TCREUR_Public/160818.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Thursday, August 18, 2016, Vol. 17, No. 163



* HUNGARY: Company Liquidations Down 20% in First Half 2016


POPOLARE BARI: DBRS Assigns B (high) Rating to Class B Notes


ARCELORMITTAL: Moody's Changes Outlook on Ba2 CFR to Stable
PATAGONIA FINANCE: Moody's Reviews EUR453.2MM Notes' 'Ca' Rating


CARPATICA ASIG: DNA Loses Bid to Block Bankruptcy


BEOBANKA: Belgrade to Auction Two Buildings on September 15
INDUSTRIJA MESA: Receiver Puts Properties Up for Sale


KNCMINER: Business Bought by Unknown Buyer Following Bankruptcy


CLASSICBANK: NBU Revokes Banking License, Starts Liquidation
EUROBANK: National Bank of Ukraine Revokes Banking License

U N I T E D   K I N G D O M

ALGECO SCOTSMAN: Moody's Lowers CFR to Caa1, Outlook Negative
DUNNE GROUP: In Administration, Keltbray Buys Assets
GHA COACHES: Unfilled Routes to Run with Reduced Service
HAWKSMOOR MORTGAGES 2016-1: Moody's Rates Class X Notes Caa3(sf)
JAGUAR LAND: S&P Raises CCR to 'BB+', Outlook Stable

MOY PARK: S&P Lowers CCR to 'BB-', Outlook Stable



* HUNGARY: Company Liquidations Down 20% in First Half 2016
MTI-Econews, citing website, reports that in the
first six months of 2016, around 4,333 companies were liquidated
in Hungary, 20% less than in the same period a year earlier.

According to MTI-Econews, the Web site said the number of
liquidations was down mainly because of regulatory changes,
primarily the introduction of rules mandating the forced
termination of defunct companies.

The site said since the economic recession of 2008-2009 around
319,481 companies have been liquidated in Hungary under various
procedures, but the number of companies grew as 333,670 companies
were founded in the same period, MTI-Econews relates.


POPOLARE BARI: DBRS Assigns B (high) Rating to Class B Notes
DBRS Ratings Limited assigned the following ratings to the Class
A and Class B Notes (the Notes) issued by Popolare Bari NPLS 2016
S.r.l. (the Issuer):

   -- EUR126,500,000 Class A at BBB (high)

   -- EUR14,000,000 Class B at B (high)

The notes are backed by a portfolio consisting of unsecured and
secured non-performing loans originated by Banca Popolare di Bari
s.c.p.a. (BPB), Banca Caripe S.p.A. (Banca Caripe) and Banca
Tercas S.p.A. (Banca Tercas). In July 2016, Banca Caripe and
Banca Tercas were consolidated into BPB. All loans in the
portfolio defaulted between 2000 and 2015 and are in various
stages of resolution. The portfolio will be serviced by Prelios
Credit Servicing S.p.A. (Prelios). Most of the secured loans
included in the portfolio are backed by properties primarily
concentrated in the southern regions of Italy, which typically
have a longer bankruptcy and settlement process. In its analysis,
DBRS assumed that all loans are disposed through the auction
process, which generally has the longest resolution timeline.

The Class B Notes, which represent mezzanine debt, may not be
repaid until the Class A Notes are repaid in full.

The ratings are based on DBRS's analysis of the projected
recoveries of the underlying collateral, the historical
performance and expertise of the servicer, Prelios, the
availability of liquidity to fund interest shortfalls and
special-purpose vehicle expenses, the cap agreement with J.P.
Morgan Securities plc and the transaction's legal and structural
features. DBRS's BBB (high) and B (high) ratings assume a haircut
of 24.03% and of 17.45%, respectively, to Prelios's business plan
for the portfolio.

All figures are in euros unless otherwise noted.

The principal methodology applicable is: Rating European Non-
Performing Loans Securitisations. DBRS has applied the principal
methodology consistently and conducted a review of the
transaction in accordance with the principal methodology.

Other methodologies referenced in this transaction are listed at
the end of this press release.

The sources of information used for this rating include Banca
Popolare di Bari S.c.p.a. and Prelios Credit Servicing S.p.A.

DBRS does not rely upon third-party due diligence in order to
conduct its analysis. DBRS was supplied with third party

DBRS considers the information available to it for the purposes
of providing this rating was of satisfactory quality.

DBRS does not audit the information it receives in connection
with the rating process, and it does not and cannot independently
verify that information in every instance.

This rating concerns a newly issued financial instrument.

This is the first DBRS rating on this financial instrument.

To assess the impact of the changing the transaction parameters
on the rating, DBRS considered the following stress scenarios, as
compared to the parameters used to determine the rating (the
"Base Case"):

   -- Recovery Rates Used: Cumulative Base Case Recovery Amount
      of EUR157,078,463 at the BBB (high) stress level, a 5% and
      10% decrease of the Cumulative Base Case Recovery Rate.

   -- Recovery Rates Used: Cumulative Base Case Recovery Amount
      of EUR170,665,375 at the B(high) stress level, a 5% and
      10% decrease of the Cumulative Base Case Recovery Rate.

   -- DBRS concludes that a hypothetical decrease of the Recovery
      Rate by 5%, ceteris paribus, would lead to a downgrade of
      the Class A notes to BBB (sf).

   -- DBRS concludes that a hypothetical decrease of the Recovery
      Rate by 10%, ceteris paribus, would lead to a downgrade of
      the Class A Notes to B (high) (sf).

   -- DBRS concludes that a hypothetical decrease of the Recovery
      Rate by 5%, ceteris paribus, would lead to a downgrade of
      the Class B Notes to B (low) (sf).

