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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Thursday, June 9, 2016, Vol. 17, No. 113


                            Headlines


B U L G A R I A

* 36 Bulgarian Municipalities on Brink of Bankruptcy


C Y P R U S

CYPRUS: DBRS Confirms 'B' Long-Term Currency Issuer Ratings


F I N L A N D

OUTOKUMPU OYJ: Moody's Assigns (P)B2 Rating to EUR200MM Sr. Notes


F R A N C E

CREDIT AGRICOLE: Fitch Affirms BB+ Rating on Addt'l Tier 1 Secs.
TEREOS FINANCE: S&P Assigns 'BB' Rating to EUR400MM Sr. Notes


G E R M A N Y

BREMER LANDESBANK: Moody's Lowers LT Debt & Issuer Ratings to Ba1
SPRINGER SBM: S&P Affirms 'B' CCR & Revises Outlook to Stable


G R E E C E

TITAN CEMENT: S&P Affirms 'BB' CCR, Outlook Positive


I R E L A N D

EIRCOM FINANCE: Moody's Assigns (P)B2 Rating to EUR500MM Notes
EIRCOM FINANCE: S&P Assigns 'B' Rating to EUR500MM Sr. Sec. Notes


I T A L Y

ACTA SPA: Receiver Sets July 1 Deadline for Irrevocable Bids
DIAPHORA 3: July 11 Residential Complex Bid Deadline Set


N E T H E R L A N D S

COTT CORP: Moody's Affirms B2 CFR, Outlook Stable
JUBILEE CLO 2015-XVI: S&P Affirms B- Rating on Class F Notes


P O R T U G A L

CAIXA ECONOMICA MONTEPIO: Moody's Cuts Sr. Debt Rating to B3
CAIXA GERAL: Moody's Reviews Deposits B1 Rating for Downgrade


R O M A N I A

HIDROELECTRICA SA: Mulls Suit Against Transelectrica, CEZ


R U S S I A

CREDITALLIANCE LLC: Placed Under Provisional Administration
FAR-EASTERN SHIPPING: Fitch Cuts LT Issuer Default Rating to 'RD'
FAR-EASTERN SHIPPING: S&P Lowers CCR to 'SD' on Missed Payment
FINANCIAL STANDARD: Placed Under Provisional Administration
RAZGULAY GROUP: Rusagro Files Bankruptcy Claim in Moscow Court


S P A I N

PYMES SANTANDER 6: DBRS Puts Series B Notes Under Review
* DBRS Takes Rating Actions on 69 Note Classes from Spanish RMBS


S W E D E N

HOIST KREDIT: Moody's Raises Long-Term Issuer Rating to Ba1


U N I T E D   K I N G D O M

BHS GROUP: Lord Myners Calls for Deeper Probe Into Collapse
LOGISTICS UK 2015: Moody's Affirms B1 Rating on Class F Notes
* UNITED KINGDOM: Insolvency Figures Hit Lowest Levels in 7 Years


                            *********


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B U L G A R I A
===============


* 36 Bulgarian Municipalities on Brink of Bankruptcy
----------------------------------------------------
Standart News reports that 36 Bulgarian municipalities are in
extreme financial difficulty.

These municipalities are Kresna, Simitli, Strumiani, Liaskovetc,
Vidin, Dimovo, Borovan, Mizia, Kirkovo, Kardzhali, Dupnitsa,
Rila, Sapareva Bania, Lovech, Bulgaria Bulgaria, Georgi
Damyanovo, Batak, Belovo, Velingrad, September Pernik, Karlovo,
Sliven, Banite, Devin, Dospat, Madan, Nedelino, Rudozem, Smolyan,
Chepelare, Kostenets, Opan, Omourtag, Mineralni Bani and
Stambolovo, Standart News discloses.

The worst off are Pernik, Banite, Nedelino, Mineralni Bani,
Stambolovo, Vidin, Sapareva Bania, Rudozem and Smolyan, Standart
News says, citing data by the Ministry of Finance.



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C Y P R U S
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CYPRUS: DBRS Confirms 'B' Long-Term Currency Issuer Ratings
-----------------------------------------------------------
DBRS Ratings Limited confirmed the Republic of Cyprus's long-term
foreign and local currency issuer ratings at B and the short-term
foreign and local currency ratings at R-4. The trend on all
ratings is Stable.

The ratings reflect Cyprus's Eurozone membership, which has
ensured financial support, as well as its attractiveness as a
business services centre and a tourist destination, the solid
fiscal performance achieved under the economic adjustment
program, and its favorable public debt maturity profile. However,
the ratings also underscore the depth of Cyprus's challenges,
given its high levels of public and private sector debt, sizable
non-performing loans, persistent external imbalances and the
small size of its relatively undiversified economy.

As economic conditions stabilized in 2015, output returned to
growth. The recovery appears likely to strengthen gradually,
supported by tourism, stabilization in the housing sector and
improving conditions in the labor market. The Stable trend
reflects DBRS's view that the economic recovery, while expected
to be broadly steady, could face some risks in the near term
given its reliance on external demand. Conditions in the global
economy could prove less supportive and volatility in financial
markets could intensify. In particular, a UK vote to leave the EU
could affect the recovery of the Cypriot economy given its strong
trade and financial links to the UK.

Cyprus benefits significantly from its membership in the
Eurozone. Policy measures implemented by Cyprus in the process of
EU accession in 2004 and adoption of the Euro in 2008, and more
recently, under the economic adjustment program, have helped
strengthen domestic institutions and enhance Cyprus's
attractiveness as a business centre and tourist destination. EU
budget transfers and long-term infrastructure financing from the
European Investment Bank also contribute to investment. Moreover,
in March 2016, Cyprus concluded the three-year program agreed
with the European Commission, the European Central Bank and the
IMF. The IMF contributed EUR1 billion, while the EU provided
EUR6.3 billion of the EUR9 billion initially agreed. The program
allowed Cyprus to consolidate its public finances and restructure
its banking sector.

The attractiveness of Cyprus as a business services centre is not
only supported by strengthened institutions and policies, but
also by its low corporate tax environment. Although Cyprus's
advantages could be eroded by external competitors or by
regulatory changes in creditor countries, DBRS expects the
business services sector to remain an important source of
employment and income for the Cypriot economy. Cyprus has also
taken advantage of its geographic location that makes the island
an attractive tourist destination for Europeans.

Cyprus's robust fiscal performance in recent years provides
additional support to the ratings. The government achieved a
relatively quick improvement in the budget position, with the
headline fiscal deficit declining from 5.8% of GDP in 2012 to
1.0% in 2015 and the primary deficit shifting to a surplus of
close to 2%. Fiscal management has also been strengthened, which
together with some privatizations, should help maintain the
fiscal adjustment. The fiscal position is expected to continue to
improve over the coming years.

Cyprus's public debt maturity structure is also favorable. The
government has benefited from lower market interest rates and
extended debt maturities, thus reducing refinancing risks. The
average debt maturity was 8.5 years at the end of 2015. In
particular, ESM loans -- with a weighted average maturity of
nearly 15 years -- are not set to be repaid until 2025.

Nevertheless, Cyprus faces several credit challenges. General
government debt is estimated to have peaked at 108.9% of GDP in
2015. Although the fiscal adjustment appears largely complete at
this stage, continued fiscal discipline and stronger economic
growth will be essential to bring debt down to more manageable
levels over time. Moreover, a prolonged deterioration in market
conditions could present significant challenges given Cyprus's
reliance on external funding.

Private sector debt ratios are also at historically high levels
and suggest that growth will be constrained by deleveraging.
Household and corporate balance sheets have been damaged in the
crisis, through the bail-in of uninsured depositors and the fall
in real estate prices. At the same time, Cypriot banks' non-
performing loans for households and corporations are extremely
high, at around 55% of total loans, although important efforts
have been taken to speed the resolution of NPLs.

Cyprus's external imbalances pose another challenge. Although the
current account deficit has narrowed significantly in recent
years, to below 4% of GDP, a persistent current account deficit
and a sizable net external liability position of almost 130% of
GDP, together with reliance on external borrowing, leaves Cyprus
exposed to external shocks.

Cyprus's small and relatively undiversified economy is also
expected to remain heavily dependent on external demand for the
foreseeable future. Competition from other Mediterranean
locations may dampen growth in the sector and additional shocks
from Europe could also have negative effects. If growth in
tourism and business registrations slows significantly, growth
prospects could be affected, as the domestic deleveraging
continues.

RATING DRIVERS

Upward rating action will depend on Cyprus's ability to generate
sustained economic growth and primary fiscal surpluses. The
fiscal performance has been strong and the improvement should be
maintained, supported by fiscal reforms adopted during the
economic adjustment program. Continued recovery of the economy
and sustainability of the fiscal adjustment should improve the
outlook for public debt dynamics. Stronger progress on the
resolution of non-performing loans and on privatization could
also put further upward pressure on the ratings. However, a
prolonged period of weak growth, particularly if combined with
fiscal slippage and higher financing needs, could result in
downward pressure on the ratings. External factors, including
adverse political developments between Cyprus and Turkey and
between the EU and Russia, as well as a UK vote to leave the EU,
could also have an impact on the prospects for growth and
investment in tourism, financial services and the energy sector.
Such developments could also result in downward pressure on the
ratings.



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F I N L A N D
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OUTOKUMPU OYJ: Moody's Assigns (P)B2 Rating to EUR200MM Sr. Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B2 rating
to the new EUR200 million senior secured fixed rate notes due
June 2021 to be issued by Finland-based stainless steel
manufacturer Outokumpu Oyj, and guaranteed by various group
subsidiaries.  The outlook on the rating is positive.

"We have assigned a provisional rating of (P)B2 to Outokumpu's
new senior secured fixed rate notes as they will be issued under
similar terms to its outstanding B2-rated notes.  Both sets of
notes will rank equally in the capital structure, with equivalent
benefits from their comparable security and guarantee
arrangements," says Hubert Allemani, a Vice President -- Senior
Analyst at Moody's, and lead analyst for Outokumpu.

The proceeds from the issuance will be used to refinance various
outstanding bilateral facilities, a term loan and pension loans.

Moody's issues provisional ratings for debt instruments in
advance of the final sale of securities or conclusion of credit
agreements.  Upon a conclusive review of the final documentation,
Moody's will endeavor to assign a definitive rating to the
envisaged debt instrument.  A definitive rating may differ from a
provisional rating.

                          RATINGS RATIONALE

   -- (P)B2 SENIOR SECURED FIXED RATE NOTES

The (P)B2 rating assigned to the proposed EUR200 million senior
secured fixed rate notes to be issued by Outokumpu Oyj, reflects
that they will be issued under similar terms to the outstanding
B2-rated EUR250 million senior secured fixed rate notes due 2019.
Both instruments rank pari passu and benefit from similar
security and guarantee packages from material subsidiaries.

The ratings on the new senior secured notes and the outstanding
ones due 2019, respectively (P)B2 and B2, are one notch above the
corporate family rating of B3.  This uplift reflects the benefit
from the security package, the guarantees in place and their
priority in right of payment against the existing unsecured
indebtedness.

   -- B3 CORPORATE FAMILY RATING

Outokumpu's B3 CFR rating positively reflects (1) its solid
business profile, supported by its geographical diversification
and wide product mix; (2) the positive market fundamentals
expected over the next two years in its two main markets of
Europe and The North American Free Trade Agreement area; (3) its
leading market shares; (4) its well invested manufacturing
facilities; (5) its stable and supportive shareholder structure,
including a 26% indirect stake of the Government of Finland (Aa1
stable) through Solidium Oy; and (6) its conservative financial
policy.

However, the company's rating is constrained by (1) the high
level of competition from Asian manufacturers in both Europe and
the US; (2) its low profitability, with negative EBIT and
negative free cash flow over the past three years; (3) high
leverage, as measured after Moody's standard adjustments of 19.4x
as of
Dec. 31, 2015; and (4) its weak debt maturity profile, with a
large portion of short-term maturities.

RATIONALE FOR THE POSITIVE OUTLOOK

The positive outlook reflects Moody's expectations that Outokumpu
will be able to improve its EBIT and EBITDA over the next year,
such that credit metrics for profitability, cash flow and
Moody's-adjusted leverage are more in line with the single B
rating category.  However, the outlook could be changed to stable
if there is no significant deleveraging or the company is unable
to improve its profitability.

WHAT COULD CHANGE THE RATING UP

Moody's could upgrade the ratings if (1) Outokumpu successfully
runs its restructuring programmes and its commercial ramp-up in
the US, such that its EBIT margin trends above 2%; (2) the
company's EBIT to interest ratio trends towards 1.5x on a
sustainable basis; (3) the company maintains an adequate
liquidity profile with improving debt maturity profile; and (4)
its Moody's-adjusted leverage decreases sustainably towards 6.5x
within the next 12 to 18 months, with a clear indication of a
trend towards 5.5x.

WHAT COULD CHANGE THE RATING DOWN

The ratings could experience negative pressure if the company
cannot improve the profitability of its US activity, or if its
liquidity profile deteriorates, such that the company is unable
to maintain an adequate liquidity profile for the rating.

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was Global Steel
Industry published in October 2012.

Headquartered in Espoo, Finland, Outokumpu is a leading global
manufacturer of cold-rolled stainless steel.  It holds the
leading position in Europe with a market share of 30% and the
second-largest market position in North America, with a market
share of 21%.  With a total revenue in 2015 of EUR6.4 billion and
more than 11,000 employees, Outokumpu is one of Finland's largest
companies.



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F R A N C E
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CREDIT AGRICOLE: Fitch Affirms BB+ Rating on Addt'l Tier 1 Secs.
----------------------------------------------------------------
Fitch Ratings has affirmed Credit Agricole's (CA) Long-Term
Issuer Default Rating (IDR) and senior debt ratings at 'A',
Short-Term IDR at 'F1', and Viability Rating (VR) at 'a'. The
Outlook on the Long-term IDR is Positive.

Fitch has also affirmed the ratings of Credit Agricole S.A. (CA
S.A.) and Credit Agricole Corporate and Investment Bank (CACIB).
CA is not a single entity, but a cooperative banking group. Its
39 regional banks (caisses regionales; CRs), CA S.A., and CACIB
are bound by a cross-support mechanism according to the French
Financial and Monetary Code. Accordingly, Fitch has the same IDRs
for CA, CA S.A. and CACIB. The IDRs would also apply to the CRs
if Fitch rated them.

The ratings actions are part of a periodic portfolio review of
the three large French cooperative banking groups rated by Fitch.

