TCREUR_Public/161014.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

          Friday, October 14, 2016, Vol. 17, No. 204


                            Headlines


A U S T R I A

HETA ASSET: Moody's Confirms 'Ca' Senior Unsecured Debt Rating


D E N M A R K

DANSKE BANK: Moody's Affirms Ba1 Pref Stock Non-Cumulative Rating


F R A N C E

SOLOCAL SA: Creditors Back EUR1.2BB Debt Restructuring


I R E L A N D

ADAGIO III: S&P Raises Rating on Class E Notes to BB-
ALPSTAR CLO 1: S&P Raises Rating on Class E Notes to B+


N E T H E R L A N D S

JACOBS DOUWE: Moody's Affirms Ba3 Corporate Family Rating


P O L A N D

ARTNEWS SA: Court Declares Firm Insolvent


R U S S I A

TATFONDBANK PJSC: S&P Assigns 'B' Rating on Proposed LPNs


S E R B I A

TREPCA: Kosovo Parliament Votes in Favor of Nationalization


S P A I N

NUEVA PESCANOVA: In Talks with Debtholders on Debt-Equity Swap
ROYAL TAPESTRY: Averts Bankruptcy Following Cash Injection


S W E D E N

VOLVO CAR: Moody's Hikes Corporate Family Rating to Ba2


S W I T Z E R L A N D

GABLE INSURANCE: In Administration, PwC Takes Over Operations


U K R A I N E

FERREXPO PLC: Moody's Affirms Caa3 Corporate Family Rating
MRIYA AGRO: Group Linked to Guta Family Raids Facilities


U N I T E D   K I N G D O M

ALBA GROUP: S&P Puts 'B-' CCR on CreditWatch Developing
ED'S EASY DINER: Enters Into Pre-Pack Administration Deal
HAWKSMOOR MORTGAGES: Moody's Assign (P)Ba2 Rating to Cl. E Notes
INFINIS ENERGY: Moody's Cuts Corporate Family Rating to B3
PUNCH TAVERNS: S&P Lowers CCR to 'CCC+', Outlook Remains Stable

TITAN EUROPE 2007-2: S&P Lowers Rating on Cl. A2 Notes to 'CCC'


X X X X X X X X

* BOOK REVIEW: Lost Prophets -- An Insider's History


                            *********



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A U S T R I A
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HETA ASSET: Moody's Confirms 'Ca' Senior Unsecured Debt Rating
--------------------------------------------------------------
Moody's Investors Service taken rating actions on three Austrian
financial institutions following the announcement by Kaerntner
Ausgleichszahlungs-Fonds (KAF, backed senior secured rating Aa1
stable) on October 10, 2016, that the required two-third
acceptance rate was comfortably met for its renewed tender offer
for Heta Asset Resolution AG's senior unsecured and subordinate
debt obligations, which benefit from a grandfathered statutory
guarantee of the regional State of Carinthia (B1 with developing
outlook).

Consequently, Moody's has taken the following rating actions:

   -- Confirmation of Heta's Ca senior unsecured debt rating and
      of its C subordinate debt rating, all guaranteed by the
      State of Carinthia.

   -- Upgrade of Hypo Tirol Bank AG's (Hypo Tirol) deposit
      ratings to Baa3/Prime-3 from Ba1/Not-Prime and of its
      long-term debt ratings to Baa3 from Ba1. Moody's further
      upgraded Hypo Tirol's standalone baseline credit assessment
      (BCA) and adjusted BCA to ba2 from ba3, and its
      Counterparty Risk Assessment (CR Assessment) to
      Baa2(cr)/Prime-2(cr) from Baa3(cr)/Prime-3(cr). Hypo
      Tirol's backed long-term senior unsecured debt and deposit
      ratings were upgraded to Baa1 from Baa2 while its backed
      short-term deposit ratings of Prime-2 were affirmed.

   -- Upgrade of Pfandbriefbank's (Oesterreich) AG's
      (Pfandbriefbank) backed senior unsecured debt ratings to
      Baa3 from Ba1.

The long-term senior unsecured and deposit ratings of the
entities affected by the rating action carry a stable outlook.

The rating action concludes the rating review initiated on May
23, 2016 on all three entities' ratings.

Further, Heta's Austrian government-guaranteed subordinated debt
rating of Aa1 is unaffected by the rating action.

RATINGS RATIONALE

CONFIRMATION OF HETA'S DEFICIENCY-GUARANTEED RATINGS

The confirmation of Heta's deficiency-guaranteed Ca-rated senior
unsecured debt rating and C-rated subordinate debt rating
reflects Moody's unchanged assessment that the expected losses
for each liability class remain in the 35%-65% and the greater-
than-65% range, respectively. This assessment takes into account
a compensatory payment for Carinthia's deficiency guarantee
undertaken by KAF, which is 10.97 percentage points for both debt
classes. These ratings relate to creditors who have not accepted
the KAF's renewed tender offer (so-called "hold-outs") and thus
will only benefit from an orderly wind-down of Heta's assets,
which is not expected before end-2023. KAF, a public-sector
special purpose entity established under the regional law of the
State of Carinthia, is offering Heta creditors to swap their Heta
debt into a zero-coupon debt issuance which is backed by a full,
direct, unconditional and irrevocable guarantee provided by the
Government of Austria (Aa1, stable).

On April 10, 2016, the Austrian Financial Market Authority (FMA)
imposed several resolution measures on Heta, including a bail-in
of liabilities. The FMA's emergency administrative decision
("Mandatsbescheid") reduced the face value of Heta's senior
unsecured liabilities to 46.02%, while the entity's subordinated
liabilities had been written down to zero. In addition, the
regulator canceled interest payments and extended the maturity of
all affected liabilities until December 31, 2023, effectively
rolling over the payment moratorium that the regulatory body
ordered in March 2015.

The stable outlook on Heta's deficiency-guaranteed senior
unsecured debt rating reflects Moody's views that any cash
payback for hold-out creditors will not be known before Heta's
orderly wind-down is concluded until end-2023, which goes beyond
the outlook horizon.

UPGRADE OF HYPO TIROL'S BCA AND RATINGS

The upgrade of Hypo Tirol's BCA to ba2 from ba3 reflects the
significant reduction of downside risks related to Hypo Tirol's
contingent liabilities resulting from its joint and several
liability shared with fellow members of Pfandbriefbank.

In addition, owing to a reversal of impairments and reserves held
against its exposure to Heta, Moody's expects Hypo Tirol to
benefit from a sizable one-off profit, which will support Hypo
Tirol's efforts to further strengthen its capitalisation. At the
same time, the exchange of Hypo Tirol's illiquid Heta claims into
a liquid zero bond issued by KAF helps the bank further improve
its overall liquidity profile ahead of the bank's concentrated
debt maturities in 2017.

Hypo Tirol's stable rating outlook reflects the rating agency's
expectation that a significant change in the bank's liability
structure as a result of the upcoming maturity of large portions
of its backed senior unsecured debt in 2017 will have a net
neutral effect on the bank's ratings. Moody's expects a
successful completion of the refinancing operations predominantly
through covered bond issuance and the use of excess liquidity to
put upward pressure on the bank's BCA, mostly because of a
reduced market funding dependence and a smoothened debt maturity
profile. At the same time, the rating agency expects the bank to
make additional progress in the work-out of its Italian legacy
non-performing loan (NPL) portfolio.

The reduction of senior unsecured funding components will,
however, compress significantly the currently still comfortable
buffer of senior unsecured instruments, which will put pressure
on the bank's Advanced LGF notching results that could partly
offset upward pressure on the bank's standalone credit profile.

UPGRADE OF PFANDBRIEFBANK'S RATINGS

The upgrade reflects Moody's assessment that the debt exchange
exerts upward pressure on Pfandbriefbank's supporting member
banks' creditworthiness from which Pfandbriefbank's ratings are
derived. The upward pressure results from lower-than-previously
expected losses imposed on their direct and indirect Heta debt
exposure based on the debt exchange, which reduces tail risk
related to Pfandbriefbank support.

Pfandbriefbank's rating continues to be purely based on the
member banks' creditworthiness and does not include uplift from
public-sector entities, reflecting the track record of lack of
commitment by several federal states to honour their obligations
under the existing joint and several liability framework.

Given its business profile as a poorly capitalised issuing
vehicle for its member banks, i.e., the Austrian
Landeshypothekenbanken or their legal successors, Pfandbriefbank
relies fully on the performance of its concentrated assets to
service its liabilities. The Heta moratorium in March 2015
therefore impaired its liquidity and solvency. Pfandbriefbank
came under stress after the regulator in Austria imposed a
payment moratorium on the liabilities of Heta to which
Pfandbriefbank had a EUR1.2 billion exposure as of March 2015.
Pfandbriefbank's liabilities are grandfathered under a statutory
joint and several guarantee from member banks and their former
guarantors, i.e. the relevant Austrian federal states, according
to Austrian federal law.

The stable outlook on Pfandbriefbank's senior backed debt ratings
reflects Moody's assessment on the supporting Austrian
Landeshypothekenbanken credit quality.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Heta Asset Resolution AG

Upward ratings pressure on Heta's Carinthian-state-guaranteed
senior unsecured and subordinated debt ratings could result from
Moody's assessment of a higher-than-currently anticipated
recovery rate for each debt class during the orderly wind-down of
Heta.

Moody's would consider downgrading Carinthian-state-guaranteed
senior unsecured debt ratings if the expected loss assumption on
these instruments were higher than currently expected.

Hypo Tirol Bank AG

An upgrade of Hypo Tirol's long-term debt and deposit ratings
could result from an upgrade of its standalone BCA, whereas a
downgrade could be driven by the anticipated change in the bank's
funding profile which may put downward pressure on the results of
Moody's Advanced LGF analysis.

Hypo Tirol's BCA may be upgraded if: (1) following the bank's
refinancing of its concentrated 2017 debt maturities, its funding
profile is more evenly spread out than presently and less
dependent on confidence-sensitive market funding sources; and/or
(2) the bank continues to make solid progress in the reduction of
its Italian NPL exposures.

Hypo Tirol's Advanced LGF analysis may result in reduced uplift
if following the refinancing of backed senior unsecured
maturities, the amount of equal-ranking debt for remaining senior
unsecured creditors and wholesale depositors declined beyond the
rating agency's current expectations.

Pfandbriefbank (Oesterreich) AG

An upgrade could result from: (1) a strengthening of the member
banks' credit profiles; or (2) a clarification of the legal
obligations of the Austrian federal member-states under the
guarantee framework, to the extent that this removes any doubts
over the full, unconditional liability of all parties to support
Pfandbriefbank in a timely fashion. A downgrade could result from
a deterioration of the member banks' credit profiles.

