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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Thursday, October 27, 2016, Vol. 17, No. 213


                            Headlines


B U L G A R I A

HUVEPHARMA EOOD: S&P Raises CCR to 'BB', Outlook Stable


F I N L A N D

NORDIC PACKAGING: S&P Assigns Prelim. 'B' CCR, Outlook Stable


F R A N C E

MOBILUX 2: Fitch Assigns 'B(EXP)' Issuer Default Rating


G E R M A N Y

HANJIN SHIPPING: Seoul Court OKs Winding Down of 4 European Units


G R E E C E

ELLAKTOR SA: S&P Affirms 'B-/B' CCRs, Outlook Stable


I C E L A N D

HOUSING FINANCING: S&P Affirms 'BB/B' Counterparty Credit Ratings


I R E L A N D

SETANTA SPORTS: High Court Reserves Judgment on MIBI Appeal


I T A L Y

ATLANTES MORTGAGES NO.2: Fitch Affirms 'BB' Rating on Cl. C Notes
CLARIS 2015: Fitch Affirms 'BB+sf' Rating on Class B Debt
SESTANTE FINANCE: S&P Puts CCC+ Note Ratings on Watch Negative


L U X E M B O U R G

BREEZE FINANCE: Fitch Affirms 'CC' Rating on Class B Bonds
CRC BREEZE: Fitch Affirms 'CC' Rating on Class B Bonds


N E T H E R L A N D S

AVG TECHNOLOGIES: S&P Lowers CCR to 'BB-' then Withdraws Rating
FAB CBO 2003-1: S&P Raises Ratings on 2 Note Classes to CCC+
INVESCO MEZZANO: S&P Affirms B+ Rating on Class E Notes


P O R T U G A L

HIPOTOTTA 4: Fitch Affirms 'CCCsf' Rating on Class C Debt


R O M A N I A

* ROMANIA: Had More Than 100K Corp. Insolvencies in Past 5 Years


R U S S I A

ALMAZERGIENBANK: Fitch Affirms 'BB-' LT Issuer Default Ratings
CB FINANCIAL: Put on Provisional Administration
PERESVET JSCB: Bank of Russia Appoints Provisional Administration
PERESVET CJSC: Fitch Cuts Long Term Issuer Default Ratings to 'D'
VEK JSC: Liabilities Exceed Assets, Assessment Shows


S P A I N

ABANCA CORPORACION: S&P Affirms 'B+/B' Counterparty Ratings
ABEINSA HOLDING: Nationwide Wants Ch. 11 Examiner Appointed


S W I T Z E R L A N D

SK SPICE: S&P Affirms 'B' CCR & Revises Outlook to Stable


U N I T E D   K I N G D O M

CONSUMER ASSETS 2016-1: Fitch Assigns 'BB' Rating to Cl. D Notes
HOUSEPRINT: To Be Placed in Compulsory Liquidation
GUARDIAN SYSTEMS: In Liquidation, Cuts 44 Jobs
JOLLY GOOD: To Enter Liquidation Next Month
MAMHEAD HOUSE: Facing Liquidation as Debts Top GBP350,000

NEW WORLD: Shareholders To Vote On Liquidation
PARKDEAN RESORTS: S&P Affirms 'B' CCR & Revises Outlook to Pos.
PREFERRED RESIDENTIAL 8: S&P Raises Rating on Cl. E Notes to BB
REJUVENATE YOUR: Director Gets 13-Year Ban for Misusing Funds
SIP FRAMES: CVR Global Appointed as Administrators

XCITE ENERGY: Faces Liquidation, Shares Suspended


                            *********


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B U L G A R I A
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HUVEPHARMA EOOD: S&P Raises CCR to 'BB', Outlook Stable
-------------------------------------------------------
S&P Global Ratings raised its long-term corporate credit rating
on Bulgaria-based animal health company Huvepharma EOOD to 'BB'
from 'BB-'.  The outlook is stable.

At the same time, S&P raised its issue rating on the company's
senior secured terms loans to 'BB' from 'BB-'.  S&P equalizes the
issue rating on Huvepharma's senior secured debt with the
long-term corporate credit rating to reflect that only a small
amount of liabilities would rank ahead of the senior secured debt
in a potential default scenario.

The upgrade reflects Huvepharma's strong performance over the
past 24 months and S&P's expectation that its revenue, EBITDA,
and credit metrics will continue to strengthen in the coming
years. Despite increased capital expenditure (capex)
requirements, S&P believes the company has a sufficient buffer to
manage its strong growth plan.  The upgrade also reflects S&P's
assessment that Huvepharma's financial risk profile has improved
to intermediate.

Huvepharma is an integrated pharmaceutical company that develops,
manufactures, and markets animal health products and feed
additives.  The company is well diversified geographically, with
the large majority of its sales achieved outside Bulgaria, and a
notable portion outside Europe.  The recent acquisition of assets
from Zoetis should bolster the company's presence in the U.S.
market.  Moreover, S&P views Huvepharma's modern and efficient
plants and high-quality fermentation capacity as a key
competitive advantage.  This correlates with higher margins than
peers'. However, the concentration of the business in the swine
and poultry segments and its relatively limited product offer of
more sophisticated products, such as vaccines, constrains S&P's
assessment of the company's business risk profile in the higher
end of the weak category.

S&P expects that Huvepharma will continue to post double-digit
growth, fueled by increased volumes of existing products driven
by increased demand for animal proteins in emerging markets and
new products achieving a strong uptake.  S&P considers debt to
EBITDA as the preferred core ratio for Huvepharma, and S&P
forecasts it will be close to 3x at year-end 2016 and then
sustainably below from 2017 and on.  While S&P expects funds from
operations (FFO) to debt will remain below 30% in 2016, the
supplemental ratios such as FFO cash interest coverage is
expected at 7.8x-8.3x, which is comfortably within the range for
S&P's modest financial risk category, which is a stronger than
its current intermediate assessment.

However, increasing volumes, making additional inroads in the
animal healthcare, and developing the human division will require
significant costs and investments.  Hence, S&P expects free
operating cash flow (FOCF) to debt will not exceed 9x-10x.

Huvepharma is fully owned by Advance Properties, a family
holding. S&P believes Advance Properties will maintain a
conservative financial policy.  S&P takes the view that other
investments of the family owner will have no negative bearings on
Huvepharma EOOD.

The stable outlook reflects S&P's view that Huvepharma will
continue to grow organically while maintaining an S&P Global
Ratings' adjusted debt to EBITDA of less than 3x.

S&P could take a positive rating action if Huvepharma continues
its successful topline growth story both increasing its scale and
improving the diversity of its end-markets making inroads in the
cattle segment.

Any upside will be contingent on reaching and maintaining a free
operating cash flow to debt of 15%.

Increased leverage above 3x on a sustainable basis would trigger
a rating downgrade.  This would happen in case of high
discretionary spending.


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F I N L A N D
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NORDIC PACKAGING: S&P Assigns Prelim. 'B' CCR, Outlook Stable
-------------------------------------------------------------
S&P Global Ratings said that it assigned its preliminary 'B'
long-term corporate credit rating to Finland-based Nordic
Packaging And Container (Finland) Holdings Oy and to the parent
of the consolidated group, Nordic Packaging And Container (UK)
Intermediate Holdings Ltd. (NPCH).  The outlook on both these
entities is stable.

At the same time, S&P assigned its preliminary 'B' issue-level
rating and '3' recovery rating to the issuer's proposed secured
first-lien bank facility and S&P's preliminary 'CCC+' issue-level
rating and '6' recovery rating to its proposed secured second-
lien bank facility.  The '3' recovery rating indicates S&P's
expectation for average recovery (50%-70%; lower end of the
range) for lenders in the event of a payment default, while the
'6' recovery rating indicates S&P's expectation for negligible
recovery (0%-10%) in the event of a payment default.

The final ratings will depend on S&P's receipt and satisfactory
review of all final transaction documentation.  Accordingly, the
preliminary ratings should not be construed as evidence of final
ratings. If S&P Global Ratings does not receive final
documentation within a reasonable time frame, or if final
documentation departs from materials reviewed, S&P reserves the
right to withdraw or revise its ratings.  Potential changes
include, but are not limited to, use of loan proceeds, maturity,
size and conditions of the loans, financial and other covenants,
security, and ranking.

Nordic Packaging And Container (Finland) Holdings Oy is the
acquisition entity for Powerflute, which has received a
recommended public offer to be acquired by funds affiliated with
financial sponsor Madison Dearborn Partners Group.

Powerflute is a paper and packaging company that operates in the
paper and packaging market and coreboard markets through the
holdings of its parent, Nordic Packaging And Container (UK)
Intermediate Holdings Ltd.  Annual sales for the consolidated
group were about EUR360 million in 2015.  The company's packaging
paper segment (40% of sales, 52% of EBITDA), trading under the
Powerflute brand, is one of the only three producers of premium-
grade Nordic semi-chemical fluting, manufactured from birch wood
and used in the manufacture of corrugated board for food and
agricultural products and other end markets that require high
strength and moisture resistance.  The company's coreboard and
cores business (60% of sales, 48% of EBITDA), trading under the
name Corenso, is a manufacturer of high performance coreboard and
cores used for paper, textiles, metals, foils & films, and tapes
& labels.  Coreboard, manufactured primarily from recycled paper,
is ultimately converted into cores or used for other packaging
applications.

Although the company has a niche market position in the highly
consolidated Nordic semi-chemical fluting market and retains a
good degree of geographical and end-market diversity, its overall
scale and scope is limited compared to peers.   It has high asset
and customer concentration, with a single paper mill in Finland
for its packaging paper business, and limited pricing power.  The
coreboard and cores operations are a bit more diversified but the
market is somewhat more fragmented, especially in Europe.

Significant initial plant investments restrict new entrants in
the packaging paper business, whereas the coreboard and cores
segment is more competitive and commoditized in nature.
Powerflute maintains longstanding customer relationships with its
blue-chip paper and packaging companies for both its businesses,
deriving almost 30% of its sales from the top 10 customers.
Customer concentration and a fragmented market structure provide
customers with strong bargaining power, especially in the
coreboard business, but the semi-chemical fluting business
manages to gain some pricing differential given its premium
product offering. Powerflute manages its birch supply from its
captive wood sourcing subsidiary Harvestia, which indirectly
manages forest harvests in Finland, although the group does not
benefit from any direct or indirect ownership of the wood. In
addition, although the company is vertically integrated into
coreboard production and core converting, it externally sources
recycled-content product (RCP), one of the key raw material
inputs used in coreboard production, leading the company to be
fully exposed to volatile input costs.

S&P's view of NPCH's highly leveraged financial risk profile
reflects its high adjusted leverage of around 5x debt to EBITDA
and funds from operations (FFO) to debt of about 12% at
transaction close.  S&P's base case does not anticipate any
significant deleveraging.  S&P forecasts steady earnings growth
over the next 12 months but nevertheless expect credit metrics to
remain in the highly leveraged range, albeit at the stronger end.
S&P anticipates that the company will continue to generate
moderate free cash flow and maintain adequate liquidity while
balancing its growth objectives.

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

   -- Organic sales that are broadly flat for the next two years
      with some pricing pressure in packaging papers and a
      challenging macroeconomic environment;

   -- An adjusted EBITDA margin of about 15.5%;

   -- Capital expenditures of about EUR12 million to EUR15
      million annually; and

   -- No acquisitions and dividends forecast.

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

   -- S&P Global Ratings-adjusted debt to EBITDA of around 5x for
      2016, with the potential for some gradual improvement
      thereafter; and

   -- FFO to adjusted debt of about 12% over the next 12-18
      months.

NPCH is subject to a springing maximum net leverage covenant
under its EUR40 million RCF, when the facility is 35% drawn.  The
company expects to set covenant levels with about a 35% cushion
over its opening leverage.  S&P expects the company to be in
compliance with this covenant in the next few quarters.

The stable outlook on NPCH reflects S&P's expectation that the
company will experience fairly predictable business conditions
and generate stable cash flow over the next 12 months, based on
its strong customer relationships and stable end markets.  S&P
expects NPCH to maintain adjusted debt to EBITDA of about 5x and
FFO to debt of about 12% over the next 12 months.

S&P could raise the rating if the company showed a higher-than-
expected improvement in profitability, leading to stronger credit
metrics in line with levels S&P views as commensurate with an
aggressive financial risk profile over a sustained period.
Specifically, this would include a ratio of adjusted FFO to debt
of more than 15% and debt to EBITDA of less than 4.5x, on a
sustained basis, supported by the private equity owners
committing to a financial policy commensurate with these metrics.

S&P could lower the ratings if the company's liquidity position
deteriorates or if earnings and cash flow decline unexpectedly
because of weaker demand for its products.  S&P could also lower
the ratings if financial policy decisions weaken its financial
profile or cause financial metrics to deviate from S&P's
expectations.

A downgrade could also stem from a significant shortfall in
operating performance compared with S&P's base case.  This could
occur as a result of loss of key customers, prolonged plant
closures, or challenging macroeconomic conditions, such that
earnings and cash flow generation lead to weaker liquidity or FFO
cash interest coverage falling below 1.5x.


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F R A N C E
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MOBILUX 2: Fitch Assigns 'B(EXP)' Issuer Default Rating
-------------------------------------------------------
Fitch Ratings has assigned Mobilux 2 SAS (Mobilux), the new
holding company of French furniture retailer BUT SAS an expected
Issuer Default Rating (IDR) of 'B(EXP)', with a Stable Outlook.
Mobilux 2 SAS will absorb BUT's existing holding company
Decomeubles Partners SAS ('B-'/Rating Watch Positive) as part of
BUT's acquisition by private equity firm Clayton, Dubilier & Rice
(CD&R, 50% ownership) and WM Holding GmbH (WM Holding, 50%), an
Austrian incorporated investment company related to Austria-based
XXXLutz KG (XXXLutz), the third-largest furniture retailer in
Europe.

Fitch has also assigned Mobilux Finance SAS's proposed EUR380m
senior secured notes due 2024 a 'B+(EXP)'/'RR3'/52% expected
rating. Mobilux Finance SAS is the new debt-issuing entity set up
as part of BUT acquisition. The debt proceeds together with
existing cash and new equity provided by the new shareholders
will be used to redeem BUT SAS's existing EUR246m senior secured
notes. The final ratings are contingent upon closing of the
acquisition and receipt of final documents conforming to the
information already received by Fitch. On completion of the bond
placement and repayment of the existing bond, Fitch expects to
upgrade the IDR of Decomeubles Partners SAS to 'B' and withdraw
both this rating and the existing senior secured notes' rating.

Mobilux's IDR of 'B(EXP)' reflects Fitch's expectation that the
proposed capital structure backing CD&R's and WM Holding's buy-
out provides a level of leverage and financial flexibility
compatible with a 'B' rating. The rating also reflects BUT's
business profile, which over the past few years has been
significantly improved by measures to enhance profitability and
working-capital management. Fitch believes the entry of WM
Holding as a 50% shareholder further supports BUT's business
profile, notably by enlarging the group's potential for
profitability uplift and further improvement in working-capital
management through a purchasing arrangements with XXXLutz.

KEY RATING DRIVERS

KEY RATING DRIVERS FOR THE IDR

Moderate Refinancing Risk

Fitch believes the proposed buy-out will lead to limited
releveraging, with adjusted FFO gross leverage expected at 6.1x
at the end of the financial year ending June 2017 (FY16: 5.6x)
and to fall below 6.0x from FY18 (FY20: 5.7x). This reflects the
group's strong profitability and cash generation. At the current
rating level, Fitch calculates that BUT's cash from operations
generation capacity, measured as FFO after change in working-
capital needs, provides some headroom for network development
through owned store openings and/or bolt-on acquisitions.
However, a more aggressive financial policy resulting in lower
profitability, financial flexibility and a significant increase
in leverage could put downward pressure on the rating.

Improved Profitability

Fitch expects BUT's EBITDA margin to be sustainable at 6.5%, the
level reached at end-FY16 (FY15: 5.2%). The FY16 performance
largely reflected the gains from management's measures to
optimise the group's product offering, own-store/franchise mix
and logistics operations. Fitch believes the bulk of BUT's cost
structure has been optimised and therefore is unlikely to lead to
significant extra gains, but that its profitability should remain
supported by like-for-like sales growth, greater purchasing power
from growing volumes, and the ongoing development of the higher-
margin decoration range.

The contemplated purchasing arrangements with XXXLutz
(approximately EUR3.9bn revenues in 2015 against EUR1.5bn in FY16
for BUT), which we have not factored into our rating case yet,
should provide further support to the group's EBITDA through
enhanced purchasing power.

