TCREUR_Public/170316.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

          Thursday, March 16, 2017, Vol. 18, No. 54



AGROKOR DD: Croatian Government Meets with Representatives
HRVATSKA ELEKTROPRIVREDA: Moody's Affirms Ba2 Corp. Family Rating


GOBIKE: Failure to Find New Investors Prompts Bankruptcy


PAROC GROUP: S&P Affirms 'B' Corp. Credit Rating, Outlook Stable


PAPREC HOLDING: Moody's Rates Add'l EUR225MM Sr. Notes B1(LGD 4)
PAPREC HOLDING: S&P Affirms 'B+' CCR, Outlook Remains Stable

* FRANCE: January 2017 Business insolvencies Hit Record Low


AVOCA CLO XII: Fitch Assigns 'B-(EXP)sf' Rating to Cl. F-R Notes
CASTLE PARK: Fitch Affirms 'B-sf' Rating on EUR12MM Class E Notes


DECO 14: Fitch Cuts Rating on EUR100.8MM Class D Notes to Csf


TWOJA SKOK: KNF Regulator Awaits Bids From Banks Until March 28


SINTRA CITY: Moody's Withdraws Ba1 Long-Term FC Issuer Rating


AYT KUTXA I: Fitch Lowers Rating on Class C Notes to 'Bsf'
IM SABADELL 2: S&P Lowers Rating on Class B Notes to B-
LIBERBANK SA: Fitch Rates EUR300MM Subordinated Notes BB-


AKBANK TAS: Fitch Assigns BB Rating to USD500MM Tier 2 Notes
DENIZBANK TAS: Fitch Affirms Long-Term FC IDR Rating to 'BB+'

U N I T E D   K I N G D O M

AMEC FOSTER: Moody's Affirms Ba2 Corporate Family Rating
JULIA'S HOUSE: Set to Close 2 Stores Due to Drop in Footfall
LONGHORNS BBQ: Opts to Close Jesmond Branch Amid CVA Process
RANGERS FOOTBALL: Court to Hear Appeal in Oldco "Big Tax Case"
THRONES 2014-1: S&P Raises Rating on Cl. F-Dfrd Certs. to B+

UPG PLC: 13 Jobs Saved After Accept Cards Was Sold to New Owner



AGROKOR DD: Croatian Government Meets with Representatives
Igor Ilic at Reuters reports that Croatia's government said on
March 14 it had met representatives of local food producer and
retailer Agrokor to discuss efforts to "stabilize its business".

"We have been informed that company is making an effort and
considering various options to stabilize its business.  We want
them to succeed and we will continue closely following the
situation," the government, as cited by Reuters, said in a
statement, without giving any further details.

Moody's and Standard & Poor's recently cut Agrokor's rating on
debt servicing and refinancing risk worries, Reuters relates.
Moody's flagged accounting transparency concerns, Reuters states.

According to Reuters, given Agrokor's size, some analysts say the
government may have to step in, although local media say the
government rejected that scenario.

One option could be the sale of some of Agrokor's profitable
assets, Reuters notes.

Russian banks, such as Sberbank, are among Agrokor's major
creditors and their share of its debt matures in early 2018,
Reuters discloses.

Agrokor has repeatedly said in recent weeks that it will keep
servicing its financial obligations regularly as before, Reuters

At the end of September last year, it had debt of about HRK45
billion against capital of around HRK7.5 billion, Reuters

Zagreb-based Agrokor is the biggest food producer and retailer in
the Balkans, employing almost 60,000 people across the region
with annual revenue of some HRK50 billion (US$7billion).

HRVATSKA ELEKTROPRIVREDA: Moody's Affirms Ba2 Corp. Family Rating
Moody's Investors Service has affirmed the long-term Ba2
corporate family rating (CFR), Ba2-PD probability of default
rating (PDR), and Ba2 senior unsecured ratings of Croatian
national electricity company Hrvatska Elektroprivreda d.d. The
LGD4 assessment of HEP's senior unsecured notes remains
unchanged. The outlook has been changed to stable from negative.

The rating action follows the outlook change to stable from
negative on the Croatian government's Ba2 rating.


The change of outlook on HEP's rating to stable from negative
reflects that the rating is positioned at the same level as
Croatia's sovereign rating. Moody's does not currently envisage
that the rating could be higher than that of the sovereign due to
(1) HEP's strong domestic focus; (2) its 100% ownership by the
Croatian government; and (3) the one notch uplift incorporated
into its rating to reflect the high likelihood, in Moody's view,
of extraordinary support from the government in case of financial
distress at the company, in view of its strategic importance to
the Croatian economy. The stabilisation of the outlook on the
sovereign rating removes the potential downward pressure on HEP's

Given its full ownership by the Government of Croatia, HEP's Ba2
rating incorporates a one-notch uplift from the group's
standalone credit quality, expressed by Moody's as the baseline
credit assessment (BCA) of ba3. The aforementioned uplift
reflects HEP's beneficial relationship with the government, which
has bolstered its ability to access the debt market. In addition,
the government has provided guarantees to support the company's
debt in the past.

HEP's Ba2 CFR continues to reflect (1) its vertically integrated
position in the Croatian electricity market, where the group
enjoys around 85% market share; (2) its electricity generation
mix, with a high share of low cost and low CO2 hydro and nuclear
output; and (3) the group's sound financial profile with low
leverage levels and strong credit metrics.

However, the ratings are significantly constrained by (1) HEP's
lack of diversification in terms of market presence; (2) the
developing profile of the regulatory framework in Croatia, with a
limited track record of transparent and consistent application;
(3) HEP's underlying earnings volatility driven by its dependence
on volatile hydro-based electricity generation; (4) its
considerable investment programme, which includes potential new
generation capacity and investments to upgrade its aging asset
base; and (5) a variable dividend policy.

The rating also reflects the significant financial flexibility
that HEP has at its current rating level, with key ratios of
funds from operations (FFO)/interest cover of 12.9x and FFO/net
debt of 102% for the financial year ending 2015, versus Moody's
guidance of a minimum of 4.0x and 20% respectively.


The rating outlook is stable, in line with that of the sovereign
and reflecting Moody's expectation that HEP will continue to
operate with a business and financial profile commensurate with
the current rating.


Given that the ratings of HEP and the Government of Croatia are
currently aligned, Moody's does not expect any upward rating
pressures in the near term. Nevertheless, HEP's BCA of ba3 could
come under positive pressure through a combination of the
following: (1) increased visibility over the company's ability to
cope in the evolving market environment; (2) an improvement in
the regulatory environment, once Moody's sees evidence of
consistent and transparent application of economic principles to
the business of the group; and (3) maintenance of a low leverage

HEP's earnings remain exposed to a number of factors outside of
management control, most notably domestic rainfall, as well as
commodity and regional power prices. Being the dominant energy
company in the country, HEP is also exposed to a potential loss
of market share in the supply segment as a result of market
liberalisation. Downward pressure could develop if any of these
risks translate into a weakening of HEP's liquidity and/or
financial position, which could be evidenced by credit metrics of
FFO/net debt of less than 20% or FFO interest cover below 4.0x.
In addition, a downgrade of the sovereign rating of Croatia,
would eliminate the one-notch uplift currently applied to HEP's
BCA of ba3.

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

A corporate family rating is an opinion of the HEP group's
ability to honour its financial obligations and is assigned to
HEP as if it had a single class of debt and a single consolidated
legal structure. The Ba2/LGD4 senior unsecured rating of HEP's
outstanding global notes is the same rating level as HEP's CFR,
and reflects the absence of structural and contractual
subordination of the global note creditors to the claims of other
HEP group lenders.

Headquartered in Zagreb, Croatia, HEP is the holding company for
Croatia's incumbent vertically-integrated utility group. HEP
operates across three main segments: (i) electricity generation,
transmission, distribution and supply; (ii) district heating
generation, distribution and supply; as well as (iii) natural gas
distribution and supply. In accordance with the EC Third Energy
Package, HEP unbundled its electricity transmission operations
under the "independent transmission operator" model. The legally
and operationally separate subsidiary, HOPS d.o.o., is part of
the consolidated group. In the twelve month period ended 30 June
2016, around 83% of sales and almost all of EBITDA within HEP
group was derived from electricity activities.


GOBIKE: Failure to Find New Investors Prompts Bankruptcy
Lucie Rychla at The Copenhagen Post, citing Berlingske Business,
reports that GoBike, which provides the white electric- driven
bicycles for Copenhagen's city bike program, has gone bankrupt
after attempts to find new investors fell through.

According to The Copenhagen Post, GoBike chair Nils Erik Nielsen
said there was no interest from potential investors in saving the
company once its main partner, the City and Commuter Bike
Foundation, backed out of ongoing negotiations.

