TCREUR_Public/160623.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Thursday, June 23, 2016, Vol. 17, No. 123



ERSTE GROUP: Moody's Raises Subordinated Debt Ratings to Ba1


UNIVEG HOLDING: Moody's Affirms B2 CFR, Outlook Altered to Stable


SAPPI LIMITED: Moody's Affirms Ba3 CFR & Changes Outlook to Pos.


NATIONAL BANK OF GREECE: Fitch Affirms Long-Term IDRs at 'RD'


DRUIDS GLEN: Exits Examinership Following Gulland Agreement
HACKETTS BOOKMAKERS: Potential Buyers Approach Liquidators


ALBA 8 SPV: Moody's Assigns Ba3 Rating to Class C Notes


COSAN LUXEMBOURG: Fitch Affirms 'BB+' Rating on Sr. Unsec. Notes
GALAPAGOS HOLDING: Moody's Changes Outlook on B2 CFR to Neg.
OXEA SARL: Moody's Lowers CFR to B3, Outlook Negative


CHAPEL BV 2003-I: S&P Raises Rating on Class B Notes to CCC+
OI BRASIL: Moody's Lowers Rating on EUR600MM Global Bonds to C
OI BRASIL: Fitch Affirms Rating on EUR600MM Notes at 'C/RR5'


MAGELLAN MORTGAGES 4: Moody's Lowers Rating on Cl. B Notes to Ba3


BILBOR MINERAL: Enters Into Bankruptcy After Seeking Insolvency


ER-TELECOM: S&P Assigns 'B+' CCR, Outlook Stable
RUSCOBANK JSC: Placed Under Provisional Administration


TELEKOM SLOVENIJE: Moody's Changes Outlook on Ba2 CFR to Stable


AYT DEUDA I: S&P Lowers Rating on Class A Notes to 'CC(sf)'
CAIXABANK CONSUMO 2: Moody's Rates Series B Notes (P)B3
CAIXABANK CONSUMO 2: Fitch Rates EUR130MM Cl. B Notes 'B+(EXP)'
FTPYME BANCAJA 6: Fitch Raises Rating on Class B Notes to 'BBsf'


SOLWAY INVESTMENT: Fitch Affirms 'B-/B' Issuer Default Ratings

U N I T E D   K I N G D O M

BANARAS HALAL: Business Goes Into Administration
BHS GROUP: MPs Quizzes Lady Green on Family's Retail Empire
DREAMLAND: Calls in Administrators
EIC LIMITED: Goes Into Administration; Cuts 398 Jobs
FHB MORTGAGE: Moody's Puts Caa1 Rating Under Review for Downgrade

HUDSON AND MIDDLETON: Goes Into Administration
MARSTON: Fitch Affirms Rating on Class B Notes at 'BB+'
MATALAN HOLDCO: S&P Affirms 'CCC+' CCR, Outlook Stable
MY LOCAL: Morrisons to Hire Staff if Firm Ends in Administration
OLIVER ADAMS: Saved From Going Into Administration or Liquidation

PEABODY ENERGY: First Foreign Insolvency Case in Gibraltar
TATA STEEL UK: Pension Payment Cuts Pose "Significant Risks"


* EC Plans to Set Common Approach to Bank Bondholder Bail-ins



ERSTE GROUP: Moody's Raises Subordinated Debt Ratings to Ba1
Moody's Investors Service upgraded Erste Group Bank AG's long-
term senior debt and deposit ratings to Baa1 from Baa2, and
assigned a stable outlook.  At the same time, the rating agency
upgraded Erste's baseline credit assessment (BCA) and adjusted
BCA to baa3 from ba1, and its long-term Counterparty Risk
Assessment (CR Assessment) to A3(cr) from Baa1(cr).  Further,
Moody's upgraded the bank's subordinated debt ratings to Ba1 from
Ba2, and certain junior subordinated debt ratings issued by the
bank or its issuing entities to Ba3(hyb) from B1(hyb), and to
Ba2(hyb) from Ba3(hyb). The bank's short-term ratings were
affirmed at P-2 as well as the bank's short-term Counterparty
Risk Assessment at P-2(cr).

The rating upgrade is supported by the continued strengthening of
Erste's financial fundamentals whilst the stable outlook reflects
Moody's expectation that Erste will be able to sustain its more
solid credit metrics.

Moreover, Moody's assigned an unsolicited provisional (P)Ba3
rating to Erste's low trigger undated deeply subordinated
Additional Tier 1 (AT1) note program.  The rating was not
initiated at the request of the rated entity.  Moody's issues
provisional ratings in advance of the final issuance.  These
ratings represent the rating agency's preliminary credit opinion.
A definitive rating may differ from a provisional rating if the
terms and conditions of the final issuance are materially
different from those of the draft prospectus reviewed.

Concurrently, the rating agency assigned an unsolicited Ba3(hyb)
rating to the EUR500 million low-trigger AT1 notes issued on 2
June 2016 under Erste's AT1 note program to which Moody's
assigned a (P)Ba3 rating, three notches below the bank's baa3
adjusted BCA. These ratings were not initiated at the request of
the rated entity.



The upgrade of the bank's BCA follows the sustained strengthening
of Erste's key credit metrics and reflects: (1) The bank's
successful and continued de-risking of its balance sheet through
continued problem loan sales, leading to meaningfully lower risk
costs that Moody's believes to be sustainable; (2) the continuous
build-up of the bank's capital adequacy ratios; and (3) Erste
having returned to its long-term earnings potential, absent
external one-off factors.

The bank succeeded in reducing its problem loan ratio to 6.7% as
of March 31, 2016, from 9.7% as of June 30, 2013, and improved
its coverage ratio to 66.5% from 61.7% as of the same dates.  As
of end-March 2016, problem loans were at EUR8.9 billion, down
from EUR12.6 billion at their peak in June 2013, helped by pro-
active portfolio sales, particularly in Romania and Hungary.
Moody's expects the problem loan ratio to drop further if the
bank is able to continue with its portfolio sales and maintains
tight control of any potential new problem loan formation.

The de-risking of the bank was further supported by a
strengthening of the bank's fully-loaded common equity Tier 1
(CET1) ratio to 12.3% (including retained earnings) as of 31
March 2016 (June 2015: 11.3%) as well as by a recovery of its
earnings generation power and thus capital generation capacity,
displaying a net profit of EUR968 million in 2015 and EUR275
million during the first quarter of 2016.  Moody's considers the
improved capitalization to be sufficient to cover the intrinsic
risks of the bank's operating model, which is geared towards
Central and Eastern Europe (CEE).

At the achieved capital and profitability levels, the rating
agency considers the bank to be well prepared to comply with
upcoming regulatory requirements, specifically with regard to the
expected implementation of a systemic risk buffer by the Austrian
regulator over the next 12 months.  Moody's also believes that
Erste will be able to continuously digest the ongoing burden from
external charges, such as various bank levies and contributions
to the deposit guarantee schemes.


The upgrade of Erste's long-term senior ratings by one notch to
Baa1 follows the one-notch upgrade of the bank's BCA.  The long-
term ratings therefore reflect: (1) The bank's baa3 BCA and
adjusted BCA; (2) the results of Moody's Advanced Loss Given
Failure (LGF) analysis, which continues to provide two notches of
uplift to the bank's long-term ratings from its adjusted BCA; and
(3) Moody's assumption of a low probability of government support
from the Austrian government (Aaa, negative) to be forthcoming to
Erste in case of need, despite its classification as a
systemically-relevant financial institution.  This assumption
leads to no additional rating uplift from government support and
continues to hold following the events surrounding the resolution
of Heta Asset Resolution AG (Carinthian state-guaranteed senior
unsecured debt Ca, rating under review for upgrade), which
illustrates the Austrian government's high willingness to apply
burden sharing to senior creditors.


The stable outlook on Erste's long-term senior deposit and debt
ratings reflects Moody's expectation that Erste will be able to
maintain its recently restored earnings generation capacity in
the medium term, in line with or slightly below its announced
target of a return on tangible equity of 10-11% in 2016.  This
should result in a further stabilization of the banks' financial
fundamentals over the next 12-18 months, despite continued
pressures from the persistent low interest-rate environment on
the bank's earnings as well as a potential weakening of the
operating environment in its core operating markets, including


The rating agency upgraded the supplementary capital and hybrid
debt instrument ratings issued by Erste or its dedicated issuing
entities by one notch.  The new rating levels continue to depend
on the terms and conditions of these securities and their
respective coupon skip mechanisms:

  (1) For Erste's cumulative junior subordinated debt maturing in
      2019 (ISIN: XS0303559115, Moody's Debt ID: 820418491),
      Moody's upgraded the rating by one notch to Ba2(hyb) from
      Ba3(hyb), two notches below the bank's baa3 adjusted BCA
      from which the rating is notched.  The ratings reflect the
      junior subordinated claim in liquidation and cumulative
      deferral features tied to the breach of a net loss trigger.

  (2) For two junior subordinated debt securities, Moody's has
      upgraded the rating by one notch to Ba2(hyb) from Ba3(hyb)
      (ISIN: AT000B000450, Moody's Debt ID: 809640880; ISIN:
      AT000B000518, Moody's Debt ID: 809783821), two notches
      below the adjusted BCA from which the rating is notched.
      The ratings reflect the rating agency's assessment of these
      instruments' cumulative coupon deferral mechanisms tied to
      the breach of a net loss trigger.

  (3) For one junior subordinated debt security (ISIN:
      XS0143383148, Moody's Debt ID: 10323181), Moody's upgraded
      the rating by one notch to Ba3(hyb) from B1(hyb), three
      notches below the bank's baa3 adjusted BCA from which the
      rating is notched.  The ratings reflect the rating agency's
      assessment of the instrument's junior subordinated claim in
      liquidation and non-cumulative deferral features tied to
      the breach of a net loss trigger.

  (4) The ratings of Erste's three non-cumulative preferred
      securities (ISIN XS0268694808, Moody's Debt ID: 809807559;
      and ISIN XS0215338152, Moody's Debt ID: 808192280; and ISIN
      XS0188305741, Moody's Debt ID: 807484307) have been
      upgraded to Ba3(hyb), from B1(hyb), three notches below the
      bank's baa3 adjusted BCA from which these rating are
      notched.  The ratings reflect the junior subordinated claim
      in liquidation and non-cumulative deferral features tied to
      the breach of a balance-sheet loss trigger.


Following the June 2016 issuance of EUR500 million of low trigger
undated deeply subordinated Additional Tier 1 (AT1) instruments
out of Erste's EUR2 billion AT1 note program, Moody's assigned an
unsolicited (P)Ba3 rating to the program and an unsolicited
Ba3(hyb) rating to the EUR500 million AT1 notes issued under this
program, three notches below the bank's baa3 adjusted BCA from
which the ratings are notched.  These ratings were not initiated
at the request of the rated entity.

The ratings reflect the rating agency's assessment of the
instrument's deeply subordinated claim in liquidation as well as
its non-cumulative coupon deferral features.  In addition, the
securities' principal is subject to a partial or full write-down
on a contractual basis if: (1) Erste's CET1 ratio falls below
5.125%; or (2) the issuer receives public support; and/or (3) the
Austrian Financial Market Authority (FMA) determines that the
conditions for a full write-down of the instrument are fulfilled
and orders such a write-down to prevent insolvency as a
protectionary measure.


Erste's ratings could be upgraded because of: (1) An upgrade of
its BCA; and/or (2) an increase in subordinated debt volumes.

Upward pressure on Erste's baa3 stand-alone BCA would be prompted
by (1) a further significant and sustained reduction in the
volume of NPLs; (2) a sustained and further improvement in
capitalization building a meaningful buffer over and above the
requirements set by the Austrian and/or European regulators; and
(3) a further improvement in the bank's operating performance and
capital-generation capacity from levels achieved in 2015.  In
addition, an upgrade would require the bank to maintain its
meanwhile solid risk management and corporate governance track

Upward rating pressure on the bank's debt and deposit ratings
would also develop if the bank increases the amount of
subordinated debt that could be bailed in ahead of senior
unsecured debt, providing one additional notch of rating uplift
from our LGF analysis.

Downward pressure could be exerted on Erste's long-term ratings
as a result of: (1) A lowering of its baa3 BCA; or (2) a
significant decrease in its bail-inable debt cushion, leading to
fewer notches of rating uplift as a result of our LGF analysis.

Downward pressure on Erste's baa3 BCA could be exerted following:
(1) A renewed and sustained formation of problem loans and
related loan loss charges, in particular if stemming from the
bank's operations in CEE; (2) a sustained weakening in the bank's
earnings- and thus capital-generation capacity; and (3) a
weakening of the bank's recently improved capitalization levels.


These ratings and rating assessments of Erste Group Bank AG were

   -- Long-term senior debt and deposit ratings to Baa1 stable,
      from Baa2 positive;

   -- Senior Unsecured MTN program to (P)Baa1, from (P)Baa2

   -- Subordinated and senior subordinated debt ratings to Ba1,
      from Ba2;

   -- Subordinated MTN program to (P)Ba1, from (P)Ba2;

   -- Baseline Credit Assessment (BCA) to baa3, from ba1;

   -- Adjusted Baseline Credit Assessment to baa3, from ba1;

   -- Long-term Counterparty Risk Assessment to A3(cr), from

   -- Cumulative junior subordinate debt ratings (ISIN:
      XS0303559115, ISIN: AT000B000450, ISIN: AT000B000518) to
      Ba2(hyb), from Ba3(hyb);

   -- Non-cumulative junior subordinate debt ratings (ISIN:
      XS0143383148) to Ba3(hyb), from B1(hyb).

These ratings and risk assessments of Erste Group Bank AG were
affirmed at their current levels:

   -- Short-term deposit ratings at P-2;
   -- Commercial Paper ratings at P-2;
   -- Other Short-term ratings at (P)P-2
   -- Short-term Counterparty Risk Assessment at P-2(cr).

These ratings were assigned to Erste Group Bank AG and were not
initiated at the request of the rated entity:

   -- Provisional non-cumulative preferred securities program
      rating (low-trigger AT1) at (P)Ba3;
   -- Non-cumulative preferred securities rating (EUR500 million
      low-trigger AT1 drawdown) at Ba3(hyb).

These ratings of Erste Bank, New York, were upgraded:

   -- Long-term deposit rating to Baa1 stable, from Baa2
   -- Long-term Counterparty Risk Assessment to A3(cr), from

These ratings of Erste Bank, New York, were affirmed:

   -- Short-term Counterparty Risk Assessment at P-2(cr).

These ratings of Erste Finance (Delaware) LLC were affirmed:

   -- Backed Commercial Paper at P-2.

These ratings of Erste Capital Finance (Jersey) Tier I PC were

   -- Non-cumulative preferred securities (ISIN XS0268694808,
      Moody's Debt ID: 809807559) to Ba3(hyb), from B1(hyb).

These ratings of Erste Finance (Jersey) (4) Limited were

   -- Backed non-cumulative preferred securities (ISIN
      XS0188305741, Moody's Debt ID: 807484307) to Ba3(hyb), from

These ratings of Erste Finance (Jersey) (6) Limited were

   -- Backed non-cumulative preferred securities (ISIN
      XS0215338152, Moody's Debt ID: 808192280) to Ba3(hyb), from


UNIVEG HOLDING: Moody's Affirms B2 CFR, Outlook Altered to Stable
Moody's Investors Service changed to stable from negative the
outlook on all the ratings of Fieldlink NV and UNIVEG Holding

"We changed the outlook to stable from negative reflecting
Univeg's ability to recover its revenues and maintain stable
margins after the loss of a major contract last year.  In
addition we expect the company to achieve some synergies
following the business combination with Greenyard Foods," said
Emmanuel Savoye, Moody's lead analyst for the issuer.

At the same time, Moody's has affirmed the B2 corporate family
rating and B2-PD probability of default rating (PDR) of leading
Belgium-based fruit and vegetable wholesaler FieldLink NV, as
well as the B3 rating of the backed EUR285 million senior secured
notes due 2020 issued by UNIVEG Holding B.V.

                         RATINGS RATIONALE

The change in outlook to stable from negative reflects (1)
successful efforts by the company to recover revenues in the last
12 months, following the loss of a contract with a major German
customer in Q1 2015; (2) the company's stable margins, supported
by the disposal of loss making activities, including farming
operations and part of the flower business; and (3) the progress
Univeg has made toward its business merger with the Greenyard
Foods group, which offers the potential for synergies.

Despite the loss of a major contract with a customer in Germany
in Q1 2015, which negatively affected revenue and EBITDA, the
company was able to successfully grow in other areas and to
deliver a positive financial performance.  This included good
growth in the Netherlands and in the Czech Republic, as well as
new contracts gained in Germany.

Reported revenues remained stable at EUR3.3 billion in Q1 2016
compared to Q1 2015, including the contract loss of approximately
EUR300 million and the disposal of farms and part of the flower
business for approximately EUR70 million revenues.  In Moody's
view, this demonstrates the resilience of Univeg's business,
although significant customer concentration remains with the top
two customers, representing more than 50% of revenues.

Univeg's divestment of loss-making farming operations in Turkey,
South Africa and South America in December 2014 supported the
profitability of the core fruit and vegetables business and
reduced the exposure to more volatile farming operations.  The
disposal proceeds also enabled the company to repay its revolving
credit facility.  As a result, Univeg's reported EBITDA margins
remained stable at 2.3% in Q1 2016 versus Q1 2015 in a continued
competitive environment.