   -- DBRS concludes that a hypothetical decrease of the Recovery
      Rate by 10%, ceteris paribus, would each lead to a
      downgrade of the transaction to CCC (sf) for the Class B

Ratings assigned by DBRS Ratings Limited are subject to EU
regulations only.


ARCELORMITTAL: Moody's Changes Outlook on Ba2 CFR to Stable
Moody's Investors Service has changed the outlook on the Ba2
corporate family rating of multinational steel manufacturing
company ArcelorMittal to stable from negative.  Moody's has also
affirmed the CFR at Ba2 and the company's probability of default
rating (PDR) at Ba2-PD.

"We have changed the outlook on ArcelorMittal's ratings to stable
from negative to reflect a number of positive developments in
both the company's market environment and credit metrics", says
Hubert Allemani, Moody's lead analyst for ArcelorMittal.

"The strong recovery in steel prices in both the US and Europe
benefitted the company, with profitability increasing in Q2 2016
to a level we view as sustainable to the end of the year.
ArcelorMittal also reduced its gross Moody's-adjusted leverage to
a multiple of 4.8x at the end of June 2016, more in line with its
rating category", added Mr. Allemani.

                        RATINGS RATIONALE


During the course of Q1 2016, ArcelorMittal announced a series of
measures to strengthen its financial profile in the context of a
difficult operating environment.  These measures include a
continued commitment to (1) reducing operating costs and managing
its cash flow to remain free cash flow positive ("Action 2020"
plan); (2) a $3 billion rights issue, which was successfully
closed on 4 April 2016.; (3) divestment of non-core financial
investments, such as its 35% stake in Gestamp ($1 billion of
proceeds) and long business in the US.  The company used the
proceeds from the rights issue and the divestments to reduce its
gross debt and as such repaid about $4.5 billion of notional
value of outstanding debt instruments in Q2 2016.

Based on Moody's adjusted LTM EBITDA of $5.3 billion at the end
of June 2016 and together with the conversion into equity of the
$2.2 billion mandatorily convertible bond in January, the debt
repayment resulted in a reduction of the company's Moody's-
adjusted leverage to approximately 4.8x at the end of June 2016,
from 6.5x at the end of December 2015.  The liability management
exercise also resulted in an improvement of the company's
maturity profile.  These measures are additionally supported by
the group's increased quarterly profitability with an EBITDA
margin of 12% in Q2, compared to 7% in Q1, because of improved
pricing environment in both the US and Europe.

The change in outlook to stable from negative reflects
ArcelorMittal's commitment to defend its credit profile and
Moody's expectation that the company's financial metrics will
remain in line with current rating for the next 12 months.
Moody's expects that the company will be able to benefit from the
improved steel prices in both core markets of NAFTA and Europe to
generate a full year reported EBITDA higher than the current
company's guidance of in excess of $4.5 billion.  ArcelorMittal
is also likely to benefit from the anti-dumping duties imposed in
Europe on cold rolled coils from China and Russia, and in the US
for cold and hot rolled coils from various countries including
China, South Korea and Japan.

Notwithstanding the recent rebound of a number of steel product
prices from low levels seen at the end of 2015 and Q1 2016,
Moody's expects that steel prices will remain under pressure for
the remainder of the year.  This is a result from imports and
pricing decisions taken in China, which remains a strong driver
of global prices.

Finally Moody's expects that M&A activity will not significantly
negatively affect the company's profitability or positive free
cash flow target.

                   AFFIRMATION OF Ba2 RATING

The affirmation of ArcelorMittal's Ba2 rating reflects its (1)
strong market position in the global steel industry, in
particular in the growing automotive sector; (2) strong
geographical and product diversification, which helps the company
adapt to regional market conditions; (3) partial vertical
integration into iron ore and coking coal (the company sells most
of its production in the open market), which mitigates the
company's exposure to potential increase in its raw material
price; and (4) strong liquidity profile.

However, the rating also reflects (1) the recession in the
Brazilian market, with depressed domestic steel demand and higher
difficulties to export production owing to competitiveness and
import duties that have risen globally; (2) the high level of
competition from imported products from Asia into the US and
Europe, which affects pricing discipline and lowers market share;
and (3) the company's low profitability and high Moody's adjusted

                        LIQUIDITY PROFILE

Moody's considers ArcelorMittal's liquidity to be solid and
expects that it will remain strong over the next 12 months, as
evidenced by the large amount of cash held on the balance sheet
and the committed facilities available to the company.
ArcelorMittal has $1.8 billion worth of debt maturing in the next
18 months, which Moody's expects will be met without putting
excessive pressure on the company's liquidity.

At the end of June 2016, ArcelorMittal's available liquidity
amounted to $8.4 billion, consisting of $2.4 billion cash and
cash equivalents, and $6 billion of undrawn committed credit
lines. Finally, Moody's notes that ArcelorMittal uses a True
Sales of Receivable program as a way to manage its long cycle
working capital.  Usage under this program at the end of 2015
totalled approximately $4.8 billion.


Positive pressure on the rating could develop if (1)
ArcelorMittal's leverage decreases to a level of 4.5x debt/EBITDA
or below on a sustainable basis; (2) its retained cash flow/debt
ratio moves above 15%; and (3) the company's EBIT/interest ratio
reaches 1.5x.

The rating could move down if (1) its retained cash flow/debt
ratio remains below 10%; (2) the company's EBIT/interest ratio
remains under 1.0x on an ongoing basis; (3) covenants or other
factors constrain liquidity; (4) ArcelorMittal's net debt/EBITDA
ratio remains above 6.0x or higher on a prolonged basis; or (5)
the company engaged in M&A activity that would result in higher
leverage or drive free cash flow to become negative.