LIST OF AFFECTED RATINGS

The following ratings were upgraded:

   Issuer: Pfandbriefbank (Oesterreich) AG

   -- Backed Senior Unsecured Ratings, to Baa3 from Ba1, outlook
      changed to Stable from Rating Under Review

   Issuer: Hypo Tirol Bank AG

   -- Adjusted Baseline Credit Assessment, to ba2 from ba3

   -- Baseline Credit Assessment, to ba2 from ba3

   -- Long Term Counterparty Risk Assessment, to Baa2(cr) from
      Baa3(cr)

   -- Short Term Counterparty Risk Assessment, to P-2(cr) from P-
      3(cr)

   -- Long Term Bank Deposit Ratings, to Baa3 from Ba1, outlook
      changed to Stable from Rating Under Review

   -- Short Term Bank Deposit Ratings, to P-3 from NP

   -- Senior Unsecured Rating, to Baa3 from Ba1, outlook changed
      to Stable from Rating Under Review

   -- Senior Unsecured MTN Rating, to (P)Baa3 from (P)Ba1

   -- Subordinate MTN Rating, to (P)Ba3 from (P)B1

   -- Backed Long Term Bank Deposit Ratings, to Baa1 from Baa2,
      outlook changed to Stable from Rating Under Review

   -- Backed Senior Unsecured Ratings, to Baa1 from Baa2, outlook
      changed to Stable from Rating Under Review

   -- Backed Senior Unsecured MTN Rating, to (P)Baa1 from (P)Baa2

   -- Backed Subordinate Rating, to Ba1 from Ba2

   -- Backed Senior Subordinate Rating, to Ba1 from Ba2

   -- Backed Subordinate MTN Rating, to (P)Ba1 from (P)Ba2

The following rating was affirmed:

   Issuer: Hypo Tirol Bank AG

   -- Backed Short-Term Bank Deposit Ratings, at P-2

The following ratings were confirmed:

   Issuer: Heta Asset Resolution AG

   -- Carinthian-state-guaranteed Senior Unsecured Debt Ratings
      at Ca, outlook changed to Stable from Rating Under Review

   -- Carinthian-state-guaranteed Subordinate Debt Ratings, at C

Not Affected:

   Issuer: Heta Asset Resolution AG

   -- Austrian government-guaranteed Subordinate Debt Rating at
      Aa1

Outlook Actions:

   Issuer: Heta Asset Resolution AG

   -- Outlook, changed to Stable from Rating Under Review

   Issuer: Hypo Tirol Bank AG

   -- Outlook, changed to Stable from Rating Under Review

   Issuer: Pfandbriefbank (Oesterreich) AG

   -- Outlook, changed to Stable from Rating Under Review

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Bank
published in January 2016.



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D E N M A R K
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DANSKE BANK: Moody's Affirms Ba1 Pref Stock Non-Cumulative Rating
-----------------------------------------------------------------
Moody's Investors Service upgraded Danske Bank A/S's long-term
deposit ratings to A1 from A2, its long-term deposit note/ CD
program rating to (P)A1 from (P)A2 and affirmed all other
ratings. The rating agency also changed the outlook to positive
from stable on Danske Bank A/S's long-term deposit ratings,
long-term issuer rating and senior debt ratings. At the same
time, the rating agency affirmed the bank's standalone baseline
credit assessment (BCA) at baa1.

RATINGS RATIONALE

The affirmation of Danske Bank A/S's baa1 BCA reflects the
progressive strengthening of the bank's performance in recent
years following its challenges during the financial crisis, both
domestically and abroad. The continued improvements include a
strengthening of its asset quality, capitalization and
profitability, as the bank benefits from a balanced and
well-diversified lending portfolio.

Danske Bank A/S has continued to improve its asset quality in
recent quarters: group problem loans as a percentage of gross
loans (as calculated by the bank) declined to 2.6% at end-June
2016 from 3.0% at end-2015 and 3.7% at end-2014. The bank's high
historic problem loans ratio reflected weak asset quality at its
operations in the Republic of Ireland (government bond rating A3
positive) and to some extent in Northern Ireland (UK government
bond rating Aa1 negative) and the impact of the financial crisis
in Denmark on its domestic portfolio. The Irish and Northern
Irish exposure have significantly decreased and now represent
only around 1% of the loan book. The bank's domestic asset
quality is expected to record moderate improvements, supported by
the domestic economy, which Moody's forecast to grow by 1.3% in
2016, following growth of 1.2% in 2015.

The bank's capital ratios have also improved, increasing the
bank's ability to absorb potential future losses. At end-June
2016, its Common Equity Tier 1 (CET1) ratio was 15.8%. well-above
regulatory requirements. The bank's regulatory capital should
benefit from a normalization of the bank's profitability in 2016
and going forward.

Although still below that of similairly-rated peers,
profitability has also improved. Management's focus on reducing
operating cost and a contained cost of credit should continue to
support a positive profitability trend, mitigating margin
pressure resulting from the current low interest-rate environment
in Denmark.

RATIONALE FOR THE UPGRADE OF THE DEPOSIT RATINGS

The upgrade of Danske Bank A/S's long-term deposit ratings to A1
from A2 reflects an increase in the volume of deposits since end-
2015 and the planned issuance of unsecured debt, which we believe
offers further loss absorption for deposit liabilities issued by
the bank.

Taking account of the group's consolidated balance sheet
structure at end-June 2016 and its near-term funding plan,
Moody's Advanced Loss Given Failure (LGF) analysis indicates that
Danske Bank A/S's deposits are likely to face very low loss-
given-failure, due to the loss absorption provided by
subordinated debt and, potentially, by senior unsecured debt
should deposits be treated preferentially in a resolution, as
well as the substantial volume of deposits and senior debt
themselves. This results in a Preliminary Rating Assessment (PRA)
of a2 for deposits, two notches above the BCA, and one notch
higher than under the previous analysis, which was based on end-
2015 data.

Danske Bank A/S's senior unsecured debt, issued at the bank
level, is likely to face low loss-given-failure due to the loss
absorption provided by its own volume and the amount of debt
subordinated to it. This results in a PRA of a3, one notch above
the BCA, unchanged versus the previous analysis.

Moody's assumption of a moderate probability of government
support for Danske Bank A/S's senior unsecured debt and deposits
results in a one-notch uplift, leading to long-term deposit
ratings of A1 and long-term issuer rating of A2.

RATIONALE FOR THE POSITIVE OUTLOOK

The positive outlook on Danske Bank A/S's senior ratings reflects
the bank's improvements in financial metrics to date and the
expectation of a continuation of the positive trend. Moody's
considers the recent positive trends in asset quality, capital
and profitability to be sustainable. In addition, the bank has
shown improving recurring earnings in the first half of 2016,
supported by its balanced and well-diversified business mix.

RATIONALE FOR THE CR ASSESSMENT

As part of the action, Moody's also affirmed Danske Bank A/S's
long-term CR Assessment at Aa3(cr), four notches above the BCA of
baa1, and the short-term CR Assessment at P-1(cr). The CR
Assessment is driven by the banks' standalone assessment based on
the substantial cushion against default provided to the senior
obligations represented by subordinated instruments, accounting
for three notches of uplift relative to the BCA, as well as one
notch of government support, in line with the agency's support
assumptions on the bank's deposits and senior unsecured debt.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Upward rating pressure could develop from a continuation of the
positive trends in the bank's financial performance, including:
(1) an improvement in Moody's asset risk assessment, especially
with regards to more volatile segments, such as agriculture and
commercial real estate; and (2) an increase in profitability and
reduced earnings volatility, supported by revenues, without a
material increase in risk provisioning; (3) an improvement in the
capital leverage position, currently constrained by the large
nominal size of the bank's balance sheet.

Downward rating pressure could arise from: (1) any renewed
pressure on asset quality, particularly in one of the bank's core
markets; (2) any indication that the firm will not deliver the
anticipated improvement in profitability; or (3) any sign that
the improvements achieved in recent years are not sustainable.

Danske Bank Plc

Moody's has upgraded Danske Bank Plc's long-term deposit ratings
to A1 from A2 and affirmed all other ratings. The rating agency
also changed the outlook to positive from stable on Danske Bank
Plc's long-term deposit ratings, long-term issuer rating and
senior debt ratings. At the same time, the rating agency affirmed
Danske Bank Plc's BCA at baa1.

The affirmation of Danske Bank Plc's standalone BCA of baa1
reflects the bank's solid market position as Finland's third-
largest bank, stable earnings generation and moderate asset risk.
Danske Bank Plc's profitability is relatively low. However,
Moody's expects that the implementation of restructuring measures
to improve cost efficiency and profitability, set against the low
pace of economic growth in the country, will drive a positive
trend in profits.

The upgrade of Danske Bank Plc's long-term deposit ratings to A1
from A2 is based on the results of Moody's Advanced Loss Given
Failure (LGF) analysis. Danske Bank is subject to the Bank
Recovery Resolution Directive (BRRD) and Moody's expects its
resolution to take place with a Single Point of Entry (SPE)
approach. Therefore, Moody's performs the LGF analysis on the
consolidated balance sheet of Danske Bank group, including the
Finnish operations. Moody's LGF analysis for Danske Bank Plc
indicates a very low loss-given-failure, resulting in a two-notch
uplift from the bank's adjusted BCA to the long-term deposits and
a one-notch uplift to senior unsecured ratings.

The change in outlook to positive from stable on Danske Bank
Plc's senior ratings reflects that Moody's, under its affiliate
support analysis, positions Danske Plc's BCA is in line with that
of its parent Danske Bank A/S.

As with its parent, Danske Bank A/S, Moody's continues to believe
that the probability of government support for Danske Bank plc's
long-term deposits and senior unsecured debt is moderate,
resulting in a one-notch uplift included in the bank's A2 long-
term senior unsecured debt and A1 long-term deposit ratings.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Upward pressure on the ratings might develop if the bank is able
to strengthen its earnings generation without increasing its risk
profile.

Downward rating pressure would emerge if: (1) the bank's
profitability deteriorates; (2) its asset quality deteriorates;
and/or (3) its risk profile increases, for example as a result of
increased exposures to more volatile sectors or increased
involvement in more risky operations such as capital market
activities.

