TCREUR_Public/160816.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Tuesday, August 16, 2016, Vol. 17, No. 161


                            Headlines


B U L G A R I A

BULGARIAN ENERGY: Fitch Affirms IDRs at 'BB-', Outlook Stable


I R E L A N D

TORO EUROPEAN: Fitch Assigns 'B-(EXP)sf' Rating to Class F Notes
TREASURY HOLDINGS: AGC Buys One Spencer Dock for EUR242 Million


I T A L Y

CASAFORTE SRL: Fitch Puts B- Ratings on 2 Notes on Watch Evolving


N E T H E R L A N D S

FORNAX BV: Fitch Lowers Rating on Class E Notes to 'CCCsf'
SAPINDA INVEST: Paid EUR50MM Bond Coupon Interest Six Weeks Late


R U S S I A

SAMARA CITY: Fitch Affirms 'BB+/B' IDRs, Outlook Stable
X5 FINANCE: Fitch Assigns 'BB-' Rating to RUB5-Billion Bonds


S P A I N

IM SABADELL 10: DBRS Finalizes CCC Rating on Series B Notes


U K R A I N E

* UKRAINE: Insolvent Banks' Refinancing Credit Debt Down by 36.5%


U N I T E D   K I N G D O M

IDH FINANCE: Moody's Assigns Caa1 Def. Rating on 2nd Lien Notes
LOWCOSTBEDS: May Enter Insolvency This Week on Lack of Profits
PREMIER OIL: Expects to Unveil Details of Rescue Deal on Thursday
PROVIDENCE INVESTMENT: Jersey IFA Launches Probe Into Sale
SUNNINGDALE CARE: Fails to Pay Workers' Monthly Salaries

ULYSSES: Fitch Maintains 'B-sf' Rating on Class C Notes on RWN


X X X X X X X X

* DBRS Takes Rating Actions on SME Transactions After Update


                            *********


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


BULGARIAN ENERGY: Fitch Affirms IDRs at 'BB-', Outlook Stable
-------------------------------------------------------------
Fitch Ratings has revised Bulgarian Energy Holding EAD's (BEH)
Outlook to Stable from Negative while affirming the Long-Term
Foreign and Local Currency Issuer Default Ratings (IDR) at 'BB-'.
The agency has also affirmed BEH's foreign currency senior
unsecured rating at 'BB-'.

The Outlook revision reflects BEH's improved liquidity position
following the company's recent five-year EUR550 million bond
issue, which allowed BEH to refinance most of its large
short-term debt.

The affirmation reflects BEH group's substantially improved funds
from operations (FFO) in 2015 and 2016, from a low level in 2014,
due to various legislative and regulatory changes implemented
during 2015 and successful renegotiations of power purchase
agreements (PPAs) with two thermal power plants. The ratings are
notched up one level from BEH's standalone rating, reflecting the
group's strong links with the Bulgarian state (BBB-/Stable),
including guarantees for part of the BEH group's debt.

KEY RATING DRIVERS

Improved Liquidity after Bond Issue

The Outlook revision reflects BEH's improved liquidity following
the company's recent bond issue. The issue allowed BEH to
refinance most of its large short-term debt, mainly a bridge loan
of EUR535 million (BGN1 billion) which was repaid in early August
2016. Liquidity is now sufficient to cover short-term debt and
Fitch-projected negative free cash flow (FCF).

"We expect the state to support BEH should the company's
liquidity be insufficient in a scenario of full payment of the
arbitration amount ordered by an arbitration court in June 2016
in relation to the terminated Belene nuclear power plant
project," Fitch said.

Following the bond issue and bridge loan repayment, the next
large debt maturity is in November 2018 when the EUR500 million
bond (BGN1 billion) issued in 2013 matures. "We expect BEH to
start the bond refinancing process well ahead of maturity," Fitch
said.

NEK's Improved Financial Position

The affirmation reflects the BEH group's substantially improved
cash flow generation in 2015, after weak results for 2014. This
is largely due to a narrowed power tariff deficit at BEH's
subsidiary Natsionalna Elektricheska Kompania EAD (NEK), a public
supplier of electricity in Bulgaria, following a number of
legislative and regulatory changes implemented during 2015.

"We expect NEK's cash flows to improve further in 2016 due to the
full-year impact of 2015 legislative and regulatory changes and
also due to the renegotiation of NEK's PPAs with two thermal
power plants, AES-3C Maritsa East 1 EOOD and Contour Global
Maritsa East 3 AD, which came into force following the repayment
of NEK's overdue trade payables to these two plants in April
2016. As a result, we expect NEK to generate positive EBITDA of
about BGN0.1 billion in 2016 for the first time since 2012,"
Fitch said.

Regulatory Regime's Weakness

Despite recent positive developments addressing NEK's tariff
deficit, BEH and its subsidiaries are yet to establish a track
record of improved cash flows while the Bulgarian operating
environment remains subject to high regulatory and political
risk. This is a constraint on the ratings despite BEH's projected
credit metrics being strong for the rating.

Decision on Belene Arbitration

An arbitration court has recently ordered NEK to pay EUR554
million (BGN1.1 billion) together with interest accrued to
Russia's Atomstroyexport for the nuclear power plant equipment
following a long arbitration process related to the terminated
Belene nuclear power plant project.

Fitch said, "We assume in our rating case projections that NEK
will pay the ordered amount to the Russian party by end-2017.
This would increase BEH's FFO adjusted net leverage in 2017 to
3.8x (compared with 2.4x in a scenario of no payment for the
Belene arbitration), which is still strong for the current
rating."

Senior Unsecured Debt Rating

"The senior unsecured rating is at the same level as the IDR.
However, if the ratio of prior-ranking debt (the debt of
subsidiaries who do not guarantee BEH) to consolidated EBITDA is
above 2x on a sustained basis then we would consider rating
unsecured debt one notch lower than the IDR."

Strong Links with the State

The IDR is notched up one level from BEH's standalone rating,
reflecting the group's strong links with the Bulgarian state.
This is mainly evidenced by state guarantees for 23% of the
group's debt provided to certain subsidiaries (as of end-2015),
down from 50% in 2012, the strong operational ties BEH has with
the state and the group's strategic importance due to its
dominant market position in the country's electricity and gas
market.

Fitch said, "We expect that the level of state guarantees will
decline further in 2016-2017 as the state-guaranteed debt is
amortized and most new debt is unlikely to be guaranteed, in our
view. The only new state-guaranteed loan is for a gas
interconnector with Greece (BGN215 million) that BEH will take up
in 2016. A declining share of state-guaranteed debt to less than
10%-15% of total group debt or lack of additional tangible
support if needed would result in a possible removal of the
currently applied one-notch uplift."

The Ministry of Energy of Bulgaria provided BEH with a letter of
support before the recent bond issue, stating that the Bulgarian
State will undertake necessary measures to financially support
BEH so that it meets its obligations to the bondholders. The
letter says that notification to the EU will be made before
support is granted in line with the EU's state aid rules. "We
treat support letters as a weaker form of support than
guarantees," Fitch said.

Corporate Governance Limitations

"The ratings reflect BEH's corporate governance limitations,
including a qualified audit opinion for BEH's 2009-2015
consolidated financial statements and frequent management
changes. We view the group's financial transparency, including on
business segments, as weak compared with its European peers."

