TCREUR_Public/170125.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 25, 2017, Vol. 18, No. 18


                            Headlines


C Z E C H   R E P U B L I C

OKD: Trade Minister Proposes Acquisition of Business by Diamo


G E R M A N Y

DRDISH TELEVISION: Looks for Investors Following Insolvency
EUROMAR COMMODITIES: ABN Amro Seeks Probe Into Missing US$300MM
YOUBISHENG GREEN: Cologne Court Opens Insolvency Proceedings


G R E E C E

GREECE: EU Creditors Implement Short-Term Debt Relief Measures


I R E L A N D

ARDAGH PACKAGING: Moody's Rates New $1BB Sr. Notes Due 2025 'B3'
AVOCA CLO VIII: S&P Affirms BB Rating on Class E def Notes
REGENCY HOTEL: High Court Appoints Examiner


I T A L Y

FIAT CHRYSLER: DBRS Reviews BB Rating w/ Developing Implications


K A Z A K H S T A N

DELTA BANK: S&P Lowers Counterparty Credit Rating to 'CCC-'


L U X E M B O U R G

MALLINCKRODT: FTC Settlement No Impact on Moody's Ba3 CFR


N E T H E R L A N D S

ALPHA 2: S&P Assigns Preliminary 'B' CCR, Outlook Stable
CADOGAN SQUARE CLO IV: Moody's Affirms Ba3 Rating on Cl. E Notes
DELFT 2017: DBRS Rates Class E Notes BB (low) (sf)
EUROSAIL-NL 2008-A: S&P Lowers Ratings on 3 Note Classes to 'D'


R U S S I A

METTALURGICAL COMMERCIAL: Moody's Hikes LT Deposit Ratings to B1
PERESVET JSCB: Moratorium on Satisfying Creditors' Claims Imposed
RUSAL CAPITAL: Moody's Rates New Senior Unsecured Notes 'B1'


S W I T Z E R L A N D

CREDIT SUISSE: S&P Rates Proposed High-Trigger Notes 'BB-'


U N I T E D   K I N G D O M

B&M EUROPEAN: S&P Assigns 'BB-' Long-Term CCR, Outlook Stable
GOWER HOTEL: Wedding Venue Closure Devastates Bride-to-be
NEW LOOK: Credit Quality Ahead of Peers, Moody's Says
PMG LEISURE: Goes Into Administration; Morecambe FC Unaffected
PREMIER FOODS: Moody's Changes Outlook to Neg.; Affirms B2 CFR


X X X X X X X X

* DBRS Puts 27 European Banking Groups' Sub. Debt Under Review


                            *********



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C Z E C H   R E P U B L I C
===========================


OKD: Trade Minister Proposes Acquisition of Business by Diamo
-------------------------------------------------------------
Krystof Chamonikolas at Bloomberg News reports that Industry and
Trade Minister Jan Mladek plans to propose to the Czech
government that New World Resources' OKD unit be purchased by
state-owned company Diamo.

According to Bloomberg, Diamo would pay CZK1 for the insolvent
company and the state would then have to invest in "controlled"
closing of operations.

Mr. Mladek would be "glad" if OKD finds a private buyer who keeps
mining operations and employment, provides "some" settlement with
creditors, and invests in gradual closing of mines, Bloomberg
discloses.

The private owner would have to give financial guarantees to
ensure no further state aid will be needed, Bloomberg notes.



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G E R M A N Y
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DRDISH TELEVISION: Looks for Investors Following Insolvency
-----------------------------------------------------------
Broadband TV News reports that TecTime TV is looking for new
investors and co-operation partners, Christian Mass, managing
director of operating company DrDish Television said.

DrDish Television earlier filed for insolvency at the district
court in Munich. On January 2, 2017, the court placed the
company's assets under preliminary receivership and appointed
Munich-based lawyer Dr Matthias Hofmann as the preliminary
insolvency administrator, the report discloses.

Mr. Mass said two potential investors have already contacted the
insolvency administrator, the report relates. There are also
parties interested in co-operations, for example in the areas of
production and studios, he added. "The strong support we receive
from all sides is worth a lot to us."

The insolvency was caused by an investor backing out on short
notice for personal reasons on December 15, 2016, Mr. Mass told
Broadband TV News. "We didn't have a choice and had to pull the
emergency break."

The report says the live-stream of TecTime TV (formerly called
Dr.Dish TV) on the channel's website continues, but the satellite
distribution on Astra (19.2 East) has been terminated for now.

"The collaboration with the insolvency administrator work well,"
the report quotes Mr. Mass as saying. "Depending on the course of
the discussions with the interested parties, it would take around
three months "to reach the point again where we were.""

The employees are currently laid off, the report notes. The
target would be to keep the core workforce in the editorial and
film cutting areas, but convert some of the jobs from permanent
positions to freelance work, Mr. Mass told Broadband TV News.

DrDish Television operates TecTime TV, a German thematic channel
covering technology and multimedia.


EUROMAR COMMODITIES: ABN Amro Seeks Probe Into Missing US$300MM
---------------------------------------------------------------
Nico Grant, Agnieszka de Sousa and Isis Almeida at Bloomberg News
report that ABN Amro wants to know what became of more than
US$300 million which it claims was collateral that the bankrupt
U.S. unit of cocoa supplier Transmar Group may have moved to a
European affiliate.

According to Bloomberg, the Dutch bank asked a federal judge in
Manhattan for permission "to investigate the facts and
circumstances surrounding the apparent disappearance of hundreds
of millions of dollars in collateral and other property" from the
estate of Transmar Commodity Group Ltd., which filed for
bankruptcy in New York on the last day of 2016.

ABN Amro, which is an agent for a lender group on the US$400
million Transmar Commodity credit facility, said in a Jan. 17
court filing that about US$313 million in asset value vanished
from the company's books sometime after the end of October,
Bloomberg relates.  The bank, as cited by Bloomberg, said some of
the assets may have been transferred to Transmar affiliate
Euromar Commodities GmbH.

Euromar, which owns a cocoa-processing factory in Fehrbellin,
Germany, began its own insolvency proceedings in the country in
early December, Bloomberg recounts.  The processor was partly
felled by the U.K.'s decision to leave the European Union, which
weakened the pound and drove up prices for London cocoa futures,
Bloomberg notes.

According to Bloomberg ABN Amro said that so far Transmar hasn't
complied with requests for information, and the bank wants the
U.S. court's permission to issue subpoenas so it can examine
documents and question company officers about the fate of the
assets.  Other banks lending to Transmar include Societe Generale
SA, BNP Paribas SA, Natixis SA and Macquarie Bank, Bloomberg
discloses.

Transmar Commodity Group sought U.S. bankruptcy court protection
from creditors on Dec. 31, saying it owes more than US$400
million to banks and other creditors, Bloomberg relays.

The case is In re Transmar Commodity Group Ltd., 1:16-bk-13625,
U.S. Bankruptcy Court, Southern District of New York (Manhattan).


YOUBISHENG GREEN: Cologne Court Opens Insolvency Proceedings
------------------------------------------------------------
Reuters reports that the District Court Cologne has decided to
open on Jan. 3 the insolvency proceedings over the assets of
Youbisheng Green Paper AG.

Youbisheng Green Paper AG is a Germany-based holding company
engaged in the clean technology sector and a manufacturer of
linerboard in the combined Fujian and Guangdong region of China.
The Company's product is used in material packaging for various
industries. The Company's customers include printing and
packaging companies, and manufacturers of cardboards. Its product
portfolio is divided into three categories: Single-sided
Testliners; Double-sided Testliners, and Anti Counterfeit
Linerboard. The products are made from up to 100% recycled fiber.
The Guige-branded linerboard is offered in weights ranging from
120 grams per square meter to 337 grams per square meter in
natural brown and yellow or red colors. In August 2014,
preliminary insolvency proceedings and an appointment of a
preliminary insolvency administrator were initiated.


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G R E E C E
===========


GREECE: EU Creditors Implement Short-Term Debt Relief Measures
--------------------------------------------------------------
Mehreen Khan at The Financial Times reports that Greece's EU
creditors have implemented measures to alleviate the country's
short-term debt burden, after a setback at the end of last year
over Athens' decision to provide a Christmas bonus to its poorest
pensioners.

According to the FT, the European Stability Mechanism -- Greece's
largest single creditor, which pools funds from its fellow member
states -- gave the green light to a series of modest measures
that will cut the country's 180% debt-to-GDP ratio by 20
percentage points over the next 47 years.

The measures to stretch out repayments include a bond swap to fix
exchange rates for debt used to recapitalize Greek banks and a
swap arrangement that will ensure some of Greece's interest rate
payments remain at reasonable levels, the FT says.

An additional move to smooth the country's debt repayments will
be completed at the end of the month, the FT notes.

"The measures . . . are an important step towards improving Greek
debt sustainability," the FT quotes Klaus Regling, head of the
ESM bailout fund, as saying.  "The short-term measures will ease
Greece's debt burden, but the ultimate success of the program
lies in the continued implementation of reforms by the Greek
government."

Despite having been notionally agreed to in May last year,
short-term debt relief was temporarily shelved by the EU in
December, the FT states.

Eurozone finance ministers will be meeting later this week to
discuss Greece's progress in implementing reforms as part of the
country's EUR86 billion bailout program, the FT discloses.


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I R E L A N D
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ARDAGH PACKAGING: Moody's Rates New $1BB Sr. Notes Due 2025 'B3'
----------------------------------------------------------------
Moody's Investors Service has assigned a B3 rating to the new
USD1,000 million senior notes due 2025 issued by Ardagh Packaging
Finance plc and Ardagh Holdings USA Inc., wholly owned
subsidiaries of Ardagh Group S.A. the ultimate parent company of
Ardagh Packaging Group Ltd (Ardagh, B2 stable), a leading
supplier of glass and metal containers.

