TCREUR_Public/160524.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Tuesday, May 24, 2016, Vol. 17, No. 101


                            Headlines


C Z E C H   R E P U B L I C

NEW WORLD: Czech Miners' Unions Make Joint Offer for OKD Unit


G E R M A N Y

SMART SME CLO 2006-1: Fitch Hikes Class E Notes Rating to CCCsf


G R E E C E

INTRALOT SA: Fitch Affirms B+ Issuer Default Rating, Outlook Neg.


I R E L A N D

ANTHRACITE EURO 2006-1: Moody's Affirms C Ratings on 3 Notes
LUSITANO MORTGAGES: Fitch Issues Correction to Oct. 29 Release
SMURFIT KAPPA: Fitch Affirms BB+ Long-Term Issuer Default Rating


I T A L Y

FCA BANK: Moody's Hikes Baseline Credit Assessment Rating to ba2
ILVA SPA: EU Commission to Probe December 2015 Loan


K A Z A K H S T A N

ALTYN BANK: Moody's Assigns Ba2 Deposit Ratings, Outlook Negative


M A C E D O N I A

MACEDONIA: Fitch Says Elections Adds Pressure on BB+ Rating


M O R D O V A

MORDOVIA REPUBLIC: Moody's Withdraws B3 Currency Issuer Ratings


N E T H E R L A N D S

CADOGAN SQUARE VII: Moody's Assigns Ba2 Rating to Class E Debt


R O M A N I A

ASTRA ASIGURARI: Liquidator to Start Layoffs Next Month


R U S S I A

RUSHYDRO PJSC: Fitch Affirms 'BB+' LT Issuer Default Ratings


S L O V E N I A

PEKO: Creditors Register EUR8.1-Mil. Claims


S P A I N

PYMES SANTANDER 9: DBRS Confirms CCC Rating on Series B Notes
PYMES SANTANDER 11: DBRS Confirms C(sf) Rating on Series C Notes


U K R A I N E

KHARKOV: Fitch Affirms CCC Long-Term Issuer Default Ratings


U N I T E D   K I N G D O M

ASCENTIAL PLC: Fitch Affirms BB- LT Issuer Default Rating
BHS GROUP: Directors, Advisers Face Inquiry Into Collapse
BYYD TECH: SFP to Conducts Sale of Assets After Administration
MOTO VENTURES: Fitch Affirms B LT Issuer Default Rating
TATA STEEL: Excalibur Steel in Rescue Talks with Liberty House

TRAVELODGE: Moody's Assigns Ba3 Ratings to Credit Facilities
WILLIAM HILL: Moody's Changes Outlook on Ba1 CFR to Stable


                            *********


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C Z E C H   R E P U B L I C
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NEW WORLD: Czech Miners' Unions Make Joint Offer for OKD Unit
-------------------------------------------------------------
Robert Muller at Reuters reports that Czech miners' unions have
teamed up with lignite mine owner Pavel Tykac and another
investor to make an offer for New World Resources' insolvent
mining subsidiary OKD.

The unions did not give any details of their offer to NWR, which
is mainly owned by a trio of international investment funds,
Reuters notes.

OKD, NWR's main business, filed for insolvency this month after
failing to secure government aid, Reuters relates.

The unions, as cited by Reuters, said OKD should be able to
continue its operations if the offer is accepted.

"Our common interest is to take part in preparing the
restructuring plan aimed at the as smooth as possible functioning
of OKD, the fullest possible employment and creating conditions
for OKD's existence for a matter of years," Reuters quotes the
country's main mining union chief Jan Sabel as saying.

NWR's main owners -- Ashmore Investment Management Limited,
Gramercy Funds Management LLC and M&G Investment Management
Limited -- have offered to sell the coal miner to the Czech state
for about EUR120 million (US$134 million), cleared of most debt,
Reuters discloses.

NWR has been trying to reach a restructuring and state aid
agreement with the government since the end of last year, after
plunging into losses as global coal prices fell, Reuters relays.

It has debt of around CZK17 billion (US$704 million) and assets
worth less than CZK7 billion, Reuters says, citing court filings.

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



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G E R M A N Y
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SMART SME CLO 2006-1: Fitch Hikes Class E Notes Rating to CCCsf
---------------------------------------------------------------
Fitch Ratings has upgraded SMART SME CLO 2006-1 Ltd's EUR6
million class E notes (ISIN: XS0276640835) to 'CCCsf' with a
Recovery Estimate (RE) of 0%, from 'CCsf' with a RE of 40%.

The transaction is a partially funded synthetic collateralized
debt obligation (CDO) referencing a portfolio of loans, revolving
credit facilities and other payment claims to SMEs based
originally predominantly in Germany, but now mostly in Spain, due
to amortization of the German assets. The debt instruments were
originated by Deutsche Bank AG (A-/Stable/F1) and its Spanish and
Italian subsidiaries.

KEY RATING DRIVERS

The upgrade on the class E notes reflects Fitch's view that the
risk of loss attribution to the notes has reduced given the still
significant loss absorption capacity of the class F notes and of
the first loss threshold amount (SXS), but the rating also
reflects that default is still a real possibility. This
assessment is based on ongoing recoveries observed from
liquidated assets. Yet, given limited information on the recovery
prospects of outstanding assets to be liquidated, the risk of
loss attribution remains material.

At scheduled maturity in December 2013, all performing loans were
removed from the reference portfolio in line with the transaction
documentation. The current portfolio of EUR102.4m consequently
only contains defaulted or impaired assets. After the removal and
further liquidations the portfolio is heavily concentrated, with
36 obligor groups each representing 0.5% or more of the portfolio
balance representing 91% of the pool. The top three industries --
mainly real estate -- account for 79% of the pool. Spanish
borrowers represent 90% of the portfolio. The percentage of
assets with a Fitch-equivalent rating of 'D' is 98%.

The distressed character of the remaining portfolio has Fitch to
refrain from using its Portfolio Credit Model to assess the
default and loss rates of the portfolio. As credit risk is
covered synthetically, Fitch also did not conduct a cash flow
analysis. This represents a variation of the Criteria for Rating
Granular Corporate Balance-Sheet Securitisations (SME CLOs),
published March 3, 2016.

Fitch expects portfolio losses realised before legal final
maturity to be in excess of the available SXS of EUR28.2m. Losses
exceeding this amount will be absorbed by the notes in reverse
order, as already started with the class F notes in September
2015. Fitch expects all non-liquidated credit events to go
through the work-out process prior to legal maturity.

If an asset's work-out process is not completed at legal final
maturity in December 2016, a loss of zero will be applied and the
notes thus do not have to bear losses.

Fitch notes that while remedial actions, following the downgrade
of Deutsche Bank to below 'F1+', were not taken, the low ratings
of the notes mean that the bank is still a Fitch-eligible
counterparty.

RATING SENSITIVITIES

After scheduled maturity, the transaction is primarily sensitive
to the amount of recoveries achievable on the defaulted and
impaired assets and the timing of loss allocation.

DUE DILIGENCE USAGE

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

DATA ADEQUACY

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

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

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



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G R E E C E
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INTRALOT SA: Fitch Affirms B+ Issuer Default Rating, Outlook Neg.
-----------------------------------------------------------------
Fitch Ratings has affirmed Intralot S.A.'s Long-Term Issuer
Default Rating (IDR) at 'B+'. The Outlook is Negative.

The Negative Outlook reflects Intralot's high leverage (on both a
gross and net of cash basis) and deteriorating financial
flexibility. This is reflected by weak fixed charge cover and
negative free cash flow (FCF) generation, following significant
cash outflows related to working capital, minority dividends and
debt buy backs in FY15. In addition, the business model is being
increasingly challenged by competition, pressure on margins and
regulation. A downgrade is still possible, but management is
working on a series of corrective actions including albeit not
limited to, asset rebalancing that could underpin the group's
financial flexibility, if successfully executed within the next
six months.

Fitch said, "Intralot has also shown some early signs of
improvement in operating performance over the past two quarters,
suggesting stabilization of margin erosion. For Intralot's IDR to
stabilize at 'B+', we would expect management to deliver on
planned transactions during the year, with a public commitment
toward a clear deleveraging policy by way of gross debt
reduction, coupled with sustained improvement in the operating
performance throughout the year.

KEY RATING DRIVERS

Recurring Contracted EBITDA

"We acknowledge that more than 95% of EBITDA is recurring.
Intralot's profit margins have been structurally falling as the
group takes on lower margin management and licensed operations
activities in response to increasing competition in the sector.
Balancing this, in 2015, 50% of EBITDA was derived from contracts
with a duration of four to five years. The remainder is derived
from licenses that do not expire. Due to the high switching costs
from changing supplier, many of these should be renewed although
Fitch believes they could be on lower margins and may require a
renewal fee. In our rating case, we expect EBITDA margins
(calculated on a gross revenue basis) to improve due to improved
margin mix following the Gamenet transaction and other disposals
to around 14.5% at FY18."

Weak FCF

Fitch said, "Cash flow has weakened due to high pay out on
minority dividends, taxes, working capital and bond-buybacks in
2015. In our rating case, we expect the funds from operations
(FFO) margin to remain in the low single digits due to high
minority dividend payments, and free cash flow (FCF) margin to
remain mildly negative by 2017. The FFO margin has fallen to 3%
at FY15, from around 8% at FY12, which is weak relative to other
sector peers in the 'B' rating category. A stabilization of the
Outlook would be contingent on Intralot's FFO margin trending
above 7% driven by improvements in its organic operating
performance, or as a result of changes in the business mix from
the contemplated asset transactions."

Weakened Credit Metrics

Fitch said, "We expect FFO adjusted gross leverage to be around
6.0x (around 4.0x net of cash) over the rating horizon, although
we could see an acceleration in deleveraging, and FFO fixed
charge cover trending toward 2.0x by 2017 helped by planned asset
rebalancing. If achieved on a forward-looking basis, these
metrics along with enhanced profitability would remain compatible
with the rating. However, any meaningful delays in achieving
these targets, or if management allocated proceeds to a different
purpose than permanent debt reduction, it will likely be negative
for the ratings."

More decisive action by management follows a weakening leverage
profile following significant cash outflows in 2015, eliminating
headroom previously available under the 'B+' IDR. Intralot
reported cash outflows of around EUR150 million, primarily
related to increased working capital linked to regulation in
Italy, higher than usual minority dividends and other one-off
items, such as suppliers' payment normalization, adverse FX
impacts and bond buy-backs.

Reputable Gaming Technology Supplier

Intralot has established itself in the international gaming
sector as a reputable provider of, among other products, systems
to manage lotteries through software platforms and hardware
terminals and in betting, a large algorithm-based sportsbook.
This has enabled it to win important contracts for the supply of
technology and the management of lotteries in the US, Australia
and Greece and for sports-betting in Turkey and Germany.

Scope for Growth

The gradual liberalization of gaming markets, governments'
keenness on finding ways to raise tax proceeds and the increasing
supply of new games, should all provide increasing opportunities
for Intralot, such as its expansion into Africa. The company
should be able to leverage on its experience and reputation and
also benefit from the limited number of reputable suppliers in
the industry.

