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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

          Friday, December 23, 2016, Vol. 17, No. 254


                            Headlines


C R O A T I A

HRVATSKA BANKA: S&P Affirms 'BB/B' ICRs, Outlook Stable


D E N M A R K

SCANDFERRIES APS: S&P Affirms B+ Long-Term CCR, Outlook Stable


F R A N C E

PAPREC HOLDING: S&P Affirms 'B+' Rating on Coved Acquisition


G E R M A N Y

AENOVA HOLDING: S&P Lowers CCR to 'B-' on Weak Profitability


G R E E C E

SEANERGY MARITIME: Jelco Delta Holds 73.1% Stake at Dec. 13
SEANERGY MARITIME: Takes Delivery of M/V Knightship
SEANERGY MARITIME: Closes Public Offering of 10M Common Shares


I R E L A N D

AER LINGUS: Obtained Illegal State Aid, ECJ Rules
HARVEST CLO V: Fitch Hikes Ratings on 3 Note Classes to BBsf
WEATHERFORD INT'L: Former Archer Exec. Bausch is New CFO


I T A L Y

BRACCIALINI SPA: Dec. 27 Bid Submission Deadline Set for Assets
MONTE DEI PASCHI: Italian Government Approves Bailout
SCHUMANN SPA: Moody's Assigns B1 Corporate Family Rating


K A Z A K H S T A N

EASTCOMTRANS LLP: Moody's Lowers CFR to Caa1, Outlook Negative


K O S O V O

KOSOVO TELECOM: At Risk of Bankruptcy Following EUR26.1MM Fine


L U X E M B O U R G

PACIFIC DRILLING: Six Resolutions Passed at Extraordinary Meeting


P O R T U G A L

NOVO BANCO: DBRS Confirms CC Long-Term Debt & Deposits Rating


R U S S I A

AK BARS: Fitch Puts 'BB-' IDRs on Rating Watch Negative
INTERSTATE CLEARING: Placed on Provisional Administration
IRKUTSK OBLAST: S&P Assigns 'BB' Rating to Proposed RUB5BB Bonds
ROSAGROLEASING JSC: Fitch Affirms 'BB' LT Issuer Default Rating
RUSHYDRO PJSC: S&P Revises Outlook to Pos. & Affirms 'BB/B' CCRs

SOVCOMBANK: Moody's Assigns B1 Long Term LC/FC Deposit Ratings
STOLICHNAYA RASCHETNAYA: Placed on Provisional Administration


S L O V E N I A

HOLDING SLOVENSKE: Moody's Assigns Ba2 LT Corporate Family Rating


S P A I N

GRIFOLS SA: S&P Affirms 'BB' CCR on Announced Hologic Acquisition
PAESA ENTERTAINMENT: S&P Revises Outlook to Pos. & Affirms B- ICR


U N I T E D   K I N G D O M

BELMOND INTERFIN: Moody's Hikes Corporate Family Rating to B2
COMMERCIAL MORTGAGE: Fitch Assigns 'BB' Rating to Class C Notes
DTEK FINANCE: Seeks U.S. Recognition of U.K. Proceeding
DTEK FINANCE: Chapter 15 Case Summary
ENTERPRISE INNS: S&P Raises Rating on GBP97MM Bonds to 'B+'

KARHOO INC: Chapter 15 Case Summary
KARHOO INC: Administrators File Chapter 15 Petition in U.S.
PERMANENT TSB: DBRS Assigns 'B' Long Term Issuer Rating
VIRIDIAN GROUP: Fitch Affirms 'B+' LT Issuer Default Rating
* DBRS Confirms Ratings on 34 Classes From 11 UK RMBS Transactions


U Z B E K I S T A N

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


X X X X X X X X

* BOOK REVIEW: AS WE FORGIVE OUR DEBTORS: Bankruptcy and Consumer


                            *********



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C R O A T I A
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HRVATSKA BANKA: S&P Affirms 'BB/B' ICRs, Outlook Stable
-------------------------------------------------------
S&P Global Ratings revised its outlook on Croatian state-owned
development bank, Hrvatska banka za obnovu i razvitak (HBOR) to
stable from negative.  At the same time, S&P affirmed its 'BB/B'
long- and short-term issuer credit ratings on the bank.

The outlook revision follows similar action on the Republic of
Croatia on Dec.16, 2016.  S&P equalizes its ratings on HBOR with
S&P's ratings on Croatia.  In S&P's view, the sovereign is almost
certain to provide timely and sufficient extraordinary support to
HBOR in the event of financial distress.  S&P do not consider the
almost certain likelihood of support to be subject to transition
risk.  S&P bases its assessment of the likelihood of support on
its view of the bank's:

   -- Critical public policy role in implementing the
      government's economic, social, and political policy --
      namely, the sustainable development of the Croatian economy
      and the promotion of exports.  The bank's role has widened
      since its formation and has evolved alongside the
      government's strategic goals for the country's social and
      economic development.  Since 2015, HBOR has officially been
      in charge of coordinating the implementation of the
      investment plan for Europe in cooperation with the European
      Investment Bank and the European Investment Fund; and

   -- Integral link with Croatia, demonstrated by the state's
      100% ownership, regular oversight, and injections of
      capital.  HBOR benefits from a public policy mandate and
      strong government support.  Croatia guarantees all of
      HBOR's obligations unconditionally, irrevocably, and on
      first demand, without issuing a separate guarantee
      instrument as stipulated by the HBOR Act.  The government
      is closely involved in defining HBOR's strategy; the
      supervisory board includes the ministers of finance and
      economy who serve as president and vice president of the
      board, as well as the ministers of regional development and
      EU funds, agriculture, tourism, and entrepreneurship and
      crafts.  Lastly, the government is continuing its capital
      injections, with the stated goal of HBOR reaching total
      capital of Croatian kuna (HRK) 7 billion (roughly EUR930
      million) over the next several years.

Established in June 1992, HBOR was tasked with financing the
reconstruction and development of the Croatian economy.  HBOR
lends to both the public and private sectors, either directly or
through commercial banks.  These banks lend HBOR's funds on to the
ultimate borrowers, who benefit from HBOR's lower funding cost
while still providing subsidized loans to Croatian corporations.

HBOR's creditworthiness is linked to that of the sovereign.  S&P
do not assess a stand-alone credit profile for HBOR because S&P
views the likelihood of extraordinary government support for the
bank as almost certain.  However, S&P estimates that the bank's
underlying credit quality, absent extraordinary support, is in the
'bb' category.  This combines S&P's view of the bank's strong
capitalization and the sustainability of its business model as a
government-owned development bank and export credit agency and, as
such, S&P do not consider government support to be subject to
transition risk.

Positively, HBOR has a relatively stable track record of revenue
generation and profitability, which supports internal capital
generation.  HBOR's capital adequacy ratio stood at over 73% in
December 2015, well above the minimum capital requirement for
Croatian banks.  This is set against a tougher operating
environment -- in which the bank is exposed to the economic cycle
and is susceptible to higher-than-average credit losses -- due to
a fast-growing and changing loan book portfolio.  The bank also
exhibits significant, although reduced, single-name
concentrations.  As a result of commercial banks' reduced
willingness to lend to the private sector, HBOR's share of direct
new lending increased to 57% in 2015 from 37% the year before.  In
turn, HBOR's exposure to the Croatian banking system through loans
that are onlent, primarily to small and midsize enterprises
(SMEs), has reduced.  S&P understands that this trend will reverse
as the economy continues to recover and commercial banks' appetite
for lending increases.  The bank continues to rely on concentrated
wholesale funding, especially from multilateral institutions.  At
the same time, it benefits from a sizable liquid asset portfolio
and an unconditional, irrevocable, and at-first-demand guarantee
from the Republic of Croatia, which is embedded in law.

Of HBOR's total loans in 2015, 39% were disbursed via other banks,
compared with 63% in 2014 and over 88% in 2009.  In addition,
another 4% were disbursed through leasing companies, which is a
new development.  Despite this trend, the bank still intends to
increase its direct exposure to clients through risk-sharing
models with banks, and meet increasing demand for direct loans
from clients.  Furthermore, HBOR's loan exposures have been
changing over the past five years from short-term working capital
loans toward longer-term, new investment projects.  In 2015, 82%
of approved funds were for capital investments and 18% for working
capital needs.  HBOR has placed particular emphasis on new loans
that target companies emerging from pre-bankruptcy settlement
proceedings, as well as start-up businesses, to support growth in
the economy.  S&P therefore expects that HBOR's higher risk
appetite may result in some deterioration in asset quality over
the next 12 to 18 months.

Furthermore, HBOR's role in facilitating EU funds absorption has
been crucial, especially for SMEs.  In fact, HBOR has
significantly intensified its role in funding SMEs.  In 2015, 94%
of the loans HBOR approved were to SMEs, increasing the bank's
lending to this sector to 41% of its loan book.  In light of the
government's economic agenda, S&P believes that HBOR will continue
to play a vital role, as demonstrated by the state's continued
capital injections and growth in new lending.  In 2015, the
Croatian government injected HRK32.9 million in HBOR, increasing
the total amount of capital contributed by the stateto
HRK6.5 billion, or 67% of total equity at year-end 2015.  The
Croatian government is planning a further HRK500 million capital
injection over the next few years at roughly the same pace as last
year. 2015 was also marked by a hike in direct lending, as the
share of directly approved new loans increased to 57% from an
average of 34% over 2010-2014.

The stable outlook on HBOR reflects that on Croatia.  S&P believes
that HBOR's integral link with and critical role for the Croatian
government's economic development plans and policies will remain
unchanged.  Any downward revision in S&P's assessment of the
bank's relationship with the government could lead S&P to consider
lowering the ratings on HBOR.  In addition, any upgrade or
downgrade of Croatia will result in a similar action on HBOR.



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D E N M A R K
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SCANDFERRIES APS: S&P Affirms B+ Long-Term CCR, Outlook Stable
--------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' long-term corporate credit
rating on Denmark-based ferry services provider Scandferries Aps
(also known as Scandlines).  S&P also assigned a 'B+' long-term
corporate credit rating to Scandferries' core subsidiary,
Scandlines Aps.  The outlook on both long-term ratings is stable.

At the same time, S&P affirmed the 'BB-' issue rating on the
company's senior secured debt.  The recovery rating on the senior
secured debt remains '2' (lower half of the range), indicating
S&P's expectation of substantial (70%-90%) recovery in the event
of a payment default.

The rating actions primarily reflect S&P's expectation that
Scandlines will maintain its persistent solid operating
performance, underpinned by organic revenue growth; and higher
profitability owing to a good grip on cost control.  They also
take into account the delivery this year of two new ferries that
strengthen the group's competitive position.  Nevertheless, S&P
believes that Scandlines' leverage ratios are likely to be
consistent with a highly leveraged financial risk profile over
time, based on the influence of the group's financial sponsor (FS)
ownership and S&P's assessment of FS' financial policy and track
record.  Scandlines is majority owned by a U.K.-based private
equity company 3i Group PLC and funds managed by 3i.

S&P's assessment of Scandlines' fair business risk profile
continues to be constrained mainly by S&P's view of the group's
narrow business scope and diversity compared with global
transportation companies.  S&P notes that Scandlines' business
model is built around two ferry routes deploying seven well-
maintained, but in some cases aging, vessels, as well as two
border/duty free shops.  Furthermore, the company depends highly
on one route (Rodby-Puttgarden) and the related retail business
(border/duty free shop Puttgarden), which together account for
about 80% of Scandlines' EBITDA.  In addition, Scandlines is
exposed to cargo traffic, which S&P considers to be typically
cyclical and which accounts for about 20% of its revenues.  S&P
also sees a long-term risk of the possible opening of the Fehmarn
Belt Fixed Link, a tunnel that would connect Germany and Denmark,
which would likely reduce traffic volumes and, therefore, earnings
on Scandlines' main route (Rodby-Puttgarden).  S&P nevertheless
understands this would be likely from 2028 at the earliest.

These weaknesses are mitigated, in S&P's view, by Scandlines'
leading and fairly protected position as a ferry operator for
pedestrian passengers, cars, cargo, and border shoppers in the
corridor between Denmark, Sweden, and Germany, underpinned by a
well-recognized brand name.  S&P also believes that Scandlines'
efficient business model and ownership of key port infrastructure
provide operational benefits and high barriers to entry for
competitors, thereby ensuring recurring income streams.
Furthermore, Scandlines has a demonstrated ability to manage costs
during difficult market conditions, as shown by a track record of
achieving above-average and more stable returns on capital,
compared with the industry peer group.  Moreover, the company
operates in the Northern European catchment area, with German and
Scandinavian economies holding up better than the overall economy
of the eurozone (European Economic and Monetary Union).  This
results in relatively good resilience to economic swings, in S&P's
view.  S&P also considers the fundamentals of the ferry industry
as more favorable than traditional cyclical transportation because
of generally more stable demand and pricing, and lower capital
intensity.

S&P's assessment of Scandlines' financial risk profile
incorporates S&P's view of the influence of the company's FS
ownership, which S&P classifies as "FS-6".  S&P believes that the
company's leverage ratios are likely to be consistent with a
highly leveraged financial risk profile over time, based on S&P's
assessment of 3i's financial policy and track record, with a
leverage ratio (S&P Global Services-adjusted debt to EBITDA) of
more than 5.0x.

S&P's assessment of a highly leveraged financial risk profile and
a fair business risk profile indicate an anchor of 'b' for
Scandlines.  S&P applies an upward adjustment of one notch for its
comparable ratings analysis to reflect Scandlines' core credit
measures, which are at the higher end of the financial risk
profile range.  This leads to S&P's long-term corporate credit
rating of 'B+' on the company.

S&P has equalized its rating on Scandlines Aps, the lender under
the senior secured debt, with that on Scandferries Aps because S&P
views Scandlines Aps as a core subsidiary of Scandferries Aps.
This is because it owns all the operating subsidiaries, is fully
integrated into the group, and shares the group's brand.

The stable outlook on Denmark-based ferry services provider
Scandferries Aps (Scandlines) reflects S&P Global Ratings' view
that the company will sustain its resilient operating performance,
underpinned by its efficient business model and demonstrated cost-
control capabilities.  These factors, combined with its adequate
liquidity, should enable the company to maintain its credit
quality at the 'B+' level.  For Scandlines, S&P considers ratios
of adjusted debt to EBITDA of less than 6.0x and adjusted FFO cash
interest coverage of more than 2x to be consistent with a 'B+'
rating.

A downgrade of Scandlines would likely stem from a large,
unexpected shareholder return or debt-funded acquisition, or it
could follow an unforeseen significant setback in operating
performance, which could markedly weaken liquidity or credit
measures, for example, with the ratio of adjusted debt to EBITDA
weakening to above 6.0x for a prolonged period.

S&P could consider an upgrade if Scandlines demonstrated a prudent
financial policy and continued to deleverage on a sustainable
basis, and if S&P believed that its adjusted debt to EBITDA would
fall and remain sustainably below 5.0x.



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F R A N C E
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PAPREC HOLDING: S&P Affirms 'B+' Rating on Coved Acquisition
------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' corporate credit rating on
France-based waste recycling company Paprec Holding.  The outlook
remains stable.

S&P also affirmed its 'BB' issue rating on Paprec's EUR100 million
super senior revolving credit facility (RCF).  The '1' recovery
rating indicates S&P's expectation of recovery in the 90%-100%
range.  S&P also affirmed its 'B+' issue rating on the company's
EUR295 million senior secured notes.  The '3' recovery rating
indicates S&P's expectation of recovery in the lower half of the
50%-70% range.  In addition, S&P affirmed its 'B-' issue rating on
the company's EUR185 million senior subordinated notes.  The '6'
recovery rating on these notes indicates S&P's expectation of
recovery prospects in the 0%-10% range.

The affirmation follows Paprec's announcement on Dec. 8, 2016,
that pending receipt of regulatory approvals, it will acquire
France-based waste management services company Coved.  Both the
acquisition price and funding details remain undisclosed at this
stage.

S&P believes that the acquisition will further improve the group's
market share -- post-acquisition, Paprec expects to handle close
to 10 million tons of waste per year -- and increase revenues and
EBITDA.  Furthermore, S&P assumes that Coved's network of waste
sorting centers, waste collection depots, and landfills will
enhance Paprec's national coverage.  The addition of landfills to
Paprec's network is likely to improve the group's potential for
generating synergies from this transaction, which S&P understands
could be significant, according to the group's management.

For now, S&P does not expect a significant change in EBITDA
margins for the combined group, given both companies generate
similar levels, with Paprec showing S&P Global Ratings-adjusted
EBITDA margins of about 11.5%-12.0% over the past three years.
S&P also notes Paprec's recent, somewhat weaker, operating
performance, with a slight decline of the adjusted margin to about
10.8% as of Sept. 30, 2016, versus 11.4% over the same period last
year.  In addition, S&P thinks that the Coved acquisition could
incur substantial integration risks.

In S&P's view, the acquisition would strengthen the group's
customer diversity because it understands that Coved is focused
more on public customers, while Paprec mainly addresses private
markets.  This will likely add stability to the operating
performance, in S&P's opinion, as it provides visibility since
public customers usually hold longer-term contracts compared with
private customers.

Nevertheless, our overall assessment remains constrained by the
group's highly leveraged financial risk profile, with estimated
adjusted debt to EBITDA at about 6x at end-2016.  However, S&P do
not expect a material increase in adjusted debt metrics as a
result of the Coved acquisition.

The stable outlook reflects S&P's view that Paprec's EBITDA will
gradually improve on a combination of organic growth -- thanks to
new contracts signed and favorable mix of services provided -- and
following the acquisition of Coved.  S&P considers adjusted
leverage of 5x-6x and cash interest coverage sustainably in excess
of 2.5x to be commensurate with the current rating.

S&P could consider a negative rating action if new contracts and
the closed acquisition do not translate into profitable growth.
Additionally, should adjusted leverage deteriorate to more than
6.0x or cash interest coverage not be sustained above 2.5x, S&P
could lower the rating.  If FOCF continued to deteriorate as a
result of weaker operating performance, higher working capital
needs, or more capex than initially anticipated, S&P could also
take a negative rating action.  This could arise, for instance, if
raw material prices -- especially scrap and non-ferrous metal
prices -- were worse than anticipated, leading to a sharp
correction in margins given the lack of indexation on such
contracts.  It could also arise from additional costs incurred by
the acquisition of Coved.

As S&P does not anticipate substantial deleveraging of the group's
balance sheet over the next 12 months, the potential for a
positive rating action is remote.  That said, it could materialize
if EBITDA generation was greater than anticipated, leading to
total debt to EBITDA sustainably below 4x and FFO to debt
comfortably above 12%.



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G E R M A N Y
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AENOVA HOLDING: S&P Lowers CCR to 'B-' on Weak Profitability
------------------------------------------------------------
S&P Global Ratings said that it lowered its long-term corporate
credit rating on Germany-based contract development and
manufacturer Aenova Holding GmbH to 'B-' from 'B'.  The outlook is
stable.

At the same time, S&P lowered its issue rating on the company's
EUR500 million first-lien senior secured debt and EUR75 million
revolving credit and acquisition facilities to 'B-' from 'B', and
the issue rating on the company's EUR139 million second-lien
facility to 'CCC' from 'CCC+'.

