TCREUR_Public/170301.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, March 1, 2017, Vol. 18, No. 043


                            Headlines


A Z E R B A I J A N

AZERBAIJAN: Fitch Affirms BB+ LT Issuer Default Ratings


B E L G I U M

NYRSTAR NV: Moody's Puts Caa1 Rating Under Review For Upgrade


C R O A T I A

AGROKOR DD: Moody's Revises Outlook to Neg & Affirms B3 CFR


F R A N C E

REXEL SA: Moody's Assigns Ba3 Rating to EUR300MM Sr. Unsec. Notes


G R E E C E

GREECE: Fitch Affirms Long-Term Issuer Default Ratings at 'CCC'


I R E L A N D

DECO 7: Fitch Affirms Dsf Rating on EUR32.9MM Class H Notes
DECO 10: Fitch Affirms Dsf Rating on EUR18.7MM Class D Notes


L U X E M B O U R G

ARCELORMITTAL: Moody's Raises Corporate Family Rating to Ba1


N E T H E R L A N D S

BABSON EURO 2014-1: Moody's Confirms B2 Rating on Cl. F Debt


R U S S I A

FAR EASTERN SHIPPING: Kapital Asset Files Bankruptcy Claim
SBERBANK: To Benefit From Growing Housing Loans, Moody's Says
TATFONDBANK: TAIF Group Eyes Participation in Bailout


T U R K E Y

ISTANBUL: Fitch Affirms BB+ Long-Term IDR, Outlook Stable


U K R A I N E

PJSC FORTUNA-BANK: Deposit Guarantee Fund Starts Liquidation


U N I T E D   K I N G D O M

BHS GROUP: Philip Green Pays GBP363MM to Insolvent Pension Fund
FRANK DALE: To Go Into Liquidation, Failed to Keep Up w/Orders
LASER ABS 2017: Moody's Assigns (P)Ba3 Rating to Cl. D Notes
LASER ABS 2017: Fitch Assigns 'BB+(EXP)' Rating to Class D Notes
MARRACHE & CO: Suits Mulled Against Banks Handling Accounts

SEADRILL LTD: May Miss Debt Restructuring Deadline
THOMAS COOK: Fitch Revises Outlook to Pos. & Affirms B IDR


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A Z E R B A I J A N
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AZERBAIJAN: Fitch Affirms BB+ LT Issuer Default Ratings
-------------------------------------------------------
Fitch Ratings has affirmed Azerbaijan's Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDR) at 'BB+' with Negative
Outlooks. The issue rating on Azerbaijan's senior unsecured
foreign-currency bond has also been affirmed at 'BB+'. The Country
Ceiling has been affirmed at 'BB+'. The Short-Term Foreign- and
Local-Currency IDRs have been affirmed at 'B'.

KEY RATING DRIVERS

Azerbaijan's 'BB+' ratings balance a strong external balance sheet
and low government debt, stemming from accumulated surpluses in
times of high oil revenues, with a heavy dependence on
hydrocarbons, an underdeveloped policy framework, low governance
indicators and a weak banking sector.

The Negative Outlook reflects continued risks and uncertainty
around the macroeconomic and financial sector adjustment currently
under way.

Azerbaijan's 'BB+' IDRs reflect the following key rating drivers:

Public finances are stronger than 'BB' rated peers and surprised
on the positive side in 2016. Despite a large fall in oil revenues
in 2016, the consolidated general government deficit was contained
at 1.2% of GDP, below the 'BB' median of 3.3% and below Fitch
previous forecast of 7.3%, mostly due to a 41% capital expenditure
cut. Fitch expects a one-off widening in the budget deficit to
8.4% of GDP in 2017, due to planned support through the budget
from sovereign wealth fund Sofaz to the banking sector, worth
around 12% of GDP. Beyond 2017, the fiscal balance is expected to
improve as oil prices recover; the envisaged adoption of a fiscal
rule could reduce the pro-cyclicality of public finances over the
medium term.

Deficits are largely financed by ample assets accumulated in
Sofaz. Despite a decline in the USD value of assets in 2015-2016,
they accounted for a comfortable 92% of GDP at end-2016
(USD33.1bn), were largely held in safe, liquid assets, and were
reported much more transparently than in most higher-rated oil
producers. Government debt therefore remains contained, at 22.5%
of GDP at end-2016, much lower than the 'BB' median of 51.1%.
Although public debt has an unfavourable currency composition
(88.2% was denominated in foreign currency at end-2016), this is
mitigated by the USD denomination of most Sofaz assets.

The plunge in oil prices has affected the current account balance,
which recorded an estimated deficit of 2.9% of GDP in 2016, in
line with the 'BB' median. Despite two manat devaluations in 2015,
non-oil exports have not picked up and imports have remained
resilient. Fitch, however, only expects the current account to
return to surplus in 2018 as oil prices pick up, and does not
forecast any significant reduction in commodity dependence given
the expected rise in gas exports over the medium term.

FX reserves fell to a historical low of USD3.9bn at end-2016
(2014: USD13.8bn), just covering three months of current account
payments. In a move to preserve FX reserves and Sofaz assets, the
central bank adopted a managed float regime in 2016, which it
intends to convert into a free float in 2017. Ongoing volatility
of the manat undermines confidence in the currency. Despite the
decline in FX reserves and Sofaz assets over the past two years,
the external balance sheet remains much stronger than the 'BB'
median, with the sovereign and non-bank private sector net
external creditor position above 100% of GDP.

The banking sector has become extremely vulnerable following the
devaluations and slowdown in the economy, with a Fitch Banking
System Indicator of 'ccc'. The newly created bank regulator FMSA
closed 10 banks in 2016 and continued to restructure the largest
bank IBA (holding 30% of total assets), which Fitch deems as
having failed in 2016. However, with NPLs high at 21% of gross
loans at end-2016 (and likely under-reported in Fitch's opinion),
and a sector-wide capital adequacy ratio of 7.6%, the sector is
likely to need further support in 2017. The bulk of it will be
provided by the budgeted Sofaz transfer but the state will provide
additional support to IBA during the year, which will add to the
21% of GDP guarantees already extended over the past two years.

Macroeconomic performance in 2016 was hard hit by the fall in oil
prices, the mishandled devaluations and problems in the banking
sector. Inflation remained much higher than the 'BB' median at
12.6% on average in 2016, despite a restrictive monetary policy,
as the high dollarisation rate (80% at end-2016) and lack of
confidence in the currency impair monetary policy transmission.
Real GDP contracted 3.8% in 2016, the third worst performance of
all Fitch-rated sovereigns, primarily reflecting a 27.6%
contraction in construction as public investment was cut. Oil
production also declined by an estimated 1% due to the natural
ageing of oil fields. Volatility of GDP, inflation and exchange
rate is therefore well above 'BB' medians.

Economic diversification is progressing very slowly despite some
improvement in doing business indicators but the expected rise in
oil prices and the start of gas production at the Shah Deniz 2
development around 2019 could lift growth prospects over the
medium term. Policy credibility could also improve growth
prospects if the ongoing reforms of the exchange rate and monetary
policy frameworks, and the restructuring of the banking sector
bear fruit. Fitch therefore expects a gradual improvement in
growth prospects over the next two years.

Structural features are weak relative to peers, with GDP per
capita falling below the 'BB' median in 2016 to USD3,600.
Political risk also remains significant, as illustrated by lower
governance indicators than 'BB' peers, a strengthening of power
centralisation after the September 2016 referendum, and small
social protests such as those in early 2016. Although the conflict
with Armenia over the Nagorno-Karabakh region has stabilised since
the flare-up in tensions in April 2016, the situation remains
volatile, the area is heavily militarised and negotiations remain
stalled.

SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO)
Fitch's proprietary SRM assigns Azerbaijan a score equivalent to a
rating of 'B+' on the Long-Term Foreign Currency IDR scale.

In accordance with its rating criteria, Fitch's sovereign rating
committee decided not to adopt the score indicated by the SRM as
the starting point for its analysis because the SRM output has
migrated from 'BB-' to 'B+', but in Fitch views this is
potentially a temporary deterioration.

Assuming an SRM output of 'BB-', Fitch's sovereign rating
committee adjusted the output to arrive at the final Long-Term
Foreign Currency IDR by applying its QO, relative to rated peers,
as follows:

- External finances: +2 notches, to reflect the size of Sofaz
assets which underpin Azerbaijan's exceptionally strong foreign
currency liquidity position and the very large net external
creditor position of the country.

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

RATING SENSITIVITIES

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

- Policy initiatives or responses that further undermine
   macroeconomic stability;

- An erosion of the external asset position resulting from a
   failure to sustainably adjust budget execution to the lower
   oil price environment, or from a materialisation of large
   contingent liabilities;

- A further sustained and prolonged fall in hydrocarbon prices.

The Outlook is Negative. Consequently, Fitch does not anticipate
developments with a high likelihood of triggering an upgrade.
However, the main factors that could, individually or
collectively, trigger a revision of the Outlook to Stable are:

- Greater confidence in macroeconomic and financial policy
   management;

- Higher hydrocarbon prices that help preserve fiscal and
   external buffers;

- Improvement in governance and the business environment, and
   progress in economic diversification underpinning growth
   prospects.

KEY ASSUMPTIONS

Fitch currently assumes that Brent crude oil will average USD45/b
in 2017 and USD55/b in 2018.

Fitch assumes that Azerbaijan will continue to experience broad
social and political stability and that there will be no prolonged
escalation in the conflict with Armenia over Nagorno-Karabakh to a
level that would affect economic and financial stability.



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B E L G I U M
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NYRSTAR NV: Moody's Puts Caa1 Rating Under Review For Upgrade
-------------------------------------------------------------
Moody's Investors Service has placed the Caa1 corporate family
rating (CFR) and Caa1-PD probability of default rating (PDR) of
Nyrstar NV on review for upgrade. Concurrently, the rating agency
has placed under review for upgrade the existing EUR350 million
senior unsecured guaranteed notes due 2019 issued by Nyrstar
Netherlands (Holdings) B.V., a subsidiary of Nyrstar, and has
assigned a provisional (P)B3 rating on the new proposed EUR350m
senior unsecured guaranteed notes due 2024 to be issued by Nyrstar
Netherlands (Holdings) B.V. Pending the review for upgrade on the
ratings, also the outlook is under review.

