  However, absolute
profitability levels remain very small, and will be pressured in
line with Inpol's revenues.

Extremely low financial leverage is Inpol's key credit strength
and the company had total outstanding debt of only CZK3.1 million
(around USD0.1 million) at YE2014.  However, Inpol's small size
and private ownership, together with the limited capacity of the
Czech capital market, constrains the company's access to
additional funds if necessary.

WHAT COULD CHANGE THE RATINGS -- UP AND DOWN

The NSRs would face upward or downward pressure if their
corresponding GSRs are upgraded or downgraded, unless this is in
conjunction with a sovereign rating action that results in
another recalibration of the Czech national scale with an
offsetting impact on NSRs.  In addition, the NSRs may be
repositioned upwards (downwards) if Czech Republic's sovereign is
downgraded (upgraded) and the map is revised accordingly, but the
corresponding GSRs have not changed as a result of the sovereign
action.  Because of the higher granularity of national scales,
NSRs may also face pressure due to changes in creditworthiness
that are not sufficient to cause a change in the corresponding
GSR, measured using the same methodologies used to determine the
GSR.

Moody's also says that upward pressure on Inpol's CFR could be
exerted in an event of a meaningful expansion in the company's
business profile, for example through a sustained growth in
market share or co-operation with or takeover by a stronger
international broker, and absent of change in key personnel and
management of Inpol.

Conversely, Moody's added that the following factors could exert
downward pressure on the CFR: (1) significant market position
deterioration due to abrupt changes in the broker market for
example as a result of the introduction of government-mandated
market reforms, or a significant deterioration in client
retention; (2) sustained reduction in net profit margins below
5%; and/or (3) a substantial increases in leverage, with
debt/EBITDA ratios above 3x.

LIST OF AFFECTED RATINGS

Moody's has assigned these ratings to Pojistovaci maklerstvi
INPOL a.s.:

  Corporate Family Rating at B1
  Probability of Default Rating at B1-PD

Moody's has repositioned this rating on Pojistovaci maklerstvi
INPOL a.s.:

  National Scale Rating - B1.cz from Baa1.cz

The rating outlook on Pojistovaci maklerstvi INPOL is stable.

Inpol, headquartered in Prague, Czech Republic, reported total
revenues of CZK162 million for year-end 2014 (2013: CZK 144
million) and shareholders' equity of CZK82 million.

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was Insurance
Brokers and Service Companies published in December 2015.

Moody's National Scale Credit Ratings (NSRs) are intended as
relative measures of creditworthiness among debt issues and
issuers within a country, enabling market participants to better
differentiate relative risks.  NSRs differ from Moody's global
scale credit ratings in that they are not globally comparable
with the full universe of Moody's rated entities, but only with
NSRs for other rated debt issues and issuers within the same
country. NSRs are designated by a ".nn" country modifier
signifying the relevant country, as in ".za" for South Africa.
For further information on Moody's approach to national scale
credit ratings, please refer to Moody's Credit rating Methodology
published in May 2016 entitled "Mapping National Scale Ratings
from Global Scale Ratings".  While NSRs have no inherent absolute
meaning in terms of default risk or expected loss, a historical
probability of default consistent with a given NSR can be
inferred from the GSR to which it maps back at that particular
point in time.


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G E R M A N Y
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GERMAN PELLETS: Insolvency Administrator Sells Three Plants
-----------------------------------------------------------
Erin Voegele at Biomass Magazine reports that the law firm of an
attorney serving as insolvency administrator to German Pellets
GmbH has released a statement noting three of the company's
pellet plants in Germany have been sold, with negotiations
ongoing in the sale of a fourth.

According to Biomass Magazine, the statement said a district
court in Schwerin, Germany, opened the insolvency proceedings
over the assets of German Pellets on May 1 and appointed
Bettina Schmudde, an attorney and partner with law firm White &
Case, as insolvency administrator.  On the same day, Ms. Schmudde
closed several contracts with investors, which ensure the
continuation of significant parts of the German Pellets group,
Biomass Magazine relates.  The company began insolvency
proceedings earlier this year, Biomass Magazine notes.

The Wismar, Germany site will be taken over by Metropolitan
Equity Partners Management LLC, a New York-based financial
advisory firm that has extensive experience in the development of
companies, Biomass Magazine discloses.

The Ettenheim and Herbrechtingen, Germany, plants will be taken
over by German-based J. Rettenmaier & Soehne GmbH + Co KG, a
global pulp producer, Biomass Magazine states.

The statement said negotiations are currently ongoing regarding
the sale of the Torgau, Germany, plant, Biomass Magazine relays.

German Pellets is a production company based in Wismar, Germany.
The company produces various kinds of wood pellets for pellet
heating and pellet ovens and animal hygiene products for horses,
large and small animals.


PROGROUP AG: S&P Revises Outlook to Pos. & Affirms B+ CCR
---------------------------------------------------------
S&P Global Ratings revised its outlook on German corrugated board
and containerboard producer Progroup AG and JH-Holding Finance
S.A., a financing subsidiary of Progroup's holding company
JH-Holding GmbH, to positive from stable.  At the same time, S&P
affirmed its 'B+' long-term corporate credit ratings on both
entities.

S&P also affirmed its 'B+' issue rating on the EUR495 million
senior secured notes borrowed by Progroup, consisting of
EUR150 million floating-rate notes and EUR345 million fixed-rate
notes.  The recovery rating remains '4', indicating that S&P's
recovery expectations are in the higher half of the 30%-50%
range.

S&P also affirmed its 'B-' issue rating on the EUR125 million
payment-in-kind (PIK) toggle notes issued by JH-Holding Finance.
The recovery rating remains '6', reflecting S&P's expectation of
negligible (0%-10%) recovery in the event of a payment default.

The outlook revision follows Progroup's strong operational
performance in 2015, whereby its earnings were supported by
increased sales volumes, favorable pricing, and increased
integration between its containerboard and corrugated board
business segments.  This resulted in its EBITDA margin improving
to 22.1% compared with 18.9% in 2014.  S&P thinks that Progroup's
margin could be pressured in the second half of 2016 and in 2017
due to overcapacity in the containerboard markets which is likely
to put downward pressure on pricing.  However, offsetting this
will be the integration of a combined heat and power plant
acquired by Progroup in late 2015, which will provide about
EUR30 million in additional annual EBITDA.  As a result, S&P
thinks it is likely the company will be able to maintain an
EBITDA margin about 20%, a level S&P considers clearly above
average in the broader forest and paper product industry.  S&P
thinks that sales growth will be driven by additional corrugated
board volumes out of green field projects, which will gradually
add capacity. This notably includes the new machine in Plossberg,
which came online in October 2015, and an additional machine in
Poland, which is planned to come online in late 2016.  S&P thinks
that Progroup's strong profitability in combination with a
disciplined investment program and a conservative financial
policy could lead to improvements in the company's financial risk
profile in the coming two years.

S&P's fair assessment of Progroup's business risk profile is
constrained by its position as a relatively small player in the
oversupplied, fragmented, commodity-like, and highly competitive
European paperboard market.  Progroup has a rather high degree of
asset concentration, with an asset base that consists of two
containerboard plants and eight corrugated board plants.  This
makes the group vulnerable to unexpected downtime at one of its
plants, in particular with regard to its containerboard plants.

These weaknesses are partly mitigated by Progroup's
differentiated business model, with its focus on corrugated
sheets, as well as its modern machines, well-invested asset base,
and strong cost position.  These all lead to relatively strong
EBITDA generation through the business cycle.  The group enjoys
well-established customer relationships with small and midsize
Central European corrugated box makers and has very limited
customer and supplier concentration.  S&P also considers that
Progroup is well placed to capture growth in the expanding
recycled paperboard market.

S&P's assessment of Progroup's financial risk profile as
aggressive incorporates the group's relatively high leverage on a
consolidated basis (S&P uses accounts at the JH-Holding GmbH
level when assessing the group's financial risk profile).  As of
year-end 2015, S&P calculates FFO to debt of 16% and debt to
EBITDA of 4.3x (without pro forma earnings from the CHP plant).
These relatively weak levels, in combination with Progroup's
small size and limited scope, are the reasons why S&P applies a
one-notch negative adjustment to the 'bb-' anchor to arrive at
the 'B+' rating.

The positive outlook indicates that S&P could raise the rating in
the next 12 months if S&P was to assess that the financial risk
profile has permanently strengthened.  This could be the result
of further resilient performance in 2016, successful execution of
its capex program, and a maintained conservative financial
policy.

S&P could upgrade Progroup if S&P would assess that there was
little downside to the company's current credit metrics, namely
that FFO to debt would remain above 16% on a sustained basis.
Any ratings upside could only follow Progroup demonstrating a
continued cautious financial policy and stable operational
performance.

S&P could revise the outlook to stable if it was to assess that
Progroup's financial risk profile could weaken due to declining
corrugated board prices, higher investment levels, large dividend
payments, or debt-funded acquisitions.


UMLAUF & KLEIN: Alteri Provides Financing Package
-------------------------------------------------
Real Deals reports that Alteri Investors, the retail turnaround
vehicle backed by Apollo Global Management, has provided a
financing package to Umlauf & Klein.

Umlauf & Klein filed for insolvency in February, Real Deals
relates.

Alteri has provided a debtor-in-possession facility to
administrator Dr. Schulte-Kaubruegger which will allow the
business to fulfil its order book and continue trading while a
bidder is sought, Real Deals discloses.

Umlauf & Klei is a German fashion business.  The company designs
and distributes womenswear under the Concept K, 7 Season, Dresses
Unlimited and Cinderella Rocks brands.


* GERMANY: Business Insolvencies Down 2% in February 2016
---------------------------------------------------------
RTT News reports that data from Destatis on May 11 showed
German business insolvencies declined in February.

The local courts reported 1,842 business insolvencies in
February, which was a decline of 2% compared with prior year, RTT
News discloses.

According to RTT News, during January to February, business
insolvencies decreased by 2.3% from the same period of last year.