Limited Linkage with Greece

Fitch said, "Intralot generates only 2% of its revenues and less
than 5% of its EBITDA in Greece (CCC). We view Greece's low
sovereign rating as neutral for Intralot's ratings given its
contractual requirement to maintain large portions of its cash
outside Greek banks. In the eventuality of a sovereign default,
including Greece's exit from the euro, the company has
contingency plans in place that they could complete within three
months. Intralot's wide geographic diversification of its
business and lack of meaningful reliance on Greek banks for
funding, allows us to maintain a rating that is currently two
notches above Greece's Country Ceiling of 'B-'."

KEY ASSUMPTIONS

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

-- Underlying group revenue flat increasing by around 1-2%
    annually offset by Gamenet transaction plus further potential
    disposals.

-- EBITDA margins (calculated on a gross revenue basis)
    improving towards 14.5% by FY18.

-- Minority dividends fully paid out and increasing annually in
    line with profits, of around EUR35 million in FY16 and
    EUR40 million in FY17.

-- Stable capex in FY16 rising to EUR85 million in FY17.

-- No common dividend payments or other shareholder
    distributions.

-- Debt reduction of around EUR100 million in FY16, from
    corrective actions including albeit not limited to, asset
    rebalancing within the next six months.

RATING SENSITIVITIES

Future developments that may, individually or collectively, lead
to negative rating action include:

-- Evidence that new contracts or renewals are occurring at
    materially less favorable conditions for Intralot, resulting
    in continuing weak FFO and EBIT margins of under 7%, large
    upfront concession fees or capex outlays (FY15: 3.3% and 4.1%
    respectively)

-- FFO-based net lease adjusted leverage sustainably above 4.5x
    (or FFO gross lease adjusted leverage above 5.5x) (FY15: 4.8x
    and 7.0x respectively)

-- FFO fixed charge cover below 2.0x (FY15: 1.7x)

-- Material reduction in liquidity without a commensurate
    reduction in gross leverage.

Future developments that may, individually or collectively, lead
to a revision of the Outlook to Stable include:

-- Positive profit growth derived from a stronger return on
    capital on existing and future contracts with limited capex
    outlays resulting in FFO/EBIT margins above 7% and enhanced
    FCF generation around break-even.

-- FFO-based net lease adjusted leverage reducing sustainably
    below 4.5x (or FFO gross lease adjusted leverage below 5.5x)
    with available unrestricted cash deposited predominantly at
    investment grade-rated counterparties.

-- FFO fixed charge cover above 2.0x on a sustained basis.

LIQUIDITY

In response to the Greek debt crisis and to protect its liquidity
position, Intralot fully drew on its syndicated revolving credit
facility (RCF; EUR120 million of EUR200 million facility)
maturing May 2017. The cash is being held primarily in non-Greek
banks.

Fitch said, "Intralot had EUR276.6 million of cash on balance
sheet as at FYE15, and around EUR55 million of undrawn
availability under various bilateral facilities at end-Q116
ending March 2016. While the current liquidity position is
comfortable, given no meaningful debt maturities within the next
12 months, in our rating case projections we assume the RCF will
be renewed by May 2017, therefore the next maturity will be
August 2018, when the EUR325 million bond matures."

FULL LIST OF RATING ACTIONS

Intralot S.A
-- Long-Term IDR affirmed at 'B+', Outlook Negative

Intralot Finance Luxembourg S.A.
-- Senior unsecured affirmed at 'BB-'/'RR3'

Intralot Capital Luxembourg S.A.
-- Senior unsecured affirmed at 'BB-'/'RR3'



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I R E L A N D
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ANTHRACITE EURO 2006-1: Moody's Affirms C Ratings on 3 Notes
------------------------------------------------------------
Moody's Investors Service has affirmed the ratings on the
following notes issued by Anthracite EURO CRE CDO 2006-1 plc.:

Cl. B Senior Floating Rate Notes due 2042, Affirmed Ca (sf);
previously on May 28, 2015 Affirmed Ca (sf)

Cl. C Deferrable Interest Floating Rate Notes due 2042, Affirmed
C (sf); previously on May 28, 2015 Affirmed C (sf)

Cl. D Deferrable Interest Floating Rate Notes due 2042, Affirmed
C (sf); previously on May 28, 2015 Affirmed C (sf)

Cl. E Deferrable Interest Floating Rate Notes due 2042, Affirmed
C (sf); previously on May 28, 2015 Affirmed C (sf)

RATINGS RATIONALE

Moody's has affirmed the ratings on the transaction because its
key transaction metrics are commensurate with existing ratings.
The affirmation is the result of Moody's on-going surveillance of
commercial real estate collateralized debt obligation (CRE CDO
CLO) transactions.

Anthracite EURO CRE CDO 2006-1 plc. is a currently static cash
transaction, the reinvestment period ended in February 2012. The
transaction is backed by a portfolio: (i) b-note debt (49.2% of
the collateral balance); (ii) commercial mortgage backed
securities (CMBS) (40.9%); and (iii) mezzanine interests (9.8%).
As of the trustee's March 31, 2016 report, the aggregate note
balance of the transaction, including preferred shares, is
EUR206.2 million, from EUR342.5million at issuance. The paydowns
were directed to the senior most outstanding class of notes as a
result of a combination of regular amortization, resolution and
sale of defaulted collateral, and the failing of certain par
value tests.

The pool contains 13 assets totaling $91.4 million (93.7% of the
collateral pool balance) that are listed as defaulted securities
as of the trustee's March 31, 2016 report. Six of these assets
(37.0% of the defaulted balance) are CMBS certificates, six
assets are B-notes (59.1%), and one asset is a mezzanine interest
(0.0%). While there have been significant realized losses on the
underlying collateral to date, Moody's does expect significant
losses to continue to occur on the defaulted securities.


LUSITANO MORTGAGES: Fitch Issues Correction to Oct. 29 Release
--------------------------------------------------------------
Fitch Ratings on May 20 issued a correction to a rating action
commentary published on October 29, 2015. It amends the section
on payment interruption, which incorrectly stated that the
structure of Lusitano 6 was exposed to payment interruption risk.

Fitch Ratings has affirmed 26 and downgraded one tranche of the
Lusitano RMBS series.

The six transactions compromise loans originated and serviced by
Novo Banco, S.A., formerly Banco Espirito Santo, S.A.

KEY RATING DRIVERS

Default and Recovery Information

In 2014, Fitch received loan-by-loan default and recovery
information on Novo Banco's securitized portfolio, which was used
to validate the agency's analytical assumptions for quick sale
adjustment (QSA) and recovery timing. No updated information was
made available to Fitch for this review. Given the limited
changes in the housing and mortgage market since last year, Fitch
used this data in this year's performance review.

The data on sold properties taken into possession suggests an
average of 20.6% discount to the property value estimated by
applying the home price index to the valuation at loan
origination. The data also suggested Novo Banco's QSA was below
Fitch's assumptions for Portuguese RMBS analysis (40%).

In 2014, Novo Banco provided Fitch with the average timing of
loans from the point when they first enter into arrears, default
and are subsequently recovered for each Lusitano transaction.
Fitch notes that in Lusitano 1, the time between first point of
arrears until foreclosure was approximately six years, rather
than the agency's base assumption of four years. As a result, and
following the adjustments applied in 2014, the agency increased
its base foreclosure timing to six from four years. All other
transactions were in keeping with Fitch's base assumption and
therefore no adjustment was applied.

These recovery assumptions were applied to both expected
defaults, as well as outstanding defaults that have been
provisioned for.

Provisioning Mechanisms

Lusitano 1, 3, 4, 5 and 6 transactions feature provisioning
mechanisms, whereby excess spread is diverted to cover deemed
principal losses. The amount provisioned is dependent on the
number of monthly instalments in arrears.

To account for the staggered nature of the provisions, Fitch
estimated the amounts of loans that have defaulted, but for which
full provisions have not yet been made, which range from 0.8%
(Lusitano 3) to 2.1% (Lusitano 5) of the outstanding performing
collateral balance. These amounts have been deducted from the
available current credit enhancement in Fitch's analysis, as they
are expected to be payable in the coming quarters. Given the
current credit enhancement for the notes, the reduction has had
no effect on the notes' ratings.

This analysis approach was not applied to Lusitano 2, as the
transaction provisions for the full outstanding balance of the
loan once it reaches arrears of 36 months.

Resilient Performance

Asset performance diverges between the more seasoned transactions
(Lusitano 1 to 3) and the more recent issuances (Lusitano 4 to
6). As of the latest reporting periods, cumulative written off
loans, defined as loans with more than 12 months in arrears in
Lusitano 3 to 6, 24 months in Lusitano 1 and 36 months in
Lusitano 2, as a percentage of the original securitized balance
range between 1% (Lusitano 2) and 2.8% (Lusitano 3) compared with
3.2%, 4.0% and 5.7% for Lusitano 4, 5 and 6. The difference in
performance is mostly driven by the adverse loan characteristics
and higher loan-to-value ratio loans in the later pools.

Decreasing default rates have resulted in more excess spread
being available to replenish the reserve fund in Lusitano 4 to
22.4% of its target as at the last payment date, while the
outstanding principal deficiency ledger (PDL) in Lusitano 5
decreased to EUR7.7 million. In contrast, a spike in defaults in
this period led to an increase in the PDL balance for Lusitano 6
to EUR19.7 million from EUR15.9 million 12 months ago.

Fitch expects performance to remain stable allowing further
replenishment of the reserve fund in Lusitano 4 and reductions to
the outstanding PDL balances of Lusitano 5. These views are
reflected in the affirmation of these transactions. The increase
in Lusitano 6's PDL balance led Fitch to affirm the ratings, with
a downward revision of the Recovery Estimate on the class D notes
to 5% from 10%.

Contrasting Credit Enhancement Levels

The strong build-up in credit enhancement in Lusitano 1 and 2 led
to the affirmation and Positive Outlooks on the A and B notes in
these transactions. The comparatively thin credit enhancement on
the senior tranche in Lusitano 3, caused by the pro-rata
amortization of the notes and on-going amortization of the
reserve fund, led to the downgrade of these notes.

Payment Interruption

The structures of Lusitano 3 to 5 are exposed to payment
interruption risk in the event of servicer default. The
transaction structures do not have alternative structural
mitigants in place to address this risk. As a result, in its
analysis, Fitch assessed the liquidity available in the
structures to fully cover senior fees, net swap payments and note
interest in case of servicing disruption.

Fitch's analysis shows that the liquidity available to the
structure, which comes in the form of a reserve fund (reduced by
the expected loss), is insufficient to provide payments to the
notes for two payment periods in the event of servicer default.
As a result, Fitch believes that the transaction structures
cannot support the highest achievable rating for Portuguese
structured finance transactions (A+sf). In Fitch's view, the
ratings of the notes cannot exceed a 'BBBsf' category.
Consequently, future upgrades as a result of any improvement in
asset performance are limited unless payment interruption risk is
sufficiently mitigated.

RATING SENSITIVITIES

Deterioration in asset performance may result from economic
factors. A corresponding increase in new defaults and associated
pressure on excess spread and reserve funds, beyond Fitch's
assumptions, could result in negative rating action. Furthermore,
an abrupt shift of the underlying interest rates might jeopardize
loan affordability of the underlying borrowers.

The ratings are also sensitive to changes in Portugal's Country
Ceiling and consequently changes to the highest achievable rating
of Portuguese structured finance notes.

DUE DILIGENCE USAGE

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

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. Information about foreign borrowers
(for all pools) and second homes (for Lusitano 2) was not
available for this review. Fitch assumed that these borrower and
loan characteristics were detrimental and, therefore, made
appropriate adjustments in its analysis. Fitch has not reviewed
the results of any third party assessment of the asset portfolio
information or conducted a review of origination files as part of
its ongoing monitoring.