KEY ASSUMPTIONS

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

   -- NEK turning a BGN0.1 billion EBITDA in 2016, following a
      BGN0.5 billion loss in 2014 on the back of regulatory and
      legislative changes and renegotiation of PPAs. This is the
      key driver of BEH's improved profitability.

   -- Capex of BGN3 billion in 2016-2019, co-funded with EU
      grants and CO2 reimbursement; capex to add to negative FCF
      in the medium term.

   -- NEK to pay EUR554 million (BGN1.1 billion) together with
      interest accrued to the Russian party by end-2017.

   -- Forthcoming tangible state support in case of prolonged
      tight liquidity.

RATING SENSITIVITIES

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

   -- Longer track record of a supportive regulatory and
      legislative environment leading to more predictable and
      less volatile operating cash flows, together with FFO
      adjusted net leverage below 4x on a sustained basis.

   -- Tangible government support, including additional state
      guarantees materially increasing the share of state-
      guaranteed debt or cash injections to aid NEK's payment of
      the arbitration amount related to the terminated Belene
      nuclear project. This would continue to support the one-
      notch uplift over the standalone rating for strong links
      with the state in the longer term.

   -- Substantially lower payment for the Belene nuclear power
      plant equipment agreed with the Russian party compared with
      the amount ordered by the arbitration court.

   -- Longer track record of a shrinking accumulated tariff
      deficit at NEK.

   -- Progress in the liberalization of the electricity market
      through a rising share of market-based pricing in the
      generation sector.

   -- Stronger corporate governance.

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

   -- FFO adjusted net leverage exceeding 5x on a sustained
      basis.

   -- Insufficient liquidity.

   -- Weakening links between BEH and Bulgaria through, for
      instance, a reduction in the share of state-guaranteed debt
      to less than 10%-15% of total group debt or lack of
      additional tangible support if needed.

   -- Sustained increase in prior-ranking debt to above 2x
      EBITDA, which would be negative for the senior unsecured
      rating.


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I R E L A N D
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TORO EUROPEAN: Fitch Assigns 'B-(EXP)sf' Rating to Class F Notes
----------------------------------------------------------------
Fitch Ratings has assigned Toro European CLO 2 DAC's notes the
following expected ratings:

   -- Class A: 'AAA(EXP)sf'; Outlook Stable

   -- Class B: 'AA(EXP)sf'; Outlook Stable

   -- Class C: 'A(EXP)sf'; Outlook Stable

   -- Class D: 'BBB(EXP)sf'; Outlook Stable

   -- Class E: 'BB(EXP)sf'; Outlook Stable

   -- Class F: 'B-(EXP)sf'; Outlook Stable

   -- Subordinated notes: not rated

Toro European CLO 2 is a cash flow collateralized loan obligation
(CLO). Net proceeds from the notes issue will be used to purchase
a EUR350 million portfolio of mostly European leveraged loans and
bonds. The portfolio is managed by Chenavari Credit Partners LLP.
The reinvestment period is scheduled to end in 2020.

The assignment of final ratings is contingent on the receipt of
documents conforming to information already received.

KEY RATING DRIVERS

'B'/'B-' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the
'B'/'B-' range. The agency has public ratings or credit opinions
on all the obligors in the identified portfolio. The covenanted
maximum Fitch weighted average rating factor (WARF) for assigning
expected ratings is 34.5. The WARF of the identified portfolio is
34.

High Expected Recoveries

The portfolio will be at least 90% senior secured obligations.
The covenanted minimum weighted average recovery rate (WARR) for
assigning expected ratings is 68.5%. The WARR of the identified
portfolio is 77.3%.

Payment Frequency Switch

The notes pay quarterly, while the portfolio assets can be reset
to semi-annual from quarterly or monthly. The transaction has an
interest-smoothing account but no liquidity facility. Liquidity
stress for the non-deferrable class A and B notes, stemming from
a large proportion of assets potentially resetting to semi-annual
in any one quarter, is addressed by switching the payment
frequency of the notes to semi-annual in such a scenario, subject
to certain conditions.

Limited Interest Rate Risk Exposure

Between 0% and 5% of the portfolio can be invested in fixed-rate
assets, while the liabilities pay a floating-rate coupon. Fitch
modelled both 0% and 5% fixed-rate buckets and found that the
rated notes can withstand the interest rate mismatch associated
with each scenario.

At closing the issuer will purchase an interest rate cap to hedge
the transaction again rising interest rates. The notional of the
cap is EUR10 million (representing 2.86% of the target par
amount) and the strike rate is 2%. The cap will expire five years
after the closing date.

Hedged Non-Euro Asset Exposure

The transaction is permitted to invest up to 30% of the portfolio
in non-euro assets, provided perfect asset swaps can be entered
into.

Documentation Amendments

The transaction documents may be amended subject to rating agency
confirmation or noteholder approval. Where rating agency
confirmation relates to risk factors, Fitch will analyze the
proposed change and may provide a rating action commentary if the
change has a negative impact on the ratings. Such amendments may
delay the repayment of the notes as long as Fitch's analysis
confirms the expected repayment of principal at the legal final
maturity.

If in the agency's opinion the amendment is risk-neutral from a
rating perspective Fitch may decline to comment. Noteholders
should be aware that the structure considers the confirmation to
be given if Fitch declines to comment.

RATING SENSITIVITIES

A 25% increase in the obligor default probability would lead to a
downgrade of up to two notches for the rated notes. A 25%
reduction in expected recovery rates would lead to a downgrade of
up to three notches for 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

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.

SOURCES OF INFORMATION

The information below was used in the analysis.

   -- Loan-by-loan data provided by the arranger as at 14 July
      2016

   -- Offering circular provided by the arranger as at 12 August
      2016

REPRESENTATIONS AND WARRANTIES

A description of the transaction's Representations, Warranties
and Enforcement Mechanisms (RW&Es) that are disclosed in the
offering document and which relate to the underlying asset pool
was not prepared for this transaction. Offering documents for
EMEA leveraged finance CLOs typically do not include RW&Es that
are available to investors and that relate to the asset pool
underlying the CLO. Therefore, Fitch credit reports for EMEA
leveraged finance CLO offerings will not typically include
descriptions of RW&Es. For further information, see Fitch's
Special Report titled "Representations, Warranties and
Enforcement Mechanisms in Global Structured Finance
Transactions," dated January 21, 2016.


TREASURY HOLDINGS: AGC Buys One Spencer Dock for EUR242 Million
---------------------------------------------------------------
Paul Norman at Costar reports that AGC Equity Partners has bought
the National Asset Management Agency-controlled One Spencer Dock,
PricewaterhouseCooper's Dublin HQ, out of receivership for EUR242
million.

Joint receivers Luke Charleton -- luke.charleton@ie.ey.com -- and
David Hughes -- david.hughes@ie.ey.com -- of Ernst & Young on
Aug. 12 announced the sale of the 226,624 sq ft Dublin office
block, Costar relates.  Joint selling agents Savills and CBRE
sold the property on behalf of the joint receivers and Davy Real
Estate, Costar discloses.

