TCREUR_Public/160712.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Tuesday, July 12, 2016, Vol. 17, No. 136


                            Headlines


A U S T R I A

RAIFFEISENLANDESBANK: Moody's Assigns Adjusted Ba1 BCA Rating


F R A N C E

DECOMEUBLES PARTNERS: Fitch Hikes Senior Notes Rating to B+/RR2


G E R M A N Y

* GERMANY: Business Insolvencies Down 8.9% to 1,882 in April


I R E L A N D

CVC CORDATUS: S&P Assigns Prelim. B- Rating to Class F Notes
ZOO ABS IV: Fitch Hikes Class P Debt Rating to 'Bsf'


I T A L Y

MONTE DEI PASCHI: Italy Mulls Capital Injection, Talks Underway


K A Z A K H S T A N

HALYK BANK: S&P Affirms 'BB/B' CCRs, Outlook Revised to Negative


L U X E M B O U R G

4FINANCE HOLDING: S&P Puts 'B+' CCR on CreditWatch Developing


N E T H E R L A N D S

AURORUS BV 2016: Fitch Assigns 'B(EXP)sf' Rating to Class E Notes
DUTCH MORTGAGE XII: Moody's Says Swap Amendment No Rating Impact
E-MAC NL 2007-I: S&P Lowers Rating on Class D Notes to 'B-'
E-MAC NL 2008-IV: S&P Lowers Rating on Class D Notes to 'B-'
ENDEMOL SHINE: S&P Affirms 'B-' CCR, Outlook Negative

X5 RETAIL: Moody's Changes Outlook on Ba3 CFR to Positive


R U S S I A

ALROSA PJSC: Moody's Ba1 Rating Unaffected by Stake Privatization
BANK FOR INNOVATION: S&P Cuts ICR to CCC+ Then Withdraws Rating
GAZPROMBANK JSC: S&P Affirms 'BB+/B' Counterparty Ratings
RENAISSANCE CREDIT: S&P Affirms 'B-' Counterparty Credit Ratings
* RUSSIA: Number of Insolvent Companies Unchanged in June 2016


S W E D E N

SAS AB: S&P Raises Corporate Credit Rating to 'B', Outlook Stable


U N I T E D   K I N G D O M

AUSTIN REED: Collapse to Impact Unsecured Creditors
G4S: To Sell ATM Business to IBM to Cut Debts
IGAS: Faces Covenant Breach Risk, Fund Buys Quarter of Bonds
JERROLD HOLDINGS: S&P Affirms BB- Rating, Outlook Revised to Neg
SANDWELL COMMERCIAL: S&P Lowers Rating on Class E Notes to CCC-


                            *********


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A U S T R I A
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RAIFFEISENLANDESBANK: Moody's Assigns Adjusted Ba1 BCA Rating
-------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)Aaa long-
term rating to the covered bonds issued by Raiffeisenlandesbank
Oberoesterreich AG (the issuer, RLB OOE, deposits Baa2; adjusted
baseline credit assessment ba1; counterparty risk (CR) assessment
Baa1(cr)). The covered bonds are governed by the Austrian Covered
Bond Act.

RATINGS RATIONALE

A covered bond benefits from (1) the issuer's promise to pay
interest and principal on the bonds; and (2) following a CB
anchor event, the economic benefit of a collateral pool (the
cover pool). The ratings therefore reflect the following factors:

(i) The credit strength of RLB OOE (deposits Baa2; adjusted
     baseline credit assessment ba1; CR assessment Baa1(cr) and a
     CB anchor of CR assessment plus 1 notch).

(ii) Following a CB anchor event the value of the cover pool. The
     stressed level of losses on the cover pool assets following
     a CB anchor event (cover pool losses) for this transaction
     is 25.3%.

Moody's considered the following factors in its analysis of the
cover pool's value:

(i) The credit quality of the assets backing the covered bonds.
     The covered bonds are backed primarily by residential and
     commercial mortgage loans originated in Austria. The
     collateral score for the cover pool is 8.0%.

(ii) The legal framework. Notable aspects of the Austrian Covered
     Bond Act ("Gesetz betreffend fundierte
     Bankschuldverschreibungen") include that (i) the issuer must
     be a regulated and supervised bank; (ii) a cover pool
     monitor (Regierungskommissar) will monitor the day-to-day
     operations of the cover pool on a regular basis; (iii) at a
     minimum, there will always be a match between the nominal
     values of the cover pool assets and the outstanding covered
     bonds.

(iii) The exposure to market risk, which is 19.9% for this cover
     pool.

(iv) Based on an expected total issuance volume of EUR894
      million (including EUR500 million expected issuance), the
      over-collateralization (OC) in the cover pool will be about
      37.1% on a nominal value basis, of which the issuer
      provides 0% on a "committed" basis (see Key Rating
      Assumptions/Factors, below).

TPI assigned to this transaction is Probable, in line with other
mortgage programs in Austria. Moody's TPI framework does not
constrain the rating.

As of February 8, 2016, the total value of the assets included in
the cover pool is approximately EUR1.2 billion, comprising
residential mortgage loans (53.9%), commercial mortgage loans
(42.3%) and promoted housing mortgage loans (3.8%). The loans are
secured on properties located in Austria. The residential loans
have a weighted-average (WA) seasoning of 25 months and a WA
loan-to-value (LTV) ratio of 70.0%. The commercial loans have a
WA seasoning of 32 months and a WA LTV ratio of 62.2%.

The provisional rating that Moody's has assigned addresses the
expected loss posed to investors. Moody's ratings address only
the credit risks associated with the transaction. Moody's did not
address other non-credit risks, but these may have a significant
effect on yield to investors. Moody's issues provisional ratings
in advance of the final sale of securities and these ratings only
represent Moody's preliminary opinion. Upon a conclusive review
of the transaction and associated documentation Moody's will
endeavor to assign a definitive rating to the covered bonds.

KEY RATING ASSUMPTIONS/FACTORS

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

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

The CB anchor for this program is CR assessment plus one notch.
The CR assessment reflects an issuer's ability to avoid
defaulting on certain senior bank operating obligations and
contractual commitments, including covered bonds. Moody's may use
a CB anchor of CR assessment plus one notch in the European Union
or otherwise where an operational resolution regime is
particularly likely to ensure continuity of covered bond
payments.

The cover pool losses for this program are 25.3%. This is an
estimate of the losses Moody's currently models following a CB
anchor event. Moody's splits cover pool losses between market
risk of 19.9% and collateral risk of 5.4%. Market risk measures
losses stemming from refinancing risk and risks related to
interest-rate and currency mismatches (these losses may also
include certain legal risks). Collateral risk measures losses
resulting directly from cover pool assets' credit quality.
Moody's derives collateral risk from the collateral score, which
for this program is currently 8.0%.

Based on an issuance of EUR894 million the over-collateralization
in the cover pool is 37.1%, on a nominal value basis of which the
issuer provides 0% on a "committed" basis. The minimum OC level
consistent with the (P)Aaa rating is 19.0%, of which the issuer
should provide 0% in a "committed" form (numbers in nominal
terms). These numbers show that Moody's is relying on
"uncommitted" OC in its expected loss analysis.

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

FACTORS THAT WOULD LEAD TO A DOWNGRADE OF THE RATINGS:

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

Based on the current TPI of "Probable", the TPI Leeway for this
program is 0 notches. This implies that Moody's might downgrade
the covered bonds because of a TPI cap, if it lowers the CB
anchor by 1 notches all other variables being equal.

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



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F R A N C E
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DECOMEUBLES PARTNERS: Fitch Hikes Senior Notes Rating to B+/RR2
---------------------------------------------------------------
Fitch Ratings has placed Decomeubles Partners SAS's (BUT) Long-
Term Issuer Default Rating (IDR) of 'B-' on Rating Watch Positive
(RWP). Simultaneously the agency has upgraded BUT SAS's EUR246
million senior secured notes' rating to 'B+'/'RR2'/79% from
'B'/'RR3'/68% on the basis of revised stronger recovery
expectations upon default and placed it on RWP.

Fitch said, "The RWP reflects our expectations that we could
upgrade BUT's IDR should the current capital structure stay in
place after the announced sale of the group to a new consortium
(to be completed in 2H16), providing a level of leverage and
degree of financial flexibility compatible with a 'B' rating.
However a more aggressive debt financing structure could result
in the IDR being affirmed at 'B-'."

The RWP also reflects BUT's strengthened business profile,
supported by an enhanced business model which provides the group
with higher and more resilient profitability. Fitch also factors
in BUT's enhanced free cash flow (FCF) generation capacity
(regardless of capital structure considerations), supported by
higher profitability and strongly improved working capital
management.

KEY RATING DRIVERS

Sales Announcement, Leverage Impact

BUT has recently stated that it has granted exclusivity to a
consortium set up between CD&R and WM Holding, an investment
company associated with the XXL Lutz group based on a binding and
irrevocable offer to acquire 100% of BUT's share capital.

Fitch said, "Completion of the transaction is still subject to
various steps and currently there is little clarity on the
financing structure. However the current EUR246 million senior
secured notes carry a portable clause on a change of control
event which does not allow the put at 101 if the consolidated
gross debt/EBITDA is below 3.4x prior to July 2016 (below 3.25x
after July 2016), which we believe will be met. In addition,
there is limited capacity to incur additional debt under the
current bond documentation. Therefore if the current capital
structure remains in place, we estimate FFO adjusted leverage
will decrease below 6x from FY16 (ending June 2016) which, if
maintained, could result in a higher IDR. At present, any
positive rating action would be limited to one notch.

Improved Business Model

"Fitch views BUT's business model as sustainable and sees
moderate execution risks in its growth strategy, both consistent
with a higher rating. We take a positive view of the group's
successful business model evolution, with ongoing strong gains in
EBITDA and EBITDA margin. These gains are largely driven by
management's measures to optimize the group's product offering
(refined range and price mix), owned-store/franchise mix and
logistics operations. Fitch expects BUT's EBITDA between FY14 and
FY16 to rise to EUR88 million (6% margin) from EUR47 million
(3.7% margin) from a combination of top-line growth and strong
gross margin improvement while the fixed cost base remains under
control."

Fitch believes that following the acquisition of the 18 Yvrai
franchise stores in September 2016, BUT's ability to obtain
further gains in profitability will be limited as the bulk of the
group's cost structure optimization comes to an end.
Nevertheless, it should be supported by like-for-like sales
growth, further improvement in purchasing power from higher
volumes and the ongoing development of the higher-margin
decoration range.

Supportive Market Environment

BUT's trading environment is improving, driven by firmer French
GDP growth prospects (based on Fitch's forecasts: 1.3% in 2016
and 1.4% in 2017, up from 0.2% and 1.1% in 2014 and 2015,
respectively) and recovering consumer confidence. BUT's core
furniture market in France increased 2.4% in 2015 and stayed
strong in the first four months of 2016 (source: IPEA) after
three consecutive years of decline. Fitch forecasts continued
growth over the next three years and expects this to benefit BUT
due to its solid third largest position in the market.

Strong Market Position

Fitch said, "According to the IPEA, BUT's market share increased
to 13.1% in 2015 from 11.3% in 2013. BUT benefited from an
improved product offering and store openings. The top three
players' (IKEA, Conforama and BUT) market share grew to 47.1% in
2015 from 41.6% in 2010, to the detriment of smaller independent
retailers. Fitch expects BUT's market share to be at least
sustainable. We believe that the group has growth opportunities
in the French market as Conforama concentrates on its
international development. In addition, BUT retains more
opportunity to develop in smaller catchment areas than IKEA,
whose bigger stores are more adapted to large urban areas.

"We forecast BUT's revenues to grow in excess of 6% CAGR over
FY16-FY19, due to moderate network expansion, multi-channel
development and further improvement in product offering,
principally through the extension of the decoration range and
development of online sales."