All other ratings including the B2 corporate family rating (CFR)
and B2-PD probability of default rating (PDR) of Ardagh and
existing instrument ratings of its subsidiaries remain unchanged.

Moody's will withdraw the B3 rating on the USD415 million 6.250%
senior notes due 2019 issued by Ardagh Packaging Finance plc
following their redemption.

The outlook on all ratings is stable.

RATINGS RATIONALE

Ardagh's use of the net proceeds from its issuance of new senior
notes due 2025 together with USD300 million of available cash on
balance sheet to repay the existing 6.25% senior notes due 2019
in full and partially redeem the company's L+300 bps senior
secured floating rate notes (FRNs) also due 2019 is credit
positive.

The refinancing will support Ardagh's intention to repay the
remainder of the FRNs from an IPO in the region of USD200 million
to USD250 million, which the company has publicly stated is
planned to take place in 2017. In turn, this will further improve
the company's debt maturity profile with the nearest maturity
moved out to 2021 from 2019.

The modest reduction in leverage resulting from the transaction
is beneficial to the business at a time when it is undergoing a
major business integration of the assets recently acquired from
Ball Corporation (Ba1 stable) in addition to ongoing
restructuring operations, particularly in the metals business.

Moody's expects the transaction to result in no material impact
on the net cash interest cost to Ardagh and with estimated cash
balances in excess of EUR700 million as at the end of 2016,
liquidity in the business remains good.

While Moody's favourably views the progress Ardagh continues to
make integrating the assets acquired from Ball Corporation which
is reflected in improving trading performance and a continued
improvement in cash generation, Ardagh's rating remains
constrained by the high level of adjusted leverage, which Moody's
now expects will remain above 7.0x through 2017.

Given that Ardagh is currently weakly placed in the B2 rating
category, any material deterioration in the operating environment
of the business, in particular relating to the macro-economic
outlook of faster-growing markets in which Ardagh operates,
expected volatility in raw material prices, or weakening of
operating margins due to competitive pressures may result in
negative rating pressure.

RATIONALE FOR THE STABLE OUTLOOK

The rating outlook is stable reflecting Moody's expectation that
Ardagh will not enter into further debt-financed acquisitions
that would result in an increase in leverage, or fund further
dividend payments until operational stability has been achieved
with the Ball/Rexam assets being integrated into the overall
business. The stable outlook also incorporates Moody's
expectation that Ardagh will gradually deleverage over the next
12-18 months and that the anticipated build-up of cash will be
used to reduce debt.

WHAT COULD CHANGE THE RATING -- UP/DOWN

Given Ardagh's current weak positioning in the B2 category, near-
term upward pressure on the company's ratings is unlikely.
However, the ratings could come under positive pressure should
Ardagh be able to reduce adjusted debt/EBITDA sustainably below
5.5x and maintain free cash flow to debt above 5%.

The ratings could come under negative pressure should the company
fail to meet the conditions for a stable outlook, or if adjusted
debt/EBITDA fails to reduce below 7.0x in the next 12-18 months.

PRINCIPAL METHODOLOGY

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

Ardagh Group S.A., registered in Luxembourg, is a leading
supplier of glass and metal containers. Pro forma for the
acquisition of the Ball/Rexam assets, the company generated sales
of approximately EUR7.8 billion in 2015.


AVOCA CLO VIII: S&P Affirms BB Rating on Class E def Notes
----------------------------------------------------------
S&P Global Ratings raised its credit ratings on Avoca CLO VIII
Ltd.'s class A2, B def, C def, and D def notes.  At the same
time, S&P has affirmed its ratings on the class A1 and E def
notes.

The rating actions follow S&P's assessment of the transaction's
performance based on the November 2016 trustee report, S&P's
credit and cash flow analysis, and recent transaction
developments.  S&P has applied its relevant criteria.

Since S&P's Nov. 23, 2015 review, the class A1 notes have
continued to amortize, with approximately EUR122 million of both
interest and principal proceeds being used to deleverage the
class A1 notes.

In S&P's view, the repayment of this class of notes has resulted
in increased available credit enhancement for all rated tranches.

S&P's analysis shows that the average credit quality of the
portfolio has improved since its last review.  This includes the
proportion of assets that S&P considers to be rated in the 'CCC'
category ('CCC+', 'CCC', or 'CCC-'), which has decreased since
S&P's previous review.  Currently there are no defaulted assets
in the portfolio.

S&P subjected the capital structure to its cash flow analysis,
based on S&P's updated cash flow corporate collateralized debt
obligations (CDO) criteria, to determine the break-even default
rate (BDR) at each rating level.  S&P used the reported portfolio
balance that it considered to be performing, the principal cash
balance, the weighted-average spread, and the weighted-average
recovery rates that S&P considered to be appropriate.

S&P incorporated various cash flow stress scenarios, using
various default patterns, levels, and timings for each liability
rating category, in conjunction with different interest rate
stress scenarios.  To help assess the collateral pool's credit
risk, S&P used CDO Evaluator 7.02 to generate scenario default
rates (SDRs) at each rating level.  S&P then compared these SDRs
with their respective BDRs.

Taking into account the observations outlined above, S&P
considers that the available credit enhancement for the class A2,
B def, C def, and D def notes is now commensurate with higher
ratings than those previously assigned.  S&P has therefore raised
its ratings on these classes of notes.  S&P's analysis also
indicates that the available credit enhancement for the class A1
and E def notes is commensurate with their currently assigned
ratings.  S&P has therefore affirmed its ratings on these classes
of notes.

Avoca CLO VIII is a cash flow corporate loan collateralized loan
obligation (CLO) transaction that securitizes loans to primarily
speculative-grade corporate firms.

RATINGS LIST

Avoca CLO VIII Ltd.
EUR508 Million Floating-Rate Notes

Class                  Rating
               To                  From

Ratings Raised

A2             AAA (sf)            AA+ (sf)
B def          AAA (sf)            AA- (sf)
C def          AA (sf)             A+ (sf)
D def          A (sf)              BBB+ (sf)

Ratings Affirmed

A1             AAA (sf)
E def          BB (sf)


REGENCY HOTEL: High Court Appoints Examiner
-------------------------------------------
Brendan O'Loughlin at 98FM reports that an examiner has been
appointed to the Regency Hotel.

According to 98FM, it's hoped it can secure the hotel's future
and the future of 109 jobs.

It's understood the hotel took a knock to its business following
last year's shooting, 98FM recounts.

On Jan. 23, Regan Development Limited made a successful
application to the High Court for the company to be placed into
Interim Examinership, 98FM relates.

According to 98FM, a statement explained that "the High Court was
satisfied that the hotel continues to trade well and the company
had a reasonable prospect of survival."

Regan Development Limited said the court's approval for Interim
Examinership would allow them time to reach a scheme of agreement
with their creditors, 98FM relays.

The Regency Hotel, which is home for a number of homeless
families, remains open for business, 98FM notes.


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I T A L Y
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FIAT CHRYSLER: DBRS Reviews BB Rating w/ Developing Implications
----------------------------------------------------------------
DBRS Limited on January 16 placed the ratings of Fiat Chrysler
Automobiles N.V. (FCA or the Company), formerly rated at BB (low)
with Positive trend, Under Review with Developing Implications.
The rating action follows the January 12, 2017, announcement of
the U.S. Environmental Protection Agency (EPA) that it had issued
to FCA (as well as to subsidiary FCA US LLC (FCA US)) a notice of
violation of the Clean Air Act in connection with the Company's
2014-2016 model year light duty vehicles sold in the U.S.
equipped with 3.0 litre diesel engines.

The above-cited vehicles consist of the Jeep Grand Cherokee and
Ram 1500 nameplates and total approximately 104,000 units. The
EPA is alleging that elements of these vehicles' emission control
software, referred to as Auxiliary Emission Control Devices
(AECDs), were not disclosed by the Company, thereby violating
certain provisions of the Clean Air Act. The EPA further
indicated that it is investigating as to whether the AECDs in
question constitute "defeat devices" (that are deemed to unduly
reduce the effectiveness of emissions control systems under
conditions that may reasonably be expected under normal vehicle
operation and use). The EPA added that the Company faces fines up
to a maximum potential amount of approximately USD 44,500 per
vehicle, which theoretically could total up to USD 4.6 billion
(given the population of affected vehicles in the United States).

DBRS notes that FCA disputes the allegations of the EPA; the
Company added further that it intends to present its case to the
EPA and work with the incoming administration to resolve the
matter.

While it remains premature to reasonably estimate any associated
cost total possibly stemming from the EPA's recent allegations
(the EPA Allegations), DBRS observes that the Company's ability
to absorb any remotely foreseeable costs appears quite
considerable, as FCA's liquidity (bolstered by the removal last
year of the former ring-fencing of FCA US) is sizeable, with
available liquidity as of September 30, 2016, amounting to EUR
23.2 billion. This notwithstanding, DBRS notes further, however,
that any significant costs could considerably undermine the
Company's current business plan (which was already deemed
somewhat ambitious by DBRS given aggressive underlying sales
growth assumptions, particularly with respect to the Jeep brand
and the Chinese market). In particular, FCA's net industrial cash
target, projected to be in the range between EUR 4.0 billion to
EUR 5.0 billion by year-end 2018, would appear to be at risk in
the event that a material payout would result from subsequent
developments stemming from the EPA Allegations.