"We are very pleased to announce the sale of One Spencer Dock
following significant interest from domestic and international
investors, which is a testament to the potential and value of a
major development such as this.  This is a successful outcome
which reaffirms the international investor interest in Dublin,"
Costar quotes joint Receiver Luke Charleton of EY as saying.

One Spencer Dock was developed by Treasury Holdings in 2007 and
designed by Scott Tallon Walker Architects, Costar recounts.  The
building comprises a nine storey over basement modern office
facility which provides Grade A accommodation with 100 basement
car parking spaces, Costar relays.   The entire property extends
to approximately 21,054 square meters (226,624 sq ft), Costar
notes.

                      About Treasury Holdings

Treasury Holdings is an Irish property developer.  The company
owns the Westin Hotel in Dublin and the Irish headquarters of
accounting firm PricewaterhouseCoopers.

On October 9, 2012, Mr. Justice Brian McGovern appointed Paul
McCann and Michael McAteer of Grant Thornton as joint liquidators
of Treasury Holdings and 16 related companies at the High Court,
Dublin, following a petition from KBC Bank.


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I T A L Y
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CASAFORTE SRL: Fitch Puts B- Ratings on 2 Notes on Watch Evolving
-----------------------------------------------------------------
Fitch Ratings has placed Casaforte S.r.l.'s notes due June 2040
notes on Rating Watch Evolving (RWE) as detailed below:

   -- EUR1,087.7m class A: 'B-sf' placed on RWE

   -- EUR152.7m class B: 'B-sf' placed RWE

The transaction is a securitization of rental income derived from
the leasing of 683 bank branches and offices in Italy. These real
estate assets are let to Banca Monte dei Paschi di Siena
(MPS; B-/RWE) and its subsidiaries until July 2033.

KEY RATING DRIVERS

The assignment of RWE on the notes follows a similar rating
action on MPS on April 20, 2016, as the notes are credit-linked
to the sole tenant MPS.

RATING SENSITIVITIES

Resolution of the rating watch on MPS will result in a
corresponding rating action on Casaforte's rated notes.

DUE DILIGENCE USAGE

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

DATA ADEQUACY

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

SOURCES OF INFORMATION

The information below was used in the analysis.

   -- Transaction reporting provided by BNP Paribas/MPS as at
      July 2016


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N E T H E R L A N D S
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FORNAX BV: Fitch Lowers Rating on Class E Notes to 'CCCsf'
----------------------------------------------------------
Fitch Ratings has downgraded Fornax (Eclipse 2006-2) B.V.'s class
E notes, revised the Outlook on the class D notes and lowered the
Recovery Estimate (RE) on the class F notes as follows:

   -- EUR8.9m class D (XS0267554920) affirmed at 'BBBsf'; Outlook
      changed to Stable from Negative

   -- EUR24.8m class E (XS0267555570) downgraded to 'CCCsf' from
      'B-sf'; RE95%

   -- EUR16.8m class F (XS0267555737) affirmed at 'CCsf'; RE
      revised to 0% from 50%

   -- EUR6.7m class G (XS0267556032) affirmed at 'Dsf'; RE 0%

The transaction is a securitization of initially 19 (now three)
commercial real estate (CRE) loans originated by Barclays Bank
PLC. The remaining loans are the EUR39.9 million Cassina Plaza
loan, the EUR8 million ATU loan and the EUR9.3 million Kingbu
loan. All of the loans are defaulted, with note principal
distributed on a sequential pay-down basis.

KEY RATING DRIVERS

The Outlook revision to Stable for the class D notes reflects the
significantly lower leverage of this class, which is now the most
senior tranche of notes, after repayment in full of the Bielefeld
/Berlin loan. While this was expected, this is a credit positive
in an investment grade scenario. A resolution of any of the loans
currently outstanding should be sufficient for the full
redemption of this class, which Fitch considers as probable prior
to bond maturity in February 2019.

Redemption of the class E notes will require settlement of all
three loans however, the probability of which is receding in line
with time remaining to maturity. Neither a debt and equity sale
of the Cassina borrower nor a sale of the ATU portfolio have
materialized since Fitch's last rating action, highlighting the
difficulty of implementing proposed resolutions in a swift
fashion. This is reflected in the 'CCCsf' rating of the class E
notes.

For Cassina, the servicer is in negotiations over a proposed
asset sale (comprising four neighboring offices in an outlying
suburb of Milan). As recoveries are likely to be a small fraction
of the last published valuation of EUR55.6 million, and with the
lease break of the key tenant approaching, Fitch has downgraded
the class E notes and revised the RE for the class F notes.

The potential purchaser of the portfolio of eight car repair
shops in Austria securing the EUR8 million ATU loan has pulled
out, reportedly on concerns over the tenant (ATU). The servicer
has, however, reported investor interest in selected properties
at prices roughly in line with valuations.

The EUR9.3 million Kingbu loan is secured by a portfolio of fast-
food restaurants (branded Burger King) spread across Germany. A
refinancing is currently being negotiated, supporting Fitch's
view that the borrower retains equity in the portfolio and
further supporting the Stable Outlook for class D notes' rating.

RATING SENSITIVITIES

Given the approach of legal final maturity, the key rating
sensitivity will be the speed at which recoveries from the loans
can be generated, and at what discount to valuation, if any. More
evidence of delays following through on resolution proposals
would negatively affect the rating of the class E notes. On the
other hand, a higher-than-expected recovery amount for Cassina
could lead to upward revision of the class F notes' RE.

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.

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.

SOURCES OF INFORMATION

The information below was used in the analysis.

   -- Loan-by-loan data provided by the servicer as at July 2016

   -- Transaction reporting provided by the servicer as at July
      2016


SAPINDA INVEST: Paid EUR50MM Bond Coupon Interest Six Weeks Late
----------------------------------------------------------------
Joe Mayes and Luca Casiraghi at Bloomberg News reports that Lars
Windhorst's Sapinda Invest paid EUR50 million coupon interest on
its EUR1 billion bond, according to three people familiar with
the matter, who aren't authorized to speak about it and asked not
to be identified.

According to Bloomberg, the people said the interest, due on
June 30, was received by the paying agent BNP Paribas Securities
Services.

Dirk van Daele, head of the investment committee of Sapinda
Invest, declined to comment on the reason for the late payment,
Bloomberg relates.

Headquartered in Netherlands, Sapinda is a global investment
group formed in 2009 by a select number of entrepreneurs and
prominent high-net-worth families seeking exposure to investment
opportunities in special situations across continental Europe,
Sub-Saharan Africa and Asia.



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R U S S I A
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SAMARA CITY: Fitch Affirms 'BB+/B' IDRs, Outlook Stable
-------------------------------------------------------
Fitch Ratings has affirmed the Russian City of Samara's Long-Term
Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB+'
with Stable Outlooks, Short-Term Foreign Currency IDR at 'B' and
its National Long-Term rating at 'AA(rus)' with a Stable Outlook.

The affirmation reflects Fitch's unchanged base line scenario
that the city will continue to record a stable operating margin
and narrowing fiscal deficit, which will lead to the
stabilization of direct risk at below 40% of current revenue.

KEY RATING DRIVERS

The 'BB+' rating reflects the city's stable budgetary
performance, underpinned by a diversified local economy and
potential financial support from Samara Region. It also factors
in the city's moderate direct risk, albeit with a high bias
toward short-term bank loans. This exposes the city to high
refinancing risk and makes it dependent on access to financial
markets in order to refinance maturing debt.

