TCREUR_Public/161019.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Wednesday, October 19, 2016, Vol. 17, No. 207


                            Headlines


C Y P R U S

IG SEISMIC: S&P Keeps 'B-' CCR on CreditWatch Negative


F R A N C E

BISOHO SAS: S&P Assigns 'B' Long-term CCR, Outlook Stable
STX OFFSHORE: Court Mulls Sale of French Unit Sale This Week


G R E E C E

GREECE: Moody's Affirms Caa3 Government Bond Rating


H U N G A R Y

ZSOLNAY: Bachari's Request to Exclude Minority Shareholder Tossed


I R E L A N D

AVOCA CLO XVII: Moody's Assigns (P)B2 Rating to Class F Notes
AVOCA CLO XVII: Fitch Assigns 'B-(EXP)' Rating to Class F Notes
CARLYLE GLOBAL 2016-2: Moody's Rates EUR11.5M Class E Notes (P)B2
SCFI RAHOITUSPALVELUT: Fitch Affirms 'BB+sf' Rating on Cl. E Debt

* IRELAND: 6 Galway-based Hospitality Firms Declared Insolvent


K A Z A K H S T A N

EKIBASTUZ GRES-1: Fitch Affirms 'BB+' LT Foreign Currency IDR


L U X E M B O U R G

EIRCOM FINCO: Moody's Assigns B2 Rating to Term Loan B5
GSC EUROPEAN II: Moody's Cuts Ratings on 3 Note Classes to Caa3


N E T H E R L A N D S

JACOBS DOUWE: S&P Assigns 'BB' Rating to EUR1BB Sr. Sec. Loan
TIKEHAU CLO II: Moody's Assigns (P)B2 Rating to Class F Notes


R O M A N I A

SWAN OFFICE: Smartown Buys Office Project for EUR30.3 Million


R U S S I A

FIRST COLLECTION: S&P Affirms 'B-' Counterparty Credit Rating
KARELIA: Fitch Affirms 'B+' Long-term Issuer Default Ratings
MOSCOW CITY: S&P Affirms 'BB+' Issue Rating on EUR407-Mil. LPNs
MOSCOW REGION: Fitch Affirms 'BB+' Long-Term IDR
ROSNEFT OJSC: S&P Affirms 'BB+' CCR, Outlook Stable

SIBERIAN COAL: Moody's Assigns Then Withdraws Ba3 CFR


S P A I N

BBVA-6 FTPYME: S&P Affirms D Rating on Class C Notes
PESCANOVA SA: Successor Alleges Breaches of Securities Law


U N I T E D   K I N G D O M

BHS GROUP: Green's Lawyers Balk at MPs' Report on Collapse
DICKENS WORLD: Shuts Doors Due to Financial Issues
ENQUEST PLC: Moody's Affirms Caa1 Corporate Family Rating
EXHIBIT: Trading Woes Prompt Administration, 100 Jobs Affected
JOLLY GOOD: Calls In Liquidator, Nov. 3 Creditors' Meeting Set

STANDARD CHARTERED: Fitch Cuts Capital Securities Rating to 'BB+'
WORTHINGTON GROUP: Proposes Company Voluntary Arrangement

* UK: Welsh Tech Firms 'at Increased Risk of Insolvency'


                            *********



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C Y P R U S
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IG SEISMIC: S&P Keeps 'B-' CCR on CreditWatch Negative
------------------------------------------------------
S&P Global Ratings said that it was keeping its 'B-' long-term
corporate credit ratings on Cyprus-headquartered IG Seismic
Services PLC (IGSS) and its Russia-domiciled core subsidiary
GEOTECH Seismic Services JSC on CreditWatch negative.

Similarly, S&P is keeping its 'ruBBB-' Russia national scale
rating on GEOTECH on CreditWatch with negative implications.

S&P placed the ratings on CreditWatch on July 22, 2016.

"We are maintaining the CreditWatch on the ratings because we do
not have full clarity on IGSS' liquidity position after it
completes the proposed exchange of its bonds.  Earlier this
month, the company offered bondholders an exchange of the Russian
ruble (RUB) 3 billion (about $48 million) bonds maturing in 2018
(with a put option in October 2016) for a similar instrument with
amortizing payments and maturing in 2019.  The exchange offer is
proposed at par and the company is offering bondholders a higher
coupon rate in line with the current market conditions.  Although
we generally view IGSS' liquidity as weak, we understand that the
company has a commitment from its key lending bank Otkritie Bank
to provide additional liquidity for the full amount of the bond
if necessary.  Therefore, we view this offer as opportunistic and
not distressed," S&P said.

"That said, we still have limited visibility on the company's
capital structure after the transaction, since it depends on the
percentage of bondholders that accept the exchange offer as well
as the company's ultimate debt structure and repayment schedule.
We view IGSS' liquidity management as very aggressive because the
company has left the refinancing arrangements until the last
moment, which it has done several times over the past two years.
However, we note a track record of support from Otkritie Bank,
which now accounts for about 75% of the company's overall debt.
The bank has already stepped in in a similar situation earlier
this year, providing liquidity and covenant waivers to IGSS," S&P
noted.

IGSS' operating and financing performance remains under pressure
from Russia's depressed seismic market, which is characterized by
lower volumes and prices on services.  S&P expects IGSS' volumes
in 2016 will be broadly similar to those in 2015, with modest
recovery starting in 2017.  Nevertheless, S&P notes the company's
substantially decreased capital expenditure in response to the
lower EBITDA and funds from operations (FFO), which S&P expects
will result in FFO to debt of about 10% during 2016-2017.  While
S&P sees leverage as high, it thinks IGSS' credit profile could
remain commensurate with the 'B-' rating, provided that liquidity
does not weaken further.

The rating on IGSS incorporates S&P's view of the inherent
cyclicality of the seismic services sector.  At the same time,
S&P notes the company's leading position in the domestic market
and its comparably new and modern fleet, which continue to
support S&P's view on IGSS' business profile.

S&P aims to resolve the CreditWatch within the next month, once
it has obtained clarity on the results of the bondholders' vote
on the exchange offer and the availability of financing from
Otkritie Bank.  S&P also aims to obtain IGSS' financial and
operating results for the first half of 2016, which the company
has not yet issued.

S&P could lower the rating to the 'CCC' category if it concludes
that the company's liquidity after completion of the debt
exchange poses the risk of a near-term default, or if S&P assess
its capital structure as unsustainable.  S&P could also lower the
rating if IGSS' results for the first half of 2016 are materially
weaker than S&P's current expectations, with low prospects for
near-term recovery.

S&P could affirm the rating if it concludes that the company's
post-exchange debt maturity profile is manageable.  This could
happen if the bondholders accept the exchange offer and the
company maintains access to financing from Otkritie Bank.  A
rating affirmation would also depend on IGSS' credit metrics
staying in line with S&P's base-case scenario, notably FFO to
debt not materially below 10%.


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F R A N C E
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BISOHO SAS: S&P Assigns 'B' Long-term CCR, Outlook Stable
---------------------------------------------------------
S&P Global Ratings said that it assigned its 'B' long-term
corporate credit rating to BiSoho S.A.S., the parent of France-
based apparel retailer Groupe SMCP.  The outlook is stable.

At the same time, S&P assigned its 'B' issue rating to BiSoho's
EUR471 million senior secured notes (which comprise EUR371
million fixed rate and EUR100 million floating rate notes).  The
recovery rating on these instruments is '3', reflecting S&P's
expectation of meaningful recovery in the event of default in the
lower half of the 50%-70% range.

S&P also assigned a 'BB-' issue rating to BiSoho's EUR50 million
super senior secured revolving credit facility (RCF).  The
recovery rating on this instrument is '1', reflecting S&P's
expectation of very high (90%-100%) recovery in the event of
default.

The ratings are in line with the preliminary ratings which S&P
originally assigned on May 6, 2016.

S&P also affirmed and then withdrew its 'B' long-term corporate
credit rating on KKR Retail Partners following the repayment of
the company's EUR290 million senior secured notes.

The ratings reflect S&P's view of BiSoho's highly leveraged
financial risk profile and fair business risk profile, which are
in line with the underlying SMCP business to be acquired by
BiSoho from KKR Retail Partners.  BiSoho, an entity controlled by
Shandong Ruyi Technology Group Co. Ltd. (Shandong Ruyi Group; not
rated), is the holding company that will be used as the
investment vehicle to acquire a majority stake in SMCP.

"Importantly, we view the change of ownership as generally
neutral from a credit perspective.  We do not view the credit
profile of the broader Shandong Ruyi Group as a constraint, nor
does it provide any additional uplift to SMCP's stand-alone
credit profile.  In our view, SMCP is a subsidiary with a
moderately strategic level of importance to its ultimate parent,
Shandong Ruyi Group.  We view the SMCP investment as beneficial
to Shandong Ruyi Group's longer-term strategy, providing the
group with investment diversification into the European market,
while also providing the potential for some synergistic benefits
such as supporting SMCP's continued penetration strategy into
Asia," S&P said.

In October 2016, BiSoho completed its acquisition of SMCP and the
refinancing of its current debt structure by issuing EUR471
million senior secured notes (split between EUR371 million fixed
and EUR100 million floating rate notes) together with a
EUR50 million RCF to support liquidity.  In the same transaction,
SMCP's existing EUR290 million senior notes due 2020, issued by
KKR Retail Partners, were fully redeemed.

Following the refinancing transaction, under S&P's base case, it
forecasts that SMCP's financial metrics will result in a highly
leveraged financial risk profile, with S&P Global Ratings-
adjusted debt to EBITDA of about 5.5x-6.0x.  The proposed capital
structure includes EUR471 million senior secured notes and a
EUR50 million RCF, which will be used to support the company's
liquidity.  Also forming part of the proposed capital structure
is a EUR300 million payment-in-kind (PIK) shareholder loan
instrument which S&P includes as debt in its ratio calculations--
excluding the PIK instrument, SMCP's reported debt to EBITDA is
expected to be about 4.5x in fiscal 2016 (ending Dec. 31, 2016).

S&P continues to assess SMCP's business risk profile as fair,
albeit at the lower end of the category.  The group operates in
the highly fragmented affordable luxury segment, bearing inherent
fashion risk.  The company aims to minimize this risk by focusing
on already-existing trends, however, the company is exposed to
fashion trends, including the risk of missing or adopting a trend
too late. Partially mitigating this risk is SMCP's underlying
business model, weighted heavily toward directly operated stores,
which represent 94% of sales.  This provides the company with
greater control and responsiveness, allowing it to capitalize on
market trends and meet customer demand.

S&P's base case assumes:

   -- A slow but gradually growing French economy, with S&P's
      forecast of GDP growth of 1.3% in 2016 and 1.2% in 2017;
   -- Continued execution of the store network expansion
      strategy, with the opening of about 90 new points of sale
      annually;
   -- Positive like-for-like sales, together with store network
      expansion, enabling the company to achieve double-digit
      revenue growth over the next two years;
   -- Capital expenditure (capex) of EUR35 million-EUR45 million
      per year; and
   -- Continued cost control supporting the sustainability of
      EBITDA margins at about 26% on an adjusted basis.

Based on these assumptions, and following the expected completion
of the refinancing transaction, S&P arrives at these credit
measures over 2016 and 2017:

   -- Funds from operations (FFO) to debt of between 8%-12% in
      2016 and 2017;
   -- Adjusted debt to EBITDA of between 5.5x-6.0x in 2016,
      improving to between 5.2x-5.7x in 2017; and
   -- FOCF to debt of between 5%-10% in 2016 and 2017.

The stable outlook reflects S&P's view that the company will
continue to successfully execute its store expansion strategy,
which will be supported by positive like-for-like sales growth.
This is expected to translate into continued earnings growth and
positive FOCF generation, enabling the company to achieve EBITDA
interest coverage of about 2x.  It also reflects S&P's view that
the proposed change of ownership will not represent a major
change or have any detrimental impact on SMCP's strategy,
operations, or financial profile.

The ratings could be lowered should SMCP's store expansion
strategy -- particularly into new regions -- falter, resulting in
materially lower earnings and cash generation.  Any material
deterioration in profitability could also lead S&P to revise its
assessment of SMCP's business risk profile to weak from fair.  A
negative rating action could arise from an inability to sustain
positive FOCF or if adjusted EBITDA interest coverage fell
significantly, leading to a deterioration of the company's
liquidity position.

S&P views the potential for a positive rating action as remote in
the near term.  An upgrade would likely require a successful
operating and financial policy track record under new ownership,
as well as S&P's view of a stronger credit profile for the
broader group.


STX OFFSHORE: Court Mulls Sale of French Unit Sale This Week
------------------------------------------------------------

Agence France-Presse reports that a South Korean court handling
the bankruptcy case of STX Offshore and Shipbuilding Co., said on
Oct. 18 it could announce the bundled sale of the company with
its profitable French shipyard unit later this week.

STX France, which specializes in building cruise ships, is the
only profitable unit of STX Offshore, which filed for
receivership in May, AFP notes.

Originally it was assumed that the French unit would be sold off
separately as part of a general restructuring plan, but the
bankruptcy court signalled its preference for selling the two
companies as a package, AFP relays.

"The court is seeking to sell STX Offshore together with STX
France as one bundle," AFP quotes Choi Ung-Young, a judge who
acts as a spokesman for the Seoul Central District Insolvency
Court, as saying.

A court notice to that effect would be issued "this week",
Mr. Choi, as cited by AFP, said.

The court will then call in STX Offshore stakeholders and
creditor banks on Nov. 11 to approve the sale proposal and
overall restructuring plan, AFP discloses.

In 2008, STX bought a 66.6% stake in a huge naval shipyard in the
western French port of Saint-Nazaire, later named STX France, AFP
recounts.

The French state holds a 33.3% share and is extremely concerned
about the future of the shipyard, which is a big local employer
with a healthy order book for large cruise liners, AFP states.

STX Offshore & Shipbuilding Co. Ltd. is a Korea-based company
mainly engaged in the shipbuilding and offshore business. The
company operates its business through five segments: merchant
vessel, cruise, offshore and specialized vessel (OSV), vessel
apparatus and other segment.  The merchant vessel segment engages
in the manufacture of liquefied natural gas (LNG) and liquefied
petroleum gas (LPG) carriers, container ships, tankers, very
large ore carriers (VLOCs), bulk carriers as well as pure cars
and truck carriers. The cruise segment provides cruise ships.
The OSV segment engages in the manufacture of offshore patrol
vessels, corvettes and others.  The vessel apparatus segment
produces vessel engines, deck houses and others. The other
segment mainly engages in the plant construction business, rental
business, crane business and others.