DBRS's review will assess ongoing developments, including any
additional actions taken by regulatory authorities in the U.S,
including the EPA but also notably the Department of Justice, and
potentially across other regions. DBRS will also monitor FCA's
vehicle sales in the upcoming months to observe as to whether the
EPA Allegations will adversely impact the Company's volumes going
forward, thereby undermining future profitability and cash flow.


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


DELTA BANK: S&P Lowers Counterparty Credit Rating to 'CCC-'
-----------------------------------------------------------
S&P Global Ratings said that it has lowered its long-term
counterparty credit rating on Delta Bank JSC to 'CCC-' from
'CCC+'.  At the same time, S&P lowered its Kazakhstan national
scale rating on the bank to 'kzCCC-' from 'kzB-'.

S&P is keeping all the ratings, including the 'C' short-term
counterparty credit rating, on CreditWatch, where S&P placed them
on Dec. 30, 2016, and have changed the implications to negative
from developing.

The rating actions stem from S&P's concerns regarding the
pressures on Delta Bank's liquidity position.  Delta Bank's
liquid assets, including securities available for repurchase
transactions, had reduced to less than 4% of total assets as of
Jan. 20, 2017.  In the second half of January, Delta Bank's
scheduled debt repayments exceed its current liquid assets,
although S&P believes shareholder support will allow the bank to
meet them.

Delta Bank requested support from the central bank (NBK) in
December 2016.  S&P expected Delta Bank to have received support
in early January 2017, but this has not yet occurred.  Delta Bank
is still in discussions with the NBK about the parameters of the
support.  S&P has no clarity on whether the NBK will provide this
support or when it will do so.

However, the bank's shareholders have already provided
Kazakhstani tenge (KZT) 5 billion (about $14 million) to Delta
Bank.  They plan to inject an additional KZT15 billion in cash by
Jan. 25, 2017, which should be sufficient to repay a KZT10
billion domestic bond due on Jan. 31, 2017.

Still, S&P cannot exclude further outflows of wholesale funds.
Delta Bank's funding is significantly more reliant on wholesale
sources than other Kazakh banks, which are predominantly funded
by customer deposits.  Wholesale funding in Kazakhstan is highly
rating and confidence sensitive.  Funding from state-related
companies and financial institutions accounted for about 70% of
Delta Bank's funding as of year-end 2016, while the 20 largest
corporate depositors accounted for the majority of the corporate
deposit portfolio.

With about KZT410 billion (about $1.2 billion) of assets at year-
end 2016, Delta Bank is the 14th largest bank in Kazakhstan, with
a 1.6% market share by assets.

S&P expects to resolve the CreditWatch within the next few weeks,
as soon as it has greater clarity on potential support from the
NBK and Delta Bank's liquidity situation in over the coming
months.

S&P may lower the ratings to the 'CC' category if management's
actions and/or NBK support appear unlikely to be sufficient to
prevent a default.  S&P could also lower the ratings to 'SD'
(selective default) or 'D' (default) if it discovers that the
bank has stopped servicing some or all of its obligations.

S&P could affirm the ratings or even raise them if the bank's
liquidity position were to stabilize, enabling the bank to
service its debt obligations in full and on time.


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


MALLINCKRODT: FTC Settlement No Impact on Moody's Ba3 CFR
---------------------------------------------------------
Moody's Investors Service commented that Mallinckrodt's $100
million settlement agreement with the Federal Trade Commission
(FTC) is credit negative. The settlement is credit negative
primarily given the reduction in cash in early 2017. There is no
change to the company's Ba3 Corporate Family Rating or stable
outlook.

Luxembourg-based Mallinckrodt International Finance SA is a
subsidiary of Chesterfield, UK-based Mallinckrodt plc
(collectively "Mallinckrodt"). Mallinckrodt is a specialty
biopharmaceutical company with annual revenues of approximately
$3.4 billion for the twelve months ended September 30, 2016.


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


ALPHA 2: S&P Assigns Preliminary 'B' CCR, Outlook Stable
--------------------------------------------------------
S&P Global Ratings said that it assigned its preliminary 'B'
long-term corporate credit rating to Alpha 2 B.V. (Netherlands),
the holding company of Germany-headquartered Atotech B.V.,
manufacturer of specialty chemicals and equipment for high
technology electroplating applications.  The outlook is stable.

At the same time, S&P assigned its preliminary 'B+' issue rating
to the proposed $1.4 billion term loan B and $250 million
revolving credit facility (RCF).  S&P also assigned its
preliminary 'CCC+' issue rating to the proposed $425 million
senior unsecured notes to be issued by financing entities Alpha 3
B.V. and Alpha US Bidco, Inc.  The recovery rating on the term
loan and the RCF is '2', indicating S&P's expectation of recovery
prospects for creditors in the higher half of the 70%-90% range
in the event of payment default.  The recovery rating on the
notes is '6'.

S&P's final issue ratings will depend on its receipt and
satisfactory review of Alpha's executed transaction
documentation. Accordingly, the ratings on the proposed issues
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 they depart from materials reviewed,
S&P reserves the right to withdraw or revise our ratings.
Potential changes include, but are not limited to, utilization of
the proceeds, maturity, size and conditions of the facilities,
financial and other covenants, security, and ranking.

The ratings follow the announcement that Atotech, a leading
manufacturer of specialty chemicals and equipment for high
technology electroplating applications, is being acquired from
Total S.A. by funds from private equity firm Carlyle.  The
acquisition will be funded by the term loan B and senior
unsecured notes issued by Alpha 3 B.V. and Alpha US Bidco, Inc.,
as well as by $1.2 billion common and preferred equity to be
provided by the sponsor.  Based on preliminary documentation, S&P
views the preferred equity as equity under its criteria.
Following the transaction, Atotech will be 100%-owned by Carlyle.

Atotech provides specialized chemistry for several end-market
applications: in the general metal finishing (GMF) division this
includes decorative, wear resistant, or corrosion protection
coatings for, among others, the automotive industry (about 50% of
GMF's 2015 sales), while the electronics division is focused on
providing advanced plating and surface treatment technologies for
plated circuit boards and semiconductors used in the
communication (42% of electronics sales), and other industries.
S&P's view of Atotech's business is supported by its leading
market positions as a supplier of plating solutions -- notably in
printed circuit board, with a 31% market share (closest
competitor Platform Specialty holds 19%), and in general metal
finishing, with a 19% market share (Platform; 19%).  Atotech's
leadership is underpinned by its consistently high research and
development (R&D) investments at around 9% of sales, which ensure
that the latest technology and innovation is offered to
customers.  The track record of well established, long-term
relationships supported by R&D collaboration and joint
development of high-specification products in Atotech's extensive
network of TechCentres further strengthen customer loyalty and
create barriers to entry for competitors. Finally, S&P recognizes
Atotech's earnings stability, demonstrated during the crisis in
2009, with consistently high EBITDA margins of more than 20%.

S&P's assessment of Atotech's business profile is constrained by
its exposure to cyclical end markets, notably communication and
automotive, and by limited revenue visibility, although partly
mitigated by strong client relationships.

S&P views Atotech's starting leverage as relatively high, with
adjusted gross debt to EBITDA of about 6.3x-6.5x in 2017 under
S&P's base-case scenario.  This is based on these assumptions:

   -- Neutral revenue growth in 2017 and a 2%-4% increase in
      2018, reflecting S&P's expectation of growing demand for
      plating in consumer electronics, driven by innovation of
      next generation intelligent devices, and automotive
      industries, fuelled by the desire for light-weight
      solutions.   Reported EBITDA margins of 27%-28% in 2017 and
      more than 29% in 2018, supported by comprehensive cost
      efficiencies in the area of procurement and asset
      utilization, to be introduced by Carlyle.  R&D expenditure
      at 9% of sales.

   -- Capital expenditure (capex) of $42 million in 2017 and
      $35 million in 2018.

   -- No dividends, acquisitions, or disposals.  S&P understands
      that the sponsor intends to expand the company organically
      and any bolt-ons would relate primarily to the acquisition
      of IP.

Based on these assumptions, S&P arrives at these forecast for
2017 and 2018:

   -- Reported EBITDA (after restructuring costs) of $290
      million-$300 million in 2017 and $320 million-$330 million
      in 2018.
   -- Adjusted gross debt to EBITDA ratio of about 6.3x-6.5x in
      2017 and about 6.0x in 2018.
   -- Significant positive free operating cash flow (FOCF).

The stable outlook reflects S&P's view that Atotech will be able
to report resilient and growing EBITDA of at least $290 million
in 2017, with reported margins of 27%-28%.  Under S&P's base
case, this EBITDA should lead to gross leverage of Atotech of
6.3x-6.5x at year-end 2017, which S&P views as in line with
6.0x-7.0x, commensurate with the rating.  S&P also anticipates
that Atotech will maintain an EBITDA interest coverage ratio of
more than 3.0x and generate substantial positive FOCF, and that
its liquidity and headroom under financial covenants will remain
adequate.

S&P could upgrade Atotech in the next 12 months as a result of
stronger EBITDA and sustainable deleveraging below 6.0x on a
gross adjusted basis.  The deleveraging could happen, for
example, because of faster growth of Atotech's market share than
S&P anticipates or if reported margins consistently improved to
above 27% as a result of cost efficiencies.  Upside potential
could also follow active repayments of the term loan, although
the commitment of the private equity sponsor to lower leverage
will be important in any upgrade considerations.