On March 1, the financially-stricken GoBike went into
receivership, but the City and Commuter Bike Foundation refused
to take over the company because of its dire financial situation,
The Copenhagen Post relates.


PAROC GROUP: S&P Affirms 'B' Corp. Credit Rating, Outlook Stable
S&P Global Ratings said it has affirmed its 'B' long-term
corporate credit rating on Finland-based stone wool insulation
materials provider Paroc Group Oy.  The outlook is stable.

S&P also affirmed its 'B' issue rating on the group's existing
EUR426 million senior secured notes.  The recovery rating on
these debt instruments is '4'.  S&P will withdraw these ratings
once the notes are repaid.

Finally, S&P assigned its 'B' issue rating to the group's
proposed new EUR435 million term loan B.  The recovery rating on
the proposed instrument is '4', indicating S&P's expectation of
average recovery prospects (30%-50%, rounded estimate 45%).

Paroc plans to issue a new EUR435 million term loan B and apply
the proceeds to refinance its existing EUR426 million senior
secured notes.  Paroc will also issue a new EUR70 million
revolving credit facility (RCF) -- ranking pari passu to the
proposed new term loan B -- to replace its existing EUR80 million
RCF (which ranks super senior to the existing EUR426 million
senior secured notes).  In terms of the amount of gross debt,
this refinancing is broadly like for like, and is being
undertaken with the primary goal of lowering the group's interest
cost and offering more flexibility.

At the same time, Paroc intends to pay a one-off dividend of
EUR54.1 million to its sponsor CVC.  Paroc had earmarked this
cash in order to cover a potential obligation that may arise as a
result of an ongoing dispute with the Finnish tax authorities
regarding transfer pricing in previous fiscal years.  However, as
part of the refinancing, Paroc will now pay the EUR54.1 million
to its financial sponsor.  CVC has agreed with Paroc that, should
the Finnish courts rule in favor of the tax authorities, CVC will
contribute to any future potential obligation arising from this
dispute for an amount up to EUR54.1 million.  Final resolution of
the dispute is expected during 2018.

In terms of trading performance, for the past two-to-three years,
Paroc has experienced tough market conditions in Russia, Finland,
and the Baltics.  Its sensitivity to unfavorable exchange rate
swings -- specifically the depreciation of the Russian ruble,
Norwegian krone, and Swedish krona against the euro -- has
dampened revenue growth over this period.

Despite these headwinds, management has been quick to take
action -- for example, postponing the opening of a second line at
Tver, reducing capital expenditure (capex), and disposing of the
Panels business -- and closed some plants and efficiently
reallocated capacity.  The cost base has been closely managed and
margins gradually strengthened.  Paroc also continues to benefit
from healthy demand in Sweden and positive growth in Western and
Eastern Europe.  S&P predicts that these market trends will
persist through 2017 and that, overall, the company's
consolidated top-line growth will be in the low-single-digit

Paroc has a strong position in the Nordic countries and Baltic
region, as well as a growing presence in Russia.  Paroc benefits
from relatively high barriers to entry, partly owing to its
strong brand recognition and vertical integration.  Tempering
these strengths is the group's limited product and geographic
diversification.  Paroc is exposed to cyclical construction end
markets, which can result in volatile demand for the group's
products.  Indeed, Paroc has exhibited high volatility of
absolute EBITDA in the past and the potential for high volatility
in the future, especially if the group's efforts to aggressively
expand the business meet a sudden drop in demand.

S&P's base case for Paroc in fiscal 2017 assumes:

   -- Revenues growing by about 4% annually, supported by
      continued macroeconomic recovery and a rise in demand for
      Paroc's products in its core markets;

   -- Gradual improvement in the EBITDA margin toward 21%, as
      management continues to optimize the cost base;

   -- Adjusted funds from operations (FFO) of about EUR55
      million, continuing a trend of good cash flow generation;

   -- Capex of up to EUR25 million;

   -- No major acquisitions or divestitures; and

   -- A one-off dividend of EUR54.5 million to be paid to CVC in

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

   -- Debt to EBITDA of about 7x (including shareholder loans or
      about 5.6x excluding shareholder loans);

   -- FFO to debt of about 6%-8% (including shareholder loans or
      8%-9% excluding shareholder loans); and

   -- FFO cash interest coverage of more than 2x over the 12-
      month rating horizon.

The stable outlook on Paroc reflects S&P's expectation that the
group will be able to maintain its margins over the 12-month
rating horizon despite foreign currency headwinds and investments
over the same period to meet anticipated growth in demand.  S&P
forecasts that the group's S&P Global Ratings-adjusted debt to
EBITDA, including shareholder loans, will be about 7x in 2017 and
that FFO cash interest coverage will remain more than 2x.

S&P could lower the ratings if Paroc experienced severe price or
margin pressure, or poorer cash flows, leading to weaker credit
metrics -- specifically, if FFO cash interest cover fell below
2x. This could occur if the group suffered from persistent
detrimental foreign-exchange movements or if it failed to curtail
its capex in time to reduce debt, before a potential drop in
earnings.  A downgrade could also stem from debt-funded
acquisitions or increased shareholder returns.

S&P currently views the probability of an upgrade as limited over
its 12-month rating horizon.  This reflects Paroc's high leverage
and limited prospects for deleveraging over this timeframe.
Uncertainties remain regarding the possibility of shareholder
returns, as well as changes to the group's capex, acquisition,
and disposal strategy driven by the group's private equity owner.


PAPREC HOLDING: Moody's Rates Add'l EUR225MM Sr. Notes B1(LGD 4)
Moody's Investors Service has assigned a B1(LGD 4) rating to the
additional EUR225 million worth of Senior Secured notes due 2022
to be issued by French recycling company Paprec Holding, which
will be used to fund the acquisition of Coved (unrated), a French
waste management company. At the same time, the agency has
affirmed Paprec's B1 corporate family rating (CFR), the Ba3-PD
probability of default rating (PDR), as well as the B1 rating
assigned to the existing EUR295 million worth of senior secured
notes due 2022 and the B2 rating assigned to the EUR185 million
worth of senior subordinated notes due 2023. The outlook for all
ratings is stable.

The action reflects Moody's views that the integration of Coved
will be a good strategic fit which will improve Paprec's business
diversification and scale in the industry" says Guillaume Leglise
a Moody's Analyst and lead analyst for the issuer. "The
transaction will mechanically reduce Paprec's leverage, despite
being fully debt-funded and carrying some execution risks, and
the expected synergies look achievable thus supporting
deleveraging in the next 12 months" add Mr LÇglise.


The affirmation of Paprec's CFR at B1 reflects Moody's view that
the acquisition of Coved will enhance the company's scale and
business mix and diversification towards municipal waste
management services. Coved, a subsidiary of French water company
SAUR (unrated), is a national waste management generalist company
with established market positions along the waste management
value chain and with a strong focus on French municipalities. In
the 12 months to 31 December 2016 Coved reported revenues and
EBITDA (as adjusted by the company) of EUR348 million and EUR41
million respectively.

Moody's believes the acquisition of Coved would reduce Paprec's
reliance on waste services to industrial and commercial
customers. Coved's municipal waste management activities present
a lower risk profile and will enhance Paprec's revenues stability
and visibility owing to the typical medium term nature of the
contracts. Although the expected synergies will only contribute
marginally to EBITDA growth of Paprec in the first year, they
look achievable.

Moody's nevertheless cautions that this large transaction entails
some execution risks, notably with regards the integration of the
complex landfilling activities, which are subject to regulatory
scrutiny. However Moody's believes that the integration of
Coved's landfill capacities (current utilization rates estimated
at 84% by Paprec) will allow Paprec to be less reliant on
competitors' landfills to dispose additional waste volume, which
will ultimately translate into cost savings.

Following the proposed acquisition financing and Coved
consolidation, Paprec's leverage will mechanically decrease
reflecting the attractive purchase price multiple of the
acquisition. Pro forma of the transaction and before synergies,
Moody's estimates that the company's leverage ratio (defined as
gross Debt/EBITDA with Moody's adjustments) will stand at around
5.6x at end-2016, compared to an estimated 5.9x for Paprec on a
standalone basis in 2016.

Paprec's credit metrics are currently weak for the rating
category, owing to its highly leveraged capital structure and
structurally weak coverage ratios. Its gross leverage ratio (as
adjusted by Moody's) was consistently above 5.5x in the last two
years, a level which corresponds to Moody's parameters to
maintain the current B1 rating. However, with the integration of
Coved, the release of synergies and the continued improvement in
Paprec standalone profitability owing to a ramp up in volumes and
revenues derived from recent commercial wins, Moody's expects
Paprec will deleverage towards 5.0x in the next 12 to 18 months,
a level deemed more commensurate with its rating category and
business risk profile.