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G R E E C E
===========


GREECE: Moody's Affirms Caa3 Government Bond Rating
---------------------------------------------------
Moody's Investors Service has affirmed Greece's government bond
rating at Caa3.  The outlook on the ratings is stable.  The
short-term rating was affirmed at Not Prime (NP).  Moody's
government bond rating applies to debt issued on private sector
terms only.

The key driver behind the affirmation is:

That, despite the recent successful completion of the first
review, Greece's continued timely access to official sector
funding over the remainder of the program remains uncertain,
given the unpredictable nature of Greek politics, the measures
still to be completed within the program, and political dynamics
in the euro area.  As a consequence, risks to private sector bond
holders remain elevated.

The stable outlook reflects Moody's view that the risks to
creditors are broadly balanced at the Caa3 rating level.  The
Caa3 rating continues to incorporate a high level of
implementation risk given Greece's weak institutions, social and
political fragmentation and a historically weak reform track
record.

The local and foreign-currency bond ceilings remain at Caa2.  The
local and foreign-currency bank deposit ceilings remain at Caa3.
The short-term foreign-currency bond and bank deposit ceilings
remain at Not Prime (NP).

                          RATINGS RATIONALE

Moody's has reassessed Greece's rating in light of the recent
completion of the first review of the third program.  The rating
agency has concluded that although the Eurogroup approved the
release of the remaining EUR2.8 billion of the first review of
the bailout package on Oct. 10 based on its favorable view of the
implementation of 15 outstanding measures, risks to the timely
access to official sector funding over the remainder of the
program remain elevated given the high level of political and
social discontent in Greece, and the country's weak institutions.

Although the government's recent track record of reform
implementation is positive, the uncertainty associated with a
conclusion of the remaining elements of the program, including
the second review which is expected to disburse around EUR6.1
billion, is still high.  This is especially so in the context of
the number of unpopular reforms required for adoption during the
second review concerning product and labour market reforms and
further steps towards privatization.  Domestic political dynamics
remain unpredictable, with the government having only a very slim
majority to ensure timely passage of a range of unpopular
reforms. And while Greece's relations with its euro area lenders
have been reasonably harmonious in recent months, the political
landscape across the euro area remains fluid, and the tone of
future negotiations unpredictable.

Accordingly, Moody's assessment is that credit risk to
bondholders has not diminished materially.  The risk of default
over the life of the program remains significant, given large
upcoming maturities in July 2017, with EUR6.6 billion in
amortizations, of which EUR2.3 billion is due to private sector
bond holders and EUR3.9 billion to the ECB.  Although the
intention is to complete the second review by year-end, Moody's
expects that given the past delays in completing program reviews,
slippages will continue to endanger the repayments due in mid-
2017 and beyond.

Lastly, although there is growing consensus among European
creditors and the IMF on the need for debt relief, the form that
any debt relief will take, and how far-reaching it will
ultimately be, remains unclear.  The Eurogroup has agreed to
phase in debt relief measures progressively and as necessary to
meet the agreed 15% of GDP gross financing needs benchmark,
subject to the program's pre-defined conditionality.  As
previously stated, Moody's shares the IMF's view that it is
unrealistic to expect Greece to meet primary surplus targets of
3.5% of GDP beyond 2018 and that substantial debt relief will be
needed to make Greece's debt burden sustainable.  Political
dynamics in Europe, including the electoral calendar of key
European creditors, make it unlikely that a quick decision on
debt relief will be made.

                  WHAT COULD MOVE THE RATING UP/DOWN

Moody's would consider downgrading Greece's government bond
rating should the conditions needed to provide ongoing assurance
of the implementation of the third bailout package fail to
materialize. This would most likely happen should the economic
recovery be materially slower than expected, should the coalition
government be unable to reach agreement measures to meet creditor
demands, or should wider political or social tensions emerge that
undermine popular or legislative support for the third program.

Moody's would consider upgrading Greece's government bond rating
in the event of reduced implementation risk to the program of
economic reforms under the third program, and sustained economic
growth and primary surpluses, which would support a decline in
debt levels.

  GDP per capita (PPP basis, US$): 26,449 (2015 Actual) (also
   known as Per Capita Income)
  Real GDP growth (% change): -0.2% (2015 Actual) (also known as
   GDP Growth)
  Inflation Rate (CPI, % change Dec/Dec): -0.2% (2015 Actual)
  Gen. Gov. Financial Balance/GDP: -7.2% (2015 Actual) (also
   known as Fiscal Balance)
  Current Account Balance/GDP: -0.1% (2015 Actual) (also known as
   External Balance)
  External debt/GDP: [not available]
  Level of economic development: Low level of economic resilience
  Default history: At least one default event (on bonds and/or
   loans) has been recorded since 1983.

On Oct. 11, 2016, a rating committee was called to discuss the
rating of the Greece, Government of.  The main points raised
during the discussion were: The issuer's economic fundamentals,
including its economic strength, have not materially changed.
The issuer's institutional strength/ framework, have not
materially changed.  The issuer's governance and/or management,
have not materially changed.  The issuer's fiscal or financial
strength, including its debt profile, has not materially changed.
The systemic risk in which the issuer operates has not materially
changed.  The issuer's susceptibility to event risks has not
materially changed.

The principal methodology used in these ratings was Sovereign
Bond Ratings published in December 2015.

The weighting of all rating factors is described in the
methodology used in this credit rating action, if applicable.

Affirmations:

Issuer: Greece, Government of
  LT Issuer Rating, Affirmed at Caa3
  Senior Unsecured Regular Bond/Debenture, Affirmed at Caa3
  Senior Unsecured Medium-Term Note Program, Affirmed at (P)Caa3
  Senior Unsecured Shelf, Affirmed at (P)Caa3
  Commercial Paper, Affirmed at NP
  Senior Unsecured Medium-Term Note Program, Affirmed at (P)NP

Unaffected:

Issuer: Greece, Government of
  Country Ceiling Bank Deposit Rating, Remains at Caa3
  Country Ceiling Bond Rating, Remains at Caa2
  Country Ceiling Bank Deposit Rating, Remains at NP
  Country Ceiling Bond Rating, Remains at NP

Outlook Actions:

Issuer: Greece, Government of
  Outlook, Remains Stable


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H U N G A R Y
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ZSOLNAY: Bachari's Request to Exclude Minority Shareholder Tossed
-----------------------------------------------------------------
MTI-Econews reports that a court in Zalaegerszeg on Oct. 17
rejected a request by the majority owner of Hungarian porcelain
maker Zsolnay to exclude the company's minority shareholder.

According to MTI-Econews, the court said the case brought by the
majority owner was unfounded.  Majority owner Bachar Najari had
initiated the exclusion of the local council of Pecs as well as
its holding company from Zsolnay, MTI-Econews relates.

The local council established a company early in the summer to
take over the porcelain maker's business while voicing concerns
over its imminent bankruptcy, MTI-Econews discloses.

Around the same time, Zsolnay's majority owner Bachar Najari
complained that his company was "under attack" by parties who
want to take over its business on the market for European Union-
supported building renovation, MTI-Econews relays.

A liquidation procedure was launched against Zsolnay but the
procedure was terminated by a court in August, MTI-Econews
recounts.



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I R E L A N D
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AVOCA CLO XVII: Moody's Assigns (P)B2 Rating to Class F Notes
-------------------------------------------------------------
Moody's Investors Service announced that it has assigned these
provisional ratings to notes to be issued by Avoca CLO XVII
Designated Activity Company:

  EUR269,000,000 Class A-1 Senior Secured Floating Rate Notes due
   2030, Assigned (P)Aaa (sf)
  EUR10,000,000 Class A-2 Senior Secured Fixed Rate Notes due
   2030, Assigned (P)Aaa (sf)
  EUR53,700,000 Class B Senior Secured Floating Rate Notes due
   2030, Assigned (P)Aa2 (sf)
  EUR23,400,000 Class C Deferrable Mezzanine Floating Rate Notes
   due 2030, Assigned (P)A2 (sf)
  EUR22,400,000 Class D Deferrable Mezzanine Floating Rate Notes
   due 2030, Assigned (P)Baa2 (sf)
  EUR26,500,000 Class E Deferrable Junior Floating Rate Notes due
   2030, Assigned (P)Ba2 (sf)
  EUR11,000,000 Class F Deferrable Junior Floating Rate Notes due
   2030, Assigned (P)B2 (sf)

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

                         RATINGS RATIONALE

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

Avoca CLO XVII is a managed cash flow CLO.  At least 90% of the
portfolio must consist of senior secured loans and senior secured
floating rate notes and up to 10% of the portfolio may consist of
unsecured loans, second-lien loans, mezzanine obligations and
high yield bonds.  The portfolio is expected to be approximately
60-70% ramped up as of the closing date and to be comprised
predominantly of corporate loans to obligors domiciled in Western
Europe.

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

In addition to the seven classes of notes rated by Moody's, the
Issuer will issue EUR 49.5 mil. of subordinated notes, which will
not be rated.

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

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

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

Loss and Cash Flow Analysis:

Moody's modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published in
October 2016.  The cash flow model evaluates all default
scenarios that are then weighted considering the probabilities of
the binomial distribution assumed for the portfolio default rate.
In each default scenario, the corresponding loss for each class
of notes is calculated given the incoming cash flows from the
assets and the outgoing payments to third parties and noteholders
Therefore, the expected loss or EL for each tranche is the sum
product of (i) the probability of occurrence of each default
scenario and (ii) the loss derived from the cash flow model in
each default scenario for each tranche.  As such, Moody's
encompasses the assessment of stressed scenarios.

Moody's used these base-case modeling assumptions:

  Par amount: EUR 450,000,000
  Diversity Score: 39
  Weighted Average Rating Factor (WARF): 2750
  Weighted Average Spread (WAS): 4.15%
  Weighted Average Coupon: 5.60%
  Weighted Average Recovery Rate (WARR): 43.6%
  Weighted Average Life (WAL): 8 years.

Moody's has analyzed the potential impact associated with
sovereign related risk of peripheral European countries.  As part
of the base case, Moody's has addressed the potential exposure to
obligors domiciled in countries with local currency country risk
ceiling of A1 or below.  Following the effective date, and given
the portfolio constraints and the current sovereign ratings in
Europe, such exposure may not exceed 10% of the total portfolio.
As a result and in conjunction with the current foreign
government bond ratings of the eligible countries, as a worst
case scenario, a maximum 10% of the pool would be domiciled in
countries with a local currency country ceiling of A3.  The
remainder of the pool will be domiciled in countries which
currently have a local currency country ceiling of Aaa or Aa1 to
Aa3.

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

Percentage Change in WARF: WARF + 15% (to 3163 from 2750)
Ratings Impact in Rating Notches:
Class A-1 Senior Secured Floating Rate Notes: 0
Class A-2 Senior Secured Fixed Rate Notes: 0
Class B Senior Secured Floating Rate Notes: -2
Class C Deferrable Mezzanine Floating Rate Notes: -2
Class D Deferrable Mezzanine Floating Rate Notes: -1
Class E Deferrable Junior Floating Rate Notes: 0
Class F Deferrable Junior Floating Rate Notes: 0
Percentage Change in WARF: WARF +30% (to 3575 from 2750)

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

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in October 2016.


AVOCA CLO XVII: Fitch Assigns 'B-(EXP)' Rating to Class F Notes
---------------------------------------------------------------
Fitch Ratings has assigned Avoca CLO XVII DAC notes expected
ratings, as follows:

   -- Class A1: 'AAA(EXP)sf'; Outlook Stable

   -- Class A2: 'AAA(EXP)sf'; Outlook Stable

   -- Class B: 'AA(EXP)sf'; Outlook Stable

   -- Class C: 'A(EXP)sf'; Outlook Stable

   -- Class D: 'BBB(EXP)sf'; Outlook Stable

   -- Class E: 'BB(EXP)sf'; Outlook Stable

   -- Class F: 'B-(EXP)sf'; Outlook Stable

   -- Subordinated notes: not rated

The assignment of the final ratings is contingent on the receipt
of final documents conforming to information already reviewed.

Avoca CLO XVII DAC is a cash flow collateralized loan obligation
(CLO). Net proceeds from the issue of the notes will be used to
purchase a EUR450m portfolio of European leveraged loans and
bonds. The portfolio is managed by KKR Credit Advisors (Ireland).
The transaction features a four-year reinvestment period.

KEY RATING DRIVERS

'B'/'B-' Portfolio Credit Quality

Fitch assesses the average credit quality of obligors in the
'B'/'B-' range. The agency has public ratings or credit opinions
on 95.3% of the obligors in the identified portfolio. The
weighted average rating factor (WARF) of the identified portfolio
is 32.5, below the covenanted maximum Fitch WARF for assigning
the expected ratings of 33.

High Recovery Expectations

At least 90% of the portfolio will comprise senior secured loans
and bonds. The weighted average recovery rate (WARR) of the
identified portfolio is 68.7%, above the covenanted minimum Fitch
WARR for assigning the expected ratings of 66%.

Payment Frequency Switch

The notes pay quarterly, while the portfolio assets can reset to
semi-annual. The transaction has an interest-smoothing account,
but no liquidity facility. A liquidity stress for the non-
deferrable classes A and B, stemming from a large proportion of
assets resetting to semi-annual in any one quarter, is addressed
by switching the payment frequency on the notes to semi-annual,
subject to certain conditions.

Limited Interest Rate Risk Exposure

Between 0% and 10% of the portfolio can be invested in fixed-rate
assets, while 97.9% of the liabilities pay a floating-rate
coupon. Fitch modelled both 0% and 10% fixed-rate buckets and
found that the rated notes can withstand the interest rate
mismatch associated with each scenario.

At closing the issuer will purchase an interest rate cap to hedge
the transaction again rising interest rates. The notional of the
cap is EUR16.88m (representing 4.2% of the target par amount) and
the strike rate is 4%. The cap will expire in 2028.

Documentation Amendments

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

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

RATING SENSITIVITIES

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

DUE DILIGENCE USAGE

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY

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

SOURCES OF INFORMATION

The information below was used in the analysis.

