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        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, October 11, 2016, Vol. 17, No. 201


                            Headlines


A Z E R B A I J A N

AZERBAIJAN MORTGAGE: Fitch Will Rate Mortgage Fund Upon Completed


B E L A R U S

BELARUS REPUBLIC: S&P Affirms 'B-/B' Sovereign Credit Ratings
BELARUSBANK: Fitch Says Bank Review Confirms Bank Credit Weakness


F R A N C E

LION/SENECA: Fitch Affirms 'B' LT Issuer Default Rating
PHOTONIS TECHNOLOGIES: Moody's Affirms B2 CFR, Outlook Negative


G E R M A N Y

DEUTSCHE BANK: To Eliminate 1,000 Full-Time Jobs in Germany


I R E L A N D

CORDATUS LOAN II: Moody's Affirms B2 Ratings on 2 Note Classes


N E T H E R L A N D S

JUBILEE CDO VIII: Fitch Hikes Class E Notes Rating to 'B+sf'


R O M A N I A

ELCEN: Bucharest Court Approves Insolvency Request


R U S S I A

CB ALTA-BANK: Liabilities Exceed Assets, Assessment Shows
CB RAZVITIE: Put on Provisional Administration on October 10
PROMSVYAZBANK PJSC: S&P Assigns 'BB-' Rating to Sr. Unsec. Loan
RUSAL PLC: Moody's Assigns Ba3 CFR, Outlook Stable


S P A I N

IM CAJAMAR 4: Fitch Puts BBsf Rating on Series D Tranche on RWN


T U R K E Y

HABAS SINAI: Fitch Withdraws 'B+' LT Issuer Default Ratings


U N I T E D   K I N G D O M

ABJ TRADING: Brazilian Case Recognized as Foreign Main Proceeding
ED'S EASY DINER: Sale Via Pre-Pack Administration Likely
MONARCH AIRLINES: Financial Lifeline Expected This Week
* UK: Scottish Business Failures Up 30% to 230, KPMG Says


                            *********


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A Z E R B A I J A N
===================


AZERBAIJAN MORTGAGE: Fitch Will Rate Mortgage Fund Upon Completed
-----------------------------------------------------------------
Fitch Ratings says it will shortly assign ratings to OJSC
Azerbaijan Mortgage Fund (OJSC AMF), which is a legal successor of
Azerbaijan Mortgage Fund under the Central Bank of Azerbaijan
Republic (AMF). Fitch said, "We will simultaneously withdraw AMF's
ratings once its restructuring is complete."

Fitch expects AMF will soon finalize its restructuring process,
which started on October 27, 2015, when the President of
Azerbaijan signed a decree establishing the OJSC AMF. AMF is being
reorganized into an open joint stock company, which is fully owned
by the state. The charter of the new entity was registered in June
2016. At end-September 2016, OJSC AMF registered issue of shares,
1008% of which are held by the state.

AMF's ratings are equalized with Azerbaijan's sovereign ratings
(BB+/Negative), reflecting the entity's public sector status, its
tight control by the sovereign and its important role in the
government's housing finance policy. Fitch uses its public-sector
entities rating criteria to rate AMF, which it views as a
credit-linked entity.

AMF is a state institution that was established under the decree
of the President of the Republic of Azerbaijan in September 2005.
The entity acts as the government's agent in implementing the
state's social housing programs and supports provision of dwelling
space to Azerbaijani citizens through long-term mortgage loans.
AMF also contributes to the stability and development of
Azerbaijan's financial sector by refinancing mortgage loans of
commercial banks and issuing mortgage-backed securities.

On March 2, 2016, Fitch downgraded AMF's Long-Term Foreign and
Local Currency Issuer Default Ratings to 'BB+' from 'BBB-'
following the downgrade of the sovereign. The Negative Outlook
reflects that on the sovereign.



=============
B E L A R U S
=============


BELARUS REPUBLIC: S&P Affirms 'B-/B' Sovereign Credit Ratings
-------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' long-term and 'B' short-term
sovereign credit ratings on the Republic of Belarus.  The outlook
is stable.

                             RATIONALE

The ratings are constrained by S&P's view of Belarus' low
institutional predictability and effectiveness, weak external
position, and ineffective monetary policies.  The ratings are
supported by headline fiscal surpluses as well as a strong track
record of financial support from the Russian Federation.

The country's external position remains its key vulnerability.
Despite ongoing current account adjustments, due to lower imports
(which fell by over 40% in 2015 and the first half of 2016)
following the depreciation of the Belarusian ruble, the country's
dependence on external financing is very high.  Belarus' gross
external financing needs will likely account for over 150% of
current account receipts (CARs) plus usable reserves, on average,
in 2016-2019.  In addition to current account payments, over one-
third of the country's external refinancing needs comprise
external debt service, including that of the government.  Despite
Russia's waiver of duties on refined oil products, representing
about 1% of GDP (which Belarus had previously paid to Russia), S&P
forecasts that, in the longer term, economic recovery and growing
consumption will likely widen the current account deficit to an
average 4.5% of GDP in 2017-2019 from 3.8% of GDP in 2015-2016.
Absent a significant pickup of net foreign direct investment
(FDI), this will keep Belarus' external debt, net of financial and
public-sector external assets (that is, narrow net external debt,
S&P's preferred measure of external debt) above the sum of its
CARs and usable reserves in 2016-2019.  On the down side, the
government's ongoing dispute with Russia over renegotiating gas
prices has led it to accumulate about $300 million of accounts
payable in the first half of 2016.  Although some or all of the
amount may be recouped in future lower gas imports, it is still a
claim on Belarus' balance of payments.

S&P believes that Belarus' gross external funding requirement of
about $17 billion this year and next is likely to be covered by a
combination of FDI, official and other loans, and rollover of most
of its short-term external debt.  The Eurasian Fund for
Stabilization and Development (formerly the EurAsEC Anti-Crisis
Fund, which is sourced through direct charges to its members'
budgets, principally Russia's) has provided Belarus with a
$2 billion financing facility and disbursed $0.8 billion of it in
June-August 2016.  Most of Belarus' official and private-sector
liabilities are to Russia.

In addition, Belarus may conclude negotiations with the
International Monetary Fund (IMF) for a financing program of up to
$3 billion, with an initial tranche potentially being disbursed
this year.  The IMF has said such a program would require "strong
commitment at the highest level to consistent macroeconomic
policies and deep, market-oriented reforms."  Such reforms could
include further hikes in utility tarriffs and the restructuring of
public-sector enterprises through retrenchment and privatization,
both of which could prove politically challenging.

In addition to these external sources of financing, Belarus has
$4.7 billion (about 40% of short-term external debt) of gross
international reserves, a figure that has held steady this year
after a decline in 2015.  Of this amount, approximately
$1.7 billion is held in gold and about $2 billion stems from
short-term foreign currency bonds held by domestic banks.  S&P
deducts the latter figure from gross reserves when calculating
central bank usable reserves, according to S&P's criteria.

