TCREUR_Public/160913.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, September 13, 2016, Vol. 17, No. 181



CROWN EUROPEAN: S&P Rates Proposed EUR310MM Sr. Unsec. Notes 'BB'


PARTNERSHIP FUND: Fitch Affirms 'BB-' IDR, Outlook Stable


FC BAYERN: Lawyer Urges Munich Court to Liquidate Club


GREECE: PM Seeks Speedier Action From Bailout Creditors


GRIFFITH PARK: S&P Assigns B- Rating to Class E Notes
HMV GROUP: Workers to Get Redundancy Payments, Minister Says


AVANTOR PERFORMANCE: S&P Affirms 'B' CCR, Outlook Stable
MINERVA LUXEMBOURG: Fitch Affirms BB- Rating on Sr. Unsec. Notes


DRYDEN 46 EURO: Moody's Assigns (P)B2 Rating to Class F Notes
JUBILEE CLO 2016-XVII: Fitch Assigns B- Rating to Cl. F Notes
STORM 2015-II: Fitch Affirms 'BB' Ratings on Two Note Classes


RCS&RD: Seeks EUR600MM Financing for Debt Restructuring

U N I T E D   K I N G D O M

ADELIE FOODS: NI Operation in Administration, 75 Jobs Affected
BHS GROUP: Insolvency Service Probes Chappell's Two Consultants
MICRO FOCUS: Moody's Puts B1 CFR on Review for Downgrade
NEWDAY FUNDING 2016-1: Fitch Assigns B Rating to GBP13.8MM Notes
NEWCASTLE BUILDING: Fitch Affirms Then Withdraws 'BB+' LT IDR

ROGERS CERAMICS: Undergoes Liquidation, 32 Jobs at Risk



CROWN EUROPEAN: S&P Rates Proposed EUR310MM Sr. Unsec. Notes 'BB'
S&P Global Ratings assigned its 'BB' issue-level rating, with a
recovery rating of '3', to Crown European Holdings S.A.'s, a
subsidiary of Crown Holdings Inc., proposed EUR310 million senior
unsecured notes due 2024.  The '3' recovery rating indicates
S&P's expectation for meaningful (50%-70%; in the upper half of
the range) recovery for lenders in the event of a payment

In addition, S&P assigned a 'BB-' issue rating, with a recovery
rating of '5', to Crown Americas LLC and Crown Americas Capital
Corp. IV's, subsidiaries of Crown Holdings Inc., proposed
$350 million senior unsecured notes due 2026.  The '5' recovery
rating indicates indicating S&P's expectation of modest (10%-30%;
lower end of the range) recovery in the event of a default.

The company intends to use the net proceeds of the offering,
along with other available funds, to repay a portion of its term
loan facility, to pay related fees and expenses associated with
offering of the notes and for general corporate purposes.

With revenue of about $8.8 billion in 2015, Philadelphia-based
Crown Holdings Inc. (Crown) is a metal container manufacturer
producing steel and aluminum cans, metals caps, and closures.
Crown's product lines serve a wide variety of end markets
including food, beverage, household, and other consumer products.

S&P bases its 'BB' corporate credit rating on Crown on S&P's
assessment of a satisfactory business risk and aggressive
financial risk profile for the company.

                          RECOVERY ANALYSIS

Key analytical factors:

   -- S&P's analysis continues to assume a simulated default in
      2018 and a gross enterprise value (EV) of $5.525 billion.
      A payment default would require a substantial and
      unexpected decline in Crown's profitability and cash flow,
      likely caused by a sharp drop in demand for metal
      containers, cost pressures, client attrition, and the
      substitution of plastic for metal packaging.  S&P's assumed
      default year for Crown is sooner than normal for a company
      that S&P rates 'BB', mainly because of the large amount of
      debt maturities that are still due in 2018, after the
      proposed $700 million reduction in term loan A balances
      with proceeds from the proposed unsecured note offerings.

   -- S&P assumes that roughly 25% of this value relates to the
      U.S. (Crown Americas and domestic subsidiaries), 45%
      relates to foreign subsidiaries (Crown European Holdings
      and subsidiaries), and 30% relates to various joint-venture
      (JV) interests.

   -- Credit facility borrowings in the U.S. benefit from a lien
      on most of Crown's domestic assets (excluding mortgages on
      real estate and 35% of the equity in its foreign
      subsidiaries) and 65% of the equity in its first-tier
      foreign subsidiaries.  Direct borrowings by foreign
      subsidiaries have additional guarantees and collateral.
      S&P assumes the $1.2 billion revolver is 85% drawn at
      default, with half of the amount borrowed abroad.  A
      collection allocation mechanism would equalize recovery
      rates for all bank tranches, despite the better guarantor
      and collateral terms for the non-U.S. borrowings.

   -- Senior notes issued by Crown European Holdings would have a
      structurally senior claim to the non-U.S. EV (relative to
      U.S. debt), although this claim is unsecured and
      effectively junior to foreign secured borrowings.  Although
      S&P's analysis suggests the possibility of a full recovery,
      it has capped its recovery rating on this debt at '3'.
      This reflects S&P's practice of capping unsecured recovery
      ratings on debt issued by companies that S&P rates in the
      'BB' category at '3' to reflect the heightened risk that
      such companies may change their capital structure in ways
      that could impair unsecured recovery prospects.

   -- Senior notes issued by Crown Americas have unsecured
      guarantees by domestic entities, while the debentures
      issued by Crown Cork and Seal do not have guarantees from
      operating subsidiaries and are considered structurally
      subordinated with regard to most other claims.

Simulated default assumptions:
   -- Simulated year of default: 2018
   -- EBITDA at emergence: $850 million
   -- EBITDA multiple: 6.5x

Simplified waterfall:
   -- Net EV (after 5% administrative costs): $5.249 billion
   -- Valuation split (JVs/Crown European/Crown Americas):
   -- JV net EV: $1.575 billion
   -- JV direct borrowings (estimated): $187 million
   -- JV third party equity interests: $291 million
   -- Residual JV value (split Crown Americas/Crown European):
      $1.097 billion (82%/18%)
   -- Crown European net EV: $2.362 billion
   -- Adjustment to Crown European EV for accounts/receivables
      securitization: $200 million
   -- Net value from JV interests: $907 million
   -- Adjustment to Crown European EV for pensions/other
      postemployment benefits: $200 million
   -- Foreign credit facility borrowings: $812 million
   -- Crown European unsecured notes: $1.767 billion
      -- Recovery expectations: 50%-70% (upper half of the range)
   -- Residual value available to U.S. creditors: $291 million
   -- Crown Americas EV: $1.312 billion
   -- Adjustment for U.S. accounts/receivable securitizations:
      $133 million
   -- Net value from JV interests: $190 million
   -- Net value to U.S. creditors: $1.661 billion
   -- Estimated credit facility collateral value: $2.173 billion*
   -- Secured credit facility debt: $2.298 billion
   -- Estimated recovery from collateral/total: 95%/95%
      -- Recovery expectations: 90%-100%
   -- Total value available to unsecured claims: $306 million
   -- Crown Americas senior unsecured notes: $1.378 billion
   -- Deficiency claim on secured credit facility: $125 million
   -- Domestic pension rejection/amendment claim and asbestos
      liabilities: $400 million
       -- Recovery expectations: 10%-30% (lower half of the
   -- Remaining value for debentures: $0
   -- Unguaranteed debentures: $410 million
       -- Recovery expectations: 0%-10%

