/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/160831.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 Wednesday, August 31, 2016, Vol. 17, No. 172 Headlines I R E L A N D AWAS AVIATION: S&P Lowers Rating to 'BB', Outlook Stable CAVENDISH SQUARE: S&P Affirms BB- Rating on Class C Notes DECO 10: Fitch Lowers Rating on Class D Notes to 'Dsf' HARVEST CLO VII: S&P Affirms BB Rating on Class E Notes QUIRINUS PLC: Fitch Affirms 'Dsf' Rating on Class F Loan L U X E M B O U R G ELEX ALPHA: S&P Affirms CCC+ Rating on Class E Notes N E T H E R L A N D S CAIRN CLO II: S&P Raises Rating on Class E Notes to B+ HIGHLANDER EURO: S&P Raises Rating on Class D Notes to B- JUBILEE CDO V: S&P Affirms BB+ Ratings on 2 Note Classes R O M A N I A OLTCHIM SA: Creditors Agree to Extend Reorganization Period R U S S I A ER-TELECOM: S&P Revises Outlook to Negative & Affirms 'B+' CCR S E R B I A STARI JASEN: Put Up for Sale, September 30 Public Bidding Set T U R K E Y TURKIYE IS BANKASI: Fitch Affirms BB+ Subordinated Debt Rating U N I T E D K I N G D O M BAY TV: Operations to Continue Despite Administration CATALYST HEALTHCARE: S&P Affirms 'BB+' Rating on GBP175M EIB Loan DALTONS PLANT: Cash Flow Issues Prompt Administration SABANA INC: In Administration Following "Operational Issues" WS LUSHER: Enters Administration Following Trading Losses ********* ============= I R E L A N D ============= AWAS AVIATION: S&P Lowers Rating to 'BB', Outlook Stable -------------------------------------------------------- S&P Global Ratings said that it has downgraded Dublin-based AWAS Aviation Capital Ltd. to 'BB' from 'BB+'. The outlook is stable. "The downgrade is based on our reassessment of AWAS' competitive position," said S&P Global credit analyst Betsy Snyder. Following the sale of around 100 aircraft over the previous year, AWAS' fleet comprised 218 aircraft as of May 31, 2016. The current size of the company's aircraft fleet places it among the second tier of global aircraft lessors, though its market presence is smaller than some of its competitors'. In addition, S&P believes that the company's owners may choose to take advantage of the abundant levels of capital available in the market to sell additional aircraft, further reducing AWAS' market position. Partly offsetting these trends is the somewhat improved composition of AWAS' fleet due to the reduction in its average age after the sale of older aircraft. S&P now assess AWAS' business risk profile as fair. The stable outlook on AWAS reflects S&P's expectation that the company will continue to use some of the proceeds from its asset sales to reduce its debt. This will cause its credit metrics to improve modestly as its debt and interest expense decrease, providing it with a FFO-to-debt ratio of around 10% through 2017. S&P could lower its ratings on AWAS over the next year if its FFO-to-debt ratio declines to 7%, which could be caused by a weaker-than-expected operating performance or the payment of a large dividend to its owners. It is unlikely that S&P would raise its ratings on the company over the next year given the uncertainty about its future ownership. However, S&P could raise its ratings on AWAS if its FFO-to-debt ratio increases to 12% on a sustained basis due to a better-than-expected operating performance and continued debt reduction. CAVENDISH SQUARE: S&P Affirms BB- Rating on Class C Notes --------------------------------------------------------- S&P Global Ratings raised its credit rating on Cavendish Square Funding PLC's class A1-N notes. At the same time, S&P has affirmed its ratings on the class A2, B, and C notes. The rating actions follow S&P's analysis of the transaction using data from the June 30, 2016 trustee report, and the application of S&P's relevant criteria. The transaction's post-reinvestment period began in February 2011. The class A-1N notes have amortized further since S&P's Aug. 11, 2014 review. Of the class A1-N notes, just EUR54.71 remains outstanding. From S&P's analysis, it observed that there has been a negative rating migration on the asset side resulting in an increase in the scenario default rates (SDRs) at each rating level. The SDR is the minimum level of portfolio defaults that S&P expects each CDO tranche to be able to support the specific rating level using Standard & Poor's CDO Evaluator. Comparing the June 2014 collateral portfolio with the June 2016 portfolio, S&P has observed that assets rated in the 'AAA' and 'AA' categories have reduced. At the same time, assets rated in the 'BB', 'B', and 'CCC' categories have increased. The overall rating on the pool has decreased to 'B+' from 'BB+' since S&P's previous review. To determine a rating input for assets not rated by S&P Global Ratings (for the purpose of its inclusion in CDO Evaluator) S&P has derived ratings from other NRSRO ratings. "We conducted our cash flow analysis to determine the break-even default rate (BDR) for each rated class of notes at each rating level. The BDR represents our estimate of the maximum level of gross defaults, based on our stress assumptions, that a tranche can withstand and still pay interest and fully repay principal to the noteholders. We applied various cash flow stresses using our standard default patterns and timings for each rating category assumed for each class of notes. We used the reported weighted- average spread of 1.42%, and the weighted-average recovery rates calculated in accordance with our 2012 criteria for collateralized debt obligations (CDOs) of pooled structured finance assets. The weighted-average spread (WAS) is also lower than at our previous review (1.42% now compared with 1.56% in August 2014). Over the same period, the weighted average recovery rates (WARR) at each rating levels were also 2%-3% lower at each rating category. The WAS and WARR are one of the key components that determine the required credit enhancement at each rating level in our cash flow analysis," S&P said. S&P's analysis indicates that the available credit enhancement for the class A1-N notes in this transaction is commensurate with a higher rating than that currently assigned. S&P has therefore raised to 'A- (sf)' from 'BBB+ (sf)' its rating on the class A1-N notes. S&P's credit and cash flow analysis indicates that the available credit enhancement for the class A2, B, and C notes is commensurate with their currently assigned ratings. S&P has therefore affirmed its ratings on these classes of notes. The application of the largest obligor default or largest industry test did not constrain S&P's ratings on any of the classes of notes. Cavendish Square Funding is a cash flow mezzanine structured finance CDO of a portfolio that comprises predominantly mortgage- backed securities. The transaction closed in February 2006 and AE Global Investment Solutions Ltd. manages it. RATINGS LIST Class Rating To From Cavendish Square Funding PLC EUR297.45 Million Secured Floating-Rate Notes Revolving Credit Facility Secured Fixed-Rate Notes And Subordinated Notes Rating Raised A1-N A- (sf) BBB+ (sf) Ratings Affirmed A2 BB+ (sf) B BB+ (sf) C BB- (sf) DECO 10: Fitch Lowers Rating on Class D Notes to 'Dsf' ------------------------------------------------------ Fitch Ratings has taken multiple rating actions on DECO 10 - Pan Europe 4 p.l.c.'s (DECO 10) as: EUR14.3 mil. class A2 (XS0276271375): 'BB+sf' placed on Rating Watch Positive (RWP) EUR31.9 mil. class B (XS0276272001): 'B+sf'' placed on RWP EUR31.9 mil. class C (XS0276273074) affirmed at 'CCsf'; Recovery Estimate (RE) 65% EUR18.9 mil. class D (XS0276273660) downgraded to 'Dsf' from 'Csf'; RE 0% DECO 10 closed in December 2006 and was originally the securitization of 14 commercial real estate loans, backed by collateral located in Germany, Switzerland and the Netherlands. Twelve loans were solely originated by Deutsche Bank (DB, A-/Stable) whereas the other two were syndications with Citibank, N.A. and Landesbank Hessen-Thueringen Girozentrale (both A+/Stable). To date, four loans