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I R E L A N D
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ENDO INT'L: S&P Affirms B+ CCR & Revises Outlook to Negative
------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' corporate credit rating on
pharmaceutical company Endo International PLC and revised the
outlook to negative from stable.

"The negative outlook reflects disruption to the company's 2016
free cash flow generation and slower deleveraging than we
expected as a result of the sudden weakening of its generic
franchise, increased litigation costs, and other negative
developments," said S&P Global Ratings credit analyst Kim Logan.
S&P now expects adjusted leverage to remain around 8x (including
litigation charges) in 2016 with no material reduction until
after 2017.  At the same time, S&P sees increased risk to its
base-case projections as a result of increased competitive
pressures and the possibility of additional legal settlements.

The company previously faced a higher-than-expected number of
claims for mesh cases, which resulted in an $834 million accrual
in the fourth quarter.  There is risk that legal expenses could
significantly increase, further challenging the company's free
cash flow generation.

S&P's negative outlook reflects the weakened generic franchise
and its view that the company's deleveraging pace will be slower
than S&P expected as a result of its expectation for negative
free cash flow in 2016.  While S&P is expecting free cash flow to
rebound to over $200 million in 2017 due to nonrecurrence of
certain costs, the risks to S&P's base case are that legal
expenses could significantly increase, further challenging the
company's free cash flow generation, while accelerated pressure
on generic pricing and volume from increased competition and
further volume pressure on the pain relief segment could result
in underperformance.

S&P could lower the rating if the company's cash flows weaken
materially beyond S&P's expectations as a result of increased
competitive pressure or significant litigation costs.  Operating
performance deterioration that results in revenue
underperformance and margin erosion (such as flat revenues with a
300 basis point to 400 basis point margin decline) and or minimal
free cash flow (under $100 million) could also lead to a lower
rating.

S&P could revise the rating back to stable if it gains confidence
that management can navigate the competitive challenges in the
generics industry and achieve S&P's base case expectations with
organic revenue growth and stable margins, reducing adjusted
leverage to under 7x.


PETROCELTIC INT'L: Worldview Set to Take Full Control of Business
-----------------------------------------------------------------
Michael Cogley at Independent.ie reports that activist investor
Worldview is to take full control of Petroceltic following a
decision from the examiner appointed to the company.

Michael McAteer -- michael.mcateer@ie.gt.com -- of Grant Thornton
was appointed as an examiner to the company back in April after a
request by minority shareholder Worldview, Independent.ie
recounts.

According to Independent.ie, in a statement released to
shareholders on May 12, Petroceltic said the examiner has
conducted a sales and investment process, which required best and
final offers.

"Following this process, the examiner has selected Worldview
International Management as the successful investor and expects
to proceed to sign an Investment Agreement over the coming days
which will result in Worldview taking control of the entire group
including those companies outside of the examinership process,"
Independent.ie quotes Petroceltic as saying.  "Upon signature of
this agreement, the examiner will convene the various meetings of
shareholder and creditor classes to vote on the proposed Scheme
of Arrangement towards the end of May.  Subject to Court
approval, the examinership process is expected to conclude in
early June."

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


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


ASTALDI SPA: Moody's Lowers CFR to B2; Outlook Negative
-------------------------------------------------------
Moody's Investors Service has downgraded to B2 from B1 the
corporate family rating (CFR) and the senior unsecured ratings of
Astaldi S.p.A. (Astaldi), an Italian multinational major
construction company. Concurrently Moody's has downgraded the
probability of default rating (PDR) to B2-PD from B1-PD. The
outlook on the ratings is negative.

"The rating downgrade has been driven by the company's ongoing
high financial leverage and weak liquidity profile. Despite some
deleveraging due to asset disposals and moderate earnings
improvements, we expect leverage to remain very high for the next
12-18 months at least." said Matthias Heck, a Moody's Vice
President - Senior Analyst and lead analyst for Astaldi.

RATINGS RATIONALE

"The downgrade primarily reflects the further delay of the
company's asset disposal program, which leaves execution risks in
place and financial leverage at high levels, well above our
expectations for the previous rating level. Moreover, the
liquidity situation of the company is currently weak, and the
company needs to re-negotiate the covenant schedule of its
revolving credit facility by the end of June to achieve a more
adequate liquidity headroom."

"On May 10, 2016, Astaldi announced the key elements of its new
2016-20 business plan, which focuses on sustainable growth and
strengthening of its financial structure. With regards to the
latter, the plan aims to gradually improve in revenues (7% CAGR
2016-20) and EBIT (5.5% CAGR, reflecting asset disposals) by
2020. The earnings expectations are, however, lower than the ones
included in the previous 2013-18 plan and mean slower de-
leveraging than we had expected so far."

As part of the 2016-20 plan, the company announced an asset
disposal program of EUR750 million by 2020, of which EUR450
million relate to the years 2016-18, and EUR300 million to 2019-
20. The program includes the gradual sale of nearly all of its
minority stakes in concession assets, located in Italy, Chile and
Turkey. As a first step, Astaldi announced the sale of its stake
in the A4 Highway in Italy for a disposal consideration of EUR130
million, of which EUR110 million will be cashed-in at closing
(expected for July 2016) through a non-recourse transfer.

The company already announced a plan to sell its concession
assets in November 2014 and initially aimed to divest a first
tranche of assets by end-2015, with the remainder following in
2016. Under the new plan, which aligns the timing of disposals
with the completion of the projects under construction, the
disposal of assets will be substantially delayed.

Without further proceeds from asset disposals applied to debt
reduction, Astaldi's financial leverage remains very high. On a
Moody's adjusted basis, Astaldi's gross debt / EBITDA stood at
8.0x as per December 2015. Assuming the positive impact of some
asset disposals in 2016 (including the A4 highway), marginal
operating improvements and the absence of negative one-offs in
2016 would still leave leverage at high levels of around 7.0x as
per end-2016 which positions the company weakly in the B2 rating
category. Therefore, the rating also incorporates the expectation
of the successful execution of the strategic plan which could
bring it down to around 6.0x in 2017, which would position the
company solidly in the B2 rating.

In 2018, an ongoing successful execution of the business plan
could bring leverage down to around 5.0x. Moody's notes, however,
that this would be largely driven by the sale of regulated assets
in Turkey, which is, in the rating agency's view, subject to high
execution risks. This reduction in leverage also assumes (1) a
steadily improving operating performance in the next three years
without any underperforming projects, and (2) positive free cash
flow generations, predominantly driven by increasing amounts of
prepayments for recently acquired orders.

Absent the short-term deleveraging effect of asset disposals,
Moody's expects that financial covenants within Astaldi's EUR500
million revolving credit facility will be breached at the
upcoming semi-annual test at end-June 2016. The rating agency
understands that Astaldi was in covenant compliance at end-2015.
For the upcoming semi-annual test, however, covenant levels will
become tighter, at 1.8x net financial indebtedness/equity and
3.4x net financial indebtedness/EBITDA. Astaldi's liquidity
situation therefore relies on the successful re-negotiation of
covenants with the banks. Moody's understands that negotiations
have already been initiated, and the rating agency has factored
in its analysis a positive outcome before the deadline.

RATIONALE FOR THE NEGATIVE OUTLOOK

The outlook on Astaldi's ratings remains negative, considering
that financial leverage is expected to remain high also for the
B2 rating in 2016-2017. It also reflects the currently weak
liquidity situation, as well as execution risks related to the
asset disposal program.

Moody's expects financial leverage to remain high for the B2
rating in 2016 and also in 2017, when the rating agency assumes
that asset disposals and operating improvements will bring down
leverage towards the high end of the guidance leverage ratio of
5.0x-6.0x debt/EBITDA (as adjusted by Moody's) for maintaining
the B2 rating.

The company's liquidity situation is currently weak, because of
the strong reliance on short-term uncommitted credit lines, and
the need to re-negotiate financial covenants of the existing
EUR500 million revolving credit facility by end-June. Expected
negative free cash flows also in 2016, combined with high intra-
year working capital fluctuations, especially in the first
quarter of the year, are further reasons for the weak liquidity
situation. Moody's notes that a successful re-negotiation of the
covenants could improve the liquidity situation to more adequate
levels.

Planned asset disposals are subject to high execution risks,
especially in terms of the sizeable concession assets in Turkey,
which are subject to particular regulatory and country risks.
However, planned disposals of Italian concession assets are also
subject to execution risks, as evidenced by the lengthy and
complex disposal process of the A4 highway.

WHAT COULD CHANGE THE RATING UP/DOWN

An upgrade over the next 12-18 months is unlikely. However, the
B2 ratings could be upgraded in the event of (1) further major
growth in order backlogs and revenue combined with greater
diversification across geographies and sectors; (2) sustainable
and meaningful improvement in operating margins and cash
generation, with particular regard to the generation of
meaningful positive free cash flows; (3) improved leverage, as
evidenced by a debt/EBITDA ratio (as adjusted by Moody's) falling
below 5.0x on a sustainable basis; (4) interest coverage measured
as EBIT/ interest expense (as adjusted by Moody's) exceeding
2.5x, and (5) improvements in the liquidity profile to adequate
levels.

The B2 ratings could be downgraded in the event of (1)
debt/EBITDA (as adjusted by Moody's) exceeding 6.0x on a
sustainable basis; (2) interest coverage measured as EBIT/
interest expense (as adjusted by Moody's) failing to remain above
1.5x; or (3) the inability to generate positive free cash flows
(as adjusted by Moody's) net of investments in and disposals of
concessions. Also, a further weakening of the company's short
term liquidity profile could result in a downgrade.


FIAT CHRYSLER: Moody's Raises CFR to Ba3; Outlook Stable
--------------------------------------------------------
Moody's Investors Service has upgraded to Ba3 from B1 the
corporate family rating and to Ba3-PD from B1-PD the probability
of default rating (PDR) assigned to Fiat Chrysler Automobiles
N.V.'s (FCA or the company).  The outlook on the ratings is
stable.

