TCREUR_Public/161227.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

           Tuesday, December 27, 2016, Vol. 17, No. 256


                            Headlines


F R A N C E

OBERTHUR TECHNOLOGIES: Fitch Rates Sr. Secured Facilities 'B+'
VALLOUREC: S&P Affirms 'B+' Issue Ratings on Unsecured Notes


G E R M A N Y

* GERMANY: Nearly 600 Ships Have Been Sold Due to Insolvencies


G R E E C E

GREECE: Short-Term Debt Relief Measures Can Proceed
SEANERGY MARITIME: Closes Sale of 1.3M Shares & Warrants


H U N G A R Y

SKILL PENZUGYI: MNB Withdraws License, Orders Liquidation


I R E L A N D

ALME LOAN II: Fitch Issues Correction to Dec. 2 Rating Release
AVOCA CAPITAL X: Fitch Assigns 'B-sf' Rating to Class F-R Notes
HALCYON LOAN: Moody's Assigns B2 Rating to Class F Notes
PERMANENT TSB: Moody's Assigns Caa1 Long-Term Issuer Rating


I T A L Y

DIAPHORA 3: Jan. 17 Calcinato Property Bid Deadline Set
DIAPHORA 3: Jan. 19 Cento Vetrine Property Bid Deadline Set
GENERAL SMONTAGGI: Enemalta to Award EUR2MM Delimara Contract


K A Z A K H S T A N

KAZKOMMERTSBANK JSC: Kazakhstan Gov't. Provides Emergency Loan


L A T V I A

EXPOBANK AS: Moody's Affirms B1 LT Deposit Rating, Outlook Neg.


L U X E M B O U R G

ELEX ALPHA: Moody's Lowers Class E Notes Rating to Caa1
INTERNATIONAL AUTOMOTIVE: Shenda Sale No Impact on Moody's B2 CFR


N E T H E R L A N D S

ACCUNIA EUROPEAN CLO I: S&P Affirms BB Rating to Class E Notes
CLONDALKIN INDUSTRIES: Moody's Withdraws B2 CFR on Debt Repayment
GOLDENTREE CREDIT 2013-1: S&P Affirms BB Rating on Class E Notes
LEOPARD CLO III: Moody's Cuts Cl. E-1 Notes Rating to Ca(sf)
STRONG BV 2016: Moody's Rates EUR6.5MM Class C Notes 'Ba1'


R U S S I A

BALTINVESTBANK: Moody's Hikes LT Deposit Ratings to Caa1
URAL FEDERAL: Fitch Withdraws 'BB' LT FC Issuer Default Ratings
VOZROZHDENIE BANK: Moody's Affirms Deposit Ratings at B1


S P A I N

BANKINTER 3 FTPYME: S&P Raises Rating on Class D Notes to CCC+


S W I T Z E R L A N D

UNILABS: S&P Affirms 'CCC+' Rating on PIK Toggle Notes


U N I T E D   K I N G D O M

AQUASCUTUM: YGM to Sell Business for GBP97 Million
ED'S EASY: Boucher Square Store Set to Close Today
INNOVIA GROUP: Moody's Puts B1 CFR on Review for Upgrade
NESS CLOTHING: In Administration, 105 Jobs at Risk
NIELSEN HOLDINGS: Tribune Deal is Credit Negative, Moody's Says

TITAN EUROPE 2006-5: Moody's Affirms Caa2 Rating on Cl. X Notes
WATERSIDE SPORTS: Closes Doors Due to Financial Problems
* UK: Cashflow Problems Affect Nearly 40% Small Businesses


U Z B E K I S T A N

ASIA ALLIANCE: Moody's Hikes LT LC Deposit Ratings to B2
KAFOLAT JSC: Fitch Assigns 'B+' IFS Rating, Outlook Stable


                            *********


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F R A N C E
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OBERTHUR TECHNOLOGIES: Fitch Rates Sr. Secured Facilities 'B+'
--------------------------------------------------------------
Fitch Ratings has assigned Oberthur Technologies Group SAS new
senior secured facilities a final rating of 'B+' with a Recovery
Rating of 'RR3' and withdrawn the ratings on the company's
existing debt.

The rating action assumes that the final documentation for OT's
preferred equity certificates and shareholder loan, which will be
released at completion of Morpho acquisition around 1H17, will
conform to the draft version presented to Fitch and thus will be
excluded from OT's total indebtedness.

KEY RATING DRIVERS

Morpho Strategic Fit

Fitch views the proposed Morpho acquisition as a strong fit with
OT. It will add significant scale and a broader, more rounded
business mix. OT is, in Fitch's view, already well-positioned in
the financial services (secure payment) and telecoms markets with
a developed but much lower weighting in identity solutions
(including passports, driving licenses, ID cards).

Morpho will more than double the size of the company -- both in
terms of sales and EBITDA. Its revenue mix is strongly weighted
towards identity and security (border control, surveillance,
biometric database management), which together account for more
than 70% of sales, and is therefore highly complementary to OT's
existing businesses. Both companies have a strong growth record.
Margin performance at OT suggests that management has the ability
to deliver cost efficiencies and position revenues in higher-
value segments.

Enhanced Business Profile

OT's underlying business profile supports Fitch positive view of
management's strategy and execution. Strengths are particularly
evident in the payments business, where the company benefits from
entrenched, high-quality and wide-ranging customer relationships,
a consistent card replacement cycle and leadership in evolving
technologies.

The Morpho transaction adds scale, synergies, growth potential as
well as a more balanced business mix. A record of delivering cost
savings suggests synergies are likely to be delivered over time,
hence strengthening the rating potential over the medium term.

Leverage Constrains Rating

Initial leverage and a historically weak visibility of cash flow
performance prevent a higher rating. Deleveraging potential
following the Morpho purchase, expected sometime in 2017, will
depend on integrating the acquired company. Fitch principal
upgrade guideline of 4.5x funds from operations (FFO) net
leverage is not forecast to be met until 2019, which is beyond
the rating outlook horizon.

Fitch estimates the size and structure of the acquisition adds
roughly 1.2x net debt-to-EBITDA to the capital structure,
excluding synergies. As part of the transaction, EUR195m of
vendor loans, currently treated as hybrid equity, are being
repaid.

Fitch forecasts that 2017 pro-forma FFO net leverage of 5.6x is
expected to lead to an extended period of higher leverage. This,
along with weak free cash flow (FCF) visibility, places the IDR
at 'B'.

Strong Competitive Position

OT has delivered strong revenue and margin expansion, reflecting
its market and competitive technology positions. Margin
performance amid current soft revenue conditions supports Fitch's
view that technology risk is being managed.

The global payments sector shows established upgrade cycles with
OT at the forefront of evolving technologies. The company's OT
Motioncode is an example of sophisticated solutions for inherent
security challenges in the sector. Morpho is likely to provide
revenue synergies in addition to cost savings.

Treatment of Non-Recurring Items

The consistency of non-recurring items in OT's cash flow leads us
to take a cautious view on them and Fitch partially treats these
items as non-operational but recurring. Items such as refinancing
and IPO preparation are treated as one-offs. Operational
restructuring is more recurring in nature and included within
FFO.

Integration of Morpho is expected to lead to several tens of
million euros of restructuring costs, while the increased size of
the business is likely to lead to synergy opportunities and
related costs. Fitch views non-recurring items on a case-by-case
basis. However, Fitch will include some integration and
restructuring expenses within Fitch cash flow measures. This will
have an impact on the pace at which forecast FFO metrics improve.

Recoveries, Instrument Rating

Fitch applied a bespoke and going concern approach to recoveries
to OT as outlined in Fitch criteria, Recovery Ratings and
Notching Criteria for Non-Financial Corporate Issuers, dated 7
April 2016. The capital structure will be almost entirely
financed with secured debt following the company's refinancing.
Recoveries will therefore fall to secured lenders and the
company's strong technology positions are likely to support a
fairly strong post-distress valuation.

The absence of unsecured debt and the size of the revolving
credit facility, however, limit recoveries to 'RR3'. This implies
recoveries of between 51% and 70%, supporting a one-notch uplift
from the IDR and instrument ratings of 'B+'/'RR3'.

DERIVATION SUMMARY

OT has no immediately obvious, similarly rated peers. Its closest
rival and the market leader is Gemalto. Following the Morpho
transaction, OT will have similar scale and will be strongly
positioned in market and technology leadership relative to
Gemalto. However, margins, including margin dilution from Morpho,
will be lower than its rival and its balance sheet more
leveraged.

Fitch estimates Gemalto had a trailing LTM June 2016 EBITDA
margin of 18.5% and net debt/EBITDA leverage of 0.6x, compared
with OT's standalone LTM September 2016 metrics of 16% and 3.9x,
respectively. Rated European technology peers, such as Nokia and
STMicroelectronics, sit in the high sub-investment grade/low
investment grade range. They have far greater scale, somewhat
higher revenue and margin volatility but stronger cash flows and
no net leverage. For a technology-driven company, OT's leverage
is unusual. Its business position and technology leadership
within its chosen markets are regarded as strong.

KEY ASSUMPTIONS

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

- Mid-single digit growth driven mainly by growing identity and
   security divisions;

- Improving EBITDA margin from about 14% in 2017 to 18% in 2021
   reflecting cost synergy and operational efficiencies as well
   as a positive sales mix;

- Capex average around 6% of sales annually;

- Reversal of working capital trends with a negative outflow of
   about EUR30m from 2017 onward;

- Recurring restructuring costs reflected above FFO of EUR25m.

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

- FFO-net adjusted leverage below 4.5x combined with an FFO
   fixed-charge cover above 2.5x on sustained basis.

- Demonstrated progress in integrating Morpho, ongoing margin
   resilience and a low-to mid-single digit FCF margin.

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

- FFO net-adjusted leverage above 6.5x and FFO fixed-charge
   cover below 2x on a sustained basis.

- A material loss of market share or other evidence of a
   significant erosion of business or technology leadership in
   the company's core operations.

LIQUIDITY

Satisfactory Liquidity

At end-September 2016, OT had cash of EUR64 million and access to
a EUR88 million revolving credit facility, of which EUR38 million
was available. Following close of the new financing, liquidity
primarily will be provided by a new EUR300 million revolving
credit facility due 2022. Debt financing is also structured to
ensure a material cash buffer post acquisition close. Fitch
estimates a cash balance exceeding EUR100 million at end-2017.

FULL LIST OF RATING ACTIONS

Oberthur Technologies Group SAS:

Long Term Issuer Default Rating: unaffected at 'B'; Outlook
Stable

Unsecured notes due 2020: 'CCC+'/'RR6'' withdrawn

EUR2.1 billion equivalent term loan B due 2023: 'B+'/'RR3'
assigned

EUR300 million revolving credit facility due 2022: 'B+'/'RR3'
assigned

Oberthur Technologies SA

Senior secured debt due 2019: 'BB-'/RR2'; withdrawn
EUR2.1 billion equivalent term loan B due 2023: 'B+'/'RR3'
assigned

EUR300 million revolving credit facility due 2022: 'B+'/'RR3'
assigned

Oberthur Technologies of America Corp

Senior secured debt due 2019: 'BB-'/'RR2'; withdrawn

EUR2.1 billion equivalent term loan B due 2023: 'B+'/'RR3'
assigned

EUR300 million revolving credit facility due 2022: 'B+'/'RR3'
assigned

Oberthur Technologies Finance SAS, Oberthur Technologies of
America Corp, and Oberthur Technologies SA

Revolving credit facility due 2018: 'BB-'/'RR2' withdrawn


VALLOUREC: S&P Affirms 'B+' Issue Ratings on Unsecured Notes
------------------------------------------------------------
S&P Global Ratings said that it has reviewed its recovery and
issue-level ratings on Vallourec 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,
revising the recovery ratings to '3' from '4', and affirming the
issue ratings at 'B+'.

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 on issuers of the
affected debt issues.

Key Analytical Factors:

   -- Following the publication of S&P's revised recovery ratings
      criteria on Dec. 7, 2016, S&P reviewed the group's recovery
      and issue-level ratings.  As a result of this review, S&P
      is affirming its 'B+' issue rating on Vallourec's unsecured
      notes, including EUR650 million due 2017, EUR400 million
      due 2019, and EUR500 million due 2024, and revising S&P's
      recovery rating on this debt to '3L' from '4H'.

   -- The change in the recovery rating reflects the exclusion of
      nonmaterial finance leases and pension obligations under
      the new criteria.  S&P also assumes that the company will
      repay its EUR650 million bond in February 2017 when it
      matures and will not refinance it.