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

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

SOURCES OF INFORMATION

The information below was used in the analysis.

-- Loan-by-loan data provided by Novo Banco and Sourced from
European Data Warehouse with the following cut-off dates:
May 29, 2015 for Lusitano 1, 4, 6
June 30, 2015 for Lusitano 3, 5
July 31, 2015 for Lusitano 2

-- Transaction reporting provided by:
Deutsche Bank for:
Lusitano 1 since close and until 15 June 2015
Lusitano 2 since close and until 17 August 2015
Lusitano 3 since close and until 16 July 2015

Citibank for:
Lusitano 4 since close and until 31 May 2015
Lusitano 5 since close and until 30 June 2015
Lusitano 6 since close and until 31 May 2015

-- Recovery information for all deals provided by Novo Banco and
    received by email with a cut-off date of July 31, 2014

MODELS

The EMEA RMBS Surveillance model below was used in the analysis.

EMEA RMBS Surveillance Model.

The rating actions are as follows:

Lusitano Mortgage No. 1 Plc
Class A (ISIN XS0159068807): affirmed at 'A+sf'; Outlook Positive
Class B (ISIN XS0159070456): affirmed at 'A+sf'; Outlook Positive
Class C (ISIN XS0159070886): affirmed at 'A+sf'; Outlook Stable
Class D (ISIN XS0159071009): affirmed at 'Asf'; Outlook Stable
Class E (ISIN XS0159285062): affirmed at 'BBBsf'; Outlook Stable

Lusitano Mortgage No. 2 Plc
Class A (ISIN XS0178545421): affirmed at 'A+sf'; Outlook Positive
Class B (ISIN XS0178546742): affirmed at 'A+sf'; Outlook Positive
Class C (ISIN XS0178547047): affirmed at 'A+sf'; Outlook Stable
Class D (ISIN XS0178547393): affirmed at 'BBB+sf'; Outlook Stable
Class E (ISIN XS0178547633): affirmed at 'BBsf'; Outlook Stable

Lusitano Mortgage No. 3 Plc
Class A (ISIN XS0206050147): downgraded to 'BBB+sf' from 'Asf';
Outlook Stable
Class B (ISIN XS0206051384): affirmed at 'BBBsf'; Outlook Stable
Class C (ISIN XS0206051541): affirmed at 'BBsf'; Outlook Stable
Class D (ISIN XS0206052432): affirmed at 'Bsf'; Outlook Stable

Lusitano Mortgage No. 4 Plc
Class A (ISIN XS0230694233): affirmed at 'BBB-sf'; Outlook Stable
Class B (ISIN XS0230694589): affirmed at 'BB+sf'; Outlook Stable
Class C (ISIN XS0230695552): affirmed at 'B+sf'; Outlook Stable
Class D (ISIN XS0230696360): affirmed at 'CCCsf'; Recovery
Estimate 60%

Lusitano Mortgage No. 5 Plc
Class A (ISIN XS0268642161): affirmed at 'BB+sf'; Outlook Stable
Class B (ISIN XS0268642831): affirmed at 'B+sf'; Outlook Stable
Class C (ISIN XS0268643649): affirmed at 'CCCsf'; Recovery
Estimate 10%
Class D (ISIN XS0268644886): affirmed at 'CCsf'; Recovery
Estimate 0%

Lusitano Mortgage No. 6 Plc
Class A (ISIN XS0312981649): affirmed at 'BBBsf'; Outlook Stable
Class B (ISIN XS0312982290): affirmed at 'BB-sf'; Outlook Stable
Class C (ISIN XS0312982530): affirmed at 'B-sf'; Outlook Stable
Class D (ISIN XS0312982704): affirmed at 'CCCsf'; Recovery
Estimate 5%
Class E (ISIN XS0312983009): affirmed at 'CCsf'; Recovery
Estimate 0%


SMURFIT KAPPA: Fitch Affirms BB+ Long-Term Issuer Default Rating
----------------------------------------------------------------
Fitch Ratings has revised the Outlook on Smurfit Kappa Group
plc's (SKG) Long-Term Issuer Default Rating (IDR) to Stable from
Negative. It has also affirmed the IDR and senior unsecured
ratings of SKG, Smurfit Kappa Acquisitions and Smurfit Kappa
Treasury Funding at 'BB+'. The rating actions follow Fitch's
review of SKG's business and financial profile and trends in the
packaging sector.

The Outlook revision reflects Fitch's expectation of continued
stable cash flow generation and modest deleveraging driven by
much slower acquisition activity in 2016 and lower capex, and
despite increasing dividend payments. Fitch has relaxed its funds
from operations (FFO)-adjusted net leverage sensitivity for the
ratings by 0.5x, in recognition of the group's stable and
improving business profile. Fitch expects SKG's growth strategy
will improve scale, diversification and exposure to regions with
long-term growth, through mainly modest bolt-on acquisitions.

The affirmation reflects SKG's healthy business profile, strong
market positions, integrated operations and exposure to long-term
favorable packaging trends, which contribute to an overall stable
business model. Fitch forecasts FFO-adjusted net leverage to
reduce to a comfortable level for the ratings of below 3.0x in
2017, assuming significantly reduced acquisitions in 2016
compared with last year and a reduction in capex in 2017.

KEY RATING DRIVERS

Acquisitions Delay Deleveraging

Fitch said, "The group's latest acquisitions in Latin America
have slowed deleveraging relative to Fitch's previous
expectations. SKG's management is publicly committed to
maintaining a 'BB+' rating. Fitch expects FFO-adjusted net
leverage to reduce to below 3.0x in 2017, despite a shift in the
group's focus away from debt reduction. We will monitor the pace
of acquisitions and their successful integration into the group
over the next 12 to 18 months."

Latam Focus Improves Diversification

Recent acquisitions in Brazil, the Dominican Republic, El
Salvador and Costa Rica improved SKG's business profile, as they
diversify operations away from western Europe. They also
reinforce the group's position as the largest corrugated
packaging supplier in the region, improving the group's
attractiveness to multinational customers.

Central and South America are among the fastest-growing markets
for paper-based packaging globally, with Brazil contributing 40%
of Latin American corrugated demand. The acquisition of INPA and
Paema provides SKG with additional integrated operations,
including three recycled containerboard mills and four corrugated
box plants.

Leading Packaging Producer

The ratings are supported by the leading market positions of SKG
as the largest European and only pan-regional packaging company
in the Americas, its broad geographic diversification and
integrated containerboard and corrugated operations. The
packaging sector experiences above-average stability and is
driven by growth in population, disposable income, e-commerce,
convenience food and smaller packaging sizes due to single
households. In particular, paper packaging benefits from a trend
towards more sustainable, recyclable materials. This contrasts
with the paper sector, which is in secular decline.

Healthy Trading

Operating performance is solid, with corrugated packaging volumes
in 1Q16 growing 5% yoy and reported EBITDA margin improving by
50bps yoy. Fitch forecasts continued healthy earnings in 2016 and
revenue growth of around 2%-3.5% over the coming years, supported
by acquisitions. Earnings will benefit from a benign operating
environment, given fairly balanced supply-demand dynamics. In
addition, management's efficiency improvement and asset
optimization program will sustainably improve the group's cost
structure.

Stable Margins and FCF

The group's stable and positive free cash flow (FCF) generation
through the cycle is credit- positive. SKG's earnings and FCF
have been more stable, between 2009 and 2014, than the average
for companies rated 'BB' to 'BBB-', due to the group's exposure
to fast moving consumer goods (around 60% of revenues). In
addition, self-sufficiency in containerboard limits margin
compression resulting from raw material price inflation.

Fitch said, "We expect continued modest revenue growth and the
group's efficiency program to support positive post-dividend FCF
in excess of EUR150 million, despite higher capex in 2016 and
steadily increasing dividends."

KEY ASSUMPTIONS

-- Revenue growth of 2%-3.5% per year from 2016-2018.
-- EBITDA margin increasing to around 14.5% by 2017.
-- Net acquisitions of EUR50m in 2016, valued at 9x EBITDA and
    generating EBITDA margins of 18%.
-- Gradually increasing dividends, in line with higher earnings.
-- Capex trending down towards EUR400m in 2018.
-- Restricted cash required for operations stable at around
    EUR105 million.
-- Increases in base interest rate over time, resulting in
    marginal increase in average cost of debt.

RATING SENSITIVITIES

Future developments that could lead to positive rating action
include:

-- Increased geographic and product diversification improving
    business risk.
-- Stable or increasing EBITDA margin.
-- FFO-adjusted net leverage below 2.5x.
-- FCF margin above 2.5% (2015 outturn: 2.5%).

Future developments that could lead to negative rating action
include:

-- Larger-than-expected acquisitions or increased shareholder
    returns that further delay deleveraging.
-- FFO-adjusted net leverage above 3.5x on a sustained basis.
-- FCF margin below 1%.

LIQUIDITY

At end-2015, SKG had liquidity consisting of EUR275 million in
cash (of which Fitch considers EUR105 million restricted for
working capital and other operational requirements) and EUR616
million in available committed credit facilities, compared with
EUR85 million in short-term debt maturities. Coupled with
positive FCF expected for the following 12 months, this will
provide ample coverage of debt service.

In accordance with Fitch's policies, the issuer appealed and
provided additional information to Fitch that resulted in a
rating action that is different to the original rating committee
outcome.



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


FCA BANK: Moody's Hikes Baseline Credit Assessment Rating to ba2
----------------------------------------------------------------
Moody's Investors Service has affirmed the long-term and short-
term deposit ratings of FCA Bank (FCAB) at Baa1 and Prime-2,
respectively, and its issuer rating at Baa2. The outlook on the
long-term ratings is stable. At the same time, the rating agency
upgraded the bank's baseline credit assessment (BCA) to ba2 from
ba3. Moody's affirmed FCAB's adjusted BCA at ba1, which
incorporates one notch of uplift for affiliate support from its
50% shareholder Credit Agricole S.A. (CASA; A2/A2 positive, baa2
adjusted BCA) and also affirmed the bank's Counterparty Risk (CR)
assessments of Baa1(cr)/Prime-2(cr). The debt ratings of FCAB's
supported entities were also affirmed.

These actions follow the upgrade of the corporate family rating
(CFR) of FCAB's 50% industrial owner Fiat Chrysler Automobiles
N.V. (FCA) to Ba3, stable outlook, from B1.

RATINGS RATIONALE

Moody's upgrade of FCAB's BCA to ba2 from ba3 follows the
improvement in the creditworthiness of FCA itself. In most
respects, the rating agency considers FCAB to be of higher
intrinsic financial strength than the car manufacturer. However,
the bank's status as a captive subsidiary and the strategic role
it performs for FCA in the European market mean that its
probability of failure is closely tied to the creditworthiness of
the carmaker. As such, Moody's limits FCAB's BCA to one notch
above FCA's CFR, now Ba3.

The upgrade of FCA therefore allows a fuller recognition of
FCAB's financial strength and an upgrade in its BCA. The higher
BCA has nevertheless not affected Moody's ratings on the bank,
which are heavily influenced by CASA's creditworthiness, given a
high probability that CASA would extend extraordinary support to
FCAB in case of need. This is reflected in a one-notch uplift
from the bank's ba2 BCA, from two notches previously, which in
turn led Moody's to affirm FCAB's adjusted BCA of ba1. The
reduction of the affiliate support uplift does not reflect a
diminished support per se, but rather the convergence between
FCAB's own BCA and the adjusted BCA of its supporting affiliate
CASA.