"Our decision to upgrade FCA's rating to Ba3 reflects continued
positive earnings growth in two of its core regions, NAFTA and
EMEA, mainly due to rising passenger car and SUV demand and the
success of key brands such as Jeep and Ram.  FCA's upgrade also
factors in anticipated improvements in the company's financial
profile in 2016, on the back of ongoing efforts to simplify its
capital structure and reduce debt", says Yasmina Serghini, a
Moody's Senior Credit Officer and lead analyst for FCA.

RATINGS RATIONALE

The upgrade of FCA's CFR to Ba3 reflects Moody's view that the
company's profitability will continue to move higher in the next
12 to 18 months, as it benefits from favorable market dynamics in
Western Europe.  Improving market conditions will improve FCA's
operating leverage in the region.

Moody's also expects that FCA's margins will rise in the North
American Free Trade Agreement (NAFTA) region helped by (1) the
steadily increasing demand for SUVs and trucks, fuelling Jeep and
Ram sales, together with (2) continued measures to enhance local
pricing power.  Moody's views the global roll out of the Jeep
brand as a cornerstone of FCA's strategy.  The roll out has
particularly helped the company improve its competitiveness in
the Far East and leverage its industrial base in Western Europe,
and has, over time, boosted its resilience in these regions.

FCA posted encouraging results for the first quarter ended 31
March 2016 as evidenced by a significant increase in EBIT (as
adjusted by the company) to nearly EUR1.4 billion from
EUR0.7 billion in the same period of 2015.  This was largely
driven by an increase in Adjusted EBIT in NAFTA together with
improving earnings trends in both EMEA and Latin America.
Moody's acknowledges that the company's operational performance
in Latin America has been resilient in recent months amidst very
weak industry conditions with a modest positive Adjusted EBIT in
the first quarter of 2016 of EUR11 million.

Moreover, following the elimination of the ring fencing at FCA US
LLC in March 2016 and the prepayment of USD2.0 billion of term
loan Bs, FCA has simplified its debt structure and has gained
unimpeded access to the cash and cash flows of its US subsidiary.
Moody's expects that FCA's enhanced cash and cash equivalents and
current securities balance (EUR18.4 billion as of 31 March 2016)
will help it pay down debt, which, in turn, will improve the
company's gross leverage metric.  By end-2016, Moody's
anticipates that FCA's Moody's-adjusted (gross) debt/EBITDA ratio
is likely to fall to 4.0x then 3.5x in 2017 from 5.2x at year-end
2015.  The company's leverage metric will reflect the conversion
into common stock in December 2016 of the mandatory convertible
securities, which Moody's currently treats as 100% debt.

Notwithstanding the above, Moody's cautions that FCA operates in
a highly competitive global automotive market that constrains
pricing power.  Moreover, its profitability outside of the NAFTA
market remains weak and some of the company's strategic
initiatives (e.g. revival of the Alfa brands) will take time to
bear fruits.  Industry conditions have also weakened in emerging
markets such as Latin America and China resulting in a large
margin compression for FCA, including earnings erosion at its
luxury brand Maserati, since the start of 2015.

Moody's also notes heightened regulatory scrutiny especially in
the areas of emissions reductions and safety.  This creates
additional costs and investments for automotive manufacturers in
general and may constitutes a source of potential earnings
volatility.  Moreover, Moody's expects that FCA will sustain a
high level of investments in the next 24 months with a peak in
2017, which will weigh on its free cash flow.

STRUCTURAL CONSIDERATIONS

On the basis of the unified capital structure following the
elimination of the ring fencing at FCA US LLC in March 2016,
Moody's has formally included FCA US LLC in its notching
considerations.  Moody's has considered the senior unsecured
notes issued by FCA and its treasury companies as structurally
subordinated to a significant portion of financial and non-
financial debt (including the USD2.8 billion worth of secured
term loan Bs at FCA US), located at the level of FCA's operating
subsidiaries largely consisting of trade payables.  Consequently,
the ratings of FCA's outstanding senior unsecured bonds is B1, or
one notch below the Ba3 CFR, according to Moody's Loss Given
Default Methodology, and the ratings assigned to FCA US's term
loan Bs are Baa3.

RATIONALE FOR A STABLE OUTLOOK

The stable outlook is based on Moody's expectation of a continued
improvement in FCA's margins and debt-protection ratios in the
next 12 months supported by a recovery in demand in Western
Europe, global roll out of the Jeep brand and debt reduction.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on FCA's rating could materialize if the company
were to successfully execute its strategy and build more
resilience in its business, resulting in gradually improving
profitability and cash flow generation.  An upgrade of FCA's
rating would also hinge on the company maintaining a financial
policy that balances both the interests of shareholders and
bondholders.

Quantitatively, an upgrade could occur if FCA were to deliver, on
a sustainable basis, (1) a Moody's-adjusted EBITA margin above
4%, (2) a positive free cash flow, (3) a Moody's-adjusted
EBITA/Interest Expense trending towards 2.0x and (4) a Moody's-
adjusted (gross) debt/EBITDA below 3.5x.

Moody's could downgrade FCA's ratings if (1) the company were to
lose significant market share in its key markets; (2) there is
evidence that its product renewal program for its key brands were
to stall; and (3) its operating performance were to deteriorate
with limited prospects for improvement within a reasonable
timeline as a result of, for example, prolonged weakness in Latin
America, a major source of profits and cash flows for the
company, which would more than offset further improvements in
other regions and at Maserati.

Inability to improve Moody's-adjusted EBITA margin towards 4%
over time, to reduce Moody's-adjusted (gross) debt/EBITDA towards
3.5x and increase Moody's-adjusted EBITA/Interest Expense towards
1.7x could cause downward pressure on the rating.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global
Automobile Manufacturer Industry published in June 2011.

Fiat Chrysler Automobiles N.V. has its corporate seat in
Amsterdam, the Netherlands, with principal executive office in
the United Kingdom.  FCA owns 100% of FCA US LLC (previously
Chrysler Group LLC) and is one of the largest automotive
manufacturers by unit sales.  FCA common shares are listed on the
New York Stock Exchange and on the Mercato Telematico Azionario
(MTA) in Italy.

LIST OF AFFECTED RATINGS

Upgrades:

Issuer: Fiat Chrysler Automobiles N.V.
  Corporate Family Rating, Upgraded to Ba3 from B1
  Probability of Default Rating, Upgraded to Ba3-PD from B1-PD
  Senior Unsecured Medium-Term Note Program, Upgraded to (P)B1
   from (P)B2
  Senior Unsecured Regular Bond/Debenture, Upgraded to B1 from B2

Issuer: Fiat Chrysler Finance Canada Ltd
  Backed Senior Unsecured Medium-Term Note Program, Upgraded to
   (P)B1 from (P)B2

Issuer: Fiat Chrysler Finance Europe SA
  Backed Senior Unsecured Medium-Term Note Program, Upgraded to
   (P)B1 from (P)B2
  Backed Senior Unsecured Regular Bond/Debenture, Upgraded to B1
   from B2

Issuer: Fiat Chrysler Finance North America Inc.
  Backed Senior Unsecured Medium-Term Note Program, Upgraded to
   (P)B1 from (P)B2
  Backed Senior Unsecured Regular Bond/Debenture, Upgraded to B1
   from B2

Issuer: FCA US LLC
  Senior Secured Bank Credit Facility, Upgraded to Baa3 from Ba1

Affirmations:

Issuer: Fiat Chrysler Automobiles N.V.
  Senior Unsecured Medium-Term Note Program (Local Currency),
   Affirmed (P)NP

Issuer: Fiat Chrysler Finance Europe SA
  Backed Senior Unsecured Medium-Term Note Program (Local
   Currency), Affirmed (P)NP

Issuer: Fiat Chrysler Finance North America Inc.
  Backed Senior Unsecured Medium-Term Note Program (Foreign
   Currency), Affirmed (P)NP

Withdrawals:

Issuer: FCA US LLC
  Senior Secured Bank Credit Facility, Withdrawn , previously
   rated Ba1

Outlook Actions:

Issuer: Fiat Chrysler Automobiles N.V.
  Outlook, Changed To Stable From Positive

Issuer: Fiat Chrysler Finance Canada Ltd
  Outlook, Changed To Stable From Positive

Issuer: Fiat Chrysler Finance Europe SA
  Outlook, Changed To Stable From Positive

Issuer: Fiat Chrysler Finance North America Inc.
  Outlook, Changed To Stable From Positive

Issuer: FCA US LLC
  Outlook, Changed To Stable From Positive


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


BANK CENTERCREDIT: Moody's Repositions NSR to Ba2.kz
----------------------------------------------------
Moody's Investors Service repositioned the national scale ratings
(NSRs) of Kaspi Bank JSC, Bank CenterCredit and Fund of Financial
Support for Agriculture in conjunction with the recalibration of
the Kazakh national rating scale.

NSRs, which provide a measure of relative creditworthiness within
a single country, are derived from global scale ratings (GSRs)
using country-specific maps. The adoption of a revised
correspondence between Moody's GSRs and the Kazakh national scale
follows the publication of Moody's updated methodology "Mapping
National Scale Ratings from Global Scale Ratings".

With approximately 25 fundamental issuers in Kazakhstan rated by
Moody's, the new map has been designed using the standard
approach, whereby the map design is selected from a set of
standard maps based upon the anchor point, or the lowest GSR that
can map to a Aaa.kz. Per the standard approach, Kazakhstan's
anchor point is being lowered to Baa3, which is equal to the
sovereign bond rating, from the previous level of Baa1. All GSRs
from Baa3 to Caa2 will map to two ratings on the national scale.
As a result of these changes, GSRs of Caa2 and above will
correspond to higher NSRs on the Kazakh scale than they did
previously.

Consequently, primary long-term NSRs of three Kazakh financial
institutions are being repositioned an average of 2.3 notches
higher. The repositioned NSRs of individual financial
institutions do not signify a change in credit risk, since the
GSRs for these issuers remain unchanged.

