TCREUR_Public/161220.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Tuesday, December 20, 2016, Vol. 17, No. 251


                            Headlines


F R A N C E

DRY MIX: Moody's Affirms 'B1' Corporate Family Rating
KERNEOS CORPORATE: S&P Puts 'B+' CCR on CreditWatch Positive
NOVAFIVES: S&P Lowers CCR to 'B' on Weaker Operating Performance


G E R M A N Y

CYAN BLUE: S&P Raises CCR to B+ on Strong Operating Performance
INEOS STYROLUTION: Moody's Assigns B1 Corp. Family Rating


I R E L A N D

BLACKROCK EUROPEAN: Moody's Assigns B2 Rating to Class F Notes
CARLYLE GLOBAL 2016-2: Moody's Assigns B2 Rating to Class E Notes


I T A L Y

MONTE DEI PASCHI: To Push Through with Debt-for-Equity Swap


K A Z A K H S T A N

EASTCOMTRANS LLP: Fitch Lowers LT Issuer Default Rating to 'CCC'


L U X E M B O U R G

CAPSUGEL SA: Moody's Puts B2 CFR on Review for Upgrade


N E T H E R L A N D S

ALG INTERMEDIATE: S&P Puts 'B' CCR on CreditWatch Negative
ARES EUROPEAN CLO III: Moody's Assigns B2 Rating to Cl. F Notes
OZLME BV: Moody's Assigns B2 Rating to EUR12MM Class F Notes


R U S S I A

AUTOTORGBANK: Moody's Raises LT Currency Deposit Ratings to B2
IDEYA BANK: Put On Provisional Administration, License Revoked
MIP BANK: Put on Provisional Administration, License Revoked
RYAZAN REGION: Fitch Affirms 'B+/B' Issuer Default Ratings
VOLGOGRAD REGION: Fitch Affirms 'B+/B' Issuer Default Ratings


S E R B I A

SERBIA: Fitch Affirms 'BB-' Long-Term Issuer Default Ratings


S P A I N

GRIFOLS SA: Moody's Cuts Corporate Family Rating to 'Ba3'


T U R K E Y

TURK EXIMBANK: S&P Affirms Then Withdraws 'BB/B' FC Ratings


U K R A I N E

PRIVATBANK: US$5.5BB Balance Sheet Hole Prompts Nationalization


U N I T E D   K I N G D O M

DRAX POWER: S&P Affirms 'BB' Long-Term CCR, Outlook Stable
HAWES SIGNS: Enters Administration After CVA Fails
MOTOR PLC 2016-1: Moody's Assigns Ba3 Rating to Class F Notes
REGAIN POLYMERS: Enters Into Company Voluntary Arrangement
TOWD POINT 2016-GRANITE3: Moody's Rates GBP7.3MM Class F Notes B2


U Z B E K I S T A N

RAVNAQ-BANK: S&P Affirms 'CCC+/C' Counterparty Credit Ratings


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F R A N C E
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DRY MIX: Moody's Affirms 'B1' Corporate Family Rating
------------------------------------------------------
Moody's Investors Service has changed to stable from negative the
outlook on France-based Dry Mix Solutions Investissements S.A.S.'
(Parex or group) ratings and affirmed the B1 corporate family
rating (CFR) and the Ba3-PD probability of default rating (PDR)
of the group. Concurrently, Moody's affirmed the B1 (LGD5)
ratings on the group's EUR550 million senior secured floating
rate notes due 2021 and the senior secured EUR150 million
floating rate notes due 2023.

RATINGS RATIONALE

The stabilization of the outlook recognizes Parex's robust
operating performance through the first three quarters of 2016
(3Q-16) and credit metrics strengthening to levels that Moody's
considers adequate for the affirmed B1 CFR. The rating action
follows the change in the outlook on Parex's ratings to negative
from stable in March 2016, after the group's refinancing and
issue of EUR150 million new floating rate notes to fund a
dividend payment to its shareholder and a partial redemption of a
shareholder loan. Healthy organic topline growth (+7% yoy at
constant scope and currencies) and an all-time record EBITDA
margin as adjusted by the group of 18% in 3Q-16 (+0.9%-points
yoy) supported credit metrics to improve faster than Moody's had
anticipated at the beginning of the year. Reported sales
increased by 2.5% yoy in 3Q-16, driven by moderate growth in the
group's mature markets (USA in particular) and contributions from
recent acquisitions, whereas sustained buoyant demand in emerging
markets (10.8% organic sales growth) was more than offset by
negative foreign currency effects (weaker CNY and ARS against the
euro). Supported by the higher volumes as well as low raw
material costs, EBITDA as adjusted by Parex exceeded EUR126
million in 3Q-16 (+7.9% yoy), while Moody's-adjusted EBITDA also
increased and margins remained high at 17.4% for the 12 months
ended (LTM) September 2016, albeit impacted by higher financial
currency losses. As a result, Parex's leverage ratio reduced to
below 4.8x Moody's-adjusted debt/EBITDA as of LTM Q3-16, while
the agency expects leverage to further decline towards 4.5x
during next year, which positions the group solidly in its rating
category. Growth in 2017 should be spurred by both moderate
volume increases across Parex's mature and emerging markets as
well as continued supportive industry fundamentals related to
higher penetration of the group's industrial dry-mix solutions,
including through substitution in its ceramic tile setting
materials segment.

Moreover, the rating action reflects Moody's expectation that
Parex's free cash flows (FCF) will substantially improve in 2017
(mid double-digit million euros), after being impacted this year
by a EUR116 million dividend payment to its shareholder as part
of the refinancing in March.

LIQUIDITY

Moody's considers Parex's liquidity as very good. As of 30
September 2016, the group had access to EUR124 million of cash
and cash equivalents, which, together with projected funds from
operations of over EUR90 million per annum, will solidly cover
all basic cash needs of the group as well as occasional further
bolt-on acquisitions over the next 12-18 months. Expected cash
uses mainly include capital expenditures of approximately EUR35
million in 2017 as well as modest working capital consumption,
albeit assuming seasonal swings of over EUR30 million. Moody's
does not expect the group to make any further profit
distributions to its shareholder in the future and free cash
flows to strengthen into solid positive territory from next year
onwards.

The liquidity assessment of Parex also recognises the group's
relatively sizeable EUR100 million super senior revolving credit
facility (maturing 2021), which was fully undrawn as of 30
September 2016.

OUTLOOK

The stable outlook incorporates the expectation that Parex's
recent track record of above-market organic topline growth and
sound profitability will continue to be supported by modest
expansion in construction output combined with favourable market
dynamics, particularly in the emerging markets. Moreover, the
stable outlook assumes that Parex will de-lever to below 4.5x
debt/EBITDA (Moody's-adjusted) based on expected steady growth in
profits.

WHAT COULD CHANGE THE RATING UP/DOWN

Moody's might upgrade Parex's ratings, if (1) adjusted leverage
was to decline below 4x debt/EBITDA; (2) EBITDA margins
maintained at around 17%; (3) free cash flow generation improved
with FCF/debt ratios of 8% or higher; all on a sustainable and
Moody's-adjusted basis. An upgrade would further require Parex to
establish a track record of a conservative financial policy,
evidenced by no material re-leveraging initiatives and/or
dividend payments to its shareholder.

Downward pressure on the ratings would evolve, if Parex's (1)
adjusted gross debt/EBITDA exceeded 5x; (2) profitability were to
weaken with adjusted EBITDA margins falling below 15%; (3) free
cash flow generation deteriorate materially. Moreover, failure to
maintain an appropriate liquidity profile would exert pressure on
the ratings.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Building
Materials Industry published in September 2014.

Dry Mix Solutions Investissements S.A.S. is an intermediate
holding company of the Parex Group (Parex), headquartered in
Issy-les-Moulineaux, France, a global leading manufacturer and
distributor of specialty dry-mix solutions for the construction
industry. The group's product offering is divided into three
business lines, (1) Faáade Protection and Decoration; (2) Tiles
Setting Materials; and (3) Waterproofing & Technical Solutions
across which Parex holds top 3 positions in its key markets. In
the 12 months ended September 2016, Parex generated net sales of
EUR921 million and EBITDA (as adjusted by the group) of EUR158
million with over 3,900 employees worldwide. The group operates
67 manufacturing sites and 9 R&D facilities in 21 countries. In
June 2014, funds advised by private equity firm CVC Capital
Partners acquired all shares in Parex from French industrial
chemicals and building materials group Materis.


KERNEOS CORPORATE: S&P Puts 'B+' CCR on CreditWatch Positive
------------------------------------------------------------
S&P Global Ratings placed its 'B+' long-term corporate credit
rating on France-based producer of calcium aluminate cements
Kerneos Corporate SAS on CreditWatch with positive implications.

At the same time, S&P placed its 'B+' issue ratings on the
group's EUR200 million 5.75% senior secured fixed rate notes and
EUR175 million floating rate notes due 2021, on CreditWatch with
positive implications.

S&P also withdrew its 'B+' issue rating and '3' recovery rating
on the group's proposed EUR445 million floating rate term loan,
which Kerneos no longer intends to place.

The CreditWatch placement follows the announcement that Imerys
plans to acquire Kerneos for EUR880 million from its current
private equity owner Astorg Partners SAS.  The closing of the
transaction is subject to consultation with Kerneos' workers
council and regulatory authorities, and is expected to occur in
mid-2017.

At the same time, Kerneos discontinued the refinancing of its
EUR200 million 5.75% senior secured fixed rate notes and
EUR175 million floating rate notes due 2021, which it announced
on Nov. 28, 2016.  S&P expects that Kerneos will redeem these
notes on or about the closing date of the acquisition with the
funds provided by Imerys.

In S&P's view, Imerys group's operational performance benefits
from significant diversification and vertical integration into
mining, providing profitability resilience despite cyclical end-
market exposure.  Moderate leverage and strong recurring free
cash flows support the company's intermediate financial risk
profile, though S&P expects that the announced debt-funded
acquisition of Kerneos will lead to a slight deterioration in
metrics for 2017. Imerys' comfortable and predictable free cash
flows should help steer credit metrics at levels S&P views as
commensurate with the rating over the medium term.  S&P forecasts
adjusted debt to EBITDA of about 2.5x and adjusted funds from
operations to debt of around 30%.

S&P believes that if the transaction is completed as planned and
Kerneos is incorporated into the combined group, its credit
quality will be higher than on a stand-alone basis.

S&P plans to resolve the CreditWatch placement once the
transaction is completed, which S&P expects in mid-2017, and once
it assess Kerneos' status within the combined group.  As a
result, S&P could raise its ratings on Kerneos by one or multiple
notches if the acquisition closes as currently planned.


NOVAFIVES: S&P Lowers CCR to 'B' on Weaker Operating Performance
----------------------------------------------------------------
S&P Global Ratings lowered its long-term corporate credit rating
on France-based industrial engineering group Novafives to 'B'
from 'B+'.  The outlook is stable.

At the same time, S&P lowered its issue rating on the group's
EUR580 million senior secured notes to 'B' from 'B+'.  The
recovery rating remains unchanged at '4', reflecting S&P's
expectation of average recovery prospects in the lower half of
the 30%-50% range in case of a default.

S&P also lowered its issue rating on the EUR90 million super
senior revolving credit facility (RCF) to 'BB-' from 'BB'.  The
recovery rating remains '1', indicating S&P's expectation of very
high (90%-100%) recovery prospects in case of a default.

The rating downgrade follows S&P's downward revision of
Novafives' operating performance for 2016 and 2017.  S&P now
expects the group's performance to significantly deviate from its
previous projections.  S&P previously thought that the group
would reduce its debt to EBITDA to close to 5.0x by end-2017.
However, S&P now thinks that deleveraging prospects have been
stalled by weak demand from some end-markets and new
restructuring initiatives that will reduce free operating cash
flow (FOCF) generation to close to zero this year.

Despite reported revenue growth of about 6% over the first nine
months of 2016 compared to the same period last year, Novafives
reported negative EUR10 million operating profit versus positive
EUR4.9 million last year.  Some of its divisions, including
cement, energy, metals and aerospace, witness protracted softness
in demand and suffered from cyclical global industrial capital
expenditure (capex) reduction.  The group also saw some
profitability weakening due to the negative contribution from its
ECL acquisition and a lower contribution from spare parts.
Additionally, the value of large contracts in the order book
declined considerably, and explains most of the 13% order book
decline over the first nine months of this year.

S&P also notes that Novafives increased its restructuring charges
due to capacity-adjustment initiatives mainly in its metals
division, affected by the reduction of investments in steel.  S&P
calculates unadjusted EBITDA for the first nine months of 2016 at
EUR41 million, after deducting EUR14 million of restructuring
expenses and EUR10 million related to nonoperating profits
recorded on reduction of earn-out liability for the ECL
acquisition in 2015.