The rating on the new notes is provisional, as it is based on the
review of draft documentation and on a targeted capital structure
at closing. Upon completion of the issuance of the new notes and
confirmation of the use of proceeds in line with management public
guidance, and after conclusive review of the final documentation,
Moody's will conclude the review for upgrade on Nyrstar's ratings
and assign a definitive rating to the new notes. Definitive
ratings may differ from provisional ratings.

If the transaction were to complete in line with management public
guidance, Moody's expects that an upgrade of Nyrstar's ratings
would be by one notch to B3.

RATINGS RATIONALE

The initiation of the review for upgrade on Nyrstar's ratings
reflects Moody's favourable assessment of the actions taken by the
company to proactively address its liquidity needs over the next
12 to 18 months. Nyrstar plans to use the proceeds of the new
EUR350m notes due 2024 to fund a voluntary tender offer on the
EUR120m convertible notes due 2018 and to repay, but not cancel,
drawings under the existing EUR400m revolving structured commodity
trade finance facility due 2019. Pro-forma for the contemplated
transaction, the liquidity position of the company would become
adequate to address the company's negative free cash flows of c.
EUR160 million projected by the rating agency for 2017, as well as
the refinancing risk in September 2018 related to the convertible
notes. The increased liquidity headroom would better accommodate
the requirements for the next operational milestones of the Port
Pirie redevelopment project. Moody's assessment of the liquidity
position of Nyrstar also assumes that the company will be able to
(i) delay the amotisation of the Port Pirie perpetual notes, if
needed, and (ii) extend or roll-over the US$250 million Trafigura
(unrated) revolving facility when it matures in December 2017. The
rating agency expects that Trafigura, the main shareholder of
Nyrstar with a 24.6% equity stake, will continue to be supportive.

An improved liquidity position would contribute to mitigate the
residual Port Pirie project execution risk, pending the
implementation over the next three quarters of some changes
identified by the company. These changes will require c. AUD100
million (EUR70m equivalent) additional capex to be spent this
year. A better liquidity would also provide the company more time
to finalize the disposal process for its mining business. At
current zinc prices, the residual mines still under Nyrstar's
control have become profitable at the EBITDA level and have
materially reduced their aggregate cash burn.

The initiation of the review for upgrade takes also into account
the favourable pricing environment for zinc, the key commodity for
Nyrstar. Moody's believes that the zinc market is characterized by
solid fundamentals, which should persist over the next 12 to 18
months and continue to support the performance of the company and
its deleveraging efforts. Under its conservative zinc prices
assumptions of US$2,205/tonne, Moody's expects that the company
will start to gradually reduce its adjusted gross debt/EBITDA
ratio towards 6x by the end of 2017, from over 7x at the end of
2016, and further deleveraging to c. 4x would be possible in 2018,
when the Port Pirie project should start delivering an initial
EBITDA uplift of EUR40 million.

STRUCTURAL CONSIDERATIONS

The (P)B3 rating assigned to the new EUR350 million senior
unsecured guaranteed notes due 2024 is underpinned by Moody's
expectation that the issuance is completed in due course and that
the rating agency will then positively conclude its review for
possible upgrade of the existing ratings. This includes the
ratings of the EUR350m notes due 2019, which would rank pari-passu
with the new notes in the pro-forma capital structure at closing.
Both series of notes will rank behind the senior secured EUR400
million revolving borrowing base facility but ahead of other
senior unsecured obligations of the group. Such obligations were
raised at the level of various holding companies and are not
benefitting from the guarantees of the operating subsidiaries,
unlike the existing and new notes, which continue to benefit from
the senior unsecured guarantees by the main operating
subsidiaries. As of December 31, 2016, the issuer and the
guarantors for the notes represented 83.9% of Nyrstar's total
underlying EBITDA and 73.6% of its assets.

What could change the rating UP

A rating upgrade would be considered if the company were able to
complete the issuance of the new EUR350m notes as currently
envisaged. The completion of the transaction would improve the
liquidity position of Nyrstar to adequate.

What could change the rating DOWN

A downgrade, albeit currently considered as unlikely, would be
considered if the company does not proactively address its
liquidity needs. Weaker credit metrics than currently anticipated
under Moody's assumptions, and materially reduced headroom under
the financial maintenance covenants will also exert negative
rating pressure.

The principal methodology used in these ratings was Global Mining
Industry published in August 2014.

Listed in Belgium and headquartered in Switzerland, Nyrstar NV is
a medium-sized integrated smelting and mining company, owning nine
mines (out of which five are currently operating), six smelters
and a fumer. Smelting facilities are located in Northern Europe,
the US and Australia. During 2016 the company is completing its
AUD660 million (approximately EUR440 million) Port Pirie smelter
redevelopment project in Australia (the 'Port Pirie project'),
which would enable a major expansion of its metal processing
business, once fully ramped-up by end of 2019. The company is
currently seeking to exit the mining business and transform itself
into a metal processing only business.

Nyrstar is listed on Euronext Brussels exchange with a market
capitalization of c. EUR0.8 billion and reported 2016 revenues of
EUR2,763 million. The single main shareholder of Nyrstar is
Trafigura (unrated), with a 24.6% equity stake.



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C R O A T I A
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AGROKOR DD: Moody's Revises Outlook to Neg & Affirms B3 CFR
-----------------------------------------------------------
Moody's Investors Service changed to negative from stable the
outlook on Croatia-based food retailer and manufacturer Agrokor
D.D.'s B3 corporate family rating (CFR), B3-PD probability of
default rating (PDR) and B3 senior unsecured ratings assigned to
the 2019 and 2020 notes. Concurrently, Moody's has affirmed all
these ratings.

"Our decision to change Agrokor's outlook to negative reflects the
uncertainties weighing on its credit profile, which is constrained
by a more limited access to credit markets and a need to stabilize
operating performance and leverage at a time when the company's
shareholder Adria is due to address the repayment of its PIK
toggle loans" says Vincent Gusdorf, a Vice
President -- Senior Analyst at Moody's.

RATINGS RATIONALE

The action reflects Moody's current view that there are an
increasing number of risks and uncertainties weighing on Agrokor's
credit quality as evidenced by a deterioration in its access to
credit markets as well as high exposure to a small number of
banks, with Russian financial institutions Sberbank (Ba2/Ba1
stable, ba1) and Bank VTB, JSC (Ba2/Ba1 stable, b1) providing 52%
of the restricted group debt and 87% of its bank debt as of
September 2016.

This comes at a time when Agrokor is attempting to stabilize its
operating performance and leverage amidst fierce competition in
its core retail markets.

Furthermore, the impending deadline to refinance the payment in
kind (PIK) toggle loans sitting above the restricted group, at
Adria Group Holding BV, also weighs on Agrokor's credit quality.
Failing to refinance the PIKs could potentially lead to an
acceleration of the restricted group's debt either on 8 March
2018, because a clause included in some bank documentations allows
lenders to ask for a repayment of their loans, or on 8 June 2018
when the PIKs become due, as this could trigger a change of
control. Moreover, a potential capital loss by the PIK holders
could in turn negatively affect Agrokor's ability to tap the
credit markets in the near future.

Furthermore, Moody's considers that Agrokor's payables are high
for the industry. They amounted to HRK16,197 million (EUR2,175
million) as of 30 September 2016, which translates into 150 of
days payables outstanding (versus 60 to 90 days for retail peers).
A potential shortening of payment terms could strain Agrokor's
liquidity, although Moody's acknowledges that payables have been
broadly stable since the purchase of Mercator in 2014.

On the positive side, Moody's recognises that Agrokor has
sufficient liquidity to repay its 2017 and 2018 debt maturities.
At the end of September 2016, the restricted group reported
HRK2,286 million (EUR307 million) of cash and cash equivalents
compared to HRK959 million (EUR127 million) of short-term debt and
EUR150 million of loans maturing in September 2018.

Agrokor's B3 rating is based on the assumption that its leverage
will gradually stabilize. According to management, revenues were
flat on a like-for-like basis during the third quarter of 2016
despite the fierce competition of discounters. While the PIK debt
at the Adria level weighs on Agrokor's credit profile, a default
on the Adria debt -- which is not issued by or guaranteed by
Agrokor -- would not automatically or inevitably lead to a default
by Agrokor itself. Moody's currently forecasts that Agrokor's
Moody's-adjusted (gross) debt to EBITDA will reach 6x at the end
of 2017 and in 2018, or 6.8x including the PIKs. This assumes that
Agrokor will stop the erosion of its EBITDA, which fell by 9.6% to
to HRK3,020 million (EUR400 million) during the first nine months
of 2016.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects the uncertainties currently weighing
on Agrokor's credit quality due to the evidenced limited access to
the debt markets and the fast approaching deadline to refinance
the PIK debt at Adria.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Negative pressure on the rating could materialize if Agrokor's
Moody's-adjusted EBITA-to-interest expense ratio fell
substantially below 1.0x, if it failed to curb the deterioration
of its EBITDA, if free cash flows became significantly negative,
if its liquidity profile further weakens or if the refinancing of
the PIK note at Adria level negatively impacts Agrokor's liquidity
or access to the debt markets.

Upward rating pressure is currently limited in light of rating
action. An upgrade would require that (1) Agrokor improves its
operational performance, (2) improves its liquidity and access to
debt markets, notably through a credit neutral resolution of the
maturity of the PIKs, and (3) enhances its financial disclosures.
Quantitatively, Moody's could consider upgrading the ratings if
Agrokor managed to reduce its Moody's-adjusted debt-to-EBITDA
ratio significantly below 5.5x, excluding the PIKs. However
Moody's cautions that any change in the group structure may lead
to a revision of its debt-to-EBITDA target, for instance in case
of the creation of additional minorities in the group structure.