Note: All debt amounts above include six months of prepetition

*Estimated collateral available to the credit facility includes
direct foreign borrowings of about $812 million, $1.2 billion
from Crown Americas (90% of the net U.S. EV, which reflects a
rough adjustment for the lack of mortgages on real property),
$190 million from net JV interests, and 65% of the equity value
in Crown European ($189 million).  S&P assumes the $1.2 billion
revolving credit facility is 85% drawn at default, with 50% of
this amount borrowed abroad.  S&P's analysis assumes adjustments
or claims for postretirement liabilities of about 50% of the
underfunded amounts.


Crown Holdings Inc.
Corporate Credit Rating                      BB/Stable/--

New Rating

Crown Holdings Inc.
Crown European Holdings S.A.
EUR310 mil sr unsecd notes due 2024            BB
  Recovery Rating                             3

Crown Holdings Inc.
Crown Americas LLC
Crown Americas Capital Corp. IV
$350 mil sr unsecd notes due 2026            BB-
  Recovery Rating                             5


PARTNERSHIP FUND: Fitch Affirms 'BB-' IDR, Outlook Stable
Fitch Ratings has affirmed Georgia's JSC Partnership Fund's (PF)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDR)
at 'BB-' with Stable Outlooks.  The agency has also affirmed the
company's Short-Term Local Currency IDR at 'B'.

                       KEY RATING DRIVERS

PF's ratings are equalized with those of Georgia (BB-/Stable/B),
which reflects PF's status as an extension of the government in
managing its strategic assets, tight control by the government
and 100% state ownership.  They also reflect PF's strong
financial and operational integration with Georgian government.

Fitch uses its public-sector entities rating criteria in its
analysis of PF and views it as being credit-linked to the
sovereign.  Fitch views the Georgian government's ability and
intent to support PF's potential issued or guaranteed debt as a
key factor in determining rating equalization with the sovereign.

Fitch views PF as an entity of strategic importance for the
Georgian government and factors in its integration with the
sovereign, including timely support if needed.  While the
Georgian government remains committed to economic development
agenda, we believe PF's strategic role in facilitating
investments, particularly in the energy sector, will not change.

Fitch views Georgia's willingness to support PF as largely
unchanged, as it remains an important state agent in implementing
its development agenda.  Fitch treats recent state contributions
to PF in the form of pipelines, land plots and other property
along with the unchanged funding model via dividends from its
portfolio companies as a rating support factor and evidence of
high financial integration with the sovereign.

PF is 100% owned by the state and its mandate is to oversee key
national infrastructure corporations.  The state endowed PF with
100% stakes in Georgian Railway (BB-/Stable), JSC Georgian Oil
and Gas Corporation (GOGC, BB-/Stable), JSC Georgian State
Electrosystem, and JSC Electricity System Commercial Operator.
PF's operations are based on the special law, highlighting its
unique nature and special status.

Fitch views the government's control and oversight over PF's
operations as strong.  PF's supervisory board is chaired by the
Georgian prime minister and composed of leading cabinet members
and independent directors from the private sector.  The state
mandates PF's key policies on debt, dividends and investments,
appoints an external auditor, monitors and controls the use of
government funds and property allocated to the entity.

In Fitch's view, PF is deeply integrated with the national
budgetary system.  Georgia's government uses PF as a financing
vehicle to promote investments stimulating growth of the national
economy.  PF is aimed at development of private equity
investments in viable economic projects generating positive
economic returns, a market which is currently undeveloped in
Georgia.  Along with private funding PF co-invests in
agriculture, manufacturing, real estate and energy and the
successful exit of several finished projects in 2014-2016 proves
this strategy to be efficient.

PF's current debt stock comprises a commercial bank loan
(USD150 mil.), maturing in 2020 and a subordinated long-term loan
from a subsidiary (USD6 mil.).  PF can also occasionally borrow
on a short-term basis from local banks and its subsidiaries
(Grail and GOGC) to fund cash mismatches.  The fund's interim
liquidity stood at GEL276 mil. at the beginning of September,
remaining sufficient to meet debt servicing needs (2015: GEL269

                      RATING SENSITIVITIES

Any positive rating action on Georgia, coupled with continued
support from the state, would be rating positive, as PF is credit
linked to the sovereign.

Weaker links with the state would be rating negative, a downgrade
of Georgia would also be negative.


FC BAYERN: Lawyer Urges Munich Court to Liquidate Club
ESPN FC reports that a lawyer has demanded the liquidation of FC
Bayern Munich eV, the registered club that owns 75.01% of Bayern
Munich AG, the company in charge of the football club's
operation, from the register of associations.

Lars Leuschner, a professor for civil law, business law and
company law at the university of Osnabruck, has urged Munich's
district court to enforce the liquidation, ESPN FC relates.

Mr. Leuschner, who is a Bayern supporter, cited a "legal form
breach" that could affect other Bundesliga clubs as well, ESPN FC
relays.  According to ESPN FC, he told Die Zeit he was seeking
for clarity for registered clubs, citing examples of other
Bundesliga clubs like Mainz or Schalke and adding: "The current
structures of those clubs are against the law -- no doubt about

Bayern, as cited by ESPN FC, said they believe the liquidation
demand is "without merit" and have said they will make an in-
depth statement later this month as requested by Munich's
district court.


GREECE: PM Seeks Speedier Action From Bailout Creditors
The Associated Press reports that Greece's prime minister Alexis
Tsipras is pressing for speedier action from bailout creditors to
ease the country's huge debt burden.

Mr. Tsipras on Sept. 11 said that Greece "has the right for a
fair debt adjustment" after years of punishing spending and
income cuts, the AP relates.

He said the country "cannot wait much longer", the AP notes.

According to the AP, Greece's creditors have said they are
prepared to discuss better repayment terms for the country's
debt, which exceeds 175% of annual economic output.

Greek officials were set to meet on Sept. 12 in Athens with
representatives of bailout creditors, the AP relays.