Due to the high seasonality of the business, whereby many
projects are initiated during the summer and delivered at year-
end, S&P expects that the group will generate much higher EBITDA
in the fourth quarter than in each of the three previous
quarters.  For the full year 2016, S&P anticipates S&P Global
Ratings' adjusted EBITDA of about EUR100 million, which includes
a EUR14 million positive adjustment for operating leases.  At the
same time, S&P thinks that FOCF will be close to zero, with some
modest improvement expected for 2017.  S&P expects EBITDA will
improve slightly in 2017 benefitting from expected jumbo
contracts likely coming in early 2017 and lower restructuring
expenses.  S&P notes, however, some downside risks that S&P
attaches mainly to the energy and steel end-markets. Importantly,
roughly one-third of revenues in the energy segment is related to
the maintenance of nuclear sites, and these revenues have not
been affected by oil price declines.

S&P's view of Novafives' business risk profile continues to
reflect the group's good end-market and geographic
diversification.  The group generates about 30% of its revenue if
Europe, 30% in the U.S., 22% in Asia, and another 18% in Africa
and the Middle East.  The group offers a wide product range and
operates in several different niche markets, where it often ranks
among the top three players.  At the same time, S&P notes that
the group's profitability is below average for the capital goods
sector, despite a rather flexible cost structure supported by the
outsourcing of a large part of its manufacturing process.

The stable outlook reflects S&P's expectation that Novafives'
debt to EBITDA will approach 8.0x at end-2016 and will remain
above 7.0x over the following 12 months.  At the same time, S&P
anticipates that the group will maintain adequate liquidity,
comply with its covenant under the RCF, and demonstrate FFO
interest coverage of above 2.5x.  S&P anticipates that unadjusted
FOCF will be neutral for 2016 before becoming slightly positive
in 2017.

S&P could upgrade Novafives if S&P saw sustainable recovery
across its end-markets that would translate into higher order
intakes, including large contracts, and margin recovery to the
historic 8%-9% range.  For a higher rating, S&P would also expect
the group to deleverage to close to 5.0x debt to EBITDA through
positive FOCF generation and prudent financial policy that does
not include dividend distribution or sizable debt-funded
acquisitions.

S&P could further lower the rating if the group underperformed
against its expectations due to weaker-than-expected demand, the
protracted absence of large contracts, or higher restructuring
charges that could all lead to material negative FOCF.  Weakening
of liquidity, which could stem from noncompliance with covenants
threshold, and FFO interest coverage falling below 2.5x would
also have negative implications for the rating.



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G E R M A N Y
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CYAN BLUE: S&P Raises CCR to B+ on Strong Operating Performance
---------------------------------------------------------------
S&P Global Ratings raised its long-term corporate credit rating
on Cyan Blue Holdco 2 Ltd., a holding company for U.K.-based
betting and gaming operator Sky Bet, to 'B+' from 'B'.  The
outlook is stable.

At the same time, S&P raised to 'B+' its issue ratings on Sky
Bet's GBP35 million revolving credit facility due 2021 and
GBP340 million senior secured loan due 2022.  The recovery rating
on the loan is '3', indicating S&P's expectation of average (50%-
70%) recovery in the event of a payment default.

The rating action reflects Sky Bet's strong operating
performance, which has outperformed S&P's previous forecasts and
has resulted in improved financial metrics in 2016.
Specifically, S&P has revised its assessment of Sky Bet's
financial risk profile to aggressive, from highly leveraged,
driven by S&P's revised assessment of its financial policy to
'Financial Sponsor-5' from 'Financial Sponsor-6'.  Moreover, S&P
views Sky Bet's meaningful and consistent free operating cash
flow (FOCF) generation as commensurate with the revised rating.

In addition to the rated senior secured loan, Sky Bet is
capitalized by shareholder loans from Sky PLC and private-equity
firm CVC Partners.  Sky PLC also extended a GBP70 million vendor
loan to Sky Bet as part of CVC's acquisition of a majority stake
in 2015.  S&P views the shareholder loan from CVC as equity-like,
and accordingly deduct it in its calculation of adjusted debt;
however, both the vendor and shareholder loans from Sky PLC are
included.  On this basis S&P expects Sky Bet's leverage to
decline to 4.2x in 2017, and to below 3.5x in 2018.

S&P's weak assessment of Sky Bet's business risk profile reflects
its geographic concentration, and market share of the overall UK
gambling market, which is modest relative to rated peers.
However, S&P views the company as better positioned than some
other rated peers to which S&P applies the weak assessment.

"We view Sky Bet's low capital intensity and operating leverage
as supportive of profitability, while acknowledging a contraction
in adjusted EBITDA margins in 2016, which we attribute to costs
incurred bringing certain technological capabilities in-house and
ramping up marketing efforts.  We continue to view Sky Bet's
profitability as stronger than most rated peers.  We regard Sky
Bet's ability to create innovative products as critical to
operators in the digital betting and gaming sector, while
continuing to believe that potential regulatory responses to new
products and promotions may create volatility in profitability,"
S&P said.

"We continue to view Sky Bet's relationship with Sky PLC as
supportive of the business risk profile and it continues to serve
as a source of new customers.  Sky Bet retains exclusive rights
to the Sky brand in any jurisdiction where its former parent
operates.  As a result of Sky PLC's acquisition of Sky
Deutschland and Sky Italia in 2015, we expect Sky Bet to make
measured moves to establish and grow operations in Germany and
Italy, taking advantage of growing brand awareness.  We therefore
view the relationship as a means to both defend its market
position in the U.K. and establish positions in new overseas
markets," S&P noted.

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

   -- Net revenue growth of around 25% in 2017 and around 20% in
      2018.

   -- Adjusted EBITDA margin of 25%-26% in 2017, improving to
      around 28% in 2018.

   -- Capital expenditure of around GBP35 million in 2017,
      growing in line with revenues thereafter, with acquisitions
      to be limited to bolt-on purchases.

   -- Shareholder returns to be limited to accruals on the
      shareholder loans.

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

   -- Debt to EBITDA (excluding CVC's shareholder loan) at 4.2x
      in 2017, declining to 3.5x-3.3x in 2018.

   -- EBITDA interest coverage of 5.7x-5.9x in 2017, with
      coverage in 2018 of between 7.0x-8.0x.

   -- FFO to debt of 16%-17% in 2017, improving to 20%-25% in
      2018.

   -- Free operating cash flow (FOCF) of GBP70 million-
      GBP80 million in 2017.

The stable outlook reflects S&P's view that Sky Bet will continue
to achieve top-line growth while maintaining EBITDA margins at
recent levels.  S&P sees an adjusted debt/EBITDA ratio (excluding
the CVC shareholder loans) below 4.5x, together with material and
sustainable free operating cash flow, as commensurate with the
current rating.

S&P could lower the rating if Sky Bet were to achieve growth in
either revenue or EBITDA that fell materially short of levels
implied in our base-case scenario.  This could occur, for
example, if intensifying competition or regulatory developments
were to damage profitability.  S&P could also lower the rating if
it saw an increased risk of re-leveraging, either as a result of
a sale to a potentially more-aggressive financial sponsor or the
pursuit of a more aggressive financial policy by the existing
controlling shareholder.  S&P's base case assumes that Sky Bet
will continue to generate material free operating cash flow,
therefore any material weakening could also lead to a downgrade.

While S&P currently views an upgrade as unlikely, outperformance
of financial metrics implied by S&P's base-case scenario, on a
meaningful and sustainable basis, may cause S&P to revise the
current rating.


INEOS STYROLUTION: Moody's Assigns B1 Corp. Family Rating
---------------------------------------------------------
Moody's Investors Service assigned a B1 Corporate Family Rating
(CFR), B1-PD Probability of Default Rating (PDR) and positive
outlook to INEOS Styrolution Holding Limited (Styrolution, or the
company) and withdrawn the B1 CFR, B1-PD PDR and stable outlook
at INEOS Styrolution Holding GmbH. Concurrently, Moody's has
affirmed the B1 ratings on the approximately EUR1.0 billion
equivalent outstanding term loan B, due in 2021, at INEOS
Styrolution Group GmbH and INEOS STYROLUTION US HOLDING LLC. The
outlook at INEOS Styrolution Group GmbH has been revised to
positive from stable.

RATINGS RATIONALE

Moody's has moved the CFR and PDR to INEOS Styrolution Holding
Limited as the company has reorganized and now reports financials
there, rather than at INEOS Styrolution Holding GmbH. The top
company of the group that guarantees the rated debt has also
moved to INEOS Styrolution Holding Limited.

The positive outlook reflects that the company is strongly
positioned in the B1 rating category following the repayment of
ca EUR300 million out if its ca EUR1.3 billion equivalent term
loans. Moody's expects adjusted total debt/EBITDA to remain close
to 2.0x even if top of the cycle industry conditions normalise
somewhat, benefitting from ca EUR300 million in cost savings
already implemented compared to EUR800 million in reported
EBITDA.

Styrolution's B1 CFR reflects the (1) company's exceptionally
strong operating performance in 2015 and 2016, expected to remain
robust in the next 12 months and further support positive cash
flow generation; (2) recent ca EUR300 million debt payment that
has contributed to the substantial decrease in Moody's adjusted
leverage to 1.7x for the twelve months to September 2016 from
4.7x in FY2014; (3) leading global market share in the styrenics
market based on capacity, combined with a global operational
footprint; (4) cost leadership position, improved because of cost
reductions associated with the restructuring program; and (5)
diversified end-market exposure across packaging, household,
automotive, construction and electronics applications.

The rating is tempered by (1) INEOS Styrolution's exposure to
economic cycles and feedstock price volatility, with its large
exposure to cyclical industries such as the automotive,
construction and electronics industries; (2) a limited mandatory
debt repayment schedule going forward and shareholder friendly
policy with possible further cash payments to its parent; (3)
lack of product diversification, focussed on the styrenics chain;
and (4) heightened substitution threat for its polystyrene and
ABS products.

In addition to repaying a substantial portion of its outstanding
debt, Styrolution reported strong results in the first nine
months of 2016, with EBITDA generation and margins above Moody's
expectations. Record reported EBITDA of EUR653 million, increased
10% year-on-year (YoY) despite an abnormally strong second
quarter last year from substantial industry outages in styrene
monomer. The favourable results were mainly driven by 17% EBITDA
growth and margin expansion in the specialties division and
robust styrene monomer division performance boosted by positive
cost of sales adjustment (COSA) effects, countered with weakness
in the ABS standard division. Group EBITDA margins increased to
19% from 15%, already top of the cycle for a commodity producer,
with an increase in the specialties division to 22% from 18% as
well as a slight increase in the polystyrene division to 14%,
whereas ABS margins remained flat at 14%.

Funds from operations (FFO) of EUR428 million and capex of EUR68
million were flat YoY. After paying EUR132 million in dividends
and EUR108 million cash outflow from working capital, free cash
flow (FCF) was EUR119 million. Following Styrolution's ca EUR300
million repayment out of its ca EUR1.3 billion equivalent term
loans, Moody's adjusted total debt/EBITDA fell to 1.7x for the
twelve months to 30 September 2016 from 2.2x as of FY 2015.

Going forward, Moody's expects EBITDA to fall to between EUR600-
650 million, with margins around 14% as the top of the cycle
conditions normalise somewhat in 2017. However, this would still
result in adjusted debt/EBITDA ca 2.0x in 12-18 months' time.

The company has already announced further dividend payments of
EUR123 million in the fourth quarter 2016, that Moody's expects
will constrain FCF to between EUR50-80 million (4-6% FCF/debt)
for FY2016 as the boost from working capital seen in the fourth
quarter last year is not repeated. For 2017, Moody's expects the
fall in EBITDA to be countered with reduced dividends, leading to
FCF of between EUR130-150 million (10-12% of debt). However,
Styrolution has only been paying dividends since 2015 and Moody's
assessment of its financial policy is still evolving.

RATING OUTLOOK

The positive outlook reflects the fact that the company is
strongly positioned in the B1 rating category following the
repayment of ca EUR300 million out if its ca EUR1.3 billion
equivalent term loans. Moody's expects gross Moody's adjusted
debt/EBITDA to remain close to 2.0x even if top of the cycle
industry conditions normalise somewhat and Styrolution will
continue to generate positive free cash flow. It also assumes
that the company does not increase its debt level and maintains
adequate liquidity.

WHAT COULD CHANGE THE RATING -- UP/DOWN

The ratings could be upgraded if (1) Moody's adjusted EBITDA
margin rises sustainably above 10%; (2) it generates a sustained
positive FCF/debt ratio in the mid-teens; and (3) it reduces its
Moody's adjusted debt/EBITDA to less than 2.0x on a sustained
basis and substantially reduces debt. Conversely, ratings could
be downgraded if performance deteriorates such that (1) the
company's Moody's adjusted EBITDA margin falls sustainably below
7%; (2) liquidity deteriorates; or (3) its Moody's adjusted
debt/EBITDA rises above 3.5x on a sustainable basis.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global
Chemical Industry Rating Methodology published in December 2013.

