TCREUR_Public/161101.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Tuesday, November 1, 2016, Vol. 17, No. 216



TELENET INTERNATIONAL: S&P Rates Proposed EUR500MM Term Loan 'B+'




JSC TBC: Moody's Affirms Ba3 Local Currency Deposit Rating


ALFA BOND: Fitch Assigns B Rating to Perpetual Add'l. AT1 Notes
BLACKROCK EUROPEAN: Moody's Assigns (P)B2 Rating to Class F Notes
SCF RAHOITUSPALVELUT: Moody's Assigns Ba2 Rating to Class E Notes
SCF RAHOITUSPALVELUT: Fitch Assigns BB+ Rating to Cl. E Notes


SIENA PMI 2016: Fitch Assigns B- Rating to Class C Notes


KAZAKHTELECOM: S&P Affirms 'BB' CCR & Revises Outlook to Positive


DRYDEN 46 EURO: S&P Assigns B- Rating to Class F Notes


CARPATICA ASIG: Court Rejects Bankruptcy Ruling Appeal


IG SEISMIC: Moody's Confirms B3 Corporate Family Rating
CB KUBAN UNIVERSAL: Put on Provisional Administration
MOSCOW UNITED: Fitch Affirms 'BB+' IDR, Outlook Stable
RUSSIAN HELICOPTERS: Fitch Raises LT IDR to 'BB+', Outlook Stable

U N I T E D   K I N G D O M

BRACKEN MIDCO1: Fitch Assigns 'B+' IDR, Outlook Stable
CLAVIS SECURITIES 2006-01: Fitch Puts BB Rating on Watch Neg.
EXPRO HOLDINGS: S&P Lowers Corporate Credit Rating to 'SD'
IGAS ENERGY: Bond Waivers Take Effect, In Talks with Investors
SOHO HOUSE: Obtains GBP40 Mil. in Fresh Funds Following Losses

TES GROUP: In Administration, Sells Consulting Business
THPA FINANCE: Fitch Affirms 'B' Rating on Class C Notes



TELENET INTERNATIONAL: S&P Rates Proposed EUR500MM Term Loan 'B+'
S&P Global Ratings said that it has assigned its 'B+' issue
ratings to the proposed EUR500 million term loan AE to be
borrowed by Telenet International Finance S.a.r.l. and the
proposed $750 million term loan AF to be borrowed by Telenet
Financing USD LLC.  The recovery rating on the proposed term
loans is '3', indicating S&P's expectation of recovery prospects
in the lower half of the 50%-70% range.  Telenet Group Holding N.
V. (Telenet; B+/Stable/--), Belgian provider of
telecommunications and cable TV services, intends to use the
proceeds of these loans to partially repay its existing term

In addition, S&P affirmed its 'B+' issue ratings on Telenet's
existing senior secured term loans and the senior secured notes
issued by special-purpose vehicles.  The recovery rating on this
debt is '3', indicating S&P's expectation of recovery prospects
in the lower half of the 50%-70% range.

In S&P's view, the recovery prospects on Telenet's debt
instruments are constrained by the amount of pari passu secured
debt.  As part of the proposed partial refinancing, the company
intends to amend the term loans' documentation, in particular,
incorporate the removal of the financial maintenance covenants.

Under S&P's hypothetical default scenario, it assumes materially
increasing competitive pressure, difficulties and additional
costs related to the integration of BASE into the group, and, to
a lesser extent, unfavorable regulatory changes, resulting in
weaker-than-expected revenues and lower margins.

S&P values Telenet as a going concern given S&P's view of its
leading market position in cable TV and fixed broadband in its
service area, the superior quality of its network, and the high
barriers of entry in the industry.

   -- Year of default: 2020
   -- EBITDA at emergence: EUR606 million
   -- Implied enterprise value multiple: 5.5x
   -- Jurisdiction: Belgium

   -- Gross enterprise value at default: EUR3,330 million
   -- Administrative costs: EUR165 million
   -- Net value available to creditors: EUR3,165 million
   -- Priority claims: EUR480 million
   -- Senior Secured debt claims: EUR4,736 million*
      -- Recovery expectation: 50%-70% (lower half of the range)
*All debt amounts include six months of prepetition interest.

S&P's long-term corporate credit rating and outlook on Telenet
are unaffected by the proposed transaction.  Although S&P thinks
the transaction could modestly lower Telenet's interest expense,
S&P forecasts that the company's S&P Global Ratings-adjusted
leverage will remain unchanged.  Furthermore, S&P continues to
expect that Telenet's adjusted free operating cash flow will stay
below 5% of adjusted debt over the next 12 months.


S&P Global Ratings said that it had raised its long-term
corporate credit rating on Hrvatska Elektroprivreda d.d. (HEP) to
'BB' from 'BB-'.  The outlook is negative.  At the same time, S&P
raised the issue rating on its senior unsecured debt to 'BB' from

The upgrade is largely as a result of HEP's much stronger
liquidity.  The company has built up a large cash balance of
Croatian kuna (HRK) 2.8 billion, predominantly from the more
favorable hydrology and commodity price environment during the
past two years.  In addition, HEP has an improved outlook for
working capital management given its, as yet untested, energy-
tariff-setting authority for its universal retail customers.  S&P
also understands that the company's uncommitted bank facilities
are being renegotiated.

"We expect HEP's cash flow from year to year to continue to be
volatile, although not as volatile as in the past.  We currently
assume lower and relatively flat fossil fuel prices in the next
two to three years.  In 2014 and 2015, credit metrics benefited
from very favorable hydrological conditions, declining
electricity import prices, and decreasing procurement costs for
natural gas. As a result, funds from operations (FFO) was about
HRK4 billion or more and adjusted FFO to debt around 90% or
better.  It is worth remembering that in the drought years of
2011 and 2012, FFO was below HRK2 billion and adjusted FFO to
debt below 30%.  The drought conditions in those years were out
of the ordinary and concurrent with higher-than-average fossil
fuel prices.

HEP owns and operates the monopoly regulated distribution and
transmission networks in Croatia, which generate about 50% of
annual EBITDA (forecast at about HRK4.3 billion in an average
hydrology year; equivalent to EUR540 million).  The rate-setting
methodology and framework, established by the regulator in 2006,
aims to allow the utility to recover its costs and earn an
approved rate of return.  However, a meaningful track record of
regulatory independence has not been established because, until
recently, the government set the final rates.  S&P therefore
views regulatory support as weaker than in many other western
European jurisdictions.

The other half of HEP's EBITDA is derived from the company's
generation supply and retail segments.  The generation supply
business represents about 80% of the market and benefits from
significant hydrological resources (including pump storage
facilities) and some nuclear base load generation (about 15% of
national demand).  Its assets are well diversified and located
across the country, with only around 20% of energy derived from
carbon-based fuels in an average year.  However, in S&P's view,
an even earnings track record through various economic and
political cycles will be required to fully demonstrate that
commodity rate-setting is insulated from political intervention.

HEP also has a dominant retail market share (about 85%).  The
company has the advantage of supplying legacy universal customers
(those that have not selected an unregulated retail supplier) and
guaranteed customers (those who are faced with a nonperforming
retail supplier) with its own supply.  These relatively sticky
universal household customers still represent the bulk of the
retail market.  Since market opening, only 15% of the retail
market has moved to competitors.  Given the modest commodity
price forecast, S&P do not expect a large amount of switching to
HEP's competitors.

S&P considers HEP to be a government-related entity, and believe
there is a high likelihood that the Croatian government
(BB/Negative/B) would provide extraordinary support to HEP in the
event of financial distress.  HEP is key to implementing the
government's energy policies and S&P do not believe there is any
plan to privatize the company.  Both the Minister of Economy and
the Minister of Energy and the Environment participate in the
company's resource-planning process.  Although dividends from HEP
are an important source of government revenue, the government has
provided liquidity support under stress conditions in the past.

The negative outlook on HEP reflects the negative outlook on the
sovereign and that a one-notch downgrade of Croatia would likely
lead us to lower the rating on HEP.  This is because S&P do not
view HEP as sufficiently protected from potential extraordinary
government intervention in a postulated government default
scenario to warrant rating it above the sovereign.

S&P would likely lower the rating on HEP if S&P lowered the
rating on Croatia to 'BB-'.  Although S&P do not currently see
pressure on HEP's stand-alone credit worthiness within its 12-18
month outlook period, S&P could lower the rating on HEP if its
liquidity deteriorates again to less than adequate or if S&P
expects the company to lever up its balance sheet to fund a major
construction project, such as the proposed new coal-fired
generation at Plomin C (estimated total cost of EUR1.4 billion).

All else being equal, S&P would expect to revise the outlook back
to stable if S&P took a similar action on Croatia.


JSC TBC: Moody's Affirms Ba3 Local Currency Deposit Rating
Moody's Investors Service, (Moody's) has affirmed JSC TBC Bank's
(TBC) Ba3/Not-Prime local currency and B1/Not-Prime foreign
currency deposit ratings. Moody's also affirmed the bank's
standalone baseline credit assessment (BCA) and Adjusted BCA of
ba3 and its Counterparty Risk Assessment of Ba2(cr) and
Not-Prime(cr). The outlook on the bank's long-term deposit
ratings is stable.

The rating action follows TBC's 100% acquisition of JSC Bank
Republic (Bank Republic) on 20 October 2016, Societe Generale's
(SG; Deposits A2 Stable, BCA baa2) Georgian subsidiary, for $101
million in cash and around 3 million of TBC Bank Group Plc (TBC's
UK holding company; unrated) shares.


The ratings affirmation, with a stable outlook, reflects Moody's
view that the reduction in TBC's capital ratios that will result
from the transaction will be counterbalanced by an enhanced
market position, underlying strong recurring profitability and
potential synergies that would lead to higher earnings and
therefore sustained strong internal capital generation capacity.
Furthermore, the acquisition will have limited impact on TBC's
asset risk and funding profiles, while TBC has demonstrated its
ability to successfully acquire banks in the past.

Moody's estimates that the acquisition of Bank Republic will
erode TBC's capital ratios by roughly 2-3 percentage points. The
acquisition price reflects a price-to-book value of approximately
1.1x, of which 70% was paid in cash and 30% in new shares issued
to SG and the European Bank for Reconstruction and Development
(ERBD; Issuer Rating Aaa, Stable; Bank Republic's minority
shareholder). Nevertheless, the rating agency expects TBC's
tangible common equity to risk-weighted assets to remain adequate
at around 12% by year-end 2016, and in line with peers.
Furthermore, the bank has historically maintained strong internal
capital generation capacity with an average net income to
tangible assets of 3% in the last three years.