The principal methodology used in these ratings was Retail
Industry published in October 2015.



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F R A N C E
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REXEL SA: Moody's Assigns Ba3 Rating to EUR300MM Sr. Unsec. Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned a Ba3 rating to Rexel SA's
EUR300 million senior unsecured notes due 2024. Rexel's existing
ratings, comprising of Ba2 corporate family rating (CFR), Ba2-PD
probability of default rating (PDR), Ba3 ratings on the company's
existing senior unsecured notes and the NP short-term rating of
the company's EUR500 million commercial paper programme, remain
unaffected. The outlook on all ratings is stable.

Moody's understands that the proceeds of new senior unsecured
notes will be used to redeem in June the remaining USD330 million
principal outstanding of Rexel's 5.25% USD500 million senior
unsecured notes due 2020 and related transaction expenses.

Moody's will withdraw the Ba3 rating on 5.25% senior unsecured
notes due 2020 upon their redemption.

RATINGS RATIONALE

The Ba3 rating assigned to EUR300 million senior unsecured notes
due 2024 reflects their pari passu ranking with all other
unsecured indebtedness issued by Rexel and their unmitigated
structural subordination to non-financial liabilities at the
operating companies. Similar to Rexel's existing senior unsecured
notes issued in 2015 and 2016 the new notes will have a light
covenant package, i.e. exclude clauses for limitation on:
restricted payments; sales of assets and subsidiary stock; and
restrictions on distributions.

Rexel demonstrated resilient sales performance during 2016 despite
the adverse impact from the oil and gas exposure in North America
and weak macroeconomic environment in some key markets in Europe.
Reported revenue declined by 3% year-on-year (or 2% on a constant
currency and same-day basis). However profitability declined
further and Moody's adjusted leverage, assisted by debt
repayments, stayed flat year-on-year at 5.2x at the end of 2016
positioning it weakly in its rating category.

The transaction is expected to have a minimal effect on Moodys'
gross adjusted leverage whereas Moody's expect to see an
improvement in interest cover (currently at 3.2x EBITA/ Interest),
due to a lower coupon expected on the new notes.

Moody's expects to see a resumption of top-line growth in 2017 and
deleveraging from its current level driven by the improvement in
profitability.

Rexel's Ba2 CFR is supported by (1) the company's large scale and
geographic diversification; (2) strong market positions with
either number one or two market rankings in most Western European
countries and North American states; and (3) prudent financial
policy balancing year-end net leverage target of 3.0x (or 2.5x
starting from year-end 2018) with M&A and dividend payments.

Rexel's Ba2 rating is constrained by: (1) the company's weak
credit metrics over the last few years; (2) the uncertainty about
the pace at which credit metrics might improve on an organic basis
given the slow macroeconomic recovery in Europe and the late-cycle
nature of the industry; (3) deleveraging largely dependent on
future acquisitions and macroeconomic recovery.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's expectation that Rexel will
continue to demonstrate resilient performance in current
macroeconomic climate with sales growth and profitability level
improving from current levels. The stable outlook also assumes no
adverse change in the company's current financial policy in
relation to dividends and acquisitions.

WHAT COULD CHANGE THE RATING UP/DOWN

While unlikely at this stage, upward pressure on the ratings could
materialise over the medium term if Rexel demonstrates a prudent
financial policy as well as successfully achieving its target for
improving its profitability, leading to a leverage ratio (gross
debt/EBITDA, as adjusted by Moody's) trending towards 3.5x and a
Retained Cash Flow/debt (as adjusted by Moody's) above 15%.

The ratings could be downgraded if as a result of continued volume
pressure and a decline in Rexel's margins its leverage (gross
debt/EBITDA, as adjusted by Moody's) rises materially above 5.0x
or if its Retained Cash Flow/ debt (as adjusted by Moody's) falls
substantially below 10%.

Methodology

The principal methodology used in this rating was Distribution &
Supply Chain Services Industry published in December 2015.

Corporate Profile

Headquartered in Paris, France, Rexel SA (Rexel) is a global
leader in the low and ultra-low voltage electrical distribution
market. Rexel addresses three main markets: commercial, industrial
and residential. The company's distribution network is comprised
of around 2,000 branches in 32 countries employing more than
27,000 employees as at December 31, 2016. For the financial year
ended 31 December 2016 Rexel reported total sales and Adjusted
EBITA of EUR13.2 billion and EUR550 million respectively
representing 4.2% of 2016 sales. Rexel is a public company listed
on Euronext Paris.



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G R E E C E
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GREECE: Fitch Affirms Long-Term Issuer Default Ratings at 'CCC'
---------------------------------------------------------------
Fitch Ratings has affirmed Greece's Long-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) at 'CCC'. The issue ratings
on Greece's long-term senior unsecured foreign- and local-currency
bonds are also affirmed at 'CCC. The Short-term Foreign and Local
Currency IDRs and the rating on Greece's short-term debt have all
been affirmed at 'C', and the Country Ceiling at 'B-'.

KEY RATING DRIVERS

Greece's 'CCC' IDRs reflect the following key rating drivers:

The Greek government is broadly complying with the terms of the
EUR86 billion European Stability Mechanism (ESM) programme. The
second review of the programme remains incomplete and there are
disagreements among the country's European creditors and the IMF
around the long-term sustainability of Greek public debt. The
delay in the completion of the second review increases the risk
that the recent economic recovery will be undermined by a hit to
confidence or by the Greek government building up arrears with the
private sector to preserve liquidity.

The Greek government agrees with the IMF that further debt relief
is needed, but has objected to the fund's position that the
government should pre-legislate for specific automatic fiscal
correction measures in case it misses future primary surplus
targets. Even so, the current stand-off appears to be driven more
by the inter-creditor disagreement. Relations between the Greek
government and official creditors have stayed on a fairly firm
footing since the current ESM programme was agreed.

The government's compliance with the ESM programme conditions is
one reason that Fitch believes Greece's European creditors would
be prepared to proceed and disburse funds without IMF involvement.
Another reason is the desire to avoid a Greek political crisis
during an already congested European election year. However,
downside risks remain and a negative shock with respect to the
completion of the second review and the payment of the next
bailout tranche cannot be excluded.

Fitch's baseline is that an agreement will be reached. This
implies that the Greek government may have to adopt additional
fiscal measures, which increases the risk of early elections as
Syriza's slim parliamentary majority (153 out of 300 seats) makes
it harder for the government to maintain sufficient support for
unpopular measures. The extent to which Prime Minister Alexis
Tsipras will continue to be able to rely on votes from centrist
parties is unclear.

Early elections are not Fitch baseline. In Fitch views, Prime
Minister Tsipras will try to avoid elections: based on recent
polls, Syriza trails by more than 10pp the centre-right New
Democracy party, which has less ideological opposition to a number
of the programme measures but has been arguing for its
renegotiation in particular on the fiscal targets. Early elections
would provide an additional source of uncertainty that would
likely undermine the recent economic recovery.

Real GDP grew 0.3% in 2016 amid improved business and consumer
confidence and progress in clearing government arrears with the
private sector. Fitch has revised upwards its real GDP growth
forecasts to 2.5% and 3% in 2017 and 2018, from 1.8% and 2.2%
respectively. Pent-up investment demand, a declining unemployment
rate and continued clearance of government arrears are set to
support domestic demand. Resilient eurozone growth recovery should
support export performance.

Fitch estimates that Greece recorded a primary surplus of 2.5% of
GDP in 2016, well above the ESM programme target of 0.5%, owing to
higher-than-budgeted revenues. Revenue outperformance stems mainly
from stronger growth in indirect and corporate income tax
receipts. The 2016 outturn should make the 2017 target of 1.75%
easier to achieve. However, the 2018 target of 3.5% in 2018
remains challenging. The European creditors estimate the 2018
fiscal gap at EUR700 million (0.4% of GDP).

The government has already legislated "prior actions" measures,
which are projected to yield 3% of GDP through 2018, of which just
above two-thirds come from pension and income tax reform. Fairly
weak domestic ownership of programme measures makes full
implementation of these measures more difficult and the 2018
target harder to achieve. There is, however, a contingent fiscal
mechanism to retrospectively trigger further measures if a target
is missed, and tax efficiency reform on which the follow-through
is more uncertain.

Confidence in the banking sector remains fragile. The customer
deposit base is prone to volatility. After falling by 27% between
September 2014 and July 2015, private sector deposits have barely
recovered. Since the relaxation of capital controls in July 2016,
the inflow of deposits has been weak. Delays to the programme
review are likely to put additional pressure on investor
confidence, although capital controls should limit deterioration
in banks' liquidity position.

A key challenge for the banking sector is tackling non-performing
exposures (NPEs), which remain stubbornly high at 45.2% of gross
loans. Improvement has been made to the legal and institutional
framework for resolving loans and banks have stepped up their
restructuring efforts but with limited effect on the stock of NPEs
so far.

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

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

In accordance with its rating criteria, Fitch's sovereign rating
committee decided to adjust the rating indicated by the SRM by
more than the usual maximum range of +/- 3 notches because of
Greece's experience of financial crisis.

Consequently, the overall adjustment of five notches reflects the
following adjustments:

- Macro: -1 notch, to reflect a history of weak macroeconomic
management that contributed to financial crises and steep declines
in GDP;

- Public Finances: -1 notch, to reflect public debt at close to
180% of GDP; the SRM does not capture "non-linear" vulnerabilities
at such a high level;

- External finances: -2 notches, to reflect: a) Greece's high net
external debt which is not captured in the SRM, and lack of market
access which reduces financing flexibility a) and b) the +2 notch
SRM enhancement for "reserve currency flexibility" has been
adjusted to +1 notch given Greece's financial crisis experience;
- Structural Features: -1 notch, to reflect political risks to
the programme, and a weak banking sector reliant on official
sector funding and with capital controls still largely in place.