On the fiscal side, the reported general government balance has
been strong, showing moderate surpluses since 2011.  Given the
general government budget surplus of 2.5% of GDP reported in the
first eight months of 2016, S&P forecasts that the government will
remain in surplus through to year-end 2017, thanks to export
taxes, mainly on potash and crude oil, as well as Belarus' track
record of implementing cost-containment measures.  Although the
government has formulated a debt management guideline imposing a
ceiling of government debt at 45% of GDP, S&P sees risks to the
fiscal profile coming from high government debt denominated in
foreign currency and from contingent fiscal claims stemming from
the weak public-enterprise sector.  Thus, even with the headline
surpluses, S&P expects general government debt will increase
annually by 4% versus GDP on average through to 2019.  In 2015,
for example, the government injected about $0.7 billion in the
form of government debt into a number of public enterprises
(including those in timber processing) to allow them to repay bank
loans obtained under government guarantees.  Poor performance of
state-owned enterprises and an increasing amount of nonperforming
loans (NPLs)in the banking sector, over half of which are exposed
to the public sector, will put increasing pressure on the
government's fiscal position, in S&P's view.

Further weakening of the domestic currency and materialization of
contingent liabilities will push net general government debt (net
of liquid assets) up to 42% of GDP in 2016, in S&P's projections,
from an average of 28% of GDP in 2013-2015.  S&P incorporates into
its assessment fiscal vulnerabilities linked to about 90% of
government debt denominated in foreign currency, the relatively
short-term maturity profile of domestic government debt, and the
contingent liabilities posed by the state-dominated banking system
and its directed lending activity.

S&P thinks that the announced and so far implemented changes to
monetary policy, such as the shift to a more flexible exchange
rate, could increase the National Bank of the Republic of Belarus
(NBRB)'s flexibility to respond to domestic financial conditions.
However, annual inflation averaged over 30% in 2011-2015, which
weighs on S&P's assessment of the NBRB's credibility and
effectiveness.  In the context of currency depreciation and
administrative price liberalization, inflation is likely to stay
in the double digits in the next few years, although S&P expects a
sizable decline to about 12% in 2016 from 18% in 2014, owing to
weak domestic demand.

In addition, in line with directed lending, high dollarization of
loans and deposits in the banking system weakens S&P's assessment
of Belarus' monetary policy transmission mechanisms.  The share of
dollar-denominated loans and deposits exceeded 65% of the total at
year-end 2015.  Lending in foreign currency heightens the banking
system's exposure to exchange-rate risk and will likely increase
the country's contingent liabilities, particularly in light of
ongoing deterioration of asset quality.  The size of reported NPLs
has almost doubled to 14.3% of gross loans by July 2016 compared
with a year ago, with provisioning remaining relatively low.
These NPLs come principally from the underperforming public-
enterprise sector, which has traditionally benefited from directed
lending in the past.  NPLs could have been even higher had the
state not taken some of those assets onto its balance sheet in
2015.

Belarus' economic prospects will likely be depressed and weaker
than similarly rated peers' in the next few years.  The weak
external environment (chiefly the recessions in Russia and
Ukraine) and declining domestic purchasing power, as a result of
the Belarusian ruble's depreciation and high inflation, will
result in a real GDP decline of about 2.7% in 2016, according to
S&P's projections.  S&P believes that, without greater progress on
structural reforms, GDP growth rates will remain lackluster in the
longer term, with average growth rates likely fluctuating close to
1% on average through to year-end 2019.

President Alexander Lukashenko was re-elected in 2015 and controls
the government's branches of power, in S&P's view.  The
president's administration sets all strategic decisions and the
policy agenda, whereas the government is a technocratic body that
implements decisions.  Thus S&P detects few checks and balances in
Belarus' institutional arrangements.  Belarus also depends heavily
on Russia for financial, economic, and political support, which
S&P finds carries attendant risks.  That said, Belarus' past
policies have delivered some results, as shown by Belarus' high
ranking on the U.N.'s Human Development Index (at No. 50, out of
188 countries in 2015).

                              OUTLOOK

The stable outlook indicates that there is a less than one-in-
three probability that S&P will raise or lower its ratings on
Belarus in the next 12 months.

S&P could consider a negative rating action if the government's
ongoing adjustment program was derailed or S&P perceived Russia as
less willing to provide financial support to Belarus.  This could
be signalled by unsuccessful resolution of the ongoing gas price
dispute, or delays in Belarus receiving support.  Rating pressure
could also develop if material contingent fiscal risks from the
banking or public sector were to crystallize.

S&P could consider an upgrade if Belarus implemented a robust
reform program that targets a reduction of the country's external
vulnerabilities, places its public enterprises on a sounder
commercial footing, and seeks to permanently boost the GDP growth
rate.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable.  At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee by
the primary analyst had been distributed in a timely manner and
was sufficient for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee agreed that all other key rating factors were
unchanged.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion.  The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook.  The weighting of all rating
factors is described in the methodology used in this rating
action.

RATINGS LIST

                                        Rating
                                        To            From
Belarus (Republic of)
Sovereign Credit Rating
  Foreign and Local Currency            B-/Stable/B   B-/Stable/B
Transfer & Convertibility Assessment   B-            B-
Senior Unsecured
  Foreign and Local Currency            B-            B-


BELARUSBANK: Fitch Says Bank Review Confirms Bank Credit Weakness
-----------------------------------------------------------------
Results of the asset-quality review (AQR) published by the
National Bank of Belarus last month confirm that, under stress,
the capital adequacy ratios of many of the country's banks do not
hold up well, says Fitch Ratings.

The banks are highly exposed to a downturn in the operating
environment, such as economic slowdown and exchange-rate weakness.
Fitch said, "We forecast that GDP in Belarus will contract by 2%
in 2016, following a contraction of 3.9% in 2015." The
depreciation of the Belarusian rouble against the US dollar has
been significant: 8% in 1H16, following a steep 56% fall in 2015.

Asset quality in the banking sector is deteriorating rapidly.
Regulatory returns show that the three riskiest categories of non-
performing assets more than doubled to 14.8% of gross credit
exposure at end-August 2016 from 6.8% at end-2015. Loan-loss
cover, at 38%, is low, exposing the banks to sizeable unexpected
losses.

Under the AQR's stress scenario, the sector's regulatory capital
adequacy ratio would fall to 10.8% at end-July, which only just
meets the 10.625% regulatory minimum, although this is set to rise
to 11.25% in 2017, and is far lower than the actual 17.1% reported
ratio. Stress assumptions were not disclosed which means the AQR
outputs have little value to investors and creditors.

"We believe the AQR was based on end-2015 balance sheets, which
were still not showing high levels of NPLs. Our own stress test
assumes a further 30% increase in non-performing loans from end-
1H16 levels and improved loan-loss cover to 80%. Under this
scenario, the banking sector would have lost 42% of its end-1H16
regulatory capital." Fitch said.

Belarusbank, Belarus' largest bank, which represents 41% of sector
assets, performed relatively well in the central bank's AQR. Under
stress, its capital ratio fell only moderately to 17.5% against a
reported 18.8% at end-July. A large proportion of the bank's loans
are extended to borrowers which benefit from government support,
either in the form of subsidized interest payments or loan
repayments under state guarantees. This, coupled with the bank's
already high loan-loss cover ratios, explains its more resilient
capital ratios.