Issuer: ArcelorMittal
  LT Corporate Family Rating, Affirmed Ba2
   Probability of Default Rating, Affirmed Ba2-PD
  Multiple Seniority Shelf, Affirmed (P)Ba2
  Senior Unsecured Commercial Paper, Affirmed NP
  Senior Unsecured Medium-Term Note Program, Affirmed (P)NP
  Senior Unsecured Medium-Term Note Program, Affirmed (P)Ba2
  Senior Unsecured Regular Bond/Debenture, Affirmed Ba2 (LGD3)

Outlook Actions:

Issuer: ArcelorMittal
  Outlook, Changed To Stable From Negative

The principal methodology used in these ratings was Global Steel
Industry published in October 2012.

Headquartered in Luxembourg, ArcelorMittal is the world's largest
steel company.  It has a presence in more than 20 countries,
operating 57 integrated and mini-mill steel-making facilities,
which have a production capacity of around 119 million tons of
crude steel per year.  The company also has sizeable captive
supplies of iron ore and coking coal, and a trading and
distribution network.  In fiscal year 2015, ArcelorMittal shipped
approximately 84.5 million tons of steel and achieved sales of
$63.5 billion.

PATAGONIA FINANCE: Moody's Reviews EUR453.2MM Notes' 'Ca' Rating
Moody's Investors Service has placed on review with direction
uncertain the rating on the notes issued by Patagonia Finance

  EUR453.2115 mil. (current outstanding balance of
   EUR283,500,000) Senior Zero coupon notes, Ca Placed Under
   Review Direction Uncertain; previously on July 22, 2016,
   Downgraded to Ca

                          RATINGS RATIONALE

Moody's explained that the rating action taken today is the
result of a rating action on the subordinate rating of Banca
Monte dei Paschi di Siena S.p.A., which was placed on review with
direction uncertain on 08 August 2016.

This transaction represents a repackaging of a Banca Monte dei
Paschi di Siena S.p.A subordinated bond.

Methodology Underlying the Rating Action:

The principal methodology used in this rating was "Moody's
Approach to Rating Repackaged Securities" published in June 2015.

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

This rating is essentially a pass-through of the rating of the
underlying securities.  Noteholders are exposed to the credit
risk of Banca Monte dei Paschi di Siena S.p.A. and therefore the
rating moves in lock-step.

Moody's expects to conclude this review when the review of Banca
Monte dei Paschi di Siena S.p.A. is completed.

Moody's notes that this transaction is subject to a high level of
macroeconomic uncertainty, which could negatively impact the
ratings of the notes, as evidenced by 1) uncertainties of credit
conditions in the general economy and 2) more specifically, any
uncertainty associated with the underlying credits in the
transaction could have a direct impact on the repackaged


CARPATICA ASIG: DNA Loses Bid to Block Bankruptcy
Romania Insider reports that the judges of the High Court of
Cassation and Justice rejected on Aug. 17 the request of the
National Anticorruption Directorate (DNA) related to the
bankruptcy of the local insurer Carpatica Asig.

DNA had requested the court to block the insurer from going
bankrupt as Carpatica Asig is involved in a corruption case DNA
currently investigates, Romania Insider relates.  However, the
judges dismissed the request as "unfounded", Romania Insider
discloses.  The court's decision is not final and can be
challenged, Romania Insider relays, citing local Mediafax.

The Financial Supervisory Authority (ASF) withdrew the insurer's
operating license at the end of July, Romania Insider recounts.
The DNA prosecutors argued that the company would be quickly
liquidated and dissolved if the court confirmed its bankruptcy,
according to Romania Insider.  This means that the insurer could
no longer be held responsible in a criminal case, Romania Insider

Carpatica Asig was the seventh biggest insurer in Romania, in
2015, with gross premiums underwritten of over EUR130 million and
a market share of 6.7%.  The company was one of the leaders on
the mandatory car insurance (RCA) segment, according to Romania


BEOBANKA: Belgrade to Auction Two Buildings on September 15
SeeNews reports that the city of Belgrade will put up for sale
two downtown buildings of bankrupt Beobanka with a starting price
of RSD3.1 million (US$3.4 million).

According to SeeNews, Belgrade Mayor Sinisa Mali said in a
statement on the city's website on Aug. 15 the auction is
scheduled for Sept. 15.  The mayor said a number of foreign
investors have shown interest in the auction, SeeNews relates.

Beobanka has been in liquidation since 2002 and most of its
assets have been sold to meet its liabilities to creditors,
SeeNews discloses.

INDUSTRIJA MESA: Receiver Puts Properties Up for Sale
Serbian Bankruptcy Supervison agency told SeeNews on Aug. 15 the
receiver of Industrija Mesa i Konzervi Banat has put up for sale
through public bidding properties worth RSD394.4 million (US$3.5
million/EUR3.2 million).

According to SeeNews, the offer for the insolvent company's
properties includes buildings and properties in five
municipalities in the region of Vojvodina.

Industrija Mesa i Konzervi Banat is a Serbian meat producer.


KNCMINER: Business Bought by Unknown Buyer Following Bankruptcy
NewsBTC reports that KnCMiner has been purchased by an unknown

KnCMiner had recently filed for bankruptcy, NewsBTC recounts. The
company had stated escalating costs and stiff competition as the
reason for bankruptcy, NewsBTC discloses.

The apprehensions about the company's future have been put to
rest after a Swedish tech magazine reported the news about its
sale, NewsBTC relates.   According to NewsBTC, the magazine
reports that it has spoken to Nils Aberg, a bankruptcy trustee
who was involved in the KnCMiner deal.

Sam Cole, while announcing the company's decision to file for
bankruptcy had stated that the rising cost of energy in Sweden,
cheaper mining equipment, and large-scale mining operations in
China have made their business uneconomical, NewsBTC relays.  The
company had outstanding debts of over SEK165.2 million, NewsBTC

KnCMiner is a Swedish Bitcoin mining firm.


