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

                           E U R O P E

            Tuesday, August 9, 2016, Vol. 17, No. 156


                            Headlines


A L B A N I A

ALBANIA REPUBLIC: S&P Affirms 'B+/B' Sovereign Credit Ratings


A Z E R B A I J A N

AZERENERJI JSC: S&P Revises Outlook to Neg. & Affirms 'BB/B' CCRs


B E L A R U S

BELARUS: Fitch Affirms 'B-' Long-Term IDR, Outlook Stable


F R A N C E

NOVARTEX: Moody's Cuts CFR to Ca & Changes Outlook to Developing


G R E E C E

GREECE: Int'l Creditors to Discuss Bailout Reforms in September


I R E L A N D

CAVENDISH SQUARE: Fitch Affirms 'B-sf' Rating on Class C Notes
ION TRADING: Moody's Affirms B2 CFR; Outlook Stable
PULS CDO 2007-1: S&P Lowers Ratings on 3 Note Classes to 'D (sf)'


I T A L Y

BANKRUPTCY NR. 17/2014: Oct. 4 Bid Deadline Set for Assets
DIAPHORA1 FUND: September 28 Bid Deadline Set for Properties
GOLDEN BAR: Moody's Assigns Ba3 Rating to Cl. C-2016-1 Notes


L U X E M B O U R G

ALGECO SCOTSMAN: Moody's Continues to Review for Downgrade B3 CFR
FLINT GROUP: S&P Lowers Corporate Credit Rating to 'B'


N E T H E R L A N D S

* NETHERLANDS: Number of Company Bankruptcies Down to 367 in July


R O M A N I A

ADM FARM: Insolvency House Puts Up Assets for Sale


S P A I N

GRUPO ISOLUX: Bankruptcy Credit Occurred, ISDA Committee Says
IM SABADELL: Moody's Assigns B2 Rating to Series B Notes

* Fitch Affirms 7 Spanish Covered Bond Programs; Outlook Stable


U N I T E D   K I N G D O M

BHS GROUP: Sir Philip Urged to Cover GBP700MM Pension Deficit
EUROHOME UK 2007-1: S&P Raises Rating on Class B1 Notes to B+
GALA ELECTRIC: Moody's Puts B1 CFR on Review for Upgrade
HERCULES PLC: S&P Lowers Rating on Class E Notes to 'D (sf)'
LOGISTICS UK 2015: Fitch Affirms 'Bsf' Rating on Class F Notes


                            *********


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A L B A N I A
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ALBANIA REPUBLIC: S&P Affirms 'B+/B' Sovereign Credit Ratings
-------------------------------------------------------------
S&P Global Ratings affirmed its 'B+/B' long- and short-term
foreign and local currency sovereign credit ratings on the
Republic of Albania.  The outlook is stable.

                             RATIONALE

The affirmation reflects S&P's view that Albania's steady
economic performance and ongoing improvement in its fiscal
consolidation are likely to continue despite the risks of fiscal
slippages due to the 2017 general elections or external financing
pressures.  In S&P's view, the risk that Albania could
potentially face refinancing pressures of its still-high
government debt is mitigated by its compliance with the existing
International Monetary Fund Extended Fund Facility (IMF EFF or
the arrangement) in place until early 2017, and by reducing
refinancing risks through the lengthening of the government's
debt maturity structure.  Moreover, S&P thinks that economic
growth is likely to be supported by institutional improvements,
such as the implementation and full compliance with the July 2016
parliamentary approval of the judicial reform package, the
absence of which has been a key deterrent for more significant
foreign investments.

S&P believes that a successful track record of implementing
reform in the country's judicial institutions, besides improving
the business climate, could drive Albania's progress toward
opening EU accession negotiations over the coming 12 months.
This would, however, not only hinge on Albania itself but also on
political developments regarding the EU.  The government has
already tackled several reform areas over the past years, such as
pensions, local governments, and energy supply.

S&P expects that Albania's economy will grow by an annual average
of 3.7% over 2016-2019, with domestic demand contributing more
strongly to growth performance over the next couple of years,
which represents a shift from recent years when net exports were
the primary growth engine.

In that regard, S&P expects that net foreign direct investment
(FDI) inflows, especially in the hydropower sector and the Trans-
Adriatic Pipeline project in 2016-2018, will likely fund most of
Albania's large current account deficit, projected at about 13%
of GDP on average during 2016-2018.  In order to improve the
trade balance, which has been adversely affected by low commodity
prices in 2015 and 2016, and shift to more export-oriented
economic growth, FDI will remain key over the coming years and
could be supported by the abovementioned judicial reform.
Albania's gross external financing needs, which S&P estimates at
116% of current account receipts in 2016, are significant.  Its
external indebtedness is relatively low as financing for the
current account deficit has historically been more in the form of
net foreign investment, particularly in the energy sector, rather
than debt-creating inflows.  While narrow net external debt, by
S&P's measures, increased in 2014-2015, it projects that it will
remain rather stable relative to current account receipts in
2016-2019.

Given Albania's links with Greece, home to a substantial Albanian
population, the Greek crisis has structurally reduced remittances
to Albania as workers returned, although remittances flared up
before the capital controls in Greece were established last
summer.  S&P currently projects remittances to remain subdued at
about 7% of GDP in the next few years (compared with an average
13% of GDP over 2004-2008), but migration of Albanians to other
countries will contribute to further diversify remittance
sources.

"We expect Albania's fiscal performance will remain solid over
2016-2019 as authorities continue to make progress under an IMF
program that targets fiscal and structural reforms.  As a result,
we expect general government debt will decline to 62% of GDP in
2019 from about 72% of GDP in 2015.  We include in our
calculation of general government debt also debt issued mainly by
the electricity sector and guaranteed by the government (nearly
4% of GDP) to reflect our view that the probability of these
guarantees being called is high.  Our measure of net general
government debt is set do decline to 60% of GDP by 2019 from just
under 70% in 2015.  Our expectation of future general government
deficit reduction to 1.5% of GDP in 2018 from 4% in 2015 is based
on the government's plan to increase revenues through increased
efficiency on tax and customs revenue collection and compliance
while broadening the tax base.  We observe that tax collection in
Albania is challenged by evasion and administrative deficiencies,
and we therefore believe that recent measures to improve tax
compliance will aid an improvement in government finances, albeit
gradually," S&P said.

The main near-term threat to Albania's public finances would be
an increasing fiscal deficit due to the general elections in
2017, potentially coupled with arrears accumulation and an
economic slowdown due to increased political uncertainty.  S&P
understands that the government is better positioned to avoid
such a situation than in the last general election year in 2013,
when financing pressures for the government emerged.  This is in
part due to provisions of the new budget law that are explicitly
designed to avoid spending slippages ahead of elections and a new
fiscal rule aims to anchor the downward trajectory of public debt
toward a long-term target of 45% of GDP.  S&P notes, however,
that the robustness of fiscal rules remains to be tested.  At the
same time, the government itself is structurally in a better
fiscal position with significant reserves ($3.1 billion at year-
end 2015) and has successfully improved the structure of public
debt.

The government has extended its debt maturity profile
considerably over the past three years.  However, for the
domestic portion of debt, average maturity remains short, at 741
days as of June 30, 2016.  Domestic debt currently accounts for
over 50% of the total. Albania markedly reduced its financing in
the domestic market in 2015-2016 in favor of external borrowing.
However, S&P still views the links between the government and the
country's financial sector as a potential refinancing risk.  For
example, Albania's banking system still holds the largest share
of domestic debt, and over 20% of the banking system's assets are
government securities.

Potential improvements in the legal system are also important in
order to reduce nonperforming loans (NPLs).  The high level of
NPLs in the financial sector hampers lending and constrains
faster economic growth.  The government is making strides in
tackling NPLs comprehensively through legal changes that aim at
improving collateral execution, for example by strengthening
bankruptcy and private bailiff laws.  NPL levels were still high
at about 18% at end-2015.

S&P projects that the deposit-funded financial sector will remain
in a net external creditor position over the next few years.
Capital buffers in the banking system are well above minimum
capital requirements.  The increase of the financial sector's net
foreign assets -- in part the reflection of high liquidity --
mirrors the country's weak growth performance and limited lending
opportunities for banks in recent years, but also deleveraging of
foreign banks' subsidiaries and high risk aversion that can in
part be attributed to weaknesses in the legal framework for
collateral execution.  S&P estimates bank credit to the private
sector to have grown at slightly over 2% in the first half of
2016.  Subsidiaries of Greek banks maintain a sizable presence in
Albania and the authorities have taken measures to limit exposure
to their parents and prevent contagion risks to the rest of the
sector.

The Albanian central bank's policy of monetary easing will
continue throughout 2016--as inflation will likely remain well
below the 3% target.  However, the high share of foreign currency
loans (at about 60%) and deposits (at about 50%) is hindering the
effectiveness of Albania's monetary policy, as it does in several
economies across the region.

S&P notes that Albania's central bank intervened only marginally
in the foreign exchange market in 2014-2016 to increase its
foreign currency reserves in line with its targets.  Otherwise it
maintains a free-floating exchange rate regime.  Although
Albania's monetary flexibility benefits from this regime, it is
challenged by the relatively shallow foreign exchange and capital
markets.

                              OUTLOOK

The stable outlook reflects S&P's view of the balanced risks to
the ratings on Albania over the next 12 months, since S&P
anticipates that Albania will continue the fiscal consolidation
that is anchored by its IMF EFF program, while containing
potential risks to its economy and policymaking.

S&P could raise the ratings if structural reforms established a
track record of improved institutions, strengthened investment,
and lifted income levels.  The significant reduction of
government debt beyond S&P's current forecasts, potentially
alongside higher-than-expected economic growth, would also be
positive for the ratings.

S&P could lower the ratings if the government's finance position
deviated significantly from our current projection, along with
potential financing pressures.  S&P could also lower the ratings
if it saw a significant deterioration in Albania's external
position and ability to fund its current account deficit, which
could also occur if the availability of external official support
were uncertain.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable.  At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee
by the primary analyst had been distributed in a timely manner
and was sufficient for Committee members to make an informed
decision. After the primary analyst gave opening remarks and
explained the recommendation, the Committee discussed key rating
factors and critical issues in accordance with the relevant
criteria. Qualitative and quantitative risk factors were
considered and discussed, looking at track-record and forecasts.

The committee agreed that all key rating factors were unchanged.

The chair ensured every voting member was given the opportunity
to articulate his/her opinion.  The chair or designee reviewed
the draft report to ensure consistency with the Committee
decision. The views and the decision of the rating committee are
summarized in the above rationale and outlook.  The weighting of
all rating factors is described in the methodology used in this
rating action.

