TCREUR_Public/161118.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Friday, November 18, 2016, Vol. 17, No. 229


                            Headlines


C Y P R U S

BANK OF CYPRUS: Moody's Assigns (P)Ca Rating to Sr. Sub. Notes


C Z E C H   R E P U B L I C

OKD: Plans to Widen Legal Moves Against Zdenek Bakala


F R A N C E

LION/SENECA: S&P Puts 'B' CCR on CreditWatch Positive


I R E L A N D

CLARINDA PARK: Moody's Assigns B2 Rating to Class E Notes
CLARINDA PARK: S&P Assigns B- Rating to Class E Notes
WEATHERFORD INTERNATIONAL: S&P Lowers CCR to 'B+', Outlook Neg.


K A Z A K H S T A N

BANK OF ASTANA: S&P Affirms 'B/B' Counterparty Credit Ratings


N O R W A Y

LOCK LOWER: Moody's Continues to Review B2 CFR for Upgrade


P O L A N D

BANK BPH: Moody's Assigns Ba2 Issuer Ratings, Outlook Stable


R U S S I A

CB CREDO: Liabilities Exceed Assets, Assessment Shows
COMMERCIAL BANK EXPRESS-CREDIT: Put on Provisional Administration
SISTEMA JSFC: Moody's Withdraws Ba3 CFR for Business Reasons
SPC KATREN: S&P Affirms 'BB-' CCR, Outlook Stable


S P A I N

BANCO MARE: Fitch Assigns 'BB-' Rating to EUR175MM Sub. Notes


U N I T E D   K I N G D O M

ABENGOA CONCESSIONS: Seeks U.S. Recognition of U.K. Proceeding
ABENGOA CONCESSIONS: Chapter 15 Case Summary
CO-OPERATIVE BANK: Low Interest Rates Spur 200 Job Cuts
EUROPEAN DEV'T: Severe Cash Flow Problems Prompt Administration
HYPERION INSURANCE: S&P Affirms 'B' Rating, Outlook Stable


U Z B E K I S T A N

DAVR-BANK: S&P Affirms 'B-/C' Counterparty Credit Ratings

* Fitch Raises Ratings on 4 Uzbek State-Owned Banks to 'B+'


X X X X X X X X

* EU to Limit Bank-Failure Agencies' Power to Set Debt Levels
* BOOK REVIEW: Competitive Strategy for Health Care Organizations


                            *********


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C Y P R U S
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BANK OF CYPRUS: Moody's Assigns (P)Ca Rating to Sr. Sub. Notes
--------------------------------------------------------------
Moody's Investors Service has assigned provisional (P)Ca long-
term ratings to Senior Subordinated and Tier 2 Capital Notes to
be issued under the BANK OF CYPRUS PUBLIC COMPANY LIMITED's
EUR4 billion Euro Medium Term Note Programme.  Senior Unsecured
Notes that can be issued under the programme are already rated
(P)Caa3.

The (P)Ca provisional ratings on the Senior Subordinated and Tier
2 Capital Notes reflect the bank's caa3 standalone Baseline
Credit Assessment (BCA) and Moody's loss expectation based on the
notes' features, mainly their status as subordinated obligations
of the bank.

                         RATINGS RATIONALE

Bank of Cyprus' caa3 BCA captures: (1) the bank's weak albeit
improving asset quality, with the ratio of non-performing loans
to gross loans at 42.57% as of September 2016, which will take
time to materially improve; (2) the bank's strengthened capital
buffers, with a Common Equity Tier 1 ratio of 14.6% as of
September 2016, balanced against a high stock of non-performing
loans; and (3) the rating agency's expectation that the bank's
funding profile will continue to improve and the bank will repay
its Emergency Liquidity Assistance, which declined further to
EUR0.8 billion as of Nov. 15, 2016, ahead of its target in its
restructuring plan.

The (P)Ca provisional ratings on the Senior Subordinated Notes
also reflect their status as unsecured, subordinated obligations
of the bank ranking pari passu and without any preference among
themselves.  The notes rank senior to any claims qualifying as
Additional Tier 1 Capital or Tier 2 Capital of the bank, any
other subordinated obligations which by law and/or by their terms
rank junior to the bank's obligations under the Senior
Subordinated Notes, and all classes of share capital of the bank.
The securities rank junior to any unsubordinated obligations of
the bank and any other subordinated obligations which by law rank
senior to the bank's obligations under the Senior Subordinated
Notes.

The (P)Ca provisional ratings on the Tier 2 Capital Notes reflect
their status as unsecured, subordinated obligations of the bank
ranking pari passu and without any preference among themselves.
The notes rank senior to any claims qualifying as Additional Tier
1 Capital of the bank, any other subordinated obligations which
rank junior to the bank's obligations under the Tier 2 Capital
Notes, and all classes of share capital of the Bank.  The notes
rank junior to any unsubordinated creditors of the bank, any
claim not qualifying as Additional Tier 1 Capital or Tier 2
Capital of the Bank and which by law rank senior to the bank's
obligations under the Tier 2 Capital Notes and any other
subordinated obligations which by law rank senior to the Bank's
obligations under the Tier 2 Capital Notes.

               WHAT WOULD CHANGE THE RATINGS UP/DOWN

Upward pressure could develop on the ratings following further
improvements in Bank of Cyprus' financial performance, mainly a
reduction in the volume of NPLs and the repayment of Emergency
Liquidity Assistance.

Bank of Cyprus's Caa3 long-term deposit ratings have a positive
outlook indicating there is little downwards pressure on the
ratings.  Nevertheless, the outlook could stabilise if the bank's
progress with restructurings stagnates or if economic growth
falters leading to a reversal in the recent improvement to the
bank's asset quality metrics.

The provisional rating that Moody's has assigned addresses the
expected loss posed to investors.  Moody's ratings address only
the credit risks associated with the transaction.  Moody's did
not address other non-credit risks, but these may have a
significant effect on yield to investors.

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

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


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C Z E C H   R E P U B L I C
===========================


OKD: Plans to Widen Legal Moves Against Zdenek Bakala
-----------------------------------------------------
Chris Johnstone at Czech Radio reports that a large part of cigar
smoking Czech multi-billionaire Zdenek Bakala's fortune could go
up in smoke.  That at least is one scenario in play with the
current management of hard coal mining company OKD mulling
whether to widen legal moves seeking payment from Mr. Bakala and
his mining company New World Resources from CZK24.5 billion
(around EUR900 million) to CZK64.5 billion, Czech Radio notes.

The initial legal steps focused on CZK24.5 billion were already
at Ostrava's regional court last week, Czech Radio discloses.
The basic argument for the court is that Mr. Bakala stripped or
tunneled the Czech Republic's biggest hard coal mining company,
taking out in dividends and raiding the reserves between 2006 and
2012 in amounts that far exceeded the modest profits being turned
in and exceeded normal corporate good governance, Czech Radio
states.

Mr. Bakala's personal fortune was in 2016 reckoned at around
US$1.9 billion (around CZK48 billion), Czech Radio says.  He owns
the Czech Republic's main business newspaper and still has a wide
range of real estate and industrial investments, according to
Czech Radio.

Away from Mr. Bakala's own fortunes, those of the OKD mining
group still look uncertain, Czech Radio says.  A court cleared
the way in August for management to prepare a restructuring plan
that would avoid bankruptcy and the piecemeal sale of assets,
Czech Radio relays.  But it is still not clear whether the
restructuring plan will be ready by the original target date of
Dec. 12 or whether an extension of 120 days will be requested,
pushing back the date to April 12, 2017, Czech Radio states.
That was one of the subjects raised by Minister of Industry and
Trade, Jan Mladek, this week as he tried to pin down the company
and regional authorities whether they will be seeking more aid
from the government, Czech Radio relates.

There are some signs that the restructuring plan could take
longer than expected, Czech Radio notes.  OKD management have
started scouring around for a strategic investor who will be
willing to help the mining company keep going, the longest life
extension for operations is seen as to around 2023, Czech Radio
discloses.  But they are not expecting any feedback from their
approaches until the end of this year or the start of 2017,
according to Czech Radio.

