TCREUR_Public/160830.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 30, 2016, Vol. 17, No. 171


                            Headlines


A Z E R B A I J A N

AZERBAIJAN: Fitch Affirms 'BB+' Long-Term Issuer Default Ratings


F I N L A N D

UPM-KYMMENE: S&P Affirms 'BB+/B' CCRs & Revises Outlook to Pos.


F R A N C E

AREVA: S&P Affirms 'B+' CCR, Outlook Remains Developing


G E R M A N Y

GELLERTSTADT BACKEREI: Gets Offers From Potential Investors
UNISTER HOLDING: 20 Potential Investors Keen on Buying Assets
WINDREICH AG: Creditors May Only Recover One-Third of Claims


I T A L Y

L'ISOLANTE K-FLEX: Fitch Hikes LT Issuer Default Rating to 'B+'
PHARMA FINANCE: Fitch Affirms 'CCsf' Rating on Class B Notes


M A L T A

VISTAJET GROUP: Fitch Lowers IDR to 'B-', Outlook Stable


N E T H E R L A N D S

AI AVOCADO: S&P Revises Outlook to Negative & Affirms 'B' CCR
LISTRINDO CAPITAL: Moody's Assigns Ba2 Rating to Senior Notes


R O M A N I A

CE HUNEDOARA: Files for Insolvency on Mounting Debts
OLTCHIM RAMNICU: SCR Plans to Acquire Some Assets


R U S S I A

MORDOVIA REPUBLIC: Fitch Affirms 'B+' LT Issuer Default Ratings
RUSNANO: S&P Affirms 'BB-/B' Issuer Credit Ratings


S P A I N

CAIXA PENEDES: Fitch Hikes Rating on Class C Notes to 'B-sf'


T U R K E Y

ANTALYA: Fitch Keeps 'B' Short Term Foreign Currency IDR
TURK EKONOMI: Fitch Issues Correction to Ratings Release


U N I T E D   K I N G D O M

ALU HOLDCO 1: S&P Affirms 'B' Corp. Credit Rating, Outlook Stable
BHS GROUP: Pension Deficit Solution Still "Months" Away
BHS GROUP: Jeff Randall Tried to Broker Pension Deficit Deal
ENTERPRISE INSURANCE: Period to Arrange Alternative Cover Ends
INNOVIA GROUP: Moody's Raises CFR to B1, Outlook Stable

METRODOME: In Administration; Seeks Protection From Creditors


                            *********


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A Z E R B A I J A N
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AZERBAIJAN: Fitch Affirms 'BB+' Long-Term Issuer Default Ratings
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Fitch Ratings has affirmed Azerbaijan's Long-Term Foreign and
Local Currency Issuer Default Ratings (IDR) at 'BB+' with
Negative Outlooks. The issue rating on Azerbaijan's senior
unsecured Foreign-Currency bond has also been affirmed at 'BB+'.
The Country Ceiling has been affirmed at 'BB+'. The Short-Term
Foreign- and Local-Currency IDRs have been affirmed at 'B' and
the issue rating on Azerbaijan's senior unsecured Short-Term
Local-Currency bond has been affirmed at 'B'.

KEY RATING DRIVERS
Azerbaijan's 'BB+' ratings balance a strong external balance
sheet and low government debt, stemming from previous years of
high oil revenues, with a heavy dependence on oil, an
underdeveloped policy framework and a weak banking sector.

Azerbaijan's 'BB+' IDRs reflect the following key rating drivers:

The plunge in oil prices has hit Azerbaijan hard. A delayed and
poorly communicated exchange rate devaluation and subsequent
plunge in capital spending is reverberating across the economy
and increasing strains in the banking sector. The authorities
acknowledge the need to reform the state-led capital spending-
driven growth model of the past decade and changes in personnel
and institutions have been welcomed by local observers. Steps are
being taken to improve the business environment and to reorient
the growth strategy toward the private sector. The capacity to
implement change and willingness to tackle vested interests
remain to be proven.

Fiscal performance is being hit by the fall in oil prices and a
consolidated general government deficit of 7.3% of GDP is
forecast for 2016 (the 'BB' median is a deficit of 3.7% of GDP).
The deficit compares favorably with Fitch's previous forecast of
12.5% of GDP due to a modest improvement in our oil price
assumptions and a much sharper than expected fall in capital
spending. Capex was only 31% of the budgeted amount in 1H16,
reflecting a reassessment of plans and a desire to not put more
pressure on the exchange rate. Tax revenues were slightly above
target driven by a combination of inflation and improved
administration. The deficit is forecast to narrow over the
forecast period due to rising oil prices.

Azerbaijan has ample buffers to finance the deficit. Assets held
by the State Oil Fund of Azerbaijan (Sofaz) were USD35.1 billion
at end-June (95% of forecast 2016 GDP), up by USD1.5 billion over
1H16. Fitch assumes a modest decline over 2H16 as capital
spending is stepped up. The transparency of Sofaz's financial
stocks and flows is greater than for the sovereign wealth funds
of most higher rated oil producers. Government debt/GDP is
forecast to rise modestly from the projected end-2016 level of
31% of GDP (peer median 51.4% of GDP)

Official FX reserves are in line with the peer median, but at
around USD5.5 billion are well down on the November 2014 level of
USD16 billion, after a failed attempt to defend the currency. The
stabilization in 2016 reflects both an improvement in the balance
of payments and the proportionate increase in the use of Sofaz
assets to meet local FX requirements. Although pressure on
reserves has eased, confidence in the manat has not been
restored.

The external balance sheet remains strong despite the fall in oil
prices. Sovereign net foreign assets are forecast at 84.3% of GDP
at end-2016 compared with a peer median of -0.7%. Banks and the
non-bank private sector also net external creditors. Import
compression is expected to return the current account to surplus
in 2016.

The weakness of the banking sector, which Fitch's Banking System
Indicator rates at 'b', is being exacerbated by the devaluation
and shrinking economy. NPLs rose to 8.4% at end-June, from 6.9%
at end-2015 according to Central Bank data. However, Fitch notes
weaknesses in reporting standards. The size and relative health
of some parts of the banking sector means that potential
recapitalization requirements would be not be onerous for the
sovereign. With deposit dollarization around 80%, there is also
an underlying shortage of local currency liquidity and the
monetary transmission mechanism is impaired.

The fallout from the devaluation and the plunge in capital
spending has hit growth, with the economy contracting by 3% yoy
over the first seven months of 2016, and the non-oil sector
shrinking by 5.4%.The pace of the yoy decline in non-oil growth
is slowing and Fitch assumes that it will turn positive in 2017,
reflecting greater confidence in the exchange rate, higher
capital spending and an improvement in the external environment.
Large energy projects will support growth over the medium term;
production from the Shah Deniz 2 gasfield is expected to start in
2H18.

Inflation has been stoked by the devaluation and has been in low
double-digits so far in 2016. It is expected to fall back into
single digits in 2017 as the devaluation drops out of the annual
comparison. Nonetheless, at a forecast 6% in 2017 it will be
above the peer median. Inflation volatility is nearly four times
greater than the 'BB' median.

Tensions with neighboring Armenia are a potential rating
consideration, and the security environment in the region has
deteriorated since our last review. In April, armed conflict in
the disputed region of Nagorno-Karabakh reached its most serious
level since the 1994 ceasefire, and dozens of soldiers were
killed on both sides. A truce was called on 3 April, but tensions
remain high. A permanent solution to the conflict appears some
way off, but the continued active involvement of the OSCE Minsk
Group indicates that a prolonged outbreak of fighting is
unlikely. Fitch's base case is that the conflict will remain
frozen during the forecast period.

Structural indicators are mixed relative to 'BB' peers. Even
after devaluation, GDP per capita (on a PPP basis) is in the top
half of the 'BB' category. Ease of Doing Business scores are
above the peer median and the authorities are taking steps to
address key regulatory bottlenecks. Governance indicators, as
measured by the World Bank, are significantly below the peer
median. Planned constitutional reforms could further strengthen
the power of the presidency.

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

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

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

   -- External finances: +2 notches, to reflect the size of Sofaz
                         assets and their reserve-like function,
                         and the very large net external creditor
                         position.

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


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F I N L A N D
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UPM-KYMMENE: S&P Affirms 'BB+/B' CCRs & Revises Outlook to Pos.
---------------------------------------------------------------
S&P Global Ratings revised its outlook on Finland-based forest
and paper products group UPM-Kymmene Corp. to positive from
stable.  At the same time, S&P affirmed its 'BB+/B' long- and
short-term corporate credit ratings on the company.

S&P also affirmed its 'BB+' issue rating on UPM's senior
unsecured debt.  The recovery rating remains at '3', indicating
S&P's expectation of meaningful recovery (50%-70%; higher half of
the range) in the event of a payment default.

The outlook revision follows UPM's continued strong cash flow
generation, which has further strengthened the company's credit
metrics.  Although S&P still lacks clarity on the company's
financial policy, S&P now thinks there is a higher likelihood of
a one-notch upgrade in the coming 12 months if the company
maintains large headroom within its financial risk profile or if
the company announces its intent to maintain credit metrics
commensurate with an investment-grade rating.

"In line with our expectations, UPM has continued to improve its
leverage thanks to improving earnings generation and continued
low investment levels.  UPM's profitability improved markedly in
the first half of 2016 as new investments started to contribute
to earnings while both variable and fixed costs were lower than
previously.  This resulted in an adjusted EBITDA margin of 15.3%
for the 12 months up to June 30, 2016, compared with 12.4% for
the same period a year earlier.  The improved profitability,
paired with investment levels contained at slightly above EUR400
million for the last 12 months, has led to ample free cash flow
and, in turn, stronger credit metrics with funds from operations
(FFO) to debt of about 46% at June 30, 2016 (compared with 28% a
year earlier).  As such, we now expect that the company could
maintain FFO to debt of above 30% and consider UPM's credit
metrics to be commensurate with a higher rating.  We think it is
likely that the company will clarify its intent with regards to
leverage level and financial policy in the coming 12 months,
which could lead us to raise the rating," S&P said.

"We think UPM's business risk profile is supported by its
conservative business model.  The company focuses on being a cost
leader in capital intensive segments such as pulp, graphic paper,
and energy generation.  The company is continuously invests in
its asset base to enhance competitiveness and has taken several
measures to dispose of underperforming assets in the past year
(i.e. graphic paper machines).  While individual business
segments are exposed to cyclicality and volatility, we think that
the conglomerate set-up with business segments along the value
chain leads to a gradually more stable performance on the group
level. UPM's large size, global footprint, and broad
diversification are further supporting factors for its business
risk profile.  These strengths are partly offset by the company's
still large exposure to struggling European graphic paper
industry (about 45% of group sales), which suffers from
structurally declining demand, overcapacity, and pressure on
prices.  UPM is also exposed to cyclicality and fierce
competition in its pulp business, where large capacity additions
from South American companies could lead to a period of price
pressure.  In addition, its energy segment is exposed to
currently weak electricity prices in the Nordic region," S&P
noted.

In S&P's view, UPM's financial risk profile reflects its strong
discretionary cash flow generation on the back of high
operational cash flows and a conservative investment policy in
recent years. In addition, S&P views positively the group's low
interest costs and recent debt repayments.  This, alongside
strengthened EBITDA generation, has improved credit metrics.
These strengths are partly offset by UPM's exposure to cash flow
volatility in a large part of its business and a history of
recurring periods with pressured credit metrics.  Furthermore,
S&P regards UPM's financial policy as a weakness, given the lack
of clear guidance regarding a target leverage level.

