TCREUR_Public/161215.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

          Thursday, December 15, 2016, Vol. 17, No. 248


                            Headlines


F R A N C E

NORD ANGLIA: S&P Affirms 'B' CCR, Outlook Stable
SGD GROUP: S&P Affirms Then Withdraws 'B' CCR


G E R M A N Y

DECO 2014: Fitch Affirms 'BBsf' Rating on Class F Notes
EUROMAR COMMODITIES: Administrator Says Operations to Continue
TECHEM GMBH: Fitch Affirms 'BB-' Long Term Issuer Default Rating


G R E E C E

SEANERGY MARITIME: Discloses Pricing of $15M Public Offering


I R E L A N D

ANGLO IRISH: Promontoria Seeks Judgment v. Businessmen Over Loans
ANGLO IRISH: Ireland to Get EUR280MM Payout from Liquidators


I T A L Y

MONTE DEI PASCHI: Incoming PM Says Rescue Being Prepared
SESTANTE FINANCE 4: S&P Cuts Credit Rating on Class B Notes to D
UNICREDIT SPA: Boss Unveils Fundraising Plan, Mulls Job Cuts


N E T H E R L A N D S

E-MAC DE RMBS: Fitch Hikes Class C Notes Rating to 'BB-sf'
STRONG 2016: Moody's Assigns (P)Ba1 Rating to Class C Notes


R U S S I A

ER-TELECOM HOLDING: Moody's Affirms B2 CFR, Outlook Positive
GLOBEXBANK: S&P Lowers Counterparty Credit Rating to 'B+'
ROSGOSSTRAKH PJSC: S&P Puts 'B+' Ratings on CreditWatch Negative
TATFONDBANK PJSC: S&P Cuts Counterparty Credit Ratings to CCC-/C


S P A I N

CAJA VITAL 1: Fitch Cuts Rating on Class D Notes to 'CCCsf'
SPAIN: May Take Over Bankrupt Toll Roads as Rescue Deal Uncertain


U K R A I N E

PRIVATBANK: Dismisses Nationalization Rumors


U N I T E D   K I N G D O M

KING & WOOD MALLESONS: In Merger Talks with Handful of Firms


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NORD ANGLIA: S&P Affirms 'B' CCR, Outlook Stable
------------------------------------------------
S&P Global Ratings affirmed its 'B' long-term corporate credit
rating on Nord Anglia Education Inc.  The outlook is stable.  In
addition, S&P affirmed its 'cnBB-' long-term Greater China
regional scale rating on the company.  S&P also affirmed the 'B'
long-term issue rating and 'cnBB-' Greater China regional scale
rating on Nord Anglia's guaranteed loans, notes, and revolving
credit facility.

At the same time, S&P affirmed its recovery rating on Nord
Anglia's existing bank loans at '4H', indicating S&P's
expectation that the average recovery of the principal in the
event of a payment default would be at the higher end of the 30%-
50% range. Nord Anglia is a Hong Kong-domiciled provider of
premium education services with operations across the world.

"We expect Nord Anglia's leverage to remain high despite
profitability growth.  This is attributed to the likelihood of
acquisition-fueled growth, some of which may be debt funded
beyond fiscal 2017," said S&P Global Ratings credit analyst
Clifford Kurz.

S&P forecasts the company's debt-to-EBITDA ratio to remain
materially above S&P's upgrade trigger of a debt-to-EBITDA ratio
of 6.0x over the next 12 months.  In S&P's view, that ratio is
likely to moderate over the longer term, given strong growth in
tuition fees, rising utilization at newly opened schools, and
good cost control.  S&P's debt leverage includes additional
operating lease liabilities from the company's sale and leaseback
of US$167 million completed in fiscal 2016 (ended August 2016).
The company plans to use the proceeds for acquisitions in fiscal
2017.

Given the company's financial sponsor ownership, S&P's credit
metrics do not net the company's surplus cash balance against its
total adjusted debt since S&P considers the company's financial
sponsor ownership would indicate a more aggressive capital
allocation strategy towards growth.

Strong fiscal 2016 results highlight the company's successful
integration of six schools acquired from Meritas LLC., a U.S.-
based education company, driving robust revenue growth of about
50% and adjusted EBITDA margin improvement of about one
percentage point (ppt).  S&P anticipates that Nord Anglia will
grow revenues by about 10%-20% annually over the next two years,
of which more than half will likely be achieved through
acquisitions.

S&P forecasts EBITDA margins to decline when including the cost
of operating leases by about 2 ppt-3 ppt.  This is in part due to
lower utilization associated with the opening of new schools, the
creation of a dedicated team in China, and some initial margin
dilution from acquisitions.  Excluding operating leases, S&P's
adjusted EBITDA margins are likely to remain flat at around 32%-
33% in fiscal 2017.

"Nord Anglia's enlarged scale through acquisitions and new
openings should improve its competitive advantage and preserve
its considerable geographic diversification, in our opinion.  We
also note that Nord Anglia has an attractive brand given its
strong track record of service and solid academic performance
from its student base," Mr. Kurz said.

However, Nord Anglia faces intense competition because of high
industry fragmentation.  S&P estimates that Nord Anglia only has
about a 5% share of the global market for premium private
international schools, and only 10%-15% market share among those
private international school operators with two or more schools.

Given that Nord Anglia's profitability is above the industry
average, and that it has positive working capital and low capital
expenditure due to its asset-light strategy, S&P expects free
operating cash flow to remain positive and grow significantly
over the next two years.  S&P do not expect any material impact
on profitability from a stronger U.S. dollar, given the company's
outstanding currency swaps of about US$40 million for renminbi
(RMB) exposure and US$30 million in euros for the next three
years.  However, more aggressive acquisition spending will likely
result in negative cash flow available for potential debt
repayment.

The stable outlook reflects S&P's view that Nord Anglia will
maintain its good market position in the premium international
school segment and continue to expand through organic growth and
acquisitions.  S&P believes the company's strong growth momentum,
good profitability, and high visibility on cash flows temper the
risk of aggressive financial policy and high leverage.

S&P could lower the rating if Nord Anglia's profitability weakens
materially.  Further, the rating could come under pressure if the
financial sponsor owners adopt a more aggressive financial stance
such that leverage increases significantly and EBITDA interest
coverage ratio drops below 2.0x with no signs of improvement.
S&P could also lower the rating if it believes Nord Anglia's
liquidity position deteriorates significantly.  This could occur
as a result of more aggressive and cash-exhaustive acquisitions
than S&P expects, although S&P considers such downside risk
limited.

S&P could raise the rating if Nord Anglia can consistently
improve its financial risk profile while maintaining a good
market position and profitability.  A reduction of the debt-to-
EBITDA ratio consistently and comfortably well-below 6.0x while
EBITDA interest coverage above 3.0x would indicate such
improvement.


SGD GROUP: S&P Affirms Then Withdraws 'B' CCR
---------------------------------------------
S&P Global Ratings said it has affirmed its 'B' long-term
corporate credit rating on France-based glass packaging
manufacturer SGD Group SAS and its subsidiaries SGD S.A. and SGD
Kipfenberg GMBH.  S&P subsequently withdrew the ratings at the
company's request.  At the time of withdrawal, the outlook was
stable.

The ratings reflected S&P's view of SGD Group's fair business
risk profile, constrained by the company's small scale and scope
compared to international peers, and its sole focus on glass
packaging for the pharmaceutical industry.  The ratings also
reflected the group's highly leveraged capital structure due to
what S&P views as an aggressive financial policy.  In October
2016, the group was acquired by China Jianyin Investment Ltd.
which, in S&P's view, is effectively acting as a financial
sponsor because it follows an aggressive financial strategy using
debt to maximize shareholder returns.


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DECO 2014: Fitch Affirms 'BBsf' Rating on Class F Notes
-------------------------------------------------------
Fitch Ratings has affirmed DECO 2014 - Bonn Limited's floating-
rate notes due 2024 as follows:

   -- EUR308.6m Class A (ISIN XS1150577150) affirmed at 'AAAsf';
      Outlook Stable

   -- EUR48.2m Class B (ISIN XS1150578638) affirmed at 'AA+sf';
      Outlook Stable

   -- EUR74.2m Class C (ISIN XS1150578802) affirmed at 'AA-sf';
      Outlook Stable

   -- EUR88.6m Class D (ISIN XS1150579362) affirmed at 'A-sf';
      Outlook Stable

   -- EUR85.7m Class E (ISIN XS1150580022) affirmed at 'BBB-sf';
      Outlook Stable

   -- EUR40.4m Class F (ISIN XS1150581186) affirmed at 'BBsf';
      Outlook Stable

The transaction is a securitisation of a EUR680m commercial
mortgage loan. The loan was granted by Deutsche Bank AG, London
Branch to 24 pre-existing German special purpose vehicle
borrowers to refinance 29 office assets.

KEY RATING DRIVERS

The affirmations reflect the stable performance of the underlying
collateral, 26 well-located office properties located in the top
seven German cities, while the loan has amortised by EUR6.6m
since the last rating action in December 2015. No assets have
been sold since the last rating action.

The reported loan-to-value ratio (LTV) had reduced to 68.3%, as
of the August 2016 interest payment date, from 69.13% at closing,
due to amortisation and prior asset sales. However, the property
portfolio has not been revalued since the transaction closed in
December 2014.