Low Diversification

Low geographic and sales channel diversification remains a key
constraint on the ratings. BUT's concentration in the French
market increases the group's vulnerability to local market swings
and limits growth opportunities over the medium term. Fitch views
positively management's implemented cross-channel strategy
through the development of 'click and collect' sales, which is
supported by a dense store and pick-up point network. Although it
is growing fast, BUT's online penetration remains low, at 2.6% of
total revenues in FY15. This increases its vulnerability to more
developed (either pure online or multi-channel) competitors in a
fast-growing segment.

Profitability Supported by Consumer Financing

Credit income generated from consumer financing supports EBITDA,
adding approximately 100bps to the EBITDA margin. Consumer
finance is a key part of BUT's promotional activity, a strong
sales driver, and a source of differentiation against competitors
with a 25% credit penetration rate of its customer base. Given
the integral role of consumer finance in BUT's business model and
the ring-fenced nature of the associated credit risk, Fitch
includes consumer finance contribution in its operating EBITDA
calculation.

Financial Flexibility

Considering Fitch's view of a structural improvement in the
group's business profile, in line with 'B' rated peers, a
potential upgrade depends on its financial profile. The
maintenance of the current financing structure would allow the
company to execute its growth strategy under the new owners, in
which case Fitch expects annual average FCF at 2.5% of sales over
FY16-FY19 compared with 1.2% over the past four years. This
compares well with 'B' non-food retail peers and is driven by the
improvement of the group's business model, principally in terms
of profitability and management of working capital needs
resulting from management's successful optimization measures.
Furthermore, Fitch expects reduced FCF volatility due to
increased resilience of the group's business model.

Fitch said, "In addition, we forecast BUT's FFO fixed charge
cover to remain stable at 1.6x over FY17-FY19. This is relatively
weak compared with peers rated 'B' and reflects the asset-light
business model and increased share of directly-operated stores.
In our view, this is counterbalanced by the group's adequate
liquidity buffer, supported by its cash generative profile along
with a moderate appetite for acquisitions."

Senior Secured Notes' Rating

Fitch believes that expected recoveries would be maximized in a
going-concern scenario rather than in liquidation given the
asset-light nature of BUT's business, where Fitch views the brand
value and established retail network as key assets. The expected
senior secured debt recovery is underpinned by guarantors
representing at least 85% of the group's EBITDA and by
noteholders' second-ranking claim on any enforcement proceeds in
a distressed sale of assets or the business.

Fitch estimates that senior secured noteholders can expect a
recovery rate of 79% (equivalent to RR2), leading to a two-notch
uplift for the senior secured instrument rating from the IDR to
'B+'. Fitch has updated its underlying recovery assumptions by
increasing its estimate of the group's distressed EBITDA, taking
into account the strengthening of the group's business model as
well as its growing scale, including upcoming acquisition of the
Yvrai stores. Fitch's assumption regarding BUT's EV/EBITDA
multiple remains unchanged at 4.5x and reflects the group's lack
of diversification, which remains a key constraint to its
business profile.

KEY ASSUMPTIONS

Fitch's assumptions below assume no change in capital structure.

-- Mid-single digit like-for-like sales growth in FY16,
    moderating over FY17-FY20 to the lower single digits
-- Revenues growing at 7.7% CAGR over FY15-FY19 (FY16: 12% yoy)
    supported by like-for-like sales growth, owned-store and
    franchise openings, and stores transfers
-- EBITDA margin up at 6.0% in FY16, from 5.2% in FY15, growing
    to 6.2% by FY19
-- Yearly working capital inflows, albeit moderating after June
    2016, driven by sales growth and further improvement in
    management of working capital needs
-- Average annual capex at 2.2% of sales over FY16-FY19
-- No dividends
-- Average FCF at 2.5% of sales over FY16-FY19
-- Acquisition spending of EUR52m in FY17 (of which EUR48.2m is
    for the Yvrai stores) and EUR3m in FY18 for buyback of
    franchise stores

RATING SENSITIVITIES

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

  -- Maintenance of the current capital structure resulting in
     FFO adjusted gross leverage at 6x or below, FFO fixed charge
     cover at above 1.5x, combined with market share gains and
     improvements in FCF generation and operating profitability,
     all on a sustained basis

Future developments that, individually or collectively, would
lead to an affirmation of the IDR at 'B-' include:

-- A more aggressive financial policy leading to FFO adjusted
    gross leverage above 6.0x and FFO fixed charge cover of
    around 1.5x on a sustained basis

-- Weaker than expected sales growth and profit margin expansion
    along with volatile FCF profile

LIQUIDITY

Fitch expects liquidity to remain adequate over the next four
years. It should be supported by readily available cash on
balance sheet, which Fitch estimates at EUR163 million at end-
FY16 (FY15: EUR16.5 million), and at its lowest at end-FY17
(EUR144 million) following to the acquisition of the Yvrai
franchises stores. Liquidity should also be supported by the
group's FCF generation capacity together with the EUR30 million
revolving credit facility.



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G E R M A N Y
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* GERMANY: Business Insolvencies Down 8.9% to 1,882 in April
------------------------------------------------------------
According to Radiocor News, the statistics office Destatis said
German local courts reported 1,882 business insolvencies in
April, down 8.9% compared with April 2015.

According to Radiocor News, based on insolvency requests, the
prospective debts owed to creditors amounted to approximately
EUR6.9 billion in April.  A year earlier, they totalled EUR2.1
billion, Radiocor News notes.

"Despite the decline in business insolvencies, debts increased
substantially.  This was due to the fact that the courts in April
2016 registered more insolvencies of economically important
businesses than in April 2015," Radiocor News quotes Destatis as
saying.



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CVC CORDATUS: S&P Assigns Prelim. B- Rating to Class F Notes
------------------------------------------------------------
S&P Global Ratings has assigned its preliminary credit ratings to
CVC Cordatus Loan Fund VII Designated Activity Company's
floating- and fixed-rate class A-1, A-2 B-1, B-2, C, D, E, and F
notes.  At closing, CVC Cordatus Loan Fund VII will also issue an
unrated subordinated class of notes.

CVC Cordatus Loan Fund VII is a European cash flow collateralized
loan obligation (CLO), securitizing a portfolio of primarily
senior secured euro-denominated leveraged loans and bonds issued
by European borrowers.  CVC Credit Partners Group Ltd. is the
collateral manager.

Under the transaction documents, the rated notes will pay
quarterly interest unless there is a frequency switch event.
Following this, the notes will permanently switch to semiannual
payment.  The portfolio's reinvestment period will end
approximately four years after closing.

S&P's preliminary ratings reflect its assessment of the
preliminary collateral portfolio's credit quality, which has a
weighted-average 'B' rating.  S&P considers that the portfolio at
closing will be well-diversified, primarily comprising broadly
syndicated speculative-grade senior secured term loans and senior
secured bonds.  Therefore, S&P has conducted its credit and cash
flow analysis by applying its criteria for corporate cash flow
collateralized debt obligations.

In S&P's cash flow analysis, it used the EUR440 million target
par amount, a weighted-average spread (4.25%), a weighted-average
coupon (5.50%), and weighted-average recovery rates at each
rating level.  S&P applied various cash flow stress scenarios,
using four different default patterns, in conjunction with
different interest rate stress scenarios for each liability
rating category.

Bank of New York Mellon, London branch is the bank account
provider and custodian.  At closing, S&P anticipates that the
documented downgrade remedies will be in line with its current
counterparty criteria.

Following the application of S&P's nonsovereign ratings criteria,
it considers that the transaction's exposure to country risk is
sufficiently mitigated at the assigned preliminary rating levels.
This is because the concentration of the pool comprising assets
in countries rated lower than 'A-' is limited to 10% of the
aggregate collateral balance.

At closing, S&P considers that the issuer will be bankruptcy
remote, in accordance with its European legal criteria.

Following S&P's analysis of the credit, cash flow, counterparty,
operational, and legal risks, S&P believes its preliminary
ratings are commensurate with the available credit enhancement
for each class of notes.

RATINGS LIST

Preliminary Ratings Assigned

CVC Cordatus Loan Fund VII Designated Activity Company
EUR454.20 Million Secured Floating-Rate And Fixed-Rate Notes
(Including Subordinated Notes)

Class               Prelim.            Prelim.
                    rating              amount
                                      (mil. EUR)
A-1                 AAA (sf)            248.40
A-2                 AAA (sf)             20.00
B-1                 AA (sf)              37.80
B-2                 AA (sf)              15.00
C                   A (sf)               23.70
D                   BBB (sf)             20.30
E                   BB (sf)              30.80
F                   B- (sf)              13.20
Sub                 NR                   45.00

NR--Not rated.


ZOO ABS IV: Fitch Hikes Class P Debt Rating to 'Bsf'
----------------------------------------------------
Fitch Ratings has upgraded Zoo ABS IV Plc's class B, C, D, E and
P notes and affirmed the remaining notes, as follows:

Class A-1A (ISIN XS0298493072): affirmed at 'BBBsf'; Outlook
Stable

Class A-1B (ISIN XS0298495523): affirmed at 'BBBsf'; Outlook
Stable

Class A-1R (no ISIN): affirmed at 'BBBsf'; Outlook Stable

Class A-2 (ISIN XS0298496505): affirmed at 'BBsf'; Outlook Stable

Class B (ISIN XS0298496927): upgraded to 'BBsf' from 'B+sf';
Outlook Stable

Class C (ISIN XS0298497495): upgraded to 'Bsf' from 'B-sf';
Outlook Stable

Class D (ISIN XS0298498386): upgraded to 'Bsf' from 'CCCsf';
Outlook Stable

Class E (ISIN XS0298498972): upgraded to 'Bsf' from 'CCCsf';
Outlook Stable

Class P (ISIN XS0298626564): upgraded to 'Bsf' from 'B-sf';
Outlook Stable

Zoo ABS IV Plc is a cash arbitrage securitization of structured
finance assets.

KEY RATING DRIVERS

The upgrade of the class B, C, D and E notes reflects an increase
in credit enhancement over the last 12 months. The transaction
has deleveraged significantly, distributing EUR73.5 million of
principal proceeds to noteholders over the last year. The
deleveraging was largely driven by prepayments in the UK RMBS
sector. The transaction also features a turbo principal payment
in the interest waterfall, where 20% of the excess spread is
diverted to pay down the principal of the class E notes.

A sequential redemption event occurred in May 2016, following the
reduction of the aggregate principal balance below 75% of the
target par amount. As a consequence, the transaction has switched
to sequential amortization from pro rata amortization.

The transaction can reinvest unscheduled principal proceeds as
long as the coverage and portfolio profile tests are passing or,
if failing, maintained or improved after the reinvestment. Over
the past 12 months, the manager did not actively reinvest and
only EUR10 million of unscheduled principal proceeds were used to
purchase additional assets. Fitch understood that the manager has
no further intention of reinvesting.

The portfolio quality has been stable. The weighted average
ratings for the current portfolio are 'BBB-'/'BB+'. The current
defaults are stable and represent approximatively EUR2.5 million.
The portfolio is heavily concentrated in RMBS, which represents
approximatively 78% of the performing portfolio. Exposure to
countries with a Country Ceiling below 'AAA' makes up 55.4% of
the performing portfolio, primarily composed of Italy, Spain and
Portugal.

The class P combination notes' ratings reflect the ratings of the
class C component classes.

RATING SENSITIVITIES

A 25% increase in the asset default probability or a 25%
reduction in expected recovery rates would not lead to a
downgrade for the rated notes.

DUE DILIGENCE USAGE

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

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pool and the transaction. There were no findings that were
material to this analysis.