Limited yet Improving Diversification

Low geographic and sales channel diversification remains a key
constraint on the ratings. BUT's concentration on the French
market increases the group's vulnerability to local market swings
and limits growth opportunities over the medium term. Management
has implemented a cross-channel strategy through the development
of "click and collect"' sales, which is supported by a dense
store and pick-up point network. This is growing rapidly, though
BUT's online penetration remains low at 3.2% of total revenues in
FY16. This increases its vulnerability to more developed (either
pure online or multi-channel) competitors in a fast-growing
segment.

FCF Generation Capacity

Fitch expects BUT to generate average annual FCF at 2.4% of sales
over FY17-FY20, compared with 1.2% over FY12-FY14 and 7% in FY16.
This compares well with 'B' non-food retail peers. Aside from
EBITDA margin consistently at or above 6.5%, Fitch assumes the
sustainability of BUT's working capital needs past optimisation
(turned negative in FY16, and could be further enhanced by the
purchasing arrangements with XXXLutz) as well as limited new
store openings leading to annual average capex at 2% of sales.
Furthermore, Fitch expects reduced FCF volatility due to
increased resilience of the group's business model.

Financial Flexibility

Fitch forecasts BUT's FFO fixed charge cover to remain stable at
1.7x over FY17-FY20 despite the increased amount of debt deriving
from the buy-out. This mainly reflects Fitch's enhanced
expectations regarding BUT's EBITDA margin and therefore FFO
generation. This level remains relatively weak compared with
peers rated 'B' and reflects the asset-light business model and
increased share of directly operated stores following the
acquisition of the previously franchised 18 Yvrai stores on 1
September 2016. In our view, this is counterbalanced by the
group's adequate liquidity buffer, supported by its cash-
generative profile along with an expected moderate appetite for
acquisitions.

KEY RATING DRIVERS FOR THE SENIOR SECURED NOTES

Going-Concern Distressed Valuation

Fitch believes that expected recoveries would be maximised in a
going-concern scenario rather than in liquidation given the
asset-light nature of BUT's business, where Fitch views the brand
value and established retail network as key assets. "We have
valued the group on the basis of a 5.0x EV/EBITDA multiple
(against the 5.5x multiple in the actual contemplated
transaction) applied to an EBITDA that is 35% below FY16 levels
adjusted for the acquisition of the Yvrai stores completed in
September 2016," Fitch said. These assumptions reflect a
hypothetical adverse scenario of a significant cyclical downturn,
which could materially impact the group's profitability but would
not necessarily strongly reduce its value.

Above-Average Recoveries for the Noteholders

The expected ratings of 'B+(EXP)'/'RR3'/52% for the planned
senior secured notes reflect above-average recovery prospects for
noteholders in a default scenario. Expected recoveries are
constrained by the bondholders' contractual subordination to the
new EUR100m RCF which Fitch assumes would be fully drawn in a
distressed scenario, in accordance with our recovery ratings
criteria, as it can be used for general corporate purposes.

KEY ASSUMPTIONS

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

   -- Low single-digit like-for-like sales growth

   -- Revenue growth of 8.8% in FY17 due to the Yvrai
      acquisition, growing at 2.3% CAGR over FY17-FY20 supported
      by like-for-like sales growth and moderate network
      expansion

   -- EBITDA margin growing from 6.5% in FY16 to 6.7% in FY20

   -- Moderate annual working capital inflows driven by sales
      growth and further improvement in management of working
      capital needs

   -- Average annual capex at 2.0% of sales over FY17-FY20

   -- No dividends

   -- Average FCF at 2.4% of sales over FY17-FY20

   -- Acquisition spending of EUR47.8m in FY17 (acquisition of
      the Yvrai franchised stores), limited other franchised
      store buy-backs over FY17-FY20

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action

   -- Further improvement in scale and diversification leading to
      EBITDA margin above 8% and FCF margin above 4% on a
      sustainable basis

   -- FFO fixed charge cover sustainable above 2.0x

   -- Adjusted FFO gross leverage below 4.5x on a sustainable
      basis

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action

   -- A significant deterioration in revenues and profitability
      reflecting for example an increasingly competitive
      operating environment or a too ambitious, ill-executed
      expansion plan

   -- FFO fixed charge cover below 1.5x on a sustained basis

   -- Adjusted FFO gross leverage above 6.0x on a sustained basis

   -- Average three-year FCF below 2% of sales

LIQUIDITY

Fitch expects liquidity to remain adequate over the next four
years. It should be supported by readily available cash on
balance sheet, which Fitch estimates at its lowest at end-FY17
(EUR84m) following the buy-out transaction and the acquisition of
the Yvrai franchises stores. Liquidity should also be supported
by the group's FCF generation capacity together with the EUR100m
RCF, which can be used for general corporate purposes.
Furthermore, BUT's liquidity is supported by the bullet maturity
profile of its core debt.

FULL LIST OF RATING ACTIONS

Mobilux 2 SAS

   -- IDR 'B'(EXP), Stable Outlook

Mobilux Finance SAS

   -- Senior Secured Notes: 'B+'(EXP)/'RR3'/52%


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G E R M A N Y
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HANJIN SHIPPING: Seoul Court OKs Winding Down of 4 European Units
-----------------------------------------------------------------
Reuters reports that Hanjin Shipping Co Ltd said on Oct. 24 its
European routes services have completely halted, and a Seoul
court overseeing its receivership process has approved winding
down four of its European units.

The four units, Hanjin Shipping Europe GmbH & Co, Hanjin Shipping
Hungary Transportation Ltd, Hanjin Shipping Poland Sp and Hanjin
Spain S.A., will begin winding down by early November using
methods such as declaring bankruptcy or being liquidated, Hanjin
said in a regulatory filing, Reuters relates.

Hanjin Shipping Co., Ltd., is mainly engaged in the
transportation business through containerships, transportation
business through bulk carriers and terminal operation business.
The Debtor is a stock-listed corporation with a total of
245,269,947 issued shares (common shares, KRW 5000 per share) and
paid-in capital totaling KRW 1,226,349,735,000.  Of these shares
33.23% is owned by Korean Air Lines Co., Ltd., 3.08% by Debtor
and 0.34% by employee shareholders' association.

The Company operates approximately 60 regular lines worldwide,
with 140 container or bulk vessels transporting over 100 million
tons of cargo per year.  It also operates 13 terminals
specialized for containers, two distribution centers and six Off
Dock Container Yards in major ports and inland areas around the
world.  The Company is a member of "CKYHE," a global shipping
conference and also a partner of "The Alliance," another global
shipping conference to be launched in April 2017.

Hanjin Shipping listed total current liabilities of KRW 6,028,543
million and total current assets of KRW 6,624,326 million as of
June 30, 2016.

As a result of the severe lack of liquidity, Hanjin applied to
the Seoul Central District Court 6th Bench of Bankruptcy Division
for the commencement of rehabilitation under the Debtor
Rehabilitation and Bankruptcy Act on Aug. 31, 2016.  On the same
day, it requested and was granted a general injunction and the
preservation of disposition of the Company's assets.  The Korean
Court's decision to commence the rehabilitation was made on
Sept. 1, 2016.  Tai-Soo Suk was appointed as the Debtor's
custodian.

The Chapter 15 case is pending in the U.S. Bankruptcy Court for
the District of New Jersey (Bankr. D.N.J. Case No. 16-27041)
before Judge John K. Sherwood.

Cole Schotz P.C. serves as counsel to Tai-Soo Suk, the Chapter 15
petitioner and the duly appointed foreign representative of
Hanjin Shipping.


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G R E E C E
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ELLAKTOR SA: S&P Affirms 'B-/B' CCRs, Outlook Stable
----------------------------------------------------
S&P Global Ratings said that it affirmed its long- and short-term
corporate credit ratings on Greek concessions and construction
group Ellaktor S.A. at 'B-/B'.  The outlook is stable.

The rating affirmation reflects improvement in Ellaktor's
operating performance, with solid traffic growth at its mature
toll road concessions and growing construction revenues now that
construction at the concession projects in Greece has restarted.
Positive developments also include the state's settlement of its
overdue financial contributions to various concessions under
construction and the approval of a restructuring plan for Moreas,
one of Ellaktor's five concessions.

In addition, the capital controls imposed since June 29, 2015,
have been relaxed over the past year.  Payments of invoices
domestically via bank transfer or checks have been normalized,
the limits for cash withdrawals have been increased, and there is
more flexibility with regards to international payments, although
these are still subject to appropriate documentation.  There is
also more flexibility with regards to re-exporting money brought
in to the Greek system.

Nevertheless, the ratings on Ellaktor remain constrained by the
still very high country risk and adverse economic conditions in
Greece.  The profitability of construction projects in Greece has
become less predictable because of the extended period of
macroeconomic uncertainty.  Ellaktor generates around 80%-90% of
its earnings in Greece and relies on government and bank funding
from the country.  In addition, the construction backlog is still
declining from its 2014 peak, and the current lack of new
projects tendering in Greece and internationally is a concern.

The group reported total debt of about EUR1.45 billion as of
June 30, 2016, (down from about EUR1.49 billion on Dec. 31,
2015). S&P considers this a high level of indebtedness to
support.  S&P expects S&P Global Ratings-adjusted debt to EBITDA
to start to improve in 2016 to 5x-6x, from a peak of 6.1x in
2015, and remain at this level on a weighted-average basis for
the five- year period through 2017.

S&P still assess Ellaktor's liquidity as less than adequate.

Capital controls have been loosened and S&P no longer excludes
cash from Greek banks (except for cash held under concessions,
which S&P do exclude).  In addition, working capital needs have
decreased with the resumption of payments from the government,
and capital expenditure requirements have decreased with the
completion of the construction of Moreas and other projects.  As
a result, the ratio of Ellaktor's sources over uses of liquidity
is now above 1.2x, which is the quantitative threshold for an
adequate liquidity assessment.

However, S&P considers that Ellaktor does not meet other
supportive characteristics such as the likely ability to absorb
high-impact, low-probability events.  In addition, Ellaktor lacks
a track record in international capital markets and banking
relationships are still limited mainly to weak Greek financial
institutions.

The stable outlook on Ellaktor reflects that on Greece.  The
outlook also reflects S&P's expectation that the implementation
of the third European Stability Mechanism program will contribute
to the gradual normalization of the Greek economy and improve the
group's prospects in 2017.  S&P continues to anticipate a gradual
lifting of capital controls.

In S&P's opinion, unless it raises its sovereign rating on
Greece, S&P would only raise its rating on Ellaktor if S&P
revised upward its stand-alone credit profile and it passed S&P's
simulated sovereign stress scenario.  Passing the test would
allow the group to be rated up to two notches above the rating on
the sovereign. S&P considers Ellaktor to have high country risk
sensitivity as a predominantly transportation infrastructure
group.

S&P could raise the ratings if it saw a rapid improvement in the
group's financial and operating performance.  This could be based
on improving traffic volumes in the concession business and
normalization of construction activities, with a healthy
replenishment of the contract backlog and stabilization of
operating margins.

S&P may lower the rating on Ellaktor if S&P takes a negative
rating action on Greece.  S&P could also take a negative rating
action on Ellaktor if the expected gradual normalization of
macroeconomic conditions does not materialize, leading to further
deterioration in the company's credit metrics, or if S&P believes
that Ellaktor becomes vulnerable or dependent upon favorable
business, financial, and economic conditions to meet its
financial commitments.


=============
I C E L A N D
=============


HOUSING FINANCING: S&P Affirms 'BB/B' Counterparty Credit Ratings
-----------------------------------------------------------------
S&P Global Ratings said that it has raised its long- and short-
term counterparty credit ratings on Iceland-based Arion Bank,
Islandsbanki hf, and Landsbankinn hf. to 'BBB/A-2' from
'BBB-/A-3'.  The outlooks are positive.

At the same time, S&P revised its outlook on Housing Financing
Fund Ibudalanasjodur (HFF) to positive from stable and affirmed
its 'BB/B' long- and short-term counterparty credit ratings.

S&P will publish individual research updates on the four banks to
provide more detail on the rationale behind each rating action.

The rating actions follow S&P's review of the Icelandic banking
sector and reflect improved operating conditions for banks as
Iceland makes continued progress in liberalizing capital
controls. The conclusion of composition agreements between the
government and the estates of the three banks, signed in late
2015, has strengthened the government's finances and removed
significant uncertainty with respect to the banks' balance sheets
and liquidity.

In addition, the Central Bank of Iceland (CBI) held Icelandic
krona auctions earlier this year, and although the outcome is not
yet final, there is improved clarity on how the offshore liquid
krona overhang could affect the banks' liquidity positions.
Furthermore, pension funds and private investors are now able to
make limited investments abroad and the CBI has demonstrated its
ability to act proactively by imposing a tool to discourage
short-term investment due to the carry trade.  In addition, S&P
considers that Icelandic banks' access to external funding has
improved markedly, allowing the banks to refinance legacy debt
from the central banks and the estates at lower interest rates.

Although private-sector debt continues to decrease, the Icelandic
economy is expanding, with real GDP growth above 3%.  S&P expects
the economy will continue posting strong growth rates over the
next two years, partly due to the continued strong performance of
the tourism sector and increasing private consumption, supported
by income growth.  In S&P's view, the Icelandic economy has
entered an expansionary phase, since there is an underlying
recovery of credit demand, even as many borrowers continue to
reduce legacy debt levels.  Iceland's debt capacity is supported
by generally high domestic wealth, which is increasing given the
economic environment and strong performance of the domestic
markets.  At the same time, private-sector credit has decreased
in relation to GDP, aided by government-imposed debt-relief
measures. Although decreasing, credit remains fairly high by
global standards at 143% of GDP in 2015.  S&P expects to see
further improvements, especially on household leverage.

"At the same time, we believe -- partly owing to its small size
and industry concentrations -- that the Icelandic economy remains
structurally volatile, as demonstrated by boom-bust cycles in the
past, as well as recent rapid increases in wages and real estate
prices.  Real house prices have risen by more than 10% annually
over the past two years, revealing pent-up demand for housing,
strong population and wage growth, and stagnation of supply after
the crisis.  We expect growth will slow down somewhat as
construction catches up with demand.  Should house prices
continue to rise at the same pace, combined with accelerated debt
growth, this could heighten risks for the banking system.  In
addition, we believe that recently agreed significant public- and
private-sector wage increases could constrain the competitiveness
of the Icelandic economy and result in a faster-than-anticipated
decline in current account surpluses.  The sovereign's monetary
policy flexibility is restricted by the economy's high dependence
on imports and the strong pass-through effect from exchange rate
volatility.  As such, there is an inherent risk of peaks and
valleys in the Icelandic economy, which places great demands on
the banks' risk control," S&P said.

S&P notes that the banks have not materially increased the
overall share of foreign wholesale funding and are increasingly
tapping the domestic covered bond market to finance growth in
residential mortgages.  The oversubscription of two EUR500
million benchmark Eurobonds issued in consecutive weeks in
September 2016 by Landsbankinn and Islandsbanki is a testament to
the banking system's improved access to foreign debt capital
markets and stronger foreign demand.

S&P expects banks' future returns will be based on what S&P
believes are sound commercial practices.  Substantial one-time
items have inflated Icelandic banks' profits over the past few
years, but S&P expects the future impact will be contained.  The
Icelandic banking system benefits from higher interest rates than
in most European economies, and S&P sees improvements in
regulation and supervision.  However, S&P also sees some
distortions in the market, given the high share of government
ownership in the banking sector and competition by nonbanks,
mainly the pension funds.

             ECONOMIC AND INDUSTRY RISK TRENDS IN ICELAND

The trend for economic risk in Iceland remains positive, in S&P'
opinion.  This reflects S&P's view of decreasing risks related to
domestic credit as Icelandic households deleverage, such that S&P
expects debt levels will be in line with that of other wealthy
European economies over the next two years.  In addition, S&P
foresees positive effects from the gradual liberalization of
capital controls and a likely improvement in economic resilience
and the operating environment for Icelandic banks.  Furthermore,
Iceland's external position has strengthened notably in recent
years, and S&P anticipates that this will continue, particularly
if the government's fiscal position remains prudent and the CBI's
reserves show favorable dynamics on the back of significant
foreign exchange inflows from the rapidly expanding tourism
sector.

"We view the trend for industry risk as positive, based on
material improvements in banking regulation and supervision.
There is a marked difference in the banking sector and associated
restrictions compared with 2007, and we believe the recent
restructuring of the legacy banks has been well managed.  Despite
its short track record, the forward-looking restrictions on
short-term foreign investors, to reduce the appeal of the carry
trade, indicate more proactive regulation and supervision, in our
view. In addition, the regulators have increased capital,
funding, and liquidity requirements that restrict mismatches in
the banking sector's aggregate balance sheet and foreign currency
positions. We expect the authorities will continue to closely
monitor the banking system, which could lead us to take a more
positive view on the risk related to the institutional framework.
We note that, although regulatory limits are in place, banks'
improved access to foreign funding markets could increase the
system's reliance on external debt and offset some of the
positive impact from tighter regulation," S&P said.