   -- Loan-by-loan data provided by the arranger as at 12
      September 2016

   -- Offering circular provided by the arranger as at 12 October
      2016

REPRESENTATIONS AND WARRANTIES

A description of the transaction's Representations, Warranties
and Enforcement Mechanisms (RW&Es) that are disclosed in the
offering document and which relate to the underlying asset pool
was not prepared for this transaction. Offering documents for
EMEA leveraged finance CLOs typically do not include RW&Es that
are available to investors and that relate to the asset pool
underlying the CLO. Therefore, Fitch credit reports for EMEA
leveraged finance CLO offerings will not typically include
descriptions of RW&Es. For further information, see Fitch's
Special Report titled "Representations, Warranties and
Enforcement Mechanisms in Global Structured Finance
Transactions," dated January 21, 2016.


CARLYLE GLOBAL 2016-2: Moody's Rates EUR11.5M Class E Notes (P)B2
-----------------------------------------------------------------
Moody's Investors Service assigned provisional ratings to six
classes of debts to be issued by Carlyle Global Market Strategies
Euro CLO 2016-2 Designated Activity Company:

  EUR232,000,000 Class A-1 Senior Secured Floating Rate Notes due
   2030, Assigned (P)Aaa (sf)
  EUR59,000,000 Class A-2 Senior Secured Floating Rate Notes due
   2030, Assigned (P)Aa2 (sf)
  EUR24,000,000 Class B Senior Secured Deferrable Floating Rate
   Notes due 2030, Assigned (P)A2 (sf)
  EUR19,000,000 Class C Senior Secured Deferrable Floating Rate
   Notes due 2030, Assigned (P)Baa2 (sf)
  EUR25,000,000 Class D Senior Secured Deferrable Floating Rate
   Notes due 2030, Assigned (P)Ba2 (sf)
  EUR11,500,000 Class E Senior Secured Deferrable Floating Rate
   Notes due 2030, Assigned (P)B2 (sf)

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

RATINGS RATIONALE

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

CGMSE 2016-2 is a managed cash flow CLO.  At least 96% of the
portfolio must consist of senior secured loans and senior secured
bonds and up to 4% of the portfolio may consist of unsecured
senior loans, second-lien loans, mezzanine obligations and high
yield bonds.  The portfolio is expected to be at least 80% ramped
up as of the closing date and to be comprised predominantly of
corporate loans to obligors domiciled in Western Europe.

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

In addition to the six classes of notes rated by Moody's, the
Issuer issued EUR 44,500,000 of subordinated notes which will not
be rated.

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

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

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

Loss and Cash Flow Analysis:

Moody's modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published
October 2016.  The cash flow model evaluates all default
scenarios that are then weighted considering the probabilities of
the binomial distribution assumed for the portfolio default rate.
In each default scenario, the corresponding loss for each class
of notes is calculated given the incoming cash flows from the
assets and the outgoing payments to third parties and
noteholders.  Therefore, the expected loss or EL for each tranche
is the sum product of (i) the probability of occurrence of each
default scenario and (ii) the loss derived from the cash flow
model in each default scenario for each tranche.  As such,
Moody's encompasses the assessment of stressed scenarios.

Moody's used these base-case modeling assumptions:

Par Amount: EUR 400,000,000
Diversity Score: 34
Weighted Average Rating Factor (WARF): 2800
Weighted Average Spread (WAS): 4.20%
Weighted Average Coupon (WAC): 5.5%
Weighted Average Recovery Rate (WARR): 43%
Weighted Average Life (WAL): 8 years

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

Percentage Change in WARF: WARF + 15% (to 3220 from 2800)
Ratings Impact in Rating Notches:
Class A-1 Senior Secured Floating Rate Notes due 2030: 0
Class A-2 Senior Secured Floating Rate Notes due 2030: -2
Class B Senior Secured Deferrable Floating Rate Notes due
2030: -2
Class C Senior Secured Deferrable Floating Rate Notes due
2030: -2
Class D Senior Secured Deferrable Floating Rate Notes due
2030: -1
Class E Senior Secured Deferrable Floating Rate Notes due
2030: -0
Percentage Change in WARF: WARF +30% (to 3640 from 2800)

Ratings Impact in Rating Notches:
Class A-1 Senior Secured Floating Rate Notes due 2030: -0
Class A-2 Senior Secured Floating Rate Notes due 2030: -3
Class B Senior Secured Deferrable Floating Rate Notes due
2030: -4
Class C Senior Secured Deferrable Floating Rate Notes due
2030: -2
Class D Senior Secured Deferrable Floating Rate Notes due
2030: -1
Class E Senior Secured Deferrable Floating Rate Notes due
2030: -2

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in October 2016.


SCFI RAHOITUSPALVELUT: Fitch Affirms 'BB+sf' Rating on Cl. E Debt
-----------------------------------------------------------------
Fitch Ratings has upgraded SCFI Rahoituspalvelut Ltd's (SCFI)
class B and class D notes and affirmed the others, as follows:

   -- EUR78.0m class A notes: affirmed at 'AAAsf'; Stable Outlook

   -- EUR43.5m class B notes: upgraded to 'AAAsf' from 'AA+sf';
      Stable Outlook

   -- EUR6.7m class C notes: affirmed at 'A+sf'; Stable Outlook

   -- EUR7.2m class D notes: upgraded to 'A+sf' from 'Asf';
      Stable Outlook

   -- EUR8.2m class E notes: affirmed at 'BB+sf'; Stable Outlook

SCFI is a securitization of auto loan receivables originated to
Finnish individuals and companies by Santander Consumer Finance
Oy (SCF Oy, the seller), a 100% subsidiary of Norway-based
Santander Consumer Bank AS (SCB, A-/Stable/F2).

KEY RATING DRIVERS

The rating actions reflect that the underlying asset pool's
performance has been in line with or better than Fitch's
expectations. Credit enhancement has increased for all classes of
notes. 70% of the transaction pool has amortized since closing in
November 2014. The composition of the remaining pool has similar
characteristics to the initial pool. The proportion of balloon
loans has increased, but this is expected due to the
amortization.

The short weighted average life (WAL) of the remaining pool
required a customization of the standard 18 months WAL default
vector, which resulted in dis-applying the even and back-loaded
distributions due to lack of relevance.

Defaults

The lifetime default base case for the transaction is 1.75%.
Cumulative defaults to date are 0.7%, which is slightly below
Fitch's expectation. Long-term delinquencies have remained
relatively stable, with 90-days plus averaging 0.2% since October
2015.

High Recoveries

The recoveries achieved by SCF Oy are among the highest for rated
European auto ABS, which is reflected in the 70% recovery base
case set for the transaction. Cumulative recoveries to date are
at 78%.

Liquidity Coverage

The transaction features a liquidity reserve, which provides
liquidity coverage for the class A and B notes. Class C and below
do not benefit from the reserve, which means timely payment of
interest on the notes may not be achieved in the case of a
servicing disruption, constraining their highest achievable
rating to 'A+sf'. The transaction also includes a credit reserve
which could cover liquidity shortfalls for these notes. However,
our analysis has shown that the credit reserve would be depleted
in rating scenarios above 'A+sf'.

RATING SENSITIVITIES

Expected impact upon the note rating of increased defaults (class
A/B/C/D/E):

   -- Current ratings: 'AAAsf'/'AAAsf'/'A+sf'/'A+sf'/'BB+sf'

   -- Increase base case defaults by 50%:
      'AAAsf'/'AAAsf'/'A+sf'/'A+sf'/'BB+sf'

Expected impact upon the note rating of reduced recoveries (class
A/B/C/D/E):

   -- Current Ratings: 'AAAsf'/'AAAsf'/'A+sf'/'A+sf'/'BB+sf'

   -- Reduce base case recovery by 50%:
      'AAAsf'/'AAAsf'/'A+sf'/'A+sf'/'BB+sf'

Expected impact upon the note rating of increased defaults and
decreased recoveries (class A/B/C/D/E):

   -- Current Ratings: 'AAAsf'/'AAAsf'/'A+sf'/'A+sf'/'BB+sf'

   -- Increase default base case by 50%; reduce recovery base
      case by 50%: 'AAAsf'/'AA+sf'/'A+sf'/'A-sf'/'BB+sf'

USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO RULE 17G-10

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY

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

Prior to the transaction closing, Fitch reviewed the results of a
third party assessment conducted on the asset portfolio
information, which indicated no adverse findings material to the
rating analysis.

Prior to the transaction closing, Fitch conducted a review of a
small targeted sample of the origination files and found the
information contained in the reviewed files to be adequately
consistent with the originator's policies and practices and the
other information provided to the agency about the asset
portfolio.

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

SOURCES OF INFORMATION

The information below was used in the analysis.

   -- Monthly investor reports provided by SCF Oy up to 30
      September 2016

   -- Loan-by-loan data from the European Data Warehouse as at 31
      July 2016.

MODELS

   -- EMEA Cash Flow Model


* IRELAND: 6 Galway-based Hospitality Firms Declared Insolvent
--------------------------------------------------------------
Connacht Tribune reports that six Galway-based hospitality
businesses have been declared insolvent in the past three months.

Connacht Tribune relates that new figures from VisionNet showed
that in total, 14 companies across Galway were made insolvent in
the third quarter of this year.

According to the report, the latest figures show despite a jump
of 75% in insolvencies compared to the same period last year,
start-ups across the city and county are performing well.

Connacht Tribune says 227 new companies were established in the
last three months. That's an increase of over 7% on the figure
for 2015.

The majority of new companies are in the professional services,
social services, construction and retail sectors, adds Connacht
Tribune.


===================
K A Z A K H S T A N
===================


EKIBASTUZ GRES-1: Fitch Affirms 'BB+' LT Foreign Currency IDR
-------------------------------------------------------------
Fitch Ratings has affirmed Kazakhstan-based electricity power
plant Ekibastuz GRES-1 LLP's (GRES-1) Long-Term Foreign Currency
Issuer Default Rating (IDR) at 'BB+'. The Outlook is Stable.

The affirmation reflects that the company continues to benefit
from a relatively strong position in the domestic power market
despite the weakening of operating performance in 2016 and
continued uncertainty in the regulatory regime in Kazakhstan. It
also reflects the company's still solid credit metrics due to
expected capex and dividends flexibility.

The company's ratings also benefit from a one-notch uplift for
support from its 100% shareholder -- JSC Samruk-Energy
(Samruk-Energy, BB+/Stable), which is in turn 100% state-owned
via Sovereign Wealth Fund Samruk-Kazyna JSC (Samruk-Kazyna,
BBB/Stable).

KEY RATING DRIVERS

Weaker Operating Performance

Fitch expects a 23% decline of Ekibastuz GRES-1 revenue in 2016,
hindered by the respective fall in the electricity production
volumes, and only a slight improvement of 0.5% in 2017-2018. The
fall reflects a very weak operating performance in 8M2016 with
electricity production decreasing 25% yoy opposite to positive
dynamics across Kazakhstan (+1.6%).

The abrupt fall in production was due to the regulator setting
GRES-1 the highest electricity generation tariff in Kazakhstan,
despite the company's relatively low cost of production. The fall
also reflected the economic slowdown in the country, and an
increase in electricity production at hydro power plants (HPPs),
which caused clients outflow from GRES-1. There is a lack of
clarity on the timing and scale of downward tariff revision for
the most expensive electricity generators, including GRES-1,
although according to the company, the regulator is considering
this. The lack of electricity exports to Russia was another
negative factor due to excess capacities and recession in Russia
and unattractive low export prices for Ekibastuz GRES-1.

Significant Capex Programme Cut

In response to the sharp electricity production fall in
2015-8M16, GRES-1 expects to cut its 2017-2018 investment program
to KZT1.8bn in 2017 and KZT2bn in 2018 vs. average KZT49bn per
year in 2012-2015. According to the company, all capital repair
projects will be almost frozen in 2017, and GRES-1 will implement
only vital investments required by technical supervisory bodies.
This reduction will benefit credit metrics in the short term, but
Fitch does not expect it is sustainable, as GRES-1's ability to
keep reliable electricity production at a stable level with
negligible capex is questionable, taking into account our earlier
assumption of annual maintenance capex of around KZT30bn.

Fitch therefore incorporates in its forecasts a smaller cut in
capex, resulting in investments of KZT10bn in 2017 and around
KZT30bn annually from 2018.

High Cost of Debt

In May 2016 GRES-1 successfully refinanced its short-term loans
of KZT35bn at Halyk Bank of Kazakhstan (BB/Stable) and extended
the maturities to 2021. The debt will amortize annually from 2017
with a total KZT7bn payment each year. However, the interest
rates increased to 15%-16% from 14% previously. The company
raised short-term debt of KZT5.5bn at under 16% in May-September
2016. According to GRES-1, the interest rate on all company's
loans was revised down to 14% in August-September, which still
seems quite high given the modest expected economic growth in
Kazakhstan in 2017-2018. Fitch said, "We view the extension of
loan maturities and smoother amortization profile as credit
positive, but the high cost of debt will pressure the company's
coverage metrics."

Tariff Uncertainty Weighs on Metrics

The predictability of GRES-1's cash flows is low due to tariff
uncertainty, which may affect electricity generation volumes, and
the lack of the controlling shareholder's long-term view on the
dividend stream and capex. Fitch said, "We expect GRES-1 to
remain free cash flow (FCF) negative in 2016-2019. In our view,
negative FCF will be extensively debt-funded and will lead to a
deterioration in the company's financial metrics. We forecast
funds from operations (FFO) gross adjusted leverage to double
from 0.8x at end-2015 to 1.6x on average over 2016-2019 and FFO
interest coverage to decline from 14x at end-2015 to average 5x
in 2016-2019. Nevertheless, there is still headroom within our
guidance for the company's rating."

Uplift for Parental Support

GRES-1's 'BB+' rating benefits from a one-notch uplift for
support from its majority shareholder -- Samruk-Energy, which is
in turn 100% state-owned. Fitch said, "We consider the strategic,
operational and legal linkage between GRES-1 and Samruk-Energy as
relatively strong. In 2016 the support was demonstrated by
reducing GRES-1's dividends to KZT2.2bn from the historical
KZT8bn paid in 2014-2015." Samruk-Energy may ease dividend burden
for GRES-1 further in 2017 given the weaker cash flows. In turn
Samruk-Energy received support from Samruk-Kazyna in the form of
shareholder loan interest rate reduction to 1% from 9% at the end
of 2015.