KEY RATING DRIVERS

IDRS, VR AND SENIOR DEBT - CA

CA's ratings are supported by the group's leading position as a
bancassureur in France, which provides it with resilient earnings
streams, sound asset quality, and sound funding and liquidity
profile.

The Positive Outlook reflects strengthened capitalization and a
track record of a lower risk appetite. CA's capital trajectory,
including strengthened internal capital generation and a fully
loaded common equity Tier 1 ratio target of 16% by 2019, is
becoming in line with that of 'a+' rated banks.

The group's strategy to focus on core businesses and limit
strategic expansion abroad is contributing to a risk appetite
increasingly in line with its two domestic cooperative peers.
Italy remains central in CA's international retail strategy, but
performance there will largely depend on the pace of the economic
recovery. Fitch expects improved performance in Italy to support
a sustained improvement in CA's risk profile.

CA is one of Europe's largest banking groups by deposits,
although it primarily operates in France, where it is the leading
domestic retail banking group (around 25% market share). The
group's strategy is to reinforce its leading domestic position in
retail banking by achieving organic growth, revenue synergies
through high cross selling across group entities, and further
costs savings, including in IT. Growth through acquisitions
outside the domestic market will essentially be achieved through
Amundi, its asset manager, and in private banking.

CA's domestic retail banking activity generates solid and stable
earnings and is the largest contributor to operating profit.
Competitive pressures in the French housing lending market have
been exacerbated by the low interest rates, leading to high
amount of renegotiations and lower net interest income. The focus
on cross-selling of savings and insurance products, and increase
of higher margin consumer finance and other specialized financing
are among the tools the group has to offset the pressure in
retail banking. Fitch expects the group to be able to report
resilient earnings generation despite the revenue pressure from
the low interest rates, without increasing its risk appetite.

CA's loan portfolio is mainly concentrated in France, with a
large portion of low-risk housing loans. CA's impaired
loans/gross loans ratio is broadly in line with domestic
cooperative peers, although reserves for impaired loans compare
well with its French peers. The exposures in Italy, considered as
higher risk by Fitch, are manageable for the group, and Fitch
expects further improvements.

Fitch core capital to risk-weighted assets ratio was a solid
13.8% at end-2015 and the ratings take into account further
improvement in the capital ratios. Capitalization should be
supported by solid earnings retention, the group's recent upwards
revision of its capital targets and its TLAC strategy, including
meeting the requirements without senior unsecured debt. The group
has announced that it intends to issue the proposed new French
class of senior debt, the non-preferred senior debt.

Stable customer deposits form the bulk of funding. CA's funding
and liquidity profile is solid, and the group has reduced its
reliance on short-term wholesale funding while maintaining its
large liquidity buffer. In Fitch's view, compared with similarly
rated international peers, its liquidity reserve has a lower
proportion of high quality liquid assets as a proportion of total
assets.

IDRS AND SUPPORT RATING - LE CREDIT LYONNAIS (LCL)

LCL's Long- and Short-term IDRs are equalized with those of CA
and those of CA's central body, CA S.A., which holds 95% of LCL's
shares. The rating alignment reflects Fitch's opinion that LCL is
a core subsidiary of CA given its ownership structure and
integration with its parent.

LCL's Support Rating reflects Fitch's opinion that there is an
extremely high probability of support for LCL from CA S.A., and
in turn from CA, if required. The Positive Outlook on LCL's Long-
term IDRs reflects that on CA's.

VR - LCL

Fitch has affirmed LCL's VR at 'a-', which reflects LCL's
moderate franchise in France, retail-driven business model,
moderate risk appetite, adequate capitalization and satisfactory
funding.

LCL focuses on profitable domestic retail banking in urban areas,
as well as providing services to SMEs and larger corporates. In
the context of low interest rates and intensive competitive
pressure on the housing loan market in France, LCL is further
strengthening its customer relationships and increasing cross-
selling, including products from the group. Maintaining net
income in 2016 compared with 2015 will be a challenge. Margin
pressure and high volumes of loan renegotiations have led to
lower revenues so far in 2016. Cost containment measures are on-
going and loan impairment charges are expected to remain low.
LCL's cost to income ratio is higher than most French peers, but
overall profitability is good.

LCL's risk appetite is moderate, reflected in a fairly stable
asset quality, with lower impaired loans than most of the French
universal banks. Prudent underwriting standards and its retail
focus support loan quality, and over half of the loan book is to
French households, mostly in the form of housing loans.

Customer deposits form the bulk of LCL's funding and are largely
retail, with limited need for wholesale funding. Liquidity is
managed at group level and is healthy. Capital is also managed at
CA level, and dividend payout ratios are high. The capital ratios
are adequate, considering LCL's sound risk profile, sound asset
quality and low exposure to market risk. Fitch expects further
improvement in line with that at the group level, as demonstrated
by the increase in the Tier 1 and total capital ratios over 2015.

SUPPORT RATING AND SUPPORT RATING FLOOR - CA

CA's Support Rating (SR) and Support Rating Floor (SRF) reflect
Fitch's view that senior creditors can no longer rely on
receiving full extraordinary support from the sovereign if the
group becomes non-viable. The EU's Bank Recovery and Resolution
Directive and the Single Resolution Mechanism for eurozone banks
provide a framework for resolving banks that is likely to require
senior creditors participating in losses, if necessary, instead
of or ahead of a bank receiving sovereign support.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

Subordinated debt and other hybrid capital issued by CA S.A. and
CA Preferred Funding Trust III are all notched down from CA's VR
in accordance with Fitch's assessment of each instrument's
respective non-performance and relative loss severity risk
profiles.

Subordinated lower Tier 2 debt is rated one notch below CA's VR
to reflect higher than average loss severity of this type of
debt.

Subordinated upper Tier 2 instruments are rated three notches
below the VR to reflect higher than average loss severity (one
notch) as well as a higher risk of non-performance (an additional
two notches).

Legacy hybrid Tier 1 securities are rated four notches below CA's
VR (two notches for loss severity and two notches for non-
performance).

CA S.A.'s Tier 2 contingent capital notes are rated four notches
below CA's VR - two notches for loss severity to reflect the
principal write-down feature, and two notches for non-performance
to reflect high incremental risk compared with the risk as
reflected in the VR, as a result of the 7% CET1 ratio trigger.
Fitch has assigned 50% equity credit to the securities to reflect
that the notes are not perpetual but with a long maturity.

Additional Tier 1 notes are rated five notches below CA's VR -
two notches for loss severity and three notches for non-
performance to reflect the fully discretionary coupon and
incremental risk compared with the risk reflected by the VR, due
to the 7% CET1 ratio trigger. Fitch has assigned 100% equity
credit to those securities.

OTHER SUBSIDIARIES AND AFFILIATED COMPANIES

The regional banks, CA S.A. and CACIB are bound by the group's
cross-support mechanism according to the French Financial and
Monetary Code. Fitch has the same IDRs for CA, CA S.A. and CACIB.
The IDRs would also apply to the 39 CRs if Fitch rated them.

The IDRs of other subsidiaries, CA Consumer Finance and Credit
Agricole Leasing & Factoring, have also been affirmed. Their IDRs
and SRs are based on an extremely high probability of support
from CA if needed. CA Consumer Finance's and Credit Agricole
Leasing & Factoring's Long-and Short-Term IDRs are equalised with
those of CA as Fitch views them as core subsidiaries given their
strategic importance to and integration with their parent.

Credit Agricole CIB Finance (Guernsey) and Credit Agricole CIB
Financial Products (Guernsey) are wholly owned financing
subsidiaries of CACIB. Their debt ratings are aligned with those
of CACIB, based on an extremely high probability of support from
the latter if required.

RATING SENSITIVITIES

IDRS, VR AND SENIOR DEBT - CA

The Positive Outlook on CA's ratings reflects Fitch's expectation
that the group will maintain its fairly low risk appetite and
continue to improve its capitalization. Deviation from the focus
on domestic retail banking, such as expansion into higher-risk
business, especially abroad, and from the current capital
trajectory would lead to negative rating pressure.

An upgrade of the VR would be contingent on evidence of better
asset quality in CA's Italian subsidiaries. Improvement in
profitability metrics would support an upgrade.

IDRS AND SUPPORT RATING - LCL

Unless LCL's ownership changes or its strategic importance to and
integration within CA weakens, the bank's SR is unlikely to
change and its IDRs will continue to move in tandem with those of
CA.

VR - LCL

An upgrade is unlikely in the near future, given the bank's
limited ability to grow its franchise and high dividend pay-out
ratios. A marked deterioration in asset quality or in capital
ratios would adversely affect the VR.

SUPPORT RATING AND SUPPORT RATING FLOOR - CA

An upgrade to CA's SR and upward revision to its SRF would be
contingent on a positive change in the French sovereign's
propensity to support its banks. While not impossible, this is
highly unlikely in Fitch's view.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

The ratings of subordinated debt and other hybrid capital are
primarily sensitive to a change in CA's VR.

Legacy hybrid Tier 1 notes, Tier 2 contingent capital securities
and additional Tier 1 capital notes are also sensitive to Fitch
changing its assessment of the probability of their non-
performance relative to the risk captured in CA's VR.

OTHER SUBSIDIARIES AND AFFILIATED COMPANIES

CACIB's ratings are sensitive to the same factors that might
drive a change in CA's IDRs unless there is a change in the
affiliation status, which Fitch views as extremely unlikely.

CA S.A.'s IDRs and senior debt ratings would be sensitive to a
change in those of CA.

All other subsidiaries ratings are sensitive to changes in CA's
IDRs and changes in the subsidiaries' importance to the group.

The rating actions are as follows:

Credit Agricole

Long-Term IDR: affirmed at 'A'; Outlook Positive
Short-Term IDR: affirmed at 'F1'
Viability Rating: affirmed at 'a'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'

Credit Agricole S.A.

Long-Term IDR: affirmed at 'A'; Outlook Positive
Short-Term IDR: affirmed at 'F1'
Senior debt: affirmed at 'A'
Extendible commercial notes - affirmed at 'A'
Short-Term debt: affirmed at 'F1' Lower Tier 2: affirmed at 'A-'
Upper Tier 2: affirmed at 'BBB'
Innovative Tier 1: affirmed at 'BBB-'
Non-Innovative Tier 1: affirmed at 'BBB-'
Tier 2 contingent capital notes: affirmed at 'BBB-'
Additional Tier 1: affirmed at 'BB+'

Le Credit Lyonnais

Long-Term IDR: affirmed at 'A'; Outlook Positive
Short-Term IDR: affirmed at 'F1'
Viability Rating: affirmed at 'a-'
Support Rating: affirmed at '1'
Senior Debt: affirmed at 'A'
Certificate of deposit: affirmed at 'F1'
Bons a Moyen Terme Negociables (BMTN): affirmed at 'A'

Credit Agricole Corporate and Investment Bank

Long-Term IDR: affirmed at 'A'; Outlook Positive
Short-Term IDR: affirmed at 'F1'
Senior debt: affirmed at 'A'
Market-linked securities: affirmed at 'A(emr)'
Short-term debt: affirmed at 'F1'

Credit Agricole CIB Finance (Guernsey)

Senior debt: affirmed at 'A'
Market-linked guaranteed securities: affirmed at 'A(emr)'
Guaranteed notes: affirmed at 'A'
Short-Term debt: affirmed at 'F1'

Credit Agricole CIB Financial Products (Guernsey)

Senior debt: affirmed at 'A'
Senior guaranteed securities: affirmed at 'A'
Short-Term debt: affirmed at 'F1'

CA Consumer Finance

Long-Term IDR: affirmed at 'A'; Outlook Positive
Short-Term IDR: affirmed at 'F1'
Support Rating: affirmed at '1'
Senior debt: affirmed at 'A'
Short-Term debt: affirmed at 'F1'

Credit Agricole Leasing & Factoring

Long-Term IDR: affirmed at 'A'; Outlook Positive
Short-Term IDR: affirmed at 'F1'
Support Rating: affirmed at '1'


TEREOS FINANCE: S&P Assigns 'BB' Rating to EUR400MM Sr. Notes
-------------------------------------------------------------
S&P Global Ratings has assigned its 'BB' issue rating to the
proposed EUR400 million senior unsecured notes due 2023, to be
issued by Tereos Finance Groupe I, a subsidiary of Tereos Union
de Cooperatives Agricoles (Tereos UCA).  The recovery rating on
the proposed unsecured notes is '4', indicating S&P's expectation
of average recovery in the upper half of the 30%-50% range in the
event of a payment default.

RECOVERY ANALYSIS

The issue and recovery ratings on the proposed senior unsecured
notes are constrained by their subordination to a substantial
amount of debt held by subsidiaries, as well as the unsecured
nature of the bond.

S&P expects that the proceeds from the proposed bond will be used
to refinance existing prior-ranking debt at subsidiaries, thus
improving S&P's recovery expectations to the higher half of the
30%-50% range.  The documentation for the proposed bond is in
line with that of the existing bond.  It contains customary
restrictions such as negative pledge and change of control.

S&P assumed that the majority of Tereos' cooperative members
would inject equity into the company in a default scenario, as
per the terms of the cooperative agreement.  S&P also adjusted
the enterprise value to reflect Tereos' lack of full ownership of
some of its subsidiaries, in particular in its Brazilian
subsidiary Guarani S.A.

In S&P's hypothetical default scenario, it assumes a poor
sugarcane harvest due to adverse weather conditions, a sharp
decline in sugar and ethanol prices in Europe and Brazil, low
industrial demand for starch and starch derivatives activities,
and adverse changes in industry regulation for sugar and ethanol.

SIMULATED DEFAULT ASSUMPTIONS

   -- Simulated year of default: 2021
   -- EBITDA at emergence: EUR468 million
   -- EBITDA multiple: 5.5x
   -- Jurisdiction: France

SIMPLIFIED WATERFALL

   -- Net enterprise value: EUR2,634 million
   -- Priority debt: EUR2,256 million*
   -- Senior unsecured debt: EUR920 million*
   -- Recovery expectations: 30%-50% (higher half of the range)

*All debt amounts include six months' prepetition interest.



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G E R M A N Y
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BREMER LANDESBANK: Moody's Lowers LT Debt & Issuer Ratings to Ba1
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Moody's Investors Service has downgraded the long-term debt and
issuer ratings of Bremer Landesbank Kreditanstalt Oldenburg GZ
(BremerLB) to Ba1 from Baa2 and the bank's long-term deposit
ratings to Baa3 from Baa1.