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

RATING SENSITIVITIES

Future developments that could, individually or collectively,
result in positive rating action include:

- Evidence that the recent economic recovery is sustained and a
   track record of achieving primary surpluses. Official sector
   debt relief would also provide upward momentum for the ratings
   over the medium-term;

- Further track record of successful implementation of the ESM
   programme, underpinned by an orderly working relationship
   between Greece and its official sector creditors and a fairly
   stable political environment.

Future developments that could, individually or collectively,
result in negative rating action include:

- A breakdown in relations between Greece and its creditors or
   domestic political instability disrupting economic and fiscal
   policies and out-turns;

- Non-payment, redenomination or distressed debt exchange of
   government debt securities issued in the market or a
   government-declared moratorium on all debt service.

KEY ASSUMPTIONS

- Fitch base case assumes the second programme review is
   completed ahead of the July debt maturities.

- Any debt relief given to Greece under the ESM programme will
   apply to official sector debt only, and would not therefore
   constitute an event or default under the agency's criteria.



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


DECO 7: Fitch Affirms Dsf Rating on EUR32.9MM Class H Notes
-----------------------------------------------------------
Fitch Ratings has affirmed DECO 7 - Pan Europe 2 p.l.c.'s
floating-rate notes due January 2018:

EUR27.5m class E (XS0244896394) affirmed at 'Csf'; Recovery
Estimate (RE) 20%
EUR19.4m class F (XS0246471881) affirmed at 'Csf'; RE 0%
EUR16.4m class G (XS0246474042) affirmed at 'Csf'; RE 0%
EUR32.9m class H (XS0246475445) affirmed at 'Dsf'; RE 0%

The transaction was the securitisation of 10 commercial real
estate loans originated by Deutsche Bank AG between August 2005
and February 2006. Only one loan remains -- the defaulted Karstadt
Kompakt loan, which is being specially serviced by Hatfield
Philips International Ltd. It is secured on two vacant retail
warehouses located in Germany.

KEY RATING DRIVERS

The affirmation reflects the inevitability of losses for all the
notes. The class H notes have already suffered a loss, as
reflected in their 'Dsf' rating.

Since the last rating action in February 2016, six assets securing
the Karstadt Kompakt loan have been sold for EUR13.5m (gross).
After deductions for sales costs, senior expenses and loan
interest, the noteholders received a principal payment of EUR10m,
fully repaying the class D notes and partially repaying the class
E notes. Furthermore, a reserve account for future costs is being
maintained from retained funds, totalling EUR4.1m as of end-
January 2017.

Taking the cash together with the two vacant retail warehouses
(both located in small/medium-sized German towns and valued at
EUR6.5m in March 2016), EUR10.6m of collateral stands behind the
EUR96.3m loan. One asset sale has been notarised while the other
property is being marketed. Fitch estimates that around 20% of the
class E notes will be recovered, subject to the length of time it
takes to be realised.

RATING SENSITIVITIES

The notes will be downgraded to 'Dsf' at the earliest of bond
maturity, loss realisation and missed interest.

Fitch estimates 'Bsf' proceeds of EUR5.5 million.



DECO 10: Fitch Affirms Dsf Rating on EUR18.7MM Class D Notes
------------------------------------------------------------
Fitch Ratings has taken the following rating actions on DECO 10 -
Pan Europe 4 p.l.c.'s floating-rate notes due October 2019:

EUR3 million class A2 (XS0276271375) upgraded to 'Asf' from
'BB+sf'; off Rating Watch Positive (RWP); Stable Outlook assigned

EUR31.9 million class B (XS0276272001) upgraded to 'BBsf' from
'B+sf'; off RWP; Positive Outlook assigned

EUR31.9 million class C (XS0276273074) affirmed at 'CCsf';
Recovery Estimate (RE) revised to 75% from 65%

EUR18.7 million class D (XS0276273660) affirmed at 'Dsf'; RE 0%

DECO 10 closed in December 2006 and was originally the
securitisation of 14 commercial real estate loans. In January
2017, four loans remained with collateral located in Germany and
the Netherlands.

KEY RATING DRIVERS

The upgrade of the class A2 notes to 'Asf' reflects the
significant repayment and resultant improved redemption prospects
since the last rating action. This, together with major repayments
expected in April 2017 (and supported by stressed collateral
coverage), drives the upgrade of the class B notes to 'BBsf'.
Should Nike sign up to a material lease extension, the rating on
the class B notes could see further upside. The class C notes are
affirmed as default remains probable, with improved recovery
prospects. The class D notes have already suffered a loss, as
reflected in the 'Dsf' rating.

The defaulted EUR77.2 million Treveria II loan (of which 50% is
securitised in DECO 10) is in the process of being liquidated. A
two phase bulk sale of 19 assets, which was notarised in 2016, is
expected to conclude in April 2017 when the remaining batch of 10
retail/retail warehouse assets is sold (phase one completed in
2016). Gross proceeds of EUR18.8m are expected (and notarised)
from this second batch, with a further EUR0.8m expected from a
separately notarised sale. A EUR7.3m cash reserve has been
escrowed for capital expenditure and expenses. A significant loss
on the loan will be realised once all asset sales have been
completed.

The EUR9 million ECP MF Portfolio had been expected to repay by
October 2016 but following a short term extension in January 2017
only 47% of the loan balance was repaid (following sale of part of
the German multifamily housing asset portfolio). The servicer
confirmed that the remaining assets have all been notarised and
are expected to be sold in time for the April 2017 payment date,
which would result in full repayment of the loan, in line with
Fitch's expectations (albeit delayed).

Since the last rating action in August 2016, the EUR42.2 million
Rubicon Nike loan defaulted at its extended maturity. Aggregate
principal payments of EUR3.7 million were made since October via a
mix of equity and surplus rent, allowing a standstill agreement to
be applied (until April). This gives the borrower some more time
to negotiate with the sole tenant (Nike) regarding a lease
extension beyond its 2019 expiry. This is viewed as critical for
the loan to be refinanced.

If the tenant agrees to a lease extension on revised terms, Fitch
believes that full loan repayment is possible - as reflected in
the Positive Outlook on the class B notes. However, should Nike
depart in 2019 Fitch believes that the class A2 and B notes will
still be repaid in full, from a combination of cash sweep from
Rubicon Nike (assuming no major interest rate rises occur over the
remaining lease term) and notarised sales from other loans.

With less than five years remaining to bond maturity, the ratings
are capped in the 'Asf' category in case of disruption in the
workout process adding to delays.

RATING SENSITIVITIES

The class B notes may be upgraded if Nike signs a new lease for
the Rubicon Nike asset at rent in line with market conditions.

Fitch estimates 'Bsf' proceeds of EUR59 million.



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


ARCELORMITTAL: Moody's Raises Corporate Family Rating to Ba1
------------------------------------------------------------
Moody's Investors Service has upgraded to Ba1 from Ba2 the
corporate family rating (CFR) and to Ba1-PD from Ba2-PD the
probability of default rating (PDR) of ArcelorMittal, the world's
largest steel producing company. At the same time, Moody's
upgraded to Ba1 from Ba2 the company's senior unsecured ratings
and affirmed its Not Prime short-term ratings. The outlook on all
the ratings is stable.

"Our upgrade to Ba1 reflects ArcelorMittal's strengthening credit
profile and continued improvement in market conditions since
Moody's stabilised the outlook last August, as well as its
significant deleveraging effort, which resulted in the reduction
of Moody's adjusted leverage to 3.9x at the end of 2016 from 6.5x
at the end of 2015, good liquidity and the company's return to be
free cash flow positive. Moody's also expects ArcelorMittal's
credit metrics to remain solid into 2018 as demand picks up in its
markets," says Hubert Allemani, a Moody's Vice President -- Senior
Analyst and lead analyst for ArcelorMittal.

RATINGS RATIONALE

The action reflects the marked improvement in ArcelorMittal's
profitability in 2016 in an improved pricing environment with a
reported EBITDA of USD6.2 billion compared to USD5.3 billion in
2015. ArcelorMittal's EBITDA margin increased to 11% compared to
8.2% in 2015, supported by the company's Action 2020 program and
higher EBITDA per ton of USD75 achieved in 2016 compared to USD62
in 2015. At the same time, the company lowered its total reported
indebtedness to USD13.7 billion at end-2016 from USD19.8 billion
at end-2015, which strengthen the company's balance sheet and
position it better in the rating category.

Moody's expects that ArcelorMittal will be able to maintain its
current profitability level this year because of expected demand
increase in all regions served by the company with notably
improvement expected in Brazil after two years of recession. The
pricing environment in the US and Europe should help stabilise
profitability at higher levels in future despite the ongoing risk
of price deflation due to imports. However, the trade protections
in the US and Europe should benefit ArcelorMittal giving the
company more pricing power and helping it to capture the expected
demand growth. Moody's anticipates that ArcelorMittal's Moody's-
adjusted EBITDA will stabilise at approximately USD6.5 billion in
2017 with a clear upside potential towards USD7 billion.

The company is expected to remain free cash flow (FCF) positive in
2017 in the range of USD300 million to USD350 million, despite
anticipated working capital requirements of approximately USD1
billion and increased capex to a guided level of USD2.9 billion
compared to USD2.4 billion in 2016. This should partially be
compensated by savings on interest of USD200 million compared to
2016 because of the lower debt level.

ArcelorMittal's Ba1 rating reflects its (1) strong market position
in the global steel industry; (2) strong geographical and product
diversification, which helps the company adapt to regional market
conditions; (3) partial vertical integration into iron ore and
coking coal, which mitigates the company's exposure to increase in
raw materials prices; and (4) strong liquidity profile.

However, the rating also reflects (1) uncertainties around the
recovery of the Brazilian market and increasing difficulties
exporting production out of Brazil due to rising global
competitiveness and import duties; (2) the high level of
competition from imported products from Asia into the US and
Europe, which affects pricing discipline and might lower market
share; and (3) the company's low Moody's-adjusted EBIT margin of
4.9% at end-2016.