The business combination between Univeg, Greenyard Foods and
Peatinvest closed in Q2 2015 and formed a leading European player
in the fruit and vegetables market with annual revenues of
EUR3.9 billion.  Univeg is a core subsidiary of Greenyard,
representing 55% of the group's recurring EBITDA.  It will focus
on the sourcing and distribution of fruit and vegetables while
the other activities of Greenyard include the production of
frozen and canned food as well as growing media for gardening and
soil improvers.

Moody's expects that Univeg will benefit from improved corporate
governance and internal controls as a result of being part of a
public company listed on Euronext.  However, the absence of any
guarantees or other credit support between Univeg and Greenyard
Foods means that Univeg's B2 CFR mostly reflects its own credit
fundamentals.  Moody's believes that the business combination can
bring some synergies, including cost savings on direct spend and
cross-selling opportunities, although these are only expected to
be realized from 2017 onwards.

Moody's adjusted leverage of 7.3x is high for the rating
category. This is, in part, due to the significant amount of
EUR292 million drawings under a factoring facility as of end of
March 2016. Despite an increase in factoring facility
utilization, the adjusted leverage improved to 7.3x in March 2016
from 8.1x at year-end 2014, due to the repayment of drawings
under the RCF and a slight increase in Moody's adjusted EBITDA.

Moody's also notes that the rating reflects Univeg's adequate
liquidity supported by EUR127 million cash on balance sheet at
the end of March 2016, a fully undrawn EUR90 million revolving
credit facility, a EUR350 million off-balance-sheet factoring
facility due in December 2018 and ample headroom under the
covenants.  There is also no scheduled debt amortization until
the bond maturity in 2020.

The stable outlook reflects Moody's expectations that Univeg will
be able to sustain the recent improvement in operating
performance and maintain an adequate liquidity profile.  Moody's
will continue to monitor the impact of the business combination
of Univeg with Greenyard Foods and Peatinvest.


As a result of the high leverage, an upgrade in the short term is
unlikely.  Positive pressure could arise if the company is able
to reduce its Moody's-adjusted debt/EBITDA towards 6.0x.  Upward
rating momentum would also require it to generate positive free
cash flow for a sustained period.  Greater diversification of the
customer base would also benefit the rating.

Negative pressure could arise if its Moody's-adjusted debt/EBITDA
exceeds 7.5x, if liquidity substantially weakens or if the
company were to lose any of its major customers with negative
impact on profitability.


The principal methodology used in these ratings was Distribution
& Supply Chain Services Industry published in December 2015.

Founded in 1987 and headquartered in Belgium, Univeg is a leading
supplier of fresh fruit and vegetables for large retailers in
Germany, Belgium and Netherlands.  Together, these three
countries account for c. 75% of 2015 total sales.  The company is
also a specialist player in France (tropical fruit), the United
Kingdom (top fruit, tropical and stone fruit) and the United
States (citrus fruit and grapes).  Univeg generated EUR3.3
billion sales in 2015.  From Q2 2015, Univeg became part of the
Greenyard Foods group, a leading processor of deep-frozen and
canned fruit and vegetables.  The combined entity generates sales
of EUR4.0 billion.


SAPPI LIMITED: Moody's Affirms Ba3 CFR & Changes Outlook to Pos.
Moody's Investors Service has changed to positive from stable the
outlook on all ratings of Sappi Limited and its subsidiary Sappi
Papier Holding GmbH (SPH).  Concurrently, Sappi's Ba3 corporate
family rating (CFR), Ba3-PD probability of default rating (PDR)
as well as the ratings of the various financial instruments at
SPH including the Ba2 senior secured notes and credit facilities,
as well as the B2 senior unsecured notes have been affirmed.

"The outlook change to positive reflects the track record in
financial performance and improved resilience of Sappi's business
model over the past years despite challenging economic conditions
as well as our expectation of sustainability in recent
performance improvements, that should enable the group to achieve
and maintain credit metrics in line with a Ba2 rating over the
next 12-18 months" says Matthias Volkmer, a Moody's Vice
President -- Senior Credit Officer and lead analyst for Sappi.
"We note that Sappi's focus on deleveraging has reduced the debt
burden by about 32% since 2009 while the company implemented
sizable restructuring measures in its paper and pulp operations.
Moody's expect that Sappi's transformation towards a more
diversified business composition including the continued
expansion of its Dissolving Wood Pulp (DWP) and Specialty Paper
Operations as well as new business areas (nano cellulose) will
incorporate sizeable investments but understand that management
is committed to achieving its leverage target in the medium term
and maintain it thereafter", Mr. Volkmer added.

                          RATINGS RATIONALE

The Ba3 CFR reflects Sappi's (i) moderately balanced business
profile and absolute scale with USD5.25 billion in the last
twelve months ending March 2016, underpinned by leading market
positions in the production of coated fine paper for high-quality
publications and dissolving wood pulp predominantly for
application in the textile industry as well as solid geographic
diversification.  Sappi's good vertical integration into forest,
pulp and energy is a further supportive factor of its business
profile, and has partially sheltered the company from market
price fluctuations of these main input cost factors relative to
its peers.

In terms of capital structure, we note that Sappi has been
strongly positioned at the Ba3 rating level for the last few
quarters with adjusted debt/EBITDA of about 4x and RCF/debt of
18.3% as of March 2016.  In addition, the rating benefits from
Sappi's very good liquidity profile, with USD457 million cash
resources as per March 2016 and access to approximately
USD584 million undrawn revolving credit facilities in South
Africa and Europe, as well as a balanced debt maturity profile.

Moody's notes that Sappi's deleveraging including almost
USD1.3 billion debt repayments since 2009 has helped rebalance
the interests of creditors and shareholders while another
positive rating factor has been the gradual reduction of Sappi's
dependence on the mature European and North American coated paper
markets, where Sappi generated around 55% of its EBITDA during
2015 (as reported).  The graphic paper market continues to be in
structural decline with shrinking volumes due to digital
substitution. Pressure on pricing levels as a result of a highly
competitive market environment with significant periodic
overcapacities in most paper grades and continued high input
costs are weighing on its margins.  In response, Sappi's 2020
vision is to reduce the dependence on its paper operations
through ongoing cost initiatives including global procurement
savings and efficiency investments, rationalization of the
gradually declining graphic paper business including selective
transitioning to specialty paper grades, moderate growth
investments and acceleration of growth in specialty packaging
paper, biomaterials, biochemical and expansion of its DWP
portfolio.  However, these shifts in Sappi's business profile
will only gradually evolve in the short to medium term, leaving
Sappi somewhat vulnerable to the weak state of developed paper
markets for the time being.  In addition, the industry's inherent
cyclicality has historically resulted in considerable volatility
of Sappi's credit metrics, yet more stability in recent years.


The positive rating outlook is based on our expectation of Sappi
maintaining or even further improving its profitability through
2016 while retaining credit metrics in line with Moody's
expectations for a Ba2 rating, as indicated by EBITDA margins in
the mid-teens and RCF/Debt coverage above 15%.


Moody's considers Sappi's liquidity profile as very good, with
current sources sufficient to cover the next quarters' cash uses.
The main cash sources are cash and cash equivalents of
USD457 million as per March 2016 and internal cash flow
generation of more than USD500 million over the next 12 months.
In addition, Sappi has access to approximately USD584 million
unused revolving credit facilities in South Africa and Europe,
including the increased EUR465 million revolver in Europe
maturing in 2020. While part of the group's non-South African
bank debt, the securitization borrowings and the RCF all contain
financial covenants, headroom should remain sufficient.

Cash uses pertain to capex spending of around USD300 million for
the next four quarters, as well as some seasonal working capital
swings.  Following the extension of the EUR330 million
securitization facility until August 2018 and the refinancing of
the group's 2018 and 2019 notes, Sappi's USD400 million bond
maturing in 2017 constitutes it's largest debt maturities in the
near to medium term, however Sappi has indicated that the planned
repayment of the notes as of April 2017 will be funded from the
group's liquidity sources.


Further upward rating pressure could occur if Sappi continues to
successfully manage the structural demand decline and pricing
pressures in coated fine paper while gradually improving the
diversification of its business profile towards growing and more
profitable paper grades.  More quantitatively, the company would
need to maintain or improves its credit metrics again, as
reflected in RCF/debt above 15% (18.3% as per LTM March 2016) and
EBITDA margins above 12% (12.7%).  In addition, we would expect
to see a more permanent improvement in Sappi's Moody's adjusted
leverage towards 3.5 times in terms of debt/EBITDA (4.0x) before
considering a rating upgrade.

The ratings could experience downward pressure over the coming
quarters in case of material weakening of profitability, or the
inability to sustain current credit metrics, reflected in EBITDA
margins (12.7% as per LTM March 2016) and RCF/ Debt (18.3%)
declining towards single digit percentages, or debt/EBITDA
towards 4.5x (4.0x).  In addition, the rating could come under
pressure in case Sappi makes sizable debt-funded acquisition or
pays out material amounts of cash to shareholders resulting in a
more permanent deterioration of its credit metrics.

                       STRUCTURAL CONSIDERATION

The Ba2 (LGD 3) rating assigned to the group's senior secured
notes is one notch above the company's Ba3 corporate family
rating (CFR) and reflects the relative seniority and security
package of the instruments in Sappi's capital structure.  The
group's secured notes benefit from the same guarantee and
security package as Sappi's EUR465 million revolving credit
facility maturing in 2020, as well as certain other indebtedness.
These aforementioned instruments benefit from upstream guarantees
on a senior basis of essentially all material operating
subsidiaries of Sappi's international business, excluding South
African operations.  In addition, these instruments are partially
secured as they benefit from a first-lien security interest in
certain of Sappi's subsidiaries' property, plant and equipment,
real estate and inventories, as well as share pledges on the
stock of certain of Sappi's operating subsidiaries.  Furthermore,
the notes benefit from a senior downstream guarantee provided by
the ultimate holding company Sappi Limited.

The rating of the existing USD221 million global bond due 2032
issued by the holding company Sappi Papier Holding GmbH is at B2
(LGD 6).  The instrument is rated two notches below the CFR,
reflecting the effective subordination relative to the
considerable amount of senior secured debt ranking ahead in the
capital structure, with a closer proximity to operating cash
flows and assets.  The notes only benefit from a downstream
guarantee by the ultimate holding company Sappi Limited on an
unsecured basis, which ranks junior relative to the senior
secured debt, and an upstream guarantee from the group's treasury
company Sappi International, to be shared with the senior secured

List of Affected Ratings


Issuer: Sappi Limited
  Probability of Default Rating, Affirmed Ba3-PD
  Corporate Family Rating, Affirmed Ba3

Issuer: Sappi Papier Holding GmbH

  Senior Secured Bank Credit Facility March 2020, Affirmed Ba2
   (LGD 3)
  Backed Senior Secured Regular Bond/Debenture July 2017,
    Affirmed Ba2 (LGD 3)
  Backed Senior Secured Regular Bond/Debenture April 2022,
   Affirmed Ba2 (LGD 3)
  Backed Senior Secured Regular Bond/Debenture, April 2023,
   Affirmed Ba2 (LGD 3)
  Backed Senior Unsecured Regular Bond/Debenture, June 2032,
   Affirmed B2 (LGD 6)

Outlook Actions:

Issuer: Sappi Limited
  Outlook, Changed To Positive From Stable

Issuer: Sappi Papier Holding GmbH
  Outlook, Changed To Positive From Stable

The principal methodology used in these ratings was Global Paper
and Forest Products Industry published in October 2013.

Sappi Limited, with its head offices in Johannesburg, South
Africa and reported group sales of USD5.3 billion in the last
twelve months ending March 2016, is a leading global producer of
coated fine paper and dissolving wood pulp.  The company reports
by regional segments: North America (26% of group sales in Fiscal
Year (FY) ending September 2015), Europe (49%) and South Africa

Sappi's Fine Paper Operations, generated a significant proportion
of revenues, with over 70% of group sales, including the European
and North American coated fine paper and coated magazine
manufacturing activities.  In addition, the company produces
packaging paper, printing and writing paper and tissue for the
South African market.

Sappi's Southern Africa division produces bleached and unbleached
paper pulp for internal and third-party consumption.  Sappi is
also the world's largest producer of dissolving wood pulp.  The
company owns and manages various plantations totaling 492,000
hectares in Southern Africa that supply over 75% of Sappi South
Africa's wood requirements.


NATIONAL BANK OF GREECE: Fitch Affirms Long-Term IDRs at 'RD'
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings
(IDRs) of National Bank of Greece S.A. (NBG), Alpha Bank AE
(Alpha), Piraeus Bank S.A. (Piraeus) and Eurobank Ergasias S.A.
(Eurobank) at 'Restricted Default' (RD). At the same time the
agency has affirmed the four Greek banks' Viability Ratings (VRs)
at 'f'.

This rating action follows the review of Greek banks' ratings.
Their IDRs were downgraded to 'RD' on the June 29, 2015 following
the imposition of restrictions on the withdrawal of deposits
following large outflows from the banks in 1H15.


The banks' IDRs of 'RD' reflect Fitch's view that the Greek banks
are defaulting on a material part of their senior obligations
given that capital controls, through restrictions on deposit
withdrawals, are still in place in Greece.

The banks' long-term senior unsecured debt ratings, including
those on the debt programs of their issuing vehicles, have been
affirmed at 'C'/'RR6' (Recovery Rating). The ratings reflect
exceptionally high levels of credit risk, because of poor
recovery prospects in the event of the default on senior debt
obligations, due to the banks' weak asset quality and high levels
of preferred liabilities (comprising mainly insured deposits) and
asset encumbrance.


The affirmation of the four Greek banks' VRs at 'f' reflects
Fitch's opinion that these banks would default if the deposit
restrictions are lifted. The economic and political environment
in Greece remains fragile. The Greek banking system has not yet
regained confidence from customers and investors to restore the
banks' funding and liquidity profiles, and ultimately the
viability of their business models.

However, Fitch acknowledges material progress in the banks'
credit fundamentals since June 2015. The four banks were
recapitalized in 4Q15 following the Comprehensive Assessment that
was carried out in October 2015. This allowed them to improve
their problem loan reserve coverages and strengthen their
capitalization. At the same time, their liquidity positions have
improved somewhat due to the capital controls, improved
perception of the risk of Greece exiting the eurozone, and the
liquid assets received upon the recapitalization.

Nevertheless Greek banks' credit profiles remain weak, with large
funding imbalances and heavy reliance on Eurosystem funding. Loan
quality is weak as the banks hold large stocks of non-performing
exposures (NPEs). Despite the banks' recapitalization and
provisioning efforts, their unreserved NPEs exceeded their
regulatory common equity Tier 1 at end-2015.


Fitch said, "Greek banks' Support Ratings of '5' and Support
Rating Floors of 'No Floor' highlight our view that support from
the state cannot be relied upon, given Greece's limited resources
and the implementation of the Bank Recovery and Resolution
Directive (BRRD)."


The ratings on Eurobank's and Alpha Bank's subordinated debt and
other hybrid capital (including debt issued through their funding
vehicles) reflect exceptionally high credit risk, including poor
recovery prospects. The banks' hybrid capital is currently non-


Fitch said, "Eurobank's government-guaranteed debt are senior
unsecured instruments that benefit from a full guarantee from the
Greek State. Fitch rates guaranteed debt at the higher of the
senior unsecured debt ratings of the issuer (C for Eurobank) and
the guarantor's Long-Term Foreign Currency IDR (CCC for Greece).
We believe that these guaranteed programs and issues will be
treated equally with other obligations of the Greek State."



Fitch said, "The four Greek banks' IDRs, VRs and senior debt
ratings are unlikely to be upgraded until capital controls are
materially eased. We believe that further improvements in
investor and customer confidence are needed before restriction on
deposit withdrawals can be lifted and thus the Greek banks can
restore their viability."

Recovery ratings are sensitive to the banks' asset encumbrance
and Fitch's expectation on the valuation of free assets.

The banks' Support Ratings and Support Rating Floors are unlikely
to change, given Greece's limited capacity to support its banks
and the implementation of BRRD.

Eurobank's and Alpha Bank's subordinated debt ratings are
unlikely to be upgraded until capital controls are materially
eased. A rating upgrade is contingent on the banks' hybrid
instruments returning to performing status.

Eurobank's government-guaranteed debt ratings are sensitive to a
change in Greece's sovereign ratings.