UPM has a 25% indirect share in the nuclear operator Teollisuuden
Voima Oyj (TVO) through its shareholding in Pohjolan Voima Oyj
(PVO), from which it buys electricity at cost.  Although UPM does
not provide a guarantee for any of TVO's debt, all shareholders
in TVO are obliged to cover their proportionate share of TVO's
fixed and variable costs related to energy generation, which
include interest expenses.  S&P also notes that UPM has
indirectly provided funding to TVO in the form of shareholder
loans through PVO to support funding of a new third reactor.
While S&P acknowledges that UPM benefits from the stable
electricity sourcing at production cost, we also recognize that
market prices have significantly decreased over the past few
years, while TVO's production costs will increase when the new
reactor comes into operation.  Although S&P currently do not
adjust UPM's debt for any of TVO's liabilities, it will continue
to monitor the benefit for UPM of its indirect shareholding in
TVO versus its obligations.

In S&P's base case for UPM, S&P assumes:

   -- Eurozone GDP to increase by 1.7% in 2016 and 1.3% in 2017,
      compared with about 1.6% in 2015.

   -- Demand for publication paper in Europe falling by about 5%
      on average per year for the next five years, with newsprint
      remaining the weakest grade and office paper facing stable
      demand, and pricing for paper stabilizing in 2016 following
      declines in 2015.

   -- Pulp prices decreasing on average, with the hardwood pulp
      grade (about two-thirds of UPM's pulp capacity) prices
      dropping by up to 10% in 2016, due to new capacity coming
      online in Latin America, and softwood pulp prices remaining
      stable.

   -- UPM revenues decreasing by 2%-3% per year in 2016 and 2017
      as weaker pulp, energy, and publication paper prices more
      than offset the impact of increasing volumes driven by
      ramp-up at the Changshu specialty paper mill and Kymi pulp
      mill.

   -- S&P Global Ratings' adjusted EBITDA margin improving to
      about 17% on the back of continued cost-saving initiatives
      and the ramp-up of UPM's expansion investments in more
      profitable segments.

   -- Capital expenditures (capex) of about EUR400 million in
      2016, as guided by management.

   -- Dividends increasing in line with operational cash flow
      improvements.

   -- No material mergers or acquisitions.

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

   -- FFO to debt at about 55%-60% in 2016.
   -- Discretionary cash flow to debt of about 25%-30% in 2016.
   -- Further improvements in credit metrics in 2017 and 2018, if
      the company continues to repay debt.

The positive outlook indicates that S&P could raise the long-term
rating to 'BBB-' in the coming 12 months if S&P is confident that
UPM's credit metrics will not materially deteriorate or if the
company publicly states a financial policy in line with S&P's
expectations for an investment-grade rating.

S&P could revise the outlook to stable if UPM's credit metrics
were to deteriorate markedly from the current levels, such that
FFO to debt fell below 30%.  This could be the result of a large
acquisition or increasing capex in combination with sharply
deteriorating business performance.  S&P could also revise the
outlook to stable if the company indicated its intentions to
maintain financial flexibility, with credit metrics at current
levels not deemed to be sustainable.

For a higher rating S&P would expect UPM to maintain a ratio of
FFO to debt of above 30% at all times and that this is supported
by its financial policy.  S&P would therefore expect the company
to maintain a conservative business approach with limited
acquisitions and a careful approach to expansionary investments.


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AREVA: S&P Affirms 'B+' CCR, Outlook Remains Developing
-------------------------------------------------------
S&P Global Ratings said that it has affirmed its 'B+' long-term
corporate credit rating on France-based nuclear services group
AREVA.  The outlook remains developing.

At the same time, S&P affirmed the 'B' short-term corporate
credit rating on AREVA.

S&P also affirmed its 'B+' rating on AREVA's senior unsecured
debt.  The recovery rating is unchanged at '3', indicating S&P's
expectation of recovery in the higher half of the 50%-70% range
in the event of a default.

The affirmation stems mainly from our belief that the group is so
far on track to achieve its plan to focus on the nuclear fuel
cycle, cut costs, and dispose of some key assets, even though S&P
thinks that material execution risks remain.  AREVA has recently
confirmed its intention to raise EUR5 billion of new equity,
supported by the French government, by Jan. 20, 2017, when its
EUR1.2 billion (currently undrawn) credit facility expires.  If
there is a delay to the capital increase, AREVA's weak liquidity
will have to be addressed by a new shareholder loan to be
available by the end of November, assuming the necessary approval
has been obtained from the European authorities.

The timing of the capital increase and AREVA's wider
restructuring depends on approval from the European Commission,
and related conditions:

   -- A firm offer from a minority investor for a stake in AREVA
      New Co (the subsidiary that will combine the key nuclear
      fuel cycle operations, excluding reactors and services and
      other noncore activities); and

   -- Disposal of material assets, notably AREVA NP, for which a
      memorandum of understanding with EDF was recently signed,
      but remains subject to the French nuclear authorities'
      satisfactory review of the Flamanville reactor pressure
      vessel (results likely by early 2017).  Therefore S&P
      expects the sale will be completed only in the second half
      of 2017.

AREVA's first-half 2016 results were largely in line with S&P's
expectations.  Although operating performance was somewhat
stronger, debt had increased due to a larger working capital
outflow than S&P anticipated.  And AREVA's credit measures remain
unsustainable, in S&P's view, with the S&P Global Ratings-
adjusted debt-to-EBITDA ratio above 10x.  However, S&P views as
positive the increase in AREVA's order backlog to EUR32.8 billion
(up 13% since year-end 2015) and the reduction of its cost base.
On the negative side, the continued fall in commodity (and
uranium separative work units) prices have led to a large
impairment and provisions in the mining and front-end businesses,
pointing to the risk of lower longer-term recovery prospects.  In
the medium term, AREVA's EBITDA will benefit from its contracted
backlog and limited exposure to spot prices.

S&P still sees a high likelihood of AREVA receiving extraordinary
government support, due to its important role as France's leading
nuclear services provider, and its very strong link with the
state, which owns 87% of AREVA.  S&P therefore adds three notches
of uplift to its assessment of AREVA's stand-alone credit
profile.

AREVA's highly leveraged financial risk profile reflects its very
high adjusted debt of more than EUR9 billion as of June 30, 2016,
which S&P forecasts will increase further this year, given
continued significant uses of cash.  S&P assumes free operating
cash flow (FOCF) will remain negative at maximum -EUR1.5 billion
for full-year 2016.  The main reason for the cash burn stems from
AREVA's discontinued activities, notably the troubled Finnish
Olkiluoto 3 (OL3) European Pressurized Reactor reactor and other
large contracts at the reactors and services segment.

S&P notes that AREVA is contemplating a transformational change
with the creation of its subsidiary New Co, whose business scope
will encompass mining, chemistry, uranium enrichment, and fuel
recycling.  These activities are showing adequate resilience,
despite the continuously difficult operating environment,
characterized by falling spot prices for uranium and enrichment
separative work units.

The developing outlook reflects S&P's view of AREVA's
unsustainable capital structure and liquidity position in 2017,
depending on the ongoing restructuring and planned capital
increase.

Specifically, S&P could take a positive rating action if AREVA
succeeds in raising about EUR5 billion new equity by Jan. 20,
2017, according to plan and before its EUR1.2 billion revolving
credit facility (RCF) expires.  This would result in a much more
sustainable capital structure, in S&P's view.  Additional upside
would stem from tangible progress on the company's plan to
dispose of nonstrategic assets (including AREVA NP) for a total
of EUR2.9 billion by year-end 2017, achieve cost savings, and
reduce negative FOCF over the medium term.

Conversely, if AREVA does not receive the shareholder loan or
obtain approval for the capital increase by the end of November
2016, S&P could lower the ratings by one or several notches.
This is because, without such measures, the company faces a
liquidity shortfall in 2017.

Other risk factors that could create downside rating pressure
relate to:

   -- The timing of the European authorities' approval of the
      state's capital injection and the need for a firm offer
      from a minority investor in New Co;

   -- The French nuclear authorities' ongoing testing of the
      Flamanville reactor pressure vessel, which is expected to
      be concluded in the first half of 2017 (currently assumed
      after the capital increase).  Although not S&P's base case,
      if unsuccessful, it would entail major costs and raise the
      requirement for financial support, while potentially
      jeopardizing the disposal of AREVA NP;

   -- The outcome of the ongoing audit regarding possible
      irregularities in the manufacturing tracking records for
      equipment at AREVA NP's Le Creusot plant, which could cause
      reputation issues or costs to repair defective equipment;
      and

   -- The complexity of the state's future risk and liability
      assumptions in relation to OL3 and associated outstanding
      litigation claims related to TVO.



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GELLERTSTADT BACKEREI: Gets Offers From Potential Investors
-----------------------------------------------------------
WorldBakers reports that the PLUTA Rechtsanwalts GmbH
restructuring expert, Stefan Kahnt -- leipzig@pluta.net -- is
currently in the process of finding an investor for the bakery
Gellertstadt Backerei GmbH. He has already received initial
offers from several potential investors, the report says.

According to WorldBakers, negotiations will take place in the
next few days or weeks to ensure that a long-term solution for
the traditional bakery will be found in the near future.
WorldBakers relates that following the decision taken on Aug. 1,
2016, the Local Court of Chemnitz opened insolvency proceedings
according to plan and appointed Kahnt as the insolvency
administrator for Gellertstadt Bakery.

WorldBakers says Kahnt is continuing business operations while
simultaneously implementing the necessary restructuring measures.
This has involved closing seven of the 28 branches in total, with
effect from August 1, 2016, since it was not economically
possible to continue their operation. The branches affected by
these measures are those in Bannewitz, Cottbus, Gera, Glashutte,
Lauchhammer, Magdala and Schwarzheide. A total of 13 employees
had to be made redundant, the report discloses.

In the remaining 21 branches, based in Saxony and Thuringia, it
has been possible to continue the full scope of business
operations. WorldBakers notes that customers can continue
shopping at these stores and can count on obtaining bakery
products of a proven high quality. At present, the Hainichen-
based bakery has a workforce of 95 employees. Some of the
original 130 employees decided to leave the company at their own
request, while some time-limited employment contracts expired,
WorldBakers relates.

"Reducing the number of branches is a difficult but necessary
step in the restructuring process. Business operations are
continuing at 21 branches. Now the task is to find a buyer for
the bakery," WorldBakers quotes Kahnt as saying.  "Currently we
are holding promising talks with several investors."

The insolvency administrator aims to provide the traditional
bakery and its employees good prospects of a successful future,
the report adds.


UNISTER HOLDING: 20 Potential Investors Keen on Buying Assets
-------------------------------------------------------------
fvw reports that rival travel portals and financial investors are
believed to be the main potential buyers of Unister which is now
up for sale following the death of founder Thomas Wagner in a
plane crash last month.

Some 20 interested parties have been able to look at Unister's
books since mid-August, the report says.  According to fvw, the
group's insolvency administrator Lucas Flother, who has appointed
Australian investment bank Macquarie to find a buyer for
Germany's largest online travel retailer, claimed that there is
"enormous demand for the Unister Group as well as for individual
assets".

fvw relates that Flother aims to seal a deal by the end of
September while staff wages are still being paid by the German
Employment Agency under the country's insolvency laws. About 900
of the group's 1,100 employees work for the insolvent holding
company or insolvent subsidiaries, says fvw.

Unister as a whole could be worth up to EUR130 million, with its
two main assets (which are trading normally), holiday portal Ab
In Den Urlaub valued at EUR50 million and flight tickets portal
Fluege.de at EUR40 million respectively, fvw discloses citing
media reports. These figures have been denied by Unister,
however. The group's debts are put at between EUR80 million and
EUR100 million.

Unister's travel businesses, including Ab In Den Urlaub,
Fluege.de and insolvent tour operator Urlaubstours, had combined
revenues estimated at EUR1,900 million last year, FVW relates.
This figure is likely to drop significantly this year due to the
insolvencies and associated publicity, although Flother claims
that sales have now been "stabilised". The package holiday portal
'Ab In Den Urlaub' and flight-only portal 'Fluege.de' are both
prominently displayed on Google search results once again.