List of Affected Ratings

Issuer: Danske Bank A/S

Upgrades:

   -- LT Deposit Note/CD Program (Local & Foreign Currency),
      Upgraded to (P)A1 from (P)A2

   -- LT Bank Deposits (Local & Foreign Currency), Upgraded to A1
      Positive from A2 Stable

Affirmations:

   -- LT Issuer Rating, Affirmed A2, Outlook, Changed To Positive
      From Stable

   -- ST Bank Deposits (Local & Foreign Currency), Affirmed P-1

   -- Senior Unsecured (Foreign Currency), Affirmed A2, Outlook,
      Changed To Positive From Stable

   -- Other Short Term (Foreign Currency), Affirmed (P)P-1

   -- Junior Subordinated Regular Bond/Debenture (Foreign
      Currency), Affirmed Baa3 (hyb)

   -- Senior Unsecured MTN (Foreign Currency), Affirmed (P)A2

   -- Pref. Stock Non-cumulative (Foreign Currency), Affirmed Ba1
      (hyb)

   -- Commercial Paper (Local & Foreign Currency), Affirmed P-1

   -- BACKED ST Deposit Note/CD Program (Foreign Currency),
      Affirmed P-1

   -- ST Deposit Note/CD Program (Local Currency), Affirmed (P)P-
1

   -- ST Deposit Note/CD Program (Foreign Currency), Affirmed P-1

   -- Adjusted Baseline Credit Assessment, Affirmed baa1

   -- Baseline Credit Assessment, Affirmed baa1

   -- LT Counterparty Risk Assessment, Affirmed Aa3(cr)

   -- ST Counterparty Risk Assessment, Affirmed P-1(cr)

Outlook Actions:

   -- Outlook, Changed To Positive From Stable

Issuer: Danske Bank Plc

Upgrades:

   -- LT Bank Deposits (Local & Foreign Currency), Upgraded to A1
      Positive from A2 Stable

Affirmations:

   -- LT Issuer Rating, Affirmed A2, Outlook, Changed To Positive
      From Stable

   -- ST Bank Deposits (Local & Foreign Currency), Affirmed P-1

   -- Senior Unsecured Regular Bond/Debenture (Local Currency),
      Affirmed A2, Outlook, Changed To Positive From Stable

   -- Senior Unsecured MTN (Local & Foreign Currency), Affirmed
      (P)A2

   -- Subordinate MTN (Local Currency), Affirmed (P)Baa2

   -- Pref. Stock Non-cumulative (Local Currency), Affirmed Ba1
      (hyb)

   -- Adjusted Baseline Credit Assessment, Affirmed baa1

   -- Baseline Credit Assessment, Affirmed baa1

   -- LT Counterparty Risk Assessment, Affirmed Aa3(cr)

   -- ST Counterparty Risk Assessment, Affirmed P-1(cr)

Outlook Actions:

   -- Outlook, Changed To Positive From Stable

Issuer: Danske Bank A/S (London Branch)

Upgrades:

   -- LT Deposit Note/CD Program (Foreign Currency), Upgraded to
      (P)A1 from (P)A2

Affirmations:

   -- ST Deposit Note/CD Program (Foreign Currency), Affirmed
      (P)P-1

Outlook Actions:

   -- Outlook, Changed To Positive From Stable

Issuer: Leonia Corporate Bank plc

Affirmations:

   -- BACKED Senior Unsecured (Foreign Currency), Affirmed A2,
      Outlook, Changed To Positive From Stable

Outlook Actions:

   -- Outlook, Changed To Positive From Stable

Issuer: Danske Corporation

Affirmations:

   -- ST Commercial Paper (Foreign Currency), Affirmed P-1

Outlook Actions:

   -- Outlook, None



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F R A N C E
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SOLOCAL SA: Creditors Back EUR1.2BB Debt Restructuring
------------------------------------------------------
Joe Mayes at Bloomberg News reports that Solocal SA, the French
directories provider, won creditor approval to restructure
EUR1.2 billion (US$1.3 billion) of debt, its second financial
reorganization in two years.

The company said in a statement the plan will now be put to a
shareholder vote on Oct. 19, Bloomberg relates.  If two-thirds
back the plan, it will be submitted to the commercial court in
Nanterre, France for approval, Bloomberg states.

Solocal, previously called PagesJaunes, plans to cut debt by
almost 70% and to raise fresh capital as it increasingly shifts
focus toward digital products from declining print directories,
Bloomberg discloses.  The company reorganized EUR1.6 billion of
borrowings in 2014, Bloomberg recounts.

The statement said more than two-thirds of creditors backed the
new restructuring plan, Bloomberg relays.

Solocal said earlier this month, Paulson & Co., Monarch
Alternative Capital (Europe) Ltd., Farallon Capital Europe LLP
and Amber Capital UK Holdings Ltd. all backed the proposal,
Bloomberg notes.



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I R E L A N D
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ADAGIO III: S&P Raises Rating on Class E Notes to BB-
-----------------------------------------------------
S&P Global Ratings raised its credit ratings on Adagio III CLO
PLC's class B, C, D, and E notes.  At the same time, S&P has
affirmed its ratings on the class A1A, A1B, A2, and A3 notes.

The rating actions follow S&P's analysis of the transaction using
data from the July 2016 trustee report, and the application of
its relevant criteria.

Since S&P's previous review in October 2015, the manager has
continued to reinvest unscheduled principal proceeds, as well as
proceeds received from the sale of assets.  Accordingly, not all
of the principal received over the intervening period has been
used to repay the senior notes (the class A1A, A2, and A3 notes).
As a result, S&P has only observed a small increase in credit
enhancement for the senior notes and the class B notes.

S&P conducted its cash flow analysis to determine the break-even
default rate (BDR) for each rated class of notes at each rating
level.  The BDR represents S&P's estimate of the maximum level of
gross defaults, based on our stress assumptions, that a tranche
can withstand and still fully pay interest and principal to the
noteholders.

S&P used the collateral amount that it considers to be performing
(approximately EUR429.5 million), and the weighted-average
recovery rates calculated in line with S&P's updated criteria for
rating corporate cash flow collateralized debt obligations
(CDOs). S&P also considered the projected run-off profile of the
transaction, and noted that there is limited projected
amortization in the next two years.  Therefore, S&P has not
modelled significant amortization of the transaction over this
period.  S&P's analysis also took into account the relatively
diverse nature of the portfolio, as well as the low cost of funds
associated with the senior tranches.

The results of S&P's analysis show that the available credit
enhancement for the class A1A, A1B, A2, and A3 notes is
commensurate with its currently assigned ratings.  S&P has
therefore affirmed its ratings on these classes of notes.

S&P's analysis also indicates that the available credit
enhancement for the class B, C, D, and E notes is commensurate
with higher ratings than those previously assigned.  This
analysis takes into account the results from S&P's credit and
cash flow modelling, as well as qualitative factors associated
with the transaction.  In particular, as noted above, S&P's
ratings take into account the limited deleveraging to date and
the expected maturity of the portfolio.

S&P has therefore raised its ratings on the class B, C, D, and E
notes.

Adagio III CLO is a cash flow collateralized loan obligation
(CLO) transaction managed by AXA Investment Managers Paris S.A.
It is backed by a portfolio of loans to primarily speculative-
grade corporate firms.  The transaction closed in August 2006 and
its reinvestment period ended in September 2013.

RATINGS LIST

Class            Rating
          To                From

Adagio III CLO PLC
EUR575.242 Million, $5 Million Senior And Subordinated Deferrable
Floating-Rate Notes

Ratings Raised

B         AA (sf)           AA- (sf)
C         A (sf)            A- (sf)
D         BB+ (sf)          BB (sf)
E         BB- (sf)          B+ (sf)

Ratings Affirmed

A1A       AAA (sf)
A1B       AA+ (sf)
A2        AA+ (sf)
A3        AA+ (sf)


ALPSTAR CLO 1: S&P Raises Rating on Class E Notes to B+
-------------------------------------------------------
S&P Global Ratings raised its credit ratings on Alpstar CLO 1
PLC's class B, D, and E notes.  At the same time, S&P has
affirmed its ratings on the class A2, C1, and C2 notes.

The rating actions follow S&P's analysis of the transaction's
performance and the application of its relevant criteria.

Since S&P's previous review on April 15, 2015, the class A1 notes
have been fully redeemed and the class A2 notes have started to
amortize.

As a result, all of the currently outstanding rated notes have
benefitted from an increase in par coverage.

S&P subjected the capital structure to our cash flow analysis to
determine the break-even default rate (BDR) for each class of
notes at each rating level.

The BDRs represent S&P's estimate of the level of asset defaults
that the notes can withstand and still fully pay interest and
principal to the noteholders.

S&P has estimated future defaults in the portfolio in each rating
scenario by applying its updated corporate collateralized debt
obligation (CDO) criteria.

S&P's analysis shows that the available credit enhancement for
the class B, D, and E notes is now commensurate with higher
ratings than those previously assigned.  Therefore, S&P has
raised its ratings on these classes of notes.

S&P's analysis also indicates that the available credit
enhancement for the class A2, C1, and C2 notes is still
commensurate with the currently assigned ratings.  Therefore, S&P
has affirmed its ratings on these classes of notes.

Alpstar CLO 1 is a cash flow collateralized loan obligation (CLO)
transaction managed by Chenavari Investment Managers.  A
portfolio of loans to mainly European speculative-grade
corporates backs the transaction.  Alpstar CLO 1 closed in April
2006 and its reinvestment period ended in April 2012.

RATINGS LIST

Alpstar CLO 1 PLC
EUR330 mil secured fixed- and floating-rate notes

                                       Rating       Rating
Class            Identifier            To           From
A2               02109NAB1             AAA (sf)     AAA (sf)
B                02109NAC9             AAA (sf)     AA (sf)
C1               02109NAD7             A+ (sf)      A+ (sf)
C2               02109NAE5             A+ (sf)      A+ (sf)
D                02109NAF2             BBB+ (sf)    BBB (sf)
E                02109NAG0             B+ (sf)      CCC+ (sf)



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


JACOBS DOUWE: Moody's Affirms Ba3 Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service has affirmed the Ba3 corporate family
rating (CFR) and B1-PD probability of default rating (PDR) of
JACOBS DOUWE EGBERTS Holdings B.V. ('JDE' or 'the company'), an
intermediate parent entity of JDE group, global coffee
manufacturer and retailer based in the Netherlands. Moody's has
also affirmed a Ba3 rating to the EUR5.8 billion currently
outstanding credit facilities (including EUR500 million undrawn
RCF) raised by Jacobs Douwe Egberts International B.V.
(previously Charger Opco B.V.). The outlook on all ratings is
positive.