As a result of the recalibration, the level of risk associated
with a particular Kazakh NSR level (e.g. Baa2.kz) has changed in
many cases. NSRs have no inherent absolute meaning in terms of
default risk or expected loss; they are ordinal rankings of
creditworthiness relative to other domestic issuers within a
given country. A historical probability of default and/or
expected loss consistent with a given NSR can be inferred from
the GSR to which it maps back at that particular point in time.
However, both the probability of default and the expected loss of
an NSR may change if and when a country's national scale is
remapped.

FINANCIAL INSTITUTIONS AND RATINGS AFFECTED

Issuer: Kaspi Bank JSC

NSR LT Bank Deposit rating repositioned to Baa3.kz from Ba3.kz

Issuer: Bank CenterCredit

NSR LT Bank Deposit rating repositioned to Ba2.kz from B1.kz

Issuer: Fund of Financial Support for Agriculture

NSR LT Issuer rating repositioned to A2.kz from Baa1.kz

RATINGS RATIONALE

NSRs are assigned by applying the published correspondence from
GSRs. Where a single GSR maps to multiple NSRs, rating committees
assigned higher or lower NSRs to individual issuers and debts
depending on their relative credit position within the same GSR
category, using the same methodologies as were used to determine
the GSRs themselves.

WHAT COULD CHANGE THE RATINGS -- UP AND DOWN

The NSRs would face upward or downward pressure if their
corresponding GSRs are upgraded or downgraded, unless this is in
conjunction with a sovereign rating action that results in
another recalibration of the Kazakh national scale with an
offsetting impact on NSRs. In addition, the NSRs may be
repositioned upwards (downwards) if Kazakhstan's sovereign is
downgraded (upgraded) and the map is revised accordingly, but the
corresponding GSRs have not changed as a result of the sovereign
action. Because of the higher granularity of national scales,
NSRs may also face pressure due to changes in creditworthiness
that are not sufficient to cause a change in the corresponding
GSR, measured using the same methodologies used to determine the
GSR.


EASTCOMTRANS LLP: Moody's Repositions NSR to B1.kz
---------------------------------------------------
Moody's Investors Service has repositioned the national scale
rating (NSR) of Eastcomtrans LLP (ECT, corporate family rating
(CFR) B3 negative) to B1.kz from B3.kz in conjunction with the
recalibration of the Kazakh national rating scale. Concurrently,
Moody's has assigned negative outlook to the rating.

NSRs, which provide a measure of relative creditworthiness within
a single country, are derived from global scale ratings (GSRs)
using country-specific maps. The adoption of a revised
correspondence between Moody's GSRs and the Kazakh national scale
follows the publication of Moody's updated methodology "Mapping
National Scale Ratings from Global Scale Ratings".

With approximately 25 fundamental issuers in Kazakhstan rated by
Moody's, the new map has been designed using the standard
approach, whereby the map design is selected from a set of
standard maps based upon the anchor point, or the lowest GSR that
can map to a Aaa.kz. Per the standard approach, Kazakhstan's
anchor point is being lowered to Baa3, which is equal to the
sovereign bond rating, from the previous level of Baa1. All GSRs
from Baa3 to Caa2 will map to two ratings on the national scale.
As a result of these changes, GSRs of Caa2 and above will
correspond to higher NSRs on the Kazakh scale than they did
previously. Consequently, most Kazakh issuer's primary long-term
NSRs are being repositioned 2 to 3 notches higher. Certain other
NSRs may be affected for these and other issuers as well. The
repositioned NSRs of individual issuers do not signify a change
in credit risk, since the GSRs for these issuers remain
unchanged.

As a result of the recalibration, the level of risk associated
with a particular Kazakh NSR level has changed in many cases.
NSRs have no inherent absolute meaning in terms of default risk
or expected loss; they are ordinal rankings of creditworthiness
relative to other domestic issuers within a given country. A
historical probability of default and/or expected loss consistent
with a given NSR can be inferred from the GSR to which it maps
back at that particular point in time. However, both the
probability of default and the expected loss of an NSR may change
if and when a country's national scale is remapped.

RATINGS RATIONALE

NSRs are assigned by applying the published correspondence from
GSRs. Where a single GSR maps to multiple NSRs, rating committees
assigned higher or lower NSRs to individual issuers and debts
depending on their relative credit position within the same GSR
category, using the same methodologies as were used to determine
the GSRs themselves.

Moody's maps ECT to the lower border of the Ba3-B1 NSR map range
available for the B3 CFR on the global scale to reflect the
negative outlook on the company's GSR. Moody's notes, that
although the company remains adequately positioned at the B3
rating category, there is potential for further deterioration of
ECT's financial metrics and liquidity beyond Moody's current
projections as a result of unfavorable market developments and
the Kazakhstani tenge devaluation. This could trigger continuous
covenant resetting processes, an increase in debt service, and a
further weakening in the credit profile.

ECT's B3 corporate family rating takes into account (1) increased
uncertainty regarding ECT's fleet utilization rates and revenue
generation in the next 12-18 months, given the weakening
operating environment in Kazakhstan; (2) elevated remarketing
risk as customers seek more flexibility under existing and new
contracts; (3) expected pressure on margins resulting from the
renegotiation of ECT's US dollar-denominated lease rates; (4)
ECT's exposure to foreign-currency risk, as most of its debt is
US-dollar denominated; (5) weak liquidity, caused by a breach of
the tangible net worth covenant under ECT's debt facilities. The
latter was triggered by the devaluation of the local currency. In
addition, ECT is experiencing materially reduced leeway under
leverage and coverage covenants, which might trigger a further
breach in the short term.

However, these negatives are partially offset by (1) ECT's
relatively high fleet utilization rates, although these declined
in 2015; (2) the company's high fleet diversification, with oil
and gas tank cars accounting for 66% of the fleet, gondola cars
for 23% and other types for 11% as of end-2015; (3) the company's
solid market positioning; (4) its modern railcar fleet, with an
average age of six years, compared with the estimated industry
average of above 15 years, which provides savings in terms of
repair costs; (5) its high EBITDA margin and adequate projected
financial metrics for the current rating category; and (6) the
high book value of ECT's pledged railcar fleet, at around $370
million as of end-September 2015, versus net debt of
approximately $226 million as of end-2015.

RATIONALE FOR THE NEGATIVE OUTLOOK

Moody's has assigned the negative outlook to ECT's NSR to
indicate, that a downgrade of the company's CFR by one notch to
Caa1 would result in a downgrade of the NSR to B2.kz, according
to the current NSR mapping.

WHAT COULD CHANGE RATINGS UP/DOWN

The NSRs would face upward or downward pressure if their
corresponding GSRs are upgraded or downgraded, unless this is in
conjunction with a sovereign rating action that results in
another recalibration of the Kazakh national scale with an
offsetting impact on NSRs. In addition, the NSRs may be
repositioned upwards (downwards) if Kazakhstan's sovereign is
downgraded (upgraded) and the map is revised accordingly, but the
corresponding GSRs have not changed as a result of the sovereign
action. Because of the higher granularity of national scales,
NSRs may also face pressure due to changes in creditworthiness
that are not sufficient to cause a change in the corresponding
GSR, measured using the same methodologies used to determine the
GSR.


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


CNH INDUSTRIAL: S&P Assigns BB+ Rating to Sr. Unsecured Notes
-------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating and '4'
recovery rating to Luxembourg-based CNH Industrial Finance Europe
S.A.'s proposed senior unsecured notes.  The '4' recovery rating
indicates S&P's expectation for average (30%-50%; upper half of
the range) recovery in the event of a payment default scenario.

CNH Industrial Finance Europe S.A. is a subsidiary of
Netherlands-based CNH Industrial N.V. (CNHI), which will act as
the guarantor for the notes.  The company expects to use the
proceeds from this issuance for general corporate purposes.

All of S&P's other ratings on CNHI remain unchanged.

"We believe that the company will maintain its position as the
second-largest agricultural equipment manufacturer globally and
remain a well-established global player in the truck,
construction equipment, and powertrain markets.  In our view, the
ability of CNHI's captive finance subsidiaries to offer seamless
financing to the company's customers strengthens its competitive
advantage compared with its peers who do not have similar
operations.  These factors are tempered by the highly competitive
and cyclical individual markets that the company participates in,
its moderately high fixed costs, and its high working-capital
intensity.  We forecast that CNHI will maintain a leverage metric
of less than 4x through the current downturn in the agricultural
equipment market," S&P said.

RATINGS LIST

CNH Industrial N.V.
Corporate Credit Rating                BB+/Stable/B

New Ratings

CNH Industrial Finance Europe S.A.
Proposed Senior Unsecured Notes        BB+
  Recovery Rating                       4H


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


* NETHERLANDS: Company Bankruptcies Down in April 2016
------------------------------------------------------
DutchNews.nl, citing preliminary data published by the national
statistics office CBS, reports that the number of companies
declared bankrupt in the Netherlands fell again in April.

In total, 355 businesses went bust last month, fifteen fewer than
in March, DutchNews.nl relates.  The number of new bankruptcies
peaked at 816 in May 2013 and has followed a broadly downward but
fluctuating trend since then, DutchNews.nl notes.

The general trade sector was hardest hit in April, with 73
businesses going bust, DutchNews.nl discloses.  Financial
institutions followed with 60 bankruptcies, DutchNews.nl relays.


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


LOCK LOWER: Moody's Puts B2 CFR on Review for Downgrade
-------------------------------------------------------
Moody's Investor Service has placed on review for downgrade the
B2 corporate family rating assigned to Lock Lower Holding AS, the
parent company of Lindorff AB.  The agency also placed on review
for downgrade the B2 rating assigned to the three senior secured
notes totaling EUR1.5 billion and the B1 rating assigned to the
EUR430 million revolving credit facility (RCF) issued by Lock AS,
a subsidiary of Lock Lower Holding AS.  Finally, Moody's placed
on review for downgrade the Caa1 rating assigned to the two
senior notes of a combined amount of EUR451 million issued by
Lock Lower Holding AS.