LIQUIDITY

ArcelorMittal's liquidity is good and expected to remain strong
this year. At end-2016, the company's available liquidity amounted
to approximately USD8.1 billion, consisting of USD2.6 billion of
cash and cash equivalents, and USD5.5 billion of undrawn committed
revolving credit facilities (RCF). Moody's notes that the RCF,
split into two tranches, was successfully renewed in December 2016
and extended until 2019 and 2021. The company can also rely on
approximately USD500 million of short-term credit facilities to
cover its working capital needs and a EUR350 million "Finance
Contract" with the European Investment Bank in order to finance
European research and development projects. Moody's expects the
company to be free cash flow positive in the range of USD300
million to USD350 million.

The company's maturity profile has improved following the debt
repayment made during 2016, which targeted mostly short-term
maturities. The average debt maturity is now seven years with
approximately USD1.9 billion of maturities per year falling due in
2017 and USD1.6 billion in 2018.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's expectation that the company's
financial metrics will remain in line with current rating for the
next 12 months. Notwithstanding the rebound of a number of steel
product prices from the low levels seen at the end of 2015 and Q1
2016, Moody's expects that steel prices will remain under pressure
for the remainder of the year.

Finally Moody's expects that any potential M&A activity will not
significantly negatively affect the company's profitability or
positive free cash flow target.

WHAT COULD CHANGE THE RATING UP/DOWN

Moody's could upgrade the ratings if (1) Moody's adjusted leverage
were to trend below 3.0x on a sustainable basis; (2)
ArcelorMittal's profitability were to improve with its Moody's
adjusted EBIT margin to increase to levels above 8%; (3) the
company's cash from operation minus dividend (CFO-div) /debt were
to move towards 25%; and (4) the company is free cash flow
positive on a sustainable basis.

Moody's could downgrade the rating if (1) the company's
profitability falls with its Moody's-adjusted EBIT dropping below
6%; (2) ArcelorMittal's Moody's-adjusted leverage remains
consistently above 4.0x debt/EBITDA; (3) its (CFO-div) /debt
decreases below 15%; (4) it pursues M&A activity resulting in
higher leverage and (5) the company is free cash flow negative
over multiple years.

LIST OF AFFECTED RATINGS

Upgrades:

Issuer: ArcelorMittal

-- LT Corporate Family Rating (Foreign Currency), Upgraded to
    Ba1 from Ba2

-- Probability of Default Rating, Upgraded to Ba1-PD from Ba2-PD

-- Senior Unsecured Shelf, Upgraded to (P)Ba1 from (P)Ba2

-- Senior Unsecured Medium-Term Note Program, Upgraded to (P)Ba1
    from (P)Ba2

-- Senior Unsecured Regular Bond/Debenture, Upgraded to Ba1 from
    Ba2

Affirmations:

Issuer: ArcelorMittal

-- Commercial Paper, Affirmed NP

-- Senior Unsecured Medium-Term Note Program, Affirmed (P)NP

Outlook Actions:

Issuer: ArcelorMittal

-- Outlook, Remains Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global Steel
Industry published in October 2012.

ArcelorMittal is the world's largest steel producing company, with
an annual production of more than 90 million tons of crude steel
and steel shipments of 83.9 million tons in the financial year
ended 31 December 2016. The company operates in more than 60
countries worldwide, with steel manufacturing plants in 20. For
the full year 2016, the company reported revenue of USD56.79
billion and a EBITDA of USD6.2 billion.



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


BABSON EURO 2014-1: Moody's Confirms B2 Rating on Cl. F Debt
------------------------------------------------------------
Moody's Investors Service has confirmed the ratings of the
following classes of notes issued by Babson Euro CLO 2014-1 B.V.:

-- EUR20,500,000 Refinancing Class B-1 Senior Secured Floating
Rate Notes due 2027, Confirmed at Aa2 (sf); previously on Jan 16,
2017 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, Confirmed at Aa2 (sf); previously on Jan 16, 2017
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, Confirmed at A2 (sf); previously on Jan 16, 2017
A2 (sf) Placed Under Review for Possible Upgrade

-- EUR19,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2027, Confirmed at Baa2 (sf); previously on Jan 16, 2017
Baa2 (sf) Placed Under Review for Possible Upgrade

-- EUR14,500,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2027, Confirmed at B2 (sf); previously on Jan 16, 2017
B2 (sf) Placed Under Review for Possible Upgrade

Babson Euro CLO 2014-1 B.V., issued in April 2014, is a
collateralised loan obligation ("CLO") backed by a portfolio of
mostly high yield European loans. The portfolio is managed by
Barings (U.K.) Limited. The transaction's reinvestment period ends
in April 2018.

RATINGS RATIONALE

Moody's has concluded that the reduced weighted average life of
the portfolio and decreased spreads/coupon levels on Classes A-
1/A-2 and Classes B-1/B-2, although credit positive, are not
sufficient for assigning higher ratings on the Classes B-1/B-2, C,
D and F notes. A number of points in the Moody's Test Matrix are
not passing for Classes B-1/B-2, C and D at higher target ratings.

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 Actions:

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 Moody's 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 ratings 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 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



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


FAR EASTERN SHIPPING: Kapital Asset Files Bankruptcy Claim
----------------------------------------------------------
Andrey Lemeshko at Bloomberg News, citing an arbitration filing,
reports that Kapital Asset Management filed a bankruptcy claim
against Far Eastern Shipping Company.

Details of the claim weren't disclosed, Bloomberg states.

Kapital Asset Management press service confirmed that a claim was
submitted, Bloomberg notes.

Headquartered in Moscow, Russia, Far-Eastern Shipping Company PLC,
together with its subsidiaries, provides logistical solutions
through a combination of shipping, rail, trucking, and port
services in the Russian Federation and internationally.


SBERBANK: To Benefit From Growing Housing Loans, Moody's Says
-------------------------------------------------------------
Mortgage loans -- Russia's fastest-growing, lowest-risk banking
product -- are set to benefit the country's largest state-
controlled banks and subsidiaries of foreign banks, says Moody's
Investors Service in a published report entitled "Banks - Russia:
Mortgage Lending Growth Will Benefit Largest State Banks And
DeltaCredit."

"The largest state-controlled banks and subsidiaries of foreign
banks will benefit from housing loan growth in Russia," says Petr
Paklin, Assistant Vice President at Moody's. "Sberbank (LT
foreign-currency bank deposit Ba2 stable, BCA ba1), VTB24 (LT
foreign-currency bank deposit Ba2 stable, BCA b1) and DeltaCredit
Bank (LT foreign-currency bank deposit Ba2 stable, BCA ba3) will
benefit the most from the growing mortgage market."

Aside from their low credit risk and being the source of recurring
income, mortgages also create cross-selling opportunities for
banks through demand from new customers for unsecured lending and
deposits, says Moody's.

Residential mortgages in Russia quadrupled in six recent years and
expanded to a 42% share of gross retail loans as of January 2017.
Mortgage penetration in Russia, however, at approximately 5% of
GDP, is still far below Central and Eastern European peer
countries, which have average penetration ratios of roughly 19%.

Mortgages in Russia therefore have the potential for further
growth due to their relatively low cost of risk, as well as the
expected decline in the Central Bank's key interest rate and, by
extension, banks' funding costs.

Further mortgage market growth could be driven by the use of
securitisation as a funding instrument. Russian residential
mortgage-backed securities (RMBS) performed relatively well during
the country's recent financial downturn and the securitisation
market in Russia has room to grow, according to the rating agency.

Agency for Housing Mortgage Lending JSC (AHML; LT issuer rating
Ba1 stable) plan to grow its securitized mortgage portfolio by up
to seven times over the next four years will also increase
mortgage supply, says Moody's.


TATFONDBANK: TAIF Group Eyes Participation in Bailout
-----------------------------------------------------
According to Reuters, Interfax, citing a press-service statement
of President of Tatarstan, reports that that TAIF Group has sent a
proposal to be an investor in Tatfondbank's bailout.

                          Moratorium

As reported by the Troubled Company Reporter-Europe on Dec. 22,
2016, guided by Article 18938 of the Federal Law "On Insolvency
(Bankruptcy)", the Bank of Russia imposed a three-month moratorium
on satisfying claims of creditors of Public Joint-stock Company
Tatfondbank from December 15, 2016 due to the bank's failure to
satisfy creditors' monetary claims within the timeframe exceeding
seven days from the deadline, according to the press service of
the Central Bank of Russia.  The Bank of Russia also appointed the
state corporation Deposit Insurance Agency as a provisional
administrator for six months from December 15, 2016, due to the
unstable financial position of PJSC Tatfondbank and threats to the
interests of its creditors and depositors.

Headquartered in Kazan, Russia, Public Joint Stock Company
Tatfondbank provides various banking products and services to
individual and corporate customers. It operates through three
segments: Corporate Banking, Retail Banking, and Investment
Banking.

                         *   *   *

The Troubled Company Reporter-Europe reported on Dec. 19, 2016,
That Moody's Investors Service downgraded Tatfondbank's long-term
foreign and local-currency deposit and debt ratings to Caa1 from
B3.  At the same time, its baseline credit assessment (BCA) and
adjusted BCA were downgraded to caa3 from caa1, while the
Counterparty Risk Assessment (CRA) was downgraded to B3(cr) from
B2(cr).  All above mentioned ratings were placed on review for
downgrade, reflecting the uncertainty regarding the bank's future
financial standing and support.

On Dec. 26, 2016, the TCR-Europe reported that S&P Global Ratings
lowered its long- and short-term counterparty credit ratings on
Russia-based PJSC Tatfondbank to 'D' (default) from 'CCC-/C'.  S&P
also lowered the Russia national scale rating to 'D' from 'ruCCC-
'.  At the same time, S&P lowered the ratings on Tatfondbank's
senior unsecured debt to 'D' from 'CCC-'.



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


ISTANBUL: Fitch Affirms BB+ Long-Term IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed the Metropolitan Municipality of
Istanbul's Long-Term Foreign Currency (LT FC) Issuer Default
Rating (IDR) at 'BB+' and Short-Term Foreign Currency IDR at 'B'.
Further, Fitch has affirmed Istanbul's Long Term Local Currency
(LT LC) IDR at 'BBB-' and National Long-Term Rating at 'AAA(tur)'.
The Outlooks are Stable.