Fitch expects the operating balance to hover close to a sound 12%
of operating revenue in 2016-2018, which is in line with the 2015
outrun. This is slightly below the strong average margin of 16%
in 2013-2014, but still commensurate with Samara's rating.
Operating performance was weaker in 2015 due to a 10% contraction
in the city's tax revenues as a result of the weak economic
environment. Growth in current transfers and cost-efficiency
measures implemented by the administration help mitigate the tax
revenue drop but cannot fully compensate it.

Weaker operating balance and increased interest expenditure
caused widening of the deficit before debt variation to 5.6% of
total revenue in 2015 (2014: -1.6%). The city intends to conduct
a prudent budgetary policy and has budgeted for a close to zero
deficit for 2016-2018. However, Fitch expects that the weak
economic environment will curb tax revenue recovery and that the
city's deficit before debt variation will stay at 2.5% of total
revenue in 2016 and gradually narrow to 1.5%-2.0% in 2017-2018.

Fitch projects that the city's direct risk will remain moderate
at RUB7.7 billion (35.8% of current revenue) by end-2016,
slightly up from RUB7.1 billion (35.1%) a year earlier. The
prudent budgetary policy of the city's administration aiming to
limit the fiscal deficit should lead to direct risk stabilizing
below 40% of current revenue in 2017-2018. Contingent risk is low
as the city does not have outstanding guarantees and its public
sector entities are self-sufficient.

Despite the moderate debt burden, Samara is exposed to
refinancing risk as it mostly relies on short-term bank loans for
deficit financing. By end-2016 the city needs to refinance 52% of
its outstanding debt with another 47% due in 2017. To meet this
obligation, in December 2015 the city contracted several
revolving credit lines with banks with two years maturity. Most
of these credit facilities were not used and are available at
first demand. At July 1, 2016, these credit lines amounted to
RUB3.1 billion and cover about 90% of debt due till year-end.
Fitch expects the city to be able to roll over the remaining
maturing bank loans, although the short-term tenor of its loans
means that it will continue to face refinancing risk.

With a population of above one million, the city is the capital
of Samara region, which has a well-developed diversified economy,
based on a processing industries and services. The city receives
negligible general-purpose financial aid from the region as its
fiscal capacity is stronger than the average municipality in the
region. However, Fitch forecasts a 0.5% decline of national GDP
in 2016 after a 3.5% drop in 2015, which will weigh on the city's
economic and budgetary performance.

The city of Samara's credit profile remains constrained by the
weak institutional framework for local and regional governments
(LRGs) in Russia. Russia's institutional framework for LRGs has a
shorter record of stable development than many international
peers. The predictability of Russian LRGs' budgetary policy is
hampered by the frequent reallocation of revenue and expenditure
responsibilities among government tiers.

RATING SENSITIVITIES

A strong budgetary performance with sustainable operating margin
above 15% and maintenance of moderate debt with lengthening of
debt maturity profile in line with debt payback (direct risk to
current revenue, 2015: 4 years) could lead to an upgrade.

Continuous deterioration of the budgetary performance leading to
a direct risk growth above 50% of current revenue (2015: 35.2%)
driven by short-term financing would lead to a downgrade.


X5 FINANCE: Fitch Assigns 'BB-' Rating to RUB5-Billion Bonds
------------------------------------------------------------
Fitch Ratings has assigned Russia-based X5 Finance LLC's recently
issued RUB5 billion bonds (4B02-07-36241-R) a senior unsecured
rating of 'BB-', a Recovery Rating of 'RR5' and a National senior
unsecured rating of 'A+(rus)'. X5 Finance LLC is a fully
consolidated non-operating subsidiary of X5 Retail Group N.V.
(X5).

Similar to other bonds issued by X5 Finance LLC, which Fitch also
rates 'BB-', the new bond only features a suretyship from the
holding company, X5. Therefore, Fitch views these bonds
structurally subordinated to other senior unsecured obligations
of the group, which are represented by bank debt at the level of
operating companies.

Fitch rates the bond one notch below X5's Long-Term Local
Currency 'BB' Issuer Default Rating (Stable Outlook) as prior-
ranking debt is estimated at 2.0x of group EBITDA in the 12
months to June 2016. "Based on our current forecasts we expect
the ratio to be at or above 2.0x by end-2016 and X5's debt mix to
remain unchanged over the medium term." Fitch said.

KEY RATING DRIVERS

Below-average Recoveries for Unsecured Bondholders

"The bond rating reflects below-average recovery expectations in
case of default. We have applied a one-notch discount to the bond
rating relative to X5's Long-Term IDR as bondholders do not have
any recourse to operating companies and therefore their rights
are structurally subordinated to lenders at the level of
operating companies. As such prior-ranking debt is estimated at
2x of group EBITDA there is a material possibility of
subordination and lower recoveries for unsecured creditors under
Fitch's criteria 'Recovery Ratings and Notching Criteria for Non-
Financial Corporate Issuers'," Fitch said.

"Recovery prospects for unsecured bondholders could improve, and
lead to equalization of the senior unsecured rating with the IDR,
if the proportion of priority debt in the funding structure
decreases below 2x EBITDA on a sustained basis. However, this is
not a scenario we currently envisage given X5's intention to
maintain a partly debt-funded growth strategy that may include
additional bank debt at operating company level."

Leading Multi-Format Retailer in Russia

"The rating reflects X5's strong market position as the second-
largest food retailer in Russia. The business model is supported
by X5's own logistics and distribution systems and multi-format
strategy, with a focus on the defensive discounter format. In our
view, these factors should enable X5 to retain and improve its
market position, despite increasing competition from other large
retail chains in the country, as proven in 2015 and 1H16. The
ratings also factor in X5's strong bargaining power over
suppliers due to the group's large scale and growing geographical
presence across Russian regions."

Strong Trading

In 2015 X5 demonstrated strong revenue growth of 28% yoy,
supported by an unprecedented number of new store openings and
industry-leading LfL sales growth (14% yoy). The latter was
driven not only by strong average basket growth but also an
increase in footfall. In 1H16 X5 maintained strong net retail
sales and LfL sales growth of 26% yoy and 7% yoy respectively.

The strong 2015 operating results have led X5 to approve a large
payment to its top management under a long-term incentive (LTI)
program; the payment was accrued in 2015 but paid in 2016.
Together with exit payment to former CEO and other related
expenses these one-off expenses amounted to RUB4.2 billion and
led to EBITDA margin decreasing to 6.8% in 2015 (2014: 7.2%).
However, adjusted for these one-off expenses, EBITDA margin would
have been stable at 7.3%, despite accelerated expansion and
weaker trading conditions. Our financial forecasts assume no
further LTI payments in 2018-2019 due to our conservative revenue
and EBITDA projections for these years.

Subdued Consumer Sentiment

"As real disposable incomes in Russia continue to decline, we
expect consumers to keep trading down in 2016. This would hamper
average shopping basket growth and lead to stronger competition
among the major retail chains," Fitch said. Therefore, Fitch
expects X5's LfL sales growth to decelerate in 2016-2017 but
remain strong compared with peers due to the group's ongoing
refurbishment program and repositioning of the group's
supermarket and hypermarket formats.

