TCREUR_Public/160714.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

            Thursday, July 14, 2016, Vol. 17, No. 138



BELARUSBANK: Fitch Affirms 'B-' Long-Term Issuer Default Ratings


GTLK EUROPE: Moody's Assigns (P)Ba3 Rating to Proposed USD Notes
HACKETTS: BoyleSports Acquires Outlets From Liquidators
IRISH BANK: Liquidation Costs Total Nearly EUR180 Million


ITALY: To Set Up Second Bank Support Fund by End of July
SCHUMANN SPA: Moody's Assigns (P)B1 Rating to EUR725MM Notes
SISAL GROUP: S&P Raises CCR to 'B+', Outlook Stable


AVAST HOLDING: S&P Puts 'BB-' CCR on CreditWatch Negative
AVG TECHNOLOGIES: S&P Puts 'BB' CCR on CreditWatch Negative
DOME 2006-I: S&P Affirms B- Rating on Class D Notes


NJORD GAS: S&P Raises Rating on NOK3.798BB Sr. Bonds to 'BB+'


FCRB BANK: Moratorium on Meeting Creditors' Claims Terminated
URALKALI: Shareholder Change No Impact on Fitch's BB- Rating


BBVA CONSUMO 8: Fitch Assigns 'CCC(EXP)' Rating to Class B Debt

U N I T E D   K I N G D O M

AVANTI COMMUNICATIONS: S&P Lowers CCR to 'CCC-', Outlook Negative
RMPA SERVICES: S&P Affirms 'BB+' Rating on GBP580MM Bonds
* UK: Number of Pubs, Bars Going Bust Up 53% in 2nd Qtr. 2016



BELARUSBANK: Fitch Affirms 'B-' Long-Term Issuer Default Ratings
Fitch Ratings has affirmed Belarusbank's (BBK), Belinvestbank's
(BIB) and Development Bank of the Republic of Belarus's (DBRB)
Long-Term Issuer Default Ratings (IDRs) at 'B-' with Stable



The Long-Term IDRs, Support Ratings and Support Rating Floors are
underpinned by potential state support, in case of need, and are
dependent on the level of the sovereign rating (B-/Stable).
Support considerations take into account the banks' state
ownership (either through The State Property Committee for BBK
and BIB or the Council of Ministers in the case of DBRB) and
government control (representatives of the government sit on the
banks' supervisory boards).

Fitch also considers the banks' systemic importance (greater at
BBK with a market share of 40% by assets and 46% of retail
deposits), the policy roles of BBK and DBRB as the country's
largest providers of government program lending backed by
dedicated government funding, the track-record of support to date
and the government subsidiary liability on DBRB's bond
obligations, which, however is as yet untested.

At the same time, the ratings remain vulnerable to the
sovereign's credit profile. External liquidity remains a key
credit weakness for Belarus, as reflected in the country's low
international reserves ($US4.3billion at July 1, 2016), sizeable
sovereign debt servicing obligations in foreign currency ($US3.3
billion for 2016), a large current account deficit ($US1.5
billion at end-1Q16) and continued, albeit moderated recently,
depreciation of the Belarusian rouble (BYR) against $US (by 8% in
1H16 and by 56% in 2015).

Fitch said, "The macroeconomic outlook remains weak - we estimate
real GDP to have contracted 3.9% in 2015 and expect it to fall a
further 1% in 2016, constrained by weakness in the main trading
partners, mainly Russia (which accounted for around 40% of
Belarusian goods exports in 1Q16 and in 2015). Access to
multilateral financing is key to macroeconomic stability and we
assume that Belarus will continue to benefit from financial
support from Russia and the Eurasian Fund for Stabilisation and
Development (the latter has agreed to provide a $US2billion
stabilisation loan to Belarus to be drawn over 2016-2018)."

Fitch said, "The banks' ratings reflect the authorities' limited
financial flexibility to provide extraordinary support at all
times, in particular in foreign currency. This view considers the
three banks' sizeable external funding (a combined $US2.5 billion
at end-2015, including $US1.5 billion short-term debt maturing
during 2016) and high dollarization of domestic liabilities
($US7.4 billion), largely from customers (except for DBRB). These
FX-liabilities are large relative to the country's international
reserves, while FX-liquidity is tight at all three banks and to a
large degree (from 41% to 80% at the three banks) comprises
short-term domestic FX bonds issued by the government or central
bank. We expect the authorities to make this FX liquidity
available to banks, in case of need, to avoid defaults on
external borrowings, although nearly half of these comprise
facilities from Russian creditors and so are more likely to be
rolled over, in our view. Liquidity shortages in local currency,
if any, are likely to be covered by the central bank (BBK, BIB)
or the authorities more generally (DBRB).

"Capital injections were sizeable for both BBK and DBRB in 2015
(estimated at around 40% of end-2014 equity at BBK and 17% at
DBRB), supporting both banks' growth plans. BIB's capital
position benefitted from subordinated debt ($US55 million)
provided by the authorities in 4Q15, while the bank has been set
by the authorities for privatization. BBK has also been set by
the authorities for partial privatization (a 25% ownership stake
has been earmarked recently). However, we expect privatizations
in the Belarus banking sector to likely be a long-term project
and believe the authorities' support propensity will remain
unchanged for both BBK and BIB for the foreseeable future."


The banks' stand-alone credit profiles are strongly linked to
that of the sovereign due to the large direct exposure of the
banks to the authorities and, more generally, the public sector,
and the dependence of bank credit quality on the ability of the
authorities to support macroeconomic stability and public sector
companies. At end-2015, direct exposure (includes claims on
government and the central bank) relative to Fitch Core Capital
(FCC) was 2.4x at BBK, and 2.5x at BIB. Loans issued to public
sector corporates (including those issued under government
programs) contributed a further 4.7x FCC at BBK and 3x at BIB.

Credit risks have increased in the recessionary environment,
while borrower performance is also affected by external
pressures, generally significant leverage in the corporate
segment and loan dollarization (BBK: 61%; BIB: 68%), and the
share of hedged borrowers is limited.

Fitch said, "Credit metrics have deteriorated at both BBK and BIB
since 2014 and we expect this trend to continue through 2016 as
operating conditions remain challenging. At end-1Q16, reported
non-performing loans (NPLs, more than 90 days overdue) were
moderate at 3.5% of loans at BBK (end-2014: 1.5%), reflecting the
high share of borrowers benefitting from government support (in
the form of subsidies on interest payments or loan repayments
under state guarantee). Reported NPLs were a high 11.1% at BIB at
end-2015 (end-2014: 4.5%). These ratios are after partial balance
sheet clean-ups arranged by the authorities in 2015 through
exchange of selected NPLs for long-term FX-denominated MinFin
bonds. Transferred volumes were equal to 4.8% of end-2014 loans
at BBK and 5.3% at BIB. Reported restructured exposures were
moderate at 2% of end-2015 loans (BBK) and 3.4% (BIB)."