S&P views the downside risk as remote.  S&P might lower the
ratings if Atotech's reported EBITDA declines below $260 million
in 2017 without near-term recovery prospects, for example as a
result of weaker margins, end-market demand, or currency impact.
Such a decline would correspond to an increase in Atotech's
leverage above 7.0x on a gross adjusted basis, even though S&P
would still expect the company to generate positive FOCF.  S&P
could also lower the rating if Atotech experienced difficulties
in repatriation of cash from its Chinese subsidiaries, which, if
prolonged, could put pressure on liquidity.


CADOGAN SQUARE CLO IV: Moody's Affirms Ba3 Rating on Cl. E Notes
----------------------------------------------------------------
Moody's Investors Service has taken the following rating actions
on notes issued by Cadogan Square CLO IV B.V.:

Issuer: Cadogan Square CLO IV B.V.

EUR22.5M Class C Senior Secured Deferrable Floating Rate Notes
due 2023, Upgraded to Aa1 (sf); previously on Sep 3, 2015
Upgraded to Aa3 (sf)

EUR26.25M Class D Senior Secured Deferrable Floating Rate Notes
due 2023, Upgraded to Baa1 (sf); previously on Sep 3, 2015
Upgraded to Baa2 (sf)

EUR3M Class X Combination Notes due 2023, Upgraded to Baa1 (sf);
previously on Sep 3, 2015 Upgraded to Baa2 (sf)

EUR343.75M (current balance EUR 84,470,957.14) Class A Senior
Secured Floating Rate Notes due 2023, Affirmed Aaa (sf);
previously on Sep 3, 2015 Affirmed Aaa (sf)

EUR25M Class B-1 Senior Secured Floating Rate Notes due 2023,
Affirmed Aaa (sf); previously on Sep 3, 2015 Upgraded to Aaa (sf)

EUR15M Class B-2 Senior Secured Fixed Rate Notes due 2023,
Affirmed Aaa (sf); previously on Sep 3, 2015 Upgraded to Aaa (sf)

EUR18.75M Class E Senior Secured Deferrable Floating Rate Notes
due 2023, Affirmed Ba3 (sf); previously on Sep 3, 2015 Upgraded
to Ba3 (sf)

Cadogan Square CLO IV B.V., issued in May 2007, is a
collateralised loan obligation ("CLO") backed by a portfolio of
mostly high yield European loans. The portfolio is managed by
Credit Suisse Asset Management Limited. The transaction's
reinvestment period ended in July 2013.

RATINGS RATIONALE

The upgrades of the ratings of notes are primarily a result of
the partial redemption of the class A notes and subsequent
increases of the overcollateralization ratios (the "OC ratios")
of all classes of notes. The class A notes have partially
redeemed by approximately EUR259.3 million (or 75% of their
original balance) including EUR41.2 million at the last payment
date in July 2016. As a result of the deleveraging the OC ratios
of the remaining classes of notes have increased. According to
the December 2016 trustee report, the classes A/B, C, D and E
ratios are 170.61%, 144.49%, 122.60% and 110.62% respectively
compared to levels just prior to the payment date in July 2016 of
154.19%, 135.75%, 119.13% and 109.55%.

The rating on the combination notes addresses the repayment of
the rated balance on or before the legal final maturity. For
class X, the rated balance at any time is equal to the principal
amount of the combination note on the issue date minus the sum of
all payments made from the issue date to such date, of either
interest or principal. The rated balance will not necessarily
correspond to the outstanding notional amount reported by the
trustee.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers. In its base
case, Moody's analysed the underlying collateral pool as having a
performing par and principal proceeds balance of EUR220.0
million, a weighted average default probability of 25.19%
(consistent with a WARF of 3440 and a weighted average life of
4.51 years), a weighted average recovery rate upon default of
45.69% for a Aaa liability target rating, a diversity score of
22.

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on
future defaults is based primarily on the seniority of the assets
in the collateral pool. Moody's generally applies recovery rates
for CLO securities as published in "Moody's Approach to Rating SF
CDOs". In some cases, alternative recovery assumptions may be
considered based on the specifics of the analysis of the CLO
transaction. In each case, historical and market performance and
a collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporates these default and recovery
characteristics of the collateral pool into its cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analyzing.

Methodology Underlying the Rating Action:

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

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

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

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

Additional uncertainty about performance is due to the following:

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

* Around 11.75% of the collateral pool consists of debt
obligations whose credit quality Moody's has assessed by using
credit estimates. As part of its base case, Moody's has stressed
large concentrations of single obligors bearing a credit estimate
as described in "Updated Approach to the Usage of Credit
Estimates in Rated Transactions," published in October 2009 and
available at
http://www.moodys.com/viewresearchdoc.aspx?docid=PBC_120461.

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

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

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


DELFT 2017: DBRS Rates Class E Notes BB (low) (sf)
--------------------------------------------------
DBRS Ratings Limited on January 11 assigned the following
provisional ratings to the securitisation notes to be issued by
Delft 2017 B.V. (Delft 2017 or the Issuer):

-- Class A notes rated AAA (sf)
-- Class B notes rated AA (sf)
-- Class C notes rated A (sf)
-- Class D notes rated BBB (sf)
-- Class E notes rated BB (low) (sf)

The Class A notes are provisionally rated for timely payment of
interest and ultimate payment of principal. The Class B notes,
Class C notes, Class D notes and Class E notes are provisionally
rated for ultimate payment of interest, subject to the net
weighted-average coupon cap (Net WAC Cap), and ultimate payment
of principal.

Delft 2017 is a proposed securitisation of a portfolio of first-
lien mortgage loans located in the Netherlands, originated by ELQ
Portefeuille I B.V. between 2006 and 2008. All of the mortgage
loans in the Delft 2017 collateral pool are to be purchased from
the EMF-NL 2008-1 B.V. (EMF 2008), which is expected to be called
on the next interest payment date, which falls on January 17,
2017. The loans are non-conforming, with significant levels of
borrowers with adverse credit history, self-certified income
and/or borrowers without employment at origination. Akin to other
mortgage portfolios in the Netherlands, the collateral pool
comprises interest-only loans (99.75%) with high loan-to-value
ratios (LTV); the weighted-average current LTV is 97.66%.

The transaction's capital structure provides 37.23% of credit
enhancement to the Class A notes in the form of subordination of
the Class B notes (12.20% in size of the total issuance), the
Class C notes (4.75% in size of the total issuance), the Class D
notes (4.75% in size of the total issuance), the Class E notes
(5.80% in size of the total issuance), the Class Z notes (9.00%
in size of the total issuance) and a non-liquidity reserve fund
(NLRF), which is to be 0.73% in size of the aggregate collateral
balance at closing. The Class B, C, D and E notes are proposed to
have 25.03%, 20.28%, 15.53% and 9.73% of credit enhancement at
closing, respectively. The Class Z notes are not rated.

The transaction structure is supported by an amortising reserve
fund, which will be 2% of the aggregate balance of the collateral
at closing. This reserve fund will be divided into a liquidity
reserve fund (LRF) and the NLRF. Liquidity support to pay
shortfalls in payment of senior fees and Class A interest
payments is to be provided by the LRF. The LRF will be equal to
2% of the outstanding Class A notes' balance, subject to a floor
of 1% of the initial Class A notes' balance. The remaining
balance of the reserve fund will form the NLRF. When all of the
Class A notes are redeemed in full, the target amount for the LRF
will reduce to zero, and any amount remaining in the LRF will add
to the NLRF. Further liquidity for the rated notes will be
provided by the NLRF and principal receipts from the mortgage
loans, which can be used to pay interest shortfalls on the rated
notes, subject to principal deficiency ledger (PDL) conditions.
The amount in the NLRF will also be used to reduce the debit
balances of the PDLs and thus provides credit support to the
rated notes.

The terms and conditions on the notes allows for deferral of
interest on the Class B, Class C, Class D and Class E notes if
available revenue funds are insufficient to cover such payments.
As such, the events of default definition does not encompass the
situation where timely payment of interest is not achieved on an
interest payment date during the life of the notes. Interest on
the Class B, Class C, Class D and Class E notes is subject to a
Net WAC Cap defined as the gross weighted average coupon that is
due but not necessarily paid on the mortgage portfolio, net of
senior fees, divided by the outstanding rated note balance as a
percentage of the outstanding mortgage portfolio balance. DBRS's
provisional ratings do not address payments of the Net WAC Cap
additional amounts, which are the amounts accrued and become
payable junior in the revenue and principal waterfalls if the
coupon due on a series of notes exceeds the applicable Net WAC
Cap. Net WAC Cap additional amounts will accrue interest at the
lower of the Net WAC Cap or the applicable coupon. The interest
payable on the notes will step up on the payment date falling
three years after the first interest payment date. DBRS has taken
into consideration the increased interest payable via its cash
flow analysis. On or after the optional redemption date (which
falls on the interest payment date in January 2020), the Issuer
may redeem all the notes in full. Notes will be redeemed at an
amount equal to the outstanding balance together with accrued
(and unpaid) interest, outstanding fees and any Net WAC Cap
additional.

The mortgage portfolio aggregates EUR157.73 million (as of 31
October 2016) with an aggregate original balance of EUR159.18
million. The portfolio benefits from approximately nine years of
seasoning during which time borrowers have benefited from
decreasing interest rates since 2008. The loans are floating-rate
loans where the interest rate payable is indexed to one-month
EURIBOR, with the exception of two loans that are still in an
initial fixed-rate period prior to switching to track one-month
EURIBOR. The coupon on the rated notes is linked to three-month
EURIBOR; hence, there is a basis risk that is unhedged in the
transaction. DBRS has used interest rate stresses for the two
indices per its "Unified Interest Rate Model for European
Securitisations" to test the effect of the unhedged basis risk on
the cash flows of the transaction. DBRS considers the risk of
negative interest rates on the mortgage receivables to be
mitigated as the servicer undertakes to floor the interest
payable on the loans at zero percent.