RATINGS LIST

Ratings Affirmed

Albania (Republic of)
Sovereign Credit Rating                B+/Stable/B
Transfer & Convertibility Assessment   BB
Senior Unsecured                       B+


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A Z E R B A I J A N
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AZERENERJI JSC: S&P Revises Outlook to Neg. & Affirms 'BB/B' CCRs
-----------------------------------------------------------------
S&P Global Ratings said that it has revised its outlooks on
Azerbaijan-government-related companies Azerenerji JSC and State
Oil Company of Azerbaijan Republic (SOCAR) to negative from
stable.

At the same time, S&P affirmed its 'BB/B' long- and short-term
corporate credit ratings on Azerenerji, and S&P's 'BB' long-term
corporate credit rating on SOCAR.

The outlook revisions follow similar action on Azerbaijan on
July 29, 2016.

S&P considers both companies to be government-related entities
(GREs) that S&P believes may receive different levels of
extraordinary support from the government of Azerbaijan.

S&P has not revised its assessment of the likelihood of
extraordinary support these companies might receive from the
government.

                           AZERENERJI JSC

In S&P's view, there's still an almost certain likelihood that
Azerenerji would receive timely and sufficient extraordinary
support from Azerbaijan's government, if needed.  S&P do not
equalize the ratings on the company with the sovereign rating,
however, because it see a risk that the likelihood of
extraordinary government support could weaken over time.  S&P
thinks that the state could adopt a more stringent approach to
providing extraordinary support over the next few years, which
could in turn lead S&P to revise its current view of Azerenerji's
role as critical.

S&P continues to assess Azerenerji's stand-alone credit profile
(SACP) at 'ccc+'.  No change of the SACP will affect S&P's
ratings on Azerenerji as long as S&P views the likelihood of
extraordinary government support as almost certain.

The negative outlook on Azerenerji reflects that on the sovereign
rating.  In accordance with S&P's criteria for rating GREs, if
S&P was to lower the long-term rating on Azerbaijan by one notch,
this will likely result in a similar rating action on Azerenerji,
all else being equal.

              STATE OIL COMPANY OF AZERBAIJAN REPUBLIC

S&P continues to see an extremely high likelihood that SOCAR
would receive timely and sufficient extraordinary support from
Azerbaijan's government, if needed.  S&P continues to assess
SOCAR's SACP at 'bb-', incorporating S&P's view of its fair
business risk profile, significant financial risk profile, and a
negative financial policy modifier.

The negative outlook on SOCAR reflects that on the sovereign
rating, indicating that if S&P was to lower the long-term rating
on Azerbaijan by one notch, this will likely result in a similar
rating action on SOCAR, all else being equal.  In addition, S&P
could downgrade SOCAR if its SACP were to deteriorate
substantially.  But for that to happen, the SACP would need to
weaken to the 'ccc' category, which S&P sees as unlikely over the
next two years.

RATINGS LIST

Azerenerji JSC

Ratings Affirmed; Outlook Action
                                  To                 From
Azerenerji JSC
Corporate Credit Rating          BB/Negative/B      BB/Stable/B

State Oil Company of Azerbaijan Republic

Ratings Affirmed; Outlook Action
                                  To                 From
State Oil Company of Azerbaijan Republic
Corporate Credit Rating          BB/Negative/--     BB/Stable/--
Senior Unsecured                 BB                 BB


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B E L A R U S
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BELARUS: Fitch Affirms 'B-' Long-Term IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed Belarus's Long-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) at 'B-' with a Stable
Outlook. The Short-Term Foreign-Currency and Local-Currency IDRs
are affirmed at 'B' and the Country Ceiling at 'B-'.

KEY RATING DRIVERS

Belarus's ratings balance high external vulnerabilities and a
track record of frequent crises with solid public finances and
structural indicators; notably, GDP per capita and human
development well above peers.

External liquidity is a key credit weakness. Belarus's gross
external financing requirement as a percentage of FX reserves is
182%, among the highest of Fitch-rated emerging market
sovereigns, reflecting international reserves of just 1.6 months
of current external payments. Net international reserves of the
central bank are negative. Ad hoc support, generally from Russia,
has enabled Belarus to maintain a clean external debt service
record. Net external debt, at 50% of GDP, is well above the peer
median of 20%.

Financing the current account deficit (forecast at 3.4% of GDP in
2016) and sovereign foreign currency debt servicing obligations
of USD3.2 billion will partly rely on external support. The
government secured a USD2 billion loan from the Eurasian
Development Bank earlier in 2016 and has received the first two
tranches. The next Eurobond is due to mature in January 2018; the
government expects to pre-finance this in 2017. Political
commitment to securing an IMF program is uncertain.

Belarus's economy has experienced frequent crises stemming from
loose fiscal and monetary policy. Tighter fiscal and monetary
policy and the move to a flexible exchange rate from 2015 has
allowed a degree of economic and financial stability in the face
of the external shock in 2015 that has aggravated structural
weaknesses. Reforms to utility prices and pensions have been
implemented and directed lending cut in 2016, and conditions
attached to a loan from the Eurasian Development Bank set out a
road map for further reform. Belarus remains one of the least
transformed CIS economies and state-owned enterprises have an
outsized role.

Macroeconomic performance is much weaker than peers. Fitch
estimates average real GDP growth over the five years to 2016
at -0.1%, with the economy contracting 2.5% year-on-year in 1H16.
Fitch expects a return to modest growth in 2017, driven by an
improving external environment, but domestic demand will remain
weak. Potential growth is estimated by the IMF at less than 2%,
which in part reflects adverse demographic trends. Inflation has
averaged above 20% over the past decade, but has stabilized
around 12% so far in 2016 due to tighter policy and weak demand.
The effectiveness of monetary and exchange rate policy is
constrained by high levels of dollarization.

Policy measures have improved the performance of public finances,
but they continue to be distorted by quasi-fiscal activities,
including directed and off-balance sheet lending. The
consolidated budget, which includes the republican budget
(central and local government) in addition to the Social
Protection Fund, has recorded modest surpluses since 2010 (1.5%
of GDP in 2015). Tighter policy (including public sector pay
restraint, higher excise duties and the elimination of some VAT
exemptions) raised the surplus to 2.9% of GDP in 1H16. Fitch
assumes a modest reduction in the surplus for 2017 as the
government slightly eases restraint on spending.

The public debt ratio is in line with the 'B' median, but has
risen rapidly to 48.5% of GDP in 2015, largely owing to currency
depreciation (67% of debt is in foreign currency), from 22.2% in
2009. Fitch includes government guarantees, totalling 9.3% of
GDP, in its total debt calculations, due to the high likelihood
that the state will need to meet state-owned enterprises'
repayment obligations. Potential banking sector support costs
could add to the government debt burden.

Fitch assesses the banking sector as fundamentally weak. Non-
performing loans jumped to 13.4% of total lending at end-June
2016, from 6.8% at end-2015, due to recession and exchange rate
devaluation. Banks' large exposure to the public sector, around
50% of assets, results in significant correlation with the
sovereign credit profile. High corporate leverage and lending in
foreign currencies heighten credit risks. An asset quality review
is close to completion and a strategy to clean the balance sheets
of the state banks is being developed.

Structural indicators are neutral for the credit profile. GDP per
capita is nearly 50% greater than the peer median, while the
Human Development Index is more than double the peer median.
Doing Business indicators are well above the peer median.
However, Belarus scores below 'B' peers on the composite World
Bank governance indicator, reflecting weak voice and
accountability as well as rule of law scores.

Political power is concentrated in the hands of President
Lukashenko who has been in power since 1994. The opposition is
weak, and Fitch assumes that Lukashenko will remain in power over
the medium term, with parties close to the president securing a
comfortable victory in the legislative elections scheduled for
September. Belarus has close ties with Russia, although the
relationship can at times be strained.

SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO)

Fitch's proprietary SRM assigns a score equivalent to a rating of
'B+' on the Long-Term FC IDR scale.

Fitch's sovereign rating committee adjusted the output from the
SRM to arrive at the final LTFC IDR by applying its QO, relative
to rated peers, as follows:

-- Macro: -1 notch, to reflect a history of poor economic policy
   management leading to frequent crises and weak potential
   growth relative to peers

-- External finances: -1 notch, to reflect a very high gross
   external financing requirement, negative net international
   reserves and reliance on often ad hoc external financial
   support to meet external debt obligations.

Fitch's SRM is the agency's proprietary multiple regression
rating model that employs 18 variables based on three-year
centered averages, including one year of forecasts, to produce a
score equivalent to a LTFC IDR. Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within our
criteria that are not fully quantifiable or not fully reflected
in the SRM.

RATING SENSITIVITIES

The main factors that could, individually or collectively, lead
to negative rating action are:

-- Materialization of severe external financing stresses, leading
   to macroeconomic and financial instability and increased risk
   of failure to meet foreign currency debt repayment
   obligations.

-- Deterioration in public finances resulting in a significant
   rise in government debt.

The main factors that could, individually or collectively, lead
to positive rating action are:

-- A reduction in external financing pressures, supported by a
   recovery in international reserves.

-- An improvement in Belarus's medium-term growth potential,
   stemming from implementation of structural reform agenda.

KEY ASSUMPTIONS

Fitch's assumes that Belarus will continue to benefit from ad hoc
financial support from Russia.


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F R A N C E
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NOVARTEX: Moody's Cuts CFR to Ca & Changes Outlook to Developing
----------------------------------------------------------------
Moody's Investors Service has downgraded Novartex's corporate
family rating to Ca from Caa2 and probability of default rating
(PDR) to Ca-PD from Caa2-PD.  Concurrently Moody's has downgraded
the rating of the EUR500 million Senior Bonds maturing in October
2019 (the New Money Bonds) issued by Vivarte to Caa1 from B3 and
the rating of the EUR780 million reinstated debt maturing in
October 2020 (the Reinstated Debt) issued by Novarte to Ca from
Caa3.  Vivarte and Novarte are both subsidiaries of Novartex.
The outlook on the ratings has been changed to developing from
negative.

                       RATINGS RATIONALE

The rating action follows the announcement by Novartex on
July 25, 2016, that the company had appointed a mandataire ad hoc
(judicial administrator) to lead debt restructuring negotiations
between the company, its shareholders, and lenders.  Through a
restructuring, management aims at reducing the size of the
company's debt to allow it to operate under a more sustainable
capital structure and be in a better position to secure renewal
of credit, foreign exchange, and guarantee facilities from
financial institutions. Moody's notes that the initiative from
the management is not driven by liquidity issues as Novartex
benefits from a large cash balance which amounted to EUR288
million as of May 31, 2016, and expected to increase
significantly by fiscal year ending (FYE) Aug. 31, 2016, based on
the seasonality of working capital.