Regulatory capital ratios (CARs; end-1Q16: BBK: 17.9%; BIB:
14.1%) are seen as only moderate in light of the potential asset
quality deterioration. Reserve coverage of existing NPLs was 145%
at BBK at end-1Q16 but a moderate 61% at BIB at end-2015. Pre-
impairment profitability (on a cash basis) was 3.7% of average
gross loans (BBK) in 2015, although underpinned by a one-off gain
from derivatives (equal to 2.2% of average gross loans), and a
moderate 1.8% (BIB) in 2015. Bottom line results were affected by
sharply higher loan impairment charges, which accounted for
between 74% (BBK) and 103% (BIB) of pre-impairment profits in
2015. Further solvency support may be in prospect if asset
quality deteriorates sharply.

Customer funding remains the main form of funding at both banks
(over 70% of liabilities). Deposit trends have been stable
recently in both local currency and FX, limiting immediate
liquidity pressure. Liquidity management remains highly dependent
on the confidence of depositors, refinancing of external
liabilities and support from the authorities.

Fitch has not assigned a VR to DBRB due to the bank's special
status as a development institution and its close association
with the authorities.



Changes to the banks' IDRs are likely to be linked to changes in
the sovereign credit profile. The Stable Outlooks reflect already
low rating levels and Fitch's expectation of likely continued
Russian support for Belarus's external finances. A weakening of
the sovereign's credit profile could indicate a reduced ability
to support the public sector and state banks as well as a greater
risk of capital controls being introduced.


The VRs could be downgraded in case of capital erosion due to a
marked deterioration in asset quality or a significant tightening
of banks' FX liquidity.

The potential for positive rating actions on either the IDRs or
VRs is limited in the near term, given weaknesses in the economy
and external finances.

The rating actions are as follows:


Long-Term Foreign Currency IDR affirmed at 'B-'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'B'
Viability Rating affirmed at 'b-'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'B-'


Long-Term Foreign Currency IDR affirmed at 'B-'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'B'
Long-Term Local Currency IDR affirmed at 'B-'; Outlook Stable
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'B-'


GTLK EUROPE: Moody's Assigns (P)Ba3 Rating to Proposed USD Notes
Moody's Investors Service has assigned a provisional rating of
(P)Ba3 to the proposed US dollar-denominated senior unsecured
notes to be issued by GTLK Europe Limited (GTLKE), an Ireland-
based wholly-owned subsidiary of Russian State Transport Leasing
Company PJSC (STLC, Ba2 negative).  The outlook assigned to the
rating is negative.

The maturity, the size and the pricing of the notes are subject
to prevailing market conditions during placement.

The notes will be unconditionally and irrevocably guaranteed by
STLC, and the proceeds of the notes will be utilized for general
corporate purposes and repayment of existing debt.

                          RATINGS RATIONALE

The (P)Ba3 rating assigned to the proposed notes is one notch
below STLC's corporate family rating (CFR) of Ba2, which reflects
their structural subordination to STLC's substantial amount of
secured debt.  The senior unsecured notes have a lower relative
priority of claim than STLC's secured instruments on a high
percentage of the company's earning assets.

The notes issued by GTLKE are unconditionally and irrevocably
guaranteed by STLC and will rank pari passu with the other
unsecured and unsubordinated financial debt of STLC.

According to the terms and conditions of the notes, the investors
will benefit from certain covenants including a negative pledge,
restrictions on mergers and transactions with affiliates.  In
addition, STLC -- as a guarantor -- is obliged to maintain a
positive net interest margin and ratio of equity to assets at a
minimum pre-specified level of 10%.

At the end of 2015, STLC received a significant capital
contribution from the Russian government -- the sole shareholder
of the company -- which bolstered its equity to assets ratio to
almost 25% at year-end 2015 from 11% at year-end 2014.

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


The negative outlook on the ratings reflects the negative outlook
on the STLC's CFR rating, which in turn reflects the negative
outlook on the sovereign rating.


Given the negative outlook, a positive rating action is unlikely
over the next 12-18 months.  However, should STLC further reduce
its reliance on secured debt, resulting in fewer encumbered
assets and a materially higher proportion of senior unsecured
debt in its capital structure, Moody's could equalize the
company's senior unsecured rating with its corporate family
rating.  Negative pressure could be exerted on the debt rating as
a result of material deterioration in the company's stand-alone
credit profile or Moody's perception of a reduced probability of
government support for the company.

Headquartered in Moscow, Russian Federation, State Transport
Leasing Company -- the fifth-largest leasing company in Russia--
reported total assets of US$2.5 billion, equity of $623 million
under audited IFRS at end-2015.  The company is 100% controlled
by the Russian government, represented by the Ministry of


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

HACKETTS: BoyleSports Acquires Outlets From Liquidators
Aine McMahon at The Irish Times reports that Irish bookmaker
BoyleSports, has acquired a number of Hacketts outlets from the
High Court-appointed liquidators, Ken Tyrrell and Declan McDonald
of PricewaterhouseCoopers.

According to The Irish Times, the stores, which will be reopened
immediately, are at Cashel Co Tipperary, Callan Co Kilkenny,
Mountmellick Co Laois and Rathkeale Co Limerick.

Each of the four stores will be rebranded as BoyleSports outlets,
The Irish Times discloses.

As reported by the Troubled Company Reporter-Europe on June 23,
2016, The Irish Times related that Hacketts' liquidation resulted
in the loss of 35 jobs and the closure of the chain's 18 betting
shops in Dublin, Cork, Limerick and across the midlands.
Hacketts struggled with increased competition from mobile and
online and the 1% turnover tax on all wagers placed in its shops,
The Irish Times said.

Hacketts Bookmakers is a betting-shop business.

IRISH BANK: Liquidation Costs Total Nearly EUR180 Million
Ciaran Hancock at The Irish Times reports that Ireland's Minister
for Finance Michael Noonan has confirmed just under EUR180
million was spent in costs on the liquidation of Irish Bank
Resolution Corporation from February 2013 up to the end of last

In reply to a question from Sinn Fein finance spokesman Pearse
Doherty, the Minister said EUR179.56 million, net of rebates, had
been spent on work carried out by KPMG as special liquidators,
and law firms A&LGoodbody and Linklaters, The Irish Times relays.
Of this amount, EUR95.47 million related to fees for work carried
out by KPMG, EUR32.5 million to Irish firm A&L Goodbody, and
EUR18.97 million to London-based Linklaters, The Irish Times

Other professional advisers' costs amounted to EUR18 million
while other legal advisers costs were EUR14,603,000, The Irish
Times discloses.