CLASSICBANK: NBU Revokes Banking License, Starts Liquidation
Ukrainian News Agency reports that the National Bank of Ukraine
has decided to revoke the banking license of ClassicBank and
start the process of its liquidation.

The National Bank of Ukraine decided on Aug. 11 to revoke the
banking license of ClassicBank and liquidate it at the proposal
of the Private Deposit Guarantee Fund, Ukrainian News relates.

ClassicBank was classified as an insolvent bank on June 14, the
report recounts.  According to Ukrainian News, the basis for this
decision was the bank's failure to bring its operations in line
with the requirements of the law within 180 days of its
categorization as a problem bank.

ClassicBank was categorized as a problem bank in December 2015
because of its opaque ownership structure, Ukrainian News

ClassicBank is based in Kyiv.

EUROBANK: National Bank of Ukraine Revokes Banking License
Interfax-Ukraine reports that the National Bank of Ukraine under
a proposal of the Deposit Guarantee Fund on Aug. 16 decided to
annul the banking license of Eurobank and liquidate it.

Earlier the fund expanded temporary administration at insolvent
Eurobank until Aug. 16, Interfax-Ukraine recounts.

On June 17, the National Bank of Ukraine declared Eurobank
insolvent, Interfax-Ukraine discloses. The Individual Deposit
Guarantee Fund on the basis of the decision of the NBU on
declaring Eurobank insolvent introduced temporary administration
in the financial institution, Interfax-Ukraine relates.
Administration was introduced for one month -- until July 16
inclusive, Interfax-Ukraine notes.

Due to a loss of liquidity the bank has stopped settling client
transactions on time, Interfax-Ukraine says.

The regulator said that 98% of depositors (8,000) will receive
their deposits in full, Interfax-Ukraine relays.

According to Interfax-Ukraine, the sum to be refunded as of
June 15, 2015 totaled some UAH217 million.

Kyiv-based Eurobank was founded in 2005.  Its assets as of
April 1, 2016, were estimated at UAH1.728 billion, which ranked
the bank 47th among 109 operating banks, according to the NBU.

U N I T E D   K I N G D O M

ALGECO SCOTSMAN: Moody's Lowers CFR to Caa1, Outlook Negative
Moody's Investors Service downgraded Algeco Scotsman Global
S.A.R.L.'s corporate family rating to Caa1 from B3.  Moody's also
downgraded Algeco Scotsman Global Finance PLC's senior secured
rating to Caa1 from B3 and senior unsecured rating to Caa3 from
Caa2.  The rating outlook is negative.

The rating action follows Algeco's announcement on August 15th
that the conditional merger agreement between its subsidiary
Williams Scotsman International, Inc. and Modular Space
Corporation ("ModSpace", senior secured rating Ca on review -
direction uncertain), announced on March 16, has been terminated.

These ratings have been downgraded with the outlook changed to
negative from rating under review:

Issuer: Algeco Scotsman Global Finance PLC
  Senior Secured Regular Bond/Debenture, to Caa1 from B3
  Senior Unsecured Regular Bond/Debenture, to Caa3 from Caa2

Issuer: Algeco Scotsman Global S.A.R.L.
  Corporate Family Rating, to Caa1 from B3

                          RATINGS RATIONALE

The rating action reflects Algeco's deteriorating liquidity as a
result of a further reduction in borrowing capacity under its
Asset Based Lending (ABL) facility and the fact that the
conditional merger/sale agreement with ModSpace, which was
expected to significantly improve Algeco's liquidity position,
has been terminated.  Algeco planned to apply the proceeds from
this transaction to repay a portion of the outstanding balance
under its ABL facility.

As of June 30, 2016, Algeco's borrowing availability under its
ABL facility was just $26.6 million.  Combined with the cash
balance of $66.5 million, the company's total liquidity position
amounted to $93.1 million, the lowest it has been since the end
of 2013, when the facility was upsized to its current limit of
$1.4 billion.  This leaves the company with limited financial
flexibility.  In addition, the ABL facility matures in October
2017, presenting refinancing and funding risks.

Algeco's financial performance remains weak, which has prevented
deleveraging, and is further exacerbated by significant negative
shareholders' equity and a major reliance on secured funding,
which encumbers assets and also limits financial flexibility.

Algeco's ratings could be downgraded if its liquidity position
deteriorates further or the company is not able to renew its ABL
facility well in advance of its maturity.  The outlook can return
to stable if the company improves its liquidity position from the
current levels and extends the maturity of the ABL facility.

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

DUNNE GROUP: In Administration, Keltbray Buys Assets
---------------------------------------------------- reports that engineering group Keltbray has
acquired the assets of the Dunne Group, which went into
administration last month.

It was initially thought that around 524 jobs would be cut, but
the new deal with administrators at FRP Advisory is set to save
around 400, according to

Keltbray has agreed to acquire some of the Dunne Group's assets
including the head office for the group in Bathgate in Scotland
and a plant used for the construction of reinforced concrete
structures, the report notes.

The giant, which employs 1,000 and turns over GBP270 million said
it saw the acquisition as an opportunity to broaden its services
and geographical reach, the report notes.

It is unknown how many jobs at the Leeds site were saved.

Dunne Group suffered major losses on contracts and suffered a
"lack of flexibility in funding" needed to keep up with growth,
the report discloses.

Tom MacLennan, Iain Fraser and Geoff Rowley, partners at FRP
Advisory, were appointed on July 20.

Mr MacLennan,said: "We are delighted to have agreed a deal with
Keltbray Group, and wish the company every success with their
future plans.

"We have been delighted with the response of the contracting
industry to the administration of the Dunne Group, and estimate
that since our appointment over 400 former staff have now found
new employment."