The income profile has remained largely stable, but the
increasing amortisation is the main reason for a reduction in
debt service coverage ratio (DSCR) to 1.8x from 2.3x over the
last year. The occupancy improved slightly to 93.6% from 91.7%
over the same period.

Allianz RE (AA-/Stable) is the largest tenant in the portfolio,
accounting for 53% of passing rent. The majority of its leases
expire in 2020, the year after loan maturity. Securing long-term
commitment from the tenant or signing replacement tenants in case
Allianz vacate may be key to a successful/ timely repayment of
the loan.

Cap rates have tightened across the seven largest metropolitan
office locations in Germany over the last year, both for prime
and secondary assets. Market rents have been stable to positive,
while vacancy rates have been slightly declining.

Fitch expects the loan to repay in full in 'Bsf' and 'BBsf'
stresses.

RATING SENSITIVITIES

A major downturn in the German metropolitan office markets, a
reversal of investor's sentiment or a significant deterioration
of the tenant of the main tenant (Allianz SE) could adversely
affect the transaction's performance and lead to downgrades.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation
to this rating action.

DATA ADEQUACY

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

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

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

SOURCES OF INFORMATION

The information below was used in the analysis.

   -- Investor reporting provided by Situs Asset Management as at
      August 2016

   -- Cash manager reporting provided by Deutsche Bank AG as at
      November 2016


EUROMAR COMMODITIES: Administrator Says Operations to Continue
--------------------------------------------------------------
Alexander Kell at Bloomberg News reports that Euromar
Commodities' preliminary insolvency administrator Rolf Rattunde
of Berlin-based Leonhardt Rattunde is "cautiously optimistic" he
will be able to continue operating Euromar Commodities with all
125 staff.

According to Bloomberg, Mr. Rattunde says he is currently working
on pre-financing of insolvency funds.  He says he started talks
with banks, investors to finance the commodity business,
Bloomberg relays.

As reported by the Troubled Company Reporter-Europe on Dec. 12,
2016, Bloomberg News related that the local court in Neuruppin,
Germany, opened insolvency proceedings for Euromar.

Euromar Commodities supplies semi-finished cocoa products to the
food industry.


TECHEM GMBH: Fitch Affirms 'BB-' Long Term Issuer Default Rating
----------------------------------------------------------------
Fitch Ratings has affirmed Germany-based sub-metering company
Techem GmbH's (Techem) Long-Term Issuer Default Rating (IDR) at
'BB-'. The Outlook is Stable.

Fitch has also affirmed Techem's EUR815m senior secured bank debt
and EUR410m senior secured notes at 'BB'. The EUR325m
subordinated notes issued by Techem Energy Metering Service GmbH
& Co. KG are also affirmed at 'B'.

The affirmation reflects Fitch's view that Techem has good
earnings visibility and growth prospects. The agency considers
that management can steer the financial profile within the ratio
guidelines for the 'BB-' Long-Term IDR, balancing growth capex
and dividend payments when required. Management and shareholders
have given a firm commitment to maintain net debt/EBITDA based
leverage at or below 4.5x at financial year-end. Fitch's rating
case assumes adherence to this financial policy.

KEY RATING DRIVERS

Legislation Supports Growth

Techem is progressing with the roll-out of smoke detectors and
water testing in Germany, facilitating growth of 4% on LTM basis
as of September 2016 for the German operations which reached
turnover of EUR482.7m. Over the medium term, EU directives
require the implementation of energy efficiency guidelines into
national legislation. Techem is among the key players in this
market, has operations across Europe and will be able to
capitalise on its expertise as and when the roll-out happens.
Revenue in the international segment was up 7.9% on LTM basis as
of September 2016 to reach EUR178.3m, predominantly driven by
demand in Italy. Many EU countries, however, made little progress
with the legislative adaptation to date, implying a potential
material increase in demand over the medium to long-term.

Focus on Operational Efficiency

In the financial year to March 2016 (FY16) Techem largely
transitioned towards insourcing of sales partner contracts and
achieved significant progress in optimising business processes
from order placement through to installation, service and
maintenance. The group reported EUR38.2m of exceptionals for
organisational restructuring and integrating planning and
logistic software. Fitch qualified around EUR20m of these as non-
recurring, taking the view that there is an ongoing element of
investment in IT and business process platforms. Reporting to
September 2016 already shows an uptick in margin by around 2%,
with Fitch's base case assuming an improvement of EBITDA margin
from 34.3% in 2016 to around 37.5% over the rating horizon.

Resilient Business Model

Techem benefits from a high degree of stability and
predictability of cash flows due to the contracted nature of i)
the installed base of metering devices, and ii) energy
contracting. The group has a strong brand, a competitive cost
base and renders a comparably high level of service. As a result,
Techem reports low churn rates. Around 80% of revenues and the
majority of profits come from Germany and future growth will
enhance economies of scale.

Commitment to Financial Policy

The ratings are supported by a firm commitment from Techem's
management and shareholders to maintain net debt/EBITDA-based
leverage at or below 4.5x at financial year-end on a sustained
basis (leverage may be above 4.5x at quarter ends due to the
cash/working capital cycle across the year). "We therefore
anticipate Techem will maintain a balanced approach between
investments in business development and shareholder
distributions," Fitch said.

Credit Metrics Comfortably Within Guidance

Cash flow in FY16 was visibly stronger than forecast, which kept
FFO adjusted gross leverage at 5.1x versus the previously
projected rise to 5.9x. The updated rating case assumes capex of
around EUR125m per year and distributions between EUR100m-130m,
in which case FFO adjusted gross leverage is expected to remain
close to 5x and FFO interest coverage slightly above 3x. The
financial profile now has material headroom in comparison to
Fitch's negative rating sensitivities.

DERIVATION SUMMARY

Techem's IDR of 'BB-' reflects a business profile positioned
between high non-investment and low investment grade (BB+/BBB-)
levels in combination with 'B' quality of the financial
structure. It is strongly conditional upon a benign regulatory
environment in Germany and in the EU in the medium term.
Approximately 80% of company's earnings are derived from medium-
term contracts with high renewal rates translating into stable
recurring cash flows. In addition, Techem's business model
benefits from scale allowing it to price service contracts
competitively, and together with its proprietary knowhow,
incompatible with offers of alternative service providers, leads
ahead of existing and new competition. Investments relate mostly
to specific new contracts leading to immediate revenue streams
and cash flows, and are therefore considered low-risk and
scalable. "The rating is constrained by Techem's relatively
aggressive financial profile, to which we ascribe high importance
in our rating considerations. We point, however, to a projected
material headroom improvement on the credit metrics side,
assuming a disciplined approach towards new debt incurrence and
shareholder distributions," Fitch said.

KEY ASSUMPTIONS

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

   -- mid-term revenue growth at low single-digit rates;

   -- group EBITDA margin gradually improving to above 37% driven
      by top-line growth and operating efficiencies;

   -- capex at EUR125m p.a.;

   -- shareholder distributions of EUR100m-130mp.a. subject to
      maintenance of net debt/EBITDA <4.5x policy target;

   -- one-off charges of EUR10m-15m pa between FY17-FY19 due to
      restructuring measures and settlement of the Greek JV
      guarantee (cash effective in FY17).

RATING SENSITIVITIES

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

   -- Further improvement in operating profitability through
      organic business growth,

   -- Reduction of FFO adjusted leverage to below 4.5x on a
      sustained basis, together with FFO interest coverage
      greater than 3.0x, supported by ongoing commitment to
      financial policy.

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

   -- FFO adjusted leverage at or above 6.0x or FFO interest
      coverage below 2.0x over a sustained period,

   -- Sustained contraction in revenues and margin erosion to
      below 30% (FY16: 34.3%), leading to persistently negative
      free cash flows (FCF)

LIQUIDITY

Sufficient Organic Liquidity

Techem's internal cash generation before dividends is projected
by Fitch to improve steadily from around EUR45m in FY17 to EUR60m
by FYE19 driven by higher earnings and despite a permanent step-
up in capex to EUR125m. The strengthening cash-flow generation
should allow the issuer to increase annual shareholder
distributions to EUR110m-130m, while maintaining net debt/EBITDA
at its target of at or below 4.5x at financial year-end in March.

"We project Techem will maintain sufficient levels of internal
liquidity to support its daily activities as well as invest in
future growth by way of product innovation and entry into new
geographical markets. We continue to classify EUR20m as
restricted cash required for daily operational needs," Fitch
said.

In addition the company has access to currently largely undrawn
Capex facility of EUR210m (EUR10m was drawn as of October 2016)
and further EUR29m available under the committed RCF of EUR50m
(EUR21m drawn as of October 2016), which create a comfortable
liquidity buffer for the business.


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SEANERGY MARITIME: Discloses Pricing of $15M Public Offering
------------------------------------------------------------
Seanergy Maritime Holdings Corp. announced the pricing of its $15
million public offering of 10,000,000 common shares and class A
warrants, at a combined price to the public of $1.50 per common
share and class A warrant.  The offering is expected to close on
or about Dec. 13, 2016.  The Company estimates that the net
proceeds from the offering, after deducting the underwriting
discount and offering expenses, will be approximately
$13,380,000. The net proceeds of the offering are expected to be
used for debt repayment, vessel acquisitions in accordance with
the Company's growth strategy and general corporate purposes.