Separately, IBRC's special liquidators -- Kieran Wallace and
Eamonn Richardson -- secured a number of rebates from advisers
worth just under EUR8 million, The Irish Times states.  This
included a rebate of EUR5 million from their own firm KPMG,
EUR2.7 million from A&L Goodbody and EUR261,000 from Linklaters,
The Irish Times notes.  According to The Irish Times, the
Minister told Mr. Doherty it was not possible to quantify the
final costs of the liquidation at this time due to the amount of
work that remains outstanding.

                    About Irish Bank Resolution

Irish Bank Resolution Corp., the liquidation vehicle for what was
once one of Ireland's largest banks, filed a Chapter 15 petition
(Bankr. D. Del. Case No. 13-12159) on Aug. 26, 2013, to protect
U.S. assets of the former Anglo Irish Bank Corp. from being
seized by creditors.  Irish Bank Resolution sought assistance
from the U.S. court in liquidating Anglo Irish Bank Corp. and
Irish Nationwide Building Society.  The two banks failed and were
merged into IBRC in July 2011.  IBRC is tasked with winding them
down and liquidating their assets.  In February, when Irish
lawmakers adopted the Irish Bank Resolution Corp., IBRC was
placed into a special liquidation in the Irish High Court to
complete liquidation and distribution of the two banks' assets.

IBRC's principal asset as of June 2012 was a loan portfolio
valued at some EUR25 billion (US$33.5 billion).  About 70 percent
of the loans were to Irish borrowers. Some 5 percent of the
portfolio was under U.S. law, according to a court filing.  Total
liabilities in June 2012 were about EUR50 billion, according
to a court filing.

Most assets in the U.S. have been sold already.  IBRC is involved
in lawsuits in the U.S.

IBRC was granted protection under Chapter 15 of the U.S.
Bankruptcy Code in December 2013.

Kieran Wallace and Eamonn Richardson of KPMG have been named the
special liquidators.


ITALY: To Set Up Second Bank Support Fund by End of July
Chiara Albanese, Chiara Vasarri, and John Follain at Bloomberg
News report that Italy is working to set up a second bank support
fund by the end of the month, opening a new front in the
country's efforts to restore confidence in its financial system,.

The goal is to have EUR2 billion (US$2.2 billion) to supplement
Atlante, two people with knowledge of the matter, as cited by
Bloomberg, said, referring to the privately backed fund for banks
that has already been tapped twice since it was created with
government help in April.  Atlante is now seeking to use its
remaining reserves to relieve Banca Monte dei Paschi di Siena SpA
of EUR10 billion in bad loans, Bloomberg relays, citing two
Italian newspapers.

According to Bloomberg, the people said officials are looking to
set up the second fund, likely to be called Atlante 2, sometime
this month.

Italy is trying to shore up a banking system saddled with bad
loans without breaching European Union rules that require
investors to share losses, Bloomberg notes.

SCHUMANN SPA: Moody's Assigns (P)B1 Rating to EUR725MM Notes
Moody's Investors Service has assigned provisional (P)B1
instrument ratings to the proposed EUR725 million dual tranche
senior secured notes split between floating rate notes due 2022
and fixed rate notes due 2023 to be issued by Schumann S.p.A.,
with a stable outlook. Schumann S.p.A. is a newly incorporated
entity, expected to be the future parent and holding company of
Sisal Group S.p.A.

At the same time, Moody's has placed all ratings of Gaming Invest, current parent and holding company of Sisal, under
review for upgrade, including its B2 corporate family rating
(CFR), B2-PD probability of default rating (PDR) and the B1
rating on the EUR275 senior secured notes issued by Sisal Group

Moody's issues provisional ratings in advance of the final sale
of securities.  Upon closing of the transaction and a conclusive
review of the final documentation, Moody's will endeavor to
assign definitive ratings.  A definitive rating may differ from a
provisional rating.


The action reflects the announcement that private equity firm CVC
Capital Partners (CVC) agreed to acquire through Schumann, the
entire share capital of Sisal Group S.p.A., from Apax Partners,
Permira and Clessidra.  CVC is expected to fund the acquisition
with approximately EUR302 million of cash equity and EUR725
million of senior secured floating and fixed rate notes due 2022
and 2023 respectively, to be issued by Schumann.  The transaction
is expected to complete in September 2016.

Should the acquisition of Sisal by Schumann and the repayment of
the outstanding debt instruments conclude as envisaged, Moody's
would expect to move the CFR from Gaming Invest to
Schumann, to reflect the new corporate and financing structure.
Moody's current expectation is also that the CFR will be upgraded
to B1 from B2, principally due to the anticipated decrease in
leverage of the business from 5.6x to 4.1x on a Moody's-adjusted
basis as at March 31, 2016, pro forma for the transaction.  The
rating on the outstanding EUR275 senior secured notes issued by
Sisal Group S.p.A. would be withdrawn upon repayment.

The ratings additionally take into account (1) Sisal's lack
geographical diversification exposing the company to the Italian
consumer discretionary spending and to an evolving regulatory and
fiscal regime; (2) the presence in mature and increasingly
competitive segments of the gambling industry with in Moody's
view limited growth potential; (3) its exposure to the risk of
not having its concessions renewed upon maturity, for example the
Super Enalotto concession due in 2018 representing approximately
10% of last twelve month to 31 March 2016 revenues and 15% of
EBITDA, as well as the risk that the terms of any new concession
may change; (4) Moody's expectation of pressure on cash flows in
2017 and 2018 due to the capex required to renew upcoming
licences (betting shops/corners and lottery concession).

However, ratings are positively supported by (1) Sisal's solid
market presence benefitting from capillary distribution network
and high brand recognition as an iconic Italian gaming company;
(2) moderately diversified business activities, ranging from
several categories of games, licenses and payment services; and
(3) long-term concession model, which protects against earnings

Sisal's liquidity position is considered adequate to meet its
seasonal needs and other requirements, although the timing and
amount required for the concession renewals remains uncertain at
this stage and may be larger than what the company anticipates.
Following the transaction, Moody's expects the company to have
approximately EUR8.6 million of cash and access to a EUR125
million super senior revolving credit facility (RCF) with no
financial maintenance covenants.  The next debt maturity will be
the revolving credit facility in 2022.

Rating Outlook

Ratings are under review for upgrade.

What Could Change the Rating -- Up

Moody's expects positive rating pressure following a satisfactory
review in conjunction with the completion of the announced
acquisition.  Positive pressure could also develop if Sisal's
operating performance substantially improves and the impact of
the 2016 budget law are visibly offset, resulting in a Moody's-
adjusted leverage metric falling sustainably below 5x, whilst
maintaining positive free cash flow, adequate liquidity and a
sustained Moody's-adjusted EBIT margin of around 13%.