The rating affirmation primarily reflects the following drivers:

   -- JDE's high, although improving, financial leverage,
      concentration in coffee segment and the remaining
      integration risk post JDE merger; offset by

   -- The company's increased scale and solid cash generation

RATINGS RATIONALE

The rating action was prompted by the announcement of amend-and-
extend request made the company. JDE proposes to raise a new, up
to EUR1 billion, 5-year term loan under the existing credit
agreement, with proceeds used to partially repay like-for-like
existing term loans. The maturities of the existing revolving
credit facility (RCF) and term loan A are proposed to be extended
by two years to 2021. The company also requests a margin
reduction, freeze of its only maintenance covenant (net leverage)
at year-end 2016 covenant level as well as loosening of some
credit terms under its existing senior facilities agreement. The
request, if successful, will improve the debt maturity profile
and cash generation.

The Ba3 CFR reflects JDE's (i) scale and strong market position
in key countries of operation; (ii) geographical and segmental
diversification within the defensive coffee segment; (iii)
further synergies potential leading to deleveraging expectation;
and (iv) good liquidity profile. The ratings also reflect (i)
exposure to low volume growth in Europe, mitigated by
premiumization trend; (ii) residual execution risk of combining
two businesses; (iii) Moody's adjusted gross leverage (mostly
excluding integration costs) expected to remain high at around
5.4x by the end of 2016; and (iv) short-term volatility of
earnings due to coffee price fluctuations.

The company generated EUR2,516 million sales and EUR466 million
adjusted EBIT during the first six months of 2016 leading to
18.5% adjusted EBIT margin. Moody's gross adjusted leverage as of
30 June 2016 was 5.9x (adjusted for most of restructuring costs)
and is expected to decline to 5.4x by the end of 2016, slightly
better than our previous expectation of 5.6x due to synergies
roll out brought forward. Moody's deleveraging expectation in
further years reflects not only EBITDA growth but also voluntary
debt repayment out of cashflow generation. Moody's note that
leverage may be volatile, affected by fluctuations in mark-to-
market of derivatives related to hedging of green coffee
purchases, included in Moody's adjusted EBITDA.

The company is on track with its supply chain and procurement
initiatives such as warehouse consolidation and manufacturing
footprint rationalization. As part of these initiatives, JDE
announced in September a closure of 3 manufacturing facilities --
in Germany, Belgium and China. Further lT platform integration
and some optimization steps still remain to be executed.

JDE's liquidity profile is good, supported by EUR698 million cash
on balance sheet as of 30 June 2016 and an undrawn EUR500 million
RCF. Despite significant costs to be incurred during the next few
quarters related to the integration of JDE and resumed dividend
payment from 2017, the company is expected to generate solid
positive free cash flow.

RATIONALE FOR POSITIVE OUTLOOK

The positive outlook is based on Moody's expectation of
improvement in the company's profitability and leverage as
further growth and synergies come through.

WHAT COULD CHANGE THE RATING UP/DOWN

Positive rating pressure could develop if (1) Moody's adjusted
debt/EBITDA reduces sustainably below 5.0x; and (2) adjusted
retained cash flow (RCF)/net debt increases above high single-
digits.

Negative pressure could materialize if Moody's anticipates that
adjusted debt/EBITDA rises above 6.0x, or if adjusted RCF/net
debt declines to the low single digits.

The principal methodology used in these ratings was Global
Packaged Goods published in June 2013.

Corporate Profile

Headquartered in the Netherlands, Jacobs Douwe Egberts ("JDE") is
a JV formed on July 2, 2015, between Mondelez International, Inc.
(Baa1, stable) ("Mondelez") and Acorn Holdings B.V. ("AHBV").
AHBV is owned by an investor group led by JAB (Joh. A. Benckiser)
Holding Company S.a r.l. (Baa1, negative) ("JAB") in partnership
with BDT Capital Partners, Quadrant Capital Advisors and SociÇtÇ
Familiale d'Investissements. JDE manufactures and sells coffee
and tea products in retail and out-of-home markets in more than
80 countries across Europe, Latin America and Australia. JDE's
key brands include Douwe Egberts, Jacobs, Tassimo, Moccona,
Senseo, L'OR, Kenco, Pilao and Gevalia.



===========
P O L A N D
===========


ARTNEWS SA: Court Declares Firm Insolvent
-----------------------------------------
Reuters reports that a court in Warsaw, Poland, proclaimed
Artnews SA insolvent.

The company filed bankruptcy with liquidation of assets motion in
June, Reuters says.



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


TATFONDBANK PJSC: S&P Assigns 'B' Rating on Proposed LPNs
---------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term issue rating to the
proposed U.S. dollar-denominated senior unsecured loan
participation notes (LPNs) to be issued by PJSC Tatfondbank via
its financial vehicle, TFB Finance Designated Activity Company.

The rating is subject to S&P's analysis of the notes' final
documentation.

S&P rates the proposed LPNs 'B', at the same level as its
long-term counterparty credit rating on Tatfondbank
(B/Negative/B) because the notes meet certain conditions
regarding issuance by special-purpose vehicles (SPVs) set out in
S&P's group rating methodology.

Specifically, S&P rates LPNs issued by an SPV at the same level
as it would rate equivalent-ranking debt of the underlying
borrower (the sponsor) and treat the contractual obligations of
the SPV as financial obligations of the sponsor if these
conditions are met:

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

   -- 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 concludes that the LPNs meet all these
conditions.

The maturity of the issue is to be above one year.  The final
terms of the issue are to be defined at the time of the placement
of notes.



===========
S E R B I A
===========


TREPCA: Kosovo Parliament Votes in Favor of Nationalization
-----------------------------------------------------------
New Europe reports that Kosovo's parliament voted on Oct. 7 to
nationalize a huge mining complex, Trepca, and save it from
bankruptcy; bankruptcy proceedings would have otherwise begun on
Nov. 1.

Creditors have claims against Trepca to the tune of EUR1,4
billion, New Europe discloses.  That is more than 20% of Kosovo's
GDP, New Europe states.  However, the mining complex is one of
the biggest employers in Kosovo, which suffers from 32%
unemployment, New Europe notes.

The vote was not unanimous; 79 out of 120 MPs voted in favor;
Serbian lawmakers boycotted the vote, New Europe relates.

The Prime Minister of Kosovo, Isa Mustafa, proclaimed the mineral
resources "the property of the Republic of Kosovo", New Europe
relays.  The law envisages the government of Kosovo owning 80% of
the company with the miners keeping a 20% share, according to New
Europe.

Belgrade claims 75% ownership of the complex, part of which is in
the Serbia-controlled territory, New Europe says.  Consequently,
Belgrade regards the proclaimed nationalization as theft,
according to New Europe.



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


NUEVA PESCANOVA: In Talks with Debtholders on Debt-Equity Swap
--------------------------------------------------------------
Undercurrent News reports that the management team in charge of
the insolvent Spanish fishing firm Nueva Pescanova sees debt-
holders acceptance to exchange their debt for equity as a first
step to reposition the company.

Undercurrent News relates that debtholders and shareholders are
currently mulling over a plan put in place by the company's new
management to swap debt and equity and increase earnings before
interest, tax and depreciation (ebitda) from about EUR25 million
($27.5 million) now to EUR140 million, managing director Ignacio
Gonzalez told Spanish newspaper Cinco Dias.

"The ball is in their court," the report quotes Mr. Gonzalez as
saying. "What we want is to get this sorted out as quickly as
possible and have a plan by the end of this year that we can
implement."

According to the report, Mr. Gonzalez said the company currently
has debt worth more than EUR1 billion and management are looking
to reduce that to a multiple of between three to six times
ebitda. With the lower debt profile, the company will be a
position to attract another investor or list on the stock
exchange, he said.

Undercurrent News says the first step in that plan would be to
convince debt-holders to take a long-term equity position in the
company, he said. The company also plans to invest EUR125 million
in the next five years on improving in operations.

The fishing company is starting to thrive under new management,
with sales growing at more than 6% a year, Gonzalez said. The new
team has no plans to scrap the Pescanova brand as it is well
perceived by customers, Mr. Gonzalez, as cited by Undercurrent
News, said.

Mr. Gonzalez was appointed as managing director earlier this year
as a group of banks known as the G-7 started to take the
management reins of the once insolvent company, albeit amid a
bitter dispute with the previous owners who still control 20% of
the company's capital, Undercurrent News discloses. The previous
owners have accused the G-7 on setting loans on terms that favor
them and eroding the company's capital.

Mr. Gonzalez said the company under previous management operated
as a group of small fishery companies that worked in silos and
wasn't achieving economies of scale that could be achieved by
working together, Undercurrent News reports.


ROYAL TAPESTRY: Averts Bankruptcy Following Cash Injection
----------------------------------------------------------
Amanda Calvo at Reuters reports that Royal Tapestry Factory, a
centuries-old tapestry factory in Spain, has come back from the
brink of bankruptcy after an injection of public money, a debt
restructuring plan and its biggest order in 200 years -- a German
commission for dozens of tapestries.

The market for hand-woven tapestries and rugs plummeted during
Spain's financial crisis, with key clients like the government
crippled by spending cuts, Reuters relates.

Twenty years ago, the factory changed status from private
business to foundation in the hope of preserving the craft,
Reuters recounts.  But years of losses pushed it close to going
into administration last year, Reuters notes.

"It was now or never," Reuters quotes Maria Pardo, a Madrid city
council official who announced, together with the regional
government and the Ministry of Culture, an increase in annual
subsidies to EUR1.5 million  (US$1.7 million) next year from
900,000 euros this year, as saying.  Prior to 2015, the factory
barely received any public money, Reuters relays.

According to Reuters, the cash enabled the factory, which
restores historical pieces as well as taking on new orders, to
cover delayed salary payments.  A restructuring of bank debt and
a focus on international sales have also helped turn around the
business, Reuters states.

The German regional government of Saxony has recently
commissioned 32 tapestries, the factory's biggest order in the
last two centuries, Reuters discloses.



===========
S W E D E N
===========


VOLVO CAR: Moody's Hikes Corporate Family Rating to Ba2
-------------------------------------------------------
Moody's Investors Service upgraded to Ba2 from Ba3 the corporate
family rating (CFR) and to Ba2-PD from Ba3-PD the probability of
default rating (PDR) of Volvo Car AB. Concurrently, Moody's has
upgraded to Ba2 from Ba3 Volvo Car's senior unsecured notes
rating. The outlook on all ratings has been changed to stable
from positive.

"The upgrade of Volvo Car's ratings reflects the company's strong
operating performance over the past 12 months based on the
successful introduction of the new XC90 and our expectation of
further improvements in the company's credit metrics driven by
several new product launches, including the recently launched S90
and V90, over the next 2 years," says Falk Frey, a Moody's Senior
Vice President and lead analyst for Volvo Car.