One thing though is already pretty clear already, a restructured
OKD will not include the Paskov mine, Czech Radio says.  It is
set to close at the end of 2016, according to Czech Radio.  Five
hundred miners and two hundred technical staff are set to lose
their jobs, Czech Radio notes.

OKD is the only producer of hard coal (bituminous coal) in the
Czech Republic.  Its coal is mined in the southern part of the
Upper-Silesian Coal Basin -- in the Ostrava-Karvina coal
district.


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F R A N C E
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LION/SENECA: S&P Puts 'B' CCR on CreditWatch Positive
-----------------------------------------------------
S&P Global Ratings placed its 'B' long-term corporate credit
rating on France-based prescription frames and sunglasses
designer and optical retailer Lion/Seneca France 2 SAS (Alain
Afflelou) on CreditWatch with positive implications.

At the same time, S&P placed the 'BB' issue rating on the
EUR30 million super senior revolving credit facility (RCF), the
'B' issue rating on the EUR365 million senior secured notes due
2019, and the 'CCC+' issue rating on the EUR75 million senior
subordinated notes on CreditWatch with positive implications.
The recovery rating of '1+', indicating S&P's expectation of 100%
recovery in the event of a payment default on the super senior
RCF, is unchanged.  The '3' recovery rating on the EUR365 million
senior secured notes is also unchanged, and indicates S&P's
expectation of modest prospects of recovery (lower half of the
50% to 70% range) in the event of a payment default.  The '6'
recovery rating on the EUR75 million senior subordinated notes is
unchanged.

S&P expects to withdraw the issue and recovery ratings on these
debt issues after the IPO, when the notes will be refinanced with
new facilities.

Alain Afflelou registered its "Document de Base" with the French
market authority (AMF) on Oct. 18, 2016, which places it on a
firm path to an IPO.  S&P's CreditWatch positive placement
reflects its understanding that if the IPO is successful, the
group will strengthen its capital structure through a mixture of
debt repayment, equity issuance, and debt refinancing with longer
maturities.  These proposed actions make it likely that S&P will
raise the rating by at least one notch once the IPO completes.

Alain Afflelou aims to raise about EUR200 million in equity
capital via an IPO and has entered into a new senior credit
facilities agreement with a pool of banks.  This will provide the
group with a EUR270 million of term loan and a EUR30 million RCF
upon the IPO settlement date, allowing the group to repay both of
its outstanding note issues: the senior secured notes of
EUR375 million and the unsecured notes of EUR75 million.

Moreover, the group's capital structure will be augmented by the
conversion of all of its non-common-equity instruments
(convertible bonds and preferred equity certificates) into
ordinary shares.

After the transaction, the group has indicated that it expects
its debt to EBITDA to be about 3.5x on a reported basis.  In
S&P's view, this could lead to fully adjusted debt to EBITDA of
close to 4x.  Moreover, the group's interest coverage ratio
should significantly improve, stemming from reduced cash interest
expenses, to less than EUR10 million annually compared to
EUR29 million paid in 2016.

If the IPO completes, S&P could revise its assessment of the
group's financial policy if S&P considers that, under the new
share ownership structure, the group is willing to sustain debt
to EBITDA below 5x.

"In our opinion, Alain Afflelou's strong financial results as of
fiscal year-end 2016 (July 31), reflect the group's efforts to
reduce its cost base at the directly-owned store level.  It also
reflects the higher profit contribution from its franchisees
within the healthcare networks; this had a positive effect on the
group's top line after a very tough 2015.  Despite a slight
erosion of its operating margins -- stemming from pricing
pressure coming from the franchise model expansion within the
healthcare networks -- the group's EBITDA increased strongly in
2016," S&P said.

S&P's 'B' corporate credit rating continues to reflect its view
that Alain Afflelou's franchise business model remains resilient
despite the still-tough consumer environment in France and Spain,
where the group has the majority of its operations.  This should
help it achieve positive free cash flow generation in 2016
despite challenging conditions for Alain Afflelou's directly
owned stores.

S&P expects to resolve the CreditWatch after Alain Afflelou
completes the IPO, which is likely to occur over the next
quarter. S&P will likely raise the corporate credit rating on the
group by at least one notch if the IPO is successful and the
group is able to reduce debt as planned.  Before resolving the
CreditWatch, S&P will assess both Alain Afflelou's capital
structure and financial policies following the IPO, together with
any potential changes to the group's use of proceeds.


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I R E L A N D
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CLARINDA PARK: Moody's Assigns B2 Rating to Class E Notes
---------------------------------------------------------
Moody's Investors Service announced that it has assigned these
definitive ratings to notes issued by Clarinda Park CLO
Designated Activity Company:

  EUR239,000,000 Class A-1 Senior Secured Floating Rate Notes due
   2029, Definitive Rating Assigned Aaa (sf)
  EUR52,000,000 Class A-2 Senior Secured Floating Rate Notes due
   2029, Definitive Rating Assigned Aa2 (sf)
  EUR21,000,000 Class B Senior Secured Deferrable Floating Rate
   Notes due 2029, Definitive Rating Assigned A2 (sf)
  EUR22,000,000 Class C Senior Secured Deferrable Floating Rate
   Notes due 2029, Definitive Rating Assigned Baa2 (sf)
  EUR25,000,000 Class D Senior Secured Deferrable Floating Rate
   Notes due 2029, Definitive Rating Assigned Ba2 (sf)
  EUR11,000,000 Class E Senior Secured Deferrable Floating Rate
   Notes due 2029, Definitive Rating Assigned B2 (sf)

                         RATINGS RATIONALE

Moody's definitive rating of the rated notes addresses the
expected loss posed to noteholders by legal final maturity of the
notes in 2029.  The definitive 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, Blackstone / GSO
Debt Funds Management Europe Limited, has sufficient experience
and operational capacity and is capable of managing this CLO.

Clarinda Park CLO Designated Activity Company is a managed cash
flow CLO.  At least 96% of the portfolio must consist of secured
senior obligations and up to 4% of the portfolio may consist of
unsecured senior loans, second lien loans, mezzanine obligations,
high yield bonds and/or first lien last out loans.  The portfolio
is expected to be 62% ramped up as of the closing date and to be
comprised predominantly of corporate loans to obligors domiciled
in Western Europe.  This initial portfolio will be acquired by
way of participations which are required to be elevated as soon
as reasonably practicable. The remainder of the portfolio will be
acquired during the three month ramp-up period in compliance with
the portfolio guidelines.

Blackstone / GSO Debt Funds Management Europe Limited 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 impaired
obligations, and are subject to certain restrictions.

In addition to the six classes of notes rated by Moody's, the
Issuer issued EUR45,100,000 of subordinated notes.  Moody's will
not assign a rating to this class of notes.

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

Loss and Cash Flow Analysis:

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

Moody's used these base-case modeling assumptions:

  Par Amount: EUR400,000,000
  Diversity Score: 40
  Weighted Average Rating Factor (WARF): 2800
  Weighted Average Spread (WAS): 4.1%
Weighted Average Coupon (WAC): 5.25%
  Weighted Average Recovery Rate (WARR): 43.0%
  Weighted Average Life (WAL): 8 years

Stress Scenarios:

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

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

Percentage Change in WARF: WARF +30% (to 3640 from 2800)
Ratings Impact in Rating Notches:
  Class A-1 Senior Secured Floating Rate Notes: -1
  Class A-2 Senior Secured Floating Rate Notes: -3
  Class B Senior Secured Deferrable Floating Rate Notes: -3
  Class C Senior Secured Deferrable Floating Rate Notes: -2
  Class D Senior Secured Deferrable Floating Rate Notes: -1
  Class E Senior Secured Deferrable Floating Rate Notes: -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
ratings:

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


CLARINDA PARK: S&P Assigns B- Rating to Class E Notes
-----------------------------------------------------
S&P Global Ratings assigned its credit ratings to Clarinda Park
CLO DAC's class A-1, A-2, B, C, D, and E senior secured notes.
At closing, the issuer also issued unrated subordinated notes.

The transaction is a cash flow collateralized loan obligation
(CLO), securitizing a portfolio of primarily senior secured loans
granted to speculative-grade corporates.  Blackstone/GSO Debt
Funds Management Europe Ltd. manages the transaction.