   -- Under S&P's hypothetical default scenario, it assumes a
      combination of loss of key customers and a prolonged
      downturn in the industry, leading to lower pricing and
      operational issues.

   -- S&P values Vallourec as a going concern, given its market-
      leading position and diversified product offering.

Simulated default assumptions:
   -- Year of default: 2020
   -- Jurisdiction: France

Simplified recovery waterfall:

   -- Emergence EBITDA: EUR300 million (capital expenditure set
      at 4% of sales, slightly higher than the anchor to reflect
      S&P's expectations of minimum capital expenditure at
      emergence from default.  The cyclicality adjustment is 5%,
      in line with the specific industry subsegment.  No
      operational adjustment was used).

   -- Multiple: 5.5x

   -- Gross recovery value: EUR1,646 million

   -- Net recovery value for waterfall after admin. expenses
     (5%): EUR1,564 million

   -- Estimated first-lien debt claim: EUR2,748 million*

   -- Recovery range: 50%-70% (lower half)

   -- Recovery rating: 3

*All debt amounts include six months of prepetition interest.



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G E R M A N Y
=============


* GERMANY: Nearly 600 Ships Have Been Sold Due to Insolvencies
--------------------------------------------------------------
On December 4, worker Shah Jahan was killed on the spot at Arefin
shipbreaking yard in Chittagong, Bangladesh, where German
container ship "Viktoria Wulff" is currently being dismantled on
the beach. The 35-year old man, who was made to work without any
safety measures, was struck on the head by a heavy iron piece,
according to NGO Shipbuilding Platform.

German ship owner Wulff went bankrupt in August and the
insolvency administrator is currently selling off the company's
remaining vessels. The "Viktoria Wulff" became the youngest
container ship to be sold for demolition at an age of only 10
years without a previous accident.

"The story of the 'Viktoria Wulff' is characteristic for the
failed business practices of German KG ship owners as well as
ship funds. Nearly 600 ships have been sold due to insolvencies
and financial problems since 2008, many of which ended up on the
South Asian beaches. The bill for the ship owners' and investors'
greed for profit is paid by workers and the environment in
destinations like Bangladesh, where ships end up without any
consideration of the human and environmental costs", says
Patrizia Heidegger, Executive Director of the NGO Shipbreaking
Platform. "It is a scandal that German liquidators, who are
appointed by the courts, sell end-of-life ships to substandard
breaking yards risking peoples' lives through deals that are in
clear breach of international and even domestic Bangladeshi law
just to sort out the books for German ship owners".

This is not the first case of fatal accidents in the shipbreaking
yards of South Asia that the Platform was able to link to
bankruptcies of German ship owners. Last year, the Platform,
together with broadcaster NDR, revealed the case of the "King
Justus" which was sold after the insolvency of Konig & Cie. A
worker was killed breaking the ship on the beaches of Alang,
India. At the time, the Environment Minister of North German
state Lower Saxony also criticised NordLB, a bank with a major
shipping portfolio overseen by the State Government, for its
involvement in the financing of the ship.

In Bangladesh, fatal accidents in the shipbreaking industry
remain very frequent, a situation that is widely known - but
largely ignored - by the shipping industry, insolvency
administrators selling off unwanted ships, as well as by the
brokers and cash buyers setting up the end-of-life deals. German
owners have had at least 32 old ships ramped up on the beaches of
Bangladesh this year. With 83 end-of-life vessels sold to
beaching yards in South Asia in 2016, German ship owners top the
list of global dumpers together with Greek shipping lines.
Several end-of-life sales were in direct breach of the European
Waste Shipment Regulation that bans the export of hazardous waste
to developing countries. The "Viktoria Wulff" was most probably
traded through an anonymous cash buyer using the end-of-life flag
St Kitts and Nevis before it was beached in Chittagong.

"Only in 2016, at least 19 shipbreaking workers were killed and
another 11 severely injured in the Bangladesh yards. The accident
rate remains shockingly high and is not coming down, despite the
promises of the yard owners and cash buyers", says Heidegger.
"The shipbreaking yards have to be moved away from the muddy
beaches to clean and safe ship recycling facilities using quays
and docks where cranes can be operated to safely move cut steel
sections. Otherwise, the death count of beaching will not come to
a halt".

In an attempt to hide the accident, the yard management kept the
body of Shah Jahan inside the premises, but fellow workers and
locals rushed to the site and started demonstrating. The body was
consequently sent to the morgue of the Chittagong Medical College
Hospital. The following day, the worker was quickly buried
without a post mortem. Platform member organisations in
Bangladesh attended the funeral and now seek to support the
victim's relatives. The family and the yard owners have settled
for a one-off payment and a monthly allowance to help them cover
their living costs. However, money will not be able to replace
Shah Jahan who leaves behind a wife and a young child.



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G R E E C E
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GREECE: Short-Term Debt Relief Measures Can Proceed
---------------------------------------------------
Isabelle Fraser at The Daily Telegraph reports that measures to
ease Greece's debt obligations will resume after being frozen
earlier in the month over Athens' decision to pay a year-end
bonus to pensioners.

President of the Eurogroup Jeroen Dijsselbloem said the country's
creditors had agreed to go ahead with planned short-term debt
relief measures, The Daily Telegraph relates.  It came after he
received a letter from the Greek finance minister, Euclid
Tsakalotos, in which he said Greece would honor its bailout
commitments, The Daily Telegraph notes.

The relief was called off by the euro zone bailout fund European
Stability Mechanism after the Greek government said it would pay
a Christmas bonus to some pensioners and keep lower value added
tax on some islands, The Daily Telegraph recounts.

The Greek Prime Minister Alexis Tsipras announced that his
government would provide a special one-off benefit payment to
pensioners earning below EUR800, The Daily Telegraph relays.  The
new spending measure, which was made without consulting his euro
zone lenders, will set the Greek Treasury back EUR617 million,
The Daily Telegraph discloses.

The measures worried the country's creditors, who have set
targets for Greece to reach a primary budget surplus of 3.5% in
2018, The Daily Telegraph states.  The lenders decided to suspend
a short-term debt relief deal for Athens, The Daily Telegraph
recounts.

Mr. Dijsselbloem, as cited by The Daily Telegraph, said: "I'm
happy to conclude that we have cleared the way . . . to go ahead
with the decision-making procedures for the short term debt
measures, which will be conducted in January."


SEANERGY MARITIME: Closes Sale of 1.3M Shares & Warrants
--------------------------------------------------------
Seanergy Maritime Holdings Corp. completed on Dec. 21, 2016, the
sale of an additional 1,300,000 of its common shares and class A
warrants to purchase 1,500,000 common shares of the Company
pursuant to the exercise of the over-allotment option granted to
the underwriters in the Company's public offering that closed on
Dec. 13, 2016.  In connection with the sale of Additional
Securities, the Company issued the representative of the
underwriters a warrant to purchase 65,000 of its common shares.

                       About Seanergy

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

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

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

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



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H U N G A R Y
=============


SKILL PENZUGYI: MNB Withdraws License, Orders Liquidation
---------------------------------------------------------
Budapest Business Journal reports that the National Bank of
Hungary (MNB) has withdrawn the license of financial service
provider SKILL Penzugyi es Tanacsado Zrt.'s (SKILL Zrt.) and
ordered it to apply for voluntary liquidation as the financial
overseer suspects shortcomings at the company.

The central bank said in an announcement that it believes SKILL
does not fulfill several basic requirements to hold a license,
and that its operation seriously damages the interest of clients,
BBJ relays citing Hungarian news agency MTI.

According to BBJ, the MNB added that, following an inquiry, it
found that SKILL has also failed to perform its obligations
related to FX debt conversions and settlements.



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I R E L A N D
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ALME LOAN II: Fitch Issues Correction to Dec. 2 Rating Release
--------------------------------------------------------------
Fitch Ratings issued a correction to its Dec. 2, 2016 rating
release.

This announcement replaces the version published on Dec. 2, 2016
to clarify that no appendix in regards to Representations and
warranties was prepared in relation to this transaction. It also
corrects the downgrade notches under Rating Sensitivities.

Fitch Ratings has assigned expected ratings to ALME Loan Funding
II DAC refinancing notes, as follows:

EUR1.5m Class X: 'AAA(EXP)sf'; Outlook Stable
EUR224m Class A: 'AAA(EXP)sf'; Outlook Stable
EUR50.7m Class B: 'AA(EXP)sf'; Outlook Stable
EUR20.4m Class C: 'A(EXP)sf'; Outlook Stable
EUR19.2m Class D: 'BBB(EXP)sf'; Outlook Stable
EUR21.6m Class E: 'BB(EXP)sf'; Outlook Stable
EUR45m participating term certificates: not rated

The assignment of final ratings is contingent on the receipt of
final documentation conforming to information already received.

ALME Loan Funding II D.A.C. is a cash flow collateralised loan
obligation (CLO). Net proceeds from the issuance of the notes
will be used to refinance the current outstanding notes of
EUR382.4 million. The portfolio of assets is managed by Apollo
Management International LLP.

KEY RATING DRIVERS

'B' Portfolio Credit Quality

Fitch expects the average credit quality of obligors to be in the
'B' category. Fitch has public ratings or credit opinions on all
obligors in the identified portfolio. The weighted average rating
factor (WARF) of the identified portfolio is 31.9, below the
maximum covenanted WARF of 33.0.

High Recovery Expectations

At least 90% of the portfolio will comprise senior secured
obligations. Recovery prospects for these assets are typically
more favourable than for second-lien, unsecured and mezzanine
assets. The weighted average recovery rate (WARR) of the
identified portfolio is 68.8%, above the minimum covenanted WARR
of 67%.

Diversified Asset Portfolio

The issuer introduced during the refinancing process a covenant
that limits the top 10 obligors in the portfolio to 20% of the
portfolio balance. In addition, the maximum Fitch industry
exposure is restricted to 17.5% for the largest industry and 40%
for the top three. This ensures that the asset portfolio will not
be exposed to excessive obligor concentration.

Limited Interest Rate Risk
Unhedged fixed rate assets cannot exceed 7% of the portfolio
while there are no fixed-rate liabilities. The impact of unhedged
interest rate risk was assessed in the cash flow model analysis.

Documentation Amendments

The transaction documents may be amended, subject to rating
agency confirmation or noteholder approval. Where rating agency
confirmation relates to risk factors, Fitch will analyse the
proposed change and may provide a rating action commentary if the
change has a negative impact on the ratings. Such amendments may
delay the repayment of the notes as long as Fitch's analysis
confirms the expected repayment of principal at the legal final
maturity.

If, in the agency's opinion the amendment is risk-neutral from a
rating perspective, Fitch may decline to comment. Noteholders
should be aware that the structure considers a confirmation to be
given if Fitch declines to comment.

RATING SENSITIVITIES

A 25% increase in the obligor default probability could lead to a
downgrade of up to two notches for the rated notes. A 25%
reduction in expected recovery rates could lead to a downgrade of
up to three notches for the rated notes.

TRANSACTION SUMMARY

The issuer has amended the capital structure and extended the
maturity of the notes; it changed the payment frequency of the
notes to quarterly, although a frequency switch mechanism was
introduced. The transaction features a four-year reinvestment
period, which is scheduled to end in 2021.

The structure will no longer have a junior class F notes. On the
other hand EUR1.5 million class X notes ranking pari-passu to the
class A notes will be added. The principal amount is scheduled to
amortise in equal instalments during the first four payment dates
using interest proceeds only, unless there is an over-
collateralisation (OC) test breach. Class X notional is excluded
from the OC tests calculation but a breach of this test will
divert interest and principal proceeds to the repayment of class
X pro-rata with class A notes. It should be noted that Non-
payment of scheduled principal on the class X notes on the
specific dates will not represent an event of default according
to the transaction documents and unpaid principal will be due at
the next payment date.


AVOCA CAPITAL X: Fitch Assigns 'B-sf' Rating to Class F-R Notes
---------------------------------------------------------------
Fitch Ratings has assigned Avoca Capital CLO X DAC refinanced
notes final ratings, as follows:

Class A-R: 'AAAsf'; Outlook Stable
Class B-R: 'AAsf'; Outlook Stable
Class C-R: 'Asf'; Outlook Stable
Class D-R: 'BBBsf'; Outlook Stable
Class E-R: 'BBsf'; Outlook Stable
Class F-R: 'B-sf'; Outlook Stable
Subordinated notes: not rated

The assignment of the final ratings is contingent on the receipt
of final documents conforming to information already reviewed.