S&P's recovery rating on the second-lien loan is unchanged at '6'.
S&P revised its recovery rating on the first-lien loan to '3' from
'4.  S&P's expectations are in the lower half of the 50%-70% range
for the first-lien loan and in the 0%-10% range for the second-
lien facility.

The downgrade reflects S&P's view that Aenova's profitability and
cash generation remain weak, as the company still faces materially
higher costs related to the company's historical acquisitive
focus.  Most of these relate to staff expenses, operating costs
stemming from the restructuring of various sites (Miami, Lyon, and
Munich), and costs incurred during integration projects undertaken
after the acquisitions of Haupt Pharma Group and Temmler Group.

On the back of the ongoing high operational expenses S&P expects
S&P Global Ratings-adjusted EBITDA margins of about 13% and S&P
estimates it will take two to three years until the planned cost
cutting measures are fully implemented.  S&P still, however,
considers that the company's business risk profile is fair as
Aenova is well-diversified and has a significant international
presence outside Germany.

S&P understands management is focusing on a lean manufacturing
program to restore profitability measures.  Optimizations might
include carving out two to three sites; a reduction in overheads;
IT system synchronizations; centralizing procurement and noncore
asset sales; and efficiency increases from raising site
utilization rates.

"We assess Aenova's capital structure as highly leveraged,
reflecting a debt-to-EBITDA ratio of about 11x at the end of 2016.
Our adjusted debt calculation for 2016 includes financial debt of
EUR682 million under the capital structure, mainly consisting of a
first-lien term loan of EUR497 million and a second-lien term loan
of EUR137 million.  We also include operating-lease-adjusted debt
of about EUR25 million, EUR50 million usage of the factoring
facility, EUR30 million drawn under the RCF, pension and other
postretirement debt of about EUR35 million, and a EUR250 million
shareholder loan and accrued interest," S&P noted.

For 2017, S&P expects the company to generate zero free operating
cash flow (FOCF).  In 2018, S&P forecasts FOCF of about
EUR8 million as S&P assumes the cost-cutting measures will start
to show results.

S&P's base case assumes:

   -- The global pharmaceutical industry will expand by 3%-5% for
      the next two years;

   -- A relatively minimal impact from global macroeconomic
      cycles;

   -- 2.5% revenue growth in 2017, mainly driven by the solid
      capsule business as key customers are driving volume
      growth. Slightly lower growth in 2018 due to the absence of
      capacity expansion; and

   -- Adjusted EBITDA margin to slightly increase to 13.2% in
      2017 and to 14.5% in 2018, reflecting cost-cutting measures
      and synergies realized.

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

   -- Adjusted debt to EBITDA of 10.9x at the end of 2017 and
      10.0x one year later;

   -- FFO cash interest coverage of 2.0x in 2017 and 2.2x one
      year later; and

   -- FOCF generation of zero in 2017 and about EUR8 million in
      2018.

The stable outlook reflects S&P's view that the group's core
business will likely see profitability start to grow after
management adjusts the cost structure and operational practices to
suit the new business strategy, which focuses on cost cutting
without further acquisitions.  All this is likely to result in
FOCF of close to zero over the next 12 months and an adequate
liquidity profile.

S&P could lower the rating if Aenova's liquidity cushion
deteriorates.  This could happen if the company cannot reduce
staff expenses and restructuring costs, and is not able to
successfully integrate the earlier acquired businesses.  A
weakening of cash balances as a result of working capital
mismanagement could also trigger a downgrade.  S&P is also likely
to take a negative rating action if the group seems forced to take
cash-saving measures, such as lowering capex.

S&P could take a positive rating action if Aenova demonstrates a
track record of profitable growth.  Such an action would depend on
strong prospects for increasing EBITDA and materially positive
FOCF.  In addition, S&P would expect to see evidence that Aenova
had strengthened its competitive standing in the market through a
sustainable contract structure and through its ability to control
its expenses.



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SEANERGY MARITIME: Jelco Delta Holds 73.1% Stake at Dec. 13
-----------------------------------------------------------
In an amended Schedule 13D filed with the Securities and Exchange
Commission, these reporting persons disclosed beneficial ownership
of shares of common stock of Seanergy Maritime Holdings Corp. as
of Dec. 13, 2016:

                                        Shares      Percentage
                                     Beneficially       of
Name                                    Owned        Shares
----                                ------------   ----------
Jelco Delta Holding Corp.             43,649,230       73.1%
Comet Shipholding Inc.                   853,434        2.7%
Claudia Restis                        44,502,664       74.5%

A full-text copy of the regulatory filing is available at:

                      https://is.gd/cO4bCg

                         About Seanergy

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

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

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

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


SEANERGY MARITIME: Takes Delivery of M/V Knightship
---------------------------------------------------
Seanergy Maritime Holdings Corp. said it has taken delivery of a
178,978 dwt Capesize dry bulk vessel, renamed to M/V Knightship
and built in 2010 by Hyundai Heavy Industries in South Korea.

Stamatis Tsantanis, CEO of Seanergy commented, "We are very
pleased to announce the delivery of the second of the two Capesize
vessels that we agreed to acquire in September 2016.  With the
delivery of M/V Knightship, we successfully completed our
acquisition plan for 2016.  We expect to continue the
implementation of our business plan and grow our fleet even
further.  We are actively monitoring the market for acquisition
opportunities of quality tonnage."

                      About Seanergy

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

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

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

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


SEANERGY MARITIME: Closes Public Offering of 10M Common Shares
--------------------------------------------------------------
Seanergy Maritime Holdings Corp. completed its public offering of
10,000,000 of its common shares and class A warrants to purchase
10,000,000 common shares.  In connection with the Offering, the
Company issued the representative of the underwriters a warrant to
purchase 500,000 of its common shares, as disclosed in a Form 8-K
report filed with the Securities and Exchange Commission.

                        About Seanergy

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

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

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

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



=============
I R E L A N D
=============


AER LINGUS: Obtained Illegal State Aid, ECJ Rules
-------------------------------------------------
Vincent Boland at The Financial Times reports that Aer Lingus and
Ryanair face a combined bill of at least EUR16 million after the
European Court of Justice on Dec. 21 ruled that they had benefited
from illegal state aid.

The ECJ said the two airlines had obtained state aid after the
Irish government introduced a controversial air travel tax in
2009, at the height of the financial crisis, the FT relates.

According to the FT, the government said airlines would pay EUR2
per passenger on short-haul flights operated from Dublin, but
EUR10 on long-haul flights.

The ECJ concluded that the EUR8 differential constituted illegal
state aid, and must be paid by the airlines to the government, the
FT discloses.

Ryanair, as cited by the FT, said it now faced a bill of EUR12
million as a result of the ECJ judgment, while Aer Lingus
estimated it would have to pay EUR4 million.

The two airlines said they would pursue the Irish government for
damages incurred in having to pay what they said was an "illegal"
tax, the FT relays.

Aer Lingus, owned by International Airlines Group, said it was
studying the ECJ judgment and that it was seeking "substantial
damages" from the Irish government "for losses flowing from the
infringement of EU rules on free movement of services arising from
the air travel tax", according to the FT.


HARVEST CLO V: Fitch Hikes Ratings on 3 Note Classes to BBsf
------------------------------------------------------------
Fitch Ratings has upgraded Harvest CLO V plc's notes as follows:

Class A-R: affirmed at 'AAAsf'; Outlook Stable
Class A-D: affirmed at 'AAAsf'; Outlook Stable
Class A-2: upgraded to 'AAAsf' from 'AA+sf'; Outlook Stable
Class B: upgraded to 'AAAsf' from 'A+sf'; Outlook Stable
Class C-1: upgraded to 'Asf' from 'BBBsf'; Outlook Stable
Class C-2: upgraded to 'Asf' from 'BBBsf'; Outlook Stable
Class D: upgraded to 'BBBsf' from 'BBsf'; Outlook Stable
Class E-1: upgraded to 'BBsf' from 'Bsf'; Outlook Stable
Class E-2: upgraded to 'BBsf' from 'Bsf'; Outlook Stable
Class Q: upgraded to 'BBsf' from 'BB-sf'; Outlook Stable

Harvest CLO V is a cash flow collateralised loan obligation. At
closing a total note issuance of EUR650m was used to invest in a
target portfolio of EUR632m. The portfolio is actively managed by
3i Debt Management Investments Limited.

KEY RATING DRIVERS
The upgrades reflect an increase in credit enhancement (CE) across
the capital structure due to the transaction's deleveraging. The
senior notes have paid down by approximatively EUR108.8m over the
past 12 months.

Following the end of the reinvestment period in May 2014, the
manager is allowed to reinvest unscheduled principal proceeds and
proceeds from the sale of credit-improved and credit- impaired
assets, subject to certain conditions. The manager is currently
unable to reinvest any principal proceeds because of a breach of
some of the portfolio profile tests. As such, all principal
proceeds received from assets paydown and sales were used to repay
the senior notes.

Despite the portfolio amortisation, it remains reasonably
diversified with 100 assets from 78 obligors. As of the November
2016 investor report, the largest and top 10 obligors represented
respectively 3.16% and 25.91% of the performing portfolio,
excluding principal proceeds.

The credit quality of performing assets has remained stable in
2016. The reported weighted average rating factor has increased
slightly to 27.9 from 27.4 and the reported weighted average
recovery rate has increased slightly to 68.2 from 67.8. As of the
November 2016 investor report all the coverage tests and
collateral quality tests are passing.

The transaction uses the multi-currency class A-R variable funding
notes to hedge GBP and USD exposures. The main hedging strategy
following the end of the reinvestment period involves matching
senior note redemptions by currency so that GBP and USD principal
proceeds are used to redeem GBP and USD-denominated class A-R
drawings while euro principal proceeds are used to redeem euro-
denominated senior liabilities, thus keeping the balance of GBP
and USD-denominated assets and liabilities aligned.

However, FX risk is not fully mitigated and a skew of defaults or
prepayment activity to assets denominated in a single currency can
create a currency mismatch, introducing additional performance
volatility to the transaction. Once all senior euro liabilities
are redeemed, any additional euro principal proceeds are converted
to GBP and USD and used to redeem the GBP and USD-denominated
class A-R drawings. In addition, any GBP and USD assets
outstanding after the full repayment of the class A-R would need
to be converted in EUR to repay the mezzanine and junior notes.

The class Q combination note comprises the class C1 and E1 notes.
Therefore the lowest rated class E1 notes drives the rating of the
combination note.

RATING SENSITIVITIES
A 25% increase in the obligor default probability or a 25%
reduction in expected recovery may lead to a downgrade of one
notch for the rated notes.


WEATHERFORD INT'L: Former Archer Exec. Bausch is New CFO
--------------------------------------------------------
Weatherford International plc announced the appointment of Mr.
Christoph Bausch as executive vice president and chief financial
officer, effective Dec. 13, 2016.  Bringing many years of
financial and operational management experience, Mr. Bausch joined
the Company in May of 2016 as vice president and controller -
product lines.  Previous to his tenure at Weatherford, and since
May of 2011, he served as executive vice president and chief
financial officer of Archer Limited, an oilfield services company
publicly traded in Norway on the Oslo Stock Exchange.  Before his
role at Archer Limited, Mr. Bausch served as a global finance
director of Transocean, after having a 20-year international
career with Schlumberger, where he held senior financial positions
in global and regional capacities in the U.S., the U.A.E., France,
Mexico, Venezuela and Germany across a number of business segments
covering operations, engineering, manufacturing and supply chain.
Mr. Bausch holds an M.B.A. degree from the University of Mannheim,
Germany.

Also effective Dec. 13, 2016, Mr. Frederico Justus has been
promoted to the position of President - Region Operations.  Mr.
Justus joined Weatherford in 2010 and, since May 2015, was vice
president of the Middle East and Africa region.  He has over 19
years of oilfield experience across the entire services industry,
which includes managing multiple environments and product lines
spanning several countries.  Mr. Justus is a mechanical and
industrial engineer with a degree from the Federal Technical
University of Parana, Brazil.  His appointment comes as
Weatherford's current president - Regional Operations, Mr. Antony
J. Branch, leaves the Company.  Weatherford is grateful for Mr.
Branch's leadership and contributions over the years.

Both Mr. Bausch and Mr. Justus will report directly to the Chief
Executive Officer.

Commenting on the management appointments, Chief Executive
Officer, Mr. Krishna Shivram stated "Christoph's previous
experience as a public company CFO, his financial expertise, depth
of knowledge in the oil and gas industry as well as leadership
capabilities will further help strengthen our focus on financial
discipline, cash flow generation and improved cost efficiencies.
In addition, we are confident that Frederico, in his new role of
President - Region Operations, with his successful track record
and many years of direct hands-on experience will have a positive
impact and help us reach our objectives and build a stronger
Company.  The future is full of opportunity for Weatherford, and I
very much look forward to working with both Christoph and
Frederico to take our company to the next level."

                   Chief Executive Officer

Effective Dec. 13, 2016, the Compensation Committee of the
Company's board of directors approved supplemental payment of
$400,000 per quarter, prorated, for Mr. Krishna Shivram, interim
chief executive officer, commencing Nov. 9, 2016, and for as long
as he is interim chief executive officer of the Company.  Mr.
Shivram is also eligible for an additional performance bonus of up
to $1.5 million, based on the successful achievement of certain
measurable (non-discretionary) objectives during his service as
interim chief executive officer.

                       About Weatherford

Ireland-based Weatherford International plc (NYSE: WFT) --
http://www.weatherford.com/-- is one of the largest multinational
oilfield service companies providing innovative solutions,
technology and services to the oil and gas industry.  The Company
operates in over 100 countries and has a network of approximately
1,000 locations, including manufacturing, service, research and
development, and training facilities and employs approximately
31,000 people.

As of Sept. 30, 2016, Weatherford had $12.63 billion in total
assets, $10.25 billion in total liabilities and $2.38 billion in
total shareholders' equity.

Weatherford reported a net loss attributable to the Company of
$1.98 billion for the year ended Dec. 31, 2015, following a net
loss of attributable to the Company of $584 million for the year
ended Dec. 31, 2014.

                         *     *     *

In November 2016, Fitch Ratings has downgraded the ratings for
Weatherford and its subsidiaries, including the companies' Long-
Term Issuer Default Ratings (IDRs) to 'CCC' from 'B+'.

In November 2016, S&P Global Ratings lowered its corporate credit
rating on Weatherford International to 'B+' from 'BB-'.  "The
downgrade reflects our revised free operating cash flow estimates
for Weatherford following weaker-than-anticipated cash inflows in
the third quarter," said S&P Global Ratings credit analyst Carin
Dehne-Kiley.



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


BRACCIALINI SPA: Dec. 27 Bid Submission Deadline Set for Assets
---------------------------------------------------------------
Braccialini S.p.A., in a procedure for an arrangement with
creditors (Court of Florence no. 24/2016), calls for the
submission of bids to seek subjects interested in purchasing the
following property:

LOT 1 - Business unit involved in the design, production and
  marketing of bags and accessories, consisting of capital goods,
  the "Braccialini" and "Tua" trademarks, goodwill, 4 stores,
  franchise agreements and other equipment agreements - Starting
  price: EUR6,000,000.00

LOT 2 - “Amazonlife" trademark - Starting price: EUR55,000.00

LOT 3 - "Francesco Biasia" trademark - Starting price:
  EUR1,175,736.00

LOT 4 - property forming part of the stock related to the
  "Braccialini" and "Tua" trademarks, consisting of finished
  products and easy-to-use raw material - Starting price for the
  entire lot: EUR4,652,000.00 (subject to adjustment due to
  changes occurring until the disposal date)

LOT 5 - property forming part of the stock related to the
  "Braccialini" and "Tua" trademarks, consisting of difficult-to-
  use raw material - Starting price for the entire lot:
  EUR 1,472,000.00 (subject to adjustment due to changes
  occurring until the disposal date)

LOT 6 - property lease on a building intended for
  craft/industrial use, located in Via di Casellina 61/c,
  Scandicci (FI), Gross Usable Surface 10,000.00 square meters -
  Starting price: EUR714,570.00.  The price may change as a
  result of the payment of instalments falling due at a future
  date, and will be finally determined upon transfer of the
  lease.

Bid deadline: Dec. 27, 2016, 4:00 PM.

The full text of the announcement is available on:
www.braccialinigroup.it

Further information available at the Office of the Court-appointed
Receiver, Silvia Cecconi, in Via Capo di Mondo 56/2, Florence,
tel. 055 665629. Fax 055 676645, email: studio@silviacecconi.it,
and/or at Braccialini S.p.A., headquartered in Via di Casellina
61/c, Scandicci, tel. 055.7577547, braccialini@pec.it


MONTE DEI PASCHI: Italian Government Approves Bailout
-----------------------------------------------------
James Politi at The Financial Times reports that the Italian
government has approved a bailout of Monte dei Paschi di Siena at
a late night cabinet meeting in Rome, led by prime minister Paolo
Gentiloni.

The state rescue of the country's third largest bank, saddled by
non-performing loans, became necessary after it failed to raise
enough capital in the wake of European-wide stress tests published
in July, the FT notes.

As reported by the Troubled Company Reporter-Europe on Dec. 22,
2016, BBC News related that the bank has been trying to raise EUR5
billion (GBP4.2 billion) in fresh capital to stage its own rescue,
but so far it has raised only EUR500 million (GBP420 million).

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.


SCHUMANN SPA: Moody's Assigns B1 Corporate Family Rating
--------------------------------------------------------
Moody's Investor Service has assigned a B1 corporate family rating
(CFR) and a B1-PD probability of default rating (PDR) to Schumann
S.p.A., parent and holding company of the Italian gaming company
Sisal Group S.p.A. Moody's has also assigned definitive B1 ratings
to the EUR325 million senior secured floating rate notes due 2022
and the EUR400 million senior secured fixed rate notes due 2023,
also issued by Schumann. The outlook on all ratings is stable.

Concurrently, Moody's has withdrawn the B2 CFR and the B2-PD PDR
on Gaming Invest S.ar.l. (both under review for upgrade), former
parent of Sisal Group S.p.A. (Sisal), concluding the review of the
ratings.

The action was prompted by the completion of the acquisition of
Sisal by private equity firm CVC Capital Partners (CVC) on 14
December 2016 via Schumann, a recently incorporated company which
is expected to merge with Sisal within 6-8 months post-closing.

RATINGS RATIONALE

On December 14, 2016, CVC completed the acquisition of 100% of
Sisal's share capital via Schumann, a recently incorporated entity
and new parent of Sisal. The acquisition was funded with
approximately EUR302 million of equity, EUR725 million of floating
and fixed rate notes due 2022-2023 and EUR30 million drawings
under the new EUR125 million super senior revolving credit
facility (RCF, unrated).

To reflect the new corporate and financing structure, Moody's has
moved Sisal's CFR to Schumann from Gaming Invest S.ar.l. and
upgraded the CFR to B1 from B2 principally following a material
debt reduction and better liquidity from lower future interest
costs and a new and ample super senior RCF.