The issuer purchased more than 50% of the effective date
portfolio from Blackstone/GSO Corporate Funding Designated
Activity Company (BGCF).  The assets from BGCF that weren't
settled on the closing date are subject to participations.  The
transaction documents require that the issuer and BGCF use
commercially reasonable efforts to elevate the participations by
transferring to the issuer the legal and beneficial interests in
such assets as soon as reasonably practicable.

Under the transaction documents, the rated notes pay quarterly
interest unless a frequency switch event occurs.  Following this,
the notes permanently switch to semiannual interest payments.

The portfolio's reinvestment period ends four years after
closing, and the portfolio's maximum average maturity date is
eight years after closing.

On the effective date, S&P understands that the portfolio will
represent a well-diversified pool of corporate credits, with a
fairly uniform exposure to all of the credits.  Therefore, S&P
has conducted its credit and cash flow analysis by applying its
criteria for corporate cash flow collateralized debt obligations.

In S&P's cash flow analysis, it has used the portfolio target par
amount of EUR400.0 million, the covenanted weighted-average
spread of 4.15%, the weighted-average coupon of 5.25%, and the
covenanted weighted-average recovery rates at each rating level.

Citibank N.A. (London Branch) is the bank account provider and
custodian.  The issuer entered into perfect asset swaps with
various counterparties to hedge the foreign-exchange risk on non-
euro assets.  The participants' downgrade remedies are in line
with S&P's counterparty criteria.

The issuer is in line with S&P's bankruptcy remoteness criteria.

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

RATINGS LIST

Clarinda Park CLO Designated Activity Company
EUR415.1 mil secured floating- and fixed-rate notes
                                                Amount
Class           Rating                         (mil, EUR)
A-1             AAA (sf)                       239.0
A-2             AA (sf)                        52.0
B               A (sf)                         21.0
C               BBB (sf)                       22.0
D               BB (sf)                        25.0
E               B- (sf)                        11.0
Sub             NR                             45.1

NR--Not rated


WEATHERFORD INTERNATIONAL: S&P Lowers CCR to 'B+', Outlook Neg.
---------------------------------------------------------------
S&P Global Ratings lowered its corporate credit rating on
Ireland-based diversified oilfield services company Weatherford
International plc to 'B+' from 'BB-'.  The outlook is negative.

At the same time, S&P lowered its issue-level ratings on the
company's secured notes and its senior unsecured guaranteed
credit facilities to 'BB' from 'BB+'.  The recovery rating on
this debt remains '1', reflecting S&P's estimate of very high
(90% to 100%) recovery to creditors in the event of a payment
default.  S&P also lowered its issue-level ratings on the
company's senior unsecured debt to 'B+' from 'BB-'.  The recovery
rating on this debt remains '3', reflecting S&P's estimate of
meaningful (50% to 70%, lower half of the range) recovery to
creditors in the event of a payment default.

In addition, S&P assigned a 'B+' issue-level rating and '3'
recovery rating (50% to 70%, lower half of the range) to the
company's new $500 million senior unsecured notes due 2024.

"The downgrade reflects our revised free operating cash flow
estimates for Weatherford following weaker-than-anticipated cash
inflows in the third quarter," said S&P Global Ratings credit
analyst Carin Dehne-Kiley.

The negative outlook reflects S&P's view that Weatherford's
credit measures could remain below S&P's expectations for the
rating in 2017, unless the market recovers or the company takes
steps to reduce total debt, or that liquidity could deteriorate.

S&P could lower the rating if it expected Weatherford's FFO/debt
to remain well below 12% for a sustained period.  This would most
likely occur if revenues declined by more than S&P currently
anticipates or the company's margins did not improve.  S&P could
also lower the rating if the company's liquidity deteriorated,
which could occur if it were unable to maintain compliance with
its covenants or get a waiver from its banks.

S&P could revise the outlook to stable if it expected Weatherford
to bring and maintain FFO/debt closer to 12% for a sustained
period, which would most likely occur if the company were able to
improve operating margins in conjunction with an industry
recovery.


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K A Z A K H S T A N
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BANK OF ASTANA: S&P Affirms 'B/B' Counterparty Credit Ratings
-------------------------------------------------------------
S&P Global Ratings said that it had affirmed its 'B/B' long- and
short-term counterparty credit ratings and 'kzBB' Kazakhstan
national scale rating on Kazakhstan-based Bank of Astana and
removed the ratings from CreditWatch, where they were placed with
negative implications on April 25, 2016.

S&P subsequently withdrew all these ratings at Bank of Astana's
request.

The outlook at the time of withdrawal was negative.

The affirmation of the ratings reflected the improvement in the
bank's capitalization, as measured by S&P's risk-adjusted capital
(RAC) ratio, in the third quarter of 2016 to 8.9% from 6.9% at
mid-2016.

However, management was unable to reduce risk-weighted assets
(RWAs) in the third quarter of 2016, which was one of the two key
elements of its strategy to strengthen capitalization.  On the
contrary, total loans increased by an additional 7% in the third
quarter of 2016 on top of a 24% increase in the first half of
2016.  To compensate for management's inability to reduce RWAs,
shareholders injected Kazakhstan tenge (KZT) 10 billion (about
US$30 million) of capital in the third quarter, significantly
more than the KZT4 billion originally planned.

Therefore, S&P sees significant execution risks in reducing RWAs
in the fourth quarter of 2016.  Management targets reducing
loans, guarantees, and interbank exposures by about KZT44 billion
in the fourth quarter of 2016.  S&P views these actions as
somewhat negative for the development of the bank's franchise and
profitability.  Furthermore, given the bank's broader objective
of strong, profitable growth, S&P anticipates that such
deleveraging and derisking might prove to be transitory.

The ratings on Bank of Astana reflected the 'bb-' anchor, S&P's
starting point for rating commercial banks operating in
Kazakhstan.  They also reflected the bank's weak business
position, due to its small asset base and modest franchise in the
Kazakh banking sector.  S&P's moderate risk position assessment
reflected the risks associated with managing rapid loan growth
and S&P's expectation of moderate asset quality deterioration as
loans season amid the challenging economic environment.  S&P
assessed the bank's funding as average and its liquidity as
adequate, in line with that of other small rated Kazakh banks.

The long-term rating on the bank was at the level of S&P's
assessment of its stand-alone credit profile, because it
considers the bank to be of low systemic importance and S&P do
not expect it will receive support from the Kazakh government.

The negative outlook on the long-term rating on Bank of Astana at
the time of the withdrawal reflected S&P's significant doubts
about management's execution of its budget and strategic plans.


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N O R W A Y
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LOCK LOWER: Moody's Continues to Review B2 CFR for Upgrade
----------------------------------------------------------
Moody's Investors Service has announced the continuation of the
review on the B2 corporate family rating of Lock Lower Holdings
AS, the parent company of Lindorff AB (Lindorff), and changed the
direction to review for upgrade from direction uncertain.  The
agency also placed on review for upgrade the B2 rating assigned
to the five senior secured notes with a combined amount of EUR1.5
billion and the B1 rating assigned to the EUR430 million
revolving credit facility (RCF) issued by Lock AS, a subsidiary
of Lock Lower Holdings AS.  Additionally, Moody's placed on
review for upgrade the Caa1 rating assigned to the two senior
notes with a combined amount of EUR447 million issued by Lock
Lower Holdings AS.

Today's rating action was prompted by Lindorff's announcement on
14 of November indicating its plans to merge with Intrum Justitia
(unrated), a company operating in the credit management services
industry across Europe.  The transaction is expected to close in
the second quarter of 2017.

                         RATINGS RATIONALE

Lindorff is one of the largest receivables management companies
in Europe, operating in 13 countries across the region.  The
majority of the firm's revenues are generated by its debt
collection and debt purchasing businesses supplemented by income
from the provision of other related administrative services to
third parties.  Intrum Justitia is a competitor of Lindorff,
operating in the same industry across 20 European countries.  It
was founded in 1923 in Sweden and is listed on Nasdaq Stockholm
stock exchange since 2002.