Avoca Capital CLO X DAC is a cash flow collateralised loan
obligation (CLO). The transaction closed in 2013 but was not
rated by Fitch at the time. The notes were fully redeemed on 20
December 2016 and on the same date new notes were issued
(refinancing). The proceeds of this issuance were used to redeem
the old notes. The refinanced CLO envisages a further four-year
reinvestment period with a new identified portfolio that will
mainly comprise the assets currently in the existing portfolio,
as modified by sales and purchases made by the manager until the
effective date in March 2017. The portfolio is managed by KKR
Credit Advisors (Ireland).

KEY RATING DRIVERS

Sufficient Credit Enhancement:

Available credit enhancement plus excess spread is sufficient to
protect against portfolio default and recovery rate projections
in the relevant rating stress scenario. For the class D and class
F notes, the cash flow modelling indicates minor shortfalls in a
few scenarios of Fitch's matrix. However, Fitch deem these
immaterial.

'B+'/'B' Portfolio Credit Quality
Fitch assesses the average credit quality of obligors in the
'B+'/'B' range. The agency has public ratings or credit opinions
on all the obligors in the identified portfolio (outstanding
portfolio at the latest payment date excluding identified sales
and unidentified purchases before the effective date). The
weighted average rating factor of the identified portfolio is
31.1.

High Expected Recoveries
At least 90% of the portfolio will comprise senior secured loans
and bonds. The weighted average recovery rate of the identified
portfolio is 70.6%.

Payment Frequency Switch
The notes pay quarterly, while the portfolio assets can be reset
to semi-annual from quarterly or monthly. The transaction has an
interest-smoothing account but no liquidity facility. A liquidity
stress for the non-deferrable class A and B notes, stemming from
a large proportion of assets potentially resetting to semi-annual
in any one quarter, is addressed by switching the payment
frequency of the notes to semi-annual in such a scenario, subject
to certain conditions.

Limited Interest Rate Risk Exposure
Between 0% and 7.5% of the portfolio can be invested in fixed-
rate assets, while all the liabilities pay a floating-rate
coupon. Fitch modelled both 0% and 7.5% fixed-rate buckets and
found that the rated notes can withstand the interest rate
mismatch associated with each scenario.

At closing the issuer purchased an interest rate cap to hedge the
transaction again rising interest rates. The notional of the cap
is EUR19m (representing 6.3% of the target par amount) and the
strike rate is 4%. The cap will expire in January 2023.

Documentation Amendments
The transaction documents may be amended subject to rating agency
confirmation or noteholder approval. Where rating agency
confirmation relates to risk factors, Fitch will analyse the
proposed change and may provide a rating action commentary if the
change has a negative impact on the ratings. Such amendments may
delay the repayment of the notes as long as Fitch's analysis
confirms the expected repayment of principal at the legal final
maturity.

If in the agency's opinion the amendment is risk-neutral from a
rating perspective Fitch may decline to comment. Noteholders
should be aware that the structure considers the confirmation to
be given if Fitch declines to comment.

RATING SENSITIVITIES

A 25% increase in the obligor default probability would lead to a
downgrade of up to two notches for the rated notes. A 25%
reduction in expected recovery rates would lead to a downgrade of
up to two notches for the rated notes.


HALCYON LOAN: Moody's Assigns B2 Rating to Class F Notes
--------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by Halcyon Loan
Advisors European Funding 2016 Designated Activity Company (the
"Issuer"):

  -- EUR188,200,000 Class A-1 Senior Secured Floating Rate Notes
due 2030, Definitive Rating Assigned Aaa (sf)

  -- EUR10,000,000 Class A-2 Senior Secured Fixed Rate Notes due
2030, Definitive Rating Assigned Aaa (sf)

  -- EUR39,000,000 Class B Senior Secured Floating Rate Notes due
2030, Definitive Rating Assigned Aa2 (sf)

  -- EUR19,300,000 Class C Senior Secured Deferrable Floating
Rate Notes due 2030, Definitive Rating Assigned A2 (sf)

  -- EUR15,500,000 Class D Senior Secured Deferrable Floating
Rate Notes due 2030, Definitive Rating Assigned Baa2 (sf)

  -- EUR19,500,000 Class E Senior Secured Deferrable Floating
Rate Notes due 2030, Definitive Rating Assigned Ba2 (sf)

  -- EUR10,000,000 Class F Senior Secured Deferrable Floating
Rate Notes due 2030, Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's definitive rating of the rated notes addresses the
expected loss posed to noteholders by legal final maturity of the
notes in 2030. The definitive ratings reflect the risks due to
defaults on the underlying portfolio of loans given the
characteristics and eligibility criteria of the constituent
assets, the relevant portfolio tests and covenants as well as the
transaction's capital and legal structure. Furthermore, Moody's
is of the opinion that the collateral manager, Halcyon Loan
Advisors (UK) LLP ("Halcyon"), has sufficient experience and
operational capacity and is capable of managing this CLO.

Halcyon Loan Advisors European Funding 2016 Designated Activity
Company is a managed cash flow CLO. At least 90% of the portfolio
must consist of senior secured obligations and up to 10% of the
portfolio may consist of senior unsecured obligations, second-
lien loans, mezzanine obligations and high yield bonds. The
portfolio is expected to be 60% ramped up as of the closing date
and to be comprised predominantly of corporate loans to obligors
domiciled in Western Europe. The remainder of the portfolio will
be acquired during the six month ramp-up period in compliance
with the portfolio guidelines.

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

In addition to the seven classes of notes rated by Moody's, the
Issuer issued EUR36,500,000 of subordinated notes which will not
be rated.

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

Factors that would lead to an upgrade or downgrade of the
ratings:

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

Loss and Cash Flow Analysis:

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

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

Par Amount: EUR 325,000,000

Diversity Score: 36

Weighted Average Rating Factor (WARF): 2775

Weighted Average Spread (WAS): 4.05%

Weighted Average Recovery Rate (WARR): 42.80%

Weighted Average Life (WAL): 8 years.

As part of the base case, Moody's has addressed the potential
exposure to obligors domiciled in countries with local currency
country risk ceiling (LCC) of A1 or below. As per the portfolio
constraints, exposures to countries with local currency country
risk ceiling rating of A1 or below cannot exceed 10%, with
exposures to countries local currency country risk ceiling rating
of Baa1 to Baa3 further limited to 5%. Following the effective
date, and given these portfolio constraints and the current
sovereign ratings of eligible countries, the total exposure to
countries with a LCC of A1 or below may not exceed 10% of the
total portfolio. As a worst case scenario, a maximum 5% of the
pool would be domiciled in countries with LCC of A3 and 5% in
countries with LCC of Baa3. The remainder of the pool will be
domiciled in countries which currently have a LCC of Aa3 and
above. Given this portfolio composition, the model was run with
different target par amounts depending on the target rating of
each class of notes as further described in the methodology. The
portfolio haircuts are a function of the exposure size to
countries with a LCC of A1 or below and the target ratings of the
rated notes and amount to 0.75% for the Class A notes, 0.50% for
the Class B notes, 0.375% for the Class C notes and 0% for
Classes D, E and F.

Stress Scenarios:

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

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

Ratings Impact in Rating Notches:

Class A-1 Senior Secured Floating Rate Notes: 0

Class A-2 Senior Secured Fixed Rate Notes: 0

Class B Senior Secured Floating Rate Notes: -2

Class C Senior Secured Deferrable Floating Rate Notes: -2

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -3

Class F Senior Secured Deferrable Floating Rate Notes: 0

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

Ratings Impact in Rating Notches:

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

Class A-2 Senior Secured Fixed Rate Notes: -1

Class B Senior Secured Floating Rate Notes: -3

Class C Senior Secured Deferrable Floating Rate Notes: -4

Class D Senior Secured Deferrable Floating Rate Notes: -2

Class E Senior Secured Deferrable Floating Rate Notes: -3

Class F Senior Secured Deferrable Floating Rate Notes: -1


PERMANENT TSB: Moody's Assigns Caa1 Long-Term Issuer Rating
-----------------------------------------------------------
Moody's Investors Service has assigned a Caa1 long-term issuer
rating to Permanent TSB Group Holdings plc, the holding company
of Permanent tsb p.l.c. (PTSB, rated LT Bank Deposits Ba3/ Senior
Unsecured B1 positive, BCA b3). The rating is based on the
consolidated Loss-Given-Failure (LGF) analysis with PTSBGH's main
operating company, PTSB.

The outlook on the rating is positive, in line with the outlook
on PTSB's long-term bank deposit and senior debt ratings.

RATINGS RATIONALE

According to Moody's banking methodology, in countries subject to
EU's Bank Recovery and Resolution Directive (BRRD), such as
Ireland, which Moody's consider an Operational Resolution Regime,
it is assumed that if a holding company forms part of the same
resolution as the bank, like in the case of PTSB, holding company
senior obligations benefit from the subordination of bank
subordinated instruments, as well as holding company subordinated
instruments. This is because Ireland's implementation of EU's
BRRD mandates write-down and conversion for bank-issued capital
instruments as the initial source of loss-absorbing capital. With
the exception of senior unsecured from the holding company,
Moody's assume that holding company debt ranks pari passu with
debt of the same class at the operating company level.

Based on the above liability ranking assumptions a Caa1 issuer
rating is assigned to PTSBGH. The Agency assigns a "Low"
government support probability to the issuer rating of PTSBGH,
which does not result in any additional notching from the
preliminary rating assessment of caa1.

WHAT COULD CHANGE THE RATING -- UP/DOWN

A positive change in PTSB's BCA would likely lead to an upgrade
of PTSBGH's issuer rating. The rating could also be upgraded if
either the holding company or its operating subsidiary were to
issue significant amounts of subordinated debt.

A downward movement in PTSB's BCA would likely result in the
downgrade of PTSBGH's issuer rating.



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




DIAPHORA 3: Jan. 17 Calcinato Property Bid Deadline Set
-------------------------------------------------------
Diaphora 3 Fund, in liquidation pursuant to Art. 57 TUF, is
putting up for sale Calcinato (BS), a property unit comprising of
three residential complexes, a building plot, a private road and
parking lots developed as town-planning work, an electrical
substation, and a further area currently covered by natural
vegetation, as described in the appraisal reports dated July 1,
2016 drawn up by Ing. Alberto Marinelli.

Starting price: EUR4,384,215 in addition to applicable tax.

Bid deadline: 12:00 a.m. on January 17, 2017.  Bids are to be
submitted at the office of Notary Marianna Rega in Via Giacomo,
Matteotti 57, Calcinato (BS).

Date of sale: 5:00 p.m. on January 18, 2017, at the office of the
Notary.

Details, procedures and sale regulations are available on
www.liquidagest.it


DIAPHORA 3: Jan. 19 Cento Vetrine Property Bid Deadline Set
-----------------------------------------------------------
Diaphora 3 Fund, in liquidation pursuant to Art. 57 TUF, is
putting up for sale "Cento Vetrine", a commercial property
complex located in the municipality of Mazzanno (BS), Strada
Padana Superiore, consisting of no. 34 stores, no. 19 offices,
no. 7 warehouses, an unroofed area and a basement garage, as
described in the appraisal report dated May 6, 2016 drawn up by
Geom. Roberto Cirelli.

Starting price: EUR4,000,000 in addition to applicable tx.

Bid deadline: 12:00 a.m. on January 19, 2017, bids to be
submitted at the office of Notary Pietro Barziza in Piazza Duomo
17, Desenzano del Garda (BS).

Date of sale: 5:00 p.m. on January 20, 2017, at the office of the
Notary.

Details, procedures and sale regulations are available on
www.liquidagest.it


GENERAL SMONTAGGI: Enemalta to Award EUR2MM Delimara Contract
-------------------------------------------------------------
Ivan Camilleri at The Sunday Times of Malta reports that state
energy company Enemalta is expected to award a EUR2 million
contract for the dismantling of the chimney of the old power
station in Delimara to an Italian company undergoing legal
bankruptcy procedures.

The Sunday Times of Malta is informed that earlier this month,
Enemalta, the political responsibility of Minister Without
Portfolio Konrad Mizzi, published a procurement notice stating
that the tender had been awarded to General Smontaggi Spa, a
company based in Novara, northern Italy.

However, research conducted by this newspaper shows that the
award of this contract goes against the rules indicated in the
conditions of the tender, as the Italian company is in a dire
financial state: last year it started procedures for bankruptcy,
The Sunday Times of Malta discloses.

The tender document's conditions clearly state that the Italian
company should have been disqualified immediately from the
competition, The Sunday Times of Malta notes.

Enemalta, The Sunday Times of Malta says, is obliged to conduct
due diligence on all bidders.  Yet it awarded the EUR2 million
contract to the bankrupt company, The Sunday Times of Malta
states.