Maxim Group LLC is acting as sole manager for the offering.  The
Company has granted Maxim Group LLC a 45-day option to purchase
up to an additional 1,500,000 common shares and/or 1,500,000
class A warrants to cover over-allotments, if any.

Each class A warrant will be immediately exercisable for one
common share at an exercise price of $2.00 per share.  The class
A warrants will expire five years from issuance, but the Company
may call the warrants for cancellation upon 10 trading days prior
written notice commencing 13 months after issuance, subject to
certain conditions, including the volume weighted average price
of the Company's common shares exceeding $7.00 for a period of 10
consecutive trading days.  The class A warrants have been
approved for listing on the Nasdaq Capital Market and are
expected to trade under the ticker symbol "SHIPW" beginning on
Dec. 8, 2016.

A registration statement relating to the securities was declared
effective by the U.S. Securities and Exchange Commission on
Dec. 7, 2016.  The offering was made by means of a preliminary
prospectus that was included in the registration statement, and a
final prospectus is expected to be filed on or about Dec. 9,
2016. Copies of the final prospectus relating to this offering
will be available on the SEC's website, www.sec.gov, and may be
obtained from Maxim Group LLC, 405 Lexington Avenue, New York,
New York 10174, Attn: Prospectus Department, or by telephone at
(800) 724-0761.

                          About Seanergy

Athens, Greece-based Seanergy Maritime Holdings Corp. is an
international company providing worldwide seaborne transportation
of dry bulk commodities.  The Company owns and operates a fleet
of seven dry bulk vessels that consists of three Handysize, two
Supramax and two Panamax vessels.  Its fleet carries a variety of
dry bulk commodities, including coal, iron ore, and grains, as
well as bauxite, phosphate, fertilizer and steel products.

For the year ended Dec. 31, 2015, the Company reported a net loss
of US$8.95 million on US$11.2 million of net vessel revenue
compared to net income of US$80.3 million on US$2.01 million of
net vessel revenue for the year ended Dec. 31, 2014.

As of Sept. 30, 2016, Seanergy had US$203.60 million in total
assets, US$184.45 million in total liabilities and US$19.15
million in stockholders' equity.

Ernst & Young (Hellas) Certified Auditors-Accountants S.A., in
Athens, Greece, issued a "going concern" qualification on the
consolidated financial statements for the year ended Dec. 31,
2015, citing that the Company reports a working capital deficit
and estimates that it may not be able to generate sufficient cash
flow to meet its obligations and sustain its continuing
operations for a reasonable period of time, that in turn raise
substantial doubt about the Company's ability to continue as a
going concern.


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ANGLO IRISH: Promontoria Seeks Judgment v. Businessmen Over Loans
-----------------------------------------------------------------
The Irish Times reports that a financial fund is seeking judgment
of EUR18 million against two businessmen over loans from the
former Anglo Irish Bank provided for purposes including a housing
development in Dublin.

According to The Irish Times, Promontoria (Arrow) Ltd., which
took over the loans, is seeking judgment against Martin Walshe
and Gerry McIntyre.

Promontoria, The Irish Times says, is also seeking judgment
against Mr. McIntyre for another EUR2 million in relation to
another loan to him from Anglo to renew an existing facility with
that bank.

The case was admitted to the Commercial Court by Mr. Justice
Brian McGovern on consent between the parties, The Irish Times
relates.

                   About Irish Bank Resolution

Irish Bank Resolution Corp., the liquidation vehicle for what was
once one of Ireland's largest banks, filed a Chapter 15 petition
(Bankr. D. Del. Case No. 13-12159) on Aug. 26, 2013, to protect
U.S. assets of the former Anglo Irish Bank Corp. from being
seized by creditors.  Irish Bank Resolution sought assistance
from the U.S. court in liquidating Anglo Irish Bank Corp. and
Irish Nationwide Building Society.  The two banks failed and were
merged into IBRC in July 2011.  IBRC is tasked with winding them
down and liquidating their assets.  In February, when Irish
lawmakers adopted the Irish Bank Resolution Corp., IBRC was
placed into a special liquidation in the Irish High Court to
complete liquidation and distribution of the two banks' assets.

IBRC's principal asset as of June 2012 was a loan portfolio
valued at some EUR25 billion (US$33.5 billion). About 70 percent
of the loans were to Irish borrowers. Some 5 percent of the
portfolio was under U.S. law, according to a court filing.  Total
liabilities in June 2012 were about EUR50 billion, according
to a court filing.

Most assets in the U.S. have been sold already.  IBRC is involved
in lawsuits in the U.S.

IBRC was granted protection under Chapter 15 of the U.S.
Bankruptcy Code in December 2013.

Kieran Wallace and Eamonn Richardson of KPMG have been named the
special liquidators.

                       About Anglo Irish

Anglo Irish Bank was an Irish bank headquartered in Dublin from
1964 to 2011.  It went into wind-down mode after nationalization
in 2009.  In July 2011, Anglo Irish merged with the Irish
Nationwide Building Society, with the new company being named the
Irish Bank Resolution Corporation (IBRC).

Standard & Poor's Ratings Services said that it lowered its long-
and short-term counterparty credit ratings on Irish Bank
Resolution Corp. Ltd. (IBRC) to 'D/D' from 'B-/C'.   S&P also
lowered the senior unsecured ratings to 'D' from 'B-'.  S&P then
withdrew the counterparty credit ratings, the senior unsecured
ratings, and the preferred stock ratings on IBRC.  At the same
time, S&P affirmed its 'BBB+' issue rating on three government-
guaranteed debt issues.

The rating actions follow the Feb. 6, 2013, announcement that the
Irish government has liquidated IBRC.

The former Irish bank sought protection from creditors under
Chapter 15 of the U.S. Bankruptcy Code on Aug. 26, 2013 (Bankr.
D. Del., Case No. 13-12159).  The former bank's Foreign
Representatives are Kieran Wallace and Eamonn Richardson.  Its
U.S. bankruptcy counsel are Mark D. Collins, Esq., and Jason M.
Madron, Esq., at Richards, Layton & Finger, P.A., in Wilmington,
Delaware.


ANGLO IRISH: Ireland to Get EUR280MM Payout from Liquidators
------------------------------------------------------------
Cliff Taylor at The Irish Times reports that Ireland is to
receive a EUR280 million payout from the IBRC liquidators in the
next fortnight, as they make their first payout to the unsecured
creditors of the former Anglo Irish Bank and Irish Nationwide.

The joint special liquidators of IBRC, Kieran Wallace and Eamonn
Richardson of KPMG announced on Dec. 13 that most unsecured
creditors are to receive 25% of what they are owed in an interim
dividend, The Irish Times relates.

The State has a EUR1.12 billion claim as by far the biggest
unsecured creditor, relating to money it paid to depositors in
the failed financial institutions under the State guarantee when
they were wound up, The Irish Times discloses.  The payment will
reduce the final total for cash borrowing by the Government this
year, The Irish Times notes.

Anglo and Irish Nationwide were bailed out by the State at a cost
of EUR35 billion, The Irish Times recounts.  The amount raised by
the liquidator indicates that this cost will not rise further and
that in time a small amount may be recouped, The Irish Times
states.

The special liquidators said in a statement on Dec. 13 there is
no further update on the expected dividend range at the moment,
The Irish Times relays.  According to The Irish Times, the final
outcome, they said, will depend on the price received for selling
the remaining assets, the level of unsecured creditor claims
ultimately agreed and the outcome of various court proceedings.

All told, at the time of IBRC's liquidation, the group owed about
EUR5 billion to unsecured creditors, The Irish Times states.
However, almost EUR3 billion of this was made of intergroup
borrowings between various units, according to The Irish Times.
The agreed unsecured creditors must be paid in full before any
cash is paid to a group of junior bondholders, who are owed
EUR285 million, The Irish Times states.

                  About Irish Bank Resolution

Irish Bank Resolution Corp., the liquidation vehicle for what was
once one of Ireland's largest banks, filed a Chapter 15 petition
(Bankr. D. Del. Case No. 13-12159) on Aug. 26, 2013, to protect
U.S. assets of the former Anglo Irish Bank Corp. from being
seized by creditors.  Irish Bank Resolution sought assistance
from the U.S. court in liquidating Anglo Irish Bank Corp. and
Irish Nationwide Building Society.  The two banks failed and were
merged into IBRC in July 2011.  IBRC is tasked with winding them
down and liquidating their assets.  In February, when Irish
lawmakers adopted the Irish Bank Resolution Corp., IBRC was
placed into a special liquidation in the Irish High Court to
complete liquidation and distribution of the two banks' assets.

IBRC's principal asset as of June 2012 was a loan portfolio
valued at some EUR25 billion (US$33.5 billion).  About 70 percent
of the loans were to Irish borrowers. Some 5 percent of the
portfolio was under U.S. law, according to a court filing.  Total
liabilities in June 2012 were about EUR50 billion, according
to a court filing.

Most assets in the U.S. have been sold already.  IBRC is involved
in lawsuits in the U.S.

IBRC was granted protection under Chapter 15 of the U.S.
Bankruptcy Code in December 2013.

Kieran Wallace and Eamonn Richardson of KPMG have been named the
special liquidators.