Moody's believes that the proposed merger is credit positive for
Lindorff's bondholders because: (i) it has a valid strategic
rationale and will create the largest credit management company
in Europe, operating in 23 countries with 8,400 staff; (ii) given
the overlap in some countries and the similarities in the
business models, the new firm could potentially achieve
significant synergies in costs and revenues; and (iii) the
combined entity should have a much lower leverage compared to
Lindorff's current levels.  According to the joint announcement
by the two companies, the combined entity should have a gross
debt/Adjusted EBITDA of 3.7x as of end-9M2016 compared to
Lindorff's 5.4x (on a pro-forma basis).

The agency believes that the main risks associated to the merger
are executional and operational risks, which are common to all
merger transactions.  The cultural differences between the
companies which could negatively impact the merger are not
expected to be significant because of: (i) the Nordic heritage
common to both companies; (ii) strong similarities in the
business model; and (iii) in the time frame during which the
transaction will close, the senior management of both companies
will remain to ensure a smooth transition.

As part of the announcement, Lindorff and Intrum Justitia stated
that a new financing structure will be put in place to partially
refinance existing debt structures (including substantially all
of Lindorff's financial indebtedness including its senior secured
and senior notes and RCF).  Commitments for a EUR3.4 bil. long
term bridge facility and a EUR850m RCF have been obtained from a
group of banks.

Moody's does not rate Intrum Justitia.  Consequently, the review
will focus on: (i) obtaining a better understanding of Intrum
Justitia's business model and further investigating the strategic
rationale behind the proposed merger; (ii) collecting more
information on the new debt structure of the combined entity and
on its pro-forma financial metrics; and (iii) reviewing the new
company's business and financial strategies going forward.

                 WHAT COULD CHANGE THE RATINGS UP/DOWN

Lindorff's ratings could be upgraded as a result of the following
elements: (i) a significant reduction in the company's level of
leverage with debt-to-adjusted EBITDA falling below 4.75x or
tangible common equity over tangible managed assets increasing to
6%; (ii) a sustained track record of increasing gross collections
while maintaining a low level of complaints and legal actions,
especially in new markets; (iii) an improved liquidity profile
with additional headroom and a track record of moderate use of
bank facilities; and (iv) improvement in transparency and risk
management following a potential listing in public markets.

The company's ratings could be downgraded because of: (i) a
significant deterioration in income (after interest expense) and
cash flow from operations, due to (for example) weak collections
or underperforming portfolio acquisitions; (ii) an increase in
leverage or sustained decline in operating performance, leading
to a debt-to-adjusted EBITDA ratio well above 5.5x for a
prolonged period; or (iii) a significant decline in interest
coverage, with an adjusted EBITDA-to-interest expense ratio below
1.0x.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Finance
Companies published in October 2015.

LIST OF AFFECTED RATINGS

On Review for Upgrade from Review Direction Uncertain:

Issuer: Lock AS
  Senior Secured Bank Credit Facility, currently B1 Ratings Under
   Review
  Senior Secured Regular Bond/Debenture, currently B2 Ratings
   Under Review

Outlook Actions:

Outlook, remains at Rating Under Review

Issuer: Lock Lower Holdings AS
  LT Corporate Family Rating, currently B2 Ratings Under Review
  Senior Unsecured Regular Bond/Debenture, currently Caa1 Ratings
   Under Review

Outlook Actions:
  Outlook, remains at Rating Under Review


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


BANK BPH: Moody's Assigns Ba2 Issuer Ratings, Outlook Stable
------------------------------------------------------------
Moody's Investors Service has assigned first-time Ba2/Not Prime
long- and short-term issuer ratings to Bank BPH S.A. (BPH).
Concurrently, the rating agency has withdrawn BPH's Ba2/Not Prime
deposits ratings.  The outlook on BPH's long-term issuer ratings
is stable while the previous outlook on the bank's deposit
ratings was negative.

Today's rating action was triggered by the completion of the sale
and spin-off of BPH's core business to Polish Alior Bank S.A.
(Alior; unrated) on 4 November 2016, following which BPH was put
into wind-down by its owner, General Electric Company (GE; A1,
stable) in the context of the group's global streamlining and
downsizing of its financial services activities.  The rating
agency's assignment of issuer ratings while simultaneously
withdrawing the deposit ratings reflects the transfer of all of
BPH's deposits to Alior while ceasing to originate deposits.

BPH's baseline credit assessment (BCA) has also been downgraded
to b2 from ba3, reflecting the much reduced balance-sheet and low
profitability of its operations, which are fully wholesale
funded, elevating the downside risks to BPH's standalone profile
during the prolonged wind-down period.  However, its ba2 adjusted
BCA, which now incorporates very high assumptions from affiliate
support of the bank's owner GE, has been affirmed.  BPH's
counterparty risk assessment (CRA) has been downgraded to
Ba2(cr)/Not Prime(cr) from Baa2(cr)/Prime-2(cr), reflecting
Moody's discontinuation of the application of its Loss-Given
Failure (LGF) analysis on BPH.

                         RATINGS RATIONALE

   -- BCA DOWNGRADE REFLECTS CONCENTRATED ASSET RISK DURING THE
      WIND-DOWN PERIOD

The b2 BCA reflects BPH's highly concentrated loan-book --
primarily in Swiss Franc mortgages -- which are highly sensitive
to currency risk, as well as the low profitability of the bank's
operations, which we expect to remain under pressure due to the
wind-down and regulatory charges.  BPH has moderate
capitalization and strong leverage.  However, its current sound
loss absorption cushion is highly vulnerable to any regulatory
changes in regards to foreign-currency mortgages.  Post spin-off,
BPH's balance-sheet is approximately 13% financed by equity and
the remainder is fully funded by GE, with maturities up to 2022.
The inter-group funds reduce the bank's high refinancing risk and
brings an element of stability to its BCA.

   -- ASSIGNMENT OF ISSUER AND WITHDRAWAL OF DEPOSIT RATINGS; AND
      PARENTAL SUPPORT

BPH maintains its bank license; however, after the spin-off the
bank will not take any deposits.  As a result, Moody's has
withdrawn the bank's deposit ratings and assigned issuer ratings.
The Ba2 issuer ratings are aligned at the same level as BPH's
adjusted BCA which benefits from three-notches of uplift above
its b2 BCA.

The affirmed ba2 adjusted BCA captures our assumption of a very
high likelihood of affiliate support to BPH from GE, reflecting
the public statements by GE and BPH in regards to GE's continuing
support of its subsidiary to ensure BPH's orderly wind-down.

Due to the entirely intergroup nature of the funding, without any
reliance on deposits and with full GE ownership, a capital
injection and/or continuing liquidity support of the parent would
be the most likely measures taken to preserve BPH's solvency or
liquidity should the bank's performance deteriorate.  As a
result, we also believe there is a low probability of a
resolution for BPH under the European Directive on Bank Recovery
and Resolution (BRRD) which has been transposed in Poland.
Therefore, Moody's do not apply our LGF analysis and no
additional uplift is incorporated into the bank's senior ratings
or obligations.

BPH's CRA has been downgraded to Ba2(cr)/Not-Prime(cr) from
Baa2(cr)/Prime-2(cr) and is now aligned with its Adjusted BCA, as
it no longer benefits from the protection of junior deposits the
bank had prior to the spin-off of its core operations, in
accordance with our Advanced LGF analysis at the time.

   --- OUTLOOK CHANGED TO STABLE

Moody's changed the outlook on BPH's ratings to stable from
negative to reflect the stable outlook on the ratings of GE, the
parent company's strong commitment to BPH, and the strong
regulatory oversight from the Polish Financial Supervision
Authority.

   WHAT COULD MOVE THE RATINGS UP/DOWN

Given the stable outlook, and wind-down mode of the bank, upward
pressure on BPH's ratings is unlikely in the near term.  An
explicit, unconditional, guarantee of the bank's liabilities
would result in closer alignment of BPH's issuer ratings with
those of its parent.

A downgrade of the bank's ratings could materialise if BPH's
intrinsic financial strength weakens due to its performance under
wind-down or any legislative changes eroding its solvency.  In
addition, a diminishing parental commitment to the bank would
lead to negative pressure on the affiliate support which we
currently assign and could impact BPH's ratings.