What Could Change the Rating -- Down

Conversely, negative pressure would be exerted on the ratings if
Sisal is unable to contain the impact of the new regulatory and
fiscal regime.  Quantitatively, we would consider downgrading
Sisal's ratings if (1) the company's Moody's-adjusted debt/EBITDA
ratio rises above 6.5x; or (2) its Moody's-adjusted EBIT margin
falls below 6% on a sustained basis.  Failing to refinance its
debt due September 2017 well in advance would also trigger
downward rating pressure.


The principal methodology used in these ratings was Global Gaming
Industry published in June 2014.

Corporate Profile

Gaming Invest is the parent and holding company of
Italian gaming company Sisal Group S.p.A..  Operating with legal
concessions from Italy's national gaming regulator and under
license from the Bank of Italy, Sisal is one of the largest
Italian gaming and convenience payment service providers.  As of
December 2015, the company operates a network of more than 40,000
generic affiliated points of sale along with more than 4,600
branded points of sale.  Through its network, Sisal operates
amusement with prize machines (AWPs), video lottery terminals
(VLTs), sports betting and lottery games, and also offers
convenience payment services.  The distribution network consists
of newsstands, bars, tobacconists, betting shops and betting
shops-in-shops (corners), points of sale that are dedicated to
gaming machines, multifunctional gaming halls, and an online
gaming platform that only Italy-based customers can access.

For the 12-month period ending March 2016, Sisal reported
revenues of EUR788 million and EBITDA of EUR191 million.  All of
the company's earnings were generated in Italy (Baa2 stable).

SISAL GROUP: S&P Raises CCR to 'B+', Outlook Stable
S&P Global Ratings raised its corporate credit rating on Italian
gaming and payments services operator Sisal Group SpA to 'B+'
from 'B'.  The outlook is stable.

S&P raised the issue rating on Sisal's existing EUR275 million
senior secured notes up to 'B+' in line with the upgrade of the
issuer.  The recovery rating is unchanged at '3', indicating
S&P's expectation of recovery prospects in the higher half of the
50%-70% range.  S&P will withdraw the ratings on the notes on
repayment of the debt.

At the same time, S&P assigned an issue rating of 'B+' to the
proposed EUR725 million dual-tranche senior secured notes
offering.  S&P assigned a recovery rating of '3' to the notes,
indicating its expectations of recovery prospects in the higher
half of the 50%-70% range in the event of a payment default.

S&P assigned an issue rating of 'BB-' to the EUR125 million super
senior revolving credit facility (RCF).  S&P assigned a recovery
rating of '2' to the facility, indicating S&P's expectation of
recovery prospects in the higher half of the 70%-90% range in the
event of a payment default.

S&P also assigned an issuer credit rating of 'B+' with a stable
outlook to the bidding company vehicle, Schumann S.p.A., which is
also the issuer of the new notes.

The upgrade reflects S&P's expectation that private equity firm
CVC Capital Partners' acquisition of Sisal from investors Apax,
Permira, and Clessidra will materially reduce Sisal's leverage.

The acquisition, which CVC is currently in the process of
completing, will be financed with the issuance of EUR725 million
of senior secured notes split between floating rate- and fixed
rate- notes.  The acquisition will be supported by a EUR125
million super senior RCF maturing in 2022.  As part of the
transaction, CVC will invest about EUR300 million of new equity.

The new funds will be used partly to repay the existing EUR275
million senior secured notes and the totality of existing
shareholder loan instruments, and to pay relevant fees and
expenses.  The proposed refinancing of the capital structure will
result in a significant decrease in adjusted leverage.  S&P
expects adjusted leverage of 4.1x at the close of the
transaction, a significant improvement from closing leverage of
8.2x in 2015. Previously, adjusted debt included a significant
amount of shareholder loan instruments, while the new structure
will contain only common equity.

S&P continues to assess Sisal's business risk profile as fair,
reflecting its leading position in Italy as a diversified gaming
operator and payment services provider.  Despite the significant
tax increases on gaming machines, specifically the 450 basis
point increase for amusement with prizes machines, in S&P's
opinion, the current regulatory framework is more stable than it
was last year. This is mainly because the EUR500 million tax on
the industry has been repealed and a number of other more
supportive regulatory measures have been introduced.  Sisal will
be able to recuperate 90% of the higher tax impact over the next
three years by adjusting its payout down to 70% from 74%.
Another factor supporting the fair business risk assessment is
Sisal's above-average profitability and greater margin stability
compared to rated peers, which stem from the relative
predictability of its payments services business.

S&P notes, however, that there is still significant pressure on
the company's revenues as a result of higher taxes on gaming
machines.  The company will also make significant payments for
the renewal of its licenses in 2017 and 2018.  S&P expects the
company will bolster its on-balance-sheet cash to face these

Although Sisal's ratios are in the aggressive financial risk
profile category, S&P caps its financial risk profile at highly
leveraged because of its ownership by a financial sponsor, which
suggests a more aggressive financial policy.

This said, S&P applies a one-notch uplift to the ratings to
reflect the relative strength of Sisal's metrics compared to
other issuers with a highly leveraged financial risk profile.
This uplift specifically reflects our expectation that Sisal's
adjusted EBITDA interest coverage will remain above 3x following
transaction close, and adjusted leverage will be about 4x.

The stable outlook reflects S&P's expectation that Sisal's new
financial sponsor owners, CVC, will maintain adjusted leverage of
around 4x and adjusted EBITDA interest coverage above 3x over the
medium term.  The stable outlook also reflects S&P's expectation
that, despite increases in taxes on gaming machines, Sisal will
maintain stable margin performance and meaningful FOCF over this
period, following the successful relaunch of its lottery product
SuperEnalotto and the removal of the one-off EUR500 million
industry-wide Stability Law tax.  Additionally, S&P expects
liquidity will remain adequate, with sources exceeding uses by at
least 1.2x.

S&P could lower the ratings if CVC showed signs of a more
aggressive financial policy, for example if it decided to
undertake sizable debt-financed acquisitions or dividend recaps
resulting in leverage and coverage metrics materially weaker than
S&P anticipates in its base case.  Also, if S&P saw evidence of a
more prolonged declining trend in revenues and EBITDA, which
management is not able to offset with lower payout or
efficiencies, a downgrade could follow.  Finally, if Sisal's
liquidity were to significantly weaken S&P could lower the

S&P assess an upgrade as less likely in the short-to-medium term
owing to Sisal's financial sponsorship.  Any upgrade would be
contingent on CVC demonstrating a sustained track record of
deleveraging, supported by healthy free operating cash flow


AVAST HOLDING: S&P Puts 'BB-' CCR on CreditWatch Negative
S&P Global Ratings said it has placed its 'BB-' long-term
corporate credit and issue ratings on Avast Holding B.V. and
Avast Software B.V. on CreditWatch with negative implications.

The CreditWatch placement follows Avast's announcement that it
has entered into an agreement to acquire AVG Technologies for a
total consideration of $1.3 billion.  Avast is planning to fund
this transaction through committed debt financing of $1.685
billion, which S&P understands will also include an undrawn
revolving credit facility and the refinancing of the outstanding
loan at Avast of about $260 million and about $85 million net
debt at AVG.