RATINGS RATIONALE

Volvo Car's operating performance in H1 2016 has improved further
based on continued unit sales increases (up 10.5% to 256,563 from
232,284 in H1 2015) across all regions driven by the strong
demand for the XC90. This resulted in revenue increases to
SEK83.6 billion (+11.2%) in H1 2016 compared with SEK75.2 billion
in H1 2016 and translated into a strongly improved reported
operating income of SEK5.6 billion versus SEK1.7 billion in H1
2015.

"Following the recently started sale of the new S90 premium sedan
and V90 premium estate cars we anticipate the good momentum to
continue." Moody's said. As both models are based on the same
platform as the XC90 operating leverage should remain high and
consequently result in further profit improvements while these
models are rolled out across all major markets.

Volvo Car's Ba2 CFR continues to be supported by (1) its
well-known brand identity with a long-established position in its
domestic market; (2) a global footprint with a growing presence
in the Chinese market helped by the company's close relationship
with its main shareholder, the Geely group (unrated); (3) the
expectation of rapid sales growth over the next few years on the
back of several new product launches, like the S90 and V90, (4)
recent sizeable investments in a new engine family and modular
platforms, giving the company a more efficient platform for its
new model range; (5) prudent financial policies with no dividends
paid and a recent parent equity injection in the context of the
acquisition in 2015 of an additional stake in the company's
Chinese subsidiaries; and (6) a good liquidity profile.

At the same time, the rating is constrained by (1) Volvo Car's
modest market position and small size compared to other rated
global premium competitors in a fiercely competitive global
passenger car market; (2) its history of low margins with a short
track record of operational improvement; (3) risks related to the
ongoing revival plan in the US where Volvo Car has lost ground in
the years before 2015, though there have been signs of a
turnaround and market share gains there since 2015; and (4) a
degree of execution risks related to the expected fast-paced
model renewal program over the next few years. The renewal
program would make Volvo Car less dependent on only a few models
(in 2015, more than 50% of its volumes were generated by only
three models), but it will require continuous investments for the
development of new models as well as for new technologies, such
as alternative fuel vehicles or autonomous driving.

LIQUIDITY

Volvo's liquidity profile is very strong, underpinned by (1) cash
and cash equivalents, including marketable securities (after a
20% haircut), on the balance sheet of SEK26.4bn as of June 30,
2016, (2) expected positive free cash flow in the next 12 months
and (3) access to a covenanted EUR660 million (approximately
SEK6.2 bn, unrated) back up facility (maturing in June 2019). The
company had sufficient headroom under its financial covenants as
of June 30, 2016. The company's existing resources would be
sufficient to cover its corporate cash requirements over the next
12 months including sustained high levels of capital expenditures
and intra year working capital needs.

The stable outlook is based on Moody's expectation that the
renewal program and subsequent sales and earnings growth will
lead to a further improvement in Volvo Car's credit metrics,
which will position it comfortably in the current rating
category.

What Could Change the Rating -- Up/Down

A further upgrade of Volvo Car's ratings to Ba1 would require
evidence of robust performance over a prolonged period of time
despite a fluctuating market environment mainly driven by a
successful new product roll out as well as the successful
execution of the US revival plan. More specifically an upgrade
could occur should (1) adjusted EBITA margin increase materially
above 6% and remain there on a sustainable level, (2) adjusted
debt/EBITDA ratio maintained sustainably well below 2.0x and (3)
Volvo Cars be able to generate a consistently positive and robust
free cash flow.

The ratings of Volvo Car could come under pressure in case of
deterioration of operational performance and consequently credit
metrics evidenced by (1) an adjusted debt/EBITDA in excess of
2.5x, (2) an EBITA margin below 4x, (3) free cash flow turning
negative for a prolonged period of time or (4) weakening in the
company's liquidity profile.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global
Automobile Manufacturer Industry published in June 2011.

Headquartered in Gothenburg, Sweden, Volvo Car AB is a premium
manufacturer of passenger cars. The company produces and markets
sedans, station wagons and SUV vehicles under the Volvo brand. In
the full year 2015, Volvo sold 503,127 vehicles through 2,300
dealers mostly across Europe, the US and Asia. The company
generated approximately SEK164 billion in revenue and SEK6.6
billion in reported operating profit in 2015 (including the full
contribution from the company's 50%-owned Chinese subsidiaries,
fully consolidated since 2015).



=====================
S W I T Z E R L A N D
=====================


GABLE INSURANCE: In Administration, PwC Takes Over Operations
-------------------------------------------------------------
Ted Bunker at Insurance Insider reports that Gable Insurance AG
went into administration on Oct. 12 as financial regulators in
Liechtenstein placed the ailing insurer's operations into the
hands of PricewaterhouseCoopers' Swiss branch.

Chief executive William Dewsall blamed the financial rigors
imposed by Solvency II as a major cause of the Gable Holdings
unit's downfall, Insurance Insider relates.

Headquartered in Liechtenstein, Gable Insurance AG underwrites
property, casualty, motor, and specialty insurance products in
the United Kingdom, Belgium, Denmark, France, Germany, Iceland,
Ireland, Italy, the Netherlands, Norway, Spain, and Sweden.



=============
U K R A I N E
=============


FERREXPO PLC: Moody's Affirms Caa3 Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service affirmed Ferrexpo Plc's Caa3 Corporate
Family Rating (CFR), Caa3-PD probability of default rating (PDR)
and Caa3 senior unsecured notes rating issued by Ferrexpo Finance
Plc. The outlook on all ratings is changed to stable from
negative.

RATINGS RATIONALE

The stable outlook reflects the improved cash flow generation
profile of the company as a result of the lower capex
requirements and dividend cancellation in 2016. The outlook also
takes into account a stronger business profile with a better
sales mix with 65% Fe pellets, which attract higher pellet
premiums, accounting for 94% of Ferrexpo's production in 2016
compared to 53% in 2014. Moody's also notes the reduction in C1
cost to $25.7/tonne in H1 2016 compared to $31.9/tonne in FY 2015
and $45.9/tonne in FY 2014, which has enabled Ferrexpo to become
one of the lowest cost pellet producers on the global cost curve,
while the iron ore prices have recovered recently and stabilized
at around $55/tonne.

Ferrexpo's financial profile is strong for a Caa3 rating, as it
has a track record of solid credit metrics, with EBIT margin
expected to be maintained above 20% and Moody's adjusted
debt/EBITDA expected to remain below 3.0x in 2016-17. Moody's
said, "Furthermore, we acknowledge a number of credit strengths,
related to Ferrexpo's (1) access to sizeable iron ore reserves
and unexploited iron ore resources adjacent to its existing iron
ore deposits; (2) favorable geographic location (close to the
Black Sea) and in-house logistics capabilities, providing
advantaged access to European and seaborne markets; (3) track
record as a reliable iron ore pellet supplier to leading
international steel producers; and (4) profitable mining and
processing operations, also supported by recent cost reductions
and completion of 'Quality Upgrade Programme' in Q1 2015."

Ferrexpo's ratings are constrained by its weak liquidity profile
and high refinancing risk in 2017 considering the challenging
debt repayment schedule of $202 million in 2017 and $328 million
in 2018. Moody's believes that the internal cash flow generation
combined with the cash balance of $44 million as of June 30,
2016, will not be sufficient to make these repayments. This risk
is further elevated if the iron ore prices decline in 2017
compared to current level of $55/tonne as of 10th October 2016.
The ratings also remain constrained due to the company's exposure
to Ukraine's (Caa3, stable) political, legal, fiscal and
regulatory environment, given that all of its processing and
mining assets are located within the country. Although the
company exports all its production abroad and invoices almost all
of its revenues in US dollars, the company's capacity to service
its corporate debt, which is mostly in US dollars, could be
negatively affected by the potential actions taken by the
Ukrainian government to preserve the country's foreign-exchange
reserves.

The ratings also reflect (1) the group's exposure to a single
commodity, iron ore, whose prices have recovered in the recent
months but are expected to weaken in the coming quarters; (2) the
fact that the company's iron ore resources are concentrated in a
single large deposit in central Ukraine, which increases
production outage risk, albeit this risk is mitigated after the
Yeristovo mine was fully ramped up in 2014; (3) a still high
level of customer concentration risk, with three main customers
accounting for c.37% of the group's revenues in 2015; and (4) a
concentrated ownership structure, with a single individual, Mr.
Zhevago - who is also the CEO - retaining a 50.3% ownership
interest in the company.

LIQUIDITY POSITION

Moody's considers Ferrexpo's liquidity profile as weak. The
company reports cash balance of $44 million in H1 2016 and is
expected to generate positive free cash flow in the range of
$220-240 million in 2016 and $100-150 million in 2017 after capex
requirements of $55-60 million in 2016-17. However, Moody's
believes that internal cash flow generation will not be
sufficient to manage the challenging debt repayment schedule of
$202 in 2017 and $328 million in 2018 which elevates the
refinancing risk of the company. The geographic presence of
Ferrexpo in Ukraine and the current situation in the country adds
to this risk.

STRUCTURAL CONSIDERATIONS

Ferrexpo's major borrowings include a secured $350 million pre-
export finance facility (PXF) and the notes totalling $346
million due in equal instalments in April 2018 and 2019. The
notes are unsecured guaranteed obligations issued by Ferrexpo
Finance Plc and benefit from a suretyship provided by Ferrexpo
Poltava Mining (FPM). The Caa3 rating on the notes in line with
the CFR reflects the weak collateral package of the PXF secured
against sales export contracts which results in the amount of
debt ranking ahead of the notes as not being material.

RATING OUTLOOK

The stable outlook reflects the expectation that the company
should be able to generate positive free cash flow and maintain
low Moody's adjusted debt/EBITDA below 3.0x in 2016-17 however,
needs to manage a challenging debt amortization profile.

WHAT COULD CHANGE THE RATING UP/DOWN

Ratings are likely to be downgraded if the company is not able to
resolve the refinancing risk considering the challenging debt
maturity profile in 2017 and 2018 resulting in a material
deterioration in the liquidity profile or a downgrade of
Ukraine's sovereign rating (Caa3, stable).

Positive pressure could be exerted on the ratings if there is an
improvement in the liquidity profile of the company which reduces
the refinancing risk in 2017 and no material deterioration in its
operating and financial performance.

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

Ferrexpo, headquartered in Switzerland and incorporated in the
UK, is a mid-sized iron ore pellet producer with mining and
processing assets located in Ukraine. The group has total Joint
Ore Reserves Committee Code (JORC) classified resources of 6.7
billion tonnes, around 1.4 billion tonnes of which are proved and
probable reserves. The average grade of Ferrexpo's ore is
approximately 31% Fe. In 2015, the group achieved a pellet
production of 11.7 million tonnes and generated revenues of $907
million in the last twelve months as of June 2016.