The downgrade of the CFR to Ca from Caa2 reflects (1) the
elevated probability of default in the short-term as the
negotiations may result in a debt write-off and (2) the high
projected loss given default estimated at between 35% to 65% due
to the company's excessive leverage with no visibility at this
stage for any material improvement.  Moody's includes in its
leverage calculation the EUR800 million bonds redeemable into NRD
B Preferred Shares and the EUR2.5 million of shareholder loans,
both issued by Novartex, as they do not meet Moody's published
criteria for equity treatment.

Despite the completion of a debt restructuring in October 2014,
Novartex has failed in reducing its adjusted gross leverage
ratio, which stood at 10.3x as of FYE 2015 (based on audited
accounts as adjusted by Moody's mainly for large operating
leases).  While management has remained focused in delivering
cost savings measures, the gains were offset by a continued
decline in sales. Like-for-Like (LfL) net sales declined by 6.5%
in FY 2015 and by another 2.3% in the first nine months of FY
2016 leading to Moody's expectation of adjusted leverage
remaining elevated at above 10x by FYE 2016.

The EUR780 million Reinstated Debt, rated Ca, at the same level
as the CFR, is ranking above the bonds redeemable into NRD B
Preferred Shares and shareholders' loan, but is structurally and
contractually subordinated to the EUR500 million New Money Bonds,
rated Caa1.  Neither the New Money Bonds nor the Reinstated Debt
are guaranteed by the operating subsidiaries, but the New Money
Bonds benefit from a pledge over receivables related to
intercompany loans down-streaming the proceeds of the notes to
the operating subsidiaries.  At the level of the operating
companies, these intercompany loans rank pari passu with the
other operating liabilities, except for EUR150 million of trade
payables, which are guaranteed by letters of credit, ranking
ahead.

               RATIONALE FOR THE DEVELOPING OUTLOOK

The developing outlook reflects the uncertainty related to the
outcome of the negotiations.

                WHAT COULD CHANGE THE RATING UP/DOWN

Downward pressure on the ratings could result from Moody's
expectations that the negotiations could lead to a larger-than-
expected debt write-off resulting in a higher loss incurred by
Novartex's lenders.

Upward pressure on the rating is unlikely until the negotiations
are concluded.  However Moody's would consider an upgrade of the
ratings if the company manages to complete a restructuring, which
would lead to a more sustainable capital structure with a reduced
debt burden.  Positive rating pressure would also require signs
of a gradual recovery in net sales' growth and improving
profitability.

                     PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Retail
Industry published in October 2015.

Novartex is a France-based footwear and apparel retailer focusing
on the "branded" and "mass market" segments.  The company
operates a portfolio of 15 names (after the recent disposal of
Accessoire Diffusion/Maloles) including La Halle aux Chaussures
(HAC), Andre, Minelli and San Marina in the footwear division and
La Halle aux Vàtements (HAV), Caroll, Naf-Naf, Kookaã and
Chevignon in the apparel division.  Vivarte is the leader in the
French footwear market and holds solid positions in the more
competitive and fragmented apparel market.  In FY 2015, the
company generated revenues of EUR2.4 billion and EBITDA (company
reported) of EUR74 million (corresponding to EUR364 million on a
Moody's-adjusted basis, primarily after capitalization of
operating leases).


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G R E E C E
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GREECE: Int'l Creditors to Discuss Bailout Reforms in September
---------------------------------------------------------------
The National Herald reports that a brief summer break for
Greece's beleaguered government will end in September when
international creditors are expected to turn up the heat and
demand more reforms.

The government is trying to complete a previous list of 15
unfinished measures in order to get release of a EUR2.8-billion
(US$3.1 billion) from a staggered third bailout of EUR86 billion
(US$95.35 billion), The National Herald discloses.

According to The National Herald, the big sticking points will be
an insistence by the Quartet of the European Union-International
Monetary Fund-European Central Bank-European Stability Mechanism
(EU-IMF-ECB-ESM) for Greek workers to be stripped of their rights
and for banks to be able to seize properties of people who can't
pay because they've been crushed by austerity measures.


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I R E L A N D
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CAVENDISH SQUARE: Fitch Affirms 'B-sf' Rating on Class C Notes
--------------------------------------------------------------
Fitch Ratings has revised the Outlooks for Cavendish Square
Funding plc's junior notes, and affirmed all ratings as follows:

   -- Class A1: affirmed at 'BBBsf'; Outlook Stable

   -- Class A2: affirmed at 'BBsf'; Outlook Stable

   -- Class B: affirmed at 'Bsf'; Outlook revised to Stable from
      Negative

   -- Class C: affirmed at 'B-sf'; Outlook revised to Stable from
      Negative

Cavendish Square Funding is a cash arbitrage securitization of
European structured finance assets, mainly mezzanine RMBS, CMBS
and commercial ABS assets of speculative-grade quality.

KEY RATING DRIVERS

Stable Portfolio Performance

Portfolio performance has been stable over the last 12 months
with minimal changes to the portfolio's characteristics. The
reported weighted average rating factor of the performing
portfolio -- a measure of credit quality -- stands at 15.5, up
from 14.4 a year ago. Three assets defaulted during the period
while one previously defaulted asset was reclassified as
performing. Overall, the notional of defaulted assets increased
marginally to EUR29.9 million from EUR27.4 million over the last
12 months.

The portfolio continues to be heavily concentrated in RMBS (91%
of the performing portfolio). Fitch maintains a stable outlook on
the RMBS sector in Europe.

Prepayments Drive Deleveraging

The class A-1 notes received EUR34.6 million of principal
proceeds in the last 12 months, causing a build-up of credit
enhancement for all rated notes. The deleveraging was driven
mainly by prepayments from UK RMBS assets. The addition
protection available to the notes is reflected in the revised
Outlooks on the junior notes.

Long Expected Life

Fitch based its analysis on a time-to-repayment assumption for
the portfolio assets in line with its "Global Surveillance
Criteria for Structured Finance CDOs", dated 5 July 2016. Fitch's
overall weighted average life assumption for the portfolio is
10.5 years. The long expected portfolio life is driven mainly by
the large share of RMBS assets, for which Fitch assumes an
expected final payment date 25 years from the issue date.

RATING SENSITIVITIES

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

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch 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 affected
the rating analysis. Fitch has not reviewed the results of any
third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

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 groups within
Fitch 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.


ION TRADING: Moody's Affirms B2 CFR; Outlook Stable
---------------------------------------------------
Moody's Investors Service has affirmed the B2 corporate family
rating and the B2-PD probability of default rating of ION Trading
Technologies Limited, the Ireland-based global provider of
sell-side trading software and services to banks and other
financial institutions.  Moody's has also affirmed the B2 rating
of first lien credit facilities borrowed by ION Trading
Technologies S.a r.l. comprising USD400 million and EUR450
million first lien term loans maturing in 2021 and USD40 million
revolving credit facility (RCF) maturing in 2019.  The outlook on
all ratings is stable.

The rating affirmation primarily reflects these drivers:

   -- The increase in leverage following the proposed refinancing
      is within the leverage guidance for the B2 rating category

   -- The company's more aggressive than expected dividend policy
      is partially mitigated by the fact that the proceeds of the
      dividend payment may be reinvested in future acquisitions

Concurrently, Moody's has assigned a (P)B2 (LGD4) rating to the
new EUR200 million term loan maturing 2023 to be borrowed by ION
Trading Finance Limited.  Moody's has assigned a stable outlook
to ION Trading Finance Limited.  The proceeds of the new facility
will be applied to repay EUR37.5 million of Lab49 debt rolled
over as part of the acquisition in Q1 2016, fund a EUR154.3
million dividend to shareholders and to pay transaction fees and
expenses. Upon a successful conclusion to the transaction, all
credit facilities will be transferred to ION Trading Finance
Limited as the borrower.

Moody's issues provisional ratings in advance of the completion
of the transaction 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 definitive rating to the new term loan.  A definitive
rating may differ from a provisional rating.

                         RATINGS RATIONALE

The rating action was prompted by the announcement of a
refinancing transaction by the company.  The request includes a 2
year- extension of the existing term loans and RCF to 2023 and
2021 respectively and changes in certain terms and conditions of
the credit facility.  Moody's understands that the proceeds from
the proposed dividend (to be paid to parent ION Investment
Corporation S.a.r.l) may be used by the parent for potential
acquisitions.

ION Trading's B2 CFR reflects (1) continuous strong operating
performance with high cash flow generation; (2) good revenue
visibility as a result of long-term contracts and high customer
retention rates; (3) positive market dynamics supported by
increased outsourcing trends, regulatory changes and complexity
of products; and (4) the company's leading market position and
high margins within a fragmented industry segment.

The ratings remain constrained by: (1) the relatively high
leverage, increased by 0.7x to 5.2x following the proposed
transaction (based on Moody's adjusted gross debt to EBITDA
before capitalization of software development costs and including
a full-year EBITDA contribution from Lab49), as at the end of
March 2016 (4.6x after the benefit of the capitalization of
software development costs); (2) dependence on a narrow range of
software and services for fixed income electronic trading
activities; (3) high customer concentration with 39% of 2015
revenues generated by its top 10 clients; and (4) more aggressive
than expected financial policy.

Having adopted a more conservative financial policy in 2015,
focused on deleveraging through debt prepayments, the proposed
transaction marks a turnaround in ION Trading's approach towards
dividends and debt-financed acquisitions.

ION Trading demonstrated strong performance in FY2015, with
reported revenue and EBITDA growing by 8.2% and 9.7% respectively
compared to FY2014.  This was driven largely by increased sales
of ION Trading's products to existing customers, cross-selling as
well as a significant increase in non-recurring income from new
product launches and large projects.  Strong performance
continued into Q1 2016 with sales up by 30% versus a year prior,
mainly due to the acquisition of Lab49 that closed in Q1 2016 and
organic growth.  The acquisition of Lab49 will further boost non-
recurring revenues and enable ION Trading to benefit from the
increased professional services activity.

During the past 10 years, the Company completed ten acquisitions
for an aggregate value of over EUR430 million and Moody's expects
this trend to continue.  Moody's also anticipates that a
significant part of the new incremental loan proceeds will be
used to fund those acquisitions.

ION Trading's liquidity is good, consisting of EUR49.5 million
cash as at the end of March 2016 and full availability under its
USD40 million RCF.  The liquidity is supported by strong free
cash flow generation of EUR64 million for FY2015 resulting from
its moderate capex requirements and negative working capital.
The terms and conditions of the credit facilities contain a
single springing RCF covenant.  The request contains a number of
issuer-friendly amendments to the existing terms and conditions
including a 2-year maturity extension, springing RCF covenant
staying flat at 6.25x if more than 35% of RCF is utilized, the
introduction of a restricted payment leverage test of 4.0x and
incremental facilities subject to a maximum net leverage test of
4.75x, in addition to the EUR200 million freebie basket.

