TCREUR_Public/170118.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

         Wednesday, January 18, 2017, Vol. 18, No. 13


                            Headlines


B E L G I U M

FEATHER BIDCO: Moody's Rates EUR505MM New Sr. 1st Lien Loan (P)B1


F R A N C E

SPIE SA: Moody's Affirms Ba3 Corp. Family Rating, Outlook Stable


G E R M A N Y

HAPAG-LLOYD: Moody's Assigns Caa1 Rating to EUR150MM Unsec. Notes
KUKA AG: Moody's Withdraws Ba1 Corporate Family Rating


I R E L A N D

ALPSTAR CLO 2: S&P Raises Rating on Class E Notes to 'BB'


I T A L Y

BUZZI UNICEM: S&P Revises Outlook to Pos. & Affirms 'BB+/B' CCRs
MONTE DEI PASCHI: Chief Executive Draws Up New Business Plan


N E T H E R L A N D S

BABSON EURO 2014-1: Fitch Assigns 'B-' Rating to Class F Notes
BABSON EURO 2014-1: Moody's Reviews B2 Rating on Class F Notes
NXP SEMICONDUCTORS: Egan-Jones Hikes Sr. Unsecured Ratings to BB


N O R W A Y

FARSTAD SHIPPING: Upholds Suspension of Financial Debt Service


P O R T U G A L

BANCO COMERCIAL: S&P Puts 'B+' Rating on CreditWatch Positive


R U S S I A

O'KEY GROUP: Fitch Affirms 'B+' Long-Term IDR, Outlook Stable
YUKOS: Moscow's Lawyers Seek Quick Resolution of Appeals Case


S P A I N

CATALONIA: Fitch Affirms 'BB' Long-Term IDR, Outlook Negative
FTPYME BANCAJA 6: Fitch Withdraws 'Dsf' Rating on Class D Notes
ZED+: Dutch Corporate Lawyer Arrested in Insolvency Probe


U K R A I N E

PLATINUM BANK: MP Sees Collapse as Political Bankruptcy of Pres.


U N I T E D   K I N G D O M

AI MISTRAL: S&P Assigns Preliminary 'B' CCR, Outlook Stable
GAT FTGENCAT 2006: Fitch Withdraws 'D' Cl. E Notes Rating
NEMEAN BIDCO: S&P Assigns 'B+' Counterparty Credit Rating

* UK: Number of Insolvent Scottish Businesses Up 7% in 2016


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B E L G I U M
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FEATHER BIDCO: Moody's Rates EUR505MM New Sr. 1st Lien Loan (P)B1
-----------------------------------------------------------------
Moody's Investors Service assigned a provisional (P)B1 instrument
rating to the proposed EUR505 million Senior Secured First-Lien
Term Loan B, due 2024, and to the EUR125 million Revolving Credit
Facility (RCF), due 2023, as well as a (P)Caa1 instrument rating
to the proposed EUR130 million Senior Secured Second-Lien Term
Loan, due 2025, which are expected to be issued by Feather Bidco
Limited, a newly incorporated entity to support the company's
acquisition by funds controlled by CVC Private Equity. The
outlook on all aforementioned instrument ratings is stable. The
net proceeds for the transaction will be used to effect full
repayment of the existing First-Lien and Second-Lien Term Loan,
the existing RCF and acquisition facility borrowed by Alu Holdco
2 Limited, and to fund the equity purchase price.

At the same time, Moody's has placed all ratings of Alu Holdco 1
Limited, current parent and holding company of Corialis, under
review for downgrade, including its B1 corporate family rating
(CFR) and B1-PD probability of default rating (PDR).

Should the contemplated acquisition of Corialis by Feather Bidco
Limited conclude as envisaged, Moody's would expect to downgrade
the CFR to B2 from B1, with a stable outlook. The downgrade is
principally due to the anticipated increase in Moody's adjusted
leverage from 4.4x as at LTM September 2016 to an expected FY2016
adjusted leverage of 6.2x, pro forma for the transaction, thus,
exceeding our current downward rating trigger. To reflect the new
corporate structure, Moody's would move the CFR from Alu Holdco 1
Limited to Feather Investments Holdings S.C.A. Upon full
repayment, Moody's will withdraw the Ba3 instrument ratings on
the existing EUR318 million Senior Secured First-Lien Term Loan,
EUR25 million RCF, and EUR35 million Acquisition facility, and
the B3 instrument rating on the existing EUR105 million Second-
Lien Term Loan. The transaction is expected to close in March
2017 subject to approval by competition authorities.

Moody's issues provisional ratings in advance of the final sale
of securities. Upon closing of the transaction and a conclusive
review of the final documentation, Moody's will endeavour to
assign definitive ratings. A definitive rating may differ from a
provisional rating.

RATINGS RATIONALE

Corialis' rating reflects the company's: (1) strong market
position as one of the leading aluminium profile system
manufacturers in Europe, with geographically diversified
operations; (2) exposure to the more stable affluent end-customer
and renovation markets; (3) very strong recent financial
performance supported by the EBITDA growth in UK and Polish hubs;
(4) high barriers to entry from vertically integrated production
and loyal customer base and (5) future sales performance
supported by expected aluminium penetration growth.

However, the rating is constrained by (1) the company's exposure
to the inherently cyclical building industry and the uncertain
impact of Brexit on the UK construction market; (2) expected
increased financial leverage of 6.2x pro forma for the LBO by
CVC; (3) strong competitive environment with top 4 players
consolidating the European market and (4) exposure to volatility
of aluminium prices and to a -- lesser extent -- fluctuations in
foreign exchange rates (GBP).

We view Corialis' near-term liquidity position as good. Pro forma
for the CVC LBO at the end of March 2017, there will be no cash
left on the balance. Additional liquidity for working capital,
capex funding for the new hubs in the Balkans and South Africa
and acquisitions is available from a EUR125 million RCF.

The debt structure is covenant-lite, but benefits from one
springing maintenance covenant tested when the RCF is drawn.

RATING OUTLOOK

The ratings are under review for downgrade in anticipation of the
company's acquisition by funds controlled by CVC Private Equity.

WHAT COULD CHANGE THE RATING -- UP/DOWN

In light of the action, Moody's anticipates negative rating
pressure following the satisfactory review of the final capital
structure. Moody's current expectation is that the CFR will be
downgraded to B2 from B1.

PRINCIPAL METHODOLOGY

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

CORPORATE PROFILE

Corialis is one of the European leaders in the design and
manufacturing of aluminium profile systems for windows, doors,
roof systems and curtain walls. The company extrudes, insulates
and paints aluminium profile systems and distributes to local
fabricators and installers servicing the residential market
(estimated 60% of FY2015 sales) and non-residential market (40%).
Founded in 1984 and headquartered in Belgium, the company today
operates in 20 European countries through four hubs in Belgium,
France, Poland and the UK. In FY2016, the company is expected to
report sales and EBITDA of EUR426 million and EUR99 million,
respectively, and employed approximately 1,800 full-time
employees. In 2017, funds controlled by CVC Private Equity
together with management acquired 100% of the shares from Advent
Private Equity.



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SPIE SA: Moody's Affirms Ba3 Corp. Family Rating, Outlook Stable
----------------------------------------------------------------
Moody's Investors Service has affirmed the Ba3 corporate family
rating of SPIE SA's (Spie), a leading European multi-technical
business services provider. The rating outlook is stable.

On December 23, 2016, Spie announced that it signed an agreement
to acquire SAG GmbH (SAG, unrated) for EUR460 million using the
proceeds from a EUR600 million newly arranged bridge loan
(unrated). Spie expects to complete the acquisition in the first
or second quarter of 2017, subject to customary regulatory
approvals.

The rating action reflects the following inter-related drivers:

-- Moody's estimates that Spie's leverage, as measured by
    Moody's-adjusted debt/EBITDA, is high at 5.3x at closing of
    SAG's acquisition compared to 4.5x for the last twelve months
    to June 30, 2016 (LTM-June 2016)

-- Moody's expects that Spie's leverage will decrease to 4.9x by
    the end of 2017 on the back of acquisition synergies, low-
    single-digit revenue growth, and improving product mix

RATINGS RATIONALE

"The acquisition of SAG makes strategic sense for Spie because it
enhances its position as a leading European multi-technical
business services provider, it increases its scale in terms of
revenue, slightly improves its EBITDA margin, and follows a
successful integration of the facilities management business
acquired from Hochtief in Germany in 2013. It also rebalances its
relative exposure towards Germany with a faster growing multi-
technical business services market and reduces its relative
exposure to France, where the multi-technical business services
market has been challenged by public funding reductions over
recent years", says Andrey Bekasov, AVP and the lead analyst for
Spie. "We include the whole amount of to-be-assumed pension
liabilities in our debt calculations and therefore Spie's
leverage notably increases to 5.3x. However, we expect that the
company will be able to delever to below 5.0x by the end of 2017
therefore we maintain the stable outlook", adds Andrey.

Spie's Ba3 corporate family rating (CFR) reflects: (1) the
positive growth dynamics dominating the technical services
industry; (2) Spie's position as a leading independent multi-
technical service provider; (3) its recurring revenues from a
large number of small contracts leading to stable financial
performance in the past; (4) good customer diversification; and
(5) steady cash flow generation underpinned by negative working
capital needs and the business's low capital intensity leading to
expected deleveraging on a net debt basis.

Conversely, the rating reflects: (1) the company's high opening
leverage of 5.3x pro forma for the acquisition of SAG; (2)
intense competition in the fragmented multi-technical services
market, including larger providers, leading to pricing pressure;
(3) exposure to construction and renovation demand; (4)
cyclicality of the Oil & Gas segment and headwinds in its French
market driven by lower public spending; (5) ongoing growth
strategy through acquisitions, which may delay deleveraging.

Moody's expects that pro forma for the acquisition of SAG, Spie's
liquidity will remain good, supported by: (1) positive expected
free cash flows (despite a 40% dividend payout) supported by good
EBITDA cash conversion, structurally negative working capital,
and low capital intensity with maintenance capex of less than 1%
of revenues; (2) no scheduled debt amortizations till 2020
(Moody's assumes that the EUR600 million bridge loan will be
refinanced by the end of 2017); (3) cash and cash equivalents of
around EUR600 million; (4) a EUR400 million revolving credit
facility (RCF), of which EUR250 million was undrawn as of 30 June
2016; and (5) Moody's expectation that Spie will maintain good
headroom under its single financial maintenance covenant in
accordance with the senior bank credit facilities agreement.

RATING OUTLOOK

The stable outlook reflects Moody's expectation of the business
continuing to delever at a steady pace, despite the acquisition
growth strategy.

WHAT COULD CHANGE THE RATING UP/DOWN

Although an upgrade is unlikely in the next 12-18 months,
positive rating pressure could arise if:

Spie's leverage, as measured by Moody's-adjusted debt/EBITDA,
were to decrease below 4.0x on a sustainable basis; and

RCF/Net debt ratio were to increase above 17%.

Conversely, negative pressure could arise if:

Spie's leverage, as measured by Moody's-adjusted debt/EBITDA,
were to fail to decrease below 5.0x on a sustainable basis;

RCF/Net debt ratio were to decrease below 10%; or

Any significant debt-financed acquisition were to put negative
pressure on credit metrics

The principal methodology used in this rating was Business and
Consumer Service Industry published in October 2016.