Expedia, the number two holiday portal in Germany with estimated
revenues of about EUR1,300 million, is seen as a possible buyer,
fvw notes. In an interview with fvw, Germany manager Andreas Nau
declined to say whether the listed company might be interested in
Unister but stressed that Expedia Germany is "highly profitable".

One potential investor, according to experts and media reports,
is media group Pro Sieben Sat 1, which owns the '7 Travel'
business, which is seen as the third-largest German online travel
retailer with revenues of about EUR850 million, fvw relays.

Another possible buyer is number four, Holidaycheck, 60% owned by
German publishing group Burda, and with estimated revenues of
EUR805 million, according fvw.

It is unclear whether financial investors, who could be ready to
pay a high price, might also be interested in Unister, fvw notes.
Two recent major deals involving private equity firms were TUI's
sale of Hotelbeds to Cinven for EUR1.2 billion and the takeover
of Kuoni by Sweden's EQT for CHF1.4 billion (EUR1.2 billion).

                           About Unister

Unister Holding GmbH is a German operator of travel, e-commerce
and news websites.  The Leipzig-based company operates more than
40 websites and employs about 1,100 people.

As reported in the Troubled Company Reporter-Europe on July 20,
2016, Bloomberg News said Unister Holding GmbH filed for
preliminary insolvency proceedings after its managing
director died in a plane crash.  According to Bloomberg, the
company said on July 18 in a statement that Unister, known for
hiring celebrities including soccer star Michael Ballack to woo
users to portals such as holiday-booking service ab-in-den-
urlaub.de, filed with a Leipzig court.  Lucas Floether has been
appointed as the company's preliminary administrator, Bloomberg
said.

Unister's founder and managing director Thomas Wagner, 38, died
July 14 in Slovenia when his plane crashed en route from Venice
to Leipzig, Bloomberg disclosed.


WINDREICH AG: Creditors May Only Recover One-Third of Claims
------------------------------------------------------------
Volker Votsmeier and Franz Hubik at Handelsblatt report that
creditors at insolvent energy company Windreich may get only
about a third of their original investment back.

According to a report obtained by Handelsblatt, the report by the
Windreich administrator Holger Blumle shows that investors may
receive just EUR86 million when insolvency proceedings are
completed, out of a total of EUR271 million claimed.

Many of the affected creditors are bondholders, Handelsblatt
notes.  The remaining claims are from financiers like the
privately owned Bank J. Safra Sarasin in Switzerland, smaller
cooperatives, savings banks and some institutional investors,
Handelsblatt discloses.

Windreich AG is a German offshore wind developer.

In September 2013, Windreich filed for insolvency and its chief
executive stepped down after financing talks for a 400 megawatt
(MW) project stalled.

In November 2013, a local court in Esslingen named Holger Blumle
of the Schultze & Braun law firm as insolvency administrator.


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I T A L Y
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L'ISOLANTE K-FLEX: Fitch Hikes LT Issuer Default Rating to 'B+'
---------------------------------------------------------------
Fitch Ratings has upgraded Italy-based elastomeric insulation
producer L'isolante K-Flex Spa's (K-Flex) Long-Term Issuer
Default Rating (IDR) to 'B+' from 'B' with Stable Outlook. It has
also upgraded the senior unsecured rating of the group's
EUR100 million bond to 'BB-'/'RR3' from 'B+'/'RR3'.

The upgrade reflects the group's good track record of delivering
consistently profitable growth, reducing key-man risk and
improving product diversification. Its capital structure is
already commensurate with a 'B+' rating and is supported by
healthy trading and a prudent financial policy that focuses on
working capital and procurement optimization. Fitch expects funds
from operations (FFO) adjusted net leverage of below 3.0x during
the forecast horizon.

The bond is rated one notch higher than K-Flex's IDR to reflect
its above-average recovery rate (RR3), as a result of the group's
low leverage for its ratings. The instrument rating benefits from
the lack of secured debt ahead of the bond. Any material secured
debt raised above the notes in the capital structure could result
in a downgrade of the instrument rating.

KEY RATING DRIVERS
Diminishing Key-Man Risk
Fitch believes that key man risk is reducing, as the group
continues to grow. K-Flex's management comprises highly-
qualified, externally hired staff. These have been put in place
to manage subsidiaries locally, following the group's
international expansion. The group is headed by members of the
founding family and the current CEO remains the architect of the
group's strategy. However, we believe K-Flex could continue to
run as a successful operation with limited reliance on a single
person.

Growing Product Offering
K-Flex's end-market diversification is a credit strength. The
group serves industries, ranging from industrial and oil & gas,
to train and shipbuilding applications and continues to launch
new products widening its offerings. In 2015 K-Flex launched a
range of heating, ventilating, and air conditioning (HVAC) and
industrial tapes and developed new solutions for acoustic
insulation, while in 2016 it has introduced new products for
passive fire protection. Fitch believes cross-selling
opportunities among different products could positively sustain
further top line growth.

Good Operating Track Record
The group's ability to deliver consistently healthy growth at
growing margins exceeds Fitch's previous expectations. Operating
performance further improved in 2015 and revenue has more than
doubled over the past eight years, while EBITDA margins have been
in the high teens since 2011. Fitch expects continued healthy
EBITDA margins in the high teens and FFO margins of above 10%.
The group's distribution network and leading market positions in
the concentrated elastomeric insulation market will provide some
barriers to entry against near-term margin erosion.

Leverage Under Control
The group's FFO adjusted net leverage improved to 3.2x at end-
2015 and Fitch expects leverage to fall below 3.0x in the next 12
months. Fitch believes that the group would be able to continue
deleveraging, with additional capex or acquisitions of around
EUR25 million-EUR30 million annually. Management's intention to
reinvest earnings without returning dividends to its shareholders
is credit positive, and we expect this policy to continue over
the medium term.

Above-Average Recovery
Fitch calculates above-average recoveries for K-Flex's EUR100
million senior unsecured bond, as a result of the group's low
leverage. This results in a senior unsecured rating of 'BB-
'/'RR3'/64%. Our recovery is based on an estimated post-distress
EBITDA of EUR34 million as a minimum required for the company to
continue operating as a going concern. Fitch also applies a 5.0x
distress enterprise value /EBITDA multiple, consistent with
K-Flex's peers, and deduct a 10% administrative charge.

KEY ASSUMPTIONS
  -- Around 4% revenue growth supported by capex.
  -- Modest margin improvements, with EBITDA increasing towards
     20%, driven by logistics and distributions management.
  -- Capex of around EUR25m-EUR30m annually.
  -- No cash return to the shareholders in the next three years.

RATING SENSITIVITIES
Positive: Future developments that may, individually or
collectively, lead to positive rating action include:
-- A continuous improvement in business risk profile.
-- FFO adjusted net leverage below 2.0x.
-- EBITDA margin increasing towards 20% on a sustained basis.
-- Sustainably positive FCF.

Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
-- EBITDA margins towards the mid-teens.
-- FFO adjusted net leverage above 4.0x.
-- Negative free cash flow through the cycle.
-- Liquidity and covenant issues.

LIQUIDITY
The group's liquidity comprises unrestricted cash of EUR48
million (adjusted for EUR10 million of cash required for working
capital swings) at end-2015 and EUR50 million in undrawn
committed facilities. This is sufficient to cover EUR50 million
of roll-over bank debt and EUR8 million borrowings maturing in
2016. There are no impending refinancing needs until the maturity
of its EUR100 million bond in 2020.


PHARMA FINANCE: Fitch Affirms 'CCsf' Rating on Class B Notes
------------------------------------------------------------
Fitch Ratings has affirmed Pharma Finance 3 S.r.l.'s (PF3) notes
and simultaneously withdrawn the ratings, as:

  EUR32.3 mil. class A: affirmed at 'CCCsf'; Recovery Estimate:
   65%; withdrawn
  EUR6.1 mil. class B: affirmed at 'CCsf'; Recovery Estimate: 0%;
   withdrawn
  EUR9.5 mil. class C: affirmed at 'AAAsf'; Outlook Stable;
   withdrawn

PF3 is a securitization of loans granted to Italian pharmacists
to fund the purchase of licenses and premises, or of quotas of
company-owning and managing pharmacies, or to finance other
general corporate purposes.  The loans were originated by Comifin
S.p.A. in liquidazione (Comifin), an Italian specialized lender
currently under voluntary liquidation, and now serviced by
Selmabipiemme Leasing S.p.A. (Selma).

The transaction was last reviewed on 27 May 2016.

                         KEY RATING DRIVERS

Withdrawal for Commercial Reasons
Fitch has chosen to withdraw the ratings of PF3 for commercial
reasons.  The agency will no longer provide ratings or analytical
coverage for the notes.

The affirmation was based on the current transaction structure
and performance to date.  Fitch considered these key rating
drivers:

Some Delinquent Loans Curing
The total numbers of contracts reported as defaulted are 59 on a
total of 132 still outstanding loans, one more than in our review
in May 2016; however, only seven out of the remaining loans are
reported as delinquent, down from 29 in our previous review.

The vast majority of previously delinquent loans migrated back to
the performing status rather than rolling into default.  It
should be noted that this is the first time that delinquent loans
cure, although in the agency's view most of them may have been
technical arrears given the one-off spike in delinquencies
recorded in March 2016.

New Servicer at Work
Comifin handed over responsibilities for servicing the portfolio
to the back-up servicer, Selma, in September 2015, although
Comifin still acts as sub-servicer in charge of daily
collections. In Fitch's view, judging by the number of loans that
migrated to performing from delinquent during the last quarterly
collection period, the ability of Selma to collect cash flows
from Comifin is sound.

Uncertain Future Recoveries
The transaction is currently under-collateralized, with rated
notes of EUR47.9 mil. against performing collateral of EUR31.3
mil.  The repayment of the notes is now heavily dependent on
future recoveries from defaulted loans.  Fitch has made a number
of assumptions on future recoveries, which can impact its
Recovery Estimate, the most important of which is a base case
life time recovery rate of 30%.  Uncertainty regarding recovery
sources and timing is a driving factor of the ratings of the
class A and B notes.

Substantial PDL despite Recent Reduction
The principal deficiency ledger (PDL) has slightly decreased to
EUR32.8 mil., from EUR38.9 mil. at Fitch's last review, but still
accounts for 68% of the rated notes.

As long as the PDL is left uncleared, the step-up margin on the
rated notes will not be paid. Non-payment of these items is not
an event of default of the notes and payment of the step-up
margin is not covered by Fitch's ratings.

Fitch can no longer verify the degree of disclosure given to
investors beyond Fitch's rating report and transaction
documentation at the time of issuance.  Therefore the transaction
documents may not have the disclosure as up to date as our
criteria, which constitutes a variation to Fitch's Criteria for
Rating Caps and Limitations in Global Structured Finance
Transactions.

High Obligor Concentration Risk
Obligor concentration risk is high due to the few securitized
loans left in the pool (132), with only 50% of them being still
performing.  Decreases in credit enhancement over time due to the
inability to fully provision for the numerous defaults magnifies
the exposure of the noteholders to new defaults from the
remaining performing concentrated pool.

Class C Rating Linked to Guarantor
The rating of the class C notes is linked to the European
Investment Fund's rating (AAA/Stable/F1+), which guarantees the
interest and principal payments under those notes.

RATING SENSITIVITIES
Rating sensitivities are not applicable as the ratings on the
transaction are being withdrawn.


=========
M A L T A
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VISTAJET GROUP: Fitch Lowers IDR to 'B-', Outlook Stable
--------------------------------------------------------
Fitch Ratings has downgraded Malta-based business jet owner and
operator VistaJet Group Holding Limited's Long-Term Issuer
Default Rating (IDR) to 'B-' from 'B' and removed it from Rating
Watch Negative (RWN).  The Outlook is Stable.