The affirmation of the LT FC IDR at 'BB+' reflects Istanbul's
solid operating performance in line with Fitch unchanged base case
scenario, which Fitch expects to continue, due to Istanbul's well
diversified and well above-average local economy. This is despite
accelerated direct debt due to large capex realisations ahead of
2019 local elections and significant FX risk,

The affirmation of the LT LC IDR at 'BBB-' reflects that although
the accumulation of direct debt would increase debt-to-current
revenue to 85% in 2019 from 61% in 2016, and place the city in the
lower level of the 'BBB' category, an expected healthy operating
balance should support its debt-to-current balance at two years on
average. Further, Fitch expects Istanbul's committed unused bank
lines and strong access to financial markets to mitigate immediate
liquidity and refinancing risks.

KEY RATING DRIVERS

Fiscal Performance (Strength/ Stable): Fitch projects Istanbul to
post strong, albeit declining, operating margins in the high 40%
in 2017-2019. Fitch expects operating margins to fall on the back
of higher operating expenditure ahead of the local elections in
2019. In 2016 the operating margin was 47%, slightly higher than
an expected 44%, due to the city's well- diversified economy.

According to pre-closing 2016 figures the push for large capex
realisation at 99.4% against Fitch expectations (82%) worsened the
budget deficit before debt variation to 28.6% of total revenue,
while capital revenue coverage fell below 10% of capex against an
expected 19.2%.

For 2017-2019, Fitch therefore expects a continuation of high
capex realisations at almost 100% to result in large budget
deficits before financing at an average of 22% of total revenue.
This is because Fitch estimates the current balance would cover on
average only 53% of capex, while capital revenue coverage would be
limited at 11% due to a subdued recovery of the local economy

Debt (Neutral/ Negative): The push for high capex realisations
accelerated debt funding and debt-to-current balance to two years
from a strong one year. At the same time, Fitch expects direct
debt-to-current revenue to increase to 85%, which if exceeded as a
result of capex, would trigger a negative rating action on the LT
LC IDR. As a result Fitch has changed the trend for debt and
liquidity to negative from stable, on the assumption that debt
ratios will be stressed, although the city's operating balance
should still be sufficient to cover debt servicing by 20x ( 3-year
median: 22x)

Fitch expects Istanbul to continue to increase inter-company
borrowing at zero cost from its water management affiliate ISKI to
TRY5.3bn at end-2019, from TRY3.6bn at end-2016, for which no
payment has been made to date. Fitch expects this debt will be
netted against the transfer of assets that belong to Istanbul and
Fitch classify this debt as direct risk. ISKI is one of the most
profitable companies of Istanbul and its debt is negligible with
debt-to-current revenue below 1%. Contingent liabilities of the
city are low, as most of its companies are self-funding. Their
debt accounted for 2.4% of the city's operating revenue in 2016.

Istanbul faces significant foreign exchange risk in times of
elevated financial volatility as 98% of its debt at end-2016 was
foreign currency-denominated and unhedged, up from 97% in 2015.
Euro-denominated loans constitute 91% of foreign-currency debt,
with the remainder comprising US dollar-denominated loans.

The weighted maturity of Istanbul's foreign currency debt was nine
years at end-2016, well above the city's expected debt payback
(direct debt/current balance) of two years. This, together with
the city's several credit lines with state-owned and commercial
banks, mitigates short-term refinancing risk.

Economy (Strength / Stable): Fitch changed the status on economy
to Strength from Neutral as Istanbul is Turkey's main economic
hub, contributing on average 25.5% of the country's gross value
added in 2006-2012 (latest available statistics), with wealth
levels far above the national average. This enables a continuation
of fiscal strength and strong access to financial markets and
therefore to liquidity. Rapid urbanisation and continued
immigration flows challenge the province with a continued need for
infrastructure investments. In 2016, the population grew 1.7% yoy
to 14.8 million.

Fitch expects the national economy to grow on average 2.6% in 2017
-2018, up from a low of 1.8% in 2016, in turn supporting
Istanbul's economy and fiscal capacity. Consequently, Fitch has
increased Fitch forecast for Istanbul of nominal growth of tax
revenues to 13% yoy, from 10%, for 2017-2019 (3-year median at
13.4%) since Fitch last rating action.

Management (Neutral/ Negative): Istanbul has a track record of
disciplined expenditure policy, and an expenditure realisation
rate at about 100% of budgeted total expenditure in the last year.
However, Fitch has put a negative trend on the administration due
to a lack of an explicit strategy on the repayment of ISKI debt,
and bus operator IETT's debt.

RATING SENSITIVITIES

The rating of Istanbul is at the sovereign rating level. A
reduction of city's debt-to-current revenue below 60% on a
sustained basis, coupled with continued financial strength and
consistent management policies, would be positive for Istanbul's
ratings

A negative rating action on Turkey would be mirrored on Istanbul's
ratings. A sharp increase in Istanbul's direct debt-to-current
revenue above 100%, driven by a high materialisation rate of capex
and local currency devaluation could also lead to a downgrade of
LT LC IDR.



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


PJSC FORTUNA-BANK: Deposit Guarantee Fund Starts Liquidation
------------------------------------------------------------
Interfax Ukraine, citing fund's website, reports the Individuals'
Deposit Guarantee Fund from February 22, 2017 started the
liquidation of PJSC Fortuna-Bank (Kyiv).

According to its information, the liquidation procedure will last
two years until February 21, 2019 inclusive, the report notes.

Andriy Fedorchenko has been appointed liquidator for the
corresponding period.

As reported, the National Bank of Ukraine on February 21, 2017
decided to revoke the banking license and liquidate Fortuna-Bank,
Interfax Ukraine relays.

The report notes that Fortuna-Bank was declared insolvent on
January 26, 2017.  The deposit guarantee fund from January 27
introduced temporary administration in the financial institution
for a period of one month, the report relays.

As reported, with reference to the National Bank, 91% of all
Fortuna-Bank depositors will get their deposits in full, because
their size does not exceed the guaranteed sum of UAH200,000, the
report discloses.



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


BHS GROUP: Philip Green Pays GBP363MM to Insolvent Pension Fund
---------------------------------------------------------------
Mark Vandevelde at The Financial Times reports that Sir Philip
Green has paid GBP363 million to a stricken pension fund left
insolvent by the collapse of BHS Group.

BHS went into insolvency after Sir Philip sold it for GBP1 to
Dominic Chappell, an ex-bankrupt who has acknowledged receiving
GBP4.1 million in salary, bonuses, fees and loans during his
chaotic 13-month spell in charge, the FT recounts.

According to the FT, the billionaire stated on Feb. 28 that the
Pension Regulator was "satisfied" with the deal and had abandoned
legal proceedings aimed at securing a compulsory payment.

Frank Field, the work and pensions committee chair who has been
Sir Philip's most vocal parliamentary opponent, told the FT last
year that Sir Philip should pay GBP571 million to the pension
scheme or be stripped of his gong.  But the FT reported in August
that regulators had settled on a figure of about GBP350 million.

                         About BHS

BHS Group was a high street retailer offering fashion for the
whole family, furniture and home accessories.

BHS was put into administration in April 2016 in one of the
U.K.'s largest ever corporate failures, according to The Am Law
Daily.  More than 11,000 jobs were lost and 20,000 pensions (the
U.K. equivalent of a 401k) put at risk after it emerged that the
company, which had more than 160 stores across the U.K., had a
pension deficit of GBP571 million (US$703 million), The Am Law
Daily disclosed.

Sir Philip Green, a retail magnate with a net worth of more than
US$5 billion, has been heavily criticized for his role in the
collapse of BHS, The Am Law Daily said.  Mr. Green and other
shareholders had taken around GBP580 million (US$714 million) out
of the business before selling it for just GBP1 (US$1.23), The Am
Law Daily noted.

Linklaters acted for Green's Arcadia Group on the sale of the
company to Retail Acquisitions, which was advised by London-based
technology, media and telecoms specialist Olswang, The Am Law
Daily added.

Weil Gotshal & Manges and DLA then took the lead roles on the
administration, acting for the company and administrators Duff &
Phelps, respectively, while Jones Day was appointed by the
administrators to investigate the actions of the company's former
directors, The Am Law Daily related.


FRANK DALE: To Go Into Liquidation, Failed to Keep Up w/Orders
--------------------------------------------------------------
Bethany Whymark at Eastern Daily Press reports Frank Dale Foods
Ltd, a south Norfolk family food firm, is set to go into
liquidation after failing to keep pace with a mounting order book.

Frank Dale Foods Ltd is set to appoint a liquidator at a
creditors' meeting if a purchaser for the GBP4.8 million-turnover
company cannot be found, according to Eastern Daily Press.

The report notes that despite healthy results in the preceding
years, increasing pressure on production facilities and an
unsuccessful attempt to break into the European market last year
led to a GBP500,000 loss for 2016 and have left the future of
Frank Dale and its 57 staff in jeopardy.

Insolvency specialists are confident an agreement can be reached
to save at least some jobs, the report relays.

Company chairman Nigel Cushion said the Dale family had been left
"devastated" after a disastrous 2016, which capsized the business,
Eastern Daily Express relates.

The report quotes Mr. Cushion as saying, "We had a great brand but
we had to try to mature the business to get it ready for the much
bigger companies. We have probably moved too fast and been too
successful in getting that work in, and not been able to fulfil
it."

The report notes that Mr. Cushion said the company did not notice
how dire the financial situation had become until the last three
months of 2016, when the vast majority of its revenue ordinarily
comes in.

Norwich-based insolvency specialists McTear Williams and Wood is
acting for the company in negotiations with creditors, which were
due to have taken place on February 28, the report relays.

Andrew McTear said Frank Dale Foods had a "strong order book"
going into 2016, but could "not turn out the product efficiently,"
the report notes.

The report relays that Mr. McTear said there has been interest
from more than one party in taking on the company, with the
possibility that both its Bunwell factory and the majority of jobs
could be saved.