LIST OF AFFECTED RATINGS

  Long-Term Issuer Ratings (Foreign Currency and Domestic
   Currency), assigned at Ba2
  Short-Term Issuer Ratings (Foreign Currency and Domestic
   Currency), assigned at Not Prime
  Long-Term Bank Deposits (Foreign Currency and Domestic
   Currency), withdrawn, previously rated Ba2
  Short-Term Bank Deposits (Foreign Currency and Domestic
   Currency), withdrawn, previously rated Not Prime
  Adjusted BCA affirmed at ba2
  Standalone BCA downgraded to b2 from ba3
  CRA downgraded to Ba2(cr)/Not Prime(cr) from Baa2(cr)/Prime-
   2(cr)
  Outlook changed to Stable from Negative

                      PRINCIPAL METHODOLOGY

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


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


CB CREDO: Liabilities Exceed Assets, Assessment Shows
-----------------------------------------------------
The provisional administration of LLC CB CREDO FINANCE, appointed
by virtue of Bank of Russia Order No. OD-2406, dated July 28,
2016, following revocation of its banking license detected in the
course of examination of the bank's financial standing the facts
of extending loans to borrowers which bear the evidence of moving
out the bank's assets or concealing the facts of already moved
out assets, according to the press service of the Central Bank of
Russia.

The provisional administration also found out that prior to the
license cancellation the bank management carried out transactions
bearing the evidence of moving out liquid assets worth about
RUR275 million through exchanging marketable securities to
promissory notes of companies not involved in real financial and
business operations.

According to estimates by the provisional administration, the
total asset value of LLC CB CREDO FINANCE does not exceed RUR89
million, while its liabilities to creditors amount to RUR95
million.

On September 20, 2016, the Court of Arbitration of the Republic
of Dagestan took a decision to recognize LLC CB CREDO FINANCE
insolvent (bankrupt) with the state corporation Deposit Insurance
Agency appointed as a receiver.

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


COMMERCIAL BANK EXPRESS-CREDIT: Put on Provisional Administration
-----------------------------------------------------------------
The Bank of Russia, by its Order No. OD-3983, dated November 16,
2016, revoked the banking license of credit institution
Commercial Bank Express-credit (stock company) from November 16,
2016, according to the press service of the Central Bank of
Russia.

The Bank of Russia took such an extreme measure -- revocation of
the banking license -- because of the credit institution's
failure to comply with federal banking laws and Bank of Russia
regulations, because the capital adequacy ratio of this credit
institution was below 2% and its equity capital dropped below the
minimum authorized capital value established by the Bank of
Russia as of the date of the state registration of the credit
institution, and taking into account the repeated application
within a year of measures envisaged by the Federal Law "On the
Central Bank of the Russian Federation (Bank of Russia)".

Commercial Bank Express-credit (stock company) failed to
adequately assess the risks assumed as the quality of assets was
bad.  The competent assessment of credit risk at the supervisor's
request revealed a full loss of the bank's equity capital. The
credit institution was involved in dubious payable-through
operations.

The management and owners of Commercial Bank Express-credit
(stock company) did not take proper action to bring its
activities back to normal.  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-3984, dated November 16,
2016, appointed a provisional administration to Commercial Bank
Express-credit (stock company) for the period until the
appointment of a receiver pursuant to the Federal Law "On the
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.

Commercial Bank Express-credit (stock company) is a member of the
deposit insurance system. The revocation of the banking license
is an insured event as stipulated by Federal Law No. 177-FZ "On
the Insurance of Household Deposits with Russian Banks" in
respect of the bank's retail deposit obligations, as defined by
law.  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
not more than RUR1.4 million per depositor.

According to the financial statements, as of November 1, 2016,
Commercial Bank Express-credit (stock company) ranked 303rd by
assets in the Russian banking system.


SISTEMA JSFC: Moody's Withdraws Ba3 CFR for Business Reasons
------------------------------------------------------------
Moody's Investors Service has withdrawn the Ba3 corporate family
rating and the Ba3-PD probability of default rating of Sistema
Joint Stock Financial Corporation, as well as the stable outlook.

                         RATINGS RATIONALE

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

The last rating action on Sistema was taken on Jan. 22, 2016,
when Moody's upgraded the company's CFR to Ba3 from B1 and its
PDR to Ba3-PD from B1-PD, with stable outlook.

Sistema is one of Russia's largest public conglomerates with
holdings in the telecoms, technology, banking, media, retail,
transportation and other sectors.  The founder of the company,
Mr. Vladimir Evtushenkov, holds 64.2% of Sistema's common shares.
The remainder is held by minority shareholders and is in free
float.  In 2015, Sistema reported consolidated revenues of
RUB708.6 billion and adjusted OIBDA of RUB176.4 billion.


SPC KATREN: S&P Affirms 'BB-' CCR, Outlook Stable
-------------------------------------------------
S&P Global Ratings affirmed its 'BB-' long-term and 'B' short-
term corporate credit ratings on Russian pharmaceutical
distributor SPC Katren CJSC.  The outlook is stable.

At the same time, S&P affirmed the 'ruAA-' Russia national scale
rating on Katren.

The affirmation reflects Katren's position as the largest player
in the Russian pharmaceutical wholesale market, its strong store
network of distribution centers across Russia, and its good
growth prospects.  Katren benefits from a low-cost operating
model with one of the lowest ratios of operating expenses to
sales -- 4.1% -- among major Russian pharmaceutical distributors.
Moreover, its cost base is flexible, because two-thirds of labor
costs, a key operating expense item, are variable.

Concurrently, declining demand for pharmaceuticals in Russia,
owing to lower real disposable incomes, is putting pressure on
the company's profitability.  S&P anticipates that the EBITDA
margin will contract to less than 1.5% in 2016 and stay at about
that level in 2017-2018, compared with 4.0% in 2015.  Still,
Katren's efficient operations help it remain profitable and
protect its market share.  The pharmaceutical distribution market
in Russia is competitive and still in the process of
consolidating.  It also depends more on consumer spending than
markets in many Western countries, because state health insurance
does not reimburse the cost of drugs purchased in pharmacies for
most of the population.

S&P now expects that Katren's leverage will be higher this year,
in the 2.0x-2.5x range, owing to lower EBITDA and somewhat higher
working capital because the company is providing longer payment
terms to one of its customer segments, retail pharmacies.  This
is in line with the company's revised financial policy, under
which it maintains reported debt to EBITDA at less than 2.0x,
excluding our adjustment for operating leases and financial
guarantees for related parties.  S&P has consequently revised its
assessment of the company's financial risk profile to
intermediate from modest.

At the same time, Katren now has a longer track record of limited
use of its funding to support its sister companies and other
projects of its shareholder, Russian businessman Mr. Leonid
Konobeev.  Moreover, Mr. Konobeev's residential development
project financing needs are covered by recurring dividend streams
from Katren and don't require extra funding.  Also, S&P views
management's operational effectiveness as positive, supported by
its track record of improving operating efficiency offsetting
negative market trends.  S&P expects the company will maintain
its commitment to the current financial policy.  Existing checks
and balances in the company's corporate governance are
represented by the European Bank for Reconstruction and
Development's 15% minority stake in Katren's parent company.  S&P
has therefore revised its assessment of the company's financial
policy to neutral from negative.

S&P considers that the company's credit standing is weaker that
its Russian and global peers' with ratings in the 'BB' category.
S&P consequently applies a negative modifier under its comparable
ratings analysis for Katren.

The stable outlook on Katren is underpinned by S&P's forecast
that the ongoing investment into working capital and the cost
efficient business model should enable the company to maintain
competitiveness and perform in line with S&P's base-case
assumptions.  In particular, S&P expects sound revenue growth,
and EBITDA margins stabilizing at around 1.5%, translating into
the ratio of debt to EBITDA below 3x over the next two years.

S&P might take a negative rating action on Katren if debt to
EBITDA were to exceed 3x because of weaker operating performance
brought about by unfavorable industry or macroeconomic trends.
Additionally, rating pressure could rise if the company's
external financial flexibility deteriorated and its overall
liquidity management became more aggressive.

S&P sees an upside scenario for Katren as remote given the
challenging industry conditions.