The rating actions are as follows:

Long-Term IDR: affirmed at 'RD'
Short-Term IDR: affirmed at 'RD'
VR: affirmed at 'f'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
Senior notes: affirmed at 'C'/'RR6'
Short-term senior notes: affirmed at 'C'

NBG Finance plc:
Long-term senior unsecured debt rating: affirmed at 'C'/'RR6'
Short-term senior unsecured debt rating: affirmed at 'C'

Piraeus Bank:
Long-Term IDR: affirmed at 'RD'
Short-Term IDR: affirmed at 'RD'
VR: affirmed at 'f'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
Long-term senior unsecured debt rating: affirmed at 'C'/'RR6'
Short-term senior unsecured debt rating: affirmed at 'C'

Piraeus Group Finance PLC:
Long-term senior unsecured debt rating: affirmed at 'C'/'RR6'
Short-term senior unsecured debt rating: affirmed at 'C'
Commercial paper: affirmed at 'C'

Alpha Bank:
Long-Term IDR: affirmed at 'RD'
Short-Term IDR: affirmed at 'RD'
VR: affirmed at 'f'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
Long-term senior unsecured debt rating: affirmed at 'C'/'RR6'
Short-term senior unsecured debt rating: affirmed at 'C'
Commercial paper: affirmed at 'C'
Hybrid capital: affirmed at 'C'/'RR6'

Alpha Credit Group PLC:
Long-term senior unsecured debt rating: affirmed at 'C'/'RR6'
Short-term senior unsecured debt rating: affirmed at 'C'
Subordinated notes: affirmed at 'C'/'RR6'

Long-Term IDR: affirmed at 'RD'
Short-Term IDR: affirmed at 'RD'
VR: affirmed at 'f'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
Senior notes: affirmed at 'C'/'RR6'
Short-term senior notes: affirmed at 'C'
Market-linked senior notes: affirmed at 'Cemr'/'RR6'
Commercial paper: affirmed at 'C'
Subordinated notes: affirmed at 'C'/'RR6'
Hybrid capital: affirmed at 'C'/'RR6'
Long-term state-guaranteed debt program: affirmed at 'CCC'
Short-term state-guaranteed debt program: affirmed at 'C'

ERB Hellas PLC:
Long-term state-guaranteed debt program: affirmed at 'CCC'
Short-term state-guaranteed debt program: affirmed at 'C'
Long-term senior unsecured debt rating: affirmed at 'C'/'RR6'
Short-term senior unsecured debt rating: affirmed at 'C'

ERB Hellas (Cayman Islands) Ltd.:
Long-term state-guaranteed debt program: affirmed at 'CCC'
Short-term state-guaranteed debt program: affirmed at 'C'
Long-term senior unsecured debt rating: affirmed at 'C'/'RR6'
Short-term senior unsecured debt rating: affirmed at 'C'


DRUIDS GLEN: Exits Examinership Following Gulland Agreement
Aodhan O' Faolain at reports that an agreement has
been reached allowing Druids Glen Golf Club Ltd. exit

Druids Glen, which owns and operates the Druid's Glen Golf
Course, sought the protection of the High Court after a Financial
company, which acquired a loan a related company, Lakeford Ltd,
had acquired from Anglo Irish Bank some years ago, appointed a
receiver over the 18-hole championship course,

According to, the fund, Gulland Property Finance
Ltd, claimed it was owed some EUR4.85 million by Lakeford and
appointed a receiver over the course at Newtownmountkennedy Co
Wicklow after its demand to be paid was not satisfied.

Following the receiver's appointment, DGGC went to the High
Court, and had insolvency practioner John McStay of McStay Luby
Accountants was appointed interim examiner to both the Druids
Glen and Lakeford, relays.  Gulland had indicated
its opposition to the examinership application,

The matter returned before the High Court on June 21 when
Ms. Justice Caroline Costello was told by Patrick Leonard SC for
Druids Glen that an agreement had been reached with Gulland, recounts.

Counsel said Druids Glen and Lakeland had secured funding by way
of investment from Candarlii Ltd., a related company within the
Druids Glen group, and EUR1.8 million loan from AIB, which had
supported the application for examinership,

As a result monies had been paid to Gulland, satisfying their
debt, discloses.  Counsel added that Druids Glen
had funds to pay off all of its preferential and trade creditors,
according to

Counsel, as cited by, said the company was no
longer insolvent, and was seeking to withdraw its application for

HACKETTS BOOKMAKERS: Potential Buyers Approach Liquidators
Barry O'Halloran at The Irish Times reports that potential buyers
for some of Hacketts Bookmakers' betting shops have approached
the liquidators that took over the business.

The High Court appointed Declan McDonald and Ken Tyrrell of PWC
as provisional liquidators to Hacketts at the request of its
directors, The Irish Times relates.

According to The Irish Times, the liquidation resulted in the
loss of 35 jobs and the closure of the chain's 18 betting shops
in Dublin, Cork, Limerick and across the midlands, which are
likely to be sold.

It is understood that a number of potential buyers have already
expressed interest in some of the properties, although it is not
known if they are rival bookies or other businesses, The Irish
Times notes.

Hacketts' biggest creditors are its own directors, including
managing director, John Hackett, who loaned money to the chain in
recent years in an effort to support it, The Irish Times

Hacketts struggled with increased competition from mobile and
online and the 1% turnover tax on all wagers placed in its shops,
The Irish Times relays.

Hacketts Bookmakers is a betting-shop business.


ALBA 8 SPV: Moody's Assigns Ba3 Rating to Class C Notes
Moody's Investors Service has assigned these definitive ratings
to ABS notes issued by Alba 8 SPV S.r.l.:

  EUR335,300,000 Class A1 Asset-Backed Floating Rate Notes due
   Oct. 2039, Definitive Rating Assigned Aa2 (sf)
  EUR304,800,000 Class A2 Asset-Backed Floating Rate Notes due
   Oct. 2039, Definitive Rating Assigned Aa2 (sf)
  EUR127,000,000 Class B Asset-Backed Floating Rate Notes due
   Oct. 2039, Definitive Rating Assigned A1 (sf)
  EUR45,700,000 Class C Asset-Backed Floating Rate Notes due
   Oct. 2039, Definitive Rating Assigned Ba3 (sf)

Moody's has not assigned rating to the EUR213,300,000 Class J
Asset-Backed Floating Rate Notes due October 2039 which were

Alba 8 SPV S.r.l. is a cash securitization of lease receivables
originated by Alba Leasing S.p.A. and granted to individual
entrepreneurs and small and medium-sized enterprises (SME)
domiciled in Italy mainly in the regions of Lombardia and Emilia
Romagna.  Assets are represented by receivables belonging to
different sub-pools: real estate (27.61%), equipment (53.16%) and
auto transport assets (17.75%).  A small portion (1.48%) of the
pools is represented by lease receivables whose underlying asset
is an aircraft, a ship or a train.  The securitized portfolio
does not include the so-called "residual value instalment", i.e.
the final installment amount to be paid by the lessee (if option
is chosen) to acquire full ownership of the leased asset.  The
residual value installments are not financed -- i.e. it is not
accounted for in the portfolio purchase price -- and is returned
back to the originator when and if paid by the borrowers.


According to Moody's, the rating takes into account, among other
factors, (i) the loan-by-loan evaluation of the underlying
portfolio, also complemented by the historical performance
information as provided by the originator and available for
previous transactions; (ii) the structural features of the
transaction, with the inclusion of, inter alia, (a) an amortizing
debt service reserve equal to 1.25% of rated notes , funded at
closing, designed to provide liquidity coverage over the life of
the transaction and to cover portfolio losses at the maturity of
the transaction and (b) a Class B and Class C interest
subordination event that is triggered upon cumulative defaults
exceeding respectively 15% and 10% of the initial portfolio
balance; and (iii) the sound legal structure of the transaction.

Moody's notes as credit strengths of the transaction its static
nature as well as the structure's efficiency, which provides for
the application of all cash collections to repay the Class A1 and
A2 notes should the portfolio performance deteriorate beyond
certain limits (i.e. class B interest subordination event).
Other credit strengths include (i) the granular portfolio
composition as reflected by low single lessee concentration (with
the top lessee and top 5 lessees group exposure being 0.78% and
3.41% respectively), (ii) limited industry sector concentration
(i.e. lessees from top 2 sectors represent not more than 28.1% of
the pool with 16.2% in the building and real estate industry
according to Moody's classification) and (iii) no potential
losses resulting from set-off risk as obligors do not have
deposits or did not enter into a derivative contract with Alba
Leasing S.p.A.

Moody's notes that the transaction also features a number of
credit weaknesses, such as: (i) the impact on recoveries upon
originator's default; and (ii) the potential losses resulting
from commingling risk that are not structurally mitigated but are
reflected in the credit enhancement levels of the transaction.
Moody's valued positively the appointment of Securitisation
Services S.p.A. as back up servicer on the closing date.
Finally, Moody's considered a limited exposure to fixed-floating
interest rate risk (1.72% of the pool reference a fixed interest
rate) as well as basis risk given the discrepancy between the
interest rates paid on the leasing contracts compared to the rate
payable on the notes and no hedging arrangement being in place
for the structure.

Portfolio characteristics and key collateral assumptions:
As of the valuation date (May 5, 2016), the portfolio principal
balance amounted to EUR1,015,940,300.  The portfolio is composed
of 15,046 leasing contracts granted to 10,014 lessees, mainly
small and medium-sized companies.  The leasing contracts were
originated between 2010 and 2016, with a weighted average
seasoning of 1.98 years and a weighted average remaining life of
approximately 6.3 years.  The interest rate is floating for
98.28% of the pool while the remaining part of the pool bears a
fixed interest rate.  The weighted average spread on the floating
portion is 3.22%, while the weighted average interest on the
fixed portion is 4.0%.

In its quantitative assessment, Moody's assumed an inverse normal
default distribution for this securitized portfolio due to its
level of granularity.  The rating agency derived the default
distribution, namely the relevant main inputs such as the mean
default probability and its related standard deviation, via the
analysis of: (i) the characteristics of the loan-by-loan
portfolio information, complemented by the available historical
vintage data; (ii) the potential fluctuations in the
macroeconomic environment during the lifetime of this
transaction; and (iii) the portfolio concentrations in terms of
industry sectors and single obligors.  Moody's assumed the
cumulative default probability of the portfolio to be equal to
11.1% (equivalent to B1) with a coefficient of variation (i.e.
the ratio of standard deviation over mean default rate) of 40.8%.
The rating agency has assumed stochastic recoveries with a mean
recovery rate of 35%, a standard deviation of 20%, and a 30%
stress on recovery rate mean upon insolvency of the originator.
In addition, Moody's has assumed the prepayments to be 5% per
year.  The base case mean loss rate and the CoV assumption
correspond to a portfolio credit enhancement of 20.6%.

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

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

Factors that would lead to an upgrade or downgrade of the
Factors or circumstances that could lead to a downgrade of the
rating affected by today's action would be (1) the worse-than-
expected performance of the underlying collateral; (2)
deterioration in the credit quality of the counterparties,
especially Alba Leasing S.p.A. acting as servicer; and (3) an
increase in Italy's sovereign risk.

Factors or circumstances that could lead to an upgrade of the
ratings affected by today's action would be (1) the better-than-
expected performance of the underlying collateral and (2) a
decline in Italy's sovereign risk.

Stress Scenarios:

Moody's also tested other set of assumptions under its Parameter
Sensitivities analysis.  At the time the rating was assigned, the
model output indicated that the Class A1 and A2 would have
achieved Aa2 even if the mean default rate was as high as 13.1%
with a recovery rate assumption of 30% (all other factors
unchanged).  Additionally Moody's observes that under the same
stressed assumptions Class B and Class C would have achieved
respectively an A3 and a B1 rating.

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

Moody's will monitor this transaction on an ongoing basis.

Principal Methodology:

The principal methodology used in these ratings was "Moody's
Approach to Rating ABS Backed by Equipment Leases and Loans"
published in December 2015.


COSAN LUXEMBOURG: Fitch Affirms 'BB+' Rating on Sr. Unsec. Notes
Fitch Ratings has affirmed Cosan S.A. Industria e Comercio's
(Cosan) Long-Term (LT) Foreign Currency (FC) and Local Currency
(LC) Issuer Default Ratings (IDRs) at 'BB+', and its National
Scale rating at 'AA+(bra)'. The Rating Outlook for the FC IDR is
Negative, and Stable for the LC IDR and National Scale rating.
The ratings on all related debts were affirmed at 'BB+', as they
are unconditionally and irrevocably guaranteed by Cosan.


Cosan's ratings are supported by its strong and diversified asset
portfolio. Fitch expects this portfolio to provide a robust flow
of dividends to Cosan in order to cover its interest expenses
above 2x and pay a sufficient dividend to support its main
shareholder's (Cosan Ltd.) debt service. The company's portfolio
benefits from the resilience of activities such as distribution
of natural gas, and the sale of lubricants and fuels. The share
of the sugar and ethanol (S&E) business over Cosan's pro forma
consolidated EBITDA remained flat at 33% in 2015, as this
business presented a stable performance despite its inherent

The ratings incorporate Cosan's still-high leverage as of March
31, 2016, although some reduction has been noted, and the company
benefits from a comfortable debt maturity profile. Fitch's
analysis has also considered the subordination of this company's
debt to the obligations of its main investments, as access to
their cash is limited to dividends received.

Robust Asset Portfolio

Cosan's three main assets and source of dividends are companies
with robust credit quality. Raizen Combustiveis S.A. (Raizen
Combustiveis; FC and LC IDRs 'BBB', National Scale rating
'AAA(bra)') is the third largest fuel distributor in Brazil, with
predictable operational cash generation. Despite its more
volatile results, Raizen Energia S.A. (Raizen Energia; rated the
same as Raizen Combustiveis) is the largest S&E company in Brazil
and as such it benefits from its large business scale, which
somewhat mitigates the current challenging scenario for the
sector. Companhia de Gas de Sao Paulo (Comgas; FC IDR 'BB+', LC
IDR 'BBB-', National Scale rating 'AAA(bra)') is the largest
natural gas distributor in Brazil, with high growth potential and
predictable operational cash flow. Fitch's Rating Outlook on all
of their FC IDRs is Negative to reflect the Negative Outlook on
Brazil's sovereign rating.

All of Cosan's businesses reported improved performance in 2015
compared to the previous year. In 2015, Comgas reported net
revenues at BRL6.6 billion and stable EBITDA margin at 23%, while
Raizen Combustiveis reported net revenues of BRL63 billion in the
fiscal year ended March 31, 2016, comparing favorably to BRL56
billion in fiscal 2015. Raizen Energia reported a 22% increase in
revenues to BRL11.8 billion in fiscal 2016 and flat EBITDAR
margin at 29% compared to fiscal 2015. The other two assets that
Cosan invests are Cosan Lubrificantes S.A. and Radar Propriedades
Agricolas S.A., which add to business diversification.

High Interest Coverage Expected to Remain

Fitch expects Cosan's investees to pay robust dividend payments
over the next few years, with Cosan receiving around BRL1 billion
in 2016, up from BRL684 million in 2015. Raizen Combustiveis
should maintain its growing trend in revenues, with a stable
EBITDA margin, while Raizen Energia's operational cash flow
generation should benefit from expected higher S&E prices and
sales volumes. Comgas distributed BRL1.2 billion of dividends in
1Q16, which is expected to reach BRL1.4 billion at year-end.
Nevertheless, Fitch estimates Comgas' annual dividends
distribution will range between BRL300 million-BRL500 million
from 2017 to 2019.

Cosan's interest coverage should be above 2x on a sustainable
basis, which is adequate for the rating category and allows the
company to gradually reduce its debt. In 2015, the ratio of
dividends received/interest expense was near 2x. Cosan's access
to its main investees is limited to dividends, as Raizen
Combustiveis and Raizen Energia are jointly controlled by Cosan
and Shell. Comgas is a regulated concession and any intercompany
loan to shareholders must be approved by regulators.

High Leverage for Cosan

Fitch said, "Cosan's leverage should remain high on a stand-alone
basis, in our view, despite the lower ratio presented at the end
of 1Q16. This decline was due to appreciation in the BRL and,
more important, a robust dividend inflow of BRL730 million in the
three-month period ended March 31, 2016. The company reported net
adjusted debt of BRL5.9 billion and total dividend inflow of
BRL1.4 billion in the last 12 months ended March 31, 2016,
bringing down the ratio of net adjusted debt-to-EBITDA plus
dividends received to 4.9x. This compares favorably with the net
adjusted debt of BRL7.6 billion and net adjusted leverage of
12.1x reported in December 2015."

Debt consisted mostly of intercompany loans of BRL4.4 billion,
which represent past bond issuances by its fully owned
subsidiaries, and non-voting preferred shares of BRL2 billion.
Although issued by Cosan Luxembourg S.A. (Cosan Luxembourg) and
Cosan Overseas Ltd. (Cosan Overseas), the associated debt at both
entities is guaranteed by Cosan, which is ultimately responsible
for the payment.


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

-- An increased flow of dividends coming from Comgas, Raizen
    Combustiveis and Raizen Energia over the next two years,
    reaching over BRL1 billion per year.
-- Potential new issuances will only be used to refinance
    existing debt.


Future developments that may, individually or collectively, lead
to a negative rating action include deterioration of the credit
profiles of Raizen Combustiveis, Raizen Energia and/or Comgas,
and Cosan's interest coverage by dividends received falling below
2x on a sustainable basis. A downgrade of the sovereign rating
may also trigger a downgrade of Cosan's FC IDR and ratings for
the associated bond issuances.

Future developments that may, individually or collectively, lead
to a positive rating action include more predictable cash flow
generation at Raizen Energia, and Cosan's interest coverage by
dividends received remaining above 3x on a sustainable basis.


Cosan's debt maturity profile is well laddered and is not
expected to pressure the company's cash flows until 2018 when the
BRL850 million notes are due. Part of the proceeds from the 2027
senior unsecured notes recently issued by Cosan Luxembourg is
estimated to be used to prepay 60% of the 2018 notes and reduce
liquidity pressures in that year. As of March 31, 2016, the
holding company had BRL980 million of cash versus short-term debt
of BRL535 million, yielding robust cash-to-short-term debt
coverage of 1.8x. Fitch expects Cosan to receive a robust inflow
of dividends that should provide adequate repayment capacity for
upcoming interest. Cosan's liquidity is reinforced by a fully
available committed Stand-by Facility of BRL750 million and the
positive dividend track record.