The majority of the underlying assets have ratings or credit
opinions from Fitch and/or other Nationally Recognised
Statistical Rating Organisations and/or European Securities and
Markets Authority registered rating agencies. Fitch has relied on
the practices of the relevant Fitch groups and/or other rating
agencies to assess the asset portfolio information.

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



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MONTE DEI PASCHI: Italy Mulls Capital Injection, Talks Underway
---------------------------------------------------------------
Sonia Sirletti, John Follain and Chiara Albanese at Bloomberg
News report that Italy is looking to pump capital into Banca
Monte dei Paschi di Siena SpA in what may become the lender's
third bailout since the financial crisis.

According to Bloomberg, a person with knowledge of the plan said
the government would invoke a European Union rule allowing
temporary state aid if regulatory stress tests uncover a
shortfall.  The person said talks are underway with European
regulators to win approval, Bloomberg notes.

An Italian bank rescue would evoke the taxpayer bailouts of the
financial crisis as well as test the bailout rules, which took
full effect this year, forcing bondholders and shareholders to
share losses, Bloomberg states.  The present crisis deepened
after Britain voted to leave the European Union at the end of
June, triggering a fresh share selloff in some of the region's
weakest lenders amid concern over a worsening economic outlook,
Bloomberg relays.

"A capital injection of size would certainly enable the group to
add provisions and help add confidence," Bloomberg quotes Paul
Fenner-Leitao, a credit analyst at Societe Generale SA in London,
as saying.

A European Commission official reiterated that the EU's executive
body is in contact with Italian authorities, and said a number of
solutions can be put in place, Bloomberg relates.

The plan for Paschi includes selling new convertible bonds to the
government and injecting at least EUR3 billion through Italy's
bank rescue fund Atlante, Bloomberg says, citing newspaper La
Stampa.

Chief Executive Officer Fabrizio Viola is struggling to restore
the bank's finances after accounting irregularities under
previous managers prompted two taxpayer-funded bailouts,
Bloomberg discloses.   Monte Paschi built up a pile of soured
loans over the last decade as Italy's longest recession since
World War II left businesses and households struggling to repay
debt, Bloomberg recounts.

                      About Monte dei Paschi

Banca Monte dei Paschi di Siena SpA -- http://www.mps.it/-- is
an Italy-based company engaged in the banking sector.  It
provides traditional banking services, asset management and
private banking, including life insurance, pension funds and
investment trusts.  In addition, it offers investment banking,
including project finance, merchant banking and financial
advisory services.  The Company comprises more than 3,000
branches, and a structure of channels of distribution.  Banca
Monte dei Paschi di Siena Group has subsidiaries located
throughout Italy, Europe, America, Asia and North Africa.  It has
numerous subsidiaries, including Mps Sim SpA, MPS Capital
Services Banca per le Imprese SpA, MPS Banca Personale SpA, Banca
Toscana SpA, Monte Paschi Ireland Ltd. and Banca MP Belgio SpA.



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


HALYK BANK: S&P Affirms 'BB/B' CCRs, Outlook Revised to Negative
----------------------------------------------------------------
S&P Global Ratings revised its outlook on Halyk Savings Bank of
Kazakhstan to negative from stable and affirmed its 'BB/B' long-
and short-term counterparty credit ratings on the bank.

S&P also lowered its Kazakhstan national scale rating on Halyk
Bank to 'kzA' from 'kzA+'.

The downgrade stems from Halyk Bank's inability to substantially
clean up its legacy problem loan portfolio, which was generated
before 2008.  S&P previously expected that the bank would achieve
better results than the sector average in problem asset recovery.

Halyk Bank's non-performing loans (NPLs; loans more than 90 days
overdue) increased to 11.7% (under national accounting standards)
as of June 1, 2016, from 9.2% as of year-end 2015.  This compares
unfavorably with the system average of 8.2% as of June 1, 2016,
as well as the NPL levels of other large Kazakh banks, which
ranged between 5.6% and 9.7% as of the same date.  According to
International Financial Reporting Standards, Halyk Bank's NPLs
had increased to 12.9% as of March 31, 2016, from 10.3% at year-
end 2015.

Also, Halyk Bank's loan loss provisioning coverage reduced to 99%
as of March 31, 2016, from 118.5% at year-end 2015.  S&P
nevertheless expects that the bank can maintain the loan loss
coverage ratio at least at the current level.  Therefore, even
though S&P still assess Halyk Bank's risk position as adequate,
in contrast to S&P's assessment of moderate risk for the majority
of rated Kazakh banks, it is becoming increasingly weaker.

"We expect Halyk Bank's asset quality to deteriorate further in
the next 12-18 months, in line with the Kazakh banking system,
due to sharply reduced economic growth prospects and substantial
tenge devaluation in 2015.  We therefore expect to see a further
increase in Halyk Bank's NPLs to about 12%-14% of the loan book
over that period, which is what we forecast for the system.  This
is especially due to foreign currency loans, which accounted for
36% of Halyk Bank's loan book as of March 31, 2016.  In addition,
the bank had about 7% of restructured loans, which were not fully
covered by provisions and might require additional provisioning
if they do not perform as expected," S&P said.

S&P expects the worsened macroeconomic environment will put
pressure on Halyk Bank's profitability in the next 12-18 months.
S&P forecasts the bank's cost of risk will increase to about 1.5%
in 2016-2017 from 0.6% in 2015.  Also, S&P projects that the
return on core assets will decrease to below 2% in 2016-2017 from
2.7% in 2015 and 4.1% in 2014, due to pressure on the net
interest margin from high funding costs.

The negative outlook on Halyk Bank indicates the possibility of a
downgrade if pressure on the bank's asset quality and
profitability increases over the next 12-18 months, owing to
weaker economic growth prospects and the negative impact of
substantial tenge devaluation.

S&P could lower the ratings over that period if it do not see
material improvements in Halyk Bank's asset quality and
profitability from current levels, with NPLs staying higher than
10% or cost of risk increasing above 2%.

S&P could revise the outlook to stable in the next 12-18 months
if Halyk Bank reduced its NPLs to below the system average, while
maintaining adequate loan loss provision coverage, thereby
supporting S&P's assessment of its risk position as adequate,
provided that other rating factors do not deteriorate.



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


4FINANCE HOLDING: S&P Puts 'B+' CCR on CreditWatch Developing
-------------------------------------------------------------
S&P Global Ratings placed on CreditWatch with developing
implications its 'B+' long-term corporate credit rating on
Luxembourg-based 4finance Holding S.A. and its 'B+' issue rating
on the company's senior unsecured notes.

The CreditWatch placement follows the announcement on June 1,
2016, that 4finance has received approval from the Bulgarian
National Bank to proceed with its acquisition of TBI Bank EAD.
The purchase of the bank from the current parent company, Kardan
N.V., is subject to various conditions, including approval from
the Bulgarian Commission for Protection of Competition.

The announced purchase price for TBI Bank is approximately
EUR75 million, subject to certain adjustments for audited
results. TBI Bank provides loans primarily to consumers based in
Bulgaria and Romania, and it had assets of approximately EUR279
million as of March 31, 2016.  The bank is primarily funded
through customer deposits, which represented 91% of the funding
base at year-end 2015.  TBI Bank reported annual profits of about
EUR16.6 million in 2015, with net interest income representing
nearly 65% of operating revenue.  As of year-end 2015, TBI Bank
stated that its total capital ratio was 19.5%, which is above the
Bulgaria National Bank's capital requirement, based on Basel and
EU Directive guidelines.

4finance reported assets of about EUR454 million as of March 31,
2016, meaning that the regulated TBI Bank would likely represent
approximately 40% of the consolidated group balance sheet.  S&P
needs further details on the transaction before it can assess the
full impact on the ratings, given that the acquired bank will
represent a meaningful part of the group.  Its weight is
particularly relevant when assessing the fungibility of cash flow
within the group.  S&P also expects additional clarity on the
applicable regulatory framework for the enlarged 4finance group,
which S&P believes could present the group with both
opportunities and risks.

The CreditWatch reflects S&P's view that it could raise, affirm,
or lower its ratings on 4finance, depending on the details and
structure of the transaction.

S&P will continue to monitor developments related to the
announced acquisition, including required regulatory approvals,
in addition to any announcements regarding the transaction's
structure.  S&P expects to resolve this CreditWatch in the second
half of this year, given that the transaction will likely close
in August.



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


AURORUS BV 2016: Fitch Assigns 'B(EXP)sf' Rating to Class E Notes
-----------------------------------------------------------------
Fitch Ratings has assigned Aurorus 2016 B.V.'s asset-backed notes
the following expected ratings:

Class A notes, due July 2070: "AA-(EXP)sf"; Outlook Stable
Class B notes, due July 2070: "A(EXP)sf"; Outlook Stable
Class C notes, due July 2070: "BBB(EXP)sf"; Outlook Stable
Class D notes, due July 2070: "BB(EXP)sf"; Outlook Stable
Class E notes, due July 2070: "B(EXP)sf"; Outlook Stable
Class F notes, due July 2070: not rated
Class G notes, due July 2070: not rated
Subordinated notes: not rated

The transaction is a securitization of Dutch unsecured consumer
loans originated by Qander Consumer Finance B.V. (Qander) with a
two-year revolving period. The portfolio consists of mainly
revolving credit lines (either standalone or linked to a credit
card), allowing the borrowers to make additional drawings up to
their respective maximum loan credit limit. A minimum 9.5% of
fixed-rate, fixed-term amortizing loans is also included. The
preliminary pool as of May 31, 2016 totals EUR286 million and
comprises 87,295 loans.

The expected ratings are based on Fitch's assessment of Qander's
origination and servicing procedures, the agency's expectations
of future asset performance, the available credit enhancement and
the transaction's legal structure. The final ratings are subject
to the receipt of final documents conforming to information
already received.

KEY RATING DRIVERS

Majority of Unsecured Revolving Credits

Up to 90.5% of the portfolio consists of general purpose,
floating-rate, unsecured revolving credits (including standalone
revolving loans and Visa cards). The typical monthly minimum
payment is equal to a percentage of the approved credit limit or
of the current outstanding balance. Obligatory amortization only
starts when the borrower reaches the age of 65, whereby no
further drawdown is allowed. The overall payment rate results in
a slower amortization profile than for trusts in the UK.

Extended Amortization Risk Mitigated

Amortization for revolving credits could slow significantly under
a rapidly rising interest rate environment, as the monthly
installment would not normally increase with interest rates,
while the interest portion would. The transaction employs a
fixed-for-floating swap, so that swap receipts could make up for
a shortfall in principal collections (in a combined waterfall).
In Fitch's view, this risk is adequately mitigated by the swap
under its interest rate stresses.

Heterogeneous Asset Performance

For its analysis, Fitch has divided the pool into revolving
credits (with Visa cards as a sub-product type) and fixed-rate
amortizing loans, due to the different risk profiles. In line
with its applicable criteria, Fitch applied a dynamic charge-off
steady state assumption of 6% a year to the revolving credits and
a base case lifetime default expectation of 6% for fixed-rate
amortizing loans.

Originator Recently Relaunched Business

Following its acquisition by Chenavari Investment Managers LLP,
Qander restarted business activities in 2015 after a two-year
lending hiatus. The transaction securitizes Qander's whole loan
book with very few exclusions. Fitch considers the available
historical data adequate to perform its asset analysis.

Servicing Continuity Risk Mitigated

The servicer is unrated. Fitch considers the back-up servicing
arrangement provided by Vesting Finance B.V, coupled with a cash
reserve providing liquidity, to adequately mitigate the risk of a
potential disruption in collections.