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


BANCO MARE: Fitch Assigns 'BB-' Rating to EUR175MM Sub. Notes
-------------------------------------------------------------
Fitch Ratings has assigned Banco Mare Nostrum, S.A.'s (BMN) issue
of EUR175 mil. subordinated notes due 2026 a final rating of
'BB-'.

The final rating is in line with the expected rating Fitch
assigned to the notes on Nov. 10, 2016.

                         KEY RATING DRIVERS

SUBORDINATED DEBT

The subordinated notes are notched down once from BMN's 'bb'
Viability Rating (VR).  The notching reflects the notes' greater
expected loss severity relative to senior unsecured debt.  These
securities are subordinated to all senior unsecured creditors.
Fitch did not apply additional notching for incremental non-
performance risk relative to the VR given that any loss
absorption would only occur once the bank reaches the point of
non-viability.

                       RATING SENSITIVITIES

SUBORDINATED DEBT

The subordinated notes' rating is sensitive to changes in BMN's
VR.  The rating is also sensitive to a widening of notching if
Fitch's view of the probability of non-performance on the bank's
subordinated debt relative to the probability of the group
failing, as measured by its VR, increases or if Fitch's view of
recovery prospects changes.


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


ABENGOA CONCESSIONS: Seeks U.S. Recognition of U.K. Proceeding
--------------------------------------------------------------
Abengoa Concessions Investments Limited has sought bankruptcy
protection by commencing a voluntary petition under Chapter 15 of
the Bankruptcy Code.

The petition seeks, among other things, recognition of a company
voluntary arrangement proposed by the directors of Abengoa
pursuant to Part 1 of the Insolvency Act 1986 to the extent that
the CVA is duly approved by the requisite majority of creditors
at the creditors' meeting in accordance with applicable English
law.

Upon recognition of the UK Proceeding as a foreign main
proceeding, the Foreign Debtor is automatically entitled to the
protections of the automatic stay of Section 362 of the
Bankruptcy Code.

The Foreign Debtor's center of main interest is in the United
Kingdom, and it has its nerve center in England.  Specifically,
the Foreign Debtor is formed under English law and has its
registered offices in London, England, and, therefore, England is
presumed to be the Foreign Debtor's center of main interest.

Abengoa has its principal assets in the United States by virtue
of the fact that it has deposited a retainer with DLA Piper LLP
(US) in which it has an ownership interest.  These funds are held
in a Wells Fargo bank account in the state of Delaware.
Additionally, Abengoa is a party to various financial contracts,
like indentures, governed by the laws of the State of New York.

As of the Petition Date, the CVA is pending approval by creditors
at the creditors' meeting to be held at Linkaters LLP, 1 Silk
Street, London, EC2Y 8HQ at 10:00 a.m. (London time) on Nov. 24,
2016, and by members at the members' meeting to be held at the
same location on the same date at 11:00 a.m. (London time).

If implemented, the CVA will, among other things:

   (a) provide a mechanism whereby liabilities of the Foreign
       Debtor, as guarantor, in respect of certain loans and
       notes borrowed or issued by other entities within the
       Abengoa Group owed to creditors who do not accede to the
       Master Restructuring Agreement will be subject to a write-
       down of 97 per cent to reflect the compromise of the
       relevant principal obligations of those loans and notes
       owed to those creditors, which will be implemented by the
       Homologation of the Master Restructuring Agreement;

   (b) amend the terms and conditions of the Guarantee
       Obligations; and

   (c) prevent certain creditors from making any demand, bringing
       any claim or taking (or voting in favour of) any
       enforcement action in any jurisdiction whatsoever in a
       manner inconsistent with the Compromised Principal
       Obligations against the Foreign Debtor's co-guarantors of
       the relevant loans and notes.

The Chapter 15 case is pending in the U.S. Bankruptcy Court for
the District of Delaware (Bankr. D. Del. Case No. 16-12590)
before Judge Kevin J. Carey.

DLA Piper LLP (US) represents as counsel to the Debtor.


ABENGOA CONCESSIONS: Chapter 15 Case Summary
--------------------------------------------
Chapter 15 Petitioner: Anders Christian Digemose

Chapter 15 Debtor: Abengoa Concessions Investments Limited
                   St. Martin's House
                   1 Lyric Square
                   London W6 0NB
                   UK

Chapter 15 Case No.: 16-12590

Chapter 15 Petition Date: November 16, 2016

Court: United States Bankruptcy Court
       District of Delaware (Delaware)

Judge: Hon. Kevin J. Carey

Chapter 15 Petitioner's Counsel: R. Craig Martin, Esq.
                                 Maris J. Kandestin, Esq.
                                 DLA PIPER LLP (US)
                                 1201 North Martket Street
                                 21st Floor
                                 Wilmington, DE 19801
                                 Tel: 302-468-5655
                                 Fax: 302-778-7834
                                 Email:
                                 craig.martin@dlapiper.com
                                 Maris.Kandestin@dlapiper.com

                                   - and -

                                 Richard A. Chesley, Esq.
                                 DLA PIPER LLP (US)
                                 203 North LaSalle Street
                                 Suite 1900
                                 Chicago, IL 60601-1293
                                 Tel: 312.368.4000
                                 Fax: 312.236.7516
                                 Email:
                                 Richard.Chesley@dlapiper.com

Estimated Assets: Not Indicated

Estimated Debts: Not Indicated


CO-OPERATIVE BANK: Low Interest Rates Spur 200 Job Cuts
-------------------------------------------------------
Ben Martin at The Daily Telegraph reports that Co-operative Bank
has blamed the damage caused by low interest rates on its
finances for axing a further 200 jobs.

The troubled lender, which is in the midst of a five-year
turnaround plan and has about 4,200 staff, informed employees on
Nov. 17 of the redundancies and hopes to complete the cuts by the
end of March, The Daily Telegraph relates.

The job losses will mainly fall on management positions and head
office roles and so will affect staff working in Manchester and
Stockport, The Daily Telegraph discloses.  The lender does not
plan to close any branches as part of the latest round of cuts,
which will take the total number of jobs lost since 2013 to about
2,700, The Daily Telegraph states.

Co-op Bank warned at its third-quarter results a week ago that
low rates were hampering its recovery efforts, The Daily
Telegraph relays.

The lender almost collapsed three years ago after its 2009 merger
with Britannia building society proved a catastrophic deal and
its inexperienced former chairman, Paul Flowers, became embroiled
in a drugs scandal, The Daily Telegraph recounts.

The Co-operative Bank is a retail and commercial bank in the
United Kingdom, with its headquarters in Balloon Street,
Manchester.


EUROPEAN DEV'T: Severe Cash Flow Problems Prompt Administration
---------------------------------------------------------------
Gareth Mackie at The Scotsman reports that European Development
Company, the owner of three Holiday Inn hotels across Aberdeen
and Edinburgh, has fallen into administration.

According to The Scotsman, administrators at FRP Advisory said
that EDC had fallen victim to "severe cash flow problems" sparked
by the downturn in the oil and gas sector, along with "intense"
price competition from new entrants to Aberdeen's hotel market.

Turnover across the three hotels -- which employ 136 people,
including 117 in Aberdeen -- is about GBP11 million, The Scotsman
discloses.  FRP partners and joint administrators Iain Fraser --
iain.fraser@frpadvisory.com -- and Tom MacLennan --
tom.macLennan@frpadvisory.com -- will continue to trade the
hotels as normal while seeking buyers, The Scotsman says.  There
are no immediate plans for redundancies at the establishments,
The Scotsman notes.

European Development Company is based in Aberdeen.


HYPERION INSURANCE: S&P Affirms 'B' Rating, Outlook Stable
----------------------------------------------------------
S&P Global Ratings said that it has affirmed its 'B' rating on
Hyperion Insurance Group Ltd.  The outlook is stable.

At the same time, S&P affirmed the 'B' issue ratings on its
$750 million term loan (to be upsized to $850 million) and on its
รบ85 million revolving credit facility (RCF).  The recovery rating
on the loan and RCF is unchanged at '4', indicating S&P's
expectation of recovery in the higher half of the 30%-50% range
for creditors in the event of a payment default.