The (P)B2 rating on the new facility is in line with the existing
facilities rating and CFR, reflecting their pari-passu status and
a single class of debt respectively.

The stable outlook reflects Moody's expectation that the company
will maintain adjusted leverage substantially below 6.0x and will
sustain its current operating performance.  It also reflects the
expectation that the proposed transaction is a temporary
deviation from the company's more conservative financial policy
focused on further voluntary debt prepayments, with no
shareholder distributions and limited debt funded acquisitions.

Positive ratings pressure could develop if ION Trading reduces
adjusted leverage towards 4.5x (before capitalization of software
development costs) on a sustainable basis, while preserving its
strong margins and FCF to debt ratio above 10%, and returns to a
more conservative financial policy.

Negative ratings pressure could arise if (1) leverage increases
above 6.0x (before capitalization of software development costs),
(2) margins weaken, (3) FCF to debt falls substantially below 5%
for a prolonged period of time, (4) liquidity profile
deteriorates, or (5) the company does not return to a more
conservative financial policy, either in terms of acquisitions or
shareholder returns.

The principal methodology used in these ratings was Software
Industry published in December 2015.

ION Trading is a global provider of trading software and services
for the fixed-income, currencies and commodities markets.  It
sells its solutions primarily to banks, but also to hedge funds,
brokers and other financial institutions.  For the year ended
Dec. 31, 2015, the group had revenues of EUR378 million (pro-
forma for the acquisition of Lab49) and company adjusted EBITDA
of EUR176 million (before capitalization of software development
costs).  ION Trading is owned by ION Investment Group, a
privately owned global provider of trading software and services
for the fixed-income, currencies and commodities market, in which
the Carlyle Group has a stake.


PULS CDO 2007-1: S&P Lowers Ratings on 3 Note Classes to 'D (sf)'
-----------------------------------------------------------------
S&P Global Ratings lowered to 'D (sf)' from 'CC (sf)' its credit
ratings on PULS CDO 2007-1 Ltd.'s class A-1, A-2B, and E notes.
At the same time, S&P has affirmed its 'D (sf)' ratings on the
class B, C, and D notes.

The rating actions reflect the issuer's failure to repay the
remaining note principal balance on July 25, 2016, the final
maturity date.

S&P's ratings on the class A-1, A-2B, B, C, and D notes address
the timely payment of interest and the repayment of principal no
later than the legal final maturity date.  S&P's rating on the
class E notes addresses the ultimate payment of interest and the
repayment of principal no later than the legal final maturity.
The issuer did not fully repay the notes on July 25, 2016.

"In our previous review of the transaction on June 8, 2016, we
lowered the ratings on the class A-1 and A-2B notes to 'CC (sf)'
from 'CCC- (sf)' reflecting our view that the notes were highly
vulnerable to a payment default at final maturity.  All of the
assets in the underlying portfolio were in default and the only
source of cash flows for the rated notes was the recovery
proceeds realized on these assets.  As the class A-1, A-2B, and E
notes failed to repay principal on the final maturity date, we
have lowered to 'D (sf)' from 'CC (sf)' our ratings on these
notes," S&P said.

S&P has affirmed its 'D (sf)' ratings on the class B, C, and D
notes as the issuer failed to repay principal on the notes.  The
notes were rated 'D (sf)' because they missed their interest
payments.

PULS CDO 2007-1 is a collateralized debt obligation (CDO)
transaction backed by a static portfolio of senior unsecured and
subordinated bonds issued by German, Austrian, and Swiss small
and midsize enterprises (SMEs).

RATINGS LIST

Class             Rating
            To             From

PULS CDO 2007-1 Ltd.
EUR300 Million Senior And Subordinated Deferrable Floating-Rate
Notes Series 2007-1

Ratings Lowered

A-1         D (sf)         CC (sf)
A-2B        D (sf)         CC (sf)
E           D (sf)         CC (sf)

Ratings Affirmed

B           D (sf)
C           D (sf)
D           D (sf)


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



BANKRUPTCY NR. 17/2014: Oct. 4 Bid Deadline Set for Assets
----------------------------------------------------------
The liquidator Dr. Ilaria Vaghi of Bankruptcy Nr. 17/2014 (Court
of Lodi) put up for sale the following properties:

Tranche 1: Foundry department: business branch of the foundry
department object of lease of a business contract, based in Lodi,
via dell'Industria 20.  Price lowered base EUR1,178,500.

Tranche 2: Chemical department: business branch of the foundry
department in lease, based in Pieve Fissiraga - LO, via
Tavernelle 15.  Price lowered base EUR1,700,000.

More details on how to participate and expert estimate are
available at www.asteannunci.it

The deadline for submission of offers is on October 4, 2016, at
12:00 a.m.

The sale is scheduled for October 5, 2016 at 11:45 a.m.


DIAPHORA1 FUND: September 28 Bid Deadline Set for Properties
------------------------------------------------------------
Diaphora1 Fund, in liquidation, pursuant to Art. 57 TUF, put up
for sale the following properties:

Lot A1: Pomezia (RM), in "Sughereta", development areas to be
used for the construction of residential buildings and business
surface areas, listed in the Land Registry of the Municipality of
Pomezia (RM), Sheet 30 - parcels no. 959, 1005, 1006.  Starting
price EUR9,684,000,000 in addition to applicable tax.

Lot A2: Pomezia (RM) in "Sughereta", building areas to be used
for the construction of residential towers, residential multi-
storey buildings and buildings for business purposes, listed in
the Land Registry of the Municipality of Pomezia (RM), Sheet 30 -
parcels no. 864, 867, 1007-1013, 1017-1018.  Starting price
EUR46,235,000,000 in addition to applicable tax.

Lot A3: Pomezia (RM), in "Sughereta", development areas to be
used for the construction of residential multi-storey buildings
and  residential towers, listed in the Land Registry of the
Municipality of Pomezia (RM), Sheet 30 - parcels no. 1000, 1001,
999.  Starting price EUR9,300,000 in addition to applicable tax.

Bid deadline: 12:00 a.m. on September 28, 2016.

Bids to submitted at the office of Notary Federico Basile in
Viale Liegi 1, Rome.

Date of sale: 12:00 a.m. on September 29, 2016, at the office of
the Notary.

Details, procedures and sale regulations are available on
www.liquidagest.it

This notice of sale is published on specialized websites and in
daily newspapers.


GOLDEN BAR: Moody's Assigns Ba3 Rating to Cl. C-2016-1 Notes
------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to the
ABS notes issued by Golden Bar (Securitisation) S.r.l.  These
definitive ratings have been assigned:

  EUR 1,066.0 mil. Class A-2016-1 Asset Backed Variable Funding
   Fixed Rate Notes due 2040 (EUR 902.0 mil. issued at closing),
   Assigned A2(sf)
  EUR32.5 mil. Class B-2016-1 Asset Backed Variable Funding Fixed
   Rate Notes due 2040, Assigned Baa3(sf) (27.5 mil. issued at
   closing)
  EUR 45.5 mil. Class C-2016-1 Asset Backed Variable Funding
   Fixed Rate Notes due 2040, Assigned Ba3(sf) (38.5 mil. issued
   at closing)
  EUR 65.0 mil. Class D-2016-1 Asset Backed Variable Funding
   Fixed Rate Notes due 2040, Assigned B2(sf) (55.0 mil. issued
   at closing)

Moody's has not assigned ratings to the Class E and Junior Notes
which are also issued.

The notes are fully issued and subscribed up to the program limit
at closing.  However subscription payments have initially only
been made for approximately 85% of the issued amount.  The
noteholders may make additional subscription payments up to the
program limit of EUR1,300 mil. as defined in the deal
documentation, in order to fund subsequent portfolios offered to
the Issuer.

                         RATINGS RATIONALE

The subject transaction is a cash securitization of consumer
loans, specifically Cessione del Quinto loans and Delegazione di
Pagamento loans ("DP") extended to borrowers resident in Italy by
Santander Consumer Bank S.p.A. (A3; (P)P-2).  Under a CDQ Loan,
the debtor assigns to the lender one fifth of his net monthly
salary or pension to cover his loan obligations; loans are
collateralized by a maximum of 20% of the monthly salary of the
employee/pension (net of taxes), plus any eventual severance pay
treatment.  In addition, an obligatory insurance policy protects
against loss of job, resignation and death of the debtor.  DP
loans are similar to CDQ loans in that they are also consumer
loans collateralized by a monthly salary, and benefit from
insurance protection as well as offering potential recourse to
the employer and the TFR.  However, they differ in the following
respects: (a) The monthly instalment can represent up to half of
the borrower's net salary, (b) the lender has a direct claim
towards the employer only if the employer expressly accepts the
delegation of payment, (c) the TFR is not automatically attached
in favor of the lender unless the debtor and employer expressly
provide their written consent, (d) if the employer becomes
insolvent, the payment delegation is automatically terminated,
(e) the DP can be terminated in the event of insolvency of the
originator, and (f) the quota of salary delegated does not
benefit of the exemption from seizure and attachment proceedings
as for CDQ loans.

The initial portfolio is made up of 75,843 loans for a total
portfolio balance of EUR1,100 mil.  As stated previously, the
transaction envisions increasing the Variable Funding Notes to
fund additional portfolio purchases during the ramp-up period,
the portfolio can increase from that of the initial portfolio at
closing (with a maximum theoretical portfolio size of EUR
1,300mn) and will be revolving for nearly four years.  Hence, the
most important credit aspects are a dynamic credit enhancement
mechanism, eligibility criteria and triggers during the revolving
period.

Portfolio characteristics include DP loans which may not exceed
30%, while CDQ loans (including those to pensioners) must
represent at least 70% of the portfolio.  The portfolio is
granular from an individual loan perspective with the top 1 and
top 10 obligor exposures at 0.009% and 0.086%, respectively.
However, the portfolio is concentrated in employees working for
the Italian public sector, as well as pensioners receiving
payments from the Italian Social Security Institute.  At closing,
17.4% of the obligors are pensioners/retired, and the share could
increase to 30%.  In total 83.6% of the obligors are paid by
Italian public sector entities (central state administration,
INPS, healthcare authorities, military and police forces, etc.)
and the share could increase to 100%. 4.9% are employed in the
para-public sector (for example Poste Italiane).  The employer
plays a key part in the CDQ and DP loan product (from an
operational, legal and credit aspect) and hence was part of
Moody's analysis.

This deal benefits from credit strengths, such as strong
performance in the previous Golden Bar 2012-2 CDQ transaction,
loan protections through salary/TFR assignments, eligibility
criteria and insurance coverage.

Moody's however notes that the transaction features a number of
credit weaknesses, the most important of which is an exposure to
eligible investments, which limits the rating of the senior
tranche to A2.  Further weaknesses include high historical
defaults in the vintage data, a long revolving period of nearly
four years, and exposure to commingling risk as well as
operational risk, which is partially mitigated by the appointment
of a backup servicer facilitator at closing.