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


MONTE DEI PASCHI: Incoming PM Says Rescue Being Prepared
--------------------------------------------------------
Claire Jones and Rachel Sanderson at The Financial Times report
that time is running out for the world's oldest bank to persuade
investors to inject EUR5 billion of capital to save it from
collapse.

Italy's Monte dei Paschi di Siena tried to convince the European
Central Bank, which supervises the eurozone's biggest banks, to
give it until late January to find private funds for a
recapitalization.  But it failed, the FT notes.

The ECB's supervisory board met on Dec. 9 and decided to stick to
its deadline of the end of the year for the Italian bank to find
the capital it needs and complete the sale of EUR28 billion of
bad loans, the FT relays.

That leaves Italy's third-largest bank, whose difficulties have
caused problems for the rest of the sector and could make waves
elsewhere in the eurozone, with just days to get out of a
difficult corner, the FT states.

ECB supervisory board decisions on issues such as MPS need to be
approved by the Frankfurt bank's governing council before they
can be finalized -- but it would be unusual if the council did
not follow the board's advice, the FT discloses.

MPS in a statement late on Dec. 13 confirmed it had received a
"draft decision" in which the ECB refused the bank's request to
extend the period for its capital-raising until January, the FT
relays.

Among the motives for the decision, the ECB, as cited by the FT,
said that the delay in completing the recapitalization could lead
to a further deterioration in MPS's liquidity and a worsening of
its core capital ratio, putting the bank's survival at risk.

The ECB also maintained that delaying until January did not
guarantee more favorable market conditions, said MPS, the FT
relates.

On receipt of the letter, the Italian bank has three days to
appeal against the decision, the FT discloses.  If the ECB deems
the bank's arguments have merit, the ECB supervisory board would
discuss the request for an extension again, the FT notes.  But a
successful appeal is considered unlikely, the FT states.

If after three days there has been no appeal, the decision would
become binding, according to the FT.

Much depends on what Rome does next, the FT says.  Paolo
Gentiloni, Italy's incoming prime minister, said on Dec. 13 that
his government was "ready to intervene" to stabilize the
country's financial sector and suggested a rescue was being
prepared for MPS, the FT relates.

The Italian authorities are giving MPS another week to attempt a
privately funded solution, extending a voluntary debt-for-equity
swap to junior retail bondholders, the FT discloses.  MPS has
already raised EUR1 billion from institutions participating in
the swap, the FT states.

The ECB has long been aware of MPS's troubles and wants a
solution that does not affect the stability of the broader
Italian banking system, the FT relays.

If the private sector refuses to inject enough capital into the
bank, the government plans to do so next week, the FT states.
According to the FT, the option under consideration would force a
conversion of MPS's junior debt into equity, say officials.  This
is politically difficult to pull off given that some of the
creditors are small "retail" investors, the FT notes.  Forcing
them to share the cost of the rescue is contentious, the FT
relays.  But it is expected that these investors would be able to
seek compensation after the bail-in, according to the FT.

                     About Monte dei Paschi

Banca Monte dei Paschi di Siena SpA -- http://www.mps.it/-- is
an Italy-based company engaged in the banking sector.  It
provides traditional banking services, asset management and
private banking, including life insurance, pension funds and
investment trusts.  In addition, it offers investment banking,
including project finance, merchant banking and financial
advisory services.  The Company comprises more than 3,000
branches, and a structure of channels of distribution.  Banca
Monte dei Paschi di Siena Group has subsidiaries located
throughout Italy, Europe, America, Asia and North Africa.  It has
numerous subsidiaries, including Mps Sim SpA, MPS Capital
Services Banca per le Imprese SpA, MPS Banca Personale SpA, Banca
Toscana SpA, Monte Paschi Ireland Ltd. and Banca MP Belgio SpA.


SESTANTE FINANCE 4: S&P Cuts Credit Rating on Class B Notes to D
-----------------------------------------------------------------
S&P Global Ratings lowered to 'D (sf)' from 'CCC (sf)' its credit
rating on Sestante Finance S.r.l. series 4's class B notes.  At
the same time, S&P has affirmed its ratings on the class C1 and
C2 notes.

The rating actions follow S&P's review of the transaction's
performance using October 2016 data.  Cumulative defaults in the
pool increased to 17.06% on the October 2016 interest payment
date (IPD), from 15.1% on the October 2014 IPD.

Due to increasing cumulative defaults since S&P's December 2014
review, the transaction breached the 17.00% interest deferral
trigger for the class B notes.  As a result, the class B notes
experienced an interest shortfall on the October 2016 IPD.  S&P
has therefore lowered to 'D (sf)' from 'CCC (sf)' its rating on
the class B notes.

The class C1 and C2 notes breached the interest deferral trigger
in October 2013, at which time S&P downgraded them to 'D (sf)' as
a result.  As interest on the class C1 and C2 notes continues to
be unpaid, S&P has affirmed its 'D (sf)' ratings on the class C1
and C2 notes.

Sestante Finance series 4 is an Italian residential mortgage-
backed securities (RMBS) transaction backed by a pool of
residential mortgage loans. Meliorbanca S.p.A. originated the
loans.

RATINGS LIST

Class           Rating
          To              From

Sestante Finance S.r.l.
EUR647.9 Million Asset-Backed Floating-Rate Notes Series 4

Rating Lowered

B         D (sf)         CCC (sf)

Ratings Affirmed

C1        D (sf)
C2        D (sf)

Rating Unaffected

A2        BBB- (sf)


UNICREDIT SPA: Boss Unveils Fundraising Plan, Mulls Job Cuts
------------------------------------------------------------
Ben Martin at The Telegraph reports that the boss of UniCredit
plans to raise EUR13 billion (GBP10.8 billion) from investors,
slash thousands of jobs, shed billions of euros of bad loans and
has docked his own pay as he battles to shore up the balance
sheet of Italy's biggest bank.

Jean Pierre Mustier, the new boss of the beleaguered lender, has
outlined a sweeping overhaul of the troubled bank which aims to
boost its capital buffer, although the clean-up will cost it
EUR12.2 billion in one-off charges during the fourth quarter, The
Telegraph relates.

The Frenchman plans to cut an extra 6,500 jobs, taking the total
losses by 2019 to 14,000 -- or about one in 10 roles, close 944
of its 3,800 branches, and has struck deals to offload almost
EUR17.7 billion of non-performing loans, The Telegraph discloses.

To show his commitment to the painful turnaround, the UniCredit
chief has asked for his own fixed salary to be cut by 40% to
EUR1.2 million, will forgo an annual bonus this year, will not
receive any severance pay if he quits or is sacked, and will
invest EUR2 million in the bank's shares, The Telegraph relays.

Mr. Mustier, who took the helm at Milan-based UniCredit in July,
hopes the radical restructuring will encourage investors to back
the one of the biggest share sales in Italy's history, which the
bank plans to launch in the first quarter next year, The
Telegraph notes.

The Italian banking system is swamped with EUR360 billion of non-
performing loans and there are fears the political upheaval
caused by this month's constitutional referendum could spark a
full-blown crisis, The Telegraph discloses.

Since the financial crisis UniCredit has already tapped investors
for billions of euros and Mr. Mustier must now persuade fund
managers its latest cash call is worth investing in, The
Telegraph notes.

Within the last week, the lender has already struck deals to
offload its 40pc stake in Poland's Bank Pekao and to sell Pioneer
Investments to bolster its capital position, The Telegraph
relates.

Shareholders will not be paid a dividend for 2016 under
Mr. Mustier's plan and will vote on the restructuring on Jan. 12,
The Telegraph states.

Headquartered in Milan, Italy, UniCredit S.p.A. operates as a
commercial bank in Europe.  The company primarily operates
through Commercial Banking Italy, Commercial Banking Germany,
Commercial Banking Austria, Poland, Central and Eastern Europe,
Corporate & Investment Banking, Asset Management, Asset
Gathering, and Non-core segments.


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


E-MAC DE RMBS: Fitch Hikes Class C Notes Rating to 'BB-sf'
----------------------------------------------------------
Fitch Ratings has taken the following rating actions on the E-MAC
DE RMBS series:

   E-MAC DE 2005-I B.V.:

   -- Class A (ISIN XS0221900243): affirmed at 'AAAsf'; Stable
      Outlook

   -- Class B (ISIN XS0221901050): upgraded to 'A+sf' from 'Asf';
      Outlook Positive

   -- Class C (ISIN XS0221902538): upgraded to 'BB-sf' from
      'Bsf'; Outlook Positive

   -- Class D (ISIN XS0221903429): affirmed at 'CCCsf'; Recovery
      Estimate (RE) revised to 40% from 95%

   -- Class E (ISIN XS0221904237): affirmed at 'CCsf'; RE of 0%

   E-MAC DE 2006-I B.V.:

   -- Class A (ISIN XS0257589860): upgraded to 'AAAsf' from
      'A+sf'; Outlook Stable

   -- Class B (ISIN XS0257590876): affirmed at 'BBsf'; Stable
      Outlook

   -- Class C (ISIN XS0257591338): affirmed at 'CCCsf' RE revised
      to 20% from 90%

   -- Class D (ISIN XS0257592062): affirmed at 'CCsf'; RE of 0%

   -- Class E (ISIN XS0257592575): affirmed at 'CCsf'; RE of 0%

   E-MAC DE 2006-II B.V.:

   -- Class A2 (ISIN XS0276933347): upgraded to 'AAsf' from
      'A+sf'; Positive Outlook

   -- Class B (ISIN XS0276933859): affirmed at 'BBB-sf'; Stable
      Outlook

   -- Class C (ISIN XS0276934667): affirmed at 'Bsf'; Stable
      Outlook

   -- Class D (ISIN XS0276935045): affirmed at 'CCCsf'; RE
      revised to 10% from 65%

   -- Class E (ISIN XS0276936019): affirmed at 'CCsf'; RE of 0%

The transactions are true-sale securitisations of German
residential mortgage loans originated by GMAC-RFC Bank GmbH.
Adaxio AMC GmbH, the current servicer, is the successor company.