Proforma for the proposed transaction, Paprec will present an
adequate liquidity profile with around EUR91 million of cash on
balance sheet. Paprec also benefits from an undrawn EUR100
million covenanted revolving credit facility (RCF, unrated),
which was only drawn occasionally in the past. Moody's assessment
of Paprec's liquidity also factors in an expected moderate
positive free cash flow in the next 12 to 18 months, after
maintenance capex requirements, additional capex development
anticipated for Coved, and even when assuming continued
investments in small bolt-on acquisitions, as seen in the past.


The outlook on Paprec's ratings is stable and reflects Moody's
expectations that the company will improve its financial profile
during 2017. Moody's expects the continuing growth of recycled
waste volumes to increase the company's capacity usage and
improve its profitability. The integration of Coved and Paprec's
high operating leverage will enable the group to reach a more
comfortable level of leverage by the end of 2017, with a Moody's-
adjusted gross debt/EBITDA trending below 5.5x as it increases
the capacity utilization of its processing and recycling sites.


Upward pressure on Paprec's B1 CFR could develop if leverage
(i.e., gross debt/EBITDA including Moody's adjustments) reduces
towards 4.5x and EBIT/interest expense increases towards 2x. At
the same time, Moody's would expect the group to maintain a
positive free cash flow generation and an adequate liquidity

Downward pressure on Paprec's B1 CFR could develop if leverage
does not reduce below 5.5x in 2017; if free cash flow generation
turns negative over a prolonged period of time; or if its
liquidity profile weakens.


The principal methodology used in these ratings was Environmental
Services and Waste Management Companies published in June 2014.

Headquartered in Paris, France, Paprec is a pure-play integrated
recycling company, mainly focused on the collection and
transformation of non-hazardous waste from private and municipal
entities, which are sold as secondary raw materials. During
FY2016, the company reported revenues of EUR950 million and
EBITDA of EUR105.4 million. Paprec was founded in 1984 and bought
in 1994 by Jean-Luc Petithuguenin, who remains the current CEO of
the company. Mr Petithuguenin is also the majority shareholder
with 57% of the share capital, the rest being owned by BPI France
Participation (33.5%), the investment-bank arm of French State,
and a consortium of French banks and institutional shareholders

PAPREC HOLDING: S&P Affirms 'B+' CCR, Outlook Remains Stable
S&P Global Ratings affirmed its 'B+' corporate credit rating on
France-based waste recycling company Paprec Holding.  The outlook
remains stable.

At the same time, S&P affirmed its 'B+' issue rating on the
group's senior secured notes, including the proposed
EUR225 million tap on the existing debt with same terms and
conditions.  The '3' recovery rating indicates S&P's expectation
of meaningful (50%-70%; rounded estimate 60%) recovery prospects
in the event of default.  S&P also affirmed its 'BB' issue rating
on Paprec's EUR100 million super senior revolving credit facility
(RCF).  The '1' recovery rating indicates very high (90%-100%;
rounded estimate 95%) recovery in the event of default.  In
addition, S&P affirmed its 'B-' issue rating on the company's
EUR185 million senior subordinated notes.  The '6' recovery
rating on these notes indicates negligible (0%-10%; rounded
estimate 0%) recovery prospects in the event of default.

The affirmation follows Paprec's recent announcement that it
intends to issue EUR225 million of senior secured notes to
finance the acquisition of France-based waste management services
company Coved and cover the related fees.  Paprec already
received work council validation.  S&P notes, however, that the
closing of the acquisition is still subject to the receipt of
competition authority approval.

S&P believes that the acquisition will further improve the
group's market share and scale.  Following the acquisition,
Paprec expects to handle close to 10 million tons of waste per
year and increase its combined pro forma 2017 revenues to more
than EUR1.3 billion and EBITDA to EUR150 million, against about
EUR950 million and EUR104 million at end-2016.  Furthermore, S&P
assumes that Coved's network of waste sorting centers, waste
collection depots, and landfills will enhance Paprec's national
coverage.  In S&P's view, the acquisition will strengthen the
group's customer diversity because it understands that Coved is
focused more on public customers, while Paprec mainly addresses
private markets.  This will likely add stability to the operating
performance, in S&P's opinion, as it provides visibility, given
that public customers engage in longer-term contracts than
private customers.  Finally, S&P expects the group will derive
some cost synergies from management fees to water company SAUR
that will no longer be paid, the use of spare capacity at Coved's
landfills, and the consolidation of office networks, among other
savings.  S&P also notes Paprec's recent, somewhat weaker,
operating performance, marked by a slight decline of the adjusted
EBITDA margin to about 11.1% as of Dec. 31, 2016, from 11.8% as
of Dec. 31, 2015.  S&P expects that adjusted EBITDA margin for
the combined group will remain at about 12%-13%.  Nevertheless,
S&P don't rule out substantial integration risks, given that the
Coved acquisition is the largest Paprec has ever undertaken.

S&P's overall assessment of Paprec's creditworthiness remains
constrained by the group's highly leveraged financial risk
profile, with estimated adjusted debt to EBITDA at about 6.0x at
end-2017, improving to 5.0x-5.5x in 2018, thanks to better
absorption of the fixed-cost base and the roll-out of synergies,
as per S&P's base case.  S&P expects the group will continue to
generate positive free operating cash flow (FOCF), after capital
expenditures (capex) funded through financial leases, of about
EUR30 million over the next two years, when considering cash
capex of about EUR40 million-EUR45 million and capex funded
through financial leases of about EUR60 million per year.
Finally, cash coverage metrics will remain solid at more than
2.5x, which is in line with the current rating.

The stable outlook reflects S&P's view that Paprec's EBITDA will
gradually improve, thanks to organic growth--owing to new
contracts signed and a favorable mix of provided services--and
synergies following the Coved acquisition.  S&P considers
adjusted leverage of 5.0x-6.0x and cash interest coverage
sustainably above 2.5x to be commensurate with the current

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

As S&P do not anticipate substantial deleveraging of the group's
balance sheet over the next 12 months, the potential for a
positive rating action is remote.  That said, S&P could upgrade
Paprec if EBITDA generation was greater than anticipated, leading
to total debt to EBITDA sustainably below 4.5x.

* FRANCE: January 2017 Business insolvencies Hit Record Low
Creditman on March 14 disclosed that January 2017 saw the drop in
insolvencies, which started in May 2014, reach 58,031 -- its
lowest figure since September 2012 (-2.8% on the same period in

At the start of 2017 one company in 72 was failing on average
over the course of the year (one in 56 in 2011).

The trend is expected to continue. Coface forecasts a further 1%
slide in insolvencies in 2017 against 2016.

The Coface model takes account of the predicted growth in GDP and
company margins).  More good news is that the number of employees
caught up in company insolvencies has fallen 2.6% (to 179,619).

The number of new companies rose 9.8% over the year (331,239,
excluding autoentrepreneurs).  This is another indication of
company dynamism and has almost returned the figure to pre-crisis
levels (340,686 foundations in August 2008).  However, more new
companies will also mean a negative secondary impact of more
insolvencies.  Three companies in ten fail in their first three
years according to INSEE.


AVOCA CLO XII: Fitch Assigns 'B-(EXP)sf' Rating to Cl. F-R Notes
Fitch Ratings has assigned Avoca CLO XII DAC refinanced notes
expected ratings:

EUR2m Class X notes: 'AAA(EXP)sf': Outlook Stable
EUR190m Class A-1R notes: 'AAA(EXP)sf'; Outlook Stable
EUR50m Class A-2R notes: 'AAA(EXP)sf'; Outlook Stable
EUR53m Class B-R notes: 'AA(EXP)sf'; Outlook Stable
EUR22m Class C-R notes: 'A(EXP)sf'; Outlook Stable
EUR22m Class D-R notes: 'BBB(EXP)sf'; Outlook Stable
EUR23m Class E-R notes: 'BB(EXP)sf'; Outlook Stable
EUR10m Class F-R notes: 'B-(EXP)sf'; Outlook Stable

Avoca XLO XII DAC is an arbitrage cash flow CLO that closed in
September 2014. The notes will be fully redeemed on April 4,
2017, and new notes will be issued (refinancing). The proceeds of
this issuance will be used to redeem the old notes. The
refinanced CLO will envisage a further four-year reinvestment
period with a new identified portfolio and at the target par
amount of EUR400m.

The portfolio will mainly comprise the assets currently in the
existing portfolio, as modified by sales and purchases made by
the manager until the effective date in June 2017. The portfolio
is managed by KKR Credit Advisors (Ireland).


'B+/B' Portfolio Credit Quality
Fitch assesses the average credit quality of obligors in the
'B'/'B+' range. The agency has public ratings or credit opinions
on all the obligors in the current portfolio (outstanding
portfolio at the latest payment date). The weighted average
rating factor of the outstanding portfolio at the latest payment
date is 30.7.