The actions were prompted by BremerLB's June 2 announcement that
expected sizable value adjustments in its shipping loan portfolio
will likely result in an annual loss for 2016 in the amount of a
"mid three-digit million figure" according to the bank's
estimates and that capital strengthening measures are
contemplated.

In light of this outsized loss expectation, which could exceed
one third of the bank's common equity tier 1 capital, Moody's
downgraded BremerLB's standalone baseline credit assessment (BCA)
to caa2 from b1, thereby also reflecting the need for a
recapitalization of the bank to restore sufficient capital
buffers above the regulatory minimum against its elevated risk
profile as a dedicated lender to the global shipping industry.

The downgrade of BremerLB's adjusted BCA was less pronounced, to
b1 from ba2, reflecting the rating agency's assessment of a very
high likelihood of affiliate support from its majority owner
Norddeutsche Landesbank GZ (NORD/LB deposits A2 review for
downgrade/senior unsecured A3 review for downgrade, BCA ba2) and
from the institutional protection scheme of Sparkassen-
Finanzgruppe (S-Finanzgruppe; Corporate Family Rating Aa2 stable;
BCA a2).

However, as assumedly no decision about the necessary
recapitalization measures by all shareholders -- which includes
the German federal state City of Bremen (unrated) -- was made
prior to BremerLB's loss announcement, Moody's believes that
downside risks for BremerLB's creditors are rising.

Concurrently, Moody's also downgraded BremerLB's short-term debt
and deposit ratings to Prime-3 from Prime-2 and the bank's
subordinated medium-term note (MTN) program rating to (P)B2 from
(P)Ba3.  Furthermore, BremerLB's Counterparty Risk (CR)
Assessment was downgraded to Baa3(cr)/P-3(cr) from Baa1(cr)/P-
2(cr).

All ratings and rating inputs of BremerLB that were placed on
review for downgrade on 1 June 2016 remain on review for
downgrade.  This reflects both the yet unresolved
recapitalization steps for the bank following the announced loss
expectation, as well as the ongoing rating review on NORD/LB.
While Moody's expects to obtain more clarity on the progress of a
timely recapitalization agreement in due course, the final
closure of the review on the bank's ratings is also contingent
upon the closure of the ratings review of its parent NORD/LB.

BremerLB's grandfathered debt ratings are unaffected by the
rating action.

RATINGS RATIONALE

DOWNGRADE OF BREMERLB'S BASELINE CREDIT ASSESSMENT

The downgrade of BremerLB's BCA to caa2 from b1 reflects Moody's
assessment that the accelerated provisioning announced by
BremerLB on June 2, 2016, for risks to the bank's shipping loan
book, together with the large net loss expected for 2016, will
require the bank to recur to its owners and support providers in
order to restore adequate capitalization levels.

BremerLB said on June 2, that, as of June 30, 2016, the bank will
book approximately EUR400 million in unplanned value adjustments,
which will rise to a high three-digit million number for the full
year 2016.  The bank estimates the full-year net loss to be a
"mid three-digit million figure" and said it has initiated
measures to strengthen its equity.

While a net loss of the magnitude announced by the bank could
leave it with regulatory common equity tier 1 (CET1) and Tier 1
ratios above the current minimum requirements of 5.125% and
6.625%, respectively, Moody's expects the remaining capital
cushion to be very low in comparison to the challenges and
vulnerabilities BremerLB faces with respect to the risks arising
from its EUR6.9 billion shipping loan book as of December 2015.
BremerLB's Tier 1 and CET1 ratios as of December 2015 stood at
10.8%.

The caa2 BCA reflects the very high risk of BremerLB requiring
extraordinary support to avoid regulatory intervention and
resolution measures.

DOWNGRADE OF BREMERLB'S ADJUSTED BASELINE CREDIT ASSESSMENT

The downgrade of BremerLB's Adjusted BCA to b1 from ba2
incorporates the four-notch downgrade of the bank's BCA, but also
the stronger emphasis on external support by affliates.

In Moody's opinion, BremerLB's owners and stakeholders, foremost
its 54.8% shareholder NORD/LB in conjunction with the
institutional protection scheme of S-Finanzgruppe -- which
BremerLB is a standalone member of -- have the financial capacity
as well as the incentives to recapitalize BremerLB and restore an
adequate financial profile of BremerLB.  This is reflected within
the four notches of affiliate support now incorporated within
BremerLB's adjusted BCA, up from two notches previously.

However, the downgrade of the Adjusted BCA to b1 from ba2 also
reflects the possibility that the shareholders involved fail to
reach an agreement for an extraordinary support provision from
NORD/LB and the institutional protection scheme of S-
Finanzgruppe, which will likely be considered a private sector
solution by the relevant European authorities.  The bank's second
important shareholder is the City of Bremen, which owns 41.2% of
BremerLB. Should the stakeholders agree on a solution that also
involves public-sector money, this could trigger, in Moody's
view, a state aid case against BremerLB and would therefore
heighten the risk of the bank entering resolution.

DOWNGRADE OF BREMERLB'S DEBT, ISSUER AND DEPOSIT RATINGS

The two-notch downgrade of BremerLB's debt, issuer and deposit
ratings mirrors the downgrade of BremerLB's Adjusted BCA.

The notching applied to BremerLB's rated liabilities under
Moody's Advanced Loss Given Failure (LGF) analysis has remained
unchanged following the rating action.  The rating agency
continues to consider BremerLB part of a joint resolution
perimeter with its domestic parent NORD/LB.

BremerLB's Baa3 deposit ratings are one notch higher than the
bank's Ba1 senior unsecured and issuer ratings, reflecting the
future subordination of long-term senior bonds below other senior
unsecured obligations, including institutional deposits and
short-term debt instruments, under the revised German bank
insolvency hierarchy that becomes effective on Jan. 1, 2017.

BREMERLB'S RATINGS REMAIN UNDER REVIEW FOR DOWNGRADE

The continued review for downgrade of BremerLB's ratings is
driven by the uncertainties related to the gradual
crystallisation of solvency risks resulting from BremerLB's
exposures to the global shipping industry.

In particular, during the review period, Moody's will monitor
BremerLB's progress in reaching a timely agreement with its
stakeholders to receive extraordinary support and the
implications of an eventual agreement or regulatory resolution
for BremerLB's creditors.

The rating positioning of BremerLB's Adjusted BCA and rated debt
instruments upon the closure of the ratings review will also take
into account Moody's assessment of the financial strength and the
liability structure of BremerLB's parent NORD/LB, since both are
currently under review for downgrade.

WHAT COULD CHANGE THE RATING - UP

There is currently no upward pressure on the ratings of BremerLB,
as indicated by the direction of the rating review.

Moody's may, however, ultimately upgrade or confirm the ratings
at their current levels when closing the rating review if NORD/LB
and/or the institutional protection scheme BremerLB adheres to
significantly recapitalize the bank without exposing BremerLB to
state aid proceedings.

WHAT COULD CHANGE THE RATING -- DOWN

Moody's may downgrade the BCA of BremerLB if the bank's
capitalization declines more strongly than currently
anticipated -- towards the level of immediate regulatory
intervention.

In addition to a BCA downgrade, BremerLB's Adjusted BCA and its
ratings could be downgraded as a consequence of: (1) Lack of a
near-term agreement between stakeholders on the recapitalization
of BremerLB; or (2) the triggering of European Commission state-
aid proceedings by a solution agreed on by BremerLB's owners.

In addition, BremerLB's senior debt ratings may be downgraded if
NORD/LB's senior unsecured debt layer provided less loss
absorption capacity following last year's maturities of
grandfathered debt than Moody's previously expected.

LIST OF AFFECTED RATINGS

These ratings of BremerLB were downgraded and remain under review
for downgrade:

  Adjusted Baseline Credit Assessment, to b1 from ba2
  Baseline Credit Assessment, to caa2 from b1
  Short-term Counterparty Risk Assessment, to P-3(cr) from
   P-2(cr)
  Long-term Counterparty Risk Assessment, to Baa3(cr) from
   Baa1(cr)
  Long-term Issuer Rating, to Ba1 Rating under Review from Baa2
   Rating under Review
  Short-term Deposit Ratings, to P-3 from P-2
  Subordinate Medium-Term Note Program, to (P)B2 from (P)Ba3
  Other Short Term, to (P)P-3 from (P)P-2
  Senior Unsecured Medium-Term Note Program, to (P)Ba1 from
   (P)Baa2
  Commercial Paper, to P-3 from P-2
  Senior Unsecured Regular Bond/Debenture, to Ba1 Rating Under
   Review from Baa2 Rating Under Review
  Long-term Deposit Ratings, to Baa3 Rating Under Review from
   Baa1 Rating Under Review
  BremerLB's issuer outlook remains Rating under Review

These ratings of BremerLB were unaffected:

  Backed Senior Unsecured Rating, currently Aa1 Stable
  Backed Subordinate Rating, currently Aa1
  Backed Senior Unsecured Medium-Term Note Program, currently
   (P)Aa1
  Backed Subordinate Medium-Term Note Program, currently (P)Aa1

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
published in January 2016.


SPRINGER SBM: S&P Affirms 'B' CCR & Revises Outlook to Stable
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S&P Global Ratings revised its outlook on German publisher
Springer SBM One GmbH (Springer Nature) to stable from positive.
At the same time, S&P affirmed its 'B' long-term corporate credit
rating on Springer Nature.

S&P also assigned its 'B' issue rating to the new proposed
tranches of up to EUR420 million senior secured term loans.  The
recovery rating on the loans is '3', reflecting S&P's expectation
of meaningful (50%-70%) recovery in the lower half of the 50%-70%
range in the event of a payment default.  S&P affirmed its 'B'
issue rating on Springer Nature's existing senior secured debt.
The recovery rating on this debt is unchanged at '3'.

S&P affirmed its 'CCC+' issue rating on group's subordinated
debt, of which up to EUR220 million will be outstanding, pro
forma the proposed refinancing.  The recovery rating of '6' on
this debt reflects S&P's expectation of negligible (0%-10%)
recovery in the event of a payment default.

The outlook revision reflects S&P's view that after the merger of
Springer and Macmillan Science and Education (MSE) operations in
May 2015, the group has not yet achieved credit metrics
commensurate with a higher rating level, including funds from
operations (FFO) to cash interest of 2.5x and debt to EBITDA
approaching 6x.  Springer Nature's operational performance was
slightly behind its growth plan, owing to soft economic
conditions in several of the group's markets, a structural
decline in the printed book business, and fierce competition in
the open access business.  In addition, the costs to integrate
MSE are denting group profitability in the near term.

Springer Nature's satisfactory business risk profile benefits
from the group's leading position as the largest English content
publisher globally, including scientific, technical, and medical
(STM) books and journals in its research division.  After the
merger with MSE, the group's content offering has improved,
mainly supported by high-quality Nature journals.  Springer
Nature has also kept its global leadership position in the open
access business even though it has lost some market share due to
increased competition.  S&P's assessment of Springer Nature's
business risk profile also reflects the group's high proportion
of stable and recurring subscription revenues and its solid
profitability in the STM business.

In S&P's view, these factors mitigate the education segment's
exposure to public-sector spending on education and curriculum
cycles and some exposure to cyclical advertising spending through
Springer Nature's professional division (business-to-business
operations).  Additionally, because of economic sluggishness in
several of the group's end-markets in 2015, some institutional
clients reduced their spending on research products (scientific
books and journals), taking a toll on group performance.

Furthermore, Springer Nature is exposed to the structural decline
in printed books, where sales dropped markedly in 2015.  However,
this business represented less than 10% of group revenues in
2015. Although cost synergies last year were ahead of Springer
Nature's plan, they did not outweigh the high costs to integrate
two businesses in 2015.  As a result, Springer Nature's pro-forma
EBITDA margin (including a 12-month contribution from MSE)
contracted to about 27%, versus Springer's stand-alone reported
EBITDA margin of more than 30% in 2014.

S&P continues to view Springer Nature's financial risk profile as
highly leveraged, reflecting the group's highly leveraged capital
structure including shareholder loans.  The proposed refinancing
transaction under which the group will raise additional senior
secured tranches of up to EUR420 million to prepay its private
high-yield note of the same amount has no impact on the total
debt amount.

The combination of a satisfactory business risk profile and
highly leveraged financial risk profile leads to an anchor of
'b+' for Springer Nature.  Because S&P considers that Springer
Nature has higher leverage than peers in S&P's comparative
ratings analysis, it makes a downward adjustment of one notch to
the anchor, resulting in S&P's 'B' rating on the group.

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

   -- A moderate GDP increase of 1.5%-1.6% in 2016-2018 in the
      eurozone and stronger GDP growth of 2.5%-2.7% in the U.S.
      in the same period.  In contrast, Latin America's GDP will
      likely narrow by 0.7% in 2016 before expanding by 1.8% in
      2017.  In the Asia-Pacific region, China and India will
      likely post the highest growth rates, in the 6.0%-6.3% and
      7.9%-8.0% ranges, respectively;

   -- Positive growth prospects in the group's main markets,
      which S&P thinks will underpin group earnings in 2016-2017.

   -- Average revenue growth of about 18% in 2016, including a
      full-year contribution from MSE (compared with 2015
      revenues that included a contribution over only eight
      months from MSE), and 4%-5% growth in 2017-2018 on
      increases in all divisions.

   -- Reported EBITDA margins of 27%-31% in 2016-2018, on the
      back of margin improvements across all divisions, cost
      synergies, with restructuring and integration costs poised
      to decline over the period.

   -- Annual capital expenditures of EUR125 million-EUR130
      million mainly for content investments.

   -- No acquisitions and no dividend payments.

Based on these assumptions, S&P arrives at these credit measures
for Springer Nature in 2016-2017:

   -- An S&P Global Ratings' adjusted debt (including shareholder
      loans)-to-EBITDA ratio of about 7.5x-8.5x; and
   -- An S&P Global Ratings' adjusted debt (excluding shareholder
   -- loans)-to-EBITDA ratio of about 6.5x-7.5x.
   -- FFO cash interest coverage comfortably above 2x.

The stable outlook reflects S&P's view that the integration of
Springer and MSE operations is on track, but the materialization
of the growth plan will take longer than S&P expected at the time
of the merger announcement.  The outlook factors in that the
group will gradually improve its profitability, maintaining
adjusted FFO cash interest in the 2.0x-2.5x range and returning
its FOCF generation into positive territory, while continuing to
deleverage mainly due to EBITDA growth.  S&P calculates that its
adjusted leverage (debt to EBITDA) ratio -- including shareholder
loans -- is likely to gradually decline to 7.6x in 2017 from
about 10x in 2015. Excluding shareholder loans, adjusted leverage
will likely decrease to about 6.6x in 2017 from 8.9x in 2015.