Fitch has also downgraded the USD300 mil. 7.75% notes due 2020 to
'B-'/'RR4' from 'B'/'RR4' and removed them from RWN.  The notes
are co-issued by VistaJet's 99.5%-owned subsidiaries, VistaJet
Malta Finance P.L.C. and VistaJet Co Finance LLC and are
unconditionally and irrevocably guaranteed by VistaJet and its
key subsidiaries.

The downgrade has been driven by lower than expected aircraft
utilization (total flight hours/average number of aircraft) and
the effect of a depreciation of the EUR to USD in FY15 on cash
flows and aircraft yields (flight revenue/total flight hours).
Lower aircraft utilization in FY15 and 1Q16 was driven by lag
between the delivery of a significant number of new aircraft and
a longer than anticipated ramp up to their full utilization as
well as the delay in start-up of operations in the US and China.
Aircraft yields declined in FY15 and 1Q16 from FY14 due to EUR
weakness versus the USD and some weakness in the executive jet
industry.

Fitch expects funds from operations (FFO) gross adjusted leverage
in 2016 and 2017 to remain significantly above the guidelines for
VistaJet's previous 'B' rating.  Fitch also expects FFO fixed
charge cover to remain below the guidelines.

The Stable Outlook reflects VistaJet's reduced expansion plan and
our expectation that this will allow the company to generate free
cash flow and reduce leverage to well below 10x by FY18.

                         KEY RATING DRIVERS

Weaker 2015 and 1Q16 Outturn
VistaJet's financial performance for 2015 was substantially
weaker than Fitch's previous rating case.  The weakness continued
into 1Q16 when the EBITDA margin declined by 240bp to 32.3%.  The
large proportion of unhedged euro-denominated receipts has
resulted in a large reduction in its USD-reported revenues, with
limited offset from its European cost base.  VistaJet has
progressively reduced the proportion of its customer contracts
that are euro-denominated (41.3% in 1Q16 down from 65.0% in 1Q15)
which will likely reduce the impact of any further euro
depreciation on its cash flows.

Significantly Weaker Credit Metrics
For FY15, VistaJet's FFO fixed charge cover was 2.1x (3.6x in
FY14) and FFO gross adjusted leverage was 13.7x (9.6x at the end
of FY14), which was substantially weaker than our negative
guidelines of 8.0x for FFO gross adjusted leverage for VistaJet's
previous 'B' rating.  Fitch expects leverage to remain high in
2016 due to the large debt-funded fleet expansion and to decline
gradually afterwards as new aircraft purchases decline and the
debt amortizes.

Start-Up Delays
In 2015, VistaJet experienced delays in commencing domestic
operations in China and a slower than expected start in the US,
reducing the average number of hours flown per aircraft, with
revenue growth falling behind fleet growth.  For instance, delays
to permits resulted in one aircraft being non-operational for 12
months.  However, permit issues have now been overcome, and the
company has reached a critical mass and is gaining momentum with
US domestic sales.  As a result, Fitch expects the number of
hours flown per aircraft to stabilize in 2016 before gradually
increasing from 2017.

Uncertain Effect of Economic Pressures
VistaJet has curtailed its fleet expansion plans compared with
its original target of 100 aircraft by 2020.  However, fleet
growth in 2016 will still be high with the ramp up of utilization
of new aircraft spread into 2017.  Fitch expects Vistajet's
revenue and EBITDA to continue to grow quickly.  A reduction in
demand for executive jet purchases, driven by weakening economic
growth, could temper our growth expectations for VistaJet's
services.

Medium-term Performance Key
Its high rate of expansion means that VistaJet's cash flow
measures are subject to a lag compared with its capital
structure, as aircraft and matching leverage will be on balance
sheet before the aircraft start to make a meaningful
contribution.  VistaJet's forward sales are reliant on having
aircraft in place and operational before the hours can be sold.
As at the end of June 2016, the company had a backlog of USD880
mil. committed sales until end of December 2019 assuming 90%
renewal rates.  Based on the 2015 figures and early 2016
operating performance, Fitch expects credit metrics to improve
gradually and leverage to be adequate for the 'B-' rating by the
end of 2018.

                          KEY ASSUMPTIONS

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

   -- Average number of aircraft in operation in 2016 (64) and
      2017 (71).
   -- Revenue per hour (aircraft only) of below USD10,000, and
      average utilization per aircraft below 800 hours in 2016
      and below 900 hours in 2017.
   -- Continued on-balance sheet funding of new aircraft through
      finance leases.
   -- Variable costs such as fuel, ground handling, catering,
      etc. to grow in line with growth in total hours flown.
   -- No dividends pay out.

                     RATING SENSITIVITIES

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

   -- FFO gross leverage consistently lower than 8.0x, FFO fixed
      charge cover above 2.0x along with improvement in aircraft
      utilization rates leading to improvement in profit margins
      and high revenue visibility.

Negative: Future developments that may, individually or
collectively, lead to negative rating action include:

   -- FFO gross leverage above 10.0x beyond FY17 (2015: 13.7x),
      decline in FFO fixed charge cover below 1.5x (2.1x), or
      reduction in the company's contracted revenues to below 40%
      of total revenues (56%).

    -- The notes' rating could also be downgraded if our
       expectation for recovery rates fall below 31%.

                           LIQUIDITY

VistaJet's liquidity is limited and in continuous need for
external financing reflecting expansion plans.  VistaJet had
USD38.3 mil. of cash at the end of FY15 and USD60.2 mil. at the
end of 1Q16.  Fitch's estimates for 2016 include a free cash
outflow of USD401 mil., around USD400 mil. of cash inflow from
financial lease drawdown to fund the aircraft purchases and debt
amortization of USD136 mil.  VistaJet raised a USD81 mil.
aircraft financing in 1Q16, which will help fund the difference.
Vistajet plans to raise equity in 2H16 which would improve
liquidity and reduce leverage.  Fitch do not factor this into
current liquidity. Fitch forecasts free cash flow will remain
negative until 2017.

FULL LIST OF RATING ACTIONS

VistaJet Group Holdings SA
  Long-Term IDR downgraded to 'B-' from 'B', off RWN, Outlook
   Stable

VistaJet Malta Finance P.L.C.
  Senior unsecured USD300m notes due 2020 downgraded to 'B-
   '/Recovery Rating 'RR4' from 'B'/'RR4'.

VistaJet Co Finance LLC
  Senior unsecured USD300m notes due 2020 downgraded to 'B-
   '/Recovery Rating 'RR4' from 'B'/'RR4'.


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


AI AVOCADO: S&P Revises Outlook to Negative & Affirms 'B' CCR
-------------------------------------------------------------
S&P Global Ratings said that it had revised its outlook on Dutch
enterprise resource management (ERM) software vendor AI Avocado
Holding B.V. (Unit4) to negative from stable and affirmed its 'B'
long-term corporate credit rating on Unit4.

At the same time, S&P lowered to 'B' from 'B+' its issue ratings
on Unit4's existing senior secured debt, consisting of a
EUR440 million term loan, a $30 million incremental facility, and
a EUR72 million revolving credit facility (RCF), and removed
these ratings from CreditWatch with negative implications, where
S&P had placed them on June 14, 2016.  S&P revised the recovery
rating to '3' from '2'.

In addition, S&P affirmed its 'B' issue rating on the company's
EUR230 million senior secured term loan issued in June 2016.  The
recovery rating on all the senior secured facilities is now '3',
indicating S&P's expectation of meaningful recovery in the lower
half of the 50%-70% range in the event of a payment default.

S&P revised the outlook to negative because of our assessment
that Unit4's operating performance increases the risk that the
company may not be able to strengthen its credit metrics as
quickly as S&P previously expected.  Despite solid performance in
its Software-as-a-Service (SaaS) segment, which grew revenues by
13% in the first half of 2016, Unit4's revenues in that period
were about 1% lower year on year, mainly due to significantly
lower revenues from professional services, and additionally due
to the shift from license to SaaS revenues.  Over the same
period, its EBITDA before nonrecurring items decreased by about
4%, compared with S&P's previous forecast of growth of about 4%
for full-year 2016.  This is in spite of comprehensive
restructuring and business transformation measures implemented
over the last 18 months.

Even though S&P acknowledges that the majority of the company's
EBITDA is typically generated in the second half of the year and
S&P observes a meaningful decline in spending on restructuring
and exceptional expenses, S&P thinks these operating trends will
make it more difficult for Unit4 to meet S&P's expectation of S&P
Global Ratings-adjusted EBITDA margins of at least 18% and
meaningfully positive free operating cash flow (FOCF) within a
sufficiently short timeframe.  In S&P's updated forecast, it
projects only slightly positive FOCF and adjusted EBITDA margins
of 16%-18% in 2016.  In S&P's view, this reduces the headroom for
Unit4 to absorb possible operating setbacks within the current
rating category.

"Our assessment of Unit4's fair business risk profile reflects
our view that the company's competitive position is weaker than
that of considerably larger and better-capitalized enterprise
software heavyweights, such as SAP, Oracle, and Microsoft.  These
companies enjoy a firmly established position in the wider
enterprise applications market, with higher market shares, strong
brand perception, broader product portfolios, and greater
geographic diversity of operations.  In addition, we think that
Unit4 is exposed to relatively intense competition in the market
for ERM software for upper-mid-market customers, also due to the
emergence of competitors with business models built purely on
SaaS.  In addition, we regard Unit4's operating margin as below
average relative to the wider enterprise software market," S&P
said.

"Our view of Unit4's business risk profile is supported by the
company's recent progress in transitioning to a SaaS-based
revenue model, which helps to gradually increase the share of
recurring revenues.  Revenues in Unit4's maintenance and SaaS
divisions, which we consider as mostly recurring, accounted for
about 59% of total revenues in the first half of 2016, up from
about 56% in the same period in 2015.  Furthermore, we believe
Unit4 benefits from moderate switching costs, as its ERM
solutions cover a wider range of functionalities that are more
important to the everyday operations of its clients than highly
specialized niche products of smaller enterprise software
vendors," S&P noted.

"We factor into our assessment of Unit4's financial risk profile
the company's ownership and control by financial sponsor Advent
International.  We also take into account Unit4's very high S&P
Global Ratings-adjusted debt burden, primarily consisting of
about EUR700 million in senior term loans, about EUR425 million
of shareholder loans, and modest operating lease and earn-out
obligations.  Moreover, despite a meaningful decline in
restructuring and business transformation costs and modest
revenue growth, we still expect very high S&P Global Ratings-
adjusted debt to EBITDA of about 15x-17x in 2016.  In our view,
further material deleveraging in the medium term is limited,
primarily because the shareholder loan will accrue interest and
because we assume that the company will use future free cash flow
to pursue additional small to midsize acquisitions to expand
geographically or to enhance its product portfolio," S&P said.

For S&P's financial analysis, it deconsolidates the operations of
Unit4's cloud-based enterprise resource planning software  start-
up FinancialForce, because it is funded independently, with the
exception of a limited amount of cash that may be provided to
FinancialForce by Unit4 under certain conditions following the
amendment of the senior facilities agreement in June 2016.

The negative outlook reflects S&P's view that slow organic
revenue growth, combined with persistently high operating costs,
may prevent Unit4 from achieving EBITDA margins, as adjusted by
S&P Global Ratings, of at least 18% and FOCF approaching at least
positive EUR20 million over the next 12 months.

S&P could lower the rating if weaker-than-expected operating
performance, including the inability to grow revenues, trim
operating costs, or materially reduce nonrecurring charges
prevented an improvement of adjusted EBITDA margins to at least
18%, or impeded a return to positive FOCF and EBITDA cash
interest coverage of at least 2.0x over the next 12 months.
Rating downside could also result from a weakening in Unit4's
competitive position, indicated, for example, by rising customer
churn, a decreasing share of recurring revenues, or declining
market share. In addition, S&P could lower the rating if Unit4
makes material debt-funded acquisitions or shareholder
distributions or if the company were to face unexpected liquidity
pressures.