High Expected Recoveries
At least 90% of the portfolio will comprise senior secured loans
and bonds. The weighted average recovery rate of the outstanding
portfolio at the latest payment date is 70.8%.

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

Limited Interest Rate Risk Exposure
Between 0% and 5% of the portfolio can be invested in fixed-rate
assets, while all the liabilities pay a floating-rate coupon.
Fitch modelled both 0% and 5% fixed-rate buckets and found that
the rated notes can withstand the interest rate mismatch
associated with each scenario.

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

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


Both a 25% increase in the obligor default probability and a 25%
reduction in expected recovery rate could lead to a downgrade of
up to one full category for the rated notes.

CASTLE PARK: Fitch Affirms 'B-sf' Rating on EUR12MM Class E Notes
Fitch Ratings has assigned Castle Park CLO's refinancing notes
final ratings and affirmed the others:

EUR238m Class A-1 notes: 'AAAsf'; Outlook Stable
EUR32m Class A-2A notes: 'AAsf'; Outlook Stable
EUR15m Class A-2B notes: 'AAsf'; Outlook Stable
EUR23m Class B notes: 'Asf'; Outlook Stable
EUR23m Class C notes: 'BBBsf'; Outlook Stable
EUR26m Class D notes: affirmed at 'BBsf'; Outlook Stable
EUR12m Class E notes: affirmed at 'B-sf'; Outlook Stable
EUR46m Subordinated Notes: not rated

The transaction is a cash flow collateralised loan obligation
securitising a portfolio of mainly European leveraged loans and
bonds. The portfolio is managed by Blackstone/GSO Debt Funds
Management Europe Limited.


Castle Park CLO Designated Activity Company closed in December
2014 and is still in in its reinvestment period, which is set to
expire in January 2019. The issuer has issued new notes to
refinance part of the original liabilities. The refinanced notes
have been redeemed in full as a consequence of the refinancing.

The refinancing notes bear interest at a lower margin over
EURIBOR than the notes being refinanced. The remaining terms and
conditions of the refinancing notes (including seniority) are the
same as the refinanced notes.

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

The transaction remains within the reinvestment period and as a
result the ratings are subject to Fitch's collateral quality
tests. The affirmation of the junior notes therefore reflects
Fitch's judgement that the current portfolio outperforms a stress
case based on Fitch's covenants. The recovery prospects of the
portfolio have fallen, with the current trustee reported weighted
average recovery rate equal to 66.5%, 2.7% lower than 12 months
previous. However, the transaction maintains a 1.5% cushion over
the minimum covenant of 65%. The portfolio is also of lower
credit quality with a current trustee reported weighted average
rating factor of 33.4, 0.69 points higher than 12 months previous
but remains 1.1 points below the maximum covenant of 34.5.


As the loss rates for the current portfolio are below those
modelled for the stress portfolio, the sensitivities shown in the
new issue report still apply.


DECO 14: Fitch Cuts Rating on EUR100.8MM Class D Notes to Csf
Fitch Ratings has upgraded DECO 14 - Pan Europe 5 B.V.'s (DECO
14) class C floating rate notes due 2020 and downgraded the class
D notes:

EUR35.3m class C (XS0291365566) upgraded to 'B+sf' from 'Bsf';
Outlook Stable
EUR100.8m class D (XS0291367182) downgraded to 'Csf' from 'CCsf';
Recovery Estimate (RE) revised to 35% from 30%
EUR25.8m class E (XS0291367422) affirmed at 'Csf'; RE 0%
EUR11.9m class F (XS0291368156) affirmed at 'Csf'; RE 0%


The upgrade reflects the significant redemption of the class C
notes (following the repayment of the more senior class A2, A3
and B notes) since the last rating action in March 2016. In
addition to the refinancing of the EUR90.9m Armilla Clarice 2
loan, 27 properties securing the defaulted Tambelle CGG, Arcadia
and Mansford Nord Bayern have been sold, with recoveries
moderately outperforming Fitch's 2016 expectations. However, the
complex resolution of the Cottbus loan, which is subject to
ongoing negotiations with the main tenant, limits scope for
further upgrade at this stage.

At the same time, Fitch believes that the EUR100.8m class D notes
can no longer avoid loss following sale of the 11 remaining
assets. This is reflected in their downgrade to 'Csf'. However,
the marginally increased recovery estimate acknowledges the
higher than expected recoveries on Mansford Nord Bayern.

The EUR66.4m CGG- Tambelle REDO 3 has repaid by EUR23.6m over the
last 12 months, predominantly from the sale of five assets. This
is despite being in preliminary insolvency proceedings. The
remaining collateral is 75% let on short leases, with a 2014
valuation placing the loan-to-value ratio (LTV) at 154.7%. Five
of the last eight assets have been notarised for sale for
EUR20.4m and the others are being marketed. Fitch expects a
significant loss, although the increased sales activity is
positive and the loan is expected to be the main contributor
towards repaying the class C notes.

15 assets securing the EUR84.6m Arcadia loan have been sold since
the last rating action (11 sales had been notarised already by
March 2016). The sales were therefore in line with expectations.
The proceeds of three sold properties are held in notary accounts
while a land charge relating to these sales is being removed,
which may take more than 1.5 years. Depending on the timing of
release of notarised amounts (and the last two asset sales),
Fitch estimates that around 10% of the remaining balance may be

The EUR39.3m Cottbus Shopping Centre loan defaulted at its
maturity in January 2015. A subsequent revaluation of the
collateral -- a retail warehouse/ shopping centre predominantly
let to Kaufland -- placed the LTV at 215%. The tenant has sublet
around one third of its space. A restructuring of Kaufland's
lease (which will also see the subleases directly assigned to the
landlord) remains pending as the tenant has requested
refurbishment works prior to signing an agreement. EUR3.3m of
funds has been escrowed for capex as of January 2017.

There may be therefore by further delays liquidating the
collateral, given the ongoing negotiations and building works
underway. However, in terms of eventual recoveries this is a
positive development, with a consensual sale targeted once all
works have been completed. Fitch expects an ultimate loss on the


Further redemptions may lead to an upgrade of the class C notes.
Evidence of significant enhancement in asset value of the Cottbus
Shopping Centre could result in an improved RE for class D.
Realisation of losses at the bottom of the capital structure will
lead to downgrades.

Fitch estimates 'Bsf' proceeds of EUR70m.


TWOJA SKOK: KNF Regulator Awaits Bids From Banks Until March 28
Maciej Martewicz at Bloomberg News reports that the KNF regulator
said in an emailed statement it is waiting for bids from banks to
buy Twoja SKOK credit union until March 28.

Twoja SKOK credit union is based in Poland.


SINTRA CITY: Moody's Withdraws Ba1 Long-Term FC Issuer Rating
Moody's Investors Service has withdrawn City of Sintra's Ba1 long
term foreign currency issuer rating. Prior to withdrawal, the
rating carried stable outlook.


Moody's has withdrawn the rating for its own business reasons.

The withdrawal of the rating required the publication of this
credit rating action on a date that deviates from the previously
scheduled release date in the sovereign release calendar,
published on


AYT KUTXA I: Fitch Lowers Rating on Class C Notes to 'Bsf'
Fitch Ratings has downgraded AyT Kutxa Hipotecario I, FTA's class
C notes and affirmed the remaining notes. It has also affirmed
AyT Kutxa Hipotecario II, FTA:

AyT Kutxa Hipotecario I
Class A (ES0370153001) affirmed at 'AA+sf'; Outlook Stable
Class B (ES0370153019) affirmed at 'Asf'; Outlook Stable
Class C (ES0370153027) downgraded to 'Bsf' from 'BBBsf'; Outlook

AyT Kutxa Hipotecario II
Class A (ES0370154009) affirmed at 'Asf'; off Rating Watch
Negative (RWN); Outlook Stable
Class B (ES0370154017) affirmed at 'BBsf'; off RWN; Outlook
Class C (ES0370154025) affirmed at 'CCCsf'; revised Recovery
Estimate (RE) to 45% from 65%

AyT Kutxa Hipotecario I and II are Spanish RMBS transactions of
residential mortgages originated and serviced by Kutxabank, SA


Decreasing Excess Spread
The downgrade of AyT Hipotecario I's class C notes reflects the
notes' sensitivity to the decreasing excess spread trends over
the past years, combined with low credit enhancement that is
insufficient to support the previous rating in Fitch's stress
scenarios. The transaction features a swap, paying Euribor plus a
margin of 50bps in return for receiving interest paid by the
borrowers, which is insufficient to cover stressed fees and
interest on the class C notes.