"Therefore, we expect the pro forma S&P Global Ratings-adjusted
leverage for the combined group to peak at 4.5x-5.0x in 2016,
before accounting for any potential cost synergies of merging the
two businesses.  The pro forma group leverage is higher than our
current threshold for the 'BB-' rating at 4x, indicating the
potential for a downward revision of Avast's financial risk
profile.  However, the final outcome will largely depend on the
expected cost and capital expenditure synergies from the merger,
and how quickly they can be realized.  We estimate that the most
meaningful potential synergies can be achieved by combining the
research and development divisions, increasing automation of
AVG's processes, in-line with Avast, and restructuring corporate
functions," S&P said.

S&P will also need to assess the potential impact of the
acquisition on the combined group's business risk profile.
Despite the combined company's increased scale, S&P's assessment
could remain at weak given the challenge of monetizing mobile
users as online browsing continues to shift toward wireless
devices, and that both are focused on the niche consumer security
software segment.

S&P aims to resolve the CreditWatch within the next 90 days.  The
resolution will include S&P's review of the company's business
plan for the combined group, including the expected cost
synergies and how quickly they can materialize, potential short-
term deleveraging, and the company's long-term financial policy.

On completion of the transaction, S&P could lower the ratings to
'B+' if it lowers its assessment of Avast's financial risk
profile to aggressive if S&P thinks leverage will remain above

S&P could also affirm the ratings if it sees sustainable short-
term deleveraging to comfortably less than 4x thanks to
meaningful merger-related synergies, limited execution risks, and
solid free cash flow generation.

AVG TECHNOLOGIES: S&P Puts 'BB' CCR on CreditWatch Negative
S&P Global Ratings said it has placed its 'BB' long-term
corporate credit and issue ratings on Netherlands-based security
software company AVG Technologies N.V. on CreditWatch with
negative implications.

The CreditWatch placement follows AVG's announcement that it has
entered into an agreement to be acquired by its competitor,
Avast, for a total consideration of $1.3 billion.  Avast is
planning to fund this transaction through committed debt
financing of $1.685 billion, which S&P understands will also
include an undrawn revolving credit facility and the refinancing
of both Avast and AVG's outstanding debt.

S&P expects the pro forma S&P Global Ratings-adjusted leverage
for the combined group to peak at 4.5x-5.0x in 2016, before
accounting for any potential cost synergies of merging the two

Therefore, S&P has placed its current ratings on Avast on
CreditWatch with negative implications, reflecting a potential
downgrade to 'B+'.  S&P anticipates that AVG will be a core
subsidiary to Avast as it will be fully owned, debt will be
refinanced at the Avast level, and S&P expects both businesses to
merge their operations in order to gain the benefits of increased
scale and merger-related synergies.  As a result, S&P will most
likely cap its ratings on AVG at the level of the rating on Avast
when the transaction completes.

S&P aims to resolve the CreditWatch within the next 90 days.  The
resolution will include S&P's review of the business plan for the
combined group, including the expected cost synergies and how
quickly they can materialize, potential short-term deleveraging,
and the group's long-term financial policy.

S&P could lower its long-term corporate credit rating on AVG by
up to two notches, depending primarily on:

   -- S&P's base case for the group's combined credit metrics and
      cash flow generation, based on S&P's assessment of revenue
      growth prospects, synergy creation, and the related
      implications for the ratings on Avast; and

   -- S&P's assessment of AVG's importance to and expected
      integration within the group.

DOME 2006-I: S&P Affirms B- Rating on Class D Notes
S&P Global Ratings raised its credit ratings on Dome 2006-I
B.V.'s class A, B, and C notes.  At the same time, S&P has
affirmed 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

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

The rating actions follow S&P's credit and cash flow analysis of
the transaction and the application of its updated Dutch RMBS
criteria, as well as S&P's analysis of set-off risk as a result
of duty-of-care claims.  S&P bases its set-off risk assessment on
information provided by the note trustee in relation to the
framework agreement between DSB Bank N.V.'s insolvency
administrator, consumer organizations, and legal insurers.

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, S&P 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 collateral performance has stabilized since S&P's previous
review, with the number of loans in arrears by more than 90 days
as of May 2016 falling to 1.34% from 3.77%.

After applying S&P's Dutch RMBS criteria, its credit analysis
results show an increase in the weighted-average foreclosure
frequency (WAFF) and an increase in the weighted-average loss
severity (WALS) for each rating level compared with those at

Rating level          WAFF (%)      WALS (%)
AAA                      28.1           50.0
AA                       19.6           46.7
A                        15.1           40.4
BBB                      10.4           36.8
BB                        6.0           34.3
B                         4.6           31.8

The increase in the WAFF is primarily due to the use of original
loan-to-value (OLTV) ratios in the WAFF calculation (as opposed
to current LTV ratios), and the application of an originator
adjustment at the higher end of S&P's originator adjustment range
(0.7x to 1.3x), reflecting the observed historical performance of
DSB Bank originated pools.

The increase in the WALS is mainly due to the application of
S&P's updated market value decline assumptions, which are higher
under S&P's updated criteria.

The asset pool contains a large proportion of loans whose
borrowers alleged, among other issues, due care failures with
respect to the selling of accompanying insurance products and the
overextension of credit.

In September 2011, DSB Bank's insolvency administrator and
consumer organizations entered into a framework agreement to
clarify the extent and potential set-off amount of these claims.
The agreement allowed borrowers to offset compensation amounts
against their outstanding loan balance.  Under the agreement,
compensation amounts were first set off against any arrears, and
borrowers subsequently set off against the principal amount
outstanding of any loan at their discretion--most likely the
loans bearing the highest interest rate.  The period for
borrowers to apply for compensation ended on Nov. 8, 2015.

In November 2015, DSB Bank's bankruptcy trustee reported the
impact of duty-of-care claims at EUR7.0 million in Dome 2006-I.
Claims completed and processed were provisioned to the respective
principal deficiency ledgers.  In response, the issuer claimed
against the DSB Bank estate on the basis of, among other factors,
a breach of the representations and warranties that DSB Bank
provided at closing to the issuer.

Since S&P's previous review, DSB Bank's bankruptcy trustee has
agreed to buy off each issuer's claim and related future claims
by paying the issuer's claim less the distributions that have
already been made, representing a payout ratio of 100% of the
amount claimed.  The expected recoveries flowed into the
transaction in the April 2016 interest payment date and have
replenished the reserve fund and increased the available credit
enhancement for all rated notes.

Despite the increased WAFF and WALS, the increased level of
available credit enhancement for Dome 2006-I's class B and C
notes is commensurate with higher ratings than those currently
assigned. S&P has therefore raised its ratings on the class B and
C notes.