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for the issuer
include:

   -- Zero tariff growth in 2016-2018

   -- 23% decline in electricity production in 2016, and 0.5%
      growth in 2017-2018, which is below the GDP growth rate

   -- Inflation driven cost increase (including coal)

   -- Dividends of KZT5bln in 2017 and KZT8bn in 2017-2018

   -- Capex of KZT10bn in 2017, KZT30m from 2018, which is above
      management's guidance.

RATING SENSITIVITIES

Negative: Future developments that could lead to a downgrade
include:

   -- FFO-adjusted gross leverage persistently higher than 2x and
      FFO interest coverage below 4x, for instance, due to
      tariffs and/or operating dynamics materially lower than
      Fitch's forecasts and a substantially above-inflation
      increase in coal price.

   -- Inability to refinance existing loan amortization payments
      and raise new debt to cover cash shortfalls at affordable
      levels.

   -- Committing to capex without sufficient available funding,
      worsening overall liquidity position.

Positive: Future developments that could lead to an upgrade
include:

   -- Long-term predictability of the regulatory framework.

   -- More diversified and efficient asset base.

LIQUIDITY AND DEBT STRUCTURE

Weak but Manageable Liquidity

Fitch views GRES-1's liquidity as weak but manageable. At end-
1H16 GRES-1 had cash and cash equivalents of KZT602m versus
short-term debt of KZT3.2bn. The company's debt was represented
by two long-term loans from Halyk Bank, KZT23bn at 15% and
KZT12bn at 16%, both amortizing for five years by equal payments
in 2017-2021. In May 2016 and September 2016, GRES-1 withdrew
KZT3bn and KZT2.5bn from a KZT8bn credit line at Halyk Bank.
These loans mature in one year.

"All loans are tenge-denominated and have fixed interest rates.
As of 1 October 2016, based on our estimates, the cash and
internally generated funds should be enough to finance capex
needs and debt repayments one year ahead, but beyond that we
expect negative FCF. The parent has also confirmed to Fitch its
ability and willingness to provide liquidity to GRES-1 on a
timely basis for the subsidiary's debt maturities." Fitch said.

FULL LIST OF RATING ACTIONS

   -- Long-Term Foreign Currency Issuer Default Rating (IDR)
      affirmed at 'BB+', Outlook Stable

   -- Long-Term Local Currency IDR affirmed at 'BB+', Outlook
      Stable

   -- National Long-Term Rating affirmed at 'AA-(kaz)', Outlook
      Stable.

Fitch has withdrawn the expected Local currency senior unsecured
rating of 'BB+(EXP)' and the expected National senior unsecured
rating of 'AA-(kaz)(EXP)' as the company decided to voluntarily
delist the bond program and not proceed with bond issuance.


===================
L U X E M B O U R G
===================


EIRCOM FINCO: Moody's Assigns B2 Rating to Term Loan B5
-------------------------------------------------------
Moody's Investors Service has assigned a B2 rating, with a loss
given default assessment of 3, to the new tranche (term loan B5)
of the existing senior secured credit facility raised by eircom
Finco S.a.r.l, a wholly-owned subsidiary of telecommunications
company eircom Holdings (Ireland) Limited (eir).

All other ratings remain unchanged, including the B2 corporate
family rating (CFR) and B2-PD probability of default rating of
eir and the existing instrument ratings.  The outlook on all the
ratings remains positive.

                        RATINGS RATIONALE

eir is refinancing its existing EUR1,662 million term loan B4
with a new term facility B5.  This refinancing exercise will
reduce the coupon to 4% from 4.5%, which will lead to a decline
in interest costs by over EUR8 million, modestly improving
interest coverage ratios and free cash flow generation, a credit
positive. Nevertheless, this refinancing exercise is leverage
neutral and does not have an impact on eir's ratings.

This transaction follows previous refinancing exercises which
have enabled the company to improve its financial flexibility by
simplifying the company's capital structure, including the
extension of debt maturities to 2022, improving its covenant
headroom and diversifying its funding sources through the
issuance of EUR700 million senior secured notes last June.

eir's B2 CFR reflects (1) its integrated business model; (2) its
strong position in the fixed-line market as Ireland's incumbent
operator, and its position as the third-largest operator in the
mobile segment; (3) the potential for its competitive position to
strengthen over time as a result of its accelerated investment
plan in fibre and 4G networks; and (4) our expectation of
positive free cash flow generation once eir completes the current
investment cycle.  However, the rating also reflects (1) eir's
high leverage, although Moody's expect deleveraging from current
levels; (2) the challenging competitive environment in the Irish
market; and (3) its volatile IAS 19 accounting pension deficit.

                   RATIONALE FOR POSITIVE OUTLOOK

The positive outlook reflects our view that eir's operating
performance will continue to improve over the next 12-18 months,
mainly driven by growth in eir's fibre broadband customers, price
increases, improving mobile performance and sustained cost
cutting efforts.  These will allow eir to generate growing free
cash flows, and to reduce debt further.

                WHAT COULD CHANGE THE RATING UP/DOWN

Upward pressure on the rating would be supported by continued
improved operating performance, with growth in revenues and
EBITDA leading to lower leverage such as adjusted debt/EBITDA
sustainably falling below 5.0x.  Upward rating pressure would
also require the group to generate growing positive free cash
flows and to maintain a sound liquidity profile, with comfortable
headroom under financial covenants.

Downward pressure on the rating could materialize if the group
fails to execute its business plan or if pricing dynamics
deteriorate, leading to weaker-than-expected credit metrics,
including adjusted debt/EBITDA sustainably above 5.5x, and
persistently negative free cash flow generation.  Given the
volatility of eir's IAS 19 pension deficit, the B2 rating with a
positive outlook incorporates the potential for moderate
deviations from these ranges on a temporary basis.

There would also be negative ratings pressure if eir's liquidity
came under stress, as a result of a weaker-than-expected
operating performance or larger-than-planned cash outflows for
capex or voluntary leavers.

LIST OF AFFECTED RATINGS

Assignments:

Issuer: eircom Finco S.a.r.l.
  Backed Senior Secured Bank Credit Facility, Assigned B2 (LGD3)

                       PRINCIPAL METHODOLOGY

The principal methodology used in this rating was Global
Telecommunications Industry published in December 2010.

eircom Holdings (Ireland) Limited is the holding company of the
eir group, the principal provider of fixed-line
telecommunications services in Ireland, with a revenue share of
the fixed-line market of approximately 49% (according to ComReg).
The group is also the third-largest mobile operator in Ireland,
with a subscriber market share of approximately 21% (excluding
mobile broadband and Machine to Machine, according to ComReg).
eir reported revenue of EUR1.3 billion and adjusted EBITDA of
EUR505 million for the financial year ended June 2016.


GSC EUROPEAN II: Moody's Cuts Ratings on 3 Note Classes to Caa3
---------------------------------------------------------------
Moody's Investors Service announced that it has taken rating
actions on these classes of notes issued by GSC European CDO II
S.A.:

  EUR16 mil. (current balance EUR13.0 mil.) Class D1 Floating
   Rate Notes, Affirmed Aa1 (sf); previously on April 20, 2016,
   Upgraded to Aa1 (sf)
  EUR2 mil. (current balance EUR1.6 mil.) Class D2 Floating Rate
   Notes, Affirmed Aa1 (sf); previously on April 20, 2016,
   Upgraded to Aa1 (sf)
  EUR4 mil. (current balance EUR5.3 mil.) Class E1 Floating Rate
   Notes, Downgraded to Caa3 (sf); previously on April 20, 2016,
   Affirmed Caa1 (sf)
  EUR7.5 mil. (current balance EUR11.5 mil.) Class E2 Fixed Rate
   Notes, Downgraded to Caa3 (sf); previously on April 20, 2016,
   Affirmed Caa1 (sf)
  EUR10 mil. (current rated balance EUR4.1 mil.) Combination Y,
   Downgraded to Caa3 (sf); previously on April 20, 2016,
   Upgraded to Caa1 (sf)

GSC European CDO II S.A., issued in June 2005, is a
collateralized loan obligation (CLO) backed by a portfolio of
mostly high-yield senior secured European loans managed by GSCP
(NJ), LP.  The transaction's reinvestment period ended in July
2010.

                         RATINGS RATIONALE

According to Moody's, the rating actions taken on the Classes E1
and E2 notes are the result of deterioration in the credit
quality of the pool since the last rating action in April 2016,
as reflected in a worse trustee reported WARF of 4402 in
September 2016 compared to 4029 in March 2016.  The proportion of
Caa rated assets in the pool reported by the trustee has
increased from 39.2% to 49.8% during this period, resulting in a
higher OC haircut of 32.3% of performing par in the September
2016 trustee report compared to 23.5% in March 2016.

This higher haircut has led to a deterioration in the
overcollateralization ratios for Classes E1 and E2.  Inclusive of
unpaid interest amounts on Classes E1 and E2, which increased
from a total of EUR5.07 million to EUR5.27 million during this
period, EOC recalculated as per trustee data declined from 84.50%
in March 2016 to 80.85% in September 2016.  EIC continues to
breach the 102% covenant, and fell from 15.49% to 9.85% during
the past six months.  Moody's expects that OC cover for Classes
E1 and E2 will continue to decline, given the ongoing shortage of
interest proceeds to fully service interest on these classes of
notes.

The rating of the Combination Notes addresses the repayment of
the Rated Balance on or before the legal final maturity.  For
Class Y, the 'Rated Balance' is equal at any time to the
principal amount of the Combination Note on the Issue Date minus
the aggregate of all payments made from the Issue Date to such
date, either through interest or principal payments.  The Rated
Balance may not necessarily correspond to the outstanding
notional amount reported by the trustee.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in October 2016.

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

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

Additional uncertainty about performance is due to:

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

  2) Recoveries on defaulted assets: Market value fluctuations in
     trustee-reported defaulted assets and those Moody's assumes
     have defaulted can result in volatility in the deal's over-
     collateralization levels.  Further, the timing of recoveries
     and the manager's decision whether to work out or sell
     defaulted assets can also result in additional uncertainty.
     Moody's analyzed defaulted recoveries assuming the lower of
     the market price or the recovery rate to account for
     potential volatility in market prices. Recoveries higher
     than Moody's expectations would have a positive impact on
     the notes' ratings.

  3) Around 66.2% of the collateral pool consists of debt
     obligations whose credit quality Moody's has assessed by
     using credit estimates.  As part of its base case, Moody's
     has stressed large concentrations of single obligors bearing
     a credit estimate as described in "Updated Approach to the
     Usage of Credit Estimates in Rated Transactions," published
     in October 2009 and available at:

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

  4) Long-dated assets: The presence of assets that mature beyond
     the CLO's legal maturity date exposes the deal to
     liquidation risk on those assets.  Moody's assumes that, at
     transaction maturity, the liquidation value of such an asset
     will depend on the nature of the asset as well as the extent
     to which the asset's maturity lags that of the liabilities.
     Liquidation values higher than Moody's expectations would
     have a positive impact on the notes' ratings.

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


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


JACOBS DOUWE: S&P Assigns 'BB' Rating to EUR1BB Sr. Sec. Loan
-------------------------------------------------------------
S&P Global Ratings assigned its 'BB' issue and '3' recovery
rating to the proposed EUR1 billion senior secured term loan to
be issued by coffee and tea company JACOBS DOUWE EGBERTS
International B.V. (JDE).  The '3' recovery rating reflects S&P's
expectations of meaningful recovery (in the lower half of the
50%-70% range) in the event of default.  S&P expects the new
proposed term loan A-3 to rank pari passu with the existing term
loan A, with terms and conditions in line with the same.  S&P
understands that Netherlands-based JDE will use these funds to
reduce the principal amounts in the existing credit agreement,
which bear a higher margin.  The issuance will therefore help to
reduce the average cost of debt.

At the same time, S&P is affirming its 'BB' issue rating and
revising its recovery rating on JDE's existing senior secured
credit facilities to '3' from '4', including its EUR500 million
revolving credit line.  This improvement in recovery reflects the
substantial payments that the group has made against the
outstanding senior secured debt since the start of 2016.  S&P
also understands that JDE is engaging with its lenders to reprice
the existing tranches under its credit facility.  S&P expects the
issue and recovery ratings to be unchanged following these
negotiations.

S&P values JDE as a going concern given its strong brands and
solid position in the global coffee market.  S&P's hypothetical
default scenario envisages a decline in operating performance
owing to lower-than-expected demand combined with a sharp and
long-lasting increase in raw-material prices, leading to the
group's inability to refinance its maturing debt.  S&P's recovery
expectations are in the lower half of the 50%-70% range.  The
rating, however, is constrained by the all-senior-secured-debt
structure and S&P's view of the relatively weak security package,
which mainly compromises share pledges.

                       RECOVERY ANALYSIS

Simulated Default Assumptions
   -- Year of default: 2021
   -- EBITDA at emergence: EUR552 million
   -- Implied enterprise valuation (EV) multiple: 6.0x
   -- Jurisdiction: The Netherlands

Simplified Waterfall
   -- Net EV (after 5% administration costs): EUR3,148 million
   -- First-lien secured debt claims: EUR6 billion*
      -- Recovery expectation: 50%-70% (lower half of range)
*All debt amounts include six months of prepetition interest.


TIKEHAU CLO II: Moody's Assigns (P)B2 Rating to Class F Notes
-------------------------------------------------------------
Moody's Investors Service announced that it has assigned these
provisional ratings to notes to be issued by Tikehau CLO II B.V.:

  EUR244,000,000 Class A Senior Secured Floating Rate Notes due
   2029, Assigned (P)Aaa (sf)
  EUR46,000,000 Class B Senior Secured Floating Rate Notes due
   2029, Assigned (P)Aa2 (sf)
  EUR23,000,000 Class C Senior Secured Deferrable Floating Rate
   Notes due 2029, Assigned (P)A2 (sf)
  EUR18,000,000 Class D Senior Secured Deferrable Floating Rate
   Notes due 2029, Assigned (P)Baa2 (sf)
  EUR28,000,000 Class E Senior Secured Deferrable Floating Rate
   Notes due 2029, Assigned (P)Ba2(sf)
  EUR10,500,000 Class F Senior Secured Deferrable Floating Rate
   Notes due 2029, Assigned (P)B2(sf)

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

                        RATINGS RATIONALE

Moody's provisional rating of the rated notes addresses the
expected loss posed to noteholders by legal final maturity of the
notes in 2029.  The provisional ratings reflect the risks due to
defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure.  Furthermore, Moody's
is of the opinion that the collateral manager, Tikehau Capital
Europe Limited, has sufficient experience and operational
capacity and is capable of managing this CLO.