Five foreign-owned banks, representing 27% of sector assets and
mostly controlled by Russian shareholders, were also reported to
have passed the AQR. However, details of the AQR impact on their
capital ratios were not published, making it difficult to assess
their potential capital weaknesses.

Two state-owned banks, Belinvestbank and Belagroprombank,
representing 21% of sector assets, and Russian-owned Alfa Bank (2%
of sector assets) fell below regulatory minimum levels under the
stress assumptions. But the regulator does not view these banks as
"problem entities" because they are implementing remedial
strategies, including recapitalizations and problem asset
transfers (in case of state-owned banks).

Fitch believes this initial review is an important step to ensure
that the regulator adopts a forward-looking approach in its
supervision of the banking sector. Fitch said, "We understand the
authorities intend to incorporate the AQR findings into their
risk-management framework, which should help boost capital
requirements and address some of the banking sector's
vulnerabilities."

Existing weaknesses are already factored into our bank ratings.
Fitch said, "We rate six banks in Belarus at 'B-'/Stable,
highlighting that material default risk is present, but that a
limited margin of safety remains."



===========
F R A N C E
===========


LION/SENECA: Fitch Affirms 'B' LT Issuer Default Rating
-------------------------------------------------------
Ratings has affirmed France-based optical retailer Lion/Seneca
France 2 S.A.S.'s (Afflelou) Long-Term Issuer Default Rating (IDR)
at 'B'. The Outlook is Stable.

Fitch has also affirmed 3AB Optique Developpement S.A.S.'s EUR365
million senior secured notes due 2019 and super senior revolving
credit facility (RCF) ratings at 'BB-'/'RR2' and Lion/Seneca
France 2 S.A.S.'s EUR75 million senior notes due 2019 rating at
'CCC+'/'RR6'.

The rating affirmation reflects Afflelou's robust business and
steadily improving cash-flow generation. New business volumes
brought by cooperation with closed networks should benefit
Afflelou's store network leading to stronger earnings and cash
flows. The credit metrics are weak for a 'B' rating, though still
adequate given the temporary nature of the most recent earnings
volatility due to the business model being in transition.
Furthermore, as a health-care credit Afflelou faces little price
risk as long as the French reimbursement policy remains favorable,
while volume risks are evidently being successfully addressed
through the cooperation with selected national care networks.

KEY RATING DRIVERS

Successful Migration to Closed Networks

A strategy revision launched in 2014 towards cooperation with
closed networks is beginning to bear fruit, which is evidenced in
the reversal of the decline in like-for-like sales and the
accelerated store network activity. As the company assists its
stores in entering additional care networks, Fitch expects its
impact to last well into the financial year ending July 2017
(FY17), leading to an increase in store network sales as well as
Afflelou's franchisor fees, with the latter linked to the
underlying store activity.

"We have therefore raised our overall top-line growth forecast to
13% for FY16 and 5% for FY17, followed by flattening growth
thereafter of 2%-3% as the company should have booked the
contribution from the currently known targeted closed networks by
then," Fitch said.

Operating Margins to Remain Flat

The price-conscious nature of care networks, whereby participating
opticians are required to work with selected suppliers and adhere
to product offerings and promotional activities, is likely to
constrain profitability expansion for Afflelou. Fitch said, "In
particular, we project group gross margin below the prior years'
level, at 47% as the company is aligning its supplier
relationships and operational policies with the care networks
requirements, leading to a sustained EBITDA margin of 20%-21%%
over the rating horizon."

"We also point to some margin upside potential from the reduction
in the number of directly owned stores (DOSs), improving
Afflelou's operating leverage and minimizing losses. However, we
believe that the reduction in DOSs will be slow, and therefore do
not anticipate any meaningful profitability improvement as a
result," Fitch said.

Healthy Cash-Flow Profile

New business volumes brought by the care networks should help
restore funds from operations (FFO) to a sustainable EUR40 million
to 45 million after a slump in FFO to EUR33 million in FY15. Fitch
said, "Notwithstanding the projected trade working-capital outflow
due to changes in the supply chain in FY16 of EUR9m, we assume the
company will generate consistently positive free cash flows (FCF)
with FCF margin increasing towards 9% by FY18. We estimate FCF
will be sufficient to easily accommodate bolt-on acquisitions and
allow for an uninterrupted accumulation of cash reserves."

Weak Credit Metrics to Improve

Based on Fitch's assessment of Afflelou's sustainable cash-flow
profile, its credit metrics, most notably, FFO adjusted leverage
and FFO fixed charge cover, are weak for its 'B' IDR. Fitch said,
"Leverage ratios of 7.8x and 7.3x in FY15-16 are high, but we view
the levels as temporary while the company is redirecting its
business model towards national care networks. Stronger earnings
and cash flows should contribute to bringing the leverage below
7.0x by FY17, a level we consider appropriate for the rating given
the dominant health-care component in Afflelou's business model,
and to a smaller extent, its exposure to conventional retail
risks."

Superior Recoveries for Senior Secured Creditors

"We use the going-concern approach in our recovery analysis given
Afflelou's asset-light business model. After application of an
unchanged discount of 15% to FY16E EBITDA of EUR71m, and a
distressed EV/EBITDA multiple of 5.5x, we estimate a superior
recovery for super senior RCF lenders and senior secured
noteholders in 'RR2' resulting in 'BB'/RR2/90% (capped at 90% due
to French jurisdiction) for super senior RCF and 'BB-'/RR2/72% for
senior secured bond," Fitch said.

Investors in the senior notes, being structurally and
contractually subordinated to the senior secured debt class, would
have no recoveries in a hypothetical distress scenario resulting
in an instrument rating of 'CCC+'/RR6/0%.

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for Afflelou
include

   -- sales growth of 13% in FY16 and 5% in FY17 based on interim
      trading and near-term entry into additional closed
      networks, followed by 2%-3% of top line growth thereafter;

   -- EBITDA margin at 20%-21%;

   -- trade working-capital outflow of EUR8.5 million in FY16
      linked to supply chain optimization, followed by annual cash
      outflow of below EUR1 million as working-capital levels
      normalize from FY17;

   -- capex at 3% of sales;

   -- bolt-on acquisitions of EUR7.5 million offset by asset and
      store disposal of EUR10 million in FY16; further bolt-on
      acquisitions of EUR5 million per year in FY17-18.

RATING SENSITIVITIES

Negative: Future developments that may, individually or
collectively, lead to the IDR being downgraded, include:

   -- Deterioration of EBITDA and FCF margins, for example as a
      result of continued weak network activity, negative like-
      for-like sales growth resulting from increased competitive
      pressures, the impact of regulatory changes, adverse
      supplier mix changes or further material increase of the
      DOS segment.

   -- FFO adjusted leverage above 7x or no evidence of
      deleveraging, for example because of operating
      underperformance or ongoing debt-funded acquisition
      activity.

   -- FFO fixed charge cover of 1.8x or below.

Positive: Future developments that may, individually or
collectively, lead to the IDR being upgraded, include:

   -- Steady network activity, for example as a result of
      successful cooperation with national care networks, leading
      to improving sales and EBITDA margins, and no negative
      impact from regulatory changes;

   -- At least mid-single digit FCF margins sustainably;

   -- FFO adjusted leverage improving towards 5.5x;

   -- FFO fixed charge cover improving towards 2.5x.