"We also project a decrease in EBITDA margin to 6.5% by 2019 on
the back of strong promotional activities and gross margin
sacrifices to withstand increased competition and protect
footfall rates. Positively, we factor in some support to margins
from improvements in logistics and slower increases in selling,
general and administrative expenses relative to sales growth."
Fitch said.

Weak Coverage Metrics

"We expect the funds from operations (FFO) fixed charge coverage
ratio to remain weak for the ratings at 1.6x-1.8x over 2016-2019
(2015: 1.8x), as a result of substantial operating lease expenses
and a high interest rate environment in Russia. However, this is
somewhat mitigated by favorable lease cancellation terms and the
partial dependence of leases on store turnover," Fitch said.

Stable Leverage

"We expect X5's FFO adjusted gross leverage to peak at 4.4x in
2016 (2015: 3.9x), due to large payment under the LTI program
before returning to around 4.0x in 2017-2019. Deleveraging is
constrained by the large capex planned by the group for further
expansion of the retail chain, ongoing store refurbishments and
investments in logistics. X5's capex remains largely scalable and
the group has some flexibility in managing its leverage, due to
strong and growing operating cash flows," Fitch said.

KEY ASSUMPTIONS

   -- Annual revenue growth of around 20%, driven by mid-single
      digit LfL sales growth and selling space CAGR of 15% over
      2016-2019

   -- EBITDA margin gradually decreasing to 6.5% by 2019

   -- Capex at around 5%-7% of revenue

   -- No dividends

   -- Neutral to negative free cash flow (FCF) margin

   -- No large-scale M&A activity

   -- Adequate liquidity

RATING SENSITIVITIES

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

   -- A sharp contraction in LfL sales growth relative to close
      peers.

   -- EBITDA margin erosion to below 6.5%.

   -- FFO-adjusted gross leverage above 5.0x on a sustained
      basis.

   -- FFO fixed charge cover significantly below 2.0x on a
      sustained basis if not mitigated by flexibility in managing
      operating lease expenses.

   -- Deterioration of liquidity as a result of high capex,
      worsened working capital turnover and weakened access to
      local funding as rouble bonds mature in 2016.

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

   -- Positive LfL sales growth comparable with close peers,
      together with maintenance of its leading market position in
      Russia's food retail sector.

   -- Ability to maintain the group's EBITDA margin at around 7%.

   -- FFO-adjusted gross leverage below 3.5x on a sustained
      basis.

   -- FFO fixed charge coverage around 2.5x on a sustained basis.

LIQUIDITY

"At end-March 2016 X5's cash of RUB4.5 billion, together with
available undrawn committed credit lines of RUB54.6 billion, were
not sufficient to fully cover RUB46.1 billion short-term debt and
expected negative FCF. However, RUB28.1 billion of debt was
related to tranches under revolving credit facilities, which we
expect to be extended upon maturity," Fitch said.

"We believe X5 retains firm access to local funding, due to its
large scale, non-cyclical food retail operations and strong
operating performance. This is proven by its rouble bond issue of
RUB15bn so far this year. In addition, X5 has flexibility in
managing its capex, which is the major reason for expected
negative FCF, while the group's operating cash flow generation
remains strong," Fitch said.


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


IM SABADELL 10: DBRS Finalizes CCC Rating on Series B Notes
-----------------------------------------------------------
DBRS Ratings Limited (DBRS) has finalized provisional ratings on
the following notes issued by IM SABADELL PYME 10 FT (the
Issuer):

-- EUR1,448.1 million Series A Notes: AA (sf) (the Series A
    Notes)
-- EUR301.9 million Series B Notes: CCC (low) (sf) (the Series
    B Notes; together, the Notes)

The transaction is a cash flow securitization collateralized by a
portfolio of term loans originated by Banco de Sabadell, S.A.
(Sabadell or the Originator) to small and medium-sized
enterprises (SMEs) and self-employed individuals based in Spain.
At the transaction's closing on July 29, 2016, the portfolio
included 17,442 loans to 15,081 obligor groups totalling EUR1.75
billion.

The rating on the Series A Notes addresses the timely payment of
interest and the ultimate payment of principal on or before the
Legal Maturity Date in May 2049. The rating on the Series B Notes
addresses the ultimate payment of interest and the ultimate
payment of principal on or before the Legal Maturity Date in May
2049.

Interest and principal payments on the Notes will be made
quarterly on the 20th of February, May, August and November with
the first payment date on November 21, 2016. The Notes will pay
an interest rate equal to Euribor 3 Month plus a 0.75% margin and
0.90% for Series A and Series B, respectively.

The securitized pool is well diversified with no significant
borrower concentration and relatively low industry concentration.
There is some concentration to borrowers in Catalonia (34.6% of
the portfolio balance), which is expected given that Catalonia is
the home region of the Originator. The top one, ten and twenty
borrowers represent 0.71%, 3.83% and 5.84% of the portfolio
balance, respectively. The top three industry sectors by DBRS
industry definition include Building and Development, Business
Equipment and Services and Food Services, representing 16.2%,
10.7% and 7.5% of the portfolio outstanding balance,
respectively.

These ratings are based upon DBRS's review of the following
items:
-- The transaction structure, the form and sufficiency of
    available credit enhancement and the portfolio
    characteristics.
-- At closing, the Series A Notes benefit from a total credit
    enhancement of 22%, which DBRS considers to be sufficient to
    support the AA (sf) rating. The Series B Notes benefit from a
    credit enhancement of 4.75%, which DBRS considers to be
    sufficient to support the CCC (low) (sf) rating. Credit
    enhancement is provided by subordination and the Reserve
    Fund.
-- The Reserve Fund is non-amortizing for the life of the
    transaction. The Reserve Fund has a balance of EUR83.1
    million, representing 4.75% of the aggregate balance of the
    Notes, and is available to cover shortfalls in the senior
    expenses and interest in the Series A Notes and, once the
    Series A Notes are fully paid, interest on Series B
    throughout the life of the Notes. The Reserve Fund will only
    be available as a credit support for the Notes at the Legal
    Final Maturity.
-- DBRS considers that there are inadequate mitigants to the
    commingling risk. To address this risk, DBRS analysis
    includes a stress equivalent to the interruption of interest
    and principal proceeds for a period of six months by assuming
    that senior expenses and interest on the Series A Notes would
    be paid from the Cash Reserve for this period.

DBRS determined these ratings as per the principal methodology
specified below:
-- The probability of default (PD) for the portfolio was
    determined using the historical performance information
    supplied. DBRS assumed an annualized PD of 2.06% for this
    portfolio.
-- The assumed weighted-average life (WAL) of the portfolio was
    4.31 years.
-- The PD and WAL were used in the DBRS Diversity Model to
    generate the hurdle rate for the target ratings.
-- The recovery rate was determined by considering the market
    value declines (MVDs) for Spain, the security level and the
    collateral type. For the Series A Notes, DBRS applied the
    following recovery rates: 68.6% for secured loans and 15.8%
    for unsecured loans. For the Series B Notes, DBRS applied the
    following recovery rates: 84.6% for secured loans and 21.5%
    for unsecured loans.
-- The break-even rates for the interest rate stresses and
    default timings were determined using the DBRS cash flow
    model.