Portfolio Credit Trends
As of December 2016, Kutxa Hipotecario II's cumulative gross
defaults remained above the average for Spain of 5.6%, at 6.05%
of the original balance, up from 5.9% in January 2016. In
contrast, Kutxa Hipotecario I's cumulative gross defaults have
remained stable and significantly below the average for Spanish
RMBS transactions at 0.62%, up from 0.55% at the last review.

Fitch expects gross cumulative defaults to remain stable for both
transactions, as the current arrears pipeline shows a downward
trend. However, Fitch understand from Kuxtabank that it intends
to repurchase defaulted assets, a practice that Fitch considers
is not sustainable in times of stress and consequently is not
factored in by the agency when estimating recovery expectations.

Arrears over 90 days also track the Spanish average, which has
been decreasing since peaking in 2013. Kutxa Hipotecario II's 90+
days arrears have decreased to 0.61% from over 1% in January
2016, versus an average of 0.89% for Spanish RMBS rated by Fitch.
Kutxa Hipotecario I's 90+ days arrears are currently 0% of the
outstanding portfolio balance, compared with 0.26% at the last
review in March 2016.

Commingling Exposure
Fitch believes the transactions are exposed to a commingling loss
of around 50% of the monthly collections in the event of default
of the collection account bank. This is based on information
provided by the servicer regarding borrower payment distribution,
which indicates payments are concentrated on a few dates of every
month. The agency has captured this additional stress in its

Restructured Loan Exposure
The RWN on AyT Kutxa Hipotecario II was due to insufficient
information on restructured loans. Fitch has received updated
information and have found that 2.4% of the current portfolio has
been subject to maturity extensions. Fitch believes that this
could indicate that the loans subject to maturity extensions may
be of worse credit quality. In accordance with its criteria,
Fitch has analysed when these loans were last in arrears and has
applied additional stresses if loans have been in arrears over
the past four years. The exposure to maturity extensions in Kutxa
Hipotecario I is 2.5% of the current portfolio.

A worsening of the Spanish macroeconomic environment, especially
employment conditions or an abrupt shift of interest rates could
jeopardise the underlying borrowers' affordability.

AyT Hipotecario I's class A notes are sensitive to changes in
Spain's Country Ceiling of 'AA+' and consequently changes to the
highest achievable 'AA+sf' rating for Spanish structured finance

IM SABADELL 2: S&P Lowers Rating on Class B Notes to B-
S&P Global Ratings lowered and removed from CreditWatch negative
its credit ratings on IM Sabadell RMBS 2, Fondo de Titulizacion
de Activos' class A and B notes.  At the same time, S&P has
affirmed and removed from CreditWatch negative its 'B- (sf)'
rating on the class C notes.

The rating actions follow S&P's credit and cash flow analysis of
the most recent transaction information that it has received as
of the January 2017 investor report.  S&P's analysis reflects the
application of its European residential loans criteria and its
current counterparty criteria.

On Jan. 25, 2017, S&P placed on CreditWatch negative its ratings
in this transaction following the renegotiation of interest rates
for a significant portion of the loans in the collateral.  Since
May 2016, Banco de Sabadell S.A., acting as servicer, has
renegotiated the interest rates of the mortgage loans to fixed
rates from floating rates.  At closing, loans referenced to fixed
rates represented only 2.23% of the mortgage loans.  According to
the most recent trustee report, loans referenced to fixed rates
now represent 25.03% of the collateral pool.

Under the transaction documents, there is no limit on the
percentage of loans in the pool that can be subject to interest
rate renegotiation.  The only limitation, as long as the
renegotiation is in line with the servicer's standard market
practice, is that the weighted-average margin on the loans in the
pool referenced to floating rates cannot be lower than 0.50%.

Following the February 2016 restructuring, the transaction no
longer benefits from an interest swap.  With a significant
portion of the portfolio now paying fixed interest rates, the
mismatch between the assets and liabilities is now higher than
what S&P previously assumed.  Consequently, the transaction is
exposed to higher interest rate risk in S&P's high interest rate
scenarios in its cash flow analysis, which has negatively
affected its ratings in this transaction.

The class B and C notes have interest deferral triggers, which
are based on cumulative defaults as a proportion of the original
collateral balance.  Cumulative defaults currently represent
1.98% of the original collateral balance, compared with trigger
levels of 6.0% and 4.0% for the class B and C notes,
respectively. Therefore, the transaction has not breached the
triggers, and S&P don't expect it to breach them in the near

Since S&P's previous review, available credit enhancement has
remained constant for all classes of notes, as they are currently
amortizing pro rata, and the reserve fund, representing 4% of the
outstanding balance of the mortgage assets, is amortizing.

Severe delinquencies of more than 90 days, at 0.19%, are on
average lower for this transaction than our Spanish residential
mortgage-backed securities (RMBS) index.  Defaults are defined as
mortgage loans in arrears for more than 12 months in this
transaction.  Cumulative defaults, at 1.98%, are also lower than
in other Spanish RMBS transactions that S&P rates.  Prepayment
levels remain low and the transaction is unlikely to pay down
significantly in the near term, in S&P's opinion.

S&P's credit and cash flow analysis indicates that the class A
notes have sufficient credit enhancement to withstand the
stresses commensurate with a 'BB+' rating under our European
residential loans criteria.  S&P has therefore lowered to 'BB+
(sf)' from 'A (sf)' and removed from CreditWatch negative its
rating on the class A notes.

S&P's cash flow analysis at the 'B' rating level shows that the
class B and C notes would not experience interest shortfalls in
the next 12 months.  Given current levels of credit enhancement
for these classes, along with improving asset performance and the
current low interest rate environment, S&P do not believe these
notes are currently vulnerable to nonpayment.  Under S&P's
criteria for assigning 'CCC' category ratings, an obligation
rated in this category is typically vulnerable to nonpayment and
is expected to default within 12 months.  Therefore, in line with
S&P's criteria, it has lowered to 'B- (sf)' from 'BB+ (sf)' and
removed from CreditWatch negative its rating on the class B notes
and affirmed and removed from CreditWatch negative S&P's 'B-
(sf)' rating on the class C notes.

The collection account is held with Banco de Sabadell
(BB+/Positive/B) in the name of the servicer.  As a consequence,
the transaction is exposed to commingling risk.  However, since
S&P's ratings in this transaction are at or below the rating on
the servicer, S&P has not stressed commingling loss in its cash
flow analysis in line with S&P's current counterparty criteria.
Consequently, the ratings on the notes are weak-linked to the
issuer credit rating on Banco Sabadell.

S&P also considers credit stability in its analysis.  To reflect
moderate stress conditions, S&P adjusted its weighted-average
foreclosure (WAFF) assumptions by assuming additional arrears of
8% for one- and three-year horizons.  This did not result in
S&P's rating deteriorating below the maximum projected
deterioration that it would associate with each relevant rating
level, as outlined in its credit stability criteria.

In S&P's opinion, the outlook for the Spanish residential
mortgage and real estate market is not benign and it has
therefore increased its expected 'B' foreclosure frequency
assumption to 3.33% from 2.00%, when S&P applies its European
residential loans criteria, to reflect this view.  S&P bases
these assumptions on its expectation of modest economic growth
and continuing high unemployment.

IM Sabadell RMBS 2 is a Spanish RMBS transaction that closed in
June 2008.  It securitizes a pool of first-ranking mortgage loans
that Banco de Sabadell originated.


Class              Rating
            To                 From

IM Sabadell RMBS 2, Fondo de Titulizacion de Activos
EUR1.4 Billion Residential Mortgage-Backed Floating-Rate Notes

Ratings Lowered And Removed From CreditWatch Negative

A           BB+ (sf)           A (sf)/Watch Neg
B           B- (sf)            BB+ (sf)/Watch Neg

Rating Affirmed And Removed From CreditWatch Negative

C           B- (sf)            B- (sf)/Watch Neg

LIBERBANK SA: Fitch Rates EUR300MM Subordinated Notes BB-
Fitch Ratings has assigned Liberbank S.A.'s issue of EUR300
million subordinated notes due 2027 a final rating of 'BB-'.

The final rating is in line with the expected rating Fitch
assigned to the notes on March 7, 2017.


The subordinated notes are notched down once from Liberbank's
'bb' Viability Rating (VR). The notching reflects the notes'
greater expected loss severity than senior unsecured debt. These
securities are subordinated to all senior unsecured creditors.
Fitch did not apply additional notching for incremental non-
performance risk relative to the VR given that any loss
absorption would only occur once the bank reaches the point of


The subordinated notes' rating is sensitive to changes in
Liberbank's VR. The rating is also sensitive to a widening of
notching if Fitch views that the the probability of non-
performance on the bank's subordinated debt relative to the
probability of the group failing, as measured by its VR, has
increased or if Fitch's view of recovery prospects changes.