According to The Sunday Times of Malta, official documents issued
by the Tribunale di Novara in 2015 and seen by this newspaper
show that General Smontaggi Spa is in "a state of irreversible
insolvency which is not of a temporary nature".  Judicial
Commissioner Daniele Fre is overseeing its winding-down process,
The Sunday Times of Malta discloses.



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


KAZKOMMERTSBANK JSC: Kazakhstan Gov't. Provides Emergency Loan
--------------------------------------------------------------
Nariman Gizitdinov at Bloomberg News reports that Kazakhstan has
extended an emergency loan to the country's biggest bank, the
first step in what could be a rescue that may reach KZT1.5
trillion (US$4.5 billion).

A bailout is among the alternatives under discussion between
officials from Kazkommertsbank and the central bank as Kazakhstan
edges closer to its biggest bank rescue since the global
financial crisis seven years ago led to US$20 billion in debt
restructurings by the country's lenders, Bloomberg discloses.

According to Bloomberg, people familiar with the plans said
Kazkommertsbank has borrowed about KZT400 billion from the
central bank from Dec. 15 to support liquidity.

The people said officials were instructed to stave off the
collapse of the nation's biggest holder of deposits and are
discussing various scenarios for how a bailout might occur,
Bloomberg relates.

"Kazkommertsbank's problems are mounting because of its
structurally loss-making performance," Bloomberg quotes
Roman Kornev, a Moscow-based analyst at Fitch Ratings, as saying
by e-mail.  "Our base-case expectation is that the state will not
provide support to Kazkommertsbank in the amount sufficient to
prevent losses for its senior creditors as we've seen previously
in Kazakhstan."

While Kazkommertsbank previously got KZT250 billion from the
central bank for taking twice-defaulted BTA Bank off the state's
hands in 2014, it's failed to tackle the pile of bad debt as
crude lost about half its value since June of that year, dragging
down the tenge and eroding economic growth, Bloomberg states.

Halyk Bank, the nation's second-biggest lender, may start talks
about gaining control of Kazkommertsbank at a later stage of the
rescue, if Kazakhstan agrees to provide about KZT1.5 trillion to
plug holes in the troubled lender's balance sheet, Bloomberg
relays, citing two of the people familiar with the matter.
Another person said the size of the financing will depend on
talks between Halyk and the central bank, Bloomberg notes.



===========
L A T V I A
===========


EXPOBANK AS: Moody's Affirms B1 LT Deposit Rating, Outlook Neg.
---------------------------------------------------------------
Moody's Investors Service has affirmed the B1 long-term deposit
rating, b1 baseline credit assessment (BCA), adjusted BCA, and
Ba3(cr) long-term Counterparty Risk Assessment of AS Expobank
(Latvia). The outlook on the long-term deposit rating has been
changed to negative from stable.

The affirmation of Expobank's BCA of b1 primarily reflects the
credit strengths of the bank, in particular its high
capitalisation and low on-balance sheet credit risks, balanced
against challenging operating conditions and the bank's reliance
on a limited range of financial services to a varied, though
numerically restricted, non-resident corporate customer base that
pose concentration risks. The bank's long-term deposit ratings of
B1 are derived entirely from the bank's standalone profile and do
not benefit from any uplift from Moody's analysis of a bank's
liability structure in case of failure (under our Loss Given
Failure framework) or from any government support assumptions
given the small size of the institution. The CR Assessment of
Ba3(cr) receives one notch of uplift under our Loss Given Failure
framework.

The change in outlook to negative from stable reflects ongoing
regulatory initiatives that aim to tighten banks' controls around
money laundering in Latvia, which Moody's expects will increase
compliance costs and lengthen the time required to conduct due
diligence for certain cross-border and foreign currency
transactions that Expobank's business is highly reliant on.
Similarly, such increased controls may also reduce demand for the
affected financial services, potentially lowering customer
deposit and transaction flows or making it more difficult to
conduct business cross-border with correspondent banks.

Expobank's Not-Prime short term deposit rating and Not-Prime(cr)
short-term CR Assessment are unaffected by today's rating action.

RATINGS RATIONALE

--RATIONALE FOR THE AFFIRMATION OF THE BCA

Moody's affirmation of Expobank's b1 BCA takes into account the
bank's: (1) high capitalization, which despite being fairly
volatile, remains well above the 18% minimum set by the Latvian
regulator with a reported common equity tier 1 (CET1) ratio of
44.1% at 31 December 2015; (2) very low on-balance sheet credit
risks, with the bulk of its asset-side exposures being to foreign
investment-grade financial institutions; (3) sizeable liquidity
cushions; and (4) recently improved profitability (with net
profit over tangible assets increasing to 2.7% at end-December
2015, from 0.7% at end-December 2014).

These strengths are balanced against the bank's: (1) blended
macro profile of "Weak +", which captures the challenging
operating environment prevailing in the markets in which the bank
conducts the bulk of its business (effectively reflecting
Expobank's high reliance on Russia-based depositors and
customers); (2) concentration risks with regards to depositors as
well as transaction flows, though Moodys' notes the bank's
increased efforts and progress towards scaling up and
diversifying its operations; and (3) the lack of visibility of
its business arising from the high turnover of assets and
liabilities typical of its transactional business model.

---RATIONALE FOR AFFIRMING THE LONG-TERM DEPOSIT RATING

The affirmation of Expobank's long-term deposit rating at B1
reflects: (1) the affirmation of the bank's BCA and adjusted BCA
at b1; (2) the result from the rating agency's Advanced Loss-
Given Failure (LGF) analysis, which results in no uplift for the
deposit ratings; and (3) Moody's assessment of a low probability
of government support for Expobank, which results in no uplift
for the deposit ratings.

---RATIONALE FOR THE CHANGE IN OUTLOOK TO NEGATIVE FROM STABLE

Moody's change of outlook to negative from stable reflects the
risk of emerging pressure on Expobank's business volumes and
earnings in a tightening regulatory environment around money
laundering controls in Latvia. Moody's has no reason to believe
that Expobank is in violation of any such regulatory requirements
but it highlights the risks of indirect consequences on its
business given that tighter controls will likely increase
compliance costs and lengthen the time required to conduct due
diligence for certain cross-border and foreign currency
transactions that Expobank's business is highly reliant on.
Similarly, such increased controls may also reduce demand for the
affected financial services, potentially lowering customer
deposit and transaction flows or making it more difficult to
conduct business cross-border with correspondent banks.

---RATIONALE FOR AFFIRMING THE CR ASSESSMENT

As part of the rating action, Moody's has also affirmed the
Ba3(cr) CR Assessment of Expobank, one notch above the adjusted
BCA of b1. The CR Assessment is driven by the bank's adjusted
BCA, low likelihood of systemic support and by the cushion
against default provided to the senior obligations represented by
the CR Assessment by subordinated instruments amounting to 14% of
tangible banking assets.

WHAT COULD CHANGE THE RATING -- UP

An upgrade of the BCA, and consequently of the deposit rating, is
unlikely in the foreseeable future, as reflected in the negative
outlook on the bank's ratings. The outlook could return to stable
should the bank's earnings and overall business model remain
broadly resilient over the next 12 to 18 months despite the
evolving regulatory environment.

WHAT COULD CHANGE THE RATING -- DOWN

Downward pressure on Expobank's BCA would likely arise from: (1)
a material deterioration in the depositor base or earnings of the
bank due to tighter regulation or other reasons; (2) any
emergence of evidence of violation of regulatory requirements;
and/or (3) a deterioration in the macro profile of the bank that
would point to broad pressure on the bank's credit profile.



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


ELEX ALPHA: Moody's Lowers Class E Notes Rating to Caa1
-------------------------------------------------------
Moody's Investors Service has taken rating actions on the
following classes of notes issued by eleX Alpha S.A.:

EUR16.5M Class D Senior Secured Deferrable Floating Rate Notes
due 2023, Upgraded to Aa2 (sf); previously on Mar 16, 2016
Upgraded to A2 (sf)

EUR16.5M Class E Senior Secured Deferrable Floating Rate Notes
due 2023, Downgraded to Caa1 (sf); previously on Mar 16, 2016
Affirmed B1 (sf)

Moody's also affirmed the ratings of the following notes issued
by eleX Alpha S.A.:

EUR28.5M (current balance EUR25.91) Class B Senior Secured
Floating Rate Notes due 2023, Affirmed Aaa (sf); previously on
Mar 16, 2016 Affirmed Aaa (sf)

EUR15M Class C Senior Secured Deferrable Floating Rate Notes due
2023, Affirmed Aaa (sf); previously on Mar 16, 2016 Upgraded to
Aaa (sf)

eleX Alpha S.A., issued in December 2006, is a collateralised
loan obligation (CLO) backed by a portfolio of mostly high-yield
senior secured European loans. The portfolio is managed by
Deutsche Asset Management International GmbH. The transaction's
reinvestment period ended in March 2013.

RATINGS RATIONALE

The upgrade on the Class D notes is primarily a result of the
significant deleveraging of the Class A and B notes following
amortisation of the underlying portfolio since the last rating
action in March 2016 and subsequent increases of the
overcollateralization ratios (the "OC ratios") of all the
remaining classes of notes except Class E.

The downgrade on the Class E notes is primarily a result of the
deterioration in its over-collateralisation ratio and worsening
of the portfolio credit quality since the last rating action in
March 2016 . Class E OC ratio has reduced from 107.12% to 105.58%
between January 2016 and November 2016. During this period, the
trustee reported WARF has increased from 3027 to 3329 and
defaults have also increased from zero to EUR1.41m.

Moody's notes that since the last rating action, the Class A
notes have fully redeemed and the Class B notes have repaid by
EUR2.58m (9% of the original balance) as of the November 2016
report. As a result of the deleveraging the OC ratios of the
senior notes have increased significantly. According to the
November 2016 trustee report, the classes A/B, C, and D OC ratios
are 301.95%, 191.24%, and 136.28% respectively compared to levels
in January 2016 of 209.60%, 161.36%, and 128.76%.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base
case, Moody's analysed the underlying collateral pool as having a
cash and performing par balance of EUR66.6 million and GBP7.2
million, a weighted average default probability of 20.64%
(consistent with a WARF of 2971 and a weighted average life of
4.22 years), a weighted average recovery rate upon default of
48.45% for a Aaa liability target rating and a diversity score of
13.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool. In each case, historical and market
performance and a collateral manager's latitude to trade
collateral are also relevant factors. Moody's incorporates these
default and recovery characteristics of the collateral pool into
its cash flow model analysis, subjecting them to stresses as a
function of the target rating of each CLO liability it is
analysing.

Methodology Underlying the Rating Action:

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

Factors that would lead to an upgrade or downgrade of the
ratings:

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it lowered the weighted average recovery rate by 5
percentage points; the model generated outputs that were in line
with the base-case results for Class B and Class C and within a
notch for Classes D and E.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
note, in light of uncertainty about credit conditions in the
general economy. CLO notes' performance may also be impacted
either positively or negatively by 1) the manager's investment
strategy and behaviour and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties because of embedded ambiguities.


INTERNATIONAL AUTOMOTIVE: Shenda Sale No Impact on Moody's B2 CFR
-----------------------------------------------------------------
Moody's Investors Service said that International Automotive
Components Group's ("IAC") announced plan to sell Shanghai Shenda
Co., Ltd ("Shenda") 70% of its soft trim and acoustic operations
is credit negative due to the loss of diversity and earnings, and
the need to absorb corporate overhead. This transaction will also
increase in the near-term company's leverage due to the loss of
earnings (this does not include potential paydown of debt).
Nevertheless, the transaction does not impact the company's
ratings including its B2 Corporate Family Rating ("CFR"), B2-PD
Probability of Default Rating ("PDR"), Caa1 rating on its $300
million senior secured notes due June 2018, or stable rating
outlook.



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


ACCUNIA EUROPEAN CLO I: S&P Affirms BB Rating to Class E Notes
--------------------------------------------------------------
S&P Global Ratings affirmed its credit ratings on Accunia
European CLO I B.V.'s class A, B, C, D, and E notes following the
transaction's effective date.

Most European cash flow collateralized loan obligations (CLOs)
close before purchasing the full amount of their targeted level
of portfolio collateral.