The finance ministry says the talks will focus on fighting
corruption and Greece's ambitious privatization program, the AP


GRIFFITH PARK: S&P Assigns B- Rating to Class E Notes
S&P Global Ratings assigned its credit ratings to Griffith Park
CLO DAC's class A-1, A-2A, A-2B, B, C, D, and E senior secured
notes.  At closing, the issuer also issued unrated subordinated

The transaction is a cash flow collateralized loan obligation
(CLO), securitizing a portfolio of primarily senior secured loans
granted to speculative-grade corporates.  Blackstone/GSO Debt
Funds Management Europe Ltd. manages the transaction.

The issuer expects to purchase more than 50% of the effective
date portfolio from Blackstone/GSO Corporate Funding Designated
Activity Company (BGCF).  The assets from BGCF that were not
settled at closing are subject to participations.  The
transaction documents require that the issuer and BGCF use
commercially reasonable efforts to elevate the participations by
transferring to the issuer the legal and beneficial interests in
such assets as soon as reasonably practicable.

Under the transaction documents, the rated notes pay quarterly
interest unless a frequency switch event occurs.  Following this,
the notes permanently switch to semiannual interest payments.

The portfolio's reinvestment period will end 4.1 years after
closing, and the portfolio's maximum average maturity date will
be eight years after closing.

On the effective date, S&P understands that the portfolio will
represent a well-diversified pool of corporate credits, with a
fairly uniform exposure to all of the credits.  Therefore, S&P
has conducted its credit and cash flow analysis by applying its
criteria for corporate cash flow collateralized debt obligations.

In S&P's cash flow analysis, it has used the portfolio target par
amount of EUR440.0 million, a weighted-average spread of 4.15%,
and the weighted-average recovery rates for the expected
portfolio on the effective date, calculated in accordance with
S&P's corporate cash flow CDO criteria.

Citibank N.A. (London Branch) is the bank account provider and
custodian.  The portfolio manager can purchase up to 20% of non-
euro-denominated obligations, as long as the issuer hedges the
currency risk with an asset swap counterparty.  The participants'
downgrade remedies are in line with S&P's counterparty criteria.

The issuer is in line with S&P's bankruptcy remoteness criteria.

Following S&P's analysis of the credit, cash flow, counterparty,
operational, and legal risks, S&P believes its ratings are
commensurate with the available credit enhancement for each class
of notes.


Griffith Park CLO Designated Activity Company
EUR453.6 mil secured fixed- and floating-rate notes

Class               Rating             Amount
                                       (mil, EUR)
A-1                 AAA (sf)           261.8
A-2A                AA (sf)            47.3
A-2B                AA (sf)            11.0
B                   A (sf)             22.7
C                   BBB (sf)           23.5
D                   BB (sf)            26.8
E                   B- (sf)            11.8
Sub                 NR                 48.7

NR--Not rated

HMV GROUP: Workers to Get Redundancy Payments, Minister Says
Noel Baker at Irish Examiner reports that Ireland's Minister for
Social Protection, Leo Varadkar, said workers at HMV who lost
their jobs when the retail chain went into liquidation will have
their redundancy payments promptly dealt with.

The minister looked to reassure the workers after HMV's presence
in Ireland came to an end with the closure of remaining outlets
in Limerick, Dundrum, Henry St, and Liffey Valley, says the

Mr. Varadkar said eligible staff would be entitled to payments
from the State under the Redundancy and Insolvency Payments
schemes, Irish Examiner relates.

In a statement issued on Sept. 11, Mr. Varadkar, as cited by
Irish Examiner, said the Department of Social Protection would
deal promptly with Redundancy and Insolvency applications in
respect of the former employees of HMV when they are received
from the liquidator.

In January 2013, HMV announced it was closing its 16 locations,
and making 300 staff redundant after a receiver was appointed,
Irish Examiner recounts.

                         About HMV Group

United Kingdom-based HMV Group plc is engaged in retailing of
pre-recorded music, video, electronic games and related
entertainment products under the HMV and Fopp brands, and the
retailing of books principally under the Waterstone's brand.  The
Company operates in four segments: HMV UK & Ireland, HMV
International, HMV Live, and Waterstone's.

On January 14, 2013, HMV Group went into administration after
suppliers refused a request for a GBP300 million lifeline for the
company.  Deloitte was appointed as administrator to the chain,
which was hit by growing competition from online rivals,
supermarkets, and illegal downloads.


AVANTOR PERFORMANCE: S&P Affirms 'B' CCR, Outlook Stable
S&P Global Ratings affirmed the 'B' corporate credit rating on
Avantor Performance Materials Holdings S.A.  The outlook is

At the same time, S&P affirmed its 'B' issue-level and '3'
recovery rating on the company's existing first-lien term loan
and revolving credit facility following the issuance of the
company's proposed $400 million incremental term loan and
increase of the commitment under the company's revolving credit
facility to $75 million based on preliminary terms and
conditions.  S&P is also assigning its 'B' issue-level rating and
'3' recovery rating to the proposed $170 million delayed draw
first-lien term loan. The '3' recovery rating indicates S&P's
expectation of meaningful (lower end of the 50% to 70% range)
recovery in the event of a payment default.

S&P is also affirming its 'CCC+' issue-level rating and '6'
recovery rating on the company's existing second-lien term loan.
The '6' recovery rating indicates S&P's expectation of negligible
(0% to 10% range) recovery in the event of a payment default.
The proposed debt is to be issued by Avantor Performance
Materials Holdings Inc. and guaranteed by Avantor Performance
Materials Holdings S.A.

"The stable outlook reflects our view that, following the
proposed transactions, the combined company's credit measures
should strengthen over the next year," said S&P Global Ratings
credit analyst Brian Garcia.  "This is due to expected EBITDA
growth from successfully implemented cost-saving and price-
improvement initiatives, as well as a recovery from operational
setbacks," he added.

S&P could lower the ratings within the next 12 months if sales to
a major customer dropped unexpectedly, or if a shift in
technology resulted in significantly lower sales of a product (or
group of products), without improvements in other areas to offset
them.  S&P could also lower the ratings if the company faces
integration related issues, resulting in unexpected costs,
depressing EBITDA for a prolonged period of time.  In such a
scenario, S&P would expect pro forma debt-to-EBITDA ratio to
remain above 7x on a sustained basis.  S&P could also consider a
downgrade if liquidity diminished and covenant compliance became
a risk, or if the company increased debt leverage further to fund
an additional return to shareholders or growth investments.

S&P could raise the ratings within the next 12 months if the
company were to reduce debt significantly, resulting in pro forma
debt to EBITDA improving to below 5x on a sustainable basis.  To
consider an outlook revision, S&P would also expect the company's
business risk profile to remain what S&P considers fair and for
the company to maintain liquidity we assess as adequate.  S&P
would also expect the company to maintain supportive financial
policies, including a prudent approach to funding growth
initiatives and shareholder rewards while maintaining pro forma
debt to EBITDA below 5x.