Variable Funding Notes

The transaction is structured to issue dynamically-sized senior
and subordinated notes to provide funding flexibility. Mezzanine
notes are fixed. During the revolving period, a variable amount
of senior notes (up to a maximum commitment of EUR240m) can be
issued monthly to purchase additional receivables, while the
balance of the subordinated notes fluctuates accordingly, to
maintain a minimum credit enhancement. An adjusted borrowing base
mechanism is used to calculate the amount of notes issuance on a
monthly basis.

RATING SENSITIVITIES

Expected impact upon the note rating of increased charge-
offs/defaults (Class A/B/C/D/E):
Original Rating: AA-sf/Asf/BBBsf/BBsf/Bsf
Increase base case charge-off/default rate by 10%: A+sf/A-sf/BBB-
sf/BB-sf/NR
Increase base case charge-off/default rate by 25%:
Asf/BBB+sf/BB+sf/B+sf/NR
Increase base case charge-off/default rate by 50%: BBB+sf/BBB-
sf/BB-sf/Bsf/NR

Expected impact upon the note rating of decreased recoveries
(Class A/B/C/D/E):
Original Rating: AA-sf/Asf/BBBsf/BBsf/Bsf
Reduce base case recovery by 10%: A+sf/A-sf/BBB-sf/BB-sf/NR
Reduce base case recovery by 25%: A+sf/A-sf/BBB-sf/B+sf.NR
Reduce base case recovery by 50%: Asf/BBB+sf/BB+sf/Bsf/NR

Expected impact on the note ratings of decreased yield (Class
A/B/C/D/E):
Current ratings: AA-sf/Asf/BBBsf/BBsf/Bsf
Reduce base case yield by 10%: A+sf/A-sf/BBB-sf/BB-sf/NR
Reduce base case yield by 25%: A+sf/BBB+sf/BB+sf/B+sf/NR
Reduce base case yield by 50%: Asf/BBB+sf/BBsf/NR/NR

Expected impact on the note rating of increased charge-
offs/defaults and reduced recoveries (Class A/B/C/D/E)
Current ratings: AA-sf/Asf/BBBsf/BBsf/Bsf
Increase base case charge-off/default rate by 10%; reduce base
case recovery by 10%:
A+sf/BBB+sf/BBB-sf/B+sf/NR
Increase base case charge-off/default rate by 25%; reduce base
case recovery by 25%:
A-sf/BBBsf/BBsf/Bsf/NR
Increase base case charge-off/default rate by 50%; reduce base
case recovery by 50%:
BBB-sf/BBsf/B+sf/NR/NR

DUE DILIGENCE USAGE
Fitch received a third party assessment conducted on the asset
portfolio information prior to transaction announcement.

DATA ADEQUACY
Fitch conducted a review of a small targeted sample of Qander's
origination files and found the information contained in the
reviewed files to be adequately consistent with the originator's
policies and practices and the other information provided to the
agency about the asset portfolio. 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.

The transaction is the first Dutch unsecured consumer loan
securitization Fitch rated. Part of the portfolio (revolving
credits) demonstrates complex loan features, although the product
type is fairly standard and has a long history in the
Netherlands. The purpose of the securitization is to finance
Qander's business activity. Fitch follows its Procedure for
Reviewing Unique or Complex Rating Proposals during the rating
process.

CRITERIA VARIATION
In this transaction, Fitch has applied its Global Credit Card ABS
Rating Criteria to the revolving loans, due to the nature of the
underlying receivables. In addition, the agency was provided with
historical data showing substantial and stable level of
recoveries. To derive the haircuts applied to recoveries Fitch
used the factors outlined in its Global Consumer ABS criteria.
This constitutes a variation from the Global Credit Card ABS
Rating Criteria.

A proprietary cash flow model is associated with Fitch's Global
Credit Card ABS Rating Criteria. However, the liability structure
of the transaction differs substantially from the typical
structures encountered in credit card trusts, as it resembles
that of a standard consumer ABS transaction; Fitch therefore
modelled the asset cash flows in its model as per its Global
Credit Card ABS Rating Criteria and applied the results in its
proprietary consumer ABS cash flow model to better reflect the
liability structure of the transaction. Recoveries for revolving
loans are also modelled in the consumer ABS cash flow model. This
approach introduced a variation from the Global Credit Card ABS
Rating Criteria.

Fitch floored the stressed MPR at the contractual minimum
repayment level for the portfolio, thereby compressing the MPR
stress at 'AAAsf' to 24.1%, which is below the "Lower" end of the
criteria stress range (35% at 'AAAsf'). This constitutes a
variation from the Global Credit Card ABS Rating Criteria.

Fitch modified the rising interest rate stresses for the
revolving loans to reflect the Dutch usury regulation, which
represents a variation from the Criteria for Interest Rate
Stresses in Structured Finance Transactions and Covered Bonds.
Without the variation, the transaction will benefit from a
quicker interest rate increase on the assets.


DUTCH MORTGAGE XII: Moody's Says Swap Amendment No Rating Impact
----------------------------------------------------------------
Moody's Investors Service announced that an amendment to the swap
agreement would not, in and of itself and as of this time, result
in the downgrade of the notes rating issued by Dutch Mortgage
Portfolio Loans XII B.V. (DMPL 12).

Pursuant to the amendment, the swap transfer trigger and
collateral trigger will track Deutsche Bank's Counterparty Risk
Assessment ("CR Assessment"). The collateral trigger level
remains unchanged at the loss of A3 and transfer trigger level
remains at the loss of Baa1.

Moody's notes that, prior to the amendment, the collateral
trigger was breached as Deutsche Bank's Senior Unsecured Rating
is currently Baa2 below the collateral trigger level A3.
Following the execution of the amended swap documents, Deutsche
Bank will not be required to post collateral as its CR Assessment
is currently at A3(cr) which satisfies the collateral trigger
requirements.

In assessing the impact of the changes, Moody's considered the
fact that only the senior Class A is covered by the swap and took
into account the current level of the notes ratings and the
rating of Deutsche Bank AG, London Branch as Swap Counterparty
applying the cross-sector rating methodology "Approach to
Assessing Swap Counterparties in Structured Finance Cash Flow
Transactions" published in March 2015.

Moody's has determined that the amendment, in and of itself and
at this time, will not result in the downgrade or withdrawal of
the notes rating currently assigned to Dutch Mortgage Portfolio
Loans XII B.V. (DMPL 12). However, Moody's opinion addresses only
the credit impact associated with the proposed amendment, and
Moody's is not expressing any opinion as to whether the amendment
has, or could have, other non-credit related effects that may
have a detrimental impact on the interests of note holders and/or
counterparties.


E-MAC NL 2007-I: S&P Lowers Rating on Class D Notes to 'B-'
-----------------------------------------------------------
S&P Global Ratings affirmed its credit ratings on E-MAC Program
B.V. Compartment NL 2007-I's class A2, B, C, and E notes.  At the
same time, S&P has lowered its rating on the class D notes.

Upon publishing S&P's updated criteria for Dutch residential
mortgage-backed securities (Dutch RMBS criteria), it placed those
ratings that could potentially be affected "under criteria
observation".

Following S&P's review of this transaction, its ratings that
could potentially be affected by the criteria are no longer under
criteria observation.

The rating actions follow S&P's credit and cash flow analysis of
the transaction and the application of its Dutch RMBS criteria.

In S&P's opinion, the current outlook for the Dutch residential
mortgage and real estate market is benign.  The generally
favorable economic conditions support S&P's view that the
performance of Dutch RMBS collateral pools will remain stable in
2016.  Given S&P's outlook on the Dutch economy, it considers the
base-case expected losses of 0.5% at the 'B' rating level for an
archetypical pool of Dutch mortgage loans, and the other
assumptions in S&P's Dutch RMBS criteria, to be appropriate.

The portfolio's collateral performance has been stable and in
line with S&P's expectations since its October 2014 review.
Total arrears in the pool have increased marginally to 2.21% from
1.97% at S&P's October 2014 review and remain slightly above its
Dutch RMBS index level of 0.96%.  Cumulative losses remain low,
at 0.83%.

This transaction has a fully funded reserve fund, which is
amortizing, and provides 0.45% of credit enhancement.  As a
result of principal repayments, available credit enhancement for
all classes of notes has increased since S&P's previous review.

After applying S&P's Dutch RMBS criteria to this transaction, its
credit analysis results show an increase in the weighted-average
foreclosure frequency (WAFF) at all levels due to S&P's increased
base foreclose frequency levels under its updated criteria.  At
the same time, S&P has also seen an increase in the weighted-
average loss severity (WALS) for each rating level, compared with
those at S&P's previous review, due to its updated market value
decline adjustments under its updated criteria.

Rating     WAFF      WALS
level       (%)       (%)
AAA       20.09     47.15
AA        14.00     43.78
A         10.56     37.19
BBB        7.24     33.55
BB         4.18     30.95
B          3.15     28.51

The overall effect is an increase in the required credit coverage
for all rating levels.

S&P's revised cash flow analysis is based on the application of
its Dutch RMBS criteria and now assumes an additional late
recession timing at the start of year three, which is affecting
S&P's cash flow results.

Taking this into account, S&P considers the available credit
enhancement for the class A2, B, and C notes to be sufficient to
withstand the expected loss at the currently assigned ratings.
S&P has therefore affirmed its ratings on the class A2, B, and C
notes.

At the same time, it is S&P's view that the available credit
enhancement for the class D notes is not commensurate with the
expected losses at its currently assigned rating level.  S&P has
therefore lowered to 'B- (sf)' from 'B (sf)' its rating on the
class D notes.

The class E notes are not supported by any subordination or the
reserve fund.  The full redemption of the class E notes relies on
the full release of the reserve fund at the end of the
transaction, which will follow the full redemption of the class A
to D notes.  S&P previously reported that it considers that there
is a one-in-two chance of a default on the class E notes in seven
of the E-MAC NL transactions.  S&P's view on this is unchanged,
and S&P has therefore affirmed its 'CCC (sf)' rating on the class
E notes.

S&P also considers credit stability in its analysis.  To reflect
moderate stress conditions, S&P adjusted its WAFF assumptions by
assuming additional arrears of 8% for one- and three-year
horizons.  This did not result in S&P's rating deteriorating
below the maximum projected deterioration that it would associate
with each relevant rating level, as outlined in S&P's credit
stability
criteria.

E-MAC NL 2007-I is a Dutch RMBS transaction, which closed in
March 2007, and securitizes first-ranking mortgage loans
originated by CMIS Nederland (previously GMAC-RFC Nederland).

RATINGS LIST

Class              Rating

          To                 From

E-MAC Program B.V. Compartment NL 2007-I
EUR602.7 Million Residential Mortgage-Backed Floating-Rate and
Excess-Spread Backed Floating-Rate Notes

Ratings Affirmed

A2        A (sf)
B         A- (sf)
C         BB+ (sf)
E         CCC (sf)

Rating Lowered

D         B- (sf)            B (sf)


E-MAC NL 2008-IV: S&P Lowers Rating on Class D Notes to 'B-'
------------------------------------------------------------
S&P Global Ratings raised its credit ratings on E-MAC Program II
B.V. Compartment NL 2008-IV's class A, B, and C notes.  At the
same time, S&P has lowered its rating on the class D notes.

Upon publishing S&P's updated criteria for Dutch residential
mortgage-backed securities (Dutch RMBS criteria), S&P placed
those ratings that could potentially be affected "under criteria
observation".

Following S&P's review of this transaction, its ratings that
could potentially be affected by the criteria are no longer under
criteria observation.

The rating actions follow S&P's credit and cash flow analysis of
the transaction and the application of its Dutch RMBS criteria.