On the closing date, the collateral manager typically covenants
to purchase the remaining collateral within the guidelines
specified in the transaction documents to reach the target level
of portfolio collateral.  Typically, the CLO transaction
documents specify a date by which the targeted level of portfolio
collateral must be reached.  The "effective date" for a CLO
transaction is usually the earlier of the date on which the
transaction acquires the target level of portfolio collateral, or
the date defined in the transaction documents.  Most transaction
documents contain provisions directing the trustee to request the
rating agencies that have issued ratings upon closing to affirm
the ratings issued on the closing date after reviewing the
effective date portfolio (typically referred to as an "effective
date rating affirmation").

An effective date rating affirmation reflects S&P's opinion that
the portfolio collateral purchased by the issuer, as reported to
S&P by the trustee and collateral manager, in combination with
the transaction's structure, provides sufficient credit support
to maintain the ratings that S&P assigned on the transaction's
closing date.  The effective date reports provide a summary of
certain information that S&P used in its analysis and the results
of S&P's review based on the information presented to S&P.

S&P believes the transaction may see some benefit from allowing a
window of time after the closing date for the collateral manager
to acquire the remaining assets for a CLO transaction.  This
window of time is typically referred to as a "ramp-up period."
Because some CLO transactions may acquire most of their assets
from the new-issue leveraged loan market, the ramp-up period may
give collateral managers the flexibility to acquire a more
diverse portfolio of assets.

For a CLO that has not purchased its full target level of
portfolio collateral by the closing date, S&P's ratings on the
closing date and prior to its effective date review are generally
based on the application of S&P's criteria to a combination of
purchased collateral, collateral committed to be purchased, and
the indicative portfolio of assets provided to S&P by the
collateral manager, and may also reflect its assumptions about
the transaction's investment guidelines.  This is because not all
assets in the portfolio have been purchased.

"When we receive a request to issue an effective date rating
affirmation, we perform quantitative and qualitative analysis of
the transaction in accordance with our criteria to assess whether
the initial ratings remain consistent with the credit enhancement
based on the effective date collateral portfolio.  Our analysis
relies on the use of CDO Evaluator to estimate a scenario default
rate at each rating level based on the effective date portfolio,
cash flow modelling to determine the appropriate percentile
break-even default rate at each rating level, the application of
our supplemental tests, and the analytical judgment of a rating
committee," S&P said.

"In our published effective date report, we discuss our analysis
of the information provided by the transaction's trustee and
collateral manager in support of their request for effective date
rating affirmation.  In most instances, we intend to publish an
effective date report each time we issue an effective date rating
affirmation on a publicly rated European cash flow CLO," S&P
noted.

On an ongoing basis after S&P issues an effective date rating
affirmation, it will periodically review whether, in its view,
the current ratings on the notes remain consistent with the
credit quality of the assets, the credit enhancement available to
support the notes, and other factors, and take rating actions as
S&P deems necessary.

RATINGS LIST

Accunia European CLO I B.V.
EUR421.23 Million Senior Secured And Senior Secured Deferrable
Floating-Rate Notes

Ratings Affirmed

Class  Rating

A      AAA (sf)
B      AA (sf)
C      A (sf)
D      BBB (sf)
E      BB (sf)


CLONDALKIN INDUSTRIES: Moody's Withdraws B2 CFR on Debt Repayment
-----------------------------------------------------------------
Moody's Investors Service has withdrawn the B2 corporate family
rating (CFR) and B2-PD probability of default rating (PDR) of
Clondalkin Industries B.V.

Concurrently, Moody's has withdrawn the B2 rating assigned to the
senior secured term loan borrowed at Clondalkin Acquisition B.V.

The company has no outstanding rated debt following completion of
the acquisition of the company by Egreria, a Dutch based private
equity firm and subsequent repayment of the company's rated
debts.

RATINGS RATIONALE

Moody's has withdrawn Clondalkin's ratings due to the full debt
repayment.

Clondalkin Flexible Packaging is a vertically-integrated provider
of flexible products supplying niche markets with substrate
production, printing and conversion.


GOLDENTREE CREDIT 2013-1: S&P Affirms BB Rating on Class E Notes
----------------------------------------------------------------
S&P Global Ratings affirmed its credit ratings on all classes of
notes of GoldenTree Credit Opportunities European CLO 2013-1 B.V.

The affirmations follow S&P's credit and cash flow analysis of
the transaction using data from the October 2016 payment date
report and the application of S&P's relevant criteria.  S&P
conducted its cash flow analysis to determine the break-even
default rates (BDR) for each rated class of notes at each rating
level.  The BDR represents S&P's estimate of the maximum level of
gross defaults, based on S&P's stress assumptions, that a tranche
can withstand and still pay interest and fully repay principal to
the noteholders.  S&P used the portfolio balance that it
considers to be performing, the reported weighted-average spread,
and the weighted-average recovery rates that S&P considered to be
appropriate.  S&P incorporated various cash flow stress scenarios
using its standard default patterns and timings for each rating
category assumed for each class of notes, combined with different
interest stress scenarios as outlined in S&P's criteria.

The reinvestment period ends in June 2017.  The October investor
report shows that the transaction is currently holding EUR184.90
million in the principal account and in addition S&P understands
that one further asset (EUR4.2 million) repaid in November.
Accordingly, S&P has assumed a principal account balance of
EUR189.01 million for the purposes of our analysis, representing
approximately 60% of the transaction's par value.

The manager has not indicated to S&P whether they will invest the
available principal cash before the end of the reinvestment
period.  Should they not, then the available principal would be
sufficient to fully repay the classes A-1, A-2, A-3, and B, as
well as partially repay the class C notes.

Another consequence of the high cash balance is the relatively
high portfolio concentration for a transaction still in its
reinvestment period.  The transaction is currently invested in 13
assets; excluding cash, 19% of these assets are rated in the
'CCC' category.  Therefore, the calculated scenario default rates
(SDRs) are significantly higher than S&P would expect to see for
a transaction at this stage of its investment life.

The future performance of this transaction, and any associated
ratings evolution, are to a significant extent dependent on how
the manager decides to utilize the available principal cash
component.  In S&P's analysis, it has considered potential
investments by the manager over the remaining reinvestment
period, taking into account the investment strategy of the
investment fund that this transaction forms a part of.

S&P's credit and cash flow analysis of the transaction indicates
that the available credit enhancement for all classes of notes is
commensurate with the currently assigned ratings.  S&P has
therefore affirmed its ratings on all classes of notes.

GoldenTree Credit Opportunities European CLO 2013-1 is a cash
flow collateralized loan obligation (CLO) transaction that
securitizes loans and bonds to primarily speculative-grade
corporate firms. The transaction closed in June 2013 and is
managed by GoldenTree Asset Management LP.  Its reinvestment
period ends in June 2017.

RATINGS LIST

Class                  Rating
              To                   From

GoldenTree Credit Opportunities European CLO 2013-1 B.V.
EUR285 Million, GBP15.32 Million Floating-Rate, Fixed-Rate, and
Subordinated Notes

Ratings Affirmed

A-1           AAA (sf)
A-2           AAA (sf)
A-3           AAA (sf)
B             AA (sf)
C             A (sf)
D             BBB (sf)
E             BB (sf)


LEOPARD CLO III: Moody's Cuts Cl. E-1 Notes Rating to Ca(sf)
------------------------------------------------------------
Moody's Investors Service has upgraded the rating on the Class D
notes issued by Leopard CLO III B.V.:

  EUR16.25M (balance outstanding: EUR6.76M) Class D Notes,
  Upgraded to A1 (sf); previously on Jul 2, 2015 Upgraded to Baa2
  (sf)

Moody's also downgraded the ratings on the Class E1 and Class E2
notes issued by Leopard CLO III B.V.:

  EUR6.25M (balance outstanding: EUR5.10M) Class E1 Notes,
  Downgraded to Ca (sf); previously on Jul 2, 2015 Affirmed
  Caa3 (sf)

  EUR4M (balance outstanding: EUR3.45M) Class E2 Notes,
  Downgraded to Ca (sf); previously on Jul 2, 2015 Affirmed
  Caa3 (sf)

Leopard CLO III B.V., issued in April 2005, is a single currency
Collateralized Loan Obligation ("CLO") backed by a portfolio of
mostly high yield senior secured European loans managed by M&G
Investment Management Limited. This transaction passed its
reinvestment period in October 2010.

RATINGS RATIONALE

The upgrade to the rating on the Class D notes is primarily a
result of the significant improvement in Class D over-
collateralization (OC) ratio since the payment date in October
2015. The downgrades to the ratings of Class E1 and Class E2
notes are due to deterioration in Class E OC and interest
coverage ratios over the same period.

The Class D notes were paid down by EUR4.8 million, or 29.5% of
their original balance, on October 2016 payment date and EUR9.49
million in total, or 58.4% of their original balance, since
October 2015 payment date. According to the trustee report dated
November 2016 the Class D and Class E OC ratios are reported at
148.30% and 65.47% compared to November 2015 levels of 125.4% and
75.5%, respectively. Class E interest coverage ratio as of
November 2016 trustee report is 25.7% compared to 45.3% in
November 2015.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base
case, Moody's analysed the underlying collateral pool as having a
performing par of EUR9.88 million, principal proceeds balance of
EUR1.73 million, defaulted par of EUR1.1 million, a weighted
average default probability of 18.67% (consistent with a WARF of
3,809 over 2.09 years), a weighted average recovery rate upon
default of 43.17% for a Aaa liability target rating, a diversity
score of 4 and a weighted average spread of 4.07%.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool. In each case, historical and market
performance and a collateral manager's latitude to trade
collateral are also relevant factors. Moody's incorporates these
default and recovery characteristics of the collateral pool into
its cash flow model analysis, subjecting them to stresses as a
function of the target rating of each CLO liability it is
analyzing.

Methodology Underlying the Rating Action:

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

Factors that would lead to an upgrade or downgrade of the
ratings:

In addition to the base-case analysis, Moody's conducted
sensitivity analyses on the key parameters for the rated notes,
for which it assumed lower weighted average recovery rate for the
portfolio. Moody's ran a model in which it reduced the weighted
average recovery rate by 5%; the model generated outputs that
were within two notches of the base-case results for Class D
notes.

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
note, in light of uncertainty about credit conditions in the
general economy. CLO notes' performance may also be impacted
either positively or negatively by 1) the manager's investment
strategy and behaviour and 2) divergence in the legal
interpretation of CDO documentation by different transactional
parties because of embedded ambiguities.

Additional uncertainty about performance is due to the following:

1)Portfolio amortisation: The main source of uncertainty in this
transaction is the pace of amortisation of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortisation could accelerate as a consequence of high loan
prepayment levels or collateral sales by the collateral manager
or be delayed by an increase in loan amend-and-extend
restructurings. Fast amortisation would usually benefit the
ratings of the notes beginning with the notes having the highest
prepayment priority.

2)Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assumes have
defaulted can result in volatility in the deal's over-
collateralisation levels. Further, the timing of recoveries and
the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Moody's
analysed defaulted recoveries assuming the lower of the market
price or the recovery rate to account for potential volatility in
market prices. Recoveries higher than Moody's expectations would
have a positive impact on the notes' ratings.

3)Around 34% of the collateral pool consists of debt obligations
whose credit quality Moody's has assessed by using credit
estimates. As part of its base case, Moody's has stressed large
concentrations of single obligors bearing a credit estimate as
described in "Updated Approach to the Usage of Credit Estimates
in Rated Transactions", published in October 2009 and available
at http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_120461.

4) Long-dated assets: The presence of approximately 12% of assets
that mature beyond the CLO's legal maturity date exposes the deal
to liquidation risk on those assets. Moody's assumes that, at
transaction maturity, the liquidation value of such an asset will
depend on the nature of the asset as well as the extent to which
the asset's maturity lags that of the liabilities. Liquidation
values higher than Moody's expectations would have a positive
impact on the notes' ratings.

5) Lack of portfolio granularity: The performance of the
portfolio depends to a large extent on the credit conditions of a
few large obligors, especially when they default. Because of the
deal's low diversity score and lack of granularity, Moody's
supplemented its typical Binomial Expansion Technique analysis
with a simulated default distribution using Moody's CDOROMTM
software and an individual scenario analysis.

In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
other Moody's analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision.


STRONG BV 2016: Moody's Rates EUR6.5MM Class C Notes 'Ba1'
----------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to the
following classes of notes issued by STRONG 2016 B.V.:

EUR600.0 million senior class A mortgage-backed notes due 2065,
Definitive Rating Assigned Aaa (sf)

EUR43.4 million junior class B mortgage-backed notes due 2065,
Definitive Rating Assigned Aa1 (sf)

EUR6.5 million subordinated class C notes due 2065, Definitive
Rating Assigned Ba1 (sf)

STRONG 2016 B.V. is a revolving securitisation of Dutch prime
residential mortgage loans. Obvion N.V. (not rated) is the
originator and servicer of the portfolio. Provisional ratings
were assigned to the notes on December 13, 2016.