Fitch has affirmed the following ratings:

Cosan S.A Industria e Comercio:
-- Long-Term Foreign Currency IDR at 'BB+'; Outlook Negative
-- Long-Term Local Currency IDR at 'BB+'; Outlook Stable
-- National scale rating at 'AA+(bra)'; Outlook Stable

Cosan Overseas Limited:
-- Perpetual notes at 'BB+'.

Cosan Luxembourg S.A.:
-- Senior unsecured notes due in 2018, 2023 and 2027 at 'BB+'.

GALAPAGOS HOLDING: Moody's Changes Outlook on B2 CFR to Neg.
Moody's Investors Service has changed the outlook to negative,
from stable on all of the ratings pertaining to Galapagos Holding
S.A. and its subsidiary Galapagos S.A.  The ratings have been
affirmed.  The affirmed ratings include the B2 corporate family
rating (CFR) and B2-PD probability of default rating (PDR)
assigned to Galapagos.  Additionally, Moody's has affirmed the
Caa1 rating pertaining to the senior unsecured notes of Galapagos
and the B1 rating pertaining to the Senior Secured Notes issued
by Galapagos S.A.


"The change in outlook primarily reflects Galapagos' elevated
leverage and deteriorating liquidity at a time when earnings are
under pressure," says Scott Phillips, a Moody's Vice President --
Senior Analyst and lead analyst for Galapagos.  "The shift in the
business towards its project business division Enexio will strain
margins while the timely execution of the order backlog will be
challenging", added Mr. Phillips.

In 2015, Galapagos simultaneously experienced a decline in its
core Kelvion business (which manufactures primarily finned tube
heat exchangers, plate heat exchangers as well as shell & tube
heat exchangers; 65% of group turnover) but a high amount of
order intake in its project business, Enexio (which manufactures
dry and wet cooling towers, 16%).  While Galapagos' order backlog
now stands around 11% higher in Q1 2016 compared with the year
before, leverage (at 6x Moody's adjusted debt / EBITDA) is above
the rating agency's guidance for the current rating and is
expected to further increase in the second quarter.  While
Moody's expects the company will successfully execute its order
backlog, which will bring leverage back towards its guidance
range, the group must generate around 70% of 2016 EBITDA in the
second half, which carries high execution risk.

The rating agency also anticipates that Galapagos' liquidity will
deteriorate over the next two to three quarters, reflecting both
the expected deterioration in earnings (and therefore operating
cash flow) at Kelvion but also an increase in working capital for
Enexio.  While Galapagos has benefitted from some advance
payments in the Enexio business, these will not likely repeat
before late Q3.  In addition, Galapagos is experiencing an
increase in bad debts in Asia-Pacific and a deterioration in
payments terms from some customers, which places a further strain
on liquidity.


The negative outlook reflects Moody's expectation that leverage
will remain outside of its guidance for the current B2 rating for
the next two to three quarters.  In addition, the group's ability
to deleverage thereafter is premised upon the successful
completion of its order backlog in its project business, Enexio,
which will be challenging.


Given the negative outlook, Moody's believes an upgrade is
unlikely in the short-term.  Nevertheless, Moody's could consider
an upgrade if Galapagos is able to deliver sufficient growth that
would enable sustained levels of positive free cash flow to be
generated and a reduction in leverage to below 4.5x debt / EBITDA
(including Moody's standard adjustments).  Conversely, the
ratings could be downgraded should the company not be able to
reduce debt/ EBITDA to below 5.5x over the next 12-24 months or
if free cash flow were to remain negative.  Similarly, a failure
to improve the liquidity could result in a downgrade.

The principal methodology used in these ratings was Global
Manufacturing Companies published in July 2014.

Galapagos Holding S.A. is a holding company, based in Luxembourg,
for a group of entities involved in the manufacturing of heat
exchangers for a variety of different industrial applications.
These primarily include the power generation and oil & gas
sectors but also the food & beverages, chemicals and marine
business areas.  Galapagos was formed through a de-merger from
its previous parent -- GEA (a German engineering company) in
May 2014 -- and was acquired by Triton Partners, a private equity
group.  In 2015, Galapagos achieved revenues (on a pro-forma
basis) of EUR1.4 billion.

OXEA SARL: Moody's Lowers CFR to B3, Outlook Negative
Moody's Investors Service has downgraded to B3 from B2, the
Corporate Family Rating and to B3-PD from B2-PD the Probability
of Default Rating (PDR) of Oxea, the ultimate holding
company of the subsidiary guarantors to the group's senior
secured credit facilities.  In addition, Moody's downgraded to B3
from B2 the rating on the first-lien senior secured credit
facility at Oxea's subsidiary Oxea Finance & Cy S.C.A.  The
outlook on all ratings was changed to negative from stable.


The downgrade of Oxea's CFR to B3 reflects Oxea's continued weak
operating performance since the company repaid its second-lien
senior secured credit facility with a $325 million cash injection
from its shareholder, Oman Oil Company (OOC, unrated), in

Credit metrics are weak for the current rating and worse than
Moody's expectations, with Moody's adjusted debt/EBITDA of 7.3x
in FY2015 compared to expectations of 6.5x.  The rating agency
expects minimal deleveraging this year and slightly negative free
cash flow due to higher capital expenditure of approximately
EUR80 million compared to EUR55 million in 2015.  This compares
to previous expectations of leverage slightly above 6.0x.
Performance has suffered as a result of a difficult economic
environment in Europe, declines in exports to Asia, as well
competitive pressures.  Additionally, Sabuco (an unrated joint
venture, with owners including Saudi Aramco (unrated) and The Dow
Chemical Company (Baa2 stable)) brought online 330 kmtonnes of
oxo capacity (approximately 2.5% of global capacity) in Q1 2016
further increasing pressure on that part of Oxea's business.

Oxea's B3 Corporate Family Rating (CFR) reflects (1) high
leverage that Moody's expects above 6.0x for an extended period
of time and only falling to approximately 6.5x by 2017; (2) a
challenging oversupplied oxo-market due to capacity additions in
Asia and the Middle East over the past few years as well as
competitive pricing pressure; (3) Moody's expectation that
despite a reduced interest cost following the second lien loan
repayment, the company will still generate negative free cash
flow (FCF) in the next 12 to 18 months due to margin erosion in
the Intermediate segment (oxo-alcohols) as well as capital
expenditures related to capacity expansion in the US Bayport
plant in the next two years; (4) the company's exposure to
cyclical industries and highly variable raw material costs,
especially the price of propylene, which tends to be tied to
general trends in oil prices.

However, more positively, the B3 CFR also reflects Moody's view
that (1) Oxea's capital structure has de-levered by 1.0x to 7.3x
between 2014 and 2015 following the second lien debt repayment;
(2) Oxea is a leading pure-play merchant producer of oxo
chemicals for the global chemicals market; (3) it had a proven
ability to generate solid cash flows through global and European
economic cycles and is expected to maintain adequate liquidity
throughout 2016; (4) the company's derivatives business is
expected to continue to benefit from low material prices with
derivative variable margins increasing 10.5% year-on-year in the
first quarter 2016; (5) Oxea's owner, OOC is pursuing investments
in the wider energy sector that are consistent with the long-term
strategy of its own owner, the Government of Oman (Baa1 stable).
Moody's views OOC as a strategic owner, with its acquisition of
Oxea from Advent in 2013 in line with its downstream strategy to
become an integrated player in the chemical industry with the
production of higher margin specialty chemicals.  This is shown
by OOC's injection of $325 million in cash last year to Oxea to
repay in full the second lien debt.  However, Moody's questions
OOC's willingness and ability to do so meaningfully going

Going forward, Moody's expects the oxo-chemicals market to remain
long through 2016, combined with continuing competitive pressure
in the intermediates business, with some margin erosion
compensated by increased derivatives margins but no anticipated
benefits from Oxea's additional capacity before 2018.

Moody's views the company's liquidity as adequate over the next
12-18 months, although weak if working capital moves
substantially more than expected.  As of March 31, 2016, the
company had available cash of EUR90 million and EUR89 million of
availability under its RCF that matures in 2018 (although
springing leverage covenants of 4.75x are likely to restrict
access to only 25% of the full EUR110 million if needed due to
the company's high leverage).

However, the rating agency still expects Oxea's liquidity is
sufficient to cover limited negative free cash flow, largely due
to high capital expenditure related to its capacity expansion in
the US.  Absent the RCF maturity in July 2018, there are no
significant debt repayments due before early 2020.


The negative outlook assumes that liquidity could come under
pressure due to the lack of visibility around challenging market
conditions and operational performance in 2016 remains weak as a
result of competitive pressure in the oxo business.


Although an upgrade is unlikely in the near term, positive
pressure on the rating could materialize if Oxea were to
sustainably achieve a Moody's-adjusted debt/EBITDA ratio below
6.0x and operational performance improves, whilst maintaining
adequate liquidity.  Conversely, Moody's would consider
downgrading Oxea's ratings if the company sustains debt/EBITDA
above 7.0x, substantial negative free-cash flow; or its liquidity

The principal methodology used in these ratings was Global
Chemical Industry Rating Methodology published in December 2013.

Incorporated in Luxembourg, Oxea is a leading global
producer of oxo intermediates and derivatives with a key product
portfolio of oxo chemical products and well-established market
positions in Europe, North America, Asia-Pacific, and South
America.  Oxo chemicals are critical to the production of other
chemicals used in a variety of industries such as automotive,
construction, industrial goods, consumer and retail,
pharmaceuticals, cosmetics, agriculture and packaging.  As of
financial year-end (FYE) December 2015, Oxea reported revenues
and EBITDA of EUR1.2 billion and EUR157 million, respectively and
on a Moody's-adjusted basis.


CHAPEL BV 2003-I: S&P Raises Rating on Class B Notes to CCC+
S&P Global Ratings took various rating actions in Chapel 2003-I
B.V. and Chapel 2007 B.V.

Specifically, S&P has:

   -- Raised and removed from CreditWatch positive its ratings on
      Chapel 2003-I's class A notes and Chapel 2007's class A2

   -- Raised its ratings on Chapel 2003-I's class B notes and
      Chapel 2007's class B and C notes; and

   -- Affirmed its ratings on Chapel 2003-I's class C notes and
      Chapel 2007's class D, E, and F notes.

The rating actions follow S&P's credit and cash flow analysis of
the transaction and the application of its current counterparty
criteria and S&P's European consumer finance criteria.  S&P's
analysis also considered setoff risk as a result of duty of care
claims.  S&P bases its setoff risk assessment on information
provided by the note trustee in relation to the framework
agreement between DSB Bank N.V.'s insolvency administrator,
consumer organizations, and legal insurers.

On March 31, 2016, S&P placed on CreditWatch positive its ratings
on Chapel 2003-I's class A notes and Chapel 2007's class A2 notes
to reflect the possibility of a full principal payout to the
issuer on the duty of care setoff claims.

As of the May 2016 payment date, the setoff recoveries for Chapel
2003-I have helped reduce the principal deficiency ledgers on the
unrated class D notes.  In turn, this has increased the available
credit enhancement for the rated notes, although the reserve fund
remains fully depleted.

In Chapel 2007 and as of the April 2016 payment date, the setoff
recoveries have helped replenish the reserve fund to
EUR12.31 million.  While this is still below its target level of
EUR20.7 million, it has also increased the available credit
enhancement for the rated notes.

As a result of the increased available credit enhancement, Chapel
2003-I's class A notes and Chapel 2007's class A2 notes can now
withstand the 'BBB' and 'A-' credit and cash flow stresses,
respectively, under S&P's European consumer finance criteria.
S&P has therefore raised and removed from CreditWatch positive
its ratings on these classes of notes.

S&P's analysis also indicates that the available credit
enhancement for Chapel 2003-I's class B notes and Chapel 2007's
class B and C notes is commensurate with higher ratings than
those currently assigned.  S&P has therefore raised its ratings
on these classes of notes.

As the period for borrowers to apply for compensation ended on
Nov. 8, 2015, the possible risk of future duty of care setoff
losses has reduced.  To date, the total realized compensation is
EUR46.23 million in Chapel 2003-I and EUR41.97 million in Chapel
2007.  In S&P's view, due to their position in the capital
structure, Chapel 2003-I's class C notes and Chapel 2007's class
D, E, and F notes remain most at risk of loss should the
abovementioned factors occur.  As these notes are still dependent
upon favorable economic conditions to pay principal and interest,
in accordance with S&P's criteria for assigning 'CCC' category
ratings, it has affirmed its 'CCC- (sf)' ratings on these classes
of notes.

The assets backing both transactions are consumer loans and
second lien mortgage loans, granted to individuals in the
Netherlands. DSB Bank (now insolvent) originated the loans in
both transactions.


Class               Rating
          To                    From

Chapel 2003-I B.V.
EUR1 Billion Asset-Backed Floating-Rate Notes

Rating Raised And Removed From CreditWatch Positive

A         BBB (sf)              B (sf)/Watch Pos

Rating Raised

B         CCC+ (sf)             CCC- (sf)

Rating Affirmed

C         CCC- (sf)

Chapel 2007 B.V.
EUR710.7 Million Asset-Backed Floating-Rate Notes And Excess-
Spread Backed Notes

Rating Raised And Removed From CreditWatch Positive

A2        A- (sf)               B (sf)/Watch Pos

Ratings Raised

B         BBB (sf)              CCC- (sf)
C         CCC+ (sf)             CCC- (sf)

Ratings Affirmed

D         CCC- (sf)
E         CCC- (sf)
F         CCC- (sf)

OI BRASIL: Moody's Lowers Rating on EUR600MM Global Bonds to C
Moody's Investors Service downgraded the ratings on the notes
issued by Oi S.A. and guaranteed by Telemar Norte Leste S.A. and
the unsecured debt at Oi S.A. to C.

At the same time Moody's America Latina downgraded Oi's corporate
family ratings ("CFR") to C/  As part of this rating action,
Moody's also downgraded the ratings on unsecured debt at Oi to

Moody's Investors Service also downgraded the unsecured debt at
Portugal Telecom International Finance, BV ("PTIF") and Oi Brasil
Holdings Cooperatief U.A. to C.  Moody's believes that these
notes are pari passu to unsecured debt at to the parent and
guarantor, Oi.

Moody's Investors Service also downgraded three specific note
issuances at Oi to which benefit from a subsidiary guarantee from
Telemar by two notches to C.  These three issuances, the 5.5% USD
notes due 2020, the 9.5% USD notes due 2019, and the 5.125%
EUR notes due 2017 were originally issued by Telemar but
transferred to Oi.  Moody's believes that the Telemar guarantee
is sufficient to differentiate the creditworthiness of these
issuances versus other unsecured obligations of Oi, but Moody's
estimates losses on these instruments to be also associated with
a C rating, preventing further differentiation on the ratings


Ratings downgraded:

Issuer: Oi S.A.

   -- EUR601 mil. GLOBAL BONDS due 2017: to C from Caa1
   -- USD142 mil. GLOBAL BONDS due 2019: to C from Caa1
   -- USD1,787 mil. GLOBAL BONDS due 2020: to C from Caa1
   -- BRL1,100 mil. GLOBAL BONDS due 2016: to C from Caa2
   -- USD1,500 mil. GLOBAL NOTES due 2022: to C from Caa2

Issuer: Portugal Telecom International Finance B.V.

   -- BACKED Senior Unsecured MTN: to (P) C from (P) Caa2
   -- EUR250 mil. GTD EURO MTNS due 2017: to C from Caa2
   -- EUR382 mil. GTD GLOBAL MTNS due 2017: to C from Caa2
   -- EUR750 mil. GTD EURO MTNS due 2018: to C from Caa2
   -- EUR50 mil. GTD FLT RT EURO MTNS due 2019: to C from Caa2
   -- EUR750 mil. GTD EURO MTNS due 2019: to C from Caa2
   -- EUR1,000 mil. GTD EURO MTNS due 2020: to C from Caa2
   -- EUR500 mil. GTD EURO MTNS due 2025: to C from Caa2

Issuer: Oi Brasil Holdings Cooperatief U.A.

   -- EUR600 mil. GTD GLOBAL BONDS due 2021: to C from Caa2

The downgrade follows Oi's filing for judicial recovery, the
closest equivalent to chapter 11 in Brazil.

The recovery filing contains BRL65.4 billion (~USD 19 billion) in
liabilities including BRL51 billion in financial debt of which
BRL31.6 billion held by bondholders.  Banco Nacional de
Desenvolvimento Economico e Social - BNDES (Ba2 negative), Caixa
Economica Federal (Ba2 negative) and Banco do Brasil S.A. ((P)
Ba2 negative) are creditors to around BRL13 billion, BNDES loans
are secured with 60% of the company's receivables that totaled
BRL8.6 billion in the end of March 2016.  The voluntary
bankruptcy filing was triggered after no agreement was reached
with bondholders in a negotiation that involved haircuts of up to
75% over the instruments' face value.

The judicial recovery request results from the company's
persistently increasing leverage and cash consumption, which has
reduced financial flexibility and has led to an untenable capital
structure.  There is no visibility of other options of
transforming events such as a merger or capital injection that
could lead to lower leverage, or a new debt issuance that would
result in a more comfortable maturity profile, and stronger
financial flexibility to avoid a default.  Oi had BRL8.5 billion
in cash at the end of March 2016 and upcoming maturities in the
order of BRL8.3 billion until the end of 2016, BRL8.8 billion in
2017, and BRL6.8 billion in 2018.  CAPEX is high at around
BRL5.0 billion per year and the company is not expected to
generate positive free cash flow at least until 2018, reinforcing
its dependency on the capital markets, currently closed, to
extend debt maturities.