S&P could raise the ratings if Springer Nature achieved adjusted
FFO to cash interest coverage sustainably around 2.5x, and
continued generating positive FOCF, while reducing adjusted
leverage sustainably below 6x.  An upgrade would also hinge on
S&P's perception that the group's financial policy would remain
supportive of higher ratings, with liquidity remaining adequate.

S&P could lower the ratings if Springer Nature underperforms
S&P's base-case scenario, resulting in adjusted FFO to cash
interest below 2x, or if FOCF turned negative for a prolonged
period.  S&P could also take a negative rating action if the
group entered into sizable acquisitions leading to credit metrics
below S&P's expectations, or if liquidity weakened.



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G R E E C E
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TITAN CEMENT: S&P Affirms 'BB' CCR, Outlook Positive
----------------------------------------------------
S&P Global Ratings said that it affirmed its 'BB' long-term and
'B' short-term corporate credit ratings on Greece-based cement
producer Titan Cement Co. S.A.  The outlook is positive.

S&P also affirmed its 'BB' issue ratings on the EUR300 million
fixed-rate notes due July 2019 and EUR200 million fixed-rate
notes due January 2017.

In addition, S&P is assigning its 'BB' long-term corporate credit
ratings to 100%-owned finance subsidiary Titan Global Finance
PLC, and S&P's 'BB' issue rating to the proposed new EUR250
million fixed-rate notes.

The issue rating is equalized with the long-term corporate credit
rating on Titan Cement, reflecting S&P's view of the notes'
limited structural subordination to Titan Cement's obligations
after the proposed refinancing.  To evaluate the proposed notes'
structural subordination, S&P applied its general corporate
criteria.  S&P estimates that the company's ratio of priority
debt to total assets will be about 14% after the proposed
refinancing, as compared with a notching threshold of 15% for
speculative-grade rated issuers.

S&P expects the proceeds from the proposed EUR250 million fixed-
rate notes to be used for refinancing the EUR200 million fixed-
rate notes due January 2017.  The proposed notes will be
unsecured obligations of Titan Cement and rank pari passu with
the
EUR300 million fixed-rate notes.  S&P views the documentation for
the proposed notes as supportive for the noteholders.  The
documentation includes a provision whereby noteholders may
require repayment of the facility upon the occurrence of a
"change of control."

Demand in Titan's regional U.S. markets remains robust, supported
by good pricing conditions and the stronger U.S. dollar.  S&P
anticipates that Titan will continue to recapture volumes lost in
Egypt through 2013 and 2014 as a result of the countrywide
natural gas supply shortage.  Successful fuel conversion projects
are supporting this recovery and Titan's production in Egypt
doubled through 2015.  S&P expects pricing conditions to
stabilize and profitability to continue to strengthen through
2016, bolstered by the positive effect of input cost reductions.

S&P continues to assess Titan Cement's competitive position as
fair, partly owing to the group's smaller size when compared with
several of its higher-rated, heavy material peers.  This
translates into a higher exposure to local construction cycles
and country risk.  Titan remains vulnerable to construction end
markets that are highly cyclical and seasonal, as well as highly
capital and energy intensive.

Relative to peers, Titan has a greater exposure to higher-risk
countries like Egypt and Greece, meaning there is currently
greater potential downside against our base case.  This factors
in the potential risk of lower-than-expected recovery in Egypt
due to unexpected political, economic, or operational factors.
It also factors in the current political and economic situation
in Greece, and operational risk associated with potential
disruption for Titan's Greece-based production facilities.  S&P
notes that Titan's management may, at short notice, need to shift
capacity to plants outside of Greece in order to continue
satisfying overseas demand (currently being met by production
from Greece-based assets).  For these reasons, S&P applies its
negative comparable rating analysis modifier.

However, Titan Cement benefits from good regional positions.  In
Greece, the group holds a strong market share of about 40%-45%.
However, Titan Cement's locally installed capacity for cement
production in Greece is much greater than local consumption,
making the group somewhat dependent on exports to international
markets to manage capacity and cover fixed costs.

Titan Cement's credit metrics have historically deteriorated due
to falling cement volumes and cash flows.  These weaknesses
resulted from the prolonged downturn in Titan Cement's
construction end markets and political and economic disruption in
its key markets.  That said, the group has consistently reduced
net debt throughout the industry downturn.  S&P expects
management to slow the pace of deleveraging and anticipate that
Titan's credit metrics will stabilize at a level comfortably
commensurate with the existing significant financial risk
profile.  S&P expects that the group will continue to prioritize
accelerated capital expenditure as the global cement industry
continues its recovery.

Titan Cement has strong management and governance.  S&P bases its
assessment on the group's very prudent and proactive risk
management, particularly with regards to liquidity.  The strong
management and governance modifier also reflects the group's
solid track record of achieving targets, and its consistent
reduction of debt throughout the financial crisis, despite very
challenging operations and a portfolio of markets that have all
been hit by severe demand declines and/or political disruption.
In addition, S&P has not found any weaknesses in the company's
governance practices.  For Titan Cement, this assessment leads to
a positive one-notch adjustment to our initial anchor of 'bb-'.

S&P applies its "Ratings Above The Sovereign" criteria to Titan
Cement because, although domestic revenues derived from Greece
are currently lower than 25%, S&P considers Titan Cement's
exposure to its domicile as being the most material in terms of
capacity and asset base.  The group passes S&P's stress tests on
its operations in this jurisdiction.  S&P assesses the group's
sensitivity to Greek country risk as moderate because it
classifies Titan Cement as an exporting natural-resource
producer.

S&P's base case assumes:

   -- Mid-single-digit volume growth, driven primarily by strong
      demand in the U.S., although we expect Greek, Egyptian, and
      South Eastern European markets to potentially remain
      challenging.

   -- EBITDA margin improvement towards 19%-20% in 2016, driven
      by a stabilizing share of exports, further cost reductions,
      and price increases.

Based on these assumptions, and with supportive market
conditions, S&P arrives at these credit measures:

   -- Debt/EBITDA stabilizing at less than 3x; and

   -- Funds from operations (FFO) potentially rising to more than
      30%.

   -- Weak free operating cash flows due to sizeable capex plan.

S&P notes that in the past two years, Titan has experienced
macroeconomic headwinds, FX rate swings, and market conditions
that were tougher than S&P anticipated.  This may occur again in
2016 and could result in credit metrics that are slightly weaker
than S&P's base case.

The positive outlook reflects S&P's view that Titan will continue
to exhibit a robust performance in the U.S., with a potentially
significant recovery of volumes in Egypt supporting gradually
improving credit metrics.  S&P believes that Titan's performance
and liquidity is effectively delinked from Greek sovereign risk
and anticipate that Titan will be able to sustain positive
discretionary cash flow and adequate liquidity over the next 12
months.

S&P could upgrade Titan Cement if the company were to sustain FFO
to debt in excess of 30%, while at the same time generating
stronger free operating cash flows as capex returns to more
historic levels.  S&P would also expect industry and market
conditions to be supportive of an upgrade, specifically full
recovery of Egyptian volumes and no significant operational
disruption arising from Greece-based production facilities.

S&P could revise the outlook to stable if it no longer believes
that Titan Cement's core credit metrics will improve from
significant financial risk profile levels.  This could occur if
economic recovery, and therefore demand, in some of Titan's main
markets, notably Egypt or the U.S., was to falter.  Pressure on
the ratings could also arise if Titan Cement's liquidity
deteriorates.



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EIRCOM FINANCE: Moody's Assigns (P)B2 Rating to EUR500MM Notes
--------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B2
rating, with a loss given default assessment of LGD3, to the
EUR500 million senior secured notes due 2022 to be issued by
eircom Finance Designated Activity Company (eircom Finance DAC),
formerly eircom Finance Limited, an indirectly wholly-owned
subsidiary of telecommunications company eircom Holdings
(Ireland) Limited (eir).  The senior secured notes, along with
the senior bank facilities issued by eircom Finco S.a.r.l. are
guaranteed by eir and certain subsidiaries.

All other ratings remain unchanged, including the B2 corporate
family rating (CFR) and B2-PD probability of default rating of
eir and the existing instrument ratings.  The outlook on all the
ratings remains positive.

"We have assigned a provisional (P)B2 rating to eir's proposed
bond issuance in line with the company's B2-rated outstanding
senior credit facility, as the proposed senior secured notes
benefit from the same guarantors and are secured with the same
collateral", says Ivan Palacios, a Moody's Associate Managing
Director and lead analyst for eir.

"This refinancing exercise is credit positive for eir, as the new
notes will be used to refinance existing debt at a lower interest
rate, thereby improving coverage ratios and covenant headroom,
and extending its debt maturity to 2022", adds Mr Palacios.

In addition, the company is in the process of raising a EUR150
million revolving credit facility, which will further strengthen
the company's liquidity sources.

Proceeds from this bond issuance will be used to redeem the
EUR350 million guaranteed senior secured notes due 2020 issued by
eircom Finance DAC, as well as the outstanding EUR159 million
term loan B2 issued by eircom Finco S.a.r.l., together with a
marginal amount of cash.  Moody's will withdraw the B2 ratings on
these notes following their redemption, which is expected to be
on June 17, 2016, as well as the B2 ratings on the term loan B2.

Moody's issues provisional ratings in advance of the final sale
of securities and these ratings reflect the rating agency's
preliminary credit opinion regarding the transaction only.  Upon
a conclusive review of the final documentation, Moody's will
endeavor to assign a definitive rating to the proposed debt
instruments.  The definitive ratings may differ from the
provisional rating.

RATINGS RATIONALE

The assignment of the (P)B2 rating on the proposed senior secured
notes is in line with eir's CFR and with the rating on the EUR2.0
billion (outstanding) senior credit facility.  The new notes are
guaranteed by the same entities that guarantee the senior credit
facility, and are secured over the same collateral on a pari
passu basis with the senior credit facility.

This refinancing exercise is leverage neutral and does not have
an impact on eir's rating or its positive outlook.  However,
there are a number of positive considerations from this
refinancing, including (1) the expected improvement in coverage
ratios, covenant headroom and cash flow generation, owing to the
lower cost of debt of the new notes; and (2) the extension of the
debt maturity profile to 2022, from 2020 in the case of the
senior secured notes and 2019 regarding the term loan B2.

In addition, the new EUR150 million revolving credit facility
will strengthen eir's liquidity profile, increasing its sources
of liquidity and enhancing its flexibility in the event of
unexpected liquidity needs.

The B2 CFR reflects (1) eir's integrated business model; (2) its
strong position in the fixed-line market as Ireland's incumbent
operator, and its position as the third-largest operator in the
mobile segment; (3) the potential for its competitive position to
strengthen over time, as a result of its accelerated investment
plan in fibre and 4G networks; and (4) Moody's expectation of
positive free cash flow generation once eir completes the current
investment cycle.

However, the rating also reflects (1) eir's high leverage,
although Moody's expects deleveraging from current levels; (2)
the challenging competitive environment in the Irish telecoms
market; and (3) its IAS 19 accounting pension deficit.

                  RATIONALE FOR THE POSITIVE OUTLOOK

The positive outlook reflects eir's strong position within the B2
rating category, with the potential for moving to B1 on the basis
of further improvements in performance, as well as operational
and financial measures taken by management.

                 WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on the rating would be supported by continued
improved operating performance, with growth in revenues and
EBITDA leading to lower leverage such as adjusted debt/EBITDA
sustainably falling below 5.0x.  Upward rating pressure would
also develop if the group were to generate growing positive free
cash flows and to maintain a sound liquidity profile, with
comfortable headroom under financial covenants.

Downward pressure on the rating could materialize if the group
fails to execute its business plan or if pricing dynamics
deteriorate, leading to weaker-than-expected credit metrics,
including adjusted debt/EBITDA sustainably above 5.5x, and
persistently negative free cash flow generation.  Given the
volatility of eir's IAS 19 pension deficit, the B2 rating with a
positive outlook incorporates the potential for moderate
deviations from these ranges on a temporary basis.

Moody's would also be concerned if eir's liquidity came under
stress as a result of a weaker-than-expected operating
performance or larger-than-planned cash outflows for capex or
voluntary leavers.

LIST OF AFFECTED RATINGS

Assignments:

Issuer: eircom Finance Designated Activity Company
  Backed Senior Secured Regular Bond/Debenture, Assigned (P)B2
   (LGD 3)

                         PRINCIPAL METHODOLOGIES

The principal methodology used in this rating was Global
Telecommunications Industry published in December 2010.

eircom Holdings (Ireland) Limited is the holding company of the
eir group, the principal provider of fixed-line
telecommunications services in Ireland, with a revenue share of
the fixed-line market of approximately 49% (according to ComReg).
The group is also the third-largest mobile operator in Ireland,
with a subscriber market share of approximately 21% (excluding
mobile broadband and Machine to Machine, according to ComReg).
eir reported revenue of EUR1.3 billion and adjusted EBITDA of
EUR518 million for the last 12 months ended March 2016.


EIRCOM FINANCE: S&P Assigns 'B' Rating to EUR500MM Sr. Sec. Notes
-----------------------------------------------------------------
S&P Global Ratings assigned its 'B' issue rating with a '3'
recovery rating to the proposed EUR500 million senior secured
notes, due 2022, to be issued by eircom Finance Designated
Activity Company, a subsidiary of eircom Holdings Ltd.  The
Ireland-based fixed-line telecommunications company intends to
use the proceeds of the proposed notes to refinance the existing
EUR350 million senior secured notes and repay a portion of the
existing term loan B.

S&P understands that the proposed notes will rank pari passu with
the existing senior secured facilities borrowed at the eircom
Finco S.a.r.l. level, as per the terms of the intercreditor
agreement.

Concurrently with the launch of the proposed notes, the company
is requesting the consent of the senior secured lenders to add a
new EUR150 million revolving credit facility (RCF) to the senior
facility agreement.  The RCF would rank pari passu with the rest
of the facilities and notes.

The proposed notes' documentation permits additional debt
incurrence if the net leverage ratio remains below 4.50x and
dividend payments if the net leverage ratio remains below 3.75x.
The proposed documentation also includes exceptions to the change
of control clause.  Up to 18 months from the proposed issuance,
the change of control clause will not be triggered if the net
leverage is below 4.5x.  After 18 months from the issue date, the
net leverage would need to be below 4.0x.