Avantor will be merging with NuSil, a leading manufacturer of
specialty silicone materials.  Following the transactions, S&P
expects Avantor to benefit from potential cost synergies,
although S&P believes there is some integration risk.  S&P also
expects EBITDA margins from Avantor's legacy businesses to
improve over the next year as a result of ongoing cost-saving and
price-improvement initiatives that the company has implemented.
S&P continues to assess the company's business risk profile as
fair and financial risk profile as high leveraged, pro forma for
the transactions.

MINERVA LUXEMBOURG: Fitch Affirms BB- Rating on Sr. Unsec. Notes
Fitch Ratings has affirmed Minerva S.A.'s Long-Term Foreign and
Local Issuer Default Ratings at 'BB-'.  The Rating Outlook
remains Stable.

Fitch has also assigned a 'BB-(EXP)' rating to Minerva S.A.'s
(Minerva) proposed issuance of global notes.  The proposed senior
unsecured notes will mature in 2026.  The notes will be issued
through its wholly owned subsidiary, Minerva Luxembourg S.A.
(Minerva Lux) and will be irrevocably guaranteed by Minerva.
Proceeds will be used to refinance existing debt and for general
corporate purposes.

In conjunction with these actions, Fitch has upgraded the
national scale rating of Minerva to 'A (bra)' from 'A- (bra)'.
This rating action reflects Minerva's improvement within the 'BB-
' rating level due to lower leverage, which has resulted from
increased EBITDA and cash proceeds from a BRL741 million capital
injection from Salic (UK) Ltd.

Declining Net Leverage

Fitch expects Minerva's net debt/EBITDA ratio to be around 3.0x
in 2016, compared to 4.2x during 2015.  As of June 30, 2016, the
company's total debt/EBITDA remained high for the rating level at
5.2x.  The improvement in net leverage is due to positive free
cash flow (FCF) and the capital injection.

Improving Revenues and EBITDA

Minerva's revenues and EBITDA were affected positively by the
full integration of past acquisitions, increased export sales and
ability to implement cost efficiency measures.  Minerva enjoyed
higher prices for fresh beef in the domestic market due to its
strategy of optimizing distribution channels and focusing on food
service and small and medium retailers.  As of the LTM ended June
30, 2016, the company reported net revenues and EBITDA growth of
14.4% and 36.6%, respectively, while EBITDA margin increased by
200bps to 11.5% compared to the same period last year.

Cash Flow Turns Positive

Fitch expects Minerva's FCF after interest expense to improve to
more than BRL250 million in 2016 from BRL34 million in 2015.  The
improvement will be driven by a reduction in capex as investments
in recently acquired plants taper off.  The ramping-up of these
assets, particularly those in Colombia, should improve capacity
utilization levels and dilute fixed costs.  These transactions
are likely to enhance the company's geographic diversification
but not its product diversification.

Improving Industry and Domestic Outlook

Cattle prices are projected to soften in Brazil during 2017 as
the availability of cattle for slaughter increases.  The herd
size is at a record level of nearly 220 million head.
Positively, Brazilian beef producers continue to have access to
more export markets.  In May 2015, mainland China approved
Brazilian beef imports and in August 2016 the United States
agreed to open its market to Brazilian beef, which will boost
demand from 2016 onwards and should facilitate the opening of
additional markets for Brazilian beef producers.  Furthermore, it
appears that the Brazilian market is close to reaching a bottom
from an economic perspective, which should lead to more favorable
domestic demand dynamics.

Product, Country Concentration Risks

Minerva is less diversified from a product and geographic
position than the two other large protein companies based in
Brazil, JBS S.A. and Marfrig S.A.  About 69% of Minerva's
slaughtering capacity is located in Brazil, 13% in Uruguay, 13%
Paraguay and 5% in Colombia.  With its large export presence, the
company's profitability is also closely tied to exchange rate
variations. Among the significant risks faced by the company are
a downturn in the economy of a given export market, the
imposition of increased tariffs or sanitary barriers, and strikes
or other events that may affect the availability of ports and
transportation.  Minerva's export revenues represent 68% of total

                          KEY ASSUMPTIONS

   -- Middle single digits revenues growth boosted by volume
      growth in beef division exports (6%), and stable volumes
      and higher prices in domestic market compared to 2015.
   -- Stable and sustained EBITDA margins going forward;
   -- Positive FCF;
   -- Adjusted net leverage below 3.0x in 2016, deleveraging
      going forward;
   -- No Dividends payment in 2016.

                        RATING SENSITIVITIES

Positive Rating Triggers: An upgrade could be triggered by
additional geographic and product diversification, continuous
positive free cash flow generation and substantial decreases in
gross and net leverage to below 4.5x and 3.0x, respectively, on a
sustained basis.

Negative Rating Triggers: A negative rating action could occur as
a result of a sharp contraction of Minerva's performance,
increased net leverage above 5x on a sustained basis as a result
of either a large debt-financed acquisition or asset purchases,
or as a result of a severe operational deterioration due to
disruptions in exports.


Minerva's liquidity remains adequate as of June 30, 2016;
liquidity is supported by BRL2.7 billion of cash and cash
equivalents while short-term debt totals BRL1.3 billion.  Around
23% of debt is short term.  The main debt repayment is due in
2023 (BRL2.8 billion).  Approximately 84% of total debt was
exposed to foreign exchange variation.


Fitch has taken these actions on Minerva:


   -- Long-Term Foreign & Local Currency IDR affirmed at 'BB-';
      Outlook Stable;
   -- National Long-Term Rating upgraded to 'A(bra)' from
      'A-(bra)'; Outlook Stable.

Minerva Luxembourg S.A.:

   -- Senior unsecured notes due 2017, 2019, 2022, 2023 and
      perpetual affirmed at 'BB-';
   -- Senior unsecured notes due 2026 rated 'BB-(EXP)'.