Subsequent to today's actions, all Oi's ratings will be withdrawn
shortly following the filling for the restructuring proceeding.

The judicial recovery request needs to be ratified by
shareholders on an extraordinary shareholders' meeting on July 22
and then approved by the court.  Following the court decision
authorizing the filing, the company has 60 days to present the
recovery plan, that, if approved by the general meeting of
creditors, will bind all of the company's creditors that are
subject to the recovery proceeding.  Some claims are not part of
the recovery process, including credits subject to fiduciary
alienation, leases, taxes, and Advances on Exchange Contracts
(ACC).  The filing of a recovery leads to an automatic stay
period of 180 days, when all enforcement actions and executions
against the debtor are automatically suspended.

For the purpose of voting in reorganizations, creditors will be
divided into three broad classes: (i) Labor credits; (ii) Secured
credits; and (iii) Privileged, unsecured and subordinated
credits. All three classes must approve the recovery plan.  In
class (1) the plan should be approved by the majority of members
while in classes (2) and (3), the plan may be approved by at
least 50% of total claim amount and simple majority of members.
Secured creditors vote in class (2) up to the value of the
collateral and with class (3) for the deficient portion.

Oi's C corporate family rating reflects its untenable capital
structure, very limited financial flexibility given its large
debt burden and challenging momentum for funding through capital
markets.  In Moody's view the judicial recovery proceeding will
lead to severe losses to creditors, associated with a C rating.

On the operational side, despite the company's cost cutting and
efficiency efforts, its business will face further margin
deterioration from an unfavorable product mix shift to pay TV and
broadband and the price pressure inherent in its targeted value
segment, especially during the ongoing economic slowdown in
Brazil.  Further reductions in capital spending may result in
future operational and competitive challenges.

In our view, it is also inevitable to expect some level of
business disruption following the filling for judicial recovery,
such as client losses, issues in the negotiation with suppliers,
and employee turnover.  All those factors will put additional
pressure on the company?s operating performance.

The principal methodology used in these ratings was Global
Telecommunications Industry published in December 2010.

OI BRASIL: Fitch Affirms Rating on EUR600MM Notes at 'C/RR5'
Fitch Ratings has downgraded Oi S.A.'s (Oi) Long-Term Foreign-
and Local-Currency Issuer Default Ratings (IDR) to 'D' from 'C'.
Fitch has also downgraded the company's National Long-Term Rating
and local debentures rating to 'D(bra)' from 'C(bra)'. Fitch has
affirmed the existing ratings for Oi's senior notes.


The downgrades reflect Oi's filing for a request for judicial
reorganization with the Court of the State of Rio de Janeiro, as
disclosed by the company on June 20, 2016. The request also
includes Oi's subsidiaries, Oi Movel S.A., Telemar Norte Leste
S.A., Copart 4 Participacoes S.A., Copart 5 Participacoes S.A.,
Portgual Telecom International Finance BV, and Oi Brasil Holdings
Cooperatief U.A.

Oi, beset by its debt-laden precarious capital structure and
consistently negative FCF generation in recent years, was seeking
to reach an agreement with its creditors for potential debt
restructuring. However, the negotiation fell through and the
company decided to file for judicial reorganization as an
alternative for financial restructuring.


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

-- Fitch believes that the court will accept Oi's filings.


The company's ratings have reached the lowest level on Fitch's
rating scale. An upgrade is unlikely at this time given the
group's judicial reorganization filing.


Oi S.A.

-- Long-Term Foreign-Currency and Local-Currency IDRs downgraded
    to 'D' from 'C';

-- National Long-Term Rating downgraded to 'D(bra)' from 'C

-- Telemar Norte Leste, S.A.'s (Telemar) senior notes,
    originally due 2017, 2019, and 2020, affirmed at 'C/RR4';

-- All outstanding senior unsecured notes affirmed at 'C/RR5';

-- Local debentures downgraded to 'D(bra)' from 'C(bra)'.

Oi Brasil Holdings Cooperatief U.A. (Oi Netherlands)

-- EUR600 million senior notes due 2021 affirmed at 'C/RR5'.

Telemar notes, rated 'C/RR4', reflect average recovery prospects
in the event of default, given Telemar's position as the main
cash flow generator with operating assets. Securities rated 'RR4'
have characteristics consistent with securities historically
recovering 31% - 50% of current principal and related interest.
However, despite structural seniority compared to Oi's other
unsecured notes, Fitch has low visibility as to whether these
notes would be entitled to seniority under Brazil's legal system
upon judicial reorganization. Oi's other senior unsecured notes,
with Recovery Ratings of 'RR5', represent average recovery
prospects of 11% - 30% given default.


MAGELLAN MORTGAGES 4: Moody's Lowers Rating on Cl. B Notes to Ba3
Moody's Investors Service has downgraded the ratings of 2 notes
in Magellan Mortgages No. 4 plc. The rating action reflects a
correction of an assumption in the cash flow modeling for this

Issuer: Magellan Mortgages No. 4 plc

  EUR1413.75 mil. Class A Notes, Downgraded to Baa1 (sf);
   previously on May 6, 2016 Upgraded to A3 (sf)
  EUR33.75 mil. Class B Notes, Downgraded to Ba3 (sf); previously
   on May 6, 2016, Upgraded to Ba2 (sf)


The rating downgrade reflects the correction of an assumption in
our cash flow modelling for this transaction.

In our last rating action on May 6, 2016, a MILAN CE assumption
of 7.8% was used in the cash flow modeling of the transaction
instead of an assumption of 9.6%.  The action reflects the
correct cash flow modeling and assessment of its result.

Moody's Individual Loan Analysis Credit Enhancement (MILAN CE)
captures the stressed loss Moody's expects the portfolio to
suffer in the event of a severe recession scenario.  Under
Moody's structural analysis, the MILAN CE defines the credit
enhancement consistent with the highest rating achievable in the
country. Lowering/increasing the MILAN alters the loss
distribution curve and implies lower/increased probability of
high loss scenarios.

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

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

Factors that would lead to an upgrade or downgrade of the

Factors or circumstances that could lead to an upgrade of the
ratings include (1) performance of the underlying collateral that
is better than Moody's expected, (2) deleveraging of the capital
structure and (3) improvements in the credit quality of the
transaction counterparties and (4) a decrease in sovereign risk.

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


BILBOR MINERAL: Enters Into Bankruptcy After Seeking Insolvency
ACT Media reports that Bilbor Mineral Water, the producer of
Bilbor mineral water, got into bankruptcy one year approximately
after asking for insolvency.

"The judicial administrator was not approved and no one presented
a reorganisation plan and provisional judicial liquidator
nominated by the subscription" the report on the Bulletin for
insolvency procedures (BPI) said, ACT Media relates.

The majority shareholder of the company is United Romanian
Brewers Bereprod, the producer of Tuborg beer, the report

The majority shareholder Bilbor Mineral Water had in 2014 a
turnover of RON7.3 million and net loss of RON3 million. In 2015,
the company reported business zero and losses of RON6.1 million,
ACT Media discloses citing data from the ministry of finances.
Insolvency for the company was produced due to misunderstandings
between URBB and the minority shareholder of Bilbor, the report

Reuters, citing private news television Digi24, reports that
Hidroelectrica SA has exited insolvency, a local court ruled on
June 21.

It said the decision was not final and could be appealed, Reuters

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, Reuters

Hidroelectrica S.A. is a Romanian state-owned electricity


ER-TELECOM: S&P Assigns 'B+' CCR, Outlook Stable
S&P Global Ratings assigned its 'B+' long-term foreign currency
corporate credit rating to Er-Telecom.  The outlook is stable.

S&P has also assigned its 'ruA' Russia national scale rating to
the company.

The rating reflects the strong position of Er-Telecom in the
Russian broadband market and its robust growth, both organic and
through mergers and acquisitions (M&A), balanced by exposure to
the competitive and saturated Russian broadband market.  S&P also
factor in its expectation of adjusted debt to EBITDA of below or
close to 3.0x in 2016, increasing from 2.1x in 2015, coupled with
significant negative free operating cash flow (FOCF) driven by
investment in the network.  S&P assess Er-Telecom's liquidity as
less than adequate, since liquidity sources cover uses by around
1.0x, and availability under its long-term Russian ruble
RUB27 billion ($415 million) facility from VTB Bank expires early
July 2016.

Er-Telecom is Russia's second largest broadband operator after
the incumbent Rostelecom, offering internet, pay-TV, and fixed
telephony services under the DOM.RU brand.  Er-Telecom is
ultimately controlled by Russian businessman Andrey Kuzyaev via
Cyprus-registered Er-Telecom Holding Ltd.  Other shareholders of
Er-Telecom Holding are institutional investors (including Barings
Vostok, Sumitomo, UFG, EBRD, and others) and the management.

In previous years, Er-Telecom demonstrated very robust growth,
both organic and via acquisitions, with a strong 15.8% revenue
increase in 2014, slowing to 0.5% in 2015, bringing revenues to
RUB22.2 billion.  S&P's assessment of Er-Telecom's business risk
profile is supported by availability of its own backbone fiber
network and by its presence in 56 Russian cities with a total
population exceeding 30 million people and 12 million households.
As of early 2016, according to management, it had an 11% share of
the internet access market and 12% of the cable TV market.  S&P
also takes into account the company's recent entrance into the
Moscow business-to-business (B2B) market and strengthening of its
footprint in other Russian cities after the equity-swap based
acquisition of OOO Prestige-Internet (operating under the Enforta
brand), which was completed in late May 2016.  Enforta is a
Russian cable operator with 88 offices in 63 Russian regions and
with a platform covering 400 Russian cities.  Enforta's Russian
market share is estimated at 3%, and it has a strong value
proposition in B2B and business-to-government segments.

These factors are balanced by S&P's assessment of Er-Telecom's
business risk, factoring in the high country risks of operating
in Russia where 100% of Er-Telecom's assets are concentrated.
S&P notes that Russia is experiencing a general economic
slowdown, with real GDP growth projected at negative 1.3% in
2016, returning to 1% growth in 2017.  S&P also factors in the
saturated and very competitive broadband market where the
incumbent Rostelecom has a dominant position with a 38% market
share in business-to-customers and 34% in B2B.

In S&P's view, fierce competition will continue to put pressure
on Er-Telecom's margins. Er-Telecom's adjusted EBITDA margin fell
to 34.6% in 2015, from 40.6% in 2014, and S&P expects that it
will be below 30% in 2016, as a result of price pressure and the
acquisition of Enforta, whose margins have historically been
lower than Er-Telecom's, at around 24%.  That said, S&P expects
that margins will gradually rebound in 2017-2018 on the back of
synergies expected by management after integration of Enforta,
including overhead savings and lower network cost as Enforta will
be using the fiber infrastructure of Er-Telecom where technically

S&P's assessment of Er-Telecom's financial risk reflects the
company's moderate but increasing leverage (adjusted debt to
EBITDA of 2.1x at end-2015 compared with 1.7x at end-2014) and
S&P's expectation of significant negative FOCF generation in
2016. S&P expects that adjusted leverage will increase to around
3.0x by end-2016, with adjusted debt increasing to around RUB22
billion at year-end 2016 primarily to finance network investments
and dividends, from RUB15.8 billion at year-end 2015.  S&P
understands that the company is drawing down further on its RUB27
billion facility at VTB Bank, which we expect should remain
available to Er-Telecom under S&P's base case.  Currently, the
outstanding amount under this facility is around RUB17 billion;
otherwise the group's key liabilities include around RUB2.5
billion equivalent of a shareholder liability related to the
Enforta acquisition.

S&P factors into the rating the risk of a more aggressive
expansion strategy than it currently forecasts in its base case,
either organically or through acquisitions.  That said, S&P takes
into account the company's limitation on dividend payouts at 75%
of consolidated net income, which mitigates this risk.  S&P also
notes that it do not have full clarity over the financial
standing of the company's major shareholder.

The stable outlook reflects S&P's expectation that the company
will continue to show solid revenue and EBITDA growth.  S&P also
expects that Er-Telecom will be able to successfully integrate
Enforta, allowing improvement of operating margins in line with
S&P's base case.  S&P's stable outlook also factors in its
expectation that Er-Telecom will be able to secure additional
long-term financing within the next three months to fund the
network extension.  S&P also expects that S&P Global Ratings-
adjusted debt to EBITDA will remain below or close to 3x despite
the company's aggressive expansion strategy.

S&P could raise the rating if Er-Telecom's operating performance
continued to improve, including further market share gains
supporting revenue growth.  Furthermore, for an upgrade S&P would
need to see a sustainable long-term capital structure and solid
liquidity profile.  S&P would expect this to be combined with its
adjusted debt to EBITDA remaining consistently below 2x and the
company generating consistently positive FOCF.

S&P could lower the rating if the company failed to improve its
liquidity and secure a more long-term capital structure in the
next three months.  S&P would also downgrade if credit metrics
were to weaken significantly, including as a result of
significant M&A or a recapitalization.

RUSCOBANK JSC: Placed Under Provisional Administration
The Bank of Russia, by its Order No. OD-1912, dated June 21,
2016, revoked the banking license of Vsevolzhsk-based credit
institution joint-stock company Russian Commercial and Industrial
Bank (JSC Ruscobank) from June 21, 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, repeated violations within a year of the
requirements of Articles 6 and 7 (except for Clause 3 of Article
7) of the Federal Law "On Countering the Legalisation
(Laundering) of Criminally Obtained Incomes and the Financing of
Terrorism", and the related Bank of Russia regulations, and
application of supervisory measures envisaged by the Federal Law
"On the Central Bank of the Russian Federation (Bank of Russia)",
given a real threat to the depositors' and creditors' interests.

JSC Ruscobank implemented high-risk lending policy connected with
placement of funds into assets of unsatisfactory quality.  The
adequate risk assessment at the supervisor's request repeatedly
resulted in a considerable shortage of its capital and reasons
for implementing insolvency (bankruptcy) prevention measures in
the credit institution.  In addition, JSC Ruscobank did not
comply with the requirements of the legislation and Bank of
Russia regulations on anti-money laundering and the financing of
terrorism in terms of timely and detailed notification of the
authorized body.

By its Order No. OD-1913, dated June 21, 2016, the Bank of Russia
has appointed a provisional administration to JSC Ruscobank for
the period until the appointment of a receiver pursuant to the
Federal Law "On 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.

JSC Ruscobank is a member of the deposit insurance system. The
revocation of banking license is an insured event envisaged by
Federal Law No. 177-FZ "On Insurance of Household Deposits with
Russian Banks" regarding the bank's obligations on deposits of
households determined in accordance with the legislation.  This
Federal Law provides for the payment of insurance indemnity to
the bank's depositors, including individual entrepreneurs, in the
amount of 100% of their balances but not exceeding the total of
1.4 million rubles per depositor.

According to the financial statements, as of June 1, 2016, JSC
Ruscobank ranked 256th by assets in the Russian banking system.


TELEKOM SLOVENIJE: Moody's Changes Outlook on Ba2 CFR to Stable
Moody's Investors Service has changed to stable from negative the
outlook on the Ba2 corporate family rating, Ba2-PD probability of
default rating and Ba2 senior unsecured ratings of Slovenian
integrated telecommunications provider Telekom Slovenije d.d.  At
the same time, the rating agency has affirmed these ratings,
including the company's ba2 baseline credit assessment.

"We have stabilized the outlook on Telekom Slovenije's ratings to
reflect the material improvement in the company's previously weak
liquidity position following the successful completion of its
refinancing exercise," says Ivan Palacios, Moody's lead analyst
for Telekom Slovenije.

Telekom Slovenije will repay its short-term debt using the
proceeds of both the EUR300 million syndicated loan facility
signed in March 2016 and the EUR100 million bond recently issued
in the domestic market.  Near-term refinancing risk is no longer
a concern for the company.

                         RATINGS RATIONALE

The change in outlook to stable from negative reflects Telekom
Slovenije's improved liquidity profile following the completion
of its refinancing exercise.  The company signed in March 2016 a
EUR300 million syndicated loan facility with a number of
international and domestic banks, which will allow the company to
repay the EUR300 bond maturing December 2016.  Furthermore, the
company issued a EUR100 million bond in the domestic market,
which will mainly reduce the company's reliance on short-term
credit lines with domestic banks.  Its liquidity profile could be
further supported if the company executes its put option for its
stake in the Macedonian telecom ONE.VIP DOO.

In addition, Moody's also positively considers the reduction in
dividend payment for 2016 by 50%, which will free up cash flow
generation for other uses, such as increasing capex which will
support future revenue growth opportunities.


The stable rating outlook assumes that Telekom Slovenije will
perform according to its business plan while maintaining
sustainable credit metrics for the current rating category.  In
addition, it factors in Moody's expectation that the company will
maintain an adequate liquidity profile at all times.


Moody's would consider a rating upgrade of Telekom Slovenije's
rating if the company's credit metrics were to strengthen, such
as adjusted debt/EBITDA well below 2.0x, as a result of an
improvement in the overall business conditions supporting
stronger revenue, EBITDA and cash flow growth.  In addition, the
company would need to generate positive free cash flow on a
sustainable basis.

The rating could come under downward pressure if (1) the
company's underlying operating performance weakens beyond current
expectations; (2) the company were to make large extraordinary
shareholder distributions, or material debt-financed
acquisitions, investments or cash calls as a result of litigation
such that its credit metrics deteriorated (including adjusted
retained cash flow (RCF)/debt sustainably below 25% and adjusted
debt/EBITDA towards 2.5x).