The available credit enhancement for the class A notes is
commensurate with a 'AA+ (sf)' rating under our Dutch RMBS
criteria.  However, as S&P do not consider the swap agreements to
be in line with its current counterparty criteria, the maximum
potential rating for the notes is constrained at one notch above
the issuer credit rating on the swap guarantor, Cooperatieve
Rabobank U.A. (A+/Stable/A-1).  S&P has therefore raised to 'AA-
(sf)' from 'A+ (sf)' its rating on the class A notes.

S&P's credit and cash flow analysis indicates that the credit
support available for the class D notes is not commensurate with
the stresses that S&P applies at the 'B' rating level.
Consequently, S&P has affirmed its 'B- (sf)' rating on the class
D notes.

The assets backing Dome 2006-I are residential mortgage loans,
granted to individuals in the Netherlands. DSB Bank (now
insolvent) originated the loans in both transactions.


Class               Rating
          To                    From

Dome 2006-I B.V.
EUR512.4 Million Mortgage-Backed Notes

Ratings Raised

A         AA- (sf)              A+ (sf)
B         A (sf)                BBB+ (sf)
C         BBB (sf)              BB- (sf)

Rating Affirmed

D         B- (sf)


NJORD GAS: S&P Raises Rating on NOK3.798BB Sr. Bonds to 'BB+'
S&P Global Ratings raised to 'BB+' from 'BB-' its long-term issue
ratings on Norwegian krone (NOK)-equivalent 3.798 billion senior
secured bonds, issued by Norway-based asset company Njord Gas
Infrastructure AS (NGI or ProjectCo).  The recovery rating
remains unchanged at '1'.  The outlook is stable.

At the same time, the ratings were removed from CreditWatch with
positive implications, where they were placed on June 16, 2016.

The upgrade reflects the improving credit profile of NGI's bonds
following a reprofiling of the bond amortization completed on
July 1, 2016.  The reprofiling extended the maturities of all
NGI's outstanding bonds by 12 months, and amended the respective
amortization schedules by front loading principal repayments to
better align the debt service with the project's expected cash
flows.  As a result, the minimum DSCR under S&P's base-case
scenario increased to 1.11x and the project is now more resilient
under its downside analysis.  The overall debt service also
reduced, as a result of a lower interest component of a more
front loaded amortization profile.

The transaction amended the amortization schedule for each series
of bonds to better reflect the transaction's cash flow generation
profile for the remaining duration of the bonds.  In addition,
the final maturity date for each series of bonds has been
extended by one year to Sept. 30, 2028.  As a consequence of the
amendments to the amortization schedules, the issuer has made an
extraordinary debt service payment on July 6, 2016.  The notional
amount and coupon rate of the bonds will remain unchanged.

The hedging arrangements have also been amended to align with the
amortization schedule of the bonds.  NGI has entered into
additional swap agreements with the Royal Bank of Scotland PLC in
relation to the Series 2 bonds, Series 3 bonds, and Series 4
bonds to hedge the additional foreign exchange rates -- if
applicable -- and inflation.  These additional swap agreements
overlay the existing swap agreements.

The bondholders approved the transaction and the documents were
executed on July 1, 2016.  S&P do not consider this proposed bond
restructuring as a distressed exchange because the bondholders
will still receive 100% of par value through maturity, and
interest and seniority of the bonds will remain unchanged
following the realignment.  In addition, in S&P's view, there is
not a realistic possibility of a conventional default in the near
term, given ProjectCo's strong liquidity.

The stable outlook reflects S&P's view of the steady operating
environment for the Gassled network -- the Norwegian gas pipeline
network and associated processing facilities -- and NGI's reduced
volume risk following the significant reduction in tariffs for
future bookings.

S&P could take a negative rating action if NGI's financial
profile weakened further, most likely if the project's strong
cash position and its liquidity position deteriorated.  This
could occur if significant amounts of cash were upstreamed to
sponsors. Continued currency depreciation could also affect
forecast DSCR as it would create higher future tax payments for
the ProjectCo due to the timing mismatch between the tax
treatments of the foreign exchange loss on the bonds and the
corresponding gain on the derivative instrument.

S&P could take a positive rating action if NGI's financial
profile proved stronger than S&P currently forecasts, and its
projected minimum ADSCR was higher than 1.14x.  This could
result, for example, from a substantial currency appreciation.
In addition, a successful legal action that resulted in a
reversal of the 2013 tariff amendments would be likely to result
in a multi-notch upgrade.


FCRB BANK: Moratorium on Meeting Creditors' Claims Terminated
Due to the termination of the banking license of FCRB Bank, LLC,
(Order No. OD-2106, dated July 1, 2016), the Bank of Russia took
a decision (Order No. OD-2109, dated July 1, 2016) to terminate
from July 1, 2016 the moratorium on meeting claims of the
creditors of FCRB Bank, established by Bank of Russia Order No.
OD-1100, dated July 1, 2016, "On Imposing Moratorium on Meeting
Claims of the Creditors of the Moscow-based Credit Institution
FCRB Bank, Limited Liability Company, or LLC FCRB Bank".

URALKALI: Shareholder Change No Impact on Fitch's BB- Rating
Fitch Ratings says there is no immediate rating impact on Russian
potash player Uralkali (BB-/Stable) from its new shareholder

ONEXIM officially announced the sale of its 20% equity stake in
Uralkali to Belorussian businessman Mr. Lobyak on July 8, 2016.
Uralkali's other shareholders are OJSC Uralchem (controlled by
Mr. Mazepin) which controls around 20%, and 8% free float. The
remaining equity is quasi-treasury shares bought back by Uralkali
to date. Since Uralchem and ONEXIM's acquisition of Uralkali's
stakes in 4Q13 the company's board and top management has
effectively been controlled by Mr. Mazepin.

Fitch said, "The multi-billion US dollar transaction has not
impacted Uralkali's balance sheet, which has limited room for
sizeable shareholder distributions under our rating guidelines
and bank covenants. We are not aware of Mr. Lobyak's other cash-
generative businesses that could fully fund the deal, and
therefore do not exclude the possibility of the transaction
eventually being funded by Uralkali's shareholder distributions
over the next years. However, our current expectations
incorporate around $US0.5billion shareholder distributions in
2017 and beyond, which in our opinion adequately represents such
a risk over the coming years. This is also based on our assurance
that Uralkali remains committed to fulfilling the leverage
covenants under its banking debt.

"Mr. Mazepin owns 20% of Uralkali but exercises full board and
management control. We do not expect the new 20% shareholder to
significantly change Uralkali's financial, dividend or M&A policy
in a way that would negatively affect its current ratings. Fitch
will continue to monitor any strategic changes in the company."