DRYDEN 46 EURO: Moody's Assigns (P)B2 Rating to Class F Notes
Moody's Investors Service announced that it has assigned these
provisional ratings to notes to be issued by Dryden 46 Euro CLO
2016 B.V.:

  EUR208,500,000 Class A-1 Senior Secured Floating Rate Notes due
   2030, Assigned (P)Aaa (sf)
  EUR31,500,000 Class A-2 Senior Secured Fixed Rate Notes due
   2030, Assigned (P)Aaa (sf)
  EUR38,050,000 Class B-1 Senior Secured Floating Rate Notes due
   2030, Assigned (P)Aa2 (sf)
  EUR12,950,000 Class B-2 Senior Secured Fixed Rate Notes due
   2030, Assigned (P)Aa2 (sf)
  EUR22,600,000 Class C Mezzanine Secured Deferrable Floating
    Rate Notes due 2030, Assigned (P)A2 (sf)
  EUR21,400,000 Class D Mezzanine Secured Deferrable Floating
    Rate Notes due 2030, Assigned (P)Baa2 (sf)
  EUR23,900,000 Class E Mezzanine Secured Deferrable Floating
    Rate Notes due 2030, Assigned (P)Ba2 (sf)
  EUR11,800,000 Class F Mezzanine Secured Deferrable Floating
    Rate Notes due 2030, Assigned (P)B2 (sf)

Moody's issues provisional ratings in advance of the final sale
of financial instruments, but these ratings only represent
Moody's preliminary credit opinions.  Upon a conclusive review of
a transaction and associated documentation, Moody's will endeavor
to assign definitive ratings.  A definitive rating (if any) may
differ from a provisional rating.

                      RATINGS RATIONALE

Moody's provisional rating of the rated notes addresses the
expected loss posed to noteholders by the legal final maturity of
the notes in 2030.  The provisional ratings reflect the risks due
to defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure.  Furthermore, Moody's
is of the opinion that the collateral manager, PGIM Limited, has
sufficient experience and operational capacity and is capable of
managing this CLO.

Dryden 46 Euro CLO 2016 B.V. is a managed cash flow CLO.  At
least 96% of the portfolio must consist of senior secured loans
and senior secured bonds.  The portfolio is expected to be 75%
ramped up as of the closing date and to be comprised
predominantly of corporate loans to obligors domiciled in Western

PGIM Limited will manage the CLO.  It will direct the selection,
acquisition and disposition of collateral on behalf of the Issuer
and may engage in trading activity, including discretionary
trading, during the transaction's four-year reinvestment period.
Thereafter, purchases are permitted using principal proceeds from
unscheduled principal payments and proceeds from sales of credit
risk obligations, and are subject to certain restrictions.

In addition to the eight classes of notes rated by Moody's, the
Issuer will issue EUR48.1 mil. of subordinated notes, which will
not be rated.

The transaction incorporates interest and par coverage tests
which, if triggered, divert interest and principal proceeds to
pay down the notes in order of seniority.

Factors that would lead to an upgrade or downgrade of the

The rated notes' performance is subject to uncertainty.  The
notes' performance is sensitive to the performance of the
underlying portfolio, which in turn depends on economic and
credit conditions that may change.  PGIM Limited's investment
decisions and management of the transaction will also affect the
notes' performance.

Loss and Cash Flow Analysis:

Moody's modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published in
December 2015.  The cash flow model evaluates all default
scenarios that are then weighted considering the probabilities of
the binomial distribution assumed for the portfolio default rate.
In each default scenario, the corresponding loss for each class
of notes is calculated given the incoming cash flows from the
assets and the outgoing payments to third parties and
noteholders.  Therefore, the expected loss or EL for each tranche
is the sum product of (i) the probability of occurrence of each
default scenario and (ii) the loss derived from the cash flow
model in each default scenario for each tranche.  As such,
Moody's encompasses the assessment of stressed scenarios.

Moody's used these base-case modeling assumptions:

Par amount: EUR 400,000,000
Diversity Score: 43
Weighted Average Rating Factor (WARF): 2850
Weighted Average Spread (WAS): 4.40%
Weighted Average Coupon (WAS): 6.00%
Weighted Average Recovery Rate (WARR): 40%
Weighted Average Life (WAL): 8 years

Moody's has analyzed the potential impact associated with
sovereign related risk of peripheral European countries.  As part
of the base case, Moody's has addressed the potential exposure to
obligors domiciled in countries with local currency country risk
ceiling of A1 or below.  For countries which are not member of
the European Union, the foreign currency country risk ceiling
applies at the same levels under this transaction.  Following the
effective date, and given the portfolio constraints and the
current sovereign ratings in Europe, such exposure may not exceed
15% of the total portfolio.  As a result and in conjunction with
the current foreign government bond ratings of the eligible
countries, as a worst case scenario, a maximum 15% of the pool
would be domiciled in countries with A3 local or foreign currency
country ceiling.  The remainder of the pool will be domiciled in
countries which currently have a local or foreign currency
country ceiling of Aaa or Aa1 to Aa3.  Given this portfolio
composition, the model was run with different target par amounts
depending on the target rating of each class as further described
in the methodology.  The portfolio haircuts are a function of the
exposure size to peripheral countries and the target ratings of
the rated notes and amount to 2.00% for the Class A-1 and A-2
notes, 1.25% for the Class B-1 and B-2 notes, 0.50% for the Class
C and 0% for Classes D, E, and F.

Stress Scenarios:

Together with the set of modelling assumptions above, Moody's
conducted additional sensitivity analysis, which was an important
component in determining the provisional rating assigned to the
rated notes.  This sensitivity analysis includes increased
default probability relative to the base case.  Below is a
summary of the impact of an increase in default probability
(expressed in terms of WARF level) on each of the rated notes
(shown in terms of the number of notch difference versus the
current model output, whereby a negative difference corresponds
to higher expected losses), holding all other factors equal:

Percentage Change in WARF: WARF + 15% (to 3278 from 2850)
Ratings Impact in Rating Notches:
Class A-1 Senior Secured Floating Rate Notes: 0
Class A-2 Senior Secured Fixed Rate Notes: 0
Class B-1 Senior Secured Floating Rate Notes: -2
Class B-2 Senior Secured Fixed Rate Notes: -2
Class C Mezzanine Secured Deferrable Floating Rate Notes: -2
Class D Mezzanine Secured Deferrable Floating Rate Notes: -2
Class E Mezzanine Secured Deferrable Floating Rate Notes: -1
Class F Mezzanine Secured Deferrable Floating Rate Notes: 0
Percentage Change in WARF: WARF +30% (to 3705 from 2850)

Ratings Impact in Rating Notches:
Class A-1 Senior Secured Floating Rate Notes: -1
Class A-2 Senior Secured Fixed Rate Notes: -1
Class B-1 Senior Secured Floating Rate Notes: -3
Class B-2 Senior Secured Fixed Rate Notes: -3
Class C Mezzanine Secured Deferrable Floating Rate Notes: -4
Class D Mezzanine Secured Deferrable Floating Rate Notes: -2
Class E Mezzanine Secured Deferrable Floating Rate Notes: -1
Class F Mezzanine Secured Deferrable Floating Rate Notes: 0

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in December 2015.