                       IMPACT ON BANK RATINGS

The reduction of economic and industry risk for banks in Iceland
has led S&P to revise upward its anchor for rating Icelandic
banks to 'bbb-' from 'bb+'.  This change has also had a positive
impact on S&P's assessment of the banks' capital and earnings.
However, due to the uncertainties regarding the banks' ownership,
S&P has reservations about the sustainability of the high capital
ratios. The commercial banks are all owned by the government to
different extents, but S&P expects they will be sold or publicly
listed over the next few years.

                              OUTLOOKS

The positive outlooks on all four banks stem mainly from the
positive economic and industry risk trends S&P sees in Iceland.

                            ARION BANK

The positive outlook on Arion Bank reflects S&P's expectations of
extraordinary dividends and capital optimization as the bank
prepares for an eventual sale or IPO over the next two years.

S&P could raise the rating if it sees strong continued economic
development in Iceland or if future capital levels exceed S&P's
current expectations.  S&P would not expect a two-notch upgrade
over the next two years, given the relatively concentrated and
volatile nature of Iceland's economy.

S&P could revise the outlook to stable if it saw signs of a
weakening of the strong economic development in Iceland or an
increased risk of economic imbalances in the economy.  An outlook
revision to stable could also follow a deterioration in Arion
Bank's asset quality or negative revaluation of its material
equity holdings.

                          ISLANDSBANKI

The positive outlook on Islandsbanki reflects S&P's expectation
that the bank's risk-adjusted capital (RAC) ratio will remain
sustainably above 15%, even while the bank prepares for an
eventual sale or IPO over the next two years.

However, S&P notes that this scenario is only a base case and
uncertainty around the sales process, ownership, and
capitalization remains.

S&P could upgrade the bank if it sees strong continued economic
development in Iceland, if future capital levels exceed S&P's
current expectations, or if S&P become more certain about future
capitalization, allowing S&P to remove the negative adjustment
notch.  Despite continued positive economic and industry trends
for the Icelandic banking sector, S&P considers unlikely a two-
notch upgrade over the next two-year rating horizon, given the
relatively concentrated and volatile nature of the Icelandic
economy.

S&P could revise the outlook to stable if it saw signs that
Iceland's strong economic development was weakening or an
increased risk of economic imbalances in the economy.  S&P could
also revise the outlook to stable if capital levels fell below
its expectations, due to a larger-than-anticipated reduction in
equity capital.

                           LANDSBANKINN

The positive outlook on Landsbankinn reflects S&P's view of
continued improvement in the operating environment for Icelandic
banks.  It also mirrors S&P's expectations that the RAC ratio
will remain above 15% over the next two years, despite
extraordinary dividend payments and share buy-back programs.
However, S&P notes that this scenario is only the base case and
uncertainty around Landsbankinn's optimization of capitalization
remains.

S&P could take a positive rating action if it sees further
strengthening of operating conditions for banks in Iceland.  S&P
could also raise its rating on Landsbankinn if S&P become more
certain about future capitalization, allowing S&P to remove the
negative adjustment notch.  Despite continued positive trends for
the Icelandic banking sector, S&P would not expect a two-notch
upgrade over the next two years, given the relatively
concentrated and volatile nature of the Icelandic economy.

S&P could revise the outlook to stable if it saw signs of
weakening of the strong economic development in Iceland or an
increased risk of economic imbalances in the economy.  S&P could
also revise the outlook to stable if Landsbankinn's capital
levels declined more than it expected.

               HOUSING FINANCING FUND IBUDALANASJODUR

The positive outlook indicates that S&P could raise its ratings
on HFF within one year if the economic conditions in Iceland
improve further, reducing the risks inherent in unwinding HFF's
mortgage portfolio.  HFF has a strict public policy role and is
unlikely to grow with the market.  However, the entity may
benefit from strong economic development based on decreased loan
losses and an improved capital position, which could follow
faster-than-anticipated earnings generation or the accelerated
decrease in risk-weighted assets.

S&P could revise the outlook to stable if it saw signs that
Iceland's strong economic development was weakening.  Moreover,
S&P could lower the ratings if it concluded that the effects of a
potential HFF default for the government and the capital markets
had reduced, which would reduce the incentive for the government
to provide timely extraordinary support to the institution.

As per S&P's criteria for government-related entities, the
ratings on HFF would not be affected by a positive rating action
on the sovereign.

BICRA SCORE SNAPSHOT*
Iceland                          To                   From

BICRA Group                      5                    6

Economic risk                   5                    6
  Economic resilience            High risk            High risk
  Economic imbalances            Intermediate risk
Intermediate risk
  Credit risk in the economy     Intermediate risk    High risk

Industry risk                   5                    6
  Institutional framework        High risk            High risk
  Competitive dynamics           Intermediate risk
Intermediate risk
  Systemwide funding             Intermediate risk    High risk

Trends
  Economic risk trend            Positive             Positive
  Industry risk trend            Positive             Stable

*Banking Industry Country Risk Assessment (BICRA) economic risk
and industry risk scores are on a scale from 1 (lowest risk) to
10 (highest risk).

RATINGS LIST

Upgraded; Ratings Affirmed
                               To                   From
Arion Bank
  Counterparty Credit Rating   BBB/Pos./A-2     BBB-/Positive/A-3

Islandsbanki hf
  Counterparty Credit Rating   BBB/Pos./A-2     BBB-/Positive/A-3

Landsbankinn hf.
  Counterparty Credit Rating   BBB/Pos./A-2     BBB-/Positive/A-3

Outlook Action; Ratings Affirmed
                               To                   From
Housing Financing Fund Ibudalanasjodur
  Counterparty Credit Rating   BB/Pos./B        BB/Stable/B


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


SETANTA SPORTS: High Court Reserves Judgment on MIBI Appeal
-----------------------------------------------------------
Mary Carolan at The Irish Times reports that the Supreme Court
will give judgment at a later date on the Motor Insurers' Bureau
of Ireland's (MIBI) appeal against decisions it is potentially
liable for claims brought against collapsed insurer Setanta.

The appeal concluded on Oct. 25 before a seven-judge court
presided over by the Chief Justice, Ms. Justice Susan Denham, who
said the court was reserving judgment, The Irish Times relates.

The court did not specify a date for judgment but it is expected
to take some weeks, The Irish Times notes.

A priority hearing of the appeal was granted by the Supreme Court
due to the implications of the Court of Appeal's decision earlier
this year rejecting the MIBI's arguments it should not be held
liable, The Irish Times recounts.  That ruling affected all
insurance companies underwriting motor insurance in Ireland, The
Irish Times states.

The liquidator of Maltese-registered Setanta, which sold
insurance policies exclusively in Ireland before it collapsed in
2014, has determined the cost of claims could run to about
EUR90 million with the number of claimants estimated at 1,750,
The Irish Times discloses.

The MIBI has argued that, as a result of the appeal court
decision, it has been "left captive" with its members obliged to
give guarantees even concerning insurers whom they believe will
not last, The Irish Times relays.

It argues the State-backed Insurance Compensation Fund should
pick up the Setanta bill, as was done in the cases of PMPA and
Quinn Insurance, The Irish Times notes.

In opposing the appeal, the Law Society argued that agreements
between the MIBI and Government concerning claims related to
uninsured drivers envisaged the MIBI would pay out if a member
became insolvent, The Irish Times relates.  The MIBI is operated
under the terms of a 2009 agreement between the Government and
companies underwriting motor insurance in Ireland to deal with
claims related to uninsured drivers, The Irish Times discloses.

The core issue in the appeal is the interpretation of that
agreement, The Irish Times states.

Setanta Sports -- http://www.setanta.com/-- is an international
sports broadcaster with operations in Great Britain, Ireland,
Luxembourg, USA, Canada and Australia.  It owns and operates
premium sports TV channels that are made available on a
subscription basis to residential and commercial customers
through satellite, cable, digital terrestrial, broadband and
mobile distribution.


=========
I T A L Y
=========


ATLANTES MORTGAGES NO.2: Fitch Affirms 'BB' Rating on Cl. C Notes
-----------------------------------------------------------------
Fitch Ratings has affirmed the ratings of Atlantes Mortgages No.
1 and No. 2 and revised the Outlook of Atlantes Mortgages No. 2,
as follows:

   Atlantes Mortgage No. 1 Plc

   -- Class A (ISIN XS0161394324): affirmed at 'A+sf'; Outlook
      Stable

   -- Class B (ISIN XS0161394910): affirmed at 'A+sf'; Outlook
      Stable

   -- Class C (ISIN XS0161395305): affirmed at 'A+sf'; Outlook
      Stable

   -- Class D (ISIN XS0161395560): affirmed at 'Asf'; Outlook
      Stable

   Atlantes Mortgage No. 2 Plc

   -- Class A (ISIN XS0348690651): affirmed at 'Asf'; Outlook
      Stable

   -- Class B (ISIN XS0348690735): affirmed at 'BBBsf'; Outlook
      revised to Negative from Stable

   -- Class C (ISIN XS0348691972): affirmed at 'BBsf'; Outlook
      revised to Negative from Stable

Both transactions comprise residential mortgages originated and
serviced by Banco Internacional do Funchal, S.A. (Banif), which
was acquired by Banco Santander Totta, S.A. (Santander Totta,
BBB/Stable) in December 2015.

KEY RATING DRIVERS

Stable Credit Performance

The transaction's performance has remained stable over the past
year with delinquencies over three months excluding defaults
unchanged for Atlantes 1 at 1.9%, but slightly higher for
Atlantes 2 at 2.8% versus 1.7%. Continuous sequential
amortisation on the notes has led to increases in credit
enhancement (CE) for all rated notes; with the effect more
significant for Atlantes 1 whose class A notes' CE increased to
55% from 48%.

Fitch expects this stable credit performance to continue under
its base case scenario, especially given the significant weighted
average seasoning of the securitised portfolios at 16 and eight
years respectively.

Expected Provisioning Needs

Both transactions have a staggered provisioning mechanism,
diverting excess spread to cover for principal losses. The
mechanism depends on the number of monthly instalments in
arrears, as such Atlantes 1 provisions for 50% after 12 months in
arrears and the remaining 50% after 24 months, whereas Atlantes 2
provisions for 25% after 12 months, another 25% after 24 months
and the remaining 50% after 36 months.

To account for the staggered nature of the provisions, Fitch has
estimated the amounts of loans that have defaulted, but for which
full provisions have not yet been made of the outstanding
performing collateral balance. Those amounts have been deducted
from the available current CE in Fitch's analysis, since they are
expected to be payable in the coming quarters.

Limited Cushion on Junior Notes

The Outlook revision of Atlantes No. 2 class B and C notes to
Negative reflects the notes' limited CE to absorb adverse credit
stresses commensurate with their current ratings. The limited
protection means that the transactions' ratings are more
sensitive to the portfolio's performance. CE for the class B and
C notes stood at 10% and 7.2% as of May 2016 after deducting
expected provisioning requirements.

Variation from Criteria

In the absence of lender-specific recovery data, Fitch increased
its quick sale adjustment assumption to 50% from 40%. Moreover,
the agency increased its base foreclosure timing assumption for
Atlantes 2 to six from four years, supported by data from this
particular portfolio. Both adjustments constitute variations from
Fitch rating criteria for Portuguese RMBS transactions.

Because loan-level data on borrower income provided by Santander
Totta was incomplete, Fitch applied a debt-to-income class 4
assumption to all remaining borrowers of the portfolios.

RATING SENSITIVITIES

Deterioration in asset performance may result from economic
factors. A corresponding increase in new defaults and associated
pressure on excess spread and reserve funds, beyond Fitch's
assumptions, could result in negative rating action. Furthermore,
an abrupt shift of the underlying interest rates might jeopardise
the underlying loan affordability of the underlying borrowers.

The ratings are also sensitive to changes in Portugal's Country
Ceiling of A+ and consequently changes to the highest achievable
'A+sf' rating of Portuguese structured finance notes.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed 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 transactions. The findings were reflected in this
analysis by assuming a conservative debt-to-income ratio
throughout the portfolio and using Fitch's estimate of cumulative
defaults. Fitch has not reviewed the results of any third party
assessment of the asset portfolio information or conducted a
review of origination files as part of its ongoing monitoring.

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

Overall and together with the assumptions referred to above,
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:

   -- Loan-by-loan data provided by Santander Totta and sourced
      from European Data Warehouse dated 31 March 2016 for
      Atlantes No. 1 and 31 May 2016 for Atlantes No. 2

   -- Transaction reporting provided by Deutsche Bank AG for
      Atlantes No 1 since close and until July 2016 and by HSBC
      Bank plc for Atlantes No 2 since close and until May 2016

Models

The models below were used in the analysis.

   -- ResiEMEA ResiEMEA.

   -- Excel-based Residential Mortgage Asset Model Excel-based
      Residential Mortgage Asset Model.

   -- EMEA RMBS Surveillance Model EMEA RMBS Surveillance Model.

   -- EMEA Cash Flow Model Counterparty Criteria for Structured
      Finance and Covered Bonds (pub. 01 Sep 2016)

Criteria Addendum: Portugal - Residential Mortgage Assumptions
(pub. 09 Jun 2015)

   -- Criteria for Country Risk in Global Structured Finance and
      Covered Bonds (pub. 26 Sep 2016)

   -- Criteria for Interest Rate Stresses in Structured Finance
      Transactions and Covered Bonds (pub. 17 May 2016)

   -- Criteria for Rating Caps and Limitations in Global
      Structured Finance Transactions (pub. 16 Jun 2016)

   -- EMEA RMBS Rating Criteria (pub. 18 May 2016)

   -- Fitch's Interest Rate Stress Assumptions for Structured
      Finance and Covered Bonds - Excel File (pub. 17 May 2016)

   -- Global Structured Finance Rating Criteria
     (pub. 27 Jun 2016)


CLARIS 2015: Fitch Affirms 'BB+sf' Rating on Class B Debt
---------------------------------------------------------
Fitch Ratings has revised the Outlook on Claris 2015 SME, while
affirming its ratings as follows:

   -- EUR832,744,982 Class A (ISIN IT0005139727) affirmed at
      'AA+sf'; Outlook revised to Negative from Stable

   -- EUR290,000,000 Class B (ISIN IT0005139735) affirmed at
      'BB+sf'; Outlook revised to Positive from Stable

The transaction was a granular cash flow securitisation of a
EUR1,953m static pool of mortgage and non-mortgage loans granted
to small and medium-sized enterprises (SME) located in Italy. The
underlying loans were originated by Veneto Banca S.c.p.a. (VB)
and VB's subsidiary, bancApulia S.p.A. (BA).

KEY RATING DRIVERS

The Outlook revision to Positive on the class B notes reflects
increase in credit enhancement (CE) due to the class A notes'
EUR437m amortisation over the last 12 months. The class B notes
may be upgraded if deleveraging continues at this pace. Claris
2015 SME is capped at 'AA+', the Country Ceiling for the Republic
of Italy (BBB+/Negative/F2). The change in Outlook on the class A
notes reflects a recent similar action on Italy's Outlook.

The transaction features a cumulative default trigger of 12% of
the initial portfolio corresponding to 15% of the outstanding
portfolio. If breached, interest payment on the class B notes
will defer until class A is repaid in full. Currently under
Fitch's base case assumption this trigger is expected to be
breached resulting in the deferral of class B interest for an
excessive period of time. For this reason the rating on the class
B notes is currently capped at below-investment grade.

However, if the transaction continues to deleverage rapidly and,
if defaults remain limited, the likelihood of class B deferring
interest will be reduced, which could result in a rating upgrade.

CE for the class B notes currently stands at 29.2%, compared with
22.1%, due to the current portfolio amount decreasing to 79.3% of
the initial portfolio amount since closing in October 2015.
Delinquencies above 90days stand at 4.61% and defaults (as per
the transaction definition) stand at 0.09%. The transaction
remains granular with the top 10 obligor representing 5.65% of
the portfolio. Exposure to the real estate and building and
materials sectors, the largest sectors, corresponds to 38.1%.

RATING SENSITIVITIES

An increase of the default probabilities or a decrease of assumed
recovery rates by 25% each would have no impact on the ratings.

DUE DILIGENCE USAGE

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 conducted a review of a
small targeted sample of the originator's 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.

   -- Loan-by-loan data as of 30 June 2016 sourced from the
      European Data Warehouse.