=============
U K R A I N E
=============


* UKRAINE: Insolvent Banks' Refinancing Credit Debt Down by 36.5%
-----------------------------------------------------------------
UkrainianJournal.com reports that the debt of insolvent banks on
refinancing credits issued by the National Bank of Ukraine
decreased by UAH18.5 billion or 36.5%, to UAH32.25 billion, in
the first half of 2016.

According to UkrainianJournal.com, total debt reached UAH31.89
billion as if July 1, 2016.

The NBU said all banks that took stabilization credits or credits
to support liquidity decreased their debt in H1 2016,
UkrainianJournal.com relates.


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


IDH FINANCE: Moody's Assigns Caa1 Def. Rating on 2nd Lien Notes
---------------------------------------------------------------
Moody's Investors Service gave a definitive Caa1 long term rating
on guaranteed senior secured 2nd lien notes issued by IDH Finance
plc on Aug. 11, 2016.  The notes were previously given a
prospective Caa1 rating.


LOWCOSTBEDS: May Enter Insolvency This Week on Lack of Profits
--------------------------------------------------------------
Ian Taylor at TravelWeekly reports that the bed bank arm of
Lowcost Travel Group, Lowcostbeds, had yet to enter insolvency
this week, raising fears of knock-on failures and of
holidaymakers arriving at hotels to find rooms unpaid for.

Lowcost Travel ceased trading on July 15 with up to 300,000
customers of online agent Lowcost Holidays booked or abroad and a
GBP65 million black hole in its accounts, TravelWeekly recounts.

"I expect at least as many customers have bookings with
Lowcostbeds," TravelWeekly quotes Alan Bowen, legal adviser to
the Association of Atol Companies, as saying. However, the CAA
said it had "no figures on Atol protected bookings featuring
components supplied by the Lowcost group", TravelWeekly relays.

The company's pan-European structure -- it was based in the UK,
but sold holidays from Majorca and beds from Switzerland -- has
complicated the insolvency, TravelWeekly notes.

According to TravelWeekly, joint administrator Smith & Williamson
confirmed: "Lowcostbeds should enter a Swiss insolvency process.
The timing of the commencement of that process is uncertain."

Lowcostbeds sold accommodation to trade wholesalers and agents,
some of which was sold on to other wholesalers, TravelWeekly
discloses.

The administrators' spokeswoman declined to comment on Lowcost's
cash flow leading up to the failure or on how it failed with
peak-season bookings paid in full, TravelWeekly notes.  But the
spokeswoman, as cited by TravelWeekly, said: "It's apparent the
group failed because it did not have enough profits to continue
trading rather than a lack of business."


PREMIER OIL: Expects to Unveil Details of Rescue Deal on Thursday
-----------------------------------------------------------------
Erikka Askeland at Energy Voice reports that Premier Oil is
expected to reveal details of a deal with its lenders over its
US$2.6 billion (GBP2 billion) debt pile later this week.

The company has been in talks with its lenders -- a consortium of
around 25 banks -- for months as the effects of the oil and gas
downturn meant it faced breaching covenants and potentially
defaulting on loans, Energy Voice relates.

The firm is expected to unveil details of a restructuring plan on
Thursday, Aug. 18, when it announces its half year results,
Energy Voice discloses.

Premier has already benefited from waivers by its lenders,
announcing last month a deferral of a test of its financial
covenants until the end of August, Energy Voice relays.

According to Energy Voice, it is thought lenders are looking more
favorably at Premier's prospects as two major North Sea projects
come on stream boosting production and its GBP93 million deal to
acquire producing assets from Germany's Eon also floods its
coffers.

Premier Oil is a London-based oil and gas explorer.


PROVIDENCE INVESTMENT: Jersey IFA Launches Probe Into Sale
----------------------------------------------------------
Mark Battersby at International Adviser reports that Jersey's
financial services regulator has launched an investigation into
the sale of the Providence Investment Funds to clients of
Jersey-based independent financial adviser firm Lumiere Wealth.

Lumiere Wealth, which is majority owned by holding company
Providence Global, was launched in Jersey in 2015 at the island's
prestigious Waterfront complex in the expanding finance district
of Castle Quay, International Adviser recounts.  It is understood
to have a staff of 12, International Adviser discloses.

Earlier last week the Royal Court of Guernsey appointed Deloitte
as administration managers to Providence Investment Funds and its
manager Providence Investment Management International Ltd.,
which are also part of the Providence Global Group, after all of
the directors of both companies resigned, International Adviser
relates.

The founder and managing director of Lumiere Wealth, Chris Byrne,
left the IFA firm in June "due to ill health", the company said
when contacted by International Adviser.

According to International Adviser John Harris, director general
of the Jersey Financial Services Commission, said in a statement
issued on Aug. 12 that it was aware of the recent action taken by
the Guernsey Financial Services Commission in successfully
applying to place Providence Investment Management International
and Providence Investment Funds PCC into administration.


SUNNINGDALE CARE: Fails to Pay Workers' Monthly Salaries
--------------------------------------------------------
Tamworth Herald reports that workers at Sunningdale Care Home in
Upper Gungate claim they have been left unable to pay bills or
feed their families after the home's owners failed to pay out
their monthly salaries.

The care home is about to be sold as owners Staffordshire Care
Limited face financial fears, Tamworth Herald discloses.

Sunningdale Care Home is a special Care Home and has been
successfully caring for the elderly since it was purchased by the
present partnership in 2007.


ULYSSES: Fitch Maintains 'B-sf' Rating on Class C Notes on RWN
--------------------------------------------------------------
Fitch Ratings is maintaining Ulysses (European Loan Conduit
No. 27) classes A to C notes on Rating Watch Negative (RWN) as
follows:

   -- GBP249m class A (XS0308745107): 'BBsf'; remains on RWN

   -- GBP76m class B (XS0308747657) 'Bsf'; remains on RWN

   -- GBP48m class C (XS0308748200) 'B-sf'; remains on RWN

The RWN, on which the notes were placed following the Brexit vote
on July 6, 2016, reflects uncertainty over the resolution of the
underlying defaulted loan as a result of weaker sentiment over
London's commercial real estate market.

The transaction is a standalone securitization of one commercial
mortgage loan that was originated by Morgan Stanley Bank
International Limited. At closing, the issuer used the proceeds
of the note issue to acquire the mortgage loan, which has a total
outstanding balance of GBP429 million (GBP535 whole loan) and is
secured by a single office tower (known as City Point) located in
the city of London.

KEY RATING DRIVERS

The RWN reflects deterioration in market confidence for London
City offices following the UK vote to leave the EU. It also
reflects falling gross passing rent to GBP23.5 million in May
2016 from GBP28.9 million in August 2015, as well as complexity
arising from the existence of a purchase option over the
underlying A-note in the hands of the (non-securitized) B-note
holder. In Fitch's view, these factors (see rating action
commentary dated July 6, 2016) have reduced the likelihood of the
defaulted loan being resolved before legal final maturity (July
2017), despite some progress in extending and renewing the rental
profile.

The RWN reflects Fitch's view that uncertainty created by the
vote will complicate efforts to resolve the loan in the near
term. A valuation from December 2014 reported market value of
GBP498.5 million. Since then, market conditions initially
improved before abruptly deteriorating following the vote.