JUBILEE CLO 2016-XVII: Fitch Assigns B- Rating to Cl. F Notes
Fitch Ratings has assigned Jubilee 2016-XVII B.V.'s notes these
final ratings:

  Class A: 'AAAsf'; Outlook Stable
  Class B: 'AAsf'; Outlook Stable
  Class C: 'Asf'; Outlook Stable
  Class D: 'BBBsf'; Outlook Stable
  Class E: 'BBsf'; Outlook Stable
  Class F: 'B-sf'; Outlook Stable
  Subordinated notes: not rated

Jubilee 2016-XVII is a cash flow collateralized loan obligation
(CLO).  Net proceeds from the notes issue are being used to
purchase a EUR400 mil. portfolio of mostly European leveraged
loans and bonds.  The portfolio is managed by Alcentra Ltd.  The
reinvestment period is scheduled to end in 2020.

                       KEY RATING DRIVERS

'B'/'B-' Portfolio Credit Quality

Fitch places the average credit quality of obligors in the
'B'/'B-' range.  The agency has public ratings or credit opinions
on all of the obligors in the identified portfolio.  The Fitch
weighted average rating factor of the identified portfolio is

High Expected Recoveries
The portfolio will comprise of a minimum 90% senior secured
obligations.  The Fitch weighted average recovery rate of the
identified portfolio is 67%.

Diversified Asset Portfolio
The covenanted maximum exposure to the top 10 obligors for
assigning the final ratings is 20% of the portfolio balance.
This covenant ensures that the asset portfolio will not be
exposed to excessive obligor concentration.

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

Hedged Non-Euro Asset Exposure
The transaction is permitted to invest up to 30% of the portfolio
in non-euro assets, provided perfect asset swaps can be entered

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

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

                      RATING SENSITIVITIES

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

STORM 2015-II: Fitch Affirms 'BB' Ratings on Two Note Classes
Fitch Ratings has affirmed Storm 2015-II B.V., as:

  Class A (ISIN XS1271705177) affirmed at 'AAAsf'; Outlook Stable
  Class B (ISIN XS1271705334) affirmed at 'AAsf'; Outlook Stable
  Class C (ISIN XS1271705417) affirmed at 'A-sf'; Outlook Stable
  Class D (ISIN XS1271705680) affirmed at 'BBsf'; Outlook Stable
  Class B (ISIN XS1271705763) affirmed at 'BBsf'; Outlook Stable

The transaction is a securitization of Dutch mortgages originated
by Obvion N.V., which is wholly owned by Rabobank

                         KEY RATING DRIVERS

Stable Performance
Late-stage arrears (loans that have been delinquent for over
three months) are low at 5bps of current balance.  This is as we
expected, given that the transaction closed less than a year ago.
However, the arrears figure compares favorably with that in other
Storm transactions 10-11 months after issuance.

NHG Loans
The portfolio comprises 33% loans that benefit from a Nationale
Hypotheek Garantie (NHG) guarantee.  No reduction in foreclosure
frequency is applied against these loans, based on historical
data from Obvion's loan book.

Based on recent evidence of recoveries on NHG guaranteed loans,
in its analysis of NHG guaranteed loans, Fitch applied an 85%
compliance ratio.

Counterparty Exposure
Rabobank fulfils a number of roles in the transaction.  The
rating trigger and remedial actions prescribed in the transaction
documentation are in line with Fitch's criteria.  As such, full
credit is given to structural mitigants regarding commingling
risk, construction deposit set-off and the swap, all of which
rely on Rabobank's creditworthiness.

Treatment of Borrowers with 'Other' Employment Type
The employment for a negligible portion of the loans was labelled
as 'Other' in the loan-by-loan datatape.  Fitch has classified
the employment for such loans as 'Unknown' in its analysis and
applied a 30% foreclosure frequency increase.

                         RATING SENSITIVITIES

Adverse economic performance could lead to underperformance of
the assets.  Any resulting compression of excess spread would
affect the credit enhancement available to the notes and may lead
to negative rating actions.


RCS&RD: Seeks EUR600MM Financing for Debt Restructuring
SeeNews reports that RCS&RD is looking for a EUR600 million
(US$670 million) 10-year financing for debt restructuring.

RCS&RDS said in an announcement published in Romania's official
gazette on Aug. 30 that the company's shareholders will decide on
Oct. 3 on the financing method, SeeNews relates.

According to SeeNews, the company said such funding can be
obtained both through the international and/or local capital
market, including but not limited to the issuance of bonds and/or
other debt instruments and/or debt from Romanian or international
banks, financial institutions, investment funds, and/or any other
private entities.  It said the financing could be raised in one
or more tranches, SeeNews relays.

At end-2015, RCS&RDS had debts of RON4.44 billion (US$1.1
billion/EUR993 million), up 2% year-on-year, SeeNews discloses.

RCS&RDS is the largest Romanian cable and Internet provider,
offering nationwide satellite and cable television, cable
internet, VoIP and 3G services.  It is also active in Hungary,
Spain and Italy.

U N I T E D   K I N G D O M

ADELIE FOODS: NI Operation in Administration, 75 Jobs Affected
Margaret Canning at Belfast Telegraph reports that Adelie Foods
has confirmed it has placed its Northern Ireland operation in
administration, putting 75 jobs at risk.

The company said it had appointed administrators to the former
Bite Group in Enniskillen in order to focus on building its
"core, mainland UK business", Belfast Telegraph relates.

According to Belfast Telegraph, a spokesman for Adelie confirmed
that insolvency experts Tom Keenan -- -- and
Scott Murray -- -- from Keenan Corporate
Finance had been appointed administrators.

But he said it was too early to confirm if any redundancies would
be made, Belfast Telegraph relays.

The latest move marks the second time that the business has been
in administration, Belfast Telegraph notes.  It entered
insolvency proceedings last year after losing a major contract,
leading to Adelie's purchase of the company, Belfast Telegraph

Adelie Foods is a food company based in England.

BHS GROUP: Insolvency Service Probes Chappell's Two Consultants
Billy Bambrough at City A.M. reports that the Insolvency Service
has questioned two consultants who advised former bankrupt racing
driver Dominic Chappell over the purchase of BHS.

Stephen Bourne and Mark Tasker worked with Chappell ahead of him
buying the loss-making chain for GBP1 from retail tycoon Philip
Green, City A.M. relates.

Messrs. Bourne and Tasker were paid GBP387,500 each for advising
Chappell's Retail Acquisitions according to a documents sent to
the pensions regulator in June last year, City A.M. recounts.

Deloitte and Linklaters are acting for Mr. Green as he tries to
come up with a sum of money to plug BHS' ballooning pension
deficit, City A.M. discloses.

BHS was found to have a GBP571 million pension deficit after it
was put in to administration and Chappell's group was accused of
taking at least GBP7 million from the dying chain, City A.M.

BHS Group was a high street retailer offering fashion for the
whole family, furniture and home accessories.