Moody's affirmation of FCAB's deposit and issuer ratings reflects
(1) the affirmation of the bank's adjusted BCA at ba1 and (2)
Moody's unchanged view on the loss-given-failure borne by the
bank's creditors in a resolution scenario, which would be
extremely low for depositors and very low for senior unsecured
debt holders.

WHAT COULD CHANGE THE RATING UP/DOWN

FCAB's BCA is currently constrained by the carmaker's rating. An
upgrade of FCA NV would therefore likely lead to an upgrade of
the bank's BCA. Moody's could also upgrade the bank's issuer
rating in response to increasing subordinated debt, which would
enhance the protection available to senior creditors.

Conversely, Moody's could downgrade the bank's BCA as a result of
a deterioration in FCA's creditworthiness or a weakening of
FCAB's solvency profile. In addition to a lower BCA, Moody's
could also downgrade the bank's deposit and issuer ratings
following any reduction in the probability of support from CASA,
for example through the termination of the joint-venture
agreement.

LIST OF AFFECTED RATINGS AND RATING ASSESSMENTS

Issuer: FCA Bank S.p.A.

-- Upgrades:

-- Baseline Credit Assessment, upgraded to ba2 from ba3

-- Affirmations:

-- Adjusted Baseline Credit Assessment, affirmed ba1

-- Short-term Counterparty Risk Assessment, affirmed P-2(cr)

-- Long-term Counterparty Risk Assessment, affirmed Baa1(cr)

-- Issuer Rating, affirmed Baa2 Stable

-- Short-term Deposit Ratings, affirmed P-2

-- Long-term Deposit Ratings, affirmed Baa1 Stable

-- Outlook Actions:

-- Outlook, remains Stable

Issuer: FCA CAPITAL IRELAND P.L.C.

-- Affirmations:

-- Backed Senior Unsecured Medium-Term Note Program, affirmed
    (P)Baa2

-- Backed Senior Unsecured Regular Bond/Debenture, affirmed Baa2
    Stable

-- Outlook Actions:

-- Outlook, remains Stable

Issuer: FCA Capital Suisse SA

-- Affirmations:

-- Backed Senior Unsecured Regular Bond/Debenture, affirmed Baa2
    Stable

--Outlook Actions:

-- Outlook, remains Stable


ILVA SPA: EU Commission to Probe December 2015 Loan
---------------------------------------------------
Caroline Byrne at TP Week reports that the European Commission,
already investigating Ilva over EUR2 billion (US$2.27 billion) in
Italian financing, has extended its state aid probe to look into
anther loan made in December 2015.

"The Commission will also examine whether this additional loan
gave Ilva an unfair advantage over its competitors, in breach of
EU state rules," TP quotes EC as saying in a statement on May 13.

Ilva is an Italian maker.  In 2015, the Italian state took over
administration of loss-making Ilva.



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


ALTYN BANK: Moody's Assigns Ba2 Deposit Ratings, Outlook Negative
-----------------------------------------------------------------
Moody's Investors Service assigned Ba2/Not-Prime deposit ratings
to Altyn Bank JSC (Altyn). The outlook for the long-term deposit
ratings is negative. The rating agency also assigned a baseline
credit assessment (BCA) and Adjusted BCA of ba3 to the bank.
Concurrently, Moody's also assigned a Counterparty Risk
Assessments (CR Assessment) of Ba1(cr)/Not-Prime(cr) and a
National Scale Deposit Rating of A2.kz to the bank. This is the
first time Moody's has assigned credit ratings to Altyn Bank JSC.

RATINGS RATIONALE

Moody's Ba2 long-term deposit ratings on Altyn are based on the
bank's ba3 baseline credit assessment (BCA) and its assumption of
a moderate probability of public support.

Altyn's ba3 BCA reflects the bank's strong and highly resilient
financial profile with solid solvency metrics owing to high
capital adequacy, low-risk asset profile, and strong and
sustainable profitability metrics. The deposit ratings are also
underpinned by the bank's very liquid asset structure and its
full funding reliance on local depositors, which translates into
strong liquidity metrics.

Moody's said, "As of April 1, 2016, the bank reported a very
strong regulatory Tier 1 ratio of 31.7% and equity-to-assets
ratio of 12.4% (according to the National Bank) while, as of
December 31, 2015, over 70% of its total assets were risk-free or
investment-grade exposures (comprising mostly cash held with the
National Bank of Kazakhstan and investments in sovereign bonds).
At year-end 2015, Altyn reported problem loans of 3% of total
gross loans and annualized credit costs of 0.6% -- one of the
lowest levels among regional banks and reflects a relatively
low-risk profile of bank's loan exposures. Altyn also reports
strong and sustainable profitability with pre-provision income
accounting for 8.8% of average risk-weighted assets in 2015
(YE2014: 5.3%; YE2013: 5.1%). We expect the bank will be able to
maintain its strong pre-provision earnings in the coming years,
which should be more than sufficient not only to absorb any
possible increase in credit costs owing to a deteriorated
environment, but also to generate additional capital in the next
12-18 months."

Altyn's liquidity metrics are also very strong owing to its
unique composition of assets. The bank's full reliance on
customer deposits means an absence of refinancing risks, while
cash equivalents, which most recently maintained at around 70% of
all customer accounts, provide a very comfortable liquidity
buffer. Hence, a potential major threat to liquidity would come
from any significant volatility in the deposit base, which
exhibits very high concentrations. Deposits attracted from the
five largest customers accounted for 54% of all deposits as of
year-end 2015. This risk is well covered, in Moody's view, with a
large cushion of highly liquid assets; cash and cash equivalents
accounted for 74% of all customer deposits or 63% of total assets
as of year-end 2015.

Atthe same time, being a 100% domestic subsidiary of Halyk
Savings Bank of Kazakhstan (Halyk; Ba2, deposits/Ba3, senior
unsecured debt Negative, ba3 BCA) and operating in the same
jurisdiction, Altyn's BCA is constrained by contingent risks (as
reflected in Hayk's BCA of ba3). In the event of the parent's
financial difficulties, Moody's considers that the likelihood of
capital or liquidity reallocation from Altyn to the parent is
high and the regulator might not properly ring-fence Altyn. In
addition, given the implied association with the parent,
customers and counterparties might react accordingly, i.e., in
case of the parent's insolvency, by withdrawing funds form the
subsidiary bank. As a result, Altyn's BCA of ba3 is positioned at
the same level with that of the parent.

Moody's said, "Our assessment of a moderate probability of public
support for Altyn's deposit ratings reflects our assumption that
being a part of Halyk, the country's second-largest bank, Altyn's
depositors could also benefit from public support, in case of
need. Although Altyn market share is about 1.5% in deposits, we
expect that, in case of need, authorities will provide support to
limit spill-over risks on its parent (which commands a 21% market
share in deposits), thus limiting overall risks to the banking
system. At the same time, given the smaller size of Altyn and its
lower relative importance for the banking system, we assess the
likelihood of such public support to be lower than for Halyk's
depositors. As a result, our moderate assumptions of public
support for Altyn are lower than our assumption of high support
that we incorporate in Halyk's deposit ratings, and translates
into a one notch rating uplift from Altyn's BCA of ba3."

The outlook on Altyn's long-term ratings is negative, in line
with the negative outlook on the sovereign rating and on the
long-term ratings of its parent.

WHAT COULD MOVE THE RATINGS UP/DOWN

Moody's said, "As reflected in the negative outlook, we are
unlikely to upgrade Altyn's ratings in the medium term. However,
we could change the outlook to stable following a similar rating
action on its parent, Halyk. The downgrade of the long-term
ratings is possible in the case of a severe deterioration of
Altyn's financial metrics (such as an increase in leverage, a
higher risk asset profile, and/or weaker liquidity). A downgrade
of the parent's BCA would also mean increased contingent risks
for Altyn and could lead to a downgrade."

LIST OF ASSIGNED RATINGS

Assignments:

-- Baseline Credit Assessment, assigned ba3

-- Adjusted Baseline Credit Assessment, assigned ba3

-- Long-term Bank Deposits (Local Currency) , assigned Ba2
    Negative

-- Long-term Bank Deposits (Foreign Currency), assigned Ba2
    Negative

-- Short-term Bank Deposits (Local Currency), assigned NP

-- Short-term Bank Deposits (Foreign Currency), assigned NP

-- Long-term Counterparty Risk Assessment, assigned Ba1(cr)

-- Short-term Counterparty Risk Assessment, assigned Not-
    Prime(cr)

-- NSR LT Bank Deposits, assigned A2.kz

Domiciled in Almaty, Kazakhstan, Altyn Bank JSC reported (audited
IFRS) total assets of KZT324 billion at year-end 2015. The bank's
net profit was KZT6.6 billion in 2015.



=================
M A C E D O N I A
=================


MACEDONIA: Fitch Says Elections Adds Pressure on BB+ Rating
-----------------------------------------------------------
The postponement of Macedonia's elections extends the country's
political deadlock, adding to pressure on the country's 'BB+'
sovereign rating, Fitch Ratings says. The Negative Outlook on the
rating reflects the risks to political stability that emerged in
2015, as well as the rising debt-to-GDP ratio.

Macedonia's parliament last week agreed to indefinitely postpone
elections due on June 5 after a boycott by opposition parties.
June's poll had itself been rescheduled from 24 April, when
elections were meant to take place under the road-map brokered
last summer by the European Union to ease tensions after the
opposition alleged widespread government wiretapping.

Some progress has been made implementing the road-map, and
postponing the June poll, which was unlikely to have been deemed
free and fair, could help re-invigorate the process. The European
Commission said the decision created "a renewed opportunity for
the country to address a number of serious issues at the heart of
the prolonged political crisis."

However, the postponement also highlights how political
polarization remains high, and public confidence in the political
system low. The main political parties have failed to agree on
media and electoral reforms, and the president's announcement of
an amnesty for 56 people accused of involvement in wiretapping
prompted street protests last month.

Fitch said, "We acknowledged the possibility that April's
scheduled vote would not take place when we affirmed Macedonia at
'BB+/Negative' in February. This week's postponement maintains
uncertainty over when elections will take place, whether they
will be free and fair, whether the losers accept the result, and
if the resulting administration can enact measures to improve
governance.

"Healthy economic growth has supported the rating (we forecast
real GDP to increase 3.6% this year and next year). However, the
uncertain political environment could affect economic activity,
as was seen in August last year when the government adopted a
supplementary budget and increased spending as growth slowed on
rising political volatility. Despite shortfalls in VAT and
personal income tax receipts, better-than-expected revenue
performance kept the 2015 fiscal deficit within the supplementary
budget's target of 3.6% of GDP. Political uncertainty has
increased government borrowing costs.

"Deficits are pushing up Macedonia's debt burden, and we forecast
the general government debt ratio to rise to 41.1% of GDP this
year, up from 38% at end-2015. The continuing political crisis
makes it less likely that a credible medium-term fiscal
consolidation program consistent with stabilizing the ratio, and
incorporating structural policy measures, emerges."

Fitch's next scheduled review of Macedonia's rating is on August
19.