Fitch said, "The vote's impact on market conditions will be
assessed as more signs emerge from transaction evidence and from
wider progress with Brexit negotiations. Should a property sale
be achieved ahead of bond maturity, the likelihood of the notes
being repaid in full will depend on their seniority, as reflected
in the ratings. We expect the class A notes to still see
meaningful protection against value declines."

RATING SENSITIVITIES

The approaching legal final maturity puts downward pressure on
the ratings. Should the loan fail to be resolved in the short-
term, the notes may be downgraded further.

Fitch estimates 'Bsf' recoveries to the notes (after costs/senior
liabilities) of between GBP380 million and GBP400 million.

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10

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.

SOURCES OF INFORMATION

The information below was used in the analysis.

   -- Loan-by-loan data provided by Mount Street LLP as at
      May 2016

   -- Transaction reporting provided by Wells Fargo as at
      May 2016


===============
X X X X X X X X
===============


* DBRS Takes Rating Actions on SME Transactions After Update
------------------------------------------------------------
DBRS Ratings Limited took rating actions on 74 classes of notes
across 41 SME CLO Transactions in Spain, Italy, Portugal, Belgium
and Germany. Of the 74 classes, 45 classes were upgraded and 29
classes were confirmed. Additionally, 12 notes (ten out of the 46
classes upgraded and two out of the 29 classes confirmed) from
nine transactions have been removed from the Under Review with
Positive Implications (UR-Pos.) status. DBRS maintains the Under
Review with Negative Implications (UR-Neg.) status for one class
of notes.

The rating actions taken are as follows:

-- 2012 Popolare Bari SME S.r.l. Class A1 Notes upgraded to AAA
    (sf) from AA (sf)
-- 2012 Popolare Bari SME S.r.l. Class A2 Notes upgraded to AAA
    (sf) from AA (sf)
-- 2014 Popolare Bari SME S.r.l. Class A2a Notes confirmed
    at AAA (sf)
-- 2014 Popolare Bari SME S.r.l. Class A2b Notes confirmed at
    AAA (sf)
-- 2014 Popolare Bari SME S.r.l. Class B Notes upgraded to AAA
    (sf) from AA (high) (sf)
-- Abruzzo SME 2015 S.r.l. Class A Notes upgraded to AA (sf)
    from A (sf)
-- Alchera SPV S.r.l. Class A Notes upgraded to AAA (sf) from A
    (high) (sf)
-- Asti PMI S.r.l. Class A Notes upgraded to AAA (sf) from AA
    (sf)
-- Bankia PYME I FTA Series of Notes upgraded to AAA (sf) from
    AA (low) (sf)
-- BBVA Empresas 4 FTA Series of Notes removed from UR-Pos. and
    upgraded to A (high) (sf) from A (sf)
-- BBVA-10 PYME FT Series A Notes upgraded to A (high) (sf) from
    A (low) (sf)
-- BBVA-10 PYME FT Series B Notes upgraded to CCC (sf) from CCC
    (low) (sf)
-- BCC SME Finance 1 S.r.l. Class A Notes confirmed at AA (high)
    (sf). UR-Neg. status maintained
-- Belgian Lion NV / SA (Belgian Lion SME II) Class A1 notes
    confirmed at AAA (sf)
-- Belgian Lion NV / SA (Belgian Lion SME II) Class A2 notes
    confirmed at AAA (sf)
-- Berica PMI S.r.l Class A1X Notes confirmed at AAA (sf)
-- Berica PMI S.r.l Class A1Y Notes confirmed at AAA (sf)
-- BPL Mortgages S.r.l., Series VII Class A - 2014 Notes
    upgraded to A (high) (sf) from A (sf)
-- BPL Mortgages S.r.l., Series VII Class B - 2014 Notes
    upgraded to A (low) (sf) from BBB (high) (sf)
-- BPL Mortgages S.r.l., Series VII Series A2 - 2016 Notes
    upgraded to A (high) (sf) from A (sf)
-- BPL Mortgages S.r.l., Series VII Series B2 - 2016 Notes
    upgraded to A (low) (sf) from BBB (high) (sf)
-- Carismi Finance S.r.l. Class A Notes upgraded to AA (sf) from
    A (high) (sf)
-- Civitas SPV S.r.l. Series 2012-2-A Notes upgraded to AA (sf)
    from A (sf)
-- Claris SME 2015 S.r.l. Class A Notes upgraded to AA (sf) from
    A (high) (sf)
-- Claris SME 2015 S.r.l. Class B Notes upgraded to BBB (low)
   (sf) from BB (sf)
-- Credico Finance 14 S.r.l. Class A Notes removed from UR-Pos.
    and upgraded to AA (sf) from A (high) (sf)
-- Credico Finance 15 S.r.l. Class A2 Notes upgraded to AAA (sf)
    from AA (high) (sf)
-- Etruria Securitisation SPV S.r.l. Class B Notes upgraded to
    AAA (sf) from AA (high) (sf)
-- Foncaixa PYMES 6, FT Series A Notes removed from UR-Pos. and
    upgraded to A (sf) from A (low) (sf)
-- Foncaixa PYMES 6, FT Series B Notes removed from UR-Pos. and
    confirmed at CCC (low) (sf)
-- Foncaixa PYMES 7, FT Series A Notes removed from UR-Pos. and
    upgraded to A (sf) from A (low) (sf)
-- Foncaixa PYMES 7, FT Series B Notes removed from UR-Pos. and
    confirmed at CCC (high) (sf)
-- FT PYMES Santander 12 Series A Notes upgraded to A
    (high) (sf) from A (low) (sf)
-- FT PYMES Santander 12 Series B Notes confirmed at CCC (low)
    (sf)
-- FT PYMES Santander 12 Series C Notes confirmed at C (sf)
-- FTA PYMES Santander 10 Series A Notes confirmed at AAA (sf)
-- FTA PYMES Santander 10 Series B Notes upgraded to A (sf) from
    BBB (high) (sf)
-- FTA PYMES Santander 10 Series C Notes confirmed at C (sf)
-- FTA PYMES Santander 11 Series A Notes confirmed at A (high)
    (sf)
-- FTA PYMES Santander 11 Series B Notes confirmed at CCC (sf)
-- FTA PYMES Santander 11 Series C Notes confirmed at C (sf)
-- FTA PYMES Santander 6 Series A Notes confirmed at AAA (sf)
-- FTA PYMES Santander 6 Series B Notes removed from UR-Pos. and
    upgraded to BBB (high) (sf) from BB (high) (sf)
-- FTA PYMES Santander 6 Series C Notes confirmed at C (sf)
-- FTA PYMES Santander 9 Series A Notes upgraded to AAA (sf)
    from AA (sf)
-- FTA PYMES Santander 9 Series B Notes upgraded to BB (high)
    (sf) from CCC (high) (sf)
-- FTPYME TDA CAM 7, F.T.A. Series A1 notes confirmed at AA (sf)
-- FTPYME TDA CAM 7, F.T.A. Series A2(CA) notes confirmed at AA
    (sf)
-- FTPYME TDA CAM 7, F.T.A. Series A3 notes confirmed at AA (sf)
-- GAMMA - Sociedade de Titularizacao de Creditos, S.A.
    (ATLANTES SME No. 4) Class A Asset-Backed Floating Rate Notes
    removed from UR-Pos. and upgraded to AA (sf) from A
   (low) (sf)
-- GAMMA - Sociedade de Titularizacao de Creditos, S.A.
    (ATLANTES SME No. 4) Class B Asset-Backed Floating Rate Notes
    removed from UR-Pos. and upgraded to A (sf) from BBB
    (low) (sf)
-- Geldilux-TS-2015 S.A. Class A Notes upgraded to A (high) (sf)
    from A (sf)
-- Icaro Finance S.r.l Class A notes confirmed at AAA (sf)
-- IM CAJAMAR EMPRESAS 5, FTA Series A1 notes upgraded to
    AA (sf) from A (sf)
-- IM CAJAMAR EMPRESAS 5, FTA Series A2 notes upgraded to
    AA (sf) from A (sf)
-- IM CAJAMAR EMPRESAS 5, FTA Series B notes upgraded to B (sf)
    from CCC (sf)
-- IM Grupo Banco Popular Empresas VI, FTA Series A Notes
    upgraded to AA (sf) from A (high) (sf)
-- IM Grupo Banco Popular Empresas VI, FTA Series B Notes
    confirmed at CCC (high) (sf)
-- Lanterna Finance S.r.l. Class A Notes upgraded to AAA (sf)
    from AA (sf)
-- Mercurius Funding N.V. / S.A. Class A (ISIN: BE0002469444)
    confirmed at AA (sf)
-- Quadrivio SME 2014 S.r.l. Class A2a Notes confirmed at AAA
    (sf)
-- Quadrivio SME 2014 S.r.l. Class A2b Notes confirmed at AAA
    (sf)
-- Rosenkavalier 2015 UG Class A Notes upgraded to A (high) (sf)
    from A (sf)
-- Sagres Sociedade de Titularizacao de Creditos, S.A. (DOURO
    SME No.2) Class A notes upgraded to AA (sf) from A (sf)
-- Sagres Sociedade de Titularizacao de Creditos, S.A. (Pelican
    SME No. 2) Class A Notes confirmed at A (low) (sf)
-- Siena PMI 2015 S.r.l. Class A1A Notes confirmed at AAA (sf)
-- Siena PMI 2015 S.r.l. Class A1B Notes confirmed at AAA (sf)
-- Siena PMI 2015 S.r.l. Class A2A Notes upgraded to AAA (sf)
    from AA (sf)
-- Siena PMI 2015 S.r.l. Class A2B Notes upgraded to AAA (sf)
    from AA (sf)
-- Siena PMI 2015 S.r.l. Class B Notes upgraded to A (low) (sf)
    from BBB (high) (sf)
-- Siena PMI 2015 S.r.l. Class C Notes upgraded to BBB
   (low) (sf) from BB (high) (sf)
-- UBI SPV BBS 2012 S.r.l. Class A Notes removed from UR-Pos.
    and upgraded to AA (sf) from A (low) (sf)
-- UBI SPV BPA 2012 S.r.l. Class A Notes removed from UR-Pos.
    and upgraded to AA (sf) from A (low) (sf)
-- UBI SPV BPCI 2012 S.r.l. Class A Notes removed from UR-Pos.
    and upgraded to AA (sf) from A (low) (sf)