In S&P's opinion, the current outlook for the Dutch residential
mortgage and real estate market is benign.  The generally
favorable economic conditions support S&P's view that the
performance of Dutch RMBS collateral pools will remain stable in
2016.  Given S&P's outlook on the Dutch economy, it considers the
base-case expected losses of 0.5% at the 'B' rating level for an
archetypical pool of Dutch mortgage loans, and the other
assumptions in S&P's Dutch RMBS criteria, to be appropriate.

The portfolio's collateral performance has been stable and in
line with S&P's expectations since its July 2014 review.  Total
arrears in the pool have decreased to 2.18% from 2.76% at S&P's
July 2014 review and remain slightly above its Dutch RMBS index
level of 0.96%.  Cumulative losses remain low, at 1.03%.

This transaction has a nonamortizing reserve fund, which is not
currently at its target level.  It currently provides 2.57% of
credit enhancement.  As a result of principal repayments,
available credit enhancement for all classes of notes has
increased since S&P's previous review.

After applying S&P's Dutch RMBS criteria to this transaction, its
credit analysis results show an increase in the weighted-average
foreclosure frequency (WAFF) at all levels due to S&P's increased
base foreclose frequency levels under its updated criteria.  At
the same time, S&P has also seen an increase in the weighted-
average loss severity (WALS) for each rating level, compared with
those at S&P's previous review, due to its updated market value
decline adjustments under its updated criteria.

Rating     WAFF      WALS
level       (%)       (%)
AAA       21.39     47.54
AA        14.92     44.23
A         11.39     37.82
BBB        7.87     34.30
BB         4.63     31.76
B          3.55     29.38

The overall effect is an increase in the required credit coverage
for all rating levels.

S&P's revised cash flow analysis is based on the application of
its Dutch RMBS criteria and now assumes an additional late
recession timing at the start of year three, which is affecting
our cash flow results.

As a result of the amortization of the collateral pool, S&P
considers the increased available credit enhancement for the
class A, B, and C notes to be sufficient to withstand the
expected loss at higher rating levels than those currently
assigned.  However, under S&P's current counterparty criteria,
its ratings on the class A, B, and C notes are constrained by
S&P's long-term issuer credit rating on the swap provider, The
Royal Bank of Scotland PLC (BBB+/Positive/A-2).  The swap
documentation reflects S&P's current counterparty criteria, but
the transaction's documented collateral posting requirements
limit S&P's maximum potential rating in this transaction at 'A+
(sf)'.  S&P has therefore raised to 'A+ (sf)' from 'A (sf)' its
ratings on the class A, B, and C notes.

At the same time, it is S&P's view that the available credit
enhancement for the class D notes is not commensurate with the
expected losses at its currently assigned rating level.  S&P has
therefore lowered to 'B- (sf)' from 'B+ (sf)' its rating on the
class D notes.

S&P also considers credit stability in its analysis.  To reflect
moderate stress conditions, S&P adjusted its WAFF assumptions by
assuming additional arrears of 8% for one- and three-year
horizons.  This did not result in S&P's rating deteriorating
below the maximum projected deterioration that it would associate
with each relevant rating level, as outlined in S&P's credit
stability criteria.

E-MAC NL 2008-IV is a Dutch RMBS transaction, which closed in
April 2007, and securitizes first-ranking mortgage loans
originated by CMIS Nederland (previously GMAC-RFC Nederland).

RATINGS LIST

Class              Rating
          To                 From

E-MAC Program II B.V. Compartment NL 2008-IV
EUR263.2 Million Residential Mortgage-Backed Floating-Rate Notes
And Excess-Spread-Backed Floating-Rate Notes

Ratings Raised

A         A+ (sf)           A (sf)
B         A+ (sf)           A (sf)
C         A+ (sf)           A (sf)

Rating Lowered

D         B- (sf)            B+ (sf)


ENDEMOL SHINE: S&P Affirms 'B-' CCR, Outlook Negative
-----------------------------------------------------
S&P Global Ratings said that it affirmed its 'B-' long-term
corporate credit rating on MediArena Acquisition B.V., the parent
of Netherlands-based Endemol Holdings B.V. and Endemol Shine
Group (ESG).  The outlook is negative.

S&P also affirmed its issue ratings on the group's senior secured
first-lien term debt due 2021 at 'B-', with a recovery rating of
'4' (30%-50%; lower half of the range) in the event of a payment
default.  S&P affirmed its issue rating on $457 million second-
lien term loan maturing in 2022 at 'CCC'.  The recovery rating on
this instrument is unchanged at '6', indicating S&P's expectation
of negligible (0%-10%) recovery in the event of a payment
default.

All the ratings were removed from CreditWatch with negative
implications, where they were placed on April 19, 2016.

"In our view, the group's credit quality remains weak, with
pressure on cash flow generation.  However, some improvement is
expected in 2016 due to the new receivable securitization
facility in place to fund the investments in net working capital
to support growth in scripted programming and distribution
business. Exceptional costs on restructuring and reorganization
of the merged companies are also going to be much lower compared
to last year, which should improve S&P Global Ratings-adjusted
EBITDA and leverage ratios," S&P said.

S&P anticipates that the group's EBITDA margins will be about
10%-11% for the next three years, and the EBITDA-to-interest
ratio will remain below 1.5x.  Similarly, S&P expects higher
interest costs resulting from a higher debt burden and volatile
working capital to hamper free operating cash flow (FOCF)
further.  S&P do not expect ESG to return to positive cash
generation for at least the next two years.

S&P's assessment of ESG's business risk profile reflects the
group's strong positions in its key markets: the U.K., the U.S.,
Southern Europe, and The Netherlands.  Its global presence in
more than 30 countries and its diverse library of more than 3,000
television programs provide further support to the business risk
assessment.  At the same time, S&P anticipates that the adjusted
EBITDA margin will remain depressed at less than 11% in 2016-
2018, compared with 8.6% in 2015 and 13.7% in 2014.  This is
because of the lower profitability of Shine's operations compared
with Endemol's and the group's ongoing investment in the low-
margin growth projects that underpin Endemol Shine Group's
competitive advantage in the medium-to-long term.

The group operates in the highly competitive and fragmented film
and television programming industry, and is exposed to the
inherent volatility of viewers' tastes and cyclical spending on
advertising.  ESG partly mitigates such risks by generating a
high proportion of recurring revenues from highly successful
shows.  The reason S&P believes in the recurring nature of such
revenues is that both Endemol and Shine have successfully
produced follow-up series for their most successful shows or sold
them to other countries in the past, and are likely to continue
doing so.

S&P does not expect ESG to benefit from extraordinary support
from either of its shareholders should the group fall into
financial distress.

S&P expects ESG's adjusted EBITDA will grow by about 5%-7% per
year over the 2016-2018 forecast period, primarily thanks to
growth in the television shows and series production market.

S&P assesses ESG's liquidity as less than adequate.  This
assessment mainly signifies that we consider that the group has
diminished flexibility to accommodate low-probability events that
could have a high impact on liquidity without refinancing.  In
addition, S&P considers that its elevated leverage could limit
ESG's ability to raise additional funds from the bank or credit
markets.

At the same time, S&P estimates that liquidity sources will
exceed funding needs by more than 1.2x in the next 12 months.

The term facilities do not contain any financial maintenance
covenants.  However, the springing net first-lien leverage
covenant in the RCF, applicable when the RCF is drawn at 30% or
more of the EUR125 million commitment, could restrict the
company's liquidity if leverage gets close to the level at
closing.  Under S&P's base-case scenario, during the testing
periods in 2016, the covenant headroom could be below 15%.

The negative outlook reflects a one-in-three chance that S&P
could lower the ratings on ESG if the company's liquidity
weakened further or S&P viewed its capital structure as
unsustainable.  This could occur if ESG failed to post growth in
revenues or improve its profitability leading to EBITDA growth
insufficient to reduce leverage sustainably, or adjusted EBITDA
to interest coverage remaining at less than 1.5x.  Inability to
curtail significantly negative cash outflow could be another
driver for a negative rating action.

S&P could revise the outlook back to stable if ESG achieves
operating and credit metrics at least in line with S&P's base
case.  This would support sustained deleveraging, including
EBITDA to interest coverage of at least 1.5x, alongside
improving, albeit negative, cash flow generation, and an upward
revision of liquidity to adequate from less than adequate.


X5 RETAIL: Moody's Changes Outlook on Ba3 CFR to Positive
---------------------------------------------------------
Moody's Investors Service has changed to positive from stable the
outlook on the Ba3 corporate family rating (CFR) and the Ba3-PD
probability of default rating (PDR) of X5 Retail Group N.V. (X5),
Russia's second-largest retailer. At the same time, Moody's
affirmed all the ratings.

"We have changed the outlook to positive on X5's Ba3 ratings to
reflect its proven ability to grow sales, maintain margins and
improve its financial profile in the face of difficult economic
conditions and falling consumer demand," says Ekaterina Lipatova,
an Assistant Vice President -- Analyst at Moody's.

The main factors driving the positive outlook on Ba3 rating are
the company's:

-- Resilience to industry cycles proved by healthy operating
    results with market-leading revenue growth

-- Gradually improving financial profile

RATINGS RATIONALE

The rating action primarily reflects X5's industry-leading
operating performance despite the challenging consumer
environment in Russia with shrinking consumption since 2014 and
slowing food price inflation starting in the second half of 2015.

The company reported robust revenue growth of 27.6% and 26.8% as
well as healthy like-for-like sales growth of 13.7% and 7.8% in
2015 and Q1 2016, respectively. It has also been able to preserve
stable profitability with adjusted EBITDA margin at 11.8% in 2015
(11.9% in 2014), despite greater investment in prices and a
substantial one-off bonus to the management.

Taking into account the still attractive market fundamentals for
large players, Moody's expects that X5 will be able to sustain
sound operating results going forward. This expectation is
supported by X5's focus on the defensive economy-class grocery
segment and its leading market position, which benefits from
economies of scale and significant bargaining power.

Despite the material step-up in capex to take advantage of fresh
growth opportunities in the market, X5's healthy EBITDA growth
and stable margins are gradually improving its financial leverage
towards Moody's guidelines for the Ba2 rating. X5's adjusted
debt/EBITDA improved from 3.8x in 2014 to 3.6x in 2015 and 3.5x
in Q1 2016 and Moody's expects that in 2016-17 it will further
reduce to below 3.5x.

The company's strengthening financial profile is further
supported by its track record of adherence to a prudent financial
and development strategy. X5's interest coverage metrics will,
however, remain somewhat weak, albeit improving, as X5 manages to
reduce interest rates by negotiating with banks and placing
cheaper domestic bonds. In particular, in 2016 X5 successfully
placed its two bond issues at a coupon rates below the Central
Bank's key interest rate.

At the same time, the company's rating continues to reflect its
exposure to Russia and its political, economic and legal risks,
further exacerbated by the currently challenging economic and
geopolitical situation. In particular, although Moody's expects
that X5 will be able to weather the negative impact of changes to
the trade law, there still remains a degree of uncertainty over
the exact impact of the tighter retail regulation on X5's
operations.

RATIONALE FOR THE POSITIVE OUTLOOK

The positive outlook reflects the potential for the upgrade of
X5's rating over the next 12-18 months based on Moody's
expectation that the company will continue to exhibit a stable
business profile with healthy operating results and gradually
improving financial metrics.

WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on the rating could build up if X5 improves its
financial profile, such that (1) adjusted total debt/EBITDA goes
down to below 3.5x and adjusted RCF/net debt trends towards 20%
and above, all on a sustained basis; and (2) the company
maintains a solid liquidity profile.

Downward pressure on the rating could result if X5's leverage
measured as adjusted total debt/EBITDA trends towards 4.5x and
adjusted RCF/net debt towards 10%, all on a sustained basis. Any
deterioration in the company's liquidity, including access to its
bank facilities and covenants compliance, could also put downward
pressure on the rating.