INEOS Styrolution Holding Limited, with management based in
Frankfurt, Germany, is a leading global styrenics supplier (based
on revenues), especially in Europe and North America. INEOS
Styrolution is focused on the production and sale of polystyrene,
acrylonitrile butadiene styrene (ABS), styrene monomer, and other
styrenic specialities. The group is a wholly owned subsidiary of
INEOS AG (unrated). For the twelve months to September 2016,
INEOS Styrolution's revenues and Moody's-adjusted EBITDA were
EUR4.5 billion and EUR765 million, respectively.



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

   -- EUR244,000,000 Class A Senior Secured Floating Rate Notes
      due 2030, Definitive Rating Assigned Aaa (sf)

   -- EUR48,000,000 Class B Senior Secured Floating Rate Notes
      due 2030, Definitive Rating Assigned Aa2 (sf)

   -- EUR23,000,000 Class C Senior Secured Deferrable Floating
      Rate Notes due 2030, Definitive Rating Assigned A2 (sf)

   -- EUR20,000,000 Class D Senior Secured Deferrable Floating
      Rate Notes due 2030, Definitive Rating Assigned Baa2 (sf)

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

   -- EUR12,000,000 Class F Senior Secured Deferrable Floating
      Rate Notes due 2030, 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 2030. 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, BlackRock
Investment Management (U.K.) Limited ("BlackRock"), has
sufficient experience and operational capacity and is capable of
managing this CLO.

BlackRock CLO II is a managed cash flow CLO. At least 90% of the
portfolio must consist of secured senior loans or senior secured
bonds and up to 10% of the portfolio may consist of unsecured
senior loans, second lien loans, high yield bonds and mezzanine
loans. The portfolio is expected to be approximately 65% ramped
up as of the closing date and to be comprised predominantly of
corporate loans to obligors domiciled in Western Europe. The
remainder of the portfolio will be acquired during the six month
ramp-up period in compliance with the portfolio guidelines.

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

In addition to the six classes of notes rated by Moody's, the
Issuer issued EUR 43,800,000 of subordinated notes. Moody's will
not assign rating to this class of notes.

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

Factors that would lead to an upgrade or downgrade of the
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. BlackRock's investment
decisions and management of the transaction will also affect the
notes' performance.

Loss and Cash Flow Analysis:

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

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

   -- Par Amount: EUR400,000,000

   -- Diversity Score: 36

   -- Weighted Average Rating Factor (WARF): 2775

   -- Weighted Average Spread (WAS): 4.05%

   -- Weighted Average Coupon (WAC): 5.25%

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

   -- Weighted Average Life (WAL): 8.08 years

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

Stress Scenarios:

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

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

Ratings Impact in Rating Notches:

   -- Class A Senior Secured Floating Rate Notes: 0

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

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

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

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

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

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

Ratings Impact in Rating Notches:

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

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

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

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

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

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


CARLYLE GLOBAL 2016-2: Moody's Assigns B2 Rating to Class E Notes
-----------------------------------------------------------------
Moody's Investors Service assigned definitive ratings to six
classes of debts issued by Carlyle Global Market Strategies Euro
CLO 2016-2 Designated Activity Company (the "Issuer" or "CGMSE
2016-2"):

   -- EUR232,000,000 Class A-1 Senior Secured Floating Rate Notes
      due 2030, Definitive Rating Assigned Aaa (sf)

   -- EUR59,000,000 Class A-2 Senior Secured Floating Rate Notes
      due 2030, Definitive Rating Assigned Aa2 (sf)

   -- EUR24,000,000 Class B Senior Secured Deferrable Floating
      Rate Notes due 2030, Definitive Rating Assigned A2 (sf)

   -- EUR19,000,000 Class C Senior Secured Deferrable Floating
      Rate Notes due 2030, Definitive Rating Assigned Baa2 (sf)

   -- EUR25,000,000 Class D Senior Secured Deferrable Floating
      Rate Notes due 2030, Definitive Rating Assigned Ba2 (sf)

   -- EUR11,500,000 Class E Senior Secured Deferrable Floating
      Rate Notes due 2030, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's definitive rating of the rated notes addresses the
expected loss posed to noteholders by the legal final maturity of
the notes in 2030. 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, CELF Advisors LLP
("CELF Advisors") has sufficient experience and operational
capacity and is capable of managing this CLO.

CGMSE 2016-2 is a managed cash flow CLO. At least 96% of the
portfolio must consist of senior secured loans and senior secured
bonds and up to 10% of the portfolio may consist of unsecured
senior loans, second-lien loans, mezzanine obligations and high
yield bonds. The portfolio is expected to be at least 80% ramped
up as of the closing date and to be comprised predominantly of
corporate loans to obligors domiciled in Western Europe.

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

In addition to the six classes of notes rated by Moody's, the
Issuer issued EUR44,500,000 of subordinated notes which will not
be rated.

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

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. CELF Advisors' investment
decisions and management of the transaction will also affect the
notes' performance.

Loss and Cash Flow Analysis:

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

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

   -- Par Amount: EUR400,000,000

   -- Diversity Score: 36

   -- Weighted Average Rating Factor (WARF): 2800

   -- Weighted Average Spread (WAS): 4.20%

   -- Weighted Average Coupon (WAC): 5.5%

   -- Weighted Average Recovery Rate (WARR): 43%

   -- Weighted Average Life (WAL): 8 years

Stress Scenarios:

Together with the set of modelling assumptions above, Moody's
conducted additional sensitivity analysis, which was an important
component in determining the definitive 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 due 2030: 0

   -- Class A-2 Senior Secured Floating Rate Notes due 2030: -2

   -- Class B Senior Secured Deferrable Floating Rate Notes due
      2030: -2

   -- Class C Senior Secured Deferrable Floating Rate Notes due
      2030: -2

   -- Class D Senior Secured Deferrable Floating Rate Notes due
      2030: -1

   -- Class E Senior Secured Deferrable Floating Rate Notes due
      2030: -1

Percentage Change in WARF: WARF +30% (to 3640 from 2800)

Ratings Impact in Rating Notches:

   -- Class A-1 Senior Secured Floating Rate Notes due 2030: -0

   -- Class A-2 Senior Secured Floating Rate Notes due 2030: -3

   -- Class B Senior Secured Deferrable Floating Rate Notes due
      2030: -4

   -- Class C Senior Secured Deferrable Floating Rate Notes due
      2030: -2

   -- Class D Senior Secured Deferrable Floating Rate Notes due
      2030: -1

   -- Class E Senior Secured Deferrable Floating Rate Notes due
      2030: -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.



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


MONTE DEI PASCHI: To Push Through with Debt-for-Equity Swap
-----------------------------------------------------------
Ben Marlow at The Telegraph reports that Banca Monte dei Paschi
di Siena SpA has made a last-ditch attempt to convince tens of
thousands of ordinary Italian savers to help it escape state
hands.

According to The Telegraph, Monte dei Paschi, Italy's third
biggest bank, wants 40,000 retail investors to take part in a
complex EUR5 billion (GBP4.18 billion) bailout, which was almost
derailed by the country's recent constitutional referendum.

The Tuscan lender said it is pressing ahead with a highly-
ambitious plan to persuade private investors to convert their
bonds into shares, The Telegraph relates.

A "no" vote for the proposed reforms of Italy's prime minister,
Matteo Renzi, triggered his resignation and a bout of market
uncertainty, forcing Monte dei Paschi and its battalion of
advisers to temporarily halt the fund-raising, The Telegraph
notes.

It has been ordered to clean up its balance sheet after failing
European bank stress tests last summer, The Telegraph recounts.
However, despite the volatility, the European Central Bank turned
down a request for further time to complete the deal, forcing new
boss Marco Morelli to try to drum up the cash from private
investors in just a matter of days, The Telegraph states.

It has been given until Wednesday, Dec. 21, to assemble a
complicated, three-stage capital-raising exercise, and a second
deadline of the end of December to ensure the funds are in place.

Regular savers hold approximately EUR2.2 billion of bonds, with a
further EUR2.3 billion in the hands of institutions, The
Telegraph discloses.

Under the first stage of the rescue plan the bank will attempt to
raise around EUR2 billion via a bondholder debt-for-equity swap,
but with demand from institutions expected to be low, small
investors will need to plug the gap, The Telegraph relays.

Monte dei Paschi has told bondholders they could face bigger
losses if they do not sign up, The Telegraph relates.  The second
stage involves a share sale to existing and new investors, which
it is hoped will conjure up a further EUR1.5 billion, The
Telegraph says.

It also wants to raise EUR1 billion to EUR1.5 billion from
so-called "anchor" investors, The Telegraph states.

Qatar's sovereign wealth fund and a handful of major hedge fund
names including George Soros and John Paulson are in talks about
taking big stakes, according to The Telegraph.

If the exercise fails, then the Italian government is expected to
step in, a move that would wipe out individual savers, The
Telegraph notes.  However, it is expected Rome would set up a
compensation fund, despite it flouting EU rules, The Telegraph
says.

                     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.



===================
K A Z A K H S T A N
===================


EASTCOMTRANS LLP: Fitch Lowers LT Issuer Default Rating to 'CCC'
----------------------------------------------------------------
Fitch Ratings has downgraded Eastcomtrans LLP's (ECT) Long-Term
Issuer Default Rating (IDR) to 'CCC' from 'B' and withdrawn the
ratings. Fitch has chosen to withdraw ECT's ratings for
commercial reasons.

KEY RATING DRIVERS

The downgrade reflects increased pressure on ECT's liquidity, as
a result of which Fitch views the company's default as a real
possibility.

ECT's bondholders Dec. 15, 2016 did not accept a proposed change
of terms (including extension of maturity) of the company's
eurobond (outstanding USD59 million, due April 2018). In Fitch's
view, ECT will be dependent on refinancing (attracting new
funding) in order to be able to repay the Eurobond and a further
USD105 million (including USD74 million principal) of funding
maturing in 2017-2018, as the current cash balance (USD25
million) and internal cash generation (projected by management at
USD91 million for 2017-2018 combined) is likely to be
insufficient. Potential funding acceleration as a result of
covenant breaches could also increase near-term liquidity
pressure and default risk.

ECT's financial profile deteriorated sharply in 2015 as a result
of losses driven by the company's short FX position, which
consumed 59% of its capital. Stabilisation of the exchange rate
and performance in 2016, combined with moderate deleveraging,
have enabled the debt/tangible equity ratio to recover to a
reasonable 3.7x at end-9M16 (end-2015: 5.5x; end-2014: 1.4x).
However, higher than historical leverage means that the company
now has limited unpledged assets which it could use to secure the
additional funding it needs to support its liquidity.

RATING SENSITIVITIES
Not applicable.

The rating actions are as follows:

Long-Term IDR downgraded to 'CCC' from 'B'; withdrawn

Short-Term IDR downgraded to 'C' from 'B'; withdrawn

Long-Term local currency IDR downgraded to 'CCC' from 'B';
Withdrawn

National Long-Term Rating downgraded to 'B-(kaz)' from
'BB(kaz)'; withdrawn

Senior secured rating downgraded to 'CCC' from 'B', Recovery
Rating 'RR4'; withdrawn



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


CAPSUGEL SA: Moody's Puts B2 CFR on Review for Upgrade
------------------------------------------------------
Moody's Investors Service placed the ratings of Capsugel S.A.
Luxembourg (Capsugel) and subsidiaries on review for upgrade,
including the company's B2 Corporate Family Rating and B2-PD
Probability of Default Rating. Instrument ratings placed on
review for upgrade include the B1 senior secured rating and Caa1
senior unsecured rating. This action follows the announcement
that Lonza Group AG (not rated) has entered into a definitive
agreement to acquire Capsugel from KKR for $5.5 billion,
including the refinancing of Capsugel's existing debt.

The review for upgrade is based upon Moody's view that, should
the acquisition by Lonza be consummated, that Capsugel will
become part of an enterprise with a stronger overall credit
profile. The combined company will be larger, with about $4.7
billion of annual revenue (versus about $1 billion of revenue for
Capsugel on a stand-alone basis), and will be more diversified.
Further, Moody's expects that the combined company's financial
leverage will be lower. Lonza stated that it expects to maintain
net debt/EBITDA of around 3.0x, versus Capsugel's current
debt/EBITDA of around 6.0x. Should the combined company be rated,
Moody's expects that its rating would be higher than Capsugel's
current ratings. However should all of Capsugel's existing
debt be repaid, Moody's expects to withdraw all of Capsugel's
ratings. The transaction is expected to close in the second
quarter of 2017 and is subject to certain regulatory approvals
and other customary closing conditions.

The following ratings were placed on review for upgrade:

   Capsugel S.A. Luxembourg

   -- Corporate Family Rating, B2

   -- Probability of Default Rating, B2-PD

   -- Senior unsecured holdco PIK notes due 2019, Caa1 (LGD 5)

   Capsugel Holdings US, Inc.