SPIE SA (Spie), headquartered in Paris, France, is a leading
independent European multi-technical services provider in the
areas of electrical and mechanical services (44% of revenues in
2015), technical facility management (34%), and information and
communications technology services (22%). Spie's revenue is
around EUR6.5 billion pro forma for the acquisition of SAG GmbH.
Spie has been listed on the Euronext Paris stock exchange since
11 June 2015.



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G E R M A N Y
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HAPAG-LLOYD: Moody's Assigns Caa1 Rating to EUR150MM Unsec. Notes
-----------------------------------------------------------------
Moody's Investors Service assigned Caa1 rating to the proposed
EUR150 million senior unsecured notes due 2022 issued by Hapag-
Lloyd AG (Hapag-Lloyd). Hapag-Lloyd's corporate family rating
(CFR) of B2 and Probability of Default Rating (PDR) of B2-PD are
unchanged. The outlook is stable.

Hapag-Lloyd plans to use the proceeds from the proposed issuance
to partially refinance its existing USD125 million senior
unsecured notes due 2017.

RATINGS RATIONALE

The assignment of a Caa1 rating to Hapag-Lloyd's proposed senior
unsecured notes due 2022, which is two notches lower than the
company's B2 CFR, reflects not only their pari passu ranking with
all other unsecured indebtedness issued by Hapag-Lloyd, but also
their contractual subordination to the secured debt existing
within the group. The combination with United Arab Shipping
Company (UASC) adds both senior secured (vessel financing) and
senior unsecured (corporate financing) debt, which maintains the
two-notch differential between the B2 CFR and the Caa1 rating of
the notes.

Hapag-Lloyd's B2 CFR also continues to reflect (1) the
environment in which the company operates, characterised by high
competition, which limits operators' ability to recover operating
costs, and the reliance of the container shipping segment on
short-term contracts, which limits market visibility; (2)
historically low freight rates (excluding bunker costs) which
have been in decline for several years due to overcapacity until
showing a slight improvement recently and leading to persistently
low single digit EBIT margin and (3) adjusted gross debt/EBITDA
of approximately 6.6x pro-forma for UASC for the twelve months
ending 30 September 2016 including standard Moody's adjustments.

The rating also takes account of (1) the company's good business
profile, thanks to its top five market position across different
routes globally and significant scale with $7.3 billion in
revenues (pro-forma for UASC for the nine months ending 30
September 2016); (2) the flexibility of its fleet (due to the
high number of chartered vessels that could be redelivered in the
next 12 months); and (3) Hapag-Lloyd's adequate liquidity and
good headroom under the company's financial covenants.

On July 18, 2016, Hapag-Lloyd and UASC announced that they had
signed a Business Combination Agreement (BCA) to merge the
operations of both companies, subject to the necessary regulatory
and contractual approvals. The agreement is such that Hapag-
Lloyd's current shareholders will have a 72% stake in the
combined entity while UASC's shareholders (which include Qatar
Holding and the Public Investment Fund of Saudi Arabia) will have
a 28% stake. UASC's container shipping activities will be
integrated into the Hapag-Lloyd organization, which will remain
headquartered in Hamburg.

The transaction will create a bigger player in the container
shipping segment with a capacity of 1.5 million TEU. Hapag-Lloyd
will benefit from UASC's younger fleet and, on average, larger,
more efficient vessels which include fifteen owned vessels with
capacity between 15,000 and 19,000 TEU (as of 30 September 2016)
which are complementary to the company's existing fleet. The
combination would, in particular, strengthen Hapag-Lloyd's
position in the Middle East and Far East, where UASC has a
stronger presence, allow for cost synergies estimated by the
company of at least $435 million and substantially reduce the
company's future capital expenditure.

However, the combination entails some integration risks. In
particular, the improvement in EBITDA of the combined entity is
premised primarily on $435 million pro-forma run rate network and
overhead synergies from 2019 onwards, of which only one third
will be achieved in 2017 after one-off costs of approximately
$150 million.

Whilst UASC brings a complementary and young fleet to the group,
it will also result in the consolidation of approximately $4.0
billion of debt incurred by the company to build its fleet. As a
result, the rating agency estimates Moody's-adjusted debt/EBITDA
at around 6.7x as of 31 December 2016 from 4.3x as of 31 March
2016. This ratio is high for the B2 category although the rating
agency expects it to reduce over time through synergies. In
addition the company has a stated financial policy of reducing
the reported net leverage to around 3.5x which, in Moody's view,
will also be dependent on the evolution of market conditions in
the container shipping segment which remain challenging.

Moody's positively notes that Hapag-Lloyd has recently
successfully integrated another company, CSAV, the results of
which saw the company outperform initially targeted synergies by
$100 million to total of $400 million p.a. In addition, certain
key shareholders of Hapag-Lloyd and UASC have committed to
backstopping a $400 million rights offering, which will
strengthen the liquidity of the combined entity.

Moody's expects that the merged company will have a satisfactory
liquidity profile underpinned by (1) cash balances in excess of
$1 billion; (2) access to over $460 million of revolving credit
facilities (approximately $135 million undrawn as of 30 November
2016); (3) comfortable leeway under the financial covenants; and
(4) proceeds of the $400 million rights offering backstopped by
the shareholders.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook mainly reflects Moody's expectations of
increased leverage immediately following the UASC transaction
combined with still weak freight rate environment. The rating
agency views Hapag-Lloyd as weakly-positioned within the B2
rating category as the firm will need at least several quarters
to strengthen its credit profile and bring leverage below 6.0x
once the UASC fleet is integrated.

WHAT COULD CHANGE THE RATING UP/DOWN

Positive rating pressure could arise if Hapag-Lloyd were to
demonstrate (1) a reduction in Moody's-adjusted debt/EBITDA below
5x on a sustainable basis; and (2) an increase in its (funds from
operations (FFO) + interest expense)/interest expense above 3x on
a sustainable basis.

Negative rating pressure could arise if Hapag-Lloyd's leverage
increases above 6x for a prolonged period of time or (FFO +
interest expense)/interest expense declines below 2x. A rating
downgrade could follow if the business environment continues to
deteriorate, if the company does not proceed with the planned
$400 million rights offering, or if there is any pressure on
Hapag-Lloyd's liquidity profile.

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was Global Shipping
Industry published in February 2014.

Headquartered in Hamburg, Germany, Hapag-Lloyd AG is the largest
container liner shipping company in Germany and one of the
biggest worldwide based on global market coverage. At 30
September 2016, Hapag-Lloyd operated a fleet comprising 166
container ships with a capacity of 0.9 million TEU, and recorded
a turnover of EUR7.7 billion on a last-12-months basis.


KUKA AG: Moody's Withdraws Ba1 Corporate Family Rating
------------------------------------------------------
Moody's Investors Service upgraded the rating of German-based
robot-supported automation company KUKA AG, assigning a long-term
issuer rating of Baa3. The outlook is stable. Concurrently
Moody's also withdrew KUKA's corporate family rating (CFR) of Ba1
and probability of default rating (PDR) of Ba1-PD following the
assignment of an issuer rating of Baa3 as per the rating agency's
practice for corporates with investment grade ratings.

"Triggered by the completion of its takeover by Midea, our
upgrade of KUKA to investment grade acknowledges it's
consistently solid performance and strong capital structure as
well as our expectation that the company's performance in China
may benefit from the Chinese ownership", said Oliver Giani,
Moody's lead analyst for KUKA. "In addition, the rating
incorporates expectations of some parental support from Midea if
needed", he added.

RATINGS RATIONALE

The upgrade was prompted by the successful closure of the tender
offer made by Midea Group Co., Ltd. (Midea, A3 stable) in June
2016. With 94.55% of KUKA shares now owned by Midea, KUKA becomes
an integral part of Midea group enabling the extension of its
automation strategy and complementing Midea's development of
intelligent home systems. Given the strategic importance of KUKA
for Midea and taking into account the sizeable investment made
for this acquisition, Moody's also factors in some degree of
parental support in its rating in case of need.

KUKA's Baa3 issuer rating recognizes its (1) market leadership
positions in its niche markets, as evidenced by the company's
leading positions in robotics for the automotive industry
worldwide and in systems (body-in-white) in the US; (2) strong
balance sheet with debt/EBITDA (Moody's adjusted) of 2.0x and
retained cash flow/net debt (Moody's adjusted) of around 40% for
the 12 months to September 2016; (3) good order backlog of nearly
EUR2.2 billion as of end-September 2016 at group level providing
good visibility for KUKA's revenues in the next 12 months; (4)
technology leadership and long-standing customer relationships;
(5) strategy and measures to improve the diversification of its
business, whilst maintaining a strong balance sheet and healthy
liquidity; and (6) the majority ownership by Midea, which is
solidly positioned in the A3 rating category. This should support
KUKA in its efforts to expand in the sizeable Chinese market, and
in its efforts to reduce its dependency on the automotive
industry by entering other market segments such as consumer goods
in the case of Midea.

KUKA's rating is primarily constrained by its (1) exposure to the
automobile industry's inherent cyclicality, which can cause
volatile operating profits and cash flow generation through-the-
cycle; (2) albeit improving, still fairly high concentration in
terms of customers, end-markets and geographies; and (3) mixed,
but improving, track record of positive free cash flow (FCF)
generation in the last couple of years; (4) still somewhat modest
scale (around EUR3 billion revenues) and limited, although
improved, product diversification.

Moody's views KUKA's liquidity profile over the next 12-18 months
as good, benefitting from around EUR342 million of cash on
balance sheet as of end-September 2016. The cash balances are
further underpinned by a partially undrawn EUR200 million
revolving credit facility, due in March 2021 (with one year
extension option) and subject to two covenants, both currently
with ample headroom. Moody's expects that KUKA will return to
positive free cash flow generation in total for the next 12-18
months, but the rating agency cautions about an element of
unpredictability of working capital movements, in particular with
regards to receivables and payables from construction contracts
related mainly to projects in the Systems business that can be
sizable and volatile. There are no material debt maturities in
the next 12-18 months.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's expectation that KUKA will be
able to further strengthen its strategic position in China as
well as to further increase its industrial diversification while
retaining its conservative capital structure with debt/EBITDA
(Moody's adjusted) at around 2.0x and returning to a positive
free cash flow generation in the next 12-18 months. Additionally,
Midea's strongly positioned A3 rating, the majority ownership of
94.55%, the strategic rationale of the transaction for Midea as
well as potential for cost synergies indicate strong willingness
and financial capability for potential support from Midea support
the Baa3 rating assigned.

WHAT COULD CHANGE THE RATINGS UP/DOWN

The rating agency could upgrade KUKA's ratings, if KUKA is able
to reduce leverage, as adjusted by Moody's below 2.0x debt/EBITDA
even in an adverse economic environment, while further
diversifying its end markets exposure. An upgrade would also
require return to a sustainable material positive free cash flow
generation and improvement of profitability to at least 7% EBITA
margin (Moody's adjusted).