With the large share of public sector employment the portfolio
concentration in terms of employers is higher than usually seen
in a typical consumer loan transaction.  Moody's has treated this
in its quantitative assessment by considering the likely high
exposure to the public sector, and incorporating a higher
volatility assumption to reflect the level of systematic risk
implied by this exposure.

One of the particular aspects of CDQ and DP products is that all
the loans are partially guaranteed by insurance coverage.  Hence,
the transaction is exposed to potential default risk of insurance
companies in honoring insurance claims.  There are specific
concentrations to insurance companies in the transaction.  The
top insurer (CF Assicurazioni (NR)) provides coverage to 49.2% of
the individual loans in the portfolio.  There are limits on
Investment Grade insurance exposures to 40% on an individual
basis and non-Investment Grade insurance exposures to 5% in
aggregate.  However, six insurers (some of which are not rated)
are currently excluded from these portfolio limits, increasing
the potential concentration risk for the insurers in the pool.
These concentration limits, coupled with a nearly 4 year ramp up
period, during which new portfolios will be added introduces
additional uncertainty to the transaction in terms of increased
concentration risk relative to the level at closing.  Certain
eligibility criteria and triggers are in place to mitigate this
risk.  These characteristics, amongst others, were considered in
Moody's quantitative analysis and ratings.

                      MAIN MODEL ASSUMPTIONS

Moody's determined the portfolio lifetime expected defaults of
13%, expected recoveries of 75% when the insurer has not
defaulted and Aa2 portfolio credit enhancement ("PCE") of 28%
related to borrower receivables.  The expected defaults and
recoveries capture our expectations of performance considering
the current economic outlook, while the PCE captures the loss we
expect the portfolio to suffer in the event of a severe recession
scenario. Expected defaults and PCE are parameters used by
Moody's to calibrate its lognormal portfolio default distribution
curve and to associate a probability with each potential future
default scenario.  Moody's also considered the insurance company
exposure in the transaction by analyzing scenarios where one or
more insurance companies default and thereby negatively impact
expected recoveries.  The credit quality of the insurance
entities was used to weight these different scenarios in order to
derive a joint loss distribution, then used in Moody's cash flow
model ABSROM.

Portfolio expected defaults of 13% are higher than the Italian
CDQ ABS average and are based on Moody's assessment of the pool
taking into account (i) historic performance of the loan book of
the originator, (ii) benchmark transactions, and (iii) other
qualitative considerations, such as the economic outlook for
Italy.

Portfolio expected recoveries of 75% are in line with the Italian
CDQ ABS average and are based on Moody's assessment of the pool
taking into account (i) historic performance of the loan book of
the originator, (ii) benchmark transactions, and (iii) other
qualitative considerations.

PCE of 28% is higher than the Italian CDQ ABS average and is
based on Moody's assessment of the pool taking into account the
relative ranking to originator peers in the Italian CDQ market as
well as the length of the revolving period combined with the
concentration limitations for the revolving pools.

                           METHODOLOGY

The principal methodology used in this rating was Moody's
Approach to Rating Consumer Loan-Backed ABS published in
September 2015. The ratings address the expected loss posed to
investors by the legal final maturity of the notes.  In Moody's
opinion, the structure allows for timely payment of interest and
ultimate payment of principal with respect to the bonds by legal
final maturity.  Moody's ratings address only the credit risks
associated with the transaction.  Other non-credit risks have not
been addressed but may have a significant effect on yield to
investors.

  FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE
RATING

Factors that may cause a downgrade of the ratings include a
decline in the overall performance of the pool according to
Moody's expectations or a significant deterioration of the credit
profile of the counterparties including the insurance companies
not covered due to structural features.  Factors that may cause
an upgrade of the rating include a significantly better than
expected performance of the pool and/or significant positive
overall credit quality of the public employer concentrations,
together with an increase in credit enhancement of notes.

                    LOSS AND CASH FLOW ANALYSIS

Moody's used its cash flow model Moody's ABSROM as part of its
quantitative analysis of the transaction.  Moody's ABSROM model
enables users to model various features of a standard European
ABS transaction - including the specifics of the loss
distribution of the assets, their portfolio amortization profile,
yield as well as the specific priority of payments, early
amortization triggers and reserve funds on the liability side of
the ABS structure.

                         STRESS SCENARIOS

Moody's key portfolio model inputs are Moody's cumulative default
rate assumption and the recovery rate.  Moody's tested various
scenarios derived from different combinations of mean default
rate (i.e. adding a stress on the expected average portfolio
quality) and recovery rate.  For example, Moody's tested for the
mean default rate: 13% as base case ranging to 15% and for the
recovery rate (assuming no insurance default) 75% as base case
ranging to 55%.

At the time the rating was assigned, the model output indicated
that Class A would have achieved Baa1 output if the cumulative
mean default probability had been as high as 15%, and the
recovery rate as low as 55% (all other factors being constant).
Moody's Parameter Sensitivities provide a quantitative / model-
indicated calculation of the number of rating notches that a
Moody's-rated structured finance security may vary if certain
input parameters would change.  The analysis assumes that the
deal has not aged.  It is not intended to measure how the rating
of the security might migrate over time, but rather, how the
initial rating of the security might have differed if the two
parameters within a given sector that have the greatest rating
impact were varied.


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


ALGECO SCOTSMAN: Moody's Continues to Review for Downgrade B3 CFR
-----------------------------------------------------------------
Moody's Investors Service continues its review for downgrade of
Algeco Scotsman Global S.A.R.L.'s corporate family rating of B3
and Algeco Scotsman Global Finance Plc's senior secured rating of
B3 and senior unsecured rating of Caa2.  The review was initiated
on March 17, after Algeco's announcement that it had entered into
a conditional agreement with Modular Space Corporation
("ModSpace", senior secured rating Caa2 on review direction
uncertain), whereby Algeco will sell its North American modular
space business to ModSpace.

                           RATINGS RATIONALE

Moody's is continuing its review to assess the effect of the
planned transaction on Algeco's credit profile and will conclude
the review upon the transaction close, expected to occur by the
end of the third quarter of 2016.

Upon the transaction close, Algeco will own approximately one-
half of the equity in ModSpace, subject to dilution from a
potential equity raise, and existing ModSpace shareholders will
own the remainder.  Algeco will also receive additional cash
consideration of an as yet undisclosed amount, reflecting its
relatively larger business comprised of 80,000 modular space
units compared to ModSpace's fleet of approximately 70,000 units.
Algeco intends to use some of the transaction proceeds to pay a
portion of the outstanding balance under its asset based lending
(ABL) facility.

Moody's will evaluate the future profitability of Algeco's
remaining franchise, its pro-forma leverage and ability to de-
lever, as well as its liquidity profile.  Moody's will also
evaluate the capital structure, liquidity, operating efficiency,
and expected earnings of ModSpace, in which Algeco will own an
approximately 50% equity stake.  With the transaction, a
substantial part of Algeco's assets will be contributed to
ModSpace's entity and therefore will no longer be available to
Algeco's creditors.  However, the value of Algeco's equity stake
in ModSpace, although illiquid, will provide support to the
company's creditors.

Algeco's ratings would be downgraded if Moody's determines that
Algeco's profitability will not meaningfully improve from current
levels and if it determines that the company will not be able to
de-lever to at least 6x, based on Moody's calculations, in the
next four quarters following the transaction close.  Ratings
would also be downgraded if Algeco's liquidity profile
deteriorates post-merger.

Ratings could be confirmed if Moody's concludes that Algeco will
be able to reduce its leverage to at least 6x in the next year
after the merger, if it demonstrates a path to improved
profitability, and if it improves its liquidity profile for the
remaining businesses.

The principal methodology used in these ratings/analysis was
Finance Companies published in October 2015.


FLINT GROUP: S&P Lowers Corporate Credit Rating to 'B'
------------------------------------------------------
S&P Global Ratings said that it has lowered its long-term
corporate credit rating on Luxembourg-headquartered ink and print
consumables provider Flint Group (ColourOZ Holdco Sarl) to 'B'
from 'B+'.

S&P also lowered its issue ratings on Flint's first-lien debt and
revolving credit facility (RCF) to 'B' from 'B+'.  The recovery
rating remains at '3', indicating S&P's expectation of recovery
in the lower half of the 50%-70% range in the event of a default.

At the same time, S&P lowered its issue rating on the second-lien
debt to 'CCC+' from 'B-'.  The recovery rating remains at '6',
indicating S&P's expectation of negligible recovery (0%-10%) in a
default scenario.

"The downgrade reflects our expectation that Flint's debt will
stay above our previous projections, and that the company will
continue to use its significant free operating cash flow (FOCF)
to fund bolt-on acquisitions rather than reduce debt.  After
acquiring Xeikon at the end of 2015 for EUR228 million, Flint
announced the purchase of four companies for a total of
EUR152 million.  The company's S&P Global Ratings-adjusted debt
to EBITDA reached 7.4x at year-end 2015 (6.9x pro forma the
acquisition of Xeikon) and will stay above 6x in 2016 in S&P's
base-case scenario, significantly higher than the 5.5x
commensurate with a 'B+' rating.

S&P expects Flint will continue its external growth strategy
focused on bolt-on acquisitions.  Combined with organic growth in
the packaging segment, this should lead to higher EBITDA despite
the structural decline in the print media industry, supporting
S&P's assessment of Flint's business risk profile as fair.  On
the negative side, such a strategy does not allow for
deleveraging, even with solid FOCF generation, with FOCF to debt
of about 5.2%, and funds from operations (FFO) covering cash
interest 3.0x.

In addition to the structural decline in print media, Flint's
business risk profile is constrained by the industry's fragmented
and highly competitive nature, in S&P's view.  S&P views print-
media end markets as quite diverse, with commercial printing,
advertising, and magazines accounting for more than 50%, followed
by newspapers, catalogues, books, and directories.  Although S&P
sees substitution risk arising from the development of digital
technologies as gradual, S&P believes the biggest shift has
likely already occurred, with digital printing staying at low
volumes.

These weaknesses are partly offset by Flint's successful growth
strategy and strong market positions in print media and
packaging. S&P notes that Flint's management has been very
successful in maintaining its profits in print media, thanks to
the strengthening of its leading market shares and ongoing
restructuring initiatives.  The other key supportive factor is
the company's increasing focus on the packaging business, which
now accounts for more than 60% of EBITDA, pro forma the
acquisitions.

The stable outlook reflects S&P's expectation of continued
gradual strengthening of EBITDA, supported by organic growth in
2016 and bolt-on acquisitions that combined with solid FOCF
generation should allow the company to keep debt to EBITDA at
5.5x-6.3x over the next two years.