13 staff in Leeds, 311 in London and 200 in Scotland were
affected by the administration, the report says.

16 were initially retained to deal with the administration, the
report adds.

GHA COACHES: Unfilled Routes to Run with Reduced Service
BBC News reports that bus routes left unfilled after the collapse
of GHA Coaches in north Wales will be replaced, but with a
reduced service.

Wrexham council said eight services had not been replaced after
GHA Coaches went into administration in July, BBC relates.

Contracts have now been awarded for these, but many will not run
to the original timetables, BBC discloses.

Start dates and new timetables have not yet been finalized,
BBC notes.

The traffic commissioner needs to approve the new plan before it
can be implemented, BBC states.

According to BBC, the services covered by the new contract will

   -- 6 & 17 - Wrexham - Ruabon and Wrexham - Moss/Lodge
   -- 42F - Erbistock Area
   -- 45F - Maelor Area
   -- 47F - West Wrexham area
   -- 64 - Llanarmon DC - Llangollen
   -- 146 & 34 - Wrexham - Whitchurch and Wrexham - Trevalyn

GHA Coaches was a bus firm run by principal directors Gareth and
Arwyn Lloyd Davies.

HAWKSMOOR MORTGAGES 2016-1: Moody's Rates Class X Notes Caa3(sf)
Moody's Investors Service has assigned definitive long-term
credit ratings to notes issued by Hawksmoor Mortgages 2016-1 plc:

  GBP1,766.24 mil. Class A Mortgage Backed Floating Rate Notes
   due May 2053, Definitive Rating Assigned Aaa (sf)
  GBP146.25 mil. Class B Mortgage Backed Floating Rate Notes due
   May 2053, Definitive Rating Assigned Aa1 (sf)
  GBP90 mil. Class C Mortgage Backed Floating Rate Notes due May
    2053, Definitive Rating Assigned A1 (sf)
  GBP67.5 mil. Class D Mortgage Backed Floating Rate Notes due
    May 2053, Definitive Rating Assigned Baa1 (sf)
  GBP33.75 mil. Class E Mortgage Backed Floating Rate Notes due
   May 2053, Definitive Rating Assigned Ba2 (sf)
  GBP27 mil. Class X Floating Rate Notes due May 2053, Definitive
   Rating Assigned Caa3 (sf)

Moody's has not assigned ratings to the GBP 146.26 mil. Class F
Mortgage Backed Zero Coupon Notes due May 2053, the GBP 29.25
mil. Class Z1 Floating Rate Notes due May 2053 and GBP 33.76 mil.
Class Z2 Zero Coupon Notes due May 2053.

Moody's assigned provisional ratings to these notes on Aug. 3,

The portfolio backing this transaction consists of UK Non-
conforming residential mortgage loans originated, among others,
by GE Money Home Lending Limited, GE Money Mortgages Limited,
IGroup2 Limited and IGroup3 Limited.  The legal title to the
mortgages is held by Kensington Mortgage Company Limited ("KMC",
not rated).

On the closing date both Virage PL 1 Limited and Virage PL 2
Limited (the "Warehousing Sellers", not rated) sold the portfolio
to Junglinster S.a.r.l. (the "Seller", not rated).  In turn the
Seller sold the portfolio to Hawksmoor Mortgages 2016-1 plc (the

On June 23, 2016, the United Kingdom (UK) voted to leave the
European union. Under Moody's central scenario, the UK's decision
to leave the European Union will lead to a prolonged period of
uncertainty (see "UK Vote for EU Exit Signals A Prolonged Period
of Uncertainty, A Credit Negative," published on June 24, 2016).
For Hawksmoor Mortgage 2016-1 plc's underlying portfolio, the
rating agency does not expect a material impact on defaults or
recovery rates due to the good collateral diversification.

                        RATINGS RATIONALE

The rating takes into account the credit quality of the
underlying mortgage loan pool, from which Moody's determined the
MILAN Credit Enhancement and the portfolio expected loss, as well
as the transaction structure and legal considerations.  The
expected portfolio loss of 2.8% and the MILAN required credit
enhancement of 16% serve as input parameters for Moody's cash
flow model and tranching model, which is based on a probabilistic
lognormal distribution.

Portfolio expected loss of 2.8%: this is based on Moody's
assessment of the lifetime loss expectation taking into account:
(i) the weighted average current LTV of around 71.2% on a non-
indexed basis; (ii) the collateral performance to date along with
an average seasoning of 9.7 years. 13.8% of the pool is in
arrears as of 15 July 2016, of which 1.01% is more than 90 days
in arrears; (iii) the current macroeconomic environment and our
view of the future macroeconomic environment in the UK, and (iv)
benchmarking with similar transactions in the UK Non-conforming

MILAN CE of 16%: this is lower than the UK Non-conforming RMBS
sector average and follows Moody's assessment of the loan-by-loan
information taking into account the historical performance
available and the following key drivers: (i) the relatively low
weighted average current LTV of 71.2% on a non-indexed basis;
(ii) the high proportion of self-employed borrowers at 30.5%;
(iii) the presence of 28.9% loans where the borrower self-
certified its income; (iv) around 58.6% of interest only loans;
(v) borrowers with adverse credit history accounting for 13.2% of
the pool; (vi) the level of arrears around 13.8% as of July 15,
2016, and (vii) benchmarking with other UK Non-conforming RMBS

At closing the mortgage pool balance consists of GBP 2,250
million of loans.  The total Reserve Fund is funded to 3.0% of
the initial mortgage pool balance and will amortize to 3.0% of
the outstanding balance of Classes A to F notes, subject to a
floor of 1.5% of the outstanding balance of Classes A to F notes.
The total Reserve Fund is split into the Liquidity Reserve Fund
and the Non Liquidity Reserve Fund.  The Liquidity Reserve Fund
Required Amount is equal to 2.5% of Class A outstanding amount
and is available only to cover senior expenses and Class A
interest.  The Liquidity Reserve Fund is floored at 1% of the
initial principal balance of Class A and will be released only
after Class A is fully repaid.  The Non Liquidity Reserve Fund is
equal to the difference between the total Reserve Fund and the
Liquidity Reserve Fund, and can be used to cover interest
shortfalls and to cure PDL on Classes A to E notes.