Moody's could downgrade KUKA's ratings if (1) there is evidence
of more aggressive financial policies, as exhibited by
debt/EBITDA (Moody's adjusted) sustainably above 2.5x, (2) free
cash flow remains negative for a prolonged period of time; (3)
its liquidity deteriorates. Likewise, a change in current
ownership could put negative pressure on the rating.

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was Global
Manufacturing Companies published in July 2014.

Headquartered in Augsburg, Germany, KUKA AG focuses on robot-
supported automation of manufacturing processes and is active in
the mechanical and plant engineering sector. After the
acquisition of Swisslog end of 2014 the group now operates under
three divisions: Robotics (roughly 30% of group revenues),
Systems (roughly 50%) and Swisslog (roughly 20%). For the 12
months to September 2016 period, KUKA generated EUR2.8 billion
revenues. KUKA is publicly listed with the major shareholder,
Chinese Midea Group Co, Ltd. (A3 Stable), holding 94.55% of its
shares following the closure of the takeover in January 2017.

LIST OF AFFECTED RATINGS

Assignments:

Issuer: KUKA AG

Issuer Rating, Assigned Baa3

Withdrawals:

Issuer: KUKA AG

Corporate Family Rating, Withdrawn , previously rated Ba1

Probability of Default Rating, Withdrawn , previously rated
Ba1-PD

Outlook Actions:

Issuer: KUKA AG

Outlook, Remains Stable


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ALPSTAR CLO 2: S&P Raises Rating on Class E Notes to 'BB'
---------------------------------------------------------
S&P Global Ratings raised its credit ratings on Alpstar CLO 2
PLC's class B, C, D, and E notes.  At the same time, S&P has
affirmed its 'AAA (sf)' ratings on the class AR, A1, and A2
notes.

The rating actions follow S&P's analysis of the transaction's
recent performance and the application of its relevant criteria.

Since S&P's previous review on Aug. 13, 2015, the senior notes
(the class AR and A1 notes) have amortized by 68% (ignoring the
effect of changes in currency exchange rates).  As a result, all
of the rated notes have benefited from an increase in par
coverage.

S&P has performed a credit analysis on the portfolio by applying
its updated corporate collateralized debt obligation (CDO)
criteria.  S&P subjected the capital structure to its cash flow
analysis to determine the amount of asset defaults that the notes
can withstand and still fully pay interest and principal to the
noteholders.

S&P's expected defaults have remained mainly stable as a
percentage of the portfolio since its previous review.

Elavon Financial Services DAC (AA-/Stable/A-1+) as the account
bank and custodian can support up to a 'AAA' rating in accordance
with S&P's current counterparty criteria.

S&P's analysis shows that the available credit enhancement for
the class B, C, D, and E notes is now commensurate with higher
ratings than those previously assigned.  Therefore, S&P has
raised its ratings on these classes of notes.

S&P's rating on the class E notes is limited to 'BB (sf)' due to
the application of its largest obligor default test.

S&P's analysis also indicates that the available credit
enhancement for the class AR, A1, and A2 notes is commensurate
with the currently assigned ratings.  S&P has therefore affirmed
its 'AAA (sf)' ratings on these classes of notes.

Alpstar 2 is a cash flow collateralized loan obligation (CLO)
transaction that securitizes loans to mainly European
speculative-grade corporate firms and is managed by Chenavari
Financial Group Ltd.  The transaction closed in April 2007 and
its reinvestment period ended in May 2014. At closing, the issuer
entered into a variable funding notes purchase agreement (class
AR), under which it could draw in euro, British pounds sterling,
and U.S. dollars. The portfolio currently includes 16% of non-
euro-denominated assets.

RATINGS LIST

Alpstar CLO 2 PLC
EUR600 mil secured floating-rate notes
                                         Rating
Class            Identifier              To            From
AR               IE00B1VK9082            AAA (sf)      AAA (sf)
A1               XS0291701265            AAA (sf)      AAA (sf)
A2               02109QAB4               AAA (sf)      AAA (sf)
B                XS0291706223            AAA (sf)      AA+ (sf)
C                XS0291711579            AA+ (sf)      A+ (sf)
D                XS0291722006            BBB (sf)      BB+ (sf)
E                XS0291723319            BB (sf)       B+ (sf)


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BUZZI UNICEM: S&P Revises Outlook to Pos. & Affirms 'BB+/B' CCRs
----------------------------------------------------------------
S&P Global Ratings revised its outlook on Italy-based cement
producer Buzzi Unicem SpA to positive from stable.

At the same time, S&P affirmed its 'BB+/B' long- and short-term
corporate credit ratings on Buzzi.  In addition, S&P affirmed its
'BB+' issue ratings on the EUR350 million senior unsecured notes
due 2018 and the EUR500 million senior unsecured notes due 2023
issued by Buzzi.  The recovery ratings on this debt remain
unchanged at '3H'.

Buzzi's solid operating performance benefits from its currently
favorable geographic positioning.  The group posted good results
in both the U.S. and Mexico in the first nine months of 2016,
which together accounted for three-quarters of total EBITDA.  The
completion of capital expenditure (capex) in the U.S. and Mexico
in 2106 and S&P's expectation of still favorable market
conditions in the U.S. should support profitability in these two
countries in 2017.  Buzzi's presence in Central and Eastern
Europe provides stability to the group's performance, in S&P's
view, since it expects the construction industry in the region to
progress modestly over 2017.

At the same time, results continue to be weak in Italy.  The
Italian cement market still has significant overcapacity, and the
presence of a high number of small players has led to a fall in
prices in the past few years.  In the Russian market, S&P expects
both revenues and EBITDA to drop in 2016, due to weak local
trading conditions, but S&P is cautiously positive for 2017,
given the recent oil price increase.

Effective cost management and the low oil price in 2016 has
helped the group to improve its EBITDA margin, which S&P expects
to reach about 23% in 2016, on an adjusted basis, up from 20.6%
in 2015. However, the recent oil price increase will likely limit
any further margin improvement in 2017.

S&P expects its leverage metrics on Buzzi to strengthen further
in 2016 and 2017.  S&P estimates debt to EBITDA of around 2.3x
and funds from operations (FFO) to debt of roughly 30% in 2016,
compared with 2.5x and 28% respectively at end-2015.  The recent
U.S. dollar appreciation may also result in a positive
translation effect in 2017, given that most of the group's debt
is denominated in euros, though the depreciation of the Mexican
peso may partly offset this.

Buzzi's acquisition policy has been fairly prudent in the past,
avoiding a material and permanent weakening of leverage.  In
2015, for example, it decided not to enter into competitive
bidding with Cementir for the acquisition of troubled Italian
company Sacci.

The positive outlook reflects S&P's view that, over the coming 12
months, Buzzi will be able to maintain the strong performance
reported in 2016.  This could result in credit metrics becoming
commensurate with an investment-grade rating over this period.

S&P may upgrade Buzzi by one notch if our core leverage metric
for the company, FFO to debt, improves to comfortably above 30%
over 2017, while adjusted operating cash flow to debt remains
above 25%, and if S&P believes that the group will preserve
leverage at this level for the following few years.  The upgrade
would also require liquidity to remain at least adequate.  S&P
believes this scenario could materialize if the group further
limits its losses in the Italian market, while its other core
markets of the U.S., Mexico, and Germany continue to post at
least a steady performance.  S&P would also expect Buzzi to
maintain its current moderate financial policy in terms of
dividend distribution and acquisitions.

S&P would revise the outlook to stable if the group's performance
in its key markets in 2017 were significantly worse than S&P's
expectations.  The company has wide headroom at the current
rating level, as S&P sees FFO to debt trending below 20% as the
threshold for a downgrade.  As such, a scenario of a downgrade
due to underperformance is unlikely in next 12-18 months.

Any sizable debt-funded acquisitions may lead S&P to revise the
outlook to stable, or could put pressure on the ratings if FFO to
debt were to weaken to the abovementioned threshold.  However, in
such a situation, any tangible benefit to the group's business
risk profile could offset the weakened financial risk profile.


MONTE DEI PASCHI: Chief Executive Draws Up New Business Plan
------------------------------------------------------------
City A.M. reports that the boss of Monte dei Paschi di Siena is
drawing up a new business plan for the troubled lender, with the
aim to get it polished off by February.

Shortly before Christmas last year, the bank's private sector
rescue deal, designed to pump EUR5 billion (GBP4.4 billion) of
capital into the lender's coffers, collapsed after it failed to
get the backing of key investors, City A.M. relates.  It is now
waiting on funding from the government, City A.M. discloses.

According to City A.M., to secure these state funds, the world's
oldest bank will need to present a business plan to European
Central Bank and European Commission.

Italian news outlet Il Sole reported over the weekend that chief
executive Marco Morelli had told concerned unions the new plan
would be ready by next month, while he would be discussing it in
principle with EU regulators shortly, City A.M. relays.

The bank has already had an attempt at drafting a plan for its
future, but it is understood the Italian government told it to
have another go, focusing more on decreasing risk and increasing
profitability, City A.M. notes.

The lender is also planning to issue between EUR1.5 billion and
EUR2 billion in bonds at some point in January, which it will be
able to do off of the back of the state guarantee on its
financial future, City A.M. states.

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



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


BABSON EURO 2014-1: Fitch Assigns 'B-' Rating to Class F Notes
--------------------------------------------------------------
Fitch Ratings has assigned Babson Euro CLO 2014-1's refinancing
notes final ratings and affirmed the other notes, as:

  Class A-1 due 2027: assigned 'AAAsf'; Outlook Stable
  Class A-2 due 2027: assigned 'AAAsf'; Outlook Stable
  Class B-1 due 2027: assigned 'AAsf'; Outlook Stable
  Class B-2 due 2027: assigned 'AAsf'; Outlook Stable
  Class C: affirmed at 'Asf'; Outlook Stable
  Class D: affirmed at 'BBBsf'; Outlook Stable
  Class E: affirmed at 'BBsf'; Outlook Stable
  Class F: affirmed at 'B-sf'; Outlook Stable

The transaction is a cash flow collateralized loan obligations
securitizing portfolios of mainly European leveraged loans and
bonds.  The portfolio is managed by Barings (U.K.) Limited,
(formerly Babson Capital Management (UK) Limited and Babson
Capital Europe Limited).

                         KEY RATING DRIVERS

Average Portfolio Credit Quality

Fitch assesses the average credit quality of obligors as being in
the 'B'/'B-' category.  Fitch has credit opinions on all obligors
in the underlying portfolio.  The weighted average rating factor
(WARF) of the underlying portfolio is 33.5, below the maximum
WARF of 36.

Average Recoveries
At least 90% of the portfolio comprises senior secured
obligations.  Fitch views the recovery prospects for these assets
as more favorable than for second-lien, unsecured and mezzanine
assets.  Fitch has assigned Recovery Ratings to all assets in the
indicative portfolio apart from two.  The weighted average
recovery rate (WARR) of the indicative portfolio is 64.6%, above
the minimum WARR of 62.8%.

Partial Interest Rate Hedge
Between 10% and 20% of the portfolio may be invested in fixed-
rate assets, while fixed-rate liabilities account for 15% of the
target par amount.  Therefore the transaction is hedged against
rising interest rates.  The fixed-rate collateral obligations as
of the Nov. 30, 2016, were 14.8%, resulting in a rate mismatch
between asset and liabilities of 0.2%.