Moody's also notes that, following the completion of the
transaction, TBC will incorporate Bank Republic's GEL1.7 billion
(roughly $700 million) assets, 333,000 clients and 41 branches to
its network, boosting its market position as a leading bank in
Georgia with a lending and deposit market share of approximately
35%. TBC expects to extract pre-tax cost synergies of around
GEL21 million per year, but also a potentially higher cost of
funds of about GEL6 million as Bank Republic had benefited from
lower cost of funds due mainly to SG guarantees on some of its
borrowings, translating to an increase in return on equity of
roughly one percentage point. The acquisition is aligned with
TBC's strategy of reinforcing its position in the retail banking
segment, and also presents potential opportunities for cross-
selling to newly acquired customers.

Market funding reliance will increase; Bank Republic's net loans
to deposit ratio was 162% at the end of 2015, higher than that of
TBC. However, most of Bank Republic's borrowings were from
international financial institutions (IFIs), including the EBRD,
which are long-term and relatively less confidence sensitive than
other market funds. As such, Moody's expects that TBC Bank's net
loans over customer deposits and IFI funding will remain broadly
unchanged at around 96% by the end of the year.

Moody's expects that the transaction will not have a material
impact on TBC's asset risk as it does not significantly change
the bank's portfolio makeup, in which retail, micro and, small
and medium enterprises loans will continue to account for roughly
two-thirds of total lending, and adds a relatively seasoned and
so far adequately performing portfolio. Bank Republic's credit
costs in 2015 were 1.4% compared with 1.7% of gross loans for
TBC, while problem loans at Bank Republic were adequately covered
by provisions at 87% as of December 2015. The rating agency notes
that its assessment of TBC continues to reflect elevated credit
risks arising from extensive foreign currency lending (which
stood at 66% of total loans as of June 2016) and an expected
resumption of rapid credit growth in the coming quarters.

In addition, the transaction, which is the largest bank
acquisition so far in Georgia, will entail execution risks.
However, in recent years TBC has gained experience incorporating
assets, new customers, branches and employees. In 2014, it
successfully acquired Bank Constanta and, in 2015, a micro-loan
portfolio from ProCredit Bank (unrated).

The outlook on the long-term deposit ratings is stable,
reflecting TBC's resilient credit profile despite the expected
reduction in the bank's capital ratios that will arise from the
acquisition and Moody's expectation that internal capital
generation will remain strong and allow the bank to rebuild its
capital buffers.

JSC TBC Bank is headquartered in Tbilisi, Georgia and reported
GEL 6.8billion ($2.9 billion) of consolidated assets as of 30
June 2016, before the acquisition of Bank Republic.


Upward pressure on TBC's ratings is contingent on the evolution
and diversification of the Georgian economy and a substantial
reduction of loan and deposit dollarisation.

The bank's B1 long-term foreign-currency deposit rating is
constrained by Georgia's foreign-currency deposit ceiling and
would be upgraded in the event that the ceiling for such deposits
is raised.


Downward pressure on TBC's ratings would develop as a result of:
(1) rising levels of non-performing loans, which would impact
bottom-line profitability; (2) the bank's capital metrics falling
below those of domestic peers; (3) a resurgence of political risk
that would lead to significant funding outflows; or (4) a
significant deterioration of domestic operating conditions in
Georgia, as described in Moody's Macro Profile for the country.


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


ALFA BOND: Fitch Assigns B Rating to Perpetual Add'l. AT1 Notes
Fitch Ratings has assigned Alfa Bond Issuance plc's (ABI)
upcoming issue of perpetual additional Tier 1 (AT1) notes an
expected long-term rating of 'B(EXP)'.  The final rating is
contingent upon the receipt of final documents conforming to
information already received.

ABI, an Irish SPV issuing the notes will be on-lending the
proceeds in form of a perpetual subordinated loan to Russian JSC
Alfa-Bank (Alfa, BB+/Negative/bb+).

                         KEY RATING DRIVERS

The planned notes should qualify as AT1 instrument in regulatory
accounts due to a full coupon omission option at Alfa's
discretion and full or partial write-down in case of either
Alfa's core equity tier 1 (CET1) ratio falling below 5.125%
(versus 4.5% generally required minimum) or the Central Bank of
Russia (CBR) approving a plan for the participation of the
Deposit Insurance Agency (DIA) in bankruptcy prevention measures
in respect of the bank (Fitch believes the latter is possible as
soon as a bank breaches any of its mandatory capital ratios or
certain other liquidity and capital requirements).

Alfa's AT1 perpetual notes are rated four notches lower than the
bank's 'bb+' Viability Rating (VR), the maximum rating under
Fitch's Global Bank Criteria that can be assigned to deeply
subordinated notes with fully discretionary coupon omission
issued by banks with a VR anchor of 'bb+'.

The notching comprises (i) two notches for higher loss severity
relative to senior unsecured creditors and (ii) a further two
notches for non-performance risk, as Alfa has an option to cancel
at its discretion the coupon payments.  The latter is more likely
if the capital ratios fall in the capital buffer zone, although
this risk is somewhat mitigated by Alfa's stable financial
profile and general policy of maintaining decent headroom (about
150bps-200bps) over minimum capital ratios.

The notes will have no established redemption date; however, Alfa
will have an option (subject to CBR approval) to repay the notes
at the first coupon reset date (2021) and quarterly at each
future coupon date payment afterwards.

Alfa's regulatory CET1 and Tier 1 ratios were both at 8.1% at
end-8M16, but will decrease by about 30bps-40bps as a result of
the consolidation of the rehabilitated Bank Baltyiskiy planned
for 4Q16-1H17.  The required minimums including applicable
buffers (capital conservation buffer of 0.625% and 0.15% systemic
importance buffer) are currently, respectively, 5.3% and 6.8%.
The buffers are being gradually phased in until 2019 when they
should reach 2.5% and 1%, resulting in fully loaded minimum
requirements of, respectively, 8% and 9.5%.

                       RATING SENSITIVITIES

The issue rating is primarily sensitive to a downgrade of Alfa's
VR.  If the VR is downgraded to 'bb', the notes will also be
downgraded by one notch.  The rating would also be downgraded if
Fitch changes its assessment of the probability of their non-
performance relative to the risk captured in the bank's VR or if
the instrument becomes non-performing, i.e. if the bank cancels
any coupon payment or at least partially writes off the
principal. In that case the issue will be downgraded based on
Fitch's expectations about the form and duration of non-

However, if Alfa's VR is upgraded to 'bbb-' (unlikely in the
medium term as we expect to keep at least one notch difference
between Alfa and the Russian sovereign rating, which is currently
'BBB-'), Fitch will likely increase the notching between the
notes' rating and Alfa's VR and affirm the notes at 'B', as this
is the maximum rating under Fitch's Global Bank Criteria that can
be assigned to deeply subordinated notes with fully discretionary
coupon omission issued by banks with a VR anchor of 'bbb-'.

BLACKROCK EUROPEAN: Moody's Assigns (P)B2 Rating to Class F Notes
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by BlackRock
European CLO II Designated Activity Company (the "Issuer" or
"BlackRock CLO II"):

   -- EUR 244,000,000 Class A Senior Secured Floating Rate Notes
      due 2030, Assigned (P)Aaa (sf)

   -- EUR 48,000,000 Class B Senior Secured Floating Rate Notes
      due 2030, Assigned (P)Aa2 (sf)

   -- EUR 23,000,000 Class C Senior Secured Deferrable Floating
      Rate Notes due 2030, Assigned (P)A2 (sf)

   -- EUR 20,000,000 Class D Senior Secured Deferrable Floating
      Rate Notes due 2030, Assigned (P)Baa2 (sf)

   -- EUR 25,000,000 Class E Senior Secured Deferrable Floating
      Rate Notes due 2030, Assigned (P)Ba2 (sf)

   -- EUR 12,000,000 Class F Senior Secured Deferrable Floating
      Rate Notes due 2030, Assigned (P)B2 (sf)

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


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

BlackRock CLO II is a managed cash flow CLO. At least 90% of the
portfolio must consist of secured senior loans or senior secured
bonds and up to 10% of the portfolio may consist of unsecured
senior loans, second-lien loans, high yield bonds and mezzanine
loans. The portfolio is expected to be at least 70% ramped up as
of the closing date and to be comprised predominantly of
corporate loans to obligors domiciled in Western Europe. The
remainder of the portfolio will be acquired during the six month
ramp-up period in compliance with the portfolio guidelines.

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

In addition to the six classes of notes rated by Moody's, the
Issuer will issue EUR 44,500,000 of subordinated notes. Moody's
will not assign rating to this class of notes.

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

Factors that would lead to an upgrade or downgrade of the

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

Loss and Cash Flow Analysis:

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

Moody's used the following base-case modeling assumptions:

   -- Par Amount: EUR 400,000,000

   -- Diversity Score: 36

   -- Weighted Average Rating Factor (WARF): 2775

   -- Weighted Average Spread (WAS): 4.05%

   -- Weighted Average Coupon (WAC): 5.25%

   -- Weighted Average Recovery Rate (WARR): 43.50%

   -- Weighted Average Life (WAL): 8 years

As part of the base case, Moody's has addressed the potential
exposure to obligors domiciled in countries with local currency
country risk ceiling (LCC) of A1 or below. As per the portfolio
constraints, exposures to countries with local currency country
risk ceiling rating of between A1 to A3 cannot exceed 10%.
Following the effective date, and given these portfolio
constraints and the current sovereign ratings of eligible
countries, the total exposure to countries with a LCC of A1 or
below may not exceed 10% of the total portfolio. The remainder of
the pool will be domiciled in countries which currently have a
LCC of Aa3 and above. Given this portfolio composition, the model
was run without the need to apply portfolio haircuts as further
described in the methodology.

Stress Scenarios:

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

Percentage Change in WARF: WARF + 15% (to 3191 from 2775)

Ratings Impact in Rating Notches:

   -- Class A Senior Secured Floating Rate Notes: 0

   -- Class B Senior Secured Floating Rate Notes: -2

   -- Class C Senior Secured Deferrable Floating Rate Notes: -2

   -- Class D Senior Secured Deferrable Floating Rate Notes: -2

   -- Class E Senior Secured Deferrable Floating Rate Notes: -1

   -- Class F Senior Secured Deferrable Floating Rate Notes: 0

Percentage Change in WARF: WARF +30% (to 3608 from 2775)

Ratings Impact in Rating Notches:

   -- Class A Senior Secured Floating Rate Notes: -1

   -- Class B Senior Secured Floating Rate Notes: -3

   -- Class C Senior Secured Deferrable Floating Rate Notes: -4

   -- Class D Senior Secured Deferrable Floating Rate Notes: -2

   -- Class E Senior Secured Deferrable Floating Rate Notes: -2

   -- Class F Senior Secured Deferrable Floating Rate Notes: -3

Methodology Underlying the Rating Action:

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

SCF RAHOITUSPALVELUT: Moody's Assigns Ba2 Rating to Class E Notes
Moody's Investors Service assigned definitive ratings to the
following asset-backed securities (ABS) notes issued by SCF
Rahoituspalvelut II Designated Activity Company:

   -- EUR543.4M Class A Floating Rate Notes due 2025, Definitive
      Rating Assigned Aaa (sf)

   -- EUR27.3M Class B Fixed Rate Notes due 2025, Definitive
      Rating Assigned Aa3 (sf)

   -- EUR9.1M Class C Fixed Rate Notes due 2025, Definitive
      Rating Assigned A3 (sf)

   -- EUR6.1M Class D Fixed Rate Notes due 2025, Definitive
      Rating Assigned Baa2 (sf)

   -- EUR10.3M Class E Fixed Rate Notes due 2025, Definitive
      Rating Assigned Ba2 (sf)

   -- Subordinated and unrated EUR11.0M Class F Fixed Rate Notes
      due 2025 is also issued.