RATINGS RATIONALE

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

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

MILAN CE for this pool is 3.6%, which is in line with preceding
STRONG transactions and with other Dutch 100% NHG RMBS
transactions, owing to: (i) the availability of the NHG-guarantee
for 100.0% of the loan parts in the pool, same as for the loan
parts to be added during the revolving period, (ii) the
replenishment period of 7 years where there is a risk of
deteriorating the pool quality through the addition of new loans,
although this is mitigated by replenishment criteria, (iii) the
weighted average loan-to-foreclosure-value (LTFV) of 99.34%,
which is similar to LTFV observed in other Dutch RMBS
transactions, (iv) the proportion of interest-only loan parts
(41.02%), and (v) the weighted average seasoning of 6.48 years.
The risk of a deteriorating pool quality through the addition of
loans is partly mitigated by the replenishment criteria which
includes, amongst others, that the weighted average CLTMV of all
the mortgage loans, including those to be purchased by the
Issuer, does not exceed 94.0% and the minimum weighted average
seasoning is at least 40 months. Further, no new loans can be
added to the pool if there is a PDL outstanding, if loans more
than 3 months in arrears exceeds 1.5% or the cumulative loss
exceeds 0.25%.

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

The transaction benefits from a non-amortising reserve fund,
funded at 1.01% of the total class A and B notes' outstanding
amount at closing, building up to 1.3% by trapping available
excess spread. The initial total credit enhancement for the Aaa
(sf) rated notes is 7.76%, 6.75% through note subordination and
the reserve fund amounting to 1.01%. The transaction also
benefits from an excess margin of 50 bps provided through the
swap agreement. The swap counterparty is Obvion N.V. and the
back-up swap counterparty is Cooperatieve Rabobank U.A.
("Rabobank"; rated Aa2/P-1). Rabobank is obliged to assume the
obligations of Obvion N.V. under the swap agreement in case of
Obvion N.V.'s default. The transaction also benefits from an
amortising cash advance facility of 2.0% of the outstanding
principal amount of the notes (including the class C notes) with
a floor of 1.45% of the outstanding principal amount of the notes
(including the class C notes) as of closing.

STRESS SCENARIOS:

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

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

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

The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage. Please see Moody's Approach to Rating RMBS Using the MILAN
Framework for further information on Moody's analysis at the
initial rating assignment and the on-going surveillance in RMBS.

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

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

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

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

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



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


BALTINVESTBANK: Moody's Hikes LT Deposit Ratings to Caa1
--------------------------------------------------------
Moody's Investors Service has upgraded the long-term local- and
foreign-currency deposit ratings of Baltinvestbank to Caa1 from
Caa3. It has also affirmed the bank's short-term local- and
foreign-currency deposit ratings at Not-Prime. Concurrently,
Moody's has upgraded Baltinvestbank's baseline credit assessment
(BCA) and adjusted BCA to caa2 and caa1, respectively, from ca,
upgraded the bank's long-term Counterparty Risk Assessment (CR
Assessment) to B3(cr) from Caa2(cr) and affirmed the bank's
short-term CR Assessment of Not-Prime(cr). The outlook on the
bank's long-term deposit ratings changed to stable from positive.

RATINGS RATIONALE

Moody's upgrade of the bank's BCA to caa2 and adjusted BCA to
caa1 was prompted by: (1) materialized financial support from the
state Deposit Insurance Agency (DIA) to address challenges
related to its asset quality, capital and liquidity; along with
(2) change of the ownership and integration into Absolut Bank (B1
negative, b1). As part of the financial rehabilitation plan
Absolut Bank acquired 99.99% of Baltinvestbank's shares and has
consolidated it into its banking group since the middle of 2016.

Baltinvestbank received RUB32.3 billion long-term credit
facilities from the DIA and Absolut Bank in December 2015 to
cover the imbalance between the fair value of assets and the
carrying value of liabilities, and to support its liquidity
position. This enabled the bank to recognize a RUB16.5 billion
one-off gain, through the initial recognition of these new
facilities under market rates. This bolstered the bank's
revenues, although was not enough to absorb provisioning charges
of RUB20.1 billion, which caused a net loss of RUB6.1 billion in
2015.

Over the first nine months of 2016, the bank was loss-making
owing to additional provisioning charges and weak net interest
income, which resulted in equity shrinkage to RUB1.1 billion
(2.2% of the assets). Moody's notes that Baltinvestbank has
managed to cut net losses in Q3 2016 to RUB162 million through
control over credit and operational costs. The rating agency
expects that the bank will break even in the next 12-18 months
owing to improving net interest margins, and is subject to no
additional material credit costs.

Moody's assesses the likelihood of affiliate support from the new
shareholder as moderate and results in a one notch rating uplift
from the financially stronger Absolut Bank. In rating agency's
view the strategic fit and operational integration of
Baltinvestbank into Absolut Bank needs to be tested in the next
12-18 months. The likelihood of further public support -- in the
form of an extension of the existing support package -- is
assessed as low, which foresees no rating uplift. This is based
on no additional financial support specified in the agreement
between the DIA, Absolut Bank and Baltinvestbank.

The stable outlook on the Caa1 deposit ratings is driven by
Moody's expectation of a gradual recovery of the bank's internal
capital generation capacity upon implementation of its new
development strategy, which focuses on small and medium-sized
enterprise (SME) and retail banking operations (car lending, in
particular), a more effective utilization of existing branch
networks, and cross-selling of Absolut Bank products.

WHAT COULD MOVE THE RATINGS UP/DOWN

Baltinvestbank's BCA and thus its deposit ratings could be
upgraded if the bank was successful in reversing its operations
back to profits, which together with a more conservative risk
appetite would translate into improved asset quality metrics.

Baltinvestbank's deposit ratings could be downgraded if the bank
was to identify additional significant problem assets, losses on
which would erode its capital profile.

PRINCIPAL METHODOLOGY

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


URAL FEDERAL: Fitch Withdraws 'BB' LT FC Issuer Default Ratings
---------------------------------------------------------------
Fitch Ratings has withdrawn Russian Ural Federal University's
(UrFU) Long-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) of 'BB' and National Long-Term Rating of 'AA-
(rus)', both with Stable Outlooks, and Short-Term Foreign
Currency IDR of 'B'.

Fitch has chosen to withdraw the ratings of UrFU for commercial
reasons. As Fitch does not have sufficient information to
maintain the ratings, accordingly, the agency has withdrawn
UrFU's ratings without affirmation and will no longer provide
ratings or analytical coverage for UrFU.

RATING SENSITIVITIES
Not applicable.


VOZROZHDENIE BANK: Moody's Affirms Deposit Ratings at B1
--------------------------------------------------------
Moody's Investors Service has affirmed the long-term local and
foreign-currency deposit ratings of Vozrozhdenie Bank (V.Bank) at
B1 and changed the outlook to stable from negative for these
ratings. The rating agency has also affirmed the bank's baseline
credit assessment (BCA) / adjusted BCA of b1, its short-term
local- and foreign-currency deposit ratings of Not Prime, its
long-term Counterparty Risk Assessment (CR Assessment) of Ba3(cr)
and its short-term CR Assessment of Not Prime(cr).

RATINGS RATIONALE

The affirmation of the B1 deposit ratings with the stable outlook
reflects V.Bank's recently stabilized credit profile with
recovering profitability and Moody's expectation of lower credit
costs in the next 12 to 18 months. Owing to stabilization of
problem loans, growing net interest income and strict control
over operating expenses, V.Bank's net income recovered to 1.3% of
average assets (annualized) in the most recent two financial
quarters; before that, the bank was loss-making during the four
financial quarters. This improvement, combined with Moody's view
that the contraction in the Russian economy is ending and the
rating agency's expectation of nascent economic growth of 1.5% in
2017, will benefit the bank's financial metrics.

The bank's loan loss reserves, that now account for 83% of all
overdue loans and 108% of NPLs, sufficiently cover Moody's
estimate of expected losses, as Moody's recently observe limited
build-up in problem loans. Loans with various signs of problems
(include individually impaired loans in the corporate and SME
segments, "watch list" corporate loans and all overdue loans in
the retail segment) stood unchanged at RUB27.4 billion (15% of
gross loans) as of 30 September 2016 compared to 30 June 2016.
Moody's expect V.Bank to report a further decline in credit costs
in the next 12 to 18 months, that will further support profits
and will help the bank to enhance its capital buffers. As of 30
September 2016, V.Bank reported regulatory Tier 1 ratio of 8.23%
and total capital adequacy ratio of 12.62%.

Given this, Moody's has stabilized the outlook on Vozrozhdenie
Bank, whose credit profile the rating agency expects to remain
stable and supportive of the current rating levels in the next
12-18 months, amid an improving operating environment.

WHAT COULD MOVE RATINGS UP OR DOWN

The ratings could be upgraded following sustainable improvements
in the bank's financial profile and strengthening and
diversification of its franchise as reflected in a stronger
performance of the corporate and SME segments.

The ratings could be downgraded if the loss absorption capacity
and financial fundamentals of the bank erode beyond Moody's
current expectations.



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


BANKINTER 3 FTPYME: S&P Raises Rating on Class D Notes to CCC+
--------------------------------------------------------------
S&P Global Ratings raised its credit ratings on Bankinter 3
FTPYME, Fondo de Titulizacion de Activos' class A2, A3(G), B, and
D notes. At the same time, S&P has affirmed its ratings on the
class C and E notes.

Bankinter 3 FTPYME is a single-jurisdiction cash flow
collateralized loan obligation (CLO) transaction securitizing a
portfolio of small and midsize enterprise (SME) loans that were
originated by Bankinter S.A. in Spain.  The transaction closed in
November 2007.

                          CREDIT ANALYSIS

S&P has applied its European SME CLO criteria to assess the
portfolio's average credit quality.  In S&P's opinion, the credit
quality of the portfolio is about 'b', based on S&P's qualitative
originator assessment on Bankinter as strong and that Spain's
Banking Industry Country Risk Assessment (BICRA) is 5.

Taking the above into account and considering the originator's
average annual observed default frequency, S&P has applied a
downward adjustment of one notch to the 'b+' archetypical average
credit quality.  S&P's analysis in comparing the differences in
the creditworthiness of the securitized portfolio compared with
the originator's entire loan book showed that no further
adjustment of average credit quality was required.

As a result of these factors, based on S&P's assessment of the
average credit quality of the portfolio, S&P generated its 'AAA'
scenario default rate (SDR) of 61.27%.

S&P has calculated the 'B' SDR, based primarily on S&P's analysis
of historical SME performance data and S&P's projections of the
transaction's future performance.  S&P has reviewed the
portfolio's historical default data, and assessed market
developments, macroeconomic factors, changes in country risk, and
the way these factors are likely to affect the loan portfolio's
creditworthiness.  As a result of this analysis, S&P's 'B' SDR is
7.59%.

S&P interpolated the SDRs for rating levels between 'B' and 'AAA'
in accordance with S&P's European SME CLO criteria.

                        RECOVERY RATE ANALYSIS

At each liability rating level, S&P assumed a weighted-average
recovery rate (WARR) by taking into consideration the asset type
(secured/unsecured) and the country recovery grouping and
observed historical recoveries.

As a result of this analysis, S&P's WARR assumption in a 'AAA'
rating scenario was 30.94%.  The recovery rates at more junior
rating levels were higher (as outlined in S&P's European SME CLO
criteria).

                        CASH FLOW ANALYSIS

S&P used the portfolio balance that the servicer considered to be
performing, the current weighted-average spread, and the WARRs
that S&P considered to be appropriate.  S&P subjected the capital
structure to various cash flow stress scenarios, incorporating
different default patterns and interest rate curves, to determine
the rating level, based on the available credit enhancement for
each class of notes under our European SME CLO criteria.

                          COUNTRY RISK

S&P's foreign currency long-term sovereign rating on the Kingdom
of Spain is 'BBB+'.

                        CASH FLOW ANALYSIS

The results of S&P's credit and cash flow analysis indicate that
all classes of notes have increased available credit enhancement,
which, in S&P's view, has primarily been driven by deleveraging
of the transaction since S&P's previous review.