Upon closing, Adaxio B.V. (Adaxio) will be the named servicer and
will be responsible for the oversight and monitoring of Stater
Nederland B.V. as the delegated primary servicer. All special
servicing activity will continue to be undertaken by Adaxio. DBRS
assumes that all servicing responsibilities will be managed by
Adaxio in the future; however, no specific timeframe for the
takeover has been discussed. The servicing arrangement is
considered to be consistent with Dutch servicing practices.
Remaining consistent with the current arrangement, all mortgage
collections will be deposited via direct debit to a bankruptcy
remote "Stichting" collection foundation account held with ABN
AMRO Bank N.V. (DBRS rated at AA (COR), A (high) debt & deposits
rating), which acts as the collections account bank and the
Issuer account bank. The minimum rating criteria, downgrade
provisions and collections' sweep timing leads DBRS to conclude
that ABN AMRO Bank N.V. meets the criteria to act in such a
capacity in line with DBRS's "Legal Criteria for European
Structured Finance Transactions."

DBRS has applied two default timing curves (front-ended and back-
ended), its prepayment curves (low, medium and high conditional
prepayment rate (CPR) assumptions) and interest rate stresses as
per the DBRS "Unified Interest Rate Model for European
Securitisations" methodology. DBRS applied an additional 0% CPR
stress. DBRS's cash flow analysis found that the junior notes
were highly sensitive in scenarios when a high CPR of 20% is
assumed. Class C and Class E notes show principal shortfalls in
the scenario with rising interest rates, front-loaded defaults
and 20% CPR assumptions. Class D notes showed principal
shortfalls in two scenarios where the assumptions included rising
and declining interest rates, front-ended defaults and 20% CPR.
The rating committee elected to discount the scenarios, as the
prepayment risk is considered low in this transaction. DBRS has
tested additional sensitivities and will continue to monitor the
CPR levels as part of the ongoing surveillance process.

The legal structure and presence of legal opinions addressing the
sale and assignment of the assets to the Issuer and the
consistency with the DBRS "Legal Criteria for European Structured
Finance Transactions."

As a result of the analytical considerations, DBRS derived a Base
Case probability of default (PD) of 19.95% and loss given default
(LGD) of 38.65%, which resulted in an expected loss of 7.71%
using the European RMBS Credit Model. DBRS cash flow model
assumptions stress the timing of defaults and recoveries,
prepayment speeds and interest rates. Based on a combination of
these assumptions, a total of 16 cash flow scenarios were applied
to test the capital structure and ratings of the notes. The cash
flows were analysed using Intex DealMaker.


EUROSAIL-NL 2008-A: S&P Lowers Ratings on 3 Note Classes to 'D'
---------------------------------------------------------------
S&P Global Ratings took various credit rating actions in
Eurosail-NL 2007-2 B.V., EMF-NL 2008-2 B.V., and EMF-NL Prime
2008-A B.V.

Specifically, S&P has:

   -- Placed on CreditWatch negative our ratings on Eurosail-NL
      2007-2's class A, M, B, C, and D1 notes, EMF-NL 2008-2's
      class A1, A2, B, C, and D notes, and EMF-NL Prime 2008-A's
      class A2 and A3 notes; and

   -- Lowered to 'D (sf)' from 'B- (sf)', 'B- (sf)', and
      'CCC (sf)' its ratings on EMF-NL Prime 2008-A's class B, C,
      and D notes, respectively.

On Jan. 10, 2017, S&P was made aware that the issuers of these
three transactions had entered into a settlement agreement with
Lehman Brothers Special Financing Inc. regarding the dispute
relating to the early termination of the ISDA master agreement
that governed the swap contracts in these transactions.

Lehman Brothers Special Financing was the swap provider for
hedging the basis and interest rate risks in these transactions.
Before the termination of the swaps, the payments to the swap
counterparty ranked senior to the class A interest amounts in the
pre-enforcement revenue priority of payments.  Following the
bankruptcy of Lehman Brothers Special Financing and the swap
guarantor Lehman Bros. Holdings Inc., the early swap termination
payment modification provisions enabled the early termination
final payments to the swap counterparty to rank subordinate to
the reserve fund replenishment in each transaction.  At the time
of early termination, the swaps were in-the-money in favor of the
swap counterparty, Lehman Brothers Special Financing.

A U.S court decision in January 2010 casts doubt on the
enforceability of these payment modification provisions when it
involves U.S. swap counterparties.

S&P understands that the bankruptcy estate of Lehman Brothers
Special Financing commenced a claim against all issuers against
these payment modifications.  To settle these claims, the trustee
for all three transactions has agreed to an out-of-court
settlement arrangement with Lehman Brothers Special Financing.

As part of the settlement arrangement, in all three transactions,
the issuers have agreed to split the early swap termination
payments between a senior payment, which follows class A interest
amounts, and junior payments, which are subordinate to the
replenishment of the reserve fund.  The senior payments will be
EUR800,000, EUR1.1 million, and EUR600,000 for EMF-NL Prime 2008-
A, EMF-NL 2008-2, and Eurosail-NL 2007-2, respectively.  The
junior payments will be EUR1.9 million, EUR2.0 million, and
EUR1.0 million for EMF-NL Prime 2008-A, EMF-NL 2008-2, and
Eurosail-NL 2007-2, respectively.

Due to a depleted reserve fund and cancelled liquidity facility,
the senior settlement payment is causing interest not to be paid
on EMF-NL Prime 2008-A's subordinate class B, C, and D notes on
the January 2017 interest payment date.  In S&P's view, the
interest shortfalls are expected to last for a period of more
than 12 months.  Consequently, in line with S&P's temporary
interest shortfall criteria, it has lowered to 'D (sf)' from
'B- (sf)', 'B- (sf)', and 'CCC (sf)' its ratings on EMF-NL Prime
2008-A's class B, C, and D notes, respectively.  In addition, as
the senior settlement amounts will use the available excess
spread, which could be used to pay down principal deficiencies in
this transaction, this could ultimately have an effect on the
class A notes.  S&P has therefore placed on CreditWatch negative
its ratings on EMF-NL Prime 2008-A's class A2 and A3 notes.

As the senior settlement payments rank senior to the
replenishment of the reserve funds in EMF-NL 2008-2 and Eurosail-
NL 2007-2, it is likely that the reserve funds will be used,
which will reduce the available credit enhancement for the rated
notes.  To allow S&P time to review the transactions in light of
these additional senior payments, it has placed on CreditWatch
negative its ratings on Eurosail-NL 2007-2's class A, M, B, C,
and D1 notes, and EMF-NL 2008-2's class A1, A2, B, C, and D
notes.

These three transactions are Dutch residential mortgage-backed
securities (RMBS) transactions backed by pools of nonconforming
Dutch residential mortgages originated by ELQ Hypotheken N.V.

RATINGS LIST

Class              Rating
          To                    From

Ratings Placed On CreditWatch Negative

Eurosail-NL 2007-2 B.V.
EUR353.675 Million Mortgage-Backed Floating-Rate Notes Including
an overissuance Of EUR3.675 Million Excess Spread-Backed Floating
Rate Notes

A         AA- (sf)/Watch Neg    AA- (sf)
M         A+ (sf)/Watch Neg     A+ (sf)
B         BB+ (sf)/Watch Neg    BB+ (sf)
C         B+ (sf)/Watch Neg     B+ (sf)
D1        B- (sf)/Watch Neg     B- (sf)

EMF-NL 2008-2 B.V.
EUR285.1 Million Mortgage-Backed Floating-Rate Notes

A1        BBB+ (sf)/Watch Neg   BBB+ (sf)
A2        BBB (sf)/Watch Neg    BBB (sf)
B         BB (sf)/Watch Neg     BB (sf)
C         B- (sf)/Watch Neg     B- (sf)
D         CCC (sf)/Watch Neg    CCC (sf)

EMF-NL Prime 2008-A B.V.
EUR200 Million Mortgage-Backed Floating-Rate Notes

A2        BB (sf)/Watch Neg     BB (sf)
A3        BB (sf)/Watch Neg     BB (sf)

Ratings Lowered

EMF-NL Prime 2008-A B.V.
EUR200 Million Mortgage-Backed Floating-Rate Notes

B         D (sf)                B- (sf)
C         D (sf)                B- (sf)
D         D (sf)                CCC (sf)


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


METTALURGICAL COMMERCIAL: Moody's Hikes LT Deposit Ratings to B1
----------------------------------------------------------------
Moody's Investors Service upgraded the long-term local- and
foreign-currency deposit ratings of Metallurgical Commercial Bank
(Metcombank) to B1 from B2. The bank's baseline credit assessment
(BCA) of b2 was affirmed, while its adjusted BCA was upgraded to
b1 from b2. The rating agency has also upgraded Metcombank's
long-term Counterparty Risk Assessment (CR Assessment) to Ba3(cr)
from B1(cr) and affirmed the short-term deposit ratings of Not-
Prime as well as the short-term CR Assessment of Not-Prime(cr).
The outlook on the bank's long-term deposit ratings is stable.

RATINGS RATIONALE

The upgrade of Metcombank's ratings reflects Moody's expectations
that within the next three months the bank will be merged into
its parent bank, Sovcombank (deposits B1 stable, BCA b1) and
cease to exist as a separate legal entity, with Sovcombank
assuming all of its liabilities. Sovcombank acquired 100% of
Metcombank's shares in October 2016. On December 15, 2016, the
two banks announced that they initiated the legal procedure that
should conclude in the merger by April 1, 2017.