=============
M O R D O V A
=============


MORDOVIA REPUBLIC: Moody's Withdraws B3 Currency Issuer Ratings
---------------------------------------------------------------
Moody's Investors Service has withdrawn Mordovia Republic's long
term foreign and local-currency issuer ratings (B3) and local-
currency senior unsecured rating (B3). At the time of the
withdrawal the ratings carried a negative outlook.

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



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


CADOGAN SQUARE VII: Moody's Assigns Ba2 Rating to Class E Debt
--------------------------------------------------------------
Moody's has assigned definitive ratings to five classes of notes
issued by Cadogan Square CLO VII B.V.:

-- EUR241,000,000 Class A Senior Secured Floating Rate Notes due
    2029, Definitive Rating Assigned Aaa (sf)

-- EUR44,000,000 Class B Senior Secured Floating Rate Notes due
    2029, Definitive Rating Assigned Aa2 (sf)

-- EUR28,000,000 Class C Senior Secured Deferrable Floating Rate
    Notes due 2029, Definitive Rating Assigned A2 (sf)

-- EUR17,500,000 Class D Senior Secured Deferrable Floating Rate
    Notes due 2029, Definitive Rating Assigned Baa2 (sf)

-- EUR27,500,000 Class E Senior Secured Deferrable Floating Rate
    Notes due 2029, Definitive Rating Assigned Ba2 (sf)

RATINGS RATIONALE

Moody's definitive rating of the rated notes addresses the
expected loss posed to noteholders by the legal final maturity of
the notes in 2029. The definitive ratings reflect the risks due
to defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure. Furthermore, Moody's
is of the opinion that the collateral manager, Credit Suisse
Asset Management Limited ("CSAM"), has sufficient experience and
operational capacity and is capable of managing this CLO.

Cadogan Square CLO VII B.V. is a managed cash flow CLO with a
target portfolio made up of EUR400,000,000 equivalent par value
of mainly European corporate leveraged loans. At least 90% of the
portfolio must consist of senior secured loans or senior secured
bonds, and up to 10% of the portfolio may consist of second-lien
loans, unsecured loans, mezzanine obligations and high yield
bonds. The portfolio may also consist of up to 12.5% of fixed
rate obligations and between 0% and 5% of principal hedged assets
and unhedged assets denominated in GBP. The portfolio is expected
to be around 70% ramped up as of the closing date and to be
comprised predominantly of corporate loans to obligors domiciled
in Western Europe. The remainder of the portfolio will be
acquired during the six month ramp-up period in compliance with
the portfolio guidelines.

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

In addition to the five classes of notes rated by Moody's, the
Issuer issued EUR53.65m of subordinated notes, which have not
been rated.

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

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

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



=============
R O M A N I A
=============


ASTRA ASIGURARI: Liquidator to Start Layoffs Next Month
-------------------------------------------------------
Romania Insider reports that KPMG Restructuring, the liquidator
of the bankrupt Romanian insurer Astra Asigurari, has announced
to union leaders that it would start layoffs next month.

Astra still had over 500 employees in the subscription department
at the end of November 2015, Romania Insider relays, citing local
Profit.ro.

The liquidator was planning to transfer the business, as over
1 million policies were still valid, Romania Insider discloses.
However, the announcement made to the union leaders on the future
layoffs means that the plan to transfer the business has failed,
Romania Insider notes.

According to Romania Insider, the Financial Supervisory Authority
has selected KPMG as the insurer's liquidator also because of its
strategy to valorize the Astra assets, keep the portfolio and
transfer it to another insurer.



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


RUSHYDRO PJSC: Fitch Affirms 'BB+' LT Issuer Default Ratings
------------------------------------------------------------
Fitch Ratings has affirmed Russia-based utility company PJSC
RusHydro's (RusHydro) Long-Term Foreign and Local Currency Issuer
Default Ratings (IDR) at 'BB+'. The Outlook is Negative.

The Negative Outlook reflects Fitch's expectation of
deterioration in RusHydro's credit metrics over 2016-2019, mostly
due to an extensive capex program, as well as the recently
announced increased dividend payout ratio in 2016. This could
result in the company breaching Fitch's negative rating guideline
of funds flow from operations (FFO) adjusted net leverage above
3.0x over 2016-2019, implying a possible downgrade.

Fitch said, "However, FFO adjusted net leverage may remain within
our rating guideline on the back of equity injection indirectly
from the state, under which RusHydro expects to receive
RUB85billion, which would reduce its Far East subsidiary's debt
burden and consequently improve RusHydro's consolidated leverage.
We may downgrade the ratings if the equity injection does not
materialize during 2016 and leverage exceeds our rating
guidance."

RusHydro's IDRs continue to incorporate a single-notch uplift for
state support from its standalone rating of 'BB', due to strong
strategic, operational and, to a lesser extent, legal ties
between the company and its majority shareholder, the Russian
Federation (BBB-/Negative).

KEY RATING DRIVERS

Weaker Credit Metrics Expected

Fitch said, "We expect RusHydro's credit metrics to deteriorate
over the medium term. We expect FFO adjusted net leverage to
exceed our negative rating guidance of 3.0x (2015: 2.9x) in 2016-
2019 and FFO interest coverage to decrease to below 3.5x (2015:
3.3x) over 2016-2019. This is due to a heavy investment program
and increased dividend payments, which in turn will result in
negative free cash flow (FCF) of around RUB25 billion on average
over 2016-2019."

In April 2016, the Russian government issued a decree obliging
major state-owned companies to pay 50% of the highest earnings
base (RAS or IFRS) as dividends. This may result in a doubling of
dividend payout in 2016 and further periods for RusHydro from the
current 25% on average in 2014-2015, which will add pressure to
the credit metrics.

Capex Subject to Market Conditions

Fitch said, "RusHydro has an extensive investment program of
RUB287 billion (including value-added tax (VAT)) over 2016-2018
that we expect will be partially debt-funded. RUB76.7 billion
relates to RAO Energy System of the East Group (RAO ES of East)
and RUB49.6 billion relate to key Far East projects (mostly pre-
financed by RUB50 billion equity injection received from the
state in 2012).

"However, as the company has demonstrated in the past, we expect
RusHydro to scale back its investment plan if financial metrics
are under pressure especially in the context of increased
dividend payments in 2016-2019. In 2015 capex fell by more than
20% yoy to RUB79billion (net of VAT) from an initially budgeted
RUB100billion."

State Support Continues

RusHydro's ratings continue to benefit from a single-notch uplift
for state support, due to the strong strategic, operational and,
to a lesser extent, legal ties between the company and the state.
RusHydro continues to receive tangible state support. In 2012-
2015, the company received tangible state support of around
RUB100billion, including a RUB50 billion equity injection for the
construction of four thermal power plants in the Far East and
direct subsidies of RUB51 billion as compensation for low tariffs
in the Far East. In 2012, RusHydro was included in the list of
strategic enterprises. At end-May 2014, President Vladimir Putin
signed a decree stipulating that direct state ownership in
strategic enterprises must not fall below 60.5%.

The consolidation of RusHydro's 69% stake in the financially
weaker RAO UES East in 2011 worsened the company's operating and
financial profile, underlining the negative implications of state
involvement.

Potential Equity Injection

At end-2015, RusHydro and VTB Bank signed a cooperation agreement
to refinance the debt of RAO ES of East. The amount of new equity
injection is envisaged to be RUB85billion. If materialized, the
equity injection would be positive for RusHydro's credit metrics
and would improve the company's leverage metrics significantly.
Fitch expects the proceeds to be used to repay existing loans in
RAO ES of Far East.

Fitch said, "We estimate that the new equity injection will
reduce FFO adjusted net leverage to below 3.0x on average for
2016-2019, which would be enough to ensure credit metrics remain
within our rating guidelines even with a higher dividend payout
and substantial capex needs. However, at this stage uncertainties
still exist regarding the timing and terms of the equity
injection. Thus we do not incorporate the potential equity
injection into our rating case."

'BB' Standalone Rating

RusHydro's standalone rating of 'BB' continues to reflect the
company's solid market position as a leading, low-cost
electricity producer in Russia due to a large portfolio of hydro
power plants with installed electric power capacity of about
39GW. The standalone profile also reflects its exposure to
regulated tariffs via its Far East division, which will remain a
drag on profitability and cash flows. The standalone rating also
factors in an uncertain regulatory framework in the medium-term
and corporate governance limitations in the operating environment
in Russia.

Fitch said, "Our forecasts of RusHydro's 2016-2019 EBITDA are
based on our expectations that tariffs will be increased below
CPI whereas a large part of the operating costs (e.g. fixed
costs) will increase at the rate of CPI. The resulting negative
impact is partially offset by new capacities coming online, as
well as favorable water-flow conditions both in European and
Siberian parts of Russia in 1Q16, resulting in a 37% yoy EBITDA
increase in the company's generation segment. We estimate EBITDA
margin to remain flat over the rating horizon.

"However, it will be challenging for FFO adjusted net leverage
and FFO interest coverage to remain within our current rating
guidelines, with the large capex program and increased dividend
payments without equity injection from the state. We may
therefore downgrade the ratings if the equity injection does not
materialize in 2016."

Regulatory Framework
The Russian regulatory regime for the utilities sector suffers
from a limited track record of consistent implementation, which
is less transparent and more unpredictable than regulatory
regimes in western Europe. Expected weak growth of the Russian
economy in 2016, along with the government's social
responsibilities, will continue to exacerbate the regulatory and
political risks that weigh on Russian utilities' business and
financial profiles. The unpredictability of the Russian
regulatory framework in the power markets constrains Russian
utilities' standalone profiles to speculative-grade.

KEY ASSUMPTIONS

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

-- Net power output growth at CAGR of below 3% over 2016-2019
-- Electricity and heat tariffs and power prices increase below
    CPI over 2016-2019
-- Dividend payout ratio of 50% for 2016-2019
-- 12.5% interest rate for new debt
-- 20% reduction of capex in 2016 compared with the current
    investment program

RATING SENSITIVITIES

Negative: Future developments that could lead to a downgrade
include:

-- The inability to maintain FFO adjusted net leverage below
    3.0x and FFO interest cover above 5x by 2016, due to absence
    of equity injection or other forms of state support, or a
    more ambitious capex program.

Positive: Fitch said, "the Outlook is Negative and we therefore
do not anticipate events leading to an upgrade." Future
developments that could lead to a revision of the Outlook to
Stable:

-- Reduced opex and capex or an equity injection allowing FFO
    interest cover to rise above 5x and FFO adjusted net leverage
    to fall below 3.0x.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity

At end-2015, RusHydro had cash and deposits of around RUB49.2
billion (excluding the remaining RUB17.1billion of cash injection
received from the state in December 2012 for financing the Far
East projects), which in addition to available credit lines
totalling more than RUB90 billion, including from such large
state-owned banks as Sberbank (BBB-/Negative) and VTB Bank, is
sufficient to cover short-term debt of RUB62.2 billion.

Fitch expects RusHydro to continue to generate negative FCF in
the medium term, owing to its substantial capex program, which
will, consequently, lead to new external funding needs. However,
RusHydro has flexibility to cut back its investment program in
the event of a lack of available funding or material
deterioration of credit metrics.

Limited FX Exposure

RusHydro has limited exposure to foreign currency risks; at end-
2015, around 9% of RusHydro's debt was denominated in foreign
currencies, mainly in EUR, while almost all its revenues are in
the local currency.