AKBANK TAS: Fitch Assigns BB Rating to USD500MM Tier 2 Notes
Fitch Ratings has assigned Akbank T.A.S.'s (BB+/Stable/bb+)
USD500 million issue of Basel III-compliant Tier 2 capital notes
due 2027 a final rating of 'BB'.

The final rating is the same as the expected rating assigned on 6
March 2017.

The notes qualify as Basel III-compliant Tier 2 instruments and
contain contractual loss absorption features, which will be
triggered at the point of non-viability of the bank. According to
the terms, the notes are subject to permanent partial or full
write-down upon the occurrence of a non-viability event (NVE).
There are no equity conversion provisions in the terms.

An NVE is defined as occurring when the bank has incurred losses
and has become, or is likely to become, non-viable as determined
by the local regulator, the Banking and Regulatory Supervision
Authority (BRSA). The bank will be deemed non-viable when it
reaches the point at which either the BRSA determines that its
operating license is to be revoked and the bank liquidated, or
the rights of Akbank's shareholders (except to dividends), and
the management and supervision of the bank, should be transferred
to the Savings Deposit Insurance Fund on the condition that
losses are deducted from the capital of existing shareholders.

The notes have a 10-year maturity and a call option after five

The notes are rated one notch below Akbank's Viability Rating
(VR) of 'bb+' in accordance with Fitch's "Global Bank Rating
Criteria". The notching includes zero notches for incremental
non-performance risk relative to the VR and one notch for loss

Fitch has applied zero notches for incremental non-performance
risk, as the agency believes that write-down of the notes will
only occur once the point of non-viability is reached and there
is no coupon flexibility prior to non-viability.

The one notch for loss severity reflects Fitch's view of below-
average recovery prospects for the notes in case of an NVE. Fitch
has applied one notch, rather than two, for loss severity, as
partial, and not solely full, write-down of the notes is
possible. In Fitch's view, some uncertainty exists over the
extent of losses the notes would face in case of an NVE, given
that this would be dependent on the size of the operating losses
incurred by the bank and any measures taken by the authorities to
help restore the bank's viability.


As the notes are notched down from Akbank's VR, their rating is
sensitive to a change in this rating. The notes' rating is also
sensitive to a change in notching due to a revision in Fitch's
assessment of the probability of the notes' non-performance risk
relative to the risk captured in Akbank's VR, or in the agency's
assessment of loss severity in case of non-performance.

Akbank's ratings are:

- Long-Term Foreign Currency (FC) and Local Currency (LC) IDRs
   'BB+'; Outlook Stable
- Short-Term FC and LC IDRs 'B'
- Viability Rating 'bb+'
- Support Rating '4'
- Support Rating Floor 'B+'
- National Long-Term Rating 'AA+(tur)'; Outlook Stable
- T2 capital notes: 'BB'

DENIZBANK TAS: Fitch Affirms Long-Term FC IDR Rating to 'BB+'
Fitch Ratings has affirmed the Long-Term Foreign Currency Issuer
Default Ratings (IDR) of Turk Ekonomi Bankasi A.S. (TEB),
Finansbank and ING Bank A.S. (INGBT) at 'BBB-' and of Denizbank
T.A.S. at 'BB+'. At the same time, the agency has downgraded the
Viability Ratings (VR) of INGBT and Denizbank to 'bb' from 'bb+'.
The VRs of TEB and Finansbank have been affirmed at 'bb+'.

The support-driven IDRs of Deniz Finansal Kiralama A.S. (Deniz
Leasing), Joint-Stock Company Denizbank Moscow (Denizbank Moscow)
and Finans Finansal Kiralama (Finans Leasing), which are
equalised with those of their parents, have also been affirmed.

A full list of rating actions is at the end of this commentary.


Following the rating actions, the banks' IDRs, National Ratings
and senior debt ratings are driven solely by parental support.
INGBT is fully owned by ING Bank N.V. (A/Stable). TEB is 55%-
owned by TEB Holding, a holding company in which BNP Paribas
(A+/Stable) holds a 50% stake. BNP Paribas owns an additional
44.8% stake directly in TEB. Finansbank is 99.8% owned by Qatar
National Bank S.A.Q. (QNB, AA-/Stable). The Long-Term Foreign
Currency IDRs of INGBT, TEB and Finansbank, are capped by
Turkey's 'BBB-' Country Ceiling, while their 'BBB-' Long-Term
Local Currency IDRs continue to take into account Turkish country

Prior to the downgrade of Denizbank's VR, its IDRs were driven
equally by the bank's standalone creditworthiness and parental
support at the 'BB+' level. However, the IDRs are now driven
solely by support from its 99.85% owner Sberbank (BBB-/Stable).
Denizbank is notched once from its parent. Fitch has affirmed its
Support Rating at '3'.

Deniz Leasing's, Denizbank Moscow's and Finans Leasing's support-
driven IDRs and National Ratings are equalised with those of
their parents. This reflects their close integration, including
the sharing of risk assessment systems, customers, branding and
management resources.

The banks' VRs reflect their moderate market shares (each account
for between 2% and 4% of sector assets) and franchises, ensuing
limited competitive advantages and as a result some uncertainty
about long-term prospects. There are also downside risks to asset
quality and performance, as for the sector as a whole, in light
of the concentration of the banks' operations in the volatile and
challenging Turkish market and the weaker growth outlook. Varying
degrees of exposure to the SME segment (which has proven among
the most sensitive to the economic downturn), foreign currency
lending (which results in inflated risk-weighted assets as the
Turkish lira depreciates) and to potentially risky sectors also
heightens credit risk.

In light of these risks, Fitch considers the banks' core
capitalisation to be only adequate, although somewhat stronger at
Finansbank. Fitch Core Capital (FCC) ratios were 9.3%
(Denizbank), 10.4% (INGBT), 10.6% (TEB) and 12.5% (Finansbank) at

At the same time, the banks' standalone credit profiles are
supported by asset quality ratios and profitability metrics that
are largely sound, and still reasonable funding and liquidity
profiles. These positive factors are reflected in VRs that are
at, or close to, the level of the sovereign Foreign Currency IDR.

The VRs of TEB and Finansbank were recently downgraded to 'bb+'
from 'bbb-' as a result of the downgrade of the Turkish sovereign
and the negative impact of this on the prospects for their asset
quality and performance and the sufficiency of capital and
liquidity buffers. The downgrades also reflected Fitch's view
that it is not appropriate to rate Turkish banks above the
sovereign based on their standalone strength and in light of the
weakening Turkish operating environment (see 'Fitch Downgrades 18
Banks on Sovereign Downgrade' at

The downgrades of INGBT's and Denizbank's VRs consider the weaker
operating environment, but are also driven by heavy reliance on
group funding and a more limited (albeit recently improved)
record of sound performance (INGBT) and moderate core
capitalisation (Denizbank). They also reflect the banks' fairly
high risk appetites in view of foreign currency lending above the
sector average and, in the case of Denizbank, high overall
exposure to the agricultural, tourism and project finance
sectors. Following the downgrades, the relative VR levels of the
banks are the same as prior to the sovereign downgrade.

Foreign currency lending (including foreign currency indexed
loans) is significant, albeit below the sector average at
Finansbank and TEB (24%-25% of gross loans at end-2016) due to
the banks' greater SME and retail focus. Foreign currency lending
was a very high 42% and 47% of INGBT's and Denizbank's gross
loans, respectively, at end-2016 driven by access to group
foreign currency funding, and high exposure to project finance
and tourism lending (Denizbank). The share of foreign currency
lending at Finansbank could rise, given its strategy to increase
corporate lending.

Fitch expects underlying asset quality ratios at all four banks
to weaken, as has been the case across the sector. At end-2016,
NPL ratios were a moderate 3%-4% at TEB, Denizbank and INGBT, but
a higher 5.6% at Finansbank, reflecting its greater focus on
higher-risk (higher-margin) retail lending. However, regulatory
watch list loans were also between 3.3% and 6.9% of the banks'
performing loan portfolios. Within this category, the share of
the riskiest portion (restructured watch list loans) has
typically also increased.

While Fitch considers the banks' core capitalisation generally to
be only adequate for their risk profiles, at end-2016 their total
capital ratios comfortably exceeded the target regulatory
threshold of 12%, supported by Tier 2 capital mostly provided by
parent banks. Pre-impairment profitability is also sound,
supported by above sector average net interest margins - the
result of the banks' focus on typically higher-margin but
potentially riskier lending - providing an additional buffer to
absorb credit losses. Internal capital generation is generally
also reasonable, and unreserved NPLs remain manageable (end-2016:
equal to under 10% of FCC at all banks).

Nevertheless, capital buffers should be considered in light of
likely pressure on performance resulting from slowing GDP growth,
further asset quality weakness and rising funding costs. The
increase in minimum capital requirements due to Basel III
implementation will also reduce the banks' capital flexibility
over the medium term, potentially hindering growth prospects.