S&P could revise the outlook to stable if revenue growth or
improvements in the cost structure resulting from the successful
implementation of Unit4's business transformation enable the
company to increase adjusted EBITDA margins to at least 18% and
FOCF toward EUR20 million.


LISTRINDO CAPITAL: Moody's Assigns Ba2 Rating to Senior Notes
-------------------------------------------------------------
Moody's Investors Service has assigned a Ba2 rating to the senior
notes to be issued by Listrindo Capital B.V., a wholly-owned
special purpose vehicle established in The Netherlands by
Cikarang Listrindo (P.T.) (Cikarang, Ba2 stable).  The proposed
senior notes will be unconditionally and irrevocably guaranteed
by Cikarang.

The outlook on the rating is stable.

Cikarang will apply the proceeds of the proposed senior notes
issuance primarily for refinancing its debt.

                         RATINGS RATIONALE

"The Ba2 rating reflects Cikarang's exclusive independent power
producer (IPP) license to provide electricity to a large and
diversified base of industrial estate customers, its two offtake
agreements with Perusahaan Listrik Negara (P.T.) (PLN, Baa3
stable) as well as the solid demand growth and payment history of
its industrial estate customers throughout the economic cycle",
says Abhishek Tyagi, a Moody's Vice President and Senior Analyst.

The ratings also reflect the company's strong reliability and
operating performance, its liquidity position, its robust tariff
structure -- which allows it to pass through foreign exchange
differences and fuel costs -- and its strong management team.

"At the same time, the ratings are constrained by exposure to
offtake risks related to PLN as well as execution risks from its
capacity expansion plans", adds Tyagi.

Cikarang faces execution risks associated with its 280MW coal-
fired power plant greenfield project, which is expected to be
fully commissioned by the first quarter of 2017.  On the other
hand, Cikarang's plan to set up a 1.1GW-1.4GW combined cycle
power plant in Indonesia is also a key factor influencing its
rating over the medium term, given the size of the project which
will roughly double Cikarang's current capacity.  As such,
material cost over-runs and/or time delays will negatively impact
Cikarang's credit profile.  However, Moody's acknowledge that the
involvement of General Electric Company (GE, A1 stable), which
has solid track record in this area, mitigates these challenges
to some extent.

In June 2016, Cikarang raised IDR2.4 trillion (approximately
$177 million) through its initial public offering (IPO) of equity
shares.  The proceeds from the IPO are predominantly earmarked
for funding its capacity expansion plans and is in line with our
expectation that future capex for Cikarang would be partially
funded by equity.

The stable ratings outlook reflects our expectation that Cikarang
will demonstrate strong operating performance and generate steady
and predictable cash flows.

Upward ratings trend will be limited over the near term, given
the execution risks associated with the company's capacity
expansion plans.  Over the longer term, an upgrade of the rating
could occur if the company's retained cash flow (RCF)/debt
exceeds 20% on a consistent basis.

The ratings will be under negative pressure if: (1) Cikarang
suffers financial strain due to unforeseen cost overruns and
related delays to its capacity expansion project; or (2) there is
a significant deterioration in its operational and financial
profiles.  Specific financial metrics that would indicate
downward ratings pressure include RCF/debt below 10%-12% on a
sustained basis.

The principal methodology used in this rating was Unregulated
Utilities and Unregulated Power Companies published in October
2014.

Cikarang Listrindo (P.T.) is an exclusive IPP that supplies
electricity to a wide range of companies in five industrial
estates in the Cikarang area, on the outsides of Jakarta.  As at
end-December 2015, Cikarang owns and operates a natural gas-fired
combined cycle power station with a total capacity of 864MW.  It
also provides 300MW of power to Perusahaan Listrik Negara (P.T.)
(Baa3 stable), which is an integrated electricity utility company
wholly owned by the Government of Indonesia (Baa3, stable).



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CE HUNEDOARA: Files for Insolvency on Mounting Debts
----------------------------------------------------
Romania Insider reports that the Alba Iulia Court of Appeal
cancelled the insolvency of CE Hunedoara at the end of May, but
the company filed again for insolvency at the end of June.

The two-month intermezzo worsened the company's financial
indicators as its total debt went up by almost EUR22.5 million,
Romania Insider relays, citing local Profit.ro.  The company's
liabilities thus reached EUR320 million, Romania Insider
discloses.

The government has been trying to save the company, the only
provider of thermal energy in the Valea Jiului area, from
bankruptcy, Romania Insider notes.

The company first entered insolvency at the beginning of the year
with debts of over EUR291 million, Romania Insider recounts.
However, the court cancelled the company's insolvency following
the appeal of the "Noroc Bun" Petrosani Union, Romania Insider
relays.  Two months later the energy producer was insolvent
again, with higher debts, Romania Insider relates.

CE Hunedoara is a state-owned energy producer.  The company had
close to 6,400 employees last year.


OLTCHIM RAMNICU: SCR Plans to Acquire Some Assets
-------------------------------------------------
Romania Insider reports that local group SCR, owned by the
Romanian investor Stefan Vuza, who owns the chemical producer
Chimcomplex Borzesti, wants to acquire some of the assets of
Oltchim Ramnicu Valcea.

According to Romania Insider, SCR wants to create an integrated
company following the acquisition.

Mr. Vuza said that he was willing to invest up to EUR100 million
in Oltchim, Romania Insider relates.  However, he is only
interested in the group's assets in Oltchim, without the Bradu
petrochemical platform next to the Arpechim Pitesti refinery,
Romania Insider notes.

Oltchim Ramnicu Valcea will be sold piece by piece to interested
investors, according to the company's new privatization strategy,
Romania Insider discloses.  It will be split into nine separate
asset packages, which will be sold either individually or
together to interested investors, Romania Insider states.

Oltchim Ramnicu Valcea is a Romanian chemical producer.


===========
R U S S I A
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MORDOVIA REPUBLIC: Fitch Affirms 'B+' LT Issuer Default Ratings
---------------------------------------------------------------
Fitch Ratings has affirmed Mordovia Republic's Long-term Foreign
and Local Currency Issuer Default Ratings (IDRs) at 'B+', Short-
Term Foreign Currency IDR at 'B' and National Long-Term rating at
'A-(rus)'. The Outlooks on the Long-Term ratings are Stable. The
region's outstanding senior unsecured domestic bond issues have
been affirmed at 'B+' and 'A-(rus)'.

The affirmation reflects Fitch's unchanged base line scenario
regarding the republic's high direct risk and weak operating
balance that will be insufficient to cover growing interest
payments over the medium term.

KEY RATING DRIVERS
The 'B+' ratings reflect Mordovia's volatile operating
performance and high direct risk, resulting from large capital
expenditure, which is mitigated by significant exposure to long-
term low-cost budget loans. The ratings also reflect Fitch's
expectation that the republic will continue to receive support
from the federal government ahead of hosting the world football
championship FIFA 2018, while its own financial flexibility will
remain weak.

Fitch projects that Mordovia's direct risk will remain high at
130%-140% (2015: 121%) of current revenue as the region will
likely to continue to record a deficit before debt variation over
the medium term. The republic has low expenditure flexibility,
which is fuelled by preparations for FIFA 2018. Fitch projects
the deficit to be above 10% of total revenue in 2016-2017 before
narrowing to 4%-5% in 2018 due to completion of infrastructure
projects.

During 7M16, Mordovia's direct risk grew to RUB38.3 billion from
RUB34.7 billion at end-2015 and we believe it could reach RUB39.2
billion by end-2016. In mitigation, 55% of the risk (RUB21
billion) is long-term budget loans that the federal government
has provided to the republic at a preferential 0.1% interest
rate. Fitch expects that Mordovia will continue to receive
support from the state over the medium term. The federal
government has already approved RUB4.6 billion budget loans for
the republic in 2016.

The republic's refinancing risk is concentrated in 2018 when
RUB12.7 billion or 33% of direct risk matures. In 2016, the
republic needs to repay RUB4.7 billion (12% of direct risk). The
risk is mitigated by already contracted budget loans. Additional
funding will come from RUB5 billion five-year bond issue that
Mordovia plans to issue by end-2016.

Fitch forecasts Mordovia's operating performance to be weak over
the medium term, with an operating balance at 4% of operating
revenue (2015: 7%) and a negative current balance due to growing
interest payments. Fitch expects that the republic's tax capacity
will remain modest due to the weak tax base and that federal
transfers will constitute a significant proportion of Mordovia's
budget, averaging about 40% of total revenue annually in 2016-
2018.

In 2015, the republic's government estimated that the republic's
economy had grown 2.8% while the national economy contracted
3.7%. The growth was supported by a developing agricultural
sector and FIFA championship-related construction. Nevertheless,
Fitch expects that the region's wealth metrics will remain low,
with GRP per capita being 70%-75% of the national median (2014:
73%).

Russia's institutional framework for sub-nationals is a
constraining factor on the region's ratings. Frequent changes in
the allocation of revenue sources and in the assignment of
expenditure responsibilities between the tiers of government
hampers the forecasting ability of local and regional governments
in Russia. In particular, the republic's budgetary performance is
reliant on support provided by the state.

RATING SENSITIVITIES
A sustainable improvement in the operating balance towards 10% of
operating revenue leading to a strengthening of the debt payback
(direct risk to current balance) towards 20 years (2015: 58
years), could lead to an upgrade.

Continuous growth of direct risk above Fitch's projections (140%
of current revenue), accompanied by an increase of the republic's
refinancing pressure and a negative operating balance, would lead
to a downgrade.


RUSNANO: S&P Affirms 'BB-/B' Issuer Credit Ratings
--------------------------------------------------
S&P Global Ratings affirmed its 'BB-/B' long- and short-term
issuer credit ratings and 'ruAA-' Russia national scale rating on
Russian state-owned technology investment vehicle RusNano.  The
outlook is stable.

The ratings reflect S&P's opinion that there is a high likelihood
that the government of the Russian Federation (foreign currency
BB+/Negative/B; local currency BBB-/Negative/A-3; Russia national
scale 'ruAAA') would provide timely and sufficient extraordinary
support to RusNano in the event of financial distress.  S&P
assess RusNano's stand-alone credit profile (SACP) at 'b'.

RusNano receives strong ongoing support from the Russian
government in the form of conditional non-timely guarantees on
all debt currently issued and on all debt to be issued in the
medium term.  In accordance with S&P's criteria for government-
related entities, its view that there is a high likelihood of
extraordinary government support is based on S&P's assessment of
RusNano's:

   -- Important role for the Russian government, which created
      RusNano to implement state policy for the development of
      the nano-technology industry in Russia.  RusNano's mandate
      is to invest in nano-tech projects and to promote these
      investments in the market.  In S&P's view, the government
      continues to treat RusNano as one of its main tools to
      support the development of high-tech industries in the
      country; and

   -- Very strong link with the Russian government, its full
      owner.  According to the state privatization plan, the
      privatization of RusNano is not contemplated over the
      period to end-2020.  S&P believes that the strong presence
      of government officials on the company's board of directors
      will help RusNano to enjoy state support going forward.
      The government has confirmed its commitment to continue
      guaranteeing RusNano's new borrowings in 2016-2018.
      Russian ruble (RUB)35.5 billion of guarantees are already
      included in the state budget law 2016 and another RUB34.5
      billion of guarantees are to be incorporated in the state
      budget law for 2017-2019.