LIQUIDITY

Comfortable Liquidity Position

"We project Afflelou will generate FCF of EUR18m in FY16 and
around EUR30m per year thereafter, leading to accumulation of
liquidity reserves in excess of EUR100m by FYE18," Fitch said.
This robust internal liquidity should comfortably accommodate
bolt-on acquisitions of up to EUR10m per year, without
compromising Afflelou's liquidity position and credit quality. It
also has a committed RCF of EUR30m available until November 2018,
which was fully undrawn at the end of April 2016.

Sufficient Maturity Headroom

In the absence of any committed debt amortizations, the company
has sufficient refinancing headroom until the maturity of its
notes in April 2019. As publicly stated by the company, Afflelou
may partly or fully redeem its public debt ahead of the scheduled
maturity. Since the timing and magnitude of these debt repurchases
are unknown, the current rating assumes the notes will be
refinanced or repaid only prior to their final maturity date.


PHOTONIS TECHNOLOGIES: Moody's Affirms B2 CFR, Outlook Negative
---------------------------------------------------------------
Moody's Investors Service has changed the outlook on all of
Photonis Technologies SAS ratings to negative from stable.
Concurrently, Moody's affirmed the B2 corporate family rating
(CFR), B2-PD probability of default rating (PDR) and B2 instrument
rating on the senior secured term loans and Ba2 instrument rating
on the super senior revolving credit facility.

                        RATINGS RATIONALE

The change in outlook reflects Moody's expectation that leverage
could remain high at the end of 2016 and above Moody's leverage
guidance for the rating of 5x Moody's-adjusted gross debt/EBITDA.
Company-reported EBITDA in the first half of 2016 was 25% below
last year and while Moody's still expects Photonis to achieve full
year EBITDA near last year's level, any deleveraging from the 5.9x
gross leverage level at year-end 2015 will be more challenging to
achieve now.  Moody's notes that the crucial quarter for Photonis
is typically Q4, in which the company generated 42% of EBITDA in
2015.

EBITDA generation in the first half of 2016 was held back by mix
effect, such as higher sales of lower priced products, slightly
lower volume sales while production continued and also from higher
costs following the strengthening of its presence in the US last
year.  FX effects given the stronger US dollar also negatively
impacted costs.  However, despite these developments revenue
remained largely flat in the first half of 2016 relative to the
prior year also helped by some contribution from Large Programs
(include broader co-operations beyond tube sales), which should
also support full year performance together with the full year's
contributions of last year's acquisitions.  While Moody's
currently expects the situation to normalize in the second half of
2016, the weaker than expected performance at EBITDA level in the
first half indicates that any deleveraging from last year's levels
will be more challenging now to achieve in 2016.

Leverage has also negatively been impacted by the strengthening US
dollar.  This was partly mitigated by the company's hedging
arrangements in the past as Moody's deducted the value of the
swaps from Moody's-adjusted gross leverage.  However, these
arrangements expired in September 2016 with a corresponding EUR25
million of cash proceeds.  While Moody's expects the company to
apply at least 75% of those proceeds towards debt repayment as
part of its annual excess cash flow repayment requirement under
the debt documentation, any other use of (partial) proceeds other
than debt reduction would increase gross leverage and hence weigh
on the rating.  Moreover, with any repayment likely to occur in
2017, year-end gross leverage for 2016 could exceed 6x.  Moody's
would also expect the company to enter into new and equivalent
hedging arrangements to protect against future currency movements.

Moody's views Photonis' liquidity as good.  As of June 2016,
Photonis had EUR6.4 million in cash on the balance sheet and
access to an undrawn EUR30 million revolving credit facility due
in 2018.  The facility carries one financial maintenance covenant,
a net first lien leverage ratio, with low covenant headroom
currently, but the receipt of the cash from the swaps could
improve headroom.  In any case, the covenant will only be
triggered if at least 25% of the revolver is drawn.  The company
used EUR9.2 million of cash in 2016 to pay the excess cash flow
sweep required under the facilities agreement.  Moody's currently
expects the company to remain free cash flow positive (after
interest) in 2016.

Factors that Could Lead to a Downgrade/Upgrade

The CFR is weakly positioned at B2.  Negative rating pressure
could increase if debt/EBITDA remains above 5.0x in 2016 and into
2017 or if EBIT/interest remains close to 1.0x, both as adjusted
by Moody's.  It would also be negative if the company decides to
not make substantial payments to reduce debt in early 2017 at the
latest, as currently anticipated by Moody's.  A decline in demand
for Photonis' night vision equipment, measured as a visible
reduction in order intakes, volumes or EBITDA in 2016, could also
exert negative pressure on the rating.  In addition, free cash
flow generation turning negative and a deterioration in the
company's liquidity profile could result in negative rating
pressure.  While positive rating pressure is unlikely in the near-
term given the negative outlook, increasing diversification in
Photonis' product portfolio and/or end markets, potentially away
from defense applications could lead to positive rating pressure
over time.  In addition visible deleveraging, for example from
revenue and EBITDA growth, so that debt/EBITDA falls towards 4x as
adjusted by Moody's could lead to positive rating pressure over
time.

The principal methodology used in these ratings was Global
Aerospace and Defense Industry published in April 2014.

France-based Photonis Technologies SAS is a manufacturer of
electro-optic components used in military night vision and
industry & science applications.  The company's products are key
components of military night vision equipment based on image
intensification technology and its Night Vision segment's revenues
represented 75% of total revenues in 2015.  The Industry & Science
(18%) and Power Tubes (7%) segments leverage Photonis' know-how in
terms of alternative civil and military uses for the technology,
including for nuclear sensors or mass spectrometry.  As of
December 2015, the company generated EUR153 million in revenues
and EUR48 million in company-adjusted EBITDA.  Photonis was
acquired by ARDIAN (former Axa Private Equity) in 2011.



=============
G E R M A N Y
=============


DEUTSCHE BANK: To Eliminate 1,000 Full-Time Jobs in Germany
-----------------------------------------------------------
Chad Bray at The New York Times reports that Deutsche Bank said on
Oct. 6 that it would eliminate 1,000 full-time positions in
Germany as part of job cuts the embattled lender first announced
last year.

The announcement comes with Deutsche Bank facing a series of
challenges, The Times notes.  Its shares have plunged more than
50% in the last year over concerns about the pace of attempts to
turn business around after a run of poor financial results and a
failing grade in a banking stress test in June, The Times
recounts.

More recently, investors have fretted over whether the bank,
Germany's largest, will be forced to pay billions of dollars in
fines in connection with an investigation by the United States
Department of Justice into residential mortgage-backed securities
underwritten by the bank, The Times relates.

According to The Times, Deutsche, which is based in Frankfurt,
said it had reached an agreement with employee representatives to
cut 1,000 jobs in Germany, on top of 3,000 cuts agreed to in June.

The latest cuts are part of an aggressive plan announced last year
by John Cryan, Deutsche's chief executive, to overhaul the lender
and eliminate as many as 35,000 jobs through internal cuts and the
sale of businesses, The Times states.  The bank will eliminate
about 9,000 full-time jobs and about 6,000 external contractor
positions, The Times says.