   -- Investor report as of 29 July 2016 provided by
      Securitisation Services.


SESTANTE FINANCE: S&P Puts CCC+ Note Ratings on Watch Negative
--------------------------------------------------------------
S&P Global Ratings placed on CreditWatch negative its credit
ratings on Sestante Finance S.r.l.'s series 3 class B, C1, and C2
notes.

S&P's rating on Sestante Finance series 3's class B notes is
weak-linked to S&P's long-term issuer credit rating on Banca
Popolare dell'Emilia Romagna S.C. (BPER), the collection bank
account provider, as the tranche was not able to withstand S&P's
commingling stress in its previous review.

On Sept. 30, 2016, S&P affirmed its 'BB-/B' ratings on BPER and
subsequently withdrew them at the issuer's request.

Taking into account this rating withdrawal and the potential
commingling losses linked to the hypothetical bankruptcy of the
collection bank account provider, S&P has placed on CreditWatch
negative its 'BB- (sf)' rating on the class B notes.  S&P aims to
resolve this CreditWatch placement in due course, and S&P may
lower its rating if the class B notes are still unable to
withstand its commingling stress.

According to the latest October 2016 investor report, the
cumulative default ratio of the transaction now stands at 11.39%
and has shown an average quarterly growth rate of about 0.23%
over the last year.  The class C1 and C2 notes are subject to an
interest deferral trigger set at 12% of cumulative defaults,
which if breached, would cause interest payment defaults on these
classes.

Considering the proximity of the cumulative default ratio to the
interest deferral trigger level, S&P has placed on CreditWatch
negative its 'CCC+ (sf)' ratings on the class C1 and C2 notes.
S&P aims to resolve these CreditWatch placements in due course,
and S&P may lower its ratings depending on its assessment of the
expected collateral performance and timeframe for anticipated
default, in line with S&P's 'CCC' ratings criteria.

Sestante Finance series 3 is an Italian residential mortgage-
backed securities (RMBS) transaction, which closed in December
2005.  It securitizes a pool of residential mortgage loans
originated by Meliorbanca.

RATINGS LIST

Class              Rating
            To                     From

Sestante Finance S.r.l.
EUR899.51 Million Asset-Backed Floating-Rate Notes Series 3

Ratings Placed On CreditWatch Negative

B           BB- (sf)/Watch Neg     BB- (sf)
C1          CCC+ (sf)/Watch Neg    CCC+ (sf)
C2          CCC+ (sf)/Watch Neg    CCC+ (sf)


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


BREEZE FINANCE: Fitch Affirms 'CC' Rating on Class B Bonds
----------------------------------------------------------
Fitch Ratings has affirmed Breeze Finance S.A., (Breeze III)'s
class A bonds at 'B-' with Stable Outlook and class B bonds at
'CC'.

The ratings are driven by volatile and generally weak wind
conditions and the risk of increasing operating costs as turbines
age.

Class A's 'B-' rating signals that capacity for continued debt
service payments is vulnerable to cost increases and volatility
of the wind yield. There were limited draw-downs on the debt
service reserve account (DSRA) to fully meet debt service
payments on the October 2016 payment date, following months of
weaker wind conditions.

The 'CC' rating on the class B bonds reflect continued deferral
of principal and interest payments on the bonds, and that these
are increasingly unlikely to be fully repaid by the final
maturity in 2027.

KEY RATING DRIVERS

Operation Risk: Weaker

The key operational risk is the increase of operating costs as
the turbines age. Average achieved availability across the
portfolio was 96.7% in 2015 and 96.7% in 1H16, broadly in line
with Fitch's expectations. Operating costs were EUR15m in 2015,
or EUR43.4 per MW. The company entered into full-service
contracts, which translate into higher costs but should provide
greater cost certainty. Fitch will monitor the development of
operating costs and calibrate its assumptions accordingly.

Revenue Risk - Volume: Weaker

The project continues to suffer from weak wind conditions, which
are the main driver of the project's tight liquidity position.
Coupled with seasonality in the wind resource and the uniform
principal repayment amount at the April and October payment
dates, this resulted in tight debt service coverage at the
October payment date.

Revenue Risk - Price: Midrange

The German wind farms represent 90% of the portfolio and benefit
from fixed feed-in tariffs for 20 years. The French fixed tariffs
apply only for 15 years and thus the portfolio is exposed to a
degree of price risk in the last four years before debt maturity.
Fitch considers the regulatory support framework in Germany and
France as stable.

Debt Structure: Class A - Midrange; Class B - Weaker

The class B debt service is fully subordinated to the class A
debt service and can be deferred (EUR32.3m currently deferred).
The borrower will not be in a position to pay back this amount,
or possible future additional deferred amounts, unless energy
production consistently and materially exceeds the historical
average.

Class B has fully exhausted its DSRA. Class A debt service is
senior to Class B, including deferrals, and the replenishment of
the DSRA for the class A notes after drawings (EUR1m in 2014, and
EUR0.6m in October 2016) is therefore very unlikely. There is no
formal major maintenance reserve.

Debt Service:

Fitch's base case projections assume that production is aligned
with the historical average wind yield. Projections further
assume declining revenues as wind farms roll off their fixed
feed-in-tariffs from 2020 and that plant availability falls
consecutively in addition to moderate expense growth. Due to the
seasonal production and the uniform debt service requirements,
the semi-annual projected DSCR profile shows significant
differences between the spring and the autumn payment date. The
Fitch base case assumes average and minimum DSCR metrics of 1.09x
and 0.82x for the class A bonds. Projected metrics indicate
default risk is present, but a limited margin of safety remains.
Financial commitments are currently being met; however, capacity
for continued payment is vulnerable to deterioration in the
business and economic environment.

Class B debt service has been only partially met in the past
years and this is likely to continue. Breeze Finance would need
to achieve revenue that is more than 19% higher than the
historical average, in a consistent manner over the remaining
life of the debt, to repay the deferrals, which indicates a
probable default. However Breeze Finance can defer the payments
of its deferrals until maturity in 2027. As a result default is
neither imminent nor strictly inevitable and the credit risk
profile of the class B bonds corresponds to a 'CC' rating.

Fitch's rating case scenario assumes that production will be in
line with the minimum historical wind yield over the operational
period and assumes further stresses to operating expenses. The
Fitch rating case is a downside scenario, which demonstrates the
impact of low production levels expected to occur in a single
year rather than on a continuous basis. The current ratings are
informed by Fitch's base case.

Peer Analysis:

The closest peer is CRC Breeze Finance (Breeze II), which has
similar rating drivers and debt service metrics. Its class A
notes are rated 'B-' and class B notes at 'CC', equivalent to
Breeze III.

Another peer is the US wind project FPL Energy National Wind,
LLC's (Opco, rated 'BB') and FPL Energy National Wind Portfolio,
LLC's (Holdco, rated 'B-') which also suffered from poor
operational performance with weak wind yield and operating costs
exceeding projections. Stronger credit metrics justify the higher
ratings on the debt of the Opco and Holdco.

PERFORMANCE UPDATE

A low wind yield in the summer period combined with marginal
delay in revenue payment (compared to the usual) in September led
to a small drawdown of EUR0.6m on the class A DSRA at the October
2016 payment date. This leaves EUR12.5m available, which
represents about 90% of the required DSRA. On the class B bonds,
the deferrals of principal and interest increased by EUR1.5m and
total principal deferrals now stand at EUR28.0m, or 33% of the
notional.

RATING SENSITIVITIES

Negative: Ratings on the class A and B notes of 'B-' and 'CC',
respectively, highlight the proximity of the bonds to default and
as such are inherently volatile and subject to further downgrade
risk. In particular, the rating could be downgraded as a result
of weak wind conditions, a material decline of the turbines'
availability and/or a lasting increase in O&M costs above current
expectations causing further draw-downs of the DSRA for the class
A notes.

Positive: An upgrade at this point appears highly unlikely,
although wind yield consistently at or above P50 enabling the
project to repay the deferred class B principal may lead to an
upgrade.

SUMMARY OF CREDIT

Breeze III is a Luxembourg SPV that issued three classes of notes
on 19 April 2007 for an aggregate issuance amount of EUR455m to
finance the acquisition and completion of a portfolio of wind
farms located in Germany and France, as well as establishing
various reserve accounts. The notes will be repaid from the cash
flow generated by the sale of the energy produced by the wind
farms, mainly under regulated tariffs.


CRC BREEZE: Fitch Affirms 'CC' Rating on Class B Bonds
------------------------------------------------------
Fitch Ratings has affirmed CRC Breeze Finance S.A., (Breeze II)'s
class A bonds at 'B-' with Negative Outlook and class B bonds at
'CC'.

The ratings primarily reflect volatile and generally weak wind
conditions. The Negative Outlook on the class A bonds is driven
by the expectation of higher, possibly lumpier, operation and
maintenance costs that will further lower the degree of financial
flexibility available at the November 2016 payment dates. Indeed,
Fitch understands that the issuer expects to draw up to EUR3m
from the Class A DSRA in order to meet in full the senior debt
service commitment at the November 2016 payment date.

The 'CC' rating indicates that the class B notes are subject to a
very high level of credit risk and full repayment appears
unlikely. The class B notes reached contractual maturity in May
2016. However, no payment default in accordance with the terms of
the documentation is imminent as Fitch understands that the class
B notes will not cease to exist and cash available after class A
debt service will continue being paid to the class B notes until
the class A notes reach final maturity.

KEY RATING DRIVERS

Operation Risk: Weaker

Breeze II's technical performance has generally been strong, with
annual turbine availability at and even exceeding Fitch's
expectation of 96.5%. The key operational risk remains an
increase in maintenance and repair costs as the turbines age. The
recent management change at the Breeze II issuer level from
Theolia to wpd windmanager AG introduces additional uncertainty.
Fitch will monitor the development of cost budgets and cost
control closely and may adjust its assumptions accordingly.

Revenue Risk - Volume: Weaker

The initial wind study grossly overestimated the project's wind
resource and as a result a new study was prepared in 2010, which
revised down the wind forecast by 17%. However, average actual
wind yield is lower than the revised P50 level. Consequently,
Fitch has reduced its estimates to bring its base case energy
production forecast in line with the average production since
commencement of operation and its rating case estimate to the
level of the weakest year to date. The variability of the wind
yield during the year coupled with the uniform principal
repayment amount results, at the November payment date, in tight
financial coverage on the class A and in the deferral of payments
to class B.

Revenue Risk - Price: Midrange

The wind farms are remunerated through fixed feed-in-tariffs
embedded in German and French energy regulations. Limited
exposure to merchant prices (approximately 10% of the portfolio's
generation capacity increasing to 23% at the last payment date)
during the last three to four years is mainly the result of the
shorter period over which French tariffs are fixed (15 years from
the commencement of operation compared with 20 years for German
projects).

Debt Structure: Class A - Midrange; Class B - Weaker

Class A's debt structure benefits from stronger features: the
notes are senior, fully amortising and fixed rate. However,
payments into the class A DSRA are subordinated to class B debt
service (including deferred amounts), which is a material
weakness as it means that the class A debt reserve will not be
replenished (EUR2.2m was drawn in 2009, EUR10.9m are currently
available) as long as class B deferrals remain outstanding.

Payments on the class B notes are deferrable and fully
subordinated to the payment of interest and repayment of
principal on the class A notes. The amount currently deferred on
the class B notes is EUR23.2m. The borrower will not be in a
position to pay back this amount, or possible additional deferred
amounts, unless energy production consistently and materially
exceeds the historical average.

Debt Service:

Fitch's revised base case projections assume production will be
in line with the average of historical production over the past
eight years. Projections further assume declining revenues as
wind farms roll off their fixed feed-in-tariffs from 2021 and
plant availability reduces marginally, in addition to moderate
expense growth. Due to the seasonal production and the uniform
debt service requirements, the semi-annual DSCR profile shows
significant differences between the spring and the autumn payment
dates. Projected metrics indicate a high risk of coverage falling
below 1.0x for class A at the autumn payment date.

Fitch's rating case scenario assumes production in line with the
minimum of historical production over the past eight years. It
further assumes operating expenses 10% above that of Fitch's base
case. The rating case is a downside scenario, which demonstrates
the impact of low production levels expected to occur in a single
year rather than on a continuous basis. The current ratings are
predominately informed by Fitch's base case.

The average annual DSCR are 1.00x and 0.94x for senior and total
debt, respectively, under the Fitch base case. They are 0.77x and
0.72x, respectively, under the Fitch rating case.

Peer Analysis:

The closest peer is Breeze Finance S.A. (Breeze III), which has
similar rating drivers and marginally stronger debt service
metrics. Its class A notes are rated 'B-' for class A and class B
notes at 'CC', equivalent to Breeze II.

Another peer is the US wind project FPL Energy National Wind,
LLC's (Opco, rated 'BB') and FPL Energy National Wind Portfolio,
LLC's (Holdco, rated 'B-'), which also suffered from poor
operational performance with weak wind yield and operating costs
exceeding projections. Stronger Credit metrics justify the higher
ratings of the Opco and Holdco debt.

PERFORMANCE UPDATE

The wind yield remains in line with historical performance, which
is materially below initial expectations. Operating costs show a
slightly increasing trend, though they are reasonably in line
with the budget at the moment. Availability is still at a high
level, close to the expectation of 96.5%.

A number of turbines of Menil-La-Horgne (10.5MW wind plant in
France) had to be repaired due to a manufacturing defect, while
others are now under an increased maintenance programme. The wind
farm is currently shut and awaiting approval from the French
authorities to restart. The combination of the resulting revenue
loss and repair costs, extraordinary costs on certain wind farms
in Germany and poor wind during the summer period are expected to
result in stressed cash flow availability at the November 2016
payment date.

RATING SENSITIVITIES

Negative: The class A and B notes' ratings at 'B-' and 'CC',
respectively, highlight the proximity of the bonds to default and
as such are inherently volatile and subject to further downgrade
risk. In particular, the ratings could be downgraded as a result
of weak wind conditions, a material decline of the turbines'
availability and/or a lasting increase in O&M costs above current
expectations causing repeated further draw-downs of class A DSRA.

Positive: An upgrade at this point appears highly unlikely,
although wind yield consistently at or above P50 enabling the
project to repay the deferred class B principal may lead to an
upgrade.

SUMMARY OF CREDIT

Breeze 2 is a Luxembourg special purpose vehicle that issued
three classes of notes on 8 May 2006 for an aggregate issuance
amount of EUR470m to finance the acquisition and completion of a
portfolio of wind farms located in Germany and France, as well as
establishing various reserve accounts. The notes are scheduled to
be repaid from the cash flow generated by the sale of the energy
produced by the wind farms, mainly under regulated tariffs.


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


AVG TECHNOLOGIES: S&P Lowers CCR to 'BB-' then Withdraws Rating
---------------------------------------------------------------
S&P Global Ratings lowered its long-term corporate credit rating
on The Netherlands-based security software company AVG
Technologies N.V. to 'BB-' from 'BB'.  S&P subsequently withdrew
the rating at parent Avast Holding B.V.'s request.  At the time
of the withdrawal, the outlook was stable.

At the same time, S&P withdrew its issue rating on AVG's senior
secured loans and revolving credit facility, as these instruments
have been repaid.  There is no more debt outstanding at AVG.

S&P removed all ratings from CreditWatch with negative
implications, where it had placed them on July 12, 2016.

The rating action follows the completion of Avast's acquisition
of AVG on Sept. 30, 2016.  As per S&P's rating approach and its
view of AVG as a core subsidiary of Avast, S&P has aligned its
rating on AVG with that on Avast.

S&P's view of AVG's core status within Avast is based on its
integral position in the parent' operations and strategy.  The
group currently controls more than 95% of AVG's outstanding
ordinary shares, and both entities have operated as a single
company since Oct. 3, 2016.  S&P also acknowledges the full
redemption of AVG's debt and common funding structure at the
group level.

At the time of the withdrawal, the stable outlook on AVG
reflected S&P's outlook on Avast (BB-/Stable/--).


FAB CBO 2003-1: S&P Raises Ratings on 2 Note Classes to CCC+
------------------------------------------------------------
S&P Global Ratings raised its credit ratings on FAB CBO 2003-1
B.V.'s class A-3E and A-3F notes.  At the same time, S&P has
affirmed its ratings on the class A-2F, A-2aE, and A-2bE notes.

The rating actions follow S&P's updated credit and cash flow
analysis of the transaction using data from the trustee note
valuation report dated Aug. 11, 2016, and the application of
S&P's relevant criteria.