With the CVC buy-out, Sisal's financial leverage, as adjusted by
Moody's, decreased to 4.2x compared to 5.5x for the last twelve
months (LTM) ending 30 September 2016. However, Moody's expects no
material deleveraging over the next 12 to 18 months given the
relatively mature and competitive market, which implies a more
challenging growth environment for Sisal. In addition, there is
pressure from the increased taxes and requirements following the
2016 Stability Law (budget law), which the company is partially
offsetting through other means, such as for example its re-launch
of the SuperEnalotto or growth in payments services and online
betting and gaming.

While Moody's expects that the company will be able to achieve
positive free cash flow (after interest) in 2016, cash flows
thereafter will be under greater pressure and will likely be
negative in at least one year during 2017-18, resulting from
concession-related payments and the gradual replacement and
reduction of amusement with prize machines (AWPs). However, the
exact timing and amount of those payments is currently uncertain.

Moody's also understands that the company may consider smaller
add-on acquisitions, but the rating does not factor in any major
debt-funded acquisition.

The B1 corporate family rating (CFR) assigned to Schumann, parent
of Sisal, continues to reflect (1) the lack of geographical
diversification exposing the company to Italian consumer spending
and to an evolving regulatory and fiscal regime, including
measures introduced with the 2016 budget law; (2) its presence in
mature and increasingly competitive segments of the Italian
gambling industry, with limited growth potential; (3) its exposure
to the risk of not having its concessions renewed upon maturity,
for example the SuperEnalotto concession, due in 2018 and
representing approximately 11% of LTM September 2016 revenues and
18% of EBITDA, as well as the risk that the terms of any new
concession may change; (4) the company's improved yet still
significant Moody's-adjusted LTM September 2016 debt/EBITDA of
about 4.2x and pro-forma for the transaction, as well as Moody's
expectation of pressure on cash flows in 2017-18 due to the capex
required to renew upcoming licenses (betting shops/corners and
lottery concession).

However, Schumann's CFR is positively supported by its (1) solid
market presence, benefitting from its capillary distribution
network and high brand recognition as an iconic Italian gaming
company; (2) moderately diversified business activities, ranging
across several categories of games, licenses and payment services;
and (3) long-term concession model, which protects against
earnings volatility.

Using Moody's Loss Given Default methodology, Schumann's PDR and
the rating of the EUR725 million notes are in line with and the
CFR. This is based on a 50% recovery rate, as is typical for a
debt capital structure that consists of senior secured facilities
and senior secured notes. The notes are secured by share pledges
and intercompany loans, and are guaranteed by 99.7%, 98.6% and
98.5% of Sisal Group S.p.A.'s consolidated total revenues and
income, EBITDA and total assets, respectively as at 31 December
2015. The EUR125 million super senior revolving credit facility
shares the securities and guarantees with the notes but ranks
ahead in case of an enforcement.

Liquidity Profile

Schumann's liquidity position is likely to be sufficient to meet
its seasonal needs and other requirements, although the timing and
amount required for the concession renewals remains uncertain at
this stage and may be larger than the company's expectations. At
completion, the company had circa EUR7 million of cash excluding
weekly working capital movements, and EUR95 million availability
under the new super senior RCF. The next debt maturity will be the
revolving credit facility in April 2022. There are no financial
maintenance covenants.

Rating Outlook

The stable rating outlook reflects Moody's expectation that (1)
Schumann's credit metrics will remain stable over the next 12 to
18 months; (2) the concessions for sports betting shops and
corners and the SuperEnalotto will be successfully renewed; (3)
the company will not embark in any material debt-funded
acquisition or dividend distribution.

What Could Change the Rating - Up

Upwards rating pressure could develop over time if Schumann's
operating performance substantially improves such that its
Moody's-adjusted leverage falls sustainably below 4.0x and
Moody's-adjusted EBIT margin rises towards 15%, whilst achieving
sustained positive free cash flow, and maintaining adequate
liquidity.

What Could Change the Rating - Down

Conversely, negative pressure would be exerted on the ratings if
Schumann's performance weakens or is negatively impacted by a
changing regulatory regime or the loss of a material concession.
Quantitatively, Moody's would consider downgrading Sisal's ratings
if its Moody's-adjusted leverage ratio rises above 5.0x, liquidity
weakens, or its Moody's-adjusted EBIT margin falls below 10%.

LIST OF AFFECTED RATINGS

Assignments:

Issuer: Schumann S.p.A.

- LT Corporate Family Rating, Assigned at B1

- Probability of Default Rating, Assigned at B1-PD

- Senior Secured Regular Bond/Debenture, Assigned B1 from (P)B1

Withdrawals:

Issuer: Gaming Invest S.ar.l.

- LT Corporate Family Rating, Withdrawn, previously rated B2 on
   review for upgrade

- Probability of Default Rating, Withdrawn, previously rated B2-
   PD on review for upgrade

Outlook Actions:

Issuer: Schumann S.p.A.

- Outlook, Remains Stable

Issuer: Gaming Invest S.ar.l.

- Outlook, Changed To Rating Withdrawn From Rating Under Review

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global Gaming
Industry published in June 2014.

Corporate Profile

Headquartered in Italy, Schumann S.p.A is the parent holding
company of Italian gaming company Sisal Group S.p.A. following the
completion of the CVC buy-out. Operating with legal concessions
from Italy's national gaming regulator and under licence from the
Bank of Italy, Sisal is one of the largest Italian gaming and
convenience payment service providers. As of December 2015, the
company has a network of more than 40,000 generic affiliated
points of sale along with more than 4,600 branded points of sale.
Through its network, Sisal operates amusement with prize machines
(AWPs), video lottery terminals (VLTs), sports betting and lottery
games, and also offers convenience payment services. The
distribution network consists of newsstands, bars, tobacconists,
betting shops and betting shops-in-shops (corners), points of sale
that are dedicated to gaming machines, multifunctional gaming
halls, and an online gaming platform that only Italy-based
customers can access.

For the 12-month period ending September 2016, Sisal reported
revenues of EUR799 million and EBITDA of EUR197 million. All of
the company's earnings were generated in Italy.



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


EASTCOMTRANS LLP: Moody's Lowers CFR to Caa1, Outlook Negative
--------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating to Caa1 from B3 and the probability of default rating to
Caa1-PD from B3-PD of Kazakhstani freight railcar leasing company
Eastcomtrans LLP (ECT). The outlook on the ratings is negative.

"We downgraded Eastcomtrans on the back of deterioration in the
company's liquidity assessment and heightened refinancing risks as
a result of the breach of financial covenants for the bulk of the
debt portfolio," says Julia Pribytkova, a Moody's Vice President -
Senior Analyst.

At the same time, the rating agency downgraded the senior secured
rating of ECT's outstanding Eurobond to Caa1 (LGD3) from B3 (LGD3)
and the company's national scale corporate family rating to B3.kz
from B1.kz.

RATINGS RATIONALE

The rating actions reflect significant pressure on ECT's liquidity
as a result of (1) a material mismatch between the company's
currency of debt (mainly US dollars) and its currency of
operations (KZT, or tenge), exacerbated by the devaluation of
tenge in 2015; (2) a weakened economic environment in Kazakhstan;
and (3) impairments to market value of the company's assets,
represented by railcars.

In addition, ECT faces elevated risk of default as the company
will be in breach of most of its covenants under its bank loan
agreement and its Eurobond. Moody's notes the covenants will be
tested against the full-year 2016 audited financial statements to
be released by ECT after March 31, 2016. The company advises that
it is negotiating the waivers with its lenders, however none have
been obtained to date. Moody's notes that ECT's $58.5 million
Eurobond maturing in April 2018 may be accelerated as a result of
a default exceeding $10 million under any of its facilities.

The routine refinancing of the bond also remains a risk. Following
the non-acceptance (on December 15, 2016) by the required majority
of holders of the Eurobond of a proposed change of terms,
including partial prepayment, extension of maturity to 2023 and an
uptick in the interest rate, ECT will seek to refinance the bond
with (1) a new issue, (2) new loans from its existing and new
lenders including international financial institutions and local
banks.

Moody's advises that the Caa1 rating is supported by (1) a
reasonable assuredness that the company's cash flow generation
underpinned by the recently renewed contracts with Tengizchevroil
LLP (TCO) has stabilised, albeit at materially lower levels than
those seen in 2014, and will remain sustainable over the course of
the next three years, which is the minimal duration of the new TCO
contracts; and (2) plausible asset coverage of net debt at 1.3x as
of end-September 2016, which provides for a reasonable recovery
rate of the secured debt, including the Eurobond, in the event of
a corporate default.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects Moody's view that ECT's liquidity
could further deteriorate should the company fail to renegotiate
its covenants and an event of default is triggered. In addition,
further impairments of assets could result in lower asset coverage
and recovery rate that could lead to a downward rating migration.
Moody's could consider stabilising the outlook on the ratings if
the company demonstrates that (1) the asset coverage remains
adequate based on the asset fair value assessment to be undertaken
based on 2016 year end results; and (2) the covenants breach has
been properly addressed and the risk of cross-acceleration of the
company's debt has been substantially mitigated.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Upward pressure is limited at this point, as highlighted in the
negative outlook on the ratings. Moody's could consider upgrading
ECT if the company (1) succeeded in resetting its financial
covenants to a comfortable and sustainable level; (2) addressed
the refinancing risk associated with the repayment of the Eurobond
in the second quarter of 2018; and (3) demonstrated a trend
towards reducing its foreign-exchange risk and leverage. In
addition to the above factors, Moody's would also assess the
sustainability of the company's contractual arrangements with its
largest customer, TCO, and the company's vulnerability to their
further alterations.

Conversely, the rating agency could downgrade the ratings further
should ECT's liquidity profile deteriorate, as a result of (1)
unresolved covenant breaches increasing the probability of debt
acceleration; and (2) a weakening in the cash flow generation
beyond currently expected levels.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Equipment and
Transportation Rental Industry published in December 2014.

Eastcomtrans LLP (ECT) is the largest private company specialising
in operating leasing of freight railcars in Kazakhstan. As of
year-end 2015, its fleet comprised more than 12,000 railcars, or
approximately 10% of the country's total. The company derived more
than 70% of its revenues from railcar operating lease agreements,
and approximately 30% from providing transportation and other
related services. 93.33% of Eastcomtrans's share capital is
directly and indirectly controlled by Mr. Marat Sarsenov and 6.67%
by International Finance Corporation (IFC; Aaa stable). In the
last 12 months ended September 2016, ECT's revenue amounted to
KZT25.9 billion (approximately $75.7 million) and EBITDA to
KZT20.0 billion (approximately $58.5 million).



===========
K O S O V O
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KOSOVO TELECOM: At Risk of Bankruptcy Following EUR26.1MM Fine
--------------------------------------------------------------
SeeNews reports that Kosovo Telecom said it may go bankrupt after
an arbitration court ruled the state-owned company must pay a
EUR26.1 million (US$27.25 million) fine, interest excluded, to its
smaller local peer Z-mobile.

According to SeeNews, the telecommunications operator said on Dec.
21 it would appeal against the ruling issued by the London Court
of International Arbitration and asked Kosovo's government for
help.  The company, as cited by SeeNews, said a possible
bankruptcy could affect the 2,030 employees of the company.

Z-mobile, owned by local Devolli Group, signed a contract for the
delivery of 200,000 SIM cards with Kosovo Telecom in 2009, SeeNews
recounts.

Z-mobile accused Kosovo Telecom of delaying the delivery of the
SIM cards, not issuing additional SIM cards as Z-mobile had asked,
and refusing to offer 3G and 4G mobile Internet services, SeeNews
relays.  Z-mobile sought arbitration in its duspute with Kosovo
Telecom last year, SeeNews discloses.



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


PACIFIC DRILLING: Six Resolutions Passed at Extraordinary Meeting
-----------------------------------------------------------------
Pacific Drilling S.A. held an extraordinary general meeting on
Dec. 6, 2016, at which these resolutions were adopted:

  1. Acknowledgement of the resignation of Mr. Elias Sakellis
     (the Vacancy) with effect on Oct. 27, 2016, and granting of
     discharge to him for the exercise of his mandate as director
     of the Company;

  2. Ratification of the co-optation of Antoine Bonnier, who was
     appointed by the Board on Oct. 31, 2016, as a member of the
     Board to fill the vacancy on a provisional basis until the
     next general meeting, pursuant to article 7.1(vi) of the
     articles of association (the Articles) of the Company and
     further appointment to serve as a member of the Board for a
     term ending at the annual general meeting of the Company to
     be held in 2017;

  3. Increase of the size of the Board from 9 to 11 members;
  4. Appointment of Matthew Samuels to serve as a new member of
     the Board for a term ending at the annual general meeting of
     the Company to be held in 2017;

  5. Appointment of Scott N. Fine to serve as a new member of the
     Board for a term ending at the annual general meeting of the
     Company to be held in 2017; and

  6. Authorization that any one director of the Company and/or
     any employee of Centralis (Luxembourg) and/or any lawyer of
     the law firm Wildgen, Partners in Law, with offices in
     Luxembourg be, and each of them acting alone and with full
     power of substitution, hereby is, authorized and empowered,
     for and on behalf of the Company, to take such action and
     execute any such documents as may be required or useful for
     the implementation of the resolutions to be taken on the
     basis of the present agenda and in particular to proceed to
     any required filing or publication in Luxembourg as well as
     in the United State of America or any other jurisdiction
     where necessary and ratify any action taken by any
     Authorized Person with respect to the EGM (including only
     for the Authorized Persons who are directors of the Company,
     the approval of the final documents and execution of the
     convening notices for the EGM).

                     About Pacific Drilling

Based in Luxembourg, Pacific Drilling S.A. (NYSE:PACD) is an
international offshore drilling contractor.  The Company's primary
business is to contract its high-specification rigs, related
equipment and work crews, primarily on a day rate basis, to drill
wells for its clients.  The Company's contract drillships operate
in the deepwater regions of the United States, Gulf of Mexico and
Nigeria.

As of Sept. 30, 2016, Pacific Drilling had $5.89 billion in total
assets, $3.19 billion in total liabilities and $2.70 billion in
total shareholders' equity.

Pacific Drilling reported net income of $126.2 million in 2015,
net income of $188.3 million in 2014 and net income of $25.50
million in 2013.

                         *     *     *

In October 2016, Moody's Investors Service downgraded Pacific
Drilling's Corporate Family Rating to 'Caa3' from 'Caa2' and
Probability of Default Rating (PDR) to 'Caa3-PD' from 'Caa2-PD'.
"PacDrilling's ratings downgrade reflects our extremely negative
view of the offshore drilling sector with no near term signs of
improvement.  Depressed prices for the offshore drillships offers
weak asset coverage for PacDrilling's overall debt.  With no
material signs of improving contract coverage or utilization for
PacDrilling's drillships, cashflow through 2017 will be severely
impacted resulting in an unsustainable capital structure," said
Sreedhar Kona, Moody's senior analyst.

In November 2016, S&P Global Ratings lowered its corporate credit
rating on Pacific Drilling S.A. to 'CCC-' from 'CCC+'.  "The
downgrade reflects our expectation of limited activity in deep-
water offshore drilling due to continued low oil prices, and the
negative impact on Pacific Drilling's expected cash flows to
support high debt levels and upcoming maturities," said S&P Global
Ratings credit analyst Michael Tsai.



===============
P O R T U G A L
===============


NOVO BANCO: DBRS Confirms CC Long-Term Debt & Deposits Rating
-------------------------------------------------------------
DBRS Ratings Limited has confirmed Novo Banco, S.A.'s (NB or the
Bank) Senior Long-Term Debt and Deposits rating at CCC (high), and
changed the trend to Stable from Negative. At the same time, the
agency confirmed the Short-Term & Deposit rating of R-5 with a
Stable trend. DBRS has also confirmed the Critical Obligations
Ratings (COR) at BB (low) / R-4, with the trend on the LT COR
revised to Stable from Negative, and the Senior and Unsubordinated
Notes Guaranteed by the Republic of Portugal at BBB (low), Stable
trend.

The change in the trend to Stable from Negative reflects DBRS's
view that some of the risks faced by the Bank have materially
reduced. These include that Banco Espirito Santo (BES) has entered
the liquidation process and therefore DBRS considers a similar
transfer of senior bonds as highly unlikely to be repeated. In
addition investor confidence in the Bank has improved and DBRS
would expect this process to continue when the sale of the Bank is
completed. This is expected in January 2017. The change in the
trend also reflects the good progress of the Bank with regard to
the requirements of the restructuring plan.

The ratings also consider the challenge the Bank has to return to
sustainable profits amid the low interest rate environment, the
sluggish economic recovery in Portugal and ongoing regulatory
requirements. The Group continues to have a strong presence in
Portugal where it is the third largest bank by total assets with
meaningful domestic market shares of around 16% in retail loans
and deposits at end-June 2016 and where it retains leading
positions in the SME and corporate segments with market shares of
around 21%.

The Bank's funding and liquidity position remains challenged and
vulnerable to investor confidence although DBRS notes the
improvements over the last year. In particular, DBRS notes that
the bank has recently been able to regain access to certain
funding sources, such as securitization and improved access of
repo activities with counterparties, and that the level of funding
from the European Central Bank has also declined. Whilst corporate
deposits continue to reduce given the low ratings and the issues
the Bank has faced, the Bank is gaining retail deposits, which
were up EUR800 million in the nine month period to end-September
2016. In spite of a still overall reduction of total deposits of
9% in the first nine months of 2016, the Bank continued to improve
its loan-to-deposit ratio, mainly through the continued
deleveraging.

The Bank's asset quality remains weak but DBRS views positively
that the pace of asset quality deterioration has slowed. Non-
performing assets (NPAs) reduced slightly in the first nine months
of 2016, however total Non-performing exposures (NPEs) still
accounted for 36% of total gross loans at end-June 2016,
significantly above domestic and most European peers. While
coverage levels remain higher than most domestic peers, DBRS
considers them essential to cover for NB's larger than peers'
proportion of uncollateralized exposures.

Since its inception NB has reported annual losses which largely
reflect the challenges that the Bank continue to face under the
low interest rate environment and the challenging, albeit somewhat
improving, economic conditions in Portugal. NB continued to be
loss making in 9M16 reporting a EUR359 million net loss, a slight
improvement on the net loss of EUR419 million reported in 9M15.
Since the Bank launched its new strategic plan there have been
some signs of improvement in its profitability, primarily through
lower operating costs albeit the bank has also focused on growing
core revenues. Positively, results significantly improved quarter-
on-quarter (QoQ) as the Bank reported a EUR3.7 million profit in
3Q16, its first quarterly profit since its inception.
DBRS continues to view the Bank's capitalisation as weak in the
context of the large stock of NPEs and large single name
concentrations. NB reported an estimated phased-in CET1 ratio of
12.3% at end-September 2016, as well as an estimated fully loaded
CET1 of 10.7%, both significantly lower than end-2015 on the back
of the continued losses. In the context of the restructuring plan,
DBRS expects the Bank to further improve its capital position
through the disposal of non-core assets and the consequent
reduction of risk-weighted assets (RWAs).

Separately, DBRS has also withdrawn the BBB (low) rating on debt
guaranteed by the Republic of Portugal (ISIN PTBENFOM0027), as
this debt has been cancelled.