MICRO FOCUS: Moody's Puts B1 CFR on Review for Downgrade
Moody's Investors Service has placed on review for downgrade the
B1 corporate family rating, the B1-PD probability of default
rating (PDR) for Micro Focus International plc as well as the B1
senior secured facilities issued by MA FinanceCo., LLC.

"The review was triggered by Micro Focus' announcement of its
merger proposal with the Software Business Segment of Hewlett
Packard Enterprise (HPE Software) which is much larger in size
than Micro Focus, says Falk Frey, Senior Vice President and lead
analyst at Moody's for Micro Focus.  The transaction with a value
of $8.8 billion will result in an estimated Moody's adjusted
leverage of close to 4.0x", Mr. Frey added.

The review will mainly but not exclusively focus on a more
detailed analysis of the financial impact of the merger and the
resulting credit metrics, implementation costs, possible
synergies and its time horizon as well as the ability and
timeline of de-leveraging.

Moody's expects to close the review within the next three months
and anticipates that a possible downgrade will be limited to one
notch.  Should our more detailed analysis of the implications of
the merger confirm our current estimates on the resulting credit
metrics and financials the review might also result an
affirmation of the current rating.

                        RATINGS RATIONALE


Micro Focus has secured a total of $5.5 billion of debt financing
related to the transaction including a revolving credit facility
of $500 million.  These commitments are deemed to be sufficient
to finance the $2.5 billion cash payment to HPE Software, a $400
million cash distribution to current Micro Focus' shareholders,
fees and royalties as well as the refinancing of Micro Focus
outstanding debt of around $2.1 billion.

What Could Change the Rating -- Down/Up

The ratings could be downgraded in case of (1) a prolonged
decline in revenue, EBITDA or cash flow, particularly if there
has not been a material reduction in debt and leverage i.e.,
debt/EBITDA not declining to 3.0x (3.6x per October 2015) or
below in the next two years; (2) inability to generate free cash
flows (as Moody's-adjusted) of around $200 million p.a. from
financial year 2016 (ending April 30, 2016) onwards, as well as a
material deterioration in the company's liquidity profile.

The ratings could be upgraded in case of a successful integration
of the recent acquisitions thereby being able to at least
stabilize current revenue declines from the existing product
portfolio and applying free cash flows generated to materially
reduce debt, in line with publicly stated target of net debt to
Facility EBITDA leverage of 2.5x within 2 years of closing.  On a
pro-forma basis, following the Serena acquisition this measure is

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

Headquartered in Newbury, UK, Micro Focus is a leading software
company specializing in software solutions that allow companies
to develop, test, deploy, assess and modernize business critical
applications.  The company generated sales of approximately
$1.2 billion in business year ending April 30, 2016, and reported
an adjusted EBITDA of $546 million.

NEWDAY FUNDING 2016-1: Fitch Assigns B Rating to GBP13.8MM Notes
Fitch Ratings has assigned NewDay Funding's series 2016-1 notes
ratings as:

  GBP129.3 mil. Series 2016-1 A: 'AAAsf'; Outlook Stable
  GBP18.8 mil. Series 2016-1 B: 'AAsf'; Outlook Stable
  GBP27.8 mil. Series 2016-1 C: 'Asf'; Outlook Stable
  GBP37.9 mil. Series 2016-1 D: 'BBBsf'; Outlook Stable
  GBP20.1 mil. Series 2016-1 E: 'BBsf'; Outlook Stable
  GBP13.8 mil. Series 2016-1 F: 'Bsf'; Outlook Stable

Fitch has simultaneously affirmed these tranches:

  GBP147.3 mil. Series 2015-1 A: 'AAAsf'; Outlook Stable
  GBP21.6 mil. Series 2015-1 B: 'AAsf'; Outlook Stable
  GBP31.8 mil. Series 2015-1 C: 'Asf'; Outlook Stable
  GBP44.1 mil. Series 2015-1 D: 'BBBsf'; Outlook Stable
  GBP22.8 mil. Series 2015-1 E: 'BBsf'; Outlook Stable
  GBP15.3 mil. Series 2015-1 F: 'Bsf'; Outlook Stable
  GBP300 mil. Series 2015-VFN: 'BBBsf'; Outlook Stable

  GBP146.7 mil. Series 2015-2 A: 'AAAsf'; Outlook Stable
  GBP21.3 mil. Series 2015-2 B: 'AAsf'; Outlook Stable
  GBP31.5 mil. Series 2015-2 C: 'Asf'; Outlook Stable
  GBP44.1 mil. Series 2015-2 D: 'BBBsf'; Outlook Stable
  GBP22.8 mil. Series 2015-2 E: 'BBsf'; Outlook Stable
  GBP15.6 mil. Series 2015-2 F: 'Bsf'; Outlook Stable

                          KEY RATING DRIVERS

Non-Prime Asset Performance: The charge-off and payment rate
performance of the pools reflects the non-prime nature of the
assets, which is mitigated by available credit enhancement.
Fitch has set a steady state charge-off assumption of 18%, with a
stress on the lower end of the spectrum, due to the high absolute
level of the steady state assumption (3.5x for AAAsf).  Fitch
applied a payment rate steady state assumption of 10%, with a
stress of 45% at 'AAAsf'.  The specific nature of the underlying
receivables means performance is not directly comparable with
prime UK credit card transactions.

Changing Pool Composition: The portfolio consists of an open book
and a closed book, which have displayed different historical
performance trends.  Fitch expects overall pool performance to
migrate towards the performance of the open book, as the closed
book amortizes.  Fitch has built this expectation into its steady
state asset assumptions.

Variable Funding Notes Add Flexibility: In addition to Series
2015-VFN providing the funding flexibility that is typical and
necessary for credit card trusts, the structure employs a
separate Originator VFN, purchased and held by NewDay Funding
Transferor Ltd (the transferor).  This note serves three main
purposes: to provide credit enhancement to the rated notes; to
add protection against dilution by way of a separate functional
transferor interest; and to serve the minimum risk retention

Unrated Originator and Servicer: The NewDay group acts in a
number of capacities through its various entities, most
prominently as originator and servicer, but also as cash manager
to the securitization.  In most other UK trusts these roles are
fulfilled by large institutions with strong credit profiles.  The
degree of reliance in this transaction is mitigated by the
transferability of operations, agreements with established card
service providers, a back-up cash management agreement and a non-
amortising liquidity reserve per series.