BBVA CONSUMO 8: Fitch Assigns 'CCC(EXP)' Rating to Class B Debt
Fitch Ratings has assigned BBVA Consumo 8 FT's asset backed
fixed-rate notes expected ratings as follows:

EUR612.5 million Class A: 'A+(EXP)sf'; Outlook Stable
EUR87.5 million Class B: 'CCC(EXP)sf'

This transaction is an 18-month revolving securitization of
unsecured consumer loans in Spain for car acquisition purposes.
All the loans are originated and serviced by Banco Bilbao Vizcaya
Argentaria, S.A. (BBVA, rated A-/Stable/F2), which is also the
SPV account bank provider. Final ratings are contingent on the
receipt of final documentation conforming to information already

Blended Default Rate Assumption
Fitch has assumed a blended 5.7% base case lifetime default rate
on the collateral, expressed as a percentage of initial
collateral euro balance. While the portfolio at closing date will
comprise 64% new car loans and 36% used car loans, the blended
default rate analysis is calibrated with a slightly larger share
of used car loans to 40% as per the covenants established during
the revolving period.

Recoveries Based on Comparable Transactions
Fitch's credit analysis captures a recovery expectation of 25% on
defaulted amounts under a base case scenario, which is
substantiated with observed recoveries from comparable unsecured
securitizations rated by Fitch. The agency has given no credit to
recovery vintage data presented by BBVA, considering the
inconsistencies found, such as unexplained peaks in very late
post-default periods. The lifetime credit loss rate on the
collateral is therefore assumed at 4.3% under a base case

Revolving Period Exposure
The revolving period would be terminated early if the balance of
loans in arrears over 90 days is greater than 2.2% of the
collateral balance. Fitch views this level much tighter than the
historical arrears ratio presented by BBVA on its auto loan book
that has ranged between 5% and 8% over the past five years, and
therefore believes the transaction is exposed to buybacks of non-
performing loans by the originator. This risk has been captured
in Fitch's default rate stresses, as detailed below, and
prepayment rates will be carefully monitored since the seller and
transaction trustee will not report buybacks separately.

High Performance Stresses
The 'A+' lifetime default rate assumption of 25% implies a
default rate multiple of 4.4x from the base case, which is high
compared with other recent transactions rated by Fitch. This
multiple captures several risk factors, such as the revolving
period exposure and significant loan book performance volatility
observed during periods of stress, particularly in the used car
loan segment. The credit loss rate expectation under a 'A+'
stress scenario is 21%.

Strong Credit Enhancement
The class A and B notes have a credit enhancement of 17% and
4.5%, respectively, provided by overcollateralization and the
reserve fund. In addition, the transaction benefits from
significant excess spread as the assets will pay a minimum fixed
rate of 7.5% (as per the revolving covenants) compared with the
1% weighted average fixed rate on the liabilities. Available
excess spread on each interest payment date may be used to
provision for defaults, defined in the transaction as receivables
in arrears over 18 months.

Counterparty Dependency Caps
BBVA acts as originator, servicer, SPV account bank and paying
agent. In accordance with Fitch's Counterparty Criteria, the
rating of the notes is capped at 'A+sf' as the rating trigger
upon which remedial actions on the account bank would be taken is
set at 'BBB' and also because no structural mitigants against
servicer disruption risk have been put in place. Notwithstanding,
at the notes' rating scenario, Fitch sees payment interruption
risk as immaterial, given the financial strength of the servicer
and that BBVA is a regulated bank under the Spanish Law.

Class B's Market Value Risk
Fitch has capped class B notes rating at 'CCCsf' and has not
assigned a recovery expectation. This takes into account the
seller's ability to exercise a clean-up call when the portfolio
balance is less than 10% of its initial amount, which in turn
would liquidate early the transaction, even if available funds
are insufficient to fully amortize class B notes. In such a
scenario, the repayment of class B notes is exposed to the price
at which the SPV would sell the assets to the seller, among other
factors. The class B notes would have reached a high speculative-
grade or low investment-grade rating in absence of this risk.

The following are the model-implied sensitivities from a change
in selected input variables:

Current ratings:
-- Class A notes: 'A+sf'
-- Class B notes: 'CCCsf'

Decrease in recovery rates by 50%:
-- Class A notes: 'A+sf'
-- Class B notes: 'CCCsf'

Increase in default rates by 15% and decrease in recovery rates
by 15%:
-- Class A notes: 'Asf'
-- Class B notes: 'CCCsf'

Increase in default rates by 30% and decrease in recovery rates
by 30%:
-- Class A notes: 'A-sf'
-- Class B notes: 'CCCsf'

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

Fitch reviewed the results of a third party assessment conducted
on the asset portfolio information, which indicated no adverse
findings material to the rating analysis.

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.

U N I T E D   K I N G D O M

AVANTI COMMUNICATIONS: S&P Lowers CCR to 'CCC-', Outlook Negative
S&P Global Ratings lowered its long-term corporate credit rating
on U.K.-based fixed-satellite services (FSS) provider Avanti
Communications Group PLC (Avanti) to 'CCC-' from 'B-'.  The
outlook is negative.

At the same time, S&P lowered its issue ratings on the company's
senior secured debt to 'CCC' from 'B'.  The recovery rating is
unchanged at '2', indicating S&P's expectation of substantial
recovery prospects in the event of default in the lower half of
the 70%-90% range.

S&P also removed the ratings from CreditWatch with negative
implications, where they were placed on Feb. 26, 2016.

The downgrade and negative outlook follows Avanti's announcement
on July 7, 2016, that it may not have access to sufficient
liquidity to meet its funding requirements through the second
quarter of the FY2017 unless it secures additional funding or
delivers on contingency cost reduction or deferral measures.

Avanti is negotiating an export credit agency facility, but S&P
now understands that the full availability of the facility
requires Avanti to raise at least $50 million in equity.  The
company will seek to raise equity from existing and other
potential strategic investors. Avanti is also conducting a wider
strategic review which may lead to a merger or sale of the
company.  The board has also identified possible cost-saving
initiatives in operations and capital expenditure (capex) to save
up to $58 million over a three-year period.

Given the uncertainties, S&P has not included any additional
financing into its base case.  Furthermore, S&P do not think that
the identified cost-saving initiatives could solve Avanti's
short-term liquidity challenges.  This is due to S&P's
understanding of management's commitment to finalize the
construction and launch of the HYLAS 4 satellite by the third
quarter of FY2017 and its mainly fixed cost base.  Cash reserves
of $57 million are lower than S&P had previously expected--mainly
due to very negative working capital development.  Along with our
assumption of negative operating cash flow, S&P thinks it is
highly unlikely that Avanti will meet all of its financial
obligations in the first half of FY2017.