Tikehau CLO II B.V. is a managed cash flow CLO.  At least 90% of
the portfolio must consist of senior secured obligations and up
to 10% of the portfolio may consist of senior unsecured
obligations, second-lien loans, mezzanine obligations and high
yield bonds.  The portfolio is expected to be 60% ramped up as of
the closing date and to be comprised predominantly of corporate
loans to obligors domiciled in Western Europe.  The remainder of
the portfolio will be acquired during the six month ramp-up
period in compliance with the portfolio guidelines.

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

In addition to the six classes of notes rated by Moody's, the
Issuer will issue EUR 44,700,000 of subordinated notes which will
not be rated.

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

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

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

Loss and Cash Flow Analysis:

Moody's modeled the transaction using CDOEdge, a cash flow model
based on the Binomial Expansion Technique, as described in
Section 2.3 of the "Moody's Global Approach to Rating
Collateralized Loan Obligations" rating methodology published in
October 2016.  The cash flow model evaluates all default
scenarios that are then weighted considering the probabilities of
the binomial distribution assumed for the portfolio default rate.
In each default scenario, the corresponding loss for each class
of notes is calculated given the incoming cash flows from the
assets and the outgoing payments to third parties and
noteholders.  Therefore, the expected loss or EL for each tranche
is the sum product of (i) the probability of occurrence of each
default scenario and (ii) the loss derived from the cash flow
model in each default scenario for each tranche.

Moody's used these base-case modeling assumptions:

Par Amount: EUR 400,000,000
Diversity Score: 35
Weighted Average Rating Factor (WARF): 2750
Weighted Average Spread (WAS): 4.25%
Weighted Average Coupon (WAC): 5.25%
Weighted Average Recovery Rate (WARR): 42.00%
Weighted Average Life (WAL): 8 years.

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

Percentage Change in WARF: WARF + 15% (to 3163 from 2750)
Ratings Impact in Rating Notches:
Class A Senior Secured Floating Rate Notes: 0
Class B Senior Secured Floating Rate Notes: -2
Class C Senior Secured Deferrable Floating Rate Notes:-2
Class D Senior Secured Deferrable Floating Rate Notes: -1
Class E Senior Secured Deferrable Floating Rate Notes: -1
Class F Senior Secured Deferrable Floating Rate Notes:0

Percentage Change in WARF: WARF +30% (to 3575 from 2750)
Ratings Impact in Rating Notches:
Class A Senior Secured Floating Rate Notes: -1
Class B Senior Secured Floating Rate Notes: -3
Class C Senior Secured Deferrable Floating Rate Notes: -3
Class D Senior Secured Deferrable Floating Rate Notes: -2
Class E Senior Secured Deferrable Floating Rate Notes: -1
Class F Senior Secured Deferrable Floating Rate Notes: -2

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in October 2016.


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


SWAN OFFICE: Smartown Buys Office Project for EUR30.3 Million
-------------------------------------------------------------
Business Review reports that the insolvent office project Swan
Office & Technology Park was sold by Casa de Insolventa
Transilvania, the insolvency administrator for this real estate
project.

Business Review relates that the sale price stood at EUR30.3
million, which is around 50 percent above the price approved by
creditors.

Six investors got in the final sale stage, each being ready to
pay at least EUR20.8 million. Smartown Investments reached a deal
with CITR following direct negotiations as it offered the biggest
price, according to Business Review.

Business Review relates that Bogdan Gorde, project manager and
senior partner at CITR, said that several hundred investors have
been contacted in relation with the office project and over 150
of them, of 26 nationalities, were directly interested in Swan
Office Park.

"The sale of the project came as a result of the sustained effort
of CITR's specialists that were able to grow the leasable area by
over 130 percent, from 33%, the amount that existed at the start
of the insolvency to 78%, at the moment of sale," Business Review
quotes Vasile Godina-Herlea, managing partner of CITR, as saying.

Swan Offices Park, which is located in Voluntari city, Ilfov
county, has a leasable area of 29,124 sqm and a land plot of
5,000 sqm for future developments. In the complex there are three
office buildings, the report says.

The buyer was assisted by law firm Wolf Theiss, Business Review
discloses.

The office project has been in insolvent since March 2013, the
report notes.


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


FIRST COLLECTION: S&P Affirms 'B-' Counterparty Credit Rating
-------------------------------------------------------------
S&P Global Ratings revised its outlook on Russia-based First
Collection Bureau (FCB) to negative from stable.  S&P affirmed
its 'B-' long-term counterparty credit rating.

At the same time, S&P lowered the Russia national scale rating on
FCB to 'ruBBB-' from 'ruBBB'.

The outlook revision reflects S&P's view that shaky performance
indicators and a significant one-off deal on the balance sheet
could hurt FCB's creditworthiness.  S&P takes into account FCB's
very high leverage but factor in its expectation that the company
will reduce its debt to EBITDA to at least 5x, while its cash
flows return to positive in 2016.

S&P's assessment of FCB's business risk profile continues to
reflect S&P's view of high country and industry risks to which
the group is exposed.  S&P notes that in a continued economic
downturn in Russia, the debt collection market size contracts and
the sector's profitability weakens overall, while regulatory
pressure is high.

S&P now considers FCB to be highly leveraged.  Its debt-to-EBITDA
ratio deteriorated to above 11x, pointing to a material one-off
deal executed for the benefit of shareholders.  This deal was
recorded as a loan to the legal entity.  However, S&P understands
that the deal should close by the end of 2016, which would reduce
debt to EBITDA to at least 5x.  S&P notes that FCB's operating
cash flows and funds from operations were both negative in 2015,
reflecting the significant costs tied to the National Recovery
Service acquisition.  However, S&P believes that FCB cut these
expenses significantly, coaxing cash flow metrics to positive
from 2016.

Despite the company's refinancing success in 2015, S&P continues
to see some strain on the company's liquidity profile, as
consolidated cash collections are pressured amid the current weak
operating environment in Russia.  At the same time, S&P
anticipates that FCB will adequately manage this situation by
performing regular stress testing aimed at limiting the risk of
delays in interest payments.  S&P understands that FCB plans to
issue Russian ruble (RUB) 2 billion (about USD32 million) of
bonds and simultaneously redeem RUB1.5 billion of outstanding
bonds in circulation seeking lower interest rates.  Furthermore,
S&P understands that FCB agreed with a number of investors that
the majority of this placement will be bought out.  Therefore,
S&P believes that FCB is not currently vulnerable to nonpayment
and does not depend on favorable business, financial, and
economic conditions to meet its financial commitment on the
obligation and consequently does not meet S&P's definition of
'CCC+' rating.

The combination of the above-mentioned factors leads S&P to
derive a group credit profile of 'b-' for the wider FCB group.
S&P considers FCB to be a core subsidiary of the FCB group, which
owns 100% of FCB.  FCB is the group's key asset in the distressed
debt purchase segment.  S&P therefore equalizes the ratings on
FCB with S&P's assessment of the group's credit profile.

The negative outlook reflects the possibility of a negative
rating action if FCB's cash flows and leverage do not materially
improve by the end of 2016.  Still, S&P anticipates that FCB's
debt to EBITDA will trend down but remain high, in line with
S&P's assessment of highly leveraged or aggressive cash flow and
leverage metrics, while free operating cash flow and operating
cash flow return to positive in 2016.  S&P also notes its view
that the company will adequately manage its liquidity to ensure
timely debt servicing in the next 12 months.

S&P would lower its ratings on FCB if S&P sees that it becomes
vulnerable to nonpayment and depends on favorable business,
financial, and economic conditions to meet its financial
obligations, because of lower cash flow or higher leverage.
Furthermore, S&P could lower the ratings if the significant one-
off deal recorded as a loan to the legal entity is not redeemed
by the end of 2016.

S&P currently do not expect to upgrade FCB.


KARELIA: Fitch Affirms 'B+' Long-term Issuer Default Ratings
------------------------------------------------------------
Fitch Ratings has affirmed the Russian Republic of Karelia's
Long-Term Foreign and Local Currency Issuer Default Ratings
(IDRs) at 'B+' and National Long-Term Rating at 'A(rus)'.

The agency has also affirmed the republic's Short-Term Foreign
Currency IDR at 'B'. The Outlook on the Long-Term IDRs and
National Long-Term Rating is Stable. Karelia's senior debt
ratings have also been affirmed at 'B+' and 'A(rus)'.

The affirmation reflects Karelia's weak fiscal performance, which
we expect to continue over the medium term, along with the
republic's stabilized credit metrics that are commensurate with
the ratings.

KEY RATING DRIVERS

The 'B+' rating reflects Karelia's weak fiscal performance,
material direct risk, and stabilized liquidity amid a prolonged
difficult economic environment in Russia. The ratings also factor
in our expectations of fragile operating performance in 2016-2018
and a consistently negative current balance. Fitch said, "We
expect the republic's direct risk to edge higher to 80%-85% of
current revenue over the medium term (2015: 79.9%)."

"We expect continued weakness in the republic's 2016 fiscal
performance, with an operating margin close to 1%. Thereafter we
expect slow improvement in fiscal performance in 2017-2018,
driven by a recovery of tax revenues, additional support from the
federal government and operating expenditure restraint.
Otherwise, Karelia would continue posting negative margins
(operating and current), reflecting prolonged structural
imbalances of its budget, which could be negative for ratings."
Fitch said.

Fitch expects Karelia to gradually narrow its deficit before debt
variation to about 10% of total revenue in 2016, and further to
6%-8% in 2017-2018. The republic's interim deficit before debt
was 11% of total revenue at end-8M16. This compares with 11.5% in
2015 and 12% in 2014. Fitch expects the trend of shrinking
deficit in 2017-2018 to be driven by the recovering profits of
the republic's key industrial tax payers.

The republic's expenditure remains rigid, with the share of
inflexible current transfers exceeding 80% of operating
expenditure in 2013-2015. The region's financial flexibility is
also limited, as the scope for capex reduction is almost
exhausted, with capital outlays decreasing to below 10% of total
spending in 2014-2015 (2011-2013: average 15%). Fitch said, "We
expect capex to remain at this level in 2016-2018, unless Karelia
receives additional capital transfers from the federal
government."

The republic's interim direct debt (bonds and bank loans)
decreased in absolute terms to RUB9.4bn by end-August 2016, from
RUB12bn in 2015. This is due to greater use of low-cost budget
loans, which by end-August 2016 rose to 11.7bn (2015: RUB9bn).
Those loans are low in interest cost and have extended maturities
stretching up to 2034. As a result the republic's interim direct
risk and liquidity position stabilized at RUB21.1bn (2015:21bn)
and RUB1.1bn as of end-August 2016 (2015: RUB1bn), respectively.

Karelia's tax base has historically been sound, supporting above-
national median wealth metrics. However, fiscal changes
introduced in 2012-2013 by the federal government have had a
deeply negative effect on the republic's fiscal capacity. In
addition, prospects for a swift recovery of Russia's economy
remain weak; in its restated forecast Fitch expects continued,
albeit slower, contraction in the national economy of 0.5% in
2016 (2015: -3.7%).

Russia's institutional framework for subnationals is a constraint
on the republic's ratings. Frequent changes in the allocation of
revenue sources and assignment of expenditure responsibilities
between the tiers of government limit Karelia's forecasting
ability and negatively affect the republic's fiscal capacity and
financial flexibility. Fitch expects the region's dependence on
financial support from the federal government to increase in
2016-2018.

RATING SENSITIVITIES

Growth of direct risk above 85% of current revenue, together with
a negative operating balance for two years in a row, would lead
to a negative rating action.

A positive rating action could result from stabilized fiscal
performance with operating surpluses leading to sufficient
coverage of interest costs.


MOSCOW CITY: S&P Affirms 'BB+' Issue Rating on EUR407-Mil. LPNs
---------------------------------------------------------------
S&P Global Ratings affirmed its 'BB+' issue rating on the City of
Moscow's EUR407 million loan participation notes (LPNs).

The LPNs were issued by Dresdner Bank (now Commerzbank AG) on
Oct. 20, 2006, with an annual coupon of 5.064% and a maturity
date of Oct. 20, 2016.  The issuer used the proceeds of the LPNs
to make a loan to the City of Moscow, which secures the LPNs.

In prior reviews, S&P incorrectly applied its "Methodology For
Rating Non-U.S. Local And Regional Governments," to rate the LPNs
by equalizing S&P's issue rating on the LPNs with its rating on
Moscow (BB+/Stable/--).  Instead, S&P should have used this
criterion (paragraph 154) to equalize its rating on the
underlying loan with S&P's rating on Moscow and then applied its
"Global Methodology For Rating Repackaged Securities" criteria,
as adapted using S&P's "Principles Of Credit Ratings," since the
issuer is a bank and not a special purpose vehicle.  By correctly
applying these criteria, the resulting issue rating on the LPNs
remains unchanged at 'BB+', which is the lower of S&P's rating on
Commerzbank AG (BBB+/Stable/A-2) and the issue rating on the
underlying loan.

S&P also believes that the timely coupon payments made since the
LPNs were issued demonstrate the willingness of Moscow and
Commerzbank to continue to meet their respective obligations
under the underlying loan and the LPNs.  Moscow also has the
ability to repay the principal due on the underlying loan at
maturity, given that EUR407 million comprises less than 10% of
Moscow's average cash reserves over the past 12 months.


MOSCOW REGION: Fitch Affirms 'BB+' Long-Term IDR
------------------------------------------------
Fitch Ratings has affirmed the Moscow Region's Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) at 'BB+' with
Stable Outlooks and Short-Term Foreign Currency IDR at 'B'. The
agency has also affirmed the region's National Long-Term Rating
at 'AA(rus)' with a Stable Outlook.

The affirmation reflects Fitch's unchanged base case scenario
regarding the region's stable budgetary performance, high self-
financing capacity and low debt.

KEY RATING DRIVERS

The 'BB+' ratings reflect Moscow region's strong operating
performance, an expected moderate capex-driven deficit, low net
overall risk and wealth and economic indicators that are above
the national median. The ratings also factor in the extensive
public sector, which raises contingent risk to the region's
budget, the weak institutional framework for Russian sub-
nationals, and deteriorated economic environment.