Loans to deposit ratios at some of the banks are high, but this
largely reflects high parent funding. Denizbank's loans to
deposits ratio is somewhat stronger (end-2016: 108%), reflecting
its relatively stronger deposit franchise, while that of INGBT is
far above the sector average (189%) reflecting particularly high
group funding reliance. However, the presence of stronger foreign
parents for all banks mitigates refinancing risk, in Fitch's
view. At end-9M16, the banks generally held sufficient foreign
currency liquid assets to cover foreign currency wholesale
funding liabilities due within one year.


The IDRs, National and debt ratings of all four banks are
sensitive to any change in the ability or propensity of their
parent institutions to provide support. Their ratings are also
sensitive to a further downgrade of the sovereign rating and
lowering of the Country Ceiling. An upgrade of the sovereign and
an upward revision of the Country Ceiling would likely lead to an
upgrade TEB, INGBT and Finansbank.

Upside potential for the banks' VRs is limited in the near term,
given the weaker operating environment and the fact that VRs are
already at, or close to, the level of the sovereign foreign
currency rating.

INGBT's VR could be upgraded in the medium term in case of an
expansion of its franchise, strengthening of its deposit base and
an extended track record of sound performance, without a sharp
increase in its risk profile. Denizbank's VR could be upgraded if
there was a marked improvement in its core capitalisation and a
reduction in risk appetite as reflected in a reduction in lending
to more risky loan segments. TEB's and Finansbank's VRs remain at
the level of the Turkish sovereign and are unlikely to be
upgraded without an upgrade of the Turkish sovereign.

The VRs of all four banks are sensitive to a further weakening of
the operating environment and the potential negative impact of
this on their asset quality and performance and the sufficiency
of their capital and liquidity buffers.

BANK SUBSIDIARIES - Finans Finansal Kiralama, Deniz Finansal
Kiralama and Joint-Stock Company Denizbank Moscow
The IDRs of the banks' subsidiaries are equalised with those of
their respective parents, reflecting their strategic importance
to and integration with their shareholders. Consequently, the
subsidiaries' IDRs are sensitive to a change in their parents'
ratings or a change in the ability or propensity of parent banks
to provide support.

The rating actions are:

Denizbank, Deniz Finansal Kiralama and Joint-Stock Company
Denizbank Moscow:
Long-Term Foreign and Local Currency IDRs: affirmed at 'BB+';
Stable Outlook
Short-Term Foreign and Local Currency IDRs: affirmed at 'B'
Viability Rating (Denizbank only): downgraded to 'bb' from 'bb+'
Support Ratings: affirmed at '3'
National Ratings (Denizbank and Deniz Finansal Kiralama only):
affirmed at 'AA(tur)'; Stable Outlook

Finansbank and Finans Finansal Kiralama:
Long-Term Foreign and Local Currency IDRs: affirmed at 'BBB-';
Stable Outlook
Short-Term Foreign and Local Currency IDRs: affirmed at 'F3'
Viability Rating (Finansbank only): affirmed at 'bb+'
Support Ratings: affirmed at '2'
National Rating: affirmed at 'AAA(tur)'; Stable Outlook
Senior unsecured long-term debt (Finansbank only): affirmed at
Senior unsecured short-term debt (Finansbank only): affirmed at

ING Bank A.S.:
Long-Term Foreign and Local Currency IDRs: affirmed at 'BBB-';
Stable Outlook
Short-Term Foreign and Local Currency IDRs: affirmed at 'F3'
Viability Rating: downgraded to 'bb' from 'bb+'
Support Rating: affirmed at '2'
National Rating: affirmed at 'AAA(tur)'; Stable Outlook

Turk Ekonomi Bankasi:
Long-Term Foreign and Local Currency IDRs: affirmed at 'BBB-';
Stable Outlook
Short-Term Foreign and Local Currency IDRs: affirmed at 'F3'
Viability Rating: affirmed at 'bb+'
Support Rating: affirmed at '2'
National Rating: affirmed at 'AAA(tur)'; Stable Outlook
Senior unsecured long-term debt: affirmed at 'BBB-'
Senior unsecured short-term debt: affirmed at 'F3'

U N I T E D   K I N G D O M

AMEC FOSTER: Moody's Affirms Ba2 Corporate Family Rating
Moody's Investors Service has affirmed the Ba2 Corporate Family
Rating (CFR) and the Ba2-PD probability of default (PDR) rating
of Amec Foster Wheeler plc (AMFW). Concurrently, Moody's has
changed the outlook ascribed to all ratings to developing from


"The change in outlook considers as a positive the announcement
on March 13 that Wood Group -- a UK based engineering services
business -- has offered to acquire Amec in an all share
transaction. If this transaction is implemented as outlined, AMFW
will become part of a larger and better capitalized group", says
Scott Phillips -- a Moody's Vice President -- Senior Analyst and
Lead Analyst for AMFW. "But the outlook also reflects, as a
negative, the sustained high leverage of Amec, the slower than
expected process it has made on disposals and the anticipation of
a further deterioration in future free cash flow," added Mr.

On March 13, 2017, AMFW and Wood Group plc (Wood Group --
unrated), announced together their support for an all-share
acquisition of AMFW by Wood Group. The merger, if successfully
executed, would create a significantly enlarged entity with
combined revenues of over $12 billion (vs. $7 billion for AMFW on
a stand-alone basis). Furthermore, the combination would create a
leading engineering services and consultancy company with an
enhanced market position in the oil & gas segment. Prior to the
acquisition, Moody's estimates that in 2016 Wood Group's leverage
(adjusted debt / EBITDA) was around 3x, significantly lower than
the 6x forecasted for AMFW. The rating agency believes,
therefore, that the combined group would have a significantly
larger size, with opportunity for meaningful synergies, and with
a lower level of leverage than AMFW on a stand-alone basis.

Nevertheless, Moody's notes the financial performance of AMFW
continues to be worse than its expectations when the group's
ratings were downgraded to Ba2 in August 2016. At the time, the
rating agency expected AMFW to remain broadly Free Cash Flow
(FCF) positive and that it would be able to execute around GBP
500 million of asset disposals by the end of June 2017. While in
March 2017, AMFW announced positively some progress towards
reaching this disposals figure, it is unlikely that completion of
the program will occur before the end of the year. In addition to
the acquisition announcement on 13 March 2017, AMFW also said
that it had been planning to launch a GBP 500 million rights
issue and to cut its dividend to zero in light of its high
leverage and weak FCF generation. Furthermore, AMFW also said
that in its financial outlook that the market in its core oil &
gas end markets would remain challenging in 2017. Given this
view, Moody's increasingly believes that absent the proposed
takeover or a rights issue, that AMFW would now be unlikely to
improve metrics back in-line with its current rating.


Upwards pressure would exist if, following the envisaged
transaction, credit metrics were to strengthen with adjusted
leverage (debt to EBITDA) falling sustainably below 3.5 times in
conjunction with strong free cash flow generation.

Conversely, negative rating pressure could develop if the
proposed transaction were not accepted (e.g., by shareholders or
competition authorities), if AMFW is unable to fully execute its
intended disposal plan or if there is a further deterioration
FCF. In such a scenario, debt / EBITDA would likely remain above
4x. Additionally, a deterioration in the group's liquidity
profile would also be a factor for a downgrade.


The principal methodology used in these ratings was Construction
Industry published in November 2014.

JULIA'S HOUSE: Set to Close 2 Stores Due to Drop in Footfall
David Bol at Bridport News reports a charity is closing its shop
in Bridport after seeing a drop in footfall.

Julia's House shop in West Street will shut its doors on March
28, when its lease expires, according to Bridport News.  The
charity will also close its shop in Blandford in September.

The report notes Julia's House's remaining shops will continue to
trade as normal.

The closure is due to footfall at the Bridport shop having
dropped over the past few years, despite being kept freshly
stocked with clothes and items by volunteers, the report relays.

The report says Tracey Stanley, the charity's retail manager,
said: "It has been a difficult decision to make as these shops
have been at the heart of their communities for many years and
have done a fantastic job of fundraising and promoting the work
of Julia's House.

"Many small charity shops are struggling in these tough economic
times and our responsibility has to lie with making the most of
every donation and of the time given so generously by the
volunteers who help to man our shops."

She added: "We are working with the teams in both shops to look
at redeployment opportunities but in meantime we hope people will
still pop in and offer their support by shopping and donating

"Fortunately for us we have thriving, active friends' groups are
in both Bridport and Blandford and a team of amazing volunteers
who are wonderful ambassadors and fundraisers for Julia's House
and play a vital role in enabling us to be a continuing presence
in those towns."

Julia's House shops in Dorchester, Wimborne, Christchurch,
Bransgore, Wallisdown, Poole and its flagship store and warehouse
at Creekmoor continue to operate and will remain unchanged, the
report relays.