Deutsche Bank is a German global banking and financial services
company with its headquarters in the Deutsche Bank Twin Towers in
Frankfurt.  The bank offers financial products and services for
corporate and institutional clients along with private and
business clients.



=============
I R E L A N D
=============


CORDATUS LOAN II: Moody's Affirms B2 Ratings on 2 Note Classes
--------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on these notes
issued by Cordatus Loan Fund II P.L.C.:

  EUR38.7 mil. Class B Deferrable Secured Floating Rate Notes due
   2024, Upgraded to Aa1 (sf); previously on Aug. 28, 2014,
   Upgraded to Aa2 (sf)

  EUR28.35 mil. Class C Deferrable Secured Floating Rate Notes
   due 2024, Upgraded to A2 (sf); previously on Aug. 28, 2014,
   Upgraded to A3 (sf)

Moody's also affirmed the ratings on these otes issued by Cordatus
Loan Fund II P.L.C.:

  EUR101.25 mil. (current balance approximately:
   EUR75,613,142.61) Senior Secured Floating Rate Variable
   Funding Notes due 2024, Affirmed Aaa (sf); previously on
   Aug. 28, 2014, Affirmed Aaa (sf)

  EUR97.5 mil. (current balance: EUR48,407,844.46) Euro Class A1
   Senior Secured Floating Rate Term Notes due 2024, Affirmed
   Aaa (sf); previously on Aug. 28, 2014, Affirmed Aaa (sf)

  EUR60 mil. (current balance: EUR29,789,442.74) Euro Class A1
   Senior Secured Floating Rate Delayed Draw Notes due 2024,
   Affirmed Aaa (sf); previously on Aug. 28, 2014, Affirmed
   Aaa (sf)

  GBP22.83 mil. (current balance: GBP18,689,630.72) Sterling
   Class A2 Senior Secured Floating Rate Notes due 2024, Affirmed
   Aaa (sf); previously on Aug. 28, 2014, Affirmed Aaa (sf)

  EUR27 mil. Class D Deferrable Secured Floating Rate Notes due
   2024, Affirmed Ba1 (sf); previously on Aug. 28, 2014, Upgraded
   to Ba1 (sf)

  EUR16.2 mil. Class E Deferrable Secured Floating Rate Notes due
   2024, Affirmed B1 (sf); previously on Aug. 28, 2014, Affirmed
   B1 (sf)

  EUR5.5 mil. Class F1 Deferrable Secured Floating Rate Notes due
   2024, Affirmed B2 (sf); previously on Aug. 28, 2014, Affirmed
   B2 (sf)

  EUR1.25 mil. Class F2 Deferrable Secured Floating Rate Notes
   due 2024, Affirmed B2 (sf); previously on Aug. 28, 2014,
   Affirmed B2 (sf)

Cordatus Loan Fund II P.L.C., issued in July 2007, is a
collateralised loan obligation backed by a portfolio of mostly
high yield European loans.  It is predominantly composed of senior
secured loans.  The portfolio is managed by CVC Cordatus Group
Limited.  The transaction's reinvestment period ended in July
2014.

                          RATINGS RATIONALE

The rating upgrades of the notes are primarily a result of the
partial redemption of the Senior Notes and subsequent increases of
the overcollateralization ratios of all classes of notes.  Moody's
notes that the Senior Notes have partially redeemed by
approximately EUR82.1 million (or 32% of their original balance)
including EUR46.3 million at the last payment date in July 2016.
As a result of the deleveraging the OC ratios of the remaining
classes of notes have increased.  According to the August 2016
trustee report, the Senior Notes and classes B, C, D, E and F OC
ratios are 183.33%, 150.38%, 132.89%, 119.63%, 112.88% and 110.28%
respectively compared to levels just prior to the payment date in
July 2016 of 166.24%, 141.58%, 127.70%, 116.80%, 111.11% and
108.90%.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.  In its base
case, Moody's analyzed the underlying collateral pool as having a
performing par and principal proceeds balance of EUR230.8 million
and GBP83.3 million, a weighted average default probability of
20.0% (consistent with a WARF of 3155 and a weighted average life
of 3.49 years), a weighted average recovery rate upon default of
42.50% for a Aaa liability target rating, a diversity score of 29.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool.  The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool.  Moody's generally applies recovery rates
for CLO securities as published in "Moody's Approach to Rating SF
CDOs".  In some cases, alternative recovery assumptions may be
considered based on the specifics of the analysis of the CLO
transaction.  In each case, historical and market performance and
a collateral manager's latitude to trade collateral are also
relevant factors.  Moody's incorporates these default and recovery
characteristics of the collateral pool into its cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analyzing.

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.

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

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it lowered the weighted average recovery rate by 5
percentage points; the model generated outputs that were in line
with the base-case results for the Senior Notes and within a notch
for classes B, C, D, E and F.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
note, in light of uncertainty about credit conditions in the
general economy.  CLO notes' performance may also be impacted
either positively or negatively by 1) the manager's investment
strategy and behavior and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties because of embedded ambiguities.

Additional uncertainty about performance is due to:

  Portfolio amortization: The main source of uncertainty in this
   transaction is the pace of amortization of the underlying
   portfolio, which can vary significantly depending on market
   conditions and have a significant impact on the notes'
   ratings. Amortization could accelerate as a consequence of
   high loan prepayment levels or collateral sales by the
   collateral manager or be delayed by an increase in loan
   amend-and-extend restructurings.  Fast amortization would
   usually benefit the ratings of the notes beginning with the
   notes having the highest prepayment priority.

  Around 8.69% of the collateral pool consists of debt
   obligations whose credit quality Moody's has assessed by using
   credit estimates.  As part of its base case, Moody's has
   stressed large concentrations of single obligors bearing a
   credit estimate as described in "Updated Approach to the Usage
   of Credit Estimates in Rated Transactions", published in
   October 2009 and available at:

    http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_120461

  Foreign currency exposure: The deal has significant exposures
   to non-EUR denominated assets.  Volatility in foreign exchange
   rates will have a direct impact on interest and principal
   proceeds available to the transaction, which can affect the
   expected loss of rated tranches.

In addition to the quantitative factors that Moody's explicitly
modeled, qualitative factors are part of the rating committee's
considerations.  These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio.  All information available to
rating committees, including macroeconomic forecasts, input from
other Moody's analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision.



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


JUBILEE CDO VIII: Fitch Hikes Class E Notes Rating to 'B+sf'
------------------------------------------------------------
Fitch Ratings has upgraded Jubilee CDO VIII B.V. as follows:

   -- Class A-1 (ISIN XS0331559640): affirmed at 'AAAsf'; Outlook
      Stable

   -- Class A-2 (ISIN XS0331560572): affirmed at 'AAAsf'; Outlook
      Stable

   -- Class B (ISIN XS0331560655): upgraded to 'A+sf' from at
      'Asf'; Outlook Stable

   -- Class C (ISIN XS0331560903): upgraded to 'BBB+sf' from
      'BBBsf'; Outlook Positive

   -- Class D (ISIN XS0331561208): upgraded to 'BB+sf' from
      'BBsf'; Outlook Stable

   -- Class E (ISIN XS0331561463): upgraded to 'B+sf' from
      'B-sf'; Outlook Stable

Jubilee CDO VIII B.V. is a securitization of mainly European
senior secured loans, senior unsecured loans, second-lien loans,
mezzanine obligations and high-yield bonds. The portfolio is
actively managed by Alcentra Ltd.