Limited FX Risk
Any non-euro-denominated assets have to be hedged with perfect
asset swaps as of the settlement date.  The transaction is
allowed to invest up to 20% of the portfolio in non-euro-
denominated assets.  As of Nov. 30, 2016, the underlying
portfolio did not include any non-euro obligations.

                         TRANSACTION SUMMARY

The issuer has issued new notes with the aim of refinancing part
of the original liabilities.  The refinanced notes have been
repaid in full with proceeds from the refinancing notes.

The refinancing notes bear interest at a lower margin over
EURIBOR or lower fixed rate coupon than the notes being
refinanced.  The remaining terms and conditions of the
refinancing notes (including seniority) are the same as the
refinanced notes.  The refinancing notes cannot be refinanced on
a future date.

The final ratings assigned to the refinancing notes reflect
Fitch's view that the credit risk of the refinancing notes is
substantially similar to the notes being refinanced.

                        RATING SENSITIVITIES

As the loss rates for the current portfolios are below those
modeled for the respective stress portfolio, the sensitivities in
the new issue report of the refinanced notes still apply.


BABSON EURO 2014-1: Moody's Reviews B2 Rating on Class F Notes
--------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to four
classes of notes ("Refinancing Notes") issued by Babson Euro CLO
2014-1 B.V. At the same time, Moody's placed on review for
upgrade five classes of notes.

EUR201,250,000 Refinancing Class A-1 Senior Secured Floating Rate
Notes due 2027, Definitive Rating Assigned Aaa (sf)

EUR30,000,000 Refinancing Class A-2 Senior Secured Fixed Rate
Notes due 2027, Definitive Rating Assigned Aaa (sf)

EUR20,500,000 Refinancing Class B-1 Senior Secured Floating Rate
Notes due 2027, Definitive Rating Assigned Aa2 (sf) and Placed
Under Review for Possible Upgrade

EUR30,000,000 Refinancing Class B-2 Senior Secured Fixed Rate
Notes due 2027, Definitive Rating Assigned Aa2 (sf) and Placed
Under Review for Possible Upgrade

EUR22,500,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2027, A2 (sf) Placed Under Review for Possible Upgrade;
previously on Apr 15, 2014 Definitive Rating Assigned A2 (sf)

EUR19,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2027, Baa2 (sf) Placed Under Review for Possible
Upgrade; previously on Apr 15, 2014 Definitive Rating Assigned
Baa2 (sf)

EUR14,500,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2027, B2 (sf) Placed Under Review for Possible Upgrade;
previously on Apr 15, 2014 Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

Moody's definitive rating of the Notes addresses the expected
loss posed to noteholders. The definitive rating reflects the
risks due to defaults on the underlying portfolio of assets, the
transaction's legal structure, and the characteristics of the
underlying assets.

The Issuer has issued the Refinancing Notes in connection with
the refinancing of the following classes of original notes: Class
A-1 Notes, Class A-2 Notes, Class B-1 Notes, and Class B-2 Notes
due 15th April 2027 (the "Original Notes"), previously issued on
April 15, 2014 (the "Original Closing Date"). On the refinancing
date, the Issuer will use the proceeds from the issuance of the
Refinancing Notes to redeem in full its respective Original Notes
that will be refinanced while the class C, D, E and F notes
remains outstanding with unchanged terms and conditions since
closing date.

The reduced weighted average life of the portfolio, the decreased
spreads/coupon levels on Class A-1/A-2 and Class B-1/B-2 are
credit positive for the transaction and have been reflected in
the base case used for assigning ratings to the refinanced notes.
Moody's believes that the positive change can have a further
positive impact on the ratings of Class B-1/B-2, C, D and F notes
and as a result placed their ratings on review for possible
upgrade. During the review period, Moody's will conduct further
analysis with regards to the entire set of Moody's Test matrix
and the related adjustments.

Babson Euro CLO 2014-1 B.V. is a managed cash flow CLO. The
issued notes are collateralized primarily by broadly syndicated
first lien senior secured corporate loans. At least 90% of the
portfolio must consist of senior secured loans and eligible
investments, and up to 10% of the portfolio may consist of second
lien loans and unsecured loans. The underlying portfolio is 100%
ramped as of the second refinancing closing date.

Barings (U.K.) Limited (the "Manager") manages the CLO. It
directs 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
reinvestment period. After the reinvestment period, which ends in
April 2018, the Manager may reinvest unscheduled principal
payments and proceeds from sales of credit risk obligations,
subject to certain restrictions.

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.

Methodology Underlying the Rating Action:

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

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

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

Loss and Cash Flow Analysis:

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3.2.1
of the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in October 2016.

The cash flow model evaluates all default scenarios that are then
weighted considering the probabilities of the binomial
distribution assumed for the portfolio default rate. In each
default scenario, the corresponding loss for each class of notes
is calculated given the incoming cash flows from the assets and
the outgoing payments to third parties and noteholders.
Therefore, the expected loss or EL for each tranche is the sum
product of (i) the probability of occurrence of each default
scenario and (ii) the loss derived from the cash flow model in
each default scenario for each tranche. As such, Moody's
encompasses the assessment of stressed scenarios.

The key model inputs Moody's used 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. For modeling
purposes, Moody's used the following base-case assumptions:

Performing par and principal proceeds balance: EUR400,000,000

Defaulted par: EUR0

Diversity Score: 42

Weighted Average Rating Factor (WARF): 2885

Weighted Average Spread (WAS): 4.00%

Weighted Average Coupon (WAC): 5.50%

Weighted Average Recovery Rate (WARR): 39.75%

Weighted Average Life (WAL): 5.3 years

As part of its analysis, Moody's has addressed the potential
exposure to obligors domiciled in countries with local currency
government bond rating of A1 or below. Following the effective
date, and given the portfolio constraints and the current
sovereign ratings in Europe, such exposure may not exceed 10% of
the total portfolio, where exposures to countries rated below A3
cannot exceed 5% (with none allowed below Baa3). 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 our published methodology. The portfolio
haircuts are a function of the exposure size to peripheral
countries 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 and
0.375% for the Class C notes.

Stress Scenarios:

Together with the set of modeling assumptions above, Moody's
conducted an additional sensitivity analysis, which was a
component in determining the definitive rating assigned to the
rated Notes. This sensitivity analysis includes increased default
probability relative to the base case.

Below is a summary of the impact of an increase in default
probability (expressed in terms of WARF level) on the Notes
(shown in terms of the number of notch difference versus the
current model output, whereby a negative difference corresponds
to higher expected losses), assuming that all other factors are
held equal:

Percentage Change in WARF -- increase of 15% (from 2885 to 3318)

Rating Impact in Rating Notches:

Refinancing Class A-1 Senior Secured Floating Rate Notes: 0

Refinancing Class A-2 Senior Secured Fixed Rate Notes: 0

Refinancing Class B-1 Senior Secured Floating Rate Notes: -1

Refinancing Class B-2 Senior Secured Fixed Rate Notes: -1

Percentage Change in WARF -- increase of 30% (from 2885 to 3751)

Rating Impact in Rating Notches:

Refinancing Class A-1 Senior Secured Floating Rate Notes: 0

Refinancing Class A-2 Senior Secured Fixed Rate Notes: 0

Refinancing Class B-1 Senior Secured Floating Rate Notes: -2

Refinancing Class B-2 Senior Secured Fixed Rate Notes: -2


NXP SEMICONDUCTORS: Egan-Jones Hikes Sr. Unsecured Ratings to BB
----------------------------------------------------------------
Egan-Jones Ratings, on Jan. 13, 2017, raised the senior unsecured
ratings on debt issued by NXP Semiconductors to BB from BB-.

NXP Semiconductors N.V. is a global semiconductor manufacturer
headquartered in Eindhoven, The Netherlands.


===========
N O R W A Y
===========


FARSTAD SHIPPING: Upholds Suspension of Financial Debt Service
--------------------------------------------------------------
Reference is made to the company update of January 5, 2017. As
set out therein, Farstad Shipping ASA (the "Company") and a
majority of its subsidiaries uphold their current suspension of
service of financial debt in order to preserve liquidity.
Accordingly, the loan outstanding under the bond issue with ISIN
NO 001 0635964 will not be repaid at maturity in February 2017.

In support of the continued restructuring efforts of the Company,
the secured lenders of the Company and a majority of its
subsidiaries have agreed to a standstill and deferral agreement
pursuant to which all amortisations and interest payable to the
secured lenders will be deferred until February 28, 2017.
Moreover, Ocean Yield ASA has agreed to a standstill in respect
of bareboat hire payments for AHTS Far Senator and AHTS Far
Statesman for the months of January and February 2017.  Finally,
substantial bondholders in the Company's two bond issues (ISIN NO
001 0679871 and NO 001 0635964) have agreed not to take steps to
accelerate or enforce the loans outstanding under the Bond Issues
during the same period of time. All agreements are subject to
customary terms and conditions.

The Farstad Shipping group will otherwise maintain operations as
a going concern.  All suppliers and trade creditors will be paid
in their ordinary course.

No further comments will be given at this stage.

Farstad Shipping ASA is a Norwegian provider of large, modern
offshore service vessels to the oil and gas industry worldwide.


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


BANCO COMERCIAL: S&P Puts 'B+' Rating on CreditWatch Positive
-------------------------------------------------------------
S&P Global Ratings said it placed on CreditWatch with positive
implications the 'B+' long-term rating on Portugal-based Banco
Comercial Portugues (Millennium bcp).  The 'B' short-term rating
was affirmed.  S&P also placed its senior and subordinated debt
issue ratings on CreditWatch positive, but the 'D' ratings on the
preferred stock issued or guaranteed by the bank were unchanged.

At the same time, S&P revised to stable from positive the outlook
on Portugal-based Haitong Bank S.A. and affirmed its 'BB-/B'
long- and short-term counterparty credit ratings.

S&P placed Millennium bcp on CreditWatch after it announced a
rights offering for EUR1.33 billion.  If this is successful, S&P
considers that it could improve the bank's creditworthiness.
Millennium bcp intends to use the proceeds to pay back the still-
outstanding EUR700 million in contingent convertible instruments
(cocos) subscribed by the Portuguese government back in 2012.  It
will use the remainder to strengthen its solvency, accelerating
its original plans to organically reach a fully loaded Common
Equity Tier 1 (CET1) level above 11% in 2018.

In S&P's opinion, if Millennium bcp successfully completes this
capital initiative, it:

   -- Would suggest equity investors' support of its strategic
      plan;
   -- Would improve its financial flexibility, as the cocos would
      be fully repaid and the bank would be in a position to
      resume coupon payments on preference shares and dividend
      payments on share capital; and
   -- Could help restore creditors' confidence in its ability to
      deliver on its strategic goals and financial targets,
      especially on its ability to turn around profitability and
      clean up its problematic exposures (even if the actual
      stock of problematic assets declines only gradually).