remain. KEY RATING DRIVERS The RWP reflects the possibility of a lease extension with sole tenant Nike for the campus property securing the EUR42.2 mil. Rubicon Nike loan. This, together with the repayment of the EUR9 mil. ECP MF Portfolio loan, would materially deleverage the senior tranches. Fitch aims to resolve the RWP after the October interest payment date, assuming progress has been made. The class C notes have been affirmed as default remains probable. Finally, the downgrade of the class D notes reflects a write-down of principal. Since the last rating action in August 2015, three loan workouts have been completed while a fourth loan remains in its final loss determination. Two loans exceeded expectations by either repaying in full (EDEKA Retail) or achieving more recoveries than expected by Fitch (Lubeck, with further late recoveries possible if escrowed amounts are released after final wind-up costs). The other two (Toom DYI and DFK Portfolio) suffered losses broadly in line with Fitch's expectations. Significant progress was also made in the workout of the defaulted Treveria II loan of which 50% is securitized in DECO 10. A bulk sale of 19 assets was made to a single buyer (with staggered payments, the last of which (EUR18.9 mil.) is due by April 2017). While the portfolio sale achieved approximately 15% lower recoveries than Fitch expected, this is mitigated by a reduction in execution risk in light of time constraints. Both the EUR42.2 mil. Rubicon Nike and EUR9 mil. ECP MF loans have been extended until August and October 2016, respectively, to allow for orderly refinancing of the loans or the sale of the collateral. The Rubicon Nike borrower has obtained a term sheet from a financial institution -- a condition for the short-term extension -- while a signed letter of intent from Nike is reportedly still being pursued. It is probable that a lease renewal is required for a full repayment of the Rubicon Nike loan. Fitch expects the ECP MF loan to repay in full, given its solid performance and small size. RATING SENSITIVITIES Fitch expects to resolve the RWP after the October 2016 interest payment date. A material lease extension by Nike or repayment of ECP MF may result in an upgrade of the class A2 and B notes, although not above the 'Asf' category given asset quality risks for Treveria II and the approach of bond maturity in 2019. HARVEST CLO VII: S&P Affirms BB Rating on Class E Notes ------------------------------------------------------- S&P Global Ratings affirmed its credit ratings on Harvest CLO VII Ltd.'s class A, B, C, D, and E notes. The affirmations follow S&P's assessment of the transaction's performance using data from the May 31, 2016, trustee report and the application of its relevant criteria. "We subjected the capital structure to a cash flow analysis to determine the break-even default rate (BDR) for each rated class at each rating level. The BDR represents our estimate of the maximum level of gross defaults, based on our stress assumptions, that a tranche can withstand and still fully repay the noteholders. In our analysis, we used the portfolio balance that we consider to be performing, the current spreads as reported by the trustee report, and the recovery rates calculated in line with our corporate collateralized debt obligation (CDO) criteria. We applied various cash flow stresses, using our standard default patterns, in conjunction with different interest rate stress scenarios. We used the reported portfolio balance that we considered to be performing, the principal cash balance, the weighted-average spread, and the weighted-average recovery rates that we considered to be appropriate," S&P said. Since S&P's Jan. 17, 2014 review, following the transaction's effective date, the notes have remained fully outstanding as the transaction remains in its reinvestment period and the collateral manager reinvests cash funds received. The issuer's par balance is EUR302.2 million, indicating EUR2.2 million of additional collateral that has been built above the target par amount of EUR300 million. As a result, the available credit enhancement for the rated notes has increased marginally since closing. The asset portfolio remains well diversified, with 119 distinct obligors spread over 25 distinct industries and 20 distinct countries. Over the same period, the weighted-average spread has increased marginally to 4.83% from 4.50%, and remains well above the covenant of 4.35%. The portfolio's weighted-average life has decreased as the transaction matures, falling to 4.8 years from 6.4 years. As a result of the increased credit enhancement, the overcollateralization (OC) test ratios have also improved with the junior OC test, relating to the class E notes, increasing to 112.9% from 112.4%, well above the trigger level of 107.1%. S&P incorporated various cash flow stress scenarios, using various default patterns, levels, and timings for each liability rating category, in conjunction with different interest rate stress scenarios. To help assess the collateral pool's credit risk, S&P used CDO Evaluator 6.3 to generate scenario default rates (SDRs; the modeled level of gross defaults that CDO Evaluator estimates for every CDO liability rating) at each rating level. S&P then compared these SDRs with their respective BDRs. While the transaction remains in its reinvestment period, the collateral manager can alter the asset portfolio through sales and purchases. Negative selection in new assets is mitigated by S&P's CDO Monitor test, which ensures that any amended portfolio is of sufficient quality to maintain the ratings on the notes assigned at closing. As a result, in S&P's analysis, it recognizes that during the reinvestment period the portfolio is subject to further change, which may constrain the ratings on the notes to the original ratings assigned. Taking into account S&P's observations outlined above, it considers the available credit enhancement for all classes of notes to be commensurate with the ratings currently assigned. S&P has therefore affirmed its ratings on the class A, B, C, D, and E notes. Harvest CLO VII is a cash flow collateralized loan obligation (CLO) transaction that securitizes loans to primarily speculative-grade corporate firms. The transaction closed in September 2013, and its reinvestment period ends in October 2017. RATINGS LIST Class Rating Harvest CLO VII Ltd. EUR309.6 Million Senior Secured Floating-Rate And Subordinated Notes Ratings Affirmed A AAA (sf B AA+ (sf) C A (sf) D BBB (sf) E BB (sf) QUIRINUS PLC: Fitch Affirms 'Dsf' Rating on Class F Loan -------------------------------------------------------- Fitch Ratings has affirmed Quirinus (European Loan Conduit No. 23) Plc, as: EUR54.2 mil. Class A (XS0259561925) affirmed at 'BBsf'; Outlook revised to Stable from Negative EUR4.7 mil. Class B (XS0259562576) affirmed at 'BB-sf'; Outlook Negative EUR5.7 mil. Class C (XS0259562907) affirmed at 'Bsf'; Outlook Negative EUR7.7 mil. Class D (XS0259563202) affirmed at 'CCCsf'; Recovery Estimate (RE) revised to 50% from 60% EUR8.8 mil. Class E (XS0259563624) affirmed at 'CCsf'; RE revised to 0% from 45% EUR1.8 mil. Class F (XS0259564192 affirmed at 'Dsf'; RE revised to 0% from 50% Quirinus is a securitization of originally 10 commercial mortgage loans made by Morgan Stanley for EUR700.8 mil. Nine loans have been resolved since the deal closed in 2005, with all but two repaying in full. The Fairacre Retail Loan and the H&B3 loans incurred final losses represented by an aggregate write-down of EUR5.1 mil. on the class F notes. KEY RATING DRIVERS The affirmation reflects the broadly stable performance of the collateral securing the remaining loan (Eurocastle), despite its inability to refinance at maturity. This failure to pay switched principal pay to a fully sequential structure in time for the resolution of H&B3, which is reflected by the revision of the Outlook on the class A notes (which would otherwise have received 80% of the