Domiciled in the Netherlands, X5 Retail Group N.V. is one of the
leading multi-format Russian retailers, operating a chain of food
retail stores under the brand names "Pyaterochka", "Perekrestok"
and "Karusel". In 12 months ended March 31, 2016, X5 generated
around RUB858 billion of revenues and RUB98 billion of adjusted
EBITDA.



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


ALROSA PJSC: Moody's Ba1 Rating Unaffected by Stake Privatization
-----------------------------------------------------------------
Moody's Investors Service said that the Ba1 corporate family
rating (negative outlook) of ALROSA PJSC, the world's largest
diamond producer, is unaffected by the upcoming privatization of
a 10.9% stake in the company by the Russian government, as
announced on July 6, 2016.

ALROSA's rating will not be affected by the reduction of Russia's
stake in the company to 33% from 43.9%, because (1) this will not
change Moody's assumptions of default dependence and, most
importantly, probability of government support under the
government-related issuer (GRI) methodology; and (2) ALROSA's
baseline credit assessment (BCA), which is the measure of the
company's standalone credit strength, remains at ba1 (i.e., at
the same level as the rating).

Currently the company's main shareholders are the Russian
Federation (43.9%), the Sakha Republic (25%) and its municipal
districts (8%), while the remaining 23.1% is in free float,
including shares on the Moscow Exchange. Russia's government
intends to privatize a 10.9% stake in ALROSA, with the proceeds
to be transferred to the state budget. Moody's understands that
the government aims to complete the privatzation by mid-July
2016.

As ALROSA's principal shareholder is the government of the
Russian Federation, Moody's applies its GRI rating methodology in
assigning the company's rating. ALROSA's Ba1 corporate family
rating reflects a combination of (1) its BCA of ba1; (2) the
Russian Federation's Ba1 local currency rating; (3) Moody's
assumption of moderate default dependence between ALROSA and the
government; and (4) Moody's assumption of moderate probability of
the government support to the company in the event of financial
distress.

On April 27, 2016, Moody's upgraded ALROSA's rating to Ba1 from
Ba2 and raised its BCA to ba1 from ba3, reflecting the fact that
its financial metrics have remained strong versus global peers
and Moody's expectation that metrics will remain robust, owing to
the weak rouble and the company's (1) status as a major producer
and exporter of diamonds; (2) 29% share in the global diamond
output; (3) low-cost reserve base; (4) technical mining
expertise; (5) solid liquidity; and (6) conservative financial
policy, which the rating agency expects not to change as a result
of the privatization.

Moody's believes that ALROSA remains strategically important for
Russia's government, which will likely continue to shape the
company's strategy and appoint its supervisory board members and
senior management.

The negative outlook on ALROSA's rating is in line with the
negative outlook on Russia's sovereign rating. If the sovereign
rating were to be downgraded, that could lead to a lowering of
Russia's foreign-currency bond country ceiling, which would
prompt a downgrade of ALROSA's rating.

ALROSA mines, markets and distributes diamonds. The company
produced 38.3 million carats (mct) in 2015, giving it a world-
leading 29% market share of diamond production as per the
company's estimates. ALROSA operates five mining complexes and a
number of alluvial placers in the Republic of Sakha (Yakutia) in
Eastern Siberia, one mine in Arkhangelsk and has a 32.8% interest
in Catoca Mining Company Ltd in Angola.


BANK FOR INNOVATION: S&P Cuts ICR to CCC+ Then Withdraws Rating
---------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
the Bank for Innovation and Development (BID) to 'CCC+' from
'B-'.  S&P also affirmed its 'C' short-term rating on BID.

Accordingly, S&P also lowered its Russia national scale rating on
BID to 'ruBB-' from 'ruBBB-'.

S&P has subsequently withdrawn the ratings at the bank's request.
At the time of withdrawal, the outlook on the counterparty credit
ratings was negative.

The downgrade reflects S&P's concerns that BID's capitalization
and liquidity positions have weakened and may continue to do so
over the coming 12 months, due to the need to increase credit
costs above S&P's forecast levels and unexpected deposits
outflows.

S&P revised its assessment of BID's capital and earnings to weak
from moderate, given that the bank's risk-adjusted capital (RAC)
ratio has dropped below S&P's expectations to 4.65% as of Dec.
31, 2015, from 5.99% as of June 30, 2015.  The cushion in S&P's
expected RAC ratio for BID has eroded to a level that cannot
support S&P's previous capital and earnings assessment.  S&P
expects its base-case RAC ratio is likely to slip below 5% over
the next 12 months due to the need to substantially increase
credit costs while shareholders have limited capacity to inject
fresh capital into the bank.  This will require the bank to
further deleverage assets to maintain regulatory capital ratios
above the minimum requirement.  S&P understands that according to
the prescriptions of the Central Bank of Russia (CBR), BID's
credit costs for the first quarter of 2016 were Russian ruble
(RUB) 60 million (about $0.9 million), under Russian generally
accepted accounting principles (GAAP), or about 9% of the bank's
common equity, which lead to net losses of RUB41 million.  S&P
understands that the bank's credit costs for the second quarter
could potentially rise to 16% of its common equity.  S&P also
notes that BID breached regulatory capital ratios in January and
February of 2016.

S&P also revised downward its liquidity assessment to moderate
from adequate, following the outflow of corporate deposits by 21%
and individual deposits by 33% for January through May, this
year, according to Russian GAAP.  While corporate deposits showed
a slight recovery in terms of pace of growth in April-May 2016,
retail deposits' negative trends persisted.  S&P understands the
CBR imposed limitations on BID's capacity to increase the total
volume of retail deposits in January 2016.  As of June 1, 2016,
cash on hand constituted 22% of the bank's assets and covered 67%
of total retail deposits.

In S&P's view, BID is currently vulnerable and dependent upon
favorable business, financial, and economic conditions to meet
its financial commitments.  The issuer's financial commitments
appear to be unsustainable in the long term, although the issuer
may not face a near term (within 12 months) credit or payment
crisis.  In S&P's base-case scenario, the bank will be able to
honor its obligations at least within the next 12 months, unless
it experiences extraordinary liquidity stress.  Consequently, the
bank meets S&P's definition of a 'CCC+' rating.

The negative outlook at the time of the withdrawal reflected
S&P's concerns that the bank's recently pressurized loss-
absorption capacity could weaken its business stability.  S&P
also has concerns regarding the bank's depositor base, which in
S&P's view is confidence sensitive.


GAZPROMBANK JSC: S&P Affirms 'BB+/B' Counterparty Ratings
---------------------------------------------------------
S&P Global Ratings affirmed its 'BB+/B' long- and short-term
counterparty ratings on Russia-based Gazprombank JSC and its core
subsidiaries, Gazprombank (Switzerland) Ltd. and Bank GPB
International S.A.  The outlook on all three entities is
negative.

At the same time, S&P affirmed the 'ruAA+' Russia national scale
rating on the three entities.

The affirmation reflects S&P's opinion that Gazprombank will be
able to cushion the impact on its credit standing of recently
increased credit losses, on the back of weak economic conditions
in Russia.  S&P considers government support, evidenced by
multiple hybrid capital injections in the past quarters, is
critical to stabilize the bank's solvency of the bank, given its
weak capacity to generate capital organically.

S&P considers Gazprombank's business position to be strong.  S&P
takes into account the bank's sound foothold as the third-largest
bank in Russia in terms of assets and its strong franchise,
particularly in corporate banking, where the bank owns about 9%
of systemwide corporate lending and benefits from established
relationships with a number of large Russian companies.  The bank
had total assets of Russian ruble (RUB) 5.2 trillion (about $77
billion) on March 31, 2016.  These factors underline the bank's
high systemic importance but are offset by the sizable single-
name concentrations in its loan portfolio and its vulnerable
profitability on the back of the deteriorating operating
environment.

S&P's assessment of Gazprombank's weak capital and earnings
position is the main negative rating factor.  It reflects modest
levels of capitalization in a context of increased economic risks
in Russia and deteriorated earnings capacity.  The bank's risk-
adjusted capital (RAC) ratio at year-end 2015 stood at 3.4%
before adjustments for diversification, and S&P expects the RAC
ratio will remain within the 3.0%-3.5% range over the next 12-18
months. S&P however believes that government support would be
forthcoming in case of any further deterioration of solvency
metrics.

The depressed economic environment in Russia and high
concentrations in the bank's loan book resulted in higher credit
costs and, in turn, a weaker overall reported financial
performance in 2015, with net losses of RUB48 billion and credit
costs of 4.6% of the bank's average gross loan portfolio.  S&P
assumes that credit costs will be even lower in 2016, given that
the current level of provisions significantly exceeds problem
loans.  Following a 45 basis-point drop in 2015, Gazprombank's
net interest margin (NIM) reached 2.8% in the first quarter of
2016 due to a reduction of funding costs, resulting in net profit
of RUB9.8 billion for the same time period.  S&P believes the
bank will manage to maintain NIM at this level during 2016-2017.
Gazprombank's financial results are supported by contributions
from several associated companies.  The largest contributions
come from Venezuelan oil extracting company Petrozamora S.A.
(RUB2.7 billion for 2015 and first-quarter 2016).  Alongside the
bank's income from Russian insurance company Sogaz (RUB5.3
billion for 2015 and first-quarter 2016), these contributions
comprised about 16% of the bank's operating income in 2015.  S&P
expects the bank will be profitable in 2016.

In S&P's view, the bank's ability to internally generate capital
continues to constrain its credit quality.  S&P do not believe
that earnings retention alone will sufficiently boost
capitalization.  In addition, S&P believes that the high level of
investments in noncore assets, notably rights for audio-visual
products (about 20% of total adjusted capital as of Dec. 31,
2015), tie up capital and limit the bank's financial flexibility
considerably.  At the same time, S&P recognizes the Russian
government's strong demonstration of support toward the bank, and
S&P expects the government will directly or indirectly support
capital-building at Gazprombank to ensure that the bank maintains
an adequate competitive position in the market.

"In our view, Gazprombank's overall risk position is adequate.
The bank's track record in underwriting credit, as measured by
nonperforming loans (NPLs; defined as impaired loans with
repayment overdue by over 90 days) to total loans and annual loss
provisions to loans, is historically better than the Russian
banking system average.  This metric moderately deteriorated in
2015 to 2.0% of gross loans from 1.1% at year-end 2014, with a 4x
provision coverage ratio.  This was better than the figures
reported by Gazprombank's peers, especially those that also have
strong retail lending operations.  However, since we believe that
distressed restructuring could make up an additional 8%-10% of
the bank's loans, such provisioning coverage is not excessive, in
S&P's view.

S&P's assessment of the bank's average funding position reflects
a diversified funding base.  The bank's stable funding ratio has
historically been slightly above 100%, and the loan-to-deposit
ratio has steadily stood at around 100% for several years, which
compares well with that of many Russian peers.  S&P's assessment
of Gazprombank's adequate liquidity reflects the bank's sound
liquidity management practices and adequate liquidity indicators.
S&P do not expect any marked deterioration of the bank's
liquidity position in the next 12 months.  As long as Western
sanctions against large Russian state-related banks remain in
place, Gazprombank will have limited ability to refinance its
external debt abroad and will have to rely predominantly on
domestic funding sources.  As of June 30, 2016, Gazprombank had
the equivalent of about $7.7 billion in external wholesale
funding, or about 11% of total liabilities.  These liabilities
include about $1.3 billion maturing in 2016, and $1.2 billion in
2017.  In S&P's view, these liabilities are manageable and
unlikely to place material stress on the bank's liquidity
position.