Fitch projects the region will record a strong operating balance
at about 10% of operating revenue over the medium term, which is
in line with its average level in 2013-2015. This balance will be
sufficient for direct debt servicing to cover both interest and
principal repayments. The stable performance will be supported by
the region's developed and well-diversified tax base, which we
expect will support annual tax revenue growth of 3%-6% in 2016-
2018.

In 8M16, Moscow region recorded RUB24bn surplus and its cash
balance improved to RUB64bn (2015: RUB56bn) as the large budgeted
annual capital expenditure was postponed until the end of 2016.
Fitch forecasts cash balance to moderately erode over the medium
term as the region will incur material capex of about RUB70bn per
year (15%-18% of total expenditure) to fund the construction of
local social facilities and transport infrastructure. Fitch said,
"We project the region's annual result will be in deficit of 3%-
5% of total revenue in 2016-2018 after a balanced budget in
2015."

Fitch forecasts the region's self-financing capacity will remain
strong and its current balance, capital revenue and cash balance
will cover about 90% of capex. Fitch said, "Therefore, new
borrowings will be moderate and we project direct risk will
stabilize at 30% of current revenue over the medium term (2015:
27%)." In 8M16, Moscow region repaid about RUB30bn bank loans,
which led a 30% reduction in direct risk to RUB69bn. At 1
September, direct risk comprised 55% bank loans and 45% budget
loans. However, Fitch projects direct risk will return to its
2015 level of about RUB100bn by end-2016 as the region will issue
bonds and contract bank loans to fund capex.

Moscow Region directly and indirectly controls an extensive
public sector, consisting of more than 100 companies. This
creates contingent risks for the regional budget through
administrative expenses, current subsidies and potential demand
on extraordinary support to the sector. At present, Fitch does
not consider risk from the sector to be significant due to the
large size of the region's budget and its prudent debt practice,
with no material guarantees provided to the public sector.

The region's credit profile remains constrained by the weak
institutional framework for Russian local and regional
governments (LRGs), which has a shorter record of stable
development than many of its international peers. Weak
institutions lead to lower predictability of Russian LRGs'
budgetary policies, which are subject to the federal government's
continuous reallocation of revenue and expenditure
responsibilities within government tiers.

Moscow region has a well-diversified economy based on services
and processing industries that provide stable tax proceeds to the
region's budget, which account for about 90% of its operating
revenues. The region's proximity to the City of Moscow (BBB-
/Negative/F3) supports its wealth and economic indicators being
above the national median. In 2014, GRP per capita was 29% above
the national median and in December 2015 the average salary was
55% over the national median.

Fitch expects the region's economic indicators should remain
strong in the national context, although GRP growth will likely
to be low in 2016-2017, after a 3.3% contraction in 2015. Fitch
projects a GDP decline of 0.5% for Russia in 2016 and a moderate
1.3%-2.0% restoration in 2017-2018. Fitch said, "We expect this
mild improvement will support Russian sub-national economies'
growth."

RATING SENSITIVITIES

Restoration of the operating margin to the historical high of 15%
or above, accompanied by sound debt metrics with a direct risk-
to-current balance (2015: 2.1 years) below the weighted average
debt maturity profile (2015: 2.5 years) and a Russian economic
recovery, could lead to an upgrade.

Sharp growth of direct risk to above 50% of current revenue,
coupled with deterioration of operating performance resulting in
weak debt coverage, could lead to a downgrade.


ROSNEFT OJSC: S&P Affirms 'BB+' CCR, Outlook Stable
---------------------------------------------------
S&P Global Ratings affirmed its 'BB+' long-term corporate credit
rating on Russia's Oil Company Rosneft OJSC.  The outlook on the
rating is stable.

The affirmation reflects S&P's view that Rosneft's credit metrics
will not weaken materially after its acquisition of Bashneft.  A
50% stake in Bashneft was sold to Rosneft for Russian ruble (RUB)
330 billion (about US$5 billion).  S&P takes into account the
possibility that Rosneft will have to do a mandatory buyout of
minorities, which could require additional cash outlays.  But
even so, S&P thinks that Rosneft will maintain funds from
operations (FFO) to debt of not less than 20% on average in the
next three years.

In S&P's view, the financing of the acquisition will not pose any
material liquidity challenges, since Rosneft has accumulated a
significant cash cushion of $22 billion, which it could use to
finance this and other potential acquisitions, including a 49%
stake in Essar Oil.  In addition, Rosneft is set to receive above
$3 billion from the sale of minority stakes in its large Vankor
and Taas-Yuryakh oilfields, which should support liquidity and
credit metrics.  S&P continues to assess Rosneft's financial
policy as aggressive and S&P do not rule out further acquisitions
or shareholder distributions, which could lead to a large debt
increase.

From a business prospective, S&P thinks the Bashneft transaction
somewhat enhances Rosneft's business risk profile.  Bashneft
operates a number of refineries, which are among the strongest in
Russia and compare favorably with peers and Rosneft's own
refineries.  However, the acquisition will not fundamentally
change our view on Rosneft's business risk profile, which remains
primarily constrained by Russian country risk and dependence upon
tax system decisions by the Russian government.

"Our assessment of Rosneft's business risk profile reflects its
status as Russia's largest and one of the world's largest oil
companies by reserves and production.  The key constraint on
Rosneft's business risk is the company's exposure to Russia,
where most of its cash-generating assets are located.  In
particular, Rosneft is subject to heavy taxes, similar to other
oil companies in Russia.  High taxes limit profit generated per
barrel produced, and increase sensitivity of future profits to
potential changes in the tax system, in our view.  The Russian
government is significantly dependent on the taxes from the oil
and gas sector. Therefore, we believe there are risks to the
stability of the current tax system, although in our base-case
scenario we do not anticipate pronounced changes in 2016-2017,"
S&P said.

"Our assessment of Rosneft's financial risk profile reflects our
expectation of limited potential for improvement in credit
metrics due to acquisitions and increased capex.  After two years
of relatively moderate capex and solid free operating cash flow
generation, Rosneft has increased its investments, thereby
constraining discretionary cash flow, which will become
materially positive only in 2018 when production increases.  We
adjust Rosneft's debt for the prepayments of RUB1,785 billion
under long-term supply contracts, including its 25-year supply
agreement with China National Petroleum Corporation.  We treat
obligations under these contracts as a debt-like instrument,
which also carries interest," S&P noted.

S&P's rating on Rosneft also factors in S&P's expectation of a
very high likelihood of government support, reflecting S&P's
assessment of Rosneft's very important role in the Russian
economy and its very strong links with the government.

The stable outlook on Rosneft mirrors that on the Russian
Federation, Rosneft's controlling shareholder.  S&P assumes that
Rosneft's FFO to debt, as adjusted by S&P Global Ratings, will
remain at about 20% in 2017.  S&P believes that Rosneft's credit
metrics have limited potential to improve in 2017, in the absence
of more asset disposals than we currently assume, as the company
is undertaking a number of investment projects that will
constrain free cash flow generation.

S&P would likely lower the rating on Rosneft if S&P was to lower
its rating on Russia, given that S&P considers Rosneft a
government-related entity (GRE) with a very high likelihood of
extraordinary support.

The rating could also come under pressure if S&P was to revise
down its assessment of Rosneft's stand-alone credit profile
(SACP) by two notches to 'b+'.  However, this would only occur in
the event of liquidity pressures or a material increase in
leverage -- a scenario S&P sees as unlikely over the next 12
months.

S&P sees no upside potential for Rosneft in the next 12 months.
An upward revision of S&P's SACP on Rosneft -- which is also
unlikely given the current leverage forecast -- would not result
in an upgrade because of Rosneft's status as a GRE with very
strong links to the government.  S&P believes that the rating on
Rosneft cannot exceed that on the government.


SIBERIAN COAL: Moody's Assigns Then Withdraws Ba3 CFR
------------------------------------------------------
Moody's Investors Service has assigned a Ba3 corporate family
rating and a Ba3-PD probability of default rating to Siberian
Coal Energy Company, JSC (SUEK).  The outlook on the ratings is
stable. Concurrently, Moody's has withdrawn the Ba3 CFR, Ba3-PD
PDR and stable outlook of SUEK LTD.

Moody's has also assigned a provisional (P)Ba3 (LGD4) senior
unsecured rating to the proposed up to RUB10 billion domestic
bonds to be issued by SUEK Finance, a Russian-domiciled limited
liability company and a 100% subsidiary of SUEK.

Moody's issues provisional ratings in advance of the final sale
of securities, and these ratings represent only the rating
agency's preliminary opinion.  Upon a conclusive review of the
transaction and associated documentation, Moody's will assign
definitive ratings to the securities.  A final rating may differ
from a provisional rating.

The withdrawal of the ratings of SUEK LTD and assignment of
ratings to SUEK follows the company's corporate reorganization,
as a result of which SUEK has become the ultimate holding company
of the group, consolidating all of the group's assets.  Under the
new group structure, SUEK directly controls hard coal and
infrastructure assets of the group, while SUEK LTD (100%
subsidiary of SUEK) controls brown coal assets and international
trading business.

                         RATINGS RATIONALE

   -- ASSIGNMENT OF Ba3 RATING

SUEK's Ba3 rating takes into account the company's status as a
global thermal coal producer, its competitive operating costs on
the back of weak rouble and cost efficiency measures, its vast
coal reserves and fairly simple geology, well-diversified
domestic and international customer base, and Moody's expectation
that SUEK's financial metrics will be resilient to the global
coal market volatility.

The rating also reflects the resilience of the company's domestic
sales owing to the proximity of its mines to its power generation
customers, and its control over a considerable portion of its
transportation infrastructure (including ports in Vanino,
Murmansk and Maly), such that it is positioned to efficiently
service Pacific and Atlantic export markets.

At the same time, the rating factors in volatile thermal coal
prices in seaborne markets, the company's limited product
diversification as a result of its exposure to a single
commodity, thermal coal, its sizeable railway expenses and risks
related to the company's concentrated ownership structure,
although mitigated by corporate governance improvements.

   -- ASSIGNMENT OF (P)Ba3 RATING

The (P)Ba3 senior unsecured rating assigned to SUEK Finance's
proposed up to RUB10 billion domestic bonds is at the same level
as SUEK's CFR, which reflects Moody's assumptions that (1) the
bonds will rank pari passu with other unsecured and
unsubordinated obligations of SUEK's group; and (2) the share of
debt secured with tangible assets in SUEK group's total debt will
remain immaterial.

SUEK Finance will issue the bonds for the sole purpose of
financing loans to SUEK and/or SUEK LTD.  Moody's expects that
the issuance proceeds will be mostly used for repayment of part
of the group's existing debt.

The bondholders will benefit from SUEK's and SUEK LTD's
irrevocable offers to acquire the bonds in the event of default.
The provision of the irrevocable offers to acquire bonds was
intended to provide the same level of support to the holders of
the proposed bonds as to the holders of SUEK Finance's existing
domestic bonds maturing in 2020-25 (with put options in 2018-20),
which benefit from a similar irrevocable offer provided by SUEK
LTD and a surety by SUEK (note that SUEK does not provide surety
for the proposed bonds).  Moody's understands that for the
proposed bonds SUEK will provide an irrevocable offer instead of
a surety because of softer disclosure and reporting requirements
for an offeror under the current regulation, compared with those
for a surety provider.  Given the irrevocable offers provided by
SUEK and SUEK LTD, holders of the proposed bonds will rely on the
creditworthiness of both entities to service and repay the debt.

The surety under SUEK Finance's existing bonds is in a form that
should give bondholders the ability to make a claim on SUEK for
repayment of the bonds if SUEK Finance defaults.  However, under
Russian suretyship law SUEK has certain rights to raise defences
to bondholder claims and therefore to avoid or reduce its
liability.

The irrevocable offer provided by SUEK entitles bondholders to
require SUEK to enter into a purchase agreement for their bonds
if certain events occur, such as payment default by SUEK Finance
or its insolvency.  In substance the offer appears to be similar
to a put option.  There are some uncertainties surrounding the
enforceability of put options under Russian law, although there
is some evidence to suggest that the Russian legal system will
uphold irrevocable offers.

Bondholders' claims under the irrevocable offers are in any event
subject to relatively tight timescales and formal notice
requirements, which are tighter than those under SUEK's surety
for SUEK Finance's existing bonds.  These requirements could
expose the proposed bond holders to a risk that their rights
under the offer may lapse whilst a potential default remains
outstanding under the bonds if they do not act quickly and
accurately.  As a result, Moody's assesses SUEK's irrevocable
offer as a weaker creditor protection than SUEK's surety under
SUEK Finance's existing bonds.

At the same time, the assessment positively considered that
SUEK's self-interest in maintaining the creditworthiness and
business viability of SUEK Finance is quite substantial.  This
does not fully mitigate potential legal deficiencies in the
irrevocable offer, but is sufficient for the rating of the
proposed bonds to be aligned with SUEK's Ba3 CFR and the Ba3
rating of SUEK Finance's existing bonds.  The factors considered
were (a) the degree to which the operations of the companies are
interwoven; (b) the degree to which the operations of SUEK
Finance are integral to SUEK; (c) the degree of business and
financial disruption that would result for SUEK or its corporate
family if payments by SUEK Finance are not made on time; and (d)
the extent to which the support package, while generally
deficient in some respects, still represents a relatively strong
commitment within the current limitations of Russian Law.

While the proposed bonds' rating is currently at the same level
as SUEK Finance's existing bonds' Ba3 ratings, the proposed
bonds' rating could be positioned lower than SUEK Finance's
existing bonds' ratings if the credit profile of SUEK weakens
resulting in a lower rating, in which case Moody's might
differentiate the ratings of the proposed bonds and existing debt
instruments based on the relative strength of their creditor
protection.  Moody's could also differentiate the instruments
ratings if the share of debts with stronger creditor protection
compared to those in the existing instruments in the group's
total debt were to increase materially.

   -- WITHDRAWAL OF SUEK LTD'S RATINGS

Moody's has withdrawn SUEK LTD's ratings because of the corporate
reorganization, as a result of which SUEK has become the ultimate
holding company of the group.  Going forward, SUEK will
consolidate all the group's assets and will be the reporting
entity for the consolidated group.  Under the new group
structure, SUEK directly controls hard coal and infrastructure
assets of the group, while SUEK LTD (100% subsidiary of SUEK)
controls brown coal assets and international trading business.