proceeds). This switch diverted funds that would otherwise have flowed to junior notes, and hence explains the downwards revision of the Recovery Estimates. For the class B and C notes, the Negative Outlooks reflect uncertainty associated with the resolution of Eurocastle, given the borrower did not refinance its portfolio in time for maturity. The EUR82.7 mil. loan is secured by a diverse portfolio of 41 retail warehouses throughout Germany, with several sites housing dominant grocers in remote areas. Vacancy has increased to 9.5% from 5% at the time of the last rating action, although lease renewals throughout the year led to an increase in the weighted average lease term from 3.61 to 4.43 years. All excess rental income is being reserved by the servicer (currently standing at EUR2.16 mil.), allowing the notes to benefit from the low interest rate environment. Fitch estimates the sustainable 'Bsf' LTV to be approximately 121%, although current market conditions should support higher recoveries. The defaulted H&B3 loan was resolved in December 2015 following a sale of the five retail warehouses. This achieved a gross sales price of EUR17.8 mil., which with reserved rental income included, distributed EUR18.34 mil. to the class A notes on the August 2016 IPD. The residual of the EUR23.09 mil. loan was written off from the defaulted class F notes, leaving only EUR1.8 mil. outstanding. RATING SENSITIVITIES A quick resolution could see Eurocastle benefiting from the current positive sentiment for German retail warehouse portfolios, as illustrated by prime yields in the sector being close to all-time lows. A protracted workout could run against time constraints presented by bond maturity in 2019, and lead to downgrades. Fitch estimates 'Bsf' sustainable value to be approximately EUR68.5 mil. =================== L U X E M B O U R G =================== ELEX ALPHA: S&P Affirms CCC+ Rating on Class E Notes ---------------------------------------------------- S&P Global Ratings raised its credit ratings on eleX Alpha S.A.'s class B, C, and D notes. At the same time, S&P has affirmed its ratings on the class A-1 and E notes. The rating actions follow S&P's assessment of the transaction's performance, using data from the June 2016 trustee report, and S&P's credit and cash flow analysis. S&P has taken into account recent developments in the transaction and has applied its current counterparty criteria. Since S&P's March 11, 2015 review, it has observed an increase in the available credit enhancement for all classes of notes, except for the class E notes. The transaction's reinvestment period ended in March 2013 and the class A-1 notes remain GBP4.43 million outstanding. Since S&P's previous review, the weighted-average spread has decreased to 3.66% from 3.98% of the portfolio, and the portfolio's credit quality has improved overall. The balance of assets that S&P considers as defaulted (rated 'CC', 'C','SD' [selective default], or 'D') has also decreased to EUR1.4 million from EUR6.4 million as of S&P's previous review. S&P has subjected the capital structure to its cash flow analysis, based on the methodology and assumptions outlined in S&P's collateralized debt obligation (CDO) criteria, to determine the break-even default rate for each rated class of notes. S&P used the reported portfolio balance that it considered to be performing, the principal cash balance, the current weighted- average spread, and the weighted-average recovery rates that S&P considered to be appropriate. S&P incorporated various cash flow stress scenarios using various default patterns, levels, and timings for each liability rating category, in conjunction with different interest rate stress scenarios. Under S&P's current counterparty criteria, its long-term issuer credit rating on Barclays Bank PLC (A-/Negative/A-2) as the swap counterparty and option provider, constrains S&P's ratings on the class A-1, B, and C notes at 'A (sf)'. S&P has therefore stressed non-euro-denominated assets in 'A+' scenarios and above, in accordance with S&P's current counterparty criteria. S&P's credit and cash flow analysis indicates that the available credit enhancement for the class B, C, and D notes is now commensurate with higher ratings than those currently assigned. S&P has therefore raised its ratings on these classes of notes. S&P's analysis also indicates that the available credit enhancement for the class A-1 and E notes is commensurate with S&P's currently assigned ratings. S&P has therefore affirmed its ratings on these classes of notes. S&P's rating on the class E notes is also constrained, at the current rating level, by the application of the largest obligor default test. The largest obligor default test is a supplemental stress test that S&P introduced in its 2009 criteria update for corporate CDOs. eleX Alpha is a cash flow collateralized loan obligation (CLO) transaction that securitizes loans to primarily speculative-grade corporate firms. It closed in December 2006 and is managed by DWS Finanz-Service GmbH. RATINGS LIST eleX Alpha S.A. EUR300 mil senior secured floating-rate notes Rating Class Identifier To From A-1 28626NAA2 AAA (sf) AAA (sf) B 28626NAC8 AAA (sf) AA+ (sf) C 28626NAD6 AAA (sf) AA (sf) D 28626NAE4 BBB+ (sf) BBB- (sf) E 28626NAF1 CCC+ (sf) CCC+ (sf) ===================== N E T H E R L A N D S ===================== CAIRN CLO II: S&P Raises Rating on Class E Notes to B+ ------------------------------------------------------ S&P Global Ratings raised its credit ratings on Cairn CLO II B.V.'s class B, C, D, and E notes. At the same time, S&P has affirmed its ratings on the class A-1S and A-1R notes. The rating actions follow S&P's assessment of the transaction's performance using data from the June 2016 trustee report. S&P subjected the capital structure to a cash flow analysis to determine the break-even default rate for each rated class of notes at each rating level. In S&P's analysis, it used the reported portfolio balance that it considers to be performing, the current weighted-average spread, and the weighted-average recovery rates that S&P considered appropriate. S&P incorporated various cash flow stress scenarios using alternative default patterns, in conjunction with different interest and currency stress scenarios. From S&P's analysis, it has observed that the asset-liability mismatch for non-euro-denominated assets has decreased. S&P has also observed that overcollateralization test results, the credit quality of the pool, and credit enhancement have improved since S&P's previous review on April 29, 2015. In addition, S&P has noted a fall in the weighted-average spread to 408 basis points (bps) from 415 bps over the same period. This transaction features multicurrency revolving liabilities intended to match the non-euro-denominated assets and multicurrency revolving loans purchased by the issuer. Currency mismatches are hedged with Bermuda-style currency call options. S&P noted that the principal was allocated and paid to the class B noteholders before paying the class A-1 notes, which are the senior-most classes of notes. S&P has received confirmation from the manager that the application of principal proceeds going forward will continue as it is described in the transaction documents (the class A-1 notes will pay all available principal proceeds until fully paid down to zero before any further principal is distributed to the class B notes). In S&P's opinion, the available credit enhancement for the class A-1S and A-1R notes is commensurate with the currently assigned ratings, taking into account the results of our credit and cash flow analysis and the application of S&P's current counterparty criteria. S&P has therefore affirmed its ratings on the class A- 1S and A-1R notes. S&P's credit and cash flow analysis of the class B, C, D, and E notes indicates that the available credit enhancement is commensurate with higher ratings than those currently assigned. S&P has therefore raised its ratings