Accordingly, the ratings on RusNano are two notches higher than
its 'b' SACP.  S&P's SACP assessment reflects RusNano's rather
weak investment portfolio performance to date.  Further
constraints, in S&P's view, are high credit risk from investments
in innovative high-tech projects that are at an early stage,
especially given Russia's deteriorated market environment.  S&P
also sees little scope for additional leverage at this rating
level--debt to adjusted equity was 1.9x at end-2015--until
portfolio liquidity and valuations are proven through material
realizations.  On the positive side, S&P notes that RusNano
reported a positive net result in 2015, after unrealized
investment writedowns led to a reported loss in 2014.

The stable outlook primarily reflects S&P's view that the strong
ongoing support that RusNano receives from the Russian government
will continue.  It also reflects S&P's view that investment
performance and the pace of realizations will slowly improve in
the coming 12 months.

S&P could take a negative rating action on RusNano in the next 12
months if S&P's assessment of its SACP weakened, and if S&P
lowered its local currency rating on Russia, or if there were
signs of a lower likelihood of timely and sufficient
extraordinary support from the government.  For example, S&P
could lower the SACP if it observed even weaker performance of
the company's investment portfolio, if the company took on
significant additional leverage, or if S&P expected possible
refinancing challenges in the coming 12 months.

S&P could upgrade RusNano if it saw an improvement in its SACP or
an increasing likelihood of extraordinary government support.
However, S&P considers this to be highly unlikely unless RusNano
is able to demonstrate a significantly improved investment
performance and realizations, while also, at worst, maintaining
its current leverage and liquidity profile.



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


CAIXA PENEDES: Fitch Hikes Rating on Class C Notes to 'B-sf'
------------------------------------------------------------
Fitch Ratings has upgraded Caixa Penedes PYMES 1 TDA, FTA's class
B and C notes and affirmed the class A notes as follows:

EUR22.4 million Class A: affirmed at 'AA+sf'; Outlook Stable
EUR44.6 million Class B: upgraded to 'A+sf' from 'BBsf'; Outlook
Positive
EUR19.4 million Class C: upgraded to 'B-sf' from 'CCCsf'; Outlook
Positive

Caixa Penedes PYMES 1 TDA, FTA, is a granular cash flow
securitization of a static portfolio of secured and unsecured
loans granted to Spanish small- and medium-sized enterprises by
Caixa d'Estalvis del Penedes.

KEY RATING DRIVERS
Rising Credit Enhancement
The class A notes have received EUR19.4 million of principal
proceeds in the last 12 months. Consequently, credit enhancement
has increased for all notes. Additionally, a steady flow of
recovery proceeds has allowed the transaction to increase the
reserve fund balance to EUR8.6 million from EUR3.7 million one
year ago, further increasing credit enhancement. The Positive
Outlook on the class B and C notes reflects Fitch's view that the
notes may be upgraded further if the pace of deleveraging
continues and obligor concentration and delinquencies remain low.

Falling Delinquencies
Loans in arrears of more than 90 days account for 1.2% of the
portfolio, down from 2.3% one year ago. Delinquencies have been
dropping from a peak of over 8% in late 2013 and are now at low
levels.

Low Obligor Concentration
The portfolio remains granular even though the transaction is in
its tail period with only 10.9% of the original portfolio left
outstanding. The largest obligor represents 1.5% of the non-
defaulted portfolio and the largest 10 obligors account for 9.3%
of the non-defaulted portfolio.

RATING SENSITIVITIES

A 25% increase in the obligor default probability or a 25%
reduction in expected recovery rates would lead to a downgrade of
up to one notch for the notes.

CORRECTION

Fitch has found that as part of the analysis performed for the
previous surveillance review (rating action commentary dated 08
September 2015), interest payments on the class B and C notes
were modelled as non-deferrable. However, the notes should have
instead been modelled to allow for the deferral of interest. When
this assumption is corrected the model-implied rating would have
been higher. This was not a key rating driver for the rating
actions listed above as the current ratings are based on a
correct model.

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 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.


===========
T U R K E Y
===========


ANTALYA: Fitch Keeps 'B' Short Term Foreign Currency IDR
--------------------------------------------------------
Fitch Ratings has revised the Outlook on the Metropolitan
Municipalities of Antalya's Long-Term Local Currency Issuer
Default Rating (IDR) to Negative from Stable and affirmed the IDR
at 'BBB-'.

Under EU credit rating agency (CRA) regulation, the publication
of International Public Finance reviews is subject to
restrictions and must take place according to a published
schedule, except where it is necessary for CRAs to deviate from
this in order to comply with their legal obligations. In this
case the deviation was caused by the revision of the Outlooks of
Turkey's IDRs to Negative from Stable on August 19, 2016. The
next scheduled review date for Antalya is December 2, 2016.

KEY RATING DRIVERS

The revision of the Outlook reflects the following key rating
drivers and their relative weights:

HIGH

Institutional Framework

Following the revision of the Outlooks on Turkey's Long-Term
Foreign and Local Currency IDRs on August 19, 2016, the Outlook
on Antalya's Long-Term Local Currency IDR is now equalized with
that on the sovereign. Since local and regional governments
usually cannot be rated above the sovereign according to Fitch's
International Local and Regional Governments Criteria, the
Outlook on Antalya's Long-Term Local Currency IDR needed to be
revised in line with that on Turkey.

The centralized nature of Turkish local governments
(municipalities in general) is reflected in the close financial
linkage between the central government and the municipalities,
exposing them to the country's macro-economic performance and
policy and socio-economic conditions.

Fitch previously assigned Antalya's IDRs on June 23, 2016. The
city's Long Term Foreign Currency IDR is unaffected by today's
rating action.

RATING SENSITIVITIES

Antalya's Long-Term Local Currency IDR and the Outlook on it, is
aligned with that of the sovereign and therefore is sensitive to
any negative rating action on the sovereign's IDR or Outlook. A
sharp increase in local and external debt and a deterioration of
the deficit before debt variation to more than 15% of total
revenues could also prompt a downgrade, although this is not
Fitch's base case scenario.

Sustainable reduction of the net overall risk, with debt to
current revenue below 50% and FX share of debt below 50% and
continuation of strong budgetary performance with operating
expenditure not higher than budgeted would be positive for the
Long-Term IDRs and National Rating.

The rating actions are as follows:

Long-Term Local Currency IDR: affirmed at 'BBB-'; Outlook revised
to Negative from Stable
Long-Term Foreign Currency IDR: unaffected at 'BB+'; Outlook
Stable
Short-Term Local Currency IDR: unaffected at 'F3'
National Long-Term rating: unaffected at 'AA+ (tur)' Outlook
Stable
Short-Term Foreign Currency IDR: unaffected at 'B'


TURK EKONOMI: Fitch Issues Correction to Ratings Release
--------------------------------------------------------
This commentary replaces the version published on 28 July 2016 to
correct the senior unsecured long-term debt ratings of Turk
Ekonomi Bankasi A.S. and Finansbank A.S. It also includes senior
unsecured debt rating of Finansbank, and the guaranteed notes and
subordinated debt ratings of Abank. The correct version is as
follows:

Fitch Ratings has downgraded the Long-Term Local Currency Issuer
Default Ratings (IDR) of 15 Turkish banks and two bank leasing
subsidiaries, and affirmed their Short-term Local Currency IDRs.
The Outlooks on the Long-Term Local Currency IDRs of all entities
are Stable.

The downgrades of the Long-term Local Currency IDRs follow
Fitch's downgrade of Turkey's Long-Term Local Currency IDR to
'BBB-' from 'BBB', as a result of which it is now equalized with
the Long-Term Foreign Currency IDR. This was driven by the change
in Fitch's sovereign rating criteria, which now requires the
presence of two key factors to achieve an uplift of the Long-Term
Local Currency IDR above the Long-Term Foreign Currency IDR,
which are not present in Turkey: (i) strong public finance
fundamentals relative to external finance fundamentals, and (ii)
previous preferential treatment of LC creditors relative to FC
creditors.

The Long-Term Foreign Currency IDRs, Viability Ratings (VR) and
National Long-Term ratings of these entities remain unaffected by
this rating action. However, due to the change in the sovereign
Long-Term Local Currency IDR, Fitch is reviewing its National
Rating scale for Turkey. Any recalibration of this scale could
result in changes to the National Ratings of the banks included
in this review and of Turkish banks in general.

KEY RATING DRIVERS - LOCAL CURRENCY IDRS OF TURKISH STATE-OWNED
COMMERCIAL BANKS, DEVELOPMENT BANKS AND TAKASBANK
The Long-Term Local Currency IDRs of the state-owned commercial
banks (T.C. Ziraat Bankasi A.S. (Ziraat), Turkiye Halk Bankasi
A.S. (Halk), Turkiye Vakiflar Bankasi T.A.O.'s (Vakifbank)), of
Turkey's development banks (Turkiye Kalkinma Bankasi (TKB),
Turkiye Sinai Kalkinma Bankasi (TSKB), Turkiye Ihracat Kredi
Bankasi (Turk Eximbank)) and of Takasbank (Istanbul Takas ve
Saklama Bankasi A.S.), Turkey's central clearing counterparty,
have been downgraded to 'BBB-' from 'BBB', following the rating
action on the sovereign Long-Term Local Currency IDR.

As a result the entities' Long-Term Local Currency IDRs continue
to be equalised with that of the Turkish sovereign, reflecting
Fitch's expectation of a high probability of support in all
cases. The banks' Short-term Local Currency IDRs have been
affirmed at 'F3'. As a result of the one-notch downgrade of their
Local Currency IDRs to the level of their 'BBB-' Support Rating
Floors, the Local Currency IDRs of Ziraat, Vakif, Halk and
Takasbank are now also in line with their 'bbb-' VRs -- a measure
of their standalone creditworthiness -- and as such are
underpinned by their VRs at their current rating level.

KEY RATING DRIVERS - LOCAL CURRENCY IDRS OF TURKISH FOREIGN-OWNED
BANKS WITH COUNTRY CEILING CONSTRAINT; SHORT-TERM FOREIGN
CURRENCY IDRS OF KUVEYT TURK AND TURKIYE FINANS
The Long-Term Local Currency IDRs of foreign-owned ICBC Turkey
A.S., Kuveyt Turk, Turkiye Finans, Burgan Bank A.S. ING Bank
A.S., Finansbank A.S., Alternatifbank A.S. (ABank) and Turk
Ekonomi Bankasi A.S. (TEB) have been downgraded by one notch to
'BBB' from 'BBB+'. In all cases the banks ratings are driven by
institutional support from higher rated foreign shareholders.
This rating action maintains the one notch between the banks' and
the sovereign's Long-Term Local Currency IDRs and continues to
take into account Turkish country risks.

The upgrade of the Short-Term Foreign Currency IDRs of Kuveyt
Turk and Turkiye Finans reflects a reassessment by Fitch of
potential liquidity support from the banks' respective parents.
The Short-Term IDRs of the remaining foreign banks are driven by
Fitch's view of potential shareholder support.

KEY RATING DRIVERS - LOCAL CURRENCY IDRS OF BANK SUBSIDIARIES
The Long-Term Local Currency IDRs of Finans Finansal Kiralama
(Finans Leasing), 99% owned by Finansbank, and Alternatif
Finansal Kiralama (ALease), 100% owned by ABank, have been
downgraded to 'BBB' from 'BBB+' mirroring the rating action on
their parents. Their support-driven Short-Term IDRs have been
affirmed at 'F2'.

RATING SENSITIVITIES
LOCAL CURRENCY IDRS OF TURKISH STATE OWNED COMMERCIAL BANKS,
DEVELOPMENT BANKS AND TAKASBANK
The banks' Long-Term Local Currency IDRs remain sensitive to
further movement in Turkey's sovereign Long-Term Local Currency
IDR and country risks. The IDRs of Ziraat, Halk, Vakifbank and
Takasbank are underpinned at their current rating level by their
'bbb-' VRs, but they are also sensitive to potential negative
rating action on the sovereign.