Operational risk analysis: KMC is acting as servicer of record,
delegating servicing responsibilities to Acenden Limited (not
rated).  The issuer delegates to KMC, as the legal title holder,
the responsibility over certain servicing policies and setting of
interest rates.  In order to mitigate the operational risk,
Structured Finance Management Limited (not rated) is appointed as
Back-Up Servicer Facilitator at closing, and, in addition, Wells
Fargo Bank International (not rated) is acting as a Back-Up Cash
Manager from close.  To ensure payment continuity over the
transaction's lifetime the transaction documents incorporate
estimation language whereby the cash manager can use the three
most recent servicer reports to determine the cash allocation in
case no servicer report is available.  The transaction also
benefits from principal to pay interest mechanism for the Class A
notes and for Classes B to E notes, subject to certain conditions
being met.

Interest rate risk analysis: 98.1% of the portfolio pay a
floating rate of interest, while the remaining 1.7% pay a fixed
rate with a weighted average time to reset of approximately 9
months.  The interest rate risk in the transaction is unhedged.
Moody's has taken into consideration the absence of an interest
rate swap in its cash flow modeling.

The definitive 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 Class A notes
by legal final maturity.  Other non-credit risks have not been
addressed, but may have a significant effect on yield to

Stress Scenarios:

Moody's Parameter Sensitivities: if the portfolio expected loss
was increased from 2.8% to 5.6% of current balance, and the MILAN
CE was increased from 16% to 22.4%, the model output indicates
that the Class A notes would still achieve Aaa (sf) assuming that
all other factors remained equal.  Moody's Parameter
Sensitivities quantify the potential rating impact on a
structured finance security from changing certain input
parameters used in the initial rating.

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed.

The analysis assumes that the deal has not aged and 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 key rating input parameters were varied.
Parameter Sensitivities for the typical EMEA RMBS transaction are
calculated by stressing key variable inputs in Moody's primary
rating model.

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

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

Factors that would lead to an upgrade or downgrade of the

Significantly different loss assumptions compared with our
expectations at close due to either a change in economic
conditions from our central scenario forecast or idiosyncratic
performance factors would lead to rating actions.  For instance,
should economic conditions be worse than forecast, the higher
defaults and loss severities resulting from a greater
unemployment, worsening household affordability and a weaker
housing market could result in a downgrade of the ratings.
Deleveraging of the capital structure or conversely a
deterioration in the notes available credit enhancement could
result in an upgrade or a downgrade of the ratings, respectively.

JAGUAR LAND: S&P Raises CCR to 'BB+', Outlook Stable
S&P Global Ratings said it has raised to 'BB+' from 'BB' its
long-term corporate credit rating on U.K.-based premium auto
manufacturer Jaguar Land Rover Automotive PLC (JLR).  The outlook
is stable.

At the same time, S&P raised its issue ratings on the senior
unsecured debt instruments issued by JLR to 'BB+' from 'BB', in
line with the corporate credit rating.  The '3' recovery rating
on these debt instruments is unchanged, reflecting S&P's
expectation of average recovery for debtholders (higher end of
the 50%-70% range) in the event of a payment default.

Furthermore, S&P has withdrawn the 'BB' issue and '3' recovery
ratings on GBP500 million 8.25% notes due 2020 and $410 million
8.125% notes due 2021 as these debt instruments have been fully

The upgrade reflects S&P's view that JLR continues to strengthen
its competitive position and business profile by demonstrating
successful new model launches, including expanding into new
market segments, and extending existing models.  Notably, the
Jaguar brand is being refreshed with new products such as the XE
sedan, launched in May 2015, and more recently the F-Pace
crossover available since April 2016. Land Rover is also
benefiting from the new Discovery Sport, launched in February

In fiscal 2016 (year to March 31, 2016), JLR's volumes were up
13% to about 522,000 due mainly to the XE and Discovery Sport.
During the first four months of fiscal 2017 (year to July 30,
2016), these new models and the F-Pace drove volumes up 20% year-
on-year, with Jaguar's volumes ahead by 80%.  Volume growth has
also been broadly spread by region, including China, which has
seen a 28% increase so far this fiscal year.  Further new and
updated models are in the pipeline, including a Range Rover
Evoque convertible (launched in June 2016) and a long-wheel base
version of the Jaguar XF in China.

Following the U.K.'s recent vote to leave the EU (Brexit), there
are no immediate signs that JLR's U.K. volumes (which accounted
for 21% of volumes and revenues during fiscal 2016) have been
adversely affected.  Record retail volumes in July, up 34% year-
on-year (including the U.K. up 38%), also highlight the success
of the new models.  However, S&P do see a risk that U.K. car
volumes could be lower than they otherwise would be, due to S&P's
expectations of slower macroeconomic growth and weaker consumer
confidence.  S&P still expects volume growth to continue overall,
driven by new models.

S&P sees potential benefits to JLR's margins following the Brexit
vote if a weaker pound sterling exchange rate against the U.S.
dollar and euro is sustained, given significant export volumes
being partly offset by historical hedges and potentially higher
costs of imported components.  However, S&P do not anticipate
these benefits to fully offset the potential effect of weaker
U.K. volumes. JLR's profit margins were lower in fiscal 2016,
primarily due to weaker market conditions, model mix, and higher
costs, and S&P expects this to remain the case.  However, the S&P
Global Ratings-adjusted EBITDA margin of 9.0% for fiscal 2016
remained ahead of many peers.