on these classes of notes. Cairn CLO II is a cash flow collateralized loan obligation (CLO) transaction that securitizes loans to primarily European speculative-grade corporate firms. The transaction closed in August 2007 and is managed by Cairn Capital Ltd. RATINGS LIST Cairn CLO II B.V. EUR380 mil, GBP13.473 mil secured floating-rate notes Rating Class Identifier To From A-1S 12776QAA7 AAA (sf) AAA (sf) A-1R AAA (sf) AAA (sf) B XS0313397746 AAA (sf) AA+ (sf) C XS0313398553 AAA (sf) A+ (sf) D XS0313399288 A+ (sf) BBB- (sf) E XS0313400045 B+ (sf) B- (sf) HIGHLANDER EURO: S&P Raises Rating on Class D Notes to B- --------------------------------------------------------- S&P Global Ratings Services took various credit rating actions on Highlander Euro CDO B.V.'s (primary issuer; issued the class A-1, A-2, B, C, and D notes) notes and Highlander Euro CDO (Cayman) Ltd.'s (secondary issuer; issued the class E notes) notes (collectively, Highlander Euro CDO). Specifically, S&P has: -- Raised its ratings on the class B, C, and D notes; and -- Affirmed its rating on the class E notes. The rating actions follow S&P's credit and cash flow analysis of the transaction using data from the June 20, 2016 trustee report and the application of S&P's relevant criteria. "We conducted our cash flow analysis to determine the break-even default rate (BDR) for each rated class of notes. The BDR represents our estimate of the maximum level of gross defaults, based on our stress assumptions, that a tranche can withstand and still pay interest and fully repay principal to the noteholders. We used the portfolio balance that we consider to be performing, the reported weighted-average spread/coupon, and the weighted- average recovery rates that we considered to be appropriate. We incorporated various cash flow stress scenarios using our standard default patterns, levels, and timings for each rating category assumed for each class of notes, combined with different interest stress scenarios as outlined in our corporate collateralized debt obligation (CDO) criteria," S&P said. The class A-1 and A-2 notes have fully repaid since S&P's previous review. This has increased the available credit enhancement for all classes of notes. The proportion of assets rated 'CCC+', 'CCC', or 'CCC-' as a percentage of the performing portfolio has reduced to 1.6% from 2.2% since S&P's previous review. S&P's cash flow analysis results indicate that the available credit enhancement for the class B, C, and D notes is commensurate with higher ratings than currently assigned. S&P has therefore raised to 'AAA (sf)' from 'AA+ (sf)' its rating on the class B notes, to 'A+ (sf)' from 'BB+ (sf)' its rating on the class C notes, and to 'B- (sf)' from 'CCC- (sf)' S&P's rating on the class D notes. The largest obligor test constrains S&P's rating on the class C and D notes. The largest obligor test measures the risk of several of the largest obligors within the portfolio defaulting simultaneously. As a result of structural deleveraging, the underlying portfolio is more concentrated now with 22 performing obligors, compared with 35 at our previous review. The largest performing obligor exposure is at 12.0%, while the average performing obligor exposure is 4.6%. S&P has affirmed its 'CCC- (sf)' rating on the class E notes as the notes continue to be undercollateralized. The class E overcollateralization test is failing and as a result, the interest payments on these notes are being deferred pursuant to the transaction's payment waterfall. Highlander Euro CDO is a cash flow collateralized loan obligation (CLO) transaction that securitizes loans to primarily speculative-grade corporate firms. The transaction closed in August 2006 and its reinvestment period ended in August 2012. CELF Advisors LLP is the transaction's manager. RATINGS LIST Class Rating To From Highlander Euro CDO B.V. EUR500 Million Secured Floating-Rate And Subordinated Notes Ratings Raised B AAA (sf) AA+ (sf) C A+ (sf) BB+ (sf) D B- (sf) CCC- (sf) Highlander Euro CDO (Cayman) Ltd. EUR38.25 Million Secured Floating-Rate Notes Rating Affirmed E CCC- (sf) JUBILEE CDO V: S&P Affirms BB+ Ratings on 2 Note Classes -------------------------------------------------------- S&P Global Ratings raised its credit rating on Jubilee CDO V B.V.'s class B notes. At the same time, S&P has affirmed its ratings on the class A-1B, A-2, C, D-1, and D-2 notes. The rating actions follow S&P's review of the transaction's performance based on the July 2016 investor report. S&P performed a credit and cash flow analysis and assessed the support that each participant provides to the transaction by applying S&P's current counterparty criteria. In performing S&P's analysis, it excluded one position, an Obligations Remboursables en Actions (ORA) bond, based on S&P's analysis of its terms and conditions. Exclusion of this position did not materially affect the results of S&P's analysis. In addition, S&P has classified as defaulted obligations to Truvo N.V. and its operating subsidiary Talon PIKco N.V., following the withdrawal of S&P's ratings on this obligor. S&P's review of the transaction highlighted that, although the portfolio has amortized, the available credit enhancement for the class B, C, D-1, and D-2 notes has fallen since S&P's previous review. S&P believes the primary driver for this fall is the exclusion of the ORA bond and treatment of Truvo and Talon PIKco, as noted above. S&P subjected the capital structure to a cash flow analysis to determine the break-even default rate for each rated class of notes at each rating level. In S&P's analysis, it used the reported portfolio balance that it considered to be performing (EUR174 million), the weighted-average spread, and the weighted- average recovery rates for the performing portfolio. S&P applied various cash flow stress scenarios, using its standard default patterns in conjunction with different interest stress scenarios for each liability rating category. Non-euro-denominated assets comprise 10% of the performing collateral balance, which are hedged by a cross-currency swap agreement. In S&P's opinion, the documentation for the cross- currency swap agreement does not fully reflect S&P's current counterparty criteria. In S&P's cash flow analysis, for ratings above the issuer credit rating plus one notch on the swap counterparty, it considered scenarios where the counterparty does not perform, and where the transaction is therefore exposed to changes in currency rates. The results of S&P's credit and cash flow analysis indicate that the available credit enhancement for the class B notes is commensurate with a higher rating than currently assigned. S&P has therefore raised to 'AAA (sf)' from 'AA+ (sf)' its rating on this class of notes. For all other classes of notes, the results of S&P's credit and cash flow analysis indicate that the available credit enhancement is commensurate with the currently assigned ratings. S&P has therefore affirmed its ratings on the class A-1B, A-2, C, D-1, and D-2 notes. Jubilee CDO V is a cash flow CLO transaction that securitizes loans granted to primarily European speculative-grade corporate firms. Alcentra Ltd. manages the transaction. The transaction closed in June 2005 and entered its amortization period in August 2011. RATINGS LIST Class Rating To From Jubilee CDO V B.V. EUR555 Million Secured Floating- And Fixed-Rate Notes Rating Raised B AAA (sf) AA+ (sf) Ratings Affirmed A-1B AAA (sf) A-2 AAA (sf) C BBB+ (sf) D-1 BB+ (sf) D-2 BB+ (sf) ============= R O M A N I A ============= OLTCHIM SA: Creditors Agree to Extend Reorganization Period ----------------------------------------------------------- SeeNews reports that the creditors of Romanian insolvent chemicals producer Oltchim agreed on Aug. 29 to extend the company's reorganization period by one year. According to SeeNews, Oltchim said in a statement filed with the Bucharest Stock Exchange, BVB, the request to extend the reorganization period was made