KEY RATING DRIVERS

As of November 2016 nearly all outstanding loans in the E-MAC DE
transactions had reached the first interest rate reset dates.
Consequently, all three transactions have had significant
principal repayments in the past two years. This has
significantly increased credit enhancement (CE) for the senior
notes and justifies the upgrades of 2006-1 and 2006-2.

Of those loans that did not prepay at interest reset, around 50%
for 2005-1 and 2006-1 have switched to a floating rate of
interest. For 2006-2 this accounts for around 25% with some first
interest rate resets still upcoming at the end of 2016 and in
early 2017. In its cash flow analysis, Fitch assumes that
borrowers will choose a fixed rate in a rising interest rate
scenario, a floating rate in a decreasing interest rate
environment and remain with their current rate arrangement in a
stable interest rate environment. The issuer will only enter into
a reset swap for those loans that stayed with fixed rates of more
than six months.

As of November 2016, arrears account for 37% of the 2005-1
portfolio, 47% for 2006-1 and 32% for 2006-2. In addition, Fitch
assumes further significant defaults and losses from currently
performing loans. Non-performing loans increase the gap between
available interest from the loan portfolio and interest to be
paid on notes and swap. This gap creates a substantial negative
carry in the agency's analysis in stressed scenarios and is most
severe if interest rates go up (due to the swap in place in such
scenarios).

The rating of Deutsche Bank AG (DB, A-/Negative/F1) in its role
as account bank for the E-MAC DE series as well as swap
counterparty and liquidity provider for 2005-1 and 2006-1 and The
Royal Bank of Scotland PLC (RBS, BBB+/Stable/F2) as the liquidity
provider and swap counterparty for 2006-2 support the ratings as
remedial actions are in place.

Fitch expects principal repayments to remain above average for
all transactions as the floating rate loans are not subject to
prepayment penalties in case borrowers decide to repay their
loans, removing the reason for typically low prepayments between
interest reset dates in German portfolios.

The Positive Outlooks on the 2005-1 class B and C notes and the
2006-2 class A notes reflect the agency's expectation of strong
prepayments further increasing the CE.

RATING SENSITIVITIES

Strong repayments may positively impact performance and CE for
the transactions. The structures remain sensitive towards a
negative carry driven by high arrears and defaults. A swift
foreclosure process by the servicer could limit the negative
impact.

The agency expects remedial action to be promptly taken by the
issuer account bank (DB) should it become ineligible. Failure to
undertake committed remedial actions may lead to a multi-notch
downgrade.

DATA ADEQUACY

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

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

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

CRITERIA VARIATIONS

Fitch's analysis of the E-MAC DE series varied from the agency's
EMEA RMBS Rating Criteria. Fitch calculated the performance
adjustment factor considering cumulative losses in the absence of
default performance information while the criteria foresees to
focus on cumulative defaults. In addition, Fitch applied
performance adjustment factors of up to five times the
portfolio's foreclosure frequency, which is above the 200% limit
stated in its criteria. This was done to adjust the 'Bsf' model
results to coincide with observed losses.

SOURCES OF INFORMATION

The information below was used in the analysis.

   -- Loan-by-loan data provided by Adaxio AMC GmbH as at
      September 2016

   -- Transaction reporting provided by CMIS Investments B.V. as
      at November 2016

MODELS

The models below were used in the analysis.
ResiEMEA.
EMEA RMBS Surveillance Model.
EMEA
Cash Flow Model.


STRONG 2016: Moody's Assigns (P)Ba1 Rating to Class C Notes
-----------------------------------------------------------
Moody's Investors Service has assigned provisional ratings to
these classes of notes to be issued by STRONG 2016 B.V.:

  EUR million senior class A mortgage-backed notes due 2065,
   Assigned (P)Aaa (sf)

  EUR million junior class B mortgage-backed notes due 2065,
   Assigned (P)Aa1 (sf)

  EUR million subordinated class C notes due 2065, Assigned
   (P)Ba1 (sf)

STRONG 2016 B.V. is a revolving securitisation of Dutch prime
residential mortgage loans.  Obvion N.V. (not rated) is the
originator and servicer of the portfolio.

                          RATINGS RATIONALE

The provisional ratings on the notes take into account, among
other factors: (1) the performance of the previous transactions
launched by Obvion N.V.; (2) the credit quality of the underlying
mortgage loan pool; (3) legal considerations; and (4) the initial
credit enhancement provided to the senior notes by the junior
notes and the reserve fund.

The expected portfolio loss of [0.25]% and the MILAN CE of [3.6]%
serve as input parameters for Moody's cash flow and tranching
model, which is based on a probabilistic lognormal distribution,
as described in the report "The Lognormal Method Applied to ABS
Analysis", published in July 2000.

MILAN CE for this pool is [3.6]%, which is in line with preceding
STRONG transactions and with other Dutch 100% NHG RMBS
transactions, owing to: (i) the availability of the NHG-guarantee
for 100.0% of the loan parts in the pool, same as for the loan
parts to be added during the revolving period, (ii) the
replenishment period of 7 years where there is a risk of
deteriorating the pool quality through the addition of new loans,
although this is mitigated by replenishment criteria, (iii) the
weighted average loan-to-foreclosure-value (LTFV) of [99.9]%,
which is similar to LTFV observed in other Dutch RMBS
transactions, (iv) the proportion of interest-only loan parts
([40.7]%), and (v) the weighted average seasoning of [6.26]
years. The risk of a deteriorating pool quality through the
addition of loans is partly mitigated by the replenishment
criteria which includes, amongst others, that the weighted
average CLTMV of all the mortgage loans, including those to be
purchased by the Issuer, does not exceed [94]% and the minimum
weighted average seasoning is at least [40] months.  Further, no
new loans can be added to the pool if there is a PDL outstanding,
if loans more than 3 months in arrears exceeds [1.5]% or the
cumulative loss exceeds [0.25]%.

The key drivers for the portfolio's expected loss of [0.25]%,
which is in line with preceding STRONG transactions and with
other Dutch 100% NHG RMBS transactions, are: (1) the availability
of the NHG-guarantee for 100.0% of the loan parts in the pool,
same as for the loan parts to be added during the revolving
period; (2) the performance of the seller's precedent
transactions; (3) benchmarking with comparable transactions in
the Dutch RMBS market; and (4) the current economic conditions in
the Netherlands in combination with historic recovery data of
foreclosures received from the seller.

The transaction benefits from a non-amortising reserve fund,
funded at [1.0]% of the total class A and B notes' outstanding
amount at closing, building up to [1.3]% by trapping available
excess spread.  The initial total credit enhancement for the Aaa
(sf) provisionally rated notes is [7.75]%, [6.75]% through note
subordination and [1.0%] through the reserve fund.  The
transaction also benefits from an excess margin of [50] bps
provided through the swap agreement.  The swap counterparty is
Obvion N.V. and the back-up swap counterparty is Cooperatieve
Rabobank U.A. (Rabobank; rated Aa2/P-1).  Rabobank is obliged to
assume the obligations of Obvion N.V. under the swap agreement in
case of Obvion N.V.'s default.  The transaction also benefits
from an amortising cash advance facility of [2]% of the
outstanding principal amount of the notes (including the class C
notes) with a floor of [1.45]% of the outstanding principal
amount of the notes (including the class C notes) as of closing.

STRESS SCENARIOS:

Moody's Parameter Sensitivities: At the time the ratings were
assigned, the model output indicated that class A notes would
have achieved Aaa (sf), even if MILAN CE was increased to [5.76]%
from [3.6]% and the portfolio expected loss was increased to
[0.75]% from [0.25]% and all other factors remained the same.

Moody's Parameter Sensitivities provide a quantitative/model-
indicated calculation of the number of rating notches that a
Moody's structured finance security may vary if certain input
parameters used in the initial rating process differed.  The
analysis assumes that the deal has not aged and is not intended
to measure how the rating of the security might migrate over
time, but rather how the initial rating of the security might
have differed if key rating input parameters were varied.
Parameter Sensitivities for the typical EMEA RMBS transaction are
calculated by stressing key variable inputs in Moody's primary
rating model.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
September 2016.

The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE
RATINGS:

Significantly different loss assumptions compared with our
expectations at close due to either a change in economic
conditions from our central scenario forecast or idiosyncratic
performance factors would lead to rating actions.

For instance, should economic conditions be worse than forecast,
the higher defaults and loss severities resulting from a greater
unemployment, worsening household affordability and a weaker
housing market could result in a downgrade of the ratings.
Downward pressure on the ratings could also stem from (1)
deterioration in the notes' available credit enhancement; or (2)
counterparty risk, based on a weakening of a counterparty's
credit profile, particularly Obvion N.V. and Rabobank, which
perform numerous roles in the transaction.