S&P could lower the rating if sizable debt-financed acquisitions
pushed leverage well above 6.0x without near-term prospects of
recovery, or if the company's liquidity deteriorated.  Although
less likely in S&P's view, it could also take a negative rating
action if the company's growth strategy were to become less
successful, leading to declining EBITDA.

S&P sees upside as currently unlikely, given the company's
ambitious growth strategy, which could require further bolt-on
acquisitions and therefore prevent consistent deleveraging.
Should leverage fall sustainably below 5.5x and the company's
financial policy appear supportive, this could unlock upside
potential for the rating.


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


* NETHERLANDS: Number of Company Bankruptcies Down to 367 in July
-----------------------------------------------------------------
DutchNews.nl reports that the national statistics office CBS said
on Aug. 8 the number of Dutch firms going bust went down in July,
continuing a downward trend which started in May 2013.

Last month, 367 firms were closed down, compared with 441 in the
year earlier period, DutchNews.nl discloses.  So far this year,
bankruptcies are down 20% on a year ago, DutchNews.nl relates.

According to DutchNews.nl, CBS said trading, financial service
and business services were most likely to go bust.  The CBS
figures do not include one-man operated firms, DutchNews.nl
notes.


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


ADM FARM: Insolvency House Puts Up Assets for Sale
--------------------------------------------------
Romania Insider reports that local insolvency house CITR has put
up for sale warehouses, plots, apartments and cars owned by the
pharma distributor ADM Farm, which is under insolvency.

The value of the assets amounts to EUR5.5 million, without VAT,
Romania Insider relays, citing local Profit.ro.  The most
valuable asset is a 10,200 square meter land plot located in
Ilfov county, which sells for EUR3.5 million, Romania Insider
notes.

ADM Farm became insolvent last year, Romania Insider recounts.
The company has debts of EUR56 million, Romania Insider
discloses.

In 2014, the company had a turnover of EUR101 million and EUR10
million losses, Romania Insider relates.

ADM Farm was one of the largest pharma distributors in the local
market.


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


GRUPO ISOLUX: Bankruptcy Credit Occurred, ISDA Committee Says
-------------------------------------------------------------
Charles Daly at Bloomberg News reports that the International
Swaps and Derivatives Association, Inc.'s determinations
committee has resolved that a bankruptcy credit event occurred
with respect to Grupo Isolux Corsan Finance, which applies to
2014 and "updated 2003" credit derivative transactions.

The decision follows the filing by Isolux on July 28 of a
petition for suspension of payments (a moratorium) in the
Amsterdam District Court, Bloomberg relates.

The date of the bankruptcy credit event is July 28, Bloomberg
discloses.

The Committee also resolved to hold an auction in respect of the
2014 transactions this month, Bloomberg notes.

Grupo Isolux Corsan SA is a Spanish construction company.


IM SABADELL: Moody's Assigns B2 Rating to Series B Notes
--------------------------------------------------------
Moody's Investors Service has assigned these definitive ratings
to the debts issued by IM Sabadell Pyme 10, Fondo De
Titulizacion:

  EUR1,448.1 mil. Series A Notes, Definitive Rating Assigned
   Aa3 (sf)
  EUR301.9 mil. Series B Notes, Definitive Rating Assigned
   B2 (sf)

IM SABADELL PYME 10, FONDO DE TITULIZACION is a securitization of
standard loans granted by Banco Sabadell, S.A. (Long Term Deposit
Rating: Baa3 Not on Watch /Short Term Deposit Rating: P-3 Not on
Watch; Outlook: Stable) to small and medium-sized enterprises
(SMEs) and self-employed individuals.

The Fondo -- a newly formed limited-liability entity incorporated
under the laws of Spain -- has issued two series of rated notes.
Banco Sabadell, S.A. acts as servicer of the loans for the Fondo,
while Intermoney Titulizacion S.G.F.T., S.A. is the management
company (Gestora) of the Fondo.

                        RATINGS RATIONALE

The ratings are primarily based on the credit quality of the
portfolio, its diversity, the structural features of the
transaction and its legal integrity.

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

Portfolio characteristics and key collateral assumptions:
As of July 2016, the audited provisional asset pool of underlying
assets was composed of a portfolio of 18,060 contracts granted to
SMEs and self-employed individuals located in Spain.  The assets
were originated mainly between 2013 and 2015 and have a weighted
average seasoning of 2.8 years and a weighted average remaining
term of 7.3 years. Around 34.0% of the portfolio is secured by
first-lien mortgage guarantees over different types of
properties. Geographically, the pool is concentrated mostly in
Catalonia (33.6%) and Madrid (17.3%).  At closing, any loan in
arrears for more than 30 days will be excluded from the final
pool.

In Moody's view, the strong credit positive features of this deal
include, among others: (i) a pool with a high seasoning of 2.8
years; (ii) a granular pool (the effective number of obligors
over 2,000); and (iii) a simple structure.  However, the
transaction has several challenging features: (i) 15.7%
concentration in the Construction and Building sector; (ii) no
interest rate hedge mechanism in place; and (iii) a strong
linkage to Banco Sabadell, S.A. related to its originator,
servicer and issuer account bank roles.  These characteristics
were reflected in Moody's analysis and provisional ratings, where
several simulations tested the available credit enhancement and
4.75% reserve fund to cover potential shortfalls in interest or
principal envisioned in the transaction structure.

In its quantitative assessment, Moody's assumed a mean default
rate of 10.5%, a coefficient of variation of 47.6%, a recovery
rate of 50.0% which correspond to a portfolio credit enhancement
of 19.0%.

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

Factors or circumstances that could lead to a downgrade of the
ratings affected by the action would be (1) worse-than-expected
performance of the underlying collateral; (2) an increase in
counterparty risk, such as a downgrade of the rating of Banco
Sabadell, S.A.; and (3) an increase in Spain's country risk.

Factors or circumstances that could lead to an upgrade of the
ratings affected by today's action would be (1) the better-than-
expected performance of the underlying assets; (2) a decline in
counterparty risk; and (3) a decline in Spain's country risk.

Loss and Cash Flow Analysis:

In rating this transaction, Moody's used ABSROM to model the cash
flows and determine the loss for each tranche.  The cash flow
model evaluates all default scenarios that are then weighted
considering the probabilities of the Inverse Normal distribution
assumed for the portfolio default rate.  On the recovery side
Moody's assumes a stochastic (normal) recovery distribution which
is correlated to the default distribution.  In each default
scenario, the corresponding loss for each class of notes is
calculated given the incoming cash flows from the assets and the
outgoing payments to third parties and noteholders.  Therefore,
the expected loss or EL for each tranche is the sum product of
(i) the probability of occurrence of each default scenario; and
(ii) the loss derived from the cash flow model in each default
scenario for each tranche.  As such, Moody's analysis encompasses
the assessment of stress scenarios.

Stress Scenarios:

Moody's also tested other set of assumptions under its Parameter
Sensitivities analysis.  For instance, if the assumed default
probability of 10.5% used in determining the initial rating was
changed to 13.6% and the recovery rate of 50% was changed to 45%,
the model-indicated rating for Series A and Series B of Aa3(sf)
and B2(sf) would be Baa1(sf) and Caa2(sf) respectively.

Principal Methodology:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating SME Balance Sheet Securitizations"
published in October 2015.


* Fitch Affirms 7 Spanish Covered Bond Programs; Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed six Spanish mortgage covered bond
programs (Cedulas Hipotecarias, CH) and one Spanish public sector
covered bond program (Cedulas Territoriales, CT) as follows:

   -- Abanca Corporacion Bancaria, S.A.'s (Abanca;
      BB+/Stable/bb+) CH at 'BBB+'

   -- Bankia, S.A.'s (Bankia; BBB-/Stable/bbb-) CH at 'A'

   -- Banco Mare Nostrum S.A.'s (BMN; BB/Stable/bb) CH at 'BBB+'

   -- Caja Laboral Popular Cooperativa de Credito's (CLCC;
      BBB+/Stable/bbb+) CH at 'A+'

   -- Cajamar Caja Rural, Sociedad Cooperativa de Credito's
      (Cajamar; BB-/Stable) CH at 'BBB' and CT at 'BBB-'

   -- Banco Santander, S.A's (Santander; A-/Stable/a-) CH at 'AA'

The Outlook on the ratings of all programs is Stable, reflecting
the Stable Outlook on the banks' Issuer Default Ratings (IDR).

KEY RATING DRIVERS

All six Spanish CH programs have an IDR uplift of at least one
notch, reflecting the covered bonds' exemption from bail-in and
Fitch's view that Spain is a covered bond-intensive jurisdiction
for mortgage covered bonds. In the case of Bankia and Santander,
the issuers are considered systemically important in their
domestic market, so an additional IDR uplift is granted to these
programs. Cajamar's CT program does not benefit from an IDR
uplift as Spain is not considered by Fitch as a public sector
covered bond-intensive jurisdiction.

Fitch continues to assign an overall Discontinuity Cap (D-Cap)
assessment of 0 notches (full discontinuity risk) to all Spanish
CH programs and the CT program it rates. This is driven by the
liquidity gap and systemic risk component, given the hard bullet
profile of the covered bonds and the lack of specific liquidity
protection mechanisms in the Spanish framework to bridge
temporary shortfalls after the recourse to the cover pool has
been enforced. The risk assessments of the other D-Cap components
remain unchanged since the last sector review and are: asset
segregation -- low risk; system alternative management --
moderate high risk; cover pool specific alternative management --
moderate high risk (CH)/ moderate (CT); and privileged
derivatives -- very low.

All Spanish programs benefit from high recovery expectations in
the event of a covered bond default. They have sufficient OC to
support more than 91% recoveries, leading to a two- to three-
notch recovery uplift, depending on whether the tested rating on
a probability of default (PD) basis is in the investment grade or
non-investment grade category.

The breakeven OC for a corresponding rating scenario is largely
driven, for most Spanish CH programs, by the asset disposal loss
component that is influenced by the large maturity mismatches
between assets and liabilities creating heavy refinancing needs
under a liquidation scenario. This component is also influenced
by the high refinancing spreads of 375bps-550bps applied by Fitch
in its analysis of Spanish CHs. The cover pool's credit loss is
also an important contributor to break-even OC and reflects that
the Spanish CH cover pools still contain a fairly high proportion
of commercial and developer loans.

Abanca CH

The rating of Abanca's CH is based on the bank's IDR of 'BB+', an
IDR uplift of one notch, a D-Cap of 0 notches and the 177.2% OC
that Fitch takes into account in its analysis, which provides
more protection than the 49.0% 'BBB+' breakeven OC. This level of
OC is adequate for a two-notch recovery uplift on the CH assumed
to be in default in a 'BBB+' rating scenario.