Since S&P's Dec. 11, 2015 review of the transaction, the class
A-1E and A-1F notes have fully repaid and the class A-2aE, A-2bE,
and A-2F notes have started to amortize.  In S&P's view, the
repayment of these classes of notes has resulted in increased
available credit enhancement for all rated tranches.

S&P conducted its cash flow analysis to determine the break-even
default rates (BDRs) at each rating level by applying S&P's
updated corporate cash flow collateralized debt obligation (CDO)
criteria and its criteria for CDOs of asset-backed securities
(ABS).  The BDR represents S&P's estimate of the maximum level of
gross defaults, based on its stress assumptions, that a tranche
can withstand and still fully repay the noteholders.

In S&P's cash flow analysis, it used the reported portfolio
balance that it considered to be performing, the principal cash
balance, the current weighted-average spread, and the weighted-
average recovery rates that S&P considered to be appropriate.
S&P incorporated various cash flow stress scenarios using various
default patterns, levels, and timings for each liability rating
category, in conjunction with different interest rate stress
scenarios.

S&P based its credit analysis on its updated assumptions to
determine the scenario default rates (SDRs) at each rating level,
which S&P then compared with the respective BDRs.  The SDR is the
level of defaults that S&P expects the transaction to incur at
the respective rating levels.

"According to our analysis, the portion of performing assets not
rated by S&P Global Ratings is 10.6%.  In this case, we apply our
third-party mapping criteria to map notched ratings from another
ratings agency and to infer our rating input for the purpose of
inclusion in CDO Evaluator.  In performing this mapping, we
generally apply a three-notch downward adjustment for structured
finance assets that are rated by one rating agency and a two-
notch downward adjustment if the asset is rated by two rating
agencies," S&P said.

Taking into account the results of S&P's credit and cash flow
analysis, it considers the available credit enhancement for the
class A-2F, A-2aE, and A-2bE notes to be commensurate with the
currently assigned ratings.  S&P has therefore affirmed its 'BBB+
(sf)' ratings on these classes of notes.

At the same time, the available credit enhancement for the class
A-3E and A-3F notes has increased since S&P's previous review,
and its credit and cash flow results indicate that the BDRs are
able to surpass the SDRs at higher rating levels.  As a result,
S&P has raised to 'CCC+ (sf)' from 'CCC- (sf)' its ratings on the
class A-3E and A-3F notes.

FAB CBO 2003-1 is a CDO transaction backed by pools of structured
finance assets, which closed in July 2003.  The reinvestment
period ended in August 2007.

RATINGS LIST

Class              Rating
            To                From

FAB CBO 2003-1 B.V.
EUR308.8 Million Asset-Backed Floating, Fixed And Zero Coupon
Notes

Ratings Raised

A-3E        CCC+ (sf)         CCC- (sf)
A-3F        CCC+ (sf)         CCC- (sf)

Ratings Affirmed

A-2F        BBB+ (sf)
A-2aE       BBB+ (sf)
A-2bE       BBB+ (sf)


INVESCO MEZZANO: S&P Affirms B+ Rating on Class E Notes
-------------------------------------------------------
S&P Global Ratings raised its credit ratings on Invesco Mezzano
B.V.'s class B, C, and D notes.  At the same time, S&P has
affirmed its ratings on the class A and E notes.

The rating actions follow S&P's review of the transaction's
performance.  S&P performed a credit and cash flow analysis and
assessed the support that each participant provides to the
transaction by applying S&P's current counterparty criteria.  In
S&P's analysis, it used data from the July 2016 trustee report.

S&P subjected the capital structure to a cash flow analysis to
determine the break-even default rate for each rated class of
notes at each rating level.  In S&P's analysis, it used the
reported portfolio balance that it considered to be performing
(EUR137.97 million), also taking account of the cash on account
of EUR8.6 million, the weighted-average spread, and the weighted-
average recovery rates for the performing portfolio.  S&P applied
various cash flow stress scenarios, using its standard default
patterns in conjunction with different interest stress scenarios
for each liability rating category.  S&P considers the exposure
to obligors based in countries rated below 'A-' by applying its
out of model supplemental tests, as described in both S&P's
corporate collateralized debt obligation (CDO) and structured
finance ratings above the sovereign criteria.

S&P's review of the transaction highlights that the class A notes
have paid down by approximately EUR46.5 million since its
previous review.  This has increased the available credit
enhancement for all of the rated classes of notes.

S&P's analysis indicates that the available credit enhancement
for the class B, C, and D notes is now commensurate with higher
ratings than those currently assigned.  Therefore, S&P has raised
its ratings on these classes of notes.  None of the ratings on
these classes of notes are capped by S&P's supplemental tests.

S&P's credit and cash flow analysis indicates that the available
credit enhancement for the class A and E notes is commensurate
with the currently assigned ratings.  Therefore, S&P has affirmed
its ratings on these classes of notes.

Invesco Mezzano is a cash flow collateralized loan obligation
(CLO) transaction that securitizes loans granted to primarily
European speculative-grade corporate firms.  Invesco Asset
Management Ltd. manages the transaction.  The transaction closed
in October 2007 and entered its amortization period in November
2013.

RATINGS LIST

Class                Rating
             To                From

Invesco Mezzano B.V.
EUR350.45 Million Senior And Deferrable Interest Floating-Rate
Notes

Ratings Raised

B            AAA (sf)          AA+ (sf)
C            AA (sf)           A (sf)
D            BBB+ (sf)         BBB- (sf)

Ratings Affirmed

A            AAA (sf)
E            B+ (sf)


===============
P O R T U G A L
===============


HIPOTOTTA 4: Fitch Affirms 'CCCsf' Rating on Class C Debt
---------------------------------------------------------
Fitch Ratings has affirmed 10 tranches of HipoTotta 4, and
Magellan Mortgages No. 1 and 2 Plc. It has also removed the
Rating Watch Positive (RWP) on two tranches of HipoTotta 4 notes
and assigned Stable Outlooks.

Both Magellan deals comprise Portuguese mortgage loans originated
and serviced by Banco Comercial Portugues (BCP; BB-/Stable/B)
while HipoTotta 4 was originated and is serviced by Santander
Totta S.A. (BBB/Stable/F2). A full list of rating actions follows
at the end of this rating action commentary.

KEY RATING DRIVERS

Counterparty Exposure

The affirmation of class A and B notes of Magellan Mortgages No.
1 reflect the transactions' continued exposure to RBS
(BBB+/Stable/F2) as account bank, as remedial actions have not
been implemented following its downgrade. In line with Fitch's
structured finance counterparty criteria, the bank is therefore
no longer deemed eligible to perform the duties of a direct
support counterparty under a stress scenario above the rating of
the bank.

Variations from Criteria

Neither BCP nor Santander Totta has been able to provide loan-by-
loan default and recovery information for the transactions. As a
result, in its analysis Fitch applied the worst case scenario
assumptions based on the experience of other Portuguese lenders.
This involved increasing the quick sale adjustment to 50% from
40% and extending the expected recovery timing to six years from
four years. These recoveries were applied to both expected
defaults and outstanding defaults that have been provisioned for.
This constitutes a variation from our Criteria Addendum: Portugal
- Residential Mortgage Assumptions.

HipoTotta 4 has a proportion of loans with available grace
periods which Fitch views as sign of a weaker borrower profile.
Fitch therefore applied an additional 20% foreclosure frequency
hit to these loans. This constitutes a variation from our
Criteria Addendum: Portugal - Residential Mortgage Assumptions.

Provisioning

HipoTotta 4 and Magellan 2 feature a provisioning mechanism
whereby excess spread is diverted to principal distributions to
cover deemed principal losses. The amount provisioned is
dependent on the number of monthly instalments in arrears.

To account for the staggered nature of provisions, in both cases
Fitch has estimated the amounts of loans that have defaulted, but
for which full provisions have not yet been made at below 0.5% of
the outstanding collateral balance. Defaults that have not yet
been provisioned for have been deducted from the current credit
enhancement (CE) available in Fitch's analysis.

Magellan Mortgages 1 has no provisioning mechanism in place,
unlike the majority of Fitch-rated Portuguese transactions, as a
result Fitch has used the proportion of loans in arrears higher
than 12 months (EUR8.4m as of August 2016) as a proxy for the
number of defaults on this deal and deducted this amount from the
current CE available in Fitch's analysis. The lack of a
provisioning mechanism also explains the higher late-stage
arrears in this deal (7.3% as of August 2016) in comparison with
the Portuguese RMBS index of 1.03%. To date the transaction has
had sufficient excess spread, despite cost of carry caused by the
volume of loans in arrears.

Adequate Credit Enhancement

The current CE levels and strong performance of HipoTotta 4's
class A and B notes, Magellan 1 class C notes and Magellan 2's
notes are sufficient to maintain current ratings, given the
application of worst-case scenario assumptions. This is reflected
in today's affirmation of the notes. As the class A and B of
HipoTotta 4 cannot sustain higher rating level stresses given the
current levels of CE the notes have been taken off RWP and
assigned a Stable Outlook. For HipoTotta 4's class C notes CE is
insufficient to sustain ratings higher than 'CCCsf', and given
Fitch's expectations on recoveries the notes are affirmed with a
recovery estimate of 95%.

No Impact from Commingling Exposure

The notes in HipoTotta 4 and both Magellan deals have
concentration of borrower payments between 33% and 52% as such
Fitch has applied a commingling loss of 50% of the monthly
collections in all cases. Fitch found this stress to have no
material impact on the rating of the notes.

RATING SENSITIVITIES

A change to the rating of RBS (BBB+/Stable/F2) could impact the
ratings on Magellan Mortgages 1 class A and B notes.

Deterioration in asset performance may result from economic
factors. A corresponding increase in new defaults and associated
pressure on excess spread and reserve funds, beyond Fitch's
assumptions, could result in negative rating action. Furthermore,
an abrupt shift of the underlying interest rates might jeopardise
the underlying loan affordability of the underlying borrowers.

The ratings are also sensitive to changes in Portugal's Country
Ceiling 'BB+/Stable' and consequently changes to the highest
achievable 'A+' rating of Portuguese structured finance notes.

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

No third party due diligence was provided or reviewed 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
pools and the transactions. There were no findings that were
material to this 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.

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

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.
Loan-by-loan data provided by:

   Banco Comercial Portugues and sourced from European Data
   Warehouse with the following cut-off dates:

   -- 31 August 2016 for Magellan 1

   -- 30 June 2016 for Magellan 2

   Banco Santander Totta, S.A and sourced from the European Data
   Warehouse with the following cut-off dates:

   -- 15 June 2016 for Hipototta 4

   Transaction reporting provided by:

   Banco Comercial Portugues, S.A for:

   -- Magellan 1 since close and until September 2016

   -- Magellan 2 since close and until July 2016

   -- Deutsche Bank AG

   -- Hipototta 4since close and until June 2016

MODELS

   -- ResiEMEA

   -- EMEA RMBS Surveillance Model

   -- EMEA

   -- Cash Flow Model

The rating actions are as follows

HipoTotta No. 4 Plc

   -- Class A (ISIN XS0237370605): affirmed at 'Asf'; off RWP;
      Outlook Stable

   -- Class B (ISIN XS0237370787): affirmed at 'Asf'; off RWP;
      Outlook Stable

   -- Class C (ISIN XS0237370860: affirmed at 'CCCsf'; Recovery
      Estimate 95%

Magellan Mortgages No. 1 Plc:

   -- Class A (ISIN XS0140415836): affirmed at 'BBB+sf'; Outlook
      Stable

   -- Class B (ISIN XS0140416057): affirmed at 'BBB+sf'; Outlook
      Stable

   -- Class C (ISIN XS0140416214): affirmed at 'BB+sf'; Outlook
      Stable

Magellan Mortgages No. 2 Plc:

   -- Class A (ISIN XS0177944690): affirmed at 'A+sf'; Outlook
      Stable

   -- Class B (ISIN XS0177945077): affirmed at 'A+sf'; Outlook
      Stable

   -- Class C (ISIN XS0177945234): affirmed at 'Asf'; Outlook
      Stable

   -- Class D (ISIN XS0177945408): affirmed at 'BBBsf'; Outlook
      Stable


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


* ROMANIA: Had More Than 100K Corp. Insolvencies in Past 5 Years
----------------------------------------------------------------
The Diplomat, citing a survey of Coface Romania, reports that
Romania would have seen an economic growth of more than 5% in
2011-2015, had the number of insolvencies been in line with that
elsewhere in Central and Eastern European countries instead of
being four times higher.

"In the past five years, Romania had more than 100,000 corporate
insolvencies, with an incidence per 1,000 active companies four
times above the Central and Eastern European average and a three
per cent successful reorganization rate, which is ten times below
the average in EU developed countries. The very high number of
insolvent companies has capped economic growth at an average of
3% compared to 5.25% as it would have been, had Romania's
insolvency rate been in line with the region average," the report
quotes Coface Romania Services Director Iancu Guda as saying.

However, after the coming into force of a new Insolvency Code,
the number of newly opened insolvencies decreased steadily
beginning with 2014 by 285 in 2014 and 50% in 2015, with Coface
estimating a further decline by yet another 25% in 2016, The
Diplomat adds.


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


ALMAZERGIENBANK: Fitch Affirms 'BB-' LT Issuer Default Ratings
--------------------------------------------------------------
Fitch Ratings has revised Almazergienbank's (AEB) Outlook to
Stable from Negative, while affirming the Long-Term Issuer
Default Ratings (IDR) at 'BB-'.

The revision of the Outlook on AEB reflects the revision of that
on the Republic of Sakha (Yakutia) (Sakha; BBB-/Stable), the
bank's controlling shareholder.

KEY RATING DRIVERS

The Long-Term IDRs of AEB are underpinned by potential support
the bank may receive, in case of need, from the regional
authorities of Sakha. Fitch's view on the probability of support
is based on (i) the authorities' majority ownership (78% stake)
and operational control over the bank, (ii) close association
between the bank and regional administration (it is represented
on the bank's board), (iii) the track record of capital and
liquidity support to date (including indirectly, through region-
affiliated entities), and (iv) the bank's limited size relative
to Sakha's budget.

However, Fitch views the probability of support as only moderate,
as reflected in AEB's IDRs being three notches below those of
Sakha. This is because of (i) the limited flexibility of the
local authorities to provide extraordinary support swiftly, (ii)
AEB's only limited importance for the region, and (iii) the
region's intention to attract a strategic investor in the bank,
potentially leading to a dilution of Sakha's majority stake.

However, the ratings currently do not factor in the potential
change of control in the bank since there has been no firm
interest from potential investors, while the disposal process
could be lengthy.

RATING SENSITIVITIES

AEB's ratings could be downgraded if (i) Sakha is downgraded;
(ii) Fitch changes its view on the authority's propensity to
support the bank in anticipation of the planned dilution of the
stake; or (iii) if the bank is sold to a less creditworthy owner.

Upside for AEB's ratings is limited due to Sakha's plan to dilute
its stake in the bank.

The rating actions are as follows:

   -- Long-Term Foreign and Local Currency IDRs affirmed at
      'BB-';
      Outlook revised to Stable from Negative

   -- Short-Term Foreign Currency IDR affirmed at 'B'

   -- National Long-Term Rating affirmed at 'A+(rus)'; Outlook
      Stable

   -- Viability Rating: 'b', unaffected

   -- Support Rating affirmed at '3'


CB FINANCIAL: Put on Provisional Administration
-----------------------------------------------
The Bank of Russia, by its Order No. OD-3645, dated October 25,
2016, revoked the banking license of Saint Petersburg-based
credit institution commercial bank Financial Capital, LLC (LLC CB
Financial Capital) from October 25, 2016, according to the press
service of the Central Bank of Russia.

The Bank of Russia took such an extreme measure -- revocation of
the banking license -- due to the credit institution's failure to
comply with federal banking laws and Bank of Russia regulations,
repeated violation within a year of the requirements of Articles
6, 7 (except for Clause 3 of Article 7) of the Federal Law "On
Countering the Legalisation (Laundering) of Criminally Obtained
Incomes and the Financing of Terrorism", and Bank of Russia
regulations issued in compliance with the said federal law,
inability to meet creditors' claims on monetary obligations,
considering repeated application within a year of measures
envisaged by the Federal Law "On the Central Bank of the Russian
Federation (Bank of Russia)", guided by Article 19, Clauses 6, 61
of Part 1 and Clause 4 of Part 2 of Article 20 of the Federal Law
"On Banks and Banking Activities" and Part 11 of Article 74 of
the Federal Law "On the Central Bank of the Russian Federation
(Bank of Russia)".