Stable Asset Outlook: Despite the slower growth expected in the
UK following the Brexit vote, Fitch's outlook for UK credit cards
remains stable.  Slower growth will have an impact on asset
performance, but based on Fitch's current macro forecast, asset
deterioration should stay within steady-state levels for the


  Rating sensitivity to increased charge-off rate
  Increase base case by 25% / 50% / 75%
  Series 2016-1 A: 'AAsf' / 'A+sf' / 'A-sf'
  Series 2016-1 B: 'A+sf' / 'A sf' / 'A-sf'
  Series 2016-1 C: 'BBB+sf' / 'BBBsf' / 'BBB-sf'
  Series 2016-1 D: 'BB+sf' / 'BB-sf' / 'B+sf'
  Series 2016-1 E: 'B+sf' / NA/ NA
  Series 2016-1 F: NA/ NA/ NA

  Rating sensitivity to reduced MPR
  Reduce base case by 15% / 25% / 35%
  Series 2016-1 A: 'AAsf' / 'A+sf' / 'A-sf'
  Series 2016-1 B: 'A+sf' / 'BBB+sf' / 'BBBsf'
  Series 2016-1 C: 'BBB+sf' / 'BBBsf' / 'BBB-sf'
  Series 2016-1 D: 'BB+sf' / 'BB+sf' / 'BBsf'
  Series 2016-1 E: 'B+sf' / 'B+sf' / 'B+sf'
  Series 2016-1 F: NA/ NA / NA

Rating sensitivity to reduced purchase rate (ie aggregate new
purchases divided by aggregate principal repayments in a given

  Reduce base case by 50% / 75%
  Series 2016-1 A: 'AAAsf' / 'AAAsf'
  Series 2016-1 B: 'AAsf' / 'AAsf'
  Series 2016-1 C: 'Asf' / 'Asf'
  Series 2016-1 D: 'BB+sf' / 'BB+sf'
  Series 2016-1 E: 'Bsf' / NA
  Series 2016-1 F: NA / NA

NEWCASTLE BUILDING: Fitch Affirms Then Withdraws 'BB+' LT IDR
Fitch Ratings has affirmed Newcastle Building Society's (NBS)
Long-Term Issuer Default Rating at 'BB+' with a Stable Outlook,
Short-Term IDR at 'B' and Viability Rating (VR) at 'bb+'. At the
same time, Fitch has withdrawn NBS's ratings.  Fitch has
withdrawn the ratings for commercial reasons.

                        KEY RATING DRIVERS


NBS's IDRs and VR primarily reflect the society's limited
franchise and the concentration of its business on the UK housing
market.  The ratings are also based on low profitability, weak
capital generation and the limited ability to absorb unexpected
losses as a result.  The ratings further consider the society's
healthy asset quality, adequate capitalization, stable funding
and sound liquidity.

Asset quality is healthy, with an impaired loans/gross loans
ratio of 1.8% at end-2015, but lending is concentrated in UK
mortgages. Over recent years asset quality has improved due to
the reduction of impaired loans and conservative provisioning
levels, leading to a reduced tail risk from unreserved impaired
loans.  Fitch considers this to be an important development given
the society's still weak internal capital generation.

NBS maintains a strong appetite for high loan-to-value (LTV)
mortgages, where spreads are higher.  Fitch considers this risk
to be well managed, with all mortgages with an LTV of over 80%
covered by a Mortgage Indemnity Guarantee.  Fitch expects loan-
impairment charges (LICs) to rise, but to be maintained at low
levels due to sound underwriting standards.  The society no
longer has any appetite for commercial loans or lending to
professional buy-to-let investors and both these books are in

The society's member business remains loss-making but losses
continue to narrow.  NBS has generated weak profitability and
capital since the financial crisis as a result of high LICs
related to the society's legacy commercial loans, and its large
stock of low-risk but low-yielding housing association loans.

The recent improvement in profitability has been driven by lower
funding costs and lower LICs.  The latter have been falling since
2012, underpinned by a supportive operating environment, sound
underwriting and deleveraging of legacy commercial loans.
However, underlying profitability is still well below the sector
average. As a result, LICs continue to absorb a much higher
proportion of pre-impairment operating profit than its peers.

As a fee-driven business, NBS's savings management business,
Strategic Solutions, adds diversification to the core member
business.  Although revenue was negatively affected by lower
demand for retail funding in 2014 and 1H15 due to the
availability of the UK government's Funding for Lending Scheme
(FLS), it has recovered, driven by a larger client base and an
increase in deposits as FLS balances reduce.  Fitch expects this
to continue for the full year 2016 due to a strong pipeline of
new business.

Capitalization is adequate for NBS's rating.  Regulatory capital
ratios are in line with higher-rated peers, but Fitch considers
capitalization to be weaker at NBS due to the low absolute size
of capital and weak internal capital generation.  On a non-risk-
weighted basis, the society compares well with peers, with a
reported fully-loaded leverage ratio of 4.5% at end-1H16.  Given
the society's extremely limited access to capital, the society's
capital flexibility will depend on stronger capital generation,
aided by the member business returning to sustainable

Liquidity is sound, although Fitch expects it to gradually reduce
as the balance sheet begins to grow.  High-quality liquid assets
mostly comprise cash at the Bank of England, highly rated RMBS
and covered bonds.  The society also benefits from access to
contingent funding from the Bank of England.  Customer deposits
account for the majority of the society's funding.  The society's
loan-to-deposit ratio is low by sector standards, reflecting its
limited use of wholesale funding and slow loan growth.


NBS's SR and SRF reflect Fitch's view that senior creditors
cannot rely on extraordinary support from the UK authorities in
the event the society becomes non-viable.  In Fitch's opinion,
the UK has implemented legislation and regulations that provide a
framework that is likely to require senior creditors to
participate in losses for resolving NBS.

NBS's subordinated debt is notched down once from the VR for loss

Not applicable.

The rating actions are:

  Long-term IDR affirmed at 'BB+'; Outlook Stable and withdrawn
  Short-term IDR affirmed at 'B' and withdrawn
  Viability Rating affirmed at 'bb+' and withdrawn
  Support Rating affirmed at '5' and withdrawn
  Support Rating Floor affirmed at 'No Floor' and withdrawn
  Subordinated notes affirmed at 'BB' and withdrawn

ROGERS CERAMICS: Undergoes Liquidation, 32 Jobs at Risk
Crawley Observer reports that more than 30 jobs are under threat
after Rogers Ceramics announced it has gone into liquidation.

The firm, which has showrooms in Crawley, Haywards Heath and
Redhill, has been in business for more than 50 years but has now
closed all its stores, Crawley Observer discloses.

According to Crawley Observer, the firm says that it has been hit
by difficult trading conditions, with increased competition from
other suppliers and the internet over recent years.

David Tann -- -- and
Matthew Waghorn -- -- partners
at the Reading office of Chartered Accountants, Wilkins Kennedy
LLP, have been appointed as Administrators, Crawley Observer

There are 32 workers who are at risk of redundancy, Crawley
Observer notes.

Rogers Ceramics is a tile and bathroom retailer.


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

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

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


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

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

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