S&P's 'B' issue rating with a '3' recovery rating on the existing
senior secured facilities borrowed at the eircom Finco S.a.r.l
level remains unchanged.  The recovery rating is at the lower of
the 50%-70% range reflecting the large amount of senior secured
debt and the pension deficit.

S&P's hypothetical default scenario assumes continual
deterioration in operating performance.  S&P envisage, among
other factors, pressure on revenues and operating margins due to
competition from alternative providers and new entrants, weaker
macroeconomic conditions, and no substantial additional revenues
from recent investments in fiber broadband and 4G.

S&P values eircom as a going concern in view of its established
customer base and network assets.

Simulated default assumptions

   -- Year of default: 2019
   -- EBITDA at emergence: EUR315 million
   -- Implied enterprise value multiple: 5x
   -- Jurisdiction: Ireland

Simplified waterfall

   -- Net enterprise value at default (after administration
      costs): EUR1.5 billion
   -- Priority claims: EUR180 million
   -- Secured debt claims: EUR2.6 billion*
      -- Recovery expectation: 50%-70% (lower half of the range)

*All debt amounts include six months of prepetition interest.



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


ACTA SPA: Receiver Sets July 1 Deadline for Irrevocable Bids
------------------------------------------------------------
Angelo Bachi, the Official Receiver of Acta s.p.a. (Bankruptcy
No. 92/15 R.F., Court of Pisa), is soliciting irrevocable bids to
purchase a clean energy company in a single lot consisting of a
property and its land located in Via Lavoria 56/G, Crespina
Lorenzana (PI), owned by ACTA, in addition to equipment, plant,
machinery, trademarks, patents and other registered and
unregistered intellectual and industrial property rights, know-
how, stock, consumables, and vehicles.  ACTA s.p.a. was listed on
the London Stock Exchange, AIM ISIN IT0003891444 sector, owned by
the bankrupt ACTA s.p.a., and leased under the business lease
agreement through deed by Notary Cerasi, file no. 12655, volume
no. 6931 dated 18/06/2015, all as more fully described and
detailed in the order for sale, and in the documents published on
www.astegiudiziarie.it

Those wishing to accept this call to bid shall send their
binding, firm and irrevocable bid to the attention of
the Official Receiver, effective until July 31, 2016, and
no later than 6:00 p.m. (Italian time) on July 1, 2016,
in a closed envelope (sent by registered mail with
return receipt and/or by courier) bearing the reference
"Binding bid ACTA s.p.a. - transfer of company".

For information, please contact the Official Receiver at:

   Angelo Bachi
   Official Receiver
   Tel: +39/0571/49331 - 484185
   Fax: +39/0571/484186
   E-mail: consulenzeaziendali@leonet.it
           f92.2015pisa@pec.it

The judge overseeing the bankruptcy proceedings is Giovanni
Zucconi.


DIAPHORA 3: July 11 Residential Complex Bid Deadline Set
--------------------------------------------------------
Diaphora 3 Fund, in liquidation pursuant to Art. 57 TUF, is
putting up for sale Polpenazze del Garda (BS), exclusive
residential complex composed of three property units as described
in the appraisal reported dated May 2, 2016 drawn up by Surveyor
Roberto Cirelli.

Starting price: EUR6,500,000 in addition to applicable tax.

Bid deadline: 12:00 a.m. on July 11, 2016, bids to be submitted
at the office of Notary Pietro Barziza in Desenzano del Garda
(BS), Piazza Duomo no. 17.

Date of sale: 5:00 p.m. on July 12, 2016, at the office of the
Notary.

Details and procedures and sales regulations are available at
www.liquidagest.it



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


COTT CORP: Moody's Affirms B2 CFR, Outlook Stable
-------------------------------------------------
Moody's Investors Service affirmed Cott Corporation's ratings,
including the company's B2 Corporate Family Rating, the B2-PD
Probability of Default Rating, and the B3 rating on its existing
$525 million senior unsecured debt, and Ba3 on its second lien
secured debt following the announcement that it has entered into
a definitive agreement to acquire Eden Springs (Hydra Dutch
Holdings 2 B.V., B2, negative) in a deal valued at approximately
Euro 470 million (US $530 million).  Eden is a leading provider
of water and coffee delivery services to homes and offices in a
variety of European countries, Israel and Russia.  Moody's
expects the transaction to close in the third quarter of fiscal
2016.  The rating outlook is stable.

                         RATINGS RATIONALE

"Cott's B2 Corporate Family Rating reflects its growing
geographic and business diversification following the acquisition
of Eden Springs, continuing its transformation away from its
legacy private label beverage business which has been in decline"
said Linda Montag, Moody's Senior Vice President.  "While
leverage will rise post-acquisition it will remain acceptable for
the current rating with debt/EBITDA (including Moody's standard
adjustments) at around 4.8 times at closing" she added.
Integration risk exists given the addition of numerous new
markets and customers. However Cott's successful integration of
US-based water services company DS Services of America (DSSA),
acquired in 2014, and Canadian-based Aqua Terra in 2015 provide a
strong platform from which to manage the addition of Eden.
Moody's notes that the rating incorporates the expectation that
Cott will remain acquisitive as it seeks to continue to grow away
from its core private label business.

Cott is exposed to long-term declining volume trends in the
carbonated soft drinks and juice categories but the entry into
water services businesses in the US, Canada and now European
geographies are transforming the company.  Cott's product and
customer concentration, previously a concern in the legacy
private label business, will further improve with the Eden
transaction while profitability will benefit due to margins in
the water services business that exceed those of private label.
Carbonated soft drinks, once about a third of the company's total
EBITDA will fall to about 13% after the Eden transaction, while
Cott's largest retail exposure, will fall from 28% before both
DSSA and Eden to about 11% after the latest transaction.  Moody's
notes that the water services businesses are exposed to
potentially volatile resin costs and to macroeconomic variables,
most notably employment rates which can cause slowdowns in
economic recessions.

Moody's took these rating actions:

Cott Corporation

Ratings affirmed:

  Corporate Family Rating at B2;
  Probability of Default rating at B2-PD;
  Speculative Grade Liquidity Rating at SGL-2

Cott Beverages, Inc.

Ratings affirmed:

  $525 million of senior unsecured debt at B3 (LGD5);
  $625 million of senior unsecured debt at B3 (LGD5)

DS Services of America, Inc.

Ratings affirmed:

  $350 million of senior secured 2nd lien debt at Ba3 (LGD2)

The stable outlook assumes that the acquisition of Eden will be
successful and will not become a distraction to Cott.  It also
assumes that no further large debt financed acquisitions or share
buybacks will be contemplated before leverage is reduced.

Given the potential for volatility in Cott's operating
performance, a ratings upgrade would require debt-to-EBITDA
approaching 4 times on a sustainable basis, complemented by a
good liquidity profile and demonstrated positive momentum in
volumes, revenues, and profitability.  A decline in earnings as a
result of volume declines, margin contraction, a weakening of
Cott's liquidity, or an increase in leverage such that debt-to-
EBITDA materially exceeds 5.5 times could result in a ratings
downgrade.

Cott, based in Toronto, Ontario, and Tampa, Florida, is one of
the world's largest private-label and contract manufacturing
beverage companies and has annual sales of approximately $3
billion.  Cott's product portfolio includes carbonated soft
drinks; clear, still and sparkling flavored waters; juice; juice-
based products; bottled waters; energy related drinks; and ready-
to-drink teas. Cott's customers include many of the largest
national and regional grocery, drugstore and convenience store
chains, and wholesalers. Cott is also a provider of bottled
water, coffee and related services delivered directly to
residential and commercial customers in the US and Canada.  The
core business of the water services segment is the bottling and
direct delivery of drinking water in 3 and 5 gallon bottles to
homes and offices and the rental of water dispensers.  The
company also sells water in smaller bottles, cups, coffee,
flavored beverages, powdered sticks and water filtration devices.

Headquartered in Switzerland, Hydra Dutch Holdings 2 B.V. is the
parent holding company of Eden Springs, a leading provider of
water and coffee solutions across Europe, Russia and Israel.  It
had 2015 sales of over Euro 360 million.

The combined business will have over $3.3 billion in sales and
will become the clear number one player in the Home Office Water
Services business in both North America and Europe.

The principal methodology used in these ratings was Global Soft
Beverage Industry published in May 2013.


JUBILEE CLO 2015-XVI: S&P Affirms B- Rating on Class F Notes
------------------------------------------------------------
S&P Global Ratings affirmed its credit ratings on Jubilee CLO
2015-XVI B.V.'s class A-1, A-2, B-1, B-2, C, D, E, and F notes
following the transaction's effective date as of May 10, 2016.

Most European cash flow collateralized loan obligations (CLOs)
close before purchasing the full amount of their targeted level
of portfolio collateral.  On the closing date, the collateral
manager typically covenants to purchase the remaining collateral
within the guidelines specified in the transaction documents to
reach the target level of portfolio collateral.  Typically, the
CLO transaction documents specify a date by which the targeted
level of portfolio collateral must be reached.  The "effective
date" for a CLO transaction is usually the earlier of the date on
which the transaction acquires the target level of portfolio
collateral, or the date defined in the transaction documents.
Most transaction documents contain provisions directing the
trustee to request the rating agencies that have issued ratings
upon closing to affirm the ratings issued on the closing date
after reviewing the effective date portfolio (typically referred
to as an "effective date rating affirmation").

An effective date rating affirmation reflects S&P's opinion that
the portfolio collateral purchased by the issuer, as reported to
S&P by the trustee and collateral manager, in combination with
the transaction's structure, provides sufficient credit support
to maintain the ratings that S&P assigned on the transaction's
closing date.  The effective date reports provide a summary of
certain information that S&P used in its analysis and the results
of its review based on the information presented to S&P.

S&P believes the transaction may see some benefit from allowing a
window of time after the closing date for the collateral manager
to acquire the remaining assets for a CLO transaction.  This
window of time is typically referred to as a "ramp-up period."
Because some CLO transactions may acquire most of their assets
from the new issue leveraged loan market, the ramp-up period may
give collateral managers the flexibility to acquire a more
diverse portfolio of assets.

For a CLO that has not purchased its full target level of
portfolio collateral by the closing date, S&P's ratings on the
closing date and prior to its effective date review are generally
based on the application of S&P's criteria to a combination of
purchased collateral, collateral committed to be purchased, and
the indicative portfolio of assets provided to S&P by the
collateral manager, and may also reflect its assumptions about
the transaction's investment guidelines.  This is because not all
assets in the portfolio have been purchased.

When S&P receives a request to issue an effective date rating
affirmation, it performs quantitative and qualitative analysis of
the transaction in accordance with S&P's criteria to assess
whether the initial ratings remain consistent with the credit
enhancement based on the effective date collateral portfolio.
S&P's analysis relies on the use of CDO Evaluator to estimate a
scenario default rate at each rating level based on the effective
date portfolio, full cash flow modeling to determine the
appropriate percentile break-even default rate at each rating
level, the application of S&P's supplemental tests, and the
analytical judgment of a rating committee.

In S&P's published effective date report, it discusses its
analysis of the information provided by the transaction's trustee
and collateral manager in support of their request for effective
date rating affirmation.  In most instances, S&P intends to
publish an effective date report each time it issues an effective
date rating affirmation on a publicly rated European cash flow
CLO.

On an ongoing basis after S&P issues an effective date rating
affirmation, it will periodically review whether, in its view,
the current ratings on the notes remain consistent with the
credit quality of the assets, the credit enhancement available to
support the notes, and other factors, and take rating actions as
it deems necessary.

RATINGS LIST

Jubilee CLO 2015-XVI B.V.

EUR412.8 mil senior secured and deferrable fixed- and floating-
rate notes (including EUR43.20 million subordinated notes)

Ratings Affirmed

Class            Rating

A-1              AAA (sf)
A-2              AAA (sf)
B-1              AA (sf)
B-2              AA (sf)
C                A (sf)
D                BBB (sf)
E                BB (sf)
F                B- (sf)



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


CAIXA ECONOMICA MONTEPIO: Moody's Cuts Sr. Debt Rating to B3
------------------------------------------------------------
Moody's Investors Service has downgraded to B3 from B1 the
long-term deposit and senior debt ratings of Portugal's Caixa
Economica Montepio Geral.  The rating agency has also downgraded
(1) The bank's baseline credit assessment (BCA) and adjusted BCA
to caa1 from b3; (2) the bank's dated subordinated program
ratings to (P)Caa2 from (P)Caa1; (3) the bank's junior
subordinated program ratings to (P)Caa3 from (P)Caa2; and (4) the
bank's long-term Counterparty Risk Assessment (CR Assessment) to
B1(cr) from Ba3(cr).  The outlook on Montepio's long-term deposit
and senior debt ratings has been changed to negative.

The bank's Not-Prime short-term deposit and program ratings and
its short-term CRA were unaffected by the rating action.

The downgrade reflects (1) the deterioration of Montepio's credit
fundamentals, notably in terms of asset risk and profitability,
which have resulted in a weakened risk-absorption capacity for
the bank; and (2) the changes to the bank's liability structure
with a decline in the volume of bail-in-able debt.

RATINGS RATIONALE

   -- RATIONALE FOR DOWNGRADING THE BCA

The downgrade of Montepio's BCA to caa1 from b3 reflects the
sharp deterioration in credit fundamentals namely in terms of
asset risk and profitability, which has weakened the bank's
overall risk-absorption capacity, despite the recent capital
increase amounting to EUR270 million.

At end-March 2016, Montepio's non-performing loan (NPL) ratio
(credit-at-risk ratio as defined by the Bank of Portugal)
increased to 15.3%, which stands significantly above the 12.8%
reported a year earlier (14.3% at end-December 2015) and above
the system average of 12.0% at year-end 2015 (latest available
data). The coverage ratio (measured as loan loss reserves as a
percentage of credit at risk) declined to 52.8% at end-March
2016, from 66.8% a year earlier (56.1% at end-December 2015),
which also stands below the 72.2% of Portuguese banking as of the
same date. Montepio's asset risk is also challenged by other
problematic exposures, such as real-estate assets acquired by the
bank over the recent years.  If these are included, the
problematic assets ratio rises to 22.4% at end-December 2015,
above the 20.3% reported a year earlier and indicating the
magnitude of the existing balance-sheet pressures the bank faces.