The 'BBB+' breakeven OC is driven by the asset disposal loss
component of 32.7%, followed by the cover pool's credit loss of
26.0% in a 'BBB+' rating scenario.

Bankia CH

The rating of Bankia's CH is based on the bank's IDR of 'BBB-',
an IDR uplift of two notches, a D-Cap of 0 notches and the 77% OC
that Fitch takes into account in its analysis, which provides
more protection than the 70.0% 'A' breakeven OC. This level of OC
is adequate for a two-notch recovery uplift on the CH assumed to
be in default in a 'A' rating scenario.

The 'A' breakeven OC is driven by the asset disposal loss
component of 42.8%, followed by the cover pool's credit loss of
28.4% in a 'A' rating scenario.

BMN CH

The rating of BMN's CH is based on the bank's IDR of 'BB', an IDR
uplift of one notch, a D-Cap of 0 notches and the 66.7% OC that
Fitch takes into account in its analysis, which provides more
protection than the 44.5% 'BBB+' breakeven OC. This level of OC
is adequate for a three-notch recovery uplift on the CH assumed
to be in default in a 'BBB+' rating scenario.

The 'BBB+' breakeven OC is driven by the asset disposal loss
component of 30.9%, followed by the cover pool's credit loss of
25.5% in a 'BBB+' rating scenario.

CLCC CH

The rating of CLCC's CH is based on the bank's IDR of 'BBB+', an
IDR uplift of one notch, a D-Cap of 0 notches and the 167.5% OC
level that Fitch takes into account in its analysis, which
provides more protection than the 50.0% 'A+' breakeven OC. This
level of OC is adequate for a two-notch recovery uplift on the CH
assumed to be in default in a 'A+' rating scenario.

The 'A+' breakeven OC is driven by the asset disposal loss
component of 34.1%, followed by the cover pool's credit loss of
21.6% in a 'A+' rating scenario.

Cajamar CH

The rating of Cajamar's CH is based on the bank's IDR of 'BB-',
an IDR uplift of one notch, a D-Cap of 0 notches and the 126.7%
OC level that Fitch takes into account in its analysis, which
provides more protection than the 38% 'BBB' breakeven OC. This
level of OC is adequate for a three-notch recovery uplift on the
CH assumed to be in default in a 'BBB' rating scenario.

The 'BBB' breakeven OC is driven by the asset disposal loss
component of 27.8%, followed by the cover pool's credit loss of
26.4% in a 'BBB' rating scenario.

Santander CH

The rating of Santander's CH is based on the bank's IDR of 'A-',
an IDR uplift of two notches, a D-Cap of 0 notches and the 136.2%
OC that Fitch takes into account in its analysis, which provides
more protection than the 74.5% 'AA' breakeven OC. This level of
OC is adequate for a two-notch recovery uplift on the CH in a
'AA' rating default scenario.

The 'AA' breakeven OC is driven by the credit loss component of
46.8%., followed by the asset disposal loss component of 34.4%.

Cajamar CT

The rating of CRU's CT is based on the bank's IDR of 'BB-', an
IDR uplift of 0 notches and a D-Cap of 0 notches and the 42.8% OC
level that Fitch takes into account in its analysis, which is the
legal minimum and is also Fitch's 'BBB-' breakeven OC. This level
of OC is adequate for a three-notch recovery uplift on the CH in
a 'BBB-' rating default scenario.

The 'BBB-' breakeven OC is driven by the asset disposal loss
component of 31.6%, influenced by the high level of refinancing
spreads assumed by Fitch (1,016 bps for a 'BBB-' rating),
followed by the cover pool's credit loss of 17.4% in a 'BBB-'
rating scenario. The weighted average default rate reflects the
large proportion of loans to Spanish municipalities (48.6%), for
which Fitch assumes a 'CCC' rating.

RATING SENSITIVITIES

Abanca Corporacion Bancaria, S.A. (Cedulas Hipotecarias, CH)
The 'BBB+' covered bond rating would be vulnerable to downgrade
if any of the following occurs: (i) the Issuer Default Rating
(IDR) is downgraded by one or more notches to 'BB' or below; or
(ii) the IDR uplift is reduced to zero; or (iii) the
overcollateralization (OC) that Fitch considers in its analysis
decreases below Fitch's 'BBB+' breakeven level of 49.0%.

Bankia, S.A. (CH)

The 'A' covered bond rating would be vulnerable to downgrade if
any of the following occurs: (i) the IDR is downgraded by one or
more notches to 'BB+' or below; or (ii) the IDR uplift is reduced
to one or zero; or (iii) the OC that Fitch considers in its
analysis decreases below Fitch's 'A' breakeven level of 70.0%.

Banco Mare Nostrum S.A. (CH)

The 'BBB+' covered bond rating would be vulnerable to downgrade
if any of the following occurs: (i) the IDR is downgraded by one
or more notches to 'BB-' or below; or (ii) the IDR uplift is
reduced to zero; or (iii) the OC that Fitch considers in its
analysis decreases below Fitch's 'BBB+' breakeven level of 44.5%.

Caja Laboral Popular Cooperativa de Credito (CH)

The 'A+' covered bond rating would be vulnerable to downgrade if
any of the following occurs: (i) the IDR is downgraded by one or
more notches to 'BBB' or below; or (ii) the IDR uplift is reduced
to zero; or (iii) the OC that Fitch considers in its analysis
decreases below Fitch's 'A+' breakeven level of 50.0%.

Cajamar Caja Rural, Sociedad Cooperativa de Credito (CH)

The 'BBB' covered bond rating would be vulnerable to downgrade if
any of the following occurs: (i) the IDR is downgraded by one or
more notches to 'B+' or below; or (ii) the IDR uplift is reduced
to zero; or (iii) the OC that Fitch considers in its analysis
decreases below Fitch's 'BBB' breakeven level of 38.0%.

Banco Santander S.A. (CH)

The 'AA' covered bond rating would be vulnerable to downgrade if
any of the following occurs: (i) the IDR is downgraded by one or
more notches to 'BBB+' or below; or (ii) the IDR uplift is
reduced to one or zero; or (iii) the OC that Fitch considers in
its analysis decreases below Fitch's 'AA' breakeven level of
74.5%.

Cajamar Cajarural, Sociedad Cooperativa de Credito (Cedulas
Territoriales, CT)

The 'BBB-' covered bond rating would be vulnerable to downgrade
if any of the following occurs: (i) the IDR is downgraded by one
or more notches to 'B+' or below.

If the OC that Fitch considers in its analysis drops to the legal
minimum requirement of 25% for CH, it would not be sufficient to
allow 91% recoveries on any of the Spanish CH programs. As a
result, the covered bond rating would likely be downgraded by at
least one notch because this level of OC would limit the covered
bond rating to one notch above the IDR as adjusted by the IDR
uplift. The relied-upon OC of the CT rated by Fitch is already at
the legal minimum of 42.8% as the issuer's Short-Term rating is
'B' and Fitch views the program as dormant.

The Fitch breakeven OC for the covered bond rating will be
affected, among others, by the profile of the cover assets
relative to outstanding covered bonds, which can change over
time, even in the absence of new issuance. Therefore the
breakeven OC to maintain the covered bond rating cannot be
assumed to remain stable over time.


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


BHS GROUP: Sir Philip Urged to Cover GBP700MM Pension Deficit
-------------------------------------------------------------
Pippa Crerar at Evening Standard reports that Sir Philip Green
came under renewed pressure on Aug. 8 to sign a GBP700 million
check to cover the pension liabilities of collapsed firm BHS.

According to Evening Standard, Iain Wright, chairman of the
Commons business committee, said it was time for the billionaire
tycoon to "do the right thing" and support former staff whose
pensions are under threat.  The Labour MP said he was frustrated
by lack of progress in resolving the pension deficit since Sir
Philip told MPs earlier this summer he would "sort it", Evening
Standard relates.

Sir Philip has come under growing pressure to deal with the
deficit, which is thought to be more than GBP700 million,
although MPs have admitted they have few formal powers to make
him do so, Evening Standard relays.

It comes as the businessman, who sold BHS for GBP1 to formerly
bankrupt Dominic Chappell about a year before the retailer went
into administration, faced calls to be stripped of his
knighthood, Evening Standard notes.

Mr. Wright, as cited by Evening Standard, said: "Philip Green
needs to do the right thing.  The responsibility for BHS,
including the enormous pension scheme deficit, lies with Philip
Green.  It's up to him.  He has got the responsibility to sort it
out."

He also criticized the Pensions Regulator, which is in
preliminary discussions with Sir Philip, for "circling round each
other" like a pair of "punch drunk" boxers without anybody
landing a "decisive blow", Evening Standard discloses.

Sir Philip's starting point is likely to be the GBP350 million it
would cost the Pension Protection Fund to partly compensate
members of the scheme, Evening Standard states.

The Commons Work and Pensions Committee on Aug. 8 called for
evidence on defined benefit pension schemes, following its report
on BHS, Evening Standard relays.

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


EUROHOME UK 2007-1: S&P Raises Rating on Class B1 Notes to B+
-------------------------------------------------------------
S&P Global Ratings raised its credit ratings on Eurohome UK
Mortgages 2007-1 PLC's class A, M2, and B1 notes.  At the same
time, S&P has affirmed its ratings on the class M1 and B2 notes.

The rating actions follow S&P's credit and cash flow analysis of
the transaction using information from the June 2016 investor
report and loan-level data.  S&P's analysis reflects the
application of its U.K. residential mortgage-backed securities
(RMBS) criteria and S&P's current counterparty criteria.

Since S&P's August 2013 review, the weighted-average foreclosure
frequency (WAFF) has decreased.  This decrease is primarily due
to the transaction's increased seasoning and the decline in
arrears. Over the same period, the weighted-average seasoning of
the performing loans has increased to 100 from 78 months.  The
reported total arrears decreased to 11.2% compared with 17.7% at
S&P's previous review.  However, in S&P's credit model it
considered that 15.5% of the portfolio is delinquent to account
for arrears that have previously been capitalized and for the
risk that arrears might increase in the future, considering they
are currently at a historically low levels.

S&P's weighted-average loss severity (WALS) calculations have
increased at the 'AAA' level, but have decreased at all other
rating levels.  Although the transaction has benefitted from the
decrease in the weighted-average current loan-to-value (LTV)
ratio, this has been offset by the increase in S&P's repossession
market-value decline assumptions, which have been greater at the
'AAA' level.

Rating       WAFF     WALS
level         (%)      (%)
AAA          51.5     51.6
AA           39.3     43.7
A            31.6     31.2
BBB          23.5     23.5
BB           15.9     17.9

The reserve fund is at its required level and cannot amortize
because the transaction has breached the cumulative net loss
trigger.  Due to this trigger breach, the transaction does not
meet the pro rata repayment conditions set out in the transaction
documents, so it is paying sequentially for the remainder of its
life.  S&P has modeled it as such in its analysis.