LLC CB Financial Capital implemented high-risk lending policy
connected with placement of funds into low-quality assets.
Meeting the supervisor's requirements on creating loan-loss
provisions resulted in the grounds for the credit institution to
take insolvency (bankruptcy) prevention measures.  Due to
unsatisfactory asset quality to generate sufficient cash flow,
the bank failed to meet obligations to creditors on a timely
basis.  LLC CB Financial Capital did not comply with legislation
and Bank of Russia regulations on legalization (laundering) of
criminally obtained incomes and financing of terrorism with
respect to timely submission of true and full information to the
authorized body, including information on operations subject to
mandatory control.  The management and owners of LLC CB Financial
Capital did not take effective and sufficient measures to
normalize its activities.  Under these circumstances, the Bank of
Russia performed its duty on the revocation of the banking
license of the credit institution in accordance with Article 20
of the Federal Law "On Banks and Banking Activities".

The Bank of Russia, by its Order No. OD-3646, dated October 25,
2016, appointed a provisional administration to LLC CB Financial
Capital for the period until the appointment of a receiver
pursuant to the Federal Law "On Insolvency (Bankruptcy)" or a
liquidator under Article 23.1 of the Federal Law "On Banks and
Banking Activities".  In accordance with federal laws, the powers
of the credit institution's executive bodies are suspended.

LLC CB Financial Capital is a member of the deposit insurance
system.  The revocation of banking license is an insured event
envisaged by Federal Law No. 177-FZ "On Insurance of Household
Deposits with Russian Banks' regarding the bank's obligations on
household deposits determined in accordance with the legislation.
The said federal law stipulates the reimbursement of insurance
premium to the bank's depositors, including individual
entrepreneurs, in 100% amount of the balance of funds, but not
more than 1.4 million rubles in aggregate per depositor.

According to the financial statements, as of October 1, 2016, LLC
CB Financial Capital ranked 512th by assets in the banking system
of the Russian Federation.


PERESVET JSCB: Bank of Russia Appoints Provisional Administration
-----------------------------------------------------------------
The Bank of Russia, by its Order No. OD-3628, dated October 21,
2016, appointed a provisional administration to manage the
Joint-stock Commercial Bank for Charity and Spiritual Development
of Fatherland PERESVET, a joint-stock company, in view of the
bank's failure to satisfy creditors' monetary claims within the
timeframe exceeding seven days from the deadline, for six months
from October 21, 2016, according to the press service of the
Central Bank of Russia.

The powers of JSCB PERESVET executive bodies have been suspended
for the period of activity of the provisional administration.

One the provisional administration's priority tasks is to carry
out an inspection of the credit institution's financial position.

Simultaneously, in compliance with Article 189.38 of the Federal
Law "On Insolvency (Bankruptcy)" the Bank of Russia has imposed a
moratorium on satisfying claims of JSCB PERESVET creditors by its
Order No. OD-3629, dated October 21, 2016.

In accordance with the Federal Law "On Insurance of Household
Deposits with Russian Banks", the imposition of a moratorium on
satisfying bank creditors' claims is an insured event.  The
payment of indemnities to JSCB PERESVET depositors, including
individual entrepreneurs, will start no later than 14 days after
the imposition of the moratorium.

The procedure for paying indemnities will be determined by the
state corporation Deposit Insurance Agency.

The Bank of Russia holds consultations with shareholders and
major creditors of JSCB PERESVET to determine further prospects
of the credit institution's activity.


PERESVET CJSC: Fitch Cuts Long Term Issuer Default Ratings to 'D'
-----------------------------------------------------------------
Fitch Ratings has downgraded Russia-based CJSC Peresvet Bank's
Long-Term Issuer Default Ratings (IDRs) to 'D' from 'B+' and
removed them from Rating Watch Negative (RWN).

The senior unsecured debt ratings have been downgraded to 'C',
which is the lowest level on Fitch's debt rating scale.

KEY RATING DRIVERS

The downgrade reflects the announcement made by the Central Bank
of Russia (CBR) on Friday, October 21, 2016, that it has
introduced a temporary administration regime in the bank and
imposed a moratorium on the servicing of Peresvet's obligations
for six months. In accordance with Fitch's criteria, such a
moratorium constitutes a default.

"We had placed Peresvet on RWN after increased liquidity pressure
forced the bank to impose restrictions on retail deposit
withdrawals."  Fitch said.

RATING SENSITIVITIES

Fitch will withdraw the ratings in case of the bank's
bankruptcy/liquidation. Fitch may upgrade the ratings if the bank
receives sufficient support to again become a viable entity.

The rating actions are as follows:

   Peresvet Bank

   -- Long-Term Foreign and Local Currency IDRs: downgraded to
      'D' from 'B+', off RWN

   -- Short-Term Foreign Currency downgraded to 'D' from 'B', off
      RWN

   -- National Long-Term Rating: downgraded to 'D(rus)' from 'A-
      (rus)', off RWN

   -- Viability Rating: downgraded to 'f' from 'b+', off RWN

   -- Support Rating: affirmed at '5'

   -- Support Rating Floor: affirmed at 'No Floor'

   -- Senior unsecured debt: downgraded to 'C'/'C(rus)' from
      'B+'/'A-(rus)'; Recovery Rating 'RR4', off RWN


VEK JSC: Liabilities Exceed Assets, Assessment Shows
----------------------------------------------------
The provisional administration of JSC JSCB VEK appointed by
virtue of Bank of Russia Order No. OD-1478, dated May 12, 2016,
following revocation of its banking license established that,
prior to the license revocation and emergence of problems with
solvency, the former management and owners of JSC JSCB VEK had
executed several transactions to assign assets to entities
affiliated with the bank, according to the press service of the
Central Bank of Russia.  Those transactions had indications of
moving out assets and preferential satisfaction of claims of
several creditors to the total amount exceeding RUB1.3 billion.

Besides, the provisional administration established that the bank
had made a wrongful estimate of credit risk exposure to the total
amount exceeding RUB4 billion due to improper debt servicing by
borrowers, among other things, and also certain indications
showing the borrowers' potential inability to meet their credit
obligations.

According to estimates by the provisional administration, the
asset value of JSC JSCB VEK does not exceed RUB2.1 billion,
whereas its liabilities to creditors amount to RUB4.3 billion.

On August 22, 2016, the Arbitration Court of the city of Moscow
took a decision to recognize JSC JSCB VEK insolvent (bankrupt)
and initiate bankruptcy proceedings with the state corporation
Deposit Insurance Agency appointed as a receiver.

The Bank of Russia has submitted the information on the financial
transactions bearing the evidence of criminal offences conducted
by the former management and owners of JSC JSCB VEK to the
Prosecutor General's Office of the Russian Federation, the
Russian Ministry of Internal Affairs and the Investigative
Committee of the Russian Federation for consideration and
procedural decision making.


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


ABANCA CORPORACION: S&P Affirms 'B+/B' Counterparty Ratings
-----------------------------------------------------------
S&P Global Ratings revised its outlook on Spain-based Abanca
Corporacion Bancaria S.A. to positive from stable.  At the same
time, S&P affirmed its 'B+/B' long and short-term counterparty
credit ratings on the bank.

The rating action reflects S&P's belief that Abanca is making
progress in implementing its business plan.  It is resuming
volume growth in its home market and shifting to a more-
profitable asset mix.  Over time, this could enable Abanca to
reverse the operating losses it still reports.  In addition,
economic risks in Spain could ease, which would help strengthen
Abanca's capital and its ability to absorb unexpected losses.

Abanca's 2015-2017 strategic plan is bearing fruit, in S&P's
view. With the bank's restructuring now completed, Abanca is
delivering on the strategy it put in place after the change in
its ownership and top management.  In particular, Abanca is
regaining market share in its home region of Galicia, where it
holds around 30% of loans and 40% of deposits, although this is
still below precrisis levels.  It is also growing in targeted
small and midsize enterprise (SME) and consumer segments,
allowing to gradually rebalance its loan book to higher-yielding
segments from mortgages.

Higher volumes could help support a slight improvement of
Abanca's earnings while interest rates remain low, in turn
potentially supporting a turnaround of its underlying
profitability, which S&P considers is still a key challenge for
management.  Abanca lacks enough business volumes at present to
generate sufficient recurring earnings to cover its operating
expenses.  Despite likely improvements, efficiency will remain a
key weakness in absolute terms and in comparison with peers.  S&P
forecasts that operating expenses will still represent about 90%
of operating revenues by end-2017.

S&P acknowledges that the bank is less subject to market pressure
to strengthen its returns than some of its peers, because it is
unlisted and, ultimately, a single shareholder holds majority
control over it.  That said, S&P considers that achieving sound
profitability is necessary to ensure the viability of a bank's
business model.

Although S&P expects recurrent profitability to remain too
limited to contribute to strengthening capital, it considers that
Abanca could record further one-off gains that would allow it to
accommodate asset growth and maintain capital ratios at similar
levels to those it achieved at the end of 2015 (6.6%).

If economic risks in Spain were to ease, however, the bank's
risk-adjusted capital (RAC) could improve to levels slightly
above 7%. S&P's view of Abanca's quality of capital is likely to
remain constrained by its larger than peers stock of time
difference deferred tax assets (equivalent to 102% of its total
adjusted capital at the end of June 2016).

S&P's ratings on Abanca also reflect S&P's expectation that the
bank will continue to reduce the size of its portfolio of
problematic assets.  S&P estimates that problematic assets will
be slightly less than 10% of total assets by end-2017, down from
12% at end-June 2016.  Abanca is keeping its coverage levels
high--they stood at 60% at end-June 2016.  Therefore, S&P
anticipates that it will not need to make significant
provisioning efforts over S&P's outlook horizon, which will
enable it to keep its cost of credit risk relatively low.

Although S&P acknowledges that the risk management function has
been revamped to introduce a more-conservative risk management
culture, S&P considers that fully consolidating such changes into
an organization is a lengthy process.  In S&P's view, future
years of growth will test the conservativeness of Abanca's
underwriting standards and pricing policies for newly granted
loans.  This will be particularly relevant given that it has
targeted growth in the consumer and SME segments -- which are
riskier by nature -- and that, in the current low-interest
environment, banks are in danger of mispricing the risks they
undertake.

Abanca benefits from its primarily retail funding profile -- its
core customer deposits represented 72% of its funding base at
end-June 2016.  It has also reduced its short-term wholesale
financing further, while maintaining a comfortable buffer of
liquid assets. Despite the current balanced situation, in the
future Abanca will have to prove it is still able to fund growth
with long-term resources.

The long-term rating on Abanca does not incorporate any notches
of uplift for potential extraordinary government support, nor for
additional loss-absorbing capacity (ALAC).  S&P considers that
the bank's ALAC buffer -- equivalent to around 1.6% of S&P Global
Ratings' risk-weighted assets at end-2015 -- is unlikely to
exceed our required 5% threshold for one notch of uplift over a
projected two-year period.

The positive outlook reflects the possibility that S&P could
raise its long-term rating on Abanca in the next 12-18 months if
it continues to deliver on its strategic plan, strengthening its
business and earnings generation capacity while controlling its
risk appetite.

S&P could also raise the ratings if the positive momentum of the
Spanish economy helps Abanca to further strengthen its capital
and reach a RAC ratio sustainably above 7%.

S&P could revise the outlook to stable if economic risks in Spain
do not ease and Abanca proves unable to strengthen its business
and revenue generation further.  This could occur if S&P was to
conclude that Abanca's operating profitability is unlikely to
gradually approach the Spanish banking average.  S&P could also
revise the outlook to stable if it anticipated that Abanca would
have difficulties in financing its increasing loan portfolio with
stable funding sources.


ABEINSA HOLDING: Nationwide Wants Ch. 11 Examiner Appointed
-----------------------------------------------------------
Nationwide Mutual Insurance Company, a creditor of Abeinsa
Holding, Inc., and its debtor affiliates, asks the U.S.
Bankruptcy Court for the District of Delaware to enter an order
appointing a Chapter 11 Examiner, or otherwise, appoint a
Chapter 11 Trustee for the Debtor.

According to Nationwide, the Debtors' bankruptcy cases involve
the Debtors' proposed plan that substantively consolidates
certain debtor entities, seeks to impose terms from a Spanish
Master Restructuring Agreement (MRA) involving classification of
claims and treatment of creditors in a manner not recognized or
generally allowed in Chapter 11 cases, and involves entities that
have engaged in numerous inter-company transfers and entities
that have transferred substantial assets to non-debtor companies,
which assets are being pledged to creditors and lenders of the
Spanish parent company.

A number of creditors in the Chapter 11 cases, as well as the
Official Committee of Unsecured Creditors filed objections to the
MRA Motion of the Debtor, arguing, among other things, that the
MRA Motion seeks approval of a sub rosa plan and bargains away
the Debtors' fiduciary duties.

Nationwide Mutual asserts that the appointment of a Chapter 11
Examiner may alleviate the uncertainty faced by the Creditors
arising out from the Debtors efforts to impose the restructuring
terms of the MRA into the Chapter 11 plans.  Moreover, the
potential conflicts for the Committee arising out of
classification of claims, substantive consolidation, inter-
company transfers, creditors having recourse against different
entities, and creditors who may already be parties to the MRA can
also be mitigated through the appointment of an examiner,
Nationwide Mutual further asserts.

Nationwide Mutual is represented by:

         Thomas J. Francella, Jr., Esq.
         WHITEFORD TAYLOR & PRESTON LLC
         The Renaissance Centre
         405 North King Street, Suite 500
         Wilmington, DE 19801-3700
         Tel.: (302) 357-3252
         Fax: (302) 357-3272
         Email: tfrancella@wtplaw.com

            -- and --

         T. Scott Leo, Esquire
         LAW OFFICES OF T. SCOTT LEO, P.C.
         1 North LaSalle Street, Suite 3600
         Chicago, Illinois 60602
         Tel.: (312) 857-0910
         Email: sleo@leolawpc.com

                      About Abengoa S.A.

Spanish energy giant Abengoa S.A. is an engineering and clean
technology company with operations in more than 50 countries
worldwide that provides innovative solutions for a diverse range
of customers in the energy and environmental sectors.  Abengoa is
one of the world's top builders of power lines transporting
energy across Latin America and a top engineering and
construction business, making massive renewable-energy power
plants worldwide.

As of the end of 2015, Abengoa, S.A. was the parent company of
687 other companies around the world, including 577 subsidiaries,
78 associates, 31 joint ventures, and 211 Spanish partnerships.
Additionally, the Abengoa Group held a number of other interests
of less than 20% in other entities.

On Nov. 25, 2015 in Spain, Abengoa S.A. announced its intention
to seek protection under Article 5bis of Spanish insolvency law,
a pre-insolvency statute that permits a company to enter into
negotiations with certain creditors for restricting of its
financial affairs.  The Spanish company is facing a March 28,
2016, deadline to agree on a viability plan or restructuring plan
with its banks and bondholders, without which it could be forced
to declare bankruptcy.

On March 16, 2016, Abengoa presented its Business Plan and
Financial Restructuring Plan in Madrid to all of its
stakeholders.

                        U.S. Bankruptcy

Abengoa, S.A., and 24 of its subsidiaries filed Chapter 15
petitions (Bankr. D. Del. Case Nos. 16-10754 to 16-10778) on
March 28, 2016, to seek U.S. recognition of its restructuring
proceedings in Spain.  Christopher Morris signed the petitions as
foreign representative.  DLA Piper LLP (US) represents the
Debtors as counsel.

Involuntary petitions were filed against the three affiliated
entities -- Abengoa Bioenergy of Nebraska, LLC, Abengoa Bioenergy
Company, LLC, and Abengoa Bioenergy Biomass of Kansas, LLC
under Chapter 7 of the Bankruptcy Code in the United States
Bankruptcy Court for the District of Nebraska and the United
States Bankruptcy Court for the District of Kansas.  The
bankruptcy cases for affiliate Abengoa Bioenergy of Nebraska, LLC
and Abengoa Bioenergy Company, LLC were converted to cases under
chapter 11 of the Bankruptcy Code and transferred to the United
States Bankruptcy Court for the Eastern District of Missouri.

On Feb. 24, 2016, Abengoa Bioenergy US Holding, LLC and 5 five
other U.S. units of Abengoa S.A., which collectively own,
operate, and/or service four ethanol plants in Ravenna, York,
Colwich, and Portales, each filed a voluntary petition for relief
under Chapter 11 of the United States Bankruptcy Code in the
United States Bankruptcy Court for the Eastern District of
Missouri.  The cases are pending before the Honorable Kathy A.
Surratt-States and are jointly administered under Case No. 16-
41161.

Abeinsa Holding Inc., and 12 other affiliates, which are energy,
engineering and environmental companies and indirect subsidiaries
of Abengoa, filed Chapter 11 bankruptcy petitions (Bankr. D. Del.
Proposed Lead Case No. 16-10790) on March 29, 2016.