The rating action was prompted by Lindorff's announcement of an
agreement to acquire a stake of up to 94% in Aktua Soluciones
Financieras Holdings, S.L. (Aktua - unrated), a company
specialized in servicing secured non-performing loans and
offering real-estate-owned services, which cover all the services
in the real estate value chain (asset & property management and
sales & marketing).  The acquisition is expected to complete in
the second quarter of 2016.  Moody's expects to conclude its
review no earlier than Aug. 19, 2016, when Lindorff plans to
release its second quarter financial statements.

RATINGS RATIONALE

Moody's understands that the acquisition of the stake in Aktua
will be funded through an equity injection by Lindorff and a
EUR30 million payment-in-kind loan, while the Spanish company
will roll-over its existing credit facilities, which added up to
EUR195 million as of end-2015.  Aktua and its subsidiaries will
be classified as unrestricted subsidiaries pursuant to the
indentures governing the outstanding notes and RCF issued by Lock
AS and Lock Lower Holding AS.

The review will focus on Lindorff's solvency and leverage ratios,
and how they will be affected by the transaction, as well as the
potential benefits and challenges of the merger for its business
model.  The review will focus on the extent to which these
factors remain compatible with a B2 CFR.

Following a number of acquisitions over the last few years and
the associated goodwill, Lindorff's solvency ratio, calculated as
Tangible Common Equity over Tangible Managed Assets, is negative,
albeit on an improving trend.  The acquisition of Aktua will
potentially weaken this measure of solvency once again, and in
its review, Moody's will determine whether any deterioration is
likely to be temporary or more durable in nature.

According to Lindorff, the acquisition of Aktua should improve
the group's net leverage, with the Spanish company refinancing
its existing facilities.  However the agency notes that Lindorff
has the highest debt leverage ratio, calculated as gross debt
over EBITA, among the debt purchasing companies it rates,
totaling6.3x at end-2015.  Moody's will therefore assess the
impact of the transaction on the company's financial position and
its potential consequences on debt service capacity should
Lindoff decide to include Aktua and its subsidiaries in its
restricted group.

Finally, Moody's notes that, although similar, Lindorff and Aktua
operate in different businesses.  While the agency will take into
account the benefits of increased geographical and product
diversification for Lindorff's business model, it will also
consider the integration, management and governance risks that
may arise from the merger.

WHAT COULD CHANGE THE RATINGS UP/DOWN

As indicated by the review for downgrade, an upgrade of
Lindorff's CFR is currently unlikely given its current leverage
metrics and acquisitive strategy.  However, Lindorff's ratings
could be upgraded as a result of the following elements: (i) a
significant reduction in the company's level of leverage with
debt-to-adjusted EBITDA falling below 4x; (ii) a sustained track
record of increasing gross collections while maintaining a low
level of complaints and legal actions, especially in new markets,
and; (iii) an improved liquidity profile with additional headroom
and a track record of moderate use of bank facilities.

Lindorff's CFR could be affirmed at the current level if: (i) as
result of the acquisition, the company's leverage would not go
above 6.5x; (ii) the interest coverage ratio would not go below
1.5x; (iii) the solvency ratio would not go beyond -70% ; and
(iv) the group's management demonstrates that a clear governance
and risk management framework is in place to manage Aktua's
business.

The company's ratings could be downgraded because of: (i) a
significant deterioration in income (after interest expense) and
cash flow from operations, due to (for example) weak collections
or underperforming portfolio acquisitions; (ii) an increase in
leverage or sustained decline in operating performance, leading
to a debt-to-adjusted EBITDA ratio well above 5.5x for a
prolonged period; or (iii) a significant decline in interest
coverage, with an adjusted EBITDA-to-interest expense ratio below
1.0x.

PRINCIPAL METHODOLOGY

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

LIST OF AFFECTED RATINGS

On Review for Downgrade:

Issuer: Lock Lower Holdings AS
  LT Corporate Family Rating, Placed on Review for Downgrade,
   currently B2 Rating Under Review
  Senior Unsecured Regular Bond/Debenture, Placed on Review for
   Downgrade, currently Caa1 Rating Under Review

Issuer: Lock AS
  Senior Secured Bank Credit Facility, Placed on Review for
   Downgrade, currently B1 Rating Under Review
  Senior Secured Regular Bond/Debenture, Placed on Review for
   Downgrade, currently B2 Rating Under Review

Outlook Actions:

Issuer: Lock AS
  Outlook, Changed To Rating Under Review From Stable

Issuer: Lock Lower Holdings AS
  Outlook, Changed To Rating Under Review From Stable



===========
P O L A N D
===========


SKOK ARKA: Financial Market Regulator Files Bankruptcy Motion
-------------------------------------------------------------
WSEInfoSpace reports that Poland's financial market regulator KNF
said in a statement it filed a motion for bankruptcy of SKOK Arka
S&L with nearly PLN100 million in client deposits, a trigger for
payouts of guaranteed deposits to SKOK Arka clients by Poland's
banking guarantee fund BFG.

The statement said the bankruptcy motion was filed as the KK SKOK
S&L institutions association refused to grant aid to SKOK Arka
and no bank expressed interest in taking over SKOK Arka,
WSEInfoSpace relates.

According to WSEInfoSpace, KNF said SKOK Arka had negative equity
of PLN21.8 million as at late August 2015 and a negative adequacy
ratio of 22.7%.

SKOK Arka S&L is a Polish savings & loan institution.



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


ASIAN-PACIFIC BANK: Moody's Withdraws B3 LT LC Deposit Rating
-------------------------------------------------------------
Moody's Investors Service has withdrawn Asian-Pacific Bank's
following ratings:

-- Long-term local-currency deposit rating of B3

-- Long-term foreign-currency deposit rating of B3

-- Short-term local and foreign-currency deposit ratings of Not-
    Prime

-- Long-term Counterparty Risk Assessment of B2(cr)

-- Short-term Counterparty Risk Assessment of Not-Prime(cr)

-- Baseline credit assessment (BCA) of b3

-- Adjusted Baseline Credit Assessment of b3

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

RATINGS RATIONALE

Moody's has withdrawn the rating for its own business reasons.
Please refer to the Moody's Investors Service's Policy for
Withdrawal of Credit Ratings, available on its website,
www.moodys.com.

Headquartered in Blagoveshchensk, Russia, Asian-Pacific Bank
reported total assets of RUB143.1 billion, total shareholders'
equity of RUB15.9 billion and net loss of RUB1.6 billion,
according to audited IFRS report as of year-end 2015.


OTP BANK: Moody's Withdraws Ba3/Not-Prime Deposit Ratings
---------------------------------------------------------
Moody's Investors Service withdrawn the Ba3/Not-Prime local and
foreign-currency deposit ratings, b2/ba3 baseline credit
assessment (BCA)/Adjusted BCA and the Ba2(cr)/Not-Prime(cr)
Counterparty Risk Assessments of OTP Bank (Russia), OJSC, based
in Russia (Ba1 negative). At the time of the withdrawal the
bank's long-term deposit ratings carried a negative outlook.

RATINGS RATIONALE

Moody's has withdrawn ratings for its own business reasons.
Please refer to the Moody's Investors Service's Policy for
Withdrawal of Credit Ratings, available on its website,
www.moodys.com.

Headquartered in Moscow, Russia, OTP Bank (Russia), OJSC reported
total assets of RUB128 billion and total equity of RUB21 billion
under audited IFRS as of January 1, 2016.


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


UNILABS MIDHOLDING: Moody's Changes Outlook on B3 CFR to Stable
---------------------------------------------------------------
Moody's Investors Service has changed to stable from negative the
outlook on the B3 corporate family rating (CFR) and B3-PD
probability of default rating (PDR) of Unilabs Midholding AB
(Unilabs), one of Europe's leading providers of clinical
laboratory testing and medical diagnostic imaging services.
Concurrently, the rating agency affirmed the CFR, PDR and the
Caa2 (LGD5) rating of the EUR200 million PIK Toggle notes due 15
Jan 2019, issued by Unilabs Midholding AB.

The outlook change and affirmation of the CFR reflect the
following drivers:

-- its recent robust performance on the back of organic revenue
    growth and cost-cutting

-- improved leverage below the downgrade trigger of 7.0x

Moody's has also upgraded to B2 (LGD3) from B3 (LGD3) the ratings
of the EUR355 million senior secured fixed rate notes due 15 Jul
2018 and the EUR130 million senior secured floating rate notes
due 15 Jul 2018, both issued by Unilabs Subholding AB. The
outlook is stable.

RATINGS RATIONALE

-- OUTLOOK CHANGE TO STABLE

The outlook change to stable reflect Unilabs' strong recent
performance, driven by organic growth and successful
implementation of cost efficiencies. It also takes account of
notable improvements in Unilabs' leverage (as measured by Moody's
adjusted gross debt-to-EBITDA ) to 6.7x as of the 12-month period
through 31 March 2016 from 8.3x in 2014, which is below the
potential downgrade trigger of 7.0x.

"While Unilabs' operating performance has improved over the past
quarters, its high leverage continues to pressure its credit
profile. Over the next 12-18 months, we expect that the company's
leverage will remain around 6.8x, constrained by accruing
interest on its PIK Toggle notes," says Andrey Bekasov, a Moody's
AVP -- Analyst and lead analyst for Unilabs.

In 2016-17, Moody's expects that Unilabs' revenues will grow
organically in the low single-digit percentage range because of
moderated volumes and likely tariff cuts. In the previous year,
Unilabs achieved record revenues and reported EBITDA. Revenues
increased by 9.8% to EUR672.6, of which 5.5% was organic growth,
because of healthy volumes in the Laboratory (+EUR30 million) and
Imaging (+EUR5.6 million) segments while tariff cuts had only a
small negative (-EUR1.8 million) impact. Finally, acquisitions
added EUR8.9 million and favourable foreign exchange effects
added EUR17.6 million to total revenues.

Moody's expects that Unilabs will improve its adjusted EBITDA
margin (as adjusted by Moody's, with operating lease expenses of
around EUR24 million added back) to around 21% over the next 12-
18 months, mainly on the back of continued cost efficiencies.
Moody's understands and reflects positively in the rating
Unilabs' plans to deliver additional savings of more than EUR15
million by end-2016.