To reflect the prospective merger, Moody's has aligned both banks
deposit ratings by incorporating a high probability of support
from Sovcombank into Metcombank's ratings. This results in a one-
notch uplift from Metcombank's BCA of b2.

WHAT COULD MOVE THE RATINGS DOWN / UP

If Sovcombank's ratings are upgraded or downgraded, Metcombank's
ratings could be adjusted accordingly.

Metcombank's ratings could also be downgraded if the merger does
not take place as planned, which Moody's currently regards as a
low-probability scenario, and Moody's reassesses the probability
of parental support for Metcombank or its baseline credit
assessment

PRINCIPAL METHODOLOGY

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

Headquartered in Cherepovets, Russia, Metcombank reported total
assets of RUB30.4 billion and total equity of RUB2.9 billion
under audited IFRS as of January 1, 2016. The bank's net IFRS
profit for 2015 amounted to RUB159 million.


PERESVET JSCB: Moratorium on Satisfying Creditors' Claims Imposed
-----------------------------------------------------------------
In compliance with Article 18938 of the Federal Law "On
Insolvency (Bankruptcy)" the Bank of Russia has imposed from
January 23, 2017, a three-month moratorium on satisfying claims
of creditors of the Joint-stock Commercial Bank for Charity and
Spiritual Development of Fatherland PERESVET, a joint-stock
company, according to the press service of the Central Bank of
Russia.

JSCB PERESVET participates in the deposit insurance system.  An
insured event occurred on October 21, 2016, the date of the
imposition of a moratorium on satisfying the bank creditors'
claims and also the calculation of indemnities in relation to the
bank's foreign currency liabilities.

The imposition of a moratorium on satisfying the bank creditors'
claims on January 23, 2017, is not an insured event, however,
does not repeal the liability of the state corporation Deposit
Insurance Agency (DIA) to pay indemnities to depositors occurred
due to the imposition of a moratorium by Bank of Russia Order No.
OD-3629, dated October 21, 2016.

The DIA continues paying indemnities on deposits (accounts) with
JSCB PERESVET on the grounds stipulated by Clause 2 of Part 1 of
Article 8 of the Federal Law "On Insurance of Household Deposits
with Russian Banks", i.e., the imposition of a moratorium on
satisfying bank creditors' claims by the Bank of Russia.

Information on agent banks authorized to pay indemnities is
available on the DIA's website at www.asv.org.ru.


RUSAL CAPITAL: Moody's Rates New Senior Unsecured Notes 'B1'
------------------------------------------------------------
Moody's Investors Service assigned a B1 (LGD5) rating to the
proposed senior unsecured notes to be issued by Rusal Capital
D.A.C., a wholly owned subsidiary of the world's second-largest
aluminium producer United Company RUSAL Plc (RUSAL, Ba3 stable).
The outlook is stable.

The notes will be guaranteed by RUSAL, which is the holding
company for the group; its three wholly owned large aluminium
plants, which produce around 80% of the group's aluminium; and
RTI Limited, a trading company wholly owned by RUSAL, which
generates nearly 70% of the group's revenues as it consolidates
RUSAL's international trading operations.

RUSAL's Ba3 corporate family rating (CFR) and Ba3-PD probability
of default rating (PDR) are not affected by this action.

RATINGS RATIONALE

The notes' B1 rating is one notch below RUSAL's Ba3 CFR -- which
indicates the overall group's capacity to service its debt -- and
reflects Moody's view that the unsecured notes are less strongly
positioned compared to RUSAL's loans from Sberbank ($4.5 billion
total outstanding, or nearly half of RUSAL's total debt), which
benefit not just from the cash flows of RUSAL group but more
specifically from the pledge over RUSAL's 26.88% stake in MMC
Norilsk Nickel, PJSC (Norilsk Nickel; Ba1 negative) currently
worth around $6.8 billion, which more than exceeds the
outstanding value of Sberbank's loans. The noteholders have a
pari passu claim to the cash flows of the RUSAL group but only
have a residual claim on the proceeds from the hypothetical sale
of the stake in Norilsk Nickel, ranking behind Sberbank.

Moody's expects that RUSAL will use the majority of the issuance
proceeds to repay part of the group's existing debt due in 2017
and 2018, so the new notes placement will not increase RUSAL's
leverage.

RUSAL's CFR and PDR were assigned on October 7, 2016. The
rationale and rating drivers for the ratings remain unchanged
from those described in Moody's press release of October 7, 2016.

RATIONALE FOR STABLE OUTLOOK

The stable outlook is in line with the stable outlook for RUSAL's
ratings.

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was Global Mining
Industry published in August 2014.

Headquartered in Russia, RUSAL is the world's second-largest
integrated aluminium producer, with aluminium output of 3.6
million tonnes for 2015. In the last 12 months through September
2016, the company generated revenue of $7.8 billion and Moody's-
adjusted EBITDA of $1.4 billion. RUSAL's major shareholder, EN+
Group holds 48.13% of its share capital. Other shareholders
include Onexim Holdings (17.02%), Sual Partners (15.80%),
Amokenga Holdings (8.75%; ultimately controlled by Glencore).
RUSAL is listed on the Hong Kong Stock Exchange, Moscow Exchange
and Euronext Paris, with 10.05% of its shares in free float,
including GDRs. The remaining 0.25% of shares is owned by the
company's management.


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


CREDIT SUISSE: S&P Rates Proposed High-Trigger Notes 'BB-'
----------------------------------------------------------
S&P Global Ratings said that it assigned its 'BB-' long-term
issue rating to the proposed high-trigger additional Tier 1
perpetual capital notes to be issued by Credit Suisse Group AG.
The rating is subject to S&P's review of the notes' final
documentation.

In accordance with S&P's criteria for hybrid capital instrument,
the 'BB-' issue rating reflects S&P's analysis of the proposed
instrument and its assessment of the unsupported group credit
profile (GCP) of Credit Suisse.  The issue rating is six notches
below the 'a-' unsupported GCP, owing to the deductions:

   -- One notch because the notes are contractually subordinated;
   -- Two notches reflecting the notes' discretionary coupon
      payments and regulatory Tier 1 capital status;
   -- One notch because the notes contain a contractual
      contingent capital clause requiring the mandatory
      conversion of the instrument into ordinary shares of Credit
      Suisse Group;
   -- One notch because the notes are issued by a nonoperating
      holding company (NOHC), and because S&P believes that under
      Switzerland's bank resolution framework and single point of
      entry approach, hybrids issued (or guaranteed) by a NOHC
      have a higher likelihood of regulatory intervention leading
      to nonpayment, write down, or conversion than instruments
      issued by the operating bank; and
   -- An additional notch because the mandatory conversion into
      ordinary shares under the contingent capital clause is
      linked to a 7% regulatory common equity Tier 1 (CET1)
      capital ratio of the consolidated Credit Suisse Group and
      could be triggered while Credit Suisse Group is a going
      concern.  Additionally, we project that CET1 ratio of the
      consolidated Credit Suisse Group will settle sustainably by
      301-700 basis points above this trigger level, that is,
      between 10% and 14%.

S&P's reading of the terms and conditions is that the referenced
capital ratio is Credit Suisse's consolidated Bank for
International Settlements CET1 ratio, considering phase-in
requirements.  As of Sept. 30, 2016, Credit Suisse Group reported
a ratio of 14.1%, which is marginally above our 14% threshold.
However, S&P estimates that the ratio will likely be below 14%
over the next 12-24 months.  S&P believes this was already the
case at year-end 2016, given the announced pre-tax charge of
about $2.0 billion in 2016 fourth-quarter financials to settle
with the U.S. Department of Justice over its issuance and
underwriting of mortgage-backed securities prior to the financial
crisis. Subsequent to S&P's bulletin "Credit Suisse Ratings
Unaffected By Announced Settlement With U.S. Department of
Justice" published on Dec. 23, 2016 on RatingsDirect, S&P has
learned that the announced charge includes both the monetary
penalty and Credit Suisse's best estimate of the cost of the
consumer relief.

Furthermore, during the transition period of Basel III, certain
deduction amounts from regulatory capital will be phased in by
incremental steps of 20% per year by 2019.  The full negative
effect of the phase-in deductions is reflected in Credit Suisse's
"look-through" CET1 ratio of 12% on Sept. 30, 2016.  In addition,
further Basel III reforms are likely to lead to higher exposure
risk-weights also weighing on Credit Suisse's regulatory capital
ratios over time.  In this context, Swiss "Too Big To Fail"
capital requirements for Credit Suisse suggest that its CET1
ratio post regulatory recalibration might settle at about 11% by
Jan. 1, 2020.

Once the securities have been issued and confirmed as part of the
issuer's Tier 1 capital base, S&P expects to assign intermediate
equity content to them under its criteria.  This reflects S&P's
understanding that the notes are perpetual, regulatory Tier 1
capital instruments that have no step-up.  The payment of coupons
is discretionary and the notes can additionally absorb losses on
a going-concern basis through the equity conversion feature.
However, S&P regards subordinated hybrid capital instruments as
weaker forms of capital, which already represented a high 23% of
Credit Suisse's total adjusted capital on Sept. 30, 2016.  This
limits the positive impact of additional hybrid issuance on S&P's
capital assessment.


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


B&M EUROPEAN: S&P Assigns 'BB-' Long-Term CCR, Outlook Stable
-------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' long-term corporate credit
rating to U.K.-based discount retailer B&M European Value Retail
S.A.  The outlook is stable.