RATING DRIVERS

Positive rating pressure could emerge if the Bank demonstrates
sustained improving financial performance, and continues de-
risking its balance sheet through improving asset quality and sale
of non-core assets, which could also be accelerated by the
successful sale of the Bank to a long-term investor. It would also
require further stabilization of its funding and liquidity
position.

Downward rating pressure could arise from a notable deterioration
in the franchise, particularly within NB's home market of
Portugal, or if market confidence in the Bank weakens, which could
negatively impact funding costs and liquidity. Further weakening
of the Bank's financial fundamentals could also pressure the
ratings.

Notes: All figures are in EUR unless otherwise noted.

Issuer/Debt Rated                   Rating Action  Rating
-----------------                   -------------  ------
Novo Banco, S.A.

Senior Long-Term Debt & Deposits Trend Change   CCC (high)
Short Term & Deposit            Confirmed   R-5
LongTerm Critical Obligations Rating Trend Change BB (low)
ShortTerm Critical Obligations Rating Confirmed   R-4

Novo Banco Cayman Islands Branch
Long-Term Instruments            Trend Change   CCC (high)
Short-Term Instruments            Confirmed      R-5

Novo Banco London Branch
Long-Term Instruments            Trend Change   CCC (high)
Short-Term Instruments            Confirmed      R-5

Novo Banco Luxembourg Branch
Long-Term Instruments            Trend Change   CCC (high)
Short-Term Instruments            Confirmed   R-5

Novo Banco Madeira Branch
Long-Term Instruments            Trend Change   CCC (high)
Short-Term Instruments            Confirmed      R-5

NB Finance Ltd.
Senior Notes Guaranteed by NB Trend Change   CCC (high)

Novo Banco, S.A.
Unsubordinated Notes Guaranteed
by the Republic of Portugal        Confirmed      BBB (low)

Senior Notes, Guaranteed by
the Republic of Portugal
  - PTBEQHOM0014                    Confirmed      BBB (low)

Senior Notes, Guaranteed by
the Republic of Portugal
- PTBENHOM0017                  Confirmed      BBB (low)

Senior Notes, Guaranteed by
the Republic of Portugal
- PTBENFOM0027                  Disc.-Repaid   Discontinued



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


AK BARS: Fitch Puts 'BB-' IDRs on Rating Watch Negative
-------------------------------------------------------
Fitch Ratings has placed AK BARS Bank's support-driven ratings on
Rating Watch Negative (RWN).

KEY RATING DRIVERS

IDRS, NATIONAL, SUPPORT AND DEBT RATINGS

The RWN reflects the possibility that Fitch will revise downwards
its assessment of the ability and/or propensity of the Republic of
Tatarstan (RT; BBB-/Stable) to provide support to AK BARS. This in
turn is driven by:

- the default of another large RT-based bank, Tatfondbank (TFB),
   in which the RT directly and indirectly owns a significant
   stake, although Fitch acknowledges that there is no direct
   parallel between TFB and AK BARS, given the latter's greater
   systemic importance and its longstanding strategic ownership by
   RT;

- potential greater regulatory scrutiny, following TFB's failure,
    of the RT's role as a bank shareholder and supervisor;

- a possible reduction in the ability of the RT to support AK
   BARS in the event that RT resources are used to (partially)
   resolve problems at TFB;

- potential negative implications for AK BARS' standalone credit
   profile (and hence of its possible future support needs) as a
   result of TFB's failure, due for example to possible funding
   outflows, a weakening of the financial position of some of AK
   BARS' borrowers (if they suffer losses as a result of TFB's
   default) or a direct role for AK BARS in the rescue of TFB
   (although RT officials and AK BARS management have stated that
   the two banks will not be merged);

- some uncertainty about the effectiveness of measures being
   undertaken to strengthen AK BARS' own solvency, including the
   quality of capital relief resulting from asset sales to other
   RT entities.

AK BARS's IDRs, Support, National and debt ratings reflect Fitch's
view of the moderate probability of support the bank may receive,
in case of need, from RT. This assessment takes into account (i)
RT's majority ownership; (ii) the close association between the
bank and the regional administration (RT's representatives sit on
AK BARS's board); and (iii) AK BARS's agent function for RT's
budget and systemic importance in the region (market share of
around 40%).

The three-notch difference between the ratings of RT and the bank
reflects the limited flexibility of RT's budget, which may impede
its ability to provide support in a necessary amount and in a
timely manner at all times given the bank's relatively large size.
This risk is offset somewhat by the ability to provide support
through RT-affiliated entities, as has been recently demonstrated.
The notching also reflects significant corporate governance
weaknesses at AK BARS, given its large and weakly-reserved
related-party and relationship-based lending exposure, and other
high-risk and non-core assets which could make support costly and
less politically acceptable.

Fitch assessed the volume of such assets at end-1Q16 at RUB141bn,
equivalent to a significant 4.9x Fitch Core Capital (FCC) (see
'Fitch Affirms AK BARS Bank's IDR at 'BB-', Downgrades VR to
'ccc'', dated 22 June 2016 at www.fitchratings.com). The agency
has been informed that during 2Q16-3Q16 high-risk assets were
reduced by about RUB35bn as a result of repayments, and the bank
is currently finalising a further RUB25bn loan sale. As a result,
the volume of high-risk exposures could fall to around RUB81bn,
equal to roughly 2.3x end-3Q16 FCC.

AK BARS's capitalisation remains weak, as reflected by a 7.4% Tier
1 regulatory capital ratio at end-November 2016, just above the
regulatory minimum (7.25% including buffers from 1 January 2017).
Some capital relief may be provided by the RUB25bn loan sale
(providing this involves a full risk transfer), and the bank
expects to improve the Tier 1 capital ratio to 10.5% by end-2Q17,
mainly as a result of a RUB10bn equity injection from RT.

Liquidity is comfortable at AK BARS. Liquid assets of cash, net
short-term interbank and securities eligible for refinance with
central bank of Russia, net of near-term wholesale repayments,
were suffitient to cover about 30% of customer accounts as of 13
December 2016.

RATING SENSITIVITIES

IDRS, NATIONAL, SUPPORT AND DEBT RATINGS
AK BARS' ratings could be downgraded if (i) the failure and
resolution of TFB result in regulatory actions which in Fitch's
view could weaken the ability or propensity of RT to provide
support to AK BARS; or (ii) if Fitch believes the quality and
volume of support made available by the RT to AK BARS is
insufficient relative to the risks to its solvency resulting from
high-risk asset exposures.

The rating actions are as follows:

AK BARS Bank:
Long-Term Foreign and Local Currency IDRs: 'BB-', placed on RWN
Short-Term Foreign Currency IDR: affirmed at 'B'
National Long-Term rating: 'A+(rus)', placed on RWN
Viability Rating: 'ccc'; unaffected
Support Rating: '3', placed on RWN
Senior unsecured debt: 'BB-,' placed on RWN
Senior unsecured debt National rating: 'A+(rus)', placed on RWN

AK BARS Luxembourg S.A:
Senior unsecured debt long-term rating: 'BB-', placed on RWN
Senior unsecured debt short-term rating: affirmed at 'B'
Subordinated debt: 'B', placed on RWN


INTERSTATE CLEARING: Placed on Provisional Administration
---------------------------------------------------------
The Bank of Russia, by its Order No. OD-4699, dated December 22,
2016, revoked the banking license of Moscow-based credit
institution Commercial Bank Interstate Clearing Bank (Limited
Liability Company) (CB ICB LLC) from December 22, 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 breaches of Articles 6 and 7 (except for
Clause 3 of Article 7) of Federal Law "On Countering the
Legalisation (Laundering) of Criminally Obtained Incomes and the
Financing of Terrorism", non-compliance with Bank of Russia
regulations related to the said Federal Law and because of the
application of measures envisaged by the Federal Law "On the
Central Bank of the Russian Federation (Bank of Russia)", taking
into account the real threat to the interests of creditors and
depositors.

CB ICB LLC violated the laws and Bank of Russia regulations on
countering the legalization (laundering) of criminally obtained
incomes and the financing of terrorism by failing to timely and
properly provide information to the authorized body.  Moreover,
the credit institution was involved in suspicious operations. The
management and owners of the bank did not take effective measures
to bring its activities back to normal and under such
circumstances the Bank of Russia decided to remove CB ICB LLC from
the banking market.

The Bank of Russia, by its Order No. OD-4700, dated December 22,
2016, appointed a provisional administration to CB ICB LLC for the
period until the appointment of a receiver pursuant to the Federal
Law "On Insolvency (Bankruptcy)" or a liquidator under Article
23.1 of the Federal Law "On Banks and Banking Activities".  In
accordance with federal laws, the powers of the credit
institution's executive bodies are suspended.

CB ICB LLC is a member of the deposit insurance system.  The
revocation of the banking licence 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, CB
ICB LLC LLC ranked 487th by assets in the Russian banking system.


IRKUTSK OBLAST: S&P Assigns 'BB' Rating to Proposed RUB5BB Bonds
----------------------------------------------------------------
S&P Global Ratings said that it had assigned its 'BB' long-term
global scale issue credit rating and its 'ruAA' Russia national
scale rating to the proposed Russian ruble RUB5 billion (about
US$81 million as of the date) five-year amortizing senior
unsecured bond that Russia's Irkutsk Oblast (BB/Stable/--; 'ruAA')
plans to issue on Dec. 26, 2016.

The bond will have 20 fixed-rate coupons and an amortizing
repayment schedule.

The coupon rate will be defined during the bond placement.
According to the redemption schedule, 20% of the bond is to be
repaid in 2019, 30% in 2020, and 50% in 2021.

RATINGS LIST

Irkutsk Oblast
Senior Unsecured
  Issue
   Local Currency                              BB
   Russia National Scale                       ruAA


ROSAGROLEASING JSC: Fitch Affirms 'BB' LT Issuer Default Rating
---------------------------------------------------------------
Fitch Ratings has affirmed JSC Rosagroleasing's Long-Term Issuer
Default Rating (IDR) at 'BB' with a Stable Outlook.

KEY RATING DRIVERS

IDR AND NATIONAL RATINGS SENIOR DEBT
RAL's ratings are driven by potential support from the state. In
assessing support, Fitch views positively: (i) RAL's 100% state
ownership and track record of past equity injections; (ii) the low
cost of potential support given the company's small size and low
leverage (iii) the company's role (albeit somewhat limited) in the
execution of state programmes to support the agriculture sector.

At the same time, the two-notch difference between the company's
Long-Term IDR and those of the Russian sovereign (BBB-) reflects
RAL's lower systemic importance and policy role compared with
large state banks, specifically Russian Agricultural Bank (BB+),
in supporting the agricultural sector. It also factors in
potentially weaker support propensity given the company's weak
performance and previous corporate governance failings leading to
large credit losses, as well as potential further problems, which
may require extra provisioning.

RAL is a state-owned leasing company focusing on subsidised
directed leases to customers from the agricultural sector. Leases
under the government sector support programme dominate the
portfolio (97% of net investments in lease (NIL) before reserves
at end-2015), and is generally funded by state capital injections.
The subsidised book has been stable in recent years, as the
company is using proceeds from lease repayments for issuance of
new leases, while the commercial book (and hence lending from
third parties) has been gradually amortising and RAL does not
intend to increase it.

RAL operates in a segment with high operational, market and fraud
risks. Governance failings under previous management prior to 2010
additionally weigh on asset quality metrics (80% of credit
reserves have been made against legacy leases). The company does
not write off problem assets and therefore the share of NPLs (over
90 days overdue) was a high 43% of end-2015 NIL plus lease
receivables (the last date at which data is available), 56% of
this was reserved. Exposures that are overdue by less than 90 days
amounted to another 9% of NIL. Total unreserved problematic NIL
was RUB14.5bn or 27% of equity.

In addition, RUB19.6bn of other assets were problematic (these
include trade and other receivables and advances paid) but these
were almost fully reserved.

Given the company's low leverage (debt-to equity ratio of 10% at
end-2015), it has the capacity to comfortably reserve problem
assets. However, the newly issued leases may be a source of
additional risks.

RAL has no plans to increase leverage, and given the small capital
contribution of RUB1.3bn it expects in 2017 the company will rely
on reinvesting proceeds from the existing lease portfolio. RAL is
included in the state programme of agricultural development for
2013-2020, but any expansion of new originations will depend on
capital injections.

RAL's borrowings (RUB5.2bn at end-2015, all loans from banks) were
equal to a small 8% of total assets, meaning only limited
refinancing and liquidity risk. Russian state-owned banks
accounted for 91% of this funding. RAL's borrowings were all
secured, mainly by the company's deposits in banks, but also by
lease receivables.

Fitch has downgraded the National Rating to 'AA-(rus)' from
'AA(rus)' to bring it in line with the latest Russian national
scale mapping.

RATING SENSITIVITIES

RAL's ratings are sensitive to changes in the Russian sovereign's
ratings. The two-notch difference between the ratings of RAL and
the sovereign may narrow in case of a marked strengthening of its
policy role and continuing provision of capital support.
Conversely, a diminishing of the company's policy role or a sharp
increase in leverage as a result of attraction of market funding
could result in a downgrade.

The rating actions are as follows:

Long-Term Foreign Currency IDR: affirmed at 'BB'; Outlook Stable
Short-Term Foreign Currency IDR: affirmed at 'B'
National Long-Term rating: downgraded to 'AA-(rus)' from
  'AA(rus)'; Outlook Stable
Support Rating: affirmed at '3'
Support Rating Floor: affirmed at 'BB'


RUSHYDRO PJSC: S&P Revises Outlook to Pos. & Affirms 'BB/B' CCRs
----------------------------------------------------------------
S&P Global Ratings revised its outlook on Russian state-controlled
hydropower company PJSC Rushydro to positive from stable.  At the
same time, S&P affirmed its 'BB/B' long- and short-term corporate
credit ratings and 'ruAA' Russia national scale rating on the
company.

The outlook revision reflects S&P's expectation that
recapitalization and improving operating performance could prompt
an upgrade, fueled by expected strengthening in Rushydro's
financial metrics.  S&P currently assess its stand-alone credit
profile (SACP) at 'bb and see upside rating potential if the
company's credit measures sustainably strengthen, including funds
from operations (FFO) to debt above 30%, and if negative free
operating cash flow (FOCF) turns at least neutral following the
2017 peak S&P expects in capital expenditures (capex).

On Nov. 24, 2016, Rushydro's board approved recapitalization under
which state-owned VTB Bank acquires newly issued shares for
Russian ruble (RUB) 40 billion and quasi-treasury shares for
RUB15 billion.  As a result, VTB will hold 13% of Rushydro, with
the Russian government's stake dropping to 60.5% from 66.8%.

S&P expects RusHydro's financial metrics will benefit from ongoing
recapitalization and higher EBITDA generation, supported by low
costs and higher water levels at hydro power plants (HPPs),
capacity market liberalization for HPPs in 2017, and cost cutting
and capex optimization efforts, particularly at the company's
less-efficient thermal power generation subsidiary RAO Energy
System of the East.  This is offset by the large capex program set
to peak in 2017 and the resulting negative FOCF.

In 2016, Rushydro enjoyed higher water levels, which support
higher electricity output and increased EBITDA.  In 2017 and
beyond, the company should benefit from liberalization of
hydropower capacity payments.  Commercial capacity auctions have
already taken place and should bring incremental stable revenues.
As a hydropower-focused group, Rushydro benefits from its position
as a low-cost, renewable, and flexible electricity producer with
one of the largest power plant fleets in Russia.  Although the
Russian electricity industry has some overcapacity in S&P's view,
and even though electricity prices are inherently volatile, S&P's
expectation of positive economic growth in Russia starting in 2017
should help support electricity demand.

Still, S&P thinks Rushydro's FOCF will remain heavily negative due
to the expected capex peak in 2017.  This is the key constraint on
S&P's current SACP assessment for Rushydro, but S&P assumes that
capex will fall sharply in 2018.

Rushydro has an aging asset portfolio with large investment needs.
With over 75% of installed capacity in hydropower, Rushydro is
naturally exposed to weather conditions and water levels.  In
addition, Rushydro's regulated thermal subsidiary RAO ES of the
East continues to face risks linked to a relatively high cost base
and politicized tariff-setting.  Although Rushydro has approved a
new cost-cutting program, S&P sees uncertainty around how quickly
the company will implement it.  Also, S&P continues to see some
risk that the Russian government could manage RusHydro's strategy
with broader social or political intentions, rather than based
purely on company-focused economic aims.  In the past, this was
illustrated by RusHydro's acquisition of a controlling stake in
RAO ES of the East, which was the reason why RusHydro needed to
make additional sizable investments in the region's electricity
infrastructure.  In 2016, the Russian government introduced the
requirement of a 50% dividend payout for most government-related
entities (GREs), including Rushydro, regardless of the company's
heavy investment program.

"We believe that recapitalization demonstrates ongoing government
support and the government's commitment to retain its strategic
influence over Rushydro.  The company plays a very important role
for balancing the country's energy system, and remains the key
supplier of electricity in some regions, notably in the Far East.
If Rushydro were to default, this could have reputational
consequences for the government and other GREs, in our view.
Still, Rushydro competes with other commercial generators and its
stake in Russia's overall electricity output is about 15%.  We see
a strong link between Rushydro and the government, and we expect
the government will keep majority control in the company, in line
with the Presidential Decree that sets the minimum government
stake at 60.5%.  Still, we continue to see potential uncertainty
related to the government's plan to increase budgetary revenues
through privatization and higher dividends, and we note frequent
changes in its privatization program.  Therefore, we continue to
foresee a moderately high likelihood of extraordinary state
support to Rushydro in the event of financial distress," S&P said.

"We understand that under the forward contract between Rushydro
and VTB, Rushydro would have to cover the difference if the price
of VTB's stake in five years is below its current price under the
transaction, adjusted for dividends paid to VTB (if the price of
the stake is higher than currently, VTB would have to pay the
difference to Rushydro).  However, Rushydro would not have to
repurchase the whole stake.  In our analysis, we treat
recapitalization proceeds as equity, and Rushydro's liability
under the forward contract as debt.  We understand that the deal
is likely to close in the first quarter of 2017 and that
management plans to use the proceeds to repay RUB55 billion of
legacy debt at the level of its weakest thermal generation
subsidiary RAO ES of the East," S&P noted.

The positive outlook on Rushydro reflects potential rating upside
if the recent recapitalization and improving operating performance
sustainably strengthen the company's financial risk profile over
the next 12-18 months, including FFO to debt above 30% and
negative FOCF turning at least neutral.

S&P could upgrade Rushydro if S&P sees sustained strengthening in
the financial risk profile, leading to a stronger SACP.  This
could happen, for example, if S&P expected that FFO to debt would
stay sustainably above 30%, and Rushydro's FOCF turned to neutral
or positive after the expected 2017 peak in capex.

S&P would also likely raise its rating on Rushydro if S&P raised
its rating on the sovereign, or if S&P revised up its assessment
of the likelihood of extraordinary government to the company.

S&P could revise the outlook to stable if the company's high
investments offset benefits from the recapitalization and
strengthened operating performance, while preventing sustained
strengthening in credit measures.  This could lead to FFO to debt
staying below 30%, and FOCF remaining negative.