FULL LIST OF RATING ACTIONS

JSC RusHydro

Long-Term Foreign and Local Currency IDRs affirmed at 'BB+',
  Outlook Negative

Long-Term National Rating affirmed at 'AA(rus)', Outlook
  Negative

Local currency senior unsecured rating affirmed at 'BB+'

RusHydro Finance Limited, guaranteed by JSC RusHydro

Local currency senior unsecured rating assigned at 'BB+'



===============
S L O V E N I A
===============


PEKO: Creditors Register EUR8.1-Mil. Claims
-------------------------------------------
STA reports that receivership at Peko entered a new stage as the
administrator accepted EUR8.1 million of claims registered
against the company by its creditors.

Peko is a Slovenian shoemaker.



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


PYMES SANTANDER 9: DBRS Confirms CCC Rating on Series B Notes
-------------------------------------------------------------
DBRS Ratings Limited confirmed its ratings on the following notes
issued by FTA PYMES SANTANDER 9 (the Issuer):

-- EUR155,188,664.45 Series A Notes: Confirmed at AA (sf).
-- EUR168,300,000.00 Series B Notes: Confirmed at CCC (high)
    (sf).

The transaction is a cash flow securitization collateralized by a
portfolio of bank loans originated by Banco Santander S.A.
(Santander or the Originator) to small and medium-sized
enterprises (SMEs) and self-employed individuals based in Spain.

The rating on the Series A Notes addresses the timely payment of
interest and the ultimate payment of principal payable on or
before the Legal Maturity Date in January 2041. The rating on the
Series B Notes addresses the ultimate payment of interest and the
ultimate payment of principal payable on or before the Legal
Maturity Date in January 2041.

The rating action reflects an annual review of the transaction
and is based on the following analytical considerations as
described more fully below:

-- Portfolio performance, in terms of delinquencies and
    defaults, as of the April 2016 payment date.
-- Updated Weighted-Average Life and Recovery Rates assumptions.
    Recovery Rates incorporate the updated Market Value Declines
    introduced by the recently published "European RMBS Insight
    Methodology" and "European RMBS Insight: Spanish Addendum"
   (May 17, 2016).
-- The ability of the transaction to withstand stressed cash
    flow assumptions and repay investors according to the terms
    in which they have invested.
-- The current available credit enhancement to the notes to
    cover the expected losses assumed in line with the AA (sf)
    and CCC (high) (sf) rating levels for the Series A Notes and
    Series B Notes, respectively.

The Series A Notes are currently at 46.79% of their initial
balance after two years since closing. Given this deleveraging,
the current available credit enhancement for the Series A and B
Notes has increased considerably, while the transaction
performance is in line with DBRS's expectations.

As of the April 2016 payment date, the cumulative balance of
written-off loans was 1.921% of the original collateral balance,
as per the transaction definition, and delinquencies greater than
90 days were 1.135% of the current collateral balance.

The portfolio annualized probability of default (PD) used has not
changed (10.63%).

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


PYMES SANTANDER 11: DBRS Confirms C(sf) Rating on Series C Notes
----------------------------------------------------------------
DBRS Ratings Limited confirmed and upgraded its ratings on the
following notes issued by FTA PYMES SANTANDER 11 (the Issuer):

-- EUR561,430,167.49 Series A Notes: Upgraded to A (high) (sf)
    from A (sf).

-- EUR893,700,000.00 Series B Notes: Confirmed at CCC (sf).

-- EUR178,800,000.00 Series C Notes: Confirmed at C (sf).

DBRS has also removed the Under Review with Positive Implications
(UR-Pos.) designation for all ratings.

The transaction is a cash flow securitization collateralized by a
portfolio of term loans and credit lines originated by Banco
Santander, S.A. (Banco Santander or the Originator) to small and
medium-sized enterprises (SMEs) and self-employed individuals
based in Spain.

The rating on the Series A Notes addresses the timely payment of
interest and the ultimate payment of principal payable on or
before the Legal Maturity Date in August 2059. The ratings on the
Series B and Series C Notes address the ultimate payment of
interest and the ultimate payment of principal payable on or
before the Legal Maturity Date in August 2059.

The rating action reflects an annual review of the transaction
and concludes the UR-Pos. status of the ratings. The ratings were
placed UR-Pos. following a material update to the methodology
DBRS applies to monitor the counterparty risks of the transaction
(see "Legal Criteria for European Structured Finance
Transactions," published on 19 February 2016).

This methodology incorporates DBRS's new Critical Obligations
Ratings, which were introduced in the "Critical Obligations
Rating Criteria" methodology published on 2 February 2016, and
also provides more granular rating levels for account bank
institution replacements and eligible investments.

The rating actions on the Series A, Series B and Series C Notes
are based on the following analytical considerations as described
more fully below:

-- Portfolio performance, in terms of delinquencies and
    defaults, as of the February 2016 payment date.

-- Updated and more granular rating levels introduced by the
    "Legal Criteria for European Structured Finance Transactions"
    for account bank institution replacement triggers.

-- Updated Weighted-Average Life and Recovery Rates assumptions.
    Recovery Rates already incorporates the updated Market Value
    Declines introduced by the recently published "European RMBS
    Insight Methodology" and "European RMBS Insight: Spanish
    Addendum" (17 May 2016).

-- The ability of the transaction to withstand stressed cash
    flow assumptions and repay investors according to the terms
    in which they have invested.

-- The current available credit enhancement to the notes to
    cover the expected losses assumed in line with the A (high)
    (sf) and CCC (sf) rating levels for the Series A Notes and
    Series B Notes, respectively.

The Series C Notes were issued for the purpose of funding the
Reserve Fund (RF) and the rating is based upon DBRS's review of
the following considerations:

-- The Series C Notes are in the first loss position and, as
    such, are highly likely to default.

-- Given the characteristics of the Series C Notes as defined in
    the transaction documents, the default most likely would only
    be recognized at the maturity or early termination of the
    transaction.

As of the February 2016 payment date, the cumulative balance of
written-off loans was 0.07% of the original collateral balance,
as per the transaction definition, and delinquencies greater than
90 days were 0.64% of the current collateral balance.

Credit enhancement has increased considerably as a result of the
amortization of the Series A Notes, currently at 20.94% of their
initial balance. Credit enhancement for the Series A Notes
(76.58%) is provided by the subordination of the Series B Notes
and the RF. The Series B Notes benefit from the credit
enhancement provided by the RF, currently fully funded at
EUR178.8 million, and only allowed to amortize after the first
two years if certain conditions relating to the performance of
the portfolio and deleveraging of the transaction are met.

The portfolio's two distinct probability of default (PD) rates
that have been used for loans classified as restructured (15.50%)
and as normal loans (3.40%) have not changed.

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



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


KHARKOV: Fitch Affirms CCC Long-Term Issuer Default Ratings
-----------------------------------------------------------
Fitch Ratings has affirmed the Ukrainian City of Kharkov's Long-
Term Foreign and Local Currency Issuer Default Ratings (IDR) at
'CCC', and Short-Term Foreign Currency IDR at 'C'. Fitch has also
affirmed the city's National Long-Term rating at 'A+(ukr)' with a
Negative Outlook.

The ratings are constrained by the ratings of Ukraine (CCC) and a
weak institutional framework. The ratings also reflect Fitch's
unchanged base case scenario regarding the city's satisfactory
budgetary performance and low debt over the medium term.

The Negative Outlook on the National Rating reflects a volatile
macro-economic environment in Ukraine and weak prospects of an
economic recovery over the medium term.

KEY RATING DRIVERS

The weak institutional framework governing Ukrainian local and
regional governments remains a constraint on the city's ratings.
The framework is characterized by frequent changes to the
allocation of revenue and expenditures and by a lack of clarity,
hindering the long-term development and budget planning of local
and regional governments in Ukraine.

The City of Kharkov is currently free from external debt
obligations. In 2015, the city repaid its outstanding bank loan
of UAH294 million and has no plans to raise new debt over the
medium term. Weak national debt capital markets also limit access
to funding, indirectly allowing the city to maintain a balanced
budget.

Fitch said, "Our base case scenario is for the city's budgetary
performance to remain satisfactory over the medium term with an
operating balance at above 15% of operating revenue. A mild
budget deficit will be funded by the city's accumulated liquidity
(2015: UAH752m). Downside risks stem from unpredictable fiscal
changes, the overall weakness of sovereign public finances and a
volatile economic environment in Ukraine. Fitch projects the
Ukrainian economy will grow 1%-2% in 2016-2017 after contracting
11.6% in 2015 and 6.8% in 2014, indicating a slow recovery of the
city's economy."

In 2015, Kharkov recorded an operating balance of 25% (2014: 10%)
of operating revenue and a surplus of 7% of total revenue (2014:
deficit 4%). The central government made significant amendments
to Ukraine's budget and tax codes, leading to a sharp increase in
operating revenue for the city in 2015. The growth was driven by
a 22% increase in tax revenue resulting from new taxes, higher
tax rates and high national inflation (2015: 48%), and an
increase in current transfers from the central government to
finance the city's new social responsibilities.

Kharkov's exposure to contingent risk has increased as public
sector debt doubled during 2011-2015 to UAH565m. The debt stock
increase is mainly attributable to some utilities companies and
the city's park, with some exposure to forex risk. Most of the
city's public sector entities (PSEs) are loss-making and depend
on subsidies to sustain operations. In 2015, compensating
subsidies and capital injections granted to PSEs totalled about
UAH400m, or 5% of the city's operating revenue. It should be
noted that disclosure of PSE's performance in 2015 is limited to
the largest 15 PSEs out of 72 PSEs in the city.

RATING SENSITIVITIES

A downgrade of the sovereign's IDRs would lead to a corresponding
action on the city's IDRs. In the absence of a sovereign
downgrade, significant deterioration of Kharkov's credit profile
could also lead to a negative rating action.

A sovereign upgrade would be reflected in the City of Kharkov's
ratings. However, the ratings will likely remain low, given
significant country risks and Ukraine's 'CCC' Country Ceiling.



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


ASCENTIAL PLC: Fitch Affirms BB- LT Issuer Default Rating
---------------------------------------------------------
Fitch Ratings has revised the Outlook on Ascential plc's
(Ascential) Long-Term Issuer Default Rating (IDR) to Positive
from Stable and affirmed the IDR at 'BB-'.

Fitch said, "The rating actions follow Fitch's periodic review of
Ascential, including an update to our central rating case
forecasts following publication of the company's FY15 results;
which confirmed solid underlying performance, strong cash flow
and organic deleveraging. Ignoring the effects of February's IPO,
the business delivered 0.4x of organic deleveraging on a funds
from operations (FFO) adjusted net leverage basis in 2015. Fitch
expects Ascential to reach our upgrade guidance of FFO adjusted
net leverage below 2.2x within the next 12-18 months. This
expectation is underpinned by reduced interest costs following
the IPO and bank refinancing, cash flow visibility and revised
management guidance on its net debt/EBITDA target of 2.0x."

The company benefits from a well-defined portfolio of events and
information services businesses, which enjoy high renewal rates
and high subscription revenues. A portfolio focus on high margin
must-attend events or must-have data-analytics is likely to
provide a degree of resilience through economic cycles, although
Fitch believes revenue and margin compression would be felt in a
downturn. Scalable cost structures, the solid, albeit somewhat
niche market position of its businesses, and consistent
underlying cash flow performance, moderate cyclical risks.