Today's rating assignment reflects the transaction's structure as
a static cash securitisation of auto loans extended to obligors
in Finland by Santander Consumer Finance Oy (not rated), which is
a wholly owned subsidiary of Santander Consumer Bank AS, which in
turn is a wholly owned subsidiary of Santander Consumer Finance
S.A. (A3/P-2/A3(cr)/P-2(cr)). This is the fifth Moody's rated
public securitisation transaction sponsored by Santander Consumer
Finance Oy. The seller also acts as servicer of the portfolio. A
back-up servicer facilitator is appointed at close (Santander
Consumer Finance S.A.) and the structure envisions the selection
of a back-up servicer within 60 days should (i) Santander
Consumer Finance S.A. be downgraded below a Baa3 rating or (ii)
Santander Consumer Finance S.A. no longer holds at least 50% of
the share capital of the servicer.

The securitised portfolio of underlying assets consists of auto
loans distributed through dealers to private individuals and
self-employed individuals (together 82.5%) or commercial entities
(17.5%). These loans finance new cars (36.4%) and used cars
(63.6%). As of October 2016 the securitised portfolio consists of
39,481 loans with a weighted average seasoning of 6.6 months. The
portfolio consists of approximately 47.5% "balloon" loans, which
have equal instalments during the life of the loan and a larger
balloon payment at loan maturity. On average, the balloon
instalment portion accounts for 30.7% of the total principal of
balloon loans and 14.6% of the entire portfolio cash flows.

According to Moody's, the transaction benefits from various
credit strengths such as a granular portfolio and an amortising
liquidity reserve of 1% of Class A and Class B outstanding notes
balance. However, Moody's notes that the transaction features
some credit weaknesses such as an unrated servicer and a higher
likelihood of deferred interest payments due on the Class E
Notes. Various mitigants have been included in the transaction
structure such as a back-up servicer facilitator which is obliged
to appoint a back-up servicer if certain triggers are breached.

Moody's analysis focused, amongst other factors, on (i)
historical portfolio performance information; (ii) the credit
enhancement provided by the subordination; (iii) the liquidity
support available in the transaction by way of the amortising 1%
liquidity reserve and the possibility of using principal to pay
interest; (iv) the appointment of a back-up servicer facilitator
at closing; (v) the independent cash manager and calculation
agent; (vi) the notification of the borrowers near the closing
date of the sale of the receivables and direction to borrowers to
pay directly into the issuer account, and (vii) the legal and
structural integrity of the transaction.


Moody's determined the portfolio lifetime expected defaults of
2.75%, expected recoveries of 45% and Aaa portfolio credit
enhancement ("PCE") of 11.5% related to borrower receivables.
"The expected defaults and recoveries capture our expectations of
performance considering the current economic outlook, while the
PCE captures the loss we expect the portfolio to suffer in the
event of a severe recession scenario," Moody's said. Expected
defaults and PCE are parameters used by Moody's to calibrate its
lognormal portfolio loss distribution curve and to associate a
probability with each potential future loss scenario in the
ABSROM cash flow model to rate Auto ABS. These main assumptions
remain unchanged compared to the previously rated SCF
Rahoituspalvelut I Designated Activity Company transaction on 29
October 2015.

Portfolio expected defaults of 2.75% are lower than the EMEA Auto
Loan ABS average and are based on Moody's assessment of the
lifetime expectation for the pool taking into account (i)
historic performance of the loan book of the originator, (ii)
benchmark transactions, and (iii) other qualitative
considerations, such as the high balloon loan component of the

Portfolio expected recoveries of 45% are in line with the EMEA
Auto Loan ABS average and are based on Moody's assessment of the
lifetime expectation for the pool taking into account (i)
historic performance of the loan book of the originator, (ii)
benchmark transactions, and (iii) other qualitative

PCE of 11.5% is in line with the EMEA Auto Loan ABS average and
is based on Moody's assessment of the pool which is mainly driven
by the high exposure to balloon loans despite considering the
strength of the originator and the relative ranking to originator
peers in the EMEA auto loan market. The PCE level of 11.5%
results in an implied coefficient of variation ("CoV") of 57.89%.


The principal methodology used in these ratings was Moody's
Global Approach to Rating Auto Loan-and-Lease Backed ABS,
published in October 2016.

The ratings address the expected loss posed to investors by the
legal final maturity. In Moody's opinion the structure allows for
the timely payment of interest on the Class A to Class B Notes
and the ultimate payment of interest and principal at par on the
Class A to Class E Notes on or before the rated final legal
maturity date. Moody's ratings address only the credit risks
associated with the transaction. Other non-credit risks have not
been addressed, but may have a significant effect on yield to

Provisional ratings were assigned on October 13, 2016.


Factors that may cause an upgrade of the ratings include a
significant better than expected performance of the pool together
with an increase in credit enhancement of notes.

Factors that may cause a downgrade of the ratings include a
decline in the overall performance of the pool and change in
control of the servicer or insolvency of the servicer.


Moody's used its cash flow model ABSROM as part of its
quantitative analysis of the transaction. The ABSROM cash flow
model enables users to model various features of a standard
European ABS transaction - including the specifics of the loss
distribution of the assets, their portfolio amortisation profile,
yield as well as the specific priority of payments, swaps and
reserve funds on the liability side of the ABS structure.


In rating auto loan ABS, default rate and recoveries are two key
inputs that determine the loss distribution. Parameter
sensitivities for this transaction have been tested for each
rated class of notes in the following manner: Moody's tested nine
scenarios derived from a combination of mean default: 2.75% (base
case), 3.00% (base case + 0.25%), 3.25% (base case + 0.5%) and
recoveries: 45% (base case), 40% (base case - 5%), 35% (base case
- 10%).

The results for Class A notes under these scenarios vary from Aaa
(base case) model output to Aa1 (model output where the mean
default is 3.25% and recoveries are 35%). Parameter sensitivities
provide a quantitative/model indicated calculation of the number
of notches that a Moody's rated structured finance security may
vary if certain input parameters used in the initial rating
process differed. The analysis assumes that the deal has not
aged. It is not intended to measure how the rating of the
security might migrate over time, but rather how the initial
model output of the security might have differed if the two
parameters within a given sector that have the greatest impact
were varied. Results for all other rated classes of notes can be
found in Moody's new issue report.

SCF RAHOITUSPALVELUT: Fitch Assigns BB+ Rating to Cl. E Notes
Fitch Ratings has assigned SCF Rahoituspalvelut II Designated
Activity Company final ratings as:

  EUR543.4 mil. class A: 'AAAsf'; Outlook Stable
  EUR27.3 mil. class B: 'AAsf'; Outlook Stable
  EUR9.1 mil. class C: 'A+sf'; Outlook Stable
  EUR6.1 mil. class D: 'Asf'; Outlook Stable
  EUR10.3 mil. class E: 'BB+sf'; Outlook Stable
  EUR11 mil. class F: not rated

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

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

                        KEY RATING DRIVERS

Solid Receivables Performance

Default rates have improved significantly since SCF Oy started
originations in 2007.  In Fitch's view, this is due to improved
economic conditions and origination practices.  Fitch set a
default rate assumption of 1.75%, taking into account the
continued sound performance of previous comparable transactions
from this originator.  Fitch has maintained the high stress
default multiple of 7.0x for 'AAAsf', which reflects the presence
of balloon payments, together with the low default base case and
fairly late default definition.

High Recoveries
The recoveries achieved by SCF Oy are among the highest for rated
European auto ABS.  Fitch has used a recovery assumption of 70%,
which was stressed with a high recovery haircut of 60% for
'AAAsf'.  The high haircut reflects a small used-car market and a
reliance on the government vehicle valuation mechanism in
determining the value of repossessed vehicles.

Adequate Liquidity Coverage
A liquidity reserve provides adequate liquidity coverage to the
class A and B notes.  The class C and below notes do not benefit
from the reserve, which means timely payment of interest on the
notes may not be achieved in the case of a servicing disruption,
constraining their highest achievable rating to 'A+sf'.

Stable Asset Outlook
Fitch believes the Finnish economic recovery is gathering pace,
with investment and consumer spending helping lift GDP growth to
an average of 0.8% year-on-year in 1H16.  Unemployment, which is
considered a key driver of asset performance, peaked at 9.5% in
2015 and is expected to gradually improve in 2016 and 2017.
Fitch expects stable auto loan performance in Finland.

                       RATING SENSITIVITIES

Expected impact on the notes' rating of increased defaults (class
Current rating: 'AAAsf'/'AAsf'/'A+sf'/'Asf'/'BB+sf'
Increase default base case by 10%: 'AAAsf'/'AA-
Increase default base case by 25%: 'AAAsf'/'AA-sf'/'Asf'/'A-
Increase default base case by 50%: 'AAsf'/'Asf'/'A-

Expected impact on the notes' rating of reduced recoveries (class
Current rating: 'AAAsf'/'AAsf'/'A+sf'/'Asf'/'BB+sf'
Reduce recovery base case by 10%:
Reduce recovery base case by 25%: 'AAAsf'/'AA-sf'/'A+sf'/'A-
Reduce recovery base case by 50%: 'AAAsf'/'A+sf'/'A-

Expected impact on the notes' rating of increased defaults and
reduced recoveries (class A/B/C/ D/ E):
Current rating: 'AAAsf'/'AAsf'/'A+sf'/'Asf'/'BB+sf'
Increase default base case by 10%; reduce recovery base case by
10%: 'AAAsf'/'AA-sf'/'A+sf'/'A-sf'/'BB+sf'
Increase default base case by 25%; reduce recovery base case by
25%: 'AA+sf/'A+sf'/'A-sf'/'BBB+s'f/'BBsf'
Increase default base case by 50%; reduce recovery base case by
50%: 'AA-sf'/'BBB+sf'/'BBB-sf'/'BB+sf'/'B-sf'

                           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.

Fitch conducted a review of a small targeted sample of SCF Oy's
origination files and found the information contained in the
reviewed files to be of adequate consistency with the
originator's policies and practices and the other information
provided to the agency about the asset portfolio.

Overall and together with the assumptions referred to above,
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.


SIENA PMI 2016: Fitch Assigns B- Rating to Class C Notes
Fitch Ratings has assigned Siena PMI 2016 S.r.l.'s notes final
ratings as:

  EUR470,000,000 Class A1: 'AA+sf'; Outlook Negative
  EUR400,000,000 Class A2: 'AA+sf'; Outlook Negative
  EUR150,000,000 Class B: 'A-sf'; Outlook Stable
  EUR313,000,000 Class C: 'B-sf'; Outlook Stable
  EUR406,300,000 junior notes: not rated

The transaction is a EUR1.7 bil. revolving securitisation of
secured and unsecured loans granted to Italian small- and medium-
sized businesses (SMEs) by Banca di Monte dei Paschi di Siena

                        KEY RATING DRIVERS

High Default Probability
Fitch set a bank benchmark annual average probability of default
of 7.1% based on the observed default rates (ODRs) for the
originator's SME lending book.  The bank benchmark reflects a
challenging economic environment in Italy.

Low Recoveries
The portfolio at closing comprised mostly unsecured loans.  Fitch
expects a base case recovery rate of 30% for unsecured loans.

Revolving Period
The transaction is able to purchase additional assets from the
originator until February 2018.  Fitch has considered in its
analysis the potential migration of portfolio characteristics due
to replenishment.

Granular Portfolio
The size of the largest obligor group is limited to 0.5% of the
total portfolio.  The largest 10 obligor groups are limited to 4%
of the total portfolio in aggregate.

Rapid Deleveraging
Fitch expects the portfolio to be made up mostly of unsecured
loans, for which the remaining time to maturity is limited to
seven years by the eligibility criteria.  Fitch therefore expects
the overall weighted average life (WAL) of the portfolio to be
less than four years at the end of the replenishment period.

Set-Off and Commingling Risk
The transaction features a set-off reserve, which partially
covers set-off exposure.  Fitch estimates the set-off exposure
not covered by the reserve to be 4.1% of the initial portfolio.
Additionally, Fitch estimates the commingling exposure at 5.6% of
the initial portfolio balance.  The large commingling exposure is
driven by the clustering of loan payment dates on the last day of
June and December each year as a result of the originator's
underwriting practices.

Sovereign Rating Cap
The class A notes are capped at 'AA+sf' with a Negative Outlook,
driven by sovereign dependency, in accordance with Fitch's
Criteria for Sovereign Risk in Developed Markets for Structured
Finance and Covered Bonds.

                       RATING SENSITIVITIES

An increase of 25% in the default probabilities assigned to each
obligor or a reduction of 25% in expected recovery rates would
lead to a downgrade of one notch for the rated notes.

                           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.

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 asset pool information relied
upon for the agency's rating analysis according to its applicable
rating methodologies indicates that it is adequately reliable.


KAZAKHTELECOM: S&P Affirms 'BB' CCR & Revises Outlook to Positive
S&P Global Ratings revised its outlook on Kazakhstan-based
telecommunications operator Kazakhtelecom JSC to positive from

At the same time, S&P affirmed its 'BB' long-term foreign and
local currency corporate credit ratings and the 'kzA+' Kazakhstan
national scale rating.

S&P has also affirmed its 'BB' and 'kzA+' issue ratings on the
group's Kazakhstani tenge (KZT) 45.5 billion senior unsecured

The outlook revision reflects Kazakhtelecom's strengthening
credit metrics, particularly S&P's expectation that S&P Global
Ratings-adjusted debt to EBITDA will decline below 1.0x in 2016-
2018.  S&P also takes into account Kazakhtelecom's solid balance
sheet, with a large balance of cash and deposits at around KZT53
billion at end-June 2016, and S&P's expectation that it will
increase, supported by strongly positive free operating cash flow
(FOCF). Although S&P is mindful of the general weakness of the
Kazakh banking system, it considers that the structure of cash
and deposits is well-diversified and that Kazakhtelecom has a
track record of easily accessing cash in previous years.
Importantly, a significant part of Kazakhtelecom's cash and
deposit is held in foreign currency (U.S. dollars), which
mitigates the currency risk related to the group's notes that are
linked to the dollar.  S&P's adjusted debt calculation of KZT52.5
billion at year-end 2016 mainly consists of KZT27.4 billion
senior unsecured notes due in 2019, around KZT27.6 billion of
amortizing debt fully guaranteed by Samruk-Kazyna, the parent
company of Kazakhtelecom, finance leases, and guarantees of the
new debt raised by the mobile joint venture between the group and
Tele2, adjusted by surplus cash.

In S&P's analysis, it factors in that in 2019 Kazakhtelecom will
face a put option on its 49% stake in the mobile joint venture,
which S&P currently values at the amount of the shareholder loans
contributed by Tele2.  At the time the joint venture was created,
the value equaled KZT97 billion, but S&P understands that the
value may change.  S&P expects that the group's adjusted leverage
(debt to EBITDA) could increase in 2019 but still remain at or
below 1.5x.

S&P's assessment of Kazakhtelecom's business risk profile remains
constrained by the group's exposure to country risk in
Kazakhstan. All group assets are located there, and S&P assess
the country risk as high.  S&P also factors in its exposure to
fixed-line voice business, which is declining due to fixed-to-
mobile substitution, and pressure on Kazakhtelecom's public
policy role, requiring it at times to invest in projects with low
profitability or long payback periods.  S&P also considers that
Kazakhtelecom no longer directly owns any mobile assets following
the creation of the joint venture with Tele2.

These weaknesses are partly offset by the group's dominant
incumbent position in the fixed-line telephony market in
Kazakhstan.  In many areas of the country, it is the sole
provider of fixed-line telecom services.  This market has minimal
competition, which enables Kazakhtelecom to derive growth from
increasing broadband penetration and compensate for the declining
usage of fixed-line voice services.

"In our analysis, we anticipate that Kazakhtelecom will face
continued margin pressure in 2016-2017, partly because of the
impact of the weaker tenge.  We expect an adjusted margin of
about 33% in 2016-2017, as compared with around 38% in 2015.
That said, we expect that Kazakhtelecom will generate
approximately 5% organic revenue growth (excluding the mobile
segment) in 2016, primarily on interconnect services, line
rentals, data transfer, and pay-TV services.  That said, we
expect that fixed-line services which account for about 20% of
total revenues, will gradually decrease as a result of fixed-to-
mobile substitution.  We expect that in 2017, Kazakhtelecom's
revenues will increase only marginally, with declining fixed-line
revenues offset by other segments," S&P said.

S&P's rating on Kazakhtelecom also reflects its negative
financial policy assessment and some uncertainty around the joint
venture. Despite the group's low debt, we think leverage could
increase, given management's leverage target of below 2.0x,
calculated as gross debt to EBITDA, and the existing dividend
payout policy, at between 15% and 100% of the previous year's net
income.  That said, the financial policy could change in the
event of an IPO, although there is uncertainty around the
timeline.  The joint venture is in an active growth phase, which
we think may require further investment.  Although we do not
expect that Kazakhtelecom will need to contribute additional
funds, we see some uncertainty about the joint venture's long-
term ability to generate positive FOCF," S&P said.

The positive outlook reflects the possibility that S&P could
raise its rating on Kazakhtelecom in the next 12 months, if
adjusted debt to EBITDA remains consistently below 1.5x while the
joint venture's operating performance gradually improves.

An upgrade would rely on adjusted debt to EBITDA below 1.5x, even
factoring in the exercise of the option on the Tele2 stake in the
joint venture in 2019.  Achieving this ratio will depend on both
Kazakhtelecom's and the joint venture's operating performance.

S&P could revise the outlook to stable if Kazakhtelecom's
leverage were to increase above 1.5x, as a result of a negative
impact from the joint venture or high dividend distribution.


DRYDEN 46 EURO: S&P Assigns B- Rating to Class F Notes
S&P Global Ratings has assigned its credit ratings to Dryden 46
Euro CLO 2016 B.V.'s class A-1, A-2, B-1, B-2, C, D, E, and F
notes.  At closing, Dryden 46 Euro CLO 2016 also issued an
unrated subordinated class of notes.

The ratings assigned to Dryden 46 Euro CLO 2016's notes reflect
S&P's assessment of:

   -- The diversified collateral pool, which consists primarily
      of broadly syndicated speculative-grade senior secured term
      loans and bonds that are governed by collateral quality and
      portfolio profile tests.  The credit enhancement provided
      through the subordination of cash flows, excess spread, and

   -- The collateral manager's experienced team, which can affect
      the performance of the rated notes through collateral
      selection, ongoing portfolio management, and trading.  The
      transaction's legal structure, which in S&P's view is
      bankruptcy remote.

S&P considers that the transaction's documented counterparty
replacement and remedy mechanisms adequately mitigate its
exposure to counterparty risk under our current counterparty

Following the application of S&P's structured finance ratings
above the sovereign criteria, S&P considers the transaction's
exposure to country risk to be limited at the assigned rating
levels, as the exposure to individual sovereigns does not exceed
the diversification thresholds outlined in S&P's criteria.

S&P considers the transaction's legal structure to be bankruptcy
remote, in line with its European legal criteria.

Following S&P's analysis of the credit, cash flow, counterparty,
operational, and legal risks, S&P believes its ratings are
commensurate with the available credit enhancement for each class
of notes.

Dryden 46 Euro CLO 2016 is a broadly syndicated collateralized
loan obligation (CLO) managed by PGIM Ltd., which is the
principal asset management business of Prudential Financial, Inc.
This is PGIM's second CLO to date in 2016, following Dryden 44
Euro CLO 2015 B.V., which closed in June 2016.


Ratings Assigned

Dryden 46 Euro CLO 2016 B.V.
EUR471.18 Million Secured Floating- And Fixed-Rate Notes
(Including Subordinated Notes)

Class              Rating         Amount
                                (mil. EUR)

A-1                AAA (sf)       236.50
A-2                AAA (sf)        33.50
B-1                AA (sf)         44.51
B-2                AA (sf)         12.87
C                  A (sf)          25.43
D                  BBB (sf)        24.08
E                  BB (sf)         26.90
F                  B- (sf)         13.28
Sub                NR              54.11

NR--Not rated.


CARPATICA ASIG: Court Rejects Bankruptcy Ruling Appeal
The Bucharest Court of Appeal rejected, on October 26, 2016, the
appeal filed by Carpatica Asig S.A. to suspend the effects of the
Decision no. 1498/27.07.2016 issued by the Financial Supervisory
Authority (ASF).  Through the respective decision, ASF ordered
the end of the financial recovery procedure based on recovery
plan, setting the state of insolvency, triggering the bankruptcy
proceedings and withdrawing the operating authorization of S.C.
Carpatica Asig S.A.

The decision of the Court of Appeal is not final, the company
being entitled to appeal within five days from the notification
of the sentence.

The Board of the Financial Supervisory Authority decided, in the
meeting held on July 27, 2016, to withdraw the operating
authorization of Carpatica Asig S.A. and promote the request to
trigger bankruptcy proceedings, under Law no. 503/2004
(republished) and Law no. 85/2014.  The Decision of ASF Board was
based on conclusions of Financial Audit Report for 2015 prepared
by Mazars, in conjunction with the Evaluation Report prepared by
Deloitte, as well as the Report on fulfillment by the
Policyholders Guarantee Fund (FGA) of the mandate of temporary

                         About ASF

ASF -- -- is the national authority,
established in 2013 under GEO 93/2012 approved by Law 113/2013,
for the regulation and supervision of insurance, private pensions
and capital markets.  ASF contributes to consolidating the
integrated framework of operation of the three sectors, totaling
over 10 million participants.

                      About Carpatica Asig

Carpatica Asig was the seventh biggest insurer in Romania, in
2015, with gross premiums underwritten of over EUR130 million and
a market share of 6.7%.  The company was one of the leaders on
the mandatory car insurance (RCA) segment, according to Romania


IG SEISMIC: Moody's Confirms B3 Corporate Family Rating
Moody's Investors Service has confirmed the B3 corporate family
rating (CFR) of IG Seismic Services Plc (IGSS), the leading
seismic services company in Russia. Concurrently, the probability
of default rating (PDR) was confirmed at B3-PD and an /LD
indicator was assigned. The outlook on all the ratings is
negative. This action concludes the rating review initiated by
Moody's on September 16, 2016.

The /LD designation reflects Moody's view that the recent bond
exchange constitutes a distressed exchange under Moody's
definition of default. Moody's will remove the /LD designation
from the PDR in two business days.


Today's confirmation reflects the recently announced refinancing
of IGSS's RUB3 billion bond due in 2018 via the exchange for an
amortising RUB3 billion bond maturing in October 2019. The bond
exchange allowed the company to successfully remove the risks
related to the put option on the existing bond that could be
exercised as of 24 October 2016.

However, the company's liquidity profile still remains fairly
weak, given the negative free cash flow expected in 2016-17 and
substantial debt service requirements, which will require
additional financing in 2017. At the same time, Moody's
positively acknowledges the evidence of the company's strong
relationship with its key creditor, Bank Otkritie Financial
Corporation PJSC (Ba3 negative) and expects that it will continue
to support IGSS going forward by providing the necessary
financing. In particular, the company has recently signed a new
3-year RUB3.2 billion loans with the bank and obtained a waiver
for financial covenants under all its credit facilities until
October 2018.

The B3 rating with the negative outlook continues to reflect
Moody's expectation of a substantial weakening in IGSS's earnings
in 2016 owing to contracting demand for seismic services in
Russia amid the dramatic oil price volatility in Q1 2016.
Overall, IGSS's leverage (measured as adjusted debt/EBITDA) is
expected to rise to nearly 6.0x (4.1x in 2015) driven by negative
operating cash flow, a significant reduction in EBITDA and rising
interest expenses coupled with the step up in debt.

Despite a marginal revival in demand from Q2 2016, as oil prices
somewhat stabilised, Moody's expects that the company's
operations and financial metrics will remain weak through 2017.
Moreover, the rating agency continues to see downside risks as
the industry stays under pressure.

IGSS's B3 CFR also factors in its (1) modest scale by global
standards; and (2) exposure to Russia-related political, economic
and legal risks.

More positively, the rating takes into account (1) IGSS's
dominant position in the Russian seismic services market, which
benefits from still strong longer-term fundamentals; (2) its
significant presence in all major hydrocarbon-rich basins in
Russia and its high level of customer diversification; and (3)
the company's strategic partner, Schlumberger Ltd (A1 stable),
which supports IGSS's strong technological expertise.


The negative outlook on the ratings reflects Moody's expectation
that IGSS's operating and financial performance may further
deteriorate with adjusted debt/EBITDA increasing to above 6.0x
given that the industry remains under ongoing pressure from still
weak oil prices and potential new market shocks can't be fully
ruled out. The inability to successfully refinance the upcoming
debt maturities or any other signs of limited access to new
funding may also put renewed pressure on IGSS's ratings.


A rating downgrade could be triggered by (1) any further negative
developments in the company's operating environment and/or
business profile that leads to the deterioration of its metrics
beyond Moody's current expectations, with adjusted debt/EBITDA
above 6.0x and adjusted EBITDA/interest below 1.0x, all on a
sustained basis; and (2) any signs of deterioration of its
ability to access new funding.

Though unlikely in the near term, IGSS's rating could be upgraded
if the company is able to achieve on a sustainable basis (1)
reduced leverage measured by adjusted debt/EBITDA at or below
4.0x; (2) improved interest coverage measured as EBITDA/interest
expense at or above 2.0x; and (3) a solid liquidity profile with
comfortable near-term refinancing needs.


The principal methodology used in these ratings was Global
Oilfield Services Industry Rating Methodology published in
December 2014.

Domiciled in Cyprus and headquartered in Moscow, Russia, IG
Seismic Services Plc (IGSS) is the Russia's largest seismic
services company. The company provides high-quality seismic data
acquisition, data processing and interpretation services to a
diversified client base, and has a foothold in all major oil and
gas provinces in the country. In 2015, IGSS generated sales of
$310 million and adjusted EBITDA of approximately $82 million.

CB KUBAN UNIVERSAL: Put on Provisional Administration
The Bank of Russia, by its Order No. OD-3673, dated October 27,
2016, revoked the banking license of Krasnodar-based credit
institution Commercial Bank Kuban Universal Bank, LLC from
October 27, 2016, according to the press service of the Central
Bank of Russia.  On revocation of banking license and appointment
of provisional administration of Kuban Universal Bank.

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,
and application of measures envisaged by the Federal Law "On the
Central Bank of the Russian Federation (Bank of Russia)",
considering a real threat to the bank's creditors and depositors.

CB Kuban Universal Bank LLC invested funds in low-quality assets
and did not create loss provisions adequate to the risks assumed.
Adequate assessment of the risks assumed as required by the
supervisor and fair presentation of the bank's assets resulted in
the reasons for implementing insolvency (bankruptcy) prevention
measures by the credit institution.  The bank management and
owners did not take required measures to normalize its
activities.  Under the circumstances the Bank of Russia took a
decision to take out CB Kuban Universal Bank LLC from the banking
services market.

The Bank of Russia, by its Order No. OD-3674, dated October 27,
2016, appointed a provisional administration of CB Kuban
Universal Bank LLC 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

CB Kuban Universal Bank LLC 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 provides for the payment of indemnities to
the bank's depositors, including individual entrepreneurs, in the
amount of 100% of the balance of funds but no more than 1.4
million rubles per depositor.

According to the financial statements, as of October 1, 2016, CB
Kuban Universal Bank LLC ranked 377th by assets in the banking
system of the Russian Federation.

MOSCOW UNITED: Fitch Affirms 'BB+' IDR, Outlook Stable
Fitch Ratings has affirmed PJSC Moscow United Electric Grid
Company's (MOESK) Long-Term foreign-currency Issuer Default
Rating at 'BB+' with a Stable Outlook.

MOESK's Long-Term IDR reflects the company's solid business
profile supported by its regulated electricity distribution
business in the relatively wealthy city of Moscow and the wider
Moscow region.  Although below-inflation tariff growth and
increased dividend pay-out weigh on the financial metrics, we
view the company's efforts to mitigate their impact, namely capex
cuts and controllable cost management, as sufficient for
maintaining financial profile commensurate with the rating in the
medium term.

The company's 'BB+' rating incorporates one-notch uplift for
parental support from its majority shareholder, PJSC ROSSETI, and
ultimately the Russian state (BBB-/Stable).

                        KEY RATING DRIVERS

High Tariff Uncertainty

Although long-term regulatory asset base (RAB) regulation was
formally introduced in 2011, and the key regulatory parameters
were set for 2012-2017, the RAB regulation for MOESK continues to
be implemented in a managed way.  Tariff increases remain
unpredictable, particularly during periods of macroeconomic
instability.  Fitch views the short- to medium-term
unpredictability of tariff increases as one of the key rating
risks for the company.  Uncertainty of the regulatory framework
after 2017 adds to the risks.

Regulatory Decisions Drive Financials
MOESK's financial profile is significantly affected by the tariff
decisions as nearly all of its revenues and about half of its
operating costs are regulated.  Regulated costs include
electricity transmission services of Federal Grid Company
(BBB-/Stable), distribution services of the local network
companies and purchases of electricity lost in the networks.  The
pace of the regulated cost growth is therefore as important as
the tariff increase itself.

Tariff Increases Below Inflation
In 2014-2016, the company's tariff increases (net of the
regulated costs) were below the rate of inflation, which has led
to a modest decline in profitability and EBITDA.  Following a
5.6% average net tariff increase in 2016, the company expects
2017 tariffs to be raised by 3.9%, in line with the government-
forecast consumer inflation.  There will be further pressure on
profitability and free cash flow should the actual inflation rate
be higher than forecast.

MOESK partially mitigated the financial impact of insufficient
tariff increases through capex reductions in 2014-2016.  In 2015,
the company reduced its investments by 17% via postponing non-
critical capex to later periods.  A cut of 14%-16% is anticipated
in 2016.  However, even with this measure we expect MOESK's
financial profile to slightly deteriorate in 2016.

Commensurate Financial Ratios
Fitch expects the company's FFO gross adjusted leverage (net of
connection fees) to average 3.3x in 2016-2019, which is
comfortably below our downgrade guideline of 4.0x.  Average FFO
fixed-charge cover (net of connection fees) is anticipated to be
close to the negative guidance of 3.25x over 2016-2019.  This is
an improvement versus the last year's forecast of 3.0x.  The
company's financial profile is largely driven by tariff decisions
and central bank's policy rate, which in turn are reflective of
the macroeconomic situation in Russia.

Cost of Debt Normalises
MOESK's average cost of debt peaked at 10.3% in the beginning of
2016 before falling to 9.5% in September.  The decrease reflects
the company's efforts to refinance relatively expensive debt
raised in late 2014-mid 2015 with cheaper bonds and loans.  In
2016, the company refinanced its expensive RUB7 bil. 13.2% bonds
at about 10% and issued RUB5 bil. bonds at 9.7%, below the
central bank's policy rate of 10.5%.  Fitch expects a further
gradual decline in policy rates in 2017 and 2018.  Given the
company's relatively short debt maturity profile, lower policy
rates could translate into stronger fixed charge cover ratios
towards 2019.

Higher Dividends Add Pressure
In 2016, the Russian government requested state-owned entities to
pay a dividend of at least 50% of their net income as a one-off
measure.  An extension of this measure to three-year period is
being discussed. For MOESK, a step-up in the dividend pay-out
ratio to 50% from 25% adds to the free cash flow pressures.