SOVCOMBANK: Moody's Assigns B1 Long Term LC/FC Deposit Ratings
--------------------------------------------------------------
Moody's Investors Service has assigned B1 long-term and Not-Prime
short-term local currency and foreign currency deposit ratings, a
b1 baseline credit assessment (BCA) and Adjusted BCA, as well as a
Ba3(cr)/NP(cr) Counterparty Risk Assessment (CR Assessment) to
Sovcombank. All long-term deposit ratings carry a stable outlook.

RATINGS RATIONALE

The B1 long-term deposit ratings assigned to Sovcombank
incorporate its b1 Baseline Credit Assessment and reflect the
bank's: (1) strong loss absorption capacity -- evidenced by its
high pre-provision profitability, robust capital buffers and
adequate provisioning that together provide a considerable cushion
to withstand potential erosion in asset quality; (2) sound asset
quality indicators supported by good portfolio diversification and
the bank's increased focus on large corporates with good credit
profiles and Russian sub-sovereigns; (3) adequate funding and
liquidity profiles; and (4) exposure to market risk.

STRONG LOSS ABSORPTION AND SOLID ASSET QUALITY

The assigned ratings reflect Sovcombank's strong loss absorption
supported by the bank's robust capital buffers and strong income
generating capacity. Sovcombank reported solid capital metrics
with consolidated Tier 1 and Total Capital Adequacy ratios of
11.5% and 14.7%, respectively, at June 30, 2016, and Moody's
expects its capital adequacy to remain stable over the next 12-18
months supported by internal capital generation.

Since year-end 2014, Sovcombank's shareholders' capital increased
by almost five -- fold to RUB56.3 billion from RUB11.6 billion.
The increase was largely boosted by a revaluation of the bond
portfolio in 2015-H1 2016. For 9M 2016, Sovcombank posted net
profit of RUB27.8 billion, which translated into a strong
annualized Return on Average Assets of 7.5% and Return on Average
Equity of 89%. Moody's expects that in the absence of revaluation
gains, Sovcombank's recurring profitability will remain solid over
the next 12-18 months, supported by its strong margin (over 5%),
stabilized cost of risk, strong fees and commissions and the
bank's cost efficient business model. Recently-acquired
Metallurgical Commercial Bank (B2 stable, b2) will likely
strengthen Sovcombank's profitability in the long term.

The bank's asset quality is another related credit strength, which
reflects the bank's improved diversification and increased focus
on creditworthy customers from corporate and sub-sovereign
sectors. As of September 30, 2016, the bank's problem loans
(impaired corporate and retail loans overdue more than 90 days)
accounted for 4.4% of gross and were sufficiently covered by loan
loss reserves (108%). A more substantial 60% of the asset base was
invested in fixed-income securities, which predominantly consisted
of Russian Eurobonds rated Ba and bear limited credit risk.

MARKET RISK

The assigned ratings also reflect Sovcombank's exposure to an
elevated market risk given that the bank's fixed income portfolio
accounted for around 60% of total assets or over 500% of the
bank's equity as of September 30, 2016. While it is not Moody's
central scenario, the securities portfolio could face increased
volatility if the operating environment significantly
deteriorates, exerting negative pressure on the bank's
profitability and capital.

ADEQUATE LIQUIDITY AND FUNDING PROFILES

Moody's expects Sovcombank's liquidity profile to remain healthy
over the next 12-18 months. The bank's liquidity management proved
to be efficient amid market turbulence and the high interest rate
environment at the end of 2014 and early 2015. Its funding
structure reflects high reliance on interbank funding related to
Repo transactions -- around 31% of total liabilities at the end of
September 2016. However, the bank funding and liquidity profiles
benefit from its established deposit taking franchise, which
provides the bank with a granular and stable funding source.
Customer accounts, mainly comprising retail deposits, accounted
for 60.4% of total liabilities and Sovcombank has maintained a
sufficient buffer of liquid assets -- around 35% of total
liabilities -- as of end-September 2016, consisted mainly
unpledged securities and cash .

STABLE OUTLOOK

The stable outlook on the bank's ratings reflect Moody's
expectations that over the next 12-18 months Sovcombank's credit
profile will not deteriorate and the bank will maintain robust
profitability, healthy capital position and liquidity profiles and
will remain resilient to any pressures arising from the
challenging operating environment.

WHAT COULD MOVE THE RATING -- UP/DOWN

A longer track record of sustainable and robust financial
performance driven by recurring income, along with a strong loss-
absorption capacity in line with Moody's expectations in the next
12-18 months could result in a positive rating action. Conversely,
negative pressure could be exerted on Sovcombank's ratings in the
case of a substantial deterioration of the banks' asset quality or
liquidity profile.


STOLICHNAYA RASCHETNAYA: Placed on Provisional Administration
-------------------------------------------------------------
The Bank of Russia, by its Order No. OD-4697, dated December 22,
2016, revoked the banking license of Moscow-based credit
institution Non-bank Credit Institution Stolichnaya Raschetnaya
Palata, limited liability company (NCI Stolichnaya Raschetnaya
Palata LLC) from December 22, 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 application
of supervisory measures envisaged by the Federal Law "On the
Central Bank of the Russian Federation (Bank of Russia)", given a
real threat to creditors' interests.

NCI Stolichnaya Raschetnaya Palata LLC did not comply with the
requirements of the legislation on anti-money laundering and the
financing of terrorism with regard to proper notification of the
authorised body about operations subject to obligatory control.
Besides, the credit institution was involved in dubious transit
operations.  The management and owners of NCI Stolichnaya
Raschetnaya Palata LLC did not take efficient and sufficient
measures to bring its activity back to normal.  Under such
circumstances the Bank of Russia decided to remove the credit
institution from the banking market.

The Bank of Russia, by its Order No. OD-4698, dated December 22,
2016, appointed a provisional administration to NCI Stolichnaya
Raschetnaya Palata LLC for the period until the appointment of a
receiver pursuant to the Federal Law "On Insolvency (Bankruptcy)"
or a liquidator under Article 23.1 of the Federal Law "On Banks
and Banking Activities".  In accordance with federal laws, the
powers of the credit institution's executive bodies are suspended.

According to the financial statements, as of December 1, 2016, NCI
Stolichnaya Raschetnaya Palata LLC ranked 613th by assets in the
Russian banking system.



===============
S L O V E N I A
===============


HOLDING SLOVENSKE: Moody's Assigns Ba2 LT Corporate Family Rating
-----------------------------------------------------------------
Moody's Investors Service has assigned a definitive Ba2 long-term
corporate family rating (CFR) and a first-time probability of
default rating of Ba2-PD to Holding Slovenske elektrarne d.o.o.
(HSE). The outlook on all ratings is stable.

A corporate family rating is an opinion of the HSE group's ability
to honour its financial obligations and is assigned to HSE as if
it had a single class of debt and a single consolidated legal
structure.

RATINGS RATIONALE

The rating action follows HSE's signing of a Term Loan Facility of
EUR180 million, and a Revolving Credit Facility (RCF) of EUR40
million on December 20, 2016, with an international consortium of
five and three banks respectively. These facilities should allow
HSE to complete the refinancing of its EUR215 million Bridge
Facility and provide additional liquidity for operational needs.
Moody's had assigned a provisional (P)Ba2 CFR on 3 March 2016
predicated on the assumption that HSE would take the necessary
steps to address its 2016 debt maturities in a timely fashion.
This medium-term refinancing concludes this exercise.

HSE's Ba2 CFR is supported by (1) its dominant market position as
the largest power generator in Slovenia, (2) the higher power
prices in Slovenia than other major European markets such as
Germany given the dynamics of the regional power markets to which
Slovenia is linked, and (3) a high probability that HSE's 100%
owner, the Republic of Slovenia (Baa3 positive), would step in on
a timely basis to avoid a payment default of HSE if this became
necessary.

The rating is constrained by the following factors: (1) the
relatively small size of the company's generation portfolio in the
context of the wider European power markets and its lack of retail
customer base, (2) its mix of fairly volatile hydro generation,
and lignite-based generation whose profitability is challenged in
current market conditions, and (3) its high, but reducing,
leverage.

The new loan agreements conclude a broader refinancing exercise
initiated in late 2015 in relation to the newly constructed 600
megawatt block at the lignite-fired Sostanj power plant (TES Unit
6). Starting from 2016, the company should be free cash flow
positive, given the expected reduction in capital expenditure
after completion of its major investment programme. Cash flow
generation should be further supported by an improved efficiency
of HSE's thermal generation assets, following the commissioning of
TES Unit 6 in mid-2015, as well as the implementation of cost
optimisation measures across the group. The above developments,
combined with scheduled debt repayments and restrictions on
dividend payments, should result in a gradual deleveraging of
HSE's balance sheet. Moody's expect the company's adjusted net
debt/EBITDA ratio to decrease from a high of 9.0x at 31 December
2015 to some 6.0x at end-2016. Nonetheless, HSE will need to
continue to deleverage, in line with its stated strategy, in order
to comply with increasingly tight covenants in its bank loan
documentation over forthcoming years.

HSE's rating incorporates three notches of uplift from its
baseline credit assessment (BCA) of b2. The BCA reflects Moody's
view of the standalone credit quality of HSE absent any support
that may be forthcoming from the Republic of Slovenia to avoid a
payment default. The high support assumption embedded in HSE's
rating reflects the strategic importance of the group to the
state, and is evidenced by a number of factors, which include (1)
the provision of a state guarantee of a EUR440 million EIB loan,
(2) issuance of a comfort letter confirming HSE's strategic role
in Slovenia's economy, and (3) HSE's designation as a "strategic
asset" in the government's Ordinance on the Management Strategy of
State Capital Investments, which minimises the likelihood of any
potential privatisation plans.

RATIONALE FOR THE STABLE OUTLOOK

The rating outlook is stable reflecting Moody's expectation that
HSE will be able to maintain a financial profile in line with
guidance for the current rating of funds from operations
(FFO)/debt of at least high single digits in percentage terms, due
to a reduced investment programme and lack of shareholder
distributions.

WHAT COULD CHANGE THE RATING UP/DOWN

The rating could come under positive pressure if the company were
able to demonstrate an improved operating and cash flow profile,
as evidenced by FFO/debt comfortably above 10% on a sustained
basis. This could be achieved by significant progress in the
deleveraging of HSE's balance sheet, potentially supported by a
marked improvement in results from thermal generation.

The rating could come under downward pressure if (1) HSE was
unable to deleverage its balance sheet as anticipated and/or was
consequently unable to meet the financial covenants in its bank
loans, or (2) the liquidity profile were to deteriorate such that
it could not support group day-to-day operations, leading to a
potential need for further external financing.

The methodologies used in these ratings were Unregulated Utilities
and Unregulated Power Companies published in October 2014, and
Government-Related Issuers published in October 2014.

Headquartered in Ljubljana, Slovenia, HSE is the largest power
generation in the country (the so-called "first pillar" of
domestic electricity production). Its total installed capacity as
of end-2015 amounted to around 2.2 gigawatts, which represented
around 60% of the total installed generation capacity in Slovenia.
HSE's generation base comprises various run-of-river hydro-power
plants, one pump-storage plant, as well as lignite-fired thermal
power plants. In addition, HSE owns and operates a lignite mine,
which covers all of the group's thermal generation needs. The
company is 100% owned by the government of Slovenia.



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


GRIFOLS SA: S&P Affirms 'BB' CCR on Announced Hologic Acquisition
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' long-term corporate credit
rating on Spain-based global specialty biopharmaceutical company
Grifols S.A. following the company's announcement that it will
acquire Hologic Inc.'s specialty diagnostic assets for
$1.85 billion.  The outlook remains stable.

At the same time, S&P affirmed its 'BB' issue rating on Grifols'
senior secured bank debt.  The recovery rating on this instrument
remains '3', indicating S&P's expectation of meaningful recovery
in the higher half of the 50%-70% range in the event of a payment
default.  S&P also affirmed its 'B+' issue rating on the unsecured
notes issued by fully owned U.S. subsidiary Grifols Inc.  The
recovery rating on this instrument remains '6', indicating S&P's
expectation of negligible (0%-10%) recovery in the event of a
payment default.

Following Grifols' announcement that it will acquire Hologic's
assets for $1.85 billion (partly funded by an additional
$1.7 billion in debt), S&P forecasts that the company's adjusted
leverage will increase to about 4.5x at the end of 2017 from 3.8x
at the end of 2016.  Because of the weakening credit protection
metrics that S&P anticipates following this transaction, it has
revised its assessment of Grifols' financial risk profile to
aggressive.

S&P expects that the company's financial metrics will improve
gradually through at least 2018 because of an increase in absolute
EBITDA and a progressive uptake in cash generation in the current
investment cycle.  Grifols' free cash flow generation should be
constrained by inventory build-up and substantial investment in
new capacity in the next three years.  This year, for example,
Grifols launched a major infrastructure project dedicated to meet
demand and secure its growth expectations from 2022-2023.  In a
nutshell, Grifols will add 6 million liters of primary
fractionation capacity, taking the total to 18.5 million liters,
and add sufficient downstream purification capacity.  The total
cost of this investment is expected to be $360 million, which is
on top of investments required to open new donor centers and
procure plasma.

S&P's adjustments to 2016 debt include about EUR240 million of
obligations under operating leases, about EUR250 million of
factoring remaining due end-2015, and EUR325 million of
unamortized financial expenses.  In addition, S&P nets the
adjusted debt with approximately EUR1 billion of surplus cash,
excluding S&P's estimates of trapped cash.

S&P expects Grifols adjusted leverage willbe in the 4x-4.5x range
by the end of 2018 as well as adjusted EBITDA interest coverage
remaining comfortably above 4x, in the absence of any significant
debt-funded acquisition in the next two years.

Following the consolidation of its diagnostic business, S&P still
views Grifols' business risk as satisfactory, reflecting primarily
the group's No. 3 position in the growing blood plasma-derived
biopharmaceutical market and its well-diversified geographic
spread, with established positions in both mature and emerging
markets.

The company's bioscience division remains the key profit driver,
contributing about 80% of its sales and EBITDA.  However, the
group is further increasing its presence in the diagnostic market;
it substantially strengthened its capacity in this area with the
acquisition of Novartis' blood transfusion diagnostic unit in
January 2014.  The contemplated acquisition of Hologic's specialty
diagnostic (NAT) assets should enhance Grifols' diagnostic
competitive position and profitability, with the EBITDA margin
expected to improve to about 40% (pro forma the Hologic
acquisition) from 18%.  The diagnostics business will account for
about 18% of the group's sales in 2016, and its share is expected
to remain about the same in 2017 because Grifols was already
consolidating all revenues from the business.

The plasma derivatives industry is concentrated, with two-thirds
of the global market dominated by the top three players (CSL,
Shire, and Grifols).  These three companies control about 90% of
the key U.S. market and account for about 70% of all collection
centers worldwide.  Large pharmaceutical companies have left this
market and are unlikely to return, given the industry's relatively
small size and unique requirements.

As a key constituent of life-saving drugs, the plasma industry
(collection and fractionation) is highly regulated and benefits
from high barriers to entry.  This is because it requires sizable
capex, and there is significant lead time before capacity is
built, certified, and operational.  The risk of substitution or
generic competition is limited, given the importance of production
expertise in the industry.  The only alternatives to some plasma-
derived products are recombinants (genetically engineered clotting
factors), which are more expensive and more difficult to create
than plasma products; S&P understands that other products have no
substitutes.

In addition to its strong growth prospects because of new disease
indications and increased uses in emerging markets, this market is
characterized by strong profitability because end-product price
increases can offset rising prices for raw materials.

Grifols' leading brand-name drugs have prominent market positions
globally.  These include Intravenous Immoglobulin, the leading
product of the plasma derivatives market; Alpha-1 for specific
pulmonary indications; and plasma-derived factor VIII, which is
used mainly for treating hemophilia.  Grifols also enjoys a solid
No. 2 position in Albumin, with strong market shares in the
largest markets--the U.S. and China.  In addition, Grifols reports
good diversity of revenues by geography and, in part, products.
Grifols' revenues come from the U.S. and Canada (about 65%),
Europe (20%), and the rest of the world including Asia and Latin
America (15%).  The company has established market positions in
both mature countries and fast-growing emerging markets such as
China and Brazil.

Negatively, the plasma industry is exposed to inherent risk of
product contamination or product withdrawal, which could lead to
significant revenue loss and liabilities.  However, Grifols has a
strong track record in terms of quality.

S&P is also monitoring the potentially disruptive technologies
that could affect Grifols' market share despite its high barriers
to entry.  For instance, new entrants in the specific FVIII
market--such as Roche or Shire--can offer a compelling alternative
to plasma-derived FVIII.  However, S&P considers the threat to be
limited to less than 10% of Grifols's Bioscience sales.

Lastly, S&P expects that Grifols' capacity roll-out program will
affect its margins in the next two years.  The costs of expanding
its plasma collection centers -- to about 225 in 2020 from 160
currently -- should partially be offset by excess capacity
reductions at the Clayton facility.  S&P also views favorably
Grifols' vertical integration model, which gives it direct control
over its blood plasma supply and inventory.  The subsequent lower
reliance on third-party suppliers for its principal material could
also have positive gross margin implications.

"The stable outlook reflects our opinion that Grifols will acquire
Hologic's assets and successfully integrate its high-margin blood
screening expertise, enhancing the competitive position of
Grifols' diagnostic division.  We also expect the adjusted debt-
to-EBITDA ratio to spike at close to 4.5x in 2017, reflecting the
Hologic transaction being almost entirely debt-funded.  However,
we consider that leverage will progressively decrease thereafter
because of solid performance in the plasma derivatives business.
We anticipate Grifols will demonstrate lower cash generation
capacity in the next two years as it embarks on a new industrial
investment phase, resulting in higher ramp-up working capital
outflows and sustained capital expenditure (capex) needs.
Finally, we are factoring in limited bolt-on acquisitions of
EUR100 million in our base case and limited returns to
shareholders.  We are excluding from our base case any significant
debt-funded acquisitions in the next 24 months," S&P said.

S&P could lower its rating if Grifols failed to deleverage below
4.5x within the 12 months following the proposed acquisition of
Hologic assets.  S&P believes this would most likely occur due to
strong operational setbacks, such as higher-than-expected plasma
costs, higher-than-expected costs of collection capacity
expansion, or an unexpected slowdown of the more competitive
diagnostic business.  This could translate into deteriorating cash
generation capability and impair the company's ability to reduce
its leverage.  Also, S&P could lower the rating if Grifols were to
pursue an unexpected sizable debt-financed acquisition.

An upgrade could occur if Grifols continues to deleverage while
committing to a tight financial policy, though S&P considers
Grifols' track record of external growth to be a constraining
factor.  An upgrade would also be conditional on the company
improving its cash generation capacity following the substantial
investment plan it is committed to in the four coming years.
Therefore, S&P views an upgrade as unlikely in the next 12 months.


PAESA ENTERTAINMENT: S&P Revises Outlook to Pos. & Affirms B- ICR
-----------------------------------------------------------------
S&P Global Ratings revised the outlook on Spanish destination
resort PAESA Entertainment Holding, S.L. (PortAventura) to
positive from stable.  At the same time, S&P affirmed the 'B-'
issuer credit rating on the company.