In downgrading Montepio's ratings, Moody's has also taken into
account the bank's very limited capacity to generate recurring
earnings.  At year-end 2015, the bank reported a loss of EUR242
million, which compares to a loss of EUR185 million a year
earlier and despite a reduced level of provisions (down by 51%
year-on-year).  The rating agency views that it will be very
challenging for Montepio to revert current negative profitability
trends in 2016 (highlighted by the EUR20 million loss reported at
end-March 2016), given the persisting high provisioning costs and
very weak recurring revenues, that are challenged by subdued
business volumes and the ongoing low interest-rate environment.

However, Moody's acknowledges the benefits of the EUR270 million
capital increase that was fully subscribed by Montepio's parent
(Montepio Geral Associacao Mutualista,unrated) in March 2016.
This transaction raised the bank's tangible common equity (TCE)
ratio to 7.8% at end-March 2016 from 5.9% at end-December 2015.
However, Montepio's capital buffers are still very weak when
compared with its asset risk profile.

The rating action incorporates the bank's efforts to undertake a
restructuring of its operations, that will namely imply the sale
of non-core assets.  However, Moody's cautions that the long-term
benefits of such restructuring measures will take some time
before they materialize given Portugal's weak operating
environment and Montepio's limited capital resources.

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

The downgrade of Montepio's deposits and senior debt to B3 from
B1 reflects (1) the downgrade of the bank's BCA to caa1 from b3;
and (2) the results of Moody's Advanced Loss Given Failure (LGF)
Analysis.

Taking account of the bank's balance sheet structure at end-
December 2015 and its near term funding plan, the rating agency's
LGF Analysis indicates that the bank's deposits and senior debt
are likely to face low loss-given failure, due to the loss
absorption provided by subordinated debt, as well as the volume
of deposits and senior debt themselves.  This results in a
Preliminary Rating Assessment (PRA) of b3 for deposits and senior
debt, one-notch above the BCA.  This is lower than under the
previous analysis, which was based on data as of end June 2015
and resulted in a two notch uplift to the PRA of b2, because the
bank has since amortized a significant volume of debt
instruments, which have reduced the loss absorption for deposits
and senior debt liabilities issued by the bank.

Moody's assessment of low probability of government support for
Montepio results in no uplift for the deposit and the senior debt
ratings of B3.

   -- RATIONALE FOR DOWNGRADING THE CR ASSESSMENT

As part of the rating action, Moody's has also downgraded to
B1(cr) from Ba3(cr) the long-term CR Assessment of Montepio,
three notches above the adjusted BCA of caa1.  The CR Assessment
is driven by the banks' adjusted BCA, low likelihood of systemic
support and by the cushion against default provided to the senior
obligations represented by the CR Assessment by subordinated
instruments amounting to 15% of tangible banking assets.

   -- RATIONALE FOR THE NEGATIVE OUTLOOK

The outlook on Montepio's long-term deposit and senior debt
ratings is negative, reflecting Moody's view of persisting
downside risks to the bank's credit profile given the very weak
asset risk and profitability trends.  These downside risks could
develop if Montepio's capital buffers are eroded from current
very weak levels and are not reinforced in a timely fashion
through a capital injection, likely to be funded by the parent as
in past occasions.

                 WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on Montepio's standalone BCA could be driven by
clear evidence that the bank's risk-absorption capacity is
improving, along with a sustainable recovery in the bank's asset
risk profile and recurring earnings.

Downward pressure could be exerted on Montepio's standalone BCA
if capital levels decline further and risk the near-term
compliance with prudential regulatory requirements.

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

Montepio's senior unsecured debt and deposit ratings could also
change as a result of changes in the loss-given failure faced by
these securities.

LIST OF AFFECTED RATINGS

Issuer: Caixa Economica Montepio Geral

Downgrades:

  Adjusted Baseline Credit Assessment, downgraded to caa1 from b3
  Baseline Credit Assessment, downgraded to caa1 from b3
  Long-term Counterparty Risk Assessment, downgraded to B1(cr)
   from Ba3(cr)
  Senir Unsecured Medium-Term Note Program, downgraded to (P)B3
   from (P)B1
  Junior Subordinate Medium-Term Note Program, downgraded to
   (P)Caa3 from (P)Caa2
  Subordinate Medium-Term Note Program, downgraded to (P)Caa2
   from (P)Caa1
  Senior Unsecured Regular Bond/Debenture, downgraded to B3
   Negative from B1 Stable
  Long-term Deposit Ratings, downgraded to B3 Negative from B1
   Stable

Outlook Actions:

Outlook, changed to Negative from Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
published in January 2016.


CAIXA GERAL: Moody's Reviews Deposits B1 Rating for Downgrade
-------------------------------------------------------------
Moody's Investors Service has placed on review with direction
uncertain the A3 ratings of the mortgage covered bonds issued by
Caixa Geral de Depositos S.A. (the issuer or CGD) (deposits B1 on
review for downgrade; adjusted baseline credit assessment b3 on
review uncertain; counterparty risk (CR) assessment Ba2(cr) on
review uncertain), governed by the Portuguese covered bond
legislation.

                          RATINGS RATIONALE

This rating action follows Moody's decision to place CGD's
Ba2(cr) Counterparty Risk (CR) Assessment on review with
direction uncertain.

                     KEY RATING ASSUMPTIONS/FACTORS

Moody's determines covered bond ratings using a two-step process:
an expected loss analysis and a TPI framework analysis.

EXPECTED LOSS: Moody's uses its Covered Bond Model (COBOL) to
determine a rating based on the expected loss on the bond.  COBOL
determines expected loss as (1) a function of the probability
that the issuer will cease making payments under the covered
bonds (a CB anchor event); and (2) the stressed losses on the
cover pool assets following a CB anchor event.

The CB anchor for this program is CR assessment plus 1 notches.
The CR assessment reflects an issuer's ability to avoid
defaulting on certain senior bank operating obligations and
contractual commitments, including covered bonds.

The cover pool losses for Caixa Geral de Depositos mortgage
covered bonds are 28.3%.  This is an estimate of the losses
Moody's currently models following a CB anchor event.  Moody's
splits cover pool losses between market risk of 23.3% and
collateral risk of 5%.  Market risk measures losses stemming from
refinancing risk and risks related to interest-rate and currency
mismatches (these losses may also include certain legal risks).
Collateral risk measures losses resulting directly from cover
pool assets' credit quality.  Moody's derives collateral risk
from the collateral score, which for this program is currently
7.5%.

The over-collateralization in the cover pool is 50.8%, of which
CGD provides 5.3% on a "committed" basis.  The minimum OC level
consistent with the A3 rating target is 8.5%, of which the issuer
should provide 3% in a "committed" form.  These numbers show that
Moody's is not relying on "uncommitted" OC in its expected loss
analysis.

For further details on cover pool losses, collateral risk, market
risk, collateral score and TPI Leeway across covered bond
programs rated by Moody's please refer to "Moody's Global Covered
Bonds Monitoring Overview", published quarterly.  All numbers in
this section are based on the most recent Performance Overview
(based on data, as of end March 2016).

TPI FRAMEWORK: Moody's assigns a "timely payment indicator"
(TPI), which measures the likelihood of timely payments to
covered bondholders following a CB anchor event.  The TPI
framework limits the covered bond rating to a certain number of
notches above the CB anchor.

For the mortgage covered bonds issued by Caixa Geral de Depositos
Moody's has assigned a TPI of Improbable.

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

The CB anchor is the main determinant of a covered bond program's
rating robustness.  A change in the level of the CB anchor could
lead to an upgrade or downgrade of the covered bonds. The TPI
Leeway measures the number of notches by which Moody's might
lower the CB anchor before the rating agency upgrades the covered
bonds because of TPI framework constraints.

The TPI assigned to Caixa Geral de Depositos mortgage covered
bonds is Improbable.  The TPI Leeway for this program is 0
notches.  This implies that Moody's might upgrade the covered
bonds because of a TPI cap if it lowers the CB anchor by one
notch, all other variables being equal.

A multiple-notch upgrade of the covered bonds might occur in
certain circumstances, such as (1) a country ceiling or sovereign
upgrade capping a covered bond rating or negatively affecting the
CB Anchor and the TPI; (2) a multiple-notch upgrade of the CB
Anchor; or (3) a material reduction of the value of the cover
pool.

                         RATING METHODOLOGY

The principal methodology used in these ratings was "Moody's
Approach to Rating Covered Bonds" published in August 2015.


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


HIDROELECTRICA SA: Mulls Suit Against Transelectrica, CEZ
---------------------------------------------------------
Business Review reports that Hidroelectrica SA said it will sue
grid operator Transelectrica and Czch utility CEZ because they
are trying to transfer part of the blame for the energy transport
and distribution network breakdown from June 1 in Valcea and
Arges counties.

It claims that the exploitation of hydroenergetical from Olt,
Arges and Dambovita at nominal power should not produce
imbalances in the transport and distribution network and that
this exploitation regime is normal from technical- energetic
point of view, as well as commercial, Business Review relates.
According to Business Review, it also says that the two operators
have the obligation of ensuring a transport and distribution
capacity in this kind of exploitation regime for any time
interval from the calendar year hours and to ensure a
supplementary transport reserve over the normal exploitation
regime of all the producers and consumers of the transport
network of the National Energy System.

Hidroelectrica, as cited by Business Review, said it was not
guilty and that it reacted efficiently from the moment of the
breakdown by opening the gates of their own station, unaffected
by the incident.  The company said its actions prevented a
general breakdown of the energy system that could have resulted
in potential losses of billions of euros for Romania,
Business Review relays.

The judicial administrator of Hidroelectrica is Remus Borza,
Business Review discloses.

As reported by the Troubled Company Reporter-Europe on April 5,
2016, Reuters related that Hidroelectrica has been run by a
court-appointed manager after it became insolvent for the second
time in early 2014.  It first became insolvent in 2012 after
losing US$1.4 billion over six years from contracts under which
it sold the bulk of its output below market prices, according to
Reuters.

Hidroelectrica is a Romanian state-owned electricity producer.



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


CREDITALLIANCE LLC: Placed Under Provisional Administration
-----------------------------------------------------------
The Bank of Russia, in accordance with its Order No. OD-1795,
dated June 8, 2016, revoked the banking license of Non-banking
Credit Organisation CreditAlliance, Limited Liability Company,
effective June 8, 2016.

The Bank of Russia took the extreme decision of banking license
revocation following the credit institution's failure to comply
with federal banking laws and Bank of Russia regulations,
recurrent violations, in the course of one year, of the Bank of
Russia regulations issued in accordance with Federal Law No.
115-FZ, dated 7 August 2001, "On Countering the Legalisation
(Laundering) of Criminally Obtained Incomes and the Financing of
Terrorism" because the capital adequacy ratio dropped below the
level of two per cent, because the capital fell below the minimal
amount established for the credit institution registration date
and taking into account the repeated actions under the Federal
Law "On the Central Bank of the Russian Federation (Bank of
Russia)".

While its assets quality was low, the credit organization failed
to evaluate the risks involved.  The appropriate risk assessment,
conducted in accordance with the supervisor's requirement, found
complete loss of capital of the credit institution.  Also, the
lender failed to comply with the Bank of Russia regulatory acts
in the field of countering the legalization (laundering) of
criminally obtained incomes and the financing of terrorism
insofar as the latter failed to make reliable submittals to the
competent authority.  Additionally, the credit institution was
involved in non-cash and cash operations of a dubious nature.

No action was taken by the lender's executive management or
owners to normalize its operations.  In the current environment,
the Bank of Russia, guided by Article 20 of the Federal Law "On
Banks and Banking Activity", accomplishes its duty and withdraws
a banking license from the credit organization.

In accordance with Bank of Russia No. OD-1796, dated June 8,
2016, a provisional administration was appointed to Non-banking
Credit Organisation CreditAlliance, to manage the credit
institution until the time a receiver or a liquidator is
appointed in accordance with Article 23.1 of the Federal Law "On
Banks and Banking Activity".  In accordance with federal laws,
the powers of the credit institution's executive bodies have been
suspended.

According to statements, as of May 1, 2016, the credit
institution Non-banking Credit Organisation CreditAlliance was
ranked 680th in the Russian banking system by assets.


FAR-EASTERN SHIPPING: Fitch Cuts LT Issuer Default Rating to 'RD'
-----------------------------------------------------------------
Fitch Ratings has downgraded Russia-based Far-Eastern Shipping
Company Plc's (FESCO) Long-Term Issuer Default Rating (IDR) to
'RD' (Restricted Default) from 'C'. This follows the uncured
expiry of a 30-day grace period for coupon payments initially due
on May 4, 2016 under FESCO's two Eurobonds issues maturing in
2018 and 2020.

Under Fitch's criteria, uncured expiry of any applicable grace
period following a payment default on capital markets security or
other material financial obligation indicates 'RD' ratings.

KEY RATING DRIVERS

Debt Restructuring Expected

FESCO has failed to pay a coupon on its two Eurobonds following
the expiry of a 30-day grace period. The company is in the
process of negotiating standstill agreements with bondholders.
FESCO expects to present its business plan to creditors in June
2016 and intends to negotiate a restructuring of the Eurobonds.

FESCO has also entered a seven-day grace period on one of its
local bonds after it failed to pay the coupon and amortizing
principal on May 31, 2016. On June 6, 2016 FESCO transferred
RUB120 million to National Settlement Depository for the six
coupon payments due under its local bonds series BO-02. However,
the company intends to negotiate with local bondholders a six-
month postponement of amortizing principal repayment to November
2016 as well as a waiver of their rights to claim early
redemption of the bonds (to the extent such right arises) for a
period of three months.

Insufficient Liquidity

Fitch assessed FESCO's liquidity position at end-1Q16 as
insufficient. The company's cash and cash equivalents of $US40
million at end-1Q16 and Fitch-projected 2016 negative free cash
flows (FCF) will not cover expected maturities of $US130 million
and coupon/interest payments over 1Q6-1Q17. Financial covenants
in the Eurobond documentation (ie fixed charge coverage ratio of
2.0x or higher and consolidated total leverage ratio of less than
3.25x) limit FESCO's ability to incur additional debt over
certain limits but their breach does not constitute an event of
default.

Low Coverage, High Leverage

At end-1Q16, FESCO's debt was $US912 million. Fitch has included
in its adjusted debt calculation $US220 million Eurobonds that
were bought back in May 2015 as these Eurobonds were pledged as
collateral under a $US44 million loan agreement provided by an
international bank for funding the Eurobond buyback and should be
released back to FESCO upon the final fulfillment of obligations
under this loan in February 2018.