S&P expects JLR's cash flow to remain strong, albeit with high
capital expenditures (capex) leading to modestly negative free
operating cash flow (FOCF).  With zero adjusted debt as of fiscal
2016, JLR has significant financial flexibility in its stand-
alone credit profile (SACP), which S&P has raised to 'bbb-' from

S&P's base-case scenario for JLR for fiscal 2017 and 2018

   -- Global GDP growth of about 3% per year, with the U.K. at
      about 1%, the EU at 1%-2%, the U.S. at about 2%, and China
      at about 6%.  S&P lowered its growth forecasts for the U.K.
      and EU following the Brexit vote, though these still show
      positive growth.

   -- S&P expects global light vehicle volumes to show continued
      growth of 2%-3% per year, with Asia-Pacific remaining the
      main growth market, and with the EU also ahead, while
      growth in the U.S. is slowing and Latin America continues
      to decline.

   -- For JLR, S&P forecasts stronger volume growth of 10%-20%
      per year, due to the success of new model launches.

   -- Stable reported EBITDA margins of about 14%-15%.

   -- Sizable capex in fiscal 2017 of GBP3.75 billion as guided
      by JLR, with continued heavy spending in following years.

   -- Potentially modestly negative FOCF.  Limited annual
      dividend payments to Tata Motors, consistent with the
      GBP150 million paid in fiscal 2016.

Based on these assumptions, S&P expects leverage metrics to be
stronger than its previous expectations.  S&P forecasts the
following credit measures for JLR in fiscal 2017 and 2018:

   -- Stronger adjusted EBITDA and FFO in both years compared to
      fiscal 2016, with zero adjusted debt maintained in fiscal
      2017 and only a very low level of adjusted debt in fiscal

   -- Leverage metrics for fiscal 2018 are below 0.5x adjusted
      debt to EBITDA and above 100% FFO to adjusted debt.

Based on these assumptions, S&P arrives at these credit measures
in fiscal 2017 and 2018 for Tata Motors:

   -- Stronger operating performance to offset negative FOCF,
      resulting in FFO to debt of about 40%.

   -- S&P expects debt to EBITDA of about 1.7x.

S&P's assessment of JLR's business risk profile is supported by
the group's well-established and improving market position as a
global premium auto manufacturer, with well-recognized brands,
particularly Range Rover, but increasingly Jaguar as well.  JLR
has a lengthening track record of successful product extension
and development, which includes expanding into new market
segments, and continues to improve its competitive position.
These strengths are partly offset by JLR's still-modest size and
more limited product range compared with larger global peers.
JLR is ramping up its joint-venture production in China.
Cyclical demand for premium and luxury cars is also a
constraining factor in S&P's assessment.

S&P's assessment of JLR's financial risk profile is supported by
S&P's expectation of zero or very low adjusted debt and strong
leverage metrics during the next two years.  JLR also has sizable
retained cash balances, which represent a source of financing and
support strong liquidity.  Dividend payments to Tata Motors are
low, which enables JLR to retain cash flows for its own
investment needs.  Offsetting factors include heavy capex in
areas such as vehicle programs and new capacity, which S&P
expects to lead to modestly negative FOCF.  S&P factors in the
possibility of higher cash flow volatility in the event of

As of fiscal 2016, adjusted debt was zero.  S&P makes analytical
adjustments to reported gross debt of GBP2.5 billion, mainly by
subtracting GBP4.4 billion for surplus cash (after deducting a
haircut of GBP0.3 billion), and adding GBP0.6 billion for
pensions and operating leases.

JLR's SACP of 'bbb-' reflects a revised satisfactory business
risk and unchanged intermediate financial risk profiles.  S&P's
liquidity assessment was raised to strong from adequate.

JLR is a wholly-owned subsidiary of India-based Tata Motors Ltd.,
and accounts for more than 90% of the group's EBITDA, while
accounting for about 45% of the group's reported industrial debt.
S&P continues to regard JLR as a highly strategic entity of Tata
Motors, reflecting S&P's view that JLR is unlikely to be sold,
has a long-term commitment from its parent, and constitutes a
significant proportion of the consolidated group.  However, JLR
is operationally separate and does not serve the same customer

The rating on JLR is constrained by the 'BB+' rating on Tata
Motors, as S&P sees a risk that Tata Motors could draw support
from JLR in a credit-stress scenario.

JLR is a U.K.-based leading automotive manufacturer focused on
the premium segment, across Jaguar (sports saloon, sports cars,
and luxury sports utility vehicles [SUVs]) and Land Rover
(premium/luxury SUVs) brands.  Fiscal 2016 revenues were GBP22.2

The stable outlook reflects S&P's expectation that JLR will
maintain steady profitability, and that Tata Motors will
demonstrate a ratio of FFO to adjusted debt of about 40% over the
next one-to-two years.

S&P may raise its rating on JLR if S&P raises the rating on Tata
Motors.  This could occur if JLR's strong operating performance
partly offsets higher capex, such that S&P expects Tata Motors to
sustain its ratio of FFO to debt above 45%.  Strong operating
performance could be supported by further strengthening of JLR's
product portfolio.

S&P may lower the rating on JLR if S&P lowers the rating on Tata
Motors.  This could occur if operating performance weakens and
capex is high, likely resulting in a ratio of FFO to debt below
30% on a sustained basis.  A weaker operating performance could
be a reflection of lower-than-expected success in new models or a
more challenging operating environment, such as a larger than
expected adverse impact from Brexit.

MOY PARK: S&P Lowers CCR to 'BB-', Outlook Stable
S&P Global Ratings said that it lowered its long-term corporate
credit rating on U.K. poultry producer Moy Park Holdings Europe
(Moy Park) to 'BB-' from 'BB'.  The outlook is stable.