Conversely, the ratings could be upgraded: (1) if economic
conditions are significantly better than forecasted; or (2) upon
deleveraging of the capital structure.

The provisional ratings address the expected loss posed to
investors by the legal final maturity of the notes.  In Moody's
opinion, the structure allows for timely payment of interest and
ultimate payment of principal with respect to the notes by the
legal final maturity.  Moody's ratings only address the credit
risk associated with the transaction.  Other non-credit risks
have not been addressed, but may have a significant effect on
yield to investors.

Moody's issues provisional ratings in advance of the final sale
of securities, but these ratings only represent Moody's
preliminary credit opinion.  Upon a conclusive review of the
transaction and associated documentation, Moody's will endeavor
to assign definitive ratings to the Notes.  A definitive rating
may differ from a provisional rating.  Moody's will disseminate
the assignment of any definitive ratings through its Client
Service Desk.  Moody's will monitor this transaction on an
ongoing basis.


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


ER-TELECOM HOLDING: Moody's Affirms B2 CFR, Outlook Positive
------------------------------------------------------------
Moody's Investors Service has affirmed the corporate family
rating of Russian telecoms company ER-Telecom Holding, CJSC at B2
and its probability of default rating (PDR) at B2-PD.
Concurrently, the agency changed the outlook on the ratings to
positive from stable.

"Our decision to change outlook on ER-Telecom's ratings to
positive comes on the back of successful efforts to diversify its
service line-up and expand into other regions, primarily through
M&A, while maintaining relatively strong profitability, cash flow
generation and interest coverage metrics, as well as moderate
leverage and good liquidity," says Julia Pribytkova, a Moody's
Vice President - Senior Analyst.

                          RATINGS RATIONALE

The action reflects Moody's view that ER-Telecom's operating
profile has strengthened owing to the diversification of its
services and growing geographic footprint.  Over 2015-16, the
company completed a number of acquisitions which materially
increased its business-to-business (B2B) segment, which now
contributes more than one-third of revenue, and broadened its
range of services which now includes a higher share of fixed-line
telephony services, Wi-Fi service in Moscow and mobile operations
via an MVNO agreement with MegaFon PJSC (Ba1 negative).  Despite
the high organic and inorganic growth rate, ER-Telecom maintains
relatively robust profitability, cash flow generation and
interest coverage metrics, as well as moderate leverage and good
liquidity. Moody's expects these metrics to improve in the next
12-18 months as the company moderates investment and M&A activity
and completes integration of its newly acquired businesses.

The B2 CFR and positive outlook takes into account the company's
(1) demonstrated ability to achieve geographic expansion and
strong double-digit annual revenue growth; (2) strong competitive
position (ER-Telecom has an 11% share of Russian broadband and
pay TV markets in terms of revenue) and brand recognition; (3)
robust profitability and positive free cash flow generation in
most of the markets in which it has operated for more than three
years; (4) modern fixed-line network, which requires fairly low
maintenance capex; and (5) improved liquidity and long-term debt
maturity profile.  Moody's notes that ER-Telecom continues to
grow its revenue organically notwithstanding weak market
conditions in Russia.

ER-Telecom's rating is constrained by (1) the company's small
size on a global scale (a factor further negatively affected by
the devaluation of the Russian rouble in 2014-15); (2) its
evolving and elevated at times leverage profile driven by fast
growth, as well as expectations of negative/weak free cash flow
generation in 2016-17 as a result of ambitious growth strategy
implementation; (3) limitations to growth resulting from the
saturation of fixed-line broadband and the pay TV market in
Russia, and declining dispensable incomes in the country; and (4)
strong competition from integrated operators, such as the
country's largest fixed-line national telecommunications operator
PJSC Rostelecom (unrated), and satellite broadcasting.

Moody's positively notes that the company's main shareholder Perm
Industrial and Financial Group (PFIG, unrated), which also
controls oilfield services company Neftserviceholding LLC (B1
stable) and a meaningful real estate business has a track record
of providing liquidity support to the company in the form of
shareholder loans.

                   RATIONALE FOR THE POSITIVE OUTLOOK

The positive outlook reflects Moody's view that the company's
ratings are strongly positioned in the current rating category
and have a potential for an upgrade in the next 12-18 months.

                WHAT COULD CHANGE THE RATING UP/DOWN

Given the positive outlook, Moody's could consider an upgrade of
ER-Telecom's ratings within the next 12-18 months if the company
were to sustainably (1) maintain debt/EBITDA of below 3.5x, (2)
demonstrate successful implementation of its growth strategy,
including efficient and sustainable conversion of capex to cash
flow and improvement in profitability and interest coverage
metrics, and (3) maintain solid liquidity.

Conversely, negative pressure on the ratings would develop if ER-
Telecom's (1) leverage measured by net debt/EBITDA rose above the
currently maximum anticipated levels of 4.0x and (EBITDA-
capex)/interest fell below 1.0x for more than 12 months; (2)
liquidity profile deteriorated; (3) competitive position
weakened, resulting in a sustained decline in profitability and
poor conversion of investment into cash flow; and (4) shareholder
structure changed in a way that could lead to diminished
shareholder support.  Material debt-funded acquisitions would be
considered by the agency separately for their effect on the
ratings.

                       PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global Pay
Television - Cable and Direct-to-Home Satellite Operators
published in April 2013.

ER-Telecom Holding CJSC is a telecommunications company providing
high-speed internet access, cable TV, and fixed-telephony
services in Russia under the brand dom.ru.  The company's network
currently covers around 11 million households in 566 towns.  ER-
Telecom is 67,9% owned by the Perm Industrial and Financial Group
(PFIG), 9,3% by Baring Vostok Capital Partners, 13.5% by
management,7% by Enforta B.V and 2.3% by other shareholders.  In
2015 and first nine months of 2016, ER-Telecom generated revenue
of RUB22.2 billion and RUB20.5 billion, respectively ($366
million at the average exchange rate in 2015, and $302 million at
the average exchange rate in the first nine months of 2016), 66%
of which was derived from internet services, 27% from cable TV
and 7% from other services including telephony.


GLOBEXBANK: S&P Lowers Counterparty Credit Rating to 'B+'
---------------------------------------------------------
S&P Global Ratings lowered its long-term counterparty credit
rating on Russia-based GLOBEXBANK to 'B+' from 'BB-'.  S&P
affirmed the short-term rating at 'B'.  The outlook is negative.

S&P also lowered its Russia national scale rating on the bank to
'ruA' from 'ruAA-'.

The downgrade reflects continued pressure on GLOBEXBANK's
profitability and capitalization, which, in S&P's view,
constrains its current competitive position and puts its overall
viability at risk without external support.

"We believe GLOBEXBANK's market share and capacity to deliver
stable earnings from its core business have significantly
deteriorated over the past several years, resulting in
accumulated losses of Russian ruble (RUB) 27.2 billion (about
US$0.4 billion) or about 96% of the bank's reported shareholders'
equity as of end-2015.  The losses for the first half of 2016
comprised an additional RUB8.7 billion, reflecting still-elevated
credit costs needed to cover additional deterioration of the
quality of its loan portfolio.  According to International
Financial Reporting Standards, GLOBEXBANK's nonperforming loans
(NPLs; loans more than 90 days overdue) peaked at 31.6% as of
mid-2016, compared with 17.5% as of year-end 2015.  This is
substantially higher than the system average of an estimated
10%," S&P said.

"We view positively GLOBEXBANK's intention to further increase
its loan loss provisioning coverage to close to 100% by 2016
year-end from 85% as of June 2016 thanks to capital support from
its parent totaling RUB29.8 billion provided in August 2016.  We
believe that GLOBEXBANK's weak capitalization provide only
limited buffers for additional loan loss absorption.  We
therefore expect that our risk-adjusted capital (RAC) ratio
before adjustment for concentration and diversification will be
about 3.4%-3.7% by end-2017, which is very low in a Russian and
international context," S&P noted.

In 2016, S&P observed some tightening of underwriting standards
and decrease in the bank's risk appetite (including an internal
ban on new loans to real estate and construction, inter alia,
given that this sector's performance has been among the weakest
in the bank's portfolio).  S&P thinks that the quality of the
bank's loan portfolio will likely stabilize in 2017.  The bank
plans to write off and to sell a significant part of its NPL
legacy portfolio to VEB, which should have a positive impact on
its NPL figures and provisions.  However, even if these plans
materialize as expected, the NPLs will likely decrease to about
15%, which is still substantially higher than the market average.
S&P expects that weak new business growth will continue putting
pressure on the bank's profitability and further development
prospects.  Moreover, S&P thinks that without regular support
from VEB (or new shareholders if ownership structure changes) the
bank would not be able to continue operations in its current form
and meet all regulatory requirements according to Russian banking
regulations.