In addition, S&P affirmed its 'B-' issue rating on PortAventura's
EUR420 million senior secured notes, issued by PortAventura
Entertainment Barcelona B.V.  The recovery rating on the pass-
through loan is '4', indicating S&P's expectation for average
recovery prospects in the higher half of the 30%-50% range, in the
event of a payment default.

The outlook revision reflects S&P's view that PortAventura's
credit ratios have improved further, driven by ongoing solid
operating performance.

PortAventura's operating results are generally ahead of S&P's
expectations for 2016.  S&P forecasts revenues will increase by 7%
for full-year 2016 and adjusted EBITDA will exceed EUR86 million.
S&P believes PortAventura's solid performance will continue in
2017, driven by the anticipated Ferrari Land opening on April 7,
2017.  Management has confirmed this opening date, despite a
recent fire that damaged a faáade of the Venetian Campanile
building in Ferrari Land (the damage was assessed as fairly mild
and costs are expected to be covered by PortAventura's insurance
policy).

By the time Ferrari Land opens, PortAventura will have invested
about EUR90 million in total; 80% of this has already been
committed as of year-end 2016.  The new park is aimed primarily at
families and Ferrari fans and will include the highest and fastest
roller coaster in Europe.  S&P expects it will bring about a
notable increase in visitors for 2017 (more than 0.7 million to
Ferrari Land alone, and close to 5 million in total).  S&P
understands PortAventura has signed a 10-year exclusivity
agreement with Ferrari, under which no other Ferrari theme park
can be opened in Europe.

S&P continues to assess PortAventura's business risk profile as
weak, given its reliance on a single-asset property for cash flow
generation, its limited operating and geographic diversity, a high
fixed-cost base, and notable seasonality of operations.  Although
S&P expects Ferrari Land to add to its business diversification,
it notes the location is next to PortAventura's other theme parks
so the single-asset risk is still relevant.

In terms of client base, S&P notes that domestic visits have
increased by over 10% to about 68% of total attendance, partly
offsetting the recent more than 50% decline in Russian visitors
(mainly on ruble depreciation).  In terms of seasonality,
PortAventura generates about 65% of its EBITDA in the third
quarter, which further exposes the company to possible earnings
volatility.  Lastly, as a leisure destination resort PortAventura
is exposed to discretionary consumer spending -- much more so than
regional parks, for example, where entry prices tend to be lower.

The abovementioned constraints are partly offset by PortAventura's
leading EBITDA margins, with a successful track record in yield
management; fairly high barriers to entry given the high capital
intensiveness of the industry; and its favorable location in terms
of good weather and an attractive tourism market.  Spain is
expected to have received over 70 million tourists in 2016 (about
25% in Catalonia).

PortAventura, which is located on the Costa Dorada in Spain, is
the second destination resort in Europe (after Euro Disney) by
number of resort rooms and visitors.  The resort includes a main
park with six themed areas, a water park, four 4-star and one 5-
star themed hotels with a total of 2,100 rooms, and a convention
center for 4,000 people.  In 2017, a third theme park dedicated to
the Ferrari brand will be added to the offering.

S&P assess PortAventura's financial risk profile as highly
leveraged, primarily reflecting the group's high debt to EBITDA of
above 5x.  S&P's financial risk profile assessment is also
constrained by the financial sponsor ownership by Investindustrial
and KKR.

Although PortAventura's financial risk metrics are at the top end
of the highly leveraged category -- particularly interest coverage
metrics -- S&P views the single-asset risk embedded in the
business risk profile as high, requiring a further adjustment in
the overall rating, in particular when compared to S&P's rated
leisure park operators.  Therefore, S&P continues to apply a
negative adjustment to the overall rating to reflect S&P's
negative comparable ratings analysis assessment.

The positive outlook reflects S&P's view of at least a one-in-
three chance that it could upgrade PortAventura in the next 12
months if the Ferrari Land opening materializes as planned,
bringing notable top line and EBITDA growth and driving adjusted
debt to EBITDA below 5x.  S&P also expects positive free operating
cash flows after capital investments as of 2017.

S&P could consider an upgrade if adjusted leverage metrics fall
sustainably below 5x, free operating cash flow turns positive in
2017, and the private equity owners indicate that the financial
policy would remain supportive at a higher rating level.  S&P also
expect EBITDA interest coverage to remain consistently above 2x
during the period.

S&P could revise the outlook to stable or negative during the next
12 months if PortAventura's business performance and key metrics
fall materially below S&P's expectations.  Negative rating
pressure could also build if PortAventura's leverage were to
materially increase beyond S&P's base case, liquidity fell to less
than adequate, or if free operating cash flow remained negative.



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


BELMOND INTERFIN: Moody's Hikes Corporate Family Rating to B2
-------------------------------------------------------------
Moody's Investors Service upgraded the ratings of Belmond Interfin
Ltd. including its Corporate Family Rating to B2, its Probability
of Default rating to B2-PD, and its Speculative Grade Liquidity
rating to SGL-1. At the same time, Moody's upgraded the ratings on
Belmond's senior secured bank credit facilities to B2. The rating
outlook is stable.

The upgrade acknowledges Belmond's earnings improvement which has
resulted in a notable improvement in credit metrics such that debt
to EBITDA (as calculated by Moody's using its standard
adjustments) has fallen to 5.2x for the twelve months ended
September 30, 2016 from 5.8x at December 31, 2015. Going forward,
Moody's believes that Belmond will be able to maintain this
improvement in credit metrics from earnings growth following
property renovations, the launch of the Grand Hibernian in August
2016, and the Confederation Cup in Russia which will more than
offset the earnings pressure in Brazil in 2017 as it anniversaries
the Olympics being hosted in Rio de Janeiro.

The following ratings are being upgraded:

   -- Corporate Family Rating to B2 from B3

   -- Probability of Default Rating to B2-PD from B3-PD

   -- Senior secured bank credit facilities to B2, LGD 4 from B3,
      LGD 3

   -- Speculative Grade Liquidity rating to SGL-1 from SGL-2

RATINGS RATIONALE

The B2 Corporate Family Rating reflects Belmond's very small scale
in terms of revenues and number of hotel rooms versus other hotel
operators, its geographic concentration in Italy and Peru and high
earnings seasonality. Belmond's rating acknowledges its moderately
high leverage with Moody's adjusted debt to EBITDA of 5.2x and
EBITA to interest expense of 2.2x for the twelve months ended
September 30, 2016. The rating is supported by Belmond's very good
liquidity and its well-known properties such as Belmond Hotel
Cipriani in Venice Italy and its Sanctuary Lodge in Machu Picchu
Peru.

The stable outlook reflects that Moody's believes Belmond's
earnings will continue to grow as the positive impact from
property renovations and the launch of the Grand Hibernian will
offset earnings pressure in Brazil in 2017 following the Olympics
in 2016.

Given Belmond's very small scale and geographic concentration,
Moody's expects it to maintain stronger credit metrics relative to
its rating category. Belmond's ratings could be upgraded should
debt to EBITDA be maintained below 4.5x while maintaining EBITA to
interest expense above 2.5x and EBITA margins above 15%.

Ratings could be downgraded should it become likely that Belmond's
debt to EBITDA would remain above 5.5x, should EBITA to interest
expense approach 1.25x, or should Belmond's liquidity materially
weaken.

Belmond Interfin Ltd. is a wholly owned subsidiary of Belmond Ltd.
Belmond Ltd. owns, part owns, or manages 35 deluxe hotels and
resort properties and several tourist trains and river cruises
around the world. Annual revenues are over $550 million.

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


COMMERCIAL MORTGAGE: Fitch Assigns 'BB' Rating to Class C Notes
---------------------------------------------------------------
Fitch Ratings has assigned COMMERCIAL MORTGAGE FUNDING DAC notes
due January 2035 ratings as follows:

GBP23.4m class A (ISIN XS1539836749): 'BBB+sf'; Outlook Stable
GBP2.2m class B (ISIN XS1539837556): 'BBBsf'; Outlook Stable
GBP2.2m class C (ISIN XS1539837630): 'BBsf'; Outlook Stable

The transaction is a securitisation of a EUR27.9m portion (the
note) of EUR370.6m Mesdag (Delta) class A notes (BBsf/Stable),
financed by the issuance of three long-dated pass-through
principal-only notes (the new notes). Mesdag (Delta), which is due
in January 2020, is a CMBS financing one loan backed by 55 Dutch
properties recently valued at EUR551m (December 2015). Principal
and interest receipts from the note are available to the issuer to
amortise the new notes in a fully sequential fashion.

KEY RATING DRIVERS
A combination of a principal-only format, the fully subordinated
tranching structure of the new notes, and a back-dated legal final
maturity are the relevant pillars supporting the uplift in the
ratings of the class A and B new notes above the rating of Mesdag
(Delta) class A notes, to which the class C new notes are credit-
linked.

The principal-only format means the new notes are capable of
defaulting only by remaining outstanding at their legal final
maturity date in January 2035 or upon a liquidation of Mesdag
(Delta) that leads to a loss on the Mesdag (Delta) class A notes.
Fitch assesses the former risk by testing that rental cash flow
accumulated holding the note until legal final maturity (without
credit to any underlying property sales), in the relevant rating
scenario, exceeds the relevant quantum of new notes. Fitch
assesses the risk of Mesdag (Delta) liquidation by checking that
the issuer's share of Mesdag (Delta) loan collateral value (in the
relevant rating scenario) is not below the relevant quantum of new
notes for any sustained period.

The loan underlying Mesdag (Delta) has paid down to EUR595m
currently from EUR638.4m in 2007, through amortisation, cash sweep
and sales proceeds. With a securitised loan-to-value (LTV) of 111%
reported in October 2016, the loan is expected to default at
maturity this month. Fitch believes that thereafter all proceeds
will be applied on each payment date first towards Mesdag
(Delta)'s revenue expenses (including interest on all its notes)
and then towards repayment of its class A notes.

As most senior note class, should the Mesdag (Delta) class A notes
remain outstanding after January 2020, Fitch expects holders
(including the issuer of the new notes) will assume effective
control in communications with the CMBS note trustee. This
arrangement will govern the remedial actions taken in respect of
Mesdag (Delta), notably enforcement of its notes and concomitant
switch in its priority of payments. Post-enforcement, Fitch
understands from the documentation that Mesdag (Delta) would
prioritise interest and principal owed under its class A notes
(after having cleared certain senior ranking claims) above all
other amounts owing to its creditors.

The timing of Mesdag (Delta) note enforcement is therefore of
relevance to holders of the new notes since it would trigger
preservation of the bulk of remaining loan collateral value
towards repayment of the Mesdag (Delta) class A notes. However, as
the issuer of the new notes owns only a minor holding of this
class, and the Mesdag (Delta) note trustee is expected to request
formal indemnification before taking certain actions, Fitch
assumes the associated uncertainty will delay note enforcement
action by five years after any Mesdag (Delta) issuer event of
default.

In scenarios above 'BBsf', this is assumed to prolong leakage of
Mesdag (Delta) loan cash flow as junior interest until the notes
are enforced and the switch in the priority of payments triggered.
Therefore prior to 2025, Fitch tests the effect of different
interest rate scenarios on such leakage. Fitch identifies its
"stable" interest rate scenario (3.5%) as most stressful: in
higher rates the Mesdag (Delta) class A notes absorb a higher
share of loan cash flow as interest, while in lower rates they
absorb a higher share of loan cash flow as principal - in either
case, available for the new notes.

After Mesdag (Delta) note enforcement, assumed in 2025 in
scenarios above 'BBsf', 10 years are left until the legal final
maturity of the new notes. Fitch analyses how much cash flow is
received from the note over this period: whether interest or
principal, it is applied towards repayment of the most senior
class of new notes outstanding. Fitch finds that without giving
credit to property disposals, repayment of the relevant class in
the respective rating stress is complete approximately one year
before the legal final maturity.

KEY PROPERTY ASSUMPTIONS (all by Market Value, with Stable
Interest Rates at 3.5%)

  'BBsf' weighted average (WA) capitalisation (cap) rate: 7.8%
  'BBsf' WA structural vacancy: 16.9%
  'BBsf' WA rental value decline: 6%

  'BBBsf' WA cap rate: 8.3%
  'BBBsf' WA structural vacancy: 18.6%
  'BBBsf' WA rental value decline: 9.5%
  'BBBsf' WA capital depreciation: 9.7%

  'Asf' WA cap rate: 8.8%
  'Asf' WA structural vacancy: 20.3%
  'Asf' WA rental value decline: 13.3%
  'Asf' WA capital depreciation: 9.7%

RATING SENSITIVITIES
The change in model output that would apply if the capitalisation
rate assumption for each property is increased by a relative
amount is as follows:

Current ratings- class A/B/C: 'BBB+sf'/ 'BBBsf'/ 'BBsf'
Increase capitalisation rates by 10% class A/B/C/D: 'BBBsf'/
'BB+sf'/ 'BBsf'
Increase capitalisation rates by 20% class A/B/C/D: 'BBB-
sf'/BBsf'/'B+sf'

The change in model output that would apply if the rental value
decline (RVD) and vacancy assumption for each property is
increased by a relative amount is as follows:

Increase RVD and vacancy by 10% class A/B/C: 'BBB+sf'/
'BB+sf'/'BBsf'
Increase RVD and vacancy by 20% class A/B/C: 'BBBsf'/
'BBsf'/'BBsf'

The change in model output that would apply if the capitalisation
rate, RVD and vacancy assumptions for each property is increased
by a relative amount is as follows:

Increase in all factors by 10% class A/B/C: 'BBB-sf'/
  'BB+sf'/'BB-sf'
Increase in all factors by 20% class A/B/C: 'BB+sf'/
  'BB-sf'/'CCCsf'


DTEK FINANCE: Seeks U.S. Recognition of U.K. Proceeding
-------------------------------------------------------
DTEK Finance plc filed a voluntary petition under Chapter 15 of
the Bankruptcy Code, seeking recognition in the United States of a
voluntary scheme of arrangement pending before the Chancery
Division (Companies Court) of the High Court of Justice of England
and Wales.

The Chapter 15 case was brought in the United States Bankruptcy
Court for the Southern District of New York by Johan Bastin, the
duly authorized foreign representative of the Debtor.

The Debtor is seeking recognition in the United States of the U.K.
proceeding to ensure "the enforceability and effectiveness of the
Scheme in the United States and to prevent any dissident creditors
from bypassing the effect of the Scheme by commencing litigation
or taking other actions in the United States to obtain a greater
recovery than other, similarly-situated creditors.

DTEK Finance is part of a group whose ultimate holding company is
DTEK Energy B.V.  The Debtor has never been, and is not currently,
an operating company.  The Debtor was incorporated to facilitate
capital raising on behalf of the Group.

The Group operates a privately-owned energy company in Ukraine.
Its businesses comprise three principal segments: (i) coal mining;
(ii) power and heat generation; and (iii) electricity and heat
distribution.

As of Sept. 30, 2016, the Group's total principal debt amounted to
approximately US$2,168 million (excluding accrued interest),
comprised of (i) existing notes, (ii) bank facilities (including
the bilateral loans, the club loans, the PXF facility, and mark-
to-market swaps), and (iii) essential bank lines, Court papers
show.

Adam J. Goldberg, Esq., at Latham & Watkins LLP, one of the
Petitioner's counsel, disclosed in an affidavit filed with the
Court that the Group has been operating with severely constrained
and rapidly deteriorating liquidity during most of 2015.  He noted
that as a consequence of this constrained liquidity position, the
Group has failed to make certain interest and principal payments,
and the Group requires a full-scale restructuring of its capital
structure, including a restructuring of the Existing Notes.

According to Mr. Goldberg, the rapid deterioration of
geopolitical, social and economic conditions that occurred in
Ukraine in 2014 and continued, albeit at a slower rate, for most
of 2015 and the first part of 2016, has led to: (i) the
disruption, suspension and/or reduction of operations at some of
the Group's production assets; (ii) a decline in market conditions
and energy consumption in Ukraine; (iii) the virtual closing of
commercial international financial markets for Ukrainian borrowers
and issuers; (iv) an increase in accounts receivable from
electricity and heat customers for the supplied electricity and
heat (the highest concentration of delinquent accounts was located
in the regions that are outside of the control of Ukraine's
government); and (v) insufficient level of the average power
tariffs set by NERC (the country's energy sector regulator) for
the thermal power generation in 2015 and the first half of 2016,
which fell short of the level needed to cover the Group's
operational costs including the costs of finance and maintenance
capital expenditure.

            Terms of Restructuring Under the Scheme

The Group and its advisors engaged in formal negotiations with an
ad hoc committee of Noteholders and its legal and financial
advisors starting in January 2016, regarding the terms of a
restructuring of the Existing Notes that would allow the Group's
business to continue as a going concern.  The Steering Committee
holds approximately thirty-three percent of the Existing Notes as
of the Petition Date.

After several months of intense effort, negotiation, and
deliberation with the Steering Committee, on Nov. 18, 2016, the
Group and the Steering Committee agreed to the terms of the
Restructuring.  In general terms, the Restructuring contemplates a
number of steps designed to facilitate an exchange of the Existing
Notes for newly-issued notes.

DTEK proposes to implement the Restructuring through the Scheme to
solve a significant part of the immediate and long-term debt
problems facing the Group for the benefit of all the Group's
stakeholders.  The Restructuring will only be implemented through
the Scheme if the Noteholders vote to approve the Scheme by the
requisite thresholds and sanctioned by the English Court.

If the Restructuring is implemented via the Scheme, each
Noteholder will receive its pro rata share of a single new series
of notes in the total aggregate principal amount of:

   (a) US$894,799,200, plus

   (b) all capitalized interest accrued or deferred and unpaid
       under the Standstill Scheme and interest accrued or
       deferred and unpaid between Oct. 28, 2016, and the date of
       the completion of the restructuring of the financial
       indebtedness of the Group with respect to the holders of
       the Existing Notes (excluding any default interest, fees,
       or charges or related interest, fees, or charges of
       similar effect), which amounts shall be rolled into the
       New Notes, plus

   (c) any amount of indebtedness the Bank Lenders elect to swap
       under their existing bank facilities up to a maximum
       aggregate amount of US$300 million in principal amount
      (plus any interest that has accrued or capitalized prior to
       the date of such exchange) into additional New Notes
       at par.

The key terms of the New Notes are as follows:

   (a) The New Notes will bear interest at the rate of 10.75% per
       annum with interest paid in cash quarterly and stepped-up
       in time, starting at 5.5% from the Restructuring Effective
       Date until Dec. 31, 2018, 6.5% in 2019, 7.5% in 2020, 8.5%
       in 2021, 9.5% in 2022 and 2023, and 10.75% in 2024.  The
       amount of interest equal to 10.75% minus the applicable
       cash payment interest rate for each year will be paid in
       kind and compounded on a quarterly basis.

   (b) The New Notes will mature on Dec. 31, 2024.

   (c) The outstanding principal amount of the New Notes will be
       due and payable in two instalments as follows: fifty
       percent on Dec. 29, 2023, and fifty percent on Dec. 31,
       2024.

   (d) The existing guarantees and sureties in respect of the
       Existing Notes will be cancelled and replaced by
       guarantees and sureties from the same Guarantors and
       Sureties to secure the New Notes.