In 2015, reported EBITDA increased by 23.2% to EUR114.8 million
from EUR93.2 million in 2014 mainly because of cost reduction
measures. Unilabs generated cost savings of EUR16 million in 2015
versus a plan of EUR12 million. As a result, Moody's adjusted
EBITDA margin reached 20.4% in 2015 (up from 17.6% in 2014).

Moody's expects that Unilabs will generate positive free cash
flows before acquisitions this year. Unilabs has indicated that
it intends to close a few mid-size acquisitions in 2016, which
Moody's expects will be mostly funded with available cash and
internally generated funds.

In 2015, Unilabs completed four acquisitions with pro forma sales
of EUR12 million. Acquisitions were modest in size and number
compared with prior years which highlights management focus on
the integration of previously acquired laboratories. However,
Moody's notes that consolidation in the industry accelerated in
2015 and will continue this year pushing high valuation
multiples.

-- UPGRADE OF SENIOR SECURED NOTES TO B2

The upgrade of the senior secured notes to B2 reflects the
increased equity cushion provided by the PIK Toggle notes (Caa2)
whose amount will continue to grow through the accrual of
interest at a high rate of 13% annually. Hence, under Moody's
Loss Given Default methodology, the secured notes are rated one
notch above the CFR and the PIK Toggle notes two notches below.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's expectation that Unilabs'
leverage, as measured by Moody's adjusted gross debt-to-EBITDA,
will remain around 6.8x within the next 12-18 months and that
operating performance will continue to follow a positive
trajectory. The stable outlook does not incorporate significant
debt-financed acquisitions.

WHAT COULD CHANGE THE RATING UP/DOWN

An upgrade to B2 is unlikely within the next 12-18 months.
However, positive pressure could develop if Unilabs were to
decrease leverage sustainably below 6.0x.

Conversely, negative rating pressure could develop if Unilabs'
leverage were to move above 7.0x for a prolonged period and/or
its liquidity profile were to deteriorate including failure to
refinance upcoming debt maturities well ahead of time.


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


EXPORT CREDIT: S&P Affirms BB+/B FC Ratings; Outlook Stable
-----------------------------------------------------------
S&P Global Ratings said that it revised its outlook on Export
Credit Bank of Turkey (Turk Eximbank) to stable from negative.
At the same time, S&P affirmed its 'BB+/B' long- and short-term
foreign currency ratings.  S&P also affirmed its 'BBB-/A-3' long-
and short-term local currency credit ratings.

S&P equalizes the ratings on Turk Eximbank with those on its sole
owner, the Republic of Turkey.  The ratings reflect S&P's opinion
that there is an almost certain likelihood that the Turkish
government would provide timely and sufficient extraordinary
support to Turk Eximbank in case of financial distress.  In
accordance with S&P's criteria for government-related entities
(GREs), its rating approach for Turk Eximbank is based on S&P's
view of the bank's:

   -- Critical role in supporting Turkish exports, which is a key
      focus of national economic development; and

   -- Integral link with the Turkish government through the
      sovereign's sole ownership, government control of the board
      of directors, and the sovereign's guarantee on the ultimate
      recovery of losses on loans extended by the bank.

Turk Eximbank is the official state export credit agency.  Its
mandate is to support foreign trade and Turkish contractors and
investors operating abroad, through credit, guarantee, and
insurance programs.  The bank does not compete against commercial
banks, but works closely with them, encouraging them to increase
their support for the export sector.  As well as offering direct
lending, the bank also provides insurance and guarantees to
Turkish exporters.

Outstanding loans extended by Turk Eximbank have increased by
nearly 5x since 2011 to reach Turkish lira (TRY) 43.3 billion
(US$14.8 billion) in 2015.  Over the same period, total assets
increased to 9.3x of total equity from 2.6x.  Turk Eximbank's
direct and indirect exposure to the Turkish banking sector is
substantial.  As of end-December 2015, about 12.2% of the bank's
loans were to financial institutions and the rest were guaranteed
by banks.  A deterioration of the Turkish banking sector could
weigh on Turk Eximbank's financial performance, in S&P's opinion.

Various bodies govern Turk Eximbank.  The highest ranked is the
Supreme Advisory And Credit Guidance Committee, which is chaired
by the state minister in charge of the bank's activities
(currently the deputy prime minister).  The committee is the main
decision-making authority for developing the bank's strategy, and
sets limits for credit, guarantees, and insurance transactions.
The state minister in charge of the bank's activities selects the
board of directors.  The bank's general manager is named by
decree, signed by the minister in charge of the bank's
activities, the prime minister, and the Turkish president.

In S&P's opinion, the government has demonstrated its strong
support for Turk Eximbank through its repeated capital
contributions to the bank's equity base.

These have been either directly paid-in capital or retained
earnings that are managed by the bank and incorporated into its
total shareholder funds.  Furthermore, losses incurred by Turk
Eximbank due to political risk under its credit, guarantee, and
insurance programs are covered by the Turkish treasury.

As a 100% state-owned, wholesale bank, Turk Eximbank does not
accept deposits.

Funding from the Central Bank of the Republic of Turkey finances
most of Turk Eximbank's operations; the remaining funding comes
from market debt issuance, syndicated and bilateral loans, and
loans from supranationals.  Funding from the Central Bank is only
in foreign currency.  However, for rediscount facilities extended
to exporters, Turk Eximbank borrows the foreign currency
equivalent in Turkish lira from the Central Bank and repays these
loans in foreign currency, thereby contributing to the
accumulation of the country's foreign reserves.

S&P do not anticipate any changes to Turk Eximbank's underlying
role for the national economy or in its close links with the
Turkish state.

The stable outlook on Turk Eximbank mirrors that on the Republic
of Turkey.  Any change to the ratings on Turkey will likely
result in a similar rating action on Turk Eximbank.  Conversely,
any change in S&P's assessment of Turk Eximbank's critical role
for or integral link with the government could lead S&P to
consider lowering the ratings on Turk Eximbank below those on
Turkey.


YAPI VE KREDI: S&P Affirms BB+ Credit Rating; Outlook Stable
------------------------------------------------------------
S&P Global Ratings said that it revised its outlook to stable
from negative on three Turkish financial institutions: Yapi ve
Kredi Bankasi (Yapi Kredi), Turkiye Garanti Bankasi
(Garantibank), and Garantibank's core subsidiary, Garanti
Finansal Kiralama A.S. (Garanti Leasing).

At the same time, S&P affirmed the 'BB+' long-term counterparty
credit ratings on all three entities and the 'B' short-term
ratings on Yapi Kredi and Garanti Leasing.

S&P also affirmed the 'trAA+/trA-1' long- and short-term Turkey
national scale ratings on Yapi Kredi.

S&P's ratings and outlooks on all other rated Turkish financial
institutions remain unchanged.

The outlook revision follows a similar action on the Republic of
Turkey (foreign currency rating: BB+/Stable/B; local currency:
BBB-/Stable/A-3; Turkey unsolicited national scale ratings:
trAAA/trA-1).  S&P revised the outlook on the Turkish sovereign
to reflect 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.

Despite S&P's revision of the outlook on Turkey to stable, S&P
still believes operating conditions remain challenging for
Turkish banks, as credit risks remain elevated and the banking
system remains reliant on external funding.  Yapi Kredi and
Garantibank are majority owned and controlled by foreign groups
that are rated above S&P's foreign currency sovereign ratings on
Turkey.  In a scenario where the stand-alone credit profiles
(SACPs) of these two banks were to worsen as a result of
deteriorating operating conditions in Turkey, S&P expects the
foreign shareholders to provide group support to these two banks,
mitigating the impact on their ratings.  The outlook revision on
Garanti Leasing is due to its core status to Garantibank.

                  GARANTIBANK AND GARANTI LEASING

S&P considers that Garantibank has moderate strategic importance
to its majority and controlling owner Spain-based Banco Bilbao
Vizcaya Argentaria S.A. (BBVA; BBB+/Stable/A-2) under S&P's group
rating methodology.  Currently, its group status does not result
in any uplift to the ratings on the bank, as S&P's assessment of
the bank's 'bb+' SACP is at the same level as the foreign
currency rating on the sovereign.  Yet, should we take a more
negative view on the Turkish banking system, resulting in a lower
anchor (S&P's starting point in assigning an issuer credit
rating) for Turkish banks, S&P's ratings on Garantibank and its
related entity Garanti Leasing would remain the same, as S&P
would start to add a one-notch uplift to reflect the expected
support from BBVA in case of need.

                            YAPI KREDI

S&P views Yapi Kredi as strategically important to its ultimate
parent UniCredit Bank Austria (UniCredit; BBB/Negative/A-2),
which jointly owns and controls Yapi Kredi together with Koc
Holding (BBB-/Positive/A-3).  Currently, Yapi Kredi's group
status does not result in any uplift to the ratings on the bank,
as S&P's assessment of its 'bb+' SACP is at the same level with
its foreign currency ratings on the sovereign.  Yet, should S&P
take a more negative view on the Turkish banking system, which
could result in a lower anchor and in turn a lower SACP for Yapi
Kredi, S&P's ratings on the bank would remain the same as it
would start to add some uplift to reflect the expected support
from UniCredit in case of need.

The stable outlook on these three entities reflects that S&P
anticipates their foreign owners to provide support, which
mitigates potential downside risks to their SACP stemming from
elevated credit or funding risks in Turkey.  Therefore, S&P
expects its ratings on these institutions to remain at 'BB+' over
the next 12 months.

Although S&P views it as unlikely at this stage, a positive
rating action on Yapi Kredi would occur if S&P was to raise its
ratings on Turkey, all else being equal.  Similarly, a negative
rating action on Turkey would result in a negative rating action
on the bank.

A positive rating action on Garanti Bankasi and its related
entity Garanti Finansal Kiralama A.S., although unlikely at this
stage, would occur if S&P was to raise its ratings on Turkey, all
else being equal.  Similarly, a negative rating action on Turkey
would result in a negative rating action on the bank.