The principal methodology used in these ratings was Global
Telecommunications Industry published in December 2010.

Headquartered in Ljubljana, Slovenia, Telekom Slovenije d.d. is
an integrated telecommunications provider in Slovenia and the
controlling company for the Telekom Slovenije Group, with a
presence in Kosovo, Macedonia, Bosnia and Herzegovina, Croatia,
Serbia and Montenegro.  Telekom Slovenije Group reported
operating revenues of EUR729 million and EBITDA of EUR201 million
in 2015. The Republic of Slovenia (Baa3 stable) directly and
indirectly owns 73.82% of the company.


AYT DEUDA I: S&P Lowers Rating on Class A Notes to 'CC(sf)'
S&P Global Ratings lowered to 'CC (sf)' from 'CCC (sf)' its
credit rating on AyT Deuda Subordinada I Fondo de Titulizacion de
Activos' class A notes.  At the same time, S&P has affirmed its
'D (sf)' ratings on the class B and C notes.

The rating actions follow S&P's review of the transaction's
performance and the application of its relevant criteria.

Since S&P's previous review on Dec. 24, 2014, there have been no
further credit events in the underlying portfolio.  In this
period, EUR855,000 of excess spread has been diverted from
interest proceeds to pay down the senior class A notes.  Despite
this, the class A notes remain undercollateralized by
EUR20.6 million.

While the transaction's legal final maturity falls in November
2019, exposure to the reference assets in the underlying
portfolio expires in November 2016.  After this date, the issuer
will no longer receive interest payments, and will therefore have
no cash inflows to fund the interest payments due on the class A
notes. The issuer is therefore reliant on liquidating the Banco
Mare Nostrum equity securities before the February 2017 payment
date in order to maintain timely payments on the class A notes.

The Banco Mare Nostrum equity securities were valued at
EUR70.6 million in the December 2015 issuer financial statements
(EUR87.8 million in the 2014 financial statements) indicating
that if the issuer is successful in liquidating these assets
before February 2017, the full repayment of the class A notes may
be achievable.

As there is no available credit enhancement for the most senior
class of notes and the window for liquidation of the equity
securities is decreasing, S&P has lowered to 'CC (sf)' from
'CCC (sf)' its rating on the class A notes.  In S&P's view, the
risk of nonpayment of principal on the class A notes has
increased since S&P's previous review.

S&P's ratings on the class B and C notes address timely interest
payments on each payment date and ultimate payment of principal
by the maturity date.  As the notes have been deferring interest
since August 2014, S&P has affirmed its 'D (sf)' ratings on the
class B and C notes.

AyT Deuda Subordinada I closed in November 2006 and is a cash
flow collateralized debt obligation (CDO) of subordinated debt
issued by Spanish savings banks.


AyT Deuda Subordinada I Fondo de Titulizacion de Activos
EUR298 mil asset-backed floating-rate notes

                                          Rating    Rating
Class             Identifier              To        From
A                 ES0312284005            CC (sf)   CCC (sf)
B                 ES0312284013            D (sf)    D (sf)
C                 ES0312284021            D (sf)    D (sf)

CAIXABANK CONSUMO 2: Moody's Rates Series B Notes (P)B3
Moody's Investors Service has assigned these provisional ratings
to notes to be issued by Caixabank Consumo 2, Fondo De

  EUR [1,170.0 million] Series A Floating Rate Asset Backed Notes
   due April 2060, Assigned (P)Aa3(sf)

  EUR[130.0 million] Series B Floating Rate Asset Backed Notes
   due April 2060, Assigned (P)B3 (sf)

                        RATINGS RATIONALE

The transaction is a static cash securitization of unsecured
consumer loans as well as consumer loans backed by mortgages and
consumer drawdowns of related mortgage lines of credit extended
to obligors in Spain by Caixabank, S.A. (Caixabank) (Baa1(cr)/
P-2(cr), Baa2 LT Bank Deposits).

The provisional portfolio of underlying assets consists of
unsecured and secured debt obligations originated in Spain for a
total balance of EUR1.39 bil., from which a final pool will be
selected, based on certain eligibility criteria, funded by the
issued notes equal to an amount of EUR1.30 bil.

As at May 2016, the provisional pool cut contains 145,036
contracts with a weighted average seasoning of 2.5 years.  The
portfolio consists of unsecured consumer loans and consumer loans
backed by mortgages or consumer drawdowns of related mortgage
lines of credit.  Loans are used for several purposes, such as
new or used car acquisition or repair, property improvement and
other undefined or general purposes.  Approximately 26.5% of the
pools is composed of vehicle related loans.  Mortgage loans
constitute 15.82% of the pool, and drawdowns of mortgage lines of
credit make up 9.16%.

According to Moody's, the transaction benefits from credit
strengths such as the granularity of the portfolio, the high
excess spread and the financial strength and securitization
experience of the originator.  However, Moody's notes that the
transaction features some credit weaknesses such as commingling
risk and the high degree of linkage to CaixaBank.  In addition,
the transaction is exposed to interest rate risk due to the
absence of a swap, given that the notes pay floating and the
assets pay a mixture of fixed rates and floating rates
referencing a variety of indices.  Commingling risk is partly
mitigated by the transfer of collections to the issuer account on
a daily basis.

Moody's analysis focused, amongst other factors, on (i) an
evaluation of the underlying portfolio of loans and the
eligibility criteria; (ii) historical performance information of
the total book and past ABS and RMBS transactions; (iii) the
credit enhancement provided by subordination and the reserve
fund; (iv) the static structure of the transaction (v) the
liquidity support available in the transaction by way of
principal to pay interest and the reserve fund; and the (vi)
overall legal and structural integrity of the transaction.


Moody's determined a portfolio lifetime expected mean default
rate of 6.5%, expected recoveries of 35% and Aa2 portfolio credit
enhancement ("PCE") of 18% related to the combined pool of
unsecured and secured receivables.  The expected defaults and
recoveries capture our expectations of performance considering
the current economic outlook, while the PCE captures the loss
Moody's expects the portfolio to suffer in the event of a severe
recession scenario.  Expected defaults and PCE are parameters
used by Moody's to calibrate its lognormal portfolio loss
distribution curve and to associate a probability with each
potential future loss scenario in its ABSROM cash flow model to
rate consumer ABS transactions.


The principal methodology used in these ratings was "Moody's
Approach to Rating Consumer Loan-Backed ABS" published in
September 2015.

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


Factors that may cause an upgrade of the ratings include a
significantly better than expected performance of the pool
together with an increase in credit enhancement of the notes.
Factors that may cause a downgrade of the ratings include a
decline in the overall performance of the pool and a significant
deterioration of the credit profile of the originator CaxiaBank,


Moody's used its cash flow model ABSROM as part of its
quantitative analysis of the transaction.  ABSROM enables users
to model various features of a standard European ABS
transaction -- including the specifics of the loss distribution
of the assets, their portfolio amortization profile, yield as
well as the specific priority of payments, swaps and reserve
funds on the liability side of the ABS structure.  The model is
used to represent the cash flows and determine the loss for each
tranche. The cash flow model evaluates all loss scenarios that
are then weighted considering the probabilities of the lognormal
distribution assumed for the portfolio loss rate.  In each loss
scenario, the corresponding loss for each class of notes is
calculated given the incoming cash flows from the assets and the
outgoing payments to third parties and noteholders.  Therefore,
the expected loss or EL for each tranche is the sum product of
(i) the probability of occurrence of each loss scenario; and (ii)
the loss derived from the cash flow model in each loss scenario
for each tranche.


In rating consumer loan ABS, the mean default rate and the
recovery rate are two key inputs that determine the transaction
cash flows in the cash flow model.  Parameter sensitivities for
this transaction have been calculated in the following manner:
Moody's tested 9 scenarios derived from the combination of mean
default: 6.5% (base case), 7.5% (base case +1%), 8.5% (base case
+ 2.0%) and recovery rate: 35.0% (base case), 30% (base case -
5%), 25% (base case - 10.0%).  The 6.5%/35% scenario would
represent the base case assumptions used in the initial rating
process.  At the time the rating was assigned, the model output
indicated that Class A would have achieved Baa2 even if the mean
default was as high as 8.5% with a recovery as low as 15% (all
other factors unchanged).  Class B would have achieved Caa2 in
the same scenario.

CAIXABANK CONSUMO 2: Fitch Rates EUR130MM Cl. B Notes 'B+(EXP)'
Fitch Ratings has assigned Caixabank Consumo 2, FTA's asset-
backed floating-rate notes, due April 2060, expected ratings, as

  EUR1,170 million Class A: 'A(EXP)sf'; Outlook Stable
  EUR130 million Class B: 'B+(EXP)sf'; Outlook Stable

This transaction is a securitization of unsecured loans and real
estate-secured consumer loans. All the loans are originated and
serviced by CaixaBank (BBB/Positive/F2), which is also the
account bank counterparty.

Final ratings are contingent on the receipt of final
documentation conforming to information already received.


Mixed Risk and Dual Criteria Approach
The collateral is comprised of two product types: unsecured
consumer loans (around 75%) and real estate (RE) secured consumer
loans (around 25%). The RE secured consumer loans have a weighted
remaining life to maturity of 16 years and the unsecured portion
of the collateral is shorter with a weighted remaining life to
maturity of four years.

The agency used its Global Consumer ABS Criteria to analyze
unsecured consumer loans granted to individuals and its EMEA RMBS
Rating Criteria complemented by Criteria Addendum: Spain -
Residential Mortgage Assumptions to analyze the remaining

Limited Credit Losses
Fitch has analyzed the unsecured portfolio's credit risks and
formed a base case default expectation of 4.5% and a recovery
rate expectation of 30% for the lifetime of the portfolio. These
base cases were derived based on historical data provided by
CaixaBank, dating back to 2006.

Fitch's lifetime default base case and recoveries expectations
for RE secured consumer loans are 10.6% and 43.8% respectively,
derived from its proprietary Spanish RMBS default model
(ResiGlobal), which is based on the criteria for analyzing
securities backed by Spanish residential mortgage loans.

Counterparty Dependency Caps Rating
CaixaBank acts as originator, servicer, bank account provider and
paying agent. CaixaBank's rating sufficiently mitigates payment
interruption risk for a note rating up to 'Asf' category.
CaixaBank will post a reserve upon the loss of a 'BBB' rating to
address commingling risk.

The rating of the notes is capped at 'A+sf', one notch higher
than the initial rating of the senior notes, as the rating
trigger upon which the account bank would be is set at 'BBB'.

Interest Rate Risk
The transaction is exposed to interest rate risk as a relevant
portion of the assets (around 72%) pay fixed interest rate while
both class A and B pay a floating coupon. Fitch found that notes
were able to withstand an increasing interest rate stress
commensurate with their rating derived in accordance with Fitch's
criteria for interest rate stresses in structured finance.

The impact of increasing interest rates is mitigated by the high
interest rate of fixed paying loans (around 9%), which makes
excess spread available at the beginning of the life of the
transaction even under an increasing interest rate scenario and
the fact that RE secured consumer loans (the ones with the
longest time to maturity) are majorly floating, thereby reducing
the potential mismatch at the end of the life of the deal.


Rating sensitivity to increased default rate assumptions
(class A/ class B)
Current rating: 'Asf' / 'B+sf'
Increase in default rate by 15: 'A-sf' / 'B-sf'
Increase in default rate by 30%: 'BBB+sf' / 'CCCsf'
Increase in default rate by 45%: 'BBBsf' / 'CCsf' or below

Rating sensitivity to reduced recovery rate assumptions
(class A/ class B)
Current rating: 'Asf' / 'B+sf'
Decrease in recovery rate by 15: 'Asf' / 'B-sf'
Decrease in recovery rate by 30%: 'A-sf' / 'B-sf'
Decrease in recovery by 45%: 'A-sf' / 'CCCsf'

Rating sensitivity to multiple factors (class A/ class B)
Current rating: 'Asf'/'B+sf'
Increase in default rate by 15%, decrease in recovery rate by
15%: 'BBB+sf' / 'CCCsf'
Increase in default rate by 30%, decrease in recovery rate by
30%: 'BBBsf' / 'CCsf'' or below
Increase in default rate by 45%, decrease in recovery rate by
45%: 'BBB-sf' / 'CCsf'' or below

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

Fitch reviewed the results of a third party assessment conducted
on the asset portfolio information, which indicated one error
related to the loan formalization information. This finding was
immaterial to this analysis, as set out more fully in the new
issue report. In addition, the loan affected by the finding was
excluded from the securitized pool as described in the
transaction prospectus

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

FTPYME BANCAJA 6: Fitch Raises Rating on Class B Notes to 'BBsf'
Fitch Ratings has upgraded FTPYME BANCAJA 6's class B notes and
affirmed the remaining notes, as follows:

EUR6.6 million Class A3 (ISIN ES0339735021): affirmed at 'Asf';
Outlook Stable

EUR47.5 million Class B (ISIN ES0339735039): upgraded to 'BBsf'
from 'Bsf'; Outlook Stable

EUR22.5 million Class C (ISIN ES0339735047): affirmed at 'CCsf';
Recovery Estimate 40%

EUR27 million Class D (ISIN ES0339735054): affirmed at 'Csf';
Recovery Estimate 0%

FTPYME Bancaja 6 is a cash flow securitization of loans to small-
and medium-sized Spanish enterprises (SMEs) granted by former
Caja de Ahorros de Valencia, Castellon y Alicante, now Bankia


Improving Portfolio Performance
The portfolio has amortized by EUR19.5 million since the last
review, on June 24, 2015, and is now 11% outstanding.
Delinquencies over 90 days have fallen from 6% to 3%. However,
the portfolio is relatively concentrated with the top 10 obligors
representing 19% of the portfolio. The transaction has received
EUR3.8 million of recoveries, marginally increasing the weighted
average recovery rate to 51.6% from 49.5%. Based on Fitch's
industry classification, the real estate and building and
material sectors represent 30% of the portfolio.

Class B Notes Upgraded
The upgrade of the class B notes reflects the continued
improvement in the transaction's performance. Since the last
review the class A3 notes have amortized by EUR19.3 million with
EUR3.6 million currently drawn on the guarantee.

Class A3, C and D notes Affirmed
Fitch said, "The rating of the class A3 notes is capped at 'Asf'
due to payment interruption risk. The reserve fund is depleted
and while the servicer is currently posting collateral to
mitigate commingling risk, the amount can be volatile and may not
be sufficient to ensure timely payment of senior fees and
interest on the notes should Bankia default.

"The class C notes have been affirmed at 'CCsf' as the reserve
fund is fully depleted and so the notes are first to absorb
further losses. Credit enhancement has been stable since our last
review and Fitch has maintained the Recovery Estimate of 40%. The
class D notes have been affirmed at 'Csf' as a depleted reserve
fund means the notes are no longer collateralized and so default
is inevitable. The class B and C notes are currently deferring


Fitch said, "We tested the ratings' sensitivity to a 25% increase
in the obligor default probability, a 25% reduction in expected
recovery rates and a combined sensitivity of the two. In all
cases we found that there would be no rating impact on the

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

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

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

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


SOLWAY INVESTMENT: Fitch Affirms 'B-/B' Issuer Default Ratings
Fitch Ratings has revised Swiss-based Solway Investment Group's
Outlook to Positive from Stable, while affirming the company's
Long- and Short-Term Issuer Default Ratings (IDR) at 'B-' and
'B', respectively.

The Outlook revision reflects the mining company's improved
liquidity position, debt reduction and continuing ramp-up of key
project Fenix, which will secure higher absolute (and potentially
more stable) operating cash-flows over the next three years.

Fenix Ramp Up
Fitch said, "Solway has recently completed its low-cost nickel
project Fenix in Guatemala, following delays in the ramp-up of
the planned capacity due to power constraints. All power
generation is expected to be switched to coal from heavy oil in
2016 (vs. 2015 as we previously expected). The smelter also
requires further works for the optimization of electricity
equipment, which will enable production volumes to reach full
capacity (20,000t p.a.) by end-2017. The company's ability to
deliver on this will be key to achieving Fitch-forecasted
financial metrics. By end-2016, we expect a minimum production of
14,000t to be achieved."

Low Prices Impact Profitability

Fitch said, "The downturn in commodity prices, and particularly
nickel, has negatively impacted Solway's profitability. We have
significantly lowered our expectations for Solway's earnings for
the next three years from our forecasts in June 2015, based on
revised nickel price assumptions of $US9,000/t-$US12,000/t vs.
$US16,500/t-$US19,000/t. We now expect the company to generate
approximately $US400 million EBITDA over 2016-2019 (vs. $US1
billion forecasted in 2015)."

Asset Disposal Improves Credit Metrics

In November 2015, Solway disposed of its Macedonian lead and zinc
mine SASA for $US180 million. The proceeds were partly used for
debt repayment ($US152 million repaid in 2015), with the
remaining amount being paid as dividends. Despite the dividend
leakage the sale of SASA and subsequent debt reduction has
significantly improved the company's credit metrics.

Fitch believes that the company is now focusing on the
improvement of Fenix smelter and will not make larger
acquisitions until the project is finalized. Smaller acquisition
activity is more likely, such as a non-controlling equity stake
it acquired in 1Q16 in a chrome development project in the
Philippines for less than $US1 million. Fitch believes that total
investment required for this project to date has been limited
(around $US10 million) and will not have a significant impact on
the company's future capex plans.

Solway is planning to raise a $US75 million pre-export finance
(PXF) facility in 2Q16, of which $US30 million will be spent on
Fenix and the remainder for other working capital purposes.