"Our understanding is that VEB plans to divest GLOBEXBANK at some
point in the future, although the disposal of the bank over the
next 12-18 months will be a challenge for VEB, given GLOBEXBANK's
weak financial profile and unclear business growth prospects.  We
also note that the divestment of GLOBEXBANK is possible only with
government approval because of VEB's special role as a government
development group and involvement in GLOBEXBANK's rehabilitation.
We currently expect that VEB will continue providing timely and
sufficient support to GLOBEXBANK in the form of liquidity and/or
capital as long as the bank retains its status as VEB's
subsidiary.  We believe that RUB29.8 billion capital support
provided by VEB in the second half of 2016 supports this
assessment of future potential support from VEB.  At the same
time, should VEB advance in its plans to sell GLOBEXBANK to a
third party, we will need to reassess the group status of
GLOBEXBANK toward the acquiring company and the ability and
willingness of a new controlling shareholder to provide support
to the bank, which might impact our rating on the bank.
Similarly, if we believed that the link between the bank and VEB
has weakened and VEB is less willing or able to provide support
to GLOBEXBANK, we could revise our assessment of the group status
of GLOBEXBANK toward VEB, which might in turn impact its
ratings," S&P said.

Currently, S&P continues to assess GLOBEXBANK as a strategically
important subsidiary within the VEB group, incorporating three
notches of support above GLOBEXBANK's stand-alone credit profile
(SACP; which S&P now assess at 'ccc+'), into S&P's rating.

The negative outlook on GLOBEXBANK reflects the likely negative
impact of Russia's weakened operating environment on the bank's
financial profile.  S&P expects the bank's capitalization and
business profile will remain under pressure, owing to declined
business activity, very weak earning generating capacity, and
constant reliance on external support to continue its operations
over the next 12-18 months.

S&P could lower the ratings if it observed that, instead of
stabilizing asset quality, GLOBEXBANK's viability further
weakened over the next 12-18 months, leading to deterioration of
S&P's forecast RAC ratio before concentration and diversification
adjustments to below 3%, or significant weakening of its
liquidity.  Also, S&P could lower the ratings by one notch or
more if it perceived over the next 12-18 months that VEB's
commitment to provide timely and sufficient support had
diminished.  This might be driven by the limitations stemming
from VEB's own financial constraints and insufficient government
support, or potential divestment of GLOBEXBANK by VEB.  If VEB
advances in its plans to sell GLOBEXBANK, S&P will reassess the
ability of the new controlling shareholder to provide support to
GLOBEXBANK, and S&P might downgrade the bank if it considers that
the new owner is unable or unwilling to provide the same level of
support VEB has been providing.

Although unlikely at this stage, S&P could revise the outlook to
stable if it saw that the deterioration of the of the bank's
business position and pressure on capital buffers stabilized and
the bank is on track to gradually improve its financial profile.


ROSGOSSTRAKH PJSC: S&P Puts 'B+' Ratings on CreditWatch Negative
----------------------------------------------------------------
S&P Global Ratings placed its 'B+' long-term insurer financial
strength and counterparty credit ratings and 'ruA' Russia
national scale ratings on Russia-based insurer PJSC Rosgosstrakh
on CreditWatch with negative implications.

The CreditWatch placement follows Rosgosstrakh having posted
material losses as of the first half of 2016, as per
International Financial Reporting Standards, and for the first
nine months of 2016, as per Russian General Accounting
Principles.  These losses heighten the vulnerability of the
insurer's business position amid the challenging conditions of
the current macroeconomic environment, and S&P notes that the
insurer's capital adequacy is gradually weakening.  Furthermore,
this deterioration is happening alongside changes in the
regulatory framework for Russian insurers operating in obligatory
motor third party (OMTPL) insurance market.  Although S&P thinks
these changes could create more opportunities for the insurer's
operating performance to improve, S&P don't expect a marked
change before the end of 2017.

The aforementioned developments prompted us to reassess the
company's business risk profile to vulnerable from fair,
reflecting continuing underperformance, with a net combined ratio
reaching 117.6% as of the first six months of 2016, similar to
that for full-year 2015, and net loss of Russian ruble
(RUB)8.6 billion (approximately US$140 million) -- two times
higher than that for 2015.  S&P expects S&P Global Ratings'
risk-based capital adequacy to fall significantly below our 'BBB-
' rating level in 2016-2017 due to capital erosion.  Capital
adequacy worsened markedly in 2015 and in the first half of 2016
due to substantial losses, material goodwill on the balance sheet
of the company, and increased investments in equities.  S&P don't
see further material improvements in the insurer's capital
adequacy in 2016 due to the aforementioned factors, but the
company's recently announced plan to issue additional shares of
RUB46 billion could strengthen the company's capital position,
financial flexibility, and liquidity.  S&P expects to get more
clarity on potential investors and the company's possibilities of
increasing capital within the coming three months.

S&P's view of Rosgosstrakh's credit quality is bolstered by the
company's special role as the dominant provider of obligatory
motor insurance to individuals in a number of Russian regions.
The company's reach includes remote regions, which supports S&P's
view of its extensive distribution network.  S&P notes that other
insurers are not as broadly present in remote regions.  In S&P's
opinion, this creates an incentive for the regulatory forbearance
and for the regulator to provide support using different
instruments on a going-concern basis.

S&P understands that the regulator's approach of unifying
insurance standards and conditions aims to smooth policy
distribution in problematic regions and allocate losses across
companies writing OMTPL, effectively supporting Rosgosstrakh,
which historically has the highest share in a number of
problematic regions.  Overall, S&P believes there are several
regulatory initiatives that could lead to improvements in the
company's business position, but the new regulation's impact
won't materialize until closer to the end of 2017 or beyond.

S&P expects to resolve the CreditWatch within three months, after
obtaining information on Rosgosstrakh's expected 2016 financial
results and possibilities for improvement of its capital
position.

S&P anticipates that the insurer will receive enough financial
support to cover its underwriting losses reported in 2016 and
prior periods.  A rating affirmation will depend on
Rosgosstrakh's ability to improve its financial performance and
its business risk profile based on the capital support provided.

S&P will lower the ratings by at least one notch if it believes
that its financial and business risk profiles will continue to
weaken protractedly, constraining Rosgosstrakh's competitive
position, financial risk profile, or liquidity.

If S&P was to consider that the insurer's liquidity had become a
perpetual constraint on operations, it would likely cap the
rating at 'B-' at best.


TATFONDBANK PJSC: S&P Cuts Counterparty Credit Ratings to CCC-/C
----------------------------------------------------------------
S&P Global Ratings said that it lowered its long- and short-term
counterparty credit ratings on PJSC Tatfondbank to 'CCC-/C' from
'B/B' and placed them on CreditWatch with negative implications.
S&P also lowered its Russia national scale ratings on Tatfondbank
to 'ruCCC-' from 'ruBBB+' and placed them on CreditWatch
negative.

At the same time, S&P lowered its ratings on Tatfondbank's senior
unsecured obligations to 'CCC-' and placed them on CreditWatch
negative.

"We understand that, during the past few weeks, Tatfondbank
experienced an unexpected outflow of customers' funds, estimated
at about 6%-7% of the bank's total liabilities.  We believe that
Tatfondbank is facing liquidity risks and that counterparty
confidence in the bank may have significantly reduced.  We also
note that the bank entered into a litigation process in recent
months related to the deposit of about Russian ruble RUB14
billion it received from the Bank Sovetskiy.  Additionally,
Tatfondbank has about RUB5 billion of investments in bonds issued
by Bank Peresvet ('D/D'), which is subject to a payment
moratorium imposed by the Central Bank of Russia.  We believe
that these factors materially increase the pressure on
Tatfondbank's liquidity position," S&P said.

As of Dec. 8, 2016, the bank's immediate liquidity regulatory
ratio was 15.29%, only marginally above the minimum regulatory
requirement of 15%.  S&P therefore sees the bank's current
liquidity position as highly pressured.  This view is consistent
with a 'CCC' category rating, which, according to S&P's criteria,
reflects the situation of an obligor vulnerable to nonpayment and
dependent upon favorable business, financial, and economic
conditions to meet its financial commitments.  S&P has lowered
its assessment of the bank's liquidity position to weak.

In S&P's view, Tatfondbank's ownership and business strategy
could undergo material changes.  The major beneficiary of the
bank is subject to changes as part of the bank's anticipated plan
for financial rehabilitation to prevent a deeper liquidity crisis
and protect its viability.

With about RUB200 billion (about $3.2 billion) of assets
according to Russian generally accepted accounting principles on
Dec. 1, 2016, Tatfondbank is a midsize regional bank located in
the Republic of Tatarstan.  S&P believes that the current
controlling stake at the bank is held by a group of individuals
who are politically connected to the government of Tatarstan.
S&P also understands that the bank is about 45% owned directly or
indirectly by the Tatarstan government itself.

To resolve the CreditWatch, S&P will look at Tatfondbank's
ability to restore its liquidity position and its contingency
plans.  S&P expects to resolve the CreditWatch within the next
few weeks, as soon as S&P has greater clarity on the liquidity
situation, potential support from shareholders, and regulatory
actions.

S&P may lower the ratings to the 'CC' category if anticipated
support looks set to be insufficient or absent, making a default
would be a virtual certainty in the coming months.  S&P could
also place the bank's ratings on 'SD' (selective default), if it
has confirmation that the bank had discontinued serving some of
its obligations.

S&P could raise the bank's ratings if it was to see its liquidity
position stabilize sustainably and sufficiently to honor all its
obligations in full and in a timely manner.  A positive rating
action also could follow a material improvement in the bank's
capital position.