by the company's judicial administrators consortium, Rominsolv and BDO Business Restructuring. Oltchim on Aug. 24 launched an asset sale auction process for all or part of its assets grouped into nine bundles, and that expects to select investors by the end of 2016, SeeNews relates. The deadline for the expression of interest is Sept. 30, SeeNews discloses. Oltchim is under insolvency procedure since 2013, SeeNews notes. =========== R U S S I A =========== ER-TELECOM: S&P Revises Outlook to Negative & Affirms 'B+' CCR -------------------------------------------------------------- S&P Global Ratings said that it had revised its outlook on ER- Telecom to negative from stable and affirmed the 'B+' long-term corporate credit rating. At the same time, S&P also affirmed the 'ruA' Russia national scale rating on ER-Telecom. The outlook revision reflects S&P's view that ER-Telecom will continue to invest in growth, including through mergers and acquisitions (M&A), which will result in negative free operating cash flows. S&P now expects that ER-Telecom's adjusted leverage will exceed 3.0x (compared with 2.1x in 2015) and remain close to or below 3.5x in 2016-2017. That said, S&P believes that ER-Telecom has very limited headroom to further increase its leverage through debt-financed acquisitions or paying out significant dividends because of the covenant on ER-Telecom's Russian ruble (RUB) 27 billion (about US$417 million) facility from VTB Bank. The facility remains the key source of ER-Telecom's financing for further growth. That said, S&P also factors in that in July 2016 ER-Telecom successfully placed a RUB3 billion three-year domestic bond. S&P also takes into account that availability on the remaining balance under the RUB27 billion facility from VTB Bank has been very recently extended until year-end 2016. This mitigates the short-term liquidity pressure resulting from ER-Telecom's high expansionary spending. S&P's rating on ER-Telecom factors in its position as Russia's second-largest broadband operator after the incumbent Rostelecom, offering internet, Pay-TV, and fixed telephony services under the DOM.RU brand. This is balanced by exposure to the competitive and saturated Russian broadband market. In previous years, ER-Telecom demonstrated very robust growth, both organic and via acquisitions, with a strong 15.8% revenue increase in 2014, slowing to 0.5% in 2015, bringing revenues to RUB22.2 billion. S&P's assessment of ER-Telecom's business risk profile is supported by availability of its own backbone fiber network and by its presence in 56 Russian cities with a total population exceeding 30 million people and 12 million households. According to the management, the company has a 26% share of the local internet access market and 32% share of the local cable TV market by revenues. S&P also takes into account the company's recent entrance into the Moscow business-to-business (B2B) market and strengthening of its footprint in other Russian cities after the equity swap-based acquisition of OOO Prestige-Internet (operating under the Enforta brand), which was completed in late May 2016. Enforta is a Russian cable operator with 88 offices in 63 Russian regions and with a platform covering 566 Russian towns. Enforta's Russian market share is estimated at 3%, and it has a strong value proposition in B2B and business-to-government segments. These factors are balanced by the high country risks of operating in Russia, where 100% of ER-Telecom's assets are concentrated. S&P notes that Russia is experiencing a general economic slowdown, with real GDP growth projected at negative 1.3% in 2016, returning to 1% growth in 2017. S&P also factors in the saturated and very competitive broadband market, where the incumbent Rostelecom has a dominant 38% market share in business- to-customers and 34% in B2B. In S&P's view, fierce competition will continue to put pressure on ER-Telecom's margins. ER-Telecom's adjusted EBITDA margin fell to around 30% in the first half of 2016 from 34.6% in 2015 and 40.6% in 2014. S&P expects that it will be below 30% in full-year 2016, as a result of price pressure and the acquisition of Enforta, whose margins have historically been lower than ER- Telecom's, at around 24%. S&P expects that margins will continue to be pressured until 2017, given the company's acquisitive growth trend, which S&P considers would dilute margins. S&P expects margins to gradually rebound in 2018-2019 on the back of synergies management expects to materialize after integration of the acquisitions, including overhead savings and lower network costs, as Enforta will be using ER-Telecom's fiber infrastructure where technically feasible. S&P's negative outlook on ER-Telecom reflects S&P's view that its leverage will exceed 3.0x in 2016-2017. S&P would downgrade ER-Telecom if its adjusted leverage exceeds 3.5x, driven in particular by M&A activity or dividend payout. S&P will also consider a downgrade if ER-Telecom's liquidity deteriorates. S&P may revise the outlook to stable and affirm the rating if ER- Telecom sustains its adjusted leverage ratio below 3.0x, combined with a solid liquidity position. =========== S E R B I A =========== STARI JASEN: Put Up for Sale, September 30 Public Bidding Set ------------------------------------------------------------- SeeNews reports that Serbia's bankruptcy supervision agency said bankrupt furniture maker Stari Jasen will be put up for sale at a starting price of RSD30.9 million (US$280,850/EUR251,400). The agency said the assets on sale include production facilities, offices and a warehouse, SeeNews relates. The public bidding will be held on Sept. 30, at the Commercial Court of Kraljevo, SeeNews discloses. According to SeeNews, to participate in the tender, potential buyers should pay a deposit equivalent to half the starting price, or some RSD12.4 million. Stari Jasen was one of the most successful furniture factories in former Yugoslavia but after two failed privatization attempts in 2002 and 2005 it collapsed into insolvency, SeeNews relays. Stari Jasen is based in the southern city of Kraljevo. =========== T U R K E Y =========== TURKIYE IS BANKASI: Fitch Affirms BB+ Subordinated Debt Rating -------------------------------------------------------------- Fitch Ratings has revised the Outlooks to Negative from Stable on 18 Turkish banks, while affirming their Issuer Default Ratings (IDRs). In addition, the ratings of those banks' financial subsidiaries, which are driven by institutional support, are affirmed and their Outlooks are revised to Negative. KEY RATING DRIVERS AND SENSITIVITIES - IDRS, SUPPORT RATINGS, SUPPORT RATINGS FLOORS (SRF), DEBT RATINGS The revision of the Outlooks on the Long-Term IDRs of T.C. Ziraat Bankasi A.S. (Ziraat), Turkiye Halk Bankasi A.S. (Halk), Turkiye Vakiflar Bankasi T.A.O. (Vakif), Istanbul Takas ve Saklama Bankasi A.S. - (Takasbank), Turkiye Sinai Kalkinma Bankasi A.S.