Established in 1994, Frank Dale Foods manufactures premium party
food for customers around the UK, specialising in ready-to-cook
foodstuffs from quiches and canapÇs to fruit pies.


LASER ABS 2017: Moody's Assigns (P)Ba3 Rating to Cl. D Notes
------------------------------------------------------------
Moody's Investors Service has assigned the following provisional
ratings to notes to be issued by LaSer ABS 2017 PLC:

-- GBP[]M Class A Asset Backed Floating Rate Notes Due 2030,
Provisional Rating Assigned (P)Aaa (sf)

-- GBP[]M Class B Asset Backed Floating Rate Notes Due 2030,
Provisional Rating Assigned (P)A1 (sf)

-- GBP[]M Class C Asset Backed Floating Rate Notes Due 2030,
Provisional Rating Assigned (P)Baa3 (sf)

-- GBP[]M Class D Asset Backed Floating Rate Notes Due 2030,
Provisional Rating Assigned (P)Ba3 (sf)

Moody's has not assigned a rating to the GBP[]M Class E Asset
Backed Fixed Rate Notes Due 2030, which will also be issued at
closing of the transaction.

RATINGS RATIONALE

The transaction is a twelve-month revolving cash securitisation of
consumer loans extended to individual borrowers located in the
England and Wales.

The loans were originated by Creation Consumer Finance Limited,
the "Originator". The Originator is not rated, and is ultimately
owned by BNP PARIBAS Personal Finance (A1/(Aa3(cr)). This is the
first public securitisation by the Originator. The Originator is
also acting as servicer in the transaction.

As of November 2016, the GBP535.7 million provisional portfolio
backing the notes consisted of 470,321 consumer loans with a
weighted average seasoning of 13.3 months. The portfolio consists
of point of sale loans ("POS Loans") granted to finance purchases
of mostly furniture and electrical goods (70.1%) and general
consumer loans ("Personal Loans") granted to finance debt
consolidation, car purchases, home improvements or other. The
majority of POS Loans do not pay interest while the Personal Loans
have a weighted average interest rate of 14.0% as of the closing
date.

The transaction will be revolving for the first 12 months after
the closing date. During this period, the share of Personal Loans
cannot exceed 30% and minimum interest yield on the portfolio is
4%.

The transaction benefits from credit strengths such as the
granularity of the portfolio, stable historical performance of POS
loans over the 2008-2011 downturn in the UK, and strong market
position in point of sale financing and experience of the
Originator.

However, Moody's notes that the transaction features some credit
weaknesses. The level of excess spread may change substantially
over the life of the deals as c. 64.5% of the portfolio consists
of zero interest contracts. There is also a high reliance on the
Originator and BNP Group in its servicing and cash management
roles.

The transaction has a sequential amortisation structure once the
revolving period has ended after 12 months or if early
amortisation triggers are breached. The cash reserve will be fully
funded at closing. The cash reserve of 1.0% of the rated notes
will be amortising subject to a floor. Principal to pay interest
and the cash reserve will be the transaction's primary source of
liquidity.

Collateral performance assumption

Moody's determined the portfolio lifetime mean default rate of
6.0%, expected recoveries of 15% and Aaa portfolio credit
enhancement ("PCE") of 21.5%. The mean default rate and recoveries
capture Moody's expectations of performance considering the
current economic outlook, while the PCE captures the loss Moody's
expects the portfolio to suffer in the event of a severe recession
scenario. Mean loss and PCE are parameters used by Moody's to
calibrate its lognormal portfolio loss distribution curve and to
associate a probability with each potential future loss scenario
in its ABSROM cash flow model to rate consumer loans ABS.

The portfolio expected mean defaults level of 6.0% is slightly
worse than the EMEA consumer loans average and is based on Moody's
assessment of the lifetime expectation for the pool taking into
account (i) obligor defaults, and (ii) possible deterioration of
portfolio composition during the revolving period.

The PCE of 21.5% is slightly worse than EMEA consumer loan peers
on average and is based on Moody's assessment of the pool. The PCE
of 21.5% results in an implied coefficient of variation ("CoV") of
36.4%.

METHODOLOGY

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

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

Factors that may cause an upgrade of the rating of the class B, C
& D notes include significantly better than expected performance
of the pool together with an increase in credit enhancement of
notes.

Factors that may cause a downgrade of the ratings of the notes
include a worsening in the overall performance of the pool, or a
meaningful deterioration of the credit profile of the servicer.

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

LOSS AND CASH FLOW ANALYSIS:

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

STRESS SCENARIOS:

In rating consumer loan ABS, default rate and recovery rate are
two key inputs that determine the transaction cash flows in the
cash flow model. Parameter sensitivities for this transaction have
been tested in the following manner: Moody's tested six scenarios
derived from a combination of mean default rate: 6.0% (base case),
6.5% (base case + 0.5%), 7.0% (base case + 1.0%) and recovery
rate: 15.0% (base case), 10% (base case - 5%), 5% ( base case -
5%).

The model output results for the class A notes under these
scenarios stay Aaa (base case) assuming the mean default rate is
6.5% and the recovery rate is 5%, all else being equal. Parameter
sensitivities provide a quantitative/model indicated calculation
of the number of notches that a Moody's rated structured finance
security may vary if certain input parameters used in the initial
rating process differed. The analysis assumes that the deal has
not aged. It is not intended to measure how the rating of the
security might migrate over time, but rather how the initial model
output for the class A notes might have differed if the two
parameters within a given sector that have the greatest impact
were varied. Model output results for the class B, C to D notes
are shown in the pre-sale report for this securitization.


LASER ABS 2017: Fitch Assigns 'BB+(EXP)' Rating to Class D Notes
----------------------------------------------------------------
Fitch Ratings has assigned LaSer ABS 2017 plc expected ratings as
follows:

Class A: 'AAA(EXP)sf'; Outlook Stable
Class B: 'A(EXP)sf'; Outlook Stable
Class C: 'BBB(EXP)sf'; Outlook Stable
Class D: 'BB+(EXP)sf'; Outlook Stable
Class E: Not rated

The final ratings are contingent upon the receipt of final
documents and legal opinions conforming to the information already
received.

The transaction is a securitisation of a pool of unsecured
consumer loans originated by Creation Consumer Finance Limited
(CCFL) to borrowers in England and Wales. CCFL is a wholly-owned
subsidiary of Creation Financial Services Limited, which is in
turn 100% owned by BNP Paribas S.A. (A+/Stable/F1). The
transaction features an initial revolving period of one year,
after which the notes will amortise sequentially on monthly
payment dates.

KEY RATING DRIVERS

Performance Differences across Products

The preliminary portfolio consists of interest-free point-of-sale
loans, interest-bearing point-of- sale loans and personal loans,
which have shown distinct historical default performance. To
reflect these differences, Fitch has assigned a default base case
of 2.5% for interest-free point-of-sale loans, 7.5% for interest-
bearing point-of-sale loans and 12% for personal loans.

Revolving Period Migration

The stop-revolving triggers are deemed by Fitch to adequately
protect the transaction against material performance deterioration
during the scheduled revolving period of 12 months. Fitch modelled
some migration of the initial pool towards more adverse risk
characteristics, assuming a shift towards the products with higher
default rates, as limited by the documented concentration limits
of 30% for personal loans and 7% for interest-bearing point-of-
sale loans.

Limited Excess Spread Available

Of the preliminary pool balance, 65% is made up of zero interest-
rate loans. Fitch has tested the ability of the remaining share of
the pool to generate sufficient interest to pay senior expenses
and interest on the notes, assuming the pool yields a weighted
average of 4.8% at the end of the revolving period, modelling a
shift towards the documented minimum for each interest-bearing
sub-pool.

Junior Interest Deferral

In high-stress scenarios, interest payments on junior notes will
be deferred, speeding up the amortisation of the senior notes.
While interest is being deferred on the class B or C notes, the
relevant class will also not benefit from liquidity reserve
coverage.

RATING SENSITIVITIES

Expected impact on the notes' rating of increased defaults (class
A/B/C/D):
Current ratings: 'AAAsf'/'Asf'/'BBBsf'/'BB+sf'
Increase default base case by 10%: 'AA+sf'/'A-sf'/'BBBsf'/'BBsf'
Increase default base case by 25%: 'AAsf'/'BBB+sf'/'BBB-sf'/
'BB-sf'
Increase default base case by 50%: 'A+sf'/'BBB-sf'/'BBsf'/'Bsf'

Expected impact on the notes' rating of reduced recoveries (class
A/B/C/D):
Current ratings: 'AAAsf'/'Asf'/'BBBsf'/'BB+sf'
Reduce recovery base case by 10%: 'AA+sf'/'Asf'/'BBBsf'/'BB+sf'
Reduce recovery base case by 25%: 'AA+sf'/'Asf'/'BBBsf'/'BB+sf'
Reduce recovery base case by 50%: 'AA+sf'/'A-sf'/'BBBsf'/'BBsf'

Expected impact on the notes' rating of increased defaults and
reduced recoveries (class A/B/C/ D):
Current ratings: 'AAAsf'/'Asf'/'BBBsf'/'BB+sf'
Increase default base case by 10%; reduce recovery base case by
10%: 'AA+sf'/'A-sf'/'BBBsf'/'BBsf'
Increase default base case by 25%; reduce recovery base case by
25%: 'AAsf'/'BBB+sf'/'BB+sf'/'BB-sf'
Increase default base case by 50%; reduce recovery base case by
50%: 'Asf'/'BBB-sf'/'BB-sf'/NR


MARRACHE & CO: Suits Mulled Against Banks Handling Accounts
-----------------------------------------------------------
Gabriella Peralta at Gibraltar Chronicle reports that lawyers for
liquidators suing Jyske Bank in the wake of the collapse of
Marrache & Co told the Supreme Court on Feb. 27 that lawsuits
could be lodged against other banks that were allegedly "just as
bad" in their handling of the firm's accounts.