Under S&P's structured finance ratings above the sovereign
criteria (RAS criteria), S&P can rate a securitization up to four
notches above its foreign currency rating on the sovereign if the
tranche can withstand severe stresses.  However, if all six of
the conditions in paragraph 42 of the RAS criteria are met
(including credit enhancement being sufficient to pass an extreme
stress), S&P can assign ratings in this transaction up to a
maximum of six notches (two additional notches of uplift) above
the sovereign rating.  For the class A2 and A3(G) notes, S&P's
analysis indicates that these classes of notes can withstand
severe stresses.  S&P has therefore raised to 'AA- (sf)' from
'BBB+ (sf)' its ratings on the class A2 and A3(G) notes.

While the class B notes have sufficient credit enhancement to
withstand higher defaults, they are not able to pass the
sovereign default stress test in S&P's RAS criteria.  In
accordance with S&P's RAS criteria, this would imply that the
class B notes may not be rated any higher than the long-term
sovereign rating on Spain.  Taking this and the results of S&P's
credit and cash flow analysis into account, S&P has raised its
rating on the class B notes to 'BBB+ (sf)' from 'BBB- (sf)'.

S&P's credit and cash flow analysis of the class D notes
indicates that the notes are able to achieve ratings higher than
those currently assigned, primarily driven by increased levels of
credit enhancement since S&P's previous review.  S&P has
therefore raised to 'CCC+ (sf)' from 'CCC- (sf)' its rating on
the class D notes.

S&P's analysis indicates that the available credit enhancement
for the class C notes is commensurate with the currently assigned
rating.  S&P has therefore affirmed its 'B (sf)' rating on this
class of notes.

The class E notes remain in default and so S&P has affirmed its
'D (sf)' rating on the class E notes.

RATINGS LIST

Class              Rating
            To                From

Bankinter 3 FTPYME, Fondo de Titulizacion de Activos
EUR617.4 Million Asset-Backed Floating-Rate Notes

Ratings Raised

A2          AA- (sf)          BBB+ (sf)
A3(G)       AA- (sf)          BBB+ (sf)
B           BBB+ (sf)         BBB- (sf)
D           CCC+ (sf)         CCC- (sf)

Ratings Affirmed

C           B (sf)
E           D (sf)



=====================
S W I T Z E R L A N D
=====================


UNILABS: S&P Affirms 'CCC+' Rating on PIK Toggle Notes
------------------------------------------------------
S&P Global Ratings said that it has reviewed its recovery and
issue-level ratings for Unilabs 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 revising to '3' from '4' the recovery rating for the
senior secured term loan B.  S&P affirmed the issue rating at 'B'
in line with the corporate credit rating.  At the same time, S&P
affirmed the issue rating on the payment-in-kind (PIK) toggle
notes at 'CCC+'.  The recovery rating on the PIK notes is
unchanged at '6'.

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:

   -- S&P revised the recovery rating to '3' from '4' on the
      application of S&P's updated recovery criteria owing to its
      higher enterprise value multiple of 6.0x.  The multiple
      reflects S&P's assessment of Unilabs' relatively strong
      market position and S&P's view of the European labs and
      diagnostics market, which leads to a higher valuation for
      the company.  The recovery and issue ratings also reflect
      the negligible prior-ranking liabilities.  S&P's recovery
      expectations are in the lower half of the 50%-70% range.

   -- The PIK toggle notes have an issue rating of 'CCC+' and a
      recovery rating of '6',reflecting the notes' subordinated
      position in the company's capital structure.

   -- S&P's hypothetical default scenario assumes unfavorable
      effects of health care reforms on pricing, in conjunction
      with the company pursuing an unsuccessful acquisitive
      strategy.  These would lead to lower profits and greater
      competition, resulting in higher-than-expected expansion
      costs.

   -- S&P values Unilabs as a going concern because the company
      has good market positions in several countries.

Simplified default assumptions:

   -- Default year: 2020
   -- Jurisdiction: Sweden

Simplified recovery waterfall:

   -- Emergence EBITDA: EUR80 million (capital expenditure set at
      3.5% of sales, slightly higher than anchor to reflect S&P's
      expectations for minimum capex at emergence from default.
      No cyclicality adjustment or operational adjustment
      applied)
   -- Multiple: 6x (reflecting its relatively strong market
      position and its European labs and diagnostics market
      focus)
   -- Gross recovery value: EUR482 million
   -- Net recovery value for waterfall after admin expenses (5%):
      EUR458 mil.
   -- Estimated priority claims (asset-based lending or other):
      Nil
   -- Remaining recovery value: EUR458 million
   -- Estimated senior secured debt claim: $844 million
   -- Value available for first-lien claim: EUR458 million
   -- Recovery range: 50%-70% (lower half of the range)
   -- Recovery rating: 3
   -- Estimated PIK notes claim: EUR211 million
   -- Value available for PIK notes claim: Nil
   -- Recovery range: 0%-10%
   -- Recovery rating: 6



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


AQUASCUTUM: YGM to Sell Business for GBP97 Million
--------------------------------------------------
BBC News reports that Aquascutum is being sold for US$120 million
(GBP97 million).

According to BBC, reports suggest Chinese buyers are acquiring
the clothing retailer, which started in London in the 1850s.

Its illustrious fans have included the Queen Mother, Margaret
Thatcher and actors such as Cary Grant, BBC notes.

But after the British firm was saved from administration in 2012,
it has mainly focused on China and last year saw its UK sales
fall 16%, BBC relates.

Hong Kong-based YGM Trading, which bought it for GBP15 million
four years ago, said Aquascutum is due to be sold in March 2017
to two buyers, BBC relays.

YGM said in its annual report the unnamed acquirers have made a
US$5 million down payment for exclusive rights to the deal, BBC
recounts.

Bloomberg said Chinese textile firm Shandong Ruyi Group is
understood to be one of the buyers, BBC notes.

The retailer has struggled in recent years, closing its
Nottinghamshire factory in 2012 and then falling into
administration, BBC discloses.

Under YGM's ownership, the company's primary focus has been
China, with 135 of its 146 outlets located in mainland China,
Hong Kong, Macau and Taiwan, BBC states.

Last year, it closed 14 stores in China amid declining sales, but
opened one in Europe, BBC relays.

Aquascutum is a trench coat maker.


ED'S EASY: Boucher Square Store Set to Close Today
--------------------------------------------------
Rachel Martin at Belfast Telegraph reports that about a dozen
staff at Belfast's only branch of restaurant chain Ed's Easy
Diner have been told it will shut its doors for good.

According to Belfast Telegraph, employees were told the Boucher
Square store would close on Wednesday, Dec. 28.

The American-style diner chain was once hailed as one of the
fastest-growing restaurant businesses in the UK, but it has
suffered a turbulent year, Belfast Telegraph recounts.

It went into administration earlier this year and was bought over
by Giraffe Concepts Limited, part of Boparan Restaurant Holdings,
in October, Belfast Telegraph relays.

As part of the deal to buy Ed's Easy Diner, it was announced 26
branches would close with the loss of almost 400 jobs across the
UK, Belfast Telegraph notes.

In the latest cuts, other branches in England are also set to
shut down, the Belfast Telegraph can reveal.  It is understood
the Gloucester and Canterbury branches are to close, Belfast
Telegraph states.

The Boucher Road branch was the chain's first outlet in Northern
Ireland and created 25 jobs when it opened just a year-and-a-half
ago, Belfast Telegraph discloses.

Rob Croxen and Blair Nimmo -- blair.nimmo@kpmg.co.uk -- from KPMG
had been appointed joint administrators to Ed's Easy Diner,
Belfast Telegraph recounts.

The administrators completed a pre-packaged sale of the business
to Giraffe Concepts Ltd., Belfast Telegraph relates.

It is believed the owners had been looking for around GBP100
million for the chain, Belfast Telegraph notes.

At the time, the deal was said to have saved around 700 jobs
across the restaurant chain, Belfast Telegraph relays.

The casual eatery is known for its menu of burgers, chilli, hot
dogs, milkshakes and fries in 1950s American diner-style
surroundings, complete with jukeboxes.


INNOVIA GROUP: Moody's Puts B1 CFR on Review for Upgrade
--------------------------------------------------------
Moody's Investors Service has placed on review for upgrade the B1
corporate family rating (CFR) and B1-PD probability of default
rating (PDR) of Innovia Group (Holding 3) Ltd (Innovia), a
leading producer of polymer film for industrial applications and
banknotes. Concurrently, Moody's has also placed the B2 rating of
the senior secured notes issued by Innovia Group (Finance) plc
under review for upgrade.

The rating action follows the announcement on December 19, 2016,
that CCL Industries Inc. (CCL, Baa2 Negative) has entered into a
definitive agreement to acquire Innovia.

RATINGS RATIONALE

The rating review was prompted by CCL Industries Inc.'s
announcement that it has reached a definitive agreement to
acquire Innovia for approximately EUR810 million (approximately
$850 million) from current owner Arle Capital. The purchase
consideration is expected to be funded by a mix of cash on hand
and available debt facilities.

The transaction is credit positive for Innovia. Moody's considers
the acquisition as strategically important for CCL as it will
gain access to Innovia's technological capabilities and will
introduce the company to polymer banknote substrate end markets,
where the combined group will seek growth opportunities.

Moody's review for upgrade of the outstanding senior secured
notes was also prompted by the high likelihood of a mandatory
repayment as a result of the acquisition and the exercise of the
change of control provision.

Moody's expects the review to be completed shortly after
completion of the transaction, which, as detailed, is expected to
close within the first quarter of the calendar year in 2017,
subject to regulatory approval and closing conditions.

WHAT COULD CHANGE THE RATING UP/DOWN

Prior to placing the ratings on review, Moody's stated that
upside potential could build if Innovia can sustainably achieve
another step-change in credit quality evidenced by stability of
operating and financial performance through the cycle and by
further expanding its business profile. In terms of credit
metrics, positive pressure on the ratings could develop if
Innovia's debt/EBITDA ratio (as adjusted by Moody's) falls
comfortably below 3.0x and if its FCF/debt ratio is well above
10%

Negative pressure on the ratings could occur if Innovia's
debt/EBITDA ratio increases materially above 4.0x or if its free
cash flow to debt falls towards 5%. A deterioration in liquidity
could also have negative pressure on the rating.

PRINCIPAL METHODOLGY

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

Innovia group is a UK-based manufacturer of biaxially oriented
polypropylene (BOPP) films for labels, cigarette pack overwrap
and food packaging. The group also produces polymer substrates
for banknotes through Innovia Security. In the last twelve months
to 30 September 2016, Innovia reported sales of EUR474 million
(including the Cellophane business whilst owned).


NESS CLOTHING: In Administration, 105 Jobs at Risk
--------------------------------------------------
Jonathan Brocklebank at Daily Mail reports that Ness Clothing
went into administration on Dec. 23, putting 105 jobs at risk.

According to Daily Mail, Ness Clothing, which has ten stores in
Scotland, five in England and four concessions, will keep trading
as joint administrators try to sell the company.

Business restructuring partners James Stephen --
james.stephen@bdo.co.uk -- and Matthew Tait --
matthew.tait@bdo.co.uk -- of BDO LLP have been appointed joint
administrators, Daily Mail relates.

"Notwithstanding the improving sales trend, with like-for-like
sales up 12 per cent over the last 12 months, the company
experienced working capital difficulties," Daily Mail quotes
Mr. Stephen as saying.

"Nevertheless, Ness is a unique brand and a highly popular
shopping destination for its loyal customer base, in towns across
Scotland and England.  We are confident of securing a sale of the
company as a going concern.

"We have already received expressions of interest and we
encourage other interested parties to come forward.

"The company will continue to trade while a sale is explored and
all stores will remain open."

Ness Clothing is a Scottish fashion chain.  The firm, which has
its headquarters in Edinburgh, is an independent women's fashion
and accessories label.


NIELSEN HOLDINGS: Tribune Deal is Credit Negative, Moody's Says
---------------------------------------------------------------
Moody's Investors Service said Nielsen Holdings plc's Ba3
Corporate Family Rating (CFR) and its other existing ratings are
not immediately impacted by the company's announcement that it
has entered into an agreement to acquire Tribune Media Company's
digital and data segment assets (a/k/a "Gracenote") for $560
million in cash.


TITAN EUROPE 2006-5: Moody's Affirms Caa2 Rating on Cl. X Notes
---------------------------------------------------------------
Moody's Investors Service has downgraded the rating of one class
and affirmed two classes of Notes issued by Titan Europe 2006-5
p.l.c.

Moody's rating action is as follows:

Issuer: Titan Europe 2006-5 p.l.c.