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


BHS GROUP: Green Balks at Pension Regulator's Claims on Sale
------------------------------------------------------------
Mark Vandevelde at the Financial Times reports that Sir Philip
Green's Arcadia Group has rebuked a pensions regulator who told
MPs she found out about the sale of BHS "from the newspapers",
claiming the evidence she gave to a parliamentary committee this
week was "incorrect".

BHS collapsed into administration late last month with a pension
deficit of GBP571 million, little more than a year after it was
sold by Arcadia for GBP1, the FT recounts.

Its failure triggered an investigation by the Pensions Regulator
into whether it can force Sir Philip or Arcadia to contribute to
the cost of rescuing BHS pensioners, the FT states.

According to the FT, in a letter to the work and pensions
committee, Arcadia said Sir Philip had met regulators one week
before the sale of BHS and discussed details of the transaction
including the GBP1 price.

The company's account appeared to conflict with evidence given by
Lesley Titcomb, chief executive of the Pensions Regulator, to the
committee on May 9, the FT notes.

In its letter Arcadia, as cited by the FT, said the regulator was
notified by email in February 2015 that "a decision had been
taken to market the BHS business with a view to obtaining a
solvent disposal".

According to the FT, at a meeting with Sir Philip the following
month, the regulator was "informed of key terms of the proposed
sale of BHS", including how much equity would be injected, debt
written off and the position of the pension schemes.  The letter
said the "sale consideration of GBP1 was expressly referred to",
the FT relays.

Specifically, on the pension scheme it said "Sir Philip expressed
his strong wish to agree a sustainable solution and there was a
discussion as to the possibility of implementing a restructuring
with the approval of TPR", the FT relates.

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


SMALL BUSINESS 2016-1: Moody's Assigns Ba1 Rating to Cl. D Notes
----------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to four
classes of notes issued by Small Business Origination Loan Trust
2016-1 DAC:

  GBP87,800,000 Class A Floating Rate Asset-Backed Notes due
   December 2024, Definitive rating assigned Aa3 (sf)
  GBP6,100,000 Class B Floating Rate Asset-Backed Notes due
   December 2024, Definitive rating assigned A2 (sf)
  GBP7,800,000 Class C Floating Rate Asset-Backed Notes due
   December 2024, Definitive rating assigned Baa2 (sf)
  GBP6,300,000 Class D Floating Rate Asset-Backed Notes due
   December 2024, Definitive rating assigned Ba1 (sf)

Moody's has not assigned ratings to GBP14,700,000 Class E and
GBP6,500,000 Class Z also issued in the transaction.

SBOLT 2016-1 DAC is the First European marketplace lending
securitization backed by GBP129,201,684.96 loans originated and
serviced through Funding Circle Limited online marketplace
lending platform granted to individual entrepreneurs and small
and medium-sized enterprises (SME) domiciled in UK.

RATINGS RATIONALE

According to Moody's, the ratings take into account, among other
factors, (i) a loan-by-loan evaluation of the underlying loan
portfolio, complemented by historical performance information as
provided by Funding Circle, (ii) the structural features of the
transaction with the relative high credit enhancement from
subordination and excess spread compared to a conventional ABS
SME securitization and the inclusion of an amortizing cash
reserve designed to provide also liquidity coverage over the life
of the transaction, (iii) the appointment of a back-up servicer
at closing to mitigate counterparty risk; and (iv) the legal and
structural integrity of the transaction.

Moody's notes the transaction's following credit strengths,
amongst others: (i) a static portfolio with a short weighted
average life of less than 2 years; (ii) certain portfolio
characteristics, such as: a) the high granularity as reflected by
the low single obligor concentration (with the top obligor and
top 10 obligor exposure being 0.2% and 2.0% respectively) and an
effective number above 1,400; b) the loans' monthly amortization;
and c) the high yield of the portfolio, with a weighted average
interest rate of 9.6%; (iii) the transaction's structural
features, with include of, inter alia, (a) a GBP2.58 million
amortizing cash reserve that initially builds up to GBP3.88
million.  The reserve provides liquidity coverage and ongoing
credit support over the life of the transaction for the class A
to D notes and (b) a liquidity reserve (GBP0.39 million) designed
to cover interest deficiencies on the most senior outstanding
tranche and senior expenses; and (iv) no set-off risk, as
obligors do not have deposits or did not enter into a derivative
contract with Funding Circle.

On the other hand, Moody's notes that the transaction also
features a number of credit weaknesses, such as (i) potential
misalignment of interest between Funding Circle and the investors
as Funding Circle does not retain direct economic interest in the
transaction.  This is mitigated, amongst other things, by KLS
Diversified Master Fund L.P. (KLS, not rated) acting as a
retention holder and Funding Circle and KLS oblige themselves to
repurchase or indemnify the issuer in case of the representation
and warranties being proven incorrect; (ii) the short operating
history of Funding Circle, not rated, and acting as servicer;
(iii) the potential fraud risk resulting from the origination
through a platform; (iv) the relatively high industry
concentration as almost 40% of the obligors belong to the top two
sectors, namely construction & building (18%) and business
services (18%), and the high exposure to individual entrepreneurs
and micro-SMEs (almost 60% of the portfolio); (v) the portfolio's
low weighted average loan seasoning; and (vi) the loans are only
collateralized by a personal guarantee; (vii) partial exposure to
interest rate risk resulting from a partial hedging arrangements
involving an interest rate cap to cure any potential interest
rate mismatch between the fixed-rate assets and the floating-rate
liabilities.

As of April 27, 2016, the portfolio principal balance amounted to
GBP129.2 million.  The portfolio comprised 2,726 loan contracts
to 2,685 individual entrepreneurs and SMEs.  The loans were
originated between November 2014 and 21 April 2016, with a
weighted average seasoning of 7.5 months and a weighted average
remaining term of 3.6 years.  All loans benefit from a personal
guarantee.  The interest rate is fixed for the whole portfolio
with a weighted average interest rate of 9.6%.

In its quantitative assessment, Moody's assumed an inverse normal
default distribution for this securitized portfolio due to the
high level of borrower granularity.  The rating agency derived
the default distribution, namely the relevant main inputs such as
the mean default probability and its related standard deviation
by analyzing: (i) the characteristics of the loan-by-loan
portfolio information, complemented by the available historical
vintage data; (ii) the potential fluctuations in the
macroeconomic environment during the lifetime of this
transaction; and (iii) the portfolio concentrations in terms of
industry sectors and single obligors.  Moody's assumed the
cumulative default probability of the portfolio to be equal to
10% (equivalent to a B1/B2 rating proxy) with a coefficient of
variation (i.e., the ratio of standard deviation over the mean
default rate) of 53%.  The rating agency has assumed stochastic
recoveries with a mean recovery rate of 25%, a standard deviation
of 20%.  In addition, Moody's has assumed the prepayments to be
8% per year.  The base case mean loss rate and the CoV assumption
results in a Aa3 portfolio credit enhancement of around 29%.

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

Factors or circumstances that could lead to a downgrade of the
ratings affected by the action would be (1) the worse-than-
expected performance of the underlying collateral; and (2)
deterioration in the credit quality of the counterparties.
Factors or circumstances that could lead to an upgrade of the
ratings affected by the action would be a significant improvement
of the underlying collateral.

Stress Scenarios:

Moody's also tested other set of assumptions under its Parameter
Sensitivities analysis.  At the time the rating was assigned, the
model output indicated that the Class A would have achieved Aa3
even if the mean default rate was as high as 13.75% with a
recovery rate assumption of 20% (all other factors unchanged).
Additionally Moody's observes that under the same stressed
assumptions Class B, C and D would have achieved A2, Baa2 and Ba2
rating, respectively.

Parameter Sensitivities provide a quantitative, model-indicated
calculation of the number of notches that a Moody's-rated
structured finance security may vary if certain input parameters
used in the initial rating process differed.  The analysis
assumes that the deal has not aged.  It is not intended to
measure how the rating of the security might migrate over time,
but rather, how the initial rating of the security might differ
as certain key parameters vary.

The main source of uncertainty in the analysis relates to the
underwriting of the loans through a marketplace lending platform
and the asset quality.

For rating this transaction Moody's used the following models:
(i) ABSROM to model the cash flows and determine the loss for
each tranche and (ii) CDOROM to derive coefficient of variation
of the default distribution of the default distribution
applicable to this transaction.

More specifically, Moody's ABSROM cash flow model evaluates all
default scenarios occurring that are then weighted considering
the probabilities of such default scenarios as defined by the
transaction-specific default distribution.  On the recovery side
Moody's assumes a stochastic (normal) recovery distribution which
is correlated to the default distribution.  In each default
scenario, the corresponding loss for each class of notes is
calculated given the incoming cash flows from the assets and the
outgoing payments to third parties and noteholders.  Therefore,
the expected loss for each tranche is the sum product of (i) the
probability of occurrence of each default scenario; and (ii) the
loss derived from the cash flow model in each default scenario
for each tranche.  As such, Moody's analysis encompasses the
assessment of stressed scenarios.

Moody's used CDOROM to determine the coefficient of variation of
the default distribution for this transaction.  The Moody's
CDOROM model is a Monte Carlo simulation which takes borrower
specific Moody's default probabilities as input.  Each borrower
reference entity is modeled individually with a standard multi-
factor model incorporating intra- and inter-industry correlation.
The correlation structure is based on a Gaussian copula.  In each
Monte Carlo scenario, defaults are simulated.

The ratings address the expected loss posed to investors by the
legal final maturity of the notes.  In Moody's opinion, the
structure allows for timely payment of interest for class A
notes. Moody's ratings address only the credit risk associated
with the transaction, Other non-credit risks have not been
addressed but may have a significant effect on yield to
investors.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating SME Balance Sheet Securitizations"
published in October 2015.