At the same time, S&P assigned its 'BB-' issue rating to B&M's
proposed GBP250 million senior secured notes issuance and
GBP150 million revolving credit facility (RCF).  The recovery
rating on both the notes and the RCF is '3', reflecting S&P's
expectation of meaningful (50%-70%; higher half of the range)
recovery in the event of default.

B&M is the largest discount general merchandise retailer by
revenue in the U.K., where it currently operates more than 500
stores and generates nearly 95% of its revenues.  In recent
years, the group has expanded internationally, and it now
operates more than 70 stores under the Jawoll brand in Germany,
where it generated nearly 5% of its revenue in the financial year
ending March 26, 2016.

S&P's assessment of B&M's business risk profile incorporates
S&P's view of the company's track record of robust revenue growth
over the past few years, supported by the rollout of new stores,
including expansion outside the North of England, and positive
like-for-like growth.  B&M commands an established market
position as the U.K.'s largest discount general merchandise
retailer by revenue.  S&P views B&M's profitability as stronger
than peers and its high-margin own-label products, which comprise
the bulk of the non-grocery product mix, support S&P's assessment
of its business risk profile.

That said, the business risk profile is constrained by tough
price competition in both of its markets, where B&M competes with
established players of greater scale, such as Tesco, Asda, B&Q,
and Argos, as well as a growing number of discount grocery and
general merchandise retailers.  This caps any meaningful gross
profit margin expansion. Low brand awareness and a lack of
geographic diversification, combined with execution risks linked
to the group's ambitious growth strategy, could result in a less
sustainable business model than peers.

In line with other general merchandise retailers in the U.K., S&P
anticipates that B&M will face pressure on its gross margins
arising from sterling depreciation.  S&P believes this risk is
somewhat mitigated by the group's direct sourcing of non-grocery
products and the limited impact of dollar-denominated costs,
which amount to only 30% of the cost of goods sold.

S&P assess B&M's financial risk profile as aggressive, reflecting
S&P's view that it will maintain its strong earnings growth and
cash flow generation during 2017, supported by a strong pipeline
of new stores.  B&M has demonstrated a trend of buoyant revenue
growth in recent years, with sales growing by over 20% year-on-
year for the nine months ending December 2016, underpinned by 51
new store openings and slightly positive like-for-like sales
growth.  S&P therefore anticipates that it will post an S&P
Global Ratings-adjusted funds from operations (FFO) to debt ratio
of about 17%-20% and an adjusted debt-to-EBITDA ratio comfortably
at about 4x over the next two financial years.  Furthermore, S&P
anticipates that B&M's significant operating lease commitments
will constrain its EBITDAR coverage ratio (which measures an
issuer's lease-related obligations by capturing actual rents
instead of minimum contractual rents) to 2.2x-2.4x over the next
two financial years.

Given B&M's operating lease structure, S&P considers that its
lease-adjusted ratios (in particular, adjusted debt to EBITDA)
are best complemented by other ratios, such as the unadjusted
EBITDAR (EBITDA including rent costs) to the interest plus rent
coverage ratio (EBITDAR coverage, a ratio that measures an
issuer's lease-related obligations by capturing actual rents
instead of minimum contractual rents).

In S&P's view, B&M's financial policy -- including leverage
tolerance, appetite for acquisitions, capital expenditure
(capex), and dividends -- will remain neutral to the rating over
the medium term.  Strong free operating cash flow (FOCF)
generation should allow B&M to continue to fund additional store
openings and maintain high levels of shareholder remuneration in
the form of dividends.  At the same time, S&P considers that the
policy of returning surplus cash to shareholders in line with a
target net reported leverage of 2.25x, will prevent a material
and sustainable improvement in credit metrics in the future.

S&P's base-case scenario assumes:

   -- Moderate U.K. real GDP growth, forecast to be 1.8% in 2016
      and 1.0% in 2017, with consumer price inflation of 0.7% in
      2016 and 2.0% in 2017, supported by exchange rate
      pressures, some of which will be passed on to consumers and
      suppliers.

   -- Sound revenue growth of more than 15% in FY2017 and 10% in
      FY2018, well in excess of real GDP growth in the U.K.,
      supported by new store openings and low levels of positive
      like-for-like sales growth.

   -- Reported EBITDA margin of about 9.0%-9.5% in FY2017,
      falling to 8.0%-8.5% in FY2018 as currency movements exert
      moderate downward pressure on gross margins.  This pressure
      will be somewhat offset by the growing proportion of goods
      sourced directly, combined with increasing pricing power.

   -- Capex of about GBP50 million per year in FY2017 and FY2018.

   -- Continued shareholder returns in the form of regular and
      special dividends, reflecting a financial policy that,
      although generally prudent, is focused on returning excess
      cash to shareholders.

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

   -- Adjusted FFO to debt of about 17%-20% in FY2017 and FY2018.
   -- Adjusted debt to EBITDA of 3.5x-4.0x in FY2017 and FY2018.
   -- EBITDAR coverage of 2.2x-2.4x in FY2017 and FY2018.

The stable outlook reflects S&P's expectation that B&M will
continue to successfully implement its store expansion strategy,
resulting in sales and profit growth.  This profit growth should
support an adjusted FFO-to-debt ratio of least 17%-20% over the
next 12 months.  At the same time, S&P anticipates that B&M's
EBITDAR to interest and rents coverage ratio will remain above
2.2x, despite its expanding store portfolio and the increased
amount of gross debt after the transaction.  S&P also expects
that any material improvement in credit metrics will likely be
temporary and constrained by the policy of distributing excess
cash to shareholders, subject to the dividend payout guidance.

S&P could downgrade B&M if the group was unable to execute its
growth strategy or experienced unexpected operating setbacks,
loss of market share, or considerable revenue or profit decline.
S&P could also lower the rating if the company's financial policy
becomes more aggressive, especially with regards to shareholder
remuneration.  In particular, S&P could lower the ratings if
B&M's FFO-to-debt ratio were to fall toward 12% while EBITDAR
ratio were to weaken to 2.2x or lower, due to operating
shortfalls of earnings or cash flow.

Although S&P expects B&M's credit measures to improve somewhat
over the coming year, S&P do not expect to take a positive rating
action on the company, mainly due to its view of the tough
trading environment, which will put pressure on profitability.
However, S&P could raise the rating if B&M were to materially and
sustainably improve its credit measures, such that FFO to debt
and EBITDAR coverage ratios were comfortably above 20% and 2.5x,
respectively.  An update would also depend on sustainably
positive discretionary cash flow and a commitment to a more
conservative financial policy that S&P considers to be supportive
of these improved ratios.


GOWER HOTEL: Wedding Venue Closure Devastates Bride-to-be
---------------------------------------------------------
BBC News reports that a bride-to-be said she was "gutted" after
finding out her venue had closed, a few months before her wedding
day.

BBC News says Jazmine Parry, 30, from Swansea, was due to marry
Kurt Tracey, 31, at The Gower Hotel in Bishopston on April 27.
However, the hotel ceased trading on December 31, 2016, with 23
people being made redundant, meaning 28 couples who booked
weddings in 2017 and 2018 now have to make new plans.

"We are just devastated by it to be honest," the report quotes
Miss Parry as saying.

BBC News relates that insolvency specialist Begbies Traynor told
the Jason Mohammad programme: "Having lost some key members of
staff, and themselves suffering ill-health, the owners are now no
longer able to run or financially support the business.

"The owners of the family-run business are deeply sorry and
extend their sincerest apologies to those affected customers."

People who had booked an event or to stay at the hotel in January
are being contacted by post, the report says.

According to the report, consumer law expert Prof Margaret
Griffiths urged couples involved to go to a creditors' meeting on
January 25 as it will allow people to find out what is happening.

"Unfortunately, of course, people like Jazmine and the other
couples involved will be what's termed unsecured creditors, so
they will actually be at the end of the line when it comes to
paying out for the insolvency of the firm," BBC News quotes
Ms. Griffiths as saying.


NEW LOOK: Credit Quality Ahead of Peers, Moody's Says
-----------------------------------------------------
Lower leverage, stronger interest cover, greater profit growth
potential and the flexibility to boost free cash flow combine to
place UK retailer New Look Retail Group Limited's (New Look, B2
stable) credit quality ahead of peers House of Fraser (UK &
Ireland) Limited (HoF, B3 negative) and Missouri TopCo Limited
(Matalan, Caa1 stable) in the next 12 to 18 months, says Moody's
Investors Service in a new report.

Moody's report is titled "House of Fraser, Matalan and New Look:
Peer Comparison - New Look Has Most Scope and Time For Profit
Improvement".

"Tougher online competition and shifting consumer spending will
continue to pressure UK clothing retailers into 2017, but New
Look, which has the lowest leverage and strongest interest cover
of its peers, still has the best chance to grow profitability in
the year ahead as it looks to open more menswear stores, roll out
its widened beauty and accessory ranges across more stores, and
expand in China. It also has the most flexibility to scale back
capex spending to boost free cash flow," says David Beadle, a
Moody's Vice President -- Senior Credit Officer and author of the
report.

New Look still has a lower Moody's adjusted debt/EBITDA leverage
ratio than lower rated HoF and Matalan. It also has no debt
maturities until 2021 and no term debt maturing until 2022,
giving it much longer to reduce leverage than Matalan and HoF,
which have debt maturities in June and July 2019.

New Look's potential for profit recovery in 2017 is greater than
HoF and Matalan thanks in part to significant ongoing store roll-
outs in China, continued openings of stand-alone menswear stores
and expansion of its beauty and accessory ranges. HoF has the
potential to return to near its historic profit levels in the
next 12-18 months, but Matalan's profitability will remain below
2013-15 levels.