   (e) Guarantor DEBV will pledge as security for the New Notes
       its receivable arising from the intercompany loans from
       DEBV to DTEK Oil & Gas B.V. (subject to certain
       conditions).

   (f) The New Notes will be governed by New York law.

"Although the Group cannot, of course, guarantee (even if the
Restructuring is successfully completed) that its business will be
successful in the future, DTEK's management and the Board believe
that the implementation of the Restructuring is in the best
interests of the relevant stakeholders taken as a whole (including
the Noteholders), in part because the Debtor will be in a better
position to service its debt obligations," Mr. Goldberg
maintained.

The Debtor applied to the English Court on Nov. 28, 2016, for an
order directing it to convene a meeting.  On Dec. 2, 2016, the
English Court held the Scheme Directions Hearing and issued the
Convening Court Order.  The English Court found that it could
exercise jurisdiction based, in part, on the fact that the center
of the Debtor's main interests is situated in the United Kingdom,
based upon the Debtor's connections to the United Kingdom.  Among
other things, the Convening Court Order set the Scheme Meeting for
10:00 a.m. (London time) on Dec. 19, 2016,

It is anticipated that a hearing to consider sanctioning the
Scheme, if it obtains requisite approval from the Noteholders at
the Scheme Meeting, will occur on Dec. 21, 2016.  After that
hearing, the Debtor anticipates the English Court will enter an
order sanctioning the Scheme.


DTEK FINANCE: Chapter 15 Case Summary
-------------------------------------
Chapter 15 Debtor: DTEK Finance plc
                   3rd Floor 11-12 Street St. Jame's Square
                   London, SW1Y 4LB
                   United Kingdom

Chapter 15 Case No.: 16-13521

Type of Business: Coal mining

Chapter 15 Petition Date: December 16, 2016

Court: United States Bankruptcy Court
       Southern District of New York (Manhattan)

Judge: Hon. Sean H. Lane

Authorized Representative: Johan Bastin

Debtor's Counsel: Adam J. Goldberg, Esq.
                  LATHAM & WATKINS, LLP
                  885 Third Avenue
                  New York, NY 10022
                  Tel: (212) 906-1200
                  Fax: (212) 751-4864
                  E-mail: adam.goldberg@lw.com

                         - and -

                  Adam E Malatesta, Esq.
                  LATHAM & WATKINS LLP
                  355 South Grand Avenue
                  Los Angeles, CA 90071
                  Tel: 213-891-7715
                  Fax: 213-891-8763
                  E-mail: adam.malatesta@lw.com

                         - and -

                  Marc A. Zelina, Esq.
                  LATHAM & WATKINS LLP
                  885 Third Ave.
                  New York, NY 10022
                  Tel: 212-906-1200
                  E-mail: marc.zelina@lw.com

Estimated Assets: Not Indicated

Estimated Debts: Not Indicated


ENTERPRISE INNS: S&P Raises Rating on GBP97MM Bonds to 'B+'
-----------------------------------------------------------
S&P Global Ratings said that it has reviewed its recovery and
issue-level ratings for Enterprise Inns PLC (ETI) that were
labeled as "under criteria observation" (UCO) after publishing its
revised recovery ratings criteria on Dec. 7, 2016.  With S&P's
criteria review complete, it is removing the UCO designation from
these ratings and are raising S&P's issue rating on the group's
GBP97 million unsecured convertible bonds to 'B+' from 'B'.  S&P
also revised the recovery rating on the unsecured convertible
bonds upwards to '2' from '3', indicating S&P's expectation of
substantial recovery prospects in the higher half of the 70%-90%
range in the event of a payment default.

The actions reflect the revised recovery rating cap applicable to
unsecured debt, combined with the overcollateralization of the
secured debt, which S&P believes will have sufficient residual
value to repay the convertible bonds at a default scenario.

These rating actions stem solely from the application of S&P's
revised recovery criteria and do not reflect any change in its
assessment of the corporate credit ratings for issuers of the
affected debt issues.

Key analytical factors:

   -- Following the publication of S&P's revised recovery ratings
      criteria on Dec. 7, 2016, we reviewed the group's recovery
      and issue-level ratings.  As a result of this review, S&P
      is raising its issue rating on the group's GBP97 million
      unsecured convertible bonds to 'B+' from 'B'.  The '2'
      recovery rating on this debt indicates S&P's expectation of
      substantial recovery in the higher half of the 70%-90%
      range in the event of a payment default.

   -- The revision of the recovery rating to '2' from '3' follows
      the revised recovery rating cap applicable to unsecured
      debt, combined with the overcollateralization of the
      secured debt, which S&P believes will have a sufficient
      residual value to repay the convertible bonds at a default
      scenario.  In addition, S&P affirmed its issue rating on
      ETI's senior secured notes at 'BB-'.  The recovery rating
      on this debt is unchanged at '1', indicating S&P's
      expectation of very high recovery of 90%-100% in the event
      of a payment default.

   -- S&P's hypothetical default scenario assumes lower consumer
      spending due to an economic downturn or changes in consumer
      habits.

   -- S&P values ETI as a going concern given its market-leading
      position.  However, due to the significant asset security
      provided to the debt instruments, S&P values the business
      using a discrete asset valuation.

   -- S&P calculates a stressed valuation for the current value
      of the asset pool (excluding the lotting premium) securing
      the notes and bank debt.

Simulated default and valuation assumptions
   -- Year of default: 2019
   -- Jurisdiction: U.K.

Simplified recovery waterfall
   -- Gross recovery value: GBP1,457 million
   -- Net recovery value for waterfall after admin expenses (5%):
      GBP1,384 million
   -- Estimated senior secured notes claim: GBP1,267 million
   -- Value available for senior secured notes claim:
      GBP1,384 million
   -- Recovery range: 90%-100%
   -- Recovery rating: 1
   -- Estimated senior unsecured notes claim: GBP99 million
   -- Value available for senior unsecured notes claim:
      GBP117 million
   -- Recovery range: 70%-90% (in the higher half of the range)
   -- Recovery rating: 2


KARHOO INC: Chapter 15 Case Summary
-----------------------------------
Chapter 15 Debtors:

      Karhoo Inc. (in administration)                    16-13545

      c/o Sidley Austin LLP
      787 Seventh Avenue
      New York, NY 10019

      Karhoo USA Inc. (in administration)                16-13546

      Karhoo Limited (in administration)                 16-13547

      Karhoo Technologies Limited (in administration)    16-13548

Chapter 15 Petition Date: December 20, 2016

Court: United States Bankruptcy Court
       Southern District of New York (Manhattan)

Foreign Representative: Paul Cooper, as Administrator in UK
Proceedings

Foreign Representative's
Counsel:                Michael G. Burke, Esq.
                        SIDLEY AUSTIN LLP
                        787 Seventh Avenue
                        New York, NY 10019
                        Tel: (212) 839-5300
                        Fax: (212) 839-5699
                        E-mail: mgburke@sidley.com

Estimated Assets: Not Indicated

Estimated Debts: Not Indicated

A full-text copy of the petition is available for free at:

           http://bankrupt.com/misc/nysb16-13545.pdf


KARHOO INC: Administrators File Chapter 15 Petition in U.S.
-----------------------------------------------------------
The administrators of Karhoo Inc., a London-based start-up that
offered a taxi-booking app as an alternative to Uber/Lyft, sought
Chapter 15 bankruptcy protection in New York to seek recognition
of its insolvency proceedings in the United Kingdom.

Founded in November 2014 in London, England, by Daniel Ishag,
Karhoo Inc., et al., are part of a group of companies that offered
a ride comparison app" as an alternative to the Uber/Lyft
"ride-sharing app" model.  Instead of maintaining its own fleet of
drivers and cars, Karhoo contracted with local dispatchers and
fleet owners, providing customers with a choice of vehicles and
prices through its mobile application.

Karhoo entered into approximately 700 contracts with fleet owners
(the "Supplier Contracts") and approximately 21 contracts with
dispatchers (the "Dispatch Contracts") in the cities in which it
did business, primarily London and several other cities in
England.

In total, Karhoo employed approximately 200 employees, the vast
majority of whom have been laid off or made redundant in recent
weeks.

The Debtors' (and Karhoo's) only funded debt is approximately $18
million in Secured Convertible Term Notes due March 11, 2017 (the
"Secured Notes") under that certain Securities Purchase Agreement
among Karhoo Inc., the Purchasers thereunder, and DNK USA, LLC as
administrative and collateral agent (the "Agent") for the
Purchasers dated October 11, 2016 (the "Securities Purchase
Agreement").

A total of 100,691,318 shares of Karhoo Inc. are outstanding, the
sale of which had generated approximately $33.65 million in
capital for Karhoo, in six rounds of sales.7 35.65% of the shares
are held, directly or indirectly (including through Powerful Ace
Ltd.), by Daniel Ishag.  Other co-founders of Karhoo, all UK
residents, hold 21.35%.  The remaining 42.99% of the shares are
held by several dozen investors.

                  Misuse of Promotional Codes

Since its founding, Karhoo aggressively marketed itself, seeking
both a larger share of the market in the cities it operated in and
a larger number of cities in which to operate.  Karhoo expanded
from its London roots to nine other English cities, New York
(where Karhoo was at a pilot stage), Paris, and Singapore, and had
plans to operate in another 29 cities worldwide, including other
major population centers in Europe and the United States, by the
end of 2016.  Karhoo expected to be in 400 cities by the end of
2020.  This expansion and marketing would require significant
amounts of capital.

However, Karhoo encountered a number of difficulties that proved
to be insurmountable.  These difficulties included the misuse and
misaccounting of promotional codes (often for rides of up to $40),
which were given out indiscriminately, which users would often use
for the most expensive trip possible, and which Karhoo permitted
users to re-use.  In October 2016, approximately 70% of Karhoo's
bookings were using promotional codes.  Similarly, in an effort to
retain users, Karhoo was generous with its refunds and other
compensation for poor experiences.  Karhoo also had problems with
the fraud protections in its payment processing system, such as
verifying a user's address or requiring an email address to set up
an account, leading to the rejection of many credit card payments
(at one point, reportedly reaching a 90% rejection rate).

Beginning around the beginning of October, many of Karhoo's
employees began working without pay in an attempt to turn around
the business.  At the end of October, Karhoo missed payroll in
both the United States and Israel; on Nov. 6, 2016, Karhoo Israel
had to put its employees in the Israeli R&D Center on notice of
termination.  In the meantime, Karhoo actively was seeking an
infusion of outside capital (in addition to the capital raised
through the sale of the Secured Notes), with company
representatives courting investors on multiple continents; by Nov.
7, 2016, the focus was on one particular investor who was being
provided reassurances about the state of Karhoo's business, and
who would not have the opportunity to do due diligence.  Karhoo's
management expressed a willingness to put $600,000 into Karhoo if
the investment were procured.  However, Karhoo's operational
difficulties made the investor wary, and on Nov. 7, 2016, the
investor declined to invest in Karhoo, leaving Karhoo with no
alternative investor and insufficient funds with which to operate.

In the final week of Karhoo's operations, given Karhoo's high
media profile, a number of press articles appeared commenting on,
and speculating on the reasons for, its demise. The Administrators
intend to fulfill their statutory duties under the Company
Directors Disqualification Act 1986 by investigating the Debtors'
circumstances in the months leading up to the Debtors' entry into
administration and submitting reports to the Department for
Business, Energy, and Industrial Strategy of the UK Government.

                       UK Administration

In light of Karhoo's difficulties, on Nov. 7, 2016, the boards of
directors of the UK Debtors determined it was necessary to cease
operations and enter administration so as to maximize the value of
Karhoo's assets.  On Nov. 9, 2016, as permitted by the Insolvency
Act, the board of directors appointed Paul Appleton and Paul
Cooper of David Rubin & Partners Ltd as administrators of both UK
Debtors (in such capacity, the "UK Debtor Administrators").  Later
that day, each of the UK Debtors filed a notice of appointment of
an administrator in the Chancery Division of the High Court of
Justice of England and Wales (the "English Court").

                             U.S. Cases

Paul Cooper, as administrator and foreign representative, on Dec.
20, 2016, filed Chapter 15 petitions for Karhoo Inc., Karhoo USA
Inc., Karhoo Limited and Karhoo Technologies LImited (Bankr.
S.D.N.Y. Lead Case No. 16-13545).

Mr. Cooper put the company into chapter 15 protection to halt
lawsuits in the U.S. and prevent the turnover of U.S.-based
operations.

The Debtors' principal place of business in the United States is
in New York, as are the US Debtors' principal assets in the United
States: Karhoo Inc. has a receivable under a lease termination
agreement with its landlord in Manhattan; the US Debtors are
parties to contracts governed by New York law and with forum
selection clauses specifying courts in Manhattan.  Further, the US
Debtors are defendants in a lawsuit brought in New York.

In October 2015, Karhoo Inc. contracted with ModSquad Inc.
("ModSquad") to provide customer support services to Karhoo. On
October 28, 2016, ModSquad commenced a breach of contract lawsuit
against the Debtors in the United States District Court for the
Southern District of New York, alleging that it is owed over
$670,000 for services rendered through October 2016 and for the
remainder of the term of a certain work order under the parties'
contract.

A copy of the verified petition for an order recognizing the UK
proceeding as foreign main proceeding is available at:

    http://bankrupt.com/misc/16-13545_Karhoo_3_Ch15_Memo.pdf

Counsel for Paul Cooper, as foreign representative in the U.S.
cases:

         SIDLEY AUSTIN LLP
         Michael G. Burke, Esq.
         Brian J. Lohan, Esq.
         Andrew P. Propps, Esq.
         787 Seventh Avenue
         New York, New York 10019
         Telephone: (212) 839-5300


PERMANENT TSB: DBRS Assigns 'B' Long Term Issuer Rating
-------------------------------------------------------
DBRS Ratings Limited initiated ratings coverage on Permanent TSB
Group Holdings plc (PTSBGH or the Group). DBRS has assigned a B
(high) Long-Term Issuer Rating, with a Positive trend and a Short-
Term Issuer Rating of R-4, with a Stable trend. Today's rating
action does not impact the existing ratings of permanent tsb
p.l.c. (PTSB or the Bank). The Intrinsic Assessment (IA), Issuer
Rating and Non-Guaranteed Long-Term ratings of permanent tsb, the
Group's operating bank, are currently BB (low) with a Positive
trend, and its Non-Guaranteed Short-Term Debt and Non-Guaranteed
Short-Term Deposits ratings are R-4 with a Stable trend.

The Long-Term Issuer Rating of PTSBGH is one notch below the BB
(low) IA of permanent tsb. This reflects the inherent structural
subordination of the holding company, and DBRS's expectation that
should there be need for a resolution plan to be enforced, then
PTSBGH would act as the single point of entry.

RATING DRIVERS

The ratings of PTSBGH will generally move in tandem with the IA of
permanent tsb.

Notes: All figures are in EUR unless otherwise noted.

The principal applicable methodology is the Global Methodology for
Rating Banks and Banking Organisations (July 2016). Other
applicable methodologies include the DBRS Criteria -- Support
Assessments for Banks and Banking Organisations (March 2016) and
DBRS Criteria: Rating Bank Capital Securities -- Subordinated,
Hybrid, Preferred & Contingent Capital Securities (February 2016).

RATINGS

Issuer            Debt Rated          Rating Action      Rating
------            ----------          -------------      ------
Permanent TSB     Long-Term             New Rating        B (high)
Group Holdings    Issuer Rating
plc

Permanent TSB     Short-Term            New Rating          R-4
Group Holdings    Issuer Rating
plc


VIRIDIAN GROUP: Fitch Affirms 'B+' LT Issuer Default Rating
-----------------------------------------------------------
Fitch Ratings has affirmed Viridian Group Investments Limited's
Long-Term Issuer Default Rating (IDR) at 'B+'. Fitch has also
affirmed Viridian Group Fundco II Limited's senior secured notes
at 'B+'/'RR4' and Viridian Group Limited's (VGL) and Viridian
Power & Energy Holdings Limited's super senior revolving credit
facility (RCF) senior secured ratings at 'BB+'/ 'RR1'. The Outlook
on the IDR is Stable.

"The affirmation reflects VGIL's adequate operating and financial
performance in the financial year ended March 31, 2016, and our
expectation for the financial metrics to remain well within our
rating guidance over the next three to four years. At the same
time the ratings are constrained by an expected increase in the
business risk due to the introduction of the integrated single
electricity market (I-SEM) in May 2018," Fitch said.

KEY RATING DRIVERS

Shareholder Change Credit Positive
The arrival of a long-term strategic investor and the subsequent
extinguishment of a subordinated shareholder loan are positive for
the ratings. Although the repayment does not result in improved
credit metrics since Fitch excluded this facility from debt
calculations, it has the effect of simplifying VGIL's capital
structure.

In April 2016, US-based infrastructure fund I Squared Capital (I
Squared) acquired a 100% stake in Viridian Group Investments
Limited (VGIL). Fitch Ratings expects the new shareholder to
pursue growth opportunities whilst maintaining a debt-to-capital
ratio of 45%-60%, which implies a broad funds from operations
(FFO) adjusted net leverage band from 3.5x to 6.5x. Fitch views
the possibility of opportunistic acquisitions as an event risk for
the ratings.

Business Risk to Increase

Fitch expects VGIL's business risk to increase following the
introduction of the I-SEM scheduled for May 2018. This is because
the current regulated capacity payments are to be replaced with
competitive reliability auctions, increasing uncertainty over
long-term cash-flow generation for VGIL's Huntstown plants. The
reduction in capacity revenue may be partially or fully offset by
ancillary services income. Fitch may revise rating sensitivities
once Fitch have ascertained the impact of I-SEM introduction on
the predictability of the company's cash flows.

Target Renewable Portfolio Reached

In FY16, VGIL invested GBP41 million of equity in renewable
assets, which brought its portfolio of wholly owned windfarms in
operation, under construction and in development to 233MW at 31
March 2016, including 31MW of capacity in various stages of
obtaining planning permission. In August to October 2016, the
company acquired three windfarms in development with a total
capacity of 64MW. With the latest acquisitions the size of VGIL's
renewable portfolio approaches 297MW, nearing its target of 300MW.

As more than 80% of the portfolio capacity is currently either
under construction or in development, Fitch expects significant
capex to continue throughout FY17-FY18, with the company turning
free cash flow (FCF) positive in FY19. Fitch also expects that as
new wind farms start operations, a material amount of dividends
would be up-streamed to VGIL. This would free up debt capacity for
new strategic undertakings, which are unclear at this stage.

Non-Recourse Project Finance Deconsolidated

Most of VGIL's renewable projects are around 70% debt-financed.
The project financing is arranged on a non-recourse basis and the
renewable assets sit outside the restricted group. Fitch therefore
deconsolidates non-recourse project finance debt for the purpose
of ratio calculation.

The recent windfarm acquisitions (64MW) were financed by VGIL's
cash flows and development capex may be funded from within the
restricted group, depending on the availability of non-recourse
project financing.

Commensurate Financial Profile

Fitch expects VGIL's financial metrics to remain within the rating
guidelines in the medium term. Fitch forecasts average FFO
adjusted net leverage of 4.6x and average FFO interest cover of
2.5x in FY17-FY20. These conservatively assume that development
capex for the recently acquired windfarms (64MW) and those already
in development (31MW) will be financed on balance sheet.