MRIYA AGRO: Group Linked to Guta Family Raids Facilities
--------------------------------------------------------
Luca Casiraghi and Volodymyr Verbyany at Bloomberg News report
that Mriya Agro Holding Plc said that a group linked to the
founding Guta family raided its facilities in recent days and is
selling stolen property.

The company said in a statement the group took more than 40
pieces of farm equipment after an appeals court in Kiev removed
an order freezing assets valued at about US$3 million, Bloomberg
relates.  The statement said local police didn't intervene and a
company representative who tried to obstruct the raid was beaten
up, Bloomberg notes.

"If the equipment leaves the territory of Ukraine, it will be
impossible to return it," Bloomberg quotes Mriya as saying in the
statement.

The move escalates a feud between creditors and former
shareholders over the fate of one of Ukraine's biggest
agricultural operations, Bloomberg relates.  According to
Bloomberg, people familiar with the matter said last month
creditors including banks BNP Paribas SA, Credit Agricole SA and
UniCredit SpA took over Mriya last year and are trying to recover
assets they say the former shareholders sold illegally.

                       Debt Restructuring

As reported by the Troubled Company Reporter-Europe on Sept. 21,
2015, Interfax-Ukraine related that Mriya Agroholding plans to
finish talks on debt restructuring with its creditors by 2016.
In August 2014, Mriya reported arrears worth US$9 million of
interest earnings and nearly US$120 million of debt held under
the company's obligations, Interfax-Ukraine disclosed.  Mriya's
total debt equaled US$1.3 billion when the company's bankruptcy
was announced, Interfax-Ukraine noted.

Mriya Agro Holding is a Ukrainian agriculture company.



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


ALBA GROUP: S&P Puts 'B-' CCR on CreditWatch Developing
-------------------------------------------------------
S&P Global Ratings placed its 'B-' long-term corporate credit
rating on ALBA Group plc & Co. KG on CreditWatch with developing
implications.

S&P also placed on CreditWatch developing its 'CCC' issue rating
on ALBA Group's EUR203 million unsecured notes.  The recovery
rating on these notes remains unchanged at '6', indicating S&P's
expectation of negligible recovery (0-10%) in the event of
payment default and without assuming the inflow of potential
disposal proceeds and subsequent deleveraging.

The CreditWatch placement follows ALBA Group's announcement that
it had signed a joint venture agreement with an investment fund
led by the Deng family, the majority shareholder of Chinese
supplier of heavy industrial equipment company Techcent.  The
joint venture, which is subject to antitrust approvals expected
by Jan. 1, 2017, will take over a 60% stake in selected areas of
ALBA Group's high-growth business in China and its services
segment, which alone generated about one-quarter of ALBA Group's
revenues and about one-third of EBITDA in 2015.

The potential joint venture stems from ALBA Group's search
started earlier this year for strategic investors for its
business in China and its services segment.  S&P understands that
ALBA Group and Techcent aim for close collaboration to make the
most of the attractive and high-growth businesses.  S&P will
reassess the company's business risk profile after discussing the
implications of the pending transaction, given the significant
reduction of scale and scope as well as the lost contribution
from the high-margin services operations.

At this stage, no financial details of the transaction have been
disclosed.  To assess the transaction's effect on ALBA Group's
capital structure and liquidity profile, S&P needs to know the
amount of cash proceeds that ALBA would receive and how ALBA
plans to use them, among other details.  Furthermore, S&P notes
that ALBA Group faces a challenging debt maturity schedule, with
about EUR35 million debt amortizations coming due by the end of
the third quarter of 2017 and another EUR200 million due in
October 2017.  S&P also notes the additional EUR203 million of an
unsecured bond due May 2018.  S&P believes that ALBA Group will
use the proceeds from the potential transaction to repay debt,
which should subsequently facilitate the refinancing of
outstanding debt.

As of June 30, 2016, S&P Global Ratings-adjusted debt stood at
about EUR640 million.  S&P's calculation includes approximately
EUR440 million of drawn debt and about EUR200 million in
adjustments for trade receivables sold, operating leases,
unfunded pension obligations, accrued interest, finance leases,
asset retirement obligations, and put options on minority stakes.

"The CreditWatch reflects that we could lower, affirm, or raise
the ratings on ALBA Group when the joint venture is completed and
we obtain more details on the magnitude and use of the
transaction's proceeds, as well as the implications on ALBA
Group's capital structure and liquidity.  We will also take into
account S&P's assessment of the group's business risk profile
following the disposal and the company's approach to refinancing
its mounting debt maturities.  We plan to resolve the CreditWatch
placement in the coming two to three months when the transaction
closes -- unless it is not approved, which we consider unlikely
-- or once sufficient information to assess the transaction's
impact on the group's creditworthiness becomes available," S&P
said.


ED'S EASY DINER: Enters Into Pre-Pack Administration Deal
---------------------------------------------------------
Scott Reid at The Scotsman reports that almost 400 jobs will be
cut across Ed's Easy Diner locations with the closure of 26 of
the chain's restaurants, including four out of the five based in
Scotland.

The cost cutting follows the sale of the brand to the restaurant
arm of food mogul Ranjit Boparan, The Scotsman relays.  According
to The Scotsman, Giraffe Concepts, which is owned by Boparan
Restaurant Holdings, will slash 379 jobs as part of a pre-
packaged administration deal.

A total of 26 of the existing 59 restaurants are to close with
immediate effect, although the agreement also helps secure some
700 posts at the remaining outlets and head office, The Scotsman
discloses.

Restaurants in Aberdeen, Edinburgh's Fort Kinnaird shopping park,
Inverness and Livingston are shutting their doors -- leaving
Glasgow St Enoch as the sole remaining Scottish location, The
Scotsman states.  As part of the sale process, Rob Croxen --
rob.croxen@pmg.co.uk -- and Blair Nimmo -- blair.nimmo@kpmg.co.uk
-- from KPMG were appointed joint administrators to Ed's Easy
Diner Group Limited, Ed's Easy Diner Holdings Limited and Ed's
Easy Diner Overseas Limited, The Scotsman relates.  Immediately
upon their appointment, the joint administrators concluded a pre-
packaged sale of the business and certain assets, The Scotsman
notes.

Ed's Easy Diner is a casual dining chain.


HAWKSMOOR MORTGAGES: Moody's Assign (P)Ba2 Rating to Cl. E Notes
----------------------------------------------------------------
Moody's Investors Service has assigned provisional long-term
credit ratings to the following notes to be issued by Hawksmoor
Mortgages 2016-2 plc:

   -- GBP Class A mortgage backed floating rate notes due
      May 2053, Assigned (P)Aaa (sf)

   -- GBP Class M mortgage backed floating rate notes due
      May 2053, Assigned (P)Aaa (sf)

   -- GBP Class B mortgage backed floating rate notes due
      May 2053, Assigned (P)Aa1 (sf)

   -- GBP Class C mortgage backed floating rate notes due
      May 2053, Assigned (P)A1 (sf)

   -- GBP Class D mortgage backed floating rate notes due
      May 2053, Assigned (P)Baa1 (sf)

   -- GBP Class E mortgage backed floating rate notes due
      May 2053, Assigned (P)Ba2 (sf)

   -- GBP Class X floating rate notes due May 2053, Assigned
      (P)Ca (sf)

Moody's has not assigned ratings to the GBP Class F mortgage
backed zero coupon notes due May 2053, the GBP Class Z1 floating
rate notes due May 2053 and GBP Class Z2 zero coupon notes due
May 2053 or the Certificate.

The portfolio backing this transaction consists of UK
Non-conforming residential mortgage loans originated, among
others, by GE Money Home Lending Limited, GE Money Mortgages
Limited, Igroup2 Limited and Igroup3 Limited. The legal title to
the mortgages will be held by Kensington Mortgage Company Limited
("KMC", not rated).

On the closing date both Virage PL 1 Limited and Virage PL 2
Limited (the "Warehousing Sellers", not rated) will sell the
portfolio to Junglinster S.a.r.l. (the "Seller", not rated). In
turn the Seller will sell the portfolio to Hawksmoor Mortgages
2016-2 plc (the "Issuer").

RATINGS RATIONALE

The ratings take into account the credit quality of the
underlying mortgage loan pool, from which Moody's determined the
MILAN Credit Enhancement and the portfolio expected loss, as well
as the transaction structure and legal considerations. The
expected portfolio loss of [3]% and the MILAN required credit
enhancement of [16]% serve as input parameters for Moody's cash
flow model and tranching model, which is based on a probabilistic
lognormal distribution.

Portfolio expected loss of [3]%: this is based on Moody's
assessment of the lifetime loss expectation taking into account:
(i) the weighted average CLTV of around [71.76]% on a non-indexed
basis; (ii) the collateral performance to date along with an
average seasoning of [9.95] years. [9.29]% of the pool is in
arrears as of the cut off date, of which [3.83]% is more than 60
days in arrears; (iii) the current macroeconomic environment and
our view of the future macroeconomic environment in the UK, and
(iv) benchmarking with similar transactions in the UK Non-
conforming sector.

MILAN CE of [16]%: this is lower than the UK Non-conforming RMBS
sector average and follows Moody's assessment of the loan-by-loan
information taking into account the historical performance
available and the following key drivers: (i) the relatively low
weighted average CLTV of [71.76]% on a non-indexed basis; (ii)
the high proportion of self-employed borrowers at [31.0%]; (iii)
the presence of [30.22%] loans where the borrower self-certified
its income; (iv) around [58.5]% of interest only loans; (v)
borrowers with adverse credit history accounting for [12.7%] of
the pool; (vi) the level of arrears around [9.29%] as of the cut
off date, and (vii) benchmarking with other UK Non-conforming
RMBS transactions.

At closing, the mortgage pool balance will consist of GBP million
of loans. The total reserve fund will be funded to [3.0]% of the
initial mortgage pool balance and will amortize to [3.0]% of the
outstanding balance of Classes A to F notes subject to a floor of
[1.5]% of the outstanding balance of Classes A to F notes. The
total reserve fund will be split into the Liquidity Reserve Fund
and the Non Liquidity Reserve Fund. The Liquidity Reserve Fund
Required Amount will be equal to [2.5]% of Class A and M
outstanding amount and will be available only to cover senior
expenses and Class A and M interest. The Liquidity Reserve Fund
is floored at [1%] of the initial principal balance of Classes A
and M and will be released only after Class M is fully repaid.
The Non Liquidity Reserve Fund will be equal to the difference
between the total reserve fund and the Liquidity Reserve Fund,
and will be used to cover interest shortfalls and to cure PDL on
Classes A to E.