   -- Guaranteed senior secured U.S. term loan due 2021, B1
      (LGD 3)

   -- Guaranteed senior secured revolving credit facility
      expiring 2019, B1 (LGD 3)

   Capsugel FinanceCo S.C.A

   -- Guaranteed senior secured European term loan due 2021, to
      B1 (LGD 3)

RATINGS RATIONALE

Excluding the potential acquisition by Lonza, Capsugel's B2
Corporate Family Rating (now on review for upgrade) reflects
Capsugel's very high financial leverage and aggressive financial
policies, including significant shareholder dividends. The rating
also reflects the company's modest overall size (by revenue), and
high concentration in the niche hard capsule market. Other credit
risks include the company's exposure to gelatin costs. The rating
is supported by the company's good track record of organic,
constant currency revenue growth, and operating margin expansion.
The rating is also supported by the company's leadership in
supplying hard capsules to the pharmaceutical and dietary
supplement industries, its track record of
technological innovation, and its good diversity by geography and
customer.

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

Capsugel, headquartered in Morristown, New Jersey, is the leading
developer and manufacturer of empty, gelatin-based hard-shell
capsules to the pharmaceutical and dietary supplement industries.
The company also provides specialty polymer (non-gelatin)
capsules, dosage formulation services and liquid-filled capsules
to its customers. Capsugel is owned by Kohlberg Kravis Roberts &
Co. L.P. For the trailing twelve months ended July 3, 2016,
Capsugel generated revenue of $1.0 billion.



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


ALG INTERMEDIATE: S&P Puts 'B' CCR on CreditWatch Negative
----------------------------------------------------------
S&P Global Ratings placed its 'B' corporate credit rating on ALG
Intermediate Holdings B.V. on CreditWatch with negative
implications.  The action follows ALG's announcement it has
entered into an agreement with KKR and an affiliate of KSL
Capital Partners to be acquired.  The financial terms of the
transaction have not been disclosed.

S&P expects that all of ALG's debt, including its $20 million
senior secured revolving credit facility due 2022, $140 million
($118 million outstanding) senior secured first-lien term loan
due 2020, and its $75 million ($74 million outstanding) second-
lien term loan due 2021 will be repaid when the transaction
closes because there is a change of control provision in the
credit agreement.  As a result, S&P is not placing ALG's issue-
level ratings on CreditWatch.

"The CreditWatch listing reflects that the purchase price, terms
of the transaction, and the proposed capital structure are
unknown, and the possibility that the acquisition will result in
incremental leverage and a lower corporate credit rating on ALG,"
said S&P Global Ratings credit analyst Daniel Pianki.

While the terms of the planned acquisition have not been
disclosed, S&P expects the company to pursue additional debt
financing that will increase leverage.  Even though S&P's current
base case forecast for adjusted debt to EBITDA is below 3x in
2016, its current highly leveraged financial risk assessment on
ALG reflects the company's financial sponsor ownership and S&P's
expectation that financial sponsors frequently extract cash or
otherwise increase leverage over time.  Furthermore, while the
current 'B' corporate credit rating could be affirmed because ALG
currently has good leverage capacity, S&P believes significant
debt issuance to fund the acquisition could put downward pressure
on the rating, depending on the amount and cost of the debt
raised.

S&P will resolve the CreditWatch listing once information about
the purchase price and the terms of the transaction become
available, and S&P can assess the company's proposed capital
structure, financial policy, and strategic direction.  The
acquisition is expected to close in the first quarter of 2017.


ARES EUROPEAN CLO III: Moody's Assigns B2 Rating to Cl. F Notes
---------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by Ares European CLO
VIII B.V. (the "Issuer" or "Ares VIII"):

   -- EUR218,000,000 Class A-1 Senior Secured Floating Rate Notes
      due 2030, Definitive Rating Assigned Aaa (sf)

   -- EUR20,000,000 Class A-2 Senior Secured Fixed Rate Notes due
      2030, Definitive Rating Assigned Aaa (sf)

   -- EUR52,800,000 Class B Senior Secured Floating Rate Notes
      due 2030, Definitive Rating Assigned Aa2 (sf)

   -- EUR26,000,000 Class C Senior Secured Deferrable Floating
      Rate Notes due 2030, Definitive Rating Assigned A2 (sf)

   -- EUR21,200,000 Class D Senior Secured Deferrable Floating
      Rate Notes due 2030, Definitive Rating Assigned Baa2 (sf)

   -- EUR20,000,000 Class E Senior Secured Deferrable Floating
      Rate Notes due 2030, Definitive Rating Assigned Ba2 (sf)

   -- EUR11,200,000 Class F Senior Secured Deferrable Floating
      Rate Notes due 2030, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's definitive rating of the rated notes addresses the
expected loss posed to noteholders by the legal final maturity of
the notes in 2030. 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, Ares European Loan
Management LLP ("Ares"), has sufficient experience and
operational capacity and is capable of managing this CLO.

Ares VIII is a managed cash flow CLO. At least 96% of the
portfolio must consist of senior secured loans and senior secured
bonds and up to 4% of the portfolio may consist of unsecured
loans, second-lien loans, mezzanine obligations and high yield
bonds. The portfolio is expected to be approximately 50% to 60%
ramped up as of the closing date and to be comprised
predominantly of corporate loans to obligors domiciled in Western
Europe.

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

In addition to the seven classes of notes rated by Moody's, the
Issuer has issued EUR 47.8m of subordinated notes, which will not
be rated.

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

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. Ares' investment decisions and
management of the transaction will also affect the notes'
performance.

Loss and Cash Flow Analysis:

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

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

   -- Par amount: EUR400,000,000

   -- Diversity Score: 37

   -- Weighted Average Rating Factor (WARF): 2800

   -- Weighted Average Spread (WAS): 4.10%

   -- Weighted Average Recovery Rate (WARR): 43.0%

   -- Weighted Average Life (WAL): 8 years.

   -- Weighted Average Coupon (WAC): 4.50%

Moody's has analysed the potential impact associated with
sovereign related risk of peripheral European countries. As part
of the base case, Moody's has addressed the potential exposure to
obligors domiciled in countries with local currency country risk
ceiling of A1 or below. Following the effective date, and given
the portfolio constraints and the current sovereign ratings in
Europe, such exposure may not exceed 10% of the total portfolio.
As a result and in conjunction with the current foreign
government bond ratings of the eligible countries, as a worst
case scenario, a maximum 10% of the pool would be domiciled in
countries with A3 local currency country ceiling. The remainder
of the pool will be domiciled in countries which currently have a
local or foreign currency country ceiling of Aaa or Aa1 to Aa3.

Stress Scenarios:

Together with the set of modeling assumptions above, Moody's
conducted additional sensitivity analysis, which was an important
component in determining the definitive 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 Fixed Rate Note: 0

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

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

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

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

   -- Class F 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 Fixed Rate Note: -1

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

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

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

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

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

Given that the transaction allows for corporate rescue loans
which do not bear a Moody's rating or Credit Estimate, Moody's
has also tested the sensitivity of the ratings of the notes to
changes in the recovery rate assumption for corporate rescue
loans within the portfolio (up to 5% in aggregate). This analysis
includes haircuts to the 50% base recovery rate which we assume
for corporate rescue loans if they satisfy certain criteria,
including having a Moody's rating or Credit Estimate.

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.


OZLME BV: Moody's Assigns B2 Rating to EUR12MM Class F Notes
------------------------------------------------------------
Moody's Investors Service assigned the following definitive
ratings to notes issued by OZLME B.V. (OZLME):

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

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

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

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

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

   -- EUR12,000,000 Class F Senior Secured Deferrable Floating
      Rate Notes due 2030, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's definitive rating of the rated notes addresses the
expected loss posed to noteholders by the legal final maturity of
the notes in 2030. 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, Och-Ziff Europe
Loan Management Limited ("Och-Ziff") has sufficient experience
and operational capacity and is capable of managing this CLO.

OZLME is a managed cash flow CLO. At least 90% of the portfolio
must consist of senior secured loans and senior secured bonds and
up to 10% of the portfolio may consist of unsecured senior loans,
second-lien loans, mezzanine obligations and high yield bonds.
The portfolio is expected to be approximately 65% ramped up as of
the closing date and to be comprised predominantly of corporate
loans to obligors domiciled in Western Europe.

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

In addition to the six classes of notes rated by Moody's, the
Issuer issued EUR 42.00m of subordinated notes which will not be
rated.

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

Loss and Cash Flow Analysis:

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

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

   -- Par amount: EUR400,000,000

   -- Diversity Score: 36

   -- Weighted Average Rating Factor (WARF): 2670

   -- Weighted Average Spread (WAS): 4.10%

   -- Weighted Average Coupon (WAC): 5.0%

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

   -- Weighted Average Life (WAL): 8 years

Stress Scenarios:

Together with the set of modelling assumptions above, Moody's
conducted additional sensitivity analysis, which was an important
component in determining the definitive 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 3071 from 2670)

Ratings Impact in Rating Notches:

   -- Class A Senior Secured Floating Rate Notes: 0

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

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

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

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

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

Percentage Change in WARF: WARF +30% (to 3475 from 2670)

Ratings Impact in Rating Notches:

   -- Class A Senior Secured Floating Rate Notes: 0

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

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

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

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

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

Methodology Underlying the Rating Action:

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

Factors that would lead to an upgrade or downgrade of the
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. Och- Ziff's investment
decisions and management of the transaction will also affect the
notes' performance.



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AUTOTORGBANK: Moody's Raises LT Currency Deposit Ratings to B2
--------------------------------------------------------------
Moody's Investors Service upgraded to B2 from B3 the long-term
local and foreign-currency deposit ratings of Autotorgbank. The
rating agency has also upgraded the bank's Baseline Credit
Assessment (BCA)/ adjusted BCA to b2 from b3 and the long-term
Counterparty Risk Assessment (CR Assessment) to B1(cr) from
B2(cr). The bank's Not-Prime(cr) short-term CR Assessment and
Not-Prime short-term local- and foreign-currency deposit ratings
were affirmed. The outlook on Autotorgbank's long-term ratings is
stable.

RATINGS RATIONALE

The rating action reflects Autotorgbank's improved solvency
metrics following the recent deleverage and substantially
decreased asset risk. The bank exhibited resilient performance in
the recently hostile Russian operating environment and, despite
its currently smaller asset size, we expect it will remain
profitable in 2017.

As of November 1, 2016, Autotorgbank has reported regulatory
14.7% Core Tier 1(N1.1) and 40.6% Total Capital (N1.0) capital
adequacy ratios; these improved from, respectively, 6.6% and
18.3% reported as of 31 December 2014. As a result, the size of
Autotorgbank's total regulatory capital is close to its loan
book, providing very comfortable buffer against any further loan
book impairment. In addition, other assets, that account for over
50% of the bank's total assets, comprise mainly cash equivalents
and money-market investments with a very low level of risk.

Not only Autotorgbank's capital adequacy improved, asset risks
also substantially decreased as the loan book seasoned: as of 1
November 2016, gross loan book stood at RUB4.8 billion having
contracted from RUB7.8 billion as of December 31, 2014; while and
loan loss reserves (47% of gross loans) now substantially exceed
overdue loans (21% of gross loans).

Despite the bank's currently small size, the captive nature of
its operations and low-cost business model enables it to remain
profitable in the challenging and highly competitive operating
environment. The bank reported net income of RUB34 million in the
first nine months of 2016 and we expect it to remain profitable
as we expect its credit costs to decline. Moreover, recently
stabilized business conditions combined with high involvement
into business operations of its controlling shareholder, Major
Group - the leading Russian car seller, should provide more
business opportunities for Autotorgbank.

In addition, Autotorgbank reports strong liquidity profile owing
to very low reliance on wholesale funds and a large liquidity
cushion (includes cash and cash equivalents, liquid securities
and short-term deposits with banks), which exceeds the bank's
total customer funds (excluding subordinated loans).

WHAT COULD MOVE THE RATINGS UP/DOWN

An improved business diversification could lead to upgrade of
Autotorgbank's BCA and long-term ratings in the medium term,
provided there is no significant deterioration of its solvency
metrics from the current levels.

The ratings could be downgraded if Autotorgbank's currently
strong solvency metrics to deteriorate or if the financial
performance of its controlling shareholder were to weaken,
creating substantial business and financial risks for the bank.

PRINCIPAL METHODOLOGY

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


IDEYA BANK: Put On Provisional Administration, License Revoked
--------------------------------------------------------------
The Bank of Russia, by its Order No. OD-4616, dated December 19,
2016, revoked the banking license of Krasnodar-based credit
institution public joint-stock company IDEYA Bank (PJSC IDEYA
Bank) from December 19, 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, repeated violations within a year of the
requirements of Article 7 (except for Clause 3 of Article 7) of
the Federal Law "On Countering the Legalisation (Laundering) of
Criminally Obtained Incomes and the Financing of Terrorism" and
the related Bank of Russia regulations, application of
supervisory measures envisaged by the Federal Law "On the Central
Bank of the Russian Federation (Bank of Russia)", and taking into
account the real threat to the interests of creditors and
depositors.