(TSKB), Turkiye Kalkinma Bankasi A.S. (TKB) and Turkiye Ihracat Kredi Bankasi AS (Turk Eximbank), reflects the increased likelihood of a deterioration in the government's ability to provide support given the Negative Outlook on the sovereign rating. They also reflect the potential for those banks whose Viability Ratings (VR) are at the same level as the sovereign, to be downgraded due to the effects of a worsening operating environment. In the case of Takasbank, whose IDR is driven by its standalone creditworthiness, the Negative Outlook reflects its exposure purely to Turkish bank counterparty risk in the context of the deteriorating operating environment. Consequently, a downgrade of the Turkish sovereign would likely lead to a downgrade of the Long-Term IDRs of all seven entities. In the event that their Long-Term IDRs are downgraded Fitch would also expect to downgrade the banks' Short-Term IDRs. The IDRs of the seven entities are underpinned by their 'BBB-' Support Rating Floors, reflecting Fitch's view of a high probability of support from the Turkish authorities in case of need. The SRFs of Ziraat, Halk and Vakif reflect their (i) state ownership (ii) policy roles (Ziraat, Halk) (iii) systemic importance, and (iv) significant state-related deposits. Takasbank's SRF refects the exceptionally high systemic importance of the bank given its role as the country's clearing centre and, as a result of its interconnectedness with the financial sector, and the potential contagion risk in the event of a default. The SRFs of TSKB, TKB and Turk Eximbank reflect (i) the banks' policy roles (ii) majority state ownership (TKB and Turk Eximbank) and (iii) government support of the banks' funding. Fitch has not assigned VRs to these banks as a result of their policy roles and funding profiles. Akbank T.A.S.'s (Akbank) and Turkiye Is Bankasi A.S.'s (Isbank) IDRs are driven by their VRs. Their lower SRFs of 'BB-' reflect only a moderate probability of support from the Turkish state on account of their ownership structures while also taking into account the banks' systemic importance and market shares. The revised Outlooks on the 'BBB' support-driven Long-Term IDRs of the foreign-owned commercial banks, Turkiye Garanti Bankasi A.S. (Garanti), ING Bank A.S. (INGBT), Turk Ekonomi Bankasi A.S. (TEB), Finansbank A.S. (Finansbank), ICBC Turkey Bank A.S. (ICBC Turkey), Burgan Bank A.S. (Burgan), Alternatifbank A.S. (ABank), and the foreign-owned participation banks Kuveyt Turk Katilim Bankasi A.S (Kuveyt Turk) and Turkiye Finans Katilim Bankasi AS (Turkiye Finans), all of which are at the level of Turkey's Country Ceiling, reflect the increased likelihood of a downgrade of the Country Ceiling following the change in the sovereign's Outlook. Turkey's Country Ceiling reflects transfer and convertibility risks and limits the extent to which support from foreign shareholders can be factored into the banks' Long-Term IDRs. At the same time their Local Currency IDRs, whose Outlooks have also been revised to Negative, continue to take into account Turkish country risks. The IDRs, Support Ratings and debt ratings of all nine foreign- owned banks reflect Fitch's view that their parents continue to have a strong propensity to provide support, notwithstanding the change in sovereign outlook, given the subsidiaries' ownership structures, integration and, in some cases, common branding. KEY RATING DRIVERS AND SENSITIVITIES - SUBSIDIARIES OF FOREIGN OWNED BANKS The IDRs of the Garanti Faktoring A.S., Garanti Finansal Kiralama A.S. (Garanti Leasing), Finans Finansal Kiralama A.S. (Finans Leasing), Alternatif Finansal Kiralama AS (ALease) are equalised with those of their respective parents, reflecting their strategic importance to and integration with their respective groups. Consequently, the revision of their Outlooks to Negative from Stable mirrors the rating action on their parents and indicates a possible weakening of their parents' ability to support them. The ratings of these entities are sensitive to changes in the ratings of their respective parent banks. KEY RATING DRIVERS AND SENSITIVITIES - VRS The 'bbb-' VRs of Ziraat, Halk, Vakif, Garanti, TEB and Finansbank are unaffected as a result of the change in sovereign outlook, while the VRs of Takasbank, Akbank and Isbank, which drive the banks' IDRs, are affirmed. The operating environment and Turkish sovereign rating remain key sensitivities for all banks' VRs given their exposure to the domestic economy and exposure to investor sentiment as evidenced by the banks' high level of foreign currency wholesale funding. Consequently, a sovereign downgrade would likely have a negative impact on the banks' standalone credit profiles and lead to a downgrade of their VRs. Stabilization of the sovereign's credit profile and the country's economic prospects would reduce downward pressure on the banks' VRs. The VRs of INGBT, ICBC Turkey, Burgan, ABank, Kuveyt Turk and Turkiye Finans are also unaffected by the sovereign outlook action. A weaker operating environment may have less direct or immediate impact on those banks' VRs as they are currently below the level of the sovereign rating and therefore have a somewhat greater tolerance to modest operating environment deterioration. KEY RATING DRIVERS AND SENSITIVITIES - SUBSIDIARIES OF DOMESTICALLY PRIVATELY OWNED BANKS The IDRs of the subsidiaries of Akbank and Isbank, AK Finansal Kiralama A.S. (Aklease), Ak Yatirim Menkul Degerler AS (Ak Investment), Akbank AG, Is Faktoring A.S., Is Finansal Kiralama A.S. (Is Leasing) and Is Yatirim Menkul Degerler A.S. (Is Investment) are equalized with those of their respective parents, reflecting their strategic importance to and integration with their respective groups. Consequently, the revision of their Outlooks to Negative from Stable mirrors the rating action on their parents and indicates a possible weakening of their parents' ability to support them. The ratings of these entities are sensitive to changes in the ratings of their respective parent banks. KEY RATING DRIVERS AND SENSITIVITIES - SUBORDINATED DEBT RATINGS Vakif's and Isbank's subordinated debt ratings are notched once off their 'bbb-' VRs, reflecting Fitch's view that government support will not necessarily be extended to subordinated creditors. As such, the ratings are sensitive to changes in the bank's VRs. ABank's and Kuveyt Turk's subordinated debt ratings are notched down from their Long-Term Foreign Currency IDRs and as such are sensitive to changes in the banks' support-driven ratings, reflecting Fitch's view that support from their respective institutional owners would extend to subordinated creditors. The ratings of the notes of all four banks are also sensitive to a change in notching due to a change in Fitch's assessment of the probability of the notes' non-performance risk relative to the risk captured in their respective anchor ratings, or in its assessment of loss severity in case of non-performance. KEY RATING DRIVERS AND SENSITIVITIES - NATIONAL RATINGS The affirmation of all banks' and subsidiaries National Ratings with Stable Outlooks reflects Fitch's view that the creditworthiness of the banks relative to each other and to other Turkish banks has not changed significantly as a result of the sovereign Outlook change. The rating actions are: T.C. Ziraat Bankasi A.S.: Long-Term Foreign and Local Currency IDRs affirmed at 'BBB-'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs affirmed at 'F3' Viability Rating unaffected at 'bbb-' Support Rating affirmed at '2' Support Rating Floor affirmed at 'BBB-' Senior unsecured long term debt affirmed at 'BBB-' Senior unsecured short-term debt affirmed at 'F3' National Long-Term Rating affirmed at 'AAA(tur)'; Outlook Stable Turkiye Halk Bankasi A.S.: Long-Term Foreign and Local Currency IDRs affirmed at 'BBB-'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs affirmed at 'F3' Viability Rating unaffected at 'bbb-' Support Rating affirmed at '2' Support Rating Floor affirmed at 'BBB-' Senior unsecured long term debt affirmed at 'BBB-' National Long-Term rating affirmed at 'AAA(tur)'; Outlook Stable Turkiye Vakiflar Bankasi T.A.O.: Long-Term Foreign and Local Currency IDRs affirmed at 'BBB-'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs affirmed at 'F3' Viability Rating unaffected at 'bbb-' Support Rating affirmed at '2' Support Rating Floor affirmed at 'BBB-' Senior unsecured long term debt affirmed at 'BBB-' Senior unsecured short-term debt affirmed at 'F3' Subordinated debt rating: affirmed at 'BB+' National Long-Term Rating affirmed at 'AAA(tur)'; Outlook Stable Istanbul Takas ve Saklama Bankasi A.S. - Takasbank: Long-Term Foreign and Local Currency IDRs affirmed at 'BBB-'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs affirmed at 'F3' Viability Rating affirmed at 'bbb-' Support Rating affirmed at '2' Support Rating Floor affirmed at 'BBB-' National Long-Term rating affirmed at 'AAA(tur)'; Outlook Stable TKB: Long-Term Foreign and Local Currency IDRs: affirmed at 