The charity's Broadstone shop recently moved to bigger premises
in the same road and has undergone a makeover to give it a more
upmarket, boutique feel, the report notes.  The store is proving
to be a big hit popular with customers since it was opened by
Julia's House patron Debra Stephenson, the report discloses.

The report relays Weymouth's shop will be also be getting a
makeover and moving to new premises in the town when its lease
expires later this year.

LONGHORNS BBQ: Opts to Close Jesmond Branch Amid CVA Process
Jonathon Manning at ChronicleLive reports that Newcastle's
Longhorns BBQ Smokehouse, a hip restaurant chain in the North
East, has closed its branch in Jesmond and also has stopped
serving food in five kitchens based in Cameron's pubs as it looks
to concentrate on its successful Mosley Street branch.

The closures come amidst a restructuring of Longhorns business,
which also involved the directors filing a Company Voluntary
Arrangement (CVA), ChronicleLive relates.

But company founder and managing director Paul Henzell says the
business will still continue to grow and is considering open more
branches of the chain, ChronicleLive notes.

Although the Jesmond location is currently unoccupied, Longhorns'
management team is currently in talks with another party that is
looking to take up the lease, ChronicleLive discloses.

Staff were impacted at the Jesmond restaurant, although a number
were redeployed at the Mosley Street branch, ChronicleLive

RANGERS FOOTBALL: Court to Hear Appeal in Oldco "Big Tax Case"
Paul Ward at The Scotsman reports that the UK's highest court is
to hear an appeal by the liquidators of oldco Rangers over the
so-called "big tax case".

Last year, judges at the Court of Session in Edinburgh granted
BDO's request to bring an appeal against an earlier legal ruling
to the Supreme Court in London, The Scotsman recounts.

It comes after Her Majesty's Revenue and Customs (HMRC) won an
appeal in November 2015 over the use of the now-outlawed employee
benefit trusts (EBT) at the club during the first decade of the
century, The Scotsman relays.

That Court of Session ruling agreed with HMRC's contention that
the scheme, which involved payments to former Rangers employees,
amounted to "a mere redirection of earnings which did not remove
the liability of employees to income tax", The Scotsman notes.

The decision was in relation to Murray Group companies, including
the liquidated company now called RFC 2012 plc, and does not
affect the current regime at Ibrox, The Scotsman states.

BDO is bidding to overturn the ruling and five Supreme Court
justices are to examine whether the Court of Session erred in law
in reversing the original tribunal outcome, The Scotsman

                 About Rangers Football Club

Rangers Football Club PLC --
-- is a United Kingdom-based company engaged in the operation of
a professional football club.

THRONES 2014-1: S&P Raises Rating on Cl. F-Dfrd Certs. to B+
S&P Global Ratings raised its credit ratings on Thrones 2014-1
PLC's interest-deferrable class B-Dfrd to F-Dfrd notes.  At the
same time, S&P has affirmed its rating on the class A notes.

The rating actions follow S&P's credit and cash flow analysis of
the transaction using information from the November 2016 investor
report.  S&P's analysis reflects the application of its European
residential loans criteria and its current counterparty criteria.

Since closing in August 2014, the total level of arrears
increased to 9.62% as of end-October 2016 from 7.54%, based on
loan-level data and without counting for arrears capitalization.
This increase brought the total arrears closer to the level in
S&P's U.K. nonconforming index, which was 16.3% as of 3Q 2016.
In S&P's credit model, it reflected the arrears capitalization
and projected a further increase in arrears based on the
transaction's current developments.  Cumulative defaults in the
transaction remain low, at 0.09% of the closing pool balance.

Based on S&P's credit analysis, the underlying portfolio's
weighted-average foreclosure frequency (WAFF) has decreased since
closing.  This decline is mainly due to an increase in seasoning,
the positive effect of which was partially offset by a higher
modeled level of arrears.  A small decrease in the portfolio's
original loan-to-value (OLTV) ratio, and in the weight of short-
term interest-only loans and first-time buyers have marginally
benefited the WAFF.

S&P's weighted-average loss severity (WALS) calculations have
increased since closing at the 'AAA' to 'BBB' rating levels, but
have decreased at lower rating levels.  Although the transaction
has benefitted from the decrease in the weighted-average current
LTV ratio, this has been offset by the increase in S&P's
repossession market-value decline assumptions since closing,
which have been greater at higher rating levels.

Rating       WAFF     WALS
level         (%)      (%)
AAA          63.5     62.2
AA           48.2     56.1
A            37.7     45.8
BBB          30.4     39.2
BB           21.7     34.2

The transaction benefits from a nonamortizing reserve fund and a
nonamortizing liquidity reserve.  The reserve fund has been
topped up since closing to meet its required amount, and has
never been drawn.  The buildup in the reserve fund ended in
November 2016 when it reached its required level of GBP9.8
million, up from GBP4.6 million at closing.  The liquidity
reserve was fully funded at closing to meet its required amount,
and has not been used.  Due to the ongoing amortization of the
class A notes and the topping up of the reserve fund from the
excess spread, the available credit enhancement for all of the
rated classes of notes has increased significantly since closing.

The transaction is exposed to the counterparty risk of Citibank
N.A., (London Branch) as the transaction account provider.  S&P
derives the rating on this entity from its parent, Citibank N.A.
(A+/Stable/A-1), following the application of its bank branch
criteria.  S&P considers that the replacement language in the
bank account agreement complies with its current counterparty
criteria and can support up to a 'AAA' rating on all classes of
notes in this transaction.  S&P also believes that the
replacement conditions relating to the collection account
provider, Barclays Bank PLC (A-/Negative/A-2), meet S&P's
counterparty criteria and support a 'AAA' rating on the notes.
S&P models commingling risk related to the servicer as a one-
month liquidity stress.

S&P's rating on the class A notes addresses the timely payment of
interest and the ultimate repayment of principal on, or before,
the legal final maturity date of the notes.  S&P's ratings on the
class B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, and F-Dfrd notes address
the ultimate repayment of interest and principal on, or before,
legal final maturity.

The results of S&P's cash flow analysis support the currently
assigned rating on the class A notes.  S&P has therefore affirmed
its 'AAA (sf)' rating on the class A notes.  S&P's analysis also
indicates that the class B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, and F-
Dfrd notes support higher ratings than those currently assigned.
S&P has therefore raised its ratings on these classes of notes.

S&P's credit stability analysis indicates that the maximum
projected deterioration that it would expect at each rating level
for the one- and three-year horizons, under moderate stress
conditions, is in line with S&P's credit stability criteria.

Thrones 2014-1 is a securitization of first-lien U.K.
nonconforming residential mortgage loans, originated by Edeus
Mortgage Creators Ltd. and Victoria Mortgage Funding Ltd.  The
legal title holder is Raphael Mortgages Ltd.  The portfolio
servicer is Mars Capital Finance Ltd.


Class             Rating
             To              From

Thrones 2014-1 PLC
GBP307.021 Million Mortgage-Backed Floating-Rate Notes and
Unrated Residual Certificates

Rating Affirmed

A            AAA (sf)

Ratings Raised

B-Dfrd       AA+ (sf)        AA (sf)
C-Dfrd       AA- (sf)        A (sf)
D-Dfrd       A- (sf)         BBB (sf)
E-Dfrd       BB+ (sf)        BB (sf)
F-Dfrd       B+ (sf)         B (sf)

UPG PLC: 13 Jobs Saved After Accept Cards Was Sold to New Owner
Laurence Kilgannon at Insider Limited reports that jobs have been
saved after a card payment brokering service with an operation in
Halifax was acquired following the administration of its parent.

Chris Pole -- -- and Mark Orton -- from KPMG were appointed joint
administrators to UPG plc, a payment services provider, on 27
February 2017, according to Insider Limited.

UPG operated Accept Cards, a card payment brokering service
generating commissions from referrals to major banks and
acquirers, according to Insider Limited.

The report says Accept Cards was sold to a new owner last week,
shortly after the administration appointment, which has resulted
in 13 jobs being secured.

However, 17 redundancies have been made at UPG Gateway, which
provides a platform for processing transactional payment data
including online payments, telephone payments and the supply of
point of sale terminals, the report notes.

The report discloses that administrators have retained 17 UPG
Gateway employees while they continue to explore options to sell
this division.

The report adds that Chris Pole, partner at KPMG and joint
administrator, said: "UPG has been affected by difficult trading
conditions and funding pressures which have proved to be
unsustainable. This ultimately resulted in the directors taking
the difficult decision to place it into administration.

"We are currently reviewing options for the UPG Gateway business,
including the option to continue to trade in the short term,
while we seek a buyer for the business and its assets.

"We would encourage anybody who may be interested to contact the
joint administrators as soon as possible."


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  Go to 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

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