LOCAL CURRENCY IDRS OF TURKISH FOREIGN-OWNED BANKS WITH COUNTRY
CEILING CONSTRAINT
The foreign-owned banks' Long-Term Local Currency IDRs remain
sensitive to further movement in Turkey's Sovereign Long-Term
Local Currency IDR and to Turkey country risks. In addition, a
weakening in the ability and the propensity of their respective
parents to provide support could result in negative rating action
on the banks' ratings.

SUBSIDIARY AND AFFILIATED COMPANIES
The Local Currency IDRs of Finans Leasing and ALease are
sensitive to any changes in (i) the ratings of their parents; and
(ii) Fitch's view of the propensity and ability of their parents
to provide support in case of need.

The rating actions are as follows:

T.C. Ziraat Bankasi A.S., Turkiye Halk Bankasi A.S., Turkiye
Vakiflar Bankasi T.A.O. and Istanbul Takas ve Saklama Bankasi
A.S. - Takasbank:

Long-Term Foreign Currency IDRs unaffected at 'BBB-'; Outlook
Stable
Long-Term Local Currency IDRs downgraded to 'BBB-' from 'BBB';
Outlook Stable
Short-Term Foreign Currency IDRs unaffected at 'F3'
Short-Term Local Currency IDRs affirmed at 'F3'
Viability Ratings unaffected at 'bbb-'
Support Ratings unaffected at '2'
Support Rating Floors unaffected at 'BBB-'
Senior unsecured debt unaffected at 'BBB-'
Senior unsecured debt (short-term; Ziraat and Vakifbank)
unaffected at 'F3'
Subordinated debt rating (Vakifbank): unaffected at 'BB+'
National Long-Term rating unaffected at 'AAA(tur)'; Outlook
Stable

TKB, TSKB, Turk Eximbank:

Long-Term Foreign Currency IDRs: unaffected at 'BBB-'; Stable
Outlook
Long-Term Local Currency IDRs: downgraded to 'BBB-' from 'BBB';
Stable Outlook
Short-Term Foreign Currency IDRs: unaffected at 'F3'
Short-Term Local Currency IDRs: affirmed at 'F3'
Support Ratings: unaffected at '2'
Support Rating Floors: unaffected at 'BBB-'
National Long-Term Ratings: unaffected at 'AAA(tur)'; Stable
Outlook
Senior unsecured debt (TSKB and Turk Eximbank): unaffected at
'BBB-'

Turk Ekonomi Bankasi A.S., Finansbank A.S.:

Long-term Foreign Currency IDRs unaffected at 'BBB'; Stable
Outlook
Long-term LC IDRs downgraded to 'BBB' from 'BBB+'; Stable Outlook
Short-term Foreign Currency IDRs unaffected at 'F2'
Short-term Local Currency IDRs affirmed at 'F2'
Viability Ratings unaffected at 'bbb-'
Support Ratings unaffected at '2'
National Long-Term Ratings unaffected at 'AAA(tur)' Stable
Outlook
Senior unsecured long-term debt unaffected at 'BBB'
Senior unsecured short-term debt (Finansbank) unaffected at 'F2'

ING Bank A.S.:

Long-term Foreign Currency IDR unaffected at 'BBB'; Stable
Outlook
Long-term Local Currency IDR downgraded to 'BBB' from 'BBB+';
Stable Outlook
Short-term Foreign Currency IDR unaffected at 'F2'
Short-term Local Currency IDR affirmed at 'F2'
Viability Rating unaffected at 'bb+'
Support Rating unaffected at '2'
National Long-term Rating unaffected at 'AAA(tur)' Stable Outlook

Kuveyt Turk Katilim Bankasi A.S, Turkiye Finans Katilim Bankasi
AS:

Long-term Foreign Currency IDRs unaffected at 'BBB'; Stable
Outlook
Long-term LC IDRs downgraded to 'BBB' from 'BBB+'; Stable Outlook
Short-term Foreign Currency IDRs upgraded to 'F2' from 'F3'
Short-term Local Currency IDRs affirmed at 'F2'
Viability Ratings unaffected at 'bb-'
Support Ratings unaffected at '2'
National Long-Term Ratings unaffected at 'AAA(tur)' Stable
Outlook
Senior unsecured debt issues (sukuk) (Turkiye Finans TF Varlik
Kiralama A.S., Kuvey Turk's KT Sukuk Varlik Kiralama A.S., KT
Kira Sertifikalari Varlik Kiralama A.S.) unaffected at 'BBB'
Subordinated debt (KT Sukuk Company Limited) unaffected at 'BBB-'

ICBC Turkey Bank A.S, Alternatifbank A.S., Burgan Bank A.S.:
Long-Term Foreign Currency IDRs unaffected at 'BBB'; Stable
Outlook
Long-Term Local Currency IDRs downgraded to 'BBB' from 'BBB+';
Stable Outlook
Short-Term Foreign Currency IDRs unaffected at 'F2'
Short-Term Local Currency IDRs affirmed at 'F2'
Viability Ratings unaffected at 'b+'
Support Ratings unaffected at '2'
National Long-term Ratings unaffected at 'AAA(tur)' Stable
Outlook
USD250m senior notes (Abank) guaranteed by Commercial Bank of
Qatar unaffected at 'A+'
Subordinated debt rating (Abank): unaffected at 'BBB-'

Alternatif Finansal Kiralama A.S.

Long-Term Foreign Currency IDR unaffected at 'BBB'; Stable
Outlook
Long-Term Local Currency IDR downgraded to 'BBB' from 'BBB+';
Stable Outlook
Short-Term Foreign Currency IDR unaffected at 'F2'
Short-Term Local Currency IDR affirmed at 'F2'
Support Rating unaffected at '2'
National Long-term Rating unaffected at 'AAA(tur)' Stable Outlook

Finans Finansal Kiralama A.S.

Long-Term Foreign Currency IDR: unaffected at 'BBB'; Stable
Outlook
Long-Term Local Currency IDR downgraded to 'BBB' from 'BBB+';
Stable Outlook
Short-Term Foreign Currency IDR unaffected at 'F2'
Short-Term Local Currency IDR: affirmed at 'F2'
Support Rating unaffected at '2'
National Long-term Rating unaffected at 'AAA(tur)' Stable Outlook


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


ALU HOLDCO 1: S&P Affirms 'B' Corp. Credit Rating, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'B' long-term corporate credit
rating on Alu Holdco 1 Ltd., the parent company of aluminum
profile manufacturer Corialis group.  The outlook is stable.

At the same time, S&P assigned its 'B' long-term corporate credit
rating to 100%-owned subsidiary Alu Holdco 2 Ltd., the issuer of
the group's first- and second-lien debt.  The outlook is stable.

S&P also affirmed its 'B' issue rating on the group's first-lien
senior secured facilities issued by Alu Holdco 2, including a
EUR318 million term loan B, EUR25 million revolving credit
facility (RCF), and EUR35 million capex facility.  The recovery
rating on these debt instruments is '3', indicating S&P's
expectation of meaningful (50%-70%) recovery in the event of a
payment default.

Finally, S&P affirmed its 'CCC+' issue rating on the group's
EUR105 million second-lien loan, also issued by Alu Holdco 2 Ltd.
The recovery rating on this loan is '6', indicating S&P's
expectation of negligible (0%-10%) recovery in the event of a
payment default.

Corialis is a leading aluminum profile manufacturer in its core
markets of the U.K., France, Belgium, and Poland, with a growing
presence in the rest of Europe. Demand in Corialis' main markets
remains robust, supported by good pricing conditions.  Overall
sales grew by nearly 13% in the fiscal year 2015, ending Dec. 31,
2015, and S&P expects this growth to continue at more than 10%
for fiscal 2016.  At the same time, the group's margins are
resilient and continue to gradually rise toward 20%, supported by
tight input cost control.

Corialis differentiates itself from peers with a vertically
integrated, well-invested asset base, which has enabled it to
service core markets with an under-one-roof hub and spoke model.
The group continues to experience significant demand for its
products from the repair, remodel, and improve market, which
exhibits less cyclicality than the new-build construction market.

Tempering these strengths is Corialis' partial exposure to
cyclical new-build construction end markets.  This can result in
more volatile demand for the group's products.  Corialis'
absolute EBITDA has previously exhibited some volatility and
could do so again, especially if the group's efforts to expand
the business meet a sudden sharp drop in demand.  S&P forecasts
that the group's S&P Global Ratings-adjusted EBITDA margin will
be about 20% for the 2016 financial year.  With the exception of
a few large competitors, S&P considers the group's competitive
landscape to be highly fragmented, with medium barriers to entry.
Market entry for one specific product or service offering (for
example profile painting) would be relatively easy for a new
competitor, but replicating one of Corialis' fully vertical hub
and spoke production facilities would be far more challenging,
costly, and time consuming.  Corialis is also generating more
revenue in countries we view as high risk, such as Poland.  S&P
defines country risk as the broad range of economic,
institutional, financial market, and legal risks that arise from
doing business with or in a specific country and can affect a
non-sovereign entity's credit quality.  The group's hub in Poland
is currently experiencing headwinds from foreign exchange
translation and temporarily subdued export volumes, but prospects
for Corialis' business there remain bright.

Corialis has recently undertaken sizable capital expenditure
(capex) to invest in its U.K. and Polish hubs.  S&P considers
that capex peaked in financial 2014 to financial 2015, resulting
in weak free operating cash flows during these two years.  S&P
expects capex to return to normal levels in 2016 and beyond.

S&P's base case assumes:

   -- Revenue growth of at least 10% to more than EUR440 million;
   -- A continued, gradual improvement in the group's EBITDA
      margin to 20%;
   -- Capex of up to EUR20 million in 2016; and
   -- No major acquisitions or divestitures.

A continued macroeconomic recovery and rise in demand for
Corialis' products in its core markets is crucial to the volumes
S&P assumes in its base case.

Based on these assumptions, and with supportive market
conditions, S&P arrives at these credit measures:

   -- Debt to EBITDA of just above 5x excluding shareholder loans
      (just less than 8x including shareholder loans);

   -- FFO to debt of about 8%-9% excluding shareholder loans
      (about 5% including these instruments); and

   -- Cash interest coverage of more than 2x over the 12-month
      rating horizon.

The stable outlook reflects S&P's belief that the slow growth
environment that currently benefits the industry should continue
through 2016, and S&P expects Corialis will be able to increase
revenues and slightly improve its margins over the 12-month
rating horizon.

S&P believes that the likelihood of an upgrade is limited at this
stage because of Corialis' tolerance for high leverage and the
low prospect that the group will strengthen its credit metrics
(including shareholder loans) to a level commensurate with an
aggressive financial risk profile within S&P's rating horizon.
S&P notes that private equity sponsor ownership brings an element
of uncertainty with regard to the potential for future
releveraging, shareholder returns, and changes to the group's
acquisition or disposal strategy.

S&P could lower the ratings if Corialis were to experience severe
margin pressure or poorer cash flows, leading to weaker credit
metrics.  This could occur if the company did not curtail its
capex in time to reduce debt prior to a potential drop in
earnings.  S&P could also consider lowering the ratings if
Corialis undertook material debt-funded acquisitions or
shareholder returns, or if its cash interest coverage were to
fall to below 2x.


BHS GROUP: Pension Deficit Solution Still "Months" Away
-------------------------------------------------------
Ashley Armstrong at The Telegraph reports that BHS pensioners are
facing a protracted wait over the future of their payments, as it
will take "months" for Sir Philip Green to broker a deal to plug
the retailer's pension black hole.

The news comes as 10,000 workers face unemployment after the last
22 BHS stores closed their shutters on Aug. 27, marking the end
for one of the high street's most enduring names, The Telegraph
relates.

Sir Philip promised MPs more than two months ago that he would
"sort" BHS's pension deficit after the collapse of the retail
chain left a GBP571 million gaping hole, The Telegraph recounts.
The deficit has since swollen to about GBP700 million due to the
fall in sterling and the Bank of England's interest rate cut, The
Telegraph notes.