The liquidity facility has not been drawn.  The size of the
liquidity facility was reduced in June 2016, and S&P has
considered this in its cash flow analysis.  The liquidity
facility agreement held with Deutsche Bank AG does not comply
with S&P's current counterparty criteria.  The transaction
documents do not include a strong commitment of the liquidity
provider to replace itself or draw to cash its obligation if S&P
downgrades it to below 'A-1'.  In fact, following S&P's June 9,
2015 downgrade of Deutsche Bank, it failed to take any remedial
actions.  Therefore, in the scenarios where S&P gives benefit to
the liquidity facility, its current counterparty criteria caps
the maximum achievable ratings at the long-term issuer credit
rating (ICR) on Deutsche Bank, 'BBB+ (sf)'.

"Our analysis indicates that the class A, M2, and B1 notes pass
our cash flow stresses at higher rating levels than those
currently assigned.  We have therefore raised our ratings on the
class M2 and B1 notes.  The class A notes are able to withstand
our cash flow stresses at the 'A' rating even without the benefit
of the liquidity facility.  As a result, we have raised to 'A
sf)' from 'BBB+ (sf)' our rating on the class A notes and
delinked them from our long-term ICR on Deutsche Bank.  The
rating on the class A notes is still linked to the ICR of the
swap counterparty, Barclays Bank PLC.  The transaction's swap
documents are not in line with our current counterparty criteria,
but they comply with a previous version.  As a result, our
current counterparty criteria cap the rating on the notes at the
ICR plus one notch on Barclays Bank," S&P said.

S&P's credit and cash flow analysis also indicates that the
available credit enhancement for the class M1 notes is
commensurate with the currently assigned rating.  S&P has
therefore affirmed its 'BBB+ (sf)' rating on the class M1 notes.

S&P has also affirmed its 'B- (sf)' rating on the class B2 notes
as it do not expect these notes to suffer interest shortfalls in
the next one to two years.

S&P's credit stability analysis indicates that the maximum
projected deterioration that it would expect at each rating level
for the one- and three-year horizons, under moderate stress
conditions, is in line with S&P's credit stability criteria.

Eurohome UK Mortgages 2007-1 securitizes U.K. residential
mortgages by Deutsche Bank's U.K. mortgage origination arm, DB
mortgages.  The transaction closed in 2007.

RATINGS LIST

Class             Rating
            To              From

Eurohome UK Mortgages 2007-1 PLC
GBP354.725 Million Mortgage-Backed Floating-Rate Notes Plus An
Overissuance Of Excess-Spread-Backed Floating-Rate Notes

Ratings Raised

A           A (sf)          BBB+ (sf)
M2          BBB- (sf)       BB (sf)
B1          B+ (sf)         B (sf)

Ratings Affirmed

M1          BBB+ (sf)
B2          B- (sf)


GALA ELECTRIC: Moody's Puts B1 CFR on Review for Upgrade
--------------------------------------------------------
Moody's Investors Service has placed on review for possible
upgrade the ratings of UK gaming company Gala Electric Casinos
Plc.  This includes its B1 Corporate Family Rating, the B1-PD
Probability of Default Rating (PDR), the Ba3 rating of the GBP350
million senior secured notes due 2018 (GBP88 million outstanding)
issued by Gala Group Finance Plc and the B3 rating of the GBP275
million senior notes due 2019 (GBP175 million outstanding) issued
by Gala.

The review is prompted by the announcement on 26 July 2016 that
the Competition Markets Authority (CMA) has completed its
analysis on the merger of Gala's betting businesses into
Ladbrokes Plc (Ladbrokes, Ba2 stable).  The CMA's conclusion,
which envisages that the combined entity will dispose at least
350-400 betting shops in order to address any competition
concerns, is in line with both companies' expectations and
therefore the merger is anticipated to go ahead.

                        RATINGS RATIONALE

The rating action reflects that, given Ladbrokes' Ba2 ratings,
Gala's CFR and instrument ratings will likely be rated higher
than they are today once the merger is completed.  Moody's review
for a possible upgrade will focus on the ultimate treatment of
Gala's debt by Ladbrokes, the extent of implied support and
ratings uplift attributable to Ladbrokes and the strategic
direction of Gala post-closing.  The merger, which will likely
complete in the autumn, remains subject to the compliance of the
expected remedies set by the regulator.

Whilst Moody's expects that Gala's outstanding rated debt and the
unrated senior secured bank facilities will be retired prior to
or at closing, Gala's ultimate financial policy and capital
structure going forward still needs to be confirmed.

                  WHAT COULD CHANGE THE RATING UP/DOWN

In light of the action, Moody's anticipates positive rating
pressure following the satisfactory review in conjunction with
the completion of the merger.  Positive pressure on the ratings
could also arise if the company materially improves its operating
performance, with adjusted leverage falling below 4.0x and
meaningful positive free cash flow.  Any potential upgrade would
also include an assessment of the regulatory and tax environment.

Negative pressure could materialize if Moody's adjusted leverage
were to rise above 5.0x on a sustained basis, or the company's
liquidity materially weakened.

List of affected ratings:

On Review for Upgrade:

Issuer: Gala Electric Casinos Plc
  Corporate Family Rating, Placed on review for upgrade,
currently
   B1
  Probability of Default Rating, Placed on review for upgrade,
   currently B1-PD
  Senior Unsecured Regular Bond/Debenture, Placed on review for
   upgrade, currently B3

Issuer: Gala Group Finance Plc
  Senior Secured Regular Bond/Debenture, Placed on review for
   upgrade, currently Ba3

Outlook Actions:

Issuer: Gala Electric Casinos Plc
  Outlook, Changed To Rating Under Review From Stable

Issuer: Gala Group Finance Plc
  Outlook, Changed To Rating Under Review From Stable

                        PRINCIPAL METHODOLOGY

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

Gala Electric Casinos Plc has its registered office in
Nottingham, England.  Through its subsidiaries, it owns and
operates a diversified gaming company, with revenues from
continuing operations of GBP1 billion at fiscal year ending 2015
pro forma for the disposal of its bingo division, and its
business activities are mainly focused in the UK.  Following the
close of a restructuring program in June 2010, funds managed by
the principal investors indirectly hold a majority in Gala
shares: Apollo Global Management, Cerberus Capital Management,
Park Square Capital and Anchorage Capital Partners.


HERCULES PLC: S&P Lowers Rating on Class E Notes to 'D (sf)'
------------------------------------------------------------
S&P Global Ratings lowered to 'D (sf)' from 'CCC (sf)' its credit
rating on HERCULES (ECLIPSE 2006-4) PLC's class E notes.

On the July 2016 interest payment date (IPD), the class E notes
experienced interest shortfalls for the fourth consecutive
quarter.  The transaction continues to experience cash flow
disruptions due to a combination of spread compression between
the loan and the notes, as well as high prior-ranking transaction
costs that, together, have resulted in insufficient funds
available to meet all interest payments due on the notes.

As indicated in the cash manger reports over recent interest
payment dates, the transaction has become more exposed to high
prior-ranking transaction costs, such as special servicing fees,
other loan work-out related fees, and liquidity fees.

S&P's ratings on HERCULES (ECLIPSE 2006-4)'s notes address the
timely payment of interest and repayment of principal not later
than the legal maturity date in October 2018.

With the risk of higher work-out fees, together with further
principal repayments, and the subsequent spread compression
between the loan and the notes, S&P's analysis indicates that the
class E notes will remain vulnerable to ongoing cash flow
disruptions, and is unlikely to be able to repay existing
shortfalls.  Furthermore, this class of notes will likely
experience principal losses under S&P's base-case scenario.

S&P has therefore lowered to 'D (sf)' from 'CCC (sf)' its rating
on the class E notes, in line with S&P's criteria.

HERCULES (ECLIPSE 2006-4) is a true sale transaction that closed
in December 2006 and was backed by a pool of seven loans secured
against U.K. commercial properties.  Four loans have repaid since
closing and the outstanding note balance has reduced to GBP301.4
million, from GBP814.9 million at closing.


LOGISTICS UK 2015: Fitch Affirms 'Bsf' Rating on Class F Notes
--------------------------------------------------------------
Fitch Ratings has affirmed Logistics UK 2015 plc's floating-rate
notes due 2025 as follows:

-- GBP312.6m class A (ISIN XS1255426543) affirmed at 'AAAsf';
   Outlook Stable

-- GBP67.5m class B (ISIN XS1255427194) affirmed at 'AAsf';
   Outlook Stable

-- GBP67.5m class C (ISIN XS1255427350) affirmed at 'Asf';
   Outlook Stable

-- GBP60.8m class D (ISIN XS1255427608) affirmed at 'BBBsf';
   Outlook Stable

-- GBP76m class E (ISIN XS1255428754) affirmed at 'BB-sf';
   Outlook Stable

-- GBP61.8m class F (ISIN XS1259063037) affirmed at 'Bsf';
   Outlook Stable

The transaction is a securitization of 95% of a single GBP680
million commercial real estate loan advanced to entities related
to Blackstone Real Estate Partners by Goldman Sachs Bank USA. The
loan is backed by a portfolio of 42 logistics assets located
throughout the UK (no assets have been sold to date). Fitch
considers the overall standard of the collateral as near prime.
Loan maturity is scheduled for August 2018, although it can be
extended until 2020, subject to meeting performance and hedging
thresholds. The bonds will mature in 2025.

KEY RATING DRIVERS

The affirmation reflects the overall stable performance of the
portfolio as well as the wider logistic real estate markets since
closing in August 2015. There has been tenant turnover as some
occupiers exercised break options, but the high quality and
favorable locations of the majority of the assets means that
vacant space is re-let swiftly. One previously vacant property in
Dagenham has reportedly been let to the Coca Cola Company
(A+/Negative) on a five-year lease. A number of lease extensions
also contribute to the high rate of occupancy.

One tenant has defaulted on its lease. In May, Polestar
(accounting for 5.8% of the rent) entered administration. The
facility in Sheffield is more specialist than most others, and
may take some time to re-let. Fitch has assumed a void of three
years in its analysis.

In February, the issuer announced that the office component in
the Fort Dunlop asset had suffered fire damage and was
subsequently vacated by its tenant. The majority of the property
comprises warehouse space and remains unaffected. Assuming
insurance will cover repair costs and loss of rental income,
Fitch would expect that the property can be fully restored within
a year. Only 0.6% of total rent is affected, which is negligible
in the analysis.

RATING SENSITIVITIES

Fitch expects a full repayment in a 'Bsf' scenario. Should the UK
enter recession, this may provoke a downturn in the UK logistics
market and lead to downgrades.

DUE DILIGENCE USAGE

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

DATA ADEQUACY

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

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

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


                            *********

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

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

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


                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
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members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
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