The Chapter 11 petitions were signed by Javier Ramirez as
treasurer. They listed $1 billion to $10 billion in both assets
and liabilities.

Abener Teyma Hugoton General Partnership and five other entities
filed separate Chapter 11 petitions on April 6, 2016; and Abengoa
US Holding, LLC, Abengoa US, LLC and Abengoa US Operations, LLC
filed Chapter 11 petitions on April 7, 2016.  The cases are
consolidated under Lead Case No. 16-10790.

DLA Piper LLP (US) represents the Debtors as counsel.  Prime
Clerk serves as the Debtors' claims and noticing agent.

Andrew Vara, acting U.S. trustee for Region 3, appointed five
creditors of Abeinsa Holding Inc. and its affiliates to serve on
the official committee of unsecured creditors.

The Abeinsa Committee is represented by MORRIS, NICHOLS, ARSHT &
TUNNELL LLP's Robert J. Dehney, Esq., Andrew R. Remming, Esq.,
and Marcy J. McLaughlin, Esq.; and HOGAN LOVELLS US LLP's
Christopher R. Donoho, III, Esq., Ronald J. Silverman, Esq., and
M. Shane Johnson, Esq.


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


SK SPICE: S&P Affirms 'B' CCR & Revises Outlook to Stable
---------------------------------------------------------
S&P Global Ratings revised its outlook on Swiss specialty
chemicals company SK Spice Holding S.a.r.l. (Archroma) to stable
from positive.  At the same time, S&P affirmed its 'B' long-term
corporate credit rating on the company.

S&P also affirmed its issue ratings on Archroma's senior secured
debt at 'B'.  The recovery rating of '3' remains unchanged, with
recovery prospects now in the lower half of the 50%-70% range.

The outlook revision follows Archroma's announcement that it will
pay a $200 million debt-financed special dividend to its
shareholders.  S&P estimates that the company improved its
profitability significantly over the past 12 months, despite the
negative currency effects on sales from a strong U.S. dollar,
bringing down adjusted debt to EBITDA to about 3.6x at end-
September 2016.  This resulted from efficiency improvements in
capacity utilization, raw material price reductions,
manufacturing cost optimization, and not least the integration of
BASF Textile Chemicals.  S&P forecasts modestly positive free
operating cash flow (FOCF) in fiscal 2016 (year-ended Sept. 30,
2016).  The announced transaction will initially increase
leverage to 5.0x, based on adjusted debt of about $700 million,
which is still in line with the current rating.  In 2017 and
beyond, S&P expects further deleveraging on the back of positive
FOCF, which should leave sufficient headroom for bolt-on
acquisitions.

S&P currently sees Archroma's business risk profile as weak, as
it is mainly exposed to end markets with below-average growth
prospects, such as the textile and paper industries.  These
markets are highly competitive and partly oversupplied.  In
addition, the company faces a high risk of substitution in some
of its products, in particular in the textile chemicals market.

On the positive side, Archroma has some leading market shares in
niches of the textile and paper chemicals industry, and is well
diversified in terms of customers and geographies, with a strong
footprint in higher-growth Asian markets.  S&P also notes the
company's significant progress in improving its profitability in
fiscal 2016 to above 10%, which is a result of the acquisition of
BASF Textile Chemicals, operational cost reductions, and lower
raw material cost.

The stable outlook reflects S&P's view that Archroma's adjusted
debt to EBITDA will decline from about 5.0x post-transaction to
about 4.4x in 2017, which is well in line with the current
rating. It further incorporates S&P's view that the company will
gradually reduce its adjusted debt-to-EBITDA ratio from 2017,
based on projected FOCF of $40 million per year.

Rating downside could occur if adjusted debt to EBITDA increased
above 6x -- for example, because of unexpected acquisitions or
shareholder distributions -- or if the company's liquidity
deteriorated.

A higher rating would require that the company generate EBITDA
sustainably above $120 million per year and maintain leverage
below 5x.  In addition, it would depend on the company's and the
sponsor's financial policy and commitment to maintaining such
lower ratios.


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


CONSUMER ASSETS 2016-1: Fitch Assigns 'BB' Rating to Cl. D Notes
----------------------------------------------------------------
This rating action commentary replaces the version published on 4
October 4, 2016 to correct the rating sensitivities.

Fitch Ratings has assigned Marketplace Originated Consumer Assets
2016-1 Plc's (MOCA 2016-1) notes final ratings, as follows:

   -- GBP114m class A: 'AA-sf'; Outlook Stable

   -- GBP7.5m class B: 'Asf'; Outlook Stable

   -- GBP7.5m class C: 'BBB+sf'; Outlook Stable

   -- GBP9m class D: 'BBsf'; Outlook Stable

   -- GBP12.144m class Z: not rated

Due to revised note margins since assigning expected ratings, the
final rating for the class C notes is a notch higher than the
expected rating.

MOCA 2016-1 is a true-sale securitisation of a static pool of UK
unsecured consumer loans, originated through the marketplace
lending platform of Zopa Limited and sold by P2P Global
Investments (P2PGI). This transaction is the first marketplace
lending securitisation to be rated by Fitch in EMEA.

KEY RATING DRIVERS

'AAsf' Rating Cap

Zopa has been in business since 2004, but originations have only
grown to a significant volume in recent years, with dramatic
growth since 2011. The short performance history for most of the
origination volume, together with Zopa's untested operational
platform, is reflected in the 'AAsf' rating cap.

The 'AAsf' cap is the highest assigned to a marketplace lending
transaction globally by Fitch to date. Fitch believes the high
transparency of Zopa's data, the longer history than peers
globally and the robust origination and underwriting standards
support the high rating.

Strong Historical Performance

Based on the data provided, Fitch has assigned a default base
case of 4.7%, a recovery base case of 20%, and a base case loss
of 3.8%. These base cases compare favourably with the performance
of other unsecured consumer loans. However, this performance was
mainly in a favourable economic environment and against a
backdrop of strong growth in origination volumes combined with
development in the underwriting criteria. Fitch therefore applied
a very high default multiple of 5.5x at 'AA-sf'.

Steady Portfolio Migration

Zopa's appetite for risk has increased in recent years. It has
moved into lower-credit quality borrowers while increasing loan
terms across the board. The risk is actively managed with Zopa's
proprietary scorecard. Fitch has factored this migration into the
analysis of Zopa's past performance.

Strong Back-Up Servicer

Target Financial Services acts as back-up servicer and has a
strong track record as a servicer of consumer products. Target
receives periodic pool information and has specified an
invocation plan with a readiness level of 60 days. Fitch
therefore views exposure to Zopa as servicer as adequately
addressed.

RATING SENSITIVITIES

Expected impact upon the note rating of increased defaults:

   -- Current rating: 'AA-sf'/ 'Asf'/ 'BBB+sf'/ 'BBsf'

   -- Increase base case defaults by 10%: 'A+sf'/ 'Asf'/ 'BBBsf'/
      'BBsf'

   -- Increase base case defaults by 25%: 'Asf'/ 'BBB+sf'/ 'BBB-
      sf'/ 'BB-sf'

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

Expected impact upon the note rating of decreased recoveries:

   -- Current rating: 'AA-sf'/ 'Asf'/ 'BBB+sf'/ 'BBsf'

   -- Reduce base case recovery by 10%: 'AA-sf'/ 'Asf'/ 'BBB+sf'/
      'BBsf'

   -- Reduce base case recovery by 25%: 'AA-sf'/ 'Asf'/ 'BBB+sf'/
      'BBsf'

   -- Reduce base case recovery by 50%: 'AA-sf'/ 'Asf'/ 'BBBsf'/
      'BBsf'

Expected impact upon the note rating of increased defaults and
decreased recoveries:

   -- Current rating: 'AA-sf'/ 'Asf'/ 'BBB+sf'/ 'BBsf'

   -- Increase default base case by 10%; reduce recovery base
      case by 10%: 'A+sf'/ 'A-sf'/ 'BBBsf'/ 'BBsf'

   -- Increase default base case by 25%; reduce recovery base
      case by 25%: 'Asf'/ 'BBB+sf'/ 'BBB-sf'/ 'B+sf'

   -- Increase default base case by 50%; reduce recovery base
      case by 50%: 'BBB+sf'/ 'BBB-sf'/ 'BBsf'/ 'Bsf'

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 reviewed the results of a third party assessment conducted
on the asset portfolio information, and concluded that there were
no findings that affected the rating analysis.

Overall, Fitch's assessment of the asset pool 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.

   -- Loan-by-loan data for the preliminary pool provided by Zopa
      as at 31 August 2016

   -- Historical performance provided by Zopa for January 2005 to
      August 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
is available by accessing the appendix referenced under "Related
Research" below. The appendix also contains a comparison of these
RW&Es to those Fitch considers typical for the asset class as
detailed in the Special Report titled "Representations,
Warranties and Enforcement Mechanisms in Global Structured
Finance Transactions," dated 31 May 2016.


HOUSEPRINT: To Be Placed in Compulsory Liquidation
--------------------------------------------------
Print Week reports that at a creditors' meeting at the offices of
Cardiff-based insolvency practitioner Doyle Davies last October
11, attendees were informed that a winding-up petition had been
issued against the company by a creditor. The winding-up petition
will be heard on November 8, 2016.

The report says a liquidator's report to the creditors, seen by
PrintWeek, stated that Houseprint, trading as The Printing House,
appointed Brendan Doyle of Doyle Davies as liquidator and "that
it has been proved to the satisfaction of this meeting that the
company cannot, by reason of its liabilities, continue its
business, and that it is advisable to wind up the company, and
accordingly that the company be wound up voluntarily."

The meeting was chaired by Ms Clair Hunnisett, who is listed as
Houseprint's sole director on Companies House. It was also
attended by Neill John, who also goes by the name Neill Malcolm
Stuart John, an employee of the business who has been identified
by several people as their main contact at Houseprint, the report
discloses.

According to Print Week, John's previous directorships include
Britannia Press Ltd, Swane Ltd, Ambeck Corporation Ltd,
Masterclass Associates Ltd and Dragon Press Ltd. Hunnisett was
also a director of Ambeck Corporation and all five companies are
now either dissolved or in liquidation.

The creditors' meeting was initially due to be held at the
offices of Swansea-based Stones & Co in late August but Stones
withdrew its involvement at short notice and Doyle Davies took up
the case, the report relates.

The director's report to creditors, also seen by PrintWeek,
claimed that Houseprint was owed GBP500,000 comprising of non-
payment of goods by customers and breaches of their terms and
conditions of trading by their suppliers, the report recalls.

It said Houseprint had suffered following the fall in the pound's
value against the euro after the Brexit vote in the "notoriously
quiet" summer for the UK printing industry, the report relays.

According to Houseprint's statement of affairs, the business has
assets of GBP606,257, including a GBP585,385 debtor book and
GBP20,872 related to fixtures, fittings and equipment, the report
says.

In the period from June 1, 2015 to cessation of activities, the
business had racked up losses totalling GBP376,088, the report
recalls.

The report says it has 84 creditors, of which North London-based
Interpress Co. Ltd is owed the most (GBP24,460). Czech book
production specialist PB Tisk is owed GBP17,491 and Lancing, West
Sussex-based Claren Print is owed GBP12,024.

According to Print Week, Hunnisett is also the sole director of a
newly active business, UK Print Ltd, which is now operating from
the same registered office -- 3rd Floor 14 Hanover Street, London
W1S 1YH -- as used by Houseprint.

The description of UK Print Ltd's product offering of printed
books, catalogues and magazines is identical to that used by
Houseprint trading as The Printing House, the report discloses.

Creditors also include Darshan Sanghrajka, founder and chief
executive of social change agency Super Being Labs, who ordered a
print run of 5,000 books from Houseprint earlier this year but
never received them nor had his deposit of around GBP3,500
returned.

According to the report, Mr. Sanghrajka said: "I feel completely
disappointed. This is a clear case of someone doing something
wrong and yet we feel that we really aren't getting justice at
all. We have put a lot of effort in trying to retrieve our money
and we are not going to get it back, and he'll just do this to
someone else, the report relays.

"It's sad to see the amount of creditors that have been left
without proper answers. A real shame."

One UK Print customer told PrintWeek that he had placed an order
with the newly formed company at the end of August and that he
had initially been in daily contact with a man named Stuart. The
customer was given reasons for delay by Stuart and he eventually
became uncontactable, the report notes.

The report says this issue is similar to those experienced by the
many Houseprint customers that have approached PrintWeek over the
past few weeks.

Houseprint Ltd trading as The Printing House is entirely
unconnected with Crewe-based The Printing House Ltd, the report
relays.


GUARDIAN SYSTEMS: In Liquidation, Cuts 44 Jobs
----------------------------------------------
Daily Business reports that a long-established Stirling-based
window and door manufacturer, Guardian Systems, and an associate
company, Guardian Soft Furnishings, which supplied soft
furnishings, have been placed in liquidation with the loss of 44
jobs.

According to Daily Business, based in Springkerse Industrial
Estate in Stirling, Guardian Systems was trading strongly at the
start of the year, and had a turnover close to GBP1.5 million,
but witnessed a fall in orders during the summer, the report
relays.

The report says this led to major cash flow problems and
unsustainable losses, leading to a decision to place the company
in liquidation with 27 jobs axed.

Guardian Soft Furnishing supplied hotels and commercial premises,
in addition to residential clients.  The liquidation has led to
the loss of 17 jobs, the report relays.

According to the report, Derek Forsyth --
derek.forsyth@campbelldallas.co.uk -- head of restructuring and
insolvency with accountants Campbell Dallas said: "Guardian
Systems and Guardian Soft Furnishings were well-known in their
markets, and had good quality clients.

"It is unfortunate that a number of factors created significant
problems that ultimately caused both businesses to be placed in
liquidation.  We are marketing assets for sale and would
encourage interested parties to make contact with us as soon as
possible."


JOLLY GOOD: To Enter Liquidation Next Month
-------------------------------------------
News North Wales reports that a vehicle leasing company based in
Wrexham will enter liquidation next month.

Jolly Good Vehicle Rentals, based on the Pandy Industrial Estate
in Wrexham, has gone into liquidation and has called in
insolvency firm Parkin S Booth and Co to handle the process,
which will begin on November 3, according to News North Wales.

There are also Jolly Good Van Hire franchises in Deeside, Crewe,
Ely, Shrewsbury and Telford.  However, the Leader understands
that these sites are not affected, the report relays.

According to News North Wales, a spokesman for Parkin S Booth and
Co said: "We have been instructed to assist the Directors of
Jolly Good Vehicle Rentals Limited to Liquidate the company.

"The company will proceed into Liquidation on 3 November 2016.
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."


MAMHEAD HOUSE: Facing Liquidation as Debts Top GBP350,000
---------------------------------------------------------
Express and Echo reports that a luxury wedding venue near Exeter
used by pop star Peter Andre is set to go into liquidation with
debts of around GBP360,000.

Couples who had booked weddings at Mamhead House and a number of
trade creditors are expected to lose out when the business is
wound up, according to Express and Echo.

The report says Mamhead House and Castle Ltd, the wedding
business that operates from the GBP9.5 million Grade I-listed
mansion near Starcross, called in an insolvency practitioner last
month after hitting financial problems.

A creditors' meeting will be held at the Regus centre on Exeter
Business Park at 11:30 a.m. on Thursday, November 3.

Insolvency practitioner Shane Biddlecombe --
shane.biddlecombe@hjssolutions.co.uk -- of HJS Recovery in
Southampton, said the company would be placed into liquidation,
the report notes.

"It will be the liquidator's duty to investigate the reasons why
the company has ended up in this position and people haven't got
what they paid for," he added, notes the report.

Six couples who have paid thousands to have their weddings at
Mamhead are among the list of creditors, which also includes
unpaid staff, contractors and caterers, the report says.

Mr. Biddlecombe said his firm was still compiling details of
creditors and their claims in order to prepare a statement of the
company's affairs, the report discloses.

"Initially it was thought the company owed around GBP150,000 but
since then I have been in contact with more people owed money by
the company and that figure is now around GBP360,000.  The
company cannot continue to operate and there is no option but to
liquidate.  It's the only way forward," the report quotes Mr.
Biddlecombe as saying.

Mr. Biddlecombe said the company's assets would be insufficient
to fully reimburse all those owed money, though creditors may
receive some form of dividend, the report relates.

It is understood that Mamhead House and Castle Ltd does not own
the estate but used the property to hold functions, the report
notes.

The report says that in an e-mail to creditors, Richard Fuller,
director of Mamhead House and Castle, said the company was owed
"a substantial VAT refund" which could be used to repay some of
the money they are owed.