Operational risk analysis: KMC will be acting as servicer of
record, delegating servicing responsibilities to Acenden Limited
(not rated). The issuer will delegate to KMC as the legal title
holder the responsibility over certain servicing policies and
setting of interest rates. In order to mitigate the operational
risk, Structured Finance Management Limited (not rated) will act
as a back-up servicer facilitator, and Wells Fargo Bank
International (not rated) will be acting as a back-up cash
manager from close. To ensure payment continuity over the
transaction's lifetime the transaction documents incorporate
estimation language whereby the cash manager can use the three
most recent servicer reports to determine the cash allocation in
case no servicer report is available. The transaction also
benefits from principal to pay interest for the Class A notes and
for Class B to E notes, subject to certain conditions being met.

Interest rate risk analysis: [95.8]% of the portfolio pay a
floating rate of interest linked to Barclays Bank Base Rate,
[2.91]% are SVR linked, while the remaining [1.29]% pay a fixed
rate with a weighted-average time to reset of almost [10] months.
The interest rate risk in the transaction will be unhedged.
Moody's has taken into consideration the absence of an interest
rate swap in its cash flow modelling.

The provisional ratings address the expected loss posed to
investors by the legal final maturity of the Notes. Moody's
issues provisional ratings in advance of the final sale of
securities, but these ratings represent only Moody's preliminary
credit opinions. Upon a conclusive review of the transaction and
associated documentation, Moody's will endeavor to assign
definitive ratings to the Notes. A definitive rating may differ
from a provisional rating. Other non-credit risks have not been
addressed, but may have a significant effect on yield to
investors.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
September 2016.

The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage. Please see Moody's Approach to Rating RMBS Using the MILAN
Framework for further information on Moody's analysis at the
initial rating assignment and the on-going surveillance in RMBS.

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

Significantly different loss assumptions compared with our
expectations at close due to either a change in economic
conditions from our central scenario forecast or idiosyncratic
performance factors would lead to rating actions. For instance,
should economic conditions be worse than forecast, the higher
defaults and loss severities resulting from a greater
unemployment, worsening household affordability and a weaker
housing market could result in a downgrade of the ratings.
Deleveraging of the capital structure or conversely a
deterioration in the notes available credit enhancement could
result in an upgrade or a downgrade of the ratings, respectively.

Stress Scenarios:

Moody's Parameter Sensitivities: If the portfolio expected loss
was increased from [3]% to [6]% of current balance, and the MILAN
CE was increased from [16]% to [22.4]%, the model output
indicates that the Class A notes would still achieve Aaa(sf)
assuming that all other factors remained equal. Moody's Parameter
Sensitivities quantify the potential rating impact on a
structured finance security from changing certain input
parameters used in the initial rating.

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed.

The analysis assumes that the deal has not aged and is not
intended to measure how the rating of the security might migrate
over time, but rather how the initial rating of the security
might have differed if key rating input parameters were varied.
Parameter Sensitivities for the typical EMEA RMBS transaction are
calculated by stressing key variable inputs in Moody's primary
rating model.


INFINIS ENERGY: Moody's Cuts Corporate Family Rating to B3
----------------------------------------------------------
Moody's Investors Service downgraded to B3 from B1 the corporate
family rating (CFR) of Infinis Energy Limited. Concurrently,
Moody's has downgraded Infinis's probability of default rating
(PDR) to B3-PD from Ba3-PD. Finally, Moody's has affirmed the B1
rating on the GBP350 million unsecured notes due 2019 issued by
the group's landfill gas generation business, Infinis Plc, and
changed the LGD assessment to LGD3 from LGD4. The outlook on all
ratings remains negative.

RATINGS RATIONALE

RATIONALE FOR DOWNGRADE OF CFR

The downgrade of Infinis's CFR and PDR reflects (1) that the
consolidated group's leverage has been significantly above
guidance for the previous rating level since February 2016
(debt / EBITDA was 6.7x at 31 March 2016); and (2) the lack of
demonstrable progress on the sale of one or both of the group's
two businesses (landfill gas and onshore wind), which entails
that leverage could remain high for longer than previously
expected. Although separate sales processes are underway, Moody's
believes that there is significant uncertainty over the timing of
the transaction(s) being concluded.

The revised B3 CFR and B3-PD rating also reflect that the group
has insufficient liquidity to continue as a going concern beyond
28 December 2016 and the maturity of a GBP205 million bridge
facility at the Infinis group level, for which a three month
extension option has recently been exercised. This reflects that
the group's cash and cash equivalents balance at end September
2016 is only around GBP90 million, of which Moody's estimate only
GBP50 million is accessible -- with the residual trapped in the
ring-fenced landfill gas business even after all permitted
carve-outs are utilized. Moody's considers that whilst both
businesses should have positive equity value, it is likely that
only a sale of the wind operations, in isolation, before the end
of December 2016 would meet the group's liquidity shortfall
unless the current bridge facility is further extended or
replaced.

The bridge facility was entered into in December 2015 to finance
the group's immediate parent, Monterey Capital II S.a.r.l
(Monterey), acquisition of the remaining share capital they did
not already own in December 2015 (31.5% for c. GBP175 million
excluding transaction costs and associated fees). This facility
was pushed down to the level of the Infinis group when it was
novated from Monterrey to Infinis Capital Limited in February
2016, increasing the group's consolidated leverage by over 30%.
In addition, the terms of the bridge facility required the
group's GBP50 million revolving credit facility (RCF) to be fully
repaid and wound up, removing an external source of liquidity for
the group.

Infinis's B3 CFR also positively reflects, (1) the group's market
position as a leading renewable electricity generator in the UK;
(2) the relatively stable and predictable nature of the group's
principal renewable energy support mechanisms, controlled by the
UK Government, under which almost all of the group's output is
sold under; and (3) its low marginal cost generating fleet, which
provides consistent load factors. However, the rating is
constrained by (1) the group's small scale relative to peers
rated under Moody's Unregulated Utilities and Unregulated Power
Companies methodology; (2) reduced predictability about some
elements of future revenues, e.g. embedded benefits; (3) the
reliance on declining landfill gas reserves, which would be
accentuated in case of a disposal of the wind assets; and (4) a
high level of leverage as discussed above.

RATIONALE FOR AFFIRMATION OF B1 RATING ON NOTES

The affirmation of the B1 rating on the notes, with LGD
assessment of LGD3, issued by Infinis Plc principally reflects
the position of the landfill gas business within the group
structure, in particular the ring-fenced structure around the
business. If all the covenants and permitted carve-outs allowed
under the bond indenture are exercised in Q3 FY2017 to upstream
cash to the Infinis group to help manage their liquidity
shortfall, Moody's estimates Infinis Plc's net debt / EBITDA
would increase from just over 3.0x at 30 June 2016 to over 3.5x
resulting in a materially weaker financial profile. There is no
mandatory redemption of the notes on change of control if net
debt to EBITDA is below 3.5x.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects (1) execution risk around extending
the bridge facility and/or achieving sales of the onshore wind
and/or landfill gas businesses before year-end 2016; and (2) lack
of clarity regarding the group's future financial policy.

WHAT COULD CHANGE THE RATING UP/DOWN

Given the negative outlook, upwards rating pressure is not
anticipated in the medium term.

Assuming that the group maintains its current business mix, the
rating outlook could be stabilized if the group (1) puts in place
sustainable liquidity arrangements; and (2) adopts a financial
policy that will allow the group to maintain ratios in line with
the current guidance of debt to EBITDA trending below 7.5x.

Conversely, Moody's could downgrade the ratings if no new
liquidity arrangements were put in place or this ratio guidance
would not be met.

Finally, separation of the landfill gas and wind businesses could
result in a higher business risk profile and Moody's ratio
guidance could be reviewed in such circumstances given the
business profile of the surviving business.

The principal methodology used in these ratings was Unregulated
Utilities and Unregulated Power Companies published in October
2014.

Infinis Energy Limited, based in Northampton, UK, is a holding
company focused on electricity generation from renewable sources.
The company is owned by funds managed by private equity group
Terra Firma. As at March 31, 2016, the Infinis Energy Limited
group had 618 megawatts (MW) of generation capacity. The landfill
gas business accounts for 301MW (49%) while the onshore wind
business accounts for 317MW (or 51%).


PUNCH TAVERNS: S&P Lowers CCR to 'CCC+', Outlook Remains Stable
---------------------------------------------------------------
S&P Global Ratings lowered its long-term corporate credit rating
on U.K. tenanted pub operator Punch Taverns PLC to 'CCC+' from
'B-'.  The outlook remains stable.

At the same time, S&P lowered its long-term issue rating on the A
tranches of Punch's notes -- issued by both subsidiaries Punch
Taverns Finance PLC (Punch A) and Punch B Taverns Finance B Ltd.
(Punch B) -- to 'B' from 'B+'.  The recovery rating is unchanged
at '1', indicating S&P's expectation of very high recovery
(90%-100%) in the event of a payment default.

In addition, S&P lowered its long-term issue rating on Punch A's
M3 notes to 'CCC+' from 'B-'.  The recovery rating is unchanged
at '3', indicating S&P's expectation of meaningful recovery (50%-
70%) in the event of a payment default.

The downgrade reflects S&P's view that despite the completion of
its large asset disposal program, S&P expects Punch's adjusted
debt to EBITDA to remain high at about 9x for the financial year
ending Aug. 31, 2016 (FY2016) and FY2017.  Combined with limited
deleveraging prospects, S&P views Punch's high leverage as
unsustainable in the long term.

Following debt restructuring in October 2014, Punch has been
reducing debt by using proceeds from the disposal of its non-core
pubs to meet scheduled amortization payments and to make debt
pre-payments.  However, S&P expects deleveraging to slow down
meaningfully as the disposal of more profitable pubs going
forward would also reduce earnings.  S&P forecasts the group's
adjusted debt to EBITDA to remain high at around 9.2x in FY2016
and 9.4x in FY2017.  S&P considers such a highly leveraged
capital structure to be unsustainable for Punch in the long term,
notwithstanding the overall long-term maturity profile.

In addition, Punch's two major subsidiaries, Punch A and Punch B,
are governed by several financial covenants that could trigger
default in the event of covenant breach.  This is exacerbated by
the fast pace at which these financial covenants are set to
tighten, with stricter requirements every quarter.  S&P
understands that management intends to scale down its disposal
plan to about 100 Mercury pubs per year.  With lower disposal
proceeds to support cash flow, S&P anticipates that the group's
financial covenant headroom could come under pressure.
Nevertheless, S&P understands that management has the flexibility
to reduce capital expenditure (capex) and dispose of additional
pubs in order to protect covenant headroom if necessary.