                 RATIONALE FOR THE STABLE OUTLOOK

The stable rating outlook reflects Moody's expectation that SUEK
will (1) maintain its Moody's-adjusted debt/EBITDA below 3.5x on
a sustainable basis; (2) continue to generate positive free cash
flow on a sustainable basis; and (3) retain adequate liquidity.

                 WHAT COULD CHANGE RATINGS UP/DOWN

Moody's could upgrade SUEK's ratings if the macroeconomic
environment in Russia were to stabilize, thermal coal prices in
export markets were to recover sustainably, the company were to
reduce its Moody's-adjusted debt/EBITDA below 2.5x on a
sustainable basis and maintain adequate liquidity.

Moody's could downgrade SUEK's ratings if the company's Moody's-
adjusted debt/EBITDA were to exceed 3.5x on a sustained basis,
the company were unable to generate positive free cash flow, or
its liquidity and liquidity management were to deteriorate
materially.

                      PRINCIPAL METHODOLOGY

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

SUEK is a holding company of Russia's largest producer of thermal
coal and one of the world's top thermal coal producers.  SUEK
operates 14 opencast and 12 underground mines in seven geographic
regions in Siberia and the Russian Far East.  In 2015, the
company generated revenues of $4.1 billion and Moody's-adjusted
EBITDA of $1 billion.  SUEK owns rail infrastructure, rail
rolling stock, Vanino Bulk Terminal (a coal terminal at Vanino in
the Sea of Japan), a 39.3% stake in the voting shares of the ice-
free Murmansk Commercial Seaport in the northwest of Russia and a
49.9% stake in Maly Port.  The company's principal ultimate
beneficiary is Mr. Andrey Melnichenko.


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


BBVA-6 FTPYME: S&P Affirms D Rating on Class C Notes
----------------------------------------------------
S&P Global Ratings raised to 'BBB+ (sf)' from 'CCC- (sf)' its
credit rating on BBVA-6 FTPYME Fondo de Titulizacion de Activos'
class B notes.  At the same time, S&P has affirmed its 'D (sf)'
rating on the class C notes.

S&P has used the latest available investor report and loan level
data to perform S&P's analysis and have applied its European
small and midsize enterprise (SME) collateralized loan obligation
(CLO) criteria and S&P's current counterparty criteria.  S&P has
also applied its structured finance ratings above the sovereign
(RAS) criteria.

BBVA-6 FTPYME is a single-jurisdiction cash flow CLO transaction
securitizing a portfolio of SME loans that Banco Bilbao Vizcaya
Argentaria, S.A. originated in Spain.  The transaction closed in
June 2007.

                        CREDIT ANALYSIS

S&P has applied its European SME CLO criteria to determine the
scenario default rates (SDRs) -- the minimum level of portfolio
defaults that S&P expects each tranche will be able to withstand
at a specific rating level using CDO Evaluator.

To determine the SDR, S&P adjusted the archetypical European SME
average 'b+' credit quality to reflect these factors: Country,
originator, and portfolio selection.

S&P ranked the originator into the moderate category.  Taking
into account Spain's Banking Industry Country Risk Assessment
(BICRA) score of '5', S&P has applied a downward adjustment of
one notch to the 'b+' archetypical average credit quality.  Due
to the absence of information on the creditworthiness of the
securitized portfolio compared with the originator's entire loan
book, S&P further adjusted the average credit quality downward by
three notches.

As a result of these adjustments, S&P's average credit quality
assessment of the portfolio was 'ccc', which S&P used to generate
its 'AAA' SDR of 82.70%.

S&P has calculated the 'B' SDR, based primarily on its analysis
of historical SME performance data and S&P's projections of the
transaction's future performance.  S&P has reviewed the
portfolio's historical default data, and assessed market
developments, macroeconomic factors, changes in country risk, and
the way these factors are likely to affect the loan portfolio's
creditworthiness.  As a result of this analysis, S&P's 'B' SDR is
10%.

S&P interpolated the SDRs for rating levels between 'B' and 'AAA'
in accordance with its European SME CLO criteria.

                      RECOVERY RATE ANALYSIS

At each liability rating level, S&P applied a weighted-average
recovery rate (WARR) based on its SME criteria, weighted based on
whether the loan was secured or unsecured.  As a result of this
analysis, S&P's WARR assumption in 'A' scenarios was 33.7%.

                        CASH FLOW ANALYSIS

S&P used the portfolio balance that the servicer considered to be
performing, the current weighted-average spread, and the above
weighted-average recovery rates.  S&P subjected the capital
structure to various cash flow stress scenarios, incorporating
different default patterns and interest rate curves, to determine
the rating level, based on the available credit enhancement for
each class of notes under S&P's European SME CLO criteria.

At S&P's last review, the issuer owed EUR24.88 million to the
Kingdom of Spain under a state guarantee.  In S&P's opinion, as
long as the issuer had not fully redeemed its liability to the
state, the class B notes were highly vulnerable to non-payment of
interest.  This obligation was a primary driver of S&P's previous
rating of 'CCC- (sf)' on the class B notes.  However, this
liability has now been repaid and therefore no longer constrains
the ratings on the transaction.

                            COUNTRY RISK

S&P's long-term rating on Spain is 'BBB+'.

As noted above, S&P has applied its updated RAS criteria.  Based
on S&P's RAS criteria, the notes can be rated up to four notches
above the rating on the sovereign.  However, the results from
S&P's cash flow modelling are not sufficiently robust to support
this.  Accordingly, S&P has raised the ratings on the class B
notes to 'BBB+ (sf)' from 'CCC- (sf)', in line with the rating on
Spain.

S&P has affirmed its 'D (sf)' rating on the class C notes because
this class has previously defaulted on the full and timely
payment of interest.

RATINGS LIST

Class              Rating
            To                From

BBVA-6 FTPYME Fondo de Titulizacion de Activos
EUR1.5 Billion Floating-Rate Notes

Rating Raised

B           BBB+ (sf)          CCC- (sf)

Rating Affirmed

C           D (sf)


PESCANOVA SA: Successor Alleges Breaches of Securities Law
----------------------------------------------------------
Undercurrent News reports that a regulatory filing indicates
representatives of Nueva Pescanova, the successor firm to the
troubled Spanish fishing giant, have sued the old company,
Pescanova S.A., alleging breaches of securities law.

According to Undercurrent News, Nueva Pescanova specifically
alleges that during the 2014 merger that formed it from the
remnants of debt-embattled Pescanova, the former company reserved
"alleged advantages" from Nueva Pescanova.  The new company would
like to be indemnified for those advantages, Undercurrent News
relays, citing the filing.

The advantages reportedly included Nueva Pescanova's obligation
to provide a cost-free loan to Pescanova of up to EUR200,000
(US$219,000) annually to cover its administrative costs,
Undercurrent News discloses.  Additionally, the lawsuit questions
a clause in the contract that allows Pescanova to stay in Nueva
Pescanova's offices free of cost, Undercurrent News notes.

In response, Pescanova, as cited by Undercurrent News, said in
the regulatory filing that it considered the allegations made in
the lawsuit to be "deliberate ignorance" of the facts of the
restructuring effort.

Pescanova SA is a Galicia-based fishing company.  The company
catches, processes, and packages fish on factory ships.  It is
one of the world's largest fishing groups.

Pescanova filed for insolvency on April 15, 2013, on at least
EUR1.5 billion (US$2 billion) of debt run up to fuel expansion
before economic crisis hit its earnings.  The Pontevedra
mercantile court in northwestern Galicia accepted Pescanova's
insolvency petition on April 25.  The court ordered the board of
directors to step down and proposed Deloitte as the firm's
administrator.


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


BHS GROUP: Green's Lawyers Balk at MPs' Report on Collapse
----------------------------------------------------------
According to BBC News, lawyers for Sir Philip Green have accused
MPs of making "very serious factual and legal errors" in their
report about the BHS collapse.

The review, commissioned by the retail tycoon, comes as
parliament prepares to debate stripping him of his knighthood,
BBC relays.

According to BBC, Lord Pannick QC and Michael Todd QC call the
MPs' findings "bizarre" and "unsupportable".  They claim Sir
Philip's decision to sell BHS to Dominic Chappell was an "honest
mistake".

"The Taveta directors very much regret the terrible impact that
the failure of BHS has had on former BHS staff and BHS pensioners
and we accept that, with hindsight, it was a mistake to sell BHS
to Retail Acquisitions Limited and Dominic Chappell," BBC quotes
a statement issued by Sir Philip's holding company, Taveta
Investments, as saying.   "But it was an honest mistake and the
sale was made in good faith to a buyer who retained a large team
of well-known professional advisers, including Olswang and Grant
Thornton."

However, it added: "There was nothing unlawful, improper or even
unusual about Taveta and Sir Philip Green's decision to assist
Dominic Chappell and Retail Acquisitions Limited in the purchase
of BHS.  The Select Committees' criticism in this regard is
bizarre," says the report.

The QCs' review claimed that the select committees' inquiry
process was "so unfair that, if parliamentary privilege did not
prevent a legal challenge, a court would 'set aside' the report",
BBC relates.

A joint report by MPs on the Business and Work and Pensions
select committees held Sir Philip responsible for leaving BHS
with a GBP571 million pension deficit, taking about GBP400
million in dividends from the department store chain and selling
it to Mr. Chappell, a former bankrupt, for just GBP1, BBC
discloses.

The retailer's collapse resulted in the loss of 11,000 jobs and
has left 20,000 pensions in limbo as the Pensions Regulator
remains in talks about the scheme's future, BBC states.

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


DICKENS WORLD: Shuts Doors Due to Financial Issues
--------------------------------------------------
Matt_Jackson at Kent Live reports that one of Medway's most
popular attractions has suddenly closed on Oct. 12 after years of
financial uncertainty.

Kent Live says Dickens World has had a chequered history since
its opening in 2007, and was dogged by financial issues.

According to the report, the project cost over GBP60 million and
was set out to attract the thousands of tourists who flock to
Rochester's Dickens festivals each year.

However, the company behind the operation, Dickens World Ltd,
filed for insolvency in June 2013, after reported losses of up
GBP1 million pounds a month, says Kent Live.


ENQUEST PLC: Moody's Affirms Caa1 Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service has affirmed EnQuest Plc's corporate
family rating at Caa1 and senior unsecured rating on the $650
million notes at Caa2.  At the same time, Moody's has downgraded
the company's probability of default rating (PDR) to Ca-PD from
Caa1-PD.  The outlook on all ratings remains negative. Moody's
will likely view the proposed restructuring of its debt as a
distressed exchange if executed as announced, which would be
considered a default as per Moody's definitions.

This rating action follows the company's announcement on Oct. 13,
2016, of a proposed financial restructuring.  The restructuring
will include the implementation of the proposed changes to the
existing RCF facility and senior unsecured notes, renewal of the
Surety Bond Facilities and the issuance of equity.  The existing
RCF starts amortizing in Q4 2017 and the $650 million notes and
GBP155 million retail bond mature in April 2022 and February
2022, respectively.  The RCF and the notes in aggregate comprise
the bulk of the company's outstanding indebtedness.

                          RATINGS RATIONALE

On Oct. 13, 2016, EnQuest announced a proposal for a debt
restructuring of the group as the company does not expect to make
the interest payment due on Oct. 17, 2016, on its $650 million
2022 notes.  The key proposed amendments to the existing RCF
include extending the final maturity date to October 2021 from
October 2019, amend the amortization profile and the margins and
reset certain financial covenants.  The proposed key changes to
the bonds include interest payments to be capitalized if oil
price is lower than $65/bbl over the last 6 months, amend the
maturity dates of the bonds to April 2022, with an option
exercisable by the company at its discretion to extend it further
to October 2023.  The company has also launched an equity
offering of $100 million, which is partly committed and funded by
the CEO.

As per Moody's definition, a restructuring would be considered a
distressed exchange if (1) an issuer offers creditors a new or
restructured debt, or a new package of securities, cash or assets
that amount to a diminished financial obligation relative to the
original obligation and 2) the exchange has the effect of
allowing the issuer to avoid a bankruptcy or payment default in
the future. Under Moody's definition a distressed exchange is
considered as a default.

If the company does not make the interest payment due on 17
October within the 30 day grace period; this would be a missed
payment default.  Also, if the restructuring is executed
successfully, Moody's will likely view this as a distressed
exchange, which is a default as per Moody's definitions.  The PDR
of Ca-PD reflects this high probability of default.

The Caa1 CFR reflects EnQuest's high leverage (Moody's adjusted)
of 5.2x in 2015 and execution risk to bring Kraken into
production even if the restructuring is successfully executed,
although Moody's notes that production from Kraken should support
cash flow generation in 2017 and lead to an improvement in
liquidity and deleveraging thereafter.  Moody's also notes that
should the restructuring be completed successfully, the
additional $100 million of equity financing will support the
company's liquidity profile.  The CFR of Caa1 balances the
current weak capital structure with high leverage, stretched
liquidity, and the high likelihood of a default, against the
expectation that there will be no loss of principal to lenders as
part of the imminent restructuring and no certainty that such a
haircut will be needed in future to restore the company's
viability.

Rating Outlook

The negative outlook on the ratings reflects the execution risk
on the proposed restructuring and the liquidity pressure in 2016-
2017 combined with operating risks until Kraken is on stream in
2017.

What Could Change the Rating - Up

Although less likely in the near term, successfully executing the
restructuring process resulting in a stronger liquidity position
and ramping up of the Kraken project leading to deleveraging
could lead to an upgrade on the rating.

What Could Change the Rating - Down

The Caa1 corporate family rating could come under pressure if (i)
the restructuring is not executed successfully leading to a
default for e.g. a missed payment; or (ii) a material delay
and/or cost overruns in the development of Kraken oil field,
delayed growth or operating issues.

The principal methodology used in these ratings was "Global
Independent Exploration and Production Industry" published in
December 2011.

EnQuest Plc is an independent oil and gas development &
production company with the majority of its asset base on the
United Kingdom Continental Shelf (UKCS) region of the North Sea.
The company also is building new production base in Malaysia,
which contributed about 22% of total production in H1 2016.
EnQuest pursues a development led strategy, with a focus on
acquiring and developing producing or near-production assets.