SMP Continued to Decline

The single market price (SMP) continued its decline in 2015 and in
1H16. In 1Q16 the average SMP reached a new low just 38 EUR/MWh
and remained so in 2Q16. This is largely due to falling gas
prices, but also increasing renewables contribution to the single
electricity market. VGIL's portfolio of renewable power purchase
agreements (PPAs) is partially protected from the price risk.
While PPAs in Northern Ireland carry exposure to SMP, most PPAs in
the Republic of Ireland are protected by the regulatory REFIT
price.

DERIVATION SUMMARY

VGIL's business profile benefits from a material contribution of
regulated and quasi-regulated earnings. The company is well-
positioned versus other pure generation and supply businesses;
however, it is somewhat weaker than European integrated utilities
due to the lack of exposure to the regulated network business.

VGIL has a highly leveraged financial profile, with an expected
four-year average FFO adjusted net leverage of 4.6x, which is
slightly above peers and interest cover significantly below peers,
at 2.5x. For comparison, Fitch forecasts average leverage and
interest cover for Infinis plc (BB-/Negative) of 4.2x and 3.2x and
for Electricity Supply Board plc (BBB+/Stable) of 4.4x and 4.7x,
respectively.

KEY ASSUMPTIONS

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

-- Near-zero utilisation for Huntstown 1 and around 15%
    utilisation for Huntstown 2;

-- 50% reduction in capacity payments with the introduction of
    I-SEM;

-- Reduction in capacity revenue partially offset by an increase
    in ancillary service revenue;

-- Gradually declining margins in the currently regulated Power
    Northern Ireland business;

-- Renewable PPAs segment growth due to new own renewables coming
    on stream;

-- Gradual market share gain of the new retail supply business in
    the Republic of Ireland;

-- GBP/EUR exchange rate of 1.1 for FY17-FY20;

-- FY17-FY20 capex consisting of 70% investments in renewable
    assets outside the restricted group and 30% investments in the
    businesses within the restricted group;

-- Dividends from the renewable portfolio to the restricted group
    reaching GBP10m by FY20

-- Dividend pay-out of 50% of consolidated net income in FY17-
    FY20 (maximum allowed by the senior secured bond
    documentation, given that the leverage is above 3.5x).

RATING SENSITIVITIES

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

-- An upgrade is unlikely in the near term. In the longer term
    Fitch could consider a positive rating action should FFO
    adjusted net leverage decrease below 4x on a sustained basis
    and FFO interest cover trend towards 3x.

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

-- Sizeable debt-funded expansion or deterioration in operating
    performance, resulting in FFO adjusted net leverage above 5x
    and FFO interest cover below 2x on a sustained basis.

-- A significant reduction of the proportion of regulated and
    quasi-regulated earnings, in particular due to a change of the
    market design, which could lead to the reassessment of a
    maximum debt capacity commensurate with the current rating
    level.

LIQUIDITY

Adequate Liquidity

Liquidity is sound with unrestricted cash and short-term deposits
of GBP67.8 million and a fully undrawn revolving credit facility
of GBP100 million as at 31 March 2016. Fitch projects negative FCF
of GBP19 million in FY17. VGIL's revolving credit facility matures
in 2019 and its senior secured bond matures in 2020.


* DBRS Confirms Ratings on 34 Classes From 11 UK RMBS Transactions
------------------------------------------------------------------
DBRS Ratings Limited confirmed its ratings on 34 classes of notes
across 11 U.K. residential mortgage-backed securities (RMBS)
transactions as follows:

   -- Aggregator of Loans Backed by Assets 2015-1 Plc Class A
      Notes confirmed at AAA (sf)

   -- Aggregator of Loans Backed by Assets 2015-1 Plc Class B
      Notes confirmed at AA (sf)

   -- Aggregator of Loans Backed by Assets 2015-1 Plc Class C
      Notes confirmed at A (sf)

   -- Aggregator of Loans Backed by Assets 2015-1 Plc Class D
      Notes confirmed at BBB (low) (sf)

   -- Aggregator of Loans Backed by Assets 2015-1 Plc Class E
      Notes confirmed at B (sf)

   -- Cape Funding No. 1 Plc Class A1P confirmed at AAA (sf)

   -- Celeste Mortgage Funding 2015-1 PLC Class A Notes confirmed
      at AAA (sf)

   -- Celeste Mortgage Funding 2015-1 PLC Class B Notes confirmed
      at AA (sf)

   -- Celeste Mortgage Funding 2015-1 PLC Class C Notes confirmed
      at A (sf)

   -- Celeste Mortgage Funding 2015-1 PLC Class D Notes confirmed
      at BBB (sf)

   -- Celeste Mortgage Funding 2015-1 PLC Class E Notes confirmed
      at BB (sf)

   -- Celeste Mortgage Funding 2015-1 PLC Class F Notes confirmed
      at B (sf)

   -- Chestnut Financing Plc Class A Notes confirmed at AAA (sf)

   -- Gemgarto 2012-1 Plc Class A1 Variable Rate Notes confirmed
      at AAA (sf)

   -- Moorgate Funding 2014-1 Plc Class A1 Notes confirmed at AAA
      (sf)

   -- Moorgate Funding 2014-1 Plc Class B1 Notes confirmed at AA
      (sf)

   -- Moorgate Funding 2014-1 Plc Class C1 Notes confirmed at A
      (low) (sf)

   -- Moorgate Funding 2014-1 Plc Class D1 Notes confirmed at BBB
      (low) (sf)

   -- Moorgate Funding 2014-1 Plc Class E1 Notes confirmed at B
      (sf)

   -- Mortar No. 1 Limited Senior Note Issuance Facility confirmed
      at AA (sf)

   -- Newstone Mortgage Securities No. 1 Plc Class A Notes
      confirmed at AAA (sf)

   -- Rochester Financing No.2 Plc Class A confirmed at AAA (sf)

   -- Rochester Financing No.2 Plc Class B confirmed at AA (sf)

   -- Rochester Financing No.2 Plc Class C confirmed at A (sf)

   -- Rochester Financing No.2 Plc Class D confirmed at BBB (sf)

   -- Rochester Financing No. 2 Plc Class E confirmed at BB (high)
      (sf)

   -- Rochester Financing No. 2 Plc Class F confirmed at BB (low)
      (sf)

   -- Thrones 2013-1 Plc Class A Notes confirmed at AAA (sf)

   -- Thrones 2014-1 Plc Class A Notes confirmed at AAA (sf)

   -- Thrones 2014-1 Plc Class B Notes confirmed at AA (sf)

   -- Thrones 2014-1 Plc Class C Notes confirmed at A (sf)

   -- Thrones 2014-1 Plc Class D Notes confirmed at BBB (sf)

   -- Thrones 2014-1 Plc Class E Notes confirmed at BB (sf)

   -- Thrones 2014-1 Plc Class F Notes confirmed at B (sf)

The rating actions are the results of a full review of each
transaction following publication of DBRS's "European RMBS
Insight: U.K. Addendum" (the U.K. Addendum or Addendum) on
November 2, 2016. The Addendum follows the publication of the
"European RMBS Insight Methodology" (the Methodology) on
May 17, 2016. The Methodology introduced a new proprietary default
model (the European RMBS Insight Model or the Model) that
forecasts the expected defaults and losses of portfolios of
European residential mortgages. The Model combines a loan scoring
approach and dynamic delinquency migration matrices to calculate
loan-level defaults and losses. The loan scoring models and
dynamic delinquency migration matrices are developed using
jurisdictional-specific data on loans, borrowers and collateral
types. In addition, the European RMBS Insight Model uses a home
price model to generate market value decline rates (MVDs).

DBRS currently rates 35 tranches from 12 U.K. RMBS transactions
that are now analysed using the new methodology and introduction
of the European RMBS Insight Model. Charles Street Conduit Asset
Backed Securitisation 1 Limited's Senior Variable Funding Notes
are currently being reviewed, and appropriated rating action will
follow. Another two transactions that fell under the scope of the
Addendum -- Neptune Unsecured Warehouse 1 Limited, Senior
Facility, and Neptune Unsecured Warehouse 2 Limited, Facility A
and Facility B -- had their ratings discontinued on 19 December
2016, following the repayment in full of the rated debt on 15
December 2016.

The U.K. Addendum is the second jurisdictional addendum published
for the Methodology. Analysis of U.K. residential mortgages per
the Addendum includes indexation of the underlying property values
for the determination of both frequency of default and severity of
losses. The U.K. Addendum details the U.K. Mortgage Scoring Model
(U.K. MSM), which was constructed using a logistic regression with
27 parameters from 14 variables determined to assess the relative
credit risk of U.K. residential mortgages. The U.K. MSM includes
variables to assess the relative risk of the three primary
mortgage types observed in the U.K. market: prime, buy-to-let and
non-conforming.

In addition, 12 risk segments were estimated based on scoring of
the universe of eligible loans (per defined DBRS criteria) used to
construct the U.K. MSM, with a delinquency migration matrix
estimated for each risk segment based on the observed roll rates.
Rating scenario MVDs are determined for each of the 12 regions of
the U.K. (and the national level) using the non-seasonally
adjusted Nationwide House Price Index to calculate losses.

Along with the material changes introduced by the Methodology, all
the rating actions are based on the following analytical
considerations:

   -- Portfolio performance, in terms of delinquencies and
      defaults.

   -- The default, recovery and loss assumptions on the remaining
      collateral pool.

   -- Current credit enhancement (CE) available to the notes to
      cover the expected losses at each tranche's respective
      rating levels.

Each portfolio was analysed using the European RMBS Insight Model.
Cash flow stresses were undertaken on each class of notes to test
the ability of the transaction to pay principal and interest
consistently with the terms and conditions of the notes and the
assigned ratings, given the assumptions in terms of frequency of
defaults and severity of losses in a given rating scenario.

Notes: All figures are in British pounds unless otherwise noted.

The principal methodologies applicable are European RMBS Insight
Methodology, European RMBS Insight: U.K. Addendum and Master
European Structured Finance Surveillance Methodology.

The rating confirmed on the Celeste Mortgage Funding 2015-1 PLC
Class F Notes materially deviates from the higher ratings implied
by the quantitative model. DBRS considers a material deviation to
be a rating differential of three or more notches between the
assigned rating and the rating implied by a quantitative model
that is a substantial component of a rating methodology; in this
case, the rating also reflects the sensitivity of the rating to
changes in probability of default (PD) or loss given default (LGD)
assumptions, interest rate stresses and timing of defaults.

Other methodologies referenced in these transactions are listed at
the end of this press release.

A full text copy of the ratings is available free at:


                    https://is.gd/cJr6Sv



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


HALK BANK: S&P Affirms 'B/B' Counterparty Credit Ratings
--------------------------------------------------------
S&P Global Ratings said that it had affirmed its 'B/B' long- and
short-term counterparty credit ratings on Uzbekistan-based Halk
Bank.  At the same time, S&P also affirmed its 'B-/C' long- and
short-term counterparty credit ratings on Uzbekistan-based
Turkiston Bank.

The outlook on both banks is stable.

Since the decline in raw material prices in 2014-2015 and
recession in economies of some of Uzbekistan's major trade
partners, such as Russia, external pressure has remained
considerable for Uzbekistan's economy.  Along with declining
inflows and remittances, S&P anticipates Uzbekistan's current
account will weaken and stay marginally above zero in 2016 and
2017.  S&P believes that this increased external pressure, the
still rapid expansion of credit to the nonfinancial sector of at
least 20%-25%, and the gradually slowing economy will result in
higher economic imbalances.  S&P consequently revised down its
economic risk score under our Banking Industry Country Risk
Assessment (BICRA) to '8' from '7' and reclassified Uzbekistan
into the group of countries with '9' BICRA scores.  Other
countries we classify in group '9' are Azerbaijan, Argentina,
Cambodia, Kenya, Lebanon, Tunisia, and Vietnam.

S&P believes that the change in economic risk will affect the
capital adequacy of most Uzbek banks by no more than 70 basis
points and will not lead to a revision of S&P's view of their
capital and earnings.  Two banks, however, are more affected by
this change: Halk Bank and Turkiston Bank.

HALK BANK (B/Stable/B)

Halk Bank's financial profile will be resilient to increasing
economic risks over the next 12-18 months, in S&P's view.
However, under S&P's base-case scenario, it thinks that the bank
will remain reliant on the government's recapitalization program
to continue its operations while meeting all capital adequacy
requirements (12.8% as of Nov. 1, 2016, versus the 11.5%
regulatory minimum).  S&P now projects its risk-adjusted capital
(RAC) ratio for Halk Bank (before adjustments for concentration
and diversification) will remain at 5.0%-5.5% over the next two
years.  S&P's updated forecast incorporates capital support
totaling Uzbekistani sum (UZS) 200 billion (about US$60 million),
out of which an additional UZS115 billion will be approved in
January 2017 that S&P did not previously incorporate in its
forecast.  S&P also notes that the bank's management is committed
to building additional capital buffers by improving operating
efficiency and moderately increasing lending volumes, which S&P
sees reflected in its gradually improving net interest margin.

                              OUTLOOK

The stable outlook on Halk Bank reflects S&P's view that its state
ownership and ongoing government support will prove sufficient to
preserve its creditworthiness over the next 12 months.

"We could lower the ratings over the next 12-18 months if,
contrary to our expectations, we observed that capital injections
from the government were delayed or totaled less than we currently
incorporate in our forecast.  A negative rating action could also
be triggered by the bank's implementation of a more aggressive
capital management strategy, with higher-than-expected growth of
risk-weighted assets that doesn't foster the growth of the capital
base and reduces capital buffers below sustainable levels," S&P
said.

S&P sees the potential for an upgrade of Halk Bank as limited over
the next 12-18 months, since that would require substantial
strengthening of its loss-absorption capacity through stronger
bottom-line earnings.  A positive rating action would also be
contingent on more conservative capital management that ensured
regulatory capital ratios stayed sustainably above the minimum
requirement by more than 100 basis points.

TURKISTON BANK (B-/Stable/C)

While the deteriorating operating environment significantly
impairs Turkiston Bank's capitalization under S&P's definition
(due to the rise in risk-weights under our RAC calculation), S&P
views the bank as able to withstand mounting pressure and continue
its business operations over the next 12-18 months.  S&P has
revised its capital and earnings assessment for Turkiston Bank to
adequate from strong and expect the RAC ratio to be 7.5%-9% over
the next 12-18 months.  Despite S&P's revised capital and earnings
assessment, it affirmed the ratings, as S&P believes that
Turkiston Bank's creditworthiness does not meet its criteria for
assigning a 'CCC' rating.  In particular, Turkiston Bank
demonstrates clear signs of business recovery since the regulator
authorized a foreign currency license in the first half of 2016.

"We believe that Turkiston Bank strengthened the ties with its
customers in 2016 and managed to broaden and diversify its
funding.  During the first 10 months of 2016, the stable deposit
base (time deposits and funds blocked for conversion) increased by
50%.  This growth is approximately 3x the growth of the stable
deposit base in 2015, when the bank was operating without a
foreign currency license.  Additionally, Turkiston Bank managed to
markedly improve the stability of its funding base, and, contrary
to the beginning of the year, the majority of accounts are now
primary, which tend to be less confidence-sensitive than secondary
accounts.  Finally, the larger amount of clients with primary
accounts has contributed to the greater amount of net fee and
commission income, which we expect to have doubled in 2016
compared with 2015 results,". S&P said

                             OUTLOOK

The stable outlook on Turkiston Bank reflects S&P's view that,
over the next 12-18 months, the bank will be able to cope with the
challenging operating environment and retain adequate capital and
liquidity comparable with that of peers.

S&P could consider a negative rating action if:

   -- S&P observed poor liquidity and asset and liability
      management--possibly exacerbating risks connected with
      potential volatility of the bank's funding base,
      particularly regarding the amount and stability of customer
      deposits--and deterioration of the franchise leading to
      significant weakening of liquidity and funding metrics to
      levels lower than peers'; or

   -- The bank's capitalization deteriorates due to higher-than-
      expected credit losses or growth of assets with the
      projected RAC ratio decreasing to below 7%.

S&P believes that a positive rating action is remote at this
stage.

RATINGS LIST

Ratings Affirmed

Halk Bank
Counterparty Credit Rating             B/Stable/B

Turkiston Bank
Counterparty Credit Rating             B-/Stable/C



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


* BOOK REVIEW: AS WE FORGIVE OUR DEBTORS: Bankruptcy and Consumer
-----------------------------------------------------------------
Authors: Teresa A. Sullivan, Elizabeth Warren,
& Jay Westbrook
Publisher: Beard Books
Softcover: 370 Pages
List Price: $34.95
Review by: Susan Pannell

Order your personal copy today at
http://www.beardbooks.com/beardbooks/as_we_forgive_our_debtors.htm
l

So you think you know the profile of the average consumer
debtor: either deadbeat slouched on a sagging sofa with a threeday
growth on his chin or a crafty lower-middle class type
opting for bankruptcy to avoid both poverty and responsible debt
repayment.

Except that it might be a single or divorced female who's the
one most likely to file for personal bankruptcy protection, and
her petition might be the last stage of a continuum of crises
that began with her job loss or divorce. Moreover, the dilemma
might be attributable in part to consumer credit industry that
has increased its profitability by relaxing its standards and
extending credit to almost anyone who can scribble his or her
name on an application.

Such are among the unexpected findings in this painstaking study
of 2,400 bankruptcy filings in Illinois, Pennsylvania, and Texas
during the seven-year period from 1981 to 1987. Rather than
relying on case counts or gross data collected for a court's
administrative records, as has been done elsewhere, the authors
use data contained in the actual petitions. In so doing, they
offer a unique window into debtors' lives.

The authors conclude that people who file for bankruptcy are, as
a rule, neither impoverished families nor wily manipulators of
the system. Instead, debtors are a cross-section of America. If
one demographic segment can be isolated as particularly debtprone,
it would be women householders, whom the authors found
often live on the edge of financial disaster. Very few debtors
(3.7 percent in the study) were repeat filers who might be
viewed as abusing the system, and most (70 percent in the study)
of Chapter 13 cases fail and become Chapter 7s. Accordingly, the
authors conclude that the economic model of behavior -- which
assumes a petitioner is a "calculating maximizer" in his in his
decision to seek bankruptcy protection and his selection of
chapter to file under, a profile routinely used to justify
changes in the law -- is at variance with the actual debtor
profile derived from this study.

A few stereotypes about debtors are, however, borne out. It is
less than surprising to learn, for example, that most debtors
are simply not as well-off as the average American or that while
bankrupt's mortgage debts are about average, their consumer
debts are off the charts. Petitioners seem particularly
susceptible to the siren song of credit card companies. In the
study sample, creditors were found to have made between 27
percent and 36 percent of their loans to debtors with incomes
below $12,500 (although the loans might have been made before
the debtors' income dropped so low). Of course, the vigor with
which consumer credit lenders pursue their goal of maximizing
profits has a corresponding impact on the number of bankruptcy
filings.

The book won the ABA's 1990 Silver Gavel Award. A special 1999
update by the authors is included exclusively in the Beard Book
reprint edition.


                            *********

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

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

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


                            *********


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

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

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

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

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

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


                 * * * End of Transmission * * *