At the same time, S&P lowered to 'BB-' from 'BB' its issue
ratings on the existing GBP300 million senior unsecured notes due
2021. The recovery rating on these notes is unchanged at '3',
reflecting S&P's expectation of average (50%-70%) recovery in the
event of a payment default.

Brazil-based meat processor JBS S.A. owns Moy Park.  Its
liquidity position has weakened to less-than-adequate following
two consecutive quarters of cash drain caused by poor working
capital management, lower-than-estimated operating cash flows,
and the liquidation of derivative positions.  JBS' financial
flexibility has diminished -- it still has sizable short-term
maturities and is finding hard to restore its margins at the
group's main businesses, such as the U.S. beef and Brazilian
poultry operation at Seara.  As a result, S&P has downgraded JBS
to 'BB' and revised the group credit profile (GCP) to 'bb'.  The
GCP forms the basis for S&P's assessment of the group support
available to Moy Park.

Moy Park is fully consolidated into JBS' operations and financial
reporting and still meets S&P's criteria definition of an entity
that is strategically important to the group.  S&P's assessment
is supported by its understanding that JBS S.A. is unlikely to
sell Moy Park, that Moy Park is a part of the group's long-term
strategy, and that Moy Park is reasonably successful at what it
does.  Given its group status, Moy Park's issuer credit rating is
capped at one notch below the GCP.  Because the GCP has been
revised down, Moy Park will no longer benefit from a one-notch
uplift for group support.

Moy Park's business risk and financial risk profiles remain
unchanged at weak and significant, respectively.  S&P combines
these to derive the 'bb-' anchor.  The business risk assessment
reflects Moy Park's geographic concentration in the U.K.,
Ireland, and France; limited product diversity, with over 75% of
revenue derived from poultry products; and significant exposure
to private label retailers, which tend to enjoy lower margins
than branded products.  These weaknesses are offset by Moy Park's
position as the second-largest poultry producer in the U.K. and
its strong market positions in the "chilled" and "ready-to-eat"

"We also view positively the supporting market conditions--market
demand for poultry remains steady in the U.K. and management
enjoys a track record of managing volatile raw material prices
and avoiding disease outbreaks in its operations.  We expect Moy
Park to continue to record competitive profitability metrics
compared with industry averages.  That said, we see the product
concentration and deflationary retail environment as significant
challenges that limit the potential for a stronger business risk
assessment at this time," S&P said.

"Our financial risk profile assessment reflects our forecast that
Moy Park's S&P Global Ratings-adjusted debt-to-EBITDA ratio will
be about 3.0x-3.5x in 2016 and 2017.  Adjusted debt stood at
GBP405 million as of Dec. 31, 2015.  The totals included trade
receivables sold, operating leases, and unamortized borrowing
costs of approximately GBP78 million. For the 2015 financial
year, reported revenue stood at GBP1.44 billion and adjusted
EBITDA at GBP117 million.  We expect steady top-line growth and
improved profitability going forward.  We forecast that earnings
will increase modestly, mainly based on volume growth, continued
efficiency gains, and product innovation in poultry production.
We anticipate that adjusted free operating cash flow will be at
least GBP25 million as we expect working capital movements to be
largely neutral and capital expenditure (capex) to be between 4%-
5% annually.  The EBITDA interest coverage metric is likely to
remain strong at 5x-6x, and as such we expect Moy Park will be
able to comfortably meet the interest payments on its
GBP300 million senior notes due 2021," S&P noted.

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

   -- Revenue growth of 2%-4%, reflecting modest increases in
      consumer demand, offset by deflationary price pressures.

   -- Modest improvement in profitability driven by management's
      continued efficiency programs and procurement savings.

   -- Annual capex of about 4.5%-5.5% of revenues.  Negligible
      movement in working capital requirements and no

   -- No dividend payments or early redemption of outstanding

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

   -- Stable operating performance, resulting in adjusted EBITDA
      margins of 8.0%-8.5% in 2016 and 2017.
   -- Adjusted debt to EBITDA of 3.0x-3.5x in 2016 and 2017.
   -- Adjusted EBITDA interest coverage of 5.0x-6.0x in 2016 and

The stable outlook reflects S&P's view that Moy Park will
maintain fairly stable revenues and profitability enabling its
adjusted debt-to-EBITDA to remain at 3.0x-3.5x and its EBITDA
interest coverage to be 5.0x-6.0x while generating modest free
cash flow, over the next 18-24 months.  S&P also expects JBS S.A.
to improve its operating performance by focusing on efficiency
and exploiting its diverse product offerings so as to preserve
debt protection metrics and generate cash flows.  S&P do not
expect Moy Park's financial policy to change -- management has
stated that the group has no plans to increase debt leverage from
current levels through debt-financed acquisitions or a step-up in
the distribution of funds to shareholders.

S&P could lower the rating should it lower the rating on its
parent JBS, all other things being equal.  This would likely
occur if Moy Park's SACP was 'bb-' or lower and JBS's operating
performance and cash flow generation weakened.  This would result
in higher leverage metrics for JBS than S&P forecasts in its base
case and a deteriorating liquidity position.

S&P could raise the ratings on Moy Park if JBS' operating
performance and liquidity profile were to improve, causing S&P to
raise its rating on it.  This could occur if JBS were to enhance
profit margins on its beef and poultry operations while improving
its working capital management and extending its debt maturity
profile.  Alternatively, if the GCP remained at its current level
and Moy Park's financial risk profile were to strengthen, with
debt-to-EBITDA below 3.0x on a sustainable basis, S&P could
revise upward its financial risk profile and raise the rating by
one notch.


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

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

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


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

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

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

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

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

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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,
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