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


CAJA VITAL 1: Fitch Cuts Rating on Class D Notes to 'CCCsf'
-----------------------------------------------------------
Fitch Ratings has downgraded three tranches and affirmed one
tranche of AyT Colaterales Global Hipotecario, FTA Serie Caja
Vital I, as follows:

   -- Class A notes (ISIN ES0312273081): affirmed at 'AAsf'; off
      Rating Watch Negative (RWN); Outlook Stable

   -- Class B notes (ISIN ES0312273099): downgraded to 'BBBsf'
      from 'Asf'; off RWN; Outlook Stable

   -- Class C notes (ISIN ES0312273107): downgraded to 'Bsf' from
      'BBsf'; off RWN; Outlook Stable

   -- Class D notes (ISIN ES0312273115): downgraded to 'CCCsf'
      from 'Bsf'; off RWN; Recovery Estimate 85%

The Spanish prime RMBS transaction comprises loans originated by
Kutxabank, S.A. (BBB/Positive/F3).

KEY RATING DRIVERS

Performance Adjustment Factor (PAF)

Fitch applies a PAF to the base foreclosure frequency when
conducting its asset analysis in accordance with its criteria.
For seasoned transactions, the PAF compares gross cumulative
defaults and outstanding arrears against expected default at that
point in the transaction's life. The maximum credit Fitch gives
to better than expected portfolio performance is floored at a 30%
decrease in foreclosure frequency. Fitch has removed the floor
for this transaction, further decreasing the base foreclosure
frequencies to reflect the relatively good performance of the
highly seasoned loans (over 10 years) even during a period of
economic stress. The removal of the floor constitutes a variation
from Fitch's EMEA RMBS Rating Criteria.

Despite this, Fitch found the credit enhancement (CE) was not
sufficient to sustain the ratings leading to the downgrades. We
had previously placed the notes on RWN following the discovery of
an error in the previous analysis.

Stable Asset Performance

The deal has shown sound asset performance compared with the
Spanish average. As of November 2016, three-months plus arrears
(excluding defaults) as a percentage of the current pool balance
stood at 0.71%. These numbers are below Fitch's Prime index of
three-months plus arrears (excluding defaults) of 0.76%.

Cumulative defaults, defined as mortgages in arrears by more than
18 months, remain below the sector average of 5.5%. However,
Fitch believes that these levels may rise further as late-stage
arrears roll into the default category.

Exposure to Maturity Extensions

The transaction includes loans that have been subject to maturity
extensions (2.26% of the current portfolio). Fitch has found that
given the small exposure, the ratings can sustain stresses
associated with treating the restructured loans as loans in
arrears by more than 90 days in accordance with the agency's
criteria.

Reserve Fund Draws

The reserve fund remains close to its target (91.4%). Fitch
believes further draws may take place on future payment dates,
but expects them to remain limited in size. The resilience of the
reserve fund is reflected in the relatively high Recovery
Estimate assigned to the class D notes.

Payment Interruption

The transaction has a dynamic reserve sized to cover for six
months of expected class A interest and senior fees. In
accordance with its counterparty criteria for structured finance
transactions, Fitch considers these funds sufficient to mitigate
payment interruption risk in the case of a servicer default.

Swap Counterparty

Under the transaction documentation, Kutxabank, S.A.
(BBB/Positive/F3) performs the role of swap provider. Given the
bank's current rating it is currently posting collateral. Fitch
ran a sensitivity analysis, whereby no credit was given to the
swap. The analysis showed that the investment-grade notes could
sustain the ratings even without the swap.

RATING SENSITIVITIES

Fitch may take rating action if significant draws from the
reserve fund occur on the next payment dates as this may
compromise the protection of the junior classes.

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

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

DATA ADEQUACY

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

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

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

SOURCES OF INFORMATION

Loan-by-loan data provided by:

   -- Haya Titulizacion S.G.F.T, S.A. and sourced from the
      European Data Warehouse with a cut-off date of:
      31 October 2016

Issuer and Servicer reports provided by:

   -- Haya titulizacion, SGFT, S.A. since close and until
November
      2016:

   -- Maturity extension provided by Haya Titulizacion S.G.F.T,
      S.A with a cut-of date of August 2016

MODELS

ResiEMEA.


EMEA RMBS Surveillance Model.
EMEA
Cash Flow Model.


SPAIN: May Take Over Bankrupt Toll Roads as Rescue Deal Uncertain
-----------------------------------------------------------------
Jose Elias Rodriguez and Robbie Hetz at Reuters report that the
Spanish government may have to take over several bankrupt toll
roads, the minister for public works said on Dec. 12, adding that
the state's chances of reaching a rescue deal involving the
motorways' bank lenders was slim.

The government has been trying for the past three years to
negotiate some arrangement with creditors to help prop up nine
struggling toll roads while also avoiding saddling the state
deficit with several billions euros of debt, Reuters relays.

The deal would have involved steep losses for lenders -- one plan
envisage a 50% writedown on the debt -- alongside an aid package,
Reuters notes.

But the public works minister, Inigo de la Serna, told state
television that talks had been hampered by banks selling off much
of the loans to other investors, Reuters discloses.

"This is a very complicated process, some (of the highways) are
in bankruptcy proceedings and already at the liquidation stage
and so the scenario we are presented with is that they would
revert back to the state," Reuters quotes de la Serna as saying.
"We are trying to negotiate with the banks . . . but it's
complicated."

Mr. De la Serna did not detail how much debt the motorways were
lumbered with, Reuters notes.  Construction lobby group Seopan
last year estimated that the cost of a nationalization could be
around EUR5.5 billion (US$5.84 billion), Reuters recounts.

The Spanish government has been trying to keep the roads open and
already appealed one court ruling that would have caused two
motorways backed by Abertis, Sacyr and ACS to be liquidated and
closed, Reuters relates.


=============
U K R A I N E
=============


PRIVATBANK: Dismisses Nationalization Rumors
--------------------------------------------
Roman Olearchyk at The Financial Times reports that PrivatBank,
the largest commercial bank in war-scarred Ukraine controlling
more than a third of national deposits, claimed in a Dec. 14
statement that an "informational attack" and rumors of its
"pseudo-nationalization" were "aimed at [hurting] bank clients
and amount to an attempt to politically destabilize the situation
in the country."

The warning from a bank which is owned by one of Ukraine's most
powerful and outspoken oligarchs follows a battering of its
Eurobonds on rumors that the country's central bank could put it
under administration -- or go further by seeking its
nationalization, the FT relays.

Fired from a governorship role in 2015 after a bitter falling out
with President Petro Poroshenko, PrivatBank co-owner Igor
Kolomoisky has remained largely silent amid uncertainty over the
bank's fate, the FT notes.

But on Dec. 14, the bank issued its alarming statement, as cited
by the FT, saying:

"There is no legal concept or legislative way in Ukraine today to
'nationalize' this or that stably operating bank; this
underscores the blatant 'fakeness' of relevant information being
distributed to bank customers via SMS, instant messenger, call
centers, phone calls and certain media.  PrivatBank is in
accordance with a schedule agreed with the National Bank of
Ukraine conducting actions as part of a recapitalization program
which goes through 2018."

There were on Dec. 14 no reports of a massive run on deposits by
PrivatBank clients, the FT notes.  But concerns about massive
related party lending have spread this year in government and
banking circles, as have concerns over whether the bank and its
owners were upholding commitments to recapitalize and clean up
lending books, the FT relates.

According to the FT, multiple sources familiar with the matter
have said that proper handling of PrivatBank is a key condition
to securing further disbursements from a US$17.5 billion
International Monetary Fund program.  Citing political risks and
delays in obtaining a fresh IMF tranche, Ukraine's central bank
on Dec. 14 prolonged some currency controls, the FT discloses.


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


KING & WOOD MALLESONS: In Merger Talks with Handful of Firms
------------------------------------------------------------
Tabby Kinder, writing for TheLawyer.com, reported that King &
Wood Mallesons has confirmed it has received a number of
"indicative purchase offers" and is now "entering into detailed
discussions with a small number of parties".

Thomas Connelly, writing for LegalCheek.com, reported that the
firm entered into merger talks after its bank lender, Barclays,
had taken out additional security against the firm's assets,

According to the LegalCheek.com report, KWM released a statement
saying: "[P]leased to confirm that it has received a number of
indicative purchase offers.  The management team and its
financial advisers have reviewed these and are now entering into
detailed discussions with a small number of parties."

The firm said it will not be commenting further given the
confidential nature of the discussions.  A further announcement
will be made once discussions have been completed.

According to LegalCheek.com, KWM is in discussions for a
potential merger with Dentons.  The report said Dentons is
reportedly interested in acquiring KWM's entire European arm.

LegalCheek.com also said other rumored suits are DLA Piper,
Greenberg Traurig and Winston & Strawn.

The LegalCheek.com report recounted that KWM in November revealed
that a planned GBP14 million partner-funded lifeline to cover its
debts had not been given the go-ahead. Initially put on hold due
to several high profile partner resignations, KWM eventually
confirmed that the "planned recapitalisation program" had failed.
According to a statement released at the time, KWM will now be
considering "a range of strategic options," including the
possibility of a merger.

The law firm of King & Wood Mallesons -- http://www.kwm.com/--
has 2,700 lawyers across more than 30 international offices.  It
claims to be the only firm in the world able to practice PRC,
Hong Kong, Australian, English, US and a significant range of
European and Middle Eastern laws.


                            *********

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 * * *