  EUR112.3M A2 Notes, Downgraded to Caa3 (sf); previously on
  Jan 29, 2015 Affirmed Caa1 (sf)

  EUR330M A1 Notes, Affirmed B1 (sf); previously on Jan 29, 2015
  Downgraded to B1 (sf)

  EUR0.05M X Notes, Affirmed Caa2 (sf); previously on Jan 29,
  2015 Affirmed Caa2 (sf)

Moody's does not rate the Class A3, B, C, D, E, F and Class V
Notes.

RATINGS RATIONALE

The downgrade action reflects Moody's increased loss expectation
for Class A2 Notes since its last review due to the retention of
EUR50 million by the cash manager at the October IPD. The funds
from the repayment of the Hotel Adlon loan were retained at the
direction of the Note Trustee in order to provide for potential
liabilities of the Issuer arising from contentions of the legal
proceedings of the Class X noteholders in certain other
transactions of the Titan program. The details are explained in
the special notice dated 28 November 2016. Moody's previously
expected the EUR50 million to be applied to the repayment of the
Class A1 Notes and it anticipates significant volatility
surrounding recovery amounts of the retained funds.

Additionally there is high uncertainty around the recoveries for
the Quartier 206 Shopping Centre Loan due to the lengthy workout
period and potential further legal steps by the borrower. Further
delays to the workout process will lead to higher accrued
interest amounts which could impact ultimate recoveries.

The rating on the Class A1 Notes is affirmed based on its current
credit enhancement level of 64%, which is sufficient to maintain
the rating despite the increased loss expectation for the pool.
The rating reflects the high likelihood that interest shortfalls
will resume before the tranche is fully redeemed. The deferred
interest for this class was fully repaid at the October 2016 IPD.
On the January 2015 IPD, no interest was paid to the Class A
noteholders constituting a technical Note Event of Default
(NEoD).

The rating on the Class X Notes is affirmed because the current
rating is commensurate with the updated risk assessment. The
Class X Notes reference the underlying loan pool. As such, the
key rating parameters that influence the expected loss on the
referenced loan pool also influences the ratings on the Class X
Notes. The rating of the Class X Notes is based on the
methodology described in Moody's Approach to Rating Structured
Finance Interest-Only Securities published in October 2015.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was Moody's
Approach to Rating EMEA CMBS Transactions published in November
2016. Please see the Rating Methodologies page on www.moodys.com
for a copy of this methodology.

Other factors used in this ratings are described in European
CMBS: 2016-18 Central Scenarios published in April 2016.

Factors that would lead to an upgrade or downgrade of the
ratings:

Main factors or circumstances that could lead to a downgrade of
the ratings are generally (i) a decline in the property values
backing the underlying loans or (ii) a lower than expected
recovery amount of the retained funds.

Main factors or circumstances that could lead to an upgrade of
the ratings are generally (i) an increase in the property values
backing the underlying loans or (ii) a higher than expected
recovery amount from the retained funds.


WATERSIDE SPORTS: Closes Doors Due to Financial Problems
--------------------------------------------------------
Chris Yandell at Daily Echo reports that a club with about 1,000
members has sent shockwaves through a Hampshire community by
closing its doors after more than 60 years.

The Echo says the Waterside Sports and Social Club, originally
set up for staff at Fawley refinery in the early 1950s, has
folded following the failure of a financial rescue plan.

Based in an old cinema in Long Lane, Holbury, the club provided a
raft of activities for people living in the area, the report
says.

According to the report, insiders said it had debts of about
GBP160,000 and had ceased trading with the loss of several jobs
after being declared insolvent.

The Echo relates that the decision was taken at an emotional
meeting of members -- some of whom are said to have been in
tears.

A statement issued by the club's directors praised the staff for
supporting it through difficult times and described the decision
to close it just before Christmas as "heartbreaking," the report
relays.

"It is with great sadness that our wonderful club was forced to
close its doors to our members and staff following the failure of
a financial recovery plan.

"To have continued under these circumstances would have meant we
were breaking the law by trading whilst insolvent."


* UK: Cashflow Problems Affect Nearly 40% Small Businesses
----------------------------------------------------------
Blue & Green Tomorrow reports that four-in-ten (38%) small and
medium-sized businesses (SMEs) have suffered cashflow problems
over the past two years, according to new research by Amicus
Commercial Finance, the specialist lender of flexible working
capital to SMEs. The figure rises to two-thirds (65%) among
medium-sized firms with between 50 and 250 staff.

Blue & Green Tomorrow, citing a study conducted among 500 small
businesses owners, relates that over the past two years one-in-
seven (15%) are still suffering liquidity problems and 12% either
came close to or became insolvent. Small businesses recognise the
threat cashflow problems can pose; nearly three-quarters (71%)
say it is the biggest risk they face, the report relates.

On a sector basis, 35% of finance and accounting firms report
that are affected by cashflow problems. Regionally, companies in
the North East have been the worst hit by cashflow shortages.

According to the report, the biggest challenge caused by cashflow
shortages is paying suppliers, cited by 41% of business owners.
This is followed by meeting debt repayments (30%), buying
inventory (29%) and paying staff (24%). One-in-five (18%) said
they had lost contracts due to cashflow problems.

Amicus Commercial Finance provides a revolving working capital
facility based on a proprietary invoice discounting platform
which utilises the latest available technology and data
extraction methodology. The firm's proposition has proved to be
very attractive to a broad range of businesses with a turnover
between GBP1 million and GBP20 million.



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


ASIA ALLIANCE: Moody's Hikes LT LC Deposit Ratings to B2
--------------------------------------------------------
Moody's Investors Service has upgraded the long-term local and
foreign-currency deposit ratings of Asia Alliance Bank to B2 from
B3. At the same time the rating agency has also upgraded the
bank's baseline credit assessment (BCA) / adjusted BCA to b2 from
b3, its long-term Counterparty Risk Assessment (CR Assessment) to
B1(cr) from B2(cr) and affirmed short-term local- and foreign-
currency deposit ratings of Not-Prime and its short-term CR
Assessment of Not-Prime(cr).

Outlook on all long term Bank Deposit ratings is stable.

RATINGS RATIONALE

The upgrade of Asia Alliance Bank's ratings with a stable outlook
is driven by the recent improvements in the bank's risk profile
and reflects the bank's (1) reduced appetite for credit risk; (2)
track record of strong financial performance; (3) growing
business diversification and strengthening business franchise and
(4) Moody's expectation of gradual diversification of Asia
Alliance Bank's highly concentrated funding base.

In 2011-2014, Asia Alliance Bank demonstrated high appetite for
credit risk evidenced by its aggressive business expansion, which
was the key factor constraining the ratings in recent years. Over
the past two years, the bank has significantly reduced its risk
appetite and its lending growth will likely be in line with the
system average growth going forward, supporting the bank's risk
profile.

Moody's rating upgrade also takes into account the good quality
of the bank's loan book (the problem loan ratio has consistently
been below 1% of gross loans) and Moody's expects the bank's
asset quality to remain solid over the next 12-18 months
supported by the bank's significant credit exposure on state-
controlled borrowers and private companies with good credit
profiles.

Asia Alliance Bank continues to maintain strong capital ratios,
As of September 30, 2016, Asia Alliance Bank reported Tier 1
ratio (Basel I, reported under IFRS) of 23.4% up from 20.76%
reported at year-end 2015. Moody's expects the bank to maintain
healthy capital position supported by its good internal capital
generation.

Asia Alliance Bank reports a stronger (compared to B3/B2-rated
banks) profitability metrics owing to the bank's good access to
low cost corporate deposits, limited reliance on expensive retail
deposits; its robust fee-generating capacity and operating
efficiency.

For 9M 2016, Asia Alliance Bank reported net profit of UZS 29
billion, which translates into a high annualized return-on-
average assets of 3.6% (3.9% in 2015 and 4.5% in 2014). The
bank's financial results in 2015-2016 were supported by a
significant increase of net interest income driven by a larger
income stream and lower funding cost.

Asia Alliance Bank's funding profile remains a key constraining
factor for its ratings given its high concentration with its five
largest customers accounting for 37% of total liabilities. To
date, the depositors proved to be `loyal' to the bank and its
high funding concentration is partly mitigated by an ample
liquidity cushion (cash and interbank placements amounted to 53%
and 43% of total assets as of January 1, 2016 and  June 1, 2016,
respectively).

WHAT COULD MOVE THE RATINGS UP/DOWN

A longer track record of improving its risk profile, reduced
funding concentration, sustained good loss absorption capacity
along with strengthening and diversification of its business
franchise could lead to an upgrade of Asia Alliance Bank's BCA
and long-term ratings. At the same time, negative pressure could
be exerted on the bank's ratings in case of significant
deterioration of its asset quality and/or liquidity from current
levels or if Asia Alliance Bank resumes its rapid growth.

PRINCIPAL METHODOLOGY

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

Headquartered in Tashkent, Uzbekistan, Asia Alliance Bank
reported total audited IFRS assets of US$377 million and total
shareholders' equity of US$68 million as at June 30, 2016.


KAFOLAT JSC: Fitch Assigns 'B+' IFS Rating, Outlook Stable
----------------------------------------------------------
Fitch Ratings has assigned JSC Insurance Company Kafolat an
Insurer Financial Strength (IFS) Rating of 'B+'. The Outlook is
Stable.

KEY RATING DRIVERS

The rating reflects Kafolat's state ownership, the company's
strong operating profile, its relatively strong capital position
and positive profitability. The rating is negatively impacted by
reserving risk and the relatively low quality of the insurer's
investment portfolio.

The state and state-owned companies hold a combined 93% interest
of Kafolat. Of this, 66.51% was held by The Ministry of Finance
at end-9M16. Another 11.72% and of 7.77% are held by the National
Bank of External Economic Activity and by a state-owned mining
company Navoi Mining and Mettalurgical Combinat. The remaining
shareholders, which hold a combined 14% of shares of the company,
have stakes of less than 3% each. The Uzbek state provided
relatively strong support for the state-owned companies via
considerable capital injections in previous years, which allowed
the companies to form a sound capital base and to adapt to
growing business volumes.

Kafolat's capitalisation is supportive of the rating. According
to Fitch's Prism factor-based capital model, Kafolat's risk-
adjusted capital score was 'very strong' based on 2015 results.
The insurer nominally maintains sufficient capital relative to
its business volumes with a Solvency I-like statutory ratio of
317% at end-9M16.

Kafolat's capital could be exposed to the risk of reserving
deficiency for the workers compensation line. The long-tail
nature of the risk and the absence of the government guarantees
on such risk, plus regulation of tariffs and sums insured
significantly increase the reserving risk on this line. Kafolat
does not test the sufficiency of this reserve in a run-off
scenario, as this is not required by the regulator.

In Fitch's view, Kafolat's investment portfolio is of low
quality. This reflects the average credit quality of bank
deposits, which accounted for 53% of the company's total
investment portfolio at end-2015. Local banks are mainly
constrained by sovereign risks and rated in the 'B' category.
Furthermore, Kafolat's ability to achieve greater diversification
is limited by the narrow local investment market.

Kafolat has been profitable in the last two years. Net profit has
been earned through investment, which considerably offset its
volatile underwriting performance in 2011-2015. The net result in
2015 was robust with a return on equity (ROE) of 12.1%, albeit
down from 18.6% in 2014.

Despite double-digit growth of gross written premium (GWP) in
2015 an increase in administrative expenses weakened the combined
ratio to 97% (2014: 86%). The administrative expense ratio
increased to 59.9% in 2015 from 50.6% in 2014. Fitch believes
that a reduction in administrative costs is an important area of
focus for Kafolat, which would be beneficial for its financial
performance and earnings.

Kafolat's underwriting result for compulsory lines benefited from
a strong loss ratio of 23.2% in 2015 (2014: 23.1%). Apart from
compulsory lines, Kafolat writes a range of voluntary lines,
which include property and liability, health and accident
insurance, financial risks and export risks. Property insurance
accounted for 30% of net written premiums in 2015, with a loss
ratio of 15.1% (2014: 4.3%).

Kafolat is the third-largest insurer in Uzbekistan by GWP, with
10.5% of the market in 2015. Unlike that of the sector,
compulsory lines have dominated Kafolat's business mix,
accounting for 69% of GWP in 2011-2015.

RATING SENSITIVITIES
A change in Fitch's view of the financial condition of the
Republic of Uzbekistan or a significant change in the insurer's
relations with the government would likely have a direct impact
on Kafolat's ratings.

Sustained reserving deficiencies leading to operational losses or
capital depletion could also lead to a downgrade.


                            *********

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

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

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


                            *********


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

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

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

This material is copyrighted and any commercial use, resale or
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re-mailing and photocopying) is strictly prohibited without prior
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Information contained herein is obtained from sources believed to
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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.


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