Fitch said, "we expect FESCO's funds from operations (FFO) net
adjusted leverage to increase to above 10x over 2016-2018, from
slightly above 6x at end-2014 on the back of deteriorating
operational performance. We expect FESCO to report negative FFO
over 2016-2018 due to lower operational cash flows, resulting in
FFO interest coverage falling to below 1x over 2016-2018, from
slightly above 1x at end-2014."

Earnings Pressure Continues

The Russian transportation market remained under pressure in 2015
from a contracting domestic economy and rouble depreciation,
which affected import and transit transportation volumes and
consumer purchasing power. The container throughput in the Far
Eastern ports and rail container transportation in Russia
declined 24% and 8% yoy, respectively, in 2015. This had
negatively affected FESCO's operational performance across all
business segments in 2015 and 1Q16.

Fitch said, "In 1Q16, FESCO's VMTP container throughput, inter-
modal transportation volumes and rail cargo turnover fell 22%,
28% and 27%, respectively. FESCO reported a 38% yoy drop in
revenue in US dollar-equivalent in 1Q16. We expect 2016 to be
another challenging year for container transportation as we
forecast Russian GDP to decline by a further 0.7% and the rouble
to remain weak."

FX Risks Still High

Despite the buyback of foreign-denominated debt in May 2015 and
conversion of certain port tariffs to US dollars from rouble at
end-2014, FESCO remains exposed to foreign currency fluctuations
as 84% of its total debt at end-1Q16 was denominated in foreign
currencies, mainly US dollars. About 60% of revenue in 1Q16 was
US dollar-linked or US dollar denominated.

Expected Negative FCF

Fitch said, "Despite significant reduction in capex to a
maintenance level of about $US20m annually versus $US62 million
on average over 2012-2014 we expect FESCO to generate negative
FCF. This is mainly due to weaker cash generation from operations
on the back of falling volumes, continued pressure on rates and
high interest/coupon payments on debt. We do not expect operating
cash flows to improve in 2016."

KEY ASSUMPTIONS

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

-- Russian GDP decline of 0.7% in 2016 and growth of 1.3%-2% in
    2017-2018; Chinese GDP growth of 5.8%-6.9% over 2016-2018
-- Russian CPI of 6%-8.2% over 2016-2018
-- No dividends payments
-- Capex of about $US20 million annually over 2016-2018
-- $US/RUB exchange rate of 70-73 over 2016-2018

RATING SENSITIVITIES

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

-- FESCO entering into bankruptcy filings, administration,
    receivership, liquidation or other formal winding-up
    procedure.

Positive: The 'RD' rating will be revised to reflect the
appropriate IDR for the issuer's post-restructuring capital
structure, risk profile and prospects in accordance with relevant
criteria.

FULL LIST OF RATING ACTIONS

Far-Eastern Shipping Company Plc

-- Long-Term Foreign Currency IDR downgraded to 'RD' from 'C'
-- Long-Term Local Currency IDR downgraded to 'RD' from 'C'
-- National Long-Term Rating downgraded to 'RD(rus)' from
    'C(rus)'
-- Local currency senior unsecured rating affirmed at
    'C'/Recovery Rating 'RR6'

Far East Capital Limited S.A. (Luxembourg)

-- Foreign currency senior unsecured rating affirmed at
    'C'/Recovery Rating 'RR6'.


FAR-EASTERN SHIPPING: S&P Lowers CCR to 'SD' on Missed Payment
--------------------------------------------------------------
S&P Global Ratings lowered its long-term corporate credit rating
on Far-Eastern Shipping Co. PLC (FESCO) to 'SD' from 'CC'.

At the same time, S&P lowered the issue rating on the existing
senior secured notes due in 2018 and 2020 to 'D' from 'C'.

S&P removed the corporate credit and issue ratings from
CreditWatch, where it had placed them with negative implications
on May 4, 2016.

The downgrade follows FESCO's non-payment of interest due May 4,
2016 on its outstanding senior secured Eurobonds within the 30-
day grace period, which expired on June 3, 2016.  Under S&P's
criteria, it considers FESCO's missed interest payment to be a
payment default.

At the same time, the company announced that it is in
negotiations with its lenders, including the Eurobond holders and
holders of Russian ruble bonds (S&P do not rate the ruble-
denominated bonds) as a part of its capital-structure
optimization announced earlier this year.  While the company has
made no formal final offer, S&P understands some modifications to
the original conditions are being discussed including a deferral
of an amortization payment due on May 31, 2016 on the Russian
ruble bonds.  The coupon on the Russian ruble bonds was paid on
June 6, 2016.  S&P is likely to view the proposed changes as a
distressed restructuring if accepted because of FESCO's currently
very fragile liquidity situation among other things and because
S&P believes that the proposed amounts and conditions of payment
are likely to differ from their original promise.

S&P understands that the company is still current on its other
obligations such as financing leases, taxes, and debt to
suppliers.

S&P will raise the ratings from 'SD' and 'D' once it has
sufficient information on the company's business plan and longer-
term funding strategy, including any potential debt amendment or
further restructuring.


FINANCIAL STANDARD: Placed Under Provisional Administration
-----------------------------------------------------------
The Bank of Russia, by its Order No. OD-1797, dated June 8, 2016,
revoked the banking license of credit institution Financial
Standard Commercial Bank Limited or Financial Standard Bank from
June 8, 2016.

The Bank of Russia took such an extreme measure -- revocation of
the banking license -- because of the credit institution's
failure to comply with federal banking laws and Bank of Russia
regulations, due to the fact that the values of all capital
adequacy ratios of the bank are below two percent, because of
decrease in the bank capital below the minimum amount of the
authorized capital established as of the date of the state
registration of the credit institution, due to the bank's
inability to meet monetary obligations to creditors, and also
taking into account repeated applications within one year of
measures envisaged by the Federal Law "On the Central Bank of the
Russian Federation (Bank of Russia)".

Financial Standard Bank placed funds into low-quality assets and
did not create adequate provisions commensurate with risks
assumed.  Due to unsatisfactory quality of assets and subsequent
insufficient cash flows, the credit institution failed to timely
honor its obligations to creditors.  Besides, an adequate
assessment of the credit risk has revealed a full loss of capital
by the bank.  The credit institution was involved in dubious
payable-through operations.

The management and owners of the bank failed to take effective
measures to normalize its activities. Under these circumstances,
the Bank of Russia performed its duty on the revocation of the
banking license from the credit institution in accordance with
Article 20 of the Federal Law "On Banks and Banking Activities".

By its Order No. OD-1798, dated June 8, 2016, the Bank of Russia
has appointed a provisional administration to Financial Standard
Bank for the period until the appointment of a receiver pursuant
to the Federal Law "On the Insolvency (Bankruptcy)" or a
liquidator under Article 23.1 of the Federal Law "On Banks and
Banking Activities".  In accordance with federal laws, the powers
of the credit institution's executive bodies are suspended.

Financial Standard Bank is a member of the deposit insurance
system.  The revocation of the banking license is an insured
event as stipulated by Federal Law No. 177-FZ "On the Insurance
of Household Deposits with Russian Banks" in respect of the
bank's retail deposit obligations, as defined by law.  The said
Federal Law provides for the payment of indemnities to the bank's
depositors, including individual entrepreneurs, in the amount of
100% of the balance of funds but no more than 1.4 million rubles
per one depositor.

According to the financial statements, as of May 1, 2016,
Financial Standard Bank ranked 218th by assets in the Russian
banking system.


RAZGULAY GROUP: Rusagro Files Bankruptcy Claim in Moscow Court
--------------------------------------------------------------
Olga Popova and Maria Kiselyova at Reuters, citing materials of
the Moscow Arbitration Court, report that Russian farming
conglomerate Rusagro has filed a bankruptcy claim against
Razgulay.

Rusagro, a fast-growing pork and sugar producer, confirmed
submitting the claim, saying it was a technical move, Reuters
relates.

Rusagro acquired all existing debt, as well as around 20% of
shares of the Razgulay Group from Razgulay creditor VEB last
year, Reuters recounts.

Razgulay Group is one of Russia's largest agribusiness companies.
It is based in Moscow.



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


PYMES SANTANDER 6: DBRS Puts Series B Notes Under Review
--------------------------------------------------------
DBRS Ratings Limited placed the Series B Notes Issued by FTA
PYMES SANTANDER 6 Under Review with Positive Implications.

A full text copy of the press release is available free at:
https://is.gd/Fvbm7J


* DBRS Takes Rating Actions on 69 Note Classes from Spanish RMBS
----------------------------------------------------------------
DBRS Ratings Limited took rating actions on 69 classes of notes
from 35 Spanish residential mortgage-backed security (RMBS)
transactions. Of the 69 classes, 30 classes were upgraded, 36
classes were confirmed and three classes were downgraded.
Additionally, of the 30 classes of notes which were upgraded, 20
notes from 11 transactions were previously placed Under Review
with Positive Implications, a status that has subsequently been
removed. The rating actions taken are as follows:

-- AyT Goya Hipotecario IV, Fondo de Titulizacion de Activos
    Class A Mortgage-Backed Floating Rate Securitisation Notes
    removed from Under Review with Positive Implications and
    upgraded to AA (sf) from A (high) (sf)
-- AyT Goya Hipotecario IV, Fondo de Titulizacion de Activos
    Class B Mortgage-Backed Floating Rate Securitisation Notes
    removed from Under Review with Positive Implications and
    upgraded to BBB (high) (sf) from B (sf)
-- AyT Goya Hipotecario V, Fondo de Titulizacion de Activos
    Series A removed from Under Review with Positive Implications
    and upgraded to AA (sf) from A (high) (sf)
-- AyT Goya Hipotecario V, Fondo de Titulizacion de Activos
    Series B removed from Under Review with Positive Implications
    and upgraded to BBB (high) (sf) from B (sf)
-- BBVA RMBS 10 FTA Series A downgraded to A (high) (sf) from AA
    (sf)
-- BBVA RMBS 10 FTA Series B confirmed at BB (sf)
-- BBVA RMBS 11 Fondo de Titulizacion de Activos Series A
    downgraded from AA (sf) to A (high) (sf)
-- BBVA RMBS 11 Fondo de Titulizacion de Activos Series B
    confirmed at BBB (sf)
-- BBVA RMBS 11 Fondo de Titulizacion de Activos Series C
    confirmed at B (high) (sf)
-- BBVA RMBS 12 FTA Series A removed from Under Review with
    Positive Implications and upgraded to A (sf) from A
   (low) (sf)
-- BBVA RMBS 12 FTA Series B removed from Under Review with
    Positive Implications and upgraded to BB (high) (sf) from BB
    (sf)
-- BBVA RMBS 13 FTA Series A Notes removed from Under Review
    with Positive Implications and upgraded to A (high) (sf) from
    A (sf)
-- BBVA RMBS 13 FTA Series B Notes removed from Under Review
    with Positive Implications and upgraded to BB (high) (sf)
    from BB (sf)
-- BBVA RMBS 15, FTA Bonds removed from Under Review with
    Positive Implications and upgraded to A (high) (sf) from A
    (sf)
-- BBVA RMBS 16 FT Series A Notes confirmed at A (high) (sf)
-- BBVA RMBS 5 FTA Series A removed from Under Review with
    Positive Implications and upgraded to A (high) (sf) from A
    (sf)
-- BBVA RMBS 5 FTA Series B removed from Under Review with
    Positive Implications and upgraded to A (low) (sf) from BB
    (high) (sf)
-- BBVA RMBS 5 FTA Series C removed from Under Review with
    Positive Implications and upgraded to BBB (low) (sf) from B
    (sf)
-- BBVA RMBS 9, FTA Bonds removed from Under Review with
    Positive Implications and upgraded to A (high) (sf) from
    A (sf)
-- Caixabank RMBS 1, FTA Series A confirmed at A (sf)
-- Caixabank RMBS 1, FTA Series B confirmed at C (sf)
-- Fondo De Titulizacion De Activos, Santander Hipotecario 9
    Class A upgraded to AA (sf) from A (sf)
-- Fondo De Titulizacion De Activos, Santander Hipotecario 9
    Class B confirmed at CCC (sf)
-- Fondo De Titulizacion De Activos, Santander Hipotecario 9
    Class C confirmed at C (sf)
-- FT RMBS Prado II Class A Notes confirmed at AAA (sf)
-- FT RMBS Santander 4 Series A Notes confirmed at A (high) (sf)
-- FT RMBS Santander 4 Series B Notes confirmed at CCC (sf)
-- FT RMBS Santander 4 Series C Notes confirmed at C (sf)
-- FT RMBS Santander 5 Series A confirmed at A (low) (sf)
-- FT RMBS Santander 5 Series B confirmed at CCC (sf)
-- FT RMBS Santander 5 Series C confirmed at C (sf)
-- FTA RMBS Santander 1 Class A Notes confirmed at AA (sf)
-- FTA RMBS Santander 1 Class B Notes confirmed at CCC (sf)
-- FTA RMBS Santander 1 Class C Notes confirmed at C (sf)
-- FTA RMBS Santander 2 Series A Notes upgraded to AA (sf) from
    A (sf)
-- FTA RMBS Santander 2 Series B Notes confirmed at CCC (sf)
-- FTA RMBS Santander 2 Series C Notes confirmed at C (sf)
-- FTA RMBS Santander 3 Series A Notes confirmed at AA (sf)
-- FTA RMBS Santander 3 Series B Notes confirmed at CCC (sf)
-- FTA RMBS Santander 3 Series C Notes confirmed at C (sf)
-- FTA, SANTANDER HIPOTECARIO 7 Series A upgraded to AAA (sf)
    from AA (high) (sf)
-- FTA, SANTANDER HIPOTECARIO 7 Series B confirmed at CCC (sf)
-- FTA, SANTANDER HIPOTECARIO 7 Series C confirmed at C (sf)
-- FTA, SANTANDER HIPOTECARIO 8 Series A confirmed at AAA (sf)
-- FTA, SANTANDER HIPOTECARIO 8 Series B confirmed at CCC (sf)
-- FTA, SANTANDER HIPOTECARIO 8 Series C confirmed at C (sf)
-- IM BCC Cajamar 1 Series A upgraded to AA (sf) from A (high)
    (sf)
-- IM BCC Cajamar 1 Series B confirmed at C (sf)
-- IM BCG RMBS 2, FONDO DE TITULIZACION DE ACTIVOS Class A
    removed from Under Review Positive Implications and upgraded
    to A (high) (sf) from A (sf)
-- IM Cajamar 5 F.T.A. Class A Notes upgraded to A (sf) from A
    (low) (sf)
-- IM Cajamar 6 F.T.A. Class A Notes upgraded to A (sf) from A
    (low) (sf)
-- IM EVO RMBS 1 FT Series A Notes upgraded to A (high) (sf)
    from A (sf)
-- IM EVO RMBS 1 FT Series B Notes upgraded to BBB (high) (sf)
    from BBB (sf)
-- IM Grupo Banco Popular MBS 3 Series A downgraded to A (low)
    (sf) from A (sf)
-- IM Grupo Banco Popular MBS 3 Series B confirmed at C (sf)
-- IM Sabadell RMBS 2 Fondo De Titulizacion De Activos Class A
    Mortgage-Backed Floating Rate Securitisation Notes confirmed
    at AA (sf)
-- IM Sabadell RMBS 3 Fondo De Titulizacion De Activos Class A
    Mortgage-Backed Floating Rate Securitisation Notes confirmed
    at AA (high) (sf)
-- Rural Hipotecario X, Fondo de Titulizacion de Activos
    Series A confirmed at A (high) (sf)
-- Rural Hipotecario X, Fondo de Titulizacion de Activos
    Series B upgraded to BBB (high) (sf) from BBB (sf)
-- Rural Hipotecario X, Fondo de Titulizacion de Activos
    Series C upgraded to BB (high) (sf) from B (sf)
-- Rural Hipotecario XI, Fondo de Titulizacion de Activos
    Series A confirmed at A (high) (sf)
-- Rural Hipotecario XII, Fondo de Titulizacion de Activos
    Series A confirmed at A (high) (sf)
-- Rural Hipotecario XIV, Fondo de Titulizacion de Activos
    Series A removed from Under Review with Positive Implications
    and upgraded to A (high) (sf) from A (sf)
-- Rural Hipotecario XIV, Fondo de Titulizacion de Activos
    Series B removed from Under Review with Positive Implications
    and upgraded to BBB (sf) from BB (low) (sf)
-- Rural Hipotecario XV, Fondo de Titulizacion de Activos Series
    A removed from Under Review with Positive Implications and
    upgraded to A (high) (sf) from A (sf)
-- Rural Hipotecario XV, Fondo de Titulizacion de Activos Series
    B removed from Under Review with Positive Implications and
    upgraded to BBB (sf) from BB (sf)
-- Rural Hipotecario XVI, Fondo de Titulizacion de Activos
    Series A Notes removed from Under Review with Positive
    Implications and upgraded to A (high) (sf) from A (sf)
-- Rural Hipotecario XVI, Fondo de Titulizacion de Activos
    Series B Notes removed from Under Review with Positive
    Implications and upgraded to BBB (sf) from BB (sf)
-- Rural Hipotecario XVII, Fondo de Titulizacion de Activos
    Bonds confirmed at A (high) (sf)