PJSC IDEYA Bank implemented high-risk lending policy and did not
create loan loss provisions adequate to the risks assumed.  In
addition, the credit institution did not comply with the
requirements of the legislation and Bank of Russia regulation on
anti-money laundering and the financing of terrorism in terms of
timely reliable reporting to the authorized body.  The rules of
internal controls on anti-money laundering and the financing of
terrorism did not comply with Bank of Russia regulations. The
credit institution's activity was aimed at dubious transactions.

The management and owners of the credit institution did not take
measures to normalize its activities.  Under such circumstances
the Bank of Russia decided to remove PJSC IDEYA Bank from the
banking market.

The Bank of Russia, by its Order No. OD-4617, dated December 19,
2016, appointed a provisional administration to PJSC IDEYA Bank
for the period until the appointment of a receiver pursuant to
the Federal Law "On Insolvency (Bankruptcy)' or a liquidator
under Article 23.1 of the Federal Law "On Banks and Banking
Activities".  In accordance with federal laws, the powers of the
credit institution's executive bodies are suspended.

PJSC IDEYA Bank is a member of the deposit insurance system. The
revocation of banking license is an insured event envisaged by
Federal Law No. 177-FZ "On Insurance of Household Deposits with
Russian Banks" regarding the bank's obligations on deposits of
households determined in accordance with the legislation.  This
Federal Law provides for the payment of insurance indemnity to
the bank's depositors, including individual entrepreneurs, in the
amount of 100% of their balances but not exceeding the total of
RUR1.4 million per depositor.

According to the financial statements, as of December 1, 2016,
PJSC IDEYA Bank ranked 264th by assets in the Russian banking
system.


MIP BANK: Put on Provisional Administration, License Revoked
------------------------------------------------------------
The Bank of Russia, by its Order No. OD-4614, dated December 19,
2016, revoked the banking license of Moscow-based credit
institution Joint-Stock Commercial Bank MIP BANK (Joint-Stock
Company) (JSCB MIP BANK (JSC)) from December 19, 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 and the repeated application of measures envisaged by
the Federal Law "On the Central Bank of the Russian Federation
(Bank of Russia)" over the year, and taking into account the real
threat to the interests of creditors and depositors.

JSCB MIP BANK (JSC) placed funds in low quality assets and did
not create provisions adequate to the risks assumed.  Moreover,
the credit institution was involved in dubious operations.  The
management and owners of the bank did not take effective and
sufficient measures to bring its activities back to normal and
under such circumstances, the Bank of Russia decided to remove
JSCB MIP BANK (JSC) from the banking market.

The Bank of Russia, by its Order No. OD-4615, dated December 19,
2016, appointed a provisional administration to JSCB MIP BANK
(JSC) for the period until the appointment of a receiver pursuant
to the Federal Law "On Insolvency (Bankruptcy)" or a liquidator
under Article 23.1 of the Federal Law "On Banks and Banking
Activities".  In accordance with federal laws, the powers of the
credit institution's executive bodies are suspended.

JSCB MIP BANK (JSC) 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 no more than RUR1.4 million per
depositor.

According to the financial statements, as of December 1, 2016,
JSCB MIP BANK (JSC) ranked 381st by assets in the Russian banking
system.


RYAZAN REGION: Fitch Affirms 'B+/B' Issuer Default Ratings
----------------------------------------------------------
Fitch Ratings has affirmed Russian Ryazan Region's Long-Term
Foreign and Local Currency Issuer Default Ratings (IDR) at 'B+'
with Stable Outlook, Short-Term Foreign Currency IDR at 'B' and
National Long-Term Rating at 'A(rus)' with Stable Outlook.

The region's outstanding senior unsecured domestic bonds have
been affirmed at 'B+' and 'A(rus)'.

The affirmation reflects Fitch's view that Ryazan's direct risk
will remain high but stable while the region's fiscal performance
will be satisfactory for the ratings over the medium term.

KEY RATING DRIVERS

The 'B+' rating reflects the region's high debt and a weak
Russian institutional framework. It also reflects the region's
satisfactory fiscal performance amid stable economic prospects.

Fitch expects the region's direct risk to increase up to 75%-80%
of current revenue in 2016-2018, from an average of 70% in 2011-
2014. The region's administration managed to contain interim
direct risk at RUB26.8bn at end-9M16, little changed from 2014-
2015.

Ryazan's debt servicing ratio remains weak, with direct debt
servicing exceeding 2x the region's operating balance in 2015.
Additionally, the region's debt payback period in 2015 was over
nine years, which is substantially more than the average maturity
of the region's debt portfolio of three years. Ryazan's exposure
to refinancing risk has increased, as 60% of its debt matures in
2016-2018 (45% at end-2015).

Refinancing risk is in part mitigated by an increasing share of
lower-cost federal budget loans, which have a 0.1% interest per
annum. The region continued to repay its bonds and bank loans,
replacing them with federal budget loans. As of 1 October 2016
was 67% composed of federal budget loans (43% at end-2015), 31%
bank loans (50%) and 2% domestic bonds (7%).

Russia's institutional framework for local and regional
governments (LRGs) is a constraint on the region's ratings. It
has a shorter track record of stable development than many of its
international peers. Weak institutions lead to limited
predictability of Russian LRGs' budgetary policies, which tend to
be shaped by the federal government's constant reallocation of
revenue and expenditures within government tiers.

Fitch expects Ryazan to post an operating surplus of 6%-7% of
operating revenue in 2016-2018, sufficient to cover interest
payments. Fitch forecasts are based on the region's resilient tax
base, which should drive a 4%-5% yoy increase of operating
revenue in 2016-2018, and on continued operating spending (opex)
restraint.

Ryazan posted an interim operating margin of 10.4% at end-9M16
(end-2015: 8.6%), while its interim balance before debt variation
turned positive after a negative 2.1% of total revenue in 2015.
This was underpinned by spending optimisation alongside stable
revenue. Fitch expect the region to post a moderate deficit
before debt variation from 2016 onwards at about 5%-7% of total
revenue, driven by capex funding.

In Fitch's view, the region's self-financing capacity should
remain satisfactory, with capital revenue and current balance
covering about 60% of capex (2011-2015: average 64%). At the same
time, Fitch expects annual capex to fall to 12% of total
expenditure over 2016-2018 from an average 20% over 2011-2015.

The region's latest forecast sees the local economy growing 1%-
2.5% annually in 2016-2018. According to the administration's
preliminary estimates, the local economy contracted 0.9% yoy in
real terms in 2015 after expanding 1.7% a year earlier. The
region's economy is modest in the national context but is fairly
diversified and local producers benefit from the region's close
proximity to Moscow, the country's largest market.

RATING SENSITIVITIES

A positive rating action could result from improving fiscal
performance, leading to a smaller budget deficit below 5% of
total revenue and an improved direct risk-to-current revenue
ratio of less than 70% on a sustained basis.

Increased total indebtedness with net overall risk above 90% of
total revenue, accompanied by persistent refinancing pressure and
a negative current balance, would lead to a downgrade.


VOLGOGRAD REGION: Fitch Affirms 'B+/B' Issuer Default Ratings
-------------------------------------------------------------
Fitch Ratings has affirmed Volgograd Region's Long-Term Foreign
and Local Currency Issuer Default Ratings (IDR) at 'B+', Short-
Term Foreign Currency IDR at 'B' and National Long-Term Rating at
'A(rus)'. The Outlooks on the Long-Term Ratings are Stable. The
region's outstanding senior unsecured domestic bond issues have
been affirmed at 'B+' and 'A(rus)'.

The affirmation reflects Fitch's unchanged base case scenario
regarding the region's current weak budgetary performance and
stabilising debt over the medium term.

KEY RATING DRIVERS

The 'B+' rating reflects the region's historically weak -- albeit
expected to improve over the medium term -- budgetary performance
and high direct risk due to a persistent deficit in the past. The
ratings also consider the region's economic stagnation amid a
sluggish national economy and a weak institutional framework for
Russian sub-nationals. Positively, Volgograd has an
industrialised economy with a strong tax base.

Fitch projects a moderate improvement of operating performance
over the medium term, with the current balance improving to 3% of
current revenue, reversing the negative trend of the last five
years. Fitch also expect deficit before debt variation to narrow
to 3%-5% of total revenue over the medium term from an average
12% in 2011-2015, driven by the requirements imposed by the
Ministry of Finance as a condition for granting budget loans to
the region.

The region's administration is implementing extensive cost-
cutting measures in operating and capital expenditure. Volgograd
is reviewing the list of social aid recipients, freezing wages
and optimising the network of budgetary institutions. The region
plans to have a balanced budget in 2017-2019, although Fitch
conservatively project a continuing, albeit gradually narrowing,
deficit. Fitch sees limited scope to sharply reverse the five-
year weak performance, given stagnating tax revenues and the
rigidity of most budget expenditure.

Fitch forecasts direct risk will stabilise at below 70% of
current revenue, due to the expected narrowing of the budget
deficit. For 10M16, direct risk moderately increased to RUB49bn
from RUB47bn at end-2015 as the region contracted RUB7.7bn budget
loans to refinance maturing bonds and bank loans. As a result,
the proportion of low-cost funding exceeded 55% of direct risk at
November 1, 2016, up from 36% at end-2015.

Refinancing risk is lower than the region's 'B' category peers.
In its debt policy, Volgograd relies on bonds, which comprise 26%
of its debt stock, and three-year banks loans (19%). About 80% of
maturities are spread between 2017 and 2019; by end-2016
Volgograd will need to repay RUB4.7bn, or 10% of its direct risk.
The administration plans to fund 2016 refinancing needs with bank
loans and budget loans, and plans to issue new bonds in 2017.

Volgograd has an industrialised economy with a concentrated tax
base. The top 10 taxpayers are subsidiaries of large national
companies operating in the oil & gas, power generation,
transportation and financial sectors. They contributed about 40%
of total tax revenue in 2015, which makes the region's revenue
vulnerable to economic cycles. The region's administration
estimates that GRP is stagnating in 2016 and expects a 1%-3%
annual growth in 2017-2019, supported by development of local
industries.

Russia's institutional framework for sub-nationals is a
constraining factor on the region's ratings. Frequent changes in
the allocation of revenue sources and in the assignment of
expenditure responsibilities between the tiers of government
hampers the forecasting ability of local and regional governments
(LRGs) in Russia.

RATING SENSITIVITIES

Stabilisation of direct risk at below 70% of current balance and
sustainable improvement of the operating balance that is
sufficient to cover interest payments could lead to an upgrade.

Inability to curb continuous growth of total indebtedness,
accompanied by an increase in refinancing pressure and a negative
operating balance, would lead to a downgrade.



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SERBIA: Fitch Affirms 'BB-' Long-Term Issuer Default Ratings
------------------------------------------------------------
Fitch Ratings has affirmed Serbia's Long-Term Foreign and Local
Currency Issuer Default Ratings (IDR) at 'BB-' with a Stable
Outlook. The issue ratings on Serbia's senior unsecured long-term
foreign and local currency bonds have also been affirmed at
'BB-'. The Short-Term Foreign Currency and Local Currency IDRs
have been affirmed at 'B' and the issue ratings on Serbia's
senior unsecured short-term foreign and local currency bonds have
also been affirmed at 'B'. The Country Ceiling has been affirmed
at 'BB-'.

KEY RATING DRIVERS

Serbia's 'BB-' IDRs reflect the following key rating drivers:

Serbia's structural features are broadly in line with 'BB'
medians. GDP per capita is on par with peers, while governance
indicators and ease of doing business indicators are slightly
better than 'BB' medians and improving. The recent opening of EU
accession negotiations and the implementation of the IMF
programme support prospects for further improvement in
development and governance indicators over the medium term. Fitch
expects stable economic policy, reflecting the continuity in key
positions in the government appointed in August 2016.

Structural reforms are advancing and could help support debt
tolerance, although there have been some delays. State-owned
enterprises (SoEs), which play a large role in the economy, are
being restructured and streamlined, with some being privatised or
declared bankrupt. Non-performing loans in the banking sector are
gradually declining but remain high, at 19.2% of gross loans at
October 2016. Significant capital and liquidity buffers in the
banking sector mitigate financial and economic risks.

Macroeconomic performance is a rating weakness despite recent
improvement. Following strong growth figures in the first three
quarters of 2016 that point to a broad-based cyclical recovery,
Fitch has revised its growth forecast for 2016 to 2.6% (2015:
0.7%). Fitch expects real GDP growth to approach 3% by 2018 as
investment remains dynamic and consumption is supported by rising
wages.

Potential growth is lower than peers and hampered by high
unemployment (15.2% at June 2016), unfavourable demographic
trends, a large informal sector, and restructuring needs in the
large public sector. Economic performance has historically been
more volatile than peers, with volatility of real GDP growth,
inflation and the real effective exchange rate all higher than
'BB' medians.