Chinese investor Fosun Industrial Holdings Ltd. could increase
its stake in Millennium bcp to 30% through this capital-raising
exercise; S&P considers that this is likely to be neutral from a
ratings perspective.  Although a 30% interest could make Fosun a
relevant shareholder with influence over Millennium bcp's
strategy--it would have up to three members on the board of
directors--Fosun would not have direct operational control.
Furthermore, in S&P's view, it is unlikely that its ratings on
Millennium bcp would benefit from ratings uplift reflective of
group support from Fosun.  Fosun is transitioning to an
investment holding company from an industrial financial
conglomerate, it had a limited presence in banking before its
investment in Millennium bcp, it has high debt leverage, and this
investment represents only a small proportion of its total
portfolio.

The revision of S&P's outlook on Haitong Bank to stable from
positive reflects S&P's view of the difficulties ahead for the
Portuguese banking industry.  Specifically, S&P considers that
Haitong Bank's progress in reshaping its business model and
returning to profitability may take longer to materialize than
previously expected.

Haitong Bank's lack of scale in the competitive investment
banking market, the difficulty it faces in turning around the
business model, and weak asset quality in its credit portfolio,
weigh on the bank's stand-alone creditworthiness.  That said,
S&P's ratings on Haitong Bank benefit materially from its view
that it is a strategically important subsidiary of Haitong
Securities Co. Ltd. (BBB/Negative/A-2) and therefore that it
could benefit from extraordinary financial assistance, if needed.

                         SYSTEMWIDE ISSUES

S&P now considers the trend in Portugal's industry risk to be
stable, rather than positive.  In S&P's view, the Portuguese
banking system will struggle to improve its profitability and
efficiency.  Additionally, all major banks--except for Banco
Santander Totta S.A.--are undergoing significant restructuring,
or management and ownership changes.

In contrast with S&P's previous expectation, it now anticipates
that the Portuguese banking system will report losses in 2016,
making it six years of losses in a row.  Most likely, losses will
also continue in 2017.  Portuguese banks' earnings generation
capacity remains under significant pressure given the ultra-low
interest rates, muted volume growth, and large stock of
problematic assets.  Not only do problematic assets fail to
generate revenues, they also keep provisioning costs high.  In
addition, Portuguese banks have yet to tackle the downsizing of
their large operating infrastructures.

Management issues and disagreements among major shareholders have
also become evident at a number of Portuguese financial
institutions recently.  In S&P's view, these ultimately diminish
management focus and steering capacity.  Major banks still have
significant pending issues to be solved or are undergoing
important changes.  For example:

   -- Caixa Geral de Depositos announced a significant
      recapitalization plan in mid-2016, but a new board of
      directors and a management team to lead the process has yet
      to be announced;

   -- Millennium bcp recently announced the entrance of a new
      shareholder, Fosun, and only a few days ago, the launching
      of a large capital increase;

   -- Banco BPI is immersed in the tender offer launched by
      Caixabank S.A., which could achieve full control from its
      current 45% stake; and

   -- Lastly, the sale of Novo Banco (not rated) has already been
      pending for more than two years and it is likely that its
      franchise value has weakened.

S&P considers that all these difficulties weigh on investors'
perception of Portuguese banks' risks and constrain the banks'
ability to tap the external markets for funding.

Following a period in which Portugal's creditworthiness has
stabilized, S&P no longer considers that the sovereign represents
an additional source of credit risk for banks.  Nevertheless, the
private sector still holds a high level of debt despite recent
improvements, and this weighs on banks' asset quality.  S&P
expects nonperforming assets (NPAs) to decline only gradually in
2017 and 2018 as the economy grows (even if moderately) and new
problematic loan formation gradually slows down.  Any significant
reduction of the system's NPAs is likely to take several years to
materialize.  S&P therefore forecasts that NPAs will represent
close to 16% of gross loans and foreclosed real estate assets at
the end of 2017 and 2018--largely in line with the level that S&P
estimates for end-2016.

The factors driving S&P's ratings on Caixa Geral de Depositos
S.A. (BB-/Watch Pos/B), Banco Santander Totta S.A. (BB+/Stable/B)
and Banco BPI S.A. (BB-/Watch Dev/B) are not directly influenced
by our revision of Portugal's industry risk trend to stable from
positive.  S&P has therefore not included them in this review.

                             OUTLOOK

Banco Comercial Portugues S.A.

The CreditWatch placement reflects the possibility that S&P could
raise its long-term rating on Millennium bcp if it successfully
completes the EUR1.33 billion capital increase it has just
launched.  The transaction is expected to close in mid-February.

If Millennium bcp fails to complete the capital increase the
ratings would probably be affirmed at the current level, but S&P
may also take a more negative view than S&P currently do on
Millennium bcp's ability to improve investors' and creditors'
confidence in the bank.

The two credit factors that could cause S&P to raise its issue
ratings on Millennium bcp's nondeferrable subordinated debt by up
to two notches are:

   -- A potential improvement in the bank's stand-alone
      creditworthiness, and
   -- The repayment of the cocos held by the state, which would
      mark the completion of the restructuring plan imposed on
      Millennium bcp by European authorities when it received
      state aid.

Haitong Bank S.A.

The stable outlook on Haitong Bank reflects S&P's view that its
stand-alone creditworthiness is unlikely to change in the next 12
months, during which S&P expects it to remain focused on
implementing its difficult business model turnaround.  S&P
anticipates that the bank will be able to absorb 2016 losses
while maintaining a risk-adjusted capital (RAC) ratio sustainably
above 5% and that it will reduce its stock of impaired assets
only gradually from the current high level (NPA ratio of 41% on
June 30, 2016).  Moreover, S&P's outlook reflects its expectation
that the parent's capacity and willingness to provide further
financial support to Haitong Bank will not change.

S&P could raise the long-term rating on Haitong Bank if S&P saw a
combined improvement in asset quality and internal capital
generation, while the bank successfully delivers on its business
plan.

S&P could lower the long-term rating on Haitong Bank if the bank
made losses for longer than expected, S&P's RAC ratio fell below
5%, and asset quality remained a weakness.  S&P could also lower
its ratings on Haitong Bank if S&P considered that its parent was
displaying a diminished commitment to it.

BICRA SCORE SNAPSHOT*

Portugal                  To                 From

BICRA Group               7                  7

Economic risk            6                  6
Economic resilience      Intermediate risk  Intermediate risk
Economic imbalances      High risk          High risk
Credit risk in the
   economy                High risk          High risk

Industry risk            7                  7
Institutional framework  Intermediate risk  Intermediate risk
Competitive dynamics     Very high risk     High risk
Systemwide funding       High risk          Very high risk

Trends
Economic risk trend      Stable             Stable
Industry risk trend      Stable             Positive

*Banking Industry Country Risk Assessment (BICRA) economic risk
and industry risk scores are on a scale from 1 (lowest risk) to
10 (highest risk).

Ratings List

                      Banco Comercial Portugues S.A.

Ratings Affirmed; CreditWatch/Outlook Action
                                  To                 From
Banco Comercial Portugues S.A.
Counterparty Credit Rating       B+/Watch Pos/B
B+/Positive/B
Senior Unsecured                 B+/Watch Pos       B+

BCP Finance Bank Ltd.
Senior Unsecured*                B+/Watch Pos       B+

BCP Finance Co.
Preference Stock*                D                  D

*Guaranteed by Banco Comercial Portugues S.A.

                       Haitong Bank S.A.

Ratings Affirmed; CreditWatch/Outlook Action

                                   To                 From
Haitong Bank S.A.
Counterparty Credit Rating        BB-/Stable/B       BB-/Pos./B
Junior Subordinated               CCC                CCC

Haitong Investment Ireland PLC
Senior Unsecured                  BB-                BB-


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


O'KEY GROUP: Fitch Affirms 'B+' Long-Term IDR, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed O'Key Group S.A.'s Long-Term Foreign
and Local Currency Issuer Default Ratings at 'B+'.  Fitch has
also affirmed LLC O'Key's senior unsecured debt at 'B+'/'A(rus)'
with a Recovery Rating of 'RR4'.  The National Long-Term Rating
has been affirmed at 'A(rus)'.  The Outlook is Stable for both
IDRs and National Long-Term Rating.

The ratings reflect the small scale of O'Key as the seventh-
largest food retailer in Russia.  Nevertheless it retains a
healthy position in the Russian hypermarket segment and a strong
brand, especially in its home St. Petersburg region, one of the
largest retail markets in Russia with strong consumer purchasing
power.

The ratings also reflect temporarily weaker credit metrics
projected for 2016-2017, albeit still in line with its ratings,
as a result of heightened competition in the market and start up-
losses at its new hard discounter format.  The Stable Outlook is
predicated on the group's financial headroom increasing from 2018
as the EBITDA margin improves.

                         KEY RATING DRIVERS

Challenging Trading Environment
Competition is intensifying in the Russian food retail market as
consumer spending remains weak, while large players continue
consolidating the market with rapid store roll-outs.

As O'Key is only the seventh-largest food retailer in Russia and
has modest expansion plans for its core hypermarket format, we
expect it to continue to sacrifice some gross margin to withstand
competition.  Fitch projects a reduction in gross margin to below
23% over 2016-2019 (2015: 23.6%).  This is despite some support
from improved purchasing terms due to a strengthened commercial
team and increased procurement from regional suppliers, as well
as a decrease in supply chain costs following the construction of
a new warehouse in 2016.

Scaling Back Discounter Roll-Outs
O'Key has scaled back plans for its new hard discounter (Da!)
openings over 2017-2019.  Slower growth of the store base will
postpone the format achieving breakeven to 2018 from the
previously expected 2017.  Therefore the group's EBITDA margin
should remain under pressure in 2016-2017 before recovering in
2018 when the new format should gain critical mass.

Our projections also assume that sales density at hard
discounters should catch up with industry averages.
Nevertheless, the ratings continue to incorporate execution risks
around the expansion of the group's new format, as O'Key balances
the need to expand the format to gain critical mass with meeting
profitability targets.

EBITDA Margin under Pressure
Fitch expects O'Key's EBITDA margin to decline to 5.7% in 2016
and remain around this level in 2017 (2015: 6.1%) due to a mild
decline in gross margin and losses in growing discounter
operations.  Fitch's expectation of recovery of the EBITDA margin
to 6.2% in 2018-2019 is based on the discount stores breaking
even and lower staff costs partly offsetting the gross margin
decrease.

Slow Revenue Growth

Fitch expects O'Key's revenue to grow 7% per annum over the
medium term (2015: 7%), which is the lowest among public Russian
food retailers, but high by European standards.  This is based on
5% annual sales growth in O'Key's core hypermarket and
supermarket formats, which in turn is driven by new store
openings.  Fitch however conservatively assumes close-to-zero
like-for-like (LfL) sales growth over the medium term due to the
competitive market environment.

Positively LfL sales growth should be supported by O'Key's strong
brand, continued assortment adjustments towards cheaper goods and
private label, and by a gradual recovery in non-food sales.

Credit Metrics Consistent with Ratings

Fitch expects O'Key's funds from operations (FFO)-adjusted gross
leverage and FFO fixed charge coverage to weaken in 2016-2017
before recovering in 2018 as EBITDA margin improves, while capex
remains moderate at 3%-4% of sales.  Fitch expects FFO adjusted
gross leverage to fall to 3.7x by 2019 (2015: 4.1x), which is
conservative for the industry but consistent with the rating
given O'Key's weaker-than-peers business profile.