"I do of course realise that any apology from me is worthless in
the face of cancelled weddings and unpaid bills, nevertheless I
do sincerely apologise and will do my utmost to assist the
liquidators in the hope that it will minimise losses as much as
possible," Mr. Fuller said, notes the report.


NEW WORLD: Shareholders To Vote On Liquidation
---------------------------------------------
London South East reports that New World Resources PLC said it
will hold a general meeting for shareholders to vote on whether
to place the company in voluntary liquidation.


PARKDEAN RESORTS: S&P Affirms 'B' CCR & Revises Outlook to Pos.
---------------------------------------------------------------
S&P Global Ratings revised its outlook on U.K.-based holiday park
operator Parkdean Resorts Midco Ltd. to positive from stable.  At
the same time, S&P affirmed its 'B' long-term corporate credit
rating on the company.

S&P also affirmed its 'B+' long-term rating on the company's
GBP530 million senior secured term loan and GBP40 million
revolving credit facility (RCF).  The recovery rating on this
debt remains '2', indicating S&P's expectation for significant
recovery (in the higher half of the 70%-90% range) for
debtholders in the event of a payment default.

The positive outlook reflects S&P's view that Parkdean Resorts'
credit metrics are stronger than most of its 'B' rated peers',
based on its recent operating performance and cash flow
generation.  S&P expects 2016 results will be stronger than it
previously anticipated, supported by investments in existing
estates, mergers and acquisitions, as well as cost savings and
synergies following the forming of the company at the end of last
year.

Parkdean Resorts was formed in November 2015, through the
combination of Park Resorts and Parkdean.  This merger resulted
in the largest holiday park operator in the U.K. by number of
parks, in a very fragmented market.

S&P's assessment of Parkdean Resorts' weak business risk profile,
as S&P Global Ratings defines the term, reflects S&P's view of
its limited geographic diversity, being based solely in the U.K.,
some limitations on its accommodation offering in relation to the
broader competitive tourism market as these are typically only
used for holidays and weekend retreats, and exposure to cyclical
consumer discretionary spending.  In addition, there is a
moderately seasonal aspect to the group's revenues, which peak in
correlation with school holiday periods.

However, Parkdean Resorts has a track record of revenue
resilience and stable operating performance, even in a
recessionary environment.  In addition, revenues are predictable,
particularly annual income paid by caravan owners, and occupancy
rates are high during peak periods.

Furthermore, S&P views the group's profitability as solidly
within the average category, when compared with lodging peers,
with reported EBITDA margins of above 25%.

S&P's assessment of Parkdean Resorts' highly leveraged financial
risk profile reflects its view that total lease-adjusted debt to
EBITDA will be around 5x over the next 12-24 months. Parkdean
Resorts is privately owned by three financial sponsors: Electra
Private Equity with 45%, Alchemy Partners with 31%, and Polygon
with 7%.  The remaining 17% is owned by the management team.  S&P
believes financial sponsors frequently extract cash or otherwise
increase leverage over time.  As a result, S&P's financial policy
assessment of FS-6 currently constrains ratings upside at this
time.

S&P expects EBITDA coverage of interest expense to be solid,
above 4x through 2017, and the company to generate positive free
operating cash flow.

S&P's financial analysis is based on pro forma figures for the
combined entity as audited accounts are not yet available.

The positive outlook recognizes the company's improved
performance and resulting credit metrics.  It reflects S&P's view
that Parkdean Resorts' credit metrics are stronger than most of
its 'B' rated peers', and that S&P could raise the rating to 'B+'
within the next 12 months, provided that S&P gains further
confidence that leverage will consistently remain below 5x, in
light of the current private equity ownership.

S&P may consider an upgrade if Parkdean Resorts were to adopt a
more conservative financial policy, such that S&P believed that
adjusted debt to EBITDA would remain sustainably below 5.0x while
maintaining organic revenue growth and EBITDA improvement.  In
addition, S&P may consider revising the business risk profile to
fair, if profitability were to improve, with EBITDA margins above
30% on a consistent basis, which could also trigger an upgrade.

S&P could consider a negative rating action if the financial
sponsor owners were to pursue a more aggressive policy,
materially increasing leverage from current levels.  S&P could
also consider a negative rating action if operating performance
were to significantly deteriorate as a result of lower demand for
caravan holidays or if liquidity were to weaken to less than
adequate, which could occur if covenant headroom reduced to less
than 15%.


PREFERRED RESIDENTIAL 8: S&P Raises Rating on Cl. E Notes to BB
---------------------------------------------------------------
S&P Global Ratings took various credit rating actions on all
classes of notes in Preferred Residential Securities 7 PLC and
Preferred Residential Securities 8 PLC.

The rating actions follow S&P's credit and cash flow analysis of
June 2016 information and the application of its relevant
criteria.

In the December 2012 investor report, the servicer (Acenden Ltd.)
updated how it reports arrears to include amounts outstanding,
delinquencies, and other amounts owed.

Other amounts owed include, among other items, arrears of fees,
charges, costs, ground rent, and insurance.  Delinquencies
include principal and interest arrears on the mortgages, based on
the borrowers' monthly installments.

In these transactions, the servicer first allocates any arrears
payments to other amounts owed, then interest and principal
amounts.  From a borrowers' perspective, the servicer first
allocates any arrears payments to interest and principal amounts,
and then to other amounts owed.  This difference in the
servicer's allocation of payments for the transaction and the
borrower, results in amounts outstanding being greater than
delinquencies.

Amounts outstanding have been increasing for both transactions.

The notes in both transactions are currently amortizing
sequentially, as the pro rata arrears triggers have been
breached. As the amounts outstanding continue to increase, S&P
considers that the transactions will likely continue paying
principal sequentially and S&P has incorporated this assumption
in its cash flow analysis.  Both transactions have benefited from
increased credit enhancement since S&P's previous reviews, due to
nonamortizing reserve funds, combined with sequential
amortization.

Due to the low pool factors in each of the transactions, combined
with the relatively low number of loans and high arrears levels,
we believe there is increased tail end risk in the pools, which
S&P has incorporated into its analysis.

                 PREFERRED RESIDENTIAL SECURITIES 7

Both S&P's current weighted-average foreclosure frequency (WAFF)
and weighted-average loss severity (WALS) assumptions have
increased since its previous reviews.  S&P's WAFF assumptions
have increased primarily due to an increase in arrears.  In
addition, S&P is considering delinquencies rather than amounts
outstanding, when applying S&P's arrears adjustment.  S&P's WALS
assumptions have increased because S&P expects potential losses
to be higher, given the servicer's method of allocation of
payments of other amounts owed for the transaction.

The pool factor in this transaction is 7.3%.  Total amounts
outstanding have increased, representing 51.45% of the pool, up
from 43.77% in Q3 2013, while total arrears have risen to 29.94%
from 27.89% during the same period.

S&P lists uts WAFF and WALS assumptions at each rating level
below:

Rating        WAFF      WALS
level          (%)       (%)

AAA          44.62     46.66
AA           39.98     39.12
A            33.88     31.33
BBB          28.48     28.67
BB           24.33     26.87
B            22.10     25.91

Credit enhancement has increased for all classes of notes, which
has offset the increased credit risk in the pool since S&P's
previous review.  Therefore, S&P has raised to 'A- (sf)' from
'BBB (sf)' its rating on the class D notes and has affirmed its
'A- (sf)' ratings on all other classes of notes.

The bank account agreement is not in line with S&P's current
counterparty criteria.  Accordingly, S&P's ratings on the notes
in this transaction are capped at S&P's 'A-' long-term issuer
credit rating (ICR) on Barclays Bank PLC (A-/Negative/A-2).

                PREFERRED RESIDENTIAL SECURITIES 8

S&P's current WAFF assumptions have decreased since its previous
review, while S&P's WALS assumptions have increased.  S&P's WAFF
assumptions have decreased primarily due to greater seasoning and
a drop in arrears.  In addition, S&P is considering delinquencies
rather than amounts outstanding, when applying its arrears
adjustment.  S&P's WALS assumptions have increased because it
expects potential losses to be higher, given the servicer's
method of allocation of payments of other amounts owed for the
transaction.

The pool factor in this transaction is 14.99%.  Total amounts
outstanding have increased, representing 51.89% of the pool, up
from 45.78% in Q3 2013, while total arrears have declined to
26.88% from 30.43% during the same period.

S&P lists its WAFF and WALS assumptions at each rating level
below:

Rating      WAFF       WALS
level        (%)        (%)

AAA        40.51      53.89
AA         35.85      44.20
A          31.32      32.46
BBB        26.40      26.70
BB         22.67      23.48
B          20.92      22.22

Credit enhancement has increased for all classes of notes, which
has offset the increased credit risk in the pool at the higher
rating levels since S&P's previous review.  Therefore, S&P has
raised its ratings on the class D1a, D1c, and E notes, and
affirmed its 'A- (sf)' ratings on all other classes of notes.

The bank account agreement is not in line with S&P's current
counterparty criteria.  Accordingly, S&P's ratings on the notes
in this transaction are capped at its 'A-' long-term ICR on
Barclays Bank.

S&P's credit stability analysis for both transactions indicates
that the maximum projected deterioration that S&P would expect at
each rating level over one and three-year periods, under moderate
stress conditions, are in line with S&P's credit stability
criteria.

These transactions are backed by nonconforming U.K. residential
mortgages originated by Preferred Mortgages Ltd.

RATINGS LIST

Class            Rating
           To             From

Preferred Residential Securities 7 PLC
GBP600 Million Mortgage-Backed Floating-Rate Notes

Rating Raised

D          A- (sf)       BBB (sf)

Ratings Affirmed

A2         A- (sf)
B          A- (sf)
C          A- (sf)

Preferred Residential Securities 8 PLC
EUR108.5 Million, GBP336.2 Million, US$100 Million Mortgage-
Backed Floating-Rate Notes

Ratings Raised

D1a        BBB+ (sf)       BB- (sf)
D1c        BBB+ (sf)       BB- (sf)
E          BB (sf)         B- (sf)

Ratings Affirmed

A1a1       A- (sf)
A1a2       A- (sf)
A1b        A- (sf)
A1c        A- (sf)
B1a        A- (sf)
B1c        A- (sf)
C1a        A- (sf)
C1c        A- (sf)


REJUVENATE YOUR: Director Gets 13-Year Ban for Misusing Funds
-------------------------------------------------------------
A business consultant who was found to have misused monies
entrusted to him by unsuspecting investors through a business
consultancy company and acted with a lack of probity was banned
from being a company director for 13 years under the terms of a
disqualification undertaking he gave to the Secretary of State
for Business, Energy and Industrial Strategy.

Shazan Izziq Qureshi, who described himself as an "Alphapreneur"
on his business cards and email account, was a director of
Rejuvenate Your Business Ltd, and led the EU funded "Enterprise
Village" project in Liverpool for small rapidly growing
businesses.

Mr. Qureshi's web profile states:

"Shazan has been recognised as a 'Top 42 Under 42' entrepreneur
by NW Insider magazine in 2006, a finalist for MEN Small Business
of the Year in 2008, nominated for the prestigious LloydsTSB
Asian Jewel award, EMBF(NW) Rising Star award & Tiger Award in
2009 and been awarded Regional DM Campaign of the Year by Royal
Mail.

"Shazan has sat on the EMBF(NW) Board, NW Further Education
Group, an Ambassador for Enterprise UK, supported the charity
Karma Nirvana and Mix-d and been a Governor for Liverpool College
& Elton High School."

Rejuvenate Your Business was formed in 2008 by Anna Louise
Gilhooley, who had given a disqualification undertaking to the
Secretary of State for four years in May 2016 in connection with
the failure of the company. Mr. Qureshi was appointed director of
the company on 11/01/13 but was dismissed by Ms. Gilhooley on
June 2, 2014, when the extent of his misdealings became apparent.

An investigation into the failure of the company by The
Insolvency Service found that Mr. Qureshi used the company, and,
monies entrusted to it, to fund his own personal business
dealings, which included the buying and renovating of properties
in partnership with others in a joint venture. The investigation
revealed that Mr Qureshi blatantly disregarded his obligations
under the joint venture agreement and misused funds entrusted to
Rejuvenate Your Business by his joint venture partners. Mr.
Qureshi only made good the loss by borrowing monies from one of
the company's clients, a prominent surgeon, stating that the loan
was for the benefit of Rejuvenate Your Business. The loan was
intended to be secured by means of a fixed and floating charge
over RYB's assets, however, no such charge was created. Mr.
Qureshi also pledged security for the loan over on assets he did
not own. The lender was left with an unpaid unsecured debt of
GBP545,346 when Rejuvenate Your Business entered Liquidation. The
Insolvency Service's investigation further revealed that Mr.
Qureshi also persuaded an unsuspecting young woman to entrust
monies to Rejuvenate Your Business, supposedly for the purpose of
buying a residential property. These funds too were expended for
other purposes, leaving the depositor with an unpaid unsecured
debt of GBP125,500 when the company went into liquidation.

Robert Clarke, Head of Insolvent Investigations North at the
Insolvency Service, said:

"This was a clear case of abuse of trust, which has caused much
financial loss and distress to those who trusted Mr Qureshi with
substantial sums of money. The circumstances of Mr Qureshi's
dealings with external parties meant that he owed not only a duty
of trust but also an obligation of transparency and probity in
relation to such dealings. He clearly failed to provide either.
The Insolvency Service will not hesitate to use the full force of
the disqualification regime to remove such individuals from the
marketplace with a view to maintaining its integrity and
reputation, the length of the disqualification is evidence of the
seriousness with which such conduct is viewed."

Rejuvenate Your Business Ltd was incorporated on 29 July 2008 and
latterly traded from Suite 114, Imperial Court, Exchange Street
East, Liverpool, L2 3AB.

Mr. Qureshi was a director from Jan. 11, 2013 until June 2,
2014.The estimated deficiency at the date of Liquidation was
GBP928,359.

On Oct. 3, 2016, the Secretary of State accepted a
Disqualification Undertaking from Shazan Qureshi, effective from
Oct. 24, 2016, for a period of 13 years. The matters of
unfitness, which Mr. Qureshi did not dispute in the
Disqualification Undertaking, were that he caused Rejuvenate Your
Business Ltd (RYB) to trade with a lack of commercial probity.


SIP FRAMES: CVR Global Appointed as Administrators
--------------------------------------------------
Stephanie Wix at Accountancy Age reports that partners from
insolvency specialist CVR Global will be the administrators of
manufacturer of structural insulated panels, Sip Frames.

The partners appointed for the administration are Elias Paourou
and David Oprey, the report discloses.

Accountancy Age relates that the administrators have confirmed
that there are parties interested in buying the business. "We are
in talks with parties who are interested in buying the business
and will be updating creditors in due course," the report quotes
Mr. Paourou as saying.

The report says Sips Frames UK traded as Sips Eco Panels and all
40 staff have been made redundant.

"Our appointment has come as a result of the company running up
substantial losses which has led to contracts not being
fulfilled. We are in the process of carrying out a full review of
the company's affairs, but unfortunately the company has ceased
trading," Mr. Paourou, as cited by Accountancy Age, added.

Sip Frames produced SIPs are structural frames made from two
parallel layers of structure and a layer of insulation, for the
construction industry. Sips Eco Panels had a factory in
Glenrothes, Fife and a head office in Sudbury.


XCITE ENERGY: Faces Liquidation, Shares Suspended
-------------------------------------------------
The Scotsman reports that concerns have been raised over the
future of the key Bentley oilfield in the North Sea after shares
in Xcite Energy were suspended on Oct. 24 and the firm looked set
to be liquidated.

The fears came after the breakdown of crunch talks between
bondholders the Aim-quoted firm, which has its operational
headquarters in Aberdeen and its registered office in the British
Virgin Islands, The Scotsman relates.

Xcite had been in talks to hand 98.5% of its shares to lenders,
The Scotsman discloses.  However, it said on Oct. 24 that the
main bondholders were "not satisfied that the transaction is
capable of being implemented in a manner acceptable to them", The
Scotsman relays.

According to The Scotsman, the company said added: "On this
basis, they expect to instruct the bond trustee to petition the
court in the British Virgin Islands within the next ten days
requesting the appointment of a liquidator to the company, which
is expected to take effect approximately four to six weeks from
the filing of such request." Xcite, which was incorporated in
January 2007, said liquidation was unlikely to result in the
return of any value to its existing shareholders.

Xcite stressed that its wholly owned UK subsidiary Xcite Energy
Resources (XER) and the unit's assets "are not expected to be the
subject of enforcement action and XER is expected to remain a
going concern throughout this process", The Scotsman notes.

Xcite Energy is an oil company.


                            *********

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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