Positive Structural Changes

Fitch said, "The company's operating profile has improved since
2014 with the Fenix and KurilGeo projects generating positive
cash flows. Fenix is ramping up and will add $US13 million-$US20
million in EBITDA in 2016 and between $US70 million-$US80 million
p.a. to the company's EBITDA from end-2017 to 2019, based on our
updated nickel price assumptions."

KurilGeo contributed $US46 million of EBITDA in 2015, and is set
to contribute a further $US33 million in 2016 and $US20m per year
until 2019. The company's Macedonian copper asset is showing
stable operating performance; however, due to low copper prices
and improvement works its cash flow generation will weaken
substantially from 2016 ($US10 million expected in 2016-2017 vs.
$US24 million in 2015). The Ukrainian nickel processing plant
(PFP) is also expected to generate positive FCF, using nickel ore
form Guatemala, with an approximately $US20 million p.a. in
EBITDA contribution in 2016-2019.

Small Scale; Adequate Diversification

Solway is a small mining company with $US524 million revenues in
2015, producing ferronickel, copper and gold (zinc and lead
production sold in November 2015). In 2015, cash generation from
KurilGeo mine partly offset the fall of profitability of nickel
assets. Solway operates in countries with "high" and "medium"
risk relative to mining operations (Ukraine, Macedonia, Guatemala
and Russia), although this is partially mitigated by geographical

Below-average Corporate Governance

Solway has recently changed its company registration to Swiss.
The Swiss company -- Solway Investment Group GmbH -- holds the
company's core operating assets (Fenix, KurilGeo, Bucim and PFP).
Despite the potential benefit of the new company structure to
corporate governance, limited public information disclosure
continues to constrain the rating. The weak current corporate
governance profile largely reflects Solway's private company


-- Nickel mid-cycle price assumptions: $US9,000/t in 2016,
    $US10,500/t in 2017 and $US12,000/t in 2018;
-- Fenix to reach full capacity by end-2017
-- No disruptions to KurilGeo and Bucim operations;
-- $US75 million new PXF facility signed in 2016
-- No further M&A activity until end-2017
-- $US58 million capex in 2016 and $US23 million in 2017
-- $US10 million dividend payments in 2016 and $US5 million
    per year thereafter
-- No shareholders loans


Positive: Future developments that could lead to a positive
rating action include:

-- Sustained positive FCF from Fenix
-- FFO-adjusted gross leverage sustainably below 2.0x (2015:
-- Strengthening of the liquidity profile with a minimum
    available cash balance of $US30 million
-- Improvement of corporate governance, including greater
    transparency and information disclosure.

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

-- Further delays in key Fenix ramp-up
-- Sustained negative FCF
-- Deterioration of the liquidity profile


Fitch said, "Liquidity has improved in 2015 due to the sale of
SASA for $US180 million and $US50 million release of working
capital (due to equipment purchased for Fenix being moved from
inventory to constructed assets). The company repaid $US152
million in debt maturities and paid $US24 million dividends to
shareholders, leaving its cash balance unchanged from 2014 ($US46
million reported cash as of end-December 2015 vs. $US47 million
in 2014). Fitch treats $US28 million of reported 2015 $US46
million cash as restricted on the basis that $US13 million is
used as collateral for commodity price-hedging transactions and
$US15 million to maintain the minimum level of operations. For
2016-2019 we expect Solway to generate positive FCF ($US137
million) mainly due to Fenix, which will allow the company to
improve its cash balance."

The new $US75 million PXF financing will add to the company's
liquidity even though $US30 million of this facility will be
directed to Fenix capex.

At end-December 2015, Solway had $US49 million debt (excluding
financial guarantees), including $US29 million short-term
maturities. The PXF will be amortized in 2018-2019, when Fenix
should have reached full capacity and start generating cash flows
to cover debt repayment.

U N I T E D   K I N G D O M

BANARAS HALAL: Business Goes Into Administration
Dave Robson at reports that Banaras Halal Meats
Ltd., the business running a controversial East Cleveland
abattoir which villagers want shut down, has gone into

A notice in the London Gazette confirms the appointment of
administrators on May 25 to oversee Banaras Halal, according to

The Company's principal trading address is The Abattoir, High
Street, Boosbeck, but it is registered in Birmingham, according
to the report.

The GBP3 million Banaras Halal Meats (BHM) slaughterhouse first
opened in 2013 and has proved controversial ever since, with
furious villagers launching legal battles and making constant
appeals for councillors to close the facility, the report notes.

But the appointment of administrators in the Leeds District
Registry of the High Court marks another twist in the long-
running saga, the report relates.

The site had operated as an abattoir in the past but had lain
dormant for years until 2011 when BHM revealed plans to reopen
it, the report says.

Ever since it did reopen, many villagers have complained about
smells and animal noise emanating from the site, and disruption
caused by deliveries to it, the report notes.

A suggestion to issue a section 102 discontinuation of use order
was mooted, but the possible GBP4 million cost for Redcar and
Cleveland Council to buy the site, and the potential for a legal
counter-claim, saw the council instead continue negotiations with
BHM, the report relays.

It was subsequently agreed to appoint a dedicated environmental
health officer to monitor the site on a daily basis, the report

Legal proceedings between the council and the firm were also

Councillor Dale Quigley, the council's Cabinet member for
economic growth, said the authority and the company were no
longer involved in any legal proceedings, the report discloses.

The report relays that Mr. Quigley said: "We are aware of the
administration notice and are currently investigating the
position. In the meantime, officers will continue to monitor the

"The council has no legal proceedings under way at present which
would be affected by these circumstances," Mr. Quigley added.

It's believed work was continuing as usual on the site, although
villagers say the plant now operates as a meat processing plant,
with no slaughtering having taken place for several months, the
report adds.

Banaras Halal Meats declined to comment when contacted by The

BHS GROUP: MPs Quizzes Lady Green on Family's Retail Empire
Ashley Armstrong at The Telegraph reports that Lady Green, the
wife of Topshop tycoon Sir Philip, has been quizzed by MPs
investigating the collapse of BHS about the "complex web" which
controls the family's retail empire.

According to The Telegraph, Iain Wright, chairman of the
business, innovation and skills committee, has written to Lady
Green after further evidence raised "a whole array of further
questions . . . about how a big high-street name with 11,000
staff was sold for GBP1 to someone with no experience of retail."

The attempt to throw some light on the background to BHS's
failure comes as new evidence reveals that Sir Philip and his
advisers had believed last March that "insolvency was inevitable"
unless the retailer's pension deficit was restructured, The
Telegraph notes.

Mr. Wright, as cited by The Telegraph, said: "The evidence so far
points to a complex and very opaque web of privately-owned family
businesses which helped make the deal possible.  We are keen to
follow the money and look forward to Lady Green in her capacity
as owner and ultimate beneficiary of these companies writing to

Mr. Wright and Frank Field, chairman of the work and pensions
select committee, have written to Lady Green to request a full
list of the companies she and her family owns, including where
the companies are based and whether Sir Philip has a role, formal
or informal, in their running, The Telegraph relates.

The MPs are also pressing for further information about what
income the Green family gains from BHS -- either in management
fees, former dividends and rent bills -- and from the rest of its
retail empire, which includes Topshop, Topman, Wallis, Burton,
Miss Selfridge and Dorothy Perkins, The Telegraph discloses.

Mr. Wright told The Telegraph last week that he was considering
calling Lady Green following a tense, six-hour session with Sir

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

DREAMLAND: Calls in Administrators
---------------------------------- reports that just a year after reopening
following an GBP18 million refurbishment, the Dreamland amusement
park in Margate, Kent, on the coast to the south of London, has
called in administrators.

The park's operator, Sands Heritage, had struggled to turn the
park around after its restoration, the report notes.

In January, its creditors gave the operator five years to repay
GBP3 million in debts but there has been an insufficient number
of visitors to the park to meet costs, the report notes.

The park will remain open with free entry but the amusements will
now be on a pay-as-you-go basis, the report relays.

EIC LIMITED: Goes Into Administration; Cuts 398 Jobs
Redditch & Alcester Advertiser reports that almost 400 people
have lost their jobs as an Alcester-based electrical and
mechanical contractor enters administration.

The Tything Road-based EIC Limited, which was founded in 1971,
had a GBP80 million turnover, with 408 employees.

Kevin Coates, Sarah O'Toole, and Catherine Williamson of global
business-advisory firm AlixPartners Services UK LLP
(AlixPartners), were appointed joint administrators over EIC
Limited on June 16, according to Redditch & Alcester Advertiser.

In a joint statement, they said: "The company's financial
distress was driven by increasing pressure from its creditors as
a result of a poor recent trading performance, underpinned by an
ever increasing competitive market," the report notes.

"After exploring all options available, management concluded that
the cash pressures were too great and there was no alternative
but to place the company into administration," the statement

Some 398 people have already been made redundant, while 10 have
been retained to assist the administration.

FHB MORTGAGE: Moody's Puts Caa1 Rating Under Review for Downgrade
Moody's Investors Service has placed under review for downgrade
FHB Mortgage Bank CO. Plc.'s (FHB) baseline credit assessment
(BCA)/adjusted BCA of caa2, long-term deposit ratings of Caa1 and
long-term Counterparty Risk (CR) Assessment of B2(cr).  The
bank's short-term Not-Prime deposit ratings and Not-Prime(cr) CR
Assessment were not affected.

This rating action reflects the increased risks to the bank's
solvency and business prospects following continued sizable
losses during Q1 2016 as well as the recent measures taken by the
Hungarian authorities, including the bank's involvement in a
police investigation and imposing fines on the bank for previous
market misconduct by the central bank (MNB).  The rating action
also reflects Moody's concerns about the effects of negative
publicity on the bank's franchise.

As part of the ratings review, Moody's will evaluate FHB's
ongoing financial performance after it recorded a significant
loss in Q1 2016 as well as the bank's ability to counter capital
erosion.  FHB reported a 14.8% of CET1 ratio as of the end of the
first quarter. During the review period, the rating agency also
expects to obtain further clarity about the progress and
potential outcome of the recently initiated investigations by
authorities.  Any possible charges against the bank of serious
wrongdoings has the potential to result in material financial and
reputational costs for FHB and to further weaken its solvency.



The placing on review for downgrade of FHB's caa2 BCA and its
Caa1 deposit ratings reflects a number of factors, namely (1)
concerns about the weakening of the bank's standalone
creditworthiness following several measures taken by Hungarian
authorities in early June in combination with the bank being
pressured by ongoing losses during Q1 2016 after having received
a capital injection as of year-end 2015; and (2) FHB's
announcement to buy back additional Tier 1 (AT1) instruments
which has the potential to affect the one notch rating uplift
under Moody's Advanced Loss-Given-Failure (LGF) analysis.

Firstly, measures taken by Hungarian authorities in early June
relate to MNB fining FHB by HUF105 million (EUR333,000) for
misleading markets in relation to Eurobonds sale in 2012.
Further, the bank was involved in a police investigation, the
details of which have not been disclosed.

FHB's credit profile had been under pressure in the past several
years as the bank reported large losses mainly driven by
contracting revenues and high loan loss provisions against its
large stock of non-performing loans (mostly mortgages) that
equaled 11.6% of gross loans as of year-end 2015.  These large
losses resulted in a material depletion of the bank's capital
that led to its recapitalization by Takarekbank and other members
of SZHISZ in Q1 2016.  Whilst this capital increase helped raise
the bank's CET1 ratio to 14.8% as of end-Q1 2016 from 12.5% as of
year-end 2015, Moody's believes that FHB's capitalization will
likely remain under pressure stemming from high loan loss
provisions, declining revenues and other costs that could be
imposed by the Hungarian authorities.  FHB reported a net loss of
HUF1.28 billion in Q1 2016, which translates to a return on
equity of -4.7%.  The bank's liquid assets-to-total assets ratio
equalled 46% at the end of Q1 2016.

The second factor prompting the ratings review relates to FHB's
announcement on June 17, 2016 of the bank's agreement with the
holders of its EUR112 million perpetual capital securities
(additional Tier 1 instrument) to repurchase these securities
after receiving authorization from MNB.  According to FHB, after
the repurchase its capital adequacy ratio including Pillar 2
adjustments (SREP) would decline to 10.81% from 16.04% based on
the end-March 2016 figures.  The regulatory required minimum
level is 8%.  The repurchase of the AT1 instruments has the
potential to lower the subordination under Moody's Advanced LGF
analysis which currently results in a one notch ratings uplift
for the Caa1 deposit ratings.


The above mentioned developments significantly increase the risks
to FHB's solvency and franchise perspective as well as reduce the
protection for junior depositors from a lower volume of
subordinated debt instruments.

While any possible charges against the bank of serious
wrongdoings has the potential to result in material financial and
reputational costs for FHB, the rating agency will also assess
the potential effects of negative publicity on the bank's
franchise during the review period.

The rating agency will also review the options for FHB to rely on
the country's savings cooperative sector for any potential
recapitalization options in case of need.  The Hungary's
parliament approved on 7 June 2016 an amended legislation on the
sector with Takarekbank (unrated) as their central institution
being in charge of managing liquidity and solvency of all sector
members.  FHB, which has close links to the sector through mutual
shareholdings and strategic alliances, became a member of the
Integration Organization of Cooperative Institutions (SZHISZ) in
September 2015.


Any solid evidence that (1) the investigation into FHB's
activities would not result in large losses or impair its
franchise; and (2) the one notch uplift for the deposit ratings
under Moody's Advanced LGF analysis was preserved by a
sufficiently large cushion of subordinated debt could stabilise
the ratings.

Downward rating pressure could emerge (1) if the investigation
leads to accusations of serious wrongdoings by FHB, which could
undermine the bank's solvency and business prospects; and/or (2)
if the repayment of the AT1 debt securities would lead to a lower
cushion of subordinated obligations in the capital structure for
the benefit of depositors.


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

HUDSON AND MIDDLETON: Goes Into Administration
BBC News reports that a pottery firm in Stoke-on-Trent has gone
into administration, with 45 staff being made redundant
Managing Director Mike Shirley stated administrators were looking
for a buyer for Hudson and Middleton and blamed lack of orders
for the move, according to BBC News.

The GMB said some had worked there for more than 20 years so
would "find it hard to find alternative work," the report notes.

The union said it would do everything it could to support
employees, the report says.

Samantha Warburton, regional organiser for the GMB, said: "This
is shocking news for the pottery industry and especially for
those that work there," the report discloses.

"We are currently in talks with our members . . . . . We will be
setting up a workshop so members can learn new skills and to help
them get back into work," the report quoted Ms. Warburton as

MARSTON: Fitch Affirms Rating on Class B Notes at 'BB+'
Fitch Ratings has downgraded Marston's Issuer Plc's class A notes
and liquidity facility to 'BBB' from 'BBB+'. The Outlook is
Stable. Fitch has affirmed the class B notes at 'BB+' and revised
their Outlook to Stable from Negative.

Fitch said, "The downgrade is based on financial underperformance
as well as positioning relative to peers. The securitized
estate's EBITDA has been below Fitch's base case for two
consecutive years (EBITDA fell by 6.6% to GBP117.8 million y-o-y
in 2015 and by 0.9% to GBP116.7 million in 2016). Even on an
adjusted run-rate basis and accounting for the investments
following the disposals we believe that the EBITDA would have
been below the 2015 base case. The decline in total trailing 12
months (TTM) April 2016 EBITDA was primarily driven by a 2.2%
decrease in the managed estate EBITDA, which more than offset the
0.3% increase in EBITDA for the tenanted estate. Managed pubs'
underperformance was driven by an increase in operating costs
mainly due to a 3% rise in the national minimum wage in October

"The Fitch-calculated credit metrics are in line with the 'BBB'
category lower guidance range as per Fitch's UK WBS criteria for
the class A notes and the 'BB' upper range for the class B notes.
The one-notch downgrade of the class A notes reflects a lower
Fitch base case free cash flow (FCF) debt service coverage ratio
(DSCR) and higher leverage in relation to 'BBB' rated peers,
while taking into account our assessment of the 'Stronger' debt
structure of the class A notes. This feature is not present in
other 'BBB' and 'BBB-' rated classes for securitized pub peers,
M&B and Greene King. As the liquidity facility is expected to be
terminated and to default if the senior notes default, we have
aligned its rating with the class A notes."

Fitch's forecast base case DSCR, calculated to legal final
maturity, is below 1.6x for the class A notes and 1.4x for the
class B notes in contrast to the 2015 forecast of slightly above
1.6x and 1.4x, respectively. The main drivers of the revised
forecast are:

-- Lower number of securitized pubs in the tenanted estate,
    although Fitch has given credit to the completion of the
    three-year conversion program of tenanted pubs to the
    franchise model which is expected to result in further
-- Increased cost pressure on the managed estate until 2020,
    stemming from the phasing in of the national living wage,
    although Fitch also gives credit to management's planned
    strategy of targeted price increases to mitigate the impact.
-- Uncertainty around long-term profit forecasts due to material
    changes to the composition of the tenanted estate following
    disposals and conversions to the franchise model despite the
    positive trends.

The Stable Outlooks reflect Fitch's view that the securitization
will perform in line with current expectations, reflected in the
revised Fitch base case.


Industry Profile - Midrange

Fitch views the operating environment as "weaker". While the pub
sector in the UK has a long history, trading performance for some
assets has shown significant weakness in the past. The sector is
highly exposed to discretionary spending, strong competition
including from the off-trade, and other macro factors such as
minimum wages, rising utility costs and potential changes in
regulation such as the proposed statutory code in the
tenanted/leased segment.