The rating of BCC SME Finance 1 S.r.l. Class A Notes was placed
UR-Neg status on July 20, 2016. DBRS is undertaking a review of
the transaction and will remove the rating from this status as
soon as it is appropriate. Generally, the conditions that lead to
the assignment of reviews are resolved within a 90-day period.

In addition to these rating actions, BPM Securitisation 3 S.r.l.
Class A Notes were confirmed at AAA (sf) on July 21, 2016
following a restructuring of the transaction; IM Grupo Banco
Popular Empresas V, FTA Series B Notes and Estense S.M.E. S.r.l.
Class A Notes were discontinued on July 26, 2016, and July 28,
2016, respectively, due to the payment in full of the Notes
following an early liquidation of the transactions; and Etruria
Securitisation SPV S.r.l. Class A Notes were discontinued on 28
July 2016 due to their full amortization.

The rating actions are the result of a full review of each
transaction following the publication of DBRS's "Rating CLOs
backed by Loans to European SMEs" (the Methodology) on July 19,
2016. The Methodology introduces two changes to the proprietary
model (DBRS Diversity Model or the Model) used to derive the
lifetime default rates of a portfolio composed of loans to SMEs
and new market value decline (MVD) assumptions for loans secured
by commercial properties.

Under the new approach, the simulation of defaults in the
portfolio takes into account a loan-by-loan amortization plan and
the outstanding balance of the loan at the time of default. The
decrease in the exposure at default balance outweighs the
variation in the loan tenor and generally has a net positive
impact on the lifetime default rates of the portfolio.

The two-factor industry correlations that the Model assumes to
account for the concentration in borrower industries have been
updated to incorporate the available historical default data to
DBRS; consequently, the inter- and intra-industry correlations
assumed are lower. This has a positive impact on the portfolio
lifetime default rates, but the impact remains marginal.

The new commercial MVDs are higher for all jurisdictions except
Spain and Northern Ireland. The impact on the overall recovery
rates of the portfolio may vary from one transaction to another,
depending on the composition of commercial and residential assets
as well as the effect of indexation of the property value. The
change in commercial MVD assumptions has a neutral to positive
impact on Spanish transactions and a negative impact for
transactions rated in other European jurisdictions. For loans
secured by residential real estate assets, the recovery approach
described in the relevant RMBS methodology continues to be
applied.

The ratings of eight transactions were previously placed UR-Pos.
as a result of the updated publication of DBRS's "Legal Criteria
for European Structured Finance Transactions" methodology (the
Legal Criteria) on 19 February 2016. The Legal Criteria
incorporates the Critical Obligations Ratings (COR), which were
introduced in the "Critical Obligations Rating Criteria"
methodology published on 2 February 2016, and also provides more
granular rating levels for account bank institution replacements
and eligible investments. The removal of the UR-Pos. status and
subsequent upgrades of these transactions incorporates the impact
of account banks that have been assigned a COR as well as rating
triggers at the new, granular levels described in the Legal
Criteria.

The rating of FTA PYMES SANTANDER 6 Series B Notes was placed UR-
Pos. following the publication of the "European RMBS Insight
Methodology" (the RMBS Methodology) and "European RMBS Insight -
Spanish Addendum" (the Spanish Addendum) on May 17, 2016. The
European RMBS Insight Model includes indexation of the underlying
property values and generates market value declines (MVDs) for
each of the 19 autonomous Spanish regions (and the national
level) to calculate losses. The removal of the UR-Pos. status of
this transaction and subsequent upgrade concludes the review of
the transaction under the RMBS Methodology and the Spanish
Addendum.

Along with the material changes introduced by the Methodology,
all the rating actions are based on the following analytical
considerations:

-- Portfolio performance, in terms of delinquencies and
    defaults.
-- The default, recovery and loss assumptions on the remaining
    collateral pool.
-- Current credit enhancement (CE) available to the notes to
    cover the expected losses at each tranche's respective rating
    levels.

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



                            *********

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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re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

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

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


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