However, weak financial performance for example due to delays in
achieving profitability for its discounter format or greater-
than-expected margin attrition not offset by other cash
preservation measures, resulting in permanently impaired credit
metrics could put negative pressure on the rating or outlook.

                        DERIVATION SUMMARY

The rating differential between O'Key (B+/Stable) and its Russian
peers X5 (BB/Stable) and Lenta (BB/Stable) stems from the
company's weaker business profile due to its smaller scale and
market position, more limited growth prospects as well as more
volatile margins and LfL sales performance.  Leverage is slightly
higher than its peers, although Fitch expects some deleveraging
in the next three as the expanding discount format begins to
generate operating profits.

                        KEY ASSUMPTIONS

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

   -- Revenue growth of, 7% per year supported by 5% revenue
      growth in hypermarket and supermarket formats and
      discounter format openings.
   -- EBITDA margin decreasing to 5.7% in 2016-2017, before
      recovering to above 6% in 2018 as discounter format breaks
      even in 2018
   -- Capex at 3%-4% of revenue over 2016-2019, reflecting fewer
      store openings.
   -- Dividends of around RUB1.3bn per year.

                       RATING SENSITIVITIES

Future developments that may, individually or collectively, lead
to a negative rating action include:

   -- Continued contraction in LfL sales growth relative to peers
      and failure in executing its expansion plan;
   -- EBITDA margin erosion to below 5.5% on a sustained basis
      (2015: 6.1%);
   -- FFO-adjusted gross leverage above 4.5x on a sustained basis
      (2015: 4.1x);
   -- FFO fixed charge coverage below 1.7x on a sustained basis
      (2015: 1.7x);
   -- Deterioration of liquidity as a result of weaker internal
      cash flow generation or worsened access to external
      funding.

Future developments that may, individually or collectively, lead
to a positive rating action include:

   -- Solid execution of its expansion plan with faster revenue
      growth from improved LfL sales and accelerated store
      expansion, while preserving its market position and
      financial discipline;
   -- Maintaining EBITDA margin above 6.5%;
   -- FFO-adjusted gross leverage below 3.5x on a sustained
      basis;
   -- FFO fixed charge coverage around 2.0x on a sustained basis.

                             LIQUIDITY

Adequate Liquidity
At end-October 2016 O'Key's liquidity was adequate as cash
balances of RUB2.6 bil. and undrawn committed credit facilities
of RUB5.9 bil. were sufficient to cover short-term debt of RUB5.4
bil. and expected negative free cash flow for 2017.


YUKOS: Moscow's Lawyers Seek Quick Resolution of Appeals Case
-------------------------------------------------------------
AFP reports that former shareholders of defunct Russian oil giant
Yukos were back in a Dutch court on Jan. 16 as Moscow's lawyers
pressed judges for a quick resolution of a complex appeals case.

The claimants, led by the former main shareholder GML, in July
last year appealed a Dutch court's decision to overturn a ruling
ordering Moscow to pay them a record US$50 billion in damages,
AFP recounts.

According to AFP, Russian Federation representative Albert Jan
van den Berg told judges at The Hague's Appeals Court "The
Russian Federation has a significant interest in an expedient and
concentrated conduct of this appeal."

The US$50 billion in damages "is a massive amount, also for the
Russian Federation," Mr. Van den Berg, as cited by AFP, said,
adding Russia "is entitled to obtain a final decision upholding
the judgment of the District Court as quickly as possible."

Yukos was once Russia's biggest post-Soviet oil company but was
broken up after its former owner, Kremlin critic and ex-tycoon
Mikhail Khodorkovsky was arrested in 2003, AFP recounts.

His arrest came shortly after Russian President Vladimir Putin,
then prime minister, warned the nation's growing class of
oligarchs against meddling in politics, AFP notes.

Yukos was sold off in opaque auctions to state companies led by
Rosneft between 2004 and 2006, AFP discloses.

The claimants have sought since 2005 to win compensation for what
they say are their losses caused by the break-up of Yukos, AFP
relays.

The international Permanent Court of Arbitration, based in The
Hague, ruled in 2014 that Russia had forced Yukos into bankruptcy
with excessive tax claims and sold off its assets to state-owned
companies, AFP recounts.

It ordered Moscow to pay "in excess of US$50 billion" to the
former shareholders -- a record award for the arbitration
tribunal, AFP relates.

According to AFP, in a legal game of cat-and-mouse, the claimants
led by GML, have lodged cases in various European courts seeking
the seizure of Russian assets abroad after Moscow refused to pay
out.


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


CATALONIA: Fitch Affirms 'BB' Long-Term IDR, Outlook Negative
-------------------------------------------------------------
Fitch Ratings has affirmed the Autonomous Community of
Catalonia's Long-Term Foreign and Local Currency Issuer Default
Ratings at 'BB' with Negative Outlooks.  Fitch has also affirmed
the Short-Term Foreign Currency IDR at 'B'.  The ratings on the
senior unsecured outstanding bonds have been affirmed at 'BB'.

The affirmation reflects the ongoing liquidity support that Fitch
assumes will be provided through the Regional Liquidity Fund
(FLA) to support Catalonia's debt obligations in 2017.  The
ratings also reflect protracted political uncertainty stemming
from the evolving relationship between the executives of Spain
and Catalonia.

The Negative Outlook reflects the political risks the region
faces over the next couple of years.  Potential outcomes of
ongoing political tensions could be an abrupt separation from
Spain or the withdrawal of state support over the medium term,
specifically in light on the potential vote on Catalonia's
independence scheduled in September 2017 according to the
regional government's agenda.

                        KEY RATING DRIVERS

Political Tension Continues
Political uncertainty continues to prevail over the region and
the ruling party Junts Pel Si (JxS, centre-right wing), with
support of CUP, a far left wing party, is pushing to hold a vote
on Catalonia's independence in September 2017.

In addition, as the 2017 budget has yet to be approved by the
regional parliament and after a failure to enforce the 2016
budget, the region may again roll over 2015's budget.  JxSi has
stated that if no parliamentary approval is given to the 2017
budget, new elections might be called during 2017.

At the national level, the newly elected executive in October
2016 is, in Fitch's view, keen to make progress on its discussion
with the Catalonian regional government over the latter's funding
and public investment policies without compromising Spain's
constitutional integrity.

Uncertainty over Catalonia since the regional government pushed
for independence has weakened the institutional relationship with
the central government, and Fitch as a result suspended its 'BBB-
' Support Rating Floor for Catalonia in November 2015.  In
Fitch's view, The September 2017 vote, if it takes place, and its
outcome will define the framework for Catalonia's relationship
with the central government over the medium term.

Debt Redemption Supported
Fitch is monitoring the assistance the central government is
providing Catalonia through the FLA in the region's redemption of
EUR5,466m long-term debt in 2017.  The servicing of debt on a
timely basis by the FLA is key to Catalonia's 'BB' Long-Term IDR.
An additional EUR4,429m in short-term debt will fall due in 2017,
which will be rolled over by Catalonia under the oversight of the
Ministry of Finance and Civil Service (MinHap).  Fitch believes
MinHap's monitoring and the coverage of these maturities by FLA
as a last resort mitigate the liquidity risk.

Catalonia is a major recipient of state liquidity support, and
received EUR10bn from the FLA in 2016 so that borrowing from the
central government amounted to EUR51 bil., or 75% of Catalonia's
estimated total debt on the same date.  Fitch estimates Catalonia
will borrow at least EUR7.5 bil. from the FLA in 2017.

Weak Performance, Expected Improvement
Catalonia's budgetary performance has been weak, with negative
current balances since 2009.  The region's 2015 results showed a
negative current margin of 21.6%, which was below Fitch's
expectations.  However, we expect an improvement of the region's
budgetary performance in 2016, due to an additional EUR2bn inflow
stemming from higher financial system allocations and a positive
settlement from 2014, and a lower debt burden.  Higher self-
collected taxes, fostered by the economic recovery, are also
expected to have contributed to the improvement.  Fitch base case
scenario forecasts Catalonia will post a negative current margin
below 10% in 2016.

Overall, Fitch base case scenario estimates a fiscal deficit
close to 1% in 2016, a significant improvement from 2015's 2.7%
deficit, but still in breach of the 0.7% deficit goal.  Fitch
expects Catalonia to continue improving its budgetary performance
in 2017, driven by enhanced operating revenues, but volatile
performance is possible given the region's recent budgetary track
record.

We expect debt growth to slow slightly on the back of higher
revenues, with debt representing around 300% of current revenue
at end-2016, down from 310% in 2015.

Regional Economy Growing
Catalonia has an above-average economic profile and sees faster
growth than the national economy.  Nominal GDP grew 3.9% against
3.8% nationally in 2015, and the unemployment rate was 14.6% in
3Q16, versus 18.9% in Spain.  Moreover, the number of registered
workers in Catalonia increased 4% yoy as of end-November 2016,
versus 3% nationwide.  Although the economic recovery has not
been affected by the current political uncertainty, unilateral
independence of Catalonia is likely to result in economic shock.

                       RATING SENSITIVITIES

Fitch will continue to monitor developments in Catalonia, in
particular a potential referendum on independence, and will take
negative rating action if state liquidity support weakens as a
result.  If the political relationship with the central
government returns to normal, Fitch will reinstate the Support
Rating Floor of 'BBB-' for Catalonia.

                          KEY ASSUMPTIONS

Fitch assumes that the region will continue to have access to
state support for debt servicing over the medium term.


FTPYME BANCAJA 6: Fitch Withdraws 'Dsf' Rating on Class D Notes
---------------------------------------------------------------
Fitch Ratings has downgraded and withdrawn FTPYME Bancaja 6 and
PYME Valencia 1's ratings, as:

FTPYME Bancaja 6:

  Class D (ISIN ES0339735054): downgraded to 'Dsf' from 'Csf' and
   withdrawn

PYME Valencia 1

  Class E (ISIN ES0372241051): downgraded to 'Dsf' from 'Csf' and
   withdrawn

FTPYME Bancaja 6 was a cash flow securitisation of loans to
small- and medium-sized Spanish enterprises (SMEs) granted by
former Caja de Ahorros de Valencia, Castellon y Alicante, now
Bankia S.A
(BBB-/Stable/F3).

PYME Valencia 1, F.T.A. was a cash-flow securitisation of loans
granted to Spanish SMEs by Banco de Valencia, which merged with
Caixabank (BBB/Positive/F2) in 2013.

                        KEY RATING DRIVERS

FTPYME Bancaja 6 and PYME Valencia 1's portfolios were liquidated
on Dec. 23 and 27, respectively.  FTPYME Bancaja 6's class B and
C notes and PYME Valencia's class B, C and D notes were paid in
full.

FTPYME Bancaja 6 and PYME Valencia 1 were unable to fully pay
down the most junior class (D and E, respectively), leaving
EUR7.1 mil. (26% of the initial balance) and EUR14.5 mil. (95% of
the initial balance) unpaid.  Fitch has therefore downgraded the
outstanding notes to 'Dsf' and withdrawn the ratings.