Although the government does not own and therefore does not
control the bank directly, we consider Gazprombank to be a
government-related entity (GRE) with a high likelihood of timely
and sufficient extraordinary government support.  S&P bases this
assessment on Gazprombank's very important role for the Russian
government and its strong link with Russia through ownership by
Gazprom and other related entities.  According to S&P's GRE
rating approach, it incorporates two notches of uplift into our
long-term rating on Gazprombank to reflect the high likelihood of
government support.

Because S&P classifies Gazprombank (Switzerland) Ltd. and Bank
GPB International S.A. as core subsidiaries of Gazprombank, S&P
equalizes the ratings on these entities with those on its parent.
The core status reflects the subsidiaries' close integration with
the parent, including full ownership, and the parent's commitment
to providing ongoing and extraordinary support if needed.

The negative outlook mirrors that on Russia, reflecting S&P's
view that the government's capacity to support the bank may
reduce if the sovereign's own financial resources were to
diminish.  It also reflects the strain on Gazprombank's risk
position and capital due to vulnerable asset quality and
difficulties to generate capital organically.  S&P would consider
lowering the ratings if it observed that the bank's portfolio
quality had worsened more than S&P expects for the banking sector
as a whole, resulting in S&P's RAC ratio falling below 3%.  S&P
could also lower the ratings on Gazprombank if it lowered the
sovereign credit ratings on Russia.

S&P could revise the outlook to stable if S&P revised the outlook
on Russia to stable and saw a pronounced strengthening of the
bank's capital alongside lower-than-expected losses.


RENAISSANCE CREDIT: S&P Affirms 'B-' Counterparty Credit Ratings
----------------------------------------------------------------
S&P Global Ratings affirmed its long-term foreign and local
currency counterparty credit ratings on Russia-based Commercial
Bank Renaissance Credit LLC (RenCredit) at 'B-', and its short-
term rating at 'C'.  The outlook remains negative.

S&P also affirmed its Russia national scale rating on RenCredit
at 'ruBBB-'.

RenCredit remains loss making after two years of negative
financial performance.  The bank's business model remains
predominantly focused on high-risk consumer lending, which S&P do
not see as sustainable given the deteriorated macroeconomic
environment of Russia. The bank's shareholder provided it with an
additional capital injection in early 2016, which was critical to
enabling the bank to maintain regulatory capital adequacy ratios
above the minimum requirements.

Although the bank reported losses in the first quarter of 2016,
S&P observed some improvements in asset quality and
profitability. RenCredit tightened its underwriting standards and
limited new disbursements in 2015 to what the bank viewed as the
best-quality segments.  It also somewhat increased the average
loan amounts and tenors.  In S&P's view, this has resulted in
some improvement in the bank's financial performance in 2016,
especially by reducing its provisioning needs for loans issued in
2015.

That said, S&P still considers RenCredit's business model, which
exclusively focuses on unsecured retail lending in Russia, as
high risk and potentially unsustainable in the current
macroeconomic environment.  Consumers' disposable income remains
depressed.

The ratings on RenCredit continue to reflect S&P's 'bb-' anchor
for a bank operating primarily in Russia and the bank's moderate
business position, weak capital and earnings, weak risk position,
average funding, and adequate liquidity, as S&P's criteria define
these terms.  The stand-alone credit profile (SACP) is at 'ccc+'.
However, S&P continues to apply a one-notch positive adjustment
to the SACP, making the final rating 'B-', to reflect S&P's view
that the bank does not currently meet S&P's definition of an
entity rated 'CCC+'.  In S&P's view, the negative impact of a
prolonged period of loss making is counterbalanced by the regular
capital support provided by the shareholder.

RenCredit is majority-owned by the ONEXIM group, whose ultimate
beneficiary is Russian businessman and politician Mikhail
Prokhorov.  The ONEXIM group is one of Russia's largest
investment funds.

The ONEXIM group provided RenCredit with capital support of
Russian ruble (RUB) 1.279 billion in the first three months of
the year.  The shareholder also provided capital support to the
bank of RUB8.5 billion and RUB10 billion in 2015 and 2014,
respectively.  S&P understands that ONEXIM is committed to
providing an additional injection in 2016 to help RenCredit
maintain a statutory capital ratio of between 10% and 11% in
2016, and beyond if necessary.  So far the bank's track record is
positive; it had a regulatory capital adequacy ratio of 10.5% as
of May 1, 2016.

The negative outlook on RenCredit balances the supportive stance
of its shareholder against our concerns regarding the
sustainability of the bank's business model focused on retail
banking in the weak macroeconomic environment in Russia.  The
negative outlook also reflects S&P's expectation that the bank's
asset quality could gradually improve over the next 12-18 months,
and it could see some growth in its net interest margin,
resulting in better operating performance than in 2015.  That
said, S&P still expects the bank to make a loss in 2016.  S&P
expects the shareholder to provide additional capital support to
the bank if needed, but S&P's current forecast does not include
any additional capital injections until at least the end of 2016.

S&P would consider lowering the rating on RenCredit if S&P sees
that the shareholder's strategy toward the bank has changed or
the shareholder is not willing or not able to provide capital
support sufficient to compensate for any potential deterioration
in capitalization and S&P sees that the bank's compliance with
regulatory capital adequacy ratios might be at risk.

S&P considers the possibility of a positive rating action to be
remote in the current environment.  However, S&P could consider
revising the outlook to stable if it sees that the bank
consistently generates capital internally in 2016 and operates
without the umbrella of its cash-rich owner.


* RUSSIA: Number of Insolvent Companies Unchanged in June 2016
--------------------------------------------------------------
ROS reports that the number of Russian companies that became
insolvent remains almost unchanged, with 1,112 companies declared
bankrupt in June compared to 1,097 and 1,020 entities in April
and May, respectively.

In Q2 2016, the total number of insolvent companies dropped 17%,
but this figure is still higher than the 2013 pre-crisis level,
ROS notes.

According to ROS, Alexei Rybalka, an expert from the Center for
Macroeconomic Analysis and Short-term Forecasting, said some
reasons behind the lower number of insolvent companies, include:
the Russian economy's improved resistance to oil price
fluctuations, rising economic activity index, as well as reduced
inflation risks and the CBR's key rate, which dropped from 11% to
10.5%.



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


SAS AB: S&P Raises Corporate Credit Rating to 'B', Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings raised its long-term corporate credit rating
on Sweden-based airline operator SAS AB to 'B' from 'B-'.  The
outlook is stable.

The upgrade follows a period of improving credit metrics for SAS
and S&P's expectation that the company will be able to maintain
its financial risk profile at this level going forward.  S&P now
thinks that SAS will be able to maintain a ratio of funds from
operations (FFO) to debt of around 15% in the coming years, which
S&P considers gives it sufficient headroom within the 'B' rating
to mitigate the risk of increasing competition and continued
volatile fuel costs.

S&P still considers that SAS' business model faces challenges due
to its participation in the price-competitive, cyclical, and
capital-intensive airline industry, and its exposure to volatile
fuel costs, where increases can be difficult to pass through to
customers due to the competitive nature of the Scandinavian
airline market.  In addition, SAS is exposed to fierce
competition in its home market from Norwegian Air Shuttle, which
has a lower unit cost and has ambitious expansion plans in the
coming years. S&P also thinks that SAS suffers from weak revenue
diversification compared with peers, which have multiple business
lines to provide some stability over the economic cycle.

"In our view, SAS's strategy of focusing on frequent travelers
makes sense, but the company must continue to cut costs to ensure
competitiveness.  SAS has managed to reduce its cost base in
recent years by simplifying its fleet, reducing labor costs,
increasing use of outsourcing, and increasing efficiencies.  This
has improved profitability and heightened SAS' ability to tackle
adverse market conditions.  Although the cost performance has
recently weakened, we think that the company's cost-cutting plan
up until 2018 is reasonable and that it will be able to balance
cost cutting against service quality improvements.  While lower
fuel costs resulted in improving performance in the 2015
financial year we think that this effect will be largely passed
on to customers in 2016 in the form of lower ticket prices.  We
also notice that SAS remains exposed to geopolitical risks as
well as reputational risks occurring from the recent pilot
strikes in Sweden which can affect air travel and ticket sales,"
S&P noted.

"We have revised up our view of SAS's financial risk profile to
aggressive from highly leveraged.  Apart from still-high adjusted
debt levels, we view its highly volatile earnings and cash flow
generation as a constraint.  As of October 2015, we estimate SAS'
adjusted debt at Swedish krona (SEK) 31.1 billion, which includes
reported debt of SEK9.6 billion, SEK17.9 billion of operating
leases, SEK134 million of an equity portion of the convertible
debt, as well as the SEK3.5 billion of preference shares.  We
treat the preference shares as debt as we do not see these as a
permanent part of the capital structure.  We do not deduct any
cash from SAS' debt due to its volatile earnings and cash flow
pattern.  These adjustments resulted in FFO to debt and debt to
EBITDA of 14.5% and 4.7x, respectively.  We expect these ratios
to improve slightly in 2016 and 2017," S&P said.

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

   -- Continued strong economic growth in Sweden in 2016 and 2017
      (GDP growth of 3.5% and 2.9%), while Danish growth will be
      slower (1.8% and 2.0%) and growth in Norway will be 0.3%
      and 1.2% due negative effects stemming from the lower oil
      price. S&P thinks that the positive economic growth rates
      will enable further market growth in Scandinavia as S&P
      typically sees a strong relationship between GDP growth
      rates and air travel.  That said, S&P thinks that
      increasing uncertainty in Europe following the Brexit
      referendum in June could also dampen economic activity in
      the Scandinavian countries.

   -- SAS' capacity, as measured by available seat kilometers
      (ASK), will increase by about 10% in 2016, as guided by
      management, and about 5% in 2017 (which is at the higher
      end of the long-term growth trend of 4%-5%).  This largely
      reflects the expansion of SAS' long-haul operations and
      enhanced productivity levels, as well as an improved route
      network.  Significantly lower unit revenue, as measured by
      passenger revenue per available seat kilometers (PASK), due
      to increasing share of long-haul flights.

   -- Prices to remain under pressure as lower fuel costs are
      passed to customers in the form of lower ticket prices,
      causing competitive pressure to spike.  S&P expects the
      yield (ticket price per passenger kilometer) to decrease by
      around 10% in financial year 2016 and to fall further in
      2017.

   -- Oil prices will be $40 per barrel in 2016 and $45 per
      barrel in 2017.

   -- Unit costs excluding fuel to fall by 6%-8% in financial
      year 2016 and fall further in 2017 as cost savings programs
      are implemented.

   -- Net investments of about SEK2 billion in 2016 and around
      the same amount in the coming years.

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

   -- Funds from operations to debt of around 15% for financial
      years 2016 and 2017, compared with 14.5% in 2015.

   -- Debt to EBITDA of 4.6x in 2016 and 4.5x in 2017, compared
      with 4.7x in 2015.

   -- FFO cash interest coverage of above 7.0x, compared with
      7.0x in 2015.

S&P applies its negative comparable ratings analysis modifier to
take into account that SAS' business risk profile and financial
risk profile are at the lower end of the range for each
assessment.  As a result, the corporate credit rating of 'B' is
one notch lower than the 'b+' anchor.

The stable outlook reflects S&P's expectation that SAS will be
able to maintain positive earnings before taxes and that this
will enable the company to maintain credit metrics at around the
current levels.  S&P expects SAS to continue to be exposed to
earnings volatility stemming from volatile fuel costs and a
fiercely competitive environment, but that the company will
continue to work toward its strategy of focusing on frequent
travelers while lowering its unit costs.

S&P could consider an upgrade if SAS is likely to improve its
financial risk profile to such an extent that it would have ample
headroom within the aggressive financial risk profile.  S&P would
view a ratio of FFO to debt of at least 20% as commensurate with
a higher rating.  S&P thinks such a scenario is highly unlikely
in the coming 12 months due to SAS' capacity expansion, which
will increase adjusted debt, combined with the current price
pressure in the market.