SMALL BUSINESS 2016-1 DAC: S&P Rates Class D (Dfrd) Notes 'B(sf)'
-----------------------------------------------------------------
S&P Global Ratings has assigned its 'BBB (sf)', 'BBB (sf)',
'BB (sf)', and 'B (sf)' credit ratings to Small Business
Origination Loan Trust 2016-1 DAC's (S-BOLT 2016-1) asset-backed
floating-rate class A, B (Dfrd), C (Dfrd), and D (Dfrd) notes,
respectively.  At closing, S-BOLT 2016-1 also issued unrated
class E and class Z notes.

At closing, S-BOLT 2016-1 used the issuance proceeds of the class
A, B (Dfrd), C (Dfrd), D (Dfrd), E, and Z notes to fund the
purchase of the collateral.  The collateral in the pool comprises
amortizing loans granted to small and medium-sized enterprises
(SMEs) resident in the U.K. S-BOLT 2016-1 is a securitization of
KLS Diversified Asset Management L.P.'s/Dorset Rise DAC's SME
loans, advanced through Funding Circle Ltd.'s peer-to-peer
lending platform.

                        RATING RATIONALE

Economic Outlook

In S&P's base-case scenario for the U.K., S&P forecasts that GDP
will grow by 2.0% in 2016 and 2.2% in 2017, from 2.2% in 2015.
At the same time, S&P expects that unemployment will decline to
5.0% in 2016, and 5.2% in 2017 compared with 5.4% in 2015.  In
S&P's view, changes in GDP growth and unemployment are key
determinants of this portfolio's performance.  S&P's near- to
medium-term view is that the U.K. economy will remain resilient
and record positive growth.  S&P sets its credit assumptions to
reflect our economic outlook.

Credit Risk

S&P used static cohort data to size its base-case default rate.
Based on the historical data, the rapid expansion of Funding
Circle's business, and the fact that S&P has not observed the
performance of the loans during an economic downturn or rising
interest rate conditions, S&P has sized its base-case default
rate at 12% in the securitized pool.  This base-case also
incorporates S&P's current U.K. macroeconomic forecast.  S&P has
also used high-range multiples to address limited origination
data and to reflect this is the first transaction from a peer-to-
peer lender that S&P has rated in Europe, the Middle East, and
Africa (EMEA). S&P has not given credit to recoveries in its
analysis due to the unsecured nature of the assets, limited
historical recovery data, and the fact that S&P has only observed
recovery performance in a benign economic environment.  However,
the overall transaction data S&P has received meets our minimum
data standards and it has sufficient information to rate the
transaction.  S&P has analyzed credit risk by applying its
European consumer finance criteria.

Payment Structure

S&P has analyzed the transaction's payment structure and other
structural features under its European consumer finance criteria.
The transaction has separate principal and interest waterfalls.
A principal deficiency ledger (PDL), comprising six sub-ledgers
(one each for the class A, B (Dfrd), C (Dfrd), D (Dfrd), E, and Z
notes) records (i) defaults, and (ii) principal used to cover
senior interest deficiency.  The results of S&P's cash flow runs
are in line with its ratings on the notes.

The transaction has a reserve account, initially sized at 2.0% of
the value of the portfolio's closing balance.  The reserve is
structured to initially increase to 3.0% of the closing pool
balance.  It then amortizes to the lower of (i) 3.0% of the
closing pool balance, and (ii) 6% of the outstanding rated note
balance.  Also, there is a nonamortizing liquidity reserve, sized
at 0.3% of the closing pool balance, which provides liquidity
support to the most senior notes outstanding.  Furthermore, if
required, available principal proceeds can be applied to cover
any remaining interest deficiency on the most senior classes of
notes.

The interest on the notes is based on floating-rate one-month
LIBOR.  The loans pay a fixed rate of interest.  An interest rate
cap with a strike rate of 3% partially mitigates the impact of
rising interest rates.

Under S&P's European consumer finance criteria, it ran a high and
low prepayment scenario, as well as up, flat, and down interest
rate vectors, and equal, front-loaded, and back-loaded default
curves.  S&P's cash flow runs at the assigned rating levels show
that the rated notes pay timely interest and ultimate principal
for the class A notes, while S&P rated the class B (Dfrd), C
(Dfrd), and D (Dfrd) notes based on the payment of ultimate
interest and principal.

Counterparty Risk

Deutsche Bank AG (London Branch) is the issuer account bank and
the interest rate cap provider.  S&P's long- and short-term
issuer credit ratings on the bank, and the documented replacement
triggers support S&P's ratings under its current counterparty
criteria.

Operational Risk

Established in August 2010, Funding Circle operates a marketplace
lending platform, focused on small businesses, which allows
retail and accredited investors, government bodies, and
institutional investors to provide loans to SMEs.

S&P undertook a corporate overview in May 2015 at Funding
Circle's offices.  S&P views the underwriting and servicing of
the loans to be satisfactory.  However, due to Funding Circle's
limited performance history and the esoteric nature of the
assets, S&P has capped the ratings at 'BBB' based on the
application of S&P's operational risk criteria.  This
incorporates the potential impact of a servicer insolvency, the
ability to replace the servicer, and the likelihood of a
disruption in servicing for this relatively new and esoteric
asset type.  During S&P's operational risk assessment, it
reviewed the credit quality of the assets, Funding Circle's
servicing practices, the market depth of qualified replacement
servicers including systems compatibility, and the ease with
which Funding Circle could be replaced.  Furthermore, S&P
assessed the likelihood of a material disruption risk, which
covered aspects such as Funding Circle's internal controls, its
experience and track record, and the regulatory and legal
environment.

Legal Risk

S&P believes that the transaction may be exposed to commingling
risk.  However, there is a daily sweep into the transaction
account and a declaration of trust in favor of the issuer is in
place on the collection account.  Therefore, S&P applied
commingling risk as a liquidity stress in its analysis.  S&P has
analyzed legal risk, including the bankruptcy remoteness of the
special-purpose entity (SPE) in line with S&P's European legal
criteria.

Setoff Risk

The pool does not contain loans granted to Funding Circle's
employees and Funding Circle is not a deposit-taking institution.
Therefore, S&P did not consider setoff risk to be a rating
constraint.

Rating Stability

S&P has analyzed the effect of a moderate stress on its credit
assumptions and its ultimate effect on the ratings that S&P has
assigned.  The scenario results are in line with S&P's credit
stability criteria.

RATINGS LIST

Ratings Assigned

Small Business Origination Loan Trust 2016-1 DAC
GBP129 Million Peer-To-Peer Originated SME Loans Asset-Backed
Floating-Rate Notes (Including Unrated Subordinated Notes)

Class             Rating          Amount
                                (mil. GBP)

A                 BBB (sf)          87.8
B (Dfrd)          BBB (sf)           6.1
C (Dfrd)          BB (sf)            7.8
D (Dfrd)          B (sf)             6.3
E                 NR                14.7
Z                 NR                 6.5

NR--Not rated.


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


* BOOK REVIEW: Risk, Uncertainty and Profit
-------------------------------------------
Author: Frank H. Knight
Publisher: Beard Books
Softcover: 381 pages
List Price: $34.95
Review by Gail Owens Hoelscher
Order your personal copy today at
http://www.beardbooks.com/beardbooks/risk_uncertainty_and_profit.
html

The tenets Frank H. Knight sets out in this, his first book,
have become an integral part of modern economic theory. Still
readable today, it was included as a classic in the 1998 Forbes
reading list. The book grew out of Knight's 1917 Cornell
University doctoral thesis, which took second prize in an essay
contest that year sponsored by Hart, Schaffner and Marx. In it,
he examined the relationship between knowledge on the part of
entrepreneurs and changes in the economy. He, quite famously,
distinguished between two types of change, risk and uncertainty,
defining risk as randomness with knowable probabilities and
uncertainty as randomness with unknowable probabilities. Risk,
he said, arises from repeated changes for which probabilities
can be calculated and insured against, such as the risk of fire.
Uncertainty arises from unpredictable changes in an economy,
such as resources, preferences, and knowledge, changes that
cannot be insured against. Uncertainty, he said "is one of the
fundamental facts of life."

One of the larger issues of Knight's time was how the
entrepreneur, the central figure in a free enterprise system,
earns profits in the face of competition. It was thought that
competition would reduce profits to zero across a sector because
any profits would attract more entrepreneurs into the sector and
increase supply, which would drive prices down, resulting in
competitive equilibrium and zero profit.

Knight argued that uncertainty itself may allow some
entrepreneurs to earn profits despite this equilibrium.
Entrepreneurs, he said, are forced to guess at their expected
total receipts. They cannot foresee the number of products they
will sell because of the unpredictability of consumer
preferences. Still, they must purchase product inputs, so they
base these purchases on the number of products they guess they
will sell. Finally, they have to guess the price at which their
products will sell. These factors are all uncertain and
impossible to know. Profits are earned when uncertainty yields
higher total receipts than forecasted total receipts. Thus,
Knight postulated, profits are merely due to luck. Such
entrepreneurs who "get lucky" will try to reproduce their
success, but will be unable to because their luck will
eventually turn.

At the time, some theorists were saying that when this luck runs
out, entrepreneurs will then rely on and substitute improved
decision making and management for their original
entrepreneurship, and the profits will return. Knight saw
entrepreneurs as poor managers, however, who will in time fail
against new and lucky entrepreneurs. He concluded that economic
change is a result of this constant interplay between new
entrepreneurial action and existing businesses hedging against
uncertainty by improving their internal organization.
Frank H. Knight has been called "among the most broad-ranging
and influential economists of the twentieth century" and "one of
the most eclectic economists and perhaps the deepest thinker and
scholar American economics has produced." He stands among the
giants of American economists that include Schumpeter and Viner.
His students included Nobel Laureates Milton Friedman, George
Stigler and James Buchanan, as well as Paul Samuelson. At the
University of Chicago, Knight specialized in the history of
economic thought. He revolutionized the economics department
there, becoming one the leaders of what has become known as the
Chicago School of Economics. Under his tutelage and guidance,
the University of Chicago became the bulwark against the more
interventionist and anti-market approaches followed elsewhere in
American economic thought. He died in 1972.


                            *********

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

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

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


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *