TCREUR_Public/161108.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 8, 2016, Vol. 17, No. 221



KLPP INSURANCE: S&P Assigns 'B+' Financial Strength Rating

C Z E C H   R E P U B L I C

RPG BYTY: Fitch Affirms 'B+' Long-Term IDR, Outlook Stable


NASSA FINCO: Moody's Withdraws Ba2 Corporate Family Rating


MAGNOLIA MIDCO: Moody's Withdraws B1 Corporate Family Rating
STX OFFSHORE: 4 Parties Express Interest in French Unit's Stake


CORNERSTONE TITAN 2007-1: S&P Affirms D Ratings on 5 Note Classes
DEUTSCHE BANK: Fitch Puts 'BB' AT1 Notes Rating on Watch Neg.
KION GROUP: Moody's Confirms Ba1 Corporate Family Rating
RWE AG: Moody's Affirms Ba2 Sub. Hybrid Capital Securities Rating


GREECE: PM Reshuffles Cabinet, Aims to Conclude Bailout Review


ALFA BOND: Fitch Assigns 'B' Rating to USD400MM AT1 Notes


GAZ CAPITAL: Moody's Assigns Ba1 Rating to Sr. Unsecured LPNs
GAZ CAPITAL: S&P Assigns 'BB+' Rating to Proposed Issue of LPNs
GCL HOLDINGS: Moody's Affirms B2 Corporate Family Rating


OZLME BV: Moody's Assigns (P)B2 Rating to Class F Notes


CB KAMSKY: Put on Provisional Administration on November 3


* SPAIN: Number of Bankruptcies Down 22.2% in Second Quarter 2016


TURKEY REPUBLIC: S&P Affirms 'BB/B' FC Sovereign Credit Ratings

U N I T E D   K I N G D O M

ENTERPRISE INSURANCE: Liquidator Uncovers Regulatory Breaches
GALA CORAL: Fitch Affirms Then Withdraws 'B+' Long-Term IDR
KEYDATA INVESTMENT: Ford Loses Suit Against FCA Over Shutdown
SYNLAB BONDCO: Moody's Rates EUR940MM Sr. Secured Notes 'B2'
SYNLAB BONDCO: Fitch Assigns 'B+(EXP)' Rating to EUR940MM Notes



KLPP INSURANCE: S&P Assigns 'B+' Financial Strength Rating
S&P Global Ratings said that it assigned its 'B+' long-term
financial strength and counterparty credit ratings to
Cyprus-based KLPP Insurance & Reinsurance Co.  The outlook is

The ratings reflect S&P's assessments of KLPP's business risk
profile as highly vulnerable, based on its lack of a track
record, and its financial risk profile as upper adequate,
supported by strong capital and earnings.  The combination of the
financial risk and business risk assessments lead S&P to derive
an unadjusted 'bb-' anchor, S&P's starting point for assessing an
insurance company's creditworthiness.  S&P then make a one-notch
positive adjustment to the anchor to 'bb' due to its substantial
capital cushion.  The 'B+' rating is two notches lower than the
adjusted anchor because the company's management and governance
are assessed as negative rating factors according to S&P's
criteria. Adequate enterprise risk management and strong
liquidity are neutral rating factors.

Established in Cyprus in 2009 as an investment vehicle owned by
private investors, KLPP was registered as an insurance company on
Dec. 30, 2015 with the aim to provide non-life insurance and
reinsurance services outside its country of domicile.  It is
intended to operate initially as a captive-like company,
(re)insuring shareholders' industrial activities.

"We regard insurance industry and country risk for KLPP as
intermediate, reflecting the risks associated with the operating
environment in the specified markets, where we expect KLPP will
start its business.  Upon commencement of underwriting risks in
2016, the majority of the premium is likely to be direct
insurance risk and proportional facultative reinsurance,
primarily property. We expect the insurance portfolio to reflect
the owners' historical presence in the countries through other
investments, with an average intermediate insurance and industry
country risk. In our base-case scenario, we expect the gross
premium written in 2016 to be at least about US$600,000-
US$700,000 (equivalent to around EUR480,000-EUR550,000)," S&P

"We currently consider KLPP's competitive position to be weak.
We believe its ability to expand its franchise is still unproven
while its brand recognition is still limited in the targeted
markets.  With regards to our highly vulnerable assessment of
KLPP's business risk profile, we consider there is a high level
of execution risk in meeting its business plan over the next
12-24 months, while, particularly in the light of its start-up
phase, goals and strategies could be adapted and radically
changed depending on insurance projects opportunities and markets
developments," S&P noted.

S&P regards KLPP's capital and earnings as strong.  Under S&P's
risk-based capital model, the company's capital adequacy is
extremely strong, though S&P's view on capital and earnings is
limited by the modest absolute size of capital (US$285 million
own funds under Solvency II as of June 30, 2016), and the related
higher volatility and exposure to single-event insurance risks,
capital markets, or asset allocation developments.  In S&P's base
case, which includes its expectations for KLPP's growth and
earnings prospects, S&P expects that KLPP's capital adequacy over
2016-2017 will remain similar to the 2015 level, according to
S&P's risk-based capital model.

Under S&P's base-case scenario, it expects that KLPP's investment
income will drive overall profitability in 2016-2017, with net
income being positive.  S&P expects underwriting results to be
negative over the same period, pressured by limited premium
revenues, lack of underwriting track record, and start-up costs.

"We assess KLPP's risk position as high, reflecting historical
exposure to risky assets and quick potential shifts in the asset
allocation.  It also reflects exposure to foreign exchange
volatility in light of the geographically diverse business and
investments.  The company has recently shifted its investment
strategy.  We understand the average credit quality has improved
to the 'BBB' range from 'B' range and that the historical high
levels of shares and intra-group loans and exposure to the
Russian banking sector are reducing.  We regard these shifts as
positive, although our visibility on potential future shifts is
uncertain because the insurer has yet to establish track record
and its risk tolerances, while being able to quickly reallocate
its investments," S&P noted.

S&P views KLPP's financial flexibility as adequate, reflecting
S&P's view that the company's shareholders have a long-term
commitment to the company, and there is currently limited need
for further capitalization to KLPP.  S&P also expects the
dividend policy will remain capital supportive.

S&P's assessment of enterprise risk management (ERM) is adequate,
reflecting KLPP's defined risk-management culture and risk
controls.  Strategic risk planning and risk modeling are not
currently in place -- understandable in light of the current
small premium volumes -- and are unlikely to be implemented over
the next two years.  S&P considers ERM importance as low, mostly
reflecting the small size of KLPP's business going forward.

KLPP's management and governance is weak.  The company's business
model is reliant on key individuals in the company, with some
overlaps of ownership, management, and control functions.  Due to
its start-up phase, KLPP still lacks track record in effectively
implementing strategic plans and complying with risk tolerances.

The stable outlook reflects S&P's view that the company's
financial risk profile will remain at the upper adequate level in
the next 12 months as business and derived liability risks
increase, supported by a sufficient capital cushion.

A negative rating action in 12 months would largely depend on a
weakening of the company's financial risk profile.  This could
follow if:

   -- Capital adequacy dropped due to significant market risk or
      any unplanned investment in unconsolidated subsidiaries or
      as result of large underwriting losses on the new business
      undertaken; or

   -- There is significant drop in the average quality of
      invested assets to 'BB' or below, resulting from a further
     change in the investment strategy.

A positive rating action is remote within 12 months, however
would largely depend on the insurer's ability to:

   -- Build an insurance portfolio and franchise while showing
      quality of underwriting; and

   -- Effectively execute its strategic plans, reducing
      management's reliance on key persons and overlaps, in
      particular relating to management and control functions.

C Z E C H   R E P U B L I C

RPG BYTY: Fitch Affirms 'B+' Long-Term IDR, Outlook Stable
Fitch Ratings has affirmed Czech Republic-based property group
RPG Byty's Long-Term Issuer Default Rating at 'B+' with Stable

The rating reflects RPG's high geographical concentration and
small scale.  They also factor in stable rental income received
from the company's Czech residential housing portfolio,
de-regulation of rents and limited future capex requirements.
Fitch expects leverage to increase to around 48% in terms of
loan-to-value (LTV) before decreasing.  This does not include the
new CZK5.8 bil. shareholder loan.

                        KEY RATING DRIVERS

Debt Refinancing
RPG fully repaid its EUR400 mil. senior secured bond with a new
CZK13.5 bil. two-tranche senior facility maturing in 2021
(tranche-A CZK5.7 bil. and tranche-B CZK7.8 bil.) and which
benefits from a similar security package than the previous bond.
Key benefits include an extended maturity profile, lower
financial cost and the removal of the FX risk inherent to the
euro-denominated previous bond.

The company also repaid its smaller loans and removed its CZK550
mil. committed facility.  Interest hedging for the new senior
facility is yet to be finalized though.

New Shareholder Loan
As part of its acquisition of RPG, Roundhill introduced a
CZK5.8 bil. shareholder loan to RPG's capital structure,
effectively replacing part of its equity.  Fitch treats this as
equity under its methodology given its subordination.  Including
it in RPG's debt structure would increase its LTV to around 70%.

OKD Restructuring
RPG still has a meaningful exposure to OKD as around 5% of its
tenants are still employed by the mining company.  The company
was able to improve its vacancies and increase its rents over the
past few years even as OKD's workforce shrank.  Discussion with
RPG's management indicates that a phase-out of the mining company
is the most likely scenario.

Stable Rental Income
RPG's business strategy is based on delivering increased rents as
contractually agreed with tenants and tight control of operating
costs.  Rental income has grown as a result of the Czech rental
market's de-regulation in 2010.  Although the average tenure of
residents is long at 12 years, reflecting the still high average
age profile (52 years) of tenants, both have been decreasing
steadily, reflecting the growing importance of the market rent
segment.  Tenants on market rent contracts are on average 40
years old.

Strong Concentration Risk
RPG's 44,000 unit portfolio is located in the Moravia-Silesia
region with all properties situated within a 50km radius.  Rental
income and portfolio valuations are strongly linked to the local
economy.  Although local demographics are not entirely
favourable, Moravia's economic performance has been solid.
Positively, the region has attracted new sectors of activity,
such as electronics, software companies and pharmaceutical groups
but retains a strong, albeit declining, focus on the cyclical
industrial sector.

In both Ostrava and Havirov, RPG's portfolio represents over 10%
and 30% of the town's housing stock, respectively.  In addition,
Ostrava and Havirov together accounted for 62% of the portfolio
by units at end-December 2014.  However, the portfolio is
sizeable and RPG benefits from economies of scale in letting and
asset management.

                          KEY ASSUMPTIONS

   -- Flat occupancy ratio at around 90%
   -- Modest increase in rent in low single digits
   -- Capex reflecting that most of the value enhancing programme
      has already been implemented

                       RATING SENSITIVITIES

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

   -- Improved corporate governance with an established dividend
      policy, most likely through a successful IPO
   -- Improved portfolio diversification where RPG establishes a
      critical size of residential portfolio outside the Ostrava
   -- A sustainable improvement in financial metrics with LTV
      below 40%, net debt/ EBITDA below 5.0x and EBITDA net
      interest cover (NIC) ratio above 2.0x
   -- Increased liquidity on a sustained basis to a score of
      1.0x, resulting from undrawn committed debt facilities or
      increased unrestricted cash.

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

   -- Changes in documentation that would make the shareholder
      loan akin to debt
   -- Significant deterioration in vacancy rates or rise in
      tenant arrears
   -- EBITDA NIC falling below 1.5x and net debt/EBITDA rising
      above 8.0x
   -- Weaker leverage metrics (LTV above 55%) that make re-
      financing prospects for the company more difficult


While RPG has CZK2.7 bil. of cash on its balance sheet following
its refinancing, the company is likely to use most of it to cover
refinancing expenses or as dividend (or dividend-like).  Moreover
with the cancellation of its CZK550 mil. committed facility the
company now only has CZK250m of potential additional debt
(uncommitted) under the new senior facility.  Overall with no
large maturity before 2021 (only a small amortization of its
tranche A) and flexible capex, liquidity needs are covered.


NASSA FINCO: Moody's Withdraws Ba2 Corporate Family Rating
Moody's Investors Service, ("Moody's") has withdrawn Nassa Finco
AS' (Nets or the company) Ba2 corporate family rating (CFR) and
Ba2-PD probability of default rating (PDR). At the time of
withdrawal, all the aforementioned ratings carried a stable


Moody's has withdrawn the rating for its own business reasons.

Headquartered in Copenhagen, Denmark, Nets is the largest pan-
Nordic payments processor focusing on Norway, Denmark, and
Finland, and second largest in Europe. Nets generated net
revenues of DKK6,836 million and EBITDA of DKK2,248 million (as
reported by the company) in 2015. Nets splits its activities
between three divisions: Merchant Services (27% of 2015 net
revenues), Financial & Network Services (32%), and Corporate
Services (41%).


MAGNOLIA MIDCO: Moody's Withdraws B1 Corporate Family Rating
Moody's Investors Service, ("Moody's") has withdrawn Magnolia
(BC) Midco S.a.r.l's (Maisons du Monde or the company) B1
corporate family rating (CFR) and Ba3-PD probability of default
rating (PDR). At the time of withdrawal, all the aforementioned
ratings carried a stable outlook.


Moody's has withdrawn the rating for its own business reasons.

Maisons du Monde is the ultimate parent company of Maisons du
Monde S.A.S. Headquartered in Nantes, France, Maisons du Monde
France S.A.S. is a French home decoration and furniture retailer.
The Group's product offering is divided into two main categories:
decorative products and furniture. Maisons du Monde recorded
revenues of EUR723 million in fiscal year ending (FYE) 31
December 2015. The company is predominantly active in France,
where it held 193 stores. It also operates in Italy (30 stores),
Belgium and Luxembourg (16 stores), Spain (12 stores), Germany (8
stores), which is its second-largest market in terms of internet
sales, and Switzerland (3 stores).

STX OFFSHORE: 4 Parties Express Interest in French Unit's Stake
Joyce Lee at Reuters reports that four parties have expressed
interest in buying one or both of South Korea's STX Offshore &
Shipbuilding Co Ltd. and a controlling stake in STX France SA, a
spokesman for the Seoul court overseeing STX Offshore's
receivership said on Nov. 4.

The Seoul Central District Court spokesman declined to comment on
the names of the parties, Reuters notes.

The South Korean court in October decided to allow the two units
of the collapsed STX shipbuilding group to be sold either
separately or together, Reuters recounts.

Initial bids were due on Nov. 4 for all of STX Offshore &
Shipbuilding Co Ltd. and a 66.7% stake in STX France SA that is
held by STX Europe AS, Reuters states.

South Korean M&A publication Market Insight reported earlier on
Nov. 4, citing unnamed investment banking sources, the four
parties that entered non-binding bids in the sale were France's
DCNS Group, Italy's Fincantieri SpA and Netherlands' Damen
Shipyards, and a fourth non-Korean bidder, Reuters relays.

France's Industry Minister Christophe Sirugue confirmed to
Reuters that there had been four offers, including at least two
from Europe.

According to Reuters, the Korean media report said there isn't a
high chance that both will be sold together as potential buyers
are only interested in STX France.

STX Offshore & Shipbuilding Co. Ltd. is a Korea-based company
mainly engaged in the shipbuilding and offshore business.  The
company operates its business through five segments: merchant
vessel, cruise, offshore and specialized vessel (OSV), vessel
apparatus and other segment.


CORNERSTONE TITAN 2007-1: S&P Affirms D Ratings on 5 Note Classes
S&P Global Ratings affirmed its 'D (sf)' ratings on Cornerstone
Titan 2007-1 PLC's class A2, B, C, D, and E notes.

Cornerstone Titan 2007-1 is a European commercial mortgage-backed
securities (CMBS) transaction that closed in March 2007.  It was
originally backed by 32 loans.  The affirmations follow S&P's
review of the three remaining loans in this transaction.


The current securitized loan balance is EUR30.4 million.  The
sale of the last asset closed in April 2016 and a portion of the
net disposal proceeds were placed into a trust account held by
the special servicer, with the remaining EUR2 million used to
repay the loan on the April 2016 interest payment date (IPD).
Including other funds previously received in the trust account,
the current balance of the trust account was approximately
EUR975,000 prior to the July 2016 IPD.

The special servicer has not yet made a final recovery
determination as the insolvency proceedings in Luxembourg have
not yet completed.

S&P's analysis assumes no further recoveries on this loan.


The current securitized balance is EUR18.6 million.  The loan
transferred to special servicing in April 2011 due to a loan-to-
value ratio breach.

The loan is secured by a portfolio of 10 small out-of-town single
tenanted supermarket/retail properties in Germany.  The assets
are all situated in secondary locations.

The sales process is ongoing.  A data room has been prepared and
the special servicer is currently appointing brokers and has
requested an updated valuation.

S&P has assumed losses for the loan in its 'B' rating stress

                     KLIMSON (17% OF THE POOL)

The current securitized balance is EUR10.0 million.  All
properties securing the loan have been sold.  The proceeds (less
a retention provision of funds for the costs relating to the
wind-down of the borrower entity) were applied towards repayment
of amounts outstanding or in connection with the loan at the July
2016 IPD.

S&P's analysis assumes no further recoveries on this loan.

                        RATING RATIONALE

S&P's ratings address timely payment of interest, payable
quarterly in arrears, and payment of principal not later than the
legal final maturity date in January 2017.

Following S&P's review of the remaining loans, it has affirmed
its 'D (sf)' rating on the class A2 notes.  This class of notes
has previously experienced interest shortfalls.  In addition,
given that legal final maturity is in three months' time and the
sale of the assets securing the German Retail Portfolio II loan
are still in the early stages, the risk of principal payment
default at the legal final maturity date has increased.

S&P has also affirmed its 'D (sf)' ratings on the class B, C, D,
and E notes.  These classes of notes continue to experience
interest shortfalls given that non-accruing interest (NAI)
amounts have been allocated to them.


Cornerstone Titan 2007-1 PLC
EUR1.322 bil commercial mortgage-backed floating-rate notes
Class              Identifier              To         From
A2                 21925BAB9               D (sf)     D (sf)
B                  21925BAC7               D (sf)     D (sf)
C                  21925BAD5               D (sf)     D (sf)
D                  21925BAE3               D (sf)     D (sf)
E                  21925BAF0               D (sf)     D (sf)

DEUTSCHE BANK: Fitch Puts 'BB' AT1 Notes Rating on Watch Neg.
Fitch Ratings has placed Deutsche Bank AG's 'A-' Long-Term Issuer
Default Rating (IDR), 'F1' Short-Term IDR and 'a-' Viability
Rating (VR) and its debt ratings on Rating Watch Negative (RWN).

The ratings have been placed on RWN because Fitch believes that
the challenges posed by a sluggish business environment,
particularly in Europe but also in Asia Pacific, will make it
harder for Deutsche Bank to build revenue and, therefore, capital
during 2017 in line with its 2020 strategy.  The bank needs to
demonstrate its ability to improve revenue generation to maintain
its 'A-' Long-Term IDR.  The ratings could also be downgraded if
there are material setbacks to the planned capital trajectory due
to incremental litigation and regulatory charges.

Fitch expects to resolve the RWN at the latest after the bank's
1Q17 earnings are published.  Fitch expects the first quarter of
next year to bring some transparency into the effectiveness of
the bank's cost-cutting and restructuring measures as well as
into its ability to defend its franchise and generate revenue in
line with Global Trading and Universal Bank (GTUB) peers.  Fitch
also believes that the bank could have resolved some of its
significant outstanding misconduct and litigation by then.

Deutsche Bank's IDRs, VRs and senior debt ratings reflect our
view that the bank can remain on track with the objectives set
out in its 2020 strategy, but reaching the 12.5% common equity
Tier 1 (CET1) and 4.5% leverage ratio targets by 2018 will
require improved revenue to build internal capital generation
from 2017.

Deutsche Bank's business model will continue to be more focused
on capital markets businesses than those of the other Europe-
based GTUBs, which makes it more sensitive to the business
environment. The RWN is based on the increased risk that the
bank's ability to improve revenue generation will be hampered by
sluggish corporate investment appetite globally, but especially
in Europe.  Continued negative publicity surrounding the
settlement with the US Department of Justice (DoJ) could also
encumber revenue generation.

At the same time, vulnerable customer sentiment and staff morale
during the restructuring phase are making it more difficult for
Deutsche Bank to compete effectively against GTUB peers, which
have less restructuring to do to adapt business models and
improve efficiency.

Deutsche Bank has made good progress at implementing an
ambitious, intensive restructuring programme.  This is
demonstrated by agreed or completed business disposals, progress
in running down the Non-Core Operating Unit (NCOU) to EUR18bn
risk-weighted assets at end-9M16, aiming to reach below EUR10bn
by year-end, and agreements with the works council over reducing
staff in Germany.

Deleveraging has allowed the bank to maintain acceptable leverage
and CET1 ratios (end-September 2016: 3.5% and 11.1% respectively,
both on a fully loaded basis), although the stock of CET1 capital
has declined.  Completion of the sale of Hua Xia Bank, which was
approved by the Chinese regulators this week, adds 10 basis
points to the leverage and 50 basis points to the CET1 ratios,
according to the bank's pro-forma calculations.

As the bulk of restructuring expenses is front-loaded, earnings
are likely to remain weaker than peers' for the rest of 2016.
Improvements should be visible from 1Q17, as the benefits of
cost-cutting efforts surface and earnings are less distorted by
losses related to deleveraging.  Management indicated that net
income for 2016 could be negative, depending on the timing and
amount of litigation and misconduct charges.

Maintaining its corporate and capital markets franchises is
paramount.  Performance in 9M16 has been weaker than in the past
and market shares in some capital markets businesses have
declined.  This decline partly relates to the strength of US
fixed income and improvement there versus sluggishness in Europe.
It also reflects Deutsche Bank's decision to exit some markets,
such as US securitisation trading, which performed well in 3Q16.
However, Fitch expects that there has been some franchise erosion
this year from the bank's focus on restructuring coupled with
headline "noise" around the DoJ settlement.  Fitch expects
European capital markets to remain challenging at least into the
first half of 2017, which will make it even more important for
Deutsche Bank to demonstrate its franchise strength.

The private banking, wealth and asset management businesses are
smaller contributors to earnings.  Deutsche Bank plans to spin
off of its domestic retail banking subsidiary, Deutsche Postbank
(BBB+/Stable), which will boost its CET1 and especially its
leverage targets.  However, although the bank has been separated
from the rest of the business operationally, the sale may be
delayed because of unfavourable market pricing.

Deutsche Bank's Short-Term IDR and short-term debt rating of
'F1', the higher of the two Short-Term IDRs that map to an 'A-'
Long-Term IDR on Fitch's rating scale, reflect its view that the
bank's liquidity profile remains very strong, its liquidity
reserves are ample and its funding profile is well-diversified by
geography, product and customer base.  However, the cost of
wholesale funding has increased in 2016 and the bank has
experienced some, but not substantial, deposit outflows related
to the negative publicity around its DoJ settlement.  The short-
term ratings are on RWN because a downgrade of the Long-Term IDR
to 'BBB+' would map to a Short-Term IDR of 'F2'.


The IDRs and debt ratings of Deutsche Bank's rated subsidiaries
in the US and Australia are equalised with Deutsche Bank's to
reflect their core roles within the group, especially Deutsche
Bank's capital markets activities, and their high integration
with the parent bank or their role as issuing vehicles.


Deutsche Bank's Support Rating (SR) of '5' and Support Rating
Floor (SRF) of 'No Floor' reflect our view that senior creditors
cannot rely on receiving full extraordinary support from the
sovereign in the event that it becomes non-viable.


Subordinated debt and other hybrid capital issued by Deutsche
Bank and its subsidiaries are all notched down from Deutsche
Bank's VR in accordance with our assessment of each instrument's
respective non-performance and relative loss severity risk

Legacy Tier 1 securities are rated four notches below the VR,
reflecting higher-than-average loss severity (two notches), as
well as high risk of non-performance (an additional two notches)
given partial discretionary coupon omission.

High and low trigger contingent additional capital Tier 1 (AT1)
instruments are rated five notches below the VR.  The issues are
notched down twice for loss severity, reflecting poor recoveries
as the instruments can be converted to equity or written down
well ahead of resolution.  In addition, they are notched down
three times for high non-performance risk, reflecting fully
discretionary coupon omission.

Available Distributable Items (ADIs) referenced for these
securities are calculated annually under German GAAP for the
parent bank.  ADIs at end-2015 were EUR1.09 bil. and Deutsche
Bank paid an AT1 coupon in April 2016.  Fitch understands from
the bank that its coupon distribution capacity for 2017 can
benefit from EUR1.9 bil. remaining German GAAP reserves and a
EUR1.6 bil. pro-forma positive effect from the Hua Xia Bank sale.

Non-payment of Deutsche Bank's AT1 coupon would also be triggered
if it breached its Maximum Distributable Amount (MDA)
requirement, which in 2016 refers to the 10.76% combined CET1 and
buffers requirement, including the Pillar 2 add-on resulting from
the ECB's Supervisory Review and Evaluation Process (SREP).
Deutsche Bank had a 184bp CET1 ratio buffer over this threshold
at end-9M16.

Fitch expects the MDA threshold to fall in 2017, so the buffer of
capital held above this will widen.  The increase will result
from a recent change to how SREP is set for EU banks, which
splits the Pillar 2 amount between a binding requirement and non-
binding guidance, and the guidance part is excluded from the MDA.
This benefit will to some extent be counterbalanced by a
decreasing buffer resulting from the bank's transitional CET1
ratio reducing as it moves through the transitional phases until
2019 and the required GSIB add-on increasing.  The net effect of
these moving parts will depend on the new Pillar 2 requirement
for the bank set by the ECB, which we expect Deutsche Bank to
disclose by end-2016. We expect the bank to maintain a
comfortable buffer above the ECB's MDA threshold.

                       RATING SENSITIVITIES

The RWN signals Fitch's view that Deutsche Bank's IDRs, VR and
senior debt ratings will be downgraded if one of the following
occurs: significant revenue reduction in 4Q16; failure to achieve
sufficient improvement in underlying earnings in 1Q17 to
demonstrate a good competitive position and ability to build
capital to required levels; incremental litigation and misconduct
settlement charges that cannot be easily absorbed by underlying

The ratings would most likely be downgraded by one notch to
'BBB+'/'F2'/'bbb+', but a more severe downgrade could occur if
the bank's performance worsens materially beyond expectations or
litigation and regulatory charges are substantially more than
provision levels and earnings capacity.


The RWN on Deutsche Bank's subsidiaries' ratings reflect the RWN
on the parent bank's ratings and the ratings would move in line
with Deutsche Bank's.  The SRs would be downgraded to '2' from
'1' if the parent's ratings are downgraded, reflecting a weakened
ability to support.  They are further sensitive to any change in
our assumptions around the propensity of Deutsche Bank to provide
timely support.


An upgrade of Deutsche Bank's SR and upward revision of the SRF
would be contingent on a positive change in the sovereign's
propensity to support its banks.  While not impossible, this is
highly unlikely in our view.


As subordinated debt and other hybrid securities are notched down
from Deutsche Bank's VR, their respective ratings are primarily
sensitive to a change in Deutsche Bank's VR.  The securities'
ratings are also sensitive to a change in their notching, which
could arise if Fitch changes its assessment of the probability of
their non-performance relative to the risk captured in the
respective issuers' VRs.  This may reflect a change in capital
management in the group or an unexpected shift in regulatory
buffer requirements, for example.

For AT1 instruments, non-performance risk could increase and the
instruments notched further from the VR if the MDA buffer
tightens considerably as a result of a heightened Pillar 2
binding requirement or CET1 erosion from losses.  The latter
would also likely reduce ADI.

The rating actions are:

Deutsche Bank AG
  Long-Term IDR: 'A-' placed on RWN
  Short-Term IDR: 'F1' placed on RWN
  Viability Rating: 'a-' placed on RWN
  Support Rating: affirmed at '5'
  Support Rating Floor: affirmed at 'No Floor'
  Senior debt, including programme, ratings: 'A-'/'F1' placed on
  Senior market-linked securities: 'A-(emr)'/'F1(emr)' placed on
  Subordinated market-linked securities: 'BBB+(emr)' placed on
  Subordinated Lower Tier II debt: 'BBB+' placed on RWN
  Additional Tier 1 notes: 'BB' placed on RWN

Deutsche Bank Securities
  Long-Term IDR: 'A-' placed on RWN
  Short-Term IDR: 'F1' placed on RWN
  Support Rating: '1' placed on RWN

Deutsche Bank Trust Company Americas
  Long-Term IDR: 'A-' placed on RWN
  Short-Term IDR: 'F1' placed on RWN
  Support Rating: '1' placed on RWN
  Senior debt, including programme, ratings: 'F1' placed on RWN

Deutsche Bank Trust Corporation
  Long-Term IDR: 'A-' placed on RWN
  Short-Term IDR: 'F1' placed on RWN
  Support Rating: '1' placed on RWN
  Senior debt, including programme, ratings: 'A-'/'F1' placed on

Deutsche Bank Australia Ltd.
  Commercial paper 'F1' placed on RWN

Deutsche Bank Financial LLC
  Short-Term IDR: 'F1' placed on RWN
  Commercial paper: 'F1' placed on RWN

  Deutsche Bank Contingent Capital Trust II: 'BB+' placed on RWN
  Deutsche Bank Contingent Capital Trust III: 'BB+' placed on RWN
  Deutsche Bank Contingent Capital Trust IV: 'BB+' placed on RWN
  Deutsche Bank Contingent Capital Trust V: 'BB+' placed on RWN

KION GROUP: Moody's Confirms Ba1 Corporate Family Rating
Moody's Investors Service confirmed the corporate family rating
(CFR) of KION Group AG (KION) at Ba1, as well as its probability
of default rating (PDR) at Ba1-PD. The outlook on the ratings is
now negative. Concurrently Moody's has withdrawn the B2 CFR and
the B2-PD PDR of DH Services Luxembourg S.a.r.l (Dematic), the
Ba3 ratings assigned to the senior secured revolving credit
facility and term loan of Mirror BidCo Corp and the positive
outlook assigned to Mirror BidCo Corp. At the same time, Moody's
has upgraded the $265 million senior unsecured notes of Dematic
to Ba1 from Caa1. The outlook on Dematic has been changed to
negative from positive. This action concludes the review process
on KION's ratings initiated on June 24, 2016, upon KION's
announcement of an acquisition of Dematic.

"The rating action has been triggered by a successful closure of
the partially debt-funded acquisition of Dematic", says
Oliver Giani, Moody's lead analyst on KION. "Solid top line
growth at KION as well as at Dematic enabled us to conclude the
review process initiated in June with just an outlook change to
negative without changing the ratings of KION," he added.


KION is acquiring Dematic for an enterprise value of USD3.25
billion. The transaction will be initially financed with a EUR3
billion committed bridge loan facility, which will then be
refinanced through a combination of equity, long-term bond and
bank debt. In July 2016, KION utilized its existing authorized
capital in full and increased its share capital by 10%,
generating gross proceeds of around EUR460 million that were used
to refinance the acquisition and thereby reducing the drawing
under the bridge loan facility to approximately EUR2.5 billion.
In addition, KION intends to request the approval of its
shareholders in its next shareholders meeting to create another
authorized capital of up to 10% with the objective to further
strengthen the capital structure following the Dematic
acquisition in the light of prevailing market conditions, also
taking into consideration its stated financial policy to maintain
a strong cross-over credit profile with reliable access to debt
capital markets.

Assuming another capital increase would occur in 2017 with a
similar size as that of July 2016, the rating agency expects that
KION's debt/EBITDA ratio (as adjusted by Moody's) will achieve a
level of around 3.5x by the end of 2017, which is the threshold
Moody's has set for a downgrade to Ba2. However, if KION managed
to successfully expand margins for KION and Dematic on a combined
basis towards their medium-term target of 12% EBIT margin,
Moody's adjusted debt/EBITDA ratio could improve below that level
in the next 12-18 months.

KION has strongly performed during the last two quarters, as has
Dematic during the past nine months. If this trend continues into
2017 the combined group will very likely achieve a leverage ratio
that would be in line with the ratios set for maintaining the
current rating. However, initially the rating will be weakly
positioned, and any negative deviation from the expected path
could lead to downward pressure.

On the back of solid top line growth -- KION's sales have
increased by 5% in first nine months of 2016 compared to similar
period in 2015 -- and with first restructuring benefits coming
through, KION's EBIT margin (adjusted by KION) has improved to
9.5% for year-to-date September 2016 compared to 9.1% in the
comparable period of the previous year.

The purchase of Dematic makes strategic sense for KION because it
will broaden the service offering of KION and enable the company
to provide full-range intralogistics solutions to its customers.
Dematic has benefited from the strong market growth in supply
chain automation, as reflected in double-digit organic growth
since 2013, which is expected to continue in the next few years.
In addition, Dematic has a complementary geographical footprint
compared to KION with 2/3 of revenues generated in the US, which
will enhance KION's presence in North America (sales share to
increase to 20% from 5%).


Upward pressure on the ratings would develop if KION were to
demonstrate the ability to sustainably generate a Moody's
adjusted EBITA margin of around 10% and further build a track
record of conservative financial policies, with Moody's adjusted
debt/EBITDA sustainably well below 3.0x, while maintaining
meaningful free cash flow generation through the cycle.

Downward pressure might develop on the ratings if KION were
unable to manage leverage below 3.5x debt/EBITDA by year-end
2017, if the expected second capital increase does not
materialize during the next twelve months or if management were
to employ more aggressive financial policies, as exemplified by
further sizeable acquisitions before the Dematic takeover has
been successfully integrated. Moody's would also consider a
downgrade, if there is an evidence of permanent erosion of KION's
profitability and sustained negative free cash flow.

Based in Luxembourg, Dematic is a leading provider of logistics
and material handling solutions with a strong focus on e-
commerce, food, general merchandise and apparel retail. For the
calendar year ended December 2015, the company generated revenues
of USD1.8 billion and adj. EBIT margin of USD166 million
(adjusted in line with KION's reported margin). Combined with
Dematic, KION would have generated more than EUR6.7 billion in
revenue for the calendar year 2015 and has a profitability of
approx. 9.4% adjusted EBIT margin (based on KION accounting
treatment) for this period.

The principal methodology used in these ratings was Global
Manufacturing Companies published in July 2014.

RWE AG: Moody's Affirms Ba2 Sub. Hybrid Capital Securities Rating
Moody's Investors Service affirmed the senior long- and short-
term Baa3/P-3 ratings of German utility, RWE AG (RWE) and the Ba2
rating for its Subordinated Hybrid Capital Securities (the hybrid
notes), following the sale of around 23% of the shares in RWE's
subsidiary, innogy SE (innogy).

The outlook on the senior bonds (or senior debt) of RWE AG,
innogy Finance B.V. and innogy Finance II B.V. under the
guarantee of RWE AG remains stable.

At the same time, Moody's has changed the outlook to negative
from stable on the EMTN programme of RWE and on the hybrid notes.



The affirmation of the ratings of the senior debt and hybrid
notes reflects Moody's view that (1) the credit quality of the
RWE group; and (2) the hybrid notes' positioning relative to the
senior debt at RWE is unchanged, following the sale by RWE of 23%
of its shares in innogy.

Moody's considers that the share sale has not altered the
consolidated credit quality of the RWE group because the
divestment and future cash leakage to minority shareholders is
offset by the sale proceeds. A total of EUR2 billion of the
primary proceeds will be retained within innogy and is likely to
be dedicated towards investments, while RWE will retain EUR2.6
billion to add to its financial flexibility.

The rating agency notes that RWE and innogy have entered into "an
agreement on basic principles", which sets out an intention to
manage the companies independently of each other such that both
can pursue their own strategic, operating and financial targets.
Nonetheless, Moody's also notes that RWE continues to enjoy
significant control through its 77% stake in innogy and its
associated shareholder rights -- such as control over dividend
policy and other capital and management decisions -- that it may
exercise, in extremis, to support the financial obligations at
the parent.

The ratings' affirmation also takes into account the RWE group's
continuing scale, diversity and leading business positions along
the "energy value" chain in many markets and strategy to defend
its financial profile, including a significant reduction in net
financial debt (excluding adjustments for nuclear and pension
provisions) in recent years. The group will further benefit from
an increasing proportion of earnings from regulated and
contracted activities at innogy as increasing investments
generate income. RWE will, nonetheless, remain exposed to higher
risk activities through its large generation and trading
portfolio. Earnings will continue to be affected by volatile
power prices, which still remain low compared with historic
levels, despite the recent rebound in commodity prices.

Moody's notes that RWE has indicated that it may continue to
monetise further stakes in innogy (up to a potential 49% sell
down). Sale proceeds will bolster RWE's financial flexibility and
ability to meet its residual debt and other obligations (pension,
nuclear and mining decommissioning obligations) but at the
expense of future dividend income and a large share of relatively
lower risk assets at innogy. In this context, RWE's future
strategy, which is yet to be announced, will become increasingly
important in determining the company's credit quality.



The stable outlook on the senior debt reflects RWE's intention
that, in due course, it will seek to further reorganise its
senior debt, transferring full liability to innogy. This debt is
currently issued directly through RWE or indirectly through
innogy Finance B.V. and innogy Finance II B.V., under the
guarantee of RWE. If successful, innogy will replace RWE, either
directly as issuer, or as guarantor.

Negative pressure could develop on any bonds, for which innogy
does not become fully liable, for the reasons described below.



Moody's does not believe that RWE is likely to make any new
issuance under the existing programme during the expected
transfer process of the senior bonds. The negative outlook
nonetheless indicates that any senior debt, or existing or
updated debt programmes, that remain at RWE, could come under
negative pressure because they will be structurally subordinate
to any debt obligations at innogy and will rank behind its
minority shareholders. RWE will also hold the riskier generation
and trading assets. The short-term Prime-3 debt rating could also
come under negative pressure for similar reasons.


The outlook could be stabilised if Moody's view on (1) the
consolidated credit strength of the RWE group; and/or (2) the
evolution of the stand-alone credit quality of RWE, on further
clarification of RWE's strategy, were to improve such as to
justify the maintenance of a Baa3 rating at RWE.

Moody's view of the consolidated credit strength of the RWE group
could improve if (1) group financial metrics were to sustainably
increase above those indicated for the current Baa3 rating of
FFO/net debt of low-mid teens and RCF/net debt of low double
digits/low teens, in percentage terms and/or (2) the rating
agency's view of the operating risks, or the extent to which RWE
is exposed to them, were to be reduced. These could relate to the
power price environment and/or political and legislative risks.
Our view could also be affected, ether negatively or positively,
by RWE's strategy, once determined.

Should the negative pressure described under the outlook
materialise, then this ratings pressure could potentially result
in a downgrade, any such downgrade is likely to be limited to one

Negative pressure could also develop if our view of (1) the
consolidated credit quality of the group were to weaken,
potentially as a result of group metrics falling consistently
below the guidance indicated for the current Baa3; and/or (2)
operating, political or regulatory risks were to increase; and/or
(2) the standalone credit quality of RWE were to weaken (see


The negative outlook on the hybrid notes reflects RWE's intention
to keep them at the RWE level. It therefore takes into account
(1) that these notes will also be structurally, as well as
contractually, subordinate to senior obligations within the
group; (2) uncertainty over RWE's future strategy including the
hybrids' positioning within the future capital structure of the
company, which may include senior debt; and (3) the evolution of
RWE's standalone credit quality, which may weaken (as described
below), and weigh on cash flows available to service the hybrid
or affect recovery in a default scenario.

While RWE maintains a significant majority stake in innogy,
Moody's will focus on the consolidated credit quality of the
group in determining ratings at RWE (and innogy). Nonetheless,
Moody's recognises that the two companies will develop
increasingly divergent strategies.

At the RWE level, Moody's focus will increasingly shift to RWE's
standalone credit quality, as and when its stake in innogy
declines, and as its strategy, which is yet to be announced, is
determined. This assessment will include (1) its exposure to
higher risk generation and trading assets and the evolution of
their operating environment; (2) its proposed capital structure
and financial objectives; (3) the prospects for its existing
businesses and potential future investments; (4) likely dividend
income from innogy; and (5) the success of RWE in utilising
potential future share sale proceeds to offset the loss of income
from innogy, and hence maintain credit quality. As such, the
positioning of the hybrid notes is likely to become increasingly
influenced by its position in relation to that of any senior debt
ratings at RWE, rather than those at innogy.

Any ratings at innogy will continue to reflect the consolidated
credit strength of the group. innogy has a better business mix
profile, but Moody's assessment of its credit quality will take
into account that of the broader group and RWE's majority
ownership, and as yet, innogy has no track record of independent
operations. As and when RWE sells down further stakes in innogy
and as innogy's management establishes such a track record,
Moody's may begin to delink its view of the relative credit
quality of the two entities. Such a view is likely to reflect
positively the lower business risk profile of innogy, with its
emphasis on regulated and contracted businesses, as well as its
exposure to growing energy services and supply.


The outlook on the hybrid notes could be changed to stable, if
(1) RWE's current capital structure and high level of ownership
in innogy were to be maintained, although this is not
anticipated; and/or (2) further subordination of the hybrid
instruments (to senior debt and increasing minority interests at
RWE), were to be mitigated by a strengthening of the standalone
credit quality of RWE, such as through a significant reduction in
its debt and other obligations and/or through an improvement in
its business risk profile.

The rating could be downgraded if potential increasing
subordination of the hybrid notes and growing distance from the
relatively stable and predictable cashflows at innogy were not
mitigated by an improvement in the credit quality of RWE.

The following rating actions were taken:


Issuer: RWE AG

   -- Subordinate Regular Bond/Debenture, Affirmed at Ba2

   -- Senior Unsecured Medium-Term Note Program, Affirmed at

   -- Senior Unsecured Regular Bond/Debenture, Affirmed at Baa3

   -- Commercial Paper, Affirmed at P-3

   -- Other Short Term, Affirmed at (P)P-3

Issuer: innogy Finance B.V.

   -- BACKED Senior Unsecured Medium-Term Note Program, Affirmed
      at (P)Baa3

   -- BACKED Senior Unsecured Regular Bond/Debenture, Affirmed at

   -- BACKED Other Short Term, Affirmed at (P)P-3

Issuer: innogy Finance II B.V.

   -- BACKED Senior Unsecured Regular Bond/Debenture, Affirmed at

Outlook Actions:

Issuer: RWE AG

   -- Outlook, Changed To Negative(m) From Stable

Issuer: innogy Finance B.V.

   -- Outlook, Changed To Stable(m) From Stable

Issuer: innogy Finance II B.V.

   -- Outlook, Assigned Stable

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


GREECE: PM Reshuffles Cabinet, Aims to Conclude Bailout Review
Karolina Tagaris at Reuters reports that Greece's prime minister
told his new cabinet on Nov. 6 that Athens "can and will"
conclude its second bailout review in time for long-awaited debt
relief talks to begin in December.

Alexis Tsipras reshuffled his government on Nov. 4 and urged his
ministers to work hard to rapidly complete the review, which
includes labor reforms and fiscal issues Athens has agreed to
implement under its bailout by the European Union and the
International Monetary Fund, Reuters relates.

Restructuring Greece's debt, the highest in the euro zone, is the
leftist-led government's primary goal as it hopes to convince
voters years of austerity are bearing fruit and shore up its
waning popularity in opinion polls, Reuters notes.

"The negotiation can and will be concluded on time, for us to
have positive decisions at the Eurogroup on Dec. 5," Reuters
quotes Mr. Tsipras as saying.  "In other words, to begin talks
for specific short-term, mid-term and long-term measures for
Greek debt relief."

If that happens, Mr. Tsipras, as cited by Reuters, said, Greece
can eye its inclusion in the European Central Bank's quantitative
easing -- an asset-buying program from which it is excluded --
within the first quarter of 2017.  It can then regain access to
the bond market by the time its current bailout expires in 2018,
Reuters states.


ALFA BOND: Fitch Assigns 'B' Rating to USD400MM AT1 Notes
Fitch Ratings has assigned Alfa Bond Issuance plc's (ABI)
USD400 mil. 8% perpetual additional Tier 1 (AT1) notes a final
long-term rating of 'B'.

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

The assignment of the final rating follows the completion of the
issue and receipt of documents conforming to the information
previously received.  The final rating is the same as the
expected rating assigned on Oct. 27, 2016.

                        KEY RATING DRIVERS

The 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 to minimum required levels including
buffers 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 have no established redemption date; however, Alfa has
an option (subject to Central Bank Russia approval) to repay the
notes at the first coupon reset date (2021) and quarterly at each
future coupon date payment afterwards.

                      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-'.


GAZ CAPITAL: Moody's Assigns Ba1 Rating to Sr. Unsecured LPNs
Moody's Investors Service assigned a Ba1 rating with a loss given
default assessment of LGD4 to the proposed senior unsecured
EUR loan participation notes (LPNs) to be issued by, but with
limited recourse to, Gaz Capital S.A. (Gaz Capital, Ba1
negative), a public limited liability company incorporated in
Luxembourg. Gaz Capital will in turn on-lend the proceeds to
Gazprom, PJSC (Gazprom, Ba1 negative) for general corporate
purposes. The noteholders will rely solely on Gazprom's credit
quality to service and repay the debt.

"The Ba1 rating assigned to the notes is the same as Gazprom's
corporate family rating because the notes will rank on a par with
the company's other outstanding unsecured debt," says Denis
Perevezentsev, a Moody's Vice President -- Senior Credit Officer
and lead analyst for Gazprom.

LPNs will be issued under the existing $40 billion multicurrency
medium-term note programme (rated (P)Ba1) for issuing loan
participation notes. The notes will be issued for the sole
purpose of financing a loan to Gazprom under the terms of a
supplemental loan agreement between Gaz Capital and Gazprom
supplemental to a facility agreement between the same parties
dated 7 December 2005.


The Ba1 rating assigned to the notes is the same as Gazprom's
corporate family rating (CFR), which reflects Moody's view that
the proposed notes will rank pari passu with other outstanding
unsecured debt of Gazprom. The rating is also on par with the
Russian government's foreign-currency bond rating and the
foreign-currency bond country ceiling.

The noteholders will have the benefit of certain covenants made
by Gazprom, including a negative pledge and restrictions on
mergers and disposals. The cross-default clause embedded in the
bond documentation will cover, inter alia, a failure by Gazprom
or any of its principal subsidiaries, to pay any of its financial
indebtedness in the amount exceeding $20 million.

Gazprom's Ba1 CFR reflects its strong business profile as
Russia's largest producer and monopoly exporter of pipeline gas,
owner and operator of the world's largest gas transportation and
storage system, and Europe's largest gas supplier. Gazprom's
credit profile benefits from high levels of government support
resulting from economic, political and reputational importance of
the company to the Russian state. The rating also recognizes
Gazprom's strong financial metrics, robust cash flow generation,
underpinned by contracted foreign-currency-denominated revenues,
and modest leverage.

The rating is constrained by Gazprom's exposure to the credit
profile of Russia and is in line with Russia's sovereign rating
and the foreign-currency bond country ceiling of Ba1. The company
remains exposed to the Russian macroeconomic environment, despite
its high volume of exports, given that most of the company's
production facilities are located within Russia.


Upward pressure on Gazprom's ratings may develop in case of an
upgrade of Russia's sovereign rating and/or raising of the
foreign-currency bond country ceiling provided that the company's
operating and financial performance, market position and
liquidity remain commensurate with Moody's current expectations
and there are no adverse changes in the probability of the
Russian government providing extraordinary support to the company
in the event of financial distress.

The ratings are likely to be downgraded if (1) there is a
downgrade of Russia's sovereign rating and/or a lowering of the
foreign-currency bond country ceiling; (2) the company's
operating and financial performance, market position, and/or
liquidity profile deteriorate materially; and/or (3) the risk of
negative government intervention increases/materialises.


The principal methodology used in this rating was Global
Integrated Oil & Gas Industry published in October 2016. Other
methodologies used include the Government-Related Issuers
methodology published in October 2014.

Headquartered in Moscow, Russia, Gazprom is one of the world's
largest integrated oil and gas companies. It is focused on the
exploration, production and refining of gas and oil, as well as
the transportation and distribution of gas to domestic, former
Soviet Union and European markets. Gazprom also owns and operates
the Unified Gas Supply System in Russia, and is the leading
exporter of gas to Western Europe.

As of 31 December 2015, Gazprom had proved total oil and gas
reserves of approximately 122.2 billion barrels of oil
equivalent, with proved gas reserves of approximately 18.8
trillion cubic meters, which are equivalent to more than one
sixth of the world's total. For the last twelve months ended 30
June 2016, Gazprom produced 410 billion cubic meters of natural
gas and 52 million tonnes of liquid hydrocarbons. For the same
period, Gazprom reported sales of RUB6.2 trillion and its
Moody's-adjusted EBITDA amounted to RUB1.9 trillion.

GAZ CAPITAL: S&P Assigns 'BB+' Rating to Proposed Issue of LPNs
S&P Global Ratings said that it has assigned its 'BB+' long-term
debt rating to a proposed issue of loan participation notes
(LPNs) by Gaz Capital S.A., a financing vehicle of Russian
state-controlled gas company Gazprom PJSC (foreign currency
BB+/Stable/B, local currency BBB-/Stable/A-3).

The LPNs are to be issued within the framework of Gazprom's
$40 billion European medium-term note program.  The rating on the
LPNs mirrors the long-term foreign currency corporate credit
rating on Gazprom because, under the terms of the program,
noteholders have direct access to the company and effectively
face only Gazprom's credit risk.

GCL HOLDINGS: Moody's Affirms B2 Corporate Family Rating
Moody's Investors Service affirmed the B2 corporate family rating
(CFR) of GCL Holdings S.C.A., the holding company of Guala
Closures (Guala), a leading provider of closures mainly for
spirits and wine bottles. Concurrently, Moody's assigned a B2
rating to new EUR500 million Senior Secured Floating Rate Notes
(FRNs) due 2021 to be issued by Guala Closures S.p.A. The outlook
on all ratings is stable. Moody's also downgraded the probability
of default rating (PDR) to B2-PD from B1-PD.

The ratings of the existing Senior Secured Floating Rate Notes
and Senior Notes are not impacted and will be withdrawn once the
Notes have been repaid.

Proceeds from the transaction will be used to: (1) refinance
existing facilities; (2) pay fees and expenses and; (3) reduce
drawings on the Super Senior Revolving Credit Facility (RCF,
unrated) by approximately EUR7 million.

Today's affirmation of the CFR reflects the following drivers:

   -- High financial leverage that Moody's forecasts will be
      approximately 5.3x as at 31 December 2016 (FY2016).

   -- Improvement in the maturity profile of the group because
      the transaction will be used to refinance Senior Notes due
      2018 and Senior Secured Floating Rate Notes due 2019 out to
      2021. In addition the company has received consent from
      lenders to extend the maturity of the RCF to March 2018.

   -- A modest improvement in free cash flow because the group
      will refinance existing Senior Notes with a relatively high
      coupon of 9.38%.


The B2 CFR reflects: (1) a high level of customer concentration,
key customers are large with significant pricing power, although
this is mitigated to come extend as customers choose their
supplier on a brand basis; (2) high financial leverage that
Moody's forecasts to be approximately 5.3x as at FY2016; and (3)
potential volatility in raw material prices and the limited
extent of cost pass-through mechanisms in contracts. However, the
rating also positively reflects Guala's: (1) solid business
profile thanks to its market-leading position in safety closures
and high share of sales towards less-discretionary food and
beverage end markets; (2) good geographic diversification driven
by its strong penetration in the market for safety closures in
emerging markets; and (3) historical overall stable operating
performances, despite exposure to volatile raw material prices.

Liquidity is supported by a EUR75 million RCF due November 2017,
Moody's expects this to be comfortably refinanced before
maturity, the company has already received consent from lenders
to extend the maturity of the RCF to March 2018. Immediately
after the transaction, the undrawn portion of the RCF will total
approximately EUR28 million. Moody's expects Guala to maintain
adequate cash on balance sheet, approximately EUR50 million as of
FY2016, which, together with cash from operating activities, will
be sufficient to cover the group's annual cash needs. These
include: (1) modest volatility in working capital as result of
seasonality; (2) capex that we forecast to be between EUR30
million and EUR35 million per annum; and (3) dividends to
minority shareholders of approximately EUR5 million per annum.

The EUR500 million Senior Secured Notes due 2021 are rated B2 and
rank behind the EUR75 million Super Senior RCF. The notes and the
Super Senior RCF are secured against pledged assets and shares of
the group and supported by guarantees of approximately 66% assets
from material subsidiaries. The downgrade in the probability of
default rating to B2-PD from B1-PD, realigns the PDR to reflect a
50% recovery rate which is standard for a structure containing a
combination of loans and bonds.

Rationale for Stable Outlook

The outlook on the ratings is stable. Moody's expect that Guala
will continue to grow and gradually improve key credit metrics,
benefitting from the growing market penetration of safety
closures and wine caps. The stable outlook also assumes the RCF
will be refinanced on a timely basis since consent has been
received from lenders to extend the maturity to March 2018. The
outlook incorporates our assumption that Guala will not make any
large debt-financed acquisitions.

What could change the rating UP/DOWN

The rating could be upgraded if Guala sustainably improves
profitability and free cash flow leading to financial leverage,
measured as Moody's adjusted debt/EBITDA, sustainably below 5.0x,
together with FCF/Debt sustained above 5%.

The rating could be downgrade based on: (1) deteriorating
operating profitability leading to financial leverage, measured
as Moody's adjusted debt/EBITDA, increasing above 6.0x; or (2)
negative free cash flows.

Principal Methodology

The principal methodology used in these ratings was Packaging
Manufacturers: Metal, Glass, and Plastic Containers published in
September 2015.

GCL Holdings S.C.A. (Guala), incorporated in Luxemburg, is the
holding company of Guala Closures, one of the world largest
producers of closures for the spirits and wine industries. The
group holds a market-leading position in safety closures, which
are used to prevent counterfeit spirits and offer evidence of
tampering, and in the Aluminum wine screw caps segment. In
FY2015, the group generated revenues of EUR521 million and an
EBITDA (after Moody's adjustments) of EUR102.8 million (20%


OZLME BV: 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 OZLME B.V.

   -- EUR230,000,000 Class A Senior Secured Floating Rate Notes
      due 2030, Assigned (P)Aaa (sf)

   -- EUR63,000,000 Class B Senior Secured Floating Rate Notes
      due 2030, Assigned (P)Aa2 (sf)

   -- EUR24,000,000 Class C Senior Secured Deferrable Floating
      Rate Notes due 2030, Assigned (P)A2 (sf)

   -- EUR17,000,000 Class D Senior Secured Deferrable Floating
      Rate Notes due 2030, Assigned (P)Baa2 (sf)

   -- EUR25,000,000 Class E Senior Secured Deferrable Floating
      Rate Notes due 2030, Assigned (P)Ba2 (sf)

   -- EUR12,000,000 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 the legal final maturity of
the notes in 2030. The provisional ratings reflect the risks due
to defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure. Furthermore, Moody's
is of the opinion that the collateral manager, Och-Ziff Europe
Loan Management Limited ("Och-Ziff") has sufficient experience
and operational capacity and is capable of managing this CLO.

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

Och-Ziff 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 EUR42.00m of subordinated notes which will not
be rated.

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

Loss and Cash Flow Analysis:

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

Therefore, the expected loss or EL for each tranche is the sum
product of (i) the probability of occurrence of each default
scenario and (ii) the loss derived from the cash flow model in
each default scenario for each tranche. As such, Moody's
encompasses the assessment of stressed scenarios.

   -- Par amount: EUR400,000,000

   -- Diversity Score: 36

   -- Weighted Average Rating Factor (WARF): 2650

   -- Weighted Average Spread (WAS): 4.10%

   -- Weighted Average Coupon (WAC): 5.0%

   -- Weighted Average Recovery Rate (WARR): 42.0%

   -- Weighted Average Life (WAL): 8 years

Stress Scenarios:

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

Percentage Change in WARF: WARF + 15% (to 3048 from 2650)

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 3445 from 2650)

Ratings Impact in Rating Notches:

   -- Class A Senior Secured Floating Rate Notes: 0

   -- 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:-2

Methodology Underlying the Rating Action:

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

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. Och-Ziff's investment
decisions and management of the transaction will also affect the
notes' performance.


CB KAMSKY: Put on Provisional Administration on November 3
The Bank of Russia, by its Order No. OD-3776, dated November 3,
2016, revoked the banking license of credit institution
Commercial Bank Kamsky Horizont, LLC from November 3, 2016.

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 the Bank of Russia
regulations, repeated violation within a year of the requirements
of Article 7 (except for Clause 3 of Article 7) of the Federal
Law "On Countering the Legalisation (Laundering) of Criminally
Obtained Incomes and the Financing of Terrorism", and the Bank of
Russia regulations issued in compliance with the said federal
law, because the capital adequacy ratio of this credit
institution was below 2% and its equity capital dropped down
below the minimum authorized capital established by the Bank of
Russia as of the date of the state registration of the credit
institution, considering repeated application within a year of
measures envisaged by the Federal Law "On the Central Bank of the
Russian Federation (Bank of Russia)".

As a result of meeting the supervisor's requirements on creating
loan loss provisions for actually unavailable assets, the credit
institution fully lost its equity (capital).  LLC CB Kamsky
Horizont did not comply with the legislation and the Bank of
Russia regulations on legalization (laundering) of criminally
obtained incomes and financing of terrorism with respect to
misrepresentation to the authorized body.  Besides, the bank was
involved in dubious transit operations.  The management and
owners of LLC CB Kamsky Horizont did not take effective measures
to normalize its activities.  Under these circumstances, the Bank
of Russia performed its duty on the revocation of the banking
license of the credit institution in accordance with Article 20
of the Federal Law "On Banks and Banking Activities".

The Bank of Russia, by its Order No. OD-3777, dated November 3,
2016, appointed a provisional administration to LLC CB Kamsky
Horizont for the period until the appointment of a receiver
pursuant to the Federal Law "On Insolvency (Bankruptcy)" or a
liquidator under Article 23.1 of the Federal Law "On Banks and
Banking Activities".  In accordance with federal laws, the powers
of the credit institution's executive bodies are suspended.

LLC CB Kamsky Horizont is a member of the deposit insurance
system.  The revocation of the 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 a total of RUR1.4 million per one depositor.

According to the financial statements, as of October 1, 2016, LLC
CB Kamsky Horizont ranked 537th by assets in the banking system
of the Russian Federation.


* SPAIN: Number of Bankruptcies Down 22.2% in Second Quarter 2016
Il Sole 24 Ore Radiocor Plus, citing data released by national
statistical office Ine, reports that the number of bankruptcies
processed in the third quarter in Spain dropped 22.2% from the
second quarter and 17.4% year on year to 995, of which 937 were
voluntary and 58 necessary.

The number of voluntary bankruptcies fell a quarterly 20.9% and
an annual 16% while the necessary ones were respectively 38.3%
and 34.1% lower, Il Sole 24 Ore Radiocor Plus discloses.

According to Il Sole 24 Ore Radiocor Plus, a total of 865
companies declared bankruptcy in the quarter, down 20.0% from the
earlier three months and 19.2% lower than a year ago.


TURKEY REPUBLIC: S&P Affirms 'BB/B' FC Sovereign Credit Ratings
S&P Global Ratings revised its outlook on the Republic of Turkey
to stable from negative.  At the same time, S&P affirmed its
unsolicited 'BB/B' foreign currency long- and short-term
sovereign credit ratings and 'BB+/B' local currency long- and
short-term sovereign credit ratings on Turkey.

S&P also affirmed its unsolicited 'trAA+/trA-1' long- and
short-term Turkey national scale ratings.


The outlook revision reflects S&P's view that policymakers will
continue to move toward the implementation of key economic
reforms, as originally communicated more than two years ago in
Turkey's Tenth Development Plan 2014-2018, and that these
efforts, although subject to risks, will help underpin economic
stability, despite remaining domestic and external risks.  At
present, with high net external financing requirements and a
large open foreign currency position in the corporate sector,
Turkey continues to face large external vulnerabilities,
especially if the Turkish lira depreciates sharply.  At the same
time, S&P recognizes that the government has lowered the
sensitivity of public debt levels to foreign exchange volatility
by raising nearly all new financing in local currency.  According
to S&P's estimates, just under two-thirds of Turkish central
government debt is denominated in local currency, though nearly
one-fifth is held by non-residents.  Since 2009, the weighted
average maturity of Turkish government domestic borrowing has
more than doubled to about six years.

S&P notes that the state of emergency following the coup attempt
in July 2016 is likely to remain in place until at least January
2017.  However, S&P factors its expectation of ongoing domestic
political volatility -- related to the constitutional reform
process, the ending of the Kurdish peace process in mid-2015, and
heightened instability along Turkey's southeastern border with
Syria -- into S&P's ratings at the current level.  In S&P's view,
domestic tensions also remain following the detention,
suspension, or dismissal of more than 100,000 individuals,
largely in the judiciary, military, academic institutions, and
the media, on suspicion of being involved in or supporting the
attempted coup. To the extent that domestic tensions also raise
questions about property rights, foreign direct investment's role
in financing Turkey's large current account deficit is likely to
remain well below the highs (3.6% of GDP in 2006) it reached
during the ruling AKP party's first term in office.

"Since we last reviewed our rating on Turkey on July 20, 2016, we
have lowered our economic growth projections by a marginal 0.2%
in 2016 and 2017, largely in relation to the decline in economic
activity following the attempted coup.  Recent events have likely
exacerbated the sharp drop in tourism in 2016, with foreign
arrivals falling by 32% in January-September 2016 on an annual
basis.  The drop in tourist numbers follows concerns with regard
to domestic political volatility, past terrorist attacks, and
Russia's ban on the sale of package holidays to Turkey (lifted in
July 2016).  Public and private consumption have been the major
driver of GDP growth so far in 2016.  Private investment,
meanwhile, has been moribund, raising questions about Turkey's
path back to real GDP growth rates closer to 4%-5%, which we
believe could be attainable in light of the country's level of
development and favorable demographics," S&P said.

"Notwithstanding the political turmoil, we note that Turkey's
government has enacted a reform intended to wean the economy away
from its dependence on foreign financing.  In August 2016,
parliament passed a draft law bringing about mandatory enrollment
of employees aged under 45 in the Private Pension System (PPS)
starting from January 2017. The government projects the
regulation will create 6.7 million contributors to the PPS and
Turkish lira (TRY) 90 billion (4% of 2016 GDP; about EUR26
billion) of savings in 10 years.  As a result, we do not expect
this to bring about a significant structural improvement but it
nevertheless indicates positive intent.  Other government plans
to reduce Turkey's dependence on net debt financing from abroad,
and therefore to a large extent on monetary policy settings of
major central banks, include the aim to fund the severance pay
system, and to cut the bill for imported energy (an important
contributor to the current account deficit)," S&P noted.

In the absence of such reforms, though, S&P believes Turkey's
external position will remain a weakness for the ratings.  The
government's reform agenda also targets improving educational
standards, increasing labor market flexibility and female
participation in the workforce, and reducing the size of Turkey's
sizable informal economy (estimated at about 20% of GDP), among
other things.

However, the implementation of this ambitious program of reforms
competes to some extent, in S&P's view, with the president's
intention to bring about constitutional change with the end goal
of achieving an executive presidency.  This is likely to limit
parliamentary and, potentially also judicial, oversight of
government decisions.  S&P understands that the AKP plans to
submit draft constitutional changes to the parliament in the
coming months.  If the draft passes the parliament, it could be
taken to a referendum.  The AKP (317 seats of the 550 seats
available) would require 330 members of parliament to support a
referendum proposal in order for the constitutional changes to be
taken to the country.  Alternatively, the government could call
early elections but would need to win a two-thirds majority (376
members of parliament) to successfully pass a constitutional
change through parliament.  The next parliamentary elections are
due by October 2019, while the next presidential election is
scheduled in August 2019.

S&P has widened its current account deficit forecast over 2016-
2019 by 0.3 percentage points of GDP as S&P now expects oil
prices will gradually rise to $55 per barrel by 2019.

In 2015, S&P observed a significant portfolio outflow compensated
for by a sharp increase in net errors and omissions and a
drawdown of central bank reserve assets.  Financing of the large
current account deficit broadly improved over the first eight
months of 2016, alongside a reduction in still-sizable net errors
and omissions and an increase in central bank reserves.  S&P saw
net inflows (meaning an increase in net liabilities) of portfolio
investment in both July and August, following the attempted coup,
although in July the net inflows largely reflected a repatriation
of foreign assets.  Regarding the other investment line of the
financial account of the balance of payments, S&P notes that
there was a net outflow in July but a net inflow in August, as
domestic banks reduced their holdings of currencies and deposits
with foreign banks.  Net errors and omissions are positive, which
could indicate an under-recording of credits or the overstating
of debits in the balance of payments.

"Turkey's external position remains a weakness for the ratings.
However, we have lowered our estimate of Turkey's gross external
financing requirement for 2016-2019 to close to 170% of current
account receipts (CARs) plus usable reserves, from close to 185%,
largely due to the lengthening average maturity of Turkish
external debt.  An increase in reserve requirements for short-
term borrowing has resulted in a sharp fall in banks' reported
short-term debt.  Banks have shifted from short- to long-term
borrowing across all external borrowing types.  However, we note
that matured syndication loans with maturities of one year have
been mostly renewed by maturities of 367 days, indicating only a
marginal lengthening of maturities for this portion of external
borrowing," S&P said.

S&P views Turkey's banking system as generally well capitalized
and supervised.  S&P notes the size of state-owned banks is
relatively large, representing about one-third of total banking
system assets.  Furthermore, although the banking sector is fully
hedged, its foreign currency funding has risen in tandem with
declining profitability.  This could represent a risk for banks
if their hedges do not hold, due to counterparty risk, or because
of the second-round effects of the large open foreign exchange
position in the corporate sector (at about 25% of GDP) on banks'
asset quality.

Under S&P's fiscal assumptions, it incorporates its view that the
contingent liabilities of the Turkish general government are
limited.  Specifically, S&P considers that Turkey's domestic
banks -- the largest intermediators of the country's external
deficit -- will remain well regulated and amply capitalized.
Still, S&P expects banks' asset quality will gradually
deteriorate.  Their stock of outstanding nonperforming loans
(NPLs) is at about 3.3%.  S&P expects the sharp decline in
tourism receipts in 2016 will result in higher, but manageable,
NPLs for the banks.  S&P understands that systemwide NPLs could
be about two percentage points higher, when including large
Turkish banks' sales of NPLs and large restructurings that are
classified under Group II (defined as closely monitored credits
that are not included in NPLs).

Turkey's net foreign exchange reserves -- at an estimated
$41 billion in 2017 -- provide coverage for only about two months
of current account payments, suggesting limited buffers to offset
external pressures.  S&P expects the country's external debt will
exceed liquid external assets held by the public and banking
sectors by about 130% of CARs, on average over 2016-2019.  S&P
estimates the country must roll over nearly 41% of its total
external debt in 2017, amounting to more than $170 billion (4x
usable reserves; 23% of estimated 2017 GDP).

The uncertain global economic environment, particularly a
possible reversal in historically low U.S. interest rates could,
in S&P's opinion, raise real interest rates in Turkey.  This
could exacerbate any slowdown and, in turn, reduce the risk
appetite of nonresident investors in Turkey's government debt and
equity markets, which have been important destinations for
external financing inflows over the past several years.  In
addition, further increases in the prices of oil and other energy
products could accentuate any slowdown, given Turkey's large net
energy import bill.

Weaker economic growth has also led S&P to increase its general
government deficit estimate for 2016 by 0.5 percentage points of
GDP to 2.2% of GDP.  S&P forecasts the annual average increase in
general government debt (which is S&P's preferred fiscal metric
because in most cases it is more comprehensive than the reported
headline deficit) at 2.5% of GDP over 2016-2019, in the absence
of external shocks that could weigh further on growth prospects,
the exchange rate, and budgetary performance.  The government's
draft 2017 budget plan targets a central government budget
deficit of 1.9% of GDP, revised up from 1%.  Official data
indicates broadly balanced local government and social security
system budgets.  So the central government deficit is the main
component of the general government balance.  The upward revision
to the government's 2017 central government deficit largely
reflects a marked increase in budget allocation for investment
spending (transport and investments under the development program
for eastern and southeastern cities) and increased government
subsidies to the real sector.  S&P now expects that the central
and government deficits will represent about 2.5% of GDP in 2017,
due to S&P's weaker economic growth forecasts.

S&P foresees the general government's interest burden at about 5%
of revenues and net general government debt at approximately 27%
of GDP over 2016-2019.

Turkey's low domestic savings rate results in low investment and
high interest rates to attract capital flows to Turkey, some
potentially flighty.  This is also partly due to a lack of
confidence in the Turkish lira.  A more credible monetary policy
could reduce inflation expectations and result in a higher
savings.  S&P thinks that curbs to the operational independence
of Turkey's central bank make it more challenging for the
monetary authority to credibly fulfill its price stability
mandate and to dampen the impact of exchange rate volatility on
the economy's growth prospects.  Although S&P considers that
Turkey's relatively deep capital markets benefit its monetary
flexibility, S&P views the complex monetary framework, with
multiple interest rates, as relatively ineffective, given the
high pass-through of exchange rate depreciation into headline
inflation.  S&P notes the central bank's recent efforts to
simplify the monetary policy framework. However, the cuts to the
upper range of the interest rate corridor loosen monetary policy
settings at a time when core inflation remains above 8% relative
to an inflation target of 5%.  Inflation expectations at around
7.5% in one year's time and 7.0% in two years' time, are
seemingly anchored to the central bank's inflation forecasts,
rather than to its stated target.


The stable outlook reflects the balance between the resilience of
the Turkish economy against lingering regional and domestic risks
which, if realized, could increase balance-of-payments pressures
and widen currently moderate fiscal deficits.

S&P could lower its ratings if Turkey's fiscal performance and
debt metrics deteriorated beyond S&P's current expectations.  S&P
could also lower its ratings if political uncertainty contributed
to further weakening in the investment environment or tightening
global policy rates intensified balance-of-payment pressures.

S&P could raise its ratings on Turkey if sustained rebalancing of
the source of economic growth led to much lower external
borrowing needs.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable.  At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee
by the primary analyst had been distributed in a timely manner
and was sufficient for Committee members to make an informed
decision. After the primary analyst gave opening remarks and
explained the recommendation, the Committee discussed key rating
factors and critical issues in accordance with the relevant
criteria. Qualitative and quantitative risk factors were
considered and discussed, looking at track-record and forecasts.

The committee agreed that all key rating factors were unchanged.

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


                              To               From
Turkey (Republic of)
Sovereign Credit Rating
  Foreign Currency|U          BB/Stable/B      BB/Negative/B
  Local Currency|U            BB+/Stable/B     BB+/Negative/B
  Turkey National Scale|U     trAA+/--/trA-1   trAA+/--/trA-1
Transfer & Convertibility
  Assessment|U                BBB-             BBB-

U Unsolicited ratings with no issuer participation and/or no
access to internal documents.

U N I T E D   K I N G D O M

ENTERPRISE INSURANCE: Liquidator Uncovers Regulatory Breaches
Joe Brennan at The Irish Times reports that a liquidator
appointed to Gibraltar-based Enterprise Insurance, which was
active in the Irish motor market in recent years, has found the
company had committed a number of regulatory breaches before it

In a report submitted to Gibraltar's Supreme Court and published
on Nov. 4, the liquidator, Freddie White of Grant Thornton
(Gibraltar), found that Enterprise failed to set aside enough
technical reserves to cover the risks it was insuring, The Irish
Times relates.

It also failed to maintain a sufficient capital cushion for
unexpected losses, or margins of solvency, as required by law,
and underwrote 10,000 roadside assistance policies in the UK that
it was not authorized to underwrite, The Irish Times discloses.

Mr. White, as cited by The Irish Times, said these breaches,
while not exhaustive, provided a basis for an investigation into
Enterprise Insurance by the Gibraltar Financial Services
Commission.  The company, which imploded in July, has an
estimated GBP151.5 million (EUR170.3 million) of liabilities to
policyholders, net of reinsurance, and an asset shortfall of
GBP94.4 million, The Irish Times relays, citing the report.

At the time of the collapse, Enterprise had 18,610 motor policies
in Ireland, according to the report, higher than an original
estimate of 14,000, The Irish Times states.

The report estimates the cost of Irish motor loss claims at
almost GBP8 million, out of a total of GBP143.8 million for the
group -- including GBP83.9 million in the UK, The Irish Times

Almost all of Enterprise's Irish customers had changed provider
by the time the liquidator was formally appointed, The Irish
Times says.

Mr. White took out an ad in The Irish Times on Nov. 4 saying he
had decided to dispense with a first meeting of creditors and
that a requirement to send claims forms to each creditor had been
dispensed with until further court directions, The Irish Times

According to The Irish Times, the liquidation report says there
is little or no prospect of unsecured creditors, other than
insured creditors, getting any money back given the level of the
group's insolvency.

Gibraltar-based Enterprise Insurance Company PLC is a fully
admitted EU insurer providing direct Insurance Capacity and
Fronting solutions across Europe.

GALA CORAL: Fitch Affirms Then Withdraws 'B+' Long-Term IDR
Fitch Ratings has affirmed Gala Coral Group Limited's Long-Term
Issuer Default at 'B+' and removed it from Rating Watch Positive
(RWP).  The Outlook is Positive.  All of Gala Coral's ratings
have been withdrawn.

                        KEY RATING DRIVERS

The Positive Outlook reflects Gala Coral's continued strong
performance in the online gaming business both in the UK and
Italy, which should underpin improved trading results and
financial metrics for 2016.  This has been achieved despite
increased regulatory constraints affecting all operators.

The withdrawal follows the completion of the acquisition of Gala
Coral by UK gaming operator Ladbrokes and the repayment of Gala
Coral's outstanding debt on Nov. 2, 2016.  Accordingly, Fitch
will no longer provide ratings or analytical coverage for Gala
Coral and its instruments.

In a separate commentary published on Oct. 23, 2016, Fitch stated
that it plans to affirm Ladbrokes' IDR at 'BB' with Stable
Outlook and remove it from Rating Watch Negative (RWN).  This
will be applicable to the enlarged Ladbrokes group now including
Gala Coral's operations.


Gala Coral Group Limited:
   -- Long-Term IDR: affirmed at 'B+', removed from RWP; Positive
      Outlook assigned; withdrawn

Gala Group Finance plc:
   -- Senior secured notes 'BB+'; withdrawn

Gala Electric Casinos plc:
   -- Subordinated senior notes 'B-'; withdrawn

KEYDATA INVESTMENT: Ford Loses Suit Against FCA Over Shutdown
Kit Chellel at Bloomberg News reports that banned finance
executive Stewart Ford lost a lawsuit against the Financial
Conduct Authority seeking as much as GBP462 million
(US$574 million) from the U.K. markets regulator after it shut
down his investment firm Keydata Investment Services Ltd. and
fined him for mis-selling insurance-linked bonds.

AAI Consulting Ltd., a company owned by Mr. Ford's family where
he is a director, a former Keydata manager and other three other
firms sued the FCA, saying the regulator "deliberately and
maliciously targeted both Mr. Ford and Keydata", Bloomberg
relays, citing a ruling handed down in a London court on Nov. 1.

But Judge Christopher Butcher said the claims against the FCA
were "deficient and embarrassing" and agreed to throw out the
suit without a trial, Bloomberg notes.

Mr. Ford was fined a then-record GBP75 million in 2015 for
failing to act with integrity while selling investment products
linked to life insurance policies, Bloomberg discloses.  Keydata,
an investment company with GBP2.8 billion under management, was
dissolved in 2014 after being put into administration by the FCA,
Bloomberg recounts.  At least GBP330 million has been paid out in
compensation to investors, Bloomberg states.

SYNLAB BONDCO: Moody's Rates EUR940MM Sr. Secured Notes 'B2'
Moody's Investors Service assigned a B2 rating to the proposed
EUR940 million senior secured notes to be issued by Synlab Bondco
PLC, a wholly-owned subsidiary of Synlab Unsecured Bondco PLC
(Synlab), Europe's largest clinical laboratory services provider.

The rating assignment reflects the following inter-related

   -- Moody's estimates that Synlab's leverage will increase pro
      forma for the proposed senior secured notes, but will
      remain within the B2 CFR rating category

   -- Moody's expects that Synlab will generate some interest
      savings on lower interest cost and enhance its scale as a
      result of upcoming acquisitions

All other ratings remain unchanged, namely: the B2 corporate
family rating (CFR); the B2-PD probability of default rating; the
B2 rating of the EUR900 million senior secured fixed rate notes
due 2022 and the B2 rating of the EUR775 million senior secured
floating rate notes due 2022 (to be repaid at issuance of the
proposed EUR940 million notes), both issued by Synlab Bondco PLC;
and the Caa1 rating of the EUR375 million senior unsecured notes
due 2023, issued by Synlab Unsecured Bondco PLC. The outlook on
all ratings is stable.


On November 3, 2016, Synlab proposed to issue EUR940 million
senior secured notes and use the proceeds to repay the EUR775
million floating rate senior secured notes due 2022; repay the
EUR61 million drawn under its EUR250 million super senior secured
revolving credit facility (RCF, unrated) due 2021; finance
transaction fees and redemption premiums (EUR20 million in
total); and use the remaining proceeds of EUR84 million for
general corporate purposes and acquisitions.

Moody's estimates that Synlab's leverage, as measured by
Moody's-adjusted debt/EBITDA, will increase to 6.5x pro forma for
the proposed senior secured notes from 6.2x as of June 30, 2016
(pro forma for estimated drawings on the revolving credit
facility after June 30, 2016). Despite this increased leverage,
Moody's expects that the additional debt will be offset by an
acceleration in the pace of Synlab's acquisitions. This will
further enhance the company's economies of scale and improve its
diversification across various regulatory regimes in Europe, key
competitive advantages in the fast consolidating clinical
laboratory testing services industry. In addition, Moody's
expects that Synlab will generate some interest savings as a
result of the refinancing.

Both Labco S.A. and synlab Holding GmbH, two groups that Cinven
combined on 1 October 2015, have a good track record of achieving
synergies from their numerous bolt-on acquisitions. Synergies
stem from the rationalisation of back-office functions of
acquired laboratories as well as lower costs driven by economies
of scale in processing, logistics and procurement. Therefore the
execution risk of future bolt-on acquisitions is relatively low.

Moody's expects that Synlab's liquidity will remain adequate pro
forma for the proposed senior secured notes, supported by long-
dated debt maturities, expected positive free cash flows of
around EUR55 million in 2017, and an undrawn sizable EUR250
million RCF. Synlab has one net leverage covenant on the RCF that
acts only as a draw-stop and tested only when the RCF is drawn by
at least 35%. Moody's estimates that Synlab would have good
headroom if this covenant were tested.

The B2 rating of the proposed senior secured notes and the B2
ratings of the outstanding senior secured notes are in line with
the B2 CFR. The B2-PD probability of default rating (PDR) is in
line with the B2 CFR reflecting Moody's 50% corporate family
recovery rate. The Caa1 rating of the senior unsecured notes
reflects their subordination to the senior secured notes and to
the super senior secured RCF (unrated).


The stable outlook reflects Moody's expectation that Synlab's
leverage, as measured by Moody's-adjusted debt/EBITDA, will trend
slowly below 6.0x in the next 12 months.


Positive rating pressure could develop if:

   -- Synlab's leverage, as measured by Moody's-adjusted
      debt/EBITDA, were to improve sustainably below 5.5x; and

   -- The company were to continue to generate positive free cash
      flow and improve profitability

Negative rating pressure could develop if:

   -- Synlab's leverage, as measured by Moody's-adjusted
      debt/EBITDA, were to go above 6.5x for a prolonged period;

   -- Its liquidity profile were to weaken; or

   -- Its profitability were to significantly deteriorate due to
      competitive or pricing pressures


The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.

Synlab Unsecured Bondco PLC (Synlab), headquartered in Munich,
Germany, is Europe's largest clinical laboratory services
provider with revenue of EUR1.52 billion as of 30 June 2016. It
operates a pan-European network of over 400 laboratories in 24
countries and employs approximately 12,900 people. Synlab is
majority-owned by private-equity funds managed and advised by

SYNLAB BONDCO: Fitch Assigns 'B+(EXP)' Rating to EUR940MM Notes
Fitch Ratings has assigned Synlab Bondco PLC's planned five-year
EUR940 mil. senior secured notes an expected rating of 'B+(EXP)'
with a Recovery Rating 'RR3' (63% expected recovery rate).

The notes are expected to refinance Synlab's existing EUR775m
floating senior secured notes maturing in July 2022, to term-out
revolving credit facility (RCF) drawings and fund transaction
fees.  The transaction is aimed at optimising the group's cost of
debt and improving liquidity to support further business growth.
The final ratings of the bonds are contingent upon receipt of
final documents conforming to the information already received by

Concurrently, Fitch has affirmed Synlab Unsecured Bondco PLC's
Long-Term Issuer Default Rating ('IDR') at 'B' with Stable
Outlook.  Fitch also affirm the existing instrument ratings for
Synlab Bondco PLC's super senior RCF at 'BB'/RR1 (100%), its
existing senior secured notes at 'B+'/RR3 (63%) and the senior
notes issued by Synlab Unsecured Bondco PLC at 'CCC+'/RR6' (0%).


Above-average Recoveries for Senior Secured Notes
The planned notes rank pari passu with the existing EUR900 mil.
senior secured notes with the same security and guarantees
offered to RCF creditors (albeit on a second priority basis).
Fitch expects a going concern restructuring scenario to yield
stronger recoveries for creditors than liquidation in a default
scenario. Hence our recovery analysis assumes a distressed sale
of the group as a whole because a liquidation of individual labs
could prove challenging given laboratory ownership regulatory
constraints in various European jurisdictions, in particular
clinical pathologists' pre-emptive rights in France.

Fitch has therefore applied 6.0x multiple on a 20% discounted
last-12 months EBITDA to September 2016, which results in above
average expected recoveries (63% recovery expectation) for the
senior secured notes, driving the 'B+(EXP)' instrument

Poor Recovery Prospects for Senior Notes

Based on our recovery assumptions the senior notes issued by
Synlab Unsecured Bondco PLC carry poor recovery prospects in a
default scenario given their subordination to the super senior
RCF and certain other obligations of non-guarantor subsidiaries
as well as the senior secured notes in the debt waterfall.  This
is reflected in the instrument rating of 'CCC+'/RR6.

We have assumed full recoveries on the super senior RCF given its
fairly small share of total debt and its seniority in the debt
waterfall as well as Germany being the group's centre of main
interest in an insolvency scenario instead of France.  As a
result, Synlab's RCF will remain at 'BB'/RR1 upon refinancing of
the senior secured notes.


Stretched Leverage; Business Model Supportive
Fitch views the capital structure of the Synlab Group, post-
acquisition of Labco SA, as leveraged, with funds from operations
(FFO) adjusted gross leverage close to 8.0x post refinancing and
FFO fixed charge cover remaining just below 2.0x (but trending
towards 2.0x over a four-year rating horizon).

Although such leverage is high for the 'B' IDR, the rating is
supported by adequate free cash flow (FCF) generation, projected
at between 5.5% and 7.5% over the rating horizon, as well by a
defensive business model, which increasingly benefits from scale

Further Consolidation Expected
The rating conservatively assumes that Synlab Group will conduct
a consolidation strategy of sourcing and executing low-risk bolt-
on acquisitions of laboratories at attractive multiples and
extracting synergies, driven by the fragmented nature of the
European laboratory testing market and weak organic growth
prospects.  As a result Fitch expects FFO adjusted gross leverage
to only gradually reduce to below 7.0x by 2017, a level
compatible with an IDR of 'B' for the sector. We would view any
large, transformational M&A as event risk.

Volume Growth Supports Profitability
Despite a comparatively stable pricing environment at present,
Fitch expects structural pressures on pricing to continue in many
of Synlab's core markets as healthcare payers seek to manage
rising medical cost inflation.  However Fitch expects this trend
to be counterbalanced by volume growth associated with increasing
demand from an ageing population in combination with more
preventive treatments and improved testing technology.

In this context we view Synlab's active consolidation strategy
offering cost and scale benefits as positive in counterbalancing
some of these secular industry trends.  This is already evident
in the attractive synergies realised from recent acquisitions,
which have driven its improved underlying profitability.
However, such an acquisition-driven strategy also calls for
careful management of financial and execution risks.

                          KEY ASSUMPTIONS

Fitch's expectations are based on the agency's internally
produced, conservative rating case forecasts.  They do not
represent the forecasts of rated issuers individually or in
aggregate.  Fitch's key assumptions for the rating case include:

   -- Low to mid-single digit organic growth in key markets with
      volume growth offsetting pricing pressures.
   -- EBITDA margin improving towards 20% by 2017 (post-merger:
      18%), due to cost savings and economies of scale achieved
      from the enlarged group.
   -- Around EUR105 mil. of bolt-on acquisitions per year after
      2016 to continue the growth and consolidation strategy.
   -- No dividends paid.

                       RATING SENSITIVITIES

Negative: Future developments that could, individually or
collectively lead to a negative rating action include:

   -- FFO adjusted gross leverage above 8.0x or FFO fixed charge
      cover at less than 1.3x for a sustained period of time
      (both adjusted for acquisitions).

   -- Reduction in FCF margin to only slightly positive levels,
      or large debt-funded and margin-dilutive acquisition
      strategy could also prompt a negative rating action.

Positive: Future developments that could, individually or
collectively lead to a positive rating action include:

   -- FFO adjusted gross leverage below 6.5x and FFO fixed charge
      cover above 2.0x.
   -- Improved FCF margin in the mid- to high-single digits or
      more conservative financial policy reflected in lower debt-
      funded M&A spend.


Synlab has access to a super-senior RCF of EUR250 mil. due in
2021, which should become fully available again once the drawn
amount is refinanced by the proposed senior secured issue.
Assuming a successful refinancing the group will not have any
other meaningful debt maturities before 2021.


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

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

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


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
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