The affirmation follows Hyperion's announced intention to issue a
$100 million add-on to its $750 million term loan facility.  The
expiration of the majority of Hyperion's acquisition-related
deferred and contingent liabilities in financial year 2017,
coupled with its strong organic and inorganic revenue and EBITDA
growth in 2016, means that the company can accommodate the
additional debt within the current rating level under S&P's
forecasts--albeit with limited rating headroom to issue
additional incremental debt.

Hyperion intends to use the proceeds to repay the GBP38 million
drawn-down portion under its GBP85 million RCF, which the company
had used to fund additional restructuring and to pay the
GBP17 million cash portion of the GBP34 million acquisition of
German retail insurance broker Euroassekuranz Versicherungsmakler
AG in September 2016.  The remainder of the add-on will be used
for general corporate purposes, including part-funding the
GBP94 million of deferred consideration that the company is due
to pay in 2017 under previous acquisition agreements.

For the financial year (FY) ending Sept. 30, 2016, Hyperion's S&P
Global Ratings-adjusted debt was about GBP774 million.  This
amount comprises reported debt of about GBP633 million plus
operating lease adjustments of about GBP60 million, about
GBP90 million of contingent consideration linked to previous
acquisitions (including a GBP23 million liquidity put option),
and about GBP60 million of deferred consideration lined to
previous acquisitions, offset by about GBP70 million of surplus
cash available for debt repayment.  The increase in the $750
million term loan is largely mitigated by a reduction in
acquisition-related deferred and contingent liabilities, which
mostly expire in FY 2017.

In S&P's base case for FY 2017, it assumes:

   -- Organic revenue growth at Hyperion of about 2.5%.
   -- With full-year consolidation of FY 2016 acquisitions,
      financial year 2017 revenues forecast at GBP470 million-
      GBP475 million.
   -- Adjusted EBITDA margins of 23%-25% (including the impact of
      nonrecurring and acquisition-related costs).
   -- Cash outflow of about GBP94 million for payments of
      deferred and contingent consideration toward acquisitions
     (including RKH).

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

   -- Adjusted debt to EBITDA of 6.5x-6.8x for FY 2017 (6.3x-6.6x
      excluding liquidity put options) and 5.1x-5.5x for FY 2018.
   -- Funds from operations (FFO) cash interest coverage of about
      3.0x-3.5x in FY 2017 and 4.5x-5.0x in FY 2018.
   -- Free operating cash flow of GBP70 million-GBP75 million in
      FY 2017 and GBP75 million-GBP80 million in FY 2018.

The stable outlook reflects S&P's view that the combined group
will achieve annual organic growth of about 2.5% over the next
two years.  The stable outlook also incorporates S&P's view that
the group will not undertake any further material acquisitions or
issue additional incremental debt, which would slow S&P's
forecast reductions in leverage.

S&P could lower the rating if increased competition or loss of
key personnel were to stifle the group's revenue growth,
profitability, and cash flow generation, which could result in
sustained negative free operating cash flow and FFO cash interest
coverage declining below 2x.  S&P could also lower the rating if
the group were to undertake a further debt-financed acquisition
or if its financial policy became more aggressive.

S&P might consider an upgrade if the group can improve its credit
metrics to levels in line with an aggressive financial risk
profile, including adjusted debt to EBITDA of less than 5x.  S&P
considers such an action to be unlikely in the next 12 months as
Hyperion's adjusted debt to EBITDA remains above 8x.


===================
U Z B E K I S T A N
===================


DAVR-BANK: S&P Affirms 'B-/C' Counterparty Credit Ratings
---------------------------------------------------------
S&P Global Ratings affirmed its 'B-/C' long- and short-term
counterparty credit ratings on Uzbekistan-based Davr-Bank.  The
outlook remains stable.

The affirmation reflects S&P's view that the impact of the
decrease in Davr-Bank's capitalization, brought on by fast asset
growth, was minimalized by the bank's sound asset quality and
smaller single-name lending concentrations than its local peers.
S&P expects that the bank will maintain its capitalization and
asset quality near the current levels over the next 12-18 months.
However, S&P notes that the fast lending growth may constrain
asset quality and can be sustainable only if the bank continues
to develop its IT and risk management systems.  This is
especially relevant given the bank's recent active expansion of
retail lending.

"We revised our assessment of the bank's risk position to
moderate from weak to reflect our view that the bank has expanded
its lending book while maintaining good asset quality.  As of
Sept. 30, 2016, nonperforming loans (NPLs; loans overdue more
than 90 days) accounted for 0.8% of the total loan book.  We
expect NPLs will likely increase but not exceed 1.5% of total
loans in the next 12-18 months.  We forecast cost of risk at
around 1.5% of average loans in the same period, which is in line
with our expectations for the banking sector in Uzbekistan," S&P
said.

Davr-Bank's lending concentrations compare favorably with
domestic peers.  Exposure to the 20-largest borrowers accounted
for about 30% of the total loan book (or 85% of common equity) as
of
Sept. 30, 2016.  Also, while the bank was previously focused
predominantly on lending to and servicing the small and midsize
enterprise sector, the bank has been actively expanding its
consumer lending this year, which supports good loan portfolio
diversification.

At the same time, S&P revised its assessment of capital and
earnings of Davr-Bank to adequate from strong to reflect the
bank's decreased capital adequacy due to rapid asset growth.
S&P's risk-adjusted capital (RAC) ratio before diversification
and concentration adjustment for Davr-Bank was 11.2% at year-end
2015, and S&P forecasts it will decrease to 8.0%-10.0% in the
coming 12-18 months.  S&P's forecast assumes that the bank will
grow its gross customer loans by 35%-40% annually in 2016-2017.
Furthermore, S&P incorporates in its projections return on
average equity of about 30% in 2016 and 20%-25% in 2017.

The stable outlook reflects S&P's view that Davr-Bank will
maintain adequate capitalization and steady asset quality while
expanding its lending activities over the next 12-18 months.  The
outlook also reflects S&P's expectation that the bank's liquidity
position will remain adequate over the same period, despite
faster-than-sector-average asset growth.

"We could lower the ratings if Davr-Bank's capitalization
weakened faster than we currently anticipate, resulting in our
projected RAC ratio dropping below 7%.  This could happen if the
bank grows its lending activity much faster than we currently
expect and/or its asset quality rapidly deteriorates, weakening
the capital base because of the elevated levels of new provisions
to be created. Another negative rating action trigger could be
aggressive lending growth that is not supported by the
development of adequate IT or risk management systems.  This
could cripple asset quality, with NPL levels and credit costs
increasing above sector averages.  A pronounced deterioration of
the bank's funding and liquidity positions could also prompt a
negative rating action," S&P said.

S&P considers a positive rating action on Davr-Bank within the
next 12-18 months to be remote at this stage.


* Fitch Raises Ratings on 4 Uzbek State-Owned Banks to 'B+'
-----------------------------------------------------------
Fitch Ratings has upgraded the Long-Term Issuer Default Ratings
(IDRs) of Uzbek Industrial and Construction Bank Joint-Stock
Commercial Bank (Uzpromstroybank; UPSB), Asaka Bank, OJSC
Agrobank and Microcreditbank (MCB) to 'B+' from 'B'.  The
Outlooks are Stable.

                        KEY RATING DRIVERS

The upgrades of the four banks' Long-Term IDRs and upward
revision of their Support Rating Floors (SRFs) to 'B+' reflect
the strengthening of the sovereign's ability to provide support
to them.  Fitch's positive reassessment of the sovereign's credit
strength in turn reflects (i) Uzbekistan's economic resilience to
the regional downturn; and (ii) moderately reduced political
risks following a smooth political transition.

Average real GDP growth over last 10 years was 8.3% and is
forecast to hold up at around 6% in 2016 and 2017 despite lower
commodity prices and lower demand from Uzbekistan's main export
markets.  The state's ability to provide support in foreign
currency is also sound, due to significant sovereign foreign-
currency reserves of around USD24bn at end-2015 (equal to about
2x the banking sector's total foreign-currency liabilities or 11x
its external debt) and the only moderate potential cost of any
future foreign-currency support.

The four banks' IDRs, Support Ratings and SRFs continue to be
underpinned by potential support from the Uzbek authorities.  In
Fitch's view, the authorities would have a high propensity to
provide support, if needed, because of the state's majority
ownership; the banks' systemic importance (to a lesser extent in
MCB); tight supervision of their activities; and their policy
roles.