At the end of 2015 EnQuest had 2P reserves of 216mmboe, with an
average daily production of 36,567 boepd in 2015, up from 27,895
boepd in 2014.


EXHIBIT: Trading Woes Prompt Administration, 100 Jobs Affected
--------------------------------------------------------------
John Mulgrew at Belfast Telegraph reports that Exhibit, which had
been trading under the name Cucco Retail Limited, has entered
administration with the loss of around 100 jobs.

It's understood staff were told on Oct. 17 that the company had
entered administration, and jobs were being lost, Belfast
Telegraph relates.

According to Belfast Telegraph, a general downturn in trading
conditions, coupled with a significant change in consumer
spending patterns over recent times, has significantly impacted
on the company's trade and has resulted in the appointment of
Joint Administrators.

James Neill -- james@hnhgroup.co.uk -- and Rachel Foster --
rachel@hnhgroup.co.uk -- of HNH Group have been appointed as
joint administrators, Belfast Telegraph relates.

"The joint administrators and their staff are currently
undertaking an immediate assessment of the financial position of
the company and its assets.  Once this is complete the joint
administrators will have a clearer picture of the future options
available to them," Belfast Telegraph quotes the company as
saying in a statement.  "Our immediate priority is to communicate
with the key stakeholders of the business, including employees,
creditors and landlords."

Exhibit is a Northern Ireland womenswear chain.  It has 14 stores
and concessions across Northern Ireland.


JOLLY GOOD: Calls In Liquidator, Nov. 3 Creditors' Meeting Set
--------------------------------------------------------------
Owen Hughes at Daily Post reports that Jolly Good Vehicle Rentals
has called in an insolvency firm to liquidate the company.

"We have been instructed to assist the directors of Jolly Good
Vehicle Rentals Limited to liquidate the company," Daily Post
quotes a spokesman for insolvency firm Parkin S Booth & Co. as
saying.

"This company operated from a depot in Wrexham.  We are not
instructed on any other company trading under the style of 'Jolly
Good Van Hire'.

"There are several other outlets which operate under different
limited companies which are not involved in this liquidation."

According to Daily Post, a meeting of creditors for the company
will be held at The Racquet Club, The Hargreaves Building, Chapel
Street, Liverpool on Nov. 3.

Jolly Good Vehicle Rentals is a vehicle rental company.  It has
eight branches and franchise partners in Wales and on the Welsh
border.


STANDARD CHARTERED: Fitch Cuts Capital Securities Rating to 'BB+'
-----------------------------------------------------------------
Fitch Ratings has affirmed Standard Chartered PLC's (SC) and
Standard Chartered Bank's (SCB) Long-Term Issuer Default Ratings
(IDRs) at 'A+' and downgraded their Viability Ratings to 'a' from
'a+'. The Outlook on the banks' Long-Term IDRs has been revised
to Stable from Negative.

The downgrade of the banks' Viability Ratings reflects the
consolidated group's weakened intrinsic strength, characterized
by a high level of non-performing loans (NPLs) and a softer
outlook for capital generation.

The banks' Long-Term IDR is affirmed at one notch above the
Viability Rating to reflect the presence of a significant buffer
of qualifying junior debt, which Fitch expects to be maintained
and sees as sufficient to protect senior obligations from default
in case of failure.

KEY RATING DRIVERS

IDRS AND SENIOR DEBT

"SC's and SCB's Long-Term IDRs and senior debt ratings are one
notch above their Viability Ratings because we believe the risk
of default on senior obligations, as measured by the Long-Term
IDR, is lower than the risk of the entities failing, as measured
by the Viability Rating," Fitch said.

The one-notch uplift is based on the presence of a significant
junior debt buffer, which could be made available to protect
senior obligations from default in case of failure, either under
a resolution process or as part of a private-sector solution,
such as a distressed debt exchange, to avoid a resolution action.
Fitch said, "Without such a private-sector solution, we would
expect a resolution action to be taken on SC when it breaches
minimum capital requirements."

SC's known capital requirement from the UK's Prudential
Regulation Authority is a common equity Tier 1 ratio (CET1) of
9.2%.

The qualifying junior debt buffer at end-1H16 was around 8.8% of
risk-weighted assets, which, in our opinion, should be sufficient
to restore the group's viability without hitting senior
creditors. This is based on an assumed intervention point of
around 6.5% of risk-weighted assets.

"We have also assumed the bank will replace maturing instruments
and raise the proportion of its junior debt to 9.5% of risk-
weighted assets by end-2017." Fitch said.

The Short-Term IDR of 'F1' maps to the lower of the two options
at the 'A+' Long-Term IDR level. While Fitch believes the banks'
funding and liquidity are solid, the Short-Term IDR does not
benefit from an uplift above the Viability Rating.

VIABILITY RATINGS

"We assign the same Viability Rating to SC and its main operating
entity, SCB, as their risk profiles are aligned and liquidity at
the top holding company is adequately managed. The equalization
of Viability Rating also considers the holding company's low
double leverage," Fitch said.

The Viability Rating captures the group's unique global network,
although it does increase organizational complexity above that of
peers. The rating considers SC's tightened strategic direction,
as well as the expected disciplined execution of its restructure.
The Viability Rating also reflects what Fitch believes to be a
weaker financial profile, characterized by a high NPL ratio and
revenue challenges. Liquidity remains sound, although Fitch
believes there are downside risks to capital.

"SC is facing a difficult operating environment and increased
regulatory challenges, but we see the bank as being determined to
execute on its tighter risk guidelines," Fitch said.

"We believe the organizational complexity inherent in SC's
business model leads to higher operational risk and increases its
confidence sensitivity compared with highly rated peers, as the
bank does not have a dominant home market. It also has a more
fragmented capital position. However, its strong franchise
enables it to compete for cross-border finance despite its
relatively small size," Fitch said.

"We believe SC's risk appetite is generally moderate, with robust
risk and reporting tools and the introduction of more
conservative limits and improved controls. However, we have
adjusted downward our assessment of this factor, as the
organization's operational risks are significant due to its
wide-ranging network and products. Further reduction of its high
industry concentrations should help to render its performance
less volatile," Fitch said.

SC's high stock of NPLs significantly surpasses peers'. Although
our base-case is that NPLs have peaked, they could stay elevated
due to headwinds in selling-off the liquidation book. "Our
assessment also addresses SC's short loan tenor profile, which we
believe could be misleading, as exiting relationships may need to
be extended and take longer to transform into cash under
challenging conditions than indicated by contractual tenors,"
Fitch said.

"We believe SC's access to capital remains sound and the bank
retains a sufficient degree of flexibility to redistribute
resources. This is notwithstanding that about 30% of its equity
is held by subsidiaries, resulting in a relatively low
unconsolidated CET1 ratio for SCB of 9.8% at end-2015. We have
calculated that raising reserves against NPLs to 100% would
reduce capital ratios by 210bps, lowering SC's consolidated Fitch
Core Capital ratio to 11.2% at end-1H16. Leverage remains low
compared with large, internationally active peers," Fitch said.

There is continuous earnings pressure from low interest-rates,
high regulatory costs, slower growth and potentially higher
impairment charges. Fitch said, "We believe management's
corrective actions can help SC return to a path of steady
earnings generation." However, it is too early to tell, for
example, whether impairment charges peaked in 2015 at 1.7% of
gross loans. The introduction of International Financial
Reporting Standard 9 by the International Accounting Standards
Board in 2018 could lead to additional charges.

Liquidity is sound. Deposits in key markets significantly exceed
loans. Unencumbered cash, balances and other liquid assets
provide flexibility, the majority of which should be portable
across jurisdictions in case of stress.

SUPPORT RATING AND SUPPORT RATING FLOOR

SC's and SCB's Support Rating of '5' and Support Rating Floor of
'No floor' reflect Fitch's opinion that senior creditors cannot
rely on receiving full extraordinary support from the UK
government if the group becomes non-viable. In our opinion, the
UK has implemented legislation and regulations that are
sufficiently progressed to provide a framework that is likely to
require senior creditors to participate in losses for resolving
even large banking groups.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

Subordinated debt and other hybrid regulatory capital securities
issued by SC and SCB are notched down from their Viability
Ratings. The ratings on SC's capital securities are notched down
five times, reflecting two notches for loss severity and three
notches for non-performance risk. SCB's legacy upper Tier 2
securities are notched down three times, with one notch for loss
severity and two notches for non-performance. Subordinated debt
is notched down once from the respective entity's Viability
Rating.

RATING SENSITIVITIES

IDRS AND SENIOR DEBT

The banks' Long-Term IDRs and senior debt ratings are notched up
from their Viability Ratings, making them sensitive to a change
in the Viability Rating. The Long-Term IDR and senior debt
ratings are also sensitive to a reduction in the size of the
qualifying junior debt buffer relative to risk-weighted assets.
This could be caused by growth or if maturing or called Tier 1 or
Tier 2 instruments are not replaced.

Fitch's base case is that the ratio will increase and remain at
around 9.5% to be able to afford protection to senior creditors.
The notching is sensitive to changes in assumptions on resolution
intervention point, post-resolution capital needs and the
development of resolution planning more generally.

VIABILITY RATINGS

The banks' Viability Ratings may be downgraded if SC's financial
position weakens, in particular, if further large loans or
earning deterioration undermines its capital strength. Outsized
fines or significant business restrictions from litigation or
conduct-related charges could also lead to a downgrade.

SC's and SCB's Viability Ratings may be upgraded if their
financial profiles improve significantly, in particular, if SC
successfully enhances its risk control and if its NPL ratio falls
closer to the historic average of 2%, while demonstrating stable
capital generation.

SC's Viability Rating and IDR are also sensitive to adverse
changes to factors that affect the holding company's notching,
including high double leverage of above 120%, less prudent
liquidity management, a more complex group structure or
regulatory and legal risks specific to the holding company.

SUPPORT RATING AND SUPPORT RATING FLOOR

The Support Rating is sensitive to changes in assumptions around
the propensity or ability of the UK sovereign to provide timely
support. An upgrade to SC's and SCB's Support Rating and upward
revision of their Support Rating Floor would be contingent on a
positive change in the sovereign's propensity to support its
banks, which is highly unlikely in Fitch's view.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

The securities' ratings are primarily sensitive to changes in the
Viability Ratings. SC's additional tier 1 securities are also
sensitive to changes in Fitch's assessment of the probability of
their non-performance relative to the risk captured in SC's
Viability Rating. This could arise due to a change in Fitch's
assessment of SC's conservative approach to capital management,
reducing its flexibility to service the securities, or an
unexpected shift in regulatory buffer requirements.

The rating actions are as follows:

   Standard Chartered PLC

   -- Long-Term IDR affirmed at 'A+', Outlook Revised to Stable
      from Negative

   -- Short-Term IDR affirmed at 'F1'

   -- Viability Rating downgraded to 'a' from 'a+'

   -- Support Rating affirmed at '5'

   -- Support Rating Floor affirmed at 'No Floor'

   -- Long-term senior unsecured debt affirmed at 'A+'

   -- Short-term senior debt affirmed at 'F1'

   -- Dated subordinated debt downgraded to 'A-' from 'A'

   -- Capital securities (US853254AC43, US853254AB69,
      US853254AA86, USGB84228AT58) downgraded to 'BB+' from 'BBB-
'

   -- Contingent convertible securities (USG84228CE61,
      US853254AT77, US853254BA77, USG84228CQ91) downgraded to
      'BB+' from 'BBB-'

   Standard Chartered Bank

   -- Long-Term IDR affirmed at 'A+'; Outlook revised to Stable
      from Negative

   -- Short-Term IDR affirmed at 'F1'

   -- Viability Rating downgraded to 'a' from 'a+'

   -- Support Rating affirmed at '5'

   -- Support Rating Floor affirmed at 'No Floor'

   -- Senior unsecured debt affirmed at 'A+'/'F1'

   -- Dated subordinated debt downgraded to 'A-' from 'A'

   -- Upper tier 2 notes (XS0222434200, XS0119816402) downgraded
      to 'BBB' from 'BBB+'


WORTHINGTON GROUP: Proposes Company Voluntary Arrangement
---------------------------------------------------------
Hannah Boland at Alliance News reports that Worthington Group PLC
on Oct. 17 said it has decided to propose terms for a company
voluntary arrangement with all its creditors, noting that its
pension fund trustees have had "no alternative but to issue" a
petition to wind up Worthington.

Worthington said the company voluntary arrangement will enable
its stakeholders to benefit from the future success of the
company, Alliance News relates.  Under the arrangement, 50% of
the proceeds after legal costs of any successful litigation
undertaken by the company will be distributed to creditors,
Alliance News discloses.  Alongside this 10% of any pretax profit
will be distributed to creditors, and 90% of the profits after
tax will be retained for the benefit of the shareholders,
Alliance News notes.

Worthington, as cited by Alliance News, said it was proposing
this arrangement to protect the pensioners' position.  The
pension fund is still "in substantial deficit" and Worthington
said it was unable to service the pension fund contributions on
an ongoing basis, Alliance News relays.  As such, Worthington
said the pension fund trustees have had "no alternative but to
issue a petition to wind up the company", Alliance News relates.
This petition will be held on Oct. 24, Alliance News discloses.

According to Alliance News, Worthington said, however, that it
expects the petition hearing to be adjourned in order to allow
the proposal for the company voluntary arrangement to be put in
place.

Worthington Group PLC is a British investment company.


* UK: Welsh Tech Firms 'at Increased Risk of Insolvency'
--------------------------------------------------------
Jonathan Symcox at BusinessCloud reports that a report has
claimed that more than a third of Welsh technology and IT
businesses are at increased risk of insolvency in the next 12
months.

Insolvency trade body R3 said 35% could go out of business,
BusinessCloud says.

That figure was equivalent to the UK average but far higher than
the percentage of all Welsh firms which are at risk -- 22%,
relates BusinessCloud.

"While the Welsh digital economy is deemed by many to be the
fastest growing outside of London, it's not unusual to have high
levels of instability in the sector," BusinessCloud quotes Alan
Bennett, regional chairman of R3 in Wales and partner at
Ashfords, as saying.

"It's easy to enter the market but many tech businesses can
struggle with financial planning and growth in the longer-term.

"Following the decision by the UK to leave the European Union,
there may be worries for the tech sector not least due to doubt
around external funding for projects and incoming business
investments."


                            *********

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

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

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


                            *********


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

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

Copyright 2016.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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                 * * * End of Transmission * * *