KEY RATING DRIVERS

Successful IPO and Associated Deleveraging

Fitch said, "Ascential achieved a successful IPO in February
raising gross proceeds of GBP280 million amid what were difficult
general market conditions. A public float of 35% allowed the
company's primary sponsors to make a partial exit from the
business, while around GBP183 million of proceeds were retained
in the business and pro-forma net debt/EBITDA reduced to
management's initial target of 2.5x. Following the transaction we
upgraded Ascential's ratings by two notches, reflecting our view
of visible cash flow and expected FFO adjusted net leverage of
2.5x by YE16.

"Solid 2015 performance and developments in 2016, including
management statements guiding to a revised net debt/EBITDA target
of 2.0x, and the successful launch of Money 20/20 Europe, have
led us to upgrade our central rating case. We envisage FFO net
leverage improving to around 2.3x by YE16, with further
deleveraging envisaged in subsequent years."

Diversified Portfolio, Strong Underlying Performance

Ascential outperformed Fitch's central rating case for 2015 on
key measures, the business delivering strong performances across
its core Exhibitions & Festivals and Information Services
divisions, strong cash flow performance and solid deleveraging.
Organic revenue and EBITDA growth were 6% and 14%, respectively,
while the company continued to invest in product development and
lateral events - a good example being the 2016 launch of Money
20/20 Europe.

Under its pre-IPO capital structure, Ascential ended 2015 with
FFO net leverage of 4.4x, outperforming Fitch's rating case
expectation of 4.8x, driven by strong underlying cash flow. Fitch
considers business strategy to be well defined, with a portfolio
approach focused on achieving leading market positions in key
events and must-have type business analytics and information
services.

Transparent, Conservative Finance Policy

The company listed with an initial net debt/EBITDA target of
2.5x. Since then management has stated a desire to reduce this
metric to 2.0x, which it feels would be more consistent with its
larger peers. A stated dividend payout ratio of 30% and
materially reduced interest costs following the company's
refinancing and reduced debt levels, provide visibility and scope
for further free cash flow improvement. Fitch currently expects
the company's free cash flow margin (cash flow after capex and
dividend to revenues) to increase to around the mid-teens in 2016
from high single digit levels in 2015.

Fitch said, "while the relative nascence of both the rating and
public listing provide some caution, Fitch considers transparency
over financial policy to be positive and that the kind of cash
flow performance and leverage envisaged in our rating case are
strong for the rating."

Cyclicality, Cost Flexibility
Fitch considers Ascential's businesses to be well established and
resilient. While its businesses are somewhat niche, Fitch
believes management understands the need to establish leading
market positions in brands with strong retention rates and that
are typically considered "must-have" in nature. Its top five
products accounted for around 53% of sales in 2015 and are market
leading and high margin. Acquisitions such as Stylesight and
Money 20/20 have proven well-chosen and positive for results,
while the ability to launch derivative or adjacent events offers
growth opportunity; a good example being the 2016 launch of Money
20/20 Europe. Events revenues are considered somewhat cyclical.
However, they tend to have low fixed costs, meaning that costs
can be matched to revenue weakness in a downturn. Margins across
the sector tend therefore to be resilient in a downturn. Print
advertising accounted for just 4% of 2015 group revenues, which
Fitch views as very limited.

KEY ASSUMPTIONS

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

-- Mid-single digit revenue growth in the events division in
    2018; slightly lower growth in the following two years; 3%
    growth in information services through 2018.
-- EBITDA margin expanding from 28.5% in 2015, reaching around
    31% by 2018.
-- Cash interest forecast based on initial matrix pricing under
    the new bank facility and reflecting the reduced level of
    gross debt.
-- Neutral to positive working capital cash flows over the next
    three years
-- Dividends in line with the 30% pay-out ratio and weighting of
    half yearly payments as outlined in the IPO prospectus.
-- Acquisition payments reflecting expected earn-outs of around
    GBP10 million per year in 2016-18.

RATING SENSITIVITIES

Future developments that may, individually or collectively, lead
to positive rating action include:

-- FFO adjusted net leverage expected to be consistently equal
    to or below 2.2x.
-- FFO fixed charge cover expected to be consistently greater
    than 4.0x.
-- Continued solid FCF.
-- Sustained market position and operating environment.

Future developments that may, individually or collectively, lead
to negative rating action include:

-- FFO adjusted net leverage expected to be consistently greater
    than 3.5x.
-- FFO fixed charge cover expected to be consistently below
    3.0x.
-- Significant deterioration in free cash flow.
-- Significant and sustained deterioration in EBITDA and cash
    flow margin in the event of a severe market downturn; some
    margin compression would be expected but operational gearing
    and scalable costs are expected to moderate impact on
    profitability.

LIQUIDITY

Liquidity is healthy and provided by balance sheet cash and the
company's recently signed and undrawn GBP95 million revolving
credit facility. Underlying cash flow is strong and expected to
continue to support a solid liquidity position.


BHS GROUP: Directors, Advisers Face Inquiry Into Collapse
---------------------------------------------------------
Mark Odell at The Financial Times reports that MPs were set to
start grilling the top management of BHS's former owners along
with their City advisers on May 23 as the company's 11,000
workers wait on administrators to conclude a sale of the
struggling retail chain.

According to the FT, a joint session of the Work and Pensions and
Business, Innovation and Skills Committees was set to continue
the parliamentary inquiry into the collapse of the high street
chain, starting with five partners from law firms Nabarro, and
Eversheds and three of the "Big Four" accountancy firms Deloitte,
KPMG and PwC.

MPs were expected to focus on the advice they gave on the BHS
pension scheme to Taveta, the investment vehicle controlled by
Sir Philip Green and family, which holds their UK retail
interests, the FT discloses.  These included BHS before the
retailer was sold for GBP1 last year to a consortium led by
former bankrupt and racing driver Dominic Chappell, the FT notes.

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


BYYD TECH: SFP to Conducts Sale of Assets After Administration
--------------------------------------------------------------
Nationwide insolvency practitioners SFP is currently undertaking
the sale of the assets of Byyd Tech, providers of a platform for
the provision of mobile advertising, after the firm went into
administration last month.

Despite a turnover of about GBP7.5 million in 2015, Byyd Tech
experienced mounting debts and financial loss totalling GBP1.95
million.

SFP's Simon Plant and Daniel Plant -- both licensed members of
the Insolvency Practitioners Association (IPA) -- instructed
agents to market the business for sale in order to seek
interested parties for a sale of the Company's business and
assets as a going concern.  The Joint Administrators traded the
business whilst the marketing process was undertaken. As part of
cost cutting measures, several of the staff were made redundant
during this time.

The joint Administrators were able to pay the remaining staff as
they continued to trade the business while seeking to sell the
business as a going concern.

Despite early positive signs and several interested parties
showing a strong interest in the business and assets, a
successful sale could not be concluded and the deadline for
offers has now expired.  The Company has since ceased to trade
and skeleton staff have been retained to undertake an orderly
wind down of the Company’s affairs.

Simon Plant says every avenue to sell the business has been
explored: "Potential investors were not comfortable with the
value of investment required to pay down outstanding debts,
neither were they convinced about Byyd Tech's business model
going forward.  Despite strong interest, with one party in
particular contributing a sum towards trading costs in return for
an exclusive period, the opportunity was ultimately not strong
enough to attract an offer."


MOTO VENTURES: Fitch Affirms B LT Issuer Default Rating
-------------------------------------------------------
Fitch Ratings has affirmed Moto Ventures Limited Long-Term Issuer
Default Rating (IDR) at B. The Outlook is Stable. Fitch has also
affirmed the rating of Moto Finance Plc's GBP175 million senior
secured fixed-rate notes due 2020 at B+/RR3 (Recovery Rating).

The IDR affirmation reflects Moto's stable business model and
favorable operating environment as well as the company's weak
financial metrics.

Moto has a solid business profile for its rating, but high
financial leverage continues to constrain the IDR, mainly due to
drawdowns on the capex facility and slow long-term earnings
growth. The possibility of high dividend payouts (although
subject to lock-up mechanisms and covenants) reflects a somewhat
aggressive financial policy, which leads to mildly rising
leverage over time, based on Fitch's own projections.

Moto is a leader in the UK motorway service area (MSA) market,
benefits from stable cash flow generation and regulated operating
environment with limited competition. While future earnings
growth is dependent primarily on traffic and GDP growth, the
ratings also reflect the company's demonstrated ability in
renegotiating contracts with high street brands and pricing
flexibility.

Interest cover, as measured by funds from operations (FFO) fixed
charge cover, has improved and is forecast to remain above 2x
over the rating horizon to 2019. The improved coverage reflects
lower interest costs following the 2015 refinancing. This,
together with minimal working capital needs, helps ensure the
business remains structurally cash-generative.

KEY RATING DRIVERS

Stable Business Model

Earnings are fundamentally dependent on traffic volumes and GDP
growth, as typically, there is little growth in average spend per
customer (1.3% in 2015). Despite the dependence on exogenous
macroeconomic factors, including consumers' discretionary
spending, Moto's business model has been stable, with EBITDA
unaffected by the 2008-2009 economic downturn in the UK and the
recent sustained fall in oil prices.

Fitch said, "Despite a 3.6% decline in 2015 revenues (primarily
due to the sustained decline in oil prices), EBITDA improved 14%,
driven by a 5.8% increase in like-for-like non-fuel revenue
growth and a decline in the cost of fuel. However, we expect to
see a normalization in profit growth going forward."

Strong Cash-flow Generation

The primary uses of cash are interest payments, followed by
capex. Working capital needs are minimal given the nature of the
business. Funds from operations (FFO) generation has been strong
over the last three years, and is forecast by Fitch to remain
robust over the next two to three years.

Fitch said, "A non-amortizing, back-loaded bullet debt structure
also helps preserve cash in the business. We estimate pre-
dividend free cash flow (FCF) to be 3.5%-4% in 2016-2019, partly
aided by diminishing interest costs following the 2015
refinancing. However, we do not expect the overall cash balance
to increase with earnings growth as dividends are expected to be
paid, starting in 2016. Dividend payments will create a
continuously negative FCF profile in an otherwise cash-generative
business model."

Leading UK MSA Operator

Moto commands a significant market share (of around 36%), well
over its two closest competitors Roadchef and Welcome Break. It
operates in a largely mature sector with an oligopolistic
structure. High barriers to entry, coupled with high start-up
costs and long lead times in obtaining planning permission for
new MSAs, mean that existing operators hold largely static market
shares. This is an important supportive factor for the ratings.

Regulated Operating Environment

The MSA sector in the UK is highly regulated, with the majority
of regulations governing the establishment of new locations. The
minimum requirements include 24-hour access to certain goods and
services such as fuel, drink, restroom and free parking for two
hours, all of which limit the entry of new participants.

Recent regulatory changes have resulted in an increased range of
retail offers and commercial opportunities including alcohol for
both off- and on-sale; the removal of retail and gaming area
square footage restriction; removal of minimum distance
restriction and the increase of alternative-use opportunities,
providing there is no increase in net overall traffic. These
recent changes have brought about increased commercial
opportunities for MSAs within the framework.

Slow Deleveraging; Limited Growth Potential

The UK motorway network is mature, and despite the recent
loosening of regulation governing MSAs, there are only a few
potential sites for new MSAs. The offerings also tend to be
homogenous among the top three operators.