One-Notch Uplift for Parental Support
Fitch incorporates a one-notch uplift in MOESK's 'BB+' Long-Term
IDR for implied parental support as we assess the overall
strategic, operational and, to a lesser extent, legal ties
between the company and its majority shareholder, PJSC ROSSETI
and ultimately the state, as moderately strong.


MOESK is the principal electricity distribution company in Moscow
and the wider Moscow region.  It compares well with other rated
network companies in the CIS region, Russian electricity
transmission operator FedGrid, Kazakhstan's electricity
transmission operator KEGOC based on operational metrics.  Peers
are also subjects to the regulatory uncertainties and low
visibility over medium-term tariff increases, while their
investment programmes are sizeable.  MOESK's FFO-based leverage
is similar to that of rated peers, varying historically between
2.0x and 3.0x.

                          KEY ASSUMPTIONS

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

   -- Average "common pot" tariffs increase at CAGR of 4.4% a
      year during 2017-2019.
   -- Electricity distribution volumes grow in line with Russian
      GDP, on average 1.2% a year in 2017-2019.
   -- Average consumer price inflation of 6.2% in 2016-2019.
   -- Controllable costs grow slightly below inflation, at CAGR
      4.8% a year during 2017-2019.
   -- Non-controllable costs grow above MOESK tariff growth, at
      CAGR 8.6% a year during 2017-2019.
   -- Average annual capex of RUB37.5bn (excluding VAT) in 2016-
   -- Average cost of new borrowings of 10.5% in 2016, 9.5% in
      2017 and 8.5% thereafter.
   -- Dividend pay-out at 50% of net profit.

                        RATING SENSITIVITIES

Positive: Developments that may, individually or collectively,
lead to positive rating action include:

   -- Improvement of the Russian regulatory framework for
      electricity distribution and record of its stability and

   -- Evidence that the company can maintain FFO gross adjusted
      leverage (excluding connection fees) well below 3.0x and
      FFO fixed charge cover (excluding connection fees) above
      4.5x on a sustained basis would be positive for the
      standalone rating.

Negative: Developments that may, individually or collectively,
lead to negative rating action include:

   -- Significant deterioration of the credit metrics on a
      sustained basis (FFO gross adjusted leverage (excluding
      connection fees) above 4.0x and FFO fixed-charge cover
      (excluding connection fees) below 3.25x) due to, for
      example, low tariff growth, insufficient to cover
      inflationary cost increases, not compensated by capex cuts.

   -- Material adverse changes to the regulatory framework,
      especially from 2017.

   -- Weaker links with the parent and ultimately the state.


MOESK's liquidity is satisfactory with RUB48.4 bil. of available
long-term credit lines maturing in 2016-2021 and RUB0.2 bil. of
cash and cash equivalents at end-September 2016 sufficient to
cover short-term debt maturities of RUB12 bil. and Fitch-
projected negative free cash flow of RUB11.1bn. MOESK does not
pay commitment fees for its credit lines, which is common
practice in Russia.  The core lending group consists of major
Russian state-owned banks and we do not anticipate difficulties
in drawing down liquidity.

The company's average weighted maturity of debt improved to 3.2
years at September 2016 from 2.5 years last year.  Fitch
forecasts MOESK to remain free cash flow negative over 2016-2019
and expect the company to rely on external funding for debt


JSC Moscow United Electric Grid Company
  Long-Term foreign-currency IDR: affirmed at 'BB+'; Outlook
  Short-Term foreign-currency IDR: affirmed at 'B'
  Long-Term local-currency IDR: affirmed at 'BB+'; Outlook Stable
  National Long-Term Rating: affirmed at 'AA(rus)'; Outlook
  Local currency senior unsecured rating affirmed at 'BB+'
  National senior unsecured rating: affirmed at 'AA(rus)'

RUSSIAN HELICOPTERS: Fitch Raises LT IDR to 'BB+', Outlook Stable
Fitch Ratings has upgraded Russian Helicopters JSC's (RH)
Long-Term Issuer Default Rating to 'BB+' from 'BB' and affirmed
the Short-Term IDR at 'B'.  The Outlook on the Long-Term IDR is

The upgrade reflects Fitch's views that the recent improvement in
the company's funds from operations (FFO), whilst essentially
caused by the depreciation of the rouble, will probably lead to a
sustainably improved financial profile with key financial ratios
remaining at a level commensurate with new rating.  Fitch
believes that the company has achieved a structural improvement
in its pricing and cost structure and is well placed to apply
future expected strong free cash flow (FCF) towards debt

In line with Fitch's parent-subsidiary linkage methodology, the
ratings incorporate a one-notch uplift for support for the
company from its ultimate parent, the Russian Federation (BBB-

                       KEY RATING DRIVERS

State Support
Russian Helicopters JSC' (RH) IDR benefits from a one-notch
uplift from the standalone rating of 'BB', based on the support
given to the company by the Russian state.  Any change to the
nature of that support, whether real or perceived, could have a
rating impact.

Average Business Profile
RH has a strong market position, with a globally dominant role in
certain segments, such as attack and heavy-lift helicopters.
These are high-priced items on which RH can generate robust
returns thanks to efficient production and low labour costs.
Nevertheless, RH is only strong in certain types of helicopter
segments (although these constitute a significant share of the
global market), remains heavily reliant on the Russian Ministry
of Defence for much of its business, and its service business is

Mixed Financial Profile
RH's financial profile, on balance, is indicative of a 'BB'
category industrial company.  The significant depreciation of the
rouble aagainst the USD since 2014 has had the effect of lifting
earnings and FFO margins, as well as the free cash-flow (FCF)
generation and leverage to levels which are better than industry
peers.  Although these ratios are likely to at least partially
deteriorate in the medium to long term as the positive effect of
the rouble depreciation wears off, they should remain in line
with the new rating.

RH's FFO margin was 16.5% for the last 12 months (LTM) to June
30, 2016, down slightly from the 21% achieved in 2014 and 17.3%
in 2015 as a result of the somewhat higher input and operating
costs. Its LTM 1H16 FCF margin was strong at 6.5% as a result of
working-capital inflows in 1H16, and is likely to remain positive
in FY16 and stay above 5% of revenue in the medium term as a
result of working-capital inflows as well as declining capex and
development costs.

Improved Leverage
The company's debt levels, at RUB92 bil. at end-1H16, are lower
than the end-2015 peak of RUB120 bil.  The relative stability in
FFO resulted in FFO gross leverage improved to under 2x, from
2.6x at end-2015.  Fitch Ratings expects leverage to stabilize at
around 2x - 2.5x from end-2016 onwards as the effect of the sharp
swings in the rouble valuation subside.

                         DERIVATION SUMMARY

The company continues to exhibit many characteristics expected of
a 'BB' category CIS-based company like a strong market position,
long-term history of innovation, a relatively good backlog and a
large captive customer/shareholder committed to supporting the
company not only through long-term contracts but other tangible

Historically, the group has displayed high leverage levels,
volatile free cash flows as a result of high investment needs and
only moderate financial flexibility.  It has achieved a material
improvement in its results since 2014, but the primary cause of
this was the fall in the rouble against the dollar.  Fitch do not
expect the high margins achieved in 2014 and 2015 to become a
permanent/long-term feature of the financial profile, although
Fitch do expect margins will remain higher than pre-2014 and
relatively strong through the medium term for the 'BB' rating.


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

   -- Helicopter deliveries to be slightly down in 2016 and
      decline marginally each year thereafter
   -- Gross and EBIT margin gradually decline but remain above
      historical average in the long term as the currency effect
      of 2014/15 is only somewhat smoothed out via changes in
      pricing and operating costs
   -- The benefit from present restructuring measures will also
      have some positive effect on margins in the short to medium
   -- Working-capital cash flows to turn positive from 2016 owing
      to the decline in production/deliveries
   -- Capitalized development costs to continue to decline from
      their peak in 2014 but remain relatively high
   -- Tangible capex to also decline gradually from its 2015 peak
   -- Dividends to rise steadily in line with profits

                      RATING SENSITIVITIES

Positive: Future developments that could lead to positive rating
actions include:

   -- Evidence of a greater state support, for example, in the
      form of state guarantees for external debt issued by non-
      state controlled banks.

   -- Improvement in the business profile, including greater
      diversification, reduced dependence on the Russian Ministry
      of Defence (MoD) and a higher portion of service revenues.

   -- FCF margin in mid-single digits on a sustained basis.

   -- A visible and sustainable increase in the order backlog

   -- Improvement in the liquidity position with adjusted cash
      levels and committed bank lines significantly in excess of
      short term debt maturities.

Negative: Future developments that could lead to negative rating
action include:

   -- A visible reduction in state support.
   -- CFO margin declining below 10% on a sustained basis.
   -- FFO-adjusted gross leverage consistently above 3x.
   -- FCF margin below 2% on a sustainable basis.
   -- Worsening of the company's liquidity


Adequate Liquidity: RH's liquidity position remains adequate
although somewhat vulnerable.  At end-1H16, the group had
reported cash of RUB47.9 bil. on its balance sheet against short-
term debt of RUB27.4 bil. which is broadly in line with
historical levels. Approximately 60% of the cash is held in US
dollars, with the rest in roubles.  The issue of long-term bonds
in 2013 has improved the balance of short- to long-term debt
somewhat, although the company remains reliant on regular
refinancing of maturing debt.  High investment needs as well as
possible large working-capital swings mean that FCF was negative
in three of the past five years, although it is likely to be
positive in the short to medium term.


Russian Helicopters JSC

   -- International foreign currency Long-term IDR upgraded to
      'BB+' from 'BB'; Outlook Stable';
   -- International foreign currency Short-term IDR affirmed at
   -- International local currency Long-term IDR upgraded to
      'BB+' from 'BB'; Outlook Stable;
   -- National Long-term rating upgraded to 'AA(rus)' from
      'AA-(rus)'; Outlook Stable';
   -- National Short-term rating affirmed at 'F1+(rus)';

U N I T E D   K I N G D O M

BRACKEN MIDCO1: Fitch Assigns 'B+' IDR, Outlook Stable
Fitch Ratings has assigned Bracken MidCo1 plc a Long-Term Issuer
Default Rating of 'B+' with Stable Outlook, and its subordinated
senior PIK toggle notes an expected rating of 'B-(EXP)'.

At the same time the agency has affirmed the IDRs of Jerrold
Holdings Limited (JHL) at 'BB-' with Stable Outlook, and the
senior secured debt rating of subsidiary Jerrold FinCo plc at

The final rating of the senior PIK toggle notes is contingent on
the receipt of final documents conforming to information already

JHL is a UK specialist mortgage provider, offering both retail
and commercial loans to niche market segments under-served by
mainstream lenders.  In connection with the buyout of JHL's
minority shareholders by the principal owner, MidCo1 is being
established as a new holding company above JHL, and issuing
GBP220 mil. of senior PIK toggle notes as part of the finance the
buyout.  The notes allow interest to be deferred in the event
that MidCo1 lacks the necessary resources at the time to service
it, but require payment if conditions pre-defined in the notes
documentation are satisfied.