The rating actions are results of a review of each transaction
following the publication of the DBRS's "European RMBS Insight
Methodology" (the Methodology) and "European RMBS Insight --
Spanish Addendum" (the Spanish Addendum or Addendum) on
May 17, 2016. The Methodology introduced a new proprietary
default model (European RMBS Insight Model or the Model) that
forecasts the expected defaults and losses of portfolios of
European residential mortgages. The Model combines a loan scoring
approach and dynamic delinquency migration matrices to calculate
loan level defaults and losses. The loan scoring models and
dynamic delinquency migration matrices are developed using
jurisdictional specific data on loans, borrowers and collateral
types. In addition, the European RMBS Insight Model uses a home
price model to generate market value declines (MVDs).

The Spanish Addendum outlines the country specific aspects of the
Methodology to estimate defaults and losses in Spain. Analysis of
the Spanish residential mortgages per the Spanish Addendum
includes indexation of the underlying property values for both
default and loss calculations. The Spanish Addendum details the
Spanish Mortgage Scoring Model (Spanish MSM), which was
constructed using logistic regression with 19 parameters from 15
variables determined to assess the relative risk of Spanish
residential mortgages. In addition, 16 risk segments were
estimated based on scoring of the universe of eligible loans (per
defined DBRS criteria) used to construct the Spanish MSM with a
delinquency migration matrix estimated for each risk segment
based on the observed roll rates. Rating scenario MVDs are
determined for each of the 19 autonomous Spanish regions (as well
as the national level) to calculate losses.

The ratings of 20 classes of notes were previously placed Under
Review with Positive Implications as a result of the updated
publication of "Legal Criteria for European Structured Finance
Transactions" (Legal Criteria) on 19 February 2016. The Legal
Criteria incorporated the Critical Obligation Ratings (COR) into
counterparty replacement and other rating threshold levels to
reflect an updated opinion on the reduced risk that these
critical exposures could pose to structured finance transactions.
As part of the Legal Criteria update, DBRS also provided more
granular rating levels for account bank institution replacements
and eligible investments. The removal of the Under Review with
Positive Implications status and subsequent upgrades of these
notes include account banks, which have been assigned a COR that
crosses a rating trigger level compared with previous
counterparty rating, as well as transactions that have rating
triggers at the new, granular levels described in the Legal
Criteria.

Each portfolio was analyzed using the European RMBS Insight
Model. Cash flow stresses were undertaken on each class of notes
to test the ability of the transaction to pay principal and
interest consistent with the terms and conditions for the
assigned ratings, given the rating scenario defaults and losses.



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


HOIST KREDIT: Moody's Raises Long-Term Issuer Rating to Ba1
-----------------------------------------------------------
Moody's Investors Service has upgraded Hoist Kredit AB (publ)
(Hoist)'s long-term issuer rating to Ba1 from Ba2 and assigned a
stable outlook.  At the same time, the rating agency upgraded the
long-term senior unsecured debt rating assigned to the company's
EMTN program to (P)Ba1 from (P)Ba2.  Hoist's standalone baseline
credit assessment (BCA), its Counterparty Risk Assessments and
the other assigned ratings are not affected by the rating action.

The rating action follows Hoist's announcement on May 26, that it
issued EUR250 million, 3.5 year notes under its newly established
EMTN program.  The issued debt increases the loss absorption
creditors would face in case of failure.

This rating action concludes the review on the issuer and EMTN
senior unsecured debt program ratings initiated on May 16, 2016.

RATINGS RATIONALE

The upgrade of Hoist's long-term ratings to Ba1 and (P)Ba1 from
Ba2 and (P)Ba2 respectively is based on the company's BCA of ba3
and the results of Moody's Advanced Loss Given Failure (LGF)
Analysis.

Hoist is one of the largest debt purchasers in Europe, with
SEK19.2 billion (EUR2.1 billion) in estimated remaining
collections over the next 120 months as of end-March 2016 and
SEK4.4 billion acquired portfolios in 2015.  The company acquires
non-performing consumer debt in eight countries across the
continent with plans to expand into new markets over the coming
years.

Taking account of the company's consolidated balance sheet
structure at end-March 2016 and its recently issued EMTN notes,
Moody's LGF Analysis indicates that Hoist's senior debt is likely
to face very low loss-given-failure, due to the loss absorption
provided by its own volume and the amount of debt subordinated to
it.  This results in a Preliminary Rating Assessment (PRA) of ba1
for senior debt, two notches above the BCA.  The improved PRA
reflects the increased debt level since end-March 2016, which, in
Moody's view, increases the protection available to senior bond
holders in case of Hoist's failure.

Since Moody's considers the probability of government support for
Hoist's senior liabilities to be low, the ratings do not
incorporate uplift from government support.

                  RATIONALE FOR THE STABLE OUTLOOK

The outlook on the long-term issuer rating is stable, reflecting
the favorable operating environment and Hoist's credit
fundamentals.

                WHAT COULD CHANGE THE RATINGS UP/DOWN

Hoist's senior ratings could be upgraded if the company were to
issue a significant amount of subordinated debt, reducing the
loss-given-failure of senior unsecured obligations.

Hoist's BCA could be upgraded if the company: (1) significantly
improves its profitability on a sustained basis without
increasing earnings volatility; (2) increases capital targets and
demonstrates ability to maintain high capital levels; and/or (3)
diversifies its business model.

The company's BCA could be downgraded if: (i) Hoist's funding
profile is no longer primarily made of customer deposits; (ii) it
experiences a protracted decrease in profitability or in its
solvency ratios; and/or (iii) Moody's assessment of Hoist's asset
risk deteriorates.  A downward movement in Hoist's BCA would
likely result in a downgrade of all ratings.

Upgrades:

Issuer: Hoist Kredit AB (publ)
  LT Issuer Rating (Foreign), Upgraded to Ba1 Stable from Ba2

Rating under review
  Senior Unsecured MTN (Foreign), Upgraded to (P)Ba1 from (P)Ba2

Outlook Actions:

Issuer: Hoist Kredit AB (publ)
  Outlook, Changed To Stable From Rating Under Review

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was Banks published
in January 2016.



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


BHS GROUP: Lord Myners Calls for Deeper Probe Into Collapse
-----------------------------------------------------------
Mark Vandevelde at The Financial Times reports that Lord Myners
has urged two parliamentary investigations to "dig far, and dig
deep" into possible impropriety surrounding the collapse of BHS
-- little more than a year after the high-street chain was sold
by Sir Philip Green for GBP1 to a consortium led by a former
bankrupt with no retail experience.

According to the FT, Lord Myners told the House "There are
clearly issues here of potential fraudulent preference, of
creditor preference, and of misappropriation of corporate assets
under the direction of the directors of the company".

"These things must be investigated properly, openly and
transparently."

Lord Myners made the remarks after mentioning an insolvency
service probe that business minister Anna Soubry had described as
an accelerated investigation into the activity of former BHS
directors, the FT notes.

He also raised questions concerning the legitimacy of
arrangements that reduce the tax bill Sir Philip's family pays on
interest and dividend income from its UK business interests, the
FT discloses.

The FT relates that the peer told the Lords: "HMRC must look into
the ownership structure and how it managed to convince itself
that these businesses are owned by Lady Green in tax-free Monte
Carlo, but run by her husband" from the UK, where he is subject
to tax but receives little income.

BHS fell into administration in April and will now close after
attempts to find a new buyer ended in failure last week, the FT
relays.

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


LOGISTICS UK 2015: Moody's Affirms B1 Rating on Class F Notes
-------------------------------------------------------------
Moody's Investors Service has affirmed the ratings of six classes
of Notes issued by Logistics UK 2015 PLC:

  GBP312.55 mil. Class A Notes, Affirmed Aaa (sf); previously on
   Aug 7, 2015, Definitive Rating Assigned Aaa (sf)
  GBP67.45 mil. Class B Notes, Affirmed Aa2 (sf); previously on
   Aug. 7, 2015, Definitive Rating Assigned Aa2 (sf)
  GBP67.45 mil. Class C Notes, Affirmed A2 (sf); previously on
   Aug. 7, 2015, Definitive Rating Assigned A2 (sf)
  GBP60.8 mil. Class D Notes, Affirmed Baa2 (sf); previously on
   Aug. 7, 2015, Definitive Rating Assigned Baa2 (sf)
  GBP76 mil. Class E Notes, Affirmed Ba2 (sf); previously on
   Aug. 7, 2015, Definitive Rating Assigned Ba2 (sf)
  GBP61.75 mil. Class F Notes, Affirmed B1 (sf); previously on
   Aug. 7, 2015, Definitive Rating Assigned B1 (sf)

RATINGS RATIONALE

The affirmation action reflects the stable performance of the
transaction since the definitive ratings were assigned at closing
in August 2015.  Since closing, the weighted average lease length
has reduced to 7.6 years from 8.2 years across the collateral
portfolio and annual rent has fallen by 5.9% to GBP56.8 million
from GBP60.4 million.  The drop in rent was mainly due to one of
the tenants, Polestar UK Print Ltd, moving into administration,
albeit the rent is currently being paid by the administrator.
Given the still high occupancy levels at 92% (excluding Polestar
UK Print Ltd lease), the expectation that the asset will not
remain structurally vacant and the healthy coverage level, this
performance change does not materially change Moody's assessment.

Moody's affirmation reflects a base expected loss in the range of
0%-10% of the current balance, which is in line with its
assessment at closing.  Moody's derives this loss expectation
from the analysis of the default probability of the securitized
loan (both during the term and at maturity) and its value
assessment of the collateral.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was Moody's
Approach to Rating EMEA CMBS Transactions published in July 2015.

Other factors used in these ratings are described in CMBS -
Europe: European CMBS: 2016-18 Central Scenarios published in
April 2016.

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

Main factors or circumstances that could lead to a downgrade of
the ratings are generally (i) a decline in the property values
backing the underlying loan, (ii) an increase in default risk
assessment, or (iii) a deterioration in the credit of the
counterparties, especially the account bank Elavon Financial
Services Limited (Aa2, P-1).

Main factors or circumstances that could lead to an upgrade of
the ratings are generally (i) an increase in the property values
backing the underlying loan, (ii) repayment of loans with an
assumed high refinancing risk, (iii) a decrease in default risk
assessment.

                    MOODY'S PORTFOLIO ANALYSIS

As of the May 2016 IPD, the transaction balance has remained the
same since origination at GBP 646 million.  The notes are
currently secured by 34 first-ranking legal mortgages over 42
commercial properties ranging in size, with the largest only 8%
of the current pool balance.  The pool has an above average
concentration in terms of geographic location (100% UK based) and
property type (100% Distribution Warehouse).

Moody's LTV ratio on the securitized pool is 79.13%.


* UNITED KINGDOM: Insolvency Figures Hit Lowest Levels in 7 Years
-----------------------------------------------------------------
http://www.ft.com/intl/cms/s/0/df3f775e-1de7-11e6-b286-
cddde55ca122.html#axzz4AzuCzRds
(Joy)

Kate Burgess at The Financial Times reports that high-profile
failures, administrators have found themselves dealing with the
lowest levels of corporate collapses for seven years.

In total, 3,694 companies in England and Wales became insolvent
in the first three months of 2016, the FT says, citing according
the Insolvency Service.  That was a slight increase on the
previous quarter, but fewer than in the same period in 2015 --
and some 42% down on the first quarter of 2009, when the
financial crisis was taking its toll, the FT notes.

According to the FT, of these latest insolvent groups, only 301
were put into administration -- whereby individual insolvency
practitioners are appointed to keep their ailing businesses going
and seek ways to repay creditors.  That was the lowest level
since the end of 2003, the FT states.

And the number of company liquidations -- when a business cannot
be sustained or sold and has to be wound up -- fell to its lowest
level, as a proportion of healthy businesses, since insolvency
records began, the FT discloses.


                            *********

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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Information contained herein is obtained from sources believed to
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