Avanti is a small player in the FSS industry and is still in the
process of developing a limited fleet of satellites.  Despite
Avanti's relatively good contract backlog of $402 million as of
the end of March 2016 and contract wins of over $70 million
during the fourth quarter of FY2016, S&P still sees meaningful
execution risks in filling satellite capacity quickly and
reaching sufficient revenue levels to generate positive cash

The negative outlook reflects the possibility that S&P could
lower the ratings on Avanti further over the next few months if
it is unable to secure meaningful additional financing.

S&P could lower the long-term rating to 'CC' if Avanti is unable
to secure meaningful additional financing, as S&P thinks this
would make a short-term default inevitable.

S&P could raise the ratings if Avanti is successful in gaining
access to reasonable additional liquidity to cover at least the
next 12 months' cash interest and committed capex.

RMPA SERVICES: S&P Affirms 'BB+' Rating on GBP580MM Bonds
S&P Global Ratings said that it affirmed its 'BB+' long-term
issue rating on the GBP580 million 5.337% bonds due Sept. 30,
2038, issued by U.K.-based RMPA Services PLC (ProjectCo) and
revised the outlook to positive from stable.  The recovery rating
of '2' is unchanged, reflecting S&P's expectation of recovery in
the upper end of 70%-90% in the event of a default, excluding the
benefit of Ambac Assurance Corp.

RMPA Services issued the bonds to finance the construction of
Colchester Garrison, in southeast England, for the U.K. Ministry
of Defence (MoD), under a 35-year private finance initiative
concession agreement.

The bonds retain an unconditional and irrevocable guarantee
provided by Ambac of payment of scheduled interest and principal.
Under S&P's criteria, the rating on a monoline-insured debt issue
reflects the higher of either the rating on the monoline or the
Standard & Poor's underlying rating (SPUR).  Therefore, the long-
term rating on the bonds reflects the SPUR as Ambac is no longer
rated.  The SPUR is driven by the operations phase stand-alone
credit profile (SACP) given that the project is not exposed to
construction risk.

The outlook revision reflects S&P's view that the financial
profile of RMPA Services has significantly improved since S&P's
last review, demonstrated by higher debt service coverage ratios
(DSCRs) throughout the concession of 1.14x minimum and 1.35x
average.  This improvement in ratios is driven primarily by a
revised lifecycle profile and reduced corporate tax payable.

In 2015, RMPA Services appointed an independent technical
advisor, Arup, to validate the project's lifecycle profile for
the remaining life of the concession.  The changes in the
lifecycle profile are a result of detailed surveys and revisions
to original assumptions made at financial close more than 12
years ago which, according to ProjectCo, no longer reflected the
current asset condition.  The lender's technical advisor,
InfraConsult, has reviewed the revised lifecycle profile and is
content with the approach that RMPA Services has taken to
forecast future costs. While S&P draw comfort from the comments
made by the lenders' technical advisor, it still considers the
quantum of savings achieved by ProjectCo as material and would
expect to see a period of achievement over coming months before
considering raising the rating.

The corporate tax payable throughout the concession has also seen
an overall reduction due to a lower corporation tax rate in the
U.K.  Also, more significantly, shareholders have recently agreed
to pass down consortium tax losses to ProjectCo, further reducing
its future tax liabilities.  Despite these improvements in
ProjectCo's future tax position, S&P views the potential
distribution to shareholders of previous tax loss receipts as
aggressive, as well as future potential distributions of surplus
cash from anticipated lifecycle cost reductions.

Soft facilities management (FM) services are currently carried
out by Sodexo Ltd. and hard FM services by Sodexo Property
Services, a subsidiary of Sodexo Ltd.  Both the hard and soft FM
providers merged into one entity, Sodexo Ltd., with effect from
May 31, 2016, and it is managed under a total facility site
manager.  S&P views this corporate change by Sodexo as a positive
development for ProjectCo since it would have a single point of
contact to manage FM services.  However, S&P do not expect this
development to result in any rating implication for the project.

The U.K.'s MoD is pleased with the overall performance of RMPA
Services, shown by very low deductions during the 12-month
period. The deduction levels reported are below covenant trigger
thresholds and not currently a risk to the project.  There have
been no material deductions or adverse trends and ProjectCo
enjoys stable operational performance and positive working
relationships with its various counterparties.

Given the irreplaceable and material nature of the revenue
counterparty, the MoD, S&P assign to it a counterparty dependency
assessment (CDA) of 'aa' equal to the sovereign credit rating on
the U.K. (AA/Negative/A-1+).

S&P does not apply a CDA to the operations and maintenance
service provider, Sodexo Ltd., as the services provided are
relatively simple and the project has adequate liquidity to
replace the contractor if required.

ProjectCo's account bank is Bank of Scotland PLC (A/Negative/
A-1).  This does not currently constrain the issue rating on the

Full Credit Guarantee. Senior debt is guaranteed by Ambac, which
is not rated by S&P Global Ratings.

Comparable Rating Adjustment.  S&P makes a one-notch negative
comparable rating adjustment to the SACP to reflect the
continuing aggressive financial policy adopted by ProjectCo.

Under S&P's criteria, it assess ProjectCo's liquidity as neutral.
Liquidity is provided by a slightly stronger-than-average debt
service reserve account, which is funded to meet the next nine
months of senior debt service.  Additional liquidity is provided
by a three-year forward-looking major maintenance reserve.

The positive outlook reflects S&P's view that the recent
improvement in the project's financial profile combined with
continuing stable operational performance could lead S&P to
upgrade RMPA Services by at least one notch.

S&P considers an upgrade reasonably likely over the next 12
months, following a period of delivery against the revised
lifecycle budget in line with the review undertaken in recent
months as well no further material re-profiling, in line with
S&P's expectations.  S&P would view such a scenario as consistent
with a higher operational phase SACP if the project maintains the
current minimum debt service coverage ratio at 1.14x.

S&P could revise the outlook to stable if the project's annual
debt service coverage ratios were to be below 1.10x.  In S&P's
opinion, weakened credit metrics are most likely to occur as a
result of unexpected increases in lifecycle spending.  The rating
may also come under pressure if the continued distribution of
unspent life cycle funds were to weaken the project's liquidity.

* UK: Number of Pubs, Bars Going Bust Up 53% in 2nd Qtr. 2016
The Scotsman reports that pubs and bars are being hammered by the
introduction of the national living wage, poor weather and the
Brexit decision, with increasing numbers going bust as a result.

According to The Scotsman, figures from insolvency specialist
Begbies Traynor show that the number of pubs and bars which were
dissolved in the second quarter increased 53% to 831.

The research also reveals that one in five pubs and bars faces
"significant financial distress", also up from last year, The
Scotsman discloses.

"The knock-on effect of England and Wales's exits from the Euros,
and the damage to consumer confidence in light of the current
economic and political uncertainty, means the UK's pubs and bars
face serious challenges ahead that could result in more business
closures or failures over the coming months," The Scotsman quotes
Julie Palmer, partner at Begbies Traynor, as saying.


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

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

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


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

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

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

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

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

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

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