Additional buyout funding will come from the issuance by further
new companies above MidCo1 of GBP100m junior PIK notes and a new
GBP43m shareholder loan, the latter partially replacing GBP60m of
shareholder subordinated debt previously issued by JHL.

                         KEY RATING DRIVERS


JHL continues to perform soundly, reporting a record pre-tax
profit of GBP90.3 mil. for the year to June 30, 2016.  Earnings
are underpinned by the group's franchise and pricing power in
areas such as second-charge mortgages and bridging finance, and
risk is well-remunerated via wide margins.

Funding is wholesale market-focused, but diversified within that
between two securitisation programmes, the group's senior secured
notes and a revolving credit facility.  Within the GBP1.66 bil.
total wholesale funding only GBP29 mil. matures before August
2018.  In recent periods asset growth has been rapid, but the
impact on leverage has been contained by concurrent strong
internal capital generation, as JHL has not paid dividends.

Fitch is of the view that MidCo1's senior PIK toggle notes will
implicitly represent an additional obligation of JHL, as MidCo1
has no separate financial resources of its own with which to
service them, and failure to do so would have considerable
negative implications for JHL's creditworthiness.  Therefore
Fitch will in future consolidate the senior PIK toggle notes when
assessing JHL's gearing, increasing the ratio of debt-to-tangible
equity (inclusive of subordinated shareholder loan) from 2.1x per
figures reported at June 30, 2016, to 4.3x if the GBP220m of
additional funding is added to debt and deducted from tangible

Conversely, Fitch will exclude the junior PIK notes when
calculating JHL's leverage, in the light of their deeper
structural and contractual subordination, and non-cash payment

The Stable Outlook on JHL's Long-Term IDR reflects Fitch's view
that JHL should continue to report adequate profitability without
substantially increasing leverage further.

JHL's implicit obligation to service the coupon on the MidCo1
senior PIK toggle notes will require associated dividend payments
by JHL in the next five years.  However, Fitch expects implied
interest coverage (JHL's net income divided by the senior PIK
toggle notes' interest service requirement) to remain fairly
comfortable (above 3x), and JHL not to make distributions beyond
those needed to fund the MidCo1 senior PIK toggle notes debt
service, which should limit the pressure on JHL's internal
capital generation.

Other rating factors, notably JHL's risk appetite and
underwriting standards, remain unaffected by the proposed
transaction and continue to support the 'BB-' Long-Term IDR.

MidCo1's Long-Term IDR is notched off once from JHL's Long-Term
IDR, reflecting the former's structural subordination and double
leverage, which is expected to be close to 250%.  Fitch has
limited the rating differential between the two companies to one
notch, primarily because of the sizeable headroom within JHL's
restricted payment basket under the terms of the senior secured
notes (50% of post-June 2013 accumulated net income, equivalent
to around GBP85m at end-June 2016).

The notching between MidCo1's IDR and the rating of the senior
PIK toggle notes themselves reflects Fitch's view of the likely
recoveries in the event of MidCo1 defaulting.  While sensitive to
a number of assumptions, this scenario would only be likely to
occur in a situation where JHL is also in much weakened financial
condition, as otherwise its upstreaming of dividends for MidCo1
debt service would have been maintained.  The subordinated rank
of the senior PIK toggle notes would then place their holders in
a weaker position than JHL's senior secured creditors for
available recoveries from the group's assets.

                        RATING SENSITIVITIES


Near-term upside for JHL's ratings is limited by the additional
debt now being taken on at MidCo1, which diminishes rating
headroom.  A significant further increase in leverage, or
worsening profitability, for instance due to a deteriorating
operating environment adversely affecting asset quality, could
lead to a downgrade.


MidCo1's Long-Term IDR is primarily sensitive to changes to JHL's
Long-Term IDR.  Equalisation of the IDRs is unlikely in view of
MidCo1's structural subordination, but a weakening of implied
interest coverage within MidCo1, for instance as a result of
diminishing net income at JHL or any other restrictions on JHL's
dividend upstream capacity, could widen their notching and so be
negative for MidCo1's Long-Term IDR.

The rating of the senior PIK toggle notes is sensitive primarily
to changes to MidCo1's IDR, from which it is notched, as well as
to Fitch's assumptions regarding recoveries in a default
scenario. Lower asset encumbrance by senior secured creditors
could lead to higher recovery assumptions and therefore narrower
notching from MidCo1's IDR.

The rating actions are:

Bracken MidCo1 plc
  Long-Term IDR assigned at 'B+'; Outlook Stable
  Senior PIK toggle notes rating assigned at 'B-(EXP)'/
   Recovery Rating 'RR6'

Jerrold Holdings Ltd
  Long-Term IDR affirmed at 'BB-'; Outlook Stable
  Short-Term IDR affirmed at 'B'

Jerrold FinCo Plc
  Senior secured debt rating affirmed at 'BB-'

CLAVIS SECURITIES 2006-01: Fitch Puts BB Rating on Watch Neg.
Fitch Ratings has placed Clavis Securities plc Series 2006-01
(Clavis 06) on Rating Watch Negative (RWN).

The transaction contains a pool of residential mortgages
originated by GMAC-RFC Limited, a non-conforming mortgage lender.

                        KEY RATING DRIVERS

The class A3a and A3b notes have a legal final maturity date in
December 2031 while the other rated notes have a legal final
maturity date in December 2039.  As of August 2016 the portfolio
contained 21 loans equal to approximately 5% of the current pool
balance, with a scheduled maturity date beyond that of the class
A3a and A3b notes.

The transaction is currently amortising on a pro-rata basis and
will switch to sequential upon the breach of certain performance
based triggers.  However, in its base case scenario Fitch expects
that pro-rata amortisation will continue until the legal final
maturity date of the class A3a and A3b notes.

In Fitch's opinion the earlier legal final maturity date of the
class A3a and A3b notes, combined with the ongoing pro-rata
amortisation, exposes the class A3a and A3b noteholders to the
risk that they will not be paid in full by the legal final
maturity date under the scenario of benign asset performance.
For example, in the event of base case defaults and annual
prepayments of 10% a small amount of the class A3a and A3b notes
are expected to remain outstanding at the legal final maturity

Although any outstanding class A3a and A3b note balance would be
expected to be recoverable, and modest in relation to the current
note balance, such an event would constitute a default for
ratings of the class A3a and A3b notes and may give risk to an
event of default under the transaction documentation.
Consequently Fitch has placed all note rating on Rating Watch

Fitch will conduct further analysis including consideration of
different prepayment scenarios and other assumptions.  Fitch
expects to resolve the RWN within one month.

                      RATING SENSITIVITIES

Fitch will conduct further analysis to determine the appropriate
rating action.  Once this process has been completed, it may lead
to the note ratings being downgraded.


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

Fitch did not undertake a review of the information provided
about the underlying asset pool ahead of the transaction's
initial closing.  The subsequent performance of the transaction
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.

Fitch has taken this action:

Clavis Securities plc Series 2006-01
  Class A3a ISIN(XS0255457706); 'AAAsf'; on RWN
  Class A3b ISIN(XS0255438748); 'AAAsf'; on RWN
  Class M1a ISIN(XS0255424441); 'AA+sf'; on RWN
  Class M1b ISIN(XS0255439043); 'AA+sf'; on RWN
  Class M2a ISIN(XS0255425414); 'Asf'; on RWN
  Class B1a ISIN(XS0255425927); 'BBBsf'; on RWN
  Class B1b ISIN(XS0255440728); 'BBBsf'; on RWN
  Class B2a ISIN(XS0255426818); 'BBsf'; on RWN

EXPRO HOLDINGS: S&P Lowers Corporate Credit Rating to 'SD'
S&P Global Ratings' lowered its long-term corporate credit rating
on U.K.-based oilfield services company Expro Holdings U.K. 3
Ltd. (Expro) to 'SD' (selective default) from 'CCC+'.

At the same time, S&P lowered its issue rating on Expro's
mezzanine facility to 'D' (default) from 'CCC'.  The recovery
rating remains unchanged at '5', indicating S&P's expectation of
recovery prospects in the lower half of the 10%-30% range.

S&P also affirmed its 'B-' issue ratings on Expro's $175 million
revolving credit facility (RCF) and $1.3 billion term loan.  The
recovery rating on these facilities is unchanged at '2',
indicating S&P's expectation of recovery in the lower half of the
70%-90% range.

The downgrade follows Expro's recent announcement that about 98%
of the holders of its $800 million outstanding mezzanine facility
exchanged their debt for equity.  In S&P's view, the meaningful
conversion is tantamount to a default.

In this assessment S&P takes into consideration:

   -- S&P's view of the company's rating prior to the transaction
      (in S&P's 'CCC' category) and the very challenging market
      environment the company continues to operate in.

   -- S&P's view that the noteholders are obtaining less than the
      originally promised amount.  This view takes into account
      the uncertain cash flows that underpin the valuation,
      compared to the defined characters of the mezzanine.

Following the transaction, the company's adjusted debt will be
about $1.4 billion, consisting of $120 million drawn under the
RCF, about $1.2 billion under the term loan, and a $16 million
mezzanine facility (held by one single investor). There are no
maturities until 2021 and Expro will not be subject to
maintenance financial covenants anymore under the mezzanine
facility.  In addition, the company's free operating cash flow
would improve by $40 million with the reduction in the interest
cash payment related to the mezzanine facility.

Under S&P's base-case, it now estimates that S&P Global Ratings'
adjusted debt to EBITDA (excluding cash) to be above 8x on
average in fiscal years 2017 and 2018 (ending March 31).

S&P understands that after the transaction, Expro will continue
to be majority owned by private equity firms.

IGAS ENERGY: Bond Waivers Take Effect, In Talks with Investors
Proactive Investors reports that IGas Energy Plc's bondholders
cast their votes on proposals put forward by the company to relax
liquidity obligations.

According to Proactive Investors, a quorate of holders of the
group's unsecured bonds (56.2% of voting bonds were represented
at the meeting) voted unanimously in favor of the proposal to
waive liquidity covenants, whereas 43% of a quorate of secured
bond holders (68.6% of holders were represented) voted in favor.

As such waivers are now effective for the unsecured bonds, but
the proposal was not approved for the company's secured bonds,
Proactive Investors notes.

IGas emphasized that it is in compliance with its liquidity
covenants at present, albeit a breach is forecast to occur this
week, Proactive Investors relates.

It told investors it had US$27.5 million of cash, and it holds
US$21.1 million of its own bonds, Proactive Investors discloses.