KEY RATING DRIVERS

The upgrades reflect the increase in credit enhancement (CE)
across the capital structure due to the deleveraging of the
transaction. The Positive Outlook on the class C notes reflects
potential further upgrades if deleveraging continues at the
current rapid pace.

The senior class A-1 notes have paid down by EUR75.6m over the
past 12 months and CE has increased for all rated notes: for the
class A-1 notes to 82.4% from 62.2%, for the class A-2 notes to
69.7% from 52.9%, for the B notes to 47.5% from 36.6%, for the
class C notes to 36.9% from 28.9%, for the class D notes to 27.4%
from 21.9% and for the class E notes to 18.9% from 15.7%.

The transaction is increasingly exposed to high obligor
concentration risk with the largest and top 10 obligors
representing 6.7% and 50.6%, respectively, as of the September
2016 investor report, up from 4.9% and 40.2% 12 months ago. The
senior notes benefit from large CE and are able to withstand the
default of the top obligors in the portfolio. However, the
mezzanine and junior notes may be adversely impacted by a few
assets that may under perform.

Following the deleveraging of the transaction, the portfolio
credit quality has slightly deteriorated. The weighted average
rating factor, as reported by the trustee, increased to 32.1 from
30 between September 2015 and September 2016, indicating a slight
worsening of the portfolio credit quality. During the same period,
assets rated 'CCC' and below by Fitch increased to 27.0% from
20.8%. All overcollateralization tests have been in compliance
since the last review and deleveraging more than offset the rise
in the share of assets rated 'CCC' or below.

The transaction exited its reinvestment period in January 2014.
Reinvestment of unscheduled principal proceeds and sale proceeds
from credit-improved or credit-impaired assets is currently not
permitted due to several conditions not being met (including
passing the Fitch weighted average rating factor test).

The transaction uses a macro currency swap to hedge sterling
exposure. The hedge is not perfect and residual currency risk is
borne by the structure. When a sterling asset defaults, the
sterling recovery proceeds might be insufficient to reduce the
swap balance to the performing sterling collateral balance and the
manager will have to obtain sterling in the spot market. Also,
while awaiting recovery proceeds, the structure continues to make
payments on the sterling leg of the macro currency swap, even
though the defaulted asset no longer generates sterling interest.
This currency mismatch is partially mitigated through the use of
currency options. The remaining exchange rate exposure is absorbed
by the structure.

The macro currency swap is scheduled to expire in January 2019. As
of September 2016 the portfolio contained sterling assets
totalling GBP12.5m (down from GBP17.5m a year ago), which mature
after the expiration of the macro currency swap. This increases
the sensitivity of the transaction to currency risk at the tail
end of its life. Fitch has found that the transaction can
withstand the various combinations of interest rate and currency
stresses overlaid with default skews between sterling and euro
assets at the proposed rating stress levels.

RATING SENSITIVITIES

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

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pool and the transaction. There were no findings that affected the
rating analysis. Fitch has not reviewed the results of any third
party assessment of the asset portfolio information or conducted a
review of origination files as part of its ongoing monitoring.

The majority of the underlying assets have ratings or credit
opinions from Fitch and/or other Nationally Recognized Statistical
Rating Organizations and/or European Securities and Markets
Authority registered rating agencies. Fitch has relied on the
practices of the relevant groups within Fitch and/or other rating
agencies to assess the asset portfolio information.

Overall, Fitch's assessment of the information relied upon for the
agency's rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.



=============
R O M A N I A
=============


ELCEN: Bucharest Court Approves Insolvency Request
--------------------------------------------------
Romania Insider reports that the Bucharest Court approved on
Oct. 6 the insolvency request of Electrocentrale Bucuresti
(ELCEN), a state-owned power producer that also provides the heat
and hot water distributed in Bucharest.

KPMG was appointed the company's judicial administrator, Romania
Insider discloses.

According to Romania Insider, the company said its total debts
have reached EUR402 million whereas its claims amount to EUR827
million.  The company has a lot of money to recover from the
Bucharest municipality's heat distributor RADET, which also
officially went into insolvency earlier last week, Romania Insider
notes.

The company said the insolvency would help ELCEN optimize its
activity, Romania Insider relates.  Its creditors will have to
accept a reorganization plan, Romania Insider states.

The ELCEN board of administration decided the producer's
insolvency on Sept. 22, Romania Insider recounts.



===========
R U S S I A
===========


CB ALTA-BANK: Liabilities Exceed Assets, Assessment Shows
---------------------------------------------------------
The provisional administration of CB Alta-Bank (CJSC) appointed by
virtue of Bank of Russia Order No. OD-403, dated February 8, 2016,
following revocation of its banking license detected in the course
of assessing the bank's assets a poor quality of its loan
portfolio resulted from extending loans to organizations not
involved in real economic activities, according to the press
service of the Central Bank of Russia.

Besides, the provisional administration in the course of
examination of CB Alta-Bank (CJSC) financial standing revealed
transactions bearing the evidence of moving out assets worth
RUR0.5 billion through assigning bank depositors' outstanding loan
right (claim) to a dummy company.

According to estimates by the provisional administration, the
asset value of CB Alta-Bank (CJSC) does not exceed RUR5 billion,
while its liabilities to creditors amount to RUR5.5 billion,
including liabilities worth RUR1.8 billion to households.

On April 7, 2016, the Court of Arbitration of the city of Moscow
took a decision to recognize CB Alta-Bank (CJSC) insolvent
(bankrupt) with the state corporation Deposit Insurance Agency
appointed as a receiver.

The Bank of Russia submitted the information on the financial
transactions bearing the evidence of criminal offenses conducted
by the former management and owners of CB Alta-Bank (CJSC) to the
Prosecutor General's Office of the Russian Federation, the Russian
Ministry of Internal Affairs and the Investigative Committee of
the Russian Federation for consideration and procedural decision
making.


CB RAZVITIE: Put on Provisional Administration on October 10
------------------------------------------------------------
The Bank of Russia, by its Order No. OD-3443, dated October 10,
2016, revoked the banking license of Cherkessk-based credit
institution Commercial Bank Razvitie, LLC (LLC CB Razvitie) from
October 10, 2016, according to the press service of the Central
Bank of Russia.

The Bank of Russia took such an extreme measure -- revocation of
the banking license -- due to the credit institution's failure to
comply with the federal banking laws and the Bank of Russia
regulations, equity capital adequacy ratios below two per cent,
considering repeated application within a year of measures
envisaged by the Federal Law "On the Central Bank of the Russian
Federation (Bank of Russia)".

LLC CB Razvitie implemented high-risk lending policy connected
with placement of funds into low-quality assets.  Equity capital
adequacy was down to critical. Management and owners of the credit
institution did not take any efficient measures to bring its
activities back to normal.  Under these circumstances, the Bank of
Russia performed its duty on the revocation of the banking license
from the credit institution in accordance with Article 20 of the
Federal Law "On Banks and Banking Activities".