New Look's smaller stores with commensurately lower direct
operating costs and shorter leases give it an advantage because
it can adapt the shape and scale of its bricks and mortar store
portfolio more easily than HoF or Matalan. New Look has an
average unexpired lease term of around five years compared with
about eight years for Matalan and more than 30 for HoF.


PMG LEISURE: Goes Into Administration; Morecambe FC Unaffected
--------------------------------------------------------------
Lancashire Evening Post reports that PMG Leisure Limited, a
company which operates the all-weather community pitches at
Morecambe Football Club, has gone into administration but the
business will continue to operate.

According to the report, property specialists Simon Thomas and
Arron Kendal of London-based insolvency firm Moorfields have been
appointed joint administrators over PMG Leisure Limited.

Lancashire Evening Post relates that Moorfields said they will
"continue to trade the business as normal while seeking to
achieve a longer term strategy for the company's assets, working
closely with the football club".

"The administrators will continue to operate the facilities as
normal and will maintain the employment of the company's 11 staff
until a solution is found. In the interim, Morecambe FC will be
continuing to use the company's facilities and should remain
unaffected by the administration process," the report quotes
Mr. Thomas as saying.

The pitches are hired out to the public and used by Morecambe FC
for training their youth development teams.  PMG Leisure also has
a building which houses the football club's community support
personnel and match day security operations.

PMG Leisure Ltd, a private limited company, was set up in July
2010. The company runs the 3G football pitches behind the Globe
Arena stadium, home of Morecambe FC. It has 11 staff.

The company is entirely separate to Morecambe Football Club
Limited.


PREMIER FOODS: Moody's Changes Outlook to Neg.; Affirms B2 CFR
--------------------------------------------------------------
Moody's Investors Service changed to negative from stable the
outlook of UK-based food manufacturer Premier Foods plc (Premier
Foods) and Premier Foods Finance plc. At the same time, Moody's
affirmed the B2 corporate family rating (CFR) and B2-PD
probability of default rating (PDR) of Premier Foods, as well as
the B2 ratings on the GBP500 million senior secured notes at
Premier Foods Finance plc.

"The change in outlook to negative reflects Moody's expectations
of a significant drop in Premier Food's profits when it announces
its 2016-17 end-of-year results, on the back of rising input
costs and higher promotional investments. In addition, ongoing
challenges in the UK food retail market, higher input cost and
the weak pound could push the company's operating performance
down further into 2017-18," says Eric Kang, a Moody's analyst.

RATINGS RATIONALE

The outlook change to negative is driven by Premier Foods' weaker
operating performance relative to Moody's expectations as well as
the elevated risk of further decline in profitability. While the
rating agency previously expected the company to sustain the
improvements achieved in the fiscal year 2015-16, the company now
expects the full-year trading profit for the current fiscal year
2016-17 to decline by 10% due to the double impact of rising
input costs, and higher promotional investments following
retailers' change in promotional strategy which led to a switch
from multi-buy promotions to more costly single-unit promotions.

Moody's also cautions that operating performance could
deteriorate further over the next 12 to 18 months given its
expectation of a continued challenging food retail market in the
UK and higher input costs including the impact of the weaker
British pound.

"We view the risk of further deterioration in Premier Foods'
credit metrics as high given that it has not yet fully recovered
rising input costs while the full impact of the weaker British
pound has not yet materialised." adds Mr Kang.

Premier Foods has announced a series of mitigating measures but
these may not be sufficient to fully offset the decline in
profitability. It intends to mitigate higher input costs through
a combination of cost savings initiatives, change in promotional
strategy and pack formats, and lastly, price increases. It is
about to a launch three-year cost reduction and efficiency
programme aiming at delivering GBP10 million annual savings from
fiscal year 2017-18 with equivalent incremental savings the
following year. But this will likely require higher restructuring
costs, which will weigh on cash flow generation over at least the
next 12 to 18 months, and involve some degree of execution risks.

Moody's therefore expects the company's adjusted debt-to-EBITDA
to increase to around 7.5x at fiscal year-end 2016-17 from 6.6x
at fiscal year-end 2015-16 (both based on the gross pension
deficit of GBP420 million as of fiscal year-end 2015-16 for
comparability purposes). However, assuming a pension deficit of
GBP590 million in line with the deficit as of 1 October 2016,
Moody's estimates the leverage to stand at around 8.8x at fiscal
year-end 2016-17 and potentially increase towards 9.5x by fiscal
year-end 2017-18.

It is also worth noting that Moody's typically assesses pension
deficit liabilities over the medium term rather than at a single
point in time, and place greater emphasis on the impact of the
obligations on cash flow generation. Excluding the impact of the
pension deficit adjustment, the Moody's-adjusted leverage was at
4.1x for the last 12 months ending 1 October 2016.

More positively, the company's liquidity profile remains adequate
despite Moody's expectations of negligible to slightly negative
cash flow generation in the next 12 to 18 months given the
resumption of pension deficit contributions and the likely
increase in restructuring costs. As of 1 October 2016, the
company had cash balance of GBP35 million and access to a GBP272
million revolving credit facility due March 2019 (not rated) of
which GBP89 million was drawn. The company currently has
sufficient headroom on the financial maintenance covenants
attached to the revolving credit facility but Moody's expects the
headroom to tighten due to further step-downs in the target
covenant ratios. That being said, the current ratings assume that
the company will be able to obtain a waiver of any breach and/or
reset covenants if necessary.

RATIONALE FOR NEGATIVE OUTLOOK

The negative outlook reflects the elevated risk of further
decline in profitability over the next 12 to 18 months, which
could lead to credit metrics no longer commensurate with a B2
CFR.

WHAT COULD CHANGE THE RATING UP/DOWN

An upgrade is unlikely in the near term given the negative rating
outlook but Moody's will consider stabilizing the outlook if the
company stabilises the decline in profitability, and maintains
credit metrics within a range commensurate with a B2 CFR as
described below.

There could be positive pressure over time if debt/EBITDA ratio
falls below 6.5x (or below 3.5x excluding the pension deficit) on
a sustained basis and the company maintains an EBIT margin above
10%, whilst generating positive free cash flow (after pension
contributions) and keeping a solid liquidity profile.

Conversely, Moody's will consider downgrading the ratings if
gross debt/EBITDA rises towards 8.0x (or 4.5x excluding the
pension deficit), if EBIT margin falls materially below 10%, or
if the liquidity profile deteriorates including negative free
cash flow (after pension contributions). As discussed above,
Moody's assessment of the leverage takes into consideration the
volatility in the adjustment for the company's significant
pension deficit.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global
Packaged Goods published in June 2013.

Headquartered in St Albans, UK and quoted on the London Stock
Exchange, Premier Foods plc is a branded ambient foods producer
to the UK retail market. For the fiscal year ended 2 April 2016,
Premier Foods reported revenues of approximately GBP772 million.


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


* DBRS Puts 27 European Banking Groups' Sub. Debt Under Review
--------------------------------------------------------------
DBRS Ratings Limited and DBRS, Inc. (collectively, DBRS) on
January 13 placed Under Review with Negative Implications the
ratings of certain subordinated debt of 27 European banking
groups. The rating action affects only the higher rated
subordinated debt in European banks' capital structure, and
reflects the increasing likelihood that holders of this debt are
now likely to bear losses at the same time as lower rated
subordinated debt of banks that come under financial stress.
Rating downgrades are expected to be limited to one notch and the
review period is likely to take no longer than 90 days.

In total 29 banking groups are affected, as the ratings of 2
banks are already under review for separate reasons.

DBRS currently rates existing dated subordinated debt and
cumulative junior subordinated debt of European banks one notch
below the Intrinsic Assessment (IA), while non-cumulative junior
subordinated debt is rated two notches below the IA. However,
given the increasing likelihood that all subordinated debt will
be used to absorb losses alongside equity under the European
Union's Bank Recovery and Resolution Directive (BRRD), DBRS has
placed Under Review with Negative Implications the subordinated
debt that is currently rated only 1 notch below the IA. One
potential outcome of the review is that these instruments would
be downgraded to the same level as existing non-cumulative junior
debt (i.e. 2 notches below the IA).

The rating action is in line with the existing DBRS Criteria:
Rating Bank Capital Securities -- Subordinated, Hybrid, Preferred
& Contingent Capital Securities (February 2016).

DBRS has also included Swiss banks in its review, as a similar
direction is evident in the evolution of the treatment of
subordinated debt holders in Switzerland. This review is
restricted to European banks. DBRS does not currently see similar
rating pressure on rated subordinated debt in the USA, Canada or
Asia-Pacific, given the different regulatory regimes in these
countries.

The subordinated debt ratings of Intesa Sanpaolo SpA and Caixa
Geral de Depositos S.A., which are already Under Review with
Negative Implications for separate reasons, remain under review
as a result of today's rating action.

DBRS has not made any further changes to its existing senior debt
and deposit ratings of European banks at this time. As outlined
in DBRS's July 2016 commentary, Developments in European Bank
Resolution Frameworks and their Impact on Bank Creditors, DBRS
continues to avoid overly precise assumptions about the possible
nature of a future resolution, as under BRRD national resolution
authorities still have significant discretion to adjust the bail-
in process.

RATING DRIVERS
The ratings are Under Review with Negative Implications as
discussed above.

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

                    https://is.gd/Z9qNrf



                            *********

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
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Information contained herein is obtained from sources believed to
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                 * * * End of Transmission * * *