In PYME Valencia 1, the class E noteholder also received 84 real
estate assets with a total net book value of EUR9.5 mil., which
is considered as a distressed exchange of the obligation on
diminished economic terms.

The defaulted classes of both deals were not collateralised by
loans at transaction closing since proceeds obtained from their
sale were used to fund the cash reserve.  Both were originally
rated 'CCsf' and were downgraded to 'Csf' in November 2009.


ZED+: Dutch Corporate Lawyer Arrested in Insolvency Probe
---------------------------------------------------------
Angus Berwick and Toby Sterling at Reuters, citing a judicial
source, report that Spanish police arrested prominent Dutch
corporate lawyer Peter Wakkie at Madrid airport on Jan. 16 in an
investigation into the insolvency of Russian-Spanish telecom firm
ZED+.

According to Reuters, the source from the Spanish investigation
said Spain's anti-corruption prosecutor's office was seeking to
charge Mr. Wakkie with belonging to a criminal organization and
making false claims of insolvency.

Mr. Wakkie was named interim top manager of ZED+ by the Amsterdam
Commercial Court in November 2014 pending an inquiry into the
company's previous management, whose infighting had brought it
close to bankruptcy, Reuters relays, citing Dutch court
documents.

The court documents show that in February 2016, the court
suspended ZED+ Co-President and Chief Executive Javier Perez
Dolset from its board of managers after the London Court of
International Arbitration found in 2015 that he had forged
documents, Reuters discloses.

Mr. Dolset and an associate named in the UK hearing denied any
wrongdoing or fraud, Reuters notes.


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


PLATINUM BANK: MP Sees Collapse as Political Bankruptcy of Pres.
----------------------------------------------------------------
Interfax-Ukraine reports that MP Serhiy Taruta has said that the
decision of the board of the National Bank of Ukraine (NBU) to
put Platinum Bank on the list of insolvent banks could be
considered as political bankruptcy of Ukrainian President
Petro Poroshenko.

"The president could not have been unaware that Gontareva [NBU
Governor Valeriya Gontareva] is withdrawing the money via
Platinum Bank. Not only me, but all serious economists of the
country, Verkhovna Rada deputies and former employees of the NBU
dismissed by Gontareva informed about it each day,"
Interfax-Ukraine quotes Mr. Taruta as saying on Jan. 11.

He said that declaring Platinum Bank insolvent is the ground for
a trial against NBU top managers and resignation of the head of
state, Interfax-Ukraine relates.

"I repeated many times -- Gontareva and Rozhkova [Deputy NBU
Governor Kateryna Rozhkova] must be brought to court.  After
bankruptcy of Platinum [Bank] I say -- Gontareva and Rozhkova
must be brought to court and the president must resign,"
Mr. Taruta, as cited by Interfax-Ukraine, said.

NBU on Jan. 10 issued decision placing the Platinum Bank (Kyiv)
on the list of insolvent banks, Interfax-Ukraine recounts.  As of
Jan. 1, the bank did not reach the positive value of capital,
Interfax-Ukraine notes.

Kyiv-based Platinum Bank was established in 2005.  According to
the NBU, as of October 1, 2016, the bank ranked 22nd in terms of
its assets (UAH7.277 billion) among 100 operating banks.


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


AI MISTRAL: S&P Assigns Preliminary 'B' CCR, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings said it has assigned its preliminary 'B'
long-term corporate credit rating to U.K.-based AI Mistral Holdco
Ltd. and AI Mistral (Luxembourg) Subco S.a r.l.  The outlook on
both of these entities is stable.

At the same time, S&P assigned its preliminary 'B' issue-level
rating and '3' recovery rating to AI Mistral (Luxembourg)'s
proposed secured first-lien bank term loans and S&P's preliminary
'CCC+' issue-level rating and '6' recovery rating to its proposed
secured second-lien term loan.  The '3' recovery rating reflects
S&P's expectation of meaningful recovery prospects in the event
of a payment default, in the lower half of the 50%-70% range,
while the '6' recovery rating indicates S&P's expectation of
negligible recovery (0%-10%) in the event of a payment default.

The final ratings will depend on S&P's receipt and satisfactory
review of all final transaction documentation.  Accordingly, the
preliminary ratings should not be construed as evidence of final
ratings.  If S&P Global Ratings does not receive final
documentation within a reasonable time frame, or if final
documentation departs from materials reviewed, S&P reserves the
right to withdraw or revise its ratings.  Potential changes
include, but are not limited to, use of loan proceeds, maturity,
size and conditions of the loans, financial and other covenants,
security, and ranking.

AI Mistral is the acquisition entity for V.Group, which has
received an offer to be acquired by a private equity firm Advent
International.  To finance the acquisition, it plans to issue
US$775 million of senior secured credit facilities via its
finance subsidiary AI Mistral (Luxembourg) Subco S.a r.l.  The
company will draw down a US$495 million senior secured first-lien
term loan and US$192.5 million secured second-lien term loan to
fund the acquisition, with a US$57.5 million revolving credit
facility (RCF) and US$30 million acquisition facility available
when the acquisition closes.

V.Group holds leading market positions in the niche sector of
integrated marine services, has a large diversified portfolio of
vessels under fixed-price service contracts, and generates what
S&P sees as fairly resilient profitability.  Furthermore, S&P
considers that V.Group's historically generally high customer
retention rate, strong strategic relationships with recruitment
sources, broad service range, and sustained reliable execution
will continue to largely shield it against the cyclicality of the
shipping industry.  That said, the annual revolving nature of a
significant portion of V.Group's contracts exposes the company to
contract renewal and volume risk, in S&P's view.

S&P anticipates that V.Group will be able to protect and
gradually expand its market share in the next two years, thanks
to increasing outsourcing of marine services and a gradually
expanding global vessel fleet.  Furthermore, low capital
intensity and the fairly good earnings predictability of the
underlying business model underpin the company's good free
operating cash flow (FOCF) generation.

The company's narrow business scope and scale--it focuses solely
on the cyclical shipping industry--constrain its business
profile. By comparison, large global players have broader
activities in the business services industry (such as general
facility management or staffing services).

S&P views AI Mistral's financial risk profile as highly
leveraged, reflecting its aggressive financial policy, weak
credit protection measures, and high debt burden of about 7.0x
debt-to-EBITDA and FFO cash interest coverage of 2.0x-2.5x at
transaction close.  The company's ownership by a private equity
firm causes S&P to assess its financial policy as FS-6 and to
expect its leverage to remain elevated.  S&P's base-case scenario
does not anticipate any significant deleveraging.

S&P forecasts steady earnings growth over the next 12-24 months
and expect leverage ratios to improve, but remain in the highly
leveraged range (debt to EBITDA above 5.0x).  S&P also expects
the company's EBITDA growth will lead to FFO cash interest
coverage increasing to about 2.5x in 2018.  S&P anticipates that
the company will continue to generate predictable free cash flow
and maintain adequate liquidity while balancing its growth
objectives.

S&P's base-case scenario includes:

   -- Global economic expansion to remain muted, with GDP growth
      of 3.5% in 2016 and 3.7% in 2017, after 3.4% last year.
      This average GDP growth rate hides wide regional
      variations.  China, a key engine of shipping growth, and
      many European economies, including the eurozone economy,
      are slowing down; Brazil and Russia are emerging from
      recession and S&P expects a return to positive real GDP
      growth in 2017-2019.  Meanwhile, economic growth in the
      U.S. should rebound in 2017 after a slowdown last year.
      S&P considers general economic growth to be a high-priority
      driver for the shipping industry.

   -- Growth in the company's fleet under management of 18%-20%
      in 2016 (of which about 15% will come through acquisitions)
      and a similar revenue growth.  S&P sees the total number of
      vessels under management as one of the key factors
      affecting S&P's forecast.  Around 70% of vessels under
      management are on full technical management contacts and
      the remaining 30% are under crew management contracts.
      Both types of contracts are signed per vessel and are
      subject to annual renewal.

   -- Global fleet growth of 2%-4% in 2017 and 2018.  S&P bases
      its assumption on Clarkson's Research forecast that
      V.Group's tanker fleet (which accounts for about 55% of
      V.Group's contract base) will increase by about 3%-4% over
      the period, and the dry-bulk and container fleets -- both
      of which account for the remainder of V.Group's contract
      base -- will expand by about 1% and about 3%, respectively.

   -- Average annual organic revenue growth for the company of
      about 5% from 2017 onward, underpinned by increases in the
      fleet under service and in annual fees.

   -- Reported EBITDA margins gradually improving to about 17% by
      2018 (from 13%-14% in 2015) reflecting various efficiency
      measures, cost synergies, and productivity improvements.

   -- Capital expenditure (capex) of about $10 million in 2016,
      followed by annual average capex of about US$7 million-US$8
      million in 2017-2018.

   -- Loan amortization of US$5 million per year.

   -- No forecast acquisitions or shareholder distributions.

The stable outlook reflects S&P's view that the company will
experience fairly predictable business conditions and achieve
EBITDA growth from expanding fleet under management, productivity
gains, and cost synergies, which should support rating-
commensurate interest coverage metrics, such as FFO cash interest
coverage of above 2.0x.

S&P might lower the rating if it saw signs of a weaker business
risk profile or if FFO cash interest coverage were to fall to
less than 2.0x, which S&P considers could occur if the EBITDA
margin comes under pressure and unexpectedly drops below 13%.
S&P anticipates that such a scenario could result from
significantly lower-than-expected contract renewals, loss of key
clients, or reputation-damaging incidents, leading to lower and
more volatile profitability than S&P currently anticipates.

S&P could also consider lowering the rating if it expected that
the company's liquidity might decline unexpectedly, such that the
ratio of liquidity sources to uses drops to below 1x.  If
pressure on liquidity were to arise from other sources currently
not included in S&P's base case -- such as large cash outflows
for acquisitions or shareholder returns -- S&P might also
consider lowering the rating.

In S&P's opinion, the possibility of an upgrade is limited in the
near term, given AI Mistral's high adjusted debt, constrained
capacity to significantly deleverage, and S&P's assessment of the
company's aggressive financial policy stemming from its private-
equity ownership.  However, S&P could consider an upgrade if the
company improves its credit measures, including sustaining
adjusted debt-to-EBITDA below 5.0x, supported by the private
equity owners committing to a financial policy commensurate with
these metrics.


GAT FTGENCAT 2006: Fitch Withdraws 'D' Cl. E Notes Rating
---------------------------------------------------------
Fitch Ratings has downgraded GAT FTGENCAT 2006, FTA's class E
notes to 'Dsf' and withdrawn the rating, as:

  Class E (ISIN ES0341097055): downgraded to 'Dsf' from 'Csf' and
   withdrawn

GAT FTGENCAT 2006, FTA was a cash flow securitisation of an
initial static pool of EUR440m of 6,922 loans to Spanish small
and medium enterprises originated and serviced by Catalunya Banc,
S.A.

                         KEY RATING DRIVERS

The transaction portfolio was liquidated prior to the
extraordinary payment date of Nov. 18, 2016, when the class C and
D notes were paid in full.  The available funds after the
portfolio liquidation for the portfolio were EUR33.6 mil.  This
was sufficient to pay senior fees and interest, deferred interest
on the class D and E notes (EUR4.6 mil.) and the full redemption
of the outstanding class C and D principal of EUR9.4 mil. and
EUR13.2 mil., respectively.