Fiscal consolidation is on track with the 2016 budget deficit
expected to narrow to 2.2% of GDP (2015: 3.7%) on the back of
robust revenue growth and contained spending. This will lead to
an expected primary surplus for the first time since 2006. Budget
outcomes have outperformed 'BB' medians since 2015. Fiscal
consolidation efforts are expected to slow over the forecast
horizon as the authorities approach their medium term target of a
headline budget deficit of 1% of GDP.

The level and structure of public debt are key rating weaknesses.
At an expected 74.6% of GDP at end-2016, public debt is much
higher than the 'BB' median of 51.4%. Although Fitch expects it
to decline in coming years as primary surpluses strengthen, it
will remain above peers. It is also subject to dinar
depreciation, as more than 75% is denominated in foreign currency
(BB median: 51.3%) and annual refinancing needs are above 10% of
GDP. Additionally, risks of contingent liabilities from SoEs will
continue to hit public finances. Guaranteed debt is already
incorporated in public debt figures, but transfers to SoEs are
likely to continue as their restructuring progresses.

Serbia runs a structural current account deficit (estimated at 4%
of GDP in 2016), although this has steadily declined since 2012
as FDI-related exports have strengthened. The current account
deficit has been fully covered by FDI inflows since 2015, leading
to a gradual decline in net external debt, which Fitch expects
will reach 25.7% of GDP at end-2016 (BB median 21.2%). The dinar
has stabilised against the euro (depreciating by 1.6% yoy in
November 2016), helped by lower inflation. FX reserves are ample,
covering more than five months of imports, and would be backed by
the precautionary IMF programme in case of external pressures.

SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO)

Fitch's proprietary SRM assigns Serbia a score equivalent to a
rating of 'BB' on the Long-Term FC IDR scale.

Fitch's sovereign rating committee adjusted the output from the
SRM to arrive at the final LT FC IDR by applying its QO, relative
to rated peers, as follows:

   -- Macro: -1 notch, to reflect weak medium term growth
      potential relative to peers, structural rigidities
      (including high unemployment, large informal economy and
      adverse demographics) and the large role of the public
      sector in the economy.

Fitch's SRM is the agency's proprietary multiple regression
rating model that employs 18 variables based on three year
centred averages, including one year of forecasts, to produce a
score equivalent to a LT FC IDR. Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within
Fitch criteria that are not fully quantifiable and/or not fully
reflected in the SRM.

RATING SENSITIVITIES

The Stable Outlook reflects Fitch's assessment that the upside
and downside risks are broadly balanced.

The main factors that, individually or collectively, could
trigger positive rating action are:

    -- An improvement in Serbia's medium-term growth prospects
    -- A material reduction in the general government debt to GDP
       ratio
    -- A reduction in net external debt resulting from a lower
       current account deficit and/or higher FDI inflows

The main factors that, individually or collectively, could
trigger negative rating action are:

    -- A reversal of fiscal consolidation, or the materialisation
       of large contingent liabilities on the government's
       balance sheet, that put the general government debt to GDP
       ratio on an upward path
    -- A recurrence of exchange rate pressures leading to a fall
       in reserves and a sharp rise in debt levels and the
       interest burden

KEY ASSUMPTIONS

Fitch assumes that world growth will reach 2.9% in 2017 and 2018,
while eurozone growth is forecast at 1.4% in both years.

Fitch assumes that EU accession talks and the IMF programme will
remain important policy anchors.



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GRIFOLS SA: Moody's Cuts Corporate Family Rating to 'Ba3'
---------------------------------------------------------
Moody's Investors Service has downgraded to Ba3 from Ba2 the
corporate family rating (CFR) and to Ba3-PD from Ba2-PD the
probability of default rating (PDR) of Grifols S.A. (Grifols), a
global healthcare company primarily focused on human blood
plasma-derived products and transfusion medicine.

The downgrade of the CFR reflect the following inter-related
drivers:

   -- Grifols leverage, as measured by Moody's-adjusted
      debt/EBITDA, will increase to 4.7x, pro forma for the
      announced USD1.85 billion largely debt-financed acquisition
      of Hologic Inc's NAT (Nucleic Acid Test) blood screening
      business, from 4.0x as of 30 September 2016

   -- Moody's expects that Grifols' leverage will slowly decrease
      to 4.5x over the next 12-18 months based on a low-single-
      digit organic growth in the Diagnostics division and a
      high-single-digit organic growth in the Bioscience division

Concurrently, Moody's has downgraded to Ba2 from Ba1 the ratings
of the senior secured bank credit facilities, including the
USD700 million term loan A due 2020, the USD3.25 billion term
loan B due 2021, the EUR400 million term loan B due 2021, and the
USD300 million revolving credit facility due 2019. The bank
credit facilities are co-borrowed by Grifols World Wide
Operations Ltd and Grifols World Wide Operations USA, Inc.
Moody's also downgraded to B2 from B1 the rating of the USD1
billion senior unsecured notes due 2022 issued by Grifols World
Wide Operations Ltd. Finally, Moody's has assigned a Ba2 rating
to the additional proposed USD1.7 billion term loan due 2023. The
outlook on all ratings is stable.

RATINGS RATIONALE

"The acquisition of Hologic's NAT (Nucleic Acid Test) blood
screening business will be largely debt-financed therefore at
closing of the acquisition Grifols' leverage will increase
notably by 0.7x to 4.7x. We previously expected that Grifols will
delever below 4.0x by the end of 2016. We currently expect that
the company will not delever below 4.0x until the end of 2019.
Therefore Grifols' expected leverage is now more commensurate
with the Ba3 CFR," says Andrey Bekasov, AVP and Moody's lead
analyst for Grifols.

"The acquisition makes strategic sense for Grifols because it
will notably diversify its product exposure and increase the
share of the diagnostics products in terms of their contribution
to Grifols' total EBITDA. The acquisition will also improve
Grifols' profitability, as measured by Moody's-adjusted EBITDA,
by over 2% to 34% pro forma for the acquisition based on Moody's
estimates. However, the organic growth prospects for the types of
the diagnostics assays, which Grifols is acquiring, are in the
low-single-digit percent range because it is a fairly mature
market", adds Andrey Bekasov.

Grifols S.A.'s (Grifols) Ba3 corporate family rating (CFR)
reflects: (1) the company's good scale with a high degree of
vertical integration and leading market positions in human blood
plasma-derived products; (2) the barriers to entry including, but
not limited to, a high degree of capital-intensity and regulatory
constraints in a consolidated market; and (3) the favourable
fundamental drivers, with volume growth supported by improving
diagnostics.

Conversely, the rating reflects: (1) the company's narrow, albeit
improving, diversification, with a high dependence on human blood
plasma-derived products and vulnerability to market imbalances
and negative pricing movements; (2) our view of the potential
high impact -- albeit low probability -- of safety risks relating
to product contamination; and (3) leverage of 4.7x at closing of
the acquisition of Hologic's NAT blood screening business, with
slow deleveraging expected.

The acquisition of Hologic Inc's NAT blood screening business is
subject to customary closing and regulatory approvals, and
Grifols expects to close it during the first quarter 2017. This
business has high barriers to entry with only a few global
leading players. However, it has also relatively higher customer
concentration because customers include several large Red Cross
organizations (for example, The Japanese Red Cross, The American
Red Cross), which results in reasonably volatile earnings.
Grifols will acquire a complete family of Procleix (trademark)
assays for blood screening and related assets including
manufacturing facilities and intellectual properties from
Hologic. Moody's understands that Procleix assays have good
market shares and compete mainly with Roche Holding AG's (A1
stable) diagnostics division products.

Moody's expects that pro forma for the acquisition Grifols will
maintain good liquidity supported by no meaningful debt
amortizations until 2019; undrawn USD300 million revolving credit
facility and cash of around EUR700 million; positive free cash
flows of around EUR220 million in 2017; and good headroom under
its senior secured bank credit facilities' single financial
covenant.

The Ba2 senior secured bank credit facilities rating reflect the
loss absorption cushion provided by the senior unsecured notes
rated B2. The Ba3-PD probability of default rating (PDR) is in
line with the Ba3 CFR reflecting Moody's 50% corporate family
recovery rate.

RATIONALE FOR THE POSITIVE OUTLOOK

The stable outlook reflects Moody's view that Grifols' leverage
will slowly decrease to 4.5x over the next 12-18 months. The
stable outlook does not incorporate significant capital structure
changes from shareholder friendly actions or large debt-financed
acquisitions.

WHAT COULD CHANGE THE RATING UP/DOWN

Positive rating pressure could develop if:

   -- Grifols' leverage, as measured by Moody's-adjusted
      debt/EBITDA, were to decrease below 4.0x sustainably;

   -- CFO/Debt were to improve sustainably above 15%; and

   -- Stable operating performance were to continue with market
      share gains in major products

Negative rating pressure could develop if:

   -- Grifols' leverage, as measured by Moody's-adjusted
      debt/EBITDA, were to remain over 5.0x for a prolonged
      period;

   -- CFO/Debt were to fall towards 5%;

   -- Profitability, as measured by Moody's-adjusted EBITDA
      margin, were to drop notably;

   -- Liquidity were to deteriorate significantly; or

   -- Quality concerns were to emerge about Grifols' major
      products

List of Affected Ratings:

Downgrades:

   Issuer: Grifols S.A.

   -- LT Corporate Family Rating, Downgraded to Ba3 from Ba2

   -- Probability of Default Rating, Downgraded to Ba3-PD from
      Ba2-PD

   Issuer: Grifols World Wide Operations Ltd.

   -- Backed Senior Secured Bank Credit Facilities, Downgraded to
      Ba2 from Ba1

   -- Backed Senior Unsecured Regular Bond/Debenture, Downgraded
      to B2 from B1

Assignments:

   Issuer: Grifols World Wide Operations Ltd.

   -- Backed Senior Secured Bank Credit Facility, Assigned Ba2

Outlook Actions:

   Issuer: Grifols S.A.

   -- Outlook, Remains Stable

   Issuer: Grifols World Wide Operations Ltd.

   -- Outlook, Remains Stable

The principal methodology used in these ratings was Global
Medical Product and Device Industry published in October 2012.

Grifols S.A. (Grifols), headquartered in Barcelona, Spain, is a
global healthcare company primarily focused on human blood
plasma-derived products and transfusion medicine. Grifols
extracts essential proteins from human blood plasma, the liquid
portion that constitutes 50% of the total blood volume, and uses
these proteins to produce and distribute therapeutic medical
products to treat a range of rare, chronic and acute conditions.
Grifols also supplies devices, instruments and assays for
clinical diagnostic laboratories. Grifols is listed (also via ADR
in the US) on the Madrid Stock Exchange and is part of the IBEX
35 Index.



===========
T U R K E Y
===========


TURK EXIMBANK: S&P Affirms Then Withdraws 'BB/B' FC Ratings
-----------------------------------------------------------
S&P Global Ratings revised its outlook on Export Credit Bank of
Turkey (Turk Eximbank), Turkey's official state export credit
agency, to stable from negative.  At the same time, S&P affirmed
its 'BB/B' foreign currency and 'BB+/B' local currency long- and
short-term sovereign credit ratings on the bank.  S&P
subsequently withdrew the ratings at the issuer's request.

                             RATIONALE

The outlook revision reflects a similar action on the Republic of
Turkey.

At the time of withdrawal, the ratings on TÅrk Eximbank were
equalized with those on its sole owner, the Republic of Turkey
(foreign currency BB/Stable/B, local currency BB+/Stable/B;
unsolicited ratings).  The ratings reflected S&P's opinion that
there was an almost certain likelihood that the Turkish
government would provide timely and sufficient extraordinary
support to Turk Eximbank in case of financial distress.  S&P's
rating approach for Turk Eximbank is based on S&P's view of the
bank's:


   -- Critical role in supporting Turkish exports, which is a key
      focus of national economic development; and

   -- Integral link with the Turkish government through the
      sovereign's sole ownership, government control of the board
      of directors, and the sovereign's guarantee on the ultimate
      recovery of losses on loans extended by the bank.

Turk Eximbank is the official state export credit agency.  Its
mandate is to support foreign trade and Turkish contractors and
investors operating abroad, through credit, guarantee, and
insurance programs.  The bank does not compete against commercial
banks, but works closely with them, encouraging them to increase
their support for the export sector.  As well as offering direct
lending, the bank also provides insurance and guarantees to
Turkish exporters.

                            OUTLOOK

At the time of withdrawal, the stable outlook on Turk Eximbank
mirrored that on Turkey.



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


PRIVATBANK: US$5.5BB Balance Sheet Hole Prompts Nationalization
---------------------------------------------------------------
Roman Olearchyk and Neil Buckley at The Financial Times report
that Ukraine's central bank governor said on Dec. 19 a US$5.5
billion hole in the balance sheet of PrivatBank, the country's
largest lender, had prompted its nationalization on Dec. 18.