The Bank of Russia, by its Order No. OD-3444, dated October 10,
2016, appointed a provisional administration to LLC CB Razvitie
for the period until the appointment of a receiver pursuant to the
Federal Law "On the Insolvency (Bankruptcy)" or a liquidator under
Article 23.1 of the Federal Law "On Banks and Banking Activities".
In accordance with federal laws, the powers of the credit
institution's executive bodies are suspended.

LLC CB Razvitie is a member of the deposit insurance system.  The
revocation of the banking licence is an insured event as
stipulated by Federal Law No. 177-FZ "On the Insurance of
Household Deposits with Russian Banks" in respect of the bank's
retail deposit obligations, as defined by legislation.  The said
Federal Law provides for the payment of indemnities to the bank's
depositors, including individual entrepreneurs, in the amount of
100% of the balance of funds but not more than RUR1.4 million per
depositor.

According to reporting data, as of September 1, 2016, LLC CB
Razvitie ranked 238th in terms of assets in the Russian banking
system.


PROMSVYAZBANK PJSC: S&P Assigns 'BB-' Rating to Sr. Unsec. Loan
---------------------------------------------------------------
S&P Global Ratings has assigned its 'BB-' long-term rating to the
proposed U.S. dollar-denominated senior unsecured loan
participation notes (LPNs) to be issued by Russia-based
Promsvyazbank PJSC (BB-/Negative/B) via its financial vehicle, PSB
Finance S.A.

The LPNs will be issued under PSB Finance's $3 billion LPN program
set up to finance loans to Promsvyazbank.  The rating is subject
to S&P's analysis of the notes' final documentation.

S&P currently understands that the notes will mature more than one
year after issuance.  The final terms are to be defined at the
time of the placement of notes.

S&P rates LPNs issued by a special purpose vehicle (SPV) at the
same level as equivalent-ranking debt of the underlying borrower
(the sponsor), and treat the contractual obligations of the SPV as
financial obligations of the sponsor if the following conditions
are met:

   -- All of the SPV's debt obligations are backed by equivalent-
      ranking obligations with equivalent payment terms issued by
      the sponsor, Promsvyazbank;

   -- The SPV is a strategic financing entity for the sponsor,
      set up solely to raise debt on behalf of the sponsor's
      group; and

   -- S&P believes the sponsor is willing and able to support the
      SPV to ensure full and timely payment of interest and
      principal when due on the debt issued by the SPV, including
      payment of any of the SPV's expenses.

Following S&P's review, it has concluded that the proposed senior
unsecured LPNs meet all these conditions, hence S&P's decision to
rate the notes 'BB-', in line with the rating on Promsvyazbank,
subject to S&P's analysis of the final documentation.


RUSAL PLC: Moody's Assigns Ba3 CFR, Outlook Stable
--------------------------------------------------
Moody's Investors Service has assigned a corporate family rating
of Ba3 and probability of default rating of Ba3-PD to United
Company RUSAL Plc, the second-largest aluminium producer in the
world.  The outlook on the ratings is stable.  This is the first
time that Moody's has assigned ratings to RUSAL.

                         RATINGS RATIONALE

RUSAL's Ba3 CFR factors in the company's (1) status as the second-
largest aluminium producer globally and the monopoly position in
Russia; (2) low cash costs of aluminium production, 80% self-
sufficiency in bauxite and 100% self-sufficiency in alumina; (3)
long-term contracts with affiliated power plants, which reduces
RUSAL's energy costs and provides stability for its supplies; (4)
geographic diversification of mining assets and aluminium sales;
(5) large share of around 45% of value-added products in total
sales; (6) fairly high Moody's-adjusted EBITDA margin of 17.9% as
at June 30, 2016, backed by the weak rouble and completed
operational reorganization; (7) ownership of a 27.82% stake in MMC
Norilsk Nickel, PJSC (Ba1 negative), which generates a significant
dividend cash inflow; (8) Moody's expectation that the company
will reduce its leverage towards 4.0x Moody's-adjusted debt/EBITDA
(calculated including annualized dividends from Norilsk Nickel)
over the next 12-18 months, from 4.5x at June 30, 2016; (9) fairly
conservative financial policy aimed at deleveraging; (10) positive
free cash flow generation supported by sustainable dividend inflow
from Norilsk Nickel, moderate capex and dividend payouts; and (11)
adequate liquidity.

At the same time, the rating takes into account the company's (1)
geographic concentration of aluminium plants in Russia; (2)
exposure to the volatile price of aluminium, although mitigated by
the expected gradual growth in global demand for aluminium; (3)
elevated leverage of 4.5x Moody's-adjusted debt/EBITDA (calculated
including annualized dividends from Norilsk Nickel) as at 30 June
2016; (4) the heightened business, political and event risks in
the countries where the company mines bauxite and produces
alumina, primarily Guyana, Guinea, Jamaica and Ukraine; and (5)
exposure to Russia's macroeconomic, regulatory and operating
environment.

                 RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's expectation that RUSAL will
(1) reduce its Moody's-adjusted debt/EBITDA towards 4.0x
(calculated including annualized dividends from Norilsk Nickel)
over the next 12-18 months; (2) continue to generate a positive
free cash flow; (3) maintain healthy liquidity; and (4) pursue a
conservative financial policy.

               WHAT COULD CHANGE THE RATING UP/DOWN

Moody's could upgrade the rating if the company were to (1) reduce
its Moody's-adjusted debt/EBITDA below 3.5x (calculated including
annualized dividends from Norilsk Nickel) on a sustainable basis;
(2) continue to generate a positive free cash flow; (3) maintain
solid liquidity; and (4) pursue a conservative financial policy.

Moody's could downgrade the rating if the company's (1) Moody's-
adjusted debt/EBITDA were to remain above 4.5x (calculated
including annualized dividends from Norilsk Nickel) on a sustained
basis; or (2) operating performance were to weaken materially; or
(3) liquidity were to deteriorate and the company failed to
address the upcoming debt maturities in a timely fashion.

                        PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global Mining
Industry published in August 2014.

Headquartered in Russia, RUSAL is the world's second-largest
integrated aluminium producer, with aluminium output of 3.6
million tonnes for 2015.  In the last 12 months through June 2016,
the company generated revenue of $7.8 billion and Moody's-adjusted
EBITDA of $1.5 billion.  RUSAL's major shareholder, EN+ Group
holds 48.13% of its share capital.  Other shareholders include
Onexim Holdings (17.02%), Sual Partners (15.80%), Amokenga
Holdings (8.75%; ultimately controlled by Glencore).  RUSAL is
listed on the Hong Kong Stock Exchange, Moscow Exchange and
Euronext Paris, with 10.04% of its shares in free float, including
GDRs.  The remaining 0.26% of shares is owned by the company's
management.



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


IM CAJAMAR 4: Fitch Puts BBsf Rating on Series D Tranche on RWN
---------------------------------------------------------------
Fitch Ratings has placed one tranche of IM Cajamar 4 on Rating
Watch Negative (RWN) and two tranches of IM Cajamar 5 on Rating
Watch Positive (RWP) following discovery of errors in the manual
processing of the loan level data and manual entry of data into
its EMEA RMBS Surveillance Model for Spain.