Class E outstanding principal was EUR9.5 mil. but only EUR6.1
mil. was released to the class E noteholders (ie 64% of the
nominal value of the notes).  The class E noteholders explicitly
accepted the obtained amounts and the notes were subsequently
cancelled. Fitch considers the missed full repayment of the
principal as a default on the notes.  Fitch has therefore
downgraded the outstanding notes to 'Dsf' and withdrawn the
ratings.

The class E notes were not originally collateralised by loans at
transaction closing since proceeds obtained from their sale were
used to fund the cash reserve.  The notes were originally rated
'CCCsf' but were subsequently downgraded to 'CCsf' and then to
'Csf' in January 2010.


NEMEAN BIDCO: S&P Assigns 'B+' Counterparty Credit Rating
---------------------------------------------------------
S&P Global Ratings said it has assigned its 'B+' long-term
counterparty credit rating to Jersey-based Nemean BidCo Ltd., the
parent of U.K.-based credit card provider NewDay Group Holdings
S.a.r.l.  The outlook on Nemean BidCo is stable.

S&P also assigned its 'B' issue rating to the proposed
GBP425 million senior secured notes to be issued by Nemean BondCo
PLC.  The rating on the proposed notes is subject to S&P's review
of the notes' final documentation.

S&P's 'B+' long-term counterparty credit rating reflects the
group's narrow focus on specific segments of the U.K. credit card
market and weak capitalization at the point of transaction
closing.  This is partially offset by the group's good internal
capital generation, consistent strategy, and sound pricing
capabilities.

On Oct. 11, 2016, private equity firms Cinven and CVC announced
their agreement to acquire U.K.-based NewDay Group Holdings from
its present owners, Varde Partners.  The activities of the
Group -- which captures NewDay Group Holdings and its operating
subsidiaries, and special-purpose entity Nemean BondCo -- will be
consolidated under the newly-formed intermediate non-operating
holding company, Nemean BidCo.  The rating on Nemean BidCo
reflects S&P's view of the consolidated group upon completion of
the acquisition.  S&P do not perceive any material barriers to
cash flows within the group or any significant issues regarding
fungibility of capital between the parent company, the debt-
issuing holding companies, or the key subsidiaries under the new
structure.

"We derive our starting point for the group by using the typical
preliminary anchor for finance companies operating in the U.K.
This reflects the group's 100% credit card receivables exposure
in the U.K., the Financial Conduct Authority's oversight of
NewDay, and our view that the group's greatest risks relate to
asset quality and the sufficiency of internal capital generation
to absorb unexpected losses.  Our 'bb+' starting point for a
finance company operating predominantly in the U.K. is three
notches below the typical 'bbb+' U.K. bank anchor.  This
differential reflects Nemean BidCo's lack of prudential
regulatory oversight, lack of access to insured deposits and
central bank funding for liquidity, and its exposure to the
U.K.'s competitive credit card market," S&P said.

"We recognize that through NewDay, the group has been
successfully operating in the U.K. credit card market since 2002.
However, the strength of the group's business operations is
constrained by its narrow focus on specific segments of the U.K.
credit card market. NewDay focuses on two sectors, which are its
"own-brand" products, targeted at near-prime customers, and its
"co-brand" products in partnership with several U.K. retailers,
and recent partnerships with Amazon and TUI, targeted at prime
customers.  Although there are nuances between the two, the
underlying characteristics that drive the segments are broadly
the same.  In our view, this concentrated focus can lead to less
stable or predictable revenues as the industry may face
challenging operating conditions. Therefore, in line with our
analysis of rated peers, we consider this concentration as a
ratings weakness, contributing to the overall moderate business
position assessment," S&P noted.

At the same time, the group's business operations are supported
by evidence of stability in the near-prime segment relative to
the industry as a whole, including more creditworthy segments of
the credit card market.  In part, this reflects the lower credit
limits available to the near-prime segment.  It also reflects
evidence of greater cyclicality in performance of prime
receivables than near-prime; rising unemployment and declines in
asset prices tend not to affect the near-prime segment so much as
it operates with consistently higher levels of unemployment,
lower average incomes, and lower wealth.  In S&P's view, this
feature gives near-prime providers the opportunity of greater
visibility of business volumes and charge-offs through the cycle,
somewhat mitigating the higher risk of the segment.

At the time of the transaction closing, S&P expects the group to
have negative tangible equity, primarily driven by the goodwill
arising from Cinven and CVC's acquisition.  S&P expects the
group's good internal capital generation will lead to growth in
tangible equity and our risk-adjusted capital (RAC) ratio.
However, S&P expects weak capitalization, by our measures, to
remain a constraining factor over our 12-month outlook horizon.
In calculating the group's total adjusted capital, S&P reduces
total equity by the amount of projected goodwill, as intangible
assets are not loss absorbing.  S&P notes that Nemean BidCo and
its operating companies within the group are not subject to
prudential regulation.

"Our risk position assessment modifies, where necessary, the view
under our capital assessment of a company's exposure to losses
and ability to absorb them.  Overall, we consider that our RAC
ratio adequately captures the risks that the group is exposed to.
This balances NewDay's proven pricing strategy with its bias
toward near-prime credit cards, which is not captured within our
standard risk weight for all credit card exposures.  We believe
that a sophisticated pricing strategy is of paramount importance
for a near-prime business to be successful in the long run.  The
group follows a "low and grow" strategy, setting up very low
initial credit card limits (starting from as low as GBP100) and
gradually increasing those, as the borrower proves its
creditworthiness. This helps to control exposure to "never-pay"
customers.  In addition, risk-adjusted margins are stable through
the cycle and better than some of its peers.  The company has
adequate loss experience with charge-off rates in line with the
industry average (4.2% for co-brand segment and 11.9% for near-
prime own-brands segment).  We note the general trend of reducing
charge-off rates in the last five years, as the market
environment has stabilized post financial crisis," S&P said.

The group funds itself through publically listed asset-backed
term debt and variable rate funding notes.  S&P's assessment of
the group's funding profile reflects its expectation that its
stable funding ratio will remain comfortably above 100% over the
next 12 months.  In S&P's view, this demonstrates that the firm's
stable funding sources (two scale securitization facilities and
senior secured notes due after more than one year) adequately
cover its stable funding needs (which arise primarily from
financing longer-term and less liquid assets).  While S&P
recognizes that the group will be required to regularly undertake
further funding initiatives to meet its growth ambitions, S&P
considers the staggered maturity profile of the securitizations
and track record of renewing funding well in advance of
maturities to be supportive.  The familiarity of credit cards as
a securitized asset class and the group's adequate investor base
also support the group's access to funding.

S&P views the group's liquidity as adequately managed.  This view
acknowledges the relatively simple balance sheet, predictable
cash flows from interest payments, and the absence of significant
short-term debt maturities.  The group aims to keep a
satisfactory cash buffer available at all times (over and above
the cash that is encumbered with its securitization facilities),
which it would be able to drawn on during periods of market
stress.

S&P made a positive one-notch comparable ratings adjustment to
the group credit profile, mainly reflecting its good earnings
generation not fully reflected elsewhere in the rating construct.
S&P also took note of the group's low levels of fraud and absence
of material payment protection insurance conduct costs relative
to peers, when making this adjustment.

S&P currently believes that U.K. banks and U.K. finance companies
face the potential for uncertain future operating conditions
following the Brexit vote.  Despite S&P's negative economic risk
trend, it has assigned a stable outlook to Nemean BidCo.  A
weakening economic environment could lead to net interest margin
pressure, an impact on asset prices, and a rise in unemployment
and credit losses.  However, S&P notes that unemployment and
credit losses are currently at historical lows and, if they rise,
it will be from a particularly low base.  S&P also considers the
group's specific focus on unsecured lending, resulting in high
margin earnings, to provide an element of resiliency against
potential headwinds.

S&P's issue rating of 'B' on the proposed senior secured notes
issued by Nemean BondCo reflects the group's significant
proportion of encumbered assets relative to the rated debt, given
its funding profile.  When a high proportion of assets are
encumbered, they are not available to help repay obligations
until the secured debt has been repaid, which in S&P's view,
affects prospects for the proposed senior secured notes.  S&P
calculates adjusted assets as total assets minus goodwill and
intangibles, minus assets pledged to the securitization
facilities given that it is nonrecourse.

The stable outlook on Nemean BidCo reflects S&P's expectation
that, despite the negative trend we see for economic risks
following the U.K.'s decision to leave the EU, the group will
maintain its solid underlying earnings performance, consistent
strategic focus, and acceptable asset quality for its chosen
market segment over S&P's 12-month rating horizon.  This
conclusion is supported by these factors:

   -- The group is not directly exposed to the U.K. property
      market, parts of which exhibited higher volatility after
      the Brexit vote;

   -- As the Bank of England lowered its base rate, interest
      margins of banks and nonbank financial companies are under
      pressure.  However, the group's specific focus on segments
      of the credit card market means that its business is higher
      margin relative to U.K. banking peers, and is therefore
      potentially able to absorb margin pressure better than
      banks; and

   -- Credit losses and arrears may rise over time from currently
      very low levels.  However, S&P considers that the group's
      segment with already higher charge-offs relative to
      universal banks is more stable through the cycle in terms
      of credit losses.

S&P could raise the ratings if the consolidated group's RAC ratio
increases comfortably and sustainably above 3%.  It could occur
if S&P observes sustainable growth without an associated
deterioration in underwriting standards or pricing, increasing
bottom-line earnings, and high profit retention.

S&P could lower the ratings if asset quality deterioration or
regulatory developments raised concerns over the group's
operational risks and underwriting standards.  S&P could also
take a negative rating action as a result of structural
subordination, for example, if the group's operating companies
issue debt in addition to the existing securitization.


* UK: Number of Insolvent Scottish Businesses Up 7% in 2016
-----------------------------------------------------------
Scott Wright at Herald Scotland reports that the number of
Scottish businesses which entered insolvency climbed by 7% last
year, as the worst fears about the fall-out from the oil and gas
downturn were not realised in the north east.

But, while conditions for companies in Scotland have been
described as "relatively stable", business owners are expected to
behave cautiously until Article 50 is triggered and there is
clarity over what Brexit means, Herald Scotland notes.

According to Herald Scotland, Blair Nimmo, head of restructuring
at KPMG, delivered this assessment as the latest figures collated
by the accountancy giant found there were 969 insolvencies in
Scotland last year, up from 904 in 2015.

Within that the number of company liquidations was up by 3%, at
870, compared with the previous year, while the administrations
tally dropped 3% to 99, Herald Scotland states.  Administrations
tend to affect larger organizations, Herald Scotland says.

While the insolvency total grew last year compared with 2015,
KPMG, as cited by Herald Scotland, said there was 26% fall in
appointments in the last three months of the year, to 206.  This
was down 27% on the previous quarter, Herald Scotland discloses.



                            *********

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 2017.  All rights reserved.  ISSN 1529-2754.

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

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

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


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