According to the FT, the government pledged to fully protect
depositors and said the takeover, proposed by the central bank
and approved by the nation's national security council, was
needed to "preserve stability of the country's financial system".

The government, as cited by the FT, said the transaction, which
placed 100% of the bank into state ownership, was agreed with
Igor Kolomoisky and Gennady Bogolubov, PrivatBank's oligarch
majority co-owners.

In a televised press conference, Valeria Gontareva, the central
bank chief, said the bank had been undermined by widescale
related-party lending, to entities close to the owners, the FT
relates.  She said the owners had not kept up with commitments to
recapitalize the bank, the FT notes.

Resolving the issues is central to a bank sector clean-up plan
being implemented as part of a US$17.5 billion International
Monetary Fund loan program, the FT states.

Oleksandr Danyliuk, Ukraine's finance minister, said the
government would provide necessary funds to recapitalize the bank
through an issue of domestic bonds that are to be purchased by
the central bank, the FT relays.

PrivatBank is the largest commercial bank in Ukraine, in terms of
the number of clients, assets value, loan portfolio and taxes
paid to the national budget.  PrivatBank has its headquarters in
Dnipropetrovsk, in central Ukraine.



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


DRAX POWER: S&P Affirms 'BB' Long-Term CCR, Outlook Stable
----------------------------------------------------------
S&P Global Ratings said that it affirmed its 'BB' long-term
corporate credit rating on U.K.-based power generator Drax Power
Ltd. and removed it from CreditWatch with positive implications,
where it was placed on Nov. 25, 2016.  The outlook is stable.

At the same time, S&P placed its 'BB+' issue rating on Drax's
senior secured credit facility on CreditWatch negative.  The
recovery rating on this debt is '2', indicating S&P's expectation
of recovery in the lower half of the 70%-90% range in the event
of a payment default.

The affirmation follows Drax's announcement that it intends to
acquire retail company Opus Energy and four open-cycle gas
turbine (OCGT) development projects, in line with its strategy to
reduce the volatility of its earnings.  The acquisitions are
pending Drax being awarded regulated remuneration by the U.K.
government under a "contract for difference" (CfD).  The
acquisitions are fairly large relative to Drax itself at about
GBP360 million, compared with Drax's existing drawn debt of
GBP330 million, and would result in higher leverage than S&P
expected under its previous base case.  S&P removed the ratings
from CreditWatch positive as it now expects S&P Global Ratings-
adjusted funds from operations (FFO) to debt to remain at 30%-45%
over the next three years, in line with the existing rating.  S&P
anticipates that these acquisitions would leave Drax with limited
headroom in its financial metrics for the current rating in 2017
and 2018.

If the CfD were not awarded and the acquisitions therefore did
not occur, S&P believes that Drax would still maintain adjusted
FFO to debt above 30%, commensurate with the 'BB' rating.

The placement of the senior secured debt on CreditWatch negative
reflects S&P's view that the additional priority liabilities
resulting from the financing of the acquisitions could lower
recovery prospects for senior secured debtholders.  The outcome
of the CreditWatch depends on whether the acquisitions take place
and how they are financed in the long term.

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

   -- Be awarded regulated remuneration under the CfD at a price
      of no less than GBP100 per Megawatt hour (MWh) in the next
      three months;

   -- Execute the acquisitions of Opus Energy and four OCGTs in
      early 2017; and

   -- Have limited capital expenditure (capex) needs following
      completion of most major capex projects.

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

   -- Positive free cash flow for the business over the next
      year, assuming no further material acquisitions or
      expansions in other areas; and

   -- FFO to debt just above 30% if the acquisitions go ahead in
      2017 and 2018.

S&P views Drax's operations as exposed to more uncertainty than
most of its peers, related to the granting of the CfD, political
and regulatory risk in the sector, and the company's relatively
low absolute profitability.  This leads S&P to apply a negative
adjustment to the rating.  Following the CfD being granted, S&P
expects to maintain this negative adjustment to reflect Drax's
position at the low end of its financial risk profile category,
as well as the execution risk in relation to the proposed
acquisitions.

The stable outlook on Drax reflects S&P's view that, if Drax was
granted CfD contracts at GBP100/MWh-GBP105/MWh on its third
biomass unit, the company would acquire Opus Energy and four
OCGTs.  S&P's base case assumes that Drax will be able to
maintain its ratio of FFO to debt above 30% after the
acquisition.  The ratings would remain at 'BB' if the CfD were
not granted, provided the acquisition does not take place as per
the company's statement.

S&P could lower the ratings if Drax was to encounter unexpected
problems coupled with less supportive power prices and spreads,
resulting in the adjusted FFO-to-debt ratio falling below 30%.
This could also happen if the acquisition goes ahead but the
benefit from retail activities fails to materialize or if the CfD
is not awarded, affecting profitability.

S&P would raise the ratings on Drax by one notch if it projects
that the company's adjusted FFO to debt will remain comfortably
above 45% over the next three years.  Given the recently
announced acquisition, S&P believes that this is unlikely in the
medium term, either because financial headroom will be limited
after the acquisition is completed or because the company is
likely to pursue other alternative acquisitions if that one does
not go through.

The CreditWatch negative on Drax's senior secured debt reflects
the likelihood that the potential additional debt resulting from
the acquisitions will reduce recovery prospects for holders of
that tranche of debt, leading to a lower rating.  S&P aims to
resolve the CreditWatch once the acquisition is confirmed and the
final financing structure is in place.


HAWES SIGNS: Enters Administration After CVA Fails
--------------------------------------------------
Sam Metcalf at TheBusinessDesk reports that Hawes Signs has
entered administration after 67 years of trading.

Hawes Signs, which is based on Moulton Park, is one of the
largest signage businesses in the UK, but has appointed
administrators from Leonard Curtis's Manchester office to look
after the day-to-day running of the company, TheBusinessDesk
relates.

Hawes was sold to the HLD Group in January 2015 after the loss of
a major customer left the business struggling to survive,
TheBusinessDesk recounts.  The company had been trading under a
company voluntary arrangement, but this appears to have failed,
TheBusinessDesk notes.

In its latest available company results, Hawes turned over
GBP18.1 million for the year ending December 31, 2014, and lost
GBP2.9 million -- up from a loss of GBP296,894 in 2013,
TheBusinessDesk discloses.  Results show that the company owed
over GBP7 million to creditors, TheBusinessDesk states.  At the
time, the company employed 203 people, according to
TheBusinessDesk.


MOTOR PLC 2016-1: Moody's Assigns Ba3 Rating to Class F Notes
-------------------------------------------------------------
Moody's Investors Service has assigned the following definitive
ratings to notes issued by Motor 2016-1 plc:

   -- GBP528 million Class A Notes, Assigned Aaa (sf)

   -- GBP15 million Class B Notes, Assigned Aa2 (sf)

   -- GBP30 million Class C Notes, Assigned A1 (sf)

   -- GBP9 million Class D Notes, Assigned Baa1 (sf)

   -- GBP13 million Class E Notes, Assigned Baa3 (sf)

   -- GBP5 million Class F Notes, Assigned Ba3 (sf)

The transaction is a cash securitisation of agreements entered
into for the purpose of financing vehicles to obligors in the
United Kingdom by Santander Consumer (UK) plc (NR)("SC UK"), a
wholly owned subsidiary of Santander UK PLC (A1 Senior Unsecured;
Aa2/P-1 (cr)) ("Santander UK"). This is the fifth public
securitisation transaction in the United Kingdom sponsored by SC
UK. The originator will also act as the servicer of the portfolio
during the life of the transaction. Unlike the previous Motor
2015-1 PLC transaction this transaction does not include any RV
exposure and has a longer revolving period of two years.

The portfolio of underlying assets consists of conditional sale
agreements granted to individuals resident in the United Kingdom
to finance the purchase of new and used vehicles. Conditional
sale agreements are forms of secured financing and can include
some balloon payments. As of November 1, 2016, the portfolio
consisted of 90,397 agreements mainly originated between 2014 and
2016, with a weighted average seasoning of eleven months and a
weighted average remaining term of 42 months. Used cars make up
89.9% of the pool, and the weighted average deposit of the
original principal balance is 19.0%. There is no limit to the
percentage of used vehicles in the pool, but balloon payments are
limited to 7% and the weighted average term cannot exceed 48
months.

RATINGS RATIONALE

According to Moody's, the transaction benefits from credit
strengths such as a granular portfolio, good excess spread and a
1.55% liquidity reserve which will provide liquidity in the event
of a servicer disruption. This liquidity reserve is fully funded
at closing, sized at 1.55% of the sum of the Class A-E initial
notes balance, although it will only provide support to pay
senior expenses, and coupons on the Class A-E notes in the event
of a cash flow disruption.

In addition, the contractual documents will include the
obligation of the cash administrator to estimate amounts due in
the event a servicer report is not available. This reduces the
risk of any technical non-payment of interest on the Notes.

However, Moody's notes some credit weaknesses. The transaction
has rating linkage to Santander UK (A1 Senior Unsecured; Aa2/P-1
(cr)) and Banco Santander S.A. (Spain) ((P)A3 Senior Unsecured;
A3/P-2 (cr)). In particular, Santander UK, which is the parent
entity of the unrated servicer, is acting as a seller account
bank and issuer collection account bank in the transaction. In
addition, the ultimate parent Banco Santander S.A. (Spain) is
acting as back-up servicer facilitator (BUS facilitator).

A risk common to auto ABS transactions in the UK and present in
this transaction is the possibility that the obligor may exercise
the right of voluntary termination as per the Consumer Credit
Act. The potential for additional loss due to this risk has been
incorporated into Moody's quantitative analysis.

Moody's analysis focused, among other factors, on (i) an
evaluation of the underlying portfolio of financing agreements
considering concentration limits during the revolving period;
(ii) the macroeconomic environment; (iii) historical performance
information; (iv) the credit enhancement provided by
subordination and the excess spread; (v) the liquidity support
available in the transaction by way of principal to pay interest
and the liquidity reserve; (vi) the back-up servicing
facilitator; (vii) the legal and structural integrity of the
transaction.

Moody's assumed a gross default rate of 3.25% and a static
recovery rate of 40.0% for the initial portfolio and the
replenished portfolios. The default assumption takes into account
both defaults by the obligors and voluntary terminations. A
coefficient of variation of 52% has been used as the other main
input for Moody's cash flow model, ABSROM, to calibrate the Aaa
portfolio credit enhancement for this portfolio to 12.5%.

Parameter sensitivities for this transaction have been calculated
in the following manner: Moody's tested 9 scenarios derived from
the combination of mean default rate: 3.25% (base case), 3.5%
(base case + 0.25%), 3.75% (base case + 0.5%) and recovery rate:
40% (base case), 35% (base case - 5%), 30% (base case - 10%). The
3.25% / 40% scenario would represent the base case assumptions
used in the initial rating process. At the time the rating was
assigned, the model output indicated that Class A would have
achieved Aa1 even if the mean default rate was as high as 3.75%
with a recovery rate as low as 30% (all other factors unchanged).

Parameter sensitivities provide a quantitative, model-indicated
calculation of the number of notches that a Moody's-rated
structured finance security may vary if certain input parameters
used in the initial rating process differed. The analysis assumes
that the deal has not aged. It is not intended to measure how the
rating of the security might migrate over time, but rather, how
the initial rating of the tranches might differ as certain key
parameters vary. Therefore, Moody's analysis encompasses the
assessment of stress scenarios.

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

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

Provisional ratings were assigned on 29 November 2016.

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

Factors that may lead to an upgrade of the mezzanine and junior
note ratings include significantly better than expected
performance of the pool and an increase in credit enhancement of
notes due to deleveraging.

Factors that may lead to a downgrade of the ratings of the notes
include (i) a decline in the overall performance of the pool,
(ii) a significant deterioration of the credit profile of
transaction parties like the servicer Santander Consumer (UK) plc
and the cash administrator Elavon Financial Services DAC, UK
Branch.


REGAIN POLYMERS: Enters Into Company Voluntary Arrangement
----------------------------------------------------------
Rob Preston at MRW reports that Regain Polymers has entered a
company voluntary arrangement (CVA) with its creditors.

A CVA ,including settlement of debt, has been accepted by
creditors, meaning the company can continue to trade, MRW
relates.

It is understood the business had accrued significant debt from
historic developments and the deal will keep it from going into
administration, MRW notes.

According to MRW, Director James Patchett --
james.patchett@turpinba.co.uk -- of accountancy firm Turpin
Barker Armstrong, joint nominees for the deal, said: "A meeting
was held on December 7, proposals were approved and [. . .] all
creditors were notified of the outcome."

Formed in 1991, Regain Polymers specializes in the development
and production of innovative structural components made from
recycled plastic waste.