Fitch said, "Recent operating performance (2015) shows that
continued Greggs and M&S roll-outs have resulted in EBITDA growth
over the prior year. Moto's FFO adjusted gross leverage reduced
to 5.7x in 2015 from 6.2x in 2014 due to strong EBITDA growth.
However, we expect leverage to increase due to a combination of
debt incurred for contractually required capex, coupled with low
single-digit earnings growth."

Large Proportion of Freehold Sites

Moto has the greatest number of freehold sites (21) among the top
three operators. Of the remaining 32 sites, four are long-
leasehold sites. The freehold and long-leasehold sites together
represent approximately 60% of EBITDA. Moto has another 28 short
leasehold sites, with 10 at small nominal rents. The structure of
the asset portfolio limits Moto's exposure to rent increases.
Moto's asset base also underpins Fitch's expectations of
recoveries for financial creditors in the event of default.

Above-average Recovery Prospects

Fitch said, "In line with the going concern restructuring
approach under Fitch's bespoke recovery analysis, we expect
above-average recoveries for bondholders in case of default. This
reflects Moto's fairly low earnings volatility, high market share
compared with key competitors and reasonable asset quality, given
the location of the MSAs across the company's strategic road
network. This is reflected in Fitch's assumptions of a moderate
discount to the most recent EBITDA (25%) and the maintenance of a
high distressed enterprise value/EBITDA multiple of 7.5x."

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for Moto include
the following:

-- Revenue CAGR (excluding fuel) of 1.5% over 2016-2019
-- EBITDA margin (excluding fuel) increasing to 20% from 18.9%
    over the same period
-- Capex and dividend payout as per management guidance
-- FFO adjusted gross leverage increasing to 6.6x at end-2018
    from 6.4x at end-2016, driven by capex drawdowns and slow
    long-term earnings growth
-- Adequate liquidity over the rating horizon

RATING SENSITIVITIES

Positive: Future developments that could lead to positive rating
actions include

-- Decline in FFO adjusted gross leverage to 6.0x or below on a
    sustained basis
-- FFO fixed charge cover trending towards 2.0x
-- Positive and sustained FCF generation supported by steady
    profitability

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

-- Evidence of an increasingly aggressive financial policy
    translating into FFO adjusted gross leverage above 7.0x on a
    sustained basis
-- FFO fixed charge cover sustained below 1.5x
-- Adverse change in fuel contract terms leading to a the loss
   of cash margin flexibility

LIQUIDITY

Fitch expects refinancing risks to be manageable following the
2015 refinancing, which extended debt maturities to 2020.
Liquidity remains adequate with strong FCF generation, access to
a revolving credit facility of GBP10 million and a GBP50 million
capex facility.

Fitch said, "The non-amortizing profile of the loans, coupled
with the bullet maturity of the bond, helps preserve cash in the
business. We expect dividend distributions to take place from
2016 onwards. Factoring in such payouts, Fitch estimates the
company would maintain reasonable cash balances but expects
moderately negative post-dividend FCF from 2016."


TATA STEEL: Excalibur Steel in Rescue Talks with Liberty House
--------------------------------------------------------------
The Irish Times, citing industry sources, reports that Excalibur
Steel, a management buyout group interested in purchasing Tata
Steel's British steelmaking operations, is ready to lend its
support to rival bidder Liberty House.

Tata said in March, it wanted to sell its UK steel operation,
which has been hit by cheap Chinese imports, rising costs and
weak demand, The Irish Times recounts.  The deadline for final
bid submissions was May 23, The Irish Times notes.

According to The Irish Times, a decision on how to proceed with
the sale is to be taken at a meeting of the Tata board in Mumbai
on Wednesday, May 25.

The sources said talks between Excalibur and Liberty over a
possible collaboration to rescue the steel-making operation are
ongoing, The Irish Times relates.

Tata Steel is the UK's biggest steel company.


TRAVELODGE: Moody's Assigns Ba3 Ratings to Credit Facilities
------------------------------------------------------------
Moody's Investors Service assigned a definitive Ba3 rating to the
GBP50 million revolving credit facility and assigned a Ba3 rating
to the GBP30 million letter of credit facility due 2022. The
Super Senior Revolving Credit Facilities are issued by Full Moon
Holdco 7 Limited, a wholly-owned, indirect subsidiary of Thame
and London Limited. Further, Moody's assigned a definitive rating
of B3 to the GBP390 million Senior Secured Notes due 2023 issued
by TVL Finance plc, a wholly-owned, indirect subsidiary of Thame
and London Limited. The rating outlook for all ratings is stable.

RATINGS RATIONALE

Moody's assigned definitive ratings following the closing of the
transaction on May 10, 2016 as anticipated. Moody's previously
assigned a first-time B3 corporate family rating to Thame and
London Limited.

The proceeds of the bond were used to refinance Travelodge's debt
and to extend its maturity profile.


WILLIAM HILL: Moody's Changes Outlook on Ba1 CFR to Stable
-----------------------------------------------------------
Moody's Investors Service has changed to stable from positive the
outlook on the Ba1 corporate family rating (CFR) and Ba1-PD
probability of default rating (PDR) of leading UK gaming company
William Hill Plc (William Hill). At the same time, Moody's has
affirmed the ratings.

"Our decision to stabilize the outlook reflects weakened trading
in William Hill's online division, the slow turnaround of its
underperforming Australian business, which will result in further
operating profit declines in fiscal 2016.The outlook change also
factors in the impact the company's share buy-back program
turning free cash flow negative despite strong credit metrics and
liquidity," says Donatella Maso, a Moody's Vice President -
Senior Analyst.

The rating agency also affirmed the Ba1 rating of the GBP375
million senior unsecured notes due 2020 and the Ba1 rating of the
GBP300 million senior unsecured notes due 2016, both issued by
William Hill.

RATINGS RATIONALE

-- CHANGE OF OUTLOOK TO STABLE FROM POSITIVE

The outlook change to stable from positive primarily reflects
William Hill's weakened online operating performance since the
second half of fiscal year (FY) 2015 and the turnaround risk
associated with its Australian online business, which will result
in a further 10%-15% reduction in the group operating profit for
the current year.

While Moody's expects that William Hill's credit metrics
(particularly leverage and interest coverage) and liquidity will
remain strong for the rating category, free cash flow generation
will turn negative in FY2016 owing to the GBP200 million share
buy-back program.

FY2015 was a challenging year for William Hill due to weakness in
its non-core online markets, increased tax and regulatory
requirements for UK gaming machines, the full impact of the Point
of Consumption tax and underperformance of its Australian online
operations, which more than offset strong cost control and UK
online growth, albeit this is lower than its peers.

The group reported an operating profit of GBP291 million
representing a 22% decrease compared to prior year. However, due
to the high cash flow generative nature of the business and
repayment of the drawn revolving credit facility (RCF), William
Hill's credit metrics and liquidity remained strong.

Uniquely among the company's divisions, William Hill Online
continued to experience negative trends in the first seventeen
week trading of FY2016, both in its core and non-core markets,
with revenues down by 11% and margin by 0.9 percentage points.
This downward movement was due to large pay-outs at the 2016
Cheltenham Festival horse races but also to an unexpected
increase in the number of time-outs and automatic self-exclusions
from customers.

Moody's acknowledges management's efforts to mitigate these
trends by improving customer experience and refocusing marketing
activities in order to acquire and retain profitable customers.
Given the fierce competition underpinning the online gambling
industry, it will take time to achieve the targeted results.

Similarly, Moody's expects a slow and gradual recovery of the
Australian online business, albeit underway, as company stated a
22% increase in wagered amounts and a 46% increase in new
accounts under the core William Hill brand since the beginning of
the year.

As a result, profits and profit margins will be further pressured
in the current financial year, Moody's adjusted leverage and
interest coverage will slightly worsen, while still remaining
better than the triggers set for the rating category. Conversely,
free cash flow will turn negative primarily due to the share buy-
back program, to return positive in FY 2017, with liquidity being
ample in both financial years.

William Hill's Ba1 CFR continues to reflect (1) its mature
premises-based retail business; (2) the recent weakened operating
performance of its online division, which continues to rely
heavily on a rising marketing and technological spend; (3) the
turnaround of its underperforming Australian online business and
more broadly the execution and integration risk associated with
its M&A activity into new products and geographies; and (4)
ongoing exposure to evolving regulatory and fiscal regimes.

More positively, the Ba1 CFR is supported by (1) William Hill's
leadership positions in the UK retail betting industry, with the
company reporting a market share of around 26%, as measured by
number of licensed betting offices, and in the UK online betting
and gaming segments as well as its growing international
presence; (2) the company's strong brand name and the retail
segment's high barriers to entry; and (3) the underlying positive
industry fundamentals underpinning online gambling wagers growth.

LIQUIDITY

The company's liquidity profile is robust as it is underpinned by
GBP190 million of unrestricted cash and short-term deposits, full
availability of its GBP540 million committed revolving credit
facility as of 31 December 2015. These resources are likely to
more than cover expected cash outflows over the next 12 to 18
months, including the GBP200 million share buy-back program and
the GBP90 million planned investment to support NYX Gaming
Group's (unrated) acquisition of the software company Openbet
(unrated).

Under its five-year GBP540 million committed multi-currency
revolving facility, maturing May 2019, William Hill has to comply
with two financial covenants, a maximum leverage ratio of 3.5x
and a minimum interest cover of 3.0x. At December 31, 2015, the
company reported ample headroom under both tests.

RATIONALE FOR STABLE OUTLOOK

The stable rating outlook reflects Moody's expectation that
William Hill will maintain strong credit metric and liquidity for
its rating category over the next 12 to 18 months, despite
weakness in its online division and the turnaround of its
Australian operations from FY2015 underperformance. Moody's also
expects that the company will generate positive free cash flow
from FY2017 onwards and there will be no further material
regulatory changes.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure could be exerted on the rating if William Hill's
adjusted debt/EBITDA is maintained below 3.0x and its retained
cash flow/ debt well above 15%, while generating meaningful free
cash flow generation. For an upgrade, William Hill will have to
publicly commit to a conservative financial policy.

Negative pressure could be exerted on the rating if the company's
credit metrics become weaker than the targets set for the rating
category, with the ratio of adjusted debt/EBITDA increasing
towards 4.0x. Challenges to the company's liquidity risk profile
could also have negative rating implications.

LIST OF AFFECTED RATINGS:

Affirmations:

Issuer: William Hill plc

-- Corporate Family Rating, Affirmed Ba1

-- Probability of Default Rating, Affirmed Ba1-PD

-- Senior Unsecured Regular Bond/Debenture, Affirmed Ba1 (LGD 4)

Outlook Actions:

Issuer: William Hill plc

-- Outlook, Changed To Stable From Positive

Established in 1934, William Hill plc is a leading sports betting
and gaming company that operates predominantly in the UK, a
market that provided approximately 85% of the company's net
revenues in fiscal year 2015. William Hill's main delivery
channels are retail and online: the former through 2,371 licensed
betting shops in the UK with over-the-counter betting and gaming
machines, and the latter offering sports betting, casino games,
poker, bingo and live casino via mobile and internet connections.

In fiscal year 2015, William Hill generated revenues of GBP1.6
billion and EBITDA of GBP429 million on a Moody's adjusted basis.
The company has been listed on the London Stock Exchange since
2002.


                            *********

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
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re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

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

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


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