/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/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 Headlines F R A N C E CROWN EUROPEAN: S&P Rates Proposed EUR310MM Sr. Unsec. Notes 'BB' G E O R G I A PARTNERSHIP FUND: Fitch Affirms 'BB-' IDR, Outlook Stable G E R M A N Y FC BAYERN: Lawyer Urges Munich Court to Liquidate Club G R E E C E GREECE: PM Seeks Speedier Action From Bailout Creditors I R E L A N D GRIFFITH PARK: S&P Assigns B- Rating to Class E Notes HMV GROUP: Workers to Get Redundancy Payments, Minister Says L U X E M B O U R G AVANTOR PERFORMANCE: S&P Affirms 'B' CCR, Outlook Stable MINERVA LUXEMBOURG: Fitch Affirms BB- Rating on Sr. Unsec. Notes N E T H E R L A N D S 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 R O M A N I A 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 ********* =========== F R A N C E =========== 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 default. 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): 30%/45%/25% -- 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 range) -- Remaining value for debentures: $0 -- Unguaranteed debentures: $410 million -- Recovery expectations: 0%-10% Note: All debt amounts above include six months of prepetition interest. *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. RATINGS LIST 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 ============= G E O R G I A ============= 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 mil.). 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. ============= G E R M A N Y ============= 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 it." 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. =========== G R E E C E =========== 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 discloses. ============= I R E L A N D ============= 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 notes. 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. RATINGS LIST 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 report. 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. =================== L U X E M B O U R G =================== 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 stable. 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 revenues. 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. LIQUIDITY 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. FULL LIST OF RATING ACTIONS Fitch has taken these actions on Minerva: 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)'. ===================== N E T H E R L A N D S ===================== 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 Europe. 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 ratings: 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 32.6. 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 into. Documentation Amendments The transaction documents may be amended subject to rating agency confirmation or noteholder approval. Where rating agency confirmation relates to risk factors, Fitch will 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 maturity. If in the agency's opinion the amendment is risk-neutral from a rating perspective Fitch may decline to comment. Noteholders should be aware that the structure considers the confirmation to be given if Fitch declines to comment. RATING SENSITIVITIES A 25% increase in the obligor default probability would lead to a downgrade of up to two notches for the rated notes. A 25% reduction in expected recovery rates would lead to a downgrade of up to three notches for the rated notes. 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 (AA-/Stable/F1+). 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. ============= R O M A N I A ============= 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 -- tom@keenancf.com -- and Scott Murray -- scott@keenancf.com -- 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 recounts. 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. relays. 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 Liquidity 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 2.6x. 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 requirements. 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 trust. RATING SENSITIVITIES 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 month) 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 IDRS, VR AND SENIOR DEBT 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 run-off. 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 profitability. 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. SUPPORT RATING (SR) AND SUPPORT RATING FLOOR (SRF) 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. SUBORDINATED DEBT AND OTHER HYBRID SECURITIES NBS's subordinated debt is notched down once from the VR for loss severity. RATING SENSITIVITIES 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 -- david.tann@wilkinskennedy.com -- and Matthew Waghorn -- matthew.waghorn@wilkinskennedy.com -- partners at the Reading office of Chartered Accountants, Wilkins Kennedy LLP, have been appointed as Administrators, Crawley Observer relates. 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 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 * * *