S&P could lower the rating if SAS's operating performance
deteriorated significantly from the current levels, for example,
if S&P expects the company to report negative earnings for 2016
or 2017, and this, in turn, would lead to deteriorating credit
metrics.  S&P would view a ratio of FFO to debt of less than 10%
as commensurate with a downgrade, if S&P do not expect the ratio
to return to a higher level in the near term.



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


AUSTIN REED: Collapse to Impact Unsecured Creditors
---------------------------------------------------
Ben Martin at The Telegraph reports that the collapse of Austin
Reed will inflict huge losses on the retailer's unsecured
creditors, who will be left to share just GBP600,000 from the
failed company.

The fashion retailer collapsed in April and appointed Alix
Partners to handle its administration, The Telegraph recounts.
Austin Reed owes its unsecured creditors GBP30.24 million but
only around 2p in the pound is expected to be recovered, The
Telegraph relays, citing documents filed by the administrators
with Companies House.

Wells Fargo, The Telegraph says, is expected to have its GBP7.24
million of debts with Austin Reed fully repaid.  Alteri
Investors, which focuses on distressed retailers and took control
of the business, is owed GBP18.24 million and is expected to
"suffer a shortfall", The Telegraph discloses.

The documents showed sales continued to fall after the company
was forced into a company voluntary arrangement (CVA) last year,
The Telegraph notes.

Austin Reed is a Thirsk-based fashion retailer.


G4S: To Sell ATM Business to IBM to Cut Debts
---------------------------------------------
Rhiannon Bury at The Telegraph reports that G4S has agreed a deal
to sell its ATM service business to technology giant IBM as it
offloads parts of the company to shore up its finances.

According to The Telegraph, the deal for G4S's UK engineering
business is essentially a tie-up between IBM and G4S's wider cash
solutions department, which provides secure cash transfer in
vans.

Some of G4S's engineers and support staff will move over to IBM,
although G4S will maintain a presence servicing the cash
machines, The Telegraph discloses.  However, IBM will own the
business, The Telegraph notes.

G4S said in March that it would sell more businesses over the
next two years to claw back some of the losses it has made on
contracts which have proved more costly than expected, The
Telegraph recounts.  It said government deals have cost the firm
GBP265 million since the end of 2013, The Telegraph relays.

The problem has been compounded by the fact that G4S had borrowed
heavily to buy companies to provide services, meaning it is now
struggling to repay its debts, The Telegraph states.  It cannot
exit contracts early without a financial penalty, according to
The Telegraph.

The company, The Telegraph says, faces a debt repayment of EUR600
million (GBP469 million) in May 2017, along with a further GBP136
million connected to a US private placement in the same year.

G4S is a security firm.


IGAS: Faces Covenant Breach Risk, Fund Buys Quarter of Bonds
------------------------------------------------------------
Jillian Ambrose at The Telegraph reports that IGas is on alert
for a possible hostile takeover after a mystery fund snapped up
over a quarter of its bonds to put it within 6% of a controlling
interest.

According to The Telegraph, IGas's covert buyer used the Nordic
bonds arranger Pareto to secure 27.4% of its US$165 million
(GBP127 million) corporate bonds at 75c on the dollar.  The
purchase falls just short of the 33.3% blocking stake which would
effectively hand control of the company's debt to the holder, The
Telegraph notes.

IGas has warned investors that it is in danger of breaching
certain debt covenants in the second half of the year, despite
embarking on an aggressive campaign to shore up its balance sheet
after the oil price rout left the company with net debt of more
than US$93 million at year-end, The Telegraph relates.

IGas is a shale developer.


JERROLD HOLDINGS: S&P Affirms BB- Rating, Outlook Revised to Neg
----------------------------------------------------------------
S&P Global Ratings said that it has revised its outlook on non-
operating holding company (NOHC) Jerrold Holdings Ltd. (which
trades as "Together") to negative from stable.  S&P affirmed the
long-term counterparty credit rating at 'BB-'.

The outlook revision reflects the growing risk of adverse
economic developments and economic uncertainty arising from the
recent Brexit vote, as a result of which S&P now sees a negative
trend for economic risk in the U.K. banking sector.  This is
applicable to Together, given its lending profile.

S&P believes that the U.K. economy is no longer in an
expansionary phase and is now entering a correction phase.  S&P
expects the Brexit vote to reduce consumer confidence and the
demand for credit in the near term.  S&P believes that this and
the potential reduced overseas demand for U.K. property will
affect house prices.  Nevertheless, S&P do not expect significant
losses in the housing sector given the much-improved underwriting
standards since the financial crisis, the still low -- and
declining -- interest rates, and low unemployment.

In S&P's opinion, the Brexit vote is a seminal event that will
lead to a less predictable, stable, and effective policy
framework in the U.K.  The Brexit result could lead to a
deterioration of the U.K.'s economic performance, including its
large financial services sector, which is a major contributor to
employment and public receipts.  As such, S&P recognizes that
there is a high degree of uncertainty in the near term.

"We believe that Together's very strong capitalization as
measured by its risk-adjusted capital ratio of 22.6% as of March
31, 2016, its track record of operating through economic cycles,
and the absence of short-term debt maturities, provide it with
the ability to continue operations through an extended period of
economic and market uncertainty.  We therefore affirmed the 'BB-'
long-term counterparty credit rating on Together," S&P said.
Nevertheless, heightened political and economic risks will likely
create more challenging operating conditions.  In particular, S&P
believes this has the potential to constrain earnings in several
ways:

   -- Credit growth will likely be more subdued.  S&P believes
      there is now an increasing risk of a house price correction
      arising from the uncertainty generated by Brexit.  In S&P's
      view, households' high share of property assets increases
      the sensitivity of consumer demand to housing prices.  This
      could directly affect  Together given its focus on niche
      areas of the U.K. residential property market.

   -- Pressure on net interest margins could increase if, as
      appears likely, the Bank of England loosens its monetary
      policy further.  S&P believes Together's high net interest
      margin of just above 8% and potential asset repricing could
      absorb some of this effect, however.

   -- Credit losses will likely increase, albeit from a
      relatively low base, given that possible declines in
      collateral values and a higher level of customer defaults
      would lead to additional provisioning needs.  This risk is
      somewhat mitigated by the 52.5% weighted-average indexed
      loan-to-value (LTV) ratio of Together's total loan
      portfolio as of March 31, 2016.

S&P's view of economic risk in the U.K. could weaken--potentially
leading to a downward revision in our economic risk score to '5'
from '4'--if:

   -- A significant correction in asset prices becomes
      increasingly likely, with credit losses jumping to levels
      well above the 69 basis point long-term average, and closer
      to levels seen during the global financial crisis; or

   -- Factors such as sterling's loss of status as a reserve
      currency, or another referendum that leads to Scottish
      independence, result in significant further institutional,
      financial, and economic uncertainty.

S&P sets Together's preliminary anchor, the starting point in
deriving the ratings, three notches below the anchor for U.K.
banks.  The three-notch differential reflects Together's lack of
access to central bank funding, its lack of regulatory oversight
relative to licensed U.K. banks, and potential susceptibility to
strong competition given banks' typical lower financing costs.

The negative outlook on Together reflects the negative trend S&P
sees for economic risks following the U.K.'s decision to leave
the EU.  S&P believes that Together's creditworthiness could
weaken over the next 12-18 months if prolonged economic
uncertainty leads to a weaker operating environment.  Although
Together's strong capitalization and robust earnings track record
somewhat mitigate this risk, S&P nevertheless identifies risks to
asset prices, asset quality, and Together's revenue generation,
which may result in pressure on the current ratings.

S&P could lower the ratings on Together by one notch in the next
12-18 months if S&P revised down the starting point for its
ratings on U.K. non-bank financial institutions.  This could
occur if S&P observes a weakening in the U.K.'s economic
resilience and if Brexit-related uncertainty creates a weaker
operating environment for U.K.-focused lending institutions such
as Together.

S&P could revise the outlook back to stable if it takes a more
favorable view of the systemwide risks for domestic U.K. lending
institutions.  While less likely at this stage, S&P could also
revise the outlook back to stable if Together demonstrates
continued growth without deterioration in new lending standards
or pricing, and improved bottom-line earnings.


SANDWELL COMMERCIAL: S&P Lowers Rating on Class E Notes to CCC-
---------------------------------------------------------------
S&P Global Ratings affirmed its 'A- (sf)' and 'B- (sf)' credit
ratings on Sandwell Commercial Finance No. 1 PLC's class C and D
notes, respectively.  At the same time, S&P has lowered to
'CCC- (sf)' from 'CCC (sf)' its rating on the class E notes.

The rating actions follow its review of the underlying loans'
credit quality.  The loans are secured on 20 U.K. properties,
with the majority of the assets comprising office (24.1%) and
retail properties.  The properties are located within 10 U.K. and
Welsh regions.  Most of the properties are now located in the
South East (36.5% of market value).

The loan's portfolio balance has reduced substantially from
GBP250 million at closing in 2004 to GBP25 million.  This has
resulted from scheduled amortization payments, loans repaying at
loan maturity, and unscheduled amortization payments following
the enforcement of covenant breaches.  The weighted-average
reported loan-to-value ratio is 84.9% and the weighted-average
reported interest coverage ratio (ICR) is 4.26x.  As a result of
low interest rates, the ICR has increased from 1.78x since the
cut-off date.

S&P also understands that some previous loans (no longer in the
pool) had previously repaid at a loss.  In this transaction,
principal losses are not directly applied reverse sequentially
toward the notes' redemption, but instead accrue on a principal
deficiency ledger (PDL).  To date, the PDL associated with the
class E notes is GBP0.33 million.  This represents about 6.67% of
the class E notes' balance.

A liquidity facility is available to enable the issuer to pay
senior expenses shortfalls, which include interest (but not
principal) due or overdue on the notes.  The facility is drawable
for all issued notes, although there is a lockout for the class
C, D, and E notes if the principal deficiency sub-ledger in
respect of each of these classes is equal to or more than 50% of
the balance of the notes.

RATING RATIONALE

S&P's ratings in this transaction address the timely payment of
interest (payable quarterly in arrears) and the payment of
principal no later than the May 2039 legal final maturity date.

Although S&P considers the available credit enhancement for the
class C notes as adequate to mitigate the risk of losses from the
remaining underlying loans in higher stress scenarios, S&P has
affirmed its 'A- (sf)' rating on this class of notes for
counterparty reasons.  In this transaction, Barclays Bank PLC (A-
/Negative/A-2) is the bank account provider and guaranteed
investment contract account provider.  In accordance with S&P's
current counterparty criteria, these counterparties can support a
maximum potential rating of 'A- (sf)' on the notes in this
transaction.

S&P's analysis indicates that the available credit enhancement
for the class D notes is insufficient to mitigate the risk of
principal losses in a 'B' stress scenario.  S&P has therefore
affirmed its 'B- (sf)' rating on the class D notes.

S&P has lowered to 'CCC- (sf)' from 'CCC (sf)' its rating on the
class E notes following increased PDL amounts on this class of
notes.  In S&P's opinion, the class E notes' repayment depends on
favorable economic conditions.  As a result, they face at least a
one-in-two likelihood of default.  The downgrade of this class of
notes reflects the application of S&P's criteria.

RATINGS LIST

                    Rating
Class        To              From

Sandwell Commercial Finance No. 1 PLC
GBP250 Million Commercial Mortgage-Backed Floating-Rate Notes

Ratings Affirmed

C             A- (sf)
D             B- (sf)

Rating Lowered

E             CCC- (sf)        CCC (sf)


                            *********

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

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

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


                            *********


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

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

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

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

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

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


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