TOWD POINT 2016-GRANITE3: Moody's Rates GBP7.3MM Class F Notes B2
-----------------------------------------------------------------
Moody's Investors Service has assigned definitive credit ratings
to the following notes issued by Towd Point Mortgage Funding
2016-Granite3 plc:

   -- GBP152.1 million Class A Floating Rate Notes due August
      2044, Definitive Rating Assigned Aaa (sf)

   -- GBP20.5 million Class B Floating Rate Notes due August
      2044, Definitive Rating Assigned Aa2 (sf)

   -- GBP8.8 million Class C Floating Rate Notes due August 2044,
      Definitive Rating Assigned A2 (sf)

   -- GBP 11.7 million Class D Floating Rate Notes due August
      2044, Definitive Rating Assigned Baa2 (sf)

   -- GBP7.3 million Class E Floating Rate Notes due August 2044,
      Definitive Rating Assigned Ba2 (sf)

   -- GBP7.3 million Class F Floating Rate Notes due August 2044,
      Definitive Rating Assigned B2 (sf)

Moody's has not rated the subordinated Class Z1 Notes, the Class
Z2 Notes, the SDC Certificates, the DC1 Certificates and the DC2
Certificates.

The GBP292.4 million portfolio as of October 31, 2016 is
comprised of 27,212 unsecured personal loans to borrowers in the
UK, which were initially originated by Landmark Mortgages Limited
(formerly Northern Rock plc, Northern Rock (Asset Management) plc
and NRAM plc) ("Landmark") as a part of the "Together" mortgage
linked unsecured personal loan product or as a "Mortgage Plus
Unsecured Loan" product offered to borrowers at or about the same
time as they took out a secured mortgage loan. All of the loans
are unsecured and do not share in or benefit from any security
provided by the borrowers in respect of any linked mortgage loan.
The majority of loans comprising the pool were originated in the
years 2005 through 2007 and hence are 10.5 years seasoned.
Moody's notes that obligations of the borrower under the
unsecured personal loans are independent of the obligations of
the borrower to pay the amounts due under the associated mortgage
loans.

Moody's notes that the majority of loans comprising the pool are
currently financed through two outstanding warehouse transactions
rated by Moody's since December 2015 ("Neptune Unsecured
Warehouse 1 Limited" and "Neptune Unsecured Warehouse 2
Limited"). Additionally, Moody's has recently assigned ratings to
transactions financing the associated mortgage products: "Towd
Point Mortgage Funding 2016-Granite 1 plc", rated in April 2016,
and "Towd Point Mortgage Funding 2016-Granite 2 Plc", rated in
November 2016.

RATINGS RATIONALE

The rating of the Notes are based on an analysis of the
characteristics of the underlying unsecured loan pool, sector
wide and originator specific performance data, protection
provided by credit enhancement, the roles of external
counterparties including the delegated servicer and the
structural features of the transaction.

Default and PCE Analysis

Moody's determined the portfolio credit enhancement ("PCE") of
45.7%, the portfolio expected defaults of 24.4% and expected
recovery of 5.0% as input parameters for Moody's cash flow model,
which is based on a probabilistic lognormal distribution. Moody's
notes that 8.34% of the pool at closing already falls
automatically under the default definition of the transaction
specified as being 12 months or more in arrears. The entire
portfolio is being sold at par, whereby Class Z2 Notes (NR) are
being issued to fund the purchase of the 8.34% pool already in
default. Consequently, Moody's asset assumptions apply to the
non-defaulted balance of 91.66% of the pool.

Portfolio expected defaults of 24.4%: this is higher than the
EMEA unsecured loans average and is based on Moody's assessment
of the lifetime loss expectation for the pool taking into account
(i) the collateral performance of unsecured personal loans, as
provided by Landmark, (ii) the current macroeconomic environment
in the UK and the potential impact of future interest rate rises
on the performance of the unsecured loans, (iii) relatively high
share of loans related to borrowers with history of past or
current litigation and (iv) benchmarking with comparable
transactions in the UK market.

PCE of 45.7%: This is higher than the EMEA unsecured loans
average and follows Moody's assessment of the loan-by-loan
information taking into account the following key drivers (i) the
historic collateral performance described above; and (ii) the
loan characteristics of the pool being part of the Together loans
for which a mortgage balance is outstanding.

Operational Risk Analysis

Landmark is the contractual servicer delegating all its servicing
to Computershare Mortgage Services Limited ("Computershare", Not
rated). A back up servicer Topaz Finance Limited ("Topaz", Not
rated), back up delegated servicer Western Mortgage Services
Limited ("WMS", Not rated, part of Capita) and back up servicer
facilitator (Wilmington Trust SP Services (London) Ltd) have been
appointed at closing. Topaz and Computershare are both owned by
Computershare Investments (No3) Limited. If Computershare is
insolvent or defaults on its obligations under the back-up
delegated servicing agreement WMS will step in as delegated
replacement servicer and execute a delegated replacement
servicing agreement. If the back-up servicer Topaz is insolvent
or defaults a replacement back-up servicer will be appointed. In
case Topaz already acts in the role of replacement servicer, the
back-up servicer facilitator will on a reasonable endeavours
basis select a replacement within 30 days (to be appointed by the
Issuer). The relevant backup servicer is required to step in
within 90 days and perform the duties of the servicer or
delegated servicer (as applicable) if, amongst other things, the
servicer and/ or delegated servicer is insolvent or defaults on
its obligations under the servicing agreement or delegated
servicing agreement.

Elavon Financial Services DAC, UK Branch (subsidiary of Elavon
Financial Services DAC (Aa2/P-1)) is appointed as cash manager.
There is no back up cash manager in place at closing. To help
ensure continuity of payments the deal contains estimation
language whereby the cash flows will be estimated from the three
most recent servicer reports should the servicer report not be
available.

The collection account under the name of the servicer is held at
National Westminster Bank PLC ("NATWEST") (A3/P-2/A3(cr)). There
is a declaration of trust over the collection account in favour
of the Issuer and a daily sweep of the funds held in the
collection account into the issuer account bank. In the event
NATWEST rating falls below Baa3, the collection account will be
transferred to an entity rated at least Baa3. The issuer account
bank provider is Elavon Financial Services DAC, UK Branch
(subsidiary of Elavon Financial Services DAC (Aa2/P-1)) with a
transfer requirement if the rating of the account bank falls
below A3.

Transaction structure

The transaction is a static transaction. There is no funded
liquidity reserve fund in place at closing. On and from the step-
up date (Nov 2019 or circa 3 years from closing) the liquidity
reserve fund will be credited with amounts up to 1.7% of the
total Class A outstanding balance (subject to a floor of 1.0% of
original Class A outstanding balance at closing) and can be used
to pay senior fees and interest on Class A. Prior to the step up
date and until that liquidity reserve fund target is reached
liquidity is provided via a 365 day revolving liquidity facility
equal to 1.7% of the total Class A outstanding balance provided
by Wells Fargo Bank, National Association, London Branch (Wells
Fargo Bank, N.A (Aa1/P-1/Aa1(cr)). On and from the step-up date
the liquidity facility commitment reduces as amounts are credited
to the liquidity reserve fund. At closing, the liquidity facility
provides approx. three months of liquidity to the Class A
assuming Libor of 5.0%. Principal can be used as an additional
source of liquidity to meet shortfall on senior fees and interest
on the most senior outstanding Class. In addition, Moody's notes
that unpaid interest on the Class B, C, D, E and F is deferrable.
Non-payment of interest on the Class A Notes constitutes an event
of default.

Interest on the Notes (excluding Class A) is subject to a Net
Weighted Average Coupon (Net WAC) Cap. Net WAC additional amounts
are paid junior in the revenue waterfall being the difference
between the Class B, C, D, E and F stated coupon and the Net WAC
Cap. Net WAC additional amounts occur if interest payments to the
respective Notes are greater than the Net WAC Cap. Moody's
ratings assigned to the Class B, C, D, E and F do not address the
payment of Net WAC additional amounts.

Moody's notes that the Net WAC Cap formula defined in the deal
divides the scheduled weighted average loan rate net of fees by
the proportion of the rated notes to the aggregate current
balance of the loans, the latter itself defined as the aggregate
balance of all loans including loans that are less than 36 months
in arrears. Consequently, all other factors being equal, should
actual write-offs occur at a faster rate and below the 36 month
calculation cut-off, or should the aggregate current balance of
the loans become less than the rated notes, the Net WAC Cap
calculation result would decrease and potentially reduce the size
of promised interest payment to be received by investors under
the Class B through Class F floating rate Notes to below their
stated coupon and furthermore below the scheduled WAC of the
pool. Moody's views the likelihood of such scenario as consistent
with the ratings of the Notes.

Interest Rate Risk Analysis

As there are no swaps in the transaction, Moody's has modelled
the spread taking into account the minimum margin covenant of
Libor plus 2.4%. Due to uncertainty on enforceability of this
covenant, Moody's has taken the view not to give full credit to
this covenant. Instead, Moody's has stressed the interest rate of
the pool by assuming that loans revert to SVR yield equal to
Libor + 2.0%.

LOSS AND CASH FLOW ANALYSIS:

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

STRESS SCENARIOS:

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 ABS transaction are
calculated by stressing key variable inputs in Moody's primary
rating model. If the portfolio expected defaults were increased
from 24.4% of current non-defaulted balance to 29.2% of current
non-defaulted balance, and the PCE was increased from 45.7% to
54.9%, the model output indicates that the Class A Notes would
achieve a Aa3(sf) assuming that all other factors remained equal.

The principal methodology used in these ratings was Moody's
Approach to Rating Consumer Loan-Backed ABS published in
September 2015.

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

Provisional ratings were assigned on December 6, 2016.

Factors that would lead to an upgrade of the ratings include
economic conditions being better than forecast resulting in
better-than-expected performance of the underlying collateral or
higher actual recoveries than initially assumed.

Factors that would lead to a downgrade of the ratings include
economic conditions being worse than forecast resulting in worse-
than-expected performance of the underlying collateral,
deterioration in the credit quality of the counterparties and
unforeseen legal or regulatory changes.



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


RAVNAQ-BANK: S&P Affirms 'CCC+/C' Counterparty Credit Ratings
-------------------------------------------------------------
S&P Global Ratings revised its outlook on Uzbekistan-based
Ravnaq-bank to positive from stable.  S&P also affirmed out
'CCC+/C' long- and short-term counterparty credit ratings on the
bank.

The outlook revision to positive reflects S&P's view that Ravnaq-
bank has demonstrated clear signs of business recovery since the
regulator authorized a foreign currency license for the bank
almost a year ago.  Although the bank has not sustained these
results over a long period of time, S&P believes it will likely
be able to continue expanding its client base, while diversifying
its business profile and improving earnings capacity.  That said,
S&P sees high risks stemming from the fact that active business
expansion requires aggressive growth.  Fast loan growth on the
back of tight competition and developing risk-management
practices could result in higher-than-expected losses.
Therefore, S&P still sees prevailing downside pressure, which is
reflected in its ratings on the bank.

S&P believes that obtaining the foreign currency license enabled
Ravnaq-bank to strengthen ties with its customers and broaden and
diversify its deposit base.  During the first nine months of
2016, Ravnaq-bank increased its client base by one-third to
almost 22,000 clients.  This growth is approximately 2x greater
than in 2015, when the bank was operating without a foreign
currency license.  Additionally, Ravnaq-bank markedly improved
the stability of its funding base as the ratio of less
confidence-sensitive primary accounts to secondary accounts has
increased to 3.6x for the first nine months of 2016 from 1.2x at
the beginning of the year.  Importantly, the bank has built a
larger number of clients with primary accounts, which has
contributed to the diversification of revenue sources, with net
fee and commission income forming about 40% of operating revenues
compared to 20% in 2015.  The planned branch opening in Tashkent
will also likely be a positive factor for diversification of the
bank's client base and earnings in the future.

At the same time, S&P still believes that further development of
Ravnaq-bank depends on favorable operating conditions and a
competitive environment, owing to the bank's early development
stage after receiving its foreign currency license and its small
size.  That said, S&P observes downside pressure on the bank's
funding rates and note that the planned annual 110% loan growth
in 2016 and 55% in 2017 (even higher than targeted by other small
Uzbek banks) potentially adds credit risks, however the bank is
coming from a very low base.  Therefore, S&P will closely monitor
the quality and granularity of this growth in the next 12 months
as well as the bank's ability to generate stable profits, which
so far were relatively low to support business stability.

The positive outlook on Ravnaq-bank incorporates S&P's view that
over the next 12 months the bank will likely sustain positive
developments in funding and continue expanding its customer base
and strengthening its franchise.

S&P might consider a negative rating action if it observed signs
of regress in the bank's business profile, while asset quality
deteriorated more than S&P currently expects.  Deterioration in
its funding and liquidity metrics might also trigger a negative
rating action.

S&P might consider a positive rating action if Ravnaq-bank
continued strengthening its funding base and expanding business,
and proved able to deal with potentially high credit risks
stemming from rapid loan book growth.



                            *********

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

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

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


                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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