'BBB-'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs: affirmed at 'F3' Support Rating: affirmed at '2' Support Rating Floor: affirmed at 'BBB-' National Long-Term Rating: affirmed at 'AAA(tur)'; Stable Outlook TSKB: Long-Term Foreign and Local Currency IDRs: affirmed at 'BBB-'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs: affirmed at 'F3' Support Rating: affirmed at '2' Support Rating Floors: affirmed at 'BBB-' National Long-Term Rating affirmed at 'AAA(tur)'; Stable Outlook Senior unsecured long term debt affirmed at 'BBB-': Senior unsecured long term debt programme affirmed at 'BBB-' Senior unsecured short term debt programme affirmed at 'F3' Turk Eximbank: Long-Term Foreign and Local Currency IDRs: affirmed at 'BBB-'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs: affirmed at 'F3' Support Rating: affirmed at '2' Support Rating Floor: affirmed at 'BBB-' National Long-Term Rating: affirmed at 'AAA(tur)'; Stable Outlook Senior unsecured long term debt affirmed at 'BBB-' Senior unsecured debt programme affirmed at 'BBB-' Turk Ekonomi Bankasi A.S., Finansbank A.S.: Long-Term Foreign and Local Currency IDRs affirmed at 'BBB'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs affirmed at 'F2' Viability Rating unaffected at 'bbb-' Support Rating affirmed at '2' National Long-Term Rating affirmed at 'AAA(tur)'; Stable Outlook Senior unsecured long term debt affirmed at 'BBB' Senior unsecured short term debt affirmed at 'F2' ING Bank A.S.: Long-Term Foreign and Local Currency IDRs affirmed at 'BBB'; Outlook revised to Negative from Stable Short-term Foreign and Local Currency IDRs affirmed at 'F2' Viability Rating unaffected at 'bb+' Support Rating affirmed at '2' National Long-Term Rating affirmed at 'AAA(tur)'; Stable Outlook Kuveyt Turk Katilim Bankasi A.S,: Long-Term Foreign and Local Currency IDRs affirmed at 'BBB'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs affirmed at 'F2' Viability Rating unaffected at 'bb-' Support Rating affirmed at '2' National Long-Term Rating affirmed at 'AAA(tur)'; Stable Outlook Senior unsecured debt (sukuk) issued by Kuvey Turk's KT Sukuk Varlik Kiralama A.S., KT Kira Sertifikalari Varlik Kiralama A.S. affirmed at 'BBB' Subordinated debt issued by KT Sukuk Company Limited affirmed at 'BBB-' Turkiye Finans Katilim Bankasi A.S.: Long-Term Foreign and Local Currency IDRs affirmed at 'BBB'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs affirmed at 'F2' Viability Rating unaffected at 'bb-' Support Rating affirmed at '2' National Long-Term Rating affirmed at 'AAA(tur)'; Stable Outlook Senior unsecured debt issues (sukuk) issued by TF Varlik Kiralama A.S. affirmed at 'BBB' ICBC Turkey Bank A.S, Burgan Bank A.S.: Long-Term Foreign and Local Currency IDRs affirmed at 'BBB'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs affirmed at 'F2' Viability Rating unaffected at 'b+' Support Rating affirmed at '2' National Long-Term Rating affirmed at 'AAA(tur)' Stable Outlook Alternatifbank A.S.: Long-Term Foreign and Local Currency IDRs affirmed at 'BBB'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs affirmed at 'F2' Viability Rating unaffected at 'b+' Support Rating affirmed at '2' National Long-Term Rating affirmed at 'AAA(tur)' Stable Outlook Guaranteed debt affirmed at 'A+' Subordinated debt affirmed at 'BBB-' Alternatif Finansal Kiralama A.S. Long-Term Foreign and Local Currency IDRs affirmed at 'BBB'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs affirmed at 'F2' Support Rating affirmed at '2' National Long-Term Rating affirmed at 'AAA(tur)'; Stable Outlook Finans Finansal Kiralama A.S. Long-Term Foreign and Local Currency IDRs: affirmed at 'BBB'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs affirmed at 'F2' Support Rating affirmed at '2' National Long-Term Rating affirmed at 'AAA(tur)'; Stable Outlook Akbank T.A.S. Long-Term Foreign and Local Currency IDRs: affirmed at 'BBB-'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs: affirmed at 'F3' Viability Rating affirmed at 'bbb-' Support Rating affirmed at '3' Support Rating Floor affirmed at 'BB-' National Long-Term Rating affirmed at 'AA+(tur)'; Outlook Stable Senior unsecured long term debt affirmed at 'BBB-' Senior unsecured short term debt affirmed at 'F3' Turkiye Is Bankasi A.S. Long-Term Foreign and Local Currency IDRs: affirmed at 'BBB-'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs: affirmed at 'F3' Viability Rating affirmed at 'bbb-' Support Rating affirmed at '3' Support Rating Floor affirmed at 'BB-' National Long-Term Rating affirmed at 'AA+(tur)'; Outlook Stable Senior unsecured long term debt affirmed at 'BBB-' Senior unsecured short term debt affirmed at 'F3' Subordinated debt affirmed at 'BB+' Turkiye Garanti Bankasi A.S. Long-Term Foreign and Local Currency IDRs affirmed at 'BBB'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs affirmed at 'F2' Viability Rating unaffected at 'bbb-' Support Rating affirmed at '2' National Long-Term Rating affirmed at 'AAA(tur)' ; Outlook Stable Senior unsecured long term debt affirmed at 'BBB' Senior unsecured short term debt affirmed at 'F2' Akbank AG Long-Term Foreign Currency IDR: affirmed at 'BBB-'; Outlook revised to Negative from Stable Short-Term Foreign Currency IDR: affirmed at 'F3' Support Rating affirmed at '2' Ak Finansal Kiralama A.S. and Ak Yatirim Menkul Degerler A.S. Long-Term Foreign and Local Currency IDRs: affirmed at 'BBB-'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs: affirmed at 'F3' Support Rating affirmed at '2' National Long-Term Rating affirmed at 'AA+(tur)'; Outlook Stable Senior unsecured debt Long-term ratings (Ak Finansal only) affirmed at 'BBB-' Senior unsecured debt Short-term ratings (Ak Finansal only) affirmed at 'F3' Is Finansal Kiralama A.S. and Is Faktoring A.S. Long-Term Foreign and Local Currency IDRs: affirmed at 'BBB-'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs: affirmed at 'F3' Support Rating affirmed at '2' National Long-Term Rating affirmed at 'AA+(tur)'; Outlook Stable Is Yatirim Menkul Degerler A.S. National Long-Term Rating affirmed at 'AA+(tur)'; Outlook Stable Garanti Faktoring A.S. and Garanti Finansal Kiralama A.S. Long-Term Foreign and Local Currency IDRs: affirmed at 'BBB'; Outlook revised to Negative from Stable Short-Term Foreign and Local Currency IDRs: affirmed at 'F2' Support Rating affirmed at '2' National Long-Term Rating affirmed at 'AAA(tur)'; Outlook Stable =========================== U N I T E D K I N G D O M =========================== BAY TV: Operations to Continue Despite Administration ----------------------------------------------------- Liam Murphy at Liverpool Echo reports that Liverpool's Bay TV Liverpool Ltd. is expected to be sold after being placed into administration. Employees at the company were sent letters from administrators, Skelmersdale-based Refresh Recovery, on Aug. 23, Liverpool Echo relates. The letters informed the company's 16 employees that Bay TV is in administration but will continue operating while the situation is assessed, Liverpool Echo discloses. It follows a cash injection from another operator, Made TV earlier this year, into the Toxteth-based broadcaster, Liverpool Echo recounts. Chris Johnson, chief executive of Bay TV, confirmed the company had been placed into administration, Liverpool Echo relays. "We are working hard with the administrators to keep the business operating as a going concern," Liverpool Echo quotes Mr. Johnson as saying. "I am confident that the station will remain on air -- it's still on air and will remain on air. "We're looking to sell it as a going concern." According to Liverpool Echo, administrator Gordon Craig wrote to Bay TV staff saying: "It is my intention for the time being, as administrator of the company, to permit the company to continue to trade whilst I assess the situation." CATALYST HEALTHCARE: S&P Affirms 'BB+' Rating on GBP175M EIB Loan ----------------------------------------------------------------- S&P Global Ratings