Regulatory uncertainty has reduced significantly following the
enactment of the change in legislation governing the beer tie,
which resulted in the introduction of a statutory code with a
market rent only option (MRO). While the MRO breaks the tied
model that requires tenants to buy beer from the pubcos, the
impact on the tenanted estate, including the franchised pubs, for
Marston's is currently uncertain.

Fitch said, "We view the barriers to entry as 'midrange'.
Licencing laws and regulations are moderately stringent, and
managed pubs and tenanted pubs (i.e., non-full repairing and
insuring) are fairly capital-intensive. However, switching costs
are generally viewed as low, even though there may be some
positive brand and captive market effects.

"We view the sustainability of the sector as 'midrange' with the
strong pub culture in the UK expected to persist, thereby taking
a large portion of the eating-drinking-out market. In relation to
demographics, mild forecast population growth in the UK is a
credit positive."

Company Profile - Midrange

Financial performance is viewed as "midrange". Over the last five
years, performance has been relatively stable (securitized EBITDA
CAGR of -2.3%, driven primarily by the large disposal of weaker
tenanted pubs), with some vulnerability to negative industry

Fitch said, "We consider the company's operations to be
'midrange'. Fitch has given credit to management's strong pro-
activeness in turning around its tenanted business, including
being the first to launch the hybrid tenanted/managed pubs with
their RA (franchise agreement) and tracker agreements. Results
suggest that converted pubs experience a strong, double digit in
many cases, uplift in sales."

Fitch views transparency as "midrange". While financial reporting
still follows the managed/tenanted format, without separating out
the franchise pubs, there is still some uncertainty about the
exact impact of increased franchise pubs on profitability and
flexibility. However, there is sufficient information to form a
view on key trends.

Dependence on operator is viewed as "midrange". Due to the large
size of the estate, operator replacement is not viewed as
straightforward but should be possible within a reasonable period
of time.

Fitch said, "We view asset quality as 'midrange'. The pubs are
reasonably well-maintained. In the past few years, management has
channelled disposal proceeds into debt repayment (repayment of
the GBP80 million AB facility in January 2014), acquisitions and
capex. In the TTM to April 2016, Marston's spent GBP20 million on
maintenance capex for the securitized estate, which is above the
covenant level. The secondary market is reasonably strong.

Debt Structure: Class A: Stronger; Class B: Midrange
"We view the debt profile is viewed as 'stronger' for the class A
and B notes with all tranches fully amortizing. The liquidity
facility covers almost two years of debt service. Positive
factors include 100% fixed or hedged debt, although there is some
derivatives mark to market exposure."

Fitch views the security package as "stronger" for the class A
notes and 'midrange' for the class B notes. The security package
is strong with comprehensive first ranking fixed and floating
charges over borrower assets. Class A is the senior ranking
controlling creditor, with class B lower ranking resulting in a
"midrange" assessment.

Structural features are viewed as "stronger" for class A and
class B. Stronger features include a greater than 18-month
liquidity facility, highly rated financial counterparties with
adequate downgrade language and a clear orphan SPV. Marston's
also benefits from a non-ambivalent set of covenants and moderate
restricted payment and default covenants relative to the


A significant outperformance of the base case due to strong
growth in the managed estate division and further success of the
RA model, resulting in consistent deleveraging, could lead to an
upgrade. Fitch could consider an upgrade if its base case DSCR
returns to 1.8x for class A and 1.5x for class B.

However, an upgrade of the class A notes in the near term is less
likely than the class B notes. The prepayment of the class AB1
improved the debt metrics of the class B notes, bringing them
closer to the senior ranking class A notes. Hence, an upgrade of
the class B notes is more likely subject to further deleveraging.

On the downside, the ratings could be negatively impacted if
performance is significantly below the current base case, due,
for instance, to greater than expected cost pressure from the
introduction of the national living wage and/or even weaker than
expected performance of tenanted pubs. A further deterioration of
the Fitch base case DSCR below 1.4x for class A and 1.3x for
class B could lead to a downgrade.


The transaction is a securitization of both managed and tenanted
pubs operated by Marston's comprising 281 managed pubs and 932
tenanted pubs.

MATALAN HOLDCO: S&P Affirms 'CCC+' CCR, Outlook Stable
S&P Global Ratings said it has affirmed its 'CCC+' long-term
corporate credit rating on Missouri TopCo Ltd., a holding company
for U.K. apparel retailer Matalan.  The outlook is stable.

At the same time, S&P affirmed its 'CCC+' issue rating on the
GBP342 million senior secured notes issued by Matalan Finance
Ltd. The recovery rating on this debt is unchanged at '3',
indicating S&P's expectation of meaningful (50%-70%) recovery in
the event of a payment default (lower half of the range).

S&P also affirmed its 'CCC-' issue rating on the GBP150 million
second-lien notes issued by Matalan Finance PLC.  The recovery
rating on these notes is '6', reflecting S&P's expectation of
negligible (0%-10%) recovery prospects in the event of a default.

Matalan has announced that it has reset covenants contained in
the documentation governing its RCF, allowing it access to the
full amount of the facility over the next 12 months and
reinforcing its liquidity position.  In addition, the earnings
and cash flow reported in financial 2016 (ended Feb. 27) and
guidance for the next 12 months are less conservative than S&P's
previous expectation.  Together these factors lead S&P to revise
its assessment of the company's liquidity to adequate from less
than adequate.

S&P maintains its view that unless the company demonstrates
steady growth in its earnings and cash flow over the next 12
months, its capital structure could still be unsustainable in the
long term.

S&P's assessment of Matalan's business risk profile remains
constrained by the low visibility of earnings and the intrayear
seasonality of cash flow.  Likewise, S&P considers that Matalan's
competitive position could fail to improve because of fierce
competition in the value apparel segment, inability to execute
its strategy of accelerated growth of its online offering, or
failure to improve profitability margins in its apparel mix.
However, Matalan benefits from a diverse store network and direct
contact with its broad customer base by means of a customer
loyalty program.

S&P's assessment of Matalan's financial risk profile remains
highly leveraged.  In financial 2016, the company reported
GBP46 million EBITDA (including one-off restructuring and
exceptional items), which was lower than management's guidance of
GBP60 million (provided in June 2015; excluding one-off items)
but more than S&P's base case of about GBP30 million.  This
translates to an S&P Global Ratings-adjusted EBITDA-to-debt ratio
of 7.8x for the same period (more than 10x on reported basis;
that is, excluding an operating lease adjustments uplift of
GBP109 million to EBITDA, and about a GBP735 million increase in
debt).  EBITDA to interest cover was 1.7x in financial 2016
(compared with 2.2x in financial 2015) on an S&P Global Ratings-
adjusted basis and 1.2x on reported basis, excluding the effect
of operating leases.

S&P's base-case operating scenario for Matalan assumes:

   -- GDP growth in the U.K. of 2.0% in 2016 and 2.2% in 2017,
      driving consumer confidence and household consumption.
   -- Revenue growth of 1.0%-1.5% over the next two years.
   -- Adjusted EBITDA margin of about 16%-17% over the same
      period, compared with 14.7% in financial 2016.
   -- Annual gross capital expenditure (capex) of about
      GBP30 million-GBP35 million.

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

   -- Adjusted debt to EBITDA of about 7.0x?7.5x in financial
      2017, decreasing by about 1x in the following 12 months.
   -- Adjusted interest coverage of about 2x.
   -- FFO to debt of about 6%-8%.
   -- Reported EBITDAR (interest plus rent) of about 1.2x-1.3x,
      compared with 1.1x in financial 2016.

The stable outlook reflects S&P's expectation that over the next
12 months, Matalan will be able to maintain a broadly steady
customer and revenue base, overcome its operational challenges to
improve profitability, and avoid a further weakening of its cash
flows or liquidity.

S&P could consider an upgrade if the company improved its
operating performance over the next few quarters, demonstrating
that management's strategic initiatives were turning around
performance.  Any positive rating action would be contingent on
Matalan improving profitability and is on track to generate at
least neutral free operating cash flows (FOCF).

"Although this is not our expectation at the moment, we could
lower the rating if Matalan undertakes any credit-dilutive debt-
restructuring measures, such as an exchange offer--which we view
as distressed in nature.  We would consider any such debt
restructurings as tantamount to a default. Likewise, we could
lower the rating if Matalan faces deterioration in its liquidity
position, is unable to generate EBITDA high enough to cover its
interest expenses, or faces working capital stress leading to a
significantly negative FOCF," S&P said.

MY LOCAL: Morrisons to Hire Staff if Firm Ends in Administration
ShareCast News reports that Morrisons is offering to hire former
staff who lose their jobs as a result of the likely collapse of
My Local, the group which took over the supermarket's convenience
store chain last year.

My Local has filed a notice of intention to appoint
administrators, putting 1,700 jobs at risk, according to
ShareCast News.  In a statement, Morrisons said it would welcome
former colleagues back, the report notes.

"We are saddened and disappointed to learn that My Local is about
to enter administration.  We want to help our former colleagues
who now work for My Local," the company said, the report relays.

"We can therefore confirm that if no buyer is found, and stores
close, we will welcome our former colleagues back to a job at
Morrisons," the company said, the report notes

ShareCast News notes that accountancy firm KPMG, which has been
working with My Local's management on considering options for the
future of the 120-store chain, was lined up on Tuesday afternoon
to handle an administration, the Guardian reported.

Any appointment could mean a possible liability of up to GBP20
million for Morrisons, which sold the convenience store chain for
GBP25 million in September 2015 to a group fronted by the retail
veteran Mike Greene, the report added, ShareCast News says.

The My Local deal was backed by Greybull Capital.

As part of the sale of its convenience stores, Morrisons retained
a guarantee on a number of lease obligations, meaning that they
will revert to the supermarket if My Local collapses, ShareCast
News notes.

At the time of the sale, the leases on the stores were thought to
have an average of about five years remaining, the report stated,
ShareCast News relays.

Morrisons sold 140 My Local stores, at which about 2,300 people
were employed.

OLIVER ADAMS: Saved From Going Into Administration or Liquidation
Northampton Herald & Post reports that Northampton bakery Oliver
Adams has been saved from collapse after a crunch meeting -
despite already closing nearly a dozen of its stores in and
around the county.

The report says the bakery firm, established in the town in 1969,
has been forced to restructure in recent weeks after facing
trading difficulties, leading to 11 stores closing - resulting in
69 redundancies.

And just last week, insolvency practitioners 'Business Recovery
and Insolvency Limited' announced it had been drafted in to help
Oliver Adams to try and pay a list of 164 outstanding creditors,
the report relates.

According to the report, a crunch meeting was held on June 21
with those creditors -- of which 99% agreed to a Company
Voluntary Agreement (CVA), meaning Oliver Adams will avoid going
into administration or liquidation.

This also means that as well as being able to continue trading,
around 200 staff at the company will keep their jobs - despite 59
redundancies having already been made, the report says.

"I am very pleased creditors have voted in favour of the CVA, the
hard work starts now for the Company to meet its obligations
pursuant to the CVA," the report quotes Joint Supervisor, Peter
Windatt from Business Recovery and Insolvency, as saying.

"What was key to this successful first step on the road to
recovery is that the Directors sought our professional advice
early, which has helped in achieving this result.

"I'm confident the Company will continue to thrive for many more
years to come".

Among the 11 stores which have already closed recently are three
in Northampton, which include the one opposite The Old Bank pub
on the corner of Wood Hill, the store at 209 Wellingborough Road,
and one in Kettering Road.  Elsewhere, two have closed in
Kettering, one in Wellingborough, Daventry and Rushden, two in
Rugby, and one in Newport Pagnell, Northampton Herald & Post

PEABODY ENERGY: First Foreign Insolvency Case in Gibraltar
Cristina Cavilla at Gibraltar Chronicle reports that Peabody
Energy, the largest privately-owned coal mining group in the
world, is the subject of the first foreign insolvency case to be
dealt with in Gibraltar under new legislation.

Gibraltar Chronicle relates that Peabody Energy filed for
Chapter 11 bankruptcy proceedings in April in a US court, citing
"unprecedented" industry pressures and a sharp decline in the
price of coal.

In its Chapter 11 documents, Peabody, which had revenue of $5.6
billion in 2015 and about 7,100 employees globally, named two
companies as debtors.

One was the US parent, Peabody Energy Corp, the other a Gibraltar
subsidiary, Peabody Holdings (Gibraltar) Limited, the report

Chapter 11 proceedings are a way in which potentially insolvent
businesses and individuals in the US can propose to the US courts
a plan of reorganisation to keep the business alive and pay
creditors over time.

Gibraltar Chronicle says that at a hearing at Gibraltar's Supreme
Court earlier this month lawyers acting on behalf of Amy Schewtz,
Executive Vice President and Chief Financial Officer of Peabody
Energy, applied for recognition of those proceedings in respect
of the locally-registered Peabody Holdings Gibraltar.

Two Gibraltar subsidiaries hold and control the company's
Australian assets. Australia is home to ten of Peabody's 28 coal
mines, the report notes.

                  About Peabody Energy Corporation

Headquartered in St. Louis, Missouri, Peabody Energy Corporation
claims to be the world's largest private-sector coal company.  As
of Dec. 31, 2014, the Company owned interests in 26 active coal
mining operations located in the United States (U.S.) and
Australia.  The Company has a majority interest in 25 of those
mining operations and a 50% equity interest in the Middlemount
Mine in Australia.  In addition to its mining operations, the
Company markets and brokers coal from other coal producers, both
as principal and agent, and trade coal and freight-related
contracts through trading and business offices in Australia,
China, Germany, India, Indonesia, Singapore, the United Kingdom
and the U.S.

Peabody posted a net loss of $1.988 billion for 2015, wider from
the net loss of $777 million in 2014 and the $513 million net
loss in 2013.

At Dec. 31, 2015, the Company had total assets of $11.02 billion
against $10.1 billion in total liabilities, and stockholders'
equity of $919 million.

On April 13, 2016, Peabody Energy Corp. and 153 affiliates filed
voluntary petitions for relief under Chapter 11 of the United
States Bankruptcy Code.  The 154 cases are pending joint
administration before the Honorable Judge Barry S. Schermer under
Case No. 16-42529 in the U.S. Bankruptcy Court for the Eastern
District of Missouri.

As of the Petition Date, PEC has approximately $4.3 billion in
outstanding secured debt obligations and $4.5 billion in
outstanding unsecured debt obligations.

The Debtors tapped Jones Day as general counsel; Armstrong,
Teasdale LLP as local counsel; Lazard Freres & Co. LLC and
investment banker Lazard PTY Limited as investment banker; FTI
Consulting, Inc., as financial advisors; and Kurtzman Carson
Consultants, LLC, as claims, ballot and noticing agent.

TATA STEEL UK: Pension Payment Cuts Pose "Significant Risks"
Josephine Cumbo at The Financial Times reports that proposals to
boost the survival hopes of Tata Steel's UK plants by cutting the
level of pension payments pose "significant risks", the
government has been warned.

The 130,000 members of the British Steel Pension Scheme would
receive smaller or even no annual pension rises under the
proposals, the FT discloses.  This is seen as critical to keeping
Tata Steel, the backer of the British Steel scheme, attractive to
buyers, the FT notes.

But the Pension Protection Fund, the safety net for members of
defined benefit schemes, rejected the suggestion in its official
response to a consultation on changes to law to allow the British
Steel scheme to water down member benefits, the FT relates.

According to the FT, the trustees of the GBP13 billion scheme
said the proposal would allow them to keep members out of the PPF
and thus avoid a more substantial cut in pensioner incomes.
However, on June 21, the PPF, an arms-length public body, said
the proposal posed "significant risks for relatively limited
gains", the FT relays.

"The majority of members would receive roughly the same as they
would in the PPF and a minority would be worse off," the FT
quotes the PPF as saying.  "The number that are worse off could
grow, depending on the early retirement and lump sum commutation
factors the scheme intends to use."

Tata Steel is the UK's biggest steel company.


* EC Plans to Set Common Approach to Bank Bondholder Bail-ins
Jim Brunsden and Thomas Hale at The Financial Times report that
EU regulators are set to intervene in a split between countries
over how to force losses on investors in failed banks amid
concerns that a patchwork of different approaches would make it
harder to wind down a big cross-border lender.

Rules agreed last year by the G20 leading economies are designed
to prevent the kind of taxpayer bailouts that occurred during the
financial crisis, the FT discloses.  They force banks to have a
certain amount of special "loss-absorbing" debt, the FT says.
EU-wide regulations to implement the agreement are being launched
by Brussels, the FT notes.

But problems have arisen as Germany, France and Italy have sought
to change their national rules so their banks' senior debt, such
as bonds, will count towards the new international requirements,
the FT states.  The moves center on making sure senior
bondholders take losses ahead of depositors and other senior
creditors such as counterparties on derivatives, the FT notes.

The European Commission believes the different approaches could
"impede the resolution of cross-border banks and provide
uncertainty for issuers and investors alike", according to a
document obtained by the FT.

According to the FT, Brussels also has a broader concern about
possible disruptions to the debt market, as differing treatment
of senior debt could spur "competitive distortions" between

The commission is looking at solving the matter by setting a
"common approach towards the insolvency ranking of certain banks'
creditors," according to the document, which is set to be
discussed at a meeting of national officials in Brussels today,
June 23, the FT relays.


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  Go to 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,

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

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

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

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

                 * * * End of Transmission * * *