However, it is unlikely that the billionaire will have to pay
even half that amount as he is negotiating a deal that would
transfer his money directly to BHS pensioners, rather than the
Pension Protection Fund, The Telegraph states.

According to The Telegraph, under the mooted proposal, dubbed
"Project Atlantic" by advisers at Deloitte, thousands of short-
term former workers would be offered lump sums of up to GBP15,000
while a separate scheme would be set up to fund the future
payments to longer-serving employees.

Sir Philip wants the Pensions Regulator to drop its anti-
avoidance investigation into his ownership before he settles a
deal that would be the first voluntary contribution of its kind,
The Telegraph discloses.

Sir Philip's advisers are presenting his proposal as a swifter
solution for BHS pensioners than an attempt to recover money
through the pensions regulator's "contribution enforcement"
process -- whereby it demands money to cover the deficit, The
Telegraph states.

Frank Field, chairman of the Work and Pensions Select Committee,
as cited by The Telegraph, said that he was "not against the
Pensions Regulator dropping the investigation, providing the
settlement means that pensioners are not a penny worse off".

Mr. Field, who has engaged in a war of words with Sir Philip,
said that the tycoon was not the only one under scrutiny in the
pension negotiations, The Telegraph relays.

However, people close to the talks say that the pension
settlement is a complex process that is being negotiated to the
Regulators' timeline and the former BHS owner would prefer a
speedier solution, according to The Telegraph.

BHS Group was a British department store chain with branches
mainly located in high streets or shopping centers, primarily
selling clothing and household items.


BHS GROUP: Jeff Randall Tried to Broker Pension Deficit Deal
------------------------------------------------------------
Mark Vandevelde, Arash Massoudi and Jonathan Guthrie at The
Financial Times report that Jeff Randall, a former Sky News
presenter and BBC business editor, tried to cut short the war of
words between his friend Sir Philip Green and the retail tycoon's
outspoken critic Frank Field by brokering a deal over the pension
deficit at collapsed retailer BHS.

The ex-television journalist's previously undisclosed
intervention was aimed at broaching a peace between the
billionaire businessman and Mr. Field, the Labour MP who played a
leading role in a parliamentary inquiry that has excoriated Sir
Philip for his role in the chain's collapse, the FT says.

The talks took place at about the same time that Mr. Field, chair
of the work and pensions committee, told the FT that Sir Philip
should hand over GBP571 million to close the pension deficit if
he wanted to keep his knighthood.  But they fizzled out at the
end of May, when it became clear that the distance between two
sides was only growing wider, the FT notes.

Mr. Field, as cited by the FT, said he approached Mr. Randall in
hopes of agreeing an informal settlement that could be worked out
in detail by the pensions authorities.

Sir Philip has warned that attempts to browbeat him into agreeing
to a larger settlement could jeopardize a deal, the FT relays.
According to the FT, he has said that he is working towards a
"voluntary solution" for stricken BHS pensioners, but has broken
no laws and cannot be forced to pay up.

The former television journalist spoke to both men several times
and was confident at first that he could get them to agree, the
FT relates.  At one point he suggested to Sir Philip that he
deposit a large sum in an escrow account, which could be added to
or reduced following a final deal, according to the FT.

"I tried to help but I failed," Mr. Randall told the FT, adding
that he received no payment and had no formal advisory role.  "My
future career as an honest broker is clearly limited."

BHS Group was a British department store chain with branches
mainly located in high streets or shopping centers, primarily
selling clothing and household items.


ENTERPRISE INSURANCE: Period to Arrange Alternative Cover Ends
--------------------------------------------------------------
Neil Rose at Legal Futures reports that law firms that were
insured by the now insolvent Enterprise Insurance had until
Aug. 22 to arrange alternative cover.

The Solicitors Regulation Authority said on Aug. 22 that around
two-thirds of the 43 firms that were with the Gibraltar-based
insurer have already secured alternative cover, Legal Futures
relates.

Enterprise was declared insolvent by the Gibraltar Financial
Services Commission last month and the firms involved had 28 days
from that time to arrange alternative cover, Legal Futures
recounts.  That period ended Aug. 22, Legal Futures notes.

Enterprise has been providing cover since 2011, so firms other
than those with live policies might have open claims, Legal
Futures relays.  There will also be firms that might have closed
during this period and have run-off insurance with Enterprise,
Legal Futures states.

According to Legal Futures, all claims will now be dealt with by
the provisional liquidator with the support of the Gibraltar
Financial Services Commission, whose chief executive,
coincidentally, is former top SRA official Samantha Barrass.

"Insurance policies issued by Enterprise have not been cancelled
or disclaimed but I am unable to currently pay any claims arising
under such policies.  It is also uncertain if the company's
assets will be sufficient to meet insurance claims in full,"
Legal Futures quotes the most recent statement from the
provisional liquidator as saying.


INNOVIA GROUP: Moody's Raises CFR to B1, Outlook Stable
-------------------------------------------------------
Moody's Investors Service has upgraded the corporate family
rating of Innovia Group (Holding 3) Ltd, a leading producer of
polymer film for industrial applications and banknotes, to B1
from B2 and its probability of default rating (PDR) to B1-PD from
B2-PD.  Concurrently, Moody's has affirmed the B2 rating of the
Senior Secured Floating Rate Notes (FRNs) issued by Innovia Group
(Finance) plc.  The outlook on all ratings is stable.

The upgrade primarily reflects these drivers:

   -- Improving operating margins and cashflow generation
      following the recent disposal of its lower-margin and
      capex-intensive Cellophane division (Cello)

   -- Proceeds from the sale together with EUR5 million of cash
      will be used to prepay approximately EUR80 million of the
      company's FRNs, resulting in a reduction in leverage of
      approximately 0.7x

   -- Free cashflow will also improve following the completion of
      a number of major investment projects undertaken to meet
      the demands of new contract wins and to generate material
      energy cost savings

   -- Underlying operating performance has been favorable over
      the last 18 months and Moody's expects this trend to
      continue through 2017

                         RATINGS RATIONALE

The upgrade follows the company's announcement that it plans to
repay EUR80 million of FRNs from the sale proceeds of Cello and
cash reserves, resulting in approximately 0.7x reduction in
Moody's adjusted debt/EBITDA.  Moody's expects adjusted leverage
of around 3.8x as at the end of 2016, compared with 5.3x times as
per yearend 2015.  The EUR75 million sale price of Cello
represents a multiple of approximately 14x FY2015 reported
EBITDA.

On a pro forma basis Innovia's EBITDA margin will increase
towards 20% by the end of 2016 following the disposal of Cello,
which is relatively high in the context of peers in the industry,
benefitting from its high-margin Security business and value
added BOPP business focused on speciality products.  In addition,
the sale will have a positive effect on free cash flow, as annual
maintenance capex for Cello was high in comparison to its
contribution from EBITDA.  In FY2015 Moody's estimates that that
EBITDA contribution was approximately 7% of the group's total,
while the division consumed around 25% of capex.  Moody's expects
margins to continue to improve based on continued growth in its
most profitable Security division.

The upgrade also reflects Moody's expectation that free cash flow
and operating performance will improve now that the company's
substantial investment programme has been completed.

Innovia's B1 CFR is constrained by 1) the company's exposure to
potentially volatile raw material costs which has negatively
affected margins in the past; 2) the Films business exposure to
gradually declining tobacco end markets; and 3) a concentrated
customer base, given the consolidated nature of key end markets
including labels and tobacco and limited scale in terms of
revenues.  However the concentration among the company's
customers is mitigated to some extent, by Innovia's long track
record and relationships with key customers.

The company benefits from a good liquidity profile supported by
Moody's expectation of cash reserves of approximately EUR40
million at the end of 2016 in addition to a EUR60 million
revolving credit facility (RCF), which we expect to remain
largely undrawn.  The RCF carries one financial maintenance
covenant, which is only tested if drawn by at least EUR3 million.
In addition, liquidity is also supported by Moody's expectation
of positive free cash flow over the next 12 to 18 months.  The
next material debt maturity will be the revolver in 2019.

The rating assigned to the FRNs is maintained at B2, one notch
below the CFR, reflecting the material size of the EUR60 million
super senior revolving credit facility (RCF), which ranks ahead
of the notes.  The FRNs and revolver are secured and guaranteed
by at least 80% of assets and EBITDA, but the revolver benefits
from a priority claim in an enforcement scenario.

Rating Outlook
The stable outlook reflects Moody's expectation that Innovia will
gradually improve its operating margins thanks to continued
growth of its more profitable Security division while also
maintaining a solid liquidity position.

What Could Change the Rating Up/Down
Upside potential could build if Innovia can sustainably achieve
another step-change in credit quality evidenced by stability of
operating and financial performance through the cycle and by
further expanding its business profile.  In terms of credit
metrics, positive pressure on the ratings could develop if
Innovia's debt/EBITDA ratio (as adjusted by Moody's) falls
comfortably below 3.0x and if its FCF/debt ratio is well above
10%
Negative pressure on the ratings could occur if Innovia's
debt/EBITDA ratio increases materially above 4.0x or if its free
cash flow to debt falls towards 5%.  A deterioration in liquidity
could also have negative pressure on the rating.

List of affected ratings:

Upgrades:

Issuer: Innovia Group (Holding 3) Ltd
  Corporate Family Rating, Upgraded to B1 from B2
  Probability of Default Rating, Upgraded to B1-PD from B2-PD

Affirmations:

Issuer: Innovia Group (Finance) plc
  BACKED Senior Secured Regular Bond/Debenture, Affirmed B2

Outlook Actions:

Issuer: Innovia Group (Holding 3) Ltd
  Outlook, Remains Stable

Issuer: Innovia Group (Finance) plc
  Outlook, Remains Stable

                         PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Packaging
Manufacturers: Metal, Glass, and Plastic Containers published in
September 2015.

Innovia group is a UK-based manufacturer of biaxially oriented
polypropylene (BOPP) films for labels, cigarette pack overwrap
and food packaging.  The group also produces polymer substrates
for banknotes through Innovia Security.  In the last twelve
months (LTM) to June 30, 2016, Innovia reported sales of
EUR502.1 million.


METRODOME: In Administration; Seeks Protection From Creditors
-------------------------------------------------------------
Leo Barraclough at Variety.com reports that U.K. film distributor
Metrodome, whose slate includes Kristen Stewart starrer "Personal
Shopper," has gone into administration.

Metrodome is now in the hands of accountancy firm Cowgill
Holloway, with many of the staff pink-slipped on August 17,
Variety.com relates citing unconfirmed reports.  According to
Variety.com, the status of Metrodome's upcoming theatrical
release slate, which includes Berenice Bejo starrer "The
Childhood of a Leader" and Terence Davies' "A Quiet Passion," is
unclear, although U.K. distributor 101 Films has picked up the
rights to many of Metrodome's titles.

Warning signs have been evident for some months, says
Variety.com. In March, the CEO of Metrodome, Mark Webster, was
reported to be looking for a buyer for the company, and in July,
managing director Jezz Vernon stepped down as the company
attempted to "streamline" its management structure, Variety.com
recalls.

Variety.com notes that Metrodome's troubled state reflects that
of many smaller independent distributors, who are being forced to
walk a tight-rope every time they release a pic. Exhibitors
continue to refuse to allow release windows to be collapsed, so
denying distributors the chance to release films in theaters and
on-demand at the same time. If they could do this, they would
maximize returns from their advertising and publicity campaigns,
which might be enough to keep them afloat, Variety.com states.

Metrodome also runs Hollywood Classics, which handles the rights
to vintage movies, and international sales company Metrodome
International, whose slate includes Stephen Fry adaptation "The
Hippopotamus."


                            *********

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, Julie Anne L. Toledo, 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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