The claim was made during the first day of closing submissions in
the month-long legal case brought by the liquidators of Marrache &
Co, who argue that Jyske Bank "dishonestly assisted" the law
firm's senior partners to defraud their clients, Gibraltar
Chronicle relates.

According to Gibraltar Chronicle, Jyske Bank strongly disputes the
allegation and on Feb. 27 the court was told that other banks had
acted similarly when holding accounts for the collapsed law firm.

Marrache & Co was a Gibraltar-based law firm.


SEADRILL LTD: May Miss Debt Restructuring Deadline
--------------------------------------------------
Mikael Holter at Bloomberg News reports that Seadrill Ltd., the
offshore driller controlled by billionaire John Fredriksen, warned
that it may miss a deadline in challenging talks to restructure
the industry's heaviest debt load, forcing it to implement
emergency plans that could include filing for bankruptcy
protection.

"It will be challenging for the company to finalize a fully
consensual agreement before April 30, 2017," Bloomberg quotes the
company as saying.  "In the event a consensual restructuring
agreement is not concluded or an agreement to an extension is not
reached, we are also preparing various contingency plans,
including potential schemes of arrangement or chapter 11
proceedings."

Seadrill has been able to obtain postponements before, but said in
its fourth-quarter report on Feb. 28 that it may now be unable to
obtain an extension at terms it can accept, Bloomberg relates.  It
said last month that restructuring talks have proven more
difficult than expected ahead of an April 30 deadline, which marks
the new maturity date for a credit facility and a milestone for
bank-facility amendments secured last year, Bloomberg recounts.

Seadrill is negotiating with shareholders and creditors to
restructure a mountain of debt that rapidly became difficult to
handle after oil prices started to tumble in 2014, Bloomberg
discloses.  With net interest bearing debt of US$8.9 billion at
the end of 2016, the former crown jewel of Fredriksen's business
empire has been particularly exposed as oil companies slashed
spending, reducing demand for drilling services even as new rigs
ordered during the boom years added to the oversupply, Bloomberg
relays.

The driller has proposed raising at least US$1 billion in new
capital, but its plan remained apart from an alternative proposal
by bondholders which includes a significant conversion of debt
into equity, Bloomberg discloses.  The two December-dated
proposals were made public last month at the expiration of a
restriction period for the negotiating parties, Bloomberg states.

Seadrill said in the Feb. 28 report bondholders are not currently
restricted, Bloomberg notes.

According to Bloomberg, Seadrill said on Feb. 28 a comprehensive
solution will likely require conversion of bonds to equity.

Headquartered in London, Seadrill is an offshore drilling
contractor.  It operates from six regional offices around the
world -- Oslo, Dubai, Houston, Singapore, Rio De Janeiro and
Ciudad del Carmen.


THOMAS COOK: Fitch Revises Outlook to Pos. & Affirms B IDR
----------------------------------------------------------
Fitch Ratings has revised Thomas Cook Group Plc's (TCG) Outlook to
Positive from Stable. The Long-Term Issuer Default Rating (IDR) is
affirmed at 'B'. Fitch has also affirmed the senior unsecured
rating at 'B+'/'RR3' for the notes issued by TCG and Thomas Cook
Finance plc.

The positive outlook reflects TCG's improving business profile,
which over the years has demonstrated increasing resilience to
external events. Continuing restructuring efforts are also helping
to boost long-term operating margins and strengthen the business
model, resulting in enhanced financial trends.

An upgrade of the rating within the next 12 months is likely if
the group continues to perform in line with Fitch conservative
expectations, which includes turning around the German airlines
division or improving group profitability including maintaining
positive post-dividend free cash flow on a sustained basis.
Sustained gross debt redemptions will be positive for the credit
profile, both in terms of allowing greater financial flexibility
given the sector profile, but also in terms of potentially
enhanced recovery prospects for senior noteholders.

KEY RATING DRIVERS

Improving Business Profile: Fitch expects TCG to meet Fitch
positive rating sensitivity guidance for EBIT margins within a
two-year horizon, with EBIT margins expected to improve to pre-
2008 levels of 4.5% by the financial year to 30 September 2019
(FY19) on a sustained basis. Over the past five years, management
has strengthened its business profile, cut costs, improved its
product offering, diversified its customer base and enhanced
competitiveness. The group is also expanding geographically under
its partnership with Fosun into China, which despite being in
start-up phase, is viewed positively leading to Fitch views of an
increasingly robust business model.

Increasing Resilience: TCG benefits from a strong and trusted
brand and is the world's second-largest tour operator. While its
ratings reflect the high risk inherent in the tour operator
sector, the group consistently demonstrates its flexibility in
coping with external shocks. For example, it safely repatriates or
moves passengers to alternative destinations thereby partially
mitigating the financial impact on the group. In 2016, TCG was
able to directly offset 57% of the negative impact on its revenue
from the events in Turkey, Egypt and Tunisia.

Condor Remains Challenging: Fitch expects the airlines division to
remain challenging particularly Condor. Management are
implementing an action plan to turnaround its Condor division,
targeting GBP35m of annualised profit improvement by FY18. In
Fitch views, such target will be challenging to achieve given the
heavy competition in the local German market therefore Fitch only
factor in a modest profit contribution in Fitch conservatives
Fitch forecast from FY18 onwards. However, Fitch acknowledge the
other airlines operated by the group are performing reasonably
well as they benefit from a much larger proportion of seats loaded
by TCG's tour operator business.

Exposure to External Risks: The tour operator business is
vulnerable to a high level of risks and events, most notably
geopolitical events, macro-economic pressure and changing weather
patterns. Fitch expects TCG to continue to develop its flexibility
in responding to such developments, which together with increased
diversification of source markets and destinations, should help
mitigate their impact and further support Fitch views on the
groups increasing resilience, which underpins Fitch positive
outlook.

Steady Cash Flow Generation: Fitch expects funds from operation
(FFO) as a percent of revenue to improve to 4.9% by FY19, having
recovered significantly as the heavy costs of restructuring have
abated. Going forward, management are introducing a modest
dividend linked to performance. However, Fitch expects FCF margin
to remain steady at about 2% of revenues through to FY19 having
remained positive averaging just over 1% between 2013 and 2016.
Such FCF capability is above rating peers in the 'B' rating
category.

High Seasonality: Working capital is highly seasonal and typically
increases in the first quarter of the company's financial year
(between October and December) when TCG pays its hotels and other
suppliers. Cash balances typically build up in the third and
fourth quarters and are paid out in the first quarter of the
following financial year.

For liquidity calculation Fitch set aside GBP1bn from year-end
cash balances as restricted amount, as this is deemed not freely
available for debt service throughout the year. Fitch expects TCG
to continue to have minimum liquidity headroom of at least
GBP200m, which is consistent with the current ratings.

Commitment to Delever: Fitch forecasts lease-adjusted funds from
operations (FFO) gross leverage will trend towards 4.6x by FYE19
(5.7x at FYE16), which, if materialised, will be more in line with
a 'B+' IDR for the sector. In calculating Fitch-adjusted gross
leverage, Fitch factors in an amount for gross debt over the
financial year, which conservatively takes into account expected
average drawings under the revolving credit facility of up to
GBP200m in the first quarter of each financial year. In addition,
Fitch also exclude GBP542 million related to cash pooling, for
which an equal amount of cash balances were held at FY16.

The positive outlook also reflects the improved financial
flexibility derived from management's intention to reduce fixed-
term debt by GBP300 million by FY18.

DERIVATION SUMMARY

TCG is the second-largest tour operator in the world, behind TUI
AG based on revenues. It is less geographically diverse than TUI,
with group EBITDA margin of 6.6% behind TUI's 7.9%, due to TUI
having a more diverse product base including cruise ships. TCG's
FFO adjusted gross leverage is also about 1.0x higher than TUI,
which has reduced gross debt from asset sales in recent years. No
country ceiling, parent/subsidiary or operating environment
aspects have an impact on the ratings.

KEY ASSUMPTIONS

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

- Low single digit like-for-like revenue growth
- EBIT margin of about 3.8% in FY17, improving towards 4.5% in
   FY19
- Capex between 2.0% and 2.5% of sales
- Dividend payments commencing from FY17 onwards
- FCF margin increasing to 1.7% in FY17 but falling back slightly
   after resumption of dividends
- Early repayment of the 2021 senior notes, part funded by
   additional drawings on the RCF, resulting in lower interest
   payments in future years

RATING SENSITIVITIES

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

- Improved competitiveness evidenced by increasing revenue and
   recovered EBIT margin within its divisions, leading to group
   EBIT margin above 4% on a sustained basis;

- FFO Fixed charge cover of more than 2.0x (FY16: 1.6x) and FFO-
   adjusted gross leverage (based on Fitch-adjusted calculation of
   average gross debt and excluding cash pooling balances)
   sustainably below 5.0x, driven by a combination of improved
   profitability and overall gross debt reduction;

- Positive post-dividend FCF on a sustained basis.

Negative: Future Developments That May, Individually or
Collectively, Lead to the Outlook Reverting Back to Stable
Include:

- Deterioration in the group EBIT margin to below 3.5%,
   reflecting increased competitive pressures;

- Weakening financial flexibility measured as FFO fixed charge
   cover staying below 1.8x, broadly neutral FCF and/or
   liquidity headroom below GBP250 million;

- Increase in FFO-adjusted gross leverage (as adjusted by Fitch)
   above 5.0x.

LIQUIDITY

Adequate Liquidity: At FYE16, TCG had adequate liquidity
comprising GBP212 million of readily available cash (Fitch views
GBP1bn as restricted for seasonal working capital purposes and
also cash pooling balances) and GBP481m undrawn under its
revolving credit facility, comfortably above the minimum threshold
of GBP200 million that Fitch expects TCG to maintain at any given
time. The next material debt maturity is the GBP800 million credit
facility due 2019, for which Fitch expects refinance risk to be
manageable.

Management has stated its intention to reduce fixed-term debt by
GBP300 million by FY18, of which GBP100 million has been repaid so
far, ultimately improving the group's debt maturity profile as
well as reducing interest expense.



                            *********

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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