KEY RATING DRIVERS

Fitch has found that in its January 22, 2016 rating action for IM
Cajamar 4 and 5's notes some of the entered data relating to
borrower and loan characteristics of the two portfolios, as well
as data used in the calculation of the cost of carry were
incorrectly entered into Fitch's EMEA RMBS Surveillance Model for
Spain. This resulted in erroneous foreclosure frequency, recovery
rates and net loss rates.

Fitch will determine the effect of these inconsistencies by
conducting a full analysis of the transactions.

RATING SENSITIVITIES

The resolution of the Rating Watch may result in downgrades for IM
Cajamar 4's class D notes and upgrades of IM Cajamar 5's class B
and C notes.

DUE DILIGENCE USAGE

Fitch has not checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. Fitch has not reviewed the results of
any third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

Fitch did not undertake a review of the information provided about
the underlying asset pools ahead of the transactions' initial
closing. The subsequent performance of the transactions over the
years is consistent with the agency's expectations given the
operating environment and Fitch is therefore satisfied that the
asset pool information relied upon for its initial rating analysis
was adequately reliable.

The rating actions are as follows:

   IM Cajamar 4, FTA

   -- Series D: 'BBsf'; placed on RWN

   IM Cajamar 5, FTA

   -- Series B: 'BBBsf'; placed on RWP

   -- Series C: 'BB+sf'; placed on RWP



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


HABAS SINAI: Fitch Withdraws 'B+' LT Issuer Default Ratings
-----------------------------------------------------------
Fitch Ratings has withdrawn Habas Sinai ve Tibbi Gazlar Istihsal
Endustrisi A.S's (Habas) Long-Term Foreign and Local Currency
Issuer Default Ratings at 'B+' and Long-Term National Rating at
'A(tur)'.

Fitch has chosen to withdraw Habas's rating due to commercial
reasons. Fitch will no longer provide rating or analytical
coverage for this issuer.



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


ABJ TRADING: Brazilian Case Recognized as Foreign Main Proceeding
-----------------------------------------------------------------
The High Court of Justice, Chancery Division, has entered an order
recognizing the Brazilian proceeding of ABJ Trading LLP as a
foreign main proceeding in accordance with the UNCITRAL Model Law
on Cross-Border Insolvency.

Accordingly, by virtue of the order entered Aug. 9, 2016, it is
ruled that:

  (a) No step may be taken to enforce any mortgage, charge, lien
      or other security over ABJ's property except with the
      consent of the foreign representative or the permission of
      the Court

  (b) No step may be taken to repossess goods in ABJ's possession
      under a hire-purchase agreement except with the consent of
      the Foreign Representative or the permission of the Court

  (c) Subject that the Holco Proceeding may not be stayed, no
      legal process may be instituted or continued against ABJ or
      its property except with the consent of the Foreign
      Representative or permission of the Court.

  (d) An administrative receiver of ABJ may not be appointed.

  (e) No winding up petition may be presented in respect of ABJ
      except with the consent of the Foreign Representative or
      the permission of the Court, and no order may be made for
      the winding up of ABJ

  (f) Subject to certain exceptions, ABJ's right to transfer,
      encumber or otherwise dispose of any of its assets is not
      suspended.

The Order applies only in Great Britain and does not have extra-
territorial effect.

The Debtor does not conduct any business in England.

The Debtor's foreign representative is:

          Valdoir Slapak
          Grupo Bom Jesus
          Avenida Presidente Joao Goulart
          Vila Aurora, Rondonopolis
          Mato Grosso, Brazil
          78740-034


ED'S EASY DINER: Sale Via Pre-Pack Administration Likely
--------------------------------------------------------
City A.M. reports that casual dining chain Ed's Easy Diner could
imminently be sold off in a quickie sale for as little as
GBP15 million.

According to City A.M., sources told The Times the hard-and-fast
sale will probably take the form of a pre-pack administration
could be announced in the coming days after the group suffered a
trading slump over the summer.

Ed's management team brought in KPMG last month after a plummet in
like-for-like sales, though a few months ago, the company hired
financial advisory firm AlixPartners to advise on a potential
company voluntary arrangement to offload certain loss-making
sites, City A.M. relates.

Rutland Partners and Rcapital are two of the groups tipped as
among the latest buyers for Ed's, City A.M. discloses.


MONARCH AIRLINES: Financial Lifeline Expected This Week
-------------------------------------------------------
Jillian Ambrose at The Telegraph reports that Monarch Airlines'
multi-million pound rescue bid will go down to the wire this week,
with a financial lifeline expected to come through just hours
before the extension on its operating license is due to expire on
Wednesday, Oct. 12.

According to The Telegraph, the low-cost airline is locked in
talks with major stakeholder Greybull Capital and Boeing, and
expects to unveil a massive funding overhaul to satisfy the Civil
Aviation Authority's financial health check-list and clinch a new
Air Travel Operators' Licence (Atol).

Monarch was granted a stay of execution by the aviation authority
just four hours before its Atol was due to expire at the end of
last month, and now faces another looming deadline on Wednesday,
Oct. 12, when the twelve day extension expires, The Telegraph
relates.

Monarch boss Andrew Swaffield has assured staff that the deal will
go through but warned that it will not conclude before the day of
the crunch deadline, The Telegraph discloses.

The aviation authority was initially reluctant to renew Monarch's
license due to concerns over its available cash, but the airline
is preparing to bounce back with a major new financing deal with
Boeing and a fresh cash injection from Greybull Capital which owns
a 90% stake in the company, The Telegraph notes.

Monarch Airlines, also known as and trading as Monarch, is a
British airline based at Luton Airport, operating scheduled
flights to destinations in the Mediterranean, Canary Islands,
Cyprus, Egypt, Greece and Turkey.


* UK: Scottish Business Failures Up 30% to 230, KPMG Says
---------------------------------------------------------
BBC News reports that prolonged economic uncertainty led to a
sharp rise in the number of Scottish business failures this
summer.

According to BBC, professional services firm KPMG found corporate
insolvency appointments increased year-on-year by 30%, to 230, in
the three months to September 30.

However, the number was 14% down on the figure for the previous
three months, BBC notes.

Administration appointments, which usually involve larger
businesses, increased by 42% to 27, BBC discloses.

There was also a 28% increase in liquidation appointments, to 203.

Blair Nimmo, head of restructuring for KPMG in the UK, as cited by
BBC, said: "Business failures continue to rise amidst well
documented challenges facing the oil and gas sector and as a
result of sustained uncertainty caused by the EU referendum.

"While it would be easy to blame an immediate post-Brexit rise in
insolvencies directly on the result of the vote in June, in
reality the statistics are more reflective of the long-term impact
uncertainty has had on the economy in the past 12 months or so.

"This is evidenced by the fact total corporate appointments from
July to September actually fell in comparison to the quarter
immediately prior to the referendum.  A similar trend was seen in
the lead up to and following the Scottish independence referendum
in September 2014."



                            *********

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.


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