affirmed its 'BB+' long-term issue ratings on the GBP175 million senior secured European Investment Bank (EIB) loan due Sept. 30, 2037, and GBP218.05 million variable-rate bonds due Sept. 30, 2040, issued by Catalyst Healthcare (Manchester) Financing PLC (ProjectCo). At the same time, S&P revised the outlook on this debt to stable from negative. The recovery rating on the senior secured debt is unchanged at '2'. S&P's recovery expectations are in the lower half of the 70%-90% range, although there has been limited experience regarding default or loss in this sector to date. The rating action reflects the settlement agreement reached by Central Manchester University Hospitals NHS Foundation Trust, construction contractor Lend Lease Construction (EMEA) Ltd., and ProjectCo in relation to the long-standing dispute concerning whether a hospital's fire compartmentation was in breach of contractual documentation. In S&P's opinion, the relationship between the parties has been re-established, resulting in a collaborative working environment developing between the Trust and ProjectCo. In April 2016, the parties to the contract signed a settlement deed that was approved by the funders in June 2016. During the negotiations, the Trust did not apply any further deductions on ProjectCo and remitted full unitary payment. Based on the settlement agreement, S&P understands that: -- All the deductions in relation to firestopping defects accrued during the dispute period have been waived. ProjectCo will receive full payments, subject to a minimal reduction in the annual unitary payment for the rest of the concession. In S&P's opinion, this deduction does not materially affect the project's operating cash flow. The Trust will assume all responsibility for pending remedial works relating to the firestopping defects, which is likely to be completed in 18-24 months. "Under our base-case scenario, we expect the project to demonstrate stable operational performance, with minimal deductions under its facility management services going forward. The operation phase stand-alone credit profile (SACP) remains at 'bb+', even though we revised our preliminary operations phase SACP to 'bbb-' from 'bb+'. The change reflected that we had updated our base-case minimum annual debt service coverage ratio (ADSCR) to 1.20x from 1.17x and our average ADSCR to 1.28x from 1.26x. Our base-case assumptions include an annual unitary charge (UC) of GBP41.8 million, a total life cycle profile of GBP158 million and annual hard and soft facilities management (FM) costs of GBP11 million (all in real values and in line with ProjectCo's assumptions). We assume that the Retail Price Index (RPI) will be 1.8% for 2016, 3% for 2017, 2.5% for 2018, and between 2.6% and 3.7% thereafter (3.0% after 2026)," S&P said. "In addition, the transaction is resilient to our downside scenario, with ADSCRs always above 1.0x. Under our downside case, we increase FM and life cycle costs by 10% and management costs by 5%. We also lower RPI by 1% compared with our base case for the first five years. In addition, we assume that 35% of the largest semiannual life cycle payments will be paid two years earlier than in our base case. Compared with closest peers, this project includes a significant back-ended debt amortization, causing us to adjust the rating down by one notch," S&P noted. The stable outlook on the issue ratings reflects S&P's forecast that the project will keep delivering steady operational performance, that postsettlement defects will be rectified within the agreed timetable, and the parties will aim to maintain a collaborative working relationship. S&P also projects that the minimum ADSCR, calculated in accordance with its criteria, will remain above 1.20x. S&P could raise the issue rating by one or more notches following a period of greater operational stability, in which the Trust and ProjectCo establish a more constructive relationship, resulting in no deductions and maintenance of a minimum ADSCR above 1.2x. S&P could lower the rating if the project's operational performance deteriorates, negatively affecting the working relationships between the parties, or if the project is exposed to deductions that cannot be passed through to the respective subcontractors. S&P could also lower the rating if the project's financial profile deteriorates due to higher-than-expected costs, for example, insurance costs, or as a result of the exposure to RPI. DALTONS PLANT: Cash Flow Issues Prompt Administration ----------------------------------------------------- Muhammad Aldalou at Insider Media reports that two family-owned transport companies in Southampton have been placed in administration after suffering from cash flow issues over the last few months. Carl Jackson -- carl.jackson@quantuma.com -- and Andrew Watling -- andrew.watling@quantuma.com -- partners in the Southampton office of corporate recovery specialists Quantuma, were appointed as joint administrators to Daltons Plant Ltd. and Dalton (Southampton) Ltd. on Aug. 9, Insider Media relates. Administrators are currently working to secure a sale of the businesses and their assets, as well as safeguard the future of 20 jobs, Insider Media discloses. The businesses were founded in the 1980s and have an established reputation in the transport, distribution and storage industries, according to Insider Media. They are based at Belbins Yard, Sandy Lane, Romsey, Southampton. SABANA INC: In Administration Following "Operational Issues" ------------------------------------------------------------ Michael Barker at Fresh Product Journal reports that Sabana Incorporated has gone into administration. Administrators Cranfield Business Recovery were called in on July 25 after earlier attempts to rescue Sabana failed to materialize, Fresh Product Journal recounts. The company operated contracts to supply a number of supermarkets across the country, and Cranfield business recovery specialist Brett Barton -- brett.barton@cranfieldbusinessrecovery.co.uk. -- as cited by Fresh Product Journal, said it "ultimately succumbed to the pressure of attempting to service its debt facilities, having been plagued by a number of operational issues." Mr. Barton is currently continuing to supply to retailers in the expectation of fulfilling customer contracts, Fresh Product Journal discloses. He said he is currently working to maximize realizations in respect of the book debts and the fruit stock, Fresh Product Journal notes. Based in Sittingbourne, Ken, Sabana Incorporated is an importer and distributor of pomegranates, kiwis and other exotic fruit. WS LUSHER: Enters Administration Following Trading Losses --------------------------------------------------------- Muhammad Aldalou at Insider Media reports that W.S. Lusher & Son Ltd. is being marketed for sale after entering administration with job losses. The family-owned business was placed in administration on Aug. 5 under the care of business rescue specialist McTear Williams & Wood, Insider Media relates. According to Insider Media, partner Andrew McTear -- andrewmctear@mw-w.com -- said trading losses accrued in recent years put strain on the company and a sale of the yard to recapitalize the business proved impossible in time. Since the appointment, 24 redundancies have been made, Insider Media discloses. The company employed a total of 41 staff, including 32 site operatives and nine people in the office, Insider Media notes. "We have given everything we've got to make it work, but we've been up against too many factors. We very much hope that a potential buyer may see a business opportunity," Insider Media quotes company director Mark Lusher, who has been at the helm of the business for the last 30 years, as saying. Founded in 1924, W.S. Lusher & Son Ltd. operates principally in the specialist property restoration and improvement market. ********* 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000 or Nina Novak at 202-362-8552. * * * End of Transmission * * *