                       RATING SENSITIVITIES

A change in UPSB's, Asaka's, Agrobank's and MCB's support-driven
IDRs could result from a strengthening or weakening of the
sovereign's credit profile.

A change of the banks' controlling shareholder could lead to a
downgrade of their support-driven ratings.

The rating actions are:

UPSB
  Long-Term Foreign and Local Currency IDRs upgraded to 'B+' from
   'B'; Outlook Stable
  Short-Term Foreign and Local Currency IDRs affirmed at 'B'
  Viability Rating: 'b' unaffected
  Support Rating affirmed at '4'
  Support Rating Floor revised to 'B+' from 'B'

Asaka
  Long-Term Foreign and Local Currency IDRs upgraded to 'B+' from
   'B'; Outlook Stable
  Short-Term Foreign and Local Currency IDRs affirmed at 'B'
  Viability Rating: 'b' unaffected
  Support Rating affirmed at '4'
  Support Rating Floor revised to 'B+' from 'B'

Agrobank
  Long-Term Foreign and Local Currency IDRs upgraded to 'B+' from
   'B'; Outlook Stable
  Short-Term Foreign and Local Currency IDRs affirmed at 'B'
  Viability Rating: 'b-' unaffected
  Support Rating affirmed at '4'
  Support Rating Floor revised to 'B+' from 'B'

MCB
  Long-Term Foreign and Local Currency IDRs upgraded to 'B+' from
   'B'; Outlook Stable
  Short-Term Foreign and Local Currency IDRs affirmed at 'B'
  Viability Rating: 'b-' unaffected
  Support Rating affirmed at '4'
  Support Rating Floor revised to 'B+' from 'B'


===============
X X X X X X X X
===============


* EU to Limit Bank-Failure Agencies' Power to Set Debt Levels
-------------------------------------------------------------
Alexander Weber and Boris Groendahl at Bloomberg News report that
the European Union plans to constrain authorities' power to set
requirements for the loss-absorbing funds the bloc's biggest
banks must have under rules intended to end public bailouts.

According to Bloomberg, the EU is implementing global bank-
failure rules known as total loss-absorbing capacity adopted last
year by the Financial Stability Board.  The lawmakers' task is
complicated because they have to incorporate TLAC into existing
EU rules on the liabilities banks must have to absorb losses and
allow recapitalization in a crisis, Bloomberg notes.

The TLAC rules require global banking giants to issue ordinary
shares, subordinated debt and other securities equivalent to 18%
of risk-weighted assets and 6.75% of leverage exposure by 2022,
Bloomberg relays.  Thirteen EU banks, led by HSBC Holdings Plc,
are subject to TLAC, Bloomberg discloses.

Under undated draft EU legislation seen by Bloomberg, authorities
are allowed to go beyond TLAC only under specific conditions,
Bloomberg states.  This limits the discretion of resolution
authorities such as the euro area's Single Resolution Board in
setting firm-specific requirements under the EU standards known
as minimum requirement for own funds and eligible liabilities, or
MREL, according to Bloomberg.



Nov. 17
EU Reins in Bank-Failure Agencies in Setting Crisis Debt Levels
By Alexander Weber and Boris Groendahl

(Bloomberg) --
The European Union plans to constrain authorities' power to set
requirements

for the loss-absorbing funds the bloc's biggest banks must have
under rules

intended to end public bailouts.

The EU is implementing global bank-failure rules known as total
loss-absorbing

capacity adopted last year by the Financial Stability Board. The
lawmakers'

task is complicated because they have to incorporate TLAC into
existing EU

rules on the liabilities banks must have to absorb losses and
allow

recapitalization in a crisis.

The TLAC rules require global banking giants to issue ordinary
shares,

subordinated debt and other securities equivalent to 18 percent
of risk-

weighted assets and 6.75 percent of leverage exposure by 2022.
Thirteen EU

banks, led by HSBC Holdings Plc, are subject to TLAC.

Under undated draft EU legislation seen by Bloomberg, authorities
are allowed

to go beyond TLAC only under specific conditions. This limits the
discretion

of resolution authorities such as the euro area's Single
Resolution Board in

setting firm-specific requirements under the EU standards known
as minimum

requirement for own funds and eligible liabilities, or MREL.

"Some big banks continue to be thinly capitalized and therefore a
rollback in

financial regulation is not what Europe needs," Sven Giegold, a
German member

of the European Parliament, said by e-mail. "The new rules would
clip the

wings of the resolution authorities including Elke Koenig's SRB."

A European Commission spokeswoman declined to comment on the
document.

To contact the reporters on this story:

Nov. 17

* BOOK REVIEW: Competitive Strategy for Health Care Organizations
-----------------------------------------------------------------
Authors: Alan Sheldon and Susan Windham
Publisher: Beard Books
Softcover: 190 pages
List Price: $34.95
Review by Francoise C. Arsenault
Order your personal copy today at http://bit.ly/1nqvQ7V

Competitive Strategy for Health Care Organizations: Techniques
for Strategic Action is an informative book that provides
practical guidance for senior health care managers and other
health care professionals on the organizational and competitive
strategic action needed to survive and to be successful in
today's increasingly competitive health care marketplace. An
important premise of the book is that the development and
implementation of good competitive strategy involves a profound
understanding of change. As the authors state at the outset:
"What may need to be done in today's environment may involve
great departure from the past, including major changes in the
skills and attitudes of staff, and great tact and patience in
bringing about the necessary strategic training."

Although understanding change is certainly important in most
fields, the authors demonstrate the particular importance of
change to the health care field in the first and second chapters.
In Chapter 1, the authors review the three eras of medical care
(individual medicine, organizational medicine, and network
medicine) and lay the groundwork for their model for competitive
strategy development. Chapter 2 describes the factors that must
be taken into account for successful strategic decision-making.
These factors include the analysis of the environmental trends
and competitive forces affecting the health care field, past,
current, and future; the analysis of the competitive position of
the organization; the setting of goals, objectives, and a
strategy; the analysis of competitive performance; and the
readaptation of the business, if necessary, through positioning
activities, redirection of strategy, and organizational change.
Chapters 3 through 7 discuss in detail the five positioning
activities that are part of the model and therefore critical to
the development and implementation of a successful strategy:
scanning; product market analysis; collaboration; restructuring;
and managing the physician. The chapter on managing the physician
(Chapter 7) is the only section in the book that appears dated
(the book was first published in 1984). In this day of
physicianowned hospitals and physician-backed joint ventures, it
is difficult to envision the physician in the passive role of
"being managed." However, even the changing role of physicians
since the book's first publication correlates with the authors'
premise that their model for competitive strategic planning is
based exactly on understanding and anticipating change, which is
no better illustrated than in health care where change is
measured not in years but in months. These middle chapters and
the other chapters use a mixture of didactic presentation, graphs
and charts, quotations from famous individuals, and anecdotes to
render what can frequently be dry information in an entertaining
and readable format.

The final chapter of the book presents a case example (using the
"South Clinic") as a summary of many of the issues and strategic
alternatives discussed in the previous chapters. The final
chapter also discusses the competitive issues specific to various
types of health care delivery organizations, including teaching
hospitals, community hospitals, group practices, independent
practice associations, hospital groups, super groups and
alliances, nursing homes, home health agencies, and for-profits.
An interesting quote on for-profits indicates how time and change
are indeed important factors in strategic planning in the health
care field: "Behind many of the competitive concerns.lies the
specter of the forprofits.

Their competitive edge has lain until now in the excellence of
their management. But developments in the past halfdecade
have shown that the voluntary sector can match the forprofits
in management excellence. Despite reservations that may
not always be untrue, the for-profit sector has demonstrated that
good management can pay off in health care. But will the
voluntary institutions end up making the same mistakes and having
the same accusations leveled at them as the for-profits have? It
is disturbing to talk to the head of a voluntary hospital group
and hear him describe physicians as his potential competitors."



                            *********

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

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

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


                            *********


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

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

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

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

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

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000 or Nina Novak at
202-362-8552.


                 * * * End of Transmission * * *