Punch has a tenant operated business model, in which most pub
tenants are tied to purchasing drinks from the group in return
for favorable rent.  S&P believes that Punch's business model
will be challenged by the new Market Rent Only (MRO) regulations,
where pub tenants have the option to purchase all products from
alternative suppliers during their next rent renewals.  As drinks
sales account for the majority of the group's revenue, S&P views
that the MRO could have a negative impact on Punch's earnings and
cash flow.  Nevertheless, S&P understands that most rent renewals
will occur over the course of five years, allowing the group to
slowly adapt to the MRO regulations.

In response to the MRO regulations, Punch intends to shift more
of its pubs to retail contracts upon rent renewals or when the
sites are returned to Punch.  Under these contracts, Punch would
manage the majority of the pub operations, and the pub tenants
would receive a portion of sales to cover labor costs and certain
operating expenses.  While S&P believes that this could help
mitigate some of the negative effects of MRO, this initiative is
relatively new and it will take time before retail contracts
become a representative portion of the group's operations.
Nevertheless, S&P understands that under the free-of-tie rent-
only option, the rent would be set at market rate, which would be
higher than that in the drinks-tied business model.

In S&P's view, market conditions remain challenging for the U.K.
pubs sector; beer consumption has been declining for several
years as consumers are focusing more on healthier lifestyles.  In
addition, S&P views MRO regulations as mainly affecting tenanted
pub operators, as opposed to managed pub operators.  Negative
market trends have hampered tenanted pub operators in past years
and S&P expects the number of tenanted pubs will continue to
reduce every year.  Since Punch began its disposal program in
2010 and having demerged with Spirit, the group has reduced the
number of pubs to about 3,300 from about 5,400.

In S&P's base case, it assumes:

   -- U.K. real GDP growth of around 1.5% in 2016 and 0.9% in
      2017.

   -- U.K. consumer price index inflation of 0.9% in 2016 and
      2.2% in 2017.

   -- A revenue drop of about 8%-9% in FY2016 and 3%-4% in
      FY2017, largely reflecting the full-year impact of major
      pub estate disposals in 2015.  Adjusted EBITDA margin of
      around 43% in FY2016 and FY2017, supported by continued
      disposal of underperforming pubs and the slow pace of
      development of the retail contract business model.

   -- Disposal of around 100 Mercury pubs per year contributing
      about GBP30 million to cash flow.

   -- Capex of about GBP50 million in each of FY2016 and FY2017.
      This is in accordance with the management plan to maximize
      capex within the limits of strict covenant requirements.

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

   -- S&P's lease adjusted debt-to-EBITDA of about 9.2x in FY2016
      and 9.4x in FY2017.

   -- S&P's EBIDTAR cash interest coverage (defined as reported
      EBITDA before deducting rent covering cash interest plus
      rent costs) of around 1.4x-1.5x in 2016 and 2017.

   -- Neutral free operating cash flow in FY2016 and FY2017 as
      capex and high interest payment consumes most earnings.

The stable outlook reflects S&P's view that despite covenant
headroom being under pressure, it anticipates that Punch will
have sufficient liquidity sources to cover uses over the next 12
months.

S&P could consider a negative rating action if it views that a
breach of financial covenants, a debt restructuring, or an
exchange offer appears inevitable.  S&P would see such events as
distressed and tantamount to a default.  However, as far as S&P
know, the group is currently not taking any tangible steps in
this direction.

Due to the challenging trading environment and high debt level,
S&P sees limited ratings upside in the near term.  Nevertheless,
S&P could raise the long-term rating if Punch were able to
establish a sustainable deleveraging trend through additional
large asset disposals and improved operating performance, such
that S&P's adjusted debt to EBITDA improved to a sustainable
level.  An upgrade would also be contingent on Punch maintaining
EBITDA headroom on financial covenants sustainably above 15%.


TITAN EUROPE 2007-2: S&P Lowers Rating on Cl. A2 Notes to 'CCC'
---------------------------------------------------------------
S&P Global Ratings lowered to 'CCC (sf)' from 'B+ (sf)' its
credit rating on Titan Europe 2007-2 Ltd.'s class A2 notes.

The downgrade follows S&P's review of the underlying loan's
credit quality.

Since closing in June 2007, 15 loans have repaid, with six
experiencing total losses of EUR20.05 million.  In this
transaction, principal losses materialize through non-accruing
interest amounts.  The transaction is now backed by three loans
secured by 65 commercial properties located throughout Europe.

            MPC LOAN (76% OF THE SECURITIZED LOAN POOL)

The securitized loan represents the senior portion of a whole
loan, which includes pari passu debt and other junior debt.  The
loan failed to repay at loan maturity in January 2012 and is in
special servicing.

The loan is secured by 59 multi-tenanted office properties (down
from 99 at closing) in the Netherlands.

The servicer last valued the portfolio in September 2013 at
EUR271.8 million, which reflects a whole loan-to-value (LTV)
ratio of 292%.

S&P has assumed principal losses on this loan in its 'B' case
rating stress scenario.

           COBALT LOAN (14% OF THE SECURITIZED LOAN POOL)

This loan, which was fully securitized at closing, is the second
largest in the pool and has an outstanding principal balance of
EUR64.8 million.  The loan failed to repay at loan maturity in
April 2014 and is in special servicing.

The loan is currently secured on a portfolio of five retail
properties in Finland.

The portfolio is currently 82% let, with a weighted-average
unexpired lease term of 2.45 years (until first break).  The top
five tenants account for 82% of the income, with the largest
tenant accounting for 41% of the income.

The portfolio was last valued in April 2016 at EUR23 million.
The updated valuation reflects a securitized LTV ratio of 360%.

S&P has assumed principal losses on this loan in its 'B' case
rating stress scenario.

       SKODUV PALACE LOAN (10% OF THE SECURITIZED LOAN POOL)

The securitized loan has an outstanding balance of
EUR46.1 million.  There is additional debt of EUR56.2 million,
which does not form part of this transaction.  The loan failed to
repay at loan maturity in April 2012 and is in special servicing.

The loan is secured by a single office property located in
Prague's central business district.  The property is 100%
occupied by the municipal government of the City of Prague under
a lease that expires in April 2028.  S&P understands that, as of
April 2016, a re-gear of the lease has been agreed at an adjusted
annual net rent equal to EUR5.5 million per annum.  This reflects
a reduction of 33% of the annual rent.

The property was last valued in April 2016 at EUR81.2 million.
The updated valuation reflects a securitized LTV ratio of 52%,
and a whole LTV ratio of 116%.

S&P has assumed principal losses on this loan in its 'B' case
rating stress scenario.

                           RATING ACTIONS

S&P's ratings on Titan Europe 2007-2's notes address the timely
payment of interest and repayment of principal not later than the
April 2017 legal final maturity date.

Although S&P considers the available credit enhancement for the
class A2 notes to be sufficient to mitigate the risk of losses
from the underlying loans in higher rating stress scenarios, S&P
believes that this class of notes has become increasingly
vulnerable to timing risk relating to the repayment of principal
no later than the legal final maturity date, now six months away.
As a result, the class A2 notes face at least a one-in-three
likelihood of default, in S&P's opinion.  Therefore, S&P has
lowered to 'CCC (sf)' from 'B+ (sf)' its rating on the class A2
notes, in line with S&P's criteria for assigning 'CCC' category
ratings.

Titan Europe 2007-2 is a true sale transaction that closed in
June 2007 and was backed by a pool of 18 loans secured against
European commercial properties.  Since closing, 15 loans have
repaid and the outstanding note balance has reduced to EUR460.7
million from EUR1.67 billion.

RATINGS LIST

Titan Europe 2007-2 Ltd.
EUR1.669 bil commercial mortgage-backed floating-rate notes
                                          Rating
Class             Identifier              To            From
A2                XS0302921381            CCC (sf)      + (sf)



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Alfred Malabre's personal perspective on the U.S. economy over
the past four decades is firmly grounded in his experience and
knowledge. Economics Editor of The Wall Street Journal from 1969
to 1993 and author of its weekly "Outlook" column, Malabre was in
a singular position to follow the U.S. economy in recent decades,
have access to the major academic and political figures
responsible for economic affairs, and get behind the crucial
economic stories of the day. He brings to this critical overview
of the economy both a lively, often provocative, commentary on
the picture of the turns of the economy. To this he adds sharp
analysis and cogent explanation.

In general, Malabre does not put much stock in economists. "In
sum, the profession's record in the half century since Keynes and
White sat down at Bretton Woods [after World War II] provokes
dismay." Following this sour note, he refers to the belief of a
noted fellow economist that the Nobel Prize in this field should
be discontinued. In doing so, he also points out that the Nobel
for economics was not one originally endowed by Alfred Nobel, but
was one added at a later date funded by the central bank of
Sweden apparently in an effort to give the profession of
economists the prestige and notice of medicine, science,
literature and other Nobel categories.

Malabre's view of economists is widespread, although rarely
expressed in economic circles. It derives from the plain fact
that modern economists, even hugely influential ones such as John
Meynard Keynes, are wrong as many times as they are right. Their
economic theories have proved incomplete or shortsighted, if not
basically wrong-headed. For example, Malabre thinks of the
leading economist Milton Friedman and his "monetarist colleagues"
as "super salespeople, successfully merchandising.an economic
medicine that promised far more than it could deliver" from about
the 1960s through the Reagan years of the 1980s. But the author
not only cites how the economy has again and again disproved the
theories and exposed the irrelevance of wrong-headedness of the
policy recommendations of the most influential economists of the
day. Malabre also lays out abundant economic data and describes
contemporary marketplace and social activities to show how the
economy performs almost independently of the best analyses and
ideas of economists.

Malabre does not engage in his critiques of noted economists and
prevailing economic ideas of recent decades as an end in itself.
What emerges in all of his consistent, clear-eyed, unideological
analysis and commentary is his own broad, seasoned view of
economics-namely, the predominance of the business cycle. He
compares this with human nature, which is after all the substance
of economics often overlooked by professional and academic
economists with their focus on monetary policy, exchange rates,
inflation, and such. "The business cycle, like human nature, is
here to stay" is the lesson Malabre aims to impart to readers
interested in understanding the fundamental, abiding nature of
economics. In Lost Prophets, in language that is accessible and
jargon-free, this author, who has observed, written about, and
explained economics from all angles for several decades,
persuasively makes this point.

In addition to holding a top position at The Wall Street Journal,
Malabre is also the author of the books, Understanding the New
Economy and Beyond Our Means, which received the George S. Eccles
Prize from the Columbia Business School as the best economics
book of 1987.



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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.


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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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