According to Proactive Investors, in a statement the company
said: "Notwithstanding the contractual requirements in the daily
liquidity financial covenants set out in the bond agreements, the
company therefore continues to meet, and expects to continue to
meet, its actual ordinary course financing and trading

IGas told investors that it continues to believe that a
consensual solution is possible, and it said that would be in the
interests of all stakeholders, Proactive Investors relays.

IGas also noted that it continues to pursue discussions with a
number of possible strategic investors, Proactive Investors

IGas Energy Plc is a British oil and gas explorer and developer,
producing 2,500 barrels of oil equivalent per day from over 100
sites across the country.

SOHO HOUSE: Obtains GBP40 Mil. in Fresh Funds Following Losses
James Quinn at The Daily Telegraph reports that Soho House, the
private members club business popular with celebrities and
socialites, has had an injection of GBP40 million to finance more
expansion after a year of increased operating losses.

The American billionaire Ron Burkle, whose Yucaipa group of
companies bought a 60% stake in the business, has led a GBP21.2
million equity financing round alongside fellow shareholders
Richard Caring and Nick Jones, The Daily Telegraph relates.

The group has also received a previously undeclared GBP13.8
million injection thanks to the sale of a 50% stake in its Pizza
East, Dirty Burger and Chicken Shop chain of restaurants to a
private investor last year, The Daily Telegraph notes.

In addition, it has increased its revolving credit facility with
its bank by GBP5 million to GBP30 million, The Daily Telegraph

The cash comes after Soho House's credit rating was downgraded to
junk Caa2 status by the credit rating agency Moody's in April,
The Daily Telegraph relays.

Soho House took out a further GBP40 million in costly borrowing
via a tranche of so-called "Payment in Kind" (PIK) notes, which
carry interest payments of 12% plus Libor, in October 2015, The
Daily Telegraph  recounts.

The PIK notes, repayable in October 2019, come on top of a
GBP152.5 million fundraising in 2014 designed to refinance the
group, The Daily Telegraph says.

The state of Soho House's finances are laid bare in accounts
recently filed at Companies House for SHG Acquisition (UK), Soho
House's parent company, The Daily Telegraph relates.  SHG made an
operating loss of GBP11.8 million in the year to January, after
including GBP15.6 million of depreciation and amortization costs,
down from an operating loss of GBP577,000 in the 2014 financial
year, The Daily Telegraph discloses.

TES GROUP: In Administration, Sells Consulting Business
Pat Sweet at CCH Daily reports that Jim Tucker, David Pike -- -- and Ed Boyle --
-- of KPMG have been appointed as joint administrators of a
number of companies which together make up the TES Group, which
operates in the aircraft engines sector, and have sold one
business to a US buyer in a deal securing half of the jobs at

According to CCH Daily, the business and assets of Total Engine
Support Ltd., (the group's consulting, technical services and
asset management business) have been sold to Willis Asset
Management Ltd., a subsidiary of California-based Willis Lease
Finance Corporation.  As part of the sale, 32 employees
transferred to the US company which specializes in leasing
aircraft engines, CCH Daily discloses.

The other companies in the group are TES Parts Ltd, TES Holdings
Ltd, TES Aviation Services Ltd and TES Aviation Ltd., CCH Daily
states.  In total the group, which is headquartered in Bridgend
in South Wales, employs 67 people, CCH Daily notes.  The
administrators have retained the rest of the employees not
transferred while options are explored for the remaining assets,
which comprise aircraft engines and related parts, CCH Daily

"The group has been through considerable transformation and
turnaround activity in recent months, and the company's directors
have concluded that the group's current financing structure is no
longer sustainable and therefore taken the difficult decision to
place the group into administration," CCH Daily quotes Mr. Tucker
as saying.

"The sale of the consulting business to Willis is a very good
start to the administration. It has ensured that the consulting
part of the group continues under new ownership and has
safeguarded a number of jobs."

THPA FINANCE: Fitch Affirms 'B' Rating on Class C Notes
Fitch Ratings has taken these rating actions on THPA Finance

  GBP110.7 mil. class A2 secured 7.127% fixed-rate notes due
   2024: affirmed at 'BBB'; Outlook Negative;
  GBP70 mil. class B secured 8.241% fixed-rate notes due 2028:
   affirmed at 'BB-'; Outlook Negative;
  GBP30 mil. class C secured 10% fixed-rate notes due 2031:
   affirmed at 'B'; Outlook revised to Negative from Stable.

The negative outlook on the classes A and B notes, and the
revision of the outlook on the class C notes reflect the
uncertainty in respect of the company's ability to crystallise
the cost savings.  They also reflect the risk of further falls in
revenues after the 2015 volume shock with the closure of the
Redcar steel plant, together with the limited visibility of both
business developments and UK's trade flows following the Brexit

The non-investment-grade ratings of the junior class B and C
notes reflect their deep contractual subordination and exposure
to a potential breach of the EBITDA DSCR covenant of 1.25x.  If
not cured, Fitch understands this could allow the senior
noteholders to enforce and accelerate the notes, possibly at the
expense of the junior notes.  Fitch does not expect the covenant
to be breached, but the junior class B and C notes are weakened
by the small headroom to the covenant, their low average
projected free cash flow (FCF) debt service coverage ratio (DSCR)
under Fitch's rating case of about1.0x for the class B notes and
0.9x for the class C notes and the absence of dedicated liquidity

The solid debt structure for the benefit of the senior class A
notes, typical of a UK WBS transaction, together with a stable
FCF DSCR averaging 1.3x, explains the multiple notches difference
between the class A and the junior classes.  Despite THPA's
business profile showing high concentration risk in volatile
cargo types and customers, the impact of throughput declines is
also to some extent mitigated by the flexibility to raise tariffs
and the contributions of long-term contracts to margins, together
with some barriers to entry provided by the privileged location.

ABP Finance PLC (A-/Negative) is a large, well-diversified UK
ports group with a five-year average net debt to EBITDA at about
7.2x in Fitch's rating case.  ABP's stronger business profile
explains the two-notch difference with THPA's class A rating
despite the higher leverage.  ABP's synthetic FCF DSCR
calculation shows also higher coverage over 1.6x under Fitch's
rating case.

                         KEY RATING DRIVERS

Customer Concentration, Volatile Cargo - Volume: Midrange
Tees and Hartlepool is a secondary port of call, a single site
with customer and industry concentration.  Following the closure
of the Redcar steel plant, ConocoPhillips (oil and gas export)
accounted alone for 38% of the total volumes in 2015,
exacerbating THPA's exposure to the volatile oil trade.  Fitch
expects the port to handle some additional volumes in relation to
the biomass plant project developed by MGT Teesside, once the
plant starts its operations after 2020.

The facility is well connected to the local market and the
inland, limiting the competitive exposure to other regional
facilities. However, Fitch believes the hinterland will be less
of a growth driver of traffic: the Tees valley is a low-growth
area focused on chemical and manufacturing industry, affected by
cheap supplies from emerging countries and contraction in the
global demand.  The port operates its facilities and also
receives rental income from leasing agreements.

Tariffs Flexibility, Long Leases - Price: Midrange
Tariffs are unregulated and to a varying extent linked to UK RPI.
The portion of guaranteed revenue fell in 2015 after striking off
SSI's contribution at about 10%, sustained by the property rental
business. The proportion is expected to grow slightly thanks to
the long-term lease contracted with MGT Teesside in August 2016.

Some Flexibility in Capex Funding - Infra-Renewal Risk: Midrange
The port is well maintained but some larger refurbishments were
made in 2014 and 2015 to allow the processing of a wider range of
vessels.  Capex spend was comparatively low in previous years (in
some years hardly more than covenanted min. capex was spent).
Capex are partly funded internally (FCF) but also through
external sources i.e. unsecured debt and largely by the equity
sponsor, through repayment of historical loans to shareholders.

Senior Class A Well Protected - Debt Structure: Stronger for
Class A Notes and Midrange for Class B and C notes
All classes are fully amortising, with a strong security package
(fixed and floating charges) typical for WBS with possibility to
appoint an administrative receiver.  No interest rate risk is
present.  A borrower event of default could, however, lead the
class A noteholders to enforce and accelerate at the expense of
the junior notes.  The deep contractual subordination weigh on
the ratings of the junior notes especially during a downturn,
when senior noteholders may seek alternative investments with
lower risk.

The agency notes the discrepancy between THPA's offering circular
and the legal documentation resulting in a lack of availability
of the liquidity facility for the class B and C notes.  This is
not materially prejudicial to the current ratings of the senior
class A notes and the junior class B and C notes because the
junior debt service can be deferred.  Fitch's analysis is aligned
with the transaction documentation, so any deferral of junior
debt service does not represent a payment default until the final
maturity of each respective note.  Furthermore, amortisation of
the junior notes is back ended, starting after the class A notes
have been fully redeemed.

Weak Credit Metrics for Junior Notes - Financial Analysis
The FCF DSCR profile for all classes is fairly stable under
Fitch's rating case.  The minimum between the projected median
and average FCF DSCR stands at 1.3x for class A notes, 1.0x for
class B notes and 0.9x for class C notes.  Fitch's break-even
analysis shows that class A notes is able to sustain up to an
annual decline of 4.5% in EBITDA before reaching an average FCF
DSCR of 1.0x and consequently drawing on liquidity.  Fitch's
rating case incorporates conservative free cash flow assumptions
factoring some low organic growth in both the port operations and
the conservancy business, the contribution of the long term lease
contracted with MGT Teesside from August 2016, conservative
maintenance capex projections of GBP7.5 mil. a year (indexed) and
pension deficit contributions of GBP2m a year.

                       RATING SENSITIVITIES

The ratings could be downgraded if a reduction in oil revenues or
the loss of another major customer adversely impact the
transaction's revenues, or if cost savings turn out to be
temporary.  FCF DSCR forecasts under Fitch's rating case
consistently below 1.3x at class A, 1.0x and 0.9x for class B and
C respectively could trigger further negative rating actions.

The Outlook may be revised to Stable if, absent other negative
developments, EBITDA proves to be consistently in line with
Fitch's base case.

                         SUMMARY OF CREDIT

THPA is a securitisation of the assets held, and earnings
generated, by the PD Ports group, which owns and operates the
port of Tees and Hartlepool as the statutory harbour authority on
the northeast coast of England.

Operational update
THPA's volumes have not recovered after Redcar's closure in
October 2015 and reached their lowest quarterly volume in 2Q16 at
5.8m tonnes, affected also by the unplanned maintenance of the
Norpipe system.  EBITDA margin has proved resilient thanks to the
active costs management put in place.  With permanent annual
savings of about GBP2 mil. as of June 2016, the borrower was able
to meet the financial condition of EBITDA DSCR above 1.25x,
overperforming Fitch's 2015 base case.


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
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are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
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Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than US$3 per
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like the definitive compilation of stocks that are ideal to sell
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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
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S U B S C R I P T I O N   I N F O R M A T I O N

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

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

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